Monday, October 17, 2011

HomePath -- Only 3% down and no mortgage insurance required!

I wrote earlier about the HomePath program, but it is SUCH a good deal, I want to keep talking about it so you really get how incredible this program is. Here are the HomePath benefits for buyers:

- Only 3% down required on purchases for primary residence
- Only 10% down for purchase of 1-2 unit investment properties
- NO mortgage insurance required
- NO lender appraisal required

Unless you inherit a property, or win the lottery, you just are not going to find a better deal out there.

There are a lot of homes on the market right now, and some of these are really good deals. Combine killer interest rates with the above benefits, and you have a winning situation all day long.

HomePath properties are owned by Fannie Mae as a result of foreclosure, deed in lieu of foreclosure, or forfeiture. You can’t buy these homes directly from Fannie Mae; you need to use a Real Estate Agent.

Contact me to help you purchase through HomePath. Let's make hay while the sun shines.

Geoffrey Gault 408-202-2089

Friday, June 3, 2011

Fixed-rate Mortgage rates fall again!

Fixed-rate mortgages fell again for the seventh consecutive week. This low rate we haven't seen since November of 2010.

Freddie Mac released market data showing the 30-year fixed-rate mortgage averaged 4.55% for the week that just ended – 2 June 2011. This is down from 4.60% one week earlier. Last year at this time, 30-year fixed-rate mortgages were averaging 4.79%.

The 15-year fixed-rate mortgage this week settled at an average of 3.74%. The week before it was 3.78%, and last year at this same time it was 4.20%.

The weekly Freddie Mac market survey comes from data that has been reported by about 125 different lending institutions all around the USA.

The 5-year ARM (fixed rate for the first 5 years, then adjustable after that) averaged 3.41% in the same survey. This was no change from the prior week, but it is down from this same time last year when it averaged 3.94%.

This is good news for buyers, as well as for homeowners. By the way, it is a great time to buy investment property. Call me – 408-202-2089.

Geoffrey Gault

CA DRE lic # 01129916 NMLS # 346758

Wednesday, April 27, 2011

Why Get Pre-qualified for a Home Mortgage?

You get pre-qualified for your mortgage because it's good to know before you go. You should find out how much you can actually spend on your new home purchase before you start your serious shopping expeditions. Look at it this way: If you can afford to shop at Nordstrom's, why shop at J.C. Penny? If your budget calls for shopping at J.C. Penny, you will just get upset if you go to Nordy's only to find items that are out of reach.

And, just so you know, it is not an arduous or long process to get pre-qualified. Your Broker will be able to do this for you. The data doesn't even need to be submitted to a lender for the pre-qual. The only cost is for a credit report, and the whole pre-qual should be able to be done in an hour or less. You will need to provide data to the Broker about your income, assets and debts as part of the pre-qual process. I always give my clients a short list of documentation to bring in with them. That way they don't have to try to remember the data.

Lender guidelines have changed over the past few years, and your Broker will know these changes. Most conventional lenders like to see 20% down right now, but some buyers will qualify for loan programs that require less down payment. Then there is always an FHA loan which can require as little as 3.5% down. And there is a VA loan that veterans can qualify for which requires no money down. Where do you fit in? That is what the Broker can find out for you.

There is no reason you can't start looking at neighborhoods and going to open houses to get an idea of what is currently on the market. But your serious shopping should occur after you have been pre-qualified. Then you can pick the right neighborhood and the right house, and not get heart-broken along the way.

My wife and I have been helping buyers find homes in Santa Clara County for over 20 years. We are experienced Realtors® s well as Loan Agents.

Call me so I can get you pre-qualified to purchase YOUR new home.

My direct number is 408-202-2089.

Geoffrey Gault

The William Jefferies Co

Wednesday, April 13, 2011

Deferring Capital Gains Tax on Real Estate Sales

The IRS wants some of the money from the sale of your investment property. No surprise there. But an investor could be in for a real surprise at the amount of capital gains tax he has to pay. Worst-case scenario is that it can be as high as 40% of the profit. BUT, there is a way to defer paying that tax using section 1031 of the IRS tax code known as a 1031 Exchange.

To qualify for this you have to use the capital gains from the sale of your property to buy another "like-kind" property which is of equal or higher value. The properties that you sell and buy must be business related or an investment property such as a rental. Note that the requirement is not "single-family to single-family" or" duplex to duplex." It is like-kind property; property of the same nature or character, even if they differ in grade or quality.

One of the benefits of this is that the investor can often find a property with better cash-flow, or a property with better equity. Also, he can continue to "buy up" and never have to pay the taxes as long as he owns the property.

Just this month in April, I helped an investor sell his duplex and do a 1031 Exchange into a 14-unit apt building. The new property has great cash flow. It had 2 vacancies when we closed escrow, and we had both units rented to good tenants in about a week. This was an excellent win-win for the investor. His capital gains taxes were deferred, and he rolled into a property with a much higher cash flow which will put discretionary income into his pocket every month.

If you are interested in selling your current investment property in order to "buy up" into a property with higher equity or better cash flow, please call me so we can discuss how to make this happen for you.

If you are ready to jump into real estate investment, I can help you find the right property for you.

There are some really good deals in the market right now. Get in now while interest rates are low.

Please call me directly at 408-202-2089.

Geoffrey Gault, San Jose Realtor (R) 408-202-2089 direct
CA DRE # 01129916 NMLS# 346758

Friday, March 4, 2011

San Jose Foreclosure & Short Sale Activity

Wow! I just checked the numbers on San Jose foreclosures vs San Jose short sales. Here is what I have found in some of the different areas of the South Bay. The following refers ONLY to single-family residences.

San Jose:
98 bank-owned properties & 438 short sales by owner

0 bank-owned properties & 17 short sales by owner

2 bank-owned properties & 1 short sale by owner

8 bank-owned properties & 14 short sales

Santa Clara:
4 bank-owned properties & 27 short sales by owner

Mountain View:
0 bank-owned properties & 3 short sales

Los Gatos:
0 bank-owned properties & 4 short sales

Looks like short sales are the winners. Now is the time to invest in Real Estate in the San Jose area. There are great investment opportunities out there for long term, or for short-term fix and flip. I have years of personal experience in real estate sales, purchases and investments. And I am also an expert in fix and flip, something I really enjoy doing. Let me help you get started in real estate investing. Or if you are a veteran real estate investor, let's add to your portfolio. Call me today at 408-202-2089. Geoffrey Gault Investor Relations Manager Automated Mortgage Investment 408-573-0711 San Jose, CA CA DRE # 01129916 NMLS# 346758

Tuesday, February 15, 2011

Buy San Jose Investment Property with only 10% Down!

Yes, there is a god after all. It used to be you had to put down 25% if you wanted to buy a home that you planned to rent out. Now Fannie Mae has a program that allows investors to purchase selected Fannie Mae owned homes for only 10% down! These homes include single-family homes, condos and town houses which were acquired by Fannie Mae through forfeiture, foreclosure or deed in lieu of foreclosure. If you don't have a large down payment, here is your chance to get into real estate investing in San Jose !

Each property is sold "AS-Is" so you need to be aware that repairs may be needed to the property. By the way, if you intend to live in the property, you can get in with as little as 3% down for primary residences as well as 2nd homes. You might ask why is this different from an FHA loan with 3% down? The answer is, no MI. That's right, no mortgage insurance. No appraisal required either. But, the property must be designated as a property within this specific program.

If you are interested in checking out these properties to purchase for primary residence, investment property or 2nd home, please contact me directly: Geoffrey Gault 408-202-2089

San Jose, CA CA DRE # 01129916 NMLS# 346758

Thursday, January 27, 2011

Private Money Lending for Fix and Flip

It’s actually a pretty exciting time for San Jose real estate investors. If you are looking to buy and hold, rates are still very low, and there are some really good deals out there to be had. Distressed and undervalued properties can be found in many areas of San Jose (and surrounding cities) which can be
purchased for long-term investing, or for short-term fix and flip.

Successful short-term real estate investors depend on a quick turn-around of their fix and flip properties so they can get started on the next project. They want to get in and out in the least amount of time with the least amount of hassles. The faster they can fix and flip, the more profit they can turn in a unit of time.

Conventional long-term loans are mainly structured for the buyer who is going to own his home for several years. The bank wants the buyer to hold onto the property long term so that the bank can collect interest for many years. That is how the lender makes his money.

Conventional loans look cheaper, but they require excessive paperwork and take longer to close (in part due to new regulations) thus costing the investor time and money. And, not only does the borrower have to qualify for the loan, so does the property. If both don’t qualify, there goes the deal. Bottom line is that buying a distressed property, a foreclosed property or a short sale property using a conventional loan could take months, if the deal is approved at all. Conventional loans are just not “fix and flip friendly.”

However, private money loans are easier to qualify for, are much faster to close, and don’t usually come with a prepayment penalty. Additionally, private money investors can be more flexible when it comes to structuring the loan. Conventional lenders might not let you take out a loan against existing property you own to fund your new purchase, whereas this is done all day long by private money investors.

In the current San Jose real estate market where you find distressed homeowners who are in a hurry to sell, or you find undervalued property that could turn a nice profit easily and quickly, you DON’T want to be waiting for weeks for loan approval.

I have been obtaining conventional loans and private money loans for my clients for years, and I have built up a pool of private investors who have money to lend. We may be able to structure a private money loan that fits your financial needs.

Call me to discuss your project. I would like to help you with your purchase and your financing.

Geoffrey Gault 408-202-2089 direct
Investor Relations Manager
Automated Mortgage Investment 408-573-0711
San Jose, CA CA DRE # 01129916 NMLS# 346758