Know The Law and Title Insurance

Posted on January 14, 2012 by Deborah

REO Lender CANNOT Require Buyer To Purchase Title Insurance From Any Particular Company

Ever seen REO and Short Sale listings with the disclaimer, “Seller to choose escrow/title company.”  Is this legal?  Actually, it’s a violation of RESPA. Lenders selling properties, as well as the seller’s agent representing those lenders, should be aware that while the Lender/Seller can select the escrow company, the buyer is free to use any title company he or she chooses. If speaking up jeopardizes an offer, remember this: Buyers’ agents have a responsibility to inform their clients of their right to choose a title company. Sellers’ agents representing lenders have a responsibility to act in accordance with RESPA. It’s that simple.

According to the California Association of Realtors:

No seller can require that the buyer purchase title insurance from any particular title insurance company. This rule pertains to transactions involving a federally-related mortgage loan for one-to-four residential units as defined under the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. section 2608). Although this is a well-established rule under RESPA, it bears repeating given the recent upsurge in REO transactions.

REO transactions are not exempt from RESPA requirements:

If an REO lender chooses the title insurance company, as is often the case, it cannot require directly or indirectly, as a condition to selling the property, that the buyer purchase the title insurance policy. An REO lender that violates this RESPA requirement can be, among other things, held liable to the buyer in the amount equal to three times all charges made for such title insurance. Moreover, anyone who believes that RESPA has been violated may file a complaint (and may request confidentiality) to the U.S. Department of Housing and Urban Development (HUD).

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Last Week In Review

Posted on January 13, 2012 by Deborah
Last Week in Review
“Workin’ nine to five. What a way to make a livin.’”sings Dolly Parton. And with last week’s Jobs Report showing that unemployment has reached three-year lows, that’s something more people have been able to do lately. Read on to learn more about what’s happening in the labor market…and with home loan rates.On Friday, the Labor Department reported that 200,000 jobs were created in December, with 212,000 private job gains offsetting modest losses in government jobs. Adding to the positive spin of the report was the Unemployment Rate falling to 8.5% from a previously reported and upwardly revised 8.7% reading.While people being removed from the labor force are skewing this unemployment number to some degree, it’s important to note that the U-6 unemployment rate dropped a few ticks as well, to 15.2%. This number includes ALL unemployed individuals, including those “marginally attached” to the labor force, who are either ‘discouraged’ and haven’t sought work recently, as well as those folks working part-time who really desire full-time jobs.Overall the Jobs Report was a modestly positive reading on the labor market. We still have 5.6 million people unemployed for 27 weeks or more, and that number is little changed this month. But the big takeaway today is that the trend is improving.The other big takeaway is that bad news out of Europe helped balance out the good Jobs news here at home…allowing Bonds and home loan rates to recover from their initial negative reaction to the Labor Department’s report. The Euro is continuing to be weighed down by rising concern on member countries’ ability to get their deficits in order and their debt in manageable position.The bottom line is that the problems in the Eurozone are vast, complicated, and without easy solutions…so it will take a very long time for clear resolution. And during times of global uncertainty, money will flow into the relative safe haven of the US Dollar and US Bonds – including Mortgage Bonds, which home loan rates are tied to. This means that home loan rates should continue in their sideways trend and remain near historic lows, making now a great time to purchase or refinance a home.

 

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What Is A Lis Pendens?

Posted on January 12, 2012 by Deborah

What Is Lis Pendens?

A lis pendens literally means that litigation is pending. It tells the public that a lawsuit affecting the property is in progress and that any judgment awarded in that legal action will have priority as of the date of the lis pendens. Some lawyers file a lis pendens automatically when they file a suit affecting title to real estate. The lis pendens creates a cloud on the title and can prevent a potential sale of the property from taking place. A property owner’s first remedy, if a lis pendens is found, is to post a bond. If the court determines that the lis pendens was filed in bad faith, or that it does not affect title or possession to the property, then the court may expunge the lis pendens without the posting of a bond. You can take title subject to the lis pendens, but you would risk possible future judgments against the property. If a lis pendens exists it should be found in the preliminary report together with the liens and easements.

Read through the Preliminary Report (PR) carefully to determine which liens or items can stay on the property and which items must be paid or settled prior to closing. Once closed, the items not taken care of will remain on the property.

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Money Saving Tip—Move Your Money From A Big Bank To A Credit Union

Posted on January 9, 2012 by Deborah

 

I like to save money—in fact, since the economy has taken a downturn, I have made it a goal of mine—to see how much money I can save (on things I thought I could NEVER do without—- like the latest suede boots) and deposit into a Roth IRA or other retirement account. Last year I fully contributed to my Roth IRA without making anymore money than the year before! Success! Always up for a challenge, I was stoked.

I wrote this blog post about how to cut corners and save money, and it has some great painless ways to do so—-if it’s not painless, then count me out.

I recently decided to move my money from a big bank to San Diego County Credit Union. No need to say which big bank, but it was a moral choice as well as a financial decision.

Internet Bill Pay: I have been paying my bills online for 14+ years. I love this feature and it saves me time and makes paying bills a snap. However, with the big banks, when you pay a bill and it is a “paper check”— not an EFT (electronic funds transfer)  your funds are withdrawn on the day you pay. There is a 5 day lag time with paper checks to account for mailing. Thus if you used Bill Pay to pay a bill of $200 on 1/5  that was due on 1/10 and it was in the form of a paper check, the funds would be withdrawn on 1/5.  At SDCCU, funds are not withdrawn until the day you want the vendor to receive payment . So this $200 would stay in your account for another 5 days.

Why should I let the big banks float my money for 5 days, when indeed that extra 5 days will give me some breathing room and flexibility -sometimes the rents in my Property Management business are received a few days after the 1st.

This is not the only benefit. I have found SDCCU customer service to far outweigh the big banks, and check deposits are available immediately, instead of waiting 2 business days for them to clear.

Look into moving your money to take advantage of other benefits San Diego County Credit Union offers you!

 

 

 

 

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City Heights: Investing in Metro San Diego Properties

Posted on January 6, 2012 by Deborah

In the early 2000′s the best investments were multi-unit properties: 2 units or above. A single family home was not considered to be an investor’s arena. Why? Price too high to even approach a “break-even” point with a modest (10%-20%) down payment. Sure, ok to buy for future appreciation and tax shelter, but for the most part single family homes were not the arena of the small investor in San Diego, CA.

The San Diego income property market in some zip codes has changed all that. One area that has been hit exceedingly hard by the sub-prime disaster has been “City Heights” thus prices are really low. A densely packed multi-ethnic area of single family homes and small condo buildings, City Heights has been gentrifying rapidly. There is a huge mix of housing options: single family, condo, rental apts. And from low-end to (although I would not call it high-end) nice urban digs, close to downtown (5-10 minute drive) and city services (public transportation). City Heights also has one other benefit going for it: the benefit of a “coastal climate” with cool ocean breezes much of the time. Just a few miles inland and you can see temperature differences of 10-15 degrees. This a HUGE benefit during Fall in San Diego….and it’s a bonus!

I manage a property for an out of state owner. It is a clean house, 3BR 1.5 BA on a small lot
of land and I woud classify it in reasonable condition. There is a lovely family room w/fireplace, and private entrance (think Granny, roommates, teens).The front yard is a small enclosed area with some fruit trees and parking for 3 cars.The house is set far back from the street. The lot is non-existent, but that translates into no upkeep.

OK let’s talk monthly numbers. At $170K present market value the down payment is $20K (10% down and 3K closing costs).

P & I =$848 (5.5%)

Taxes =$156.

Insurance =$50.

Maintenance =$50

Basic Expenses = $1104.00

The rent is $1350. That would bring the cash flow to $246 /month.But for argument sake, let’s say the house breaks even the first year, investing the $246 back into the house for new paint/repairs/upgrades. You would now have a single family home in an urban market in San Diego for $20K down, and you could ride the next wave of appreciation with not a care in the world. Oh and did I mention I had 12 calls on this rental the first week? And that rents usually go up after the first year? This is a great start in City Heights for the new investor in San Diego income property.

Seems like a “No Brainer” to me.

 

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San Diego Neighborhoods

Posted on January 5, 2012 by Deborah

An afternoon in Normal Heights

Do you love used bookstores? Interesting coffee shops? Then take a drive over to this hip and interesting part of metro San Diego. Many folks just pass by it on their way to Hillcrest, but it has developed into a fun destination with lots to do. The following is a great way to spend a quiet afternoon in Normal Heights.

Burgett Books and Collectible in Normal Heights  3287 Adams Ave. San Diego, CA 92116

I can’t say enough about this bookstore. They have books, magazines, memorabilia and old photos. There are comfy chairs and stools to sit on and you can stay for hours and read. There is a special “paperback” room where most titles are a dollar or two. Outside they have a mobile book shelf where once the owner gave me a free book! They also buy your old books, but they are rather discerning about what they will pay for. They will take most books for free.

Lestat’s 3343 Adams Ave. San Diego, CA 92116

Now if all that reading and searching for books has left you depleted, head over to Lestat’s, a block away on Adams. You will find wonderful coffee drinks and snacks in this Bohemian coffee shop. Comfy chairs, unusual couches and tables adorn the tiny space, but there is also outside seating. Check out the artwork and jewelry by local artisans. Lestat’s is also a well known neighborhood venue for local talents and there is entertainment nightly.Lestats.com

Normal Heights is a “mixed bag” neighborhood of single family homes, apts. and condos. It is sandwiched between “leafy” Kensington and “hip” University Heights. It is multi-cultural and diverse as well as conveniently located near the 805 and the 15. Adams Ave. is the backbone of Normal Heights, and it is lined with ethnic restaurants and antique stores. Currently, a condo can be bought for as low as $60K-$75K, and single family homes start at $250K. Normal Heights has properties called “2 on 1′s which are 2 houses on one lot…..a great way to get into the single family market and have a rental income to supplement your expenses.

** note: sadly, Burgett Books has gone out of business

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A little piece of the Caribbean in the College Area, San Diego CA

Posted on January 4, 2012 by Deborah

 

Do you prefer eating at local ethnic eateries in San Diego as opposed to large impersonal restaurants? Being from the east coast, I am on a mission to search them out. Their numbers have increased in San Diego lately, while more and more people are pursuing the dream of owning their own businesses.

LAYLAH’S is one such place. Owner Lilia and her husband have been thinking about  their own restaurant for many years.

Located at 5712 El Cajon Blvd. in the College Area,not far from San Diego State University (SDSU), LAYLAH’S is a little gem, smack dab in the midst of a very non-descript block of store fronts. You can’t possibly miss the colorful signs on the exterior of the building!

GROCERY SECTION

When you enter LAYLAH’S, there are 2 rooms. One is a small grocery store on the right, stocked with delicacies, fruits and spices for making authentic Jamaican food.

FRESH PINEAPPLES

 On the left is a small sit-down restaurant. Decorated in true Jamaican style with handpainted murals and Reggae music in the background, this was as close to a true “Jamaican” experience as one can get in San Diego. I felt like I had entered a roadside eatery in Negril or Kingston. I must warn you about the hot sauce, 2 bottles on each table….it is HOT………..SSSSSSssssssssssssssssssss

 

  Wall Mural                                 HOT

The owners are a married couple, and I spoke to Lilia, the wife. The recipes are straight out of Jamaica: Miss Pearly’s jerk chicken, and even patties and bakery items from an authentic Jamaican Bakery in L.A. But kudos to the chefs, Baba and Devon for delivering a truly authentic meal:I had curried goat, rice and beans, fried plantains and vegetables. Prices are very reasonable. I had quite a large meal (they call it Medium) for around $8.

COOKS:Baba and Devon

Jamaican Patties-Meat or Vegetarian!

I love Jamaican food, and this is one of the most authentic meals I have ever had in San Diego. The place was clean and bright, the owners pleasant, the Reggae Music was loud and cheerful and the food outstanding.I will be back.

Come down to Laylah’s in the College Area near SDSU, San Diego, CA for some true Jamaican cuisine. Open until 8 p.m.

  Contact me for all your real estate needs

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Never A Better Time Than To Invest in Real Estate than———-NOW!

Posted on January 2, 2012 by Deborah

If you’re thinking about investing in a rental property, experts say low home
prices combined with low interest rates make this the best time in years to become a real-estate investor.What’s more, the real-estate market is starting to recover: U.S. houses lost $489 billion in value during the first 11 months of 2009, but that was significantly lower than the $3.6 trillion lost during 2008, according to real-estate website Zillow.com.

“We haven’t seen home prices this low in so many years, coupled with the rates being so low,” says Jill Sjolin, an agent with Windermere Real Estate in Woodinville, Wash., who specializes in investment properties. “When the money is cheap to borrow and the houses are cheap to buy, it’s absolutely the best time to invest.”

While the timing may be right, these five tips can help first-time investors take advantage of what might be the opportunity of a lifetime.

Know your options. Since not all investment properties are the same, it’s important to determine what type of property fits your strategy, says Harrison Merrill, chief executive officer of Merrill Trust Group, a real-estate investment company based in Atlanta. Do you want to become a landlord, or would you rather restore and resell properties? Are you interested in apartment buildings and other commercial real estate, or in buying land that can be developed? First-time real-estate investors may want to start with residential housing, since commercial real estate and land development still face challenging market conditions, Merrill says.

Partner with experience. First-time investors should find a real-estate agent experienced in investment property deals who can help you locate promising properties. “Look for relational brokers who expect to do business with you again and therefore are going to be much more careful with what they recommend,” Merrill says. A second option is to collaborate with a more experienced real-estate investor and close a deal together. In this economy, an experienced real-estate investor may be willing to work with you in exchange for the capital you can provide, giving you the opportunity to glean investment knowledge and experience firsthand, Merrill says.

Even if you don’t collaborate with other real-estate investors, talk to them about pitfalls they’ve experienced. “Go down to the general district court in your area and listen to some landlord/tenant cases so you can get a sense of what kind of challenges landlords face,” says Jeffrey Taylor, author of “The Landlord’s Kit.”

Look for the right location. If you buy a property with hopes of renting it out, location
is key. Homes in high-rent or highly populated areas are ideal; stay away from rural areas where there are fewer people and a small pool of potential renters, Sjolin suggests. Also, look for homes with multiple bedrooms and bathrooms in neighborhoods that have a low crime rate. “Renters gravitate to a safe neighborhood, and if they have kids, they will want a good school district,” Sjolin says. Also think about potential selling points for your property. If it’s near public transportation, shopping malls or other amenities, it will attract renters, as well as potential buyers if you decide to sell later. The more you have to offer, the more likely you are to please potential renters, Sjolin says.

Have capital lined up. Speak to potential lenders or even a financial planner about whether you have enough assets to handle the ups and downs that could come with investing. Even if you plan to rent out the property, count on paying the mortgage whenever there’s a vacancy. “If you can have about six months of mortgage payments saved up, it’s there if you need it, and you can use that money for repairs,” Sjolin says. Even if you’re planning to fix up a home and sell it, you may end up holding onto it for several months in the current market, Sjolin adds.

Build a supporting cast. Don’t wait until a rental property needs repairs to find someone to handle them. “Line up maintenance individuals who can take care of the different challenges that occur so you can simply call the person when a particular issue comes up,” Taylor says. Other sources you may want to have relationships with are an attorney to consult with on tenant issues, a property management firm to handle the day-to-day rental affairs and an accountant to help you understand the tax ramifications of investing. The more support you have, the better you will be able to handle the problems that come your way.

courtesy of Bankrate.com

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10 Pointers for the NEWBIE Landlord

Posted on January 1, 2012 by Deborah

Maybe you already own income property, or perhaps you are thinking of buying an investment for your retirement portfolio. Did you know the number one reason income properties do not succeed is due to poor management?

That’s right! So why not learn to “self-manage” and reap the rewards of extra cash flow and peace of mind. It really is not that difficult or time consuming. I wish I had someone tell me the following things before I became a Landlord 25+ years ago.

1.Treat your tenants fairly. They are paying your mortgage and it is because of them you are going to have a successful investment.

2.Never ask for rent. Everyone knows their rent is due on the first of the month, and asking for it just sets up a “Landlord as Beggar” scenario.

3.Always do credit checks. You never know who is hiding an eviction or worse.

4.Don’t micromanage your property. Or if you do, don’t make it obvious. No one wants to see a “nosey” landlord on a daily basis. It makes for animosity and distrust.

5.Accepting late rent even once without a late fee just because you are a nice guy sets up a bad precedent. After 2 late rents, I have it in my lease the tenant will be given a 30 day notice to leave.

6.Accepting dogs can be a disastrous decision. Not only can some dogs be noisy and bite, but some Insurance Companies do not allow some breeds and will not pay for a claim if there is an incident. You cannot imagine the problems many Landlords have from dogs. It’s just not worth it.

7.Be “friendly” with your tenants but never “friends”.

8.ALWAYS have tenant fill out a “Move-in Checklist”. This is the single best protection for you in case you have to go to court. Take photos if necessary.

9.Empower your tenants by allowing them to make some decisions. For example, I do not assign parking spots in one of my 4 plexes, I let them figure out amongst themselves who parks where.

10.Cats may not be your favorite animal, but 75% of the renting population has a feline. A cat cannot bite neighbors, is quiet and doesn’t chew wood work. An extra pet deposit can be taken on top of the security deposit.

 

                                                    

 

 

 

 

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The Best N.Y. Cheesecake You Have EVER Had—-

Posted on December 30, 2011 by Deborah

Yeah I know —this has nothing to do with Real Estate—but it’s the best darned cheescake recipe around!

Deborah’s Cheesecake Recipe

5 8 oz. pkg. cream cheese

1 ½ cups sugar

3 tbsp. Flour

¼ tsp. Vanilla

5 eggs

2 egg yolks

¼ cup heavy cream

 Graham cracker crust

Preheat oven to 500 degrees. Combine cheese, sugar, flour and vanilla. Beat to blend at high speed. Beat in eggs/yolks one at a time. Add cream, beating just until well combined. Pour into 10” spring form pan that you have filled with a graham cracker crust. (do not use any other type pan). Bake 10 minutes. Reduce temp. to 250 degrees and bake 1 more hour. Let cool in pan.

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