As the days become shorter and sun tans fade away, we look forward to another season in San Diego.

Historically, real estate listings in San Diego rise during the autumn months.  Partly due to the slow-down in people who move here during the summer months.

Now is a great time to find the home of your dreams!

Check it out without delay!

Get crackin!

A FHA loan locked at 3.75% fixed for thirty years currently yields a REBATE of 2.928 points!  on a loan amount of $400,000 that’s a REBATE of OVER $11,000!

For more information Call Constantine at 858-848-LOAN (5626)

San Diego Real Estate has NEVER been this affordable!!!

If you are looking for the best mortgage with low rates in San Diego, call Constantine at 858-848-LOAN (5626)  He is recommended by the best in San Diego for home loans.

I don’t care if your uncle Larry is selling you his investment condo or the property was made in 2012.  Get a home inspection.  Sure it will cost money.  But it’s totally worth it.

Here’s why:

Leverage

Once the home inspection is complete, I recommend a follow up with a high-end contractor to place estimates on repairs.  While a lot of the findings buy the inspector may not  need immediate attention, list them anyway.   I then present the list of recommended repairs with attached respective estimates to the seller and either request the seller repair the items noted or reduce the purchase price in order to accommodate the repair budget for thew buyer.  It usually ends up saving the buyer thousands of dollars in repairs!

Preemptive Knowledge

“If it ain’t broke don’t fix it” doesn’t work with rusty cast-iron sewage pipes in your crawl-space ready to burst.  When these things are found by the inspector, it gives you a heads up in order to either a) request seller repairs, or b) budget the upgrade yourself.

Peace of Mind

Let’s say you just spend $250 on a home inspection and it comes back with an A+.  (I’ve never seen a property inspection report less than 60 pages long btw)  Guess what?  You just earned yourself the best nights sleep you’ve had in a long time.  You can rest easier now knowing that your new investment won’t collapse and be eaten by termites while you sleep.

Imagine that you have a million dollars to spend… and want to start a Small Business Investment firm.  Your basic business model is based on the belief  that if you invest in small local businesses with good business plans, you will likely receive a great return on your investments.  Let’s say you lend a local entrepreneur $80,000 to open a dog grooming service in La Jolla at a rate of 9%.  Another business owner wants to open a Mexican Asian Kosher Fusion Bistro / Night Club in the Gaslamp- Here’s $120,000 to help you get started – But since the Gaslamp area has displayed a high rate of business failures compared to La Jolla in the recent years, combined with the untimely saturation of Kosher Asian Mexican bistros in the Gaslamp, you decide to lend at a higher interest rate, say 22%.  And so on and so on until your $1million seedling has been tapped.

Fast forward three years.  While you started with $1million to invest, you have scaled up your operation and now have $2million invested in small businesses all over San Diego returning an average of 14%!  Great Job!  Only one problem.  You are tapped out of capital.  You know that if only you could access another $4million, you would be able to corner the local market and REALLY start seeing some cashflow.  What to do?  You could wait until you generate the capital through your investment interest returns, but that would take years.  You need to borrow money from another investor who specializes in investing in investors!  Confused?

So the investor looks at your track record and agrees to lend you $1million a month at 7%.  While you will in essence shrink your profit by 50% on future investments (average 14% from your borrowers minus 7% to your investor = 7% return), the alternative would be to stop investing and have a stagnant company.  So you take the deal and begin scaling up your business model to include the new investment money.  And you corner the private small business loan market in San Diego.

Fast forward one year.  A few of your investments tank, you lose some capital and you need to borrow more money faster in order to lend to more qualified entrepreneurs to recoup your losses.  You ask you investor to increase your “allowance” to $3million a month.  He agrees, but instead of lending to you at 7%, he decides that from now on, he will lend to you at 15% since your track record is not as pristine as it once was.  You, like the Asian Mexican Kosher Bistro Nightclub owner, are a risky bet.  You accept the offer but have to deal with another problem.  How to get your profits back to where they were to balance the books?  The answer?  Raise YOUR rates.  Since you’ve cornered the market, you can! You’re the only game in town! Until you can convince your investor that you are a safe bet you have to increase your interest rates so that you can still turn a profit.

Now imagine this on a National Scale.  “You” are the United States.  Your “customers” are banks.  Your “investor” is treasury bond holders and the Mexican Asian Kosher Fusion Bistro is just an all-around bad idea.

30 fixed mortgages are available at less that 4%.  It feels surreal.

This deflating of the cost of money is most likely due to the shuffling of investor capital from the stock market to treasury bonds.  Although this trend will likely be short lived, if you have the opportunity to lock in a rate on a purchase or refinance, NOW IT THE TIME!!

The DOW closed today with a 500 pt loss.  That’s gotta hurt someone.  But as they say in Ohio, “I love when stock market investors get scared because now I can refinance my home”.

If you ever have any questions about San Diego Real Estate or Financing, please give us a call! 619-663-SOLD

Pacific Beach vs Mission Beach vs Point Loma vs Coronado: Housing Prices

Where would YOU rather spend your money to live by the beach?

Which beach community is the most “Bang for the Buck” with San Diego Real Estate prices?

Look at the charts below to find out!

We have the answers.

A shortsale is a property that is offered for less than the outstanding loan amount owed.  What that means is that the bank who initially gave the loan to purchase the property will eventually have to settle for less.  The final sales price on a shortsale is negotiated between the listing agent and the bank.  Some shortsales are listed for sale with bank approval while others are listed with no lender knowledge.  The difference is huge.  Bank shortsale approvals can take moths.  If you have your eye on a shortsale without lender approval you may be waiting for months before receiving an acceptance or denial on your offer.  Needless to say, if two or even three banks have money lent on a property would only cause further delays and increase the likelihood of  an ultimate denial.

Bottom line:
If you want to buy a shortsale, do yourself a favor and stick to those with lender approvals!