Realty World – Franklin Real Estate Group – Ed Favinger

Beating your head against the wall feels better sometimes then dealing with them

This is what my old mentor,  Mickey Holland told me when I first started in Real Estate back in 1981.   What he told me then has really held up over the years.

Let me explain.  We are now down to the final stages of a “Short Sale” involving a 1st from Well Fargo Bank and an equityline loan from E-Trade.  This scenerio alone is enough to scare a lot of people away from this deal.   But… after almost 6 months of waiting for approval we have it from both lenders.

The Problems….?

1.  The Title Company has to make sure that the Buyer gets nothing back after the close of escrow.

2.  The Short Sale Approval Letter from E-Trade is a PDF file that is not signed by anyone and is not on a “letter head”.  I wish I could put up a copy here, but it is a letter that only folks involved in the transaction can see.

Why do these two things make me crazy…?

Regarding #1 – if you have ever purchased a home before…. buyers “always” get back some money because the “escrow” people can never zero you out unless they are assured that a deal is going to close on time.  I’ve been in this business for 30 years and there is always some last minute adjustment on the papers which means a Buyer will get some money back after the close of escrow.  IT’S ALMOST ON EVERY DEAL I HAVE DONE SINCE I HAVE BEEN IN THE BUSINESS.

Now I can understand that in the Seller’s case they want to make sure there are no funds going to them because they are taking a payoff for thousands less than what is owed.   But my question would be, why do they insist the Buyer get nothing… when it’s the Buyer’s money..?

Regarding #2 – When talking with the Escrow Officer at the Title Company, she’s prepared to close the deal based upon the unsigned letter that doesn’t have any letter head.

So..?   My question to the new lender is… “Why do you insist on the letter from E-trade be signed when the Title Company is prepared to honor it, close escrow and issue an ALTA Lenders Title Insurance policy showing you, ‘the new lender’, in first position on the new Title Policy…?” The Title Company is, after all, on the hook not the new lender.

Meanwhile, all the loan and escrow papers have been signed since last Tuesday,  April 27th and we can’t seem to get anyone to either sign the letter from E-trade or at least put the letter on some “letter head”.

I bet if you speak with other professionals out there, you will find many more cases of an “over reach” by Lenders in today’s economy that just slow down the process and therefore a quicker recovery.

Make it a great day…!

Ed Favinger, Broker CRS, GRI, SFR              favinger@rwnetwork.com      916-203-1260

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The Price is Right – Just Needs New Management & Some Repairs.

I was involved in a sale of a Duplex next door to this one.   There have been 3 recent sales in the area with new investors fixing these up.   This used to be an awful street of neglect.

That’s all changed in my opinion.   Click Here for the “proforma cash flow analysis”

By the way, we know this area because we also manage the duplex on the left side of this one.

This has been on the market for a while… just waiting for someone to jump on it.

Take a drive by there yourself and see what you think.   I think properties in the City of Rancho Cordova are a great investment.

Make it a great day…!

Ed Favinger, Broker CRS, GRI, SFR  favinger at rwnetwork.com        916-203-1260

I’m not seeing it.  But there are some stats that say otherwise.

I got this blog post from Jim Wasserman,  the Real Estate Reporter for the Sacramento Bee.   If you have any questions regarding this report, you can contact him directly at:  jwasswerman@sacbee.com

I think you’ll find this interesting.   I’ve copied and pasted the article below it’s current link.   The SacBee drops the links content off after a while.

Here’s his report below…

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In Your Search for a Duplex Investment,  Not Only Should You Consider the Surrounding areas – Consider it’s current setting – I’m talking “Extended Living Areas” that Add Value.

Why do I say that…?   Well if you haven’t noticed we are in a recession with an unemployment rate in the Sacramento Region around 12-13%.   This means people are going to have less money to spend on nights out on the town, vacations and other entertainment venues that these folks might in good times frequent.

You’ve heard of “Stay-cations”… vacation at home.   And if you are going to be in the Landlord business, consider that if folks have to stay home, they’d like a nice setting to enjoy.

An advocation that gives me a lot of pleasure is “landscaping” a property.   It’s important to me and I believe this is one of the big items I think many investors choose to ignore or go on the cheap.   One comment in a basic landscaping book I got at Home Depot years and years ago spoke about the importance of landscaping.  ”Landscaping when done right acts as an extension of the living area.”

Patios outside a Dining area for example is a nice place to have your BBQ grille and Patio Furniture.   A small patio outside a bedroom slider would be a nice place on a Saturday or Sunday morning to read a paper and slurp your “cup of joe” wouldn’t it….?  Or…? What about having a glass if wine with your friends over on a nice evening with the sun just about to go down on a well appointed deck or patio.

See the two examples below and let me know if you see the “potential” that a good landscape cleanup and enhancement would do for them.    I have videos of both  along with the usual “pro-forma” cash flow analysis.

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910 Bell Street, Sacramento - This property is on the corner of Bell Street and Villanova Circle.  It’s located near a regional park, Cal Expo, Arden Fair Mall, entertainment and restaurants.  This one has some mature landscaping in place that just needs to be properly cared for and along with the usual repairs that is required on these REO/Bank owned properties, if you took my suggestions, this would be a long term keeper.

Click Here for a Pro-forma Cash Flow Analysis

Click here for a video of the Bell Street Side Click here for the Villanova Circle Side

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3622-3264 Sutterwoods Way,  Sacramento, Ca.  I used to own a property just like this one about 8 years ago so I know the street.   This one also has a unique corner lot setting with a lot of shrubs and trees.    The interior of this one is not in bad shape.  The appliances don’t appear to be too old.

Click Here for a Pro-Forma Cash Flow Analysis

I hope you see the potential in these two potential investments.   A first time home buyer I think could make a nice home out of one side and rent the other by the way.

Make it a Great Day…!!!

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