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FHA Limits for Los Angeles Area

Homeownership is not out of reach. FHA limits in California are one of the highest in the country.  I have great lenders that can help you reach your real estate goals! Call me to get started on your homeownership goals!!!  Laura Key 310.866.8422

Here are the current limits for Los Angeles (as of August 23, 2013) FHA allows 3.5% downpayment over a 15 to 30 year term!

Single Family             $729,750

Duplex                        $934,200

Tri-Plex                      $1,129,250

Four-Plex                   $1,403,400

Source: FHA.com

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4 Steps To Real Estate Investing Success!

Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education. One good resource is to have an Agent who is Investor friendly! Call me and let's chat! Laura Key 310.866.8422

real-estate-investing

Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education.

It's startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the "sizzle" and make profiting from real estate sound easy. The truth is that it's simple, but not easy.

Here's a quick plan that will enable anyone to begin building financial independence.

There are basically four steps to investing in single family homes:

1. Buy homes below full market value. Yes, people really do sell homes for less than the home's full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer.

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won't walk door to door for three or four hours per week. OK, there are other ways.

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they've received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.

3. After you've found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars.

4. You make your profit when you buy! Never make a purchase until you've carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.

There you have four steps that even a part-time investor can execute in three to four hours per week. What's the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.

CALL ME TODAY TO HELP BUILD YOUR PORTFOLIO! Laura Key 310.866.8422

 

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Can You Buy a Home That Isn’t for Sale?

With inventory so low in Cali you must think outside the box.  I'm willing to go there with you! Laura.A.Key@gmail.com

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It may seem like an odd question, but apparently, you can! 

The shortage of homes on the market right now is driving both real estate agents and consumers to get creative in their efforts to find their dream home. One recent survey reports a dramatic drop in the number of homes for sale in 2013 (specifically, they say that there are 14% fewer homes for sale this year than in years past). One prime example of this shortage is in Orange County, California, where there are 9000 fewer homes on the market than there were three years ago!
 
With the spring season upon us, realtors have been using their creativity to try and coax potential sellers out into the market, but even with their efforts, there is still a major lack of inventory. Although it may prove to be a challenge, it is still possible to find homes that aren’t even on the market yet. If you’re patient enough, you can be first on the list should a home go up for sale!
 
How do you do it?
 
One way is to look for homes where the current owner has defaulted on their loan. There is a period of time before the bank forecloses on the home where you can make an offer to a homeowner who may be struggling with paying their mortgage. By approaching the homeowner before the bank forecloses, you can save the homeowner from foreclosure and buy a home that hasn’t been listed yet. 
 
By doing some research, you may be able to find potential sellers that previously had their home on the market, but took it off either because of the lousy market, or for other reasons. When you find one, send a letter to the homeowner, and ask them to contact you should they decide to relist their home, or make them an offer worth consideration even if they had changed their mind about selling. 
 
(One thing to be careful of when contacting homeowners is that it is illegal to place something in another person’s mailbox. Either mail the letter through post office, or leave the letter at the front door.) 
 
You may also be surprised to discover that there are websites where people “list” their homes at their fantasy price. Although these are not official listings, you may find a home where their fantasy price isn’t that far off from your reality price! By searching for these homes, you at least can get an idea of people who could be persuaded to sell if you are willing to make their fantasy a reality. 
 
Finally, to buy a house that isn’t for sale, take a shot in the dark and contact homeowners of houses you love. Although this is a long shot, people have actually been known to sell their homes in these situations. Mail the owner a letter about why you love their home, and why you are so interested in purchasing it. Ask the homeowner to contact you and let you know if they have any intentions whatsoever, or to contact you first should they ever decide to sell. 
 
The trick to reaching out this way is to be flexible and to offer scenarios that may be mutually beneficial. For example, you may offer to rent out the home after purchase for a period of time while the homeowners search for another house. It may seem like a long shot, but it’s definitely worth a try if you really love the house!

This article is brought to you exclusively by RealtyPin.com

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Who Can Buy A HUD Home?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings!http://www.KeyCaliforniaHomes.com

HUD Home

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

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The American Dream of Homeownership!

For the vast majority of us, owning a home is part of the American Dream. According to a study conducted by the NATIONAL ASSOCIATION OF REALTORS®, 87 percent of those polled cited owning a home as the number one criterion for defining "the good life." Owners and renters alike considered homeownership desirable for the following reasons: the pride of ownership, their dislike of paying rent, and the ability to change features of their homes to match their individual tastes and needs.

In addition, owning your own home provides a sense of security and well-being that's hard to beat. Home is where we raise our families, have friends over for summer barbeques, paint the baby's room pink or blue, and find refuge from the outside world.

Owning a home offers other advantages as well. For instance, as a homeowner, you have control over your environment. Not only can you change your home to meet your needs, but you also aren't subject to the terms of a lease or a landlord. As a homeowner, you can experience the emotional and financial security that comes from knowing what your housing expenses will be from year to year. Unlike rents, which can increase annually, most mortgages have fixed or capped monthly payments. So, as a homeowner, you can have a much better idea of what proportion of your paycheck goes toward your home. Think of it as the ultimate savings plan.

Bottom-Line Benefits

And it only gets better. Homeownership is the primary component in the creation of wealth for many Americans. Data from Harvard University's Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity. As you pay down your loan amount each month, you accumulate equity, a growing ownership interest in your property. If you need funds, you can borrow against this equity in the form of a home equity loan. Further, interest on a portion of home equity is tax-deductible.

Most homes appreciate in value over time and can be a source of income for you, especially if you've lived in your house for many years. When you retire, you can sell your home if you need the funds or make use of a home equity conversion mortgage.

Finally, don't forget about the significant tax advantages of owning your home. Interest on a home mortgage and property taxes are deductible. For most of us, mortgage interest provides the largest tax deduction. Also, a home is the single most important factor that determines whether you will be able to file a return which takes advantage of the wide range of allowable itemized deductions.

Homebuying Means Getting Back To The Basics

Recently, the CALIFORNIA ASSOCIATION OF REALTORS® surveyed homebuyers to find out what they considered to be important in the purchase of their homes. The largest percentage, 27 percent, considered the mere ownership of a home as the most important reason to buy. Moving to a better neighborhood (17 percent), wanting a larger home (10 percent), and realizing the tax advantages of homeownership (8 percent) were other reasons cited for buying homes. Seven percent focused on investment value as their primary motivation for homeownership.

Over the years, your home likely will be the best investment you'll ever make. But more importantly, it will be the place that offers you and your family shelter, security and stability. That's some return on investment.

Source: CAR (California Association of Realtors)
www.KeyCaliforniaHomes.com
Laura.A.Key@gmail.com
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