Entering into escrow on a home can be both exciting and stressful. The excitement comes from knowing you are close to moving into the new home. The stress comes from issues that will arise.
As part of any closing, you need to go through certain steps to make sure you are both getting what you think you have purchased as well as paying for it. Each of these steps has an associated cost, known as closing costs. You have to pay them before you can take possession of the home. If you do not, the deal will not close and you will lose the home.
When going through escrow, costs associated with closing can accumulate quickly. Here is a closer look.
Prepaid loan interest is an ugly little surprise for many first time home-buyers. The lender will often require you to pay the interest that accumulates between the day the loan is funded and the day you are actually scheduled to make your first loan payment. Many people mistakenly believe they have roughly a month before they have to start paying. This is rarely the case. The sudden requirement to pay a hundreds or thousands of dollars can be a nightmare. If at all possible, you should try to get the lender to fund the loan as close as possible to the actual closing date, even on it. Try to avoid closing the loan on a Monday. The lender will have to fund the loan the previous work week, which means interest will be growing.
Homeowners insurance is something you are going to need and most people expect as much when buying a home. If you are not informed, however, you will be surprised at closing when you find out you have to pay the full premium for the first year of the policy. Depending on the value of your purchase, this can add a couple hundred dollars to thousands of dollars onto your closing costs. Again, it is important to budget for this cost when putting funds together prior to purchasing a home.
If you are going to purchase a home, you are going to have to pay these two items at closing. Make sure you budget for them to avoid running into cash flow problems.
Working the Markets No One Else is Working!
The great thing about being a part of the Colorado REIA is that we share our personal investing secrets which benefits you!
Do you want to find the best deals out there? Then you must take our advice and work the right areas – WHERE NO ONE ELSE IS WORKING!
Most investors want to work the easy way – Mail postcards, send letters, hire a bird-dog, and so on. Friends, YOU must master ALL forms of deal finding before you can hire it out.
If you don’t know what to say to a distressed homeowner who calls you, then how the heck do you expect an employee to do a good job? You can’t hire something out that you, yourself, have not mastered!
We love to find “honey holes” where we work on specific area until we raise the prices of the homes. Then we find a new honey hole and do it again.
Bill explains, in detail, how to work the under worked areas.
If you are not a member of the Colorado REIA, join today. Membership certainly has its benefits!
Mark in LA
How a day in Colorado can change your life!
Many of you dream of becoming a successful real estate investor, but have no idea where to begin.
When I first started, my biggest problem was finding a mentor. There were none at that time so I learned EVERYTHING by the seat of my pants!
I do NOT recommend this style of learning! I’m truly that one-in-a-million person who figured it out with a lot of help from The Home Depot and its “how to” classes! In my innocence, I actually thought decorating and rehabbing were the same thing…lol.
Soon after I became a real estate investor, God started putting it on my heart to teach others. At first I was like, “God, I have only done a few deals myself. How can I teach others?” God assured me that if I would teach others how a broke, single mom with no experience can do it, it would encourage others to do it, too.
I began teaching small classes in South Florida, soon people heard about me and starting asking me to teach at their REIA, and next thing you know – I’m teaching all over the country! It has been a crazy ride to say the least!
Now, my family owns the Colorado REIA and we teach people across the country how to become superstar investors.
Meet MARK who lives in California and recently trained with us in our “hands-on” Apprentice Program. We actually fly to YOUR area and work with you for two days at YOUR house or office. It’s Incredible!
What is the major benefit of this type of personal training – YOUR LEARNING CURVE IS CUT BY 20 YEARS! You don’t start at the bottom of the investing pool. You start where we are now and go UP from there!
Listen to Mark and if this seems like something you want to do, call our office at 303-838-5474 for details on how you can apply for this training. We limit our Apprentice Training to 50 investors a year!
Twyford Tip - How to Build a Million Dollar Fireplace Using Left-Over Wood!
Do you want to build a Fireplace that will knock people over? Most rehabbers seem to do the same old, same old thing. Replace the kitchen, update the baths, update the basics, and put the property back on the market.
Investors, when are you going to get with the program and start making some million dollar upgrades that cost next to nothing?
We bought this cute, cottage-style property that sits directly on a year-round stream. It had a very old-fashioned fireplace that was built in the 60’s from outdated river rock.
Will Twyford pulled out all of the scrape wood we had left over (which most rehabbers would have thrown into the dumpster), laid it on the floor, moved wood around a few times, measured, measured again and then…BOOM…build this amazing fireplace!
When you walk into this house, the fireplace is the first thing you see, so it was important for us to make it the center-piece of the room. The house is small so the open room and French Doors add visual space.
We also re-designed the kitchen, the upper floor is now one giant Master Suite, and the place is amazing!
Most investors replace whatever was in a space with a new thing that is exactly the same. Don’t put the new kitchen right back where the old kitchen was. Redesign it and make it modern and amazing.
Don’t put the bathroom items exactly where they were. Dig up the concrete floor and redesign the space. Use your imagination to make your rehabs sell quickly.
Follow us, here on Colorado REIA, for the most up-to-date rehab ideas. Our properties are amazing, sell quickly, and bring us huge profits.
Do you want to be a top investor in the Denver Real Estate Market? You have definitely come to the right place!
The Colorado REIA is thrilled to add yet another exciting feature: The Investor Of The Month!
How does one become The Investor of The Month? It’s easy! Simply become a member of the Colorado REIA and close an amazing deal!
Austin and Amanda Faux were presented with the very first Investor of The Month award. They have been members of the REIA since the beginning and have already become movers and shakers in the Denver real estate market.
The Denver real estate market is on on fire! This is currently the number one city in which to invest. There are so many foreclosures, late pays, and no equity deals that this is an investors paradise.
It is important to belong to an organization such as the Colorado REIA, so that you learn proper investing skills. With the owners of Colorado REIA having closed over 2,000 deals, they are more than equipped to teach you all you will ever need to know.
Dwan Bent-Twyford, president of the REIA, had been teaching students for almost 25 years how to become successful! Being a broke, single mom who was fired from Denny’s, she figures if she can do it, so can you!
Along with her husband Bill Twyford and her son Will Twyford, they have created a tidal wave in the Denver market by training some of Denver’s top superstars!
Their motto is simple: People Before Profits. If you are a homeowner in distress or a would-be investor, the Colorado REIA has a home for you! Attend our monthly meetings and watch your world change.
Mark your calendar for our next meeting!