I was taught that calculating an IRR (Internal Rate of Return) is like making a pizza. You need to know the ingredients and have the right oven and correct baking process.  Understanding how to calculate an IRR will help your clients make a good decision when investing in real estate!  This calculation will help your clients choose investments that make money and avoid investments that don't make money. There are four ingredients when it comes to calculating IRR. (making the pizza)      * 1st is Present Value= What is the initial money spent out of pocket to get this investment      * 2nd is Periodic Cash Flow= How much cash flows in or out of the investment on a periodic basis      * 3rd is the Term = How many periods am I receiving these periodic cash flows for.                       ... 08/04/2008

My Mom drew a distinction between achievement and success.   She said that achievement is knowledge that you have studied and worked hard to do the best that is in you.   Success is being praised by others.  That is nice but not as important or satisfying.    Always aim for achievement and forget about the success. 08/04/2008

Here's a newsletter I provide to my clients who are looking to buy In Santa Clarita, California.  I find its helpful with their decision whether to buy or not, because it gives them an understanding of how mortgage bonds are tied to interest rates and the economy.    "EVERY DAY YOU MAY MAKE PROGRESS." Winston Churchill. And after recent weeks of progressing in a worsening direction, Bonds and home loan rates finally managed to make some progress in the right direction last week, with home loan rates improving by .125% from where they began. The biggest news-maker occurred when President Bush signed into law HR 3221, the "Housing and Economic Recovery Act of 2008," which is a sweeping $300 Billion rescue plan to help struggling homeowners avoid foreclosure, and to boost confidence in the... 08/03/2008

I recently took a short sale listing from a client in the mortgage industry.  This client was impressed with my understanding of the short sale process, my negotiation knowledge and my truthfulness.  What really impressed him was the strategic partnerships I have aligned myself with and that I reinforced the fact that the lender is in control. I also stressed that I could not guarantee a successful transaction and that his home could be foreclosed.  My strategic partnerships include, Tax Attorneys, Bankruptcy Attorneys and my Escrow Officer.   When he asked how much I charge for up front fees. I explained that I don't charge up front fees, however it may or may not be necessary for him to pay for an appraisal and a BPO.  At that point he agreed to hire my wife and I, he also told me tha... 08/03/2008

High home prices, H.R. 3221 doing away with the down payment assistance programs, and concerns over the economy are the major obstacles blocking first time buyers from buying a home.  However, as many as 7 percent of renters plan to jump into the market within the next 12 months to take advantage of current market conditions.  A recent poll conducted by Harris Interactive and reported on Inman News, reported as many as three out of four American believe the housing market has yet to finish its current readjustment, but nearly half think conditions will improve once a new president is elected.  When it comes to choosing a place to live, the poll found the most important factors to be local crime rates (56 percent), proximity to daily conveniences such as stores and services (47 percent),... 08/01/2008

Think about what lands in your mailbox...bank statements, credit card bills, and maybe even DVD's. Where do they all go when you're gone? If you've been asking a nosy neighbor to pick up your mail--or worse, letting your mail pile up in the box--there's a better option and it's easier than ever! Whether you're on vacation or an unexpected business trip, you can rest easy knowing your mail is safe and sound by asking the Post Office to suspend delivery while you're gone. They'll hold your mail from 3 to 30 days, and then resume normal delivery on the date you specify. It's convenient, easy to do, and most of all SAFE! Make It Easier with the Internet Now you can notify the Post Office to hold your mail in two minutes flat without even leaving your house. Just hit this link, and you can q... 08/01/2008

Give this search engine a shot.  Brought to you by RE/MAX of Santa Clarita and the Paris911 Team, this data entry field is coming from the Multiple Listing Service and is offered as We have a couple of RE/MAX sites that we operate.  These sites can be found at a couple of locations.  1.  http://parismacivor.remax.com and 2.  http://connormacivor.remax.com. Either way you will be able to see some other fantastic links to our other options when it comes to our Full Disclosure Process and our Relational Based business model.  We also have a REO list to pass around and would hope that if you are looking for any and all foreclosures, whether in the Santa Clarita Valley or elsewhere - You will give us a call to see when we all can meet and brainstorm your needs.   08/01/2008

CLICK HERE TO SEARCH - SANTA CLARITA FORECLOSURES We've implemented yet another fantastic tool at TheScvAgents.com. Now you can search the most extensive database of Santa Clarita Foreclosures available, in all of California! With this tool, and a bit of help from The Scv Agents Team, you're now going to know every single Santa Clarita Pre-Foreclosure, Santa Clarita Short Sale, Santa Clarita Auction Home, Santa Clarita Bank Owned Property, and Santa Clarita REO on the market. This search tool for Santa Clarita foreclosures in uypdated every day, and is provided by the good folks at Foreclosure Radar. Here is an example of one of the new interfaces you'll be seeing at The Scv Agents Team website, when you want to search for local Santa Clarita foreclosure deals...     Let us know if we c... 07/31/2008

Hello, Thought this would be worth sharing, it comes from a very experienced FHA Mortgage Broker.  Hope this helps. Summary of the "Housing and Economic Recovery Act of 2008"  A. Summary of the "Federal Housing Finance Regulatory Reform Act of 2008 This legislation strengthens and modernizes the regulation of the housing government-sponsored enterprises - Fannie Mae and Freddie Mac (the enterprises) and the Federal Home Loan Banks (FHLBs or Banks) - and expands the housing mission of these GSEs. In addition, it creates a new program at FHA that will help at least 400,000 families save their homes from foreclosure by providing for new FHA loans after lenders take deep discounts. I. Safety and Soundness Regulation of the Housing GSEs   The "Federal Housing Finance Regulatory Reform Act of... 07/31/2008

I received a phone call yesterday (Wednesday), the lady said she had been reading my blog - Thanks Active Rain and Kinetic Knowledge. I asked if I could help her.  She told me that she had spoken with several Real Estate Agents and asked me what I charge to sell a short sale.  I explained that it was not that easy and asked why she wants to do a short sale and if she understands all of the implications.  She had bits and pieces, but for the most part, the agents she had spoken with had been less than informative. They had told her things like her credit would not suffer as much if she did a short sale and not a foreclosures.  They told her that she needed to pay up front fee's to them for thier time, due to short sales not selling and them needing adequate compensation.  She had also be... 07/31/2008

So it is done, I have mixed emotions on this as clearly its us the tax payers who will pay for this. The main parts of this are as follows: A permanent increase in "conforming loan" limits. The law will permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,500 from $417,000.  The Federal housing administrations role. The FHA will be allowed to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the homes' current appraised value.  The FHA maximum loan limits for high-cost areas would also increase to a maximum of $625,500 as well. This is one part of the law that I like this will help bolster the housing market in my o... 07/30/2008

Sales Stats: Active listings in SCV at this time last year: 2,358 Current active listings: 1,735 This means we currently have 27% fewer homes currently on the market as compared with last year. Average Sale Price at this time last year: $551,100 Current average sale price: $458,081 This means our average sales price is down approx. 17% from last year. Average Days On Market of Sold homes last year at this time: 108 Current average days on market: 78 This means the homes that have sold this year have been on the market 30 days less or are selling 28% faster this year. Total Closed Sales this time last year – 1,966 Total Closed Sale Year to Date – 1,543 This means there have been 423 fewer sales this year or 22% fewer sales. 07/30/2008

I'm the Owner/Broker of Vintage Sotheby's International Realty in Valencia, California. We are located approximately 30 miles north of Downtown Los Angeles. More specifically in the Santa Clarita Valley. SCV consist of the communities of Valencia, Saugus, Castaic, Newhall, Stevenson Ranch and Canyon Country. I am told blogging helps drive activity to your web site. I'm not sure exactly how this all works. If somebody has a simple non technical explanation I would really appreciate it. I understand blogging is an opportunity to share your expertise on a particular subject. My expertise is in real estate. I began my real estate career in 1971 as a real estate appraiser. In the early 90's we were experiencing a market very similar to today's real estate market. I decided to get a Real Esta... 07/30/2008

Supply & demand affects every real estate cycle. In an up cycle, demand is greater then supply.  In a down cycle, supply is greater then demand.  At the peak and the bottom, supply and demand briefly achieve equilibrium.  The imbalance cause the shifts in the cycle from up to down and vice-versa. Example: If a year ago 1000 homes were on the market and it took an avergae of ten days to sell a house, six months ago 1500 homes were for sales and on average it took twenty days to sell a home, and now 2500 homes are for sale and the average time to sell a home is forty-five days, you know that supply far outweighs demand.  Either too much building took place, the flow of funds into real estate has stopped, or migration and oversupply are driving down the market and prices. This signals a pe... 07/29/2008

I know there are some out there that have considered selling their homes to either move up, downsize, or even relocate out of state. The question I get several times a day is should I?  Realistically, when you are selling and then buying, there are many factors involved, but for the most part it is a wash.  If you are looking in the same market, example Valencia CA to Valencia CA, Selling in Valencia Ca and Buying in Valencia Ca, then you can bet it will be a wash.  The property you are selling has depreciated as much as the property you are buying.  (other factors to be considered will be additions and improvement's - Pool - Spa - any and all upgrades, is what you are moving into apples to apples?  But you can factor in percentages with reference to what you are buying comparatively wi... 07/29/2008

Below are the current statistics for properties in the Santa Clarita Valley area, including Castaic, Canyon Country, Newhall, Saugus, Stevenson Ranch and Valencia. Current Number of Available (Active) Listings: 1601Average # of Days on Market: 111New Listings taken in July to date: 313 Currently in Escrow: 567 Closed Listings in July to date: 188Average # of Days on Market: 69Average Sales Price/Listing Price: 98%Average Property: 3.4 bedrooms, 2.75 baths, 1872 sq ft, Listed at $429,156 and sold at $421,062 *Information deemed reliable, but not guaranteed. As a Realtor® with Dilbeck GMAC Real Estate, I continuously monitor local real estate statistics to keep my clients informed and ahead of the real estate trends. Please contact me: If you are looking to buy, sell or lease your home in... 07/28/2008

All right, she had me from the front page.  I was looking around for some new and interesting places to go in the place where The Paris911 Team is headquartered.  Also a resource I could link to and send our clients to that would not make their eyes bleed. I have been looking around the www.  Sometime ago, I stumbled upon the SantaClaritaGuide.com site.  It must have been at the beginning of its creation.  Not very functional and some of the features had not been build out yet. It has been some time, but in my searching, I came upon this site once again.  I am pleased to report that it is up and quite functional.  Better yet - It is without any advertisements, via banner or otherwise. So you can search to your hearts content without getting headache's from pop up windows and other thing... 07/28/2008

I am writing this post and laughing.  This is time number three and you would think I would learn and cut and past the content before moving onto posting.  I cannot tell you how many times I have had to rewrite articles just to have the system produce some glitch that moves through during the saving and posting phase.  But I do get more content with each time, Thanks to concentration. I have seen the steady increase of interest rates that affect the consumer from April 3 to present.  About 1/2 a point according to what I have been able to watch via our www.REnews911.com and the mortgage rate watch feature.  You can also get a great deal of news, current trends, and other tips and options when it comes to making good and educated choices with Real Estate.  There are also past newsletters... 07/28/2008

To all who live or are thinking of moving into the Santa Clarita Valley lets unite our community and support this Bill, which I'm sure will safeguard our environment. Here's a bit from the City of Santa Clarita's home page about this Bill.  SUPPORT HR 5887--PREVENTING MINING IN SOLEDAD CANYONFill Out a Support Form and Send it in Today! Your support is critically needed for Congressman Howard "Buck" McKeon's HR 5887, the Soledad Canyon Mine Act that will prevent a large scale mining operation from being sited in Soledad Canyon, just outside our City of Santa Clarita border. As a resident, taking a few minutes to write a letter (View sample letter ) would be very helpful in moving this bill forward. Whether you are an individual (View individual form ), a nonprofit organization, a busine... 07/27/2008

When submitting a Short Sale package to lenders, it is important to follow a stacking order. It is also very important to obtain an accepted offer quickly.  List the property as a short sale, priced according to Fair Market Value.  If you get an offer and its accepted great, if not just submit the Borrower's Authorization & Release, This will buy you some more time to get an offer.  Once you verified the lender has received the Borrower's  A & R and have a purchase contract, submit the short sale package.  This will get process started. *Follow up diligently*  Here's what been working for me.   STACKING ORDER; BORROWER'S FINANCIALS * Client Info page (page 1) * Hardship letter * Financial Statement * Most recent mortgage statement * Copies of last 2 months; pay stubs, bank statements an... 07/27/2008