REO’s and Their Title/Escrow Rip offs…

This has been a pet peeve of mine for a while – it’s about time we get more righteous Consumer compaints.

Many of us in the Real Estate Business have been involved in a Bank Owned Property Sale in which the Asset Manager for the bank/investor stipulate in their “contract addendums” the requirement that a “preferred” Settlement/Escrow Company is to be used.

Most of these companies are in Southern California, have business practices foreign to Northern California and they have been known to “pad their fees” to the detremint of many our buyers.

Here’s a link to a Trulia Q & A that I answered from a concerned Buyer going through this process now.  You’ll see the responses from other Real Estate Professionals as well.   We hope that this will help you or a friend if you going through this experience. 

We’d like to know about other instances so if you or someone you know is getting burned… please let us know.

Click Here for the Link

I hope this helps.

Make it a Great Day.

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

Also check out this article

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New FHA Rules – Read em and weep…!

It seems they just don’t want to let the market recover…  That’s my opinion.

Click Here for the Update

One of the big changes that will come into effect soon will be the limit on the amount of Closing Costs  you can ask the Seller to pay.   That means if you are a low cash down buyer it will be harder for you to get in.

What they are worried about is the potential for the Seller to “inflate the price” to pick up those costs.

I don’t know how that can happen since the appraisal rules also require an appraiser to stipulate that even though the Seller is paying the closing costs, it has no effect on the value being paid.

Make it a great day.

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

A Great Idea – Why Don’t More First Time Home Buyers Purchase a Duplex Instead of a Single Family Home…?

 

Why don’t more young buyers look at buying a “duplex” as their first home…? 

Heck I don’t know why either, but I’ve got the “pro’s & con’s” here.

But first,  go to  6819-6821 Trovita Way, Citrus Heights, Ca to get the “investor” flyer. 

As you can see from the numbers it’s got a decent return if this was going to be just another “cash flow” investment.

Some Pro’s here:

  • Lower down payments for an “Owner Occupied” Duplex are the same as a Single Family Dwelling.  They even qualify for FHA Loans…
  • Your out of pocket expenses for the example above would be approximately $1,000 for a 3 Bedroom, 2 Bath unit that has New Paint, New Carpet, Doors and Appliances…!
  • Equity built up – The other tenant is paying you each month.  Even though you’d have $1,000 out of pocket, you’d still have $300 going towards “principle” reducing the amount of debt you owe.
  • You can later rent the unit you live in, go buy another home keeping this Duplex as a part of your long term financial plan.

Ok… Ok… Here are the Con’s:

  • Most Duplexes are clustered in the same neighborhood with other duplexes and don’t have that “Single Family Home” feel
  • You may not like living so close to a neighbor.  

But My Opinion..?   is… “hey, you don’t have to live there forever” – you’ll be glad you did in the “long run”.

So… An ideal Duplex then would be one that is in the midst of primarily Single Family Homes – By the way, there is one like that on my website at www.theduplexguy.net/ed_hot_picks – It’s the one in Carmichael on California Avenue

  • Yards are not as large as a Single Family Home. 

But My Opinion..? is… “hey, you’d be surprised at how neat a Duplex would look with some great landscaping”.  

You could include adding patios or how about a French Door overlooking the back yard from the Master Bedroom?   Now Yea…, that would cost some $$$, but since you are going to live there, why not “doll it up”…?  

Besides when you do move…? trust me, you’ll get top dollar rent with a qualified tenant fast.   So please, don’t be afraid to fix up a Duplex “in and out”  like you would a Single Family Home. 

Curb Appeal would be the one big thing you can do to really enhance this type of invesment, so keep that in mind.

BOTTOM LINE…?

Buying a Duplex to “live in one side and rent the other” really is a great way to start out if you are young.   I haven’t even gone on here about the additional tax breaks that may also be available to you.

It just boils down to whether or not you want to live in a Duplex or prefer a single family home.

Just another idea here.  Give it a thought….

Drop me a note at favinger@rwnetwork if you’ve got some questions… I’d be happy to help.

MAKE IT A GREAT DAY…!