BB&T was established in 1872 and for the past 140 years we have shared our knowledge with our clients.  By offering sound advice and personal attention, we help our clients make informed choices as they manage their day to day finances and set a course to reach their long-term financial goals.

In the area of mortgages we offer an array of mortgage loan products that I’m sure together we can determine the right fit for your personal financial needs.  First time homebuyer?  We have a product called the CHIP that in some cases offers 100% financing without mortgage insurance.  Building a home?  We have a Construction/Perm product that has a one time closing that provides financing during the construction phase and when the home is completed rolls over to a permanent loan.  Looking to purchase an investment property?  We offer Non-Conforming financing on investment property.  These products are just a few of many mortgage financing options offered at BB&T.

Debbie is one of our preferred lenders and BB&T is a bank that I fully endorse. Their products and services always seem to outshine the competition! Please consider contacting Debbie Malone at BB&T for all of you lending needs! From all of us at The Fred Holland Team and BB&T, we wish you a Merry Christmas and Happy New Year!

Debbie Malone dmalone@bbandt.com (843) 406-6654

Origination Fee= 1%

Attorney Fee’s

Pro-rated Items such as interest, HOA fees, insurance and more.

Title Insurance

Misc Fee’s

Appraisal

and more….

A good way to have a buyer save their liquid and bring the least amount of monies to the table (if any) is to request the seller to pay the buyer’s closing costs & KEYWORD pre-paids. I think it is vital to have a buyer with plenty of reserves in the bank when they purchase a home. By the seller paying the buyer’s closing cost it enables the buyer to only increase or maintain the amount of reserves they already have. Unless you are going FHA the max amount that can be paid is 3% of the purchase price. In past years 3% used to cover almost all of the closing costs. As of late I have noticed that 3.5-4% is what is needed to cover closing costs. Of course this all depends on when you are closing, where you are buying, how much are you financing, are you receiving any discounts, the purchase price of the home & more.  With FHA financing the seller can pay up to 6% in closing costs. This cannot be applied to a down payment though. Unfortunately, the down payment assistance program is no longer available. I personally felt this was a wonderful product that allowed a responsible buyer with good credit, work history and more to purchase a home if they did not have 3.5% to put down. Before you make an offer on a house ask your agent to run a HUD for you or get a good faith estimate from the bank. Review the form and pay attention to your closing costs. Ask your agent if you should ask the seller to pay closing costs. In the standard South Carolina real estate contract their is a closing costs clause, in this section I write “seller to pay 3% in buyer’s closing costs and pre-paid items.” In my experience most buyer’s request the seller to do so.  With that said, it may not be a good option for you. For example, if you are financing much less than the offer price I would suggest just offering 3% less instead of asking for closing costs. Remember a big part of your actual costs are based off the loan price and the seller may be able to pay all your closing costs with less than 3% allowing them to net more at closing. Please ask your lender what happens to the extra monies if your total closing costs are less than 3% and you requested the seller to pay 3%. Some products or markets may allow monies to be applied in different places.

The Fred Holland Team sincerely hopes you enjoyed this article. Please remember to consult your local expert before taking advice from this blog.

Find an Agent: I cannot stress the importance of using a buyer’s agent. Please contact a local agent before you decide to purchase a home. A document that you need to be familiar with is a buyer’s representation agreement. This is a contract that states you are hiring this agent to work for you. The terms of this agreement may vary from state to state and agent to agent. FACT: I have never received compensation from my buyer’s. Every buyer I have ever worked with I received my compensation from the listing agent whom receives it from the seller.

Get Pre-Approved: Its vital to speak with a lender and spend 15 minutes getting pre-approved before searching for your home. We want to make sure first and foremost that you are aware of the costs when buying a home and that you are searching in the right price range.

Find Your Home: Once you determine the monthly payment you are comfortable with, you should then ask your agent to find homes in that price range. Make sure to be specific and PICKY. Do not rush into buying a home regardless of what outside pressures there may be. Ask for comps so you feel comfortable with the price you are paying for the home.

Write an Offer: Once you have found your home, you will then write an offer. Make sure to have contingencies in place to protect you. I will do a blog on contracts soon.

Apply For a Home Loan: Once the contract is ratified you will meet with a lender to apply for a home loan. The loan process takes on average about 28 days in the Charleston Market.

Inspection: Hire an inspector to inspect the home. Once that inspection is done and with the proper contingencies you can then decide to move forward, back out, negotiate things to be fixed or the price of the home to be reduced.

Insurance: Call different companies to get estimates on homeowners insurance. Remember that in some areas a flood policy and/or wind & hail policy may also be required. Most companies offer discounts for having your home & auto insurance through them.

Hire a Attorney: Hire an attorney to handle the closing and documentation preparation.

CL100: I try and negotiate the seller to pay for this but you should ask your agent if this needs to be done. In our market I ask all clients to make the contract contingent on a clear CL100. The main purpose of a CL100 is to look for active termites, previous termite activity or damage. This is not the only purpose.

Final Walkthrough: Sometime before closing you and your agent should do a final walkthrough of the home.

Closing: Once all of the above is done you will meet at an attorney’s office to sign the documents thus giving you ownership of the home. Make sure to review all the documents carefully and ask questions. The HUD-1 is the settlement statement. This will itemize all the closing costs to you and the sellers. Review this document with your agent and make sure everything is correct.

CONGRATULATIONS! You have completed the process of buying a home and are now known as a “home owner”.

Please keep in mind that real estate is constantly changing and all markets are not the same. Also, keep in mind that this is a blog and the process of buying a home is much more detailed but this is a very basic description and should help give you some insight into the process. Always CONSULT your agent!

Fred Holland hopes you enjoyed this blog!

First and foremost a short sale is not a foreclosure! A short sale is a property that is still owned by the person who bought the property. Unfortunately the individual ATTEMPTING (take note) the short sale has usually run into financial hardship. In most cases they have tried to sell the home well before they decided to do a short sale but market conditions do not support the price they owe. 

A foreclosure is a property that is owned by the Bank. Another term associated with them is REO (real estate owned). After the foreclosure process is finished they then hire an agent (in most cases) to list and sell the property. As a buyer you have 3 chances to purchase that home. The first is before it’s foreclosed on. You can find which properties are about to be foreclosed on by hiring a thorough agent. You can go to the auction (if auctioned) and attempt to purchase it there. Lastly, you can purchase the property once the bank takes ownership and it has been listed.

Most individuals do not know what a short sale is or that they have that option. In that case an educated agent can honestly be a saving grace.  If the individual is behind on their mortgage and the market is not supporting the price they owe, a short sale can be the answer. I found out that most individuals believe there was nothing they could do but let the home go into foreclosure. If they did know about short sales they did not know that a short sale can possibly save that persons credit. In speaking with experts I have come to the conclusion that the day a bank forecloses on an individual their score drops 200-300 points. Since SC is a judicial state the bank can the place a deficiency judgment on that person credit after they sell the property. In most cases the bank takes a large loss compared to what is owed when it sells. That could drop your score another 50-100 points.  By doing a short sale your worst case scenario would be a deficiency judgment for the difference between the amount owed and what it sold for. In a lot of cases they don’t even place a judgment on your credit! Reasons to not be approved for a short sale by the bank include but are not limited to: having a large amount of savings or taking a loss well below the market value of the property, which is assessed after the BPO is hired.

Purchasing a short sale can take up to 6 months. You have to make the contract contingent on 3rd party approval. That means you have to get approval from the bank. Once you write a contract on a short sale the seller will put a financial packet together and send that with the contract to the bank. The bank will then assign a negotiator to that file and order a BPO. Once the bank approves or disapproves the price you can then move forward with the purchase of the home. When I take a listing that is going to attempt a short sale I try to keep the price within 25% of the amount owed. That will increase the chances of it being approved. If you are seller it is important to know that you are ATTEMPTING a short sale and in no way, shape or form does it halt the foreclosure process. You can be foreclosed on while attempting the short sale!

Purchasing a foreclosure is a much faster and smoother process. It is pretty much the same as a purchasing an owner occupied home. The main thing to know about is the bank addendums. These are documents that you will have to sign and cannot alter if you want to purchase the home. They are tailored to protect the bank and punish the buyer for any type of breach. Make sure to review these addendums thoroughly before signing them.

Please note that this blog does not guarantee any scores on your credit or promise that a short sale is your best option. Please consider renting, consult with an attorney or your agent before doing anything. This is not a recommendation as each person circumstances may vary. Please understand that the process goes into much greater detail but I tried to keep that as short and sweet as possible while including some of the important information.

THE FRED HOLLAND TEAM

Each time LaJuan or I get a new listing we will post it in our blog. This week we have two new listings!

       1960 Folly Road Charleston, SC 29412      

PRICE:  $2,200,000

4.00 ACRES with Marsh VIEW, PRICELESS LOCATION and ZONED C4! TALK ABOUT EXPOSURE. A recent study indicated that on average 1000 cars per hour arrive on Folly Beach. Another study done by SCDOT indicates that 14K-18K cars would passy by this location. As many locals know, the weekend traffic is at a stand still. This means more potential customers for your business as they wait to get on the beach. There is also a new gas station and Piggly Wiggly directly across the street! Considered a luxury to some, this property has public utilities available and can be accessed from Folly Road or Teal Marsh Road. The property is in the City of Folly Beach and has design board approved plans which have been uploaded. The plans contain mixed use and call for a 42 unit residential community and strip center.

1030 Secessionville Road Charleston, SC 29412

Price:  $199,000

JAMES ISLAND BELOW 200K! This 3 bedroom 2 BATH (take note) home is located only 10 minutes (that’s with traffic) from downtown, 5 minutes from Folly Beach. Huge fenced in backyard for pets with 7′ X 10.5′ shed. Two bedrooms are carpeted and share a bathroom on the east side of the home. Between those bedrooms and the master bedroom lies Italian ceramic tile in the kitchen and dining area and floating hardwood floors in living room. Living room has 14′ vaulted ceiling, kitchen and dining area have 12′ ceilings. Master bedroom has new brazillian cherry wood floors and 12′ vaulted cathedral ceiling. The heating/AC unit is just a few years old. Two huge live oaks on either side of the two-car driveway.

Please contact the Fred Holland Team with any questions regarding these listings and more… josh@fredhollandrealty.com   or 843-343-1307

These sure have been trying times for homebuyers, real estate brokers and mortgage lenders alike. The most asked question seems to be is this the right time to buy? Most professionals in the real estate business will tell you yes, there is no better time to buy and I am inclined to agree. I do however believe you have to sum up your current situation, such as job stability and do you have enough money for a down payment as well as can you afford to make a mortgage payment each month. Times are very different from a few years ago when a mortgage was not at all very difficult to get. Mortgage rates remain at an all time low and there are still very attractive mortgage programs available for first time homebuyers and repeat buyers as well.

The Federal Housing Administration, generally known as “FHA”, is an excellent first time homebuyer program that requires a minimum down payment and very attractive rates. An FHA insured mortgage has allowed many Americans to buy their first home that have less than perfect credit and might not otherwise be approved for a conventional mortgage.

I recommend that you find professionals that you can trust and you are at ease with, you will be spending a lot of time with these folks and it is important that you can communicate well with them. Next, get pre-approved for a mortgage before you start to look at prospective homes. Be prepared to provide your lender with income documentation and bank statements showing you have the available funds for a down payment.  I cannot stress this enough and it is a very simple process that in many cases can be done in a single visit to your mortgage professional. This will ensure you are looking for a home in the price range you can afford and will also let your real estate agent see that you are serious and ready to make a qualified offer. Obtaining a pre-approval letter from you lender and presenting it with your offer to buy might also return a quicker acceptance buy the seller of the home especially if they see you have already started the approval process. Buying a home is one of the most important and rewarding decisions you will make as long as you have the right people working with you.

MORTGAGE BANKER CARSON WILLIAMS:  BANK OF SOUTH CAROLINA  (843) 958-1046

81-E  Ashley Ave. Charleston, SC 29403

Price: $148,900

Bedrooms:  1     Bath:  1    Sq. Footage:  543   Built:  1850

Description:

SHORT SALE & MAJOR PRICE REDUCTION! PRICED EXTREMELY BELOW VALUE!  This condo is located minutes to the marina and connector. You can enjoy jogging around colonial lake or walking to all the wonderful restaurants, night life and Downtown activities. Why pay for a parking spot when your condo offers off-street parking and you can walk or ride your bike to MUSC, VA or C of C. Don’t miss this chance to buy a 1 bedroom Downtown condo in the prestigious Harleston Village.  Investors imagine the rental demand to students and medical professionals! Please note home has been vacant for some time and was reduced 60K+. At 218K it was still priced below comps based on price per sq foot! HOA INCLUDES: flood insurance, exterior insurance, pest control, annual termite bond, water and more. This is an attempted short sale so it’s contingent on 3rd party approval.

Contact the Fred Holland Team for more information regarding this listing and more. josh@fredhollandrealty.com or 843-343-1307. Or visit our website at www.fredhollandrealty.com

 In this blog I will be discussing the different types of investing in real estate. I have found out that when most people think of investing in real estate the first word that pops in their head is “flip”.  That is only one of many ways to invest in real estate. A local lender told me this when his CEO visited them at a retreat. He spoke about the Charleston Market and how he, like the many experts, felt the Charleston Real Estate Market will be one of the best in the nation. With the instability in the bond, mutual fund and stock markets investors are looking for something concrete. (literally)  I would like to go into detail about several reasons experts believe our market will be one of the best but I will save that for another blog.

The most common call I receive when it comes to investing in real estate is about foreclosures and short sales. I will eventually post a blog explaining the process of buying a foreclosure or short sale and how they differ. A foreclosure or short sale can be great buys for investments but more importantly first-time home buyers. Foreclosures/Short Sales are priced extremely well to avoid low-ball offers. This means that in most cases they sell extremely fast.  Foreclosures/Short Sales allow buyers to buy in communities that they could not normally afford to live in. It also allows them to possibly have some equity and use the home as a stepping stone.  In most cases the home will need immediate attention cosmetically. We call this swequity.(sweat+equity)

On the beaches you have vacation rental investing. This by far is the highest dollar amount return you can receive.  The actually percentage return is not nearly as good as another type of investing that I will explain below. Foreclosures on the beaches are a little rarer than the surrounding areas.  With that said, beaches have depreciated drastically in the last few years and many believe this has created great buying opportunities . That means you have a chance for instant equity or possible appreciation in the future. To obtain the highest ROI (return on investment) then beachfront is the way to go.  We have several homes for sale and in the rental program. Examples include a 2.1M dollar property that returned over 100K in rental income during its first year in the program. We have 1.1M dollar listing that returns about 80K a year. Once you move from beachfront your dollar amount return begins to drop. If you are looking for the best returns based on percentage then some examples would be 2nd row listed at 499K and averaging 40K a year in rental income.

Another type of investing is in low-income housing. When it comes to investing in Charleston, this is your lowest risk. With Mutual Funds, Bonds and Stocks not returning what they have historically many people are pulling their money out and looking for other areas to invest in. This has had the highest demand for the past few years. The idea is to buy in areas that are low-income and at a price range of 70K or below. On average a 3 bedroom home rents for $725.00 a month. With the right agent and good negotiating you can also buy with instant equity. That means a 70K home rented at $725.00 a month would return at least 12% in rental income alone!  Any appreciation or equity is a bonus! These homes usually require low maintenance and with a good inspection you can know what you are getting into prior to closing.

There is also long term rental investing. This does not return as high a percentage as low-income investing but it can be a good investment.  The average 3 bedroom 2 baths home brings about $1200.00 a month in rental income. This does depend on the location and area. The idea is to find something below market value, rent it so it pays for itself and when the market is corrected sell for a profit. You will need a diligent and experienced agent to find the best possible buy at that time.

Lastly, you have flipping. Currently this is the riskiest way to invest in Charleston Real Estate. I prefer people  that are planning to flip to purchase the home with cash. This way if it ends up sitting on the market for a while you have very little overhead. The idea is to find an extremely good buy. It can be a total renovation, tear down and/or a home that needs some “TLC”.  You would then purchase that home, have your contractors lined up and put the home back up for sale as soon as possible. Having experience in this type of investing I know firsthand what it takes to be successful. Cash is king when it comes to “flipping”.

We are also certified HUD buyer agents. Please contact me for more information.

THE FRED HOLLAND TEAM

Please consult your agent before purchasing a home. Please note that this blog is not a recommendation or advice on where and what to purchase. I cannot predict or guarentee any appreciation, equity or profits. There is always risk when investing.

106-3J  W. Arctic Ave. Folly Beach, SC 29439

 Price: $499,000

Bedrooms: 3   Bath:3    Sq. Footage: 1385   Built:  2004

Description:

BEST PRICED UNIT IN PAVILION WATCH! Beautiful top floor unit with BUILDING 3 UPGRADES and a newly renovated Master Bath. Enjoy the Views of Ocean and Folly Fishing pier. This condo has easy access to the beach. This gated community amenities include two elevators, pool and clay tennis court. This fantastic pricing includes all furnishings including new LCD HDTV’S. 9 foot ceilings and crown molding set off the living area. There is off-street parking and plenty of room to relax on the covered patio overlooking the Atlantic Ocean. Could be an income producing vacation rental.

 Contact the Fred Holland Team with questions or to request more information!   (843) 343-1307 or josh@fredhollandrealty.com