DC Fawcett – Brace Up For Purchase In 2017

Introduction

Finding a suitable home for you to live in could be the most complicated process, and there should be a meticulous approach towards the process of purchasing a home.  There are several criteria which should be taken into account such that the home buying process is made easier.  DC Fawcett says You need to emotionally brace up when purchasing a home and it needs much assistance from experts. Also, the formalities are like a maze through which a realty agent would guide you through. Make sure that you have all the necessary money in hand before you go out for purchasing of a home.

Brace-up-for-purchase-in-2017-dc-fawcett

Now let’s see some points for purchasing a home in 2017.

  • There are a few fortunate people who can make the entire payment in cash. But for the others, financing comes to the aid. But, you need to furnish a decent credit to avail the mortgage.  Your ability to furnish a good credit score makes it possible for you to avail a mortgage.  When you cannot furnish a decent credit score, you might be turned down the mortgage.

  • When you avail of more loans, there is every possibility that the debt outweighs the credit. There are lucrative mortgages which would come up, and you should not miss it just because you have severe debt damaging your credit score.

  • You can get a fine picture of how much you can afford through the process of mortgage pre-approval. Just see to it that your pick of property caters to your budget.  Being conscious of every penny that you spend, you can ignore the properties that are beyond your affordability. Thus, you can avail of the option to purchase a property in the community that best suits your financial stand.

  • For the first time buyers, there is no inkling of a doubt that, for the financing to be done, a mortgage lender has to be approached for consultation. You need to come to terms with the money you can afford and then get into the process of buying a home. You need to have a sound knowledge of the market in the vicinity.  You know your priorities better when you work with a realty agent.

  • Always there is a prevalent uncertainty about the value of the houses, but when you make an informed decision to purchase a home, you are happily in the home thereafter.

  • The price you have to pay for financing the home buying generally exceeds the home’s actual value. Be versatile regarding the mortgage alternatives and other expenditures.

  • The house may be offered for a certain price for which much care is given. The proposal to purchase a home involves both the cost and the terms.  The terms require much additional amount to be shelled out in certain instances.

  • Retaining a property without insurance is one of the most foolish things that one could do. The insurance acts as a shield during untoward incidents that affect and damage the property.

  • The closing process comes with different terminologies as Settlement or Escrow. It is no more manual in most of the places, and there is increasing computerization of the process.

  • The process of home purchase requires you to be financially sound. Following the steps that are listed above will make things easy for you to purchase a home.  A bitter surprise should not spring on you, and you need to take every measure to see to it that you clear the process in a hassle-free manner.

Conclusion

DC Fawcett is a real estate expert and you can get to know about the various aspects of real estate through his free videos too.

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DC Fawcett-Profit Earning Methods in Real Estate

There are numerous ways to make money in real estate business. They are fixing and flips, long-term rentals, vacation rentals, REIT’s, short-term rentals, wholesaling and non-performing loans are the ways to invest in real estate. The returns in real estate depend on how much money you invest. All types of investment have different levels of risk. DC Fawcett suggests different ways earn the profit in real estate.

Methods to earn profit in Real Estate

  1. Cash Flow – it is the extra profit earned after meeting all the expenses on the property. Say if you rent a house for $2500 and if my expenses are $2000, you make a profit of $500. If you own 10 units like this, the cash flow will be $5000 and so on.
  2. Property value appreciation – If you purchase worth $3, 00,000 and sell it for $4, 00,000 after one year, you earn a profit of $1, 00,000. It means you have become richer by that amount. However, it is combined with the wealth generation team members.
  3. Low pay down – when you mortgage your property, you pay the mortgage amount every month as per the agreement you have made with your lender. The payment consists of principal and interest. The latter is the profit for the lender, but it is the principal amount you pay every month. When the property value goes up every year, your equity increases, which separates property worth and the mortgage amount you pay monthly.
  4. REIT Investment – Stands for Real Estate Investment Trusts. They are purchased in stocks and mutual funds. It is the easiest way to invest in real estate as the trust takes care about the investment amount and handles the market.
  5. Tax Benefits – The real estate investors get tax benefits from the US government. There are many benefits you can get in real estate investment. They are:
    • Whatever cash or appreciation you get into real estate is not considered as a business income.
    • The income tax that is due is considered as an offset is treated as depreciation.
    • When you sell rental properties, whatever profit you earn is taxable on long-term capital gains if there are any.
    • The government offers you 1031 exchange which can be used as tax exemption in order to trade up with bigger and better properties.
  6. Vacation Rentals – If you have purchased a house at the tourist location, you can hire a property manager to help you to rent the house. You can take advantage of vacation rentals during the peak seasons.
  7. Short term rentals – You can go for short term rental properties out of your need or necessity. Many people invest in this and sell it when the value appreciates so as to make profits.

Conclusion

There are several methods to earn profits in real estate. Whatever way you want to choose in this business depends on your requirements. Fix and flip give you huge profits, provided you keep high volume deals and quickly convert it to money