Investment Property Mortgage: How to make great ROI off an investment property
Everybody knows somebody that makes money off of investment properties. Why couldnt it be you? You can now get a mortgage on investment properties the same way you would a normal home. Some of the details and requirements are different but the basics are the same. You can buy a home for a certain amount down, and then rent it out to pay your mortgage payment. The rest is money that you can either use to pay off the home faster or you can use it just as you would any other income.
In Grand Rapids especially there are many options for investment properies. A mortgage on an investment property might seem like a big investment at first but if you buy in the right city it can pay off quickly. A $75,000 home for example might leave you with a payment of around 550 a month for 15 years. If the home has 2-3 bedrooms you can easily expect to collect upwards of $800 per month in rent.
Investment property financing can often be tough but Treadstone Mortgage has experience in helping local people increase their financial stability through wise decisions on investment properties. At Treadstone financing investment properties is not just something we do professionally it is also a hobby.
Investment Property Mortgage Requirements & Guidelines
- Minimum 20% down payment but buyer can secure a much better interest rate (translates into long term savings) if you put down at least 25%.
- Seller can only pay a maximum of 2% of the buyer’s closing costs
- Cash Reserve Requirements*
- Credit Score Requirements*
- House you purchase must meet certain safety standards before you can ethically and legally rent it out.
- Zoning requirements*
All of the Asterisks** exist because different cities, states, and loan programs have slightly different requirements depending on purchase price and a myriad of other factors. Once you call to set up a consultation we can help you figure out the investment property mortgage requirements that will apply to you. Call today. 616 774 9160.
Grand Rapids– Mortgage Companies in Grand Rapids, MI
One of the hardest parts about buying a new home is often just finding the right mortgage companies to work with.
The biggest issues when choosing a mortgage company are honesty and location. You want to work with someone who is in the same local area as the home you are planning to buy.
Honesty and communication are also important factors and it is extremely important that you work with a mortgage company in Grand Rapids, MI who is always available to answer your questions. Often times local businesses have the best communication and will be able to get your loan done expediently.
One good mortgage company in Grand Rapids, MI is Treadstone Funding
Treadstone Funding has teams that specializes in all major loan types in cluding FHA 203k mortgages (great for repairs), VA Mortgage Loans, Zero Down Loans, and even escrow repair.
Treadstone is a growing company that is always hiring new talent from the Grand Rapids area. If you are looking for a good local mortgage company with a great reputation in the Grand Rapids community check us out. You can see what people have said online. Many of our customers even leave us positive Google reviews. Just try, Google “Treadstone Funding” and see what people are saying!
How new Facebook Offers can Generate Actual ROI for Realtors and Small Businesses
Facebook recently launched a new option for small businesses called Facebook Offers. If you are a realtor or small business in Grand Rapids, MI or any other great town around the US the following article will describe some pro’s and cons of Facebook Offers.
Why? With Groupons and Living Social’s becoming ever more popular Facebook decided about a year ago that it wanted to get in the game as well. Most Groupon’s get shared to Facebook anyway so why not just eliminate the middleman and let businesses offer rewards to their customers straight through Facebook.
How & Why It Can Benefit Realtors and Small Businesses: This is where you have to be creative if you aren’t selling a tangible product. If you are a realtor it is a great way to get your message or service that you are promoting out to your fans in a way that is easy for them to share with others. On standard Facebook page posts you have to post something interesting and then add a call to action. With a deal or coupon for your service (check RESPA rules and violations) you can create a call to action that is by its nature “share-able”. Groupon deals in the past have offered waivered appraisals, gift cards at closing, free lists of hud homes, HD property photos at no extra charge, and even percentages off closing costs depending on state. And thats just real estate. If you are a local business not in a highly specialized field the options could be limitless.
How To: Facebook offers for business pages launched a couple of months ago and are at this point not yet available for use on all business Facebook Pages. If your page allows it you will see the option next to where it says, “status, or photo”.
Tips: To make an effective offer, show a picture of a client utilizing your service happily, and or include the financial reward to the customer that will induce more sharing. Also try to give away as much as possible, in terms of percents off things usually need to be more than 20% off small amounts to make people excited. For things like real estate the more creative you can be the more you will stand out. At the end of the day an Offer is like a status that gets more views.
If you need help marketing your real estate or small business career in Grand Rapids Michigan or nearby give Treadstone Funding a call our marketing department would love to help you. 616 774 9160 x 228.
Treadstone Funding is your source for Grand Rapids Home Mortgage Loans.
Top 5 Tips For Successful Realtors
So you are a Realtor eh? So are thousands of others throughout your city and the world, how are you going to shine? Well its hard work but overall it can be done as demonstrated by the hundreds of realtors in the US and abroad who truly are “killing it”. Below you will find our top 5 tips for successful realtors that come from just that… successful realtors and real estate executives.
Top 5 Tips For Successful Realtors
1. Be Passionate. Real estate is tough, if you are not passionate about it you wont be able to compete with those realtors who live, breathe, and drink it. Real Estate is really the same as any sport in that respect. You have to keep practicing and developing your passion but since it is more of your passion than work it doesnt weaken you but rather it makes you stronger.
2. Be Unique, Spend Unique. The classic addage that you have to spend money to make money is definitely in part true. That being said you have to spend money on the right kinds of marketing. Look at what others are doing and do something different, better yet do 3 things different. Cookie cutter approaches can serve as temporary solutions and may even bring in leads from time to time but they share one thing in common: the prices go up, and your competition figures it out quick, and at the end of the day the total leads coming in from this source dwindles to nothing. If you want marketing done, hire a creative marketing company or work with one. You dont necessarily need to work with a marketing company who already works for every other realtor in your town.
3.Outsource Wisely. You only have so much time in your day, and at the end of the day you can only do so much. So successful realtors must do their best to understand what they have to do themselves and figure out what they can hire someone to do. For many realtors this comes down to the fact that their bread and butter is selling or buying. If thats the case hire a part time secretary, hire a marketing intern, buyer’s agent, etc. Although this might not be the case or in the budget for someone who is just starting out it doesnt mean new agents cant adapt this strategy as well. New agents can form partnerships that work the same way.
4.Stay Connected. Be Connected. This tip could really encompass the whole “top 5 tips for successful realtors” list but its simple and yet is crucial and under utilized. Stay connected with every single person you meet and work with. We live at a time where we have phones, letters, email, Facebook, and more–there is no excuse not to stay connected to every person you have a number or address for. These are the people who are going to keep you successful when the market is hurting. Maintain an excel database of all past clients, friends, and people you know. Label, organize, and update. Be Connected to people in the local community. The more people you know the more you grow {your business}. Talk to your barista, talk to your maid, talk to everyone– they are bound to know people looking to buy or sell real estate and all they already like you. Remember that while phony experts come out every day touting the need to be on social media, at the end of the day the most successful way to use social media is just to keep in touch with your contacts.
5.Brand Yourself. Surround Yourself. These are almost two separate tips for successful realtors but they do relate. First you need to brand yourself as an expert in something or in some area. Give yourself a unique identity as a realtor or real estate professional. This helps you to evolve from just 1 of 1000 names on a realtor list to a specialized expert. Second surround yourself with peolpe who have similar values and who are just a little more successful than you are. Is your mortgage company driving you to succeed? What about your title agency and co-workers? Everyone you work with professionally reflects back on you. Make sure to work with quality local people who can not only make you try harder, but who can spread the good word of “you”.
Bonus Tip: Even the best realtors have off days. Always Stay Positive. Without positivity none of the other tips work. So get out there and help your customers and “may the odds be ever in your favor”.
(if you liked the above quote check out our blog about how real estate is like The Hunger Games)
Treadstone Funding is a Residential Mortgage Lender in Grand Rapids Michigan. Treadstone has been voted one of the best mortgage companies in Grand Rapids to work with by realtors, clients, and the local community. See how Treadstone Funding can help take your real estate career to the next level.
Grand Rapids SEO Infographic- A Spoonful of SEO Helps the Ranking Go Up
A Spoonful of SEO Helps The Ranking Go Up Infographic
We help alot of clients and one of the things that we get asked alot in Grand Rapids is how to make your page pop up sooner on Google and other search engines.
The answer in short is to add a little spoonful of SEO.
We created this helpful infographic just to illustrate the point that SEO is something you have to do a little bit of every day. Sites that are stagnant die but ones that constantly do a little bit of research and add valuable information do quite well.
SEO is also not something you can just buy and do one time. It requires constant work and monitoring.
If you need help on your SEO and are in the Real Estate industry give us a call and we can help.
Spring Home Improvement Projects And How To Cost Effectively Pay For Them
Home Improvement: Its not just a Tim Allen show anymore. In fact home improvement is a very real term that could help to transform your house into something new, fresh, and even more energy efficient. That being said humans often have the tendency to procrastinate and put things off. Home improvement projects however are worth doing, dont always have to be done by you, and most importantly can be done on almost any budget. Below are some recommendations for home improvement projects that can improve the value of your house on a budget. We will also explain some ways of financing these expenditures that will save you real dollars.
Spring Home Improvement Projects
1. Add an attached garage. It must conform to city standards but many houses built at certain times do not have a garage which is one of the most common things people desire in a house. Garages can be put up on a budget and they increase the value of your home. They also require little maintenance once built. Its like a house for your car/stuff.
2. Turn an unused room into another bathroom or add a bathroom on. This is a great option for growing families who dont want to move as well as for people who simply want to increase the value of their home. The two things that people first ask when shopping for homes are always “# bedrooms and baths”.
3. Backyard/frontyard: Many of our homes don’t look like they belong on the covers of Better Homes and Gardens but why cant they? A well landscaped back or front yard will solve the problem of people judging your book (house) by its cover. Adding or repairing a porch can add character to your home and make for a great summer project. Not only that but once you have a nice deck you can buy a barbecue and have cookouts. Everybody loves cookouts. There are many different ways to do porches and decks on a budget, as well as pricier options that will make your backyard the envy of your neighborhood.
4. Windows: Old windows not only look outdated but are often not energy efficient. By replacing or upgrading your windows you can save on your electricity/heating bills as well as improve the look of your home. Windows have gotten cheaper and cheaper over the years and can even be an easy DIY project if you are handy.
5. Kitchen: The way to any person’s heart is through the kitchen. Some of the most common things to do a kitchen in terms of home improvement projects include new cabinets, new furniture, new appliances, and even new counter tops. By updating your kitchen you are improving the future marketability of your home and also making your home more inviting.
Financing Spring Home Improvement Projects
One great way to finance home improvement projects is by using a 203k in combination with a home refinance. A 203k home loan can be added to a refiance towards certain upgrades, your monthly payment will shrink depending on the lower rate you are refinancing at is. Then for every $1000 you borrow towards elligible home improvements your monthly payment will only go up by around $6 a month depending on how many years you refinance your mortgage too.
The best part of using the 203k loan is that you can rest assured that a licensed contractor will complete the repairs in a good amount of time. As opposed to DIY projects that you may or may not get to a 203k is a great option to ensure the work is completed and not put yourself into debt at the same time.
Real Life Grand Rapids Mortgage Company Customer Experiences
Dave G.– Caledonia MI– Completed Home Loan with Treadstone Mortgage in Sept 2011
“I had been working with a realtor for around three months and although we thought we already had a good mortgage company in Grand Rapids it turns out they couldnt help us with the type of loan we needed. We are fairly young as far as home owners go and decided on a fixer upper in Caledonia, MI that had a low price but had some major problems. Our realtor recommended Kevin at Treadstone Mortgage, saying that he could help us use a loan called a 203k to do all of the necessary repairs and roll the cost of the repairs into the loan. My wife and I aren’t really mortgage experts so we just went along with it, and surprisingly there were no problems. A contractor came by and helped us complete the necessary repairs and then asked if there were any extra things we wanted to do. Although looking back we should have taken better advantage of this option at the time all that we added to the necessary repairs were new appliances. Kevin and Julie at Treadstone did a great job and i would recommend them to anyone in Grand Rapids looking for a mortgage company with low rates and the best customer service.”
Maureen–Grand Rapids, MI– Completed Refinance Loan with Treadstone Mortgage in March 2012
“I have lived in Grand Rapids for 10 years now after moving from Illinois, and when i first purchased my home i did my mortgage with a bank in Grand Rapids. I was actually having drinks with a friend one night when she mentioned that mortgage rates in Grand Rapids were at all time lows. I did some research online and found that Treadstone Funding had Grand Rapids mortgage rates as low as 3.5%. I called the next day and talked to Brendan who was able to help me refinance my home loan. He was extremely courteous and his team kept me informed throughout the whole process of collecting documents and getting papers signed. Overall I did spend some money however I was able to get a mortgage rate of 3.75% which was almost 2% lower than my previous loan rate.”
Nick F–East Grand Rapids, MI–Completed Home Loan with Treadstone Mortgage in June 2011.
“What with all of the bad news about mortgage companies in Grand Rapids with the bad economy, and housing crisis i wanted to work with a good Christian mortgage company. I was recommended to use Brendan at Treadstone Funding by a friend from Catholic Central (Go Cougars!). My loan went great and i felt the advice that Brendan gave me was advice that would help my future, not just his wallet. I ended up borrowing less than i was approved for and was still able to get a great home. He even explained the benefit of a 15year loan over a 30year, and i ended up getting a low interest rate on a 15year loan in East Grand Rapids. Brendan even showed up to closing, which didnt happen when i got my first loan.”
Hanna & Luke–Grand Rapids, MI–Completed Second Mortgage with Treadstone Mortgage in November 2011.
“We were having lunch at Hopcat in Grand Rapids while we were house hunting one afternoon and happened to meet Brian, a loan officer with Treadstone Mortgage. It was kind of a coincidence but he overheard us talking about house hunting and let us know that he could help us. He set us up with a great realtor who knew the neighborhoods we were looking at well. Brian was great throughout the whole process and his processer Neil was funny and always friendly. We ended up getting a beautiful 3 bedroom 2 bath home in Grand Rapids for less than $100,000 and the best part is that we can rent out 2 of the rooms to cover the whole cost of our mortgage. Treadstone is in my opinion the best mortgage company in Grand Rapids.”
Bill–Allendale, MI–Completed Home Loan with Treadstone Mortgage in January 2012.
“I was panning to wait until spring to start house hunting but a friend told me that January was a good time to buy because everyone buys in the spring and there is less competition. I did a google search for “mortgage grand rapids” and found Carolyn from Treadstone Mortgage. She helped me get a home loan on a beautiful lake front home on Lake Michigan Drive. She and her team closed the loan in 3 weeks which my realtor was pretty impressed with. She even went a step further and helped me figure out other services to use related to the home buying process. I highly recommend Carolyn Kruithoff for anyone looking for a mortgage broker in Grand Rapids.”
Why The Hunger Games Trilogy is Real Life in the Real Estate Industry
This blog will make more sense if you have read the Hunger Games trilogy that has been sweeping the world in recent months. For those of you who aren’t familiar go read them now (books > movie).
The basic synopsis of the books is that a character named Katniss is awesome and risks her life to save her little sister from having to compete in a state run “games” think Roman Coliseum meets The Running Man. Two children are selected from every “district” to compete in the ultra-violent games and only one returns and or lives. Once inside the “hunger games” the competitors quickly get the feeling that they arent in control– the whole series is based on inspiration and some of the people taking control and making their own destiny and in effect shaping the destiny for the whole country.
So why is the Hunger Games real life in the real estate industry? Because its cut throat? No, that may be true in some areas but the real reason the Hunger Games is like the real estate industry is because in real estate people have to make their own destiny and (hopefully in a non-violent way) fight for it.
Anyone who worked in real estate in the past 5 years may have even felt like they were in The Hunger Games, now we as an industry are emerging leaner, tougher, and ready for anything. Those people who entered real estate because they thought it was easy have washed out and now the loan officers, realtors, title agencies, and house hunters who are left are the crème de la crème.
Not only that but every real estate transaction is filled with surprises just as is every minute of competition in the Hunger Games. Things happen, those real estate professionals or “tributes” who react best will do tremendously well while the others who do nothing or not enough will be forgotten.
Not only is real estate like the Hunger Games Trilogy for real estate agents and loan officers, new home buyers are playing in fierce competition as well. Where there used to be great homes for great prices everywhere, the inventory is shrinking and good deals are harder to find. When the best deals arise often times buyers must fight, negotiate, and use their “mentors” ie their realtors to help them navigate the waters.
One final reason that the Hunger Games is like the real estate industry is that although team work may be considered taboo it is still a great way to make it out alive. Forming relationships with like minded people who drive you to succeed is huge! Its always easier to do things with a companion, and although we are lucky enough to no have to worry about knives being thrown and mutt like creatures attacking us if we have each other’s backs we can catch mistakes before they turn bad.
The Hunger Games Trailer is Below for anyone who wants a preview of the film (not as good as the book but still quite entertaining)
Have You Noticed This? Real Sales Vs Fake Sales: Spotting True Deals
Fake Sales. Fake Discounts? Don’t Bother just offer great customer service. Do you ever see a coupon or a sale advertised and wonder how on earth someone could market something that is in no way a sale/discount in terms of actual value/savings?
Often times you might be at the mall and see a sign that says “Storewide Blow Out Sale”, you get all excited and then you walk inside to realize that the huge sale is that all mens pants are buy one get one half off. This would be a sale if the original cost of the pants wasn’t a giant rip off. Often times the clearance in a store is priced much better than the advertised sales in the front.
Another type of “fake sale” is the classic everything in the store is 70% off and must go! Many furniture stores do this, the problem is that they often raise the prices the night before to make up for the discount, meaning that it is technically a sale but nobody is saving money. This type of gimmick is usually only done by bigger chain stores who have less personal relationships with their customers. Often times they do it simply because it works.
Another rule of thumb is that if it sounds to good to be true it probably is. Deals where you have to spend a certain amount of money to save are also no good unless you have 36 kids and must buy them all overpriced things.
For mortgages and real estate transactions it is much harder to offer and advertise sales. If you see a deal on a mortgage that amounts to you saving thousands of dollars more at one place than another it might be a deceptive or hard to qualify for sale because for the most part mortgage rates are standard. Fake sales are no fun for anybody and many good local businesses would be better suited to rely on the type of give away that we utilize: great customer service all the time, no exclusions.
Michigan Mega Millions– Make It A Different Way: Investment Properties
If you are one of the millions of people who play the Mega Millions in Michigan every day, week, month then there is a good chance you like the idea of collecting fast, easy money. There are more efficient ways to make it big than simply playing the mega millions numbers. One great way that is often overlooked because people believe they can’t do it is rental properties. This is a strategy that we have helped many people with in the Grand Rapids area to much success. Here is how it works.
Lets say that there is a short sale home in a busy downtown area selling for $19,0000 (i have seen much lower also). A house that cheap must have something wrong with it so you invest $25,000 into it to make it livable, safe, and nice. Your total investment is now $44,000 but you are smart and have a downpayment of $5,000 to use towards the house so the total amount you wish to borrow is $39,000. Even with the cost of the loan your monthly payment on the property will be about $394 per month on a ten year loan assuming a 4% interest rate. Now here is the beautiful part, that house has 3 bedrooms in it. Average rent prices in and around just about any area are a minimum of $200 per month per person and an average rental property in Grand Rapids MI with three bedrooms is earning a total monthly rent amount of at least $600 but more often $1200.
Even after the rental income pays for your mortgage on the property for the month you will have around $700 left over to either use as dispensable income or to pay off your loan faster. An additional benefit to retooling old properties is that it promotes the neighborhood and increases property values overall. If you are in the Grand Rapids area a rental property is a great idea because with the medial mile here all prices are going up.
If you are interested about talking with a specialist about the possibility of a rental property call or email us today. We have helped hundreds of people with rental properties in and around the Grand Rapids, MI area, and its the real key to Michigan Mega Millions.
Resources
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