Topgrading for Property Investors and Popular Home Trends
Paul Jamison of the Jamison Family of Companies speaks with Sandy Dickinson of Cross Country Mortgage about topgrading, purchasing property after divorce, who owns your new loan, and popular home trends for 2024.
Topgrading?
Paul recommends that all investors take time to do what he calls “topgrading”. Topgrading is an analysis that you do on your investment properties to determine if you want to keep them or sell them. Basically, you ask yourself the following question about each property you currently own, “Given the current market and existing economic conditions, would I buy that same property today at its current market value?”
Topgrading can be a humbling experience. You need to evaluate the maintenance necessary to bring the property current. Does it need a new roof? Does it need kitchen and bathroom upgrades? Then decide if those upgrades are worth it. Consider the age of the property. Look at the comps in the area. Look at the overall geographic area and that specific part of town. Weigh the decision to hold or sell as you would any other asset. If there are no major maintenance items or upgrades required and you have a steady and responsible tenant in place, you may want to hold onto the property and re-evaluate it again in another year. Take the emotion out of the decision, and simply decide to hold or sell. Just as with any stock in your investment portfolio that may not be as attractive as it once was, decide if you may want to sell one of your properties. Reach out to Paul and his team for help topgrading your portfolio.
Purchasing Property After Divorce
Divorce is never fun. It is a difficult time for all parties involved, and the last thing you want to worry about is how to afford two houses now. Divorcing couples should not have to live together because of financial constraints. Work with a trusted lender/advisor who has many creative loan product options to choose from. This can help you get through those trying times with a little less anxiety. It will all be okay!
Who Owns Your New Loan?
When you take out a loan, your payments go to a lockbox, or servicing company. The mortgage company who originates your loan is most likely not the same company who will own and/or service your loan. Typically the notes are held by governmental agencies (Fannie Mae, Freddie Mac, etc.). Then, those agencies hire mortgage servicing companies to service the loans. Servicing a loan includes managing the following: payments, late fees, and collection efforts, tracking HOA payments, customer service, escrow payments, investor reporting, dealing with regulators, etc. Servicing a loan is a complex process. As such, the mortgage servicing process is monitored by regulators. Regulatory agencies oversee the rules of loan servicing processes to ensure that their actions are in compliance with all federal and state rules. Governmental agencies and financial institutions bundle the mortgages together and sell them to investors, who earn a portion of the principal and interest payments. Collectors contact people who haven’t made their payments. They set up payment plans and advise consumers of their payment options. If all options have been exhausted, the collectors may be forced to begin the foreclosure process.
Popular Home Trends for 2024
Trends come and go. That statement holds true in real estate and more specifically, in homes as well. Following are some of the most popular home trends that you may want to consider for your own home this year:
- Pot fillers – fixtures over your stovetop, so you don’t have to carry a heavy pot of water from the sink all the way over to the stove
- Cold plunge pools – may be good for health, and they can certainly wake you up in the mornings
- Lighted mirrors – they also may have a heating element and/or bluetooth
- Wallpaper – there are some very modern and interesting wallpaper ideas for accent walls
- Bold color choices such as bright pinks, playful aquas, rich browns, and neutrals (buttery and blush tones). You may want to paint your home with bright colors while you live there, but be cautious when you go to sell your home. Neutral tones are typically the most appealing to potential buyers, and they allow the features of the home to stand out.
Maybe you’d like to incorporate some of these trends into your home this year.
We’re to Help!
To discuss property management, property investment, property maintenance, selling, buying, the local real estate market, and all things real estate related, contact the expert team of trusted advisors at Jamison Realty at (704) 846-3663. To learn more about property investment in particular, purchase Paul’s book, Opportunity is Knocking, which is chock full of information and tips to get every new investor well on their way to success.
We will be with you every step of the way. Also, listen to Your Real Estate Today radio show every Saturday afternoon on WBT for fun and interesting real estate information and special guests!