Boomerang Buyers in Southern California

Today, our preferred lender, Dave, is here to discuss the latest buzz in the market: boomerang buyers. Boomerang buyers previously went through a short sale, bankruptcy, or foreclosures, and are now eligible to come back into the market.

Loan programs improved in the last couple of years. Plus, the market became stronger and healed. A lot of those buyers don't know they can come back into the market because of programs offered by the lending community.

Many clients think that the seizing on a short sale is forever. However, you can get back in the market in as little as three years through FHA or two years with Fannie Mae. There is also an FHA back to work program that allows people with major credit challenges to get into the market in one year.

Additionally, there are several great grant programs available to boomerang buyers. This is free money that you can use for a down payment or closing costs! A lot of people may be able to qualify, so talk to a professional to see which program works best for you.

You don't have to be a first-time home buyer to qualify for these down payment assistant programs. With grant programs, you don't even have to pay the money back.

Keep in mind income guidelines are extremely aggressive with grants. For instance, in Orange County, it's about $98,000. In LA County, it's $80,000.

Ultimately, these opportunities are great for people looking to enter the market. If you have any questions for Dave or myself, give us a call or send us an email. We look forward to hearing from you!

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Why Should You Invest in California Real Estate?

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Homes have been appreciating in California at a steady rate since 1980. Actually, from 1980 until now, there has been a 5.9% average yearly increase. It's been fantastic riding this wave of appreciation, and now is still a great time to invest.

Investing in real estate is all about earning passive income, and we can help you do this! I can help you find properties that will net you a 6-7% cash flow every year plus your yearly appreciation of 5.9% amplified 5 times with the 1 to 5 leverage, 20% down payment controlling 100% value, which over a year period amounts to a 36% return. That's your best possible investment!

Real estate is a better investment option than the stock market, bonds, gold, silver, and many other things. There is no better long-term investment than real estate!

Next time I'll continue speaking about investments and I'll be comparing investment properties in Ohio and other states, and I'll compare them to investment opportunities in California.

Stay tuned for more investment advice!

Southern California Market Update

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As we move into the fourth quarter, many have asked us how the market is. Today, I’ll share some statistics with you. Luckily, the numbers are good! Specifically, I’ll be looking at data taken from January to September of this year. The area I’ll focus on will be from Alhambra to Rancho Cucamonga east to west and Pasadena to Anaheim north to south. This covers regions within the San Bernardino and Orange counties.

In this area, we’ve sold 12,946 homes. This is about 827 homes more than last year! That’s a 6.8 percent increase of sales.

The median price now is currently at $580,500. Interestingly enough, this average has also increased 6.8 percent compared to last year. Last year, it was $543,200 during the same time.

The market is healthy. Remember if you put twenty percent down on a house, that 6.8 percent translates back to 34 percent return on your money. If you have an investment in real estate, you now have a 34 percent increase.

Next time, we’ll talk more about investment. Why is Southern California a great place to invest? Find out next time!