Mike’s Real Estate Show

Interest Rates as of 8/31/07     

Wow!  What a wild 4 weeks it has been!  I delivered twins (Rustin and Cooper) on Saturday, August 4, 2007.  Oh, and then there’s been the activity in the lending industry!  Lot’s has changed, and there are still options for your clients.  Today’s rates quoted are a small sample of current rates.  Give me a call for more information about different rates, loan products and requirements!          (707) 284-2718 

Conforming                 fully amortized                        interest only 30 year fixed               6.375%                                    6.625% 

3/1 ARM                     6.375%                                    6.625% 5/1 ARM                     6.5%                                        6.625% 

7/1 ARM                     6.625%                                    6.75% 10/1 ARM                   6.75%                                      6.875% 

Call me for Jumbo loan rates and other financing options! 

Here’s the fine print: 

Conforming limit is $417,000.00.  Rates assume impound account set up and except for 100% financing, assumes loan to value (LTV) no more than 80%.  Funds to be used for purchase.  Cash out refinances may incur higher rates.  Rates quoted with a 30 day lock.  Subject to qualifying borrowers and properties.  Rates quoted for fully documented loans.  Rates are as of 8/31/07 and are subject to change.  Rates are quoted WITHOUT points.  Borrowers may buy down the rate.  Each application is evaluated on an individual basis.  There may be better suited programs for borrowers the may offer better rates/terms as well as options for non-qualifying borrowers.  

Alicia Hodenfield Investors Trust Mortgage 

(707) 284-2718 direct line alicia@investorstrust.com 

www.aliciahodenfield.com 

10 Important Tips to Successful Real Estate InvestingBe a Real Estate Investor -

10 Important Secrets When it comes to investing, everybody has certain goals andaspirations. However, we have found that there are certain guidelinesevery aspiring real estate investor needs to know:

1. Compare Property Values and Rents Financial statistics only go so far; the best measure of a property’smarket value is often the sale prices of nearby properties. The sameholds true for area rents. A low price can often be justified by areasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need. Read the rest of this entry »

Listeners,  Yes, I have been ranting and raving lately about the debacle we call the mortgage implosion and YES–I’m going to start “cooling my jets” on the issue. I think my reaction is based on the big boys getting bailed out while the homeowner in default can’t even get his lender on the line! While the executive staff of Bear Stearns can ge the ear of the Chairman, Ben Bernanke, and threaten economic melt-down if they don’t get some relief, the consumer is told to dial a toll free number for counseling on how to loose your home graciously!! So I will try to soften my rants and get to the business of buyign and selling real estate here in Sonoma County and beyond. Remember, all real estate is local, pricing well is now king and there are great bargains in this market for the taking!

 Kris Anderson’s spin on what happened in the credit markets today, Friday, August 17

 Maybe you want to hear my interpretation on what and why the Federal Reserve lowered the discount rate today…maybe not.  If not, just delete this message.But I feel it is important as a mortgage consultant and planner to let you know what is happening in the credit markets and why it is important. Read the rest of this entry »

As a “bubble-boy” here in the “Wine-Country” of Sonoma County, we are seeing the lower end $250-$600K riddled with “subject to short-sale” or “subject to Lender Approval” (these are the agents who know we are searching our MLS “comments” for the word “Short-Sale” and avoiding those listings!). I now have to state this is “NOT A SHORT-SALE”!!
 What fries me are the lenders, obviously swamped by the Tsunami of pre-foreclosure/foreclosure loans, who have departments NOT talking to each other. I had a transaction where the seller had 5 properties she was trying to “short” with Long Beach Savings. I had an offer for one at $510,000. The loan was for $625,000. Loss Mitigation department was working with the seller and all the while the foreclosure guys watched the clock. Foreclosure time struck, they went to the courthouse got the property back then sold it ON the court steps for $367,000!! The guys who bought it called me back and asked if we still wanted to buy it. My clients said sure and we closed Friday. Now if these boys go in front of Congress and ask for the bailout you are suggesting, I think someone should bring this up!! I remember the RTC. They used the same corrupt appraisers to do the “re-appraising” of their own MAI’s!!(made as instructed).  Did we learn our lesson then? Remember the talk about eliminating the double whammy of loosing your home and THEN having to pay for the debt relief! One of my clients is facing $160,000 in ordinary income this year due to the short sale. They might be able to get around it with a “hardship” plea.
 And you know what? We’ll do this all over again in about 6-10 years!!

this is an email to Guy Kovner who wrote a front page article on the real estate market highlighting two couples/Home Sellers who are “Trapped” here in the County as they cannot sell their homes. This is my response.

 I disagree with the tenor of your article exclaiming Seller’s are “trapped” in their homes. My last 7 transactions over the past two months had an average time on the market of 14 days. They sold close to 98.9% of the listing price at the time of sale. This is an important phrase which is abused by many in my industry. “Listing price at time of sale” does not take into consideration the many price reductions which came BEFORE the FINAL list price. However, in my case we did NOT have price reductions but priced them to sell at the time we placed them on the market. Both of the parties you highlighted in your article have two thing in common—Equity and Greed!!! Read the rest of this entry »

The Benefits Of Investing In Out Of Area Properties Most of us are aware that returns on commercial investment properties in the San Francisco Bay area are among th very worst in the country. Last year, San Francisco apartments fetched an average cap rate of 4.4%. Shopping centers and retail properties fared somewhat better, normally trading at cap rates between 5.5% and 6.5%. Still when you can put your money in government securities and bank paper investments for not a whole lot less than that, many investors hav elected not to take the risk for such low returns. Still, the fact remains that real estate over time has made more millionaires and multi-millionaires than any other investment vehicle. Investing in real estate is a good decision. The smarter investors have been going out of the Bay Area, and have increasingly elected to go out of state for better returns. After all, if you can buy a freestanding Starbuck’s in downtown San Francisco at a 5% cap, and can buy a freestanding Starbuck’s somewhere in the Midwest or the Southwest for a 6.5% cap, how much sense does it make to buy the one in San Francisco? You get a 25% better return on the out of state investment. That’s a financial “no-brainer”. Most people are reluctant to invest out of state because they don’t want to travel somewhere far away every time something happens with one of their properties. They also want to keep an eye on their investments. That’s where triple net single tenant investments come in. If you lease to Starbuck’s (for instance), you have a national credit tenant on the hook for the rent. So, you know you are going to get paid. If the lease has been negotiated well on the landlord side, they have the obligation to maintain and repair any non-structural items in the premises. With a newer property, structural problems are very unlikely to occur any time soon, so you are not likely to have visit the property with any kind of frequency. Still, let’s say that you want to visit the property 2 to 4 times a year. A flight to anywhere in the continental U.S. should be under $500, and a night in a good hotel should be no more than $200. That’s less than $3,000 per year even if you go four times a year. Plus, your trips are tax deductible, so it’s even less. Those expenses simply pale in comparison to the increased investment returns that you will receive.

Listeners,

  This morning I am pleased to bring my old friend, Bill Fried of Carriage House Properties, McDonough, Georgia. We will be discussing the investment market for rentals in the greawt state of Georgia and comparing them to our market now in Sonoma County. Very interesting loan and cash flow scenarios will be revealed. Stay tuned and listen in!!