Jeremy, Author at ATG Title

Closing Disclosure Timelines & The Three Day Rule

September 22, 2020 By Jeremy Leave a Comment

As you’re closing on a home, helping a client, or brokering a deal; you’ll come across a document called the closing disclosure (or CD). A closing disclosure can become very frustrating and cause anxiety when you first read it. Why? Because you’re told to act immediately upon receiving it, and let’s face it, if you’re not a lawyer this can be intimidating.

The anxiety and confusion is mostly caused because the closing disclosure will only be in your possession just a few days before your closing appointment, and you’ve already had to deal with a million papers and meetings and inspections. This just adds too your pile of work.

But never fear! We’re here to help you through the ins and outs of the closing disclosure and purchasing a property so you can comply with the three day timeline.

For starters, you already know it’s your job to review the closing disclosure immediately upon receiving it. The three day timeline exists to ensure that you have enough time to remedy any discrepancies or issues within this document.

The first and most important thing to do with your closing disclosure is to compare the loan estimate on the document with the loan papers you received after applying for your loan. You are making sure the closing disclosure matches the loan estimate as closely as possible to avoid hold ups at closing.

It’s important to note that the loan estimate is an estimation of payments and fees. Some variances are to be expected, while others shouldn’t be present at all. If they do exist, you want to address them before closing.

The timeline helps promote a smooth closing process. Nobody wants you to feel confused or frustrated at the closing table. Instead, they want you to feel prepared and collected. The agent handling your closing services will also be happy to explain anything else that has your worried at the appointment and likely before.

The Three Day Rule

But how long before closing should you be supplied with the CD? This is where the Three Day Rule comes into play. This rule is simply put into place to ensure you have received the closing disclosure three days before closing.

Receiving the closing disclosure three days in advance ensures you will have had enough time to deal with any potential issues and know what you will owe upon consummation. You know what will be expected of you well before you become legally obligated to fulfill your end of the contract.

How Does the Three Day Rule Work?

The three-day rule applies to business days, including Saturdays. But Sundays and Nationally recognized holidays do not count. This means you may technically have more than three days before closing to review the document. [Read more…]

What a Property Easement Is And How it Impacts a Property

September 15, 2020 By Jeremy Leave a Comment

Your offer got accepted, and then they drop the news on you. There’s an easement on the property. At first, it may seem like an intrusion, but ultimately, it’s not all that bad. You may hardly notice anything at all.

A property easement is a nonpossessory right to use or enter a piece of property for a specific purpose. It does not give anyone the right to use your property for any other purpose than is explicitly stated.

Easements are typically issued for two reasons.

The most common cause is to allow utility companies to access and maintain power lines.
Otherwise, an easement is commonly granted to enable another landowner to travel across your property to access the main road.

In any case, it does not grant any individual access to your property in its entirety. There are some instances where it may allow construction on your property, and you will need to pay careful attention to this.

There are many other possible reasons for an easement to be granted on a piece of property. Different types of easements are issued because of this. For example, an easement granted to a utility company is not the same that will appear when another property owner simply needs access to roadways.

Understanding how one will use your property becomes very apparent once you know the different types of easements.

Types of Easements

[Read more…]

Plat Maps – What They Are and Why They Matter.

September 8, 2020 By Jeremy Leave a Comment

Plat Maps What They Are and Why They Matter

If you’re buying a home or you’re a new real estate agent, your about to get presented with a plat map and likely a plot map too. Don’t let these make you nervous. Your agent or title company will be happy to walk you through them and why they matter, and we’re here to help with the blog post below.

What is a Plat Map and How is it Used?

A plat map is a diagram and is used to show how your purchased property is divided within your county, city, or neighborhood. It serves as a guide to a tract of land that has been created by licensed surveyors.

The Plat Map is drawn to scale to record the plots of land and property boundaries. It may also be used to determine easements, nearby streets, and flood zones.

Alone, the document doesn’t seem like much. But among the piles of paperwork associated with a property purchase, a plat map can look like a monster of a document. We’re here today to help you understand a little more about what you’re looking at.

Is a Plat Map Required?

A plat map is typically only required if:

the property will be subdivided.
the property will be turned into a public access location.
someone has been granted an easement on your property.

A plat map will be included with the paperwork you receive when you purchase a home. In this case, it can serve as a useful point of reference for determining what you may legally do on your property.

For example, if an easement on your property exists, the plat map will help you find where it is. This is important because it will help you understand where you can legally build structures or make other changes to the property.

During the title search, this map also serves an essential function. The title company will reference the plat map to determine that the seller has the right to sell what they are trying to. In an instance where sellers are trying to sell more property than they own, a plat map will reveal this to the title company.

Plat Map Safety Provisions

A plat map can be a useful tool to protect your property and belongings if another landowner tries to sell or modify what is rightfully yours. It may even prevent you from losing your home.

If you’ve purchased a piece of land with an easement that allows a public roadway to cut through it in the future, you’ll need to be aware of its location. [Read more…]

Comparative Market Analysis: What it is & How to Use It

September 1, 2020 By Jeremy Leave a Comment

If you’re on this page, you’re currently trying to determine a fair selling price for a home on the market and heard about comparative market analysis. Don’t let the term scare you. It’s quite simple.

A comparative market analysis, or CMA, is a tool used to estimate a home’s value based on the selling price of similar properties recently sold within the immediate area. It does not generate a suggested listing price for the home. It is merely the means to help determine one.

Learning how to do a comparative market analysis can also be one of the essential tools when trying to sell a home quickly, make a good profit, or make a reasonable offer on a home. Once you learn this simple concept, it becomes one of the more exciting and helpful tools in your real estate arsenal.

What is a market analysis on a home?

A comparative market analysis, or CMA, is a tool used to estimate a home’s value based on the selling price of similar properties recently sold within the immediate area. It does not generate a suggested listing price for the home. It is merely the means to help determine one.

Agents and Brokers both create CMA reports that may be available to you. In this case, it’s rather easy to do the research needed to determine the best listing price. Alternatively, you can perform your own CMA by using real estate listing sites to search for comparable properties. [Read more…]

The Difference Between a Short Sale, Pre-Foreclosure, and Foreclosure

August 25, 2020 By Jeremy Leave a Comment

As you’ve been on the hunt for great deals on houses, you’ve likely heard of short sales, pre-foreclosures, and foreclosures. But what are they? And how can they benefit you?

These types of purchases can be great opportunities for you as a real estate investor or as an agent that is looking to build an investment portfolio. The appeal of buying short sales, pre-foreclosures and foreclosures is that you can secure a property well below market value and wholesale, fix-and-flip or flip to rent the property for a more significant profit.

All three options are appealing to a home buyer that has a DIY streak and doesn’t mind putting in the work. Home buyers can save a bundle and get to style the house to their tastes and lifestyle vs. trying to modify the home to meet their needs.

The confusion sets in because there are more similarities between these categories and it feels like they sort of blend together at times. The big difference between a foreclosure, pre-forclosure and a short sale is that each one is set up based on the homeowner’s situation. Who is selling the home, the terms of the sale, and how it is sold can vary with each.

These differences are what will ultimately determine which is beneficial to you, given your interests and goals for the property. To help you determine which would work best for you, let’s take a look at purchase types.

The similarities and differences between short sales, pre-foreclosures and foreclosures.

Positives/Negatives	Short Sale	Pre-Foreclosure	Foreclosure
Ability to Inspect Property Prior to Purchase	✔	✔	✖
Potential Need to Pay Seller’s Costs & Fees	✔	✔	✖
Property Sold As-Is	✔	✔	✔
Repairs Should Be Expected	✔	✔	✔
Reasonable Time to Close Purchase	✖	✔	✖
Bank/Lender Approval Required	✔	✖	✔

Short Sale:

A short sale is when a lender accepts a payoff that is less than what is owed. This helps an owner who is experiencing financial hardship sell the property.

Those who take this route aren’t always behind on payments or at risk of losing their home. Instead, it is typically a preventative measure taken to avoid foreclosure. [Read more…]

7 Alternatives to Facebook Ads for Real Estate Agents

August 18, 2020 By Jeremy Leave a Comment

Did your Facebook ads for your real estate business get shut off? So did everyone else’s.

Facebook lost a $400 Million lawsuit to HUD, and it resulted in the need to block real estate ads as they may violate the Fair Housing Act.

“According to HUD’s Charge, Facebook enabled advertisers to exclude people whom Facebook classified as parents; non-American-born; non-Christian; interested in accessibility; interested in Hispanic culture; or a wide variety of other interests that closely align with the Fair Housing Act’s protected classes” Explains HUD.Gov.

No matter the case, real estate agents are forced to find alternative means of advertising for business.

Despite Facebook’s former status of the “go-to” platform, there are still plenty of other great options. Below are some of the best places on the internet for you to post your real estate ads.

LinkedIn

LinkedIn lets you target people by jobs, titles, and demographics. You can use this site to reach people that are about to relocate on account of a new career. That may mean helping them sell as they leave the area or finding a home.

Bonus tip – You can also run ads for movers, contractors and others to make an introduction to your real estate business. Now you can cultivate the relationship and build your lead funnel from industry professionals.
Craigslist Marketing

Craigslist is a free classifieds service that can be used to list housing and advertise real estate services. This platform is excellent for reaching people who may not use social media platforms. The ability to search for services and listings in all parts of the country is useful for gaining local clients. It can be especially helpful for linking with those who are considering relocating to your area.
Google Ads

Google Ads is an effective means of targeting potential clients based on their keyword search.

Campaigns can be tailored to capture particular demographics based on home type, location, buying/selling, and even device type. You have the option to create general ad campaigns.

Still, it can be hard to capture audiences as ads from Zillow, Trulia, Redfin, and Realtor are often top search results that are hard to separate from ads posted by organic users. [Read more…]

Real Estate Agent Vs. Broker: Let’s Clear the Confusion

August 11, 2020 By Jeremy Leave a Comment

If you’re new to real estate, you’ve already heard of real estate agents and brokers. You’re probably wondering what the differences are between them and you may have even heard of real estate agents being referred to as brokers. They may sound similar, but they play very different roles.

So is there a difference? Yes, there is, and we’re here to clear the confusion.

What is the difference between a broker and an agent?

An agent is a person responsible for facilitating the real estate transaction. They can work with buyers and sellers but are ultimately responsible for bringing the two together and aiding the sale along.

Real estate brokers can own real estate firms that agents work for. In simple terms, agents work for brokers. Brokers act as the liable party and are responsible for the actions and managing interactions of the real estate agent. They are also responsible for negotiations, arranging, and overseeing the entire transaction.

The real estate agent is whom the buyer and seller interact with. The agent shows homes, introduces buyers and sellers to one another and walks either party through their end of the process. Brokers handle legal contracts and report any requests relative to the transaction to the broker.

What can lead to confusion is when someone who is a licensed broker still works as an agent. [Read more…]

21 Real Estate Closing Gift Ideas & Where to Buy Them

August 6, 2020 By Jeremy Leave a Comment

Selecting the right closing gift can be tricky. The process has to be thoughtful and personalized, but finding the right one can be tedious. That’s where we come in!

Below you will find 21 unique ideas for closing gifts that not only incorporate something unique about the buyer, but something that is memorable. Each gift also has a long-life span so that as they are ready to buy a new home, or someone asks who they would recommend, you are still in front of them.

Let’s face it, the last thing you want to be is forgettable. This will help your clients spread a positive vibe about you, helping to grow your reputation and ultimately your business.

Once you find the perfect option below, customize it around their preferences including words, slang and other things that make sure they know you put time, effort and a lot of thought into the gift.

Lone Star Etched Laser Etched Hammer
Handymen and women love their tools. A full-size hammer with a personalized message to the buyers is a beautiful way to say thank you. It may not be used practically but will find a special place in their workshop. This is simple but will surely leave a lasting impression.
Local Woodworker’s Club Membership
Woodworkers love to share with and learn from a like-minded community. Relocating to a new town means disconnecting from their community, and a membership to a local woodworker’s club is an affordable way to help movers connect with local woodworkers.
Black and Decker Drill and Home Tool Kit
A young couple buying their first home may be interested in performing their own repairs. They may also not have the money to spring on many tools. While tools may be expensive, the basics don’t need to be. This kit includes everything one will need to perform small jobs and will surely leave a lasting impression.
Naked Wood Works-Personalized Cutting Board
A personalized cutting board is an excellent choice for those who love to cook. This board is offered in maple or walnut and can be engraved with the purchase date and names of the new homeowners. Additionally, real estate agents have the option to have their business info engraved on the back for future reference.
Memory Weaver Studio Glass Cutting Board with Custom House Portrait
As an alternative to a wooden cutting board, you can opt for this beautiful piece of art. This features a digitally rendered water painting of the buyer’s home with their family name and date of purchase. While this may be used as décor, it can be used practically as a cutting board without the risk of damaging the portrait. Whether it’s used as a display or for preparing food, it’s sure to make an impact.
Instant Pot 6-in-1 Pressure Cooker
Pressure cooking is growing in popularity, and you may hear your client speaking about their interest in one for their kitchen. The Instant Pot line is trendy right now on account of its versatility. It can be used to prepare many meals, and gifting one to your clients will surely help them remember you. Best of all, it is very affordable.
Local Cooking Lessons
Cooking lessons are a great way to get clients connected with their community and learn about the local cuisine. Cooking classes let your clients meet new people, provide them with a new recipe to enjoy in their new home and are also just fun. Each time your client cooks their new favorite dish, they’ll remember you’re the one who bought them the class and that keeps you in the backs of their minds.
Personalized Cheese Boards
A cheese board is something very few people have but always delights the recipient. If your client mentioned they’re a fan of cheeses, charcuterie and wine, this is an excellent gift idea.
Stone Fly Studio Engraved Fly Box
Outdoorsman moving to a new area will be hard-pressed to find new fishing spots. StoneFly offers fly boxes that feature a map of a river engraved on the exterior. They have a range of boxes, each with a different river featured on it, meaning you may be able to find one of a river in their town or nearby. An optional feature is to personalized message engraved on the rear of this box. Even if it’s kept as a decorative piece, it’s something every fisher will love.
Local Hobby/Club Memberships
An alternative gift for an outdoorsman is to set them up with a membership with a local hobby club. It could be anything from photography to knitting, books or whatever the person is into. If your client is brand new to the area, this is a great way to help them meet their new group of friends and leave a positive lasting impression of your services.
Personalized Compasses
Fisherman, hunters, hikers, mountain bikers, or any other outdoorsy person who spends time exploring will benefit from a compass. Look for a model that can be engraved with a personal message to your client, congratulating them on their home and wishing them well on their adventures.
Personalized Shadow Boxes
For clients who like to travel, a shadow box is an excellent gift idea. This allows them to place small items they’ve collected on their journeys in one enclosure. Try to remember something they mentioned or a specific word they used to describe a trip while you were helping them shop. Then engrave that onto the box for that added personal touch.
Red Robot Engraving Personalized Realtor Gift Pack
If your client loves preparing elegant meals and enjoying complimentary wine, there’s no better gift. This kit includes a wine box with tools, a cutting board, vegan leather key chain, and two stainless steel stemless wine glasses. All that is included in this pack can feature custom engravings. All that’s left is to pair it with the wine of choice.
Personality Gift Shop Personalized Monogram Whiskey Decanter Set
You can always purchase a whiskey drinker a bottle of their preferred brand, but once the bottle is gone, it’s gone. That’s why a classy decanter can be ordered with a custom monogram that features your client’s name and if you also want have the date their home officially became theirs engraved too.Now the decanter has extra meaning, and if you fill it with a special whiskey they can enjoy a toast each anniversary of their home purchase. And don’t forget matching monogrammed glasses if you really want to leave a lasting impression.
Personalized Humidors
If your client is a cigar aficionado, or simply enjoys an occasional smoke with a brandy, it is doubtful they’d complain about getting a quality humidor. Have the inside engraved with a custom message that will trigger their memory of you helping them. Now each time they go to relax they’ll remember who to thank.
Succulent Bar Store Ultimate House Warming Succulent Gift Box
Succulents are a favored houseplant by many. They don’t need much care and will live for years and years. You can buy subscriptions to succulents of the month clubs as a fun gift, or a completed terrarium kit with a stunning landscape that works to bring life to their home. These unique gifts double as conversation pieces to help get you in front of their friends and get your name out as a bonus!
Family Initial Garden Stones
What better way to solidify their new home than by handing them the keys and having your clients look to see a family initial garden stone to welcome them. This is a heart warming and thoughtful gift that will certainly last the test of time and show you appreciate them choosing you as their real estate agent.
Outdoor Fire Pits
While a fire pit isn’t for every client, you’ll know the ones they mean a lot to. This gift helps make the home a more relaxing and enjoyable space. It allows them to settle into their yard and may even help inspire social activities, which will help them connect with the neighborhood.
Engraved Personalized Planter Box
Clients with a green thumb may have been forced to leave their plants behind during their big move. Buying a plant may be a bad idea, but a planter is a great one. Your client will not only be starting their new lives in their new home, but this will help “give the house life” and “sprout” a new lifestyle. A personalized engraving gives it a personal touch they will remember you by.
Yard Games or a Cornhole Set
Yard games are the perfect way to get clients to take advantage of their new back yard. While many are tailored just for kids, Cornhole is a great game the entire family can play. This particular set is very affordable. It’s also a simple game that allows for bonding with the kids, friends, or neighbors. A big plus is its popularity that ensures it will be a big hit at their house warming party.
Personalized Kids Books
Clients with young kids may have a hard time getting them to settle into their new home; never mind getting them to focus on learning. Personalized children’s books provide kids with an escape and can be an incredibly useful tool for teaching. Best of all, the parents will appreciate your thoughtfulness and efforts to help them and their children!

Do you have a real estate closing gift that works great with your clients. Feel free to share it in the comments below.

The Fourplex – A Real Estate Investors Solution to Tricky Houses

July 30, 2020 By Jeremy Leave a Comment

Are you struggling with a property you want to flip, but the market isn’t quite right to fix and sell it? Or maybe you have an older building where the architect designed a “unique interior” and layout. Instead of struggling on how to fix it up, or which walls to knock out, go with a fourplex!

By definition, a fourplex is a property that contains four separate living spaces. It can be a house, an apartment building or any type of structure as long as there are four unique quarters where people can live separately.

Fourplexes provide tenants with affordable and desirable living spaces, and landlords a creative way to make more money off of a single rental property.

They’re attractive to young couples and singles because these types of renters can live in a home with a yard for less money than buying their own houses, not to mention they can live in a house without roommates. But the benefits mostly lie with the real estate investor.

Flexibility is one of the key benefits of a fourplex for a real estate investor. Specifically when it comes to leases and pricing.

You can list some units as short term and others as long term. The short term units are attractive for corporate housing, military and study abroad students. Long term leases are perfect for professionals, young couples and singles that aren’t ready to buy. Because it is four separate units, you don’t have to worry about renting the entire home to have money coming in. You can have a steady cash flow from the long term rental agreements and large bursts of revenue from the short term leases.

If you are a real estate investor and do not have a large staff, fourplexes have another advantage for you. Upkeep on a fourplex is less time consuming because there is less travel in between properties. You can also complete all inspections in one swoop instead of multiple days at multiple properties. Not to mention the peace of mind with not having to worry about one roof, HVAC system, plumbing, lawns, etc. instead of multiple buildings.

You can also get creative with pricing and make more money with a fourplex than you can when renting the entire home to a single tenant.

For example, the rental price for a single family home in your market could be $1,300 per month. The cost per single bedroom apartment could be $450 and a studio $300. By having the same house as a fourplex you now have the ability to charge $1,650 per month if you charge market rate for each.

If there is parking, you can also charge per space vs. including parking spots it if the building was a standard home rental. By adding the parking spaces in as separate rentals, you could be earning $1,800 per month if you charged $75 per space when compared to the market rate of $1,300 for a single tenant home rental.

Now remember, not all units in the building will be as desirable. Not everyone will be happy walking up one or two flights of stairs. Basements don’t always have as many windows making them not as appealing for a renter. By knowing this you can get creative.

In the same market prices mention above, why not charge $300 for the basement, $400 for the second floor unit and $550 per month for the two more desirable rental units. [Read more…]

What is Wholesale Real Estate?

July 22, 2020 By Jeremy Leave a Comment

What is Wholesale Real Estate

Wholesale real estate is when a real estate investor enters a contract with a seller and then assigns the contract to a buyer at a higher price. The investor is then able to keep the difference as profit.

Wholesaling real estate can only occur when property is being sold under its market value. This is typically the case with foreclosures, but not always.

The key is to find a seller that is motivated to sell their property quickly. The main causes of a property going into foreclosure are normally financial hardships or excessive repairs the owner is not willing to deal with anymore. Once the property ends up in foreclosure, the price drops substantially making it incredibly appealing for a wholesaler that knows the specific market and also knows that they can turn a quick profit.

It is important to know that real estate investors may also work as a wholesaler and tend to find these opportunities through advertisements, contractors, and networking.

Once they find a desirable property, they make contact with the motivated seller and enter into a contract as the buyer. If they can get the property before it is foreclosed on they can guarantee it is in their hands and the home owner gets to leave with money in their pocket so it is a much better situation than a bidding war and the home owner leaving with nothing.

When the wholesaler cuts the deal with the seller, the next step is to line up an investor or DIYer that doesn’t mind some extra work. Unlike a traditional fix and flip or sale, the wholesaler’s goal is to never actual have to take the title and purchase the property. Their goal is to get a new buyer to purchase the property quickly and ideally before the contract closes.

When the deal closes, the initial investor (the real estate wholesler) collects the difference between the agreed prices as profit. Other times they may sit on the property and take it as a net loss for their taxes because they know the property value is going to increase.

One major difference between being a real estate wholesaler and an investor is that a wholesaler rarely actually sells the home. Instead, they are trying to sell the rights to purchase the property and broker a deal. [Read more…]