Category Archives: For Buyers

How much money do I need to buy a house in NJ (New Jersey)

REAL ESTATE QUESTION OF THE WEEK HERE

“Hey OLA. I see conflicting info all over the place.

I am seriously thinking about buying a home. But I can’t seem to find straight forward information on exactly how much I need to make it happen.

Can you shed some light on this? I don’t want to get into this unless I know exactly what I am getting into in $$$

Thanks for your videos.”

How much money do I need to buy a house in NJ (New Jersey)

– Debt Service Coverage Ratio

– Downpayment

– Closing Cost

– Seller’s Concession

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http://OLATux.com/realestate

ABOUT YOUR HOST ::::|
OLA Tux Abitogun
Ola “Tux” Abitogun is the Creator of myEmpirePRO. He became a FULL TIME entrepreneur in October 2006.

He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents. He considers himself a proud Nigerian American.

Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur. Most importantly, he is husband and father to their 2 Boys. The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.

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How do you buy a foreclosed home in new jersey

“Hello OLA,

I graduated from college about 8 and half years ago and I bought my first home within 2 years.  Not too long after that, I lost the home into foreclosure due to my carelessness.

I’ve since worked on my finances and I am ready to buy a home the right way.  Hopefully you can help me.  

Through my studies and research, especially with my experience in being a victim in a foreclosure, I am thinking that buying a foreclosed home for cheap won’t be a bad idea.

What do you think?  What are the up and downsides to buying a foreclosed home in new jersey and how do I go about it.

Thanks much.”

– Sheriff Auction
– Shortsales
– REO

ABOUT YOUR HOST  ::::|

Ola “Tux” Abitogun is the Creator of myEmpirePRO.  He became a FULL TIME entrepreneur in October 2006.

He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents.  He considers himself a proud Nigerian American.

Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur.  Most importantly, he is husband and father to their 2 Boys.  The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.

Follow OLA Online Here:

Instagram :|: http://instagram.com/iTuxB
Facebook :|: https://www.facebook.com/NetworkMarketing2.0
Twitter :|: http://twitter.com/iTuxB
Snapchat :|: https://www.snapchat.com/add/iTuxB

PODCAST
iTunes :|: http://apple.co/2ktmxnn
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MOBILE APPS
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WEBSITE
Personal Blog :|: http://OLATux.com
myEmpirePRO :|: http://myEmpirePRO.com

Download the audio for free with this link.

What is the first step in buying a home?

“Wassup OLA,

I’ve tried to read a lot on the internet because I feel I should stop renting all together.  I feel like I’m not getting anywhere so I decided to send this email to you.

Frankly, I am confused and probably overloaded with too much information.  I’m just 2 breaths away from ignoring the idea of buying real estate.

Is there a way you can break the process of buying a home down into 3 of fewer steps so I can understand before diving in.

Thanks in advance.”

1ST STEP – Call a Competent Agency Team
& Get a Trusted Pre-Qualification Referral

ABOUT YOUR HOST  ::::|
OLA Tux Abitogun
Ola “Tux” Abitogun is the Creator of myEmpirePRO.  He became a FULL TIME entrepreneur in October 2006.

He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents.  He considers himself a proud Nigerian American.

Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur.  Most importantly, he is husband and father to their 2 Boys.  The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.

Follow OLA Online Here:

Instagram :|: http://instagram.com/iTuxB
Facebook :|: https://www.facebook.com/NetworkMarketing2.0
Twitter :|: http://twitter.com/iTuxB
Snapchat :|: https://www.snapchat.com/add/iTuxB

PODCAST
iTunes :|: http://apple.co/2ktmxnn
Soundcloud :|: https://soundcloud.com/network-marketing-2-0
Stitcher Radio  :|: http://bit.ly/2j56O1N

MOBILE APPS
Apple App Store :|: https://appsto.re/us/NQrM_.i
Google Play Store :|: http://bit.ly/2jpTROo
Amazon App Store :|: http://amzn.to/2ktaA5q

WEBSITE
Personal Blog :|: http://OLATux.com
myEmpirePRO :|: http://myEmpirePRO.com
Download the audio for free with this link.

[Video #7] What is the TRUE cost of holding or carrying Real Estate?

Click the Video Below to Watch
[Video #7] What is the TRUE cost of holding or carrying Real Estate–NOT
In this video, I sharing some thing that can cost you a lifetime of financial pain if you don’t note it. Most people make this mistake at least once in a lifetime. It’s about how to estimate your real estate holding cost properly.

The tip is good for home in the $100,000 to $400,000 range only. It may vary outside of that. Nonetheless a good tool to have handy.

I don’t want to spoil it for you. Just watch and enjoy the video. Please share it with your loved ones as well.

Enjoy the video.


holding, cost, real, estate, carrying, costs, investment, flipping, houses


Other Resources

We Buy Houses. Any area, any condition. No Equity. Mortgage under water. NO PROBLEM
www.SELLitFastCash.com

FREE WEB CLASS 3 Deadly mistakes to avoid when BUYING A HOME and how to make sure the biggest investment of your life doesn’t turn into a nightmare
www.HomeBuyersWebClass.com

[Video #5] Home Buying Precaution and Oil Tank Nightmares

[Video #5] Home Buying Precaution and Oil Tank Nightmares

Today, I’m going to continue into the part two of this series that we started last week with Mike Okechuku, Attorney at Law.

The audio is not that great but just listen in, there’s a lot of nuggets in it.

On this particular episode, he’s going to share his “coming to America” story with you. He bought a house in Newark, and then the wife came and she wanted a bigger house with a good kitchen and all that stuff.

He shared how he avoided a lot of trouble with that process especially during the 2008 massive market crash. He’s going to tell a story about that so stay tuned for that one.

Now, speaking of trouble in real estate…

It’s very important for you to work with a professional. Either you’re buying a house or you’re investing or whatever you’re doing with real estate, it’s very important that you speak to people that know what they’re doing.

There’s a lot of potential trouble if you don’t.

Just as much as you can make … you can build wealth, like you can make a lot of return by simply purchasing real estate either as a home or investment, there can also be a big down side to it. Speak to the right professionals.

Just a few days ago, I was at an event and one of the things that we discussed was oil tank. When you purchase a home, they order an inspection. With inspection comes things like checking for oil tanks and other things to protect you.

Once upon a time, the way people brought heat into their house was through burning oil. There’s an oil tank, usually in the house somewhere (underground, above ground, sometimes under the porch).

So if there’s a hole that was created in the oil tank, it can end up contaminating the soil in the ground and it can end up contaminating underground water and that’s a big environmental deal for the government agencies.

I wanted to share that with you so that you can make sure that you’re working with the right professionals when you decide to purchase a home. You don’t have to wait until you purchase a home. You can start learning now.

One of the avenues is obviously plugin into this weekly video blog right here. You can learn a lot just by checking in every week. By sharing it with your friends also, you will get to help a lot of people as well too.

Just be careful, one of the things you have to pay attention to when you’re purchasing a home is oil tanks. You want to know if there’s been one in the house, if there was one before, you need to dig it out and clean up–mostly in existing homes.

If you’re buying a new construction, you can worry less about that because people are heating their homes right now with gas. So that’s what I have for you today.

Watch the video because Mr. Mike Okechuku is going to talk to you a little bit more tell you a quick story on how he avoided some of the trouble you could easily get into back in 2007 and 2008.

… during the biggest real estate fraud that this country has ever seen. Thank you for plugging in on episode number five. I’ll see you on episode number six!

[VIDEO] AVOID surprise bigger mortgage payments at closing; mortgage insurance vs home owners insurance.


Hey. Welcome to the second episode.

I got a very nice one to share with you on this episode, and it has to do with insurance

So when you’re buying a home, there are quite a few things that goes into it. One of them is insurance. There are literally a lot of insurance purchasing involved in buying a home; depending on you form of payment

Be it mortgage, cash, FHA loan or a regular conventional loan.

So a lot of people confuse mortgage insurance premium with homeowner’s insurance. Those two types happen almost the same time, and then there’s another one that happens during closing, which is title insurance.

I’m going to try to tell you the difference between all of them.

So mortgage insurance is usually involved when you’re using a FHA loan.

What’s FHA loan?

The government have a program called the First-time home buyer’s program. Essentially, you don’t have to come up with a conventional 20% down payment.

For example, if you were purchasing a home for $100,000, you would need $20,000 (20%) down payment with a conventional loan. But with the government’s program FHA, usually for first-time home buyers, you only have to come up with 3.5%.

So for $100,000 home, you would need to come up with $3,500. For a $200,000 home, you would need to come up with $7,000 down payment as opposed to $40,000 (20%) for cash down payment.

To protect the banks, with a down payment of 3.5% for an FHA loan, in place of coming up with the down payment of 20% in a convertional loan, they require you to purchase what they call the mortgage insurance.

So you’re paying the mortgage insurance premiums. Some people call it MIP. That’s a type of insurance right there.

There’s another type of insurance that you have to buy regardless of what kind of financing you’re using to pay for the home. It’s called the homeowner’s insurance. That protects you as a homeowner.

The mortgage insurance protects the lender in case you default a.k.a in case you stop paying your mortgage. With a downpayment as low as 3.5%, it becomes a high-risk loan so the mortgage insurance protects and edges against that risk.

The premium is usually rolled into your mortgage payment, okay? The homeowner’s insurance is something you pay for separately. That’s something that protects you in case something happens to the home like fire and other type of disasters.

That’s homeowner’s insurance and you have to buy one regardless of your type of financing.

It’s kind of like your liability type of car insurance. It doesn’t matter if you finance the car or not. It’s the minimum you are required to have by law. Homeowner’s insurance is similar.

But when you’re using FHA, you don’t have a choice. You now have to purchase a mortgage insurance premium with that. It’s included into your mortgage payment.

So a lot of time, people will say, “Hey, they told me that my mortgage payment was supposed to be $1200. How come it’s now $1300?”

That’s because you’re using FHA loan, and that insurance is rolled into it. They also add your taxes.

They call it P.I.T.I. (Principal, interest, taxes, insurance).

So that’s the difference between the mortgage insurance, which protects the lender, and your homeowner’s insurance, and that protects you as a homeowner. So hopefully, you find that tip enlightening and useful. Please feel free to reach out to us.

We also have brand-new online workshop for new home buyers. It’s available now at this link.

HomeBuyersWebClass.com

That will take you to registration page, and you can attend a full-blown 60-minutes workshop on the 7 people you need in a complete real estate transaction. You will also learn the 15 steps to actually buying a home. That’s all covered within 60 minutes.

You will find it very useful in your real estate endeavors. Please help us share it. Share this with your friends, even those that may already own homes, and you’ll find this information useful, and we’ll absolutely also appreciate it. I will see you on the next one. Peace.

[VIDEO] Property Taxes VS Mortgage Amortization

This is the first of many videos i will be posting.  Enjoy it.

This is 2016 and it’s a brand new day.  In this series, I share tips.  On today’s episode, we are touching on property taxes.

So i am in the middle of looking for a home for someone in Sayreville. The average property taxes are some between $5,000 to $6,000 per year.

There was this particular nice house.  Most of the houses in Sayreville are ok; pretty big and nice house.  Generally speaking bigger properties have bigger taxes.

From what it looked like, this house was a $400,000 being sold for $300,000.  Looking at this on face value that is a good deal right?  You get to save $100,000.

But it’s not that simple.  The property tax on this home is about $9,000 per year which is about 80% more than the average home in that area.

So which one is a better deal?  Save $4,000 per year or save $100,000 on the mortgage loan amount needed.  Watch the video for my insight on the matter.

See you next week.

8 Steps to Buying a Home

1. Decide to buy.

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best “accidental investment” most people ever make. But, we believe when it is done right, home ownership becomes an “intentional investment” that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

  1. If you are paying rent, you very likely can afford to buy
  2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
  3. The lack of a substantial down payment doesn’t prevent you from making your first home purchase
  4. A less-than-perfect credit score won’t necessarily stop you from buying a home
  5. The best way to get closer to buying your ultimate dream home is to buy your first home now
  6. Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way

 

2. Hire your agent.

The typical real estate transaction involves at least two dozen separate individuals-insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent

A Buyer’s Real Estate Agent:

  1. Educates you about your market.
  2. Analyzes your wants and needs.
  3. Guides you to homes that fit your criteria.
  4. Coordinates the work of other needed professionals.
  5. Negotiates on your behalf.
  6. Checks and double-checks paperwork and deadlines.
  7. Solves any problems that may arise.

 

Eight important questions to ask your agent

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

  1. Why did you become a real estate agent?
  2. Why should I work with you?
  3. What do you do better than other real estate agents?
  4. What process will you use to help me find the right home for my particular wants and needs?
  5. What are the most common things that go wrong in a transaction and how would you handle them?
  6. What are some mistakes that you think people make when buying their first home?
  7. What other professionals do you suggest we work with and what are their credentials?
  8. Can you provide me with references or testimonials from past clients?

 

3. Secure financing.

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to Financing a Home

  1. Choose a loan officer (or mortgage specialist).
  2. Make a loan application and get preapproved.
  3. Determine what you want to pay and select a loan option.
  4. Submit to the lender an accepted purchase offer contract.
  5. Get an appraisal and title commitment.
  6. Obtain funding at closing.

 

4. Find your home.

You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long-if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

  1. What do I want my home to be close to?
  2. How much space do I need and why?
  3. Which is more critical: location or size?
  4. Would I be interested in a fixer-upper?
  5. How important is home value appreciation?
  6. Is neighborhood stability and priority?
  7. Would I be interested in a condo?
  8. Would I be interested in new home construction?
  9. What features and amenities do I want? Which do I really need?

 

5. Make an offer.

When searching for your dream home, you were just that-a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies (or “conditions” in Canada).

Price-the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.

Terms-the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

  1. Schedule-a schedule of events that has to happen before closing.
  2. Conveyances-the items that stay with the house when the sellers leave.
  3. Commission-the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
  4. Closing costs-it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
  5. Home warranty-this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
  6. Earnest money-this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

 

6. Perform due diligence.

Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.

A home owner’s insurance policy protects you in two ways:

  1. Against loss or damage to the property itself
  2. liability in case someone sustains an injury while on your property

 

The property inspection should expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.

  • Your major concern is structural damage.
  • Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
  • If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

 

7. Close.

The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few preclosing responsibilities:

  1. Stay in control of your finances.
  2. Return all phone calls and paperwork promptly.
  3. Communicate with your agent at least once a week.
  4. Several days before closing, confirm with your agent that all your documentation is in place and in order.
  5. Obtain certified funds for closing.
  6. Conduct a final walk-through.

 

On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:

  1. Finalize your mortgage.
  2. Pay the seller.
  3. Pay your closing costs.
  4. Transfer the title from the seller to you.
  5. Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

 

8. Protect your investment.

Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.

Even after you close on your house, you agent can still help you:

  1. Handle your first tax return as a home owner.
  2. Find contractors to help with home maintenance or remodeling.
  3. Help your friends find homes.
  4. Keep track of your home’s current market value.

Attention to you home’s maintenance needs is essential to protecting the long-term value of your investment.

Home maintenance falls into two categories:

  1. Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.
  2. Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.

Getting the choice of your dream home as a first-time home buyer; knowledge of what to do enhances your choice…

There is a saying that, “For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it,  lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him”.

This saying is very true today and it applies to everyone who aspires to buy a house; especially, first-time home buyer.  It is necessary to have knowledge of what to do, before you start the process of buying one.

This is the reason for enlightening you with these 9 steps to guide you as you are preparing to buy you dream home.

9 Steps guide

1.     Taking a decision – This is the most important of all the steps of which if it is taking rightly, other steps would follow smoothly: even though, other steps would be of consideration for the decision taken. Your decision would be taken based on how best you can satisfy these questions.

a)     Do I need a home?

b)    Why do I need a home? (Is it for satisfaction, up-grading, freedom from landlords, to build equity or need for expansion because of children?)

c)     When do I need it? (while a bachelor, after marrying or for children sake)

d)    What location? (considering neighborhood, economic reason, busy or for quietness)

e)     What is my financial status?

f)      Do I really need a home?

2.     Seek professional guidance – After you have decided to buy a home, you need to find a real estate agent to help you through the process.

3.     Consider your financial status – Will your financial situation be good enough to cover preliminary and surprise expenses before closing? For example, down payment, insurance, renovation (if need be), property taxes, closing costs and among others.

4.     Get pre-approved for mortgage – what the pre-approval says is “you are qualify for a specific amount”; It means, you are qualified. What are you approved for? Your Credit score, Employment history, Assets if any, property value or other related documents.A very good real estate agent would be able to help you through. That is exactly what we are.

5.     Begin to search for your dream home – having being pre-approved for certain amount, begin to search for places that suits and satisfies your reason for buying a home and that which satisfies the price range approved.

6.     Do a research of your choice of home – Not all that glitters are goal; not all pictures reveal the true size of a house seen in any advertisement. Do a thorough research about the home; especially, pre-owned houses. Looking floor plans before going out to see the property.

7.     Negotiate the deal – put in an offer you’re comfortable with and counter-offer if the need arises.

8.     Close – closing is not that all easy, however, if steps 2-7 are satisfied, there shouldn’t be any problem. As I have mentioned in step 3, expect for cases of some surprises. At this point, it is believed that you have been acquainted with these costs and had satisfied all requirements. Congratulations, welcome to your new home

9.     Move in and enjoy your dream home.

Remember, we are at your service anytime. Call us as seen at the top of the page.

The Right Financial Status to Buy a Home: SECRET Formula

So people ask me the question all the time. “What is the right financial status to buy a home?”

It’s a good question and if you ever had that question in mind, it’s a great mind state to be. It’s also a sign that you are a responsible person from a financial stand point.

There are 2 types of home buyers from a purchase money source standpoint:

  1. Cash buyers
  2. Home loan buyers

Cash buyers typically do not have this type of worry. They typically fall in the affluent group of people. The question for cash buyers is usually what type of home their budgeted cash covers.

However, home loan mortgage buyer have to worry about what monthly mortgage payment they can afford with other housing expenses. A few years back, predatory lending practices discouraged people from worrying about that because of home value speculations.

It goes like this, “buy low and sell high.” They encouraged people that they can squeeze their finances even if it’s unhealthy because the home will sell at a higher value. You probably know the end of that story.

There is a major problem with that type advice because it did not account for overbought/oversold and overvalued and undervalued marketplace. Therefore in 2008, many families ended up under water due to the massive market crash.

To answer the question, first it really depends on if the home to be purchased is a primary residence or not. If it is not, I will expand on the answer for non-primary residence on future posts. For now, let’s focus on primary residence.

We all need a roof over our head. As an adult, you probably pay rent already anyway. There is and/or should be a housing budget in your finances anyway.

With that being said, typically in a conventional loan, the bank wants to see between 25% – 28% of your income as your affordability for housing expenses. 30% is a push and should be avoided.

Your monthly mortgage payment, including taxes, insurance and other fees, cannot exceed 28 percent of your gross monthly income.

Example:

If you make $100,000 per year:

  • All you can afford per year for housing is $28,000.
  • All you can afford per month for housing is $28,000 divided by 12 months = $2,333 per month.

When you buy a home, making sure that your monthly mortgage payment is not above your affordability is key to an enjoyable home ownership. When you follow this rule, you become immunized against real estate market movement.

In a case in which you have to sell, you will avoid the pressure of overpricing your home. You can get talked into buying an overpriced home because the average realtor/loan officer only care about instant commissions. Be careful!

As a homeowner trying to see, overpricing a home only does one thing. The house sits on the market and does not sell in 180 days while you continue to ring unwanted expenses. A market crash will not put you in a state of emergency if you follow the 28% rule.

When you break that rule, you are essentially buying an overpriced property. There are a million ways that you are now exposed to over 1,000 home ownership crisis which can include foreclosure, bankruptcy, negative equity etc..

I hope this has been helpful for you and your future home ownership endeavors. Please share this post with your contacts and social media connections. All referrals are highly appreciated.