Groups are smaller communities within the larger ActiveRain. Join groups created by others. or start your own and
get others to join
This is the place to view the past and present contests put on by ActiveRain and its members. Everyone can join the
group and help encourage each other. Current contest will be highlighted posts so it's easy for you all to see. Let it
Curious as to what others in your profession think about a certain product or tool?
AR's community takes the time to leave honest and transparent reviews of their experiences
so you can be a bit wiser about your purchase.
Broken down by categories and subcategories for easy finds
Get an unfiltered look at what real users are saying
Leave a review yourself for others to benefit from
Add new products as you use them and gain points for doing so
ActiveRain University (ARU) provides free on-line training. We coach, consult and support real estate professionals about real estate trends, technology and social media.
ARU Calendar provides class types and registration links
Watch short tutorials on updating your photo, inserting a hyperlink and much more
Sign up for the Daily Drop so you don't miss out on AR's daily happenings
Find answers to most FAQ's
Whatever it is you're into and wherever you are, AR surely has a group for you to join.
Brand, off the wall, specific subject matters…whatever it is you're looking for.
Each time you write a post you can syndicate your post to 5 groups.
And if by chance you don't find what you're looking for, start a new group today!
Get your content in front of more eyes
Search by location or type
Feel free to start your own group
Find some that are close to home and close to heart
Each month AR runs numerous contests as a way for our members to engage in activities
that will boost their business and increase their visibility in the community and beyond.
Earn points by partaking in these contest and climb the leaderboard
Do what's good for you and your business by participating
If you have an idea for a contest, just let us know
Stay motivated and on track with new contests popping up each month
Ask a Real Estate Question
Here's another avenue for you to build relationships with others. Share your expertise with someone searching for answers.
Play the teacher role and help someone out today
Your Homepage will alert you of new questions in your state
A wonderful way to open a door to a possible new client
Ask a question yourself to get help
These state pages or hyper-local pages provide content directly related to a specific geographical location.
State, County, City and Neighborhood pages make it easy for consumers to find what they're looking for.
Post your listings, school information, local events, market reports and more
Consumers peruse these pages for information
Farm your niche market and cover all the happenings in your neighborhood
On Friday July 13th, the final amendment was finalized for the HUD Small Rental Assistance Program in Hancock and Harrison County, Mississippi. HUD's intentions for this program was to entice more investors to build new rental housing and provide rentals for those who make less than 80% of the median income. HUD wants to subsidize rent and make it truly affordable for locals needing affordable rental properties. Let me tell you a little about the unique situation. People, this is not Section 8. After the hurricane, thousands were left homeless and carless. Amongst those thousands, most of them had to find alternative housing and transportation. With the incurred expenses of that, they had to let go their home loans and car loans on the ones washed away. This meant a default on their loan or foreclosure/repo (if that's what you want to call it). Many who were left without jobs have in the past year re-gained that job or found another.
In addition to those unfortunate families/individuals, there is a major influx of jobs becoming available. One of the biggest demand for employees now is the hospital in Hancock County. They are begging nurses and doctors to work, however, the only holdup is NO HOUSING. Out of state potential employees in the medical field cannot even find a place to rent in the papers. There simply just isn't enough. Aside from the doctors and registered nurses, most of the first year employees make 80% or less of the median income of $42,000.
The HUD small rental assistance program is once again, an incentive for an investor to build rental property with a subsidized rent. HUD is offering a 5 year forgivable loan in the amount of $30,000 for a single family home with a 90 day completion bonus of an additional $10,000 typically only good if you are building modular, which is what I am doing. What this means is that for a single family home(s) purchased, your rent is subsidized at 80% of the market rent on 51% of your investment properties in the area. An incentive on top of the incentive is that for 49% of your homes, your rent is going to be paid at 120% of the market rent. The market rent for a 3 bedroom house is $1057 per month. You can see the obvious incentive by building numerous.
Let's say you own 3 homes. Two of those homes are going to be subsidized at 80% of $1057. You will get a rent check from the tenant each month of $846 per month. For the 3rd home, you will receive 120% of the market rent of $1057. You will be paid monthly from the tenant in the amount of the 80% rent of $846, however on top of that, the state is going to send you an additional 40%, increasing your total monthly rent to $1250 per month on that house.
The way the forgivable loan is issued is you get 50% after permits are issued from your builder and 50% at tenant occupancy. In my opinion this is a fantastic dispersement schedule one that you can leverage much greater your current and potential equity in the house.
What this does is creates truly affordable homes in the selected counties. The state of Mississippi has allocated over $220 Million for this program and will likely run throughout this and next year.
Duplexes are slightly different. Because a duplex is 2 housing units, the forgivable loan increases nearly 70% total. It is very hard to complete a duplex in under 90 days so chances are you will not get the completion bonus. But for the very few available duplex builders out there, this is a great opportunity in addition to single family homes. Because this is brand new and I had more attention on the single family homes, please keep updated on my next entry for the complete details on how duplex situations work.
Here are the criterias. You must hold the rental as a landlord for 5 years for the $30,000 to be 100% forgivable. This does not include the bonus completion award of $10,000. That is forgivable from the start. If you sell at the 3rd year, you will be able to keep 33% of the loan. After the 4th year if you decide to sell you will be able to keep 66% of the loan. After the 5th year, it is 100% forgivable and as reported is not income, but a grant. Therefore the funds are TAX FREE.
Here is an opinion on what to do with the funds: CALL SUNNY MORTGAGE GROUP- Get an aggressive construction to permanent loan for a preconstruction home/duplex. Your negative cash flow will be anywhere from $200-$400 per month if you consider the 80% subsidized rent. This is totally offset by the forgivable loan. Let's say (counting the completion bonus) you have $40,000 up front from the state. If your negative cash flow per month is on the higher end of $400 per month, your negative cash flow for the first year on the home you are at 80% with is approximately $4800. Now instead of $40,000 you have just over $35,000 left. After the first year, you could refinance and pay down the principal of the house with what you have left. Now you have just created yourself a cash cow by making money on a $100,000 loan or so when the house is valued by anywhere from $50,000 and higher than your new payoff.
This is not too complicated but one that still requires further due diligence. Applications for this are not going to be available until at least July 16, 2007. Investors, start your engines. Between this new HUD incentive, the go-zone write off, and the expected appreciation, you may never find yourself in another position such as this.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.