Serious professional service with your best interest at the heart of every action.
John W. Willingham, CCIM, built and fully leased up this office warehouse complex.
Consider being part of his next low risk good return investment.
661-332-9401
FORECLOSURE PROPERTY SEARCH
Commercial, Residential, MultiFamily
Are you up for the challenge of the market? Here are a few things you need to know.
1. Many Short Seller's are reluctant to show and sell.
2. There are Buyer's in the market offering more than a 100% net to the Bank controlled Seller.
3. Flip homes are best purchased after 90 days, which means no paper work can be started on the purchase.
4. Flip homes purchased will case extra expenses of at least 1% buy down, mandatory home inspection $350 and a second appraisal $500. Additionally, there are value concerns of the property coming in lower than the agreed purchase price, at which point the Seller doesn't have to sell and the Buyer doesn't have to buy.
5. Flip Seller's are motivated to sell but will not sacrifice more than 25% of their profit margin.
6. There are multiple Buyer's for each good listing.
7. Multiple Buyer's cause prices be firm or increase.
8. The net value after all expenses reveals the highest offer. If a Buyer offers $300,000 for a house but the comparable sales only indicate $275,000, the Buyer must have proof of the $25,000 difference in cash and be willing to pay the difference above the appraised value. The Seller could reduce the price to the appraised value, but this is usually addressed before the offer is accepted by taking the highest and the strongest offer.
9. Given the same purchase price the strongest offer is all cash, followed by large down payment, and best credit worthiness.
The sooner you contact me the sooner you will be equipped for the challenge. Call, text or email now 661-331-0000.
11-18-2011
Prices are low but there are fewer properties on the market. 5 to 10 for sale per square half mile.
That is about one percent inventory being chased by 3 percent of the population.
Like a great sale during the holiday season it takes you longer to buy and you don't get rain checks in real estate lines.
Contact us now before miss your opportunity.
11-17-2011
Are you ready to fill in the year the recover begins as depicted above?
We are 6 years into this current cycle and if the market goes like it went before I should be buying every piece of real estate I can.
Did you catch the episode of the Discovery Channel's "Curiosity", where Donald Trump to a look at most of the assets in America?
What he calculated was the tangible assets. He did not account the value of the US Dollar in the savings accounts or checking accounts. He did count all of our used carpet and valued it at 104 billion. Trump came up with a bottom line value for each American's cut after paying off the current 15 trillion dollar debt each American owes ($48,000 each) to our investors. Each American would get 1 million dollars. Now these figures could change.
What if a large number of American's died in a natural disaster? Each share would increase along with the burden. But wait there is more. Each human body belonging to an American was valued by Trump at 46 million dollars.
11-16-2011
Taxation of Foreclosures and Short Sales
BEWARE OF PHANTOM INCOME
The real estate market, on a large-scale basis, has been flooded with foreclosures, deeds- in-lieu of foreclosure, and short sales of real property. These distress sales and foreclosures are the result of a convergence of tightening credit, falling property values, and the consequences of prior lending practices.
Adding insult to injury, owners of real estate face circumstances, which they may be unpleasantly surprised to learn; there are two types of taxable income that can result from a foreclosure, deed-in-lieu of foreclosure, or short sale: capital gains and forgiveness of debt income ( also known as cancellation of debt—COD income). COD income has also been referred to as “phantom income.” Both types of income can trigger unexpected taxes for the owner.
Do You Have QUESTIONS?
1. Are foreclosures, deeds-in-lieu of foreclosure, and short sales subject to federal tax income taxation?
2. What is the difference between a foreclosure and a deed-in-lieu of foreclosure?
3. How does the owner receive "income" from a foreclosure or a deed-in-lieu of foreclosure?
4. What is "non-recourse" debt?
5. What is "recourse" debt?
6. How is the amount realized (taxable income) calculated for a "recourse" debt in a foreclosure?
7. How is the amount realized (taxable income) calculated for a "non-recourse" debt in a foreclosure?
8.
How is a deed-in-lieu of foreclosure treated for tax purposes?
What are the conditions of the Federal Mortgage Debt Relief Act of 2007? When does it end? Should I sell my property now, short of what I owe or wait for the values to go up?
11-10-2011
"Last week, Freddie requested $6 billion in extra aid — the largest request since April 2010 — after it reported losing $6 billion in the third quarter.
Washington-based Fannie and McLean, Va.-based Freddie own or guarantee about half of all mortgages in the U.S., or nearly 31 million home loans. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.
Fannie and Freddie buy home loans from banks and other lenders, package them with bonds with a guarantee against default and sell them to investors around the world. The companies nearly folded three years ago because of big losses on risky mortgages they purchased."
WASHINGTON
November 8, 2011, 11:59 pm ET
11-09-2011
In the cavern of time the sun may shine through an opening and reveal things previously unseen.
This moment is now in the cavern of real estate. We can see the opportunity to own a property at very low prices.
In Bakersfield California there is however, an observation I have made. The majority of properties are owned or controlled by the banking industry.
Regardless of how this happened it is the fact at this moment. The banks are holding the properties off of the market. As a result the market is suffering from a significant drop in the properties available to purchase. In 2009 there were approximately 4800 available properties and the number of available properties have continued to drop to below 2500.
This has had a negative effect for the Buyers. Now each property will have multiple offers and the prices no longer dropping in all of the areas, but are stabilizing. Each neighborhood will be effected differently. Its critical to have a professional who is experienced, knowledgeable and willing to serve you. Call now and lets discuss your plans.
661-331-0000
10-4-2011
What is your outlook on life? Are your finances in order?
Much of where we are and where we are going is by or own choice, at least for the most part up to this point for most people.
Today, if you were able, you could purchase a real estate property that would send you money every month. Would you be willing to buy such a property? What about two or three of these properties? Well, some people are doing that exact same thing right now as we speak. They might even be standing at the top of these steps. It is not as hard as you think.
Overcoming what you think you know about real estate, how to own it and what it will do for you is just a matter of updating your mental processor with the correct information. When you have the full information you can correctly judge for yourself. We can answer your question, show you cash flowing property, and direct you in the tools you will need to build your financial statement. The time to buy real estate was not at the top of the market but at or near the bottom of the market when owning makes financial sense.
09-08-2011
Know this about the real estate market, as long as it is moving there is opportunity for you to profit.
Currently, Buyer's have the opportunity to take advantage of low prices and low rates. The disadvantage to the Buyer is the low supply of properties to choose from. You may be curiously ask, "Why is the supply low when there are so many people loosing their homes and vacant houses?" This question has a very serious answer. Many are unwilling to acknowledge the fact that the majority of people sold their home at the time of their refinance or acquisition of a second or third mortgage. You could simply say now that corporations are the number one Seller of real estate and they are not motivated to give up possession of their wealth and power.
The fact is if you do not own real estate your home is not your own and you can be made to leave. If you are paying rent for real estate to call home, besides the fact that you are buying the real estate for some one else, you are also not protecting your future security but actually trading it for the things you are buying instead of saving your money for a down payment. So go ahead, enjoy your new car, nice clothes, and being entertained; there will be plenty of excuses to rest your head but you will probably be to hungry to even to mention them. Please be prepared.
____________________________________________________
The percentage of home buyers who could afford to purchase a median-priced, single family home in California declined to 51 percent in the second quarter of 2011, down from 53 percent in first-quarter 2011 but was up from 46 percent in the second quarter of 2010, according to California Association reports.
Buyers needed to earn a minimum annual income of $63,080 to qualify for the purchase of a $293,580 statewide median-priced home in the second quarter of 2011. The monthly payment, including taxes and insurance, would be $1,580, assuming a 20 percent down payment and an effective composite interest rate of 4.85 percent.
08-12-2011
Gold, Silver or Real Estate?
A nice person once asked, "Where is the best place to protect my financial future?" A wise person commented to them "Why not buy an apartment complex it sends you money every month?" The nice person went away and kept their financial future in tact by placing their money in cd's and other similar investments. The other person took some of their own money, purchased two houses on one lot for $40,000, for which they receive $1400 per month in rent from. The $1400 in rent adds up to $16,800 per year and in less the two and a half years they received all of their original investment back and still receive all the rent every month, every year for as long as they keep the real estate.
Gold was a great buy when it was at $800 per ounce but many chose not to purchase. Today real estate is a fantastic buy that will send you infinite returns (cash flow) after paying for itself, many will choose not to purchase. You however, know better and this is your time to buy real estate right now at these prices.
The real estate market can be a lot like standing line at the very last day and hour to by the toy your child wants for that special day. There are only a limited supply of properties on the market. The supply is out of your control. When everyone decides to buy real estate the supply only becomes less and the majority will be sold to large corporations for pennies on the dollar. Be good to yourself and convert your paper money into owning part of your world, the very ground you walk on can be yours and the price is right!
08-11-2011
NEW SHORT SALE LAW
There is a new California law on the books now. It will protect the mortgagee while they live in the home and pursue a Short Sale. The effect of the new law on the first and second lender will be to prevent the lenders from going after the Short Sale Seller for the monetary difference of the sales proceeds. The monetary difference is the amount the Short Sale Seller actually owed to the lenders and what the actual proceeds of the Short Sale. SB 458 adds support to the protections offered by the previous SB 931, which only the first lender in a Short Sale to accept less than they were owed on the loan as payment in full. SB 458 which became immediately effective, now prohibits the second lender from pursuing the Short Sale Seller for the monetary difference. Now people have another option to consider in the process gaining back their financial freedom.
_______________________________________________________________________________________________________________
Questions and Answers
?
Some homeowners believe, incorrectly, that contacting their lender early in the process will draw attention to their situation and result in a quicker foreclosure. In reality, contacting the lender or servicer is an important first step, and the sooner, the better. Contacting the lender provides the homeowner with an opportunity to explain their situation and the steps necessary to deal with it.
?
It is a common misconception that missing one mortgage payment will lead to foreclosure. However, the foreclosure process doesn’t begin until payments are 90 days delinquent. Lenders generally have a financial interest in keeping homeowners in their homes, so making contact as early as possible could help lenders modify terms of the mortgage or devise a repayment plan.
?
Once homeowners are behind on their mortgage payments, it becomes challenging to dig out of the hole. Some homeowners try to solve this by depleting their savings or dipping into their retirement accounts to become current on the loan. Most financial experts advise against this.
?
Delinquent homeowners may think they should stop making mortgage payments to get their lender’s attention, which often isn’t the case. When possible, homeowners should stay current on their mortgage payments and continue to contact their lender on a regular basis.
?
Homeowners who have applied for assistance or loan modification programs in the past and were turned down are advised to reapply. Program parameters are constantly changing, so the rules might have been liberalized since the last time the borrower sought help.
?
A number of free, government-sponsored housing services are available through the Dept. of Housing and Urban Development (HUD). A list of HUD-approved agencies can be found at
http://www.hud.gov
.
Is the stockmarket the best place for your money in this economy?
Email me
What is the appraised value?
Appraisals provide an objective opinion of value, but it’s not an exact science so appraisals may differ.
For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.
If you are interested in finding out the appraised value of your property click here.
2 Short Sale or Not 2 Short Sale
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
-
Your property is worth less than the total mortgage you owe on it.
-
You have a financial hardship, such as a job loss or major medical bills.
-
You have contacted your lender and it is willing to entertain a short sale.
INVESTING
Whether numbers are your forte or not, there are certain ratios and calculations every property manager should understand. Following is a look at three key ratios that apply to your property management business, how to obtain them, and what they tell you.
1) Depreciation
Depreciation reduces the cost basis of a property to reflect age and wear and tear. Note that depreciation is completed over a 27.5 year period and applies only to the actual building on the property, not the land. To calculate depreciation:
Purchase price - Land value = Building value
-then-
Annual depreciation = Building value ÷ 27.5
2) Operating Expense Ratio
The operating expense ratio is simply the ratio between total operating expenses and the gross income of your property. This total amount shows how much of your property's income is being used to actually run the property. Operating expenses include those expenditures that support the operation and maintenance of a property. Gross income is the actual yearly income - this may include not only rent, but also income from things like laundry machines and parking fees.
Operating expense ratio = Operating expenses ÷ Gross income
This total can then be converted into a percentage.
3) Net Operating Income
Calculating the net operating income (NOI) of a property will help you determine how valuable it will actually be. In order to determine this figure, you will need to calculate both your gross potential income and vacancy and credit loss (in other words, the realistic loss of rental revenue due to vacancies, etc. based on previous years' statistics). You can then complete the following calculations.
Gross operating income = Gross potential income - Vacancy and credit loss
-then-
Net operating income = Gross operating income - Operating expenses.
The Time Is Now
The current rate of increase in many investment accounts is actually loosing money due to inflation. Inflation is reported to be above 4%, but other indicators suggest it is higher, like a wild fire. The point is many have money sitting in an account that is not keeping up with the cost of living and is certainly not returning above inflation. Which is why many are moving their investment equity into real estate. One thing is certain the dirt beneath your feet is the same dirt that has existed for as long there was dirt. If you have all ready paid off your house, the next step is to pay off another house or apartment complex. Down through the history of real property ownership we can see it has always maintained a good value even though it fluctuated due to manipulation. We are currently experiencing what happens when people esentially sell their real estate for debt. They took the price of their real estate in advance and put that value into something else. The security of owning the ground you stand on free of debt makes real estate investing more than just an investment. Don't let inflation make you a believer. Real Estate is an excellent investment and hedge against the current wave of inflation. Do not waste another moment to protect your security.
Should you pay off the house?
An increasing number of homeowners are considering paying off their mortgage early. While paying off debt generally is a sound strategy, homeowners also are aware that mortgage interest is tax-deductible, so paying off a mortgage early may not be in the best interest for all homeowners.
• Homeowners with credit card debt, and those who aren’t contributing the maximum amount to a 401(k), are advised to make those the first priority. It is also important that homeowners have at least six months’ worth of living expenses in cash.
• Retirees, and those close to retirement, who are contemplating a lump-sum payoff, need to ensure they have enough liquid savings to handle emergencies and unexpected medical expenses.
• Homeowners planning to move to a larger home or downsize to a smaller one within five years are not advised to put extra money toward a mortgage.
• Those who itemize deductions on a tax return can figure out the amount of money saved on mortgage interest by multiplying the mortgage interest paid last year by their tax rate (federal plus state). For example, a couple in the 28 percent tax bracket, with a $200,000 loan at 5 percent, will save $2,781 in taxes the first year of a loan. It’s important to remember that tax savings decline further into the life of the loan, as more money is applied toward the principal.
• For many retirees, and those nearing retirement, who are close to the end of the mortgage, the interest deduction may not be considerable enough to avoid paying off the loan, especially since retirees often end up in a lower tax bracket.
Read the full story
http://money.cnn.com/2011/02/22/pf/saving/pay_off_mortgage.moneymag/index.htm
In Other News…
Ventura County Star
Pending home sales up in California
In California, pending home sales were up in January, giving a hopeful outlook for future sales, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
Read the full story
http://www.vcstar.com/news/2011/feb/23/investors-scoop-up-foreclosed-properties-pending/
USA Today
Builders offer MPG-like home efficiency labels
Just as cards are sold with miles-per-gallon labels, more new homes this year will sport labels estimating monthly energy bills.
Read the full story
http://content.usatoday.com/communities/greenhouse/post/2011/02/kb-builders-mpg-like-home-labels/1?loc=interstitialskip
CNN Money
ARMs helped sink the economy – now they’re back
After accounting for nearly 70 percent of all mortgages issued during the boom, adjustable-rate mortgages vanished during the bust, totaling just 3 percent of the market in 2009. Now, they make up 5 percent of all mortgages issued, and Freddie Mac predicts 10 percent by December.
Read the full story
http://money.cnn.com/2011/02/14/real_estate/adjustable_rate_mortgages_rise/index.htm
Chicago Tribune
Experian adds rent payments to credit reports
Renters who need to build their credit histories are getting a leg up from a major credit reporting agency.
Read the full story
http://chicagobreakingbusiness.com/2011/02/experian-adds-rent-payments-to-credit-reports.html
MSNBC
U.S. consumer confidence hits three-year high
The Consumer Confidence Index rose to 70.4 this month, up from 64.8 in January, as Americans expressed more optimism about their income prospects and the direction the economy is headed, a private research group reported Tuesday.
Read the full story
http://www.msnbc.msn.com/id/41716407/ns/business-stocks_and_economy/
San Francisco Chronicle
Mortgages in foreclosure process hit record
A record share of U.S. mortgages were in the foreclosure process at the end of 2010, matching the all-time high, as lenders and servicers delayed home seizures to investigate charges of improper documentation.
Read the full story
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/02/18/BUR91HP6D5.DTL&type=business
The New York Times
New Fed rule for mortgage brokers
Starting April 1, under a new compensation rule from the Federal Reserve, borrowers who get their mortgages through brokers will most likely pay less for their services and must be offered the lowest possible interest rate and fees for which they qualify.
Read the full story
http://www.nytimes.com/2011/02/20/realestate/20mort.html?_r=1&ref=realestate
CNN Money
Home prices near 2009 lows
National home prices fell 4.1 percent during the last three months of 2010, compared with 12 months earlier, according to the latest report from the S&P/Case-Shiller home price index.
Read the full story
http://money.cnn.com/2011/02/22/real_estate/december_home_prices/index.htm?hpt=T2
Concern Loans
•
When shopping for a mortgage, some home buyers shy away from getting multiple loan quotes, fearing their credit will be impacted when multiple parties check their credit within a short period of time. However, consumers have 30 consecutive days in which multiple pulls of a credit score, or "rate shopping," won’t affect a credit score. With that in mind, buyers should take advantage of the 30-day window and get as many loan quotes as possible to determine and secure the best rates and terms.
• There are two main types of mortgages: Adjustable-rate mortgages and fixed-rate mortgages. It’s critical borrowers are aware of each option and choose the one that best suits their situation. The most important factor in selecting a loan type is the length of time the borrower plans to remain in the home.
• Adjustable-rate mortgages (ARMs) have fixed rates for a short period, usually three, five, or seven years, and then readjust. ARMs are considered riskier because the interest rate and payments can increase when the loan adjusts. Fixed-rate mortgages have an interest rate that stays constant throughout the period of the loan.
• Both fixed- and adjustable-rate loans allow borrowers to select various repayment periods. The most common term is 30 years, but if a borrower can afford the higher monthly payments of 20- or 15-year terms loan, they will save money with the lower rate and quicker payoff period.
Foreclosure
The "Walk Away" department is a growing trend in the Real Estate Owned Asset Management divisions of the large Banks. As a REALTOR on the streets of Bakersfield once said, "property management takes a special kind of person". I'm not sure he meant that in a good way but the reality is an owner is more likey to care for their property better anyone. If the property remains vacant there are a number of problems that can occur with vandalism and theft being among them. Many REO Management companies are coming to the rescue of these assets by having a professional property management take up the owners position and maintain the property and even improve it in some cases. The "Walk Away" departments are a similar answer to the same problem of vacant properties, they essentially are managing the property being occupied by an individual who is considered the legal owner but is more like a holdover tenant.
What you should know about the market
•
When preparing for the purchase of a house, there are several items buyers must think about, such as their main priorities. Buyers should determine whether it’s more important to live in a particular type of home, such as a single family home with a garage, or in a particular neighborhood. • Some neighborhoods hold value more than others during a housing downturn. Buyers can work with a knowledgeable REALTOR® to find a neighborhood that meets their needs as well as one where home values are stabilizing or rising.
• Once a buyer finds a home he want to make an offer on, he should be sure not to make a low-ball offer. Some sellers are willing to negotiate and others are not. Working with a REALTOR® can help ensure the buyer is dealt with fairly and guided through the process.
Have you consulted with your real estate advisor this week? A professional in the business day in and day is going to know the pulse on your investment.
Call us up and challenge us to help you. If you are one of our current Client's send a quick note we can share with others.
Real Estate is an excellent inflation hedge and unlike some other investments it produces monthly cash flow. Prices and interest rates are as low as they have been in years and NOW is the time to buy. If you are intrested in buying or selling either real estate or a business, give me a call. I have been helping my Clients build wealth through Business and Real Estate Investments for over three decades and I can help you, as well.
Vision and Mission Statement
NCR's long history of success comes from decades of experience. Regardless of market conditions, we continually diversify our services in order to meet our client's investment goals.
Translate page to:
While profitability for our Owner's is one great sign of success, there are also many other less tangible indicators of our successful management skills. Vacancy rates are low.
Low vacancy rates can mean any one (and often a combination of) several good things: 1) that you're doing a good job marketing your property to new tenants; 2) that you're maintaining existing tenants; and 3) that your units are generally sought-after. However, location and pricing will always reign supreme. If you all ready own a property you can not do anything about its location unless, but you can remain competitive in the rent pricing, which requires an active role in the immediate community and their needs.New tenants from referrals. Tenants who are displeased with your property and current management are not going to recommend your property to their friends. As with client referrals, tenant referrals indicate management and pricing is in balance. We can encourage a good tenant referral by being proactive in offering incentives. Marketing strategy. The size of your online presence doesn't matter as much as the fact that it exists in the first place. The main goal is that you have some sort of online presence, large or small. We at NCR Property Management have this well in place and are continuing to make advances as technology increases.
