Jeremy, Author at ATG Title

Realtor Vs. Real Estate Agent: What’s the Difference?

January 12, 2021 By Jeremy

Whether you’re looking to buy or sell a property, or assist people in buying or selling property, you’re likely trying to figure out what the difference between a real estate agent and a realtor is.

Although the terms are used interchangeably by many, there is a significant difference between them. Knowing the difference can be a defining factor of your buying and selling experience, and is an absolute must for those taking on a new profession in the real estate industry.

What’s the difference between a real estate agent and a realtor?

The difference between a real estate agent and a realtor is that a realtor is an agent that is an active member of the National Association of Realtors (NAR) and a real estate agent does not have to be. While both have a real estate license, a realtor must adhere to a higher level of standards and ethical duties than an agent.

Put simply, becoming a realtor is the next step to take after becoming a real estate agent for many career professionals.

Real Estate Agent: A professional who assists in the buying or selling of properties. The requirements of becoming a real estate agent vary by state. State requirements typically determine the necessary coursework one must complete before taking the exam to obtain their real estate license. All agents must be knowledgeable in local, state, and national laws to obtain their license. After completing the course and obtaining their license, agents must continue their education and renew their licenses every two years.

Realtor: A real estate agent that is an active certified member of the National Association of Realtors. To become a realtor, an agent must have a valid real estate license and an impeccable professional conduct record. Members of the NAR are required to take and pass a code of ethics class and follow an extensive Code of Ethics to protect the association’s reputation.

Becoming a member has the benefit of making an agent more desirable to potential clients due to Realtors’ excellent reputation. Furthermore, the organization works to protect the member’s interests. [Read more…]

REO Foreclosures – Worth the Risk Or a Hard Pass?

January 5, 2021 By Jeremy

If your property leads funnel has dried up, and advertising simply isn’t working, you may consider investing in a foreclosed property. If that sounds like you then you’ve likely come across the term REO foreclosures and heard that they are a great way to boost your investment portfolio. But that also leads to questions about the sustainability of REO foreclosures as a way to grow your lead funnel and as a stable business model.

Are these as risky as a traditional foreclosure? Is there a difference, and should you take the chance of investing in one? We’re here to explain what these types of properties are so that you can make the call.

Below you will find questions and answers related to REO foreclosures to help you make a decision on if they are a good way for you to boost your lead funnel and scale your real estate investing business.

What is an REO foreclosure?

REO means Real Estate Owned and the term REO Foreclosure refers to a piece of property that is being sold by a bank or lender. A property becomes listed as an REO when it fails to sell at a traditional foreclosure auction. The bank reclaims the property and lists it on the MLS or other conventional real estate listing sites.

How do REO foreclosures work?

The length of a foreclosure process can vary greatly, and the home usually goes through many stages before it lists as an REO foreclosure. For an in-depth look at some of the foreclosure process stages, you should refer to our guide on the differences between short sale pre-foreclosure and foreclosure.

After the property is taken back by the lender, the lender will try to sell the property at a public auction. If no offer is made during the auction or meets the lender’s needs, they will reclaim the property and list it as an REO. [Read more…]

How the BRRRR Method Works in Real Estate Investing

December 22, 2020 By Jeremy Leave a Comment

You don’t necessarily need loads of upfront cash to have success in real estate investing. An effective strategy is far more critical. The BRRRR Method for real estate investing is a popular but mostly unknown strategy because it allows you to start small and work your way toward bigger and better goals.

Many successful real estate investors begin with the BRRRR investing strategy and climb their way to the top. But that doesn’t mean they don’t still use it once they get there.

What is the BRRRR Method?

BRRRR is an acronym for Buy, Rehab, Rent, Refinance, Repeat. The BRRRR Method’s goal is to end with an increase in the value of a property so that you can return your initial investment and begin again while collecting cash from tenants.

An example of success with the BRRRR Method is the ability to refinance a rental for $130,000 when your total investment is just $100,000. You then use the refinancing money to cover investment costs while collecting rent monthly.

You then repeat to generate another property you can continuously collect rent from. Each time you repeat, your passive income and net worth rapidly increase.

How does the BRRRR strategy work?

The process begins with buying a property that needs work with a low listing price. You’ll want to find a property that needs some updates but not a total overhaul.

In most cases, your initial property investment will be funded by hard money through a short-term lender. No matter where the money comes from, you need to make sure that you have enough to cover the property’s cost and renovations. [Read more…]

What is an Escalation Clause in Real Estate?

December 15, 2020 By Jeremy Leave a Comment

When making an offer on a home, you want to stay under the maximum amount you’re willing to pay but high enough to outbid other sellers. You might also want a way to track other offers so that you can continuously outbid them to increase your chances of making the deal. This is what an escalation clause does, which is an extremely effective tactic in the right situation.

What is an escalation clause in a contract?

An escalation clause is an addendum submitted in a multiple-offer situation to improve the odds that you will outbid other buyers.

For example, you might make an offer on a property for $325,000, but you can include an escalation clause that states you are willing to pay a maximum of $335,000 if a bidding war begins.

The clause also states that your offer will increase in set intervals to counter other offers up to the max offer, or escalation cap. [Read more…]

What Does Tenancy by the Entirety Mean For Couples?

December 8, 2020 By Jeremy Leave a Comment

Deciding how to take ownership is a critical step when purchasing real estate. It determines how your name will appear on the title and how the property is processed and protected. In some states, married couples can take a unique form of ownership known as Tenancy by the Entirety.

What is Tenancy by Entirety?

Tenancy by the Entirety (also known as Tenants in the Entirety) is a form of ownership that legally recognizes the married couple as a single entity. In doing so, spouses hold equal ownership of the property, which arrives with many perks.

The driving concept of Tenancy by the Entirety is to protect either spouse’s interest in a piece of property from events that exclusively involve the other. The most notable form of protection it offers is transferring full ownership to a surviving spouse when the other dies without probate.

But the advantages are numerous, and that is precisely why many individuals view it as the best form of ownership for married couples to pursue when available to them. Here are the key benefits of this form of ownership:

One spouse cannot sell the property without consent from the other.
If one spouse dies, the other assumes full ownership without probate.
Debt collectors cannot put liens on the property to collect a debt from a single spouse.

And while this form of ownership has its advantages, some setbacks may force one to consider other options. As an example, many may view sharing equal ownership of a property as more of a drawback than an actual benefit. [Read more…]

What is House Hacking in Real Estate?

December 1, 2020 By Jeremy Leave a Comment

If you’re a beginner investor and are looking to save money on your initial investment, house hacking may be the way to go. As you can guess by the name, it is a tactic that seems too good to be true—but it’s a genuine practice. Here’s how you can use house hacking strategies to kickstart your real estate investment career.

What is house hacking?

House hacking is a real estate investment strategy where the investor rents out a portion of their primary residence so that rental payments cover the costs of the mortgage and expenses.

In most cases, the investor purchases a multi-family property and lives in one unit while renting out the others. That is why it can be highly desirable for many because even though you share a property with others, you still have the privacy of an entire unit. [Read more…]

Clear to Close: What Does This Mean?

November 24, 2020 By Jeremy Leave a Comment

You’ve received the news that you’re clear to close, and that can be as exciting as it is confusing. It does mean you’re nearly there, but some things need to occur before you can finally get the set of keys to your new home or investment property.

We’re glad to help clear the air and help you prepare for the final steps you need to take.

What does clear to close mean?

Clear to close means the lender is now ready to confirm the closing date with the title company or attorney. This also means you need to kick it into high gear and prepare for the closing date.

Before you are clear to close, you are to meet the lender’s required conditions. Having to get homeowner’s insurance and title insurance are typical examples. After completing the requirements, an underwriter approves the loan documents, and you are “clear to close.”

Can you be denied after clear to close?

Yes, you can still be denied after you’ve been cleared to close.

While clear to close signifies that the closing date is coming, it doesn’t mean the lender cannot back out of the deal. They may recheck your credit and employment status since a considerable amount of time has passed since you’ve applied for your loan. [Read more…]

What is Title Vesting in Real Estate?

November 17, 2020 By Jeremy Leave a Comment

Upon purchasing a new home, you and/or your spouse will come across a document that asks how you would like to take vesting on the property. Another time you’ll hear about title vesting is if you’re part of a group of friends or relatives buying a property together, such as a vacation home or cabin.

It can be a confusing question in the world of real estate, and your answer can significantly impact your rights as an owner. That is why it is important to know the ins and outs of title vesting when buying a property. If you feel stuck, no worries; we are here to talk about what title vesting is and everything you need to know to feel comfortable when making a decision.

What is Title Vesting?

Title vesting is simply taking ownership and the official rights of the title on a property. It is necessary when more than one individual appears as the property owner on the title.

How you hold vesting is dependent on a few factors:

Are you married?
Do you share ownership equally with another individual?
Do you own a portion of the property in relation to what you pay for it?

These are all factors that come into play when deciding on how to take ownership of the property.

In most states, there are four common ways to hold a title. Which you decide to take is mostly dependent on how you answered the questions above. [Read more…]

What is Capital Gains Tax on Real Estate? How Do I Calculate It?

November 10, 2020 By Jeremy Leave a Comment

If you’re selling your house or an investment property and are excited to make a good profit on it, then you’re not the only one! The IRS is also looking forward to the deal closing. That’s because the Capital Gains on real estate can be taxable. As always, these types of unique taxes are sometimes challenging to understand.

No worries; we’re here to help you understand a little more about capital gains taxes, when they can apply, and how much you can expect to pay. We also share some pointers to help you reduce capital gains taxes or possibly even avoid them.

What is Capital Gains Tax?

Capital Gains Tax is a tax applied on the difference between what you pay for an asset and how much you sell it for. For example, if you buy a home for $300,000 and sell it for $500,000, you are making $200,000. That $200,000 is considered capital gains and can be taxable.

With that in mind, the IRS approaches capital gains tax in one of two ways. If you own a property for less than a year before selling it, they will tax it as part of your regular income; this is short-term capital gains tax. However, if you own it for longer than a year, it is filed as a long-term capital gains tax, and you will pay 0%, 15%, or 20% based on your current tax bracket.

The primary concern for many is that capital gains can influence their total income and bump them into a higher tax bracket. Long Term capital gains take this into account and are therefore taxed separately. Short-Term Capital Gains are considered part of your income and taxed as such; they can bump you into a higher bracket.

If you’ve never heard of Capital Gains taxes, that may because you live in a state that doesn’t have or enforce them.

States that do not or may not enforce capital gains taxes may include:
[Read more…]

How to Buy a Foreclosed Home From Start to Finish

November 3, 2020 By Jeremy Leave a Comment

The buying process for a foreclosed home is reasonably straightforward. But knowing where you can find these properties isn’t—mostly because investors quickly buy them.

Like all things in real estate, tricks of the trade exist. This article is designed to help you purchase your first foreclosed home while not loading you with tons of jargon and industry based terminology.

Why Buy a Home in Foreclosure?

Foreclosed homes are an exciting opportunity for real estate investors because they almost always sell for a much lower price than market value. The reason is simple—the bank only wants to make back the money owed to them for the property and rid themselves of the burden as quickly as possible.

If this amount is less than the property is worth, you can flip it for market value and make a profit. Or you can find your next personal residence for a low price.

Where to Find a Foreclosed Home

Below are some of the places you can find foreclosed homes:

MLS or Traditional Real Estate Listing Sites (Zillow, Realtor, Redfin, etc.)
Foreclosure Databases like county websites, foreclosure.com or GreatDCDeals
Banks REO Department
HUD Store
Networking with Industry Professionals (Repo men, Bank REO personnel, other Agents)

But there are things to keep in mind before purchasing a foreclosed home. [Read more…]