Kevin Smith Real Estate Podcast

As a buyer, you’re allowed to hold title in a trust, but you’ll need to provide your lender with certain documents. 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! A client of mine is in the middle of a home purchase and he wants to put the property in a trust. If you ever find yourself in a similar situation, can you hold title in a trust? Today I’m joined by Dave Marzinke of Movement Mortgage to answer this question. You definitely can, but there are a few documents you’ll need to provide to your lender. The first is a copy of the revocable trust. The second is a trust certification of attorney opinion letter. The latter is an outside document that certifies how the trust is set up, who’s a part of it, and how it’s recorded. Also, the certification has to be notarized. You can provide these documents after the offer is accepted if need be. If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Is selling this fall a good idea? Actually yes, and today I’ll explain why. 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! If you’ve thought about listing this fall but aren’t sure whether it’s a good time to do so, then I’ve got some good news. Not only is buyer demand strong right now, but inventory is low, as well. This translates to lower competition (and the potential for a higher sales price) for those who do choose to list.   If these reasons weren’t enough, many buyers are also eager to find their next home before the holidays arrive. This sense of urgency only serves to further your leverage as a seller. Today’s low inventory translates to lower competition (and the potential for a higher sales price) for those who do choose to list. Those looking to upgrade their living situation by moving into a larger property (or one in a higher price point) are also at a particular advantage right now, as appreciation rates have jumped up by 5.2% this past year. Of course, financial factors aren’t the only reasons you might want to make a move. Personal developments can be an equally strong incentive to sell. Whether it’s a marriage, a new job, the birth of a child, or anything else, selling your current home so that you can transition into another often comes along with these major life changes. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What can reverse mortgages be used for? Finance expert and reverse mortgage specialist Kevin Kaltenbach joined us recently to explain. 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’ve brought on finance expert Kevin Kaltenbach to discuss an important topic: reverse mortgages. As it happens, Kevin is a reverse mortgage specialist, so you’ll definitely want to hear his thoughts. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure: 0:05 - Introducing today’s topic: reverse mortgage options 0:52 - Kevin shares his advice for a client of mine who is considering a reverse mortgage 1:56 - How to refinance a home using a reverse mortgage 2:24 - Kevin dispels a few common misconceptions about reverse mortgages 4:19 - How to purchase a home using a reverse mortgage 6:44 - A few closing words If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Many of my clients are looking for investment properties, so today I’ll provide you all some tips about how to be a successful investor. 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! Since many of my clients are looking to become real estate investors, today I thought I’d share a few tips regarding what it takes to be successful if you make the decision to invest. 1. Know what it means to get a good deal. It’s not just about getting the right price; some people see a property with a low price and think of it as a great way to make money. Besides negotiating a good deal on price, you should also look at whether that property is located in an appreciating area. A good investment property is one located where there are jobs available, there’s a good rental market, and where the economy, in general, is on an incline. 2. Have an exit strategy. Just like with stock, when you’re going into a real estate investment, you want to buy low and sell high. If you intend to hold onto the property for one year, your plan should be different from one in which you plan to hold the property for, say, 20 years. Having a plan before you make the investment will help you think about important things such as whether the property will provide you with monthly cash flow or whether it will appreciate over longer periods of time. Your exit strategy will make sure that you’re buying the correct property per your goals. A good investment property is one located where there are jobs available, there’s a good rental market, and where the economy, in general, is on an incline. 3. Have cash in reserves. If you’re doing a long-term investment, consider whether your property is a cash flow property and whether you will have enough cash to allow you to make improvements to it. Be sure to have a reserve of cash on hand so that you can handle any unexpected costs or make any necessary repairs or improvements to keep your tenants happy and your investment stable. If you have any questions or comments about investing in real estate, please feel free to reach out to us. We look forward to hearing from you!

Relocation buyers must take a few extra steps when moving from one state (or one country) to the next, and this message will cover just a few of the most important. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out my YouTube channel here! Whenever a client relocates in or out of their current state, the real estate process can seem especially daunting. Thankfully, my team and I have got the resources and the connections to make your move from state to state go smoothly. Take the example of my most recent client: a recent retiree who wanted to move somewhere with plenty of lakes and places to fish. While I’m tackling the sale of his current home here in Southern California, I’ve delegated the task of finding his next home to an agent I know in the area he’s searching. I leveraged my network to refer him to someone I knew would do a great job in helping him buy. This story is great, but it’s just one of many. If you need to move out of state, I’d love to serve as your resource for referrals. On that note, I can also refer you to high-quality professional movers. After all, getting yourself from one home to the next is one thing, but moving all of your belongings is a whole different ball game. Also, if you happen to have pets, it’s important to keep them in mind as you plan your move. This will be especially critical if you’re moving from, say, Hawaii, because there’s a high likelihood that your pets will be temporarily quarantined upon arrival. The key is doing your research beforehand so that you know exactly what to expect. If you need to move out of state, I’d love to serve as your resource for referrals. Speaking of research, out-of-state buyers must be aware of how the closing process varies between states, so be sure to work closely with a local Realtor as you navigate these all-important steps. But what if your move isn’t just to somewhere out of state? What if you’re moving out of the country, instead? Obviously, buyers in this scenario will need to fulfill various legal requirements, like obtaining a Visa or other immigration-related documentation, in addition to the usual steps of the moving process. Last (but absolutely not least) on the list of things relocation buyers must consider is childcare and education. Transitions like these can be a lot to handle for children, so if you’re moving as a family, don’t forget to research the relevant resources available in your new area. In short, a lot goes into moving from one state (or one country) to another. This kind of move can be quite complex, so having professional help will be a must. If you have any other questions, would like more information about this topic, or are curious about how I can help you with your next move, feel free to get in touch with me or my team. We look forward to hearing from you soon.

For any buyer, the home inspection is a vital part of the purchase process. Here are the five points to understand and follow as you progress through it. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation  Check out my YouTube channel here! Any buyer in search of a home should be aware of how the inspection process will unfold when the time comes to make a purchase: Here are five key points. 1. Get a home inspection. It’s not enough to find just any old inspector—you’ll want to get one that’s certified. I have a list of long-established, certified inspectors I use that have kept up with state exams and who have made sure they operate with the latest standards. 2. Make sure the inspector is checking off all items on the evaluation. There are hundreds of items in this report and they go way beyond just matters of cosmetics—behind-the-scenes items such as the plumbing, electrical, AC units, etc., will be included as well. The inspection could take between two to four hours, but you’ll want to be present. This is your opportunity to ask questions and to make sure all the boxes have been ticked off the list in both the interior and exterior of the home. The final walk-through is your chance to make sure that the house’s present condition is no different than how it was when you entered escrow. 3. Ask questions and ensure the specifics are covered. Above all else, you need the inspection to be clear and concise, leaving no room for ambiguity. The report will usually be compiled within 24 hours, and your real estate professional will go over the highlights of the inspection with you to make a judgment on what items need to be addressed, if any. 4. Negotiate items in need of repair with the seller. Who’s going to be fixing those items? The seller may pay for the repairs, they may agree to a credit, or you may forgo making a request from the seller altogether. Safety issues such as fire alarms and detectors should be addressed before closing. Remember: Because the inspector can’t subsequently be held liable, anything that isn’t identified during the initial inspection becomes your responsibility to deal with. 5. Do one last walk-through with your Realtor. This is your chance to make sure that the house’s present condition is no different than how it was when you entered escrow.   If you have any questions about today’s topic or anything else real estate-related, please reach out to me by call or text at 619-379-7664 or by email at [email protected]. We look forward to hearing from you!

To get a good sense of where our market is headed in 2019, I’ve made a slideshow presentation with all the latest numbers and trends. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation What’s in store for buyers and sellers for the rest of 2019? In the video above, I’ve provided a comprehensive slideshow presentation with all the most important numbers to answer that question. For your convenience, I’ve also provided timestamps of the presentation so you can skip ahead to the section(s) that interest you the most: 2019 Economic Forecast 0:35 - The two things Realtors have been praying for 0:45 - Why our economy is our biggest strength 1:05 - Employment numbers and consumer confidence figures 1:18 - Inflation remains low  1:21 - The numbers from our 2018 financial markets 1:33 - Interest rate fluctuations and their impact on affordability 2:17 - Projected home price appreciation moving forward in 2019 2:29 - The difference in net worth between renters and homeowners aged 65+ The California Housing Market 2:45 - Sales numbers and our rate of price growth from August 2017 to August 2018 3:06 - The peak price months of SoCal counties compared to August 2018 3:22 - Our growing rate of inventory 3:37 - Sales vs. active listings growth in different price ranges 3:41 - The average days on market from 2005 to 2018 3:45 - The number of listings with price reductions from 2010 to 2018 3:48 - Affordability for repeat buyers and first-time buyers 3:56 - Our share of international buyers  4:04 - The average length of time homeowners are owning homes 4:16 - The percentage of homeowners who choose renovating instead of buying 4:25 - The percentage of sellers moving out of California and where they’re moving to Our 2019 Market Forecast 4:50 - U.S. economic outlook 5:12 - California housing market outlook As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Here’s why you shouldn’t be afraid of a market crash. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Here are the four reasons why you shouldn’t fear a market crash: 1. The economy is getting better. During the market crash of 2008, we found most homes were overleveraged, there was uncertainty in the market, and discounts were causing some neighborhoods to lower too far in price. There were 541,000 foreclosures. Now, we only have 216,000 foreclosures nationally—this may sound like a lot, but foreclosures are unavoidable, and we’ve more than halved the number. 2. Most homeowners now have equity. During the crash, people were taking out enormous amounts of equity for refinancing. In 2000, we only had $26 billion worth of refinances, but the crash saw over $321 billion worth. As of the third quarter of 2018, we only have about $38 billion. People are being more wary of refinancing and banks are having stricter policies. These factors have greatly lowered the chances of experiencing a market crash. 3. Lending standards have changed. Since the crash, banks and the government have put tighter restrictions on how lending is to be done. NINJA loans (no income, no job or assets) have been pretty much eliminated. 4. Affordability has improved. Between 1985 and 2000, the monthly mortgage payment percentage was at 21%. In 2006, it hit 25.4%. Now, it’s at 17.5%. These factors have greatly lowered the chances of experiencing a market crash anytime in the near future. If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.

Fortunately for our economy, homeowners aren’t still using their equity as their own personal ATM. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Are people still using the equity in their homes as their own personal ATM? Back in 2006, the total amount of equity people were taking out of their home and using as a cash advance was $326 billion. Nowadays, though, the numbers show that people are more careful with how much equity they take out of their home and what they use that equity for. This trend shows how much better our economy has gotten and why we won’t see a repeat of the 2007/2008 market crash. Nationally, 48% of all homes have replenished 50% of their equity, and we currently only have about $70 billion that’s being used as cash refinancing. That’s a huge improvement—not only compared to 2006, but also compared to 2007 when the total was $240 billion. Instead of purchasing RVs and paying for vacations, people are focusing on making home improvements. This trend shows how much better our economy has gotten and why we won’t see a repeat of the 2007/2008 market crash. If you have any more questions about the state of our current market or you have any real estate needs I can help you with, don’t hesitate to reach out to me. I look forward to speaking to you.

Today we’ll cover a few pros and cons of purchasing a condo in Southern California. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation If you’re considering buying a condo, you should be aware of the pros and cons of doing so before you make your final decision. One of the greatest benefits of buying a condo in Southern California is that it affords buyers the chance to live in locations where a single-family home would be astronomically expensive. A condo is a great alternative to a single-family home if you want to live within walking distance to certain amenities. Another benefit of condo living is the security it provides. Condos are usually gated and include a parking structure, meaning residents have a level of protection not always available to people who live in single-family homes. And speaking of practical benefits, living in a condo also means that many maintenance tasks are taken care of for you. Condo residents don’t need to worry about mowing their lawn or cleaning the pool. These things, as well as certain utilities, are covered under the monthly condo fee that residents pay. These fees, which are split up between all the building’s units, also gives residents access to various amenities. The fact that fees are split up could be viewed as a drawback, but only if you’re living in a condo with a low number of residents. Condos are a great alternative to a single-family home if you want to live within walking distance to certain amenities. But what about financing? The lending process for condo purchases has historically been a point of concern for buyers, but, recently, condo financing has been made much easier than in the past. There are currently three main loan options for condos: conventional, FHA, and VA. Conventional and FHA loans both offer lower down payment options, but FHA loans do carry a higher level of restrictions. Even so, many of these restrictions have been made more lenient in the recent past. The best way to know which loan type is best for you is to discuss your individual circumstances with your lender. Ultimately, the decision of whether or not to purchase a condo will depend heavily on your lifestyle and goals. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.