Kevin Smith Real Estate Podcast

There are many pros and cons to buying or selling a home right now. Here’s what you need to know. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Today I’m discussing the pros and cons of buying or selling a house during this pandemic. People who have lost their jobs may not be able to make their mortgage payments and might not be able to keep their homes. Of course, that’s heartbreaking, but they’re able to sell right now despite the health crisis. Also, more houses coming onto the market benefits buyers. Additionally, interest rates are currently extremely low. To learn more about buying and selling amid the coronavirus, watch the short video above.

If you want to avoid having a nightmare tenant move into your property, here are five tips you must remember. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Here are the top five tips you must remember if you want to avoid having a nightmare tenant: 1. Make sure they have a completed application. This way, you’ll be able to follow up with them and find out more about their personal and work history. 2. Make sure they have a good credit report. For this, I use companies like RentSpree and TenantReport.com. They charge anywhere from $20 to $35, and they’ll provide you with a complete credit report along with the potential tenant’s credit score. I typically look for a score above 720, but exceptions can be made, depending on the explanations. Find out the applicant’s current pay history, whether they pay on time, and make sure they don’t have any foreclosures or bankruptcies. 3. Ask for bank statements. I usually ask for two or three of the applicant’s latest statements. These statements will show you a pattern of their current bills, and you can compare them to their credit report. 4. Meet the applicant at the property. This verifies that the property is exactly what they’re looking for. It also gives you an opportunity to introduce yourself, establish a great rapport, determine the best means of communication, and go over a few ground rules (e.g., where they’ll be parking). 5. Beware of any applicants who want to move in immediately. Any situation where applicants want to move in immediately constitutes a red flag for me. Why do they need to move in so quickly? Haven’t they planned this out? This isn’t to say that everyone has to follow the typical 30-to-45 day moving timeline, but in this case, I recommend getting in touch with their current landlord and asking why they want to move out so quickly. As always, if you have questions about this or any real estate topic, don’t hesitate to call, text, or email me. I’m happy to help.

David Marzinke of Movement Mortgage is here to explain a great program for self-employed borrowers. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Self-employed borrowers take a lot of deductions on tax returns to reduce their exposure come tax time, which is right around the corner. So, instead of using their tax returns to come up with their qualifying income, David Marzinke and the Movement Mortgage team uses their net income to determine how much home self-employed borrowers can buy. They can look at either the borrower’s business or personal bank statements, depending on how they structure things, to come up with qualifying income based on those deposits. Self-employed borrowers can increase their purchasing power. This increases the self-employed borrower’s purchasing power, as they’ll be able to show their full deposits and present more income. There are some limitations, however: The self-employed borrower has to have been in business for at least two years, and they need to own at least 50% of that business. As always, call, text, or email if you have questions about this or any other real estate or lending question. We’re here to help and would love to hear from you.

Cross collateral loans can help you buy and sell at the same time. Here’s how. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Today I’m joined once again by Dave Marzinke of Movement Mortgage to discuss cross collateral loans. I have a client who’s looking to sell a $1-million house in Mission Viejo that they only still owe $550,000 on. They’re also looking to purchase another house, so the plan was to sell their current home first, and close on their new home, which is listed at $1.2 million. However, this process comes with moving problems and whatever complications arise from needing to coordinate closings. This is where the cross collateral loan can help. Nobody wants to be a contingent buyer and have to sell their current property and be in escrow before making an offer on a new home, so this loan allows you to place a loan on two properties at the same time. It also allows for more flexibility on the down payment you’ll need for your new home. Nobody wants to be a contingent buyer and have to sell their current property and be in escrow before making an offer on a new home. So hypothetically speaking, let’s crunch the numbers for my client. The combined value of their current home and future home is $2.2 million. The cross collateral loan can be up to 90% of that value—in this case, $1.98 million. After paying off the balance of their current home, that leaves them with a little over $1.4 million to buy their new home. They can technically buy with no money out of pocket. To qualify for a cross collateral loan, you’ll need a minimum FICO score of 700 and a minimum debt ratio of 50%. You’ll also need six months’ worth of cash reserves for your loan payment. If you have questions about cross collateral loans or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

In 2020, you can use 100% financing for a VA loan even if the house you’re buying is over the loan limit. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! An important change has been applied to the VA loan in 2020, and today I’m joined by Dave Marzinke of Movement Mortgage to discuss this change and why it benefits you. Previously, you had to come up with a down payment if you were buying a house whose purchase price was over the county loan limit. The down payment was 25% of the difference between the purchase price and the loan limit. Now, you can use 100% financing even if the house you’re buying is over the loan limit. If you have any questions about this topic or need help buying your next property with no money down, call or email me anytime. I’d love to help.

Today I’m giving you the scoop on how the market performed last year and what we can expect as this new year progresses. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! In 2019, we saw a very strong U.S. economy. Trade wars with China, Brexit, and the Trump impeachment dominated headlines. Unemployment reached a 50-year low, and the GDP delivered on high expectations. The interest rate for a 30-year fixed mortgage ranged anywhere from 4.5% to 3.5% and finished at 3.75%. Here in our Orange County market, the active inventory is at about 3,700 homes. That number may sound high, but it’s actually anemic for our market. As the year heats up, we’re anticipating inventory to rise; by summer, we can expect about 7,000 homes on the market. For those selling homes right now, you have no competition, so take advantage of it. On the buyers’ side, there aren't a lot of homes to choose from. Still, if you find something to your liking, be sure to put in a competitive offer—I’m sure the seller will take it. Overall, 2020 will look a lot like 2019, just a tad hotter. We’ll likely see a 3% to 4% growth in demand around the spring and summer. The housing cycle for 2020 will mirror 2019: We’ll start slow in the first quarter, heat up in spring, top out in summer, and cool off come fall. If you’re in the market for a luxury property, now is a fantastic time. Days on market for that bracket is currently between 175 and 275 days, so conditions are prime for striking a good deal. I foresee interest rates remaining about the same in 2020. If our economy continues trending upward, we may even see a slight increase. However, if developments regarding trade wars or Brexit rock the boat, we could see a small decrease to about 3.5% to 3.75%. To any potential buyers on the fence: Lock those rates in, get the house now. Overall, 2020 will look a lot like 2019, just a tad hotter. Buyers need to be patient, as multiple-offer situations will become more common. If you have any questions about what the year ahead holds or if you’re thinking of buying or selling now, please reach out to me. I’m always happy to help.

We want to wish you a very happy holiday season from all of us at First Team Real Estate! Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Happy Holidays to you! We hope you enjoy this wonderful time of year and make some fantastic memories with your family and friends. We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us. This may be a busy time of year, but we are always here to help and answer any questions you may have. Give us a call or send us an email. We would love to help you. In case we don’t hear from you soon, have a happy New Year!

Here are a few choice tips you can use to make your home more energy-efficient this winter. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! Winter is coming! If you want to save money on your heating bill when the cold season strikes in full, here are seven tips to help: 1. Hire a professional to do an energy audit. For between $200 and $600, an energy auditor will come to your home to assess the energy-efficiency of your home and provide a checklist of items you may want to fix before the winter starts in full. I’d be happy to refer you to one we know and trust; otherwise, you can find them on www.Homeadvisor.com.   2. Seal your walls. Your local hardware store should have a variety of caulks you can use to seal off any cracks in your walls that allow warm air to escape and cold air to seep inside. 3. Seal your light fixtures. Those who have recessed lighting might be surprised to learn about how much air can leak in through those fixtures. You can close off any gaps around your light fixtures simply by using electrical tape.   4. Fill in any insulation gaps. Check your attic for gaps in the insulation, as well as around your water faucets; both are prime places for heat to escape if they’re not properly insulated. Those who have recessed lighting might be surprised to learn about how much air can leak in through those fixtures. 5. Check your heating system. Make sure your pilot light is lighting efficiently, change out your filters, and ensure that airflow through the system isn’t being blocked.   6. Insulate your windows. Purchasing double-paned windows will help with the cost and efficiency of heating your home.   7. Purchase a smart thermostat. Smart thermostats help set your home’s temperature when you’re sleeping or when you’re out of the house so that you’re not using too much energy when you don’t need it. Many brands have smartphone applications you can use to automate your thermostat. Nest and Smart Learning Nest are some of the more popular brands. If you have any questions or would like more tips for making your home energy-efficient this winter, don’t hesitate to reach out to me. I’d love to help you.

I want to wish you and your family a happy Thanksgiving! Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! The Thanksgiving holiday is one of my favorite times of the year. I want to wish all of you a happy Thanksgiving! I’m thankful for the people in my life: friends, family, and coworkers. I hope you feel the same! If you are interested, there is an enjoyable event coming up in our area. The 42nd annual Orange County Turkey Trot is extremely entertaining, you can see more information here. Thank you very much for all of your support. I hope you have a safe and cheerful holiday! If you have any questions concerning real estate, please reach out to me by phone or email. I would love to help you.

If you’re thinking of buying an investment property, here are a couple of handy financing options. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out and subscribe to my YouTube channel! I have a client who’s looking to buy a duplex in San Clemente that’s priced slightly under $1 million. If you find yourself in a similar situation, what kind of financing should you use to purchase your property? According to Dave Marzinky of Movement Mortgage, there are two options you should consider. The first is conventional financing. The minimum down payment for this option is 15%. You can then use 75% of the gross rent of the other units to finance the purchase. The minimum FICO score needed for this loan is 620 but, as always, the better your credit score the better your financing terms will be. Since my client’s score is roughly 740, her interest rate will be in the 3% to 4% range. The better your credit score the better your financing terms will be. The second option is an FHA loan, whose minimum down payment amount is 3.5%. In any case, passive income is a great way to build wealth, and with interest rates as low as they are, it’s a great time to buy an investment property. If this is something that interests you, don’t hesitate to reach out to me so I can help you get the ball rolling. As always, if you have any other real estate questions, feel free to reach out to me as well. I’d love to help you.