With just a few days before Christmas, I want to give you some contrarian advice that may give you a leg up on your real estate competition. Most people slow down right about now, which is fine, it’s ok and essential to recharge your battery–however, when you choose to shut down your real estate business is important. You see, if all the other real estate investors are slowing down now, doing what everyone else is doing is not necessarily a good recipe for success. On a practical level, if you’re still doing business when everyone else slows down, you have less competition to contend with and it’s easier to make an impact. For example, negotiators at banks on both bank […]
continue reading Q: Gerald, we’re under contract to buy a short sale property. How much time do we have to close before the bank forecloses on the property? Bonnie, Totowa, NJ A: Great question Bonnie, the simple answer to your question is that it depends on how far along in the foreclosure process the borrower who owns the property you are buying is. In many places like North Jersey where you live, you can check the sheriff sale list online to see if there is a sheriff sale date scheduled—the foreclosure process is different in different states and areas but where you live, there normally has to be a sheriff sale scheduled before a property is actually foreclosed on. If there is […]
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 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 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 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 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 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 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 readingQ: Hi Gerald, I found a great deal on a property that I want to buy. I’m satisfied that I did adequate due diligence: I checked sold price comparables and the property is fully rented in an area where I know I can find other tenants. The problem is that my attorney is trying to convince me not to buy it. What do you think I should do? Kevin, Salt Lake City, Utah Gerald: Hi Kevin, attorneys do not exist to give financial advice although they often do. An attorney’s job is to interpret the law. Unfortunately, attorneys thrive on power—this power is maximized by creating fear in their clients. The more frightened they make their client, the more their […]
continue readingYou can listen to the Podcast here!
continue readingQ: Hi Gerald, I need to find a good contractor to do some property renovations. The last time I hired a contractor, he took forever to do the work and never finished even though we paid him in full. I’d do the work myself, but with our new baby and the increased hours I have to work on my new job, I just don’t have the time. What should I do? Steve, Hartford, Connecticut. Gerald: Hi Steve, first of all, don’t beat yourself up about what happened with the last contractor you hired—it’s water under the bridge and is something you can learn from. We all make mistakes and unfortunately even the most seasoned real estate investors have had bad […]
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 readingQ: I’m a new landlord. I’m preparing to rent out an apartment in my new property. A friend of mine told me to avoid section 8 tenants. Can I refuse to rent to a tenant if he or she gets section 8 assistance? John, New Brunswick, New Jersey Gerald: Hi John. In New Jersey you cannot discriminate based on a person’s source of income, thus refusing to rent your apartment to a tenant because they receive section 8 assistance would certainly violate that rule. Landlord tenant laws vary a great deal from place to place, so always consult the rules in the area where your property is located. As a landlord, it’s best to have a thorough written rental policy […]
continue readingQualifying to short sale your home generally boils down to 3 main challenges: 1) Getting your lender’s attention and giving your lender a reason to discount your mortgage loan 2) Demonstrating that you have a legitimate financial hardship preventing you from paying your mortgage 3) Getting your lender to accept that the price your buyer is paying for your property is close enough to your bank’s independent valuation of the property. Banks earn profits by collecting interest payments on money they lend. However, when those payments stop, instead of making money, the bank is now losing money and as a result has an incentive to limit those losses. Banks always take notice when they don’t get their money and borrowers […]
continue readingIf you’re paying cash, you can buy a home the day after you short sell your property. You can also qualify for a home loan again soon after a short sale in some cases in two years or less. Short sellers normally have to wait for a period of time after closing a short sale to qualify for a new mortgage loan, but the time frame and requirements vary depending on the type of loan and the down payment they are able and willing to pay. For a conventional loan, the higher the down payment a buyer is willing to pay after a short sale, the shorter the amount of time that is required to wait to qualify for another […]
continue readingAs part of the the fiscal cliff bill passed on Jan. 1, 2013, Congress has extended the Mortgage Forgiveness Debt Relief Act.
The Mortgage Forgiveness Debt Relief Act was created in 2007 to provide homeowners a tax exemption when they get mortgage debt forgiven on their primary residence.
Are you eligible to apply for a short sale even if you’ve already tried to modify your mortgage loan? Your effort as a borrower to short sell your property should never appear to be a strategic default to your lender. A strategic default is a decision by a borrower to stop making payments on a debt despite having the financial ability to make the payments. Banks don’t like to approve short sale applications when it looks like a borrower can pay but simply chooses not to pay.
continue reading