March 25, 2020By Cardwell Thaxton
Real Estate Wholesaler is a profession that many people misunderstand, and for good reason. There are lots of people trying to cash in on the real estate wholesaling business but they are often fresh out of a real estate seminar or have purchased the DVD. Many people claiming to be Real Estate Wholesalers do not have very much experience and are apt to make rookie mistakes. Don’t jeopardize your portfolio and investments; make sure to do some research before selecting a wholesaler to work with, you will be surprised by the benefits of working with a professional real estate wholesaler!
An unexpected benefit of working with a real estate wholesaler in New Jersey is that the wholesaler will have analyzed the property in advance! This is an amazing benefit to you because they have already crunched the numbers. They will know the market rental rates, sales comps, closing costs for purchase and resale, rehab costs, taxes, utility costs, homeowners association fees and regulations, and insurance costs. This is an extremely important part of real estate investment; if you miss an annual fee or calculate the numbers incorrectly, then a property may not fit into your portfolio and start eating up extra funds.
Do you know of an investment-friendly bank? Another unexpected benefit of working with a real estate wholesaler in New Jersey is that they will have a large base of referrals for any aspect of your investment. They have built relationships over the years with investment-friendly banks or private lending groups, title companies, insurance companies, property management companies, and other real estate professionals. They may even have affiliate companies that can provide these services at a discounted rate. This all saves you time and money!
An unexpected benefit of working with a real estate wholesaler in New Jersey is that they have a history of moving a large volume of property and are in the know of when properties are available for purchase, usually before they hit the open market. They are able to bid and purchase the property at a price an average investor might not be able to. This allows the professional Real Estate Wholesaler to assign the property to you at a lower price than a less experienced wholesaler might be able to. Hello, savings!
Speaking of saving time and money… another unexpected benefit of working with a real estate wholesaler in New Jersey is the time and money will save! This is an extremely valuable aspect of real estate investing that is overlooked. How long are you spending trying to find available properties and researching all of the property attributes? Are you contacting the local municipality for more information about the house? Doing research at night on your home computer about these properties when you could be spending this time with your family and friends?
How much money do you want to make? An unexpected benefit of working with a real estate wholesaler in New Jersey is that they make money when you make money. They work in volume to provide you with the real estate inventory that are best fits for investment portfolios and will provide you the best bottom line in the market. Professional Real Estate Wholesalers will assign properties for much less than the weekender wholesaler who may only be working on one or two properties a month.
You will be surprised how smooth and simple the experienced Real Estate Wholesaler in New Jersey will make your future real estate investment transactions. We would love to help you explore your options.
What is owner financing? This is a type of sale where the owner finances their own buyer or becomes the bank. The owner will usually have similar terms to a bank for a buyer to qualify. They expect a downpayment, interest over a loan, and can also foreclose for non-payment. This is also a great way for a buyer to buy a home that may not have the best financial background on paper since the owners might be a little less stringent. Check out these 4 tips for selling your house with owner financing in New Jersey.
You will not have to wait long for an offer if you are willing to provide owner financing; however, you do have to take into consideration WHY they aren't using a traditional bank to obtain the financing. You must conduct all due diligence on your potential buyers to protect yourself and your investment. Make sure you require your potential buyer to fill out a loan application and investigate all the information provided, such as current employment and references. Also, conduct a background check and run a credit report. Do everything a traditional bank would do.
When you find your buyer, make sure you draw up a legal contract with all your agreed upon terms. Make sure you include loan term, down payment, interest rate, payment schedule and what happens if they default. You will also need a promissory note to be recorded in the county records of the property. This is how you prove that you are the mortgagee and you can foreclose if they default. It is extremely important that all of the words and phrases are legal, and that you do not forget an important part of the contract. A small mistake in the beginning might cost you a lot in the long run.
The whole owner financing process seems to be in favor of the buyer, who may not be able to obtain traditional financing through a regular bank, so why would an owner support this option? You will collect interest on the loan! Often times, you will make more money off the property selling it through owner financing than if you took the lump sum purchase price. You may be able to collect even more interest if you allow for a longer loan period. Also, if you change your mind after a while and do not want to continue to hold the loan, there are investors standing by ready to take over your note. Keep in mind, this will fully depend on the creditworthiness of the buyer and whether they have been making on-time payments or not.
A very important part of financing your own sale is the bookkeeping or “servicing” of your own loan. You need to keep track of all of the payments and when they were made, the real estate tax, insurance, any homeowners association fees, and anything else to do with the note. Hiring a 3rd party to take care of the loan servicing will save you a lot of time and possible errors in the future. You may also be able to accept multiple forms of payment this way to make it easier for your buyer to make the payments on time with a less likely chance of default. Having a professional note servicer will take a lot of liabilities off your hands and provide you with more free time to focus on what you enjoy.
March 23, 2020
By Cardwell Thaxton
If you own real estate, you have probably heard of the MLS. It is a members-only website that is joined by real estate agents in the area. They have a local level, a state level, and a national level. Joining this association designates the agent as a Realtor. They must pay to access this service.
Reason #6 to avoid the MLS when selling your New Jersey house is picking the wrong agent. There are so many agents to choose from, how are you supposed to know who to choose? Do you pick the person with the most ads? Or do you go with the guy your friend recommended, he just sold a house last week?
Reason #5 to avoid the MLS when selling your New Jersey house is the time on the market. The MLS, or multiple listing service, keeps track of how many days it’s been since you first listed it on the market. If your house ends up being on the market for more than 60 days, this is not a good sign to buyers. It may indicate that your house is not as desirable as other properties, or that there might be something wrong with it. There may not be anything wrong with your property, but this might stick in the back of the mind of potential buyers. Maybe you haven’t had a full price offer and are holding out. Whatever the reason, the time on market counter may work against you.
Reason #4 to avoid the MLS when selling your New Jersey house is highly qualified buyers. Sure, the MLS may bring you buyers, but a large portion of them will have to depend on financing from a bank, and some of them may not have even been pre-qualified yet. Your house for sale can be considered a pocket listing that will reach the desks of many highly qualified buyers, most of which can purchase 100% in cash.
Reason #3 to avoid the MLS when selling your New Jersey house is commission fees. When you list your house on the market, there are commission fees that are expected from the selling agent and the buying agent. This is usually 3% of the final sale price, which can add up to a large amount of money! If you are using an agent without using the MLS, you might be able to set a flat fee for less than traditional commission fees.
Reason #2 to avoid the MLS when selling your New Jersey house is an invasion of privacy. If your house is listed on the MLS, you will be expected to make your house available for showings. This means living in a constant state of clean and organized 24/7 until you move out. You may also be asked to leave your home on extremely short notice for a showing if possible, sometimes immediately, although you usually can schedule showings for 24 hours in advance. Some sellers find it’s easier if they move out of the home when they put their house on the market because of the hassle of showings, but would you want to be responsible for 2 house payments before you can guarantee the sale of your house?
Reason #1 to avoid the MLS when selling your New Jersey house is a sign in your yard. The yard sign is a standard part of a real estate agents advertising your house, but this also may mean that you may have people knocking on your door unexpectedly because they saw the sign in your yard. This is a huge inconvenience, especially because people may have stopped without an agent present, and who knows if they are qualified buyers?
Do you have unpaid property taxes in New Jersey? If so, the consequences can be very difficult to deal with. In our latest post, we will help you learn more about what’s at risk and the solutions available to you!
Depending on where you live, the size and value of your home, property taxes can become a huge burden. Once you get behind, the penalties and fees will start compounding, making it even more difficult for you to get out of the hole you are in.
The worst case scenario? You could lose your home. You will likely incur penalties, fines and interest should someone buy the tax lien on your home. When you fail to pay your property taxes, the government will put a tax lien on your property until the balance has been paid off. If the debt remains unpaid, the city will auction off the lien to the highest bidder. At this point, you must pay the bearer of the lien the back taxes, plus fees, plus penalties and plus any interest the tax lien bearer has decided to impose. If they are not paid within an agreed upon time, they have the ability to foreclose on your house and take ownership themselves. There are people that specialize in purchasing tax liens. It can be very scary if it comes to this and you have to worry about losing your home.
There are a few things you can do when you are faced with unpaid property taxes. You can pay them, have them lowered or work with a buyer who is willing to help you out of the hole you are in. Nobody wants to lose their home, especially to a complete stranger. Before your unpaid property taxes get out of hand, do everything you can to resolve the situation.
You can pay them back with the help of a loan. While this might seem like you are replacing one debt with another, having the peace of mind that you aren’t going to lose your home, sometimes makes it worth it. Keep in mind, you will also likely have fees and penalties that have been added on to your original debt. The entire amount must be paid off in order for the county to remove the lien on your property.
You can choose to reach out to the property appraiser to have your property reassessed. Examine your tax bill and the amount you have been assessed. If you feel that they have the information on your home incorrect or that the amount you are being assessed is too high in comparison to other homes in your neighborhood, you might be able to secure a lower assessed value. Getting them lowered isn’t always easy. Make sure you have accurate and up to date information about the homes that have recently sold in your area.
A great way to get away from the burdens and consequences of unpaid property taxes is to work with a buyer who will help you to resolve the lien. The team at The Cardwell Thaxton Group will help you evaluate your situation and the solutions available to you. Often times, we are able to help you take care of the lien when purchasing the home. This will allow you to sell the property and walk away unscathed. Property tax problems do not have to mean that you will lose your home. There is a way out!
First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You're thinking, "I inherited a house, what to do with this house?" Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but...
... we can help.
We’re seasoned investors in New Jersey real estate, and we're looking to buy several houses each month in New Jersey. Every month we get calls from those who have inherited a house and are looking to sell the house... so the info below are some tips to help you navigate the process.
Here’s a few important considerations to help you make the right decision:
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That's a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy New Jersey houses for cash, as-is.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our NJ investment experience can help you win.
We’ll help you determine prices for any property - if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).
When you fall behind on your mortgage payments on your New Jersey home, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in New Jersey and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in New Jersey have been lost to foreclosure, but there are many ways to avoid it.
This is usually the tool of last resort. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.
This can be a good card to play, but it may come with some unseen penalties. Basically, reaffirming the loan is an additional commitment to pay. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned.
If your mortgage qualifies, you might be able to participate in MHA. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MFA.
With MFA, your payments and/or interest rates might be lowered – even the principal balance (if your home is worth less than you owe). If you’re unemployed, you might be able to get your payments temporarily suspended or reduced.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it.
Lots of lenders routinely offer some level of assistance. You have to work hard at it, but you might be able to get your interest rate reduced or a temporary reduction in your payment.
You have to work really hard to negotiate with a bank. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term.
If you’re in need of a temporary fix and want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments back onto the primary balance of your loan. It’s all dollars and cents to them, so remind them that you need their help to give them a lot more money in the long run. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.
That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help.
If you’re behind on your payments and need to sell fast, we can help.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Bew Jersey to find solutions to foreclosure problems.
We’ll let you know how we can help.
Most of the time, lenders will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.
Is it still a buyer’s market today in the Garden State? As experts in the New Jersey real estate market, we get asked this question a lot.The answer isn't as simple as yes or no.The State of the Market for Buyers in New Jersey
Is it still a buyer’s market today in the Garden State? As experts in the New Jersey real estate market, we get asked this question a lot.
The answer isn't as simple as yes or no.
Single-family homes in great locations that are priced well have been flying off the shelves. There’s a lot of demand in the market for certain areas, while others can seem like ghost towns.
Buyers are often looking for the same thing – good neighborhoods, access to transportation, shopping, good schools, close to work, etc. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market.
But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Prices were down in certain areas of New Jersey, but seem to be rebounding as the rental market increases.
Investment properties are in demand. The massive amounts of foreign cash flooding in to invest in US real estate have impacted the New Jersey market in unique ways.
Overall, those people in a position to pay cash for properties have been picking up the good deals in the marketplace.
Lots of sellers are trying out speculative prices just to see if anyone bites, but most investors are walking away from deals that don’t pencil out.
Financing is still a major obstacle for buyers. Banks are being incredibly strict, requiring lots of money down and even changing their terms at the last minute. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was just a couple of years ago.
Overall the markets remain incredibly polarized – there is a lot of action at the very top and the very bottom, with the biggest challenges in the middle.
There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once.
We're investing in New Jersey because we believe in the community and the people here.
If you need to sell a property in New Jersey, we can help you.
We buy properties like yours from people who need to sell fast.