All Forum Posts by: Brian Nostrant

Whether you currently own a home or are thinking of purchasing one, you may be looking for ways to build equity. Home equity is the overall difference between the amount you owe on your mortgage loan and your home's market value. Home equity can be used to take out a loan, invest, build long term wealth or sell your home for more than you owe and keep the profit.

The equity you have access to will increase as you make payments that pay off your mortgage balance. It can also grow when your home's value increases. The following details five of the quickest ways to build home equity.

1. Make a Larger Down Payment
The simplest and quickest way to build equity in a home is to make a large down payment when you first buy the property. The down payment you make is immediate equity. Let's say that you're buying a home for $200,000. With a $10,000 down payment, you'll owe $190,000 on the mortgage and have $10,000 in equity.

If you can afford it, you could instead choose to make a down payment of $40,000, which means that you would owe $160,000 on the mortgage and have $40,000 in equity when you first move in. Keep in mind that a 20% down payment will also remove the private mortgage insurance requirements for conventional loans, which is an added benefit.

2. Make Mortgage Payments More Often
Only a percentage of the mortgage payment you make each month is put towards the principal of your house. The remainder of the payment goes towards interest and taxes. When you make additional payments or provide a payment that's higher than the minimum amount, you are putting more money toward the principal and increasing your equity.

3. Consider a 15-year Mortgage
If you take out a 15-year mortgage as opposed to a 30-year one, your monthly mortgage payments will be significantly larger. When you take this approach, you’ll be paying off more of the principal each month, which will help you build equity quicker. You'll also pay less interest over the course of the loan.

If you've already purchased your home, you could decide to refinance the mortgage loan, which would allow you to switch from a 30-year loan to a 15-year option and build equity faster. Make sure that you can afford the higher monthly payments before choosing this solution, and make sure you take current interest rates into account as well.

4. Invest in Home Improvement and Remodeling Projects
You can also build equity in your home by investing in home improvement and remodeling projects that will increase the home's value. The most popular renovations include kitchen and bathroom remodels. Make sure that you select projects that will get you the best return-on-investment (ROI). Reach out if you want to discuss projects with the highest ROI in our area.

5. Use Gifts and Windfalls
Consider building equity by using any gifts or windfalls you receive to pay down the balance of the loan. Do you receive birthday or holiday gift cards? If so, these can be converted to cash and added to your mortgage payment. The same is true of any inheritance you receive.

Building home equity gives you financial security and allows you to prepare for your future. By making a large down payment, paying more money each month, and improving the quality of your home, you can build equity relatively quickly.

Tips for a Successful Yard Sale

Yard sales are a great way to convert items that you hardly ever use into cash that can be saved, donated, or put towards a large purchase. However, a successful yard sale takes a considerable amount of preparation and planning. Here are some tips on how to hold a great yard sale.

Set a Goal
First, it's a good idea to think about why you want to hold a yard sale. Are you hoping to generate income or use the sale to get rid of items you're no longer using? Having a goal in mind can help you decide what to sell, how to price your items, and how flexible you want to be with hagglers.

Choose the Right Date
The best days to host a yard sale are usually Friday and Saturday. Consider the first Friday or Saturday of the month, after most people receive their paychecks and have more money to spend. Try to pick a date and time when you expect the weather to be mild and dry. You can’t predict or control the weather, but you can do a little internet research to see which weekends have had the best weather historically.

Price Out Items as You Gather Them
To avoid rushing, don't price everything on the day before the sale. As you are collecting items to sell, you can create a comprehensive price list or go ahead and label each item with a price sticker. When pricing each item, think like your customers. They want every item to be at a steep discount.

Properly Advertise Your Yard Sale
Hang flyers and post online ads about the sale a couple weeks before it begins. You should also inform the people you know on social media a few days before the sale. Highlight any sought-after items that will be available in your sale, which can include furniture, specialty tools, collectibles, and toys. Make sure that you include the date and time of the sale as well as your full address.

Complete Preparations Early
In the week preceding the sale, gather as many tables as possible. If your friends or family can lend you a table, call them to ask well ahead of time. You should also have a cash box on hand with a wide variety of bills. Some additional items you may need include:

Batteries
Extension cords
Light bulbs
Calculator
Chairs
Cooler with drinks
Hand sanitizer
Pens
Receipt book
Sold tags
Paper or plastic bags

Make Sure All Items are in Good Condition
Every item you're selling should be in good, usable condition. Make sure that you include working batteries in electronic devices and pump air into any basketballs or soccer balls. Have someone on hand during the day to rearrange items and fold clothing so everything looks tidy and well cared for.

As long as you choose the right date, properly advertise the sale, and prepare for the event, you should avoid most of the problems that can occur when hosting a yard sale.

0 Votes

Gallatin County, Montana

How to Prepare for Spring Selling Season

Spring is believed to be the busiest season of the year in the real estate market. For sellers, listing in the spring provides an opportunity to take advantage of the notable increase in buyer demand. As for buyers, there's much more inventory to select from in the spring. Here are a few tips on how to prepare for the spring selling season.

How to Prepare as a Buyer
Once the spring season rolls around, you'll discover that there are more homes to choose from, which increases your chances of finding your dream home. However, the competition among other buyers will also be stronger, which is why preparation is necessary.

First things first, find out how much you can afford and get pre-approved. Your lender can run the numbers and help you determine what you can afford. Don’t have a lender? Ask me for a referral. Having a pre-approval letter ready when you start looking for homes means you are prepared to make a strong offer when you find the right home.

Next up, figure out your requirements. Before the spring season arrives, research local neighborhoods, schools, and amenities to determine your areas of interest. Then make your wish list. Start browsing homes online, and pay attention to the details, so you can make a list of all the features you do and don’t like. By narrowing your search early on, you'll have a better idea of what you’re looking for, and you can avoid wasting time and energy visiting properties that don’t meet your needs.

How to Prepare as a Seller
If you've decided to sell your home, your main goal when preparing for the spring season is to get everything ready for the listing and home-selling process.

First up, price it right. Your should work with a realtor (yours truly!) to discuss your selling timeline and determine the right price for your home, so that your home doesn’t sit on the market too long or sell for too little.

You should also have your home professionally photographed to attract more buyers to the listing. Make sure it’s clean and tidy before those photos are taken. Nothing is more unappealing to buyers than a cluttered and messy property. Cleaning and decluttering your home now will prepare you for showings later. Minimizing the number of photos, toys, and other personal items in your home also makes it easier for buyers to envision themselves living there.

Consider cleaning the exterior as well. Your home's exterior is the main source of its curb appeal. You can boost your home's curb appeal by planting flowers, trimming shrubs, and removing leaves and debris.

How to Prepare if You're on the Fence
If you're on the fence about buying or selling a home, you should conduct ample research before the spring selling season arrives. Even though spring is a busy season, it's not the only time of the year when you can buy or sell a home. Consider your financial situation and think more about what you want in the near future. Reach out and we can talk about what makes the most sense for your situation.

Once the temperatures warm up and the scenery becomes more picturesque, the real estate market also begins to heat up. Whether you want to buy/sell or are currently on the fence, preparing for the selling season now should help you avoid feeling rushed when it gets here.

House Hunting with Pets

Nearly 68% of U.S. households own pets. Pets share our living spaces and sometimes run our lives more than we’d like to admit, so there is a lot to consider when shopping for a new home that you will share with your furry/scaly/feathery friend. Here are some tips for house hunting with a pet in mind.

Inform Your Agent
The first thing you need to do is inform your real estate agent about your pet and what home features are important for your specific pet. That way your agent can inform you of any local ordinances or restrictions, and they can help filter your home search to properties and neighborhoods that are pet friendly.

Consider Outdoor Space
If you have a pet that enjoys the outdoors, you should pay close attention to several home and neighborhood features when looking at homes.

Yard - Does the yard size give your pet enough room to roam? Do you have easy access to the yard, i.e., will it be easy to let your pets in and out? If the home has a pool, it should come with a gate or cover. Is there any vegetation that would be harmful to your pet? How are the sightlines - can you see your yard from your kitchen or living room?
Fencing - Does the yard have a fence? How high is it (for jumpers)? How private is it (for barkers)? Do the gates properly latch? If there is no fence, how much would it cost for you to install one for that lot size?
Neighborhood - Are there any busy roads nearby? Are the streets well lit? Are there sidewalks, parks, or other suitable walking areas nearby? If your dog gets loose or your cat likes to prowl at night, will they be safe?

Check the Rules and Guidelines
If you intend to search for a home in a neighborhood that's managed by an HOA, you should identify what guidelines they have in regard to pets. It's possible that there will be a limit on the size or number of pets that can be in one household.

When rules are in place, violations can result in substantial fines, which is why it's best that you find out this information before making an offer. Many communities are pet friendly and include on-site services that are beneficial for pets.

Consider Interior Features
The interior of the home you're interested in should also be considered. For instance, does the house have a bay window or large window ledges where a cat can sit? Does the bathroom have a shower or tub that will accommodate pets for baths/grooming? As for flooring, carpets will stain easily and attract pet dander and fur. Hardwood and tile floors are preferable.

Numerous factors will play a role in your final decision when searching for the right home. As long as you inform your realtor and make sure that the neighborhood doesn't have restrictive rules against pets, you should be able to find a home that your pets love.

0 Votes

Gallatin County, Montana

Under Colorado fair housing law, it is illegal for any mortgage lender to discriminate against any person in the terms, conditions, or privileges pertaining to any housing because of disability, race, creed, color, sex, sexual orientation (including transgender status), marital status, familial status, religion, national origin, or ancestry or source of income.

If she meets your requirements in every way as you stated, you can't deny her. And why would you?

1 Vote

Denver, Colorado

No. Not worth it, not necessary . Find an established , reputable agent who understands the business that you want to pursue and make them a part of your team just the same as an accountant or attorney . You should be focused on analyzing and funding deals, not worrying about contracting and scheduling. Best,
Brian

6 Votes

Are you looking good to invest the full amount, dollar for dollar, or a re you looking to break the $5m into down payments on a larger number of properties? Very different scenarios and strategies .

Best,
Brian

0 Votes

Excellent work! Sustainability and environmental awareness need to always be on the top of our priory list in any project. Congrats!

1 Vote

@Victor Vazquez, your willingness to be creative and put your short term comfort second to earning income is going to lead you to a very wealthy future. Ignore the comfort bound critics, they'll be glued to your success story posts in a very short while.

3 Votes

Hey Dennis,
Welcome to BP! I just looked at a multi-unit deal in P-burg a couple weeks ago . Great, up and coming area for sure. I am always interest in meeting folks in western MT with real estate investing interest. I'm up and down the road between Bozeman and Missoula regularly , maybe we can get together for a cup of coffee one of these days.

Best,
Brian

0 Votes

Hi Richard,
I'm sure that there will be a hundred opinions on this. In the markets where I focus, there just is not enough money, in even the very best of deals, to hire a General Contractor on any investment deal. I am, and have been for the better part of 30 years, a GC, also owning many properties and developing / selling personal and client projects. I can say with much certainty that projects where I am hired as a GC by an investor, that I am the only one to make a desirable profit. If you want to be in for the long haul, you will need to develop your own pool of quality, dependable subcontractors and learn the game of GC'ing for your self. The good news is that it is not rocket science!

Good luck,
Brian

3 Votes

Hi Ester, after trying many programs and methods for project tracking, scheduling and accounting, over my 30 +/- years in the construction industry, I have come to really appreciate the detail and simplicity of Builder Trend. www.buildertrend.com . Good luck!

Best,

Brian

1 Vote

All Forum Posts by: Brian Nostrant

Brian Nostrant has started 4 posts and replied 15 times.

Post: MONTANA REAL ESTATE NEWS

Post: SW Montana Housing Update

Post: Would you rent to a stripper??

Post: Do I really need my real estate license?

Post: What's the best investment strategy with 5 millions cash

Post: Big Win! Aldersgate Closing

Post: house hacking

Post: Investor from Montana

Post: Hiring a GC vs Subbing work out yourself

Post: Best software to track rehab project