angiejohnston

The Four Stages of Renovation

When it comes to renovating a property, every real estate investor has his or her own system. However, any house flipping veteran will tell you that some areas of the home require immediate attention while other projects can wait. Here’s a quick 4-stage breakdown that will keep your operations running smoothly at all times so that you can pass inspections.

Stage 1 – this phase is laying the groundwork for future construction.

Have all of your blueprints, permits, and land surveys ready.
Be sure to order a portable dumpster and portable toilet for the construction workers.
Repair the house’s foundation.
Check for mold and pests.
Inspect all of the trees, and remove any showing signs of advanced rot.
Address the septic system problems, if any

Stage 2 – at this stage, you need to get ready for your first wave of inspections.

Fix the windows and window panes.
Make any changes to the roofing, specifically to the gutters, shingles and the soffits.
Replace the siding of the house if needed.
Early stages of electrical work and plumbing.
Prepare the heating, venting, and air conditioning (HVAC).

Sage 3 – this is where you start to turn the house into a home.

Install any exterior additions such as decks, porches, or a garage.
Put in the insulation (and prepare to have it thoroughly inspected).
Install the wall trimming.
Set up a fireplace at this stage, if so desired.

Stage 4 – this is the home stretch. You are almost there!

Finishing touches such as the interior and exterior paint.
Don’t forget to implement your landscaping plans from stage 1.
Cabinets, flooring and countertops go in last so as to avoid unnecessary damage.
The appliances need to be hooked up.
Finish the […]

3 Ways to Sabotage Your Sale

 

Investing in real estate often means purchasing and renovating distressed houses. When it comes to selling the home, it may seem that the hard work is over. While that’s mostly true, making mistakes at this stage can mean not getting the most out of the effort you’ve put in thus far. It can be easy to make these mistakes; and they can cost you.
Overpricing for the Market
Investing in real estate can be a stressful ordeal. Obviously, you want work and money you’ve poured into a property to pay off, and pay off big. However, it can be easy to assign too high a price to a home you’ve spent so much effort to renovate. Be sure to have a current comparative market analysis for the home, and base your list price on the hard numbers within it.
Ignoring Curb Appeal
Rejuvenating a distressed home can take its toll on the property. You may need to address damage to fences, lawns and landscaping as the final step in your renovation before you list the property. Also, pay attention to outdoor features such as the mailbox, house numbers and porch light. They may need to be repaired, repainted or replaced to make the home look its best.
Not Clearing the Air
Be mindful of the smells your remodeling has created. While potential buyers love the look of fresh paint and new carpeting, no one wants a home that smells of chemicals. Air out the home thoroughly after you complete the work, and as often as possible while it’s on the market.
Do You Need a Hard Money Loan in Atlanta to Fund Your Next Investment?
If you’re a real estate investor who’s looking for a hard money loan in Atlanta, we may be […]

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.

Why?

Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take […]

Should You Add a Sunroom to Your Investment Property?

Adding a sunroom to your investment property may be a bad idea—especially if you’re looking for a quick turnaround with a hefty profit.
Should You Add a Sunroom to Your Investment Property?
The numbers don’t lie: Adding a sunroom to your investment property will get you, on average, about 50 percent of the project’s cost back when you sell. The average cost of building a sunroom is about $73,000, which could be better-spent elsewhere.

Naturally, every house—and every buyer—is different; it could pay off differently for you.

But like home offices, a sunroom looks like an inefficient use of interior space to many buyers.
What’s a Better Investment?
A better investment might be a deck, a mother-in-law suite, or an extra bedroom on the first floor. Even without adding anything to the house, making big improvements in the kitchen—like improving an inefficient layout—or the bathroom could bring you far more bang for your buck.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

 

What’s a Short Sale?

If you’re like many people—particularly new real estate investors—you’ve heard the term “short sale” fairly frequently.

But what is it, and could it be something you should look into when you’re investing in property in Atlanta or the surrounding communities?
What is a Short Sale?
While “short sale” sounds like it refers to the amount of time you have to close on a deal, a short sale is something very different; it refers to a person selling a property for less than what they owe on it. In a nutshell, they’re shorting the lender some of the money they owe.
Why Do Banks Do Short Sales?
Many lenders would rather get something for a property than nothing at all, and if it makes financial sense, they’ll agree to a short sale. Typically, this is how it happens:

The homeowner (who actually doesn’t own the home; he or she is still paying the bank for it) realizes that the house is headed for foreclosure
The homeowner asks his or her lender to agree to a short sale, and the lender does
The homeowner puts the house on the market and does all the work of selling the home, saving the bank from the hassle of foreclosure (and, in many cases, saving his or her own credit in the meantime)

The average foreclosure costs a lender about 25 percent of the home’s loan amount, so if we’re talking about a $200,000 loan, it’s going to cost the lender around $50,000 to go through the foreclosure process. If they sell the home for $151,000, they’ve saved money. (That’s a little bit oversimplified, but it’s the idea behind a short sale.)
Should Real Estate Investors Buy Short Sales?
As with any other property, it pays to do your due […]

Do Decks Add Value to Investment Properties?

If you’re flipping a house, you want to get the best possible return on your investment—and one of the ways to do that is to add features buyers really want (like these great kitchen design features for 2017).

But what about a deck?
Do Decks Add Value to an Investment Property?
In many cases, adding a deck can tack value onto a house you’re selling. There’s a caveat to that, though: the deck can’t be too extravagant, and it depends on the house’s location.

According to U.S. News and World Report, if you add a wooden deck to your investment property, you’ll recoup about 81 percent of your investment when you sell. Bear in mind:

The deck can make the house more appealing to a wider range of buyers because it helps them feel as if the home is larger (it’s added living space!)
You may be able to sell the house faster
You probably won’t be able to add the cost of the project to the home’s price and get away with it, unless you’ve made other cost-effective improvements that even out your profits

Wood vs. Composite Materials
Typically, building a deck with composite materials rather than wood can cost up to 50 percent more.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan […]

Playground Equipment and Your Liability as a Landlord

If you have playground equipment on your rental property, you may be wondering whether the risk of a child (or adult) getting hurt outweighs the benefits. Whether you’re renting a single-family home with a backyard play structure or managing a multi-unit rental with a community park, you’ll want to know what your responsibilities are as a landlord. It is possible you could be held liable for any injuries that may occur.

Let’s face it: children are accident prone – especially on playgrounds. It should always be assumed that there’s a chance for injury. If a child is injured on your property, you may be held liable, but there are some things you can do to protect yourself.
Inspect & Repair Playground Equipment
Inspecting and repairing the play structures and equipment on a regular basis is necessary. You’ll want to check for things such as rusting metal, rotting wood, and the overall strength of the equipment. Repair any defects immediately and complete routine maintenance. If there is any evidence of neglect – you may liable for injuries if someone is injured.
Post Notice of Risk
Posting a sign that tenants play at their own risk is necessary. While this is more common in an apartment setting, you can still post in a single-family unit. Protect yourself even further by including it in your lease agreement. This does not relieve you from your duty of keeping the playground equipment in tip-top shape.
Check Your Insurance Policy
Verify that you’re covered for any injuries that may happen on your property. You’ll need this anyway, but make sure you cover your bases. Even if you take the best care of your play equipment – accidents can happen.
Do You Need a Hard Money Loan to Buy […]

More on Landlords and Accepting Section 8

If you read our last post about accepting Section 8 vouchers, here’s even more information that you’ll need to know before you buy a rental property. These are some common issues landlords run into.
What Happens When You Accept Section 8?
Here are a few more things you need to know about working with Section 8 properties.

Section 8 doesn’t cover security deposits. Security deposits are not paid by the Housing Choice Voucher Program. In addition, the laws are different for Section 8 tenants and how much you’re able to charge for a security deposit. You’ll want to check into your local housing authority for verification. Some landlords waive the deposit completely, but the result is usually not favorable.
You’ll be required to comply with frequent inspections. Annual health and safety inspections by the Public Housing Authority are required for you to maintain your Section 8 status. As needed inspections are also conducted when there is a complaint by a tenant. An extensive 13-point checklist must be passed for the government to continue your payments. If you’re not in compliance, your tenant can find other suitable housing.
You might be in for a lot of paperwork. The application and re-certification process for landlords can be tedious. You’ll also find that you must be highly detailed and accurate with all your accounting and documentation. One mistake could be costly.

Do You Need Hard Money to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can […]

If You’re a Landlord, Should You Accept Section 8?

As a landlord, you may be wondering if you are required to accept Section 8 vouchers. Housing laws vary from state to state, so if you’re not from Georgia, here’s where you need to go to check out our requirements: http://www.dca.state.ga.us/housing/RentalAssistance/programs/downloads/LandlordGuide.pdf.
What is Section 8?
Section 8, or the Housing Choice Voucher Program, is government assistance for qualifying low-income individuals or families. The voucher subsidizes a portion of the tenant’s monthly rent; allowing them affordable housing.

So what can you expect if you participate in the Section 8 program?

Timely payments. The government will pay their portion of the rent on time. You can count on a consistent monthly income coming in, and you won’t have to worry about the entire amount being late.
High demand. The likelihood that your property will sit vacant is decreased, as you are increasing your options for potential tenants. Housing voucher tenants are also more inclined to rent for longer terms, mostly due to their financial situations.
Marketing incentives. You’ll be able to target your marketing to local housing authorities by using old-school marketing methods such as flyers, as well as online at GoSection8.com. You won’t have to pay expensive advertising fees.
Prescreened tenants. Housing authorities prescreen applicants with a criminal background check, as well as verify their income levels. You’ll want to do your own screenings, too, but this pre-check gets you off to a good start.

Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that […]

5 Kitchen Design Trends REIs Need to Know About in 2017

As a real estate investor, you already know that a great kitchen can sell a house—so what makes a great kitchen?

Check out 2017’s five hottest kitchen design trends to find out.
2017 Kitchen Design Trend #1: Grays, Not Whites
Gray is “in” right now, especially with millennials hitting the market as first-time buyers. Combined with rich, stained wood, it’s warm and inviting—exactly what new buyers want.

2017 Kitchen Design Trend #2: Hydraulic Cabinet Doors

Hydraulic kitchen cabinet doors are space-age space-savers, and it turns out they’re just what homebuyers want in 2017. With the push of a button, the door opens in an upward direction and leaves plenty of room in the rest of the kitchen.
2017 Kitchen Design Trend #3: Funky Sinks
Forget stainless steel and think colored enamel. A splash (pun intended) of color in a neutral kitchen makes a huge difference to buyers.
2017 Kitchen Design Trend #4: Big, Bold Fixtures
Oversized light fixtures can be pretty amazing in a kitchen, as long as they’re not clunky or obtrusive.
2017 Kitchen Design Trend #5: Ample Kitchen Storage
Don’t leave any wasted space in the kitchen; you can even turn a false drawer into a great place to stash oddly shaped kitchen utensils.
Do You Need a Commercial or Residential Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved […]