Category Archives: Investments / Rental Property

Self-Directed IRAs: How to Invest in Real Estate…Tax Free with Patrick Hagen & John Donati

How to Invest in Real Estate…Tax Free

Patrick Hagen from “The Entrust Group” has over 12 years of experience working specifically with self-directed IRAs. As well, John Donati has been working with Patrick since July 2016. The Donati Group has over 45 years of experience in the real estate industry. This is exactly why we asked them to come on the show to share their expert knowledge on investing in real estate to fund retirement with all the tax benefits of an IRA.

Continue reading Self-Directed IRAs: How to Invest in Real Estate…Tax Free with Patrick Hagen & John Donati

Shopping Around For a Mortgage?

Shopping Around For A Mortgage

Here’s the inside scoop on how to do it right!

First:  Are you working with a TRUE Mortgage Professional?

The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.  But how can you tell?If your shopping just rates you may want to consider who your lender is going to be to handle your transaction.

 Here are FOUR SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY.  IF THEY DO NOT KNOW THE ANSWERS… RUN…  DON’T WALK… RUN… TO A LENDER THAT DOES! To help narrow your search Doug Haldeman is that lender! Continue reading Shopping Around For a Mortgage?

Election Aftermath and Cabinet Posts

trump-cabinetListen in as Doug and Tammie talk about what happened in the economy after the election on November 8th.  They also talk about the Presidential Cabinet pics that affect housing:

Secretary of Housing and Urban Development (HUD) – Dr. Ben Carson

Secretary of Treasury – Steven Mnuchin

FHA Loosens Condo Requirements

condoCondos, which are often popular housing options for many younger and first-time homebuyers, are also viable living arrangements for older homeowners who seek a more active and urban lifestyle, or a more maintenance-free quality of life. Current blanket certification policies, however, have restricted not only many would-be buyers from purchasing condo units, but have also hindered the ability of seniors to continue living in these housing developments.
FHA has historically set standards for condominium project approvals.  The good news is they have loosened some of those rules for investors and private owners.
You can do that at this following link:
 To see the actual proposal follow this link:

8 Red Flags On A Seller Disclosure

seller-disclosure

8 Red Flags On A Seller Disclosure

Buying a home is a little like falling in love. When you first start dating, you’re smitten. Which also means you’re more likely to overlook some critical flaws that might otherwise slowly crack away at your relationship down the road, potentially leading to heartbreak. Such is the case when buying a home.

1. Notes or lack of details about the roof

It’s not a hard and fast rule that you should dig deeper into what a seller or inspector means when they say “small roof leak” or “a few roof tiles missing.”  You may want to have a professional roofer come take a look before buying.

2.  Any structure-related items

So if you’re faced with exterior wall cracks, sagging rooflines, or significant cracks in the foundation, and your inspector points them out or the seller mentions them in the seller disclosure form, seek guidance from your real estate agent and seriously think of having an industry specialist take a look at the potential problem.

3.  The dreaded “no representation” or “unknown”

It’s not necessarily a sign to run away from a home, but if a seller marks an item such as the basement or windows on the seller disclosure statement as “no representation”.  Then you’ll most definitely want an inspector to look more closely at that area.

What does it mean? Sellers can opt to put “no representation” on an area of the home in their statement to avoid disclosing the conditions or characteristics of an area of the property, even if they know of issues. It’s sneaky, but it can protect the seller from potential litigation from the buyer down the road.

4.  Mentions of previous flood damage

Flood damage can wreak havoc on a home’s foundation and cause mold issues, among other things. That’s why when you see a seller disclose that the home has had flood damage, no matter how small, the advises is to be wary.  If your inspection comes back with dampness or strong odor you may want to call in a mold specialist.

5.  Any liens on the property

Issues regarding liens when a legal right to the property is held by a creditor or some other party aside from the seller should pop up during the title search. Be extra leery if a seller discloses one in their statement.

Be sure to consult your title company, real estate attorney, and the agent representing the other side to get clarity around the issue and time frames it could take to clear the title. In our experience, liens can be removed, but it typically takes twice as long as anticipated, and a buyer should be prepared for delays

6.  Any easements or land-use restrictions

If you buy a home planning to build an addition or make major renovations, you may discover after the sale closes that existing easements on the property forbid adding permanent structures in the exact spot you were hoping to make your new master suite.  Easements and land restrictions can affect the value of a property.

A buyer should get a title report giving a detailed description of the easement. In addition, a survey would be prudent to identify landmarks, how it affects the property, and if it is of no harm or affects the future marketability or value of the property.

7.  Failure to get proper permits for additions or improvements

Heed this warning, friends: Failure to get permits is a huge red flag!

Without permits, a buyer has no idea if the work was completed by inexperienced and unqualified homeowners or a true craftsman. In these scenarios, we recommend a thorough home inspection by a licensed home inspector of the work completed. In addition, a thorough review of seller’s disclosures to understand with clarity the scope of work completed.

8.  Lead paint or asbestos

Don’t automatically rule out buying a home if a seller discloses that the home has (or had) asbestos or lead-based paint.

It is better to be cautious and do your homework before correcting, removing, or remodeling these types of homes, though. Talk to your local home inspector about evaluating and testing the property.  Review your local health department requirements. Once you know the safe measurements in your area, you can do the proper testing for these items. Don’t forget to learn how to properly dispose of these items safely. By knowing the costs and health regulations, you can factor in the cost of removal or remediation and factor that into your offers.

What salary do you need to afford a home in your city?

Salary Needs To Buy A Home In The US
Salary Needs To Buy A Home In The US

by Ryan Smith25 Aug 2016

What salary do you need to afford a home in your city of choice?  

How does your city rate in terms of home affordability? A recent report by HSH.com determined the salary families would need to make in 27 metro areas in order to afford the local median home price.

The study assumed a down payment of 20% and operated under the standard that a monthly mortgage payment shouldn’t exceed 28% of the borrower’s income, according to the Huffington Post.

San Francisco residents need the highest salary if they want to afford a home, according to HSH.com. In the San Francisco metro area, a buyer with a 20% down payment would need to make $162,000 a year to afford payments on a median-priced home.

Pittsburgh, Penn., meanwhile, was most affordable; homebuyers there could meet their mortgage payments with only a $32,400 salary.

HSH.com found that home prices have gone up since the first quarter in every metro area surveyed except for Tampa, Orlando and Miami. Nationally, the median home price was $240,700, about a 10% increase from the first quarter.

Back To School and Salary Needs Audio:

Continue reading What salary do you need to afford a home in your city?

The Fastest And Safest Way To Payoff Your Home

Doug Show CardCornerstone Mortgage, Inc offers an amazing product that blows away other lenders.  Doug Haldeman, Branch Manager at the St. Charles office location, discusses a new fast and safe way to pay off your home.  Be sure to listen in to find out if this would be an option for you.

If after hearing the show and you want more information reach out to Doug today at 314-472-3684.

Below is a link to Doug’s mortgage coach presentation and the audio to the show.

Doug’s Mortgage Coach Presentation

Shelly Clark On Surveying, Mapping & Flood Zones

Shelly Clark show card

 

Are you in the zone? The flood zone that is. Doug and Tammie interview Shelly Clark with Cardinal Surveying & Mapping. Shelly shares her experience and wisdom in shedding some light on FEMA Flood Zoning and the difference between 100 year and 500 year flood zones.  In addition, Shelly discusses what homeowners need to know when they own property.  Listen in today!

Segment: Flood Zones

Segment: Surveying Part 1

Segment: Surveying Part 2

Rethinking Your Resolutions

resolutionsNew year, new you, new home. The calendar change always invites all sorts of resolutions, some of them attainable, many of them impractical and stress-inducing.  But changes needn’t be big or difficult to be life-altering. Here are some financial–related New Year’s resolutions you can make for 2016 that will pay big dividends with minimal effort. Continue reading Rethinking Your Resolutions

Investing In Real Estate As A Couple: Part 1

IMG_1080Real estate investing is not a “get rich quick” scheme.  Just as any home needs a solid foundation so does your real estate education.  This is key to your long term investing success.

First ask yourself a few questions:

Do we have a clear understanding of what type of real estate properties are best suited for our specific investment objectives and time lines?  (Ex: Cash Flow, Location, Tax-Advantages, Time)

Do we have a written criteria for selecting our investment property?

Have we figured out the strengths and weaknesses of each person?

Do we have a checklist to evaluate a property to help communicate our expectations and minimize surprises?

Do we as individuals understand the potential pitfalls of investement property?

Does our real estate model include carrying costs?  (Ex: Utilities, Taxes, Maintenance)

Do we have unbiased mentors to help provide guidance on our real estate decisions?

If Yes to these questions….Then Celebrate you are ahead of the game!  If not, consider meeting with Doug Haldeman to address these potential issues.   You can call  or email 314-472.3684 or dhaldeman@cornerstonemortgage.com.

Doug Show Card

 

 

 

 

 

Investing as a couple Audio 1

Investing as a couple Audio 2