The DTI ratio is one of the most important ratios there is when it comes for qualifying for a co-op or getting a loan from the bank. This simple equation is often done wrong or over looked until after an offer is made. In the video above Alexander Fazelani explains what is a DTI and how to calculate it.
I Wasn't Looking to Sell Until My Broker Got Me A 1 Million Dollar Offer
Queens, NY is a one of a kind place filled with culture and adventure. Most Queens home owners have lived here for so long and they're unaware that a gold mine sits right under their feet. Some people have dreams to move to Florida and never look at their home as the vehicle that could get them there in first place.
True Story:
To protect this millionair's identity we will call this man Eric. Eric started off renting in Elmhurst Queens. Upon his mother passing away he inherited a 1 bedroom co-op worth $200k in 2009. He decided to sell with his realtor and wanted to move somewhere that had potential. His Realtor recommended Sunnyside because Long Island City was on its luxurious rise to fame.
He moved in 2009 and lived in the property till 2015. He wasn't thinking about selling until his realtor told him that he might want to test the market because he thinks the market is shifting and he could walk away with some serious bucks! The realtor tested the market and the 2-bedroom he bought for $300k sold for $429k! At that price, he could not turn it down.
"Invested...with a huge house and 8 investment properties."
He then bought a Woodside condo which was a rental conversion building and because he was one of the first to buy he was able to secure one of the 2-bedroom 2-bath units at $495k. He promised his realtor that this would be the last move until in 2017 and his realtor told him to test the market. He ended up selling that unit for $836k.
Fast forward Eric took his money and moved out of state. He took his profits and invested in Florida with a huge house and 8 investment properties.
LESSONS FROM ERICS STORY:
TEST THE MARKET WITH YOUR PROFESSIONAL
It is always important to run a market analysis on your property every year. If you like what you see place it on the market you have nothing to lose and everything to gain. You never know!
TIP: Make sure your realtor knows exactly what he's doing and you trust their judgment and knowledge of the market.
KEEP AN EYE ON THE HOMES SELLING ON YOUR BLOCK
If you see a bunch of homes on your block go on the market it can mean one of 2 things. The market is dropping! :: The sky is falling :: OR values are going through the roof! It's important to talk to a professional to come up with a game plan and figure out whats going on.
BEFORE YOU MAKE MAJOR REPAIRS IT MIGHT BE WISE TO SPEAK TO YOUR REALTOR
I want to redo my kitchen before I sell because it will get me 50k more for my property.
TIPS: DONT MAKE ANY RENOVATIONS WITHOUT SPEAKING TO YOUR SALES PROFESSIONAL.
Trends change and you could lose a ton of money by making the wrong renovation decision. It would be a shame if you could have still got market value by just leaving your home 'As Is.'
We can all learn the power of real estate investing from Eric. Some may consider him lucky based on the factors presented to him. The funny part about the story was Eric never considered himself an investor until he had rental properties. IF YOU ARE A HOME OWNER YOU ARE AN INVESTOR and you might be making a killing without even knowing it!
