Category Archives: Investor opportunities

Boomer? Retiring to rent or should you buy?

@agingbabyboomers! Yes, I resemble that remark. RENT vs. OWNING? Perhaps you want to keep your home here in Sonoma County, rent it out and go exploring other areas to live. You could pull some cash out of your home here, rent it to cover the new debt service and then go rent in the south of France for a year? Spain? Way back east in the New England states or perhaps Oregon or even Texas! (remember, Austin is WEIRD!). A $250,000 1st at 5.5% is about $1,419 per month in debt service. You own a home in Rincon Valley, 3 bed, 2 bath, 2000sqft, rents going to be $2400 at least! Throw in social security, retirement and you’re GOOD to go (obviously speak to your accountant and retirement specialist for advice).

 

 

Will MORE Real Estate Inventory equate to MORE Sales? History does not lie!

We seem to be suffering under the MORE INVENTORY WILL EQUAL MORE SALES notion. Granted, more inventory would allow more choice, lower our appreciation rate as we’d have more to choose from with fewer overbidding, but note the sales are NOT that dramatically different when there is more inventory. Looking back 10 years you can see in the light green the huge amount of inventory vs. today’s anemic numbers. However, the sales do not look all that much different.

 

Looking back 10 years inventory and sales-They don't go hand in hand!
Inventory VS Sales–More Inventory = More Sales? Note the amount of Sales do not increase dramatically with MORE inventory.

Purchasing Real Estate and other investments through your IRA or SEP IRA.

IRA Investor Specialist
IRA Investor Specialist

Entrust Investments

Special show October 23rd for all investors and IRA or SEP IRA holders. Below is our guest speaker Bill Neville. Do you know you can buy investments THROUGH your IRA? Gain is NOT taxed? But there are procedures that absolutely MUST be adhered to. We’ll discuss this great program with our IRA specialist.

Bill Neville, Business Development Manager

About Bill Neville, Business Development Manager

Bill Neville joined The Entrust Group over five years ago through his initial role as Manager of Operations for the company’s franchise program.  When the program was discontinued, Bill stepped up to the task of managing the Compliance and Internal Audit departments. With a keen eye for detail and gaining valuable insights into the IRA industry, Mr. Neville kept Entrust’s educational programs and internal processes in line with industry regulations. Bill actively takes pride in the company’s growth and success, and is currently the Business Development Manager for Entrust’s San Francisco Bay Area office.

Certified IRA Services Professional (CISP)

bneville@theentrustgroup.com

t 800.392.9653 x237  |  d 510.587.0950 x237  |  f 510.587.0960

The Entrust Group | 555 12th Street, Suite 1250 | Oakland, CA 94607

 

Median “Active” vs. Median “Sold” BIG difference!

 

You hear so much about the "Median Home Sales Price" but how about the Median Listing Price?
You hear so much about the “Median Home Sales Price” but how about the Median Listing Price?

66% of May real estate sales fell between $400,000 to $749,000 here in the “Wine Country” of Sonoma County, California. Many in the nation might think our prices outrageous but here in the super heated “Tech-centered” Bay Area we are considered the “bargain basement”. Our “Median” SOLD home price is $580,000. However, the “Active” or “Showable” listings tell a different story. Whereas a “median” home price indicates half the market above and half below when it comes to “Active” listings its another story altogether. We have 818 total “Active” or “Showable” listings now available county-wide.  If we use $580,000 as a median home price with our “Active” inventory we see 27% of the available listings are BELOW $580,000 and 73% above. The county-wide Median “Active” list price is $815,000.

If you wish to find “Active” properties below the “Median SOLD Price” only 4 areas meet that criteria: Russian River–$449,000 with 59 showable listings. The SW area of Santa Rosa comes in at $469,000 with only 27 showable listings, followed by NW Santa Rosa, $515,000 with 46 showable listings and the Cotati/Rohnert Park with $537,000 median home price of actives but only 18 showable homes.

It really takes off from there. The top two median “Active” home prices? Sonoma at $1,297,000 with 125 showable listings and Healdsburg, $1,411,500 with 76 showable listings. Overall, of the 818 total “Active” listings 308 are OVER $1,000,000.

Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

Exchange Expert Toni Esposti.
1031 Exchange Expert Toni Esposti.

Toni Espositi of Old Republic Exchange Company (OREXCO) joins us on the Real Estate Hour Sunday June 5th 9-10AM pst., 1350AM, 103.5FM, and streaming live with Podcast immediately following the show at KSRO.com.

Regional Sales Office – California ‒ Northern
& Pacific Northwest – Ms. Toni Esposti, CES®

Vice President & Regional Sales ExecutiveToll Free: 888-677-1031
E-mail: tesposti@orexco1031.com

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There’s a very informative brochure on the OREXCO website at: https://orexco1031.com/Downloads/OREXCO_brochure_English.pdf

Here are some answers to common questions from the Orexco website FAQs . For one on one, specific answers to all your 1031 questions, call in during the show 707-636-1350 or contact Toni Esposti directly: Continue reading Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

Rent Control and “Just Cause” evictions–Points to Consider–this Sunday’s Topic

For or Against Rent Control? Here are some points to consider and express to the City of Santa Rosa Council meeting May 3rd—Public Meeting at City Hall.
We are please to have Daniel Sanchez, Government Affairs Director, of the NorthBay Association of Realtors to talk about these timely issues before the City of Santa Rosa takes action on May 3rd at the Council Meeting. 
Just Cause:—What is it?  Under just cause eviction, a tenant can only be evicted if the landlord can prove that the tenant is violating the lease, breaking the law or if the landlord must move themselves or a family member into the unit.
  • Any type of rental can be eligible for just cause, including single family homes.
  • Just cause eviction ordinances would require rental owners to prove “cause” in court, or in some cases before a political body, every time they need to remove a problem resident, such as a drug dealer, or violent criminal.
  • Proving cause in court or by going before a board or commission is hard to do and unfair. The legal process is costly and time consuming. Rental property owners would have to depose and subpoena other residents to testify.
  • Because removing a problem tenant requires going to court, these ordinances tend to clog the court system.
  • Santa Rosa should focus on educating renters on their protections under state law, instructing owners on their obligations, and enforcing the laws we have.
  • Santa Rosa should provide a forum for owners and residents to resolve disputes in a neutral setting — not in a court, not in the political setting of an eviction board, and certainly not with a host of new laws and regulations.

Continue reading Rent Control and “Just Cause” evictions–Points to Consider–this Sunday’s Topic

Hard Money or Soft Money? What is it and WHY should you care!

  Todd WilsonYou may have heard the term “Hard Money” and wondered what this means? Perhaps you’ve even heard the terms, “Soft Money”? Tomorrow on the show we will have as our guest Todd Wilson of ARC Capital, a firm which specializes in just such a lending product. Different than “conforming money” or regular loans which you would get from a bank such as Wells Fargo or BofA, “Hard Money” has less in the way of stringent guidelines. The “Hard Money” lender is more concerned about an initial equity stake in the property and require MORE of a down payment to secure their loans. Todd will fill us in as to WHY this might be a good way to enter the investment or flip marketplace or just as an alternative to a tough guideline regular loan.

Todd Wilson-ARC Capital  (707) 523-2900

e-mail: todd@ARCequity.com–www.ARCequity.com

100 Stony Pont Road, Suite 260–Santa Rosa, CA 95401

CA Dept of Real Estate – Real Estate Broker License #01232889

CA Dept of Real Estate – Salesperson License #01322338

NMLS #375764 and 309743

ARC Capital Hard and Soft Money

 

1031 Exchanges making a big rebound! Debra Culbertson of First American Exchange Co. joins me this week!

We welcome this week Debra Culbertson to talk "Exchanging" of property equities--YES! We have EQUITY again!
We welcome this week Debra Culbertson to talk “Exchanging” of property equities–YES! We have EQUITY again!

Sonoma County real estate Investors are seeing a new reason to use the IRS 1031 Exchange option as equities soared during the past two years. But since many have NOT used this tax code in many a year, we are bringing to the show our local expert–Debra Culbertson.

She is the Northern California Sales Manager for First American Exchange Company and  has specialized in 1031 exchange transactions for over 15 years with First American Exchange. Debra also has experience in commercial real estate leasing, commercial title insurance and TIC (Tenants in Common) brokerage.

30 North Street
Healdsburg, CA 95448

Cell: (408) 857-8213
Toll Free: (800) 833-4343
dculbertson@firstam.com

PLUS–Our “Stager” Denise Frye of “Make Your House a Home” will drop by to give us some tips on staging a home for the Holidays! All this and YOUR questions on the longest running Real Estate Talk show in the Bay Area!! KSRO’s “Real Estate Hour”, every Sunday, 9 to 10am, PST, 1350AM or streaming LIVE at www.KSRO.com

 

Sonoma County, Ca FORECLOSURE REPORT–January 2013 Cancellations leading the pack, REO market going, going, gone?

Here in Sonoma County, California, “The Wine Country with the Coast”, the last report from Foreclosureradar.com (January ’13), shows the impact of the “Homeowner’s Bill of Rights” and the huge national settlement set by the 49 attorneys general–

 

Cancellations–where the bank stalls the foreclosure process are NOW leading the pack over the  bank “Foreclosing” on a house (down -60% over last year!) and “Sold to a 3rd Party where the bank sells at the courtsteps (down -32% over last year but PLUS 40% for the month!!). You can see in January that the “Cancellations far outnumber the “REO” and “Sold to 3rd party” by substantial amounts. The numbers for the month of January are:

Cancellations or foreclosure stalled and put off:  164

Foreclosed homes where the bank has proceeded with the foreclosure process: 46

“Sold to a 3rd party” or where the bank sold at the courtsteps: 38.

 

As you can see the REO market is on the wane with modificatioins (Cancellations) seeming to be hitting stride as predicted by the Attorneys General  historic settlement–NO MORE FORECLOSING! Short-Sales or loan modifications!