Dog DoDo is an added feature?

So recently a home came on the market close to my home.  The seller was a FISBO and was having an open house on Saturday.  At 11 Am Saturday, I was touring the house along with about 100+ other buyers and RE Agents.  The home was a dump.  Really bad.  But the biggest shocker was that the homeowners were dogie fans and were fostering a lot of dogs in the 3rd bedroom.  And the room was covered 2 inched thick on the floor and about 3 feed up the side with dog DoDo.  Really bad situation.  I meet the owner on the front porch and asked him if he was going to clean up the mess.  He said ‘nope, comes with the house’.  (I wonder if there was language in the purchase contract that says it conveys?) And somehow, he figured out I was an agent, and he was not interested in listing the home with some ‘SOB  F**** Agent’.   He really did not have to list, he sold the home for more than the asking price that day.    That was in 1978.

Is there Irritation Exuberance in the market?

I have been in real estate for 45+ years and one thing, I have learned is that the market is always moving in a direction, and today that direction is currently up. Presently the inventory has an absorption rate of around 30-days, this means we have 30-days of inventory on the market.  Sold to list ratio is 99% which means everything on the market is selling within hours.  We are entering into the season-to-sell, let us see what happens in a few months.  Great time to be a seller, especially if you are fostering dogs. If you have inventory to sell, is it time to get out?  

What is going on flipping homes?

Are there home out there to flip?    No. I have seen this market before in my carrier.  It is beyond hot; it is Now Boiling over. In technical the call this a ‘melt up‘.  I have heard stories of a broker placing a home on the market on Saturday, and by Sunday she has over 61 offers!  The current strategy is to purchase a home, if you can find one, and resell in escrow for 20K more.  I have seen this before, and it never ends well.  

So how do you find a flip? Most of the fix-and-flip deals are obtained off-market (i.e. They know someone.) Wholesalers are providing deals, but the asking prices are so high that I have been recommending to some clients NOT TO DO THE DEAL; there is no spread in the deal to make it profitable.  

So what do you do?

Get out while the getting-is-good?  Something must break, it always does, nothing stays the same the market will move down. 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel: 623-582-4444
Level4Funding.com

Private Hard Money Lender
Dennis@Level4Funding.com

Who is this Dude? Dennis brings with him substantial experience in residential real estate. Dennis has extensive experience purchasing, renting, and selling numerous homes over the past 45 years. His first purchase was a property in California when he was 18 years old.   Dennis graduated from California State University Pomona with majors in Computer Science and Business Management. He is a Licensed Mortgage Broker, Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance Agent Certified Sort Sales Specialist (CSS), Certified Negotiator (CNE), and FAA Licensed Private Pilot.  

Funding LLC is acting as Mortgage Brokers. These are short-term loans 3-60 months. You are not required to pay any upfront fees. However, some programs may require you to pay for an appraisal or BPO. Appraisals/BPO are handled by a non-affiliated 3rd party and all fees and costs are collected by the 3rd party not by us at Level 4 Funding LLC. For the lowest possible rate, typically the borrower will have§ LTV of 55% or less, a Tri-Merged FICO Credit score of 7 40 or better. APR for loans vary from 5.99 – 29.5% and is determined after evaluating: 1. Property location, 2. Loan to Value (LTV) based on adown payment or equity, 3. Credit Score (FICO), 4. Ability to repay, and DSR (Debt Service Ratio, 5. Your capabilities/experience and 6. Site Inspection and title report To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 9133 W Plum Road, Peoria AZ 85383 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the exclusive use of the intended recipients and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the e-mail from your computer and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege Neither this e¬mail nor any attachments establish a client relationship, constitute an electronic signature, or provide consent to contract electronically, unless expressly so stated by Dennis Dahlberg RI/CEO, Level 4 Funding LLC, in the body of this e-mail or an attachment. To the extent, this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice.