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Should a Lender refer you to a real estate agent when investing

May 6, 2012 By

With all of the buzz lately that has been generated by Warren Buffet fans, investing in real estate seems to be a  ”No Brain-er”.

However, where should your first stop be?  During my walk this am, not on a Treadmill but on a Treadclimber(much harder :-) ), I read an article about Investing in Real Estate.

While this is a Business Blog for the Santa Clarita businesses, I felt the need to post up my thoughts about making a lender the pivot point in your real estate investment strategy.Start with a realtor

“Who’s going to have your six?”  While the “world view” of real estate agents is akin to some of the most deceitful salespeople in the free market, we think your first step should be with a real estate agents that are themselves FREE AGENTS!

Here is something you may not know or don’t remember.  When you purchase any real estate, there are fee’s that all buyers must pay, these costs are known as “closing costs”.  Mostly they consist of three components:

  • The investors part of the Escrow Fees
  • The investors portion of the Title Fees
  • and The Lender’s Fee
  • (depending on the transaction, most can be covered by the Seller, read more about closing costs here..)
As you can see the real estate agent’s commission is not part of the fees(closing costs), when you purchase an investment property.
Our clients come to us to find out the “why” of investing in Real Estate.  Why should they invest?  Why should they invest now?  Why will they benefit from investing in real estate?  Why should they let their investment real estate agent of choice, do the referring to vendors.
Within a real estate transaction the Real Estate agents is the ring leader – the pivot point – the hub on which the other parts are set in motion.  GREAT real estate agents will have members on their team that can coordinate a closing that will benefit the buyer/investor.
The agent has lists of home inspectors that get the job done and don’t miss anything.  The real estate agent will know the pest inspectors that will be the most critical when needed for inspections.  The real estate agent knows the inventory and those listings that are “going to be” listed for sale before they are made live.
Networking in real estate is critical from an investment strategy.  Hooking your trailer to a real estate agent that is made aware of listings(investment options), that are under contract, but have yet to be placed onto the market for sale, will mean you getting something other investors may not even have a shot at.
The lender?  They are the money end.  You are paying their fee.  With a real estate agent, we are compensated by the SELLER.  No Matter who the seller is.  The Seller could be a bank, investment group, private party or the short sale approval department of a bank.  Either way, you don’t pay your realtor’s fee.
When you find a real estate agent that understands loans and lending, knows the best loan products and has a solid financial base, you have found someone that you need to keep close.  With that kind of knowledge, they can run the interference for you when it comes to the lender’s fees.  You are paying them, it’s nice to have another set of eyes on the investment financing game.
BE Safe – Invest well and contact your real estate professional to run the interference for your real estate investment dreams.

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Filed Under: Real Estate Finance Tagged With: , , , ,

Think Twice Before Adding That Santa Clarita Home Office

January 1, 2012 By

Do you have a real office?

Can you deduct the space in your home as a Home Office?  There are a lot of Realtors that don’t have a Brick and Mortar office.  Most have an office location, but when you are meeting with them, they are meeting with you in a “conference room” of sorts.

Who’s should I ask?

The Question of the day has to do with the Tax incentives when adding a “committed” home office.  The rule of thumb that I live by when it comes to Tax Breaks, is to speak with your Tax Professional  Explain to them what you are attempting to do and they will be the best source as to whether you can get a “legal” deduction or not.

Think twice before adding that home office. A recent study demonstrates that a home office is not where you will recoup your Santa Clarita Remodelingmoney. Of course, the reason for adding your home office may be strictly for your own personal welfare and have nothing to do with home improvement, in which case if you have the money to build the home office you’ve always wanted you should go right ahead and do so.

A recent article from Financially Fit places the home office as the worst bang for your buck as far as remodeling your home, recouping less than 50% of its investment when you sell your home. What makes a home office such a financial drain? Apparently it is too one dimensional. A room that can serve as an office, den, and media room is much more attractive to a potential home buyer.

As an overall rule for remodeling it is best to stay on the simple side of things. Anything too grand, ornate, or simply over the top, is never going to recoup its value in today’s market. If the bottom line is in sight, simply remember that less is more in the long run.

How do I find out how much my home is worth?

We have several resources for you to do this very thing.  The first is by using one of our “hands off” property value systems.

By clicking on the Aforementioned link – you will be taken to a page where you can enter specific criteria about your Southern California home and get the results in about 30 minutes.

The Second way is to shoot us an email at connor@paris911.com, include your address and anything about your home that adds to or takes away from it’s value.  Be Safe and we will speak with you soon.

Filed Under: company news, how much is my home worth, how much is my real estate worth, Real Estate Finance, Realtor, Santa Clarita CA, Santa Clarita Sellers Tagged With: , , , ,

Is the REMAX Franchise Faltering

December 8, 2011 By

Not by a long shot – in fact, the Brand Awareness has never been stronger.  Check out the following Data from REMAX’s corporate Head Quarters and see why Paris and I made the choice long ago.  Our clients benefit from our being with REMAX as do we.

Santa Clarita REMAX

REMAX of Santa ClaritaMore people go to REMAX's website more from facebook than from any other competitorOn the Web - REMAX is number 1REMAX brand is number 1Brand Matters with regard to real estateREMAX is number one as far as page views on the Internet

Filed Under: best real estate agents, Marketing real estate, Real Estate Finance Tagged With: , , , , , , , , ,

And there were Foreclosures in Santa Clarita Valley on October 13, 2011

October 13, 2011 By

Foreclosures in the Santa Clarita ValleyYour New Foreclosures alert, Paris911′s Santa Clarita Bank Owned Real Estate Alert, found a match.

Stage Radar ID Street City Zip State Type Sq Ft Beds Baths Sale Date Est. Value Est. Bid

Bank Owned 37969512 28310 MILLBROOK PL CASTAIC 91384 CA SFR 2247 3 3.00 10/13/2011 $401,179.00 $359,104.00

Bank Owned 23805993 27987 LOST SPRINGS RD SANTA CLARITA 91387 CA SFR 1680 3 3.00 10/13/2011 $327,605.00 $265,000.00

Bank Owned 23791921 26074 BATES PL STEVENSON RANCH 91381 CA SFR 2932 4 3.00 10/13/2011 $613,849.00 $498,867.30

Bank Owned 713794 20054 HILLTOP CT SAUGUS 91390 CA SFR 3027 4 3.00 10/13/2011 $447,898.00 $394,200.00

Bank Owned 184451 23119 POSADA DR VALENCIA 91354 CA SFR 1976 4 3.00 10/13/2011 $333,649.00 $390,000.00

Your New Foreclosures alert, Paris911′s Sold to Third Alert for Santa Clarita Valley CA, found a match.

Stage Radar ID Street City Zip State Type Sq Ft Beds Baths Sale Date Est. Value Est. Bid

Sold to 3rd 38946223 27044 VICTORIA LN 101 SANTA CLARITA 91355 CA CND 1556 3 2.00 10/13/2011 $342,805.00 $229,000.00

BTW – If you have been contemplating having a Short Sale Negotiated for you.  You are going to need to ask the right questions so you can make the best decisions.  Please have a look at our Santa Clarita Short Sale information center.

Filed Under: newhall foreclosures, Northridge Foreclosures, Real Estate Finance, REMAX of Santa Clarita, santa clarita bank owned, santa clarita foreclosures, santa clarita home auctions, Santa Clarita Short Sale Experts Tagged With: , , , , ,

FHA Loan Amounts are Shrinking, is that bad news for the Santa Clarita Real Estate Sellers and Buyers?

September 28, 2011 By

FHA loan limits are shrinkingWe have been published as Santa Clarita Real Estate agents once again in The Signal, the Santa Clarita Local Newspaper.  It is always our pleasure to speak about the status of the Real Estate Market.

Today the questions as posed by Jana – The Business Reporter for the SCV Signal were as follows.  This includes my responses as well:

Effective Saturday, Oct. 1, Fannie Mae and Freddie Mac will cut the size of loans they buy from lenders, forcing some future buyers into jumbo loan status.

In Los Angeles County, the loan limits for a single-family home in L.A. County is $625,500.

 1.    How much of an impact do you expect this change to have in the Santa Clarita Valley market?

As of Today, Located in the Santa Clarita Valley, cities of Valencia, Stevenson Ranch, Saugus, Newhall, Castaic and Canyon Country, we have 1338 total active listings that are on the market for sale.  Those include Single Family Residences, Condo’s, Town-homes and Manufactured homes.  When taking the new FHA limits into account we have to see how many properties are at and above that $625,500 amount.  The total number of homes in the aforementioned cities that are active right now and for sale exceeding the new FHA Loan Amount is 136(inquiry amount to 5M)

Subtracting the two figures from one another – 1338 total active residential listings minus 136 total listings over the new FHA lending guidelines equals – 1202 total listings that are within the new FHA guidelines.  With this new “loan limit” I know we are going to see “marginal impact” with the borrowers in the higher amounts.  It has been our experience most borrowers in that range also have the ability to generate conventional type lending.

When I search for those properties that are priced between the “new” FHA loan amount to where the bar was set by FHA in the past, at $729,750, That leaves us 31 total active listings that would no longer able to be purchased with the New FHA Lending limit. That would have been able to be purchased before this change.

31 is not a “landslide” – unless you are that specific home seller in that price range and your only lookers were depending on that “old” FHA Lending Limit.

2.    Of those affected, what will the impact be?

31 Sellers that have their homes listed for sale between the new FHA Limit and the Old FHA Limit – They are going to have to either reduce their sales price to conform with the FHA limits or wait for that conventional buyer or a buyer that doesn’t mind paying for the jumbo rate.

The Buyers that were wanting to purchase between the new $625,500 and the $729,750 – They are going to need to check into a 5% conventional or 10% conventional lending product (they still exist).  Or step up to a 20% conventional loan.  They might also need to “reduce” their wants if FHA is the only way they are going to have the down payment at 3.5%. 
Filed Under: company news, foreclosures, Home for Sale in Santa Clarita, homes for sale in santa clarita, homes in santa clarita, Real Estate Finance, REMAX of Santa Clarita, REMAX of Valencia, REMAX Santa Clarita, REMAX Valencia, santa clarita real estate agents, Santa Clarita real estate market Tagged With: , , , , , , , ,

Real Estate investing in Santa Clarita Valley, Time to Listen?

September 24, 2011 By

Santa Clarita CA Homes as investmentsTo Invest or not to Invest - that is indeed the question that is on a lot of people’s minds.  They are thinking they don’t want to be landlords.  They shutter at the risk involved when a tenant quits paying rent.

We learned a long time ago that in order to grow, you have to move outside of your comfort zone.  If you have been considering whether to invest in Real Estate – you will want to sit down with an Real Estate Expert and develop a Game Plan.

When it comes to real estate these days has the time come to listen to the headlines that are blaring “Time to Buy!” and “Great Time to Invest!”? Let’s face it, if you have the money to do so investing in real estate should be tempting.

Mortgage rates have dropped, again, having gone from 30 year lows to 60 year lows. What does this mean? Money is cheap to borrow, which means financing costs for real estate are lower than they have been in years.

Another great reason to invest in real estate? Rents around the country are increasing along with demand. All of the home owners who got in over their heads have been forced to rent and the increase in renters has placed landlords directly in the driver’s seat. It’s a great time to be a landlord!

Every investor’s goal is to buy low and sell high. If you are a real estate investor in today’s market you certainly are buying low, hold on to your property and eventually you will be able to sell high. Rent it and your property can help pay for itself in the meantime. Now could be the ideal time to listen to what the market is telling you.

Filed Under: real estate facts, Real Estate Finance, real estate investing, real estate prices, Realtor, remax listing agents, santa clarita real estate investing Tagged With: , , , , , , , , , ,

It’s like writing your name on a public bathroom stall

September 14, 2011 By

When you give up your personal information on the web – You must consider where it is going to end up. Are you using a system that is built to generate leads and monetize each one?

I get several calls a day from “telemarketers” working for Real Estate Lead Generation companies that want me to pay for the leads they are generating.

Here is something you probably did not know. These sales people are not from the “larger” Internet Based Real Estate companies.  Those sell your information to the agents that pay for leads as well…

No, these other companies that want me to pay for their leads are capturing your data on other “micro” type sites.

The type of Websites that can be built, optimized and added to a “pay per click” campaign to get you to click and give up your personal info.

First and Foremost, if you want to keep your personal information protected check out these tips:

  • Make sure you are using a “real and local” agent.
  • Ensure that the area they mainly service is the area you are interested in.
  • If you are hunting Foreclosures – make sure they are an expert in that field of Real Estate.
  • Ask if they have access to all listing, or if they are limited in search.
  • Find out if they also can get “pre market” listings, foreclosures/short sales/regular etc.

 

Filed Under: Custom Client Search, distressed, Foreclosures, Future Foreclosures, listing, maps, Northridge Foreclosures, Real Estate Finance, REMAX of Valencia, Santa clarita short sales, Short Sales, valencia ca bank owned, Westridge Foreclosures Tagged With: , , , , , , , , , , ,

How hunt a Foreclosure Home – There are three ways!

September 12, 2011 By

Here are the links to the three ways to find a foreclosure home. Both where we are Head quartered with RE/MAX of Santa Clarita and in the Rest of Southern California:

Each of these ways work well as long as you have selected an agent that has access to all three systems.

The other key component with searching for Foreclosures also has to do with the agent you select.  Hunting other Foreclosures that are “not on market” as of yet takes tact, patience, time and finesse.  Especially when hitting up the banks directly to get a “pre-marketing release”.

It can be done, but it does take work.  But isn’t that the job we signed up for?

Be Safe and let us know where you want us to hunt for a Foreclosure for you.

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Filed Under: acton foreclosures, agua dulce foreclosures, canyon country foreclosures, castaic foreclosures, distressed, Foreclosures, Future Foreclosures, market update, newhall foreclosures, Northridge Foreclosures, Real Estate Finance, Real estate owned, santa clarita foreclosures, Santa Clarita Short Sale Experts, saugus ca foreclosures, stevenson ranch foreclosures, valencia ca bank owned, valencia ca foreclosures, valencia ca real estate owned, valencia ca reo, valencia foreclosures, Westridge Foreclosures Tagged With: , , , , , , , , , , , ,

What are Buyers Agents in Real Estate and is there any advantage to using them?

August 26, 2011 By

Went into some detail regarding Buyers Agents – What that title usually means and what their function is.  I also spoke about the “roles” in real estate and how buyers agents might be disadvantageous to utilize.

If you want to search for Real Estate like Real Estate agents do – Have a look at our listingbook site.

 

Filed Under: Buyers, Real Estate Finance Tagged With: , , , , , , ,

They don’t only mean buy local – Search Local as well…

August 8, 2011 By

Remember the ad campaigns?  Buy Local. Help the Local economy and local Business owner by shopping and buying local.  It does work and we have that very same drive in the Santa Clarita Valley communities.  Buy Local – I get it.

What about Searching.  Why would you want to use Local Sources?  Because you don’t want your personal and private information sold to the highest bidder.  When you want more information about a specific property that is for sale, you are running the risk of having your personal information resold several times.  Resold to the hungriest and highest bidder.

Some of the “highest bidders” are not “local real estate agent”.  They are referral farms and re-selling your information again.  Back in the day, I could buy hundreds of dollars of “pay per click” advertising and then re-sell it at a higher price.

Your personal information is all too valuable for you to have sacrificed on the “vendor chopping block”.

Filed Under: Business, Buyers, market update, Real Estate Finance, remax relocation, Santa Clarita, Santa Clarita Home Prices, Santa Clarita Relocation, santa clarita rentals, Valencia Relocation Tagged With: , , , , , ,
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Remax of Santa Clarita. Each office independently owned and operated. 25101 The Old Road, Santa Clarita CA, 91381.
(661)284-5429. DRE info: Paris MacIvor (01256647) and Connor MacIvor (01238257)