Santa Monica and Pacific Palisades local REAL ESTATE activity

FHA loans are perfect for First time Buyers!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Fri, 27 Nov 2009 09:57:36 -0600

*Check out my Mortgage Calculator to see if you qualify!!
FHA loans have been around for a long time. Actually FHA (Federal Housing Authority) has insured more than 37 million home loans for Americans since 1934! It was primarily designed to help mainly first time homebuyers (even though you do not need to be a first time home buyer anymore) to purchase a primary residence with as little as 3.5% down payment and FICO scores as low as 620. In the recent past, FHA only accounted for about 3% of home loans originated but now accounts for close to 30%! The reason is that a first time homebuyer may not have 15% down payment or a 720 FICO score that a conventional loan requires. Anyone can qualify with full documentation (pay stubs, W2s, tax returns, bank statements), a 620 FICO, 3.5% down payment, no federal liens outstanding, and is looking to buy a primary residence should be able to qualify for an FHA Loan.
FHA charges an upfront MIP (Mortgage Insurance Premium) of 1.75% of the base loan amount. FHA allows this premium to be financed. Then there is also a monthly MIP until one reaches 20% equity in their home. The monthly MIP is required for a minimum of 5 years and run 55 dollars a month per every 100k borrowed. Example for a 300k loan your buyer will have $5,250 for the upfront MIP financed into the loan amount and monthly MIP will be 165/month.
There are no longer income restrictions either!
More and more sellers/listing agents are beginning to come around and accepting FHA loans. Look at it this way - As a seller, all things being equal, FHA financing opens the doors to more potential buyers as again, most first timers do not have 15% or a 720 FICO score. Sellers shouldn't be scared of FHA buyers as it's a full documentation loan so if they are Pre-Approved by a legitimate lender the buyer is just as qualified as a Conventional buyer.

FHA may be right for you! Please contact me for more information.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Daily (almost) RE Blog:
www.RealEstateBlogLA.com
Happy Thanksgiving everybody!!!....Tom

Cash Back Rebate to First time Buyers...up to 25% of Purchase Price back to you!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Fri, 27 Nov 2009 09:54:23 -0600

Use my Mortgage Calculator
*note:Please contact me regarding my Buyer's Rebate (up to 25% of my net commission) for first time homebuyer's.
*Thinking about purchasing a home of your own? Keep these critical considerations in mind and contact me, Thomas Ray:

How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.

The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Southern California has a 5-8% appreciation rate per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.

How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.

Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. If you have more than a couple of blemishes on your report, lenders like Quicken Loans may still provide you with a loan, but you may just have to pay a higher interest rate and fees.

Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.

To determine how much home you can afford, take a look at my mortgage calculator and speak with one of my preferred lenders. My calculator will give you a range of what you may qualify for. Then call one of my lenders and tell them you were referred by me. While some may say that the "28/36" rule applies, in today's home mortgage market, lenders are making loans customized to a particular person's situation. The "28/36" rule means that your monthly housing costs can't exceed 28 percent of your income and your total debt load can't exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we're not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.

Where the money for the transaction will come from.
Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender.

The ongoing costs of home ownership.
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner's association fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.

If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.
Please contact me for more information.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Blog:
www.RealEstateBlogLA.com

Forecast for the Week:11/23/2009

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Fri, 27 Nov 2009 09:50:29 -0600

It may be a shortened work week due to the Thanksgiving holiday, but there will still be plenty of action in store. Both Monday's Existing Home Sales Report and Wednesday's New Home Sales Report will give us a read on the housing market. With many homebuyers jumping into the market to take advantage of the Homebuyer's Tax Credit - which was recently extended until June 30, 2010 and expanded to include certain qualifying existing homeowners - it will be especially interesting to see what these reports reveal. Let me know if you have any questions on the Tax Credit, or if you'd like to learn how it might benefit you or someone you know.

We'll also get several reads on the economy this week, first with Tuesday's Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity. Following will be Wednesday's Durable Goods Report, which gives an update on consumer and business consumption and buying behavior via data on items that are "non-disposable", like appliances, cars, cameras, etc. Wednesday also brings the Fed's favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) Index, found within the Personal Income Report.

More auction action...the Treasury will auction $118B in securities this week, starting with a record $44B in 2-Year Notes on Monday, a record $42B in 5-Years on Tuesday, and another record - $32B in 7-Years on Wednesday. This is an enormous amount of supply, and the market's ability to digest it all will be tested.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. Bonds and rates recently neared their best levels of the year, but were unable to make further improvements. Rates are likely to be moving higher in the coming months - so give me a call to discuss how the current rate climate might work in your favor, before these great rates slip away.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an Agent on my site:
www.LAexclusiveProperty.com
My Daily RE Blog:
www.RealEstateBlogLA.com
Have a great Thanksgiving everybody!.....Tom

Last week in Review:11/23/09

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Fri, 27 Nov 2009 09:46:53 -0600

The media's recent analysis of the economy has run the gamut of late, some optimism, some pessimism...but also some confusion as they attempt to decipher recent economic reports, particularly relating to the job market. Let's look at a few of the recent reports, and get behind the headlines to decipher what they really mean.

Last week's Initial Jobless Claims Report showed that 505,000 people filed for unemployment benefits, which was about what was expected, and represented a ten month low for the report. The Continuing Jobless Claims Report, which indicates the total number of people collecting unemployment benefits, fell by 39,000 to a total of 5.61 Million.

The media often spins this data as good news - but the labor market remains in exceptionally tough shape. The Continuing Claims number declining from a record high of 6.82M in June to last week's 5.61M is the result of only two potential things happening: People are finding jobs and no longer need unemployment benefits, or they have been unemployed for so long that their benefits are running out before they've been able to find a job. With a 10.2% Unemployment Rate looking like it will move higher still, it is most likely the latter. Another clear sign of a very troubled labor market was back on November 6th, when President Obama signed a bill that will extend unemployment benefits by an additional 20 weeks...there would be no reason to do this if jobs were being created.

In other news, October Retail Sales were weak overall, which is concerning for several reasons. One somewhat overlooked impact is that tax receipts from retail sales help both the individual states and the country as a whole. If the consumer doesn't spend - perhaps due to job loss or lower family income - and there are therefore less tax receipts from retailers, the government runs an ever-deeper budget deficit. The only way to get out of a deficit is to either raise other taxes or cut spending - and neither option is very popular. Many states are in poor fiscal shape because of soaring budgets and lower tax receipts.

There aren't any easy answers - but it's clear that the labor market needs to see some serious improvement for the economy to recover in a significant way.

Bonds and home loan rates were unable to hang onto improvements made in the earlier part of the week, and ended the week around the same levels as where they began.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an Agent on my site:
www.LAexclusiveProperty.com
My Daily RE Blog:
www.RealEstateBlogLA.com
Have a great Thanksgiving everybody!.....Tom

Questions for the Lender:Part III:Lender Interview:Dean Wong from First Cap. Mortgage

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 22 Nov 2009 20:28:17 -0600

The following is Part III of an ongoing series of interviews with my Preferred Lender:Dean Wong. His contact info follows the Interview.
Thomas Ray:Dean, how are you these days?
Dean Wong:Thomas, I am great! Hopefully we can help clear up some questions your clients might have with all the new regulations and products.
FHA questions:
1).Thomas Ray:Dean, my clients are showing renewed interest in FHA loans. Can anyone qualify? What is the upfront cost..2%? Are there income restrictions? Do Sellers respond well when they see offers with this loan?
Dean Wong:FHA loans have been around for a long time. Actually FHA (Federal Housing Authority) has insured more than 37 million home loans for Americans since 1934! It was primarily designed to help mainly first time homebuyers (even though you do not need to be a first time home buyer anymore) to purchase a primary residence with as little as 3.5% down payment and FICO scores as low as 620. In the recent past, FHA only accounted for about 3% of home loans originated but now accounts for close to 30%! The reason Thomas is that a first time homebuyer may not have 15% down payment or a 720 FICO score that a conventional loan requires. Anyone who can qualify full documentation (pay stubs, W2s, tax returns, bank statements), has a 620 FICO, 3.5% down payment, no federal liens outstanding as is looking to buy a primary residence can qualify for an FHA Loan.
FHA charges an upfront MIP (Mortgage Insurance Premium) of 1.75% of the base loan amount. FHA allows this premium to be financed. Then there is also a monthly MIP until one reaches 20% equity in their home. The monthly MIP is required for a minimum of 5 years and run 55 dollars a month per every 100k borrowed. Example for a 300k loan your buyer will have $5,250 for the upfront MIP financed into the loan amount and monthly MIP will be 165/month.
There are no longer income restrictions either.
More and more sellers/listing agents are beginning to come around and accepting FHA loans. Look at it this way - As a seller, all things being equal, FHA financing opens the doors to more potential buyers as again, most first timers do not have 15% or a 720 FICO score. Sellers shouldn't be scared of FHA buyers as it's a full documentation loan so if they are Pre-Approved by a legitimate lender the buyer is just as qualified as a Conventional buyer.

Buyer Tax Credit questions:
1)Thomas Ray:The President signed into law some new regs. as they relate to the Buyers Credit. What are the changes and who qualifies now?
Dean Wong:President Obama recently signed a bill extending the FTHB (First Time Homebuyer's) tax credit which was due to expire on 11/30/09. New provisions now include higher income limits as well as allowing "repeat" home buyers to take advantage of the tax credit! First timers receive 8k and repeat buyers can receive 6.5k now! I went ahead and attached a nice cheat sheet from NAR (National Association of Realtors) for you and your clients regarding the tax credit bill. Please call/email or have your clients do the same should you have further questions.

Finding a good lender:
1)Thomas Ray:My clients are worried that choosing the wrong or inexperienced lender could affect their escrow. How could this happen.
Dean Wong:This does happen far too often Thomas. The lending environment is much more detailed oriented now than ever before. Buyers should work with a trusted lender that has experience and know how to navigate the lending process from beginning to end. For example, I've seen very often lenders "Pre-Approve" a buyer for X price point without even asking for income data like pay stubs or tax returns! Problem is that improper expectations are set for a certain price point, you as a realtor show homes in this price point, get the offer accepted, buyer gets into escrow and when it's time to submit the income data to the underwriter for loan approval, guess what? Escrow needs to be canceled as the inexperienced lender did not do a good job Pre-Approving the buyer from the get go. This makes you look bad in the real estate community by representing unqualified buyers and buyers are now discouraged. They find out their real price point and of course it doesn't compare to the house they were in escrow on but wasn't qualified to buy! Everyone is frustrated.

Thomas Ray:Is using a "Lending Tree" type service a good idea to shop rates?
Dean Wong:It is not Thomas. Such sites are advertising portals for banks. A buyer's information is sold as "leads" to numerous lenders who pay for this information. A buyer consents to having their credit information run, not once, but as many times as there are buyers of these leads! It has always astonished me how people ask for referrals for restaurants but when it comes to one's most important purchase in their lives they look on the internet and are willing to trust someone they do not know. A buyer should work with someone their trusted realtor, accountant or attorney referred to them.   Or possibly even working with a referral that a friend or family member recently worked with for their loan is okay too if they have glowing reviews about them closing on-time and as quoted.
But I'd never go blindly into a transaction of this size with someone I found on the internet because the closing costs is say 50 bucks cheaper. If you refer me a client Thomas, my main goal is to take care of your client to the best of my ability so you and the clients are comfortable in referring others to me. Unfortunately, someone you may find on the internet who "advertises" a too good to be true rate probably has no allegiance to you or the buyer outside of closing just that one deal. And unfortunately, what you and I have seen far too often I'm sure is one who fall victim of internet bait and switch advertisement, get too deep into an escrow to cancel and just "takes" the final rate as they really want the home. It's a shame. For me, you and my clients are life long.
I've been in the business close to 9 years now and my client satisfaction rate is 99.3%. My philosophy is simple - I do what I say and I deliver what I quote on time and with no excuses.
Thank you Dean!! Your knowledge and passion are unmatched in the industry. I look forward to our next mutually satisfied client.
Please contact Dean Wong and tell him you saw this interview on my Blog:www.RealEstateBlogLA.com
Dean Wong
First Capital Mortgage

Office:310-656-8210
Cell:310-344-3252
Dean Wong Link
Email: dwong@firstcapitalmtg.com
Please contact Dean AND also use our Mortgage Calculator.
Thomas Ray,M.S.,Realtor
Search the MLS like an agent on my Site:
www.LAexclusiveProperty.com
My Daily Blog:
www.RealEstateBlogLA.com
Have a great week everybody!!...Tom and Dean

Fed Scaling Back Bond Buys..this affects Interest Rates!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 22 Nov 2009 12:47:49 -0600

Last week (11/13) the Federal Reserve stepped in with more buying of Mortgage Backed Securities (MBS), helping Bond prices recover from news of a weak Treasury Auction. Overall, home loan rates bounced around last week and ended the week very slightly improved.

But that said, we can't "push our luck" and think the Fed will continue to step in and help support home loan rates...we have to remember that the Fed is actually winding down exactly this type of buying support.

The Federal Reserve's purchases of MBS peaked at an average of $25 Billion per week back in May - and they are getting closer every day to being done spending their allotment of $1.25 Trillion. Since they announced that their remaining purchases would be rationed out until the end of March 2010 - but that they wouldn't be making any additional purchases beyond the original commitment - the average purchases per week have been moving lower, down to $14 Billion per week so far in November.

Why is this important? Because home loan rates are based on MBS - so when the Fed agreed to be a big buyer, it helped provide a market and helped keep MBS prices high and home loan rates low. So as the Fed's program wraps up and eventually stops, home loan rates are quite likely to be on the rise. So while rates are still very good, they may not be for long. Let's be sure to talk if you haven't yet explored how the current rate environment might benefit you or someone you know.

More employment news arrived, and it is interesting to hear the media and other experts proclaim it to be "all good news". Initial (or First Time) Jobless Claims came in at the lowest reading in 10 months and Continuing Unemployment Claims also fell lower as well - and at first blush, this seems to be very good news. But looking closer, we see that the lower Continuing Claims number was probably the result of unemployment benefits expiring before people could find work - rather than people dropping off of benefits because they found a job. Now that unemployment benefits have been extended by new legislation, we should get a more accurate look at how many people are actually unemployed.

Please let me know how I can assist you in your home purchase. I look forward to earning your business.
Thomas Ray,M.S.,Realtor,Cell:310-420-1149
Search the MLS like and agent on my site:
MLS Search Page
Almost daily Blog Updates on my blog:
www.RealEstateBlogLA.com

UPDATE::Element Lofts Marina Del Rey,CA at Auction..MUST USE BoA LENDER

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 22 Nov 2009 12:37:47 -0600

Element Lofts in Marina del Rey,CA are going to Auction in December..please see my post on this on my blog:
www.RealEstateBlogLA.com

*IMPORTANT UPDATE::If you plan to bid, you must be PRE-APPROVED by BANK OF AMERICA. This is part of the settlement judgement.

There is also an Auction Training Class in December that you need to attend.
With any of my clients interested in bidding, I will be with you at the auction (I have to be there), helping you understand the market value based on SOLD COMPS in the area. This will assure your bidding will be appropriately competitive.

For further assistance, please contact me:
Thomas Ray,M.S.,Realtor
Cell/Txt.:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Daily Blog:
www.RealEstateBlogLA.com

Element Lofts Marina Del Rey,CA at Auction

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Wed, 11 Nov 2009 18:08:03 -0600

ELEMENT LOFTS ON AUCTION
Please contact me, Thomas Ray, if you are interested in the Auction.
I will need to Register you at the Element Lofts so you have an Agent representing you.
Thomas Ray,M.S.,Realtor
Cell:310-420-1149
Search The MLS like an Agent on my Site:
www.LAexclusiveProperty.com
My Blog: www.RealEstateBlogLA.com
Have a great week everybody!

This court-ordered auction offers you a phenomenal opportunity to purchase a new beach-close home for as low as $295K.

MINIMUM BIDS STARTING AT $295,000 - UP TO 66% OFF!

There is so much information that we would like to share with you and because registration and pre-qualification are required to participate in this event, we highly encourage you to visit us as soon as possible during our convenient hours; open 11 a.m. to 6 p.m. Monday - Friday, and 10 a.m. to 6 p.m. Saturday and Sunday.

Element is located at 4141 Glencoe Avenue in Marina del Rey. Please be sure to visit the team in suite 210 and we will answer all of your questions, as well as get you started on a tour of this beautiful community. Lenders are also available daily at Element to answer all of your financing questions and to pre-qualify you to attend this exclusive, one-day court ordered auction event.

Because this amazing event is happening so quickly, on December 13 at the Ritz-Carlton, Marina del Rey, NOW is the time to act and to vist Element to tour the beautiful models, as well as the 41 available condominium homes that will be offered at historically low prices.

Please contact me, Thomas Ray, if you are interested in the Auction.
I will need to Register you at the Element Lofts so you have an Agent representing you.
Thomas Ray,M.S.,Realtor
Cell:310-420-1149
Search The MLS like an Agent on my Site:
www.LAexclusiveProperty.com
My Blog: www.RealEstateBlogLA.com
Have a great week everybody!

How the NEW Home Buyer Tax Credit will work

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Mon, 09 Nov 2009 21:57:29 -0600

·        Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
·        Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30, 2010.
·        Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.
·        Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
·        How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

As always, please let me know how I can help you, your family, or friends with their Real Estate needs.
Thomas Ray,M.S.,REALTOR,Cell:310-420-1149
Search the MLS like an Agent at my site:
www.LAexclusiveProperty.com
And, read my BLOG:
www.RealEstateBlogLA.com
Have a great week everyone!!

Biggest Home Price Declines Ever

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Fri, 02 Jan 2009 10:09:34 -0600

"The bear market continues; HOME PRICES are back to their March 2004 levels," (Is this the Bottom????)...says David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "Both composite indices and 14 of the 20 metro areas are reporting new record rates of decline. As of October 2008, the 10-City Composite is down 25.0 percent from its mid-2006 peak, and the 20-City

Three of the metro areas have given back, on average, more than 30 percent of the value of homes since October of last year. Phoenix remains the weakest market, reporting an annual decline of 32.7 percent, followed by Las Vegas, down 31.7 percent, and San Francisco down 31.0 percent. Miami, Los Angeles, and San Diego were close behind with annual declines of 29.0 percent, 27.9 percent and 26.7 percent, respectively.

My Site:www.LAexclusiveProperty.com
Buyer Information, Market Review, Trends

Investing in Multi-Family vs. Single Family

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 28 Dec 2008 10:50:39 -0600

Here are some of the advantages that investing in Multi-units Buildings has over Single Families.

Cash flow on a multi-family is always greater than that of a single family. Simply because you have more rents coming in. The more units you have under one roof, the less risk you have. If you have a single family house and you lose your tenant, you've lost 100% of your income. In some instances, this could be your entire profit for the year. If you had a three family and lost a tenant, you still have two rent coming in to pay your expenses.
Economies of scale are in mulit-unit buildings. If you have six single family houses opposed to one six family, you have six roofs to be replaced or repaired, six lawns to be maintain, six tenants spread out through out your city or town. In your six family you have one roof, one lawn and your tenants are centrally located. Economies of scale are in your favor.
There's a lot less competition than there are in single family houses. Why? Because no one is out there teaching how to do it and all the single family guru's make flipping single family houses sound as easy as chewing gum in the dark. The smart investors put multi-units in their portfolios along with single family houses.
Because of the bigger cash flows, you can afford to hire management companies to manage your tenants, thus eliminating that hassle while you go out and do what you do best (or should do best), find and finance them.
Your pay days are a lot bigger when you finally sell your property. This is because an apartment complex cost more than single family homes, because of this they obtain a greater dollar amount of appreciation. For example, a $100,000 single family house will in a market that appreciates 10% will be worth $110,000 while a three family house worth $300,000 in the same market (10% appreciation) will increase to $330,000. That's $20,000 more money in your pocket! You've know a few people who have made a lot of money flipping single family houses, but if you think of the all the people you know who have become extremely wealthy through real estate, you'll realize that they did it through owning multi-units (apartments).

Please contact me (Thomas Ray) now to discuss the status of Multi-Family Properties in Southern California.
My Site:www.LAexclusiveProperty.com
Keller Williams Realty Office:310-862-1786 Market Conditions, Buyers Market, Market Review, Trends, Multi-Family, Apartment Buildings

Dr. Sam Chandan Video link on Multi-Family/Apt. Investments

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 28 Dec 2008 10:45:30 -0600

Dr. Sam Chandan (formerly Chief Economist with REIS) speaks on the status of the Multi-Family Apartment market. I normally do not post links on my Blog, but Dr. Sam has his finger on the pulse and speaks on why now is the time to Buy!
Here is the Link
Please contact me for all your Investment needs.
My site:www.LAexclusiveProperty.com
Market Conditions, Trends, Multi-Family, Apartment Buildings

Buy Multi-Family NOW!!!..the SoCal market is down...Rents are UP!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Thu, 18 Dec 2008 10:18:26 -0600

(Please contact me to discuss your long term Passive Income Strategy that includes the purchase of Multi-Family Property. My Team at Keller Williams will show you the benefits in this down market.)

The Apartment Rental Market continues to benefit from weak home sales!

"...multifamily is the bright spot," George Ratiu, economist at NAR Research said. "This is in large part due to a high number of foreclosures, and the fact that people still need housing, no matter what is going on in the economy."

"Demand for this sector is healthy with rent growth being positive, if not stellar." NAR forecasts multifamily vacancy rates for the third quarter of 2009 at 5.8 percent, unchanged from the third quarter of this year, which is still low compared with other sectors. Markets with the tightest vacancies include San Diego, northern New Jersey and Boston, with vacancy rates of 4.2 percent or less. Areas with the highest vacancies include Jacksonville, Fla.; Phoenix; and Orlando, Fla., with vacancies of 8.5 percent or higher.

"To a large extent, this is true for the multifamily sector as well," says Ratiu. According to NAR's research, multifamily lending stood at $9.7 billion in the third quarter of 2008 but is expected to drop to $1.5 billion in the fourth quarter, according to estimates made by NAR. "This is a significant drop because financing has pretty much come to a standstill. This is mainly because of a lack of financing. Also, there is a wave of refinancing across the country but very little capital going around," says Ratiu.

Lawrence Yun, NAR chief economist, says there are serious structural problems in commercial lending. "Although access to residential mortgages has improved, the opposite is true for commercial loans," he says. "We need liquidity for commercial mortgage-backed securities not only to free the market, but also to rollover existing debt. At the same time, the loss of jobs has had a significant impact on the demand for commercial space."

Yun added that default rates on commercial real estate loans are very low by historical standards. "However, commercial defaults could deteriorate significantly without a properly structured stimulus that addresses liquidity for commercial mortgages," he said.

The year 2009 is expected to fare better, according to Raiu, with demand going further up. "This is partly because single-family construction has pretty much halted, and with mortgage being extremely difficult to get, people are turning toward multifamily housing. In addition, with the economy being where it is, and home prices falling, consumer confidence is down and people are wary of buying, not knowing when the bottom will be reached."

All this is having a modest impact on rent increases. "Rent is expected to increase 2.8 percent in 2009 as opposed to 2.9 percent in 2008, 3.1 percent in 2007 and 4.1 percent in 2006," says Ratiu.

Multifamily net absorption is expected to be 24,400 units in 59 trackedBy Anuradha Kher, Online News Editor

Washington, D.C.--With the exception of the apartment rental market, which continues to benefit from weak home sales, all commercial real estate property types are showing grim results for 2008, with an equally grim forecast for 2009, according to the Commercial Real Estate Outlook of the National Association of Realtors (NAR).

"If anything, multifamily is the bright spot," George Ratiu, economist at NAR Research, tells MHN. "This is in large part due to a high number of foreclosures, and the fact that people still need housing, no matter what is going on in the economy."

Demand for this sector, Ratiu says, "is healthy with rent growth being positive, if not stellar." NAR forecasts multifamily vacancy rates for the third quarter of 2009 at 5.8 percent, unchanged from the third quarter of this year, which is still low compared with other sectors. Markets with the tightest vacancies include San Diego, northern New Jersey and Boston, with vacancy rates of 4.2 percent or less. Areas with the highest vacancies include Jacksonville, Fla.; Phoenix; and Orlando, Fla., with vacancies of 8.5 percent or higher.

The outlook also shows that with the exception of cash transactions, investment activity in commercial real estate sectors is nearly at a standstill because commercial lending has essentially halted, while job losses are curtailing the demand for space.

"To a large extent, this is true for the multifamily sector as well," says Ratiu. According to NAR's research, multifamily lending stood at $9.7 billion in the third quarter of 2008 but is expected to drop to $1.5 billion in the fourth quarter, according to estimates made by NAR. "This is a significant drop because financing has pretty much come to a standstill. This is mainly because of a lack of financing. Also, there is a wave of refinancing across the country but very little capital going around," says Ratiu.

Lawrence Yun, NAR chief economist, says there are serious structural problems in commercial lending. "Although access to residential mortgages has improved, the opposite is true for commercial loans," he says. "We need liquidity for commercial mortgage-backed securities not only to free the market, but also to rollover existing debt. At the same time, the loss of jobs has had a significant impact on the demand for commercial space."

Yun added that default rates on commercial real estate loans are very low by historical standards. "However, commercial defaults could deteriorate significantly without a properly structured stimulus that addresses liquidity for commercial mortgages," he said.

The year 2009 is expected to fare better, according to Raiu, with demand going further up. "This is partly because single-family construction has pretty much halted, and with mortgage being extremely difficult to get, people are turning toward multifamily housing. In addition, with the economy being where it is, and home prices falling, consumer confidence is down and people are wary of buying, not knowing when the bottom will be reached."

All this is having a modest impact on rent increases. "On an average, rent is expected to increase 2.8 percent in 2009 as opposed to 2.9 percent in 2008, 3.1 percent in 2007 and 4.1 percent in 2006," says Ratiu.

Multifamily net absorption is expected to be 24,400 units in 59 tracked metro areas this year and 142,000 in 2009, according to the NAR Outlook.

Thomas Ray,M.S.,Realtor
Cell:310-420-1149,Office:310-862-1786
My Site: www.LAexclusiveProperty.com My Blog: www.RealEstateBlogLA.com
Keller Williams Realty
4644 Admiralty Way
Marina del Rey,CA 90292
Market Conditions, Multi-Family, Apartment Buildings, Passive Income

Thomas Ray,Realtor,has moved to Keller Williams Realty/Marina/LA

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Mon, 15 Dec 2008 22:18:49 -0600

I am very excited to be at Keller Williams Realty in Marina del Rey.
Please go here to see why I chose Keller Williams.
Thomas Ray,M.S.,Realtor
Office:310.862.1786,Cell:310.420.1149
Announcements, Thomas Ray has moved to Keller Williams
www.LAexclusiveProperty.com

Fed to Cut the Fed Funds Rate

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Mon, 15 Dec 2008 21:58:40 -0600

This week, look for the Fed to cut the Fed Funds rate (the rate for overnight loans between banks) by a half point, to 0.50 percent. While a cut by the Fed often causes home loan rates to rise (because a Fed cut can lead to inflation, which is the arch enemy of Bonds and home loan rates), the deflationary environment we are currently in may prevent home loan rates from worsening.

Another event to note on Tuesday is the release of November's Consumer Price Index (CPI) Report. This widely watched inflation indicator tells us how much more expensive goods and services are this month over last month, and with recent concerns on deflation - this will be an important report to watch.

Bonds and home loan rates ended the week at their best levels of this year and in over five years. Let me know if you want some more information about how you can take advantage of the current situation.
Have a safe week!

Thomas Ray,M.S.,Realtor
Keller Williams Realty
Office:310.862.1786,Cell:310-420-1149
www.LAexclusiveProperty.com
Rates, Financials, Fed Action

Is Your Property Tax Bill Too High?

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Mon, 15 Dec 2008 21:55:24 -0600

Income tax, sales tax, estate tax, excise tax, alternative minimum tax...and just when you thought you'd paid them all...along comes your property tax bill as a homeowner. But did you know that the National Taxpayers Union estimates that as many as 60% of homes are assessed for too high of a value, resulting in an incorrectly larger property tax bill? Chances are good you might be in that group of people paying too much, so taking the time to review your property tax bill could save you a nice chunk of change.

The good news is that it's easy...First, contact your local tax assessor's office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don't be surprised if the assessed value is lower than what you think the mark et value for your home is--many counties use a formula which uses a percentage of mark et value to determine assessed value. Ask what the formula is, because an assessment which is less than mark et value still might be too high.

If you have a current appraisal that supports the value being lower using recent mark et-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one--just call me for a referral to a great appraiser. You can also visit the local assessor's office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. Additionally, contact me to get in touch with a great Realtor who knows your area. They will be able to give you current mark et information for your neighborhood, and help you see how your mark et value and assessed value stacks up against your neighbors'.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

More good news - according to the National Taxpayers Union , about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home. Please feel free to contact me for more information on this money-saving tip.

Filed under: Finances, Home tips, Financials, Property Tax
Thomas Ray,M.S.,Realtor
Keller Williams/Marina
My Site: www.LAexclusiveProperty.com

REO PRE-LISTINGS NOW AVAILABLE ON MY RE SITE

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Wed, 26 Nov 2008 00:32:25 -0600

I am now featuring REO Pre-Listings on my site. If you or your Buyers are not familiar with a Pre-Listing, you are not alone.

A Pre-Listing is an REO that may not be vacant so it is not on the market. However, the Bank will accept offers on these allowing your Buyers to beat the rush to buy REO homes in the very HOT REO MARKET here in Los Angeles,CA.

Here is the REO Pre-Listing Link:
REO Pre-Listing

My Site: www.LAexclusiveProperty.com

Save on Your Credit Score this Holiday Season

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Mon, 24 Nov 2008 11:09:50 -0600

24 November 2008
Save on Your Credit Score this Holiday Season

To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps:

Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating.

Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture.

Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower.

Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating.

Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation.

Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in.

Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit.
My Site: www.LAexclusiveProperty.com

Filed under: Buyer Information, Community Information, Credit for Buyers, Credit Cards

My Other Blog www.RealEstateBlogLA.com

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 22:13:45 -0600

My Other Blog:www.RealEstateBlogLA.com

Multi-Family Financing Available and Reasonable

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:49:15 -0600

15 October 2008
Multi-Family Financing Available and Reasonable

Permanent Financing Availability, Cost Remains Reasonable.

The MULTI-FAMILY SECTOR is relatively isolated from Wall Street. But REITs (Real Estate Investment Trusts) are being impacted. Their dividend yield rate is falling, which is making it difficult for them to get deals done.

The LIBOR RATES have been bouncing around in the last three weeks. The Bank of England sets the target LIBOR rate and controls it by injecting money into the bank. But due to the credit crunch in the U.K., that hasn't been easy to do. This has caused the LIBOR rate to go up.

No one wants money in savings these days and this is driving treasury rates down and causing the spreads to widen. Having said that, the overall best debt rate you can find for MULTI-FAMILY loans right now is 6 percent, which is pretty good.

With three-month LIBOR at 4.8 percent, a 250 bpt spread produces a 7.3 percent interest rate and a constant in the 8.3 percent range with a 30-year amortization schedule. This compares to rates in the 5 percent range, with no required amortization before the credit crisis.

The stock market activity in the past few days has not had a tangible effect so far on the availability or cost of MULTI-FAMILY financing. The stock market over the past few days has had no effects other than on the valuation of the multifamily company stocks.

Mortgage liquidity for MULTI-FAMILY continue to be relatively strong because of Fannie Mae and Freddie Mac. Rates remain competitive.
My Site: www.LAexclusiveProperty.com

Filed under: Market Conditions, Rates, Interest Rates, Multi-Family, Apartment Buildings

Palm Springs Vacation/2nd Homes---Great time to Buy in the Desert!!!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:41:48 -0600

22 October 2008
Palm Springs Vacation/2nd Homes---Great time to Buy in the Desert!!!
Palm Springs Area Down in Price!--Now is the time to Buy!!
Real estate prices have dropped more than 21% in the past year making the Palm Springs Valley even more attractive to residents of Southern California. Many are buying their retirement and second homes now taking advantage of the buyer's market. Demand is expected to pick up in coming months as snowbirds, many from Canada, flood the area to enjoy the weather as well as world class golf, dining, and shopping. If you thought you couldn't afford a home on a golf course, take another look.
My Site: www.LAexclusiveProperty.com
Filed under: Market Conditions, For Sale, Market Review, Palm Springs Vacation Homes, Palm Springs

September Sales Los Angeles and Price Report--Sales Soared!!!

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:29:58 -0600

31 October 2008
Sept Sales and Price Report--Sales Soared!!!
September sales and price report: Sales in California soared 96.7 percent and the median price of an existing single-family home decreased 40.9 percent compared with September 2007.

Statewide sales in September surpassed the 500,000 mark for the first time in more than two years, rising 2.3 percent compared with August, and 96.7 percent from a year ago. The dramatic increase in sales can be attributed to weakness in the market from a year ago with the early onset of the credit crunch. Similar increases in sales occurred in the early 1980s when the market was climbing out of a comparatively steep downturn in sales. The market is expected to register significant year-to-year percentage gains in the coming months as current sales are compared against extremely low numbers that prevailed during the fourth quarter of last year.

The median price of an existing, single-family detached home in California during September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007. It is still too early to determine if the statewide median price has begun to stabilize, and recent events in the economy and financial system contributed to the decline in September. The median home price also will continue to face downward pressure from the large share of distressed sales and a dramatic change in the sales mix. A year ago, the under $500,000 price range accounted for 46 percent of sales but shifted to 76 percent as of September.

Unsold Inventory Index for existing, single-family detached homes in September 2008 was 6.5 months, compared with 16 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

The median number of days it took to sell a single-family home was 46.1 days in September 2008, compared with 56.7 days for the same period a year ago.
My Site: www.LAexclusiveProperty.com
Filed under: Market Conditions, Announcements, Buyer Information, los angeles home sales, Buyers Market, Trends, New Home Sales

Multifamily Investment Sales Surge in Los Angeles

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:22:31 -0600

14 November 2008
Multifamily Investment Sales Surge in LA
As prices for Multi-Family properties in Los Angeles potentially reached their bottom in the third quarter, San Francisco came close to bottoming out, while New York City remained far from it, according to the Investment Properties Q3 2008 report. The report looks at multifamily investment sales only.

The findings are positive for the Los Angeles market; and very soon, investors are going to come here and start buying up the inventory.

Los Angeles is the only city that had an increase in the number of sales compared to both Q3 2007 and Q2 2008. This was driven by the large number of distressed property sales (trustee sales, notices of default or REO's) in this market. Fifty-four percent of all sold properties in the third quarter of 2008 were in distress this year.

Los Angeles, as well as San Francisco, experienced significant median price declines, well below their previous two-year record lows. Compared to the third quarter of 2007, the median sale price fell 35.1 percent in Los Angeles and 4.6 percent in San Francisco. The median sale price per unit fell 25.4 percent in Los Angeles and 8.5 percent in San Francisco, when compared to Q3 2007.

In San Francisco, the number of closed transactions for multi-unit investment properties was down 3.2 percent compared to Q2 2008, and down 9 percent compared to Q3 2007. San Francisco is looking pretty attractive now-prices are not quite at the bottom-but getting there. There is cash on the sidelines, so as soon as prices drop, transactions will start rolling in.

Now is the time to buy Income producing property in the Los Angeles area. Loans are available and the market is primed to go up soon.
Please contact me, Thomas Ray, for more information on what me and my team are seeing as the best values now!
My Site: www.LAexclusiveProperty.com
Filed under: Market Conditions, Buyers Market, Trends, Multi-Family, Apartment Buildings, Income Property

California Home Prices DOWN 40.9 percent!--NOW is the time to BuY

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:15:28 -0600

The median price of an existing, single-family detached home in California during September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007. It is still too early to determine if the statewide median price has begun to stabilize, and recent events in the economy and financial system contributed to the decline in September. The median home price also will continue to face downward pressure from the large share of distressed sales and a dramatic change in the sales mix. A year ago, the under $500,000 price range accounted for 46 percent of sales but shifted to 76 percent as of September.

Unsold Inventory Index for existing, single-family detached homes in September 2008 was 6.5 months, compared with 16 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

The median number of days it took to sell a single-family home was 46.1 days in September 2008, compared with 56.7 days for the same period a year ago.
My Site: www.LAexclusiveProperty.com under: Market Conditions, Buyer Information, los angeles home sales, Buyers Market, Market Review, New Home Sales
Filed

Foreclosure sales dropped by 39.1

Thomas Ray (L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City) — Sun, 23 Nov 2008 21:07:16 -0600

20 November 2008
Foreclosure sales dropped by 39.1
Foreclosure sales dropped by 39.1 percent from the prior month, due to significant increases in cancellations and postponements. Under California law, scheduled foreclosure sales can be postponed for a period of up to one year, until they are either cancelled or sold. Cancellations, where the home is taken out of foreclosure, increased by 78 percent in October, resulting in nearly 20 percent of foreclosure sales scheduled for October being called off. Notice of Default filings, which start the foreclosure process, continue to be significantly impacted by CA State Senate Bill 1137, as lenders work through the new requirements the law imposed. Notices of Trustee Sale, however, rebounded after a significant drop the prior month.
My Site: www.LAexclusiveProperty.com
Filed under: Buyer Information, Foreclosures