Rigoberto Real Estate Solutions
Things That Tenants Need To Keep In Mind Regarding Rental Troubles
The best thing about renting is that you don’t need to worry much about the upkeep. Whether your dishwasher stops working, sewerage system chokes or roof starts leaking, you will not hesitate to call your landlord to get the issue fixed. But, you really need to know what your landlord is responsible for and what maintenance cost needs to be paid by you.
Having that said, a few most common issues are worth mentioning here. You have to make sure that you get these issues fixed as soon as you can.
Mold and water damage
If there is water damage or mold anywhere in the property you have rented, you are going to rate it as one of the nastiest discoveries. Molds are usually not hazardous for health but there are some types of it that can be allergic for some people.
Now, it is not easy for the tenants to know if the mold present in their home is dangerous; so it is recommended that you contact your landlord to get the mold removed.
It is worth mentioning here that no federal law is in place to decide about the limit of mold in the houses. However, some states and cities have set guidelines in this regard. Even if there are specific guidelines, the responsibility of dealing with the mold usually falls on the shoulders of landlords.
While asking for the removal of mold, make sure that you are asking for the removal of cause of the mold. Typically, the reasons for mold include leaking roof, deteriorating plumbing, or a basement that’s not watertight. Water damage needs to be addressed if you want to prevent mold from coming back.
There are some appliances that the tenants get already installed by their landlords in the rentals. These are the appliances which the landlords are responsible for. You have to make sure that the appliances are taken good care of before you enter the home. It is the landlord’s responsibility to ensure preventative maintenance of the appliances they install in the rentals.
However, landlords are not responsible for the appliances that you bring to the rentals. These are the appliances whose maintenance and repair costs come onto your shoulders.
A general rule is that the landlords have to ensure safe and hygienic environment of the rentals. This responsibility also includes pest control but there are some grey areas in this scenario. Whether or not your landlord is responsible for pest control mainly depends upon the way you live in the rental and the types of pests that need to be controlled. For instance, there are some states where it is mandatory for the landlords to ensure proper removal of bedbugs. And there are some states where total pest control falls on the shoulders of landlords.
How to Get a Loan for Flipping a House
In U.S. house flipping is commonly used. Since 2007, it has been at its fastest level. Limited housing supply is chipping in the house flippers to earn more profit. By house flipping, you can much more profit as compared to the conventional buying and selling of the houses.
When you buy a house for yourself to live in or you sell your own home you need to cover renovation expenses, taxes payments, insurance expenses, and utility expenses. It costs a lot. But you can cut down many of them in flipping the house. Short term capital gains tax rates 10% - 40% will cut down on the flipping of the house, depending upon your income tax bracket.
To crack a deal with lenders is the toughest thing. Most lenders would not agree to work with inexperienced flippers. So, getting a loan for house flipping would be tough for everyone, if he or she does not possess a good amount to invest. If you get to qualify for the loan with some down payment, but still you will have to pay more on the borrowed finance for the flipping.
If you are not a cash buyer and you do not have enough money to invest then you can get a loan by these following means mentioned below:
Hard Money Loans
On the word Hard Money, experts have some disagreements and different opinions. Some say it is much more expensive than conventional financing so it has the name Hard Money. Some say it finances the houses that are tough for traditional lenders to lend money. Some say the Hard Money determines the collateral for the loan. When you get the hard money loan, the general condition is less than 1 year and the interest rate of 12% - 18%, + 2 – 5 points. A point means it is equal to one percent of the loan amount. For example, if you would borrow the loan amount of $ 112,000, and the lender in case charge 2 points. It means you have to pay 2% of $112,000. The one gentle thing about the hard money is you are able to pay points until the home sells. Not like in the traditional mortgage. Hard money is easy to obtain.
Hard Money vs. Conventional Loans
Lucas Machado who is the president of the House Hero. A group of the real estate investors that flips South Florida houses and finances hard money loans. He described hard money loans are easy as compared to the traditional loans.
Lenders are not stuck to the guidelines in borrowing the hard money if the condition of the house is poor. Hard money lenders are able to decide, to make the loan amount by evaluating the strength and other aspects of the deal and the reliability of the home flipper. If the purchase and repair cost look good as compared to the resale value, the home flipper seems to be a trustable person, a hard money lender will make the loan.
How to Find a Lender
You can find a lender online. Trustworthy lenders are there in the world and also available on the internet. Lima One Capital association is working with new flippers. It lends hard money up to 90% of the loan of the cost or up to 75% of loan to the ARV. Fees and interest rates might be reduced with the flipping experience of the borrower.
You may get a loan from any person who is not a bank. Many people save their money and seek the opportunity to lend their money. They also most of the time operates like the Hard Money Loan. You can easily borrow loan from the private lenders. This is the easiest way as they are always ready to negotiate. In today’s time, private lenders are available online. They are trustworthy too.