$8k Tax credit can for First Time Home Buyer for Down Payment!!!

"DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME
FHA plan will stimulate new home sales and help stabilize housing market

WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website."

Contact me for more info!
David Bramante
www.DavidBramante.com

What it takes to buy an apartment building in this economy (Or a brief explanation why you shouldn't invest in gold bars)

What it takes to buy an apartment building in this economy
(Or a brief explanation why you shouldn’t invest in gold bars)
By David Bramante

Very few people will ever own an apartment building, but almost everyone will rent at one point in their life or another. Even with the many requirements fulfilled, securing a commercial loan can be especially tough in an economy like this one.

Though retail and office buildings sales have plummeted, with huge retail chains and businesses slamming their doors over night, tenants are still viewing and renting apartments, and investors are still buying and selling commercial real estate everyday. This will never change no matter what economy we’re in.

So what does it take to buy this hot type of commercial building (a commercial / apartment building is considered 5 units or more)? It takes a lot. So if you’re interested in building true wealth, you need to know what is expected and take the necessary steps.

The most obvious requirements are cash and credit. For a conventional commercial loan with an interest rate of 6 to 6.5 percent, you will need a minimum FICO score of 680 and have 30 to 35 percent of the purchase price for a down payment. This is not very different from conventional residential financing at about 5 to 6 percent, where you need a minimum FICO score of 640 and about 30 percent for a down payment. But that’s were the similarities end.

(Example: You will need $225,000 down to purchase a 10-unit apartment building for $750,000).

In Southern California, those aren’t very rigorous requirements because there’s an abundance of cash flowing throughout the region. But obviously, $225k is not chump change and for the large majority of people that live month-to-month on salary, this will never become a reality.

What do you need next? You must be liquid (aka have cash reserves) equal to 6 to 12 months worth of mortgage payments (interest and principal combined) and have a net worth that is equal to or greater than the purchase price of the property (networth equals your assets minus your liabilities).

So that’s what it takes to own an apartment building. It’s a blue print for becoming an apartment tycoon and creating true financial wealth, but these requirements are the reasons why there are so many renters and so few owners, and why investing in apartment buildings is better than investing in gold.

For those that can't buy an apartment building, the alternative is buying up to a 4-unit building, which is a hybrid: You can buy multiple units and collect rent, all the while utilizing a conventional residential loan to purchase the property.

Thanks for reading. Visit my website!

www.DavidBramante.com

If money is an object, hold off on buying a home (Advice for novice real estate investors)

If money is an object, hold off on buying a home
(Advice for novice real estate investors)
By David Bramante

Most people new to real estate think that buying a home is the first step to living the American Dream. But really it is the largest investment most people will ever make and very few consider the alternative to buying a home, which is buying multiple unit properties.

With the same type of financing, you can actually purchase a 2-unit, 3-unit or 4-unit building. For first time home buyers, you can’t buy more than a 4-unit property because anything larger is considered a commercial investment and so the financing rules change, along with the requirements for down payment.

So rather than immediately buying a home, why not think about a multi-unit property? It boils down to what your goals are. So ask yourself that very question. Why do you want to buy a home?

For most people, buying real estate is an emotional decision, like buying a car. But don’t be like most people. Property and vehicles are investments. Be a novice real estate investor and don’t see homes for sale, just see houses on the market. Take the emotion out of buying because this is a long-term, serious investment that will take you 30-years to pay off. This is a major financial commitment and this is your future, so don’t be rash. Home is where the heart is, but houses are where the money is. Weigh the pros and cons.

So now think of buying a property as buying an investment. If I were to offer you an investment that gave you a greater return on your down payment, would you at least consider it? Honestly, why would any investor buy a 1 unit property, when he/she can get a 4 unit property for almost the same price and same great financing? The investor wouldn’t because it doesn’t make sense financially.

Let’s go back to the original question, which is what are your goals in purchasing your first real estate investment?

The main reason should be about creating true financial wealth, not be about satisfying a desire to live the American Dream in the traditional sense because the essence of the United States is not cute homes with picket fences. The US symbolizes the spirit of the entrepreneur, the visionary, the cowboy. And so when it comes to buying your first real estate investment, the American Dream is really about being an investor with the credit, liquidity and gumption to seize opportunities, where others see risk or lack the discipline to put their emotions aside.

Now, if money is not an object and you are financially comfortable, than go buy the most expensive house you can afford and live happily ever after. But, if money is an object (as it should be not matter what your financial status is), consider holding off on buying that house and start considering multiple units. You may decide that a house is for you and units are not, but know that there are many options when you purchase your first investment property.

Visit my website for more info!

DavidBramante.com

Client Login Section Updated

The secure client login section has been modified. Not only will it include info for current and past sales, where the owners can go to check the status of the property, but also they'll be able to download important documents from escrow, etc.

But the best part is that the area has a new section called "Current Buys". This is where I have searched for specific properties that will generate an income for the first-time home-buyer / investor. These properties will need to make a conservative $1000 in net operating income, and that's just the minimum requirement.

What else will I include (there's a property in there now)? Well I analyze every aspect that effects the property, including market rents, transportation, etc.

I drive out to the property, staying aware of the different factors that would effect the value and rental income, such as area, parking, foot traffic and any glaring signs of disrepair. Curb appeal is important, but the neighborhood vibe is the first thing potential rents will absorb. Most renters use google maps and/or drive-by to determine if the area is safe enough and close enough to the center of action.

Once inside the property, it's all about what repairs need to be made, how long will they take and what issues will make the unit a hard sell (I could go on and on).

So if you're looking for investment property in Los Angeles, especially if you're a first-time home buyer or first-time investor, let me know and I will give you access to this area.

I’m looking for a new car to buy, but I’m having doubts about the best route.

I’m looking for a new car to buy, but I’m having doubts about the best route.

I’m in search of a vehicle and I’m having a little trouble.

Cars aren’t vehicles to wealth and so this month while looking to buy a new car, I’m struggling with my goals in purchasing. Everything that I do is designed to buy real estate. So initially, it’s difficult for me to justify buying anything for more than a couple thousand. That’s why every car I have driven to date has been a used car and one I paid all cash for.

For me, a car is not a symbol of status or wealth but rather a symbol of financial intelligence. Everyone lives beyond their means, especially in big cities, and it’s most obvious when you see people in their cars. But the more I find myself dreaming about that beautiful and new BMW 3-series, the more I find my self analyzing why anyone would throw so much cash away and I end up almost talking myself right out of buying a new or few year old car, again.

There have been times that I’ve been disappointed with my wheels and lack of shiny rims, especially because the potential clients looking out their windows don’t see me and my vehicle as a symbol of frugality to the nth degree, but rather as a chump in cheap piece of crap. You are what you eat and you are what you drive.

But those moments of embarrassment are fleeting and the idea that I’m on to something bigger and better persists. I want to create real wealth and signing up to give my cash away every month to make the “man” wealthy just doesn’t make sense, unless that’s my goal.

But it’s not and my goal is also not to out shine people on the freeway or speed past them on the streets, but to create true financial wealth and I’ll do that by buying one building at a time. Until then, I’ll need to find the intersection where reliable and presentable and cheap and credit-establishing meet.

City View Lofts - Farmer's Market Green Light

Today, I got a green light to start a farmer's market in the parking lot of city view lofts. Why? When? The parking lot is used exclusively by michael's furniture at 7th and union. I've contacted a few of the tenants in the building and spoke to the manager at the charleston about this, and everyone is really excited. if you're interested, let me know. the more help the better. there's no dates or vendors yet, but the dream is becoming a reality.