Promoting economic development and empowerment among marginalized communities is essential for creating a more inclusive and equitable society. Recognizing the unique challenges faced by Black youth, as well as their potential in shaping their communities, The Coleture Real Estate Brokerage is curating a summer intensive that will begin in the summer of 2024. This program is being launched specifically aimed at fostering wealth creation, financial and credit literacy and empowerment within this demographic. This article highlights the significance and impact of such initiatives and explores the key components of The Coleture of Feedforward, which is customized for young Black adults.
Nurturing Entrepreneurial Skills
The Coleture of Feedforward program places a strong emphasis on cultivating entrepreneurial skills among the young participants, affectionately referred to as The Coleture Kids. Through tailored workshops, mentoring, and practical activities, the initiative equips youth with the knowledge and tools necessary to develop innovative business ideas and navigate the entrepreneurial landscape. By fostering an entrepreneurial mindset, the program encourages the youth to overcome barriers, create economic opportunities, and contribute to the growth of their respective communities.
Strengthening Financial Literacy
In addition to an entrepreneurial mindset, a crucial aspect of economic development is building financial literacy amongst marginalized young people. The Coleture of Feedforward incorporates modules specifically designed to address the unique financial challenges faced by this demographic. Participants will learn about personal finance– managing money and making informed financial decisions, wealth-building strategies, particularly via real estate, and financial planning. By instilling Black youth with financial knowledge, the program enables them to make wise economic decisions, break cycles of poverty, build generational wealth and contribute to overall community prosperity.
Promoting Representation and Diversity
One of the most important ingredients in The Coleture of Feedforward is representation. Representation matters, and the summer program actively promotes representation and diversity. The Coleture Kids are exposed to successful Black entrepreneurs, industry professionals, and role models who share their experiences and insights. This exposure helps break down barriers and inspires Black youth to pursue careers in various industries, fostering a more diverse and inclusive economic landscape.
Encouraging Community Investment
The Coleture of Feedforward program emphasizes the importance of community investment, engagement and social responsibility. Participants are encouraged to identify and address local challenges through community projects and initiatives. As a unit, we will select one project to commence during our session. By working together to tackle issues the participants often face, The Coleture Kids will develop a sense of ownership and pride in their communities. This fosters a spirit of civic responsibility and promotes the idea that economic development goes hand-in-hand with community development.
Networking and Mentorship Opportunities
A final component to the intensive is the acknowledgement that networking and mentorship play vital roles in success. The Coleture of Feedforward will facilitate networking and mentoring opportunities by connecting participants with experienced professionals and entrepreneurs. Mentors provide guidance, support, and advice, helping youth navigate their educational and professional paths. These connections will enable participants to build valuable relationships, gain insights, and access resources that contribute to their long-term economic growth and success.
The Coleture of Feedforward is a Crucial Step in Economic Growth
All in all, the launch of a summer economic development program specifically tailored for Black youth represents a crucial step towards empowering and uplifting this demographic. By equipping participants with entrepreneurial skills, financial literacy, diverse role models, community investment opportunities, and meaningful mentorship connections, this program lays the foundation for Black youth to thrive economically and create lasting change. As The Coleture Kids embark on their journeys, armed with knowledge, support, and resources, including a brand new computer, they will have the potential to drive economic development, break down barriers, be and inspire future generations of Black entrepreneurs and leaders.
More information and details about the program will be available in the coming months.
Finally, it is important to note that a portion of all real estate sales proceeds will go towards The Coleture of Feedforward Summer Intensive. If you have direct knowledge of anyone who can benefit from this program or you would like to be involved with this project, please send The Coleture Real Estate Brokerage an email at info@tcreb.com. Thank you.
This article originally appeared on www.TCREB.com.
Business Building in 2021. My, how things have changed. Or maybe they haven’t. Maybe 2020 simply aroused sky-high motivation levels in many of us. Honestly, I’m not even sure if 2020 was the motivating factor. For me, it was just my time. I set a goal to be more intentional this year, and that is absolutely what I have been doing. Though there is still work to be done, I have made strides that even I did not see coming. When I think about building a business, I am thinking about longevity and generational wealth. Those are the thoughts that keep me going into the “beyond.”
Everyone is not meant to be a boss.
Be honest with yourself. Are you sure you want to be a business owner? It sounds very cool to say that you own a company, but the reality is, everyone cannot be a boss. Some do not possess the skill or knowhow, others do not have the interest. All of that is okay. But everyone has the capacity to be better equipped and maximize their earning potential, regardless of their respective fields or professions. For the employee, your leverage is your knowledge. Don’t you want to earn more?
Most people tell you to start your own business, but few rarely tell you how.
I always knew that owning my own businesses was the path for me. The thought of asking for permission to not come to work or have to explain why I need to leave early makes me cringe. I crave freedom, but freedom comes at its own cost. Just call me Trial & Error. When I first got into real estate, for example, I had no clue how to actually get started. Real estate school does nothing to prepare you to run a real estate business. Real estate school is for the real estate test. Period.
When business building, one of the first things I do is take to the internet.
Reading is fundamental. I read– and I don’t just read internet articles, I also buy books. But you also have to be able to comprehend what it is you are reading. Sometimes, that can be challenging, because there is an automatic learning curve when venturing into new territory.
During my discovery phase, I research, and look into other people and companies doing similar work. My goal here is to see what they are doing, what I like/dislike about their business models, while identifying potential competitors. (This also helps me decide if this is a business I sincerely want to get into). In real estate, it’s like doing market research and preparing a comparative analysis.
Now, I’m not suggesting you do things in the exact same manner that I have. In fact, that is why we are here. “There is more than one way to skin a cat.” I am pointing out to you that I have made countless mistakes, many that cost me a pretty penny. For example–and I don’t know about you, but I frequently hear people telling others to “get their LLC.” Do you know how many LLCs exist and that’s it? Who has money to give away to the government?
Rarely do I hear those same people including in those conversations the steps necessary to correctly establish your business entity. What’s the real difference between an S-corp and a C-corp? It’s kind of like having a wedding versus having a marriage. The wedding is what everyone is telling you to have. And although weddings are nice, your wedding will not sustain your marriage.
Stay focused on Business Building in 2021 and beyond.
It can be easy to get discouraged when you are first starting out. You see some people thriving at something you want to do, and you do not even really know where to start. Stay focused.
I know a lot of people who are business owners. When you think about it, who doesn’t? However, when starting my first company, I felt there were few people I could turn to for guidance. But that never stopped me from trying. I got snippets of information here and there, and I put it all to good use. Although some detail was left out of shared information, I was still better off than I was when I didn’t know anything. Stay focused.
No one is going to give you the entire blueprint for your business for free.
Unless you have been living under a rock with absolutely no cell phone reception whatsoever, I’m sure you have heard of the latest wave, the app called Club House. I have been on Club House for a little while now, and I must say, there is ample opportunity on there. Many people have been able to monetize and scale their businesses, others have been able to connect with people who can point them in the right direction– I mean, it is truly something that can help catapult your profession or business, if used properly.
The greatest thing about Club House is that there are a ton of people on there providing you with information. Some are truthful, honest, and really wanting to create a pathway for others. Some are imposters, there to feed egos and grow their Instagram followings. Like anything else on the internet, all information isn’t good information. Be mindful of that and choose your actions wisely. Still, Club House is a wonderful starting point because you can find loads of people providing value FOR FREE.
Create the framework for your business right the first time.
When it comes to owning a business, investing in yourself is without question. Time, knowledge, and money are the basic ingredients to get your business up and running. If you are just getting started, figuring out exactly what you need to do to get started successfully can be a daunting task. While I struggled to figure things out for myself, I took notes. It made me realize that I should document some of my experiences, so that I may have that knowledge to pass on.
To that end, I am currently developing a course to provide you with a step-by-step guide for the successful foundation in which to build your business. The Business Building in 2022 and Beyond Course will clearly lay out how to start your business from A-Z. Though some of the startup information will directly correlate to Louisiana laws and customs, I recommend that you check directly with your secretary of state’s office to ensure you abide by your local practices. Still, the information included will assist you with any business anywhere in the US.
No matter what direction you choose, understand that mistakes will happen. The goal is to minimize how costly those mistakes will be. Learn some of my Dos and Don’ts in detail. In the Business Building in 2022 and Beyond Course, we will discuss business structures/entities, tax deferment opportunities, establishing business credit, real estate (of course), empowerment, and more. The course will be rolling out next year, so be sure to subscribe to and follow The Coleture, so you will be amongst the first to receive the anticipated launch date.
We are officially in the fourth quarter of the fiscal year. Where are you with your goal implementation? Drop us a comment below.
Image I snapped while evacuating for Hurricane Ida on August 28, 2021.
If you live in the Southeastern United States, during the months of June through November, you can expect to hear a number of reports of “activity” developing in the tropics. Hurricane season is yearly, so those newscasts are expected. Being from the South, you begin to even find interest in learning the storm names chosen each year. Suddenly, a major hurricane develops in the Caribbean and appears to be heading for a US impact. Residents of the area begin to pay attention a few days out from the anticipated landfall date. Those watching from afar begin with their comments: It’s hurricane season. Why don’t they just leave?
According to the Merriam-Webster Dictionary, a hurricane is categorized “as a tropical cyclone with winds of 74 miles (119 kilometers) per hour or greater that is usually accompanied by rain, thunder, and lightning, and that sometimes moves into temperate latitudes.” Before becoming a hurricane, the storm is a tropical storm, which has maximum sustained winds of 39mph to 73mph. And even before becoming a tropical storm, it is a tropical depression.
If you followed any of the recent coverage of Hurricane Ida, you probably heard meteorologists repeating that the areas to the East, or right, of the storm were in the most imminent danger. Hurricane winds rotate counterclockwise in the Northern Hemisphere, and that’s where the speed and strength of the winds are. Therefore, it is the most dangerous side of the storm.
What do the categories really mean?
A hurricane’s strength is grouped into five categories. The rating is based on the hurricane’s maximum sustained winds, with the higher categories showing the greatest potential for property damage. The National Hurricane Center explains:
Category Sustained Winds Types of Potential Wind Damage
1
74-95 mph 64-82 kt 119-153 km/h
Very dangerous winds will produce some damage: Well-constructed frame homes could have damage to roof, shingles, vinyl siding and gutters. Large branches of trees will snap and shallowly rooted trees may be toppled. Extensive damage to power lines and poles likely will result in power outages that could last a few to several days.
2
96-110 mph 83-95 kt 154-177 km/h
Extremely dangerous winds will cause extensive damage: Well-constructed frame homes could sustain major roof and siding damage. Many shallowly rooted trees will be snapped or uprooted and block numerous roads. Near-total power loss is expected with outages that could last from several days to weeks.
3 (major hurricane)
111-129 mph 96-112 kt 178-208 km/h
Devastating damage will occur: Well-built framed homes may incur major damage or removal of roof decking and gable ends. Many trees will be snapped or uprooted, blocking numerous roads. Electricity and water will be unavailable for several days to weeks after the storm passes.
4 (major hurricane)
130-156 mph 113-136 kt 209-251 km/h
Catastrophic damage will occur: Well-built framed homes can sustain severe damage with loss of most of the roof structure and/or some exterior walls. Most trees will be snapped or uprooted and power poles downed. Fallen trees and power poles will isolate residential areas. Power outages will last weeks to possibly months. Most of the area will be uninhabitable for weeks or months.
5 (major hurricane)
157 mph or higher 137 kt or higher 252 km/h or higher
Catastrophic damage will occur: A high percentage of framed homes will be destroyed, with total roof failure and wall collapse. Fallen trees and power poles will isolate residential areas. Power outages will last for weeks to possibly months. Most of the area will be uninhabitable for weeks or months.
Excerpt from the National Hurricane Center and National Pacific Hurricane Center
Have you ever experienced a hurricane first-hand?
Image captured on my cell phone a few days after Hurricane Ida in Metairie, Louisiana.
When a hurricane makes landfall, you really do not know how much damage it will cause. Even a category 1 hurricane can do major damage– after all, it is still a hurricane. The sound of the winds gusting remind you of a freight train that happens to be in your living room. You hear the debris banging and crashing about outside. The rain alone can be catastrophic, causing extreme flooding. And let’s not even mention the possible tornadoes that can happen simultaneously.
In short, hurricanes are not fun. They are loud, destructive, and deadly. But if one had to choose a region to live based off of its typical natural disaster, I would stick with hurricanes. Unlike earthquakes or tsunamis, you may not have a lot of time, but you do have some warning that a hurricane is out there and that it is coming.
The choices are to stay home and shelter in place, or plan to leave and find somewhere to go. Both options cost money, but evacuations cost more. Think of planning for a vacation. Most people have to save money for trips months in advance, at the least. Alerts that a hurricane is headed in your direction is sent out maybe 3 days before it is expected to make landfall. How many people are able to just drop everything and spend “vacation” money each time a hurricane is announced?
It’s hurricane season. You can’t leave for every named-storm.
Each year, multiple hurricanes form. There are several forecasts featuring various hurricane tracking models and their hypotheses. The reality is, no one knows exactly what direction a hurricane will travel. As a result, people cannot evacuate for every named storm. Aside from being unable to afford to leave, some may be too ill. (And let’s not forget the rapidly spreading and mutating Coronavirus adding to that stress). Naturally, some people have to work during hurricanes, while some will want to stay to protect their homes and businesses from looters, or maybe even address certain problems that arise during the storm.
For example, if a window breaks during a hurricane, you may be able to board the window up from inside your home. Conversely, if you are not home when something like that occurs, the damage will only worsen. And depending on the amount of time you are gone in the storm’s aftermath, you leave your home open to critters and criminals alike.
Personally, I rarely leave for hurricanes. There are a number of factors to consider when making the decision to flee or ride out the storm. In order for me to pack up and go, one factor I consider is what category the hurricane is expected to reach by landfall. A category 3 hurricane is not necessarily one I would leave for. Now, if we are talking about a category 4 or 5, I’m likely getting the [insert expletive of your choice] out of Dodge.
What items should I have when sheltering in place?
Abruptly, (or so it seems), the storm has entered the Gulf. You have officially run out of time. The decision is due and whatever you decide, you must stick with. For me, I always prepare as if I am staying. You need to do and have almost all the same things whether you choose to leave or stay. Home preparations are always at the top of my agenda.
First, I gather all of my important documents– most recent mortgage payment receipt, homeowner and flood insurance policies, birth certificates for the entire household, and, at this point, COVID-19 vaccination records for those of us who have them. Secondly, I scan and upload copies to the cloud or some place where I can easily access them remotely. I even take screenshots. (Renters: Be sure you are making copies of your lease, renter’s insurance, etc.). Then, I place the originals in resealable storage bags.
Next, I head outside and pick up all yard toys and/or patio furniture. (I am saying “I,” but truthfully, my husband typically takes care of this part. So I will just say we instead, since we are one). Some items we place in extremely large garbage bags. We stack the chairs and tables, and then we tie them down all together to a post on the house with rope.
Note: I also do laundry during this time to ensure I have as many clean items as possible.
By this time, you should have already gassed up, but if you have not, head to the gas station. Even if you plan to stay, you still want to make sure you have a full tank of gas, in case you need to leave immediately following the storm. If you have gas cans, fill those up, too. Expect there to be long lines.
From there, plan your trip to the grocery store. You want to get canned foods and fruits that you can eat that do not require refrigeration. If you do choose to get some cold food items, purchase just enough that you can eat within a day or two. If the power goes out, you have to plan for that to be an extended period, which means you could be throwing away a lot of food. While you’re there, get some cash back. If the power is out, anything that you try to purchase after the storm will need to be paid for in cash.
As for beverages, have at least one case of bottled water per person, as a general rule of thumb. I would also consider grabbing some sports drinks with electrolytes, such as Gatorades or Powerades. Basically, prepare like you will be stuck at home with no electricity for a few days, at least.
A few things you should always remember, and in fact, keep them as staple items in your home.
After taking care of your food and beverage needs, the next thing on your agenda should be to tackle these other survival essentials. It is wise to regularly keep these items in your home. You will need batteries, flashlights, candles, matches, and lighters. Battery-operated fans could be useful, as well as bandages, scissors, and tape. A first aid kit could have some of those items already included, so make sure you have one handy. Purchasing a generator is a great investment. Please be sure to understand your responsibilities when using a generator, as improper use can be fatal. Check out this article for more tips on generator safety here.
I am evacuating. What should I take with me?
Patience and money. City leaders have warned you that this is your last chance to head out before you must stay inside. Having decided to leave, you are now faced with trying to figure out what you should actually take with you. Space will be limited as long as you are not traveling alone. My thoughts? Pack everything you purchased in preparation to stay. Minus the flashlights, candles, and fans, if you are staying away from home, you will still need clothes, medication, food items, etc. Even if you do not consume all your food/beverages while away, you want to be sure that you have some food items for your return home. Also, be sure to grab those most important valuables that will fit.
Costco in New Orleans on September 7, 2021, 9 days after Hurricane Ida hammered through Louisiana.
It’s hurricane season: why don’t they just leave?
It is unreasonable to think every single person currently in a city CAN evacuate for an approaching storm. The evacuation process itself is daunting. For instance, I left just ahead of Hurricane Ida. It took me 9.5 hours to reach Mobile, Alabama, which is traditionally a 2 hour drive. 9.5 HOURS! Not to mention I traveled with young children. It was almost torture!
Having to quickly leave your home and stay gone for an undetermined amount of time is already less than ideal. It’s great if you have family or friends who can take you in, but lots of people have to pay for hotels. And believe me, you are not paying discounted rates. For those who are fortunate enough to stay with others, you are now having to eat out multiple times everyday and/or buy meals and other items for that household, which add to your expenses. You cannot comfortably stay in someone’s home for an extended period and not pay for anything.
When it was safe enough for me to return home, I had so much anxiety about leaving because I could not withstand sitting on the interstate another 9+ hours for a 2 hour drive. That experience alone makes me not want to evacuate again. Adding to that stress is not knowing what you are going home to. And let’s not talk about all the times in the past where we evacuated for a storm and it either it fizzled out prior to the projected landfall or it went in a completely different direction. There are no insurance claims, reimbursements, or otherwise. Now, all the monies spent on evacuation, were for absolutely nothing.
What if there were an alternative option to staying home or evacuating? What if you could do a little of both?
In closing, what if local governments were to establish nice, clean, and safe public structures that served as storm shelters for residents? Richard Campanella brought up an array of valid points in his article, “To solve its hurricane evacuation dilemma, perhaps New Orleans should try this.” Creating government-funded “hurricane hotels” (I like the way that sounds because “shelter” tends to lean towards a more negative connotation) seems like it could be a future viable possibility. City infrastructures definitely need to be addressed, and I am looking forward to how the federal government’s plan will materialize.
What are your thoughts on hurricane evacuations? Should everyone try to leave all the time? What would you suggest? Leave a word in the comments.
Please feel free to download and share my personal hurricane preparedness list created.
A baecation, solocation, familycation, any type of vacation, except a staycation is what I need. The thought of going somewhere just seems so whimsical! No matter what the requirements, mask mandates, no sandals, all plaid only, I am willing to abide by them. I can.not.take.this.anymore. It’s time to look at someone else’s four walls. Time to Travel.
My husband and I had reached our breaking points! He has been blessed to not miss any work during the pandemic, but the downside to that is that he needed a break. Work came to a screeching halt at the start of the pandemic for me, but that soon changed… as I was first and foremost a virtual school teacher (still not exactly sure how that happened). We had been talking about going somewhere for a while. We glanced at a flight or two, but nothing ever came of it. After sending the kids to their grandparents for Spring Break, it was like the light bulb went off. As soon as they came back, we booked last minute flights to San Juan, made appointments to get our COVID-19 vaccinations, got tested a few days before takeoff, and packed our bags the night before. We were out.
What vacation without the kids looks like, a.k.a. Baecation.
Visions of New Orleans-style Phase 1 flashed before my eyes
Soon after landing, we learned just how serious Puerto Rico is about minimizing the continued spread of the Coronavirus. 10pm curfews. Police at almost every corner reminding you to put on your mask. Hotel security walking around doing mask checks. Every single place you walked inside of requires temperature checks, while the lines are seriously socially distanced and long.
I can understand it all, especially since so many people are not taking it seriously and have been instrumental in the continued spread of the virus, but my goodness, restaurants shutting down at 8pm, so the employees, too, can be home by 10pm? I think these city officials believe COVID has operational hours. What’s the difference in 10am and 10pm?
Had I just taken a moment to reach out to a travel agent, perhaps this information would have already been made known to me. Perhaps, the hubs and I could have planned accordingly, by either choosing another destination, or simply being prepared for the early closures. But we were a day late, a dollar short, and very hungry.
Tap in to those you know.
Considering that I’m usually the person planning the trips in my family, and that can be time consuming, delegation sounds like perfection! I realized that I actually knew a travel agent who could successfully plan our trips, so I no longer had to.
A well-traveled concierge, Maria Hardin of Hardin Travels has been in the travel business for the past four years. She is based out of Atlanta, Georgia, but like me, hails from Mobile, Alabama. In fact, her grandparents were my next door neighbors growing up. Fun fact: Her grandmother was “the candy lady” of my neighborhood. Mrs. Hardin had the BEST snacks! It’s crazy, but I can still remember how her house smelled… Oh, the good ol’ days.
Maria has experience with a number of specialties in travel, including planning couples trips, family vacations, and family reunions. Check her out for your future travel needs, and tell her I sent you.
Still, the trip to Puerto Rico was not a total loss. We actually did maximize our time, and tried to do all that we could with what we had. We ate well (when we ate), had amazing beverages, went sightseeing, and also got some really good shopping in, too… and as a bonus, I was able to make some possible business connections!
Summer is officially here. What are your travel plans? Need some cool ideas, and maybe even an option to pay for your trip in installments, contact Maria Hardin. Let her take the stress out of your planning. Drop a comment below and let us know where you’re headed.
At the time of this publishing. Mrs. Hardin has passed away. Sending peace, love, and understanding to all of her loved ones. May God heal your broken hearts.
Real Estate will always be around. I don’t care how many times the market “crashes,” people still have to have somewhere to live, and once a lot is purchased, it’s purchased.
Every business industry is about supply and demand. There must be a demand for your supply, otherwise, you have no business. The Real Estate Industry is no different. Real Estate happens to be one thing that can run out because there is only so much land. That makes the supply of land inherently limited. By definition, it would seem that a buyer is always in a seller’s market, but that is not the case. You must first understand a few basic things before you can truly grasp what it means to be purchasing property in a seller’s market.
Successfully purchasing property in a seller’s market requires that you understand what a seller’s market is.
Generally speaking, there are three types of real estate markets– a Buyer’s Market, a Seller’s Market, and a Balanced Market. A balanced market indicates that buyers and sellers are on equal playing field, while a buyer’s market tends to mean that there are more homes available for sale than there are buyers. If a seller wants to move a property, he has to make his listing (and pricing) the most attractive. Conversely, a market becomes known as a seller’s market when the supply of available homes is less than the number of active buyers.
You may be seeing that a seller’s market is the scenario for most of the country right now, but you must remember that Real Estate is very local. There can be national trends, but the New Orleans market is very different from the Atlanta market, and the Atlanta market is very different, than say, the Phoenix market. To compete in a seller’s market as a purchaser, you must first be ready, willing, and able to buy.
How did we get here?
For those who are curious as to how we arrived in our current seller’s market, there are several factors in play. Most reasons can be attributed to effects of the Coronavirus. There has been a decrease in production across all industries, including home building. The attractiveness of super low federal interest rates, and people deciding during the pandemic that they wish to live more comfortable lives have all played major roles. The latter can translate into buying a larger home or a second home to staycation for those with more resources.
Consult your trusted agent
A seller’s market can drive some buyers crazy. The first thing is, trust your agent throughout this process. If you cannot trust or don’t listen to your agent, find another one. I do not think I can stress enough how important this is. Your trusted agent should fight for your best interest. If your agent gives you some recommendations that you are not sure of, ask questions, but be okay with accepting that he or she is the expert in their field. However, if you really do not like what they are saying, I implore you to consider finding and securing another agent to assist with that transaction. Working with a trusted agent is crucial to your success. If you do choose to move on, be sure that you are not contractually obligated to remain with that particular agent.
Offer a heavier deposit
A seller wants to know that you are a serious buyer. If you have the ability to do so, place a larger deposit amount down with your offer. If you could submit your offer with a $5,000 deposit, it is a stronger offer than a $1000 deposit. The seller sees this as a person who really wants to purchase his property.
Skip the Closing Costs
Keep the contingencies to a minimum. Don’t ask for closing costs if you don’t need to. Think about it from this perspective: if a seller has multiple offers all at the same price and with similar terms, and you are the one person making an offer not asking for closing costs, that seller is likely going to choose your offer. There could be someone offering more money than you are, but by them asking for closing costs, the seller may net more profit by accepting your offer. If you can make the purchase without the assistance in closing costs, forgo them.
Purchasing a property with cash
Hands down, the absolute easiest way to buy property is when you’re purchasing a property with cash. You can close as soon as you can close. Two things I recommend are completing the title search and an inspection, just so you can see what all the property needs.
Back in the day, Cash was King. (Now, Credit is).
If you were a cash buyer, it was possible for you to make a lower offer and have it accepted because you were paying cash. In today’s world, that no longer works. The seller receives cash at the end of the sale regardless, so why would she cheat herself out of more money because you have liquid cash? The most appealing feature in an offer is the time in which you are able to close. A typical bank loan purchase will take between 30-45 days. If you are a cash buyer and you’re able to close in 15 days or less, that is an attractive offer.
There is no one size fits all approach in Real Estate.
There are other things that we do take into consideration as agents. Still, you want to make sure that you are ready to do what it takes to purchase your home. Buyer readiness is the most essential thing because you could be searching for years and never pull the trigger. When contacting an agent, be ready. And when you secure an agent you trust, be confident that you can and will purchase the property you desire in seller’s market.
It has taken forever to get to this point. You have been so ready to move, you could taste it. Buying a home was a goal so far in the distance, but once on the path to attaining that goal, the execution seems almost instant. Last you knew, you were under contract, but an entire month has passed. All documents have been signed. You get your keys. You take your pictures for the ‘gram. Suddenly, you realize: You’ve closed on your home. Now What?
There are several important things you must do soon after closing, and depending on what type of seller you have just dealt with, you want to make sure you get a few of these things done right away.
Congratulations! You’ve closed on your home. Now what? Get ready for that new ID pic.
Be Camera Ready
It is quite possible that you may feel slightly overwhelmed right now. There is just so much that you have to do, but you have to start somewhere. The very first thing on your to do list should be to head to the DMV! That’s right. You have to get your new driver’s license or state identification card with your new address. You will need proof of residency, so take your closing documents with you.
Connect your services
Yes. The electricity was on for you to look at the house several times; however, the now former owner, is not going to keep those lights on for you. Contact your local utility company over the phone, and ask them what their requirements are to have the utilities turned on in your name, or to transfer your existing account. This account setup or transfer may be able to be handled entirely over the phone or online.
Next up, contact your local sewerage and water company. Normally, if you are a resident of New Orleans, you would be required to go in-person with the declaration page of your homeowner’s insurance in tow. You would also be required to pay a $100 deposit. However, my suggestion would be to call ahead to confirm the requirements, especially with the existence of the pandemic.
After that, we must tackle one of the more annoying account setups. You know who it is. “We will be there on Tuesday between 8am and 8pm.” *insert eyeroll here* Internet is one of our core services these days. Call ahead to schedule the connection setup for your internet and/or cable services. If your home is new construction, be sure to let the company know that ahead of time. It is possible that the company may not be able to locate the address in their system, and may need to do some additional work for connectivity.
Get Your Homestead Exemption
Contact the Tax Assessor’s office to apply for your Homestead Exemption. A homestead exemption serves multiple purposes, but one of the most important features is the reduction of your property tax liability. The current requirements to apply in Orleans Parish are as follows: To claim a Homestead Exemption, all owners who occupy the property must appear in person at the Assessor’s Office and present the following:
Proof of ownership (Act of Sale or Warranty Deed)
A valid Louisiana Driver’s License or Louisiana State I.D. (address must correspond to property’s address on application)
A current unpaid Entergy bill for the property, with service location and mailing address being the same, showing standard residential usage; OR
A landline telephone bill or cable bill (Direct, Dish or Cox).
There are also other types of homestead exemptions, such as a disabled veterans or age freeze exemption that may have a different set of requirements. As an example, for those seeking age freeze exemptions in Orleans Parish, you must be 65 years old by December 31st the year prior to the exemption start. In addition to that, you must provide proof of income and you are still mandated to comply with all other requirements of a general homestead exemption.
A homestead exemption can be applied for at any time. In Orleans, you only need to apply once, and the exemption remains permanently, unless you move. Note: You can only have one homestead exemption, as you can only have one primary residence.
Termite Contract
If there is an existing termite contract that’s transferable, go ahead and put that down on your to do list. We want a lapse in nothing. Contact the termite company, provide them with your information, and that should be that (unless a payment is required. This information should have been disclosed prior to closing). Should you be responsible for obtaining your own termite contract, then you want to be sure to contact a few different places to compare quotes. If you have not figured this out by now, always get quotes from multiple sources and compare your options.
Change of Address with the USPS
Change your address with the post office. There will always be something or someone you forgot to give your new address to. You can now take care of this online for $1.05 charged to your debit or credit card.
A few tips that you didn’t know you needed
Still thinking you’ve closed on your home. Now what? Here are a few tips that can help ease the last of that anxiety.
Make sure you set aside a rainy day fund for home needs only. You can no longer “call the office” to solve your problems.
Pay a little extra on your mortgage each month, even if it’s $5. You want to pay off your mortgage sooner than later, and every little bit counts.
You can always review or change insurance companies if you are able to find a better deal. The rates you initially locked in at won’t likely remain the same after the first year. If the prices get too high, find shop around.
Greet your neighbors. Forming a real sense of community with your most immediate neighbors can foster lifelong friendships and unofficial “watch” systems of your property.
Congratulations! You’ve closed on your home. Now what? Timmy says: Make up your bed and relax in it all day!
Enjoy Your New Home
Finally, the real moment of relaxation and joy. You own this home! There should be no rush to get things done a certain way. Take your time and get to know your space a little bit. Sometimes, what you had envisioned could change once you get settled in. And if you feel like you just can’t wait, maybe look into an interior designer or decorator. Some of them may not be as expensive as you think.
Remember when I said do not make any large purchases or take on any large debt? Well, now is the time you can splurge. Buy that new car or go on that furniture shopping spree. The world is yours! Congratulations! You’ve closed on your home. Now what?
You’ve been on the ground, searching for the property of your dreams for months and months. A million different times, you’ve changed your mind about what you want. You’ve driven yourself (and your real estate agent) crazy. All of a sudden, there is silence amongst the noise. You’ve found your perfect space. This is it! You have your agent write an offer. It’s accepted. She says to you, Congratulations! You’re officially under contract. Meanwhile, you’re thinking: Now What?
Purchasing your first piece of real estate is an endorphin you may chase for some time. It’s like a toddler taking his first steps. The pride of it all! At first, your excitement is almost uncontainable. But like a storm in the night, comes the flurry of emotions. Fear, confusion, the what ifs, and what do Ido next thoughts can become invasive. Take a deep breath. The homebuying process is a process. I think people tend to forget that.
Background Noise
In the background, your agent will be working. There are lots of moving parts to real estate transactions. She will be scheduling your inspection(s), coordinating the communication between all parties, including the lender and title company. You will have documents to sign and things to pay for.
And if you are financing this deal, that means there are several people party to the ability to close on time. The loan officer and the underwriter, the appraiser, the title company, the inspector, the responses from inspection– the list could go on. So let’s start from the top. Now that your offer has been accepted, here’s what comes next.
Contact your lender.
One of the first things you will do is send your lender a copy of the accepted offer, also known as the Executed Purchase Agreement. Now the lender knows you are officially ready to move forward with the loan process. Make sure that you have all documentation required of you. You want to be in the position where the lender is not waiting for you to do anything on your end.
Cut the check!
Remit your deposit payment to whomever will be holding the deposit. Oftentimes, it is the title company, but can also be one of the real estate brokerages involved in the transaction. Personally, I recommend that buyers have the title company, which serves as a third party, to hold the monies.
Get insurance quotes.
Start calling insurance companies to get quotes. If you’re in Louisiana, those calls should be made to both homeowner and flood insurance companies. Homeowner’s insurance pricing is going to rely on a number of factors, such as your property’s location. And don’t forget, pets cost money. Some policies do not allow certain animals, including specific breeds of dogs. And just in case you were wondering, there are a couple of things you can do to potentially lower the cost of your homeowner’s insurance, including installing a security alarm system and/or a fence.
Inspection/Due Diligence Period
While your agent will have scheduled the inspection, you will likely have to pay for it just after it has been scheduled or when the inspector arrives on site. Your agent is normally present for the inspection. Sometimes both the listing and selling (buyer’s) agents are there. Because the inspection can take a minimum of two hours, I tend to recommend the buyer not come, until towards the end, if the buyer chooses to come at all.
At the end of the inspection, the inspector will go over everything with your agent and discuss the most meaningful of his findings. From there, he will send you and your agent the report. In Louisiana, you are allowed 72 hours from receipt of the report to respond to the seller of the property with your decision. If you are satisfied with things as they are, then you simply sign off that you are ready to proceed with the Act of Sale, or closing. On the other hand, should you find that you are not content with the results of the inspection, your response can be handled in a number of ways.
One option is to ask the seller to address whatever issues you have with the property. You could also ask for a reduction in the sales price. Or, you can ask for cash at closing. If the amount of work is too much of a concern for you, you are able to cancel the deal, and get your deposit back without penalty.
Home Stretch
Assuming you are moving forward, you are now waiting on a few things. One, the results of the appraisal report– which has the power to kill a real estate deal. If the property appraises for more than what you are under contract for, then the transaction can proceed without cause. Contrarily, if the property appraises for less than what you are under contract for, your lender will rescind the pre-approved loan amount. At that point, you will have to either come up with more money to make the difference, renegotiate the price down with the seller, or the deal will be cancelled due to your inability to obtain financing.
Two, the title clearance. The goal is for the title to be free and clear. The title company will hopefully address any potential issues early on, such as a lien against the property or some far away heir that needs to sign off on the sale.
And finally, you are waiting on your lender to utter those magical words: you have beencleared to close. In other words, your loan has been underwritten and come back approved for funding. This information is then provided to the title company, and the title company schedules the closing date.
The Act of Sale.
Closing day has finally arrived. One thing I will say is, a real estate deal is not a deal until (and unless) it closes. Be prepared by readying all monies due. You should have wired your payment, or have your check in-hand to submit to the title office. At the closing table, you will present your ID, your money, and sign a bunch of papers. Sometimes, you may learn that some money is given back to you at closing, so the title company could possibly cut you a check! Sometimes. Don’t get too excited. Anyway, if you have successfully made it to this point, then Congratulations! You are officially a homeowner.
A Note: Do not make any large or excessive purchases, while you are in the process of buying property. Do not, do not, do not. If you need to make any large purchases, or take on any large debts, do it at the time the deal has closed. Not a moment sooner.
The birth of a blogger—well, of this blogger—is today… Literally, thirty something years ago, this blogger was born. Wow.
The Birth of a Blogger. On January 31st (a few short years ago), the greatest gift given to my parents arrived. Jolandra, their firstborn child– a symbol of their love and the definition of God’s love in physical form. I know this because I am a mother. And I never really knew love until I became a parent.
I once placed so much stock into other people, as if I was unfamiliar with love. I just cared so much about people calling me on my birthday and “making me feel important,” as if that somehow determined my self-worth. (Let us all pause and thank the Good Lord for growth). Now, the things that make me happiest are those intangibles, like good health, my relationship with God, my beautiful family, our experiences…and the list goes on. Realizing that is, in and of itself, a gift!
Introspection is a major component to success.
Over the course of the last few years, I’ve grown so much more as a person. It’s almost unfathomable that there’s still so much room for change. I don’t know. I guess I always thought that people this age had life figured out…and that although change is constant, you are overall who you are meant to be. I thought when I got here, I would be finished/established/complete. In reality, this is only the beginning!
Progress is impossible without change, and those who cannot change their minds cannot change anything.
George Bernard Shaw
In an effort to be more intentional this year, I am revisiting the things that make me happy. Writing is one of them. I began writing poetry at the age of 8, as a way of coping with the untimely passing of my paternal grandmother. Eventually, I wrote for my school newspaper in middle school. I also began writing movie scripts in high school. In college, I wrote lots of poems and did some creative writing, but my professional path veered in a different direction or two.
A wise person always has more than one stream of income.
It took me a while to understand that multiple streams of income are a necessity. It’s something my father, a master of many trades, often preached. But I was shielded from the need for this, which was largely due to his (and my mother’s) hard work. Don’t get me wrong, the lessons of diligence was one of repetition. My work ethic rivals many of the hardest working people you know. However, somewhere down the line, the concept of multiple income streams was lost in translation. You know how it is when you have a “good job.”
I allowed myself to become comfortable working for someone else.
As everyday life consumed me, my dreams shifted and my personal goals seemed further and further from reach. Little did I know, the shakeup that was a-coming. The company I had been investing my blood, sweat, tears, and ideas into informed me that they were selling the entire operation to another company. It was right before Christmas 2017, and I would be out of a job in a couple of weeks! Can you imagine? I mean, I literally had an infant and a brand new house. I never took maternity leave, so I worked up until the day I went into labor. I was physically in meetings mere days after delivering my son. It was a devastating blow on so many levels.
That’s when I felt my world crashing down. How could this happen to me?? I had built genuine relationships and loved working for this company. I felt like the wind had been kicked out of me. And then I remembered: At least a year prior to losing my job, I prayed to God asking that this be my last time working for someone else.
Be careful what you ask for. You just might get it.
Ultimately, as tough as this situation was for me financially, and even emotionally, I thank God for it. I was comfortable, and He saw fit to unbench me. This reminded me that there is no such thing as job security, and if I had been investing in myself the way that I should have been, my finances would not have been so harshly impacted by the abrupt loss of employment. (This is why we should pay more attention to the lessons our parents try to teach us).
Now, my life looks totally different. The day that I lost my job, I was awakened… and though I struggled in the immediate years that followed, I am so grateful for every ounce of it. Because of that sequence of events, I experience life in a different capacity.
Being a Real Estate Agent can be a financial rollercoaster ride! So many factors come into play when it comes to people buying/selling property. What’s going on in politics? How is that affecting the federal interest rates? Meanwhile, those bills could care less what is going on with politics or people, including you. But, I know that I can attain financial freedom. I know that I can help educate others about building wealth through property ownership. It is an even greater accomplishment when we complete those goals together.
I have suffered some losses, but I am winning.
During this season of growth, several people I have given to and poured so much into have abandoned me. I have felt discarded and disregarded, unworthy of their praise/not important enough for them to reciprocate that love. I shed many tears for those losses because they do hurt, but I actively move through those feelings. You know why? Because the times shared with those people have served their purpose. I have taken my power back. It is no longer about them. This birth and rebirth is all about me.
Repeat after me: This year, I will be kinder to myself and love myself more.
I am prepared to make cutthroat decisions about who remains a part of the “in-circle” of my life. That means, people who only take and request things from you should not have unlimited access, if any access at all. Why should they, if they can add no value? I have felt used up by some people, and wallowing in hurt feelings about it is only draining to me. They could care less. So neither will I. (More on this topic to come).
I will do things that genuinely make ME happy and fulfilled. 2021 is my year of Renaissance- the year of Jolandra. Each year, we should strive to make it better than the last. 2020 threw some curveballs none of us could have anticipated, but at the very least, it positively showed us that we need to strive for total wellness. No one else is going to do that work for us. Today is the day I have been reimagined, revitalized, and born again. Today, my self-published eBook called Understanding Creative Financing in Real Estate has been released! Today is the birth of all the possibilities. Today, is The Birth of a Blogger. Happy Birthday to me!
What are some of your goals for 2021? Long term or short term, share them in the comments below.
What do you get a 4-year-old child whose birthday is one month after Christmas? A junior real estate assistant, on his way to becoming a tycoon within the Real Estate Industry? More toys? Nope. Clothes? Always. A mini briefcase? Meh. Not sure about that last one, but I do believe in providing my children with gifts that keep on giving. On January 21, 2021, Timmy became a published author, writing Timmy the Blue Excavator.
Purchase your copy today!
Of course, he did have some help from yours truly, but the story is one that can be read to all the little people in your life. For little people by little people. See what I did there? Anyway, here is the official description:
Timmy the Blue Excavator knows he looks different than the other excavators on the yard. The other excavators are also not very nice to him. With the help of his best friend, Tcharlie, Timmy learns to accept and love himself first. Only then will others follow suit.
Timothy C. McNeil II
Timmy is a junior real estate assistant, a model, and now he can officially add author to his resume. That makes me so happy, and so proud! I enjoy instilling values and lessons in my children, and I truly want them to understand the difference between assets and liabilities. It is important that we start them out early and groom them for their own successes.
In what ways do you encourage and support your kids?
Do your children have businesses you would like to share? Leave us a comment below or write in to Jolandra@TheColeture.com and tell us what you and your mini bosses have going on.
Be sure to check out Timmy the Blue Excavator and support Timmy by purchasing a copy. And don’t forget to leave a review. We hope you enjoy it just as much as we do! #doitforthecoleture
Some people don’t realize there is more to purchasing property than just obtaining a loan and finding a house. You may not believe the number of people who don’t even think they need money down for a loan. Maybe you are one of those people. As a first-time home buyer, you simply don’t know what you don’t know. And if you haven’t purchased in a while, perhaps you don’t recall every step of the process. If you are interested in purchasing real estate, it is wise to speak to a licensed real estate professional in your area for more insight on what the home buying process entails. One of the most important things to note is that there are some expenses that you must pay directly. Here are 5 out of pocket expenses when buying real estate:
Pro Tip: It’s always a good idea to take a First Time Home Buyer’s Class. It will really help you understand the process more. Some lenders may even require it.
The first out of pocket cost is the deposit. The deposit, subtracted from the down payment, is any amount you choose to place with your accepted offer. Only after the deposit is paid, will the property to be taken off the active market. This lets the seller know you are committed or sincere about making the purchase. Whether you choose to put down $500 or $5000, that amount will be due within the next few days after your offer has been accepted.
Pro Tip: Although you can choose to remit as much or as little as you like, sellers tend to view an offer more seriously when they see that you have “skin” in the game.
The next out of pocket expense, which could be the largest, is the down payment. There are several different types of loan structures, but the most common types require some down payment. FHA loans, typically require 3.5% of the purchase price (the price you are paying for the property), while a conventional loan typically requires up to 20%. There are some loans that offer 100% financing, which means no money down (initially). Just keep in mind that there is no such thing as a free lunch. The down payment must be paid at closing, so be prepared.
Pro Tip: Regardless of your loan choice, you can always put more money down to lower your overall costs.
Probably the second out of pocket expense you will face is for the home inspection. If you are financing the purchase of a home, you will be required to have a home inspection. If you are paying cash for your home, be advised that you should definitely still get one. Once your offer has been accepted, your agent should schedule your home inspection as soon as possible. The price of a home inspection varies, and is contingent on the home’s size, but could be about $400+. The fees will be due either prior to the inspection, or immediately after the inspection is completed. That will depend on the inspector and/or inspection company.
Pro Tip: The home inspection doesn’t typically cover a video pipe inspection. The pipe inspection could be an additional $200 or more, again depending on other factors, such as location and length of pipes.
The next out of pocket expense due almost immediately after your offer is accepted is for the appraisal. The appraisers are chosen by your lending institution. If you are a cash buyer, or even a seller, it is still a good idea to obtain one. The appraisal can be helpful to a seller in determining your list price, or to a buyer determining purchase price. The appraisal can cost around $400.
Lastly, the final out of pocket cost we are discussing are the closing costs. Closing costs include the title attorney fees, document recordation with all appropriate parties, property taxes, insurances, etc. Both the buyer and seller are responsible for some closing costs. However, as the buyer, it is possible for you to show up to the closing table and have to pay nothing!
Pro Tip: Do your homework.
The outlined expenses may not be the only expenses you incur during a real estate transaction or process. This article should serve as a guide only, and not as all-inclusive. You will likely have other expenses, such as moving costs, and/or deposits that may be required for the opening up of utility accounts, and the like. Nevertheless, these 5 out of pocket expenses when buying real estate are very important to be aware of.
As we approach the new year, and new goals are set, many have purchasingproperty as a priority on their lists. If you don’t know any real estate agents personally, ask a friend or do a quick search online to find one. You can also contact me, and I can refer you to some agents in your respective areas. Reach out to a few, and move forward with who you feel most comfortable with. Let the agent know where you are in the homebuying process, and ask any questions you may have.
Pro Tip: There is no shame in not knowing, but it’s best to educate yourself as much as possible, even when you are working with an agent.
Realtor.com provides some good tips for first-time home buyers, as well. If you are looking to purchase property in Louisiana or Georgia, please feel free to send me a message here. I absolutely love assisting people with accomplishing their goals and building wealth in the process! Let me help you accomplish your goal in this new year. I’m ready when you are.
Have you ever purchased a home? What out of pocket expenses were you unaware of? Share your experiences below.
