Investors are buying

I was having a conversation with a fellow Handball player yesterday who was visiting for a game. He invests in real estate, and has for a number of years.

What he was telling me was that he couldn’t buy houses fast enough at this time. He’ s been going in with cash, and buying rental properties. His argument was that you could not replace the houses that he is buying for the cost that he gets them. That was what he considered a good investment. Buying something under value while everyone is scared. Don’t I wish this guy lived closer to me? You bet.

Can one be building long term wealth right now? You bet. This is the time that those who have money, get more money. However, the unfortunate downside is those that don’t have the money..things aren’t getting better for them.

Even if you can’t pay all cash for a place, but have some money that you might want to reinvest. Either sitting in a savings account or bond, or perhaps in the stock market.

If I could help you find a place that had a 10% annual return…and you had to borrow at 6% to make it work. You are still making 4% on borrowed money, while some renter is paying off the principle balance. If you can put something like that on a 15 year note, a $30,000 investment on a $150,000 home would be paid off in 15 years. So even with no appreciation, one could own free and clear the home…then all rent coming in would be strictly income. Do that 10 times, with a rent of $1000 a month per house…in 15 years, that could be $10,000 of income a month.

I could retire on that.

Whatever your financial situation is, if you would like to sit and discuss some real estate related financial goals, I would be happy to share some of my knowledge with you.

And as always, if looking for Ashland Oregon Real Estate, don’t forget to visit my website.

How a calculator can help you buy a home.

Top Ten Rules to Follow When Buying a Home Part 4

4. Determine how large your mortgage can be. Explore different loan options to determine
what is best for you.

This is a good exercise for anyone looking to buy, or even hoping to buy in the future. Find a mortgage calculator online and determine in reverse how large of a mortgage you can afford.

Business man accountant calculating invoices in office

Business man accountant calculating invoices in office

On my website there are some really cool online calculators. Click on the menu button that says Mortgage Information. There are 23 different loan calculators there. But for buyers, the important one is probably the Affordability Calculator. It will ask for how much down payment you have, what your income is, and what your debt is. Don’t worry about it sending information to me…I don’t see it. It will then let you know about what the payment the bank thinks you can afford is, and what loan amount and purchase price that would qualify you for.

Give it a try….at

Other great calculators are available there….such as how much time you could cut off of your mortgage by paying more each month, what your tax savings is buy owning a home, a rent vs. buying cost calculator…and more.

If you would like me to do it for you, give me a call.

Ten Rules to Follow When Buying A Home

1. Make a commitment. Commit yourself to your new home for at least a couple of years
before making your next move.
2. Money matters. If you’re considering a mortgage, shore up your credit and get a copy of
your credit report.
3. Get pre-approved. Save yourself the time and grief of looking at houses you can’t afford.
4. Determine how large your mortgage can be. Explore different loan options to determine
what is best for you.
5. Decide what (and where) you want to buy. Prioritize your needs (i.e., location, schools,
6. Consider your re-sale value. Even if you don’t have school-aged kids, a strong school
district is a good thing.
7. Do your homework. Bid based on sales trends of similar homes in the neighborhood.
8. Calculate the hidden costs. Property taxes, insurance, maintenance and association
fees can impact your wallet over time.
9. Don’t be house poor. Double and triple check to be sure you haven’t maxed yourself out
on the cost of your home and left nothing for maintenance, etc.
10. Get help. Hire a REALTOR® to get the most for your money. It pays to have
someone looking out for your interests. (note: when it says Hire a Realtor, make sure you sign a buyers service contract with the Realtor that spells out the Realtor’s responsibilities to you.)