Team Newington Mortgage Blog

What happened this week in the Elk Grove Real Estate Market? Check out these statistics!

Wed, 25 Nov 2009 02:19:57 -0600

Here is what happened this week in Elk Grove, CA Real Estate Market:

95624 - The median list price in ELK GROVE, CA95624 this week is $249,000. The 316 properties(single family homes) have been on the market for an average of 128 days.

The median house size is 2144 sq ft.
The most expensive listing is $4,350,000.
The least expensive listing is $94,900.

95757 - The median list price in ELK GROVE, CA 95757 this week is $260,525. The 311 properties have been on the market for an average of 133 days.

The median house size is 2539 sq ft.
The most expensive listing is $1,390,000
The least expensive listing is $130,500.

95758 - The median list price in ELK GROVE, CA 95758 this week is $199,900. The 308 properties have been on the market for an average of 126 days.

The median house size is 1726 sq ft.
The most expensive listing is $829,000.
The least expensive listing is $120,000.

Here is a chart the shows what our median price in all of the Elk Grove zip codes has done since 2007!

There are charts for the last 60 days for all 3 Elk Grove zip codes.

Want to get the full 10 page report on the Elk Grove Real Estate Market? Sign up now!

Want to learn more about the Elk Grove Real Estate Market? Check out our show Good Day Elk Grove >>

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Check out our first edition of Good Day Elk Grove - Get an update on the Elk Grove Real Estate Market -

Mon, 23 Nov 2009 21:40:30 -0600

Wonder what is going on with the Elk Grove Real Estate Market? Check out our first edition of Good Day Elk Grove!

Learn what is going on with our local market from top selling Realtors and Mortgage Planners who specialize in the Elk Grove area!

We are in a sweet spot right now... LOW interest rates - ROCK BOTTOM prices - TAX CREDIT for First Time Home Buyers AND Move-up Buyers!

Find out how you can benefit!

We are excited about our new show and would love to your feedback!

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Sacramento Rental Owners Get FREE Tax Planning Advice November 18th

Tue, 17 Nov 2009 01:24:19 -0600

Sacramento Rental Owners get FREE Tax Planning Advice November 18th at the Sacramento Rental Housing Association!

You can earn a ton of income from your wise investment choices... but at the end of the day it is what is left in your wallet that counts. Good tax strategy is key BEFORE purchasing your next Sacramento investment property.

Take advantage of the tax laws that can shelter your hard-earned rental income! One of Sacramento's premier tax attorneys explain various ways you can structure the ownership of your properties and estate to minimize taxes.

Todd and I are facilitating this Sacramento Real Estate Investors Forum hosted by the Rental Housing Association Wednesday night! Not only will you get some tax advice you can use to find legal tax loop holes to offset your rental income... We will also give you a Sacramento Real Estate Market update and let you know about upcoming changes in the lending world that could impact your ability to qualify for a new mortgage in 2010.

This meeting is FREE and is always well attended... so you want to make sure to register quickly!

Here are the details...

Date:
November 18th
5:30pm - 7:30pm

Location:
RHA Office
201 Lathrop Way Suite C
Sacramento, CA 95815
www.RHA.org

Cost:
FREE... Just Download RHA's registration flyer to claim your spot! >>

We look forward to seeing you there and answer any questions you may have about the Sacramento Real Estate Market!

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Get the inside scoop from Sacramento Investors who are currently flipping Sacramento homes

Fri, 13 Nov 2009 16:26:53 -0600

Please join us at the Elk Grove Real Estate Investors Group next TUESDAY NIGHT -November 17th!

If you come to our November and December meetings... Bring 5 cans of food to be donated to the Elk Grove Food Bank and we will waive the $15 entry fee!

We have a special guest this month for our Elk Grove Real Estate Investors meeting!

Ever wanted to flip properties in the Sacramento area? Get the inside scoop from area investors who are doing it!

Find out how out to successfully rehab and/or flip in our local market!

Please welcome us in joining David Granzella and John Johnson of Norcalreia, Vision Real Estate Solutions, Inc., and the Norris Group. David will share how his team has purchased, rehabbed and/or flipped almost 20 properties year-to-date in our current market.

David and John are passionate that we are currently experiencing some of the greatest periods of wealth transfer in history for those that educate themselves, develop relationships of integrity, and empower themselves to take action. David, John, and their contractor will explain how to analyze purchases, efficiently manage rehabs, and help ensure exit strategies. Please don't miss out on this opportunity!

Meet our speaker

David Granzella
David currently owns several companies focusing on real estate acquisitions, and is a consultant responsible for generating multiple real estate transactions in Northern California. David's expertise is in single family residences, wholesaling, and retailing, buying and maintaining rentals.
Vacancy rates

Leverage their experience and bring your questions! Join us on November 17th at our Elk Grove Investment Club... Elk Grove REI!

MEETING LOCATION
9275 E. Stockton. Blvd., Ste. 100
Elk Grove, CA. 95624
Networking - 6:30pm
Market Update - 7:00pm
Main Speaker - 7:15pm

Members are FREE!
Guests are $15

Bring 5 cans of food to be donated to the Elk Grove Food Bank and we will waive the $15 entry fee!

Join us and meet other Sacramento Investors who are actively investing in the Sacramento Real Estate Market!

Visit the Elk Grove Real Estate Investor Group website >>

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Order your FREE Sacramento Real Estate Market Update today! Delivered right to your email!

Wed, 11 Nov 2009 19:21:26 -0600

Yes I know... I am a Sacramento Mortgage Planner... but I can't help it! I love Sacramento Real Estate!

Order your FREE Sacramento Real Estate Market Update today! Delivered right to your email!

As you can see below, we have had a rough couple of years here in the Sacramento Real Estate Market! When I ran this report/graph I kinda chuckled!

Seeing our market played out on a graph makes me realize why 2007 was such a rough ride! When the "sky is falling"... it is certainly difficult to find the upside!

So far this year, we have seen more-and-more people gain confidence about the Sacramento Real Estate Market and are out in force buying up as many homes as they can qualify for.

The biggest stumbling block is not that they can't get the loan... they can't find a home! Our inventory levels are low as banks are finding more creative ways of dealing with their existing Sacramento bank owned inventory. Some are renting back to the previous owners, while others are selling lots of 10 homes (or more) at time to cash investors.

Flippers are starting to come back into our market, which to me indicates we are on the road to recovery. In fact, last month we did more deals that involved a seller who had just purchased the home and put it back on the market for a higher asking price, than we did with bank owned homes.

This is a huge shift for us in the last couple of months because until then 99% of our mortgage closings were purchases of bank owned homes. This number is creeping down as we see more flipped homes and short sales becoming a huge part of the Sacramento Real Estate Market!

"The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a "Seller's Market" (a.k.a. "Hot Market") because demand is high enough to quickly absorb available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "Cold Market") where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall."

Do you like the graphs above? Then you will love our 10 page FREE report for the Sacramento Real Estate Market! Did I mention it is FREE and it will be sent right to your email?

5 Reasons to Sign-up

			All my market research is real-time. What's happening right now in the market.
			Get more detailed market information than you can't find anywhere else.
			Learn about price trends, supply and demand and leading indicators.
			Better real estate market information helps you make your decisions with confidence!
			It's FREE! Just register! Let me know which neighborhoods you're interested in and we'll get you my Real-Time Market Report today!

If you would like to sign-up you can fill out this form to register
for our FREE Sacramento Real Estate Market report!

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It's official!... President Obama extends and enhances Home Buyer Tax Credit

Sat, 07 Nov 2009 00:32:52 -0600

President Barack Obama signed into law a $24 billion economic stimulus bill providing tax incentives to prospective home buyers. According to the Associated Press, the bill is expected to contribute $22 billion to the economy, offering qualified home buyers up to $8,000 in tax incentives until April 30, 2010!

The current bill will offer First Time Home Buyer's $8,000 in tax incentives, if they have not owned a home in the last 3 years.

The extended tax credit has also established a new incentive for Move-Up Buyers! Qualified home owners could receive up to $6500 in tax incentives to purchase a new primary residence between November 6, 2009 and April 30, 2010.

Here are some important things you should know...

First Time Home Owners income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.

According the the National Association of Home Buildersthe income is calculated based on this formula...

The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

Move-up Buyers need to make no more than $125,000 for single buyers and $225,000 for couples

According the the National Association of Home Buildersthe income is calculated based on this formula...

"The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains."

To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.

I recommend you talk to your CPA for a more plain English version!

You can not purchase a home from your family members or your spouse's family members.
You can purchase any new primary residence for a purchase price less than or equal to $800,000.
You must have lived and owned your current home for at least five consecutive years of the eight years prior to the purchase date.
You can down size your home.
You can build a home, but the first occupancy must be after November 6, 2009 and on or before April 30, 2010
Non-resident aliens can qualify for the tax credit if they meet all requirements. Ask your CPA for specifics!
Newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500. This tax credit is a dollar-for-dollar reduction in what the taxpayer owes to the IRS. Any leftover tax benefit would be mailed to the home buyer in the form of a check.

This is exciting and I am sure it will stimulate the currently non-existing Move-up Buyer market! Hopefully the banks will release some more of their inventory! There are hungry buyers out there who want to get into a home before Christmas!

Have question about the tax credit? Post a comment and I will try to point you in the right direction!

Happy Hunting!

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I just registered for Active Rain RainCamp in San Francisco December 2nd! I am so excited!

Wed, 04 Nov 2009 12:27:59 -0600

I was so glad to hear this morning that Active Rain is hosting another RainCamp.... thanks Facebook! AND... it is within driving distance from my office! I was so tempted to book a flight for their first event in Seattle... I am soooo glad I waited!

It is so nice to know that not only will I be learning a lot about blogging and Active Rain... I will get to meet my Active Rain friends face-to-face!

Here is the website you need to register! http://raincampsf.eventbrite.com/ There are only 140 spots so hurry it up!

Can't wait to see you there!

Erin

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Getting a mortgage for a Sacramento Short Sale means you must be proactive!

Tue, 03 Nov 2009 17:27:28 -0600

Short sales in our area are increasing more and more every month and take up a large percentage (and growing) of the homes for sale right now in our Sacramento real estate market.

I wanted to write this post to give you an idea of how obtaining a mortgage for a short sale will differ from a private party or bank owned home.

When you make an offer on a foreclosed home, you are dealing directly with the bank because they are the current owner. The bank has already completed the foreclosure process, set the sales price, and are actively waiting for offers to come in so they can sell the home and get it off their books.

A short sale is a little different in that the bank does not technically own the property... they only have a mortgage lien against the property. When you make an offer on a short sale home, your offer goes first to the homeowner for their approval and signature. Then the accepted offer is sent to the bank(s) that hold the mortgage lien(s) for the home in order to obtain a short sale approval.

The short sale approval is a document that gives the homeowner permission to sell the home for a specified amount and the bank agrees to release the mortgage lien even though they will not be paid in full. This process can take days or months... it really just depends on the bank(s) that currently hold the mortgage lien(s) for the home.

When you make an offer on a bank owned home, you usually know right away if your offer is accepted. Making an offer on a short sale is a little different in that the bank has to get clear about the current value of the home through broker price opinions and appraisals. They also need to review the current owner's hardship and financial documents to make sure the owner qualifies for the short sale. This is what takes so much time and can test your patience as the home buyer.

If you are patient and do your homework upfront, purchasing a short sale can provide you a great way to get a deal in today's market with less competition.

Even though the bank takes their time making the decision to approval the short sale... they will often ask the buyer to close escrow in a matter of weeks once the short sale is approved.

Right now the real estate market can be a little hectic. Mortgage lenders are picking apart perfect files and closing escrow in less than 30 days can prove to be a real challenge.

In order to make sure your loan goes through as quickly as possible here are a couple tips:

•1. Make sure you work with a mortgage professional who asks you for a complete loan file upfront!
A complete loan file should at least include (tax returns and W-2s, 2 months banks statements, most recent retirement statements, and 30 days worth of pay stubs). You need to make sure you are working with someone who will take your loan seriously and thoroughly review all of your documentation looking for red flags. Your mortgage professional will want to do as much work upfront as possible so there is no time wasted tracking these items down once you are in contract.

•2. Keep a file for new information as it is received!
You will want to create a file where you can hold any new bank statements, paystubs, or retirement statements as they come in. Your mortgage professional will needs these items once you are in contract. The quicker you can get these items to them, the quicker your loan can be submitted.

•3. Respond quickly to your real estate agent or mortgage professional when they ask you for something!
Even though you are in escrow... life still goes on as normal. You need to make it a priority to get back ANY items requested of you as quickly as possible. Remember your real estate team can only work as quickly as you allow then to! Every day wasted just makes your real estate transaction that much harder to close.

If you have patience, understand the short sale process upfront, and respond quickly when asked...short sales can prove to be a pot of golden opportunities for a homebuyer!

I hope this information has helped you understand the short sale process better. Please post a comment if you have any questions on this topic and I would be happy to answer them!

As always... Happy hunting!

Erin

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If you don't put out your open house signs... Would anyone show up? The same goes for your Blog!

Thu, 29 Oct 2009 15:44:02 -0500

If you don't put out your open house signs... Would anyone show up? The same goes for your Blog!

I started writing our blog about 2 years ago. In the beginning, I viewed our blog as it's own separate entity and did very little to cross promote it with our other marketing efforts.

I think a lot of that had to do with my confidence level and I felt I had not quite found my voice. It can be intimidating to start blogging. Every post that I wrote and every comment I received made me realized I did have something to contribute to the community. At some point... the training wheels popped off and I was off to become a full blown blogger!

The beginning of this year I realized I had this huge library of content that could be leveraged in our other marketing efforts. Our blog was no longer about the points I could collect or about the Internet ranking I could achieve. It is about a valuable resource of articles (and rants) that I could LEVERAGE to get more clients.

Looking back... How could I miss the biggest pot of gold in my possession?

We produce an e-newsletter that is sent out to our database. I don't know what I was thinking, but I would write a brand new featured article for each e-newsletter. At some point I realized... duh... Why am I recreating the wheel here? Why not use something I had already listed as a blog post?

At first, I would copy and paste the blog post right into the e-newsletter. This worked fine, but I quickly realized that I could kick it up a notch by adding a teaser paragraph instead of the entire article. This way it would force our readers to click through to our bog to get the rest of the information.

This did 2 things...

First it allowed me to track within Constantcontact.com (the website we use to send our e-newsletters) which articles were of interest to our database. You see, if you just copy the entire article into the e-newsletter, you have no idea if they read that particular article or not. Constantcontact.com will tell you they opened the email, but I had no way to identify which articles were the most popular. If you add a teaser paragraph and a link to the rest of the article, Constantcontact.com will track every time a reader clicks on each link. Now all of a sudden I knew how many people read our articles and who specifically clicked a particular link!

The added bonus for restructuring our e-newsletter?... Every time a reader would click a the link, it would drive more traffic to our blog site. Think about it... One of the ways Google rates your blog is based on the number of visitors it gets. This is a great proactive model you can use to push more traffic to your blog!

I have recently changed this featured e-newsletter article into a promo piece for our blog. I list 4 or 5 blog posts with links to each! My goal is to get people trained to go to our blog to get the information directly. I encourage folks to sign up to receive these posts via email on this promo piece.

I also create e-newsletters with other referral partners who work with the same target market. I use this same model and offer content that benefits their database. This creates even more traffic to our blog and that original blog content is being send to hundreds of people! In the past I would write that same post and it would sit there waiting for someone to drop in and read it.

If you have not figured it out yet... this model can be used in many different ways. I have added my blog posts to Twitter and Facebook and have seen huge jumps in my blog stats.

For Facebook, I have created several groups and fan pages that allow me to attract my target prospective clients. This way I can offer links to each group that is of interest to that particular niche market.

See... It is kinda like sitting an open house and not putting out the signs. Is the house great...yes! Are you good at what you do?... YES! But if you don't put out the open house signs... there is no way folks would know that you are in there waiting for them! In order to have a successful open house, you need to have a sign at every corner, send out an email to your database, and list it online and in the paper so that people actually show up!

The same thing goes for your blog. If you write the best post out there and it just sits.. how is that doing you any good? But if you post it on social networking websites and send it out to hundreds of people via your database (and other people's database)... now you have got yourself some action!

Did this post make you think differently about your blog? Leave a comment... I would love to hear from you!

Erin

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Not all pre-approvals are equal... it really comes down to who is providing it

Wed, 28 Oct 2009 16:47:13 -0500

I have read many blog posts recently regarding the subject of pre-approvals. It seems that many folks in our industry have a different idea of what a pre-approval is.

The problem is there are no uniform rules when it comes to pre-approvals. Not all pre-approvals are equal... it really comes down to who is providing it.

So as a Realtor... How do you know which pre-approval is the strongest? Many Realtors will say that if the pre-approval comes from a large bank, then the pre-approval must be stronger than the one that is provided by a mortgage broker. I battle this often when I go head-to-head with another offer that has a large bank pre-approval.

The truth is many times the big banks don't require the client's financial documents in order to pre-approve the borrower! They just pull the credit report and ask the client what their income is. Many Realtors will assume that the big bank logo holds some kind a merit... I have to disagree!

I know Realtors who insist they get a pre-approval from a correspondent lender which is a bank line. Although we are a mortgage brokerage, our company (as well as many other mortgage brokerages) have the ability to fund as a correspondent lender (act as a bank). The cold hard truth is there are no short cuts when I place a loan as a correspondent lender than if I placed it as a broker. I may save a day or two when I request the funding as a correspondent lender... BUT UNDERWRITING IS EXACTLY THE SAME!

On a side note... I know of mortgage "professionals" in my area who hand out their pre-approval template to their Realtors! It shocks me that either side (Realtors and mortgage "professionals") participate in this! This pre-approval template allows the Realtor to enter anything they want into the letter so they can print it and present it with their offer! It is amazing there are still people like this in our industry.

We happen to be on the complete polar opposite of these folks. Some might say our process is way too strict and it takes too much time upfront. We feel the more homework we do before the client is in contract the better... especially in this market!

Here are the steps we take for EVERY pre-approval we write.

1. The client must provide us with a complete loan file
What does this mean anyways? They must provide us with 2 years tax returns, 2 months bank statments for all accounts, the most recent quarterly/monthly statement for all retirement accounts, a copy of their ID's, divorce decree (if recently divorced) and any other client specific paperwork that is requested UPFRONT!

Many folks want to know why they can't just tell me their income numbers over the phone. What I think people don't understand is even though their pay stub reflects $6,000 a month... that may not be the income number that ends up on their loan application. Lenders are picking files apart right now, scouring through tax returns looking for write-offs and business expenses that could further reduce the borrower's income. This goes for rental income as well! Just because you deposited $1,000 in your bank every month... the underwriter 9 times out of 10 will insist you be qualified based on the rent you claimed on LAST YEARS tax return.

So if the mortgage professional does not ask for a complete package upfront... How can they truly analyze the borrowers ability to qualify for a loan without all of the information?

2. Once we have all of the information from the client TWO members of our team review the file before we ever enter any data into the automated loan approval system.
If you are a Realtor and a mortgage professional is telling you they have an automated approval... Remember this approval is only as solid as the information entering into the system.

If the mortgage professional is entering the $6,000 income I used as an example above and it really should be more like $4,000 according to the tax returns... then that automated approval does not mean jack!

We go the extra mile and have two sets of eyes look at every file we get a pre-approval for. This way any sticking points on a particular file is more likely to be caught upfront.

3. Once we decide on the most conservative numbers to use, we run an automated approval.
As long as there are no shift in assets, loss of income, or a new tax return is filed, or guidelines change... our pre-approvals are solid because we actually pre-underwrite the file.

You would be surprised how may listing agents call the mortgage professional who gave a pre-approval letter for one of their offers and the mortgage "professional" does not even now what an automated approval is! If this happens to you... file that offer directly to the trash!

As you can see, there is a big difference from the mortgage "professional" who hands out a pre-approval template to their Realtor compared to our 3 step process... YET THEY ARE BOTH CALLED PRE-APPROVAL LETTERS!

I think it comes down to who is providing the pre-approval letters! Don't be shy to call the mortgage professional and interview them! I welcome these calls! I find I can often times talk the listing agent into accepting our client's offer because they are not neccessarily looking at the highest offer... they just want to pick the one that is in the hands of someone who can close!

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Governor Schwarzenegger puts the smackdown on REO Asset Managers... well sort of... BUT will it really help?

Thu, 22 Oct 2009 14:11:37 -0500

The Escrow Institute of California announced that Governor Schwarzenegger signed Assembly Bill 957 into law.

This bill, authored by Assembly Member Cathleen Galgiani, protects consumers by ensuring that they have the right to choose their own real estate service providers when purchasing foreclosed properties.

AB 957, known as the Buyer's Choice Act, prohibits sellers of so-called REO properties - typically foreclosed properties owned by banks - from requiring the buyer to use a particular title company, escrow settlement or other real estate service provider. This unethical, anti-competitive practice drives up costs for homebuyers and takes business away from locally owned companies.

If you follow our Blog, you will know I have written countless posts about our escapades with bank owned title companies.

Here are just a few...

There ought to be a law! - Don't you hate it when the title company makes more than you!

As much as I am frustrated with Bank Owned Discount Title Companies - I am reminded they are just people!

Why do discount title companies hired by the bank get to charge whatever they want?

I chuckled when I found the first blog in my archive... Arnold must have been listening!

Overall I think this new law is a good thing... but the reality is I don't think it will change anything!

My biggest beef with the Bank Owned Title Companies is they give the banks a big discount on their fees... BUT they just end up passing them on to the Buyer.

Here is an example of one of our clients who got gouged by a Southern California title Company:

Escrow fee:
$891 (Wow.. that seems a little steep..Shouldn't it be more like $400?)

Title insurance:
$1674

Buyer Messenger Fee:
$35 (Did you send the Buyer a secret message I did not know about?)

Sub escrow fee:
$62(What?.. Didn't they already pay you a hefty escrow fee?)

Loan tie-in-fee:
$200 (tie into what? There is only one loan?)

Processing Fee:
$150 (You mean the escrow fee did not cover it?)

Courier Fee:
$24

Buyer Archive fee
$50 (Wow.. now you are getting creative!)

Wire Fee
$25

Archiving Fee #2
$50 (OK... now you are pushing it!)

This is from a real closing statement! When I got the estimated HUD statement before my client's signing... I had to laugh... because it is all I could do!

I have tried calling the bank owned title companies to ask them to explain these fees. Every time I have called to discuss these crazy fees, the bank owned title companies (mostly located in Southern California) pretty much tell me to stuff it (my interpretation) and tell me they don't have to explain any of their fees to me.

Not only are the bank owned title companies making their money off the Buyer's backs... they are miserable to work with! I am not kidding here... ABSOLUTLY MISERABLE!

So let me get off that soap box and back to my point!

If you have made offers on Sacramento foreclosed property lately... you know there is a lot of competition right now in certain price ranges.

The Banks control a huge percentage of our Sacramento inventory and right now they make the rules. Buyers who ask for seller's concessions or repairs get their offer filed directly to the trash... in multiple offer situations.

So if you are one of those 10 offers sitting in front of the asset manager (works with the bank to sell their foreclosure inventory) and you are giving them grief about using their title company... where do you think your offer will be filed?

It is like asking a bank to modify their standard addendum they require all Buyers to sign that takes away many of their rights and their first born child (not really)! The Banks are never gonna do it!

That is my stance as of now...

Arnold.... It is the thought that counts!

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Elk Grove Rental Market - great update tonight at Elk Grove Investment Club

Wed, 21 Oct 2009 13:15:21 -0500

This makes my life easy.... See Lori Mode's recap of our Elk Grove Real Estate Investment Club meeting last night!

Via Lori Mode and Bruce Durham (Keller Williams Realty):

I attended my first Elk Grove Investment Club meeting tonight and it was great! Hosted by Todd & Erin Newington of First Priority Financial with guest speakers, Bill and Chris Stanley of Realty Roundup, a local property management company, it was well attended by area investors.

I am often asked by potential investor clients about the local market and so I make sure that I stay up on the local rental market as much as possible. What a great opportunity to listen to the opinion of an area expert. Realty Roundup is the largest property management company in the local area and information regarding the Elk Grove rental market was shared by Chris Stanley with the investors.

Chris stated that the Elk Grove rental market has remained fairly stable over the past couple of years. The rental values have stayed steady as well as the number of vacancies. He attributes this to the fact that we have many homeowners walking away from their homes due to hardships but still wanting to remain in the Elk Grove area thus entering the rental market. Approximately 75% of their recent applicants have been somehow affected by the foreclosure market - either they have lost their homes through foreclosure or short sale, or they were renters of homes lost to foreclosure or short sale. Currently the most stable of the 3 Elk Grove zip areas is 95624.

Chris also seemed to feel that those former homeowners that have lost their homes through foreclosure or short sale, may end up being your best renters as they don't have that hefty payment any longer. Realty Roundup looks for the renter's income to be at least 3 times the monthly rent.

The Elk Grove area is a great place for your investment dollars...prices are very reasonable, we currently have incredible interest rates and we are seeing positive cash flows again! Don't wait! The opportunity is right NOW!

For more information on the local rental market and investment opportunities, contact Lori Mode of The Mode & DurhaM Team, Keller Williams Realty, at (916) 230-0371 or Lori@ModeandDurhaM.com.

Search all Elk Grove homes here!

Search all Sacramento homes here!

Contact me for more information about anything you see on this blog

Lori Mode and Bruce Durham, Keller Williams Realty in Elk Grove, CA

www.AllElkGroveHomes.com

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Wonder what is going on with the Sacramento Rental Market? Find out NEXT TUESDAY!

Fri, 16 Oct 2009 17:05:10 -0500

Please join us at the Elk Grove Real Estate Investors Group next TUESDAY NIGHT - October 20th!

We have a special guest this month for our Elk Grove Real Estate Investors meeting who will discuss the Sacramento Rental Market!

Wonder what is going on with the Sacramento Rental Market?

Find out what other landlords are getting for rent in your area!

Join us and meet Bill Stanley from Realty Roundup.

Bill has been in the property management business for years and operates one of the largest property management companies in our area.

We thought it was appropriate to bring back Bill to give us an update on the rental market as we move into 2010.

Bill and Chris will cover...

Sacramento Rental Market statistics

Vacancy rates
Current rental rates
Turn-times to replace a tenants
How many tenants are leaving because they are buying?

What to expect when Investors manage their own units?

Hot points to be aware of
Marketing ideas

How to best select a tenant?

Post foreclosure applicants

How to select the right property manager?

Question and Answer

Leverage their experience and bring your questions! Join us on October 20th at our Elk Grove Investment Club... Elk Grove REI!

Meet our Speaker!
Realty Roundup
(916) 685-6601
www.RealtyRoundUpinc.com
Realty Roundup, Inc. is a full service Management Company, serving owners of single family residences, duplexes, triplexes, multiple units, apartments, and small commercial.

MEETING LOCATION
9275 E. Stockton. Blvd., Ste. 100
Elk Grove, CA. 95624
Networking - 6:30pm
Market Update - 7:00pm
Main Speaker - 7:15pm

Members are FREE!
Guests are $15

Join us and meet other Sacramento Investors who are actively investing in the Sacramento Real Estate Market!

Visit the Elk Grove Real Estate Investor Group website >>

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

The First Time Home Buyer Tax Credit goes away December 1st. Read our post about how to get into a home in time! >>

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	Visit Our Website! >>

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Upcoming guideline changes will impact your ability to buy a Sacramento home

Fri, 16 Oct 2009 15:41:35 -0500

Upcoming guideline changes will impact your ability to buy a Sacramento home

If you are buying a Sacramento home you will want to read this...

There are 2 ways to get a file approved with Fannie Mae. You can have your file manually underwritten or you can run the loan through their automated approval system.

In February of 2009, tougher guidelines were put in place by Fannie Mae. This change made it much more difficult to qualify for a new mortgage.

Since February, only manually underwritten loans had to follow the new rules.

As of December 12, 2009, Fannie Mae will update their automated underwriting system and close a loophole we were using to get our clients approved.

Here are 2 big changes included in this update that will impact many of our clients:

#1 Challenge: The Borrower's debt-to-income ratio can not exceed 50%

Ouch! I just got an approval for a client at 61%! As of December 12th... This client will not qualify! They are out looking for new homes as we speak!

I reviewed the last 10 Sacramento mortgages we funded ... This update will impact more than HALF of the loans!

Now keep in mind... most of our clients are investors have good income and assets. What these clients also have is ton of write-offs! Their CPA does such a good job... Their client no longer looks like they make any income!

A common misconception many clients have... They think they can use their current rental income to qualify for their mortgage. Nope! Lenders will most likely reference their last year's tax return to determine the rental income to qualify the borrower. So... if you have had any vacant units or spent a ton of money in repairs... you could find you can't claim as much of the rent as you think.

It is not just rental income that is a problem! The lender may require your regular earned income to be averaged over the last 24 months. This means you might not be able to use your current higher income to qualify! Instead, you may need to average your current income with a lower income year.

This change is a big deal! If I were you... I would find out exactly where you are at in regards to your debt-to-income ratios in the next week or so... if you plan on buying a home by the end of the year.

If you are looking to purchase in 2010, you will want to work closely with your mortgage professional and your CPA to see if you can roll over some write-offs into the 2010 tax year.

#2 Challenge: New asset rules mean you need more money in the bank to buy a home!

In the past you could use 100% of the current value for stocks, bonds, and mutual funds. Fannie Mae now requires you only list 70% of the value. They are also reducing retirement accounts from 70% to 60%!

This only really becomes an issue if you do not have many assets to work with.

Just when you thought it could not tighten any more... it does! That is OK... we will just modify and adapt!

They are going to force us to sharpen our pencils. That is OK!I agree with that... it is a goog thing!

THIS IS A REMINDER FOR US... PLANNING IN THIS MARKET CRITICAL!

If you think this may impact you... please call Todd at (916) 687-6868 Ext. 1 to discuss your options!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

The First Time Home Buyer Tax Credit goes away December 1st. Read our post about how to get into a home in time! >>

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The subject of loan officers came up and the crowd actually booed!

Thu, 08 Oct 2009 00:47:50 -0500

Last week I was at a seminar that consisted mostly of real estate agents. The subject of loan officers came up and the crowd actually booed. Being 1 of the 3 loan officers in the room... I just looked around in amazement. Talk about a tough crowd!

Have you noticed real estate agents get a notable twitch when the subject of loan officers comes up? I am exaggerating here... but sometimes it does feel that way.

Some real estate agents act as if they are a superior class and I the lowly loan officer need to leave them alone. The funny part is... all I did was say hi and introduce myself.

Everything was going good until I told them what I did for a living. Talk about throwing out some judgment or stereo type before you really get to know me as a person!

Anyone who knows me knows that I am not a salesy person. I don't care for salesy people (not matter what they are selling) and I certainly don't act that way... My Type D personality would not allow that ;). I am not going to hand you a flyer (I would rather die first)... I am certainly not going to chase you down the hall or into your office trying to get you to give me a deal. So then why when I tell you what I do for a living do you assume this is how I will act?

The truth is I don't need your business. That does not mean I don't want your business!

The fact is... we generate enough leads every month to allow us to referral clients to Realtors. One local agent received over $13,000 in commissions last year from our referrals alone.

So now that we have addressed that I don't need anything from you... Can we move on to getting to know each other as people who share a common client base and real estate market?

What if you thought about my introduction a little differently? When I am out networking, I am looking for folks who are hustling in their business. It intrigues me to find out how people are thriving in our market and I feed off their energy. I love to talk about war stories and battles won and how they are constantly evolving and growing their business despite of brutal market storms.

Why?... Because we are both in the same boat. I love the banter back in forth when you find a real estate agent in the crowd who gives you that spark. Do you know what I am talking about? When you can almost finish each other's sentences because your day-to-day life in business is parallel... even though they sell homes and we sell mortgages.

So if I don't need your business, Then why am I out networking and introducing myself?... Fair enough!

The word of the day is L E V E R A G E.

If you are kicking butt selling homes and we are kicking butt financing them... How can we work together to play an even bigger game?

I don't know about you... but our business is way up this year and the opportunities are endless. What is not endless is the amount of hours in the day.

So how can I find a real estate agent with a similar business/marketing plan who is going after the same target market then build something great. Maybe it is an event or seminar... maybe a website or blog. Whatever the thing is... it does not matter! Just two highly dedicated teams who are working together to create something bigger than they could alone.

So if you are a real estate agent and you are guilty of turning on your heels and running for the door at the sight of a loan officer coming down the hall... think about what you might be missing out on.

Have an idea of how we can work together and go after some business together? Call me to discuss the possibilities!

This blog by:

Erin Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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Sacramento Landlords are you ready for the new Sacramento County Rental Inspection Program coming January 2010?

Thu, 01 Oct 2009 18:04:20 -0500

Did you know that as of the first of the year Sacramento County is putting into effect a new rental housing inspection program?

This week we had a Sr. Code Enforcement Officer from the County of Sacramento speak at our Sacramento Investment Club meeting.

Not only did we talk about making offers on Sacramento bank owned homes with code enforcement issues, he also informed us of a new Sacramento County rental inspection program coming in January 2010.

The good news is that it appears the County of Sacramento's program is much more user friendly than the one adopted by the City of Sacramento. These are my words not his by the way.

In fact, Sacramento rental owners can do the required inspection themselves and it only needs to be done every 5 years. The County of Sacramento worked with the Sacramento Rental Housing Association to develop this new program so it met the needs of Sacramento County, local tenants, and local landlords.

The best way to get up to speed to make sure you are in compliance is to register for a class at the Rental Housing Association!

Here is a quick blurb from their website about the matter!

According to the Rental Housing Association...

Local jurisdictions across the nation have adopted ordinances requiring inspections of rental properties by government officials with high fees to cover the costs of the program. These programs are designed to address health and safety issues, although properties that operate in a professional manner subsidize the overall program. Local governments generate millions of dollars each year by assessing a per unit annual fee (usually $30-$50 per unit) on rental owners to hire new employees.

Thanks to RHA, rental owners with properties in the unincorporated areas of Sacramento County (meaning in Sacramento County, but not within the cities of Folsom, Elk Grove, Citrus Heights, Rancho Cordova or Galt) will not be subjected to a mandatory rental inspection program run by local government. Instead, rental owners will have the option to conduct self-inspections, designate another individual or have a county official conduct these inspections beginning January 2010. As a result, rental owners will save millions of dollars in fees that could have been paid to local government.

With the exception of the property owner, whoever conducts the inspection must: 1) attend a two-hour course that explains how to comply with the new ordinance and 2) obtain an official certificate of completion of the training. Only the actual property owner may conduct an inspection without attending the certification course. RHA is the only organization approved by the County of Sacramento to provide this training. Until further notice, the training and certificate of completion will be provided for free as a public service of RHA.

Ok folks... not only is the Sacramento Rental Housing Association out there lobbying for common sense inspections programs... they are offering these classes for FREE so you can get up-to-speed!

You can download a flyer that lists their upcoming classes or visit their online calendar at their newly designed website.

These classes will fill up fast! So make sure that you get registered quickly!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

The First Time Home Buyer Tax Credit goes away December 1st. Read our post about how to get into a home in time! >>

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Making an offer on a Sacramento Bank Owned home with Code Enforcement Liens

Wed, 30 Sep 2009 18:02:00 -0500

Ever put an offer on a Sacramento Bank Owned Home that had code enforcement issues?

I wanted to share with you some of my notes from our meeting last night at the Elk Grove Real Estate Investment Club.

Now I want to stress to you these are my notes... In fact I am leaving the Sr. Code Enforcement Officer's name out of this post because I don't want to misrepresent what he said...so read at your own risk!

So if after that disclaimer you are still in... let's get started!

Mr. Sacramento Code Enforcement Officer said that he has seen an improvement over the last six months with the responsiveness of the banks when dealing with properties with code enforcement issues. He thinks this is due to banks hiring local agents to sell their assets who keep better care of the homes since they are actually in the same town...imagine that!

I wondered what would trigger the Sacramento code Enforcement crew to be called to a particular property. Mr. Code Enforcement Officer said that 95% of the issues they investigate are due to consumer complaints. These complaints mostly involve break-ins and vandalism to vacant properties. He estimated 60% or so of the complaints involved Sacramento Bank Owned Homes.

The first step when a complaint comes in is to investigate who is responsible for the subject property. So they will pull from several different database sources to try and tract down the owner's contact information. I would imagine that when dealing with a Sacramento bank owned home, it may prove to be more difficult to track down contact information for the asset manager (if not currently listed on the market).

Once the owner has been identified, they make an attempt to get the owner involved to secure the property.He stressed that they would prefer that option rather than the alternative. If they cannot get the owner on the phone, they will order the home to be boarded up (if a health and safety issue) at a cost to the owner. This cost is passed down in the form of a lien called a NOPEA (Notice of Pending Enforcement Action) against the property. This lien will cloud the title so that the county can be paid back at the time of sale. He estimated that the cost involved would be approximately $3,000 -$4,000 by the time you add up all of the staff time. I was really impressed by his concerns of keeping the costs down for the owner. He said it does not help anyone if they slap the property with outrageous fees. Their goal is to get the property fixed and habited, not create a bigger problem by hindering the sale of the home. I could't agree more!

We asked him about homes that are purchased with a second unit that was potentially non-permitted and not on record with the county. We referred to it being grandfathered in... He called it legal non conforming use. He mentioned if the structure was fairly new (less than 5 years) you could have issues. If it was older than 5 years old, as long as you left the unit alone and did very little rehab to it (check with the county for the actual percentages) there would be no issues.

If you would like to run your questions by a Sacramento Code Enforcement officer you can call (916) 874-7908 and speak with the officer of the day.

Another fact I found interesting... There are currently 90,000 units in the County of Sacramento. Yet there are only 6 enforcement officers on staff!

One last tidbit of information...

Did you know that the county of Sacramento will adopt a new rental inspection property as of the first of the year? Yep that is right! This really is a post of its own so subscribe to this blog below to make sure you get the details about this new program in my upcoming blog. You can receive any new posts to our blog via email by clicking the link below.

If you own property in the unincorporated areas of Sacramento County this new ordinance will affect you! I can tell you on its surface, it appears that this new ordinance will be much more landlord friendly when compared the City of Sacramento's rental inspection program. This is my opinion by the way!

I would recommend that you check my notes directly with the county at (916) 874-6444.

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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Hurry Sacramento Home Buyers... The First Time Home Buyer $8,000 tax credit goes away November 30th!

Tue, 29 Sep 2009 17:17:47 -0500

Do you realize that you have approximately 30 days to find a Sacramento home and get into contract so that you can benefit from the First Time Home Buyers tax credit?

Most escrows these days are taking between 30 - 45 days to process. Last year we could easily get a deal closed in 3 weeks start to finish. This year because of new disclosure rules and the lovely HVCC process, it has added several days to get a loan closed.

This deadline is a big one and many other Sacramento First Time Home Buyers will find themselves in the same race.

Do you realize you have a matter of days before you need to find a home to benefit from the BIG tax benefit?

That is right... I figure you have approximately 32 days from today to find a Sacramento home and get into contract! What!!! Yep... and that is the best case scenario since I am basing that number on a 30 day escrow!

This will be a challenge... not impossible... but defiantly a challenge.

Here are some tips to make sure you can find a home in time:

1. Get pre-APPROVED!
It will be important to have all your ducks in a row before you go out and look at homes. You want your mortgage professional to scour through your tax returns, bank statements, retirement accounts, credit report, and employment history to make sure your qualify. You want to know exactly how much you qualify for and find out is there are any red flags that need to be addressed! If you spend 10 of your 32 days looking at a home you can't qualify for... that will get you nowhere fast!

2. Work with an Real Estate agent who knows the market!
You want to work with someone who gets deals closed. Working with an inexperienced agent can take extra time you don't have. I don't want that to sound harsh, but it is true. I see it happen every day. I have got agents calling me to help them negotiate the deal, ask me how fill out a contract, and some who screw up the deal once we are in contract because they don't know what they are doing! You want to work with someone who closes a lot of deals in your area because they will have the contacts and the systems to get you into a home quickly.

3. Have your Sacramento Real Estate Agent put you on an email list that will notify you as new homes come on the market in your target area.
Take these emails seriously! You should open these emails every morning when they arrive and make yourself available at the drop of a dime to view homes that interest you.

4. Get the home under contract quickly (that is Investor talk for getting an accepted offer).
The inventory of homes in the Sacramento area has decreased over the past couple of months. This means there are not an unlimited amount of Sacramento homes for you to choose from. Think about it...this means that every other First Time Home Buyer and Investor in our area is bidding on the same limited amount homes. This is not a deal breaker, but it may mean that you don't get the first home you put an offer on. In fact, I would plan on that!

5. The minute your offer is accepted... tell your mortgage professional!
Why?... Because we need to go back through your file and request updated information from you. Usually this will consist of updated pay stubs and bank statements. Before your file is submitted we need to collect the items from you, get the executed contract (signed by both the Seller and you the Buyer), and order a preliminary title report.

The biggest thing you should keep in mind is every day counts when you are dealing with such a short deadline! If you are short by one day and do not get your escrow closed by November 30th... Your $8,000 is gone.

IT IS NOT TOO LATE! But you need to act quick!

Join our VIP Home Buyers Program!

We will help develop a plan to get you into a home and reach the finish line on time! Our program will match you with a Top Real Estate Agent in our area who has a great track record for getting homes sold.

We don't just write you a pre-approval letter and send you on your way. This will be a team effort to make sure your family gets into a home in time. In fact, we have talked our VIP many times into a deal where there were multiple offers on a property. Now I can't promise that we can do that in every case, but I can tell you we will go the extra mile for you from start to finish.

Don't waste another minute ... Call Todd at (916) 687-6868 ext.1 to schedule an appointment to come in to our office and get started!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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Sacramento Investors join us Tuesday and meet a Sr. Code Enforcement Officer for Sacramento County.

Sun, 27 Sep 2009 23:22:31 -0500

Please join us at the Elk Grove Real Estate Investors Group TUESDAY NIGHT - September 29th!

We have a special guest this month for our Elk Grove Real Estate Investors meeting!

Join us and meet a Sr. Code Enforcement Officer for Sacramento County. We will pick his brain and find out how to get the scoop on potentially distressed properties in our market place.
Find out...

How to locate properties with code enforcement issues!
How the county works with banks to clean up their inventory!
If Sacramento County Code Enforcement will work with Investors that have purchased red tagged homes!
How much the fines are when dealing with red tagged Sacramento homes.
And more.... bring your questions!

Visit the Elk Grove Real Estate Investor Group website >>

MEETING LOCATION
9275 E. Stockton. Blvd., Ste. 100
Elk Grove, CA. 95624
Networking - 6:30pm
Market Update - 7:00pm
Main Speaker - 7:15pm

Members are FREE!
Guests are $15

Join us and meet other Sacramento Investors who are actively investing in the Sacramento Real Estate Market!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

The First Time Home Buyer Tax Credit goes away December 1st. Read our post about how to get into a home in time! >>

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The Sacramento Investors Forum was great! Lots of good Sacramento Short Sale information

Thu, 17 Sep 2009 13:21:09 -0500

I just wanted to do a quick post to thank Amy Coleman with Keller Williams Realty for taking time out of her busy schedule to be our speaker at the Sacramento Investors Forum at the Rental Housing Association last night!

She did a great job giving us insight into the world of Sacramento Short Sales.

Did you know 18% of the homes on the market in Sacramento today are Short Sales?

That number is up from last year and in the coming months...I would suspect that number is going to jump BIG TIME!

Here is her contact information just in case you wanted to contact her:

Amy Coleman - Keller Williams Realty
(916) 283-7500
Questions@ThinkColeman.com

Thank you to the Rental Housing Association for hosting this event and their continued support!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

Have you made on offer on a Sacramento home that has been red tagged by Sacramento County?
Join us on September 29th and meet a Sr. Code Enforcement Officer with Sacramento County and get your questions answered!

Find out more>>> www.ElkGroveREI.com

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Does you wallet reflect your attitude in today's real estate market?

Mon, 07 Sep 2009 11:17:02 -0500

Isn't it shocking how the middle has fallen out of our Sacramento Real Estate Market?... and I am not talking about our property values.

As I am talking with Sacramento area real estate professionals, I notice they seem to fall into two categories.

You have the real estate professionals who have more business than they can handle and others who have closed just a handful of deals this year... if any.

Even folks who were top producers in the height of the market closing 60 deals or more a year... 2 years later have closed 4.

I find myself wondering why...

We are all working in the same market. We all put offers on the same Sacramento property inventory. We all work with the same money sources to finance our deals. So why is there such a BIG difference in their results?

The common denominator seems to be attitude.

The real estate professionals who are knee-deep in business are enthusiastic about our market... drooling at the unlimited opportunity in front of them. The group that is starving... complains, whines, tells tales of lost deals, and expects their career to be back on track in 3 years when the market recovers.

I understand both sides of this coin...Trust me!

A couple years ago we were in the starving category. Banks were dropping like flies and we watched the Internet and the news (BIG MISTAKE) everyday as they dropped one-by-one. Consumers were scared and stop buying (expessially Investors... the largest segment of our business) and the world as we knew it changed before our eyes. We sucked up so much energy getting caught up in the whole mess...our pipeline really suffered because of it. There were other factors involved... but our attitude was the #1 problem.

At some point we decided we were in this business for the long hall and as our peers jumped ship we kept paddling. I stopped watching the news because it was depressing. We realized complaining, feeling sorry for ourselves, and doom and gloom conversation put us further away from our goals. We needed to focus on the only task at hand... Generating MORE Business!

It was not easy to turn our business around. Every time we thought the business couldn't get more difficult... it did! We struggled everyday to keep moving forward. We practiced focusing on the island 3 miles ahead, instead of the 15 ft wave right in front of us we could not control.

Every month we pulled ourselves further and further away from the fog of the scarcity mindset and the sun began to shine on a more regular basis. Now we have more business than we can handle and are currently looking to hire more staff.

The truth is...Opportunities are endless right now! If your wallet is empty... You should ask yourself WHY?

Your mind plays a BIG part in your overall success. I listen carefully as every other word that comes out of the starving group's mouth is negative. Even their body language is a downer as they mope down the halls depressed.

What the starvers don't understand or see (because they are still in the fog)... is they are keeping themselves captive. Their mindset keeps them locked in their cage (they have created) while they continue to starve and wonder why. The reality is... They just need to open the door to the cage to get out of their funk.

Their lack of results has nothing to do with the Sacramento real estate market.

So if you find dust in your wallet and blame the current real estate market... I would recommend taking a cold hard look at what is really going on!

It is time to let yourself out of the self-created cage and get back in the game!

I am so thankful to be in business during our historic Sacramento Real Estate Market! It is time to hold on tight... and get ready for a fun ride!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

Do I have you excited about Sacramento Real Estate Market yet?
Enlist for our next Sacramento Investor Boot Camp and Foreclosure Tour!

We will take you out in the streets and look at the opportunities in our Sacramento Real Estate Market.
www.SacramentoInvestorBootCamp.com

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Who are the Top 10 Short Sale Realtors in Sacramento? Want to meet one?

Sat, 05 Sep 2009 15:57:00 -0500

Sacramento Short Sales are the next up-and-coming way for Investors to get a deal in today's Sacramento Foreclosure Market!

When looking for our next speaker for the Sacramento Investors Forum at the Rental Housing Association, I ran a report through our local Multiple Listing Service (MLS) to determine which real estate agents closed the most Short Sales in our market this year.

The proof is in the pudding for me.... if you did not get it closed... it did not count in my book. Keep in mind these number are based on MLS data as of 8/12/2009. Also note... only listings that were identified as Short Sales are reflected in my assessment.

I thought you might be interested to know who I came up with...

Here are the Top 10 Real Estate Agents based on closed Short Sale transactions in 2009 for Sacramento, El Dorado, and Placer counties.

Drum roll please!....

#1Pearl Ahlquist - Sellstate Realty First

#2 Amy Coleman - Keller Williams Realty
     (916) 283-7500
      Questions@ThinkColeman.com
      www.SacramentoHouseFinder.com

#3Bethany McKeighen - Maximum Real Estate

#4Crisel Centeno - Elite Real Estate Associates

#5Jose Casillas - Su Casa Realty

#6 Donna Burnett - Keller Williams Realty

#7Oscar Terrazas - American Home Real Estate

#8 Helena Riley - Century 21 Haley & Assoc.

#9 Rick Stalker - Century 21 Haley & Assoc.

#10Ed Kittle - RE/MAX Gold

I invite you to join us for the Rental Housing Association Investors Forum on Wednesday, September 5:30pm.

You will be introduced to Amy Coleman who is 2nd in line on the list! She will share with us insights into how the Sacramento Short Sale Market works and what you should expect when making an offer.

She will answer questions like...

What are the time frames I should I expect when making an offer on a Short Sale?
How are multiple offers handled?
Are certain Banks better to work with than others?
What are issues you run into when working with a 1st and 2nd mortgage?
How does mortgage insurance play a roll in your negotiations?
How long will I have to close my loan to purchase a Sacramento Short Sale?

Make sure to register quickly! Last month we had more registrations than our classroom could hold!

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This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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Why should you bring your investment dollars to Sacramento, Ca.? Part 2: Why it makes so much sense to invest here!

Sat, 22 Aug 2009 12:12:26 -0500

The conversation I want to have today is about why it makes so much sense to invest in the Sacramento Real Estate Market.

When researching a new investment area, I would recommend that you start by determining the current stage of recovery the proposed city is in and the predictions for future growth?

If you are looking at Detroit, Michigan for example... you should not solely focus on the huge drop in prices. You should really look at the cities ability and resources to "take their lumps" and get back on track.

For the last several years, Sacramento has seen home prices soar and bloat as we headed into our current economic slump.

As many of you heard, we have had a harsh correction to our Sacramento Real Estate Market and many families lost their homes and/or rental properties over the past 4 years.

So where are we now?

Right now we are seeing inventory slowly decreasing to 35 days. This means in 35 days there will be no homes left on the market. Many sources will report that we have seen an increase in sales and purchase prices. They even report that this may be an indication that we are out of the woods.

Although all those facts are true... I am afraid it does not mean we are out of the woods yet.

There is another part of the story...

What about the Sacramento Shadow inventory? The what?

According to Lori Mode at Keller Williams Realty...

"Realty Trac is reporting as of 8/12/09 5220 bank owned homes in Sacramento, CA. According to Metrolist, we currently have 1240 REO or bank owned homes either active or pending on the market in Sacramento. It appears that this leaves a difference of 3,989 bank owned homes still to come on the market. In addition, Realty Trac reports today a total of 5151 Preforeclosure in this same area."

Real more about the shadow inventory numbers >>

Yes we have seen an improvement in our market, but we have not seen the last of the foreclosures.

Look at the ADDITIONAL... 5151 homes currently in pre-foreclosure in our Sacramento Real Estate market!

What is pre-foreclosure? For the purpose of these statistics... these are homes that are currently behind a minimum of 60 days and are in the process of being taken back by the bank.

This confirms 8,000 plus opportunties are right around the corner.

The question you need to ask yourself...Will you have all of your ducks in a row in order to take advantage... to benefit?

Well wait a minute! How do I as an out-of-town investor know if Sacramento has reached the bottom of the market when this next wave of Sacramento foreclosures hits?

Well I don't have a crystal ball , but I can share with you what I do know.

Here is a graph provided by www.credit-suisse.com and is taken from a report that inventoried all adjustable rate mortgage in the country and graphed out when they were scheduled to reset.

What does reset mean?
Most adjustable rate mortgages are fixed for a specified term when originated. This graph plots when these mortgage will no longer have the fixed payment option and the borrowers interest rate will adjust to the current market pricing. This new interest rate is determined by the index the loan is tied to and the margin the bank put in place when the borrower signed the loan paperwork.

According to this graph it looks like we will not see a recovery of the real estate market as a whole until 2011 and/or 2012 (when looking at the effect of potential default due to adjustable rate mortgages).

In addition to issues with reseting adjustable rate mortgages, there are several other factors that impact our Sacramento real estate market.

Factors like future job loss and increased furlough days (not just state and county workers) will continue to impact our area.

Wait a minute!... Isn't this an article about why you would want to buy in the Sacramento market! Yes... I am getting there, but you will want to know the down side of any investment!

The good news...

Since 2005 we have seen a decline in value of more than 68% in the Sacramento Real Estate Market. This information is based on statics provided by the Sacramento Association of Realtors. You can access the statistics by visiting their website.

I have sumarized their findings below:

Keep in mind these numbers are only factoring single family homes that were sold through our local MLS system. For-sale-by-owner sales for example, would not be reflected.

Please note: Looking at the median home price is not always the best measure to use, but will give you a broad overview of what our market has been doing in the last several years.

Not only have the price of single family homes decreased in value over 68% since 2005, we have now dipped to a point where Sacramento real estate is undervalued.

So what does undervalued mean?
Right now prices have dropped to the point where it is cheaper to buy a foreclosed home than it is to build it. Our clients are having to insure their homes based on the replacement cost which is much more than what they paid for the home.

Another plus...Our rental rates have held steady (or slightly declined) for the most part in the last couple of years. It will be important that you investigate your particular target neighborhood if you wish to proceed. I will address how to research that in another post.

So the bottom has literally dropped out of the Sacramento Real Estate Market and homes are now undervalued, but the rent...for the most part... has held steady (when you compare it to the drop of our home values).

Another plus that you can not graph or predict... is what I am calling "The Room for error factor"!

The Room for Error Factor?...

Right now all conventional loans have to go through a process to meet the new HVCC requirements. Investors have to order an appraisal through the lender's assigned third party management company. This company pools together a group of appraisers and randomly selects one for the job.

What is happening is these appraisers in the new pool are not all qualified to give an estimate of value for the Sacramento market. A large portion of them are new to the industry in the last 6 months, they live 45 minutes away and don't understand our market, or just plain don't know what they are doing in general.

This has reeked havoc in our area... across the country for that matter.

I will give you an example of what is happening. The random appraiser selection process picks a total yahoo appraiser out of the hat. This person performs the appraisal and comes up with a value that is 50k less than what the buyer has it locked up for in contract because they used comparable properties from a totally different neighborhood. Now what?

You can choose to argue with the appraiser (through the third party management company) which is a 50-50 shot based on my experience. Often times the Seller is forced into a position of making a choice. Do they reduce their price by $50k and get the deal done or do they risk putting the home back on the market and running into the same value issue 60 days down the road.

The vibe I am getting from my own pipeline and other REO agents in the area... some banks are just cutting the price to get the deal done.

So again what does that mean to you as an investor. Lets say you have a home locked up for an already good price that will provide you with immediate cash flow.... Now you have an opportunity to get a BIG FAT DISCOUNT because someone screwed up.

Now I am not telling you to invest in Sacramento based on something that might happen. What I am saying is that this HVCC process is also contributing to our decline in value. Every time a bank drops the price to get the deal done, the next borrower who buys in that neighborhood has to use that reduced price home (because of a mistake) as a comparable property when they go to do their own appraisal.

It is happening folks!

The room for Error Factor is not just tied to the HVCC drama! IT could be an REO listing agent who is assigned a property where they did not realize the actual value of the home because they are not familiar with the area. It could be a bank who is tired of dealing with a particular property who lists the home low to finally get rid of it.

Trust me... the Room for Error Factor is huge right now in our current market!

By the time you hear about our Sacramento Real Estate market recovering in the news... it will be too late and we will have already hit the bottom. Why? Because they are using statics that are already several month old.

I can tell you based on the inventory of homes as of today... our Sacramento market has quickly shifted to more of a Seller's market. That may change again once the shadow inventory is released.

So I guess the thing you need to ask yourself is...

If we have seen a 68% decrease in value over the last several years ... you have to ask yourself.. how much more could it possible drop?

That is something you will need to get your head around and is a decision you can only make for yourself.

For me..

If I can get a discount on today's prices... and the home cash flows... and does not cost me too much out of pocket... what is my downside?

As a speculator all of this can be overwhelming and fear an take over!

We investors are a different breed. When everyone is running for cover, we can pick up deals where others could not get out of their fear mode.

Under valued real estate + cash flow + potential future appreciation +"room for error" = A REAL DEAL!

Another quick note I want to mention... There are are serious flippers in our area turning homes for a profit in today's market. As active member in our investor community, more and more Investors are getting into the flip game. This is not something I would recommend to an out-of-town investor... but it indicates that there are are really good deals right now in Sacramento.

I hope this information helps you to further investigate Sacramento as a place you want to bring your investment dollars!

Thanks for reading my 2nd installment of my article "Why should you bring your investment dollars to Sacramento, Ca.?:.

This series will include:

Why it makes so much sense to invest here!
Local amenities, demographics, and local major employers
Expectation of cash flow and purchase price
Samples of typical Sacramento Cash Flow Deals
How to research local rental income and vacancy rates
Selecting your Sacramento investment team

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This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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Short Sale Listings Comprise Almost 60% of MLS Listings in Sacramento

Thu, 20 Aug 2009 00:53:49 -0500

This is a great article reinforcing what we have been telling our clients! Short Sales are the next BIG thing!

Via Elizabeth Weintraub, Sacramento Short Sale Agent, 916.233.6759 (Lyon Real Estate):

When I read my recent Trendgraphix report -- available exclusively to Lyon real estate agents before anybody else gets this information -- I was astonished to learn that the number of pending short sales in Sacramento County has jumped 471.9% over the past 15 months. That's an incredible percentage. Made my eyeballs pop out of my head.

I've been listing and selling a lot of short sales in Sacramento -- been busier than I've ever been in my life -- but seeing the numbers in color solidified why my business has increased so dramatically. Above is a chart from Trendgraphix that reflects Sacramento short sale activity from May of 2008 to July of 2009. You can see that the number of active short sale listings -- the inventory -- is falling, but the number of pending sales is going through the roof.

Falling inventory is one of the reasons we're seeing so many multiple offers. Buyers are lining up to buy, breathing down each other's necks, because there is very little available to buy.

The July Trendgraphix report makes me wonder, though, if listing agents are reporting status correctly to MLS. Not every Sacramento short sale agent understands that listings with an offer accepted but not yet approved by the bank should be in "active contingent" status. Only approved short sales should be in pending status, and some agents don't realize that.

I looked at the present inventory in MLS to determine if the numbers jive for August and, sure enough, they do. As of this morning, we have 6,323 homes for sale in Sacramento County. Of those, 3,744 are short sales (2,477 are active contingent and 1,297 are active listings). Pending short sales are 810.

Another way to look at this is 2,549 active listings are not short sales, and 3,774 listings are short sales. If I've done my math correctly, this means 59.6% of all the homes on the market in Sacramento County are short sales.

And to think that lots of agents scratch their heads, wondering why any real estate agent would "bother with short sales." Well, it's the market in Sacramento. It's where we are today.

Don't you find this fascinating? Or am I the only screwball who loves stats?

---

Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.

Chart: Trendgraphix, used with permission.

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Our Sacramento Investor Boot Camp and Foreclosure Tour was a success!

Thu, 20 Aug 2009 00:15:04 -0500

Last weekend we finished up another successful Sacramento Investor Boot Camp where we took several investors out into the streets to find the best deals in today's market.

We generally do a 45 minute classroom style training where we discuss Sacramento investment market details and facts. We also discuss the power of leverage and show attendees some examples of what we can do for them as a service provider.

After reviewing the video I took during our Sacramento Investment Boot Camp, I realized how many juicy tidbits come out during the drive between properties. I am really enjoying the smaller groups as opposed to the 55 person bus scene.

Stories like...

Details of smoking hot deals and how we helped our clients
Agents reputation and relationships and how they can benefit you.
Insight into the world of working with asset managers.
Tails of the current world of underwriting... what our clients don't know

Here are some pictures from our last event!

If you are interested in attending our next Sacramento Investment Boot Camp and Foreclosure Tour, please enlist today >>!

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

Register for our popular event....

Real Estate Investors Forum at the Rental Housing Association on September 16th 5:30pm - 7:30pm!
“Everything You Wanted to Know About Making an Offer on a Short Sale Property”
The program features the advice of a Sacramento real estate agent who is one of the area’s leaders in short sales. Learn what it takes to get your offer accepted and the time line for completing the transaction.

REGISTER today! This class fills up fast and last month we had to stop taking registrations!

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