My Son is Away

I am blessed with two of the most amazing sons a father could ask for.  One is local and I see him almost daily.  He and his family are such blessings to my wife and I.  They have made us Grandparents to a delightful grandson and fill our lives with the joy and closeness of family.

My other son is away this Christmas.  He has landed his dream job in a city twenty-four hours from home.  We get to talk often and he asks for advice as he carves out a life away from home.  “How do I fix this, Dad?”  “How should I deal with this, Dad?”  How did you do that, Dad?”  Hours of conversation, listening, laughing, more listening, talking, still more listening, have created an unbreakable bond.  It’s one I share with my other son, too, but it’s so much different right now because, my son is away.

He is away to make his life, to start a career, to find himself.  Away, all alone in a place that I cannot visit at the drop of a hat, that I can only remember when I was away, alone, and looking for my place in the world.  He is proud, excited, full of new found knowledge, unsure of himself and confident at the same time.  We are so close, so far apart, so happy, so sad, so different and so alike.

I am transported back to the same time in my first son’s life when he was away, alone and growing into the amazing man he is today.

Christmas is a wonderful time, full of fun, family and friends.  This Christmas will be tough for one of my sons because my son away.  But I know he will flourish, grow, share and he will be a blessing to everyone he comes in contact with, because he, like his brother, is very special and so full of Love, Peace and Joy.  I know because, they are my sons and even when they are not here, they are never too far away from God.

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Twas the Month Before Christmas

merry_christmas

TWAS THE MONTH BEFORE CHRISTMAS

Twas the month before Christmas When all through the town

Not a buyer was stirring, none were to be found

The houses were sitting, all painted and packed

Expecting some clients would write a contract

 

The Realtors were restless, all nervous and jerky

In hopes of a deal after the turkey

With visions of yearly goals now flying by

The brokers and agents just started to cry

 

When out on the floor there arose such a buzz

They sprang to their feet to see why, just because

Away to the fax they flew like a lark

They pushed and shoved you could hear them all bark

 

The paper was streaming from out of the fax

They were counting their profits without any tax

When what to their wondering eyes did appear

But a low ball offer they snarled and sneered

 

With a seasoned old broker, a real estate pro

They knew in a moment it could be a go

He dialed the phone He summoned his team

They cancelled their manny peddy’s and started to beam

 

Home inspection and legal check and well they will test

Now the septic man, air quality, insurance and pest

From the top of the house to the retaining wall

Now test away test away test away all

 

As locust from biblical times they descended

No stone left unturned no feelings they mended

The reports came in and were poured over with fury

The Bad news spread to all parties in a hurry         

 

And then with some coffee fresh pens and a phone

The Mercedes pulled up, the boss was alone

The old broker came in and the optimism grew

They rolled up their sleeves and hoped that he knew

 

We was dressed in a suit from his head to his toe

His gourd full of knowledge, experience and woe

A boat load of tricks he held up his sleeve

He looked like a scientist, in success he believed 

 

The stains on his teeth were from way too much coffee

The stains on his tie were from drooling toffee

His thick bifocal glasses on his nose did hover

The bald spot on head his comb over did cover

 

The deal was shaky the buyers could walk

The lawyers at an impasse the sellers won’t talk

The agents were nervous their income could go

They were left with no choice but to bring in the pro

 

He wasted no time but got straight to his work

He analyzed the scenario and its every quirk

Calling and texting and crunching numbers all night

Resulted in happiness, joy and delight

 

The deal was saved and the buyers could travel

The sellers were happy the lawyers unraveled

A solution was found by the real estate pro

All parties were happy that the deal was a go

 

He jumped in his benz and headed on out

Another deal to save is what he was about

We heard him exclaim as he drove out of sight

Happy Christmas to all and to all a good night!

 

                                                  By: Tim Halladay

Posted in Life | Tagged humor, real estate, twas the night before Christmas parody | Leave a comment

FHA Pulls the “no house flipping” Waiver!

On December 31, 2014 FHA will stop allowing property that has not been owned for at least 90 days to be re-sold.  This waiver had allowed investors to absorb foreclosed properties, rennovate them and re-sell them to a new end user in under 90 days.

Unforutunately this will, once again, slow down the process of absorbing the left over inventory from the Real Estate crash of 2008.  Investors will be forced hold their inventory for at least 90 days if they are going to re-sell to a buyer using an FHA loan.  Investors need to turn their properties quickly in order to satisfy their money partners and to be able to keep contractors and their staffs employed.

Don’t lose heart!  There are still no-seasoning programs out there and always a way for a willing buyer and a willing seller to make a deal!  Here in Malta, Saratoga Springs, Albany, Schenectady and Troy, NY there is a good inventory of Real Estate to be flipped AND a healthy number of buyers to purchase correctly renovated properties!  Victory Funding and Living Well Realty stand ready to help home buyers, investors and sellers with all their Real Estate and Financing needs!

For the HUD letter click here.

Posted in Financing, Investing, News, Real Estate | Tagged albany, Living Well Realty, Malta, mortgage broker, NY Saratoga county, Real Estate Investing, Real Estate Investor, Saratoga Springs, schenectady, troy, Victory Funding | Leave a comment

Found Money – Buy More House!

Everybody knows you can write off your mortgage interest and property taxes, but few people understand what that means when it comes to your monthly income.

If you purchase a home with a $200,000 mortgage at 4.75% interest you will pay $9344.30 in interest the first year. If your taxes are $5500 the total you will be able to deduct from your income will be $14,844.30.

How does that translate to monthly income? Watch this. If you are in a 20% tax bracket your actual cash savings will be $2968.86. Now divide that number by 12 and you are pocketing $247.40 every month.

To translate that tax savings to monthly income, simply change your W-4 withholding with your employer and presto – $247.40 every month in your pay checks.

If you are currently renting for $1300 per month, you can afford a mortgage payment of $1547.40 with NO CHANGE to your lifestyle. That translates to you purchasing a property worth $153,500 vs the $200,000 purchase price! That is $46,500 in purchasing power with zero change to your income or lifestyle!

In Saratoga, Malta, Albany, Troy, Schenectady and the surrounding area in Upstate New York we, at Victory Funding, see a vast difference between the homes listed at 150K vs the average selling price of 200K.

So, don’t be afraid to purchase a property that you would prefer to live in!  It won’t change your lifestyle one bit! Happy house hunting!

Posted in Financing, Free Tips, New Borrower, Real Estate | Tagged albany, education, financing, Global Foundries, Living Well Realty, Malta, Real Estate Investing, Real Estate Investor, Saratoga, Victory Funding | Leave a comment

What Should I Know About Buying a Property that has a Legal Non-Conforming Use?

First, you should know what that means.  A legal non-conforming use applies to a property that is currently allowed in its current legal configuration but does not conform to the zoning that is in place.  One example would be a two family that is in a single family zone.  Typically that property would have been grandfathered, in other words, the property was already a functional two family when the zoning was changed to a single family zone.  Another example would be a single family home in a commercial zone.

So now that you know what that is, you should know that Fannie Mae and Freddie Mac both allow that classification for financing, but only under one condition.  The property must be able to be rebuilt in case of total destruction with no restrictions.  The catch is that in most cases a property that burns to the ground must be rebuilt to current zoning regulations or a zoning variance must be obtained.  Obtaining a variance will constitute a restriction according to Fannie and Freddie thus making the property ineligible for conventional AND FHA financing.

A local bank may be able to do that deal, but you must always think about your seller when you buy any property.  Remember, you make you money when you buy it, you  realize your profit when you sell.  Buy wrong you will never make your money when you sell.

I recently ran into this very problem for a client purchasing a property in Scotia, NY, but have seen similar properties that fall into this category in Malta, Saratoga Springs, Albany, Troy and Schenectady, NY.

Ask lots of questions when you are buying a property and work with professionals that are knowledgeable and that you trust!  Call  the premier NY State Mortgage Broker located in Malta, NY Victory Funding and your Concierge Real Estate Brokerage Living Well Realty for professional, expert help and you will have access to our team of real estate professionals that are second to none.

Posted in Financing, Free Tips, Investing, Real Estate | Tagged albany, investing, Living Well Realty, Malta, mortgage brokerage, Saratoga Springs, schenectady, troy, Victory Funding | Leave a comment

Flip Your First House!

 

Flip House

Everyone, it seems, has wanted to flip a house at some point in their lives.  Most talk about it, some do a little research, a few take courses on how to do it, but only one or two in a thousand will actually do it!  It’s not rocket science so let’s put it in a nutshell.

First and foremost you need to find a property with enough equity to absorb the costs of buying, renovating, carrying and selling the home.  I don’t mean to be cavalier about this step, but it’s not that hard to do if you understand what makes a good deal.  Here’s the secret; look for motivated sellers and make offers!  Who is a motivated seller?  A bank, an estate, a homeowner who can’t afford to stay and doesn’t want a foreclosure on their credit report or a homeowner whose house is in need of repair.  Of course there are more, but I think you get the idea. YOU MAKE YOUR MONEY ON THE PURCHASE – YOU REALIZE THE PROFIT WHEN YOU SELL.

Next, you need a contractor – could be you – that will not charge you retail and that you can trust.  This sounds like a daunting task but there are ways to make your life easier.  First, always use referrals.  If you don’t know where to look, start at a lumber yard – not a big box store – and ask who they would recommend.  Their reputation is on the line and they won’t risk that.  Another key is to set the expectation early and upfront.  Time frames, costs and frequent communication will keep you out of trouble.  This is a process and you will have failures.  Monitor the job personally, often and with solid metrics.  At the earliest sign of trouble take action to stop the bleeding.  Hopefully those will be minor adjustments, but don’t be afraid to cut your ties and find another contractor.

Be realistic about carrying costs.  If your schedule looks like you can reach the other end in 4 months then plan on 12.  If you under promise and over deliver, you will be a hero.  The other way around and you will be the scourge of your stakeholders.

Sell it fast!  Remember, hanging on to this property is costing you $100 or $150 per day and preventing you from doing your next one.  When you evaluate the end sales price find the number that you can expect to move the property in under 30 days.  Holding out for the last five grand could cost you tens of thousands of dollars in carrying and lost opportunity.

Don’t fall into analysis paralysis.  Do your homework, but take the first opportunity that meets your criteria.  If your numbers show you could make 30k and you end up with 10k you have conquered the beast!  How many people go to college and expect to EARN money as part of the learning process?

In Saratoga County, Malta, Albany, Troy, Schenectady, Saratoga Springs and the entire Capital District Living Well Realty and Victory Funding are two companies that are on the cutting edge of helping investors flip homes.  Call Tim today at 518-899-5000.

Posted in Free Tips, Investing, Real Estate | Tagged advice, albany, flip, foreclosure, great tips and advice, How to Flip Houses, investor, Living Well Realty, Malta, real estate investors, Saratoga, Saratoga Springs, schenectady, tim halladay, top Mortgage broker, top realtor, Victory Funding | Leave a comment

Cash out Refinances for Investors!

If you, like many investors, are sitting on a ton of equity, but haven’t been able to make use of it, here is your chance!  I work with bunch of investors that own properties that are free and clear of any mortgage.  The cash flow is great, but in order to take advantage of this great buying opportunity, many investors want to pull some cash out! Another scenario I often see is that investors buy properties for cash and want to refinance them immediately to get their cash, or a partner’s cash, back out.

So, how can we do that?  There are two programs currently available for investors.  One allows cash out on 1-4 family investment property up to 70% loan to value (LTV).  If the investor owns up 10 financed properties we can do that mortgage for you IF you have six months PITI (principle, interest, taxes, insurance) reserves for EACH property.  The reserve requirement drops off if there four or fewer financed properties.  Two things to note here; 1) if you plan on doing any purchasing, the order in which things are done can make a huge difference and must be considered and 2) The reserves can be vested retirement funds as long as they allow for emergency withdrawals for mortgage payments, and most do.  You must have owned the property for at least 6 months in order to us the appraised value.

The second program is rightly named a deferred financing program.  This program is for the investor who purchases a 1-4 family with cash and wants to recover that cash quickly.  There is no minimum time you must own the property, but the cash out is restricted to the total purchase price and initial closing costs.  The appraised value is used so if any work is done that is taken into consideration.  The maximum LTV is still only 70%, but there is no waiting period of six months to begin the process.  This allows investors to take advantage of cash deals that come along without the, sometimes arduous, task of waiting for a lender to close the deal.

Combine the two programs and you can purchase up to 9 investment properties using one free and clear property to start the ball rolling!  Use the equity in your home or a hefty 401K loan to kick it off and you’ll be the Real Estate Mogul you always wanted to be!

I know in our area of upstate NY, Saratoga Springs, Malta, Albany, Troy, Schenectady, and Saratoga County we have several great investment property opportunities waiting for investors to pounce!  Take advantage of today’s low interest rates, copious amounts of inventory and the expertise of our Originators at Victory Funding 518-899-7700 (www.victoryfundingonline.com) and Realtors at Living Well Realty 518-899-5000 (www.livingwellrealty.com) and pursue your Real Estate dreams!

Posted in Financing, Investing, Real Estate | Tagged albany, investor, investor financing, low interest rates, Malta, mortgage, real estate, Saratoga, Saratoga Springs, schenectady, troy, Victory Funding | Leave a comment

Rates are Best in 3 Months! What are YOU Waiting For?

Snow melt? Even Lower Rates? More Homes for Sale? Saving for a larger Down Payment? Whatever you are waiting for it could cost you a fortune! Even though we are experiencing a small down tick in rates, the trend is still up! Home values are going up and inventory is going down. Your best opportunity is to get into the market today!

If Analysis Paralysis is keeping you on the sideline consider this. If, or when, interest rates increase by 1% and home values appreciate by only 4% in the next year, you will lose $30,000 in purchasing power! Take a look at homes that are on the market today for $210,000 and then look at home for sale at $180,000. That’s a huge difference.

If you think this can’t happen to you, take a look at the past year. Yes, rates are up about 1% and values are up over 4%. Here in Malta, Saratoga Springs, Albany, Schenectady, and Troy, NY that is exactly what has happened.

Don’t wait! Take advantage of the great rates and plentiful property. At Victory Funding we offer USDA, VA, FHA, Conventional, Jumbo and Portfolio loan products at very competitive interest rates along with the expertise to help you through today’s complex maze of regulations.

Cross the line today!  Become a Homeowner!

Posted in Financing, News, Real Estate | Tagged best interest rate, Conventional, Expert Advice, FHA, financing, mortgage, real estate, usda, VA, Victory Funding | Leave a comment

USDA Eligibility Maps to Remain In Place…For Now!

The maps were supposed to change at the beginning of the year, but have now been left in place until October 15th 2014.

USDA mortgages allow income qualified borrowers purchase homes that are considered “rural” with 100% Financing. They allow up to 6% of the closing costs to be paid by the seller (other wise known as seller concessions) and offer interest rates that are similar to FHA and VA and tend to be about .5% lower than conventional rates. Additionally, the mortgage insurance is about 1/3 that of FHA and about half that of conventional loans.

In our area of Upstate NY it means that most of Malta, Ballston Spa, Saratoga County, Saratoga Springs East of the Northway, Voorheesville, Sand Lake and many other areas remain Eligible under this program.

This presents a wonderful opportunity for new buyers to own a home and, hopefully gets them off the fence!

At Victory Funding, A NYS Licensed Mortgage Broker NMLS #49846, we are USDA specialists. Give us call to get into your new home for very little money! Living Well Realty, our sister company, will work hand in hand with you throughout the whole process. If you are already working with a Realtor, Great! Victory Funding partners with top producing Realtors looking for experts to help their clients!

Get off the couch and buy your dream home now while interest rates are low, housing inventory is plentiful and USDA eligible areas are vast!

Posted in Financing, News, Real Estate | Tagged 100% Financing, Ballston Spa, First Time Homebuyers, Living Well Realty, Low rates, Malta NY, mortgage, mortgage broker, Saratoga Springs, USDA Loan, Victory Funding | Leave a comment

Holy C.O.W.! [Cost of Waiting] In Today’s Market!

Cow

$30,000 is NOT chump change!  However, that is what you could be giving up if you wait ONE YEAR to buy a piece of property.  That’s right $30,000!  Here’s the math…

If interest rates go up 1% and property values increase by 5% the homes you are looking at this year for $210,000 will be a thing of the past.  Next year you will be looking at $180,000 homes for the same payment!

The principle and interest payment on an average priced home of $210,000 at 4.5% interest for 30 years with a 4% downpayment is $1021 per month.  If we bump the interest rate just 1%, which is entirely likely, the payment jumps to $1145 per month.  So to compare apples to apples we must find the loan amount that matches that payment.  That number is $187,500.00.  If we take a 4% appreciation into account then today’s house that is on the market for $180,000 will be worth $187,500 next year.

Are you renting right now and thinking “maybe if i wait a year I can save up more money and afford a larger home”?  If you are, you are among the tens of thousands of people that are making the same mistake.

Beat the system and get out of your comfort zone!  Join millions of people who are homeowners and begin to realize the amazing benefits, financially and intrinsically, who have taken the first steps towards true wealth, home ownership!

Posted in Financing, Free Tips, New Borrower | Tagged buyer, education, financing, real estate, tips | Leave a comment