Would you read an e-book on "How to Buy Real Estate?"

At a family holiday dinner, a writing sample of mine from long ago was passed around as it detailed my family's history and lineage, sparking a number of interesting conversations.

After everyone had been able to get their two cents in about their holiday dinners, my aunt suggested I begin writing as everyone appreciated my writing style. Since the two things I know the most about are real estate and football, and there are already a lot of well established writers about football, I thought it might be interesting to give this a try.

Would you, specifically as someone who already goes online to find out information about buying a home, want to purchase such a book? How long should it be? What would you want covered? What might you pay (if anything) for such a book? How important would interactivity with the author be (i.e. the ability to ask for clarification or elaboration in real time)? Would you see the benefit of this as opposed to the various blog sites available?

All thoughts and criticism are appreciated.

Client Satisfaction

In many businesses, customer service matters very little. WalMart, Taco Bell, McDonald's, and other corporate business models operate on volume and market presence, with customer service being somewhat of an afterthought.

After all, if you want cheap items or food, you'll probably happen to pass by one of those before anything else that could sway you pops into your head. Having that much market share is great for these companies, but not as great for your experience as a customer, because what it really means is that your experience there doesn't have to exceed expectations, it just has to meet them.

Where customer service and client satisfaction DO come into play is when NOBODY has a firm hold on the market. By definition, real estate agents, as much as some like to think they do, will never have the type of grip on a market that the aforementioned corporate giants do. There are far too many individual, personal and emotional factors in this decision, and the decisions are made far too infrequently. I've yet to meet the person that thinks as much about their Realtor as they do about where they are going to get their next meal.

So what it really comes down to are a number of questions that all relate to client satisfaction. What was the experience like? Does it now trigger mainly positive or negative emotions? Would you want a friend or relative to have a similar experience? Do you trust this person with as large of a decision as purchasing a house can be?

For these reasons, there is nothing more rewarding to a Realtor than being recognized for their ability to satisfy clients. So, with the disclaimer that I do not know whom was polled or how big the sample size was, I was recognized with the award that appears in the top left of this page, and I have found that I am quite satisfied myself.

Full circle.

Postponed (No Reason)

I've become a more avid follower of Trustee Sale action, for a couple of reasons. First, because I am looking to secure a transactional financing source, and second because I have a particular client that wants to buy a particular property, that has been scheduled for auction for the last 3 months or so.

What I've come across is a seemingly never-ending sequence of postponements, the timing and predictability of which are uncanny, and usually a reason is stated such as "Beneficiary's Request", "Bankruptcy", etc.

For the first time this morning, I literally saw "No Reason" given as the reason for the postponement. While I thought this as honest as this process had ever been, it made me curious. Why would a lender/servicer delay a FC for "no reason"? I know that a lot of things are counter-intuitive, but usually they are at least in the best interest of the institution holding the bag.

I'm not usually at a loss for where to take pro-active steps on the disposition of a property. When you have an agreed upon short sale where the lender out of nowhere decides to increase the approval price, that generally means they want to foreclose. Ok, fine, we'll try to buy it either at Trustee Sale or as an REO. However, when the LENDER then uses a number of stall tactics to delay the FC, I'm really confused.

Anyone out there experience something similar or have any advice on where to go here?

Top 4 Reasons Not to Screw with the Mortgage Interest Deduction

As you may have heard during a quick snippet on NPR or from your favorite partisan talking head, the Commission on Fiscal Responsibility and Reform recently published its final report, including a proposal to limit the mortgage interest deduction. Obviously the MBA and NAR Lobby are in full-fledged damage control mode, which of course amounts to precisely the type of "partisan" rhetoric you would expect from such groups, but I thought I'd offer some information with a bit more cogency and concrete reasons as to why this is a particularly awful idea. Here goes:

1) Banks

There is very little liquidity in mortgage markets, and this is mainly due to the faucets of lending being turned off in favor of saving capital for a rainy day. The alarming drop in mortgage applications as of late means buyers are already lacking confidence in proceeding with their transactions. Limit one of the main reasons why home ownership is beneficial (the MID), and you will limit transactions in the part of the market (over $500K) that still has the farthest to fall. This is also the part of the market where lenders make the most money. So if the goal is to get lenders on their feet and lending again, capping the MID @ $500K is a bit like cutting their legs out from under them, and then saying they can only lend with one ARM (hopefully the negatively amortizing one) tied behind their back.

2) CPA's & Financial Planner's

While most W-2 borrowers file a fairly simple return, the business owners of the world have long been known to play with their tax returns until they are advantageous as possible. This is, of course, best done with the help of a professional. Salaried employees usually make the transition into utilizing a professional (if they haven't already) after they've purchased a home, because far more things need to now be taken into account. One of those things is properly accounting and planning for the MID. If that is eliminated, it's one less reason to use a professional, which in turn hurts small business, and makes me want to think of a pun almost as poor as the one used in the previous paragraph. Again, hurtful, and not helpful to our overall economy.

3) China

Currently, due to the fact that Chinese RE is over-priced and ours, by at least some metrics and forecasts from major universities is considered under-priced, foreigners are picking up as much US RE as possible. These are usually investors or at the very least non-citizens who would not be able to utilize the MID anyway, so they would not see its limitation as an aggravating factor in their decision to purchase RE. 75% of domestic buyers on the other hand, according to a recent Harris poll, find the MID to be "extremely or very important". If China owns our long term debt and our real estate... let's just say that's not good and leave the rest of it to our individual interpretations and/or expletives.

4) Home Prices

Well sure, this is the most obvious one that of course the MBA and NAR lobby have already beat to a pulp, but it's worth mentioning here. Beyond the obvious supply/demand issue, there is another issue that is perhaps more subtle but equally important. If a current homeowner loses their mortgage interest deduction over the $500K limit and is maxed out at their current limit $1.1M (for an owner occupied property), there is a $600K delta which they used to be able to deduct which they now cannot. What this may lead to, in our world of over-leveraged homeowners and rampant consumer debt, is even more foreclousres, as the lack of a tax credit could make the difference for some homeowners between surviving and sending their lender "jingle mail". The last thing our economy needs now is more foreclosures, but capping the MID would certainly be another contributing factor.

The Greater Newport Beach Area

If you are new to Newport Beach it can seem a bit overwhelming. I though it would be a good idea to break down the different areas of Newport Beach.

Here are the 7 different areas:
1) Corona Del Mar - Spyglass Area
2) Newport Heights
3) West Bay - Santa Ana Heights
4) West Newport - Lido Isle
5) Lower Newport Bay - Balboa Island
6) Balboa Peninsula
7) East Bluff - Harbor View

1) Corona Del Mar is a quaint area located in the city limits of Newport Beach and is located on the other side of the bay from Balboa island and between Newport Coast drive and Jamboree Road with homes on both sides of Pacific Coast Highway. Corona Del Mar has some of the most breathtaking views of the Pacific Ocean and home to many multi million dollar houses for sale. Here you will find homes from all architectural styles nested close to each other with close proximity to the ocean. All of the streets in Corona Del Mar are named after flowers and is home to wonderful galleries and unique shops line the streets.

2) Newport Heights is a great area located just east of the Pacific Coast Highway (PCH) and north of Newport Bay and accross the bay from Lido Island and West Newport. Here you will find homes with great views of the Newport Bay, the Pacific Ocean & Catalina Island. Condos in Newport Heights, for example, start in the mid $400,000 range, which will be a starting price point for this area. It's not uncommon to also find 5 million dollar mansions In Newport Heights as well. Newport Heights is most well known for "Kings Road" where the most expensive real estate can be found.

3) West Bay- Santa Ana Heights area is located north of Upper Newport Bay and south of the 55 freeway. It is in close proximity to the John Wayne airport in Orange County and the back bay. West Bay Newport Beach homes in this area is sometimes referred to as the "Upper Newport Bay" area. The West Bay - Santa Ana Heights is one of the most affordable areas in Newport Beach with close proximity to the 5 & 55 freeway. Homes in this part of Newport Beach starts around $600,000 up to multi-million dollar homes. Dover Shores is a popular community in the upper bay area, due to its boating community and lots with main channel and bay frontage.

4) West Newport- Lido Isle is probably one of the best kept secrets in Newport Beach and home to the most exclusive homes for sale in Newport Beach. Lido Isle is an island that is in the middle of Newport Bay that is home to multi-million dollars homes with a homeowners association with community clubhouse and tennis courts. It's an ideal location the Newport Bay surrounding it with the city of Newport Beach and Balboa Peninsula on each side of it with great views from homes located on Via Lido Soud and Via Lido Nord streets. This exclusive area In Newport Beach has numerous bay front and bay close homes. It's within walking distance to quaint shops and stores of the Balboa peninsula which is home to great restaurants and quaint boutiques. The homes can be right on the water and have stunning views of the bay. Home prices tend to high in this area and go up as high as $11,000,000.

5) Lower Newport Bay- homes located in the Newport Bay across from Lido Isle and west of Pacific Coast Highway. These include the exlcusive comminuties of Harbor Island and Linda Isle. Bay Front homes here have great views of the Newport Bay and Lower Newport Bay is home to many multi-million dollar beach homes.

6) Balboa Peninsula - This is the premier beach & real estate location in Newport Beach. The Balboa Peninsula, which is also called the "Peninsula" is home to some of the most beautiful beaches in Southern California. The homes facing the ocean and the bay are some of the most desirable homes on the Balboa Peninsula. Here you will also find a quaint downtown area and plenty of places to shop. The most exclusive area of the Peninsula is the the Balboa Peninsula Point, which can have homes up to $20 Million. The Peninsula is also home to the "Wedge" surfbreak which has legendary high surf sand break. If you get a chance to come to this area make sure you visit the "West Jetty View" park to watch the boats come out of the bay to the Pacific Ocean.

7) East Bluff- Harbor View - East Bluff in Newport Beach covers a large portion of Newport Beach with over 45 different neighborhoods. The majority of them are great family neighborhoods where you see a lot of children, and of course, great schools. Homes tend to be a little larger here and the location is excellent with it's close proximity to Corona Del Mar and Fashion Island Shopping Center. East Bluff is a great place to find a home just over $1 million dollars and prices can go up to $27 million in neighborhoods like Big Canyon. Additionally, One Ford Road and Bonita Canyon are luxury gated communities that feature homes with great curb appeal and great community parks. Architecturally, there is nice mixture of Traditonal, Spanish, Mediterranean and Contemporary homes.

Hope that helps, and come visit me anytime!

-Jake

One Year Anniversary

As of this past weekend, I have officially lived on the Balboa Peninsula for one year. A lot of people have misconceptions about what the lifestyle, cost of living, and etc. amount to in a place like the Balboa Peninsula, so I thought I would provide a case study.

With the disclaimer that my living scenario may not be typical, I don't think it is so much of a stretch that other such scenarios would be impossible to find. In any event- here is the breakdown of my fixed annual costs:

Living Expense: $865/mo
Utility Bills: $80-85/mo
Total Annual Fixed Expenses: $11047.95

Obviously, this doesn't include any meal, entertainment, vehicle, insurance, phone or gas bill spending, but those vary wildly amongst people and are not correlated highly enough with geographical location for me to divulge the details of my finances, but it should give you a baseline of what is needed to live here. So that is the price.

But what is the value? Well... that gets me a 2 bedroom in the lower half of a duplex, 50 yards from the boardwalk, two blocks south of the main cluster of eating and entertainment venues on the Peninsula. I can walk to just about anything I need, and am generally surrounded by like minded individuals, although I will say that the tourist crowd from June-September can get a bit annoying at times. But its nothing that can't be cured by a run on the boardwalk with the ocean breeze giving you the energy to keep going. I can walk or bike to a number of different harbors, to hop on a sailboat or yacht with my more aquatic-minded friends. And lastly, there is no shortage of hole in the wall eateries that only residents would know about, and I am discovering new ones all the time.

So if you care to find out more about this place, whether you're thinking about renting or buying, I'd be happy to share my knowledge. Get in touch with me however you see fit, and we'll chat.

-Jake

Email: jkucheck@gmail.com
Twitter: http://twitter.com/OCPro
Facebook: http://www.facebook.com/#!/ocpro

Welcome to a Little Slice of Heaven

Welcome to July in Newport Beach! Bet you weren't expecting rain...

I thought I would take this opportunity where no one wants to go look at houses to remind you why you want to live here. Even if you don't, you might be curious about this place where silly people pay up to $1800/SF for their homes.

So what is the Balboa Peninsula, exactly? Well for those looking for comprehensiveness, feel free to click here: http://en.wikipedia.org/wiki/Balboa_Peninsula,_Newport_Beach,_California

However, briefly, the Balboa Peninsula is at once an amalgamation of college life, wild riches and decadence, and resignation to a humble beach lifestyle. It is a place of beauty, and a haven for debauchery. Rarely and in few locations can the prudence of wealth and the irresponsibility of youth be so vividly juxtaposed. Choosing your location wisely (or having a Realtor who can help you) can make the difference between serene bliss at the beach and seriously bothersome neighbors.

This juxtaposition is reflected in not only its residents, but also the cost of living. While a 5 Bedroom duplex will run you roughly $2.5 Million, renting the bottom half of one will cost you under $1,700/month. I'm speaking from experience on one of those, and I will let you guess which one ;)

More comprehensively, there are currently 73 active listings on the Peninsula, running from $499K for a 2 Bedroom attached condo of a modest 681 Sq Ft to a $15 Million behemoth with 8 bedrooms, 11 baths, and ocean views galore. As with anywhere, the lower end of the market moves faster, as the 10 homes in escrow on the Peninsula are all under $4 Million.

Seasonal rentals must also be considered. Oceanfronts generally carry a 4X multiplier, meaning that a given unit that rents for $3,000/mo will generally rent for $3,000/week during the prime months (June-Sept).

If you've made it this far, you clearly find this as interesting a place as I do, so feel free to check back. I will be updating the Peninsula listing activity weekly, with other posts of interest whenever I can find the time.

- The OC Pro