You can buy a real home in San Diego for under 400k

Posted on August 3, 2011 by Gavin Linde - San Diego REALTOR

There were quite a few years where for 400k all you could get was a condo in San Diego or some beat up old apartment, but times are changing. I am working with a buyer right now in the market for a 400k home and it is amazing to me the great homes you can buy for that amount.

Let me put it in perspective, if you have good credit, some money for a down payment, a job, and spending $2500 a month right now on rent for your family, you need to look into buying a home. There are plenty of condos anywhere from 150k to the limit in San Diego but my buyer wants a home with at least 3 bedrooms, 1300 sq ft, 2 bathrooms, 2 car garage, backyard, and fully upgraded ready to move in. That combo used to be hard to find in that price point, but know I am seeing perfect ready to move in homes in great areas.

Let’s not kid ourselves this is not La Jolla by the beach properties but they are really close by and 3 bedrooms. 3 Bedroom homes are great to live in for families and also great to rent out since a family can live in them comfortably, and I think the future is a lot of rentals as the 11 million distressed home owner eventually have to move out of their homes.

What San Diego is faced with is a growing rental demand for property, since California is one of the states hit the hardest with distressed homes the potential to buy something now and rent out are huge. I am encouraging my buyers to start looking at homes that are great value, size, and located well in San Diego. This way the rental possibility if they choose not to live in this home are huge. One area I am seeing some great properties in San Diego in that price range is Clairemont. Traditionally these are older homes where they are now fully upgraded, hardwood floors, wired for flat screens, and stainless steel appliances. These San Diego homes are ready to move in.

I recently saw one that even had a large pool and hot tub and a huge front and backyard, the neighborhood was predominantly older retired military and to me that is a great quiet neighborhood. Regardless of what you read in the press about San Diego real estate I think now is great time to start looking for a new home or an investment property that you rent out or live in. Inventory continues to grow daily and property reductions are very, very common. Due to the majority having finance restrictions it really favors the cash buyers or the well qualified. If you fit that criteria and you are curious as to what kind of home you can buy in sunny San Diego I would love to help you. If not, let’s see how we can get you into a better position to get a home in the near future. Contact Me by email and we can start working on making you a San Diego real estate owner.

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Using a VA loan to buy a home in San Diego

Posted on July 30, 2011 by Gavin Linde - San Diego REALTOR

I spent the morning over with the good folks at Military Home Programs and they really opened my eyes to the ability of our active and retired military in San Diego and their VA loans. In San Diego right now we have a significant inventory of homes that are not moving on the market for a many reasons.

One of the biggest reasons is financing, to buy a new home is getting more and more difficult with traditional financing and if you pass the credit part coming down with the 20% deposit can be a huge challenge. I am working constantly with buyers who are excited to buy a home at these great prices of real estate in San Diego only to find out they don’t qualify for a loan. Thank goodness I also have cash buyers too and they are very wary since the prices of real estate in San Diego is not at the bottom yet.

I am working with a buyer right now who wants to purchase multiple homes in Vista, San Marcos, Escondido, and Oceanside for resale’s and for rentals. As you know there is a large contingency of active military that lives in those areas since it is close to Camp Pendleton. As more troops are being sent home thank goodness we are looking to provide great homes for them and their families. So that is what brought me to a seminar with Military Home Programs this morning.

San Diego is home to the largest military complex in the world, 35% of USMC and 32% of the U.S Navy is stationed here and around 100 000+ active duty members reside in San Diego. All military members past and present have access to a VA loan and it never expires. Just a few of the benefits of the VA loans are No down payment required, no mortgage insurance, lower interest rates, credit and income standards are not as strict, and no prepayment penalties

If you are a  member of our military service past or present you really should be taking advantage of your great loan program to buy a home in San Diego. The fact that you put 0% down is huge in this day and age of buying a home, and if you are paying rent you are throwing your money away. Every day I see the most amazing homes for singles, couples and families that are very affordable right here in San Diego.

I would love to sit down with active and retired military here in San Diego and help you find a new home. The prices of homes in San Diego are at such a discount right now and with your VA loan you have a huge advantage over the rest of the buyers. If you are reading my real estate blog and know anyone in the military past or present I would love the referral. I know finding a home right now is a great time, and after this morning I have just the lender to help you with your VA loan.

Feel free to contactme anytime I would love to show you some great San Diego real estate and with your VA loan we can put you in a new home and stop wasting the money on rent.

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Short sales add to the frustrations of the San Diego real estate market

Posted on July 25, 2011 by Gavin Linde - San Diego REALTOR

Anyone who has ever bought or  sold a home through a short sale knows it is not a pleasant process and it can go on forever sometimes. So this morning’s article in USA today about the frustration of short sales came as no surprise.

“Short sales are among the most arduous real estate transactions, often taking six months or more to close — if they get done at all.

They can be a life raft for distressed homeowners who owe more on their houses than what they’re worth, but the experience depends on a variety of factors, such as the number of lenders involved and whether there’s a hardship, mortgage insurance attached or whether the buyer has the patience to stay with the process.”

I got to say as a REALTOR® here in sunny San Diego I am seeing more and more Short Sales on the MLS when I look for homes for my buyers. My reaction is a skip over them since I know the process is just painfully long and a hard emotional road for the buyer. Where I do see an opportunity in short sales are the properties that go down the road and get the acceptance from the bank. This happens when the buyer does not qualify at the point of completion of the transaction, and now the home goes back on the market for sale and offers need to be submitted all over again.

I know a very busy real estate investor/property flipper that has bought many San Diego properties that were a short sale, got approved, fell out of escrow and he takes them for cash. My thought is the bank invests time in the transaction and if you read the article it can take 30 days to 6 months just to get a response for a short sale from the bank. Once the transaction is underway the bank has invested time and energy into the file. So if the potential buyer does not qualify to purchase at that point they don’t want to return the file to the pile on their desk.

Savvy real estate agents in San Diego have a small window of opportunity at that point to try sell the home to another buyer, and a cash buyer would most likely get the home pretty quickly. If you know of a situation where this happened, or is about to happen I would love you to contact me, the investor I mentioned above is ready to go and we could close the transaction very fast.

Make sure you follow GL Investments on Twitter and our Facebook page. If you are thinking of buying a home in sunny San Diego we would love to help you.

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Sales of real estate continue to fall

Posted on July 21, 2011 by Gavin Linde - San Diego REALTOR

It’s not a shock to me that home sales continue to fall, demand is down and ability to finance is complicated to say the least. The news that more home foreclosures are being held off,  and there is maybe up to 11 million homes in this process does not help.

So reading the article in USA today about sales of real estate continuing to fall was not a surprise.

In June, 16% of Realtors said they had home sale contracts canceled, up from 4% in May. The reason for so many cancellations remains a “mystery,” says Lawrence Yun, NAR chief economist.

But he says that tight credit conditions and low appraisals — both of which can kill home sale deals — are prime culprits. Concerns about Washington’s standoff over the federal debt ceiling may also be “causing hesitation” among some consumers and lenders, Yun says.

As a REALTOR® here is San Diego I am seeing the inventory stay on the market a very long time in my searches, to be honest for the 6 searches I have going on right now in the San Diego real estate market for buyers I have yet to see one property go into pending in the last 60 days and at least 15% of them have done a price reduction.

My buyers are having a hard time making a decision because the bottom is not here yet by any means. The bottom will be close once we are no longer a foreclosure nation and these delinquent properties are released into the market. Releasing is just one step they still need to be sold, and the price will be dictated by what the buyers can afford. Right now I am dealing with buyers in the million plus range and some in the 450k range and the inventory is solid, but they are all concerned about prices. I think we are close but I just saw a past buyer of mine lost 10% value in his property in 90 days as the seller of the home next door to him is desperate to sell so they did a huge price reduction on the exact same home.

If you are thinking of buying a home, get your finances in order, rates are low and the inventory of San Diego homes is pretty amazing. Is the bottom near, who really knows, it’s all speculation, but I do feel you are going to get great value for a San Diego home whether it’s to live in or to rent out. I would love to help you, so contact me and we can talk about your needs in the current San Diego housing market.

If you are not ready to buy a home, keep reading my BLOG I really appreciate it, you can also follow us on TWITTER and Facebook if you are more social media savvy. Let me end this by saying, I am seeing real homes (3 bedrooms with swimming pools on large lots) very affordable in San Diego and if you are renting you really are throwing your money away, the tax benefit of owning a home is great, and the potential to profit in the next 5 to 7 years on the property is foreseeable.

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Delinquent home owners get to stay in their San Diego homes longer

Posted on July 15, 2011 by Gavin Linde - San Diego REALTOR

It just keeps getting better in the San Diego real estate market. As a REALTOR I am excited for all these bank owned homes to hit the markets for my buyers but alas this morning news says they are getting delayed again at the banks. To read the full article click here, if not here is the summary of what is going on and some real estate facts.

“Companies have probably delayed foreclosures as they await the federal-state settlement, Sharga says. Major mortgage servicers submitted plans Wednesday to improve their processes that were mandated by federal banking regulators. Those plans will be reviewed by regulators and may change depending on the settlement with state and federal officials.”

“The delays mean borrowers get more time in homes without paying mortgages. They also have led to fewer distressed homes for sale, which has probably curbed price declines”

So this is now going on almost 4 years and we still have no end in sight. The chain reaction this causes goes as follows.

1) Homeowner goes delinquent on their loan

2) Bank forecloses on the loan

3) Bank takes back the home and releases to a real estate agent

4) House gets sold at fair market value

5) The sale price is now a comp in that area

Well now the second step is delayed, so we are at a halt in inventory being released and the inevitable happening, lower prices in the San Diego real estate market. I am working with a few buyers right now, and one is looking in Oceanside, San Marcos, and Vista for a 3 bedroom minimum home, and not a condo in need of work. He is shocked at the number of results we are pulling off the MLS with this criteria.

We are thinking that in the next few years we are going to have our military home at Camp Pendleton and using their VA loans, so he wants to have his 10 homes all ready for them. Last key fact about this buyer, is the home we are looking at are under the $200k price.

I took another buyer out for a drive the other day for a 3 bedroom, 1200 sq foot plus, ready to move in home, out of the 11 homes we found we looked at 5 of them. One of them is a state of the art home with a swimming pool and a hot tub, for $429k, it was really hard to look at the other homes after seeing this one.

Then I have another buyer looking for a home in the La Jolla Bird Rock or North Pacific Beach in the six figures range and we can’t find anything he likes right now. So I am hoping the banks start releasing there more because when I go on Foreclosure Radar there is a huge inventory of delinquent homes in that area.

If you are sitting at home, or at work reading this and you have a little cash in the bank, enough for a deposit or you qualify for FHA or VA, I am telling you think about investing in some San Diego Real Estate. If not for rental income, then to live in because there are some great home right now on the MLS in San Diego. Once this mess at the bank cleans up there will be more homes in San Diego for sale, it’s never too early to start looking.  Contact GL Investments aka me, I would love to share my insights with you and find you a home.

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Great time to buy a rental property in San Diego

Posted on July 8, 2011 by Gavin Linde - San Diego REALTOR

There is absolutely no doubt there are some great deals on real estate in San Diego right now. There is a ton of inventory on the MLS and it is not moving very fast due to the banks insecurities towards lending money.

I am working with a few buyers right now who are interested in rental properties to hold for the next  5 to 7 years. You would be surprised how many properties there are under the $250k price point in downtown San Diego. These investments are for those who either have cash, or have 20% to put down. There are loan programs though with large financial institutions that allow you to put down a lot less to.

If you have some money in the bank and pretty good credit, then take a look at this example for an investment property. I went on Craigslist and pulled up some down town rentals that identify the building. One that caught my eye was this one in Aqua Vista downtown. As you can see they are looking to get $1700 in rent for this one bedroom in a great building with amenities including : 24hr Valet Parking; Fitness Center; Rooftop Pool, Spa & BBQ area; and an on-site concierge.

So if you were wondering what the owner might of paid for a unit like this, not this exact unit since I don’t know the number but one exactly the same size in the Aqua Vista building the answer would be around $175k. I went into MLS and pulled up units for sale in Aqua Vista and currently only found a 3 bedroom. When I switched my search to sold I found a 1 bedroom exactly like the one for rent that sold in January of last year for $175k.

So just to run some simple numbers on this property with a basic Google mortgage calculator with 20% down, your payments as the owner on this property would be around $750 plus the HOA’s for this type of unit are $519, so your total monthly would around $1269. This unit is renting for $1700 a month, which would give you positive cash flow of $431 per month, or $5172 per year. Not a bad return for a unit in downtown San Diego, pretty sure in 5 to 7 years you make some good money on it.

For the last time, if you have good credit, some cash in the bank, why are you not considering buying an investment property in San Diego?

If this article made you think, please contact me, I would love to help you find a place or talk to you about some of these opportunities. Everyday more listings come on the market in San Diego and it’s just the beginning as the banks release them.

GL Investments San Diego Real Estate blog is new, if you like our articles please click on the little mail symbol below here on the right and send it your friends. You can also follow us on Facebook and Twitter.

If you are thinking of buying a home to live in or for investment purposes, lets first see what kind of loan you qualify for. Then we can look for a new home or condo for you and take advantage of some of these low interest rates on San Diego real estate. Contact GL Investments today!

Thanks for reading GL Investments opinions on San Diego Real Estate, now let’s buy you a new home to live in, or for investment purposes since rental opportunities are great in San Diego right now.

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How many homes are owned by the bank?

Posted on July 6, 2011 by Gavin Linde - San Diego REALTOR

If you are watching real estate lately you are aware there is a significant inventory on the MLS here is in San Diego. You are also noticing that slowly bank owned properties are making it on there, and the rate is starting to pick up.

So as not to cause a scare the numbers of real estate are painted very lightly in the press, and sometimes even painted as if it’s ok. I hate to be the bearer of bad news, but it has to get a little worse than it already is before it can better, and things have to change.

First, we need all the inventory off the banks books, you have numbers stating they foreclosed on 4 million properties already, there are another 4.2 million that are delinquent, and then another 11 million who owe more than their home is worth. So the quick math puts about 19 million homes in jeopardy roughly. Unfortunately this is a double sword, since when these properties are released the comparable properties in these areas will decrease, and that could push the 11 million a lot higher.

Second, the banks are not loaning money very easily. I don’t blame them, they have a lot of delinquent loans on their books. They also absorbed many subprime lenders and took on their notes, and quite honestly people don’t qualify as well for loans as they used too. What I mean is if you keep the same equation for a loan as was originally done with no creativity, it’s simple. Income, debt ,and credit history are the criteria for a loan, what that means is people don’t qualify for large loan amounts. Therefore they cannot afford to buy a home they want, and homes in their price range do not exist currently. The other factor to offset this is a down payment, and that the third factor.

Thirdly, in this mess of an economy who has had time to save money. At least a significant amount of money for a down payment on a home? Not many, reality is income is down for most households, expenses have gone up, i.e. insurance, and the cost of living i.e. food costs have gone up too. These few factors do not leave much in the bank account to transfer to a savings account.

The buyers I work with currently in San Diego are very aware of this reality. The biggest shock most of the time is finding out what they qualify for, it has yet to be more than they expected. Once we have the target number it makes finding a home easier, and submitting an offer too. If you have good credit and are interested in buying a home we would love to help you. The median price for a home in San Diego is down across the board and you would be surprised the number of home for sale right now.

Since this San Diego real estate blog is new, if you like our articles please click on the little mail symbol below here on the right and send it your friends. You can also follow us on Facebook and Twitter.

If you are thinking of buying a home, lets first see what kind of loan you qualify for. Then we can look for a new home for you and take advantage of some of these low interest rates on San Diego real estate. Contact GL Investments today!

Thanks for reading GL Investments opinions on San Diego Real Estate, now let’s buy you a new home to live in, or for investment purposes, rental opportunities are great in San Diego right now.

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San Diego Real Estate headlines are misleading

Posted on June 30, 2011 by Gavin Linde - San Diego REALTOR

If you are like me and interested in San Diego real estate then you are reading  the news on the current market. It’s really hard to decipher what is going on since one day the headline is bad news, the next day its good news. I am working with a few buyers right now looking for homes. Half are cash buyers and half are financed buyers with 30% plus to put down.

We have been driving around a lot in San Diego the last 2 months looking at properties and let me tell you there is plenty of inventory and it is not moving. So yesterdays headline was about more homes are under contract on USA Today is misleading. I am sure people are using the software to make offers, whether they are being accepted and executed is another story. It just makes me wonder why even make this statement and lets this article be released.

“The National Association of Realtors said Wednesday that its index of sales agreements for previously occupied homes rose 8.2% last month, to a reading of 88.8. That followed April’s seven-month low of 82.1.

A reading of 100 is considered healthy by economists. The last time the index reached that level was in April 2010, the final month when buyers could qualify for a federal tax credit. Signings are now 17% above June 2010′s reading of 75.9, the lowest figure since the housing market went bust nearly four years ago.”

The intent is there no doubt, people would love to buy a home, can they get financed is another whole story and I have yet to see any of the homes I have been looking at for buyers actually go to contract in 2 months.

So that’s over 60 days on the 40 properties I am watching for buyers and 8 of them have had price reductions so far.

I do like this morning article on CNBC about all these real estate headlines we are reading.

“If one third of the market is now distressed properties, largely purchased by investors, and the first time buyers are lower than usual, and the tight lending environment is cash-strapping many move-up buyers, then you can’t really look at seasonality because the seasons aren’t what they used to be.”

Yes, yes, yes, nothing is what it used to be and this current real estate market is totally unpredictable. If you are looking to buy a home is this the bottom, I would say no, is it going to fall much further, probably not. The bank is sitting on more homes right now than ever, and eventually they will be released and property comps will go down because the homes in the area with bank owned properties will cause that to happen.

So like I tell my buyers, be patient, inventory is coming on the market every day, get your finances in order so when the time is right the transaction will be smooth. My cash buyers are sitting pretty because they can really offer close to bottom pricing, quick escrows, but still all due diligence has to be done, so once again patience.

I think the rental market in downtown San Diego is strong right now, and prices on studios and 1 bedrooms are pretty cheap, so if you have 20% down, i.e. about $30 000 in the bank and good credit, give me a call let’s get you something small that you can sit on and make some money in the next 5 to 7 years.

Since this San Diego real estate blog is new, if you like our articles please click on the little mail symbol below here on the right and send it your friends. You can also follow us on Facebook and Twitter.

If you are thinking of buying a home, lets first see what kind of loan you qualify for. Then we can look for a new home for you and take advantage of some of these low interest rates on San Diego real estate. Contact GL Investments today!

Thanks for reading GL Investments opinions on San Diego Real Estate, now let’s buy you a new home to live in, or for investment purposes, rental opportunities are great in San Diego right now.

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Buying real estate for cash in San Diego

Posted on June 27, 2011 by Gavin Linde - San Diego REALTOR

If you are sitting on cash now is a great time to start looking for properties to live in, or for investment without a doubt. You wouldn’t believe the deals right now on home in San Diego if you have cash. Don’t get me wrong there are great deals on homes in San Diego for financed buyers too, the problem is the bank is not giving out the financing like they used to. This is causing offers to be cancelled and deposits to be lost unfortunately for some home buyers.

A bank pre approval letter is just one step of submitting an offer to buy a home in San Diego, unfortunately the pre approval letter just shows you have a “better than average” chance of getting a loan and is not a guarantee. Cash on the other hand is cash, its up to you how much you offer and payment is a simple process since it is totally in your control.

Obviously, yes, and right now 30% of home sold are to cash buyers, that is way up from the 12% two years ago. USA Today published a great article about the rise and benefits of cash buyers in the current real estate market.

The benefit of cash buyers is they have the ability to move in and out of transactions easily and to some extent can dictate price. The cash buyers are buying properties they can rent out, sit on them for 5 years and then sell them at a handsome profit. For example you could buy a condo in downtown San Diego right now for $150 000, rent it out for at least $1200 per month. After subtracting the $300 for the HOA fees, you are netting $900 a month.

Now do that for 5 years, and you have already recouped $54000 of your investment. Then lets say the property goes up to $225 000 in the next five years, and you sell it, you make yourself about $129 000, not to bad right for a rental in downtown San Diego. Or you let it run another 5 years and now you have recouped $108 000 of your original $150 000, so the profit is even bigger when you sell it. I would venture to say its not a bad way to make money in the current San Diego real estate market. If you have more cash you can imagine the pay out would be bigger, and yes your cash is tied up in the property, but would you rather have it in an income generating asset or sitting in your retirement fund?

If you look at people with true wealth that can stand the test of time over generations its usually a person involved in land or housing, an inventor, luck of the market, or a revolutionary. I would highly advise people who are retiring to put some money in the housing market, the income is great, and the potential for future appreciation at these low prices are great too.

Since this San Diego real estate blog is pretty new, if you like our articles please click on the little mail symbol below here on the right and send it your friends. Thanks for taking the time to read the GL Investments Real Estate BLOG, we really appreciate it, and we look forward to getting you a new home at these amazing prices and interest rates. You can also follow us on Facebook and Twitter.

If you are thinking of buying a home, lets first see what kind of loan you qualify for. Then we can look for a new home for you and take advantage of some of these low interest rates on San Diego real estate. Contact GL Investments today!

Thanks for reading GL Investments opinions on San Diego Real Estate, now let’s buy you a new home to live in, or for investment purposes.

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The Shadow inventory of real estate

Posted on June 25, 2011 by Gavin Linde - San Diego REALTOR

Home sales continue to drop across the United States in real estate as the home sales sink another 3.8 % from last year. To read more about this from USA Today click the link.

I am not surprised at all by this, currently financing is very hard to get, and the number of cash buyers is not enough to keep the real estate market afloat. All the cash buyers I work with are looking for steals, not deals. The deals are the prices on real estate in San Diego right now are at circa 2002 pricing, but for the cash buyers they are able to purchase homes at even lower prices due the issues with financing. What I am seeing happening is a seller lists their homes, gets multiple offers on it, the each offer falls out of escrow due to lending issues.

In steps the cash buyer and (steals)offers a low ball offer which the seller most of the time accepts since they are selling the home. What I like about the article is journalists are now talking about the “Shadow Industry”. If you read the article from USA today you will see this paragraph.

“The situation is much worse when taking into account the “shadow inventory” of homes, economists say. These are homes that are in the early stages of the foreclosure process but, because of backlogged courts or the government probes, have not hit the market for re-sale.”

This shadow industry has to hit the market at some point, and when they are all processed and on the market it will cause another huge real estate correction. I just saw a condo in UTC that sold for $178 000 in 1999, and peak at $395 000 in 2006 being offered by the bank for $202 000.

If you have the ability to get financing, and be warned you need to have money for a downpayment, or you have cash NOW is definitely a good time to be looking for a home in San Diego.

If you are thinking of buying a home, lets first see what kind of loan you qualify for. Then we can look for a new home for you and take advantage of some of these low interest rates on San Diego real estate. Contact GL Investments today!

Since this San Diego real estate blog is pretty new, if you like our articles please click on the little mail symbol below here on the right and send it your friends. Thanks for taking the time to read the GL Investments Real Estate BLOG, we really appreciate it, and we look forward to getting you a new home at these amazing prices and interest rates. You can also follow us on Facebook and Twitter. Thanks for reading GL Investments opinions on San Diego Real Estate, now let’s buy you a new home ;)

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