California Loan Officer Shares Tips for First Time Home Buyers

The difference between someone owning and renting is simple, it’s in the preparation.

I’m sure you know someone who tried buying a home but was not able to qualify. They usually go on another 3-5 year renting phase because, well, life happens. The worst part is, they will probably try to buy a home again… but fail.

 

Alternatively, you probably know someone who purchased a home and thought to yourself, “How the hell did they do that?” Well I’ve got the answer for you, they prepared.

The interesting thing about homeownership is that no matter your circumstances, there is likely a program for you. Education and preparation become the key. The person that purchased, regardless of their circumstances, met with a professional who gave them a step by plan to home ownership.

The Market Today

The market today is fueled by low mortgage rates as well as job and wage growth. These factors have been driving demand and enticing new players to get into the market. Millennials and first time home buyers are looking to get in on the action.

However, most are finding that the road to homeownership can be complicated and requires being financially prepared. If there is anything you take away from this article it should be this.

The worst thing that can happen to a motivated buyer is rejection. Flat out rejection, without any explanation, will turn a motived homebuyer into a lifelong renter.

Here are my tips for first time homebuyers:

  • Monitor your credit score! Please pay your debts on time. Most banks look for a minimum 620 FICO score.
  • Keep your debts low. High credit card debt and student loans will hold you back from being able to buy something you like (debt to income ratio).
  • Have open lines of credit! You do not want to be a credit ghost. I recommend having at least 2-3 lines of credit open for at least 6 months before purchasing.
  • Plan accordingly for purchase costs. Down payment and closing costs are usually the most difficult money for first time homebuyers to get together.
  • Have a ‘bigger picture’ mentality. Know that your first home will not be your last and that it has the potential of making you lots of money.
  • Find out how much house you can afford! Speak to a professional to get an idea of where you are financially and what that means for your purchasing power.

As mentioned earlier, homeownership begins with preparation. Finding out how much house you can afford starts with looking at your finances and talking with a professional. Once you’ve figured out a price point that suits your budget, you can begin to get the tips mentioned above in order to ensure a smooth home buying experience.

Educating yourself about program requirements and taking the time to find the right home are absolute musts. Again, do not try this alone! You don’t want to be a lifelong renter that never owns an asset that has the potential to change your life. Your success depends on your ability to prepare. Benjamin Franklin said it best, “By failing to prepare, you are preparing to fail.”

Interested in homeownership? Let’s prepare! For more information please visit kendellangeles.com or hit me up in the comments below.

Thank you for reading this article! If you found this information helpful please like, comment, and share. See you next time.

 

Keep Going,

Kendell Angeles

How to Lower Your Monthly Mortgage Payment in Today’s Market

P.S. the market is on your side…

Since publishing this article, I’ve received a lot questions regarding the current state of the real estate market. They sound like this:

And the list goes on and on.

However, there is a common theme in all of these questions. Everyone is concerned about making/saving more money. Ever since the crash of 2008, the general public has become more skeptical and therefore more aware of the current state of the economy.

So, how do you maximize your dollar in this current state of economy? Well lets take a look at the current state of the US market.

According to the Bureau of Economic Analysis data:

  • The Dow and S&P 500 closed at fresh records Thursday (11/7) even after reports emerged of “fierce internal opposition” in Washington over a new agreement with Beijing to cancel tariffs in stages.
  • The Federal Reserve lowered interest rates by a quarter of a percentage point.
  • Wages and salaries, the largest component of personal income, showed no change in September after increasing 0.6 percent in August.
  • Personal income increased 0.3% in September after increasing 0.5% in August.
  • Real gross domestic product (GDP) increased 1.9 percent in the third quarter of 2019.

Although, the US market is solid, there are some key indicators to look at. The stock market just closed at record highs yet again this year. This indicates that large financial institutions and investors trust the current state of the US enough to continue to reinvest dividends into the stock market.

The Federal Reserve lowered interest rates by a quarter of a point again this year! In other words, they have made it even cheaper to borrow money. The Fed will tighten or loosen the ability to borrow money in order to stimulate the US economy. If you are in any current loan, it would be in your wallets best interest to look into your current interest rate.

The US market is in a position where it is cheaper than ever to buy or refinance big assets. Real estate owners know how important it is to leverage the banks money at a cheaper price and are refinancing current property holdings. This is saving them hundreds of dollars a month!

Whether money is tight or not, your mortgage payment is most likely the biggest bite out of your paycheck.

Here are some ways to lower your monthly mortgage payment:

  • Refinance the loan to a lower rate
  • Eliminate mortgage insurance (PMI)
  • Apply for a loan modification
  • Refinance to a longer term
  • Get your home’s tax assessment redone
  • Increase your credit score

There is more than one way to lower your mortgage payment. In order to determine the best option for you, decide whether you need a temporary or long-term solution. Then, speak with a professional about the pros and cons before moving forward.

Thank you for reading this article! Leave a comment below if you have any questions. If you found this information helpful please like and share. For more information please visit my site kendellangeles.com thank you!

Keep Going,

Kendell Angeles

Become a Real Estate Investor With Very Little Money Down!

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Rent = Melting Money

If you are like most people I talk to on a daily basis, then you believe you need 20% down to purchase your dream home. NOTHING could be further from the truth! If this information is holding you back from owning a home, then please continue reading this article and I will tell you exactly how to get your home with very little money down.

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In this article, I will be highlighting some of my favorite real estate billionaires. I’ll point out some of their most impressive real estate holdings. In a later article I will point out why these people decide to invest in such incredible properties. Let’s get started!

Buy a home as a primary residence.

VA & USDA Loans​

You can purchase a home to live in with zero down, using VA and USDA financing programs. If you’re a Veteran then you’ve probably heard about VA home loans. This mortgage program is the greatest benefit provided to our Nation’s Veterans. These loans are not just for first-time buyers, veterans can use a VA home loan multiple times throughout their life-time.

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usda-loan-requirements

USDA loans are available to home buyers with low-to-average income for their area. They also offer 100% financing with reduced mortgage insurance premiums, and feature below-market mortgage rates. USDA home loans are putting people in homes who never thought they could do anything but rent.

The down payment and credit score requirements for a primary residence are less stringent than conventional financing options. Although I do recommend having some money in reserve at all times, it is definitely possible to get started without much money in savings. 

FHA Loans

FHA stands for the Federal Housing Administration, which is a government agency. This loan was designed to allow more first-time home buyers to qualify for home loans by allowing for lower credit scores and lower down payment requirements.

FHA loans only require 3.5 percent down payment! Many conventional programs require down payments ranging from 5 percent to as high as 20 percent.

fha-loan-benefits

For example, if you are purchasing a $200,000 home, a conventional loan will require 5 percent down, or $10,000. With an FHA loan, at 3.5 percent down, the down payment would be $7,000 for a $200,000 home. 

Everybody has different circumstances and goals!

Each home buyer has a unique set of circumstances and goals that will impact the type of loan that works best for them. Please make sure you work with a professional lender that spends the time to educate you so you are able to choose the best loan for your situation.

If you found this information helpful please like and comment below. For more information on all loan products mentioned here please visit kendellangeles.com and apply for a mortgage loan today.

Keep going,

Kendell Angeles

From Renting to Owning the Hood! #mogultalk

mogul-talk

Major key alert!!!

What do P. Diddy, Usher, Jay-Z, DJ Khaled, and Nipsey Hussle have in common? If you said that they all make music you are correct! However, there is more to them than just making music. All of these very wealthy men started from the bottom. Music has allowed them to make more money than they even knew what to do with. But they will tell you, that it is a blessing as much as it is a curse. As the honorable Notorious B.I.G. said,

Mo Money Mo Problems

Jay-Z turned himself into a mogul billionaire by investing wisely from the very beginning of his music career. It is only fitting that Jay would then rap about his wealth creation formulas in his music. In the song, “The Story of OJ” Jay gave us some of his best financial tips. It’s safe to say Jay is taking the mentoring approach to fellow rappers by rapping about controversial topics as well as speaking on savings, investing, and personal vulnerabilities through his music.

It makes some people uncomfortable to talk about money and investments but the dialogue is necessary for a community that is fighting to make gains every day.

young-jay-z

I told him, “Please don’t die over the neighborhood. That your momma rentin’

Take your drug money and buy the neighborhood. That’s how you rinse it”

Black people, as a collective, don’t own enough real estate but more importantly they don’t own enough businesses in their communities. They don’t own the corner stores, the laundromats, the local restaurants, or bars, yet they consume the most in their neighborhoods. It may be difficult at first—saving, finding viable properties, etc.—but it is possible for black people to reinvest in their neighborhoods. It simply requires deliberate action. This information goes out to all races and nationalities. Also, if you still haven’t heard the song, click here.

According to Forbes, Jay’s net worth today comes from his Champagne brand Armand de Brignac (worth an estimated $310 million), cognac brand D’Ussé ($100 million), music streaming service Tidal ($100 million), sports and entertainment management agency Roc Nation ($75 million), ownership of the master recordings of some of his biggest hits, numerous investments, (including a large stake in Uber), and of course, an impressive collection of homes and valuable art to decorate them with.

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mogul-penthouse

2017 was a big real-estate year for the power couple, Jay and Beyonce. They dropped $26 million on a seven bedroom, seven-and-a-half-bathroom East Hampton mansion with a pond, a meadow preserve, and an 1,800-square-foot guesthouse on the New York property. They also picked up a palatial Bel Air spread for $88 million that year in California. Those pricey purchases are on top of their other reported holdings, a $2.6-million New Orleans mansion and a $6.5-million New York City penthouse.

nipsey-hussle

Nipsey Hussle made it clear that his objective was to lift up his community. Hussle was deeply concerned with South LA communities, and in both Crenshaw and Hyde Park made investments and philanthropic contributions that spoke to the diverse needs of residents — he not only had affordable housing plans in the works, but was coupling that development with affordable, healthy food access. He made sure basketball courts were paved for children to play, and then through Vector 90 — a technology co-working center and incubator also offering STEM education — made sure those youth would be able to find jobs and thrive in their local community.

It’s not just about what you can buy, but what you can build.

dj-khaled

Hussle also recognized that ownership was a critical component of setting the structural stage for communities to thrive. As L.A. City Councilman Marqueece Harris-Dawson noted to the LA Times, “He was investing in this part of town because he understood … if we ever wanted it to be in the condition it deserved, and for our people to be treated the way they deserved to be treated, we have to own it. There was no shortcuts to that.”

My key take aways from this article are to:

  1. Invest in your ecosystems.
  2. Start with what you know and grow from there.
  3. Build a legacy.

Investing shouldn’t just be about making as much money as possible, it should prioritize being able to hold your head high in your community — knowing that you were able to create wealth for others, while also supporting your own family and needs.

Thank you for taking the time to read this article. If you would like to contribute to this, please comment below. Also, let me know what you think about these entrepreneurs and if you would take their approach to wealth creation. If there is someone you would like me to talk about next, please leave it in the comments below.

Keep going,

Kendell Angeles

Billionaires on Forbes’​ 400 List Invest in Real Estate?

forbes-list-real-estate

The Forbes 400: The Definitive Ranking Of The Wealthiest Americans.

Now that’s a title, ‘The Definite Ranking Of The Wealthiest Americans’. I think it’s safe to assume we would all like to be on this list. The questions is how? How does the average American begin to build massive wealth like the people on this list?

The answer to this question is in this very list. If you take the time to read about anybody on Forbes’ 400. You’ll find a similar commonality. It all started with an idea.

Idea – any conception existing in the mind as a result of mental understanding, awareness, or activity.

In this article, I will be highlighting some of my favorite real estate billionaires. I’ll point out some of their most impressive real estate holdings. In a later article I will point out why these people decide to invest in such incredible properties. Let’s get started!

Donald Bren

  • Donald Bren is the United States’ richest real estate baron.
  • His Irvine Co. owns over 115 million square feet of real estate, mostly in Southern California.
  • His empire includes 550 office buildings and 125 apartment complexes.
  • Bren owns a 97% stake in Manhattan’s MetLife Building.
  • Bren attended the University of Washington on a skiing scholarship and spent three years in the U.S. Marine Corps.
  • The son of a real estate investor, Bren worked as a carpenter’s helper on his father’s buildings.
forbes-donald-bren-value

Following the success and acquisition of his first property development company in 1977, Bren, along with a group of investors, purchased a California-based real estate investment firm called the Irvine Company.

Within the first two decades, Bren grew the Irvine Company into a multi-billion-dollar real estate empire. Take a look at just some of the properties Bren and Irvine Company own and operate today.

forbes-jeff-bezos-value

Jeff Bezos

  • Jeff Bezos founded e-commerce colossus Amazon in 1994 out of his garage in Seattle. He remains CEO and owns a nearly 12% stake. 
  • He divorced his wife MacKenzie in July 2019 after 25 years of marriage and transferred one quarter of his Amazon stake to her. 
  • In 2018, Amazon had $230 billion in revenues and a record $10 billion in net profit, up from $3 billion the prior year. 
  • Bezos owns The Washington Post and Blue Origin, an aerospace company that is developing a rocket for commercial use.

Bezos opened Amazon.com, named after the meandering South American river, on July 16, 1995. In the months leading up to launch, a few employees began developing software with Bezos in his garage. Amazon.com sold books across the United States and in 45 foreign countries within 30 days. In two months, sales reached $20,000 a week, growing faster than Bezos and his startup team had envisioned. Amazon.com went public in 1997.

I didn’t think I’d regret trying and failing. And I suspected I would always be haunted by a decision to not try at all – Jeff Bezos

Mr. Bezos has a number of homes across the U.S. and is currently the country’s 25th-largest landowner. His U.S. Properties include several homes on over 10 acres of land on the shores of Lake Washington in Medina, Washington. Two neighboring houses in Beverly Hills, California. A former museum in Washington, D.C. Four linked apartments in a landmark Art Deco tower on Manhattan’s Central Park West. And over 300,000 acres in West Texas.

bezos-family-real-estate
forbes-400-list

There are so many amazing individuals I would like to go into more detail about but Mr. Bren and Bezos will do for now. Keep an eye out for my upcoming article talking about the advantages of owning real estate and why it is so beneficial to these high profile billionaires.

I hope you enjoyed this and are thinking of ways to create you real estate portfolio. If there is anyone you’d add on this list, please comment below! With hard work and dedication anything is possible!

Keep going,

Kendell Angeles