Real Estate 411: How do I protect my investment property during the winter months?

Maximize your ROI with these tips on caring for your investment property

Seasons are changing, we are no longer experiencing 105 degree heat and we can actually enjoy sitting, eating and playing outdoors – at least for a short while. The changing of the season brings new maintenence issues that will need your immediate attention.

During these next few months we will have more rain and colder, more extreme temperatures – you want to be prepared for the fall and winter months and do what you can to preserve and protect your investment property.

Here are our tips on things to do to make sure your property is prepared to handle the colder weather and avoid unnecessary energy loss and or cold weather disasters! Whether you own one or 20 properties, doing these things now will pay off when Spring comes!

Winterize:

• Protect your water supply lines by covering exposed faucets
• Insulate lines exposed to cold
• Use insulation foam to seal cracks and crevices
• Seal windows and doors to cut down on energy loss
• Fill cracks in drives and parking areas to protect from additional damage due to freezing water
• Paint and spackle doors, windows, and fascia sofits – this will pay dividends next spring!
• Replace and seal damaged siding and wood – this will save you money now, before additional damage is done by the wet and cold weather

Avoid frozen pipes:

• Locate your home's water cut-off valve NOW - learn how it works so you can act quickly in case of an emergency
• In case of broken pipes, turn water off at the main shut off, if the location of the main shut off is unknown, turn off the valve located on the hot water heater (generally located on top of the water heater)
• Cover all foundation vents by filling the openings with foundation plugs - ideally, you should install your foundation plugs in late October and remove in late April
• Disconnect water hoses and wrap outside hydrants and spigots
• Drain your sprinkler system before the first freeze
• If your home has a hot tub or pool, keep the water circulating constantly in freezing weather
• If the temperature is below freezing, leave the heat on and open cabinet doors under sinks, allowing warm air to circulate around pipes

Avoid the expensive cost of potential repairs in the Spring by being proactive in the maintenance of your investment property this fall and winter.

Other important items:

• Test and replace (if necessary) all smoke alarms
• Replace A/C and heater filters for better efficiency
• Clean out gutters and downspouts
• Continue your landscape maintenance - mowing, edging and weed-eating for a while longer
• Trim bushes back and tree limbs away from the roof
• Spread out the fall weed killer and fertilizer

Need help with your property management?
For assistance in managing your investment properties, contact CENTURY 21 Judge Fite Management Company, a locally owned, certified full service property management company. C21JFPM has been successfully managing homes in the DFW Metro area since 1952 and continues to manage over 1500 local homes. For more information call 972-780-5380 or visit www.C21JFPM.com.

Help your tenants protect themselves with Renters Insurance
We also strongly advise that you recommend Renters Insurance to your tenants to cover their personal property and protect their household from major losses. For more information, or to obtain a competitive quote, contact Linda Shade with CENTURY 21 Judge Fite Insurance (214) 446-2571.

CENTURY 21 Judge Fite Company

800-451-8055 or email 411@judgefite.com

Help me understand the CREDIT SCORING lingo

Talk their language - Know the credit-scoring lingo.

Credit will always be a driving factor in real estate transactions. For the home buyer, you need good credit to purchase a home, and for the home seller, you need good credit to relocate and purchase another dwelling. To help you manage your credit reports and scoring, here is a list of 25 “need-to-know” credit-scoring terms that are commonly used in the financial industry:

Algorithm: A complex mathematical model. In credit scoring, it is used to compare data in millions of credit reports and predict a person's likelihood to repay debts.
Bankruptcy: A legal proceeding designed to help people in financial difficulty get a fresh start by relieving them from having to pay their current debts. Bankruptcies usually stay on a person's credit report for 10 years.
Charge-off: An unpaid portion of a bill that a lender has accepted will never be paid and has recorded on the books as a bad debt. It is a serious negative item on a credit report.
Collection: A creditor's attempt to recover a past-due payment by turning the account over to a collection department or company. Having a debt in collection is a serious negative item on a credit report.
Credit bureau: A credit-reporting agency that is a clearinghouse for information on the credit rating of individuals or firms. Often called a "credit repository" or a "consumer reporting agency." The three largest credit bureaus in the U.S. are Equifax, Experian and TransUnion.
Credit history: A record of a person's use of credit over time.
Credit limit: The most that can be charged on a credit card or to a credit line.
Credit report: A document containing financial information about a person, focusing on his or her history of paying obligations, such as a mortgage, car payment, utilities, and credit cards. Also includes current balances on outstanding debts, the individual's amount of available credit, public records such as bankruptcies, and inquiries about credit from various companies.
Credit risk: The measure of a person's creditworthiness. People who are more likely to repay their debts on time are considered a better risk by lenders, and will be charged lower interest rates for borrowing money.
Debt-to-available-credit ratio: The amount of money a person has in outstanding debt, compared to the amount of credit available on all of the individual's credit cards and credit lines. The higher a person's debt to available credit, the more risky the individual appears to potential lenders.
Default: A designation on a credit report that indicates a person has not paid a debt that was owed. Accounts usually are listed as being in default after several reports of delinquency. Defaults are a serious negative item on a credit report.
Delinquent: A designation on a credit report that a person hasn't made the minimum payment on a loan or a credit card on time. On credit reports, delinquencies are usually shown as being 30, 60, 90 or 120 days delinquent. Delinquencies are a serious negative item on a credit report.
Equifax: One of the three major credit-reporting agencies.
Experian: One of the three major credit-reporting agencies.
FICO scores: The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model. They are used to predict the likelihood that a person will pay his or her debts. The scores use only information from credit reports.
Hard inquiry: An item on a person's credit report that indicates that someone has asked for a copy of the individual's report. Hard inquiries are requests that result from a person applying for credit, such as a mortgage, a car loan, a credit card or a rental application. They are included in the formula for determining a person's credit score.
Installment credit: A type of credit in which the monthly payment is the same every month and the loan has a set time period. The most common forms of installment credit are mortgages and car loans.
Judgment: A decision from a judge on a civil action or lawsuit; usually an amount of money a person is required to pay to satisfy a debt or as a penalty.
Lien: A legal claim placed on a person's property, such as a car or a house, as security for a debt. A lien may be placed by a contractor who did work on your house or a mechanic who repaired your car and didn't get paid. The property cannot be sold without paying the lien.
Public record: Information on your credit report that has been obtained from court records, such as bankruptcies, judgments, and liens. These are never good.
Rate shopping: Applying for credit with several lenders to find the best interest rate, usually for a mortgage or a car loan. If done within a short period of time, such as two weeks, it should have little impact on a person's credit score.
Revolving credit: An account that requires a minimum payment each month plus service charges on the remaining balance. As the balance declines, so does the service charge.
Soft inquiry: An item on a person's credit report that indicates that someone has asked for a copy of his or her report. Soft inquiries can be from current creditors reviewing the file, prospective creditors who want to send out an offer such as a pre-approved credit card, or a person's own review of their file. They are not included in the formula for determining a person's credit score.
Trade line: An account listed on a credit report. Each separate account is a different trade line.
TransUnion: One of the three major credit-reporting agencies.

For more information on understanding credit scoring, contact an experienced Loan Officer at http://www.centurionmortgage.com/ or call 214-638-0228