The "818" on Real Estate

LET’S EXPLORE -- Buy my Granada Hills listing Town-House at $375,000 with 20% down payment - $75,000 Estimated Interest Rate: 4.99% Loan Amount: $300,000 Monthly Property Taxes: $391 Monthly Homeowners Insurance: $80 Monthly HOA: $485 TOTAL PAYMENT: $2,564.63 OR wait for the market to go down 10% and purchase at $337,500 Estimated Interest Rate: 6% Loan Amount: $270,000 Monthly Property Taxes: $352 Monthly Homeowners Insurance: $80 Monthly HOA: $485 TOTAL PAYMENT: $2,535.79 While you wait you're paying someone else's mortgage by renting and not receiving a tax benefit. On top of that the total cost for the higher interest rate is much more in the long run. .. you decide.

“Survey SAYS” XXX There are always fluctuations in all markets. Two basic indicators for price changes are SUPPLY & DEMAND. In October 2018 there were 1,628 (SUPPLY) “existing” homes for sale in the San Fernando Valley and 1,068 (DEMAND) sold. 1,628/1068 = 1.52 month’s supply. That USUALLY would mean that we are in a seller’s market and prices would continue to rise until the market balances out ….BUT since the “average home sales price” has increased over 35% since 2013, and the median household income has only increased about 20% since 2013 the affordability has lessened. Not to mention mortgage interest rates increasing. (Los Angeles County Median Household Income for 2013 $54,432. 2017 was $64,300) – U.S. Census Bureau Granted, it is the holiday season but I am personally having to adjust prices downward for the first time in years. STAY TUNED!   SEHOLD IN

What is equity in terms real estate?  The Investopedia definition is:  The difference between the current  fair market value  of the property and the amount the owner still owes on the  mortgage . It is the amount that the owner would receive after selling a property and paying off the mortgage. Also referred to as “ real property  value.” Equity can either increase or decrease in any given year.  Can you access this money before you sell? YES - You simply complete a "cash-out refinance". This means that you'll reset the clock on your mortgage (sometimes lowering the payment) loan and increase the balance. Some people like to pay down their mortgage as fast as possible and others like to put their EQUITY to work. Putting your equity to WORK simply means that you'd reinvest this money into another property. You might want a bigger or smaller home or you might want to purchase an investment property to rent out.   An examp...

#TuesdayTip In a Los Angeles County real estate transaction (sale) there are two very important things that will occur toward the end of the escrow period. 1) Funding - When money is wired into escrow/title company who will then dispurse funds appropriately. 2) Recording - When ownership is officially transferred from the seller to buyer at the Los Angeles County Registrar-Recorders/County Clerks Office. Once this is completed you'll get your keys by the day's end!! Funding will happen 1 day prior to Recording BUT if the seller or buyer is willing to physically be present at the Registrar-Recorders/County Clerks Office, then it can happen in 1 day. #tricksofthetrade #escrow #homebuyer #losangeles #knowyourstuff #YourbestshotinRealEstate

#TuesdayTip On facebook this morning reading all the memories from years back during this time of year, ..and my posts are pretty much the same. Homes are selling in days whether it's an "up" market or "down" market. What you can do as a home buyer: 1) Get 100% pre-qualified for a loan (unless your cash of course). 2) Have your home in escrow prior to searching for your new home so that you appear much more prepared and competitive. 3) Align yourself with an agent who knows exactly what you're looking for, and available to run out in a moments notice to show you homes. #YourbestshotinRealEstate #jessejamesLA #lifeisbetterwhenyoumove

The FICO score labyrinth can be confusing and is VERY important when it comes to purchasing a home with a mortgage. - Paying off revolving debt (auto loan) can actually drop your FICO score. It might allow for a higher purchase price but without the appropriate FICO, a higher price becomes irrelevant. - Paying off collections, repo's and charge off's can actually drop your FICO score by 60 points. - When rebuilding credit do NOT open a secured or unsecured credit card. Please call me and I can direct you to a true professional for all things pertaining to the credit bureaus. 818-326-0945 #ficoscores #mortgage #YourbestshotinRealEstate #jessejamesLA

The FICO score labyrinth can be confusing and is VERY important when it comes to purchasing a home with a mortgage. - Paying off revolving debt (auto loan) can actually drop your FICO score. It might allow for a higher purchase price but without the appropriate FICO, a higher price becomes irrelevant. - Paying off collections, repo's and charge off's can actually drop your FICO score by 60 points. - When rebuilding credit do NOT open a secured or unsecured credit card. Please call me and I can direct you to a true professional for all things pertaining to the credit bureaus. 818-326-0945 #ficoscores #mortgage #YourbestshotinRealEstate #jessejamesLA

#TuesdayTip What is Probate Court? When a homeowner dies intestate (without a will) and the court has to oversee the sale. What sort of "additional costs" are there when a home is sold through Probate Court? There can be legal fees upwards of 4% of the value of the estate. Keep in mind this is in addition to the standard broker fees and closing costs. 4% of $605,000 (2016 average sales price in SFV) = $24,000!! How do I avoid this for myself or my parents? Give me a call and I'll direct you to thw appropriate professionals 818-326-0945  #babyboomers #Trusts #YourbestshotinRealEstate

Will solar panels add value to my home? It's an important question a homeowner OR "soon to be" homeowner should be asking themselves. As a homeowner you can purchase OR lease the solar panel system. If the cost of the panels are paid off, then an appraiser can try to find a home that sold substantially higher and give some($5k) added value. This of course is subjective to each appraiser. In most cases there is a monthly payment that a buyer of a home typically assumes. A lease payments is almost always seen as personal property with NO added value. As a qualified buyer shopping for a home, you'll really need to weigh the numbers. There is a monthly energy savings but ALSO an added monthly solar panel payment. Make sure to request the last 6 months of the homeowners energy bills. I hope your real estate agent got an A+ in arithmetic. I recently got a $5,000 credit for a buyer client! Call me anytime for assistance: 818-326-0945.

# TuesdayTip A few Los Angeles Tax Assessor forms that can help save you big money!! All information is on the website below but I'd be happy to discuss with you. Call me with any questions: 818-326-0945. -Disabled Veterans' Property Tax Exemption -Homeowners Exemption form: $7000 reduction in assessed value. -Prop 60/90: keep your current property tax basis when purchasing a new primary residence. # everypennycounts   # YourbestshotinRealEstate http://www.assessor.lacounty.gov/

A few small, "FREE", simple fixes that bring big returns when selling your home!! JUST MAKE SURE NOT TO SUGGEST THIS TO YOUR PARENTS.  # couponstoparents   # 5thgrade • Getting rid of unnecessary paper can help a room look tidier almost immediately. Old magazines, newspapers, expired coupons, wrapping paper and unused takeout menus can all be recycled without a second thought. • Go through your kitchen and bathroom cabinets and get rid of anything that’s expired, whether it’s food items, makeup or medicine. • Unused, damaged or duplicate items. Items you haven’t used or have too many of can be donated to new, loving homes or sold in a garage sale. # jessejamesLA   # homegrown   # YourbestshotinRealEstate

Real estate is measured by  ”month’s supply of homes”  to determine what sort of current market we’re in.  It’s a simple equation of homes available divided by the number of monthly sales. EXAMPLE:  We had 851 Single Family Homes for sale in the San Fernando Valley for the month of January - 2017. There were 377 closed sales.   851/377 = 2.26 MONTHS SUPPLY OF HOMES. What does that really mean? It means that it’s a seller’s market (good to be a seller). A balanced market is around a 6 month supply of homes. It is interesting, however, that more and more clients are mentioning the large supply of homes to choose from.  Is this the new norm in Southern California? The 2016 average home price in the San Fernando Valley was $605,843. Up from $558,825 in 2015.   Call me with any questions and allow me to navigate you through an amazing time in Real Estate! 818-326-0945.

I was talking to one of my clients about selling his investment property and the tax implications that come along with that. For his particular situation he'd end up paying about $50,000 after everything was said and done. And since he made around $200,000 in equity while owning it he's still ahead, right? Yes and no. There is a whole boring calculation that I could get into regarding what is taxable but I'll save that for your accountant. What IS important to know when owning a rental property is that you'll be taxed upwards of 37% in capital gains tax when selling. There are strategies to defer this tax burden, but at some point this money must be paid to our government. After a long conversation with my client I realized I was trying to consult/convince him on how to save the most amount of money possible. Although this is technically part of my job, I started to see that he wasn't too concerned with the tax. Turns out that he would would rather pocket what was...

Well, Recently I've run into a few people claiming they have been hunting for a home for over a year without being qualified for a loan! Remember that financing is one of the most important components of purchasing a home. The first step is to determine the strength of your FICO score. If your score is below a 640 (higher for conventional loans) you’ll need to take certain steps to raise it. This could take months in itself, so it is a good idea to have it run immediately by a mortgage broker.    The next step is to determine how much of a down payment you would like to put down, AND finally how much you are comfortable spending monthly. Once all these steps are complete we can HUNT with confidence!! I can help you with this process free of charge!  

There has been a TRILLION dollar increase (20%) in home equity in the last 9 months nationally. Home equity is the difference between the market value of your home versus the amount owed on it. This is just another great sign for all homeowners who need OR want to move up/down. You have just received a bonus for weathering the storm. Congratulations! http://www.latimes.com/business/realestate/la-fi-harney-20130106,0,6997483.story If you would like to see what your home is worth, give me a call: 818-326-0945

PURCHASE: $350,000 Loan $1670 Payment $365 Property Tax $100 Insurance Total Payment = $2135 Income $80,000 -$11,600 Deduction -$18,375 Mortgage interest & Tax Deduction -Taxable Income =$50,025 -State Tax 10% Federal Tax 15% Total Tax = $12,506 Total RENT payment= $1800 Rent Income $80,000 -$11,600 Deduction -Taxable Income $68,400 -State Tax 10% Federal Tax 25% Total Tax $23,940 Tax savings difference for the homeowner = $11,434 annual or $953 monthy RENTERS PAYMENT: $1800 HOMEOWNERS ACTUAL PAYMENT: $1182 CALCULATOR: https://www.progressivetitle.com/RentBuyCalculator.aspx *This is a only an estimate. Please consult your tax preparer for exact numbers

Yes, there are plenty of septic tanks throughout the San Fernando Valley . Unfortunately, they are a surprise to some buyers (and sellers). The upside is that you aren't responsible for a city sewer charge, and the downside is that you must occasionally service these tanks. Before purchasing (or selling) a home you may want to check out this city website*: http://navigatela.lacity.org/index.cfm After accepting the disclaimer: 1. Type in the subject property address and wait for it to display a link 2. Click the parcel description to the right of the address link 3. Click "parcel sewer wye report" -If a record is pulled up with a permit number; chances are you are connected to the city sewer. -If no record is found and it states "No Sewer Wye Permit found for this parcel"; chances are you have some sort of septic system. *This is the quickest and most accurate way to determine if a home has a septic system (other than digging it up). Jesse James 818-326-094...

It's not the end of the world after a foreclosure, short sale or bankruptcy. There are just certain time periods and specific loans that must be considered when obtaining a mortgage: Rough breakdown for Conventional Loans: -Foreclosure: 7 years -Short Sale: 3 years -Bankruptcy: 4 years Rough breakdown for FHA/VA loans: -Foreclosure: 3 years -Short Sale: 3 years -Bankruptcy: 2 years *I can email you a more detailed scenarios

Unfortunately, individuals undergoing loan modifications and short sales have notice of defaults filed during the process because of non-payment (NOD). Scammers can obtain this information due to it being public record. If the home is unoccupied and approaching a notice of sale (foreclosure auction), you may fall victim to this scam. The scam artists will forge homeowners’ signatures on a Grant Deed as well as fraudulent notaries witnessing signatures. Even though these homes are encumbered with loans, the document is still recorded & filed (inside job at the county). *Just be on notice, and call if you'd like me to run title search for you (Jesse James 818-326-0945)

When purchasing a condo/ townhouse with an FHA loan, an approved complex is required. Your mortgage broker or direct lender can offer this service for free. This search is run through the HUD website and runs from 8am-9pm Eastern time. https://entp.hud.gov/idapp/html/condlook.cfm If you want to be proactive: Step 1: Approval method should be HRAP / DELRAP Step 2: Enter state Step 3: Enter condo name if known Step 4: Enter zip code Step 5: Search type is BOTH You will need to know the name of the HOA /complex. Unfortunately this is not organized by address. The complex should be approved up until the date you close escrow. Call me with any questions! 818-326-0945