Real Estate Investing

Housing plans are the fun part of building a home, the seed that starts the dream. You may be flipping through a Southern Living magazine, for instance when you discover suddenly that it is their housing plans issue. Nary a thought had entered your mind before this point in time, but you are suddenly obsessed. You can picture yourself sitting on that wrap-around front porch with coffee in hand, listening to the birds sing in the trees on the perfect piece of land you’re going to find. I know, I’ve been there.

Though housing plans are a good place to start, there are tons of other considerations before breaking ground on a home. The housing plan phase is undoubtedly important, however. In browsing the endless catalogs and web sites selling house plans, it is easy to get snowed on the square footage or some other technicality, a mistake that could cost thousands of dollars to fix. Of course, hiring an architect is always an option and may be worth the extra cost just to have someone in case of emergencies to “talk the language” with all other involved parties.

About.com offers a superb list of things to consider when browsing building plans. They include:

Buy a plan that suits the land: Contrary to the advice of some builders, this article suggests picking your land first and then your house plan, not the other way around.

Homes can be changed: If your house plan doesn’t have a porch, don’t despair. It can be added. The entire exterior can quite easily be altered to look completely different, in fact. It is recommended that you look hardest at the home’s interior, because altering the interior is where the big bucks come into play.

Blueprints can be changed: According to this article, almost all pre-designed blueprints purchased from any given company require changes of some sort. The buyers may want a larger garage, a fireplace, a larger front porch, etc. It can be done, though the blueprints should be as close to ideal as possible.

Other tips include keeping an open mind, stop shopping for the perfect house (it doesn’t exist), and envision a home’s hidden potential. Don’t view how it looks now, view how it can look eventually with a little TLC. As far as places that carry stock plans, look for lumber suppliers (especially national chains), Southern Living and similar magazines, pre-fab home companies and tons of Internet web sites.

Good places to seek out that perfect plot of land for your dream home include:

Real estate agents: They can give you the skinny on new or upcoming listings before the information even pops up on the MLS.

Internet: Use the search engine terms “land for sale” or “lots for sale” and specify the desired town or geographical area. You may be surprised at what information is available.

Newspapers: Never underestimate the Sunday edition classifieds.

Government: Look through legal plats in local government offices.

Foreclosure lists: Land bought at auction can be a real steal, but be prepared to pay cash.

Other sources include drive-by searches, word-of-mouth, real estate magazines and home builders and developers (by phone or web site). Happy hunting!

When the wolves are at the door, it can mean big problems for a cash-strapped homeowner. When there’s too much month left at the end of the money, what does a person do? The following are some tips to ease your pain.

Don’t procrastinate. If you are unable to pay the mortgage even just one month, contact your lender and try to work something out. They will typically need your account number, income tax return, list of household expenses and any benefit statements from disability or Social Security. Lenders want to help you. They don’t want to deal with marketing, fixing up and reselling your house.

Prioritize correctly. Seriously, don’t pay your credit cards before your home loan. While having credit cards may seem most immediate at the present time, it is a thousand times more difficult for a person to recover emotionally, mentally and financially after losing their home. Don’t let this happen to you.

Know your finances. Keep your checkbook balanced (or at least as close to balanced as possible). Stay on top of your bills, know which are current and which are late. Budget your money and plan your cash flows, based on expected future income. Those with unpredictable incomes from sales jobs or self-employment should pay the critical things first - house, food, utilities - and then work their way down the list of expenses from there. Knowing your finances is an essential part of knowing when to contact your lender.

Know your rights. This, along with step 3, is critical in understanding whether you are making a great deal or getting the short end of the stick, so to speak. Get a tax professional or attorney involved to advise you on your options.

Remain level-headed. Weigh all your options, with input from experts. Face up to your circumstances with an honest and realistic, yet solution-oriented, perspective. Be willing to fight for your investment, but also be willing to consider quick outs like a pre-foreclosure sale.