Sell your investment property to a first-time home buyer and use Community First Financials' Mortgage Assistance for First-Time Home Buyers.   With our help you can offer your potential customers a 5% down payment.  Community First Financial offers this non-repayable grant through our partnership with Maricopa County and the City of Phoenix.

The mortgage assistance program is designed to help homebuyers purchase a newly-constructed or existing home by providing a below market mortgage loan interest rate with a 5.00% grant for down payment and closing cost assistance.  This program is targeted to low and moderate income, and loans will be made on a first come first-serve basis.    We have streamlined this program to fund within 45 days.  Typically transaction will take just 30 days. 

Eligible Buyers:

• First-time buyers purchasing a home in Maricopa County
• Primary residence
• Purchase only
• Standard loan guideline
• Household income restrictions

Eligible Homes:

• Single Family detached house
• Condominiums
• Townhomes
• Duplex older than five years

Household Income Limits:

Non-Targeted and Targeted Areas  

1 to 2 persons      $64,524-$74,203

3 or more              $74,203-$77,542  

1 Family Purchase Price

• Non-Targeted      $311,625
• Targeted Areas   $380,875

There are specific Targeted Areas in which buyers do not have to be first-time homebuyers and are subject to higher income and purchase price limits.  Please contact Troy Schuricht for area map.

For more information and details please contact:

Community First Financial talks to hundreds of investors every month and there are some thoughts I would like to share with you on our experiences with investors, particularly first time investors.

One of the top questions I hear from investors is, What would you do?

 If I could start my investing life all over again I would buy a FOUR PLEX as my first home.  And when I say first home I mean first home.  Most people buy their single family house, live in it as their primary house, then look to buy their first investment property.  For those that are flexible and motivated I suggest you buy a 4 plex as your first primary home and investment property.

Here is why owner occupied 4 plex makes sense:

1. Qualifying for a first time home buyers loan on a primary residence easier.
2. You need less money down.
3. Rental income helps qualify.
4. You now have a primary home and an investment in one transaction.
5. Potential cash-flow or you could pay for your primary unit with the other three units cash-flow.
6. When you decide to move you have a 4th unit that becomes a rental.
7. On site property manager.

Highlights of the loans available on a 4 plex (primary residence):

• Up to 95% financing
• Loan amounts to $801,950
• Only 3% of borrower's own funds/ 2% from flexible sources
• Only 660 credit score
• 2 month asset reserve requirement

This is also a great idea for individuals that have kids that are in need of an idea on how to get started in real estate.

Troy Schuricht

COMMUNITY FIRST FINANCIAL, LLC

7575 E Redfield Rd   Suite 235

Scottsdale, AZ  85260

480-305-8905 - office

480-393-8801 - fax

http://www.communityfirstfinancial.com/

http://www.yourlendertroy.blogspot.com/

http://activerain.com/tschuricht

Community First Financial talks to hundreds of investors every month and there are some thoughts I would like to share with you on our experiences with investors, particularly first time investors.

The question I hear the most for our investors is, How do I to get ready to start investing?

The answer for me is two parts.

1. Are you ready to invest?
2. Are you patient?

The key to investing is to be prepared financially, physically and emotionally.

• Financially - Make sure you have your credit in order and you have an understanding of the financial commitment in order to invest. Understand cash flow, entry strategies and exit strategies for real estate. Have your financial advisor's in place, loan officer, CPA and real estate attorney.
• Physically - Can you move into your investment at any time?  Do you have a property manager?  Will there be any work that needs to be done to your property?  If you are not ready to get physically invovled with your investment do you have the people in place to help? Have the individuals like property mangers, general contractors, and handyman's ready to go.
• Emotionally - Does finding a renter stress you out?  Do you trust a good deal when you find one?  Are you missing all the great deals because you think about it one day too long?  The very best real estate deal do not hang around for long.  They sell and move quickly because other investors that are better prepared or willing to take more risk move quickly.  Investors do not need to be cold as ice to make a deal, having help and advise is valueable.  Talk to other investors, Realtors, and loan officers use their experience if your unsure.  From a mental stand point investing is not easy.  If it was there would be no room for you and me.

Remember be ready financially, physically and emotionally you have to be patient. 

Troy Schuricht

COMMUNITY FIRST FINANCIAL, LLC

7575 E Redfield Rd   Suite 235

Scottsdale, AZ  85260

480-305-8905 - office

480-393-8801 - fax

http://www.communityfirstfinancial.com/

http://www.yourlendertroy.blogspot.com/

http://activerain.com/tschuricht

I would like to shed some light on refinancing hard money loans.  Hard money loans can have an interest rate ranging from 8% to 22%, so refinancing into a 7% loan can save you interest expense.  Most hard money refinances I see come from the purchases of foreclosure.  Since the future of forclosure investing is strong in most areas it is good to have an exit strategies from a hard money loan.

Things to think about with a hard money loan:

• What is your interest rate?
• Are there any balloon payments due? When?
• Do you have an extension fee to extend the length of your loan period?
• Are you selling or renting your foreclosure when any rehab is done?

Things to think about when refinancing from hard money loan to conventianal loan:

• What is your long term holding plan?
• Do you need to get cash out?
• What are the costs/break even of the new loan?
• Is your property listed on MLS?
• What is the condition of the property?

Let me share a few of my experiences with refinancing hard money to conventional:

I've had a number of properties that where in poor shape and could not qualify for conventional financing, unless we utilized a rehab loan to fix the place up.

I've had a few properties on MLS which is an obstacle to 90% of the lenders out there, but can still be done.  Your lender selection is just limited.

I've had people in really good hard money situations and advised them to keep their loan.

I've refinanced hard money loans at 15% and refinanced them into conventional loan rate of 6.875%

Keep in mind every single refinance is situational, so do your diligence on your property, the hard money loan terms and exit strategy.

Welcome to our Investor Team,

http://www.cffinvestors.com/

Troy Schuricht

480-305-8905

troy@cffinfo.com 

Your current insurance company probably will cancel your existing policy if your property becomes vacant. You will need to review your insurance policy to see if occupancy is a condition for coverage. Call your trusted Insurance Advisor and take action.

The big question is? What are you planning to do with the vacated property? Are you going to rent it? You'll need to acquire an insurance policy designed for rental units.  Are you going to try to keep selling it?  In most cases, you may need to find a new insurance company. Most "standard" insurance companies won't insure a vacant dwelling.

For a vacant property policy the main coverage you want is:

•·         Liability-Covers the owner in the case of bodily injury

•·         Building-Covers the structure

Some additional coverage that may have additional benefits to you is:

•·         Vandalism-Covers the property in case of vandalism

•·         Theft-Covers certain contents from theft

Coverage varies by carrier and by state so; don't assume that you are getting the top tier coverage.  Typically, these policies can be written on a short term 3-6 month policy or normal 12 month policy period

Welcome to our Investor Team,

www.cffinvestorloans.com

 Cashflow is a very important part of the real estate investment world. There are a number ways to increase you cashflow on an investment "rental" property.  Today I want to talk about the INTEREST RATE on your investment property and ways to reduce it to lower your payment and increase your cashflow.

Here are a few ways to lower your interest rate:

•  Shop at least 3 lenders - Make sure you are comparing apples to apples when you do this.  Factor the same number of origination and discount and make sure the term is the exact same. The term is a 30 year fixed or 5/1 ARM interest only portion of your loan.
• Buy-down your rate- You should only consider this if you plan to hold the property long term. These numbers are ball park, but will help illustrate: If you buy a $200,000 with 20% down at 7% your principle and interest payment would be $1064.  If you buy-down your interest rate 2 points this would reduce your interest rate to 6.5% and your payment would be $1011.  This would help you cashflow by $53 dollars a month.  Now the tricky part, calculating you break even on your buy-down. 2% of $160,000 equals $3200.  $3200 divided by $50 savings equals 64 months to breakeven.  So what is the total savings if you held this property for 15 years?  15 x 12 months= 180 months    180x$50=$9000.00       $9000-3200=$5,800.  Like I said this is a long term hold and over 15 years you would save $5800 interest payments.  Keep in mind buy-downs are tax deductible.
• Use of prepayment penalties- There are a number of loans that if you agree to take a prepayment penalty you are offered a lower rate.  Generally the largest prepay is 3 years, this should only be considered if you are going to hold this home for that period.  There is a severe penalty if you pay it off early, either 6 months interest or 3%. This can vary depending on the lender and type of loan you are looking for. Those individuals that are stated income or over $417,000 in loan amount will be the greatest effected, sometimes up to a full 1% savings on their interest rate.
• Down payment- This is the one that has a double whammy effect.  The more money you put down the lower the balance and the lower the interest rate.  Once again, those individuals that can not document income this is the best way to cashflow properties via interest rate reductions.

Welcome to our Investor Team,

www.cffinvestorloans.com

Protecting your assets correctly as a Landlord

You have decided to be a landlord.  Congratulations! Here are some tips and recommendations on properly covering your investment.

Liability to Protect the Landlord

The landlord is responsible for the safety of the property the tenants are living in. If a tenant should harm themselves due to something dangerous in the property they can make a claim against you for damages. For example, a tenant could electrocute themselves on a faulty light switch. As a result, the tenant may be hurt badly.  The Landlord Liability coverage will pay for any damages to the tenant as well as legal costs.

 Protectng you Building

The building itself should be insured against most risks such as fire or wind damage for the cost or repair or rebuilding.  You should insure the property for the replacement cost of the building less any land costs. 

Contents

If your property is rented either furnished or unfurnished it is important to determine how much it would cost you to replace your belongings including fixed furnishings, such as curtains and carpets.

 Rental Income

Landlords Insurance should provide optional coverage for the loss of rent following accidental damage or accidental loss to your buildings.

Protection from Damages caused by Tenants

In the event your tenant defaults on rent or leaves the building before the end of the rental period, or is legally evicted, a policy should provide for lost rent until the property re-rented. In addition, coverage should be available for theft by tenants and legal costs you incur in taking action against the tenants.

Welcome to our Investor Team.

www.cffinvestorloans.com