Think you want to save some money on buying Hollywood real estate by finding a foreclosure or short sale? There are a few things you should be aware of about this type of transaction. The number of foreclosures and short sales on the market is lower now than in the last few years, which means more competition. Whether it’s the homeowner or the bank, sellers are going to look for the best deal. So, if you want to try this route, educate yourself on a few key points.

• Work with an experienced agent. Make sure your agent knows how to navigate a distressed [city] real estate purchase.
• Be patient. Finding a home and closing the transaction could take several months.
• Check the market value. Just because it’s a short sale, doesn’t guarantee you’re getting a deal.
• Get a home inspection. A great price could mean the house might have serious issues, so have a licensed inspector check out the distressed property. Include a contingency clause in the offer in case the inspection reveals major defects.
• Get personal. If you’re in a bidding war, writing a personal letter to the seller about why you love this home could help tip the scales in your favor.
• Research liens and mortgages. Find out who is the primary lienholder and whether any other liens are on the title.
• Verify your financing. You may have less than a month to close once the contract is approved, so it’s critical that your lender has your financing in order.
• Don’t put all your eggs in one basket.  You may love the house you have made an offer on, but realize that until you sign the papers, it’s not a done deal. Keep looking so that you have a back-up in case something goes wrong.

In order to avoid disappointment, buyers need to be educated about the in-and-outs of buying distressed Hollywood real estate. Do your research and be prepared to be patient. The most important part of finding and buying what you want is having a great agent behind you. If you would like more information on purchasing distressed properties, please call me at 954-663-2539 or email me at carrascoalex@mac.com.

”Distressed property” is a blanket term for homes in foreclosure, short sale or that are REO (Real Estate Owned). These properties can typically be acquired at 15-35 percent below market value, which depends on the condition of the home. Below are definitions of different types of distressed Hollywood real estate, so that you can be familiar with the terms.

• Foreclosure: When a homeowner has defaulted on their mortgage for a specified period of time, the bank takes possession of the Hollywood real estate.
• Short Sale: A homeowner facing foreclosure may request a short sale from their lender to sell the property for less than what is owed.
• REO: Real Estate Owned properties have gone through foreclosure and are held by the bank. This increases the possibility of purchasing these homes at a discount because maintaining an REO is costly for a lender.

All three scenarios offer opportunities for substantial savings, yet all include stipulations with regard to the contract and terms of purchase. When you buy this type of property, you are dealing with a financial institution instead of a private seller, so it may take more time to go to closing. There is usually little room for negotiation on the asking price or other contract terms.

According to the National Association of REALTORS, foreclosures and short sales accounted for about 24 percent of housing sales as of September 2012. Some projections for 2013 indicate that the supply of both distressed and non-distressed homes will be limited going into 2013. Others call for an increase in foreclosures that were begun in 2012 becoming available this year.

If you are willing to take the chance and be patient, a distressed property could pay off. Most buyers see an increase in the value of their Hollywood real estate within a short time of purchase. It is strongly advised that buyers work with an experienced property expert when interested in distressed properties because of the additional paperwork and requirements to complete the transaction.

If you have any questions or concerns about buying a distressed property, please call me at 954-663-2539 or email me at carrascoalex@mac.com for more information.

A short sale can be a great way to find an affordable deal on a property in today’s market. However, just because a Hollywood home is being sold as a short sale, it doesn’t mean it is necessarily the best purchase. Here are some important things you should know about short sales before purchasing one.

Don’t get emotional

Buying a Hollywood home can be an emotional decision. It’s easy to fall in love with a property without really considering whether it’s a practical choice. When you are making decisions, be sure you’re thinking objectively and realistically.

Hire an experienced real estate agent

Although a short sale might seem like a simple, sweet deal, it’s worth getting a real estate agent involved to take a close look at the details for you. They will be able to find out the story behind the property and determine whether it is actually going into foreclosure or if the short sale is just a trick to help it sell fast. Choose a real estate agent who has experience with short sales.

Be wary of “as is” property

Often you will see short sale property with “as is” in the description. This often means that the property is in need of significant repairs. Unless you are dedicated to working hard on a fixer-upper, you will want to avoid taking on a property that could turn into a major money pit. It is a huge red flag if the seller will not let you have the property inspected before you buy it.

Never give the seller cash

If the seller starts asking you to give them cash up front, they are committing fraud. This is a common scam, so don’t fall victim to requests for payments in cash. In a short sale, the homeowner should come out of the deal with no money.

These are just a few things you should know before purchasing a short sale property. For more help and suggestions for buying a Hollywood home, call me at 954-663-2539 or email me at carrascoalex@mac.com.

If you are planning to invest in Hollywood real estate, it’s always wise to make as much of a down payment as you can. The more money you can deliver up front, the smaller your mortgage will be. With a smaller mortgage, you will pay less interest over the years, which will save you money in the long run.

The advice from most financial experts is that you should have enough money for a 20 percent down payment before buying a home. This might seem like an overwhelming task, so here are some tips to effectively save money for a down payment on your Hollywood real estate.

Eliminate Debt

Get rid of any debt you might have. If you are wasting your money on credit card interest each month, pay off these bills before you start saving. This will free up some cash in your monthly budget, which you can then start putting into a savings account.

Consider Another Source of Income

Take on a second job for a while, perhaps on weekends or a few evenings during the week. Any income from your second job can go straight toward your down payment.

Make a Plan and Stick to It

Create a budget to outline where all of your money goes on a monthly basis. You might be surprised to find out how much you have been spending on shopping or entertainment. Look at areas of your life where you can spend less so that you can put that money into your savings instead.

Purge Your Belongings

Sell everything you don’t need. Do you really need that second car? What about all the junk in your garage that you haven’t used in years? Go through your possessions and be brutally honest with yourself as to whether you will ever actually use it again. Then you can sell your unwanted goods online or at a garage sale, and put the money toward your down payment.

Putting away money for a down payment to purchase Hollywood real estate takes patience and dedication, but it will save you thousands of dollars in interest over the years. If you’re thinking about buying a home, please call me at 954-663-2539 or email me at carrascoalex@mac.com for more information.

An open house gives you a great opportunity to look closely at Hollywood real estate you might be interested in buying. It also affords you the chance to chat with the REALTOR® so you can bring up any issues or hesitations you have with the home. Knowing what to ask can be difficult, so below are examples of questions to ask at the next open house you attend.

Why has the seller decided to sell now?

If you ask the REALTOR® why the seller is moving, you could learn valuable information to help determine your bid. Knowing whether the owners are about to go into foreclosure or they’ve retired south and completely paid off the home can help you decide how urgently they need to sell their Hollywood real estate.

Have you had any other offers?

Don’t forget that you are not only negotiating with the seller for a price, you are also competing with other potential buyers. It really helps to know what you are up against. Also, you might want to try and see if you can get the REALTOR® to divulge the amount of any other offers.

Does the property have special ownership costs?

Ask the REALTOR® about the other costs associated with owning the property, such as Home Owners Association fees within a condo complex or a gated community. It’s important to know about these extra expenses in advance so you can make an informed offer.

What furniture and appliances are being sold with the house?

Most of the time, a seller will include their major appliances such as the refrigerator, stove and dishwasher with the home, but this isn’t always the case. If you don’t already have these items, it’s important to know whether they are included in the purchase price.

The open house is a great opportunity to learn more about a home before making the decision to buy it, so be sure you ask the right questions. To find out more about attending Hollywood real estate open houses, contact me at 954-663-2539 or email me at carrascoalex@mac.com.

When you make an investment in Hollywood real estate, it’s important to consider your options for turning a profit. It might be best to rent out the property to cover your mortgage and build equity. Or, you could fix up the home and flip it so that you can sell it quickly for a larger amount than you invested. Both are appealing options, so here are some important factors to consider before making your decision.

When to Flip

If you are thinking about flipping a house, you will need to have enough capital to invest in the property so you can make the required improvements and repairs. Flipping a house can be tricky, so you also will want to have enough experience to know what you are doing. Do your research so you’ll know what renovations will have the most impact on the value of your Hollywood real estate.

You will also need to know if the market in the area will support your new price point. Buying and flipping a house in a depressed housing market will not be easy. You will want to do the flip in a very buyer-friendly community for your best chances of a high return.

When to Rent

Flipping a house gives you quick cash, but renting it out instead gives you a monthly cash flow and a larger long-term profit as the property appreciates over time. If you don’t mind being a landlord and you have the time to screen for reliable renters, then renting out the property might be a better option for you.

This option also means that you will have the home later on in case you want to live in it. Of course, don’t forget to factor in additional upkeep costs, such as repairs, utilities and property taxes.

Whether you rent out or flip your investment property will depend on whether you are interested in a long-term investment or a short-term project. If you’re looking to purchase Hollywood real estate, please call me at 954-663-2539 or email me at carrascoalex@mac.com for more information.

It’s a great time to buy because there are still quite a few Hollywood homes for sale now and interest rates have continued to stay low. Whether it’s your first time purchasing real estate or you’re a seasoned professional, here are a few tips to make shopping for a new house more pleasurable.

1. Get Help

Searching through all of the available real estate can be mind-boggling. Find a professional real estate agent to wade through the Hollywood homes for sale and find one that meet your family and financial needs.

2. Start Looking Now

Finding the perfect house can take months, especially if you’re looking in a competitive market. If you’re looking at getting a good deal on a foreclosure or short sale, then these transactions can take even longer because you’re waiting on the bank to make the final call. Try to be patient. The more thorough you are in your search, the happier you’ll be in the long term.

3. Don’t Settle for the First Place You See

Searching for a house can be extremely emotional. If you think you’ve found the one, then take a step back, consult your real estate agent and go over your housing checklist one last time before placing a bid.

4. Weigh the Pros and Cons

Almost any property will need a few improvements. Even newly constructed houses usually need improvements like landscaping. Sellers are savvier now about how to make cosmetic changes to catch a buyer’s eye, so look carefully. There will still be things you want to change. Weigh the difference between the cost of those repairs and the sale price. If you really want a house even though it’s going to take a lot of work, place your bid accordingly.

5. Make Sure Your Financing is in Order

Having financing done in advance makes your job of buying Hollywood homes for sale much easier because you’ll know how much you can afford. Save up a down payment and then talk with your bank and get pre-approved for a loan. Your loan officer can also help you determine what your monthly payments will be based on how much money you borrow.

If you’re looking for a professional real estate agent to help you find your perfect home, find out how I can help.

In today’s environmentally conscious world, more homeowners are looking for property with green characteristics. Not only is an eco-friendly house better for the environment, but it also cuts down on the cost of utility bills. If you’re about to purchase a Hollywood home and want to go green, see below for a few eco-friendly features you should include on your checklist.

Proximity to public transportation or work

Taking a bus or a bike to work instead of driving can really reduce your carbon footprint, so definitely take into consideration a house’s location. Insurance companies might even provide cheaper rates to owners who live close to public transportation.

Quality of insulation

Look for a house that is insulated well at the right rating for the climate. The better the house is insulated, the more heat it will retain and the happier you’ll be with the utility bills.

Water heating system

When looking for a green property, a tank-less water heater is an efficient alternative. It will produce hot water on demand instead of keeping a storage tank of water warm when it’s not needed.

Green appliances

If the house you are buying comes with appliances, check to see whether they are newer energy-saving models. These efficient appliances can save you an impressive amount on your utility bills  and modern plumbing fixtures can cut down on the amount of water you waste.

Building codes

If you are buying a brand new Hollywood home, ask the builder about the building codes with which they comply. If the building is advertised as being built to green building standards, you should do some research and find out exactly what that includes. The definition of green real estate can vary from builder to builder.

These are just a few things to look for when buying eco-friendly real estate. If you’d like more suggestions for finding a green Hollywood home, please call me at 954-663-2539 or email me at carrascoalex@mac.com for more information.

There are many reasons why a mortgage loan for your Hollywood real estate could be declined. It doesn’t have to be the end of your real estate dreams. Here are a few things to consider if you’ve been turned down for a mortgage:

Loan-to-Value Ratio

The loan-to-value ratio (LTV) is the percentage of the appraised value of the Hollywood real estate that you are trying to finance. For example, if you are trying to finance a home that costs $100,000, and want to borrow $75,000, your LTV is 75%.

Lenders don’t like a high LTV. The higher the ratio, the harder it is to qualify for a mortgage. To reduce the percentage, you can save up a bigger down payment. Some lenders may approve the loan if you buy mortgage insurance, which protects the lender in the case of default, but makes your mortgage payment higher.

Credit-to-Debt Ratio

Lenders will be less likely to approve your mortgage loan if you have a high credit-to-debt ratio. The ratio is figured by dividing the amount of credit available to you on a credit card or auto loan, and dividing it by how much you are currently owe.

High debt loads will scare away most lenders. Try to keep your debt to under 50% of what is available to you. Lenders will appreciate it, and you will be more likely to get approved for a mortgage.

No Credit or Bad Credit

Few things can derail your mortgage loan approval like credit issues. Having no credit record can be as bad for your approval chances as bad credit. With no record of timely loan payments from anywhere, a lender is unable to determine your likelihood to repay the mortgage. Some lenders will consider other records of payment, like utility bills and rent reports from your landlord.

If you have frequent late charges or collections, you’ll need to work at getting those paid on time, every time. There aren’t many lenders who’ll approve someone with bad credit, especially in today’s market.

Talk to your loan office to determine which problem applies to you, and learn the steps to fix it. Then, you can finance the Hollywood real estate of your dreams.

If you’re ready to buy a home or condo, I can help. Together, we’ll determine how much you can afford, and I’ll negotiate to get you the best price and terms. Give me a call now at 954-663-2539 to get started!