San Jacinto Real Estate Blog

How to Buy a Short Sale House - San Jacinto, CA

Sun, 11 Oct 2009 21:09:33 -0500

It is true that the Active Listings in the MLS are dominated by Short Sales listings these days and on the surface they appear to be some really great deals. However, just like your Highs School Prom Queen, looks can be deceiving (my apologies to all the H.S. Prom Queens who read this...and their Kings...and the rest of the Court, as well).

Short Sale homes are typically are a better buying decision for an investor looking for investment property than for a first time homebuyer. It still continues to amaze me when a first time homebuyer that is in a rush to move will ask me if I know "How to Buy a Short Sale House for Sale in San Jacinto?"

Short Sale homes typically will be occupied by the owner - but not always. Today, more investors are trying to liquidate their investment properties through the Short Sale process.

WHAT DOES SHORT SALE MEAN?

Before I can educate a first time homebuyer I must first make sure that they truly understand the meaning of the term that is tossed about so casually these days so that they understand what is a short sale.

I offer a short sale definition that simply lets the prospective buyer know that the seller owes more on their mortgage than the home is worth and in order to sell it, the current owner needs to obtain permission from the lender - often a bank.

I'll elaborate, when questioned further that there is an entire short sale check list that each lender has that is unique to them. So what Countrywide, Bank of America, Wells Fargo, One West Bank or USAA expect from short sale REALTORS® is completely different from one another. There is no magic bullet that can speed up the short sale time line or give anyone a special passage to buy a short sale home.

SHORT SALE REQUIREMENTS

As previously stated, each bank will have it's own unique requirements for working with them to liquidate a short sale mortgage.

One of the universal tasks that a specialist in short sale realestate must address is the hardship letter that must be prepared documenting why the sellers unique circumstances should be considered for leniency in the forgiveness of what may be a huge amount of debt. To complete the short sale package, the hardship letter must not only tell the story of woe, but must document the circumstances with pay-stubs, bank statements, tax returns, medical records and anything else that can document the homeowners situation. It is necessary to ‘un-qualify' for the loan and PROVE that the homebuyer CANNOT afford the current mortgage. Loss of equity doesn't cut it.

Many lenders will provide the short sale realty company with a complete sample short sale package to improve the chances of getting the short sale package approved.

HOW LONG WILL IT TAKE?

This is perhaps the biggest reason I try my hardest to discourage first time homebuyers, who have or want to move soon, from getting involved in buying a short sale and why I'll do almost anything if it means avoiding a short sale.

The timeline can be very long - typically in excess of two months. When an offer is made by the buyer and their real estate agent, the listing real estate agent must now complete their "short sale package" with their hardship letter and all of the supporting documentation, which should include some preliminary title work to show any other liens that may be on the property as well as the contract that needs to be in line with market value of the short sale house.

On the receiving side the negotiator for the bank receives the package - but typically won't even take a look at the contract until close to the date when the bank is scheduled to take the home back, through the foreclosure process. You see, these bank negotiators are over-worked. They have a very heavy caseload and cannot spend a lot of time on any one file. The other consideration is they pretty much all work on some sort of bonus program - so the only files they are really going to get deeply involved in are the ones where they believe they will be able to close the deal and earn that bonus before the bank takes the home back in foreclosure and moves it to the REO department for liquidation...or worse sold as part of a bulk sale to short sale bank investors with a pool of other short sales that the bank chose not to negotiate.

The Short Sale process time line can move quickly once in the hands of a competent bank negotiator. So quickly that it is not uncommon for the bank to accept an offer and give the buyer 10 days to close escrow. So the buyer has to have their financing in place, which is why short sales are great investment vehicles for bank short sale investors but for the first time homebuyer who typically does not have a stash of cash and must rely on traditional financing methods which will require a decent credit score, a down payment and closing costs...not to mention some funds in reserve for any rehab work that may need to be done.

WHAT ARE THE CHANCES OF GETTING MY SHORT SALE PROPERTY?

There are those clients who just won't take no for an answer and God Bless them. After I painstakingly go through the details of the process, I am still asked about their odds of getting into a short sale property.

I'll make one last effort to enlighten them and ask the first time homebuyer if they understand what the short sale requirements are and if they are ready to go down the emotional roller coaster ride that will take two to three months...knowing that the statistics are against us. More often I'll get a fairly complete recap along with a, "but we just love this house, and it's in the neighborhood that we both love. Can't we just try?"

At this point, I say of course we can...as I dial the phone and ask one of my buyer agents to meet us back in the office...

Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550

This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

A Blogger of Two Cities - Hemet & San Jacinto, CA

Sun, 11 Oct 2009 18:04:29 -0500

Today I reached a fairly amazing milestone in my blogging history - I posted my 500^th blog post to my first and primary blog on ActiveRain.

I have lived in Hemet, since 1998 and just moved 5 miles north in the Hemet - San Jacinto Valley in July of this year, from the unincorporated rural area known as Valle Vista into a tract home in the city of San Jacinto.

Two months earlier, I moved my office from my home into a retail center, the San Jacinto Retail Center, anchored by Fresh and Easy, Jack in the Box, The Bull Pen Sports Bar & Restaurant as well as my next door neighbor, STARBUCKS. The San Jacinto Retail Center is right on the border with Hemet, at the north east corner of Esplanade and Sanderson.

My plan is to build my internet presence for both cities; whereas in the past over 90% of what I did was focused on Hemet.

The Hemet - San Jacinto Valley really is one urban community surrounded by a vast agricultural region of farms and dairy's. There is not the much difference between Hemet and San Jacinto - but then again they are two communities of stark contradictions to one another. As a former resident of the rural east end of the valley, with a Hemet mailing address and now a resident of San Jacinto, I have truly become a local area expert for the entire valley.

THE FUTURE

My plan for blogging now will be divided between my primary Hemet blog and my newly dusted off San Jacinto Blog, where I plan of serving the community with the latest market reports as well as stories about local events and landmarks.

Some of what you read here will be unique to this blog while there will be articles that have a very close resemblance to articles I publish at the other blog. Both are important and both will be maintained.

I am of course, open to suggestions from anyone on topics to write about, as I share my insight to the real estate market in general as well as life in San Jacinto.

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

41018 Sunsprite St., Lake Elsinore CA 92532 - 3613 Sq Ft of Upscale and Highly Upgraded Canyon Living Space - Built in 2006 - ONLY $299,900

Sun, 22 Jun 2008 23:34:08 -0500

John Occhi | Century 21 Crest | 951 443-6259

41018 Sunsprite Street, Lake Elsinore, CA

ROSETTA CANYON HOME - New Construction - Looks Like it's Never Been Lived In - Over 3600 Sq ft asking only $83 per sq ft!

4BR/3BA Single Family House

offered at $299,900

Year Built	2006
Sq Footage	3,613
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	3 Car garage
Lot Size	5,662 sqft
HOA/Maint	$125 per month

DESCRIPTION

Although it may be affordable for the first time home buyer – this is definitely a home for that special buyer who feels as if they have “Arrived”. That is just how you will feel when you first enter this magnificent home. Your first impression will be that no one else ever lived here-it's breathtaking. The new owner for this home will definitely have had a list of must have features they used to eliminate many other homes. Lets see how this stacks up…Go ahead and name your pleasure-Large Kitchen-it's yours with a granite covered island that includes the sink and dishwasher, lots of cabinets and granite counter space with a full granite backsplash. Gas Cook top, built in microwave (and no, not that cheesy one over the cook top that doubles as an exhaust fan) this one is built into the cabinets over the built in oven. There is a smoked glass door on the pantry. OK, So what's next-Large Family room with a raised hearth fireplace and a media niche - yup we got it. Next...OK, a large master suite with its own step down retreat from the oversized bedroom area, then there is the large walk-in closet. The master bath has a separate glass enclosed shower and large garden soaking tub...and double vanities with a make up station-yeah, we got it here. Heck, we even have a large upstairs laundry room that has lots of cabinets and an oversized laundry room sink for you, so quit wasting your time reading and schedule an appointment to see this steel of a deal before someone else does! Oh, wait you want to know about the landscape–well the front looks great. The best part is the back yard hasn’t been carved up with someone else’s idea of where and how much concrete is needed back there–this is a clean palate for your own imagination run wild and design the perfect entertainers back yard or your private retreat – your choice. Buyer to Verify all Info found in the MLS - Sold AS-IS. HOA to be verified. Make sure you check out the pictures for lots of interesting details.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Walk-in closet	Tile floor
Family room	Living room	Office/Den
Dining room	Dishwasher	Stove/Oven
Microwave	Granite countertop	Laundry area - inside
Yard

OTHER SPECIAL FEATURES

Convenient commuter location–less than 5 minutes to the freeway

Kitchen Has Everything - Granite, Upgraded Built-Ins, Island, Pantry

Energy Effiicient - Dual Zone Air Conditioning

Cabinets, Cabinets and More Cabinets - Everywhere are Cabinets

Computer Nich for Internet Safety

Prior Owner Taxes Assessed at over $521K = This is a STEAL

Close To Casino - Outlet Malls and More

ADDITIONAL PHOTOS

Seller contact info:

John Occhi

Century 21 Crest

951 443-6259

For sale by agent/broker

Equal Opportunity Housing

Posted: Jun 22, 2008, 7:20pm PDT

reo,real estate owned,sunsprite,bank, foreclosure, lake elsinore, property, real estate, riverside county,realtor

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Critical Mistakes for the Investor to Avoid: The Loan

Sun, 19 Aug 2007 17:49:05 -0500

Critical Mistakes for the Investor to Avoid: The Loan
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

Many real estate investment mistakes can be avoided all together if the investor simply compares apples to apples when considering different loans.

I know, it sounds obvious, but sometimes I think loan packages are as confusing as buying a mattress. You know, you have seen the news expose on the mattress industry where a manufacturer will produce the exact same mattress and sell it under a different model name to each of its retail distributors so the retail guys can advertise the lowest price on that model...because it only exists in that one store.

And that's the way loans can be spun. The same item can be called so many different things and the pricing can either be in basis points, a percentage or even a flat dollar amount - almost impossible for all but the sharpest of experienced investors to sit down and truly compare loan opportunities.

Now, I am a REALTOR®, I don't pretend to be an expert on mortgages - those guys make enough money putting together loans that they don't need my input any more than I want your lender driving around with us throughout Riverside County or any where else in California, looking at investment real estate. They do their thing and I do mine. Together we form your team - so it is important that you work with a lender that can give it to you straight and if there are variances in any of the products he suggests to you, make him break it down so you are comparing apples to apples and leave the oranges in the trees.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Critical Mistakes for the Investor to Avoid: Down Payment

Sun, 19 Aug 2007 14:58:07 -0500

Critical Mistakes for the Investor to Avoid: Down Payment
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bite by Clicking Here

When an Investor is looking to purchase Investment property there are many different factors to be considered in every transaction - especially true if we need to make sure there is a positive cash flow every month.

One such critical decision that must be reached before the offer to purchase real estate can be consummated is the buyer must determine how much of a down payment he (or she) will be putting into the deal.

In the past, investment property typically required a minimum 20% buyer contribution - which made a property cash flow much easier. More recently many investment loans were available with only 90% cash-in. There have even been some creative loan packages that would allow a well qualified investor to finance an investment property with 100% financing - although I do believe that has disappeared fro the time being.

Lets assume a 6% interest rate on a $300,000 investment. A 100% financing would require the buyer to pay $2,206 a month in Principal, Interest, Tax & Insurance (PITI). The same home with a 10% down-payment would reduce the monthly PITI down to $2,026 and a 20% down-payment would then bring the monthly obligation down to only $1,846.

If this property will only rent for $1,500 a month, then you had better be prepared to step up the down payment to a whopping 39.33% or $118,000 if you want a 2% positive cash flow every month

So. I am hoping that you can see how a simple adjustment to the amount of money you put down on a deal will have a significant impact on your monthly cash flow.

I hope this little lesson will at least enlighten you to fully analyze your financing for your next real estate investment opportunity.

If you would like to know how I can help you achieve your investment objectives please feel free to contact me directly. I am not a "guru" selling books, CD's, DVD's and I don't even have my own seminar tour to invite you to. Like you, I am looking for serious individuals to partner with. My role is REALTOR®, focused primarily in Riverside County but licensed to buy and sell real estate all over the State of California... and yours is Investor. Yes, we can both do our job without the other, but why? Together we can create some much quicker profits for each other. So please, if you want help, consider me as your REALTOR®

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Mistakes that Can Really Bite: Interest Rate

Sun, 19 Aug 2007 10:45:21 -0500

Investor Mistakes that Can Really Bite: Interest Rate
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

Minor mistakes can often make or break an otherwise great real estate investment deal. There are some very subtle differences in the way an investment deal is packaged that can have a ripple effect and can literally either cost or save you thousands of dollars over the lifetime of the particular deal. Conduct each real estate investment deal the same as the one before it and you will multiply either the savings or expense associated with the way you structured the deal.

Interest rate is one of the most critical factors in a long term "buy and hold" real estate investment. If you end up financing the deal for the wrong interest rate on your mortgage, it will cost you thousands and thousands of dollars over the life of the loan and real estate investment property.

The right interest rate can make the difference between positive cash flow and negative cash flow. Yes, you will still generate equity over time with most real estate investment deals, but having a positive cash flow is often the make or break criteria when analyzing an investment opportunity.

I hope this little nugget will at least cause you to think about your financing for your next real estate investment opportunity. If you would like to know more please feel free to contact me directly. I am not a "guru" selling books, CD's, DVD's and I don't even have my own seminar tour to invite you to. Like you, I am looking for serious individuals to partner with. My role is REALTOR®, focused primarily in Riverside County but licensed to buy and sell real estate all over the State of California... and yours is Investor. Yes, we can both do our job without the other, but why? Together we can create some much quicker profits for each other. So please, if you want help, consider me as your REALTOR®

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Realtor Consultant to Foreclosure Investors
Mission Grove Realty

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

<> CAUTION: GRAPHIC PHOTOS Dream Home or Nightmare?

Tue, 31 Jul 2007 01:33:48 -0500

Dream Home or Nightmare?
by John Occhi, Hemet REALTOR
Mission Grove Realty

Working with a lot of Short Sale and REO properties there is always the risk of a health hazard when entering a vacant home for the first time. You just never know what you might find.

Have you ever opened a refrigerator in July after the electricity has been turned off for a week? How about if it was stocked with opened dairy products? Maybe a few meat products? Some decaying vegetation of some sort? Not to mention all the fuzzy green and white stuff that seems to be growing everywhere...?

If you ever have the opportunity, I hope you are wearing sandals; otherwise it will probably knock your socks off.

Not All Health Hazards are Booby Traps

Unfortunately, many leaving the home under less than ideal circumstances will resort to certain booby traps that can really get very nasty.

One of the biggest problems that neighborhoods face when homes are abandoned is the pool. It becomes a breeding ground for mosquitoes and the Nile virus and other deadly diseases can easily be introduced

Is this Your Dream Home?

Imagine moving onto a quite residential street where your neighbor across the street has a magnificently manicured lawn and 20 palm trees outlining the property. It is beautiful and you are so proud to be in such a wonderful neighborhood full of beautiful homes.

Then one day, you watch your neighbors move - using a rental truck. They don't have a crew that brought in your furnishings. No, there are several people helping out, but they really don't look very organized. They are getting rowdier and rowdier as the day moves on and more cases of beer arrive. You find it strange, since there is no real estate sign in the yard...but you never got to know them, so you don't give it much of a thought, other than you home the new neighbors will be nice and have kids to play with yours.

A couple of weeks go by and the lawn is getting a bit overgrown and the weeds are popping through the planters. You still don't think much, after all its only been a couple of weeks, right?

The weeks slip into a month and you notice the lawn is really looking overgrown. It now has it's own weed problem and turning brown, after all it has been a hot dry summer. You figure out that no one has been watering, since even the palm trees are losing their luster and turning brown at the tips of each palm.

One month turns into two. You hear the kids telling ghost stories and you are now really concerned. There is now no chance in the world that the lawn or the pretty flowers in the planters will ever come back and those palms look like they could go up in a blaze if so much as a loose burning cigarette butt found it's way near them.

Living in the desert, you never thought mosquitoes would be a problem. It turns out the haunted house has a haunted pool in the back yard that looks like the Irish Beer you drank last St. Patrick's Day - only much worse.

The fruit from the trees along the side yard have become over ripe and fallen to the ground creating a mess and attracting all sorts of bugs and vermin.

You wonder if this once beautiful home will ever sell and be restored to its former glory. Then the long awaited real estate sign goes up and you are hopeful. But nothing happens - other than another house down the block is about half way through the same cycle - you wonder if maybe that lawn could be saved. You ask yourself, "Why did I ever move to this dumpy neighborhood?" as you swat away the buzzing mosquito and watch the large blackbirds sitting on the fence across the way - and now you wonder what died in there.

The truth is the house has died and it is taking the neighborhood with it.

I hope this never happens in your neighborhood - but chances are it already has.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Hemet CA Real Estate

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Mistakes that Can Really Bite - Contractor's Fees

Mon, 23 Jul 2007 18:20:26 -0500

Investor Mistakes that Can Really Bite - Contractor's Fees
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

Don't get me wrong, contractors earn their money, especially if you negotiate fairly and have a clear understanding of what will be done with what materials and how much you will pay.

The problem that I have fallen victim of and seen on many occasions is allowing a contractor to be paid in full before the job is done. I don't know what it is about these guys, but they always seem to have a reason why they need to get paid, as the job is nearing the completion.

It is typically some hard luck story. They will usually come in and work really hard for a day or two and then say that they need some more money because... maybe it's one of their guys or their wife or ... who cares - it's an excuse.

What will undoubtedly happen is the contractor will get your final payment and then never come back. Maybe, all they have to do is the job clean up. Maybe they just need to put up the finish trim. Who knows? Really, who cares?

So do yourself a favor and NEVER pay a contractor until the job is finished - 100% satisfied. Don't ever pay a licensed contractor in cash. When you cut the last check, wait a day after completion and then put it in the mail. This way you are sure you are satisfied with everything.

If the final payment is no less than 5% or 10% or even 20% of the job, it is enough to make sure the contractor is there - after all, you are holding his profit!

There is not much more to say on this topic - just be careful in your negotiations and job management and the cost of the contractor should be nothing more than a legitimate business expense for your real estate investment.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Mistakes that Can Really Bite – Tenant Screening

Mon, 23 Jul 2007 11:07:23 -0500

Investor Mistakes that Can Really Bite – Tenant Screening
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

If you are going to invest in real estate you are going to have to deal with a tenant – sooner or later. Even in your perfect business model of flipping properties, every now and then you are going to get stuck holding the bag longer than you wanted to and the only way out will be to rent the place.

Perhaps the deal is such a good one that you end up wanting to keep the property – maybe you have some insight on future growth and believe you will see great appreciation in a short time, if you could just hang on to the property.

Tenants are not all bad. Many times they become your buyers and in other circumstances, they have friends who are in similar situations and looking for a good place to live – so they refer them to you, because you are a fair and honest landlord who does a good job maintaining the property.

So yes, sooner or later you will deal undoubtedly deal with tenants.

When you do deal with them never let your first impressions guide you. When folks are looking to rent a new place, they put on their very best behavior – sort of like a first date. Remember, what you see is not always what you get.

You may want to check out the article I wrote about Rental Agreements and repairs – you can follow the link to:

Investor Mistakes that Can Really Bite - Tenants

CREDIT CHECKS

So, you will want to check them out. You should have a local Tenant screening service in your area. This is a service that at a minimum will check the public records for your county to see if the applicants have been evicted form other homes or apartments. You can expand the search to more counties and even the statewide and a national level. Each expansion will cost a little bit more money – but typically well worth it to spend it now, then later.

These services will also be able to provide you with credit checks and even criminal background checks, for an additional fee. If you have many units, you may be able to work out a volume deal.

Don’t be afraid of spending this money – heck, you can even collect it from the applicant as a processing fee, application fee or even call it a credit check fee. In most cases they are not the uncommon – and since it is time consuming, you can even add on a few extra dollars for your time.

VERIFY YOUR APPLICATION

It has always been easy to put in friends as your previous landlord or employer to verify the info that has been submitted to you. Today with all of the cell phone numbers we have access to, it is very easy to verify your won application – so check it out for yourself and not with just a phone call.

To verify the current landlord and the reason they are leaving, you can run a Property Profile that your Title company can provide for the address the applicant is moving from. Contact the owner – by maid if need be, but contact them. Drive by the place and make sure your tenant is really living there. If it is too far to drive by, send a postcard with the words “ADDRESS CORRDECTION REQUESTED” at the bottom of the envelope. If it comes back with any other info – then you have a flaw in the application.

Do the same with the Employer – look them up on Google to make sure they are a real company. Contact the personnel department if they have one or call a publicly obtainable number – not the one on the application. Check out what you need to know. If you need to submit in writing – take the time and do it right.

NEVER MAKE A RUSH DECISION

Finding the right tenant can make or break you as a landlord and real estate investor. In California, a tenant who has been educated by watching Jerry Springer, Judge Judy and other day time TV Shows may be able to successfully stretch out the eviction process for 6 months or more – and that’s six months of no rent, on top of the month they missed before you started the process.

Remember that lost cash flow is gone forever. Yes you may end up with a judgment –but the probability of ever collecting it are slim, so take your time and carefully screen your tenants and select the right one for your investment property.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Until Next Time, Have a Blessed Day,

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Mistakes that Can Really Bite - Tenants

Fri, 20 Jul 2007 02:34:59 -0500

Investor Mistakes that Can Really Bite - Tenants
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

All Real Estate Investing boils down to one of two strategies. Granted, their are many subsets of each real estate investment strategy - but every investment is either a "Buy and Sell" investment scenario or a "Buy and Hold" your real estate situation. What else can there possibly be?
I prefer my involvement to focus on the quick cash flow "buy and sell" strategy - or flipping as it is often called. Flipping will generate huge amounts of cash flow, if done properly. I do believe though that the "Buy and Hold" method of real estate investing is the true path to long term wealth.

However, like so many others in the industry, I have my reservations about being a landlord and having to deal with tenants. Well, I recently had a conversation with a dear friend of mine who has a number of rental units here in Hemet, CA. He assured me that he never has a problem with a tenant, because he trains the right from the beginning.
His first advise is to never use a boiler plate rental agreement that you pick up for free or inexpensively as part of a catalog of forms. He tells me that like everything in life, you get what you pay for. He has a custom agreement that is revised annually by his attorney, accounting for every change in the law. He had his agreement crafted by an attorney and he has never lost in court with it yet.

When I asked to see what made his agreement so special, he informed me that based on the terms of his relationship with his attorney, the only way I could see it was if I were to rent a unit from him or pay his attorney. Smart man wh9o knows how to protect his assets, but now I want to go to the local court house and see if I can pull the file of an eviction he just finished, to see if I can find a copy of this "special agreement". (But that wouldn't be very Christian of me, now would it - I have no use for it, I just want to see what it says and I am not going to rent from him just to find out!).
The second issue my friend shared with me is training the tenants to take care of his property. If he ever has a tenant do any damage and calls him to fix it - he does and then he bills them for it. Stopped up toilet because of a feminine napkin - that will cost $75. Broken Window - that's $75.Replace the garbage disposal - $150.
He says if you don't charge them then you are telling the tenant they don't have to take care of your property and that you are giving them permission to treat you like their personal maintenance company. Next thing you know, you are getting calls at night, then the weekends and before long, you'll get a call on a holiday. Well, he charges a 50% premium for after hours and a 100% premium for holiday or Sunday emergencies.
My friend tells me his favorite is when he gets a call telling him that the rental unit has been broken into. He'll question what was taken and the tenant typically says nothing, but that either a window was broken or a door needs to be repaired. He knows the answer to the next question before he asks if they filed a police report. "Well, no" he is told and so he bills them for the repair - often upgrading the broken door to a brand new one. He tells me that it is very rare a tenant will file a false police report because they really don't want the police snooping around their rental unit.
My friend loves Hemet CA rental units - he has me looking for a nice four-plex to add to his inventory of over 60 rental units in Hemet California. He promises to teach me more on this topic and what I learn I'll bring back and share with you, so come back and check often - better yet, go ahead and subscribe to my blog to keep up to day.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550

This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Mistakes that Can Really Bite - Contractors

Fri, 20 Jul 2007 02:01:17 -0500

Investor Mistakes that Can Really Bite - Contractors
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
View More Articles on Investor Mistakes That Can Really Bit by Clicking Here

I thought I would start a series of articles that if they only help one real estate Investor or just one Hemet homeowner than I will be satisfied. The series will document mistakes that I have made and mistakes that I have seen my Real Estate Investor clients make when purchasing real estate in Hemet California and other parts of the state as well.
This first article is inspired by a recent event that I choose not to get into. Let's just say that communication is a critical element to any...scratch that EVERY real estate investment deal. Without effective communication, it is a case of the blind leading the blind...or worse yet a "He said - She Said" scenario.

In this case, I am referring to hiring a contractor and having the contractor put in writing exactly what they are planning on doing; what materials they are planning on using; and how much they plan on charging you when the job is done.
Lets examine this one step at a time.

What Will the Contractor Do?

Each step is just as critical as the next, so lets just say that it is extremely important that both you and the contractor know exactly what needs to be done. Describe in detail each phase of the project and avoid ambiguous words when negotiating with a contractor just as you avoid ambiguous words when negotiating the purchase of a home from the home seller - be precipice.
What does it mean to refinish an antique claw foot bathtub? Is it paint on surface? Is it a one step, two step, three step or more process? How will nicks be handled - painted over or filled and sanded to a flush surface?

You can see how ambiguous a term like "refinish" is and how much one method over another can have a dramatic reflection on both the finished product as well as the finished price!

What Material Will Your Contractor Use?
Again, just as critical as each of the other negotiating steps -without a clear call out of parts and materials you are leaving yourself wide open for cheep and shoddy work.
You shouldn't need an example, but what the heck... The work order calls to tile the kitchen floor. Does it call out the size of the tile? The tile material? Designer brand? Color? Grout color? Layout pattern? . . And how much overage do you need to buy and then who gets to keep the extra materials at the end of the job?
It is more than common to talk about different scenarios when discussing a bid. It is not uncommon for many of those scenarios to be just that, "talk". When you agree on an action - write it down. When you agree on a particular product - write it down.
This Will Cost "HOW MUCH"?

There is nothing worse than a job coming to an end and the contractor wants to be paid and he gives you your invoice for a bit more than you expected. You tell him this is not what you discussed and planned on.

This happens when the work exceeds your greatest expectations or when the contractor is lucky you don't turn him in to the State Contractors Board for shoddy work- he wants more than you thought you agreed on.
If you consider yourself a successful Real Estate Investor or even just a good business person you should definitely know that any agreement for money needs to be in writing. This is why each of these three areas is so critical and interdependent on one another.

So, the best way to avoid these costly and time consuming mistakes (not to mention the energy they suck right out of you) what you agree to with a contractor needs to be put in writing and make sure you include exactly what will be done and exactly what materials the contractor will use in your real estate investment project. Then, make sure you both agree on a price and then why don't you both sign it and avoid the heartache and confusion down the line.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What Can Go Wrong When Investing in Short Sales

Mon, 16 Jul 2007 23:36:09 -0500

What Can Go Wrong When Investing in Short Sales
by John Occhi, Hemet CA REALTOR
Mission Grove Realty

View More Articles on Investor Mistakes That Can Really Bit by Clicking Here
There are many opportunities for Real Estate Investors today and it seems like the latest buzz word is SHORT SALE.

There are a several very good reasons for this.

1) They are in abundance: Just about every street in Hemet and the rest of Southern California either has had a short sale, has a short sale in progress or will have one in the next year. Not only are they abundant today, but the well is deep; and

2) They are a very lucrative market where the investor can literally create a handsome amount of equity out of thin air for about 20 to 30 hours of work spread out over a month or two; and

3) It doesn't take a brain surgeon or rocket scientist to figure these out. This means they are relatively easy to facilitate, as long as you can keep yourself organized and be faithful to a timeline; and

4) If done properly, these really are one of the easiest ways of controlling property and profiting from it without any money out of your pocket. I know, you've watched the late night infomercials and bought programs before, but I'm talking about legitimate opportunities that are all around you and really can be structured with no money out of your pocket.
Short Sales Are Not a Piece of Cake or a Walk in the Park
Just because Short Sales are abundant and easy enough to learn with minimal risk does not mean they are for everyone or that short sales don't fall apart at the last moment.
Let's examine the most common areas of a Short Sale deal falling apart.
1) NOD - The only time a short sale will take place is when the homeowner is in default and has started the foreclosure process. Prior to the NOD being filed, the lender is still optimistic that the loan relationship can be salvaged. Without a Notice of Default, there will not be a short sale.

2) Need or Hardship: The homeowner must be able to document a legitimate hardship. The lender will not grant a short sale just because the borrower is upside down and wants out. They must be able to prove that they cannot afford the home, under any circumstances. The homeowner needs to be cautious, because if they stretched the truth in obtaining their loan and now provide conflicting information from what is on the loan application the borrower may be providing the necessary documentation and evidence to convict them of mortgage fraud.

3) Junior Loans: There are typically a second or even a third loan that must be negotiated along with the first. There may also be tax liens and other encumbrances against the property that must be negotiated.

4) BPO: The BPO or Broker Price Opinion is similar to an appraisal, conducted by a local REALTOR. The lender will use one, two or three of these to determine the actual current value of the property. It is always best as the buyer to be present to help influence the BPO. If the BPO comes in too high, you will never get your deal through.

5) Lenders Approval: The Short Sale is 100% dependent on the lender buying off on your short sale package and offer. What you present has to make sense. Remember, you are trying to convince them that your offer is better business than taking the home back and selling it as an REO property.

6) Repairs: One of the most critical aspects of buying any investment property is determining what the cost of the repairs will be. If the home is totally thrashed, that is OK as long as you take into consideration the actual cost to rehab the property. This doe not mean that you are going to rehab it, but whoever does cannot turn up and hidden problems. Spend the time and know the property before you lock yourself in.

7) Tax Consequences: There will be times when a homeowner balks at a short sale offer when they consider the tax consequences that they may have to endure. Current law calls for the mortgage lender to send the IRS a 1099 for the debt that has been written off - reporting it as taxable income. This single reason scares more homeowners into delaying; thinking they can find another way out - only to have the foreclosure precede and they still end up with the tax bite.
All of the above obstacles can be overcome, if they are raised. Knowing what they are ahead of time and determining how you will handle each ahead of time is an excellent strategy to move foreword and close multiple preforeclosure short sale deals each and every month.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Is This Kinky Loan for You?

Sun, 15 Jul 2007 17:20:40 -0500

Is This Kinky Loan for You?
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
I was reviewing some of my previous writings on other sources whan I came across this article on a very kinky loan program that I had written about last December, Just when we thought we saw the Kinkiest of Loans....
Jeremiah Miller, President of Mortgage Payment Deferral, Inc. has announced a patent pending program that will allow homeowners the ability to defer their mortgage payment for a full year - that's right defer your mortgage payment for a full year! He says that it will work with ANY type of mortgage. The program has 2 names that it will be marketed under - first for those who prefer the English language, there is the "12 Month Deferral" if you prefer to sound cool and quote jargon then you're in luck because the program is also known as the "12MoDef".
According to the website, there are now 6 mortgage companies writing these loans and the process for a mortgage broker to get involved can be found on the website.
Miller says, "I was inspired to create 12MoDef with the idea that a year without mortgage payments could give someone financial freedom and stability for a better future." He goes on to say, "Everyone has their own reason for using 12MoDef. Many of our clients are making job changes, starting families or struggling with a new business venture; while some are being crushed by meeting the monthly financial burden of their mortgage payment AND credit card debt. A year without the stress of a mortgage payment allows people to reassess their financial situation and regain control of their life again."
The idea took three years to bring to fruition. Needless to say, he found his share of naysayer's. He is quoted as saying, "During our initial research and development of the product, we were informed by many banks, lawyers and title companies that the idea was impossible and we were basically wasting our time. We refused to believe it and fortunately we refused to give up. Now, all of our hard work and dedication have paid off with the inception of this truly wonderful product. Without a doubt this has been the most rewarding endeavor in my entire career."
The program acts by creating a trust with some of the equity you have in your home. The money in the trust account is invested and earns an ‘aggressive' interest. The program guarantees that the trustee will make each payment, on time, every month - to the correct lender.
I'm not sure, but my guess is if you enroll in this program, then you'll be able to include 2^nd and even 3^rd mortgages - assuming you have the equity.

What brought me back to this article is the work I am doing with pre-foreclosure homeowners. If they have any equity, this might just be a great way for them to salvage their home and at least get it ready for a reasonable sale - again assuming they have the equity.

The one limitation I see is that the program only works with fixed rate loans - as they have to know how much money goes into the trust. If the payment were to escalate - then they can't predict. So, if the loan payment is fixed for a sold year, then the max this loan program could be implemented for would be the 12 months of fixed payments.
Each month the homeowner then receives a monthly statement showing the balance of the trust as well as all activity on the actual mortgage. At the end of the 12 month period, the trust simply closes and all remaining funds, including the earned interest, are returned directly to the homeowner.
Although the program is know as a 12 month program, it is actually available for any time period spanning 3 to 36 months.
I am not endorsing this product, so I won't be telling you where to sign up. What I do know is that the company is aggressively looking for brokers and lenders to market the program.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What about a Short Sale Package?

Sat, 07 Jul 2007 17:40:26 -0500

What about a Short Sale Package?
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

Every investor who wants to do short sales as a from of real estate investing knows that one of the very first steps is ordering the Short Sale package direct from the lender. Don't forget, when there is more than one lender, you need to order the short sale package from both lenders.
Each lender has their own formats of how they want the package submitted for their review and ultimate approval. Yes, you will find similarities between various lenders - but you must understand and respect they are individual entities and want things done their way - if you want them to cooperate with you.
It is critical that your package be complete. You will find that time is not your ally and if they have to come back to you for additional information - or worse information that they specifically requested and you failed to provide, then you can consider that to be the kiss of death.

Remember, Time is of the essence!
A universal truth is that most lenders will want many of the same things in their short sale packages for homes in foreclosure that they are considering a short sale alternative to. Several of these items will almost always be:

2 to 3 months of pay stubs

2 to 3 months of bank statements

A hardship letter from the homeowner (handwritten is always best)

A signed purchase contract with as few contingencies as possible

A HUD-1 - or a Net sheet showing the mortgage lender exactly what they should expect to receive
Then there are items you can add to beef up your offer and substantiate your offer so that the bank is more compelled to allow you to purchase this property for less than what is owned on it and even for less than a fair market value. You may consider including the following documents:

1 to 3 estimates by licensed contractors - if the home needs more than a coat of pain and a bag of grass seed.

Lots of Photographs to Identify problems with the property

A Market Analysis prepared by a REALTOR As to what the home is actually worth - including a minimum of 3 ACTIVE comps and 3 SOLD Comps

Your Own BPO if it works for you

If the local school district is below the 50^th percentile - then send a copy of a schools report

You might find out about crimes in the neighborhood. If there has been a particularly gruesome murder or some other violent crime in the area, in the last year, find a newspaper clipping (web based is fine) detailing the event - include a Google Map to show how close to the subject it is

Anything that you can document that will detract from the value - whether it is the home, the neighborhood or even the community at large.
If you follow these guidelines, and you submit actual factual information - you should not have a problem working out a fair deal for all of the parties concerned.
Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR
Loss Mitigation Consultant <
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What Do You Really Know...When You are in Foreclosure, Part 3

Sat, 07 Jul 2007 16:11:56 -0500

What Do You Really Know...When You are in Foreclosure, Part 3
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

I just posted an article that I wrote addressing some of the issues that homeowners face once they are in foreclosure. Most of what a typical distressed homeowner believes is just a myth - passed on from one uninformed do-gooder to another and soon the myth is believed to be a fact (Heck, Bill Clinton got away with it for 8 years). After the first article, I knew there was still more half-truths floating around, so I finished the first article with a second on the same format.

After reading through the first two articles, I started thinking what other information do I typically hear straight from the homeowners I work with, who are in a pre-foreclosure situation. What I cam up with is not so much the myths they here but the objections they have.

So, I thought I would cover a few of those here...

OBJECTION: We spoke with an investor who claimed he would give me back $5,000 cash, when escrow closes.
TRUTH: There are creative ways for a homeowner to receive cash from an investor. I have an ongoing series of articles about Short Sales that I publish in another blog, and you might want to check out this article... So You Have a Short Sale Lined Up - When Does a Short Seller Receive Money from the Sale - Step #8 .

You should know that the rule is that a homeowner cannot receive any cash back from the transaction and if you do, it may be considered to be fraud - especially if it is a government insured loan.

I have heard of other creative ways around these rules - but just because they are creative does not make them legal - so please be careful.

One way of testing an investor's credibility is to ask them for a promissory note for the amount promised. Chances are they will not sign one - especially since they haven't even spoken with the bank yet and have no idea what will be involved in clearing your debt. So, if you are going to go the investor route - make sure you are dealing with one how has both integrity and ethics - they are easy enough to test.

OBJECTION: We want to stay in the house - our kids have friends here and we like the schools.
TRUTH:   Staying in your house should not be a consideration if you have decided that you can't mitigate the losses with the bank. Many of the shady investors will contort some scheme that will allow you to rent back the house. This is not a good idea to get involved in - certainly not for more than a month if you are near the foreclosure date. Typically the home you are in now has been the center of much stress in your family and for what your monthly mortgage is, you can rent a really nice home or condo not far from where you currently live - chances are keeping your children in the same schools - for a lot less money. You need to stay away from anything that sounds too good to be true...

OBJECTION: My cousin (friend, or anyone else the homeowner knows - there are a lot of Realtors out there) is a REALTOR and can help me.
TRUTH: Servicing a Short Sale is a very specific area of expertise that most REALTORS simply don't posses.   It is a very time consuming and detail oriented process.

When working with a friend or relative, realize that they will become privy to all of the intimate details of your financial life - and what you are at you low spot, this may not be the time to bring in someone you are close to. Remember, you'll be seeing them for years to come at family gatherings and such and do you really want the memory of your problems to be triggered every time you see each other again in the future.

There is a flaw in the law that works against REALTORS in representing buyers who will not be the owner occupier of the home. To represent an investor in a pre-foreclosure transaction, a licensed agent must post a bond - a bond that is not sold in California - so therefore, a REALTOR cannot represent an investor in the transaction. However a REALTOR who has had experience with Short Sales will undoubtedly have a private network of interested investors who may be willing to write an offer on the real estate. Realize the importance of this, because lenders will not accept short sale packages until there is a bona-fide offer on the table.

I know this cannot begin to answer all of the questions that are raised in a stressful time like this. If I have missed any that are on your mind, please drop me an email and I'll be more than happy to answer your question the best I can. Please include as much information as you can, as well as your personal contact phone number.

If you are a homeowner facing foreclosure and want a sympathetic ear to hear your situation, please call me - perhaps as a REALTOR, I can offer a different perspective than what you have heard from so many others.

If you are a bona-fine legitimate investor looking to invest, please contact me and lets see if I can't find you the right opportunity.

Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR
Loss Mitigation Consultant

PLEASE DON'T FORGET TO LEAVE YOUR COMMENTS BELOW
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What Do You Really Know...When You are in Foreclosure, Part 2

Sat, 07 Jul 2007 13:44:53 -0500

What Do You Really Know...When You are in Foreclosure, Part 2
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

I just posted an article that I wrote to diminish some of the myths that homeowners hear all the time - often form those with good intentions but often form those who are misinformed, telling half-truths or repeating out dated information. Some times the information comes from those we would normally feel comfortable with in seeking advise - you know family members, neighbors and co-workers and then sometimes the lies are spread by devious individuals looking to capitalize on your unfortunate situation.

As a disclaimer, I am a professional REALTOR who has a fiduciary responsibility to every client I represent. A very simple definition of a ‘fiduciary' is putting the clients interests ahead of my own personal interests. If we ever talk person-to-person my first objective is to help you explore your alternative when it comes time to saving your home. If that fails, then I hope you will list it weight me so we can sell it and get you out from under the burden of your mortgage, even if it is a "Short Sale". That is my only objective

In this segment, we will explore some of the other common fallacies that I hear homeowners repeat to me on a regular basis.

MYTH: If the Bank takes my home back, I can then just walk away and start over
TRUTH: This may be true but it will hardly be a walk-a-way clean. First, you will have an IRS tax liability for the amount of the loan that is written off. You may even have a capital gains tax. Your credit will be damaged and there is still the possibility a lender could pursue you for the deficiency through judicial proceedings. This is especially true if your loan is a re-finance and you took cash out. I would strongly suggest you investigate your situation with a loss mitigation professional.

MYTH: The Bank is refusing to take my payments - There are no other alternatives!
TRUTH:   Once again, the Bank wants your money - money is the only product the bank really has...yes they package it in a variety of different ways - but money and your interest is the lifeline of any lender. If you are not having success negotiating with the bank, then perhaps a professional Loss Mitigation professional may be able to help with a number of different alternatives - depending on your personal situation.

MYTH: I raised the cash to bring my loan current - but I don't think the bank wants it now.
TRUTH: In California, as most other states, .you can redeem your loan right up until the time it is sold. Remember, the bank DOES NOT WANT YOUR HOME

MYTH: The bank is going to keep all of my personal belongings once they take the house back.
TRUTH: The bank is no more interested in your personal belongings then they are in taking back your house. If it is yours, take it with you. However, please remember that if it is attached to the house it became "real property" and stays with the house. Yes, I know you paid $10 a piece for the fancy light switch covers - but they stay with the house - the same as the dishwasher, lighting fixtures, and even the toilet does not belong to you - it is part of the house. If you strip the house before you leave, you are undoubtedly asking for trouble.

MYTH: I don't have to pay legal fees on top of everything else if I redeem my loan - after all, the bank is the one who started the whole process.
TRUTH: They started the process because you were not living up to your end of the deal - making your payments. They will have legitimate legal expenses that, yes, you will have to pay if you are going to redeem your loan. Typically, fees start around $1500 and escalate the longer the process has evolved and how much work the lenders legal team has put into the process.

MYTH: I can't talk to anyone about my pending foreclosure - there is no one who can help ME in MY situation
TRUTH: There is always help if you act quickly enough. You can search the internet for any number of resources - perhaps this is how you found this article. As a REALTOR, I have recognized the problem in the market and aligned myself with a reputable national company that works for the homeowner exhausting alternatives to keep the homeowner in the home - if that is truly in the best interest of the homeowner. If that doesn't work - then listing with a reputable and experienced REALTOR may be your best solution. There is always help...sometimes you just need to get on your pknees and pray to your Creator.

I hope this answers some of the questions that homeowners ask themselves on a daily basis when they find themselves in trouble with their real estate mortgage. They need to be able to stop the foreclosure process when they call out, "Save my Home!". They can, if they just keep a level head and work diligently towards the goal. The end outcome may not be the ultimate plan they have in mind, but at least they should be able to sell their real estate and move in dignity.

If you are a homeowner facing foreclosure and want a sympathetic ear to hear your situation, please call me - perhaps as a REALTOR, I can offer a different perspective than what you have heard from so many others.

If you are a bona-fine legitimate investor looking to invest, please contact me and lets see if I can't find you the right opportunity.

Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR
(951) 443-6259
Loss Mitigation Consultant
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What Do You Really Know...When You are in Foreclosure Part 1

Sat, 07 Jul 2007 10:46:53 -0500

What Do You Really Know...When You are in Foreclosure
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

The more I talk with homeowners facing foreclosure the more I know that there is a huge amount of misinformation being circulated (which is the entire reason for my blog - to set the record straight).

Homeowners who are falling behind in their payments are constantly feeling the pressure and stress of a pending doom - known in our society as FORECLOSURE. The problem is that most of the ‘information' being circulated is coming from people who really haven't got a clue but have nothing but the best intentions. You know who I am talking about...your brother-in-law, a neighbor, or even a co-worker. Everyone thinks they are an expert.

Please don't let these experts ruin any chance you have of either saving your property or allowing you to bow out gracefully.

I should caution before I go on...not all of the advise you will receive are from well-wishers. Once you find yourself in the foreclosure process the action is part of the public record and you will attract all sorts of investors and people with a whole lot of different agendas to either your mailbox or your door-step. Many of these agendas are very self-serving and some are unscrupulous and some will even be illegal - so please be careful

(SIDEBAR: As a REALTOR, I too have an agenda. If you cannot keep your home I want to allow you to bow out as gracefully as possible by allowing me to sell your home and negotiate a SHORT SALE with your lenders. First I will help you explore your options for keeping the home - it can happen...keep reading.)

MYTH: The Bank wants to take my home back so they can sell it for a profit.
TRUTH: The bank wants to loan money - not sell property. For a bank, the collateral on their loan is not considered an asset, but rather a liability on their balance sheet. The foreclosure process takes up valuable time when their loan is not performing and so they are not making money on their money. They would rather cut their losses and put their money back to work for them.

MYTH: The Bank is refusing to take my payments - There are no other alternatives!
TRUTH: Once again, the Bank wants your money - money is the only product the bank really has...yes they package it in a variety of different ways - but money and your interest is the lifeline of any lender. If you are not having success negotiating with the bank, then perhaps a professional Loss Mitigation professional may be able to help with a number of different alternatives - depending on your personal situation.

MYTH: I received my NOTICE OF DEFAULT (NOD) today, so I guess I better find a place to live.
TRUTH: In California, once the NOD is served, you have a minimum of 90 days before the Notice of Sale is posted and then another minimum 21 days before the auction takes place. If you are still in the property after the auction, then you have to be evicted from the process and the new owner has to go through the standard Unlawful Detainer litigation process which can take another 2, 3, 4 months or more.

SIDEBAR: These dates are only accurate for CALIFORNIA - some states may take longer and other states can move very quickly - so please do not rely on this information outside of California as a FACT, but as a guideline.

MYTH: Once in Foreclosure it is impossible for me to refinance
TRUTH: This is anything from the truth if you have equity in your home, referred to as Loan to Value (LTV). If your current mortgage is only 75% of the fair market value then your LTV would be 75%. There are many lenders out there who will refinance you - however be warned that the terms they will offer are typically going to be less desirable then the ones you currently have. The advantage is you can buy some time so you can make plans to bow out gracefully on a more relaxed time schedule. This type of loan may be considered "HARD MONEY" and is often less forgiving when payments are missed.

MYTH: I can stop the foreclosure by filing bankruptcy
TRUTH: First consult with a bankruptcy attorney, I am not an attorney and can not give legal advice. I can say that the bankruptcy laws recently changed and it is much more difficult to maneuver through at a much higher cost and ultimately many homeowners who file for bankruptcy never make it out the other end with their homes.

I hope this answers some of the questions that homeowners ask themselves on a daily basis when they find themselves in trouble with their mortgage. They need to be able to stop the foreclosure process when they call out, :Save my Home!". They can if they just keep a level head and work diligently towards the goal. The end outcome may not be the ultimate plan they have in mind, but at least they should be able to sell and move in dignity.

If you are a homeowner facing foreclosure and want a sympathetic ear to hear your situation, please call me - perhaps as a REALTOR, I can offer a different perspective than what you have heard from so many others.

If you are a bona-fine legitimate investor looking to invest, please contact me and lets see if I can't find you the right opportunity.

Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR
Loss Mitigation Consultant
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

What Factors will Influence a Lender to Accept a Short Sale

Tue, 03 Jul 2007 14:28:42 -0500

What Factors will Influence a Lender to Accept a Short Sale
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
When working a short sale, typically one of the first contacts you will have with the mortgage lender will be when you present your short sell package. The package has to be complete and thorough and most importantly it must compel the lender to accept your short sale offer.

The mortgage lender must be able to satisfy them selves that this is in the best interest of the bank. The short sale package must answer several critical questions from the lenders perspective:

The concerns that the bank might have is:

1.        Does the homeowner truly qualify for and deserve a short sale?

2.        Is it in the banks best interest to accept a short sale or are the better off taking the home back in foreclosure and ultimately resell the home using the services of a REALTOR?
3.         Are there any hidden factors that might effect the banks decision during the short sale process? The lender will conduct their own investigation to make certain that the homeowner is truly deserving of receiving the benefits of a short sale. They certainly don't want to allow the seller to walk-away from a loan if they already have a newer nicer home purchased and they just couldn't get what they wanted for the old one. Another example of what they may be looking for is a seller that is current on all of their bills, except the mortgage - and they are driving around in a couple of really nice vehicles. You get the picture.
There are other factors involved as well. Not only is the lender looking at the value of the property, repair costs, realtor commissions, holding costs position of the homeowner - they are looking at their own portfolio to see what wiggle room they actually may have.
Several key points the lender will need to consider before making the decision to pursue the short sale strategy will include:
Analyzing the lenders own portfolio. How many properties does this mortgage bank have that are in default and how flexible is the investor backing this particular loan - remember, many loans are traded as a commodity on Wall Street?
Is there a third party servicing the loan - and what is their fee?
Does the homeowner have an attitude problem or are they being cooperative?
Was the loan originally financed through the investor or were they able to purchase it as part of a portfolio at a discount - and how much is the discount?
Remember just because an offer sounds good to you...it may not sound so hot to the lender. After all, it is possible that they may think they would be better off taking the home back through the foreclosure process and selling it themselves and ultimately recover more of the money they are out.

If the first loan is upside down, then they will typically only allow the second to receive $1,000 from the sale - and the lenders in second position know this. However, if there is equity left over after paying the first 100% then the lender in second is in a stronger position to receive at least 10% of what is due them.

Always start the offer process with the bank LOW. Regardless of what you offer, they always seem to come back - so be prepared to negotiate and substantiate you position.
Perhaps the biggest unknown to the lender (and you) is what repairs are required to make the home saleable. If a lender takes the home for sale back through the foreclosure process. When you are negotiating with the lender, this card is often your "ace in hole". An estimate from a local licensed contractor is worth it's weight in gold - get tow estimates that support one another and your position and they are worth their weight in platinum!

When dealing with contractors you want well established reputable licensed contractors - not the cheapest handyman in town.

If you have your estimates done early in the process, you can use them to influence the BPO, which I'll cover in a subsequent article.
I again come back to a very important point in closing and that is to remain ethical at all times. Do not fabricate the illusion of damage to try and lower the value - this is fraud. Do not conspire with the contractor to do the work for a smaller percentage of the bid - this is both conspiracy to commit and fraud. Be ethical in what you do and not only will you sleep much better at night since you won't be thinking of the Attorney General or District Attorney investigating your deals, but by working ethically and fairly with all of the parties concerned I am sure your life will be much more blessed.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR
Realtor Consultant to Foreclosure Investors
Mission Grove Realty

PLEASE LEAVE YOUR COMMENTS BELOW

Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

When is Flipping Illegal?

Tue, 03 Jul 2007 02:20:26 -0500

When is Flipping Illegal?
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
The press can be such a pain in the rear end - all they want to do is sell newspapers and commercials on the networks. This is why they are constantly on the look-out for any story they can twist and get people excited about nothing. In my opinion, this is how they are helping to ruin the real estate perception - especially the perception of the big bad ugly real estate investors.
The press is constantly looking to report negative news about real estate. It seems like they have found their own niche market lately whenever they report on ‘flipping' and how they so cleverly associate it with real estate fraud. Today not only does a large percentage of the public believe that ‘flipping' is illegal bus so do many professional real estate agents, brokers and mortgage lenders. There are even escrow companies and Title companies that will not have anything to do with a "flip"!
Flipping is technically nothing more than a double close. An investor uses his resources to locate a deal below fair market value and then sells for close to the current fair market value of the real estate for sale. A "flipping" investor is nothing more than a middle man.

A double-close is just that - it is two closes that happen back-to-back when the cash needed to close the second escrow actually is used to pay the first escrow - leaving a profit for the ‘flipping' investor of the real estate. The escrows are both conducted in escrow and the Title Company insures the transaction as being a clean one.

There is nothing illegal about flipping - it has been going on for well over 100 years!
So Why all the Bad Press?
Because the press can find a grain of truth and run with it - blowing everything out of proportion and can easily manipulate the truth to fit it's own agenda - sell more newspapers and network advertising!
What is referred to as ‘flipping' by the press is actually mortgage fraud and has absolutely nothing to do with actual flipping of properties. In the illegal scheme what happens is that an unscrupulous investor will buy a run down undesirable property and make some sub-standard shoddy repairs. This scenario plays itself out over-and-over again in low-income and minority neighborhoods. Once the second-rate work is done, the corrupt investor will locate an unsophisticated buyer to pay more for the home than what it is worth.

On top of it all there is often a conspiracy between the reckless investor, the mortgage lender and the appraiser. Fraudulent documents are generally created and a bogus appraisal is generated and submitted.

This leaves the borrower with an inferior home that he owes more on than what it is worth. On top of it all, loan amounts are often elevated to include bogus closing costs and loan fees.
Many of these loans are federally insured - either through the FHA or VA. So when the homeowner defaults the watchful eyes of the government are connecting the dots and easily identifying the culprits - as they should. Today, the federal prisons are filing up rapidly with convicted mortgage fraud felons.
So What is the Deal with "Seasoning"?
Many mortgage lenders are gun shy because they have been victimized by this type of predatory behavior - often time with losses in the millions of dollars. Today, many have a policy that will prevent a buyers loan from funding if the property being purchased has been owned by the seller for less than 6 months. This is their way of protecting themselves from what might end up being a ‘fishy' deal.
Lender Policy is Not the Law
Just because a lender has a policy against certain issues and incorporate them into their underwriting guidelines DOES NOT MAKE IT ILLEGAL! It is just an internal policy that dictates how this lender wants to conduct their business...that is unless if you read the paper or watch network news.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Realtor Consultant to Foreclosure Investors
Mission Grove Realty
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investors Crossword Puzzel and More Games

Tue, 03 Jul 2007 01:30:17 -0500

I was surfing the net on Google and found a really cool page - Investor Crossword 3: Financial acronyms and abbreviations. I guess there are more out there - but his one is enough to get my brain gong at this hour. In anay event I wanted to share this with everyone - see how smart we all really are...Don't worry, you don't have to tell how you did.
I dug a little deeper and the site has all sorts of fun games and quizzes about investing - in general - that I though everyone who ever called themselves an investor should get a kick out of...
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Loss Mitigator - The Critical Link to a Successful Short Sale

Mon, 02 Jul 2007 01:01:46 -0500

Loss Mitigator - The Critical Link to a Successful Short Sale
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
If you are going to be a successful Short Sale investor then the most important relationship you can develop is not with the homeowner or the REALTOR representing them - although both are critical.

No, you have to learn how to get along with the Loss Mitigator employed by the mortgage lender holding the delinquent note. Not only do you have to get along with them, you have to get into their head and understand their strengths and weaknesses - similar to a chess game. The difference here - you want everyone to come out a winner - the homeowner and their REALTOR, the mortgage bank and their loss mitigator and you the happy short sale investor.

Negotiating with the loss mitigator is actually more like a dance then a chess game. You have to develop a few moves that you can impress other most of the time and you should get what you want.
Just like at a dance, you have to discover the strengths and weaknesses of your partner. What is it that impresses them? Do you know what will make them upset or frustrated? How ling have they been in the loss mitigation department - are they new or a seasoned and savvy pro? The more you can get to know about the party on the other side of the chess board - the better your chances are!
When working with the loss mitigator at the lenders office, I strongly suggest you remain 100% honest and ethical at all times. I know every little white lie I ever tell comes back to haunt me at some point - so please do yourself a huge favor and stick to the truth and deal honestly and ethically.
Probably the biggest thing you can do to impress the loss mitigator is to know what the heck you are talking about. For example, when you prepare your short sale package make certain that you have everything they need. If they want three months of pay stubs and bank statements - don't send two. Remember that a short sale negotiation is very time sensitive and you not doing your part right will only delay the procedure and frustrate the heck out of the loss mitigator.
Stay on top of your game. ALWAYS be professional, friendly and courteous. Know what is expected of you and stay in front of all of your deadlines. Believe me, the loss mitigator will appreciate this and if they are experienced they will definitely know the difference between what you are doing and what so many others do - scramble.
You also need proof that you can close the deal. If you have cash backing you up, then provide proof of those funds. If you are borrowing the money - you want to make sure you have been pre approved for the loan and not just starting the process along with the short sale. Nothing is more frustrating than working all the way through a deal only to find out that the buyer was all talk and never had the funds to begin with.
The same holds true if you are planning on flipping the property without ever personally taking possession - it is your responsibility to make sure that all of the end buyers paperwork is straight and that they either have or can get the money needed to close as soon as the lender approves your package.

If the loss mitigator you are dealing with is inexperienced you may very well have a time management problem on your hands. Like so many other professions, a skilled loss mitigator is worth his weight in gold. Those in the early stages of their career are often troubled with time management - handling so many files at once all in different stages of mitigation and foreclosure. It really can be overwhelming.
Should the loss mitigator be inexperienced, then you should take control. Always offer a date and time that the two of you will speak again to review the next step in the process. Be very clear in your communication - both verbal and written. It never hurts to ask the loss mitigator to read back what they wrote down - just to make sure there is no miscommunication.
Of course, there a few things you should avoid with the loss mitigator. Don't overstay your welcome and call too frequently - especially if you have nothing of value to add to the transaction. The last thing every loss mitigator wants to hear is, "I was just calling to see what is up and want to make sure everything is going smoothly. Would you mind giving me a progress report".
You know short sale investing is a small world and if you plan on riding out the current storm that is hitting, then there is a better chance than not that you will cross paths with this loss mitigator again. Wouldn't it be nice if you did something that would leave a lasting positive impression of you in their mind - it could be something as simple as a thank you note. How about if you attach a box of chocolates or a humorous coffee cup. Go ahead and congratulate them on doing a great job and believe me the next time you have the opportunity to do business you will be warmly remembered.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Realtor Consultant to Foreclosure Investors
Mission Grove Realty

Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Investor Abbreviations

Mon, 02 Jul 2007 00:02:14 -0500

Investor Abbreviations
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
Every industry has its own language. Doctors talk medicine. Lawyers talk law. Construction workers talk construction. Every other industry has its own set of terms that are unique - often separating the novice form the professional, or even better separating the professional from the general public. I for one believe it is designed that way
Real Estate investing is no different.
In real estate investing there are many terms that are referred to by initials. We all know some of the simple stuff, like ROI or "Return on Investment" and then there is FSBO which identifies a real estate home that is not listed by a REALTOR and is "For Sale By Owner".

There are many others - so lets take a look at a few that are common to California real estate investors and transactions...
ARV               After-Repaired Value
CMA               Comparative Market Analysis
COCR             Cash on Cash Return
COF               Cost of Funds
CRE               Creative Real Estate
DCR               Debt Coverage Ratio
FHA               Federal Housing Administration
FMR              Fair Market Rent
FMV               Fair Market Value
FSBO              For Sale by Owner
GRM               Gross Rent Multiplier
HML                Hard Money Lender
HOA               Homeowners Association
HUD              Housing and Urban Development
IRR                Internal Rate of Return
L/O                Lease Option
LLC               Limited Liability Company
LLP                Limited Liability Partnership
LTV               Loan to Value
MLS              Multiple Listing Service
NNN              Triple Net Lease
NOI                Net Operating Income
NOO              Non-Owner Occupied
OO                 Owner Occupied
O/F                Owner Finance
P&S               Purchase and Sale
PITI               Principal, Interest, Taxes and Insurance
PUD               Planned Unit Development
REI                Real Estate Investing
REIA            Real Estate Investors Association
REO                Real Estate Owned
ROI                Return On Investment
RTO              Rent to Own
SFH                Single Family House
SFR                Single Family Residence
VA                  Department of Veterans Affairs / Veterans Administration

Then the Real Estate lenders have to get in the act with their own set of terms that no one really understands until you participate in the business for awhile. So, if you are going to be using a mortgage lender to help finance your real estate investments, you had best familiarize yourself with these terms as well...

APR               Annual Percentage Rate
ARM               Adjustable Rate Mortgage
CCR               Conditions, Covenants, and Restrictions
CFD               Contract for Deed
CLTV             Combined Loan To Value
CAP               Capitalization
DBA               Doing Business As
DOS               Due On Sale Clause
DOT               Deed of Trust
FCRA              Fair Credit Reporting Act
LOC                Line of Credit
LOI                Letter of Intent
LPOA             Limited Power of Attorney
PMI               Private Mortgage Insurance
POA              Power of Attorney
Sub2             Subject to existing financing
TIL                Truth In Lending
I know there are many others out there. If you would like to add your additions in the comments, I promise I'll update this list so that it can become a useful resource for everyone who finds it.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR

Realtor Consultant to Foreclosure Investors
Mission Grove Realty
Until Next Time, Have a Blessed Day,

John Occhi, ePRO & Five Star Certified REO REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley, CA
The Excellence in Real Estate Team @
Allison James Estates & Homes
2281 W. Esplande Ave, #102-B
Next to "Starbucks"
San Jacinto CA 92582
(951) 654-5550



This blog and the contents written here is the intellectual property of John Occhi, San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.