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Why is there a housing shortage?

One of the hottest topics in the world of real estate today is the shortage of available homes.  There are just too many Buyers and not enough Sellers.  This means good news for Sellers, not so much for Buyers.  But as life begins to return to normal, that may begin to change.

If we look for the root cause(s) of this shortage, we find the factors that contributed to this problem and what the future might hold as a remedy.

Where did the shortage come from?  Don’t blame the rush of Buyers wanting more “home office friendly” dwellings.  This low supply was a product of the lack of new homes built over the past decades.

Historically, builders completed an average of 1.5 million new housing units per year.  However, the building gap in the U.S. totaled more than 5.5 million in the last 20 years.  To correct this shortfall, new construction would need to accelerate to more than 2 million housing units per year, according to The National Association of Realtors.

When we look at existing homes, the latest reports indicate a positive housing supply growing gradually month-over-month showing that things are beginning to shift.  Some experts are optimistic enough to say that we may have turned the corner.

Here in California, it is still a great time to sell.  Growing companies, families wanting more house and space for joint work-live situations, Californians who moved away starting to move back, these are all reasons real estate remains strong and more homes are being built!

If you are hesitant to put your home on the market because you fear you will not find a replacement, consider a Bridge Loan from Sun Pacific Mortgage.  Accessing your present home’s equity, you would be poised to present a very strong offer on your new property.  This very popular private money loan would allow you a quick close with a cash offer, something every Seller is looking for at this time.

Give us a call at 707-523-2099 or email us through our website at www.sunpacificmortgage.com to see what we can do for you to ease the tension of selling and buying in these competitive times.

Recently Funded – Helping Where Needed

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Let Us Be Of Help When Needed.

These are trying times for many.  Wouldn’t it be beneficial to discover a possible home loan program that could relieve some of the stress?  This is where we hope to be of help!

The Hard Money mortgage programs we offer are backed by real estate equity –helpful for purchases, refinances for debt consolidation, to pull out additional cash for upgrades or for business capital, etc.

We also have a unique Alt-A Hard Money program great for anyone who is fully qualified for conventional financing but wants a faster loan OR someone who just missed qualifying and still wants help.
Call Today 707-523-2099 with any questions or specific scenarios. We will quickly let you know what help we can provide to you, a friend or even your clients.

Others Recently Helped by Us

Location:  Cazadero, Sonoma County
Finance Program:  Primary Residence Refinance
Loan Size:  $380,000
Days to Close:  28
Reason Came To Us: Didn’t qualify as poor condition of property but needed business capital.

Location:  North Hollywood, Los Angeles County
Finance Program:  Investment Property Purchase
Loan Size:  $397,000
Days to Close:  14
Reason Came To Us:  Didn’t want to lose out on another investment opportunity.

Location:  Penngrove, Sonoma County
Finance Program:  Investment Property Refinance
Loan Size:  $325,000
Days to Close:  20
Reason Came To Us:  Credit was poor but needed to refi out of a loan that had come due.

Location:  Goleta, Santa Barbara County
Finance Program: Refinance of Primary Residence
Loan Size:  $450,000
Days to Close:  13
Reason Came To Us: Needed to quickly pay of the existing reverse mortgage of a relative who recently passed away, otherwise property would be foreclosed on.

Location:  Sacramento, Sacramento County
Finance Program:  Primary Residence Refinance for Business Purpose
Loan Size:  $235,000
Days to Close:  11
Reason Came To Us: Had too many bills and wanted to do debt consolidation to improve credit standings.

Looking to Improve Your Home’s Value?

Looking to Improve Your Home’s Value

Are your toying with the idea of selling or staying in your home?  Whatever you decide, increasing the value of your home is a win-win.  Some improvements you can make will add to the beauty of your home, while others will make it more efficient or more comfortable.  Whether you want to build equity in your home or sell it for top dollar, there are plenty of home improvement projects that are worth considering.

  • CLEAN AND DECLUTTER:  Deep cleaning and decluttering can add as much as $4000 to your resale value according to a 2019 survey from HomeLight.  Even if you are not moving, this exercise will help decrease stress in your life by providing more organization and simplifying your life.
  • MAKE YOUR HOME MORE EFFICIENT:  An inexpensive way to improve efficiency and save money is to install a smart thermostat.  If you are tech-savvy, you can even control your home’s temperature from your phone while you are away.
  • FRESH PAINT AND FLOORING:  An inexpensive way to update and freshen up your interior and exterior is with a coat of paint.  Everyone loves newer carpeting and fresh paint. Most home buyers are looking for a turnkey home so they can just unpack their boxes and settle in without the hassle of renovating.  And if you are staying in your home, these simple upgrades will make you love your home even more!
  • UPGRADE DOORS:  Replacing your front door will do wonders to the overall curb appeal of your home.  Replacing interior doors or just painting and replacing the hinges and doorknobs can add freshness to your home.  Since the front of your home is the first thing a prospective buyer will notice, a new garage door is a great idea.  Garage doors take up the most amount of space on the front of your home, so installing an interesting take of the usual garage door could bring in more buyers and please your neighbors, too.
  • ADDING USUABLE SQUARE FOOTAGE:  This makes a lot of financial sense since the value of your home is based on livable square feet.  Adding a bathroom, a great room or an additional bedroom can greatly increase both the function and value.   A “Granny Unit” is another valuable addition that can become a possible income source as well as add value.

Your next question may be “How will I finance these home improvements?” 

One of the financing options available to homeowners who want a fast cash, have less than stellar credit or difficulty proving income, is a Hard Money loan – also known as Private Money and Alternative Financing.

Sun Pacific Mortgage has been coming to the aid of this demographic for over 3 decades.  We have helped thousands of clients who would otherwise have been left without the means to make improvements or to invest in real estate.  If you are interested in pursuing a loan from us, please give us a call at 707-523-2099 or check us out on our website at www.Sunpacificmortgage.com

See entire article:  https://www.bankrate.com/loans/home-improvement/cheap-fixes-to-boost-the-value-of-your-home/?utm_source=Pushly

Alternative Financing Programs

Hard Money Loans in General:

Only 2 qualifications for the following loan programs:

1. Decent existing equity or at least 20% down payment;

2. An ability to repay the loan (source of income);

Normal turn-around time – 1-1/2 to 2 weeks.

Loans from $150,000.00 to $1.5 million.

Bridge or Temporary – Owner Occupied and Investment Property:

Allows homeowner to sell their house after they purchase a new one. Short term loan on the equity without the need to first sell current home. They can buy new home then sell the existing home.

Also used to buy new home with short term loan awaiting qualifying for conventional loan. Additionally used to do fix-ups of existing home in order to get maximum selling price.

Purchase/Refinance – Owner Occupied and Investment Property:

Easy qualifying on credit, proof of income or condition of property.  These loans are normally done once bank or conventional lender can’t do the loan.

Can be used for any purpose including fix-up to then resell/flip. Majority of the time the buyer can fix their qualifications within a year or 2 and refinance into a conventional loan.

Business Purpose:

Short term loan based on property equity. Most commonly used to start a business or purchase a rental property.

Commercial:

Small commercial buildings, easy qualifications up to $1million.

Land/Cannabis Loan:

Must have at least 50% down.

 

If you’re looking for alternative financing in California, call us today! (707) 523-2099

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…

 

LENDER’S VIEWPOINT
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. 

Proven Realtor Social Networking & Marketing Sites

Lenders Viewpoint
By Forest & Lynn Tardibuono

Proven Realtor Social Networking & Marketing Sites

After our Daughter ‘n Law (who is our Marketing Director) attended the local Sonoma County Tech Expo with seminars from experienced representatives of Trulia, Zillow and C.A.R., we all decided a list of the staple social networking, marketing and advertising sites for Real Estate Agents and Brokers would be helpful.

How can one keep up with the ever-changing and expanding, marketing and social networking world wide web, much less know which is the best avenue to take? You can’t! But you can profit from these with little of your own time exhausted, if you just know which ones to use.

The following list is based off almost 4 years of trial and error, weekly and monthly review of the response statistics of these avenues, as well as daily tracking of our calls into the office, for new loans and real estate interest. As these proved to be the most effective for our markets, we wanted to share so others could benefit as well.

 

Efficient/free advertising for promoting open houses, listings and your services:

Craigslist – free advertising, very popular site – one of top most ranked in USA.

Mountain Byteswww.Mountainbytes.com – $.01 cent per email address
A large Agent based opt-in website. Allows you to easily build your own e-fliers and target specific areas. Great for promoting your open houses and new listings.

 

Free Marketing/Networking

Social networking is not just a “craze” anymore but a must. Communication is the highest surveyed button amongst consumers. Plus, networking can only increase the number of people who can discover you and see what you can offer.

LinkedIn – Professional networking, passing along tips, giving and getting referrals.

Facebook – Cocktail socializing, good to show how friendly and locally informed you are.

Trulia – Very popular real estate search site with consumers. Set up your own profile and virtually let MLS do the rest as it’s updated with your MLS info (you just have to “claim” your listings). There’s an advice area where you can answer questions and become the “one who knows and can helps”,
potentially picking up more business!

Zillow – Similar to Trulia site, so just set up a profile and away you go!

 

Free “Virtual Office”
(For those out of the office with clients most of the day)

Team Viewerwww.Teamviewer.com
Easy to set up, does not require anyone tech-savvy. It allows you 24/7 access your [office] computer files, applications and docs anytime and anywhere you have internet access. While out with clients, if you need to refer to something at the office on your computer, access it immediately from your smartphone or tablet (iPhone and Android compatible).

Dropboxwww.dropbox.com
An online “share box”. Allows you to you bring your photos, docs, and videos anywhere and share them easily. Never email yourself a file again and offers easy access for your Buyers, when they are not with you, to view your pictures of houses for sale, review docs, etc.
 
The above is by far not an end all, but, as a small family owned real estate and hard money loans company, it allows us not to spread ourselves too thin while accomplishing the reason behind social networking and internet marketing: make ourselves known to get more customers we can help!
 
Good luck with these.

 

Forest Tardibuono is a CA DRE Broker and the “Guy in the White Hat” – Your Hard Money Lender; Lynn Tardibuono is Realtor/Co-Owner and Flipper Chick of Sun Pacific Mortgage & Real Estate, family owned and operated in Sonoma County since 1988, servicing all Northern CA. www.sunpacmortgage.com

Make The Market Work For You Instead Of Desperately Working For It!

 

Getting the message out to Realtors and your clients about the current market good news, such as “You can sell your house for free with a short sale” and “equity sales are up 59%!” will only make you more money.

Like Mike Kelly of Keller Williams Realty stated, “By creating a bigger pie we all get a bigger slice!”. If you really KNOW what’s going on in the Real Estate market then you WILL become a “local economist” and get paid the big bucks…. As you will know how to drum up the best and most business!

Working in the Sonoma County Real Estate and Loans business since 1988, I’ve learned to “work the market” so that I can still be successful when the market changes. LISTEN TO THOSE WHO KNOW; LISTEN TO THOSE WITH THE ROUTINE SALES AND LISTINGS. Facts and Stats tell the tale BUT facts and stats also can lead to new tales of those who put the tips to use!

Proven TIP #1: Be a local expert by putting to use MLS and Market Metrics. Why not gain knowledge to get more in control of the market and make it work for you instead of desperately working for it?!

Review these facts, charts and figures presented by Mike Kelly of Keller Williams at the KNOW YOUR NUMBERS class on Thursday, September 6th. Share the information on your social sites, blogs, websites, emails, in your interviews with your clients. And then put it all to use! To access the power point presentation, visit this link:

https://www.dropbox.com/s/qdhmh2sv116rx4m/KWSept2012KnowYourNumbers.pptx

Proven TIP #2: Go out and find Sales. Let’s get down to brass tacks; It takes hard work, rolling up one’s sleeves and using those walking shoes to be a successful Real Estate Agent. There are an abundant amount of Buyers and a lack of inventory but there are loads of equity owned homes with potential sellers residing in them. By using MLS and Market Metrics find those with equity in the areas your Buyers are interested in and contact them – by phone, email or in person with a friendly visit!

My long time friend and Realtor has been doing just this the past couple of months and it’s going great! He has many Buyers and [new] listings. No short sales and no foreclosure messes means fast transactions for both parties. And he’s happy with the 4 houses closing escrow and a new listing he found from knocking on doors – last week alone!

Don’t sit around and wait for the market to change. Each of us doing diligent study of the local current market and then making this known and doing “dirty work” to get things going again WILL change the market for the better; Don’t just sit around – make more money for yourself and make more happy home owners!

Best, Lynn

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