Why Invest in California Trust Deeds?

September 12, 2023 Ken Walker

The short answer to that question is wouldn’t you want your investment money to gain upwards of 12% or more interest? There are very few stocks or bonds these days paying such handsome interest.

What are trust deeds? Trust deeds (mortgages) are investments in a loan, secured by real estate, directly to the borrower. Rather than putting your money in a bank and having the bank make the real estate loan, private investors actually make the loan directly. The trust deed investment business is huge in California.

There are two ways to invest in trust deeds: One is through a mortgage fund (like a mutual fund), the other is by investing directly in trust deeds through a licensed mortgage broker.

With a hard-money mortgage fund, also known as private money, you are investing with many other shareholders in real estate for which you do not need to be directly responsible. Sounds good, right? Except, that just about every hard money mortgage fund in history has failed horribly during the regular real estate crashes that seem to hit every ten to fourteen years.

Sun Pacific Mortgage has been in the trust deed business in California for over 35 years. Our investors finance trust deeds directly through a legitimate mortgage broker. In this case, once the borrower and property are vetted and equity determined, the investor is directly lending to the actual borrower on a specific piece of property.

Then you make the monthly return on investment as the borrower makes their payments. If you are interested in participating in such an investment, reach out to Sun Pacific Mortgage via their website at www.Sunpacificmortgage.com or by phone at 707-523-2099 to find out more.

Are Higher Mortgages Here to Stay for the Foreseeable Future?

September 5, 2023 Ken Walker

An article in NerdWallet caught my attention recently. It stated that the era of low mortgage rates is over and embracing this reality will speed up owning a house that meets your needs.

Low rates were the norm for 11 years, as the 30-year mortgage remained below 5% from February 2011 to April 2022. Since that time, it has remained mostly above 5% averaging 6.72% in June 2023.

Some forecasters predict that rates will decline over the next 12 months, but they don’t foresee them dropping below 5% anytime soon. Buyers are tempted to be in denial, but the reality is higher rates are here to stay for the foreseeable future.

“People are still working through their five stages of grief on this mortgage rate stuff,” says Lisa Sturtevant, Chief Economist for Bright MLS, the real estate listing service for the mid-Atlantic region. “And I think you have to reach the stage of acceptance at some point that certainly rates aren’t going to come down to where we were back during 2020 and 2021.” (When the median 30-year rate was 2.99%.)

If you are ready to face the reality of the housing market today and don’t qualify for a conventional mortgage, consider a privately funded loan from family owned & operated Sun Pacific Mortgage. Call us at 707-523-2099 or find us at www.sunpacificmortgage.com.

North Bay Real Estate Statistic Comparing March 2021 to June 2023

August 8, 2023 Ken Walker

In the July 24, 2023 issue of the North Bay Business Journal, there were several charts comparing the state of real estate in four North Bay Counties: Napa, Solano, Marin & Sonoma, between March 2021 and June 2023.

While listings may be shrinking and the median days on the market may be lengthening, the median price of homes has maintained almost all the appreciation it acquired over the past two years.

NAPA

New Listings: Mar.2021=178, June 2023 =130
Total Listings: Mar.2021 =353, June 2023 =356
Median Sales Price: Mar.2021 =$1,359,000, June 2023 =$1,697,500
Median Days on Market: Mar.2021 =60, June 2023 =66

SOLANO

New Listings: Mar.’21-504, June ’23-388
Total Listings: Mar.’21-651, June ’23 823
Median Sales Price: Mar.’21-$521,975, June ’23-$626,000
Median Days on Market: Mar.’21-26, June ’23-37

MARIN

New Listings: Mar.2021 =356, June 2023 =264
Total Listings: Mar.2021 =466, June 2023 =543
Median Sales Price: Mar.2021 =$1,350,000, June 2023 =$1,425,500
Median Days of Market: Mar.2021 =41, June 2021 =53

SONOMA

New Listings: Mar.2021 =690, June 2023 =440
Total Listings: Mar.2021 =1104, June 2023 =1035
Median Sales Price: Mar. 2021 =$822,000, June 2023 =$1,124,000
Median Days on Market: Mar.2021 =42, June 2023 =47

Whether you are a potential home buyer or you are an investor looking for a solid real estate investment to grow your wealth, Sun Pacific Mortgage family team could be the perfect match for your needs.

As an Investor, you can co-invest or individually invest for higher returns, as high as 12% at times. We have been in business for over 3 decades now, offering private mortgages to those in need of fast mortgages and to borrowers who don’t qualify for a conventional loan because of a variety of reasons. Email through our website, give us a call at 707-523-2099 or find us at www.sunpacmortgage.com.

Hawaii Real Estate Trends – Getting Ahead

August 1, 2023 Ari Walker

With increasing environmental awareness and commitment to sustainability, we might see more eco-friendly building materials and energy-efficient home designs becoming popular in Hawaii.

Smart home technology and connected devices may become more widespread in homes across Hawaii, offering residents greater convenience, efficiency, and security.

With a continued focus on sustainable development, innovative architectural styles, and balanced growth, the Hawaii real estate market is undoubtedly set to maintain its position as a desirable and competitive landscape for years to come.

The current trends in the Hawaii real estate market include increasing home prices, low inventory, a high demand for properties, a shift towards remote work, and a growing interest in eco-friendly homes.

The highest demand in Hawaii real estate can be found in areas such as Honolulu, Oahu, Maui, and Kauai. These areas are popular due to their natural beauty, job opportunities, and a range of amenities. Additionally, remote workers are seeking properties in areas with good internet connectivity and close proximity to outdoor activities.

Single-family homes, luxury properties with ocean views or beach access, and eco-friendly homes with sustainable features are among the most sought-after property types in the Hawaii real estate market. Remote workers and families are also looking for properties with ample living and outdoor space, updated home office areas, and proximity to schools, shopping centers, and recreational areas.

So, if you want to get a step up in the Hawaii real estate market, consider a Private Money loan which is fast, alternative, forgiving, has no credit requirements, no DTI requirements and can work with difficult to prove income. Call Sun Pacific Mortgage & Real Estate at 707-523-2099 or reach out via our website as www.Sunpacificmortgage.com

Some Rules of Real Estate Investing

July 25, 2023 Ken Walker

Real estate is the only investment where you can actually borrow other people’s money to purchase and own an income producing property. As long as you have positive cash flow overall in your portfolio, you can buy as much income property as you can. Leverage is a very powerful concept and real estate is probably the best place to leverage your investment capital because it’s a hard asset while fulfilling a need called housing. The following are some hard-earned rules presented by Marco Santerelli of Norada Real Estate, that we felt were informative enough to share:

Be informed regarding the market. There is a lot of truth in the saying, “The more you learn, the more you earn.”
Set investment goals, not wishes. You are far more likely to achieve financial independence if you write down clear, specific, and detailed goals than not doing anything at all.
Never speculate. Always invest with a long-term perspective in mind.
Don’t chase appreciation. It will happen in the right market and the right neighborhood because real estate is a hard asset made up of commodities and over time it will appreciate because of inflation.
Keep in mind that the equity growth in the property will always far surpass the cash flow.
Don’t be married to any particular market. Each and every market is local and will move up and down completely independently of one another due to various local factors.
Always first choose the market, the city, the town that you want to focus on based on the health of that market and the local economy.
It [can be] wise to have a management company handle your real estate investments. It can be a tough, full-time job and your time is more valuable and should be spent on things more important to you.

If you are looking for a pathway to passive real estate investing, give Sun Pacific Mortgage a call. We offer trust deeds in well vetted properties in California and Hawaii. As little as $100,000 can have your earning interest as high as 12% or higher.

You can find us at www.sunpacificmortgage.com or call us at 707-523-2099.

Sonoma County Real Estate Trends – End of 2nd Quarter 2023

July 18, 2023 Ari Walker

Surprisingly enough, median home sales prices have been climbing – especially over the past couple months of Quarter 2. They are presently only a little below the peak prices hit in the spring of 2022.

The number of new listings remains the lowest in 20 years, a victim of the “mortgage lock-in” effect. With many homeowners enjoying rates below 3%, they are not looking to sell their homes only to buy property with double the mortgage rate.

The average number of days a property stays on the market is the lowest we have seen in 20 years – a phenomenon expected with so few homes available on the market.

With so few homes available, homes have continued to sell above asking. With the lowest inventory available in years, finding a home has become incredibly difficult for buyers.

The 3-month rolling average for a single-family residence in Sonoma County is $840,000. This number reflects the smallest year-over-year decline in the Bay Area.

From all the information we are getting from the experts, don’t expect the mortgage rates to decrease any time soon. In fact, most of the experts are forecasting a steady increase in the rates. For those buyers who are “waiting out” this rate tsunami, you might want to jump in before it gets even worse.

If you have tried and failed to obtain a mortgage for any reason, or need a faster home loan to beat out the other multiple offers, or don’t want to sell your current house prior to buying a new home, consider alternative financing with a privately funded loan. At Sun Pacific Mortgage we offer several programs to borrowers who need to purchase, refinance, or need bridge loans. Give us a call at 707-523-2099 or find us at www.sunpacmortgage.com.

Home Prices in the San Francisco Have Begun to Rise Again

July 11, 2023 Ken Walker

Housing and financial markets have always run in cycles, both economic and psychological, but ever since the days of the Gold Rush the Bay Area has always rebounded.

Patrick Carlisle, chief market analyst at real estate firm Compass, stated that the Bay Area has seen four major booms over the last four decades each marked by a period of “irrational exuberance”, or skyrocketing prices with seemingly no end in sight, and then followed by a market correction.

April, May, and June are typically the busy season for real estate. True to form, agents and economists have seen a slight uptick in the past couple of months as we recover from the slump over the last year that followed the huge boom in home prices during the pandemic.

There has been a definite uptick in buyer activity, open houses and offers. Savvy buyers are looking to lock in a lower price point for their home now since they can always refinance their mortgage rates later, a smart strategy of experienced buyers.

Some Bay Area counties are rebounding faster than others. Solano, Marin, Sonoma, and Napa counties each saw an increase in home values over the last month, while Santa Clara, San Francisco, San Mateo, Alameda, and Contra Costa saw a slight decline.

San Francisco has seen a larger decline than the surrounding counties due to the work-from-home trend of the pandemic. Downtown San Francico is the weakest market within the city, but it provides an opportunity to those who believe that it will ultimately rebound.

So, real estate remains a smart investment for homeowners and investors alike. If you are looking to refinance or purchase and need faster financing or cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099, or reach out via our website.

The Sacramento Housing Market

July 6, 2023 Ari Walker

The Sacramento housing market is still very competitive. Homes in Sacramento can receive 4 offers on average and sell in around 10 days. The median sale price of a home in the area was $490,000 last month, down 7.5% since last year.

Many homes are still getting multiple offers, some with waived contingencies. The average home sells for about 1% above list price while hot homes can sell for about 5% above list price and go pending in around 6 days.

The Sacramento housing market has been a topic of great interest for homeowners, real estate agents, and investors alike. As with most of California, Sacramento is currently a seller’s market. The market forecast indicates a projected increase of 0.8% in home values over the next year, suggesting a positive trend soon. The side benefit of the relatively affordable Sacramento real estate market and increasing demand is that any real estate investment there will see significant appreciation.

One of the reasons the Sacramento market is much healthier than other areas is due to its true income mix. It offers real estate investment investors more options than luxury homes and densely packed affordable units, the only types of housing you see built in San Francisco.

If you are interested in purchasing or refinancing a property in Sacramento, or anywhere in California or Hawaii for that matter, but do not qualify for a conventional loan or just need some fast & flexible financing, consider a private mortgage with Sun Pacific Mortgage. Over the past 35 years we have helped over 10,000 borrowers get financing when everyone else turned them down. You can reach us at 707-523-2099 or find us at www.sunpacificmortgage.com.

Is Hawaii Real Estate a Good Investment?

June 20, 2023 Ken Walker

Investing in real estate can be like playing Monopoly: buy a property; generate rental income property; buy more properties; hedge against inflation; and see the cash flow. Real estate is a great investment for a variety of reasons, and historically Hawaii real estate has been an excellent portfolio choice.

What are the reasons anyone should invest in Hawaii real estate? Chief among the reasons is appreciation. While the Hawaii real estate market does have its ups and downs, historically it has always had steady appreciation, and the downs are not as drastic as in the U.S. Mainland. Since 1972, the long-term average annual appreciation has hovered around 6% for a single-family home and 5.4% for a condo.

In recent years, average sales prices for Hawaii homes have continued to increase. Oahu median sales prices have increased year-over-year around 70% of the time since 1985.

If you find yourselves sitting on a substantial amount of equity because of the large appreciation California homes have experienced over the past several years, consider tapping into it to invest in Hawaii real estate. Hawaii real estate is typically a safe and rewarding investment. Now, with Sun Pacific Mortgage, you can be an investor in Hawaii real estate without the hassle of being an “absentee landlord”.

Interested? Call 707-523-2099 or find us at www.sunpacificmortgage.com.

Looking to Buy a House on Maui?

June 13, 2023 Ari Walker

Maui offers tons of real estate variety for those looking to buy a piece of Maui real estate. Upcountry Maui real estate is located at elevations between 1,000 and 4,000 feet above sea level where the air is cooler. North Shore puts you right in the heart of one of the world’s favorite surfing spots, and Kihei, Makena, and Wailea offer plenty of tourism attractions along with Lahaina, Ka’anapali and Wailuku.

There is no major city in Maui. This Valley Isle is known for its unique beauty, incredible beaches, charming small towns, and some of the best surfing destinations in the world. Its rich farming tradition provides an elevated culinary experience as well.

Maui is the second largest island in Hawaii and although some countries saw a drop in home prices at the start of the new year, Maui County was the only one in the state to exceed a $1million median for single-family homes.

The median sales price for Maui County single-family homes in January was $1.2 million, a 0.4% increase from the same month last year.

If you are considering a primary home, a second home or an investment property in Maui, give Sun Pacific Mortgage & Real Estate a call at 707-523-2099 to find out the many benefits of Private Money loans.

These fast and unique mortgages are based on the equity of the home being purchased, not on your credit scores. We offer mortgages to those borrowers who find it difficult to prove their income. Additionally, we close our loans in 2 weeks on average with many done in less than 1 week. Find more information at www.Sunpacificmortgage.com and we look forward to being able to help.

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