Off-Campus Capital

August is National Back to School month, and as we watch the backs of our little ones entering what we hope will be an enriching learning experience, I want you to hold off on the mimosa for a sec and consider this. Have you thought about your child’s future once they hit the college scene? I don’t know about your college experience, but I do recall that come Sophomore year, those young adults are going to start seeking shelter off-campus.

You know how important investing in your child’s education is, but do you also know that actually investing for their future is setting them up for wealth and success? Ponder this—excluding tuition, consider the on-campus expenses you pay. Let’s use VCU as an example:

Those numbers are per year, so imagine little Jimmy going for his 4 year college degree and you’re out $80K. Imagine the expense if they been accepted to a private school!

Consider purchasing a home for your high school grad. It’s not that far-fetched. I’ve known a few parents who did this as a present for their kids’ graduation and it turned out to be a great investment for all involved. The benefits of becoming a landlord to your child and their roommates are plenty, but also what it will do for you all in the future financially is a great reward.

Start them off early and show them that the after-school job can do more for them than any video gaming system purchase. If I had that knowledge in my high school years, those part-time gigs could have relieved many years of renting headaches and saved me thousands of dollars.

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The average rent for apartments (1 bed) in Richmond, VA is between $1,285 and $1,786 in 2023 with the average rent for a single family home being around $2,038.

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Here are a few pros of buying for the next four years:

• Decrease student debt by omitting on-campus room and board.

• If there is a roommate/partner situation, mortgage payments will be reduced or paid for.

• It could be a nice way to decrease student loan debt.

• Student loans can help with rental and living expenses.

• Build equity and income.

• Once they graduate, you have a few options. They can take over the mortgage payments, become their own landlord, create a vacation rental, or sell it.

• They’ll be happier living in their own independent space.

• If you have other children going to school in the same area, the residence can be passed down from generation to generation.

• It will teach them responsibility and money management.

Of course there are cons:

• Maintenance will need to be handled, so you might have to pay extra when things go wrong. Make sure you have a handy network of on call professionals.

• Safety. It won’t be like a secured campus. They will have to take more precautions.

• Being a landlord can be difficult if your tenants are late or don’t pay their monthly rent.

• If you are a student, sometimes there are age restrictions in applying for a mortgage and also debt-to-income ratio can be a challenge.

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If you are interested in investing in your child’s future by purchasing a second home or having them purchase their first, contact me so we can get you started. it’s never too early and my lenders are on stand-by to answer any mortgage loan questions. Now feel free to sip those mimosas and wave goodbye to your future investors.

National Lender Professionals Month: Proving Your Worth

I am not a numbers gal. I was really bad at Math—surprisingly good at Algebra though, go figure. Anyway, when people mention numbers to me, my eyes kinda glass over and I start thinking about donuts. I know you are so excited about buying a home. You’ve got your showing shoes on and your vision board in tow, but honestly the first thing you should do before even contacting an agent is finding out what your budget is going to be. Why? Well it saves both you and I time. I cannot tell you how many clients I’ve shown $400K homes to, but they could only afford at $300K house. A lender will also give you the foresight to see what those monthly payments are going to look like. So if you are making a $1,200 monthly rental payment and that’s your max, then you definitely don’t want to look at homes that will give you a $2,300 monthly payment.

Finding a good mortgage lender is more than just finding the one with the best mortgage rate. A good mortgage lender will:

• Explain things clearly and will assess your financial abilities to purchase a home

• They will provide you with options for different mortgages that will suit your needs

• They will be responsive in their process

• They will be good teammates with your Agent. If you are already working or know your Agent, they will usually have a good referral

• They will be a good fit for you. You have to work closely and also be tr

Mortgages, Taxes. Insurance. All these things are tied into your loan and a lender can explain how all this works out financially. And let’s be honest here, this is a big life changing investment, you don’t want just anyone handling your loan approval. When I got into this business, I had several clients ask me questions about the listing and buying process—easy peasy, but then when buyers ask about the loan process, that was a little more challenging on my end. Here’s a little help:

To Download, Click Infographic

If you are thinking about buying a home, the best point of action is to start planning. Talk to a lender today and call me when you’re ready! Let’s do this!

Street Cred - What's the Plan Stan?

Credit. I used to fear this word. For me, I used to hear this word and associated it with word like “debt”, “collections”, and “whomp whomp”. Some people have a more positive reaction to credit — discount, trust, Free Man! When I hear my potential clients say, “I have bad credit,” I follow that up with, “Do you know what your credit score is?” to which they reply, “It’s probably pretty bad.”

The point is, most people might think they have bad credit, I for one thought I did for a while, until I bit the bullet and started talking to lenders for my plan to purchase a home. Turns out I actually had decent credit. I think people just get scared when credit scores start to get pulled. I cannot tell you how many collection agencies I had to duck and hide from while in college and early adulting. I say with anything and everything you desire in life, go get it. Make it happen!

Some of you may not even know what a bad or a good credit score looks like or what is looked at when we are talking about the loaning of money. So here are few things you should know when you get started:

• Before talking to a lender, pull your own credit score. It’s easy and it will show you what is amiss. You can do it at: https://www.annualcreditreport.com/index.action for free. Know that there is a culmination of three credit reports coming from Experian, TransUnion, and Equifax.

• What’s the magic number? You want a credit score of 620 or higher to apply for a loan.

• What do I do if I want to improve my score? Pay off debt, even if it’s just a little bit at a time, the activity will improve your score, especially those in delinquent status. Those are first priority.

• Do not open new lines of credit or close existing lines of credit, this can hurt your credit score.

• Get a savings account. If you are really serious about buying a house, start saving, it’s a good plan of action and will help you with your financial security.

• It is a good idea to have some sort of credit when applying for a loan. Get a credit card with a spending limit and use it for gas or groceries and pay it off on time, this will build your credit history.

• Pay your bills on time and try and pay more than the minimum payment due on any credit cards.

You are ultimately trying to change your debt-to-income ratio. Decrease your debt, improve your score, have a stockpile for your future down payment. It might take six months or up to a year, depending on your debt, but strive and make a plan so you can enjoy the benefits of home ownership. Good luck and start saving!

If you are ready to take that step, talk to a few lenders that can guide you and help you with your plan. They can answer all your financial questions and help you understand the loan process. Don’t get discouraged and don’t fear the information presented to you. Then you call me and the fun will really begin!

Home Buying: 5 Thought Distortions

I just bought my first home. I’m not only a real estate agent, but an almost 50 year old first time homebuyer. One of the things I keep hearing and seeing people post about is their inability to believe they too can buy a house. Some of you out there—CAN!

Thought distortions are habitual ways of thinking that are often inaccurate and negatively biased. I hear a lot of them on a daily basis, usually from myself (trust me I’m working on this). When it comes to home ownership this is what I hear:

It’s Cheaper to Rent than Own.

Um. No way. I’ve rented the house I just bought for four almost five years. I have given my landlord approximately $65,000+. Unless you live somewhere like California, chances are your rent is going to a lot less than paying someone else’s mortgage. Besides, you can’t raise the rent on yourself when you have a fixed mortgage payment and aren’t you just itching to be able to paint your own walls and not live underneath someone?

Don’t I have to put like, 20% down??

This is no longer necessary First time home buying doesn’t require 20% these days and in some cases you can put as little as 0% down! You also have more options and incentives as a home buyer. For instance, did you know that you could qualify for grants and assistance from state and local agencies? I've had a few transactions where money was given to assist with down payment for as little as taking an online class.

Ugh, I don’t think it’s a good idea to start looking in the Winter.

WRONG. It’s one of the best times to start looking because guess what? Those insane bidding wars that happen over the Spring and Summer where little Johnny’s parents are trying to find a house before he starts school…well you don’t have to deal with that. You get more time to really look at things and not have the pressure of other buyers to make a high offer. Your negotiating power is also increased. I love showing houses in the Winter. It’s quiet and you get to see how cozy homes can be! Also, the right time to buy a house is when it’s right for you!

I’m going with this lender because they have the lowest interest rate.

NO NO. Just because a lender has a lower rate doesn’t mean they will be the best one for you. Finding a lender who is going to be transparent and trustworthy should be a priority. If your are initially pre-qualifying that rate isn’t etched in stone. It’s easy to ignore other things like lender origination fees, points, mortgage insurance premiums and third-party fees. Finding a lender that fits you and your long term needs is essential.

My credit is crap, I’ll never be able to buy a house .

Whomp whomp buttercup, lift your head up because that is just not true. Also, don’t go into house buying with that attitude or you’ll never own. Just because you have debt or you think your credit score isn’t up to snuff, doesn’t mean you’re dead in the water. With home buying you need a PLAN and your lender is going to help you get to where you need to be. Kinda like that Noom coach. When I hear people give this excuse for not buying, I think of my gymnastics coach, “We don’t say CAN’T here.”

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It’s easy to talk yourself out of things. I talk myself out of not buying a pair of shoes quite often. The key to all goals is to have a PLAN. Just the way one might approach weight loss for instance. You aren’t going to start with doing three sets of 100lb bench presses. You are going to set a goal and gradually accomplish the steps taken to get to that goal. You want a house, then make it happen. Here are some tips to get started.

Start with talking to a reputable lender, sometimes an agent can help with recommending one for you. The lender will guide you through the financials and tell you what your loan options are or what you need to get you more buying power.

Hire a good agent. Someone who listens well, who explains the process well, is knowledgeable, and who you fit with. Sometimes it ain’t gonna be your Realtor friend, Mark. Just make sure they work hard for you and understand your needs as a buyer. And most importantly, remember you don’t pay them, the seller does.

Don’t get discouraged. Nothing worth anything is easy in life, sometimes it takes a little bit of work, but the reward is worth it. We all know that. You have to be willing to stick to it and with the right agent by your side, your biggest cheerleader and your best advocate.

Know your limits. It’s exciting looking for homes, but sometimes you aren’t going to qualify for the home that has everything you want, and you need to accept that. Look for homes that are going to give you value and that you can live comfortably in. Your first home doesn’t have to be your forever home, remember that. Have some vision, think of what that home is going to be for you. We’re talking goals here people. Think of the trajectory.

So, what’s your thought distortion? Are you going to keep telling yourself no, or are you going to set out with a plan and make 2022 your year of home ownership? Need some help? I know someone who might be able to get you started 😉.

Skipping Inspection: What Does that Mean?

You remember, well some of you remember, the Cabbage Patch Doll riots of 1983 or the Beanie Baby Bubble of the 90s? Two trends in America that caused moms to buy on the black market and dads to pick up baseball bats. This is the current state of Real Estate. If I had a dollar for everyone asking me “how’s the housing market now”, I could buy my own home. It’s hot people, real hot and will continue to scorch RVA for a while. That being said, having your realtor help you strategize and negotiate a deal is wise, it is what we get paid to do — protect your best interest and your investment.

My deals used to be pretty straight forward, a $10K jump maybe to be competitive, but nothing out of the ordinary. Now, I’m struggling to keep buyers in the game because losing a bid on a house you really want, is a “your dog is dead” moment. Many homes I’m seeing in the $185-250 range are going “as is” and investors are like Hungry Hippos gobbling up all properties deemed destined for flips. Which brings us to our main subject — home inspections.

When I tell my first time homebuyers that waiving inspection will help get them the house, they look at me with a look like Bambi in the woods. First and foremost, I would NEVER advise a client to not get a home inspection. It is just ill advice; however, I will say waiving it on the contract makes the offer more appealing. Waiving the inspection contingency doesn't prevent you from having a home inspection. It just means you won't be able to use results from an inspection to negotiate remedies or price with the Seller.

You are competing with big city transplants, cash only offers, and 30+ asking prices—I know, I feel defeated losing a bid too, let alone several. What it does say is, “Hey, I really want this house, look at what I’ll do for you to get it.” It is a risky move, yes, but it is not the worse move because if you have a good agent, they will know how to negotiate the terms of a no inspection contingency. We won’t ask the seller for any repairs, but we will do an inspection for informational purposes. In addition, making sure to put language in your contract that says if any “big ticket” items come up, you can negotiate. Big ticket items are things that are expensive to fix or replace (i.e., foundation, roof and heating, ventilation and air conditioning (HVAC), and mold remediation).

Our home buying process has become a thruple of a relationship these days. I am now advising my clients to bring a contractor with them on showings or if you really want to get ahead, bring your inspector, they can do a once over to see if there will be any potential problems ahead before you put an offer down. My guy charges $150 for a pre-inspection. People ask me if they should do this with new builds because they come with their own inspections. I say, yes, absolutely because you don’t know everyone’s abilities working on the house, sometimes mistakes are made, as this story shows:

“About six months later, they had problems because the ceiling fan in the bathroom was venting into the attic,” he recalls. “So moisture from the shower was going up into the attic space, and he ended up with a mold problem and some sagging. Sheetrock had to be torn out in the bathroom, and they had to do it properly.” - Jase Norsworthy, Real Estate Agent

So, should you waive inspection? If you want to be competitive in this market, yes, but DO HAVE AN INSPECTION. Make sure you have a clause in your contract to allow you to walk out if there are major expensive repairs to be done and the seller refuses to negotiate. Don’t trust what you see on the surface, you don’t know what’s behind the walls. All this just tells the seller you aren’t interested in nitpicking inspections items, but you are going to walk away from a potentially cost heavy problem. Aren’t we so nice? Strategize and materialize, that’s the name of the game. I always tell my clients to not get defeated if they are losing bids, it’s happening everywhere, but know that you will eventually get the home you were meant to have. Good luck and happy hunting!

Homeownership Makes You Happy!

Looking for Love in All the Right Places

She and I met when I was about 5 or 6 years old. She had an iron wrought gate surrounding her as though she wore a choker from the 1800s. Her color was pale blue and her two tiered porches wrapped around her waist as though she donned a lace trimmed ball gown. Her eyes were dark, but her lids came in a myriad of brocade colors and her steeples pointed to the heavens with such grace. She was a true beauty, and my dream for a long time.

I used to pass this house on my way home from school in my small hometown of Crowley, LA. I loved that majestic home, untouchable and hiding so many stories within its walls. It was the first home I ever can remember dying to live in. Fast forward 30 something years, and I’ve had a few crushes here in RVA, but none have drawn me in the way that gorgeous Victorian of my childhood did.

Falling in love with a home requires a true connection. When you are looking for the perfect match, there are some things to consider…

1. Attraction. What’s she wearing? Is it a ball grown or is it a little black dress? Does it wink at you when you drive by or does it tighten up when you approach it’s gates? We all have some sort of architecture we love whether it’s the warm coziness of a Bellevue bungalow or the stately Colonials adorning the near West End or the grandeur of Monument Avenue’s Classical Revivals. No matter what you love on the outside, that love at first site thing is real when it comes to house hunting. Her outsides are the first thing you see. You may be attracted to her country porch, her picturesque face, or you may be tempted with her manicured lawns and meticulous landscaping.

2. It’s What’s Inside that Counts. I’ve seen several unsuspecting homes. They don’t initially catch my eye as I’m driving up, but then I go inside and that’s where she gets me. Some people are attracted to flooring, some to unique details, and others to particular rooms. For me, I’m drawn to unique quarters like libraries and secret lounges. Yes, I know this is a higher expectation, but if I have to settle, I’ll settle for falling in love with a kitchen and/or bathroom. She could be a high class gal adorned with granite countertops and the most up to date appliances or she could have original floors and an antique vanity. I think a lot of people are looking for a home that meets a less cookie cutter image, something that feels more personal. You want the love of your life to stand out from the rest, no? Aesthetics aside, there’s something more important than looks…

3. That Warm and Fuzzy Feeling. It all comes down to how she makes you feel. When you open her door can you see a future? Do you feel warm or do you feel as though she might spit you out when you try to change her? I’ve had clients walk in and immediately walk right out because of an initial vibe. No matter how pretty she is, if she doesn’t give you the warm and fuzzies, it’s not for you. I don’t ever want to force my clients into falling in love with something they don’t want to marry. I encourage people to take in a home, walk around it, glide your hands down her banisters, lay in her tubs, lean on her counters, check out her surroundings, and visit her at night. Then ask yourself, Is she loving you back?

Not every home is going to be The One. You could find one that is Fun for Now, but not marriage material. The most important thing is not to be rash, but to take some time and get to know her, find out all you can about her, learn about her history and how she’s grown, and make sure she doesn’t have any baggage that’s going to come up later.

I pine for the day I can walk into a home and say, “This is my forever!”. Until then I’m still dating around, trying to find out which one is worth my investment. What about you? Have you fallen in love yet? Are you ready to make a commitment? I’d love to hear more Love Stories, feel free to leave a comment.

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For the Love of Home Questionnaire

1. What was the first home you fell in love with and why?
   See Above and also because I really love historic homes.

1. What was the first home you cohabited in? You know, your first love nest?
   We’d been dating for well over 3 years and although he was at my house pretty much every day, we didn’t officially move in together until 2002. 3 S Vine. A small one bedroom apartment that I fell in love with because it was updated and the location was stellar. We ate at The Lighthouse a whole lot! The thing I loved about it the most was that we lived there alone — no roommates!

2. What was the home that got away?
   I have house regret. There was this beautiful house in the near West End that my friend lived in. When she moved away they put it on the market and I wished I could have bought that lovely house on Kensington.

3. What is the decor you are crushing on currently?
   I’m really digging vintage style wallpaper. I think seeing shows and film influence my style choices. Ever since I watched Sharp Objects, I want all of that! I am also digging the Art Deco style that has made a comeback. The colors in particular, I just love moody, lush colors.

4. What is your home breakup story? The home you miss the most or the home that brought you nothing but heartache?
   It’s not necessarily a “home” in terms of the construct you live in, but the home I miss the most is New York, funny, it the home which has brought me the most heartache as well. I do miss it’s vibe though!

5. What is your favorite place you LOVE to be in at your house and why?
   Our bedroom. I love how dark it is and yet how bright I can make it. I also love our front porch which makes for a great way to get to know your neighbors.

6. Was or is there a neighborhood you LOVE the most?
   Yes, this one. Ginter Park and Brookland Park has been my favorite place to live in RVA. I love it so much! Its walkability, its business owners, its friendly neighbors and the homes are incredible and historic.

7. What is your favorite piece of furniture?
   Right now it’s the album holder which was custom built by Tom Brickman. In the future I hope it is velvet chaise I hope to attain.