Think You Can’t Afford a Vacation Home? Think Again



Image via Pixabay

A vacation home might seem like it belongs squarely in your “dream goals” column—something you’ll invest in if you come into a windfall of money. But the truth is, a second home is more attainable than you think. In fact, it could even be a smart financial strategy! If a vacation home is on your radar, here’s what you need to know.

Vacation Home Statistics

According to HomeAway’s 2016 Vacation Rental Report, 70 percent of vacation home owners pay more than half of their mortgage with rental fees, and 54 percent cover more than three-quarters of their mortgage. That represents an average $28,000 in annual income with fewer than 10 hours per week of work. And since the typical vacation home owner rents out their second home for only 18 weeks of the year, there’s still plenty of time to enjoy the property for your own leisure.

Choosing a Sound Investment

Investing in real estate is far from a sure thing, but there are a few things you can do to make sure the numbers work out in your favor:

  1. Choose a location with a strong rental market. Renting out your vacation home is a great way to generate passive income. But if renters are in short supply or prices are low, you’ll lose money maintaining your second home. And if you select a location that relies on seasonal tourism, like a ski town, you might not be able to use the vacation home when you want to.
  2. Buy smaller and add your own garage space. Sometimes the best choice is to opt for a smaller space. You can save money on the purchase price as well as utilities and insurance. If you buy a smaller freestanding home without a garage, you can easily add a detached prefabricated steel garage that can house your car or function as extra storage.
  3. Vacation for less than two weeks each year. If you use your home for less than 14 days in a calendar year, it’s considered a rental property, and you can deduct rental expenses like management fees and depreciation. While you’ll have to pay taxes on the rental income, you’ll come out ahead if you rent the property for most of the year.
  4. Or rent out your home for less than two weeks each year. If two weeks of vacation isn’t enough, there’s another tax rule that can work to your advantage. If you rent out your home for less than two weeks each year, you don’t have to report the income to the IRS. This is a great option if you’re near a big annual event that lets you charge higher rental fees. You won’t be able to deduct rental expenses, but you can deduct mortgage interest and property taxes. For more information on how rental use affects tax obligations, read the IRS rule or this breakdown from Bankrate.
  5. Buy a home you’d like to retire to—at least temporarily. When you sell a primary residence, the first $500,000 in profit is exempt from capital gains taxes ($250,000 if you’re single). However, this exemption doesn’t apply to vacation homes, with one caveat. If you live in your second home for at least two years before selling, you can take advantage of the primary residence exclusion. This is a smart solution if you want to retire to the beach but aren’t committed to staying long term.

Protecting Your Investment

Making money off your second home only works if you take good care of it. Whether you’re renting or selling, it’s important to keep the property in good repair to get the best price.

If your primary residence is far from your vacation home, hire someone to handle maintenance and coordinate cleaners. If your vacation home is vacant for extended periods, invest in a strong security system and ask someone to check in periodically. If you have a swimming pool, be sure to install safety features like temporary fencing and pool covers to keep trespassers and wandering children out. And don’t forget to maintain the exterior, even when the property isn’t in use. Curb appeal is a major selling point, and you want your property to leave a good impression on prospective renters.

Whether your priority is generating income or having a gorgeous place to vacation, a second home is an excellent option. With the right property, you enjoy a convenient vacation destination, a potential retirement property, and passive income to enhance your lifestyle. Choosing the right vacation property for your personal goals is complicated, so consult your realtor and accountant for help making the best choice.

Guest Post Written By:

Seth Murphy, Papadiy.com

seth@papadiy.com

El Monte Wholesale Flip


Vacant, Short-Sale, Fixer

  • Main House is 3/3 – Garage was converted into a 1/1 with a Kitchenette (May not legal, although it is very nice)
  • There is a separate 1/1 attached to the main house (This one is not legal)
  • Total SF is 1,580 plus the Garage 

– EMD is $10,000- Closing date is FIRM for June 10 

– Purchase Price is $475,000

 – Repairs $35,000-$40,000

ARV $615,000-$625,000

Contact me ASAP with Proof of Funds if serious. Principals only please.

Direct Contact: Ph. 858-386-0949 Greg@FixandFlippers.com

Maximizing Your Investment: Ideal Renovations for an Older Home


Courtesy of Pixabay.com.

When it comes to renovating an old house, it’s all about return on investment (ROI). Jumping into a costly remodel that does little to add value represents a significant financial loss, so it’s important to make smart, well-informed decisions about how much renovations cost and where to focus your efforts. Buying an old house is always a gamble and it’s usually a huge, long-term investment, so it’s essential you know where to renovate to do the most good. According to an article in Remodeling Magazine, the average remodeling job recovers under two-thirds of its cost at the time of sale. Fortunately, there’s a handful of renovation projects that are normally quite reliable when it comes to ROI.

Reinsulate

Many old houses suffer from a lack of insulation, which results in extremely high-energy costs. Adding or replacing insulation may not be the sexiest of renovations, but it makes a great deal of sense from a savings standpoint. Check the insulation in the attic, which should have a minimum of 8 inches of cellulose or 11 inches of fiberglass insulation. If not, or if what you find is dirty, it probably means it’s reached the end of its effectiveness and needs replacing. The average cost of re-insulating an attic is around $1,300, but the energy savings will be significantly higher, making this one of the best remodeling projects for an older home.

Window replacement

Replacing old, drafty windows has a doubly positive impact. Not only does it upgrade a significant aesthetic feature, it’ll save money if you replace the old ones with Energy Star-approved and certified windows. New, energy-efficient windows can save you as much $465 a year in heating costs, and will recoup your investment in about 5 years. However, be aware that a full window replacement project is often unnecessary, even if your pro recommends it; focus instead on window frames showing signs of age, including rotting wood and excessive window condensation.

New flooring

Hardwood flooring lends an air of elegance and refinement to any home, particularly an older house with an overall vintage look. Many homeowners assume that it will be too expensive and too difficult to maintain, but hardwood lasts considerably longer than carpeting, which wears out after about 10 years. It’s not unusual for hardwood flooring to last for decades if it’s well taken care of. Applying a protective coating every 5 years or so will add considerably to the lifespan of hardwood, which should only need to be sanded and refinished about every 10 years.

Lawn appeal

Home renovating doesn’t always have to be an indoor activity. You can also enhance your home’s look by beautifying your landscaping. There’s nothing quite like the green glow of an attractive stand of grass, which you can achieve with regular applications of fertilizer and weed control. Why not add a few design elements, like decorative flagstones or a brick-lined walkway? Brick adds an appealing touch of color set against the green of your lawn. If you’re into gardening, think about adding a flower bed lined with railroad timbers, an appealingly rustic aesthetic element. Add a fresh layer of mulch around trees and shrubs, and you’ve got a colorful lawn that’ll turn heads and add to the visual appeal and value of your home. If you need some help with your outdoor beautification projects, lawn and landscaping service prices vary greatly depending on what you’d like to have done; you can expect to pay around $320 for a minor project that doesn’t include a lot of labor or materials, meaning you’ll see a significant ROI for giving your yard a little TLC.

Renovating an older home can be a tricky proposition if there’s lots of expensive antiques and furniture in the way. To avoid doing damage, look into renting a temporary storage space to preserve them while you’re kicking up dirt and dust remodeling. Shop around for the best deals; for instance, CubeSmart Self Storage in Orlando is currently reducing storage fees by 50 percent for the first month.

A house, particularly an old one, is more than a home; it’s a major business investment. Choosing renovation projects that earn you a high return on investment is important for turning an old house into a highly profitable asset. 

Guest Post by: Seth Murphy – Papadiy.com

Contact him: seth@papadiy.com

For more info about home renovations, please leave your info below.

Nationwide Commercial Loans for Investors


Need Capital to Retrofit your Soft-Story Building in California?

We can help!

  • 2nd TDs on Commercial and Multi-family buildings in California
  • Rates start at 8.99% at 40% CLTV 
  • Up to 12.99% at 65% CLTV or for difficult area / condition
  • Min. 6 months interest on 3-year loan
  • Min. 12 months interest on 5-year loan
  • Loan amounts over $50k OK

Los Angeles, Pasandena, West Hollywood and Santa Monica City have mandated the retrofitting of multifamily soft-story buildings.

Top Markets

Los Angeles, San Francisco, San Jose, San Diego, Sacramento County

Standard Markets

Riverside, San Bernardino, Ventura, Orange, Bakersfield, Fresno County

Acquisitions or Refinances, Workouts, Recapitalization on stable and transitional assets

Highlights

  • National Lending
  • Freddie Mac Multifamily Small Balance Loans $1M to $7.5M – Cashout is available. Min – 5 residential units. 85%-90% occupancy required.
  • Top Markets: New York, Northern NJ, Long Island, Boston, Washington DC, Chicago, Los Angeles, Orange County, San Diego, San Francisco, San Jose, Denver, Miami/Ft. Lauderdale, Minneapolis, Portland and Seattle. 
  • Contiguous site properties no limit 5+ units
  • Scattered site properties no limit 5+ units
  • Flexible Terms 5,7,10 year options with 30 year, Hybrid or Fixed options.
  • Interest Only Options
  • Non-Recourse
  • Competitive Rates in the 4’s and 5’s
  • Conduit/CMBS loans from $1M to $75M
  • Bridge Loans from $1M to $75M
  • Preferred Equity/Mezzanine Financing from $2M to $50M  
  • National primary and secondary markets accepted.
  • Structured Equity/JV Financing from $3M to $20M
  • Emerging Development Fund (Pay pre-development and acquisition costs from $75k to $2.5M) 
  • Your pricing would depend on Pre-Payment structure, Loan LTV, Income Profile and Interest only period.
  • Providing Joint Venture preferred equity behind GSE mortgages. One stop shop for your commercial real estate asset types.
  • Pre-Development – To be used for: Acquisitions, legal costs, costs for third-party reports (eg. Environmental assessments and appraisals) design plans, tax credit applications, deposits and other pre-development costs.
  • Rental Housing, Commercial; Industrial and Mixed-use projects are acceptable.
  • Pre-Development ($100k-$750k) 80% of budget
  • Pre-Development & Acquisition ($1M-$2.5M) 30% of total budget
  • Flexible pre-pay. Can be 1st or 2nd position mortgage with personal guaranty. Full Recourse. 

Eligible property types:

  • Multifamily
  • Mixed-Use
  • Retail
  • Office
  • Industrial
  • Self-Storage
  • Independent Living
  • Medical Office
  • Student Housing
  • Mobile Home Parks
  • Hospitality in major and secondary markets

#FreddieMacSBL #CMBS #BridgeLoans #PreferredEquity #StructuredEquity #Mezzanine

Inquire Today!

Nationwide Private Bridge Loans Available


  • Quick Close options 1-2 weeks possible.
  • Funds for Improvements – Cashout for Investments OK!
  • Business Purpose use for Funds OK.
  • Bank Turndowns are OK
  • Bankruptcy is OK
  • No Docs
  • 12-24 months No-Prepay
  • Owner Occupied is OK – up to 5 yrs Fixed
  • Long-term hold loans for good credit & low rates (4%-7%)
  • Luxury Loans to $15,000,000
  • Interest reserves & Closing costs can be included in the loan if you have the equity for Fix and Flip only.
  • Refinance and Purchase loans Available
  • No Credit, No Doc, No Verified income for Foreign Nationals, living abroad is OK
  • No Tax Returns, Non-Warrantable Condo’s are OK
  • 30 yr fixed options are available
  • Stated Loans Available
  • No Source / Seasoning needed for loan approval
  • Cross Collateral structure funding with existing properties in portfolio
  • Current Renovation in Progress is OK.
  • Construction to Permanent is OK
  • Multi-Family, Commercial loans OK
  • Nationwide Lending, Case-by-Case Decisions based on complete scenario!

Leave Your Loan Request Inquiry Below Today!

Non-QM Niche Loan Programs


Owner-Occupied Non-QM

  • Up to 95% LTV
  • 1 month Bank Statement Program
  • 12 or 24 month Bank Statement Program
  • VOE Only Program
  • 1099 Only Program
  • P&L Only Program
  • Asset Depletion Program
  • Credit Scores Down to 500
  • Foreclosure Bailout

Non-Owner-Occupied Non-QM

  • No Income Verification up to 80%
  • No Income Verification for cash out up to 75%
  • NO DSCR Required
  • Ficos down to 600
  • 5+ Unit Apartment Bldgs.
  • Mixed Use Properties
  • Loans held in LLC and Corps.

Inquire Below Today!

Spring Loan Programs for Investors


Nationwide Fix and Flip Funding Programs:

NO CREDIT REPORT

NO BACKGROUND CHECK/UPPER COURT SEARCH

NO APPRAISAL

CLOSE IN 5 DAYS

ONLY PAY INTEREST ON OUTSTANDING BALANCE


LOWER RATES and MAXIMUM LEVERAGE to NEWBIES

Lender will fund up to 90% of purchase and 100% of rehab with no previous experience up to 75% ARV.

Below are the parameters for the financing program:
90% of Purchase
100% of Rehab
9-12% Interest
1-3 Points
12 month term
No PPP
Up to 75% ARV and 75% AIV
Min loan of $75,000 / Max loan of $5,000,000
Entity Borrowers Only
525 min Credit Score
NO HARD Credit Pull
NO Experience Required
Option for interest being charged only on funded balance
Option for NO PERSONAL GUARANTEE

East Coast Hard Money Loans

We fund 100% of construction and acquisition up to 65% of the ARV.  We can approve the same day and close in 24hrs. Normally we are about 1.167% per month for a 12 month note.  The money is 6 points at the table.  cash out refi investors and buy/hold/refi

Maryland, Philadelphia, PA, New Jersey, Virginia, Delaware, Washington, DC

Leave Your Loan Scenario Below

Never Mind the Cold: Winter Can Be a Great Time for a Move


Courtesy of Pixabay.com.

The need to relocate can arise at any time for any number of reasons. A homeowner may need to pack up and move due to downsizing or because of a job change. If you have a lot of boxes to pack and plenty of furniture, exercise equipment and other large pieces, a moving company is probably your best bet – unless you happen to know a lot of brawny men with time on their hands. But bear in mind that commercial moving is a seasonal industry, and moving companies tend to be a lot busier during the warm months, namely spring, summer and early fall.

It’s not always possible to pick and choose when you’re going to move, because circumstances sometimes dictate when and how quickly you have to do it. Winter may not be the ideal time, but if done carefully and with a vigilant eye on the weather, moving “off-season” can save you money and a few headaches as well.

Be warm, stay safe

On moving day, you’ll be going in and out all day, so be smart about how you dress. If the temperature dips below freezing, keep exposed skin covered and protected from the wind. Wear boots with rubber soles or studs that grip the snow and ice, and apply layers to keep your feet and legs dry and warm. Use foresight and common sense, and leave snow removal equipment (i.e. shovels, ice scrapers, salt, etc.) unpacked in case it’s needed when you arrive.

Track the weather

Of course, the weather can quickly turn a winter move from a great idea into a dangerous venture. Watch the forecast leading up to moving day. If the weatherman predicts snow and ice, track the situation closely in case it becomes necessary to postpone your departure or call it off for safety’s sake. Work with your moving company to plan the safest and most direct route, one that emphasizes major roadways and avoids any scheduled road construction.

Recruit help

When it comes to moving, you can’t have too many extra hands. Don’t hold back – now’s the time to call on all those friends and relatives you helped out on their moving day. Friends can help you declutter, organize and pack everything, make sure all those boxes are properly labeled and, maybe most importantly, be there to lend a smile and an encouraging word when you’ve had enough. The more you can do to prepare ahead of time, the better off you’ll be when it’s time to load up the moving van. Just don’t forget to order plenty of pizza once it’s all ready to go.

The right moving company

Do plenty of online research before hiring a moving company. Take the time to read customer reviews, interview your candidates and ask them for three references. Be sure that whomever you engage is fully insured and licensed – a requirement for any interstate moving company. Once you have a firm estimate in hand, make sure to get it guaranteed in writing, which should include pick-up and delivery dates. Always be wary if you’re asked for a sizable deposit (20 percent or higher), since most moving companies don’t do business that way.

Keep your pets safe

Pets tend to get very skittish when their environment is “invaded” and there’s suddenly a lot of strange people stomping around. The chances of your pet escaping and getting hurt are much greater while the movers are getting you packed up, so find a friend to play pet sitter while all the chaos is going on, or find an affordable boarding service. It’ll be one less thing to worry about on moving day, and that’s worth a lot.

There’s no need to fear moving in winter. It may be cold, but it’s also an excellent way to save money on what can be a very costly expense. With the moving business at a low ebb in the winter, you’re virtually assured of getting the moving date you want.

Guest Post by: Kris Louis kristin@parentingwithkris.com

Credit: Parentingwithkris.com

Off-Market Brentwood Development Deal with Approved Plans on Large Lot in Canyon.


This is a rare opportunity to build your custom Dream Smart Home in Brentwood.

DEVELOPMENT SUMMARY

RTI – Plans Approved and Ready to Break ground. New construction , Modern Cape Cod sitting on a ½ Acre, the 6,000 sq.ft. plans call for 5 beds and 7 baths, formal dining room, media room, open kitchen, bar, master suite with his & her walk in closets and much more. Choose to build with our company and earn a projected 40% ROI in 1 year.

Developer Special! Contact me if you want to check out the plans!

$2.2M Purchase Price

$1.8M Construction Cost

Lender ordered appraisal – ARV – $6.1M

Contact me direct – 323-632-3279 or inquire below.

Quick Business Funding (24-48 hrs)


Unsecured Business Bank Statement Program
– From $10,000 Up to $500,000 Unsecured in 1 Business Day! 
– Factor Rates from 1.15 to 1.499 
– Loan Terms up to 18 Months 
– No Red Tape Lending, very lite documentation requests! 

We offer lite documentation and no red tape, so this is quick money that can help with operating capital, repairs, purchases, or any other business need. We also offer $0 down equipment financing up to $250,000! 

$0 Down Equipment Leasing Program
– up to $250,000 
– No Appraisals required on new equipment 
– Purchase from any Vendor 
– Funds available next day
– Can include soft set up and installation costs! 
– Rates starting at 6.49%

If you would like to apply and see what we can get your business, please provide the following documentation: 

1. Completed Small Business Short Term Funding Application – Edward will send in an email to follow this one. 
2. ID 
3. 3 Months of Business Bank Statements 
4. Month to Date Business Bank Statement up to the day you Apply. 
5. Lease Agreement for the site, or mortgage statement. If the property is free and clear, please provide a letter of explanation. 
6. Signor’s Credit Report that shows all three credit scores. 
7. Business entity formation documents to include 
For Corporations / S Corporations:                      For LLC’s / LLPs         
A. Officer List                                                        A. Member List 
B. Bylaws                                                              B. Operating Agreement  
C. EIN #                                                                 C. EIN # 
D. Certificate of Good Standing or Business License  D.  
Certificate of Good Standing or Business License