Antonio & Alexia's Blog

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Tue, 05 Feb 2013 15:02:24 -0800

Antonio & Alexia Cardenas

"The Realtors In Motion"

CRS, GRI, E-Pro Certified. SFR (Short Sales, Forclosure Resource) Serving the east shores of the San Francisco Bay, Alameda county: specially the following cities: Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin.

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Understanding the "Stiff" rules of a Probate Sale with Court Confirmation. There are many surprises

Mon, 20 Jul 2009 20:43:34 -0700

The process of sale of real property through Probate Sale with Court Confirmation is a court regulated series of steps that must be clearly and carefully managed. The deadlines are unforgiving, the documentation is specialized, the time elements are critical and the court's oversight must be honored at all times by all parties.

If you bought a house with a tag that reads: "Probate Sale with Court Confirmation" required. What is the one question you don't want to hear at the court confirmation hearing? Are there any over bidders? After being in escrow for 30-45 days, having your loan approved, maybe even having the moving van packed and ready, someone might stand up in court to answer that question and buy the same house on the spot, or at least make you pay more for it. Being ready to deal with this situation could bring this type of purchase to a happy ending.

A Probate sale is a legal proceeding used to liquidate and settle a person's legal and financial affairs after death. Here in California, these sales are conducted in the Superior Court of the decedent's county of residence at the time of death. Court confirmation is either chosen or required, there are probate sales that do not require court confirmation and are handled just like any other sale.

Why is there a Probate? How much does it cost? When does it happen? How long does it take? These are all valid questions that are better left for an attorney to answer, that is why you should not take this information as legal advise.

From the Realtor's point of view, if you see a house for sale with a label: "Probate Sale With Court Confirmation" be aware that this tag affects the offering price, the condition of sale, the paper work used and most important of all... you will not know whether you bought it or not until about 30-45 days after you get your offer accepted, and you'll need the judge's gavel to confirm that you are the new owner. Understanding the following steps ought to help you stay on course:

* The offer must be written on a Probate Purchase Agreement form. These documents clearly specify some of the most important time elements involved, plus it clarifies the differences between 3 different Probate Sales.

* An offer on a Probate Sale with Court Confirmation must be at least within 90% of the asking price which is the Probate Referee's Appraisal Value. Offers below that will not be accepted.

* A 10% deposit must be presented with the offer; often times it must be a cashier's check issued in the name of the decedent's estate. Buyers with no down payment VA, or FHA loans with minimum down payment might not have a chance.

* Once the offer is accepted it will have a "conditional acceptance" and the time periods for physical inspections and appraisals begin at this point. After the buyer's removal of such contingencies a court date for the confirmation hearing of the sale is scheduled.

* On the day of the court hearing (which is 30-45 days after removal of contingencies), all parties must show up in court. During this hearing, the previously accepted bid may be overbid by another buyer, this interested party must appear with cashier's checks in hand and be ready to raise the price under the supervision of the judge.

* Buyers must fully understand the overbidding process, each court will handle the rules differently, but for the majority it is A) 5% above the accepted price plus $500. Or B) 10% of the first $10,000 plus 5% of the balance of the accepted offer. In each case the judge will announce the minimum amount of the overbid after that; it could be $1,000 or $10,000 depending on the price range. The winning bidder must deposit at least 10% of the final price with a cashier's check.

Any person who bids in court must make an unconditional offer. Obtaining financing or approving inspections should not be a condition of the offer. In the event the buyer defaults after a court confirmed sale, the buyer may lose the deposit. If the court confirms the sale to an over bidder rather than the original buyer, the original buyer's deposit shall be refunded.

Real estate commissions are also subject to the approval of the court, and the rules are very different and very clear. If the over bidder has a Realtor, or worse, if there are other bidders with Realtors, what happens with the commission? Is the first purchaser's Realtor entitled to a commission if his buyer is not the winning bidder? What happens if the over bidder does not have a Realtor? Once you are involved in this type of sale, either as a buyer or a Realtor, or Executor, you better know how the rules apply to you. A Realtor should encourage the home buyer to familiarize himself/herself with this process.

Above all: AVOID THE PROBATE PROCESS... CREATE A TRUST! Sorry, I did not mean to shout! But you'll better not get caught dead without a will; your family will make you pay for it! (By not cleaning your grave yard for example)It will save them lots of time and money so have your affairs in order just in case, no matter how young or healthy you think you are. AMEN!

Antonio & Alexia Cardenas, "The Realtors In Motion" GRI, CRS. Serving the East shores of the San Francisco bay. Alameda and Contra Costa counties, particularly the cities of: San Leandro, Castro Valley, Hayward, Oakland, San Lorenzo, Pleasanton and Dublin. Visit us at: www.listedbyantonio.com Call us, we'll come and TANGO with you! (510) 326-4263

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Bank Approves Short Sale, Closes Escrow, then Returns the Money and Conducts a Trustee Sale... New Owner is Asked to Leave

Mon, 15 Mar 2010 21:19:02 -0700

Could this possibly happen? Are Short Sales now becoming Long Sales? In this case the escrow closed, buyer moved into his new home and 30 days after that, he received a visit from a Realtor who told him to move out because the bank had acquired the property via a trustee sale.

Once escrow has closed, the issues of the prior owner cannot affect the new buyer of the property. After all, a title insurance company is responsible for the transfer of a clear title to the new owner, and the only lien should be the new mortgage that the buyer acquired in order to buy the property. Every property sold with any type of financing is required to have title insurance.

In a typical transaction when a borrower stops making payments, a Notice of default (NOD) is recorded 90 days after missing the first payment. A Notice of Trustee Sale (NTS) is recorded 90 days after that. In the meantime, the seller can opt to sell the property if the bank approves what is called a short sale, meaning that the total amount of the mortgage owned against the property is going to be short of the full amount. A short sale can only be initiated when there is an offer on the property.

When there are two or more lenders, like in this particular case, they negotiate an agreement between them, based on how much money from the proceeds each will take in order to sign off the lien and allow the property to sell to a new buyer. During this time, however, the trustee might schedule the sale of the property using the powers granted by the Note and Deed of Trust.

When lenders are negotiating an offer, they postpone the Trustee Sale in order to allow the short sale to happen. The trustee sale can be postponed many times. When a short sale is finally approved and the escrow closes, then the trustee sale is canceled completely. It is the banks responsibility to notify the trustee that the sale has occurred. It appears that in this particular case, the bank failed on this critical last step.

A recording of the new deed should signal the end of the entire transaction, sellers move out of the house, new buyer takes possession and a new lender becomes the only lien holder. In most cases that is the entire process. No matter what happened before, if the bank accepted a short pay off and the new buyer bought the property, no other procedures should happen for many years to come, and it will be up to the new buyer and lender to do whatever they want, a process entirely independent of the the prior sale.

In this unusual case in Fremont, California, the bank approved the short sale, signed the closing documents, got paid and then conducted the trustee sale anyway ... and become the new owner of the property it just sold. As a matter of fact, the lender send the check back to the title insurance company 30 days after escrow closed and ask to have the sale rescinded. Title company send the check back saying it cannot do that. Meanwhile the title of the property still shows Indymac as the new owner, in other words, it shows as an REO. How can this happen?

No matter how I look at this situation, there is no way that a Realtor or a Home Buyer can see this coming, or prevent it from happening. Escrow closed in December 2009, Trustee Sale happened on January 2010, it is mid March 2010 and we still have no resolution to this problem, the title company says they are negotiating with the bank and that the issue will be resolved soon...

Needless to say, the new buyer is not happy at all, he is receiving visitors that look at the property as an REO and think it will be available for sale. This particular buyer looked at over 50 properties, wrote 27 offers and after almost a year, he moved into his new place... I wonder when he is going to start truly enjoying his new home.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

7 Proven Strategies to Help You Buy Your Very First Home

Thu, 26 Jan 2012 23:28:44 -0800

Despite the difficulties in obtaining financing for a home purchase, there are great rewards for those who dare step into home ownership. You will need a couple of qualified people to help you navigate through this obstacle course: A Lender and a Professional Realtor. Open your eyes to today's opportunities! Here are 7 proven strategies to help you navigate to a successful home purchase.

Begin by gathering all your financial documents first. You will need among others: current pay stubs, copies of tax records from the last two years, recent bank statements for all your accounts, copies of Divorce decrees if applicable. If you have funds in CD's or 401Ks or other income, you will need to bring copies of those documents too.

The next step is to talk to a lender about your finances. Find out what you qualify for, how much money you need to have for a down payment plus closing costs. You can do this by simply asking your lender to do a pre-qualification for a loan. After this meeting you should know what your price range is and how much your monthly payments will be.

Make a list of what is important to you and your family when is comes to housing. Do you really need to have 4 bedrooms? is a pool an absolute necessity? Keep in mind that the First Home is not exactly your Dream Home. Buy below your maximum qualifications if you can, that will leave you room to save money by applying a small amount each month to the mortgage payments to reduce the principal amount borrowed.

Meet and interview a local, Professional Realtor. Choose a person that specializes in the area that your are interested in. You can do a lot of research on your own online, but a professional Realtor's help is absolutely necessary. Remember this: Realtor's commissions are paid for by the home seller. There is no cost to you when you buy a home. Use his/her knowledge and expertise... for Free!

There will be other professional trades people that will get involved in a typical real estate transaction. your Realtor will assist you here and on your behalf, he/she will contact home, roof, termite and other inspectors. The lender will take care of having the house appraisal done for you.

Once you have made an offer on a house, you will make a cash deposit into a title insurance company. This neutral company will not only run an escrow for you, it will also ensure the title of the house in your name after escrow closes and you become the new owner of the house.

Read and understand all documents handed to you and the time elements involved during the transaction. The more you know the better it will be for you. if you take these steps in order, once you have picked the right house and made and offer that has been accepted, you will have about 30 to 40 days before you can get the house. If the house, however, is in a short sale, it might take months before you can close the escrow and call that home your own.

There are plenty of reasons to buy your first house. Beginning with pride of ownership, appreciation, mortgage interest deductions, property tax deductions, capital gains exclusion and build up of equity just to name a few. The cycle of real estate will continue, just as when prices went up and then come down, we will see in the near future this trend reversed. Buying a house in the long run is far better than renting.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Should You Write the Offer Before You Even Show the House? But Of Course! Here is Why

Thu, 18 Aug 2011 12:18:09 -0700

The CA Residential Purchase Agreement is the the only document that a lender will accept as the basics for granting a home loan. Home buyers, specially first time home buyers, are reluctant to sign such document on the spot, after all, with the required Buyers Inspection Advisory and the Disclosure Regarding Real Estate Relationships, those are 14 pages of gibberish mambo jumbo stuff that is not easy to understand when read for the first time.

At the height of the market, we lost a great home because the first time buyer took 2 days to read the contract and another 3 hours for me to clarify the questions he had when he read it. By the time we presented the offer, another buyer's offer had been accepted. I could not blame the buyer for not signing on the spot. For this type of purchase, as a consumer, I probably would have done the same.

That is when I decided to actually write the offer earlier and even before I show the first house to buyer looking to buy a home. Once we tour the houses for the first time, I give the buyer the entire 14 pages of an offer written on the best house we saw. By previewing first, I would know which house to write the contract for. Since I do not show houses unless the buyer is pre-approved, I also know the finances, I write down the exact numbers for a down payment and even calculate an estimated buyer's closing costs.

Having the buyers have the contract on the first tour of houses, with real numbers, and sending them home to read those documents is a huge time saver for both of us. I tell them to assume that we just bought this house, and that these are exactly the documents that we will use when presenting an offer. I ask them to read those pages, and make notes on them to ask me when we see each other again. By reading the contract without any pressure for time, they will be ready when the time comes to sign an offer. I do make a point on subsequent meetings to ask about the contract.

Yes, this might sound like putting the cart in front of the horse. But we accomplish so much, the buyer's confidence on the process is key for the entire transaction to start and finish on time. A well informed and educated consumer is also a very happy Home Buyer. This type of home buyer makes the lender, the seller, their Realtors and the other 30+ people who somehow get involved in a typical real estate transaction very happy too!

Taking the steps in this order takes the fear out of actually purchasing a home, the knowledge, understanding and familiarity might avoid the infamous "Buyers Remorse" for which I also have a prepared medicine. After the offer is accepted, I give the buyers colorful M&M's in a prescription bottle. I tell them to take 2 pills when they feel scared or uneasy about their purchase, if the feeling is too intense to double the dose, that the color of the M&M's does not matter.

But if they feel real bad about what they bought, to call me immediately. If the buyer is not 100% into it, I want them out of the transaction as early as possible. If you are looking to buy a house right now, ask your Realtor for those documents and familiarize yourself with them.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Would You Take an Overpriced Listing? Yeah, Me too! A Change of Heart

Tue, 12 Jul 2011 19:52:39 -0700

In my 26+ years in real estate, I thought I had seen it all... well, not exactly all, here is a new one for me. I have been very adamant about NOT taking a listing that is not priced properly. Overpriced listings are bad for everybody, for the seller, the home buyer, the appraiser, the Realtors, even the neighborhood! Why is it that sellers want yesterday's prices? haven't they read the real estate news? The market has dropped... a lot!

About 3 months ago, I was called to put a house on the market, I did my usual research, took a good look at the house, reviewed the comparable sales with the owners and help them secure a stagger, and even a carpet outfit to replace a worn out carpet in the hallway. My suggestion, based on comparable sales, and my knowledge of the neighborhood, (I live 4 blocks away from this home) was to price this home at about $650,000. The sellers were not happy at all. They wanted to list it at $775,000! what a big difference!

I looked at my research again, and could not find a justification for their price. I knew that I will never have comparable sales for the appraisal. I offered to list it at $675,000 with a proviso that we reduce the price after 3 open houses, the difference was too big for them to overcome, my standard speech for a situation like this one was given: "... I am sorry, I rather turn you down, than let you down..." I cannot work with your price. They told me, they will think about it...

The very next day, I received a beautiful plant delivered to my house with a note of thanks. They informed me that they were going to go with another Realtor, and thank me for my efforts. 3 days later, the house was listed on the MLS at $775,000. The other Realtor had open houses almost every weekend, after 30 days the price went down to $750,000, another 3 weeks later to $725,000 5 weeks later the price dropped again to $699,950 and then again to $675,000, then it went pending. Last week it closed escrow at $640,000!

Who dropped the ball in this scenario? the other Realtor did get paid. I upheld my high values and did not get paid, the other guy spent time and money, but got the job done. Then, I realized, that the seller does have the right to try and get the best possible price for his home... Even if it is an unrealistic price to begin with.! Sellers, are at a disadvantage when playing real estate, if the seller does not get the best price, he cannot go back and fix it. The buyer can realized he is overpaying and pull out of escrow before is too late, the seller cannot accept a higher offer once is in escrow.

If this would have been an isolated incident, I would have not even writen this post. But earlier this year, I had a similar situation where I was called to sell a house and my price based on comparables told me the house was worth $630,000 tops, I always look at how I will provide the right 3 comparable sales to the appraiser. I did not have them here either, I also refused to list it at their high price. The seller had another agent list it for $675,000 and it sold in ONE day! The kicker? an all cash buyer come and close escrow in 7 days... yes, this seller was lucky, because there are not too many all cash buyers ready to overpay for a house anymore.

As Realtors, we are paid for our knowledge and experience, but overpriced listings and no comparable sales are a bad and very expensive proposition. Appraisers are on the firing line, and we have lost weeks of previewing, showing houses, writing contracts and then after being in escrow for weeks, the appraisal comes and shuts down the entire transaction and sends everyone back to square one. Does anyone out there have the magic formula? I would like to know.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Home Sellers Should Go Undercover, Pose as Home Buyers to See How Potential Listing Agents Work

Mon, 18 Apr 2011 21:57:57 -0700

If a future home seller would take the time to check the credentials of potential listing agents, they could very easily weed out those who are not fitted for the job. After all, a listing agreement presently will tie up the seller to his Realtor of choice for about 4 to 6 months. If you, as a home seller, have the wrong representation, it's your fault. You, Mr. Seller did not do your homework, as simple as that.

A quick look at my MLS, here in Alameda County, on the East shores of the San Francisco Bay, shows an incredible array of listings of all types. The ones that stand a good chance of attracting a home buyer, are those that simply have the basic information, i.e. a few photograhs, a good description of the property on the remark section, and an easy to find listing agent with an office with a person who actually answers the phone during normal working hours. A few Realtors even have the audacity to write on the comment section for other Realtors: "NO calls, only emails."

The person who is going to be selling a property, should call on one of the listings of the Realtor he is thinking of giving the listing to and pose as a home buyer. Many things could come out of that conversation that could help decide whether this individual is the right person for the job. Here is a short list of the items to look for.

How quickly does this Realtor responds to calls?
Make a tentative appointment to see the house. How flexible is this person?
Is this Realtor eager and available to show the house within hours?
Ask where on the Internet you can find more information about the house
Compare the Realtor's web site with others. How do the listings show?
Is the site easy to navigate? Is information clearly presented?
How well does this Realtor know your neighborhood? How does he sells it?

In my area, I know there are a couple of listings that will probably never sell! One has a Realtor that works about 3 hours away. I can just imagine, how he reacts when someone calls and ask to see the house. Obviously, he just expects that putting the house on the Realtors MLS, another Realtor will sell it for him. Another moved out of state but still comes every now and then and lists homes for sale and his co-workers sort of take care of his business. If these sellers would have just made a couple of phone calls, and pretend they were home buyers, they would have seen how bad these houses were represented. Mistakes like these can costs home sellers thousands of dollars.

Do not allow YOUR HOUSE to be what I call an "Orphan Listing" Similar to REO's and some Short Sales, those are listings where it appears nobody is in charge! banks sometimes assign listings at random with agents who are not familiar with the area, and do not seem to spend any time advertising those listings. Their great marketing ploy is only to post the listing on the local MLS.

Finally, if you already have your home on the market, go find it on the Internet! Find out how it shows, is it missing important information? use the list above and see what happens. On almost any real estate site on the Internet you can simply put your zip code and a price range, your house should show in all it's glory... or not! If your Realtor have done his/her job properly and professionally, and your house has not sold... REDUCE THE PRICE!

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Are Home Borrowers The Only Ones with Ethical Responsibilities When Walking Away from Their Mortgages?

Mon, 31 Jan 2011 01:33:31 -0800

One of my best friends is seriously thinking about walking away from his mortage via a strategic default. But his guilt and sense of moral obligation and ethical responsibiliies are killing him. He wants my opinion... he bought his home in 2007 for about $850,000 and it is now worth only $550,000. His payments are going to almost tripled the amount he currently pays in about a year. A strategic default occurs when a homeowner stops paying their mortgage even though they are still financially able to do so.

I told him the standard Realtor talk: I could not tell him what to do, he needed to talk to a his bank about possible options for a loan modification, also to talk to his CPA to understand potential tax liabilities, and to a lawyer for potential legal ramifications, and to consider the hit on his credit scores.

Then we went off record, and as friends we discussed the issue in an open manner. I do not understand why is the homeowner the one that is supposed to be the only responsible party and to pay up and not go back on his promise to hold his own. A loan after all, is a business transaction between an investor and his partner, the borrower. The Investor puts up the money and expects a return in his investment, the borrower agrees to make payments until the loan has been paid off completely. Investor makes his money back plus some helfty profits and the borrower will end up with the property free and clear, hopefully worth a small fortune.

There is no investment of any kind that has no risk at all. Lenders have always reaped good returns on those investments, and traditionally have had good safeguards against losing. They even have Private Mortgage Insurance (PMI) that they ask the borrowers to pay for, and the government has a golden parachute to bail them out. How come they do not have moral or ethical obligations to make them feel guilty? They have scared people into staying in their homes and continue to make payments even though, those houses will remain underwaterl for many years.

Home owners traditionally have paid their mortage, and their house was one of the major debts that they wanted to pay off first. The investors greed helped create the economic collapse, the no-money, interest only loans they sold to unqualified borrowers were irresponsible, they deserve to lose. Home borrowers already lost their downpayment, and their closing costs, along with their dreams, sometimes compiled with the loss of a job and their own self steem. Why should they feel guilty about losing the house? why should they be the only ones asked to be moraly and ethically correct? The lenders have recovered quickly and will go on making money. Homeowners, however, will take years to recover, if ever.

We concluded that as equal partners in this transactions with the banks, homeowners should be able to call it quits, accept the loses and go forward and not feel guilty about a strategic default. Making high payments on a house that has no chance of providing a return for years to come is not in the homeowners best economic interest.

My friend will let the house go, and start the recovery period, knowing that nobody will loan him money for at least 3-7 years. He will rent for a while, save money and be prepared to invest in homeownership again... sometime down the road. He realized that he has nothing to be ashamed off, or guilty of, he will lose his down payment or initial investment, it was a risk he took, the lender took a risk too, it is after all, a simple business transaction that did not pay off for either party. If you make a bad investment, you have the right to walk away from it.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Bay-O-Vista Neighborhood is The Best Place to Live in San Leandro. California

Thu, 30 Jul 2009 16:23:04 -0700

Bay-O-Vista Neighborhood is located in the rolling hills east section of the city of San Leandro, CA. This is generally the most expensive area in this town of only 75,000 people. Situated right in the middle of the San Francisco bay, it has easy access to the Bay the San Mateo and the Dumbarton bridges. Only 20 minutes to downtown San Francisco, 10 minutes to Oakland International Airport and 45 minutes to San Francisco Airport.

San Leandro's Bay-O-Vista offers homes that are very spacious, typically ranchers with an average of about 2,200 square feet mostly in one level, most homes here have at least 3 bedrooms, two full bathrooms, two fireplaces and a spacious 2 car garage and boast very generous sized lots. The streets are wide and the views are impressive. There is no public transportation in this area, nor miradors or places for the general public to come and enjoy the views of the bay, this helps keep Bay-O-Vista a very quiet, and low traffic area.

The most impressive part of San Leandro's Bay-O-Vista are the panoramic bay views, in the distance you can see the bay and in a clear summer night, (like in the picture below) you get presented with a show of lights at dusk, sunsets are the best part of the day for the views. At the back of the hill, the views are of the park and the lake.

The natural boundaries of Bay-O-Vista are; on the west side Highway I-580 and on the east side Anthony Chabot Park. On the South is the border with Oakland. Bay-O-Vista Family fitness, Tennis and Swim Club located right in the neighborthood gives preference to those who live in the area. The location is ideal for those sports aficionados, there are within walking distance a semi private park and picnic area at the end of Estudillo Avenue, hiking trails, fishing and boating are offered by the Chabot Park year round.

The real estate in Bay-O-Vista maintains very good values, most of these homes are either custom or semi custom with a bevi of features that are very unique. There is a mansion that has 6,700 square feet, 6 bedrooms, 4 full bathrooms, 2 half bathrooms, 2 kitchens, family and rumpus rooms plus an indoor swimming pool with a retractable roof, topping that with a beautiful view of the bay and the San Francisco skyline. As of mid 2010 this home was on the market for only $1,400,000. This is only one of the many custum homes that are very unique to this great area.

Most of the people who are the original owners bought their lot and had the house built to their specifications. Bay-O-Vista residents are very proud of their neighborhood. It is by far the very best area to live in San Leandro. Call, us, we would love to take on a tour of available homes for sale in Bay-O-Vista.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

The Financial Lessons I Have Learned From This Recession and The Way It Changes How I Sell Real Estate

Fri, 10 Dec 2010 20:08:02 -0800

Have you ever been on a roller coaster? Then you know the feeling of going up, and up, and up... and then there is a point when you realize you are about to experience one of the most basic laws of nature: what goes up, must come down! Yes, I am a Realtor and this analogy is very real in my business. Since 1985 I have experience a few of those turns... this one however, is by far the most long lasting, meanest and most destructive business periods I have ever seen in my profession

I believe most Realtors are on a survival mode right about now, here in sunny northern California, the inventory of homes is still way too high, the banks are not helping anybody, the home buyers are scared and those who can afford and qualify for a loan are waiting to see what happens next. Not a friendly atmosphere for a self employed person who earns a living helping people buy and sell real estate. Looking into the future, my nest egg has been reduced to a couple of twigs...

In the past at this time, I would be planning my next year, I will have set goals, and plans and objectives to reach within the next 12 months, how many listings I need to take, of those how many could sell and based on that, what type of budget I will have, then where and how to spend that money to generate the listings and so forth... Now there is only one goal: Survive!I have enough listings, but they are not selling!

When I look back at where I am now, and how I got here, I can see that a few steps I took many years ago were very good, others, not so good. Here are the lessons I learned during this recession:

Keeping Some of Your Hard Earned Money Must Become a Priority. I always thought that you should have at leas a 4 to 6 months reserves. In this recession, we need about a year or more. I once read a book where the author insisted that everyone of us should pay ourselves first. That we should keep at least 10% of whatever we earn and put it aside and invest it and make it grow. It was a good book, but I did not follow its teachings, I should have. Bad Move # 1

There is NO Safety in Numbers. Not too long ago, I sold one of my rental properties and took the money, met with my "Financial Adviser" and bought some stocks. I was supposed to be "Diversified and Invested" Everybody had stock holdings and was making money in the stock market. A couple of years after my initial investment, my stock holdings had lost about 53% of the original value. Following the herd for safety only works in the wild. Bad Move # 2

Buy and Hold Real Estate. Early in my career, I did listen to a couple of seasoned Realtors and bought a few rental properties, they went up and up and up in value, and then down and down and down some more. When I look at them today, they are still worth more than when I bought them, and they are producing precious income at this time. Good Move # 1

Listen to Your CPA and Build Liquid Reserves. This one is a lifeline that a business person should not live without. Every year, my CPA insisted that I invest on SEP and/or Roth IRA's, reluctantly, I did, not even knowing the difference between the two of them. Today, even paying a tax of about 12% on some, I can access that money within a couple of days. when you are on a survival mode, this is the difference between the life and the death of a self employed Realtor. Good Move # 2

Know That Your Financial Friends Will Betray You. For a business person, good credit lines are the blood of the business, without them, you simply cannot survive. When the going was good, my friends at Bank Of America, American Express, and Visa amongst others, were very happy to provide unsolicited lines of credit, check books will arrive with 0% introductory rates on a new line of credit. My credit scores have always been high and I made all my payments on time. They still reduced the amount of credit and froze solid the lines of credit. Just at the time when their help was needed the most. Because of the lesson learned: Good Move # 3

Do a Complete Inventory and An Appraisal of Your Business. Just writing this blog post, made me think inwards. I started analyzing how I conduct my real estate business. I need to know where I spend my time and money while selling real estate. I started to look in more details at all my financing, We actually got together with my wife and started writing down every single expense. I must confess, I was shocked to see how much we spend. Good Move # 4

This situation will change, and it can not get any worse than what it has been. I can see the dim light at the end of the tunnel. I have learned that I cannot write a check anymore without making a brief analysis: is this money well spent? Can I live without this item, or service? Could I save this money for a rainy day?

On the personal side, it comes down to economics, I truly enjoy and love what I do. I believe that what I have learned from this recession will make me stronger in better times. On the Professional side, however, I have felt the pain that some of my clients are experiencing, I have learned to be more compasionate specially when it comes to selling their short sales, I must work harder to help them ease that pain.

I also realized that uncooperative sellers and buyers are very expensive, if they do not know exactly what they want, and work with me to put together a feasible plan to achieve their real estate goals. If I can not afford to lose time and money, neither can they. I cannot be the answer to their prayers until I know exactly what the heck they are praying for!

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Paying it Forward, How To Lead The Neighborhood Into The Holidays. A Shameless Self Promotion That Works

Sat, 27 Nov 2010 19:07:05 -0800

Back in 2007, when our real estate market started going... nowhere. My wife and I went to a movie called Pirates of The Caribbean. As the movie ended, she turns to me and says, wouldn't it be nice if we make our house look like a Pirate Ship for Halloween? I looked at her in disbelief and started to say "...are you craz..." I changed my thought mid sentence and ended with: You know, that is a great idea, In our ballroom at home, we started building a 40' Pirate Ship.

The very first Saturday of October, we took the pieces outside and started putting it together in our front lawn, in the beautiful Estudillo Estates neighborhood in San Leandro, CA. What we discovered was that people started to come by to look at the unusual display. Working on the Pirate Ship outside our house, we started talking to more people than we were at an Open House on Sunday afternoons. We were not shy about telling them that we were Realtors, a virtual tour of the making of the the Pirate Ship was posted in our web site, we started seeing the numbers to our site go up. The increase traffic generated 2 listings and 4 buyers leads.

From then on, we have made the Holidays our best advertising campaign ever, one that pays it forward, our earth friendly, recyclables, reusable, larger-than-life sculptures in front of our house for Halloween and Christmas lead our neighborhood into the holiday celebrations, it offers the local children a place to go and by selling these pieces of art and donating the proceeds to local charities, we make the famous win-win mantra from real estate a true reality benefiting a lot of people, including our present client sellers.

Here is our 2010 Skeleton Biker, made of paper mache, chicken wire, burlap, conduit pipe and saw dust. We attracted the attention of the local media, a reporter from a major local newspaper come to interview us, we also granted interviews to a TV station, our web site registered over 32,000 hits on the month of October only. That is over a 1,000 hits per day! About a hit per minute! How much could I pay for that?

The plan was to ride this wave from October until January, so we transformed our Skeleton Biker into a Santa Rider, with just a few key strokes, we are now celebrating Christmas. Santa is really coming to town! And the best part is that we receive emails from the neighbors telling us how we altered their routines, as one woman put it: "... it used to be: our house to school, school to our house, now it has changed into: Our house, to YOUR house to School, and then from School, to YOUR house, to our house."

From the advertising point of view, it has been a success story, Nothing beats having children bring their parents to OUR house. We give away colorful teddy bears to them and 2011 calendars to the adults, we hung a flier box in our fence and have an over sized postcard with a color picture of the display and greetings from us as Realtors. In the past we have built a Hearse with a Riper, and a Haunted Castle. We are already thinking about what to built next year. (All ideas are welcome)

The keys to making this advertising campaing work, comes down to: A) To have a genuine desire to help the neighborhood look festive, and B) To use all recycable materials, and to show how to built the sculpture via an educational virtual tour. The rest and best will come later. Give first... give second, and if you have done it right all those good vibes should come back to you. Happy Holidays!

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

How You Can Save Your Mental Health Plus Save Money When Dealing With a Short Sale

Wed, 29 Sep 2010 14:05:53 -0700

As a Professional Realtor, I am in the front lines and play an important part, up close and very personal when representing a homeowner who is facing foreclosure. How do you stay up beat during these trying times?

Selling a house used to be a voluntary, smooth and well thought out process. Typically home sellers would be looking forward to their new place, or new destination. Asking them to prepare the house for sale was greeted with joy and anticipation, everybody in the family would get in on helping sell the house and move on to the next one.

Sadly, that is not the case now, in probably 30-40% of the cases I deal with. The entire process requires a lot more TLC, that infamous "Tender, Love & Care" is far more important now than ever before. Most people do not realize, how critical our role as Listing Agents has become. Dealing with banks and Foreclosures, we have learned where to go, who to talk to, what type of information and documentation are required, but getting all that together from a depressed individual who is short of money, low in self stem, angry with his lender, and maybe unemployed is not an easy task.

When we come to meet with these sellers to speak about listing the house for sale, we can sense the frustration, the mental anguish, the despair that some people have. The entire house is in disarray, the lawn has not been cut for months, plants have not been watered, children don't play loudly anymore, and pets get more aggressive.

You think I am making these things up? As I type these words, I am mentally reliving my own recent experiences with short sales and foreclosure clients.

I need their help, they need my help. We must work together! I need them to stay focus and mentally alert and to work together towards achieving the goal of selling the house and for them to move on with life. I often suggest to start considering these points:

Realize that regardless of the outcome, this situation is temporary. It will change, and it will get better
Sprucing up and cleaning the house will help get a much better price and sell a lot quicker
If the house sells for a good price, your potential deficiency judgement will be lower
Gathering all necessary documents is a must. Short sale approvals will depend on complete packages
If there are young children in the house, tell them what is happening. This could be an interesting lesson. And show them how you can overcome adversity... with their help and support.
The family will be moving, so start packing, do a garage sale, lighten up your load
Get active! Depression will kill you! Cleaning things around the house will help you
Get involved in the process of selling the house. There are serious deadlines, foreclosures are followed by Trustee Sales and then by Sheriff's evictions... if necessary. You need to know when and where to go.

The most important thing is to realize that you are not alone. Unfortunately, thousands of people are in the same situation you are. The sooner you get out from under this situation, the quicker you will begin the process of recovery. You have been successful in the past, that is why you become a homeowner, you can do it again... FHA loans are waiting for you just about three years from foreclosure, remember that.

Finally; Not all Realtors are created equal! Some are true Professionals, who have made an effort to educate themselves in the intricacies of dealing with short sales and foreclosures. Begin by looking for an experienced, knowledgeable and Professional Realtor. One who has done a few short sales and foreclosures, because experience and knowledge does count here. This is not a job for a beginner.

If you do not know anyone, feel free to email me, or call me, because no matter where you are in the county, I am sure I can find you the best local Realtor for your market. REMEMBER THIS: There is no cost for this service. For your information: I will get paid a small referral fee for connecting you with that person. That is why, I'll make sure WE get the very best one! Visit us at: www.listedbyantonio.com

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Discover a Proven Method That Can Save You Money and Almost Guarantees You A Secure Retirement.

Thu, 23 Sep 2010 18:59:15 -0700

What if a good portion of the money you pay in rent, were to be put on a place where you will get some interest and when you decide to leave that residence you get a hefty payoff? As a homeowner, that is exactly what you get. The sooner you start, the earliest you finish.

One of the most basic needs for humans is shelter, having a roof over your head is of primary importance. How do you go about dealing with that issue all your life is very critical to your financial wealth. Renting or owning the place you live in could determine a lot of things when you retire. Owning your house could make this experience one of the most profitable ones of your entire life. After all, when you retire, you might need to have a place of your very own with no mortgage payments and perhaps some income from a few rentals to help you financially. The sooner you start, the better it will be.

Real estate has always been a major part of the portfolio of any millionaire, and a huge part of the assets of a billionaire, you might not get to that level, but that tells you that holding real estate is a good thing. Let's face it, there is less and less land to build. There will always be demand for good housing, selling it or renting it most likely will be profitable.

Our tax system rewards those who take the risk of buying real estate. As a homeowner, the only deductions you get from you income taxes are those associated with mortgage payments. When you become an investor, you actually get something called "depreciation." which means that by simply owning a rental property, you get to deduct the value of the "improvements" in a straight line of 27.5 years. That along with the deductions of all the expenses incurred with running your business of landlord gives you a very big tax break.

Yes, real estate is cyclical, some times it goes up, and sometimes it goes down. But just look at the price your parents pay for their house, it is not even enough to pay the closing costs of a house today. I am sure they had their own declines in prices during their lifetime, but in the long run, they will make hundreds of thousands of dollars in profits. The tax system allows them to keep most of that money tax-free also, specially when it is their principal place of residence.

Here in my own neighborhood called Estudillo Estates in San Leandro, California where I live and work, I know of seniors who bought their places for about $30,000 to $40,000 30-35 years ago, those same properties today can be sold for $600,000 to $800,000 and they are paid for. Their retirement is a bit better simply because they invested in their home.

If you pay rent, you will never get anywhere near that type of financial bounty that homeowners get when they sale their principal residence. Your landlord and his/her heirs will be the ones enjoying the fruits of YOUR rent money.

Making an effort to invest in real estate today is as good as it will ever be. We do not know what prices will be next year, or ten years from now, but if you can pay rent, you could be paying a mortgage, which is building a nest egg for a happy retirement. Talk to a lender, or a Realtor, then get out there and get excited about the opportunities that this cycle or real estate offers you.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

The Quick's & Slows of Dancing with Home Buyers

Sat, 07 Feb 2009 16:44:23 -0800

By giving free dance lessons at their house in the middle of the week, these Realtors are looking for business to the tune of the cha-cha-cha and even tangoing with their potential home buyers.

A few minutes before 7 PM the door bell rings, a voice comes through the video monitor and shouts "I'll be right there..." as the 2 visitors wait for the door to open they are joined by another couple that just arrived, then another, and another, some with children in tow, they all have made a commitment to be there every week exactly a 7:00 PM. As the group greets each other the door opens and the sound of music can be heard, hugs and kisses greet the visitors, someone brings a case of water but most bring a pair of extra shoes. The music playing in the background and the colorful Christmas strings of lights give the ambiance a party atmosphere, even though it is a late Wednesday evening at the beginning of February 2009.

As the guests arrive, the hosts instruct everybody to start warming up and stretching, class is about to begin, about 16 couples fill the 900+ square feet ballroom inside the house. The Pergo floors, mirrored walls and surround sound system with a computerized DJ transform this house into a dance studio, this is the private ballroom at the residence of Realtors Antonio & Alexia Cardenas in the Estudillo Estates neighborhood in San Leandro, California.

After everybody has signed the register, the group gets serious about the task at hand; they are learning how to dance. In the middle of the week, after work, they know that they only have 5 free dance classes and they want to learn as much as they can. The hosts give a demonstration of what the class will be about and then begin to explain every step. "Ladies behind Alexia, gentleman behind me", calls Antonio, one-two-three... four-five-six. Soon the group gets into the class paying attention to every detail.

These instructors are very well known around town for being "The Realtors In Motion" and ballroom dance competitors, they have incorporated their love for dance with their work as Realtors. Their over 200 free ballroom dance demonstrations performed around town have given them status of Stars. In the past when asked if they gave classes, they always said no. Their business after all is and has been for the last 24 years exclusively selling real estate, dancing was simply a hobby, a serious hobby nevertheless because they are active amateur dance competitors. Dancing gets them up every day of the week at 6:30 AM to practice, half an hour of stretching and then dancing from 7 to 8:30 AM Monday through Friday. They work mostly out of their home office.

Dancing is now more important than ever before. It all started when they realized that the real estate activity during their Sunday Open Houses had come to a complete stop. Sometimes in a period of 4 hours they'll be lucky to get 2 or 3 people. The newspaper advertising, the bus benches with their names and phone number on them plus several open listings around the neighborhood with for sale signs have not made the phone ring as often as it used to. Something needed to change. Dancing had to become a vehicle to sell real estate.

This is an up-close and personal approach unlike any other, the idea of holding the home buyer in their arms for a few minutes right after they meet him/her for the first time sounded very interesting to say the least. One of the ideas they had during a brain storming session was: If people do not come to the Open Houses on Sundays, let's bring them to our home during the week and teach them the Salsa, The Cha-cha-cha, even the Tango, the Night Club 2 Step and the Waltz. The local hair salon that Antonio visits regularly was the perfect place to start. He asked his hairdresser to put together a group of friends that will make a commitment to come learn how to dance for 5 Wednesdays in a row in the privacy of his private ballroom at home. He asked her to invite some of her clients too.

In order to be as transparent as possible, the first night they met their students they explain why they were giving these free classes, they not only asked for their help in finding people who wanted to buy or sell real estate but also asked everyone what they did, and by doing that encouraged everybody in the room to do some networking during these meetings, after all "We all need each other, we are always someone else's consumer or client no matter where we go or what we do, we all need help at this time, no matter what type of business we are in" Alexia explained. Conveniently they invited a local loan officer and her husband to join in and she was prominently introduced to the group.

The dancing classes are over now, and a "Ggraduation Party" has been scheduled for the following Sunday afternoon. The group is bringing their friends and relatives (with especial invitations on those who want to buy or sell a house) along with food and drinks, they are expected to show their newly acquired dancing skills to them. Before they leave, they will be given appointment calendars (with pictures of dancers of course), teddy bears with a bow that has Antonio & Alexia's phone # on it plus a few of their business cards. This group will be invited a couple of months down the road to take yet another set of 5 different classes. But for now they must practice at home... because there is a new group of beginners that is set to start the very next Wednesday night for another 5 weeks of dancing, and they too will have their own graduation party. These Realtors plan on dancing for as long as they can to increase their network of potential clients.

There is a proviso however: You will get access to these classes every single week and with every group if you help find a home buyer for them. What's the Grand Prize? Front Row Seats for 4 people to watch Antonio & Alexia in full flight at their next ballroom Dance Competition in San Francisco. The Cardenas seem to have found a new way to dance the Real Estate tunes in these trying times.

Antonio & Alexia Cardenas, "The Realtors In Motion" can be reached at (510) 326-4263 www.ListedbyAntonio.com Serving the County of Alameda in the heart of the San Francisco bay area, especially the cities of Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!

Home Buyers Who Celebrate Too Early the Purchase of Their New Home Might Not Have One When Sober

Fri, 30 Jul 2010 17:16:00 -0700

Getting a home loan today is getting harder and harder, and home buyers who are unprepared could find themselves homeless if they misbehave while applying for a loan. Lending institutions now check, double check and triple check their applicants until the very last day they fund their loans.

A recent first time newly wed home buyer found out the hard way, how banks fears of having another foreclosure is making them pull their loans at the very last minute. This particular loan applicant went through about 35 houses, wrote 14 offers, responded to 10 counter offers, and finally! his offer was accepted on first place! Since he had done all the prequalification for the loan, he was informed that he did not need anything else, except to wait for another 3 weeks to close the escrow. He was so happy, that he decided to go out and celebrate with a bunch of friends... bad idea!

After a few drinks with his buddies, they noticed a furniture store across the street from the bar, they decided to offer some advise and help him pick the right furniture and surprise his wife with his purchase. His friends assited him with a lay-out plan to buy a dining room set, a large sofa with a couple of recliners, plus of course a flat 40+ inch T.V. A small down payment was paid and a credit was established. (ouch!) The idea was to move the furniture inside the house when escrow closed and surprise the wife when she opened the door and finds that the house come in with new furniture... (good intentions though.)

Needless to say, the wife was very surprised! She did not even got to see the new furniture... or the house for that matter! because the bank called the day after signing to tell them that the previously approved loan had been denied! The bank had run one more credit check prior to funding and found out that the FICO score went down because of the new purchases. No matter how hard they tried to fix things up, they did not get the loan, they were lucky their landlord help them stay as renters where they lived.

While applying for a loan, stay put and do not spend a dime on credit! do not cosign for anybody, do not apply for anything that might generate even a simple credit check. Banks look at that behavior as bad business and will not hesitate to cancel everything on the mere suspicion that the buyer is not credit smart at such critical point.

The consequences for everybody involved in this transaction are devastating, a huge waste of time and money, that could have been avoided had the Realtor or Lender made a point to warn this first time buyer not to go shopping for anything while in escrow. I am making now this incident a must-tell story for all my buyers, it is a way to get this point across in a very clear and painful way, so they remember.

Antonio & Alexia Cardenas

"The Realtors In Motion"

Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

Call us, We'll come and TANGO with you!