Vacation Home Plans

Vacation Home Plans: Invest Now

noreply@blogger.com (Stacy Nelson) — Wed, 20 Feb 2008 14:01:00 +0000

I don't have a lot of extra cash lying around waiting to invest, especially when I think of the impossibilities of owning a vacation home. Having vacation home plans is what the rich do right? Not middle Americans.

Wrong! I cannot tell you how many of my friends look at me and my real estate portfolio and say something to the effect that "I could never afford that" or "wow, business must be great to afford a second home" or "I wish we could do that".

What are you waiting for. Listen, I am in the mortgage industry, one which has been crippled as of late. Many of my friends are in real estate or title insurance or some other financial service industry that is being hit. People are loosing their homes left and right and the economy is really hurting.

Sounds like a bad time to take that extra financial risk doesn't it? Just lay low for the next few years until the economy starts to recuperate, right?

No way. It's like an after Christmas sale out there. You can pick up properties for a fraction of of the cost and with the interest rates so low, well it's a no-brainer to afford the mortgage payments.

We refinanced our own home for a $600 savings in payment each month on a 30 year fixed (don't get fancy with your loans, go with the tried and true). Now we have a line of credit to use for a down payment on a foreclosure. By keeping a keen budget in mind, if we purchase a second home our whole mortgage payment goes up by $200 a month for two houses instead of one.

Business doesn't have to be booming to afford this. And because the market is so low, should we decide it's not working, we dump the property back on the market in two years.

It's not quite as easy as a blue light special but it does make a lot of financial sense. My tips are easy:

Do your research and check http://www.zillo.com for property comps when you see a property you are interested in. Find out what properties are worth to see if this really is a bargain or not.
Become friends with a title rep. They can provide you with Notice of Default lists and Notice of Transfer lists so you can keep on top of the market at any time.
If you don't have a title rep around or you are looking outside your county, join an online foreclosure site like RealtyTrac.com or Foreclosure.com
If you want to check out an auction, visit one first to get the feel of it. You are going to have to keep cash available to be ready to move quickly and you're going to have to really know the neighborhood to evaluate on the fly.
Hire professionals. Don't act as your own Real Estate Agent but do do a lot of research on your own. Do the leg work and then let your agent negotiate with the banks and other parties involved. It's what they do.

Vacation Homes Plans: Trustee Sales and Free Foreclosure Lists

noreply@blogger.com (Stacy Nelson) — Fri, 25 Jan 2008 14:06:00 +0000

There is of course a third option when making your vacation home plans and that is to look into trustee sales and scanning free foreclosure lists. This only works if you are within a reasonable driving distance from where you would like to purchase your second home. My husband and I are exploring this option right now and are very excited.

I am in my real life a mortgage broker, so I do have access to a good networking system of title reps, many of which have access to Notice of Transfer information. Well one of my guys who knows I was shopping around in the Palm Springs area sent me a note about a condo in Rancho Mirage. It was going up for auction for a third of the listing price at $61,000. Really? Is that possible? How does that work?

So, researcher that I am, I started making calls and reading information and doing my homework. There are deals to be had at these auctions but it takes a lot of additional leg work to get to the point where you've achieved a purchase.

My tips for now are:

1. Know the areas around where you are looking very well. When new auctions pop up, often you only have a couple of days to make a decision and short of looking at properties every day (which is time consuming and tiring), just know the general area of each of these homes. My husband and I figured that the general area where this condo was located was good.

2. Have realistic expectations about the home and its condition. We figured it needed some TLC and according to the agent, it needed a lot.

3. Don't get attached. We calculated that if we hated it, we would just list it back up on the market at a low price and offload it for a small profit.

4. Don't expect to win. There are some really great professional bidders out there who do this for a living. If you found the bargain I guarantee that they did too.

5. Have cash available. We actually missed out on this condo because the cash we needed for purchase had a week delay in us getting our hands on it.

6. Set your limit. Go with a certain budget in mind - and carry it with you -so you have to walk away from the buy when it reaches it.

7. Keep an eye on the new listings. There are two online lists that I like, mostly because they are the only two that I could preview for free before I bought a membership. I have links below, the first has great auction information with financials and the second actually has a tab for tax liens, but I'm not quite there in my knowledge yet, so I'll floor that one for later. Both sites have blank search where you can even see if there are things available in your area. If there are listings you are interested in, then you can sign up for their free 7 day trial before you decide if this route is for you.

Happy hunting!

Vacation Homes Plans: Why Build When You Can Buy?

noreply@blogger.com (Hugh VanHorn and Stacy Nelson) — Tue, 01 Jan 2008 02:10:00 +0000

When my husband and I were talking over our vacation home plans, we decided (as the novices and romantics we were) that building was the way for us. A year later we have somewhere to hang our proverbial hats. But when we spoke with our cousins from Canada, this was not the best option for them. In fact, their vacation home plans were completely at odds with our own. They decided to opt for a small pre-owned condo in the Palm Springs area for about 200,000 and they called it a day.

That was it? No year long construction? No agonizing decisions over kitchen faucet fixtures? No late night emails to the architect to move that door over by two feet resulting in delays and more money (which we wisely decided against mind you - it was just a thought)? In fact, with the huge number of bank foreclosed properties on the market right now, my cousins called me up, I sent them about 20 properties that fit their criteria. They decided to see 17 of them in a free week when they were coming out to visit anyhow. They placed bids on 9 before they went back home and voila! 38 days later they were proud owners of a maintenance free condo in Palm Desert where they can escape the cold winters.

It got me to thinking whether or not we had made the right decision in the first place. So I did my research and my husband and I made another radical decision. We are going to use this soft market and become real estate investors. So, we refinanced the mortgage on our primary home, opened a money merge account so we can pay off our interest only 30 year fixed loan in 7 years and bought our now third home in LaQuinta, California.

The best part is, we only increased our house payments by $200 and we now own 3 homes in lieu of 2. We were emphatic about keeping the cost of the desert home under $200,000 and we found a BEAUTIFUL neighborhood in LaQuinta called The Cove, nestled in the mountains with walking trails and a quaint downtown.

Because I am so excited about this new investment, I am going to spend some additional time sharing some of the premium properties in the Coachella Valley so you can also appreciate the benefits of investing in real estate right now. Our vacation home plans have changed their focus, have yours?

Vacation Home Plans: Great Towns

noreply@blogger.com (Stacy Nelson) — Wed, 03 Oct 2007 01:37:00 +0000

I came across this article on vacation home plans when I was first looking to buy the lot for our own vacation home. It talks about the best places to invest in a vacation property, which is very useful unless you already have a location in mind. For us we went with the place we loved to vacation already, a small coastal getaway where we could watch sunsets on the beach and still drive there within 5 hours so we could actually get away for a long weekend.

For others looking at building as an investment as well as a vacation spot, these towns are worth checking out.

I love real estate investing. And when it comes to real estate, why not make it a twofer -- a vacation home and an investment right? Vacation homes in the right places offer financial and lifestyle rewards -- that's a double return on your money. But unless money is no object, you have to buy smart to realize the lifestyle benefits you seek in a vacation property, while not taking on too much financial risk. So where can you buy smart?

So where can you buy smart? First, a few ground rules: I do not recommend the "cliché cachet" places. These are vacation places made trendy by the rich and as a result, have already appreciated -- locales such as Vail, Aspen, Colo., Sun Valley, Idaho, Carmel, Lake Tahoe, Calif., and the Hamptons in New York. Other areas to avoid are "middle of nowhere" locations. Sure, Bozeman, Mont. or Buena Vista, Colo., offer great vacation surroundings, but these areas can take days to reach. Hurricane-prone areas, which cost a lot to insure against natural disasters, are also omitted from this list.

What Makes a Smart Vacation Home Buy?

So here are my criteria to identify a smart vacation property:

1. Affordable: homes for less than $350K
2. Convenient: less than three hours from a major city
3. Active vacation rental market
4. Plenty to do.
5. Room to grow: an unsaturated market, situated near upscale destination

Asheville, North Carolina Long popular among Easterners for its Biltmore estate, this modern and happening midsize city is located in the Blue Ridge Mountains near the Great Smoky Mountains National Park gateway. Asheville has a pleasant climate and plenty to do in an attractive, mostly wooded setting. There's a wide range of properties and locations -- from log cabins and condos to planned communities and ski resort properties -- within a 30-mile radius. Asheville is farther from main urban areas than some vacation spots, but has good air and road access.

Brunswick, Georgia
The town of Brunswick itself has plenty of historic interest, but the so-called "Golden Isles," the barrier island areas of St. Simons Island and Jekyll Island, are rapidly coming into their own as destinations. Some parts are quite upscale with multimillion dollar homes and fancy shopping districts. Brunswick is about 80 miles north of Jacksonville, Fla. and lies in a zone relatively immune from hurricanes (so far).

Lincoln City, Oregon
Southwest of Portland, this area features lush, rugged coastal scenery and a series of classic, mostly unspoiled coastal towns along U.S. 101. The area is dotted with state parks and beaches. There's plenty of housing along the coast, and it attracts an educated population from other West Coast cities.

Freeport, Maine
Made famous by L.L. Bean, this cute town just off the shore and just north of Portland -- and Boston -- has a lot to offer besides shopping. Nearby areas include Yarmouth and the more well-known Kennebunkport. You can get there cheaply by flying Southwest to Manchester, N.H. (Freeport is a two-hour drive from Manchester.) Seafood, anyone?

Fairhope, Alabama
This artsy and somewhat eclectic town sits just east of Mobile Bay, adjacent to Alabama Gulf Shore beach areas. Referred to locally as "Carmel-by-the-Bay," Fairhope's waterfront and town features are reminiscent of its more famous Central California namesake.

Galveston Island, Texas
For years a resort area and seaport, this long barrier island just south of Houston is on the upswing with new developments for all price ranges. Known as the "Lone Star equivalent of the Hamptons," the area attracts vacation home buyers from Houston as well as the East Coast. The antebellum downtown area is interesting and fun and there are miles of beaches.

Granby, Colorado
About 90 miles northwest of Denver, Granby sits at a major crossroads and gateway to a vast mountain area, including the ski and mountain resort Winter Park and Rocky Mountain National Park, located within 20 miles. Granby itself is an old railroad town featuring new residential and resort areas and two new golf course communities. Its median home price is $275K -- $200K below nearby Winter Park.

Heber City, Utah
Utah's "Four-Season Playground" is a more moderate alternative to the tony Park City 20 miles away. Heber City is located in a pleasant valley between the Wasatch and Uinta Mountains, 50 miles southeast of Salt Lake City and near the site of the 2006 Winter Olympics and Robert Redford's Sundance development. It's starting to be "found" and prices are rising, but it's still more reasonable than nearby areas.

Lake Geneva, Wisconsin
Seventy-five miles northwest of Chicago, this area is known as "The Hamptons of the Midwest" (notice a recurring theme?), attracting affluent city goers from Chicago and Milwaukee. The large and attractive Lake Geneva reminded the area's founders of the eponymous upstate New York town, situated on Lake Seneca. Vacation home choices lie near the town of Lake Geneva or in smaller enclaves surrounding the lake. Proximity to Chicago, Madison and Milwaukee brings a steady stream of visitors.

Saugatuck, Michigan
Numerous art galleries, a pleasant small town and miles of sandy beaches and dunes along Lake Michigan bring the nickname "Art Coast of Michigan." It's about 140 miles northeast of Chicago and close to the Dutch-settled agricultural region near Holland and Grand Rapids. You'll find plenty to do and attractive cottages starting at under $200,000.

Financing Your Vacation Home Plans

noreply@blogger.com (Stacy Nelson) — Tue, 25 Sep 2007 19:55:00 +0000

Building your vacation home plans? Every step of the process can be a new challenge. Most importantly, you really need to get pre-qualified for a mortgage from day one.

Whether building a new second home or buying an existing home, this first step is the same. By contacting a lender and providing them with some basic information regarding your debt, income and assets, you can find out the size of mortgage for which you are likely to qualify. Then, before that first shovel of earth is turned, you should make sure you get final mortgage pre-approval. This involves filling out a mortgage application and supplying a lender with the necessary documentation to check your financial background and credit rating so you will know exactly how much you can afford to spend.

I highly recommend finding a lender who is a construction loan specialist, preferably someone who has built their own home before. We were fortunate enough to have friends who had built their own home in the mortgage industry. I cannot tell you how much time and effort we saved by having a specialist on our side.

Don't just go down to the local bank and pick up a construction loan without asking if there is someone who specializes in construction loans. These loans don't go live with payments until your home is built so the terms are critical.

Your first guess at what your home is going to cost you is rarely the actual final cost. Be aware that you can add thousands of dollars to the base price of a home very quickly if you get carried away upgrading the standard flooring, cabinetry or lighting. It’s important to know exactly how much you can afford and to budget accordingly. This is a vacation home so decide what you really need verses what you really want.

How does that parlay into your financing? Simple, an experienced home builder won't just give you the cost of the home on your loan but will add a little pillow for those inevitable overages. That faucet you had to have didn't cost much more but every little bit does effect the overall budget and the last thing you want is to have to come up with more cash at the 11th hour.

Make sure you have access to cash up front otherwise there are some trades that just won't work for you.

Also, be prepared for delays. No matter what time frame a builder gives you, there is always the possibility of delays. Inclement weather, shortages of supplies and labor problems can all factor into delaying the completion of your home. Be aware of this going into the building process and be prepared to be somewhat flexible. Make sure that your loan doesn't start maturing before your home is built.

It is critical when building your vacation home plans that your financing be in order first so you can truly start enjoying your trips from day one.

Vacation Home Plans: What to Know Before You Buy a Lot

noreply@blogger.com (Stacy Nelson) — Thu, 20 Sep 2007 12:33:00 +0000

If you are thinking of building your vacation home plans on a beautiful lot that you are still in the market for, you'd better read these 13 tips before you commit.

#1: Don’t Build on Fill:

Your foundation needs to rest on solid, undisturbed ground. It can take hundreds of years for ground to settle. Sometimes, a steep ravine may have been filled in and/or the land may have previously been a dump.

If you cannot dig down far enough to rest the footings on solid and undisturbed ground, then you run the risk of having the ground settle after you home is built. This can cause severe wall cracks or structural failures.

A shifting foundation can also cause doors and windows to stick.

Avoid building on top of fill dirt. If you need to build on fill, use compacted gravel for fill rather than dirt. Compacted gravel will settle less than dirt.

It may be possible to build on soft ground if you take extra precautions such as grade beams to make sure your foundation footings are supported by solid ground. If you fail to do this then you may experience major problems that will be very expensive to correct.

Foundation problems may not show up for several years (long after the builder’s warranty has expired).

#2: Don't Build on Bedrock:

If the land has bedrock close to the surface of the soil it can be expensive to dig a hole for a basement. If this may be a concern, look at nearby foundations to determine how far down the bedrock is or ask neighbours who have already built if they had problems with stone.

You can also dig a few test holes to see if shallow bedrock will interfere with construction. Modern equipment has made it easier to dig through bedrock so this might not be as big of concern if the proper equipment is available in your area.

In some areas bedrock is not stable because of expansive soil. The term “heaving bedrock” means that the bedrock may shift and move and this type of soil is more difficult to build on.

#3: Avoid Clay:

The type of soil found on a site can also affect it’s suitability for construction. The soil will also affect how well you can grow trees and plants on the property. It’s best to avoid building on clay.

If you do build in clay, you may need stronger and larger footings to prevent foundation cracks. Clay soil can make it difficult to have a dry basement.

Also clay soil can make it harder to grow things. It’s a good idea to look at the street and surrounding buildings in the area you are thinking about building. If the street is cracking or sinking or other buildings have cracked walls then this could indicate the soil is unstable.

Some types of clay will shrink when dry and expand when it’s wet. This type of ground is called expansive soil. Expansive soil can be found in most parts of Canada. Extra care must be taken when building on expansive soil because there is greater risk to foundation damage.

#4: Make Sure You Ask For a Survey?

A survey will show you where the actual boundaries of your property are. A survey can also point out possible problems with the land (you encroaching on your neighbour’s property, or the other way around).

Land usually has stakes or markers showing where the property boundaries are. However these markers are sometimes incorrect because they were moved or improperly placed. A survey will give you an accurate idea of your property’s boundaries.

Before spending money on a survey, you may want to ask the landowner if they have a survey. If a certified surveyor has already done a survey then it may suit your needs. If they don’t have a survey it may be reasonable to request they pay for a survey. After all, how can you pay for a land to build your custom home, if you don’t know what you are buying?

#5: Make Sure You Have a Builder Look at the Lot Before You Buy...

Your builder can give you a good idea if the lot is suitable for the type of home you want. In particular, a builder can tell you if much fill dirt will be needed or if there may be drainage problems with the land. He will assist you with building your custom home.

#6: Perc Test - Why is it So Important?

A Percolation Test test involves digging a hole and filling it with water. This is done to determine how well water drains through the soil. If you need a septic tank, a perc test can tell you how suitable the soil is for this purpose.

If the ground isn’t suitable for a septic tank you may need to dig up the septic filed area and replace the ground. This will add thousands to building the septic system.

#7: What is Useable Area and How Much is Enough?

When evaluating a piece of land look at its’ useable area. If you have a 5-acre lot but it only has 1/2 an acre that is useable (due to drainage, topography, etc.) then the value of the lot may be similar to what a 1/2-acre lot sells for. Don’t overpay for a larger lot. Look at how useable the land is when determining a price.

#8 Developed Land vs Undeveloped...

When looking at land, also consider how much development is needed to make the land suitable to build on. Developed land usually costs more than undeveloped land.

A land developer typically adds things such as streets, city sewer, street sewers, city water, streetlights, phone lines, and electric lines. You may be able to buy undeveloped land at a lower cost, but after developing the land it may end up costing more than what it would have cost to buy land that was already developed.

#9: Watch Out For Water Tables...

It is common to have underground water. It’s a good idea to dig a test pit to see if the underground water will interfere with having a basement. The water table (the depth of underground water) varies during different times of the year and the water table is usually highest during the springtime. For this reason, it is best to do any testing of the water level in the spring.

The water table can determine the type of foundation you use. You might not be able to have a basement if your site has a high water table.

#10: Slope Is Only Good For Skiing...

If the land slopes, try to determine how big of a height difference occurs in the land from one side of the home to the other side. If the slope is right, the lot may be ideal for a walkout basement.

If the slope is too drastic, you may have to haul in a lot of fill and do extensive grading (which can get expensive). A slope can be deceiving – sometimes a gentle slope may actually be too much of a slope; especially if you have a wide house or want to build your home far away from the street.

You can use string, stakes, and a level to help you determine the elevation change of a slope. A more accurate way to measure slopes is to use an optical level and transit. The tools to use are tripods and viewfinders to measure slopes and you can usually rent them from a local rental shop.

It is best to have a spot to build on that is higher than surrounding parts of the lot. If you build on a lower spot then water is more likely to drain towards the home. If building on a slope you should make sure the ground is stable. If the ground is less stable additional work and expense may be needed to better anchor the home to the ground.

If the lot’s slope will affect your driveway then it may be more difficult to use the driveway when it has snow or ice on it. Also a driveway that has a quick change in its slope can cause the car bottom to drag on the pavement.
When building up slopes, use fill dirt rather than topsoil. Topsoil should only be the last level. Topsoil is more likely to erode or wash away than fill dirt.

#11: Wooded Lots - Does a Tree Make a Sound?

Wooded lots with nice trees can increase the value of your property. It will also increase the construction costs because you will need to clear away some trees before you start building. A lot with brush or unattractive trees may be worth less than a lot with no trees (because of the cost of removing the brush).

When looking at a wooded lot, try to visualize where the home, driveways, septic tank, pool, and anything else will be. If the lot slopes, determine where grading and fill dirt will be needed (you will probably lose trees in those areas). Some trees may need to be removed to allow large equipment to access your property when building the home.

#12: Utility Hookups - Surprise ... Surprise...

If you are thinking about buying land before utilities have been run to the land, be sure you know where the utilities are going to be placed. If you don’t know this, you might be in for some surprises.

For example, a fire hydrant might be put in the place you were planning to run your driveway, or you might have an unattractive electric box or pole in front of your home. Utilities can also impact the grade of your lot.
The cost of your utility hook-ups is directly proportional to the length of your driveway.

#13: House Plans Suitable for Lot or Lot Suitable to House Plans?

Before buying a lot, you may want to see if you can find a house plan that is suitable for the lot. First determine the amount of buildable area you have on the lot. Keep in mind that setbacks and easements will reduce the amount of space that you can use when building a home.

Make sure the lot has the characteristics suitable to the type of home you want to build. For example if you want a side garage or L-shaped garage then you will probably need a wider lot or a corner lot.

Ranch style homes need a larger lot than a 2 story home. Try to make the house fit the lot rather than changing the lot to fit the house. It can be very expensive to modify a lot if it is not suitable for the type of home you want to build.

For a great selection of vacation home plans, go to The COOL house plans company. I have found that their selection is the most varied and can be sorted by lot style as well as home preference.

This article came from the Ontario Home Builder. Thanks for such great quality advice!

7 Tips for Building Your Vacation Home Plans

noreply@blogger.com (Stacy Nelson) — Wed, 22 Aug 2007 16:49:00 +0000

This is it. You've found your dream location. Perhaps you are still looking for your vacation home plans, the blueprints to bring your vision to life. You envision long weekends, coffee on the porch, water skiing in the lake, snow skiing down the hill, walks on the beach, your own kitchen to have breakfast in. Whatever your goals are for this home, it's slowly about to become reality.

Oh my gosh. You're going to build a home. That's a huge undertaking! It's exciting and scary. Don't worry, you can do this. Take a deep breath and follow some 'been there, done that' advice.

Tip #1 Find out if there are any special reports that need to be done before you hire anyone, preferably before you buy the land. Do you need an environmental report? Is there some kind of obscure bug residing in the area that might delay or prohibit your building process? Even if there are homes next door to your lot, check. The county or city where you are building will have all of the data. This is a very critical part of the building process. I have friends who have had to spend thousands of dollars and several years just to certify that a moth that breeds there will not be damaged. Some vacation home eh?

Tip #2 Get to know your clerks. The permitting process can be tedious. It is very important that you never yell or berate anyone in the system of approving your permits to build. Don't go into battle. Play nice and you might be better able to get your way. Most clerks are not paid enough to care if your deck gets denied. But a clerk who likes you might be more inclined to approve quicker. Building a home is all about building a strong network of fans willing to assist you on your way.

Tip #3 Buy a home plan that is designed for your specific topography. If the land is flat as far as your eye can see, don't build a Colorado style home with a walk-out basement. It won't work no matter how much you love the floor plan. There are plenty of sites that will allow you to input your land specifications so you can pick the right style for your lot.

Tip #4 Find a good budget and then add about $25,000+ for overages depending on the size of your project. Issues that cost extra money do invariably come up so it's good to be prepared. And if they don't you've just come in under budget. Congratulations to you as the minority of home builders.

Tip #5 Find a contractor who likes technology. Little things like being able to email you a digital photo of their daily building progress are a huge help when you are not nearby. See if they can text message you questions instead of calling or emailing (and then add text messaging to your phone). It's not just for teenagers and is the least stressful way of communicating available.

Tip #6 Screen your contractor. Most towns also have some sort of Chamber of Commerce who will give you recommendations of good local contractors. It's also important to check the Better Business Bureau for negative reports but don't assume they are a good contractor just because they are listed there as good - most people don't know that those listings are paid for. Just look for negative marks and avoid that contractor.

Tip #7 Schedule time to work on home issues. Decisions have to be made along the way. Emergencies will most likely come up. Don't automatically rush out to the site. Do as much as you can from home via phone or internet. Find blocks of time each week or, as you get further into the build, each day, to be able to handle yesterday's list of things that need to be done. If you need to make a decision, put it on the daily list and address it during your allotted time slot otherwise you will be running around in circles.

Now take a deep breath and start shopping for your vacation home plans. You can make it through this process if you understand that the vacation will not start until the work is done. Then you have a lifetime of memories to make at your new vacation home.

Vacation Home Plans

noreply@blogger.com (Stacy Nelson) — Wed, 22 Aug 2007 16:45:00 +0000

So you have a dream to build your own vacation home? Vacation home plans aren't always a breeze to build, especially when you don't live down the street to oversee every detail. Trust us. I remember taking the four hour trip a couple times per week when we first started our journey. It certainly did not feel like a vacation to us. It felt like a full time job.

But we did it - and learned a lot along the way. With a few of our tips to help you stay organized, you can be sitting in your own cabin or beach home in no time at all.