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Investors, When Can We Expect the Next Recession?

August 28, 2018

Recession2018 Economist And Analysts Have Studied The Trends In Our Economic Growth Over The Past Decade And Beyond, And They Have Concluded That A Recession Is Coming In The Next Couple Of Years, 2020 Per Them.

Economist and analysts have studied the trends in our economic growth over the past decade and beyond, and they have concluded that a recession is coming in the next couple of years, 2020 per them.

But, as real estate investors, you have no need to panic!  A recession does not mean a housing crisis. A recession means the economy has slowed down markedly, but until the last recession, home values appreciated during an economic downturn.  

The causes for the real estate crash have been remedied for the most part, and we can presume, from historical data, that a recession will not have a negative impact on the housing market this time around.

What does that mean for you, the real estate investor?  You can sleep well knowing that your hard-earned money is as safe as possible and earning high returns, in this topsy-turvy world of today’s economy.

If you are looking for a higher return and safer harbor for your money, please call us at Sun Pacific Mortgage at 707-523-2099.  We will be happy to help place your funds in deeds of trusts, backed by California real estate. We invested $14 million the past month and aren’t slowing down any time soon.  Rest assured we will have trust deed offerings regularly available for your investing.

Why Should I Buy Today Instead of Waiting?

August 22, 2018

Image1 Today Most Industry Leaders Would Agree That Waiting For Home Prices To Drop Significantly Before Buying Property Is Very Unwise.  The Latest Reports Anticipate At Least A 5.2% Increase Over Last Year’s 7% Increase In Property Values.

Today most industry leaders would agree that waiting for home prices to drop significantly before buying property is very unwise.  The latest reports anticipate at least a 5.2% increase over last year’s 7% increase in property values.

Besides anticipating a jump in market pricing, another reason to make your move now is the inevitable interest rate hike.  The 30-year mortgage has increased by half a percentage point already in 2018. Most institutions involved in lending are projecting the rate will have increased by a full point by this time next year.

It is good to remember that whether you own or rent, you are paying a mortgage, your own or your landlord’s.  The obvious advantage of paying your own mortgage is that you do not need to concern yourself with unwanted surprises, like rent increases and decisions made by your landlord that jeopardize your living arrangements.

Another reason to consider home ownership is the “forced savings” it affords.  The equity your home accrues throughout the years will allow you to tap into substantial funds later in life.

If the right thing for you and your family is to purchase a home this year, consider buying sooner rather than later.  And if you think you can’t qualify for a loan, consider the option of a hard money loan with Sun Pacific Mortgage, where your credit score, condition of property and difficulty to prove income is not our first concern.  Call us today! (707) 523-2099

Real Estate – Best Investment for Past 5 Years!

August 15, 2018

Investments Despite The Volatility Of The Real Estate Market In The Past, Most Americans, Particularly Gen X’s, Believe In The Long-Term Advantages Of Property Ownership.  A Recent Article In Keeping Current Matters Stated That 2011 Saw Gold As The Choice For 34% Of Investors, But Today Those Same Investors Are Turning To Real Estate As Their Number One Investment.  The Other Choices For Money Growth Fall Into 3 Categories:

Despite the volatility of the real estate market in the past, most Americans, particularly Gen X’s, believe in the long-term advantages of property ownership.  A recent article in Keeping Current Matters stated that 2011 saw gold as the choice for 34% of investors, but today those same investors are turning to real estate as their number one investment.  The other choices for money growth fall into 3 categories:

  • 26% of investors are counting on the stock market
  • 17% are still investing in gold
  • 15% like the old, safe but slow growing, stand-by:  savings accounts

Besides the financial benefits of real estate investing, there are the powerful emotional reasons for buying a home.  Most real estate buyers or investors are looking for long-term stability needed to raise a family, the security of ownership, the space to “do your own thing”, and the ability to make changes to suit your living style.

Think you missed the boat with the real estate boom?  Think again and call Sun Pacific Mortgage! We have helped many individuals who wanted to become home owners themselves or helped investors who wanted to increase their real estate investments.

We can help you, too!  Give us a call today at 707-523-2099 or email us by clicking here.

How To Maximize The Profit From The Sale Of Your Home

April 10, 2018

Valueofofyourhome Selling Your Home Can Prove To Be Either A Smooth Or Bumpy Process With Varying Rewards.  Two Keys To Ensure That Your Efforts Yield The Highest Price Possible Are:

Selling your home can prove to be either a smooth or bumpy process with varying rewards.  Two keys to ensure that your efforts yield the highest price possible are:

  • Price it a little low:  Statistically, it has been proven that property priced below Market Value encourages significantly more interest and higher selling prices than those priced above Market Value.  When examining this concept, it becomes clear that it is better to have multiple buyers fighting with each other over your home, than for you to be fighting with one buyer over the price.  Realtor.com advises: “Aim to price your property at or just below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.” 
  • Use a Real Estate Professional:  Sellers may think they can improve their profit if they don’t pay a real estate commission,. But studies have shown that homes typically sell for more money when handled by a real estate professional.  Sales in 2017 suggest that the average price was almost 6% lower for FSBO sales of similar properties.

The “Take-Away” from this article:  To maximize the profit from the sale of your home, price your house at or slightly below the current market value and hire a professional.

Interested in alternative financing or private lending for your next home purchase? Give us a call today (707) 523-2099!

Arbitraries in Hard Money Lending

December 6, 2017

Office Staff Pic On January 11, 2018 Our Office Will Celebrate Having Done Loans For 30 Years.  We Have Personally Done And/Or Supervised Thousands And Thousands Of Loans.  We Have Almost Seen It All.  Not Too Much Surprises Us Anymore.

Arbitraries in Hard Money Lending

On January 11, 2018 our office will celebrate having done loans for 30 years.  We have personally done and/or supervised thousands and thousands of loans.  We have almost seen it all.  Not too much surprises us anymore.

So, what does the word arbitrary mean?  The dictionary states “based on random choice or personal whim, rather than any reason or system”.

The loans made through my office in the last 6 years, (since the “recession”) regardless of the credit, regardless of the income and regardless of the location, because the property has equity, have not been foreclosed upon in any significant number.  Foreclosures have been started (this is your remedy for non-payment), but only 2 have gone to the Court House steps.  Those 2 had equity and the lender got all his money and more.

The arbitraries on underwriting a loan are credit, income and location, but as Hard Money Lenders our main concern is equity.

During the recent recession there were foreclosures in great number and EVERYONE was hit –  from the 30 year fixed rate borrowers to the hard money borrowers.  Values plummeted.  During that period it was not credit or income that drove the foreclosure market, but plummeting equity.

So, in the main, we are looking for a loan approval by an individual, who serves as underwriter in their capacity as lender.  This approval process ranges from an investor giving a very quick, “I’ll do that loan.  When can I fund?” to the investor who has a list of conditions regarding credit, income and/or the property as long as your arm.  Many investors settle for the middle ground, simply wanting clarifications on the loan application or about the property.

The underwriting of a Hard Money loan should mainly involve the equity in the home, whether a purchase or refinance.  That is statistically what matters.  This is a fact borne out of the numbers, just from my office, regarding Hard Money in the last 6 years and from 30 years’ experience with every type of loan available.

My hope is that this “blog” will make the process a bit simpler for you as the investor, and make it easier for you to get your money out there faster because you did not have to pour over the credit or the income.

 

Hometown Superheroes Bulletin #2

October 17, 2017

LET’S GET BACK TO DOING THE USUAL

NOTE:  Please share with us any heroes you have personally observed, been thankful for or have been inspired by.  We will then share it with everyone.

Super Hero Alert:

● David Reyes, his son Luis Reyes (property owners and customers of ours from Hayward, CA) just personally bought and delivered 40 whole chicken dinners, 12 pizzas to the SR Veterans building for those that need it!!!!  Super Heroes!!!!

● Yesterday we started making an effort to Do the Usual.  Get the loans done!  Lo and behold the County Recorder opened their doors and started recording transactions yesterday! We were able to record a local transaction that HAD to be done by Friday.  We all came in early this morning and just received a delivery of a closing check. Pays to be early!  We expect several others by Friday!!!!  We’re feeling a little more normal.

● Tracy Escher at First American Title in Sebastopol is the only one manning that office!  She’s working her tush off – she’s a machine!  And getting it done!!  Thank You Tracy!!

● Adel’s Restaurant on the corner of Mendocino Ave and College:  Broker drove around for 40 minutes looking for a breakfast place.  He happened by Adel’s which was open at 6:15am!  A welcome sight.  They weren’t open the day before,  but gathered their group,  and are now open at 6:00 am and closing LATE.  They have 2 cooks and 3 waiters and 1 clean-up person.

● A clerk at Target, as we were checking out some clothes for the grandkids, listened to our granddaughter tell her story of losing her house and immediately asked another clerk helping to “go and get 2 pumpkins”.  They gave the kids 2 large pumpkins so they had something for Halloween.  It was sooooo lovely and cute.  There were a lot of workers at Target the day the fires struck Santa Rosa!!  So surprising.  Starbucks at Target was also buzzing with business.

● Looks like a lot of the big stores are allowing RVs to park and stay.  Very nice!

San Francisco Real Estate Market Today

September 27, 2017

1 If You Have Been Following The Real Estate News, You Are Very Aware That Sellers Have Been In Control Of The San Francisco Real Estate Market For Many Months.  As We Move Into Fall, Nothing Has Changed.  In Fact Presently There Are Only 1.5 Months Of Inventory.  The Measure Of A Buyer’s Market Is 6 Months Of Inventory.

 

If you have been following the real estate news, you are very aware that Sellers have been in control of the San Francisco real estate market for many months.  As we move into Fall, nothing has changed.  In fact presently there are only 1.5 months of inventory.  The measure of a Buyer’s market is 6 months of inventory.

What should this say to the “on-the-fence” Seller?  If you have been seriously thinking of selling your home, you might want to make your move sooner rather than later.  There is a great demand for homes and the chances of getting top dollar for yours is better now than it will be in a Buyer’s market.

Mortgage rates may be low now, but if you are in a position that does not allow you to access these better rates, give us a call here at Sun Pacific Mortgage.  We cater to that portion of the buyer population who needs a fast loan, has less than stellar credit or who has difficulty proving their income.  We offer bridge loans as well, so if you find a home you want, but haven’t sold your current house yet, we can help with that too!

As of early September, there were 614 homes for sale in San Francisco.  One of these could be yours if you act now. Call us at 707-523-2099 and see how we can help.

Who Is Today’s Real Estate Investor?

September 14, 2017

Love Re Investing Who Do You Envision When You Think Of The Stereotypical Real Estate Investor?  The Reality Is Far From The Hollywood Image Of The Businessman In An Expensive Suit.  It Turns Out That The “Average” Real Estate Investor Is More Like You Or Your Next-Door Neighbor.

Who do you envision when you think of the stereotypical real estate investor?  The reality is far from the Hollywood image of the businessman in an expensive suit.  It turns out that the “average” real estate investor is more like you or your next-door neighbor.

Bigger Pockets, a real estate investment social network, had some insightful observations about today’s investors.  The following are some of the more common misconceptions associated with real estate investors along with a reality check:

  • In reality, real estate investors are split 75/25% with 75% being male and 25% female.
  • Real estate investors are wealth.  Many investors are not racking up big annual incomes, but have studiously saved and used creative financing options.  Their household incomes are much like yours.
  • A majority of real estate investors are 50+.  Most investors begin on their path to building wealth through real estate in their late 30’s and as a supplement to their 401K retirement plan.
  • A lot of real estate investors own apartment buildings or land.  Other investors own single family homes, because the upfront costs are less and these present fewer risks.

 

Many of these realities are our experience at Sun Pacific Mortgage, where we have been in the hard money lending business since 1988.  We partner with many new and experienced investors, who enjoy high returns, from 9-13% on their investments.  If you are interested in learning more about real estate investing, please call us at 707-523-2099.  You can also consult our website for further information on how to start earning with us.  

Sonoma County Real Estate Update

August 31, 2017

021215 According To A Recent Article Published By Pacific Union, Sonoma County’s 2Nd Quarter Real Estate Sales Demonstrated A Distinct Divide Between Homes Over $1 Million And Those Under $1 Million.  Homes Priced Between $1-3 Million Saw An Increase In Activity Of Almost 50%.  Homes Listed Under $1 Million Saw A Noticeable Decline In Sales Compared To The Same Quarter Last Year.  Sellers Continue To Hesitate When It Comes To Listing Their Homes In This Price Range, Afraid They Will Not Be Able To Find A Suitable Move-Up Home.

According to a recent article published by Pacific Union, Sonoma County’s 2nd Quarter real estate sales demonstrated a distinct divide between homes over $1 million and those under $1 million.  Homes priced between $1-3 million saw an increase in activity of almost 50%.  Homes listed under $1 million saw a noticeable decline in sales compared to the same quarter last year.  Sellers continue to hesitate when it comes to listing their homes in this price range, afraid they will not be able to find a suitable move-up home.

Because the demand for higher priced homes was very healthy, it helped create the perfect storm for bidding wars:  few homes available vs. many interested buyers.  

Since the end of the 2nd Quarter, Sonoma County has experienced the “summer slump”, but indicators are pointing to a more robust second half of the year.

If you are looking to get ahead in the real estate coming-boom, Sun Pacific Mortgage is here to help.  We offer “not-normal” loans for Borrowers who have difficulty getting approved for conventional financing or for Home Owners looking for a Bridge loan to buy another home before they sell their current house.  Give us a call at 707-523-2099.

Visit our Sonoma County website: http://www.sonomacountyhardmoneyloans.com/

Local Cities Named as California’s Best Place to Live

August 15, 2017

1 2 No.9: Fremont (Alameda County) – Close To Silicon Valley.

In a recent study done by SmartAsset, 345 California cities were ranked the
best places to live with 5 of the top 10 spots going to the East Bay. Here
are the rankings:

No.1: San Ramon (Contra Costa County) – it is home to at least three
major corporate headquarters.

No.3: Dublin (Contra Costa County) – it is central to San Francisco,
Oakland, and San Jose.

No.5: Pleasanton tied for 5 th (Contra Costa County) – Safeway
headquarters.

No.9: Fremont (Alameda County) – close to Silicon Valley.

No.10: Hercules (Contra Costa County) – has the most affordable housing
of the top cities, with a median home value of $395,800.

All of these cities benefit by being in close proximity to San Francisco with
easy access to BART (Bay Area Rapid Transit).
Silicon Valley had 2 cities in the top 10:

No. 4: Foster City (San Mateo County) – Visa is headquartered here.

No. 7: Cupertino (San Mateo County) – Apple’s headquarters.

Some of the metrics used to determine ranking included: median monthly
housing cost, median home value, unemployment rate, and median
household income. This study used cities with at least a 20,000 population.

You can read the entire article at: https://smartasset.com/mortgage/the-
best-places- to-live- in-california

If you are looking for financing to make the move to one of these great
cities and need a fast loan or “not normal loan”, also known as hard money,
don’t hesitate to call us at 707-523- 2099 – we can help.

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