Tax Credit has been extended.

Finally its official Congress has passed the extension of the home buyers tax credit. The bill is now on President Obama’s desk for signatures. This will give us until April 30th to take advantage of the credit.

Who can get the credit?

First-time buyers who have not had interest in a principle residence for three years are still eligible. Maximum amount remains the same – $8,000 for married couples, $4,000 for those filing separately.

Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately.

I have attached a link explaining the minor changes of the tax cred it.

See attached link NAR Tax credit changes.

Another HUD Sale.

Just closed my 3rd Central Valley HUD home since June. Every transactions teaches me something new. This time we used HUDs $100 down payment and the repair escrow programs. See final numbers for details.

The lucky new homeowners are the Rubio family. They have a family of five and where looking for something in a good area with room for them to roam. They found a nice 3 bedroom 2 bathroom home in the Sylvan school district. The property needed a new central heat and air unit so they used HUDs repair escrow program which let them finance the new unit into their loan program. This along with the $100 down payment plan helped them move in to this property with a bit less than $700!!!

Congratulations!!

FINAL NUMBERS HUD HOME 3 bedroom 2 bath 1,662 . ft. home built in 1986
Purchase price $155,000 HUD Good neighbor program $100 down payment
Loan Amount $161,172 Loan term 5 .5% FHA 30 yr fixed.
Monthly principal and interest payment- $1183.44
HUD paid $5,000 in closing cost
ESCROW ACCOUNT $4500 in repairs
Buyer will be receiving $8,000 first time buyer credit.

Small investment with fantastic returns.

I just gave the Sanchez family to keys to their 2nd rental property this year. The Sanchez family's plan was to put 25% down and generate as much positive cash flow as they could on each property. Their new property is a 2 bedroom 1 bath with a ¼ acre lot. It has a shop and a 3 car carport located in a quiet and very private street. Like any other investor their main concern when purchasing was the marketability of the property as they would be renting it out. I think they got everything they wanted in this one.

Congratulations on the new rental!


FINAL NUMBERS
2 bedroom 1 bath 924 SF with ¼ acre lot and 3 car carport.
Purchase price $64,900
Down payment $ 16,225
Repairs $5,000
Total out of pocket $21,225

Amount financed at 30yr fixed 5.25% rate
Monthly payment $386.39
Rent $800/month $9,600/yr
Positive cash $413.36
ROI /YR = 23%

Bote family investment.

The Bote family was referred to me by a past client of mine in my circle of investors. They pulled some of their money from the stock market last year and where waiting for put a bit of it in Real Estate. They where looking for something in a good area with a rentable and marketable floor plan. It took only three short weeks to find what they where looking for. We went into contract on a Wachovia Short sale managed by Chris Hall Wachovia’s local asset manager and closed it 14 days later.

The numbers
Purchase price $122,500
Amount finance $0 (paid cash).
Yearly holding cost insurance and taxes. $2,136.25
Projected rents $1,200/month. $14,400/year
ROI after holding 9.9%/Yr.

Lets go to Patterson!

Last week I had the great honor of giving Earl and Myesha the keys to their new Patterson home. I met Earl and Myesha 7 months ago when they where referred to me by one of my past clients. As first time home buyers they where looking for a home that was in a good neighborhood and had plenty of room for their 2 little ones. Our search took over 5 months and we submitted countless offers before we found the place they now call home!

The property they purchased was HUD home listed with an owner occupant priority which allowed us to take first position to investors. This is a new occurrence as HUD is beginning to foreclose on FHA borrowers that purchased homes in 2007-2008. HUD will allow owner occupied buyers to submit offers before investors have a shot at purchasing the property. They also offer great incentives to first time buyers, teachers, police officer, firemen and non profit organizations. Earl and Myesha took advantage of HUD’s $100 down payment program allowing them to finance just about 100% of the purchase price allowing them to keep more money in their family checking account for repairs!


CONGRATULATION!!!



FINAL NUMBERS

HUD HOME 3 bedroom 2 bath 1,602 . ft. home built in 2007Purchase price $120,000HUD Good neighbor program $100 down payment
Loan Amount $121,998 Loan term 5 .5% FHA 30 yr fixed.
Monthly principal and interest payment- $692.69
Mortgage Insurance - $54.62
Hazard Insurance - $43.67
County Property Tax - $125
Total Payment - $915.98
Previous rent $1250
SAVINGS $4008,24/Yr $334.02/Month

HUD paid $2,000 in closing cost
Buyer will be receiving $8,000 first time buyer credit

New Modesto Home Owner!

I Just gave Oscar and Crissy the keys to their new home in North Modesto. Oscar is in his mid 40's and is excited about making his long term dream of home ownership a reality! He purchased a nice 3 bedroom 2 bath home near FWY 99 and 132. He wanted something with enough room for him, Crissy and the 3 wild puppies and that’s exactly what he found on Chalone Drive!

CONGRATULATION!!!

FINAL NUMBERS
3 bedroom 2 bath 1,552 . ft. home built in 1987
Purchase price $130,000
3.5% down pmt - $4,550
Loan term 5 .25% FHA 30 yr fixed. Monthly payment $933.00 taxes and insurance included. Seller paid $4,500 in closing cost and installed new Baileys Air Unit.

Receiving $8,000 first time buyer credit.



PREVIOUS RENT $1050/month over $100/month in savings!

Homebuyer Tax Credit (Update)

U.S. Senate leaders moved closer to an agreement on replacing an expiring $8,000 tax credit for first-time homebuyers with a smaller one that expands access to more borrowers, two people familiar with the matter said. The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.

The new agreement, which is still being negotiated and may change, would expand the credit to so-called step-up borrowers who have lived in their current home for at least five years. The income eligibility for first-time homebuyers would remain the same at $75,000 for individuals and $150,000 for couples. The income criteria for step-up buyers would be $125,000 for individuals and $250,000 for couples. The credit would be limited to homes costing $800,000 or less.

Maricala is a local school teacher and was looking in Turlock for her first home. She was referred to me by her mother Graciela. It was a 6 month journey and took countless hours of house hunting but we finally gave her the keys to the place she can now call home! Its always a pleasure to help very excited first time home buyers!!!

CONGRATULATIONS MARI!

FINAL NUMBERS

3 bedroom 2 bath 1,155. ft. home built in 2000
Purchase price $148,000
3.5% down pmt - $5,200
Loan term 5 .25% FHA 30 yr fixed.
Monthly payment $1,062 taxes and insurance included.
Seller paid $4,000 in closing cost.

(I can see it now. Buyers will need to sign a new disclosure paying all title fees in order to choose their own title compnay. Buyers will ultimately go with the sellers choice to save on additiona...l cost)

SACRAMENTO, Calif., Oct. 13 /PRNewswire/ -- The Escrow Institute of Californiaannounced today that Governor Schwarzenegger signed Assembly Bill 957 intolaw. This bill, authored by Assembly Member Cathleen Galgiani (D-Tracy),protects consumers by ensuring that they have the right to choose their ownreal estate service providers when purchasing foreclosed properties.

Read more about it on Reuters.com

Weekly numbers 10/9

Low interest rates!

As you all know interest and have read in my previous post rates have dropped to record lows. Thanks to the help of Tyler Horton at PMZ Home loans I was able to close on my refinance!!! If you have any questions or would like a recommendation to a good Loan Officer shot me an email.

My new loan $280,000 at 4.875% !! Amtrust Bank.

Mortgage rates approach all-time lows LA Times.

Mortgage rates approach all-time lows -- latimes.com


Freddie Mac's average 30-year fixed-rate loan falls below 5% for first time since May, to 4.94%. The record is 4.78%.


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9/12 - 9/18

** It looks like inventory increased this week. Notice the new listings from last week to this week we had almost 100% more homes come on the market.

Last week new homes 116 this weeks was 212 **

San Joaquin County

182 closed transactions this week

77 New Short Sale Listings
82 Short Sale Contingent (pending Short sales)

212 New Listings

272 Pending sales from 9/12 - 9/18

Totals

2,121 Pending sales

1,071 Active Properties

558 Active Short Sales
860 Active Short Sale Contingents (pending)

Stanislaus County

136 Closed transactions

135 New Listings

223 Pending sales from 9/12 - 9/18

43 New Short Sale Listings
60 Short Sales contingent (pending)

Totals

1,645 Pending transactions

811 Active Properties

422 Active Short Sales

753 Active Short Sale contingents (pending)

Ultimate 1031 Exchange!

Indalecio and Elena purchased their first home on Michigan Avenue in Alviso California back in 1987. Ten years later thanks to some tight budgeting the home was completely paid off. In 1990 as the family was growing they decided to move to Modesto. They fell in love with a new home in the Central Valley so they decided to make Modesto home. Michigan Avenue shortly after became a rental property. It had 2 properties on one lot so it gave them $2,200 in positive cash each month. Michigan Avenue as a rental has made them over $300,000 in positive rents in the last 12 years now that's a stellar return.

We sat with Elena and Indalecio in November of 2008 and developed a plan to maximize their return on the Michigan property. The goal was to help Indalecio retire 4 yrs earlier as he turned 60 in July . We came up with a plan to sell Michigan and 1031 exchange him into like properties in Modesto. For those who don’t know Alviso is in the bay area, prices there are usually higher than Modesto by 100-150%. Rents in the bay area are not that dramatic they will run about 30% more than the central valley.

The Plan: 1031 Exchange Michigan Ave to like kind properties in the Central Valley.

5/8/2009 Michigan Ave sold for $299,900 Net to seller was $279,000 (Original cost $80,000)

1031 account Bal : $274,289.91 with 90 Days to identify 180 days to close.

Purchases

Crippen Ave 3 bed 2 bath $57,791. Repairs $5,000. Rents $925
Mounth Hood Ct 3 bed 2 bath $62,219. Repairs $3,000. Rents $950
Whitethorn Dr 3bed 2 bath $90,814.48. No Repair cost. Rents $1,050
Crowslanding Rd 2 homes, studio and shop $46,537. Repair cost $15,000. Rents $2,050

Total Purchase prices $257,361.48

Repair cost $ 23,000
Total Expense $285,361.48

New rents $4,950/month. $59,400/year.

Previous $2,200/month $26,400

Increase on ROI $2,750 that’s $33,000 a year!!! I say JOB WELL DONE.


FYI Indalecio is not officially retired.

SOLD MICHIGAN AVE

Crippen

Mount Hood

Whitethorn

No Picture of Crowslanding

Weekly numbers 9/5 -9/11

9/5 - 9/11

San Joaquin County

162 closed transactions this week

46 New Short Sale Listings
55 Short Sale Contingent (pending Short sales)

116 New Listings

232 Pending sales from 9/5– 9/11

Totals

2,133 Pending sales

1,049 Active Properties

550 Active Short Sales
840 Active Short Sale Contingents (pending)

Stanislaus County

103 Closed transactions

110 New Listings

209 Pending sales from 9/5– 9/11

37 New Short Sale Listings
46 Short Sales contingent (pending)

Totals

1,675 Pending transactions

781 Active Properties

439 Active Short Sales
742 Active Short Sale contingents (pending)