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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

Archives for February 2021

The Most Likely Causes Behind Your Home’s Roof Damage

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A roof can persist for quite a while, typically decades, without needing to be substituted. But natural causes such as poisonous weather and neighboring trees may cause serious damage that means your roof will have to be mended or replaced sooner than anticipated. Consider having your roof inspected by a specialist roofer, should you experience any of these in your area:

High Winds
Stormy winds, wind shear, straight-line winds and tornado-type winds can wreak havoc with your roof. All it requires is a sharp gust of wind to hit your roof in just the ideal angle to cause serious harm. Existing problems from long-term wear and tear or past windstorms can weaken the roof, removing shingles and loosening downspouts, in addition to eroding chimney bricks. Whenever the next high-speed end comes together, your roof could be badly damaged or blown off.

Precipitation
Repeated bouts of heavy snow or dowsing rain may place substantial strain on a roof. As time passes, shingles may break off along with different sorts of structural issues that require immediate repair to keep the problem from getting worse. Water harm leaking through cracks and missing shingles can do significant harm. Failure to see the harm or take action to fix it makes your roof longer vulnerable to the next major downpour, which may exacerbate the harm and lead to more costly repairs.

Icy Conditions
Freezing rain or melting snow may deposit layers of ice in your roof, including pressure to the construction and damaging the shingles, gutters and downspouts. Based upon the magnitude of an ice storm or the quantity of ice buildup on your house, the harm could be intense, costing thousands of dollars to fix. As you can’t thaw the ice that accumulates on the roof, you can check the damage once it melts and look after any first problems right away.

Tree Branches
A weak or aging tree near your house can topple with no warning, crushing part of your gutter and roof system. A large tree branch can cause heavy damage by falling in your home and scraping at the shingles or chipping in the chimney. Remove tree limbs that pose a danger to your home as soon as possible. If part of a tree does fall on your home, check for damage and fix it immediately.

Roofing Professionals
Even though you might have the ability to manage minor roof repairs yourself, you should aim to hire roofing specialists to look after the bigger problems. They possess the know-how and expertise, as well as the resources and teamwork, to receive your roof back to normal as fast as possible. Get a review for the damage assessment alongside a quote for the necessary work. You can then negotiate and how to get the task finished.

Roof issues are not uncommon. Assess your roof when you suspect harm, and telephone roof experts for help if required. Keep a watch out for the components and how they impact your roof to avoid significant problems in the future.

Ideas To Cover Your Next Down Payment On A Rental Property

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Whether you are purchasing your first house or your 14th, try the following ideas to create property investing less expensive.

1. HELOC or RELOC
While homeowner mortgages do not typically permit you to borrow any portion of the deposit, investment property creditors do normally let it, which opens up many opportunities for borrowing your down payment. In case you’ve got a house equity credit line (HELOC) in your main residence, you are able to draw it to supply down your next payment. It makes for a flexible means to borrow and repay the debt on your personal schedule.

Many landlords do not know they can also take out HELOCs against leasing properties with equity. I call those”RELOCs,” but I am not sure anyone else can. Irrespective of the real estate type, know you could tap present equity not merely to fund property updates , but in addition to pay down your next payment.

2. Cross-Collateralize Present Properties
A different way to tap current equity would be to place up another property for security. The lender places a lien on the two possessions instead of collecting a deposit.

It works like this: Suppose you own a home worth $100,000, which you only spend $40,000 on. You wish to purchase an additional $100,000 rental home, but the creditor asks for a 20% ($20,000) down payment. Rather than coughing up $20,000, you provide to allow the creditor cross-collateralize your current home with $60,000 equity within it.

They place a lien against your new house and the old home with equity and give you the entire $100,000 purchase price. That versatility is part of everything you pay for if you take a hard cash loan or a leasing home mortgage out of a portfolio lender.

3. Utilize Unsecured Business Credit Lines and Cards
Do not have additional properties with equity? No sweat. As a property agent with an LLC, you are eligible for company credit cards and charge lines. These lenders may review your organization credit, but just as often they concentrate on your own own credit, especially in the event that you have not established company credit however.

I have used credit cards to fund a home purchase and renovations before. It is possible to purchase the stuff straight on credit cards without a penalty, and lots of builders now accept credit cards, possibly with a two – 3% convenience charge. A 3 – 4% cash advance fee is usually more affordable than the overall fees billed by hard money lenders or leasing property mortgage creditors.

4. Seller Financing
An oldie but goodie, you could always attempt to negotiate a seller carryback, also referred to as a seller-held next mortgage.

Say your rental home mortgage lender needs a 20 percent down payment. Then you approach the seller and request them to offer you another mortgage to pay any or all of itand you generally pay it back in a couple of decades. You avert a deposit, they score a source of passive income and also get some interest during the upcoming few decades. Win-win. And for this matter, you may even attempt to negotiate whole seller funding as your mortgage.

5. Tap Into Your Roth IRA
One of the many overlooked advantages of a Roth IRA is that you may draw gifts tax-free and penalty-free, any moment. This makes it the most flexible retirement accounts available.

Obviously, when you raid your Roth IRA, you miss out on potential tax-free compounding. However, by utilizing the money to purchase rental properties, you may potentially score much higher yields, greater compounding and also the chance to retire early on rents. To put it differently, it might wind up serving the exact same function, with much quicker results.

6. Partner With Deeper Pockets
As you prepare to purchase your first house or 2, it will help to locate a senior spouse. This is somebody who can point out common pitfalls and errors made by novice traders.

And, ideally, somebody who can help pay some of their deposit. Just understand that in the event you do not bring expertise or even money to the venture, you are probably going to have to do the lion’s share of their labour to pull your weight.

7. Assessing an Owner-Occupied Mortgage
Lease property mortgage lenders demand a bare minimum of 20 percent, regularly 25 – 30 percent. This could add up to a huge quantity of money, for assets costing $200,000, $500,000, occasionally even $1,000,000 or more.

But homeowner mortgages need as few as 3 percent down; cases comprise Fannie Mae’s HomeReady loan application , Freddie Mac’s Home Possible program and FHA loans’ famous 3.5percent down payment. Obviously, owner-occupied mortgage loans need you to really occupy the house. Luckily, you have a lot of alternatives to fulfill that condition while still raising your rental portfolio.

The traditional method entails housing hacking: purchasing a duplex to rent 1 unit and reside at another –or even a triplex or fourplex. Residential mortgage loans permit up to four components. You may also use the rental income in another device (s) to assist you meet the requirements for the creditor’s income requirements.

On the other hand, the choices do not stop there. You could move in the property for a single year–that satisfies lenders’ occupancy demands –then proceed out, maintaining the house to get a rental. You can achieve this with single-family houses, or using multifamily properties which you home hacked.

In reality, you may even home hack through your adult kids to ensure they meet the occupancy requirement as opposed to you personally. Since you comparison store lenders, inquire about”kiddie condominium” loan plans in which you associate with your adult kids on household purchases, and they proceed in as you remain comfortably nestled on your house.

Last Ideas
You’ve got loads of alternatives to fund rental properties–and just as many to pay your deposit.

The quicker you construct passive rental income, the less you need to rely on your own nine-to-five job. Since you are able to pay more of your living expenses with lease income, you approach financial freedom. Once there, functioning becomes discretionary, and you’ll be able to devote the remainder of your life doing, well, anything you desire!

Looking for investment property? Check out our website or contact our office to speak with an agent who can assist you in all your real estate needs.

Preparing For Spring Real Estate

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Spring is regarded as a generally favorable time for both sellers and buyers since the weather improves allowing houses to sell well and more frequently.

Thus, if you are considering listing your house in the spring, then what are a few things you can do to prepare? Besides major house repairs, you will find several DIY jobs which you can do around your home which are cheap, high-return improvements when it is time to place your house on the market.

Simple tasks such as cleaning windows, dusting baseboards, polishing flooring, and tidying up around the lawn or incorporating a few landscaping can truly make a significant difference when a client visits your property. Other jobs like organizing and decorate each space, replacing light bulbs where required, along with a new touch of paint can help prospective customers to envision themselves into their new house and also make your home stick out among others they’ve seen.

Time to do your own research and become ready! Heading to the spring market for a buyer may be an overwhelming experience if you allow it. To be able to make things simpler, begin with consulting with a recommended local realtor and mortgage adviser. Express your needs and concerns frankly to ensure these professionals may supply you the very best service based on your requirements. Your lender will conduct a pre-qualified check to determine what price range will suit your budget, discuss with you the various funding options available to you, and also to inform you whether there are any financial or credit areas you might have to work on and tidy before you get a house.

Looking for a house on your own will most probably be frustrating and perplexing as not all info you find on the internet may be deemed reliable or current. Make sure you schedule showings along with your own realtor anytime you find a home that looks attractive and make sure you arrive ready! Should you walk through a house and decide it is the one for you, your broker can compose a purchase contract until you leave the home. The marketplace will become more and more aggressive in the spring, and in a number of regions homes will sell in under two days!

Taking these measures to get ready for the spring home market will surely give you an edge over a number of other procrastinating sellers or buyers scrambling to determine what to do each minute. In the long term, it will probably even save or earn some excess cash, too. The spring real estate season is rapidly coming, so now’s your time to begin these measures if you are buying selling or even both!

As always, first speak with a local realtor about what homes are selling for in your area, what price you’d like to list your home for, and some specific things that may need to be addressed before listing. Contact our office to schedule an appointment with an agent today and discuss all your real estate needs.

 

4 Reasons Why You Should Buy a Ranch in 2021

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While some individuals might see that on average ranches receive anywhere from 3-20% return on investment every year and decide they should purchase their own land, others need more convincing. The estimated return on ranch investments are exceptional, but there are also several other reasons why you should buy a ranch in 2021. The four most important reasons, besides the yearly return on investment, that you should buy a ranch include appreciation, tax exemptions, freedom to develop, and an increased quality of life. These reasons are discussed and explored in further detail below!

Appreciating Real Estate

Ranch real estate properties are appreciating at staggering numbers. That is a fact, and the recent coronavirus pandemic is causing these numbers to increase even more. These days, more and more individuals are realizing that they would like to get away from the crowded cities and crammed apartments they currently live in. With this rural migration in mind, more and more people are looking to purchase a ranch. Therefore, if you were able to purchase a ranch this year, you could expect for the property’s value to increase over the next few years.

 

Check out local Ranch Listings in Texas

Tax Exemptions

In addition to being a great investment because of their appreciation estimate, ranch properties are also good investments because of the various tax exemptions you may qualify for by owning one. Most land that is used for farming or that is supporting livestock is exempt from taxes. While this may not seem like a serious benefit, the savings from these exemptions can number in the thousands. Therefore, if you are looking for land for sale, you should set your eyes on a ranch or two.

Development Freedom

Another benefit of owning a ranch is the ability to develop your land freely. Most ranch land is unrestricted and can be developed at the owner’s discretion. To make sure this is the case, you can ask your real estate agent about the deed restrictions, property restrictions, and other restrictions the ranch land you are looking at might be restricted by. Once you find out that your land is not overly restricted, you can start to envision development projects such as a horse stables, hunting blinds, or pretty much anything else you can think of.

Increased Quality of Life

Overall, all of these other benefits also lead to the greatest benefit of them all: increased quality of life. Most land buyers cite that their decision to purchase a ranch was pivotal in their search for a better life. When you buy a ranch, you get to see the benefits of the property first hand everyday. These benefits only become more reliant on your own motivations if you choose to work the ranch yourself. Owning and operating a ranch is not only a good way to see what you are made of, but also the perfect way to simplify your everyday life. You don’t just live on the ranch, you work there and get to reap the benefits of such a lifestyle.

Ranch Life

Living on a ranch is certainly not for everyone, but if you have recently been thinking about getting away from the busy city or are simply looking to change your lifestyle, ranching might be for you. Not everyone who owns a ranch, operates their ranch by farming or raising livestock. Some individuals use their ranch as a hunting camp or other type of recreation center to bring in additional profits. The benefits listed above only scratch the surface of the various benefits a ranch can provide. If you are interested you should call up your real estate agent today.

Want to take the next step in owning your own Ranch in Texas contact one of our Realtors

Article Courtesy of Skylar Ross

Waking Up Your Lawn After Winter

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Waking up your yard can be hard, and there’s additional pressure if you would like to place a house on the market. Early spring is just one of the greatest days of the year to create your house look great. This hectic period coincides with an uptick in action in the actual estate market, which makes it much more crucial that you receive your yard back in good form.

Feed it Well

Spring is the most vital time to give your yard a boost. Winter drags on in several regions of the nation, which may deplete a lawn come spring. If you end up in this circumstance, consider using a quick-release mulch to prepare your yard for spring. This mulch will reach the green and roots up your lawn in a day or two. But be careful when employing a quick-release compost, as placing too much in 1 place can kill your grass.

Other fertilizer choices include slow-release fertilizers that will nourish your yard as time passes. This type of fertilizer generally comes from granules or pellets which sit on top of the ground. They dissolve over time and supply the finest long-lasting energy alternative for lawns.

Water at the Morning

Fertilizer applications require moisture to function best. Watering your lawn in the spring might seem counter intuitive given the rain that some ponds get, but mowing your yard frequently is crucial to aid the grass grow powerful.

Ease into Mowing

Though your lawn might have grown somewhat during the winter based upon where you are, lawns need a while to ease in the spring. Short yards expose the main system, which may make a stressful situation to your bud. Think about doing a mild mow early in the summer to take the tips of the blades. Doing this will facilitate your yard back to the growing period and will help keep it looking good.

Start Fighting Weeds

Homeowners seeking to place their house on the market should fight any weeds within their yard. There are lots of weed and feed substances to help stop weeds. These combinations often consist of various fertilizers, so make sure you read the instructions so you don’t provide your yard too much. Find any problem areas in your lawn and think about implementing weed control to all those regions, too.

Seed Thin Spots

It is typical for bare spots to look after a very long winter. Instantly take care of areas of the yard which have thinned or so are completely bare. These spots may cause difficulties, not just with weed growth but also in presenting a gorgeous yard to a potential purchaser. Rake out these stains in your lawn and apply a fantastic quantity of seed.

There are several methods to help your yard return after a long winter. Mow the grass to a high setting before it’s had time to recuperate, fertilize and water the yard to improve growth, and make sure you keep weeds off by using preventative steps. Follow each of the hints listed above along with your yard will return to its former glory very quickly.

Preferred Properties of Texas

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