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Sunday, August 29, 2010
FREE Tour of Bargain Homes TODAY!
Thursday, August 26, 2010
Sunday Tour of West Seattle Bargain Homes
View up to six Alki homes on Sunday, August 29th priced under $358,000!
Our Sunday Tour of Bargain Homes is a great way to get an overview of what homes and features are available in your price range in your favorite Seattle neighborhoods. There is no pressure being a part of a group and you will enjoy the constructive comments of your fellow tour members. Each tour features a different Seattle neighborhood. Our next tour will be in Alki this Sunday, August 29th.
Here is how it works: Our tours begin on selected Sundays. Each tour runs from 2-4 pm and you may meet us at any home on the tour. Tours begin at 2pm SHARP at the first house on the schedule where you will pick up detailed maps, directions and information of the featured houses. I will post the schedule of houses on the tour 3 days in advance on my Seattle Real Estate Investor blog at www.wendywonder.blogspot.com.
Meet at 2139 Bonair St SW at 2 pm to pick up maps, directions, and listings for each house on the tour. Feel free to drive by the homes before the scheduled tour times, but once the tour starts, don’t be late for the one(s) you want to preview. There will be lots of other buyers on the tour, and show times are exact. If you are interested in one of the homes on the tour, we can arrange a private showing at another time.
Tentative Schedule:
2pm: 2139 Bonair St SW $295,000
2:20pm: 2306 Halleck Ave SW $$299,000
2:40pm: 2432 Wickstrom Pl SW $269,950
3:05pm: 5617 Fauntleroy Wy SW $358,000
3:30pm: 5648 Fauntleroy Wy SW $249,950
The Sunday Tours of Bargain Homes are led by Wendy Ceccherelli, Designated Broker for Home Land Investment Properties, Inc. She is an experienced real estate investor, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.
Alki is Seattle’s version of Venice Beach with miles of scenic beachfront, amazing sound and mountain views and fresh ocean air. This spectacular strip of beachfront has long been considered one of Seattle’s favorite playgrounds.
To be notified of upcoming Sunday Tours of Bargain Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.
Wednesday, August 25, 2010
Negotiating Purchase Terms
So, you are preparing your first offer to a seller. What contract terms are negotiable?
For some reason, most buyers only think about purchase price when negotiating with a seller. But virtually all other terms are negotiable, and can make a BIG difference in profitability for an investor. Here are some common terms that might be negotiated:
--Interest rate on seller financing
You did ask about seller financing when you made your offer, right? If your seller has equity in the property, you might discuss the benefits of seller financing. The interest rate that you agree upon is totally up to you and the seller.
--Adjustable rate on seller financing
The seller insists on a higher interest rate, but you want to keep your payments low in the beginning. Or perhaps the seller wants to tie interest rate to an index, such as current FNMA mortgage rate. So adjust the interest rate on your note with the seller to go up or down, depending on your agreement.
--Interest only payments
Payments to the seller may be amortized or not, include principal pay off or not. If the buyer wants to keep payments low, just make interest only payments. By the way, agree that anything you the buyer pays over and above the interest only payment goes towards principal.
--No interest and principal payments only
If the seller insists on a purchase price that the buyer feels is very high, perhaps he would agree to spread those payments over time as installments on the principal.
--Quarterly or yearly payments, rather than monthly
The buyer might prefer this if he is doing a quick flip, paying for improvements, or doing demolition prior to generating a sale or rental income.
--No payments until call period
Same situations as above; might be dependent on an action, such as locating lease-option buyers for the property.
--Amortize over a long period (e.g. 50 years)
This is one way to keep payments low, while making payments toward principal.
--Return down payment for improvements
This makes sense if the buyer is going to have to make some large/major capital improvements. A seller might be motivated to consider this if the property cannot be financed conventionally in its present state.
--Prepayment penalty?
If you are the seller and want to receive a guaranteed income over time, build in a pre-payment penalty to discourage the buyer from paying off the note. As the buyer, you may want to insure that there is NO pre-payment penalty for paying all or part of the note early.
--Release “Due on Sale” clause
Release of this clause allows the maker of the note to secure it with a different piece of collateral upon sale, rather than cashing out the beneficiary (seller).
--Allow loan to be assumed by a qualified person
VA loans often allow this.
--Allow loan to be assumed without qualifying
A seller may be willing to keep the loan in their name, and allow the buyer to take over payments. This is a “subject to” agreement.
--Allow assumption for higher points or rate
Most commercial loans allow for this.
--Split and assume loan (for condos, or multiple units)
--Allow subordination for someone else to be first lien
A buyer may request this when they will need bank financing for capital improvements or development.
--Extend the closing date
This may be useful for a buyer that is trying to raise funds for closing.
--Allow improvements prior to closing
The seller has some liability here; but a buyer may be willing to take the risk that a property may not close, in exchange for making improvements prior to a quick flip or assignment.
--Small or no down payment
The seller may have tax reasons to avoid receiving principal, and may prefer interest only. Benefits to buyer are obvious.
--Pay for some of improvement costs
Ask the seller to pay for some of the improvements.
--Pay for closing costs
Bottom line: It never hurts to ask! So get ready to make your first offer!
For some reason, most buyers only think about purchase price when negotiating with a seller. But virtually all other terms are negotiable, and can make a BIG difference in profitability for an investor. Here are some common terms that might be negotiated:
--Interest rate on seller financing
You did ask about seller financing when you made your offer, right? If your seller has equity in the property, you might discuss the benefits of seller financing. The interest rate that you agree upon is totally up to you and the seller.
--Adjustable rate on seller financing
The seller insists on a higher interest rate, but you want to keep your payments low in the beginning. Or perhaps the seller wants to tie interest rate to an index, such as current FNMA mortgage rate. So adjust the interest rate on your note with the seller to go up or down, depending on your agreement.
--Interest only payments
Payments to the seller may be amortized or not, include principal pay off or not. If the buyer wants to keep payments low, just make interest only payments. By the way, agree that anything you the buyer pays over and above the interest only payment goes towards principal.
--No interest and principal payments only
If the seller insists on a purchase price that the buyer feels is very high, perhaps he would agree to spread those payments over time as installments on the principal.
--Quarterly or yearly payments, rather than monthly
The buyer might prefer this if he is doing a quick flip, paying for improvements, or doing demolition prior to generating a sale or rental income.
--No payments until call period
Same situations as above; might be dependent on an action, such as locating lease-option buyers for the property.
--Amortize over a long period (e.g. 50 years)
This is one way to keep payments low, while making payments toward principal.
--Return down payment for improvements
This makes sense if the buyer is going to have to make some large/major capital improvements. A seller might be motivated to consider this if the property cannot be financed conventionally in its present state.
--Prepayment penalty?
If you are the seller and want to receive a guaranteed income over time, build in a pre-payment penalty to discourage the buyer from paying off the note. As the buyer, you may want to insure that there is NO pre-payment penalty for paying all or part of the note early.
--Release “Due on Sale” clause
Release of this clause allows the maker of the note to secure it with a different piece of collateral upon sale, rather than cashing out the beneficiary (seller).
--Allow loan to be assumed by a qualified person
VA loans often allow this.
--Allow loan to be assumed without qualifying
A seller may be willing to keep the loan in their name, and allow the buyer to take over payments. This is a “subject to” agreement.
--Allow assumption for higher points or rate
Most commercial loans allow for this.
--Split and assume loan (for condos, or multiple units)
--Allow subordination for someone else to be first lien
A buyer may request this when they will need bank financing for capital improvements or development.
--Extend the closing date
This may be useful for a buyer that is trying to raise funds for closing.
--Allow improvements prior to closing
The seller has some liability here; but a buyer may be willing to take the risk that a property may not close, in exchange for making improvements prior to a quick flip or assignment.
--Small or no down payment
The seller may have tax reasons to avoid receiving principal, and may prefer interest only. Benefits to buyer are obvious.
--Pay for some of improvement costs
Ask the seller to pay for some of the improvements.
--Pay for closing costs
Bottom line: It never hurts to ask! So get ready to make your first offer!
Sunday, August 22, 2010
Why Buy Now?
Four Reasons to Buy Now:
1. Houses are on sale! In my Seattle market, housing prices are down by over 12% from a year ago. There are plenty of deals to choose from, with a record number of listings on the NW MLS for foreclosures, pre-foreclosures, bank-owned (also known as REOs or "Real Estate Owned'), and short sale (where the lender will accept less than what is owed) properties.
2. There is a large inventory from which to choose. Given the rate at which houses are being sold, it will take at least 7-9 months in most areas of my market for the current inventory to be sold. This means buyers have the widest selection they have had in many years from which to choose housing.
3. Big builder and construction discounts! Hey, these guys have no work. Want to negotiate some deals on pricing for new construction, rehabs, repairs, remodels, appraisals, and inspections? Now is the time!
4. Mortgage rates are at their historical all-time lows! And this can't last, folks. Lock in your rates while the Feds are still buying. Money is still available to lend for the best borrowers, those with documented incomes, and good credit scores.
What are you waiting for????
Friday, August 20, 2010
Ballard/Phinney Ridge Classic for Rent in October
AVAILABLE IN OCTOBER: Awesome west-facing territorial view of the Olympic Mountains from the back deck of this great 1928 home! Lots of architectural details and OWC, including original pine flooring, refinished hardwood floors, leaded glass windows, picture molding, arched doorways, cozy wood insert fireplace, and vintage trim. Home with lots of character, but with recent upgrades to make it convenient and comfortable for today's lifestyle.
Huge kitchen with granite counter tops and new cabinetry is a cook's delight! Two bedrooms and one full bath upstairs; two bedrooms and one full bath on the main floor. Spacious living room with fireplace off the main entry. Separate formal dining room for elegant dinner parties! Large fenced yard with nice landscaping and plantings.
Great neighborhood location, on major bus line, with easy access to downtown Seattle and highways. Convenient to both Ballard and Phinney Ridge business districts, shops, restaurants, farmer's markets, and cultural amenities.
Lease Terms
House may be rented partially furnished or unfurnished. 12-month lease
$2250 unfurnished
First month rent
Refundable security deposit of $1500
NO LAST MONTH RENT REQUIRED
$20 pp application fee
No smoking, no drugs
Wednesday, August 18, 2010
Mortgage rates at all-time low!
Average mortgage rates are now at 4.56%!
Think that will stimulate new buyers in today's market?
Think that will stimulate new buyers in today's market?
Thursday, August 12, 2010
Hottest Housing Market in the United States
>> THESE PROPERTIES MUST SELL! << For a FREE list with pictures TODAY of properties with acreage, shops, garages or buildable land in your desired location, visit: www.HomeLandBuyers.com
The Bremerton-Silverdale area, on Puget Sound's Kitsap Peninsula, has the highest growth forecast of all MSAs in the country, with prices expected to jump 44.7 percent by 2014, according to Fiserv. This waterfront community has benefited from government employment, which has helped sustain the job market, and attracted buyers looking to live close to Seattle at a lower cost. Washington's second-strongest market is Tacoma, with a growth rate expected to be 33.1 percent. Prices in the Seattle area are expected to grow 25.5 percent by 2014. For the full story, go to http://realestate.yahoo.com/promo/housing-markets-that-will-be-strongest-by-2014
Build your dream home on this beautiful, private, wooded lot with west-facing views to Rocky Point waterfront. Includes a 754 sf three-car garage with a two-car door, and one-car door both with shop space; and an additional 225 sf tall carport with concrete pad for RV parking. Mostly level site, has sloping meadow that contains neighbor's drainfield. Deep water moorage at Bremerton Yacht Club is 1/2 mile away. Zoned UL ("Urban Low Density"), which allows for 5-9 units per acre; Indigo Septic Design says parcel will support a standard 3-bedroom septic system. OWNER FINANCING AVAILABLE.
Feel free to drive by, get out and walk the property!
For more details, contact HomeLandInvestment@gmail.com
Wednesday, August 11, 2010
Update on Tax Credit Impact on Seattle Housing Market
Sales statistics from the NWMLS show our housing market peaking in terms of numbers of transactions during the month of May, and declining thereafter. This may be due to the impact of the expiration of the HomeBuyer Tax Credit program, which required a signed contract by the end of April and closing by June. More sales took place in May than in any other month here in King County, but dropped off after that.
Last year the peak month for housing transactions was in July. Inventory at this same time last year was around 1100 listings, but this year is around 1700 listings. So inventory has grown, while the number of transactions continue to decline.
Median prices of sold single family homes have declined about 10% since last year, and now hover around $375,000. These market conditions favor cash buyers, pre-approved buyers, and first-time homebuyers who will see a wide selection of inventory, affordable purchase prices, and record low mortgage interest rates.
Last year the peak month for housing transactions was in July. Inventory at this same time last year was around 1100 listings, but this year is around 1700 listings. So inventory has grown, while the number of transactions continue to decline.
Median prices of sold single family homes have declined about 10% since last year, and now hover around $375,000. These market conditions favor cash buyers, pre-approved buyers, and first-time homebuyers who will see a wide selection of inventory, affordable purchase prices, and record low mortgage interest rates.
Monday, August 9, 2010
House of the Rising Sun - Apartment for Rent!
Wonderfully designed one-bedroom apartment with garage and all utilities in iconic yellow, Cape Cod Colonial with views stretching from Mt. Baker all the way to Mt. Rainier. This grand home's modern elements are complemented by traditional styling. Don't be deterred by the I-90 bridge, it ensures an unobstructed view, gloomy day beauty and the high quality windows keep out the noise. Apartment has its own separate entrance, garage, and laundry room off garage.
The lower level apartment is vacant, so feel free to peak in the windows. If interested, please respond to this ad by email to schedule a showing.
For more photos and info, see:
http://www.postlets.com/rts/4245030
Friday, August 6, 2010
Furnished Temporary Stay in 2BR near Downtown Seattle
Fully furnished, with linens, towels, kitchen supplies, etc. AVAILABLE NOW! Rent this furnished 2BR apartment in elegantly restored house-share with old world charm and details -- walking distance to Lake Washington, stores and restaurants in a quiet residential neighborhood just 2.5 miles from downtown Seattle.
Dramatic lighting and divided living spaces, funky but nice! This unit has good light, its own separate entrance from the house, a small kitchen, lots of storage, washer and dryer (shared with upper floor), with wall-to-wall carpeting in a large living area and the larger of two separate bedroom spaces.
The smaller room has hardwood flooring. Cozy, functional kitchen with refrigerator, electric stove/oven, exhaust fan and microwave.
Semi-private partially-fenced backyard with deck and awesome view of Mt Rainier, Cascades, Lake Washington and Bellevue skyline. Not a noisy apartment complex--this space also comes with one off-street parking space in a shared driveway. Free utilities include wireless internet, electric, garbage, sewer, and lawn maintenance. (Also includes cable TV through Sept. 12). Easy access to I-90, highways, and bus lines.
All monthly tenants must submit an application, with screening on background, credit, income and rental history. Nightly or weekly guests must pay full amount in advance including $100 refundable security deposit. If this sounds like a good fit for you, please email to schedule a showing.
For more information and photos, see:
http://www.postlets.com/rts/3158553
Thursday, August 5, 2010
Luxury Furnished Downtown Condo for Short-Term Rental
AVAILABLE IN OCTOBER: This fully furnished, 18 foot, art-filled loft style condominium is available for a six month or more RENTAL. Includes weekly maid service and utilities (except phone) and secured parking. Located in the historic red brick Austin A. Bell building in hip Belltown location, a few blocks from the Pike Place Market in the center of downtown Seattle. On busline in the downtown fare free zone (modest fares to all outlying areas). The location is the best. Next-door to Starbucks. Macrina Bakery, and numerous excellent eating places of every cuisine within a few blocks. For longer trips, Enterprise rentals will pick you up at the door, and a Flexcar membership can be arranged for short term needs. In a Soho type atmosphere, the unit contains a small office with DSL e-mail use, Viking stove, queen-size wallbed with NASA mattress in the loft which has additional den like area for comfortable napping, reading or LCD TV viewing. More photos on request. This historic building was completely restored a few years ago, and the rental unit remodeled this year to include a small office, additional closet and storage space. Amenities:Basic phone, internet, ceiling fan, LCD cable TV, Full Kitchen, Microwave, Dishwasher, Refrigerator, Ice Maker, Cooking utensils, dishes, and linens provided, Washer, Dryer, Rooftop patio, additional patio on condo floor. Activities (on site or nearby): Shopping, Restaurants, Cinemas, Museums, Symphony, Ballet, Swimming, Boating, Sailing,Hiking, Golf, Fishing, Downhill Skiing, as well as all other Seattle features. New sculpture park on the Puget Sound is walking distance.
For more information and photos, see:
http://www.postlets.com/rts/4227876