New Agent Highlight!

Meet Tracy Wilkins!

A Richmond native, Tracy initially became interested in Real Estate through investments.  After going through several investment projects as well as selling her personal home, she became knowledgeable of the process from a buyer and seller point of view.  Having an extensive career in customer service, she likes to experience the personal side of buying and selling a home, not just signing the dotted line.  Hard work and making smart financial decisions were values Tracy was taught from her parents and qualities she would like to pass on to her three kids, who are now young adults.  In her spare time, she likes to spend time with them doing activities like bowling, shooting pool and miniature golfing.

Can You Buy With Cash & THEN Get A Mortgage?

This is a great competitive edge that many investors use.  With inventory low, especially this time of year, having the cash advantage can mean you get the house you want. Sellers don't necessarily have to take the better offer if the buyer hasn't been approved for a loan yet, they may be looking for easy and fast.  And that's why cash is king.

Can You Get A House With Cash And Then Get A Mortgage

In competitive markets, cash is king. But coming up with the full purchase price of a home for sale in Baltimore, MD, or anywhere else isn’t easy to do. That’s why some buyers are turning to a unique solution to better compete when multiple offers are on the table: paying with cash now, then getting a mortgage later. Sound complicated? It is. Here’s how it works and what you should consider.

1. Why cash is still king in competitive real estate markets

Here’s the strategy: Buyers liquidate their assets, amass enough cash to purchase the home outright, and then put in an offer as an all-cash buyer. For sellers, all-cash offers are more attractive than ones from buyers who need to finance the purchase. Cash deals mean fewer contingencies — mainly, the sale of the home is contingent upon the buyer getting the mortgage, and there’s no guarantee that will happen. For instance, the sale could fall through if something goes wrong during the underwriting process. The sale is also contingent upon a home inspection and appraisal if the buyer finances the purchase, and again, a number of issues could come up that may make your lender (and you) pause. Plus, all-cash deals tend to close more quickly and with fewer overall complications than a sale that depends on financing.

2. A new buying strategy: cash first, mortgage later

Buyers are using the cash first, mortgage later strategy to circumvent these contingencies. They still finance their home with a mortgage, but they delay that process until after the sale is final. “With prior proper planning, a buyer could conceivably offer a 24-hour closing,” says Dennis Crowley, principal of Vitruvius Capital Consultants. Before opening his own firm, Crowley served as a private banker and helped buyers use this strategy to purchase homes.

There are downsides, however, to this tactic. “You’re using marketable securities as collateral,” Crowley warns. “This means that the buyer and lender have agreed that the collateral is worth a certain amount, and that amount can change without notice.”

3. What to consider before liquidating your assets

This buying strategy isn’t right for everyone. “Use the same wisdom you’d apply to any other purchase,” Crowley advises. “Make decisions with facts and not emotions and understand your options thoroughly.” Instead of liquidating your assets and putting a lot of pressure on yourself to purchase a home, consider a new timeline for your homeownership goal — perhaps set a goal to buy in five years instead. By then, you’ll have saved up more cash and may not need to liquidate existing investments. Second, the real estate market could change during that time — making these extreme measures unnecessary.

4. How to buy with cash first and get your mortgage later

Some buyers take money out of their retirement savings. Others liquidate other investment accounts and various assets like other property or use cash savings. Buyers also turn to (generous) relatives to help gather the amount needed to cover the purchase price. Once you have enough cash, you purchase the home (woohoo!). Then you get a mortgage, using that loan amount to refill the accounts you depleted and pay back anyone who helped you gather the cash you needed to buy.

Of course, you need to be careful when dipping into retirement savings, like 401(k) and IRA accounts — it’s not always a wise move. You’ll be penalized for withdrawing funds before retirement age, so include those fees in the total cost of your mortgage if you want to fully pay back those accounts. And an important note: Crowley points out that trying to use your existing assets this way is not for people who want to borrow money they don’t have. The cash first, mortgage later option is intended for people who want to employ capital that they already have in the most efficient way, he says.

5. More factors to consider

Remember to evaluate your situation (and your assets) to determine whether buying this way is even an option. “A buyer with roughly 150% of their proposed purchase price in marketable securities brings these options into play,” Crowley says. “Failing that, a buyer who has at least 200% of a required down payment might consider these.”

An understanding of marketable securities is a prerequisite for this buying strategy. Crowley recommends finding the right lender too. Most mass-market lenders won’t be able to support the level of complexity required to help with the process from start to finish. “Most major brokerage firms offer these options. Some smaller firms do as well,” Crowley says. “Even some independent financial planners have access to such channels.”

The bottom line? Liquidating your assets to purchase a home with cash and delaying financing by taking out a mortgage after you buy is an interesting strategy — but not one that’s right for everyone. It can help keep your offer competitive when you’re trying to purchase a home, but you shouldn’t just liquidate all your assets to become a cash buyer. Use money you already have as leverage, and don’t try this strategy simply because you don’t currently have enough cash to put money down on a home or to buy a home outright.

This article originally appeared on Forbes.com

How Basement Renovations Can Pay Off

Straight from Realtor.com comes great tips on what to do with a basement that has potential! It not only adds SO much value to your home, it creates another living space to enjoy for years to come!

8 Basement Renovations That Really Pay Off!
By: Margaret Heidenry

Sure, walking down rickety stairs and gazing into a dark, dank cellar might put you off the idea of dropping wads of cash to hang out there. For motivation to clear away the cobwebs, consider the fact that updating a basement could net you a 72.8% return on investment, according to Remodeling magazine—that’s higher than a rehabbed kitchen or bathroom!

But just how do you go about transforming your basement from a site that could get scouted for a horror movie to a comfortable rec room, stylish spare bedroom, or swanky home theater? Simply follow these renovation tips and expert advice for some ideas.

Assess its potential

First, spend some quality time in your basement and make sure it has potential. Signs you should maybe save your renovation dollars are “low ceilings, few windows, and a closed-in or poor layout,” according to Bruce Ailion of Re/Max Town and Country Real Estate Brokers in Atlanta. You just won’t be able to do much with that. But basements with a comfortably high ceiling and at least a couple of windows are fair game.

Further proof: One of Ailion’s clients, a flipper, bought newer homes with decent basements for $215,000. After spending $75,000 in basement upgrades, she would sell them for more than $350,000—“earning a gross profit of $60,000 on a fairly consistent basis.”

Get floored

Most basement floors can be best described as dystopian utilitarian—that is, cold, gray concrete. How to warm it up without spending a fortune? If you have a dry basement with no moisture issues, “wall-to-wall carpeting is among the least expensive and easiest-to-install options,” says Dina Gibbons, a home and garden design expert at RubberMulch. “A midrange nylon Berber carpet is a great pick.”

Installation for a 250-square-foot space will run about $1,000. If your basement is prone to flooding, check out modular carpeting tiles that are easy to replace in case of water staining or damage.

Banish mold

You know that moldy, musty smell that screams “basement”? That comes from mold. Whenever you have a room below ground level, you risk having water seep in. And just behind a layer of Sheetrock wall is the perfect place for these funky spores to flourish beyond your reach. Yet there are alternatives.

When renovating her 200-square-foot basement, New Jersey homeowner Ellen Cagnassola installed walls made from fiberglass with a Teflon-coated fabric by Owens Corning.

“It looks like real linen, so beautiful,” says Cagnassola. And since these walls are designed to breathe, they don’t trap water and create breeding grounds for mold. Meanwhile Cagnassola’s crown and baseboard moldings look like cherry-red wood, but they are made of PVC. And they pop off, which was handy as she recently tiled the floor. Best of all, the entire remodel cost only $15,000.

Let there be light

Get rid of that dark, shiver-inducing feeling some cellars have by adding natural light with an egress window. These large windows that allow for an easy exit in case of a fire will run about $500 for a DIYer to $3,000 for a professional installation. Other inexpensive options to transform a basement include adding “reclaimed wood to the walls and hanging tin or faux beams to the ceiling,” Gibbons says.

Pick the right paint

Basements are not exactly known for great ventilation (though you might want to upgrade that), and fumes from fresh paint can put a real damper on movie night. A great toxin-free option is milk paint such as RMPC, which emits zero odor during application or drying. Plus, milk paint is porous, so moisture in the walls won’t make it flake off.

Upflush!

Throwing up a few walls is one thing, grabbing a sledgehammer to install a bathroom is another. But while you’re in the basement, do you want to trek upstairs when nature calls? We didn’t think so. Enter upflush toilets, which can be installed on top of any finished surface, according to Ross Evans, national sales manager for Saniflo. Since water flows through the back of the toilet instead of through pipes under concrete, there’s less renovation mess and lower overall installation costs.

Go for multitasking

Sure, you could make the basement a permanent museum for your obsolete furniture and electronics, or you could go for a flexible, multiple-use area you will actually use.

“The most impactful basement renovation is one that provides an area for entertaining and family activities,” says Gibbons. Build walls to form a guest bedroom, kids’ playroom, or home office, Gibbons says—all are in high demand with home buyers. Just maintain the larger portion of the basement for an open living space.

Rent it out to start making money now!

Once you’ve finished your basement, consider renting it out to earn an immediate ROI, says Jordan Knowles of The New LeDroit Park Building Co.

“If you live in a city like Washington, DC, rental space is in demand. Homeowners are getting rental income anywhere from $1,500 to $2,000 per month to pay [their] mortgage. Others have decided to invest in the renovation and use services like Airbnb for short-term rentals, keeping the space free for family visits.”

For the full article, click here.

Sales Tax Holiday on Big Ticket Appliances

  One of my passions as a Real Estate Agent is investment properties.  I love connecting the right people to get a project done quickly and efficiently to create a beautiful result; a home that someone would love to own.  If you’re working on an investment property right now, this weekend is the time to shop for all of your big ticket Energy Star and WaterSense appliances!  Whether your home’s appliances are outdated and need an upgrade, or you need to furnish your flip, this weekend’s tax holiday is the time to buy!

Qualified Energy Star items include:

• dishwashers
• clothes washers
• air conditioners
• ceiling fans
• lightbulbs
• dehumidifiers
• refrigerators

Qualified WaterSense items include:

• bathroom sink faucets
• faucet accessories such as aerators
• shower heads
• toilets and urinals
• landscape irrigation controllers

Items that are exempt during the combined sales tax holiday include items that are affixed with Energy Star or WaterSense label and the cost of the item is $2,500 or less and the item is purchased for noncommercial or personal use.

For more information on all the Sales Tax Holiday items search here.