Brista Homes: June 2013

Thursday, June 27, 2013

Fannie Mae and the Dodd-Frank Act: Investors Beware

Fannie Mae and the Dodd-Frank Act: Pitfalls of selling to financed buyers

During a recent real estate transaction, I learned a lot about Fannie Mae and the Dodd-Frank Act, which some investors and real estate agents may not be aware of. Now that investors make up a large portion of the real estate market, its important to understand the ramifications of the Act.

Fannie Mae budget requirements

My husband, a local builder and remodeler (Brista Homes), purchases properties, including condos, for investment opportunities. While investors tend to overlook condos, he finds them a lucrative investment opportunity. Buyers enjoy the maintenance free aspect and they sell quickly. If you are one of the few considering investing in condos, it's very important to make sure that the association is financially stable, 100% budgeted, and has placed 10% of their budget into reserves. In the case that you sell your investment property to a financed buyer, this is a Fannie Mae requirement and a strict one, too.

Recently, I received a call from another agent with a warning about the Fannie Mae requirements. The agent's buyers had received their loan commitment, but two days before closing Fannie Mae pulled the loan, claiming that the association was not fully budgeted, falling $4,000 short. According to the board president, the association was fully budgeted per Florida statues. The association was forced to hire an attorney.

Investor flipping rule

Fortunately, this was not an issue with the buyers for a recent condo renovated by Brista Homes. However, the buyers ran into emotional roadblocks. First, Fannie Mae now requires that investors hold on to their properties for one year before selling it to a financed buyer. When flipping, Brista Homes only holds the properties for a maximum of three months. Fortunately, the buyers were able to get a Fannie Mae exception if Brista Homes could show significant improvements within 90 days. He had to submit a break down of all the repairs and costs performed on the unit, as well as before and after photos.

About two days after the exception was granted, the buyers hit road block #2. Fannie Mae, based out of North Carolina, decides they know more about Florida real estate than our local appraisers and claims the appraisal is too high.

The Dodd-Frank Act

The buyers quickly found a local portfolio lender who accepted the appraisal. The Dodd-Frank Act produced road block #3. The buyers were approved for conventional financing, but this was later retracted due to the fact that Brista Homes did not own the investment property for one year. The only loan type available to the buyers was an ARM (adjustable rate mortgage). They had the option to refinance after one year of ownership to a conventional loan. We now were dealing with distraught buyers and a lot of lost time. Knowing how much they wanted this home, and to get this deal done, Brista Homes offered to cover a portion of the closing fees. Lesson learned for even an experienced investor!

The best type of buyer for your investment property

Cash buyers!

View: Current Lakewood Ranch Foreclosure Real Estate for sale

View: Current Sarasota Foreclosure Real Estate for sale

View: Current Bradenton Foreclosure Real Estate for sale

Wednesday, June 26, 2013

THE 60-30-10 RULE: ADDING COLOR TO YOUR SPACE

When decorating your space, divide your colors into percentages, using the 60-30-10 rule. Take a look at any decorating magazine photo to see how this rule applies. It's really quite simple. Here is how it works:

60% of a dominant color

30% of a secondary color

10% of an accent color

Mark McCauley, ASID, described it perfectly when he said, " The color breakdown is similar to a man's suit":

60% of the color is the man's jacket and pants

30% of the outfit's color is the color shirt

10% of the outfit's color is the tie

So translated, this means:

60% of color is the walls

30% of color is in the upholstery

10% of the color is in the accents or floral arrangement

This striking kitchen follows the 60-30-10 rule, using the last 10% of color as a bold accent above the cabinetry.

Afraid of using color in a small space? Don't let it scare you. This cozy nook used the 60-30-10 rule and the results are fabulous.

Tuesday, June 25, 2013

Generation Home Preferences: DREAM HOMES VARY BY GENERATION

Generation Homes: Does Your Home Tell More About You Than You Think?

Different generations have diverse preferences when it comes to choosing a home. Think about what you like in a home, then check below to see what a majority of the buyers in your age group are looking for in a home.

Generation Y House (20’s – mid 30’s)

Contemporary in design and not afraid of color

Want smaller homes, smaller yards, and low maintenance, so they have time to travel.

They can’t remember life without a computer, so they research everything, including buying a home

Tech savvy so they are more customization oriented

Culturally diverse group of friends

Likes flex spaces

Generation X House (mid 30’s – mid 40’s)

Contemporary in style

Big on entertaining

Women play a big part in the decision process

Prefers open spaces and outdoor spaces

Family oriented (50% have families so themes are important)

Wants closets and cubbies for storage

Likes flex spaces

Boomers House (50’s – mid 60’s)

Prefer single family homes with amenities

Love to entertain

Facing retirement but still want to be active

Want to be near shopping centers and medical services

Wants a floor plan to adjust to their lifestyle

Prefers off white with chocolate glaze or dark finish cabinets

Able to afford a little more in upgrades

View: Current Lakewood Ranch Real Estate for sale
View: Current Sarasota Real Estate for sale
View: Current Bradenton Real Estate for sale

For remodel and custom home estimates, please email or call Mark Ursini (941-232-148) at Brista Homes, Inc. or visit http://BristaHomes.com.

For more information on Lakewood Ranch Real Estate, Sarasota, Bradenton, or the surrounding areas, as well as any other aspects of life in the Lakewood Ranch area, please do not hesitate to contact Gina Ursini (941-812-4894) at Keller Williams Realty or visit http://SarasotaHomesCollection.com.

Monday, June 24, 2013

LET THERE BE LIGHT / Find Unique Lighting Ideas for the Home

Unique lighting ideas that add the wow factor

Unique lighting is an integral part of any room, but many homeowners do not place much importance on selecting a light fixture that adds that wow factor to the space. Lighting can actually become the focal point of the room if used the right way. There are so many options to choose from, but first you must assess the room -- what will the room will be used for? What kind of lighting will work best for this room --task lighting, ambiance lighting, or accent lighting?

Use this formula to determine the perfect amount of lighting needed for your room. Room length X Room width x 1.5 = Amount of wattage to light a room. If your room is 10 x 12, you would multiply 10 x 12 x 1.5 = 180 Watts. You can divide the 180 watts amongst lamps, ceiling lighting, wall sconces, etc.

Unique ambiance lighting ideas for an empty wall space

Box style, modern sconces create a bit of ambiance and become the focal point on an otherwise large, blank wall. This feature can be used in just about any room.

Kitchens need bright general lighting plus task lighting. Most homeowners would move toward using recessed lighting, but this homeowner uses light as if it was a sculptural piece of art. This unique lighting idea will catch just about anyone's eye.


Here we have another great use of ambiance lighting. How can this be used? Anchor your outdoor furniture around it, or think outside the box and use it as platform for your Christmas tree display.



These striking rope hanging lights add to the overall rustic feel of the home. What a unique way to tie the staircase together; linking the levels.


In lieu of recessed lighting, opt to use stylish track lighting.




Sources: houzz.com, pinterest.com, ballarddesigns.com

Wednesday, June 19, 2013

Keeping an Eye on Sarasota Native, Nik Wallenda - If You Can Stomach It!

Sarasota's Nik Wallenda Takes His Tight-Roping Talents to the Grand Canyon

First it was Niagara Falls. Now Nik Wallenda plans his next big challenge as he prepares to walk 1,500 feet across the Grand Canyon on a tight-rope. This stunt is his most dangerous ever, as he will be elevated 1,500 feet above the ground, a height taller than the Empire State Building, and he's doing it all without a harness or a net.

Wallenda, a Sarasota native, has been practicing right here in our own backyard. He's holding daily practices and providing a chance for the public to observe. Growing up in a famous family full of tight-rope walkers, it has always been his dream to walk across the Grand Canyon, and on June 23rd, he'll get a chance to fulfill that dream.

Even high above the Grand Canyon, Sarasota will still be on his mind. Wallenda recently told visitors, "When I'm walking there, I'll be envisioning myself right here in Sarasota training." After all, he's just a hometown boy who's made it big and loves sharing his success with the citizens of Sarasota.

If you can stomach it, Nik Wallenda's dangerous walk will air live June 23rd on the Discovery Channel.

Sources: WFLA.com, Huffingtonpost.com.

View: Current Lakewood Ranch Real Estate for sale

View: Current Sarasota Real Estate for sale

View: Current Bradenton Real Estate for sale

Thank you for reading. I hope you find this blog post informative. Please feel free to contact me or comment below with any thoughts.

For for a remodel or custom home estimate, please call Mark Ursini at 941-232-1948, email or visit http://BristaHomes.com.

Tuesday, June 18, 2013

Remodel Your Investment Home: The Steps From Start To Finish

Get ready to remodel and flip.

Remodeling an investment property can be an intimidating task for any investor, but with the right contractor and the proper steps, a remodel can prove to be quite profitable. Take a look at this extensive remodel by Brista Homes. The end result was a brand new home (aside from it's age) with a turn around time, from start to finish, of three months.

Step One: Estimating the Renovation Costs
Estimates were started as soon as the home went under contract. Once all the numbers were in, it was time to separate the "musts" from the "wants". For example, repairing the roof, and replacing the AC unit and water tank were a "must". Tearing down the kitchen wall to make it an open concept was a "want" but fit the budget.

As soon as the property closed, all supplies and material were ordered.

Step Two: Meet the Neighbors
Introduction letters were sent to the neighbors and the association informing them of the renovations and where to direct concerns they might have through out the process. This helped the job to start off on the right foot.

Helpful hint: As a result of the letter, you may receive calls early on about interest in the home. Make it a point to only show the home once the remodel is 100% complete, or if not, very close to it. Save their information and assure them that you will update them when the home is nearing completion.

Step Three: The Demolition
Within hours after closing, the dumpster was delivered. The demolition was started immediately. The tacky wall paper was stripped, the popcorn ceilings were scraped, the moldings and doors were removed, the kitchen and guest bathroom was gutted, and the confining kitchen wall was removed. The only two items salvaged in this property were the hardwood floors, the master bath marble tile, and a small section of kitchen cabinets that were cleaned and reused in the laundry area.

Step Four: Rough-in Mechanical Stage
These "must" items in the remodel were tackled first:
AC duct work
Electrical wiring for recessed lighting
Plumbing behind the walls
Roof repair

Helpful hints: Do not re-texture and paint the ceilings without repairing the roof leaks first. Do not repair dry wall before fixing the plumbing.

Step Five: The Installations
The following items were taken care of during the installation process:
Drywall repair
Retexturing of the walls and ceilings
Trim work
Painting
Installation of kitchen cabinets and bathroom vanities
Floor and wall tile installation
Granite counter tops installation
Hard wood floors sanded

Helpful hint: When doing a kitchen, bring your dimensions to Lowe's or Home Depot and have them design the kitchen for you. You'll get the right size cabinets with a good fit.

Step Six:Trim Out
The remodel was now ready for the finishing touches. This is also referred to as punch out and consists of the installation of plumbing fixtures, light fixtures, and outlet covers, paint touch up, etc. It's a good idea to walk through at this point and create a punch list of items that need completion. These finishing details are what makes the remodel stand out above the rest.

Step Seven: Construction Clean
The home was professionally cleaned, including the windows.

Step Eight: The Garage
The garage doubled as a work shop during the remodel process, so it did not make sense to tackle this area until the end. The painting of the garage trim and walls were scheduled at the same time as the interior paint touch up. The garage floors were acid washed, etched, and received two coats of epoxy. Not only did the homes interior look brand new, but now the garage did too.

Next, the hard wood floors were stained and sealed. The floors received three coats of sealer, and were sanded lightly between each coat.

Step Nine: Carpeting
Since workers were coming in and out of the home, the carpets were installed last. Wall to wall carpeting went into the master and guest bedrooms.

Step Ten: The Exterior
Curb appeal plays an important part in making your investment property stand out from the rest. The home was pressure washed the and damaged lanai screens were replaced. A professional landscaper was hired to clean the yard and remove the old stone hardscaping. Mulch and flowers were added along the walkway. An appealing exterior sets a good first impression and attracts buyers.

Remodeling your Lakewood Ranch investment property

Call Mark Ursini at 941-232-1948 or visit http://www.BristaHomes.com to receive an estimate on your next remodel.

Call Gina Ursini at 941-812-4894 or visit http://SarasotaHomesCollection.com to find your next investment home.

Monday, June 17, 2013

Contractor Tips for Remodeling on a Budget

Remodel without sacrificing your style or budget

Remodeling can be expensive, and many times more costly than you originally expected, especially if you start to make changes during the process. Stay on plan by following these contractor tips for remodeling on a budget.

1. Find a contractor that has a creative mind and is considerate of your budget. Be honest about your budget from the start. If a contractor knows you are serious about doing business with them, and not shopping around for a bunch of estimates, they will spend more time finding creative ways to meet your criteria.

2. Time is money. Pick a contractor and architect that will work in completing your plans in a timely manner. Before finalizing this step, make sure you are 100% satisfied with them. Making changes during the remodeling process means costly change orders down the road.

3. Shop for good deals. Once your plans are complete, and you know what is needed for the project, shop around at second hand stores, tag sales, and Craig's list for budget friendly items. It's important this step is done prior to the start of the remodel. Making changes during the process will effect both budget and cost.

Using salvaged items does not mean you need to compromise style. These 42" raised panel cabinets, the stainless steel appliances, and the black granite counter tops are all second hand finds. If you have these items on hand prior to the start of the project, a creative contractor can make it work.

4. Do some work on your own. This should be addressed during your first meeting with the contractor as some may not allow this. If your contractor is open to it, do the work when it's convenient to the contractor, such as on the weekends.

5. Have a good attitude. You know the golden rule, treat others how you want to be treated. Treat your contractor and his subcontractors with respect. Your kindness will go a lot further, especially in the case that you decide on some last minute changes.

6. Make prompt payments. Abide by the terms of your contract and meet payment deadlines. Failing to do so can hold up the project. Developing a good relationship with your contractor, means they are more likely to go that extra step for you when needed.

The Contractor's Contract: What Should Be Included?

A smooth remodel project is only 8 tips away.

You've chosen a contractor for your remodel project. During the initial pre-construction and estimating process, many things have been discussed, so trying to keep track of conversations without a contract can lead to discrepancies and conflict. To ensure a smooth working relationship, follow these 8 simple tips on what should be included in a contractor's contract.This way, if there is a misunderstanding, both parties can refer to the contract for resolve.

The contract. The contractor's contract is a must. Do not begin any project without one.

An address. Be sure you have the contractor's physical address and not just a P.O.box. If you need to track your contractor down, you won't find him at a P.O. address.

A license number. Many states require persons who want to perform general, building, and residential construction to become licensed. Proof of a license means your contractor has taken the required courses, passed the state exam, and is playing by the rules.

Insurance. If an accident happens while working in your home, you want to make sure you are not held liable. Liability insurance protects the homeowner, contractor, and the contractors employees. Make sure your contractor is carrying contractor's liability insurance.

Scope of work. The contractor's contract should present a description of the work to be performed. If your contractor is performing work off your designer's plans, the designer and the feature sheet date should be referenced in the contractors contract.

Agreement price and payments. The contractor's contract should state the agreed upon fee to complete the project. Your payment schedule, deposits, and draws should also be outlined in the contract.

Exclusions. There are certain limitations inherent in any addition or remodel project. Your contractor should make every effort to anticipate all expenses, however there will be unforeseen conditions or defects which the owner may be be responsible for such as unexposed mechanicals damaged in existing walls, rot and deterioration, structural defects, insect infestation, and defects to roofing and flooring.

Warranties. The contractor's contract should include a limited warranty against defects in original materials and workmanship which results in actual loss or damage for one year from the date of job completion. Upon written notice, your contractor should agree to either repair or replace, at his option.

Source: Houzz.com/ Kenny Grono