Mortgage and Fixer Uppers – Pro and Cons

Businessman's hands with calculator and cost at the office and F

Businessman's hands with calculator and cost at the office and FPeople from all walks of life will wander into the world of real estate without the initial intention. The urge to invest in a property that you could call your home for life is hard to resist. Not only this, but more and more homebuyers are looking into what are known as “fixer-upper” projects. These projects are unique in the sense that they provide the buyer with the freedom and creativity to do what they want with the property.

Once they have fixed it up and restored it into a condition that neatly slots into the real estate market, the financial gain opportunities will begin to transpire. If you are to succeed in this type of property investment as a newbie or simply want to educate yourself more on the subject, there are a few things you ought to take note of.

Fixing Up a Home for Financial Gain

Well, why not, right? A lot of people are seeing an opportunity and grabbing it with both hands. By opportunity, we mean securing a low interest rate on a property with a fairly low net worth and capitalizing on that opportunity to restore, renovate, and reap the financial rewards. It is possible to make thousands, if not hundreds of thousands depending on the type of “fix-up”, of dollars by selling the property on when interest rates peak.

Selecting a Mortgage for a Fixer Upper Project

A project of this kind is not just like any other. There is some risk attached in the sense that you may struggle (which is highly unlikely in a market where millennials are house hunting in their millions), or that you may not rake in as much of a profit as you would have initially hoped.

Nonetheless, the prospect of having something fun to work on and more importantly, something that you are passionate about, is exciting to say the least. In the event that your funds are not exactly prime for investment purposes, there are a few things to consider mortgage-wise.

Here are the most popular financing options for property purchases of this kind:

Standard 203(k) loan - Suitable for most types of home repair and improvement.

Limited 203(k) mortgage – If your home repair project is limited to minor improvements, such as repairing gutter pipes, this type of mortgage will be best suited.

Things to Consider with Fix-Ups

Don’t let yourself fall into a financial pitfall unnecessarily. If you discuss your mortgage financing options with an expert, you can better understand if you would suit a loan that is flexible or one that has a fixed interest rate. Remember that the home improvements will be assessed by the lender to ensure everything is being dealt with fairly and professionally.

The method of “fixing and flipping” a home is one that property buyers have been gaining profit from for years. Doing it successfully requires proper financial planning. On that note, it may be worth considering your financing options to ensure your financial stability for the future.

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Successful Garden Tips for Summer

Hydrangea House

Hydrangea HouseAre you thinking about selling your property? If so, it is your job to make the residence appeal to potential buyers. The exterior of a property is the first thing that people will see when they are pursuing the real estate market and so, it is crucial that the grounds on which your property stands are well-maintained. A flawless garden will complement the facade and will indicate that you take pride in ensuring your home is in good condition, from the inside out.

While you could hire a professional gardener to water the plants, de-weed the grounds, and take care of the landscaping in general, it is not entirely necessary. By sparing a little bit of time to maintaining your garden, you can feel confident that your real estate listing will attract more buyers.

The following tips, when put into action, will not take up much time. They will, however, make a big difference to the appearance of your garden. So, let’s dig deep into the ways you can keep your grass and plants looking good throughout the summer months:

  • Water in the Morning - There are numerous benefits associated with watering plants in the morning, rather than in the middle of the day or at night. The sun is at its strongest between 12:00 pm and 3:00 pm therefore avoid watering your plants at this time. Direct sunlight absorb moisture from the soil and leaves, causing it to die. Aside from the fact that the sun will not be as strong during the morning, the water will absorb deeper into the soil if you take the time give your plants a good drink in the morning! Once absorbed into the soil, the water will make its way to the roots of the plant, which will encourage deeper rooting. As a result of this, the plant will thrive, and appear healthier and brighter, even when exposed to the sun at the hottest parts of the day.
  • Keep Potted Plants in the Shade – The main reason why you need to keep your plant out of the sun is to preserve moisture. A dry plant will not live as long a life as a moist plan, so try to find or create a shaded spot where the plant can grow and blossom with a simple watering in the morning. Of course, this depends on what type of plant you are growing (we will go into this next) however; shaded gardens require much less maintenance.
  • Research Plants to Grow – Fertilization methods differ for various plants, as well as the preparation methods and maintenance. So, how do you know what will transform your garden into a vibrant natural oasis? Well, every little helps, from reading a gardening book to researching online. Alternatively, you could participate in a gardening class and learn about plant growth, germination, and tissue culture.

Aside from the garden, dedicate some time to maintaining the paintwork on the property’s exterior, as well as the interior. Property value will soar when the home is cared for properly, therefore the time you spend preserving its appearance will be more than worthwhile. Since your buyer will be inspecting the house during the primary visit and final walk through, preparation is key to ensuring you receive the best offer.

 

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Three Alternatives to Your Average Grass Lawn

Maintaining a grass lawn takes time and effort even under the best of circumstances. It needs to be watered regularly to stay green, and mown regularly to keep it from becoming overgrown. But in California lately, both of those tasks are getting harder and harder. Gas prices are soaring, making it more expensive to operate a gas-powered mower.

More importantly, though, the state is also in the midst of what’s turning out to be the worst drought in over a millennium. Therefore, watering the grass must be done sparingly, and keeping it green and luscious is off the table. So what can you do to keep your lawn green and luscious in the midst of these crises? Here are three grass alternatives, that look great, but require less maintenance. (more…)

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Automate Your Home…Today!

It’s amazing to think that all the automation features you learned about for the “Home of the Future” are actually available to today’s homeowners. Almost every function in your home can be controlled by a switch, device or smart phone, and there are considerable benefits for automating certain operations. You can make your place more secure, save on energy bills and home insurance, and generally make everyday life more convenient around the house. Have a look at some basic information if you’re ready to get started with home automation.

Start with a smaller-scale system. You don’t have to install a household-wide system to gain the benefits of home automation – and it’s an especially unwise move if you’re new to this type of technology. Go with some of the basics, such as: (more…)

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Winterize your home

Winterize your home - Paramount Equity®

Winter Decorations - Paramount Equity®Winter is here: Fido is wearing his Christmas sweater, your 2-year-old is bundled up like the Stay Puft Marshmallow Man, and you fear going to get the mail. Your home is by and large the most important investment in your life. In order to save money, keep your family warm, and keep up with your biggest investment, here are five tips to help you properly winterize your home this season.

  1. Work on the Inside — When surveying the inside of your home, look for cracks around the windows, walls, and outlets. According to the Earthworks Group, the average home in the U.S.has leaks/holes which can amount to a nine-square-foot area. So, how do we plug these potentially expensive holes? Well, you can use a standard caulking gun in instances where you can see a hole, crack, gap, or feel a draft on a windy day. As well, door sweeps can help to curtail drafts from under the door. And for inefficient windows, a company such as Duck Brand offers weatherization seals/insulation kits that will save you energy (and money). (more…)
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Fun Housing Facts That Can Save You Money

Fun housing facts - Paramount Equity®

Saving for a House - Paramount Equity® If you are the type of person that wants to make your home the best that it can be, then you should take a look at these fun housing facts. There are so many simple things that you can do to enhance your home without breaking the bank.

Watering your lawn

If you want to get the most out of the water you use to water your lawn, then you should make sure that you do it after the sun has set. When you water your lawn during the day, you end up using more than you would if you did it at night. The sun makes the water evaporate very quickly – the more sun there is, the less water your lawn actually gets.

Winter sealing

It is common knowledge that people use (more…)

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Five Essentials for Building Your Mancave

Paramount Equity® - mancave

Mancave - Paramount Equity®They are the subject of countless home decor shows. Maybe you even know, and envy, someone who has one. But what is a mancave? A mancave is a space to relax and escape the stresses of work, family, and responsibilities. It is a space for men to be men and a space to call your own. While the lady of the house may dictate the form and function of the rest of the home, the mancave is the place for the man of the house to indulge his own style and interest. In short, your room is whatever you need it to be. When building your man cave, consider these top five essentials.

Comfortable Furniture

This is no place for straight back chairs and priceless antiques. Your mancave is a place for relaxation and lounging. Outfit it with comfortable, sturdy furniture such as leather recliners and (more…)

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Home Theatre on a Budget

Home Theatre on a budget

Home Theater- Paramount Equity®Homeowners everywhere are looking for ways to enhance the look of their home without breaking the bank. A home theater is a great option. But it is important that you decide on how much money you have to spend on your home theater before you even start looking at purchasing equipment. Another thing to think about is what you really want in your home theater setup. You can set up a home theater on a budget very easily if you plan ahead.

Here are 5 Top Things to Help You Get Started on Your Home Theater:

  1. Take a look at your room size. If you are working with a small area, remember to think about an appropriate screen size. You definitely want to have enough room to set up your home theater without it looking all cluttered. You can choose from a sound bar or a home theater in a box. Each of these are designed to provide you with many hours of entertainment pleasure, and it is (more…)
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