In this latest episode of “The Morales Group Podcast,” we’re joined by special guest Joe Nuñez, an attorney practicing real estate law, estate planning, and civil litigation at Westford Law Group. Joe shared his insight regarding what you, as a consumer or a landlord, need to watch out for when doing a commercial real estate lease in this ever-changing COVID-19 environment. It’s important to know the types of leases available, everything that’s outlined in the tiny print, and best practices. 

There are different types of commercial leases out there, and sometimes, tenants sign a specific one thinking that it’s their only option. “That’s nonsense,” Joe said, “It’s a contract, and the contract can be negotiated. It may be the landlord’s base contract, and that’s fine, but that doesn't mean the tenant doesn’t have the right to negotiate some of those terms.” 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to topics that interest you most: 

2:08 — The different kinds of commercial leases available, and lease expectations 

7:32 — Joe recounts a client’s nightmare scenario (without disclosing names, of course) 

13:11 — Defining the term ‘junior anchor,’ and the importance of knowing your leverage 

15:53 — Understanding percentage leases

18:36 — Are there certain lease types that better suit certain types of enterprises? 

25:16 — Why tenants should try negotiate an exclusive use for their business and build options

28:50 — Do you have a force majeure clause? 

33:29 — The continuous operation clause 

38:09 — Who bears the responsibility for keeping a building operational, and is that negotiable? 

46:07 — Recourse versus non-recourse

51: 30 — COVID’s impact on commercial real estate and solutions for those struggling 

A huge thank you to Joe Nuñez for helping us make sense of commercial leases; hopefully you found this discussion as enlightening as I did. If you have questions about anything mentioned in this blog or have real estate needs I can assist you with, reach out by phone or email. I’m always happy to be of service! 

Welcome back to episode 39 of “The Morales Group Show!” Today, Mike Figueredo, the owner of Viridi Construction, joins me to discuss one of my favorite real estate topics: constructing ADUs (accessory dwelling units). Mike works on ADUs every day, so he’s a specialist in this field. Today he’ll provide us with valuable information and give us some insight into the ADU process from the construction side.

Learn all you need to know about building ADUs by watching the video above, or else feel free to use the timestamps below to navigate the conversation at your leisure. 

3:00—What exactly is an ADU?

6:00—The difference between a JADU and an ADU

7:05—Can you convert a condo or townhome to an ADU?

8:25—Can you convert a single-car garage to an ADU?

9:19—Financing ADUs

10:53—Secured loans versus unsecured loans

15:05—What’s the process look like for someone thinking about building an ADU?

17:00—How long does it take the architect to submit the plans to the city?

23:30—The cost of a typical permit, plus some tips about to avoid being taken advantage of

27:40—What modifications are required to convert a two-car garage into an ADU?

31:30—What sort of costs can people expect to crop up during the process?

33:15—Is there a benefit to someone trying to manage this project on their own versus hiring a professional?

38:40—Is it more expensive to convert a two-car garage into an ADU or to just do ground-up construction?

40:00—What is a reasonable price per square foot for the standard plan?

43:08—Could someone who converted a one-car garage into an ADU add onto it to make it larger?

44:20—Is the ADU process or the new construction process faster?

48:30—Will an owner have to start from scratch if an aspect of their ADU isn’t legal?

49:35—Will an ADU change the property taxes for the homeowner?

50:55—Can you have separate meters for an ADU?

53:35—Do ADUs come with a separate address from the main property?

54:30—Wrapping up the conversation

Many people don’t think about ADUs not because they don’t want to build one, but rather because they don’t understand the process they’d have to undergo. That’s why this conversation with Mike Figueredo is so important—he’s helping people move one step closer to making more informed decisions about the kinds of things homeowners can do with their properties.

To learn more about the ADU construction process, visit www.ViridiConstruction.com or call (833) 484-7434.

Don’t forget to check out my blog and Facebook page for regular videos and advice about all things real estate! In the meantime, if you have any questions about buying, selling, or investing in Ventura County real estate, don’t hesitate to reach out to the Morales Group.

I got together for an exclusive interview with Sam Newell, an expert in Commercial Real Estate. He shared the number-one mistake all real estate investors make. We discussed a couple of other strategies for Commercial Real Estate, including tax benefits, debt coverage ratio, and more! To hear our whole interview, watch my latest video. 

Escrow officer Danita Barroso and I answer your escrow FAQs.

I recently had the pleasure of sitting down with one of my favorite people in the whole wide world, Danita Barroso, who works with Contact Escrow as an escrow officer. She helped me tackle some of the most common questions I receive relating to escrow, such as, “Do I have to pay my mortgage or property taxes if I’m currently in escrow?” and “What does it mean when an escrow officer sends me a ‘net sheet’?” 

From addressing the real threat of wire fraud to the importance of loan documents, Danita and I cover it all. 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure: 

1:34 -  Defining escrow—what does it mean to be a mutual third party?

3:33 - What ‘going into escrow’ looks like from the buyer’s and seller’s perspectives

4:53 - The importance of the earnest money deposit in a real estate transaction 

6:03 - What happens after a buyer submits their earnest money deposit?

7:34 - What type of documentation does a seller receive at the beginning of the escrow process?

9:27 - What do buyers receive at the beginning of the escrow process?

10:28 - The next big steps in the escrow process after documents are filled out and returned 

11:34 - What exactly is a seller’s ‘net sheet’?

12:57 - Understanding the risk of wire fraud 

15:00 - How are loan documents typically signed, and how important are they?

17:15 - After the buyer safely wires the money to the escrow officer, what happens next?

19:00 - What options does a seller have for receiving the money once escrow closes?

22:34 - What are the types of fees someone could see on their net sheet?

23:38 - Do you have to pay your mortgage or property taxes if you’re in escrow?

26:27 - Calculating escrow costs

28:00 - Who selects the escrow officer?

29:00 - What type of transactions require an escrow? 

35:10 - Wrapping things up 

Hopefully, you found our conversation enlightening. Reach out to Danita Barroso and the Contact Escrow team—they do amazing work. As always, reach out to me if you have any real estate questions or concerns. I’m here to help!

Here’s everything you need to know about mortgage forbearance.

We’re back for Episode 33! Today, we're joined by special guest Jason Gordon of Amerifirst Financial. A lot of people have been asking me lately about the difference between mortgage forbearance and mortgage forgiveness. Jason was kind enough to take time out of his day to give a fantastic, wide-ranging presentation on this topic and all of the other implications of mortgage forbearance in the real estate and mortgage worlds.

Feel free to follow along in the video above or use the timestamps I’ve provided below to navigate the discussion at your leisure:

1:35- A quick background on Jason’s career and accomplishments

5:30- How our current market compares to the previous housing crisis in 2008

8:14- Identifying the players and terms involved in a mortgage transaction

11:20- What do mortgage servicers actually do and how do they utilize loss mitigation?

16:00- The definition of forbearance

18:14- The difference between forbearance and deferment

19:44- The dangers of forbearance repayment

22:00- The debt-to-income implications forbearance could bring with it

25:55- Credit implications of forbearance

27:10- Why are there different types of forbearance agreements?

33:20- How unemployment is compounding the issues for mortgage servicers, and how their leverage is different from what they had in 2008.

41:00- Ripple effects that have caused changes to mortgage programs

46:35- Which mortgage programs have been eliminated for the time being?

48:20- The impact of these changes on divorcing homeowners

54:00- How to reach Jason if you have any questions

56:00- Wrapping things up

If you have any additional questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you!

David Albanese joins me today to take a look at two important COVID-19 relief programs designed to help America’s small businesses.

As some of you may already be aware, the Small Business Administration launched a COVID-19 disaster relief program that can give eligible business owners an advancement of $10,000 and a subsequent loan to help them stay afloat. How is the money disbursed? What challenges are business owners facing when they try to apply through a bank’s SBA representative? 

David Albanese, a local business owner, agent, and investor, has helped several business owners navigate this process already. He and I tackled a lot of the questions swirling around this program and also the Payroll Protection Program (PPP). 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure: 

3:20 - Understanding the disaster relief program offering up to $10,000: Who actually qualifies?

6:00 - How the money is disbursed 

11:30 - How the Small Business Administration (SBA) is dealing with the overwhelming number of applications 

15:34 - The key to surviving this pandemic as a small business and why this relief program is so important

19:45 - Explaining the Payroll Protection Program (PPP) 

28:19 - Can the PPP loan be used for anything other than payroll?

32:41 - Are you able to apply more than once if you have multiple companies? 

39:00 - Can real estate agents apply for these programs?

43:50 - How we use these programs to help others and grow our networks in the process

45:00 - Wrapping things up 

If you have any questions about what was discussed in this message, or if you’re interested in buying or selling a home soon but aren’t sure how to proceed in these times, reach out to us. We’re always here to help, and we look forward to hearing from you. 

My recent discussion with Frank Salazar of Gem Mortgage covered many bases, from mortgage relief, to the loan application process, to the pandemic’s wider impact on the market.

Recently, I was fortunate enough to sit down with Frank Salazar, co-owner and partner in Gem Mortgage, to discuss mortgage relief in the wake of the pandemic. Together, we explored the implications of the CARES Act, and he offered advice as to what may be in a homeowner’s best interest right now (depending, of course, on their specific circumstances). Homeowners should ask their loan servicer two important questions: “What is my repayment plan?” and “Will my credit score be negatively affected?” 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure: 

2:24 - Does one have to make their mortgage payment? Explaining the CARES Act

5:00 - Are all servicers mandated to handle forbearances in the same way? For example, what happens when a forbearance period of 180 days ends?

6:55 - What determines whether a loan is federally backed or not? 

9:10 - Definition of a forbearance, and how servicers are restructuring the payments from which you’re temporarily excused

10:50 - What you should get in writing from your servicer 

12:53 - If hundreds of thousands of people are missing their mortgage payments, what effect will that have on the market?

14:28 - Why servicers are tightening up requirements 

16:09 - Fed funds rate vs. mortgage interest rates 

17:47 - We’re still seeing historically low interest rates 

19:50 - Does the CARES Act apply to investors? 

23:49 - How the coronavirus is impacting renters and landlords

26:45 - Why the ‘honor system’ is of the utmost importance right now 

29:29 - How real estate agents are helping clients with technology 

33:30 - What timelines should borrowers be expecting these days regarding financing?

35:55 - How loan officers are triple-checking applications 

38:22 - Are there delays with appraisers?

40:10 - Handling fears of falling out of escrow 

45:30 - Wrapping things up/final thoughts

If you have any questions about mortgage relief or real estate in general, please call or email us. We would love to help you.

If you’re thinking of buying a home, your first step should be to talk to a mortgage professional.

From time to time, friends and family ask me an important real estate question: “What's the first step I have to take when buying a house?”

My answer is to talk to a mortgage professional. The reason I recommend doing this is they’ll look at your finances, credit score, income, and debt, and tell you what you can qualify to buy and what your monthly mortgage payment will be. If you don’t qualify for a mortgage, they’ll tell you why and formulate a plan to help you eventually buy a home. Whether you’re buying in six months, a year, or some time beyond that, talk to a mortgage professional way in advance. 

Also, don’t disqualify yourself. A lot of people convince themselves they don’t qualify because their credit score isn’t that great, or they haven’t been at the same job for two consecutive years, or they have student debt, etc. Once we have these people meet with a mortgage professional, though, you’d be surprised at how many of them do qualify. Or if they still don’t qualify, they only need to do one simple thing to change that. 

Even if you’re not planning on buying a home until the next year or so, if you talk to a loan officer and get qualified now, you can pull the trigger if you come across a killer deal on the market. 

One of the reasons I’ve been able to build a $7 million real estate portfolio and purchase 41 properties is I’m always ready. Each time I buy a property, I ask a loan officer what I have to do to purchase the next one. I may not be financially (or emotionally) ready at the time to make that purchase, but I do know what I have to do to get there. 

"I recommend getting yourself ready now so you can pull the trigger the moment you see a good opportunity."

Early last year, I told my wife to refinance some of our investment properties and pull whatever equity we could from them. When she asked why, I told her that I wanted to be in position if a good opportunity arises. At that time, nothing on the market caught my eye, but shortly afterward, a 25-unit apartment in Oxford came on the market. We were able to take the initiative ahead of time, make an offer for it, and close on it. 

A lot of people wait until they see a good opportunity to start the qualification process, but I recommend getting yourself ready now so you can pull the trigger the moment you see a good opportunity. 

In my case, had I not refinanced some of my properties beforehand, I might not have been as confident making an offer for that apartment complex because I wouldn’t have known how much equity I could gather. Not only that, but I might’ve lost out on it to someone ready to buy.

If you’re anything like me, you want to be ready when a good opportunity comes along, so talk to a mortgage professional now and make sure you don’t miss out on a great home. 

As always, if you have any questions about buying, selling, or investing in Ventura County real estate, don’t hesitate to reach out to the Morales Group. I’m here to help. I also invite you to visit my blog or Facebook page. Make it a great day!

Welcome back to Episode 27 of “The Morales Group Show!” Today, Tamara Rossie-Melina from First American Home Warranty joins me to answer some of the most common questions she gets about home warranties.

Learn all you need to know about home warranties by watching the video above, or else feel free to use the timestamps below to navigate the conversation at your leisure. 

1:00—What is a home warranty?

1:51—How long do home warranties last?

4:57—Are pre-existing conditions covered under a home warranty?

6:23—If you have an issue covered under the warranty, how do you get it fixed?

10:20—What types of services does First American Home Warranty offer to sellers?

13:41—How do you choose the right plan?

16:48—What’s the difference between a home warranty and home insurance?

20:47—A summary of what is covered under a home warranty if it’s included in your contract

21:51—Should sellers pay for the buyer’s home warranty?

23:35—Why get a home warranty at all?

24:39—Should someone get a warranty for a new construction home?

26:15—Wrapping up our discussion

If you’d like to contact Tamara to address any other questions you have about home warranties, give her a call at (805) 573-0698.

Don’t forget to check out my blog and Facebook page for regular videos and advice about all things real estate! In the meantime, if you have any questions about buying, selling, or investing in Ventura County real estate, don’t hesitate to reach out to the Morales Group.