How To Invest In Real Estate In Your 20s

How To Invest In Real Estate In Your 20s

You’re a twenty something and are pondering the wisdom in investing in real estate. Friends tell you it’s nuts. Your parents probably think it’s a good idea. Really, though, can a twenty something invest in real estate? Is it even possible?

It is possible!

Of course it is. Let’s look at why. First, while you may not have much of a credit record, it’s less likely to be bad. If you’ve kept up on student loans, paid your credit cards on time or off and paid your other bills on time, you’re doing that adulting thing well. Well enough that you would be considered a decent risk for a mortgage.

The main problem you may come up against is lack of a down payment, or one that is big enough. Saving when you first get out on your own can be hard to do, especially when you are renting. You did put a security deposit on your rental. While counting on getting all of that back isn’t a great idea, it is something that can help. Even if you can put aside a small percentage of each paycheck it will build quickly. What can you cut out? $6 lattes? Eating out as frequently? How about getting out of that gym membership you never use? You can find ways to cut back and save money. In the long run it will be a bigger benefit.

Creative financing

Again, though, there are ways to work around it. If you are getting married use your wedding money towards the down payment. Ask your parents to chip in or partner with you. Work with your bank or Realtor to find creative ways to finance the purchase.

Use roommates

Once you have the home, a great way to make it work is to live in part of the home and rent out the other bedrooms. Your roommates can be the source of your mortgage payments. If you live with your parents rent all of the property to pay the mortgage and other expenses.

Remember that where there is a will, there is a way. Investing in real estate in your twenties is a great idea and a way to build wealth for yourself and your future.

Kitchen Remodeling Projects That Make A Difference When Selling

Time to sell and your Realtor is telling you that your Kitchen Remodeling Projects That Make A Difference When Sellingkitchen needs some updating. Unfortunately, you don’t have $15,000 to $30,00 to do that. So what changes can you make that cost a little, but make a big difference in how your kitchen looks when selling.

Spruce up the cabinetry

Replacing your cabinets can cost thousands of dollars. Painting them and changing out the knobs and pulls is a lot less expensive. Depending on the size of your kitchen it could cost less than $100 or anywhere up to about $500. You’ll need sandpaper, a semi-gloss paint and new hardware. Even just swapping out the hardware can make dated cabinets look new or more modern or custom.

Backsplash

Does the backsplash behind your stove and sink look tired? Older tile backsplashes can make a kitchen look very dated. Replace it, or add one. The cost is a bit higher than repainting, but you can choose tile, glass, or even metal. Keep in mind that white or neutral tones will make the kitchen feel bigger and brighter.

Floor

Floors can make or break a kitchen, but completely replacing them is another huge expense. Consider painting them. Depending on the size of your kitchen painting or restaining floors typically costs between $400 and $650. Sometimes just a quick color change can make a huge difference in the feel of your kitchen. Use an enamel paint for durability.

Lighting always makes a difference

Change out the light fixtures. Inexpensive ones can be very low cost and the average cost is probably between $75 to $250. Try adding under cabinet lighting to give the kitchen a higher-end look and more light or if the fixtures are classic or newer, swap out bulbs for an instant update.

New counters are always a plus

Think butcher block or concrete for a lower cost but more modern feel. Try using reclaimed materials if you have a smaller space and want a higher end feel. You may be able to find smaller pieces of granite or marble that will fit, and being reclaimed will cost less. While working on the counters also consider a new sink. A good stainless steel sink will probably cost you about $300. If your sink is in great shape, try changing out the faucets. Also very inexpensive, but will make a big difference in look.

How To Find Real Estate Investment Properties In A Hot Market

Want to get into real estate investing but are afraid the market is too hot to get you a reasonably priced property? Well, there are some things you can do in order to find good, solid properties that aren’t over priced.

Have a Realtor help

Your best bet is to start by having a Realtor help you find good prospective properties. Be sure to ask if they are experienced in investment properties. If they do, they will understand your needs and they will be invaluable helping achieve your objectives.

Not only are they a good resource, but once you establish a good relationship with them they will be more likely to seek you out when a great property comes their way.

In fact, I work with a number of investors who have different goals and objectives. I let them know as soon as I find something that will fit their needs!

One resource can be foreclosure lists

It can be a bit hit or miss in a hot market, but foreclosures happen all over for varied reasons. Checklists for your area, which may require a subscription, can be useful and be sure to look for properties that haven’t been listed for long.

Look for properties in nicer neighborhoods. Once you find one or some, have your Realtor help you see the property. The caveat here is that they may not be kept up or may have been vandalized by a disgruntled owner or scavenge artists looking for anything of worth in a vacant home.

Finding a property in a hot market isn’t impossible. With some work you can start a profitable venture.

If you are thinking about working with a Realtor, give Tena D a call and we can get to know each other a little bit! 303-452-5853 

Are You Selling A “Special” House… How To Find Comps

You’re getting ready to sell your home but aren’t so sure how to price it. Not because you can’t find homes similar to yours to compare, but because your home has the most amazing mountain views or sits on an open space or has a really unique garage that will make a huge difference to your buyer.

How do you quantify that? How do you find comps for your special home?

So what makes your home special?

Are You Selling A “Special” House… How To Find CompsThose views, or maybe proximity to protected lands or even that a famous person lived there.

The list of special could be endless, but how do you find out how much it adds to your home’s value?

Typically finding comparable real estate sales involves finding homes that have similar square footage, bedrooms, baths and so on. Of course things like condition of the home versus condition of the comps is also taken into consideration.

Some things make it hard to find comps. Distance from one home to another in rural areas, special things like views and so on.

So how do you find a value for that?

You can stop and think about what it was worth to you when you purchased the home. Did it make you want to offer more for it than another similar home? Still not sure? Contact a Realtor in your area. A Realtor is more than aware of what makes your home special. They will also have an idea of what it adds to the value of your home.

Better yet, just list it without worrying about the special thing and then see what happens when homebuyers come calling. Your special thing will become what makes homebuyers offer more for your home than any another.

If you are in the Denver area and want help with pricing your “special” home, give Tena D a call today! (303) 452-5853

In This Day And Age Are Real Estate Agents Really Necessary?

With all of the online tools, websites and advice for home sellers and buyers, is it really necessary to hire a Realtor?

The short answer to that question is a resounding yes. The internet can only tell you so much and it certainly can’t show your home, take you to homes to see and In This Day And Age Are Real Estate Agents Really Necessary?facilitate settlement when you sell or buy your home.

As it’s been said, when the going gets tough, hire an expert… or something like that. But really, why would you undertake such a huge financial and legal undertaking without being educated in the ins and outs of such things?

A Realtor knows the local market

They know how to negotiate at all phases of the process. They know how to value a home beyond number of beds, baths and square footage. They understand most types of mortgages and home financing, or know someone who is reliable that can help you should you need that type of assistance.

Now let’s talk time

Do you have the time, over and above your day job, family responsibilities and so on, to stage your home, list it with MLS and other websites like Zillow or Realtor.com, take all the phone calls, schedule showings, read/understand/respond to offers, schedule inspections, schedule settlement and all the paperwork a settlement entails, do the walk-through and finally hand over the keys?

Do you have the time to search the internet for homes to see, call the listing agents, schedule showings, write up an offer, read over the inspection report, renegotiate repairs, review the title report and all of the settlement papers?

Experience Matters

One last thing to think about! In your lifetime you may buy and sell 5-10 houses (maybe a few less, maybe a few more). For some of us, that top end is a really slow YEAR!

Realtors spend all of our time negotiating, researching, talking on the phone and getting educated about real estate. The business of buying and selling homes is our life and when you hire a Realtor, you get some of that dedication and determination just for your home!