Why RE Brokers Are Still Alive and Kicking

September 30, 2013 Owner

Getting back to the office after this morning’s great Santa Rosa Chapter of Realtors Marketing Meeting, I came across the below Pacific Union’s article from a few months ago called “Why Real Estate Brokers Are Alive and Kicking”, and it rings so true:

“So, why haven’t the Zillows and Redfins of the world killed off real estate brokers? Because they can’t replace what makes our professionals essential to the transaction: the market mastery, the in-the-trenches experience, the advice and recommendations that take decades to develop.

“They can’t match the combination of deep knowledge, insight, and instinct that allow our people to identify a client’s dream home – and ultimately make that client’s dreams a reality.

“The Internet is great for research. But search algorithms, virtual tours, and robots just can’t replace professional expertise.”

Ever since I started our real estate and mortgage company with my wife 25+ years ago we have striven to be true professionals, honest expertise based on continuing education and regular market updates and networking so we were up-to-date on everything possible we could be.

All for the sake of our current and potential hard money and real estate customers!

Best, Broker

Owner/Hard Money Broker – The Guy in the White Hat

Original link to Pacific Union Bay Area Real Estate Blog, “Why Real Estate Brokers Are Alive and Kicking” March 19, 2013:

http://blog.pacunion.com/why-real-estate-brokers-are-alive-and-kicking/

Owner- the Guy in the White Hat – is a CA DRE Broker with 25 years of experience in real estate and lending. His phone number is (707) 523-2099. See website @ www.sunpacmortgage.com.

Top 10 Reasons To Use Hard Money

August 30, 2013 Owner

LENDER’S VIEWPOINT
By Broker, Owner

Having watched a lot of David Letterman Late Night shows, I realized just as he has his “Top 10 reasons”, there are Top 10 Reasons To Use Hard Money

Need I say more…

#10. You had a recent Bankruptcy.
#9. You are currently in a bankruptcy.
#8. You had a short sale not too long ago..
#7. You had a foreclosure yesterday.
#6. You have been in a bankruptcy for a year, had 2 foreclosures of rental properties in the last 12 months and you are currently short selling your home (true story!!).
#5. Your home loan was just declined by the bank that approved you a month earlier for something on your credit report that was there from the start.
#4. You have written 11 [unaccepted] offers and now have a new best friend in your Realtor.
#3. 3 words: “Fourteen” – “Day” – “Escrow”! (I just did one in 7 days. My record is 5, and I would like the challenge to do it quicker!!)
#2. You are the “perfect loan” for a bank. Perfect credit, perfect income, big down payment. But you want to buy a dumpy property and fix it up. Banks hate dumpy properties.
And the #1 Reason… As a Hard Money Lender for 25 years – I say YES when others say no!

Call me with your scenarios and let’s see how I can help you.

Owner- the Guy in the White Hat – is a CA DRE Broker with 25 years of experience in real estate and lending. His phone number is (707) 523-2099. See website @ www.sunpacmortgage.com.

Selling a House? Don’t Overprice It

July 22, 2013 Owner

Hello fellow Realtors, Lenders and other friends;

There was a really good article released by The KCM Blog on July 15^th that goes right along with our message in today’s video: how to increase a Buyer’s capability to purchase your particular listing, in today’s market.
We have included the full article along with an original link to it, below. Do make sure to read all the way through. Smart facts and strategies to keeping more Buyers and Sellers in the game, right now!

Best, Broker & Lynn

Owners/Broker–The Guy in the White Hat & Realtor–Flipper Chick

Sun Pacific Mortgage & Real Estate

Family owned and operated in Sonoma County since 1988. Your Hard Money Lender!

The KCM Blog – Selling a House? Don’t Overprice It

http://www.kcmblog.com/2013/07/15/selling-a-house-dont-overprice-it/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29

Hires 6 Hello Fellow Realtors, Lenders And Other Friends; There is no doubt that the housing market is coming back nicely. What, if anything, could slow down the current momentum? We believe it may be sellers’ over exuberance when it comes to pricing. There is little doubt that house prices have appreciated over the last twelve months in most regions of the country. However, with both the inventory of homes for sale and interest rates increasing, we have to be careful to not over judge what the market can bare.

Trulia just reported that asking prices have jumped dramatically and the increase is accelerating:

Year-Over-Year prices jumped 10.7%
Quarter-Over-Quarter prices jumped 4.1% (16.4% annualized)
Month-Over-Month prices jumped 1.5% (18% annualized)

No expert is expecting home prices to shoot up 18% in the next twelve months. If anything, price appreciation may slow as rates and inventories increase. Investors will begin to slow their purchases and the first-time buyers expected to take their place will be working within a pre-set budget in many cases.

Buyers’ Purchasing Power

Let’s look at an example: A young couple is looking for a home and have predetermined that their budget will only allow them to spend $1,000 a month on a mortgage. At today’s mortgage rate of 4.5%, they could afford a $200,000 mortgage ($1,013 principal & interest). However, if rates jump to 5%, they would have to lower their mortgage amount to $190,000 in order to keep their monthly payment where they need it ($1,020). At 5.5%, the mortgage would need to be no more than $180,000 ($1,022).

The Impact on Prices

This decrease in buyers’ purchasing power will have an impact on home values going forward. We do not believe it will cause a decrease in prices. However, we do believe it will likely cause current rates of appreciation to slow.

If you are thinking about selling your home, don’t get carried away with current headlines about home price increases that have taken place over the last twelve months. Instead, call a local real estate professional. They will be best prepared to explain where prices are headed over the next six months.

Selling a House? Don’t Overprice It – Posted: 15 Jul 2013 04:00 AM PDT

Original link: http://www.kcmblog.com/2013/07/15/selling-a-house-dont-overprice-it/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29

A Realtor’s Strong Right Arm

June 28, 2013 Owner

LENDER’S VIEWPOINT
by Broker, Owner

As you have seen, the housing market values are only going up, but still the current prices are too good to miss out on. And despite news about rates increasing, the interest rates are still within the range of 50 year lows!

Freddie Mac has reported that the rates for 30-year fixed mortgages rose about ½ percent in the past weeks. These rates aren’t expected to rise more than ½ percent by this same time next year, as mentioned by National Association of Realtors, the Mortgage Bankers Association and Fannie Mae.

The bottom in home prices and interest rates has passed. Waiting no longer makes sense.

For renters, their rents will go up. If rents go up in the next 30 years at the same rate they did over the prior 30 years then someone renting today for $1,600 will be paying $4,496 in 30 years. Why rent when you could buy?

Don’t be 30 years older, paying an outrageous rent and no accumulated wealth because you paid your landlords mortgage for all that time. An increase in rates will obviously impact each home owner’s monthly mortgage payment so if you wait, you will end up just having to pay more!

I have saved the bacon for agents and conventional lenders on multiple transactions so far this year, closing several of them in a week. If turned down elsewhere, I most likely can help if they have a decent down payment or other equity to work with.

Basically considered “all cash”, such loans are extra strong and can be used to purchase or refinance dump property, bad credit borrower, irregular income borrower, large cash out borrower, Bridge loans, etc.

Home ownership is not only desirable, it is the correct financial decision to make right now.

Best,

Broker

Owner- the Guy in the White Hat – is a CA DRE Broker with 25 years of experience in real estate and lending throughout Northern California. His phone number is (707) 523-2099. See regularly updated website @ www.sunpacmortgage.com.

Sweetening The Current Market and Rates

June 17, 2013 Owner

Do these seem like lazy days of summer or what! School graduations, parties for the grads, vacation trips, heat that’s too hot. Perfect lazy days!

Personally I am ready to get roaring again. I have 2 listings to sell (1411 Carlos Court and 5671 Monte Verde Dr. – hint hint) and want them to sell TODAY.

I’m pulling myself up by the boot straps and getting to work. Here are some “blogs” that got me going – because they have some good, true info for potential home buyers and they just make sense…..

Otto Kobler, Branch Manager of Summit Funding Mortgage Bankers in Santa Rosa sent out an email on current rates:

“RATES as of JUNE 17, 2013- SLIGHTLY DOWN for the week (Sweet!!). Finally a week that ended with rates a little better than the previous. Wow, that was six solid weeks of rates moving up. Hopefully rates pause and hang out at this rate for a long time.”

I also recently read this article on www.KCMBlog.com and thought you might find it interesting:

Buying a House: Is Now the Time?
http://www.kcmblog.com/2013/06/10/buying-a-house-is-now-the-time/

The real estate community is often criticized for always seeming to have a Pollyanna attitude
about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing
more than a scare tactic with the sole purpose of creating more commissions for the industry.
Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the
current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home
values have risen over 10% in the last year. If we look at Freddie Mac’s.
Weekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from
3.67% to 3.91% during that same period.

The table below compares the cost of the same exact house over the last twelve months:

We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also
upgrading their projections as the housing market is showing strong signs of recovering.

Regarding interest rates, the 30 year mortgage rate has soared by over a half point already
this year and many believe that the increases will continue. Even those trying to be the voice
of reason on this issue are projecting higher rates.

For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said: “Rates are
unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be
giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.

Best, Lynn

Flipping properties in North Bay….when done smartly it’s good for everyone.

June 7, 2013 Owner

Flipping properties in North Bay….when done smartly it’s good for everyone.

Having done many loans in the past and currently for flippers, I am with Rick Laws and Patrick Barber on what they say (see below Pacific Union Bay Area Real Estate Blog of June 6 2013 “San Francisco, Santa Rosa Metro Areas Ranked Among Top 25 Spots for Home Flipping”). The price ranges for flippers has increased and the luster being added back into neighborhoods is really good, I say.

Blog with full article: http://blog.pacunion.com/sf-santa-rosa-metro-areas-home-flipping/#disqus_thread

My wife, Lynn, as the “Flipper Chick” Realtor she is really familiar with the flip market right now. She definitely is working extra hard to find the best properties for her client so he can fix them up well enough to pull in some profit. Santa Rosa’s values are moving up so fast that it’s a constant gamble.

I always enjoy hearing what neighbors say about the run-down houses that get fixed up. They only increase the value of their own house! Below was a recent neighbor who emailed Lynn about her client’s/flipper’s good work:

“What a beautiful flip on Monte Verde. I live a few doors down and it has been fun to see this property transformed in a short period of time. What a GREAT job. Please tell the owner the neighborhood appreciates the change. Enjoy this beautiful day.” Dorothy

If you have hard workers who take an honest passion in their job of fixing up a house, it will be good quality and they deserve any profit they make! Which is their living’s work.

Best, Broker

Owner is Co-Owner and CA DRE Broker known as “The Guy in the White Hat” of Sun Pacific Mortgage & Real Estate – Your Northern CA Hard Money Lender since 1988. www.sunpacmortgage.com. DRE license #01464899/NMLS #360993

Hard Money Loans From The Guy in the White Hat!

May 2, 2013 Owner

Hello again everyone;

I wanted to let each of you know that I have many investors available to fund local loans, throughout Sonoma County and the contiguous counties.

It’s been a really busy month for hard money loans and I know with the current real estate market it isn’t going to quiet down, which is fine with me.

I like being able to work with many of you, helping your clients get their deal closed!

Below are recent hard money loans funded through my office. I hope it gives you a better idea of how I can service you and/or your clients with hard money loans.

Best,

Broker

RECENT HARD MONEY LOANS

Martinez, California – Refinance

Hard Money Loan of $280,000 for 60 months @ 8.5% interest only! Borrower has owned this rental property for 12 years. It’s a 4/2 and 1,430 sq. ft. with a 7,000 sq. ft. lot. Based on comps has a loan to value of 53.8%.

Healdsburg, California – RUSH loan for owner occupied purchase

Hard Money Loan of $220,000 for 85 months @ 9.25% interest only! Loan to value is 36.67%. The home is 3 bed/2 bath and 1,900 sq. ft. on a 19,119 sq. ft. lot (.44 acre) that was just completed. Good looking home.

Mountain House, California – Owner occupied purchase

Hard Money Loan of $150,000 for 85 months @ 10% interest only. Loan to value based recent appraisal is 40.5%. The home is 4 bedroom, 2.5 bath of 2,791 sq. ft. on a 6,098 sq. ft. lot. Very nice home. Good loan to value.

Oakley, California – Owner occupied purchase

Hard Money Loan of $245,000 for 85 months @ 10.25% interest only! Loan to value is 70%. The home is 4 bed/3 bath and 3,486 sq. ft. on an 8,838 sq. ft. lot that was built in 2007. Nice looking home.

Oakland, California – RUSH loan for non-owner purchase

Hard Money Loan of $93,750 for 24 months @ 12% interest only. Purchase price is $125,000. Loan to value is 75%. This is a duplex. Units are each 2 bed/2 bath of 788 sq. ft. on 4,791 sq. ft. lot built in 1946. Buyer is a busy realtor. This is my 5^th loan to her.

Santa Rosa, California – Owner occupied purchase

Hard Money Loan of $80,000 for 85 months (@ 12.0% interest only. Loan to value of 70%. The unit is a 2/1 at 816 sq. ft. built in 1959.

Brokerville, California – Refinance

Hard Money Loan of $50,000 for 85 months @ 8.0% interest only! This is a cash-out refinance for a property that was purchased all cash in March 2012 for $140,000. Loan is 35.72%. The home is 2 bed/1 bath and 908 sq. ft. on a 6,534 sq. ft. lot built in 1950.

Borrower stated they did spend $45,000 to $50,000 remodeling the home.

Stockton, California – Non-owner purchase

Hard Money Loan of $53,000 for 36 months @ 13.0% interest only. Loan to value is 70%. This is a short sale that is finally happening. This is a 4 plex. Rents will be from $750 to $900. Buyer has been a real estate agent for almost 4 years. This will be the 4^th loan I have done for her. She has decent credit and great income.

Our loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

Owner Occupied and Investor financing
FAST private money purchase financing Sonoma County and contiguous Counties
FICO is not a factor
Up to 75% loan-to-value – Case by case basis
Lower rates with Good Compensating Factors– Case by case basis
Loan amounts from $40,000 – $2 million
Fast refinancing.

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

CALL FOREST – The Guy in the White Hat – at (707) 523-2099;

Or email him through the website at: www.sunpacmortgage.com

A California Private Money Lender You Want To Do Business With

April 5, 2013 Owner

The below article (reprinted with permission) is an exact description of the relevance and importance of Private Money Lenders here in Sonoma County, in the USA and probably planet wide.

If we left it to the bailed out banks, zero money would have been lent during the years of the most recent real estate debacle.

The dust is finally settling on who remains standing in the real estate lending arena. It really boils down to the “A” lenders who do the 30 year fixed loans and the Private Money Lenders. There are no more “B” and “C” lenders. There is no subprime lending.

There is no World Savings with their Quick Qualifiers and stated income programs.

After you take your shot with the “A” lender(s) and they say “NO”, you go straight to Private Money. These Lenders stand ready and willing to fuel the future of real estate in America today.

Article: TheNicheReport “PRIVATE MONEY LENDERS HAVE FUELED THE REAL ESTATE RECOVERY“ by Corey Curwick Dutton, a private money consultant for Private Money Utah. www.PrivateMoneyUtah.com

Best,

Owner

Owner/Broker – The Guy in the White Hat

Get California Hard Money Loans From This Posse

March 15, 2013 Owner

Below are recently funded loans through my office. I have been extremely busy with the many loans coming into our office, but don’t think this will put your loan on a back burner. Oh no, we give fast and friendly service to every single person!

Please take a look at these loans, to see if you have similar scenarios that I could possibly be of service to you. If you or someone you know has been turned down elsewhere for a real estate loan, don’t hesitate to contact me if there is any equity involved or some cash for the down payment.

No matter where you are in Northern California, when you think of Hard Money – big or small loans – think of The Guy in The White Hat at Sun Pacific Mortgage and Real Estate to fund that loan!

Best,
Broker

Funny and Informative Video: http://youtu.be/k5wcwytcWes

FUNDED RECENT HARD MONEY LOANS

Owner Occupied Purchase Loan: Lincoln, CA – $130,000 for 85 months @ 8.0% interest only. Purchase Price is $280,000. Loan to value is 46.4%. Home is a 2 bed/2 bath at 3,086 sq. ft. built in 1938 on almost 1/3 acre lot. This home sold for $630,000 on 8/2/2006!

Investment Property Loan: Earle Street, Santa Rosa –$140,250 for 85 months @ 11.5% interest only. Purchase Price is $187,000. Loan to value is 75%. The home is a 3 bed/1 bath at 1,037 sq. ft. on a 4,356 sq. ft. lot. Buyer has 15 years in the same line of work and she can easily afford the home.

Commercial Loan: Foothill Blvd, Calistoga –$400,000 at 12% interest only for 60 months. Appraised value as of 12/10/2012 is $930,000. Loan to value is 43%. Borrower has owned the property since 1991 and her parents owned it before that. 2 of the 3 units on the property are rented for a total of $8,000 monthly. She is currently under negotiations for a tenant for the 3^rd unit. The longest term tenant is an auto repair shop.

Owner Occupied Purchase Loan: Crockett, CA – $128,175 for 85 months @ 12.0% interest only. Purchase Price is $170,900. Property is 2 bed/1 bath at 1,309 sq. ft. The lot is 5,670 sq. ft. The Buyers have FICO scores in the 680+ range, very little debt, the husband has been on the same job for over 7 years and has great verifiable income.

Our loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

Owner Occupied and Investor financing
FAST private money purchase financing Sonoma County and contiguous Counties
FICO is not a factor
Up to 75% loan-to-value – Case by case basis
Lower rates with Good Compensating Factors– Case by case basis
Loan amounts from $40,000 – $2 million
Fast refinancing.

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

CALL FOREST – The Guy in the White Hat – at (707) 523-2099;

Or email him through the website at: www.sunpacmortgage.com

New Year – New Regulations Loan Structure in My Office

February 11, 2013 Owner

LENDER’S VIEWPOINT
by Broker, Owner

New Year – New Regulations Loan Structure in My Office

I want this article to be nothing but positive, because that is my attitude going in to this new year in the face of new regulations. A lot of new regulations. Tons of new regulations. More friggin’ regulations than you can shake a stick at. But I digress.

I just read that the new laws regarding loan originator compensation are 541 pages! Sorry, digressing again.

I only do Hard Money loans. They break out into 2 rough categories – Owner Occupied Principal Residence and Investor loans. Investor loans is the broader category because an investor is someone who is buying or refinancing something other than an owner occupied principal residence, be it land, commercial or mixed use property.

My strength is in loan amounts around $400,000 or less. I do larger loans on what I deem a case by case basis. I have gotten many, many loans over $400,000 done, but the real sweet spot with my investors is $400,000 and under.

Rates in my office for both owner occupied and investor loans vary according to the loan to value. The higher the loan to value the higher the rate. I will lend as high as 75% loan to value but more normally I lend to 70% loan to value. So the higher rates in my office will be at those LTVs or loan to values.

Credit can affect the rate a Buyer or Borrower gets. If it’s really bad and fresh stuff – like a recent short Sale, foreclosure or bankruptcy, it can affect the rate. Not always, but sometimes.

Income is now something the Feds have compelled us to look at for hard money, especially the owner occupied loans. Debt ratios need to be under about 50% or there needs to be enough disposable income after paying all monthly debts.

That’s pretty much the structure in my office. The complete line-up of available loan programs across the USA is a much shorter list than in years past. There are A paper loans for borrowers who have good credit scores and good verifiable income. And then there is Hard Money. There used to be a lot of in-between programs like subprime loans, B and C paper, etc. The in-betweens have virtually all gone away.

I can Pre-Approve someone in about 5 minutes and can write a Pre-Approved Letter right after doing the loan application. You can always call me and run your loan scenario by me. I pick up the phone and I am really great with emails.

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The KCM Blog – Selling a House? Don’t Overprice It

Buyers’ Purchasing Power

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