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Why Cash-Out Refinances?

Why Cash Out Refinances

A recent report in Quarterly Refinance Statistics, which covered refinances through 2020, stated that the dollar amount of cash-out refinances was greater in 2020 than in recent years.

In another article published by Freddie Mac a report stated the following:

“Americans treated their homes like ATMs last year, withdrawing $157.7billion amid a cash-out refinancing spree not seen since before the 2008 financial crisis.”

This information should not raise horrible memories of the housing crash we experienced in 2008, though.  In this article the facts behind the 2020 refinancing phenomenon are vastly different from those of 2008 as listed below:

  1.  Americans are sitting on much more home equity today.  In 2006 the tappable equity (amount of equity available for homeowners to use and still have 20% equity left in their home) topped out at $4.6 trillion.  Today that number is $7.3 trillion.  This is the largest number of tappable equity ever recorded and includes an 18% increase since the end of 2019.
  2. Homeowners cashed-out a much smaller amount this time.  In 2006, Americans cashed out a total of $321 billion, equaling 7% of the total tappable equity in the country.  In 2020 the $153 billion that was cashed out represented only 2% of all tappable equity.
  3. Fewer homeowners tapped their equity in 2020 than in 2006.  Freddie Mac reports that 89% of refinances in 2006 were cash-out.  In 2020 that number was only 33%, leaving tappable equity in a better position.

Today’s cash-out refinance situation in no way resembles the situation of 2006 which preceded the housing crash.  Recently, the reasons for cash-out refinancing seen by our family company here at Sun Pacific Mortgage, have ranged from investing in rental properties, consolidating debt to improve one’s credit score, getting financing for business capital, and home improvements to name a few.

If you have substantial equity in your home, owner-occupied or investment property, give us a call at 707-523-2099 to discuss the wide range of programs available for short-term private financing.  Make your money work for you with a short term private money loan from us.

Sonoma County Real Estate Snapshot In March

Q4 2019 Sonoma and Napa Counties Real Estate Reports

Living in Sonoma County has proven to be more difficult over the last year due to the restrictions imposed, however, that has not stopped or slowed down the continued good health in the real estate market here!

The following data regarding single-family residences obtained from the county’s MLS will shine a light on just how “healthy” the market has managed to remain through all the other obstacles it faced:

  • Average sold price/square foot: $504 (+18% Year To Year)
  • Median price: $740,000
  • Average price:  $945,000

Individually, towns within Sonoma County have had some record-breaking numbers to mention:

  • Town of Sonoma:  $773psf (+55% YTY)
  • Sonoma coast: $836psf (+38% YTY)
  • Russian River area: $458psf (+31% YTY)
  • Petaluma West Side: $595psf (+29% YTY)
  • Northwest Santa Rosa: $441psf (+23% YTY)
  • Southwest Santa Rosa: $451psf (+23% YTY)
  • Cloverdale: $372psf (+22% YTY)
  • Southeast Santa Rosa: $423psf (+11%YTY)
  • Petaluma Eastside:  $442psf (+11%YTY)
  • Cotati/Rohnert Park: $390psf (+8%YTY)
  • Healdsburg: $757psf (+7%YTY)
  • Northeast Santa Rosa: $447psf (+6%YTY)
  • Sebastopol: $520psf (+4%YTY)
  • Oakmont: $377psf (-1%YTY)
  • Windsor: $331psf (-14%YTY)

It was certainly hard to predict last year at this time that the housing market would look like this today!  What will tomorrow bring to the market?  Stay tuned!

If you are looking to cash in on this hot market, but cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 and find a program that may get you into your new home through private funding.  We offer financing for owner-occupied residences as well as non-owner occupied for over 3 decades now.

The California Housing Market: Trends and Forecast 2021

The California Housing Market Trends and Forecast 2021

There is little doubt that the California housing market forecast is projected to be positive.  CAR conducted a survey and found the following opinions generally held by most of the experts:

  • Buyers, sellers, and agents agreed that home prices will likely remain on their upward trend in the short term.
  • 60% of agents believe that prices will rise in the coming weeks.
  • 46% think that sales and listings will grow in the coming weeks.
  • An average of 675 new listings per day was reported in the week of January 24-30, a growth of 4.1%
  • Agents don’t see huge changes ahead in the coming months.
  • Zillow predicts that home prices will rise by 10.6% in the next 12 months.
  • For repeat buyers there is an increasing desire for a larger second home.
  • 35% of buyers are opting for a property with more rooms.
  • 37% of buyers are opting to live in a suburb rather than a city.
  • 26% of buyers are opting to live in rural areas rather than cities or suburbs.

As of January 31, the California real estate statistics read as follows:

  • Median price rose 27% YTY, the largest gain in nearly 7 years
  • Median time on the market:  12 days
  • Active listings dropped sharply from last year down 53.4%
  • January saw the highest sales level since 2009 at 484,730 units (up 22.5%)
  • All major regions’ median prices continued to increase from last year by double digits.

Every indicator points to a robust real estate market for California into the rest of 2021.  So if you’ve considered moving up, moving down, moving out of town, now is the time to sell!  Marketing is hot and there are Buyers out there who want to buy your home.

Best, Forest – The Guy in the White Hat

Reasons We Are Not in a Housing Bubble

Reasons We Are Not in a Housing Bubble

With home values appreciating by 10% in 2020, there has been some speculation that we might be in a housing bubble such as we were a decade ago.  California residents, fear not!  Here are some incredibly significant facts that this time is not like the past:

  • Housing supply is extremely limited:  If supply is low, prices naturally increase.  Normal months of inventory for the market is 6 months.  Between 2006-2008 the supply of inventory was just over 5-11 months.  Today it stands at 1.9 months – an historic low.
  • Housing demand is real:  In the mid-2000s, people bought houses based on an unrealistic belief that housing values would continue to escalate.  The mortgage industry fed into this craziness by making mortgage money available to just about anyone.  In the present real estate market, demand is real, not fabricated.  The health challenge has defined the meaning of “home” and people are re-evaluating their current home needs leading many to sell and move to larger properties.
  • This time households have plenty of equity:  In the mid-2000s, people were using their homes as ATM machines, leaving many homeowners with little or no equity in their homes at a critical time.  As prices began to drop, some homeowners found themselves in a negative equity situation.  Many defaulted which led to a flood of foreclosures.  Today according to Census Bureau data, more than 56.7% of all homes in this country have a minimum of 50% equity.

What can we take from this examination of the present housing market?  With California housing supply at an historic low, demand high and ample equity, homeowners living in pretty much every county of California do not have to fear that we will repeat the mistakes of the last decade.  According to the experts, the real estate market is not going to experience a repeat of the 2008 fiasco.

California Counties Home Prices Continue To Climb

Bay Area Second Quarter Home Prices

The growth in prices for homes in these major metros has been astonishing compared to last December.  Homeowners who held onto their homes have been rewarded with hefty increases in sold prices.  Still, the supply of pending sales is down.  Let’s look at some of the major metro areas’ statistics:

  • Metro LA:  In December, average house prices fell 0.8% to $625,250 (still 13.7% higher than December 2019.   Home sales rose 14.3% from last month.
  • LA County: Average house prices rose 6.8% to $709,500 from $664,160.  Home sales were up 30.5% from December 2019.
  • SF Bay Area:  December average home prices were up 53.8% from December 2019 at $1,058,000.  Sales of houses rose 40.2% from December 2019.
  • San Francisco: Average house prices fell 6.9% to $1,581,000.  Sales increased 53.8%n from December 2019.
  • San Diego:  Home prices fell to a new median price of $730,000.  Sales rose 30.3% from December 2019.
  • Orange County:  Home prices rose 2.2% to $950,000.  Sales rose 25.1% from December 2019.
  • Sacramento:  Home prices fell 0.1% from the previous month to an average of $442,250.  Sales rose 1.6% from the last month.
  • Monterey:  Home prices fell 0.1% from the previous month to an average of $785,000.  Sales rose by 1.6% from last month.

Pending sales leveled off from the rampant pace in late summer, but overall, there was a significant increase in home values and a continued lack of inventory.

If you are looking to invest in real estate this year – as a home buyer or landlord – get ahead of the race by consulting a mortgage broker to see what you can afford and secure pre-approval.  If you want faster financing or don’t qualify for a conventional loan, Sun Pacific Mortgage is here for you with private financing.  Give us a call at 707-523-2099 to learn about our many lending programs that can help your dream of homeownership come true.

San Francisco & North Bay Real Estate Market – review of Jan.2021

Real Estate Market Results for San Francisco Peninsula Areas

Sonoma, Marin, and Napa Counties have seen unprecedented sales numbers since the Spring of 2020. Pandemic conditions which resulted in remote working and distance learning has created a surge of demand for larger homes and bigger lots.

Many San Francisco and Silicon Valley homeowners have found the answers to their search for a more compatible living arrangement in the North Bay.  January real estate statistics present a picture of what happens when there is a rush on single family properties and extraordinarily little inventory.


  • New escrows: 193 (down 27% from 1/2020)
  • New listings:  207 (down 45% from 1/2020)
  • Sold:  308 (up 34% from 1/2020)
  • Inv. As of Feb.1: 458 (down 28% from 1/2020)


  • New escrows:  106 (up 17% from 1/2020)
  • New listings: 106 (down 17% from 1/2020)
  • Sold:  140
  • Inv. As of Feb.1: 139


  • New escrows:  52
  • New listings:  55 (down 46% from 1/2020)
  • Sold:  69
  • Inv. As of Feb.1:  188

It is expected that the immense demand for homes from buyers coming from more urban areas of California will continue and possibly even escalate going into the first half of 2021.

If you need a fast close or do not qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 to obtain a privately funded mortgage.  We have helped thousands of folks just like you over the past three decades we have been in business in California.  Our private money financing can be quite beneficial.

Real Estate Experts Biggest Housing Issues for 2021

Real Estate Experts Biggest Housing Issues for 2021

A survey was conducted in the fourth quarter of 2020 of real estate professionals to determine the biggest stumbling blocks to growth in 2021.The following are some of the key trends they see as potential difficulties:

  1. Inventory shortages:  With levels down 22% from the previous year, this was the main concern of 84% of those surveyed.
  2. Widely distributed vaccines to boost consumer confidence:  Even with the availability of the vaccine, the market could remain highly competitive given the starting point of the market going into 2021. Good for sellers, not so much for buyers.
  3. Low mortgage rates:  Renters are speeding up their home buying, and older adults are deciding to downsize sooner.  This will add to the buyers and sellers for 2021.
  4. A permanent move to remote work:  This factor was especially a weighted issue in California where the trend has been felt already in 2020.  The professionals see this as a continuing trend in 2021.
  5. Affordability challenges persist:  Finding down payments has been one of the biggest obstacles to homeownership.  This challenge will persist into 2021, although some experts are optimistic that expected tax credits may help.

Despite this mixed bag of good news/bad news, the experts remain largely confident that the real estate market for 2021 looks as promising as last year’s surprising outcome.

And for those who live in California or are considering to move to one of the beautiful coastal counties of California such as Monterey, Santa Barbara or San Diego, If you are looking for help in funding your real estate investment this year but are finding stumbling blocks when applying with conventional lenders, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands of borrowers just like you over the past 33 years to find private investors who are eager to invest in you and your dreams.

What Does Low Inventory Housing Mean to You?

What Does Low Inventory Housing Mean to You

Lack of inventory has been the one constant throughout the real estate market for the past several years.  Depending on whether you are a buyer or seller, this will be a significant factor in how you deal with the process.

If you’re a buyer, it may take time to find the right home for you.  Be patient.  Once you do find your dream home, be ready to move quickly.  Get pre-approved for a mortgage, make a competitive offer, and prepare for a possible bidding war.  Know just how far you can safely go to secure a home and trust your real estate agent to have knowledge you might not have.  Also, consult with your local lender and determine the max amount you could afford for a purchase.

If you’re a seller, know that you are, in some ways, in the driver’s seat.  With the shortage of inventory, you are in a good position to negotiate the best possible terms.  You have the advantage of determining price, moving date, possible repairs, or anything else with the potential buyer.  Don’t be unreasonable but understand that you probably have the upper hand.

According to the experts, real estate will remain a strong factor in the economic climate going into 2021 and 2022.  If you are hampered by challenging circumstances, such as difficult to prove income, weak FICO scores, or are just in a hurry to close a deal, give Sun Pacific Mortgage a call at 707-523-2099.  We specialize in private lending mortgages for precisely these situations.

Investing In Deeds Of Trust Brings Higher Return

Investing In Deeds Of Trust Brings Higher Return

To many a naysayer’s surprise, the 2020 real estate market boomed.  Prices rose, sales increased, and investors continued to grow their wealth.  In a recent article I found in Realtor Magazine, Lawrence Yun, Chief Economist at NAR, stated that even as early as August, 6 million existing and new home sales were recorded in the United States.  From our own data reports on various counties in California, we have seen exponential sales growth from San Diego to Mendocino and beyond.

Just looking at San Francisco County for December, we find double the number of properties listed since 2019.  In addition, more than half the single-family homes sold last month closed well over asking price.  With inventory remaining low for the foreseeable future, prices should continue to rise ensuring a healthy accumulation of investors’ wealth.

We have found similar data in December for the San Francisco Peninsula where homes only stayed on the market anywhere from 18-38 days and prices rose again month-to-month.

In Orange County September sales of existing single-family homes was up 30.6% over last year and the median price rose 10.8%.

In Los Angeles County for the month of September the median sales price increased 5.7% over 2019.  In Marin County, Napa County and Sonoma County for November the data was even more encouraging.

At Sun Pacific Mortgage we see investors more eager than ever to supply private money to borrowers seeking a loan.  And why not?  Surely real estate has proven to be the best long-term (and even short-term) investment for many portfolios. A trust deed investment means that you are not involved in the day-to-day operations of your property with all the headaches that can bring.

Unlike the stock market where you are never certain where your capital is from day to day, real estate has proven over the decades to be a solid investment, and remember, it is the only one you can live in!

So give us a call at 707-523-2099 or reach us through our website at www.Sunpacificmortgage.com.  We’ll be happy to explain how we work and how you could start earning greater returns on your investments.

Real Estate Continues To Be A Great Investment

Real Estate Continues To Be A Great Investment

For a variety of reasons, the predicted recession of 2020 never affected the real estate market segment anywhere in the United States, but particularly in California.

Back in March there was much “gloom and doom” with a tsunami of foreclosures expected as we sheltered in place.  Instead, a housing boom has emerged in many of the top counties of California including Sonoma County, San Francisco and the Peninsula areas of San Mateo & Santa Clara Counties.  All with appreciation exploding and homes being swept up in record time!  You just need to ask a homebuyer from this past year how easy it was to find and procure a home, given the stiff competition and lack of inventory.

We have definitely seen a V-shaped recovery in the real estate market as opposed to the other shaped recoveries, i.e., U-shaped, W-shaped, and    L-shaped.   Even early in the pandemic, the WSJ polled its economists and found that 68% predicted a V-shaped recovery for real estate.  Nevertheless, some naysayers persisted in believing and predicting a real estate crash akin to the last one.  And yet August sales for both existing and new homes hit their highest mark since 2006.

This winter, when we generally expect to see a slowdown in real estate sales given the holidays and bad weather, instead we saw an increase of 30% in mortgage applications for home purchases.  Also surprising was the increase of 11.4% in home values nationwide and an even greater increase in California.

While the stock market has seemed like a dizzying rollercoaster ride this past year, the real estate market has had a steady ascent.  Investors looking for a haven for their wealth, have turned to the real estate market in greater numbers than ever.

If you have ever thought about adding real estate to your retirement portfolio, this may be the ideal time to do it. Want more than 7-9% return on your investments? Deeds of Trust can help you achieve this!

Give us a call at 707-523-2099 to become one of our trusted private money investors.  It’s a great way to expand your wealth in property and become a land baron without the hassle of being a landlord/landlady.  We have 3 decades of experience as a family-owned-and-operated private money broker while maintaining a sterling reputation with buyers and investors alike.

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