CNNMONEY.Com Article Written by Morons.

CNN, Which is apparently as clueless about Real Estate as it is about just about everything else, posted this load of crap about mistakes home buyers make. Unfortunately, the author, or authors, of this drivel are ignorant of how real estate transaction are actually conducted.

CNNMONEY.COM "6 Biggest Mistakes Homebuyers Make"

And, here's the REALITY of Realty.

1. "Know your credit score" Yes, your credit score is a major factor in whether you can qualify for a mortgage, what kind of mortgage, and the interest rate. HOWEVER, it is far from the ONLY factor. INCOME!! How much money you make is a huge factor! As is your "DTI" Debt To Income. If you make $50k/year, have perfect credit, but also $100K in Debt (especially credit cards), you won't get a loan even if you have an 800 FICO!

2 "Buying a car before the house" Yes, a bad move because it MAY lower your credit, BUT!! even worse move because it will raise your DTI!!

3 "Skimping on Home inspection" Can't argue with this one. Home Inspections are a MUST!! However, If you can't afford to have a home inspection done, YOU SHOULDN'T BE BUYING A HOUSE! Seriously, a H.I. cost $250-450, and if you're that strapped that you can't pay for it, then you won't be able to afford any repairs. Wait to buy till you have more funds!

4 "No Lawyer" Apparently, whoever wrote this crap either is, or has a relative who's a lawyer. The author also doesn't understand that as a Licensed Realtor, it is your duty to protect and promote your clients best interest. In other words, it's YOUR Realtor's job to make sure you don't get screwed. And that comes first and foremost in any reputable Realtor's mind. If you think your Realtor would let you take a hit just to close a deal, GET A NEW REALTOR!!

5 "No Contingencies" First of all, there are NO minimum requirements for Earnest Money Deposits!! NONE! Technically, you don't even have to OFFER an Earnest Money Deposit!

If you do, there are specific, and very broad, contingency clauses that allow the buyer to get their EMD back. Failure to appraise for sales price, failure to passinspection, failure of the buyer to secure financing are all standard language contingencies in the AAR sales contract.

I would NEVER allow a client of mine to sign a contract waiving these contingencies, and neither would any other responsible agent!

6 "not budgeting for Insurance" Further proof that the author of this article is completely ignorant!

You CAN NOT get financing, conventional or otherwise, unless you know, before purchasing, what your insurance costs will be!!

Why? #1 If your insurance costs are too high, you either won't be able to afford your total mortgage payment, and you'll default,

#2 or you'll drop the insurance, which will breach your contract with the lender who financed you, because THEY have a stake in the house too!

If you want to sit down with a Real Estate Broker who actually knows what they're talking about, and get some good advice about buying a home, and what you'll need to do, please, call me!

Erin Goldbach

Designated Broker

Vanguard Platinum Realty

602 524 0186

What's so special about April 30th 2010???

Why should that date mean anything to you?

April 30th...............

No, not your Mother's birthday. Not your anniversary. Tax day was two weeks before........

April 30th is when the New Home Buyer's $8000 tax credit ends!!!

That's a big deal!!

For 10 more weeks, if you buy a home, and you haven't owned a home in the last three years, you qualify for an $8000 tax credit! That's right! The Federal Government will send you a check for $8000!

What's the catch? There is none! You have to have the property under contract by April 30th, and close by June 30. That's it!

And there's also the Existing Home Buyer Credit of $6500! If you've lived in your home 5 of the last 8 years, and are up/down sizing because of a life event (you have a child, or one goes to college), you can get a $6500 tax credit when you purchase your new home!

Do you know someone who's renting? Do you know someone who's outgrown their current home?

Have them give me a call to see how I can help them get FREE MONEY!

Erin Goldbach

Vanguard Platinum Realty

602 524 0186

I wrote this in May of 2007

I just found this on my old laptop, and found it both amusing and prophetic.

I'll let you decide how "on the money" I was!

"All Real Estate is an Investment.

People buy and sell Real Estate for any number of reasons. However, the deciding factor is always the financial commitment that property represents.

The nicest home in the world won’t sell if no one is willing to pay the asking price.

If the price is right, someone will buy the most run down of properties.

Why? Because that decision is based on the future perceived value of the property.

However, Real Estate Investment can be a risky venture without a strategy geared towards the current market conditions.

I specialize in helping people develop, and implement, wealth accumulation strategies based on Residential Real Estate properties in the Phoenix Arizona area.

The Phoenix Investment Property market is a dynamic one. Last year's strategy of “fix and flip” will not work in today’s market. Today the focus needs to be “buy and hold”.
Which means finding Renters for your Investment Property, and making it an Income Property.

Today’s market is perfectly suited for this strategy.

Let’s look at some facts:

During the housing boom in 2005, many people purchased properties at highly inflated prices. They financed these homes with risky, Adjustable Rate Mortgages, or Interest Only financing. There is nothing inherently wrong with either of those financing options, in some cases, they are the best option. However, they are both based on the premise that the market will continue to appreciate. It did not. The majority of these loans had two year caps that are now about to expire. Home owners are now looking at drastic monthly mortgage payment increases. Because of the drastic drop in home values, these owners cannot refinance to get out of their current mortgages. This is creating a situation where Properties are being sold in “Short Sales” at lowered prices to avoid foreclosure.

Anyone with good credit, and cash reserves, can take advantage of these circumstances to build an impressive real estate portfolio.

I specialize in finding these properties, and work with a team of financial experts to arrange the safest, most advantageous terms possible. XXXXXXXXXX (Former company) is also one of the largest property management firms in the West Valley.

Let me help you become wealthy."


Obviously, having written that 2 1/2 years ago, some things have changed. Everything I wrote in this piece still applies, but the window of opportunity has begun to close. Granted, it's closing very slowly, but according to a report by ASU's W.P. Carey School of Business, the market here bottomed out in May of this year. And since, we've seen reductions in the number of days a property is on the market, and a rise (small, admittedly) in home prices.

Also, I not only can help you find Income Properties, but I can do the management of them myself!

Interested in putting together a Real Estate Portfolio? Give me a call!

Erin Goldbach
Designated Broker
Vanguard Platinum Realty
602 524 0186

Seller Carry Back: A good approach for you?

In this real estate market, and lending environment, the difficulty for some people isn't finding a home to buy, but getting the financing to buy.

People are coming up with some creative solutions, but one that has been around for many years is a little known, but very simple one: The Seller Carry Back (sometimes also referred to as "the seller holding the Note")

What is a Seller Carry Back? Simply this: The owner of a home, who owns the property free and clear, acts as the lender, and "lends" the buyer the money to buy the home.

Before I get into an explanation of what that means, let me clarify one thing. The Owners MUST own the home outright. It must be free of any mortgage. If it is not, then the situation becomes what is called "A Wrap", which is a more complex, though not undoable, situation.

The thing that confuses people the most about a Carry Back is the notion that the owner/seller is "lending" the buyer the money to buy the home. Obviously, no cash is actually transferred from the seller to the buyer.

The Title of the property is transferred from the Seller to the Buyer in exchange for a promissory note for the sales price of the home. The buyer agrees to make installment payments on the home at a specific interest rate, usually with a balloon payment due in a specific period of time. If you think about it, this is exactly what happens with a conventional loan, but the actual "loaned amount" is on paper only.

Why would a Seller want to do this? Why would a buyer??

The advantage for a Seller is the chance to make substantially more than just the sales price of the home. Imagine if you were a Seller, and you agreed to sell your home to a buyer on a Carry Back for the price of $120,000, at an interest rate of 6% in an amortized 30 year loan, with a balloon payment due at 5 years.

Sounds like gibberish, right? Its actually pretty simple. The Buyer is going to make you monthly payments, of principle and interest, at 6%, with the remaining principle balance due in 5 years.

So, what's the advantage?? Over the course of those 5 years, the Buyer is going to pay you almost $35,000 in interest, while they lower their principle to $112,000. That means, when they refinance the home to pay you the remaining balance, you didn't just make $120,000 off of the sale, you made $155,000 total!!!!!!!

That's Right!!! By carrying the loan, you made yourself an extra $35,000!!

So, what's the catch? What's the down side? The biggest downside is the buyer not paying, and then you have to foreclose on the property. And depending on the condition the buyers leave the home in, that may be a big risk. Another risk is that at the time the balloon payment is due, the buyers may not qualify for a mortgage, or the property may not appraise for the value.

These things to consider, and there are safeguards that can be put in place to avoid, or limit these risks.

Why would a buyer want to purchase a home through this means?

The real estate market over the last 2-3 years could be summed up by saying "Bad things happen to good people". Or, as a lawyer friend of mine likes to say, "Bad luck happens".

Many people who have lost their homes due to the market and the economy are people who in other conditions would be qualified buyers. They're people who need some time to get their feet back underneath them financially, and might not need too long to do so. These are the people who can be good candidates for a Carry Back.

The advantage to these buyers is that they get to buy a home when they can't qualify for a conventional loan, and enjoy all the benefits of home ownership while repairing their credit. People who have sold homes in short sales are primarily the people who fit in this category. A short sale does impact your credit, but for a shorter period of time than a foreclosure, typically less than two years. So, a carry back with a 3 or 5 year balloon would be an ideal means for them to get back into a home, while giving them a great shot at refinancing when they're able.

And there are other variables that can make this more attractive to the Seller. Currently, the minimum down payment required for an FHA loan is 3.5% of the sale price. On $120,000, that's $4,200. There's no reason that a Seller can't require a down payment on a Carry Back as well, so there's the possibility of an up-front lump sum payment, be it a 3, 5, or even 10% down payment. And many buyers would jump at the chance to purchase a home under those conditions!

Carry Backs are a very attractive option, under pretty specific conditions, but they have the possibility of bringing a Seller a handsome return for (in my opinion) a fairly low risk.

If you have any questions about Seller Carry Backs, as either a seller or buyer, don't hesitate to email, or call me!

Erin Goldbach

Designated Broker

Vanguard Platinum Realty

602 524 0186

Erin@ErinGoldbach.com

Some simple rules for investing

Thinking about investing in the Phoenix market? Here are some simple suggestions:

Rule #1: Leave your ego at home, this is not about you. It’s about your money. What do I mean by that? Simply this, 99% of the properties on the market are bank owned right now. As an investor, you’ll be one of hundreds of people vying for these properties, and the banks don’t care what the name on the purchase contract is, as long as the numbers are what they want. If the numbers are right, you’ll get the property. That’s the only thing that matters. Your last name, how nice a person you are, how fair you think your offer was, these things do not matter.

Rule #2: Cash means nothing. Let me repeat that: CASH MEANS NOTHING.

There is no real advantage to sellers for them to accept a cash offer over a conventional loan offer. No one is walking around with suitcases of cash, and even if they were, the sellers (the banks) have procedures that don’t speed up for anything (banks have one speed: slow, and at their pleasure). So the myth that a cash offer can close more quickly is just that, a myth. And in an environment like what we have now, where a decent condition property is getting 6, 10, 14 offers in a few days, the idea that cash will give you advantage is ridiculous, especially when they’ve got more than one cash offer.

Rule #3: Ask yourself what you intend to do with the property once you’ve purchased it. Do your intentions match market conditions? There are two basic scenarios when you’re talking about investment property A) “fix and flip” , this is when you buy a distressed property, rehab it, and sell it for top dollar. B) “buy and hold” this is buying an undervalued property, possibly, though not necessarily needing rehab, putting tenants in it, and holding onto the property for multiple years until market value has increased.
Right now, the market we’re in is more conducive to “buy and hold”, although there is still opportunity for a “fix and flip” strategy. But which is more appropriate for your goals?

Rule #4: Keep your emotions out of it. People tend to get emotionally invested in the properties they buy, understandably so. Once you’ve put time and energy into purchasing the property, refurbishing it, and possibly owning it for a period of years, it is very easy to develop an emotional attachment to a property, rather than keeping the investment aspect in perspective. You’ll save yourself from a lot of potential heartache if you remember that these properties are investments, nothing more.

Network Marketing!!

There are many strategies for drumming up business. Some are expensive, some are time intensive, some are pretty wacky, some work, some don't.

There is one, tried, true, cheap, effective PROVEN form of marketing that simply can't be beat!

That is NETWORK MARKETING.

What is NETWORK MARKETING? Simply getting people to tell other people how good your services or products are.

Think about it, when you need a plumber, or veterinarian, or mechanic, what's the FIRST thing you do?

You ask someone you know and trust who they use!

With NETWORK MARKETING, you build a group of people who work with you to build your business by getting you personal referrals. To put it another way, when the people you network with hear of someone who might need your products of services, they tell that person to call YOU!

And in return, you do the same for them!

It's THAT simple!!

And does it work? ABSOLUTELY!!!

I've been involved in a NETWORKING GROUP since I got my license six years ago. Without my NETWORKING GROUP, THE WEST VALLEY EXECUTIVES, I would not have survived in Real Estate this long.

In fact, in 2005 and 2006, HALF of my business came through the WEST VALLEY EXECUTIVES! Yes, you read that correctly, HALF!

And my group is just getting larger and stronger! We now have 25 members! Our meeting yesterday was dynamite!! Everyone in the room yesterday walked away with business!

The WEST VALLEY EXECUTIVES is THE primary tool in my plan to build my business! And with the continued growth we're seeing, I expect to get tons, and tons of business from The West Valley Executives!!

If you're a business owner in Phoenix, Peoria, or Glendale, and you'd like to increase your profits, come join us!!

We meet every Tuesday, at 7am, at the Marie Calendar's at 51st Ave and West Bell Road. (the food is really good too!)

Please bring $10 for breakfast, and at least 50 business cards!

Call me if you have questions!

Erin Goldbach

Owner/Broker

Vanguard Platinum Realty

602 524 0186

New Listing! Livin' in the Lap of Luxury!

I'm REALLY excited about this listing!! I just took it two days ago, and I'm amazed I don't have an offer yet!!!

Imagine how nice life would be if you could afford to live at a 5 Star Resort full time!!

Well, with this place, you're pretty close to realizing that dream!

Its a 1900sq/ft 3 bed 2.5 bath condo in the Fireside At Norterra Community, and it is Gorgeous! And the amenities that go along with it are fantastic!!

You've got a large kitchen/great room downstairs, with a den/library off the other side of the entryway. The kitchen is all tile and granite, with light colored 42 inch cabinets and built in microwave. There's a half bath downstairs, along with a laundry/storage room with utility sink. There's also a walk in pantry for the serious gourmand!

Upstairs is a split arrangement, with a small, built in desk just off the stairs.

The master suite is phenomenal! With a circular sitting area before you enter the main bedroom, it really is striking! The master bath has separate shower/garden tub, dual sinks and a walk in closet that could pass for a fourth bedroom!

There is a grass area right next to the unit with Playground equipment, and a walking trail just across from it.

At the Community center, which is covered by the HOA fees, you've got tennis courts, a 32ft rock climbing wall, and a full sized gym! with state of the art cardio and exercise machines, along with a free weight area.

There are two pools! A larger one with water park features! and the second set up as a lap pool with 4 lanes!

Best of All!! THIS IS NOT A SHORT SALE!! With a full price offer the seller can close in 30 days!!!

And all of that for $250,000!!! Amazing!!

The property is located on the east side of I-17, south of Care Free Highway, so freeway access and an easy commute are assured!!

If you'd like to see this incredible property, give me a call!

Erin Goldbach

Designated Broker

Vanguard Platinum Realty

602 524 0186