Location Location Location-Happy Thanksgiving

Hey Rebels!





I'm taking it slow this week and enjoying the last bit of my vacation, but I did want to wish everybody a Happy Thanksgiving and extend my best wishes to everybody as the holiday season kicks off!



Take a look at this place-gorgeous! Unfortunately, it's on a volcanic island I recently visited, and all the water has to be collected from rain and stored in underground cisterns. Now THAT is Green Architectural design!

I'll be back next week with the kick of for December's tips, tricks, rants and raves!

-Larry

Where are the refinance operations?

Well well well, the banks are making money again.
( http://www.cbsnews.com/stories/2009/07/17/business/main5167450.shtml )
OF COURSE THEY ARE, we bailed them out.

Remember that? The banks were failing, not just because of toxic assets, but because they made some bad decisions and then some more bad decisions, then they didn’t have the money to cover themselves, but we, with our tax dollars, propped them up and injected financing and kept many of them afloat.

But we did that for a reason.

That reason was mostly to help the American homeowner who, with the economic slump, was struggling with house payments, going into default on their mortgage, and getting evicted from their homes.

So those banks were supposed to do something with that cash infusion. They were SUPPOSED to start lending it again, and to work out refinance arrangements with the people struggling with mortgages.

Now, I’m in the San Francisco Bay Area, and while I’ve seen a lot of new bank signs going up to replace the ones that came down-basically the winners of the government give-aways replacing the losers, I’m not seeing that there are a lot of refinancing operations going full steam. I keep hearing and hearing and hearing stories like I’ve brought up here, poor customer service, refinance departments unavailable or not returning calls, etc.

So I just have one question-when do the banks take some of the money that they’re making again and do the job we-you and I and the other tax payers-have paid them to do?

Anyone?

Anyone?

Hmmm.

-Larry

November's Rebellious Buyer's Tip-Lower Rates, Higher Rates...Survey Says?

Ok, I think you all know my mantra about not waiting around.

But I'm going to repeat it. And repeat it. And...well, you get the idea, I'm sure.

Rebellious Readers, both you ladies and you (relative) gentlemen, I keep getting the same question from those of you out there who are on the investment side of things. It's some version of this:

"Larry, what's going on in the Bay Area foreclosure market? I've found a place I'd like to buy, but if I wait, there might be a better rate in a couple of weeks. Should I buy now or hold off for a bit??"

First, a reminder. NOBODY has a crystal ball. After all, who could have predicted Britney Spears making a decent comeback?

But I gotta say, that while rates did dip a bit in October, they seemed to climb right back up again shortly. AND, if you know what kind of buyer you are (see my posting from last month about that), then a quarter-point here or there doesn't matter much in the long run. Because remember, we're talking about real estate and short sale investments in the San Francisco Bay Area, and we're thinking about it REBELLIOUSLY.

So, assuming you DO know what kind of buyer you are, then we're talking about having found a place that you either want to hold onto for awhile, or want to turn over quickly, or want to move into. In any case, what your rebellious line of thought should be is:

"Can I afford the payment and still get the kids through college?"

Or maybe, "Can I rent it out and afford the payment for as long as it takes for the economy to rebound, whether that's one, two. or ten years away?"

Because whatever the rate is, is what it is. And if you buy today and the rate drops in a few weeks, maybe you'll be kicking yourself. But YOU WILL ALSO KICK YOURSELF IF YOU DON'T BUY AND THE RATE GOES UP AND/OR THE PROPERTY YOU WANT IS GONE.

Please, my Rebel Alliance, remember that what might go down might also go up, and it's all about what you can afford today and for your foreseeable future. I have met many many many more people unhappy about not having done something in California Real Estate than I have met people who regretted having taken action. So if you're going to play the odds, play the ones that land you a property TODAY at a price that fits both your budget and your buyer type.

Yours Rebelliously,
Larry

BTW-for those who don't know, I'm actually on vacation for a bit, even though I'm still keeping my ears and eyes out in the SF RE scene from away. If you're Facebook users, look me up and add me to your Friend list for pictures and stories from the Mediterranean Cruise that I'm on. But remember...what you see on Facebook STAYS on Facebook...

November Seller's Tip-Don't Forget Curb Appeal!!!

I know, I know. Why am I blogging while I'm out of town? Isn't a vacation for PLAY, not for work? Easy answer-this stuff is fun and I like what I do. Plus, while I'm waiting for the Bonine to kick in I'd rather have something to focus on...

Like the basics of home selling.

Look, it's not particularly novel or even very rebellious, but it seems that in this market people have moved away from even the basics of putting a home on the market. Even if you're in default and you're hoping for a quick sale to get out from under your mortgage but don't have a lot of cash, you can still do the basics and keep your house in tidy shape.

So do this-

Step outside and go to the other side of the street, and look at your house. Imagine that you DO NOT KNOW anything about the place other than what you see, right there and then. Forget that the lawn is a little shaggy because the kid who mows it is down with swine flu, or that the reason the plants are a little bedraggled is because budgets are tight and you understandably don't have the time to just blow time and money at Orchard Supply any more. Just look at what you see-and really really SEE it from a stranger's eye.

Now, if the first few things you see are negatives (lawn, plants, dirty windows, etc), then I guarantee you that the first thing a potential buyer will see is one of those exact same things, and there are good odds they will go from a potential buyer to a definite NOT-buyer. Even if they overlook a few small things and consider making an offer, you can bet that any deferred maintenance will be brought up as a reason for a lower-than-expected offer amount.

Understand that I'm NOT saying you have to put a lot of money into your place in order for it to sell. If you had a lot of money for a remodel, you wouldn't be looking at a possible foreclosure-it's a catch-22 that I understand well. What I AM saying is take a good hard look and make sure that what CAN be done HAS been done. Is the yard tidy? Is the fence in decent repair? Are the windows clean? Are the blinds open/closed/clean looking?

All of these things can make a huge difference in the initial impression a potential buyer will have of your property. And every one of them can be done without a huge investment in landscaping, painting, or remodelling.

Do what you can, my rebellious readers!!!
-LARRY