The Brian and Kindra Show

On Episode 35 of The Brian and Kindra Show, they discussed how to buy a foreclosure.  A foreclosure is where a person who owns a piece of property with a mortgage from a lender has the property taken away from them due to lack of payment. This is similar to a car repossession. Then the lender claims the title to the house. Generally, in Oklahoma they do Sheriff’s Sales to sell the property. This a public auction at the courthouse by the Sheriff. This establishes the price by three appraisals and they average those appraisals, publishing the price in the newspaper. At a Sheriff’s Sale, you have to buy the property at two-thirds value. However, with Sheriff Sales, you aren’t allowed to see the property before purchasing (generally), because it is still occupied by the current owner.  The current owner will own the property until confirmation of the Sheriff's Sale, typically 30 days after. A lot of time buyers call looking for foreclosures thinking it will be an easy buy with easy equity. However, oftentimes they are not as easy as sometimes shown on popular TV programs. Foreclosures can be a lot of work. An owner’s care for the property may dwindle as they are being foreclosed on. Not all foreclosures are not all clean and shiny. Most have an odor issue or significant maintenance/repair issues. You may find some challenges accompanying your foreclosure purchase.  Because of the lack of maintenance and dealing with a foreclosure company that is a third party who has zero attachment to the property, your lender will have some specific concerns depending on the loan type. The foreclosure company isn’t necessarily going to care what the lender thinks or wants. If you decide to buy a foreclosure, it is suggested to do a full title search to make sure everything is clear and ready. Hire an attorney to pull the title and do a full search, or you can update the abstract and send it for a title opinion. When you purchase from a sheriff sale or a foreclosure, you likely will not receive a general warranty deed.  Typically the purchase is granted through a special warranty deed where they do not guarantee that the title is clear and marketable. Also with these types of sales, they do not have surveys completed. You could have issues down the road realizing the property lines aren’t what you thought.To listen to some great stories associated with buying foreclosures, check-out Ep 35 - How to Buy a Foreclosure on YouTube! (https://nwok.forsale/Ep-35) Also, stay tuned for next week’s column where we will learn more about foreclosures and the process to purchase. Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.  

On Episode 34 of The Brian and Kindra show, they discussed forbearance and scams. While they’ve shared a little bit about forbearance in the past, there are a few new items to discuss in light of the recent CARES Act (Coronavirus Aid, Relief, and Economic Security).  Forbearance is an agreement with your mortgage servicer that allows you to temporarily pause or lower your payments for a period of time because of a hardship. Currently, because of the CARES Act, any US any government backed loan (USDA, VA, FHA, Fannie Mae, & Freddie Mac) may be eligible for a 180-day forbearance. They have even extended this so that if you call during the current 180 days and can prove continued hardship, they will extend forbearance for another 180 days.Other loans not backed by the government are owned by private companies or investors. They may be running on borrowed money and need the income from your monthly payments to make their payments. With a private lender, you need to call your servicer to discuss your options. With any type of conventional loan, call your servicer if you need a forbearance. Loan servicer information is always on your payment slip. There are three types of forbearance repayment options: 1 - Paused Payment Option Paid During Existing Mortgage. (The amount of payments missed will be immediately due when the forbearance ends.); 2 - Mortgage Payment Reduction Option. (The monthly mortgage payment may be reduced to half for three months, but they will more than likely spread the unpaid amount over the next 12 months.); 3 - Paused Payment Option Paid at End of Mortgage (Payments are paused for 180 days and they will put the missed payments at the end of the note.). Consider that the paused payment option paid at the end will extend the term of your note or it will add a second note at the end for the missed payments or subsidized interest. The 6 months of missed payments may add more than 6 months in payments. It could be 9-12 additional months because of interest accrued.The most important thing to remember with these three options is that the mortgagor still has the liability to pay their loan, interest and fees in full. Forbearance does not erase payments.  However, it is also important to remember that even while in forbearance you are still eligible to make payments on your loan helping to avoid accruing as much penalty.Currently, due to the CARES Act, if you’re in a bind or hardship, there is a moratorium of starting any foreclosures for more than 120 days past due. If you miss four months of consecutive payments, they cannot start a foreclosure on you until 120 days after. However, if you aren’t in a forbearance, know that missed payments immediately start affecting your credit. If you are in forbearance, the missed payments won’t affect your credit. Last, be diligent to research all of your options and be wary of mortgage fraud. There are many scams circulating. Your mortgagee will not call requesting a partial payment over the phone. If you ever have any doubt with a phone call regarding your mortgage, hang-up and call the number on your payment slip. A few options if you are currently struggling to make your mortgage payments: 1 - call and get a forbearance; 2 - get a mortgage refinance to lower your payment, interest, and/or extend your note; 3 - sell your home and move to a home requiring lesser payment.Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Episode 33 of The Brian and Kindra Show, they discussed landscaping with Jason Covalt of JW’s Nursery & Landscaping. JW’s is a local business of 31 years. When people ask for low maintenance landscaping, there will indefinitely be maintenance. However, there are ways to create landscapes with lesser maintenance.When selecting between annual and perennial plants, keep in mind that perennial plants return year after year while annuals have to be planted yearly. If you go the perennial route, most only bloom for two weeks and then are finished. However, there are some daylilies and irises that will bloom twice. Perennial plants aren’t usually considered as attractive as annual plants because of their blooming season. One suggestion is to plant your perennials and add some annuals to the pot/flower bed for a prettier look.One-third of your landscaping should always be an evergreen. From there you can achieve colors through shrubs and perennials. Then you have ‘annual’ space for color, rocks, or ‘garden junk’. Evergreens will stay year-round and provide some landscaping in dormant months. Why is landscaping so important? 94% of top realtors say that great curb appeal means money in the bank. Buyers value your home anywhere from 5-12% more if it’s eye-catching from the street. Would you really see a 12% swing in your appraisal with landscaping? That would depend on the comparative properties. However, even if you don’t see that much of a return in the appraisal, your home will move faster with great landscaping. Someone who is buying a home won’t necessarily have the time to commit to landscaping right away and the completed landscaping is more attractive to most buyers. Landscaping is patience. Typically, if someone is doing a house remodel the outside is first to be forgotten or funds run out. Landscaping should be budgeted for and kept aside. Manufactured homes on the market tend to have some issues with landscaping. Since they are a quick house to close on, most people don’t do large landscaping - porches, sidewalks, & flowerbeds. There is a big difference between a landscaped house and a non-landscaped house, for both a manufactured home and a home. Country properties tend to have less landscaping as there is more land, but it is equally important. Can you landscape a patio? Sure! Start with your containers - pots, planters, hanging baskets, & wall hangers. Keep in mind some of the same principals!  Evergreens and perennials are still important!  Try planting in a colorful, festive pot to add that pop of color when the plant isn’t blooming. Two final thoughts: First, outdoor spaces are becoming a popular landscaping trend. These are firepits, firedrums, water features, or lilyponds. Second, stickers are a problem here in Northwest Oklahoma. Luckily, there are pre-emergents that you can apply, greatly reducing the stickers in a yard.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Episode 32 of The Brian and Kindra Show, they discussed home inspections with David Strunk of Eagle Eye Home Inspections. Home inspectors in Oklahoma must be licensed and complete 8 hours of continuing education annually.  David says that a home inspector’s job is to report what they see. They will do their best to find all the issues there might be, but unfortunately, they can’t see everything!!  Obviously, defacing a property is not an option, so parts of the home that are hidden behind walls, under flooring or concrete and wiring, etc. are not inspected.  Things that can be seen and even tested such as the furnace, air conditioner, electric, appliances, paint are inspected and reported to the purchaser of the report.  David encourages buyers to be present for their inspections so that he can easily show them concerns and express which items are serious versus items of lesser concern.  When checking the heater & air conditioner performance, the inspector will generally run each unit in spite of the season. The central heating and air is an expensive part of your home. As a home inspector, David often finds that the outside condenser is neglected. Just like a car radiator, when the condenser gets dirty it doesn’t allow the proper amount of air to pass through. He suggests buying a box of air filters, so you are reminded to change your filters routinely.  A good way to check the condenser performance is checking to see if the temperature of the outside lines. One should be hot, the other cool and there should be approximately 15 degrees difference. Kitchens and bathrooms also are very important in the home inspection.  The biggest issue in the bathroom tends to be blockages or slow drains in the sink and tub. Another issue is the tub diverter, the mechanism that makes the water flow to the tub or shower head. Water deposits can cause the diverter to not work properly. The tub spout can be easily cleaned by a strong cleaning agent and back to properly functioning in a short time.  The inspector checks the following items:  Sink drainage, sink leakage, hot and cold water flow, supply lines on sink, the stability of the sink on the vanity, toilet operation, toilet leakage, shower operation, shower leakage, shower floor if it’s grouted, and tub drainage. The kitchen has a very similar checklist and also includes the appliance performance of the oven, dishwasher, stove, etc.  There are some systems and amenities that are more specialized and not checked by a general home inspector.  Sprinkler systems are generally checked by someone who specializes in sprinkler systems.  David says he also recommends cleaning the chimney of a fireplace before it is used. Brian and Kindra noted they often have someone in that business complete the inspections for fireplaces due to their specialized nature.  With fireplaces, it is cautioned that the mortar cap be checked for cracks so that water leaks are not accessing the house.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Episode 31 of The Brian and Kindra Show, they discussed dream homes. What do you need in a home? What do you want in a home? Narrowing down what is important will help you and your real estate professional while you shop.  Obviously, bedrooms and bathrooms as well as garages are the most commonly noted desires or needs of a home, but below are some other things to keep in mind as you shop for your new home.  Neighborhood preferences can play a huge role in home shopping, especially in larger communities with multiple school districts.  Some buyers have a specific school in mind for their children and prefer to shop in those specific school districts.  Other buyers seek locations near health professionals, their favorite gym, or entertainment venue.  More specifically, maybe a buyer prefers to live in a cul-de-sac or a gated community.  Having a neighborhood can allow a homeowner to create new friendships, not only for adults, but for children too.  All of these things can help your agent to be more specific as they assist you in your search.  The type of home is also very important.  Single family homes most often afford the most privacy and independence from neighbors, as townhomes or condos frequently share a wall with the adjacent unit.  With a single family residence, you are more likely to have a yard, requiring more time or expense in lawn care, landscaping, and maintenance.  Some homeowners may prefer to find a home where the lawn is maintained by a homeowners’ association.  The built age of the property is something to consider.  Older homes often mean more maintenance and/or face-lifts when you move in. Brian often compares an older home to a classic car.  They can be quite a joy, but when restoring an owner may find the cost to update exceeds the actual value of the product.  Newer homes tend to be more in-tune with modern design and are most often move-in ready!  It’s important to keep in mind age and your willingness to renovate when choosing a new home.  The size of the home is often one of the first items discussed by buyers.  It seems the 1800-2200 square foot home is a pretty popular size and loved by many.  Currently, ‘tiny houses’ have gained popularity as well.  Floor plan is really the key.  Some homes may be smaller in size, but have such efficient floor plans that an occupant may not miss the extra space.  Speaking of floor plans, the recent trend of an open floor plan is changing slightly to have a more protected kitchen area.  Think what your preference would be and share with your real estate professional.  The outside area of a home is important.  A privacy fenced yard is often at the top of a buyer’s list when home shopping.  Many homeowners have fur babies and desire utmost security to keep their animals safe from harm.  Additionally, an outdoor area can further the entertainment space of a home for you and your guests.  In the country, fence styles may change in order to preserve the view afforded by living on an acreage.   Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Episode 30 of The Brian and Kindra Show, they discussed how to get rich in investment properties. First things first, it is important to evaluate if you have the personality to be a landlord.  Not everyone is comfortable with the difficult interactions that will eventually happen with renters.  If you find you are not comfortable with handling evictions or late fees, etc, a management company might be the best fit for you.  It is important to remember that being a landlord is not personal, it is a business transaction.One of the challenges of being a landlord and owning rental properties poses is building the right team to keep your properties in sound condition. It is necessary to have a team of ‘go-to’ professionals who you can rely on for heat/air, plumbing, construction, etc. By keeping renters happy you are more likely to have a happy return on investment.  A solid lender relationship is another must for your team. When buying investment properties, it is imperative that one be able to purchase quickly, having a lender who is ready with the pre-approval letter to submit with offers. Why would someone want to do rentals? Generally, investors find rentals to be a long term wealth building program with steady income and steady return.  Let’s look at the ROI (return on investment): if you invest $10,000 in a $100,000 loan, having a bank or investor in the other $90,000, then you charge $1,000/month in rent and your insurance, tax, and monthly payment are $900/month, your profit is $100/per month. That totals $1,200 ROI per year, which is a 12% return on your cash out. A lot of times this gets calculated incorrectly where you calculate the return on the full investment of $100,000, which is 1.2%. However, the landlord only invested the $10,000, the lender invested the other $90,000. Their return on investment is your 5% interest.  There are great programs out there for purchasing investment properties. It is recommended to pay off the loan in 10-15 years max. However, a loan at 4.7-5% interest with a 30-year fixed note and 15% down could potentially be obtained. On a $100,000 house, the ROI will be substantial. It is also very important to ‘do your homework’ on potential investment purchases. Pay close attention to maintenance and upkeep.  If there is a high-risk on the property, you typically have a high return. If there is low risk on the property, you typically have a low return. Mobile homes typically have more maintenance work required because they aren’t built as strong, but they are inexpensive to purchase and have high return. Apartments have high-return, but they have a harder clientele to work with. Each time someone moves in/out, you are constantly cleaning and maintaining. Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.