Sky's Gorgeous New Listing in Hip Highland Park - 5656 Aldama st. 90042

5656 Aldama st. is my new Preferred Realty and Loan listing in the hot LA neighborhood that everybody seems to ask me about, Highland Park. Highland Park is a hilly and historic area in Northeast Los Angeles (NELA to the locals) just North of Downtown LA. "HLP" runs along the Arroyo Seco and 110 freeway and has many beautiful views of Downtown and the San Gabriel Mountains from its palm tree lined streets. HLP is on the upswing and is gentrifying quickly just like Silver Lake did 10 years ago as artists, musicians and creative types flock to the lush valleys and hillsides. New restauraunts are opening on York Blvd each month and the Highland Park Art Walk is getting bigger all time. In the last couple of years Highland Park has blossomed into a hip, fun and stylish neighborhood. It is very centrally located on the East Side of Los Angeles, no more than 10 minutes from Downtown LA, Pasadena, Glendale, Burbank, Silver Lake or Echo Park. There is a Metro Stop to allow train access all over the city and there are three freeways nearby making it a short trip to anywhere. Prices in this neighborhood are lower than neighboring South Pasadena and Eagle Rock but home prices in the zip code 90042 is steadily increasing as more and more people discover the area and move in.

Location of 5656 Aldama in Highland Park, Los Angeles CA 90042.

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My listing at 5656 Aldama is situated essentially in the middle of Highland Park nearby both the York Blvd. and Figueroa Blvd. commercial areas. This historcal home has been painstakingly renovated and brought back to life as a stylish oasis. The grounds of the home are very lush, with tall mature trees all around. This is a "Green" house in every sense of the word.  In the front yard are drought tolerant succulents on top of xeriscaping to be very water conscious. Giant old bamboo trees line the North side of the property and provide shade and privacy with an Asian flair.

5656 Aldama st. Front View

Standing on the driveway 

Open the vintage 20th century front door to find the entry area bathed in warm light from the beautiful antique lighting fixture.

Step inside the home and take in the open floorplan. From the entryway you can see the living room, dining room throgh the kitchen all the way back into the laundry area.  The living area is large and inviting and presents an excellent venue for entertaining.

Original Craftsman Box Beams in the Living Room provide classic architectural appeal. Recessed lights and a custom vintage lighting fixture illuminate the eco-friendly carbonized bamboo flooring throughout the house.

 

The Dining Room features a truly one of a kind chandelier. Bar stools so we can belly up to the kitchen counter.

Sleek modern kitchen with concrete countertops and stainless steel appliances. Open floor plan to it's highest and best use.

Behind the Kitchen is an exit to the outside and behind double doors is a full laundry room. 

Going into the Hallway between Kitchen/Master Bedroom/First Bathroom and Second Bedroom

Same Hallway looking the other direction from the Master Bedroom

The Hallway Bathroom

Bedroom #1. TONS of natural light pours in through the dual payne energy efficient windows.

Bedroom #2

Master Bedroom

French Doors lead to the back yard.

His and Hers Closets in the Master Bedroom

The Master Bathroom has Bead Board walls and features a gorgeous claw foot bath tub. 

Carrera Subway Tile Floor in the Master Bathroom

The Back Yard

Door into the Laundry Room+Kitchen area

Driveway leading to two covered parking spots and at least 3 other parking spots. 5656 Aldama has ample parking.

5656 Aldama st. Los Angeles (Highland Park) CA 90042 is 3 bedrooms 2 bathrooms with 1272 square feet sitting on a 4000 square foot lot. The owners renovated everything and did the work with permits. The property is listed for $439,000. FHA buyers welcomed.

For more information or to schedule a showing contact Sky Minor at 310-709-8283

List of Fannie Mae Foreclosures available in the SGV/Foothill area

CALL ME AT 310-709-8283 TO GET INSIDE THESE PROPERTIES. ALL ARE FORECLOSURES ALL ARE UNDER MARKET VALUE ALL ARE AVAILABLE UNLESS OTHERWISE NOTED. ACT QUICKLY THE AVERAGE FANNIE MAE LISTING IS GETTING 19 OFFERS IN THE MONTH OF APRIL!
-Sky Minor

610 E. Ladera Street
Pasadena 91104
REO #L10080G
456
In ESCROW (Listed 031810: $349,900)


1859 Lundy Avenue
Pasadena 91104
REO # US BANK
NDY
In ESCROW $275,500 (040410)
3/2, fireplace, 1112 sq ft/9324 lot, detach gar/carport, updted kitchen

736 N. Garfield Av 102 Pasadena 91104
REO# L090XV9
JLS
In ESCROW $269,900 (031710) 3/2.5, 2 stry, 1136 sq ft, in-unit laundry, subter pkng, HOA: $197

292 W. Claremont St. Pasadena 91103
US BANK
SUPRA/
ONT
In ESCROW $248,000 (040210)



276 Pepper Avenue Pasadena 91103
REO #L100B4R
456
In ESCROW $229,900 (040810)



540 N. Orange Grove Pasadena 91103
REO #L1009DC
AMN (dial)
VACANT (Internal listed $529,900) 2/1.5, 961 sq ft townhouse, fireplace, in-unit laundry, attchd garage
286 N Madison Ave 106 Pasadena 91101
REO #L100K97

OCCUPIED, in eviction,DBO
1/1, 973 sq ft, 2 stry condo, subter pkng, central air, BBQ patio

272 N. Mar Vista #13 Pasadena 91106 REO #L100BXB

OCCUPIED, in eviction, DBO
3/3, 1421 sq ft, 2 stry townhouse, fireplace, central air, patio/balcony, community spa
1738 Corson Street Pasadena 91106
REO #L100GLL
SUPRA/SSE
$419,900 (04/16/10)
3/1, 1160 sq ft, 7649 lot, updated kitchen, fireplace, large backyard, detached garage
2259 El Sereno Ave. Altadena 91001
REO #L100BXY

OCCUPIED, eviction, DBO
3/2, 952 sq ft, 7998 lot, fireplace, detached garage, bonus room attached to garage, large bckyard
2962 El Nido Drive Altadena 91001
REO #L1009QX

OCCUPIED, eviction, DBO
3/2, 1376 sq ft, 7626 lot


5921 Mesa Street Los Angeles 90042
REO #L0913SG
AMN
ESCROW(Listed 030110: $364,900)


1591-93 Yosemite Dr Los Angeles 90041
REO #L0913CC
SUPRA/AMN 456 padlock
$499,000 (05/03/10)
Duplex, front unit 1/1, rear unit 3/2, 1679 total sq ft, 7013 lot, 2 garages, vacant, rent control
5049 San Rafael Ave Los Angeles 90042
REO# L090YH7

OCCUPIED, eviction, DBO
3/1, 998 sq ft, 4802 lot, carport


117 S. Avenue 60
Los Angeles 90042
REO #L10041N
AMN/
456 padlock
In ESCROW $255,875 (030410)



4830 San Marcos Pl.
Los Angeles 90042
REO #L1004HS
SMN
In ESCROW $299,900 (030110)



5775 Aldama Street
Los Angeles 90042
REO #L100HGX
SUPRA/
AMN
In ESCROW $259,900 (042010) duplex
each 1/1, 1021 total sq ft, 2265 lot, detached garage

420 James Street
Los Angeles 90065
REO #L100H1W
SUPRA/AMN
$279,900 (05/03/10)
2/2, est. 750 sq ft, 3400 lot, attached garages below living space
rooftop view
1935 Alpha Rd. #337 Glendale 91208
REO #L100J8F

OCCUPIED,DBO eviction Gate code 3031
1/1, 689 sq ft condo, community pool/spa, gated entry/drive, central air






2905 Montrose Av 517 Glendale 91214
REO #L100BVC
456
VACANT , being repaired.
1/1, with loft, 1136 sq ft condo, HOA: $229, subter pkgn

324 Thompson Ave. Glendale 91201
REO #L100L7H

2 units are OCCUPIED,DBO
3 units, front house 3/1 with central air, 2 rear units are 1/1, 1 detached garage, large backyard 1837 total sq ft, 8477 lot
355 N. Maple St. #235 Burbank 91505
REO #L100CKR
SSE
$279,900 (040810)
1 (loft)/1.5, 690 sq ft condo, community spa, fitness center, BBQ, across from Warner Studios
557 E. San Jose Av #8 Burbank 91501
REO #L100CBQ
456
VACANT, being repaired
2/3, 1125 sq ft, 2 stry condo, central air, in unit laundry, subter pkng
11503 Tiara Street No.Hollywood 91601
REO# L090VDS
SSE (gold)/ AMN
In ESCROW, $241,900
2/1, 798 sq ft, 3518 lot, bonus room attached to rear bedroom

10140 Hillhaven Ave. Tujunga 91042
REO #L100M2D

3 units OCCUPIED, 2 moving out, front unit will stay, DBO
4 units, each 2/1, 3038 sq ft, 10890 lot

10015 Silverton Ave. Tujunga CA 91042
REO #L100DBG

OCCUPIED, eviction,DBO
2/1, 676 sq ft, 9491 lot, bonus room

6943 Greeley Street Tujunga 91042
REO# L100BZB

ESCROW/OCCUPIED-tenant purchase
Multi-units

777 S. Citrus Ave. 167 Azusa 91702
REO #L100BHK
SUPRA/
SSE
In ESCROW $279,900 (040810)



832 S. Briargate Lane Glendora 91740
REO #L100JDF
AMN
VACANT, being repaired
3/2, 1230 sq ft, 6344 lot, corner lot, pool, covered patio, fireplace, remodeled kitchen, 2 car dtchd gar
587 Camino de Gloria
Walnut 91789
REO #L090DX3
SMN
$299,000 (reduced 042610)
3/1, 1088 sq ft, 8781 lot, needs work, large backyard

1315 S. Gladys Ave. San Gabriel, 91776
REO #L100LZD


OCCUPIED eviction, DBO 1 bedroom, jack&jill bath, flag lot in back in nice neighborhood.
1330 S.Mayflower (L)
Monrovia 91016
REO #L0911CK
SUPRA/ AMN
In ESCROW $319,000 (reduced 040610)
2/2.5, 2 stry condo, end unit, in-unit laundry, 2 car atchd gar, balcony

Checklist for increasing your houses' curb appeal.

When I was starting out in the business a great real estate agent once told me that houses are bought or sold as soon as the car door slams shut. Now that I'm getting up there in number of closed escrows, I can see that she was right. "Curb Appeal" is the term to describe that magic feeling that people get when they first set eyes on a property. It's not always a quantifiable thing, more of a "vibe", a feeling. Curb Appeal is the most valuable thing any home seller can have. Here's a basic checklist of things that I have noticed contribute to Curb Appeal that can be done for free to any home being marketed for sale.

Sky's Curb Appeal Checklist (abridged)-


Inspect the outside ground. Remove any building materials, scrap wood, discarded household items, etc. from the property. Store garbage cans in the garage. Remove weeds from the sidewalk.

Check the home from the roof line down.
- Is the roof free and clear from obstructions and moss?
- Are the gutters clear and neatly hung?
- Are the windows clean and free from obstructions (such as overgrown bushes or trees)?
- Are bushes, trees and shrubs neatly pruned?

Inspect the condition of the paint or siding?
- Is it time to power wash the siding?
- Is touch up paint needed?
- Is the front door in good shape?

Do flower beds need an upgrade?
- Are plants neatly pruned?
- Is the bed free and clear of weeds?
- Is the bed properly mulched?
- Are flowers in bloom? For $50, one can purchase many wildflower seeds that will cover much more ground than the same dollar amount of plants.

Keep the lawn neatly groomed.
- Is the lawn free from weeds?
- Is the lawn free from grass clippings?
- Is the lawn neatly edged?

With just a little bit of elbow grease, home owners can make their home prettier. The bottom line is that clean, well kept houses have more curb appeal. If you want to sell the house make sure it looks more like this: Than this:

Houses in Detroit for $1. Yes, $1.

This house was sold for one dollar. Driving through Detroit neighborhoods is an empty shell of the once vibrant metropolis once clogged with the cars that made the city the envy of America and there are homes to be had for a single dollar.

You find these houses among boarded-up, burnt-out and rotting buildings lining deserted streets, places where the population is shrinking so fast entire blocks are being demolished to make way for urban farms.

Houses on sale for a few dollars are something of an urban legend in the US on the back of the mortgage crisis that drove millions of people from their homes. But in Detroit it is no myth.

One in five houses now stand empty in the city that launched the automobile age, forged America’s middle-class and blessed the world with Motown.

Detroit has been in decline for decades; its falling population is now well below a million – half of its 1950 peak. But the recent mortgage crisis and the fall of the big car makers into bankruptcy has pushed the town into a realm unique among big cities in America.

A third of the population are unemployed. Property prices have fallen 80% or more in large parts of Detroit over the last three years. The average price of a home sold in the city last year has been put at $7,500 (£4,900).

The recent financial crash forced wholesale foreclosures among people unable to pay their mortgages or who walked away from houses that fell to a fraction of the value of the loans they had taken out on them.

Banks are selling off properties in the worst neighbourhoods, which are usually surrounded by empty and wrecked housing, for a few dollars each. But even better houses can be had at a fraction of their former value.

Local contractor/investor Jim Feltner and his workers were clearing out a property seized by a bank. “I used to be a building contractor. I was buying up places and doing them up. Now I empty out foreclosures. I do one or two of these a day all over the city,” he said. “I’ve been in Detroit 40 years and I’ve watched the peak up to $100,000 for houses that right now aren’t worth more than $20,000 tops. I own a bunch of properties. I have 10 rentals and I can’t get nothing for them, and they’re beautiful homes.”

Feltner’s workers are dragging clothes, boots and furniture out of the bedrooms and living room, and dumping them in the front yard until a skip arrives. Kicked to one side is a box of 1970s Motown records. A teddy bear lies spreadeagled on the floor.

“You could get about five grand for this place,” said Feltner. “Nice house once you clean it out. All the plumbing and electricals are in it. Roof don’t leak.”

It’s a story replicated across Detroit.

Joan Wilson, an estate agent in the north-west of the city, whose firm is offering a three-bedroom house on Albany street for $1, says that more than half of the houses she sells are foreclosures in the tens of thousands of dollars. “The vast majority of people that call to enquire, almost the first thing out of their mouth is that they want to buy a foreclosure. I have had telephone calls from people looking online that live, for example, in England or California, who’ve never set foot in the area. They’re calling about one specific house they see online. I tell them they need to look at the neighbourhood. Is it the only house standing within a mile?”

But what is blight to some is proving an opportunity to remake parts of the city for others living there. The Old Redford part of Detroit has suffered its share of desolation. The police station, high school and community centre are closed. Yet the area is being revitalised, led by John George, a resident who began by boarding up an abandoned house used by drug dealers 21 years ago and who now heads the community group Blight Busters. They are pulling down housing that cannot be saved and creating community gardens with fresh vegetables free for anyone to pick.

“There’s longstanding nuisance houses, been around seven, eight, nine years. We will go in without a permit and demolish them without permission,” said George. “If you, as an owner, are going to leave something like that to fester in my neighbourhood, obviously you either don’t care or aren’t in a position to take responsibility for your property, so we’re going to take care of it for you.” Blight Busters has torn down more than 200 houses, including recently an entire block of abandoned housing in Old Redford. “We need to right-size this community, which means removing whole blocks, and building farms, larger gardens, putting in windmills. We want to downsize – right-size – Detroit,” George said.

Houses that can be rescued are done up with grants from foundations.

“Detroit has some of the nicest housing stock in the country. Brick, marble, hardwood floors, leaded glass. These houses were built for kings,” George added. “We gave a $90,000 house to a lady who was living in a car. She had four children. It didn’t cost her a dime. We had over a thousand people apply for it. It’s probably worth $35,000 now.”

Old Redford is seeing piecemeal renewal. One abandoned block of shops has been converted to an arts centre and music venue with cafes. One of the few remaining cinemas in Detroit – and one that’s among the last in the US with an original pipe organ – has been revived and is showing Breakfast at Tiffany’s.

Brumit calculates that he has spent $1,500 to buy and do up his house, principally by scavenging demolition sites. He will move in with his wife and four-month-old child once it is complete, probably in the summer.

He said: “The Americans we know got ripped off by the American dream. But [the renovation] is the most like moving out of the country that we can actually do. We’re the minority in terms of ethnicity and this is a rich environment … there’s 30% open space in the city and that doesn’t include the buildings that should be torn down. You’re in a city riding your bike around and you hear birds and stuff. It’s incredible.”

Sky drums in Bali

Bali, Singapore2 061
Originally uploaded by skyminor

I hopped on the drums with an awesome Balinese cover band and jammed Enter Sandman by Metallica.

Buying a house step by step, pt 1.

After reciting the same monologue for nearly a dozen times this year, I realized that standardizing it online would be a great teaching tool. First Time home buyers or people who haven't bought in a while are always curious as to the process of buying Real Estate. I deal in California-Los Angeles in Particular, but the process is fairly universal around the country. Here is an outline of the homebuying sequence in order from start to finish.

1. Secure Financing.
-Get preapproval from lender within 60 days. Have the down payment ready and don't leave your job or apply for credit from anywhere until your loan is closed. You'll get a good faith estimate (GFE) from the lender for closing costs so you'll know what the bottom line to bring in will be. Budget for Title and Escrow fees if it is not included in the lender's GFE. Typical buyer's closing costs are between 2-3% of the purchase price so make sure you have that amount in addition to your down payment. Don't move money around, keep it in one place until you close. If you have to move any money keep the paper trail because the lender will need to account for every dollar.

2. Find the property, write your offer, get it accepted.
-Finding the Property is the fun part. Your agent should be showing you many properties, and you should be learning from each one. If something feels right to you, it usually is. Once you begin to write offers there are many things to be aware of in the fine print. These details can mean thousands of dollars coming from your pocket at closing so understand clearly everything you are offering to the seller. Some details I see: Transfer Tax, unpaid assessments, Mello-Roos taxes, Termite repairs, smoke detectors and on and on. Once the contract is accepted then it is taken verbatim by everyone involved so make sure you are OK with what you are putting on it. Ask your agent what the protocol and customary fees are for the items that you are including, they will know and advise you. This is why they are getting paid.

It is impossible to know everything about the property when you are writing offers on it, so don't worry too much about uncertainties in the beginning. As knowledgeable as your agent is, they won't be able to tell you absolutely everything about the property's maintenance history, neighborhood information (especially ethnic or racial makeup-by law) etc. The successful buyer needs to be able to act quickly with limited information. The best properties never stay on the market long in Los Angeles, despite economic or market conditions. The early bird gets the worm with real estate so don't get "analysis paralysis" as Rich Dad calls it. If you know the property is right for you, write the offer. You have plenty of time after writing it to change your mind, so put pen to paper now. Once it is accepted you will have an inspection contingency period and a financing contingency period usually 17 days. If you find something that you do not like, or are unable to obtain the mortgage that you said you would get on the offer, you can pull out no harm no foul. The chances are, you won't get your first offer accepted anyway. I did not have one single buyer in 2009 who got the first place they wrote an offer on. One of them is on his 12th offer. Buyers cannot be afraid to write offers, but with that being said they should be careful to dot the I's and cross the T's with every offer.

After the offer goes in, the seller will most likely counter-offer and request concessions. Higher price, shorter escrow, less closing costs etc. This negotiation is natural and should be approached with patience and serenity. Don't be flustered by aggressive counter offers, deal with them knowing that you are making progress. Too many times first time buyers bury their head in the sand at the first counter offer, probably because they feel intimidated not having negotiated much in their lives. That's perfectly acceptable, but I don't think any buyer should give in too easily to the sellers' demands. Many times the seller's agent will create inuendos about other buyers circling the property ready to pounce like well-funded lions, but in most cases it is a bluffing tactic. Keep a cool head and act rationally. This is another area where your agent has to earn their keep. They will be able to guide you, and should be heeded. After the dust settles and a counter offer is signed by both buyer and seller, notify the mortgage lender immediately and send them what they need right away to start underwriting the mortgage. It is important that the buyers do not make any large life changes once an offer is submitted. Don't change jobs, don't move money around, don't buy anything aside from everyday items, don't apply for credit and don't let anyone run your credit report for any reason.

3.Open Escrow, put down deposit money.
-Escrow is a neutral third party licensed by the state to carry out the contract. They ensure first that the seller doesn't take the buyer's money and the buyer doesn't take the seller's property. They ensure that all taxes get paid, all liens and any claims against the property get paid, every expense is accounted for and prorated up to the day the buyer takes title to the home. All money gets sent into escrow and sent out by escrow. The buyer will have to send in their earnest money deposit to escrow at this point. That is usually done with wire transfer or cashiers check. Escrows rarely accept personal checks. Wire transfer is easiest but it usually costs $30 each time. Escrow will send you out a small pile of paperwork to fill out. That paperwork needs to be returned to them as soon as possible. The buyer will need to determine their vesting, need to give background information and other questions. If your agent is not available, calling the escrow company for questions is perfectly acceptable.

Once escrow is opened, the clock starts ticking with the buyer's agreed upon Inspection and Loan contingency periods. Every day counts, so buyer's need to be ready to respond quickly to the requests of the lender, agent or escrow company. Email is the best way to send paperwork back and forth because it's possible to pull up what was sent and received by everyone involved. Make sure you keep or get copies of everything that you sign and keep it for your records.

4. Get a property inspection.
Getting an inspection is currently not mandatory in CA but it should be. I require all Preferred Realty and Loan buyers to get an inspection, even on new houses because you never know what you'll find. Inspectors are licensed and bonded professionals and hold insurance policies in case they miss anything in their inspection report. They never do. The agent will be able to recommend an inspector to you. They cost from $250-$450 on most houses and condos and are usually paid by buyer. If possible, go out and meet the inspector at the property when he's inspecting and ask questions. Inspector are typically contractors and they all know what to look for. They will provide you a large report outlining everything that is notable in the house. When you get that report, don't feel too broken hearted when problems are disclosed. Most houses have problems with them, especially in LA where most houses are 50+ years old. Things to pay attention to in inspection reports are: -Foundations, especially on hillsides. Foundation ideally should be bolted to the piers (wood beams). Foundation problems are seen in cracks that go from ceiling to ceiling or floor. In hillside houses, it is natural for the soil to move 1/10" per year. Keep that in mind.
-Any leaking water in roof or pipes. Water entry is the biggest problem in houses. Even in the desert climate that Southern California water is still an issue, and anywhere that has water should be examined for dryrot. Mold is a frequent accomplice of water leaks, and should be examined (although there are hundreds of different strains of mold, only a couple of which people are allergic to.)Mold can pose a problem for potential landlords. Also look for water coming off the roof and not flowing alongside the structure.
-Old elecrical systems, if there are air conditioner units or other large power draws. An updated 220v electrical box on a 1500 sq ft 3+2 house will cost 3-4 thousand dollars. Look at the breaker panel. If you see cloth wires going to a fragmented, unlabeled center then it's probably going to need to be updated.

There are more issues to discuss when seeing home inspection reports, but this blog is only so big. When you get it back, look at the report closely and ask questions about everything that is unsatisfying. The requests for repair will be based on this inspection report, and that is a fun time for buyers.

That is the conclusion of the first chapter of "Buying a house, step by step". Stay tuned for the second installment of this series. For a personal discussion, contact Sky Minor.

Is America finally coming down from it's decades-long materialistic binge?

I have always thought that Americans are simply crazy about consuming. As a country, we buy so much crap that we don't need. I have been rallying about this for decades but no one really paid attention until the last two years and our collective national belt-tightening began. Now it seems my country has a ray of hope! We are finally saving our money again! Granted we'll still have a long way to go until we reach Japanese levels of personal saving but at least it's not a negative rate any more!!! This paragraph is from a mortgage broker blog that I read for my home buyers and it makes me smile.

Are big price cuts "artificially" bumping up Retail Sales? Studies have shown that consumers are shopping at second-hand stores in growing numbers, cutting back on luxuries and putting money in the bank - resulting in the highest saving rate in 16 years. We appear to be putting off visits to the doctor, not grooming our pets, choosing store brands over big-name brands and turning to do-it-yourself manicures and pedicures. And we are shedding the things we've accumulated over the years: garage-sale listings on Craigslist shot up 60% in the last year, either because we're less materialistic or we need the money.

Hopefully option A! I tell everyone who asks me if they can buy that they'll need at least $20000 for a down payment and closing costs and it's shocking to see who has that amount and who does not. This goes into "Millionaire Next Door" Territory, so I'll save that for another blog. In conclusion, it's good to see us pinching pennies like everyone else in the world has to do!

How business is done in Illinois.

Speaking of contractors, three of them are bidding to fix a broken fence at the Governor's Mansion in Springfield. One is from the capitol city of Springfield, another from the small town of Petersburg, and the third from Chicago.
They go with an official from the Governor's staff to examine the fence.
The Springfield contractor takes out a tape measure and does some measuring, then works some figures with a pencil. "Well", he says, "I figure the job will run about $900: that's $400 for materials, $400 for my crew and $100 profit for me."
The Petersburg contractor also does some measuring and figuring, then says, "I can do this job for $700: that's $300 for materials, $300 for my crew and $100 profit for me."
The Chicago contractor doesn't measure or figure, but leans over to the Governor's young staff member and whispers, "$2,700."
The inexperienced official says, "Hey, you didn't even measure like the other guys! How did you come up with such a high figure?"
The Chicago contractor whispers back, "That's $1000 for me, $1000 for you, and we hire the dumb guy from Petersburg to fix the fence."
"Done!" replies the youngster.
And that is how business is done in Illinois.

Fascinating take on why defaulting homeowners don't really OWE the money on their mortgage.

I found this very interesting writing out in the blogosphere. It is written by an attorney who has several good points about mortgages and who truly owes who.

His contention is that you don't owe your mortgage. Basically, the entity who gave you the loan was paid back when they sold it to a servicer and that servicer was paid back when they sold it to a mortgage backed securities pool. That pool of MBS's was paid back for their losses from the federal government bailout and all of our tax dollars. That debt has been paid. These lenders who are foreclosing are essentially being paid twice for the original mortgage money they lent out. They are a crafty bunch and they've already gotten us to this point, why should we let them go further?

Auto-industry bailout aptly described by Calvin and Hobbes.

Leave it to Bill Watterson, the clairvoyant author of Calvin and Hobbes to adequately summarize our latest capitaliscum-socialist atrocity. When I see this, I laugh but I am also disheartened and saddened because it is true and the U.S. taxpayers are footing the bill for the $15 lemonade (or in this case, trillion dollar bailouts funding heinous CEO bonuses).

This is the darkest time for capitalism in history. How can we rebuild this system and restore trust in the "Great American Way? I for one vote that we move to completely ban any employee bonus for all companies receiving federal monies until the full amount of the government contribution has been paid back to the U.S. Treasury.

Time and time again, we have seen that the privileged few are unable to control their greed and corruption and if left unchecked ultimately plunder everything before moving on. Think of every European revolution/uprising.

Why aren't the average citizens of this country taking to the streets in protest?

Fannie and Freddie's announcement to modify loans and it's effect on pricing.

Here we are, deep into the slough of the deepest real estate downturn in my generation's history and today Fannie Mae and Freddie Mac announce that they are going to be modifying loans based on the borrower's true ability to repay them. My phone starts ringing off the hook with enthusiastic folks on the brink of foreclosure (that's about 80% of the country by my reckoning) wanting to know my educated opinion of the matter. After I thank them for their flattery, I calmly delve into my grounded in reality pragmatic discourse.

"We've heard this before" says I. "First from the individual lenders, then the county of L.A., then the state of California, then the Bush administration that helped all this to happen, and now the biggest holders of mortgage paper in the universe." My caller is always speechless at this point, so I steamroll forward. "None of their interventions has made so much as a dent in the evil behemoth of foreclosures that is sweeping across our formerly great nation." Still no speech from the other end of the line. What did they expect? Good news? This is foreclosure we are talking about, the depth and breadth so deep that it literally bankrupted the world financial system. Sometimes I will offer my opinion. "I think this is electioneering/PR for the giants to give the public hope and distract them while they manuver behind the scenes and continue to rape this country. Thanks George." At this point, they are usually deflated. I'm sorry to do it but I don't see enough tangible action taken on the street level, house by house, block by block, to give me any cause to believe that we are going to get out of our foreclosure nightmare.

So what will this do with prices? Well, it will likely stabilize them in the short term because foreclosures will be abated...temporarily. The underlying problem is that hordes of people bought houses they will never be able to afford and until values and subsequent loan amounts are reduced to a level that is sustainable to someone making the median income for LA county, about $40000 or $2500 a month after taxes. According to the proposed modifications, mortgage payments will be pegged at 38% of monthly net income. 38% of $2500 is $950 including property tax and insurance that number is closer to $700 a month. At 7% interest a $700 payment affords about $120000 of mortgage. Therefore, that's what the median price will be adjusted to in LA county. According to current data, our median price is $370000 so we're still more than 300% above the federally mandated "workout" guidelines. We've still got a long way down.

How to lose money and internet ranking.

I am nothing if not honest. I am quick to point out the mistakes I've made along the way in the hopes of my people being able to avoid the same mistakes. This one ranks pretty high up there on the mistake-o-meter.

I am browsing and assessing the latest attacks by my online nemesis Carlos. This is a guy who I invested $125000 with into a bar in West Hollywood. He completely ripped me and several others off. I don't take that sitting down. I looked all over for him then when I couldn't find this slippery 5'3" scammer, I began posting warnings about him and his wife Nayda online. After about two days he started calling me and at first demanding and threatening me if I didn't take my posts down, then he began pleading. I said sure I'll take them down as soon as you pay me at least a fraction of the six figures I gave you that you skated off with. No payment was ever made, but he began posting things about me all over the interwebs under fake names accusing me of being fraudulent, shady, etc. If's that not the pot calling the kettle black I don't what what is. So now my Google ranking for sky minor tycoon, sky minor real estate, sky minor mortgage, etc returns several bogus rip off reports posted from "David", "Sam", "Rachel", etc. claiming amongst other things, that I'm a heroin junky, I am being investigated by the FBI/CIA/Secret Police/Music Critics for poor taste in pets and haircuts and "bad" loans. These fraudulent reports go further claming that I had brokered out loans that led to foreclosure (In Malibu, of all places. I wish I had done a loan in Malibu!) and a plethora of other 8th grade nonsense. I can't remove them, as the site rip-off report has a policy of never taking down bad reviews, be they contrived or not so all I can do is answer every single bogus complaint that Carlos throws at me from whatever city he is ripping people off in and appeal to the sense of the reader. Sigh. Tough lesson to learn. From what I can gather of the lesson so far it would be to don't deal with short people who you suspect are lying (your instinct is probably right), don't deal with people who claim to get "action on the side" cheating on their wives, and if you are not a good judge of character then you'd be better off leaving your money in a CD earning 3.75%. At least we can get something positive out of the ordeal.

Andrew Jackson speaks from 1832 on what is happening in 2008!

Andrew Jackson, the seventh president of the United States, said in 1832:

"Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out."


Jackson objected to the existence of a bank that had a powerful voice in national affairs yet was not responsive to the will of the people. He contended that the bank benefited only the creditor, investor, and speculator at the expense of the working and agrarian classes that produced the real wealth of the nation by their labor. The financial procedures of the commercial or moneyed class, he said, created a boom-and-bust economic cycle. When the economy was booming, the creditor was rewarded with a large financial return on his investments. When depression came, credit became scarce. Workers and farmers, who were usually debtors, had no money to pay their debts and went bankrupt. Their lands and properties were then seized by their creditors. Thus, wealth became concentrated in the hands of a few. With wealth came power and the opportunity to reinforce this beneficial position by law.
The election of 1832 was a landmark in American history because the candidates were chosen by party conventions for the first time. The Jacksonians chose Martin Van Buren to run for vice president with Jackson. The history of the Democratic Party is traced from this convention. The supporters of the bank called themselves the National Republicans. The election was centered on the bank issue, and Jackson won a second term easily. He had 219 electoral votes to Clay’s 49.

The Short Sale Myth-Reality Realty.

Hello all, this is my initial Real Estate Blog and I want to take the opportunity to thank you for reading. For anyone who doesn't know me, I am a hyper-energetic realtor based in Eagle Rock and selling all over North L.A. and the San Gabriel Valley. I am also a mortgage lender and I spend a good chunk of my time working with a non-profit organization called Operation HOPE, where I help people get out of foreclosure and save houses. I'd love to put you on my list of satisfied buyers, just give me a call at 310-709-8283.

The first topic I'll dive into is the myth of short sales. Those are properties where the sales price won’t be enough to repay the existing loan and closing costs, so the bank has to agree to take less than they are owed to make the deal work. For example, Joe Homeowner owes $650000 on his house that is being "short-sold" for $500000 so the bank is writing off $150000. After working in foreclosure avoidance for what seems like forever, and also working the other side with buyers who are trying to get into short sale properties, I have come to the conclusion that 99% of short sales will NEVER go through. Why? The bank will almost never agree to take less! They don’t care that they may make less eventually when they have to sell it as a foreclosure. They want to make an example of irresponsible sellers and make them suffer for getting themselves into such a financial pickle. If you are such a seller and need to sell, you had better be in real financial trouble-at LEAST six months behind or your short sale will not be approved. That means you can’t have any other assets, or if you do, you have to give them to the bank. They’ll transfer what you owe to another property, or they’ll take a promissory note if you don’t own any other real estate. And you almost always have to already be in default on your loan, so your credit is trashed regardless. One property that we had an offer on, Flagstar bank was demanding that the seller sign a non-dischargable (meaning bankruptcy-proof) note for not only the deficiency in the purchase price, but also all the missed payments up to that point! That short sale, like all the others, did not go through and the seller is still occupying the property.

There are many reasons why the myth of the short sale gets bargain hunting buyers foaming at the mouth. Most of them stem from the fact that most people don’t understand how they work and they advertise their property as a short sale at a very low price with no idea whether they qualify for one. To further the myth, many Realtors take them on with the same ignorance. The blind leading the blind.

So, you the prospective buyer say, what’s the harm in looking at short sales? Here’s the problem: you are wasting your time. Not just by looking at unlikely properties, but what if you fall in love and make an offer? What if it’s actually accepted—pending lender approval, of course? Then you waste even more time waiting weeks, even months to find, 95% of the time, that the lender turned the deal down and foreclosed on the property yesterday. Not only is that really frustrating, but you have a huge loss in missed opportunities. That cute little foreclosure on the next street that sold in a day. That regular sale that sold in multiple offers last week. Oh, yes, and even though the paper says that the prices are dropping, now that you’re back in the market it seems like anything that’s any good is $20,000 higher than you thought you were going to pay with the short sale.

If you’re a savvy buyer, how can you take advantage of some of the really great deals that do appear, like legitimate REOs? First, can you pay cash? Or do you have such a large down payment that your loan can be under $417,000? You are in good shape. If you already own a home that you have to sell in order to buy another, you need to put it on the market and sell it for whatever you can and be willing to rent until you find the deal you want. It’s not that difficult, there are lots of rentals out there right now. And when you’re ready, don’t be confused by the short sales you see on the market. Just ignore them and look at the homes that you have some chance of actually purchasing. If your existing agent is showing you short sales and writing offers that seem too good to be true that never get accepted you are wasting your time. I'll take you out and show you some quality properties that are actually for sale. Perhaps I will call my company "Reality Realty".