The San Diego home market is home to some fantastic homes in almost any price range. There are a lot of first time buyers here and there are some definite things that these buyers should keep in mind when looking for their first homes. Buying your first home is an exciting experience. After renting for many years the idea of owning your own home has a lot of merit. But there are also a lot of things that are associated with owning a home that first time buyers should be prepared for that they will not have had to worry about until this point. There are many responsibilities that suddenly crop up once your name goes on the home.
Budgeting is a huge part of this process. Where before, as a renter you were not responsible for the upkeep and repairs that a home needs over the course of time, you will now have to make financial allowances for these. There is also the issue of property taxes, more monthly bills and any major repairs that need to be done. This is why it is important to budget properly for a home purchase. Many people when buying their first home have the tendency to purchase the best home that their money can buy, this can be a mistake. Remember that you are going to have quite a few additional bills on a monthly basis so you need to asses those bills and build them into your budget. Then, there is the mortgage.
As the basis of any home purchase, the mortgage is the most important monthly bill a home owner has. However, there are so many different mortgages out there you will need to be sure to find the one that is right for you. It is best to find a fixed rate mortgage for your home as adjustable rate mortgages can have the monthly payments increased over time leaving you less money for other necessities. A fixed rate stays the same over the life span of the mortgage thereby giving you a firm base of what you will have to pay in terms of mortgage payments. Remember, the more expensive a home you buy, the higher the payments will be and the mortgage payments should never have the ability to cripple you financially. Choose a home with acceptable monthly payments which will still allow you to purchase the necessities of daily life and have some money left over for savings and home repair bills.
1-800-CASH-TODAY Home Buyers has been in the home-buying business throughout Southern California for the last 15 years with purchases over 100 homes per year. In a time and place where the ever-increasing threat of losing money in real-estate is prevalent, 1-800-CASH-TODAY Home Buyers has remained fortunate in their ability to evaluate properties correctly, purchase at the right price and resell for a profit.
Here are some of the more important issues 1-800-CASH-TODAY Home Buyers looks at when investing in the Southern California marketplace:
1. Cash availability to fund the deals found.
2. Cash availability based off of LTV, not credit.
3. Determining whether the deal is good or not.
4. Exploring the multiple facets of how to attract deals.
5. Understanding which investment strategies to pursue: flipping, rehabbing, options, lease-options, owner financing, sell as rental turnkey.
Out of all of these, the most important aspect is being able to determine whether the deal is good.
How do we know if a deal is a deal?
While capital is a crucial key, being able to ascertain whether a deal is good or not is the key to keeping our capital investors happy, bringing more funds forward and solidifying the returns our capital investors are used to seeing, which typically ranges from 10-15%.
Being able to determine whether we can turn a profit on a particular deal AHEAD OF TIME is a critical part of the decision making process. Not only are we proud in our home buying capabilities, we are proud that we realize the profits that we do and secure our capital investors ROI as promised.
Therefore, when we create a fail-proof system for evaluating and purchasing houses, the likelihood of 1-800-CASH-TODAY Home Buyerss success rate remains higher than most other home-buyers in the marketplace.
So, how do you know if it's a good deal?
Since we buy REOs (real-estate owned or bank owned properties), directly from builder's (called "builder closeouts") as well as from individual sellers, we have to utilize different investment strategies to profit from them. We like to break them down into our two most common "Buy/Sell Profit Models":
1. Buy for cash / Sell for cash (either wholesale/retail or wholesale/ wholesale)
2. Buy for cash / sell with lease option (either short long term seller financing)
After breaking it down to this level, the way I make a buying decision is pretty simple:
1. A property becomes available for review.
2. We run it through two different spreadsheets for each of the Buy/Sell models above.
3. If we can't see my way through to making a profit with at least one of them - we pass.
Otherwise, it's a potential BUY, and I'll spend a bit more time to confirm the data that came with the lead to make sure my numbers are accurate. Then and only then it's time to see the Seller, view the property, complete the negotiations and get the deal signed up.
We evaluate properties ahead of time through spreadsheets to protect our cash-backed investor's funds as well as to secure the highest return on investment for all parties involved.
In our experience an average investor is too anxious to make a deal, especially if the leads aren't coming in often enough to allow them to "cherry-pick" the deals they want. 1-800-CASH-TODAY Home Buyers receives so many properties from our advertising, referral-systems, direct relations with banks and builders looking to liquidate that we have an over-abundance of leads.
Here is where most other investors fall short in realizing profits from every real estate purchase bought:
" They don't account for all anticipated expense items.
" They only look at best case scenarios and don't review negatives, what-ifs, gotchas, etc.
" They plan for overly optimistic sales time or sales prices and don't plan for longer sales period and/or lower price points.
" They don't plan for not being able to sell (for cash) and having to roll over to a different profit model (lease/option or owner financing).
" They don't plan for tenant/buyers not exercising their options (or owner financed buyers not refinancing their loans and paying us off), moving out and leaving us with the expenses of cleaning the place up, incurring higher than planned vacancies, extra advertising expenses
" They don't plan on being subjected to unfavorable market fluctuations for Buy/Sell models that stretch over a period of time.
So, when 1-800-CASH-TODAY Home Buyers goes through the motions and runs numbers through spreadsheets, this ENFORCES the discipline of (a) full accounting of all applicable expenses, and (b) playing ALL possible scenarios, good and bad... but playing them in advance, before committing to purchasing a property.
Trust us, it's a lot better to play bad case scenarios and account for all expenses BEFORE we buy the property than AFTER.
With over a decade of buying houses, 1-800-CASH-TODAY Home Buyers is geared towards even greater successes in a marketplace that has the best buying opportunities ever. Should you be looking for a safe, secure and higher than average return on your money, there is no better real-estate buying power as that which backs 1-800-CASH-TODAY Home Buyers abilities in the Southern California marketplace.
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Doug Jones has sinced written about articles on various topics from Home, Cars and Home Management. Doug Jones is a longtime realtor specializing in . Doug's experience and commitment to customer service have distinguished him as a top San Diego. Doug Jones's top article generates over 368000 views. to your Favourites.
Ford has sinced written about articles on various topics from Small Business, Home Buyers Guide and Real Estate. www.800cashtoday.com has many options for sellers to consider. With a complete library of articles for both sellers and buyers, it's a one stop shop to understanding what a stranded home seller can do in today's market.. Ford's top article generates over 5400 views. to your Favourites.