411 for my Peeps

Hi there!!

I'm doing an introduction type blog for everyone I know, to share a new adventure of mine!! Most of you know, or maybe we haven't spoken in a while....but I purchased an REO (bank owned) property this year (January 9th was my closing date). I had some savings available to me and was concerned about Money Markets etc and their decline...as well as the stock market, so I started poking around in the real estate arena just to see if I could actually BUY something in CA. Unfortunately, with the economy, a lot of homes are abandoned or repossessed..... but it puts them on the market at super affordable prices for people like me and you!


So the break down for how it worked for me was this:

Pre-qualification is key....I went to a bank that did a cursory pre-qual(they kind of guessed based on what I told them=bad) which really put me in a pickle because I THOUGHT I could afford more than what turned out...so I had to back out of researching a bunch of homes I was interested in. A legitimate pre-qualification will run your credit....and use a formula of debt-to-income ratios. In the end you balance out how much you want to spend a month with what you can afford. Your payment = Total loan amount that puts you there.

So today, you can get into a conventional loan with a standard 20% down payment, OR a government FHA loan with a 3.5% down payment. There is a daily change in what programs are out there...so I'm not here saying I know what might be available tomorrow. I have some financial wizards in my office that will take some of your time, and plug your numbers into a calculator....super painlessly....and tell you where you stand. It's a good piece of knowledge to have, AND....you'll know what’s happening on your credit, your strengths/weaknesses and what your goals could be!?!

Wait...she just said "my office". Yeh...well most of you know I have my Real Estate (RE) license right? Well the people I met while purchasing MY house, were amazing. Jayme and Woody the Super Couple!!! Jayme ran around and showed me houses until we could both barely walk....and Woody has 34 years plus in the industry on both Lending and RE, so he was the paperwork master!!! I thought...wow, if I could run around and show houses like Jayme does...that would be ideal RE for me. Woody wants to do all of the hard part!!! Haha. So I renewed my license and joined their team!!

Working with a great team that specializes in REO properties exclusively makes the search pretty streamlined!! It’s SUPER important to know how this works, or it can be difficult to manage the transaction. You're not buying from an owner....in REO's you're buying from a bank that have a few levels of people below them that need close attention to keep your ball rolling. ;)

They set me up with a service that sent me 5-20 homes new on the market per day. It's pretty cool....I got to log in and tweak the settings and I can earmark the houses I liked and they would set up showings for me. Also I would search the Multiple Listing Service on the "non-licensed" side. Here's the link www.socalmls.com drag the map around and put your requirements in. You'll need a realtor to let you into the homes, which is where I can help you of course.

There are several types of homes on the market for sale....

Bank owned REO's: being the premier market for buyers right now.
Owner-occupied: which means someone still owns them, and your response time and bargaining will be easier, but the price is generally a lot higher.
Short-sales: which is something that I steer HUGELY clear of. Short sales are simply this: An owner before foreclosure gets the bank to agree to sell the home for less than what is owned to prevent foreclosure, so some agents list the house for a random amount to get a few offers. Once more than 2 offers are submitted, an asset manager from the bank that holds the note comes in and determines the value of the home and also what is owed on it....and then they counter offer the first person and down the line. The response from the bank can take 3-6 months and is usually wayyyyyy above what you hoped to spend on the house. This is my experience....and believe me, it's frustrating. I know a few people that bought short sales before this economy and did okay, but today seem to be a different story. http://en.wikipedia.org/wiki/Short_sale_(real_estate)

Back to REO's!! Here's how this works: With these you're dealing with the bank on your purchase and, surprisingly...there are a lot of buyers!! I must have looked at 30 houses, and written offers on half of them being repeatedly beaten out. I learned a lot the hard way ...the bank owned homes aren't above market so you have to be prepared for full price offers. Owner occupied listings usually price high and bargain down....REO's usually do the opposite (unless they see the house sitting for a long time). Most of the active homes I was involved with were new on the market. They had all of the "essentials" I wanted...and man, 15 Realtors would be through the door the first day!! (My competitive side was of course in full swing)

There are houses that sit, some due to repair issues....some are tear downs; some are marketed wrong (which is where I found mine). There's something for everyone out there!!! Be aware that to finance a home you'll need to meet certain guidelines of "livability", kind of like a salvaged title on a car...banks loan to guidelines!

Overall, banks want the houses sold so; they list it at fair market value and get the best offer in and through the process. Oh and the process isn't always quick. Be prepared to be tied up in the process for 15-45 days. Sometimes they sit on your offer, simply because they are completely overloaded with REO's...and sometimes it's due to a lot of offers. My team shows you how to be the sparkling gem at the top of the pile ;)

So why go through the grief?

Well....my house is already "in the black". I could rent it out today and go live at the beach and maybe even pocket some cash....and that was with 3% down!!! (Last year FHA was 3% down).

For first time buyers....you're going to get the stimulus money around 7k!! I'm not a first time buyer...so I didn't get it, but man....7k back??? I wish I could have. It's not a loan, it’s a gift! (Well...it's a govt gift haha) This runs until November this year!! I'll make sure you're lined up for it. ;)

This is the lowest CA will see for RE pricing...and yesterday (when I looked)....the rates were below 5% on a PURCHASE!!!! That’s insane!! My mom was selling houses at 18%. Sub-5 is a dream. So low housing prices...and low interest rate is an open window for us.

Homes are ALWAYS a good investment. Good or bad market my opinion stays true....it's your retirement and your biggest asset. Just make sure you can afford it!!

Homes are a fabulous write off = more money into your check a month, and more money back at the end of the year.


So in conclusion...yes I'm finally DONE....if you're even slightly interested....I might be able to answer some of your questions. There are a ton of misconceptions out there....and not only am I offering the business now...I just went through it, so ask me some questions!!

I hope to talk to you soon!!

Kelly

The Peleton of Youth

I had this amazing flu....and I hate to use the word amazing for something so dismal. This flu was pretty interesting tho...and sometimes I believe they are evolving and finding new ways to inflict their germy goodness upon us. I had the full gamut, and of course an impending weekend of plans. The boyfriend was getting older....well he is getting older daily, as are most of us...but instead of the typical dinner and drinks we invited a group of crazies to mount up and ride to San Diego. I've done this ride on a whim....so it's not impossible. It's challenging enough tho, and with this group it certainly wasn't forgiving (20+ mph the whole way). I played chase car to help with flats, transport libations, and pick up weary riders. For the birthday boy it was a 75 mile feat....and I think he was feeling it a bit in the end. Good friends and good fun was had...I can't wait to do it with them this summer.

Things to know about me....

Age: 36.1

Sexual Orientation (gotta ask, nowadays): Straight....not that there's anything wrong with that.

Ethnicity (or ethnitown): Whitey, cracker, the man, definitely the woman.

Occupation: Hot Dog on a Stick Cheese Melting Operations Manager and Logistics Coordinator.

Preoccupation: Lying about my job, my life, my sex life, and my hat size.

Do you own a pet? She lives here...ownership is questionable.

Does, as in my case, your pet own you? I work to keep her happy apparently, shes so nice to allow me a corner of her house to live in.

Do you smoke/how often? Nope

Do you drink/how often? Not much these days...

Do you fart/how often? Whenever I can, though not in public. Wait, I mean ONLY in public. Wait...

Any drugs? Nothing that keeps me drugged up enough to stop doing these.

RELATIONSHIPAL:

How long has it been since your last relationship? I feel a burning sensation when I attempt to answer this. ;) I'm in one....or it's in me...hold on this is a family forum.

What type of relationship/how long? (long-term, casual dating, friends with benefits, et. al.) There are TYPES now??? Crap I really need the acronym handbook....I'm terribly un-hip.

What are three physical qualities you look for in a man? 1. Nice hands 2. Both eyes 3. Nice teeth

Now three mental/emotional qualities: 1. Intelligence 2. Humor 3. Passion

If you are looking for a long-term relationship, why? I use to claim temporary insanity or I'm having trouble making bail. Now I think it's just easy... so I enjoy it.

What would be your idea of a perfect first date?Something that didn't end up in a clinic. (ha)

What would be your idea of a not-so-perfect first date? Something that ended up in a clinic.

How far have you gone on a first date (and I don't mean, like "San Luis Obispo")? San Diego is further

PERSONAL:

What's your favorite type of food? Cali Cuisine and French

Favorite animal? My cat and horses :)

Favorite drink? Whiiiiiiiiiiiiine

Favorite restaurant? Upscale: Maestros Downscale: Citrus City

Favorite author? Lately its been Koontz...just for entertainment factor. Besides I don't think they are still putting out Garfield books...so I'm screwed there.

PROUSTIAL:

What do you regard as the lowest depth of misery? PMS on a full moon and no chocolate in the house. That or anything I have to push my bike UP. I looooooaaaaaaaaaathe HAB.

If you could live anywhere, where (and how) would you like to live? Pilots lis and a water plane. (unlimited cash too pls)

Who are amongst your favorite characters in history? Mostly scientists or great composers. However...just because you ARE a character...does not mean you HAVE character. Never forget that.

Who is your favorite painter? Picasso.

Who is your favorite musician? Dave Matthews

What would be your favorite occupation? Horse breeder/trainer

And, finally, and perhaps most importantly so REALLY think about this one... I mean REALLY... Ready? You sure? This is a BIGGIE! Could be a deal breaker... Okay... You asked for it... Here goes... What's your favorite freeway? The 73.

Stuff I've Learned (The compilation)

Grown women stop being BFF's somewhere down the road, and the realization of that stings a little.

Sometimes people GROW away, and that is part of life.

Past the age of 30 being codependant and having feelings of "abandonment" are not acceptable.

The majority of my closet consists of what I like to wear as opposed to what others would like me to wear.

Serious health problems get worse as you age, but they help decipher true friends from fly-by-night ones.

I really am a good friend to men, even when it means nothing more than friendship.

I can climb a bigger mountain, and go one mile further on my bikes than I ever believed I could or would.

I look back a lot, it inspires me to look forward more.

Cars should only cost you the bare minimum to own, and you should work it out so you have what you want for nearly nothing., and be prepared to get rid of it in 3 years.

My Honda Element is way cooler than the Tahoe or Corvette or anything else I've been privy to in my life.

Cats aren't so bad.

Tread lightly in life, its VERY FRAGILE.

Friends can break your heart, sometimes you just have to know how to say enough.

Sometimes you walk away for a reason, and its not good to ever revisit ...even if it hurts.

Some people you're past the point of "never talking to again" because they are family and always will be.

You can't pick your family and you can't change them either...deal with it or go to Hawaii for the holidays.

Have boundries for yourself and make sure they are respected.

Sometimes don't say what you feel...sometimes they should figure it out for themself.

Consider those who love you, always appreciate it....and give it back as fully as you know how.

It's ok to be afraid, sad, tired, spaztic, nutty, happy. Just be sure to feel.

Say yes more than no to things you've never tried....and no more than yes to things that take away and do not give back.

Find a man/woman who holds your hand too much. Who doesn't hang up before you, and who can take the good with the bad. They do exist.

Exercise every day, not for vanity, for your health.

Eat a lot of yogurt....they say most of your illness is in your lower intestine, and I haven't been sick all year.

Give to charity, let someone in front of you, pick up trash, offer a hand. Thats the best form of positive karma I know...who's have thunk GIVING feels so good?

Live green.

Eat better, cut sodas, fewer ingredient foods, more color, less process m nothing packaged and ALL before 530 pm.

Laugh.

Learn to laugh at yourself...regularly.

BE spiritual, find your center and learn to feel what's going on around you.

Find a way to be truly nice.

Practice Karma. Turn your negative to positive....if someone tried to wreck your day, compliment them genuinely before they end their sentence. It's a great way to make a huge change.

Exercise and rest. They are vital to life.

Sometimes being single is not such a bad thing...sometimes once you've tried it all, it's time to give it a rest.

Never flake without making sure your side of the bargain is held up. Then do what you have to do, if you must.

Be available.

Be unavailable.

Dating is discriminatory, it's sampling...and not always will it work out.

Seek therapy when you don't have the tools to fix your problems, but don't be afraid to tell the doc they don't know what the hell they are talking about. Some just don't...

Don't fight if you can avoid it.

Listen.

Don't be afraid to be happy to see someone and make sure you show it. (unless it can get you arrested)

See new things, try new foods, go to a concert as often as you can.

The thing about drugs are most hurt you more than they help. If there is a way to stop taking them....then do.

Try to see a sunrise and sunset in the same day at least once a year....it will stick with you.

Spend time around the ocean, in the ocean, on the ocean, and beneath it...your small existence will find perspective.

Breathe hard, sweat much, find failure to find success.

Try.

Just because you couldn't do it yesterday doesn't mean you can't today.

There really are only six degrees of Kevin Bacon.

My Bucket List.

I think about stuff I want to do before I die....

1. Ride across Catalina on my mtb and camp. Seems simple right???
2. Take a month off and just go somewhere...random...with my car, kayaks, bikes, snorkel and camping gear.
3. See Tibet, and do the basecamp mtb ride they do.
4. See France, Scotland, Australia, Italy and places that once housed several ex-boyfriends HA. (alright let it go)
5. Fly in a water plane somewhere remote....land on the water in a tropical sunset and throw the floaty raft out the door and just sip a pina colada while the sun goes down (then get the hell out of the water before I become shark food)
6. Pilot a Helicopter.
7. Backpack through a foreign country.
8. Win a race.
9. Have an easy relationship with a man, that ends up with a small beach house with dutch doors and a dog ...and bbq's every weekend with close friends. (Nauseating huh?)
10. An Alaskan Cruise.