Julian's Pole Out Ceremony
From the Julian Chamber of Commerce.
This event celebrates the completion of the 20A Utility Conversion Project along Main Street in Historical Downtown Julian.
Representing a significant joint effort among the County of San Diego, Community of Julian, SDG&E, AT&T & Cable USA
June 19th at 11:00 a.m. Julian residents, project participants, and San Diego County local dignitaries will "gather round the pole." This "pole" is the last one slated for removal in this phase of Julian's "Street Beautification Project." The plan is to have it ceremoniously popped out of the ground and trucked away. It might possibly be an emotional farewell for some of us.
It started in 2003 as a simple idea offered by the Chamber Marketing Directors: Julie Degenfelder, Wayne Moretti, and Frank Pease. It became a vision of economic benefits for local merchants and an esthetic gift to residents and all who travel through Julian. They had no formal plan and soon learned similar ideas had not produced the desired result.
A team evolved, two residents dedicated to a program they considered a "once-in-a-lifetime" opportunity. They researched on line, asked questions, and would never accept "no" as final answer. They took up the cause, knowing they would have to persevere; literally years of researching and responding to funding requirements, and detailed planning recommendations would require their attention.
Near the end of 2004 our team of two walked about town with state and county officials and electric, telephone and cable representatives too. They met several key professionals who initially offered advice but became allies upon experiencing the dedication these two demonstrated. During one official "walk through" a minimum easement requirement of 5 ft. needed to be verified. The "petite one" laid down on a sidewalk and used her height to prove the required easement was satisfied. (Now that's dedication!)
During 2005 the State of California approved the project and placed Julian at the top of the Capital Improvements list for the upcoming five year cycle. On February 28, 2007 the Board of Supervisors of the County of San Diego ordained Underground Utility District No. 104. The dedicated two actually allowed themselves to believe; the idea, it might really happen, and in their lifetime too!
Under the direction of Lawrence Hirsch, Utilities Coordinator for the Department of Public Works, the tangible phase of the project was set in motion. In spring of 2008 the entire town became aware of colored markings on the streets and sidewalks and (small town that we are) rumors flew through town faster than the 4th of July Vintage Aircraft Flyovers. Fears of total business interruption during Apple Days arose. Yes, we did stub our toes once or twice but Superintendent David Hitzeman of A. M. Ortega General Engineering Contractor assembled a crew of courteous individuals that responded to concerns immediately. Everyone was treated with respect as the streets and sidewalks were sliced & diced and then swept clean. The crews departed on Thursdays to provide normal weekends for Julian. Roadwork ceased as harvest season arrived.
Apple Days was a bit earlier and lasted a bit longer than usual. The Triangle Club presented their Melodrama as elegantly as always. Through the new donated windows framed so beautifully by new curtains, one could look out from Town Hall on winter and never imagine the view would change in such a dramatic way. The winter of 2008 was mild and an early end of precipitation worked well for those of us anxious to see the wires disappear.
Spring, 2009 will have only two days remaining when we wave "good bye" to the last pole of this project. The initial proposal, from idea to pole out, has taken less than six years. The once-in-a-lifetime opportunity to restore downtown Julian to a vision of our past is quite a gift from two residents.
Julie Degenfelder and Wayne Moretti have each indicated they view the improvement project as a lifetime commitment to Julian. It sounds like the next chapter is about to begin. How do we say thank you for what we have already been given?
June 19, 2009
Corner of Main and Washington
Ceremony at 11 a.m.
Refreshments Immediately Following in the Town Hall
You finally found the perfect home and have an accepted offer. You are preapproved for an FHA loan and all the closing costs and fees are acceptable, but have you thought about the condition of the home? Will there be issues called out by an FHA appraisser that might be factored in to costs and who will pay for it?
Are you asking the following questions?
•1. Is the Roof in good condition?
•2. Are the appliances in place?
•3. Can the crawl space be accessed?
•4. Can the Attic be accessed?
•5. Are there any safety issues?
•6. Does the property have construction deficiencies such as broken windows, walls, plumbing, tile, flooring damage?
•7. Are there unpermitted additions?
•8. Are the utilities on and functioning?
Are you aware that these issues should be addressed?.... Call us and let's discuss it before you waste money for financing which cannot be obtained.
Jason Kardos, Broker
(619) 447-1196
Options: A "No Down Payment" Tool
by Bernard Hale Zick
One of my students recently told me how he was applying what he learned.
This approach gives you 100% financing... the money comes from a hard
moneylender! Sound interesting? What you are doing is making it easy for
the lender to make up their own mind as to whether or not they want to play
the game. Here's how it worked.
An investor liked fixing up properties. He found the type of house he wanted
to buy in June of 1996. This house was for sale for $150,000. It had been
on the market for six months. The market was soft during this time. When
markets are soft, only the cleanest and "most ready for market" houses sell.
The house needed many cosmetic improvements as well as some minor structural modifications to be a top dollar house. The investor thought could easily be worth between $190,000 and $220,000 at the end of a years time, given various factors. These factors included a cash investment of about
$10-20,000 in materials, labor and supervision on the part of the investor.
Additionally, the San Diego market was beginning to come back in June of
1996. And lastly, the house was being purchased at a discount because of all
the things that needed to be done.
The investor in question wanted to structure the transaction in such a way
that he could borrow a 100% of the option price at the end of eighteen
months. The seller would consider an option if a.) His monthly payments
were made, b.) He could get a little more for waiting c.) And the
improvements would begin immediately. The seller had set the option price at
$158,000. Thus if the house was really worth only $150,000 it only needed
to only appreciate about 4% to be worth $158,000 at the end of a year and a
half. Hindsight on this example tells us that appreciation for this
particular market was around 12% between June of '96 and December of '97 so this fact worked well for the buyer.
And with luck, the buyer would like to be able to borrow the additional
$10,000 that he was putting into the property. At least this way he would
have all his cash back. If he could get any more for his time and effort,
so much the better.
Lenders have a habit at looking at refinance loan application with an eye to
whatever is lower cost, what you paid for the property, or current
appraisal. This same kind of outlook towards lending usually bubbles over
into all sorts of situations where the buyer has possession or use of the
property.
My student is a creative real estate broker. He helped this buyer and seller
structure the lease option in the following fashion. Lease payments were
$1200 a month. That's annual payment of $14,400. All the lease payments
were to be credited to purchase at the time of purchase. As additional
option consideration, buyer was required to do $20,000 worth of remodeling;
decorating and repairs, with $10,000 of that being his own labor. The
selling price was $192,000 rather than $158,000. This of course is the
$158,000 plus the $34,000 in additional option considerations. ($14,400 in
monthly payments and $20,000 in fix up.) Since $34,000 of the option
consideration would be paid at the time of closing, the balance due at the
time of closing was $158,000.
At time of exercise of option the real estate contract was drawn for
$192,000. It showed $34,000 being paid to the seller as option
consideration, which the seller acknowledged being received. A loan was
requested in the amount of $160,000 which is approximately 80% loan the
value. The second loan source is also being considered which would give a
90% loan the value loan. If the buyer takes the second, he will also have
his fix up cash back. No matter which loan the buyer takes, the buyer will
have "financed out" the majority of the purchase price. With a 90% loan to
value ratio loan they will have no cash in the house whatsoever.
What about the lender? Was this all done with mirrors? Absolutely not. A
copy of the option agreement was attached with the purchase contract to the
loan application. Both lending sources are fully informed and are totally
willing to make the loan as described above.
Now I'm not saying every lender would give you this much leeway. I also
know western lenders tend to be a lot more lenient then they are in other
parts of the country. Furthermore, some parts of southern California are in
an up market again and lenders tend to be more generous in up markets. It
isn't just that they think values are going to continue to increase for
awhile, in an up market there is constant refinancing of old loans
constantly giving Savings & Loans an abundant amount of cash to put out
again. Thus they are anxious to make loans.
Furthermore, an appraisal of the house now all dolled up with the latest
decor, showed an appraised value of $191,500. Who could ask for anything
more? The ability of the property to appraise for the eventual for the
contract price was a key element here. Because the property appraised so
high, the remainder of the financial aspects of the transaction are a lot
easier for the lending institution to go along with.
Lease options have always been an excellent way of controlling property
where there is future appreciation potential.
Had the lease option been written for $158,000, then the lender most likely
would not have made the loan. Why? The general rule you are fighting is that
lenders loan either contact price or appraised value, which ever is less.
Yes, there was a contrived way of putting together the price, but by the
book, the contract price was $192,000, thus fitting the lenders mold.
This control can often be obtained with far fewer dollars than what would be
necessary in an outright purchase. Furthermore, in this example where major
fix up repair decorating outlays are planned and these outlays are
anticipated to greatly enhance the value of the property, the lease option
is a perfect tool. Combined with this the manner in which the purchase
price was computed and you have additional advantage with a lease option of
being able to recoup most all if not all of your acquisition cost at the
time of exercise of option.
The broker had to wait to get his commission, which was paid by the buyer.
Lastly, a seller, who was worried about not being able to hold on to his
house, got relief, and got a price he agreed to in cash.
The Washington Post
Right steps to take before disputing a credit error
Credit scores and reports continue to be one of the most important factors in determining whether
consumers are extended lines of credit, and the amount they are offered. Credit reports provide lenders
with a consumer's credit history, including missed or late payments. Consumers concerned about errors in
their credit reports should contact the three major credit bureaus to dispute the inaccuracies.
KEEP THIS IN MIND
• Not all lenders report to the three major credit bureaus - Equifax, Experian and TransUnion -
which means a mistake could appear on one, two, or all three reports. Rather than calling or
mailing a dispute letter to one central agency, the errors must be disputed separately with each
bureau.
• Consumers may obtain free copies of their credit reports once a year at
www.annualcreditreport.com. This report will only show credit history, and not credit scores. To
obtain a credit score, consumers can visit www.myfico.com.
• To dispute an error, consumers first should contact the lender that reported the information to the
credit bureaus. Next, contact the credit bureaus using the numbers listed on the credit reports.
This also can be done online at www.transunion.com, www.equifax.com, or www.experian.com. If
the report is more than 60 days old, consumers should obtain a new report, which may have a new
phone number. Also, if the report was obtained from a third-party site rather than directly from the
credit bureau, consumers may have to order a report from the bureau to begin the dispute process.
• Bureaus typically have 30 to 45 days to "resolve" disputes. If it's a simple factual error that is
acknowledged by the lender, it could take as little as two weeks. Either way, consumers are
notified of the bureau's decision via regular mail or e-mail.
To read the full story, please click here:
http://www.washingtonpost.com/wpdyn/
content/article/2009/05/16/AR2009051600021.html?wprss=rss_business/personalfinance
Jason Kardos is a San Diego native who was born in La Mesa, CA. & is an active investor/agent who buys and sells, including auctions & 1031 tax-deferred exchanges. GRI, RMS, CCRM, and Realtor.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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