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Why Do Most People Invest in Rental Real Estate?

May 29, 2019

Why Do Most People Invest In Rental Real Estate

With Spring comes an uptick in serious buyers looking to invest in property, each with their own agenda.  Among the most common reasons buyers will tell you that they have chosen this type of investment, five stand out as most common:

  1. Cash Flow: Buyers are looking for a monthly cash flow.
  2. Equity:  Buyers are counting on selling the property for more than they paid for it.
  3. Debt Paydown:  The tenant who will be living in the property will be the ones that are paying down the mortgage for you.  In ten, twenty, thirty years from now, you have a property that has been paid off by a tenant. You then own an asset that will still be producing income.
  4. Depreciation:  Buyers are able to depreciate the property for tax purposes (after consulting a tax accountant).  Being able to depreciate your asset over time is a big advantage in offsetting income.
  5. Appreciation:  This is the Big One! When all is said and done, the result homeowners are counting on above all else is Appreciation.  In the West we have seen an impressive appreciation over the past several years. Property ownership remains a major contributor to individual wealth.


When we think about the home where we grew up, and consider what it was worth thirty years ago, if we had kept it all these years, we would probably be very wealthy!

If you find yourself in a position that does not allow you to qualify for a traditional loan currently, consider alternative financing.  Sun Pacific Mortgage offers many programs that can make real estate investing possible when it looks hopeless. Our hard money loans are often used to purchase rental properties until a conventional loan becomes possible.  We await your call at 707-523-2099, we are here to help.

Why Are Millennials Buying Now?

May 21, 2019

Why Are Millennials Buying Now

A recent study of Millennial buyers examined the reasons they are choosing to buy a home at this time.  Here are the results:

1. To Control their Living Space – 93%

Many a renter has dreamt of painting their space to reflect their personal style. Some Millennials yearn for a pet they are prohibited from owning because of rental agreements. They have gotten to the place where they don’t want to wait any longer for these dreams to be fulfilled.

2. To Have a Sense of Privacy – 90%

Security has new meaning for everyone these days, so it is no surprise that it ranked #2 in this poll.  We all want control over who enters our home, and how we can secure it.

3. To Live in a Nicer Home – 81%

Similarly to point #1, when you purchase your own home, you can renovate to suit your style, as well as accommodate for a growing family or a member who may need to move in.

4. To Feel Part of a Community – 75%

Because your home value is linked to the community and neighborhood in which you live, owning is a powerful motive to engage in civic activity.

5. To Have Flexibility in Future Decisions – 53%

Rather than see their rent money increase the financial well-being of their landlord, Millennials are seeing their housing investment as a savings account that may be available in the future to support themselves.

The recent article in Keeping Current Matters  sums up the findings by stating:  “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons – including control of living space, flexibility in future decisions, privacy and security , and living in a nice home.”

It’s definitely a good time for millennials to get pre-qualified to buy a home. Locate your local, licensed and experienced Lender to assist you with this. Get out there any buy this summer!

As always, if you’re self-employed, turned down by the banks, or in need of special financing. Contact Sun Pacific Mortgage & Real Estate for a free consultation at (707) 523-2099.

The 2 R’s: Real Estate and Retirement

May 14, 2019

Real Estate And Retirement

More and more baby boomers are arriving at retirement age and are facing the question: “To sell or to stay?”.  A wise step to take at this juncture is to evaluate your home’s ability to adapt to your retirement needs. Below are some of the factors that a National Board of Realtors have suggested:

  • Affordability:  Would moving to a property with HOA dues offset the overhead of maintaining your own home?  Would your taxes go up or down? Would your monthly retirement income be enough?
  • Equity:  The equity in your present home may be enough to purchase your retirement home with little or no mortgage.
  • Maintenance:  As we age, we have less tolerance and stamina to handle the day to day maintenance a home requires.  Perhaps a condo with an HOA fee would be worth the peace of mind.
  • Security:  As we age, we are more concerned than ever about our security.  Having a gated community with 24-hour security can be a great comfort.  An extra set of eyes looking out for you can provide a much-appreciated sense of well-being.
  • Pets:  More and more rentals ban our pets.  This is another reason to own in retirement.  Consider your furry friend when making the decision about where to live.
  • Mobility:  While you may still be agile and active when you make this decision to move, keep in mind that down the road you might need assistance.  We hate to think of ourselves needing accommodations for our fragility, but it will make sense if the time comes. Consider the home layout and be certain it can adapt to your possible future needs.
  • Convenience:  How close do you want to be to family and friends?  The amenities you use most often should be near enough to make it convenient to access them without difficulty.

As you begin your evaluation, start with your current house and consider its ability to adapt as you age.  Then decide what course of action makes the most sense regarding your living situation in retirement. If you need help with financing, Sun Pacific Mortgage is here with alternative programs to assist you in purchasing or refinancing your dream retirement home.  Feel free to call us at 707-523-2099 with your questions and scenarios. We are happy to support you as you make this momentous decision.

Let’s Garden! Spring Has Arrived!

April 23, 2019

Let’s Garden Spring Has Arrived

After one of the worst winters in a decade, Californians are looking forward to a warmer, drier Spring.   Warmer weather tends to bring out the farmer or gardener in many of us…but where to begin? I for one love to garden and each week you can find me doing something to make my garden more full, better, more prolific.

There are many available sources outlining the best approach to initiate Spring planting efforts. One of the most well-respected informational resources is Sunset Magazine.  Before you dig into that first shovelful of soil, consulting theirs or another local trusted website, might be beneficial.  

It takes the Spring warmth and longer days to bring out the best in flowers.  In the North Bay, the peak blooming moment is sometime in May, but April is the month to get your garden ready to shine.  The gentle rain of Spring collects nitrogen from the atmosphere, and the warmth of the soil transforms it into bacteria that the plants use to thrive.  Unlike Winter, foliage takes a step back in the garden’s design, and instead, flowers reign supreme.

There are several maintenance tasks that should not be overlooked while you prep for new blooms.  You should tend to your azalea and camellia plants, even though they are finished blooming.  Pinch back the branch tips to keep them dense and promote more flowers next year. After the last blossom drops, you will want to feed them with a specifically formulated food through October.  Another advisable maintenance task is pruning lavender plants by cutting off 1/3 of the new growth to keep the plant from getting too woody.

April is a great month to plant just about anything…shade trees, shrubs, vines, annuals, perennials, groundcover and lawn.  There is just one warning to keep in mind: watch out for aphids, because they love new growth! You can find many organic products on the market to help control these hungry pests.

A little planning and preparation in April can bring great rewards in May and beyond for your inspirational garden!

As always, if you are looking for special financing or a hard money loan for one of your properties, Sun Pacific Mortgage & Real Estate is here. Maybe you need to make some BIG landscape changes, give us a call today for a free consultation and see if we can help with your financing! (707) 523-2099

How To Minimize Your Real Estate Tax Obligations

April 4, 2019

How To Minimize Your Real Estate Tax Obligations

“How can you best minimize your tax obligation under the new laws if you plan to purchase a home?”. This was one of the questions addressed in a recent article from House Logic, a National Association of Realtors publication.  It offered some very helpful information regarding tax-savvy home-buying, which is worth sharing because most people are concerned with the new tax laws and how they affect real estate investments.  

The new limit on allowable tax-deductible mortgage and property tax for a primary residence is $750,000.  Yearly, you can only write off the interest you pay up to this cap if you have taken out your loan after December 17, 2017.  If you have an older loan and you itemize, you can keep deducting your mortgage interest debt up to $1 million.

For those living in California, since finding a lower priced home is not always doable or desirable, another option suggested is to make a larger down payment, this way your mortgage doesn’t exceed the $750,000 cap.

Other one-time home purchase costs that are still tax deductible are closing costs, including real estate taxes charged to you when you close, mortgage interest paid when you settle, and some loan origination fees (points) applicable to a mortgage of $750,000 or less.  It should be noted that you will only want to itemize them if all your deductions total more than the standard deduction.

As always, any questions regarding your taxes should be answered by a professional tax preparer or your CPA.  This article is intended to enlighten you on just a few points included in the new tax law, which might significantly affect your real estate investments.

If you’re looking to refinance or invest in additional properties, give Sun Pacific Mortgage a call at 707-523-2099.  We are here to support borrowers unable to qualify for a conventional loan. As a hard money lender, we have helped thousands with less- than- perfect credit and those needing fast, cash-like loans.  If you have enough funding for a down payment and can prove you are capable of repaying the loan, you are a good candidate for our lending programs.

What’s New in Home Design for 2019?

February 12, 2019

What’s New In Home Design For 2019

A recent article based on the remodeling and design platform, Houzz, forecast some trends to look for in the coming year.  With HGTV shows continuing to capture our imaginations and wallets, we might want to know that we are in step with the design world.

Here are some examples of the forecasted changes:

  • Full-height backsplashes extending all the way to the ceiling behind open shelving and range hoods is one of the newer concepts being adopted in kitchen design.
  • Although Living Coral was chosen to be Pantone’s color of the year, the experts see moodier colors, like navy and forest green, as the shade of choice for homeowners.  People are becoming more comfortable experimenting with rich or darker colors.
  • Open spa-like bathrooms are making up 80% of the remodels according to Houzz.  Soaking tubs was the most popular option even if it meant stealing space from the closet or bedroom.
  • Moving from white to black kitchens is another popular choice for 2019.  White kitchens have made it difficult to keep clean if you have children and/or dogs, so remodelers are opting for the “tuxedo” kitchen with contrasting black cabinets and white walls.
  • Free-standing padded dining benches have replaced the built-in, more expensive benches of the past.  These new benches can provide flexible seating and hidden storage.
  • A four-wall accent color is replacing the bold-colored feature wall.  It even includes the trim and molding. This trend seems to be happening in smaller rooms, like a bedroom, study or media room.

These six examples of home remodeling choices are some of the possible options you may want to experiment with in the new year.  If you need funds to finance your DIY efforts, and if you do not qualify for a conventional loan, Sun Pacific Mortgage is here with a Hard Money loan to support your artistic endeavors.

 

Winter Brings Out The Serious Buyers

January 22, 2019

Winter Brings Out The Serious Buyers

If someone is out looking for homes in the winter season, it is usually a sign that they mean business.  So how do you, as the Seller, take advantage of this available market?

Start by making sure that the exterior of you home is as warm and inviting as the interior.  Bare trees make for a more exposed home, so freshen up the outside of your home by keeping the gutters clean and sprucing up the yard.  Keep those leaves raked and the lawn alive.

Price your home to sell.  Rather than gradually making small price reductions, which could make you look desperate, get with your local & experienced Realtor and properly price your home before you list.  This strategy encourages multiple offers! It’s far better to have your buyers competing over your property than having you going back-and-forth over the purchase price, with your prospective buyer.

Remove most or all (if possible) of your personal décor.  Staging is one time when the maxim “less is more” should be the watch word.  If your living room area is a small space, arrange your furniture so that there is ample room to maneuver through and around the room.  Group your furniture into conversational zones to make your home feel cozy and inviting. Don’t be stingy with the heat during showings.  A warm, pleasant smelling house can go a long way toward influencing your prospective buyers. Crank up the heat, bake some yummy cookies, play soft music, burn scented candles, etc. to set an ambiance that makes your buyer want to move in.

As “Winter Sellers” you enjoy an enthusiastic audience with “Winter Buyers”. These prospective clients would not be trudging around in the rain, cold and wind if they were not ready and willing to make an offer on the right property!  Make your home the property they want by listing now and following the suggestions above on presenting your home in the best possible winter light.

Hope this helps get you that fast sale!

Is it Still a Seller’s Market?

December 19, 2018

Is It Still A Seller’s Market

Looking at the real estate market today can be very confusing.  Some experts would have you believe that we have left the “Seller’s Market” behind and have skipped right over to a “Buyer’s Market”.  Not so fast! If we examine some of the statistics related to the Bay Area, we find that there remains only a 2 month inventory of homes on the market.  That is the very definition of a “Seller’s Market”.

The one thing experts do agree on is that It requires 6 months of inventory to become a “Buyer’s Market”.  Other statistics that confirm the “Seller’s Market” label include the number of days on the market, price decreases, and sales over asking price.  As an example of these criteria, let’s look at one of the Peninsula cities, Burlingame. Days of the market averaged 27, average sales price was $2,537,578 (in October was $2,556,152), price received was 5% more than asking.

These numbers are typical of the what we find in San Francisco and the rest of the Peninsula.    From 551 active residential properties on the market in San Mateo County, 29% of properties had price decreases and 32% properties were on the market 60+ days.  While we aren’t seeing the wild and crazy days of the recent past, we could be on a slow climb out of the present market and into a Buyer’s Market.

Bottom line?  If you have been thinking of selling your home, now is the time to do so to get top dollar and find your next new home.  Looking for financing and don’t qualify for a conventional loan, look no further than Sun Pacific Mortgage. We are here to offer you a Hard Money Loan, which will allow you to get into your next home quickly with a minimum of stress.  Give us a call at 707-523-2099 and see how we can help you!

Selling Your Home in Today’s Market

December 10, 2018

Selling Home In Todays Market

It is never a fun adventure to sell your home, especially while you’re still living in it.  And in today’s market, where multiple offers are not the norm they once were, it is even more important to observe some basic rules.

Keep your home pristine!  Not just “picked up”, but sparkly clean.  It should look like a model home where no one lives.  I know this is well-nigh impossible, especially with kids in the house, but it’s worth some effort.

Pay attention to your yard.  There should be no leaves, no weeds, and no spider webs in the corner of the porch or patio.  Spruce it up with some colorful plantings, even in the winter.

Leave when you have showings.  That means pack up the kids and pets and just drive around, if that is what it takes to clear out of the house.  There are legitimately people who are allergic to or fearful of dogs or cats and may not even enter the property if they are present, so it is important to take them with you.  Otherwise, you may lose a potential buyer!

You may get a ridiculous offer.  Don’t be tempted to give away the farm to clinch the deal.  Remember you’re just selling your house. Be open to negotiating, but don’t allow desperation to cloud your judgement.

These ideas are meant to make selling your home an easier process, one as painless and as fast as possible while still getting the most money for your house.

If you are not working with a licensed Realtor, contact one from a local real estate company.  And if you are considering buying another home in California, then contact a licensed and experienced Lender who can help you take advantage of any existing home equity to purchase another home prior to selling your current house.  This could be beneficial to you and your family.

Good luck to you!

Where Is The Real Estate Market Headed?

November 14, 2018

Where Is The Real Estate Market Headed

What’s one to believe about the real estate market today?  There are so many conflicting headlines that even the savviest investor is confused.  Let’s look at some hard statistics which may enable us to come to our own rational conclusions:

We know home prices have appreciated year-over-year for the past 76 straight months.  Does this mean we are on the edge of another housing bubble? Not if the lack of homes for sale persists.  Demand is strong as many renters have experienced when they start to look for their dream home. There hasn’t been the stabilizing 6-month backlog of housing inventory in over 5 years, which has kept prices up while inventory has been down.

What about pricing and appreciation?  Certainly, home prices have appreciated over the last 76 months, driven mainly by supply and demand.  This has affected the starter-home market more than any other because of the increased competition for these homes. Senior Economist, Aaron Terrazas wrote on Zillow that “home values are still expected to appreciate at double their historic rate over the next 12 months”.  This wouldn’t appear to herald a real estate crash any time soon.  

Those who have been in real estate for as long as we have can all agree on the fact that real estate ebbs & flows.  Keeping abreast of the market in your area is what is important, so you can decide if the price is right to buy now or if you make an offer slightly under asking to still get an accepted offer.  What about listing your home and for what price? These are questions to be posed to licensed and experienced Realtors who know the market and have your best interests in mind.

Here’s to making the real estate market work for you!

To read full article:  https://www.keepingcurrentmatters.com/2018/08/29/top-3-myths-about-todays-real-estate-market/

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