contract for deed

Real Estate Terminology Explained

26 Real Estate Terms Defined for New Buyers

 1000 500 Sam Radbil
By:
0

Buying real estate can be complicated, and some of the real estate terminology can be confusing. Be sure to refer to this comprehensive guide when you need some clarification.

Real Estate Terminology

1) Adjustable rate mortgage

As opposed to a fixed rate instrument, your actual interest rate can move up and down at pre-determined intervals according to whatever index it is associated with.

2) Amortization schedule

A chart that shows exactly how much of your monthly payment is applied to principal, and how much is applied to interest.

3) Appraisal

An independent accounting of what a property is worth. Lenders will require to this to make sure the home they are financing is worth the loan amount.

4) Assessed value

What taxing authorities say your home is worth. This can be changed annually.

5) Buyer’s Agent

A real estate professional that represents the prospective buyer and is therefore entitled to part of the sale commission.

6) Closing

The meeting where the deal is finalized. Money is usually transferred that day or the next day.

7) Closing costs

These are the loan processing and various other costs that can equal two to five percent of the home’s purchase price.

8) Contingencies

Contract clauses that can allow either party to exit from a deal. An example is contract section that explains if the buyer cannot get financing within a certain period of time, the deal is off.

9) Equity

The difference between the market value of your home and any loans you have against it.

10) Escrow

An account that certain monies like down payments are placed into pending closing a deal. After the loan is closed, banks often require insurance and tax payments to be escrowed also.

11) Fixed-rate mortgage

A mortgage rate that can’t change no matter what happens to subsequent mortgage rates.

12) Home warranty

Usually purchases from a third party, these instruments help pay for problems after the sale has been consummated.

13) Inspection

Done by an independent person, this process checks the house for problems that may have to be addressed before the sale.

14) Interest

The price you pay for money expressed as a yearly percentage. This is an important piece of real estate terminology that you must understand.

15) Listing Agent

In a transaction, the seller’s agent.

16) Mortgage broker

A third party that finds appropriate lenders for buyers.

17) Offer

The legal document that spells out the buyer’s proposed terms of purchase.

18) Pre-approval

Buyers can go to the lender, present financial information, and get pre-approved for a loan. Pre-approval is not usually binding, however.

19) Principal

The amount of money that needs to be financed after your down-payment has been subtracted. This seems like a simple, easy to understand piece of real estate terminology, but make sure you fully understand this concept before searching for a home.

20) Private mortgage insurance

Insurance that the buyer pays for in monthly payments. It protects the lender against default.

21) Real estate agent

Someone with a real estate license who has passed certain exams and who works with a real estate broker. This should be a very familiar term to many; because whether you’re buying a home in Minnesota or renting an apartment in affordable Eugene, Oregon, it’s likely that you’ve worked with an agent. 

22) Real estate broker

Someone that has met certain requirements and who hires agents to work for him or her.

23) Realtor

A real estate agent that is a member of the National Association of Realtors (NAR). NAR has ethical and business standards that members must follow.

24) Refinancing

Restructuring a home loan to get a more reasonable rate or pull equity money out.

25) Title insurance

A policy that both sellers and buyers must purchase that protects that parties in a transaction against title deficiencies.

26) Contract for Deed

A unique process widely used in Minnesota that, when used correctly, can allow those that have been denied credit a real chance at home ownership.

As you can see, real estate terminology can be tricky, but by becoming familiar with this list, you’ll have a better understanding of what’s going on during your deal.

saving for a minnesota house

10 Tips to Start Saving for a House in Minnesota

 1000 500 Sam Radbil
By:
0

Unless you can get a VA no-down payment loan, you are going to work on saving money for a house for a first home deposit. Conventional mortgages usually require at least five percent down, and FHA loans will ask for three percent. If you are buying a second home or if you have compromised credit, you will have to come up with more cash. Let’s look at some ways to accumulate that elusive down payment when you are saving money for a house, including those awesome side gigs.

Saving for a house

Image via bankrate.com

Treat Money Wisely

You don’t necessarily have to go on the peanut butter only diet to save cash, but with some commodities like milk, the bottom of the shelf brand that the stores try to hide is probably the same product as the more expensive nationally branded milk. Try it, and if it tastes the same, buy the cheaper brand and you’ll save money every week.

Pay Yourself

According to SavingLoop, “it’s important to set up a bi-weekly direct deposit to a savings account—same as a deduction taken from your check. You won’t feel it, and you will accumulate dollars fast.”

Ditch the Corvette

Saving Money with Kia

*Save money with a Kia lease

Get a sensible car that is reliable. Think KIA Soul, and if you can drive a manual transmission, you can lease one of these for under $200 per month.

Become a Landlord

Rent your garage or an extra bedroom and pick up cash monthly. This strategy really helps saving for a house. Let’s say you have an apartment in an area like Uptown, well, maybe you have a money-making opportunity on your hands. Rent it out!

Sell It to Start Saving for a House

Old cards, vintage guitars and collectibles that you never will use can sometimes fetch great prices. If you are not using it, turn it into cash.

Don’t Be a Walmart Snob

Stuff is cheaper there and you can really save some money at Costco. It really is. That $4.50 two-ounce tube of cortisone cream you just bought at CVS is probably sold at Walmart for two bucks. Check out dollar stores as good retail alternatives also, and saving for a house will be less of a hassle.

Saving for a house with Costco

Get a Side-Hustle to Start Saving for a House

This means a second income stream. Cut lawns, wash cars, walk dogs, babysit, work catering gigs; just find out what else you are good at beside your regular job and work a few extra hours.

Locate Your Rich Uncle

Your family may include someone that will loan you down payment cash. Don’t be afraid to ask.

Buy a Smaller House

If your dream home is out of reach, go intermediate and buy a smaller or starter home. Treat it nicely and in a few years, you can sell it and move on up.

Find a Duplex

Duplex

If you have only saved a minimum down payment, find a duplex where you can rent the other side. While this falls into the starter home category, think of the advantages that having someone else paying half of your mortgage will afford you.

All in all, there are a ton of ways to save money; we’re not saying one is better than the other. A lot of people use really cool apps like Digit, but there are a ton of ways you can do it, too.

As you know we, at C4D really hope you can get traditional financing. But if you can’t, be sure to let us know. Yes, we also require down payments, but our innovative use of MN Contract for Deed has allowed us to help many that had previously thought home ownership was impossible. Be sure to contact us!

Minnesota Homes For Sale

Minnesota Homes For Sale: September Updates

 1000 500 Sam Radbil
By:
0

It’s hard enough to ascertain exactly where a certain real estate market is headed, and with the wide variety of sources available, it’s equally difficult to distill those in order to make informed decisions. We’ll try and help you understand the current Minnesota real estate market and Minnesota homes for sale.

Minnesota Interest Rates

Minnesota Homes for SaleIt’s obvious that the Fed’s policy of keeping interest rates low has revived the housing market. Two years ago, you could still get a rate just at or even below four percent if you had excellent credit. Look at this chart to see the effect of a one percent mortgage rate difference:

You can see that a one percent rate increase on a $200,000 home loan costs almost $100 per month. Do the math any figure the costs for more expensive homes, and you will easily view the worrisome effect that higher interest rates cause.

Interest Rate Prediction

Home Interest Minnesota Real Estate

Our friends at Kiplinger tell us:

“The Federal Reserve is committed to raising short-term rates this year and next because it’s concerned about the tightening labor market. The Fed very much wants to stay ahead of any inflation that rising wages may generate and will lift short-term rates by a quarter of a percentage point twice more this year after doing so in June. That would put the federal funds’ rate at 2.5% heading into 2019, when another three increases are expected.”

These increases will trickle down to mortgage rates, and those looking for Minnesota homes for sale will see increases beyond these current rates:

Minnesota Mortgage Rates as of September 6, 2018
TERM RATE CHANGE LAST WEEK
30-year fixed mortgage rate 4.43% 0.02 4.41%
15-year fixed mortgage rate 3.90% 0.01 3.89%
5/1 ARM mortgage rate 4.16% 0.01 4.17%
30-year fixed jumbo mortgage rate 4.53% 0.05 4.48%
30-year fixed refinance rate 4.43% 0.03 4.40%

When the mortgage interest rate reaches five percent, this can cause Minnesota home buyers to take a step back and maybe consider staying where they are or renting.

In addition, a recent Minnesota Star Tribune article said that any price relief will have to wait until 2020:

“Relief is on its way for home buyers in the Twin Cities and beyond who are frustrated by a lack of house listings and lightning-fast sales, according to a survey of housing experts. But they will have to wait until at least 2020. That’s when experts see key indicators in the housing market tilting toward buyers. ‘Conditions are starting to show signs of easing up, but the effects of years of limited construction still linger,’ said Zillow senior economist Aaron Terrazas, cautioning that any shift will be modest. ‘Inventory is still falling on an annual basis, and home values are growing well above their historic pace.’”

Minnesota Homes for Sale: The Alternatives

So, if you are looking for Minnesota homes for sale, you’ll find a torrid market where the median home price may soon reach $300,000. Many in your position may decide to wait out this era of rapid increases and, as we previously mentioned, think about staying put or renting. Our friends at Abodo tell us this about the Minnesota rental market:

A one-bedroom apartment in St. Paul now averages $1020, and a two bedroom is priced at $1256. Both of these median prices are little changed from last month. While the nationwide rental market has shown an uptick since July, it can still be cheaper in some locations to rent rather than buy–more about this in an upcoming post.

It Can Be a Challenge

Finding your home can be stressful and financing it can be even more challenging. At C4D, our goal is to see you become a homeowner with a good, solid traditional loan. Sometimes, however, this just doesn’t work, but through our expert use of MN contract for deed, we get people into homes and put them onto the path of rewarding home ownership. Turned down at the bank? Be sure to contact us because we have helped lots of persons with credit issues ranging from divorce and job loss to bankruptcy and foreclosure.

For Sale By Owner

5 Reasons To Avoid “For Sale by Owner”

 1000 500 Sam Radbil
By:
0

So, you think you should try out the seemingly simple and affordable for sale by owner home sale technique?

You may be a dedicated DIYer. You know how to change your own oil, do HVAC repairs (if you don’t, you can find guides to the best HVAC contractors online), you are a big seller on eBay, and you know how to handle the Craigslist crowd.

You always buy cars rather than lease them, and you sell them after a few years, usually at a profit. You don’t like middlemen, and you avoid sites that claim 10 plumbers will bid on your project as you know how to find qualified vendors. But now it’s time to sell your house, and you are ready to put up the For Sale by Owner sign. Before you do that, however, consider the following reasons you need a Realtor.

For Sale By Owner

For Sale By Owner: The Time It Takes

When you hire a Realtor, they do the work. What work? Assessing your property’s condition and taking quality photos are two important early tasks.

Quality photos don’t mean hurried iPhone pics either. Ever notice how many shots of for sale properties are dominated by deep blue skies and warm orange glows? Do you know how to do that? How long would it take you to get 40 excellent representations of your home?

Pricing It Correctly

House Pricing

We’ve mentioned in previous posts the story of our client’s uncle who offered the following home sale pricing formula:

“Save every receipt for every repair and improvement you have. Then, add that to the original cost of your home, factor in inflation, and that will determine your asking price.”

That’s a sure method to under or overprice your home. A good Realtor will know your market, and after viewing your home, he or she will quickly know the price range in which your house will sell. Overpricing a home can be slow death as you watch the market ride it down, and while underpricing can produce a quick sale, you can lose thousands.

Perception and Agent Boycott

For sale by owner homes can be negatively perceived by buyers because they may not want to deal directly with an owner. While an agent may reply quickly, an owner may not, and prospective buyers may shy away from any situation where communication may be lacking.

Some brokers do not like homes that are for sale by the owner and don’t want to deal with commission or legal issues with what they may feel is a grossly under-informed seller. Even if you know what you are doing, real estate agents may not care to even find out, as they may take their clients to a more traditional situation.

Tied Up Property

Do you know how to vet a potential buyer? Do you understand option periods?

Are you comfortable with financing contingencies? If you aren’t careful, you could have your property removed from the market and tied up for 30 or 60 days while you wait for financing that never materializes.

Realtors can help minimize this problem.

Commission v. Sales Price

Commission Structure

Finally, look at what you are paying for. Sure, six percent commission on a $200,000 sale is $12,000. But that $12,000 buys you a great listing, instant MLS exposure, networking with other Realtors, legal diligence regarding potential buyers and offers, and a person that is dedicated to getting your property sold.

In addition, you may get $12,000 more than you would have if you follow the Realtor’s suggestions about staging, landscaping and showing your property.

If these five reasons aren’t enough, remember that with a Realtor, potential buyers are screened before they are let into your home.

At C4D, we make home ownership possible by utilizing MN contract for deed. And yes, we’ll work with your Realtor to help your home ownership dream come true. We love traditional financing, but if you can’t get it, contact us.

MN contract for deed myths

Busting the Most Common Contract for Deed Myths

 1000 500 Sam Radbil
By:
0

MN contract for deed can be an excellent way for those with less than perfect credit to finance home purchases. Particularly in Minnesota, contract for deed has been a preferred home financing method for years as many people have credit blips and issues that allow banks to quickly turn them down. Contract for deed, however, is sometimes the victim of misconceptions and broad statements that just do not apply.

It’s Not Rent-To-Own

mn contract for deed

Rent-to-own is another alternative financing method, but it can be an issue for buyers. In a Minnesota rent-to-own scenario, a property owner will offer to rent to a tenant. The property owner then agrees to put a portion of the rent aside that the tenant can put toward the eventual purchase of the home. This is not necessarily a down payment but could be a credit. For example, a property owner could offer to place $200 of the tenant’s $1500 monthly rent payment toward the purchase of the home. If the tenant made 36 on-time payments, the seller would then give the tenant credit for $7200 toward the purchase of the home. The problems with this are:

  • The money doesn’t really exist after it has been paid to the landlord.
  • It only is booked as a possible credit.
  • If a purchase price hasn’t been predetermined, the landlord could just raise the price of the home by the amount of the credit.
  • If the tenant is late on only one payment, all credits can be forfeited.

Minnesota contract for deed doesn’t work like this as we will explain below.

MN Contract for Deed is Not Predatory

How Rent to Own Works

In other states, rent-to-own and similar contracts for alternative financing are called executory contracts and are not liked by state courts.  The reason for this is that unscrupulous property owners would find un-creditworthy victims, receive a substantial down payment, sign them to a contract that requires big monthly payments, and add clauses that forfeit the down payment if even one monthly payment is a day late. Then the property owners would evict the tenant and start the process again.

MN contract deed is different, again, as we will explain below.

It’s Not Only for Those with Bad Credit

Business owners know that even with good credit it may be difficult to purchase a home. Take the example of a restaurant owner that has paid every bill on time, but he or she may have high student loan balances, high business credit balances, too many business credit cards, multiple vehicle payments and other debt. Throw in a recent divorce, and that busy successful entrepreneur may have issues getting financing.

This is a case where MN contract for deed could help.

Contract for Deed Credit

How MN Contract for Deed Works

  • You find a Realtor
  • You find a home.
  • You bring the deal to C4D.
  • We buy the home.
  • We sell it to you using a contract for deed.
  • You make all of your payments.
  • You get the deed, and you are a homeowner!

If you have any questions about us or our MN contract for deed process, be sure to contact us. We make deals where others cannot, and we have an impressive list of homeowners that would still be tenants if they had not come to us.

Costly First Time Homebuyer Mistakes

Avoid These 4 First Time Homebuyer Mistakes

 1000 500 Sam Radbil
By:
0

You’re ready to make the move from a rental unit to your new home. You’ve checked and updated your credit, and you are ready to look for properties. You have saved a nice-sized down payment and you are set to pull the trigger. Be careful, however, that you don’t make one of these crucial first time homebuyer mistakes.

First Time Homebuyer Mistakes #1: The Wrong Agent

First Time Homebuyer Mistakes

Let’s be clear. You don’t need to be represented by a real estate agent at any time during the purchase process to avoid making a first time homebuyer mistake, but many buyers like to contract with an agent because:

  • It’s free! The buyer pays the commission.
  • You have instant access to MLS listed properties.
  • The agent does the negotiating.
  • You never have to meet the owner except maybe at the closing.
  • The buyer can be a great information resource.

Homebuyer Mistakes

If all that’s true, what could be the problem? Well, the wrong agent could slow down the buying process because:

  • They are too busy.
  • They don’t have sufficient market knowledge in your area.
  • They are inexperienced.
  • They are not ethical.

Therefore, make sure you have carefully vetted your agent, and that you are comfortable that they are reputable, knowledgeable, ethical, and are not overloaded with clients. Also, at the initial meeting, understand agent contact rules. While you may expect instant answers to your questions, real estate agents and Realtors do have other clients, and you may have to be patient at times.

First Time Homebuyer Mistakes #2: Wrong Lender

Many entities make mortgages. Banks, credit unions, private lenders and even Internet banks regularly offer mortgages. This is one area where you need to do your homework and understand the difference between 15 and 30 year mortgages, for example, and all of the implications thereof. Mortgage rates can vary, so don’t take the first deal that’s offered to you. Later, we’ll talk a little about MN contract for deed financing.

First Time Buyer Errors

First Time Homebuyer Mistakes #3: Falling in Love with a Property Too Soon

Just because you have always wanted a great lawn and the first property you see has impeccable landscaping doesn’t mean you have to buy it at any price. Sure, it might be great to live there, but you are not living there now, and other homes are available. Don’t get caught in bidding wars (here’s how to win a bidding war, should you encounter one); see lots of houses before you make a decision. This isn’t HGTV where you get three options and that’s it.

First Time Homebuyer Mistakes #4: Wrong Neighborhood

If you are from out of the area—especially if you are from a different state—it’s extremely important to gain total knowledge of the municipality before you make a move. A first time homebuyer mistake, at this point, would be terribly expensive.

There are many stories of first-time out-of-state buyers that purchased a home in what they thought was a desirable location, only to find out six months later that they would have liked to have located somewhere else. Viewing many properties on the same day in an unfamiliar city can just be a blur. Sometimes renting a home in a new city before you buy is a good option since that will give you time to figure out exactly where you want to live.

First Time Homebuyer Mistakes

It’s all about good Realtors and agents, proper financing, not making rash decisions, and of course choosing the best location. Sometimes everything works out except the financing, and if that’s the case, don’t give up, because we’ve helped many persons that, for a number of reasons, just can’t qualify for a mortgage. We use MN contract for deed, and we invite you to visit our site to learn how we make home ownership a reality when others have said no.

Second Mortgage

A Second Mortgage: Should You Take It Out?

 1000 500 Sam Radbil
By:
0

We know from the economic meltdown that began in 2008 that using your house as an ATM may not be the best idea. A fat line of credit that can be accessed with a debit card or even checks can be quite tempting, but that doesn’t mean that you should automatically think about taking out a second mortgage loan to tap your equity—unless you have a good reason.

Taking Out a Second Mortgage: Not So Good Reasons

You should only borrow money if you need it. That may sound simple, but in some countries, people borrow money simply because they can. Even in the U.S. in the early 2000s, many people based their “wealth” upon the amount of money they could borrow. Some people with only $5000 in savings but with $100,000 of available credit thought they were well off because they had the ability to raise a substantial sum. Therefore, they acted upon any chance to borrow money and loaded up on credit lines. If you are borrowing money only because you can, that’s not a good reason.

Taking Out A Second Mortgage

Taking Out a Second Mortgage: Finances are Tight

This happens for a reason. If you spend more than you make, you will be cash-flow negative, and that will cause you to borrow. If you have amassed considerable credit card debt, it may be very tempting to take out a second mortgage at a lower combined interest rate and pay off those cards. Seven or eight percent is a lot better than 27.9 percent, but if you don’t cut up your cards after you have paid them off, you may not be able to resist the temptation to max them out again.

Finance are Tight

You Just Need Some Breathing Room

Breathing room is great, but if the forces that are suffocating you are not dealt with, you won’t make any progress. If your $800 monthly utility bill is killing you, turn down heat, turn up the A/C, quit watering your lawn or turn out the lights. If you don’t act, you’ll soon see another $800 energy bill, and you’ll have to figure out how to pay that. Borrowing against your home for monthly expenses that you can’t reduce is not a good idea. Instead of this, start looking for the best side hustles that allow for some extra income!

Economic Stimulus

Some Better Reasons for Taking Out a Second Mortgage

There are, however, some good reasons to borrow against your home:

  • You’re starting a business.
  • You want to go back to school and can’t get reasonable student aid or loans.
  • You want to help a family member.
  • You want to start a remodeling project that will increase your home’s value.
  • You want to assist your children with some expenses.
  • You found a great investment opportunity.

Like any other loan, make sure you shop around to get the best terms.

The Contract for Deed Crew

While we don’t do second mortgage loans, we at C4D can assist you with the purchase of your home. We are more flexible and understanding than a lot of banks, and we are experts at using the MN contract for deed as a path for true home ownership. If you have any questions, visit our site. We are here to help!

Pest Inspections

5 Pest Inspections Before Moving Into A New House

 1000 500 Sam Radbil
By:
0

Moving to a new home, for the most part, is thought to be an enjoyable experience. Sure, the unpacking, moving and general moving process might come with a few stresses, but overall it’s quite exciting.

However, stepping into your new home, or a property that you’re looking to buy or rent and noticing that there are signs of pests will make you want to turn around and leave. The first question you might be asking is ‘why didn’t they fix the pest problem?’ And while that’s a legitimate question, some pest problems are very discrete and can only be noticed by those who know what signs to look out for. But a thorough pest inspection is now necessary.

Spotting pests can be tough, especially bed bugs, ants and small rodents. These pests know how to remain undetected, at least to the untrained eye. Below are the 5 common signs there is a pest problem in the property you’re looking to purchase.

Inspect the Flooring

One of the most telling signs the property is suffering from a pest infestation is the state of the floor, specifically the carpet. Bed bugs, despite their name, will set-up camp anywhere that’s warm, dark and discrete.

Check the corners of the carpet and inspect furniture, curtains, sofas. These are all hotspots

. Even if the furniture won’t be there when you move in, bed bugs are likely to find a way to remain. Pests will however, have a tough time finding a way into or under concrete flooring. So, if you are contemplating moving into the property, be sure to have the carpets cleaned professionally or at least inspected by a professional pest control company.

Search for Smears and Marks

While it’s important to check for leaks, be sure to also check for any areas where there are marks or smears, as this may be a sign of cockroaches and/or rodent infestations. These spots are commonly found inside cupboards, floorboards and at the back of cabinets. While it may seem strange looking for these signs, identifying them and addressing it to your potential landlord or real estate agent could save you time and money. It also means you won’t have to solve the problem yourself.

The bedroom is another place you will want to look for smear marks, as if there’s and abundance of them, it’s highly likely there’s a bed bug infestation. Again, if this is the case, you must ensure that you have the problem inspected by a professional pest control expert. Bed bugs won’t necessarily cause you too much harm, but they are unsightly and can make your nights restless and grim.

Floorboards – Check Them!

Mice and rats are adept at hiding, even more so than insects. Ever hear scuttling late at night? It’s likely that a mouse or rat is under your floorboards, in your roof or even in your walls. Rats especially are masters of squeezing their way into tight areas to build nests.

Lookout for bite marks, chewed areas on wood and scratches on furniture and walls.

Look for Cracks and Fissures on the Exterior of the Property

Spotting cracks and fissures on the outside walls of the property is incredibly important. These gaps make for perfect entrance areas for pests such as wasps, ants, spiders and other unwanted insects. One of the worst-case scenarios is if wasps have already infiltrated the walls, as it’s likely that they have done this to make a nest.

While the usual fix for cracks and fissures is sealing with concrete, filler or other sealants, doing this with the wasps inside may make matters worse. Wasps are able to eat through dry wall, so before you seal the wall, spray soap solution into the crack (only if it’s safe to do so) as they will suffocate. After this has been done, seal the wall with sealant.

Of course, you can always wait until the colder months arrive, as they won’t be able to survive the drop in temperature. Following this, inform your landlord and/or the real estate agent and they will contact a pest control expert to fix the problem.

Pest Inspections in the Garden

If you’re moving, or viewing properties in the summer, be sure to check for any wasp, ant or insect nests that may be hiding in the garden. It might be that the garden has been vacant for some time and wasps have set-up a colony there. Unless you’re experienced in removing wasp and bee nests, contact your real estate agent and they will seek an appropriate pest control expert.

Additionally, you might find that the exterior has been affected by nesting birds, specifically the excrement they leave behind. Bird control is something that is commonly forgotten about because of other more prominent pest problems (rodent and insect infestations) but is still something that needs to be acknowledged.

These are 5 of the most important pest inspections you need to get into the habit of doing when you’re viewing a a new house with your real estate agent in Minnesota or all across the country.

Minnesota Realtors: More Contract For Deed Deals

 1000 500 Sam Radbil
By:
0

Some Minnesota Realtors view the current economic situation as murky with darker clouds on the horizon. Interest rates are moving higher and some mortgage rates have crossed the psychological five percent barrier. Top luxury home prices in places like Austin, TX have begun to stagnate and actually drop. While unemployment is at record lows, inflation is starting to re-emerge as a threat, the price of oil just recently fell from a six-year record high, and of course there is geo-political chaos. None of these factors are good for the housing market.

Minnesota Realtors Change in Real GDP

The Comeback of No-Doc Type Loans

We are almost 11 years removed from the Great Recession that began in 2008. Some new to the real estate business may have been in their early teens when this occurred and may not remember, but no-interest and no-doc loans were part of the problems that ultimately crashed the economy.

One of our older CD4 clients tells us that they were able to get their original home mortgage with a one-page typewritten business profit and loss statement. The mortgage loan officer said, “Are you making money?” and when he got an affirmative answer, they were approved.

In the early and mid-2000s, people used their homes as ATMs, and loan officers aided by appraisers approved scores of loans. Some were no interest, some were adjustable rate, and many were made without any debt-to-income ratio verification. If someone showed that their business cash flowed significant dollars, profits and income were ignored.

Check Out CNN Lately?

Listen to CNN today and you will hear ads for a mortgage company that claims that profits don’t matter–only cash flow does. When companies can advertise nationally and get customers for low documentation mortgages—even in view of what happened in 2008—it’s time to take notice and get worried.

CNN Real Estate

The Next Time for Minnesota Realtors

The U.S. economy is cyclical, and after the second worst downturn in history, we have now seen the longest recovery. Even though there are those that say “Well, this time is different,” savvy Realtors know that is not true. The next recession–whether it’s almost here or won’t arrive for another year–will cause difficulties for Minnesota Realtors. When the GDP falls, the stock market retreats, and interest rates go up, money tightens and loans can be hard to get. And therefore, you need C4D.

Global Trade Contract For Deed

What We Do

We at C4D use MN contract for deed to help prospective homeowners that were rejected for traditional financing to realize the home ownership dream. We use our strength and knowledge as we buy homes and then resell them to your clients who were rejected for traditional financing or unable to obtain it. Yes, your clients need a job and provable income, but we can work with issues like divorce, tax liens, garnishments, bad credit and large student loan balances. We can help where others have failed.

Listen, we do not want to see an economic downturn, and we genuinely hope that one day all of our clients will be able to get traditional financing. Until that time comes, however, Minnesota Realtors can call us with rejected deals and we’ll see what we can make happen. We’ve helped a lot of people.

How to find a good minnesota realtor

How To Find A Great Minnesota Realtor

 1000 500 Sam Radbil
By:
0

How to find a good realtor? If you’ve tried, well, you’ve probably realized it’s not as easy as it sounds, right?

How to find a good realtorFirst, there is a difference between a Realtor and a real estate agent. You can be a real estate agent without becoming a Realtor. If you are licensed in your state, you can help people buy or sell commercial or residential property. The State of Minnesota publishes a detailed booklet that explains the real estate licensing process, and you can find it here:

http://mn.gov/commerce-stat/pdfs/re-license-guide.pdf

But don’t confuse licensed real estate agents with Realtors, because there is a difference. According to inman.com, “A Realtor is a trademarked term that refers to a real estate agent who is an active member of the National Association of Realtors (NAR), the largest trade association in the United States.” NAR has certain requirements and members must first agree to abide by its ethics code.

Finding a Great Realtor in MN

It doesn’t matter where you’re coming from; you might be moving from a small Cincinnati apartment to a Minneapolis single family home, but whether you contract with a real estate agent or a Realtor, it’s important that you know how to vet and find the person that best fits your needs. And bankrate.com says that these seven items are paramount.

Talk with agents’ recent clients.

At the first meeting, ask for a list of clients. If these are all relatives, beware, because your prospective agent may not be very experienced. Look for a track record of satisfied clients that are happy to provide referrals. While you may want to help a new agent break into the business, that may not be in your best interest.

Check for license and disciplinary actions.

Licensed real estate professionals are regulated, and if they have been disciplined, there will be a public record of this. Some ways agents get in trouble are:

  • Forgetting who they represent.
  • Co-mingling client funds.
  • Seeking kickbacks from lenders.
  • Showing incompetence.
  • Forgetting that the interests of the client should come first.

Ask about professional awards.

OK, so million-dollar club status is not that hard to obtain, but awards do show that agents or Realtors have sold some properties.

Here’s a rundown from another experienced professional:

Select an agent with the right credentials.

If agent Paul Johnson sold your wife’s office building, that doesn’t guarantee that he knows anything about residential real estate. Similarly, an upscale Realtor that specializes in the Milwaukee suburbs may have a tough time understanding how to sell an inner-city property.

Realtor Credentials

Find out how experienced an agent is.

How many clients? How many closings? How many accepted offers? How many failures? How many rejected deals? Ask these questions.

Look at the agent’s current listings.

If your prospective agent’s listings are all rural farmland, and you have a downtown condo to sell, you may have the wrong person.

Gauge the agent’s knowledge of the area.

Does your agent know the schools? The shopping areas? The crime rates? What the last 10 sales have been? A negative answer means you should look elsewhere.

Getting It Done

Most of all, you need to find someone that can get the job done. We at C4D are like that, because we specialize in MN contract for deed financing. We love traditional mortgages, but if you can’t get one, tell your Realtor to contact us ASAP. We can help where others have failed!