Nashville Investment Property

Nashville Investment Property

  Nashville is the “It” city. It has been ranked the #1 housing market in the nation. Depending on the day, we hear that 80-100 people move to Nashville every day. We were named the #1 Minor League Baseball city. We are in the Top 20 cities for tech jobs, #6 for young professionals and #7 for millennials. We are among the Top 10 cities in which to launch a career and Nashville has the third fastest growing large Metro economy. The list goes on and on. But, with all these accolades, does that mean that Nashville is a great place to buy investment property? Yes and no. With Nashville’s influx of residents, we have also had low inventory. Because a lot of those are millennials and young professionals, the demand for properties under $200,000 has increased significantly. Typically, this is where investors like to buy. They can get in a property for a decent price, rent it out for an attractive price, and still get a nice return on their investment every month. We were getting multiple calls a week for a while from people all across the country that wanted to invest in Nashville. Most used the word that investors dream about, “deal.” “I want to get a deal.” “I’m looking for a deal.” “Where can I find a deal?” and “If you find a deal, I’ll buy it.” Well, the truth of the matter is, there really aren’t many, if any, “deals” in Nashville right now. First time home buyers, young professionals, millennials and investors are all competing over the same property. Investors that have cash may be more attractive to sellers, however, cash is not always king and not all investors have cash. Some sellers don’t want to sell to an investor and will take an offer from an owner-occupant over an investor because they either want to help the “little man” or they don’t like the thought of renters living in the home they have loved for years. Another pitfall of investors is thinking that cash is king – no matter the offer. Sellers won’t necessarily take thousands less for their home just to have it close in two weeks. Some would rather wait another 2- 3 weeks and make more in the long run. If you plan on investing but you are getting a loan, you are in the same boat, for the most part, that owner-occupants are in and you will find the Nashville market a tough one to compete in. The best thing to do is to find the properties before they go on the market or at very least, the same day. Find a Realtor that diligently hunts for properties...

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What is a real estate closing?

What is a real estate closing?

  Ok, you have signed the Purchase & Sale Agreement, all contingencies are satisfied and now it’s time for closing. But what is a real estate closing? Well, your real estate market may do it differently, but I will give you an idea of how most closings happen in the Greater Nashville area. A title company gets all the contract documents from the two parties. If you are using a Realtor, they will handle this for you. The title company works behind the scenes to handle all of the legal work, but, in a nutshell, they make sure all the liens are paid off and that the contract is followed as it is written. In our area, it is very common for the Buyer and Seller to have different title companies and they perform their “closing” at different offices, at different times. A lot of clients will ask me if the buyer or seller will be in the same room. Most of the time, the parties never even meet. The Buyer is entitled to do a final walk-through of the property before closing. This is done to check for any repairs that were to be done and to make sure there has been no damage to the property. Basically, the house needs to be in as good or better shape than when the contract was signed. Typically, the final walk-through is done 1-2 days prior to closing. In a perfect world, the Seller would have everything out of the property so the Buyer can see everything. The world is not always perfect, however. A lot of times, the Seller will still be packing up to move when the Buyer walks through. This can cause stress for both the Seller and the Buyer. The Seller feels the pressure of getting everything out of the house and the Buyer feels anxiety about the Seller having everything out of the house and it being ready for them to move in. Unfortunately, I have had one too many experiences where the moving out doesn’t go quite as planned. I say this as a caution, because if at all possible, it is always best to have everything out of the house the day before closing. Moves almost always take longer than anticipated. The movers were supposed to send four men and two trucks and someone doesn’t show up for work and a truck breaks down. Yep, this stuff happens. I have seen people moving out until midnight, people having to get hotel rooms at the last minute, pay for extra storage days, have to do repairs at the 11th hour, and experienced the myriad of emotions that go along with all of those issues. The actual closing...

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A Dating Real Estate Lesson

A Dating Real Estate Lesson

I had a crush on this boy for several years in high school. He was in my youth group at church and he was a couple of years older than me (I really hope he isn’t reading this right now.) Anyway, he was the end-all be-all. I thought he hung the moon. I thought, “If I could just date him, everything would be great.” But I had a problem. I was a nerd – and he was totally popular. He was nice to me because he was a church kid. His parents taught him well and we all hung out and everyone had a good time but I was definitely not dating material in his eyes. So the years passed and my “love” for him stayed true. The day we had a party for the graduating Seniors and he left for college was a dark day. I lost my chance. I would never see him again, or so I thought. He came home for holidays and breaks and he would come to church with his parents. Now he was a college boy and that made it even worse! Much to my surprise, he came home for the summer and, well, I had grown out of my “nerdiness” I guess. Either that or he lost a bet. Nonetheless, he asked me out – on a DATE! I was speechless. I mean, this guy that I had been drooling over year after year, actually wants to take me on a date. I wondered if he realized he’d have to be seen with me in public and if he knew that I would call all my friends immediately and give them every detail. So that I don’t keep you in suspense any longer, I said, “yes” and we made a plan. Honestly, I don’t remember much about the date. I just remember being really bored and really disappointed (again, I hope he’s not reading this). I had spent so much energy dreaming of what it would be like to go on a date with him and then I was completely let down. So, there is a reason I tell you this story other than for entertainment and chuckling at my “nerdiness.” I have run across people that have had their eye on a particular house or a certain neighborhood for years. They think that once they live THERE, everything will be great. I have had others who think that once they get that bigger house, everything will fall into place. They have to keep up with the Jones’, have the perfect house in the perfect neighborhood, the perfect car to put in the garage and the perfect furniture inside. What they don’t...

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No Pain, No Gain

No Pain, No Gain

  No pain, no gain. I thought this as I hobbled out of my workout studio today after a particularly grueling class. We hear this term a lot when talking about getting in shape. But what about when we are selling a house? I know many of my clients have thought about the pain long before they understood the gain. I have had many Seller clients practically do mini-makeovers on their house just to sell it, and guess what? It works. Is it a pain? Yes. Would they say it is worth it? Absolutely. If you are a Seller. Don’t skimp. If you have bold color on the walls, paint it neutral. If your carpet has been “loved” by pets or children, replace it. Don’t think that in today’s market, Buyers are OK with a “credit” or “allowance”. First of all, lenders rarely allow this any longer and Buyers that are paying top dollar in a hot market want the house to be move-in ready. You will find the one that has to have the school system or the pool, or the one unique quality that only your house possesses but you need to be attractive to the masses. It’s true that it only takes one Buyer for your house but in a hot, Seller’s market, you want to put your best foot forward to get multiple offers. Why have one Buyer wanting your house when you can have five? You may need to become a weekend warrior, hire a handyman, or sucker your friends into helping for some pizza and beer. Just get it done. Mulch the beds and plant a few flowers. Paint the front door and clean the windows. Rearrange furniture and drop-off to Goodwill. De-clutter and clean. Think of it this way, you’ll get some exercise, feel a bit more invested in the process and you will appreciate it all the more when that Buyer walks through the door and says, “I’ll take it!” No pain, no gain isn’t just for working out...

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Are Open Houses Worth Having?

Are Open Houses Worth Having?

  The age-old question of real estate, “Are Open Houses worth having?” Well, it depends on who you ask. There is the real estate agent perspective and the Seller perspective. Both say, “yes” and both say, “no.” Here’s why. Real estate agents who say, “YES”: Know the property is in a high-traffic location and could produce a Buyer. However, not necessarily a Buyer for this property. Some real estate agents use open houses to pick up new Buyer leads for their business. When marketed well, a real estate agent can produce many leads from one open house. Want to make sure they are doing everything their client feels is necessary to sell the house even if they know it’s unlikely they will get attendees or find the Buyer from an open house. May just want to catch up on their reading or paperwork for a couple of hours while they wait for visitors.   Sellers who say, “YES”: Just assume you must do an open house as part of the marketing plan. Feel that their property has the potential to get a lot of traffic and think they may get an interested prospect walk through. Want their real estate agent to do as much as possible to sell their house and feel that an open house is a good way to do that.   Real estate agents that say, “No”: Feel that the property is not in a high traffic area and they won’t get many, if any, prospects, except for, perhaps, “nosey neighbors.” Are concerned to hold an open house due to liability of the Seller’s personal belongings or due to personal safety.   Sellers who say, “No”: Don’t want random strangers walking through their home without ample supervision. Feel their agent does outstanding marketing outside of open houses and feel that their house would not be a good candidate for selling during an open house. Some Sellers of unique or high-end properties feel that their property is best marketed via word of mouth, print, and online and then having the prospective Buyer set up a private showing.   As you can see, there are good reasons to do open houses and then there are good reasons not to do open houses. It really depends on the Seller and the Real Estate Agent and making sure they are on the same page in their ideas and opinions of...

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A Change Would Do You Good

A Change Would Do You Good

  One of my all-time favorite music artists is Sheryl Crow. She sings a song called, “A Change Would do You Good.” If a change would do us good, why do most people resist it? I think it’s one word. FEAR. Fear of the unknown, fear of failure, fear of others’ opinions, we don’t believe in ourselves, it’s hard, it causes stress, the transition can take a lot of time, we may disappoint someone, etc. I understand and have experienced all of these. Fear itself is not always a bad thing. It can actually motivate us as well as help keep those of us that tend to have the urge to jump before looking, in check. I embrace change, now, but I didn’t always. I moved to a new school in Arizona in the 4th grade. Before that, I was painfully shy (I know, those of you who know me can’t believe that). When I was really young, I would literally cry if people I didn’t know talked to me. It took me a long time to warm up to people and it was really hard for me to make friends. So, as I recall, as my mom sent me off to the bus stop for my first day at the new school, she said, “You’d better talk to someone today or you won’t have a single friend your whole life.” Now, maybe that sounds a bit dramatic, and maybe that’s not exactly what she said, but that’s what I heard and it definitely made an impact on me! My mom recalls me running home from the bus stop saying, “Mom, mom, I made a friend!!” I was scared but it was fear that also motivated me. And, because of the beauty of Facebook, that friend (Glinda Grayam) and I are still connected today. Now, if you know me, you know that I am far from shy. That change was a huge turning point in my life. There are so many things that I wouldn’t have done or become if I was still shy. Recently, last week, in fact, I made another change. I became the Principal Broker of United Real Estate Music City. My entire team is moving with me. We will still be The Michelle Froedge Team that our clients love. I just have another role in addition to Lead Agent. It was a big decision and there was definitely fear involved. But, apparently, I like the adrenaline, and the challenge. I challenge you to do something that scares you. Make that change that you’ve been putting off. You won’t grow if you don’t make a move. Do it. A change would do you...

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