$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

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.