Indy Investor Magazine July 2014

ndystor Magazine IInve

July 2014

Ask the Editor:

A N W O AN C U O Y M OW A H R G T O U R O P N W FIND O D 0 0 1 $ H T I W E M O H D HU

We’ve just sold our large home and want to buy a condo for about $160,000. Is paying cash a good idea?

Page 18

r a n i m e S g n i n i a r rkhof T e K l D e a h U c i H th Lisamarie Schmidt & M pm wi

:30 3 m a 1 1 • h July 18t Pg9

First Time Home Get on the Buyers, Investors 478125I 1

Social Bandwagon

with Atlantis Realty Want to know about properties coming soon before they are listed?

Follow us on all the local social media.

http://twitter.com/AtlantisRealty Check out these listings and our commercial properties on our website at www.AtlantisRealtyGroup.com.

2

1/11/12, 1:03:50 PM

RSVP for Tours at:

1-800-276-8940 ext 2 or bustour@atlantisrealtygrp.com

HUD Homes & Foreclosures Tour Here is your chance to view great deals on HUD Homes and Bank Foreclosures. Meet and talk with professionals such as lenders, appraisers, inspectors and contractors to learn about the home buying process and how to bid on properties.

IndyInvestorMagazine.com

What are QR codes?

The reason why they are more useful than a standard barcode is that they can store (and digitally present) much more data, including url links, geo coordinates, and text. The other key feature of QR Codes is that instead of requiring a chunky hand-held scanner to scan them, many modern cell phones can scan them.

They look like this: ____________

How does the cell phone read the code?

They come to us from Japan where they are very common. QR is short for Quick Response (they can be read quickly by a cell phone). They are used to take a piece of information from a transitory media and put it in to your cell phone. We use QR Codes in our magazine to see the virtual tour or website of a property. Once it is in your cell phone, it will give you details about that property or business.

The cell phone needs a QR code reader, which most of them are free from your app store. It takes literally 1 minute for someone with an iPhone or Android phone to find and install the reader

How QR codes work 1. The QR code is scanned by a device, in this case a smart phone.

2. QR code software on the phone analyzes the image and extracts encoded information.

AARON STECKELBERG • U-T

Sources: Open Mobile Alliance: Tech-faq.com

Lisamarie Schmidt

3. The decoded information - such as text, numbers or even website addresses - is displayed on the device.

FOR SUBSCRIPTION & ADVERTISING

Editor-in-Chief

Write to Indy Magazine at 8645 E 96th Street, Indianapolis, IN 46256.

Amanda Shoaf

To order a back issue: Send U.S. check or money order for $2.00

Chief Creative Editor

Contributors:

Mike Kerkhof David Heller Lisamarie Schmidt

Visit our website for more information: www.IndyInvestorMagazine.com Register for an online subscription for FREE or subscribe for a hardcopy delivered 12 issues for $24.00 online or mail us.

If interested in advertising in our publication call us at 1-888-765-3431 or email to lisas@atlantisrealtygrp.com for rates.

IndyInvestorMagazine.com

3

8645 E 96th Street Indianapolis, IN 46256 120 W. Branning Avenue Fort Wayne, IN

$19,900

BLC#21283211

3 Bedrooms, 1 Baths, 3,850 Sq. Ft. www.tourfactory.com/

4025 Richelieu Road Indianapolis

$49,900

BLC#21250029

4 Bedrooms, 1.1 Baths, 2,036 Sq. Ft. www.tourfactory.com/

421 S. Albert Avenue South Bend, IN

$18,900

BLC#21281604

2 Bedrooms, 1 Baths, 1,590 Sq. Ft. www.tourfactory.com/

4

4629 N 622 West Huntington, IN

$81,000

BLC#21290228

3 Bedrooms, 1.5 Baths, 1,414 Sq. Ft. www.tourfactory.com/

4213 N Sheidan Avenue Indianapolis

$24,900

BLC#21280238

3 Bedrooms, 1 Baths, 1,200 Sq. Ft. www.tourfactory.com/

4424 Greenhill Anderson, IN

$51,200

BLC#21282006

3 Bedrooms, 2 Baths, 1,400 Sq. Ft. www.tourfactory.com/1137081

IndyInvestorMagazine.com

110 W Adams Street Atlanta, IN

$20,500

BLC#21282995

3 Bedrooms, 2 Baths, 1,218 Sq. Ft. www.tourfactory.com/

2288 Salem Park Drive Indianapolis

$102,000

BLC#21282466

3 Bedrooms, 2 Baths, 1,627 Sq. Ft. www.tourfactory.com/1139438

320 N Keystone Indianapolis

$600/mo.

BLC#21279929

3 Bedrooms, 1 Baths, 1,289 Sq. Ft. www.tourfactory.com/

8645 E 96th Street Indianapolis, IN 46256 2606 Spring Street Fort Wayne, IN

$339,900

BLC#21298875

3 Bedrooms, 1 Baths, 2,585 Sq. Ft. www.tourfactory.com/

7085 Blue Ridge Drive Noblesville, IN

$150,000

BLC#21294019

4 Bedrooms, 2.5 Baths, 2,600 Sq. Ft. www.tourfactory.com/1167692

702 Delbrook Drive New Whiteland, IN

$69,350

BLC#21287661

3 Bedrooms, 1 Baths, 912 Sq. Ft. www.tourfactory.com/1151498

810 Liberty Street South Bend, IN

$18,900

BLC# 21281599

2 Bedrooms, 1 Baths, 700 Sq. Ft. www.tourfactory.com/

2439 Meridian Street Anderson, IN

$27,300

BLC#21291951

3 Bedrooms, 1 Baths, 1,545 Sq. Ft. www.tourfactory.com/1158092

1030 N Dequincy Street Indianapolis

$27,900

BLC#21288906

2 Bedrooms, 1 Baths, 2,080 Sq. Ft. www.tourfactory.com/

IndyInvestorMagazine.com

429 S Albert Avenue South Bend, IN

$18,900

BLC# 21281605

2 Bedrooms, 1 Baths, 2,064 Sq. Ft. www.tourfactory.com/

6323 Brush Run Indianapolis

$35,000

BLC#21276711

1 Bedrooms, 1 Baths, 1,254 Sq. Ft. www.tourfactory.com/1122176

2003 N Richardt Indianapolis

$995/mo.

BLC#21289133

2 Bedrooms, 2 Baths, 1,274 Sq. Ft. www.tourfactory.com/

5

Lunch & Learn - HUD Sales Training: “Successfully Selling HUD Homes in Indiana”

July 14th

& at 6935 Lake Plaza Drive Indianapolis

With the release of M&M III, there are many changes to HUD’s residential real estate program. For those that have sold HUD before they may notice many changes and for those considering HUD, now is the time to learn.The Successfully Selling HUD Homes class presents the dynamics of M&M III, the new bidding site and bidding periods and ultimately addresses everything from marketing to contract to close. HUD homes are becoming the predominant REO in the market and understanding the NEW process is the key to REO success now and into the future.

This class has been developed by PEMCO, Ltd. who is contracted by HUD to manage the sale of all HUD-owned properties. Classes are taught by either a PEMCO Employee or a trained contractor.

In addition to learning general information about HUD, its properties, and the HUD Sales Process, attendees will learn: • Who can buy HUD properties • How to market, advertise, and show HUD Homes • How to register with HUD • How to write a HUD Sales contract • How to navigate the HUD listing site • How “priority bidding” works • And Much More

How Our Process is Different

Client applies for financing and will get a preapproval whether they have a house picked out or not

(317)564-4906

Client “thin” file is submitted to underwriting and is qualified based on credit and income.

Final conditions will include satisfactory appraisal and title work.

While submitted, appraisal, title, inspections and processing verifications are completed.

Buyers and agent are informed of final underwriting conditions.

Final conditions are submitted and 24 hours later file is CLEAR TO CLOSE!

Final HUD prepared and closing takes place the next day.

Weekend and Evening Realtor Support!

We are your team! – Over 20 years of experience in both loans and customer service.

Imagine never having to call your loan officer to see where you are in the process –

NOBODY IS FASTER THEN GVC

Carla Jackson 317-796-3989

66

Happier clients – More Closings More Referrals

www.gvcmortgage-carmel.com

Yvette Wright 317-339-9339

IndyInvestorMagazine.com

8645 E 96th Street Indianapolis, IN 46256 12728 Braddock Lane Noblesville, IN

$1,400

BLC#21298324

4 Bedrooms, 2.5 Baths, 2,496 Sq. Ft. www.tourfactory.com/

2604 W SR 144 Franklin, IN

$135,000

BLC#21297228

3 Bedrooms, 2 Baths, 1,434 Sq. Ft. www.tourfactory.com/

259 W 44th Street Indianapolis

$69,900

BLC#21296471

2 Bedrooms, 1 Baths, 1,588 Sq. Ft. www.tourfactory.com/

816 S Kentucky Street Danville, IN

$900/mo.

BLC#21293801

3 Bedrooms, 2 Baths, 1,352 Sq. Ft. www.tourfactory.com/

7731 Mansfield Way Ingalls, IN

$87,000

BLC#21297443

3 Bedrooms, 2.5 Baths, 1,948 Sq. Ft. www.tourfactory.com/1176388

10008 Catalina Drive Indianapolis

$89,900

BLC#21296474

4 Bedrooms, 1.5 Baths, 2,465 Sq. Ft. www.tourfactory.com/

IndyInvestorMagazine.com

598 Northgate Drive Greenwood, IN

$1,095

BLC#21294506

4 Bedrooms, 2 Baths, 1,352 Sq. Ft. www.tourfactory.com/

2829 Cardigan Road Indianapolis

$65,000

BLC#21287455

3 Bedrooms, 1.5 Baths, 1,189 Sq. Ft. www.tourfactory.com/

9958 Montery Road Indianapolis

$750/mo.

BLC#21296694

3 Bedrooms, 1 Baths, 1,073s Sq. Ft. www.tourfactory.com/

7

Learn the in’s and out’s of how to bid & buy with the new HUD process.

NEW for M&M 3

Classes are held every month.

Call for Dates and Times.

“Successfully Selling HUD Homes in Indiana” Course Information: With the new introduction of M&M III, there are many changes to HUD’s residential real estate program. For those that have sold HUD before they may notice many changes and for those considering HUD, now is the time

Please RSVP

by replying to this email or Contact person: 800-276-8940 ext 2 Email: HUD@atlantisrealtygrp.com Instructor

Lisamarie Schmidt

to learn. The successfully selling HUD homes class presents the dynamics of M&M III, the new bidding site and bidding periods and ultimately address everything from marketing to contract to close. HUD homes are becoming the predominant REO in the market and understanding the New process is key to REO success now and into the future.

This class has been developed by PEMCO, Ltd, who is contracted by HUD to manage the sales of all HUD-owned properties. www.HUDPemco.com Highlights • Who can buy HUD properties

• How to register with HUD

• How to navigate the HUD listing site

• How “Priority bidding” works

• How to write a HUD sales contract

• And much More....

www.HUDHomestore.com Atlantis Realty Group Inc 6750 N Andrews Ave, Suite 2046 Fort Lauderdale, FL 33309 Phone: 800-276-8940x2 Fax: 866-469-4882 E-mail: HUD@atlantisrealtygrp.com www.AtlantisRealtyGroup.com

F 8

IndyInvestorMagazine.com

Successfully Selling HUD Homes in Indiana

By Lisamarie Schmidt, Atlantis Realty Group, Inc. From 11am-1pm

Lisamarie Schmidt

HUD & 203K Continuing Education July 18, 2014 • 11am-3:30pm at Moon Dog Tavern 4825 E. 96th Street Indianapolis, IN

Lunch served from 12pm-1pm

Financing HUD Homes

By Michael Kerkhof From 1:30pm-3:30pm

Michael Kerkhof

Receive 4 Hours of CE Credit and Lunch for FREE! Provide your License number for your certificate of completion.

For ttendees, please bring your business card as well as your license.

Questions? Please contact: Michael Kerkhof (317) 371-5079

Please RSVP. Seats are limited.

We look forward to seeing you!

AmAndA Kilby | 765-592-0215

Call TODAY for a quote!

$

gn esi ur ic D Atper ho rah ing l G rt 00 Al Sta

• Logo Design • Posters & Flyers • Brochures & Menus • Magazine Layout & Digital Magazines using Mag+ • Business Cards • Invitations • T-shirt Designs • CD & DVD Cases • Custom Calendars • Much, Much More!

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Fast Turnaround! High Quality Designs! Customer Satisfaction is GUARANTEED! IndyInvestorMagazine.com www.AtlantisRealtyGroup.com

9

8225 N Pennsylvania St. • Indianapolis

2434 Baywood Court • Greenwood

628 North Shore Blvd. • Franklin

3 Bedrooms, 3.5 Baths BLC# 21289726 $474,900

4 Bedrooms, 2.5 Baths BLC# 21283959 $257,500

3 Bedrooms, 2 Baths BLC# 21292515 $123,900

615 Morningside Drive • Zionsville

7822 EAgles Nest Blvd. • Zionsville

7153 Red Lake Ct. • Indianapolis

5 Bedrooms, 3 Baths BLC# 21291606 $269,900

3 Bedrooms, 2.5 Baths BLC# 21297743 $239,900

4 Bedrooms, 2.5 Baths BLC# 21291270 $128,000

BLC# 21214543

For Photo Indianapolis Too New1835 E 75th Street

284 E Broadway Street Greenwood

1160 N Bolton Indianapolis

4 Bedrooms, 1 Baths

BLC# 21286690

$37,900

8447 Ash Grove Drive Camby 4 Bedrooms, 2.5 Baths

BLC# 21263491

$145,000

3325 Lincoln Road Indianapolis

4 Bedrooms, 2.5 Baths BLC# 21267000

3 Bedrooms, 1.5 Baths

$86,400

BLC# 21295284

4220 Foxglove Trace Indianapolis 2 Bedrooms, 1.5 Baths

BLC# 21283537

$43,200

11541 Presido Drive Indianapolis 3 Bedrooms, 2 Baths

BLC# 21249203

$89,900

$129,900

438 S Palmyra Drive Indianapolis 4 Bedrooms, 2.5 Baths

BLC# 21293807

9046 Greenlee Indianapolis

4 Bedrooms, 2 Baths BLC# 21259033

$99,500

8854 Cardinal Flower Ln. Indianapolis 3 Bedrooms, 2.5 Baths

BLC# 21288253

6037 E Dewey Indianapolis

$108,900

2 Bedrooms, 1.5 Baths

$122,000

BLC# 21274894

7645 Center Street McCordsville 3 Bedrooms, 2 Baths

BLC# 21277802

$43,200

720 Third Street Shelbyville

2 Bedrooms, 1 Baths BLC# 21279623

$29,900

$57,200

8413 Bolero Camby

4 Bedrooms, 2.5 Baths BLC# 21266002

$128,500

1519 N Bosart Indianapolis

2 Bedrooms, 1 Baths BLC# 21291831

$22,000

10 6801 Lake Plaza Drive, Suite 112A • Indianapolis, IN 46220 • P: 317.578.3827 • F: 317.577.4484

$89,900

5790 Paradise Lake Rd. • Martinsville

10153 Cheswick Lane • Fishers

4 Bedrooms, 2.5 Baths BLC# 21293250 $239,900

4 Bedrooms, 2.5 Baths BLC# 21296976 $129,900

6548 S 25 • Trafalgar

3623 N Pennsylvania St. • Indianapolis

903 Beaumont Ct. • Indianapolis

4 Bedrooms, 2 Baths BLC# 21298079 $239,900 BLC# 21214543

6276 Cascade Circle • Indianapolis

3 Bedrooms, 3 Baths BLC# 21292858 $168,900

4 Bedrooms, 1.5 Baths BLC# 21298439 $173,500

4 Bedrooms, 2Baths BLC# 21285865 $134,900

$89,900

For Photo Indianapolis Too New1835 E 75th Street

515 E Howard Avenue Arcadia

5438 E 19th Place Indianapolis

2 Bedrooms, 1 Baths

BLC# 21288684

$47,700

7526 Brehob Road Indianapolis 3 Bedrooms, 1 Baths

BLC# 21297786

$69,900

1425 N Riley Indianapolis

5 Bedrooms, 2.5 Baths BLC# 21296238

2 Bedrooms, 1 Baths

$99,000

BLC# 21291950

4818 W Bertha Street Indianapolis 3 Bedrooms, 1 Baths

BLC# 21298920

$19,900

23 Gordon Street Shelbyville

2 Bedrooms, 1 Baths BLC# 21279855

$26,900

$40,000

5442 E 30th Street Indianapolis 3 Bedrooms, 1 Baths

BLC# 21298926

2216 W 59th Street Indianapolis 3 Bedrooms, 1 Baths

BLC# 21274022

$89,900

1234 N Linwood Indianapolis

2 Bedrooms, 1 Baths BLC# 21296294

202 Hoss Road Indianapolis

$50,000

2 Bedrooms,1 Baths

$14,900

BLC# 21285838

2303 Meadow Way Anderson 3 Bedrooms, 2 Baths

BLC# 21248913

$99,500

810 Miller Avenue Shelbyville 3 Bedrooms, 1 Baths

BLC# 21279805

$22,400

$77,000

456 N Berwick Indianapolis

6 Bedrooms, 2 Baths BLC# 21299006

$19,900

4558 N Banta Road Bargersville 4 Bedrooms, 2 Baths

BLC# 21287040

Chris Schlosser 317.523.3037 • chris@cmsrealestate.net || www.cmsrealestate.net

$137,900

11

Now is the Best Time to Protect Your Family with Life Insurance Monthly Premiums For.....

250,000 Death Benefits

Age

Female

Male

500,000 Death Benefits

Female

Male

25-35 $9.84 $10.72 $14.00 $15.75

36

$10.06

$10.94

$14.44

$16.19

37 38 39

$10.28 $10.72 $11.16

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40

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42 43 44 45

$13.34 $14.22 $15.09 $16.19

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$21.00 $22.75 $24.50 $26.69

$23.63 $25.81 $28.44 $31.06

46

$17.28

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$33.25

47

$18.16

$20.56

$30.63

$35.44

48

$19.25

$21.66

$32.81

$37.63

49

$20.56

$23.19

$35.44

$40.69

50

$21.88

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51 52 53 54

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$27.34 $30.41 $33.47 $36.97

$41.13 $44.19 $47.69 $51.63

$49.00 $55.13 $61.25 $68.25

55

$30.63

$40.91

$55.56

$76.13

56

$32.59

$44.63

$59.50

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57

$34.78

$48.34

$63.88

$91.00

58 59 60

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$68.69 $73.94 $80.50

$98.88 $108.50 $120.31

Free Medical Exam with Application Family and Children Plans Apply Online Donna Petri Call: 317-250-8126 or Email: donna@mvp-insurance.com 12

IndyInvestorMagazine.com

T f T K s S t A a

Utility workers caution that wipes in the pipes are clogging sewers. Sewers everywhere are stopped up and there is plenty of blame to go around from personal carelessness to faulty products.

For one thing, people think that any thin cleaning wipe or baby wipe can be flushed down the toilet. How wrong they are. Non-flushable cleanup wipes, baby wipes, and sanitary products must not be flushed down the toilet.

The reason is simply that, unlike toilet paper, these other materials do not dissolve. Instead they clog up the sewers, damage equipment, and cost cities and taxpayers a lot of time and money.

In one city, they had to hire a contractor to vacuum out a lift station and remove a truckload of cloth material. It’s happening all over the country.

The Association of the Nonwoven Fabrics Industry says researchers collected and analyzed materials from wastewater pumps and found that most items clogging equipment are not labeled flushable.

These items, experts suggest, should be more clearly labeled Do Not Flush.

Kimberly-Clark’s flushable Cottonelle cloths undergo extensive testing to ensure they are compatible with home and city sewer systems. However, some flushables do not comply.

Some companies have heavily promoted bathroom wipes, while some cleaning product manufacturers have also advertised sponges they say can be disposed of in a toilet.

A Consumer Reports test showed that toilet paper disintegrated after about eight seconds, but some wipes still hadn’t broken down after 30 minutes. They should never have been classified as flushable.

Remodeling?

Here’s what returns the most at sale:

Mon

eyw

ise

Remodeling projects make life more pleasant and more beautiful.

• Enhance curb appeal But you’re not likely to get your investment back when you sell. Lower-cost projects, like enhancing curb appeal, are more likely to pay for themselves • Fiber-cement panels Other projects that provide a good return, according to The Wall Street Journal: Replacing siding with fiber-cement panels can return 79.3 percent of project cost.

• Replace garage door Replacing a garage door recoups 75.2 percent of costs, on average.

• Install insulatied vinyl windows Master bedrooms, gourmet kitchens and fancy bathrooms generally recoup less than 60 percent of their costs.

A National Association of Realtors survey of more than 3,900 appraisers, sales • New deck & roof agents and brokers provides these other estimates: Installing insulated vinyl windows earns back 71.2 percent.

A deck addition brings back 59.7 percent of costs.

A new roof will return 56.7 percent of costs, while building a garage brings about 54.7 percent of costs at selling time.

Expensive master-suite additions pay off with only a 52.1 percent return.

IndyInvestorMagazine.com

13

UPDATE ON HUD $100 DOWN PAYMENT! HUD has recently changed the way they market their HUD foreclosed homes. They are trying to upgrade their image and they do not want to their foreclosed homes to be lump in with the other “bank foreclosures”.

You still have to place your bid for a HUD foreclosed home on the Internet and you still have to use a Realtor. So, for the homebuyer that part is pretty much the same as before.

But, the most important thing is they are still going to offer the HUD $100 Down Payment Incentive in most parts of the country!

The normal down payment for FHA Home Loans is 3.5% and for conventional loans the down payment is up to 20%. Most people that want to purchase a home really don’t have a lot of money available for a down payment so they are left out of today’s home market. But everyone should be able to come up with hundred dollars for a down payment.

But this is a government program and there are, of course, some strings attached.You have some requirements in order to take advantage of this $100 down payment program.

The $100 Down Payment Program Has the Following Requirements: 1. HUD Foreclosed Homes Only! This FHA $100 Down Payment Loan is for the purchase of HUD foreclosure homes.

2. Have to use FHA financing.You cannot use conventional financing.

3. This program is for Owner-Occupants only, not for Investors.You have to sign a form at closing stating you are going to live in the property and not use it has an investment such as a rental property.

4.You still need to have the earnest money of $1,000 for properties listed above $50,000 and $500 for properties listed for less than $50,000. Earnest money will be returned to you at closing as a credit on the Closing Statement.

5.You can ask HUD to pay for closing costs up to 3% of purchase price.

If you are going to buy a home in the near future, you need to consider HUD Homes with this HUD Homes $100 Down Payment Program. This program is a national program and the perfect HUD foreclosed home could be in your area.

14

IndyInvestorMagazine.com

How To Purchase a HUD Home

Cómo comprar una Vivienda ¡El proceso para comprar una vivienda puede parecer complicado, pero si toma las cosas paso a paso, pronto tendrá en sus manos las llaves para su propia casa!

Nueve pasos para comprar una vivienda Calcule cúanto puede invertir en una vivienda Conozca sus derechos Busque la mejor hipoteca Aprenda acerca de los programas para compra de vivienda Busque una vivienda Haga una oferta Haga inspeccionar la vivienda Busque un seguro para propietarios de vivienda Firme papeles continued on page 16...

Unlock a Better Way to Sell Your House Atlantis Auction Group

List Your House for $75 on our Online Auction Lic AU10900054

1-800-276-8940 Ext 707

www.AtlantisAuctionGroup.com IndyInvestorMagazine.com

15

How To Purchase a HUD Home

Cómo comprar una Vivienda continued from page 15...

Paso 1: Calcule cuánto puede invertir en una vivienda La cantidad de dinero que usted puede permitirse invertir depende depende de sus ingresos, valoración crediticia, gastos mensuales actuales, la cuota inicial y la tasa de interés. Las calculadoras abajo pueden servirle de ayuda, pero es mejor visitar a un prestamista para averiguar con mayor certeza.

¿Cuánto puede invertir en una vivienda?

Comprar vs. Alquilar Como Prepararse Para Comprar Vivienda ¿Necesita ayuda con su cuota inicial o costos de cierre?

Programas de compra de vivienda locales ¡Un asesor de vivienda le puede ayudar a calcular cómo manejar y pagar sus deudas, y empezar a ahorrar para ese pago inicial! Busque un asesor de vivienda cerca a usted Paso 2: Conozca sus derechos Equidad de Vivienda: Igualdad de Oportunidades para Todos - pamfleto Ley de Procedimientos para Liquidación de Bienes Raíces (RESPA, por sus siglas en inglés) Derechos del prestatario Prestamistas fraudalentos Paso 3: Busque la mejor hipoteca Ahorre dinero preparándose bien. Hable con varios prestamistas, compare costos y tasas de interés, negocie para obtener una mejor oferta. Considere conseguir aprobación previa para un préstamo.

Cómo buscar la mejor hipoteca: averiguar, comparar, negociar - folleto Deje que la FHA le ayude Evite prácticas de préstamo abusivas Paso 4: Aprenda sobre los programas de compra de vivienda Programas de compra de vivienda locales Los programas de préstamo FHA le ofrecen una cuota inicial más baja y son una buena opción para los compradores de casa por primera vez.

Deje que la FHA le ayude Programas de compra de vivienda especiales de HUD Programa del Buen Vecino – para policías, maestros, bomberos, y técnicos de emergencia médica Ventas a descuento para evacuados de huracanes Propiedad de vivienda para residentes de vivienda pública Programa de Garantía de Préstamos Hipotecarios para Comunidades Indígenas (Sección 184) continued on page 17...

16

IndyInvestorMagazine.com

How To Purchase a HUD Home

Cómo comprar una Vivienda continued from page 16...

Paso 5: Busque una vivienda Escoja un agente de bienes raíces Lista de expectativas - ¿Qué características desea?

Listsa de verificación de búsqueda de viviendas – lleve esta lista consigo al hacer comparaciones de viviendas Viviendas en venta (incluye viviendas de HUD) Viviendas para refaccionar (“Fixer-Upper”) – programas para compra y reparación de viviendas Viviendas pre-fabricadas (casas móviles) Construya una casa Si escoge una vivienda en un vecindario con una Asociación de Propietarios de Vivienda (HOA, por sus siglas en inglés), asegúrese de solicitar una copia del paquete de HOA de modo que usted pueda revisarlo antes del cierre.

Paso 6: Haga una oferta Discuta el proceso con su agente de bienes raíces. Si el vendedor le hace una contraoferta, tendrá que negociar hasta que ambos concuerden en los términos de la venta.

Hacer una oferta Paso 7: Haga inspeccionar la vivienda Presente su oferta sujeto a condición de una inspección de la vivienda. Una inspección le indicará la condición en que se encuentra la casa y puede ayudarle a evitar comprar una vivienda que necesita reparaciones mayores.

Para su protección, haga inspeccionar la vivienda 10 preguntas para el inspector de vivienda Paso 8: Busque un seguro para propietarios de vivienda Las agencias crediticias requieren que usted tenga un seguro hipotecario. Asegúrese de buscar la mejor oferta.

Seguro hipotecario 12 pasos para reducir el costo de su seguro de hipoteca Paso 9: Firme papeles Por fín está listo para el “cierre”. ¡Asegúrese de leer todo antes de firmar!

Costos de cierre e información importante

Are you upside down on your mortgage?

Do you need to sell your home?

No equity? No Problem!

Atlantis Realty Group

Short Sale Certified Get a FREE Consultation No Obligation 1-800-276-8940x2

IndyInvestorMagazine.com

17

?

?? ? ? ? ? ?

: n o i t s e Qu

Answer:

We’ve just sold our large home and want to buy a condo for about $160,000. Is paying cash a good idea?

It’s a complicated question. If your home sale brought enough, or more than enough, to pay cash for your new place, it can be a good idea. That’s especially true if you own a small business or are retired and might have difficulty getting a mortgage.

Ask the Editor

Lisamarie Schmidt

18

More retirees are paying for their homes with cash, mainly because obtaining financing can be so time consuming.

In the first quarter of this year, 43 percent of existing homes sold in the United States were purchased entirely by cash, according to CNNMoney.

Some buyers would rather forgo the headaches of getting a mortgage under strict qualification standards that have prevailed since the housing slump. And fewer banks are willing to lend to Canadians and other foreign nationals seeking to buy a second home.

Due diligence • Though you’re paying cash, you still have a lot to do before the condo is yours.

Some cash buyers still use a mortgage company to handle their deals. They will have the home inspected and have a title search conducted once you’ve signed a purchase and sales agreement. Their real estate attorney will oversee the process of the sales transaction.

• Sign a purchase and sales agreement, remit the deposit requirement and schedule a closing date. Sellers also may have restrictions on how quickly they can vacate and turn over the title.

• Review the anticipated closing costs. Among the costs you may have to pay regardless of financing are the broker’s commission and the lawyer’s fee. Pro rate utilities and taxes, recording fees and miscellaneous courier fees if any.

• Convert your cash to a cashier’s check or checks on the day of the closing.

Be sure the seller can produce the title.

• Register the deed with the Registry of Deeds in your county.

IndyInvestorMagazine.com

Financing a Fixer-Upper?

Purchase and Rehab All in One FHA Loan!

You just love the house. Except for the leaky pipes. Or maybe the kitchen is too small. For the house that’s almost perfect, we have the perfect solution: Our Renovation Mortgage, a mortgage and home improvement loan all in one.

■ Purchase or refinance ■ Remodel the kitchen or bath ■ Renovate or add a room ■ Paint the house or add siding ■ Add a porch, deck or patio ■ Replace a leaky roof ■ Put in new flooring, carpeting or tiling ■ Update electrical wiring, plumbing or heating systems ■ Conserve energy with new windows ■ Plus much more!

This program offers the unique features that make FHA loans excellent financing solutions in today’s market:

■ Purchase or refinance ■ 1-4 unit properties (owner-occupied only) ■ FHA down payment (3.5%*) ■ Flexible credit qualifying ■ Assumable loans *For example, a $200,000 FHA loan with 3.5% down, 5.000% interest rate, 5.616% APR, and 0 points would require monthly payments of $1,074.00 for 30 years.Taxes and insurance are extra. Information is subject to change without notice.

Restrictions apply, ask for details.

Chris Moore Renovation Sales Manager Prospect Mortgage NMLS# 418893 600 E. Carmel Dr., Ste. 122 & 123, Carmel, IN 46033 Office: (317) 847-4738 | Cell: (317) 847-4738 Fax: (877) 536-9262 chris.moore@prospectmtg.com

Visit My Website!

• Learn about home loans • Use loan calculators • Apply for a home loan

HomePath is a registered trademark of Fannie Mae.

Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state. Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company licensed by the Department of Corporations under the California Residential Mortgage Lending Act and operates with the following licenses: AK Mortgage Lender/Broker License #AK3296; AZ Mortgage Banker License #BK0903027; To check the license status of your CO mortgage broker, visit www.dora.state.co.us/ real-estate/index.htm; GA Residential Mortgage License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co.; MT Residential Mortgage Lender Licensee #120; NV Division of Mortgage Lending Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept.; Licensed Banker-NJ Dept. of Banking and Insurance #9932414; Operates as Prospect Lending, LLC in NY (Licensed Mortgage Banker - New York State Department of Banking); OR Mortgage Lender Licensee #ML-2006; PA Dept. of Banking license #22122; RI Licensed Lender #20021343LL, Broker #20041643LB; licensed by the VA State Corp.

Commission as MC-2195. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.

IndyInvestorMagazine.com

19

REAL ESTATE INVESTORS • Rehab ~ Fix and Flip Let us fund your next investment property purchase. We provide investors with short term funding for acquisition, rehab projects and renovations of residential foreclosed properties. Our basic criteria for funding consider is listed below: • Loan to Value Ratio (Purchase) Up to 65% • Interest Rate Usually 10-16% • ARV Funding Available • Term 6 months; 12 months - 2 years • Amortization Interest Only • Loan Safety Mortgage secured by a lien against the Property

• Fees 3 - 6% (TBD) • Loan Purpose Single Family / 1-4 Units, Non Owner Occupied • Loan Preference 1st position (primary) 2nd position (case by case) • Loan Distribution Third Party Escrow / Service Company • Location Indiana, Marion County (Primary) • Cities Indianapolis & Surrounding Cities; Central Indiana

For Additional Information: www.dkdglobalfinancial.com Call 317-809-5177 • Email: td@dkdglobalfinancial.com

20

IndyInvestorMagazine.com

Atlantis itle Services Inc. with

Stay Connected!

Atlantis Title Services, Inc

and

ClosingTracker.com™

Leverage the power of the Internet to stay connected to your closing transactions. With anytime, anywhere access, you can place new orders online, view up-to-the-minute status and view and download closing and title documents.

With Atlantis Title Services, Inc. and ClosingTracker, you can eliminate the routine phone calls and have more time to attract new business.

Stay Connected with Easy Access to Your Escrows

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Call today to learn how you can get connected with Atlantis Title Services and ClosingTracker!

David L. Heller President

8645 E. 96th Street Indianapolis, IN 46256 Cell - (317) 402-0779 Email – davidh@atlantistitleservices.com

IndyInvestorMagazine.com

051006

21

6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com

3080 Buckmoor Pkwy.

Greenwood

Home has king size master suite w/ sitting area, master BA has jetted tub.

Family room has gas log fireplace.

Home also features hardwood floors, raised ceilings, built in bookcase. $190,000 BLC# 21263944

941 W 77th Street N Drive Indianapolis

A lovely brick ranch with 3BR and 2BA. It has a fireplace. KT features hardwood floors & plenty of cabinet space and Spacious bedrooms. Large lot size, great for outdoor activities.

BLC# 21252715 $128,000

1617 Pele Place Indianapolis

406 Ironwood Lane Anderson

3BR, 1BA located close to downtown Indy! Close to entertainment, shopping and dining. This would be great for a first time home buyer or to add to your investment portfolio.

BLC# 21286699 $79,200

Great Investment. Prime Rehab area.

5 windows, both exterior doors & garage door already replaced. Ready for the rest of the rehab.

BLC# 21278745 $18,000

1057 Timber Creek Drive U# 7 Carmel

3895 Fairview Road Greenwood

1320 Citation Circle Lebanon

New carpet throughout, fresh paint in all rooms, new light fixtures & new water heater. MBR has full bath & both BR have walk-in closets. KT with breakfast bar.

BLC# 21270178 $83,500

2063 Kerns Court Indianapolis

Come see this nice home. The living room is spacious and has a fireplace. There is also a den. There is a sun room, which is great for the summertime.

BLC# 21278347 $189,000

6429 Grandview Drive Indianapolis

7331 Twin Beech Drive Indianapolis

22

1614 E Market Street Indianapolis

Come see this 2 bed 2 bath property.

The living room has a nice fireplace.

There is a separate dining room. The master bedroom suit has a walk in closet.

BLC# 21290385 $90,000

This home has a nice size family room. The master bedroom has a nice full sized bathroom in it. There is a nice closed in back porch. This home is a must see.

BLC# 21269845 $85,000

This is a very spacious home with a fire place in the dining room. Also, the dining room has hardwood floors.

There is an enclosed porch as well.

This is a must see.

BLC# 21285940 $75,000

342 N Elder Avenue Indianapolis

Don’t miss out on being the owner of this beautiful 3BR, 1BA ranch. This would be great for a first time home buyer or to add to your investment portfolio.

BLC# 21288144 $94,900

Come take a look at this 3 bed 2 bath home. This home a nice sized living room with a fire place. Also, a fire place located in the dining room. This home has a big backyard with a shed.

BLC# 21277460 $88,000

4BR 3BA has a family room with a full wall brick fireplace and built in cabinets. Vaulted ceilings in living room and kitchen. Large deck off the back overlooking the pond.

BLC# 21287988 $89,900

2444 Impala Drive Anderson

342 N Elder Avenue Indianapolis

Come see this 3 bed 2.5 bath home.

The living room has a wood burning fire place. There is an enclosed back porch. The backyard is a nice size.

This house is a must see.

BLC# 21282453 $97,000

Don’t miss out on being the owner of this 4 bedroom, 1 bath home located close to downtown Indy. This would be great for a first time home buyer or to add to your investment portfolio.

BLC# 21285940 $47,200

5405 E 20th Street Indianapolis

6220 Northern Lane Indianapolis

2BR bungalow on Indy’s eastside with full basement. Basement is equipped with a 2nd KT. Home has a nice covered porch, fenced rear yard, with large detached garage.

BLC# 21288612 $30,000

Jenni Ruiz || jenni@ruizrealty.net

Living room and bedrooms have hardwood floors. 1 car attached garage. Home is located on a quiet street in Washington Twp. Needs a little TLC. BLC# 21278641 $72,000

2385 S Sugar Creek Road Franklin

Come check out this 3 bed 1 bath home. the living room is cozy with a fireplace. there is also an enclosed porch. There is a huge yard. Come check out this property.

BLC# 21283051 $88,000

6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com

12036 Quarry Court Fishers

519 N 18th Street Noblesville

773 S Pennsylvania Street Greenfield

Come take a look at this beautiful home. This spacious home has a very nice living room with a fireplace. The bedrooms are a great size as well. The kitchen has beautiful counter tops. This is a must see BLC# 21274193 $237,900

This is a dollhouse! Inside updates galore - new drywall, ceilings and flooring throughout. Kitchen has a ton of cabinet space. Appliances stay including washer and dryer.

Large backyard has storage barn and firepit. This is a must see!

BLC# 21293704 $86,500

3 bedroom 3 bath brick home on large lot with mature trees.

Vaulted ceilings in living room with large stone fireplace, and bay window. Open concept. Gazebo on property.

1216 N 10th Street Elwood

4809 Moller Road Indianapolis

1835 E 75th Street Indianapolis

BLC# 21297701

$149,000

1095 Dusty Court Greenwood

Home has been completely remodeled!

New hardwoods, ceramic tile & carpet throughout.

KT has granite counters, glass tile backsplash, and ceramic tile flooring. Upstrs and MBA have granite ctr tops, cer tile flr, cer tile wrap around shwr and tub.

BLC# 21293387 $189,800

Nice 3 Bedroom, 1.5 bath ranch, with bonus room, oversized 1-car detached garage 16’x22’ with 220V service. New A/C unit in 2012. Brick paver patio in rear.

7573 Micawber Circle Indianapolis

8564 Castle Farms Road Indianapolis

This is a great starter home or will make an excellent investment.

This 3 bed 1 bath home is in a great neighborhood for raising a family. The yard has mature trees.

Do not miss out on this fantastic opportunity.

BLC# 21294331 $30,000

2 bedroom 1 bath stone bungalow with charming archways, basement on 1 acre lot. Lots mature trees provide cozy shade for outdoor entertaining. Backyard features raised deck and storage shed. Home has a well.

BLC# 21295557 $79,000

3BR 1BA home. Features a LR with a picture window, an eat-in kt that has been redone. A separate LR in the back to be used as a another living space or playroom/ gameroom. Fridge and gas oven are included. Home has a 2 car detached garage, BLC# 21295236 $82,900

Come see this attractive 3 bed 2 bath home. The living room is spacious and has a fireplace. there is a nice size kitchen. The backyard has a pond. Come check it out.

4542 N Richardt Avenue Indianapolis

4226 N Whittier Place Indianapolis

7620 E Hanna Avenue Indianapolis

3045 Holt Road Indianapolis

Ranch home has 2BA and FR with a fireplace. Patios in front & back, mature trees, newer cabinets in kt. Lots of opportunity with this property especially at this price.

Nice location among well kept homes BLC# 21293544 $73,150

3 bedroom brick ranch on a large lot. Fenced rear yard with plenty of side and front yard space as well.

Long driveway leads to a 2 car detached garage.

4825 W Naomi Street Indianapolis

574 W Taylor Street Shelbyville

BLC# 21287676

$33,000

Great investment Opportunity! To be sold “AS- IS”.

Cozy 3 bedroom home with fenced yard. Good starter home

BLC# 21296524

BLC# 21296316

$24,000

$21,000

BLC# 21286284

$125,000

Lots of space inside and out (1 acre+)! Stone house with 5 bedrooms and a basement. Family room has corner fireplace. 2 bedrooms down and 3 bedrooms up. Backyard partially fenced-in for play area.

BLC# 21291655 $74,900

Come see this 2 bedroom 1 bathroom home. This house has a nice size backyard, and has a shed for extra storage.

7601 W Mockingbird Court Fairland

845 Westpointe Drive Shelbyville

Almost everything new in this huge home! High Efficiency, easy-clean tilt out double pane windows.

New 35 yr. dimin. roof, New water heater, water softner, furnace, AC, carpet, lam. floor, paint, ceiling fans, stove, micro hood & the kitchen sink. Move right in.

BLC# 21269758 $136,000

218 Whiteland Road New Whiteland

BLC# 21272254

$18,900

Beautiful 3BR/ 2BA home with a 2 Car Attached Garage. Home has a beautiful stone fireplace in the Living Room. Separate Laundry Room, Split Floor Plan. Great fenced-in rear yard. Enjoy the summer evenings on your covered front porch with railing and gate.

BLC# 21296956 $100,000

Jenni Ruiz || jenni@ruizrealty.net

BLC# 21294743

$49,900

Check out this nice home. You will enjoy the view from the screened in porch, or you will enjoy the sun on the deck. There is an eat in kitchen that opens to the family room.

There is a pond in the backyard as well. Come check it out.

BLC# 21298474 $89,900

2035 Medford Avenue Indianapolis

Beautiful 4 bedroom, 1 bath ranch located in Wayne Township! This would be great for a first time home buyer or to add to your investment portfolio. The inside has brand new carpeting and everything has been freshly painted.

BLC# 21296504 $39,999

1635 Beckett Drive Shelbyville

Brick and vinyl 3bd 1.5ba in established neighborhood. Brick fireplace in family room, good cabinetry in kitchen, mature trees and storage shed in partially fenced backyard.

BLC# 21297628

$79v,000

23

HUD.GOV/HUDHomes

U.S. Department of Housing and Urban Development

Listing and Bidding Procedures Disclosures HUD Homes are sold “As Is” without warranty.

Irregularities in bids: HUD reserves the right to waive any irregularity in any bid, reject any and all offers, and to withdraw a property prior to the bid opening.

Code and Zoning violation: Brokers should advise Purchasers that the properties may contain code and/or zoning violations.

Code and Zoning status must be determined by the Purchaser.

Property Condition: No guarantees and/or warranties made. No repairs will be performed by HUD after closing.

Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property.

Potential Purchasers: Contact a HUD Approved Broker to obtain a copy of the current listings, to visit listed homes or to make an offer.

HUD pays closing cost up to 3% of the purchase price. If inserted on line 5 of the HUD Sales Contract when the electronic bid is submitted.

HUD’s Homeownership incentives: $100 Down - Available to owner occupant buyer who purchase a HUD Home with FHA financing, indicate on Line 4, Lender MCAW form, and buyer still responsible for earnest money deposit.

More information on BUYING A HUD HOME on the HUD website at: http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home

Listing Codes IN - Insurable: All properties listed as “INSURABLE” are eligible for FHA financing. All requests for insurance will be under Section 203(b) of the National Housing Act Program. An interest rate will be charged on the loan and is negotiable between the purchaser and lender. The mortgage may include some mortgage insurance payments.

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IndyInvestorMagazine.com

IE - Insurable with Escrow Repairs: Properties listed as “INSURABLE WITH ESCROW REPAIRS” means that certain repairs (not to exceed $5,000.00) are required to meet Minimum Property Standards for an FHA mortgage. These properties can qualify for FHA 203(b) mortgages if the purchaser and lender establish a repair escrow at the closing for the completion of repairs within 50-days of the closing. This is not a gift from HUD. The sales price remains the same and is added to the mortgage. No repairs prior to closing.

UI - Uninsured: Properties listed as “UNINSURED” means that certain repairs and or improvements are required to be eligible for an FHA 203(k) mortgage. The required repairs on most of these properties exceed $5000.00.

Purchasers of these properties have the option to purchase “as-is” with cash or conventional financing. These properties are also eligible for an FHA 203(k) mortgage if the required repairs end or the improvements are completed within 90-days of the closing.

Listing and Bidding HUD Approved Brokers will show properties, prepare complete contracts and submit bids through internet Electronic Bidding at the HUD Listings website.

New listings are available daily.

During the Exclusive Listing Period, bids may be submitted only by Owner Occupant purchasers, which HUD defines as owner-occupant purchasers, qualified nonprofit organizations and government entities. There will be: • a fifteen (15) day Exclusive Listing Period for Owner Occupant purchasers for properties listed insurable and insurable with Escrow Repairs, •

a five (5) day Exclusive Listing Period for Owner Occupant purchasers for properties listed uninsured.

Owner Occupant must occupy the house for one year and can’t participate in a HUD sales for two years after purchase.

Exclusive Listing Period (Owner Occupant Priority).

• For insurable and insurable with Escrow properties, bids shall be opened and reviewed on the Tenth (10th) day of the Exclusive Listing Period. All bids will be treated as having been received simultaneously. If no winning bid is received by the tenth (10th) day, bid shall be opened and reviewed on each day after the tenth (10th) day up to the fifteenth (15th) day, or until a winning bid is received. If no winning bid is received in that fifteen (15) day period, the listing shall be extended to all buyers on day 16. See Extended Listing Period below.

Extended Listing Period.

At the conclusion of the Exclusive Listing Period, should a property remain unsold, all general public bids (including investors) may be submitted daily.

Submitted a Bid Over the “As Is” Value The “As-Is” value is equal to the appraisal value.You can’t get a second appraisal when using FHA.You will be notified if you overbid and will require submission of proof of funds. Buyers must bring cash for the overbid amount.

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Bid Opening, Review and Results In order to be valid for bid opening on a specific day, bids must be completed and confirmed on the Internet no later than 11:59 p.m. on the previous day. Bids can be submitted 24/7 but are not reviewed Holidays or weekends.

Bids received on the same day shall be considered to have been received simultaneously. Friday, Saturday and Sunday bids will be considered to have been received simultaneously and will be reviewed simultaneously on the following Monday.

Bids will be opened and reviewed each business day.

The highest acceptable net bid to HUD will be selected.

Results will be posted each business day by 1:00 p.m.

If two acceptable bids which are exact same amount are received, the AM Contractor will select the winner by randomized electronic drawing.

REMINDER: Brokers must check the HUD Listings website on a daily basis for available properties and Bid Result Publication. If your bid is selected, Brokers must submit the original written and completed HUD Sales Contract along with the required Addenda to the appropriate AM Contractor office within the next 48 hours of Bid Result Publication otherwise the bid will be considered canceled and the second highest acceptable net bid to HUD will be considered.

NOTE: If you search for a property and it does not show up in the search properties area then that property has an accepted bid at this time.

Property Search Results There are no HUD Homes that match your search criteria.

Required Contract Documents HUD SALES CONTRACT and REQUIRED ADDENDA:

•

Fillable HUD Sales Contract Form 9548 Revision (1/99)

Attach the following Addenda:

•

Lead Paint Addendum, if the property was built prior to 1978. The Lead Based Paint Addendum is property specific and will be posted with the property listing.

•

General Addendum to HUD Sales Contract.

•

For Your Protection: Get a Home Inspection

•

Notice to Purchaser Addendum when the offered amount exceeds the appraised value at the time the offer is submitted.

Certification of Owner-Occupant, if purchaser is an owner-occupant.

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•

IndyInvestorMagazine.com

•

Radon Gas and Mold Notice and Release Agreement.

•

Forfeiture & Extension Policy (Addendum A, Rev. 6/15/2009)

•

Lead-Based Paint Addendum (if applicable)

•

Flood Zone Addendum (if applicable)

•

Letter from a Financial Institution acknowledging that purchaser has funds available for down payment.

• Mortgage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating

that an in-house credit check has been performed and the purchaser has been pre-qualified for a

mortgage up to a specified mortgage amount. The Pre-Qualification letter must be on lender

letterhead, give the name(s) of the people listed on the contract, have the correct loan amount, the type of loan, noted that “the credit has been approved”, signed by the loan office (no digital signatures), and dated within the past thirty days.

• Certification from a Financial Institution, if the purchase is cash, stating that funds are available on the day of closing.

• Certification of Owner-Occupant Status for Cash Purchases: All bids by owner-occupants, who are

purchasing properties listed in the owner-occupant category, must include an Owner-Occupant

Certification. Sanctions will be immediately imposed upon Brokers, Agents and Investors found to be abusing the system.

Avoid Common Errors!

To be acceptable, hard copies must contain no errors and done in BLUE ink.

You can’t use white out or liquid paper on a contractual document.

Do not use a yellow highlighter on the contractual documents. The document will not scan properly for HUD with highligher on it.

Make sure social security numbers are listed on the contract correctly.

The buyers name must match exactly on lines 1, 2 and 13 on the contract.

Down Payment Owner Occupants Only:

3.5% Minimum Down payment for FHA financed properties.

Maximum mortgage amount 96.5% of the appraised value or sales prices whichever is lower.

Investors:

1 unit: 25% Minimum Down payment, for FHA financed properties;

2 to 4 units: 15% Minimum Down payment, for FHA financed properties.

Earnest Money Deposit Required Earnest Money: Must be in the form of a cashier’s check, money order, or other certified funds. The original Earnest Money check should be submitted with the sales contract after bid acceptance. The Earnest Money deposit will be sent to the Closing Agent after Execution.

•

$1,000 for offers greater than $50,000,

•

$500 for offers $50,000 or less,

•

50% of the Listing Price for Vacant Lots

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Earnest Money Forfeiture and/or Return The following provisions are applicable in all instances except those where HUD is unable or unwilling to close the sale, in which case the entire amount will be returned.

Investor Purchasers: •

Uninsured Sales: 100% of the deposit will be forfeited to HUD for failure to close, regardless of the reason.

•

Insured Sales:

• 50% of the deposit will be forfeited to HUD for failure to close if the purchaser is determined by HUD to be an unacceptable buyer.

• 100% of the deposit will be forfeited to HUD if the sale fails to close for any other reason.

Owner-Occupant Purchasers: Return 100% of the deposit when:

•

There has been a death in the immediate family (purchaser, spouse or children living in the same household).

• There has been a recent serious illness in the immediate family that has resulted in significant medical expenses or substantial loss of income, thus adversely, affecting the purchaser’s financial ability to close the sale.

•

There has been a loss of job by one of the primary breadwinners, or a substantial loss of income through no fault of the purchaser.

•

For an FHA insured sale, HUD (or a D.E. underwriter) determines that the purchaser is not an acceptable borrower. For an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage financing. “Pre- approved” means a commitment has been obtained from a recognized mortgage lender for mortgage financing in a specified dollar amount sufficient to purchase the property.

• There is other equally good cause, as determined by AM Contractor, in keeping with the spirit and intent of the above policy.

Return 50% of the deposit when: For an uninsured sale, despite good faith efforts by the purchaser, there is an inability to obtain a mortgage loan from a recognized mortgage lender.

Forfeit 100% if the deposit when:

• No documentation is submitted.

• Documentation fails to provide an acceptable cause for the buyer’s failure to close.

• Documentation is not provided within a reasonable time following contract cancellation.

Vacant Lot Sales: The purchaser is considered to be an investor and instructions pertaining to investors will apply.

Closing Costs (Line 5) HUD pays certain Closing Costs up to 3% of the purchase price, IF inserted on line 5 of the sales contract when the electronic bid is submitted. Enter this numeric figure (not percentage) on line 5.

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Closing Time Frame For DEMCO & OFORI: HOMETELOS: Just exchange 45 to 30 & 30 to 45 All purchasers must close on or before forty-five (45) days of contract acceptance date for normal and cash closings.

203k must close sixty (60) days of contract acceptance.

Closing Extension Policy ALL SALES ARE EXPECTED TO CLOSE WITHIN THE APPLICABLE TIME FRAME IDENTIFIED ON LINE 9 OF THE SALE CONTRACT. Closing Extension Request: If the closing does not occur on the specified date on line 9 of the HUD Sales Contract 9548, the Broker should contact HUD’s Closing Agent at least two weeks prior to that date to request an extension.

AM Contractors, as HUD’s Representative, may grant an extension of closing time and, if approved, each extension will be for a period of fifteen (15) days: • Submit the “Request For Extension of Closing Date” (Extension Request form) and all the required supplemental supporting documents to HUD’s Closing Agent prior to the expiration of the sales contract.

• Documentation submitted with the extension request must establish that a closing can reasonably be expected to occur within the extension period.

• The extension request must be accompanied by a cashier’s check, money order or other certified funds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price:

Contract Sales Price

Extension Fee

Equal to or less than $25,000.00

$150.00 ($10.00 per day)

$25,000.01 to $50,000.00

$225.00 ($15.00 per day)

$50,000.01 and over

$375.00 ($25.00 per day)

• The initial 15-day extension will be provided for owner occupant purchasers, at no cost, if documentation is provided indicating that proper and timely loan application was made, that the delayed closing is not the fault of the purchaser and that mortgage approval is imminent.

• The extension fee will be retained by HUD. In the event that the purchaser closes prior to the end of the extension period, the unused, prorated portion of the extension fee will be credited to the amount due at closing.

•

The approval of an extension does not obligate AM Contractor, as HUD’s Representative, to grant future extensions.

Home Inspection

(Optional, but highly recommended)

There is a 15 day due diligence period.You must have FSM authorize your home inspection.You have 48 hours to complete home inspection after last utility is turned on and you must turn off utilities after inspection. When you receive written permission (executed sales contract), contact the local utility companies, and coordinate dates between them and your inspection.

IndyInvestorMagazine.com

29

Fill out a utility activation request form. The utilities are to be turned on in the purchaser’s name and at purchaser’s expense. The purchaser is responsible for the actual costs to activate, deactivate and when necessary, re-winterize the property. The purchaser must place a refundable $150 deposit, in the form of certified funds or money order. The amount is sufficient to cover these costs. This deposit is required to ensure the property has been re-winterized. It is the buyer’s responsibility and cost to re-winterize. If the property has not been re-winterized at the end of the allowable 72 hr period, this may result in a delay of closing (buyer will also be responsible for any property damage incurred).

FHA Amendatory Clause This addendum is not required and will not be executed on HUD sales. HUD homes are exempt from the clause.

Broker Registration and NAID As Broker, Nonprofit, or Government Agency, you can make an offer on a HUD Home only if you have a HUD Name Address Identifier (NAID). To apply for a NAID, http://www.hudhomestore.com/hud/NaidRegistration.aspx So in order to place a bid on a HUD property, you must have an active NAID,You may obtain a NAID by completing the necessary forms and providing all required attachments to the HUD Homeownership Center which has jurisdiction over the state in which you are located. The NAID application package must contain the documents as listed at http://www.hudhomestore.com/hud/NaidRegistration.aspx If your application package does not contain the required documents, the package will be returned and extend the processing time. The NAID application processing time is a minimum of 2 weeks.

For Selling Brokers: Only Selling Brokers may obtain a NAID. Real Estate Agents must use the NAID of their Selling Broker to submit bids.

First to get a NAID Number Register Here

As an agent, if you have already registered, login here

As an agent, if you have never registered, login here

Properties for Purchase

30

IndyInvestorMagazine.com

Available

Not Available

Broker Commission (Line 6a) HUD will pay up to 6% or a minimum of $2500 commission to be equally split between the Listing and Selling Broker, IF inserted on line 6a, of the new HUD Sales Contract Form 9548 (1/99). Line 6b will populate 3% for the listing broker commission.

Remember: Lines 5 and 6a affect the net to HUD.

Help

“WHAT IF I NEED HELP?”

If you need help, you can obtain it:You can go to http://www.HUDHomestore.com

The HUD-9548 Sales Contract Line1: Type purchaser(s) name and complete property address. Make sure to type in the county.

Line2: Enter name(s) and style in which tile will be taken. Please match the name exactly as on line 1 and the STYLE they are taking title (individual, married, etc.)

Line3: Enter bid amount and amount of the earnest money (which is $500 if $50,000 or under or $1000 if $50,001 and over) and fill in that it will be held by HUD. Please send this in a cashier’s check or money order (NO personal checks) paid to the order of: If it is PEMCO or HOMETELOS it will be the name of title company, If OFORI in the name of the listing broker.

Line4: Make sure the appropriate box is checked for the type of financing your buyer is getting and in compliance with what seller’s offering. If FHA 203(b) repair escrow, then check “said mortgage involves a repair escrow amounting to $__” and fill in amount. Also leave blank or enter TBD (to be determined) the three spaces for down payment, mortgage loan amount and the number of months.

Line5: Enter the amount of financing/closing cost submitted on your bid.

Line6: Enter dollar amount of commission to be paid by seller as submitted on your bid.

Line7: Enter net amount due seller as submitted on your bid.

Line8: Enter buyer type (owner occupant or investor) Line9: Enter in accordance with AM Contractors instructions for closing dates. On the second blank your purchaser will fill in the blank with the closing agency they will use.

Line10: Enter appropriate back up offer information Line11: Check the appropriate boxes.

Line12: Purchaser(s) must initial in appropriate space Line13: Make sure to write in your purchaser’s phone number under the signature line, and have them date the contract: when they sign it. Always have the managing broker sign the contract and the owner/occupant certification in the original blue ink signatures.

If this is an investor bid please make sure that the company name is on Line 1 and 2 of the contract. Also make sure that you include the company paperwork and proof of EIN number from the IRS.

SEE SAMPLE CONTRACT BELOW

IndyInvestorMagazine.com

31

Please fill out contract in blue ink!

U.S. Department of Housing and Urban Development Office of Housing Financial Housing Commissioner Property Disposition Program John Doe 1. I (We), ________________________________________________________________________

(Purchaser(s)) agree to purchase on the terms set forth herein, the following property, as more particularly

described in the deed conveying the property to the Secretary of Housing and Urban Development:

Sales Contract

HUD Case No.

123-456789

111 Any Street, Any City, County, State and Zip

(street number, street name, unit number, if applicable, city, county, state)

2. The Secretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein, and to prepare a deed

containing a covenant which warrants against the acts of the Seller and all claiming by, through or under him. Title will be take in the following Names must match Line 1 and state whether single, married and tenancy

name(s) and style: _______________________________________________________________________________________________ $100,000.00 3. The agreed purchase price of the property is 3. $________________________ based on sales price, $500 for < $50k and $1,000 for > $50k, Held By HUD 1,000.00

Purchaser has paid $ ____________________ as earnest money to be applied on the purchase price, and agrees

to pay the balance of the purchase price, plus or minus promotions, at the time of closing, in cash to Seller. The PEMCO or HOMETELOS - Title Company, OFORI - Listing Agent

earnest money deposit shall be held by ____________________________________________________ , If property is UI, only box 4.

Purchaser is applying for FHA insured financing [ 203(b) 203(b) repair escrow, 203(k) ] with a cash 203k or Conv/Cash can be

down payment of $ ________________ due at closing and the balance secured by a mortgage in the amount of checked ... for properties

$ _______________________ for ________ months (does not include FHA Mortgage Insurance Premium, listed as IN/IE check the

prepaid expenses or closing costs Seller has agreed to fund into mortgage. ). box of the loan you have

Said mortgage involves a repair escrow amounting to $ _____________________. been approved for

Purchaser in paying cash or applying for conventional or other financing non involving FHA. 5. Seller will pay reasonable and customary costs, but not more than actual costs, not more than paid by a typical Seller see HUD Notice 2005-12

in the area, of obtaining financing and/or closing (excluding broker’s commission) in an amount not to exceed 5. $________________________ 6a. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including Up to 3%

selling bonus, if offered by seller) of 6a. $_______________________ 3% auto populated by HUD 6b. If broker identified below is not the broad listing broker, broad listing broker will receive a commission of 6b. $_______________________ 90,000.00 7. The net amount due Seller is (Purchase price [ Item 3] less Items 5 and 6) 7. $________________________ 8. Purchaser is: owner-occupant (will occupy this property as primary residence) investor

nonprofit organization public housing agency other government agency. Discount at closing: _______________%

Discount will reduced by amounts, if any, listed on Line Items 5 and 6.

45 9. Time is of the essence as to closing. The sale shall close no later than __________ days from Seller’s acceptance of contract. Closing shall Title Company

be held at the office of Seller’s designated closing agent or _________________________________________________________________ pull the LBP Addendum from 10. If Seller does not accept this offer, Seller may may not hold such offer as a back-up to accepted offer Please property details as required.

11. Lead based paint addendum is is not attached; Other addendum is is not attached hereto and made part of this contract.

12. Should Purchaser refuse or otherwise fail to perform in accordance with this contract, including the time limitation, Seller may,

at Seller’s sole option, _retain all or a portion of the deposit as liquidated damages.The Seller reserves the right to apply the

earnest money, or any portion thereof, to any sums which may be owed by the Purchaser to the Seller for rent.

JD

Purchaser(s) Initials: _________ Seller’s Initials: ________ don’t forget 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of the contract.

Certification of Purchaser: The undersigned certifies that in affixing his/her/its signature to this contract he/she/it understands:

(1) all the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest; (2) he/she/it is responsible for

satisfying itself as in the full condition of the property; and (3) that Seller will not perform repairs after acceptance of this contract.

Purchaser(s) (type or print names & sign) Purchaser(s) Address: John Doe Current Address John Doe Purchaser(s) Social Security Number (SSN) or Employer Identification Number (EID) (Include hyphens) Phone No:_ Date Purchaser(s) Signed Contract 800-555-1212 123-45-6789 01/01/2011 Date Contract Accepted by HUD Seller: Secretary of Housing and Urban Development By: (type name & title & sign) X Certification of Broker: The undersigned certifies that: (1) neither he/she nor anyone authorized to act for him/her has declined to sell the property described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, familial status, national origin, or disability; (2) he/she has both provided and explained to the purchaser the notice regarding use of Seller’s closing agent; (3) he/she has explained fully to the purchaser the entire terms of the contract, including Condition B on the reverse hereof; and (4) he/she is in compliance with Seller’s earnest money policy as set forth on HUD forms SAMS-1111, Payee Name and Address, and SAMS-1111-A, Selling Broker Certification which he/she has executed and filed with Seller.

Brokers Business Name & Address: (for IRS reporting) (include Zip Code) Broker’s EIN or SSN: (include hyphens) SAMS NAID: 12-3456789 XYZ ABC XYZABC1234 1 Home Road

Signature of Broker: Broker’s Phone No: City, St., 12345 Type of print the name and phone number of sales person: Managing Broker Signature This section for HUD use only. Broker notified of:

Authorizing Signature & Date:

Acceptance Back-Up No. ____________ Rejection Return Earnest Money Deposit x Previous editions are obsolete

32

ref. Handbook 4310.5

IndyInvestorMagazine.com

form HUD-9548 (1/99)

GREEN, WEED-FREE 25% OFF First LAWN, GUARANTEED! ALL-INCLUSIVE PRICING, NO SALES CALL-EVER!

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COMPREHENSIVE TREATMENT PLAN THAT INCLUDES: Fertilizer Weed Control Insect Control Disease Control

Not valid with other offers or prior services.

Offer expires 3-21-14.

FREE

Final Application with annual program

Oasis Lawn Service 317-565-2582

W W W . O A S I S I N D Y. C O M Rates are LOW…. Let us help you…. with “Refinancing or Purchasing your Home!”

(Scores as low as 620 APPROVED!) *FHA & VA Financing –Including 203K, *USDA & RURAL Development Financing *CONVENTIONAL Financing

Not valid with other offers or prior services.

Offer expires 3-21-14.

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Home Buying Done EASY! **No Money Down Programs ** Local Underwriting ** 24 HOUR Pre-Approvals whether you have a house picked out or not! **In – House Appraisal Management Company

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(Over 20 years experience in both loans and customer service.)

Phone: 317-721-3092 Carla Jackson

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317.796.3989 Direct

cjackson@gvcmortgage.com

Yvette Wright

Director of Marketing/Sales

317-339-9339 Direct

Ywright@gvcmortgage.com

IndyInvestorMagazine.com

ApexContractingServices@gmail.com www.ApexContractingServices.com 33

Why do the most successful real estate professionals love working with HouseMaster®?

Our Inspectors are accurate, not arrogant!

HouseMaster inspectors are among the best trained in the industry. In addition to extensive technical training and ongoing support, they are also trained on how to communicate their findings in clear, concise and professional terms. We approach every inspection as a “service” focusing on educating your customers in a courteous and helpful manner. You’ll be impressed with both our knowledge AND demeanor!

“The Mark of Inspector Professionalism” How does your new home measure up?

Feel free to compare your home inspection results to over 2,000 other reports compiled in the HouseMaster Home Defect Survey. To see an interactive version of the survey results, go to housemaster.com/homedefects

MAJOR STRUCTURAL CONCERNS

ROOF REPAIR

ELECTRIC SYSTEM

ALUMINUM HOUSEHOLD WIRING INSULATION

CENTRAL HEATING SYSTEM

CENTRAL COOLING SYSTEM

WATER HEATER PLUMBING SYSTEM

OLD/MIXED PIPING

FOUNDATIONS

AGE OF HOME:

AGE OF HOME:

0-12 Years

13-29 Years

30+ Years

As you might expect, newer homes generally experience the fewest problems or defects.

However, the survey does point to some areas which can be of concern, even in a new or newer home.

Homes in this age range tend to require more repairs than newer ones. In a few categories, homes in this age group actually score worse than older homes. This is generally because systems in these homes are nearing the end of their useful service life, while in the older homes these systems will have been replaced.

While the expression “they don’t build them like they used to” has some truth behind it, older homes generally need more repairs — due to normal wear & tear and aging. It’s interesting to note that in selected categories, the often simpler systems in older homes hold up well.

9.11% of homes contained major structural concerns

13.65% of homes contained

37.71% of homes contained

19.33% of homes needed

49.35% of homes

55.34% of homes

14.15% of the homes

30.29% of the homes

48.63% of the homes

<1% of the homes had

aluminum household wiring

5.54% of the homes had aluminum household wiring

4.72% of the homes had aluminum household wiring

roof repairs

required electrical system repairs

major structural concerns

needed roof repairs

required electrical system repairs

AGE OF HOME:

major structural concerns

needed roof repairs

required electrical system repairs

11.7% had inadequate

30.45% had inadequate

48.88% had inadequate

15.4% of surveyed homes required Central Heating System repairs

59.74% of surveyed homes

54.35% of surveyed homes

13.67% of homes required

28.59% of homes required

20.98% of homes required

1% of homes required water heater repairs

18.34% of homes required

37.31% of homes required

8.96% had problems with the plumbing system

20.19% had problems with

40.42% had problems with

<1% had old or mixed piping

18.34% had old or

37.31% had old or

22.64% of homes showed

26.17% of homes showed

47.38% of homes showed

insulation

repair to the Central Cooling System

signs of water seepage or drainage concerns

insulation

required Central Heating System repairs

repair to the Central Cooling System

water heater repairs

the plumbing system

mixed piping

signs of water seepage or drainage concerns

insulation

required Central Heating System repairs

repair to the Central Cooling System

Every HouseMaster inspection includes context included on the attached document!

HouseMaster is the country’s most experienced name in home inspections. We take great pride in providing your customers with a positive service experience. Each HouseMaster customer is presented with our coveted Inspection Resource Guide®. at the start of the inspection. The guide includes an instructional home repair DVD to help emphasize that the focus of the inspection is on major elements. The DVD also shows customers how to address common maintenance issues on their own. The Guide also includes results of our home inspection survey. The results, which categorize the frequency of common home concerns reported, sorted by the age of the home, helps give buyers a better sense of what conditions found in their report may be considered normal depending on the age of the home.

water heater repairs

the plumbing system

mixed piping

signs of water seepage or

HouseMaster’s reputation inspires confidence:

HouseMaster, founded in 1979 is hands down THE recognized authority on home inspections. You may have seen HouseMaster featured on CNN, HGTV, and Fox Business or on your local news. We have collectively performed over 2 million inspections with overwhelmingly positive feedback. Over 99% of real estate professionals surveyed would recommend HouseMaster to their friends or family!

In today’s market, customers and clients need to be confident that the inspector they choose is reputable, knowledgeable, personable and experienced –that’s us!

34

IndyInvestorMagazine.com

The least expensive room to build When the family is growing, and the house is not, you could be wondering where to expand.

The experts at CNN Money say the number of bedrooms is often the biggest factor motivating a move to a larger place.

Fortunately, it’s the least-expensive room to build.

Because bedrooms don’t require the plumbing, tiling or appliances other rooms do, they can be comparatively inexpensive to add on. And, they could significantly increase the value of your home.

Forget finishing a room in the attic or building a room over the garage. These are very expensive projects.

“Looking to buyto a home oraan investment property?

Call the Heller Team.

“Looking buy home or an investment property?

Let the experience of 20 years in the industry work for you!”

Call the Heller Team.

Heller Associate LetDavid the experience of 20Broker years Stacy Heller Realtor in the industry work for you!”

Heller Team Realtors

DAVID HELLER ASSOCIATE BROKER

STACY HELLER ASSOCIATE BROKER

HellerTeam@AtlantisRealtyGrp.com

317.402.0779 (C)

IndyInvestorMagazine.com

800.276.8940 ext 713

35

FEATURE

317-842-3400

4213 E Pleasant Run Pkwy. Indianapolis

There’s nothing to do here but collect the rent. 2BR/1BA/1 bonus room. The current owner has updated almost all major mechanicals. $53,500

326 S 28th Street Lafayette

2BR 1BA home with almost 1,300 sqft.

PLUS a great fenced in back yard, basement and 1 car attached garage.

Nice cabinet space in the KT. $50,000

816 E 32nd Street Anderson

Bungalow with over 1000 SQFT plus a full basement. Back yard is fenced.

Detached garage. A little TLC and you’re all set! $23,200

306 S Main Street North Salem

Home has 3BR and 2BA. Great room has a gas fireplace. KT has a good size pantry and ceramic tile floor. MBR has his/hers walk in closets. $169,900

36

3955 N Hartman Drive Indianapolis

3BR bungalow with many updates including a new MBR, a new roof, new flooring throughout & many others.

Open floor plan. $65,000

3318 Hanover Drive #9 Lafayette

Condo with large floor plan at almost 1,100 sqft. 2BR, 1.5BA; dedicated dining area and an attached garage are featured. $35,000

1107 E Grant Street Marion

3BR 1BA home. Nice lot with mature trees and a 1 car det garage. Streets are lined with trees and sidewalks and close to downtown. $35,000

525 N Colorado Ave. Indianapolis

Spacious 3 bedroom home has been full renovated and is ready to move in.

Buy this to live in or rent it out for $725 $39,700 per month.

4245 Amesbury Place Westfield Almost 2000 square feet of charming living space with great floor plan.

3 bedrooms, 2.5 baths with a bonus room and a screened in porch off the rear with private lawn.

Lounge on the porch or beside the fireplace featured in the familyroom that opens up to the kitchen and dining area. Lots of space! This one even has a 3 car attached $174,900 garage.

5902 E County Rd 800 N Logansport

Home was built in 1996 on an acre of land in the country. This is a 3BR 1BA with a 2 car detached garage and over 1,700 sqft. $76,000

2033 Bellefontaine St. Indianapolis

2 story home has been fully renovated - a new roof, new interior, new carpet and many more. 3BR, 1BA, a spacious $79,000 LR, and DR/KT.

12281 Driftstone Drive Fishers

4BR 2.5BA home with nearly 2,000 SQFT. Home has large fenced back yard. Fireplace. Take a bubble bath in the master garden tub. $179,900

4309 Boca Grande Court Westfield

Spacious 3BR/2BA ranch. New flooring throughout home. Laminate hardwood throughout entry, DR, KT, laundry, and great room. $134,900

1220 E Memorial Drive Muncie

Some updates to the exterior including newer vinyl siding; interior needs updates. 3BR, 1BA and almost 1000 sqft. Nice back yard. $12,000

3343 N College Ave. Indianapolis

3 bedroom ready for you to move in. This townhouse has been fully renovated. Buy this to live in or rent it $55,000 out for $975 per month.

14469 Orange Blossom Trail Fishers

4BR and lots of storage space, 2.5BA, and more than 2,800 SQFT! The custom patio overlooks the fenced backyard. $164,900

357 Kelley Avenue Frankfort

3BR 2BA. Not much needed to move in and make this one home. Laminate flooring featured here for easy maintenance. $45,000

11009 S CR 300W Muncie

This huge house has 3,420 sqft. That includes 5BR, 2 bonus rooms, and 2.5BA. There is also an oversized twocar garage & a huge pool. $61,600

731 Carlyle Place Indianapolis

2BR/1BA. The current owner has updated almost all major mechanicals and a new roof has been installed. $47,000

5226 E 20th Place Indianapolis

Cute 2 bedroom is ready to move in.

This has many updates and is a must see. Buy this to live in or rent it out for $775 per month. $45,000

9591 N CR 800 E Albany

Almost 3,000 sqft. 3BR, 3BA and lots of storage. The home has a great KT that is open to the family room that has a fireplace. $190,000

9800 WESTPOINT DRIVE, SUITE 220 • INDIANAPOLIS • 317-842-3400

4421 Kingsley Drive Indianapolis

9510 Tower Lane Indianapolis

131 W North C Street Gas City

This 918 sqft single family home has 3BR and 1BA. This home is in the Indianapolis School District. $43,000

Great 3 bedroom 2 bath ranch home on dead end street. Enjoy the private fence yard with a large deck for entertaining. Don’t wait on this on it won’t last long at this price. $70,000

Cute 2 bedroom 1 bath with a huge 2 car detached garage that has enough space for a workshop. Covered back porch to grill or just sit and enjoy the backyard. $26,000

6231 Clinton Street Stilesville

2901 Sunnyside Avenue New Castle

4034 N Temple Avenue Indianapolis

Almost 1400 sqft in this brick ranch with 3BR, 2BA and a 2 car attached garage. A convenient floor plan and nice large lot are also found here. See what potential $79,500 this one has for you!

1837 N Emerson Avenue Indianapolis

This 2016 sqft home has 3 bedrooms and 2.0 bathrooms. It is located at 1837 N Emerson Ave Indianapolis, Indiana.

This home is in the Ips School District. $49,500

11349 Congaree Way Indianapolis

3BRs and more than 2,600 SQFT!Huge KT with center island and fireplace in the family room. Minutes from shopping, dining, entertainment, and highways. $99,999

6369 Bayside Court Indianapolis

This great condo features one bedroom with a loft, more than 1,000 square feet, and an attached garage.

Cozy up to the fire on those cold days. $76,900

4034 N Temple Ave. Indianapolis

There’s nothing to do here other than collect the monthly rent of $690.

2BR/1BA single family ranch. The current owner has updated almost all major mechanicals. $55,000

221 E Centennial Avenue Muncie

3 bedroom 1 bath bungalow in Muncie is ready to call home. A little TLC, paint updates and it will be a gem. Perfect location downtown. $30,000

Converted attic allows for a 3rd and 4th bedroom upstairs and almost 2000 sqft; plus storage room in the basement.

Home still retains some old world $72,000 charm and is so inviting.

65 N Devon Indianapolis

Lovely home in Warren Township.

Completely updated. 3rd BR is perfect for an office. This is move in ready. Buy this to live in or rent it out for $850 per month. $70,000

13151 Knollwood Place Fishers

This 2008 square foot single family home has 4 bedrooms and 3.0 bathrooms. This home is in the Hamlt Se School District. $204,900

13320 White Granite Place Fishers

2BR, 2.5BA Condo. Large Family Room.

Double Sided Fireplace Adds The Perfect Touch To The Family Room.

Dining Room Overlooks Kitchen. $99,900

11717 Capistrano Dr. Indianapolis

The wraparound deck is what will catch your eye at first but the 2 story entry may take your breath. And if that doesn’t convince you, wait til you see the oversized shower and tub. $144,999

3156 N Roseway Drive Indianapolis

3BR ranch with a large fenced in back yard. Eat-in kitchen before relaxing on your covered front patio. All new carpet throughout $59,500

This 1052 sqft single family home has 2BR and 1BA. This home is in the Indianapolis School District. $55,000

610 Edwards Avenue Beech Grove

Over 1,600 sqft ranch with 3BR, 2BA. New eat in KT with center island, formal LR, and FR with stone fireplace & built in bookshelves. Home also has in-ground swimming pool. $109,700

8950 E 45th Street Indianapolis

Bungalow with hardwood floors. 2BR, almost 800 SQF. The 2 car detached garage is oversized. The lot is also large for the area and has a chain link fence. $32,900

201 S Ash Street Fortville

Spacious 3BR 2BA home with over 1300 sq ft of living space. Open floor plan with breakfast bar in the large kt.

Small town but the convenience of city living. $43,000

9507 Timber View Dr. Indianapolis

3BR 1.5BA on a wooded lot! Usable basement space for storage or creating an office! Wood accent beams, lots of kitchen cabinet space for storage and counter space $85,900

8204 E 37th Place Indianapolis

Adorable 3BR. Large eat in kt, a HUGE bonus room for entertaining & a fenced in backyard. New carpet throughout the house $49,500

10747 Mistflower Way Indianapolis

A great home in Lawrence township school district. The home was renovated a few years ago and is ready for a new owner. Come and take a look! $97,700

10004 Fall Creek Road Indianapolis

This 4BD/3BA home sits on a 1 acre wooded site. Covered patio with pool.

Hardwoods in several rooms of this warm and inviting home including the kitchen and dining areas. $349,900

4762 Vernon Avenue Indianapolis

Adorable 3 bedroom with a fenced in back yard is ready for your family to move in. Buy this to live in or rent it out for $850 per month. $65,000

246 S Ritter Avenue Indianapolis

3BR home. Gorgeous hardwood floors throughout the first floor and all the BRs. KT has been updated with stone flooring, granite countertops & a colorful backsplash. $219,700

9554 Bay Vista E Drive Indianapolis

Amazing 2056 sqft in a condo! And wait ‘til you check out the location of this 2BR 2BA home. Be close to everything but still feel like you are away from it all nestled among the trees. $102,900

9457 Timber View Dr. Indianapolis

2BR, 1 full BA & 2 half BA townhome in charming Castlebridge. Finished bonus space in the basement and plenty of storage. Maintenance free living! $85,900

1313 S Riley Avenue Indianapolis

Charming 2BR with ew carpet, updated look & a nice yard with a covered front porch makes this a bungalow that won’t last too long. $48,500

WWW.WILMOTHGROUP.COM

9445 Timber View Drive Indianapolis

3BR 2.5BA townhome on a wooded lot.

Finished bonus space in the basement and a cozy fireplace are featured in this property. Maintenance free and cheaper than renting! $68,400

6644 E 19th Street Indianapolis

2BR bungalow in a quiet neighborhood.

This has a full basement for plenty of storage with laundry hook ups. Buy this to live in or rent it out for $750 per month. $50,000

8875 E 131st Street Fishers

This 2761 square foot single family home has 4 bedrooms and 4.0 bathrooms. This home is in the Hamlt Se School District. $299,000

817 S Timber Creek Dr. Indianapolis

Home with over 2000 SQFT. 4BR and 2.5BA. Fireplace in the family room, large closets and plenty of cabinet space as well. The open floor plan is great for gatherings. $159,900

3818 St Charles Street Anderson

Cute 2BR home! This home features some hardwood floors, a large carport, and a fenced yard. There is also a nice rear deck and a large mini-barn for extra storage. $15,400

4533 Payton Avenue Indianapolis

This 816 sqft home has 2 bedrooms and 1.0 bathrooms. It is located at 4533 Payton Ave Indianapolis, Indiana. This home is in the Lawrnce TP School District. $32,700

2200 Dakota Drive Lafayette

Over 1400 sqft in this 3BR 1BA ranch.

This would be a great rental or family home with the tree lined streets and sidewalks. Don’t wait! $82,000

37

Making a House Your Dream Home with Renovation Loans!

With the number of short sales and foreclosures on the market, many in need of repair or upgrades, renovation loans may give you the perfect opportunity to own the home you’ve always wanted. Renovation loans allow you to shop for and purchase a home in your desired buying area and in your price range, but that may need a new roof, upgraded bathroom ,new kitchen, windows, etc. Renovation loans can help you get a great deal, and make a good house GREAT! Unlike many lenders, Prospect offers a full line of renovation mortgages. Here are a few basics to help you understand the difference.

FHA 203k (Consultant)

Fannie Mae Homepath®

FHA 203k (Streamline)

Fannie Mae Homestyle®

Loan Type

Purchase or refinance

Purchase only

Property Type

Purchase and renovate most residential properties

Purchase and renovate a Homepath designated Fannie Mae-owned property

1-4 Unit Primary Resident 1 Unit Second Home 2-4 Unit Investment Properties 1 Unit Investment Property Minimum Down Payment

Gift Funds

√

Purchase or refinance Purchase and renovate most residential properties

®

√

Fannie Mae Hompath® (Streamline)

√

√

√

√

√

√

√

√

√ √

3.5%

20% for 2 - 4 unit primary and 1 - unit investment

Can be used for 3% down payment for owner-occupied, primary residence

Can be used for down payment for owner-occupied, primary residence

3.5%

Permitted per HUD guidelines

Mortgage Amount

3% for primary residence 1 - unit property 15% for 1 - unit property (second home or investment) 25% for 2 - 4 unit primary or investment

20% for 1 - unit primary and second homes

Based on “as completed” appraisal value or total acquisition (sales price + renovation costs) (lower of the two)

Mortgage Insurance (MI) Required

√

√

Maximum Renovation Amounts

No maximum as long as mortgage amounts are within county guidelines for FHA loans

Up to $35,000

Up to 35% of the as completed value, no more than $35,000

Allowable Repairs

From structural changes to landscaping, new appliances and more

From flooring to painting, remodeling kitchen/bath, appliances and more.

No major remodeling structural repairs or landscaping

From flooring to painting, remodeling kitchen/bath, appliances and more.

50% of the as completed value

50% of the as completed value, up to $35,000

From structural changes to landscaping, new appliances, swimming pools, and more

Prospect customers benefit tremendously from our internal Draw Department. We are able to disburse initial draws (payments for renovation work) within 12-14 business days from closing. This quick disbursement time allows us to provide funding for work to begin more quickly than other lenders who do not manage the draw process. As a result, you’ll have the peace of mind you need, knowing that our Draw Department is providing world-class service every step of the way.

I am a certified Renovation Lending Specialist and can answer all your questions about this exciting loan program, and work with you to get prequalified. Contact me today!

Chris Moore Renovation Sales Manager Prospect Mortgage NMLS# 418893 600 E. Carmel Dr., Ste. 122 & 123, Carmel, IN 46033 Office: (317) 847-4738 | Cell: (317) 847-4738 Fax: (877) 536-9262 chris.moore@prospectmtg.com

Visit My Website!

• Learn about home loans • Use loan calculators • Apply for a home loan

HomePath is a registered trademark of Fannie Mae.

Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state. Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company licensed by the Department of Corporations under the California Residential Mortgage Lending Act and operates with the following licenses: AK Mortgage Lender/Broker License #AK3296; AZ Mortgage Banker License #BK0903027; To check the license status of your CO mortgage broker, visit www.dora.state.co.us/ real-estate/index.htm; GA Residential Mortgage License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co.; MT Residential Mortgage Lender Licensee #120; NV Division of Mortgage Lending Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept.; Licensed Banker-NJ Dept. of Banking and Insurance #9932414; Operates as Prospect Lending, LLC in NY (Licensed Mortgage Banker - New York State Department of Banking); OR Mortgage Lender Licensee #ML-2006; PA Dept. of Banking license #22122; RI Licensed Lender #20021343LL, Broker #20041643LB; licensed by the VA State Corp.

Commission as MC-2195. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.

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Check your sump pump before big spring rains, consider a backup

The lowly sump pump in your basement or crawlspace may be something you rarely think about.

Before the biggest spring rains start to fall, it’s time to test it, check its operation and its discharge. Don’t wait until it should work and doesn’t.

If properly installed, the pump will be in a well of some kind. To test its operation, use a garden hose or a bucket to run water into the well. It might take more than you think to start pumping. Continue

filling until the pump has cycled on and off three times.

Turn off the breaker that provides electricity to the pump and reach down to see if debris has gathered around the intake. Clear it out to avoid future problems.

Plugging the pump into an extension cord will shorten its life. Ideally, you should have an electrician install a dedicated circuit (20A) and a cord long enough to reach it without interruption.

Next, go outside to check what discharge water is doing. It should be some distance from your home and on a slope to assure that the discharge will not flow back to the pump and have to be pumped over again and again. Be sure the discharge hose isn’t partially plugged with sticks and leaves.

The pump itself will give no indication that it’s going to quit, but it will after five to seven years. If this would cause a serious problem for you, it’s a good idea to invest in a battery-operated pump to back it up.

If the electric pump quits, the battery pump takes over.

Home sellers, before signing on the dotted line ...

What sellers need to know in order to make the sale go through After you’ve waited impatiently for home prices to rise, you’re finally ready to sell. And you have an offer or two.

You probably want to go ahead quickly with the deal so you can buy a new home or move to another city. But don’t get too excited before you know certain facts.

Is the buyer preapproved for the mortgage amount?

Preapproval is basic, but it doesn’t guarantee that the buyer’s loan will go through. One study showed that financing problems were responsible for 40 percent of failed deals.

Your agent will check with the buyer’s agent to make sure the buyer has provided the documentation the lender requested.

Consider a “financing contingency” agreement so you can entertain other offers if financing can’t be arranged by a certain date.

If the buyer is getting an FHA insured loan, your real estate agent will help you correct problems ahead of time that might be flagged in the appraisal, such as chipping paint.

Your agent might suggest that you do your own inspection to catch problems early.

Consider a cash offer A buyer who doesn’t need financing is more of a sure bet. A cash bid is typically lower, but the deal is faster to close and doesn’t require an appraisal. Some sellers feel that avoiding the appraisal process can compensate for a somewhat lower offer.

Prepare for the appraisal First, price the home according to your real estate agent’s advice. It should be in line with comparable homes in the area. Still, appraisers are often overly conservative in their valuations, even as home prices are rising.

As a seller, you need to think about what to do if the appraisal is low. In one case, the appraisal came in $5,000 short. The seller dropped the price by $2,500 and the buyers brought $2,500 more to the table.

Solve title problems early A preliminary title report doesn’t tell the whole story of your property. Have your real estate agent check for any problem that will delay the closing.

He or she will determine whether the title was actually recorded; whether an easement was granted that you aren’t aware of; or whether there’s a lien of some sort on the property that you don’t know about.

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Minimalists have moved to sleek wood cabinets White-painted cabinets have dominated American kitchens for years.

In homes built in 2012, 67 percent had white cabinets, according to the National Kitchen and Bath Association.

This year, many consumers, builders and kitchen remodelers are moving to a warmer feel. Upscale companies (like Corian) that are known for austere systems are delivering minimalist but still mellow kitchens in oak, walnut, larch and the like.

Minimalist cabinets have plain unframed fronts with recessed pulls and no trim of any kind. They are often paired with wraparound countertops. Cabinetry above the countertop often extends to the ceiling with one or two cabinets. The wood, though protected by lacquer, has a soft, raw look.

Customizers offer many finishes. One interior designer lists cerused oak, bleached walnut and sandblasted fir.

New York designer Russell Groves says there’s more to creating a warm kitchen than cupboards. Flooring, lighting, countertops and even knobs and pulls play a vital role. Quoted in The Wall Street Journal, he likes hardware for drawers in special finishes like painted bronze and blackened steel, which punctuates cabinets beautifully.

Some people want timber to come from locally grown trees so they can feel more connected to the outside.

& The guest bathroom requires some thought

It’s a party. The home is lovely and the guests’ half bath features a wall-and-a -half that’s beautifully painted with tropical vines and flowers. There’s fancy soap, hand lotion and a small but lovely sculpture on the marble counter.

As the 15 or 20 guests intermittently migrate in and out of the half bath, you decide it’s your turn. The room competes with the rest of the house for beauty, including the embroidered towels. There are two.

Each is either damp or wet from previous hand washings, and you can’t help but feel uncomfortable about wiping your hands where many others have already wiped theirs.

It’s not an uncommon situation even in upscale homes.

The solution is to provide a stack of high-quality paper towels for those who want to use them and a handy disposal basket.

For extra class, you can buy monogrammed towels.

Other matters that bring success to your party include soft lighting in the half bath, which makes guests feel attractive as they enjoy a respite from the festivities. One decorator offers a chair and a book of (very short) poems.

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IndyInvestorMagazine.com

  

  Do not depend 100% on your inspection for the future.

How can you protect your largest personal investment?

      

Lisamarie Schmidt

The Atlantis Realty Group 8645 E 96th Street Indianapolis IN 46256 800-276-8940

P.O. Box 797, Carmel, IN 46082 Call to Theorder Atlantis800-544-8156 Realty Group www.rwswarranty.com

     

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41

8645 E 96th Street Indianapolis, IN 46256 11115 Essen Court Indianapolis

$950/mo.

BLC#21293803

3 Bedrooms, 1.5 Baths, 1,117 Sq. Ft. www.tourfactory.com/

8836 E 35th Street Indianapolis

$174,900

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2173 S Delaware Streer Indianapolis

$39,000

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4 Bedrooms, 2 Baths, 1,968 Sq. Ft. www.tourfactory.com/

42

3727 N De Camp Drive Indianapolis

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532 Congress Indianapolis

$19,900

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363 Albany Street Indianapolis

$675/mo.

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5448 E 19th Street Indianapolis

$750/mo.

BLC#21296714

2 Bedrooms, 1 Baths, 944 Sq. Ft. www.tourfactory.com/

2344 Nelson Mooresville, IN

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8645 E 96th Street Indianapolis, IN 46256 5987 Forest Hill Blvd.

West Palm Beach, FL

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Now is the time to buy!

Atlantis Realty Group can help. We have an office south of Miami in Homestead, Florida. Check out our listings and others at www.AtlantisRealtyGroup.com

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43

IT’S A JUNGLE OUT THERE BUILDING THE BRIDGE HOME OWNERSHIP 203k GUIDE How do you turn a fixerTO upper into your dream home?

How do you turn a fixer upper into your dream home?

The Solution – the FHA 203(k) Loan!

The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done the house hasLoan! been purchased.

The Solution – theuntil FHA 203(k) HUD's 203(k) program can help you with the purchase or refinance of a property by

The purchase of athehouse needs repair is often a catch-22 situation, because the bank allowing you to roll-in costs ofthat repairs and improvements up to 110% of the after improved value of the home with a minimum 3.5% down payment. won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

We hope you find this 203(k) guide helpful. If you have more questions or would like to

HUD’s 203(k) program can help youmywith theinfo purchase or refinance of a property by allowing speak with a 203(k) specialist about a loan, contact is below. Happy House Hunting! you to roll-in the costs of repairs and improvements up to 110% of the after improved value of the home with a minimum 3.5% down payment.

We hope you find this 203(k) guide helpful. If you have more questions or would like to speak with a 203(k) specialist about a loan, my contact info is below. Happy House Hunting!

Brought to you by: Brought to you by:

Michael Kerkhof

AmeriFirst Home Mortgage

Michael Kerkhof Office 317-254-8800

AmeriFirst Home Mortgage Cell 317-371-5079 Officemkerkhof@amerifirst.com 317-254-8800 NMLS #247367 Cell 317-371-5079 mkerkhof@amerifirst.com NMLS # 247367

NMLS ID 110139

44

AmeriFirst Home Mortgage

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance LenderThe ID 110139 programs.

Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for 800.466.5626 expanding homeownership opportunities.

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203(k) - How Is It Different?

of the property being financed. A portion of the loan proceeds are used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. You may also roll in up to six months of mortgage payments if the HUD consultant determines you need to be displaced from the home during the repairs.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.

We will discuss both of these loans in detail but first letâ&#x20AC;&#x2122;s discuss the 203(k) process from start to finish.

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

These are two Different 203(k) Loans Available

Hereâ&#x20AC;&#x2122;s What You Can Expect:

1. Find a Property and Make the Offer - A potential homebuyer locates a fixer-

upper and executes a purchase agreement or sales contract after doing a feasibility analysis of the property with their real estate agent.

2. Find a FHA approved Lender and Meet with a 203(k) Specialist

- The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal from licensed contractors showing the scope of the work to be done, including a detailed cost estimate on each repair or improvement of the project.

3. Appraise the Property - The appraisal

is performed to determine the value of the property Choosing which loan suits you best will depend after renovation. The appraiser will also determine on the amount of improvement your property if there are any additional repairs necessary for the property to meet minimum FHA property needs. guidelines. Any health or safety issues would be Streamlined: The 203(k) Streamline is an addressed at this time. all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase 4. Loan is Approved and Closed - The of an existing home and make improvements or borrower, property and requested improvements upgrades up to $35,000 before move-in. There are are approved and the loan closes for an amount no minimum repair costs and the borrower must that will cover the purchase or refinance cost of the property, along with the improvement costs. The occupy the property. amount of the loan will also include a contingency Standard: The Standard 203(k) is an all-in-one reserve of 10% to 20% of the total renovation costs loan used when homes need major rehabilitation, and is used to cover any overages resulting from or when repairs are structural, involves landscaping, extra work required to complete the work proposed. or when the renovation costs exceed $35,000. There At closing, the seller of the property is paid off and must be a minimum of $5,000 worth of repairs, and the remaining funds are put in an escrow account again, the borrower must occupy the property. FHA to pay for the repairs and improvements during the loan limits are based on property type and location rehabilitation period.

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5. Work Begins on the Property

(2) Must be owner occupied (no investors)

The mortgage payments and renovation begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.

(4) The lesser of 5 units in the project or 25% of the total number of units can be undergoing rehabilitation at the same time

6. Disbursements & Payment (Draws) - Escrowed funds are released to the

contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines there will be no liens on the property. The borrower will always approve the release of funds to the contractor.

(3) Rehab is limited only to the interior of the property

(5) The maximum amount of the loan cannot exceed 100% of the after improved value (6) No more than four condo units per building

How the Program Can Be Used This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: (1) To purchase a home and rehabilitate it.

Eligible Properties

(2) To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it.

To be eligible, the property must be a one- to fourfamily dwelling that has been completed for at least one year. In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

(3) To refinance an existing mortgage and rehabilitate the home.

A 203(k) mortgage may be originated on a “mixed use” residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) The commercial use will not affect the health and safety of the occupants of the residential property; and (3) The rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

A 203(k) mortgage may be originated on a condominium provided: (1) The condominium project has been approved

by FHA

46

Features of the 203(k) Streamline Eligible and Ineligible Improvements for the 203(k) Streamline Eligible Improvements include: 203(k) Streamlined loan is intended to facilitate uncomplicated rehabilitation and/or improvements to a home. Eligible improvements include: • Repair/Replacement of roofs, gutters and downspouts • Repair/Replacement/upgrade of existing HVAC systems • Repair/Replacement/upgrade of plumbing and electrical systems • Repair/Replacement of flooring • Minor renovation, such as kitchens & baths, which do not involve structural repairs • Painting, both exterior and interior

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• Weatherization, including storms windows and doors, insulation, weather stripping, etc.

• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens • Septic system and/or well repair or replacement • Accessibility improvements for persons with disabilities • Lead-based paint stabilization or abatement of lead-based paint hazards • Repair/replace/add exterior decks, patios, porches • Basement finishing and renovation with does not involve structural repairs

• Basement waterproofing • Window and door replacements and exterior wall re-siding

Ineligible Improvements include: • Renovation involving structural changes, like moving a load-bearing wall, or new construction, like adding rooms • Landscaping or Fencing • Work that will not start within 30 days of loan closing or will cause the borrower to be displaced from the home for more than 30 days or renovations that will take more than 6 months to complete • Luxury items like swimming pools, hot tubs, tennis courts, etc.

Contractor Requirements

Borrowers must use contractors to complete rehab unless borrower can provide documented proof that they can perform the work. Example: Borrower is a licensed plumber or electrician, etc.

Timelines & Disbursements for the 203(k) Streamline

Timelines - When the loan closes, the mortgage proceeds will be disbursed to pay off the seller

of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. Depending on the type of improvements the homeowner has up to six (6) months for completion.

Disbursements & Payments (Draws) - No more than two payments may be made to each

contractor. The first payment is intended to defray material costs and shall not be more than 50% of the estimated costs of all repairs and improvements. The Lender will allow the first payment at closing to cover for, and not exceed, actual required contractor deposits, building permits, and/or the cost of building materials incurred prior to construction.

Before a final disbursement is made, the borrower must sign a statement acknowledging that the work has been completed in a workmanlike and satisfactory manner. A final inspection is required regardless of the improvement or repair, and must be done at completion before the final disbursement is released.

Any leftover funds are applied to principal balance of the loan.

Features of the Standard 203(k)

FHA Approved Consultants

- All Standard 203(k) loans must use a FHA Approved 203(k) consultant. The HUD consultant will be very helpful as they will assist you in determining the scope of repairs and the budget for the work to be done. Once the project has been determined the HUD consultant will give you a “specification of repairs” plan that will detail the work to be completed and the associated costs. The HUD consultant will also carry out the disbursement and final inspections needed to pay your contractors. Basically they are there to help you through the construction process and verify all work is completed satisfactorily and as stated and that the home meets HUD’s minimum property guidelines when repairs are completed.

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Eligible Improvements for the 203(k) Standard Homeowners can use the 203(k) program to finance “desired” repairs or upgrades such items as painting, room additions, decks and other items even if the home does not need any other improvements.

Eligible improvements can range from relatively minor (though exceeding $5,000 in cost) to virtual reconstruction: a home has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place.

consultant. Inspections are required prior to each disbursement.

A ten (10) percent holdback is required on each disbursement released from the Rehabilitation Escrow Account. The Holdback/Contingency Fee is: 1. Used as an incentive to insure all work is completed and to cover health, safety and unplanned issues that arise during construction.

2. Required on FHA 203(k); recommended on Streamline 3. Required on properties older than 30 years and/ or over $7,500 in rehabilitation costs.

The types of improvements that borrowers may 4. A minimum of 10% of the cost or rehabilitation make using Section 203(k) Standard loan financing and maximum of 20%. include: If not used (after all construction is complete) the • All of the improvements listed in the eligible remaining amount will be applied to pay down the principal balance of the loan. The total of all improvements for a streamlined 203(k) holdbacks may be released only after a final • Structural alterations and reconstruction, like inspection of the rehabilitation and issuance of the room additions, repair of termite damage, major Final Release Notice. remodeling of kitchens and bathrooms, finishing an attic or basement, adding a second story to a home, etc

Maximum Mortgage Amount Calculation

• Major landscaping and site improvement including correction of grading and drainage problems, tree removal and repair of sidewalks and driveway, if they are a safety hazard to the property.

Timelines, Disbursements & Inspections for the 203(k) Standard

Timeline - When the loan closes, the mortgage

proceeds will be disbursed to pay off the seller of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. The homeowner has up to six (6) months to complete the work depending on the extent of work to be completed.

Disbursements - As construction progresses,

funds are released after the work is inspected by a HUD-approved inspector. A maximum of 5 draws are allowed. Draw amounts may vary and are based on the work performed. Disbursements are made as each phase of the project is completed based on the draw paperwork provided by the

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REFINANCE:

Based on the lesser of: 1) The existing mortgage balance before rehabilitation, plus the estimated cost of rehabilitation and allowable closing costs or 2) The lesser of the As-Is value plus rehabilitation costs or 110 percent of the After-Improved value multiplied by 97.75%.

PURCHASE: The maximum mortgage amount is based on the lesser of 1) or 2) of the below multiplied by 96.5%.

1) The As-is value or the purchase price of the property before rehabilitation, whichever is less, plus the estimated cost of rehabilitation or 2) 110% of the After-Improved value of the property.

We hope you found this 203(k) guide to be helpful during the home buying process. The following pages contain additional information and resources to help build a smooth and straight path to your dream home.

IndyInvestorMagazine.com

Potential Home Checklist

Having a record of what each home offers can make your final decision much easier.

Date Seen ____________________ Address _____________________________ Price __________ Seller __________ Home Age _____ Neighborhood _________ Style of home

__2-Story __Cape Cod

Construction Type __Wood

__Ranch __Condo

__Brick

Exterior Features Landscaping Fencing Porch Paint Patio Deck Garage

__Good __Good __Good __Good __Good __Good __1 Car __Good Roof Condition __Good Sidewalks __Yes Well-Mainteined Neighborhool

__Split Level __Townhouse

__Stucco

__Fair __Fair __Fair __Fair __Fair __Fair __2 Car __Fair __Fair __No

Room/ Location

__Traditional

__Poor __Poor __Poor __Poor __Poor __Poor __3 Car __Poor __Poor

Utilities

__Finished

__Nonexistent __Nonexistent __Detached

Free eBooks for Free More eBooks Information for More Information

If you’d like to learnIfmore you’dabout like tothe learn FHAmore 203kabout loan program, the FHA 203k or credit loaninformation program, orfor credit buying information a for buying a home, or the mortgage home, process or theinmortgage general, we process offerin several general, freeweeBooks. offer several You can free click eBooks. one ofYou can click one of the pictures below to thefind pictures the eBook belowthat’s to find right thefor eBook you!that’s right for you!

__Yes

__No

__Carpet

__Hardwood

__Poor

__Work __Schools __Highways

__Shopping __Churches

Recent Sales in neighborhood:

__Airport Area __Train Station

Free eBooks for More Information

If you’d like to learn more about the FHA 203k loan program, or credit information for buying a home, or the mortgage process Free eBooks Free for More eBooks Information for More Information If you’d like to learnIf more you’dabout like tothe learn FHA more 203kabout loan program, the FHA 203k or credit loan information program, or for credit buying information a for buying a in general, we offer several free eBooks. You can click one of home, or the mortgage home, process or the in mortgage general, process we offerinseveral general, free weeBooks. offer several You can free click eBooks. one ofYou can click one of __Poor the pictures below the to find pictures the eBook belowthat’s to find right thefor eBook you!that’s right for you! the pictures below to find the eBook that’s right for you. __Poor

__Poor

__Poor

Let Us Know How We Can Help NMLS ID 110139

__Poor

__Poor

__Poor NMLS ID 110139

__Poor

NMLS ID 110139 AmeriFirst Home Mortgage AmeriFirst Home Mortgage 800.466.5626

800.466.5626

For more than 25 years, AmeriFirst Home Mortgage has helped first time home buyers and other clients realize the dream of leaving that rental behind, and owning a house.

Whether it’s HomePath, conventional lending, an FHA program, VA loan, Rural Development or a 203k mortgage loan, the team at AmeriFirst is here to find the right mortgage for you. AmeriFirst is licensed in: Michigan, Minnesota, Wisconsin, Indiana, Illinois, Ohio, Kentucky, Tennessee, North Carolina and Florida. There is sure to be an office near you.

NMLS ID 110139 AmeriFirst Home Mortgage AmeriFirst Home Mortgage 800.466.5626

800.466.5626

We’re easy to find. __Tile

Type of Heating __Hot Water __Gas __Electric __Oil Insulation __Fiberglass __Cellulose __Foam __Nonexistent Central Air __Yes __No Plumbing Condition __Good __Fair __Poor Sump Pump/Drainage System __Yes __No Connected to Sewer System __Yes __No Age/capaciy of water heater _____________ Age of heating system _____________ Age of electrical wiring _____________

Easy proximity to:

Renovation Needed

__Nonexistent __Nonexistent

Size _________________________ Eat-In __Yes __No Flooring __Ceramic __Vinyl __Wood __Carpet __Good __Fair Appliances __Good __Fair __Poor __Nonexistent Cabinets __Good __Fair __Poor Windows __Good __Fair __Poor Dining Room Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Living Room Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Fireplace __Good __Fair __Poor __Nonexistent Den Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Linen Closet __Good __Fair __Poor __Nonexistent Total Bedrooms _____________ Bedroom 1 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Bedroom 2 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Bedroom 2 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Total Bathrooms _____________ Master Bath Size _________________________ Flooring __Ceramic __Vinyl __Wood __Good __Fair Fixtures __Good __Fair __Poor Tub __Good __Fair __Poor __Nonexistent Guest Bath Size _________________________ Flooring __Ceramic __Vinyl __Wood __Good __Fair Fixtures __Good __Fair __Poor Tub __Good __Fair __Poor __Nonexistent Laundry Room Location _________________________ Washer __Good __Fair __Poor __Nonexistent Dryer __Good __Fair __Poor __Nonexistent Good Close Space __Yes __No __No

Problem Area

__Vinyl Siding __Aluminum Siding

Kitchen

__Yes

Duplicate this page for use as you inspect prospective homes for improvements needed.

Address_______________________________________________

Interior Features

Basement

Renovation Checklist

__ Industry __Doctor/Dentist __Public Transportation

Address____________________________________________ Size ____________ Price_______________ Address____________________________________________ Size ____________ Price_______________ Address____________________________________________ Size ____________ Price_______________

The website: AmeriFirst.com We’re on other social media sites as well.

See interviews with our team & other videos.

Read the blog & keep up with the industry.

Copyright Notice & Legal Notice ©2012 The AmeriFirst Home Mortgage Corporate Office 616 W. Centre Avenue Portage, MI 49024 Feel free to share this (FOR FREE) with anyone you want to. All rights reserved. Source of Information: U.S. Department of Housing and Urban Development (www.hud.gov) While attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions, or contradictory information contained in this document. This document is not intended as legal, accounting or investment advice. The reader of this document assumes all responsibility for the use of these materials and information.

IndyInvestorMagazine.com

49

e m a g ’ e u c s e r e sur

lo c e r o f ‘ rk the

o w l l i t s tists

Con ar

Because some homeowners are unable to make their mortgage payments, they may grasp for any plan they think will help them avoid foreclosure. They might even come up with thousands of dollars to pay unscrupulous con men. Here’s how the frauds work.

• Scammers set themselves up with an official-sounding name, one similar to a legitimate organization, and claim to be approved to make loan modifications.

After taking $4,000 of the homeowner’s money, they disappear.

• In another fraud, scammer companies send a salesperson to call on homeowners and say they can audit their mortgage documents and use the violations to force their lender to approve a loan modification. They tell people they have found violations 90 percent of the time. These types of scams typically ask for $1,000 to $5,000 from the homeowner.

• One con man collected $2.8 million from various homeowners by promising them he could guarantee a loan modification under the Home Affordable Modification Program (HAMP). He told them to stop making their payments and to avoid contact with their lenders. Some of his victims would have been able to modify their mortgages if they hadn’t stopped making the payments.

• Three scammers were arrested on charges of fraud against California homeowners. In addition to requiring up-front fees in exchange for loan modification assistance, they told one homeowner to reject his lender’s offer of a loan modification because they could get a better deal. Instead, the home was lost to foreclosure within four months.

• The attorneys general settlement with the five largest mortgage lenders brought out a new group of people who call homeowners and tell them they represent the lender. They request $500 or more to facilitate the homeowners getting money from the settlement.

The homeowner never gets anything.

S

Ho

Wa ma you Ins AS few

Ho

CALLING ALL REAL ESTATE AGENTS! You don’t have time to submit a bid to HUD or don’t know how?

You think HUD is a hassle or too much work?

We can help.

Let us do the work for you. We will pay you a 40% Referral Fee and we do all the work.

Contact us as HUD@atlantisrealtygrp.com or 800-276-8940x2 50

IndyInvestorMagazine.com

Silc step the ide Wi wil and

Ho

Mo hom

x, Jeff Silco

Owner

SERVICES Homeseller’s Pre-Listing Inspections

Want a Competitive edge on the housing market? Understanding the condition of your home is important. Silcox Home Inspections, Inc. can help you sell your home ASAP by giving your buyer confidence with fewer surprises in a real estate transaction.

Homeseller’s Pre-Closing Inspections

Silcox Home Inspections, Inc. will walk you step-by-step through the home and assess the property from roof to foundation to identify safety issues and current conditions.

With your thorough home inspection, we will reduce the likelihood of unfortunate and costly discoveries.

Home Warranty Inspections

Most brand-new home builders provide homeowners with a 12-month Builder’s Warranty. Ordering an inspection before the warranty expires gives the homeowner a professionally prepared report to go over with the builder addressing possible issues.

New Construction Inspections

These inspections are completed for home owners or construction lenders during the construction process as part of the quality assurance checks.

Termite Inspections & Radon Testing

Do not leave any stone unturned when inspecting a home for sale or purchase. Damage from termites and exposure to radon can be costly and stressful. Your peace of mind is worth it!

Silcox Home Inspections, Inc. provides a thorough evaluation of your home inside and out:

• Structure and Foundation • Electrical Systems • Plumbing Systems • Roofs and Attics • Water Penetration • Property and Site • Gas Leak Detection • Central Heating and Cooling • Basements and Crawl Spaces • Gutters and Drainage • Walls, Floors, and Ceilings • Porches and Decks

IndyInvestorMagazine.com

It’s More Than Just an Inspection...

It’s Peace of Mind.

Silcox Home Inspections

& Construction Management, Inc. 10906 Brigantine Drive Indianapolis, IN 46256 Ph. 317-710-1456 • Fax 317-284-1456 JeffSilcox1@comcast.net www.SilcoxHomeInspections.com

51

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Feature

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$159,900

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626 N Dearborn Street Indianapolis

$600/mo.

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2 Bedrooms, 1 Baths, 2,652 Sq. Ft. www.tourfactory.com/

IndyInvestorMagazine.com

$189,900

BLC#21288906 3 bedroom, 3.5 bath town house in historic Herron Morton neighborhood. Large open floor plan with great size living and dining room that has a two sided fireplace. Open kitchen with nice countertops.

Close to everything downtown has to offer.