Tag: Risk

Posted on

Developers Are Opting for “Detached Condos” Rather Than Platted Subdivisions

It could be a fatal mistake to invest in a property that appears to be a free standing house, but is actually a detached condominium! ALWAYS check the legal description if you are actually looking for a single family detached home; if it’s actually a detached condominium you’ll see “unit” or “condo” in the legal description.

Many MLSs, title companies and yes, even lenders misclassify this kind of ownership, thereby creating appraisal, mortgage and title problems. Realtors/MLSs add to the misclassification by quoting “lot size” — there is no individual condominium lot size — the lot size is for the entire development! Detached condo owners typically own the “surface” of the land under the structures, the structures, 200 ft. above the land, the systems, tree roots and anything that supports the home. The HOA owns everything else.

Detached condominiums are widely found in Texas, California, Florida and many other states.

Posted on

House Flippers Operating on Smaller Margins

Which means that YOU, Mr. & Mrs. Buyer, may not be aware that a home offered for sale may be “a flip.”

You’ll definitely need to have a potential home purchase inspected, even if it’s a new build!!! In flipped properties the flipper may have taken shortcuts & thereby covered up potentially expensive defects. Even flippers are required to disclose known defects when selling properties. Many people just don’t want to remodel a property themselves. You could make yourself some sweat equity though if you are willing to do it right. That means finding a property that needs some work but you could purchase it for less than replacement value. Then take it down to the studs, and do it right. It will pay off when you resell.

Posted on

Residential FINCEN Rule Goes Into Effect for Entire US on December 1, 2025 (Will Affect ALL Cash Buyers)

house of dollars

QUESTION: Is it a transfer of real property containing a structure designed for 1-4 family occupancy, land on which transferee intends to build such, or shares in a cooperative housing corporation to a legal entity or trust without financing through an institution required to have AML procedures? IF YES, A REPORT IS REQUIRED!

Exemptions include:

Transfers to a trust by an individual, without consideration and where transferor is both a beneficiary and a settlor

Transfers resulting from the death of an owner including to or by a P.R.

Transfers by or to bankruptcy estates, trustees or court appointed receivers pursuant to bankruptcy proceedings

Transfers that create, convey, modify or terminate an easement

Transfers pursuant to a final divorce order, judgment or settlement agreement

Transfers supervised by U.S. courts

Transfers to a qualified intermediary in a 1031 exchange

Transfers that do not involve any “reporting person”

ALTA INFO/FORMs:

https://www.alta.org/file/ALTA-FinCEN-Seller-Collection-Form-v-10

https://www.alta.org/file/ALTA-FinCEN-Buyer-Collection-Form-v-10-fillable

Posted on

If the FED Cuts Rates in September Will Mortgage Rates Decline?

Actually, the FED doesn’t control mortgage rates, they follow the 10 yr. US Treasury rate. It’s even a possibility that mortgage rates could rise if inflation stays above the FED’s desired rate and/or the job market/unemployment rises to recessionary levels.

One circumstantial indicator of a recession is a sharp decline in residential construction employment. Keep your eye on this one. Right now, new home builders are flush with inventory, offering better interest rates, etc. They are competing with the resale market, so if you are trying to sell your home right now, you may not be in a position to compete with them. The new home builders don’t want to keep large inventories of homes on their books.

Privacy Policy Proudly powered by WordPress
Loading...