January 2010 Duplex/Four-Plex – Closed Sales Report..!

 Cash May Be King – But You Might Be Paying More

I’ve put together the latest Closed Sales Report for the month of January 2010.  As usual you’ll see there is a lot of cash floating around in the Sacramento County Duplex/Four-Plex Market.    But… if you look at the statistics below the average List Price/Sales Price Ratio shows that on Average, Cash Buyers have been paying more.

That’s kind of amazing…   isn’t it…?

Check it out.

I’ll have the entire closed sales list posted later today hopefully.

Make it a great day..

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

What… Another Renter’s Market Story…? Old News…

Sacramento Bee’s Recent Update Here

If you own a rental or are in the Property Management business, this is really old news.   Take a look, they aren’t long reads.  I’ll have more comment later.

Home Front: Asking rents in Sacramento region retreat to 2004 levels – Sacramento Business, Housing Market News | Sacramento Bee

Home Front: California unemployment ticks up

Make it a Great Day…!

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

Technology and Today’s Property Manager

 It’s Amazing How Much We’ve Evolved isn’t it…?

Because every day it seems I’m checking out the Fry’s and Best Buy ads in the paper.   I’m amazed at the prices for digital cameras and video “camcorders”.   I can’t believe how little they cost anymore.

video camera

 

 

I purchased my first Sony Digital Camera back in 2000 for almost $500 that used floppy discs to store the images.   I could only get about 15 or so high quality pictures on a disc and sometimes the disc would be defective.   Which meant that I’d have to go back out to the site and get new pictures.

Now…?   I’m almost afraid to purchase anything because if I wait a couple of weeks I can get it much cheaper because the next “big thing” was just put on the market.

Video – What We Do With It.

  • Advertising – We’ve been using video in our Real Estate Sales business for about a year now and Digital stills in our rental ads.   That changed about a month ago and we are now using Digital Video in our Rental Ads
  • At Move in & Move Out  –   In addition to the “move in-move out” sheet that the new tenant would ordinarily fill out, we now do a video and “hi-lite” the areas that have “dings” or “stains”.   We then keep this in the tenants file and send them a copy too. 
  • Annual inspection – If you are an out of town owner, wouldn’t it be nice for your property manager to do an annual inspection so you the owner can see how your investment has been maintained ?    I did one just a few days ago over in Granite Bay.  And…as a side note,  when I’m in the area of a rental we manage I’ll drive by and just take a still with my Palm Pilot.
  • Emergencies & Repairs that come up  – Recently we made some repairs to a roof and gutter system in an apartment complex so I got a video of the work for an out of town owner.    We’ve also used videos of fallen trees and sent them over the Internet to out of town owners to keep them up to speed.

Bottom LIne…?

Keep in mind that you don’t have to have commercial radio quality “Voice Over Tonality” to do these videos.   It’s the pictures that do most of the talking.   So just narrate enough to describe what you are shooting and remember that “Youtube” is your friend.

 

I hope this helps…

Make it a Great Day…!

 

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

Long Term Tenant Can’t Pay the Rent – Tales From The Front.

So you’ve got a Long Term Tenant that wants to “work a deal” with you… ?

Should you be flexible in these “hard times”… the recesssion

I know times are difficult now, but you as the landlord are not part of the Welfare System, so please don’t feel guilty that you are owed the rent.    

If you find yourself in this situation, let me give you some advice before it’s too late.

In California as you may know the rental contracts specify rent is due on the 1st and late on the 2nd. However you can’t not charge a “late fee” until after the 5th of the month.

Here’s the correct way to handle this situation.

Let’s say a tenant comes to you with a situation that they are unable to pay the rent and I mean they can’t pay any rent. If they have been decent tenants and have not been consistently late and have maintained the property, here’s what you should do so you don’t get burned and left without rent for a long period of time.

Your first step is to give the tenant a “3 day notice to pay or quit”.   If at the end of that time you don’t have a response your next step is to turn this over to an “Eviction Attorney” and let them handle it from that point.

However, let’s say you have given the 3 day notice to pay or quit and the tenant comes to you with a “partial” payment.  It’s ok to take that in, but then, you turn right around and issue another 3 day notice to pay or quit for the remainder until it’s paid.   The reason I recommend this strategy is that you must keep up the pressure on the tenant to get their rent in and continually issuing 3 day notices after a partial payment does that.

Why You Should Not Be Too Flexible.image2021

Let’s say the 1st of the month comes around and a tenant tells you he can’t afford this month’s rent for what ever reason.  You’ve had a decent relationship with this person so you decide to give them the benefit of the doubt, take their word and do not issue a 3 day notice.

Two or three weeks later they still haven’t paid the rent,  they tell you they are “working on it”  but,  still haven’t given you any money towards the rent.

All of a sudden you realize it’s in the 3rd week of the month and the next month’s rent is due within a week or so.  Keep in mind you haven’t  started the “eviction” process.

In Sacramento County you have to figure it will be about a 9 to maybe 10 week  process from the day you give the 3 day notice to the tenant  to the day you get into court.  When a judge finally orders the tenant out of the property and the Sheriff does the “lock out” a lot of time has passed with no rent.

Failure to act quickly and timely because you are “working” with a tenant that is in arrears will,  “in most cases”,  cost you time and therefore income if you had a “paying tenant”.

So… in the case above you’ve waited 3 weeks or so.. then you finally give them a 3 day notice to pay or quit.  Another month will pass before you finally get them into court and regain possession if they don’t answer the complaint.   If the tenant does answer the complaint, it will take longer.

And since they are so far behind, the chances of them catching  up are very slim. 

Bottom Line is you should run your property by the book.   You can be compassionate, but don’t let someone else’s problem become yours.   I’ve had experience trusting tenants in arrears only to be burned later when they decide it’s cheaper for them to move out than to pay the back rent and the current rent in a “deal”.

I hope this helps…

 

Make it a Great Day..!

Ed Favinger, Broker CRS, GRI         916.203.1260 Mobile          favinger@rwnetwork.com

The Reaction of a Cynical Homeowner in need of a Modification

short sale - small house

Participate in a Short Sale and We’ll give you some $$$ back was the message to a Home Owner…

So What Happened…?

I approached this particular Owner in my capacity as a “Home Retention Consultant” under a contract with Titanium Solutions Inc. Titanium Solutions, if you didn’t know,  has been retained by several Lenders to help keep people in their homes if possible and to assist the Banks and Home Owners in keeping the lines of communications open.

If a Modification can’t be worked out, we as Agents and Brokers are encouraged to get the Home Owner to participate in a Short Sale because the banks know it costs them more to go all the way to foreclosure.  We pay a referral to Titanium if we successfully close a Short Sale lead provided by them.

They will also pay us a small fee just to help the Lender and Home Owner keep the lines of communication open.

I can not tell you who the Lender was but they were ready to offer this particular owner  $2,500 if he’d participate in a Short Sale.

He just turned it down flat.!!   Not interested.. Not motivated at all.   Why…?   Because, in his opinion,  he had put so much money into the house that if he took the $2,500 from Wachovia he’d “lose money”.   His rational was that he knows what the homes in his neighborhood are selling for and he wants a decent loan modification that lowers his payments and does not have negative amortization.

He also wants his loan amount lowered.   If he doesn’t get it his way he’s prepared to go all the way to foreclosure but then take everything he’s put into the house with him.  In short gutting it.   He’s installed over $13,000 just in a patio cover, new granite counters and new kitchen cabinets, new appliances and a new bbq island in the back yard.

I think this is an indication of the “cynism” that is in the minds of many people, who for whatever reason, find themselves in this situation.

In this case the young man got divorced and the only way he could stay in his home was to “refinance” into one of these loans that have been the subject of many a news article.

Just another story in a frustrating year of Short Sales and Foreclosures that are everywhere.

Make it a Great Day…!

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

Bank Owned Duplex in Rancho Poised for Mulitple Offers

On the market for just a day or so…I walked inside and saw an Agent writing up an offer.

Click here to view what I saw and let me know what you think.

 

Make it a great day

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

Have You Heard..? It’s a Renter’s Market Out There

Rental Market Update  –  Is it picking up or not ?   Phone Traffic is the Clue !

As a whole our phone traffic has been a little better this week.   Prospective tenants have been searching new places to move to and we’ve noticed they ask a lot more questions regarding amenities and rental terms such as who is responsible for water, sewer and garbage fees. 

upward graph

We’ve had calls on a condo that’s been vacant for about 45 days that was finally shown today for only the 2nd time.    We’ve had several new inquiries on a duplex in Roseville that’s also been vacant about 45 days or so and we’ll be showing this weekend to a couple of potential tenants.  We’ve had a decent amount of showings for a Town House Apartment in an 8 unit complex in Cameron Park… one gal has looked at it 3 times now.  We’ve rented up 2 of them in the last 2 weeks after we lowered the rent schedule.

We took a Holding Deposit on a Town House apartment in a small 13 unit complex in Roseville the day after the other tenant moved out.    We’re now in the process of getting it “rent ready”.    On this complex, we had to lower the rents to a new “price point” that finally worked.   Since then, we have rented up 3 units in this complex that were vacant for over 45 days.

A small amount of calls have come in on some  2 bedroom 1 bath flats in Citrus Heights that have been vacant for 2 months…but no applications to rent.    The reason for this in their case is because of a lack of “amenities”, in my opinion.   So when you couple that with a “tenants market”, you’ll find that good prospective tenants are looking for more value and utility for their money..

The only way to compete is to offer a “rent special” at move in, or perhaps lowering rents if you have an extended vacancy period.

 

Make it a great day….

Ed Favinger, Broker, CRS, GRI

favinger@rwnetwork.com    916-203-1260

I Like This Duplex – Carmichael – On a Tree Lined Country Street.

 

Listed just a day ago – I wonder how many offers it will get & how high will be the price.

I’m going to post hopefully soon the Duplex Comparable Sales data for the area from October 1st to date.  I’ve already accumulated the data, it’s just a matter of putting it into a nice format that can be read here.

The reason I bring this up is because just about every offer I’ve made on behalf of several buyers on various Duplexes in the area have been in competition with other Buyers looking for the same kind of deal.   It’s amazing that there is this much of a pent up demand with the comparable sales figures lagging a bit.  When I post those you will be amazed at how many are over list price when they closed escrow.

This one here is no exception.   It’s a short sale and the “pro-forma” cash flow information is below.   Keep in mind these are estimates only.

6001-6003 Stanley Avenue, Carmichael, Ca 95608 – 3/2/1 & 2/1/1

I’ve got a video of the exterior and surrounding area to give you an idea of what the neighborhood looks like.

Click Here for the Video of Property

This is a nice area of Duplexes that rarely come on the market.  Rates are low and that’s probably the best reason to pick something like this up.

Make it a Great Day

Ed Favinger – favinger@rwentwork.com – Mobile – 916-203-1260

 

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Plumbing Leak Follow Up – What We Did To Clean Up

 

A Follow Up to my post of December 6th …..

While I did give you a tip regarding shutting of water supply lines when you are going to be absent for a long period of time and you don’t have a “house sitter”, I didn’t tell you what we did to clean up the mess.

The Problem…?

Was that a water supply line to the upstairs Master Bathroom Toilet broke and the resident there said she estimated it leaked out for at least 20 minutes before she noticed water dripping down stairs through an “air vent”. 

She immediately turned off the water supply line located just below the toilet and then got out her trusty old  “shop j0349397vac” to get the water up.

 

While she did what she could, we had to call out a professional carpet cleaning company to extract the water that had filled up a large master bathroom that was carpeted and then traveled further to about 2 or 3 feet into the bedroom itself.

The Solution…..

Our experience tells us just extracting as much water as you can, you never get it all.  The carpet and pad will be wet and will cause a mold and mildew problem if not properly treated and dried quickly.

Advanced Carpet, our “preferred vendor”  extracted all the water that they could, then set up huge fans to speed up the evaporation process to get the area dry.   The next day they came out and cleaned the carpet of any residue or coloring.

While she was inconvienced by it all, the resident thought they had done a great job in restoring the area back to it’s previous condition.  

We’ve been using this company for about a year now.  You can find them on the web here at  Advanced Carpet & Upholstery Cleaning and their local phone number is 916-989-2146.   They’ve got a “helpful hints page” that you might want to also check out. 

If you call them for service and mention our property management company’s name, Haven Properties, they will offer you further discounts beyond their posted coupon prices. 

Finally, let me tell you that we think Advanced Carpet’s pricing is just about the best in the area so check them out for your “Christmas Party” carpet cleaning or call them in an emergency for water extraction if this problem ever happens to you.

Make it a Great Day

favinger@rwnetwork.com – Mobile 916-203-1260

 

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Plumbing Leaks Can Ruin A Vacation – Here’s a Tip to Avoid a Mess

What Happens When A Water Supply Line Leaks & You’re Not Home…?

Before I answer that question, let me implore you to obtain and maintain a Hazard Insurance policy for your rental properties that does cover water leaks.

So now let me answer the question…    The Answer is..?   There’s gonna be a whole lot of water spilling into the room and spreading throuthumbnailCA5LCWSF - aghout the house until it’s turned off.

If this is a leak for example,  from a Toilet Water Supply line in an upstairs bathroom,  which recently occured in a rental home here in Folsom that we manage, the water will find a way downstairs…  In this case, it came through a vent and dripped in an area right below.

We were lucky because the tenant was home and was able to turn off the water supply valve.   This lady estimated that the water had to have been leaking for about 20 minutes.

An emergency call went out to one of our vendors to extract all the water we could and place fans to dry up the carpet to prevent mold and mildew from forming.

We were lucky because this lady just happened  to be home.

So here’s the tip… If you are going to be gone for several days and do not have a house sitter, you might want to consider turning off the water supply lines in the house,  or… just turning off the water supply line at the gate valve.

I can’t imagine the damage that would have occured if this tenant had not been home and even if you have insurance, there is the hassle of dealing with it all.

Make it a Great Day

 

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