Making Life Easier
Financing Vacation Rentals Made Easy
Are you ready to take your next step towards your goal of Financing Vacation Rentals, but don’t know how? If yes, and you’re looking for answers, then this blog is for you.
Short Term Rentals and Airbnb have become widespread and profitable businesses in recent years. One of the best ways to get your vacation rental business going is to surround yourself with the proper team. A vacation rental team gives you structure, direction, and freedom. A big part of your acquisition team will be the lender. Financing your vacation rentals, over just paying cash, allows you to leverage and frequently purchase more properties. But what happens when you have ‘too many mortgages’, and your loan application gets denied?
Have you been turned down by a traditional mortgage lender?
If so, Host Financial Services most of the US, and can help you qualify for a loan based on rental income.
Why should you consider Asset-Based (DSCR) Lending?
An asset-based loan also known as a DSCR loan (Debt Service Coverage Ratio) qualifies as a loan based on the property’s income rather than your own. Essentially, the property’s income should be equal to or greater than the cost of ownership (monthly principal, interest, taxes, and insurance payments).
Host Financial is an asset-based lender. Unlike a traditional lender, Host Financial makes use of the income of the asset. They also do not look at DTI, tax returns, job status, or W2s to underwrite the loan. Rather, they consider the property’s actual or projected short-term rental income, credit score, appraised value, and liquidity.
Here are some important points to know about Host Financial:
- Help rental owners make wiser decisions and do AirDNA reports right off the bat.
- They work mostly with Limited Liability Companies (LLC), so working with partners and multiple people on a deal is not an issue.
- Every asset-based loan through Host Financial requires a personal guarantor.
- One of the benefits of working with Host Financial is the ability to use the highest credit score when working with multiple borrowers or team investors.
- Turnaround time for pre-approval is the same day or next. That great deal that you find online today can be approved tomorrow.
- Underwriting approval has a typical turnaround of only 2 days.
- Still expect to do an appraisal on your asset based financing, appraisals cannot be waived.
- Contingencies can be removed within 21 days in most cases.
One thing to be aware of when writing your purchase contracts is that asset-based financing doesn’t close in 30 days. Although there is less paperwork, the typical turnaround time for this loan type is 30 to 45 days.
Qualifying for an Asset Based Loan
Our team is committed to help investors connect with the best short-term rental lenders in the business, and help make finding and financing your vacation rentals easy. The goal is to help you systemize property searches, acquisition financing, and your short term rental tasks once you acquire the investment. A strong network of nationwide lenders will make your transaction easy and efficient. Consider aligning with Host Financial and the AskAngie team to serve as your one-stop-shop for your vacation rental needs!
To see if you can qualify for that new vacation property today hop into Host Financial and click STR Revenue Calculator to confirm your ideal numbers before getting a quote to finance your next vacation rental.
Keep us posted if you’d like to write any offers in the state of California – we can help with a same-day turnaround. Just text Angie at 949-338-7408 and you’ll be on your way to owning your next investment property.
Creative, Affordable, Durable, Sustainable, & Adorable ADUs in California
Cal Earth inspirational workshops and hands-on classes offer a new way to build real estate
Today we took a field trip to the Cal Earth build & test site in Hesperia. This educational builder camp sits in Hesperia, CA because it has extreme heat, freezing cold temps, and is on a fault line. Additionally, Hesperia experiences flash flooding & washes, so it makes for a perfect test ground.
Superadobe buildings are Seismic & earthquake proof, fireproof, flood, & wind proof. They can handle snow loads and pressure. They don’t need rebar or concrete to build. They look super creative & flowy, but they are actually extremely structurally sound.
Many of the test structures at the Hesperia Cal Earth site are not maintained on purpose to see how they stand the test of time. This school has truly been built out by its students, and the first structure built in 1990’s is still standing today. It was such a fascinating experience!
Meet the Superadobe
If needed for refuge or quick builds, these structures can pop up camp in just a couple days. ‘Water village’, pictured here with Cal Earth volunteers Giovanni & Marco, is an on-site example of a cluster of single room homes, built to serve as a replica of what an actual refugee community might look like. Although designed to be temporary housing, this little village has been standing for the last 20 years.
Since superadobes are so durable, they can also stand the test of time for single family builds. Don’t feel like buying a ‘cookie cutter’ tract home? Cal Earth Institute offers preapproved plans – if you sign up for one of their workshops you’ll get a copy 😉 Of course, this is a part of the reason why we went. What’s a workshop without implementation?
We’d love to hear in the comments if you know anyone who has built a superadobe, or if you plan to build one yourself.
What Makes an Adobe Home a Superadobe?
Nader Khalili is the inventor & architect from Iran, who used to build skyscrapers for a living in Los Angeles, but he wasn’t fulfilled. He discovered Rumi, & changed his direction into sustainable building.
Not long after, Nader invented the ‘superabdobe’; which is a permanent Adobe structure. Rather than a traditional Adobe that cannot withstand a natural disaster, Superadobes are much more durable. Nader has since moved on from this realm, but his vision lives on through Cal Earth Institute.
Khalili loved biomimicry, mimicking designs and structures from nature. His designs include the ‘Seashell dome’; ‘Reptile walls’; and the ‘Koala pouch’. Not everything was biomimicry, however. The dome-obsessed architect also incorporated roofless domes for high heat; apses, and pottery domes.
Supply List to Build a Superadobe ADU
I loved how easy the supply list was. These were things that even I could carry, and didn’t need a huge truck to transport.
- 4 pt double pronged galvanized barbed wire; 12-14 gague thickness.
- 14 inch diameter bags to make 12 inch walls, just FYI you lose some width when you fill the bag with earth.
- Need coffee cans, or gallon buckets, depending on width of bags.
- Shovels,
- Tamper,
- Wheelbarrow,
- Scissors or knife
- A cement mixer or electric mixer makes things go way quicker.
- Level
- Wire cutters
- Water source
Want the FULL supply list? That’s still super short? Just TEXT “Cal Earth Supply List” to Angie at 949-338-7408.
Another thing that’s really neat is you don’t have to build a shelter at all with the earthbags from Cal Earth. You can build benches, stairs, planters, pools, fountains, fences…an Amphitheater for your Hipcamp…or whatever flowy and functional structure your mind conjures up 🙂
Pictured right is Daniel & our new Cal Earth workshop friends practicing with with the tamper. I can just see his wheels turning about what the next Flower Den Superadobe Retreat will look like – stay tuned, LOL!
Tips For Building a Superadobe Structure
A fun fact about superadobes is the heat transfer from outside is only at about one inch per hour. It won’t get too hot or too cold over the 12 hour daylight or nighttime hours. Not only do adobe’s prevent heat, they absorbs it, so that warmth slowly transfers inside to keep you comfortable at night.
Our first tips are about measuring and prepping properly for your fill:
- When laying barbed wire, measure from the center of your bag, and add 2 extra feet.
- When measuring for bag, walk the perimeter of the circle, and add 3 feet before cutting.
- Fold long bags in half & mark the middle. ‘Cuff’ the ends so plastic doesn’t fly all over.
- Partially flip bags inside out from each side, this makes them easier to fill. Be mindful to ONLY fill one side at a time.
More Pointers for a Proper Adobe Build
Since your main ingredient is earth from the land you’re standing on, you’ll want to ensure you’ve got the right mix. As you’ll be investing a lot of sweat equity, make sure to do a soil test before building to know how far you’ll need to go down in the earth to get past the living matter. It was stressed multiple times, make sure no living matter or roots are in your mix. Rocks bigger than your palm need to go too. If you can close your hand around it, then it’s fine, but larger than that should be tossed from the mix. Don’t worry though, it’s very forgiving to make the mix – there are adobe and superadobe structures across the world, & in all different types of terrain.
The tips kept flying fast at our one day workshop; I caught as many as possible. Figure they are best served here as bullet points:
- Keep everything dry & well ventilated if you are building in a wet area.
- Thickness of the wall depends on diameter of the build.
- Stabilize to resist erosion in flood zones, plan French drains & diversion. Your french drains can even be designed to water the landscape 😉
- Plan where the furniture will go before you start to build because a lot of it is built in; remember most furniture is square.. and there will be limited to zero squared angles in an adobe build.
- In case you’re only reading the bullets here, reminder to never use the top 1 ft of soil. Dig deeper to get to the inert materials like the sand, gravel, clay & silt.
- Orient windows south. Create & plan ‘Wind scoops’ facing the main direction of breeze in summer.
- PVC pipes, ceramic tubes, or even recycled bottles can be used for windows. Check out the custom ceramic windows pictured here.
- If doing radiant heat in floors, insulate under first!
- Utilize rocket stoves for simple heat sources.
- By the time you build up, its already compacted.
- Plaster right away, but don’t lay it in too thick, or else it may crack.
- Mesh or chicken wire is recommended to prevent cracking.
- Waterproof paint in wet areas.
- Note that limewash interior is anti fungal.
- If the bag needs to move, lift & pull. Don’t push.
Super Adobe Construction Made Simple
In essence, 4 main ingredients can build a pretty badass house. Sandbags, barbed wire, earth, & stabilizer. So easy. Sandbags can be made from polypropylene, hemp, or jute fiber. You can use long bags designed for adobes, or, just normal sandbags might work best if you’re doing the build with only a couple people. Stabilizer is added in the bag, like lime or plaster. From there, you’ll just cover the bags from UV rays and the elements while you build with a tarp, and you’ll be good. Note that jute might mold or rot, so it’s not recommended to build with it in winter. Supposedly jute is better for short term structures. The barbed wire acts as a velcro or glue between layers of bag and prevents the building from laterally sliding.
It seemed like the toughest part of the day was ‘completing the circle’ – which was the act of finishing each circular level on the stem wall. (That’s the straight vertical wall) It wasn’t difficult so to speak, just a process of folding both ends away from you, after propping the bag up with your feet (known laughingly as ‘bag wrangling’). Once the ends are properly sealed, you meet them up while keeping a tamp as a buttress at the seam. Then tamp the edge a bit so water goes out not in, with a slight angle to the outside. You can literally hear when the earthbags are tamped to correct compaction, the sound is louder and almost echos.
Additional important building techniques include a spring line for keeping the dome structure and trajectory of the dome even, and a compass to guide with proper perimeter and height. All these things were hand created with various tools and scraps we had on site!
Some Challenges Surrounding Superadobe Plans & Builds
No good thing comes without hurdles. In our current days of ‘buying a template ADU off Amazon’, the custom adobe build can face opposition.
Because the design elements with Superadobes are endless, it causes city officials to scratch their heads a bit. Designing these structures to easily follow the contour in the land and mold to the topography makes each one super cool, and super unique.
Let’s be honest….building officials are used to templates and squared angles. They don’t always understand domes, arches, and curves; and they aren’t extensively educated about them in the field. Confusion and inspectors don’t mix, so this means they can tend to deny the plans for your dream adobe without the proper education.
There was a point in time when Cal Earth had pre-permitted build plans, but alas, codes are everchanging… and they need to update permits. Feel free to donate time or funds to help Cal Earth get to the point of offering preapproved plans again.
Our Action Items to Support Superadobes
Locally here in CA, I’m going to see if we can get the City of Santa Ana to approve something. As Orange County’s epicenter, Santa Ana already has a ton of ADUs. Plus, many of the lots are flat with ample space for an additional small structure. And… my partner in life, Daniel, plans to talk to the building department in Sedona, AZ. We know Taos, NM is friendly to superadobes and green buildings; and would love it if you comment other adobe friendly build areas for the fellow nomads reading this blog 😉
In the meantime, one potential workaround with your city or HOA, depending on which one you’re in, is the umbrella of California’s statewide ADU law passed in 2020, SB 13.
How to Spread the Word about Superadobes and Get Involved
Of course, social media awareness always helps! You can follow & support Cal-Earth’s initiatives on Insta or Facebook. It also helps if you sign up for one of their affordable and educational hands on adobe building workshops.
If you’re inspired or thinking of building an ADU in Orange County, reach out, I’d love to come do a video tour whether you’re in progress, or have the finished adobe complete. Thought we could wrap this post up with one of Cal Earth’s favorite quotes from, you guessed, it, Rumi:
You’re Invited to Homeownership Day 2022 – Achieving Through Real Estate
January is always an ideal time to circle back to our roots, to review our long term goals, and realign with our True North. It’s a fresh new year, and anything is possible. Many people are taking a look at what needs to change, and if 2021 is any indication, we are still switching up the way we live and work in light of all that’s happened the last couple years.
As we saw people quit their jobs and aspire for extraordinary things in the year of ‘The Great Resignation‘, we also saw a huge shift in housing needs and requirements. People ‘quit’ apartments & condos, and opted for single family homes with yards. Families upgraded living space, as employment and schools had extended virtual runs. Change is still happening everywhere, and home is at the center of it all.
With so many people wanting a new environment at the same time, the demand for housing across the country reached record heights and the bidding wars began.
This is just one of the many reasons we offer Homeownership Day on a yearly basis; things always seem to be moving fast when it comes to housing, and it’s important to stay on top of the current trends to be most successful with your real estate.
Achieving Through Real Estate
The 2022 theme for Homeownership Day is ‘Achieving Through Real Estate’, and all are invited to this free virtual event on January 29th from 10am-1pm PST. Homeownership Day is designed to be inclusive for all humans – from renters curious if they can purchase property all the way through investors looking to sharpen skills and knowledge. Our program changes up each year so you aren’t hearing the same information, or outdated perspectives.
The program is brought to you in bite-sized 30 minute educational sessions, so you can get a variety of information on today’s important real estate topics. We know you’re busy, and this event is designed to bring about awareness and build relationships with the right community to accomplish your property goals.
Challenges in the recent market have been lack of inventory, bidding wars, discrimination, sharp price increases, loan / appraisal turnaround time, and more. Sessions for this year have been based around these challenges, and offer help to overcome today’s specific real estate market hurdles.
For this year’s specific sessions and offerings, click here:
https://homeownershipday.com/sessions/
If you’re looking to achieve great things with real estate, please join us and register:
Homeownership Day Online Event
January 29th, 2022
10am – 1pm PST
https://homeownershipday.com/sign-up/
Expect to be inspired with some innovative ideas and fresh perspectives. This is not your average real estate event.
In case you’re wondering, Homeownership Day will never try to pressure you into buying or selling real estate. The speakers have all agreed not to ‘pitch’; only to educate. This event is a public service that is put on through multiple outlets, so you’re never getting pigeon holed into the opinions of one particular corporation or company. Our speakers are industry experts, all hand selected with care, and our goal is YOUR success.
This year’s main sponsors are NAWRB & Vow2Save – both entities creatively serving the real estate ecosystem.
It’s my personal opinion that when we are all successful with real estate, we can focus on what is most important in life – the people and the places we love. If there’s a topic you would like to see covered at a future Homeownership Day event, please comment below so we can help you on your journey.
Read Full Post | Make a Comment ( None so far )Are you buying digital real estate yet? Land NFTs in the Metaverse are something to watch.
As I’ve been experiencing the blockchain revolution in real estate unfold, I’m seeing a whole new version of ‘real estate’ come into the picture…digital property. You’ve probably heard about the Metaverse since Facebook changed their name to Meta. But did you know that companies like Atari, Nike, and Binance have bought space in these metaverses with plans for commerce & connection? And you can too??
A focused real estate lens on NFT research & information
First of all, what exactly IS owning land in the metaverse? This digital ownership concept is executed through NFT’s, or Non-Fungible Tokens. NFT’s are one of a kind, unique, non-interchangable data stored on a digital ledger (aka the blockchain). NFT’s can be artwork, audio, video, and more… with all sorts of utility attached to them.
The metaverse realm offers a space to provide utility for these NFTs whether it’s displaying your digital art, latest fashion line, hosting a concert, or selling your product in a virtual store. The metaverse is vast and there are tons of things you can do, see, and buy in them. My particular focus has been ‘real estate’ in the metaverse. Within these digital universes you can basically purchase plots of land, build them out, flip them, rent them, or run a virtual business in them. Since these are all things we do in traditional real estate, I’m watching the space curiously.
So far it’s confusing, each ‘neighborhood’ or metaverse is different, and there are not a lot of resources available to help determine best platforms and plots. This makes me wonder if we will have virtual real estate brokers in the future? At first I thought no… because it’s just silly digital land, we could eliminate agents and advisors. And then I saw the prices. In many cases real estate NFT’s are a hefty investment which completely justifies an advisor or guide of sorts. We’re talking thousands, hundreds of thousands, even millions of dollars. For.Digital.Land.
Watch this video to learn a little more about buying land in the popular Sandbox metaverse:
Top Metaverse projects by market cap:
As of November 2021:
- Axie Infinity: 8.3B
- The Sandbox: 6.4B
- Decentraland: 6.2B
A resource I use to check the various Metaverse rankings is: https://www.coingecko.com/en/categories/metaverse
Digital currencies, not the almighty dollar, are used in Metaverses
Many metaverses have their own currency, for example Decentraland has the $MANA token used to purchase NFT’s, etc. while playing the game. The Sandbox’s token is called $SAND, and Axie Infinity’s token is $AXS. It’s important to note that you do not have to own land in these metaverses to participate, but you do have to interact using their own individual digital currencies.
There is not one ‘central hub’ for NFT land; you can purchase Decentraland and Sandbox for resale at opensea.io, you have to purchase Pavia land from the Cardano NFT search (cnft.io), Axie from the Aixe game. Every time you’d like land in a different metaverse, you’ll need to convert your currencies.
Sometimes you have to scout out how to purchase the currency that will ultimately secure the digital land, and it can take hours down the rabbit hole. Some currencies are not authorized in certain countries or jurisdictions. It’s very interesting to see these digital communities working to create the infastructure and grow. It reminds me of trying to build a website in 2007. Will be interesting to see how seamless things become in 10 years.
How to price land in the metaverse
NFT land comps seem to currently be defined by a ‘floor’ price, which is the lowest listed price on the marketplace for that NFT series at the time. Keep in mind as these metaverses evolve there are becoming popular areas, which will ultimately sell for higher prices. The 2.4M record purchase in Decentraland recently was in the ‘fashion district’. The wild card is how long will these areas be popular – since NFT’s are so new there are really no statistics on sales trends, cycles, etc. For now, here is a baseline for the popular metaverses:
Decentraland property floor: 3.33 ETH
Axie Infinity property floor: 3 ETH More info on Axie; it’s sold out for now. 1 of 4 phases sold.
Sandbox property floor: .7 ETH
Pavia property floor: 231 ADA
Other interesting metaverses to note:
Bloktopia – offers land and fractional ownership of land
Upland – game with a focus on real estate investing via crypto channels. Addresses are mapped to real world addresses…interesting!
Just for fun, a non-property related but interesting NFT:
Become the crypto mayor of any city in the world:
Map.Cryptomayor.io – And yes…I’m the crypto mayor of Mission Viejo, CA 😂 Gotta have a little fun.
Keep in mind ALL of these metaverses are VERY speculative, many without a working product yet. Please don’t jump in on a whim. It’s critical to do your own research and keep a close eye on how the space is unfolding. One thing is very certain, this will be a part of our future in some way, so keep it on your radar!
Would love to hear what Metaverses you or your family are participating in, and to what level, if any. Want to chat more? Comment below or message me on Instagram, LinkedIn, or your favorite social platform.
Read Full Post | Make a Comment ( None so far )Blockchain and how it’s changing the future of Real Estate
Tuned in to an interesting webinar this week hosted by Dan Smith with Eric Bryant from First American Data & Analytics; they were talking about real estate on the blockchain. Personally I can’t wait for this to happen, I spend half my life ‘grown up babysitting’ to maintain timelines and accountability during the escrow process. I know the blockchain will eliminate quite a bit of that.
Fibree is one of the first adopters, and they are now in 70 regions. They are a real estate technology platform that works with blockchain – keep an eye on them. Rather than talking about too many companies…let’s talk concept first.
What is Blockchain, and how does it affect real estate?
Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
https://www.ibm.com/topics/what-is-blockchain
Now that you understand what blockchain is, here are a few specific ways it can positively affect the real estate industry as a whole:
- Decreases time necessary to close property transactions (from 30-45 days down to possibly just minutes or hours)
- Offers security, trust, and transparency to the transaction
- Creates an unhackable public record
- Reduces potential for real estate fraud or data entry errors
- Streamlines the escrow process
- Upholds accountability
Question? Will real estate transactions on the blockchain eliminate escrow agents? Transaction coordinators?
Notice we say “how does blockchain”, not “how can blockchain” affect the space. Blockchain is already starting integrations with real estate transactions, and it is likely the future of our industry, similar to the way the Internet disrupted the status quo (in a good way) many moons ago.
Fractional Property ownerships and Tokenization using Blockchain
Tokenization is simply digital fractionalization – it allows you to own a piece of something. Ever wanted to own a piece of a property? Or maybe you already own a traditional timeshare. Bet that was fun to buy, LOL. But what about finding your next investment from the comfort of your own home? RealT based in Detroit is currently selling real estate on the blockchain, and there are many others in the space expected to follow.
Investor groups and investment firms are already successfully selling STO (Secure Token Offering) properties and this opens doors for thousands of new buyers to enter into investing. Want to see? Check out SolidBlock – it looks like any normal property search site…BUT… you can pay with wire, check, or crypto. Soon enough, property search platforms like this will be popping up all over the world.
Another place you can buy land, the entire plot of it, is Fabrica, which allows you to buy or sell your land completely digitally with blockchain technology.
Smart Contracts and Real Estate Transactions
Smart contracts are digital transactions being coordinated on the blockchain, and they will help maintain timelines and accountability. Smart contracts are very similar to paper contracts, working on ‘if –> then’ scenarios, but everything is done virtually instead of with paper. Smart contracts have a higher level of security and they always report and record progress honestly…which does NOT happen all the time with our current escrow process.
One thing I found interesting is our local board of Realtors has over 10,000 members, and there were less than 50 of us watching this webinar. As usual, it seems like the real estate industry tends to cling to their ways. As a techie, I embrace new technology and try to help my clients ride the wave.
Crypto loans – Something to keep an eye on
One thing that could completely change the mortgage space is cryptocurrency loans. Wallets like Celsius and others use actual data to digitally approve loans, much better than the ‘preapprovals’ that lenders offer today. I would personally love to see more of this, because it eliminates loan discrimination and assures the seller a buyer is qualified. Plus, a crypto loan will close much quicker than the traditional big banks. Less headaches will equal more people in the space, and more homeowners, which makes my heart smile to think about.
If you’re sitting on a pile of crypto from the bull run and would like to ‘take profits’, we can help with escrow companies who are familiar with cryptocurrency closings. If you’d like to cash out crypto to buy a home, OR just transfer crypto coins for a home purchase without cashing out first, we can help with the proper referrals or team. Feel free to reach out and text Angie at 949-338-7408 or comment here anytime you’d like to talk tech & real estate!
Read Full Post | Make a Comment ( None so far )Women finding freedom through the sharing economy of AirBnB
Let’s be honest, a lot of females are juggling household schedules, making beds on the daily, and working full time jobs in customer service or hospitality type industries. A lot of these same females are also searching for a way to spend more time with loved ones, and to find a better work-life balance.
This brings the question: How can we live richer, more fuller lives while making a difference in the world? Keep close connections with our families & still sprinkle what we were meant to do into the ethosphere?
For those who have a passion to roam and to create, enter the opportunity of vacation rental management, AirBnB experiences, and niche property rental platforms.
If you have a unique property or space, big or small, this is an opportunity for you. People love to rent not only stick & brick type properties, but also RV’s, boats, cars, treehouses, yurts, water towers, and land.
We now live in a world where you can tow a trailer, link up to solar, put out a cell booster, charge devices, and work / connect from almost anywhere. As the clouds from Covid continue to lift, people are ready to explore this new world. Are you ready to connect with them?
I recently had the opportunity to interview some of these women who have opened their spaces in the home-sharing economy. Each has a unique story to tell, weaved in with their life passions and experiences.
Take for example entrepreneur Heather Carter, running Eureka Springs Coffee House with 2 AirBnB units above. Guests enjoy the main strip of historical Eureka, Arkansas; and also have discount offerings at the coffee shop below. Travelers include vacationers and business professionals alike. In a recent video interview with Heather, she said “We used to live above the coffee house ourselves, but we soon discovered we had a unique opportunity for rentals here”. Indeed she did!
Heather advised she prefers the niche with commercially zoned properties, so she can avoid any roadblocks with residential vacation rental limitations. If you aren’t sure about STR rules in your community or city, be sure to research accordingly to avoid pitfalls.
Another go-getter making the most of her skills is April Snow-Kass, a Realtor in LA specializing in harmonious homes for musicians. April recently branched out to nearby Joshua Tree as a vacation rental host. Now, not only can April sell property in a new area, she can speak to personal experience on the equity gains and the rental income her ‘Retro Ranch‘ in the JT desert is recently experiencing.
Let’s not forget supermom and High School Counselor Carolynn Cribley. Her and financé Matthew Herman in Grandville, Michigan, are putting an extra room in their home, coined ‘The Barnhouse,’ to STR use. They stated in a recent interview that it’s brought such great results, they not only bought another property, but looped parents in on the opportunity. They inspired and guided Matthew’s parents to a short term rental purchase as well. Not only has Carolynn & Matthew created additional monthly cash flow (partly used to build a fun new pool!), they’ve hopped the family on the path to generational wealth.
According to the NAWRB’s website and WHER report:
“…research found women seek homeownership for these primary reasons:
As a “Sanctuary”
https://www.nawrb.com/one-tough-mother-how-single-mothers-are-defining-the-homebuying-process/#more-18821
A sanctuary is defined as a place of refuge, an oasis or a retreat. Women value creating a unique space from which to retreat from the outside world—one in which they control the climate, the decor, the layout. One’s home is a psychology of space…”
Vacation rentals are a method to live this ‘sanctuary’ lifestyle, and create income. Win-win.
Another example is Corporate Executive ‘girlboss’ Vanessa Montanez, who explained to Homeownership Day attendees in January easy steps to enter into investing. Vanessa discovered the benefits of renting her Temecula wine country home on AirBnB recently, and as a lender herself, was kind enough to share strategies with other would-be investors at Homeownership Day.
Admittedly, all of these hosts know STR life is not as ‘passive’ as long term rentals; but it can be more profitable, plus it allows the ability to vacation in your own property, afford *more* units, & / or meet new friends. Yes, you may still be making beds, running multiple schedules, and rocking your 9-5. But it’s a way to squeeze the most out of almost any property.
Best of all, homeownership is open to many, regardless of education level or background. With low interest rate loans and programs like FHA allowing as little as 3.5% down, many females are opting into a property purchase. Additionally, SBA loans for Women Owned Businesses have opened even more doors to run a viable business from home. There are many options to sell creations of any kind from home, be it via online avenues or to guests traveling through your space.
Speaking of online avenues, the fast-track growth of property rental apps makes the marketing side become much easier. You don’t have to do your own Search Engine Optimization anymore – these apps are paying to get the word out on your behalf. Platforms to easily start your sharing economy hosting on are AirBnB, VRBO, Hipcamps, Harvest Hosts, Furnished Finder, Outdoorsy, Turo, and more.
For additional information or a guide into the vacation rental lifestyle, reach out to NAWRB Delegate Spokeswoman Angie Weeks, or watch her video interviews at http://www.YouTube.com/HomebuyingRegistry/
This article was written for Women in the Housing and Real Estate Ecosystem; NAWRB. If you would like an article for your publication simply comment below or reach out to Angie at 949-338-7408.
Read Full Post | Make a Comment ( None so far )Building affordable housing on church properties and faith based campuses
Today we’re bringing you notes on a feel good panel we recently attended offering unique properties for affordable housing – churches! There were over 100 attendees on the zoom webinar from various faiths, geographic areas, and careers. It was neat to see the path of convergence among so many diverse and brilliant minds. Thank you to our friends over at YIMBY for putting this together ❤
Our Affordable Housing Panelists were:
Jill Shook, Making Housing Happen
Jill assists churches in exploring housing in site. She’s also an author.
Sarah Walker and Alexa Washburn, National Community Renaissance
National Community Renaissance is a non-profit affordable housing developer.
Honorable Rusty Bailey, former mayor of Riverside
Mr Bailey is now the director of Path of Life, a nonprofit with programs for housing, outreach, employment and more.
Bishop John Taylor 3rd, Episcopal Diocese of Los Angeles
A faith based community of 147 congregations, 40 schools, and 18 major institutions.
Elizabeth Hansburg, YIMBY
Thank you to Elizabeth & YIMBY for bringing this panel together. YIMBY advocates for affordable housing in California.
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Bishop John Taylor 3rd led with some thoughts of ‘why’ from the perspective of the church. He said “We follow a savior who cares for the least among us. Helping with housing is literally showing love to our neighbor.” Furthermore, from a Christian standpoint, he mentioned one should note plenty of examples in the Bible where Jesus or the disciples expressed gratitude to someone who put them up for the night, or served them a meal.
One of the core values of most churches is to care about their congregation and the community, basically to be a salt and a light to everyone, regardless of their belief system. Obviously some churches have really missed the mark on this, which has caused attendance decline, and possibly some unused space(s) on the property. Churches who have stayed in touch with the daily needs of congregations know that there can be many temporary housing needs to fill. This can include members who are experiencing job loss, abuse, or catastrophe in their lives.
One way churches can help serve these needs is by offering affordable housing. It helps further a shared mission, helps the community, creates a legacy, and builds bonds for that organization to become a trusted staple in the neighborhood. Heck, if you’re a church in LA…just sharing your parking is a huge blessing :). But to promote Fair and affordable housing – now that’s a big stride toward The Great Commandment.
Here’s a helpful video YIMBY made for the city of Carlsbad, CA that explains why all cities need to plan for affordable housing. One can easily see how churches and city governments can build a bridge to Affordable Housing together by repurposing unused or under utilized space:
Nice concept repurposing church land. But what does it REALLY look like, and what’s the timeline?!
Southern California has a great example in Riverside with Mayor Rusty Bailey – and his ‘Love Your Neighbor Initiative’. Here’s a timeline screenshot that Mr. Bailey discussed for the City of Riverside, CA.
Interested? According to the experts, just 1/2 acre can work. Close to transit is helpful, but not required. Would you like an example to take to your town? We love those, and the city of Riverside in the spirit of ‘teaching a man to fish’ has shared a template for faith-based affordable housing with all of us. Check it out!
National Community Renaissance’s Sarah Walker has been working on an affordable senior housing project called Orchard View Gardens in Buena Park. Sarah also mentioned a development in Santa Ana, and has been bringing various affordable housing projects to fruition in OC. Here’s a site plan Sarah shared of Orchard View Gardens. As you can see the space offers multiple uses for both seniors and the community:
Getting your church started with affordable housing
It is possible to add income to various faith based properties and help with needs in your city – you can get started by contacting any of the experts on the panel, and your city planner. They need you to get the ball rolling.
We get it…you’re thinking this all sounds really cool… but how can someone reading this blog post who isn’t involved in building, zoning, or church leadership help?? Glad you asked!
5 Ways YOU can promote affordable housing in your community:
- Join YIMBY www.peopleforhousing.org & donate.
- Advocate for the city you live in to put in plans to change zoning.
- Particularly, encourage cities to do an ‘overlay zone’ for church properties to allow anyone who wants to develop this overlay zoning ability. This includes adaptive reuse.
- Order & read Jill’s book: Making Housing Happen, 2nd Edition: Faith-Based Affordable Housing Models
- SHARE this post with a decision maker at a church, or on your social media. Let’s spread more good word.
Want more info? You can watch the full replay here: https://youtu.be/GntTXqYXcfQ?t=22
Have other ideas for affordable housing or how churches can help incorporate extra land to serve the community? Comment below!
Read Full Post | Make a Comment ( None so far )History and Current Rules of Fair Housing
It’s important to remember and understand where we have been, to have the best future possible. Today I had the pleasure of attending Young Professionals’ Network webinar on The History of Fair Housing.
Equality is an important topic of discussion in our country right now. One of the best ways we can honor our Constitution stating ‘all men are created equal’ is through housing.
For the purpose of learning and growing, let’s start with a summary of
Where we went wrong with discrimination in housing:
- ‘Men’ in the quote above meant white men who owned property; not women, nor men of color
- Real Estate boards prohibited women or blacks in the early 1900’s
- Redline (racially segregated) areas where residents could not get a mortgage were established
- Racially restrictive CC&R’s
- Federal Fair Housing Act was not passed until 1968
- Realtor Code did not prohibit discrimination until 1974 (that’s under 50 years ago…)
- Protected class of marital status only recognized since 2005 in California
- Gender identity was not protected until 2012 in CA
- AFFA Rule is rescinded in 2020 by POTUS. This took the teeth out of Fair Housing enforcement.
Yes, we went horribly wrong, but there are many ongoing efforts to bring about equal housing in the last few decades and today. This includes lobbying efforts from the National Association of Realtors, and California Association of Realtors to bring back the important elements in AFFA.
Did you know that nationwide there are 7 Fair Housing protected classes? In CA, there are 24 Fair Employment & Housing protected classes. When it comes to Fair Housing, the greater of regulations apply, not the lesser. So… if you are a landlord in California, you have 24 classes to remember to truly make unbiased decisions with your tenants. To help you, there is a new Fair Housing disclosure that is now included in each California purchase or lease agreement.
Sometimes discrimination can be subtle, or without malice. Here are just a few examples of Discrimination in Housing…some may come as a surprise to you.
What Discrimination in Housing Looks Like:
- Treating anyone unequally
- Failing to show a home or lease
- Offering unequal terms
- Advertising specific terms or preference
- Inquiring about a protected status
- Refusing to accomodate a disability (aka emotional support animals)
- Denying a family with children’s offer because you don’t think your pool or busy street is safe for them
- Refusing to rent an upper unit to an elderly tenant because you feel stairs are too dangerous
- Showing preference for one protected group above another (i.e. preferring a family with children over a gay couple)
- Not renting the home to a family with multiple kids because ‘the children will destroy the home’.
- Not treating everyone with the same professional courtesy (greetings, returning calls, tonality, response time)
- Buyer or agent ‘love letters’; especially those with photos
Up until this year, I was an agent sending & receiving love letters. I had no idea they were an indirect method of discrimination; and our stories previously helped my clients get the deal. 2020 brings about many changes, and I am happy to adjust course to assist in offering a better opportunity for all. Please, encourage other professionals in the industry and owners to practice making selling and leasing decisions based on criteria that does not exclude. I will recommend future sellers do not read letters during the decision making process. We can all improve from here and be better at this.
Here’s an interesting infographic with the most common Fair Housing complaints from 2018:
If you know someone who has been party to discrimination in housing, it’s important to educate, and to speak up. Here’s a link to submit a violation:
The only way we change the cycle and truly offer equal housing to all humans is through a system of ethics, awareness of implicit bias, and accountability measures. Feel free to comment your thoughts or experiences below – let’s bring about some positive acknowledgment to build better, stronger, more diverse communities together.
Read Full Post | Make a Comment ( 1 so far )Endorsed by NAR for Foreclosures and Short Sales
Short Sale & Foreclosure Resource
Struggling to make your mortgage payment?
Today we sharpened our short sale and foreclosure sword – YES, it’s a battle! Armed with a new designation from the National Association of Realtors (NAR); called Short Sale & Foreclosure Resource (SFR), now we’ve got the most recent tools to fight a foreclosure and win.
There’s plenty of talk about a potential foreclosure wave once all the COVID forbearance terms have come to an end.. so its important to stay fresh on bank policies, foreclosure timelines, and tools to use to save your property from foreclosure, right?!
Yes, we made it through the recession of 2007-2011 closing plenty of bank owned properties and short sales, but that was 10+ years ago. Platforms and policies have changed.
REO stands for ‘Real Estate Owned‘, and is a common term for a property that has been foreclosed. REO’s are property the bank comes to own because the borrower defaulted or could not financially afford to remain in the property. As a foreclosure resource, we can help you STOP your property from becoming a foreclosure, and we can also assist banks in selling off their REO inventory.
Who’s involved in distressed property situations
Servicer – who you make your mortgage payment to, they may or may not own your loan.
Investor – beneficiary entity who owns the promissory note & mortgage or deed of trust on a property.
Borrower – party in distress; typically struggling to make payments or need to sell when equity is negative.
Buyer – potential purchaser of the home
GSE – Government Sponsored Enterprises (Fannie Mae, Freddie Mac, and others in the secondary money market)
Important Foreclosure Terms to Know
Deed in Lieu – Involves swapping your keys in exchange for relief on the mortgage. Sometimes this will lead you to a 1099 for the money returned. Never do a deed in lieu before you understand the tax ramifications.
Loan Modification – Loan Mods are a permanent change in one or more of the terms of your loan. These must be approved by the investor, servicer, and you. It typically reorganizes the mortgage into something more affordable so you are able to stay in your home.
Notice of Default (NOD) – Official notice of default, and begins your foreclosure timeline. All borrowers have at least 90 days to bring a loan current after a NOD is filed.
Notice of Trustee Sale (NOS) – Official notice of when the foreclosure or auction will take place.
Foreclosure Sale – The actual sale of the property where the title is transferred. Homeowners become tenants upon sale, and lose rights to property ownership.
What are my options to avoid foreclosure?
There are many, but you need to act fast and regularly. One place to check is the Consumer Financial Protection Bureau (CFPB) to help you resolve any shady practices in your loan.
Another option is HHF – Hardest Hit Fund which has been extended through Dec 31st 2020. This program is in 18 states and it helps struggling homeowners with mortgage assistance.
MakingHomeAffordable.gov has many trusted routes you can take, be sure to research so you know your most up to date options. Here are their current tips to avoid foreclosure.
Furthermore, there are local nonprofits in many areas who can connect you with the right resources to save your home. Contact Angie by text at 949.338.7408 ASAP if you would like an Orange County referral.
Reinstatement vs Redemption period
Reinstatement is the 90 days you have to reinstate your loan after you’ve received your official Notice of Default (NOD). Redemption periods do not apply to all states, and they begin after the property is sold in a judicial foreclosure. California is NOT a redemption state with judicial foreclosures…once the property is sold at auction it is gone.
How long does it take to foreclose on a property?
Every state is different, and has different laws. It usually takes anywhere from 90 days to 3 years, depending on the condition of the market.
Short Sale to Avoid Foreclosure
In order to complete a short sale, you must show hardship. Every bank defines this differently; but it can include illness, job loss / unemployment, divorce, 50+ mile job relocation, business failure or natural disasters.
Most banks have a ‘Short sale package‘ available on their website, and this includes a list of the documents you need to submit in order to be considered for a short sale. Some of the common items requested in a packet are:
Listing agreement
Short sale disclosure form
Listing agreement addendum
Authorization to release info form
Federal & State disclosures
Before you fill out the paperwork above it’s important to check for recourse in your state, or you could owe a tax bill on the amount you’ve been forgiven. If you’re unsure about this, check with your CPA.
Furthermore, you must get approval. Approval is a gift.. even though it doesn’t feel like it 😦 Not only do you need approval from your mortgage company, you’ll also need approval from any and all junior lienholders including 2nd mortgage, HELOC, & other liens. If you do not have approval from ALL liens then the short sale will not happen, which is why you need to communicate with your debtors early and often!
Sometimes additional costs will be paid by the investor, but you have to know how to work this into your Estimated Closing Statement (HUD1).
Short sales and foreclosures are TOUGH to navigate. Please reach out to us if you need help. Angie keeps everything confidential and will always help you with creative thinking so you have the most options with your home. Contact her at 949-338-7408!
Furthermore, Angie would love to connect with Asset managers, outsourcers, distressed property managers, and others in the banking industry who are looking for a quality agent who effectively works bank systems to get REO properties sold.
Read Full Post | Make a Comment ( None so far )
Looking to Buy or Sell a Home? See You January 18th!
8th Annual OC Home Fair
Looking to buy or sell a home? Investment property? Just curious about becoming a homeowner? Renting and want to own? WE have an event for you!
5 OC Home Fair Class Highlights
#2 Finding up to 90K to Buy Your Home – Down Payment Programs
#3 Real People – Real Estate Success Stories
#4 How Student Loan Debt Can Fit Into your Home Buying Picture
#5 Home Buying 101 – Pre-Purchase Counseling
Click here to register, just enter your information and select the class you want to attend!
Sustainable & Strong Housing – Meet Sol-Nest
Sol-Nest: Building for Humanity
Sol-Nest is “building for the right reasons” and changing the building industry while they do it! Sol-Nest strives to ensure families have a sustainable and affordable roof over their head. Sol-Nest provides people with shelter regardless of where they’re located. It is their mission to reverse the housing attrition trend by “creating resilience and lowering the threshold of affordability.”
Sol-Nest recognizes that fires, floods, hurricanes, earthquakes and tornadoes destroy thousands of homes every year. Your home is an investment, to some it is your greatest asset – the last thing you want to worry about is a natural disaster destroying your home. But how can you minimize the risk of natural disasters destroying your home without packing up and moving?
The Disaster Proof Housing Solution? Sol-Nest
Sol-Nest understands the economic effects that these events cause, thats why Sol-Nest developed a patent pending proprietary building technology that is less expensive than your typical building methods. The new building technology can be used in distressed areas to provide affordable housing, built to last longer than traditional homes. Sol-Nest, LLC homes are built to survive earthquakes, fire, floods and 250 MPH winds.
Hybrid I- Post and Panel System
The patent pending process under Sol-Nest, LLC is called HIPPS™. HIPPS stands for Hybrid I- Post and Panel System.
What Makes Sol-Nest, LLC/HIPPs homes sustainable and strong:
- The use of indigenous materials
- The use of Basalt Filament Rebar
- Stands up to an ever changing climate
- The method of laying concrete
- Quick assembly: little as eight weeks
- Designed to be implemented in large-scale housing projects
- Lower cost of building
- Ability to utilize solar power to build homes “off the grid”
If you’re thinking of building anywhere in the world, make sure you build strong. For more information, visit: https://sol-nest.com/
Interested in investing in this sustainable building technology? There’s opportunities in Puerto Rico and other gorgeous areas across the world.
Contact Garry Spain.
Phone Number: 310-625-6622
Email: intercorpresources@yahoo.com
Read Full Post | Make a Comment ( None so far )5 Benefits You Need To Know About VA Loans
To All of Our Veterans – Thank You. Happy Memorial day!
The VA loan is a mortgage loan that is designed to help eligible veterans finance their home with no down payment – guaranteed by the US Department of Veterans Affairs.
5 Benefits You Need To Know About VA Loans
1. No down payment required!
The VA loan is a $0 down payment mortgage – available to Veterans, Service Members and certain military spouses. Conventional loans typically require a down payment that can be as high as 20%. While there is no down payment required, there is a VA Funding Fee. The fee is a governmental fee that is applied to every VA loan. This fee can change based on different circumstances and factors.
2. No Mortgage Insurance!
Private Mortgage Insurance is a type of mortgage insurance that is required for borrowers who finance more than 80% of their home’s value. This is a monthly cost (or one-time upfront premium) that is added to a traditional mortgage loan. Because the VA Loans are government backed, Private Mortgage Insurance is not required by the banks! This is a huge savings for homeowners.
3. Easier to Qualify!
These loans are backed by the government so that means banks assume that there is less risk involved. These loans do not have as many qualification standards as traditional home loans. These loans are easier to obtain and allow for more credit and income flexibility.
4. VA Loan Closing Costs Are Lower!
Another cost saving perk – the VA limits the closing costs lenders can charge to VA loan applicants. The average closing cost of the loan is between 1% – 3% of the loan amount. The percentage can raise to 3% – 5% if the home is less expensive. Your real estate agent can request the seller to cover some closing costs for you – reducing more costs for you.
5. The VA Loan Is Reusable!
These loans are not just a one-time benefit. If you have earned this benefit, you have it for life! There is no limit on the number of times you may use the loan. The VA loan has accessibility to different property types, you could re-use it to buy a house, condo, new-built home, manufactured home, duplex or other types of properties It can even be used to refinance your existing mortgage.
Supporting our veterans with a lender who cares –
Have more questions about the VA loan process? Derek will be there to walk you through the process. He provides expert advice while walking you through every step of the process. You will be a client for life with Derek Beisner.
Derek is available to text on weekends: 1 (949) 637-9939
Read Full Post | Make a Comment ( None so far )Spring Cleaning – Orange County Tree Trimming Services
The birds are chirping and days are getting longer – spring has sprung! Whether you’re selling your home soon or just want to spruce it up – we wanted to share with you our favorite tree trimming service here in Orange County! Tree Trimming Team – TTT is fast, professional, and knowledgable.
Lets Talk Trees
Properly maintained trees will help you get top dollar for your home, and ‘tree hacking’ by beginners is a real struggle. You don’t want your car squished or someone falling out of the tree on your property. We wanted to provide you with a quick post supporting a small business that will help make your life easier!
Tree Trimming Team can do regular pruning, trimming, unsightly stump removal, palm tree skimming, and more. Since these jobs are tough and frequently require a team, they can turn good buyers away! If you’re planning to sell for top dollar then it’s important to have top dollar curb-appeal.
Meet The Experts (for free!)
Bob is the teams Arborist with 49 years experience! Just priceless if you have a precious tree that you want brought back to life. They offer free consultations so that you can have a true expert come out! The team is bilingual with license, insurance, bonding and workers comp. You can find their raving reviews on Yelp, Instagram & Facebook. They do commercial too.
Our contact is Amir Sharafi with Tree Trimming Team info@treetrimmingteam.com 949 874-7538 – please let him know that we referred you! You can learn about other spring cleaning professionals in our LeTip group: http://ocletip.com/
Read Full Post | Make a Comment ( None so far )Congrats! You Made It To Escrow! Now What?
Your offer has been accepted – congratulations! You’re ready to settle into your dream home and enjoy a glass of wine. The only thing standing between you and the keys to your new home is escrow, so now what? You’ve probably heard the term escrow (also referred to as closing) thrown around but didn’t quite understand what it meant. Escrow is something most people don’t fully understand until they experience it. In a nutshell, they are your neutral third party assisting to ensure the contract is executed correctly by all sides.
The Orange County Escrow Process Made Easy
Escrow protects all parties involved in the real estate transaction (including you)! Escrow is a third party service that holds a valuable asset (in this case – your “earnest” money) until the transaction between the seller and the buyer is complete. Once your offer is accepted, an escrow company is hired to implement the transaction in accordance with the terms of the sales agreement.
Does A Home Buyer or Seller Choose Escrow?
Not all Escrow companies are created equal and we always prefer to work with companies we know and trust. That said, it’s our advice to negotiate price over services. If you are a buyer, you may get the seller to accept your offer or your price if you let them choose the escrow company. In most Orange County and SoCal cases, the seller selects the escrow and title companies used for closing.
What Happens Next? How Do We Close Escrow?
It’s a series of steps in a specific order of operations. Your escrow, title, and lender will know it all and help guide you through. As your Realtor, it’s our job to make sure they are all doing theirs. Sometimes it feels like a circus and sometimes it feels like a symphony. Rather than writing you a book, here’s a fun graphic thanks to Finance Of America Mortgage to guide you through the main hurdles, contingencies and objections to overcome!
5 Tips To Make Your Escrow Process Run Smoothly
1. Let Your Lender Lead The Way!
You’ll need to sign loan disclosures before an appraisal can be ordered, so do everything your lender requests and do it promptly. This is the BEST way to have a smooth escrow.
2. Complete Documentation
The purchase agreement must be completed with signatures from all parties. The Escrow officer will send a package of paperwork, make sure to be on the lookout for this paperwork and complete it promptly. Signing documents online will help you stay organized.
3. Sign On Time
The purchasing of a home will require a significant amount of paperwork and legal documents. It is important that all of this paperwork is signed and in a timely manner to ensure that the sale may proceed without any delays. The escrow officer will take possession of these documents to ensure that all necessary paperwork has been completed, signed, and filed on time.
4. Communicate!
Check your email regularly! Your escrow officer will be reaching out to all parties involved frequently! Your escrow officer might need a signature sent over in a timely manner.
5. Halt Credit Utilization – You’re In A Financial Fishbowl
During the closing process, your financial history is being reviewed carefully and frequently. A change in your financial circumstances could implode the escrow process. You have made it this far based on your current financial standing – if changes occur lenders have the right the always make drastic changes.
Learn about what to avoid when closing on a mortgage here:
3 Ways To Mess Up Closing
If you are ready to get your escrow process stated, contact Angie Weeks at 949-338-7408!
Read Full Post | Make a Comment ( None so far )Ringing in 2019 with Real Estate Goals
What will your 2019 look like?
We have some big goals for 2019 – one of them being helping our clients achieve their real estate new years resolutions! Whether it’s buying internationally or crowdfunding a down payment for an engaged couple, we can help you accomplish them all. Every year our whole team writes down their goals for the new year and we try to help each other accomplish them. This year, we want to do the same with all of our clients. Writing them down and being able to cross them off when they are accomplished really makes you feel good and it will make us feel good to be able to help you do that.
AskAngie Team’s Goals
Our team has a few things were really excited for this year! This year we plan to really grow our Vow2Save program. We are looking forward to helping a lot more engaged couples crowdfund a down payment so that they are able to buy a home after their wedding. This has been a goal of ours for a few years, and after a lot of work in 2018 we know it is really going to be taking off this year and we can’t wait to see the things it can do for people! We also plan to travel more this year in order to have the best information in helping our clients buy overseas. Last year we went to Spain and met with Realtors there, but we want to be able to do that in many more countries.
So much more we can do for you!
If you need help selling or buying a home after a divorce or identifying a good AirBnB investment we can help with that and everything in between. We have various services that we are experienced in. Another goal we know some of our clients have is to stop renting and own their first home and we are so excited to help many people achieve that this year especially with the current rent prices in OC. We can help you figure out what your home is worth and how you can sell it fast and for top dollar! We truly value our time with our clients and being able to help them grow their real estate profile and accomplish their goals. If you have any questions or want to share your goals with us so we are better able to help you please fill out the form below or contact Angie at 949-338-7408!
Orange County Area #2 in Global Relocations
I’ve got to hand it to OCR’s Global Committee, they ALWAYS put on such relevant and informational events. We continually try to support them and keep our CIPS education up to date 🙂 Today was the Global Forum, packed with info on how we can better serve and attract foreign buyers to beautiful Southern California. International buyers are a huge market in SoCal – read on to learn more about taking advantage of this!
Did you know the Orange County & Los Angeles area is the #2 area of interest for international buyers and global relocations?
So how can we help international buyers make the most of their money, so they can close easy and afford to pay more for our properties?! One way is MoneyCorp – a unique banking tool international buyers are using to get better exchange rates and guarantee funds. Contact Andrew Graziani to learn about their no-fee / no hassle transactions. They have very small minimums to exchange, and no caps. Furthermore, they have a deep understanding of how to work with every country’s currency, which is not easy. For example, consider Brazil, one currency that bounces around up to 30% in one month, and has a ton of regulations. If you want to protect your foreign transaction, make sure to work with experts like this! There are a ton of landmines when completing a foreign transaction, as noted from our previous Global Forum.
National Economic Forecast by Lawrence Yun
Lawrence Yun is one of the most respected in our industry – as National Association of Realtors’ Chief Economist for the last 10 years… when he speaks.. we listen 🙂 Let’s start with the local picture:
Is Orange County in a Real Estate Bubble?
Of course, the first thing everyone wonders is ‘are we in a bubble?’ One recent thing to note is the housing market has not been increasing as the job market increases, which is a bit of a bummer. Regardless, Mr Yun doesn’t see any kind of extreme correction on the horizon. Home prices are 3.5x higher since 1995. Lawrence, like the other experts at the recent WCR Economic Throwdown, doesn’t believe there is a bubble. SO STOP WORRYING :))
Seriously, don’t worry, but do always be on the lookout for risks or warning signs of a market shift
- International trade wars
- Rising rates and inverted yield curve
- Shift to snowballing pessimism (perception is reality!)
We have nothing to fear but fear itself – Franklin Roosevelt
What about Interest Rates?
We are on a permanent track to increase rates, so our advice to International buyers is buyer sooner than later, the rates will only rise.
The Global Real Estate Market
Exchange rate, political environment, and comparative price appreciation are all factors that affect our foreign buyers. At this point in time, the US currency conversion is high, so we saw less foreign buyers in 2018 than in 2017. That said, we still have PLENTY of international buyers, and that is not expected to change soon, only increase. Foreigners still love to buy in the United States, overall it’s considered it very safe and secure here.
Global Committee chair Spencer Hoo introduces 2018 Global Forum speakers
As financing, exchange rates, inventory, and immigration laws all improve, we can expect more and more foreign transactions. Currently, here’s the top 5 countries buying US homes:
- China
- Canada
- Mexico
- India
- United Kingdom
19% go to Florida, and 14% come here to California!
More expectations for the US market:
- Short term uncertainty but long term solid pent-up demand
- Next 3 years of home sales…..booooorrrrrrring. No real increases or decreases
- Flat & even real estate market
If you’d like a consultation to make sure your home is attractive to the foreign buyer pool as our market softens a bit, just give Angie a call, text 949-338-7408, or WeChat.
Read Full Post | Make a Comment ( None so far )ADUs making you profit in OC
Accessory Dwelling Units (ADUs)
Anyone else notice how California keeps getting more crowded and more expensive? It is just too beautiful to leave so ADUs are great ways for adding much needed space here. They can be known as in-law suites, secondary units, guest house and more. These are more affordable for California residents because they don’t require purchasing more land or structured parking. Adding a living space above your garage, a basement apartment, or a tiny home in the backyard are great ways to add extra living space to your home. They also have the opportunity for homeowners to make a profit by adding space. Legally adding these spaces onto your home makes it the same property as the main house. They can not be bought or sold separately. The placement of the ADU may be based on criteria such as adequacy of water and sewer services and the impact of traffic flow and public safety. Some of the restrictions that may come up are parking, height, setback, lot coverage, landscape, and maximum size of that unit. Also if any of the homes are listed in the California Register of Historic Places that can change what you are allowed to do when it comes to adding and ADU.
How to make a profit with your ADU
Did you know the average rent in Orange County is currently $2,500 a month? What would having that amount of money extra in your pocket do for your budget? New law changes as of January 1st, 2018 allowed for home owners to turn their single family residence into a duplex or multi family home in order to rent out one half to make a profit and provide more housing for California residents. The unit can only be rented, and not sold. This is such a great way for homeowners to make some money. Adding on to your home or remodeling to make a separate living space may sound like a hefty project with time and money, but with the rent prices increasing in OC all the time, we think it would be very worth it.
Real Life Scenarios
We spoke to a San Juan Capistrano retiree who decided to do just this in order to make some extra money while being retired. She bought a pre-fabbed ADU for around $60,000 and is renting it for around $2,500 a month. By doing this it will be paid off in around 3 years so she will be pocketing all of that rent money every month. What a perfect way for a retired person to make some extra vacation money or start saving for grandkids to go to college!
If you want more information on how you can add an ADU to your property and what you could rent it for, fill out the form below.
Owning vs Renting in OC
Are you struggling with the increase in rent here in OC?
Most people are having a hard time staying in one place with the increase in rent for current residents every year. The Orange County Register posted that Orange County rent is up $73 a month or 3.8 percent year over year in May of 2018. There is no rent control to help current residents stay closer to their going rate after living there year after year. We have been renters before and understand the struggle of paying so much every month for something that isn’t actually yours. In reality you could be paying around the same amount every month to own a home. Believe us, it feels a lot better to make that payment every month knowing that you own your home. It doesn’t look like the price of rent is going to decrease anytime here in Orange County so now is the time to get yourself your own home.
Benefits of Homeownership
There are so many more benefits to homeownership other than just having something of your own. Most people don’t realize how affordable owning a home really is, down payment options are as low as 3.5% currently. We often think about how expensive it is to own our home, but do we ever consider how expensive it is not too? Throwing all that money away on rent every month adds up to such a high price on something you don’t even get to keep. While owning a home you are building equity which helps you have a better plan for your future. You also save on your taxes if you’re a homeowner so really, owning a home makes you some money every year in equity and tax savings. You are no longer tied to a landlord who can raise your rent or change things on you at the end of any lease and your family has a stable home to live and grow in. However, we think the best part of homeownership is the pride you feel knowing you worked hard for something that is all your own.
Rent vs Own Analysis
To help you more visualize why owning is more beneficial than renting we created a rent vs owning analysis based on a rent of $2500 a month or buying our current home on the market 16555 Sell Circle . Let’s say you had a down payment of around $10,000 and got a loan for $515,000 for the rest of the payment, with a 4.875 interest rate. You pay HOA fees of $360 a month, but you also get a tax benefit from owning a home. This is the amount you’d be SAVING to own instead of renting! Many people think they can’t afford their own home, but they definitely can! We would love to help you put together one of these for your own situation to help you see the difference in your life if you were to buy a home!
If you are interested in seeing your rent vs own analysis or if you’re ready to find your home contact Angie at 949-338-7408!
Fight Foreclosure & Win – Orange County Real Estate Stories
This week we had the unfortunate task of stopping a foreclosure sale. Long story short, the buyer’s wire didn’t get to escrow in time for escrow to move the funds to title, & title to pay off the existing loan. This put our divorcing sellers in a terrible hands-tied position and at risk of losing the 150k+ in equity they still had in their home. We had to basically drop everything & work all day & night long to save this property from being sold at auction.
I want to share how things unraveled and how we stopped the foreclosure sale, in case other Realtors or homeowners need tips on how to stop their own foreclosure or auction sale.
It Takes a Team to Fight Foreclosure
First off, I want to point out this is never a one person job. At least TWENTY people were involved & acting fast (or slow) to help pull this off. I will be giving credit where credit is due as you read on. There were at least 10 people CC’d on every email. Outside consultants who had nothing to do with this deal were called. LinkedIn connections & messages were sent. Social media posts were fired off.
It all started with an incorrect payoff demand that had Friday’s date instead of Monday or Tuesday. The property auction was scheduled for Tuesday 8/7 at 1pm. The bank HAD to be paid off before that time. Escrow brought this to my attention the previous week, stating the attorneys who were acting as the trustees for Flagstar Mortgage were not getting them the updated payoff demand. For the record, the buyer was SUPPOSED to bring his funds to escrow on Friday, but he was ‘too busy’. Gee, thanks. Attorneys moving slow, cash investors moving slow…us prodding cattle.
Come Monday, I was told at 9am by the buyers agent Clay Matthews of New Western Acquisitions that the wire had been sent. Great, we made it in the nick of time! We thought. Until escrow calls me at 11am stating they still don’t have the funds. I call Clay again, and he stated the funds have been wired, he will call B of A. Well, in his call he discovers the girl who sends out all the wires for B of A was supposedly on vacation, so the wire did not get to escrow until 1pm.
Foreclosure Sales are ALWAYS messy
This still should have been ok, but enter in technicalities, wire cutoff times, & paranoid high ups at Corinthian Title. Although escrow got the wire to title, title refused to ‘pay off’ the loan because Flagstar Mortgage would not receive the funds until Tuesday morning, and their ‘payoff demand’ expired Friday. They had an ok from Flagstar to press the payoff until 5pm on Monday, but not a moment afterward.
So, we need an updated payoff demand then. But escrow had been asking the attorneys representing Flagstar at Zieve, Broadnax & Steele since last week, & they had not given it to us. Now when we call & email 3x on Monday we get a response….it was ‘too close’ to the sale date; they refused to give us the updated document, and said they needed permission from Flagstar. How. Convenient.
I called Flagstar, and in traditional foreclosure loophole fashion, they proceed to tell me that the attorneys at Zieve must stop the sale, they have no control anymore. I get the name & extension of the rep & proceed to call back Zieve, Broadnax & Steele, who never answer the phone and have a lovely one star review on Google. I go on their website & find out who the partners are, and I email their Foreclosure Attorney along with our rep. Katherine Walker emails me back a bunch of legal mumbo jumbo but states if I can get Flagstar to request a postponement, then she will postpone the sale. An inch of progress.
I know I’m out of time and this finger pointing / permission needing / document requirements will go all the way up to the foreclosure if I can’t cut through the BS and get to a decision maker. I start with my partners first.
Begging, Borrowing & Pleading to Stop a Foreclosure
I call Teresa at Corinthian Title and she advises me that there is no way to record title if a wire is still out, absolutely none. I say fine, just pay it off tomorrow very first thing, and she advises me no, that can’t be done either, because the demand expires today. I request that she simply pad the payoff with additional funds so even if more money is owed for this one day, we still get the proper payoff over, even if it’s too much. I plead my clients case to her and still get nowhere. I realize she is just doing her job…but SOMEONE over there should be able to help me, so I ask her to connect me with an individual who CAN authorize this.
She puts me in touch with Mike Godwin, CEO of Corinthian Title, who I plead with further. Mike explains he ‘cant insure’ the title when it is in this risky of a position, and he can only record it IF we get the payoff demand AND if we now get a sale date extension. (Basically perform a freaking miracle so he can CYA) I asked him what the real risk is here and I still don’t understand what it was. I reminded him my clients have 150k in equity in this house and the bank is drooling to take back this property…and he has the power to help them, or to devastate them right now. He still refuses to record the title. Eff. I have exclusively used Corinthian for ALL my title deals since our reps moved there & this is what we get for it??? Seriously!?!!! Shame on you, Mike Godwin.
I literally hang up with policy-pushing Mike & cry. But I have to keep moving on. This is SO unfair. I can’t leave it like this. Please know…..this is where MOST Realtors would have thrown up their hands. It’s 4:45pm & no chance of a title recording today anymore. The sale is mid day TOMORROW.
Fine. If my partners wont’ help then maybe I can network. I then reach out to a real estate attorney I know to see if he knows the attorneys at Zieve, because attorneys all seem to be in the same ‘bro’ club. No luck. I ask him what for SURE way we can stop the sale at 1pm tomorrow, & he advises my clients would have to declare bankruptcy. I can’t recommend THAT to them. They are already so beat down from their divorce. I call my client with an update and he reaches out to a well connected attorney HE knows. They also email and leave a message for Katherine Walker with no reply.
Delay Foreclosure with Social Media
Sigh……..the clock ticks on… so I guess it’s time to swallow my pride & go social. I had already tweeted Flagstar on my own a couple times with nothing yet.
I proceed to search Flagstar Mortgage on LinkedIn to find someone in loss mitigation. Sweet, they are in Michigan. I’m from there, so maybe these people will show some love. I send out connection requests and nice customized emails to all of them pleading my case. While doing that…LinkedIn pops up an alert that states ‘Your connection with the most connections to Flagstar is Desiree Patno’. I know her from Homeownership Day & NAWRB. She’s BEYOND busy. I decide not to bother her.
I humbly create an Insta message recruiting my friends to help. I ask them to send a specific tweet Flagstar. I know that banks HATE being pounded on Twitter. They care more about their reputation than they do your case, so I’ve gotta pelt that to get your case handled.
I smile through my tears as friends & other do-gooders tweet out my message. I ask the buyers agent Clay to help….crickets. Oh, but he did manage to give the keys to the property away & his clients started moving in. Before close. My clients asked me about it and I literally had to tell them that I cannot focus on who is moving into your house right now…I have to stop your foreclosure. How embarrassing….status = sh*tshow.
Engage National & Local Organizations to Postpone Foreclosure
It’s about midnight, and I still can’t sleep. I decide it’s my ego that is causing me not to contact Desiree, so I email her & her trusty assistant Lucille begging for Flagstar contacts & email addresses.
I set my alarm for 5am, because thats 8am in MI, when Flagstar opens. I fall asleep praying.
I wake up at 5am & see that 12 friend tweets later, I have a DM from Flagstar that someone ‘will call me’. Excellent. Waiting. Desiree also emailed me back at 3am wanting more details. I sent them to her at 5am.
At 7am I call one of my clients and ask him to call Flagstar again & plead. We still don’t have resolution, & this sale is happening in 6 hours.
Desiree Patno calls me at 8am & gives me her contacts. YES….now I have two email addresses, and one appears to be a C level! Score for Women in the Housing & Real Estate Ecosystem being a truly VALUABLE resource to be a part of. If you’re a female reading this, join NAWRB. Now we’ve got real progress. I send both of them LinkedIn connection requests with a private message.
Another outside consultant who is an attorney advised me I must get a Flagstar email, and CC all, not just all the attorneys. He said copy EVERYONE on EVERYTHING. I usually hate doing that, but I do know it’s effective in knowing exactly where the buck stopped for accountability. I’ll do whatever I have to in order to get this closed, I can’t have a foreclosure looming on my record, or my heart, for that matter.
I send an email to Zieve & CC the new Flagstar emails, even though I have no idea if they can help or not. Zieve, Broadnax & Steele reply VERY quickly. Ooh, we must be on to something here. We have a few more back & forth & they try to take the Flagstar email addresses off the string. I add them right back on. It’s 10am and we are still going back & forth without resolution, but making small steps of progress. Will it be enough, though?
Meanwhile…Still pelting Twitter. I try CCing OC Register, Orange County Association of Realtors, and use #homeownershipmatters. This is what you call ‘making a stink’. Why haven’t they called me back yet??? Will @flagstar be a zero or a hero????? Is it seriously going to end like THIS?
11:08am Flagstar’s C level Alessandro Dinello accepts my LinkedIn request. No response, but I know he read it, and that’s all I needed. Someone who can make a decision to press a button.
At 11:57am I receive a call from David Woods with The Office of the President at Flagstar Bank. They advise me they cannot speak to me unless I get a client on the phone. I call him, no answer. I call her, no answer. SERIOUSLY??! I text him & ask the nice man on the phone if I can try to call him again. He finally picks up, and confirms it’s ok to speak with me. The Flagstar person explains that because of Twitter, our case was escalated to the Office of the President and it is now being constantly monitored. We explain to him that we need Flagstar to advise the attorneys at Zieve to postpone the sale. He says he won’t keep us in suspense any longer, that they have just done this, and will give us a 7 day extension. I would have cried of happiness but my client was still on the phone. I receive an email from Zieve while David was still on the line that they have received the request to postpone the foreclosure, and will oblige. I tell David he is my hero, and I get his direct contact info as he promises to quarterback any lagging parties for me. I wish I could find him personally on social but I can’t find him anywhere?! Regardless, I tweet out a success & thank you to my social outlets, so everyone knows Flagstar did the right thing.
The attorneys at Zieve, Broadnax & Steele sent the extension and updated payoff demand to Corinthian as Flagstar advised them to do. Corinithian closed the deal by the end of the day now that they had the miracle documents they requested of us. All that work just to buy a few needed hours of time.
Reflecting back, I honestly don’t know if this was saved by Twitter, or by NAWRB email contacts, by random attorneys calling Zieve for me, or a combo of all of the above. I DO know the grace of God was definitely involved!!!!
I want to take a moment to thank the following people who helped me on Twitter, please consider following them:
- Natalie Newman – @NikNatNew
- Brian Kimball – @brianjkimball
- Jerra Morris – @JollieJ
- Keely Crum – @crumbelievableO
- Mike Langgle – @Langgle
- Lisa Combs – @LisaBethBrush
- Liz Lewis – @lizlewisnhb
- Steve Gould – @stevenrgould
- Nicki Walsh – @SignEase
- Angela Collins – @absolutelyang
- Nancy Bau – @NancyBau
- Natalie Duarte – @NatalieduarteMM
If you are an agent, know that Twitter is your secret weapon when you’re fighting foreclosure. It’s like Yelp though, you have to be in the space already to get somewhere. Signing up for a twitter account on foreclosure day won’t cut it. You’ll need your army of followers to help you out.
If you’ve found this post helpful or resourceful, please comment! If you’ve got more foreclosure delay tactics, please comment those as well. If you need help fighting foreclosure, do NOT wait, text Angie at 949-338-7408 immediately. This one was saved with one hour and 2 minutes to spare, maybe we can save yours too!
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