U.S Housing Market Experiencing One of the Most Dramatic Shifts in its History

October 18, 2022 Ari Walker

Even Federal Chair, Jerome Powell, went so far as to call it a “difficult correction.”

While the speed and breadth of the slowdown have some Americans worried about a repeat of the 2008 housing bust, John Paulson, the hedge funder who famously pocketed $4 billion betting against the U.S. housing market in 2008, is among those who believe history isn’t repeating itself.

Paulson believes that the underlying quality of the mortgage industry today is far superior to the subprime mortgages that flooded the market in 2008. Thanks to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the stability of the U.S. financial system and the quality of our mortgages is ensured.

As a result of this act (CFPB), banks and financial firms are not highly leveraged. This phenomenon would be seen as unacceptable in today’s market and this law prevents banks from making specific types of risky investments.

At Sun Pacific Mortgage, we adhere to the Dodd-Frank regulations. Any loan is thoroughly screened and only those who have sufficient equity and proof of the ability to repay the loan get presented to our team of Investors.

If you are looking for a profitable return on your investments in these uncertain times, give Sun Pacific a call at 707-523-2099 to discuss becoming part of our team of private investors, or visit our website at www.sunpacificmortgage.com. We have been engaged in private lending to Californians for 34 years and are one of the only private lending companies that still offer owner-occupied, consumer purpose mortgages.

Sonoma County May Real Estate Status

May 17, 2022 Ari Walker

Analysts, Economists, and Industry Commentators have much, and sometimes divergent, opinions about the present and future of real estate in Sonoma County. They all agree, however, that sales data in the coming months should provide more concrete indicators of the market condition.

The experts have commented that when hot markets shift to cooler, the effects are typically reflected in reductions in multiple offers, overbidding, and the number of homes going into escrow. All these realities result in less appreciation, but historically, over the longer term, real estate remains an excellent and robust investment.

The monthly median home price, 6-month rolling average proves the point:

The average days on the market typically ebb and flow seasonally with spring often seeing the highest demand. Spring 2022 has just seen the lowest average days on the market ever recorded.

The combination of quickly rising prices and the fastest mortgage rate increase in over forty years is going to affect purchase demand. As this phenomenon occurs, the private mortgage business picks up steam. Using this avenue of financing allows otherwise ineligible Buyers to get into the real estate market and profit from the appreciation which continues to rise.

Sun Pacific Mortgage, a family-owned and operated business located in Sonoma County, serving all of California, has been in the Private Money Mortgage business for over 34 years with impressive results and loyal, appreciative clients and investors. With our year of experience, we can close escrows in as little as a week. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to investigate the loan programs we have available in funding purchases and refinances or how we can help you start increasing your wealth. We look forward to your call.

What a Difference a Decade Makes!

February 4, 2020 Ken Walker

Just ten years ago, many homeowners were desperately trying to hang on to their homes. Trying to sell a home was considered a nightmare. Buyers were having a struggle to find a financial institution that would lend them the money to purchase or refinance a home. Thank heavens that is all behind us!

The fundamental landscape of American real estate has changed in many ways. This phenomenon is especially evident in California where more people are moving out of cities, and Millennials are replacing the Baby Boomers and Gen Xers as the dominant buying forces. One constant has been the lack of homes for sale making it difficult for buyers since 2015. Even if home construction increases slightly, it still won’t be enough.

Buyers are done with “overpaying”. This has happened already in major cities like San Francisco where housing prices have skyrocketed and driven many to more affordable locations, even if it means increasing commute times.

By the middle of 2020 the oldest Millennials will be turning 39, and it is predicted that they will account for more than 50% of the mortgages taken out in the country. Millennials are going to be a big factor in the homebuying industry because it is at this age, that they begin to think of having a family and are more motivated to become first time home buyers.

Sellers of entry-level homes should be very happy in 2020, because these homes will continue to be the most in-demand properties. Higher end sellers should be mindful of the competition and price their home competitively if they don’t want their properties to sit on the market for extended periods.

While we are all enjoying a healthier real estate market, compared to the one we suffered through a decade ago, we still have our issues: lack of inventory, construction restrictions, and over-priced homes. But, as with all good (and bad) things, it too will pass.

The real estate market has always been cyclical and the 2020 prediction is that real estate values will continue to increase, overall making it a good time to sell or buy!

Simple Ways to Make Your House Smell Like the Holidays

December 10, 2019 Forest Tardibuono

Several behavioral studies have demonstrated that smells trigger more vivid emotional memories and are better at inducing that feeling of “being brought back in time” than images. Never is that more apparent than during the holiday season. Winter holidays would not be the same without the warm, cozy scents of the season. How can you incorporate this memory inducing phenomenon? Here are a few suggestions from the experts:

Fresh greenery: Wreaths, garlands and arrangements filled with winter foliage. You can add to your sensory experience by adding sprigs of sage, rosemary or pine into your centerpieces at the table.
Make pomander balls: These are citrus fruits pierced by whole cloves, creating a great smelling decoration. They are believed by some to bring strength and fortune…something we can use during the holidays! To make these, use any firm citrus such as oranges. Carve a design into the skin of the fruit using a vegetable peeler. Poke a row of holes into the fruit with a toothpick to make you design. Push the cloves into the holes and place the arrangement in a bowl to be used as a centerpiece.
Light a scented candle: This a simple way to bring home a sense of the holidays. Choose a favorite scent and keep it consistent throughout the house…even the bathroom!
Simmer a pot: A quick, easy way to fill your home with delightful seasonal scents is to simmer a pot with water (or use a slow cooker) and fill it with orange or apple peels, cranberries, nutmeg, cloves, and/or a stick of cinnamon.
Bake some treats: There is nothing like the delicious smells of gingerbread, apple pie, or sugar cookies baking in the oven.
Essential oils: Add essential oils to a bowl of pinecones. Unlike burning candles, essential oils are safe to use round the clock and provide a continuous mood-enhancing aroma.

Have a memory-filled holiday season enhanced by the many scents of pine, cinnamon, cranberry, and gingerbread. And enjoy with friends and family!

Furniture Arrangement Matters

November 25, 2019 Ken Walker

It is important to consider the use of the space when designing furniture placement in a home. Be it staging a house to sell quicker or catch a higher purchase price; How about setting up one’s home for better comfort and entertainment.

Furniture makes the room, but the placement of the furniture matters just as much as the individual pieces. Placement sets the mood of the room and signals the overall tone. To state the obvious, too many pieces of furniture in a room can cause the layout to feel cramped. For instance, if when entering a room, you immediately walk into the back of a chair or sofa, the space will feel closed off and uninviting. Each piece of furniture should have its own space to breathe.

Pathways within a room should feel natural and provide the best flow within the room as well as between rooms. Space between the sofa and coffee table, as well as the sofa and an accent table, should allow room to walk around. This placement will make the room feel much lighter.

Strategic placement of seating in the TV room is paramount for optimal viewing. With that in mind, place your couch parallel to the TV and angle the side chairs on each end with a table available for drinks and food.

Balancing the weight in the room is an easy way to create visual flow. Too many chunky pieces (e.g. sofas) need a more delicate coffee table to help the room from becoming too heavy. Pops of color and similar shapes are other ways to tie together the look of a room.

In the bedroom it is best to focus on maximizing comfort and functionality. For instance, it should be easy to get in and out of the bed, even in the middle of the night, without stubbing your toe on the dresser. Additionally, there must be enough space to fully open dresser drawers.

The dining room should have enough space to circulate around the table comfortable for food and plate delivery. And there should be enough space to get in and out of chairs comfortably.

Measuring your space before purchasing a new piece of furniture is advisable in order to save yourself heartache and money. Otherwise, that sofa you fell in love with, in the store may become a decision you regret for a long time!

What’s New in Home Design for 2019?

February 12, 2019 Ken Walker

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.

How To Significantly Increase The Value of Your Rental Property

September 27, 2018 Ken Walker

One of the best ways to insure the value of your rental property and increase your cash flow is to maintain and manage it well. As a landlord you should be vigilant that your property does not depreciate because of your inattentiveness. Markets may fluctuate, and while this is something you don’t have particular control over, you can ensure that your property does not lose any value because of neglect.

Here are some time-proven and relatively low-cost improvements that should increase the rental value and rentability.:

Landscaping Refresh:

If the prospective renter sees a tidy, colorful front yard, it helps sets the stage for a more positive reaction to the interior. A new mailbox or a freshly painted one can be a big plus.

Thorough Cleaning:

If painting the entire house is financially prohibitive, a good scrubbing inside and out will go a long way to say “this landlord cares”. In particular, making sure the front door is welcoming and fresh. A newly painted door gives the impression that you have renovated the house for the next tenant.

Clean the Floors:

Cleaning the rugs, either by yourself or professionally, makes the house smell clean and will have an impact on the overall appearance of the home. Any repairs required of other types of floors, regardless of cost, shouldn’t be ignored.

Appliance Upgrades:

One of the most important aspects considered by a prospective renter is the kitchen, and more specifically, the appliances. If a good cleaning doesn’t bring them up to par, replace them! It will get you a better renter and a better price. The other room where you don’t want to spare any elbow grease is the bathroom. Tenants appreciate an up-dated, clean and bright bath.

Now that we have examined the extensive “To Do List” for attracting responsible renters, let’s take a look at how you will finance these improvements.

The first avenue would be to look into a conventional loan or home equity loan, but if, for whatever reasons, you do not qualify for a conventional loan, consider a Hard Money loan from Sun Pacific Mortgage.

We have been in the business of hard money refinancing and lending for investment property owners for over 30 years. Please call us at 707-523-2099 with any of your questions or scenarios.

Make More Money With Your Investments

September 4, 2018 Forest Tardibuono

Any time your money makes money with little time investment on your part, it’s a good deal. That is the bottom line when we speak about investing in Hard money trust deeds. Here at Sun Pacific Mortgage, we find the opportunities, vet the borrower, and confirm the legitimacy of property ownership.

In today’s unsettled financial world, trust deeds are an investment many are finding very comforting. You, the investor, can count on a steady income without the headaches and hassles of actual ownership. It is highly recommended that you have a trust deed servicing company work with you to ensure your investment is safe and your monthly interest payments come in.

Speaking of interest, when you invest in one of our hard money loans, your interest rate will be somewhere between 9% and 13%, depending on the various factors influencing the loan package. It would be difficult to find this type of interest rate on your money anywhere else in today’s market.

Sun Pacific Mortgage has had 30 years of experience in this business and we know a good deal when we see one! Give us a call at 707-523-2099 to get further information about investing in deeds of trusts with us. Find out what we can do for you to find a home for your hard-earned money.

Sonoma County Real Estate Update

August 31, 2017 Forest Tardibuono

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/

Revitalize That “Dead Loan” With Our Not Normal Loan Programs

August 24, 2017 Forest Tardibuono

This year so far (January through July) we have closed 142 Hard Money Loans – 20+ loans per month. Loans done so far total over 45 million. These not-normal programs have much more forgiving qualifications than traditional financing.

Regularly we have Brokers and Lenders reaching out to us with a transaction they are hoping to have rescued. They want an interim approval and funding while their client gets fully qualified to refinance with them.

We had a Lender contact us about a Borrower he could not get approved for a single-family investment property. They qualified in all aspects but, unfortunately, they had another property which had incurred some late-payment penalties.

This is where we come in with our not-normal, hard money loans programs. In 2 weeks, we had this scenario approved and funded! Relieved Lender and happy Borrower.

If you are having difficulty getting a particular loan scenario approved, call us at 707-523-2099.

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