Due to the collapse of sub-prime lending practices and “bad” loans that were automatically serviced by more reputable commercial banks, the United States housing market has suffered greatly. Our incumbent President Obama entered his term with Congress having already introduced the “bailout” as a partial solution to saving major United States corporations and consequently, industries. The housing market has experienced an astronomical amount of foreclosures during this economic downturn. Accordingly, distressed real estate purchases present options for homebuyers that they might not otherwise experience, had the market retained most appraised home values/pricing.
A buyer with $150,000 cash has the option of purchasing a distressed property for well below the market value, which in this kind of market is much lower than 4 years ago, provided the foreclosure amount the “seller” owes is less than the market value. In other words, a buyer purchasing a distressed property would do well to bid a contract price over the defaulted mortgage loan amount to cover the bank-owner’s investment into the property. So, my first recommendation would be to find a suitable property with these kinds of purchase features: Distressed property value is greater than the foreclosed loan amount.
Then, I would bid on the home to cover the defaulted bank loan amount to close the sale. Should the distressed property purchase be made with perspective buyers with good credit, I would acquire a loan from a long-standing reputable commercial bank. Preferably, a low-interest fixed rate loan product would be ideal. However, if a variable home loan was the only option, I’d seek one with a fixed interest rate for at least five years, and make sure there we...
... middle of paper ...
...ves, etc.
4 Use portion of $150,000 for acquiring additional “Green” funding/incentives or partnering with Green home improvement shows/networks.
5 Use remaining $150,000 and surplus funds to make the home green through energy efficiency, improving bathrooms and kitchen first (for room that add highest re-sale value), then heating, plumbing and electrical.
This plan provides for maximum personal enjoyment, adding Green value which saves energy costs and accounts for environmental friendliness (social responsibility) while using materials that will last (less in upgrades and repairs over time of home ownership). If owner doesn’t occupy the home personally, I would recommend putting the Green home up for sale, offering long-term savings for any new buyer. However, if I worked this hard to go green, I’d be settled into a new formerly-distressed-turned Green home!
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
...s selling for? What is the demand for properties similar to yours? Once you find an appropriate buyer and an appropriate price, it’s time to make the sale, and walk away with your wallet a little fatter.
In this article, the author writes about the Urban Renewal Plan and what it did to a community in Oakland, California. The West Oakland community was found in 1852 and had a diverse population living there. That article says that upper-class people would be living next door to working class people. After the World Wars that changed because lower income families started moving to the area looking for jobs. The jobs they had were created because of the war. When the war ended these people lost their jobs. At the same time, the Urban Renewal Plan was put into place. This plan set out to remove slums in urban places. This plan would relocated families, demolish houses and create low-income housing. When a family was relocated they received little
DETROIT, known as the "Automotive Capital of the World," is the largest city in the state of Michigan. The city sits at the heart of an official three-county metropolitan region comprising Wayne, Oakland, and Macomb counties.
When working within the realm of real estate, flipping houses is one of the most lucrative projects one can undertake. The premise of this idea is buying a home in need of repair, renovating it, and selling it at its newly appraised value. In high school, I worked alongside my mother to renovate a home in our small town of Trinidad, Colorado. The invaluable lessons I learned throughout this business venture gave me insights into the inner workings of house flipping. What I gained from this experience will lead to better decision making if I choose to take on another project. With a $150,000 budget, the most important aspects to focus on in a renovation would include updating appliances, applying fresh paint, installing proper flooring, and revamping the exterior. Assuming that the home being foreclosed on costs $110,000, I would allocate $20,000 of my budget for renovation expenses. This leaves a $20,000 buffer to be used as an emergency fund.
specialties are in demand, while the staffing and company greenly takes care of their housing and
Weltman, Barbara. "Tax Incentives for Going Green." NY Report. N.p., 3 Feb. 2010. Web. 06 Feb. 2014.
Sometimes banks and mortgage companies allow people with good credit to purchase property priced higher than its appraised value. For example, a single female with a good job and good credit was allowed to pay over forty thousand dollars more than the appraised value of the house she bought. Two years later she lost her job and immediately refinanced her mortgage loan for a lower interest rate and payment. A ye...
There are 180,00 families in America living a sustainable lifestyle and roughly around 1.7 billion people worldwide living without depending on the grid. (Palameri 1; Perez qtd. in Wood 1). The number of Eco villages, sustainable and intentional communities are rising across the nation as more people are discovering that they possess a strong inclination to live in the same manner as the Amish. This phenomenon is becoming a progressively popular choice for people from all walks of life. Not only are environmentalists and survivalists escaping the city life in efforts to live off the grid, but single families and people who are seeking to explore a simplified lifestyle are also joining the trend.
Typical loans don’t cover the cost of incorporating green aspects when choosing to build eco-friendly. However, there certain companies that offers energy efficient mortgages (EEM’s). One company, My Energy Loan (www.myEnergyLoan.com) does both residential and commercial eco-friendly loans, included in there services are ideas to help improve efficiency. They do an assessment and make suggestions on some ideas of improvements including lowe...
The Green Building is a way to increase the positive effects and fade the negative effects through the life cycle of the building.
“The building sector contributes up to 30% of global annual greenhouse gas emissions and consumes up to 40% of all energy” (UNEP). The building sector is one of the leading contributors to global warming and, as a result, is one of the leading contributors to melting ice caps, rising sea levels and the recent proliferation in extreme weather conditions. However, it does not just contribute to global warming; the building sector also contributes to urban pollution. In the US alone, the building sector generates hundreds of millions of tons of municipal solid waste each year. It is clear that the building sector must change if we are to survive as a species. Ultimately we need to convert our cities into “sustainable cities,” but a good start in that direction is a practice in the building industry known as Green Building. A Green Building is an environmentally sustainable building designed, constructed and operated to minimize its total environmental impact. Some of the main goals underpinning Green Building include reduced energy consumption, water conservation and recycling. Green builders do this by using renewable energy such as solar, wind or hydro, which provides the buildings with clean energy and zero carbon dioxide emissions. They manage water through water efficient irrigation systems, captured rain or site-recycled water for onsite landscaping. They also develop a waste management plan that diverts a substantial amount of solid waste from landfills to salvage facilities. A common assumption that many people make is that Green Building is very expensive. But the cost of a building, house or apartment complex that is Green depends on how “green” they want it to be. Prices can range from a mere one percent i...
Kats, G., Alevantis, L., Berman A., Perlman J., & Mills, E. (2003, October). The Costs and Financial Benefits of Green Buildings: A Report to California’s Sustainable Building Task Force. Retrieved from http://www.usgbc.org/Docs/News/News477.pdf
The use of green materials is better for the environment because they have a positive impact on the planet. Looking at our environment today we see a place that has been facing a massive climate change. Scientists have been concerned over global warming for decades. The ongoing increase of the earth’s temperature is believed to be caused by the greenhouse effect (“Global Warming” 27). Building with green materials produces significantly lower greenhouse gas emission. Specifically, wood as a material for building products, requires considerably less energy than other building products such as steel and concrete. Wood product manufacture results in fewer greenhouse gas and other air-polluting emissions (“Green Building Benefits”). Green building also results in waste reduction. In the United States, construction and demolition creates a huge amount of solid waste. Green building limits the waste prod...
Another important aspect of green architecture is the integration of energy efficient mechanical systems and conservation methods. Green buildings are designed to reduce or eliminate the dependence on fossil fuels. Additionally, green designs further help to minimize waste through the use of gray water recycling and other sustainable energy strategies. Grey water is conserved or saved to be recycled to water gardens.