Investing in Real Estate is Easier than You Think!

Investing in Real Estate is Easier than You Think!

Today I wanted to talk to you about investing in real estate. I am personally a real estate investor and found my way into the real estate business this way. I was an attorney for twelve years and on the side I began investing in real estate. My passion for real estate investing led me into selling real estate, but I remain dedicated to growing my own wealth through real estate investing and helping others to do so also.

There are many ways to invest in real estate but there is one very simple way I prefer because it does not involve many people. All you need is one buyer, one loan and one property; this is single family properties. I previously invested in multi-unit properties and dreams of owning massive buildings (I would still love to), but that comes with an amount of complexity to it that makes it difficult to do on the side. I’m not making a living off of my real estate investments, but it’s something I do on the side just as I invest in my retirement fund and other investment vehicles to slowly accrue wealth. There are enough people in the D.C. area with disposable income that should be considering this possibility. However, this can be very easy to over think and over complicate.

At this moment, there is a marriage of two great things happening: you can obtain a quality single family home and receive a rent that’s relative to its price. It’s always been simple to do this, but it hasn’t always been so lucrative. Right now we have great interest rates and a number of neighborhoods where renters are willing to pay top dollar rent for properties even though you don’t have to pay top dollar to buy into those areas.

I highly encourage you to consider this strategy. It is not like winning the lottery by any means, but is very fixed and determinable. I hope you are as excited as we are about investing in D.C. properties. Thanks and have a great day!

How to Stage Your Home Properly

How to Stage Your Home Properly

Today I wanted to speak with you about the art of selling property. Where we begin is looking at the property itself and how it’s priced. We work with our clients to stage their property, thin out what you have and make the property more comfortable and easier to move around by de-cluttering. We also offer marketing and staging services.

We are among the top realtors in the country when it comes to continuously reinventing our marketing approach by dedicating entire staffs to working out agreements with our marketing partners for better distribution. With de-cluttering, we are ensuring that our professional photographers have something beautiful to capture.

With our marketing strategy, we provide something called “Command Central.” Command Central is a tool that tracks inquiries from yard signs and online search engines. More and more, the industry is moving towards online marketing which changes your pricing strategy in how you present your price online.

When you look to hire a realtor, I urge you to hire one that is savvy and is constantly looking for new approaches; this means finding a realtor who has a robust marketing budget and is willing to spend money to make money. Utilizing websites like Trulia and Zillow are the norm for us and we are constantly revaluating our marketing strategy. We are someone of the biggest budgeted amongst realtors and running ourselves as leaders and holding ourselves to higher level.

Thanks and I look forward to seeing you around the way.

Don't Think it is Time to Sell? Think Again!

Give your home the attention it deserves and sell it for the price you want!

We are constantly asked whether it is a good time to sell. In most neighborhoods, my clients and friends have reported that their homes are now more valuable as they ever were. A few factors play into this. There is a profound lack of inventory; we’re coming off of three straight years of 20-30% declines of homes being listed. This decline was most likely caused by the consumer’s lack of trust and confidence in the market after the downturn a few years back. I’m here to report that you should check in again, with us, and find out if this is the right time to consider selling. You may have noticed there are not many homes for sale in your community; it’s happening everywhere. The lack of inventory is affecting buyer behavior, causing them to react quickly because they have fewer choices. Every opportunity a buyer has to view a home is deemed more precious since opportunity doesn’t come around that often.

Another great aspect is the interest rate environment. The summer did bring us a roughly 1% increase in rates, but we have come down from that with three straight weeks of declining interest rates. Buyers are realizing that the market is moving very fast and are starting to compete. We know this market is very different than it was three years ago, so we encourage you to give us a call. You may find that it is just the time to sell. Thanks and have a great day!

Government Shutdown October 2013

Government Shutdown October 2013

Strictly going by the manner of the media, one would think the market is in shambles. This is not true, however, people are feeling pessimistic about the market as this summer brought a 1% rate increase, a potential sequester looming and the current government shutdown. The real issue in the D.C. market is the lack of available inventory. There has been a slight increase in supply from the slow summer months, but based on current trends and historical standards, we have hit a low point in regards to inventory. Depending on your location and price point, we’re coming off a two year stretch of inventory being down 20-30%. Although this is only one factor, it’s very powerful especially in terms of the current bumps we’ve been hitting.

In addition, even with the government shutdown, D.C. remains one of the best job markets in the country. In a robust job market with very young and strong professionals, having a job provides all the confidence for buying or renting a home. This provides a lot of room for growth and development. Another strong part of the market is the builder segment. Builders are still putting up condos and individuals are continuing to purchase homes on the resale market to flip.

Overall, the market is a mixed bag with very strong forces moving in both directions. The strongest factors appear to be the stable job market and the lack of inventory. The supply issue makes purchasing harder on buyers but works favorably for sellers. The rates are still historically low and hovering between 4.5-4.75% in most loan scenarios. This is still encouraging and the market appears to be balancing out.

If you have any other questions, please contact me as we are the top Keller Williams team. Thanks and I hope to see you out there!

Learn How to be a Competitor - with James Grant

Hello, everyone. Welcome back to our video blog!

Today, I have my partner, James Grant, with us. He has been the number one buyer’s agent on our team for years. He is great at connecting with buyers and understanding the emotional process.

I asked James to join us today because I wanted him to tell us what a buyer can do to become a competitor in our market today. We have a shortage of inventory and a large pool of buyers, so when you are looking for a home you need to be prepared.

James Grant says,

"There are a number of things a buyer can do before they even engage with a realtor.  One of the most important steps is getting pre-approved. Without a pre-approval letter, we have no idea what homes to look at and a seller will not take you seriously without it.

After you have the pre-approval letter, find a productive agent to connect with. As Carlos mentioned, we are in a crazy market. Homes are selling within a week! You need an agent who can help negotiate for you, knows how to make the best offer and can get it done quickly.

The final bit of advice is the scariest for most. Be decisive. Buying a home is a huge decision; I understand that. I want to make sure, though, that you don’t take too long deciding and miss out."

We will have a part two of this video where I will explain how to become more decisive: what types of criteria to look at and how to evaluate your needs.

If you have any questions please call us, we’d be more than happy to help!

Bidding Wars

Welcome to our video blog! Thank you for joining us! We are the number one Keller Williams Team in the region; we sell in the DC/Virginia area.  We are a highly efficient team and we hope that you will consider us if you run into a bidding war as a buyer.

Bidding wars can really make you lose your appetite for buying. It can be discouraging and intimidating when you find out what it may take to win. So, when we discuss whether a buyer should participate in a bidding war, often times buyers want to know if they do offer higher, will they be foolish, and what will the market do?

This is a great question. While we don’t have a crystal ball, it is important to know what is going on in our current market. We have a lack of inventory now and I think many buyers want to know will there soon be an increase in inventory, making buying a home less competitive.

Theoretically, that is possible, but in the Washington DC area we are coming on the third year of experiencing drops in inventory. What I can tell you is if the supply and demand does start to balance out, it won’t happen over night.

If you do have any information on these topics, send us links; send us articles. We are looking at whether sellers are under water; we are wondering where these people are. As we approach peak pricing and pass it, we can anticipate more houses coming on the market.

There are also sellers who are perfectly well positioned to sell but don’t know the benefit of doing so right now!

Thank you so much for joining us! Just know, we will follow this issue very carefully!

Rising Market Rates

Hi everyone, thanks for coming back to our real estate video blog!

So, my head has been spinning a little from the recent changes in rates. There have been a lot of articles out about rising interest rates. On June 4th an article came out titled “Will Higher Mortgage Rates Kill the Housing Market? Maybe Not”

What the article says is there is a cyclical loop when it comes to interest rates. It can be hard to know what is actually going on.

Well, to simplify things, as the economy improves it becomes less important to make money cheap.  Interest rates then rise and those rising rates can scare us in the real estate market. However, if rates are rising, it means the economy is improving. While it seems our economy is improving, we do not know if our economy is out of the woods nationally, though.

It’s very interesting as we observe rate movement; things that would appear to put downward pressure on the market (rate movement up) are happening because other things could place upward movement on the market (an improving economy, improving job market and consumer confidence).

What I can tell you as a real estate investor is, if it becomes a little more expensive to buy a property because of rising interest rates, it means the economy is improving. There are many buyers who have the ability to purchase my property if I am a seller.

I’d also like to note that we were at an all-time low in interest rates. Even if rates do increase to 5%, it isn’t the end of the world! I know I probably haven’t answered all your questions about rising interests rates, but I want you to know as we learn more and have more numerical information, we will share it with you!

We are data-driven here and love to research the real estate market! Thank you so much for joining us and I promise to keep you updated on the rising rates. If you have any specific questions please give us a call at 202.290.1313

Thanks for watching! We really do appreciate it!

A Good Listing Agent

Hi everyone. I wanted to talk to you about the value of a good listing agent. Recently we talked about the importance of a good buyer's agent and what qualities that individual should possess. A good listing agent, though, needs some different expertise.

When I got into real estate sales, I had already been involved in real estate. I had been an investor for more than a decade. I loved real estate and I was sure that my background as a lawyer and my passion would make me a great listing agent. I have to admit, though, it didn’t.

A good listing agent is a marketing maven. The number one thing a successful listing agent does is market the heck out of your property. They need to know how to present your home beautifully, how to represent and project the best qualities of your property.

The second part of their job is to make sure that your home is exposed everywhere, that the information is widely distributed. If they aren’t doing this, they are not a good listing agent.

Here, we understand the importance of marketing. Our marketing budget is six figures every year, $10,000-$20,000 a month depending on what we are doing. We can be very intense geographically and demographically. We are also one of the leading agent teams in the country for Zillow, which is the most visited Real Estate website online!

Give us a call 202.290.1313 so we can list your home the best way possible!

Finding a Good Buyers’ Agent in the DMV Area

Welcome back to our real estate blog!

We are the top team for Keller Williams in the D.C. and Maryland area. We also sell in Virginia! Today, I wanted to talk about the significance of finding a good buyers’ agent.

These days, D.C. is a highly educated area; people are very serious about engaging a realtor. We often find ourselves competing for the role of buyers’ agent.

When we talk with a possible client, we tell them without a doubt it is important to have an honest agent with integrity and who is competent. But that should just be your baseline. You want a realtor who is also extremely knowledgeable about the market, an agent who is passionate and learns as much as they can because they want to, not because they have to. That’s what sets us apart!

You also want a good negotiator, someone who truly understands how to get you as much as possible. A good buyers’ agent is highly motivated to make a buyer happy.

A good realtor will be an ambassador for you; they will represent you and your interests. And that buyers’ agent will have many extensive and positive relationships with people in your real estate market: consumers, agents, developers, etc.

I have a reputation among other agents that is fair and communicative, but I am still a bulldog on behalf of my clients. I am going to fight for you but do it in a way that doesn’t burn bridges, in a way that is ethical and fair.

We are ranked 11^th nationally with Keller Williams which is the number one brand in the country!

Thank you for watching our video blog and give us a call at 202.290.1313 so we can get started and represent you in today’s market!

Peak Selling Prices and Low Interest Rates Mean a Great Market for Everyone

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In 2007, the U.S. stock market peaked before the economy headed into recession. Today, the stock market is at about the same level. But this time, experts say, it’s different. Most companies have more cash and are more profitable in 2013 than 2007.

I think there are parallels between the stock market and the real estate market. Home prices are right around 2007 levels, but the market is healthier because of low interest rates. Just like the stock market, you are getting a better product for the same price. You can get more home for less money than in 2007 with a big difference in your monthly mortgage payment.

That’s the advantage for sellers. For buyers, the low rates mean you can return to the market at a peak price that’s still a better deal to sellers because of interest rates.

With interest rates right around the 4 percent mark, about one-third of your mortgage goes toward principal. That’s amazing compared to the days when between 5-8 percent of each payment applied toward principal.

Peak pricing for sellers and record-low interest rates for buyers means it’s a great time for both to enter today’s real estate market.

D.C. Condo Market: Great Time to Buy & Sell!

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Real estate statistics in our marketplace confirm what we’ve suspected – condo sales are hot! There is a lack of supply and high demand for condominiums throughout the metro D.C., Maryland and Virginia areas.

Stats show that condo sales in the region are up by 10 percent in 2012 over 2011 figures. And 10 percent is significant because it coincidentally matches the rate of real estate appreciation year over year.

Condos are selling quickly, too. Condo units sold in an average of 59 days in 2012, down from 76 days in 2011. Often, they sell even quicker. We sold our last four condos in 2013 in an average of just 7.5 days. That should give you a sense of the quick pace in the metro’s condominium market.

We at Eng Garcia Properties are obsessed with this type of invaluable data that helps us translate what the market is doing into outstanding marketing strategies that help when you are buying or selling real estate.

Are you ready to take advantage of D.C.’s red-hot condo market? Give us a call or drop me a line to learn more.

Keller Williams Named Tops in Customer Satisfaction for 2012

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In today’s shifting real estate market, it’s important to make sure your Realtor is devoted to your satisfaction as a customer.

And as a Keller Williams agency, we at Eng Garcia Properties are proud to announce that Keller Williams has been named the best in customer satisfaction for home buyers and sellers for 2012 by J.D. Power and Associates®. In addition, Keller Williams is the top real estate brand in terms of number of agents.

What does this mean for you as a client? It means that Eng Garcia is well-connected with our colleagues nationwide, making more real estate resources available to clients like you. And since we are a high-volume real estate firm, we have many of the best listings that attract buyers to our homes in Washington, Maryland and Virginia.

Overall, according to the report, customer satisfaction is down for both clients and sellers. Part of the reason, I think, is that markets are shifting and that makes it difficult to manage client expectations. Buyers and sellers simply don’t know what to accurately expect. And home buyers and sellers report that managing client expectations is important to them.

The good news is that we at Eng Garcia Properties do this well. The report states that sellers nationwide are getting an average of 89 percent of their asking price for their homes. In 2012, we were able to obtain an average of 95 percent. This indicates we’re doing a good job of monitoring the market and matching people with the homes that best suits their needs and lifestyle.

A big part of our success is our outstanding marketing processes that expose sellers’ homes to a wide audience. We also sift through the market data to help us effectively market and sell properties.

We hope you will drop us a line or call us so we can discuss the significance of this Number 1 ranking to you as a client.

Eng Garcia Properties (202) 290-1313 carlos@enggarcia.com

A Lack of Homes for Sale – Not Sequestration – Key to Health of Our Real Estate Market

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A funny thing happened here in the Washington, D.C., area while the rest of the nation went through our years-long economic downturn. Our local economy grew.

Earlier this year, The New York Times Magazine reported that our regional economy has expanded three times as much as the nation’s economy. In fact, three of the top 10 richest counties in the United States are around D.C. in Virginia and Maryland. 

With 40 percent of D.C.’s economy tied to federal spending, there has been much speculation about how the budget sequestration will affect us locally. Any change in federal spending, according to one source cited in the article, might soften the market, but certainly not cause a crash.

Of course, we at Eng Garcia Properties are most concerned with the effects on our real estate market. From my perspective, the low levels of real estate inventory – not the federal budget cuts – have the most potential for dampening our local economy.

I’ve talked a lot recently about the lack of homes on the market in D.C. and nearby in Virginia and Maryland. Locally and in nearby counties, we are looking at two straight years of 25-to-35 percent inventory reductions. Just 24 to 36 months ago, we had twice as much available housing stock as we have in early 2013.

We at Eng Garcia Properties are here to help you navigate this tight real estate market, whether you are a buyer or seller. Please call or email us, and we’ll be happy to answer your questions and get started.

DIY Home Buyers Beware: It’s a Competitive Jungle in D.C.

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We come across sophisticated buyers in the Washington, D.C., area who are capable of handling many aspects of a real estate transaction without a Realtor.

But there is a hidden danger for do-it-yourself real estate buyers: the inability to locate hard-to-find properties.

Even if you are skilled at real estate transactions, a plugged-in Realtor can be a terrific advocate to locate homes you could not otherwise find. This is particularly important in today’s competitive D.C.-area marketplace.

Home inventories have been slashed by more than 30 percent two years in a row! This is a fundamental sea change in our real estate market, and it makes locating great properties increasingly difficult without the aid of a Realtor.

You need a good Realtor to find properties and, most importantly, help you submit the winning bid over other potential buyers.

At Eng Garcia Properties, we are experienced at competing in this environment. We are your advocate to navigate the real estate market and network with other agents to find these little-publicized homes.

We have a proven, demonstrated track record at winning deals. Call or email us today, and we’ll get started fighting on your behalf to find you the perfect home in 2013’s ultra-competitive market.

We Need Sellers! Why it’s a Great Time in D.C. to List Your Home

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Now is the perfect time to sell your Washington, D.C.-area home. That’s because the real estate market has a profound lack of sellers. Inventory is down – way down.

And we’re seeking to engage you in an intelligent conversation about your options.

If the news was not good the last time you talked to a Realtor, the story for you has likely changed. Buyers and plentiful and numbers of sellers are low. It’s a great time to get a premium price for your real estate.

In 2011, real estate inventory in D.C. dropped by more than 30 percent.  And in 2012, it happened again – another year of a more than 30 percent decline in inventory.

Meanwhile, the sales market has been relatively flat, meaning that the number of real estate transactions has been stable. In 2011, transactions dropped by 3 percent. In 2012, the final figures will be down 1 percent or so.

Considering the profound lack of inventory, these statistics are remarkable. This signals that buyers are out there, and if you’re looking to sell, now is a great time to do so.

Our own experience backs these statistics. The buyer appetite to buy properties is there; what are missing are the properties themselves.

So if you’re looking to sell, we want to talk with you and explore your options in this awesome buyers’ market.

We are very good at marketing properties, and we’re plugged into a strong buyer audience through Internet marketing and other means. We have a solid reputation in the business and more than 100 transactions each year.

Why Interest Rates Should Pique Your Interest

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We wanted to remind you how important it is to take a good hard look at where interest rates are right now and consider whether that changes the real estate equation for you.  When I started buying properties in the nineties, interest rates were in the 8s, but today they are in the 3s to 4s.   Now you can get a 30-year fixed rate for 3.5% or less with some getting nearly 3% rates recently.  These rates have helped made home-buying affordable.

The interest rate makes a big difference.  Consider buying a $300,000 property with a typical 8% interest rate from the nineties, and your monthly mortgage payment will be $2,201.29.  Ouch!  But if you bought the same property today and took advantage of the rates, such as 3%, your monthly payment would drop by nearly $1,000 to $1,264.81.  If you’re on the fence about whether the real estate market is a good idea for you, think about those rates creeping up to say 5% and what that does to the same payment—it would go up by almost $400 from the 3% example.    

Keep in mind what the lower interest rate does for building up equity in your home.  With the high interest rates in the nineties, only about 7 or 8% of each mortgage payment covered principal versus interest. But with a 3 to 4% interest rate, about one-third of your payment goes to principal.   Imagine that!  Also, your total payment would be only 70% of what it would have been back in the nineties, and in absolute terms, your payments to principal are much greater, so you can accumulate equity much more quickly.  The rate at which you do so today in comparison to other times in history is remarkable.   

If you’re thinking about buying, now is the time to take advantage of the low interest rates.  A 30-year fixed-rate mortgage hovered at a record-low rate during 2012, but the rates won’t last forever, so there’s not a better time to buy than now. 

If you’d like to talk about getting into the market, call us today at 202-290-1313 or email us at carlos@enggarcia.com.

Low Interest Rates Mean Faster Equity

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You know that today’s historically low interest rates mean it’s a great time to buy a home, but did you also know that these rates in the 3-4 percent range can translate into building home equity more quickly than ever?

It’s true! That’s because lower rates result in a high percentage of each mortgage payment applied to your loan’s principle.

It’s amazing how things have changed since I started in the real estate business in the 1990s here in the Washington, D.C., area. Back then, interest rates were in the 7-8 percent range and about 7 or 8 percent of each mortgage payment went toward principle.

Today, 30 percent or more of a payment is applied to principle. Not only that, payments, in absolute dollars, are about 70 percent of what they were in the ’90s. It’s much easier now to afford the home of your dreams.

Call or email us, and we will be happy to discuss the implications of these low interest rates for you as a home buyer or seller. Truly, it’s a great time to buy investment properties or a primary residence.