By Ryan Rockwood

Most of my clients never know that I don’t eat meat or dairy or any animal products. I also chose not to buy or wear products and clothing made from animal products. It’s a personal decision I made some years ago.

These days there are great alternative options for everything from protein to Jello. So it’s not usually a big deal. But today that is not the case. I’m in massive pain.

The reason for my agony? Vegetarian Shoes.  Take a second and try to get over your amazement that such a thing exists. Indeed! What did you think we did?

Anyway, no surprise they are terrible quality and incredibly rough on the feet. They look OK for a couple months. But leather continues to be a tough product to beat. Leather rules the garment industry.

So why this discussion of my footwear and why should you care? Because I spent the day walking around announcing a remarkable free seminar we are going to hold for the community on Monday, March 16. You are invited. But I’ll be wearing my leather-free sneakers and I apologize in advance for the fashion faux pas.  

What you need to know:

Heard of the Housing Bailout? Well, for most non-Bernard Madoff folks like you and me the bailout is only going to benefit you if you are approved for a Loan Modification. What is a Loan Modification, you ask? Geez, what rock are you living under? Did I sell you that rock?

Loan modification is a process whereby a home-owner’s mortgage is modified and both lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, ‘fixing’ adjustable interest rates, increasing the loan term, forgiveness of payment defaults & fees, or any combination of these.

————-That’s courtesy of Wikipedia. Learn more by clicking here.

Now you are probably wondering something along the lines of, ‘Gosh, could I get a loan modification?’ And I’ve got GREAT news for you: Maybe.

We have personally done a bunch of loan modifications (including 6 of our own personal mortgages). And we proceeded to write a book on How to Get a Loan Modification. (I wish I could say my expertise was on the topic of being super wealthy and not knowing what to do with all that cash lying around. *Sigh* Oh well, maybe someday)! Until then, when life hands you lemons…..well, you know the rest.

So here are the details you’ll need to determine if our free seminar (that could change your life) is worth missing reruns of CSI Miami.

FREE – Mortgage Modification workshop  March 16th at 7 p.m.

Hosted by Loan Modification Expert Author Mike Rockwood

60-Minute Loan Modificationauthor, Mike Rockwood, will show South Bay homeowners how to apply for and negotiate a loan modification with less than 1 hour of work.

Mike says: “I’ve already modified 6 of my own mortgages, and my system makes it utterly painless to lower your interest rate, lower your monthly payment, and save your home.”

How it Works: You have two options (1) come and learn exactly how this works so you can do it on your own afterwards (2) bring your W2 forms from the past 2 years along with your last 2 pay stubs and you can do your application right there on the spot.

Time: 7:00  p.m.
Where: 500 Silver Spur, Suite 303, Rancho Palos Verdes, CA.
Cost: $97 Free of charge!
For:Southbay Homeowners with Bad Mortgages.                  

Limited Space! You MUST reserve your place by calling 310.634.0362

Still not sold?

Well for goodness sake, read our flyer below this very minute: 

 

How Bad is Your Mortgage?

“Learn How I Modified my Mortgage down to 5.125%, Knocked $199,433 off my Total Loan Expense, and Lowered my Monthly Payment by $686 all with No Fees and Only 60 Minutes of Prep Work!”

To: Struggling South Bay Homeowners
From: Mike Rockwood (Torrance, CA)

Dear Homeowner,

Let me guess… you’re struggling to make your mortgage payments each month, your house is dropping in value by the day, and you’re not sure what to do?

 

Don’t worry—you’re NOT alone!I used to feel physically ill when the 1st of the month rolled around. I’m an honest, hard-working person like you, but I got caught up in the buying frenzy of 2004-2007. I borrowed too much, my lender lent me too much, and I nearly foreclosed on all 5 of my properties…… but I was lucky enough to attend a workshop where I learned about mortgage modification, and within weeks, everything changed!

Here’s the truth: President Barack Obama has made mortgage modification the easiest way to save your home, lower your monthly payments, and lift you out from under water.

 

Times are tough, for sure, but there’s finally hope for people like you and me. Enough talk… let me show you some of my own successes to date:

 

My Indy Mac Loan Modification:

     Before: 6.5% fixed (not bad… but not good enough)
     After: 5.125% fixed
     Monthly Savings: $638 (and $199K over life of loan)

     *primary residence

 

My Wells Fargo Loan Modification:

     Before: 6.5% fixed

     After: 4.5% fixed

     Monthly Savings: $262

 

My Litton Loan Services Loan Modification:

     Before: 7.35% fixed

     After: 7% fixed

     Monthly Savings: $140 ($27K over life of loan)

     *Rental property

 

My 2^nd Litton Loan Modification:

     Before: 12.5% fixed

     After: 7.0% fixed

     Monthly Savings: $95 ($12K total over life of loan)

     *Rental property

     *PLUS I reduced my principal by 20%

 

Why Are Banks Giving Away Money Like This?

With five million homeowners facing foreclosure right now, and each foreclosure costing lenders a minimum of $50K just in fees, banks are so desperate to keep you in your home that they’re literally handing out money to people who are organized and ask the right questions.

My FREE Mortgage Modification Workshop works like this:

7:00-7:30 P.M. – I’ll show you how to quickly (we’re talking minutes here) put together a well-presented loan modification application that is guaranteed to get reviewed by your lender

7:30-7:45 P.M. – Together, we’ll write your hardship letter communicating to your bank your situation very clearly (this part is super easy… like filling in the blanks).

7:45-08:00 P.M. – I’ll take questions and give answers to any and all loan modification questions. I am an authority on loan mods, so if I don’t know it, it’s probably not important—and if it is important, I’ll find an answer for you before the evening is over!

Why Are You Doing This For Free?

I’m very proud of my new book, the 60-Minute Loan Modification, and I’m doing this as a means of publicity and promotion. As great as my book is, I realize that in about 12 months, loan modifications are not going to be offered anymore (banks aren’t THAT crazy), so I have to spread the word as fast as possible.

PLEASE NOTE: you do NOT have to buy my book, and this is not a sales presentation. This is a rare opportunity to get 100% free help from me. I’m an expert on mortgage modification, and I can help you.  

Reservations Required:  Call 310.634.0362 or email help@60MinuteLoanModification.com

 

 

 

 

 

 

I can’t help feeling a little smug… Robin Hood style…about short sales!

For the past eighteen months I have helped homeowners sell their homes “short”…for less than they owe. So many stories have circulated about how foolhardy these borrowers were to get into loans they cannot afford. I am shocked at the level of naiveté in this attitude as the vast majority of my clients are anything but foolhardy. In fact, many of them are truly heroic – trying hard to achieve a level of “success” that home ownership conveys. Many of them leaving the home as soon as they can no longer make the payments…and leaving it in wonderful condition.

I have developed a bit of a Robin Hood ‘tude towards these deals…taking from the rich and giving to the poor.  The poor are current first-time home buyers. For the past decade these fine folks have been out of the market in the South Bay. Either by choice or because of the high prices, they have not bought a home. Now, with Torrance prices falling over 20% and so many foreclosures throughout the South Bay, it’s a great time for them. And the loans that these buyers are getting are nothing short of phenomenal…many with 3% or 5% down.

Yes, short sales are lengthy and messy and many fail to materialize. But, they cannot be overlooked for buyers seeking great home values in the South Bay!

 

 

Rocky Rockwood is the father/son real estate team of Mike & Ryan Rockwood. South Bay home buyers and home sellers can reach the Rocky Rockwood team at 310-809-0203 or ryanrockwood@kw.com. 

Listing your home with a realtor is just one step to making sure your house sells. Show off your Torrance home with photos of your property and home interior!

While listing your home with a local Torrance real estate agent is a great way to make sure you get the best price for your home, Torrance home values can be hard to prove to people who don’t already live here. Here are just a few reasons your real estate listing should include photos.

1. You are far more likely to get bids on your home when your listing includes photos. The fact is that even a simple exterior photo of your home will increase the likelihood of someone making an appointment to view your property.

2. Photos are the best way to show off the features that you are highlighting in your Torrance real estate listing. Are you proud of your well manicured lawns? Include a photo!

3. Photos also provide proof of the work you’ve had done on the home—especially if you have “before” shots to show to prospective buyers. When you repair, renovate or remodel your home, your Torrance home values rise.

4. Photos help you sort out the people who are truly interested in your property from those that were simply intrigued by your listing. You would be surprised at how many people make an appointment to view a home only to leave within the first five minutes because they had something else in mind. Photos give potential buyers an idea of what to expect when they arrive.

Torrance real estate is a growing market and nobody knows this better than the Torrance real estate agents at Rocky Rockwood. These experienced Torrance realtors know how to make sure that your real estate listing gets noticed! Call them at 310-809-0203 or e-mail ryanrockwood@kw.com to set up a free real estate consultation!

Are you interested in retiring in the South Bay Real Estate region? Here are some reasons to retire here.

Baby Boomers are coming up on their retirement and many are hoping to find a new home to retire in.  Long ago people used to live their entire lives in a single home.  Now, more and more people are relocating once they are no longer bound by family and employment constraints. Torrance is an ideal location for retirees because it is beautiful, warm and close to many amenities without being in the middle of a bustling city.  

If you are looking for the perfect retirement home, here are a few reasons to contact a Torrance real estate agent:

1. Torrance real estate is affordable and won’t break your bank.

2. The South Bay is home to many inviting amenities: golf courses, shopping, community activities, and beaches.

3. There are many Torrance homes for sale in our retirement communities—putting you amongst people who are going through the same things you are and are interested in the same things that you are interested in.

4. Torrance is close enough to Downtown Los Angeles and the Westside to give you all of the benefits of living in or near a big city without having to worry about all of the things city dwellers have to worry about like high crime rates and higher property taxes. 

5. In addition to affordability, the Torrance homes for sale offer retirees comfortable living in a comfortable climate—a climate that is ideal. 

The South Bay real estate market is a growing market that is full of beautiful and affordable property that is ideal for retirees.

If you have been considering retiring in the Torrance area, contact the Rocky Rockwood Group to schedule some Torrance open house viewings.  We offer free financial consultations to every new client!  Call 310-809-0203 or e-mail ryanrockwood@kw.com for more information.

You already know the basics of wholesaling Torrance Real Estate.  You know about buying low, reselling and pocketing the difference.  Of course, there are a lot of little tips and tricks to help you ensure that the process goes smoothly.  Here are a few tips to make your South Bay Real Estate wholesaling be as profitable as possible!

1. The wholesaling process shouldn’t exceed twenty days.  Any more than that and you might lose money on your investment.
2. Don’t agree to pay too much on your Torrance Real Estate investment.  Always remember that to turn a profit you’ll have to re-sell the property for more than you paid for it.  If you pay too much, you’ll have a hard time selling it later.
3. Try to sell your property for cash.  This will ensure that the transaction goes smoothly and quickly because you won’t have to wait for financial approval.  
4. Consider using the assignment of a contract with your closing agent.  This way you won’t ever have the title signed over to you (which can make things complicated, tax-wise).  You simply pocket the profit as your original seller turns the property over to your buyer.
5. As a wholesaler, your “ceiling” should be twenty percent of the selling price.  If you try to increase your profit by more than this, you will probably have trouble finding a buyer.  

These are just five tips to help you make the most of your new South Bay real estate wholesaling business.  If you would like more advice, the Torrance Real Estate agents at Rocky Rockwood can help you learn how to best run a wholesaling business.  

For a free financial consultation and wholesaling advice session, call 310-809-0203 or e-mail ryanrockwood@kw.com to set up an appointment!

By now, you’ve probably heard all about flipping real estate for a profit, but have you considered other ways of using real estate investing to make money?  Here are five South Bay real estate investment methods that can also make you quite a bit of money.

#1:  Buy a large piece of not yet developed South Bay Real Estate, split it into lots and sell it.

This method will earn you an extremely large return on your original investment.  The downside is that it can take quite a bit of time to sell off each of the lots.  This means your capital can get tied up for quite a bit of time.

#2:  Turn a larger house into a into a boarding house.

Boarding houses can earn you quite a bit of money because you are renting out individual rooms instead of renting the whole property to a single person or company.  The downside is that you might end up losing money during down time when the boarding house isn’t full.

#3:  Invest in Torrance Commercial real estate.

The longer term triple net leases mean that you won’t have to do a lot of site management and will provide you with a larger return on your original investment.  The problem is that commercial real estate can be a tough market to get started in, and you can lose quite a bit of money while you wait for someone to lease your storefront.

#4:  Purchase a Torrance home, live in it and then sell it.

The biggest advantage to this is that when you actually live in the home before you sell it, you won’t have to pay as many taxes on your profits.  The downside to this South Bay real estate investing method is that you will have to move quite a bit and that can be rough on you and your family.

#5:  Purchase an outer lying piece of South Bay real estate and then sit on it.

Eventually the property values on the land you have purchased will go up and you can make quite a large return on your original investment.  The problem is that the market isn’t predictable and you could end up sitting on a vacant lot for quite a long time before you can make a profit. 

Flipping houses is one of the best way to make a profit in Torrance real estate. The Rocky Rockwood team has experience in real estate investing and is happy help you decide which method is best suited to your financial situation. For a free and complete financial consultation, call 310-809-0203 or e-mail ryanrockwood@kw.com to set up your appointment.

Good News, Bad News…or, One man’s trash is another man’s treasure!

Good = Southern CA home sales skyrocketed a record-setting 65 percent in September, compared to a year ago! Wow!

Bad = However, the median price dipped below $300,000 – plunging more than 33 percent, according to DataQuick. Throughout the region a full 50 percent of all home sales were in some stage of foreclosure. That’s what is driving home prices down now. There’s plenty of demand…just too many foreclosures.

Good = The foreclosure numbers do show a 12 percent decline from August to September.

Bad =  ”Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,” said James J. Saccacio, chief executive officer of RealtyTrac. “Most significantly, SB 1137 in California took effect in early September and requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD). Follow this link to view current Torrance Foreclosures. In September, we saw California NODs drop 51 percent from the previous month”, he added.

That reduced number of foreclosures may not amount to a hill of beans, according to the blogger Sean O’Toole, founder/CEO of ForeclosureRadar.com.

“Be careful with drawing any conclusions from the declines. The reality is that this only delays the process, and unless lenders radically change their position on loan modifications with principal balance reductions, it will likely have little impact other than a delay of the inevitable,” O’Toole writes.

So, trash for South Bay sellers and treasures for South Bay buyers! Call me to help you do either!

Ryan ‘Rocky’ Rockwood

310-809-0203

Ryanrockwood@kw.com

Pricing for last month’s buyers!

Have you heard of the phrase “chasing the market”? It’s the all-too-common practice of sellers in the South Bay in this declining market where they realize the lost value about 30 days too late. Then, the resultant price reduction is enough to have satisfied last month’s buyers…but not next month’s buyers…and the cycle get s repeated again and again until the seller feels they’ve made huge concessions and the market still yawns!
The antidote for this malady is to have an open and frank conversation about pricing before listing the property. 5 key elements:

1. The market determines the price. Not the owner, not the realtor, not the appraiser…the market. That is, there is a certain amount of $ that a well-informed, qualified buyer will pay for your property in today’s real estate market…
2. Professionally marketed, the home will be seen by 60% of qualified potential buyers within the first 15 days. The initial listing period is extremely important. For a variety of reasons, interest in the property diminishes dramatically after 15 days. 
3. Buyers shop by price range. They search the internet by price range and stipulate a price range to their agents. Agents automatically notify buyers of available homes in their price range. If you overprice your property, by as little as 10%, you will miss as much as 50% of the qualified early viewers. 
4. Property valuation is an art and a science. So, take your love for the home and appreciation for how special it is and couple that with the objective analysis of an appraiser (in declining markets I always pay for an appraisal of my listings upfront) and your Broker’s Price Opinion (BPO). 
5. Price should be calculated to accomplish your goals…speed of sale vs. net.. In a declining market there are just two alternative goals – fast and WRONG. Later in the season is not good, later in the year is not good…later is not good. Your equity is diminishing…whether it’s at 1% per month on the Palos Verdes Peninsula, or 3% per month in Carson. You need to sell quickly or lose. 

I’m writing this from an open house (mls # Z08100276) that I am conducting for a friend. It started on the market 115days ago at $2.45MM and has “chased the market” to $1.89M today. The number of internet site visitors, sign calls, and open house visitors has dramatically declined and the sellers would probably entertain an offer 10% below list price.  I guarantee that, had they offered the home for $1.69MM 115 days ago, they would have had multiple offers and sold it within days.

It’s so easy when it’s not your own money!!!

 

Mike “Rocky” Rockwood is part of the father/son real estate group, The Rockwood Group. Torrance home buyers and home sellers can reach the Rocky Rockwood Group at 310-809-0203 or Ryanrockwood@kw.com.

The first question you should ask yourself is why you want to invest in South Bay real estate. Most people are seeking financial independence. Some people want their assets to grow, some want an ongoing income stream and some want tax advantages. The good news about Real Estate is you can have all three!

Many people save and invest their entire working lives so that they can retire with enough money to live whatever lifestyle they want when they stop working. The big question is “How much money do I need to put away to support that lifestyle?” Well, if you want to have $100,000 a year to live on, you will need to have about 20 times that ($2,000,000) invested to meet that income need at retirement. Then, whatever annual dollar amount you need today, you will probably need double that every 15 years. 

One of the best things about real estate investing is it offers you leverage. Think of it this way, if you have $10,000 invested in a stock or bond that returns 5%, you will earn a 5% return or $500. If you put $10,000 down on a $200,000 piece of property and it goes up 5%, you just doubled your money or $10,000. That’s 100% return! Then, if you take into consideration that you could have received some cash flow, and your tenants are paying down your loan, and you get to write off depreciation and other expenses, 200% annual returns are not uncommon.

A good indicator for buying cash flow properties is what we call a “cash on cash” return. If it took $10,000 out of your pocket to buy a property that cash flows $250 a month ($3,000 a year), that’s a 30% return on your cash. 

The first thing that needs to be done is to find out how much money you can borrow. You need to talk to a lender that is familiar with investment real estate. A good lender can advise you as to what strategies you should employ based on your credit scores, savings and income. Once you know what you can qualify for, then you are ready to go on to the next step.

Determining which is the right area to invest is the next step. If you are primarily looking for appreciation, you will want to focus on the high-demand coastal areas. If you are looking for cash flow you may want to look in more established areas inland. I always advise looking for homes/units near major transportation centers or employment centers or universities, etc. 

Finally, you need to conduct due diligence. There are no short cuts here. It’s very important to investigate what you intend to invest in. What is the property really worth, what are the vacancy rates, what are the property tax rates, what does the owner typically pay for – utilities, lawn care, etc., is there a Home Owners Association and how will you manage the property and how much will a management company cost you?

 

The South Bay is a region just South of the City of Los Angeles that encompasses the smaller regional areas Beach Cities and the Palos Verdes Peninsula. Torrance is a large enough city that it is usually not included in these subcategories of the South Bay.