Real Estate Insights: Eviction history is more important than credit score or income in determining whether a prospective tenant will pay their rent on time
continue readingReal Estate Tip: Most of the best real estate deals will involve properties that are in need of repair. In order to capitalize on these rehab deals, you or someone you work with will need to know how much time and money are required to renovate these properties. -Gerald
continue readingAlthough mortgage rates remain at historic lows, lending standards for home buyers remain stringent. New regulations intended to prevent risky mortgages from entering the market will keep underwriting standards strict. With average FICO credit scores for conventional loans well above 700, establishing and maintaining good personal credit has never been more vital to obtaining a mortgage loan. -Gerald Click here for the original article!
continue readingThe Mortgage Forgiveness and Debt Relief Act has provided tax relief to homeowners upside down on their mortgage facing foreclosure who would otherwise have owed taxes on forgiven mortgage debt. The original Mortgage Forgiveness and Debt Relief Act was introduced in Congress in 2007 and after first expiring in 2009 has been extended by Congress each year since 2009. The Act expires again this month (January 2014). With millions of homeowners around the country still upside down on their mortgage and facing foreclosure, hopefully Congress will extend the Act again for at least another year. -Gerald Click here for the original article!
continue readingStaging helps make a home easier to sell because people buy on emotion and staging makes it easier for potential buyers to picture themselves in a home. When staging, little things matter (odors, appearance and lighting all count). Also, less is often more—you don’t have to go overboard furnishing every inch of a home, just the basics, neat and presentable—it’s a good idea to leave enough empty space for your buyers to imagine their belongings in the house. -Gerald Click here for the original article!
continue readingIt’s a good idea to have at least one exit strategy when you buy any asset especially one as expensive as a house. Nobody can predict the future, but you can and should think about how you would deal with a job transfer, job loss, an extra mouth to feed or some other unexpected life event. If you had to sell, do you have enough money to pay closing costs and transfer fees? Would you be able to rent your property if you needed to? If so, what is the current market rent and would the monthly rent cover your mortgage payment and other housing-related expenses? There are no guarantees in life, but in real estate as with most financial […]
continue readingYour mortgage must be secured and recorded to be tax deductible. If you borrow from a big financial institution to buy a home like most of us do, you shouldn’t have to worry about your lender making sure their collateral is safe and your interest payments are deductible. Your lender should send you a statement every year indicating the amount of mortgage interest you paid—it’s a good idea to check that statement to make sure it matches the scheduled interest to be paid for that year on your mortgage loan’s amortization schedule. There are some politicians who have recently suggested we reconsider the powerful mortgage interest deduction that property owners benefit from. Eliminating or restricting the mortgage interest deduction would […]
continue readingIn addition to bank account cash deposits, you must be careful about all your credit card purchase activity for the few months before you close on your mortgage. A big purchase like a car for example, may affect your debt-to-income ratio which could derail a mortgage approval. As a precaution and part of your mortgage planning, I suggest you ask your mortgage broker or banker exactly what activities may spoil your mortgage confirmation; avoid all those activities until your mortgage is approved AND funded! -Gerald Click here for the original article!
continue readingThe ultimate cost of owning a house unfortunately goes well beyond the initial money required to purchase a home. There are regular maintenance, upkeep and replacement costs you’ll have to pay for over time, particularly if you do not purchase a new home. Home ownership is a worthy goal and in order to maintain your home, make certain you put aside enough reserves to pay for unexpected repairs and replacement of major items like a roof. In order to do this, it’s a good idea not to spend your last dime when you purchase your property–leave some money left over for unanticipated costs which almost always occur. -Gerald Click here for the original article!
continue readingThe new micro-housing trend seen in cities across America underscores broader demographic changes that will affect the US economy and urban real estate markets for many years to come. More than 2/3rds of all households have no children and housing demand in general is becoming more concentrated in areas where there are jobs. In addition, people are living longer and seniors normally require less living space after they retire. Smaller households require less living space which is why this micro-housing trend will continue. -Gerald Click here for the original article!
continue readingThis letter sent by 13 Senators, one of whom is my Senator from New Jersey is a welcome sign that at least some of our representatives in Congress are paying attention to something other than raising money to get re-elected. While encouraging private growth in the mortgage market is an admirable goal, as the saying goes: the road to hell is paved with good intentions. Lowering the Freddie Mac and Fannie Mae loan limits may turn out to be a dangerous experiment that we can ill afford right now in the middle of an encouraging yet fragile real estate recovery. -Gerald Click here for the original article!
continue readingYour credit score has an enormous influence on your ability to borrow money to buy a home or even to qualify to rent an apartment. Your credit score also has a profound impact on many other aspects of your life like the qualifying to get a job, qualifying to get student loans, car loans or credit cards as well as the amount of interest you’ll ultimately pay on those loans. There’s only one true credit score that is used by lenders to decide whether you qualify for a home loan, a car loan or some other kind of credit–that one true credit score is your FICO score; FICO stands for Fair Isaac Corporation. Proof of the fact that your FICO […]
continue readingDefaulting on your mortgage payments is rarely what you have in mind when you buy a property—but if you don’t have the money, then you can’t pay. As the saying goes, you can’t get blood from a turnip. The good news for people who did default on their mortgage during the financial crisis is that there are lots of other people who found themselves in this identical position. With millions of people in the same unfortunate situation, it’s in the best interest of both banks and the federal government to find a responsible way to lend to previously foreclosed-upon homeowners who have since recovered financially. It will most likely take more time and require more paperwork to get approved for […]
continue readingYou should always have a home inspection contingency in a real estate contract you sign to protect yourself from unforeseen problems with a property like termites, a leaky underground oil tank or major structural defects. In a hot real estate market where there is lots of competition between buyers, people often get frustrated are often tempted to cut corners just to win a bid and make a home purchase–this is a huge mistake that may come back to haunt you later. You have the most control in a transaction when you buy, if you waive the inspection contingency in real estate contract you sign, you may end up stuck purchasing a property with major problems that make the property uninhabitable […]
continue readingGerald Lucas was recently seen on NBC, CBS, ABC and FOX network affiliates around the country as an expert guest on the TV show, America’s PremierExperts® Jersey City, NJ – October 11, 2013 – Gerald Lucas, Managing Director of Performance Property, LLC., was recently featured on the hit TV show “America’s PremierExperts®” which aired on NBC, CBS, ABC and FOX network affiliates around the country. “America’s PremierExperts®” host Nick Nanton interviews the best business, marketing and financial minds from around the world. In the interview, Gerald described how he accidentally began his career as a real estate investor and how he has shared his knowledge and many years of experience with hundreds of his students throughout the United States and […]
continue readingReal estate is always a good investment if you know what you are doing regardless of whether the writer of this article says it’s the next hottest investment or not. Also, you should not use averages and macro trends like # of housing starts or # of new permits to make an individual real estate buying decision. There are people who make money and people who lose money in EVERY real estate market–you just want to make sure you are one of the former. The writer does give two good pieces of advice: 1) “Investors should should filter opportunities based on the project partner and project’s ability to generate yield & 2) investors should come in with an understanding that […]
continue readingBy the reducing the waiting period for a government-backed mortgage, this new FHA rule change represents a huge benefit to homeowners who’ve experienced financial hardship and found themselves unable to meet their mortgage obligations. The welcomed change incentivizes homeowners in mortgage default to resolve their current financial hardship quickly rather than languishing in pre-foreclosure limbo. The rule change should help homeowners in crisis to get back on the road to financial solvency and homeownership more quickly which is a boon for the real estate industry, the banking industry as well as the overall US economy. -Gerald Click Here to Read The Original Article!
continue readingProper due diligence is critical to making wise real estate buying decisions. While nobody can predict the future, you should always take the time to do your homework before you sign a purchase contract to buy real estate. Unexpected surprises that can affect your property are not limited to homeowner association documentation. Towns, gated communities and condominium associations may also have rules or ordinances that can have an enormous impact on your real estate investment. Here are 5 additional questions you should answer before you buy a property: 1. Are there any deed restrictions on the property you want to purchase? (Control) 2. What is crime rate in your property’s neighborhood? Are there any registered sex offenders in the neighborhood? […]
continue readingYou can listen to the Podcast here!
continue readingGerald Lucas is currently featured in the July/August Edition of Fast Company as one of “America’s Top Business Leaders.” Jersey City, NJ – July 3rd, 2013 – Gerald Lucas, Managing Director of Performance Property, LLC., can be seen on newsstands across the United States in the current edition of Fast Company magazine. In a full-page feature, Gerald Lucas is being recognized by America’s PremierExperts® as one of “America’s Top Business Leaders.” The July/August edition of Fast Company hit store shelves on June 25, 2013. Here’s what the Fast Company feature had to say about Gerald Lucas: Gerald Lucas is a real estate investor, author, coach and professional speaker. Gerald has developed numerous condominium complexes, owned and managed apartment buildings and […]
continue readingIt’s very easy to get discouraged and want to give up when you fall behind on your mortgage payments. I’ve heard many homeowners say, “I’ve already ruined my credit, it can’t get any worse.” Unfortunately, it can get worse, because the nightmare does not end when the bank forecloses on your property.
continue reading