What to Expect From HOAs

Here’s what to expect from an HOA.

If you’re considering buying a home in an HOA, be sure to thoroughly read and evaluate if it makes sense for you to live in such a community. There will be restrictions, guidelines, rules, and regulations, and while many people find that they keep the community nice and uniform, not everyone likes it. Living in an HOA will come with fees for the amenities and common areas. Sometimes these can be savings, such as when the cable, internet, and phone service are included because the HOA has negotiated a bulk rate with the provider. HOAs also have a community board, which will decide what type of community they want to have, such as what kinds of pets are allowed. There are often restrictions on certain breeds or weight classes for pets, whether you’re an owner or a renter.

"Ask questions upfront, read the rules and regulations thoroughly, and ensure that it makes sense for you financially."

On the subject of renters, HOAs may also have rental restrictions in place. It might be that you can only rent a certain number of times per year, for example. They may also have restrictions as to how you can alter your property, be that putting up a fence, using certain paint colors, or what types of vehicles can be parked in the driveway. It’s common to have a motorcycle or truck restriction; often, they’ll restrict work trucks, meaning that trucks with lettering on them aren’t permitted. Before buying a property in a community with an HOA, be sure to ask questions upfront, read the rules and regulations thoroughly, and ensure that it makes sense for you financially. If you’ve been considering purchasing within an HOA or have questions about doing so, be sure to reach out to me via phone or email. I’d love to help you. 

When Not to Sell High and Buy Low

Conventional marketing wisdom might not work in this market. I’ll share how we adjust accordingly.

You’ve probably heard the old market wisdom of "Sell high, buy low".

What Is a 1031 Exchange?

Sellers have been asking us more and more lately: What is a 1031 exchange?

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Simply put, a 1031 exchange was developed to allow a property owner to defer taxes from the sale of one property to the sale of another property. The IRS will approve a 1031 exchange as long as it meets their guidelines. To qualify, I recommend that you hire a company experienced with 1031 exchanges, consult with an attorney (or CPA), and hire a licensed real estate broker who has worked with 1031 exchanges. Investors are using this program quite successfully to maximize their return on investments. For example, when you’re selling Property A, you can defer the tax obligation to Property B. You’ll need to disclose this to the new buyers at the time of the listing. When you close on Property A, you’ll want to make sure that you disclose the property you’ll be buying. It can be a list of properties that you’re interested in, and you’ll have a window of opportunity to purchase that property to qualify for the tax-deferred exchange.

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Investors are using this program quite successfully.

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Again, using a qualified 1031 exchange company will guarantee that you’ll be approved, qualified to make sure that your transfer meets all the IRS guidelines, and able to maximize your investment. Many sellers are doing this because they want to diversify or trade property from one investment to another, possibly even from state to state.

Many people are making lifestyle changes due to COVID—including investing in properties—and it’s a great time to think about the advantages of a 1031 exchange. If you’re an investor or you’re looking to become an investor, this is an excellent opportunity we’d be more than happy to help you explore. If you have any questions, call or text today at (239) 248-8000. I’d love to help you.

What Are Your Financing Options When Buying Investment Property?

Are you thinking of buying investment property? Here’s how to get creative with your financing options.

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How do you get creative financing to purchase investment real estate? There are many ways, and here are a few tips to get started. First and foremost, look at the listing. What’s the seller’s situation and what are they willing to do? Quite often, investors in Southwest Florida who are selling a group of properties or individual properties don’t need cash and will hold a mortgage for you. This allows you to buy a home with less money down or more attractive financing terms and rates. Mortgage lenders also offer an FHA 203(k) program, which requires less money down and allows you to refinance repairs for the property, according to its after-appraised repair value. If you’d like to know more about this program, I’d be happy to put you in touch with a lender who’ll talk to you about it.

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Investors who don’t need cash may be
willing to hold a mortgage for you.

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If you have friends who are also interested in buying an investment property, another option is to buy a property as a group. If you’re a part of an investment group, try presenting a purchasing idea to them and see who’d be willing to share in the investment opportunity.

Sellers who are looking for a way to attract more buyers should consider creative financing as a way to increase activity and showings. This can cause your home to sell faster and at a higher sale price, plus greater net proceeds!

If you have any questions, call or text today at (239) 248-8000. I’d love to hear from you.