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According to real estate company owner and market analysis, Dan Kirksey, the next boom has begun for Inland Empire home prices.

REAL ESTATE MARKET CYCLES ARE VERY PREDICTABLE IF YOU WATCH THE NUMBERS

My wife Carol and I have been in the Real Estate business for over 25 year. Watching people make incredibly good decisions and bad decisions has given us an almost 3D vision when it comes to real estate cycles.

In early 1990, people were lining up and camping out at new housing tracks just to get an opportunity to put a $1,000 deposit to hold a lot without knowing the final price. What we saw was that the inventory of available homes was going up steadily, and the number of days on the market were getting longer,. The fact was that “THE BUBBLE HAD ALREADY BURST” but only the number watchers could see it.

In mid 2005 the signs were there for those watching, the inventory had been increasing for 3 months, and the days on the market were getting longer, despite the ease of financing. Carol and I started being very vocal with our investors about getting out now or stay in for another cycle. Most listened, saving millions of dollars. In 2006 home equity loans were being made and consumers were using the money to buy investment properties at a feverish pace…“THE BUBBLE HAD ALREADY BURST” but only the number watchers could see it.

In mid 2009 for those watching, the market had hit bottom, Carol and I once became vocal about this new buying opportunities with our customers. We represented many purchases that have now in 2016 increased value in excess of 200%.

The second quarter of 2016 is feeling a lot like 2004 with inventory steady,  and properties listed at market value or even slightly above are selling quickly.

2017 and 2018 we should see dropping inventories and steady value increase with the bubble bursting once again in late 18 or 19.

http://www.marketwatch.com/story/fed-will-likely-hike-rates-in-june-in-wake-of-jobs-report-economists-say-2016-04-01

 

Fed will likely hike rates

 

Microsoft Zeus Virus scam 16 Apr

With the recent Windows 10 upgrades, I received an Adobe upgrade which “crashed” my internet explorer. You will be guided to a fake Microsoft site where an Indian tech support will try to convince you that your network has been infected by over 7699+ invasions of which were 2300+ viruses & other hacks. Hang up, do not engage. Look up Microsoft Tech Support on your own and call the REAL Microsoft. They will fix for free. The other fake site will charge you $199 to $599 licensing to “fix” the problem. This is also a scam. Beware.

SELLING A HOME WITH A HERO LOAN ATTACHED

Some things seem to be too good to be true are. The HERO loan program looks like a great way to do some home improvements, upgrade energy efficiency and not spend any funds out of pocket.

I’m not going to pass judgment on the whole program as I’m sure it has its good points, but from a home seller point of view there can be some issues damaging a homes value. Let me give an example.

Dan and I listed a property in The Village of Heritage in Fontana, and the homeowner had just recently obtained a hero loan for a new a/c system and all new windows six months prior to listing. The cost was $22,000, with a 10 year repayment at 8.5%. The amortized amount of $260.37 per month was added to their property tax bill for a total of $3124 annually. The property was valued at $400,000 (after the improvements), but unless the hero loan (which was still over $21,000) was paid off by the seller at close (which of course they did not want to do), then the buyer would have to assume the new tax bill, which would have been $9176.24 per year or 2.29%, which was $764.66 per month. The $21,000 in upgrades did not add $21000 in value to the home; no buyers wanted to pay the additional taxes (especially at that interest rate; buyers that normally qualified for $400k did not qualify for the home because of the added extra tax expense; and the seller did not want to pay off the loan – so the end result was that they had to keep the house, and are now working on trying to pay off the loan.

If you are considering energy efficient improvements, then ask yourself:

How long am I going to own the home? If long term, would I be better off to get a home equity line (if possible), at a much lower interest rate? If not, then a HERO loan may be a good option for you.

Always check with your tax accountant to determine if the loan payments or interest (even though they are in your “tax” bill) are tax deductible. If not, again, a home equity line may be a better option.

If you are planning to sell in the short term, how much of this expense will be reflected in an increase in value? Even if dollar for dollar, if the buyer is the one that assumes the loan/taxes and are affectively paying for the upgrades, then they will want to reduce the amount paid for the home commensurately.

As always, simply research and make an informed decision before moving forward, and, let me know if I can be of any help.

Carol Kirksey

BROKER

CAN A CREDIT REPAIR COMPANY ACTUALLY HELP? READ MORE….

 

CAN A CREDIT REPAIR COMPANY ACTUALLY HELP?

 

The answer is maybe — but they can’t do anything that you probably couldn’t do yourself, for free.

 

Anything on your report that’s bringing down your credit score is going to stay on, if it’s accurate information.

 

So, if a credit repair company promises to remove negative information such as a bankruptcy or judgment, and they want money up front to do it — run.

 

Credit experts say that only time, effort and a solid plan for repaying your debts will improve your credit-worthiness.

 

There are plenty of unsavory operators out there, so be careful. Many consumers have lost hundreds if not thousands of dollars to scammers who take their money and do nothing to improve their credit.

If you or someone you know is trying to groom their credit report to buy a home, have them contact me and I will help them with a solid plan at no charge.

 

Carol Kirksey

BROKER

“OVER 2,000 HOMES PERSONALLY SOLD”

WHAT IS AN AITD

The term AITD stands for All Inclusive Trust Deed, also commonly known as a wrap-around mortgage, or “wrap”.

 

TO READ MORE FOLLOW THIS LINK

WHAT IS AN AITD
The term AITD stands for All Inclusive Trust Deed, also commonly known as a wrap-around mortgage, or “wrap”. The AITD is typically used in low to no equity markets. When a seller has no equity and needs to make a move, this tool can be used, although there are potential risks that everyone needs to be aware.
In a “wrap” the seller extends to the buyer a junior mortgage which “wraps” around and exists in addition to any superior mortgages already secured by the property. Generally, the junior mortgage is equal to the superior mortgages in dollar amount, rate and amortization, but normally has a shorter term of 2-5 years. The buyer may be asked to bring in additional cash to cover costs to close, or if there is equity in the property, to cover the difference between the note amounts and the market value. AITD’s are sometimes used when the buyer cannot get financing in the short term, but expects to be financeable in the near future.
The new purchaser makes monthly payments either to the seller or an independent party who is then responsible for making the payments to the underlying mortgagor(s). If the new purchaser defaults on those payments, the seller has the right of foreclosure to recapture the property.
Possible Issues:
Most mortgages have a “due on sale” clause. If the superior mortgagor(s) become aware of the sale, they can potentially call the entire note due and payable, and if the seller cannot pay, the lender could possibly foreclose. That is also a danger to the buyer if they have contributed cash towards the transaction. You may hear of a suggestion to not “record” the new grant deed to the buyer to help avoid the mortgagor knowing of the transfer; however, if the grant deed is not recorded, the property could become subject to liens/loans against the seller.
If the borrower does not pay, the seller is still liable for the original mortgage(s), and if he cannot pay, could face foreclosure. The seller also would have to incur the time and cost of foreclosing on the buyer to get the property back.
The buyer could also make payments to the seller, only to find out that the seller is not making the mortgage payment, and the original mortgagor(s) can foreclose.
The bottom line is that AITD’s can serve a very useful purpose for both buyer and seller as long as all parties are aware of the risks involved and do their due diligence prior to entering into a contract.

https://inlandempireneighborhoods.com/blog/featured-blog-posts/2036/