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While settling into a new contract for deed home can be very exciting, it seems that the moving on a budget part is often a stressful experience. Aside from the stress of the actual move, switching up your location can be hard on the wallet too, especially for new homeowners. Financial stress can wreak havoc on your move, so here are seven tips stay within your budget and even well below it!

#1: Move During the Off Season

If you want to use a moving company, they will be the busiest during the spring or summer months, particularly on the weekends at the beginning and end of each month. Making some changes to switch to a less popular date or time could save you a substantial amount when moving on a budget.

#2: Check the Cost of Shipping Your Stuff

Depending on the number of boxes you have and how far they must travel, using snail mail might be more cost-effective than hiring a mover. Do your research to find out what will work best for you and your stuff, which could even end up being a hybrid of a few options such as hiring movers, shipping, renting a truck, or just moving it yourself.

If you’re flying, you might consider taking a peak at the best checked luggage options, to make an educated decision.

#3: Eliminate the Stuff You Don’t Need

The less stuff you have, the easier your move will be. With that in mind, take stock of all your belongings before you pack them up. Ask yourself, do I really need this? If not, you can donate it to your local thrift store, or even host a garage sale if you have enough items to sell. You will thank yourself later when you have to unpack fewer boxes at your new place!

#4: Find Free Boxes

There are so many free cardboard boxes out there; you just need to know where to find them. Rather than purchase new moving boxes, going around to retail stores, schools, offices or even liquor stores to gather boxes will save you a lot of money. Many of those businesses will be happy to give away boxes, as they were going to be broken down and recycled anyway.

#5: Throw a Packing Party

Moving is inherently stressful, but there’s nothing that cures stress like letting loose and having a party! Infusing boring activities with excitement will make your moving experience far more enjoyable. Making some of your favorite snacks, curating the perfect playlist, inviting your best friends over and ensuring there is an enticing reward at the end will turn a seemingly boring chore into a fun-filled day. It can also be a great time to reminisce and say goodbye to the space you’re moving out of, giving closure to those cherished memories.

#6: Use Packing Materials from Around the House

Like buying boxes, buying bubble wrap or packing peanuts is a waste of money (and terrible for the environment too). Instead, use items you already have around the house to protect fragile things. Stuff like magazines, newspapers, blankets or even towels can pull double duty by both protecting your fragile items and saving space by not requiring more boxes to transport themselves. Increasing efficiency is how you decrease cost, so it’s essential to look around your house before pulling out your credit card.

#7: Moving on a Budget by Yourself

Hiring a moving company comes along with a certain peace of mind, but most moves can be easily accomplished without professional help. Call in a few favors from your friends and make a day out of it! Remember, buying a meal for everyone at the end of the day will be much cheaper than renting a truck or employing an entire moving crew.

Final Thoughts

Another option to consider is buying a home that is already furnished, which significantly cuts down on the amount of stuff you need to move.  Especially if you are purchasing a vacation home, it is more convenient to purchase fully-furnished. Fractional homes are a great vacation home ownership option that typically come decked out in top notch interior design.

Keeping these tips in mind will certainly help relieve some of the financial stress of moving, but it is important, no matter where or how you’re moving, to make as detailed a plan as possible. Being organized can help decrease stress and make for a happy transition into an exciting new place!

Real estate social media is here to stay, and true professionals need to know how to make it work for them.

The days are gone when Realtors could put all of their listings on MLS, send out a newsletter, hand out cards and wait for the business to roll in. The pre-2020 real estate buyer or seller uses real estate social media to find agents and properties, and you need to know how navigate that area. Following are six ways you can use real estate social media to your advantage:

Real Estate Social Media: Instagram

According to Meiggs, it’s key for Realtors to grow more Instagram followers and post photos regularly. This is important!

New listings, sold homes, before and after pics of landscaping you suggested that improved curb appeal and resulted in a sale and even just holiday greetings will help generate buzz about you and your company. So, remember, growing your Instagram followers can be a huge help for your business.

What About Facebook?

You need to be there, your company needs to be there, and when you engineer sales you need to post that good news there also.

Facebook is like social media marketing 101, and you need to be fluent on this platform. Understand how to post, how to drive traffic to your pages, and how to advertise if you have the cash to do it.

Are You Using Twitter?

The current U.S. president certainly understands the power of Twitter as he can instantly reach millions of followers.

As you gain followers, your new listings can be sent as soon as you have signed the client, and that’s a lot of quick and free advertising for you.

LinkedIn is Hugely Important

You will be vetted by prospective clients, and a lot of them will search for your LinkedIn page.

If you don’t have one, your credibility will take an instant nosedive. Furthermore, your LinkedIn site—which some call Facebook for business—needs to be current and updated regularly. A stale LinkedIn page can almost be worse than not having one at all.

Be Hands-on with Real Estate Social Media

While you may not always embrace DIY, if you are able to do you own social media marketing, you can quickly disseminate information that will benefit your business. New listings, properties under contract, and completed sales can be acknowledged as they happen.

If you don’t feel comfortable managing your own social media accounts, look carefully for someone that will move quickly and handle the job efficiently.

Sending a Newsletter?

Our last tip is a bit old-school, but a monthly newsletter can provide clients and those on your mailing list with lots of great info about the local real estate market.

Newsletters are a great addition to real estate social media platforms and you will find many clients that look for your monthly newsletter with great anticipation. You can use email or snail-mail for this.

As you know, getting the offer is one thing and seeing a deal through financing is another.

With mortgage interest rates nearing the formidable five percent range, you may have clients that just can’t qualify for a conventional mortgage loan. If this happens, be sure to contact us at C4D. We are the MN contract for deed experts and we find a way to get difficult deals done. Don’t let any deal die without contacting us first.

If you are a member of a minority group, you may have a more difficult path to a minority home loan. If you don’t come from generational wealth, financing could be a huge problem.

Everyone faces obstacles when contemplating their first-time home purchase, but these difficulties can be more pronounced and harder to overcome if you are a minority home purchaser. Let’s look at the top five:

Insufficient Income for Minority Home Loan

The debt-to-income ratio calculation is a method used to determine whether a prospective applicant for a minority home loan can afford the purchase.

While this number varies, many lenders and government agencies use 43 percent as the figure. In other words, no more than 43 percent of your income can go toward your mortgage payment. Even if you have a great credit score, your income may be too low for your minority home loan.

If you’re struggling, you might want to look into some side hustles and learn about more passive income ideas.

Down Payment Trouble

Image credit: zillow.com

You may have great credit, a steady job, and a promising future, but if you haven’t been able to save for a minority home loan down payment, you may have to access available aid sources. A gift from a relative, or loan from Minnesota Housing, a legitimate governmental agency are two places to look.

Access to Credit

Let’s face it, even in 2018 you may still encounter racial bias when applying for your minority home loan. Check out these North Carolina statistics from WUNC:

“For all 203,939 loan applications in North Carolina in 2015 and 2016, 52,881 were from minorities, and had an overall denial rate of 11.5 percent. 151,058 were from whites, and had an overall denial rate of 6.3 percent.

In 1,415 of North Carolina’s 2,117 Census Tracts where at least one loan application came from a person of color, the loan application denial rate was higher for minorities than for whites.”

High Prices for Minority Home Loan

We mentioned the 43 percent debt to income ratio previously, and we know that since the 2009 recession, housing prices have dramatically increased.

If your debt-to-income ratio will only qualify you for a $150,000 home but there are none available in that price range, you can be out of luck. Higher home prices impact everyone, but while the wealthy can usually find a way to get their deals done, first-time minority homebuyers with good credit but low incomes can have a problem.

Just take a look at the graphic below from ABODO showing where minorities are buying the most and fewest homes. Interesting, huh?

Image credit: abodo.com

Minority Home Loan with Bad Credit?

Creditcards.com tells us that:

“Minorities are less likely to have access to credit than white Americans. (Recently), 20 percent of whites did not have access to a credit card compared with 47 percent of African-Americans and 30 percent of Latinos.

African-Americans and Latinos are less confident that they will be approved for credit than whites. In (recent years), 67.7 percent of whites were very confident or somewhat confident that they would be approved for credit, compared to 45.3 percent of African-Americans and 53.7 percent of Latinos. While 19.5 percent of whites were not confident that they would be approved for credit, 28 percent of African-Americans and 30.7 percent of Latinos were not confident.”

If you are a minority, the simple act of applying for credit may put you at a disadvantage. And earning money is tough, much like using the best survey sites to make a quick buck can take a while.

While minorities may face uphill battles on the path to home ownership, MN residents should look to contract for deed as a great alternative to traditional financing. If you need more information, contact us — an excellent place to start.

The title of this post should really be “Five Renovations That Add Value to Your House THIS Year in YOUR Local Real Estate Market.” The five best projects to do before you sell will depend on the year and your location. That said, home renovations on a budget can take a lot of work. 

Health/safety issues and other big red flags should always top the list. If the roof leaks, your foundation cracked, or the walls contain mold, solve these problems.

After that, invest renovation dollars in appearance and the impression your house makes. Do the research: check the 2018 Cost vs. Value Report, and ask your realtor how to be competitive in your market.

Curb Appeal is Out in Front

A house makes its first impression from the curb out front, which is why Curb Appeal consistently ranks #1 for Return on Investment. A lush lawn, for example, whether it needs reseeding or grooming, will repay what you put into it. As will well-tended plants and an inviting front door area with fresh details and good lighting.

The Cost vs. Value Report recommends some other projects for 2018. Replacing the garage door had the highest increase in ROI, up 18.6%. Outdoor living space has been a buyers’ priority in recent years, so the ROI for adding a wood deck is now up 17.7%. And, the report says, stone veneer is currently popular.

Kitchens and Bathrooms Count

Good kitchens and baths add value: People spend time in those rooms every day, and buyers often don’t want to take on expensive remodels. But buyers also don’t expect a house to be brand new, so you can add value without a full renovation.

The cost-conscious 2018 Report suggests that a little renovation is enough, and inexpensive small projects add up. Fresh paint, a new faucet, new lighting fixtures, and simple, matching pulls on cabinets and drawers go a long way, while refinishing cabinets costs much less than replacing them.

It’s important to ask your agent about the market before you make plans for home renovations on a budget. If comparable homes for sale all have granite countertops, you might need to invest to keep up.

Energy and Weather Upgrades

What is true for countertops is also true for energy upgrades. You might assume, for example, that today solar power and panels are always a winner. If everyone around you does have them, that’s one thing. But if not, think carefully about this renovation.

In some climates, solar panels just can’t bring ROI. They can even turn buyers off because technology changes so rapidly; like the latest phone, home technology becomes yesterday’s news fast. Also, leased panels add to the monthly payment. Realtors have found this added cost discourages buyers despite the panels’ money-saving potential.

However, no matter where in the world you live, there are always ways to make your home more energy efficient.

Depending on your climate, good weather-proofing around doors and windows, and servicing or replacing the HVAC system, can be a better investment. Attic insulation, where applicable, has always had high ROI. Some communities even offer free energy-efficiency assessments and advice that can help you add value.

Wonderful Wood

The wood floor remains eternally popular, for practical and aesthetic reasons. If you have wood floors, refurbishing them to look their best is worth the investment. You may not get full ROI, but floors are a large visual in any house, and beautiful wood floors have a “wow” factor.

If you don’t have wood floors, you may want to invest in them, or in laminates that resemble wood but cost less. After all, you are moving out, and it’s important to think like a salesperson.

Home Renovations on a Budget

Whatever home renovations on a budget that you choose, don’t underestimate decluttering, deep-cleaning, and staging. Realtors agree they are key steps to presenting a home that prospective buyers can imagine living in, and that is what sells houses.

All your personal stuff, signs of everyday life, and anything other than minimal, fairly neutral décor, needs to disappear. Let people see the house itself, a house where they could potentially live, rather than the house where you live. Remember to declutter closets and storage areas, too, to highlight their spaciousness.

Deep-clean the house from ceiling to floor, including washing walls, cabinet corners, and inside appliances. Buyers will notice and like sparkling cleanliness, which often does increase their offers, adding real value. Don’t neglect smells as part of your cleaning.

Staged homes consistently sell more quickly and for more money than empty homes. You or a professional stager can arrange rooms for easy flow and to display the lifestyle the house offers. Emphasize features like fireplaces and views, and define “extra” rooms as offices, family spaces, etc. Create vignettes that give spaces atmosphere and tell a story. These steps matter outside as well, so declutter and groom your landscaping, and stage outdoor living areas.

No amount of renovation will compensate for a cluttered, dirty house. And these three steps are the frosting on the cake of your other home renovations on a budget.

If you’re looking for a home to get started in Minnesota — contact us today!

Need help with some home renovation tips? We know, the thought of renovating your property can be both exciting and slightly daunting. Figuring out what needs to be done is one thing, but putting your plan into action and locating the necessary tools can soon seem a bit too much. However, it doesn’t have to be such a stressful ordeal. But according to A+ Kitchen & Remodeling, “Home renovation doesn’t need to cost an arm and a leg. If you know what you’re planning on doing, and you follow a home remodeling & renovation guide, plus only buying tools that are essential to get your plans underway and eventually completed — it doesn’t have to be that difficult.

This time, we’ll be looking at the essential tools you’ll need to help get your renovation project underway.

The Hammer

Surely this goes without saying but owning a hammer is absolutely essential. It’s arguably the most essential tool for your house. They are ideal for hanging up posters, knocking in nails, pulling out nails and aiding any general fixes around the house. While it’s fairly difficult to go wrong buying a hammer, there are a few things you may want to look out for. First, ensure it’s drop forged. This means it’s been made with more care and will last longer. It will be more expensive but it’s far less likely to rust.

The Ladder

Another household essential, owning a ladder will see you experience fewer problems when trying to reach areas that would usually prove difficult. We won’t list all the obvious advantages of owning a ladder, as there are too many. What will we say, is that owning a ladder will help you solve problems such as changing light bulbs and hanging frames with ease. Otherwise, you may try and balance yourself on a chair, table or something without the structural stability of a ladder, and this is a health and safety concern.

The Hand Saw

If you’re not too keen on spending a small fortune on a power tool, stick to a trusty handsaw, or even a tracksaw for that extra safety. At some point, it’s going to come in handy, whether it’s for a quick DIY job, or cutting wood for the fire in winter, handsaws are handy to have around the home. Additionally, they’re not that expensive to buy!

The Drill

For those who see themselves as avid DIYers or remodelers for luxury, this is essential. While having a hammer is essential, a drill comes in handy whenever you need to fix loose screws and fittings, as well as making light work of new additions such as wall hangings. Drills essentially speed up your renovation process. Instead of spending time screwing nails into a new door, or stabbing your hands with screwdrivers, drills relieve that pressure and the simple hit of a button.

The Pliers

Pliers will come in useful when you need to pull out those nails you incorrectly drilled into your new wall! Again, pliers will come in handy in almost every DIY project. Additionally, they’re fairly inexpensive for such an important tool.

The Tape Measure

Another classic tool you’ll be needing to renovate your property is a tape measure. Easily forgotten, but incredibly important, the tape measure is your best friend when it to comes to home renovation. You’d find it pretty difficult to begin a home renovation without a tape measure, as measuring would become, well, pretty much impossible. When it comes to building projects, you’re going to need a tape measure, otherwise things are left wonky and you’ll be wasting time!

The Level

Last but not least, the level. When it comes to home renovation, there’s nothing worse than setting up a shelf, only for the leveling to be off. This doesn’t just apply to shelves, every project you undertake in your renovation may require a level at one point. Buying a level will save so much time when it comes to determining if something is level or not.

Home Renovation Tips: Tool Wrap

These are the 7 tools your home renovation cannot be completed without. While they are fairly obvious, you’d be surprised to know how many people forget to purchase such tools, even when there are coupon websites available to them. The above items won’t even set you back too much, yet, their role in your home renovation project cannot be undermined. If you do require a tool that’s not on the list and you’re not keen on spending a fortune on a tool you’re only going to use once, then tool hire might be an idea for you!

Better yet, buy a toolbox to keep these in! Except for the ladder, as you may have some trouble fitting that in. If you’re a homebuyer, you will not regret owning these tools. 

We all know that mortgages (there are many different types of mortgage loans) were the problem that caused the 2009 economic meltdown. Remember the movie The Big Short?

And while it was very difficult to obtain even the most basic and standard mortgages in the first few years following the crisis, things have begun to loosen up, and you now do have some different options.

The Standard Mortgage Loan

Your parents probably got a 30-year mortgage. That meant that the total amount of their loan was divided into 360 equal payments. The word “equal” can be deceiving, however, because the amount of interest v. principal collected for every payment varies. At the beginning of the loan, most of the payment goes toward interest, while the smaller remainder is applied to the principal.

Types of Mortgage Loans: An Example

With a $300,000 standard repayment 30-year mortgage at 5.25 percent, the payment amount would be $1657. In month one, $344 would go toward principal with a whopping $1313 applied to interest. By year 30 this changes drastically, and the last payment provides only $7 toward interest and the rest finishes off the principal. Note that this arrangement greatly benefits the bank, because during the first few years of the mortgage, most of the payment goes toward interest and you basically make no progress paying down the loan. This is why it is a good idea to make sure you are going to stay in a home at least for five years if your goal is to pay down the principal.

The 15-Year Mortgage

Years ago, 15-year mortgages were introduced. Our same $300,000 loan paid off in 180 equal payments over 15 years instead of 30 would cost $2412. Sure, that’s $755 per month more, but if you followed the 15-year amortization schedule you would not only have your home paid off in only 15 years instead of thirty, but you would save $135,900! If you could make the larger payment, the 15-year mortgage is the way to go.

The Adjustable Rate Loan

These mortgages can be trouble, but they do have serve a purpose. Persons with lower credit scores can sometimes qualify for a mortgage with a floating rate. If general interest rates rise, so could your mortgage payment. If they fell, your payment could stay the same or actually decrease. The problem is, a two percent rise in interest rates would cause our $300,000 loan to rise to $2047 per month—a substantial increase.

Interest Only Mortgage Loan

While these loans can lower your monthly payment, you make absolutely no progress paying down your principal. These can work for flippable properties, but should be avoided for primary residence purchases.

Exotic loans like these are what caused the beginning of the last major housing crisis, and banks may not be very willing to make this kind of deal in the post-2008 era.

You Can’t Qualify?

Like we’ve said before, it would be great if everyone could go to a bank and get a traditional mortgage. Sometimes, however, because of credit issues, job loss, divorce, tax problems, or many other circumstances, the bank just says no. If this happens to you, don’t give up. We at C4D have developed a system where we use MN contract for deed to get you into a home. We deal with compromised credit every day, and we urge you to give us a call or email us before you just decide to keep renting. We’ve helped a lot of people!