Successful Short Sales in Arlington Heights and Streamwood: Acronyms You Need to Know

Knowledge is power. That’s true whether you’re running a Fortune 500 Company or investing in short sales in Arlington Heights and Streamwood. To increase your level of knowledge and success when investing in short sales in Arlington Heights and Streamwood, here are the definitions and important information for four acronyms: BPO: This stands for Broker Price Opinion A BPO is, essentially, the same thing as an appraisal. In a short sale transaction, the lender hires a broker to appraise a home. The broker assesses the house both inside and out to determine its current market value. If a BPO has not been ordered by the lender or if you cannot find out what the value of that BPO is, you may be at a big disadvantage when trying to submit a short sale package. The closer your short sale offer is to the BPO, the better chance you have of the short sale transaction going through. NOD: This stands for Notice of Default This is the first official stage in the foreclosure process. The lender has a right to file the Notice of Default after the very first late payment, but the NOD is not usually filed until 60 to 90 days after a late or missed mortgage payment. In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. This is a crucial step in purchasing a short sale, because if the lender has not issued an NOD, they won't consider your short sale offer. NOT: This stands for Notice of Trustee’s sale The NOT is a recorded notice that a trustee’s sale has been scheduled. That means the clock has really started ticking! If all late payments, fees, and penalties aren’t paid up, the property will be auctioned off to the highest bidder. The minimum amount is usually whatever the lender needs to pay off the first loan and other fees. The buyer who wins the auction gets the property as-is. This includes all liens, whether or not the lien has been recorded. Title insurance is generally not available for up to two years. This can be a significant risk for a buyer. Many properties don’t sell at auction so they go to the lender and become REOs or Bank Owned Properties… REO: This stands for Real Estate Owned by the lender An REO, also known as a Bank Owned Property, is a property that goes back to the lender after an unsuccessful foreclosure auction. So when you hear the term REO, it means that the lender now owns the home. Usually, the lender asks a real estate agent to list the property for sale. The initial listing price is often high. Hire a real estate agent who is knowledgeable about short sales to negotiate the price for you and help you navigate the complicated short sale process through to a successful closing. If you’re interested in investing in real estate or short sales in Arlington Heights, Streamwood, I can help. Give me a call today at 847-670-1060 or 630-529-0022 or email me at dave@davebulava.com for more information. Keyword/Tag: short sales in Arlington Heights, Streamwood Links: Broker Price Opinion http://www.investopedia.com/terms/b/broker_price_opinion.asp#axzz1hrv9qXP7 Notice of Default http://www.nolo.com/dictionary/notice-of-default-term.html Real Estate Owned Link to REOs you’re promoting or link to: http://www.investopedia.com/terms/r/realestateowned.asp#axzz1hrv9qXP7

Safety Tips for Using the Fireplace in Your Streamwood Home

Is there anything cozier than enjoying a warm fire inside during the winter months? There is something primal about watching the flames of a contained fire that reaches back into our ancient human past. If you’re lucky enough to have a fireplace or woodstove in your Streamwood home, please follow these precautions:

• Call in a chimney sweep. Every year, you should have your chimney cleaned to remove creosote buildup. This keeps air flow unobstructed and prevents a chimney fire, which would be devastating to your Streamwood home. A professional chimney sweep should also check for cracks in the flue liner and proper functioning of the damper.
• Inspect your chimney cap. The chimney cap keeps the rain and snow out of your flue. It also prevents birds or other animals from entering the flue. The sides of the chimney cap are wire mesh, which also needs to be kept clear of creosote. Otherwise air flow will be hampered and smoke will enter your home instead of being properly drawn up the chimney.
• Burn only dry, seasoned wood. Wood that has not been aged long enough will sputter, smolder and smoke, causing excess build up of creosote.
• Burn only untreated wood. Do not burn treated wood, plastic or other debris in your fireplace or woodstove. These give off toxic fumes you do not want inside your home.
• Wait until ashes are cool before removing them. If you try to clean out the fireplace or stove while there are live coals or embers in the ashes, they will give off smoke into your home while in the ash bucket. They could also result in burns, if dropped on the floor.
• Install a carbon monoxide detector. Carbon monoxide is a deadly gas produced during incomplete combustion. The only way to know if it is in your home is by using a detector.
• Keep the damper closed when not burning a fire. This will prevent the warm air from going up the chimney.

If you’re looking for a Streamwood home with a fireplace, I can help you buy one. Give me a call today at 630-529-0022 or email me at dave@davebulava.com. Keyword/tag: Streamwood home Links Creosote http://www.hearth.com/econtent/index.php/articles/creosote_from_wood_burning_causes_and_solutions Damper http://www.ehow.com/video_4997719_do-open-fireplace-damper_.html Carbon monoxide http://www.epa.gov/iaq/co.html

How to Install a Programmable Thermostat in Your Arlington Heights Home

Here is a painless way to reduce your energy use and your heating bill: Set your thermostat to go down 5 to 10 degrees while you’re gone all day and while you sleep at night. This could reduce your heating bill by 15% without compromising comfort. Programmable thermostats cost anywhere from $30 to $150, so they quickly pay for themselves. By programming your thermostat to return to your comfort level before you arrive home or get up in the morning, your Arlington Heights home will be just as comfortable as what you’re used to, and you’ll reduce your carbon footprint. Here is how easy it is to install a programmable thermostat:

• Turn off the circuit breaker for the thermostat. Since you will be handling wiring, you must cut off the electricity going to the thermostat first of all. If your Arlington Heights home has electric baseboard heat, don’t do this update yourself--the wiring carries higher voltages and should only be worked on by a qualified electrician.
• Remove the old thermostat. Older thermostats contain mercury, so handle it carefully and do not throw it into the trash. Check with local recycling centers or waste handlers to learn how to safely dispose of mercury.
• Tape wires to the wall. You don’t want the wires to fall inside the wall. Note where they were attached to the old thermostat and label them accordingly.
• Mount new wall plate. Follow the instructions that came with the new unit to mount the plate over the area of the old base.
• Connect new thermostat to wiring. Again, follow the instructions included with your new unit.
• Mount the new thermostat onto the new base.
• Turn the circuit breaker back on.
• Program the thermostat following manufacturer’s instructions. Digital devices can be hard to program, so hang onto those instructions and keep them where you can find them.

Now your Arlington Heights home can be greener, more economical and more comfortable. Want to buy a home that’s green, energy-efficient and comfortable? I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com. Keyword/tag: Arlington Heights home Links Carbon footprint http://www.nature.org/greenliving/carboncalculator/index.htm Qualified electrician http://www.electriciansnetworks.com/ Mercury http://www.coshnetwork.org/node/360

Short Sales in Real Estate Demystified

Short Sales in Real Estate Demystified If you're a potential buyer of real estate, when scanning the listings of homes for sale, you may see references to “short sales.” You may hear vague warnings about avoiding short sales from some people, while others tout the advantages. So who is right? Well, it depends…   Short Sales Defined First, what is a short sale? A short sale is a situation in which the current market price of a home would not, in fact, cover the amount the homeowner owes on the mortgage. Yes, that's what people mean when they say they are “underwater” – they owe more on their home than it is worth. Since the mortgage can't be paid off by the sale of the house, short sales become an option, albeit a complicated one. The seller and the bank (or banks, as is sometimes the case if there are multiple mortgages on the house) become, if the bank agrees, essentially co-sellers of the house. Any offers considered by the seller have to be approved by mortgage holder(s). Seller Short Sale Advantages Short sales can be a win-win situation for the seller and the mortgage company. The seller is relieved from his debt without the greater stigma of foreclosure attached to his credit standing. The mortgage company often gets more money than it would in a foreclosure auction, and without the time and expense of the foreclosure process. Buyer Short Sale Advantages For potential buyers, short sales can have some advantages. The biggest possible advantage is a better price. Keep in mind though that short sales are seldom amazing deals. The bank will usually do an analysis on comparable properties in the neighborhood, and will likely turn away any offers that fail to come in that range. What you are more likely to get with a short sale purchase is a home that has been cared for and recently lived in. Short sales are still officially owned by the seller, not the bank (as in foreclosures), and so someone is more likely to be living there, mowing the lawn, cleaning the kitchen and making repairs. Short Sale Buyer Complications The bad news on short sales is time and administrative detail. With the companies holding the lien having final say on the process, their review can delay acceptance of short sale offers, sometimes for months. And, of course, if there are multiple lien holders, the time can increase dramatically. A short sale can take three months – not much longer than a standard closing – but they can also take six months or longer. If that level of timing uncertainty doesn't work for you, you might want to consider other options in your quest for real estate. Whether you’re considering buying or selling a short sale, I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com for more information. Links: Foreclosure auction http://real-estate.lawyers.com/residential-real-estate/Buying-Foreclosed-Property.html Short sale buyer http://www.ehow.com/how_2186920_buy-_short-sale_-house.html Delay acceptance of short sale offers http://www.heraldtribune.com/article/20100418/article/4181065    

Home Sharing: Is It For You?

Home Sharing: Is It For You? Across America, the decision to live with roommates in later years is becoming more common as the economy stagnates. According to the Census Bureau, from 2009 to 2010 the number of thirty-somethings living with non-family roommates rose from 10.6 million to 12 million, which is an increase of 13 percent. If you’re considering sharing a home with others, here are some of the benefits you could reap:

• Lower monthly payments: Whether through divorce, widowhood or empty nest syndrome, many people are left with too much house and way too much mortgage debt. One solution is to invite a compatible friend or two to move in and split that mortgage payment. It will also mean splitting the utility bills: win-win.
• Companionship: Sure, you have friends, but after hanging out with them, it can be a bit lonely to come home to an empty house late at night, if not downright scary. Most people enjoy sharing a meal rather than eating alone. And if you get sick, it’s really nice to know somebody will be around to check on you and take care of household basics until you get back on your feet.
• Shared responsibilities: This runs the gamut from cooking, cleaning, home maintenance, yard maintenance… you get the picture. Being the sole proprietor of your [city] home can be very demanding; it can be a real relief to share the chores and decision-making with others.
• Better health: Studies show that loneliness leads to higher rates of anxiety and depression. Even if you don’t feel lonely, psychologists say that having less interaction with others can raise stress hormones and blood pressure. These are measurable physical effects of social isolation.
• The chance to live in a nicer home or neighborhood. When you split the bills, you can afford a nicer place than when you’re on your own. (Remember Golden Girls?)

If you’re looking for the perfect home to share with friends, I can help! Contact me at 847-670-1060 or dave@davebulava.com. Links: Living with non-family roommates http://www.yesmagazine.org/happiness/the-roommate-revolution-why-living-alone-is-overrated?utm_source=sep11&utm_medium=yesemail&utm_campaign=Roommate Home maintenance Link to blog post titled “Fall Maintenance Checklist” Social isolation http://news.consumerreports.org/health/2010/08/health-risks-of-loneliness-social-isolation-the-unrecognized-killer.html  

Renters: Are You Ready to Buy Real Estate? Pros and Cons of Home Ownership

Renters: Are You Ready to Buy Real Estate? Pros and Cons of Home Ownership If you're sitting in your apartment right now thinking: I wish I could paint it, but my lease doesn't allow it, maybe it's time to talk to a real estate agent about purchasing a new home. Before you rush off to the store to look at paint samples or, more importantly, sign on the dotted line of any mortgages, consider the pros and cons of buying.   Pros

1. Financial Investment: Given the gloomy news on foreclosure rates across the country, it is easy to forget that buying [city] real estate is also a means of saving and investing. The money you pay in rent to your landlord goes to your landlord; the money you put toward a mortgage goes toward building equity in your home.
2. Pride of Ownership: By buying a home, you will be able to paint the interior walls any color, renovate to your heart's content, put nails in the walls and know that it is truly your territory. As a homeowner, you have a level of control over your environment that renters lack.
3. Putting Down Roots: Purchasing real estate is a commitment to a community, akin to staking a flag in the ground. You're not just passing through, if you own your own home. Most mortgages are 15 to 30 years. Certainly, you can sell before that time is up, but with closing and moving costs and an uncertain market, the era of flipping houses for fun and profit is at a close. Buying your first home may involve considerations on other long-term decisions such as where you want to raise your children.

Cons

1. Additional Expenses: Even if the mortgage you secure on your home is less than your current rent, home ownership comes with a lot of extra bills. You may not have considered the cost of yearly real estate taxes, insurance, repairs, and maintenance. If your water heater dies as a renter, your landlord is required to replace it. As a homeowner, you're looking at the time and expense of getting it replaced yourself.
2. Less Flexibility: Rental leases often include provisions for leaving before the termination of the lease. So, if you've decided to accept a job offer in Paris, while you might lose some money in security deposits, you can sever your connection relatively easily. That's not the case with a mortgage. You are responsible for the payment on the mortgage whether you live in your home, rent it out while you're in Paris or leave it vacant. Buying [city] real estate is a serious, long-term commitment.
3. Less Time: With most apartments, someone else is raking the leaves, shoveling the snow, mowing the lawn, and replacing that broken water heater. As a homeowner, those duties would fall to you or someone you hire to tend to those issues.

Whether you’re ready to stop renting and buy a home or you need more information before taking the plunge, I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com. Links: Commitment to a community http://www.ibtimes.com/articles/161307/20110611/homeownership-and-community-involvement.htm Flipping houses http://realestate.msn.com/article.aspx?cp-documentid=13107725 Home ownership comes with a lot of extra billshttp://www.kiplinger.com/features/archives/2007/05/homecost.html          

How to Buy Real Estate When You Can't Get a Loan

How to Buy Real Estate When You Can't Get a Loan Just because you are not in the position to get a home loan right now doesn't mean you're out of the housing market. Here are three ways to obtain real estate now without immediately getting a loan:     1. Option to Purchase An option to purchase is just that – you pay an option fee for the right to purchase real estate at a later date (usually 1 to 3 years) at a predetermined price. There is no rental agreement with this option. Option to Purchase is a good alternative if you are expecting to be able to qualify for a home loan at a future date. You are not obligated to exercise the option if you change your mind; however, the option fee is not usually refundable. One of the benefits of an option to purchase is that you may sell the option to someone else if you choose. This is a way to recoup your option money should you change your mind or if you are unable to purchase. 2. Lease with Option to Purchase This is also called a lease option. It’s generally for a term of 1 to 3 years and includes a rental agreement. As with the option to purchase, you pay an option fee for the right to purchase the real estate at a later date. In most cases, the option money is not refundable and is generally not applied to the purchase price. During the option period no one else can buy the home and you cannot assign the option to someone else. You must exercise your right to purchase before the end of the term or the option is lost. With a lease option, a portion of your monthly rent goes toward the purchase of the home. The rent is usually higher than a normal rental for this reason. You are not obligated to exercise the option if you change your mind. 3. Lease Purchase With a lease purchase, you ARE obligated to buy the home so make sure this is what you want to do before signing a Lease Purchase Agreement. You are generally going to pay market price or above for the home. You pay the seller an option fee for the right to later purchase the property. The option money may be substantial. The option fee may be used toward the down payment, but this must be negotiated prior to signing the agreement. During the term of the option, which is usually about 1 to 3 years, you agree to lease the property from the seller for a predetermined rental amount, at which time you apply for bank financing and pay the seller in full. Just like the lease option, a predetermined portion of the rent is commonly applied to the purchase price. If you fail to fulfill the Lease Purchase Agreement, you will lose all the money you have paid, plus the seller can take you to court to get the balance of the agreement. With all options, I highly recommend the use of a real estate agent as well as a real estate attorney. With a lease option or lease purchase, you want to do all the things you would do in a traditional sale. This includes all typical inspections and definitely a title search to make sure the home has no liens or encumbrances. For more information on how an option works or if it is right for you, give me a call at 847-670-1060 or email me at dave@davebulava.com. Links: Option to Purchase: http://www.nupplegal.com/optopur.html Lease Option: http://en.wikipedia.org/wiki/Lease-option Lease Purchase: http://homebuying.about.com/od/financingadvice/qt/091007_leaseopt.htm

Get a Deal on Luxury Real Estate

Get a Deal on Luxury Real Estate In today’s precarious job market, many luxury homeowners are finding they can’t afford their massive, custom-designed properties any longer. As the once rich are having to quickly sell or abandon their real estate, you might be able to snag a good deal on a distressed luxury home. There are many horror stories associated with short sales and foreclosures, but if you do your research, are patient and can act quickly, you might be able to purchase the home of your dreams. If you want to take advantage of this sour market, then consider the following guidelines — and happy house hunting!

• Find an agent who has experience with distressed real estate. Interview real estate agents to find out their history of dealing with foreclosures and short sales.
• Research comparables. Investigate to make sure it’s actually a good deal by looking at other luxury homes that have sold in the area. Your agent can give you valuable information on comparables.
• Be patient. It’s easy to get anxious when it comes to making such a large purchase, but remember that these properties are in turmoil — which can take some time to resolve.
• Hire a home inspector. If you’re going to be investing big bucks, pay a home inspector up front to check out the home. Just because it’s a luxury property doesn’t mean that it hasn’t been neglected for the past couple of years. You’ll want to know what kind of damage and repairs you’ll be dealing with.
• Make an offer quickly. Other potential buyers and real estate investors will be keeping an eye out for enticing properties too, so be ready for competition.
• Have your finances together. Pay as much as possible in cash. It will be more enticing to the lender, who actually makes the final decision on a short sale or foreclosure.

If you want to purchase luxury real estate at a great price, consider distressed properties going to short sale or foreclosure. Call me at 847-670-1060 or email me at dave@davebulava.com, if you’re ready to start looking or would like more information. Links: Interview real estate agents http://homebuying.about.com/od/realestateagents/tp/Agentinterview.htm Short sales http://www.usatoday.com/money/economy/housing/story/2011-08-28/Number-of-short-sales-on-the-rise/50165284/1 Foreclosures http://www.ehow.com/how_111013_buy-foreclosed-home.html    

Find a Real Estate Agent with Social Media Experience

Find a Real Estate Agent with Social Media Experience Flyers, open houses and stagnant real estate websites don’t cut it anymore. Property buyers and sellers are more technologically savvy than they’ve ever been, and they rely on social media’s instant communication forums for information, advice, suggestions and reviews to guide their decision-making processes. Real estate agents’ roles within the industry have evolved — they’re no longer just gatekeepers. Now, they need to be interpreters between their clients and the constant stream of social media information. To determine if a real estate agent is socially savvy online, ask the following questions:

• Strategy – Before signing a listing agreement with an agent, find out what marketing strategies he or she usually implements. Is he or she using any social media platforms to promote their properties or gather feedback from buyers?
• Following – Ask about how many people and organizations he or she reaches on a regular basis. The number of Facebook “Likes” or Twitter followers is a direct correlation to how many people could be exposed to your home for sale.
• Activity – Ask how often he or she updates and posts on social media sites. Having 2,000 followers means nothing if the agent isn’t active on the social media site. A constant flow of information and communication is essential to effectively promote a property. If he or she just has a stagnant Facebook page with a biography on it, that doesn’t benefit you in any way.

From sending out tweets about houses for sale to posting new listings on Facebook walls, social media platforms are one of the quickest and most targeted ways to reach potential buyers. To achieve your real estate goals, seek out a real estate agent who uses social media as a tool to build loyal followers and promote properties. If you’re looking for a real estate agent who successfully uses social media as a marketing tool, call me at 847-670-1060 or email me at dave@davebulava.com. Links: Listing agreement http://www.realtor.com/Basics/Sell/ListAdvert/Agreement.asp Home for sale http://homebuying.about.com/od/sellingahouse/ht/homeprep.htm

Buying a Home for Sale by Owner: 3 Reasons You Need an Agent

Buying a Home for Sale by Owner: 3 Reasons You Need an Agent You might be scratching your head right now wondering why in the world you would want to hire a real estate agent when you’re buying a home for sale by owner (FSBO). You may even have the misconception that real estate agents can't work for you if you want to buy a FSBO. That's not true. Real estate agents can represent your best interests when purchasing FSBOs, just like they do when purchasing homes listed with a real estate agency. You get the same service from your agent whether he or she is helping you buy a traditional home for sale or a FSBO. Here are three benefits to working with a real estate agent when buying a FSBO:   1. It could save you thousands of dollars. Most people consider buying a FSBO because they fall in love with the house, not because it’s a great price. In fact, the majority of FSBOs are priced at or above the actual market value of the home. Why is this? Home owners are novices at pricing homes, their information is typically out of date, they don’t have access to the sales prices of all homes in the area, and they don’t have the technology needed to accurately process the data. When you hire an agent, you gain a considerable advantage over the seller when negotiating the price. Agents are experienced negotiators, and they have the sales statistics to support their requests. Some proponents of selling your home for sale by owner argue that you’ll pay more because you have to pay the agent’s commission. In this buyer’s market, all homes including FSBOs take longer to sell. If a homeowner is serious about selling, and the home has been on the market for a while, the seller more often than not agrees to pay all of part of the real estate agent’s commission. 2. It’ll save your sanity. Sellers have an emotional and personal attachment to their homes. They frequently take it personally when buyers want to negotiate. Without an agent, it's you and the seller pitted against each other. Emotions often flare, which could prevent you from getting the best deal possible or could cause you to lose the opportunity to buy the house altogether. 3. All legal issues and paperwork will be handled by the agent. The process of buying a house is complex. Your agent will guide you through the entire process including the negotiation, inspection, re-negotiation (based on findings during the inspection) and closing. He or she also will make sure all legal issues are considered and handled appropriately, and all paperwork required to buy the home is properly completed. If you're interested in buying a home, whether or not it's a FSBO, I'd like to help you. Call me today at 847-670-1060 or email me at dave@davebulava.com. Links: Buying a FSBO http://online.wsj.com/article/SB126279945872118145.html Agent’s commission http://homebuying.about.com/od/realestateagents/a/Whopaysagents.htm Paperwork required to buy the home http://www.bankrate.com/finance/mortgages/chapter-4-paperwork-and-fees.aspx

Home Improvement: Add a Bath

Home Improvement: Add a Bath Adding a bathroom to your [city] home may not only improve the quality of your life, it may also increase the value of your home. Although in today’s market you’re not guaranteed to get back the cost of adding a bath, in the long term, it typically boosts your home’s value by about 20 percent, according to the National Association of Home Builders.     How many bathrooms does a home need? Most home buyers want an equal number of bedrooms and bathrooms. So, if you have fewer bathrooms than bedrooms, you’ll get a good return on your investment by adding a bath. Buyers also prefer at least one bathroom on each floor of a house. To get a good return on your investment, add a bath to the second floor of a home without one. Have a finished basement? Add a bath to that level to increase your home’s value. If most homes in your neighborhood have a huge master bath, and your house has none, adding one could boost the value of your home. On the other hand, if the norm in your neighborhood is one and a half baths, adding a third or fourth bathroom won’t add much to your home’s value. What does a bathroom addition cost? If you have to build an addition on to your home in order to add a bathroom, you’re most likely looking at a minimum of $200 per square foot. By using existing house space, such as a walk-in closet or spare room, you’ll pay about $100 per square foot. Construction costs vary depending on the region in which you live; the best way to determine how much a new bath will cost is to contact several local general contractors and ask about pricing. In addition to construction costs, be sure to include the cost for bathroom flooring and fixtures in your bathroom budget. The costs for flooring and fixtures can add up quickly, so choose wisely. If you’d like the names and numbers of general contractors I recommend, give me a call today at 847-670-1060 or email me at dave@davebulava.com. Or, if you’d rather move than remodel, I can help you find a home with the number of bathrooms you prefer. Links: National Association of Home Builders http://www.nahb.com/ Bathroom addition http://www.remodelormove.com/content/article/bathroom_addition.cfm Bathroom flooring http://www.bathroom-remodeling-hints.com/Bathroom_Flooring.html  

Build Your Nest Egg by Investing in Real Estate

Build Your Nest Egg by Investing in Real Estate Investing in real estate is not a get-rich-quick scheme by any means. Late night infomercials claim to show you how to retire in months after trying their methods for investing in real estate. Unfortunately, the only ones getting rich are them. But, you can build for your future by investing in the right real estate in the right way. Here are five tips to give you some guidance on how to buy that second, third or even fourth piece of real estate as an investment:  

1. Shop smart. Look for homes or land in desirable neighborhoods or in up-and-coming neighborhoods.
2. Keep your property. You should not buy real estate for the purpose of flipping it. That was a short-lived fad that ended up costing many people thousands of dollars and more. Instead, buy real estate with the intent of holding on to it.
3. Buy rental property. Rental property can be a great way to add to your income and give you the means to do things you might not have been able to do on your current income. It is also a great way to set your children up for the future by giving them their first home. You don't want to be a slumlord so be prepared to invest some time and money in the upkeep of your real estate.
4. Exchange properties without paying capital gains. You don't have to fear the tax man if you decide you want to get rid of one property for another. By using a 1031 exchange, you can sell one property and buy another without paying taxes on the first one. This is not something you want to do as a "For Sale By Owner;" you need to use a real estate professional who is skilled in the 1031 exchange.
5. Enjoy your free time. You don't have to give up all your free time to manage your investment property. There are professional property management companies that can handle some or all of the day-to-day tasks for you. There is a fee for their services but it is often well worth the cost.

For more information on buying investment properties or 1031 exchanges, contact me at 847-670-1060 or dave@davebulava.com. Links: Flipping http://home.howstuffworks.com/real-estate/house-flipping.htm 1031 Exchange http://www.1031.org/about1031/faq.htm Property management http://www.nolo.com/legal-encyclopedia/landlord-hire-property-management-company-29885.html

Five Tips to Make Your Home’s Bathroom Greener

Five Tips to Make Your Home’s Bathroom Greener If you’re looking for ways to make your home’s bathroom more eco-friendly, here are some tips on saving water and more. 1. Fix the toilet. A leaky toilet wastes unimaginable amounts of precious water. In addition, toilets made before 1990 use an average of 3.5 gallons with every flush. (Low-flow models use as little as .8 gallons.) But you don’t have to replace your toilet to save. To retrofit an old toilet, opt for this free fix and save ½ gallon per flush: Fill an empty 2-liter bottle three-quarters full with sand or stones; fill the rest with water and place it in the tank as far from the valve as possible. 2. Replace or upgrade your old faucet. Faucets account for more than 15 percent of indoor household water use, so reducing their flow (by up to 30 percent) with WaterSense-labeled products will amount to huge savings. If you don’t want to replace your old faucets, you can achieve the same water savings with very inexpensive faucet aerators. 3. Turn down the water heater. Hot water heaters use nearly 20 percent of the average [city] home’s energy. Most manufacturers preset hot water heaters at 140 degrees. Reducing water temperature by 10 degrees saves 3 to 5 percent in energy costs. In most cases 120 degrees is perfectly comfortable. 4. Don’t use commercial drain cleaners. Common drain cleaners contain lye, hydrochloric acid and trichloroethane—toxins that corrode the plumbing in your home’s bathroom and linger in the water supply. For a safe alternative, use this easy method: Pour ¼ cup baking soda down the drain followed by ½ cup vinegar. Cover tightly until the bubbling stops and flush with a gallon of boiling water. Repeat if necessary. 5. Use toilet paper made from recycled paper. According to Greenpeace, Americans could save more than 400,000 trees if each family bought a roll of recycled toilet paper—just once. Want to buy a home that already has a green bathroom? I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com Links: Saving water http://epa.gov/watersense/water_efficiency/index.html   WaterSense products http://epa.gov/watersense/products/index.html   Faucet aerators http://en.wikipedia.org/wiki/Faucet_aerator  

4 Home Remodeling Myths Debunked

4 Home Remodeling Myths Debunked Home improvement shows tell you that you can add 20 to 40 thousand dollars to the value of your [city] home by doing a simple remodel on virtually any room or outdoor space. While you can get a return on your investment for most remodeling projects, the increase to your home value is not always as high as the home improvement shows claim. Myth #1: If you put 20 thousand dollars into a kitchen remodel, your home’s value will increase by 40 thousand dollars. Fact: The average kitchen remodel costs 40 thousand dollars. This is on a mid-range remodel, not a high-end remodel. The average return you can expect is 80 to 95 percent or about 36 thousand dollars on a 40 thousand dollar remodel. Myth #2: Updating a bathroom can add as much as 20 thousand dollars to your bottom line. Fact: The average bathroom remodel will net about a 70 percent return. To gain the type of return some of the home improvement shows claim, you would need to add another bathroom to your home. Myth #3: Hardwood floors return 100 percent of the money you invest in them. Fact: Hardwood will get you a big bang for your buck, but not every buyer wants the upkeep associated with hardwood. Children and pets can be tough on wood floors. Myth #4: Adding an outdoor space will be counted as living space when you resell. Fact: Although outdoor space is wonderful, it is not considered living space by appraisers. According to the American National Standards Institute (ANSI), the living space or square footage that counts in a home appraisal is the space above grade (ground) that is finished (has walls, floors, and ceilings), heated from the same source and all connected. For help on what to do to improve the resale value of your home, give me a call at 847-670-1060 or email me at dave@davebulava.com. Links: Average kitchen remodel http://cmvanderlinden.hubpages.com/hub/How-To-Save-Money-on-a-Kitchen-Remodel Living space or square footage http://www.propex.com/C_SC_calcsf2.htm Home appraisal http://homebuying.about.com/cs/appraisals/a/real_estate.htm

3 Tips to Get Short Sale Offers on Your Home Accepted by Your Lender

3 Tips to Get Short Sale Offers on Your Home Accepted by Your Lender When a buyer makes a short sale offer on your home, it’s impossible to know for sure if the offer will be accepted by the lender. Even when you’ve negotiated the offer with the buyer and come to an agreement that meets both of your needs, there’s still no guarantee that the lender will say yes to the short sale.   Here are three tips to help get short sale offers on your home accepted by the lender: 1. Convince the lender that you have a legitimate hardship. Submit a hardship letter, pay stubs, bank statements, monthly budget and profit and loss statementto demonstrate that you cannot make your monthly payments and have no disposable income. Here are examples of hardships to mention in your letter:

1. 1. lost your job
   2. reduced hours/pay at current job
   3. have to move more than 75 miles from home to get a new job
   4. death of a borrower
   5. divorce
   6. onset of a disabling illness

2. Negotiate with the buyer to exclude terms and contingencies that complicate the sale. Lenders do not like to accept short sales when they include time contingencies or when the short sale is contingent on the sale of another home. 3. Submit paperwork as a complete package. Ask your lender for a list of all documents needed. Fill out the paperwork and collect all other documents required. Make copies of everything. Put together a complete package, including all the documents your lender requested, and only then send the entire package to your lender. If the lender later tells you they can’t find a particular document, don’t waste your time arguing about it, just resend the information – it’s easy to do because you already have copies prepared! If you’d like more information on the possibility of selling your home as a short sale, give me a call today at 847-670-1060 or email me at dave@davebulava.com. Links: Short sale http://www.realtor.org/library/library/fg335 Hardship letter http://www.ehow.com/how_4691440_write-short-sale-hardship-letter.html Profit and loss statement http://www.investopedia.com/terms/p/plstatement.asp#axzz1ZNNKvKNG

Crack the Advertising Code of Homes for Sale

Crack the Advertising Code of Homes for Sale Real estate has a language of its own, and I don’t just mean phrases like closing costs, short sales and foreclosures. What I’m talking about are buzz words used to advertise homes for sale. When you understand the typical meaning of these code words, you’ll be better able to determine which homes for sale are worth looking at in person.

• Cozy: Look at this home if you don’t mind a much smaller than average home.
• Rustic: If you want a home in the country (or one that looks like it should be in the country), take a look at this one.
• Move in Ready: Usually means it’s vacant.
• Starter: It’s smaller and less expensive than average homes in the area. If you’re in the market for a starter home, this is the phrasing you want to look for.
• Needs TLC: It probably needs more than just a little work. If you don’t mind that, check it out for yourself to see how much work it really needs.
• Handyman’s Special – Needs more work than TLC, which probably means you’ll need to hire professional contractors to get at least some of the work done. If you like the home, have a home inspection to find all the problems and then negotiate for a good price.
• Investor Special: Best use of this property is to rent it out.
• Investment in Land: If there’s a house on the land, this means you’re probably wisest to tear down the home and rebuild.
• I’m Beautiful Inside: The interior is nice, but something about the exterior is unappealing. It could be something easy to fix like old siding and cracked concrete or something impossible to remedy like being on a busy street.
• Honey, Stop the Car: This is a must-see home, if it fits your budget and needs.

If you’re looking at homes for sale, let me help you crack the code. I’ll help you find a home you’ll love and use my negotiation skills to get it at a great price. Call me today at 847-670-1060 or email me at dave@davebulava.com for more information. Links: Hire professional contractors http://www.hiringacontractor.com/en/hipr/index.html Home inspection http://www.ashi.org/customers/faq.asp

4 Questions to Ask Before Lending Money to Your Child to Buy Real Estate

4 Questions to Ask Before Lending Money to Your Child to Buy Real Estate You’ve reviewed your finances and have decided you can afford to and want to help your child buy real estate. Is lending the money to your offspring your best option? Here are some questions to consider when making this decision.     1. Will you need the money later? If there’s a chance that you might need the money to live on at some point, lending the money to your child is a better option than giving it to them. You can always forgive part of the loan later on, if you find you don’t need the money to live on. 2. How much should you lend? Depending on your financial situation, you can lend part or all of the down payment or part or all of the purchase price of the real estate. If you have enough money to lend the entire mortgage amount, consult with your financial planner to determine if this is the best option for you. Lending the entire amount often offers you more interest than you’d get from a bank and gives your child an even lower interest rate than he or she would get with a traditional mortgage. It also allows your child to deduct the mortgage interest because the loan is secured by the property. 3. Who will receive the mortgage payments? Decide if you want to receive the monthly mortgage payments or if you’d prefer to have a third party service the mortgage. If you want to know more about employing a third party to draw up the mortgage contract and accept the monthly payments, look into companies that handle intra-family loans. 4. How much interest should you charge? As part of the loan agreement, you’ll want to charge an interest rate equal to the IRS-approved Applicable Federal Rates (AFRs). The AFR is the lowest interest rate you can charge without causing any unwanted tax complications. Work with your financial and legal experts to ensure the loan agreement is in the best interests of both you and your child. Let me help you find the real estate that meets the needs of you and your child - and get it at a great price! Call me today at 847-670-1060 or email me at Dave@DaveBulava.com. Links: Lend the money to your children http://www.credit.com/credit_information/loans/The-Best-Ways-to-Loan-Money-to-Friends-and-Family.jsp Intra-family loans http://www.nationalfamilymortgage.com/ Applicable Federal Rate http://www.irs.gov/app/picklist/list/federalRates.html

Should You Help Your Child Buy Real Estate?

With appealingly low home prices and historically low mortgage rates, you know this is an ideal time to buy real estate. What about your adult child who doesn’t have the down payment needed to buy his or her first home? Should you help him or her take advantage of this opportunity? Many parents are asking themselves this question. According to a survey done by the National Association of REALTORS®, 36% of first-time buyers received help with their down payment from family or friends – typically parents – in 2010. That was up 28% from 2009. If you’re considering this serious step, be honest with yourself in answering the following questions: Can you afford it? The first thing to ask yourself is whether you can afford it. Are you on track to reach your financial goals for retirement? If you are not, you cannot afford to help your child buy real estate. Additionally, some financial experts suggest that you should not tie up more than 3% to 5% of your assets in family loans. Are you prepared to lose the money? Your offspring may fully intend to repay you, but his or her ability to do so could change quickly in today’s financial environment. To reduce the possibility of your child falling behind on payments or defaulting, create a contingency plan. If the amount you’ve lent is small enough, you might decide to give it to them as a gift. If not, work out a schedule of repayment. For instance, you could reduce the monthly payment. Just make sure you get some type of payment on a regular basis, even if it's only symbolic. Will your other children be jealous? Your other children should know that you are providing this aid, whether you intend to also help them financially, and if not, why you made that decision. If helping one of your kids finance a home will cause a major rift in your family, you may not want to move forward with it. Can you do the deal and then back off? Helping your son or daughter buy real estate can be a positive for all of you. But you don’t want to be the type of parent who helps and then spends the next decade dictating how to decorate the home and dropping in to visit any time you please. If you’d like to find a home to purchase for your child, I can help. Give me a call today at 847-670-1060 or email me at dave@DaveBulava.com for additional information. Links: Historically low mortgage rates http://mortgage-x.com/trends.htm National Association of REALTORS® http://www.realtor.org/press_room/news_releases/2010/11/survey Financial goals for retirement http://www.principal.com/calculators/retire.htm

Help the Environment by Adding Green to Your Real Estate

Help the Environment by Adding Green to Your Real Estate Recently, environmentally friendly or “green” remodeling has become more and more popular. Nearly every day you see a TV show or online article giving tips on how to make your home and life more eco-friendly. The catch is that green building can sometimes be extremely expensive. And, in most areas there really aren’t enough buyers specifically looking for features like rain water catch basins and solar panels to make it worth your investment. However, there are some relatively inexpensive ways you can remodel your real estate that will benefit the environment and go easy on your wallet at the same time.  

• Refurbish what you can while remodeling. If it’s possible to refinish existing cabinets and woodwork instead of replacing them, you’ll save yourself tons of money. And, nothing says eco-friendly like re-using old, good quality materials instead of throwing them in a landfill.
• Pay for extra insulation. If you’re doing a major remodel or building from scratch, pay for insulation that exceeds the minimum code requirements. You’ll see an immediate reduction in utility bills and that can be a great selling feature in the future.
• Use sustainable and green materials. Low VOC paints and bamboo flooring are eco-friendly and still look great. You don’t have to sacrifice your overall vision in order to make your home more environmentally sound.
• Invest in new, energy-efficient appliances. Again, you’ll see an immediate reduction in your power bills. Besides, what buyer wouldn’t love brand new kitchen appliances and a modern, tankless water heater?
• Upgrade your windows. The biggest drain on the overall insulation of your home could be old, worn-out windows. By replacing them with new, energy-efficient ones, you’ll get immediate benefits that your potential buyers will also appreciate.

With smart planning and careful use of your money, you can remodel your home in ways that will help the environment, save you money and appeal to buyers when it’s time to sell. If you could use help adding some green to your real estate, call me at 847-670-1060 or email me at dave@DaveBulava.com for more information. Links: Refinish existing cabinets http://www.diynetwork.com/how-to/how-to-reface-and-refinish-kitchen-cabinets/index.html Energy-Efficient Appliances http://www.newhomesdirectory.com/Blog/post/2009/09/01/Benefits-Of-Energy-Efficient-Appliances.aspx Upgrade your windows http://www.efficientwindows.org/energycosts.cfm      

Disadvantages of Selling Your Home Without a Real Estate Agent

Disadvantages of Selling Your Home Without a Real Estate Agent Is it really that difficult to sell your home by yourself? It depends. Do you like to market, negotiate and fill out legal documents? If yes, you may prefer to sell your home without the help of a real estate agent. Before you make your decision, consider these three disadvantages of selling your home as a For Sale By Owner (FSBO):  

1. You may under-price or over-price your home. If you’ve overpriced your home, you won’t get many interested buyers. When you drop the price of your home a few weeks later, you’ll have missed the “new on the market” window of opportunity that brings in a lot of potential buyers. If you under-price your home, buyers will wonder what’s wrong with it, and if it sells, you’ll be leaving money on the table.
2. You have to pay to market and advertise your home. When you sell your own house, you’ll spend money on marketing and advertising costs including for sale signs, online ads, print ads in newspapers and real estate magazines, as well as the cost to be included in the MLS. When you hire a real estate agent, they pay to market and advertise your home.
3. You are responsible for all the legal paperwork needed to sell your home. This means you must know what paperwork is required by the state and how to fill it out correctly. If you fail to do this properly, it can delay the sale or even leave you open for a lawsuit down the line if something is wrong or missing.

If you determine that listing your home as a FSBO is not right for you right now, hire a real estate agent to sell your home for you. Although you’ll have to pay commission, it will save you time and effort (and maybe even money) in the long run. If you’ve decided to hire a real estate agent, I’d be honored to be interviewed for the job. Please give me a call me at 847-670-1060 or by email at dave@DaveBulava.com to schedule an interview. Links: Price your home http://realestate.msn.com/article.aspx?cp-documentid=13108482 Advertise your home http://homebuying.about.com/b/2007/10/03/how-to-advertise-your-house-for-sale.htm Legal paperwork needed to sell your home http://homeguides.sfgate.com/paperwork-need-sell-house-7296.html    

Light the Night to Sell Your Home Faster

Have you ever thought about what your home for sale looks like at night? You should, because potential buyers certainly do. Imagine a potential buyer driving by your home after sunset. What will they see - a beautifully lit walkway leading to a welcoming front door - or a house that’s dark and dreary? Many potential buyers want a home that looks lovely both day and night. Why do they care what it looks like in the dark? They entertain primarily at night, they frequently come home from a long day at work after dark, and they want the added level of security provided by a well-lit home. Here are some ideas to light the night to help your home sell faster:

• Add landscape lighting. Create a gentle moon-glow lighting effect on flowers, trees and other landscaping features. To do this, conceal the light source behind shrubs or other foliage. Unless the light fixture is the decorative element, you want it to disappear when the lights are on.
• Put in path or walkway lighting. This adds a measure of safety. For the best results, use light sparingly. When you place too many lights along walkways and borders, it creates an unattractive runway effect. Instead, use taller path- or spread-light fixtures to create pools of light that illuminate the walkway and the surrounding flowers, shrubs or trees.
• Improve security lighting. A well-lit home is more secure. Use spot lights and flood lights to spread light across a wide area and light up a work or play area. Place flood lights above garage doors, sheds and patios.
• Keep the outdoor and indoor lights on. While your home is on the market, leave the lights on during the evening hours. If you don’t get home until after dark, put the lights on a timer. You never know when a potential buyer will drive around the area at night checking things out, so be prepared.

Pathway lights, flood lights and accent lights aren’t overly expensive, and provide a dramatic effect. Choose “green” outdoor lighting options to keep your electric bills down. If you’re thinking of selling your home, and need help lighting the night, give me a call today at 847-670-1060 or email me at dave@DaveBulava.com. Links: Landscape lighting http://landscapelightingideas.org/ Security lighting http://blog.smarthome.com/2011/03/11/diy-project-add-security-lighting-to-your-home-it-will-help-keep-your-family-and-valuables-safe/ “Green” outdoor lighting http://www.getgreenliving.com/going-green-with-eco-friendly-outdoor-lighting/

Selling Your Home While Going Through A Divorce

Questions for Divorcing Couples Selling Their Home The housing downturn has a lot of divorcing couples struggling to decide what to do with their home. Especially when the house is the largest marital asset, the situation can easily become contentious and unclear. Here are five questions to ask yourself before deciding what to do with your shared property.

1. Does keeping your home make financial sense? Often, once a couple splits, neither party can afford the mortgage payment and maintenance of the house by themselves. If this is the case, selling is most likely your best option.
2. Could you manage to keep living together while separated? When going through a divorce, you may not be able to stand each other’s sight. It won’t work in every situation, but you might want to tough it out and continue sharing the house (just with different bedrooms) until the market rebounds and you can make a profit.
3. Are your emotions getting the better of you? Many people can’t help but develop a strong emotional attachment to a house. That’s certainly understandable, but it doesn’t always make the most monetary sense. It might help if you try viewing the house like any other asset. You’re unlikely to let emotion come into play regarding the yard tools and bedspreads; try to treat the house the same way.
4. How will you split the proceeds? You’ll want to make sure you have a plan in place to split the proceeds when the house does sell. If not, you could be thrown back into a huge argument instead of finally moving on with your life.
5. What if one of you won’t agree to a price? The negotiation process won’t go smoothly if it comes down to an argument between the two sellers. Therefore, you should have some sort of agreement as to your bottom-line price. Also, you’ll need to decide how you’ll handle counter offers.

If you need help determining if now is the best time to sell your home, call me at 847-670-1060 or email me at dave@davebulava.com. Links: Maintenance http://www.saveandconquer.com/?p=37 Emotional attachment http://www.isoldmyhouse.com/resource-guides/keep-emotions-in-check-when-selling-your-own-house/default.cfm Negotiation process http://www.biggerpockets.com/renewsblog/2010/03/24/7-tips-for-better-real-estate-negotiation/

Should You Buy or Build A Home

To Buy or Build a Home … That is the Question You want a new home, but you’re not sure whether it’s best to build a new one or buy an existing home. The first thing you should do is identify your priorities. Do you dream of a customized house built from the ground up, or is living near all the action in your ideal neighborhood most important to you? Before you make up your mind or put in an offer, take the time to prioritize the following:

• Location - Can you find land to build on in your desired location? If not, are you willing to consider a different area if it means you’ll get a house tailored to your specifications? If you’re extremely location focused, you might have to give up the idea of building your perfect house and concentrate on available homes in the area.
• Timeline - How flexible is your timeline? If you absolutely need to be moved into your new home on a certain date, don’t even think about building. Building a house always seems to extend past the estimated completion date. If your timeline isn’t flexible, it might be time to start looking at existing homes.
• Renovation - Are you willing to renovate an existing house? With property values staying consistently lower than the cost of new, custom construction, renovating an older house may get you a lot more bang for your buck. However, do your homework first to find out exactly what needs to be done and at what price because renovation costs can skyrocket if you run into unexpected problems.
• Communication - Do you want to deal with builder headaches? Sometimes, even the best contractors can be difficult to work with. You’ll need time to drop by the building site on a regular basis to make sure everything is going according to your plan.
• Resale Value - Are you likely to re-sell your new property in the relatively near future? If so, you might be better off buying an existing house. In new construction neighborhoods, most potential buyers will be thinking about building instead of buying.

Ultimately, you can get a lot of satisfaction from either choice — just make sure you know what you’re getting in to. If you need help deciding whether to build or buy your new home ,call me at 847-670-1060 or email me at dave@DaveBulava.com. Links: Location http://www.helium.com/items/1450941-understanding-the-importance-of-location-when-buying-real-estate Timeline http://www.repair-home.com/resources/home-building-timeline.html Contractors http://www.tipsonhomeandstyle.com/home/12-tips-for-working-with-contractors-during-a-home-renovation