Depersonalize 

Clean, Clean, Clean 

Update Old and Deteriorating Spaces 

Define Spaces 

Fill Empty Rooms 

Lighten Up Spaces 

Open up Indoor Walkways 

Clean out Closets and leave them one-third empty 

Curb and hallway appeal really count

 Be model-ready

Make a commitment to refuse to get more stuff.  It will take a while to reduce your belongings and it’s going to take a few months of refusing to get new things before you change your habits. 

Most people around you will not be doing this and may react negatively or defensively.  Whatever you do Stick to It! 

From “Overstuffed” workshop – Nicole Lynskey: 

Assess the impact your clutter has on you.  Think of the size of your home, how much you spend on new stuff, the energy put into acquiring, maintaining and storing your stuff and the time you spending searching for things.

Get in touch with what you really long for in life.  Do you really want to work part time?  Would changing your purchase habits or moving into a smaller space make these things possible for you? 

Start with small areas.  The more you declutter the more momentum you will get and the more you will notice things you don’t really need.

A tangible, cash-generating asset and appreciates in value.  Real estate investment has proven to be a powerful method of accumulating wealth over time and investors are getting a return on their investment in three ways, cash flow, return on taxes and appreciation. 

What are the benefits?

The main benefit is the profit that you can make if you handle your investment correctly.  Rental property provides a source of income, but other than that, investment properties qualify for numerous tax deductions which may include cost of building maintenance and repairs and interest paid on loans related to the property. 

Are you looking to Rent or Flip?

If you choose to hold and rent it, take into consideration the responsibility it takes to be a landlord.  You will need a lease agreement specifying what you will be responsible for maintaining, fixing, etc. and the rent, date of payment and length from the tenant.  It can turn into a very profitable venture if you make sure you are well versed in property management.  While you can self-manage, it may be wise to outsource this to a local experienced property management company. 

If you choose to flip you must take into account any and all property updates and repairs that need to be made.  Flipping a home can be considered less of a responsibility than becoming a landlord, but keep in mind that someone will be living in the home you are flipping and you want to make sure they will find it worth their money to purchase.  Keep in mind that flipping may not be the wise choice in a down housing market. 

How are your Finances? 

The better your credit, the more likely you will be able to get a decent loan.  It is also important to have a cash reserve left over to put towards unexpected vacancies, maintenance and repairs.  Typically lenders require 20% down on an investor loan. 

Additional considerations!

Location, Location, Location – make sure it is in an area where you can attract tenants.  Selling a home in a great location usually means a shorter hold time and likely a greater return.

Timeline and budget.  Having a reasonable, realistic timeline and budget for repairs will prepare you for success and stick to the guidelines you set.

Do not Over Improve!  This is not your personal residence.  Only make improvements that will either make it more attractive to sell/rent. 

As a seasoned Investor myself, please feel free to contact me to help you decide if you want to become a Real Estate Investor.

Substantial Improvement was given to Bank of America, Ocwen Loan Servicing, Wells Fargo and JP Morgan Chase.  Of those four, three – Bank of America, JPMorgan Chase and Wells Fargo – Treasury is withholding all future financial incentives until they make specific improvements.  Should they fail to correct identified problems in a “reasonable time”, it may permanently reduce their financial incentives.  As problems are remedied, incentive payments will resume.  

Moderate Improvement was given to the remaining six servicers – American Home Mortgage Servicing, CitiMortgage, GMAC Mortgage, Litton Loan Servicing, OneWest, and Select Portfolio Servicing.  These firms could have incentives withheld in the future if they fail to make certain improvements. 

All withholdings apply only to incentives owed to servicers for their participation in the federal program.  Incentives slated to go to homeowners or investors will still be paid through the servicer. 

No servicer has been identified as needing only Minor Improvement. 

Servicers are paid $1,000 for every permanent modification made under HAMP.  “Pay for Success” incentives are then awarded to servicers annually for three years as long as the borrower stays current.  HAMP participation is voluntary and Treasury doesn’t have the authority to impose fines like a regulator could, they’re using the tools they have to push servicers to take remedial actions when they are not in compliance with program guidelines. 

According to the report, there are currently 608,000 permanent HAMP modifications in active status.  Servicers converted 29,000 trial modifications to permanent during the month of April and started another 29,000 trial plans during the month.  The average length of the trial period has been 3.5 months and 70% of those have been converted to permanent modifications. 

The median payment reduction amount permanent modifications is 37%, or more than $500 a month, and they say re-defaults have been “lower than anyone expected.” 

Excerpts from this article from DSnews.com by Carrie Bay 6/9/11

Before making any major decisions, homeowners should consult with financial and legal professionals, including accountants, real estate attorneys and financial advisors.  Any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes, contract law, credit scores, ability to borrow in the future, potential for lawsuits and much more.

Late spring/Early Summer

Prune spring-flowering shrubs and trees which flower before July 1 immediately after the flowers fade. 

Midsummer

Several deciduous trees produce a heavy sap flow in early spring.  Pruning braches in this season won’t kill the tree, but the sap flow can bleed on to outdoor furnishings, patios, cars and walkways.  Avoid a sticky situation by pruning these trees in midsummer.  

Fall/Early Winter

Spring and Summer blooming hawthorns and viburnums are typically grown for their fruits, which attract wildlife.  Don’t prune these plants after flowering.  Allow fruits to mature and then prune plants after wildlife consume fruits. 

Winter/Early Spring

Prune summer blooming trees and shrubs in winter or early spring, before new growth emerges. 

Tips for Pruning

Keep cutting surfaces clean and sharp.  Keep metal parts of pruning tools oiled regularly to prevent rust.  Use pruning tools for pruning only, other materials can dull or damage the blades. 

No matter what kind of plant you’re pruning, you will use three basic techniques. 

Pinching is typically done by hand, using thumb and forefinger.  It’s a good method to increase bushiness and curtail and control plant size. 

Thinning involves removing branches back to the trunk, a main branch or the soil line.  With thinning cuts, don’t remove the branch collar (the wrinkled area near the trunk or main branch).  This area contains the cells needed to heal the cutting wound.  Slicing in the branch collar creates an opening for infection and disease to enter. 

Heading back shortens branches to a healthy bud or lateral branch.  Place cuts roughly ¼ inch above the bud or branch. 

This article is excerpted from Lowe’s Creative Ideas magazine.

2)      Use Common Real Estate Logic – Too many people focus on price alone.  You need to keep in mind sub-par locations, poor lighting, terrible views, below average school district, high crime rates and other negatives that may be another reason why a home went into foreclosure.  You should always try to find out how long the home has been empty; the longer it has, the more of chance it may not be a good deal.  Also, if there are other foreclosures nearby, that may be a reason for concern. 

3)      Rethink or Skip the Flip – Even if the house looks like a great flipping opportunity, beware unless you are a pro, with incredible contractor connections.  You may want to triple the amount you think you will be spending to fix up the home.  Sometimes the temptation to make fast money doesn’t always pan out, so think it through and speak to a real estate professional and contractors. 

4)      Go over the Budget – A fixer-upper means nothing if you can’t afford to fix it up.  Make sure you have an ample budget to do all of the repairs needed. 

5)      See the house in person – You should never buy a house without going in person to see it.

As with many investments, the best time to get in is when most others are sitting on the sidelines. 

Mortgage rates are at a 40 year low, and homes in many areas are ultra-cheap.  Meanwhile, demand for rentals has risen in more than 500 cities.  With this increase, it has allowed landlords to charge more.  Hotpads.com, a real estate research firm, reports that rents nationwide jumped 11.6% in 2010 to $1,320 a month. 

You’ll need that rental income to tide you over until home prices bounce back; in fact, the typical investor today plans to hold for 10 years, according to a survey by the National Association of Realtors.  If you can hang on that long, you have got a good shot at solid gains, especially if you are financing the home. 

When the rebound arrives, desirable zip codes will see price jumps first.  Real estate is always local.  

Here are a few things to start watching in your neighborhood: 

How fast are homes selling?  It is a good sign when price drops slowly down, inventory levels are actually a better gauge of where your market is headed.  Ask a Realtor to tell you the number of listings now on the market in your area and the number of homes sold over the past year.  An example would be that there are 100 listings and there were 240 sales last year, or an average of 20 per month.  That equals a five-month supply, which is considered stable.  More than six months and it’s a buyer’s market; less than three and sellers probably have the upper hand. 

Compare your neighborhood’s price-to-rent ratio with what it was before the housing boom.  Calculate the price-to-rent ratio, or the price of a home divided by one year’s rent on a comparable one.  In general, it’s cheaper to buy when the price-to-rent ratio is below 15. 

A decrease in foreclosure filing is often an encouraging sign but not always the case depending on the processing delays in foreclosures.   Distressed owners tend to fall behind on lawn cutting and house painting long before a foreclosure.  If you see several places in disrepair, don’t expect your home value to rise soon. 

If you area is a prime location.  As buyers return, they naturally grab places with short commutes and better schools and amenities which will help increase the sales price.

Filing were up 7% compared to July, but were still 33% lower than a year ago. 

According to Realty Tract’s report, 228,098 homes in the US received some kind of foreclosure filing in August.  Foreclosure auctions and bank repossessions, which come later in the process, both fell slightly. 

The increased in default notices may signal that lenders are starting to finally push through foreclosure paperwork that was previously delayed by “robo-signing”. 

The good news is that bank repossessions have been falling.  Lenders repossessed 64,813 homes in August, a six-month low and a 37% decline after they hit a peak in September last year.

Meanwhile, foreclosure auctions were scheduled for 84,405 homes, the lowest number in more than three years. 

Nevada, California and Arizona housing markets are the hardest hit by foreclosures. 

Information from CNNMoney.com