We Specialize In These SoCal Area Communities

Alhambra - Arcadia - Duarte - Azusa - Pasadena - West Covina - Chino Hills - Diamond Bar - Glendora - Fullerton - Rancho Cucamonga - Brea - Walnut

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This Is Where Our Market Is Heading

Our real estate market operates in seven- to 10-year cycles. We are in year six from the last downturn, so we are keeping a close eye on any changes in the market.

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Real estate markets operate in cycles. Most of these cycles last seven to 10 years. The first one I experienced started in 1983 and lasted until 1990. In 1983, the market was normal. In 1986, we saw a big decrease in interest rates, which dramatically increased affordability and also led us to a big wave of refinances. Then in 1990, things started all over again.

No matter who wins the election, interest rates will likely go up.

The last recovery we had stopped in 2011, so we are six years removed from that. This cycle has been very interesting because the seventh year will fall under a new presidential administration. Who knows what will happen. One thing we do anticipate no matter who wins is that interest rates will start to increase.

As for our current market, we are seeing lots of positive trends. We took the numbers from January 1 to July 31, 2015, and compared them with the numbers from the same time frame in 2016. Overall, the average price of a home is up slightly, from $570,000 last year to $576,000 this year. Here’s what has been happening in a few specific markets.

In Chino Hills, we saw a lot of positive signs. From January 1 to July 31, 2015, there were 509 homes sold for an average price of $607,000 in an average of 65 days. For the same time period in 2016, the average price increased to $623,000 representing a 2.5% increase in value and the number of sales and the average days on market stayed pretty much the same. 

Another market we looked at was Arcadia. We are seeing the opposite happen here. In 2015, they had 365 home sales for an average of $1,372,000 in 66 days. This year, home sales dropped to 349, the average days on market increased to 69, and the average home price dropped by 3% to $1,295,000.

One more thing I wanted to mention is that I would love the chance to meet up with some of you in October to talk about real estate investing and what your plans for next year are. If you are interested in meeting up, give me a call or send me an email. I would love to hear from you. I’m also always here to answer any questions you may have.

The Merits of the Small Business Administration Loan

The Small Business Administration loan is a product that not many people know about, but it can help you to purchase a commercial property with a business for as little as 10% down. In some cases, the loan can be 100% financed. 

Under the U.S. Small Business Administration’s various SBA loan programs, you can borrow money for nearly any business purpose—including adding to working capital, purchasing equipment, refinancing other debts, buying real estate, or even funding the acquisition of other businesses.

SBA loans are favored by many because they have the lowest down payments, the longest payment terms, and they’re suitable for many different business purposes. However, these loans sometimes require collateral and paperwork can become lengthy. 

This loan is great for expanding your existing business or funding new business ventures.

The most common misconception about the SBA is that the agency lends money to businesses. The SBA doesn’t directly lend money to businesses, instead, you get SBA loans from a bank that participates in SBA financing. This loan is great for expanding your existing business or funding new business ventures.

There is a very good article at Fundera.com to explain these loans in further depth, or I know professionals that can speak with you personally about the merits of these loans.

Until next time - stay safe and stay happy!

Southern California Real Estate Agent: 6 ways to avoid home transaction disaster

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As we head into the summer months, the hottest time for buying and selling a home is here. Although it’s a great market to get a deal done in, there are plenty of ways for your deal to fall apart. Here are six areas to focus on so you make sure that doesn’t happen to you:

1. Credit: A lot of loan officers and Realtors forget to have important discussions about credit with their buyers. If you've been pre-approved for a home loan, you should not be using your credit card to make any large purchases. It could affect your credit score or your debt-to-income ratio just enough to cause your loan to be denied. 

2. Home inspection: A home inspection helps both buyers and sellers figure out what is wrong with a home. If defects aren’t well explained by an inspector, they may be overblown. Buyers and sellers need to work together to compromise on who is going to pay for what fixes. 

3. Pre-qualification letter: This letter means nothing if you don’t have a proper pre-approval. They will go into your credit and income more in-depth in the pre-approval. 

4. No money: When you don’t have a proper pre-approval, you don’t realize how much cash you’ll need for the transaction. You’ve got to pay for fees, inspections, closing costs, and have cash reserves. If you run out of money, your loan will get denied.

5. Not keeping calm: When you don’t have a level head, you are much more prone to making personal or irrational decisions that aren’t in your best interest. 

6. Cold feet: After the excitement fades away, many buyers get cold feet when they have to write a check for closing costs, appraisal, and more.

Although it’s a great market, there are plenty of ways for your deal to fall apart.

Any of these six problems can cause a deal to go by the wayside. We just want you to be prepared and have the right expectations throughout the process. If you are thinking about buying or selling, give us a call or send us an email. We would love to hear from you!