The "818" on Real Estate

I wanted to remind everyone that the federal tax credit of $8,000 will be up December 1st 2009. This tax credit is awarded for your 2009 tax return and is only for first time buyers. A first time buyer is an individual who hasn’t owned in the last three years. There have been rumors of the credit is being extended and also that it could be used as your down payment. There is also a $10,000 tax credit for Californians who purchase new construction. $24 million in tax credit certificates have already been awarded and these funds are limited. I will update you with the progress. Until then, please never hesitate to inquire about: selling or buying a home this year. I am always available either by cell phone or email.

How much return is your equity bringing? Investors and homeowners could both benefit from putting their equity to use. CALL ME FOR #4 (market value – what’s owed) 1) Annual Gross Income (Monthly rent x 12) = $ 2) Annual expenses (Annual mortgage payments, taxes, insurance, maintenance and any other expense) = $ 3) Annual NET income (subtract 2 from 1) = $ 4) Estimated NET Equity = $ 5) Cash on Equity Return ( #3 divided by #4) = % Two Solutions for better cash flow: 1) Refinance to acquire additional investment properties for better ROI and ROE 2) Sell and acquire superior properties via a 1031 Tax Deferred Exchange. Jesse James 818-326-0945

Current local sales trends at: http://www.srar.com/node/244 Summer has reached its end and the holidays are quickly approaching. This is usually a slow time for real estate, but with all the favorable conditions it may remain steady through the season. The $8,000 tax credit is still around for those of you who close escrow before November 1st 2009. Take advantage of these low prices, excellent interest rates and generous federal tax credit. Qualifying for a loan is easier than you think. ..

So, you are pre-approved for a home loan and are ready to start looking for your slice of America . Well, be prepared but not discouraged. Remember that any home you purchase today is over 50% off in most areas. So what’s the problem you say? There isn’t a problem with prices or financing. The problem is the competition that buyers face, MORE buyers. In order to combat this you must be stronger and more determined than the next. The major component for being stronger is price….bottom line. You may not get a home for 50% off but 30% still isn’t bad! You are buying your home, not stocks. Offer well above the list price and your chances increase exponentially. Being determined must come from the inside while never sacrificing your character. Do you remember the story of Tortoise and Hare? Be the tortoise that persevered. Don’t let impatience or greed propel you into a home that will be yours forever. Easy does it. There is no secret….

This link will determine if you qualify for Obama's new Making Home Affordable plan: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html This link is for a HUD approved organization to assist with the process: http://www.lanhs.org/index.php?section=calendar&subsection=view_event&event_id=16

The good news; homes are becoming more and more affordable. The bad news; everyone is fighting over them. Keep in mind that you may have to make several offers before getting one accepted and also be willing to offer more than the list price within reason. By offering more than the list price, a large down payment and good FICO scores, you will increase the chances of having your offer accepted. This is pretty simple but can be very frustrating because of the competition. Remember to be flexible with your time when viewing homes and proactive in checking homes online. Yes, your Realtor will be searching as well but no one should be hungrier than you. The sooner you see a great one, the sooner you can get your offer in. Be patient and tenacious and your home will come! The hunt is on.

If you wanted to buy a home in the last few years but didn't, now may be your opportunity. Home prices have dropped over 35% in many areas. The price of a home today is like buying in the year 2003. Not only are prices down but the competition of other buyers as well. At the beginning of this decade people could buy homes with NO money down. The interest rates were low and there were very creative ways to finance a home. Mortgage companies were willing to take this risk because prices were on the rise. The price of a home in some cases would go up in a months time or less! For 2009 the Federal Housing Administration(FHA) has set their loan limit to $625,950. You can now purchase a home with a 3.5% down payment. This down payment can even be a gift and the seller can pay for your closing costs!! In a way; this is a NO money down loan once again. By not buying a home last year you have already made money. There is no telling when the market will turn, but the old saying goes "b