So, you're looking at moving and you're not sure if renting or owning a local Orange County California home is right for you?
You're not sure if one is a better financial decision than the other?
You're not sure if you'll be able to find the type of house or apartment you'd like to live in?
You're not sure what you can handle financially?
Well this article will dive into ways you can learn how to know if renting or owning a home is right for you in the Orange County area.
Throughout the 1950’s-1990’s, home ownership was a major goal of most families across America. Owning a home was the "American Dream" and if you didn't own your house there was almost this stigma that went with that.
But, that rule has changed in recent years. The economic downturn paired with the bursting of the housing bubble makes renting an attractive option for many Americans... maybe even you.
In the past, the choice to rent or own here in Orange County was about whether you’d prefer to live in a house or an apartment. Now, there are opportunities to purchase apartments / condos and rent homes, so there are options for renters or perspective owners to live in whatever type of property that they’d prefer.
Renting is great for people who want flexibility. Perhaps you’re just starting your career, and you’d like to be able to relocate quickly. Renting is a wonderful option for people who like to “try out” various neighborhoods in their city before finding a place to settle down.
Owning a home ties you to one location for a good period of time. It would destroy your credit to step away from your mortgage, and selling your home is a long, arduous process that could end in you losing some of your initial investment.
In many cases, contrary to popular opinion, it can be more cost-effective to rent than own, especially in situations where the local housing market isn't going up in value very much each year. While renters pay a fixed amount each month, homeowners are required to pay additional fees, such as homeowners insurance, maintenance, repairs, HOA (local community association fees), amongst others.
It’s not always best to rent, however. Owning a home is still the American dream. You have the right to paint, decorate, and reconfigure your house however you’d like, without the worry of risking your security deposit or upsetting your landlord. It's the ultimate in freedom when it comes to your house.
Homeownership as an investment. While the housing market has rebounded here locally in Orange County California... the home values aren't increasing like they were during the build up of the housing bubble (which is a great thing actually)... but another benefit of home ownership is homeowners typically enjoy the potential appreciation of the value of their home.
From 1968-2004, home values grew by approximately 6.4% annually, outpacing inflation (as well as many stocks & other financial instruments).
As a homeowner with a fixed rate mortgage, you enjoy the benefit of inflation protection. For example, if your mortgage payment is $500 each month, you’ll pay that for the duration of your loan. However, the purchasing power of $500 can change significantly over the course of 15, 20, or 30 years. As most people’s income grows over time, a fixed- rate mortgage can eat less and less of your take-home pay each month.
There are many factors to consider when deciding whether to purchase or rent your next home. The key is doing exactly what you're doing now... learning how to know if renting or owning a home is right for you.
The most important thing is to not take on any payments that you cannot reasonably expect to pay for the entire term of the agreement, whether it be a $600 monthly rent twelve months, or a $550 monthly mortgage for the next 15 years.
There is another "hybrid" option to just renting or buying a house.
If you would love to own your own house in our area... and...
... renting to own a local house may be right for you!
Check out the rent to own process here on this website and if you want to get on our list to see Local Orange County California Rent To Own Homes... head over here to see available rent to own homes here in Orange County.
See our latest rent-to-own homes by going through the link below!
Not all financial institutions are created equal. Each one has different criteria to determine whether or not they will lend to a borrow, how much they will lend, and at what interest rate.
Not everyone can get a mortgage through a traditional financial institution; however, this doesn't mean that your dream of owning a home must be put on hold. Fortunately, there are private lenders for home loans in Orange County that can help prospective homeowners buy a home without going through a bank.
Private lenders for home loans in Orange County California come in handy because they are ready to negotiate with anyone, so long as some specific qualifications are met.
In order for anyone to acquire a mortgage loan from private lenders, they must ensure the borrower has valid income sources and are ready to adhere to the quoted interest rates.
Unlike most financial institutions and traditional lenders, private lenders will be very willing to make you a deal as long as you have some proof of income and a desire to have a mortgage.
Every private lender in Orange County is different. Here are some other must-know key factors to obtain a private mortgage home loan:
Private mortgages provide a powerful way for many prospective homeowners to get a mortgage, even when they may not be able to get one through a traditional financial institution. Contact Pellego at (949) 625-4533 and we can help to answer questions about private lender home loans (or we can guide you to the people who can help you). Also, for a much faster way of connecting you with a great home loan private lender, please fill in our form so we can help you quickly.
Are you a real estate investor who needs money to help you do a new deal or complete an existing deal? Are you looking for money in your state? Read this blog post all the way through learn the 4 tips to help you know how to find hard money lenders in California...
In the real estate investing space, hard money lenders are usually private lenders who work with investors to lend a secured loan against a real estate asset. If you need money to help you acquire a deal or perhaps to finish fixing up an existing deal, a hard money lender is one option for you.
There are different kinds of hard money lenders – some who only work in certain states, some who only lend to certain types of deals, etc. So the very first tip to know how to find hard money lenders in California is to figure out why you need the money.
Create a short description of who you are and what your deal is like. That way you can start looking for a hard money lender in your area and use your description as a checklist to know if they’re the kind of lender to work with you. If you’re not sure, send them your description and ask if you fit their lending parameters.
An online search of a term like “hard money lenders in California” will help you find some hard money lenders near you. Of course that’s just the very first step – the may not all lend within the parameters that you need but at least you have a starting point or “short list” to start digging in and seeing who can help.
Chances are, you have several real estate investing clubs or real estate investing associations in your area and you should scope them out and see what kind of hard money lenders might be there. Some might be occasional guests but other lenders might be regular attenders. Join the clubs that offer the most prospective hard money lenders and get to know them.
There is simply no substitute for getting to know people. Start with your network of real estate investors that you may already know and begin asking them who they know or use for hard money loans. They may not use any hard money themselves so be sure to also ask what other investors they know. Simply meet more investors and ask every investor for a hard money loan introduction. Eventually you’ll meet great hard money lenders through a trusted source.
Another great starting point is to get in touch with us. As hard money lenders, we have access to capital and are looking for the right deals for it. And even if we can’t personally help you, you should still reach out to us and introduce yourself because perhaps we know someone who can help you. Every new connection in a network has some value!
Are you an investor in the Orange County California area, or an investor looking at the 92692 zip code? Then this is for you: here are 4 reasons why you should consider using a hard money lender.
Real estate investors know that investing can tie up your capital. For most investors, that can create challenges when your capital is all tied up: How do you operate your business? How do you deal with unexpected expenses? How do you grow?
You may have some different options to fund the acquisition or repairs but many investors are turning to hard money loans to help them. Here are 4 reasons why you should consider using a hard money lender…
The top reason, which we’ve already hinted at, is that using your own money ties up your capital and prevents you from running and growing your business. A hard money loan uses someone else’s money, which keeps your capital liquid so you can spend it to grow. Some investors with newly freed-up capital realize that they can actually do more deals now!
As an investor, you’re probably familiar with the principle of leverage: getting a loan (such as a mortgage, or, in this case, a hard money loan) to pay for a large project, yet only needing to make small payments over time to pay the loan back. This makes it easier to take on large, costly projects without having to first save up the money.
Another way investors often fund their deals is through private lenders and investors who they know. However, if you do that long enough, you’ll learn that these private investors may require some extra hand-holding, or they might call you up in a panic in the middle of the night to get their money back because they need it quickly.
Bottom line, they’re nice people but they’re not professional investors. Hard money lenders are professionals who put their money to work and expect a return – they require paperwork and due diligence but they won’t be like those friend-and-family investors who fret night and day about their money.
Some investors just try to do it alone, using their own capital. When a repair comes up, they save up their money and when they have money they make the repair. But this can take a long time. It doesn’t make sense to delay generating a return on your deal; instead, borrow the money, make your repairs and generate a return on your deal sooner.
Running your real estate investing business requires capital – capital to run the business, acquire properties, make repairs and so on. Most people need extra capital and are reluctant to tie up all their money in a deal, which is where hard money lenders come in. If you’re trying to figure out whether you should borrow money for your next deal, you’ve just read 4 reasons why you should consider using a hard money lender.
So you're ready to buy some real estate. That's wonderful! In most cases, you will need to secure financing for your purchase. But how do you get a private money loan with bad credit?
Before you begin to feel defeated, learn about the different ways you can get a private money loan, even if your credit score isn't where you want it to be.
Before you apply for a line of credit, you'll want to know exactly what your credit report looks like. If there are some things you can clear up quickly, do so.
A couple of small collection items can take a huge toll on your credit and significantly decrease the amount you are able to borrow. Paying a small amount up front can help you borrow a greater amount in the long run. Sometimes you may find an error on your credit report that can reduce your score.
Ensure accounts that have been paid off are reflected as such in your report and are not listed as outstanding. Once you've gotten your credit buttoned up, you can begin thinking about different options for getting a loan.
Aside from yourself and maybe a significant other, nobody knows more about your finances and your ability to pay back a loan, more than your bank. Your bank has intimate knowledge of your spending habits, your average balances, the number of times you've had an overdraft, and they can base your loan off of these factors in addition to your credit score.
If you have a positive banking history, but low credit due to one mistake or difficult situation, your bank will see this. Find out what your bank can do for you before looking at other sources.
An option many people never even consider is peer-to-peer lending. Online services and big data come together to help connect investors and borrowers. Companies such as Prosper and Lending Club allow borrowers to receive funds without the use of an official lending institution.
This makes the process of getting your funds fast and simple. Fees are minimal and many other factors aside from credit are looked at when determining your rates and credit limit.
This can turn into a sticky situation if not done in a professional manner. If a friend or family member agrees to help you with a loan, the process should be handled in a formal way. Specific terms of repayment need to be set, a loan agreement signed by both parties and all expectations need to clearly be stated in writing.
You can even go so far as reporting the loan to the credit bureaus, this will help you repair your credit in the long run. Be careful when borrowing from someone you are close to. You wouldn't want a financial disagreement hurt a friendship or family relationship.
If you have a supportive friend of family member who wants to help but doesn't have the cash to give you a loan directly, they might be willing to co-sign on a loan with you.
This is a risk for them, and could potentially destroy both of your credit scores should you default on the loan, and your co-signer isn't able to pay. It is a responsibility not to be taken lightly and should only be done between two people who only have the highest amount of trust for one another.
Just because you have bad credit, doesn't mean you won't be able to get a loan. Explore the many alternative options available to you and do your homework before you apply for any loan.
In today’s article, we’ll take a look at some tips on renting a home in Orange County that you should consider when renting your next home in Orange County.
As property values plummeted over the latter part of the 2000’s, many people began to turn to renting. There are plenty of reasons to rent as opposed to purchasing a home, including maintenance costs, desire to live in a densely populated part of Orange County California, or the desire to live in a smaller space.
There are advantages and disadvantages to renting from a management company.
Oftentimes, a management company will quickly make repairs, and be responsive to tenant complaints. Forward-thinking companies may offer rent payment, maintenance and repairs requests, and answers to other questions on their website. Property management companies in Orange County are usually strict about who they’re willing to rent to. They’re more likely to run credit checks, and require certain scores to consider a tenant. Many property management companies are also reluctant or outright refuse to rent to tenants with pets.
Also with property management companies, they tend to charge top of the market rents because they know what the "going rate" is.
Private owners are often more flexible about who they’ll rent to. Many are renting homes that they own in their retirement account, biding time until they retire, so they’re simply looking for an occupant. If you have credit difficulties or have a dog or cat, it might be best to find a private owner.
Private owners often may rent a house at a little bit lower price than a property management company because they don't want to hassle with finding tenants or they simply may not know the local Orange County California rental housing prices well.
In the end, both private property owners and local property management companies have to follow the same landlord-tenant laws in California so the experience with either one should be fundamentally the same.
Most financial experts agree that you should spend no more than 30% of your total net income on housing costs. If you’re younger, you may want to budget more than 30%, as entry-level salaries are low, and the rental market is booming, leading to higher costs.
After renting your next home in Orange County, before assuming the lease, it’s extremely important to take photographs of every inch of the house or apartment. This can be essential to recovering your security deposit at the end of your lease. Some uncouth landlords will use your security deposit to pay for broken items or scuffed floors that existed before you moved in.
Also, when you take pictures of everything it'll indicate to the landlord that you're a responsible tenant and build that trust with you as a tenant.
Renter’s insurance protects your belongings from theft and other catastrophic losses. In some states, landlord’s rights trump tenant’s rights, and if something goes missing or damaged in your rental unit, you’ll be responsible.
By purchasing renter’s insurance, your belongings will be protected. Renter’s insurance is extremely affordable, often costing less than $200 a year... which is a no-brainer.
If you're looking for renters insurance in Orange County California just pick up your phone book and call any reputable insurance agent (the same type of insurance agents who could sell you auto insurance tend to offer renters insurance too) or head online and do a quick Google search for "Orange County California insurance agents" and you'll find a whole list of agents to choose from.
By being very details oriented during your search and moving into your new apartment or rental house, you can ensure a pleasant experience for both you and your landlord! For other tips on renting a Orange County California home feel free to email us directly or give us a call and we can provide more information and free guides to help you find a great local house to rent... even a Orange County rent to own house list in case your main goal really to purchase a house rather than rent... but your current financial state won't let you get a home loan (we can help!).
The tips on renting a house in Orange County above are quick and simple and apply to a rent to own house as well.
But if your goal is really to own your own house here locally in Orange County... but your financial situation won't let you qualify for a loan (bankruptcy recently, foreclosure recently, your income not high enough yet, etc.) then renting to own a home may be an option for you.
If that's you... then start on this website by learning about the rent to own process and even get on our Local Rent To Own / Lease Option House list to see the available rent to own homes in Orange County.
If you have any questions at all don't hesitate to contact us anytime. We're here to help! We can connect you with reputable property management companies, provide you free resources as a tenant here in California that show you your rights, and more! Or, if you do want to learn more about renting to own a local house... excellent! We'll walk you through the process and see if it's a good fit for you!
Are you tired of having bad credit? Does bad credit hold you back?
Bad credit is bad enough but when you need to borrow money, having bad credit becomes even more difficult. Banks and financial institutions may not lend to you because of your bad credit, even though you need the money. Lenders normally avoid lending to people with bad credit card history because they see them as high risk.
However, you don’t need to worry. There is another option that can help you access the money you need:
Private lenders for bad credit in Orange County California might be able to get you the money you need even when the banks say now.
Private lenders for bad credit in Orange County are independent business entities or even individuals with cash to lend.
Very often, these lenders specializing in working with people who are suffering with bad credit.
Although the interest rate of a private loan for bad credit is a bit different than a private loan for good credit, it might still make sense for you to get the loan. For example, if you have an urgent financial need, or especially if you want to consolidate several high interest loans into a smaller loan.
You'll also find that private lenders are much faster when lending money, compared to the bigger financial firms. Banks and other traditional financial firms end up being bureaucratic so they can take a while before granting you the loan. However, a private lender usually knows much more quickly.
If you want to find the perfect private lender for bad credit in Orange County, you can carry out a detailed search, direct search or even ask around. It might surprise you to discover that many private lenders are difficult to find, often because they are not widely publicized or promoted (since they rarely have the advertising budget of a bank to market their lending services!)
As you search for local private lenders, be careful that you work with a legitimate and credible private lender.
The easiest way to be certain that you are working with a legitimate and credible private lender is to contact Pellego for more information. We can also help you know what you'll need to get a loan.
Real estate investors know that buying property and fixing it up to flip or rent can be a capital-intensive process! Sometimes you need money to help you acquire the property or to bridge you to when you can sell or rent it out. There are many ways to access capital but one of the most popular ways to access capital is through hard money lenders. In this blog post you’ll read about the advantages of hard money lenders in California.
It’s not always possible to do deals with the funding, capital, or credit that you currently have. So hard money lenders give you more access to capital so you can acquire a deal or complete it.
Hard money lenders may not personally be real estate investors but many of them will have looked at several real estate deals and they can help you understand if your deal is suitable for a loan or not – which might be an excellent way to help you determine the quality of the investment you’re looking at.
If you’re a real estate investor with bad credit or no credit, or if you don’t want to touch your credit because you need it for something else, a hard money lender might not need your credit to do a deal. (Some lenders will but some won’t). The reason is because they are making a secured loan – one that is backed by the asset itself.
As a real estate investor, you’ll tie up your capital and sweat equity into a deal. And if you can’t complete that deal (because you can’t fully acquire it or you can’t get it up to a level of repair for rental or resale) then the deal will stall. A hard money loan can ease that situation and get the deal moving forward so you can complete it. Hard money lenders are not your only source of capital but they can help – that’s one of the advantages of hard money lenders in California.
You can rely on hard money lender in California to be familiar with the lending and investing laws of California. That is a valuable knowledge to rely on, and it’s one reason why hard money lenders are a better capital source than other less formal capital sources.
Perhaps one of the best advantages of hard money lenders in California is that you can do more deals. A hard money lender will get you the capital you need to move forward to complete the deal, to earn more money so you can do another deal. Using the money and profit from your previous deal, and perhaps another loan from a hard money lender, you can do even more deals or even bigger deals or even faster deals or even more profitable deals… all because of the hard money.
If you’re a real estate investor looking to fund more deals, a hard money loan might be the right choice for you. There are many advantages of hard money lenders in California so find out more about how a hard money lender can help.
If you’re a real estate investor you need to know about hard money loans because they can help you invest! As a service to investors, here are 4 situations where hard money loans are ideal.
Real estate investors know: it can sometimes take money to make money! In other words, if you want to acquire a property, fix it up, and generate a return, you sometimes need some extra money to help you acquire the property or make repairs. But what if you don’t have money or don’t want to spend your own money? That’s where hard money loans come in – they’re loans for real estate investors to help them invest. Here are 4 situations where hard money loans are ideal…
The first step of any investment is to acquire the property! However, this can tie up your capital in the property for a long time before you’re able to generate any returns from cash flow or the resale. Why tie up all your money in a deal when you can instead just borrow a hard money loan and acquire the property you need. Hint: this is a great way to scale if you need the capital to buy larger properties or more than one property at a time!
If you buy houses and fix them up to sell at a higher price, you might describe yourself as a “flipper” or a “rehabber”. As you know, this kind of investing ties up a lot of money – first there’s the money needed to acquire the property and then you have to spend even more to repair the property! Investors discover that they tie up a lot of money before seeing a cent of profit in a sale! A hard money loan can help cover some of your renovation costs so you can fix and sell even faster.
Turnkey wholesalers are a special breed of investor: they acquire a property, fix it, rent it, get a management team in place, and then sell the property. That can be a capital-heavy business, depending on the cost to acquire and the cost to repair. Hard money loans give you the capital to acquire and repair properties so you can start making money on them.
Cash flow investors know that tenants don’t always leave at a convenient time, nor do they always leave the property in pristine condition. If your tenants trashed your property before leaving then you may want a hard money loan to cover repairs so you can make quick repairs and get it rented again fast (instead of trying to finance the repairs yourself).
If you want to invest, you’ll probably discover that you need more money than you want to pay out yourself. Fortunately, hard money loans can help. Hard money loans are tools used by many investors to help cover different situations they face. If you’re an investor, these are 4 situations where hard money loans are ideal – so make sure you take advantage of hard money loans when they’re available.
Investing in real estate can be a bit different than applying for a mortgage on a home you wish to live in.
When buying an investment property, you might want to consider seeking out a private money lender to help reach your investment goals.
In this article, we will discuss how to find a private money lender in California.
Anyone can become successful in real estate investing. Finding a private money loan is an excellent way to get started.
There are many resources out there to help you learn about private lending and the process of real estate investing. Make sure you thoroughly understand the timeframes in which you need to sell in order to make a profit as well as the interest rates you will be paying.
When you are first getting started, the financing terms may seem overwhelming. Don't become intimidated.
Do you know the difference between working with a private lender and borrowing from a hard money institution?
A private lender is someone who is willing to work with you directly, without the need of a financial institution becoming involved.
You will need to pitch your investment to a private money lender and to do so, you need to know what you are talking about. But how do you find someone who is ready to invest in what you have to offer?
Think about al of the people who could potentially provide you with a private money loan. Friends, family, business associates, other investors. Basically, anyone with money to spend can become a potential lender.
And if your proposed repayment terms offer enough incentive, getting a private money loan can be exactly what you need to reach your investment goals.
As a real estate investor, it is a great idea to continually grow your network of potential lenders. There are countless groups both on and offline designed to help match borrowers with potential lenders.
Work on getting to know professionals in the industry. Knowing agents, title professionals, and other investors will keep your finger on the pulse of the market.
To find the perfect private money lender for your investment you must have all your ducks in a row, This includes business plans, and thorough research on the properties and investments you with to make.
Your payment terms must be clearly outlined and your lender should know exactly what to expect and when.
Your ultimate goal should be to develop a strong rapport with your private lender so that you can work together on deals together for years to come!
At the end of the day, it is all about being ethical. You want to create a win-win situation for all involved. Getting a private money loan can lead to a great investment for you, but your lender is also looking for a great return.
