WANT TO GET A $150-$250 MONTHLY RAISE?

Call us to LEVERAGE YOUR TAX REFUND OR Get $15,000 IN DOWNPAYMENT ASSISTANCE FROM THE STATE TO BUY A HOME!!

Chrystal Roy and the Team at The Safari Group LLC of Real Estate Realty LLC has known for years that buying a home provides long term financial benefits. But how do today’s renters become tomorrow’s buyers? We share tips for you to develop strategies to move from paying someone else’s mortgage to paying your own, increasing your net worth and having a legacy for your family.

It’s a Good Investment

If you are currently renting, use our Rent vs Buy Calculator to help determine which option provides the most economic benefits for you over time. Rent payments go straight into the pocket of the landlord – and at the beginning of the next month, you’ve got nothing to show for it.

Build Equity

With each monthly mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. As your home increases in value, it creates more equity for you.

Enjoy Significant Tax

Owning a home can reduce the amount you pay in income taxes each year. The mortgage interest and property tax payments can be deductible from your Federal Taxes and State Taxes. As well certain closing cost and loan discount points.

Deductions

Owning a home can reduce the amount you pay in income taxes each year. The mortgage interest and property tax payments can be deductible from your Federal Taxes and State Taxes. As well certain closing cost and loan discount points.

Build a Strong Credit History

Once you have purchased your dream home and is consistent in paying the mortgage loan on time, it demonstrates to other lenders that you are a good borrower and the risk of you defaulting on a loan is low. This strong credit history will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses.

Contact US to qualify for NC’s $15,000 in Down Payment assistance and we’ll help you make your next move!

Chrystal Safari Roy | REALTOR® | Investor | Broker in Charge | REAL ESTATE REALTY LLC

WE BUY HOUSES TOO!

ATC School of Real Estate MASTERS DESIGNATION | Luxury Home Specialist | Certified Military Residential Specialist | HUD Registered Agent

704.562.1030 | e: Chrystal.Roy@RERCharlotte.com | Text for Faster Service

SouthPark Towers 6000 Ste 1200 Fairview Road Charlotte, NC 28210

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Investment Properties

Experienced and green investors evaluate potential investment properties very differently.  Both should follow a few similar guidelines.

When considering an income property, the first decision is to establish your targeted rental client.  The property you choose may limit the pool of prospective tenants, but not in the way you’d hoped.  If you’re targeting young professionals, location, features, amenities and potential rental rate will be very different than that for a future tenant who is just entering the market as a first-time renter still in school or just entering the workforce who needs to be located near public transportation.

Next is to determine, based on your targeted client, the location, features, amenities and rental rate for your likely renter.  A good rule of thumb is to purchase a property you wouldn’t mind living in yourself, and the closer to home the better.  Long-distance land lording is not advisable. 

Though some landlords feel it’s too close for comfort, a rental in your own neighborhood will allow you to keep an eye on your property, and to know first if anything begins to go wrong.  No matter where you purchase, always introduce yourself to the neighbors and give them your cell number and tell them to call you before they call the police, if the need arises.

Now that you’ve found the right property at what looks like the right price, it’s time to confirm that with a rental rate estimate based on the currently rented homes in the area before you make the purchase.  Your experienced REALTOR® can help with that.

If the rental rate estimate looks promising, consider the condition of the property.  Is it just dated or dilapidated?  Has it been updated in the last 5 years?  Or does it need a major overhaul?  Floor plan issues are best left to the pros.  For a positive return on your investment, kitchen updates shouldn’t cost more than 10% of the home’s value.  That’s true for any renovation. 

Determine your level of ability to make changes that would make your rental number one with interested consumers.  Choose materials and products that require less routine care and maintenance, and factor in the timeframe to complete and cost for each.  Add 20% to your budget for unexpected delays and overages.  Your REALTOR® can provide a list of licensed, preferred vendors to help with any repairs, maintenance, or renovations needed.

If the total cost of the project meets with your overall budget, it’s time to get the property under contract, begin advertising for a renter, and screen and hire your renovation team.

Next up, how to screen for good tenants.

Building Your Investment Portfolio

With great rates, lots of inventory, and stricter lending guidelines, now’s an excellent time to increase or begin your rental property portfolio.  Many homeowners are afraid or reluctant to become landlords, but with a few proven strategies and processes in place, your rental properties can become a passive income stream that adds to your net worth.

There are several ways to add to your rental inventory, including purchasing a resale property from the homeowner or bank, as in foreclosures or REO’s, purchasing new construction from the builder, bidding on the courthouse steps (I have the 5 – 6 attorneys who handle all these sales in my Favorites), and converting your current home or inherited property to a rental.

Develop your business plan first.  Determine how you’ll acquire the property and where you’d like the rental home or business property to be located (in the same city as you is best; long-distance land lording isn’t ideal) and the price you’d like to pay for it.  Next, evaluate the current rental market for rental rate estimates on similar properties currently rented in the area you’ve targeted – this will help you anticipate the type of renter who might apply: an executive, a first-time renter, etc., and your potential return on investment.

Ask your full-service REALTOR® what renters are looking for when touring.  If a garage is a must-have for most renters in your market, be sure the property you purchase has one.

Investor rates are a bit higher if you must get a loan to make an investment  purchase, but if you have enough equity built up in your personal home, you may be able to purchase a resale, foreclosure, REO or new construction house, condo or townhome with your equity line by simply getting a certified check from your bank the morning of closing.

Want to convert your current home to a rental and move up?  You can if you can provide your move-up lender a 12 month lease on your current property, using only 75% of rental income to help qualify for your new mortgage, IF you have at least 30% equity in your current property.

In servicing the rental, you have several options.  You can pay a management company to handle everything on your behalf, or you can be more hands on, screening the calls, meeting the potential clients, to negotiating the lease and managing all the details.  Whether you decide to hire it out or do it yourself, you must know what to do or what should be done for you, to protect your best interests.

For specific strategies on qualifying prospective tenants, from your first sentence when answering the inquiry call to eliminate riskier applicants, to what to include on the application and lease, consult your full service REALTOR®.  They’re there to help you navigate the strategies and processes that will make you a successful rental investor.

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I love what I do, I’m good at it, & I’d love to work with you! My personal best is 8th with foreclosure bid; we not only won (it was NOT more $), but listing agent complimented me on my complete package, & asked permission to use my secret weapon!

My listing was on Google, first page, number three position, ‘above the fold’ within minutes of my blog post featuring it!

Chrystal is a REALTOR® and principal of The Safari Group, a local, homegrown  real estate firm, specializing in all phases of the residential and small business real estate market, including New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, Foreclosures, Short Sales, and Luxury Homes and GREEN Features.  Contact her at 704.562.1030   TXT/PH or Chrystal@TheSafariGroup.com

Choose Your Broker Participation Level to Service Your Rental Portfolio

In North Carolina, if you’re not interested in hiring a large property management company, but don’t have the skill, experience or desire to manage the application and leasing portion of your rental portfolio, your expert, full-service real estate broker can be an asset to you.  An excellent candidate would be a licensed, experienced real estate broker who has him or herself owned and managed rental properties.  Services offered might include any one of several levels of involvement of your choice.  As a landlady of over 12 years with zero evictions, the Leasing Agent Duties and list of services I provide include:

Level One –

1. Provide Rental Rate Estimate based on currently rented units in Mecklenburg county with respect to year built, zip code, and number of bedrooms.
2. Advertise in-house to rental specialists and other leasing agents
3. Train you to screen all applicants, including key statements that may lead to a desired ‘hang up’ eliminating time-wasting appointments
4. Provide application and lease forms, and phone consultation.

Level Two –

1. Provide Rental Rate Estimate
2. Advertise in-house to rental specialists and other leasing agents
3. Personally phone screen all applicants (you have final approval)
4. Arrange appointments for you to show the property
5. Provide application and lease forms, and phone consultation

Level Three –

1.  Providing Rental Rate Estimate
2. Advertising in-house to rental specialists and other leasing agents
3. Agent-screening applicants according to your criteria (you have final approval)
4. Arranging appointments and showing the property 
5. Provide application and lease forms, and phone consultation
6. Listing the rental property in the MLS system
7. Providing signage
8. Attending final negotiations and effecting lease documents
9. Setting up monthly schedule of rental payments to be sent directly to you for deposit

Level Four includes all Level Three activities plus monthly rental management duties including deposit of rent to your trust account, tenants report problems to me, I arrange for estimates for repairs, etc., and submit to you for approval of work to be done and pay vendors from your landlord trust account, and provide itemized monthly statements. The fee is Level Three’s fee, payable at lease signing, plus 10% of monthly rent.

Call me to discuss the level of service you’d like me to provide for you, or to consult on adding to your portfolio.  I’ll teach you the good, the bad, and the ugly of selecting the right property for your investment portfolio.

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Chrystal Safari has over 15 years experience in personal property management and residential real estate sales and is a Luxury Home Specialist and licensed REALTOR® in North and South Carolina.  As a MASTERS Designation holder, she is a specialist in New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, and is a multi-million dollar producer.  Chrystal is a member in good standing of the Charlotte Regional Association of REALTORS®, North Carolina Association of REALTORS®, and National Association of REALTORS®.  As EcoBroker®, she offers guidelines to assist home buyers and sellers in evaluating true green features and their benefits to real property value, home ownership, tax savings and mortgage closing table capital contributions.  Chrystal is backed by certified and insured professionals to assess and protect your investments based upon your personal needs.  She can be reached at 704.562.1030 or Chrystal.Safari@gmail.com

Your Rich Uncle Sam Wants to Give You $8,000!*

IRS.Gov reports that for 2009 owner occupant home purchases, the American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1, 2009.

A first-time home buyer is one who has not owned a home in the last three years.

*For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

 The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

For more information on the tax credit, visit here: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

For more information on property listings that meet your real estate needs, call me at 704.562.1030.  I’ll get an idea of your big picture and send emailed property listings that meet your criteria and introduce you to a lending officer who can guide you through pre-qulaifying and credit repair, if needed. 

Rates are low, list prices are low, and inventory is high.  It’s a great time to buy low for future increased home equity when the market recovers.

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A Charlotte area native, and licensed in NC & SC, Chrystal is very experienced with international relocation, home buying and selling and with rental portfolio development and holds MASTERS Designation specializing in New Construction, Finance, Marketing, Objection Handling, Relocation, and Technology and is a member in good standing with Charlotte Regional Association of REALTORS®, North Carolina Association of REALTORS® and National Association of REALTORS®

Foreclosures: The Good, the Bad and the Ugly

There are many distressed properties available in our market, also known as foreclosures.  They are easy to find and generally easy to buy, with some exception.  But if your goal is to realize a financial return on investment, your purchase strategy must be lead by the facts, and not the emotions, of the transaction.

There are basically two types of distressed properties: those distressed by the financial condition of the owner and those in distressed condition.  Of those two types, subcategories exist that need to be understood for your maximum benefit and protection.

The two types of distressed properties are those that are:

1. The result of the homeowner’s financial position or condition or 
2. The result of the property’s inability to overcome a significant structural or other depreciating issue(s)

The better of these two scenarios for the future buyer is item one.  A home owner’s financial position or condition may lead to a foreclosure due to his inability to continue meeting his monthly housing costs, including mortgage and other escrowed amounts such as HOA dues, etc. 

In this case, if the homeowner is unable to rent or sell the property at a profit or to break even, he has few options.  He may sign the house back over to the lending bank or agency.  This process is called a deed in lieu of foreclosure.  Another dilemma may be getting behind in the mortgage payments and to become foreclosed upon.  Both of these cases have a significant negative impact against the credit score that lingers for several years. 

Foreclosures may be listed in the local Multiple Listing Service, be available as a Sheriff’s Sale to be sold at the courthouse steps, and/or be listed on the presiding attorney’s website for sale at the courthouse steps, or may be available at an onsite or offsite auction. 

There are also a myriad other websites that market foreclosures to capture buyer clients’ information.  If the lender is known, the pre-foreclosure department may accept an offer before the property hits any of these venues.  I have represented clients in purchasing foreclosures in all the above scenarios.  

A form of pre-foreclosure is increasing in prevalence and is called the short sale.  This typically takes place prior to foreclosure, but it’s headed in that direction.  A short sale occurs when the homeowner owes more on the property than its market value and fails to maintain his mortgage obligation.  Currently about 50% of these transactions close.  Those that don’t successfully close become foreclosures.  Last year’s first quarter there were 25 short sales being negotiated in our market.  This year, first quarter, there are 700. (Wells Fargo Loss Mitigation Supervisor Gwen Oberg, Secondary Market Loans, Charlotte Market).

Though the short sale or foreclosure sale may be an arduous process, if the property meets all your requirements, it may be worth the extra effort and patience it needs to get a great deal.

BUT BUYER BEWARE

Distressed property type two is not always obvious.  While the home or property owner may or may not have a financial condition that leads to a short sale or subsequent foreclosure, the property itself may have prohibited a timely and profitable sale.  It’s easy to see that a 3 bed, one bath home is functionally obsolete in our market, but with the right changes that house could become one of the best in the neighborhood. 

What might not be apparent is the fact that from the front yard of a WOW house a major highway is visible or audible and on the other side of the street commercial development and traffic will greatly affect potential for appreciation.  Your trained and experienced REALTOR® knows what to look for in evaluating a property’s potential for appreciation or depreciation to help protect your best interests. 

Don’t be misled by well-meaning friends, neighbors, and co-workers who tell you all about the new homes they are purchasing for pennies on the dollar in the best neighborhood in town and lose faith and trust in your REALTOR^®.  If you begin to feel jealous and angry that those folks a getting what should have been yours, you may make an ill-advised or hasty buying decision that you’ll later regret.

chrystal.safari@gmail.com