TIPS FOR BUYING AN INVESTMENT PROPERTY

Home prices are at an all time low and rents are on the rise. This is a winning formula for an investor.  Smart investors cannot make the same mistakes of the past by buying properties with payments more then what they could get for rent. Tip #1 You need to be able to determine ahead of time what kind of return you expect from the investment. Having an understanding of expected returns will help you determine which investment property is right for you.  Tip#2 Banks will require that you put down 20% to purchase however you may be able to qualify for a Home Path loan in which you would only put down 10% by purchasing a Fannie Mae bank owned property. Tip #4 Buying a bank owned home is one way to get a home at the lowest price however expect to be up against a lot of competition. A Short Sale might be the way to go if you have some time. Short Sales can take up to 3 months for bank approval but they are typically priced below the market to attract offers and avoid foreclosure. Tip#5 You may be able to buy real estate using funds in your retirement account through a self directed IRA.  Tip#6 Investing in Real Estate may provide greater return on your money then traditional investments.  For more information on buying investment property call me today at 805-478-0494 – Ray Vega, Broker Associate

INTERESTING ARTICLE ON FANNIE MAE PROPERTIES

http://www.cnbc.com/id/45925851

The government has attempted different programs to try to and solve the foreclosure mess that we are in. This program will not help you keep your home but if the program is implemented it would help people become renters of the home without having to move.

NEW LISTING COMING SOON!

This BANK OWNED HOME features 3 bedrooms 2 baths with tiled living room and large backyard. With some TLC this will be a great home! Pricing not yet set but should be in the mid 100k range. Call me today to preview it before it comes on the market!

BANK OWNED HOMES NOT YET ON THE MARKET

We have a constant inventory of Bank Owned Homes that are not yet on the market. For a FREE List of these homes call Ray Vega at 805-478-0494 or email rvega@rayvegateam.com

FORECLOSURE ALTERNATIVES

Prices have dropped 50% since 2006 in some markets and many homeowners are left with mortgages double the value of their homes and payments that have risen recently due to Adjustable Rate Mortgage products.  If you find yourself in this situation you may feel like there is no hope.  Here are a few options: 1. Loan Modification, 2. Deed In Lieu of Foreclosure, and 3. Short Sale.  So many homeowners have resorted to letting their homes go in foreclosure without looking into these other options.  You may be able to work out a loan modification with your bank using the governments “Making Home Affordable Program.” Your payment or interest may be reduced temporarily however you may have to wait months to years to get a response and approval rates are low. You could also give back the property to bank under a Died in Lieu of Foreclosure. The last option that may be right if you find yourself with a home you cannot keep is to do a short sale.  With a short sale you can stay in your home until it sells, have fewer credit implications then a foreclosure, and may be eligible to receive relocation assistance from the bank at closing.

Making the first step to deal with this problem is hard, but once you take the first step in the right direction you will be on your way to a brighter financial future.   

For a confidential Real Estate analysis please call me today at 805-310-5164. – Ray Vega