Southern CA Real Estate Myths

There are an abundance of preconceived notions when it comes to real estate, much of it based on inaccurate information. Relying on inaccurate information is dangerous in real estate. Do not fall for these Southern CA real estate myths.

Pricing Does Not Matter in a Hot Market

Everybody wants maximum value. You hear from everyone that houses are receiving greater than the asking price, so you start your house on the high side anticipating an even better final price. Pricing too high may be a huge mistake. Other homes might have sold for higher than asking price given their starting price was competitive. You should not expect that you will receive similar results no matter what number you choose.

You Receive Back the Full Cost of Money Spent on Property Repairs

This is a very common misconception. Unfortunately, the cost of home repairs is not usually recovered when a home is sold. Even though repairs do increase the value of your property, the amount depends on the type and quality of work. Baths and kitchens, for instance, tend to provide better returns than other rooms.

It Is Better to Offer a Concession Than Make Repairs Ahead of Time

Whether you have damaged carpeting or have painting that must be completed, extending a closing concession is not automatically the best approach. Some items influence buyer opinions. This may influence people to offer less. Necessary repairs will often lead to reduced sale prices on top of the concession offered.

The Only Thing That Matters is Location

Every town has that fabulous location that all buyers want to buy in. Homebuyers pay a premium price and believe that it must be a sound investment. The most desirable neighborhoods are not always good investments since prices could be near the max. Therefore, there may be less opportunity for appreciation. In many cases, the moderately popular communities result in better returns.

Selling Without an Agent Will Definitely Improve Your Net

Selling on your own may save on paying broker commissions, but it will not necessarily lead to a higher final figure. Real estate professionals understand the market and know how to best present your listing. Without that knowledge, you will likely overprice, waste valuable marketing time, or reach fewer buyers. All of this may produce a decreased selling price, perhaps even lower than what you are saving on commission. There might also be other pricy errors that you can make along the way without the assistance of an experienced professional.

Staying Away from Southern CA Real Estate Myths

A home is one of the largest investments that you will make. When buying or selling homes, it is critical that you are educated and make informed decisions. Refer to real facts instead of the Southern CA real estate myths. Work with knowledgeable real estate professionals to help you in the steps. This will allow you sell your property quicker, for more value, and with fewer issues.

Typical Missteps With Southern CA House Renovation Jobs

House renovation jobs, big or small, can be surprisingly complicated. TV shows make things seem so simple that you may not fully realize what is needed to complete your project. Whether you DIY or hire a contractor, below are a few typical missteps with Southern CA house renovation jobs to remember with your next project.

Improper Prepping

Improper prepping can lead to major headaches. Debris can travel surprisingly far during house renovation. For instance, failing to cover doorways can make your entire home dirty.

Using Cheap Products

If you are deciding to dedicated resources to upgrade your home, make sure it lasts. Many folks make the mistake of using low-end materials that do not last very long. There are methods for reducing costs other than using low grade materials.

Removing Everything

Proper house renovation does not necessarily mean that you must tear down to the studs. You can ultimately make more work for yourself and adding unnecessary expenses. Plan out your project and determine what you can reuse before starting tear down. Keeping particular features may need a more careful demolition, so you do need to decide this in advance.

Selecting An Odd Design

You want your renovation to be unique, but it is also critical to consider universal appeal in order to improve resale value. Also consider the current style of your property and make sure that your new design fits well with the existing one. Take all of this into account when choosing color schemes, materials, etc. for your house renovation.

Not Budgeting Realistically

It is important to stay within your target budget, but that is only achievable if you create a realistic one to begin with. It is also not uncommon for unpredictable issues to pop up during construction. Try to include a cushion just to be safe.

Avoiding Typical Missteps With Southern CA House Renovation Jobs

Typical missteps with Southern CA house renovation jobs are far too easy to make. Remaining aware is the first step to avoiding them. Look at your space, opt for an appealing design and long-lasting products, carefully plan prior to beginning any work, and set a realistic budget and schedule for completion. This will help you accomplish a stress-free project with better and longer lasting results.

Benefits of Southern CA Real Estate Investments

When it comes to investing, there are many different opportunities available. From stocks to bonds and business ventures, the options are limitless. Real estate has always been a popular investment for both new and seasoned investors, and with good reason. Here’s a look at the key benefits of Southern CA real estate investments and why you should consider investing in real estate, if you haven’t already.

Asset Tangibility

There’s some to be said about having a tangible asset. It’s quite unique compared to most other types of investments. Often, you rely on the expertise of investment advisors to help you select proper investments. You hope that their decisions are based on reliable and accurate information and that the value of those investments do not change drastically in a negative direction due to circumstances out of your control. With Southern CA real estate investments, there’s less uncertainty in that regard. You have a physical asset that is fairly predictable and easily controlled.

Stable Income Returns

Investments in Southern CA rental properties can provide a predictable and stable flow of income. This tends to be more reliable than other types of income investments. With rental rates on the rise in most areas, including Southern CA, income opportunities are becoming even more appealing. With a well managed property, much of this cash flow can be passive income.

Hedging Against Inflation

As inflation increases, so do rental rates. The pressures of increasing inflation are passed on to tenants, thereby benefiting real estate investors. Thus, Southern CA real estate investments are a great way to hedge against inflation.

Portfolio Diversification

Smart investing always involves diversification. Including Southern CA real estate in your investment portfolio creates a nice balance. Real estate can often increase in value when other types of assets decrease, so it can help counteract other negative investment conditions.

Tax Benefits

Southern CA real estate investments offer several tax benefits. First and foremost, passive income, such as that from rental properties, is taxed at a lower rate than regular income. There is no self-employment tax applied. Depreciation can also be used to your advantage. If managed properly, you can leverage your real estate investments to positively impact your income tax liabilities.

Capital Gains Deferment

Upon the sale of Southern CA investment real estate, you can actually defer payment of capital gains tax on your earnings. This is accomplished through a tax-free exchange. You essentially use the funds received from the sale of real estate investments towards other, like-kind, investments. As you continue to invest in real estate in this manner, you are able to leverage your investment dollars and continually defer payment of capital gains.


After the real estate market declined in 2008, many wondered whether real estate investments would remain a viable investment path. Historically, real estate investments have always exhibited an upward trend, and this pattern remains to be true. Many Southern CA real estate markets have fully recovered from the downturn. In fact, the market is pretty hot right now and those who remained committed to real estate investments are reaping the benefits.

More on the Benefits of Southern CA Real Estate Investments

Southern CA real estate investors are benefiting from quicker home appreciation rates, higher rental incomes, and overall great investment conditions. Whether you’re interesting in flipping rehabbed properties or investing in rental properties, there is an abundance of opportunity and earning potential. The key is to work with individuals who understand this market and how to best leverage it for investment gain. That’s where we come in! You don’t need to be an expert in real estate transactions and maintenance to be a real estate investor. Our partnerships allow you to participate in the booming Southern CA real estate market with the support of an experienced team of professionals. Contact us today for additional information.

Ways of Financing Home Renovations In Southern CA

Some people opt to expand instead of upgrading to a bigger home. The great thing about additions is your option to customize and have it match your personal preferences. Learning about ways of financing home renovations in Southern CA can be useful. The following are some to evaluate.

Unsecured Loans

Unsecured loans are not a perfect alternative but certainly may be a way to fund home renovations. Interest rates are usually higher on unsecured loans than other financing options. Also, interest paid will not have tax benefits. Some people use unsecured loans as interim funding. Once renovations are completed, your home value will appraise for more. This might empower you to then obtain a home equity line or attempt refinancing an existing mortgage. Those funds may be used to pay off unsecured loans.

Home Equity Line

If your property is worth a lot higher than what you currently owe, ask about a home equity line. Most banks will loan up to approximately 80 percent of the current value of your home. A Home equity line offers appealing interest rates and few fees. There are often tax benefits for home equity lines (check with your accountant to be sure). On the down side, the payment period may be shorter and interest rates may fluctuate.

Refinancing An Existing Mortgage

Refinancing an existing mortgage allows you to pull out some equity while retaining just a single loan. It can also be a great way to distribute your home renovation costs over a longer length of time and get a fixed interest rate. The amount of money allowed depends on the particular loan that you obtain and the confirmed value of your property. One down side of this option is the closing costs.

Ways of Financing Home Renovations In Southern CA

Speak with your local loan consultant for information on these options. Also, there may be special home renovation mortgages for which you may qualify. Regardless of which alternative you use, remember that your ongoing recurring home costs will increase as a result. Prior to making a decision, understand what you can afford and what renovation is possible with the budget. The ideas on ways of financing home renovations in Southern CA above are intended merely as a general guideline.

Benefits of Real Estate Investment Partnerships in Southern CA

Real estate is a historically profitable investment opportunity, if done properly. If you are looking to add real estate to your income strategy but lack the knowledge or resources to do it all on your own, investment partnerships may be the perfect solution. There are many benefits of real estate investment partnerships in Southern CA that both newcomers and experienced investors will find appealing.

Combining Resources

TV shows make it seem so easy to find homes, renovate them, and turn them around for profit. The reality is that being an experienced investor doesn’t necessarily mean that you can or want to deal with the day-to-day operations of rehabbing and managing properties. Real estate investment partnerships allow you to combine resources and leverage the expertise of others, which ultimately improves your earning potential.

Investment Analysis Experience

Evaluating and selecting properties for investment can be extremely complicated. There are so many factors to consider including cost of materials, labor, permits, scheduling, resale value, and market conditions. Unless you have first-hand, in-depth experience, it can be difficult to compile accurate and reliable figures for analysis. Real estate investment partnerships in Southern CA employ staff with expertise in these areas, allowing them to make sound investment decisions.

Reduced Risk

With any type of investment, you must consider risk versus reward. Real estate investment partnerships in Southern CA help minimize risk in different ways. First, using proven methods and processes reduces potential issues through every step of the real estate process. Additionally, bundling properties across different geographic regions diversifies investments and lessens the impact of localized market fluctuations. Reducing risk is always important and can directly impact the return on investment.

More on Real Estate Investment Partnerships in Southern CA

The Southern CA real estate market is booming. Participating in real estate investment partnerships will allow you to benefit from the market without undertaking the day-to-day hassles and complexities of real estate investment. Contact Homes, Inc. for information about investment opportunities for your short term and long term goals.

Homes, Inc. Announces Availability of $5 Million Distressed Real Estate Partnership

LOS ANGELES, CA (OFFICIAL RELEASE) — Homes, Inc., a real estate management firm based in Los Angeles, California that sources, identifies, rehabilitates and redevelops residential real estate properties announces the availability of the “Renaissance Distressed Residential Asset Partnership.”  The $5 million partnership gives third-parties the ability to join Homes, Inc. in purchasing distressed real estate in Southern California and thus participate in the significant upside value and subsequent bundling of multiple real estate assets.

“Our localized Southern California real estate footprint and vertically integrated in-house suite of real estate intelligence services creates a one-stop shop for sourcing, due diligence, rehabilitation, sales, partnership management and financial reporting,” says Matthew Rapoport the Managing Director of Homes, Inc.   With Homes, Inc.’s real estate operational expertise, diverse finance experience and a history of managing private partnerships, this opportunity allows potential partners the freedom to invest in one of the hottest real estate markets in the United States.”

The Homes, Inc. team brought together more than 25 years of diverse experience to start the firm in 2010. Since then, Homes, Inc. has experienced great success employing its unique strategy in distressed real estate throughout Southern California.

“We are thrilled with the pre-availability response we have received from our existing partners who share our strategic vision to unlock value through the pursuit of off market, execution-focused property deals. Our focused strategy, access to deal flow and deep skill set enable us to move quickly on opportunities, differentiates us in the marketplace and offers a compelling and distinct partnership opportunity,” Rapoport said.

About Homes, Inc.

Homes, Inc. is a real estate management firm based in Southern California.  Homes, Inc. sources, identifies, rehabilitates and redevelops residential real estate properties in which it can add significant upside value and subsequently bundle these properties into real estate partnerships on behalf of private partners.  Homes, Inc.’s unique partnerships allow third-parties to participate in the booming Southern California real estate market though it’s Distressed Real Estate Partnerships or through its Hassle-Free Rental Income Partnerships based on individual’s short and long term income strategy expectations.



Vince Vo
Homes, Inc.
[email protected]
(213) 334-4141
SOURCE: Homes, Inc.

Interest Rates Increasing This Year – Advice For 2017 Home Buyers In Southern CA

Interest rates have gone up over the last several months. Mortgage experts expect that it will likely rise further during 2017. This is critical news for those who intend to find a property this year. Interest rates increasing this year and advice for 2017 home buyers in Southern CA is discussed further in this article.

Impact of Interest Rates Increasing This Year

Interest rates are used to determine monthly home ownership costs. Increases in interest rates mean that you will be approved for less money and/or pay a lot higher for the same home. Even an incremental surge will result in a difference. If you are looking for a house at the high end of the price range, a little change might really impact you.

Here is an example of how purchase maxes may move with interest rates. This assumes a set down payment percentage and keeping the same mortgage payment.

Interest Rate Price Max
4.00% $449,773
4.25% $436,494
4.50% $423,791
4.75% $411,636
5.00% $400,000

Additional Affordability Factors

In addition to interest rates, movement in real estate values will also make a big difference. In many areas, property prices have been increasing consistently. Bidding wars and offers above list price are the norm again. A lot of this comes from low inventory and high demand.

Advice For 2017 Home Buyers In Southern CA When Weighing Buying Now or Later

Inclining interest rates and real estate prices both have a negative impact on buyers. People will find that their price point is less as the trend continues. The condition of properties within reach will lessen too. With both of these in play, there is little benefit to procrastinating a home.

About The Spring Housing Market

Spring is often the busiest time of year for real estate. There will be more homes for sale to accommodate the growing demand, but competition will be fierce as well. Buyers choosing to purchase can take advantage of still fairly low interest rates. Expected improvements in property values will offer a chance to realize equity more rapidly than typical.

Southern CA Condominium Versus Single Family Homes

A common debate among first time buyers is whether to purchase a condominium or single family house. Both provide different benefits. Buyers naturally evaluate prices between the two options, but there are other considerations to be aware of. Here are several factors for deciding between Southern CA condominium versus single family homes.

Amount of Privacy

Although unattached condominiums are an option in certain regions, usually condominiums are adjoined to one another. Therefore, you normally share walls or floors as well as other areas. If detachment and privacy are important, then single families are a better option.

Social Environment

Because of the relation to other homes and the amenities, Southern CA condominium versus single family homes can be very different. With condominiums, you have more opportunities to socialize with neighbors (while using community amenities). With single family homes, your property is separated from your neighbors, so meeting others will take a deliberate effort. However, some single families located in planned communities might still provide direct interactions if there are community amenities.

Control Over Renovations

The power to perform renovations is an important difference in Southern CA condominium versus single family homes. With condominiums, there are guidelines on what you may or may not do to your property. In most complexes, you may renovate the inside of your home so long as you do not alter the structure. Exterior features are usually controlled by the association. With single families, you may alter any part of the inside or outside of your property. You have more power (limited only by applicable building codes).

Home Repairs

Condominiums need less maintenance compared to single family homes . This is because Condominium fees usually take care of general maintenance such as landscaping and exterior building repairs. So, you do not need to perform certain tasks on your own. With single families, you must complete all of the maintenance, both interior and exterior. If you have limited time for such tasks, then simplified condominium living could be a good fit.

Comparing Southern CA Condominium Versus Single Family Homes

There really is no answer to Southern CA condominium versus single family homes and which option is best. Each offers different advantages. Ultimately, it depends on your specific preferences. Do you prefer to complete fewer maintenance tasks? Do you require extra privacy? What type of social environment do you want? Do you intend to rehab? By answering these questions, you can make an informed decision.

Accuracy Of Computerized Property Pricing Estimates In Southern CA

Computerized property pricing estimates are becoming more popular. As a home buyer or home seller, you might end up forming an opinion on the list price of a home using these estimates. It is critical that you know how these estimates work prior to relying on them.

How Computerized Property Prices are Determined

Computerized property pricing estimates typically use property facts from public sources. This includes information such as living area, bedrooms and bathrooms, and construction type. It is placed in a database and used in predetermined calculations to compute the value of a property.

Limitations of Public Information

Publicly available data is not usually reliable. Commonly, the data has not been updated in many years. It might fail to incorporate any renovations. Furthermore, it will not list items that will directly change house values, such as the condition of different components.

Accuracy of Computerized Property Pricing Estimates

Because public information is not complete, it can not be truly correct. Most websites provide a range for the margin of error. Keep in mind, those margins may be dramatically more locally.

Why You Should Not Depend on Computerized Property Pricing Estimates

As a property seller or buyer, it will be a mistake to solely use computerized property pricing estimates. When going to sell a property, you may set an incorrect price and lose essential marketing time. As a home buyer, you may anger a seller and miss out on your dream home by pricing too low. A proper price range requires an actual person evaluating comprehensive property details from multiple sources and comparing a home to comparable sold properties. This is where your real estate broker plays an important role. When pricing a home to sell, he/she can prepare a report that identifies a specific price range. On the buying side, your agent will advise you on a fair price that gives you the best opportunity for success, particularly in multiple offer scenarios. Remember the accuracy of computerized property pricing estimates in Southern CA provided above as you are searching online and contact a local real estate broker for sound advice.

Renovations That May Increase Property Values in Southern CA

Whether you are wanting to sell your house soon or are simply wishing to perform some upgrades, there are several projects that specifically add value to your property. Some are more affordable than others. A few renovations that may increase property values are provided below.

Decks and Patios

Outdoor entertaining space is always desirable and a great feature. Give some thought to the position and entry to the interior of your home (mainly the kitchen). Also be sure to take into account privacy and landscaping. Because of exposure to weather conditions, making use of modern and resilient resources will improve the life of your deck or patio.

Sunroom Additions

Sunroom additions are a excellent way to boost the living space in your home. They bring in more daylight and make the house seem larger and more appealing. Just picture yourself sitting in the morning sunshine with a drink! Buyers buyer will envision a similar scene.

Add a Bathroom

If your house has only one bathroom, putting in even an extra half bath can be a big improvement when it comes time to when you market your house. It is an issue of convenience. Extra guest baths are also a desirable feature for those who like to have company or have children. Extra baths do not have to be big if you are short on space.

Kitchen Re-Do

Kitchens are one of the most critical features in a house. Consider how much time is spent there. The amount of space in a kitchen is very influential to potential buyers so it might be wise to expand. The layout of a kitchen is also crucial, so adding easy access to the dining room and any additional entertaining areas is important to consider.

Refreshing a Space with Paint

Adding a fresh coat of paint is a small alteration that can dramatically change the look and feel of a space. To improve resale potential, pick neutral hues. This lets others visualize their own belongings in the home instead of being focused on your bold paint colors.

Renovations That May Increase Property Values

From large to small, there are several renovations that may increase property values. Something as simple as repainting can be refreshing and wholly alter the look and feel of your home. If you want a more involved project, kitchen and bathroom remodeling are always an intelligent change. Adding square footage with additional rooms and functionality also improve resale value. If you plan to spend money on your home, why not concentrate on improvements that will benefit you when you are ready to sell?