Oxnard CA Real Estate and Community News

Office Exclusive - 6180 Crossbill St Ventura CA 93003 

Office Exclusive - 353 Tirre Ct, Santa Paula, CA 93060

 

 

Office Exclusive - 230 S Ojai St Santa Paula CA 93060

 

     

 

 

Dec. 11, 2017

Episode 8 of the Jose Luiz Morales Show: Fire Insurance

Welcome back to the Jose Luiz Morales Show. Today for our eighth episode, I’m joined by guest speaker Luis Chit from Farmers Insurance to talk about the recent fires we’ve seen here in the state of California. It’s important to always be prepared for the unexpected. That’s why we covered a number of questions today.

Here’s a list of the items we went over and where you can find them in our video:

1:21: What are the first steps a person should take from an insurance perspective after their home has sustained fire damage?

 

2:34: Where can people find insurance company information?

3:38: The importance of understanding your coverage.

 

6:18: Which policies include fire insurance?

 

7:24: What is included in more advanced fire insurance policies?

 

10:04: How long does it take to receive compensation when you file a claim?

 

11:51: Explaining “loss of use.”

13:20: What’s a typical deductible?

 

14:07: Is coverage the same for investment properties?

 


It’s important to always be prepared for the unexpected.


 

16:22: What happens if you are uninsured when a fire occurs?

 

17:55: How to prepare for a fire and fire safety tips.

 

19:28: Advice for comparing insurance products.

 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Dec. 5, 2017

What Is Your Level of Commitment?

My mentor and I have talked about how committed you are to whatever it is you are doing for a long time. When it comes to commitment, there are three levels of action you can take.

 

The first level is retreating. You are moving backward, not forward. Instead of improving the quality of your life, you are adopting certain habits or taking certain actions that cause you to move back.

 

The next level of action is simply the average level of action. This is the level most people operate at. You are simply doing what everyone else is doing. If the average real estate agent comes in at 10 o’clock, leaves at five o’clock, and closes four or five deals a year, that is all you are doing. You are not doing anything more than what is asked of you.

 

Napoleon Hill always said that the way to increase your pay is to always offer more than what you are currently being paid for. You are not going to make any more money operating at the average level of action.

 

If you want to earn more money, what are you doing to add more value to your current job? When you start adding responsibilities and services, then you are going to increase your self-worth in the company and move up.

 


Are you willing to do whatever it takes to improve your life?


 

The final and rarest level of action is also the most rewarding—the extreme or massive level of action. In this level, you are doing whatever it takes to move forward and get the job done. You are not complaining; you are focused on the end goal. That is the most powerful level of action.  

 

As a real estate agent, operating on this level of action means you are the first person on the phones each morning and the last one to leave at night. If a client has not answered your calls, you are going to their door and introducing yourself.

 

Whether you are a business owner, an employee, or a volunteer, what can you do to add more value and operate at the massive level of action?

 

Are you willing to do whatever it takes to get your career and your life to the next level?

 

I hope these questions help you evaluate what you are doing to improve your life and your career. If you have any real estate questions, please don’t hesitate to give me a call or send me an email. I would be happy to help you!

 

Posted in Real Estate News
Nov. 13, 2017

A Great Success Story From One of My Newest Agents

A few months ago, one of my new agents asked me a great question. He said, “What’s the number one reason that agents fail?” I thought about it and replied, “Because they give up. They don’t take the time to go through the struggle that it takes to become successful.”

 

This agent chose to embrace the struggle. He’s been coming in and working hard every single day and doing everything that he needs. After grinding hard for the last three months,  I’m proud to say that he has just opened up his first escrow. His first deal is with an all-cash buyer with no contingencies. That deal is going to close in about 10 days.

If he would have listened to that little voice in his head that doubted him, he would have never stuck around long enough to reap the benefits of what he’s been doing. Now he has more confidence, understands the process better, and he’ll continue to have even more successful transactions in the future.

 


His deal will close in the next 10 days.


 

When the going gets tough, don’t quit. Work harder, because nothing can replace that. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

Posted in Real Estate News
Oct. 19, 2017

Why You Should Always Over-Promise and Over-Deliver

Recently I’ve been listening the audiobook version of Grant Cardone’s "Be Obsessed or Be Average" and even after just 20 minutes I can already tell that this book is going to rank within my top three favorite books of all time.

There’s one line in particular I want you guys to hear, which is: “Always over-promise and over-deliver.” Most people will tell you to under-promise and over-deliver, but this isn’t what Grant Cardone recommends.

This subtle shift in mindset can make such a big difference. According to Grant Cardone, the concept of under-promising and over-delivering is deceptive and a weak way of thinking.


A subtle shift in mindset can make such a big difference.


 

If you haven’t listened to this book, you absolutely need to. I highly recommend it.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Posted in Community News
Sept. 28, 2017

How Staying Broke Could Make You a Millionaire

Recently, I read “The Millionaire Booklet” by Grant Cardone, which went over eight key principles to becoming a millionaire and doing it quickly.

There were two main ideas that really stuck with me, and I want to share them with you today.

First of all, he talked about adding different sources of income that complement what you are already doing. For example, as a real estate agent, you could invest in real estate, flip properties, or take on property management to add different sources of income and expand the amount of money you make.

The second concept that stuck out to me might surprise you. You should stay broke. Instead of saving just for the sake of saving, save money to invest.

Take 20% to 30% of your income, put it in a special savings account, and look for investments for that money. Don’t just let that money stay stagnant in the bank.


Instead of saving for the sake of saving, save in order to invest your money.


 

 

I’m always investing my money into real estate. I own three rentals right now. Once I find the right rental property to purchase, I have to spend all of the money that I’ve saved up, leaving me broke again. That just gives me another reason to go back to work and find additional income!

 

If you have any other questions about this topic, just give me a call or send me an email. I would be happy to help you. In the meantime, stay broke!

Posted in Real Estate News
Aug. 30, 2017

Why Talk to a Mortgage Professional Before Buying an Investment Property?

As soon as the thought enters your mind about buying an investment property or a primary residence in Ventura County, you should meet with a mortgage professional—up to a year in advance.

A mortgage professional will take a look at your situation and your income and provide you with options for either an investment property or a primary residence. They will let you know how much you qualify for, and if you don’t qualify they’ll let you know what you need to do to do so. If you’re looking for an investment property, they’ll let you know how much you would qualify for regarding duplexes, triplexes, and fourplexes. 

Why meet a year in advance? Sometimes we may want to purchase something, but we don’t know exactly what we have to do to purchase it. I always meet with a mortgage professional up to a year in advance and ask them questions about what I have to do to qualify for a property, how much my payment would be, and what my interest rate would be like. 

This way, if I don’t qualify over the next year, they’ll tell me what I need to do and I can correct that. In addition, by meeting with a mortgage professional up to a year in advance, you’re prepared. If you meet with one today, for example, and they tell you you’re qualified, that’s a huge benefit because good investment properties are rare and go fast once they enter the market—usually a matter of days. 

So, be ready or know what you have to do to be ready so once that great opportunity comes along, you can pull the trigger. 

It’s also important to know what your options are. Every time I close on an investment property, the next thing I do is have a conversation with my lender about what I need to do to purchase my next investment property. Every single time, no matter what it is, I know what my options are. 

 


Be ready so that once a great opportunity comes along, you’ll be ready to pull the trigger.


 

For example, my mortgage professional told me that because I own four residential properties, I have to make a minimum 25% down payment and have a certain amount of reserves for my next property. Now, if I come across an opportunity I think would be good for my investment portfolio. 

My dad always told me that the ability to be able to borrow money at a lower interest rate for assets is one of the biggest benefits of living in this country. By being able to do that, you can grow your wealth. Who wouldn’t want to borrow money at 4% for 30 years? The only way you can accomplish this, though, is by meeting with a mortgage professional. They’re the key to getting loans from a bank and being able to qualify.

To end this week’s segment, I want to answer a question I received from a man named Jeff. Jeff asks, “What do I need to have to find a rental with 18% return on investment?”

You have to be ready, Jeff. Your area is pretty high in price, so you may have to search in other areas—maybe not where you live, but somewhere with a really high rental market that features lower prices. 

If you have any questions about this topic or you’re thinking of buying or selling a home, don’t hesitate to give me a call or send me an email. I’d be glad to help you. 

 

Posted in Community News
Aug. 30, 2017

Are You Prepared for a Good Deal?

When I speak with buyers, people tend to believe that prices have gone too high for our current market. These same people are the ones who then go on to say that instead of making their move now, they’re going to wait things out in the hope that prices will drop.

As someone who consistently purchases properties and is always in the market to buy, I can tell you that timing the market is more difficult than it sounds. Not only is it difficult to know when the market is at its peak, but it’s also hard to be sure it’s at its lowest. It’s true that corrections are easier to spot—but you can never really know when one is going to happen. A correction can happen at any moment, whether that’s today or 10 years from now. 

Instead of trying to time the market, my real estate strategy is to act. There’s a good deal in every market. Instead of trying to wait, I think it’s smarter to find out how best to take advantage of any given situation. Homes that sell quickly tend to be the best deals. Being in a place where you are always looking will better position you for success than waiting around for the right timing. 

I spoke once with a client who believed prices were too high for him to put his home on the market. However, when the market drops, your value drops too. Waiting around because you think the market is too high for you to sell will ultimately cause you to make less on the sale of your home. 

 


There’s a good deal in every market..


 

What I proposed to this client is that instead of waiting, he should remain ready to make the best of any opportunity that could come along. The market drop of 10% to 15% would ultimately be cancelled out by the resulting value drop, which would be approximately the same percent. 

To help illustrate my point, I gave this client the example of a property I’m in escrow on in Oxnard right now that was listed at $260,000. When I ended up closing, I did so at $275,000. My final closing price actually closely mirrors what properties were selling years ago. This proves my theory that there is a good deal in every market. None of us have a crystal ball that will tell us when the market is going to crash. 

So what can you do to make sure you’re ready when the right opportunity comes along? First of all, you must know that you are qualified for a loan. You need to understand how much you’ll need, what your terms would be, and whether you can realistically achieve your goals. 

A couple of weeks ago I got a call from a woman who I was trying to work out a deal with a year ago. At the time, she wasn’t ready to sell. When she called me recently, she told me she was ready to sell. In case an opportunity like this ever arose, I had already met with a commercial loan officer. I ended up closing on this property for just $110,000. Good deals truly do exist on the market, but they don’t last. You absolutely can’t hesitate.

If you don’t make a move on a good deal, someone else will. You can’t focus on the little costs. $1,000 or $2,000 isn’t worth worrying about. In the end, a good opportunity and a good investment will be worth it. 

In 2012, people were predicting that a lot of shadow inventory would be coming on the market and causing it to drop. Interestingly enough, the opposite happened. The market took off with limited inventory. Just last year before the election, a similar thing happened. People were predicting corrections that simply didn’t come.

Personally, I never make any decisions based on what the market is doing. The market is cyclical and always will be. Investment decisions should be based on the numbers. Last year I bought a rental property that I felt I paid a little too much for. A couple years later, though, I ended up buying another property at a similar point. After analyzing the numbers, I realized it still made sense. The numbers on a month-to-month basis made sense and were ultimately what I based my decision on. 

If you’re still renting because you’re waiting for the market to correct, you could actually be losing money from what you’re paying in rent. Instead, you should always be on the market looking for a better deal.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

 

Posted in Real Estate News
Aug. 14, 2017

How to Handle Discouragement From People Who Care

Recently, I got a call from a friend who is interested in moving forward with investing in real estate but has been repeatedly discouraged by the people who care most in her life such as friends and family. 

She has money saved, is ready to invest, and wants a better future for herself. So, why is it that the people around her have been so adamant against her moving forward? She’s even begun to wonder if her friends and family don’t want her to succeed.

However, what I told her is that the opposite is true. The people that care will want to keep you safe. They will want to protect you from anything that might not go well in your life. Sometimes, advice is given from an overprotective perspective.

However, real estate is not as big a risk as many might believe. If you understand your situation as well as the circumstances of the current market, investing in real estate can be a very good thing. 

It’s my genuine opinion that these people truly care. If you never invest or take risks you will be safe, but you will miss out on great opportunities. My best advice is to always invest based on cash flow. There are a lot of cost associated with selling an investment property, so my investment philosophy has to do with running the numbers.

 


Decisions should be based more on numbers than on feelings.


 

Find the positive difference between the cost of your mortgage and how much you can rent out a property for. This number should give you some solid ground on which to base your decision. 

Ask yourself if this is a slim or a wide margin, and whether it will be an asset for you in our Ventura County real estate market. If you have a gap of about $1,000 or more, you’ve got plenty of cushion in case something goes wrong.

Also, worry more about what an asset is producing for you month to month than about appreciation. In terms of percentage for cash flow, I usually look in the range of 15% and above. Most of my properties are producing at least 19% to 20%. 

Decisions should be based more on numbers than on feelings. To be truly “economy-proof,” you should base your investment on cash flow instead of equity.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon. 

 

Posted in Marketing Plan
Aug. 1, 2017

How to Effectively Invest Your Capital in Ventura County Real Estate

Recently I’ve had a couple of conversations with clients who are considering either renting or selling their primary residence. However, renting out or listing your Ventura County home for sale is not a simple process. 

There are many things that you must consider in either of these situations. For instance, one of the first things I’ve been asking clients is to think about their long-term plan.

If that plan is to rent out a property indefinitely and keep it in your investment portfolio for a number of years, you should consider capital gains taxes. 

A primary residence that is rented out for three or more years becomes an investment property. This means there are different tax implications that come into play. 

If you would ever happen to want to sell that residence after it’s become an investment property, you would have to pay capital gains. 

However, doing a 1031 exchange you could help you avoid some of these taxes. This is a little more complicated, though. 

Something I recommend to clients is to look at whether the market is in a place where it is likely to appreciate over the next few years. In this case renting out a primary residence for less than three years makes sense.

For example, let’s say you were faced with this decision in 2014. Assuming you rented out the property for less than three years and sold right before that mark, then it would have been a good decision. 

 


A primary residence that is rented out for three or more years becomes an investment property.


 

However, if you had made this same decision in 2007 you most likely would have been forced to hold onto the property for more than three years. 

Another thing to consider outside of the length of time you plan on renting out a property is the opportunity cost of your capital. 

Let’s say your primary residence is well-maintained and in a good, safe neighborhood. You have to determine whether it makes sense to rent it out or to take the money out of the primary residence and invest it in a duplex, triplex, fourplex, or something that has better rental potential and could earn a higher return. 

In short, the question to ask yourself is, “What is the opportunity cost for my capital?”

I had a couple of sellers last year who owned properties in River Park and Oxnard. After running the numbers of what they were going to rent the property at as well as what they were going to collect in rent, I found that after all expenses they were going to have about $200 of positive rental income on their properties. 

With this in mind, I asked them if they could perhaps take the $100,000 to $200,000 they had in equity and buy additional property to earn a better return by investing in another asset.

In fact, I have personal experience with this situation. On one of my properties I was earning $200,000 a month and had $100,000 worth of equity tied up in it. So instead of letting it sit, I took that $100,000 and invested it into a fourplex that now earns me a better return. 

Making the best financial decision ultimately relies on asking yourself these two questions.

If you want more information or have any other questions feel free to give me a call or send me an email. I look forward to hearing from you, soon.

 

Posted in Real Estate News
June 20, 2017

Lessons From "The Big Short"

I just saw the Big Short this week, and it got me thinking about some things.

A lot of the time when we’re making a decision, there’s a lot of people who will tell us not to do something. They do that because they want to protect us from doing something that will hurt ourselves.

There have been times in my career where I’ve had clients who were excited about buying a property and when they go to open up escrow, they get cold feet. This could be for a number of reasons - their payment ends up being higher than their current rent, for example. 

One instance that comes to mind is a client who opened up escrow on a property and then got cold feet because he received advice from people close to him that the market was going to continue to go down, and that maybe it wasn’t a good time to buy. As it turns out, that same property that he didn’t end up closing on appreciated more than $100,000 in the years since.

There are a few key things that I took away from this movie. The first is be careful who you’re getting advice from. If you’re seeking advice, look for the people with experience in what you’re wanting advice for. If you want to get into rental properties, talk to someone with experience in that.

 


If you’re seeking advice, look for the people with experience.


 

The second key here is to make your decisions based on the facts. Look at everything logically and make sure that you’ve got all the information you need to make a great decision for yourself. 

If you’ve got any questions related to this topic or you’re looking to buy or sell a home in Ventura County, please give me a call. I’d be happy to help!

 

Posted in Real Estate News