What’s an Easement and why is it important?!

A real estate agent asks me “what’s an easement?” I thought to myself, that if someone that’s been in real estate for 1 year and doesn’t know, what’s the chance of a home owner or home buyer knowing?  Well let’s discuss it…Simply put, an easement is the right someone has to someone else’s real property.

Picture 9 tiny squares inside of one big square…if you’re picturing it correctly, picture the lonely square in the middle.  Let’s pretend each of those 9 squares has a home on it except for the middle square, let’s also pretend that the middle square is just a vacant piece of land.  Now, stay with me because I’m going somewhere with this.

One day I got a call from an owner that owned a piece of land that was “landlocked” because like our example, there were 8 homes around his land.  Why was he landlocked?  Well because he didn’t have an “easement” to his property.  When he asked me what I thought about his lands worth, I told him “I don’t think much”.  Basically his land was worthless due to the fact that he could never build on it because he couldn’t access it.

So do all homeowners have easements?  The blanket answer is yes, most properties have easements recorded on the title of the property.  For example, a popular one is one favoring the utility companies.  SDGE for example, they need a right to enter your property to check their meters and run their lines, that’s an easement.

Going back to my example with Bob the owner, what could he have done?  He could have gone to one of his neighbors and begged to grant him an easement, if that failed then Bob should have tried negotiating with his neighbors by offering them some money in exchange for an easement.

BE AWARE!!!  You can non-intentionally give someone an easement without wanting to.  There’s something called an easement by prescription.  This is when someone uses a piece of your land for a period of 5 years or more time and time again.  If you allow your neighbor to walk through a piece of your yard to get to the alley, then by you not putting a stop to it over a 5 year period of time, your actually giving them whether you know it or not, an easement!   Be careful out there and best of luck!easement

 

Watch the video herehttps://youtu.be/3mvbFrwNddw

-Voltaire Lepe

Get a Home Loan Without Qualifying!

So this is the deal, I’ve received calls throughout the years from potential home buyers that want to buy a home because they heard of a juicy home buying and wealth building secret… A Seller Carry-Back AKA Seller Financing.  The concept is simple… Most home buyers borrow money from their bank (loan) in order to buy a home, with that loan the seller is paid off and the bank becomes the “note holder” and places a lien against the property to secure their position.  With a seller carry-back, the seller becomes the note holder and places a lien against the property.  So the reason I’m writing this is because a few days ago, my client that is selling his condo called me and said, “Voltaire, I want to carry paper!”.  This was music to my ears!  Why?  Well because there are many benefits to a seller carry back:

Buyer Benefits: 

  1. No Qualifying – no credit check, no job, nothing!
  2. No Loan Fee’s – the sellers typically don’t charge the buyer like a bank would!
  3. Quick Closing – The seller most times can close quickly since there is no waiting on 3rd parties!

Seller Benefits:

  1. Earn Interest on Your Equity – instead of cashing out now, you leave your money as a lien against the home and you earn interest!
  2. Monthly Income – you have the income coming in monthly
  3. Taxes – if you owe capital gains, you owe it over time and not all at once
  4. Protection – You have a lien against the property and can foreclose if payments are missed

The Process:

  1. Seller finds a buyer
  2. Buyer and seller agree to purchase price, length of term, interest rate, down payment.
  3. Buyer and seller open escrow and fill out documents
  4. Buyer conducts their inspections
  5. Buyer brings in down payment and closes on deal
  6. Buyer begins making monthly payments to seller.

Example:

  1. Condo Price: $180,000
  2. Down Payment: 20% = $36,000
  3. Note: $144,000
  4. Interest: 4.5%
  5. Term: 30 Years
  6. Payment: $654

Checkout the YouTube Video I created that explains it in detail!  Good Home Shopping!

Click Here to Watch the Video!

-Voltaire Lepe, Broker @ Lepe Tendwell Properties

Speaking