OK...so you may not know what kind of engine is in your car, or how many BTUs your wall heater kicks out, or how many teeth you have in your mouth...but for crying out loud...know your financial life!
A prudent individual knows a few basic things:
1. Bank and investment account balances
2. Credit score
3. Credit balances and interest rates
4. Gross and net monthly income/expenses
5. Monthly budget/cost of living
By knowing these basic things and keeping a steady hard-copy file of all things financial in your life, then you will gain not only financial competence, but a much higher amount of buying power and negotiating leverage.
Know what you can and cannot afford and spend and save accordingly.
Friday, February 27, 2009
Tuesday, February 24, 2009
President Says: "Lending is the life blood of our economy"
As I write this, president Obama is giving his address to the joint session of congress.
The jist of his housing agenda is that lending needs to be loosened and re-instated to the public.
He says he has a new housing stimulus aimed at the average American family who is facing foreclosure and not the speculator or the individual who over-extended themselves.
Predictably, he did not give any statistics or facts or numbers.
He says his plan will save the average American abou $2,000 a year.
This sounds good and all, but the problem is that the nation is a grand patch-work of micro-economies that operate independently of each other.
In San Diego, we have many micro-economies that are independent of each other. Heck, even in Encinitas we have micro-ecnomies operating independently of each other.
What we need is something that is specific not only to the financial needs of the individual family, but also to the broader American.
I was watching Mad Money today with Jim Cramer, and he said something very interesting: We need to have the government lend the money that the banks wont.
Cramer said that we need a loan program for the next 5-10 years that would allow people to refinance out of bad debt into a 40 year fixed rate loan at 4%. That is something that almost any American can use for the next few years while we ride out this recession.
Of course this won't be a band-aid fix-all. But it will help to re-flate the housing market and allow people to move on into other properties that they can afford under new lending guidelines.
What needs to be said is that people don't know how good we really do have it.
We just need to start living within our means, and taking advantage of today's low prices and interest rates.
From a speculation stand point, this is a fantastic opportunity to buy low and hold for the long-term flip, or from the investment point of view, rents are staying solid and will only go up with the job and housing market.
Investment properties are currently and artificially depressed in value because the rents are soft. The rents are soft because the job market is soft. But the crucial thing to remember is that right now, for the first time in a long time, it is less expensive to own a house than to rent it. And when that happens, get your arms around as much property as you possibly can, hold on tight, and wait for the storm to be over...
Sunday, February 22, 2009
Friday, February 20, 2009
Youth=buying power!
Youth = buying power?
How?
Well, for people just getting out of college, they are familiar with a lifestyle of thrift, small accomoations, and are more willing to sacrifice to get ahead because they don't have anything to lose.
To a 24 year old man, whose worldly possessions can fit inside the back of a 1996 Honda Civic, who has 2 years at an entry level corporate job, the world is an oyster! There truly is freedom in the humble!
These individuals are getting more and more buying power because the prices are getting lower, and the properties that would appeal to this demographic will be passed over by the spoiled majority.
Because those who are just starting out in adult life:
1. Usually don't own stocks. So no matter what number the stock market is at, they don't have to worry about retirement.
2. Jobs. Sure, the job market is tight, but youth can keep a low cost of living, therefore can settle for lower wages, and when layoffs hit, the middle management is usually hit hardest, and the lower salaries are kept if not promoted!
3. Low cost of living. Youth can get by without luxuries such as high dollar cable packages, gardners, pools, electricity. When you can furnish an entire house for free off of craigslist, more money can go into a down payment.
4. No kids. Means school districts are irrelevant, yard size is more favorable to dogs and parties.
5. Noise. Who cares about the freeway next door when there is band practice every night of the week! It's hard to hear the dull roar of rush hour traffic when the mains are turned up to 11 rocking out to Skid Row solos.
6. Roomates. The resourceful 20-something won't mind a $1500 mortgage on a 3 bedroom 2 bath house when a roomate will pay $500/mo for a room! That means homeownership can be a few roomates away from being free!
How?
Well, for people just getting out of college, they are familiar with a lifestyle of thrift, small accomoations, and are more willing to sacrifice to get ahead because they don't have anything to lose.
To a 24 year old man, whose worldly possessions can fit inside the back of a 1996 Honda Civic, who has 2 years at an entry level corporate job, the world is an oyster! There truly is freedom in the humble!
These individuals are getting more and more buying power because the prices are getting lower, and the properties that would appeal to this demographic will be passed over by the spoiled majority.
Because those who are just starting out in adult life:
1. Usually don't own stocks. So no matter what number the stock market is at, they don't have to worry about retirement.
2. Jobs. Sure, the job market is tight, but youth can keep a low cost of living, therefore can settle for lower wages, and when layoffs hit, the middle management is usually hit hardest, and the lower salaries are kept if not promoted!
3. Low cost of living. Youth can get by without luxuries such as high dollar cable packages, gardners, pools, electricity. When you can furnish an entire house for free off of craigslist, more money can go into a down payment.
4. No kids. Means school districts are irrelevant, yard size is more favorable to dogs and parties.
5. Noise. Who cares about the freeway next door when there is band practice every night of the week! It's hard to hear the dull roar of rush hour traffic when the mains are turned up to 11 rocking out to Skid Row solos.
6. Roomates. The resourceful 20-something won't mind a $1500 mortgage on a 3 bedroom 2 bath house when a roomate will pay $500/mo for a room! That means homeownership can be a few roomates away from being free!
Friday, February 13, 2009
North Park! Normal Heights!
WOW!
Ok folks, prepared to be dazzled!!
This house is all sorts of weird and cool!
It's on a super quiet street, great neighborhood, easy access to everything, and it has a MASSIVE GARAGE with some built in lofts for some room-mates!
This house is beyond cool and guess what... it's under $250,000
_________________________________________________________________
OK...now that I've primed the pump...check out this bad boy:
She's a bit small, but she's a peach!
The best part about this one is that someone has already come in and spent some money to make it rentable! It's cute and clean and needs some paint and carpet and a polish of the kitchen and one bathroom
And...it's under $185,000 wow!!
_______________________________________________________________
This next one is on a fantastic street and is by far the ugliest house on the block!
This one is saved from someone with a stronger stomach for renovation, but will be rewarded the most with the finished product.
It needs some paint, carpet, roofing, etc...but it's the last one on the block that has not been remodeled.
Offer over $165,000 to get this one and stand back, because this is a beauty!
_______________________________________________________________
NORTH PARK!!!!!!
Now for those of you who want a turn-key bargain, this is it. It's under $360,000 and already had about $100,000 worth of improvements
That means you are getting a 3 bedroom 2 bath craftsman on a HUGE lot in the best walking district in North Park...for what it's worth...with the improvements done for FREEEEE!!
Let's put it this way...you would have to buy a 2 bedroom, 1 bath house at a steal for @ $260,000, then hire an architect, contractor, and psychologist while you watch and worry and chew your nails off and you don't even get to MOVE IN for 3 months!!!
What a value! What a bargain! What a DEAL!!!
How does this make sense? Easy! You are basically buying a h
Ok folks, prepared to be dazzled!!
This house is all sorts of weird and cool!
It's on a super quiet street, great neighborhood, easy access to everything, and it has a MASSIVE GARAGE with some built in lofts for some room-mates!
This house is beyond cool and guess what... it's under $250,000
_________________________________________________________________
OK...now that I've primed the pump...check out this bad boy:
She's a bit small, but she's a peach!
The best part about this one is that someone has already come in and spent some money to make it rentable! It's cute and clean and needs some paint and carpet and a polish of the kitchen and one bathroom
And...it's under $185,000 wow!!
_______________________________________________________________
This next one is on a fantastic street and is by far the ugliest house on the block!
This one is saved from someone with a stronger stomach for renovation, but will be rewarded the most with the finished product.
It needs some paint, carpet, roofing, etc...but it's the last one on the block that has not been remodeled.
Offer over $165,000 to get this one and stand back, because this is a beauty!
_______________________________________________________________
NORTH PARK!!!!!!
Now for those of you who want a turn-key bargain, this is it. It's under $360,000 and already had about $100,000 worth of improvements
That means you are getting a 3 bedroom 2 bath craftsman on a HUGE lot in the best walking district in North Park...for what it's worth...with the improvements done for FREEEEE!!
Let's put it this way...you would have to buy a 2 bedroom, 1 bath house at a steal for @ $260,000, then hire an architect, contractor, and psychologist while you watch and worry and chew your nails off and you don't even get to MOVE IN for 3 months!!!
What a value! What a bargain! What a DEAL!!!
How does this make sense? Easy! You are basically buying a h
Thursday, February 12, 2009
Quick cash can be immediately harvested!!
So...this lil' gem just popped up
And besides the fact that it's under $200,000...
It has 4 bedrooms, 2 bathrooms, 2 car garage, in a good neighborhood with easy access to freeway. shopping, restaurants, and entertainment...
It also has some quick cash available for the plucking...
Now you will notice something very important in that photo...
can you see it?
Look again...
OK...the two large palm trees that are adjacent to the front door are called Phoenix Canariensis...or more commonly known as the Canary Island Date Palm
A reputable palm broker will give you somewhere around $100 a trunk foot for one of those trees that they feel is worth some value.
All you need to do is:
1. Buy the house
2. Call the palm broker
3. Get an estimate
4. Get a check!
I have done personally sold two palm trees off of a property and received a cool $3,000!!!
Not bad...AND they come and take care of EVERYTHING! They even fill in the hole where the tree once was! It's a great way to help recoup the cost of a home purchase!
SO...the lesson of the day is: target properties that have residual assets that can be harvested to help with the cost of your home purchase or renovation!
Wednesday, February 11, 2009
Clowns to the left of me...Jokers to the right!
Here I am...stuck in the middle with you!
So let's say you are about to buy your dream house, but you notice that from your new bathroom, there is the business end of a telescope peering down from a neighbor's window.
So you ask yourself, maybe it's an amateur astronomer who got bad coordinates, or maybe it's some guy in a wheelchair with nothing better to do, or maybe it was left behind by the CIA when they were investigating the previous owner. How can you know for sure?
Well, you can hire yourself a private investigator, call your cousin Yuriv with the KGB, and/or rack up a few breaking and entering convictions...
OR...use some LEGAL ways to find out who your neighbors are before you purchase a property!
1. Megan's Law Database. This is a free service that let's you find out if there are any registered sex offenders living in your neighborhood.
2. Superior Court Database. This handy-dandy little feature allows you to search court cases in San Diego County. Find out who sued who for what! ALSO...search your HOA if you have one!!
3. Zillow.com. You can find out who holds title to the property next door!
4. HOA minutes. If you are living in or plan to buy in a neighborhood or complex with an HOA, you can legally get access to the minutes from their meetings. Find out what's being complained about, who is the biggest sour-puss, or who is suing who over what!
5. City Building, Planning, and Code Enforcement. Find out if anyone in your area has been caught running a brothel, practicing their music too loud, or planning to put up a 90 foot tall Christmas tree next holiday season.
6. Talk to neighbors. Sure...it's old-fashioned...but this way you can find out who the gossip on the street is and avoid them!
7. Local cops. They can be great for telling you all about the right street gang to join! Look prepared by planning your palette for your new graffiti, or catching up on the latest lingo and hand-gestures!
...and always check the windows for bullet holes...that's a good indication of drive-by activity
So let's say you are about to buy your dream house, but you notice that from your new bathroom, there is the business end of a telescope peering down from a neighbor's window.
So you ask yourself, maybe it's an amateur astronomer who got bad coordinates, or maybe it's some guy in a wheelchair with nothing better to do, or maybe it was left behind by the CIA when they were investigating the previous owner. How can you know for sure?
Well, you can hire yourself a private investigator, call your cousin Yuriv with the KGB, and/or rack up a few breaking and entering convictions...
OR...use some LEGAL ways to find out who your neighbors are before you purchase a property!
1. Megan's Law Database. This is a free service that let's you find out if there are any registered sex offenders living in your neighborhood.
2. Superior Court Database. This handy-dandy little feature allows you to search court cases in San Diego County. Find out who sued who for what! ALSO...search your HOA if you have one!!
3. Zillow.com. You can find out who holds title to the property next door!
4. HOA minutes. If you are living in or plan to buy in a neighborhood or complex with an HOA, you can legally get access to the minutes from their meetings. Find out what's being complained about, who is the biggest sour-puss, or who is suing who over what!
5. City Building, Planning, and Code Enforcement. Find out if anyone in your area has been caught running a brothel, practicing their music too loud, or planning to put up a 90 foot tall Christmas tree next holiday season.
6. Talk to neighbors. Sure...it's old-fashioned...but this way you can find out who the gossip on the street is and avoid them!
7. Local cops. They can be great for telling you all about the right street gang to join! Look prepared by planning your palette for your new graffiti, or catching up on the latest lingo and hand-gestures!
...and always check the windows for bullet holes...that's a good indication of drive-by activity
Tuesday, February 10, 2009
Uncle Sam may pay you to buy your house!
First of all...get a CPA
Second of all...call your CPA
But guess what... Uncle Sam wants to give you $7,500 buck-a-roos in tax credit to buy a new house...
AAANNNDD...
Thanks to Mr. Obama and the rest of our gov'ment, we may be in line to double it!
As we draw nearer and nearer to firing the cash-cannon at the bad-debt monster, now is the perfect time to consult your tax professional to see how much you can benefit from buying a home.
So the message of the day is: if you own a house or would like to own a house, get a good CPA or other tax professional that knows all the ins and outs to real estate.
You could save more money than you could ever know! Once you factor in all the tax benefits to owning real estate (depreciation, interest write-offs, and investment property to name a few), then you can really start defending the money you are losing every month by renting and not building equity.
SO...Uncle Sam will help you buy and own a house, but first you need to do some research and for goodness sakes, call a CPA!!!
Read more about the latest on the Stimulus Plan here
Second of all...call your CPA
But guess what... Uncle Sam wants to give you $7,500 buck-a-roos in tax credit to buy a new house...
AAANNNDD...
Thanks to Mr. Obama and the rest of our gov'ment, we may be in line to double it!
As we draw nearer and nearer to firing the cash-cannon at the bad-debt monster, now is the perfect time to consult your tax professional to see how much you can benefit from buying a home.
So the message of the day is: if you own a house or would like to own a house, get a good CPA or other tax professional that knows all the ins and outs to real estate.
You could save more money than you could ever know! Once you factor in all the tax benefits to owning real estate (depreciation, interest write-offs, and investment property to name a few), then you can really start defending the money you are losing every month by renting and not building equity.
SO...Uncle Sam will help you buy and own a house, but first you need to do some research and for goodness sakes, call a CPA!!!
Read more about the latest on the Stimulus Plan here
Friday, February 6, 2009
Adorable Beach Cottage for under $420,000!!!
Celebrate the weekend!
Look at this mid-century charmer west of 5 and a few blocks from shopping, restaurants, the beach...
It was a 3 bedroom, 2 bath house, but has been converted to a 2 bedroom, 1.25 bath house.
Has a hot tub and a steam room too!!!
Look at this mid-century charmer west of 5 and a few blocks from shopping, restaurants, the beach...
It was a 3 bedroom, 2 bath house, but has been converted to a 2 bedroom, 1.25 bath house.
Has a hot tub and a steam room too!!!
Thursday, February 5, 2009
Wow!! Deals are getting snatched up!!
So the previous deal of the day (yesterday) has already gone bye-bye...
The list price was just under $110,000...and I drove a client by today and met the NEW OWNER!!!
Not even on the market for a DAY!! He said he has it tied up for $125,000
that's $15,000 OVER asking price...
That goes to show...a good deal is only a good deal if you can actually GET the deal...sometimes you need to fight for it!
Also...all you that think Condos are good investments...think again!
This article talks about property in New York, but the same applies here as well.
The problem is that if you purchase a home in a condominium complex, no matter HOW GOOD YOUR CREDIT IS or HOW MUCH MONEY YOU MAKE, lenders will ding you on the rates, fees, or even qualification!!
http://www.nytimes.com/2009/02/01/realestate/01loans.html?partner=permalink&exprod=permalink
Plus...all that money you pay your HOA could help you buy an additional $40-50,000 in mortgage buying power...if you ask me, the best neighborhoods to live in are the older, established 'hoods that are adjacent to a population center and don't have any additional restrictions or fees to live in. AND downtowns and urban areas are becoming super trendy and that means the values are strong and will stay strong!
The list price was just under $110,000...and I drove a client by today and met the NEW OWNER!!!
Not even on the market for a DAY!! He said he has it tied up for $125,000
that's $15,000 OVER asking price...
That goes to show...a good deal is only a good deal if you can actually GET the deal...sometimes you need to fight for it!
Also...all you that think Condos are good investments...think again!
This article talks about property in New York, but the same applies here as well.
The problem is that if you purchase a home in a condominium complex, no matter HOW GOOD YOUR CREDIT IS or HOW MUCH MONEY YOU MAKE, lenders will ding you on the rates, fees, or even qualification!!
http://www.nytimes.com/2009/02/01/realestate/01loans.html?partner=permalink&exprod=permalink
Plus...all that money you pay your HOA could help you buy an additional $40-50,000 in mortgage buying power...if you ask me, the best neighborhoods to live in are the older, established 'hoods that are adjacent to a population center and don't have any additional restrictions or fees to live in. AND downtowns and urban areas are becoming super trendy and that means the values are strong and will stay strong!
Wednesday, February 4, 2009
HOT deal of the day!
I found a HOUSE...
2 bedroom, 1 bath... almost 7,000 sq foot lot
for under... $110,000
in a good neighborhood
Not even 24 hours on the market
...
Offers have already flown out from two of my clients...would you like to be on my Action List?
2 bedroom, 1 bath... almost 7,000 sq foot lot
for under... $110,000
in a good neighborhood
Not even 24 hours on the market
...
Offers have already flown out from two of my clients...would you like to be on my Action List?
Tuesday, February 3, 2009
Deal of the Day!
Wowzers!
I drove all over North County today in search of my next great deal!
I looked through a few interesting homes, but this one stands out far above and beyond the rest.
Here's what you get:
Almost a full acre of usable land
A 1940 farmhouse with 1,600+ square feet
A detached garage
A pile of boulders
And vintage wood burning stove and knob circuit breakers!
All this...for around $200k
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