Max Boyko

Alot of times people wonder what they should do next. Buy or rent?

Of course renting helps you avoid many responsibilities, maintenance, and things like that. But I believe we are in a unique situation in history (for how much longer nobody knows), where owning your own home can be substantially more affordable than renting.

For example, I can describe a transaction we had closed on last week. Although it was a struggle to keep the deal together (lending issues still tend to be a problem at times), everyone pulled through and a VERY happy homeowner came out at the end of the story. It was a fully remodeled home, with crown moldings, 3 tone paint, and just about everything inside remodeled and upgraded. Buyers were a young couple with a 4 year old girl getting ready to go to school. Showing them many homes in an area they thought they wanted to be in, they were beginning to get frustrated that we just could not find something attractive in their price range.

Then I found out one of my investors was finishing up a project, and with that I knew we would not have to compete to get in the deal. I showed them the home 1 week before we were supposed to list it and we were in contract almost right away.

The moral of the story:

They were able to purchase this nearly new and fully remodeled home for 170,000. With a California grant program our lender had access to they came in with 1% down payment ($1700) and their payment was less than $1150. If the house was on the market for rent, it's rent would be around $1400.

They are saving $250 per month than if they were renting, came in with a down payment of less than most landlords would require as a deposit, and enjoy the tax benefits and personal satisfaction of home ownership!

Glad we could help.

Our team has some of the most diverse and strongest delivery mechanisms in place for assisting our buyers. We often have access to properties that would be considered “off-market” as well as properties on the market due to our relationships with other power players in this region as well as numerous investors that we work with daily. This concept allows us to manage and deliver very powerful opportunities to our buyers as well as accelerate the locating the properties and buying process.

We measure success one transaction at a time by transferring the benefits to you, the buyer. We understand what it takes to create a win/win solution for all parties involved. Perhaps we will represent you in the buying process, we are confident that you will be on the fast track to obtaining what you are looking for.

Home ownership is a great privilege, and every American deserves to own their dream home.

Home ownership is also a great tool to create long term wealth and leverage your tax obligations.

· We have the most up to date local market knowledge.

· Make ourselves always available and always reachable to you, the client.

· You will get the best deals on the market with our negotiation knowledge and expertise.

· We sell many of our own listings which are first presented to our clients before everyone else has access.

· We have access to bank and auction homes prior to going on the market.

Our team has specialists for both first-time buyers and investors, so we can create a long-term relationship that offers many benefits. Something also to review and consider is why the Sacramento Region is a fabulous reason to purchase in this area. We believe this area is the absolute best location on the west coast if not the entire country to invest and purchase a home in at this time. It’s the reason why we have positioned ourselves in this ever growing top 10 city of the United States of America.

Five Fabulous Things to Consider When Buying a Home

The Sacramento region is a fantastic area in California that has its many advantages. The advantages are the reason why people have invested in the area and continue to do so. Since this is the case, you will need to have a list of the reasons in order to understand why it is considered to be such a good investment and decision.

The first reason that comes to our mind is security. Sacramento is an area that has a low crime rate. As this is the case, it implies that the level of security in the area is high.

Secondly, the value of the home is an important factor to consider. The current values are low but they are expected to appreciate at a rapid rate. This means that if you have a home in Sacramento, you are going to have excellent equity in a short while. We have experienced 20% population growth in the previous decade and this is expected to continue.

The infrastructure of Sacramento is also one of the reasons why it is a good investment. The condition of buildings and roads are at a high level of quality in this entire area. If you are self employed, owning a home in the area can be good for your ventures. You are guaranteed of having the opportunity to expand your business or enterprise.

Another factor contributing to the buying of homes in Sacramento is the type of facilities. Though the area does not have the state of the art facilities, it has sufficient facilities for comfortable living. This will mean that a person will not have to go to other cities to look for certain services, supplies and other items needed for comfortable living. The metropolitan area of Sacramento has a tremendous amount of resources, stores, specialty shops, restaurants, live events such as concerts, incredible universities and just about everything else needed for living a rich life.

Finally, the social environment of the people should be a reason why you buy a home in Sacramento. The social environment is friendly and open. There is a very diverse array of excellent restaurants in this area. The more explore this you will discover fabulous live events and good eats in this area. The people in the area have good morals and value the important things in life. This can be a great place for children to be born and raised in. With these factors in mind, investing in Sacramento has wonderful benefits to consider. Being centrally located between San Francisco (Bay Area) and Lake Tahoe has been another reason why so many choose to live, work and play in this wonderful area.

Team Hybrid Real Estate Services are Sacramento Real Estate leaders. We are specialty Realtors Proudly serving Sacramento, Yolo, EL Dorado, Placer County and beyond. Specialists in helping you find the ideal home or investment property for sale in the Sacramento and the surrounding area. We are Short-Sale experts and have helped many Sacramento Area residents navigate the complex process to successfully buy or sell a house with a Short Sale as well.

Once you have obtained the perfect property for your investment needs, it is usually important to get it vacant. Depending on how you purchase your property will determine whether or not it will have tenants (or homeowners) currently living in it. A great benefit of buying a home on the market as either a foreclosure or shortsale is that it will typically be vacant upon closing. Since these have quite a bit of competition from other investors, however, let's assume that you are buying at some form of auction.

If you have a property that is occupied, there are several things you will need to determine before deciding which steps to take. Since it takes 2-3 weeks to receive the grant deed from the Trustee, you cannot begin a court eviction process because that is required for filing. The first steps to usually do is determine whether the occupant was a previous owner of the home or a renter/tenant. The laws are quite different for both, and depending on which they are is how it is best to carry the initial conversation. Most people that are foreclosed on do not expect someone to check on them right away, and will usually not yet be in a state of worry (although there are always exceptions). Since most of these people have lived mortgage free for 10-20 months they are often ready to relocate and will cooperate. I always recommend adding a bonus for leaving things clean and relocating in a timely manner. It is one thing for them to have a foreclosure on their record, but a foreclosure AND eviction is something people will want to avoid if they can.

There are certain scenarios, however, where being nice and offering help to the owners/tenants does not work. They may be mad or upset at the system, at the banks, at themselves (since they usually got themselves into it in the first place), and are not in a state of mind of cooperating with anything you may offer. In this case an eviction process is necessary. The services we usually use for this range from about $600 (for an independant eviction service provider) up to $1500 for a great attorney. The process they will go through is typically the same and usually better to save a little money whenever you can. It will take 2-3 weeks to set a court date, and the judge will give 7-10 days for the person to move out (with a sherrif's eviction). Throughout this process it is very important to do everything quickly as in the fix 'n flip world every day matters.

Once the people are out of the property, you will face the next steps of the bidding and remodeling process. Join us for this next topic later this week!

Moving on with your weekly topic, we shall cover the first part of the Fix 'n Flip.

I forgot to mention, however, that prior to even purchasing the right property, you have to pinpoint your market area and determine your strike prices and profit margins. Typical investors today are happy with 12-25% profits per flip. As in any type of investing, the higher the profit you desire the more risk you will take on.

Here is the usual breakdown:

Newer, and often pricier homes have been seeing smaller returns. The upside to this, however, is that they require minimal remodeling (although I have seen some rather new tear-downs) and can sell pretty quickly. The downside is that average profits are between 10-18% per flip.

Older homes can sometimes score home runs. They can also, however, cause nightmares. Prior to purchasing you have to check the roof, foundations, tenants, fencing, and area in alot of detail. Some homes can be quite affordable but located in an area which you will have difficulty selling (although anything sells at the right price). The upside to older homes is that there are more of them, the purchase price is much lower, and with proper research the profits can be great (i've seen as high as 35% on some great deals!).

There are several purchasing locations. The one everyone is familiar with, of course, is the MLS. The good deals are usually the bank owned homes or short sales. Bank owned homes can close quickly but have alot of competition from other investors. You will have to work with a great real estate team to be able to locate them and contracted very quickly. Good thing with them, however, is the fact that you receive title insurance, clear of liens, and have inspection period to make sure the home is the right fit. You get the same benefits going the short sale route, but bank approvals can range as long as 6 months on these (enough time to do 1-2 deals).

Another route is purchasing property at the foreclosure auctions. There is incredible risk in doing this and investor MUST verify details and what team he is working with. You can come across special hidden liens, tax liens, utility liens, child support liens, and unexpected surprises such as roof/foundation repairs which are hard to quickly inspect. Many times properties purchased at the auction today are owner or tenant occupied and you will need to either do a cash-4-keys or eviction before you begin the rehab work.

We work all 3 acquisition routes and have seen success with each. Every investor, however, needs to determine his comfort level. It is a very stressful road and requires a strong heart. I will be glad to answer any additional questions you may have. E-mail me at max@teamhybridre.com.