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Selling a House? Don’t Overprice It


Hello fellow Realtors, Lenders and other friends; 

There was a really good article released by The KCM Blog on July 15th 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, Forest & 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



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

Sweetening The Current Market and Rates

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!

1 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?

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:

2 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!

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.

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.

Houses And Their Reflection

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, Forest



Forest Tardibuono 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.comDRE license #01464899/NMLS #360993


Real Estate and Buying A Home – On A High Horse But A Good One!



by Broker, Forest Tardibuono

“High Horse” – In a Good Way

“Get off your high horse” is a request to someone to stop behaving in a haughty and self-righteous manner.

But notice that a high horse is a common depiction in statues of leaders. These conjure images of a leader on his horse, commanding masses of his men.

The latter is what The Guy in the White Hat has as a purpose in these Viewpoint Articles. I am not a leader of men and I don’t even own a high horse, but I am trying to lead people to home ownership in spite of negative press, oppressive regulation and the naysayers.

These serve to have a “chilling effect” on those who would be buying a home but aren’t because of the negative effects promoted by whatever sources.

On my high horse, The Guy in the White Hat is here to tell you that home ownership is not only desirable, it is the correct financial decision to make, especially right now. I was at the local Realtor® breakfast this week and the CEO of the California Association of Realtors was a special speaker. He said that the current market – nationally – is an “opportunity of a generation.” Real estate prices are at rock bottom and interest rates are at 50 year lows! How often do you see an “opportunity of a generation”?

In my business as a Hard Money Lender, I am the busiest in years, with people buying homes in spite of having to put 25% to 30% down and getting the highest rates in the industry. These people are not chilled whatsoever. They have simply decided to overlook all the negative out there and buy while the buying is especially good.

So don’t be “chilled” to do what you know to do and want to do. Take advantage right now, of the opportunity of a generation.

High horse in a good way! Right?

Forest Tardibuono- 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.

Make the Winning Offer


Make the Winning Offer

Who doesn’t want to know how to beat out the other purchase contracts in today’s multiple offers and lower inventory markets, and buy that house!

There was a really good article in the Wall Street Journal recently about Hard Money loans.  It was informational to borrowers and investors alike.  It spoke of the fact that Hard Money loans will account for 1% of the 5.5 million home loans originated this year, up sharply from prior years.

It mentioned “Hard Money” filling an important void.  Look at just a few instances:


  1. You are 1 of 12 different offers with a highest-and-best counter, on a house you really want to live buy.  You have the ability to put down 30% of the purchase price and get pre-approved for a hard money loan with a quick call to a good local Hard Money Lender.  You remove loan contingencies, increase your earnest deposit and make a 15 day closing date and your offer gets accepted!  Now this is a scenario where you win and Hard Money can fund that loan!
  2. You just did a short sale on your home and want to buy another one.  Your favorite bank won’t even talk to you.  You know that prices are at rock bottom and you can buy the same home that you bought 5 years ago for $400,000 now priced at $250,000!  Hard Money can fund that loan!
  3. You lost your job and your credit is shot.  You now are back to work making the same money and you want to buy a house.  You’ve got 30% down.  No bank will touch you as your FICO score is 525.  Hard Money can fund that loan!


The Wall Street Journal article further states that the fees and rates are no doubt higher than a bank, but it is well worth it as “no bank is willing to listen.”

The real gist of this article is to not give up about buying a home; It just takes a strong and strategic offer to beat out all the others, despite not being the one with the most cash!

Even at Hard Money rates (some of which I’ve gotten funded as low as 9%)  its worth it because you’d be getting in at the bottom of the market and down the road could refinance to a 30-year fixed rate loan once qualified again.   Your gain from buying at the right time can offset the cost using Hard Money.

Take advantage of a Hard Money loan or help your potential Buyers succeed at getting into a new home by directing them to such versatile financing!

CREDIT – The Bane of Home Loan Approvals


CREDIT – The Bane of Home Loan Approvals

This aspect of qualifying for a home loan boils down to good credit versus bad credit.

The lenders left in the mortgage market arena, let’s call them institutional lenders, the ones that are offering the 30 year mortgages at historic low rates, require good credit (among other things).

Hard Money lenders allow bad credit. Institutional lenders will make you wait years after you have a bankruptcy, foreclosure or short sale before they will lend to you.

Hard money lenders will loan to you immediately after any of those events and even while you are going through them!

Same with recent credit problems including 30, 60, 90, 120 day lates, judgments and/or collection accounts.  Institutional lenders hate these.  Private money lenders can do a loan in spite of these.

Hard money lenders generally require just 2 things:

  1. Equity or a good down payment and
  2. Ability to repay the loan.


Look at the important role played by Hard Money:  Guy has a free and clear property.  He fell on some misfortune and his credit was damaged.  He makes plenty of money and he has no house payment.  He goes to his favorite bank where he’s been for 25 years.  Loan denied due to bad credit.  He calls a loan officer friend who works for a bigger bank who tells him he’s out of luck due to bad credit and to come see him in a couple of years.

This guy has a free and clear property and none of the institutional lenders will lend to him due to bad credit.   A Hard Money broker will do this loan!  There is equity and ability to repay.

Let’s say you have a happy couple who make good income and have saved up enough for a decent downn payment to buy a house.  They filed bankruptcy a year earlier which included a short sale so no bank will help them out.  Yet a Hard Money broker will do this loan as they have decent down payment and ability to repay!

This handles the credit aspect of a loan.  Give me a call today and let me help you and your Buyer(s).

How Can I Get A Home Loan?

Out of the Ashes…


by CA Broker, Forest Tardibuono

Out of the Ashes…
I have empirical evidence of the real estate market recovery. Statistics I monitor that have seen a dramatic turn recently. It has me more excited about the recovery than housing sales.
My Past Borrowers are buying houses, and they are using Hard Money to do it. And it’s logical that they would.

Picture this, my office did over 400 loans annually up to 2005 when the market tanked. The average Borrower up until 2005 borrowed 80% of the value of their home. A lot of them got a “free” home equity line of credit to boot as the lenders were giving those out like it was Halloween candy!

Then values were slashed in half in Sonoma County where I live. The median priced home in August 2005 was $619,000 and it dumped all the way down to a median of $305,000 last year. In outlying counties, the drop was as much as 66%.

So anyone who borrowed to 80% of the value of their home and then saw a 50% decline in value, has been foreclosed upon, did a short sale or is hanging in there hoping that values might recover to their former glory.
It was a deal killer for my business because in the pre-debacle days, the biggest quantity of loans in my company came from Past Borrowers, that is past clients. In second place were Referrals from Past Borrowers. That source of business virtually went away from 2005 until only very recently.

Over 50% of the loans written in my office this month are Past Borrowers. That’s way up from 0%. Now that’s a recovery!

And it’s because of Hard Money. Every one of those Past Borrowers has either a foreclosure or a short sale – or both in their recent credit history. Many have a recent bankruptcy. Not even their favorite bank will loan to them. Hard Money will. With a good down payment or equity in the property and an ability to make the monthly payments, I can do that loan.


Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 24 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Forest@sunpacmortgage.com.  See newly designed website @ www.sunpacmortgage.com.  DRE license #01464899. NMLS #360993. 

The Winning House Bid – You Get the Deal

The Winning Bid


It looks like the various predictions that 2012 will be the best year in Real Estate since 2006, are coming true.

The statistics bear this out for sure, but a more telling phenomena is the dreaded bidding war.  That is a listing that receives multiple offers.  These happen with frequency in a market with not emough homes and too many eager Buyers.  It also happens on really desirable properties.  Of course this is great for the Seller of that property and the values for that area, but only 1 Buyer will take home the prize.  The losing bidders will have to go find another one.  I have personally seen a Buyer from my office recently compete with 34 other offers on a property.

He had the Winning Bid.

What set his offer apart, as far as we can tell, is the fact that he was purchasing with Hard Money.

The listing agent knew that the Hard Money Pre-Approval for that Buyer meant that the lender was ready to go with this loan.  He knew that the property would not likely be a problem to the lender, as Hard Money will do really ugly properties, and this one was not that bad.  He also knew that it would be fast as the contract offered a close of escrow in 21 days or less.

So the Buyer made the offer using Hard Money with a 21 days or less close of escrow and all contingencies removed in 10 days instead of the default of 17 days. This was an offer the listing agent could really get behind and it was the Winning Bid – out of 34 others!

So if you are feeling beat up after making offer after offer to no avail, get to your local Hard Money Lender, get Pre-Approved and go write a Winning Bid!

Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 24 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Forest@sunpacmortgage.com.  See newly designed website @ www.sunpacmortgage.com.  DRE license #01464899. NMLS #360993. 

Sure Advice for Real Estate Success

By; Broker Forest Tardibuono

Sure Advice for Real Estate Success

As Rick Laws mentions in his 2nd quarter real estate report, the Bay Area experienced over 30% increase in homes sold compared with last year.  A 30% increase!

The big question is: “How does a Buying Agent get their Buyers to write the offer that gets accepted?”.  The answer is: “ They make the strongest offer.”  But what does this mean?

Below are some very successful points of advice that, when followed as much as possible, will definitely contribute to a successful accepted offer:

  1. Higher initial deposit.
  2. Shorten close date.
  3. Remove as many contingencies where possible. (For example, an investor or flipper who will remodel the home and resell or rent it, might go for removing inspection contingencies.)
  4. Stronger loan; Shorter loan contingency removal date; No loan contingency at all.  (This can be accomplished by getting a hard money loan for example.)

Why should a Realtor or Buyer for that matter consider following the above points of advice to increase the likelihood of getting an accepted offer?  How about for these 4 main reasons to own a home:

  1.  Tax Savings.
  2. Pride of Ownership.
  3. Appreciation.
  4. Accumulation of Wealth.  (For renters, 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.   30 Year Fixed rate mortgages stay the same and one can pay down their home and increase their equity, ie. accumulation of wealth.)

In today’s real estate market, houses are just increasing in value so Buyers are making smart decisions for their future financially.

Hard Money can definitely help make an offer “strong”.  I work with Buyers who have damaged credit including a bankruptcy, foreclosure or short sale in the immediate past.  With a good down payment and an ability to show you can pay for the loan, you can get a loan and be a homeowner today.  So call me!

Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 24 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Forest@sunpacmortgage.com.  See newly designed website @ www.sunpacmortgage.com.  DRE license #01464899. NMLS #360993. 

It Pays To Own A Home


By Broker, Forest Tardibuono

It Pays To Own A Home

I tout the big three reasons to buy a home: #1. Pride of ownership appreciation; #2. Tax benefits and #3. Appreciation. There is a 4th though that may well trump them all.

I have had the pleasure to work with many, many private money investors for more than 20 years. These are men and women who have made their fortunes in a variety of ways and lend those funds to borrowers who have equity in a property and an ability to repay the loan.

Many of them have told me that the day you can retire is the day you pay off your home. That is a very future minded goal. It’s difficult to see when you are 29 years old, have 2 kids in diapers, own your own boat which you never use because you have 2 kids in diapers, credit card debt, and a car payment of $329 per month. Plus you have to buy all those diapers! And handi-wipes. And little sets of clothing. And teeny-tiny shoes.

But if you had the good sense to buy the home you live in, then all of a sudden – and believe me as a Grandpa it’s all of a sudden – your kids are grown up and now in college and you’ve paid 20 years on that mortgage. Then a bit later on, you no longer have the kids at home, you have a bit of extra money and can start throwing it at the mortgage to get it gone. So say at age 55 you no longer have a house payment. Priceless!

My Dad bought a home in Chandler Arizona in 1968 for $16,900. He took out a 30 year mortgage with a monthly payment of $159. With 7 kids at home, the payment was difficult for him to afford at that time. But what strapped him in 1968 was almost a breeze in 1978 as his and Mom’s incomes had risen. It was even easier in 1988 for the same reason. After another 10 years Dad finally paid off their 30 year fixed rate loan. No house payment and a very low property tax basis on their home.

You cannot accomplish the above as a renter. Here is some astonishing math. Let’s say your rent is $1,300. In 30 years you will have paid $468,000 on some other guys mortgage. That’s if rent over 30 years stays at $1,300. I bet not. Let’s say it goes up $250 every 10 years. That’s $570,000.

Those numbers alone should compel you to figure out how to be a buyer, but there is more. Ever been told you have to move because the landlord is selling the home? Or the rent increases come quicker than $250 every 10 years?

Buy a home and let it work for you, quietly in the background, being paid down, increasing in value, until that glorious day arrives when the mortgage is no more! Then retire.


Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 23 years of experience in real estate and lending. His phone number is (707) 523-2099. Email is Forest@sunpacmortgage.com. See website @ www.sunpacmortgage.com.

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