SoCal, CA Real Estate Video Blog with Shawn Luong

Why is it so Hard For Small Business Owners to Refinance?

There are many great San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 643-7090 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I am talking about a hot topic in the finance world. Our former federal reserve chairman, Ben Bernanke, has recently had a bit of a tough time refinancing his home in Washington D.C. Although Mr. Bernanke makes over $200,000 per speech, the fact that he is a small business owner has resulted in him being denied refinancing on his home.

Nowadays, the federal reserve is more geared toward salaried workers and those with W-2's instead of the small business owners and their 1099 tax returns.

So if you are a small business owner and filing a 1099 return, we think that it would be a good idea if you instead filed as an employee with a W-2. You can pay yourself the same amount, but if you give yourself a paycheck with a W-2, it will make things a lot easier when you try to qualify for a loan.

Rates right now are really good. Five-year fixed loans are right around 4.75% and seven-year fixed loans are right around 5.25%.

So, if you are planning on purchasing a new home or refinancing, get your W-2 pay stubs as opposed to your 1099, and make sure to keep your FICO score above 700.

Until then, keep safe and be happy.

How we helped Linda by keeping her informed

"We had a great experience. When I asked questions he’d answer and give me good advice. If I called him with a question, he’d get an answer for me right away and every week he let me know what was going on with the transaction, which I really appreciated!"

How we helped Tim with his real estate needs by always being willing to help

"We have very good results! He did everything that he promised. Even after the deal was closed, I am still comfortable in calling him to ask for advice. I’m a rookie when it comes to property management so I’m very appreciative of his help!"

You Still Have Options After a Distressed Home Sale

There are many great San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 643-7090 for a FREE home buying or selling consultation to answer any of your real estate questions.

Most of us know someone who has been foreclosed, has had a short sale, or a deed in lieu in the 6 years since the housing crisis. Many people feel there is no hope of becoming a homeowner again in the near future - but there are options out there.

We offer a loan that allows homeowners who have had a distressed home sale become a homeowner again. Additionally, if you or someone you know is in the process of a pre-foreclosure or a short sale and has been denied a loan modification multiple times or has a notice of default pending, there is still hope.

We have a rent to own program designed to help struggling homeowners. You sign a lease with an outside entity in order to stay in your home. In essence, you do a short sale, but don't have to move out of your home. After 3 years you are eligible to buy your home back without ever having to move out. It's a contract like any other - you lease your home from a new entity that will be on the title of your home. If your home is in foreclosure, that entity will sign an option for you to buy it back when you are eligible for a new loan again. When you have a short sale foreclosure, the entity will lease the home back to you so you are ready to buy it, instead of having to move.

Don't lose hope if you are in the process of having a foreclosure, a short sale, or a deed in lieu. There are options available to you! Simply give us a call or shoot us an email, we would love to help!

Being Too Conservative About Depreciation Can Cost You

As you know, we advocate building a nest egg without having to rely on social security or your company pension funds. We recommend you use real estate to be financially independent, so you don't have to rely on either the government or your company.

If you are too conservative about the depreciation of your investment property, you are doing yourself a disservice. Property tax is based on two factors: land values and improvements. Improvements can be depreciated, while land values cannot - most people use a tax assessor to estimate the depreciation of improvements.

If you have purchased a home in the last few years, you may be able to get an amendment so that you don't have to pay more in taxes than you're entitled to. We can provide a Broker Letter for you that has a different estimate of the improvement value. This could save you money on your taxes and make your real estate venture a stronger investment.

Does this sound like something you might be eligible for? Don't hesitate to give us a call. We would be happy to be your Los Angeles area real estate resource.

Thanks, stay safe and stay happy!

What Does the Merger of Zillow and Trulia Mean for You?

In a huge merger, Zillow has recently acquired Trulia for $3.5 billion. Many people have asked us what the consequences might be; in truth, not much is going to change because of it. Both companies operate under the same business model and collect advertising money from real estate and loan agents. The only bad part is that advertising on these websites will likely be more expensive because there is no longer any competition to drive prices down.

Working with an agent remains the best choice when you're searching for a home or trying to determine the value of your home. If you are searching for a home, our website is much more accurate than Zillow and Trulia. Its listings are accurate and up-to-date, so you don't have to worry about finding a home that is no longer available. This resource is available to you for free!

If you want to know how much your home is worth, avoid Zillow and Trulia. Their estimates are off by as much as 10%, which can be frustrating if you are looking for a true value. We can provide you the "broker-price opinion" of the value of your home for free. We've done this over 1,000 times in the last five years and have found them to be very accurate. We have a strategy where we price your home slightly below its market value to generate more bids; the effect is that we typically sell homes for 5% more than they are listed for.

If you want accurate and up-to-date real estate information, we are happy to be your trusted resource. For all the help you need with real estate, give us a call or shoot us an email. Thanks, stay safe and stay happy!

How we helped Cesar by keeping him informed and helping him find contractors for repairs

"He told us what we would be doing, about how long it would take, and what he was going to do. Everything came out right and we ended up getting more than we expected, it was fantastic! When I had to replace the furnace, he even gave me names and numbers of people who had furnaces and a contractor that did the work for me very cheaply which helped out a lot."

What is a homestead exemption?

With the rise in home value and the increase in equity we have been seeing, a few of our clients have asked about homestead exemptions. Some of you have have heard this phrase before, but a lot of you aren't quite sure what it means, let us explain:

A homestead exemption, if declared, allows the equity on the principle residence dwelling to be exempt from any forced sales, like if you declared bankruptcy. For a single individual living by themselves, the exemption is $75,000. With an additional family member or spouse, it's $100,000. For the elderly and disabled, the homestead exemption is $175,000 with some income restrictions.

The homestead exemption does not prevent foreclosures. Homeowners are still liable for the Mechanic's Liens. So if you would like to know more about this, we would be more than happy to share the forms you need to fill out and help walk you through them. E-mail us or give us a call and we will help you out right away.

We helped Dr. Jack get 4 offers in a few days with our excellent service

"It was an excellent experience. He’s very good and we had 4 offers within a couple days. I would recommend him to any of my friends."

6-Month Market Update for Covina

There is no better time than the midpoint of the year for an update on market conditions in Covina. With 6 months of real estate data under our belt, it's time to take a look at how we are doing in comparison to last year. The numbers look pretty good:

January - June of 2013:

8,777 homes sold
Average sale price: $381,875
Average days on market: 54
Active listings: 22,746

January - June of 2014

7,704 homes sold
Average sale price: $435,833
Average days on market: 56
Active listings: 25,584

As you can see, fewer homes have sold than at this time last year. Other than that, these numbers look pretty strong. Home prices are up, which is a good sign - the average listing price is up $45,000 from last year. Additionally, the average that these homes are actually sold for is up 14%.

Another sign the market is more normal than it's been in past years is that the number of active listings has increased 12.5%, up 25,548 from 22,746 at this time last year. These stats are good for both buyers and sellers, as there is a good selection of homes for those looking to buy, and sellers are getting higher prices than they were last year.

If you have any questions about what the market looks like in your particular area, or have further questions about what these numbers mean for you, please give me a call. I would love to help you make sense of these conditions.

4 Alternatives to the Traditional Loan

If you're considering purchasing a new home, you are going to need a loan. The question is, what type of loan is right for you? There are many alternative loan programs that can help you borrow even if you've had trouble doing so in the past. Here are 4 you should consider:

For those who have income that doesn't show up on tax returns. There are 5- and 7-year fixed-rate loans that you are eligible for. You must have a FICO Score of at least 660 and have an income that qualifies. Depending on your down payment, interest rates are anywhere from 5.25% to 7.75%.
For those in business shown as a wage earner. In this case, 60-80% of the loan amount is based on 12 months of bank statements.
For those with VOE. All that is needed for this type of loan is verification of employment (VOE). You don't need pay stubs, tax returns, or your W-2 to be eligible.
For foreign nationals. If you are looking to by a home, we can can refer you to the right loan agency.

If you have any friends, family, or co-workers that might be interested in getting a loan, I would love to help. For more information on our alternative loan programs, send me an email or give me a call. As always, stay safe and stay happy.

How we helped Ken buy a property by helping him find a good price

"When Shawn helped me buy a property, he went around and looked for a good price for me. He really helped me from the beginning until the end and everything went very smoothly."

Free resources for you to track your credit score

Last time I spoke with you about credit and how to rebuild your score after a short sale. I told you about various places where you can get free credit scores. After doing some research, I have found even more services that can offer you free credit scores.

You can visit www.quizzle.com or www.equifax.com to get your free credit scores.

Another great place where you can get a free credit score is www.creditsesame.com. These websites allow you to track your credit score and they can notify you when it changes.

Knowing your credit score can make for a much more efficient real estate transaction when you're trying to get financing to purchase your dream home.

As always, if you have any questions about real estate in Covina or Los Angeles, please do not hesitate to contact me. I would be glad to assist you in any way possible.

Utilize my Free Resources to Boost Your Credit Score

Understanding Credit in the Spring & Summer Buying Season

As we enter a busy season here in Los Angeles and the San Bernardino Valley, I wanted to touch on a topic that is going to be important for you if you're planning on buying a home.

What I am speaking about is your credit score. There are different types of credit scores, but the most important one is your FICO score. This is the score that lenders use to rate you and provide you with loans.

One DVD I can recommend for you is The Credit DVD: How to Build a Perfect Credit Score. Another good video to watch if you are seeking a higher credit score is The Credit DVD: How to Rebuild Your Score After a Foreclosure, Short Sale or Bankruptcy.

You can also go to www.AnnualCreditReport.com and get a free credit report. Another good resource is www.MyFico.com. This website is free of charge and simulates what your real credit score might look like. Another website, www.CreditKarma.com, will do this too, as well as notify you on a monthy basis whether your credit score has gone up or down.

If you would like a copy of either Credit DVD, please contact me and I would be very happy to mail you a copy.

Otherwise, if you're looking to buy or sell your home in LA or San Bernardino Valley, please contact me by phone or email and I would be glad to provide assistance to you.

Thanks for tuning in!

Accessing my Secret List of Homes From 6 Different Avenues

Today I will be talking about my secret list of homes in the Covina and Los Angeles areas and how you can access it. You might be skeptical at hearing this, but trust me, this list does exist. I have found these properties from 6 different areas.

Shadow Properties: These are foreclosed homes that have not been released to the market by the bank.
Flipped Properties: I have access to the 'fix and flip' homes that investors buy and then repair. The investor will give me a price, and then I can contact you to form an offer.
Expired Listing / For Sale by Owner Follow-Up: I follow up on properties like these and can help you gain access to them by calling the bank and/or the owner of the property.
Home Valuations from my website: When home owners us the home valuation tool on my website, I then know about their property that they might be trying to sell. These homes are not listed, but I am able to contact the owners.
Access to Probate Attorney: When people pass away, their estates must be settled, and I have contacts in this industry that I can communicate with to find you a property.
Access to Divorce Attorney: Much like #5, I have contacts with attorneys who can alert me to potential homes as a result of a divorce.

Most real estate agents do not have the connections that I do, so contact me if you are having trouble locating a good property in the Los Angeles or Covina areas. I can find a hidden gem for you among these 6 different avenues. If you need assistance please call me at (626) 643-7090 or email me at reoagent@shawnluong.com

Is Buying a Home for Your College Student a Good Idea?

Purchasing a Home for Your College-Bound Child...

It's spring time, and with the blooming flowers also comes lots of high school seniors preparing to go off to college. This will cause a lot of decision making, from where your child is going to college, to where your child is going to live in college. Some choose to house their children in dorms, but I have another option that might work well for you.

I am talking about purchasing a home for your college student. I will point out 4 advantages to purchasing a home for your college student to live in.

Rent-free living: This will save you lots of money over your child's college career. College is extremely expensive, and this is one way to cut the costs down.
Extra Rooms can be Rented Out: This will allow roommates to pay for rent, and this money will go directly toward your mortgage, taxes, insurance, and utilities.
Depreciation of rental property: Instead of losing value as a rented property, this property will continue to gain value if the tenants take good care of it and then you can sell it again at the end of your student's college career.
Security & Surveillance: You can keep track of whether or not your student is abusing the new found privileges of home-ownership and throwing lots of parties. This is of course just another way to protect your child and your investment property.

I have done this for my clients' children and they have had positive experiences with it. Also, as part of the National Association of Realtors, I can provide you with information about this process and refer you to other realtors if you are doing business outside of the Los Angeles, Riverside, Orange County, or San Bernardino areas.

I am also a member of the Century 21 Systems, so I have access to reputable agents that I can refer to you, and my information as a professional realtor is sure to benefit you in your search.

If you need any information about real estate in the towns that your children are heading to, feel free to contact me for advice and consultation. We can talk about whether it will make sense to purchase a home or find another way for your child to live comfortably in college.

So just give me a call at (626) 643-7090 or email me at reoagent@shawnluong.com

How to Avoid Probate Court and Settle Your Estate

Today I'm going to discuss a topic that a lot of people have been calling and asking me about. It's sometimes an intimidating and confusing topic because it involves real estate, law, and finance. However, I'm going to clear the air a bit for you.

Probate Law
Probate is a legal process that occurs after someone has died, which includes:

Proving that the decedent's will is valid.
Inventorying the decedent's property.
Appraising the property.
Paying debts and taxes.
Distributing the remaining property in accordance with the will.

This can be a lengthy and costly process, but there is a way around it...

A Living Trust
Also called a revocable living trust, this is a way of avoiding probate court, which will always be costly to your beneficiaries.

This can help you to avoid probate court because when the trustmaker dies, the trust itself will live on.

This allows for the successor trustee named in the trust agreement to legally take control of the trust and assume the position of the trustmaker, thereby gaining control of bank accounts and investments.

However, If You Are Stuck in Probate Court...
If you are unfortunately stuck in the process of probate court, you can do something to help yourself.

You can request the court or your attorney to file you as a full authority representative with the IAEA

IAEA is the Independent Administration of Estates Act: If granted, this gives you the full authority to settle the estate with minimal interference from the courts.
There are restrictions to this Act, so be sure to consult a real estate attorney if you are in this troubling situation.

I was once unfortunate enough to lose real estate property because I was not aware of the inner workings of probate court. I would be very disappointed to see this happen to one of my clients, so if you have any questions or require any assistance with this process, please contact me because I know professionals that would be willing to assist you. You can call me at (626) 643-7090 or email me at reoagent@shawnluong.com

What MBA Classes Won't Teach You - Lessons from My Personal Investment Story

A long time ago I had my first experience in investment. It wasn't the most sophisticated nor the most thrilling endeavor, but it allowed me to learn volumes about how investments work in the real world.

I happened upon an acquaintance who said that they could fetch me a 36% return on a $1,000 investment. The plan was to buy 100 boxes of shrimp (wholesale) in downtown San Pedro and Los Angeles for $10 each. The shrimp would then be distributed at a grocery store in Fresno, CA, where the shrimp sold for $18 per box.

Each week we netted $1,800, $360 of which were given back to me. This was a very simple investment that I made, but it began a path that led to where I am now. No MBA classes could have taught me what I learned in those few weeks.

I learned quickly that returns are relative, and that cash flow is king. This has been my guiding principle ever since. If you are currently looking to invest in rental properties, then please contact me and I would be glad to help you in your venture.

You can contact me at (626) 643-7090 or email me at reoagent@shawnluong.com

Thanks for watching, and I'll be back soon with more real-estate information for you.

Happy Chinese New Year: The Year of the Horse!

Today I'm changing my usual real estate theme on my video blog to something a little more important. Happy Chinese New Year!

I'd like to wish you a strong and energetic New Year.

Until next time, stay safe and happy. I look forward to visiting with you again soon.

2014 in real estate - from Orange to Riverside County

Welcome back and happy New Year. I hope 2014 is a year of prosperity, health and happiness for you. You may be wondering what is in store for the real estate market.

Price appreciation is still high. Bruce Norris, a noted real estate guru, believes Riverside County will do much better than Los Angeles.

FHA has decreased their loan limits. In Orange County and Los Angeles the limit dropped almost $100,000 and is now $625,000. In San Bernardino and Riverside Counties the limit is $355,000. However, there are some great new 5-year Adjustable Rate Mortgages available.

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About

With more than twenty years of real estate and mortgage experience, Shawn has helped numerous clients realize their dreams and secure their futures with a strategy that allows clients to build wealth from their properties. With past clients, Shawn has devised a plan so that his clients can retire without relying on Social Security or company pension.

Shawn has created a life-cycle relationship with clients by providing a clear road-map in savings, managing assets, refinancing mortgages, acquiring investment properties with cash flow, increasing the value of income stream and much more. He also helps clients settle estates without the help of attorneys and can help you to avoid probate court, which can be very costly.

Once you're a homeowner, Shawn will show you the road-map to financial independence through his life-cycle relationship to ensure a lifetime of satisfaction.

Shawn Luong
DRE# 00857818
Century 21 Masters
Covina, CA
Phone: 626-643-7090
reoagent@shawnluong.com

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Shawn Luong Testimonials

Click to hear recent
testimonials from happy clients

Ken - "When Shawn helped me buy a property, he went around and looked for a good price for me. He really helped me from the beginning until the end and everything went very smoothly."

Dr. Jack - "It was an excellent experience. He’s very good and we had 4 offers within a couple days. I would recommend him to any of my friends."

Cesar - "He told us what we would be doing, about how long it would take, and what he was going to do. Everything came out right and we ended up getting more than we expected, it was fantastic! When I had to replace the furnace, he even gave me names and numbers of people who had furnaces and a contractor that did the work for me very cheaply which helped out a lot."

Linda - "We had a great experience. When I asked questions he’d answer and give me good advice. If I called him with a question, he’d get an answer for me right away and every week he let me know what was going on with the transaction, which I really appreciated!"

Tim - "We have very good results! He did everything that he promised. Even after the deal was closed, I am still comfortable in calling him to ask for advice. I’m a rookie when it comes to property management so I’m very appreciated of his help!"

What our happy SoCal clients have to say

"Shawn knew what I wanted at every step of acquiring this property. When there were issues or questions, I needed only mention them once and they were taken care of. Other than looking at the potential properties, everything was handled without me stepping out of my home. We closed several days ahead of schedule and we didn't even rush the process. I highly recommend Shawn as your next agent."

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"Shawn Luong is speedy, smooth and acts with integrity. His stellar client care and knowledge of the Pasadena/Altadena area allowed him to sell our family home within days of listing it. In addition to his impressive real estate expertise, Shawn also offers the latest in technology for easy signing and execution of documents. Because of Shawn's warm personality, even a baby boomer like me felt at ease with the process. If I ever had questions, Shawn was only a phone call or email away.

It is with pleasure and confidence that I full heartedly recommend Shawn Luong! He is a truly extraordinary Realtor! I should add that he did such an excellent job, my family decided to list a second property with him. He performed masterfully on that transaction as well. If you are looking for an experienced real estate agent in Southern California, Shawn Luong is a great choice!"

Click here to read even more reviews