Avoiding Foreclosure & Saving Your Credit

The How To For Avoiding Foreclosure

If you are struggling to avoid foreclosure on your property, there are a few ways you can work to stop this. We are here to help! Check out some of these tips to help you avoid foreclosure:

Don’t Procrastinate

When it comes to making late house payments, procrastination is your worst enemy. If you are in a financially difficult spot in your life, don’t wait to receive a foreclosure notice. Ensure your creditors are fully aware of your situation and talk with them about your circumstances. Work out what you plan on doing about your financial situation and make sure your creditors are aware of your intentions. You’re going to need to correct your financial issues and make up any back payments. Your creditors can help you with a payment plan that benefits both of you.

Loan Modification

Another great way to avoid foreclosing on your house is through loan modification. Talk to your lender about discussing this option, and you may be able to work with them to modify the terms of the loans you currently have. In negotiating to modify your existing loans, you will, of course, want to get the best new terms as you can to allow you to keep up with payments and avoid having to foreclose. This process is going to be a tricky thing to negotiate since the lender is going to want to make as much money as they can, but they are also aware that if the terms are not feasible, you will not be able to make payments on time, and they will lose out anyhow. Throughout this period of discussion, you will likely be talking with a loss mitigation representative at the bank. These individuals are not bound by confidentiality, so be aware of what you say to them and what information you choose to disclose.

Always come fully prepared for these negotiations; otherwise, you could end up in no better a situation than when you started. Bring as much relevant evidence as you can, including proof of income, bills, or specific financial hardships you have been facing.

Debt Management

If you need assistance in managing your debts and mortgage payments, you could also consider turning to a debt management company. These companies can come in a vast range of quality, reliability, and authenticity, so ensure you do thorough research before choosing one. However, if you can find a trustworthy debt management agency with a good reputation, they could help you manage your debts, which could be in the form of consolidating your debts into a single loan and offering decreased interest rates as an additional incentive.

Sell Before Foreclosure

If all else fails and none of these options have worked out for you, you can always sell your house outright before the foreclosure date. There are plenty of house buying companies out there looking to send you a cash offer for your property. At Antioch Properties, we can save you the trouble of dealing with foreclosure and the damages it can do. We will buy your house for cash in its current condition, and we can even pay off any defaulted loans or arrears in the process.

If this seems like the right choice for you, call us today for advice and support at (719)375-2056.

Eviction Process for Landlords

The Colorado Springs & El Paso County Eviction Process for Landlords

As a landlord handling property in the Colorado Springs or El Paso County area, it is vital to know the proper procedure for dealing with tenants who are non-compliant or have violated the terms of your lease agreement. The following is a straightforward run-down of the essential steps involved in dealing with evicting a non-compliant tenant in the Colorado Springs or El Paso County area.

1)    Get an Executed Lease with Your Tenant

Having a signed written lease with your tenant is an incredibly important factor in the eviction process. Without this invaluable document, the result of the eviction proceedings will rely on your word against the word of your tenant. In the case that you do not already have a signed and properly executed lease with your tenant, you may need to consult an eviction attorney for advice.

2)    Post Official Notice and Photograph It for Evidence

Depending on your particular situation, you will need to post either a Notice to Quit, a Right to Possession Notice, or Demand for Compliance Notice and then take a photograph of it to keep as further evidence immediately following any non-compliant behavior from your tenant—including late rent payments, unauthorized pets or residents on the property, or any other violations of the terms of the lease agreement.

3)    Schedule a Court Date

Getting a court date at the El Paso County Court House is the next stage in the eviction process, but you will need to fill out several necessary documents before doing so. Following the appropriate time during which the tenant is required to vacate the property and comply with the demands of the relevant notice, and if the tenant has failed to comply, you will have to fill out the following forms:

-       A complaint in Forcible Entry and Detainer (JDF 99) 

-       Summons in Forcible Entry and Unlawful Detainer (CRCCP 1A)

-       Answer Under Simplified Civil Procedure (CRCCP 3)

4)    Serve Your Tenant

The final step in the eviction process is to hire a private process server to serve the tenant/defendant. Alternatively, you can go through the local Sheriff’s Office to do this. The courthouse itself provides you with the original copies to serve your tenants, after which you will need to return the originals to the courthouse. You will also need to have your process server fill out and notarize an Affidavit of Service to provide evidence that the tenants were served their summons, and then give this document to the courthouse.

5)    Appear in Court

Come prepared for your court date, arrive on time, and bring all the relevant paperwork needed for the case. If your tenant doesn’t show or issue an answer, the judge is likely to award you possession, after which you will be required to return after 48 hours to pick up the Writ of Resolution. This document is your official Eviction Notice. Once you have picked this up from the courthouse, you will need to arrange for a Sheriff to post it at the property and assist in removing any of the tenant’s property that has not been vacated.

**This is not intended to be legal advice and is only for informational purposes.  Please consult an attorney if you are not comfortable with the Colorado Springs Eviction or El Paso County Eviction process.

How To Make Money Off The House You Live In

How to Make Money off of the House You Already Live in

With the unprecedented rise in companies like Uber and Airbnb, we are living in a time where renting time, space, and resources from other people is a regular, day-to-day occurrence. Renting cars and houses has been standard for a while, but in recent years processes like these have been streamlined. Why rent a car when you can rent a driver for a specific journey? This way, there is no longer any need to sign a contract or deal with all the other paperwork that used to be a necessity.

Vacation Rentals

Nowadays, with services like Airbnb, we can open our phones and in just a few minutes, be fully set up to rent someone else's apartment out for just a few days at a time. Vacation rentals are incredibly popular among those who want to travel hassle-free, so it can be one of the easiest ways for you to make money without investing an entirely new property. Instead, invest your time and money into renovating your own home into a highly sought-after rental property. Making your home into a rental property can be a great option if you frequently travel, as you can offer your house or apartment to other travelers and make money while you are away. Alternatively, convert a section of your property—be it a vacant room, an unused garage, or your basement or attic—into space you can rent out. With larger areas, you can even make your own studio apartments in which people can stay. There are plenty of resources online to help you with this, like this guide from CNBC and this Forbes article.

Tiny Houses

In the same vein, investing in a tiny house or even a mobile home can provide the same opportunity to make more money from real estate without relocating. This kind of property is particularly desirable for people to rent out if they are parked/located in an attractive area. In fact, Escape Homes' Rental Program makes it possible to profit from tiny house rentals without even owning one if you have land available in desirable areas, Escape will handle the house rentals as long as you provide the place for it to sit.

Flat Sharing/Spare Rooms

If you have friends or coworkers in need of a place to stay, or you want to get into the rental real estate business, consider investing in a decent-sized property and renting out rooms. If you can, purchase a house and rent out each room, whether to people you know or other people in need of a room. Flat sharing or spare rooms can be an excellent opportunity for students, though people of all ages are now looking for places to share. You may even have an extra room to rent out on a more consistent basis for an Airbnb listing. Make sure you know what you are precisely getting into with these types of rentals, but if you do it right, they can be a fantastic way to make extra money from the property in which you already live.

How To Screen Applicants To Find The Best Tenant

Screening for the RIGHT Tenant

Choosing the right tenants for your rental can make owning a rental a breeze or a giant headache. They become an asset to your rental property.  Here are the two quick tips to help you choose the right tenants.

Take your time

Your prior tenants move out, and you start to panic. You picture your bank account in the red where the rent is supposed to be. In desperation, you list your property and pick the first applicant that wants to be your renter. Stop, breath, and take a moment to think. If you take your time, set criteria for upcoming tenants, then it can benefit you in the long run. Again, if you choose the wrong tenant, it could be a lingering headache that will cost you time and maybe even cost you more money in the long run.

Criteria

So, what should you look for in a tenant? What standards are the most important? When some landlords meet their tenants, they go with their gut at the expense of documents that show they are capable tenants. It’s vital to start with a detailed application that accurately vets your tenants. The form will only ensure you have the right tenant for your rental property. Some critical criteria to consider are the following:

●      Employment history

●      Rental history

●      References

●      Background check

If someone had four jobs in four years, it might be hard to imagine them with a stable income to pay the rent.

Moreover, they might like change and won’t stick around long. Someone who’s been at the same company for a more extended period shows maturity and stability, both in themselves and probably, their bank account. So, I ask for four years of employment history. In addition to employment, I want to know where they’ve lived during those four years. Looking at a tenant’s rental history is also another good indication that they’re willing to stay in one spot. That information, along with the prior landlord’s contact info, is essential. References from previous landlords, former employees or bosses, and current friends are helpful to get a 360 view of an applicant. They can give you the inside scoop on a prospective tenant and share their experiences of this person.

A background check is one of the final steps to take before signing on a new renter. It may sound scary for you as well as a prospective tenant, but it shouldn’t be. A background check mainly confirms a person’s identity. It is a way to screen tenants and identify any red flags about their financial background. Usually, there’s a fee involved for you to run a background check and for the prospective tenant, so only serious tenants will be willing to take this extra step. Furthermore, if you tell them from the get-go that you’re doing a background check, they will most likely be honest and forthcoming on their financial, employment, and rental history.

Why You Want a Long Term Tenant

Why You Want a Long Term Tenant

Let's go ahead and answer the question of why having a long-term tenant is beneficial to you as a property owner.

Save Your Money

It’s going to cost you money to continuously rent out to short term tenants, and you're more likely to lose money if you have long periods of an unoccupied house while you wait for new tenants to move In. You're also going to have to think about the cost of home improvements when you’re continually renting to new short term tenants. Surveys have shown that 63% of homeowners renovate their house before renting to new tenants. If you have to do that every six months, think of all the money that is going to waste! So yeah, if you’re thinking profit, a long-term tenant is the smarter option.

Loyalty

You rely on your tenants for money, and they pay the rent, you get the cash flow, simple. So, when you rent your property, you want to make sure that you can trust your tenants with payments and keeping the house in good condition. If you look after your tenants, they will look after you and your property. You'll also be able to get to know your tenants and build a good relationship with them. By doing this, you'll learn their background and lifestyle, which is useful when you're renting a property as you can decide whether they're going to suit the area of your property. For examples of ideal tenants, check out this article on choosing tenants. 

Avoiding Stress

Landlord stress is on the rise, and overall if you're going to be renting your property to a line of short-term tenants, you're going to find yourself in stressful situations a lot of the time. Think about it, what do you have to take into consideration each time you rent to someone new:

• How long the house is occupied for before you find new tenants

• Waiting for the application process to go-ahead

• Dealing with new difficult tenants

• Repairing damages and checking Inventory (if you're renting a furnished property)

• Going through the same renting process multiple times a year 

You do not want to be continuously worried about your property, as it will begin to take over your life. Such difficulty is why a long-term tenancy agreement is beneficial as you will have the flow of money without the flow of stress.

Should You Buy A Single Family or Multi-Family Investment Property

Should You Buy a Single Family or Multifamily Investment Property?

According to Billionaire Andrew Carnegie, 90% of millionaires got their wealth by investing in real estate. However, when looking to purchase an investment property, there are several factors for you to consider. One of the biggest is whether you want to own a property for a single-family, or a building that can cater to multiple families. There is a lot of debate in the investment community about the pros and cons of both of these situations. To give you some clarity about this issue, I wanted to talk you through some of the reasons why I prefer to own single-family homes. However, you should keep in mind that this is just one perspective. Some people might prefer to own a multifamily investment property.

My Experience

I wanted to start this article by talking about my experience with owning investment properties. I have owned both of these types of properties, which has given me a unique view on this situation. Based on my experience, I would choose to own single-family properties as opposed to multifamily investment property. There are several reasons behind this decision—let’s look at some of them.

Ease of Management

One of the most significant benefits of owning a single-family property is how easy they are to manage. Even though I work full-time as a real estate investor and manager, I still struggled to keep up with the demands of a multifamily property. Often, these properties tend to drive more disputes than single-family homes. There are several reasons for this. First, multiple tenants tend to share the same wall. As such, it means that you will need to work through more disputes. For example, someone might be making too much noise or be cooking smelly foods. Besides, the parking spaces on these properties tend to be limited, which can also create disputes when tenants try to have a party. If they invite their friends and family over, they might park in other tenants’ space. Because of this parking issue, you may become involved in more disputes that you care to sort out. The problem I had was that I kept getting complaints, which I would be responsible for straightening out. I felt like I was made to be a nanny for everyone on the property.

You will also need to think about how many repairs you will be required to perform. With multifamily homes, you can get more tenants. However, this means that you will need to perform more repairs each year. The amount of maintenance can quickly become a significant expense.

Owning a single-family property takes away most of these problems. With just one unit per property, you see fewer neighbor disputes about which you need to worry. Besides, it’s easier to build a strong relationship when you can focus on one family/resident at once. Because you don’t have to spend as much time sorting out disputes, you are free to spend more time focusing on your portfolio. Concentrating on your portfolio will ensure that you will be able to make the wisest investments.

Single-Family Homes Have Lower Turnover

Another critical factor to consider when choosing a property type is how much turnover you will receive. When one tenant leaves, it can be expensive. If the property is vacant, you won’t be able to collect rent. Besides, you will need to advertise to attract more people to the property. There are a few factors that affect the turnover rate. However, one of the biggest might be the size of the property. Multifamily homes tend to have limited space compared to single-family homes. If a family has more room than the more items they bring, and the more difficult it will be for them to move out.

Conclusion

When you start to invest in the property market, one of the most critical choices that you will face is whether you want to own a single-family or a multifamily home. I discussed some of the reasons why I preferred to invest in single-family homes. To give you a different perspective, you might want to consider the points made in this article from Mashvisor. If you have any questions, feel free to give me a call or send me an email.

Getting Started Investing With Single Family Rentals

Getting Started Investing in Single-Family Homes

It is not uncommon for people to find the prospect of breaking into the real estate industry somewhat daunting. Whether you are looking to purchase your first home or investing in a property, buying a house can seem like a big deal. But if you know what you're doing—and you go about it in the right way—it can change your life for the better. Making a real estate investment, particularly in single-family rentals (SFRs), offers a range of advantages and incentives to first-time investors. The most apparent quality of assets of this nature that attracts individual investors is that they provide consistent, monthly cash flow. In addition to these short-term benefits, SFR properties also offer the potential for equity growth since the mortgage is paid down. They also provide the incentive for the appreciation of the property value over time.

Benefits

The best part about investing in this class of asset is that you don't have to completely re-design your life around it. You can start slowly without having to disrupt your everyday life while working to secure a more financially stable future for yourself. Of course, you will have to properly asses your finances before making such an investment and work out if or when you will be able to do so. You don't necessarily have to go out and buy a house to start renting, as this might not be feasible for you. If you can secure a loan with low-interest rates it will be much easier to get started. To do this, you will need to:

-        have a good credit score (740 or above)

-        have the funds to make a considerable down payment

-        turn to local banks for more flexibility

You may want to consider working this investment plan into your next move—on average, Americans move once every five years. So, instead of rushing out and trying to find a property to rent out, you can convert your current home into a rental property when you next move.

Advice & Guides

Check out Building Wealth One House at a Time by renowned real estate expert John W. Schaub for a practical guide to making your first real estate investment. Schaub reminds us that you don’t have to be a big-time real estate guru flipping hundreds of houses every year to be a real estate investor. You have to be decisive and make a full long-term plan for your investment goals. Work out precisely what type of returns you want to generate and fully detail your other criteria for a potential Investment.

Take a look at this guide from Forbes on How To Get Started With Single-Family Rental Investing for some advice on how to best break into the real estate investment business. And if you think single-family rentals are the right investment opportunity for you, do plenty of research, talk it over with people you trust, and get in touch with your local real estate market to find out what all of your options are.

The Best Way To Market Your Rental

2 Game Changing Tips on Renting Your Property Faster and for More Money

The best way to get your property rented out as soon as possible for the highest price is to show it off! It would be best if you attracted the attention of your potential tenants, and the best way of doing that is by showing them what a lovely home you have to offer. There are two most valuable ways in which you can do that, and this article will go in-depth about them both, so here we go.

Tip #1: Images!

Like anything to do with media, people are always attracted to the better-looking images. Think about when you book a hotel or a holiday. You still browse through pictures, don't you? Then, after checking, you will more likely choose the hotel or holiday with the best visual representation. Now think about the properties you have seen in advertisements. Have you ever seen a property photo that is supposedly marketing the property, and it’s a grainy, dark picture of a toilet? Compare that to a professional bright, wide-angle photo, and on the same property with those two different pictures I guarantee that you are going to stir up more interest with a professional photograph. Trust me it is worth spending a couple hundred dollars either for a proper camera lens for your phone or hire a professional.

Tip #2: Staging Your Property

My second tip is something I tell every seller and landlord. You need to stage your property. Staging does several things for a prospective buyer or renter.

Firstly, it helps your potential buyer or renter mentally visualize where they would like their furniture to be placed. Half the battle when choosing somewhere to live is making sure you have enough space for your furniture to live. So, if you strategically place furnishings in fitting, flattering places, it will help give tenants an idea of how to lay out their furniture.

Secondly, it just looks better when you’re showing the property. Now you can hire a professional stager, and I’d be happy to refer a great one, but you can even use your furniture or take pictures before the tenant moves out and use their furniture. You can also make areas in your house look more prominent if you carefully place your furnishings in the correct places. The point is to be more conscious of the little things when marketing your properties to help get people interested— for more tips or references on whom to use for pictures or staging, feel free to reach out to me anytime.

Should You Rent or Sell Your House?

Should You Rent or Sell Your House?

If you are a first-time landlord, you’re probably going to think about whether it is best to rent out your property or sell it. There are, of course, pros and cons to both options, and it will depend on what your situation is. This article will provide you with information about renting and selling your home, have a read, and weigh up your options so you can decide which decision is best for you. 

1.   Money, Will I Make a Profit?

If you’re considering renting your house, this is the question you want to be asking yourself. Take the time to think about where your home is, the value of it, monthly expenses, and tax. If you can put your home up for rent and earn a decent profit, then renting is a good option as you will make a good cash flow. This cash flow would be useful if you have recently moved and need more money to help pay off your new mortgage. If this isn’t the case, you will find yourself paying more money for owning two properties, and therefore, you would benefit from selling the house.

Another thing to think about is taxes.  Section 121 provides all the information you need regarding tax and property selling. It basically states that if you have lived in the house for more than 2 years, owned the house and waited at least 2 full years before using the $250,000/$500,000 tax benefit on another primary residence, then you won’t need to pay tax on up to $250,000 profit or $500,000 if you’re filing as a married couple. So think about if any of the above criteria apply to you.

2.   Do You Have the Time?

How busy is your life schedule? As a landlord, you will need to spare some time to look after your property and tenants, especially when things start to go wrong. There might be damage repairs, tenants break their contract, or there are complaints from neighbors. These are aspects of being a landlord, which you will need to consider and address when the time comes. Say you have a tenant not paying rent, do you have the time and money to take that tenant to court to receive your payment. If there is a leak in the roof or doors that need fixing, do you have the funds to hire professionals to come and fix the house? 

3.   Will You Ever Need the House Again?

Are you in a position right now where you can confidently tell yourself that you will never need the house again? The good thing about renting your home is that you can effectively move back in whenever you need to. Or, for example, you have children, would you want to hand your property down to them? Or, you could rent it to your offspring and their partner if that option applies to you. The good thing about renting your property is that you can choose whether you want to rent it long term or short term, meaning you can take the property back whenever you need to. If you sell it, well, this is a more permanent option, so you will need to think about whether you’re ready to say goodbye to your house.