As a real estate agent, what do you think is the most important thing to find in a lender?
A lender is his or her own brand. The moment I see a pre-approval letter, I know many things in one instance: Whether or not the deal will close; whether or not the deal will close on time; and whether it will close without hiccups—all because of the person behind the letter. It’s about trust and doing what it takes to get the job done and going above and beyond to be sure it happens!
To do what you say you are going to do is a very important aspect in a lender, especially in this economy where at times it’s hard to get a loan through. It’s about calls, emails, follow up, action- communicating the status of the loan to all parties in the transaction is very important! Also, always be loyal to your lender!
I’m preparing to sell a home, what do inspectors look for during their inspection?
For home sales, meaning listings, typically there are two inspections done concurrently. One is the Home Inspection by a licensed contractor and the second is the Wood Destroying “Pest” Inspection which is done by a termite company. Both reports complement each other.
The property inspection provides the seller with a punch list of items that are in need of repair and items to look forward to dealing with in the future. The pest report also shows the amount of dry rot and any wood destroying organisms in the structure. Typically, many lenders actually require the Section 1 items to be clear prior to close of escrow.
I encourage my sellers to do the reports upfront because often times many repairs are done prior to getting the house on the market. In fact, the home’s condition, and thus the reports, can affect the actual value of the home. Reports ahead save time and money. In fact ALL home owners should get both a contractors and pest inspection even when they do not plan to sell. It’s a good way to keep your home in tip-top condition.
In your opinion, what is the most common myth that home buyers or sellers think about real estate agents and how they operate?
Sellers and buyers often times think that a real estate agent is only trying to have a quick easy sale of their home. That there is nothing more to the transaction than the transaction itself! This couldn’t be further from the truth and agents know that this manner of working is the easiest way to choke off future business.
Real Estate agents depend on the referrals of their past clients. The clients’ happiness is paramount to the transaction and the future success of the agent is dependent on clients’ satisfaction! Happy customers who send their friends and relatives to an agent they’ve worked with is the easiest, cheapest way for the agent to enjoy a successful career.
Why should you hire a real estate agent when buying or selling a home, rather than trying to do it on your own?
This is one of those questions that is frequently asked, but despite the many great answers the attractiveness of saving some money I’m going to reiterate a few key points!
The first is, if your are a buyer, working with a buyers agent is always a good idea because they are someone who knows the area and will be able to find you the key things you’re looking for in a home. But, most of all, the commission of the agents is customarily paid by the seller so you don’t have to worry about the cost of working with the agent!
Sellers, since they do pay the commission of the agents need to hear these few key things agents do that increase your home sale! First, with the market the way it is and the excessive amount of ‘short sale’ and ‘foreclosure’ properties, you need to understand how to successfully price your home for your area.
These troubled properties have brought investors and opportunists out of the woodwork looking to “steal” a home. It’s hard for the buying public to recognize the difference between homes that are priced competitively and those that are put on the market at a steep discount to attract a lot of buyers. Those homes prices are then jacked up during the bidding process.
The main thing a seller needs to be sure of is that their home is priced competitively but not so competitively it is lumped into the same category as the troubled homes in the area. An agent also has the marketing skill to get your home in front of the right eyes, and show, negotiate, and close the transaction with the least amount of hassle to you!
The Rental Market is HOT!
Investors who purchase apartments are seeing better deals now than at anytime in the past. In contrast to housing, where prices are low, inventory is growing, and loans are difficult to get, apartment vacancies are down, rents are near all times high again, and cash flow can be positive from day one.
Why is it a good time to invest in apartments? Rents nationwide now average $991, which is up from $930 in 2006. In the San Francisco Bay Area, the average rent has gone from $1,025 in 2006 to $1,200 in 2011. This is partly due to fewer rental units available as well as less new building being done over the last few years. This is evidenced by the national vacancy dropping to 6.2% in the first quarter 2011 from 8% a year ago. Additionally, demographic trends are also favorable:
- 3 million young adults now living at home will equal about 1/3 of rental demand going forward
- 2.8 million homes and another 5 million homes will have been in foreclosure by 2012, which
means 2-3 million families will have to rent for up to 7 years
If you are looking at purchasing an apartment, here is what to consider:
- You want a property that produces at least 6% return on cash investment in the first year
- If the property requires a property manager, plan on a 2-4% fee
- Repairs, etc. run about 5-6%
- Expenses should not exceed 40% of income
And, if you don’t want to be an owner, consider a real estate investment trust (REIT), which are popular again. They typically pass along on average 90% of their income to their investors and currently some are returning 20%+ on the initial investment.
Taking Advantage of Today’s Market: Investments, Retirement and Second Homes
Housing inventories are up, which means prices are low, and interest rates are still great. Put those together and you’ve got the perfect opportunity to buy a new home. But what if you already have a home you love? Are you out of the market?
Not necessarily! Have you considered buying a second or investment home, or planning for your retirement? If you are in good financial standing with good credit, this is a way you can be part of this amazing real estate market — there may never be a better time to buy! This could be the chance of a lifetime to purchase additional real estate before rates are no longer at these historic lows.
Location, Location, Location
If you’re looking for a vacation or second home, there are a lot of highly desirable areas hard hit by the downturn in the housing market that will yield great bargains. Locations with a lot of foreclosures such as Arizona, in the Phoenix and Scottsdale areas; Central and Southern California, in San Diego, San Jose and Salinas; and Miami and Panama City in Florida still have lovely properties in good shape — and these are historically great vacation spots, for you or for renting out to other travelers! Look to a national real estate company to find an agent who can help you review properties in another state.
But a vacation home doesn’t have to be a plane ride away. If you want to be able to pack up the family and drive a couple of hours to your vacation destination, saving some travel money and ensuring you’ll use the property more than once a year, then just take a look around your home state. If you’re in the city, consider a country cottage; leave your beach bungalow for a mountain retreat. If you’ve always wanted a change of scenery available when the mood strikes you, now is your chance to make that desire a reality.
If you’re pondering a retirement home, there are other factors you’ll need to consider. Do you need to stay close to family for frequent visits, or should your home be a getaway for the grandkids? Do you want a strong senior community with lots of planned activities and meetings to keep you busy, or a quiet retreat where you can be left to your own devices? These factors will influence whether you choose a retirement community in Florida or a city like Austin, Texas, with a lively arts and music scene, for your next home.
Rentals Rise
Another way to take advantage of today’s rates and housing prices is to purchase property that you then turn around and rent. Rental properties are commanding higher and higher prices as foreclosures rise and fewer people are making home purchases. In cities around the country you should be able to charge enough rent to cover your mortgage and a home repair program — and still possibly even make a little profit on top. Be sure you research rental prices in your selected area before you buy, however, so you don’t end up pricing yourself out of the market.
Prices are so low in some areas that you also have the option of just buying and holding property instead of needing to rent it out. Cities in Oklahoma, Pennsylvania and Tennessee currently have very low home prices, but Forbes.com predicts they’ll gain value in the next year. Buy low, sell high — even in a crazy housing market like this one, some tenets stay true.
Expert Advice
Look for a real estate agent who is well-versed in investment properties, especially if you are buying a property to rent in a location far from home. If you’re looking at investing in a townhouse or single-family home, you’ll need their knowledge of the area to ensure you buy in a neighborhood well-suited to renting; if you’re plunging into the apartment market, you’ll need them to help you find a property in good shape, and probably to select a management company or reliable repair service you can line up in advance. Another option is to partner with a seasoned real estate investor, providing the capital and relying on your partner’s instincts to make good choices and get a decent return on your investment.
If you’re looking for a home to use yourself or to move into upon retirement, your best bet is to visit the area yourself and engage an agent while you are there. This way you can be sure the home has all the features and amenities that are important to you and your family.
It’s a great time to jump into the real estate market as an investor or to make that second-home or retirement-home purchase, but it won’t last. Interest rates are beginning to creep up and market watchers are seeing signs of an end to this low-cost, high-inventory period. Talk to me today about your financial goals and take advantage of today’s market before this opportunity is gone!
Contact me today to learn more.
I’ve just inherited a loved one’s estate. How can a financial adviser help me?
When one inherits money from a loved one, often the emotions are mixed. When the need to deal with the inheritance arises, many people are still dealing with extreme grief. This makes it even more difficult to determine how to deal with the transfer of funds and/or property, especially when there are usually different parties—with often very different perspectives and financial goals—involved in this decision. This can be a very emotionally draining time for all.
Moving away from the emotional issues, let’s talk about the financial considerations in terms of the inherited investments.
When a parent, or other family member, dies, one of the biggest mistakes that the beneficiaries make is leaving the investments as they are, without doing any research into how they are allocated or considering alternative options. Why could this be a mistake? Because the portfolio was set up for someone typically 20 to 30 years older than the individuals who inherit the funds, and it may not fit well with their own financial goals. Also, the beneficiaries may not realize that there is a real opportunity with many investment for them to receive a “step up in basis” if they decide to sell, which means they can sell them at the value upon death with NO TAXES. This gives them a good opportunity to reposition the assets to be in line with their investment goals and risk tolerance. If the original investments are held for too long, the fear of capital gains could once more be an issue and repositioning to the “appropriate” positions may never be done.
Furthermore, it is absolutely critical to establish one’s own financial plan prior to deciding how to invest the inheritance because some companies offer different settlement options. And if you get talked into a settlement option that is not in your best interest, it may be impossible to change.
One of the biggest mistakes people make with investment inheritances is that they accept the death benefits without planning. Why is this a problem?
For example, let’s look at four million dollar estate that was left by generation 1 after already paying estate taxes (which could be as high as 48 percent on everything inherited over $2,000,000). Let’s say that the beneficiary (generation 2) is a 62-year-old man who has planned and invested well enough that he does not need the inheritance for his own financial security, but takes it anyways (because that’s what over 90 percent of Americans do). If he takes it, and then dies a year later, for example, the 48 percent estate tax will again deplete the inheritance his beneficiaries (generation 3). Estate taxes could deplete the original inheritance by another $2,000,000; however, with the proper planning in place, all $4,000,000 could have remained, avoiding both the first and second taxation.*
Troy V. Collins, RFC.**
President, McKinley Financial Group
Phone: (650) 551-8900
CA Insurance Lic. No. 0B96613
www.mkfinancial.com
* This material has been prepared for informational purposes only; it is not intended to provide and should not be relied upon for financial, legal, or tax advice.
** Registered Representative offering securities through First Allied Securities, Inc., a Registered Broker/Dealer Member FINRA/SIPC.
Investment Advisor Representative offering services through First Allied Advisory Services.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=8022621c-c1d0-4b7a-a1e1-43e056882126)
What does a college financial consultant do and why do I need one?
A college financial consultant can help in a variety of different ways. Most, will fill out all the forms for you, in order to provide the piece of mind that comes with knowing that all financial forms are filled out correctly and completely.
Second, they help with planning and ensuring you hit key deadlines. Missing deadlines on applications and financial aid can cost a lot of money in the long run.
Third, a good consultant will know where the money is. The percent of need met and the distribution of that need (need based grants vs. loans) will vary greatly depending upon the school. It would behoove you to know up front which schools can help subsidize the cost and those that can’t.
Lastly, and the most important service a consultant can provide, is to position you to reduce your exposure and in turn increasing your grant aid eligibility. The need analysis for the FAFSA and the CSS PROFILE are complex. It’s guaranteed that a professional who’s helped thousands of clients is far more prepared than if you’re doing it the very first time. A slight oversight or not fully understanding the methodology and how the different variables are weighted can cost you thousands.
For more information about preparing for your kids’ college education you can contact Mitch at mitch@collegefinancial-consultants.com, toll free at 877-859-3243 or directly at 408-395-1200
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=60860572-876c-4a45-995b-f8c97d3ccff6)
What is the average price of college and how can I know the best financial choice?
In CA, the cost of attendance (COA) which includes tuition, room/board, expenses and transportation, for a University of California school will likely be in the neighborhood of $25-30k, based on whether they’re on campus or not. For a California State University the COA is likely to be $15-20k. For a private school, the sticker price is anywhere from $40-55k.
Important to remember, private schools are far more generous with aid than public schools. Depending upon your income range, private schools can be cheaper than public. It pays to know where the money is.
Last, while the price of school continues to rise, the net cost to the family at a private institution has remained flat over the last 5 years. The same, unfortunately, cannot not be said about public schools.
For more information about preparing for your kids’ college education you can contact Mitch at mitch@collegefinancial-consultants.com, toll free at 877-859-3243 or directly at 408-395-1200
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=3f306e6f-da56-42ca-8aeb-4b98a5297c63)
What is the market like in the San Bruno Area?
There is not one particular market within San Bruno. There are several difference neighborhoods that each have their own unique feel and different market conditions. Depending on if you’re looking to buy for your own use, investment, or fix and flip– there’s a neighborhood in San Bruno that will have what you’re looking for.
There are many thriving “move-up” neighborhoods that have a very nice micro-climate and attract many buyers. These listings tend to experiencing multiple offers, and a lot of interest. Acting fast in these neighborhoods is essential if you’re competing for a home and having your paperwork, including loan pre-approval in place will help you look even more attractive to the sellers.
Then, as there is everywhere nowadays, there are the neighborhoods that are saturated with short sales and foreclosures. These neighborhoods have a lot of charm and are excellent opportunities for investors and first time buyers. If you’re looking for a great deal in a great area, these are the neighborhoods to check out.
For more information contact me at stephan@stephanmarshall.com or 650.455.1528. I’m a San Bruno native and can give you the information you need about the area and show you around.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=58fa64a9-6585-4df0-b428-3b9330b5befa)
