Posts in category: Uncategorized

What is a single level home?

A single level home is just as it sounds: It is a home–built on one level. Often referred to as a “patio home” or “slab home.” Not to be confused with a crawl space type foundation commonly used with mobile and modular homes. They are finished and appear the same as any home.

What are some of the benefits of a single level home?

Single level homes have no steps inside and rarely have steps on the outside. People with physical disabilities are obvious candidates for a single level home. Elderly folks or those looking to build for retirement also can benefit from a single level home. Just about anybody can appreciate not having stairs to climb after a hard day’s work. Not having the extremely dangerous hazard of someone falling down a set of stairs is a priceless benefit.

Eliminating the wet, damp, moldy, basement or crawl space that is constantly under the risk of flooding is another huge benefit! Single level homes do not require a sump pump or any type of mechanical drainage system to maintain.

Crawl spaces and basements are notorious for housing rodents, critters, insects, snakes and other reptiles. With a properly built single level home, keeping Mother Nature’s little creatures out of your new structure is easily manageable. Stairways consume valuable square footage as well as being expensive and complex to build.

A single level home is an excellent match for a hydronic, in-floor heat system. With proper planning the slab can operate as a “mass thermal storage system” that will store heat in the winter and provide natural cooling in the summer. This storage system is very energy-efficient and typically qualifies for price reduction incentives by energy providers such as electric companies.

How are single level homes built different from traditional homes?

Single level homes are commonly built with a Frost Protected Shallow Foundation (F.P.S.F.)” or “Monolithic Foundation,” This means that the concrete footings and the slab of the home are constructed as one unit, rather than the traditional footing.

In addition an F.P.S.F. has insulation both horizontally and vertically on the perimeter of the foundation. The size of the insulation is determined by a chart according to frost depth of each individual construction area. The 2009 International Residential Building Code references this in section R-403.3 in the code book. As with any foundation system it is extremely important to use quality building practices and materials.

Understanding the characteristics of the soil and environment is vital as well. “Clay” or “water saturated” soils are undesirable soils when building with an F.P.S.F. A soil that has natural drainage properties such as sand or pea gravel is more desirable. Water saturated soils tend to freeze and expand causing obvious problems with concrete and other building materials. A building site with water saturated soils can be rectified simply and affordably with a more desirable soil such as “fill sand”. One of the major benefits of an F.P.S.F. is the reduced cost compared to a traditional foundation, without compromising the integrity or longevity of the structure.

What about flooding?

Proper planning regarding the slab height according to the high water table in the building area is a sure way to keep a single level home safe from flooding. The use of a good water runoff plan is critical as well. Keeping the slab up higher than the ground and sloping the earth away from the house is vital. The use of “flashing” where the slab meets concrete walks, decks, etc. is extremely important. Common sense will go a long way when planning and building a structure of any kind.

Worried about tornadoes and high winds?

With the weather we experience in the Midwest, the idea of living in a home without a basement can be intimidating if not scary for some folks. There are several different types of storm shelters that will work for a single level home. A well designed, above ground, built-in storm shelter, will protect you and your family, and alleviate some of the fear that comes from tornadoes and high winds that have been known to have devastating results. There is also an option of a below grade storm shelter. These can be as simple as a mini basement which can double as a spare room.

Make your next home a single level home!

Single level homes are becoming very popular in the housing industry. “Why?” You may ask–there are so many reasons! The benefits are plentiful and the costs are affordable. The sky is the limit when it comes to designs, floor plans and options. They are innovative yet simple to operate and maintain. The conservative building practices used are in alignment with green building. They really are the home of the future.

Homes sold by owners are advantageous for both the seller and buyer. If the house that is put up for sale sells for $200,000, for example, and the common commission rate ranges up to six percent of the selling price, then both the buyer and seller can save $12,000 – money that would have been used for an agent’s commission. And if the property owner dedicates a lot of time in finding the prospective buyer of his home instead of spending weeks or months finding an agent, then he will most likely dispose of his property in a shorter span of time.

There are various reasons why a person may sell his home. The homeowner may want to gain financing for a new home, obtain an ample amount to finance the mortgage of the property that is up for sale, or just want to move to another place.

Homeowners who adopt the “For Sale by Owner” method of selling assume the role that is conventionally played by the bank or the mortgage firm. Such a process, when adhered to, is advantageous both to the seller and the buyer. Naturally, homeowners contact real estate agents who will handle the transaction for them. But when the homeowners administer the selling by themselves, they are able to save on commission costs and also provide a good package for buyers needing to purchase new homes but facing difficulties getting bank loans.

For innumerable reasons, many individuals find it hard to obtain bank loans due to the strict requirements imposed by these money-making lenders. They may have the funds ready in their pockets and have stable jobs to sustain the monthly payments, but they just find it hard to settle for a bank loan. With the sale of a home by the owner, the process gets much easier.

It is, therefore, not surprising why homes for sale by owners are highly coveted. If you are a seller, you save yourself a great deal of money because you never have to pay commission costs. If you are a buyer, you can buy a house and lot without the terrible burdens of tremendous bank interests.

Rent is a waste of money, or is it? That’s what we’ve been conditioned to believe for the last few generations. Even when the real estate market is more stable and prices are steadily increasing, buying a vacation home may not be the best decision for your wallet.

Should you buy a vacation home that you’ll only use a few months a year? Let’s take a look at a simplified example to highlight what it costs to own a vacation home. You purchase a vacation home, and the monthly costs including mortgage payment, real estate taxes, insurance, HOA, or other maintenance and utilities are $3,000 a month. You use the home for three months a year, although you’re paying for 12. So, you’re paying $3,000 a month for 12 months or $36,000 a year and using the home for three months at an effective cost of $12,000 per month ($36,000/3). You could seasonally rent a similar home in the same area for $4,000 per month or $12,000 for the season. You’d be paying $24,000 extra a year owning the home versus renting it ($36,000-$12,000). Over five years, you would have spent $120,000 more to own the home ($24,000 x 5 years). Yes, the home might appreciate, but you would have to subtract buying and selling closing costs and a potential real estate commission from any appreciation.

Let’s say you purchased a home for $400,000 plus $8,000 in closing costs for a total initial investment of $408,000. Let’s assume it increased in value 5% a year (higher than normal market conditions). It would be worth about $510,500 at the end of the fifth year. If you sold the home and subtracted a 6% commission and $8,000 in selling closing costs you would net about $471,900. Your approximate profit would be $63,900, but remember you would have spent an extra $120,000 to own instead of to rent the home for those five years which would actually mean you spent $56,100 more overall (-$120,000+$63,900).

Keep in mind that the home might have needed repairs and renovation work, which would have added to your cost as a vacation homeowner. You would, however, pay off some of your mortgage balance which would be a benefit of owning versus renting. But, know that during the first several years of a 30-year mortgage, typically 75% – 80% of each mortgage payment is interest and not principal repayment. You may also be able to deduct the mortgage interest on this second home, but the bottom line is for this vacation home, the overall financial costs would be greater than the benefits.

Every situation is different, but now you have the tools to conduct your own financial analysis. Sometimes it makes financial sense for you to buy versus rent a vacation home, and sometimes there are non-financial reasons to influence your decision. It is, however, better to make a big financial decision with your “eyes wide open” rather than with blinders on. You may avoid financial disappointment or hardship later.

Please note that all information contained within this article is educational and should not be interpreted as financial advice. For advice that is specific to your needs and circumstances, you should consult a financial or tax adviser.

When it comes to finding an assisted living facility or senior housing for an older adult, the decision maker is normally one of two people; the older person themselves, or a close family member, such as a son or daughter. The selection of a nursing home is one of the biggest decisions you can make, as it will probably serve as the last place an older family member will live. The adjustment is a big one; going from a normal home with all of the freedoms, privacy, and features to an assisted living center can be tough. The way to best sell your nursing home, though, is to try and make it as much like home as possible, by providing all of the amenities and entertainment features that an older adult might have had previously. One way many centers have elected to do this is by ordering a bulk DirecTV service for nursing homes.

First, what is bulk DirecTV? Such a service makes use of the programming offered by satellite television company DirecTV, but at a price that is more cost-effective for a facility with dozens of rooms to purchase. When a nursing home orders from a company that offers these bulk TV services, they’re able to pick out the specific channels they’d like to offer their residents, and can get each channel at a wholesale price per unit, as opposed to paying a traditional cable bill for each room to have access to the programming. Bulk DirecTV can also provide special features to organizations like nursing homes; for instance, special community information channels, music channels, and more. Depending on the company you work with, you could also gain some additional perks, like a DirecTV Upgrade system, which gives you the ability to add new channels for residents who request them, as well as an in-facility move theater setup.

This is just one step of a few you should take to make your nursing home feel as welcome and hospitable as possible to potential residents. Those who are considering their options for an assisted living facility will have many to choose from, and being the one that provides the most home-like experience and makes the transition as stress-free as possible for an older resident can benefit from doing so. If you provide the same television experience as a senior might have had in their original home, that could go a long way in having your facility be the one they choose.

With Michigan’s economy seemingly forever flagging the rest of the Nation, how to purchase foreclosed homes in Oakland County Michigan has been gaining interest among real estate investors.

There are several methods real estate investors can employ when deciding how to purchase foreclosed homes in Oakland Country Michigan.

We will discuss these here.

First, you can bid on a home when it is being auctioned off at the sheriff’s sale.

Here’s how this works.

When a homeowner misses 3 consecutive mortgage payments they will be in preforeclosure. At this point, their mortgage lender (bank) will pass their info to an attorney who will file the mortgage default information once a week for 4 weeks as public information in a paper called the Legal News.

28 days later, the home will be auctioned off at the local county courthouse steps to the highest bidder. So if you go to bid, you will be competing against other investors and also an agent for the bank, who will also bid on the home to make sure it doesn’t sell for a ridiculously low amount.

If the agent bidding on behalf of the bank wins, the property will be called an REO (Real Estate Owned). This is just a term used to denote a property that has gone through foreclosure and that was taken back by the bank.

Before you decide to learn how to purchase forclosed homes in Oakland County Michigan, you may also want to consider learning the short sale investment strategy.

This is a strategy in which you try to buy the defaulted mortgage note before the foreclosure auction.

Here’s how it works.

You contact the homeowner facing foreclosure and present yourself as an investor who may be able to help their situation. You’ll need the homeowner’s approval.

You will then contact the loss mitigation department of the homeowner’s lender and try to negotiate a discount on the defaulted mortgage. You will make the case for the homeowner’s hardship and why the homeowner will not be able to make payments on the mortgage. You will try to show how the property has flaws or other problems that will make the bank think about taking it back as an REO after the foreclosure auction.

If the bank accepts your short sale offer, you will basically create instant equity. For example, say the distressed homeowner owes $200k on the mortgage and that the home is worth only $195k. If you could negotiate a short sale for $150k, you’ve just created 45k in equity.

You will also be helping the distressed homeowner because they will get to avoid the foreclosure and the damage to their credit that this event would case. Of course, they’ll have to move out of the home since you will be the new owner, but they would have had to move out anyway if it went through foreclosure and the redemption period ended.

How to Purchase Forclosed homes in Oakland County Michigan

Another example of how to purchase foreclosed homes in Oakland County Michigan is to try to buy the property from the bank when it’s become an REO.

After the bank takes the home back after the foreclosure (assuming it is the highest bidder at the auction) they will now have a “non-performing asset” on their books. Banks don’t like non-performing assets for several reasons.

One reason is because the bank is in the business of lending money and making money on interest, not from holding real estate. Second, Federal Law requires that the bank have a certain amount of cash reserves on hand for every dollar of “non-performing asset.” This means that for every dollar of bad debt the bank has on its books, it has an opportunity cost in the form of “good money” that can’t be loaned out until that bad debt is eliminated.

In short, this costs the bank money.

Lastly, banks, being publicly traded entities, suffer when they have too much bad debt on their books. Their stock price suffers as a result. The faster banks unload their bad debt from the books, the better their stock prices will be.

So, if you can get a hold of REO lists, either through a mortgage broker, or through networking with other real estate investors, you can make offers on REO’s that banks hold. Some investors can pick up REO properties from banks for 40 to 50 cents on the dollar.

In summary, being an educated real estate investor on how to purchase forclosed homes in Oakland County Michigan can lead to big profits.