Discover Nashville: Then vs. Now

The town of Nashville was founded as early as 1779, but was later incorporated and officially became a city in 1806. Over 200 years later a lot had happened to Nashville, apart from just becoming the city capital of the state of Tennessee and being dubbed as the Music City. Right now, Nashville has become a very progressive city, with a balance of economic and entertainment growth. Thousands of tourists flock the city on a daily basis to witness the city’s attractions and landmarks, taste its delicious food, or experience Nashville’s world-class entertainment. Overall, they just want to experience living in one of the best places to live.

Another interesting thing to do is comparing Nashville then and now and see how things have changed the city over the past 200 years. Ashley Haugen of Style Blueprint gave us a headstart by giving us nostalgic scenes of then and now from a barely recognizable city of Nashville. Check out her article below and see how the city looked like many years before you were born.

Then & Now: Scenes From a Barely Recognizable Nashville

Any lifelong — or even long-time — Nashvillian will tell you that Music City is barely recognizable from even just a few years ago. Yes, Nashville has definitely evolved into its “It City” nickname, but what was it like before it was the cool kid on the block? Take a look — slide the dot across for a before and after of some of the city’s most recognizable landmarks — and prepare to be amazed!

NASHVILLE, THEN & NOW
Eighth Avenue & Lafayette Street

Image Source: Style Blueprint

There was no Stix sculpture — and no roundabout for that matter — at Eighth Avenue and Lafayette Street back in the early 1950s. There was, however, a fabulous RC Cola billboard! (History buffs, note the “Alamo Plaza 2 Miles” sign, and then read up here.)

100 Oaks

Long before it was purchased Vanderbilt University Medical Center took up residence there, 100 Oaks was Nashville’s second enclosed shopping destination (Harding Mall was the first) and enjoyed the title of Tennessee’s largest mall from 1968 to 1971. After closing in 1983 and a fairly rocky following three decades with various reinventions, 100 Oaks is bustling once again with both retail options on the first floor as well as Vanderbilt physicians’ offices on the second floor.

The Belcourt Theatre

From 1937 to 1966, what is today known as “the Belcourt” was called The Belcourt Playhouse. But it was open well before that, showing silent films since 1925 and featuring what was, at the time, Nashville’s largest stage. Today, the Belcourt is enjoying renewed purpose, having undergone a major renovation that was completed in 2016. Its guests flock to this Hillsboro Village fixture to see films, attend events and partake in classes and various community education opportunities. The Belcourt Theatre is located at 2102 Belcourt Ave., Nashville TN 37212.

Click here to read the rest of this post…

Those are some of the oldest pictures you can see of some of the city’s most popular attractions such as Belcourt Theatre and the iconic Hermitage Hotel. Such a fine scene to see. The hotel was constructed in 1908, 110 years later, it is still among the most luxurious hotels in Nashville.

Another outstanding article on reminiscing Nashville then and now is by E.J. Boyer of Bizjournals, narrating the 36 hours in Nashville then and now and how NY Times’ coverage shows Music City’s growth over the years. Read the story below and feel the nostalgia.

36 Hours in Nashville, Then and Now: How the NY Times’ Coverage Shows Music City’s Growth

Photo Credits: Nashville Business Journal

Oh Nashville, you sure have changed. If the construction cranes, handful of James Beard-nominated chefs and traffic headaches aren’t enough proof, you can always look to The New York Times.

“But these days, there’s much more to the Tennessee capital than country,” the paper wrote this week. “One of seven cities chosen to begin Google for Entrepreneurs Tech HubNetwork, Nashville is bustling with new business. The dynamic food scene draws an international clientele and chefs from bigger cities.”

But this isn’t the first time the paper has spent 36 hours in Nashville. In fact, before The New York Times declared Nashville the next “It City” (January 2013), the paper dared to spend a weekend here. It was November 2009: the country was still in the midst of a recession, Kanye West had just stormed the stage during Taylor Swift’s VMA acceptance speech, and Connie Britton was still driving around the dusty roads of Dillon, Texas, dreaming of making it big as a country music superstar.

Here’s what’s changed in the intervening five years, according to the Times:

Revitalizing Neighborhood

Then: East Nashville and 12South

Now: Germantown

Vintage shopping

Then: Venus and Mars, now closed, co-founded by supermodel and part-time Nashville resident Karen Elson

Now: Savant Vintage

Locally sourced restaurant of choice:

Then: Tayst, Nashville’s first “green-certified” restaurant; chef/owner Jeremy Barlow would close Tayst a year later, in fall 2012, to spend time with his family and focus on his sandwich shop, Sloco

Now: Husk, The 404 Kitchen, and Rolf and Daughters

Browse the complete list here…

At some point, it is saddening to know that some of the iconic Nashville names have gone, but those that replaced them also offered great things to the city, such as the Savant Vintage that replaced the old Venus and Mars founded by a supermodel and also a Nashville resident Karen Elson. It’s just nostalgic to see old things gone, but looking forward to the new things Music City has to offer to its locals and tourists alike.

After reading all these wonderful and nostalgic then and now comparisons of Nashville, for first-time visiting the city might be asking what is it like to live in Nashville. No need to worry a bit as Stephanie Sargent of U.S News shares what it feels like to be a local and permanent resident of Nashville.

What’s it like to live in Nashville, TN?

Image Source: Tennessean

Nashville is famous for the Grand Ole Opry, the Ryman Auditorium, aka the Mother Church of Country Music, and twangy honky-tonks, but music is just a byproduct of the larger city culture. Music City is home to a community fiercely driven by a desire to create.

Ask people what they do and it’s likely they live in the area to help build something new like a health care information technology startup, an indie progressive rock band or a festival that celebrates all things tomatoes.

This innovation positively influences the lives of residents in nearly every respect. The metro area has a blossoming job market and an exploding entertainment scene fueling an appetite (and thirst) for all things locally sourced and artisanal in craft – everything from handmade marshmallows to small batch gin.

Rankings

U.S. News analyzed 125 metro areas in the United States to find the best places to live based on quality of life and the job market in each metro area, as well as the value of living there and people’s desire to live there.

What’s the cost of living in Nashville, TN?

Nashville is relatively affordable compared to other major U.S. metro areas, though the housing market has become increasingly competitive. The area has seen an increase in its population, as well as a rise in home values. Since Tennessee is one of the few states that doesn’t tax wages, residents are able to keep more of their income, though there is a 6 percent hall tax on investment interest and dividends.

Lear more here…

The data above gives you an idea of what is like to live in Nashville, especially the cost of living. The good news is that the city is relatively affordable compared to other major U.S cities and metro areas, which is one of the reasons why Nashville is among the best cities to live. Another great thing about the city is that its housing market has become increasingly competitive, with a noticeable increase in population and rise in home values. There are lots of things in Nashville that are worth mentioning, which confirms that it is one of the best places to live.

If you’re convinced that Nashville is your next city and wanted to purchase a home, Dependable Homebuyers can help you find affordable home deals in the Nashville area. We can also help you sell your house fast and easy. To learn more, visit us at https://www.dependablehomebuyers.com/tennessee/nashville and we look forward to hearing from you.

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Property Rental Tips That Translate Into Profit

People are looking for ways to diversify their portfolio, plan for their retirement by earning passive income – and a lot of them are venturing to real estate investing for its potential to earn money while preserving their capital. There is a handful of real estate investment types that could potentially provide high rewards while minimizing the risk for investors. While there are a lot of them, the most popular and perhaps the easiest to learn and manage real estate investment is the property rentals.

Property rentals, if done right can create an ongoing income stream with very little risk. In addition, property rentals also work very well for those who are preparing for their retirement. In a nutshell, there are lots of benefits to it as a form of investment, and Paula Pant of The Balance has compiled some of the best benefits investors could achieve in property rentals.

Rental Property Return Investment Tips

More and more people are getting started in real estate investing and are looking to rental properties as a way of diversifying their investments and securing cash flow for the future.

The Benefits of Rental Properties

Rental properties can round out an investment portfolio and create an ongoing income stream. Several major factors have made this a popular investment option:
  • Many people are dissatisfied with the meager returns provided by their savings accounts and investments such as certificates of deposit, causing many people to take a closer look at rental property investing.
  • Several years of record-low interest rates have made people wary of future inflation, which drives them away from the bond market. As an alternative, people invest in commodities like real estate, which contains perceived inflation-protection.
  • Many want to diversify their investments, which means moving away from solely investing in the equities/stock market.

If you want to get into rental property investing, you need to learn how to evaluate whether or not a potential rental property is a good investment. The following two formulas will help. Learn more about the rental property benefits here…

Property rentals are seen by experts as one of the best investments and portfolio diversification strategies, much better than stocks or bonds. Renting a property also a low-risk type of investment since you can keep the ownership and continue to get income from it as long as tenants are renting the property, which in turn makes it a high reward investment instrument. However, if you plan to become a landlord, one must learn how to evaluate whether a property is actually, a good investment at the same time know how to screen good tenants fro the bad ones.

Despite the success stories of those who have been into property rentals for many years, there are still those who doubt its potential. Well, to debunked these doubts about the potential of property rentals, Paul Sydlansky wrote an article in Kiplinger.com answering the ultimate question “Is rental property a good way to grow your wealth?” Read the article below to know the answer.

Is a Rental Property the Best Way to Grow Your Wealth?

A rental real estate investment can seem like a great way to build your wealth (and maybe generate a little extra income), but how often does it really work out that way?

Owning a rental property in addition to your primary residence can be a way for you to build wealth, especially if you may be averse to investing in the stock market. Data released in 2017 shows that 47% of rentals were owned by individual investors. In theory, it seems to make sense. With a rental property, someone else pays your mortgage, and over time your equity grows. You can eventually own a physical piece of property outright that also produces income. However, rental property investments aren’t always a sure thing.

So, as you can see, things that seem too good to be true often are. So, before you decide to invest in a rental property, consider calculating the return on your investment to see if investing in a rental property is really the deal you thought.

How to Calculate the Return on Investment of a Rental Property

Like any investment, you need to understand the expected return on investment (ROI). ROI = (Net Profit/Cost of Investment) x 100. Therefore, before you purchase a rental property, ask what return is reasonable to expect on your money, and what do you need to earn in order for the investment to be worthwhile?

Calculating the ROI of a rental property can be complex. While there are many different ways to do this, the point of this exercise is to provide you with a “back of the envelope” calculation to help you quickly assess whether or not a rental property has a return potential that is worth pursuing. If your calculation reveals that the return is small on paper, it’s likely going to be small in reality, too. Read full article here…

Indeed, property rentals could be a great way to build wealth, earn passive income or build retirement funds through it. However, you need to do some research to become successful such as computing first the investment’s ROI before even starting purchasing the property (if you plan on buying a property for rental business) and posting it on different listing sites. Also, revenue does not come overnight. It also requires a tremendous amount of patience and minimizing the risks that might affect its profitability.

You need to have strategies as you start your journey into property rental investing. In case you need some help in formulating some, check out this article written by Erin Eberlin in The Balance about the effective strategies for managing property rentals. Check out the article below.

Strategies for Managing Rental Property

If a rental property is not managed correctly, it will fall into shambles. Luckily, there are several different ways to manage property to fit every landlords’ needs. You can be completely hands on, or you can decide to outsource everything. Here are three management strategies for every potential landlord to consider that will keep your property up, running and generating revenue.

3 Strategies for Managing Rental Property

Before you are able to select the right strategy for you, you need to understand all the different areas of a rental property that need to be managed. A landlord’s management responsibilities can be broken down into three sections:

1. Managing Tenants

This is the part of rental property management that is most immediate and most obvious. However, being a successful landlord involves a lot more than just collecting rent.

2. Managing Property Maintenance and Inspections

The second main part of rental property management is the property itself. The physical structure needs to be maintained for the health and safety of the tenants. Your insurance company may also require certain parts of the structure, such as the roof, to meet certain standards or they will refuse to insure the property.

Read Full Article Here

Your strategies will be the vital factor that leads you to success in property rentals. Thus, you need to formulate strategies that suit your personality, knowledge, skills and risk tolerance. You can have those strategies mentioned above as your guide, working your way through it until you formulate your own strategies.

If the purpose of you investing in rental property is for passive income and plan on managing it on your own, then you must consider these tips written by R.L. Adam in Enterpreneur.com about real estate property management tips for those entrepreneurs seeking passive income.

Property Management Tips for Entrepreneurs Seeking Passive Income From Real Estate

If you’re a landlord or just looking to make money with real estate, it’s crucial to understand how to manage a property the right way. It’s not just about knowing how to fix things when they break. As a property manager, especially as a first-time landlord, you’ll be forced to wear many hats. How you manage that property is going to either make or break your chances for success.

Entrepreneurs have become obsessed with rental property and not just long-term rentals. The rise of AirBnB, and the eager rush to convert condos and homes into short-term, transient rentals has the real estate world reeling. If you’re looking to get into the fray, heed the advice from property managers who are dominating the short-term rental game.

While short-term rentals are on a steady rise, long-term rentals have also long been a source of the Holy Grail of all income: passive income. Real estate is a prime example of one of the >best ways that we can create a passive income from a real-world asset that increases in value over time. The best part? Even if you put 15 percent or 20 percent down on a property, you still receive 100 percent of the rental income. Music to your ears, right?

Well, what’s not so obvious or straightforward is particularly how you go about managing that property. If you don’t have the time, no problem. Find a good, local property manager that can take care of all the details for you. If you have the time, and you’re just starting out, then you likely want to save the hefty fee that often comes along with property management companies that take the reigns. But, you better be prepared to put in the time, because you won’t find this easy to do.

Learn more about the different tips here…

Apart from formulating foolproof strategies, landlords must also learn how to effectively manage your property rental to maintain its good condition. How you manage your property could either make or break your success in this field. If you can’t handle the repairs on your own, you can always hire professional services to get the job done.

Investing and managing property rental is a two-bladed weapon. Its potential to earn big while preserving capital is very high, however, you need to completely minimize the risks to maximize its potential. Screen tenants thoroughly and do maintenance works as soon as the problem arises. Now if you’re already fixated on investing in property rental and you’re looking to purchase property for that purpose, then Dependable Homebuyers can help you find the best property for rentals. They are experts in finding the best home deals in Baltimore, Nashville and other areas. To learn more about them and their excellent service, visit their website https://www.dependablehomebuyers.com and get started on becoming a successful landlord.

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Foreclosure: What Are The Common Reasons And How To Avoid Them?

Foreclosure is a legal process in which the lender attempts to recover the balance of a loan from a borrower who failed to make mortgage payments, forcing the sale of the asset used as collateral for the loan. Usually, a notice of foreclosure is being sent to the borrower if they failed to pay their mortgages after 90 days, even more depending on the agreement with the lender. There are several reasons why homeowners failed to pay their balances; lost their job, sudden changes in financial situation among others.

Justin Pritchard of The Balance explained thoroughly the foreclosure process and how and why it happens. Read the article below to know more about foreclosure.

Foreclosure Explained: How and Why It Happens

Image Source: The Balance

Foreclosure is the process lenders use to take property from borrowers. By taking legal action against a borrower who has stopped making payments, lenders try to get their money back. For example, they take ownership of your house, sell it, and use the sales proceeds to pay off your home loan.

How Foreclosure Works

When you buy expensive property, such as a home, you might not have enough money to pay the entire purchase price up front. However, you can pay a portion of the price with a down payment, and borrow the rest of the money (to be repaid in future years).

Homes can cost hundreds of thousands of dollars, and most people don’t earn anywhere near that much annually. Why are lenders willing to offer such large loans? As part of the loan agreement, you agree that the property you’re buying will serve as collateral for the loan: if you stop making payments, the lender can take possession of the property in order to recover the funds they lent you.

To secure this right, the lender has a lien on your property, and to improve their chances of getting enough money, they (usually) only lend if you’ve got a good loan to value ratio.

Consequences of Foreclosure

The main problem with going through foreclosure is, of course, the fact that you will be forced out of your home. You’ll need to find another place to live, and the process is stressful (among other things) for you and your family.

Foreclosure can also be expensive. As you stop making payments, your lender will charge penalties and legal fees, and you might pay legal fees out of pocket to fight foreclosure. Any fees added to your account will increase your debt to the lender, and you might still owe money after your home is taken and sold if the sales proceeds are not sufficient (known as a deficiency). See full post here…

Foreclosure does not happen overnight. Lenders actually have the patience to wait for the borrower to pay their balance. Most of the time, their homes cost around hundreds of thousands of dollars, and a lot of homeowners don’t earn anywhere near the amount they borrowed annually. That’s why they run into lenders and part of the loan agreement is that the house serves as collateral for the loan. This means that homeowners give the lenders full authority of the house.

Chris Lee Law Firm also listed the top causes for foreclosures. Check them out for you to know the reasons why a lot of people failed to settle their mortgage obligations.

Top 7 Causes for Foreclosures

Image Source: Chris Lee Law Firm

Though the United States is recovering economically, millions still face the ultimate American nightmare: foreclosure. Regardless of income level or neighborhood, foreclosures can happen anywhere and affect anyone. The process begins when a homeowner begins missing their mortgage or loan payments and their lenders make legal moves to repossess the property to recoup lost funds.

Foreclosure Statistics

Some individuals decide to file for a Dallas bankruptcy to avoid foreclosure. However, being aware of the top 10 foreclosure pitfalls can help you avoid both situations altogether. Reasons people fall behind on their foreclosure payments include:

  • Adjustable rate loans. Many homeowners are tempted by the low payments and interest rates, but are caught off guard once the cost accelerates alongside the interest. When they are buried under unbearable debt, they are faced between filing for a Dallas bankruptcy or foreclosure.
  • Unemployment. In this shaky economic recovery, layoffs can come unexpectedly. Since most Americans don’t have enough in their savings accounts, sudden job loss can become a cause of foreclosure.
  • Credit card debt. More than half of the population has credit card debt. When the debt is uncontrollable, some people are faced between missing their credit card payments or their mortgage payment. In the end, many escape a Dallas bankruptcy only to file for foreclosure.
  • Medical expenses and illness. Medical reasons are the cause of 13 percent of foreclosures nationwide. Whether it’s the added stress of medical bills or the loss of a job due to sickness, illness plays a major role in both forecloses and the decision to file for a Dallas bankruptcy.
  • Divorce. At the end of the relationship, the heightened emotional state and legal proceedings can make it easy to ignore financial issues. Suddenly, divorced individuals realize that payments have been missed and that neither party can shoulder the bills on their own.

Click here to read the rest of this post…

And those are the most common reasons why homeowners failed to pay their mortgages on time. Higher loan rates, too much credit card debt, sudden unemployment, emergency medical expenses are very valid reasons as to why homeowners had to skip paying their mortgages on time. Doing these for the next couple of months and expect a notice from the lender reminding you to pay your overdue balance.

While there are reasons why foreclosures happen, there are also reasons for homeowners to completely avoid foreclosures, and Kieran Jackson wrote an article about this topic in BiggerPockets.

10 Reasons for Homeowners to Avoid Foreclosure

Photo Credits: Tennessean

As investors, and as real estate agents, many of us often come across homeowners that are in distress and facing foreclosure, and they just don’t know what to do. Here are ten reasons you can share with these homeowners and to why they should be proactive and put everything they can into an effort to AVOID FORECLOSURE!

1. Foreclosure Follows You – Homeowners will always have to disclose that they have had a foreclosure on any mortgage application and many job applications that they submit in the future. This can have an adverse affect on their future mortgage rates. This is a credit item that is asked about specifically in credit inquiries. There is no seven-year time limit on this item.

2. Credit Score Negative Impact – Credit scores will be lowered by 300-plus points (per loan). Along with bankruptcy, a foreclosure is one of the most devastating credit issues you can have in relation to future credit availability.

3. Ineligibility for a Government Insured Loan – The homeowner will be ineligible for a a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.

4. Possibility of Deficiency Judgment – Your lender can seek a deficiency judgment against you and collect any amount they do not recuperate at trustee sale.

5. Negative in Employment Credit Checks – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire in jeopardy.

Browse the rest of the reasons here…

Those are indeed, very important reasons why homeowners must avoid foreclosures at all cost. Sudden changes in finances, becoming unemployed among others are really distressing, but they must find ways to settle their obligations and avoid foreclosing their homes.

If you are a home buyer, you can find lots of awesome good deals in foreclosures, and Dependable Homebuyers can help you find great deals in foreclosures. To know more, visit us at https://www.dependablehomebuyers.com and we look forward to hearing from you.

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Huge Mortgage Rate Biggest Drop in Decade May Drive More Home Purchases

A lot of people can’t afford to purchase a property such as a house in straight cash. That’s why they run into lending institutions such as banks to borrow money and pay the total amount called mortgage loan. The borrower and the lender then agree to pay the total amount with interest. The property being purchased will then become the collateral property in case the borrower fails to pay the mortgage loans.

So in a nutshell, home buyers and borrowers prefer low mortgage rates for them to pay off their debt easier. However, in the past few years, home prices and mortgage rates have been on the high, which keep first time home buyers away from the housing market for quite a while now. The good news at the start of 2019 is that home mortgage rates already have the largest one week drop in 10 years. The Mortgage Leader published this great news on their website, check it out below.

Mortgage Rates Have Largest One-Week Drop in a Decade

28March MMG Weekly Recap 28MAR19

That mortgage rates had their biggest one-week drop in a decade, and that coincided with that breakout. You know we’ve been talking about how the 10-year note has seen support at 260.

Goodness, when the yield finally punched through 260, we’ve seen to 230s in the middle of the week. Pretty remarkable. And it’s something we’ve seen over and over when these barriers are broken—how bonds can really take off.

So that’s what happened this past week, so really interesting. I think you know some of the fuel to this decline in rates, and raising prices, was this economic slowdown that’s not only a concern abroad. It’s well documented what’s going on in Europe and negative yields in Germany’s 10-year bonus is yielding you know beneath zero–which is just really remarkable.

But you know some of that slowdown was even kind of showing here in the U.S. And so what was the real catalyst was that in the middle of the week Steven Moore, who’s been nominated to the Federal Reserve. He said if he gets on the Fed they’re going to vote to cut rates by 50 basis points, which is pretty remarkable, and a real departure from where the Fed was just last year.  See full post here…

Mortgage dropping to a decade low is definitely good news to those who are planning to own a house through a mortgage loan. This means that more and more people now can afford to pay the loans and own the house of their dreams. Low mortgage rates in a strong economy will drive more home buyers and investors back into real estate and housing market soon.

According to KK Howley of Housing Wire, these low mortgage rates may drive more home purchase lending to a 14-year high. Economic hangover also helps a lot in lowering mortgage rates. Read more below to learn more.

Low Mortgage Rates may Drive Home Purchase Lending to 14-Year High

Image Source: Housing Wire

The recent drop in mortgage interest rates is already having an impact on overall mortgage demand as well as the demand for refinances, but just how much could the return of low interest rates impact the market?

Quite a bit, according to new data from iEmergent.

iEmergent, a mortgage forecasting and advisory firm, is projecting a 3.9% jump in total home-loan volume this year. That puts iEmergent at the head of the forecasting pack.

Freddie Mac is expecting a gain of 1.5% for total mortgage lending, according to its March mortgage finance forecast. The Mortgage Bankers Association pegs the increase at 1%, and Fannie Mae expects a drop of about half a percentage point.

Mark Watson, iEmergent’s director of forecasting, said the difference in outlooks is due to expectations about home sales.

In fact, he’s calling for $1.2 trillion in home purchase lending this year. That would make it the best year for that category since 2005. And the reason? Low interest rates.

“We think the lower mortgage rates will create a huge push, partly from Millennial buyers, that’s going to support strong growth in home sales over the next several years,” Watson said in an interview.

The decline in mortgage rates this year is due to two factors, said Watson. One is Brexit, Britain’s stalled efforts to leave the European Union. British government missteps have caused a “flight to safety” among international investors that increased demand for U.S. dollar-denominated bonds, which translated into lower rates for homebuyers, said Watson. Click here to read the rest of this post…

As mentioned earlier, low mortgage rates drive more home buyers as well as investors back into the housing market. Also, this recent drop in the mortgage rates also having a huge impact on the overall mortgage demand as well as the demand for refinancing. First-time home buyers also benefited well from this rate drop, and we do hope that this is sustainable and will last for the next couple of months and years.

If you’re subscribing to a mortgage loan for the first time and is looking to purchase a house, you can actually take advantage of this current market conditions. Gene Walden of Thrivent Mutual Funds gives us some of the best ways to take advantage of today’s low mortgage interest rates. Check them out below.

10 Ways to Take Advantage of Today’s Low Interest Rates

Image Source: Thrivent Mutual Funds

Earning a decent return on your savings may be particularly difficult in today’s low interest rate environment. However, it may be an ideal time for you to turn the tables and actually take advantage of the historically low rates by making some changes in your financial situation. (See: Where to Find Income in History’s Lowest-Yielding Bond Market)

Here are 10 steps consumers may wish to consider to save money on their loans, lower their monthly payment burden, refocus their investment strategy, or improve their lifestyle or their business:

1. Refinance your mortgage

If you bought a home several years ago while interest rates were higher, you may be able to cut back significantly on your monthly mortgage payment by obtaining a new mortgage with a lower rate.

The average 30-year fixed mortgage rate has been about 4.5% in recent months, according to the Federal Reserve1. Please keep in mind that the interest rate you qualify for may vary according to your credit rating. If your current mortgage is around 6% or higher, you may be able to gain significant savings by refinancing – particularly if you plan to stay in the home for many years to come.

While any monthly savings would seem welcome, it is important to point out that the comparison is not exactly apples to apples. Homeowners with a 30-year mortgage who have been in the home for a few years often refinance with a new 30-year mortgage. That may help reduce your monthly mortgage payment, but it would add back those years you’ve already paid, resetting your pay-off date back to 30 years again.

However, if you continue to make the same monthly payments as before – using your interest rate savings to go toward the principle – you should be able to pay off the mortgage years sooner than you would have with the original mortgage with the higher interest rate.

2. Buy a home

Although home prices have been rising in many parts of the country, the current environment may be a good time to buy your first home or upgrade to another home that better suits your needs.

3. Choose a fixed rate mortgage

If you are considering buying a home, you might consider choosing a fixed rate mortgage over a lower interest adjustable mortgage, particularly if you plan to live in the home for many years. According to Freddie Mac (the Federal Home Loan Mortgage Corporation), the average rate on 5-year adjustable mortgages was 3.61% as of April 2018.4 While an adjustable rate mortgage may save you some money on your mortgage payment in the short-term, if interest rates begin to move up in the future, your rate will rise along with the market and, possibly, balloon. But with a fixed rate mortgage, your rate is locked in for the entire pay-off period.

Browse the entire list here…

With mortgage interest rates on a 10-year low, it is indeed the time for home buyers as well as for investors to take advantage of this buying opportunity in the housing market. This is the perfect opportunity to get yourself into mortgage loan since the interest rates are much lower and these rates are also locked in for the entire pay-off period. No need to worry if the interest rates will increase later.

If you find this latest mortgage interest rates attractive and wanted to purchase a new house, we at Dependable Homebuyers can help you find houses according to your budget, especially in Baltimore and Nashville area. To learn more about us, visit https://www.dependablehomebuyers.com.

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House Flipping Tips For A Successful Real Estate Investing

There are lots of ways to make money in real estate like property rentals and leasing to tenants, to home selling. While these real estate investments are profitable and only require minimal supervision, first-time and seasoned real estate investors are gearing towards house flipping primarily because of its overflowing potential to earn money in a relatively short period – especially if you’re doing it the right way.

If this is your first time in house flipping, check out this article written by Margaret Heidenry in Realtor.com about doing house flipping the right way for both first-time and seasoned investors in the housing market. Read the article below to know more about house flipping.

Flipping a House? How to Flip a House the Right Way

Wondering how to flip a house? In real estate, flipping houses has become all the more popular thanks to TV shows such as HGTV’s “Flip or Flop” and “Masters of Flip.” The goal is to buy a run-down home, put money into renovations, list it on the real estate market—and profit, big-time! For real estate investors, flipping houses may have hit its peak in the bubble years leading up to the 2007 housing market crash, but this is one dream that definitely hasn’t died. Many investors are still making money. However, just because you’ve watched a lot of HGTV shows doesn’t mean that you know how to flip a house for a profit.

How to flip a house in real estate to make money

“Stick with the age-old adage of buying the cheapest property in the nicest neighborhood,” says Eric Workman, senior vice president of marketing at Chicago-based Renovo Financial, a private lender specializing in the real estate house-flipping space. But don’t pick just any old shack—look for a home with  “good bones,” Workman says.

Translation: Look for a property that’s structurally sound and has a decent roof, newer windows, and an HVAC system that’s less than 10 years old, as well as modern electrical and plumbing.

Next, an ideal flip should need only cosmetic changes such as new cabinets, countertops, flooring, and paint. Any other renovations will be more costly and cut into your profit on the property.

How much should you pay for a house you’ll flip?

Investors should set a goal of making a 10% to 20% return on their investment. So how do you crunch the numbers? For starters, find out what your fixer-upper will sell for once you’re done with it by looking at the sales price for similarly sized real estate in the same neighborhood that are move-in ready, says broker Bobby Curtis at Living Room Realty in Portland, OR.

As for financing a flip, it isn’t that different from buying a regular home. You’ll either pay cash or take out a mortgage—just consider going for a 10- or 15-year mortgage, which will offer a lower rate. If you’re right on the money, odds are you won’t own this house for long anyway. Read full article here…

House flipping is a type of real estate investment where the investor buys a house and then selling it again for a profit. In a nutshell, an investor applies renovations to certain parts of the house to increase its market value. However, while it is true that applying renovations or improvements do increase the house’s market value, the cost of renovation might end up higher than the estimated profit you could get from selling the house later. A rule of thumb in house flipping is that look for a property to flip that’s in good condition structurally with intact roofing with intact electrical and plumbing, etc.

Now that you know the basics of house flipping and wanted to do it as a career or as a primary money-making investment, you need to know not just the fundamental principles, but also the most essential toolkit you must have to become successful in house flipping business. To know more about these toolkits, check out this article written by Meredith Wood at Fundera.

How to Start a House-Flipping Business: Your Essential Toolkit

Shows including “Flip or Flop” and “Flipping Out” have a firm hold on U.S. television sets, and house-flipping is at a six-year high. There’s no wonder, then, that more people than ever are interested in how to start a house-flipping business. For enterprising investors who aren’t afraid of hard work, flipping a house is an exciting opportunity for short-term investment. But there’s a lot of research to be done, plus financing and resources you need before you start a house-flipping business yourself.

If you’re one of those enterprising investors who wants in, you’ll need to know more about how to start a house-flipping business. Follow this guide to help you develop a business strategy, plus determine and execute the optimal financing plan. To get started, watch this video for some tips from a pro real estate investor and house flipper:

Before You Start a House-Flipping Business

Before you can start a house-flipping business, of course, you need to learn as much as possible about the industry—and your own finances, too. Here’s where to begin:

Assess your skill level.

Identify the location for your short-term property investment, and what kind of renovations make sense with your available capital and knowledge. Depending on your experience, determine what kind of building and extent of renovation you’re equipped to oversee.

Get a pulse on the real estate market you want to flip in.

Scout property opportunities in your network or local market first. If you’re interested in investing in an unfamiliar area, talk to local homeowners and real estate investors to supplement your research.  Here, knowledge is everything.

Learn more here…

Starting a house flipping business is extremely difficult especially if you don’t have any idea what you are doing. You might end up losing money instead of earning profits from flipping houses. Apart from learning the real estate industry, you also need to learn your finances on how you are going to acquire the property; whether you pay it in cash or through a mortgage. You also need to assess your knowledge and skills for these will determine your flipping success. Lastly, you need to get to know the latest real estate market trends you want to flip in. Do advanced scouting, visit the area, etc. for you to know the current condition of the market.

Failing to have the toolkit and house flipping mindset will just lead you to lose money than earning, and there are lots of horror stories of those who lose huge amounts of money by simply not preparing. On the other side, there are stories from people who achieved huge success in flipping houses. Gabrielle Olya of Go Banking Rates shares real-life house-flipping success stories that can influence and inspire other aspiring investors.

Real Life House-Flipping Success Stories — and How To Do It Yourself

House flipping shows are all over HGTV, where you can see pros with entire teams flip homes using seemingly unlimited resources to turn huge profits. But you don’t need a TV crew and an on-camera personality to be a successful house flipper.

GOBankingRates spoke to four flippers, many of whom have turned six-figure profits on their investments. See their incredible before and after home transformations, and find out their best tips for how to start flipping houses yourself.

He Used Online Marketing To Find His Flip

Brian Rudderow, CEO and owner of HBR Colorado, has successfully flipped homes throughout Colorado.

“I use online marketing and search engine optimization to drive leads to my own personal website,” he said of how he finds his flips.

One of his most successful flips was a Colorado Springs home he purchased for $75,000.

“It was in a great neighborhood where the real estate values were skyrocketing,” said Rudderow.

How He Flipped It

Rudderow invested $60,000 to make a full renovation of the home that included new siding, a new roof, a new deck, new flooring and a new kitchen. He also finished the basement and remodeled the bathroom. Thanks to his improvements and an eye for finding a home with resale potential, Rudderow was able to sell the home for $249,900.

Profit made: $114,900

Read more house flipping success stories here…

Those are some of the success stories of real people who found huge success in housing flipping. However, their success did not come overnight. These people experienced lots of failures, losing money in the process. The most important thing is that they learned from these mistakes, turning them into motivation to learn how house flipping works and how the expert do it.

Becoming successful in this type of real estate investment starts with the right mindset and being eager to learn at the same time taking a huge risk of losing your capital. If you think you’re ready to become house flipper and looking for the first house to flip, Dependable Homebuyers can help you find the best home deals for house flipping. To know more, visit them at https://www.dependablehomebuyers.com and let them help with you in finding the best home deals on the market.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

 

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Best Home Selling Tips For First-Time Sellers

Putting your hard-earned money into real estate investing is encouraging and tempting as a lot of people has earned huge of amount of profits from investing into properties. For those who are new to investing, it is actually the easiest to understand investment type as compared to stocks or bonds for its concept, in general, is relatively simple and straightforward: it only involves the exchange between the property owner and the buyer at an agreed price.

While it’s true that its flow is as simple as mentioned above, real estate investing is actually a complex concept. There are actually lots of investment types in real estate that require different knowledge and expertise. Well if you want to learn the basics of real estate investing, Joshua Kennon of The Balance wrote an article about real estate investing guide for new investors. He wants to help young investors to become knowledgeable on how real estate market works.

Real Estate Investing for Novices

Simply stated, when investing in real estate, the goal is to put money to work today and allow it to increase so that you have more money in the future. The profit, or “return,” you make on your real estate investments must be enough to cover the risk you take, taxes you pay, and the costs of owning the real estate investment such as utilities, regular maintenance, and insurance.

Real estate investing really can be as conceptually simple as playing monopoly when you understand the basic factors of the investment, economics, and risk. To win, you buy properties, avoid bankruptcy, and generate rent so that you can buy even more properties. However, keep in mind that “simple” doesn’t mean “easy.” If you make a mistake, consequences can range from minor inconveniences to major disasters. You could even find yourself broke or worse.

The 4 Ways Real Estate Investors Make Money

Image Source: The Balance

When you invest in real estate, there are several ways you can make money:

1. Real Estate Appreciation

It is when the property increases in value due to a change in the real estate market, the land around your property becoming scarcer or busier like when a major shopping center is built next door or upgrades you put into your real estate investment to make it more attractive to potential buyers or renters. Real estate appreciation is a tricky game. It is riskier than investing for cash flow income.

2. Cash Flow Income
This type of real estate investment focuses on buying a real estate property, such as an apartment building, and operating it, so you collect a stream of cash from rent, which is the money a tenant pays you to use your property for a specific amount of time. Cash flow income can be generated from well-run storage units, car washes, apartment buildings, office buildings, rental houses, and more.

3. Real Estate Related Income
It is income generated by “specialists” in the real estate industry such as real estate brokers, who make money through commissions from buying and selling a property, or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property. This type of real estate related income is easy to understand. For example, a hotel management company gets to keep 5 percent of a hotel’s sales for taking care of the day-to-day operations such as hiring maids, running the front desk, mowing the lawn, and washing the towels.

4. Ancillary Real Estate Investment Income
For some real estate investments, this can be a huge source of profit. Ancillary real estate investment income includes things like vending machines in office buildings or laundry facilities in low-rent apartments. In effect, they serve as mini-businesses within a bigger real estate investment, letting you make money from a semi-captive collection of customers.

See full post here…

Knowing the basics of real estate investing is very important to minimize the risks, save time and earn profit from your investment. As a matter of fact, don’t start putting your hard-earned money into any property yet until you have completely learned enough the basics and advanced concepts of investing.

Over the years, there was a common misconception, a lot of people were actually thinking that real estate investing is only for the rich. Times has changed, real estate investing is no longer just for the rich. Whether you are rich, middle class or low-income earner, you are given equal opportunity to invest in real estate. But it is done? Erik Krattenstein wrote an article in AssetRover explaining that real estate investing is no longer just for the wealthy.

Real Estate Investing: No Longer Just for the Wealthy

Image Source: AssetRover

Real estate investing is on the rise. Middle class entrepreneurs are finding opportunities to boost their income by investing in fix and flip (or fix and hold) real estate investments at an exciting rate.

What exactly is a flip?

Thanks to the success of several primetime television shows and the rebound of the US housing market, house flipping is on the mind of new and experienced real estate investors alike. These savvy investors find a distressed property that can be purchased at a discount, 26% below market value on average, with the goal of renovating the property and selling it for a profit or holding it for rental income.

Smaller investors are making money…

According to RealtyTrac’s 2015 US Home Flipping Report, residential property flipping is the most popular it has been since 2007; counting over 110,000 active flippers. Out of those 110,000 flippers last year, the average number of flips per investor was just 1.6–the lowest it has been in 8 years–a strong indicator that smaller investors are entering the market.
[bctt tweet=”Residential property flipping is the most popular it has been since 2007.”]
Why the rise in new real estate investors? Quite simply, they are making money. According to the research, the average finished flip was appraised at 5% above market value and sold for an average gross profit of $55,000 if it wasn’t held long term for rental income.

But where do they get their money?

The name of the game here is leverage. By bringing in a lender or equity partner, investors are able to fund these investments with just a fraction of the cash coming out of their own pockets.

Conventional Financing

The first source of funding beginner investors try is their local neighborhood bank. Banks tend to offer lower interest rates than the alternatives, and some investors feel more comfortable using a federal institution. However, investors that are not exceptionally healthy with an outstanding profile have trouble getting the financing they need from banks for a few reasons.

First, institutional financing is almost impossible to obtain with a mediocre credit score and not a great deal of liquidity. Perhaps even more importantly, bank loans take time that investors usually do not have. Time is money when it comes to real estate investing, and a delay in funding almost always means the inability to snatch up that perfect listing and a missed opportunity.

Click here to read the rest of this post…

Now that everyone regardless of income status can venture into real estate investing, it all boils to down to the skills and decision making that will lead you to earn huge profits. As the saying goes, you have the edge if you have the right knowledge and skills. For starters, it’s actually not bad to mimic the habits of those who have been very successful private real estate investors.

Monevator has compiled the 7 habits of highly successful private investors in the real estate market that you can actually follow and serve as inspiration.

The Seven Habits of Highly Successful Private Investors

Image Source: The Balance

One of my favourite investing books is Free Capital. It profiles a dozen successful private investors, with insights into their lifestyles as well as their methods.

Free Capital is unusual in focussing on UK investors. Most investing books are about Americans. At a time when you’re more likely to meet someone in the pub who’d rather smash the system than buy shares in it, it’s nice to know you’re not the only optimistic nutter in the asylum.

All the investors profiled live off their money. They are free to invest their capital how they like, but they are also free to take the day off to go to the zoo and see the monkeys. They need never do another day in the office, unless they want to.

Given that many people live paycheque-to-paycheque, are wilfully ignorant about managing their money, shun shares, and save little towards their retirement, this drive to achieve financial freedom through the stock market is far less common than it might seem to the typical Monevator reader.

DIY private investors

What else do the private investors in Free Capital have in common?

Most obviously: They made it.

The book’s author didn’t interview a dozen people who failed to invest their way to millions. Survivorship bias looms large.1

This is especially important here, because all the ‘free capitalists’ profiled are active investors, and the academic evidence is clear. Most active share traders will fail to beat the market, and would do better in index funds.

Were the stock pickers in Free Capital skilful or lucky to end up on the right side of the bell curve of returns? Let’s leave that for another day.

In this post I want to focus on the lifestyle choices that enabled them to amass their wealth, which are equally important.

Earning returns of 20% a year makes achieving financial freedom quicker and likelier, no doubt. But without the habit of socking away cash and risking the market’s ups and downs, you’ve got no chance, whether you’re in passive funds or Bolivian small caps. Learn more here…

Those habits are very easy to master and follow if you have the dedication to learn from the most successful people in real estate investing. Regardless of where you are going to invest; like buying or selling a house in Baltimore, these habits, tips, and knowledge in investing real estate properties; whether it is residential, commercial or industrial properties – it applies. Through reading, researching and lots of practice, it is only a matter of time before you can earn money from your investment.

With the current trend of real estate investing in Baltimore currently bullish, there is a strong chance of earning by riding the trend. Now if you need money to start investing and want to sell your house fast in Baltimore, Dependable Homebuyers can help you in selling your property to the right buyer. Want to learn how? visit https://www.dependablehomebuyers.com and get started.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

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Home-Price Gains In The Month of July Slows Down, Making It The Second-Smallest in 4 Years

The housing market has suffered huge blows in the entire 2019 characterized by slow-paced growth, high-interest rates, rising home prices, among others – and the month of July is not spared from it. The numbers are in for the real estate market, and the home-price gains for July do not look good as well, despite its rising few numbers.

Alcynna Lloyd of Housing Wire wrote an article on this latest housing market news, saying that the home-price gains for July were the second-smallest growth in the past 4 years. Read the article below to know more about the recent home-price gains.

FHFA: Home-price gains in July were second-smallest in 4 years

Single-family house prices rose 5% in July from a year earlier, according to the Federal Housing Finance Agency. It was the second-smallest annual gain in more than four years, following June’s 4.9% pace.

The FHFA’s House Price Index is calculated using data from mortgages backed by Fannie Mae and Freddie Mac. Because of this, it excludes high-end homes bought with jumbo loans or cash sales.

The 12-month price changes were all positive in the nation’s nine Census divisions, with the Middle Atlantic posting the smallest gain of 3.6%, and the Mountain region leading the way with a 7.6% increase.

Measured from a month earlier, the Mountain division saw the strongest growth, increasing 1.2%. The Middle Atlantic Division has the smallest gain, at 0.1%.

Read full article here

As mentioned,, it was the second-smallest annual gain specifically for single-family home prices, reaching 5% in the month of July, following the 4.9% pace in the month of June. While growth like this are good news in the short term, let’s not forget that the bigger picture dictates that annual gains for home-price is still very slow.

This latest development in the housing market was also affirmed by Jacob Passy in his article published in Market Watch, saying that despite home-price going up for the entire country, there was a certain US city where home-price actually fell. Read the article below to know what city it is.

Home-price growth slowed to a crawl in July, but prices actually fell in one U.S. city

The numbers: The pace of home-price appreciation across much of the U.S. continued to peter out in July, according to a major price barometer.

The S&P CoreLogic Case-Shiller 20-city price index remained the same in July on a monthly basis after seasonal adjustments.

On an annual basis, the index only increased 2% from July 2018, down from 2.1% the month prior. This represents the slowest rate of home-price appreciation since 2012.

What happened: Between June and July, home prices rose only in 14 of the 20 large cities that the Case-Shiller index tracks, and most of these increases were relatively small.

Phoenix and Las Vegas continued to experience the most pronounced home-price growth of these cities over the past year, with increases of 5.8% and 4.7% respectively. Charlotte sped past Tampa for the No. 3 spot, with home-price appreciation of 4.6%.

“The geographic flip-flop of home-price growth has cemented itself strongly across the country,” Ralph B. McLaughlin, deputy chief economist and executive of research and insights for CoreLogic said. “Pacific markets are now making up a majority of housing markets with the lowest price growth, while second-tier markets in the South and Midwest continue to lead the country. This is a result of years of unprecedented yet unsustainable growth along the West Coast combined with stubbornly solid economic growth that is benefitting areas initially left out of the recovery from the Great Recession.”

Seattle continued to be the only city where home prices have fallen over the past year, but the rate of home-price declines has slowed.

Read entire article here

As mentioned above, only the city of Seattle where home prices have fallen significantly over the past year. However, looking at the bigger picture, the rate of home-price decline of the city has slowed. In addition, the geographic flip-flop of home-price growth has cemented itself strongly across the country, which is actually a very good sign for the real estate market.

We all know that getting into real estate market requires timing. Now, given the data above, is it the right time to start buying a house? To help us in answering this very important question, let’s check out this article written by Andra Chantim Good Housekeeping about the best time to buy a house according to real estate experts. Read the article below to know the answer to our question.

This Is the Best Time to Buy a House, According to Real Estate Experts

No matter how many times you’ve done it, purchasing a new home can be intimidating, stressful, and of course, incredibly exciting. Before you jump online and start drooling over wraparound porches, come up with a game plan. In addition to the advantages you’ll gain from finding the right realtor and researching your local market, figuring out the best time to buy a house can really pay off, whether that’s in the form of savings or a property in your ideal neighborhood.

If you want the most choices, buy a house in the spring or summer.

February and March is when you’ll first start to see an uptick in new listings online, says Skylar Olsen, director of economic research for Zillow. Sellers of single-family homes tend to be parents, and they often put their homes on the market in the spring with the goal of moving out before school starts back up. Around the same time, potential buyers are house-hunting, as they prefer to be out and about when the weather is warm, says Nadia Evangelou, a research economist for the National Association of Realtors. The combination of these two factors results in a period of about five months — March through July — when a buyer will have the largest selection of new listings on the market, but the most competition. Olsen sees the largest amount of homes being sold at list price or above during March, April and May, while Evangelou identifies June as the peak month for home-selling activity.

If you’re looking for a deal, buy a house in the winter.

Since most prospective buyers would rather casually scroll through online listings in PJs than go open-house hopping in puffy coats, winter is considered the off-season in the real estate world. Sellers strategically wait to list their homes during a period when they will generate the most interest, which is a big reason why there’s less inventory on the market during the colder months. So while you may not be spoiled for choice, you’ll have less competition for the houses that are up for sale at this time, which were either left over from the spring/summer or newly listed for any number of unique reasons. “Owners who list their homes during the off-season may be dealing with a time-sensitive situation (like relocation for a new job) that requires them to sell their properties as soon as possible,” says Olsen. Read the entire article here…

As mentioned above, real estate experts think that buying a new house can be exciting at the same time intimidating experience, especially for first-time homebuyers. The experts also think that if you are looking for more choices, the best time to buy a house is during Spring (February or March) where you’ll see an increase in home listings online. On the other hand, if you’re the type who’s looking for the best deals, then the best time to enter the market is during the winter.

Now you have your ultimate guide as to whether to buy a house not, the decision is all yours now. If you’re finished weighing in your options and looking for some help with the experts in home buying or selling, Dependable Homebuyers can help you find your way in the housing market. To learn more, visit our website at https://www.dependablehomebuyers.com/

 

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