DENA LAND NEWS A MONTHLY NEWSLETTER BY LINDA LANE-WHITE—KELLER WILLIAMS REALTY SERVING MY HOMETOWN OF ALTADENA/PASADENA AND OUTLYING AREAS November 2008
Elections, Families — and Thankfulness Your picture here
Linda Lane-White “Singing” Realtor ® CA Lic #01091347 Notary Public
As the month (and the year) come to a close, it is time to sit down with our families and remember why we are thankful. At this writing, we don’t know who the new President will be. We don’t know the outcome of many political and economic issues. But whatever the results, I can still see families all over America gathered together for fun, food, football, and, I hope, a moment of thankfulness for what we share as families and as a nation.
If you look at the political polls, you have to expect that half of the people who sit down to dinner this year will be disappointed in the election outcome. Half will be elated. But I hope we can say that all will be Americans just striving to create happy, healthy families and homes. Oh, and speaking of which, if there is a home in your future (and there are so many great deals today!), call me. I’d love to help. Linda Lane-White (626) 786-1231
Investing in Real Estate Now? Why, Yes!
According to the news media, the world has ended. Sorry folks, everything crashed, there’s no more real estate. Banks are no longer issuing home loans and no one is buying anything any more. It’s over. Back here on planet Earth, however, things aren’t as gloomy as in TVLand. Sure, the real estate market isn’t what it was a few years ago, but homes are being bought and sold every day. Banks are still issuing loans believe it or not, and great deals abound for those looking to buy. Buy now? Why, yes. You are no doubt familiar with the most basic rule of investing— “buy low, sell high.” Well, the “buy low” part requires a period of time when prices are low, and that would be right about now. Waiting for the market to improve before jumping in? That’s when the prices will already have increased, and buying then would go against the simple rule we just mentioned. There is no doubt that the market will go up again (because, historically, that’s what the real estate market always does), we just don’t know when that will happen. What we do know is that now is a pretty good time to get started investing in real estate, so for anyone thinking in that direction let’s review the five most important steps in getting started: Have a clear plan. Real estate investing is a business and should be treated as such, not as a hobby. Sit down and make a plan for it then. Will you be investing for the long-term (renting) or short-term (fixing
and flipping)? How much time can you set aside for your business every week? What work can you do yourself and what work will you need help with? What are your overall goals for real estate investing? Remember, despite what late-night infomercials say, getting rich “overnight usually takes years, so having realistic expectations is very important, too. Line up financing. Getting preapproved for a loan before you find a property is a must. Talk to several lenders, talk to your Realtor and ask for recommendations. When you complete this step you will know exactly how much money for the down payment you will need, what the rules for seller-financing are, and what you can expect the loan process will look like. If you plan on purchasing a property to rehab, ask about loan programs that provide money for that, too. Line up your own cash. I have to bring up the late night “real estate gurus” again…”You don’t need any cash to buy an investment property,” they like to exclaim. Yeah right. Even if you can find a property that can be purchased for no money down (not as easy as it sounds), you still need to have cash in the bank for other costs. Like repairs. Or unexpected expenses. Or for
mortgage payments when your tenant suddenly leaves and you are unable to find another one right away. Not having enough cash reserves is perhaps the biggest mistake rookie real estate investors make, and it’s a mistake that can cost you dearly. So how much in cash reserves should you have? There’s no definitive answer to this question; you have to consider the property you plan on buying and try to determine what expenses you may have to deal with (New roof soon? Water heater? Flaky tenants?). Three-to-six months worth of mortgage payments and expenses is a good rule of thumb, but again, your situation may vary. Assemble your team. Once you are ready to get started, you don’t have to (and shouldn’t) go it alone. There are professionals that can help you along the way. First, you will need a good Realtor (and fortunately you already know one! Me!) The Realtor’s job is not only to help you find the right property, but also to answer questions and guide you through the process. You’ll also need a good accountant who can answer tax-related questions. Knowing a good property inspector is also a plus, as well as knowing a few loan officers who are familiar with investment properties. Acquire knowledge. Know the area. Know what type of property you’d like to invest in. Learn everything about it. ie. Taxes, history, etc. Talk to your Realtor, talk to other investors, read a book or two. Talk to your accountant. The more information you have, the better.
Dena Land News—Linda Lane-White • Keller Williams Realty (626) 786-1231 • www.lindalanewhite.com
Can You Use Solar Power?
T
hinking of installing some sort of solar power for your home? Wondering whether a home you might buy would accommodate solar? One Web site can help you evaluate whether solar is feasible for your roof and help you compare costs. Roofray.com cleverly uses satellite images to help users see for themselves how useful solar arrays might be. The easy solar modeling service even lets you compare utility costs over time. Users simply type in their street address and nearly instantly a rooftop picture of their home appears. Then a few point-andclicks later you quickly get an estimated percentage of potential for solar, power per square foot, the area of the solar arrays you drew and a total peak power estimate. Have your utility bills for the year in hand and you can get an estimate of current costs versus solar costs. Launched in August 2008, the Web site is up and running but some aspects are still being upgraded or even under construction. At this writing there is no useful help section, but check the blog link for updates on what features will be added.
Election nominee Across 1. Bean counter, for short 4. One of the Osmonds 9. Dashed 10. Best of the best 11. Europe's highest volcano 13. Chess piece 14. Fixed 16. Surgery theater, for short 17. By way of 18. "__ You Like It" 20. A row or line of hay 22. Feathery scarves 24. Quick and easy to move 25. Merger 27. "__ better be good!" 28. Newspaper section 29. Scot's refusal
Down 1. Belief 2. Devonshire dad 3. "___ and the King of Siam" 4. Pine Tree State: Abbr. 5. "So soon?" 6. Brawl 7. "Am ___ believe ...?" 8. Startled cry 12. Consultant 15. Break a Commandment 18. Heart line 19. Stockholm native 20. Hang around 21. Parade spoiler 22. Lazy person 23. Formula ___ 26. "We have __
The headline is a clue to the answer in the diagonal.
How well do you know your Presidents? 1. 2.
Abraham Lincoln was born in a one-room log cabin in which U.S. state? a-Kentucky, b-Illinois, c -Tennessee, d-North Carolina. Camp David's presidential cabin shares its name with what kind of tree? a-Aspen, b-Spruce, cLarch, d-Redwood.
Answers: Email me to find out the answers or, if you know the answer and you are the first to tell me, I’ll send you a coupon for a pizza. lindalanewhite@kw.com
What Is A REO? Occasionally homebuyers will look at a property listed as REO, a term that might be a bit puzzling. REO stands for Real Estate Owned and refers to the inventory of real estate that banks and mortgage companies own as a result of foreclosure. Since REO properties are those that the lender has taken back, they often have unique problems. For one thing, such properties typically need repairs. Owners who lose their homes usually go through a period when they can't afford even simple
repairs. For another thing, it can take some time to negotiate a deal for an REO. You can expect that after you make an offer, the response will take longer than normal. However, you might be able to find some good bargains on these properties and buying one can be worth the wait.
Cranberry Apple Sauce This is a delicious accompaniment to turkey, pork or chicken. INGREDIENTS: 1/3 cup apple cider or apple juice 1/4 cup sugar One 12 ounce bag fresh cranberries 2 apples, peeled, cored, chopped DIRECTIONS: In a medium non-reactive saucepan, dissolve sugar into juice over a medium heat. Stir in cranberries and chopped apples. Bring to a boil then reduce heat and simmer until cranberries pop and sauce thickens. Makes about 4 cups.
Quick Fixes for Cooking Calamities If you find you’re missing a few ingredients for your holiday festivities, don’t panic! These quick and easy substitutions can keep your No buttermilk? Use plain yogurt or thinned sour cream or crème fraiche instead. Or add 1 tablespoon lemon juice or white vinegar to 1 cup milk and let stand 5 minutes. No dry break crumbs? Just get some bread, tear it up into small chunks, saute in a skillet with a little butter until browned. No eggs? If it’s for baking, substitute /4 cup applesauce for 1 egg. No cake flour? For 1 cup of cake flour, sift together 7/8 cup all-purpose flour and 2 tablespoons cornstarch. No sweet potatoes for a casserole, soup or gratin-type dish? Use butternut squash or pumpkin. No granulated sugar? For every 1 cup needed, use 3/4 cup confectioners’ sugar or 3/4 cup honey. No parchment paper? Use brown paper or waxed paper (not over high heat), or just grease and flour the pan. No kitchen twine to truss the turkey? Use unwaxed, unflavored dental floss.
Active Adults Corner
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In Loving Memory Of
Susan J. White May 17, 1941—Oct 22, 2008 You will always be in our hearts. Holidays will not be the same without you. We miss you. We love you.
Trust Linda Lane-White as your Seniors Real Estate Specialist®
Pasadena Senior Center Events for November 85 E Holly Street, Pasadena, CA 91103 Veterans’ Day Salute & BBQ Tuesday, November 11, 2008 $5.00 for members $8.00 for non-members
Thanksgiving Dinner Thursday, November 27, 2008 12:00 Noon $6.00 for members, $9.00 for non-members
Make your reservation at the Welcome Desk or call (626) 795-4331
Celebrate Turkey Day at the Senior Center with your family and friends! The menu will include a traditional home cooked turkey dinner with stuffing, mashed potatoes, vegetables, salad and dessert. You will be treated as royalty as volunteers will serve you at your table. Pre-paid reservations need to be made by Monday, November 24th.
Thanksgiving Day Events Pasadena Union Station Potluck: Call 626/240-4550 ext 105 to volunteer or donate International Institute of Los Angeles: 18th Annual Dinner.Volunteer by calling 323/2646210 The Original Pantry Café: 877 S. Figueroa , Los Angeles. 12pm to 8pm 213/972-9279 Ritz-Carlton Pasadena: 1401 S. Oak Knoll, Pasadena 5pm to 9:30pm 626/585-6218 Queen Mary:Sir Winston Restaurant 11am to 6pm 562/499-1657 Pie ‘N Burger: Pick up your holiday pie. 913 E California, Pasadena 626/795-1123 La Canada Run For The Hungry: Memorial Park, La Canada7am www.runforthehungry.com
Dena Land News—Linda Lane-White • Keller Williams Realty (626) 786-1231 • www.lindalanewhite.com
When Buying or Refinancing... Call Peter First &
Get Pre-Approved
Peter Cosfol Augusta Financial Senior Loan Officer
Augusta Financial is a service oriented mortgage company that specializes in residential financing. We have many loan programs to help our clients with all of their mortgage needs. Peter offers the best pricing with the lowest fees! Peter will personally address all of your questions and concerns regarding the loan process! Augusta Financial makes the loan process seem easy! Augusta is both Broker and Mortgage Banker! We offer In-house processing and funding!
Excellent customer service! (661) 260-2970 Office · (661) 291-2234 Direct · (818) 281-1466 Cell Recent Area Sales Days On Market
Date Sold
6 269 8 38 15 362 303 107 33 160 21 6 329 85 19 27 62 83
10/24/2008 10/1/2008 10/23/2008 10/24/2008 10/2/2008 10/15/2008 10/2/2008 10/10/2008 10/16/2008 10/13/2008 10/22/2008 10/17/2008 10/20/2008 10/15/2008 10/24/2008 10/10/2008 10/23/2008 10/8/2008
Sales Price
Address
$ 367,000 560 W Loma Alta Drive $ 488,000 3164 Crestford Drive $ 763,705 985 E Poppyfields Drive $ 619,500 1284 E Loma Alta Drive $ 250,000 15611 Yorba Avenue $ 900,000 13910 Plumrose Place $ 374,750 1118 E Renwick Road $ 500,000 614 N Vermont Avenue $ 980,000 4621 Encinas Drive $ 406,000 3742 Montrose Avenue $ 329,900 1815 El Sereno Avenue $ 620,000 1500 N Mar Vista Avenue $ 490,000 191 S Meridith Avenue $ 2,850,000 587 S Hill Avenue $ 582,500 2252 White Street $ 1,775,000 1970 Sierra Madre Villa Ave $ 425,000 1142 Deveron Court $ 1,200,000 448 W Grandview Avenue
(Derived from PFAR MLS) City Area
Altadena Altadena Altadena Altadena Chino Hills Chino Hills Glendora Glendora La Canada/Flintridge La Crescenta/Glen-Mo Pasadena (NW) Pasadena (NE) Pasadena (SE) Pasadena (SE) Pasadena (SE) Pasadena (NE) San Dimas Sierra Madre
Bed/ Bath
S.F. House
S.F. Lot
4/2 4/2 3/2 4/2 4/2 4/5 4/2 4/3 2/1 2/1 4/2 4/3 4/2 7/7 4/3 4/3 4/3 5/5
1462 1530 2286 1635 1548 3695 1723 1791 1525 951 1616 1701 1428 6418 1972 2671 1758 3850
6240 9100 8122 7441 6625 13939 7900 9440 12792 5500 12031 5580 7729 45050 8304 28612 10297 11000
Who do you know right now who’s looking to buy, sell or invest in real estate? Give me a call or send me an E-mail. I’m never too busy for your referrals to friends or family. This publication is for informational purposes only and does not constitute legal or financial advice. All information was obtained from sources deemed reliable, and while I do not doubt its accuracy, I cannot guarantee it. Some items provided by CAR Client Direct and Fidelity National Home Warranty. If your property is listed with another broker, this is not intended as a solicitation.
Ask an Expert Q&A: 2008 Hope for Homeowners
does the 2008 Hope for Homeowners legislation help Q How homeowners?
A
Many homeowners trapped in high-cost, variable rate mortgages are suffering because their payments are going up and becoming unaffordable. Since property values are going down, many of them have actually lost equity and they can't refinance. Some of these people may now be able to cancel their old mortgage loans and replace them with fixed-rate loans for up to 90 percent of the home's current value. Not everyone will be eligible for this because the banks that made the loans would have to accept a loss on the old mortgage. Banks would benefit by avoiding a costly foreclosure. Q - Can you tell me who is eligible for this program? A - The main eligibility rule is that homeowners must be able to pay their new, refinanced mortgage based on HUD rules of mortgage financing. Besides that, eligible borrowers are those that have to spend more than 31 percent of their monthly incomes on their mortgages as of March 31, 2008. The loan must have originated no later than Jan. 1, 2008. The homeowner must show he did not intentionally miss mortgage payments. Finally, the home that you want refinanced must be the only home you own. Q - When does the program start? A - The law goes into effect Oct. 1 and runs through September 2011. But if you think you might be eligible for the program, you want to have your eligibility assessed as soon as possible. Contact your local HUD-approved counseling agency or Hope Now Alliance (888-995-HOPE). Q - What can homeowners do to increase the chance that they will be eligible for the program? A - Remember lenders can choose which loans to refinance. You can check with the lender who has your mortgage, but don't expect a quick response and don't expect a windfall. The lender might take weeks to decide if it will choose your loan to refinance.
One thing you do NOT want to do is get behind on your mortgage payments. According to Dan Seiver, a finance professor, "Turning yourself into a financial basket case is not going to work. If you turn into a complete deadbeat, the servicer is going to just foreclose and dump (your property.)" Another thing you can do is closely track your expenses and income and project your cash flow for six months. This should give yourself better control of your finances. Q - What if I refinance and then sell my home? A - Congress has not created a windfall freebie for homeowners in trouble. If you sell during the next five years, you have to agree to share half the profits from the resale with the government. Remember, by refinancing under this scheme, you refinance 90 percent of the value of the house. You could say, therefore, that you have 10 percent equity. But this equity must be repaid. In the first year after a sale, the homeowner would have zero equity from a sale. The amount rises 10 percent in each succeeding year and caps at 50 percent from a sale in year five and thereafter. Q - Where can I read about the housing bill? A - http://banking.senate.gov/public/_files/ HousingandEconomicRecoveryActSummary.pdf. The FHA's Web site at http://www.fha.gov is a place to watch for updated information. The entire 694-page bill is at http:// www.house.gov/apps/list/press/financialsvcs_dem/ hr3221_bill_text.pdf
Dena Land News—Linda Lane-White • Keller Williams Realty (626) 786-1231 • www.lindalanewhite.com
Pasadena Market Center 445 S. Fair Oaks Avenue Pasadena, CA 91105 Cell: (626) 786-1231 Office: (626) 204-3436 Fax: (626) 296-1979 lindalanewhite@sbcglobal.net
Home Office: 519 Alameda, Altadena Each Office Is Independently Owned and Operated
Linda Lane-White “Singing” Realtor® CA Lic #01091347 (since 1990) Notary Public (since 1987)
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November Happenings in Dena Land Every Saturday & Sunday through December 7th - 9am-12pm. Help save Christmas Tree Lane by participating in “Lights Up”. Calling all volunteers and Service Groups. This year will be the last lighting of Christmas Tree Lane unless the community can come together and get involved with putting lights up or serving on the board. Call me for details at 626-786-1231. Marvin Neumann conducts the Crown City Symphony :(Mr. Neumann was my conductor when I played the violin years ago-LLW) Saturday, November 15th at 2:00 at Villa Park, 2585 E Washington Blvd. near Altadena Drive Saturday, November 22nd at 2:00 at the Altadena Senior Center, 560 E Mariposa, Altadena Sunday, November 23rd at 2:00 at the First Baptist Church November is American Indian Heritage Month Nov. 2 Fall back one hour. Daylight Savings Time Ends. Nov. 4 VOTE!!!! Nov. 5 10am. Free tour of Altadena’s Mountain View Cemetery, Mausoleum and Art Gallery. Sponsored by the Pasadena Foothills Association of Realtors. Mausoleum is located at 2300 N. Marengo (north of Woodbury). RSVP for the tour to PFAR at 626-795-2455. Nov. 6 Belated grand opening of Webster’s Fine Stationers. 2450 N. Lake Suite B. Join the community with a day of activities and a benefit for the Quality of Life Center. 3:30 is the Ribbon Cutting and the Altadena Chamber of Commerce Mixer is at 5:30. Nov. 8 9am to 12. Free workshop on Veteran’s benefits. Altadena Community Center. 730 E Altadena Drive. Nov. 8 7:30—11pm Robert Kyle performs at Red, White & Bluezz in Pasadena on Raymond and Green Street. www.robertkyle.com Nov. 9 10am Fall Art Festival. Pasadena City Hall,100 N. Garfield. Food court, fun zone, musical performances and art! Free. Nov. 11 Veteran’s Day. Banks and post offices are closed. Nov. 14 8pm Janet Klein&Her Parlor Boys(featuring Altadena’s Ian Whitcomb).Coffee Gallery2029 N Lake,Altadena$20 626/398-7917 Nov. 14 4:00 to 6:30. John Muir High Tailgate Party at Brookside Country Club, 1133 Rosemont, Pasadena. Music from the 60’s, 70’s and 80’s. $40 includes dinner, drink and admission to the Turkey Tussle game at 7:00 at the Rose Bowl. 626-208-1351 or www.jmhsaa.org to purchase online must RSVP by November 7th! Nov. 16 Team Five Acres Pasadena Inaugural Marathon. Runners, walkers and cyclists can join the team. Call Susan Silverman at 626/798-6793 ext. 2279 for more info. Nov. 22 Grand Re-Opening of Macy’s West at 401 S. Lake Ave in Pasadena. Buy a $10.00 ticket from Five Acres and receive a 10% 20% discount on almost everything in the store and Five Acres keeps 100% of the ticket sales. This will also enter you in a chance to win a $500 shopping spree at Macy’s. Call Susan Silverman at 626/798-6793 ext. 2279 for more info. Nov. 27 Thanksgiving Day. Banks, schools and government offices are closed. (Also see Page 3 inside for Nov. 27th events) Nov. 28 4:00pm Old Pasadena Holiday Celebration. Located on Holly Street between Raymond and Fair Oaks. Kids can play in 30 tons of real snow, see live reindeer, ride a train, enjoy live music in the winter playground. Santa arrives at 6:00pm to light the Christmas tree. Bring an unwrapped toy or book and receive a FREE photo with Santa at One Colorado from 6:30pm to 9pm. 626/564-1066