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Author Archives: Dick Patterson

About Dick Patterson

Dick is a Home Ownership Counselor/Coach at HOMEteam. He helps prospective homeowners with education and guidance to successfully acquire their first home. Dick came to HOMEteam after four years as a mortgage lender and financial services representative at a local bank. Dick has also worked in fundraising for two non-profits, business-to-business sales of advertising, events, and signage, and real estate appraising. He also served on a non-profit board, his church’s pastoral council, and his town’s planning board. He also holds a Masters degree in International Community Economic Development from Southern NH University. Dick is excited to leverage his diverse experience to benefit HOMEteam’s clients.

Ready to be a landlord?

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Most of HOMEteam’s clients are seeking to buy their first home – and most of the time it is a single-family home. Single-family homes and neighborhoods are ideal settings to achieve housing, economic, and community stability for putting down roots, raising families, retiring, and aging in place.

But for some, having enough income to qualify for an adequate mortgage to buy a single-family home is a challenge. This is where adding rental income from one, two, or three units to qualify for a mortgage can make all the difference between being able to BUY or remaining a RENTER.  Furthermore, it is even possible to cover the expense of owning (including building maintenance reserves) and live in your own unit COST FREE!

Being a landlord has its rewards; but it comes with responsibilities and risks. Successful landlords – whether large or small – buy, manage, and sell their properties AS A BUSINESS.  Being proactive to identify risks, mitigate them with appropriate management tools, and have a game plan to achieve a target investment return is what pays off handsomely in the long term.  As a business, you must cultivate reliable partners for success: lawyer, accountant, maintenance trades, and tenant vetting resources. This includes becoming known in the community and local government agencies as a responsible and fair landlord.  When you have good partners, systems, reputation, and knowledge of what federal, state, and local laws require of you and your tenants, being a successful landlord will come naturally.

Buying a 2-4 unit property as your first home just might be your ticket to homeownership and lifelong wealth generation to live comfortably, provide for your kids’ education, and enjoy a fulfilling retirement!

In addition to offering Homebuyer education and counseling, HOMEteam provides a Landlord Responsibilities Seminar; where experts present on: Fair Housing Laws, Landlord and Tenant Laws, Lead Paint Laws and Remediation, Pros and Cons of 2-4 Unit Investing, Vetting Your Tenants, Financing and Insuring 2-4 Unit Property.

The next session is on January 18th at our 801 Elm Street (2nd Floor) Manchester office.  The $39 per household (1-2 people) fee includes AM snacks, pizza lunch, handouts, and priceless knowledge. And readers of this blog post get a Holiday discount of $14 by using the code 4rent2020 when registering at https://www.hometeamnh.org/landlord-training-seminars/ to attend.

May all of you share a wonderful Holiday Season of cheer with family and friends.

Millennial Homebuyers Remorse?

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As a Housing Counselor, I work every day to educate and coach clients who are looking to buy their first home. They come to me eagerly hoping to claim their piece of the American Dream of homeownership. My goal is to discover where they financially are today – strengths and weaknesses – then identify what needs to be done to get them “mortgage ready” to seek a pre-approval from a lender. Armed with that pre-approval (and knowledge about the process and players of home buying), they can hire a buyer’s agent, start house-hunting, make an offer and, if the offer is accepted, then see the process through to closing. For some, the journey to “mortgage ready” is fast. For others, it takes a couple of years to establish or fix credit and get finances in order. For most, it takes 6 – 12 months. Everyone gets downright giddy with excitement and joy at the closing table when receiving the keys to their new home. So imagine my surprise driving along listening to the news on the radio recently when I heard a headline stating that “63% of millennials say they have regrets about purchasing their home. Details to follow…” SIXTY-THREE PERCENT!!?? That COULDN’T be right. Of course, I arrived at my destination and exited the car before any details followed. So when I returned to the office, I searched the internet for the complete story. Here’s what I found… The data source was a poll by Bankrate.com of about 1,500 millennial homeowners. And the top reason for regret was: Underestimating the “hidden” costs of buying and owning a home, including on-going responsibilities of maintaining it. It turns out first-time buyers often overlook the costs of upkeep and repairs!! Wow! I guess I was flabbergasted because my co-workers and I always discuss post-purchase upkeep during our pre-purchase seminars and 1-on-1 coaching. Apparently, that topic frequently does not enter the minds of people who do not participate in homebuyer seminars and coaching!! “We’re not renters any more Toto! There’s no landlord to call when stuff hits the fan.” That’s a big “con” of homeownership to consider when focusing on the “pros.” That is also why cultivating a habit of “saving” BEFORE buying a home is so very crucial. There are some great mortgage programs that allow for little or no down payment requirement along with little to no reserves. Sadly, with zero savings in reserve and no habit to save, buyers are setting themselves up for potential foreclosure if they lose a job, get sick, or something big breaks down. Remember the “foreclosure crisis” of a few years ago? “What goes up WILL come down” is a fact about real estate that history has proven right time after time. Below are spreadsheets estimating how much needs to be saved monthly to replace items at the end of their useful lives. The first one is based on a NEW home ($255, monthly) and the second one is based on a 5-year old home ($360, monthly). Those numbers quickly rise when the home is even older and/or the inflation rate is higher. Sure, you can pay for them on credit cards, but wouldn’t it be nice to avoid high-interest costs by having the money already saved? So, don’t catch “millennial buyer’s remorse.” Instead, get infected with the “habit of saving” to prepare for buying and MAINTAINING your new home. Best wishes for success… Dick Patterson

                                                                       New House

                                                                    5 Yr Old House