The Collected Works of Author and Blogger Larry Roberts

Archive for January, 2010

realtors don't stop finding reasons to buy until buyers have enough. It doesn't matter if the reasons are good or bad, they just needs to be plausible and salable. Today, I want to explore why realtors are responsible for the rubbish they promote. I want to start by saying that there are many good Realtors (deserving of a capital "R"), and they are as dismayed about the practices in their profession as I am. I have the utmost respect for the character of Randy Rector, broker of record for Evergreen Realty, and many other Realtors and brokers have approached me and told me they share many of my frustrations. I am painting bad realtors with a broad brush, and I…[READ MORE]

Why Trustee Sales? Most buy at Trustee Sales to make or save money. When compared to resale properties, Trustee Sales are generally discounted between 10% and 20% and sometimes the discounts are even greater. The first post in this series featured a property being flipped for a 25% gain, a significant profit for taking risks and trapping cash for a few months. However, flipping for profit is not the only reason to consider this market. My disdain for flippers is apparent, but my ire is not spread evenly. Flippers who buy at auction provide necessary liquidity in a market isolated from lender financing, and flippers who renovate properties (even with pergraniteel) add tangible value; however, the flippers who annoy me…[READ MORE]

To start, I recommend Foreclosure Radar's excellent series on foreclosure: Types of Foreclosure, Non-Judicial Foreclosure Process and California Foreclosure Laws. Judicial or Non-Judicial Foreclosure Foreclosure proceedings in most states are either Judicial or Non-Judicial at lender's discretion. Unlike mortgages, Trust Deeds give the lender the Power of Sale at public auction if the borrower fails to repay the debt. With a Trust Deed, a lender can exercise this right without a court order using the faster and less-expensive non-judicial foreclosure. The lender may sue the borrower for repayment of property debt in a judicial foreclosure and obtain a Deficiency Judgment which they can record as a blanket lien against all borrower property in a given jurisdiction. Lenders often will pursue…[READ MORE]

Ownership is primal. The first two words children learn in any language are "no" and "mine." People have an deep intuition of what is theirs and what is not. Emotionally, It's Mine defines ownership; in the real world, it is not so black and white. When people own real estate, what they really "own" is a bundle of property rights. What rights are the bundle, and how are these rights held? Today, I want to take a step back and review real estate law and outline property rights and vesting title. As I recently took the excellent Broker's review course from Real Estate Trainers, much of the legalese comes from their study manual. Who or what is an Owner? The…[READ MORE]

Californian's believe house prices go up by magic. Real estate appreciation is religion in California as people blindly accept the Truth of never-ending price increases. Few question current prices or wonder why current pricesgo up as most fool themselves with wishful thinking, cockeyed optimism, and kool aid intoxication. Most people do not understand real estate prices -- they think they do -- every Californian is an expert on real estate, after all, we have about half a million realtors, but few people really understand markets. Motivated by greed, blinded by ignorance and enabled by lenders, borrowers inflated The Great Housing Bubble. A foundational understanding of house prices and housing markets is critical. From 2003 onward, with exception of those who…[READ MORE]

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