All Forum Posts by: Mel Selvidge

I have an unusual land listing in the Berkeley Hills that my client is considering selling at auction. It's got glorious three-bridge views, electric, water, and neighbors (presumably on septic), but is not believed to be presently buildable because there isn't nearby municipal sewer. It was priced on the MLS to account for this, however nonetheless its been hard to comp. If the sewer issue were to be rectified, we'd expect the value to be much, much higher, so it could be a great investment for someone in a position to hold it. The challenge has been connecting with that buyer. The seller is considering selling it via an auction website to reach a more investment-oriented buyers.

Can anyone share their experience selling their own land this way?  Do you feel like you got a fair market value?  Were there pitfalls to be aware of?  Is there a standard practice for dealing with contingencies in private party land auctions?  Is there a preferred site?

Thanks for any info or advice.

Thanks for the shout out @J. Martin!  I signed up including dinner.  (I hope there is something vegetarian.)  I've shared the link with a couple of clients who are not on BP too.  I'm driving up from Berkeley and probably have room in my car if someone needs a ride.  Thanks @Al Williamson for organizing this!

Mel Selvidge, Realtor     Cal BRE# 01966449     Pacific Union International | Christie's

Around 20 years ago Oral Lee Brown was a real estate agent earning a very modest income when she told one of the most at-risk first grade classes in Oakland that she expected all of them to complete college and would pay for every one of them to do so. She kept her word.

What happens when a group of kids grow up knowing that they are both expected and supported to succeed? In an city where with a high school drop out rate of 40-50%, 18 out of the original 22 students completed college or other post-secondary education with her support.

Now there is a foundation in her name that sponsors one high-risk class of first graders every four years, so there are multiple cohorts in the "pipeline" towards higher ed.

The foundation is hosting a fundraising walk-a-thon on Saturday October 3rd. Please join me and the  group in supporting this important service to some of the most at risk young people in our community.

When: Saturday, 10/3/2015. On-site registration starts at 8:30. Walk starts at 9:00 a.m.

Where: Children's Fairy Land at Lake Merritt, Oakland 

How:  Pre-register here or register before the event. Requested donation is $35/adult and $10/child.  Please RSVP to our MeetUp group if you'll be joining us.

keywords:  San Francisco Bay Area, East Bay

Hi, Robert.  Are you looking to buy a primary residence in the Bay Area or to get an investment-only property here?  My pros/cons below assume the former.  

FWIW, I'm hosting a meetup on Wed. in Berkeley to compare the costs/benefits of renting vs. buying, and we'll look at factors like appreciation, property tax over time, and inflation.  I'm also a vacation rental owner (and have been looking to get another in the Sonoma area too...love it there!) and would be happy to look at how you project that type of income with you.  

Here are a few pros/cons off the top of my head:

Pros:

Buying in Sonoma coast area:  

• Strong vacation rental market relative to price in some areas
• Existing services for marketing and maintaining a vacation rental property
• Prop 13 will keep your taxes lower for the long haul (as you noted)
• It's where you want to be and end up, so whether or not it's a great cashflow or appreciation investment, it will be valuable to you.

Buying in Bay Area:

• It's where you live.
• It might be cheaper than rent,
• If you buy at a fixed rate, the future affordability more assured in 10 or 20 years than rent, assuming that both rent and home values go up as they historically have.
• It will likely cashflow like gangbusters if and when you decide to move to Sonoma for retirement.
• At retirement, you're likely (historically) to have equity that you can pull for a future Sonoma purchase as well as cashflow from the home if you hold it and rent it.
• Lower interest rates, more loan products (i.e. FHA, other low down payment options), and some sources (Fannie Mae Homeopath first dibs) are only for owner-occupants.

Cons:

Buying in Sonoma coast area:

• Rents on non-vacation rentals are low.
• If you do vacation rental, it can be time intensive and expensive to operate, depending on how you run it.
• If you rent in the E. Bay, there will be rent increases over time. 
• Higher interest rates and more down payment required for non-resident/investment property.

Buying in Bay Area:

• What you can afford to buy might not be as nice as what you can afford to rent, even if the numbers work out in favor of buying.
• Rent control and transient rental restrictions may complicate future options for using it as a rental.
• Higher local property tax special assessments that are not capped by Prop 13.
• Market is very hot.

I'm not too far away from you though, and I'd be happy to exchange ideas in person. 

In my area (SF Bay Area) the MLS isn't as commonly used for rentals, so the prices there seem very inflated and geared towards people using company-provided relocation services. I find the craigslist map search gives me the best block-by-block comparison in a place where being only .5 mi away, but on the "wrong" side of a certain street can make all the difference in the world.

You also post a "coming soon" ad for the price you think is fair and see how many calls you get and from what type of tenants.  This might not only give you the data you seek, but also set you up with some good prospective tenants.  I once waited until the last minute to advertise a property, and I found that the people who were in need of a house on five days notice tended to be the ones that had been rejected by every landlord in town already.

Good luck!

MeetUp bump and reminder...

Looking forward to meeting more of you and learning about your home investment goals!  It should be a beautiful evening for the courtyard.

Have you ever wondered what kind of home the money you spend on rent would buy? Let's crunch the numbers and find out! 

Feel free to bring your laptop and play along!

http://www.meetup.com/Berkeley-Real-Estate-Meetup/events/223777055/

6:30-6:45 Get snacks and network

6:45-7:45 Interactive presentation and group discussion

7:45-8:30 Break out to continue discussions and networking.

We'll look at mortgage costs and availability (mortgage expert, Dianne Crosby, should be on hand to answer your specific questions), property taxes, insurance, tax benefits, possible income streams, maintenance, appreciation, forced-appreciation, and some rent control issues.

The presentation and group discussion will be indoors, but we have a beautiful back yard for networking, so I recommend bringing a jacket in case it's cold.

Please RSVP on MeetUp for the address!

http://www.meetup.com/Berkeley-Real-Estate-Meetup/events/223777055/

This is a FREE Meet Up. Snacks will be provided.  Some marketing materials will be available, but there is no pitching.  There are a dozen good restaurants within a block if you want dinner before or after. We're located in Berkeley's Elmwood neighborhood, 0.8 mi from Rockridge BART or ~1 mi from Ashby BART.

Hosted by agt. Mel Selvidge (BRE# 01966449)

Bumping to remind everyone about this great opportunity to learn some great tips and tricks from superstar mortgage broker, Dianne Crosby.

Time of Event: 06/10/2015 at 06:30PM
Location: College Ave. near Ashby in Berkeley, CA
Fee to Attend: Free

RSVP at MeetUp:  http://www.meetup.com/Berkeley-Real-Estate-Meetup/events/222698536/

One more week until this great opportunity to ask and learn about a variety of loan options from someone with a lot of recent experience making them work locally.

Whether you're looking for FHA, VA, or other low-down payment mortgage alternatives, portfolio loans, conventional conforming loans, jumbos...you name it, Dianne knows the ins and outs of where to find them, and how to make sure that they close.

Please join us for group discussion, Q&A, and networking.  See the first post for RSVP links.

We will begin the evening with networking and refreshments as people arrive, then Dianne Crosby will share her expert knowledge of obtaining and closing real estate loans to meet a variety of different needs. We will have a group Q&A session, then break out for more networking.

There is a nice outdoor courtyard at the venue, so bring a sweater if you'd like to mingle there. The presentation will be indoors.

More about Dianne's Presentation:

Dianne Crosby will share information about current lender guidelines, the advantages and limitations of financing property under the Fannie Mae and Freddie Mac platforms, common pitfalls for investors and how the rules differ depending on the type of property you want to buy: condos, single family homes and multi-unit properties. She will offer some finance strategies, tips for strengthening your loan application and the current forecast for mortgage rates.

Diane is a nationally ranked mortgage banker with an excellent reputation in the Bay Area for closing deals. She works with a wide array of home buyers and investors.  

Where:  On College Ave. near Ashby.  Please RSVP at meetup.com to get the address. 

When:  Wed. June 10, 2015 at 6:30 p.m.

RSVP link:  http://www.meetup.com/Berkeley-Real-Estate-Meetup/...