e-book_the ultimate guide to real estate investing in orange county_sk article_amy sims_jasont

THE

ULTIMATE GUIDE TO REAL ESTATE

investingIN

ORANGE COUNTY

www.amysims.com

AN INTRODUCTION TO REAL ESTATE INVESTING IN O.C.WHAT TYPE OF INVESTOR ARE YOU?WHY INVEST IN PROPERTY?

BUYING THE BEST REAL ESTATE IN ORANGE COUNTYKNOW WHAT YOU CAN AFFORDFINDING A WINNER

LOOK LONG TERMPSYCHOLOGY OF AN INVESTOR: REAL ESTATE IS A BUSINESSWHAT DOES THE NEIGHBORHOOD SAY?

GETTING THE BEST DEAL ON AN INTEREST RATECLOSE THE DEAL

SELLING REAL ESTATE IN ORANGE COUNTYTHE BEST TIME TO SELL REAL ESTATE IN ORANGE COUNTYHOW TO SELL YOUR PROPERTY AT A PROFIT

1. GET THE PRICE RIGHT2. DARE TO DECORATE3. REJUVENATE AND RENOVATE

PERFECT PARTNERSHIP: FINDING THE RIGHT REAL ESTATE AGENT FOR A SALECLOSE THE DEAL WITH A PROFIT

CONCLUSION

BONUS - CHECKLIST - WHAT YOU NEED TO DO BEFORE A SALE

BONUS LEAD MAGNET - REAL ESTATE BUYERS CHECKLIST

O.C. REAL ESTATE MARKET TRENDS FOR 2016INCREASING INTEREST RATESJOBS GROWTH IN ORANGE COUNTYREDUCED INVESTOR INTERESTINCREASED HOME BUILDINGHESITANT BUYERSUNDER-SUPPLY OF AFFORDABLE HOUSINGINCREASING RENT PRICES2016 PRESIDENTIAL ELECTIONS

TABLE OF CONTENTS

AN INTRODUCTION TO REAL ESTATEINVESTING IN

ORANGE COUNTY

Real estate in Orange County has long been a consistent performer for the as-tute homeowner and investor, offering a steady return on investment through the many towns and cities that make our county a great place to live and work. Whether it’s your first home purchase, or part of an expanding investment port-folio, becoming a property owner is a big decision to make, and will require your diligence, commitment, and an understanding that, for the most part, it’s a long haul to accruing wealth.

As with all investments, there’s fruit ripe for the picking, and juicy Orange County gems are ready to be snapped up by the well-educated investor.

THE ULTIMATE GUIDE TO REAL ESTATE INVESTING IN ORANGE COUNTY

01

WHAT TYPE OF INVESTOR ARE

YOU?

In general, there are two types of property investors:

• Active:Purchase real estate for the purpose of generating a passive in-come stream through rental tenancies. Income is generated through a combination of rental income, and tax offsets - since it’s neither a current primary residence nor a vacation home.

• Passive: Live in their property instead of renting it out. Passive investors benefit from inherent capital gains - a result of the increase in a property’s value over time.

AN INTRODUCTION TO REAL ESTATE INVESTING IN ORANGE COUNTY

WHY INVEST IN PROPERTY?

Investing in real estate is fast becoming the most popular form of investment, with purchases in the U.S. rising over 25% in the last 5 years. It makes sense, since a growing number of savvy Orange County investors are looking to diversify their holdings to ride out the increasing financial swings.

No matter what type of investor you are - active or passive - Orange County in-vestment properties are an attractive form of investing for the following reasons:

• Double TheProfit Potential:An investment property offers two main ways for you to achieve financial gain: rent that can provide ongoing in-come; and appreciation in capital value that can result in a profit when the property is sold. There may also be tax advantages available, depending on your financial profile. (Make sure you consult a tax professional for advice.)



• PotentiallyLittleOrNoMoneyDown: Depending on your lender, it’s possible to become a property investor with a relatively small amount of out-of-pocket money. Among your financing options, you may find loans requiring little or no money down. There are even options that let you use the equity from your current home to purchase your investment property.

That said, becoming a property investor is a big decision to make, and it will re-quire diligence, commitment, and a thorough understanding of the Orange Coun-ty real estate market.

The good news is, you don’t have to look far for the right information to get you started on your property investing journey. We’ve collated the most relevant, up-to-date market data and real estate tips from our knowledge bank to create what we like to call:

TheUltimateGuidetoRealEstateInvestinginOrangeCounty.

THE


investingIN

ORANGE COUNTY

ORANGE COUNTY REAL ESTATE

MARKET TRENDS FOR 2016

Enter 2016, and the Orange County real estate market is as strong as it has ever been. With trends favoring buyers in the local property market, there’s good news ahead for the 2016 real estate market.

According to Leslie-Appleton Young, the California Association of Realtors’ chief economist, there will be a growing shortage of affordable homes, and a decreas-ing inventory in the Orange County market. Sounds bad for buyers over the long term, but property purchase prices are expected to follow suit, making housing in Orange County more affordable.

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$400.000

$500.000

$600.000

CALIF.MEDIANHOUSEPRICES

02

ORANGE COUNTY REAL ESTATE MARKET TRENDS FOR 2016

It’s not the best outlook if you’re a seller, but there is a glimmer of hope. Despite the decrease in profits, property sales numbers are forecast to rise, increasing the chance of a sale in the medium to long-term future.

According to Apple-Young, California in general will experience the lowest price gain since 2011 at 3.2% for a detached, already existing home. In comparison, the price gains for the 2014 and 2015 financial years were 9.8% and 6.5% respec-tively.

What’s driving the trend towards a buyers market in Orange County in 2016? There’s a few factors that need to be considered. Here’s what we found.

INCREASING INTEREST RATES

Inflation is on the rise in the U.S., while the rate of real GDP growth dropped last year. This means the price of goods and services is likely to increase in 2016. This indicates it will likely be harder for home buyers to save up for the mortgage down-payment and property taxes. The U.S. Federal Government recently moved to increase interest rates, and this is expected to have a slight impact on home loan borrowing costs as a flow-on effect.

Appleton-Young predicts that 30-year fixed rate mortgages will average at a rate of 4.5% in 2016, compared to 3.8% in 2015. This will not only make borrowing more expensive, but will also limit access to credit due to an increase in unfavora-ble credit scores.


JOBS GROWTH IN ORANGE COUNTY

Despite the negative outlook of rising interest rates, real estate sales are expect-ed to go up in Orange County after the tax return season and spring have passed. The Employment Development Department (EDD) reports that there has been a steady job growth of 2.5% in the county after the Great Recession, and all expec-tations point to higher demand for housing.

Nevertheless, this has not translated to an increase in listings - which have fall-en 2.2% from January 2015. However, according to the A. Gary Anderson Center for Economic Research at the Chapman University, the boost in the residential and commercial construction sectors is expected to spur investment spending and increase new household formations by the end of 2016.


REDUCED INVESTOR INTEREST

Projections reveal that there will be a decline in multiple offers with all-cash deals, and second-home purchases going into decline. Investors will also be shifting more from flipping Orange County MLS-listed homes, to long-term renting. This is due, in part, to a shortage of affordable housing in Orange County, and the lingering effects of the recession.


INCREASED HOME BUILDING

Builders are likely to invest in transient neighborhoods to take advantage of the expected increasing demand for affordable housing, and affordable rentals. While some builders may be seeking to flip their purchases, most will be looking at providing long-term rentals into a demanding property market.


HESITANTBUYERS

According to CoreLogic DataQuick, Orange County home sales fell 6.8% in De-cember 2015 compared to the same period in 2014. At the same time, prices rose by 3.7% compared to 5.1% for the 6-county region. While the numbers look optimistic, buyers will be reluctant to purchase homes in the early months of 2016 due to fears lingering from the great recession. However, the market is likely to pick up in summer and face another decline right before the Presidential Elections in November of this year.


UNDER-SUPPLY OF AFFORDABLE

HOUSING

Orange County is still experiencing a shortage of affordable home listings, and many non-owners preferring to rent rather than buy as a result. 2016 will see an Orange County property market continuing to experience shortage of affordable homes until the construction boom provides fresh stock.


INCREASINGRENT PRICES

There has been a steady influx of renters in Orange County, and the price of rent has consistently skyrocketed over the past 3 years. With higher demand for rental homes and high rental prices, homeowners may be reluctant to sell in 2016. But keep in mind, that higher rental costs only encourage more people to buy their own homes and gain house payment stability.


2016 PRESIDENTIALELECTIONS

This being an election year, there will obviously be lots of excitement and spec-ulation on economic issues, especially regarding borrowing and lending criteria. While the candidates from all political parties have, so far, been focusing on geo-political issues, the end of the primaries may shift focus to domestic issues. Real estate policy is likely to become a major campaign point for the whole nation, especially with a Trump candidacy.

Orange County is a buyer’s market in 2016, but there lie a few challenges like shortage of affordable homes on offer. Supply is forecast to decrease, and so too listing prices, and the construction industry is recovering - mak-ing more jobs available for Orange County residents.


03BUYING THE BEST REAL ESTATE IN

ORANGE COUNTY

Real estate in Orange County has long been a consistent performer for the as-tute homeowner and investor, offering a steady return on investment through the many towns and cities that make our county a great place to live and work. Whether it’s your first home purchase, or part of an expanding investment port-folio, becoming a property owner is a big decision to make, and will require your diligence, commitment, and an understanding that, for the most part, it’s a long haul to accruing wealth.

To get you started in the right direction, we’ve used our expert knowledge in real estate to present solutions to common challenges you’ll face when looking to buy the best possible property in Orange County. Work through the items in order, and you’ll be well on your way to a trouble-free property purchase.


KNOW WHAT YOU CAN AFFORD

It’s easy to get over-enthusiastic and “shoot for the sky” when looking for a new home, so it’s important to maintain a level head to avoid overspending. With the flurry of activity in the Orange County real estate market, it’s not hard to see how easy this could happen. The best way to curb your spending habits is to take stock of your finances, keeping in mind the current and future expenses you may incur with the purchase of another property. Documenting your monthly expens-es in a spreadsheet is a great way to get your head around this, and ensure you don’t exceed your means. Remember, it’s smarter to buy a home you can easily afford, so don’t make things more difficult for yourself than they need to be.

BUYING THE BEST REAL ESTATE IN ORANGE COUNTY

Once you’ve got a clear understanding of what you can afford, it’s a good idea to step back and consider whether property is really right for you and your future.

To help, some personal questions to ask yourself might be:

• Where do you want to be in 2, 5, 10 years?• Where is your ideal location to live?• Do you want to start a family?• Do you want to travel? Do you want to have a solid base for a family?• Are you satisfied with your career(s), or do you see a sea-change in the future?• Are you comfortable with the idea of commitment and the responsibility of

maintaining another asset?

I’f you’re an avid investor, some other relevant questions could be:

• What investments do i currently have, and what do I want to acquire in the future?

• Do I have retirement savings? • Will liquidity be an issue for me? Do I need fast access to cash? • Will I be able to be in this long-term, and be comfortable with an unpredicta-

ble cash flow? • Do I expect my investment property to supplement my retirement? • Do I expect the property to provide income, or do I want long-term capital

gains?

Painting a clear picture of your financial future will put you in a good position to profit from your Orange County property purchase, and ensure you’re getting an outcome that suits your personal goals, not just the banks’.


FINDING AWINNER

When looking for a new home in Orange County, consider searching for one that, at a minimum, you could see yourself living in. Should you decide property invest-ing isn’t right for you, you’ll at least be able to capitalize on a decision to stay in one place for a longer period of time - reduced expenses of moving, and higher capital gains potential. The National Association of Realtors concluded that the price of existing homes increased on average by 5.4% annually from 1968 to 2009. So the longer you keep your property, the more likely you are to sell at a profit in future.

LOOK LONG TERM


While it’s easy to think of your new property purchase as a home first, and not specifically an investment, it’s a smart move to consider real estate as a business. Profit potential comes first. it doesn’t make sense to extend yourself beyond your financial means just for the sake of owning your “dream home”, and falling into the trap of straying from your budget may lead you to mistakenly purchase a “white elephant” which could leave you deep out-of-pocket.

Instead, you should consider how your future home will look from a fellow buyer’s perspective, and assess if it will be easy or difficult to sell again later. Something to consider might be if a home is remarkably different in terms of size, style, price, etc. If so, you might want to skip it and look elsewhere.

The biggest influence on the inherent value of a property is the surrounding neighborhood, and the good news is, Orange County neighborhoods are some of the finest in California. To find the best piece of real estate in town, you need to educate yourself as much as possible on the neighborhoods and suburbs that have the best offerings. In particular:

• Services: What services are close by, that may increase the desirability of your property for renters or future buyers? Health, shopping, employment etc.

• Schools: Many renters and buyers look for the availability of schooling for their future family. What does your potential investment offer in terms of schooling?

• Transport: Access to transport is becoming more of a consideration, as pop-ulations swell and drive more cars off the road. Is parking available? Are there busses or trains close-by? How easy is it to get to an airport? Is the airport domestic or international?

• Desirability: How desirable is the location? Are the streets lined with trees? Are the yards well-kept? Is it a newer or older neighborhood? Is it busy, or peaceful?

PSYCHOLOGY OF AN INVESTOR: REAL ESTATE IS A BUSINESS

WHAT DOES THE NEIGHBORHOOD SAY?


Some tips to remember when looking at a property’s return on investment are:

• Stay clear of areas where property prices are at their peak. Generally, these offer a lower rate of return. Instead try to find a property in an up-and-coming area. A property agent will likely be able to help you out.

• Focus on your main investment variables: the purchase price, rental income, and potential profit. Don’t make the mistake of getting emotionally involved in the deal. You won’t be living in the home, so forget the room layouts or carpet color.

• Look into distressed properties that have been returned to lenders (banks and mortgage companies) after foreclosures. There’s great deals to be had there.

• Determine how much you can get for your property’s rent. As a start, check out the U.S. Department of Housing and Urban Development Web site. They offer fair Market Rental Rate statistics that break down average rentals for metropolitan areas across the United States. Alternatively, check out the “For Rent” section of Orange County newspapers and property magazines. You’ll be able to get a general idea of market conditions there.

GETTING THE BEST DEAL ON AN

INTEREST RATE

Unless you’ve got a significant stash of cash in the bank, then you’re going to need to borrow money from a lender to buy your next Orange County home. To ensure you get the best possible deal on a home loan interest rate, try out these following tips:

• Shop Around: Just like you’d shop around for that new pair of shoes or a replacement for your favourite set of Oakleys, there’s nothing preventing you from doing the same with your mortgage interest rate. Consider at least three loan providers before making a final decision, and avoid being sucked into a deal without considering the repercussions. Be sure to check for any hidden fees like break of contract, early exit, transfer of mortgage etc. These could outweigh any potential benefit you receive.



• See a Mortgage Broker: Sometimes being in the know gives you perks and exclusive deals that normal people can’t access, and that’s exactly what a mortgage broker can offer. A mortgage broker has agreements with a specific list of lenders, and can have first choice of new products, services, and inter-est rate preferences for continued business. Mortgage brokers receive com-mission from the bank rather than you, and they don’t get paid unless you get a loan. They’re more likely to find something that suits your needs rather than just outright sell you a product, so you’ve got a better chance of a better deal.

• Utilize Buying Power: If you’ve got multiple loans with one lender, make a point of highlighting the amount of business you have and see if they’re willing to come to the table with a better deal. If you’re spread across multiple lend-ers, consider consolidation as a means to obtain a better interest rate. In all cases, be sure to consult a professional before you make a decision to ensure there are no negative tax repercussions.

• Don’t be Afraid to Ask: A much forgotten and extremely effective way to get a better interest rate, is to simply ask for one. On some occasions, the bank may have updated their policies and products and conveniently forgotten to inform you. Sometimes, these internal product swaps come at no additional cost to you and can lead to big savings. Always remember that banks are in the game to make money, so they won’t always be willing to advertise options that lower their bottom line. As the age old saying goes: It costs nothing to ask!

Remember that financial institutions have stringent criteria for issuing loans, es-pecially after the financial crisis of 2008, so it’s wise to check just what you can take to a property agent before making a spontaneous offer on a piece of real estate you like.

CLOSE THE DEAL

Once you’ve found the best piece of Orange County real estate that fits yours (and the banks’) criteria, it’s time to make an offer.

Negotiating a deal for investment property is an art, and unless you’ve got the background knowledge of the market, then consult a property agent and consid-er employing their expert services to do the negotiation on your behalf. Failing to take control in negotiations could leave you jeopardizing your investment.

As a final note on closing your investment property deal, be sure to include a clause in the buying contract to have purchase conditional on finance approval, and on the property passing a building and pest inspection. All too often, prop-erty condition is assessed face-value - what’s on the walls, and what looks good to the naked eye. What you can’t see - what’s behind the walls - is what you need to know before committing to a contract. There are many hidden dangers that



you may inherit, which could cost you a lot to fix later on. Check for things such as termites, frame rot, structural integrity of foundations, and for dangers such as plumbing leaks. These are all nasty surprises that need to be inspected for by a qualified professional.

Making the decision to buy your own piece of Orange County real estate is a significantdecisiontomake,andit’suptoyoutoperformsatisfactorydue-dil-igencetoensurethatyoufindthebestpossibledealinthemarket.Usetheguide above to ensure you’ve covered all the bases, and have truly found a gem amongst the many housing market listings. If you need further assis-tance,thenaqualified,local,OrangeCountyrealestateagentisyournextportof call. Don’t be afraid to use their knowledge to your advantage, and score the best home for you and your family’s needs.

04 SELLING REAL ESTATE IN

ORANGE COUNTY

It’s one thing to sell your Orange County home, and another to walk away with a profit rather than a loss. And as a long term homeowner, your home is a sym-bol of your love, family values, dedication, and hard-working commitment. Selling your pride and joy for a loss simply isn’t an option. So when it comes time to sell, you want to be sure you’re doing everything you can to sell your home for the greatest profit, with the least amount of stress. Well, you’re in luck.

To help you sell your pretty piece of Orange County real estate in the black, we’ve created this handy guide just for you. Let’s see how you can sell your home for a profit in 2016, starting with market timing.


THE BEST TIME TO SELL REAL ESTATE IN ORANGE COUNTY

If you’ve got your finger on the pulse of Orange County real estate, then you’ve probably heard it all before: Spring is the best best season to list a home.

But is that really the case?

Yes, spring is the best time to sell your home in Orange County, but not by much. Real estate brokerage Redfin analyzed over 7 million homes listed during the 2010-2014 time period, to gauge what time of the year, if any, was better to sell property, and if seasonal changes affected property listings.

SELLING REAL ESTATE IN ORANGE COUNTY

Here’s a summary of how the seasons compared.

SOLD ABOVE LIST SOLD WITHIN 30

SEASON % DAYS %

Winter 14% 38%

Spring 15% 39%

Summer 12% 36%

Fall 11% 34%

Source: Redfin Real Estate

The data from their study suggests that, no matter where in the U.S. you have a property, avoid listing your home for sale in the fall, when buyers are more fo-cused on things like the start of the school year and getting ready for the holidays. This conclusion is backed up by the statistics: 34% of homes listed in fall went under contract within 30 days, and only 11% sold above list price.

So how does the property market history for Orange County compare?

UNDER CONTRACT WITHIN 30 DAYS %

WINTERDec 21-Mar 20

SPRINGMar 21- June 20

SUMMERJun 21- Sep 20

FALLSep 21-Dec 20

Atlanta, GA 11% 11% 10% 9%

Austin, TX 13% 14% 10% 10%

Baltimore, MD 8% 8% 7% 6%

Boston, MA 11% 12% 9% 9%

Chicago, IL 7% 8% 6% 7%

Denver, CO 11% 13% 10% 11%

Houston, TX 12% 12% 10% 10%

Long Island, NY 3% 3% 3% 3%

Los Angeles, CA 21% 22% 18% 17%


Miami, FL 13% 13% 12% 11%

Oakland, CA 27% 31% 26% 25%

Orange County, CA 16% 16% 13% 13%

Philadelphia, PA 7% 7% 6% 6%

Phoenix, AZ 15% 17% 14% 11%

Portland, OR 14% 15% 12% 12%

RiversideSan Bernardino, CA 21% 22% 19% 16%

Sacramento, CA 10% 8% 8% 9%

San Diego, CA 17% 17% 13% 13%

San Francisco, CA 32% 35% 32% 33%

San Jose, CA 37% 38% 33% 34%

Seattle, WA 16% 18% 14% 14%

Washington, DC 14% 15% 11% 11%

Source: The National Association of Realtors

It turns out that for 2010-2015, the Orange County real estate market trends in a similar direction. Winter and Spring were the best months to sell at 16% under contract within 30 days, with the worst seasons being Summer and Fall, both sharing a 13% contract rate.

So if you’re looking for the best time of year to list your Orange County home for sale, then your best bet is in Winter and Spring - when buyers have more time without the distractions of summer and the new school year, to actively search for properties on the MLS database.

HOW TO SELL YOUR PROPERTY

AT A PROFIT

When it comes to selling Orange County real estate for a profit, there are three fundamental aspect of a property deal that should demand the most attention. Get these perfected, and you’ll stand the best chance of a sale in the black...

1. GET THE PRICE RIGHTThe small changes in your final sale price can have a bigger impact on your chanc-es of selling your home in Orange County than you think. If you’re complacent, and decide to throw a ballpark price at the buyers in the property market, you


could miss out on significant earnings that could afford that holiday you’ve been wanting, or a nice house by the beach. Taking the time to price your home right rather than simply rushing it to the market will help for a fast and profitable sale, and here’s how you do it.

• Pick a Price That Gets Noticed - In a Good Way: Stick close to a recognised price bracket - say $500,000 for example, and don’t be tempted to get too creative with price. Choosing figures that lie within popular price points such as $787,777 is a surefire way to attract the wrong type of attention, as buyers may get curious about you and find reasons not to consider a purchase. It’s best to keep yourself as invisible as possible, since you’re showcasing your property, not you as its owner. In general, a potential buyer of real estate will search the Orange County MLS database for properties that match key price brackets like “$250,000-$500,000”, and if your home is listed at $510,000, then a buyer won’t see it for a search below $500,000. Sometimes it’s better to forego the $10,000 for more marketing exposure, which will likely result in a quicker sale. Remember: Pick a price that turns up in search engines and get’s your property sold, not red-flagged.

• Price to Attract Traffic to Open Homes: A potential buyer doesn’t want to be the only one showing for an open house. This gives the impression that there may be something wrong with your property, or the deal may be ‘too good to be true’. Perform a quick search of the Orange County MLS database and price your home at the lower end of the value range. Doing so may create interest among buyers and encourage a ‘herd’ mentality - people following each other because everyone else is doing the same. Don’t worry about the lower asking price. If you’re attracting more potential buyers, then there’s a greater chance of a bidding war which could easily drive your price higher than what you’re asking.

• Price According to Value, Not Market Condition: It’s an easy temptation to list your home on the market at a higher price, just to see if you can get it. Don’t do it. Pricing your home according to the true value of your home is crit-ical to get a quick sale and the best possible price. Research shows that if you begin your listing overpriced, and drop the price to counteract the extending period on the market, you will usually sell your home at a highly discount-ed price. Your home is worth what the market will pay, so be sure you dis-cuss your sale price with an experienced Orange County realtor and ensure you get a comparative market analysis done which explains exactly how your home should be priced.

2. DARE TO DECORATE The presentation of your home is more important than ever in 2016. The key to a well presented home, and a successful sale of your Orange County investment, is to ensure your property is appealing to the widest audience possible. Your potential buyer needs to feel like they could move in straight away with their be-longings.

Firstly, remove any personal effects that could make a prospectives buyer’s ability to imagine your home as theirs that much more difficult. Think of your home as a hotel room: neutral and appealing to the majority.

Once you’ve done that, consider decorating your home. Decorating is a cheap, easy and fun way to make simple improvements in preparation for a sale that can bring great returns. As home improvement shows on TV will point out, there’s no shortage of options to consider when it comes to decorating, so to make your job that little bit easier, check out the ideas below for some quick wins.

• Wall Mirrors: Wall mirrors can be used to add light, space, and really bright-en up a blank wall space. Then there’s the practical uses as well. Search your local thrift and antique stores for some excellent options. You may even have luck on Craigslist or Ebay.

• Wall Art: Wall art is an excellent way to give a dull space some pizazz. Your local gallery and homewares stores frequently stock wall art for decoration purposes. Besides art, don’t forget that there’s more than just paint that can look good on a wall. Rugs, photos, posters, and wallpaper can all be used to bring a decorative spark to your home.

• Planter Boxes: Consider indoor plants such as the ming aralia, peace lily, herbs such as rosemary and sage, spider plant, or the humble cactus. You can make your own planter boxes out of recycled materials of you’re handy, or you can head to your local hardware store or nursery for plenty of inspiration.

• Table Center Pieces: Lazy susans, table runners, fruit bowls, candle trays, placemats, colorful coasters, and even small water features are just some of the options you can use to spruce up a bare table setting.

• Curtains: Looking out onto your street or yard through naked windows is hardly an inspiring image, so how about some curtains or blinds to add dec-orative flair to your home? If your existing blinds or curtains are outdated, consider replacing them with new, more modern ones. He payback can be significant if they appeal the right buyer.

• Lamps: A perfect addition to those bare side tables, or a beautiful center-piece for a vacant corner or doorway entrance. Lamps can be used to shed a decorative light over your home.

• Floor Rugs and Throws: Perhaps you have a cold, bare, tiled floor, or carpet that’s looking a little outdated with your new furniture purchase. Rugs and throws are a great way to add color to a dull setting. Try using rugs as center-pieces beneath coffee tables, under dining tables, or even along a hallway at the entrance.

3. REJUVENATE AND RENOVATEA renovation or home improvement investment has the potential to raise the asking price of your Orange County property considerably - if you know where to focus your effort. Choosing the renovation that offers the biggest “bank for your buck” is essential to a profitable sale after your renovation.

If your life situation is such that you don’t have the time or the finances for exten-sive renovations, you could try a few of the simple do-it-yourself projects below. They won’t cost a lot, but can instantly add to the appeal of your home, and to the bottom line come sale time.

• Freshen up your paint: Use beige, off-white and other neutral colors. • Clean up kitchen cabinetry: If your cabinets have a dark coloring, scout

around the market and pick up white paint for them. Often, a blend of old, rattling doorknobs give your house a dated feel.

• Freshen up appliances: Give them a good clean so they shine as good as new. If you have the finances, replace them with newer models.

• Replace flooring: Consider putting down new carpeting or wooden floor-boards - all the trend in Orange County at the moment.

• Fix the little things: Make sure you undertake all the repairs you’ve been put-ting off for a long while now. ex and oil works very well to brighten them up.

• Garden work: Clean up the lawn with some landscaping, hedgework and replanting. Take care to mow and edge the grass for a neat, trimmed look.

• Change the hardware: Squeaky hinges are a sure way to deter a potential buyer, so give your home a quick run-around, searching for the small, “quick-wins” that you can do. Door knobs, handles, hinges - anything that looks (or sounds) old and could use a freshen-up.

When planning your renovations, keep your target buyer in mind. If yours is an upcoming neighborhood that is attractive to families moving in, they could be looking for a home that needs the minimum amount of work. In other words, families with kids typically don’t have the time or energy for renovations soon after moving in. On the other hand, young couples or single people prefer a place that they can decorate according to their tastes if they can economize on its cost of the property.

PERFECT PARTNERSHIP: FINDING THE RIGHT

REAL ESTATE AGENT FOR A SALE

In the world of Orange County property investing, it’s important you have a win-ning team to support your investment goals. And at the forefront of every real estate investment team, is a real estate agent. Using the services of the right professional realtor, or listing agent, will ensure a smooth, profitable transaction at the end of the day.


The reason a realtor is so important, is that they are trained to be emotionally un-biased, and will treat your home like an investment. Above all else, an agent is there to ensure that the profitability of your home sale is at the forefront of all de-cision making. And when it comes to finding a reliable and reputable real estate agent, it can be a daunting process. Beware the fancy brochures and flashy cars. Not all agents are the same, and some may take advantage of you and leave you significantly out of pocket.

To prevent such an outcome, be sure to ask your real estate agent these four questions first.

1. Could I See Your References?: Finding a good agent is like a job interview, and you’re the boss. Sure, a real estate agent will be able to emphasize all of his positives - sales records, qualifications, experience and so on - but can they back up their claims with proof? Ask your real estate agent for a list of references you can contact, and be sure to get the full scoop before you sign the dotted line.

2. How Will You Market My Home?: Marketing your home is the most impor-tant step when attempting to sell. There are many ways that this can be done, and if it was simply a matter of posting a for-sale sign on your front lawn, then everyone would be doing it. A real estate agent can offer you access to a range of resources for marketing your home. Before you sign an agent up, make sure you ask them to provide a marketing plan which outlines how they intend on advertising your house so it gets sold quickly and for the right price.

3. What Are Your Fees?: Money talks, and the amount your agent will charge for their service is money from your bottom line. Ask your next real estate agent about their fee structure, and how much you can expect to pay for your desired sale price. Pricing structure may vary, but most agents take a percent-age of the home’s final sale price as their commission. This percentage will vary with each agent, and remember that everything is negotiable. If you’re not happy with the commission you’re up for, ask if they can do a better deal. Price isn’t the only factor though, since in the end, you’re likely to get what you pay for.

4. What’s Your Experience?: Nothing speaks more about the quality of an agent than their experience, but how do you measure it? Here’s a couple of good measures of experience to ask your agent before taking business further:

• Howmanyyears’experiencedoyouhave?How long have you been in


the business? • What’s your list-price-to-selling-price ratio. This ratio is calculated by

comparing the original list price of the property to the price at which it sold. Choose an agent with a ratio close to 100%.

• Whattypesofpropertyhavetheysold?Are they more experienced sell-ing condos, large comes, or even commercial real estate?

CLOSE THE DEAL WITH A PROFIT

Selling your Orange County home is an exercise that needs careful research, planning, and consideration. If you follow the recommendations provided above, you’ll have a good chance of walking away from your home with a nice profit you can use to invest again. But remember, although there’s plenty of resources on the internet, nothing compares to a professional Orange County real estate agent for up-to-date advice. Using a specialist for Orange County homes can increase your chances of a profitable sale, using tried and tested local knowledge to flavor the sale of your home according to local tastes.


CONCLUSION05THE ULTIMATE GUIDE TO REAL ESTATE INVESTING IN ORANGE COUNTY

In the world of real estate investing, there are always times when one can profit, and one can lose. The difference between the two results, is your level of edu-cation, and the strength of your property investing team. Sometimes, no matter how diligent you are, you’ll make mistakes. Everyone does. What will make you a successful investor, is your ability to learn from your trials and tribulations, “get back on the horse”, and keep exploring new ways to profit in an ever-adapting market.

This guide to investing in Orange County real estate will get you started on the right foot. Remember, the key to property investing is:

1. Knowing the financial climate, political motivators, and market trends; and understanding the optimal time to enter (or exit) the property market.

2. Finding the property that suits both your budget and goals for your future.3. Upon selling, choosing the best time to put your home on the market,

and performing key home improvements under recommendation from a partnership with the right real estate agent.

Investing in Orange County real estate is a long-term game. It’s not a place for quick-wins and lucrative back-door deals. If you’re considering entering the prop-erty market for yourself, realize that they key to a well-performing investment strategy is patience, and a willingness to ride through the bumps that will inevita-bly surface on the road to success.

It’s a long road, with significant wealth gains awaiting those ready to go the dis-tance.

Will it be you?

ABOUT THE AUTHOR

AMY SIMS

06THE ULTIMATE GUIDE TO REAL ESTATE INVESTING IN ORANGE COUNTY

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