As financially damaging as the mortgage collapse of 2009 was, it wasn’t nearly as widespread as what we are currently facing. There are many people in various sectors who are currently not earning a paycheck or generating income. Savings have been exhausted and paying everyday bills has become more difficult. Fortunately, the government has thrown many homeowners a lifeline and halted mortgage payments for the time being. Before you blindly assume that you do not, or should not, make your payment there are a few critical items you should know. This information could have a dramatic impact on your situation in just a short few months down the road. Here are five things you should do if you can’t make your next mortgage payment.
1) Call Customer Service
Don’t make the assumption that you don’t have to pay your mortgage based on what you heard on the news or saw on social media. Sure, there is a good chance that your lender is offering some kind of deferment, but it isn’t a guarantee. Even if they are offering something you need to know exactly what you are getting into. There is a big difference between a modification and a deferment. A loan modification typically will decrease your interest rate to a monthly payment you can afford. Any missed payments are tacked onto the back end of the loan. With a deferment your lender is simply allowing you to miss the next three months of payments without any negative impact on your credit. The catch is that they are going to ask for the payment in full after the 90 day period. If you cannot make the full payment your lender may start the process of foreclosure or take some other kind of adverse action. Individual lenders may handle things differently which is why it is so important to talk to customer service before making any decision.
2) Construct a 3 Month Plan
As of right now nobody really knows when things are going to change. Some states appear to be less impacted than others, but it doesn’t mean they are totally out of the woods. If you don’t think you can make your payment you should come up with a short term three month plan. Simply put, how do you plan on making your payment after the 90 day period? Lenders don’t have to accept partial payments or even extend the deferment period if they don’t want to. To err on the side of caution you should assume that you need the full payment in order to stave off foreclosure. What is the likelihood of your business opening in the next few weeks or your paycheck bouncing back to normal? If it does, will you have the ability to accumulate the full payment? Without a firm plan in place you run the risk of losing your home.
3) Weigh Future Earnings
There are many sectors impacted by COVID-19. Everything from restaurants to commissioned sales agents have seen a severe dip in income. While the short term goal is to protect your home from foreclosure in the next few months, you also need to think about the relative big picture. Is your employment or business in an area that will need time to ramp back up? Will you make the some income over the next 12 months? Will you be forced to change careers and prolong the period prior to generating income? You don’t want to simply put a Band-Aid on the problem if the cut is much deeper. It may be best to take action now, before things get too much worse.
4) Capital/Equity Evaluation
If you can’t make your payment and your employment situation is shaky, you should do a full capital evaluation. In addition to basic checking and savings accounts you should look into your retirement funds, pensions, stock holdings and any other type of capital accounts. Perhaps, you could draw from these penalty free or with a discounted interest rate. If you have an accountant or financial advisor it is recommended to talk to them prior to making any rash decisions. You can also explore the option of a HELOC if you have equity. HELOC rates are nearing historic lows and can provide interest only payment flexibility. That being said, they also add to total amount owed, which will negate future sales profits.
5) Get a Cash Offer For Your Property
If you know that your employment situation may not improve for several months, it is best to act now. Before you get any lates on your credit report or the real estate market dips it could be worth considering selling now. Selling now could put you in a better position to capture what equity you do have in your home and limit risk of losing your home to foreclosure if things don’t improve. Having an offer on the table would at least give you an idea of what you’d net and walk away with as a result of the sale. With us, getting a cash offer for you property is easy and fast…..
Contact 180 Homes today!
Doing nothing about your situation likely will not improve it – hoping and wishing will not make the problem go away. The reality is that you most likely have more positive options than you think. Start by reaching out to customer service, taking inventory on your income, assets and employment, and reaching out to us to see what we could pay in cash for your home. The quicker you are to take action the more likely you can make the best of a negative situation.
In the ever-evolving Long Island real estate market, you might find yourself considering the option of selling a house as is. It’s an avenue that promises potential savings in time and resources. But like any property sale, it comes with its unique set of challenges and benefits.
Understanding As Is House Sales
Selling a house as is means you’re offering the property without committing to any repairs or renovations. Essentially, what you see is what you get. In Long Island's fiercely competitive market, selling a house as is can be particularly appealing in scenarios like:
Benefits to Selling a House As-Is
When you’re selling a house in its current condition, you’re essentially streamlining the sale process. Here’s what you stand to gain:
Potential Challenges to Be Aware Of
However, with benefits come challenges. Because the house is sold in its present state, it might fetch a lower price than if it were renovated. Yet, if you factor in the costs and time of potential renovations, this pricing might still be well worth the trade-off. It’s essential to manage buyer perceptions. Being transparent about the house’s condition can prevent misunderstandings and foster trust.
How to Sell a House As-Is on Long Island
Navigating the Long Island real estate market can seem like a complex dance, especially when you’re exploring the less-trodden path of selling a house as is. To ensure you don’t miss a step and make the most out of your as-is sale, here’s a structured guide to steer you in the right direction:
Selling a House As Is to Cash Buyers
If you’re looking to simplify the process of selling a house as is, cash buyers are your best bet. Cash buyers can finalize sales without the cumbersome traditional escrow process. Plus, you eliminate potential issues like loan denials. The absence of lengthy inspections or appraisals further hastens the process. Here’s how the process works:
The key to a successful home sale is partnering with dependable cash buyers. Local services with commendable reviews and straightforward methodologies are your best bet. 180 Homes stands out in this regard, ensuring a hassle-free selling experience for countless homeowners. Kickstart the process with a simple phone call or by submitting our online form.
180 Homes Makes Selling Your House As Is Easy
Selling a property can be daunting, but the process becomes considerably smoother when you consider selling a house as is in Long Island. By considering cash buyers, you’re setting yourself up for a seamless transaction. Remember, with the right steps and approach, your property sale can be well worth the work.
At 180 Homes, we don’t mandate a home inspection or appraisal to make our cash-as-is offer. For a smooth and stress-free property transaction, turn to 180 Homes. Learn more about 180 Homes’ simple as-is cash offers today!
Not all properties are created equal. Some can become very difficult for homeowners, realtors, and real estate investors to resell. Depending on the holding costs and resell value fluctuations, many of these hard-to-sell properties can sometimes sell for less than they were purchased. While these properties might have some unique challenges for selling, investors need to ensure they optimize profits by selling at the right time. So what properties are among the toughest to sell and what makes them harder to sell? Why would savvy real estate investors buy them anyway?
In this article, 180 Homes will explore some of the most hard-to-sell homes, unsellable property types, as well as some of the strategies real estate professionals utilize to get the most value out of these hard-to-sell homes and properties.
Hard to Sell Homes & Property Types
There is an expansive list of reasons why a property might be difficult to sell. These reasons stem from locational preferences to property conditions, but a few obstacles don’t mean that you have an unsellable property on your hands. Let’s review some of the hardest to sell homes and property types.
1) Rural Land
Rural lots and acreage can often be some of the cheapest and least expensive real estate to get into for individuals that are tight on capital. Many deals can be found on lots from coast to coast, with no credit check, owner financing, and minimal down payment. Some rural lands are very remote. While this is less of an issue when there is internet to provide work, there may be a lack of utilities, or simply not much to do. After purchasing, those that thought they could live there may end up abandoning their properties if they aren’t used to that type of lifestyle. There is also normally less demand, and a far smaller buyer pool for this type of property compared to, say, a condo in Manhattan. This could be seen as a drawback but it’s also advantageous for buyers. If rural land can be bought cheap while undervalued and held until they appreciate, there can be great profits unlocked. The holding costs on these properties can sometimes be less than $100 a year.
2) Mobile Homes
Mobile home parks are making a notable comeback in investment circles. Demand for mobile home park living is surging too. There is a massive demand for affordable housing in the US, and mobile homes are a cost-effective solution. These properties can be incredibly strong cash flow producers. However, mobile homes are still associated with a certain stigma, and unfortunately, most mortgage lenders aren’t interested in financing them for applicants. That can make mobile homes very difficult to sell. In retirement areas where parks are surrounded by wealthy and luxury homes, there may be cash buyers, but many of these properties may need to be sold with seller financing.
3) Condo-Hotel Units
As the economy regulated after COVID-19, condo-hotel units are coming back on the rental property market. Some of these units might be in an exclusive luxury building in prime locations. The arrangement can be appealing for some investors that would like their properties to double as occasional vacation homes. However, these units can be hard to finance and often require large down payments. Sometimes this isn’t a problem, but even the most prestigious developers and well-located condo-hotels have suffered from a lack of interest when times are tough. Some condo-hotel investors have even gone bankrupt due to a lack of movement. If you’ll use this property anyway, and can afford to hold on long term, a condo-hotel unit may be worth buying. Make sure to pay attention to the fine print and double-check the numbers before buying a condo-hotel unit.
Co-ops are a property type that is owned by a corporation, investors do not own units outright but the transaction is typically more financially stable than owning a condo or home. While co-ops are cheaper and a foreclosure is rare, co-ops almost became extinct in most of the U.S. during the last housing boom. Co-ops are considered hard to sell because they’re difficult to finance in the eyes of lenders, and a lack of true ownership can be a huge turn-off to other buyers. But a new surge in foreign investment and the ability to use co-op structures to qualify hundreds of international investors for visas at the same time is reviving their appeal. Investors need to make sure their co-op is in the right location to draw these tenants, and that the marketing and aesthetics appeal to the right buyers too.
5) Over-Sized Homes
Over-sized homes are just one type of over-improvement in the real estate game. A mistake commonly made by regular homeowners and newbie investors is that size equates to value. It doesn’t matter if you have a 3,500 square foot home with 5 bedrooms if every other property for miles tops out at 3 bedrooms and 1,400 feet. Appraisals that support a higher loan amount will be a nightmare to secure. No matter how much others want to buy your masterpiece, they often simply won’t be able to finance it due to the skyrocketed value. Many experienced investors focus on the ugly house on the block for a good reason, the room for improvement is much more natural compared to the local listing.
6) Tiny Homes
Tiny houses may be trending on TV and in the minds of many who seek affordable housing and financial freedom. However, many mortgage lenders won’t finance small square footage units making tiny houses hard-to-sell homes. This issue not only applies to creative new housing structures but condos as well. If end buyers can’t finance the property, they are harder to sell. But if the buyer pool is big enough there can be seller financing options, or some cash buyers lurking out there that could work for the transaction. Luckily, the holding costs on these properties can be lower while you are waiting to resell.
7) Stalled Construction Projects
The financial crises of the early 2000s have left many communities littered with stalled and failed construction projects. From entire new communities to hotels, to strip malls and homes, construction stalled for a long time. Buying a half-finished property can be difficult in terms of navigating permits, code issues, and financing. But the data shows that construction REOs and non-performing loans have made up the bulk of distressed bank inventory for a while. That’s a chance at even bigger discounts, and less competition. For those that can get in and finish the work, or re-brand the project and raise more capital, there can be substantial profit margins for this “unsellable” property.
Learn How to Get Rid of a House that Won't Sell
with 180 Homes
These hard-to-sell properties can be both risky and highly rewarding with an investor that is experienced in real estate marketing and has the reserves to cover holding costs and set up pre-arranged exits. Just because a house or rental investment might be viewed as unsellable property, with the right experience and sales strategy, even the hardest-to-sell home can find a happy buyer on the market. 180 Homes specialize in CASH AS-IS offers to help expedite your real estate experience. Contact 180 Homes to get your hard-to-sell home or property on the market today!
Need to sell your house fast on Long Island, New York? You’re not alone. Whether you’re moving for work or buying a new place, selling your house fast is often a top priority. This guide will help you do just that, with a special focus on how selling to cash buyers can speed up the process.
Understanding Long Islands Housing Market
Long Island has a busy housing market. However, selling your house the usual way can take some time, depending on the market and how appealing your house is to buyers. Knowing this can help you sell your house fast.
Getting Your House Ready for a Quick Sale
Usually, to sell your house fast, you might need to make it look nice for potential buyers. This often includes some common steps:
This could be as simple as a new paint job or fixing small things here and there. But, these steps cost money and can delay when you can sell your house.
Staging and Photography
Making your house look good through staging and professional photos can attract buyers. But again, this takes time and money.
Now, let’s look at how selling to a cash buyer can be different:
Cash Buyers-Saving Time and Money
Cash buyers are a quicker option. They buy houses “as is,” meaning you don’t have to spend time or money on home improvements, staging, or photography. This speeds up the selling process, helping you sell your house fast and save money.
Choosing How to Sell
Traditional Selling: The usual way is to list your house with a real estate agent, who then shows your house to potential buyers. This can take a while and usually costs more due to agent fees.
Online Listings: Listing your house online can reach more people, but still requires time and effort to manage.
Cash Buyers-The Quickest Way:Cash buyers offer a fast and simple way to sell your house fast on Long Island. They make competitive offers and buy your house “as is,” cutting out the need for repairs or improvements. This way, you can close the deal much faster compared to the traditional methods.
Finding Good Cash Buyers on Long Island
It’s important to find trustworthy cash buyers. Look for local services with good reviews and clear processes. Here at 180 Homes, we pride ourselves on making the home-selling process as easy as possible and have helped hundreds of people sell their home quickly. Getting started is as easy as a phone call or filling out a form online.
The Process of a Cash Sale
Selling to a cash buyer is easy. Here’s how it works:
Benefits of a Cash Sale
A cash sale comes with many benefits that can make your life a lot easier:
180 Homes Expedites Your Real Estate Experience
To sell your house fast on Long Island, preparing your house, picking the right way to sell, and especially considering cash buyers, are important steps. Following this guide can help you sell your house fast, letting you move on with your plans without delay.
180 Homes is here to make selling your home fast and easy. Our cash as-is offers can expedite the real estate process so that you don’t have to worry about finding the perfect buyer. Contact today to learn more!
Nothing is more beneficial to your long term financial health than the right rental property. Sure, quick flips and rehabs are great for the short term but a strategic acquisition of a rental property can completely change your portfolio. Not only are they a source for surplus monthly cash flow, but they also build equity for the future which you can use can use as a means to purchase additional properties. It is not hyperbole to say that all it takes is one key rental property to get your portfolio headed in the right direction. Here are five steps to purchase your first rental property.
1) Understanding Financing
If you have been toying with the idea of a rental property purchase the first thing you need to understand is how the financing works. There is a huge difference in owner occupied and investment property loan underwriting guidelines. For an owner occupied property there are loan programs that require just 3% down payment, credit scores under 600 and decreased reserve requirements. With any investment property you should anticipate needing a credit score of at least 680, 20% down payment and possibly six months of reserves in the bank. Additionally you also need to factor in tax and insurance escrows as well as increased closing costs. Lenders will scrutinize loan applications for a three family investment property much more closely than they will a single family owner occupied one. Investment properties are considered a higher risk and you can expect the process to reflect that.
2) Choose Market(s)
When it comes to purchasing a rental property you should find the market as opposed to finding the property. What that means is that not every property makes a good rental property. A beautiful home on 30 acres in the middle of a rural area doesn’t have the same renter pool as one in the middle of a booming city. Price is always important on any purchase, but not the most important factor when it comes to buying a rental property. You need to narrow down a market, or two, that can sustain rental demand for both the short and long term. The right market not only gives you security but allows you flexibility down the road. If the market continues to trend upwards you can comfortably increase your rent. In poor markets you are often left to take whatever tenant you can find, usually on their terms.
3) Evaluate Individual Investment
There are plenty of items to consider on every prospective purchase. Before you do anything else you should decide how you will manage the property. Are you able to manage the property yourself or do you need a dedicated property manager? If you have a full time job that doesn’t allow you to take phone calls or get away during the day you should strongly consider a property manager. Whatever you decide has a definite impact on your bottom line. A property manager generally charges 10% of the monthly rent received. In addition to management you need to evaluate how much, if any repairs are needed, as well as monthly taxes, utilities and insurance. Also, review the title to see if there are any prospective issues as far as property lines, liens and anything else.
4) Run The Numbers
No two rental properties are exactly the same. Numbers you run for one property may not be the same for a property even in the same town. From the outside you may think that monthly cash flow is simply the rent received minus the mortgage payment and any utilities. Sure, this is a huge part of that formula but there are other important factors. You need to make sure you are realistic with your numbers before you buy or you will be left disappointed after. For starters, is the monthly rent a realistic and sustainable number? Making a few simple changes doesn’t mean you can tack on a few hundred dollars to the rent. You also need to be realistic with what utilities you are paying for. Most importantly you can’t ignore seemingly minor items like snow removal, lawn care, maintenance items and a reserve fund. Only when you know all the numbers associated should you move forward.
5) Make Your Offer
You don’t need to be a seasoned investor to understand that the lower you get the property for the higher your monthly cash flow. It is critical that you make an offer that works for you. Too many investors fall in love with a property that they fail to see the big picture. They want to make the acquisition so bad that they ignore the numbers. Before they know it their projections are blown up and the deal they thought they were getting is gone. Even if it means missing out on a property or two you need to stick to your guns and stay true to your numbers. If not you will be behind the eight ball, chasing profits right from the start. The goal is to acquire a property that you can make money on, not simply add to your portfolio.