April 12th, 2014

Mortgage Options for the Self-Employed

One of the many ironies of working in real estate is that real estate agents themselves often have a harder time being approved for a mortgage than the clients they represent! Self-employed individuals (such as real-estate agents) are generally not seen as the ideal borrower, and typically pay higher interest rates than someone who collects a regular paycheck from their employer. If an advertised mortgage rate seems too good to be true, it usually is. The best rates are applicable only for prime borrowers, i.e. individuals with excellent credit scores and steady verifiable income source – something many of the self-employed lack. But of course they never mention that in the ads.

As a self-employed individual you will often have to go the extra mile to find lenders willing to work with you. Reporting requirements are more stringent and lenders will look at your financial background with more scrutiny than they would a regular 9-to-5 employee with a steady income.

Mortgages Options for Self-Employed Individuals

Traditional FHA Loans – Most lenders these days will only offer traditional FHA loans to the self-employed on the basis of their tax returns for the last two years. Borrowers will have to fill out IRS Form 4506-T, authorizing lenders to request tax transcripts. Tax returns can only be received directly from the IRS and not the borrower and lenders will have to wait until the IRS has processed and recorded them.

A lender will look at the average of the borrower’s adjusted gross income for the last two years, unless the most recent year shows falling income, in which case the lower number will be used. The actual requirements (such as the debt-to-income ratio) to qualify for an FHA loan varies greatly depending on each borrower’s unique financial situation – this is something you really should discuss with a qualified mortgage broker or financial adviser.

Stated Income Loans – Before the housing market crash of the mid to late 2000’s, most banks would approve what was known as ‘stated income’ loans from most self-employed individuals. A stated income loan, as the name suggests, was where the mortgage lender would approve the loan on the basis of the borrower’s stated income, without verifying it against pay stubs, tax returns or other documents. Needless to say such loans were abused (by both borrowers and lenders) to such an extent during the housing boom, they came to be known as liar’s loans.

While stated income loans have been all but outlawed by federal legislation, some smaller lenders at the State level are offering their versions of stated income loans, albeit with more stringent requirements. For example, a lender might provide a stated income loan to a borrower who has a credit score of 720 or higher, can put a down payment of at least 30 percent or more and has at least six months of cash reserves at hand to cover all their monthly obligations beyond just the mortgage. Also it should be noted that the mortgage rates of stated income loans on the secondary market are not as competitive as those offered by traditional FHA loans.

No Documentation Loans / Alt-A Loans – Similar to stated income loans, these are loans given out in the secondary market where the lender will not seek to verify borrower income information. Since these are riskier loans than full documentation loans, the interest rates will be considerably higher. As with stated income loans, Alt-A loans have come under increased scrutiny in the wake of the housing market crash of the mid to late 2000’s.

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Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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April 3rd, 2014

Real Estate Ethics – Working Hard to Do the Right Thing

A short sale lead

Yesterday I received a call about a possible short sale, even better it was a referral from a past client. It always feels good when you receive a referral. In this case the referral was about a home that was $90,000 underwater and the owners wanted out. They wanted to short sale, and what was even better is that they informed me they already had a buyer lined up. Easy money, right?

All I would have to do is submit a request for a short sale, turn a blind eye to any outside offers that come in and introduce our pre-arranged “buyer” as the only person willing to make a serious offer on his home. Everyone is happy, I get to close a quick and easy transaction – one whose result has already been pre-determined – collect my commission and call it a day. What could be easier! Except if I were to go through with such a deal I would be committing fraud and jeopardizing my real estate license.

I politely informed the lead that short selling his home to a straw buyer is something I would not do. As difficult as banks are to deal with (and believe me, you don’t know the meaning of the word difficult until you have dealt with the servicing departments these banks use to process short sales), I as a Realtor have a responsibility to my client. In the case of a short sale, the bank is a party in the transaction because of the seller’s negative equity position in the home. I have to do my best to recover as much money as possible from the short sale. If I limit the home’s exposure on the MLS or turn a blind eye to legitimate offers on the property, I become guilty of defrauding the bank.

When I carefully explained all of this to the lead, the response was, “Oh………………. so can you short sale my home????” I clearly wasn’t getting through to them. So once again I replied, saying that while they will undoubtedly find a real estate agent willing to go along with their scheme, that agent would not be me. I ended our conversation by informing them if they wanted to enter into a short-sale listing agreement with me, they would have to prove to the bank that they’re in a genuine financial hardship, let me expose their listing to the whole world via the MLS and other avenues and grant me the freedom to entertain all offers.

They ended up taking their business elsewhere.

The above example shows the ethical and moral dilemmas we working Realtors face every day. There are many Realtors who are all too happy to accept such deals and pocket the money. What’s the harm, right?

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Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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March 24th, 2014

Carlsbad Home for Sale

Team Aguilar has just listed a gorgeous Carlsbad Home for Sale in the 92008 zip code. This custom Cape Cod style home has 3 Bedrooms and 2.5 baths. Custom upgrades include Slate floors, French doors, Milgard windows and Central A/C. This home is move-in ready. The added addition above the home is absolutely stunning and can be used as a bedroom, office, or perhaps even rented as the new owner see fit. Featuring a large back and front yard, this home is centrally located within walking distance to all three area schools — the elementary, middle, and high school – this home is ideal for anyone wanting to raise a family in one of the best school districts in California.  Close to everything one could desire in Southern California, this home sits one mile from the Beach and is very close to Downtown Carlsbad in addition to numerous parks, basketball courts, tennis courts and soccer fields. Very reasonably priced at $769,000, this home won’t be on the market long.

Contact Howard Blum or Fred Blum at 619-366-2000 for showings.

MLS # 140015363

Carlsbad Real Estate

Carlsbad Real Estate

 

Carlsbad Real Estate

Home for Sale in Carlsbad

 

Search Carlsbad Real Estate for sale HERE

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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March 15th, 2014

Free March Madness Basketball Pool

Free March Madness Bracket ChallengeTeam Aguilar’s Free March Madness Basketball Pool is back! This is our 5th year and it sure seems to fly by!

Feel free to sign up here or just click on the March Madness image in the header of our homepage.

You won’t have a chance to win a million or a billion dollars but you may win a few bucks.

Top 3 players win $

1st = $100

2nd = $75

3rd = $50

Simple Scoring System
1 point for each correct pick in Round 1
2 points for each correct pick in Round 2
3 points for each correct pick in Round 3
4 points for each correct pick in Round 4
5 points for each correct pick in Round 5
6 points for the correct Champion

The March Madness Pool is 100% free and everyone is welcome. It will take you just a couple minutes to sign up, make your picks and lock your bracket. Note that the schedule will be updated Sunday evening after selection Sunday has completed.

Feel free invite your friends and message me with any questions.

 

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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March 7th, 2014

New Listing in San Elijo Hills

Howard Blum has a new listing in San Elijo Hills that just came on the market. Stunning home in San Elijo Hills just listed. Located at 1670 Milan, 92078, this luxurious home in an exclusive and family friendly gated community is perfect for entertaining and raising a family. Immaculately cared for by single occupant, this corner lot in the Azure neighborhood of San Elijo Hills could be just what your client is looking for. Complete with a large granite counter topped kitchen, Kitchenaid appliances including double oven, 4 bed/3 bath including full ground floor bathroom, spectacular Master Bedroom, 3 car garage (with the single garage converted to office, easily restored to original use) and ample storage space. Additionally, our listings corner lot with an added balcony complete with Ocean View will allow your clients to take in all that San Diego has to offer.

MLS#: 140001273
Listed between $815,000 – $835,000
Contact Howard Blum:
858-354-4551
HowardBlum1@gmail.com
San Elijo Real Estate
San Elijo Real Estate

 

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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February 23rd, 2014

TeamAguilar.com Website Redesign

As our regular readers might have noticed, the Team Aguilar website has undergone a total redesign. The old site, while perfectly functional, was getting a little long in the tooth. What was cutting edge design in 2008 was starting to show its age in 2014.

Our overall goal with the redesign was to streamline the site while retaining much of the old content. A typical real estate website belonging to a small to medium sized brokerage limits itself to a few sections containing a weekly blog, a contact page and MLS listings. What sets TeamAguilar.com apart is that it is crammed with information covering all aspects of residential and commercial real estate in San Diego you won’t find anywhere else (and yes, we have a weekly blog and MLS listings as well.)

The menu bar linking all the information pages is persistent throughout the site, meaning users are only a mouse-click away from a treasure-trove of information on San Diego real estate. Our ambition was to allow the user reach his or her desired page with the fewest number of clicks – we hope we have succeeded in that aspect!

The other major goal was to make searching for properties easier. To achieve this, we placed the MLS search bar front and center in the home page. Users can now search for San Diego homes based on a number of criteria including neighborhood, number of bedrooms, price and type of property.

You may have noticed the new “search by map” feature, where users can zoom in via Google Maps and see what properties are available on the map itself along with their listing price. Links to this are available in the home page as well as the property search page.

We have also included a persistent “search by MLS#” box and “Search for San Diego Properties” link in right sidebar of every page.

Note: MLS stands for Multiple Listing Service, a centralized online resource where real estate brokers (such as Team Aguilar) access and share information with buyers, sellers and fellow brokers. MLS contains a comprehensive up-to-date list of all the available real estate inventory throughout California. If there’s a property on the market in San Diego County, it will show up in the MLS search.

Have questions, comments, or suggestions on how to make the site even better? Contact us!

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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February 17th, 2014

The Disadvantages of FSBO

Here’s an interesting little infographic from the National Association of Realtors showing the benefits of using a Realtor to sell your home. Many homeowners are under the impression they can save a bundle on commission fees by selling their properties themselves, but are in fact most likely to lose money on the final sale price.

There are many disadvantages of going the For Sale by Owner, or FSBO, route:

 - FSBO sellers cannot list their homes on the popular Multiple Listing Service used in the real estate industry. This puts them at a huge disadvantage when it comes to marketing their property, forcing them to rely on traditional means of advertising such as real estate flyers and newspaper ads. While there are some fledgling online FSBO listing services, most of them charge fees and lack the reach of MLS.

- Selling a home involves a lot of preparation. FSBO sellers are expected to be in total compliance with all State and Federal laws associated with selling a property. They should be aware of financing options, tax-implications and many other aspects of selling a home. Not adhering to the many rules and regulations will open up the seller to all kinds of legal ramifications down the road.

 - FSBO sellers will still need to hire a lawyer or solicitor to draw up the sales contract and represent them at closing.

- As shown in the infographic, FSBO’s on average sell for a whopping 20% less than a comparable property sold by a Realtor.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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February 5th, 2014

Vanessa Charfen – House Hunters San Diego

Vanessa Charfen was on House Hunters last month and here is the clip from her episode.

Get to know Vanessa Charfen! If you’re looking to buy or sell a home in San Diego County please give her a call.

Vanessa Charfen
Realtor
Team Aguilar Real Estate

(619) 750-3952
Vanessa@HomesByVanessa.com

 

————-
REAL ESTATE AGENT IN SAN DIEGO??? Looking to make a change? We would love to talk to you. Join a great real estate team. We don’t have egos and get in your way, we market you and do our best to make our agents shine! San Diego Real Estate Career

Please CONTACT US

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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November 14th, 2013

Evander Holyfield’s 109 Room Mansion Up For Auction

Evander Holyfield and another boxer.

The sale of Holyfield’s 12 bed/24 bath/45,000 square-foot mansion in Fayetteville, Georgia is making headlines right now, highlighting the waning fortunes of the former 4-time World Heavyweight Champion. Every news article on this story focuses on the scale and opulence of the 105 acre property. The mansion, built in 1994 when Holyfield was at the height of his fame, boasts America’s largest private pool, a two lane bowling alley, a 135 seat theater, a baseball field, tennis court, handball court, stables, indoor swimming pool, a boxing gym, three kitchens, dining room that seats 100, and… well, you get the picture. Holyfield once told a reporter that the 109 room behemoth costs around $1 million a year just to maintain. The current owners, JPMorgan Chase & Company, took over the property in 2012 after Holyfield went into foreclosure. They have put up the $7.5 million home up for auction yesterday (November 14, 2013) – bidding is set to start at $2.5 million. Evander Holyfield’s mansion is listed on Trulia as “Villa Vittoriosa”. Listing price is $7.89 million.

Regular readers of the Team Aguilar blog may remember a story I did last June where I looked at why so many pro-athletes who have earned millions throughout their careers often end up broke. Among the many riches-to-rags stories in that article, I cite the case of boxer Evander Holyfield. A titan in the ring, Holyfield made a name for himself in the boxing world, winning everything from Olympic Bronze in 1984, to the WBA, IBF and WBC championship belts on multiple occasions in both the cruiser-weight and heavyweight divisions. To this day he remains the only 4 time World Heavyweight Champion in the history of the sport. I even had the Evander Holyfield Sega Genesis game as a kid!

Evander Holyfield’s lifetime earnings, as of 2009, were estimated to be $250 million. Keep in mind Holyfield kept fighting until 2012, at which point he finally announced his retirement. Despite a quarter of a billion Dollar career earnings, Holyfield, like so many of his peers, is broke. In Holyfield’s case the problem was apparently his extended family – he has 12 children with 6 different women. According to Wikipedia, Holyfield pays an average of $3,000 a month per child in child-support. He also is reported to owe huge amounts of unpaid back taxes.

While Holyfield refutes all claims he is broke, he has been forced to auction off his jewelry, furniture and boxing memorabilia to pay off debt.

Mansion staircase. America's largest private pool.
Mansion exterior. holyfield_mansion4

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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October 29th, 2013

Contractors Looking For Rehab REO Business

If you’re in the construction business and looking to provide, trash outs, cleanups, repairs for REO (Bank Owned & Foreclosure Property) real estate property please use the list below to sign up as a vendor. We receive a lot of calls from contractors looking to do rehab work. Many times we don’t control this flow of business. Most of the time, the work is completed by the REO department (lender) and a national vendor who out sources the work to local contractors. The companies below outsource this business. Please feel free to view the links below and see if you can become a vendor.

Safeguard Properties
Click on “Contractors” to register

http://www.safeguardproperties.com

Cyprexx Services
Click on Prospective Vendors

http://www.cyprexx.net

FAS (Financial Asset Services)
May Have to Contact Them

http://www.fasinc.com

Field Asset Services (FAS)
1.800.468.1743 x 1580.
Erin Moore, Vendor Manager/Recruiter, I will be more than happy to take your call.

http://www.fieldassets.com.

If you have additional companies to add to this list please post a comment with the information. These are the 2 largest companies that work with a lot of different banks!

You may also consider contacting the REO Departments we have listed because they do control some business and this may be another option to get additional construction business. Here is a link to the List of REO Departments.

Don’t get sucked in to paying a high registration fee! Post a question if you are unsure about a company and they are asking you to pay a registration fee.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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