While this is of course unfortunate news for renters it’s great news for landlords and anyone considering stepping into the landlord field. If you are one of the many people looking to rent a property this year it might be a good idea to consider working out a term that could hold your rent at a negotiated lower price for an extended period. By negotiating a multi-year lease many landlords are willing to keep the rent slightly lower and it also avoids the rent be raised on a year to year basis or at least you will know ahead of time what the increase will be. This is of course only a good option if you know you will be staying in the same area for several years.

On the other hand if you are in the situation where you could purchase instead of renting now might be the time to speak to a Realtor® about your options for purchasing a property of your own. Pricing for housing is down and mortgage rates are hanging around an extremely low 4.5%. Whether you purchase a single family dwelling or look into a rental building of your own you have many options.

While you might not actually need a school now, it’s definitely important to look down the road.  Could children be on the way?  Do you want to have to put your house on the market when they turn two to move into a new neighborhood?  These are definite considerations when looking to purchase your new home.  So as you start to check out neighborhoods be sure to see what the schools have to offer.

There will definitely be plenty to do.  You can kick back and catch a free kids movie at the Davis theater (4614 N. Lincoln) at 10:00 a.m.

Your kids will enjoy some craft time while decorating a face mask in Gidding’s Plaza and follow it up by getting their own face painted.  There will also be music, dancing, crafts and other entertainment in Gidding’s Plaza throughout the day.

For the kid that likes to play dress up, stop by Pickles Playroom (2315 W. Lawrence) and they can get glamour hair with glitter, colors and funky styles ($5.00).   And before wrapping things up for the day be sure to stop by Cafe Selmarie (4729 N. Lincoln) where your kid can get a delicious, free sugar cookie.

So load up the kids and go explore a new neighborhood or head out your door to the familiar surroundings of Lincoln Square this weekend.  Whether your meeting up with friends or looking to make some new ones, this will definitely be an event worth attending.

For a schedule of activities click HERE.

All information was obtained from the Lincoln Square Chamber of commerce and should be verified.

A home purchase isn’t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. Here are five tips for avoiding mistakes that cause a home sale to crater.

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

2. Hold off on big purchases

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.

Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

As we enter into the rainy months of April and May it is important to make sure that your house will stay dry and free from moisture issues.

Take a few minutes and walk around the foundation of your house, make sure that there are no new cracks or that existing cracks in the foundation are not spreading.  If you notice any changes you should have them examined and if needed repaired by a qualified person or company.  While most minor cracks in the foundation do not lead to structural problems, they can certainly lead to potential water intrusion.  While you are walking around the house, take a look at the landscaping.  Make sure that all landscaping is graded to drain water away from your foundation.  Water should not drain towards the house our pool at the base.  While you are still down low, check any drains around the house or in basement stairwells to make sure they are clear of debris and able to drain.  Also, check the downspouts to see that they drain away from the foundation and are not clogged with debris left over from winter.

Work your way up the side of your house and examine the siding for gaps or areas that are not properly sealed.  Next check around the exterior of al the windows to make sure that they are properly caulked, a couple of dollars and a tube of caulk can save you time and money in the long run.

Lastly look up at that roof.  Does it appear to be in good condition?  Did the winter weather damage or remove any of your shingles?  If so now would be a good time to have a roofing contractor come and take a look to see what needs to be done.  While we are on the subject of roofs, spring is also a good time to re-assess the gutters and downspouts to make sure that they are clog free and flowing properly.

Eliminate negatives from your vocabulary.  Replace the word can’t with the word won’t.  This gives you power over the situation and helps bring on the realization that so many of the things we say we can’t do are really things we won’t do.  So the next time the word can’t enters into your mind decide is it really something you can’t do or just something you won’t do.

Bring unfinished business to the table and clear it out for the year.  Are there things that you can finish up, if so take some time this week and clear those off your schedule.  If you don’t have the time to take care of them yourself, consider hiring them out to be finished.  Lastly, see if they are really that important.  If it is something that you really don’t have to do you should consider taking it off your plate all together.  Whatever it takes just be done with it.  This will help enable you to move on and concentrate on the important and productive tasks at hand, which might just include fertilizing the lawn or checking the caulk around your windows..

There are a number of items that need to be considered when purchasing an investment property, one of these is the CAP rate.  CAP or Capitalization rate is determined by taking the NOI or net operating income and dividing it by the value of the property this could be the price to be paid for the property or if you keep up with your investments it is the value of the property at the time you are determining the rate.  ex.  CAP rate=NOI/Value.

The CAP rate can be used to determine the value of a property in comparison to other rental properties in the area.  It can also be used to determine how long it will take for an investment to pay for itself.  ex. If a building has a cap rate of 10% it will take 10 years for it to reach 100%.

This is just one of the many items that should be considered when looking into investment properties, and just a basic description of how it works.  It is always best to contact a licensed Realtor (R) who is familiar with the type of property you are considering to assist you with your purchase.

The question of the day is…Why?  If you have the resources why wouldn’t you buy now.  I would really love to hear any answers to this question.

• Housing values are down and being held down by an excess inventory of foreclosed and bank owned homes.
• Mortgage rates are at historic lows and won’t stay there forever.
• There is a great selection of homes in just about any area you might be interested in.
• There are apartment buildings for sale that could almost immediately produce positive cash flow.

So, if you are still sitting on the fence staring at the rolling hills of lush green pastures, why aren’t you jumping in?

Renting to own is a concept that could be considered to help two parties reach their goals.  It is a concept that many people might not understand and many people might not consider.  So, I will take a few minutes here and explain the basics of renting to own and hopefully show why you might want to consider this creative alternative to letting your home sit on the market.

What is renting to own?  Renting to own is an agreement reached where the home owner will rent their property to an interested party with the option to buy the home for a predetermined amount at the end of the lease.  There are a number of options that can be negotiated into a rent to own lease, below I will list several of them.

1. The lease term, this could be a standard 1 year lease or and extended lease for several years depending on the situation.
2. Initial earnest money or money down.  This is money that the renter/potential buyer will put down to show they are serious about the potential purchase.  This money will be applied towards the down payment should they buy but if they walk away the money generally goes to the home owner.
3. Purchase price for the home.  This could be a set price or a price that fluctuates with market conditions or percentages.
4. Will any of the money being paid towards rent be used towards the purchase of the home.  If a down payment could be a potential problem for the renter, part of the monthly payment could be set aside and used towards the down payment if the renter goes through with the option to buy.
5. The option for the owner or the renter to pay for insurance, utilities or other home related expenses can be negotiated.

These are just 5 of the potential negotiation items for renting to own.  There are of course numerous other items that can be added in as either party wants.  But, now you should have a general idea of how a rent to own situation works and hopefully see how it could potentially benefit you.  Of course you should always contact a licensed Realtor® to thoroughly discuss all your options.