Welcome To The Latest Issue
Hello! I hope this week's ezine finds you at home, with family, or on a ski vacation in Utah. We've had a flurry of sign-ups for our first-ever "Condo Buying For Smart People" seminar (see below). If you're interested, reserve a seat now as we may fill up!

We begin this week with an odd story submitted by one of our readers, M.K. Be sure to email me at Stories@GaryKent.com if you have a funny or unusual real estate story to share.

True Story: Submitted by Reader "M.K."
"Once upon a time, long, long ago, in San Diego, we went as newlyweds to look at an open house being held by an owner. He was a tall man, who toured us through the house room by room. Both of us were startled when we came to a dim room lighted by tall candles in elaborate holders. Also in the room were four or five enormous religious statues and actual PEWS. My husband was at a loss for words, but I smoothly said, 'Oh! This must be the chapel.' And that's how I established my title as 'family diplomat.'"

Interested In Positive Cashflow Apartments With No Management Hassles?
Want a hands-off real estate investment with consistent positive cashflow? Sound too good to be true? I've found a great investment opportunity that I'm personally investing in, as have several of my clients. If you have $100,000 to $3,000,000 to invest and want to find out more...Call me at (858)457-KENT or CLICK HERE for info on the Positive Cash-Flow Apartments

FREE GUIDE: "How To Sell Your Home Without A Broker & Save Thousands"
Selling a home is complex and tough to do on your own successfully. Though a good broker gets you a higher price, some people want to give it a shot on their own. If you've thought of trying to sell "by owner", you'll want this informative, free guide.

Random Quote
"Suburbia is where the developer bulldozes out the trees, then names the streets after them." --Bill Vaughan

There's a "Perfect Storm" of three unique trends shaping now to May 1st as the ideal time to buy a San Diego condo or townhome UNDER MARKET. Will you miss out or take advantage? Come learn almost everything you need to know before you purchase a condo or townhome! At this seminar, You'll Discover:

- Why people say RIGHT NOW may be your golden window of opportunity to buy a condo at the LOWEST PRICE
- Pro's and Con's of owning a condo
- How to find motivated--even DESPERATE--condo sellers
- Should you buy new construction, a conversion, or resale?
- How to get a FREE Inspection & FREE appraisal when you buy
- Key condo documents explained: CC&Rs, Rules, Bylaws, etc
- Condo vs. Townhome vs. Co-op vs. House w/ HOA
- What do you REALLY own when you buy a condo?
- How to get the best loan for your condo
- Easy way to find out if a condo complex has costly problems
- 4 Condo myths that could cost you
- How to buy a condo ZERO DOWN
- Rent vs. buy? You may be surprised!
- 5 Questions You MUST Ask Before You Buy ANY Condo
- Monthly condo fees: good deal or waste of money?
- Condo situations, problems, and complications to avoid
- Why condos make an excellent 1st investment
- Buying a condo for your college student

Many experts see a 3-6 month window of opportunity to buy a condo or townhome at below-market prices. Will you miss out or take advantage?

"My son and his wife have been trying to buy their first home, but with the crazy prices in San Diego they just can't afford anything in a decent area. They've been looking since summer. Can you think of any creative ideas to help them buy a home?"

***ANSWER:
I feel their pain. Here are a few good (but not great) ideas to help them:
1. Buy a small, basic, inexpensive condo in an ugly complex
2. Buy a duplex with friend or family, each living on one side
3. Buy a duplex with friend or family who wouldn't live there
4. Buy a mobile home
5. Get creative financing such as a "Pay-Option ARM" mortgage, but only if you can afford the higher payments later!
6. Have them talk with a smart lender to see if it would help to restructure their finances, such as by selling a car with a high payment or consolidating other debt.

Hope that helps them...

"Hey Gary. We want to sell our parent's old house in the Muirlands in La Jolla. The thing is it's leased through the end of July. If we sell, what happens with the lease? Do you think a buyer will just take it over?"

***ANSWER:
Leases "run with the property", not the owner. That means if you sell, the lease is binding on the new owner. (Exception: if a property if foreclosed on, the lease is null and void.)

Unless you're selling an investment property, you'll severely limit your pool of potential buyers if you try to sell a leased home. And that will get you a slower sale at a much lower price. Not what you want.

My advice:

Ask the tenant if they'll mutually agree to end the lease early. If they don't jump at the chance, offer them that universal incentive: $$$. How much? There's no formula, but perhaps 1/2 to 1 month's rent. It all depends on how soon you want or need to sell.

Should the tenant stay while the home is for sale. It depends. Here are 2 scenarios:

1. The tenant is tidy and cooperative with showings, including a lockbox...
Since we don't know how long it will take to sell the home, make the agreement flexible. Have the tenant stay until you give them a 30-day notice.

2. The tenant is a rude, filthy, uncooperative slob...

Give them their notice now, provided you can afford to make the payment without getting rent.

Now pay close attention to this next step:

Put your agreement IN WRITING and have the tenant SIGN IT. Otherwise you could face an ugly situation where you sign an offer with a buyer, commit to deliver the house vacant, then the tenant suffers a bout of amnesia and refuses to move. That could land you some new friends...attorneys.

Next, when you get an offer, negotiate an escrow period that allows enough time for the buyer to do their inspections and for you to then give the tenant the 30-day notice.

If the inspections are OK, give the notice, have the tenant move, pay him or her what you promised, close the escrow, and live happily ever after.

Wasn’t that easy?

"Dear Mr. Kent: I own several rental properties out of state, including a studio condo. But none of them have a positive cashflow. Any suggestions?"

***ANSWER:

I don't know enough about your specific situation, so I offer you these general thoughts:

1. I don't recommend studio condos for cash flow.

2. Long-distance ownership means your manager is the key to cashflow: getting top rents, avoiding vacancies, controlling expenses. Perhaps you need a new manager.

3. As I mentioned above, I'm personally investing in apartments in a partnership in Phoenix. The lead partner has a sterling 40-year track record there and virtually all of his investments have healthy positive cashflows. Perhaps you might want to sell your property and invest in the partnership. Call me if you'd like to discuss it.

Your Home Here!

- Clairemont - Enjoy canyon views & breezes! W. Clairemont 4R/2BA home w/ dbl garage & basement. Reduced: 499-530K Contact Me

- Clairemont - Gorgeous redone townhome: dbl garage, fam rm, FPL, remod kitch, huge patio, no HOA fees for 6mo's! 440K-485K Contact Me

- SOLD/Clairemont - Updated "Mount Street" 4BR/2BA home w/ dbl garage. Newer central a/c, roof, heater. Reduced: 500K! Contact Me

- Clairemont - Spacious 3BR/2BA home w/ HUGE 580sqft family room/ "great room"! Quiet street, 2-car garage. Reduced: 575K Contact Me

- La Jolla - 3BR/2BA 1-level home on quiet street. Large lush private bkyd, redone kitch & BAs, valley vu, tennis! 720-750K Contact Me

- Mission Hills - Attention Contractors / Developers / Investors! Buildable lot suitable for 4-8 homes. 750-850K!  Contact Me

- Oceanside - Newer 5BR/3BA, 2344 sqft home w/ family room, sunny just-remodeled kitchen, Saltillo tile. Reduced: 560-615K! Contact Me

- SOLD/Pacific Beach - North P.B. 3br/2ba house w/ hardwood floors, gas FPL, skylights, grassy yard, dbl-garage. $699,999  Contact Me

- Pacific Beach - Development Opportunity! Redone 3BR home w/ room to build 2 condos. Resell or hold for income. 825-900K Contact Me

- Phoenix, AZ - 30 apartments, large 3BR & 2BR units, well-maintained complex, Mesa area. Do a condo conversion? $2.1M. Contact Me

- Pt. Loma - Point Loma Tennis Club ground-floor corner unit w/ remodeled bath. Big rooms. Looks like a model! 275-300K!  Contact Me

- San Carlos - Cute 1BR condo w/ greenbelt view on a quiet culdesac. Incl new paint, frig, walk-in closet. Reduced: 210-233K  Contact Me

- University City - Striking 2004 full remodel 3414sqft home: 1/2-acre culdesac lot, flowing floorplan, vivid colors. 988K-1.15M  Contact Me

- USD Area - Light & bright 3BR/3BA 1431sqft townhome w/ 2-car garage, quiet area. Priced BELOW recent sales & reduced: 535K!  Contact Me

- Vista - Private, secluded, hilltop home with 4br/3ba, 3000sqft, big lot, garage, & more: 770-795K  Contact Me

Thank you, Mary L., for referring your clients to sell their home...

Have a great new year...

"The Agent You See EVERYWHERE"

Gary Kent Team --- RE/MAX Associates