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You Don’t Need 20% Down To Own A Home In Boston

There are many would-be homeowners out there that have been misled about their ability to afford a home in Boston. We have some of the highest real estate prices in the country and the misconception that you can’t purchase a home without 20% down has led a lot of people away. Here are five mortgage programs that require significantly less out of pocket money.

Mass Housing Home Mortgage

Mass housing loans is a state-funded program to help homebuyers within Massachusetts. Mass housing allows buyers to purchase a home with a minimum of 3% out of pocket.  The big benefit of mass housing is that you do not pay PMI on these loans. The downside to mass housing, is that there are income qualifications and you do have to take a first-time home buyers course to be eligible for the loan.

FHA Mortgage Loans

FHA (Federal housing administration) home loan programs are probably the most popular throughout the country for individuals who are not capable of placing a 20% down payment. The FHA loan program allows for a 3.5% down payment and a minimum credit score 580. If you’re purchasing a home for $400,000 the down payment or an FHA loan would be roughly $14,000, opposed to $60,000 if 20% was required. You do however pay a little more for the ability to put less down. An FHA loan requires you to pay PMI (or private mortgage insurance). This is insurance the government makes you pay for not having a loan to value of 80/20. Once your home appreciates, or your debt is paid down to a point we are mortgage is 80% or less of your home’s value, you can refinance out of the FHA loan and remove the PMI requirement. Another positive of the FHA program, is that it allows family members to help you contribute to your down payment.

203K HomeLoans

A 203k loan is similar to an FHA loan with an added bonus. The 203K loan allows you to borrow additional funds to make repairs to the property you purchase. For example, you can purchase a home for 300,000, and borrow an additional 30,000 for a kitchen and bathroom makeover.

5% Down Conventional Mortgage

There are also conventional mortgage programs that allow for a 5 to 10% down payment. There are no homebuyers courses,  income restrictions or PMI to pay, that you may receive a slightly higher interest rate.

VA (Veterans Administration) Home Loans

VA helps  Service members, Veterans, and eligible surviving spouses become homeowners. VA does not require a down payment to purchase a home. If your income qualifies you can finance 100% of the cost of your home.

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Real Estate Investing Isn’t For The Short-Sighted

Real estate has made more millionaires in the United States than any other investment class. So why doesn’t everyone invest in real estate? Simple answer. Real estate investing is not for shortsighted individuals. It’s a marathon, not a sprint. It takes patience, dedication, commitment, and hard work over a long period of time to be successful in this business. Unlike the stock market, real estate doesn’t appreciate overnight. You tends to see the benefits (appreciation, cash flow & debt reduction)  slowly year-over-year, but with a lot more consistency and stability than the stock market.

We live in a world where people are addicted to instant gratification. If they can’t have it today, tomorrow or this week than it doesn’t interest them or hold their attention. That’s not the way it works with real estate investing. You have to be able to think long-term. You have to be able to make a few sacrifices today to live a better life in the future. You have to be able to look 10 – 20 years down the line and say “this is the life I want to live and real estate can get me there”. Most people never stop to think about where they will be or what they’ll be doing 10 years from now. Will you?

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Choosing A Real Estate Investing Partner? Consider These Factors 1st

Real estate can be expensive, a lot of work, and difficult to acquire. Partnering with another investor can be an excellent way to break into the business or continue your portfolio growth. But before you grab just any partner, here are four factors you must consider.

What are your timeline?
When investing in real estate with a business partner important consideration is your investment time. For example, if you are age 55 and investing for cash flow to supplement your retirement, while partnering with someone age 35 who is investing for long-term appreciation and portfolio growth, this partnership may not work out. You may be looking to sell the property and cash out in 10 years while your younger partner may be looking to hold on a bit longer. Not to say that you can only invest with people your age, but this is definitely a discussion you should have from the start of your venture. Even business partners of the same age should have the timeline discussion.

What are your investing goals?
Are you investing for cash flow or appreciation? Are you looking to invest in the city or suburbs? Locally or out of state investments? Are you looking to be active or passive with your rental property? Are you looking to buy a couple properties or build a large portfolio? These are some of the questions you and your potential business partner should ask each other before putting a deal together. If you, for instances, want to self manage a couple multifamily homes, while your potential partner wants to purchase a 50 unit building in a neighboring state, there is going to be a disconnect down the road.

Is this an ethical person?
There are a lot of choices to make when dealing with investment real estate and you must know that your partner is making decisions that are ethical, moral, and within the law. Is he or she creating a win-win when dealing directly with a seller? Does he or she avoid discriminatory practices when dealing with tenants? Is he or she truthful when dealing with loan officers? The things your partner does or doesn’t do will directly affect real estate and relationship you have together.

What do each of you bring to the table?
Experience, cash, and time are the three big factors that any one partner can bring to the investment table. You may have one partner who has years of experience investing in real estate, but lacks the additional investment capital for the current deal. If you partner this individual with someone who has cash and wants to learn more about the business, this may be a match made in heaven. What are your strengths and weaknesses? What about your potential partner? Have this critical conversation early on in the process. One person brings significantly more to the table than another partner, this doesn’t necessarily mean the partnership won’t work. Maybe the equity ownership within the property is divided accordingly.

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Dear Boston Landlords : Here’s How To Find Well Qualified Tenants

If you’re a landlord in the Boston area and you have a vacant unit currently or becoming vacant in the coming months, myself and the Mandrell Company would love to help you fill that vacant unit with a qualified tenant.

We do so completely free. There is no cost to you the owner or landlord. We start off by advertising your rental unit for lease. We help you show the apartment so you are not using your valuable time standing around waiting for potential tenants. We take care of that for you as well.

Once we find an applicant who we feel is qualified, based on the criteria that you’ve presented, we then do background checks, credit checks, employment verification and several other background checks to make sure that that person is qualified and they are who they say they are.

Once we gather all that information we then present you with a full package on that tenant. If you deem that tenant qualified and the person that you’re looking for we move forward with the lease signing process and if not we put the unit back on the market and proceed to find another qualified tenant.

We also, again, assuming the tenant is qualified, draft the lease for you, collect all the first month fees, security deposits and anything else that you were asking for and then assist you and the tenant through those first few days of keys, lease signing and various other things that need to be taken care of at the time.

If you do have a vacant unit, if you are looking to fill a vacancy we would love to work with you. You can contact us at 617-297-8641. You can also reach us at contact@mandrellco.com. We look forward to working with you. Thanks.

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