Hard Times In Real Estate Because of Government Regulations

I haven't been posting in a while, because my industry is stuck in the clutches of a menace: The government. There is no money to be made for most of us. The few that do have listings get them from the banks, and clear 1% to .5% of a profit after expenses generally. Business is slow, to say the least.
Here is a letter I recently sent to another Realtor who was seeking help with closing a deal. I was able to close mine because I am very good at what I do, am very proactive, have a great team of people helping me, and I got a little lucky. She will not be able to close the deal, the investors who are selling the home will lose money, and the banks will not profit. All of the parties agree to the terms and price. Everyone wants this deal to happen. This economic travesty is all because somebody in government decided that they new better than the people running their own businesses.
"Hi,
Here is the report you requested. I hope it helps. Unfortunately, the government has mandated that our markets continue to decline so long as there is a single distressed sale of a dilapidated home within 1 mile of the subject property. This only creates gridlock. And it destroys our means of making a living.
If you are tired of the government telling you, your clients, and the banks how to run their businesses I recommend this course of action:
1) Contact your representatives regarding repealing the Home Valuation Code of Conduct.
2) Vote Libertarian in all issues.
3) Recall/vote out anyone who creates new regulations and new taxes. "Progressive" policy is bad economic policy dressed up in new age, politically correct clothes. Democrats and Republicans are the same party on this issue.
The appraisers who your client pays for are now government employees, but your client still pays the bills. The appraisals you get are not an accurate representation of market value, and have no value to your clients. Why should your client be required to pay for this? Would you like to work for the government also? Enough is enough.
Best regards,
M. S. Gentile
Broker
(818) 726-5982
http://RealVana.com
http://BlackAndWhiteRealEstate.blogspot.com
Refer me to your family and friends.
I will provide your referrals with the same impeccable service that I give to you."
Whats next? The government is taking away a Realtor's choice of title and escrow companies, the very team of people we work so hard to put together that allows us to negotiate this turbulent market through a rewrite of another intrusive set of laws: the Real Estate Settlement and Procedures Act.
VOTE LIBERTARIAN before we reward our politicians again for acting in our worst interests. Repeal nearly everything possible. It will hurt, but it will also clean away the rotting flesh from the wounds our nation is suffering from.

Related articles by Zemanta

• Things You May Lose If You Don't Use a Malibu Realtor (thebestmaliburealtor.com)
• Working With Malibu Realtors: What's in it for You? (thebestmaliburealtor.com)
• What I Learned About Foreclosures From My Hollywood Realtor (thebesthollywoodrealtor.blogspot.com)
• Interview with a Malibu Realtor, Part 1 (thebestmaliburealtor.com)
• Smart Pasadena Realtors: The Best Way To Negotiate Real Estate (yourpasadenarealtor.com)

Cross Boarder Blogging Makes Good Pizza?

I am in the discovery phase of building a wood burning pizza oven at my home. I found a site that offers instructions on how to build them. After contacting the owner, he requested that I write an article for him. Check it out: How Eating Pizza With Your Friends... Can Sell Your Home Faster and For More Money?!!?
When the oven is done, we can eat some of the best pizzas around after we finish your transaction.

Related articles by Zemanta

• Do You Want A Vacation Home In Baja? (blackandwhiterealestate.blogspot.com)
• Swinefest I: Ham for the Homeless (freebrewestate.blogspot.com)
• Pasadena Realtors' Secret Insider Tricks Of The Trade: Short Sales (yourpasadenarealtor.com)

If You Want To Buy Foreclosures, This Is What You Need To Know

We got a great response from the write up on short sales, so naturally we need to educate you about the other side of the same coin: Foreclosures
Foreclosures are homes that have been "repossessed" by the banks for nonpayment of a mortgage. They tend to sell at less than market price for multiple reasons.
Why foreclosures sell for less:
1) The property has not been properly cared for or even vandalized by the former owners
2) The property has been sitting, without care, for months
3) Vandals and thieves have stolen valuable parts of the home, like copper wiring and plumbing, or have graffiti on the home, vagrants have or do still occupy the home, used the toilets without water services to flush, etc
4) The property may have been a failed business such as a half way house, sober living home, child care, boiler room, etc and odd alterations have been done
5) Massive amounts of unpermitted, improperly completed, and/or unfinished construction has been done
6) The banks who now own the property do not understand the local market for the home, and the employees of the bank do not have a vested interest in getting top dollar for the home
7) The Real Estate agents who sell these homes are inundated with work, are underpaid by the banks, and do not have a vested interest in getting top dollar for the home
8) The banks demand very specific terms of sale, will completely rewrite your offer, will not do ANY repairs/credits after agreeing to an offer, and have a take it or leave it attitude
With that said, why would you want to buy a foreclosure? The bank is effectively paying you for the work, permit compliance, management, and maintenance that they are not willing to do.
The way that they pay you is through a reduced purchase price, which may result you actually having equity in the home after the pricing downturn is over.
While foreclosures are a good source of investments, even better deals can possibly be found in traditionally marketed homes. Some homeowners will price their homes for sale at foreclosure prices. BUT, these homes do not have all of the drawbacks that I listed above. So, you can buy a turn-key home (one that does not need any work to live in or rent out) for a foreclosure price.
Both of these types of homes are great buying opportunities. For the investor who is shy about making repairs and renovations, buying traditionally marketed homes can be a much easier undertaking.

Related articles by Zemanta

• What I Learned About Foreclosures From My Hollywood Realtor (thebesthollywoodrealtor.blogspot.com)
• Pasadena Realtors' Secret Insider Tricks Of The Trade: Short Sales (yourpasadenarealtor.com)
• What I Learned About Short Sales From My Burbank Realtor (thebestburbankrealtor.com)
• Smart Pasadena Realtors: The Best Way To Negotiate Real Estate (yourpasadenarealtor.com)
• Pasadena Realtor On Short Sale Tricks Of The Trade (yourpasadenarealtor.com)

Do You Want A Vacation Home In Baja?

OK, I know I said that I would be back to blogging. But an opportunity to drive down the Baja coast with two of my brothers appeared and I jumped on the bandwagon at the last minute. It was a great opportunity to see the development and progress that is going on south of the California boarder.
Image by jess hickman via Flickr
You can buy an entry level ocean front condo near Tijuana and/or Rosarito for about $150,000 with as little as 3% down payment. You will pay higher interest rates down south, so it is preferable to cash out a US property than to get a mortgage in Mexico.
Non citizens cannot technically own Mexican property. This requirement is circumvented by holding the property in a trust, with a Mexican bank or other trusted entity as the owner, with yourself as the beneficiary. Obtaining your Mexican citizenship can take a minimum of 5 years, but may be worth it for serious investors.
You probably do not want to buy a single family home unless you plan on living there or having it occupied full time. This is because the high crime rate and lack of law enforcement in most areas. You could put up a big gate, heavy locks, and bars on the windows. But this is really not necessary. You can buy 3,000 or 5,000 square foot penthouses that are larger than many single family homes anyways. And the view from the 10th or 15th floor is incredible! You can see for 20 or 40 miles down the coast from such a height.
With all that said, it is unlikely that you will want to live permanently in any city along the Baja peninsula, with the exception of Cabo San Lucas. Most condo associations are almost empty (maybe 10% occupied) at any one time.
Starting and maintaining a successful a business is fraught with problems, as corruption, reactionary and emotional government officials, crime lords, petty police, and any number of uneducated fools will get in your way.
My brother owns and operates Picante Blue Water Sports Fishing.
This is one of the most successful fishing boat sales and charter businesses in Baja. He is full of stories about the problems I listed above. It takes a special type of person to deal with these added problems of running a business.
Until the government stamps out the rampant corruption, makes education a top priority, enforces private property laws without prejudice, encourages foreign investment more fully, steps back from the socialist populist lawmaking, becomes concerned with the safety of its citizens and visitors, and generally gets its economic act together, Mexico will be relegated to be the location for second homes, vacation homes, or any other type of home where you don't want to live full time.

Related articles by Zemanta

• Working With Malibu Realtors: What's in it for You? (thebestmaliburealtor.com)
• How I Chose The Best Malibu Realtor (thebestmaliburealtor.com)
• Top 6 Mistakes Buyers Make When Choosing a Property (yourpasadenarealtor.com)
• Burbank Realtor Forum On Selling Strategies For Burbank Real Estate (thebestburbankrealtor.com)
• Should You Buy Or Rent? Your Pasadena Realtor Has Some Answers (yourpasadenarealtor.com)

Moving Takes Me Away From Blogging

I have not been posting because I just moved into my new 3 bed, 2 bath home in NoHo. Unpacking, setting up my office, and maintaining my duties for my clients has dominated my time. I will be posting again soon.
I plan to view 3 properties priced under $290,000 in Canoga Park tomorrow morning. Details will follow on these tear down opportunities ASAP. Until then, keep on looking for investment opportunities and send me any new ideas you have!

Related articles by Zemanta

• Los Angeles Rezoning Opportunity (blackandwhiterealestate.blogspot.com)
• Moving Takes Me Away From Blogging (blackandwhiterealestate.blogspot.com)

If You Live in the UK, You Should Be Buying Real Estate In Los Angeles and California

For the past six months, investors from the UK have been contacting me about buying in Los Angeles. It makes sense: People from the UK can come to the states and double their money because of the extremely favorable exchange rates.

There are also cultural factors that contribute to the people in the UK understanding the benefits of owning Real Estate. If I lived on an island and was part of a culture with a long history, it would be very clear to me who the economic winners of the world are (hint: they all own real estate as their primary long term investment vehicle).

I have noticed that many of the people from the UK and other foreign countries have a lack of knowledge about the regulations and restrictions about who can own Real Estate in the USA. The answer: ANYONE can own Real Estate in the USA without restriction or applications or any other hindrance to the ownership and legal use of the property.

People who do not have a credit history in the USA will have to put a 30% down payment up to get a mortgage. But hey, when you are doubling your money that may as well be 15%! So for you investors with long term aspirations of owning many properties in the USA, start your credit history today! Talk to Katy Lin about credit, loans, and all the specifics at: (949) 981-2256

Take a look at my six month history for my web site, http://RealVana.com . The number of visits from the top ten countries are listed below. Traffic from the UK outnumbers the traffic from both the USA and Canada combined!

Country	Visits
UnitedKingdom	3437
United States	1332
Canada	1039
Australia	758
Germany	379
India	271
Mexico	251
Ireland	238
Spain	138
New Zealand	137

Also, we are always looking for more Realtors to join my site at RealVana.com . We are currently in the development stages, but would be happy to add your MLS listings to the site. If your territory is a different state than California, call me @ (818) 726-5982. The first to reserve a territory gets it locked in.

Related articles by Zemanta

• Smart Pasadena Realtors: The Best Way To Negotiate Real Estate (yourpasadenarealtor.com)
• What I Learned About Foreclosures From My Hollywood Realtor (thebesthollywoodrealtor.blogspot.com)
• Your Pasadena Realtor Shows You How to Get Bargain Real Estate (yourpasadenarealtor.com)
• Do You Want to Own Burbank Real Estate? (thebestburbankrealtor.com)
• Things You May Lose If You Don't Use a Malibu Realtor (thebestmaliburealtor.com)

Turnkey Duplex

11670 Erwin Street, North Hollywood, CA 91606

The Numbers:

-$45,000 down payment (asking $469,000 but should sell for as little as $450,000)
+ $9,000 credit back from purchase
- $3,650 for adding a feature, shade, and painting front patio
= $39,650 total cash outlay

+$2,900 current potential combined rent
-$1982.81 mortgage payment (10% down, interest only, owner occupied @ 5.875%)
= $917.19 profit per month without any work

This property does not have a private feature. It also has a small shared backyard, an unfinished front patio, and a dilapidated common wall. By adding a plug in spa, inexpensive landscaping in the back, and two $299.00 canopies, you will have added large amounts of value for both units in the form of a lush, private spa.

Painting the front patio will add to the curb appeal (the valuable first impression). You should be able to rent both units for $3,450 combined after making these small fixes.

The Final Numbers:

$3,550 combined rent
- 1982.81 mortgage payment
-$562.50 tax payment
= $1,004.69 Profit after all major expenses

This income property is quick, clean, and permitted!

Call me to view this property or similar properties at (818) 726-5982 OR email me at Realtor.MG@gmail.com

To get info on qualifying for a loan on this or other properties, call Katy at (949) 981-2256

To view more properties in any area, go to http://realvana.com to search for free, with no registration required.

If you have a property that you would like me to feature here or if you currently own one that you think needs my advice on how to optimize its income potential, contact me here!

Related articles by Zemanta

• What I Learned About Foreclosures From My Hollywood Realtor (thebesthollywoodrealtor.blogspot.com)
• Should You Buy Or Rent? Your Pasadena Realtor Has Some Answers (yourpasadenarealtor.com)
• Top 6 Mistakes Buyers Make When Choosing a Property (yourpasadenarealtor.com)
• What I Learned About Short Sales From My Burbank Realtor (thebestburbankrealtor.com)
• Interview with a Malibu Realtor, Part 1 (thebestmaliburealtor.com)
• Your Pasadena Realtor Shows You How to Get Bargain Real Estate (yourpasadenarealtor.com)

What am I doing?

I have been finding awesome investment opportunities for my investors for a long time and I come across so many properties that my investors and I cannot buy, fix, construct, rent, and manage them all.
When I talk to people about how easy it is to make these opportunities pay off, I realized that their interest level is very high and that they would love to know more. If these people could only feel as comfortable as me and my investors with doing what we do, there is nothing to stop them from taking advantage of these investment opportunities.
There are millions of books with principals, theories, general ideas about Real Estate investment. I couldn't find anything with real properties that are for sale now, illustrating how to turn these into money makers. This blog is for people who a want passive cash flow, financial leverage, and the tax advantages of owning Real Estate.
All these people need is a little knowledge and advice, confidence, and to see the numbers in black and white. That is what I am going to do! You will find bits of education, tips, and important notes in big type so that you can't miss them. You will see the important numbers in similar size.
Come back often, the first person to write a check and claim a property is the one who will get it. Let me know what you think with your comments, add your own tips and knowledge, and thanks for reading!

Related articles by Zemanta

• Your Pasadena Realtor Shows You How to Get Bargain Real Estate (yourpasadenarealtor.com)
• What I Learned About Foreclosures From My Hollywood Realtor (thebesthollywoodrealtor.blogspot.com)
• Smart Pasadena Realtors: The Best Way To Negotiate Real Estate (yourpasadenarealtor.com)