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An Insider's Guide to North San Diego County's Coastal Real Estate
Jim Klinge, broker-associate
858-997-3801
klingerealty@gmail.com
Compass
617 Saxony Place, Suite 101
Encinitas, CA 92024
Klinge Realty
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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Jim Klinge
Cell/Text: (858) 997-3801
klingerealty@gmail.com
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011


Category Archive: ‘Real Estate Investing’

Brava Closed

Brava closed yesterday, after a whirlwind of activity – here are the MLS stats:

We received 13 cash offers, and went through five escrows to get one to stick.  Each time one would fall out, I went back to all of the other contenders to give them another chance to buy it.

Buyers would say that they had reviewed what’s needed (new kitchen, 3 bathrooms, windows, flooring, etc.), and were comfortable with the project.

Of the four that cancelled, three dropped out altogether once they did more extensive research.

Only one tied up the property, and then, after a few days, tried to work me down on price.  They are looking for the desperate sellers and agents, and hope to convince you to drop another $20,000+ just get it over with.

It was Mr. T who tried to get me to cave, and he had agreed to pay $665,000.  After further review, he wanted to drop the price down to $645,000.

But instead of just taking it, I went back around to all the other contenders and offered them another opportunity.

A different buyer agreed to pay $655,000, and Mr. T. held his ground, and backed out.  But then the $655,000 guy cancelled, and in the next round Mr. T wanted to drop again, this time down to $635,000.

I got another buyer to do better.

We closed at $650,000.

It’s more work to keep all the contenders engaged, and keep tempting them to buy the house during our five-week adventure.  But this is what I do for my sellers – I’m going to everything I can to get you that extra $15,000.

Posted by on Dec 11, 2018 in Flips, Jim's Take on the Market, Real Estate Investing, Remodel Projects, Why You Should List With Jim | 5 comments

Instant ADU

If baby boomers have to sell their home because they need the money, this will be a great alternative – and could help to dry up the housing inventory, especially if you can build an ADU for less than $50,000.  Homes with bigger yards would be more valuable too.

Link to Article

Today, Samara is announcing a new initiative called Backyard, “an endeavor to design and prototype new ways of building and sharing homes,” according to a press statement, with the first wave of test units going public in 2019.

It means Airbnb is planning to distribute prototype buildings next year.

The name “Backyard” might imply that Airbnb just wants to build Accessory Dwelling Units (ADUs), those small cottages that sit behind large suburban houses and are often rented on Airbnb. Gebbia clarifies that is not the case. “The project was born in a studio near Airbnb headquarters,” he says in an interview over email. “We always felt as if we were in Airbnb’s backyard–physically and conceptually–and started referring to the project as such.”

Backyard is poised to be much larger than ADUs, in Gebbia’s telling. Yes, small prefabricated dwellings could be in the roadmap, but so are green building materials, standalone houses, and multi-unit complexes. Think of Backyard as both a producer and a marketplace for selling major aspects of the home, in any shape it might come in.

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Posted by on Dec 1, 2018 in ADU, Boomer Liquidations, Boomers, Homeless Cure, Jim's Take on the Market, Modular Homes, Real Estate Investing, Remodel Projects | 1 comment

La Costa Fixer w/Granny Flat

For those who want to build out a project your way, have I got a deal for you!

The architect drew up plans for a 3br/3.5ba house plus a 1br/1ba granny flat, and they just needs the finishing touches. Last sale nearby was 7503 Solano St for $975,000 in June.

Will not qualify for conventional financing – no kitchen or baths currently:

Youtube walking tour here:

The address is 7516 Brava St., Carlsbad, listed for $699,000.

Call or text Jim today! (858) 997-3801

Posted by on Oct 25, 2018 in Bubbleinfo TV, Carlsbad, La Costa, Real Estate Investing, Remodel Projects, Why You Should List With Jim | 5 comments

iBuyer Flipping in SD

There hasn’t been much concern around San Diego about the ibuyers because they have been cutting their teeth in the lower-priced and more homogenized housing markets, where valuations are easier.

Hat tip to the reader who sent this in though – Offerpad did purchase a Talmadge home in December.  They took title as Offerpad, and they used their regular Gilbert, AZ address too:

Link to Zillow listing

They paid $564,000, and tried all year to do better:

But the market didn’t come their way, and they ended up selling for less:

Even if they get a discounted commission (two different agents were involved, and the buyer’s agent got 2.5%), losing money on flips has to get old quickly!

A softer market should cause more of these guys to ‘self-sideline’.

Posted by on Oct 24, 2018 in Flips, ibuyer, Jim's Take on the Market, Real Estate Investing | 3 comments

Tips For Landlords

Being a landlord is everything it’s cracked up to be, and tenant rights in California are extreme.  Here’s my favorite from the list:

7. Check Social Media

Landlords should always use a third party background and credit checking service. They should never skimp on checking references. Just like when you apply for a job and HR takes time to Google the potential new hire, we always Google our prospective tenants. You don’t have to agree with their lifestyle, but it’s a good idea to see what they post publicly. – Tanya Delahoz, Dwell Summit

Here are the 11 tips from the AAOA:

Link to Article

Posted by on Sep 29, 2018 in Jim's Take on the Market, Real Estate Investing | 0 comments

“Bizarro Desert Wonderland”

Were you thinking you could always move to the desert? H/T daytrip:

Link to Full Article

Mark Grden was looking for peace and quiet when he bought his house a half-mile from the main entrance to Joshua Tree National Monument in 1998. And for years, he found it.

“I used to sit out on the porch and watch bobcats creep past under skies filled with stars, bats and owls,” he said. “Neighbors knew each other and kept an eye on each other’s property.”

But over the past two decades, this otherworldly landscape has gone from a destination for hikers and rock climbers to an international attraction luring 3 million visitors per year — overwhelming the area’s craggy campsites, low-slung motels and Grden’s once-sleepy community.

“Now, I’m surrounded by Airbnbs filled with vacationing strangers who seem to think anything goes out here,” he said, shaking his head.

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Posted by on Jun 5, 2018 in Jim's Take on the Market, Market Buzz, Real Estate Investing, Thinking of Buying?, Thinking of Selling?, This Is America | 6 comments

Flippers and The Bubble

Excerpted from this NPR article:

Link to article

New research and data suggest that the practices of house flippers fed the bubble of the early 2000s. Much of the blame for the housing crash has fallen on subprime borrowers and people who bought and lived in homes they couldn’t afford.

But researchers are now coming to understand that a big part of the problem was people with better-than-average credit scores who owned multiple homes — not subprime buyers, but real estate investors, landlords and flippers.

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Posted by on Apr 18, 2018 in Flips, Jim's Take on the Market, Real Estate Investing | 1 comment

Regulating SFR Investors?

Now that the big investors have virtually stopped buying homes, a legislator wants to find a way to regulate them.

Typically the term “institutional investor” refers to private investment firms that buy dozens of residential properties with the explicit aim of generating a steady income stream through rentals. Often they invest the money of wealthy individuals and public pension funds, like those established for California state workers and teachers.

The best example is Blackstone, a publicly traded Wall Street firm that barrelled into the country’s single-family home market in the depths of the Great Recession in the late 2000s. Through its residential investment-focused subsidiary, Invitation Homes, Blackstone is now the largest owner of single-family homes nationwide. In California, they own about 13,000 homes.

But firms such as Blackstone have stopped buying wide swaths of California homes. According to the real estate data firm ATTOM Data Solutions, which defines institutional investors as entities that buy 10 or more homes in a given year, institutional investors accounted for less than 2 percent of the state’s single-family home and condo sales in 2017.

That’s a pretty steep drop from as recently as 2012, when institutional investors accounted for about 7 percent of sales.

Why the decline? California no longer has a glut of cheap houses that can be easily gobbled up in foreclosure auctions. A sustained economic recovery and a lack of construction of new housing has sent housing prices skyrocketing. It’s now too expensive for institutional investors to buy lots of California homes. Blackstone’s Invitation Homes bought only 82 California houses last year.

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Posted by on Apr 10, 2018 in Foreclosures, Foreclosures/REOs, Jim's Take on the Market, Local Government, Real Estate Investing | 3 comments