Deleaded Everett 3 Family with 3 bedrooms in each unit. Positive Cash Flow

INVESTORS DREAM - Large, Deleaded 3 Family with 3 bedrooms per unit and new rear decks off the kitchens. These units are spacious and have great lay-outs. There is off street parking for 3+ Cars. This property has been very well maintained. Separate Systems. Great basement with storage. Vinyl exterior. Rents have been at $1400/month plus utilities - first floor unit is currently rented - TAW. Close to public transit, schools and parks. Nice location on corner

Contact Jeffrey for more info and to schedule a private showing...

Jeffrey Carter, ABR
978.717.9015
www.jeffreyhcarter.com

Debt Coverage Ratio explained

The debt coverage ratio(DCR) measures your ability to pay the property's monthly mortgage payments from the cash generated from renting the property.  Bankers and lenders use this ratio as a guide to help them understand whether the property will generate enough cash to pay rental expenses and whether you will have enough left over to pay them back on the money you borrowed. 

The DCR is calculated by dividing the property's annual net operating income (NOI) by a property's annual debt service. Annual debt service is annual total of your mortgage payments (i.e. the principal and accrued interest, but not your escrow payments).

EXAMPLE:

Assume NOI of $20,000 and debt payments of $15,000.  The DCR is 1.33,  ($20,000/$15,000 = 1.33).

A debt coverage ratio of less than 1 (e.g. .75) indicates that there is not enough cash flow to pay the property's rental expenses and have enough left over to pay mortgage payments. Obviously, a lender will not be willing to loan you money to purchase a property not generating enough cash to pay him/her back..  In the above example, the DCR of 1.33 means that the property will generate 1.33 times more (or 33% more) in cash that is required to pay the mortgage payments. 

This ratio is widely used by investors and hard money lenders.  I provide the DCR in my cash flow analysis for all my investor clients.  

Want To Sell Fast-Be Accessable

Make sure your home is easy to show! To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. The first thing a good agent will do when working with buyers is talk to the buyer and learn what kind of home they are looking for. Then the agent will search all the available homes for those most closely matching what the buyer wants. Next, the agent puts together a list of the best matches to go show to the buyer. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device which holds a key to the home, that only qualified local agents can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”.  If at all possible, you should let your agent put a lock box on your home for easier showing.  If you can’t do a lock box, you need to be sure that you make it as convenient and easy as possible for other agents to show your home.  If they call, do whatever you have to do to accommodate letting them show your home to buyers on their schedule.  If you don’t, the agent will probably show the buyer other homes, and if that buyer makes an offer on one of them, you’ve just lost a great opportunity. It’s best if you can leave when the agent and buyer arrive to see your home.  Buyers won’t feel comfortable with you there, and it could sour an otherwise good impression.

Staging Your Home Checklist

Remove all clutter from the house. Are countertops free and clear? Have you removed unnecessary furniture throughout the house? Remove the art gallery and coupon collection from the refrigerator.

Check the bathrooms. Are the surfaces clean and clear? Are shower curtains and doors hung properly? Is the flooring clean and fresh? Are towels neatly hung?

Check the walls. Is paint and wallpaper fresh and clean? Are the walls free from holes? Are there any colors or objects on the walls that need to be removed?

Check the floors. Is the carpet clean and free from stains? Are hard surface floors clean and free from stains?

Check windows and window coverings. Are all the windows clean? Are draperies and blinds clean?

Pet check. Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.

How's the aroma? Try to air out the home prior to showings. If air freshener is necessary, use well before showings as a consideration to those with allergies.

Set the mood prior to showings. Open draperies and blinds. Turn on the radio to a classical music station, set the volume on low. If you have time, cook a batch of cookies to have the warm, welcoming aroma permeating the home.

Lets talk Commissions

Listing Commissions Real estate brokers normally charge a commission for listing and selling your home. The rate varies, both by region and according to service level. In most areas the commission is calculated as a percentage of the sales price and rates of up to 7% are not uncommon.  Your listing contract will specify both the amount of the commission and the timing for when it will be paid.  Like everything else in real estate, commissions are negotiable. Discount commissions It wasn’t to long ago that commissions below the “going rate” for an area were all but unheard of.  These days though, there are many brokers and agents willing to list your home for considerably less than the 7% that might be typical for the area.  You need to be aware though, that lower commissions are nearly always tied to lower levels of service.  Most agents willing to list your home for a bargain commission rate aren’t going to do any advertising or marketing of your home.  They will probably just list it with the local MLS and put a sign in your yard, and that’s about it.  Meanwhile, a full service, full rate agent will probably spend considerable time and money to advertise and market your home – particularly to other agents in the area.  So, when considering a low commission, be sure you know exactly what you’ll be getting, and what you’ll be giving up. Often, lower commissions will be part of a package deal where you agree to use a particular mortgage broker or you agree to buy your next home through the same agent that sells your present one.  There are some good bargains to be had with these package deals.  But again, it pays to examine the details closely, and make sure the whole package fits your needs. Paying commissions It’s important to understand how commissions are earned, and when they are paid.  Your specific listing agreement will spell out the details.  In general, a broker is considered to have held up his end of the bargain when he brings you a “ready, willing and able” buyer.  If the broker finds such a buyer, and you change your mind and back out of the deal at the last minute, the broker is probably going to expect you to pay the commission anyway, since he did his job.

Getting the Best Price for Your Home

Effective marketing is the key to selling your home quickly and getting the highest price. Aggressive, effective marketing of my Client's homes by every available medium is how I've become a top Realtor in the Michigan area. It's my job to assure that you get as many qualified offers as possible, allowing you to extract the highest price the market will bear. One of the most important elements of marketing your home effectively is setting the price right. Set the price too high, and you won't get any offers and your home will take too long to sell. Set it too low and you cheat yourself by not getting your homes full, fair value. As an expert in Western Wayne and Oakland County area, I analyze the market and set area home prices every single day. I'll work closely with you to assure that everything possible is done to get the highest price, in the time frame you need. The condition and appearance of your home are also critical factors in getting the best price for your home. I'll personally walk through your home with you and advise you of what you can do to properly stage your home most effectively. Some areas are much more important and more likely to pay off than others! Often, the buyer is motivated by emotional responses as much or more than financial issues. There are usually things I can point out to you that are easy and inexpensive, yet go a long way towards triggering those "buy" emotions. As your agent, I'll negotiate furiously on your behalf throughout the entire process to ensure that your best interests are protected. Real estate negotiations and contracts can be intimidating in their complexity. Most people have almost no experience in these negotiations after all, how often do you buy or sell a new house? As a top real estate professional, getting you the best terms and prices in all negotiations is simply part of my job.

Reasons why homes don’t sell

If you have had your home on the market for several months and haven’t seen much activity or any offers, chances are that one or more of the reasons below are to blame. Your price is too high No doubt about it, the most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many. Ranging from over enthusiastic listing agents to unrealistic seller expectations. Regardless of the reason though, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for the overly high asking price, the deal may fall apart before closing because the buyer may have problems financing at too high a price. Look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high.  The fact is, your home is competing against those other homes, and what buyers are willing to pay is what will determine final sales prices. The condition of your home There is a lot of competition out there to sell homes.  Your home has to compete against other similar homes for sale, as well as competing against shiny brand new homes.  The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale.  Look at your home with a critical eye – put yourself in the buyers position.  A buyer doesn’t want to have to do anything except move in.  Your best “bang for the buck” in improving the condition of your home are paint and flooring.  Make sure that all of the paint is in great condition, both inside and out.  Repainting doesn’t cost too much, and will usually make the biggest impact on buyers.  Make sure all of the flooring looks good too.  You may want to consider putting in new carpet.  Again, it’s not that expensive but it sure does make an impact on buyers coming to look at your home. Location, location, location It’s the oldest cliché in the world, but it’s true.  When it comes to real estate, it’s all about location!  When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood and noise or the smell of pollution can all effect how desirable the location is.  If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the house.  But the only really reliable way to overcome a bad location is with a lower price.  Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location. Your marketing campaign is out of steam The best listing agents all use an aggressive marketing plan to market their listings.  If your listing agent isn’t making sure your home can be found easily on the internet, isn’t actively touting his or her listings to other agents in the area, isn’t running ads in the local newspapers and real estate publications, then it might be time to change agents.  The best agents might even run radio or television ads for their listings.  If all your agent has done is put a sign in your front yard and add your home to the local MLS, then that agent isn’t coming close to doing all that can be done to effectively market your home. The market is slow You’ll hear it described as a slow market, or a buyers market, or maybe a cold market.  But it all means the same thing.  That home sales in the local area, or market, are slow.  That there are too many homes for sale and not enough active buyers.  There are several things you can do to combat a slow market.  The most effective strategy is to sell at a lower price.  Buyers are expecting to find bargains during a slow market.  You can also help yourself by offering to pay some concessions to help a buyer that might not have a lot of cash.  The ultimate way to beat a slow market is to simply wait it out.  But that’s not always an option for many sellers. Your home isn’t easily accessible To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible.  When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first.  Many homes on the market have “lock boxes” on them.  The lock box is a device which holds a key to the home, that only qualified local agents can access.  Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”.  If at all possible, you should let your agent put a lock box on your home for easier showing.  If not, you should do anything else you can to make it as convenient as possible for agents to show your home.  You have an agent nobody likes Sounds almost silly, but it’s very true.  If your listing agent isn’t liked or respected by other agents in your area, it could slow down the sale of your home.  When an agent prepares to show properties to prospective buyers, the agent begins by talking to the buyer to find out what kind of home they are looking for.  Then the agent searches the local MLS and other sources for homes that fit the buyer.  If there are a number of good matches to choose from, and one of them has been listed by an agent that is hard to get along with, or arrogant, or has otherwise made himself unpopular, well…  It’s just human nature to tend to skip over someone you don’t like.