Forget coffee and avocado toast — most people blow nearly 40% of their money in the same place | Business Insider Magazine.

• Housing accounts for about 37% of the average American's budget.
• The standard measure of housing affordability is 30% of pretax income.
• Grant Sabatier, a self-made millionaire and the founder of the Millennial Money blog, saved $25,000 in two years by further limiting his housing expenses.

There's one area where almost everyone in the US overspends, and — spoiler alert — it isn't coffee. It's not avocado toast either, for that matter.

The biggest chunk of the average American's budget goes toward housing, which accounts for about 37% of take-home pay. Many people spend even more.

In some circumstances, spending a lot on rent or a mortgage is unavoidable. But in many cases, making a few sacrifices on housing expenses today could lead to significant savings — and a far more comfortable future.

Take, for example, Grant Sabatier, a 30-something self-made millionaire who founded the finance blog Millennial Money. He was able to save about $25,000 in two years by cutting back on housing, as well as transportation and dining expenses.

"At the end of the day it comes down to a personal choice, but I was happy moving to a smaller apartment, moving closer to my office, and eating out less, to bank the difference," Sabatier wrote on Millennial Money.

He continued:

"While I don't have the exact figures, I estimate that cutting back for 2 years, before buying my first home, I was able to save about $25,000 that I invested in 2011 and 2012, and that 'cutting back' is now worth more than $100,000 in my investment accounts. I'm going to continue to let it grow and hopefully making that decision 2 years ago will compound in 20 years into a lot more money."

Saving enough over a 40-year career to maintain your lifestyle in retirement is challenging enough. There's no shortage of advice about how much you should be saving, typically at least 10% of your income. But with the current US savings rate at 5.3%, according to the Federal Reserve, many Americans will come up short.

But there's a lot to be learned from people like Sabatier who have managed to hit their savings goals well before 65.

Rather than depriving yourself of coffee and avocado toast — though you might want to do that as well — take a hard look at how much you're paying for housing right now. If it's more than 30% of your pretax income, the standard measure of housing affordability, it's time to make a change.

To make more progress on your savings goals, however, you'll want to limit your housing expenses even further. Look for a place that costs 25% or less of your after-tax income, and funnel all of the cash you save toward your retirement accounts.

In some parts of the country (hi, New York and the rest of the Northeast), the percentage spent on housing can be even higher than the 37% average. But that doesn't mean it's impossible to find affordable options, even if you have to have multiple roommates or a longer commute.

Keeping housing costs low is smart, no matter how much money you have. The billionaire investor Warren Buffett lives in a modest house worth 0.001% of his total wealth.

The best financial move you can make is to literally move to a less expensive home. Once you do, you can celebrate at your local coffee shop.

4 Tips on Selling Your House When You Need to Relocate in Orlando

August 23, 2017

By Eugene

It’s not always easy to know how to be successful with a real estate sale, especially when you’re selling your house when you need to relocate in Orlando quickly. But there are some tips and suggestions that you can follow when selling your Orlando house that will lead to a successful sale.

In this post, we will offer some suggestions for putting your house on the market, finding a buyer fast that will be interested in your home, and closing the deal as fast as possible.

4 Tips on Selling Your House When You Need to Relocate in Florida

1. Beautify Your Home

First, make your house as beautiful and presentable as it can possibly be. When it looks attractive and beautiful to your potential buyers, you won’t have to work as hard at convincing them that it is a great home. When selling your house to buyers, be proud of your house and explain to the buyer why you need to sell quickly. Then they won’t think it is some other nefarious reason. Tell them that due to a job or relationship change, you need to move fast and therefore, you cannot afford to wait to sell.

Creating a sense of urgency for your house may make them more eager to purchase, as long as they know that you are being honest with them about the house.

2. Offer to help with some of the expenses

Think like the buyer and consider all of the costs they will have to deal with when purchasing your home. Expenses such as property taxes, clean-up costs, or moving expenses, to name a few. When you consider the other expenses outside of the price the buyer will pay for your house, you may be able to strike a deal faster with a buyer.

3. Lower the price

When trying to find a buyer in Apopka, compare your home to those in your local real estate market and lower the price to be more competitive. When you don’t ask for too much, you will increase your chances of closing a deal much faster than if you asked for what you would want for your house ideally.

Remember that, if you’re needing to move fast, you cannot afford to sit and wait for your house to sell. Some homes stay on the market for years. If you have a new location that you must move to quick, you’ll have to settle for a little less return on your investment than if you had all the time in the world.

4. Get to know your buyer

Much of the real estate sales experience has to know with getting to know your buyer. The more you can connect to the buyer, the more likely it is that they will do business with you. In this way, the real estate business is no different than any other business. People are more likely to deal with people they like and whom they trust.

Build credibility with your potential buyer and offer to do something for them that they cannot do for themselves; such as offering them a discount if they purchase within 30 days or offering to have someone babysit their kids while they view the house.

How We Can Help

If you are preparing to move to a new location and need to sell your house fast, we can help. We know the real estate business from both sides: buying and selling. We can help you figure out how to reach those eager buyers and close your deal fast so you can get on the road to your new location!

Cash is no longer king for South Florida homebuyers | Sun Sentinel | Paul Owers

http://www.eugenehoffman.com/about-eugene-hoffman/

Cash deals are by no means dead, but they aren’t dominating the South Florida housing market the way they once did.

Sales without mortgages are happening less frequently as investors flee and traditional buyers gain easier access to financing, industry observers say.

In the second quarter, 46 percent of the home and condominium sales in Broward, Palm Beach and Miami-Dade counties went to cash buyers, down from 49 percent a year ago and from 62 percent in 2014, according to ATTOM Data Solutions, a research firm based in Irvine, Calif.

Cash sales peaked in the first quarter of 2011, when more than seven out of 10 deals didn’t involve a loan.

“The market has dramatically shifted,” said Mike Pappas, president of Keyes Co. in Miami. “Cash drove the market in the bottom-feeding and opportunistic times, but today we have a real market with real buyers, and they need mortgages.”

Investors descended on South Florida in 2011 and 2012 as the six-year housing bust was ending. With prices hitting bottom, bargain hunters with fistfuls of cash scooped up foreclosures and short sales for pennies on the dollar.

The competition was so fierce that some real estate agents were telling clients who needed mortgages that they had little hope of winning bidding wars for the homes. Sellers much prefer cash to financing because they know the deals are likely to close more quickly and with fewer hassles.

Today, though, with values rising and distressed homes in short supply, investors who remain in the market are all competing for the same few properties, said David Dweck, founder of the Boca Real Estate Investment Club.

“The days of the high-profit flip are over, for sure,” he said. “There will always be foreclosures, but they won’t be at the level we experienced in the past.”

During and after the housing bust, lenders tightened underwriting standards, making it difficult for first-time buyers and others to qualify for mortgages. But those requirements have gradually loosened as the housing market has recovered, allowing more buyers to take advantage of historically low interest rates.

Avoid These 5 Risks Using Tax Liens in Orlando

August 17, 2017

By Eugene

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Using tax liens in Orlando is an attractive yet widely misunderstood investment option that is becoming more popular. Here is a cliff notes guide on how they work. Every city and county collect property taxes on real estate.

When property owners fail to pay the tax bill, the city is more than happy letting you pay someone else’s tax bill. This doesn’t come without risk to the investor.

What do you get for being the kind person paying someone else’s taxes? You earn interest on your money with the property as collateral. The ultimate goal is foreclosing on a property if the owner doesn’t pay the back taxes and interest.

Sounds pretty simple, right?

Don’t be fooled. For every investor making money with tax lien investments, there are a dozen others losing in the process, barely breaking even or losing money because of some unforeseen risk.

Find out more about Investors Goldmine

Avoid these 5 risks using tax liens in Orlando

Property Has No Intrinsic Value

People often assume that all real property has value. Not always true. There may be a valid reason why the property owner isn’t paying his property tax bill. Maybe it’s in a swamp or covered under a mudslide. Maybe the owner thinks the house is haunted or even overrun by gang members.

Getting any tax payments covering your investment and expected interest in these types of scenarios is difficult.  Worse, you might get stuck foreclosing on a property that that original owner couldn’t even unload. If any structures on the property are deemed a nuisance or hazard, you could become liable for additional costs once you take ownership.

The bottom line: visually inspect homes and neighborhoods as best you can, talk to realtors in the area about crime, hazards and other potential supernatural issues, and determine if the owner is abandoning the property for any reason other than financial hardship.

Other Tax Liens in Orange County

Generally, property taxes in Orlando take the first position in a foreclosure process, meaning it can write off an entire mortgage for the cost of a tax lien. While this sounds great, you may find yourself stuck with other taxes that don’t get forgiven in the foreclosure process including potential county, city or public school taxes. Check with the county assessor’s office before tying up your investment funds on properties with other encumbrances. Do you want to take a peek at tax lien properties for sale in Orange County ? Click here.

Not Fully Understanding Purchase

Tax lien sales vary from state to state and even within counties. Tax lien sales are different than tax deed sales. Tax liens are an investment over time where a deed sale gives you ownership immediately. If you’re paying a higher premium for a tax lien mistaking it for a tax deed, you’ll probably overpay for something that you thought gave you ownership of the property.

Paying $10,000 for a tax lien thinking it was a deed means you might have paid $9,000 over for the value of a $1,000 lien. You can see that isn’t a good investment.

Talk to the tax collection office to make sure you understand how deed sales and tax liens in Orlando work, what the process is and how foreclosures in Florida work. Don’t assume that a good deal in Florida is the same as another deal anywhere else in the country.

Laws and Politics Vary and Change

Unfortunately, things change in the investment landscape. Bankruptcy laws might delay foreclosures in some areas.  A foreclosure judge might not let you throw 98-year old Aunt Mae to the curb for being old and poor.

When you invest in Orlando, make sure you understand and stay abreast of the rules that affect your investment. If you can’t, consider sticking closer to home with your hard-earned money.

Poorly Researched Auction Purchases

Auctions are exciting. This is good for auctioneers and cities. It isn’t good for an investor getting caught up in the emotional feeding frenzy. Don’t be the minnow, be the shark.

Sharks know exactly what properties they want and the max price is for each. They know this because they researched every public detail available on the property and then conducted a visual inspection. Sharks estimate costs associated with fixing it and what the market in Orlando will yield.

Sharks know their profit margins well. Take your time, learn the process and jump in when you know enough details to make smart investment decisions.

When considering new investment strategies, let us help you avoid the risks of using tax liens in Orlando. Give us a call at 321-363-9625 or fill out the form on our website today.

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Tips on Selling a Rent to Own House in Orlando Fast

August 16, 2017

By Eugene

Are you planning to move soon or relocating to another area and need to sell your home fast? Sometimes it just takes looking at something from another perspective. Selling a house with a rent to own arrangement may be a solution if you cannot sell your home fast enough the traditional way.

Why Sell with a Rent To Own Contract?

If you need to sell your home fast, selling a rent to own house is sometimes easier than selling directly with a traditional sales transaction because it opens the door to more buyers. Some buyers do not have the credit rating or financial standing or resources to borrow money or get financing from a bank. Offering a rent to own contract gives them more options to purchase where they do not have to commit to immediate purchase.

Another reason you may want to consider this option is that it allows you to purchase your home back from the renter if they decide not to purchase or if you decide not to relocate after all. A rent to own contract is actually a rental agreement or a lease with an “option to buy.” This means that it is treated like a rental agreement until the person decides to purchase the house in full. This buys some time for both you and the buyer to try out the deal to see if it fits.

What is Special About a Rent To Own House?

Some people think that there is something unique about a rent to own house that is not present in other types of houses. Actually, it is not the house that makes the deal unique. The contract is the difference. You can take any house that you previously had on the market and turn it into a “rent to own” house simply by changing the terms of the contract.

This means that you may try to sell your home using traditional methods.  But, if you are unsuccessful, simply tell your real estate agent that you want to add a rent to own arrangement as an option for the buyer.

People who don’t have the best credit may be attracted to such a deal because it gives them a way to purchase a home with a no-risk contract that makes them feel more comfortable to take the plunge.

Tips for Selling a Rent To Own House

If you have a house you’ve decided to sell with a rent to own contract, here are a few tips to keep in mind that might make it more successful.

• Focus on the house first. When trying to sell a home, you should always focus on the house first. Don’t talk money until you establish that the buyer is interested and when you believe it would be a positive transaction for both of you.
• Ask them what they want. It’s always a good idea to find out what it is that your buyer wants to accomplish from the deal. By asking them what they want, you may be able to find out whether they are in it for the long-term and plan on purchasing the house or if they are just looking for a rental agreement.
• Find out what they can afford to pay. If you need to sell fast, you’ll need to find out how much your buyer can afford to pay. When you are ready to talk money, ask them what they can afford and work from there. If you mention the amount first and it’s too much for them to afford, you may lose the potential buyer over cost.
• Save the rent to own option for last. Remember that if you are the seller in a rent to own deal, your primary goal is to sell your house. Ask them if they can work out the financing first to purchase the house outright. Then offer the rent to own option as a last resort if they cannot work out the traditional bank financing.

Rent To Own in Orlando

When you are selling a rent to own house in Orlando, you should try to find out what the buyer wants and how you can come to an amicable arrangement that will be mutually beneficial. Selling a home outright will always be preferable if you need to sell fast. But a rent to own agreement can work fine if you need the rent money while you are waiting to see if they will purchase.

Selling Your House During Divorce in Orlando – Options At An Emotional Time

August 15, 2017

By Eugene

Selling your house during divorce in Orlando can be extremely difficult. Emotions can be high in a divorce. Chances are that someone at some time wants to destroy the house. The reality is, eventually emotions subside and we all become adults once again.

When it comes to divorce proceedings, the courts usually guide us to being adults faster than we are ready. Keep the home in tact because if you have to sell, you want top dollar. Plus you don’t want your ex-spouse to claim you damaged the property and have your portion garnished for the momentarily emotionally gratifying deed.

Agreeing to Sell and Split

One of the common ways to split assets in a divorce, especially a house, is to put it on the market, sell it and split any equity equally among the two of you. This is common especially if there aren’t children involved. It simplifies things by eliminating a pending mortgage and if you can sell quickly, expedites the divorce process. That being said, if the housing market is slow, this could drag things on longer than desired.

Talk to a realtor. Get an honest assessment for your Apopka home. Find out what estimated costs will get you a higher return. Negotiate realtor fees to keep net profits as high as possible and do a market analysis so you have reasonable expectations of the sale.

Preparing the House for Sale in Orlando

Do your best as a couple to clean up the house and make it presentable for sale. Remember you both have a stake in the successful sale. De-clutter and make it look like a happy family lives there. Continue to mow the grass. And if you really want to make it smooth, tackle that honey-do-list you have been avoiding.

She’ll scratch her head wondering why you were incapable of doing it before and you’ll know you just increased your sale value. Funny how you can win that way sometimes.

The Next House

If you are selling the marital house and will be buying a new house, make sure to coordinate things with your realtor to ensure you time the purchase properly. Divorces get hung up in court and house sales get hung up for a million reasons. You don’t want to be tied into a new home mortgage when other components fall apart.

Be honest with lenders and start the process early. While you need to be prepared, don’t lock any rates in before you are really ready to pull the trigger. Constantly running credit for new approvals can hurt credit scores.

One Spouse Keeps The Pad

While this option is more common when children are involved (to keep them stable), it is a viable option in any divorce if parties agree. In this scenario, you decide to buy the house from your soon-to-be-ex. He or she will agree to quit their interest in the property by completing a quit claim deed. For their part, you agree to assume the mortgage and buy them out of their equity.

To buy your spouse out of the mortgage, you need to contact the lender and explain the divorce scenario and request an assumption of the loan. Lenders will more than likely underwrite you as an individual to make sure you can afford the house on your own. Make sure you document all income you have, including spousal support.

If the lender won’t let you assume the loan, you need to apply for a refinance. If interest rates are lower, this might not be a bad scenario anyway. Again, this is a loan application. Meet all income and debt obligations to qualify.

[Nontraditional Buyers Method] Rent To Own Your Home In Orlando

August 9, 2017

By Eugene

The rent to own market is one that can benefit both the buyer and the seller in the right transaction. Having a clear contract and understanding of terms helps mitigate risk on both sides of the equation.

The Basics of Rent to Own Your Home in Orlando

Today’s lending market has a loan for just about everyone. However, there are consumers who don’t fit into the traditional lender’s guideline book. It might be for a variety of reasons but often has to do with not having enough of a down payment. The rent to own model allows a renter to pay a comparable price as they would if actually renting while accumulating the down payment. This is all done while living in the home they want to buy.

Seller’s Benefit

It may not seem like there is much for a seller to benefit from a rent to own scenario. After all, who doesn’t want to liquidate the home and take their profits and move on, literally? There is a group of sellers out there who aren’t in a rush for the funding and see it as an opportunity to ensure a higher sale price.

Sellers may continue to take advantage of property tax deductions and perhaps mortgage interest. If for any reason the buyers balk on the deal, the seller had income for the property for the duration the buyers were in the property.

Nicer Rental with Caring Upkeep

Both parties win when it comes to property condition on rent to own properties. Renters are usually looking at nicer homes compared to most rental market dwellings in the same price range. On the other side, the seller now has renters with a vested interest in the property to help maintain and care for it.

Elements of the Agreement

There are four basic elements to the rent to own contract: the option money, the purchase price, the rent and the maintenance fees.

1. The option money is like a good faith deposit when buying a home traditionally except it isn’t refundable in a rent to own scenario. This is money given to the seller that allows the buyer the option to buy the home later. This option expires if not used. The sellers typically keep the option money.
2. The purchase price is the amount the buyer will pay for the home once they execute the option to buy. Negotiating this price is tricky because it needs to consider the future value of the home. It can be hard to know if the housing market will be higher or even lower. The buyer may decide if the market drops to walk away from their option or try to renegotiate. Sellers will look to negotiate higher prices compared to the current market price.
3. The rent is the monthly obligation while in the option period. While rent is usually higher than typical rent, a portion is credited toward the purchase price in the home. This might be 25 % of every rent check.
4. Maintenance is an option the seller can include. This would be an additional fee to pay property taxes, repairs, and general home maintenance.

Should You Rent to Own Your Home in Orlando?

While rent to own isn’t for everyone, it is a good option when a buyer and seller both see the value in the arrangement. The buyers get time to fix issues preventing financing today but still get the property. The sellers get option money with the potential of a future higher value sales price.

Buyers need to work diligently to execute the option and be prepared to qualify for a traditional loan by the time the option is due. Check credit and talk to a lender early in the rent to own process so you can establish the right elements of credit and income to qualify for a loan that buys out the seller at the option execution.