DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

As much as we hope that we never have to experience a natural disaster, there is no guarantee it can be avoided.  It seems that no matter which part of the country you live in you are faced with the risk of experiencing some type of natural disaster at some point.  There are some steps you can take to help protect your home and family from a natural disaster.

The first thing that any homeowner should do is evaluate their homes for any risk areas.  Using the most common severe weather in your area as a guide, carefully inspect your home and locate any weak spots that may become damaged during a severe storm.  During this evaluation process you should also check your home insurance policies to ensure that you have the proper type of coverage for your region.  If you discover that you are missing some important types of coverage contact your insurance agent and ask them to add that coverage to your policy.

The next thing that should be done is find out where your home is vulnerable.  Depending on the type of severe weather threat your area experiences there are some storm-specific home improvement steps you can take to lower the risk of your home becoming damaged during the next storm.  If your area is prone to hurricanes you may want to consider adding storm shutters or installing hurricane straps to help keep your roof in place during high winds. 

The third thing you can do is to create an emergency kit.  Every home should have an emergency kit that includes water.  Experts suggest that you have at least one gallon of water for every person for at least three days.  The next thing that you should include is food, a three day supply of non-perishable food and a can opener should be part of your emergency kit.  The next thing you will need is a battery powered or hand-crank radio.  You should also include a flashlight, first aid kit, cellphone, cash and a whistle in case you need to signal for help.  Once you have these basics in your kit you should also add any supplies that are needed to treat special needs.

The next thing that should be done is to take inventory of your personal property.  Creating an inventory of all your personal property will make it easier to file any insurance claims should a disaster occur.  Not only will a personal inventory make the process of filing an insurance claim easier, it can also be used to apply for federal disaster aid should the need arise.

The final thing that you and your family should do is to create an emergency plan.  Your emergency plan should include escape route plans and a specific place where you should all meet if you are separated.  Creating an emergency action plan isn’t enough; you should also practice the plan to ensure that everyone knows what they should do and how to proceed.

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Selling your home can be one of the most stressful events you ever experience, but if you are ready to list your home there are some things that you can do to help make it memorable in the minds of potential buyers.  One of the best things you can do is provide buyers with a mental picture of how the home looks with furniture and art in place.  If you are not comfortable with your own items or feel that they are not the right quality to influence potential buyers, you may want to enlist the help of a professional staging company.  Professional home stagers know how to incorporate artwork into your existing home to provide a pleasant and warm feeling throughout your home.

If you choose to use your existing pieces and stage your home on your own, there are some things that you can do to make your art work for you.  One of the first things you can do is to hang those large art pieces that you may not have been 100% sure about.  Using large pieces on the walls helps to make the room seem fuller.  Large canvas pieces can be used to help make a large wall not look so empty.  Colorful canvas pieces are also a great way to make your rooms feel more cozy and inviting.  Buyers would rather see a large canvas print on large living room wall than an empty wall.  It provides them with some ideas as to how they can decorate if they purchase your home.

Another way that you can incorporate artwork into your home is by hanging several smaller photos or prints together to form a type of collage.  When properly hung the combined smaller pieces will appear to be one piece instead of multiple pieces.  This technique is great to use behind a sofa or above a console and bed.  You can create a visually appealing collage using either canvas pieces or framed art.  You may even want to try adding mirrors or stained glass items to bring some color into the collage. 

When hanging art on your walls you should hang it so that the middle of the piece or collection of pieces is at eye level or approximately five feet off of the floor.  If your walls feature any type of decorative wainscoting or paneling you may have to hang the artwork a little higher.  But remember to keep it at a level where the person viewing it is not straining to see it.  If you are going to be hanging a piece of art behind a couch or chair you want to hang it a level where the person sitting down will not be constantly bumping their heads on the art.

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If you are a first home buyer, you may want to look into the programs available in your area. There are many different home buyer programs available. These are usually presented through lenders or housing agencies. You can find out specific information about first time home buyer programs in your state on the HUD website.

However, discovering these programs is not enough. You must understand how they work in order to understand how they can benefit you, and for you to choose which type of program to enroll into. You will need to learn all of this information before making a decision and getting ready to buy a home.

There are typically two types of programs available. There are programs that give you cash assistance to help come up with down payment and closing costs. These offer the immediate benefit of not needing to save a lot of money before buying a home, which can be difficult for many people if they are just making ends meet. A lot of people can afford a mortgage payment, but cannot save for a down payment while also paying rent. These programs are there to help these people.

If you do have the money for a down payment and closing costs, there is still likely a program available for you. These programs offer you a lower interest rate instead of cash assistance. Your interest rate could be a half to one percent lower than if you did not use the home buyer program. This offers a more long term benefit, as it will save you a lot of money over the years as you pay on your home.

Those who have the ability to save for a down payment will benefit most from doing so and getting in on the lower interest rate. However, those who cannot will need to go with the more common option of cash assistance. Either way, these programs can be of great benefit.

One thing that many people are not aware of is that you still have to have very good credit to take advantage of these programs. You must have credit that is good enough to get a regular home loan in order to qualify for these programs. This means that you cannot have any delinquent accounts, defaulted loans, or past due utility bills. Any type of collections will also hurt your score. Your score will need to be at least 650 or higher in order to qualify for the first time home buyer’s programs.

You can get more information about these programs by contacting lenders, realtors, and housing agencies. All of these individuals will have information about the programs in your area, and be able to point you in the right direction.

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Whether you are looking to leverage equity in a commercial real estate venture or just wish to borrow working capital in order to expand your existing business, the process is quite complex. In fact, it is much different in nature than obtaining a home mortgage.

Commercial loans are not ultimately backed by a governmental source. This sets them apart from the majority of home mortgages. Because of this, most commercial lenders will charge a higher interest rate than would be received on a comparable home loan. Some lenders will even scrutinize the business itself as well as the commercial property that will be collateral for the actual loan. Because of this, the expectations should be different for a commercial loan than they would be for a residential loan.

There are several questions you should ask yourself and the lender before deciding to apply for a commercial loan. The answers will help you make a well-informed decision.

How will I meet the loan repayment terms? This is an important question with any type of loan, but you’re talking about a lot more money with a commercial loan which makes it even more difficult. Typically, it is required that a borrower pay an entire business loan back much earlier than the stated due date. This is done through a balloon repayment. This means the borrower pays both interest and principle on a 30 year mortgage at the initially stated interest rate for the first few years, and then pays it all off in one balloon payment. The stated interest rate is usually adhered to for 3, 5, or 10 years.

This is often very difficult to do since most borrowers aren’t able to save enough during such a short period of time. This means they have to requalify or refinance the loan at the end of the balloon term. Should the business have any cash flow problems during the years just before the balloon term, a higher interest rate may be required by the lender. It is also possible the borrower may not qualify for a new loan. This can mean no financing for the borrower and ultimately, foreclosure on the property.

How much should I borrow? Go into it with the intent of borrowing enough to meet current business needs. You should have enough money to at least leverage your real estate investments.

How long will it typically take to get a commercial loan? You will begin the process by contacting your bank. Unfortunately, most banks don’t allow you to secure a business loan. It usually takes several weeks before a verbal or written commitment can be obtained. This will come in the form of a letter. Even though this occurs, the credit committee can veto the loan. If this happens, you’ll have to begin all over again with a new lender. If you have a good credit rating and a good relationship with your bank, you may get the lowest stated interest rate from a local bank. Being able to show your profits and having time to wait will also serve you well.

Securing a loan is not an easy task. The key is patience. If you meet all the requirements and can wait for an answer, you’ll have a better chance of getting the loan at an interest rate that will work well for you.

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The average American is still sitting on the fence about whether they want to jump back into the American Dream of owning their own home.  Many have experienced foreclosure, and many more have friends and relatives who have lost their homes.  The younger buyers who were the market-propping first time home buyers are staying out of the market in droves.  Either they can’t afford the down payment, aren’t able to meet new loan criteria, or they just want to rent while the economy settles down.

So, if move-up buyers aren’t buying, and if first time buyers aren’t buying, why the recent jump in prices in some areas?  In other countries, American home prices are now perceived as extreme bargains.  Canadians, Chinese and Mexican buyers are jumping into our market with a passion.

Foreign purchases of U.S. homes have climbed by 24% since 2011, according to the National Association of Realtors.  These purchases reached $82.5 billion in total annual sales, and have helped in some hard hit markets like Miami.  Foreign buyers see the current American housing market as a safe haven for their money.  They believe that the worst is over, and that even if they don’t make money on a home, their money will be relatively safe in this investment climate.

One Miami Realtor estimates that currently around 35 to 40 percent of their business is conducted with foreign buyers.  Brazilians are entering that market, as they like the water.  Europeans like the west coast of Florida because it’s quieter, and the Canadians like the middle of the state.

And, even though prices are beginning to rise in many of the areas preferred by foreign buyers, they’re going to remain interested because they aren’t just price shopping.  Their motivations include:

·      they want a trophy home.

·      investing in the U.S. for safety of their money.

·      desire for vacation homes.

·      purchasing as rental units.

Miami is a perfect illustration of this trend, as prices there jumped by 2.1 percent from June to July.  Miami is an international city, thus the foreign buyers prefer it to many other markets in which they could invest.  Canadians are big buyers, as prices up there are still very much higher, and they’re able to buy a warm climate vacation home for a fraction of what they would pay for a residence in Canada.

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