In any event, it is still sold on supermarket shelves today…I just don’t know why.

Well, in any case I am in the midst of studying for my ePro designation and we are in the midst of a lesson on email. Whenever email and marketing are being discussed together, the topic will turn to SPAM as it is now commonly known in the 21st century,

What I find interesting is that the term was first coined in marketing as a result of a Monty Python skit. You have to enjoy British humor – it is not exactly the type of stuff we watch everyday here in the states – but it is funny, non the less.

Take 3 minutes and watch this YorTube Video:

OK, stop laughing and get back to work now…

Unfortunately, this is a very short article of only 116 words – but powerful words that got me to sit up straight in my chair and take notice. Powerful enough for me to put out a warning – not only to my own team and office but to everyone in the real estate industry that reads what I share.

The short version is that 3 people went to a vacant home for sale at 8 o’clock t night, 2 were let in and then ambushed once inside by a pair of armed gunmen. They were robbed at gun point. When the crooks fled, apparently they were not counting on the 3rd person waiting outside by the car – a woman whom the thieves shot in their get-a-way. The woman was treated for a non-life threatening injury – but just the same, she got shot looking at a house she wanted to buy. The bad guys got away.

I wish there might have been another 100 words or so top answer some of the questions I have. Apparently the woman was the sister to one of the men and the other was a friend that they wanted to show the home to. The article says ‘another man’ let the pair in. He later disappeared and has not been found.

So who is this ‘other guy? A bona-fide agent…or? Was he in cahoots with the bad guys? What kind of neighborhood was this…multiple-million dollar homes – working class neighborhood or inner city ghetto?

Does it matter? No, what matters is your safety – so please be careful whenever approaching a vacant home.

I realize that first time buyers are frustrated by ‘the system’ and that they want to take advantage of the current real estate market while they still can. Many fear that the market will quickly turn and they will be unable to afford a home ever again, once the market changes and goes back up. Many are anxious and even stressing over the thought of not being able to take advantage of the Federal Governments $8.000 tax credit for first time homebuyers.

Regardless of the circumstances, agents are enabling their clients to commit some fraud in the hope of earning a commission. Or perhaps, some of the slickest buyers are being even more despicable by bringing in multiple real estate agents into their web of deceit, in an attempt to buy a home in this current market and times of financial uncertainty.

The frustration for many wanna be homebuyers escalates week after week as their agent takes them out for a tour of new homes on the market followed by an hour or more of paperwork and several days before finding out that the home they wanted to buy has been sold to another buyer.

THE MULTIPLE OFFERS BUYER

Whether it is buyers instructing their agents or agents suggesting to their buyers is unclear; but buyers are now writing offers on multiple properties at the same time. In essence, they are treating our industry like a pile of SH*T – thinking they can throw enough of it against the wall to see what sticks.

My personal frustration comes from one of my active bank owned REO listings that has had 4 offers accepted by my asset manager only to have the buyers turn not sign the counter offers and addendums – because they bought another home.

So the thinking is if you write 10 offers and one comes through, great, you got a new home. If two offers are accepted – even better you have a choice. When three offers are countered then buyers are feeling like they are in control.

HOMEY DON’T PLAY THAT GAME

OK. I may be dating myself to the 80’s variety show that launched the Wayan Brothers and Jim Carry – In Living Color. That’s OK, it just lets you know I’m old enough to have gone around the block myself once or twice and I am not going to be a participant in your games.

So how do I stop you, you want to know. That’s easy – If you want to play you are going to have to pay.

Here is the new rules:

One, If you are an out of town agent and you don’t have access to my electronic lockboxes then you are going to have to come to my office and pick up a key – leaving a $25 key deposit.

Two, if you want to submit an offer I will only process it once I have your clients earnest money deposit and yes I will deposit it directly into the trust account on the day it is received. If you are not accepted your money will be refunded right away. If you have opened escrow on another home then we will have to figure out what steps to take to see if you are or not entitled to a refund of your deposit. I’m sure it will take at least a week or two to have my attorney review the situation and offer me the proper legal advise…something I would strongly suggest any agent who willingly plays this game to get. I can’t tell you where it is – but as one professional to another, we both know this is not the way we are expected to treat one another or the public – and yes my corporate / bank seller is still the public. Lets not forget who is taking the bath here – not your client with the sense of entitlement.

So go ahead. And “Make My Day”. For those who are too young to remember that was a very famous Clint Eastwood line form one of the Dirty Harry Movies.

As an REO Listing agent I have the opportunity to see and process many offers from agents across the state of California. My own personal preference is to work with a local agent because I strongly believe that all Real Estate is local and that the REALTORS involved in the transaction should be too. There are many reasons for this that I will not elaborate on in this article.

What I can say is that as an agent for the seller, I am bound and obligated to present ALL offers that are presented to my seller – just as if they were any other seller. I do not have the luxury of picking and choosing. My team and I process all offers in the sequence they are presented.

PROCESS THE OFFER

Once an offer is received, I take it upon myself to contact buyers’s agent and discuss the terms spelled out in the offer, as I perceive them to be. You see, REO Listing Agents do not pass along your paperwork to the seller. We digest what we read and summarize it. Different asset managers and banks have different formats but in essence we break down about the 10 to 15 most relevant highlights of the offer and add a short paragraph to summarize it.

Once I speak with the buyers real estate agent, I will then make contact with the loan officer who signed the pre-qualification letter to make sure that it is both legitimate and to access the probability of the buyer actually closing escrow.

I will only submit the offer to my client after I have completed my due diligence. If after 24 hours I still cannot reach either of the parties on the other side of the transaction, I do notify my seller – but I also emphasize that I have not been able to communicate effectively with the other side, and ask how they want me to proceed.

Now, right or wrong I am only human and yes like all of my species we are subject to influence. If the agent or loan office is not cooperating with me now, why would I want to push their offer through with any sort of priority? Certainly, if I have a hard time reaching them now, why would I want to enter into escrow with these people?

INFLUENCE…Is it Right?

Truth is agents can influence and win me over by sharing the details of what their buyers have been through – both in the process and in their lives.

Let me give you an example. Local Agents in the Hemet – San Jacinto Valley are aware that I have lived with cancer in my family for over a dozen years now, with my wife – many of who know her. So, when I recently got a call from an agent who is a cancer survivor and she shares with me the story of her buyer who has a child that has been diagnosed with cancer…well trust me, they found a soft spot in my heart. If their offer is as good as the rest, don’t you think I could find a way to give it the nudge to move it forward above the rest? Of course I can and yes I do.

No, don’t go reading into this that I sabotage offers and only process the ones I want for the agents I like – or heaven forbid that I should double end a deal with my own buyer. After all, whose sign have they been calling on for 2 weeks before it ever went in the MLS?

My personal belief is that any agent who does not sell their clients offer hard to the listing agent is not providing their clients with any justice and may even be guilty of not providing a the benefit of fiduciary duty. In my opinion the buyers agent should initiate the call to the listing agent before the offer is ever submitted – you never know what you may find out.

What I am saying is that as a REALTOR I have a duty and responsibility that I take very seriously and that I am also able to use factors besides numbers to offer my influence. Remember, the seller wants my OPINION and that’s what I offer. Don’t you? Of course, so lets move on and not make this the topic…after all, you want to know how to get your offer accepted, right?

HIGHEST AND BEST

Not so long ago, when we had multiple offers on our REO Listings, the asset manager would look at the top 3 to 5 (depending on how many offers we had) and instruct us, as the REO Listing Agent, to go back to the buyers agents and ask for a final ‘Highest & Best’ offer.

The market here in California has changed significantly with the recent moratorium. The principals of supply and demand are definitely at work as many wanna be first time home buyers are all scrambling to take advantage of the $8,000 federal tax credit along with cash investors that believe we are at the very bottom of the market. Add to the formula that because of the moratorium there have been very few new properties entered in the MLS for sale.

The trend I am seeing today is that the banks are starting off asking for top dollar, based on the local market conditions…and getting it. The homes may sit on the market a bit longer – but the one universal truth about the Hemet San Jacinto, CA real Estate market in September 2009 is that every bank owned REO Listing in the MLS will sell. I’d almost go out on a limb and say at least 98% or more will be totally gone before the end of the year. (That’s a big fat limb that I’m not worried about falling off of.)

Today, when we have multiple offers, I don’t think the banks are looking at price. I have had several offers this month 100+% of list that have been rolled back to list. The asset managers and banks have gotten smart with what the buyers have been doing – bidding up to a ridiculously high offer knowing that the home for sale will not appraise. The thinking has been that the banks will now have to renegotiate their position. NOT!

Today, if you want to writ an offer for over list – then we will want to see the proof of funds for the difference between the list price and your offer amount and we want to make sure there is no appraisal contingency.

SO, WHAT CAN Y OU DO?

My team and I have coined a phrase in our office that we use to describe a clean offer that is hard for anyone to turn down. We call it a “Sexy Offer”.

A Sexy Offer has nothing on it (hence the reference to sexy). There are no contingencies – whatsoever. The offer does not ask for closing costs, it doesn’t ask for a home warranty or even a Natural Hazard Disclosure report (which now only costs $114). These offers want nothing more than to buy the home AS-IS.

When an offer is ‘Over Sexed’ the buyers agent hand delivers it to my office with the actual earnest money deposit which is spelled out as non-refundable in the offer. Honestly, can it get any better than this?

Of course these offers are not for everyone – and certainly not the ones who have a weak heart.

Good Luck and Hope to see you in Escrow,

Blessings to all who read,

John Occhi, REALTOR®
www.JohnOcchi.Com
Hemet – San Jacinto Valley
951-6564-5550

Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet – San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.

Serving California and Riverside County zip codes of 92501, 92503 , 92551, 92555 , 92562, 92563, 92504, 92505, 92557, 92553, 92506, 92507, 92590 92591, 92508, 92509, 92570, 92571, 92592, 92399 , 92584 , 92596, 92820 , 92571 , 92543, 92544, 92545, 92583, 92582, 92879, 92580 , 92530, 92532, 92881, 92882, 92567, 92518, 92883 , 92549, 92561, 92220, 92223, 92028, 92088

With the decrease in inventory there is definitely an increase in competition for properties in the Hemet – San Jacinto, CA Valley. When we have a good house, one that hasn’t been abused too badly, in a good neighborhood there won’t be a lack of buyers, in this real estate market. The Excellence in Real Estate Team at Allison James Estates and Homes just recently closed a sale that generated 21 offers in the 72 hours the seller required us to keep the home listed in the MLS and on the market, before they would consider an offer.

With the competition this fierce it is critical that buyers have their financing done right the first time. I want to take this opportunity to do a “Shout Out” for one of my local lenders, Ms. Hilary Wilkinson with Patrion Mortgage, the mortgage division of Altura Credit Union.

Ms Wilkinson and her team at Patrion Mortgage bring something besides unsurpassed service to the table – they bring me confidence that when they say they can fund a loan – it gets funded. When they say they can fund a loan in 30 days, it only takes 30 days! In my business that’s HUGE. Hilary does not make excuses – she doesn’t have to because she produces results.

Perhaps what I like best about working with Hilary is that she doesn’t just pre-qualify her borrowers she takes it the extra step and assembles their loan package for a full blown under writer pre-approval.

Hats off Hilary, and thank you for your continued dedication to your profession. It makes me proud to know you and work with you.

Once the banks finally take possession they must be cleaned up- and made ready for sale, often by the REO Listing Agent assigned to these assets of the bank. I know, this is what I do.

Since the Hemet – San Jacinto CA market has traditionally been one of the lowest priced areas for home ownership, it should be no surprise that our inventory of bank owned homes for sale is still one of the lowest in all of California.

May of our REO homes are prepared and marketed towards the first time home buyer who generally does not have a lot of cash to buy a home so they are often attracted to a FHA Loan that only requires 3.5% down payment by the borrower.

Although there are requirements that the borrower must adhere to in order to qualify for a home loan there are also guidelines that the home the buyer wants to purchase must meet. The requirements imposed by the FHA are spelled out in Section 1103 of FHA Guidelines.

The FHA Guidelines used to be very strict; however in the last few years the FHA has reinvented itself and now the “FHA has shifted from its historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property conditions that rise above the level of cosmetic defects or normal wear and tear.”

In the old days, FHA rules prohibited financings where the property had cracked window panes, cracks in sidewalks, signs of “poor workmanship,” defective floor finishes, leaky faucets, worn out or buckled carpeting, missing handrails on staircases, among others. Not only did sellers have to pay for repairs when their purchasers applied for FHA financing, but they had to submit to re-inspections — all of which ate up time and sometimes killed the sales transaction altogether.

The following report covers the common problems that need attention when financing a property with an FHA loan in the Hemet – San Jacinto Valley. This list is NOT the official HUD policy and is not intended to cover everything. It is only my interpretation of HUD requirements which like everything the government gets involved with is always subject to frequent revision. Different lenders and appraisers will have their own interpretations. Its intended use is for real estate agents and buyers alike who need a basic understanding of HUD property requirements.

AS-IS vs. REPAIRS

FHA loans at one time would require that a whole laundry list of items be corrected prior to the new buyer closing escrow. Today that has changed.

“FHA now permits “as-is” appraisals [on property] when minor property deficiencies, which generally result from deferred maintenance and normal wear and tear, do not affect the safety of the occupants or the security and the soundness of the property. FHA no longer requires repairs for these types of minor cosmetic deficiencies.”

Here are some examples of what conditions are no longer mandatory for FHA funding:

– Missing Handrails
– Cracked or damaged exit doors that are otherwise operable
– Cracked window glass
– Defective paint surfaces in homes constructed post 1978
– Minor plumbing leaks (such as leaky faucets)
– Defective floor finish/covering
– Evidence of previous (non-active) Wood Destroying
Insect/Organism damage
– Rotten or worn-out countertops – Damaged plaster,
sheetrock or other wall and ceiling materials in homes
– Poor workmanship
– Trip hazards
– Crawl space with debris
– Lack of all-weather driveway surface

What the FHA is most concerned with today are true Health and Safety issues. Here is a sample of what may Slow Down or Stop an escrow that is financed with FHA Money:

– Inadequate access/egress from bedrooms to exterior of
homes
– Leaking or worn out roofs
– Evidence of structural problems
– Defective paint surfaces in homes constructed pre-1978
– Defective exterior paint surfaces in homes post
– 1978 where the finish is otherwise unprotected

There will be issues that may require the FHA to have additional inspections performed if the appraisal reveals any of the following:

– Standing water against the foundation and/or excessively
damp basements
– Hazardous materials on the site or within the improvements
– Faulty or defective mechanical systems (electrical, plumbing
or heating)
– Evidence of possible structural failure (e.g. settlement or
bulging foundation wall)

APPLIANCES

There is a huge misconception about the FHA actually requires and what Underwriters want in the property. Often times the underwriters own desires trump the FHA Guidelines – especially when it comes to kitchen appliances.

Section 1103 of the FHA Guidelines require that a home for sale must have ‘space’ for cooking. The guidelines do not specify how food is to be cooked or stored and there is no requirement for any specific type or even the presence of any appliances. Local ordinances and building codes must be adhered to especially when it comes to having the right amperage available for kitchen appliances.

If appliances are in a non-working condition and the seller is not willing to deal with them, then we will generally remove them from bank owned homes before the appraiser ever shows up. This then should meet the FHA Guidelines; however bear in mind that individual under writers may read the guidelines differently and require that working appliances are there and properly functioning.

HEAT & AIR

I kind of find this funny and anyone who has ever spent time in the Hemet – San Jacinto, Valley in Southern California because a heater that will heat the entire home is required but air conditioning is not. Even if there is a non-operational AC unit, the FHA guidelines are not going to be enough to get the unit fixed or replaced.

POOL

If there is a pool then it must have a pool pump that will circulate the water in the pool. There must also be enough water in the pool so that the pump can effectively circulate the water in the pool.

There are no test requirements imposed by FHA guidelines but the water in the pool cannot pose a health or safety risk – so that means no mosquitoes or algae. I guess it’s like a lot of other government rules and regulations – they continue to contradict themselves and when brought to the attention of the bureaucrats they just right more rules to follow.

MANDATORY INSPECTIONS

While local underwriters and lender imposed conditions may mandate that a home being purchased with an FHA guarantee be inspected for termites, septic and well conditions and even a roof inspection the FHA no longer requires any of these to fund a loan.

All the FHA wants to know in today’s market is that the home must be habitable and safe for anyone living there. Repairs are no longer as necessary as they once were. Their appraisal requirements have been standardized so that only conditions that actually affect the structural soundness of the home and the safety or the occupants is now required.

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I offer a blueprint to success in real estate investing…

1) Know what is Important to you in your life. I’m not just talking money – life itself has value – what is it that makes you tick. Figure this out and if real estate investing is not for you, then it’s not for you.

2) Clean Up Your Act – If you have issues with credit, taxes, ex-spouses – anything that disrupts your life or has the potential to – get it together and deal with it. If your life is over-complicated then you can be certain these negative forces will have a negative impact on your real estate investment strategy.

3) Know what you are doing. Yes, I understand there is nothing like experience to figure things out but for crying out loud have an idea of what you are getting into. If you haven’t ready any books on the whole idea of real estate investments, then go to the book store and start reading. Go to seminars and classes – both online and in hotel rooms and the local community college.

Figure out where you want to invest and regularly drive through the area. Find yourself a local REALTOR to work with and get familiar with the local market trends.

4) Have your REALTOR refer you to a lender that can work with you in your situation. Will you be using conventional financing? How about Hard Money? Maybe you have your own cash to spend. In an event every type of financing available is as different as every home that you will look at. So, start to build your Personal Real Estate Investment Team now so you have the resources ready to roll when your first golden opportunity presents itself.

5) Find the right deal. With the help of your local area expert REALTOR, you should be able to find a bank owned REO home priced 10%, 20% or even 30% or more below other homes in the neighborhood. Make certain that you don’t get over excited and fall in love with the first house you find. Remember, you are an investor now and this is business. Save the emotion when you buy your wife the big house on the hill with the pool and view that you always wanted…let me repeat myself…THIS IS BUSINESS.

So, first, once you have determined that the money and value is in the right range you’ll want to inspect the property. Don’t start getting cheap on me here. Do yourself and everyone else a huge favor and hire either a general contractor or a real estate inspection company to go through the entire home with you. Don’t do it yourself, please. I don’t care what you know – the idea is to have an OBJECTIVE set of eyes on the property.

Next, you are going to have to figure out an ESTIMATED repair cost. Break each project down to individual projects. Estimate time and materials as well as an allowance for overages. Do this for the interior and exterior.

Finally, look at all the numbers and complete your due diligence to make sure this home will meet your goals.

6) Have your REALTOR write the contract and present the offer. Again, know your limits and don’t spend any more than you have allocated – knowing that there are still some hefty expenses to be paid, if you are fortunate enough to close escrow.

7) Now that escrow has closed – get to work. You should have set side the time to take care of all the work that needs to be done. If this is going to be a series of weekend projects, then you better have some hefty reserves to cover the several mortgage payments you’ll be covering while strolling through the repair process and getting the place either rented or sold –depending on your strategy.

No one can expect you to do all the work yourself – but do as much as you possibly can. Don’t be afraid to learn as you go on some of the basic projects and repairs. On the other hand, there is nothing embarrassing about hiring a professional to do a professional job.

Marketing begins the day you own your investment property. Start with a “For Rent” sing in the yard. As the home gets closer to rentable condition, start with other forms of marketing including classified ads and places on the Internet, like Craig’s List..

As you begin the interview process, you’ll need an application as well as either a rental agreement or a lease – choice is yours. Ask lots of questions, like, “Why are they moving?” and “How many people will be in the home?” Be careful of your questions – if you ask about kids and spouses you might not like what you hear and you can end up discriminating and explaining your decision to a judge.

Make sure you thoroughly investigate all references – including former landlords and employment. It is too easy these days for renters to fake this type of information, with all of the cell numbers and VOIP (Internet phones) that are easy to access. I find the best way to check anyone out is to Google them – especially if they are a credible reference.

A term you may want to consider is paying for the water and a gardener to keep the place looking good. Factor the cost into the rent, but this way you have eyes on the property every week. If you, as the landlord were to show up that often you would be perceived as a stalker and a nuisance and most judges would love to slap you around for these infringements on the civil liberties of your tenant…so send the gardener instead.

Then you just have to do your paperwork and collect your money.

9) Talking about money, I recommend a separate bank account for each investment property. This may be pre-mature, but consider a separate LLC for each property as well. All of your communication should be separate from your personal life. Use a PO Box and a cell phone.

It is very important that you keep good records of both the financial aspect of the real estate investment as well as any and all conversations you have with your new tenant.

10) Figure out what you did right and what went wrong. Learn form it and grow with the experience and lets go do it all over again.

This is a collection of 77 of the absolute strangest tattoos you will ever see anywhere…and I mean anywhere. OK, some of them may just be a little off and make you wonder why. But let me tell you, there are some really scary looking people here – so if you are prone to nightmares – do yourself a favor and don’t click on the link. However, if you just like to people watch, from the safety of your own computer they let the voyeur in you shine…

http://www.ktla.com/community/photos/ktla-bad-tattoos-gallery,0,3161175.photogallery

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