Hi People.
Finally. A good story. A story of how good things happen to good people who work hard and strike when the iron's hot. This story is for everyone who put in an offer to purchase a home after offer after offer with no success. This should be an inspiration to those folks.
Yesterday I was out with some clients ("Clients" sounds kind of sterile. These are friends of mine. I do have friends you know) looking at some property in Poway. We've been trying for several months and have wrote multiple offers on a gang of houses and just have been beaten like the Padres (Sorry), so we finally broke down and decided to start writing offers on the dreaded "short sale" (Short sales are dreaded for several reasons: 1. The ugly short sale can take up to a year to close. The tax credit of $8000 is up in April (You have to be in escrow by April 30th and close escrow by June 30th)Who can wait a year? 2. Since they take so long there is no guarantee that the bank will not foreclose on the property while you're in escrow. Kind of like a 5 year engagement and then you find out your fiance' wants to be a nun. 3. You have no idea what the seller is going to do to the house before you buy it. People selling their house as a short sale are not getting any money back. They are just trying to salvage some credit. Plenty of sellers in this predicament trash the house and take anything that's valuable out of the home and sell it on Craig's List. Bottom line, in a short sale you do not know what you'll get or if you'll get it). But, I digest (big breakfast). so we're looking at these places that my clients really do not want but they realize that in their price range they get what they get. So, we're trying to have a good attitude about the short sales in their price range when my clients got an email.
Right when we were about to leave my clients were notified , via email on their phone, that there was a new home on the market in there price range in that very neighborhood that was a regualr sale(I set them up on an automatic notification of anything within their parameters). We thought we should at least drive by.
We showed up and I knocked on the door. "That was fast, I just put it one the market. Come on in" said the friendliest lady ever. We went in and my clients loved it. Through some conversation I realized that the owner was the listing agent too. I pulled my clients aside and whispered "Do you like it"? They eagerly nodded their heads. I asked them if they wanted to pull the trigger right now. Again with the eager head nodding (Kind of like human bobble heads). I then asked the seller/ listing agent if she wouldn't mind if I used her computer to write up a full priced offer right then and there. She was a human bobble head too. Sold in less than an hour of being on the market.
So, People, keep trying. Don't give up. Your house is waiting for you out there.
God Bless.
Sunday, February 28, 2010
Saturday, February 27, 2010
But, I Thought You Said....
Hello People.
Here it comes. Interest rates are starting to creep up. We do not know if this is a trend or a blip.
Last week the fed raised the discount rate from .5% to .75% and claimed it would have no effect on interest rates. Wellllllllll, it looks like that was a little misleading, or at least naive. We will see.
Click on the title to see what the Wall Street Journal has to say.
God Bless
Here it comes. Interest rates are starting to creep up. We do not know if this is a trend or a blip.
Last week the fed raised the discount rate from .5% to .75% and claimed it would have no effect on interest rates. Wellllllllll, it looks like that was a little misleading, or at least naive. We will see.
Click on the title to see what the Wall Street Journal has to say.
God Bless
Wednesday, February 24, 2010
Got My A** Whooped
Hey People.
Well, I got whooped again. I put in a strong (Like military coffee) offer to purchase a home for some clients (Nice young couple. Not their name, just a description) just 1 day after it came on the market. The asking price was $265,000. My clients really wanted it. We observed all of the realtor cards in the home (Looked like 52 card pick up). We put 2 & 2 together (Comes out to be 4) and figured there would be multiple offers on that bad-boy. We went in at $285,000. And, we were right.
There were 5 other offers. The listing agent said we were in the top 3 (?) and countered our offer with a "Submit your best and final offer". Let me tell you, those are dreaded words to people trying to buy a home. That means you blindly pick a number out of the sky and out bid yourself, and hopefully the other buyers you are competing with. My buyers went up to $300,000. You would've expected that we won. We did not.
Some Jackass (Not really fair. I don't know the person who won the property. I guess I'm just bitter/ jealous/ frustrated/ pissed) bid over or equal to our offer (The listing agent wouldn't tell us) and offered all cash. The seller had to take his offer.
So, if you're out there trying to buy a home you better come strong (And quick). There are a ton of sharks out there with cash trying to steal your dreams. Don't let them. You can always put in offers on more than one home at a time (It's just an offer to purchase, not a purchase). Then you'll have some options, even if they do steal from you (Bastards).
Let me know what you think.
God Bless.
Well, I got whooped again. I put in a strong (Like military coffee) offer to purchase a home for some clients (Nice young couple. Not their name, just a description) just 1 day after it came on the market. The asking price was $265,000. My clients really wanted it. We observed all of the realtor cards in the home (Looked like 52 card pick up). We put 2 & 2 together (Comes out to be 4) and figured there would be multiple offers on that bad-boy. We went in at $285,000. And, we were right.
There were 5 other offers. The listing agent said we were in the top 3 (?) and countered our offer with a "Submit your best and final offer". Let me tell you, those are dreaded words to people trying to buy a home. That means you blindly pick a number out of the sky and out bid yourself, and hopefully the other buyers you are competing with. My buyers went up to $300,000. You would've expected that we won. We did not.
Some Jackass (Not really fair. I don't know the person who won the property. I guess I'm just bitter/ jealous/ frustrated/ pissed) bid over or equal to our offer (The listing agent wouldn't tell us) and offered all cash. The seller had to take his offer.
So, if you're out there trying to buy a home you better come strong (And quick). There are a ton of sharks out there with cash trying to steal your dreams. Don't let them. You can always put in offers on more than one home at a time (It's just an offer to purchase, not a purchase). Then you'll have some options, even if they do steal from you (Bastards).
Let me know what you think.
God Bless.
Tuesday, February 23, 2010
Come And Get It
Hi People/ Investors.
An article came out by The Wall Street Journal and it says now is a good time to invest in rental property. I disagree. It is a great time to invest in rental property.
Prices have fallen faster than rents, leaving a delicious capitalization rate (Take the net income, not including mortgage payments, and divide it by the purchase price. The higher the number the better.). Back in '07 you would be lucky to get a San Diego cap rate of 5%. Now, even a lowly duplex will get you at least 7%. Plus the interest rates are nutritious (Couldn't let the "food" analogy drop). That's good eatin'. But, if everything else sucks (Everything does not suck. We live in San Diego) what are the down falls?
Glad you asked. Now a days you will need at least a 25% down payment. That ain't chicken gizzards. Add in the closing costs and you're out of pocket for some heavy change.
Unemployment is a kick in the wrong spot (Imagine your 2nd most painful spot. Now imagine that it's painted like a soccer ball. Now imagine you're in a country that cares about soccer...). If people don't make money they can't pay rent.
Those are scary issues, but with any investment their are risks. People will live in Southern California and people will pay to stay somewhere.
Also, remember that when you buy rental property you have bought a job (Unless you hire a property manager. He'll charge you approx 10% of gross rents. Not a bad idea if it doesn't cut into your pocket). 1st, make sure you do your homework before you buy. What are rents? Projected rents? How are the schools? Are there jobs in the area? Public transportation? Does it pencil? Are you being honest with the #s? 2nd, how much will it cost to get the property in top rental market shape? You want to be the cat's meow. if people are looking to rent you want them in your place, not your neighbor's.
Again, if you have the cash, the credit, the time, the ambition and the stomach to jump in, then jump in. People make a lot of money renting out real estate, if they know what their doing. Also, flips are dead. I don't care what HGTV, A&E or ESPN say (Unless you're buying all cash at an auction. Another time).
Check out the article by clicking on the title.
God Bless.
An article came out by The Wall Street Journal and it says now is a good time to invest in rental property. I disagree. It is a great time to invest in rental property.
Prices have fallen faster than rents, leaving a delicious capitalization rate (Take the net income, not including mortgage payments, and divide it by the purchase price. The higher the number the better.). Back in '07 you would be lucky to get a San Diego cap rate of 5%. Now, even a lowly duplex will get you at least 7%. Plus the interest rates are nutritious (Couldn't let the "food" analogy drop). That's good eatin'. But, if everything else sucks (Everything does not suck. We live in San Diego) what are the down falls?
Glad you asked. Now a days you will need at least a 25% down payment. That ain't chicken gizzards. Add in the closing costs and you're out of pocket for some heavy change.
Unemployment is a kick in the wrong spot (Imagine your 2nd most painful spot. Now imagine that it's painted like a soccer ball. Now imagine you're in a country that cares about soccer...). If people don't make money they can't pay rent.
Those are scary issues, but with any investment their are risks. People will live in Southern California and people will pay to stay somewhere.
Also, remember that when you buy rental property you have bought a job (Unless you hire a property manager. He'll charge you approx 10% of gross rents. Not a bad idea if it doesn't cut into your pocket). 1st, make sure you do your homework before you buy. What are rents? Projected rents? How are the schools? Are there jobs in the area? Public transportation? Does it pencil? Are you being honest with the #s? 2nd, how much will it cost to get the property in top rental market shape? You want to be the cat's meow. if people are looking to rent you want them in your place, not your neighbor's.
Again, if you have the cash, the credit, the time, the ambition and the stomach to jump in, then jump in. People make a lot of money renting out real estate, if they know what their doing. Also, flips are dead. I don't care what HGTV, A&E or ESPN say (Unless you're buying all cash at an auction. Another time).
Check out the article by clicking on the title.
God Bless.
Monday, February 22, 2010
Radio, Suckas Never Play Me
Hi People.
From the good words of Chuck "D".
Check out my last radio show by clicking on the title.
On the show we talked about short sales and how they ain't for everyone, loan modifications and how they practically do not exist, V.A. benefits and how all government programs run like a paraplegic and how to commit 1031 (capital gains deferred program).
God Bless
From the good words of Chuck "D".
Check out my last radio show by clicking on the title.
On the show we talked about short sales and how they ain't for everyone, loan modifications and how they practically do not exist, V.A. benefits and how all government programs run like a paraplegic and how to commit 1031 (capital gains deferred program).
God Bless
Friday, February 19, 2010
Loan Stuff
Hi People.
I am so proud to introduce to you my very first guest writer, Eddie Messina. Eddie's a good friend of mine and we have done some transactions together. You might want to listen to him, he'll save you some loot & heart ache. I'm going to take a nap.
Here's Eddie.....
Bank of America was in the news again (back on the 10th) this time being charged with fraud. This really got me thinking this morning about these crazy banks. I’m not sure they are always looking out for your best “interest” … thank you I will be here all night- yuk yuk yuk. The pun, the lowest form of comedic humor but my best friend. Let’s talk about interest for a moment. Many homeowners choose their bank when taking out a mortgage loan. Why not? It is convenient and grandma Moses did it that way. Does this convenience come at a price? Of course! You could wash your car for free but most of the time we take our vehicles to the car wash to have somebody else do it and we are perfectly cool with paying the extra money to rid ourselves of this responsibility The difference between these two conveniences is one has an obvious price to pay (car wash) and the other has a hidden convenience charge (banks) that could cost you’re a few thousand over the years.
The truth is most lenders have access to about the same rates as anybody else on the block and when they price out a loan for a client most of the time they have to reveal what profit they are making on the loan (points/rebates) on the closing statement ( HUD-1) but Banks are exempt from the Real Estate Settlement Procedure act (RESPA). RESPA laws protect borrowers by requiring lenders to disclose information about their mortgage profit margins. Because of this exemption, the banks have a great way of slipping in a hidden fee called the Service Release Premium. This is where they boost your rate and sell to the secondary market for profit. If you were like me before I entered the world of mortgages, I had no idea what the daily wholesale rate was on a given day. If a lender or bank told me 6% I was like cool what is the payment?? Right everyone is worried about the payment but it is important to know with a little probing I could have got a %5.5 saving thousands of dollars over the life of the loan. I could put some carrots in my baby girl’s ears with that kind of savings!
To avoid this always make sure you know what the yield is on the Fannie Mae website versus the Banks rate sheet. Have your bank rep try to explain the difference between the Fannie Mae rate and their rate… that will be good for a laugh or two. Now you are not going to get the Fannie Mae rate (unless you’re bed with Fannie Mae but I don’t want to get into your personal life right now) because everyone has to make a profit in business. Even the street hustlers know that and believe me these hustlers with the ties they really know this game. People should be paid for their services and banks and mortgage brokers are no different. At least you can negotiate a lesser rate than you would have received being the wounded deer or perhaps take the higher rate, but have your closing cost paid! Now that is a novel idea. . . save some of that hard earned money for your savings account versus buying a rate! Well, I will get into that topic next time. I’m not sure you are ready for that yet! I can only unplug you from the Matrix one blog at a time; however, I will leave you with one last tip because I know your are so hungry for this information. When dealing with a bank you are basically stuck using their rate sheet and agenda but if you use a broker they can search multiple lending institutions for programs/rates. Again, I will tell you how to navigate with a broker on my next post! I can only feed you so much this time. Catch a (wo)man a fish and feed him/her for dinner. . teach him/her how to fish, feed him/her for a lifetime… or at least until they get a well paying job.
For more info visit http://emessina.spectra-funding.com
Edward Messina
Spectra Funding
cell: 619-933-3462
Fax: 619-303-7485
emessina@spectra-funding.com
I am so proud to introduce to you my very first guest writer, Eddie Messina. Eddie's a good friend of mine and we have done some transactions together. You might want to listen to him, he'll save you some loot & heart ache. I'm going to take a nap.
Here's Eddie.....
Bank of America was in the news again (back on the 10th) this time being charged with fraud. This really got me thinking this morning about these crazy banks. I’m not sure they are always looking out for your best “interest” … thank you I will be here all night- yuk yuk yuk. The pun, the lowest form of comedic humor but my best friend. Let’s talk about interest for a moment. Many homeowners choose their bank when taking out a mortgage loan. Why not? It is convenient and grandma Moses did it that way. Does this convenience come at a price? Of course! You could wash your car for free but most of the time we take our vehicles to the car wash to have somebody else do it and we are perfectly cool with paying the extra money to rid ourselves of this responsibility The difference between these two conveniences is one has an obvious price to pay (car wash) and the other has a hidden convenience charge (banks) that could cost you’re a few thousand over the years.
The truth is most lenders have access to about the same rates as anybody else on the block and when they price out a loan for a client most of the time they have to reveal what profit they are making on the loan (points/rebates) on the closing statement ( HUD-1) but Banks are exempt from the Real Estate Settlement Procedure act (RESPA). RESPA laws protect borrowers by requiring lenders to disclose information about their mortgage profit margins. Because of this exemption, the banks have a great way of slipping in a hidden fee called the Service Release Premium. This is where they boost your rate and sell to the secondary market for profit. If you were like me before I entered the world of mortgages, I had no idea what the daily wholesale rate was on a given day. If a lender or bank told me 6% I was like cool what is the payment?? Right everyone is worried about the payment but it is important to know with a little probing I could have got a %5.5 saving thousands of dollars over the life of the loan. I could put some carrots in my baby girl’s ears with that kind of savings!
To avoid this always make sure you know what the yield is on the Fannie Mae website versus the Banks rate sheet. Have your bank rep try to explain the difference between the Fannie Mae rate and their rate… that will be good for a laugh or two. Now you are not going to get the Fannie Mae rate (unless you’re bed with Fannie Mae but I don’t want to get into your personal life right now) because everyone has to make a profit in business. Even the street hustlers know that and believe me these hustlers with the ties they really know this game. People should be paid for their services and banks and mortgage brokers are no different. At least you can negotiate a lesser rate than you would have received being the wounded deer or perhaps take the higher rate, but have your closing cost paid! Now that is a novel idea. . . save some of that hard earned money for your savings account versus buying a rate! Well, I will get into that topic next time. I’m not sure you are ready for that yet! I can only unplug you from the Matrix one blog at a time; however, I will leave you with one last tip because I know your are so hungry for this information. When dealing with a bank you are basically stuck using their rate sheet and agenda but if you use a broker they can search multiple lending institutions for programs/rates. Again, I will tell you how to navigate with a broker on my next post! I can only feed you so much this time. Catch a (wo)man a fish and feed him/her for dinner. . teach him/her how to fish, feed him/her for a lifetime… or at least until they get a well paying job.
For more info visit http://emessina.spectra-funding.com
Edward Messina
Spectra Funding
cell: 619-933-3462
Fax: 619-303-7485
emessina@spectra-funding.com
Thursday, February 18, 2010
I'm Going Back To Cali
Hi People.
Even though home prices are better than wedding cake and interest rates are lower than a demon's anklet, we San Diegans have been named the "13th Most Unaffordable County In The U.S.". How can that be?
Well, we don't earn that much income. The last quarter told us that the median household earned only $74,900. That's Mom, Dad, dead-beat brother-in-law, Grandma (Grandpa's not with us any more) and the kids (paper route ain't what it's cracked up to be). Only 48.1% of San Diegan's can afford a median priced home at $319K.
The good news. 11 out of the top 20 most unaffordable counties were in California. Why is that good news. That's good news because we are where everyone wants to be. That's why we're unaffordable. Places like Enid, Ok. will not be (or ever be) on the most unaffordable list. LL Cool J did not (or ever will) do a song named "I'm going back to Enid, Enid, Enid".
Click on the link to see the article.
God Bless.
Even though home prices are better than wedding cake and interest rates are lower than a demon's anklet, we San Diegans have been named the "13th Most Unaffordable County In The U.S.". How can that be?
Well, we don't earn that much income. The last quarter told us that the median household earned only $74,900. That's Mom, Dad, dead-beat brother-in-law, Grandma (Grandpa's not with us any more) and the kids (paper route ain't what it's cracked up to be). Only 48.1% of San Diegan's can afford a median priced home at $319K.
The good news. 11 out of the top 20 most unaffordable counties were in California. Why is that good news. That's good news because we are where everyone wants to be. That's why we're unaffordable. Places like Enid, Ok. will not be (or ever be) on the most unaffordable list. LL Cool J did not (or ever will) do a song named "I'm going back to Enid, Enid, Enid".
Click on the link to see the article.
God Bless.
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