How to I.N.V.E.S.T.... 6 Key Points

1. INITIATE/INVESTIGATE-  Initiate the process. Take action. You have to start somewhere! Whether you plan to invest in real estate, stocks or bonds, taking the 1st step is crucial. Put your plan into motion and start investigating your investment opportunities. How is my credit? Am I pre-approved? Can I get a loan to purchase this investment? As 2013 remains a historic year for real estate recovery, this is the perfect time to invest in your very first starter home.

 

 

 

 

2. NEGOTIATE- Always counter! Remember that almost all contract terms are negotiable, from the payment price to the due diligence period. Never settle until you get the terms you want. Sometimes people need to say no a few times before you can get to a yes! An excellent negotiator will make sure that the terms are also reasonable for the seller. Most great deals end in a win-win situation. Show the other side that you care about their needs and are willing to meet them half way. No one should walk away feeling jilted.... "If you do counter, I will counter." ~Daymond John (Successful entrepreneur and multi-millionaire)

 

 

 

3. VALUATE- To set a value on... What is your investment really worth? Have you thought about the future of your investment or hired the proper professionals to appraise, assess, evaluate, measure, determine value? Skipping this step could mean the difference between moving into your 1st home with built in equity or being upside down in your mortgage within the first 2 years of your purchase.

 

4. ESTIMATE- any and all cost involved with your investment. A common mistake among 1st time home buyers is that they fail to estimate the total out of pocket costs. FHA loans require 3.5 of the purchase price to be paid upfront as your down payment. In addition to that there are closing costs or settlement charges associated with the loan. Closing costs in North Carolina can be between $3400-$4000. This includes fees such as loan origination, appraisals, credit reports, a variety of home inspections etc. An awesome lender will point each and every one of these out to you so that you have planned ahead, know what you are dealing with and make sure you are ready to tackle the process head on.

Below is an excel excerpt detailing what the buyer is required to pay out of pocket.

 

So in this case, lets just say the home is $130,000... 3.5 % down

$130,000x .035=$4,550

Down Payment $4,550+ Closing costs $3,908.29

That brings the total out of pocket cost to buyer up to $8,458.29

You want to know all of this before you sit down and make your final loan application.

 

5. SEE it through! Seal the deal! You have done all of your homework so now is not the time to lose focus. Occasionally there are a few issues that can set first time homebuyers back. Sometimes during your investigation process you may find that your credit score is a few points or even alot of points away from what is required to obtain a mortgage loan. Remember that your credit score is only a snap shot of your credit history at a particular point in time. It can be repaired. In some cases buyers may find themselves strapped for cash and can not afford the downpayment or closing costs. This does not mean that you don't deserve to have your own home! There are plenty of programs in North Carolina that will help you make your first purchase. Ask your Realtor about downpayment assistance or foreclosed homes that have special incentives for owner occupants so that the downpayment may be as low as $100.

 

 

6. THINK about all of your success with this investment and start planning your next one. Strike while the iron is hot! Maybe you just moved into a foreclosure and have some built in equity...It may pay off to invest that equity into a rental property and start earning as a small business. People have to live somewhere, so why not become a landlord? You can hire a good property management firm to manage your tenants and repairs for a small fee. Check with your accountant and attorney to get the tax outlook and legalities.

Remember: I-nitiate/Investigate
                   N-egotiate
                   V-aluate
                   E-stimate
                   S-ee it through
                   T-hink about your next investment

Say cheese! Old fashioned Mac N' Cheese (Prep & cook less than 1 hr.)

Ingredients:
1 16 oz. box elbow macaroni noodles (Jumbo noodles used here)
1 stick of butter
1/2 tsp. salt
   pepper
4 Tbl. spoons flour
1 cup carton of whipping cream
1 cup of condensed milk
2 cups of shredded sharp cheddar cheese (Can use 1 cup white cheddar or other cheese)
1 8oz. can of Cambell's Cheddar Cheese (On the soup aisle)


Topping
1/2 cup of Bread crumbs
1 cup of shredded cheese (Divided)
1/4 stick of butter (softened to room temp.)

Directions:
1. Preheat 0ven to 375°F
2. Cook and drain macaroni/ run cold water over it and set aside

3. Melt butter in a large saucepan.

4. After mixing the flour w/ salt & pepper
5. slowly whisk it into the butter (making a light rue as if you were starting a gravy)

6. Combine milk w/ cream and add in gradually; constantly stirring

7. Bring to a boil for about 2 minutes; stirring constantly

8. Reduce heat to low and cook  10 minutes; stirring constantly

9. Add shredded cheese little by little and simmer an additional 3 minutes until cheese is completely melted

10. Add Cambell's canned cheddar cheese to cheese sauce mixture

REMOVE FROM HEAT & Slowly add noodles tossing them to coat...

Pour mixture into a long baking dish and bake in 375°F oven for 15 min...

Sure fire  topping: (Alter this recipe by replacing the breadcrumbs with crushed Cheez-it crackers

1. Once the dish is in the oven, combine breadcrumbs with butter gently mashing and packing down by hand until mixed together well

2. Take 1/2 of the shredded cheese and combine with the breadcrumb mixture

3. After the dish has baked for 15 min. remove from oven and top w/ breadcrumb cheese mixture

4. Bake for  an additional 5 min.

5. Remove from oven and sprinkle with the remainder of the shredded cheese & place back in oven until cheese is melted.

ENJOY

Pick a mall pick apart some stores or pull your credit and pick apart the scores?

Before you run out and buy that new Louis in hopes of adding numbers to your social circle, you may want to consider a more important number. No, its not your social security number, the number of friends you have on Facebook, nor the number of followers you have on Twitter.

It is your credit score!
How can this very important number that helps banks to decide whether or not to lend us money be the most overlooked number in our lives? It is our risk number! ...need a car, credit card or mortgage? You can bet your bottom $ that the bank will know this number before you do! Sad, but true! Why is is that we fail to watch this score the same way we watch our weight or the number of times Lebron scores in a game?

What is a credit score?
According to FairIssac (the guidelines governing credit scoring) it is a number used by lenders to help them decide: "If I give this person a loan or credit card, how likely is it that I will get paid back on time?" A score is a snap shot of your credit at a particular point in time.

Fico is the most widely used score. It is used to make billions of credit decisions every year. Check out the pie graph below to learn how your Fico score is broken down.

                                 Be in the know! Get your free Fico score at www.myfico.

The most important thing that I've learned about credit in my entire career is that, "Credit is a revolving thing" Banks can not make money if they do not lend money, and use other people's money. Unless you have several foreclosures and repos, your credit can be repaired! The question is not how bad your credit is, rather what you are willing to do to fix it? Is it worth devoting your time & energy to this overwhelming task if it means a better interest rate or more suitable loan terms? That's like asking is it worth time to hit the gym! Your Fico score is a vital part of your credit health just as walking/cardio is vital to our physical health, yet getting people to focus and devote time to either of these is like pulling teeth! If you are reading this article, pat yourself on the back because you have taken a step in the right direction! Order your free Fico score and then find out where you stand with the three major CRA's (Credit Reporting Agencies) You are entitled to one free report per agency, per year, and you have the right to dispute any mistakes! If discrepancies can not be corrected or proven right, they must be deleted! The form for disputes should be listed on the CRA's website.
www.equifax.com >>> www.transunion.com >>> www.experian.com

Don't just assume they are always right because CBS news reported in 04' that CRA's were wrong 80% of the time! Stay tuned to my blog for the next step to managing & maintaining your CREDIT SCORE after you have ordered all 3 scores and viewed your Fico score for free.

www.mycreditacademy.org Repairing your credit alone? Sound like a dummy mission? Try my friends at Credit Academy, be sure to tell them Ebony sent you! :)

itty bitty Piggy-A buyers market

This little piggy went to the market...He wasn't afraid to buy! He knew that interest rates and home prices were at an all time low. He knew that studies have shown home owners are happier & healthier since home ownership has a huge impact on net worth, education, civic participation and overall quality of life.

This little piggy stayed  home... He had his TV turned to the news who of course has to show more doom & gloom in order to sell advertisements. He didn't know that owning a home is one of the best ways to build long-term wealth. He failed to observe how that historically a home owner's net worth is 31-46 times higher than the net worth of a renter. He didn't understand why home owners enjoy stable housing cost and tax benefits while rent increases 3% per year with absolutely NO deduction at the end of the year for mortgage interest & property taxes.

This little piggy had enough sense to do the research... He learned that people who own homes vote more, volunteer more, and contribute more to their neighborhoods. Additionally he found out that when more homes in the community are owner-occupied, the neighborhood and its value is more stabilized and there is less crime and deterioration.

This little piggy did none... He just didn't have a clue!

If you see an itty bitty Piggy in the market...

This little piggy said wee, wee, wee...She was speaking with her French Realtor on the phone who verified for her that 67% of American households are owner occupied. Every home purchased pumps a whopping $60,000 into the economy for home improvements, furniture items, cable services etc. and most importantly Housing accounts for more than 15% of the National Gross Domestic Product. Real Estate is and always will be a key component in driving our nation's economy. Say yes to responsible home ownership! Go about it the right way by doing your own research, hiring a competent Real Estate agent to assist you and being truthful with your lender about what you can afford. Foreclosures are growing at a rapid rate, yet they can and have been prevented in some cases. Spread the word to your family and peers!

Keep me honest! Check the facts here for yourself and feel free to email me if you find something to be incorrect or misleading!

• Save up to $2000 per year on your taxes w/ MCC (Mortgage Credit Certificate) Also learn about the Home Protection Program (Protecting Your Home during job or spouse loss): http://www.nchfa.com/
• Housing info. & statistics straight from the source: Realtor.org/homeownership

The ugly truth about renting....

Another Investor opportunity....The fact of the matter is, the media's doom & gloom, job loss, foreclosures, economic outlook, and tons of other circumstances and fears will always cause some to believe that they may never own a home. An investor will buy a home and fix it up just for renters based solely on this preface. Yet, actually behind the smoke & mirrors you will find that the 'renter' is actually buying the home for the 'investor'. What a good deed by the tenant to do his landlord such a huge favor by paying off his asset for him and then continuing to give him a monthly profit! SWOOSH!>>>> NOTHING BUT NET!>>>> For the investor that is! All he had to do was keep the grass cut, have the exterminator spray for bugs and send his brother Joe the plumber over to unclog the commode a few times and he has done his yearly duties and earned $12,000 profit less repairs and maintenance + tax benefits while the renter on the other hand has paid out that same amount as a loss. If you have rented over the last 10 years paying at least $1000 per month, you have just paid a whopping $120,000 toward someone elses investment. The real ugly truth is that while you may choose to rent as the safer option, you are still buying a home, you are just buying it for someone else!

Check out the Rent Accumulation Chart below to see just how much you have contributed to someone elses investment!