Page 10 April 12, 2018 EL SEGUNDO HERALD
ESTABLISHED 1980
310-322-0066
kirkbrown@gmail.com
We Work Hard
Everyday to Exceed
Your Expectations!
Kirk Brown • BRE# 00556073
Kirk Brown Jr • BRE# 01359453
NEW LISTING!
521 E SYCAMORE. Fantastic 3 bedrooms, 3 baths.
One story home. Amazing newer construction!
* 7402 EARLDOM, PLAYA DEL REY
Stunning 4 bedroom, 4 bath. Approx. 2,660 sq. ft. Master Suite.
Amazing Kitchen, Fantastic Outdoor Space and Impressive Views!
Asking $1,850,000.
* 825 CENTER STREET, EL SEGUNDO
I N E S C R O W
2 bedrooms, 1 bath. Large Family Room. 2-Car Garage with 3/4 bath. Great Lot in Center
of Town. PRICE REDUCTION! Now Asking $1,175,000
S O L D ! !
* 1509 EAST OAK AVENUE, EL SEGUNDO
Best Location in Town! 3 bedroom, 2 bath + Bonus Room. SOLD Represented Seller
* 707 BUNGALOW DR, EL SEGUNDO
S O L D ! !
S O L D ! !
Represented Buyer
* 2223 ROCKERFELLER LANE, REDONDO BEACH
Represented Buyer
RENTALS
1 BD/1 BTH Apt, Center of Town, w Enclosed Garage!
2 BD/1 BTH Home, Center of Town, Large Yard + Enclosed Garage!
2 BD/1 BTH Apt, Great Location, Enclosed Garage!
Shiela Simplifies Sales
Credit Tips For Buying An Investment Property
(BPT) - If you love the idea of being a
landlord, and don’t mind being on duty around
the clock, buying an investment property may
be the wealth-building option for you.
Property values have enjoyed a steady
increase over the decades. That’s why real
estate has earned its reputation as a sound
investment that builds wealth and credit.
Most people, however, don’t have the quantity
of cash on hand to purchase a house or
apartment building outright. Still, if becoming
a landlord means taking out a 30-year
mortgage, the monthly payments from the
tenants should be enough to service the loan
and build equity for you, while leaving some
cash flow so you can maintain the property.
If buying investment property sounds like a
step you’d like to take, here are some credit
considerations every investor needs to know.
1. Be mindful of the inquiry stage
Once you decide to purchase an investment
property, it’s important to do everything you
can to make sure your credit score stays as
high as possible until the loan is approved and
signed. Your goal is to land the best possible
interest rate, because even half a percentage
point can add tens of thousands of dollars
of total interest payments to a 30-year loan
(and affect your wealth-building abilities).
During this time, things like continuing
to make on-time payments on your existing
loans can be helpful in maintaining your credit
score. However, sometimes people unintentionally
lower their credit score when they’re
actually trying to be fiscally responsible. For
example, when shopping around for the best
mortgage rate, keep in mind that multiple
inquiries can have a negative effect on your
credit score, especially if you don’t have a
long credit history. Fortunately, many credit
bureaus recognize that you may be comparison
shopping, so make sure you do this within a
defined time frame of 30-45 days.
2. Keep credit utilization low
When maintaining a property, having access
to credit can be helpful because it lets
you make repairs and keep things in good
living condition for your tenants. One thing
that can affect your credit score is the amount
of credit you’re using.
Unfortunately, keeping a higher balance
could result in a lower credit score. As a rule,
keep your credit utilization at 30 percent or
less. For example, if your credit card has a
$5,000 limit, the balance should not get any
higher than $1,500. Throughout the billing
cycle, keep an eye on the balance, and pay
it down when you can.
3. Keep a cushion of cash
It happens. You get
that call about a water
leak, and before you
know it, you’re spending
your Saturday evening
pricing plumbers,
searching for one whose
overtime rate is only
in the range of mildly
outrageous.
Being a property
manager means expecting
the unexpected, and
one of the best ways
to be ready is to have
enough cash at the ready
to take care of these
problems. Build an emergency fund in your
savings account, and keep your credit paid
down so you always have that cushion to fall
back on during any crisis.
4. Beware of low and no-interest financing
deals
When it’s time to replace the oven range
or a refrigerator, one of those “no payments,
no interest for 18 months” deals can seem
like a lifesaver. It sounds like a great deal,
but these alluring promises are designed to
play a psychological trick on you. Because
you don’t have to pay yet, it doesn’t really
feel like spending money when you’re making
the purchase.
However, once the interest-free promotional
period is up, a double-digit interest rate often
kicks in. If you don’t have the cash to
pay off the balance or make payments, you
could end up with penalties that can affect
your credit score. Before you sign on, always
read the fine print.
Before you invest, do your research on
credit scores and know your pros and cons.
More than 8.5 billion credit scores compiled
by VantageScore Solutions were obtained
and used in the U.S. between June 2016 and
July 2017. Whatever your stage in life, the
market offers many options for those who
wish to build their wealth through investing
in real estate. *
EL SEGUNDO FAMILY SINCE 1924
CalBRE# 00942595
310-529-9922
shfowler17@gmail.com