Realtor Event: Southland Association of Realtors Expo

We recently attended the annual Realtor Expo put on by the Southland Association of Realtors and as our inaugural event, we ended up meeting great people and had a blast!

This was our first public event. Many agents asked us what we did as a real estate technology company and the simple answer I gave was; “we help agents close more transactions”. Obviously this prompted more questions and as I spoke to agents about the nuts and bolts of our business model, their intrigue became greater. It was great way to introduce mypropertychannel to so many people that already embrace the technology side of real estate. 

Having been part of this event, it made us realize there was more we can do to improve the way real estate agents create exposure and generate deals.

As a result, we will be participating in more events and be inviting agents to our future events. We are looking forward to meeting many more people and helping them becoming successful. If you can't wait for our events, you can always contact us at: marketing@mypropertychannel.com

The Truth About Cash Buyers

We have been getting a lot of feedback from real estate agents on the difficulty of securing buyers for purchase transactions. So we decided to address this topic. Since there are more Buyers today than there are Sellers, the challenge of having an accepted offer can be rather difficult. This is not the norm on a national level but in Southern California, particularly Los Angeles, Orange and San Francisco Counties there have been an increase in double-digit offers for certain property types.

Having multiple-offers in a competitive market is not uncommon, in fact, it is almost a norm. When rates have been at an all-time low and home values have been hit due to our economic collapse, what you have is a perfect storm. This storm brings out investors, first-time home buyers and transitional buyers that are taking advantage of the market. There has been a great deal of cash buyers (mostly investors) that have been presenting offers on numerous homes. An all-cash offer does not mean you are presented with the best offer. This just means the buyer does not need remove the financing contingency in the purchase contract. There is still a due-diligence, inspection and discovery period that the buyer needs to perform. Typically, a full-cash offer is structured for a 15 Day escrow.

As an active lending professional, we face these challenges daily. However, we have competed against numerous cash-offers and have closed many transactions as a result. Not all cash-buyers will be loyal. Chances are they are making offers on other properties as they understand the competitive nature of the market. Also, lenders understand the value of the customer experience. There are plenty of lenders that can offer great rates and service. Some can even close loans in as little as 15 days. This competes against many full-cash offers. It’s important to remember as a consumer that there are properties out there and professionals who are willing to make it easier to get your offer accepted.

The Challenge Of Being A Successful Real Estate Professional

In one word: Reputation. Our industry is changing and evolving so quickly, that people often forget that this is still a business that involves human interaction. It’s great we can access inventory, statistics and information through the wonders of technology. However, our business is based on credibility. Listings, referrals, web-presence and signage can promote credibility based on market presence. Every successful professional whether you are a real estate agent, broker, loan officer, title rep or escrow officer will tell you they are successful because of one thing: They always prospect for new business. That means we have to be consistent in our marketing and branding.

Since technology offers different ways to promote you, we often forget this is just a tool and not a means to close a deal. You still have to go out there and promote yourself. After all, 99% of clients do business with you based on two factors:

     1. They like you.

     2.  They trust you.

As a real estate professional, I have built up my business by being consistent. I rarely turn away clients, even when I know I am already at capacity. This just makes me work harder. Because of this, I have been fortunate enough to have business year round. However, building your name and reputation takes time just with anything. Being consistent gets you there but execution is what stands you a part from your competition. This is what creates your brand. Every day we face competition, losing a listing, gaining a buyer and so forth. Real estate is not for everyone and not everyone can make a good living at it. We face tremendous amounts of strain and sometimes the payoff might not be worth it. But it is the mindset to continue with this process and be better that leads us to becoming successful in our profession.

Southern California Real Estate Is Going To Be Hot!

It’s an early start to the fire season. The fires that started a couple of days ago near Camarillo, California remind us that we need to be prepared for the upcoming hot months. With the dry weather and lack of rainfall this year we are definitely prone to more fires.

Every year, I get a postcard from the LA County Fire Department reminding me of the annual brush clearance deadline. This means any vegetation, brush, tree or shrubbery that is not properly kept will need to be trimmed. The physical residence needs to be clear of anything that may be considered a “contributing factor”. The point is, as residents, we need to “fire-proof” our homes as best we can.

When it gets to this time, here are some tips I follow:

1. Cut and remove all vegetation (grass included) to the ground.
2. “Lollipop” all trees, bushes and shrubs.
3.  Clear rain gutters of debris.
4.  Clear perimeter of any dead vegetation.
5.  Buy first aid kit (I do this every year).
6. Create a “survival” package.

This is a nutshell version of what I do to prepare for the fire season. As a worse-case scenario precaution, the first aid and survival kits are included in case I were to separate indefinitely from my home. Let’s hope that the Southern California housing market stays hot on a figurative basis and not on a literal one. 

The Marriage between Real Estate and Technology

It’s hard to imagine a world without the convenience of technology. Where would we be without our ipads, cell phones, and laptops? Google announced their Glass concept which will change the way we capture and organize data. Apple’s “watch” not only adds convenience but applications limited only to our imagination.

Do you remember the newspaper? How about some local magazine or that special edition publication you waited every other month for? Let’s not knock the publishers of print-media after all they are the first physical version of the internet. Nowadays, the major player in delivering information is done through the technological advances in digital communication. Specifically, the technology applications field will continue by leaps and bounds to integrate everyday practical things we do in a seamless way.

As I was growing up, I remember the computer being somewhat of a big deal. We were the generation transitioning into the evolution of computing. Today, children often have an ipad in their hands as quickly as they are able to pick them up. I did not embrace this new evolution nor did I turn my back. In the last two weeks, I have attended a few technology events. These events led me to believe we haven’t even tapped into what our future will look like. The world’s information will be delivered quickly and efficiently to anyone on any platform. I’m not a creative person but this was my takeaway as I left these events.

Being in the real estate industry, I envision our business to drastically change even further from what it is today. Although buying a home still appeals to our senses, the traditional methods of searching will no longer apply. For instance, looking for an “Open House” through the Sunday newspaper may not get you very far especially since most home Buyers use online searching as their primary choice. Online buyers are quick enough to take a look that day to schedule something that afternoon with the possibility of making an offer if they like the property. The applications to bring up-to-date information accurately and efficiently will be intertwined with our industry as our consumers demand the data to fit their criteria. There will be innovative products out there to deliver the information that will be part of our daily lives. Who thought we would be so “naked” without our cell phones? Just as Amazon has conveniently brought to us the world’s store, it would not surprise me if the ease of purchasing real estate was conveniently done with the click of a checkout button.

Purchasing A Home Will Be One Of This Decades Best Investments

Buying a home today can be one of the most significant investment decisions you will ever make. It will not be the same experience if you had purchased a home 10 years ago. The primary reason is home prices and mortgage rates are the lowest they will ever be. It has been over 50 years since interest rates have been this low (source: Federal Reserve on the 30-year Bond). To put this into perspective; the world’s population in 1960 was a little over 3 billion (7 billion now). Neil Armstrong would set foot on the moon about a decade later. There have been numerous wars including Vietnam, Korea and conflicts in the Middle East. You get the point.

Since 2008, the price of homes fueled by numerous foreclosures and short-sales has spiraled downward. I believe we are in the recovery process but we have just turned this corner. In essence, we are still at the bottom of the market with some ways to go. Inflation, without a doubt, is coming. Prices are still low in certain markets however you will see a quicker increase in value in others. I would not consider this to be normal so you would need to perform some due-diligence.

With rates at an-all-time-low and home prices still at very affordable levels, you have a recipe for a very positive and favorable investment. Mortgage payments would rival and in some cases surpass those of higher rental payments. These are all positive benefits for the future homeowner. When you include inflation, you not only build equity but you also increase your net worth.

With all that is happening in the world, the crisis in Europe, the price of Gold dropping and the overall bearish position of our stock market, I would say purchasing a home has never been more appealing.

FHA Loan vs. Conventional Loan

When it comes time to choose a loan, many people can be overwhelmed from the different types of loans that are available. It doesn’t help that there are plenty of lenders, banks, brokers and other financial institutions to choose from. It always seems that whomever you speak to may give differing views on lending information and practices. The experience of finding the right loan can be somewhat confusing, overwhelming and stressful. Let’s look at the types of loans that are available:

A Conventional Loan is a salable loan that is not affiliated with a government agency. These loans are guaranteed by Fannie Mae or Freddie Mac and are underwritten by their guidelines to ensure sound practices of issuing credit based on income, assets and collateral. These guidelines are widely accepted by lenders, financial institutions and banks which allows these entities to sell mortgage loans to Fannie Mae or Freddie Mac directly. Guidelines may differ based on credit score, loan amount, down payment, etc.

A FHA Loan is a government-issued loan. This loan is backed and fully insured by the US Department of Housing and Urban Development. One primary difference between a Conventional Loan and a FHA loan is with an FHA loan, you can bring a minimum of 3.5% down payment when making a home purchase. Another difference is the source of the down payment can be gifted by family, friends or employer. There are also some guideline differences but that would depend on your particular credit and income profile.

This is a broad and general overview of the two major types of loans that are available. Factors such as location of the property, type, credit score and loan amount will determine eligibility of the loan qualification. This should serve as a basic understanding on the key differences of available loan products. 

Tips on Getting Your Purchase Offer Accepted

California’s housing market appears to be heading in the direction of a Seller’s market. With inventory in certain price ranges at an all-time low, Sellers are seeing multiple-offers once again. Listings in the price range of $600,000 and below seem to sell quickly. The chance of these properties going into escrow within 30 days is highly likely so one has to be prepared.

The level of difficulty to get an offer accepted on a home purchase has increased. To this point, we’d like to make some suggestions on how you can increase the chances of getting your offer accepted. As a reminder, if you like a house enough to make an offer, assume there are 15 other people who feel the same. Some of which will be presenting all cash offers. This doesn’t mean that you are automatically going to be rejected but it does mean your offer will need to stand out. In the many years I have been involved with real estate and finance, here are some ways I have found Buyers to be successful in a bidding war:
     1. Find a Buyer’s agent that knows the area very well. Chances are the agent will most likely know the Listing agent.
     2. Personalize your offer by creating a profile on yourself and your family. This lets the Seller know what they would be selling to and that you actually went the extra mile to let them know you are truly interested in the property.
     3. Be prepared to spend days, nights and weekends to find your property. Properly priced new listings won’t last too long so the sooner you see it, the sooner your offer gets seen.
     4. Prepare a game plan between yourself and your spouse to view homes and write offers. Chances are your schedules won’t be exact so it’s important to detail what you like, how you will tour homes, and how you will present offers.
     5. Get loan approval for your home price range.

For a list of lenders and real estate agents, please contact us at marketing@mypropertychannel.com

Renters Boon

The housing industry is definitely in the recovery process. Where it will lead is anyone’s guess however, if history suggests anything, we will have a boon. Now it does not take a rocket scientist to figure out our economy is based on a cycle. We happen to be at the bottom of one and all things indicate that we are trending positively from a recession to growth. Depending on who you ask and what you read, not all experts agree on the timing of the growth stage. This brings us to our topic of discussion.

Renters make up approximately 40% of new home buyers. This includes previous homeowners and first-time home buyers. This is an important statistics because renters today are equipped with resources to make a well-informed decision on what to purchase. The internet provides an enormous tool to research properties and real estate agents, which allows significant amount of due diligence to be performed prior to a home viewing. The reality is renters have a certain expectation on what they are looking for. Many renters I know are handy and enjoy do-it-yourself projects. Keep in mind, that many renters were once previous home owners so they understand periodic maintenance and improvement. They have made it clear that minor cosmetic to major construction work is something they will not shy away from and some even prefer it. Who wouldn’t want an under-valued asset?

With rental rates at a high and vacancies at a low, renters can choose to make a purchase that will only benefit them for many years to come. Include the lowest rates in history and low prices; you have a recipe for many renters that can pave the way to economic growth.

300 South Snyder Place West Covina, CA For Sale

New Listing in West Covina, CA – Los Angeles County

Great home beautifully constructed in a peaceful neighborhood just minutes from South Hills Country Club. Walk up to a huge wrought-iron double-door entry. Enter into a lovely foyer with a spiral staircase, to the left you have a formal living room with a marble fireplace connected to a private library with coffered ceilings and wood paneled walls. The formal dining room is adjacent to a large media room complete with a build-in bar, perfect for entertaining. The kitchen includes all stainless steel appliances, built-ins include: side-by-side refrigerator, double ovens, coffee station and microwave. It features a center island with counter-tops, cook-top and breakfast bar. All 5 bedrooms are upstairs including the laundry room. The master bedroom includes an on-suite bathroom with a double-sink vanity area, step up Jacuzzi tub and separate shower.

For complete details and agent information: http://www.mypropertychannel.com/West-Covina-CA-Homes-For-Sale/300-South-Snyder-Place-MLS-97866436208

FHA Changes Mortgage Insurance Premium (MIP) Policies

The US Department of Housing and Urban Development (FHA) has decided to change its policies as it relates to the length and amount of Mortgage Insurance a borrower must pay for holding a mortgage. This new policy is effective April 1, 2013 for Mortgage Insurance Premium increases and June 3, 2013 for length of the Mortgage Insurance one has to pay.

Now there are benefits of an FHA loan: Minimal down payment of 3.5% (Which can be gifted), underwriting guidelines that are not too strict, and lower fico scores to qualify (This can depend on the lender). However, the idea of paying for mortgage insurance for a minimum of 11 years may deter many ready and willing first-time home buyers. The 11 years is a minimum as long as you have 10% as a down payment. For anything less, you will be paying the mortgage insurance until the end of the mortgage term.

Many first-time buyers are going to make the decision of holding off until they can save a higher down payment or take advantage of low real estate values and eventually refinance (if it makes sense) to justify a lower payment. We are in the early stages of an economic recovery and housing has certainly been a topic of discussion in leading the recovery but introducing a more expensive way to procure a loan does not help with one of the country’s biggest markets. For details on the FHA loan changes: http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

Cash Is King.....For Now

As I visited numerous open houses over the weekend, I continue to hear a common recurring theme. There are plenty of cash Buyers! I always tell people, everyone is a Buyer and Seller….it just depends on price and service.

A great deal of properties being purchased are done so by investors. They are taking advantage of low prices coupled with low interest rates that this country has ever seen. Period! Why would you not want to be an investor or a first time home buyer? Do you doubt that inflation is coming? What this has done for the time being is create an opportunity for those that want to seize it. It seems like many investors understand where we are in the economic cycle to have them create a buying frenzy. Now I’m only speaking in generalities, much of the country elsewhere is not necessarily experiencing what we have been in Southern California. This leads us to the Buyers themselves. Traditionally, the more experienced will have cash and as you know, cash has been king. Representing a cash buyer eliminates financing contingencies resulting in a quicker close for all parties. This does not mean that other buyers that need financing are less qualified, although traditional financing does lengthen the process. Traditional financing requires time, appraisals, and underwriting before a loan can be issued. There have been more foreign investors that attract listing agents because foreign nationals circumvent the financing. Countries such as China, Taiwan, Europe and the Middle-East all have been pouring their money into the real estate market as a safe bet. Most banks and lenders require a social security number, credit and employment which foreign nationals may not have making it easier to go with an all cash buyer.

According to David Kim of Carrington Mortgage, “Most cash offers have a 15-day escrow period. We pledge a 25-day loan closing so we are competitive when it comes to quick closings.”

Although cash seems to be the proverbial king, lenders are now making stride to keep pace with shorter closings geared toward the majority of Buyers.

David Kim can be reached at (626) 252-5709 or david.kim@carringtonms.com

California Foreclosures/REO’s Decline By 60%

Last month’s foreclosure and REO filings dropped drastically from the previous month’s numbers. One reason has to do with new legislation going into effect that makes certain bank foreclosure procedures more prohibitive. These news laws that became effective in January have provided homeowners greater protection when dealing with banks in the default process.  There was an estimated 60% decrease in default notices from the prior month.

This is interesting because this data comes after the 2012 holiday season. The overall unemployment is lower than where we were approximately 12 months ago. Typically, the holiday season provides temporary jobs and as the New Year approaches, the majority of the seasonal positions are no longer needed. But the overall trend is positive as California shows signs of less defaults than it has in the previous few years.

Carrington Mortgage Services Offers 25-Day Loan Closings

Carrington Mortgage Services announces 25-Day closings today. In today’s market, the average time for a purchase loan transaction is about 45 days. When direct lenders are able to deliver customer-centric services, everyone benefits. The lending industry will take notice of these service times to compete. Everyone’s game will be elevated or you will see more dissatisfied consumers and potential loss of revenue. Carrington has increased its operational efficiency to commit to 25-day closings.

Click here for the full article: http://finance.yahoo.com/news/carrington-mortgage-services-announces-25-140000176.html

Housing Continues To Fuel US Economy

There are a number of housing factors that are contributing to the boost in our economy. Many cities are now showing an increase in housing prices. Although inventory is not as robust, many Realtors and agents are experiencing multiple offers on their listings. This would indicate a shortage of properties and a surplus of Buyers.

With all that said, you will see more and more real estate companies hiring for agents. Lenders will increase their staffing for loan originators to funders. Contractors and developers will hire additional workers. Most businesses that rely on the real estate cycle will also see an increase in production. This includes lumber yards, transportation, business services, etc.

I have personally seen more and more new construction in areas where building has generally been non-existent. With declines in delinquencies, defaults and foreclosures this can only mean that the housing industry and related industries will experience a boost in business.

Fred Gil and North American Title have joined myPropertyChannel

We are pleased to announce that Fred Gil and North American Title have joined our real estate network. North American Title is one of the largest real estate settlement service providers with more than 1000 associates across the country.

“I started my title career with First American Title in 1989. As an underwriter, it gave me first-hand knowledge on how to solve ANY problem that might arise during a real estate transaction.  In 1992, I was recruited by Fidelity National Title and transitioned into the sales department, quickly becoming the #1 resale company for Orange County and never looking back.  My experience in closing resale and refinance transactions and expertise in marketing, technology, and the internet make me a valuable asset to any real estate professional” – Fred Gil

For real estate settlement services information, please contact Fred Gil at (714) 290-4111 or email Fred4Title@gmail.com

Demand In Rental Units

If you look back to 2008 and the collapse of the market, there is no question the demand for rentals would increase. As the “meltdown” continued on its path, you had to ask yourself, how many people were looking not only to downsize but to rent. Perhaps with a roommate or family member but in either case the need to afford housing with less of a financial burden was definitely needed.

According to housingwire.com, it is estimated that 4.2 million new renters will attribute to the 6.6 million units needed by 2016. There is more new construction activity to support this claim and inventory is moving. Multiple offers in certain areas of Los Angeles, CA are now appearing to be expected. However, certain hot-spots aside, that is not the case. Our absorption rate is still slow compared to the overall occupancy of our available housing units.

The full housingwire.com article can be viewed at http://www.housingwire.com/news/2013/01/25/rental-demand-grow-66-million-through-2016

The Road To Success In 2013

Let’s face it, 2012 was not a special year but it did signal what the next few years will look like. In general, most real estate professionals closed enough transactions to be in business. There are exceptions of course, but for the masses, doing over 300 transactions this past year were limited to only a handful of real estate professionals. The likelihood of enormous success in 2013 is unlikely but all signs point to the direction that we are in the recovery stages. What does this mean for you? With inflation on the horizon and interest rates to slowly increase, you will see activity well before you see a lull.

The opportunities as a Buyer are huge. Prices are still depressed and in several states, delinquencies and foreclosure rates have increased. With such activity, the housing market will create revenue that will reach across other industries. More jobs will be created adding much needed fuel to kick-start our economy and the road to prosperity.

If you are interested in contributing or writing, please email us at marketing@mypropertychannel.com

Thank you

David Kim and Carrington Mortgage Services, LLC have joined myPropertyChannel.com

We are pleased to announce David Kim, Branch Manager of Carrington Mortgage Services, LLC has joined our network of real estate professionals. Carrington Mortgage is a direct lender servicing approximately 16 Billion in mortgages. With great mortgage products and exceptional service, Carrington continues to lead the way in the mortgage industry. David has been lending for 15 years and continues to service the Greater Los Angles/Pasadena areas. 

In addition, we are looking for Real Estate Brokers/Agents to refer our business in the following areas: Los Angeles County, Orange County, San Diego County, Ventura County, San Bernardino County and Riverside County. Please contact us at marketing@mypropertychannel.com if you are interested.