Author: Troy Schuricht
URL: http://www.communityfirstfinancial.com
October 8th, 2008
What Make A Good Renter?
Is a good renter someone with great credit, or large deposit or maybe high income? The approach landlords take in qualifying their renter could be changing because of the housing crisis and the large number of foreclosures.
The main objective of renting your home should be to have a qualified renter that will pay rent on time and take care of the home to some degree. Large deposits can maximize renter’s responsibilities to the care of your home, but what can be done to help minimize renter’s late pay or simple nonpayment and evictions.
The qualifying approach I encourage landlords to take is one similar to underwriting a loan. The question that everyone should ask themselves before renting their home. Can my renter make the payment on a consistent basis and how? This question is always answered by employment. There are a number of ways to increase the odds of finding a good renter just by looking at their employment.
Time on the job- The length time at the current employer is the first thing you should look at. If a potential renter has been employed for a number years this helps build a case that consistent income can help provide for timely rental payments.
Proof of income - Not only knowing where your renter works, but knowing exactly how much he makes is very important. It is not out of the question to ask for the last two paystubs and last year’s W2’s. While this may seem extreme, you have answered two critical questions. Does your renter really work and how much do they make.
Debt to Income Ratio - While pulling credit can give you an idea of credit score repayment history, how are you going to judge individuals that have gone through foreclosures and bankruptcies? Sometimes a bad borrower is a bad borrower and you need to decline them for your rental, but in today’s market place you will find more good renters with bad credit than ever before. My suggestion is to look at credit, income and employment and determined a debt to income ratio. This will illustrate whether they have sufficient income to cover their rent and debts.
This process is very similar to qualifying for a home mortgage. It is up to the landlord to develop their own guidelines as to what is acceptable to their market place. This is a very simple process to help increase the odds of a good renter - check employment, have proof of income, and determined debt ratio.
Wednesday, October 8, 2008
Five Reasons Start Investing in Real Estate Again
Just like any other financial market real estate continually cycles through its highs and lows. There can be great debate on whether the market as a whole is at its bottom, but there is a growing consensus that many markets have hit bottom and now is a great time to start investing in real estate.
Here are five fundamental reasons to start investing today.
1.Price: The sales price in almost every market has dropped substantially. When your combine the effects of short sales, foreclosures and bank owned properties with an already saturated market this makes for a real steal for those that have a good game plan and care due diligence.
2.Inventory: Inventory is at an all time high in most markets, which only contribute to the falling prices, but also helps with selection. Investors should not only look at the sale price and appraised value, but they should look very care full at the rental market in which they are selecting a home from. Some times passing on a little equity to capitalize on a strong rental market can have both short term and long term benefits, also known as cash follow.
3.Interest Rates: Current economy conditions have pushed interest rate down to historical lows. Investors that are considering long term holds will benefit the most as interest rates and inflation increase over the next few years so will the rents.
4.Seller Expectations: Most sellers including banks are now working hard than ever to move their properties. This not only translates into lower sells price, but more concessions. Sellers are now willing to pay closing cost, pay to help buy down the rate, or help pay for repairs.
5.Renters: As more and more individuals foreclose on their home the rental market will continue to increase. There are a number of individuals bought the wrong home at the wrong time for the wrong amount and that led them to be upside down on their house. Many of these home owners have and will continue simply foreclose. These new renters that have great income can and will be able to afford larger rental amounts.
Keep in mind every market has a bottom; it is up to you to do the due diligence that leads to a successful real estate transaction.
Thursday, July 24, 2008
Model Home Center Realty Agent Joins Forces with Teacher A+
Kim Pickens and Model Home Center Realty team up with Community First Financial and Teacher A Plus Home Buying Program adding more value and creating support for our teachers.
Kim's niche is working with homeowners who may be potentially over leveraged and behind on payments and have exhausted all options of keeping their home. You may possibly be facing a Foreclosure situation and may have lots of questions and don't know who to turn to. So let me help by answering those questions with a no obligation consultation in my office.I specialize in helping those clients with a Short Sale Listing. Each situation is unique. I would market your home as usual while asking the lender to take less than what is owed on your property and I wold prepare a short sale packet to submit to your lender so we can find you a buyer and be able to sell your home even if you can't afford commissions and closing costs.
We look forward to her support and advisment of teacherson short sales and other real estate transactions.
Go to www.teacheraplus.ning.com for more information.
Kim's niche is working with homeowners who may be potentially over leveraged and behind on payments and have exhausted all options of keeping their home. You may possibly be facing a Foreclosure situation and may have lots of questions and don't know who to turn to. So let me help by answering those questions with a no obligation consultation in my office.I specialize in helping those clients with a Short Sale Listing. Each situation is unique. I would market your home as usual while asking the lender to take less than what is owed on your property and I wold prepare a short sale packet to submit to your lender so we can find you a buyer and be able to sell your home even if you can't afford commissions and closing costs.
We look forward to her support and advisment of teacherson short sales and other real estate transactions.
Go to www.teacheraplus.ning.com for more information.
Friday, July 18, 2008
Teacher A+ Home Buying Program
Community First Financial, LLC is proud to announce our new home loan program that assists educators and their families with the proper education and guidance to purchasing a home.
How is this loan different?
· Visit http://www.teacheraplus.com/ and http://www.teacheraplus.ning.com/
· Only for qualified Educators and families
· Community partners to assist you
· Access to foreclosures and short sales
· Teacher A+ Home Loan Program
Low down payment options
Reduced interest rates
Discounted closing costs
What educational tools are available?
· Our unique presentation of the home buying process
· Teacher A+ lesson plan for home buying
· Free home buying seminars
· Rich Dad’s Real Estate Advantages Book
by Sharon Lechter and Garrett Sutton – Free with application and loan approval
How does this loan program help?
· Educates you on why buying a home is important
· Helps you choose the loan that is best suited for you today and the future
· Continue education in building wealth with real estate
Community First Financial, LLC understands that very few people can explain the entire home buying process along with the tools to help you with your decision.
Let us teach you the home loan process, options and real estate possibilities.Call 480-305-8905 today to get started!Visit us at http://www.teacheraplus.com/ for more information. Or email troy@cffinfo.com for more information by email.
Those that know me know I belong to a family of educators. I hold them and all teachers in high regard. Please forward this email to anyone you know in the educational field.
Troy Schuricht
Office: 480-305-8905
Toll free: 888-542-2288
7575 E Redfield Rd. Ste 235
Scottsdale, AZ 85260
How is this loan different?
· Visit http://www.teacheraplus.com/ and http://www.teacheraplus.ning.com/
· Only for qualified Educators and families
· Community partners to assist you
· Access to foreclosures and short sales
· Teacher A+ Home Loan Program
Low down payment options
Reduced interest rates
Discounted closing costs
What educational tools are available?
· Our unique presentation of the home buying process
· Teacher A+ lesson plan for home buying
· Free home buying seminars
· Rich Dad’s Real Estate Advantages Book
by Sharon Lechter and Garrett Sutton – Free with application and loan approval
How does this loan program help?
· Educates you on why buying a home is important
· Helps you choose the loan that is best suited for you today and the future
· Continue education in building wealth with real estate
Community First Financial, LLC understands that very few people can explain the entire home buying process along with the tools to help you with your decision.
Let us teach you the home loan process, options and real estate possibilities.Call 480-305-8905 today to get started!Visit us at http://www.teacheraplus.com/ for more information. Or email troy@cffinfo.com for more information by email.
Those that know me know I belong to a family of educators. I hold them and all teachers in high regard. Please forward this email to anyone you know in the educational field.
Troy Schuricht
Office: 480-305-8905
Toll free: 888-542-2288
7575 E Redfield Rd. Ste 235
Scottsdale, AZ 85260
Tuesday, January 15, 2008
The Best Real Estate News in 2008 is...
Interest Rates are at the lowest level we have all seen a long time. Purchases and Refinancing is about to become popular again.
Despite all of the recent well reported real estate related woes, I have great news for everybody. RATES ARE DOWN! And truth be told, rates are actually way down. Rates are currently better than anything we have seen in the last 3 years, and by the time you read this, they could be at an all time low for the last 10+ years!
The reason they are so good today is really difficult to pinpoint. There are really dozens of reasons, but my market advisors are saying that these low rates are influenced from the speculation that the Fed will continue to lower prime (which is a good guess).
Here are my rates on Jan 15th. These rates assume that you qualify. Qualifying has never been easier; the streamline process has reduced the documentation and time to refinance.
30 year fixed 5.375%
15 year fixed 4.875%
5 year ARM 5.175%
5 year ARM 4.75%
Please give me a call (or email) to explore if this is a good time to refinance or purcahse. Aside from the many that will refinance during this rate spike, this is a fantastic time to purchase investment property.
Troy Schuricht
7575 E Redfield Rd Suite 235Scottsdale, AZ 85260
480-305-8905 - office
troy@cffinfo.com
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!
Construction Loans? When And Why To Use Them
Why use a Construction Loan?
Building your dream home, though exciting, may present many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed. Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
A construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of the lender(s), inspectors and draw processing staff your funds are reasonable protected.
Understanding the Costs Involved
As you begin the process of building a new home, you'll want to understand the costs associated with your construction and permanent loans. You'll also need to know when the expenses occur so that you can prepare an accurate budget.
• You can begin construction with as little as a 10% down payment or 10% equity in the total cost to acquire your lot and build your new home. If you don't own your lot, the first draw of your construction loan may be used to pay off your lot. There are instances that a borrower will not be required to have any money down.
• The interest rate on your construction loan is typically tied to the Prime Rate. You will be billed monthly for interest only, and your payments will be based on the current balance of it at the current interest rate for the previous 30 days. Borrowers can build in an interest reserve account to pay the interest payment during construction.
• When you finish building your new home, we will modify your construction loan to a permanent loan of your choice. Various options for locking in your rate are available depending on the product selected.
Total Project Costs
This is the cost to complete the home and consists of soft costs, hard costs, land value, closing costs, contingency and interest reserves.
Soft costs: Permit fees, engineering fees, architectural fees and other costs associated with building the home but not directly a part of the actual construction costs. Many times the borrower has already paid some of these costs. To consider these paid items as "equity," the borrower must document the cost with a bill and a canceled check or a paid receipt.
Hard costs: The actual cost of construction covering all materials and labor associated with the building of the home. Typically the borrower will enter into a contract with a contractor to build the property. Like a purchase contract for an existing home, this contract will set forth the work to be done and the costs associated with that work. All contracts must be for a fixed price; "Cost Plus" contracts are not acceptable. To support this cost, we require a signed and dated copy of the contract along with a detailed Line Item Cost Breakdown prepared by the contractor. All contracts and budgets must be reviewed by, and contain terms acceptable, to standard lending guidelines.
Closing Costs: Costs associated with the closing of the loan (e.g., title costs, loan fees, discount fees, inspection fees, appraisals, etc.)
Contingency: In certain circumstances a reserve account will be needed to cover unforeseen cost overruns in the construction of the home. A required 5% of the hard costs will be established in the Contingency Account (Contractors may hold a reserve other than what usually required by the Lender.)
Interest Reserve: At loan closing, an account is established to pay the estimated interest costs during the construction of the home. Since the borrower is only charged interest on the amount of funds disbursed, an estimate of the average disbursed amount is made. Our construction specialists will estimate that, on average, 60% of the loan amount will be disbursed during the term of the construction period. This interest reserve account is paid up front and is held to pay the interest during the time of construction.
Building your dream home, though exciting, may present many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed. Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
A construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of the lender(s), inspectors and draw processing staff your funds are reasonable protected.
Understanding the Costs Involved
As you begin the process of building a new home, you'll want to understand the costs associated with your construction and permanent loans. You'll also need to know when the expenses occur so that you can prepare an accurate budget.
• You can begin construction with as little as a 10% down payment or 10% equity in the total cost to acquire your lot and build your new home. If you don't own your lot, the first draw of your construction loan may be used to pay off your lot. There are instances that a borrower will not be required to have any money down.
• The interest rate on your construction loan is typically tied to the Prime Rate. You will be billed monthly for interest only, and your payments will be based on the current balance of it at the current interest rate for the previous 30 days. Borrowers can build in an interest reserve account to pay the interest payment during construction.
• When you finish building your new home, we will modify your construction loan to a permanent loan of your choice. Various options for locking in your rate are available depending on the product selected.
Total Project Costs
This is the cost to complete the home and consists of soft costs, hard costs, land value, closing costs, contingency and interest reserves.
Soft costs: Permit fees, engineering fees, architectural fees and other costs associated with building the home but not directly a part of the actual construction costs. Many times the borrower has already paid some of these costs. To consider these paid items as "equity," the borrower must document the cost with a bill and a canceled check or a paid receipt.
Hard costs: The actual cost of construction covering all materials and labor associated with the building of the home. Typically the borrower will enter into a contract with a contractor to build the property. Like a purchase contract for an existing home, this contract will set forth the work to be done and the costs associated with that work. All contracts must be for a fixed price; "Cost Plus" contracts are not acceptable. To support this cost, we require a signed and dated copy of the contract along with a detailed Line Item Cost Breakdown prepared by the contractor. All contracts and budgets must be reviewed by, and contain terms acceptable, to standard lending guidelines.
Closing Costs: Costs associated with the closing of the loan (e.g., title costs, loan fees, discount fees, inspection fees, appraisals, etc.)
Contingency: In certain circumstances a reserve account will be needed to cover unforeseen cost overruns in the construction of the home. A required 5% of the hard costs will be established in the Contingency Account (Contractors may hold a reserve other than what usually required by the Lender.)
Interest Reserve: At loan closing, an account is established to pay the estimated interest costs during the construction of the home. Since the borrower is only charged interest on the amount of funds disbursed, an estimate of the average disbursed amount is made. Our construction specialists will estimate that, on average, 60% of the loan amount will be disbursed during the term of the construction period. This interest reserve account is paid up front and is held to pay the interest during the time of construction.
Troy Schuricht
7575 E Redfield Rd Suite 235Scottsdale, AZ 85260
480-305-8905 - office
click to: Google Troy Schuricht!
Tuesday, January 8, 2008
Log Home Construction Loans
The all inclusive, one-time close, Log Home Construction Loan program will insure that building your log home is a simple and rewarding experience. The log construction loan program will work hand in hand with the Log Home Company of your choice. These programs are specifically designed to provide the funding necessary for your Log Home order to be placed and also for the delivery of your Log Home to your construction site. The one-time close feature of the log construction loan, combines three loans into one, encompassing your land purchase, (if necessary), your log home and construction costs, and your choice of permanent financing, with just one closing.
- Flexible, Up-Front Funding Options. Providing deposits, up-front, to your Log Home Company in order to insure your log order placement is secure. Funding options for the logs upon delivery are also available. - Your permanent mortgage note can be in place before you ever break ground. - 100% financing. No downpayment and low to no out of pocket closing cost programs.- Owner/Builder programs and Stated Income Documentation programs.
Troy Schuricht
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!
Why use a construction Loan?
Building your dream home, though exciting, presents many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed.
Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
Construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of a lenders, inspectors and draw processing staff your construction loan funds are reasonable protected.
Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
Construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of a lenders, inspectors and draw processing staff your construction loan funds are reasonable protected.
Troy Schuricht
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!
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