Dec. 4, 2017

The Golden Rules of Investing in Flip Properties

                   
 I am excited to start my new video series on flipping houses. Today, I’ll go over the first golden rule of house flipping: You make your profit the minute you buy the home.

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I’m excited to start a new series on how to buy and invest in your first flip property.

 

There are a few golden rules that I follow when investing in a flip property. My dad and I have been fortunate enough to invest in a lot of flip properties.

 

The first golden rule you need to know is that you make your profit when you purchase the property. All of your gains from this property are made the second you buy it.

 

Now, you can mess things up by over-repairing the property or doing the wrong repairs. However, as long as you buy a property with good margins, that is where the profits are.

 

When selecting a property, you should look for about 80% of the after-repair value. After-repair value is what the property will be worth once you have completed all of the work on it. Buy the home at 80% and give yourself a 5% margin for repairs.

 

So when you buy a property, the total development cost cannot add up to more than 85% of the sale price. The development cost includes the purchase price and repairs.

 

"The total development cost cannot add up to more than 85% of the sale price."

 

Let’s say that the property has an after-repair value of $600,000. That means you cannot buy more than $510,000 before repairs.

 

If the property needs $35,000 in repairs, then you cannot pay more than $475,000 for a property that will be worth $600,000 when it’s finished.

 

If the property is under 85% in total development costs, your profit will be 15%, which is a good deal.

 

In my next video, I’ll go over how you can find these deals and how to fund them. In the meantime, if you have any other questions about investing in flip properties, just give me a call or send me an email. I would be happy to help you!

Posted in Buying a Home
Nov. 21, 2017

6 Tips on Getting Your Offer Accepted

                   
 Today I have six tips on what you can do to make your offer more attractive
and more likely to be accepted by sellers.

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Today I’ll be teaching you how to get your offer accepted in a competitive market.

 

1. Make sure to touch on a seller’s emotions with any offer you send out. Put together a cover letter explaining why you like the property to send to the seller on your behalf.

 

2. Putting down a large deposit will show the seller that you’re serious. Sellers favor buyers who put their money where their mouth is. I’d recommend a 3% deposit.

 

3. Figuring out your financing is very important. When it comes to financing, the ways that you can show the seller that you have good financing in place is by the down payment that you put in on the property, by sending over your credit score, and by sending an underwriting approval. Sending an underwriting approval is basically to show proof that the lender has looked at every single document in your entire file and have approved you for that property.

 

4. Try to keep your inspection periods short. Typically, those periods are kept to 14 to 17 days. Get the inspectors out there right away and remove the inspection contingency within seven days. This will put you in a very competitive spot for getting your offer accepted.

 

5. Get the appraisal done quickly as well. The appraisal is another contingency that’s usually in place on a purchase agreement. We like to shorten up the time frame from 17 days to 10 days.


6. Assess how long it will take to close the transaction. If your lender allows it, we recommend moving this period down to 21 days. This will make you one of the more aggressive offers on the table.

 

"Sellers favor buyers who put their money where their mouth is."

 

If you’d like more information on how to get your offers accepted, please feel free to reach out to us. We’re always happy to help.

Posted in Buying a Home
Nov. 1, 2017

The Garcia Team Is Hiring Exceptional Agents

We at the Garcia Real Estate Team simply can’t handle all of our incoming leads: We need your help! Apply now.

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I want to reach out to my friends, family, clients, and soon-to-be clients to let you all know that our business is doing phenomenally well.

 

We’re moving at a really rapid pace, and I need some help with some of the incoming lead flow.

 

A lot of buyers are reaching out to us, looking to purchase property, and we’re getting a little overwhelmed. I’m looking for an agent who would like to join our team and start helping us assist with our surplus of buyers.

 

We are looking for top-notch agents who take pride in exceptional customer service, and have the drive to help clients achieve their goals. As an agent on our team, you’ll guide our buyer clients through every step of the purchase process. You’ll provide initial consultations to identify our clients’ criteria for a new home or condo. For our clients who are first-time home buyers, you’ll help them better understand the key milestones in the purchase process.

 

"We are looking for top-notch agents who take pride in exceptional customer service."

 

Your responsibilities would include (but are not limited to):

 

  • Consulting with clients in order to discover their property desires, then finding properties that meet those needs

  • Follow-ups, e-mail communication, and overall management of sales pipeline

  • Having confidence in making outbound calls each day to qualified leads

  • Attending training calls, trainings and webinars to enhance skills and constantly improve

  • Nurturing long-term prospects and building relationships with buyers and sellers

  • Updating all information and conversations for each client/prospect in company CRM in order to create the highest level of service and best experience for every person you contact

  • Representing the team in a positive manner in all occasions and helping build brand awareness throughout the community

  • Participating in ongoing training and development

 

Our team is not for everyone. We hold ourselves to a higher standard than most. You will be expected to push yourself, to make your mark, and to strengthen the values, behaviors and culture that are the core of our success. Before you apply, be sure our team is right for you.

 

If you think that’s something you’d be interested in, please contact us. I will provide a link on this email to where you can apply. Hopefully we can work together.

Posted in Real Estate News
Oct. 16, 2017

Don’t Ignore Any of These 9 Home Repairs

Some home repairs shouldn’t be avoided. Unless you want to take out a second mortgage, that is.

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Today I’ve got nine different home repairs to share with you that you should never put off.

 

1. Caulking. It doesn’t cost much, but it can help keep water out of places it shouldn’t be.

 

2. Cleaning your dryer vent. You probably clean the trap out regularly, but when was the last time you cleaned the vent itself? I recommend changing it out and cleaning it every six months to a year to prevent a fire hazard.

 

3. Roof repairs. A leak can cause serious structural issues. If you find a leak, take care of it now rather than later.

 

4. Chimney sweep. Do this at least once a year to prevent creosote buildup. This is the residue that forms from wood-burning, so you'll want to clean it out.

 

5. Change your HVAC filters. Dirty filters cause the system to work harder than it needs to and ultimately increase your utility bill.

 

6. Pest problems. Whether it’s termites, rodents, or other pests, you want to handle any pest problems very early on. It can get very expensive if you don’t.

 

7. Fix any plumbing leaks as soon as you find them. This is one of the more costly repairs that we see. A simple leaky pipe can cause major damage if not handled properly.

 

8. Peeling paint. If you see any chipped, cracked, or peeling paint, throw a fresh coat on top. Water can seep into the house through exposed areas and it's bad for the house.

 

9. Drainage problems. Clogged gutters or an improper grade can actually put your home’s foundation at risk. You want to make sure you take care of this right away.

 

"These are just a few repairs to be aware of."

 

These are just a few things that you should stay on top of as a homeowner, whether you’re thinking of selling soon or not. If you are and you need any assistance from us, we’d be happy to help. Just give us a call or send us an email today.

Posted in Selling Your Home
Sept. 5, 2017

Don’t Make These Mistakes When Buying a Home

Today I’ll go over four common homebuyer mistakes and how to avoid them.

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There are a few big mistakes buyers often make when buying a home that you can easily avoid.

1. Overlooking the commute time. Most buyers take Google Maps’ word for it when it comes to judging the commute time. I’ve seen people buy a home only to discover that their drive to work is 45 minutes longer than they thought it was. That can lead to an additional hour and a half of driving each day. I recommend actually driving that commute before you buy the home.

2. Pay attention to the bedroom-to-bathroom ratio. Sometimes people buy a house and are excited to start a family, but they wind up buying a 3-bed, 1-bath house, and now the family has to share one bathroom. Keep growth in mind when purchasing your home.

"You can add square footage to your home, but you can’t add more land to your lot."

 

3. Pay attention to the size of the lot. You can add square footage to your home, but you can’t get more lot. People often buy property on smaller lots and still want to make additions to the house, which can be difficult.

4. Make note of all the conditions and restrictions of the HOA. If you buy a property that has a homeowners association, there will be restrictions on making additions to the property, changing the color of the property, and other things like that. Make sure that you’re not overlooking any special conditions that could keep you from customizing your dream home.

If you have any other questions about buying a home, just give me a call or send me an email. I would be happy to help you!

Posted in Buying a Home
July 31, 2017

How to Put Less Money Down for a Home

If the idea of a 20% down payment seems difficult, there are other loan options out there.

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A recent survey has shown that coming up with the money for a down payment is what most people consider to be the most difficult part of buying a home.

 

A common misconception is that you always need 20% for a down payment. This simply isn’t the case. Various loans exist for different circumstances, including being a first-time buyer.

 

In fact, the FHA loan is one the most common loan options for help with down payments. The FHA is a 3.5% down payment loan. In a market like ours where the average price of a property is $550,000, the conventional 20% down payment would total $110,000. That’s not exactly affordable for most people.

 

The FHA allowing you to come to the table with significantly less is a great help to many buyers out there, but keep in mind that you will need to pay for private mortgage insurance. This is just a few hundred dollars more, though.

 

"Coming up with the money for a down payment is what most people consider to be the most difficult part of buying a home."

 

Also, there are different options out there which don’t require this type of insurance.

 

For veterans, there’s an option called the VA loan. VA loans require 0% down. This is my personal favorite when it comes to loan options. If you’re a veteran, you’d be missing out to not take advantage of this loan type.

 

You can even use it to buy multiple-unit properties like duplexes. Overall, this is a fantastic loan that I highly recommend.

 

Another 0% down loan option is the USDA loan. While you don’t need to be a veteran for this option, you do need to purchase a rural area property.

 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Posted in Buying a Home
July 13, 2017

3 Tips for Buying Your First Home

Here are three tips that can help protect you when you go to buy your first home.

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When buying your first home, there are a few things you should remember that will protect you throughout the process:

 

1. Know how much house you afford. You're not just looking at the price of the property, but all the other costs involved, such as HOA dues, taxes, insurance, and utilities.

 

2. Choose your lender wisely. You want to make sure that you’re working with a lender who is going to give you all the information you need prior to moving forward with the purchase of a property. They should also be laying out all the different types of loans and assistance programs that are available to you before you open up escrow on a home.

 

3. Don’t overlook the details. Don’t forget to look real deep into all the fine print of the legal documents. You should look out for three key pieces in your documents—your inspection contingency, your appraisal contingency, and your loan contingency. All of these things are going to protect you when purchasing your property, so make sure you read the fine print.

"Read the fine print so that you’re protected."

 

If you have any other questions about this topic or you’re looking to buy or sell a home, please give me a call. I’d be happy to help!

Posted in Buying a Home
June 12, 2017

5 Home Improvements That Will Maximize Your Home's Value

When making improvements to your home, try these five to add the most value possible.

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If you want to make some improvements, these five will help you maximize the value of your home.

 

  1. Curb appeal: Focus on the landscaping and the front door, which are the two most important factors of curb appeal. The landscaping should be lush and green and the front door should get a fresh coat of paint. If you're in an upscale neighborhood, you could also get a new iron door.

  2. The kitchen: Focus on the kitchen because that's where all the emotion is in a property. Make sure the kitchen is clean, well-lit, and styled uniformly with the rest of the house.

  3. Bathrooms: Make sure they're clean because if a home's bathrooms aren't clean, the house just doesn't feel good.

  4. Paint: This makes such a big difference because a house with beat up paint just looks and feels older. A fresh coat will go a long way.

  5. Flooring: Older carpet doesn't do as well on the market as tile, wood, and laminate floors. The important part is that the flooring fits the home and its style well.

 

 "The important part of flooring is that it matches the home's style."

 

All five of these methods will help you maximize the sale of your home when the time comes. If you have any other questions or you'd like to know more about which upgrades will maximize the value of your specific home, give me a call or send me an email. I'd love to help!

Posted in Selling Your Home
April 4, 2017

California Rental Properties Can Be Your Key to Wealth


Today, I'll go over three reasons why rental properties can be your key to wealth.

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California Rental Properties Can Be Your Key to Wealth / What Is the Key to Wealth in California Real Estate? / The Key to Wealth in California Real Estate
 
Rental properties can be your key to wealth in California real estate. Here's why.
 
  1. Cash flow: Cash flow is the top reason most investors get into real estate. People love to have that extra income coming in every month. Every property is a little different, but if you buy a good property and the rental makes sense for what you're purchasing, you'll make money right away.
  2. Tax breaks: You can mark of the depreciation with the income.
  3. Long-term investment: Rental properties build wealth over time. Your principle is paid off by your tenants, and at the end of your term, you'll have a paid off property and have paid off the mortgage. You'll then make $2,500 to $3,000 a month free and clear in rental income.

"Cash flow is the main reason people invest in real estate." 

 

If you have any questions about rental properties or about real estate in general, give me a call or send me an email. I would be happy to help you!
Posted in Buying a Home
April 4, 2017

Prepare Your California Home for Sale


The spring market is here, and now is a great time to sell your home.


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Today, we’re going to go over a few simple ways to prepare your home for sale. 
 
Start by improving your curb appeal. Curb appeal is the first thing people see when they come to the property. Put the trash cans away and make sure everything looks presentable. For instance, the lawn should be bright green. Consider adding some plants in the front yard as well.
 
Once inside the property, people will notice how clean it is. Reduce clutter in your home so people can appreciate the property rather than all your stuff. 
 
You should also keep the property nice and bright so it doesn’t feel like they are walking into a dungeon. Open up the windows and let a nice breeze in. That breeze will also help get rid of bad odors in the property. If you’re worried about smells in your home, have a friend or your real estate agent walk through to give you an honest opinion. 

" Keep the property nice and bright." 

 

Pay attention to light fixtures. Old, corroded fixtures can make a property seem beat up. Adding new fixtures can update the look and feel of your home. 
 
Next up is the color palette. If you have green, yellow, and orange throughout the property, it’s not going to show very well. People want neutral colors. 
 
Finally, consider staging the property. Have a consultant come by and make your home look its best. 
 
If you have any questions, give me a call or send me an email. I would be happy to help you!
Posted in Selling Your Home