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!
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!
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?
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for our FREE Sacramento Real Estate Market report!
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
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!
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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