Functional obsolescence reduces the desirability of your home to buyers and makes it more difficult to sell. Here are some examples of functional obsolescence: 1) No bathrooms on first floor 2) Bedrooms with no closest 3) Knob-and-tube wiring or fuses instead of a circuit breaker box 4) One outlet per room
continue readingPay for property renovation projects by the job not by the hour. When you pay by the hour, it normally takes more time and costs you more money.
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 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 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 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 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 readingHeadlines like RED HOT HOUSING MARKETS are compelling and attention-grabbing, but it’s important not to lose sight of the fact that banks are still saddled with tons of foreclosures and pre-foreclosure properties. Because there are still so many homeowners upside down on the mortgages or behind on their mortgage payments, banks are deliberately manipulating housing inventories giving the impression that a housing recovery is happening. Ultimately, income drives everything and a long sustained housing recovery is not going to happen until the economy and people’s incomes start rising again. Do your homework and get intimately familiar with your local real estate market because every residential real estate market is different—each local market has its own property characteristics, its own regulations […]
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 readingBy Gerald Lucas What impact will a short sale have on your credit score? The correct answer is that it depends. Your credit score is calculated based on a complex formula that tries to figure out the likelihood that you will not pay back your debts. The term ‘short sale’ is unlikely to appear on your credit report. The number of points you’ll lose on your credit score after a short sale will be based on how your mortgage loan was closed and on how that closed account was reported to credit reporting agencies. Normally, a short sale is reported as ‘settled debt’.
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