How Much is Your Time Worth? Here’s How to Calculate it (& Up Your Value!)

calcluate-your-time

More than anything else, your time is valuable. So how do you know if tasks are worthy of your most precious asset? Find out how to calculate it here!

View the full article: How Much is Your Time Worth? Here’s How to Calculate it (& Up Your Value!) on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

How to Continually Improve as a Landlord by Using a Move-Out Survey [With Sample!]

tenant-move-out-survey

The more we can improve our business, the more efficient we become, the happier our tenants will be, and the more cash flow we can potentially produce.

View the full article: How to Continually Improve as a Landlord by Using a Move-Out Survey [With Sample!] on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

Case Study: My BRRRR Deal That Went Sideways (& What I Learned From It)

brrrr-flop

As they say, a wise man learns from his mistakes, but a wiser man learns from the mistakes of others. So, be the wiser and learn from mine.

View the full article: Case Study: My BRRRR Deal That Went Sideways (& What I Learned From It) on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

5 Simple Steps to Thoroughly Screen Prospective Contractors

screen-contractors

To be blunt, most contractors are terrible for your landlording business. For this reason, you need to screen them just as carefully as you might a tenant.

View the full article: 5 Simple Steps to Thoroughly Screen Prospective Contractors on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

Largest Source of Mortgage Funds in U.S. Tries to Help Homebuyers Struggling With Student Debt

Fannie Mae has come to recognize the problem people are facing when they’d like to buy a house but they’re hemmed in by tens of thousands of dollars of student loan debt. First, in calculating loan applicant’s debt-to-income ratio, the company is no longer factoring in debt that’s being paid by someone else. That means, for home buyers whose parents are making payments on their student debt, those payments won’t count against their DTI calculation. Other debt payments are also being taken out of the calculation if someone else is making the payments. So, if loan applicants are getting their car payments taken care of by someone else, those payments are taken out of their DTI calculation, too.

VRE 69 stillSecond, if borrowers are making student loan payments that are smaller than what their original repayment agreement calls for, those smaller payments are factored into DTI calculation rather than the original payment amount. That means if the borrower is paying $100 a month rather than the original $500 a month that the repayment agreement called for, only the $100 a month is factored into DTI. Why might  borrowers be paying less than the original amount? Because a number of public entities have created programs to help people who are faced with making student loan payments but aren’t making much money. They idea is, once they start making more money, they can start paying their original payment amount. Prior to this change, Fannie recognized only the original payment terms when calculating DTI.

Third, existing homeowners can get improved repayment terms on cash-out refinancing if the loan is for paying down student debt. This change is really for parents who want to help their kids retire their debt or for people who already own a home and want to get rid of their student debt.

All three of the changes are already in effect, so if you have homebuyers who tried to get a home mortgage loan a few months ago and couldn’t because their DTI was too high, there’s a real chance they can reapply and get different results. That’s something to let your customers know about.

But there is more change coming, too. At the end of July, Fannie Mae’s maximum allowable DTI will rise to 50 percent from 45 percent. Once that change takes effect, loan applicants who have really struggled to meet DTI requirements now have an even better chance of  getting a loan approved.

The changes are detailed in the latest Voice for Real Estate news video from NAR. Also covered: Efforts by NAR and the federal government to increase the national homeownership rate, which has been stuck at a 50-year low since the downturn, and the increasing interest among foreign investors in smaller commercial properties in markets outside the big metro areas.

Access and share the video.