Middle Class Millionaires

We’re all concerned with maximizing. We want the highest return for our money. We want the best gas mileage our car can get. We want the greatest income from the least amount of work possible. Heck, we even supersize our French fries when go to our local fast food joint for lunch. So why shouldn’t we want the most functional space from our properties?

Of course we want the most from our properties. Since we want the most revenue, it follows that we get the most visual and functional appeal in order to achieve that goal. Recognizing that we are limited by the physical nature of the very properties we own, here’s a few ideas for making the most out of the least spacious properties. Smaller square footage properties are more and more in vogue. They cost less to build, to heat and to maintain. But the fact is that they lack space, and often the space it what makes them rent for more.

The challenge we have then is to give these smaller spaces a bigger feel. This requires the utilization of every inch of available space as well as instituting design elements that enhance the visual nature of the property and give it a more spacious feel. Sometimes this is easier than you might think. It requires some forethought and maybe some demolition and or some easy remodeling. Whenever we undertake this type of function it is important to make sure that your work is sound and that the structural integrity of the property is maintained. Assuming you will do that, here are some ideas for making the most out of small spaces

• Add window bumpouts (bay windows). They give you space to sit or put plants or artwork that will no longer clutter or impede on the square footage of the room.
• Place new windows opposite entry doors into applicable rooms. This allows an unobstructed view into the great outdoors. Since it draws the eye to greater distances, the impression of space in enhanced.
• Remove walls where a hall parallels an appropriate room, thereby enlarging the room. Some older properties have hallways that parallel a room and lead to another room where it would be perfectly acceptable just to enter the room directly from another (now larger) room.
• Remove walls to the side of stairs thereby opening the area to view. With a nice handrail in place this opens a room wonderfully. The wall opposite the one removed then becomes a perfect place for pictures, artwork, or just an accent wall.
• Remove unnecessary closets, opening the room. Many older properties have small coat closets in one room that flow into another. You may well be better off removing the closet and opening the space. When a small closet is needed, a corner closet can be added very inexpensively and will make a room look more modern or better designed.
• Consider half-walls between kitchens and dining areas or living areas. We have all seen these pass-throughs. They make a space much more livable and functional.
• Consider removing walls to make one large multi-purpose room instead of two small rooms. A kitchen/dining room is very popular, as is a dinning/family room combination. In both cases the visual appeal is improved and the sense of space expanded.
• Consider enlarging passageways between rooms giving a more open feel. Small doors feel confining. You may well be better off with wall openings that are much larger.
• Utilize dead space, like space under stairs for storage or bookshelves, thereby removing boxes, book cases etc. from the rooms. Without these items protruding into the room it will feel bigger.
• Enlarge windows when possible to allow natural light and undefined line of sight for people living in or visiting the space. Picture windows not only open but also enliven a room. They are a great addition.

There are a number of ways to enlarge the property without actually adding on. Lots of creative people are coming up with wonderful ideas. As we learn more we’ll be happy to send them along for your consideration. Good luck in your efforts. If we can help, and I suspect we can, it would be our pleasure to do so.

If you or someone you know is in danger of foreclosure, there are a few simple things you can do to improve your situation and possibly remove the problem entirely. Following are 4 things that can be done immediately to actively remove the pressure and problem.

1. Contact the lender and see if interim arrangements can be made. Lenders have flexibility and in most cases will try to help their customers any way they can. They don’t want the foreclosure to happen. It’s tough on their business. In some cases, lenders can allow a “cram down” on a mortgage. While this action is most common in a Chapter 13 Bankruptcy, this is where a lender reduces the mortgage balance to make it more in line with the actual value of a property when financing significantly exceeds real property market values. It is roughly akin to having an existing owner do a short sale/refinance on their own property. This may be more attractive for the lender than having the headache and expense of foreclosure and resale of a property where it is obvious that the lender will suffer a larger loss than the reduction in the mortgage balance requested.

2. Be honest with your family and tell them what you are up against. Chances are that family members can help you weather the storm. It’s far better than losing your home and destroying your credit rating. In addition, family members may be in a position to help with refinancing, a short sale or know of someone else who can be of assistance. Sure this is can be a little embarrassing, but in most cases family members understand what has happened and may have had a similar challenge in their life. In these cases family members, when in a position to help, are generally glad to.

3. Contact a HUD-approved credit counseling agency or the FHA or VA for refinancing under more attractive terms. For an approved credit counseling agency call 800-569-4287. These agencies can assist in consolidating loans, reducing interest rates and may be able to assist in producing a “work out” of the situation. To learn of approved FHA lenders call 800-225-5342, and VA lenders call 800-827-1000. You may be able to find a lender who will refinance at a lower rate or at a fixed rate rather than fighting with an existing Adjustable Rate Mortgage that may have reset at a level that makes payment problematic.

4. Contact the state attorney general if the borrower feels their lender misled them. If your lender has enough complaints files, it may result in state legal action on your behalf.

MCM Members can go one step further and access the MCM Forums for specific help and direction with regard to this issue or any other. Remember, we’re happy to help. If you’re not an MCM Member see our current offer.