Roseville, Rocklin, Lincoln, Loomis, Granite Bay - Placer County, California - Real Estate Blog - Souza Realty

It's A Good Time To Buy Real Estate Investments When...

...You have a high-value rental property with a low-value rental income. You can do a 1031 Exchange and buy properties that give you a higher rate of return. What's better: a $750,000 home renting for $3,000/month or 3 $250,000 homes, each renting out for $1,800/month?

...You determine that steady rental income is better than the dividends you've been getting from your 201k (formerly known as 401k). Sure, maybe there are a handful of people out there with flourishing stock portfolios, but there are many, many more who have seen their values drop significantly in the recent years.

...You have a lot more than an 8-month emergency fund sitting in your savings account earning you less than 1% interest. Everyone should have at least 8 months worth of monthly expenses, to be used in case of emergency. However, any "extra money" should be used to make the most of your financial future...which needs to earn you a lot more than 1% interest!

...You and your partner/spouse are on the same page when it comes to investing in real estate. Some couples can't seem to agree on whether or not they should invest in real estate because they may have very different risk levels. It should be something you decide on together, not a reason to place future blame on the person for either investing or not investing.

...You are familiar with the things that can go wrong with owning rental property and being a landlord. Remember that movie Pacific Heights with Michael Keaton that took place in San Francisco? Sure, it's a movie...but you get my drift. Being familiar with all of the rental laws and ordinances will help keep you out of trouble. :)

...You have a team of professionals guiding you to make the best decisions when it comes to real estate investments. This not only means having a real estate brokerage that specializes in investment property (like Souza Realty for properties in Roseville, Rocklin, Lincoln, Loomis and Granite Bay, CA - zip codes 95648 95661 95747 95677 95765 95648 95650 95746), but having a property manager, real estate attorney, CPA, insurance agent and a team of contractors and repairmen is also beneficial.

Prices Have Increased 45% Over The Last 6 Months. What Are You Waiting For?

"The home you look at today and offer on tomorrow is the same home someone else looked at yesterday and is offering on today."

-Author Unknown

One thing that Bob and I have in common is that we're not followers. What other people are doing has no bearing on the decisions we make, especially when it comes to buying real estate. It's always better to be a leader because by the time all the followers arrive, the "Supply & Demand See-Saw" will tip in the other direction, which drives the prices up.

(Photo courtesy Joe Shlabotnik ~ flickr)

Here's my example:

7 months ago, we bought a condo for $44,000. Last month, the same condo two doors down from that one sold for $64,000.

• The condo we bought had been sitting on the market for a little while. It fell out of escrow twice before we made an offer. Since the condo is located in an area we're familiar with, it didn't matter to us why this property seemed to have a tough time selling or why no one else was interested. The numbers worked, so we bought it.
   
• Although I can't explain why, the condos in this complex have been selling like hotcakes since then...and of course, prices have shot up significantly due to supply and demand. Appraisals aren't an issue, as all buyers have been cash. Even at $64,000 it's still a good investment property...but it was just much better at $44,000.

Should I Invest In Real Estate In A Declining Market?

At first glance, I think that most people would answer this question with a big fat NO! The words "invest" and "declining" just don't look all that attractive when paired together in the same sentence. However, as a real estate investment specialist, here are my thoughts when it comes to investing in a declining real estate market:

• Choose the best option available to you on what to do with your money. Everyone's situation is different, but most people would like to see the highest rate of return with the least amount of risk. Here are a few common options:

1. Savings Accounts - Most are currently offering less than a 1% interest rate. Some people think this is the safest place to keep money, but it seems risky to me...earning 1% interest on your money doesn't even keep up with inflation!
    
2. Stock Market - There is always a risk that stocks you invest in could one day crash, and financial gurus like Suze Orman says she thinks the market will continue to decline further in 2012.
    
3. Rental Property - Even if the property value declines, you will still continue to have cash flow. The rental market is stronger than ever, with the amount of short sales & foreclosures taking people out of homeownership.

But I'm An ALL CASH Buyer...Doesn't That Make Me King?

Cash is king...isn't it? Yes, it is...generally speaking. However, it doesn't necessarily apply to all real estate transactions and it is a common misconception among some all cash buyers who may be thinking of entering the real estate market. Investors who are actively buying real estate in Roseville, Rocklin, Lincoln, Loomis and Roseville, CA already know that simply being an all cash buyer doesn't necessarily mean you'll have access to securing any investment property you want at a bargain price. The truth is, there are many cash buyers out there and there is a lot of competition for properties that provide a good rate of return on your investment.

(Photo courtesy fiveinchpixie ~ flickr)

CASH IS KING IF...

...You want to buy property at trustee's sales. In California, you need to have cash in order to bid on properties being sold at the trustee sale auctions (unless prior arrangements are made).

...You are buying a condo in a complex that doesn't qualify for financing, but only if you're the only buyer making an offer. Remember, any other competing buyer will most likely have cash, as well.

...You are a buyer in a multiple offer situation and are offering the same price/terms as other buyers who are not all cash. When dealing with bank owned properties however, the outcome can sometimes be unpredictable.

Real Estate Recovery in Loomis, CA - New Construction At Sierra de Montserrat and Terracina Estates

It's been a while since we've seen new construction in the quaint Town of Loomis, but there are currently two luxury homes that are now under construction at Sierra de Montserrat and Terracina Estates. Here is a beautiful custom home being built at Sierra de Montserrat (located in a cul-de-sac with vineyard views):

Here is the Terracina Estates custom home that is currently under construction:

Lots and land sales have been quite steady in Loomis, CA as well as the neighboring community of Granite Bay, CA. Some lots have been purchased to hold for investment and some were bought with the intention of being the future site of the purchaser's dream home. Most land sales have been all cash, as lot loans are not only difficult to find, but they are even tougher to qualify for...just like construction loans. Do these two new construction starts signify builder confidence as well as a real estate recovery for Loomis luxury homes? What do you think?

Real Estate Recovery in Roseville, CA - 28 Days From Listing To Closing...On A Short Sale!

What are the two words in real estate that are most likely to generate a negative reaction from most people? If you guessed SHORT SALE - you're right! Those two words would get at least an eye roll, a disgusted groan or a long, drawn out "Eeeeeewwwww" from the majority of those who have experienced a short sale, no matter which side of the table they were on. The long periods of time waiting for the bank's response and the unsettled feeling everyone has while holding their breath to see what happens is not the way to get the warm-and-fuzzies from a real estate transaction. But I digress...

The Roseville short sale I recently closed (as the selling agent) was definitely NOT the type that gave those two words such a bad reputation. It was, in fact, a very SHORT short sale...28 days from the listing date to the closing date, to be exact. Wow! That's even somewhat amazing for an REO or a traditional sale. To me, this vast improvement in the world of short sales signifies a real estate recovery. It means that at least one bank has finally gotten their act together...and in this case, so has all other parties involved in the transaction (the cooperative seller, listing agent, cash buyer and selling agent).

Real Estate Recovery in Lincoln, CA - Lot Sales Are Up At Catta Verdera Country Club

Lot sales at Catta Verdera Country Club in Lincoln, CA have officially hit bottom this year, with lots selling at $50,000 (March 2011), $49,000 (April 2011) and $60,000 (May and June 2011). Since then, sales prices of vacant lots at Catta Verdera have doubled, with the last three sales closing at $130,000 (June 2011), $100,000 (June 2011) and $130,000 (July 2011). There is one pending sale of a Catta Verdera lot at $150,000.

With all of this recent sales activity for vacant lots at Catta Verdera, I'm wondering when we'll start seeing another construction project breaking ground, since there hasn't been any new construction in Catta Verdera for a few years now. My guess is that the next home will be designed, built and lived in by the owner. With the high cost of building permits in Lincoln, combined with holding costs that include monthly HOA dues and high property taxes with extra assessments, a builder can't compete with existing home sales by trying to make a profit by building a spec home.

Real Estate Recovery in Roseville, CA - Condo Prices Have Already Hit Bottom At Roseville Greens

Roseville Greens Condominiums have been selling like hotcakes lately! Does that signify a real estate recovery for Roseville, CA? Sure it does...at least for the Roseville Greens condo community, where prices have hit bottom ($44,000) in March 2011 and have been increasing since then. The last two Roseville Greens condos that sold both closed at $60,000. Also, there are no available condos at Roseville Greens, all units are either contingent, pending or sold. 

Roseville Greens is a condominium community conveniently located near Interstate 80 on Harding between Douglas and Lead Hill. It is across the street from Antique Trove and Claim Jumper and not far from Trader Joe's, Denio's Market, Downtown Roseville, Galleria Mall, UA Movie Theaters and the Roseville Auto Mall.

The Atlantic Street Veterinary Hospital is just around the corner from Roseville Greens, which has a Pet Emergency Centeropen 24/7. Nearby restaurants include: Macaroni Grill, McCormick & Schmick's, Ruth's Chris Steak House, BJ's Restaurant & Brewery,Mimi's Cafe, Olive Garden, Outback Steakhouse, California Pizza Kitchen, On The Border and many more.

The Roseville Greens condominiums were built in 1970 and there are a total of 232 units in 58 structures. The condos resemble a fourplex with all 2 bedrooms/1 bath units, plus 2 parking spaces (1 covered, 1 uncovered) for each unit and a shared coin-operated laundry facility. The Roseville Greens HOA is $145 per month and includes common area maintenance, insurance on the structure, grounds maintenance and management fees.

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Real Estate Recovery - Placer County, CA - Q2 2011 Foreclosure Activity Declines

The number of properties foreclosed in Placer County, CA has been on a steady decline for the past 3 months. From May 2011 to June 2011, the amount of Placer County foreclosures decreased by 17.6% and in July 2011, foreclosures went down another 14.5%.

Here are the exact numbers for the 2nd Quarter of 2011:

• May 2011 - 250 foreclosures
• 173 bank owned/REO
• 77 sold to 3rd parties
   
• June 2011 - 206 foreclosures
• 158 bank owned/REO
• 48 sold to 3rd parties
   
• July 2011 - 176 foreclosures
• 132 bank owned/REO
• 44 sold to 3rd parties

WHAT DOES THIS MEAN FOR CONSUMERS AND INVESTORS?

For consumers, a decline in the amount of bank owned/REO's mean that there are less homes being added to the existing shadow inventory (properties that are foreclosed, but not yet listed for sale). This means that as foreclosures continue to decline, a real estate recovery will begin to take place. Financial experts like Suze Orman predict that the real estate market may come back as early as 2015. We'll see about that, but remember that real estate is LOCAL...so just because a real estate recovery taking place in one part of the country, it doesn't necessarily mean that a national recovery is happening. :)

For investors, a decline in foreclosures that are sold to 3rd means that there is likely to be an increase in the competition...which could equate to higher prices paid by bidders at trustee's sales...which means reduced profit margins for the investors who flip properties. Institutional investors have more overhead expenses than private investors, but their ability to buy in volume will allow them to tighten their margin on one property "just to get the deal" whereas a private investor needs to be more cautious on each and every transaction.

INVESTORS AT A TRUSTEE'S SALE IN ROSEVILLE, CALIFORNIA (JULY 2011)

Why I Chose Real Estate! El Maktoob

El Maktoob means "destiny" or "fate" in the Arabic language and I believe that everything in our lives is predetermined. A poet has described El Maktoob as: "On the palm of fate we walk and do not know what is written." Since I believe in El Maktoob, I also believe that I became a REALTOR because I was meant to become one...and even though I worked in other industries (food & beverage, tourism, hospitality, retail, automotive and technology) from the time I was 16, I finally realized my destiny and became a REALTOR at the ripe old age of 28! :)

My very first aspiration in life was to become a hula dancer...then later, I wanted to be a ballerina. When I was old enough to seriously think about what I wanted to be when I grew up, I never had an answer that stuck until I was 24 years old and applied with United Airlines to become a flight attendant. However, after flying to Chicago for a final interview and receiving an offer of employment from United, my new boyfriend Bob decided the time to propose was now or never. So you can guess what happened next, right? I married Bob...and ditched United Airlines.

My very first real estate transaction was buying a waterfront lot when I was 26 years old. Bob and I were looking to buy a house the following year (to live in while we built a home on the lot) and I got so involved obsessed during the entire homebuying process, that I decided I really wanted to pursue a career as a real estate agent! Once I made this decision, it took me less than 3.5 months to get my real estate license and I started out doing real estate part-time on weekends. After my first 2 real estate transactions, I decided to quit my full-time job and dedicate my days, nights and weekends being a full-time REALTOR!

I've been a REALTOR for 12 years now and I'm still happy doing what I do...it was my destiny, remember? El Maktoob! Even though the real estate market has changed drastically since 1999, we have also evolved in the way we do business. Once upon a time, I was helping everyone buy and sell their homes (usually more than one) and now, the properties we obtain for our investor clients are mostly foreclosures. Although we sometimes have to deal with theft, vandalism, squatters and evictions, I wouldn't trade what I do for anything and it's rewarding to know that what we do makes a difference in the world our community. I LOVE transforming once-abandoned houses into beautiful homes again...to be lived in and loved by their new occupants, whether they are owners or renters. Here's an example of one of our latest home transformations in Loomis, CA:

BEFORE (Kitchen & Bathroom)

DURING (Removed wall between kitchen & living room, added a second sink in bathroom)

AFTER (No more oak kitchen! Bye-bye blue bathroom!)