Now that you know short sales, lets get you up to date on the other popular distressed sale, REO’s.

What is an REO?

REO stands for Real Estate Owned. This means it is real estate owned by a bank or lender. REO is essentially the last step in the foreclosure process.

In California, trust deeds are used as opposed to mortgages. When a borrower falls behind on their payments to the lender, the lender starts the foreclosure process. After proper notice and time, an appointed trustee holds an auction to sell the home, the proceeds of which will be used to pay the lender back.

If the property does not sell at the trustee’s sale, the lender takes ownership and the property becomes Real Estate Owned by the lender, or REO.

Read: What is an REO?
Read: What is a Deed of Trust or Trust Deed?

Pros of Buying an REO

• Price – REOs can be an incredible value. REOs can be priced well below market value.
• Bank Owned – Foreclosure is complete so the approval process will be much quicker (as opposed to a short sale).
• Liens – The foreclosure process will wipe out almost all liens, except tax liens which will be paid for by the bank.

Cons of Buying an REO

• You Get What You See – REOs have typically been neglected for years by a delinquent homeowner and could possibly have been sitting empty for many months. Properties fall into disrepair quickly. Banks are typically unwilling to make repairs to the property, so what you see is what you get.
• Hidden Expenses – Normally, when homes are sold, the sellers have to disclose all known defects of the home. However, when the seller is a bank, the manager of which has probably never been to the home, they cannot disclose these material facts. There may be significant unknown defects of the home, or troublesome neighbors that could lead to some unknown expenses. Make sure and get a home inspection so you know what you are getting into.
• Competition – REOs are becoming few and far between and most buyers want them. This can drive up the price or create bidding wars. CAPropertyFinder.com listed an REO that brought in nearly 20 offers and sold for more than $20,000 above list price.
• Occupied Properties – If the property is occupied, it could be costly and timely to get them out

Read: California Eviction Process – Part 1: What It Means For Investors
Read: California Eviction Process – Part 2: Cash For Keys
Read: California Eviction Process – Part 3: Property Is Occupied by a Borrower
Read: California Eviction Process – Part 4: Tenant Occupancy

Still Considering Buying an REO?

Do you think the pros of buying an REO outweigh the cons? If you do, then you are like a lot of people out there. Make sure you consider everything before buying an REO. Work with an experienced REO Real Estate Broker. These brokers know the banks involved, they know the systems they use and more importantly, they know how to get the REO deals done.

Banks like REO deals to be clean and simple. They do not want to see an offer full of contingencies and with little money down. They have already lost a lot of money on the property and want out with as much cash down as possible. Your broker will be able craft an offer that is as attractive for the bank as possible, while still looking out for your needs.

Make sure you get a home inspection. REOs are exempt from some of the most important disclosures, the Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ). These documents disclose everything about the property like if there is a leaky roof, if the plumbing is shotty, if there is a bug in the electrical system, if the HVAC is constantly malfunctioning, etc.

Get a good home inspection done. It’s unlikely that the bank will do anything about it, but at least you will know all the issues you need to repair after you buy it. Knowing is half the battle, because it at least allows you to plan for the expenses.

Related Searches:

All REOs for Sale
REOs for Sale in Glendale
REOs for Sale in Newport Beach
REOs for Sale in Pasadena
REOs for Sale in Santa Monica
REOs for Sale in Woodland Hills

Now that you know about REOs and Short Sales, next we will discuss some tips to make sure you capitalize on all the resources available to you.

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An encumbrance is a right that burdens or diminishes the value of a property; it impedes it in some way. There are different kinds of encumbrances. Encumbrances can be both financial or non-financial in nature. They can also affect the properties transfer-ability or the property’s use.

Financial Encumbrances

• Liens – Money or financial encumbrances are also called liens.
• Mortgages/Trust Deeds – Loans to purchase real property. These are the most common types of liens.
• Tax Liens – Liens against property for unpaid property taxes.
• HOA Liens – Liens against property for unpaid HOA dues.
• Mechanics Liens – Liens against property for monies owed to contractors who performed work on the property.

Non-Financial Encumbrances

• Covenants, Conditions and Restrictions (CC&Rs) – Limit the use of a property. These can be set backs issued by municipal code or can be the governing documents of a homeowners association. They can limit anything from the maximum height and size of buildings built on a property to things you are allowed to do on that property.
• Easements – A right that a person or entity has in the property of another person or entity. In other words, it is a right to use someone else’s property without owning that property. There are many different kinds of easements that exist for many different reasons.
• Encroachments – Something, such as a tree limb, bushes, roof overhang, or fence that sticks out over the property line onto the adjacent property.

Encumbrances, like easements, should be recorded to be enforced, so make sure you check title to see if there are any encumbrances. Your real estate broker or escrow officer can pull a title report for you to review. An encumbrance could limit your ability to even acquire the property so make sure you are aware before getting to far into it.

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By now you’ve already done a substantial amount of research based on our tips from the previous three chapters, “Searching for a Home to Live in“, “Finding the Right Rental Property” and “Researching the Area“. It’s pretty likely that you came across the phrase “short sale” or “short pay”.

What is a Short Sale?”

A Short Sale or Short Pay is a type of real estate sale. It is not a foreclosure nor is it an REO. When a homeowner (borrower) is behind on their mortgage, sometimes the lender will allow the buyer to do a short sale. When you buy a short sale, you are buying it from the borrower, not the bank. However, the big catch is that you buy it SUBJECT TO THE BANK’S APPROVAL.

In today’s short sale market, the value of the home almost never exceeds the outstanding debt balance on the home. In other words, the property is worth less than is owed on it. For example, there may be a property that is worth $250,000 today, however, five years ago, that property could quite reasonably have been purchased for $500,000 with a loan of close to $500,000. Loans amortize slowly, so today that almost $500,000 loan is still, almost $500,000. Only now, the property is only worth $250,000.

Read: How Much Cash Should I Put Down As A Down Payment On My Home Loan?

As a result of the bank being owed more than the home is worth, they get the right to approve the sale. Once an offer is obtained, it is submitted to the bank for approval. If the bank approves the sale, escrow can be opened and the sale can be completed. If the bank rejects, as a result of getting perhaps $225,000 (a $250,000 price minus 10% for commissions and closing costs) on an almost $500,000 outstanding loan, the home remains on the market.

The home will remain on the market until an offer is accepted by the bank or the bank decides to foreclose on the homeowner. When the bank forecloses, the property either sells at a trustee’s sale or it becomes REO (Real Estate Owned); which we will cover in the next chapter.

Read: What is a Short Sale?

Pros of Buying a Short Sale

• Price – Short sales can be an incredible value. They are difficult to get. Often times, this is factored into the price. Short sales can be priced well below market value.
• Property Condition – Most often the property owner is still living in the home so the property is not sitting vacant, like in the case of an REO. While short sale owners might not take the greatest care of their home, they will at least prevent things like leaks, plumbing, or electrical problems because they are living there. If the home was an REO, these things would sit unnoticed until a bank or broker got involved.

Cons of Buying a Short Sale

• Time – Short sales are subject to bank approval which means the process can take months. Short sales are known to drag on for several months and still fall apart.
• Second Mortgages – Some short sales have second mortgages on top of the primary first mortgage. The second mortgage lender must also approve the short sale. This can double the complications and time lines associated with buying a short sale.
• Other Liens – When dealing with a short sale there can be other liens (money owed) on title such as tax liens, HOA liens and mechanics liens. These will need to be paid before the home can be transferred. Either the bank or the buyer will need to pay for these.

Still Considering Buying a Short Sale?

If the cons didn’t outweigh the pros for you, there are still some things you need to consider. First and foremost, work with a real estate broker. Not just any real estate broker, an actual short sale specialist. A short sale specialist will be able to help you research title ahead of time and find out if there are any hidden liens.

Tax liens are very common, and if a homeowner is behind on the mortgage, they probably stopped paying the property taxes too. Property taxes are anywhere from 1-1.5% of the value of the property annually. If the taxes are 2-3 years delinquent, this amount could be 10s of thousands of dollars.

Just like with property taxes, the homeowner probably stopped paying HOA dues too. HOA dues range anywhere from as low as $40 per month for a single family home in an HOA to as much as $1,000s per month for high end HOAs with lots of amenities and services. It is safe too assume that HOA dues could be 2-3 years delinquent.

If the homeowner did any major renovations to the home, there could also be money owed to the contractor who performed the work. These liens are called mechanics liens.

Most importantly, your short sale specialist will find out which lender(s) is (are) involved. Short sales are dependent on the relationships with the bank. If your real estate broker knows the lender, that can be a huge benefit. They can hopefully help convince the bank that this short sale is the best path towards getting the most of their loan back. Unfortunately, no short sale specialist can guarantee success with short sales.

Contact us today at 1-800-287-1808 or homes@capropertyfinder.com to speak to one of our short sale specialists about finding the right property and what it will take to obtain it.

Related Searches:

All Short Sales for Sale
Short Sales for Sale in Glendale
Short Sales for Sale in Newport Beach
Short Sales for Sale in Pasadena
Short Sales for Sale in Santa Monica
Short Sales for Sale in Woodland Hills

Now that you’ve considered buying a short sale, what about an REO?

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Buying a home to rent means a different set of investment criteria than searching for a home to live in. If you will be looking for a place to live yourself, there is personal value attached to aspects of the home. Your happiness is an important factor, which can come at a price. When buying a rental property, however, it all comes down to dollar and cents. You will not be living there so you need to primarily consider your return on investment.

Features of the home

Generally speaking, you should not put the same amount of money into upgrades on your rental property than your own home. It’s important to find a happy balance between creating a rental home with appeal and investing in home improvements that take minimal upkeep. Before investing too much in amenities and home upgrades, consider that renters typically do not concern themselves with the condition of the property as much as a homeowner would. Look for upgrades that are affordable and inexpensive to maintain.

Examples of good upgrades:

• Landscaping adds curb appeal to a single family home. Careful not to go too overboard with landscaping that requires constant maintenance. Stick to perennial shrubbery and plants that only require 2-3 visits by the gardener per year.
• Lighting fixtures and ceiling fans add value to your home, take little to no maintenance, and are appealing to renters.
• Window covers are inexpensive and give a fresh look to any room.
• Paint the interior walls one color throughout the house. This means you will only have to keep one color for retouches.
• Reface kitchen cabinets instead of replacing them. A good contractor can make your cabinets look brand new at a fraction of the cost of new cabinets.
• Kitchen and bathroom sink faucets aren’t too expensive, depending on your preference, but even a less expensive model can replace old fixtures and make your home appear less dated. Upgrading the kitchen and bathrooms are the best places to put your money into. At the bare minimum, update the toilet seats/covers and shower curtain.
• Repaint or replace the front door of the house. This door, remember, is one of the first things a prospective renter will encounter at your property.
• Installing an electronic thermostat is a cheap and noticeable way to modernize your rental property.
• An intrusion alarm is inexpensive an adds a lot of benefit and peace of mind to renters.

Upgrades that might not yield a return on the investment:

• Granite counter tops are a good addition to YOUR home, but an expensive upgrade for a rental property. You must likely won’t recoup the investment in rent so spare the expense.
• Hot-tubs are fun but they are necessary to maintain even when the home is vacant.
• Hardwood floors become scratched, especially by renters who aren’t worried about the lifespan of the floors. Sanding and refinishing is much more expensive than carpet cleaning or replacement.
• Many single family rental homes do not provide a refrigerator. If you choose to afford this feature, make sure to advertise that benefit to renters. The same applies for washers and dryers.

Choosing the location of your rental property

Most of the same factors that affect the value of your personal home will also help appreciate your rental property like proximity to schools, hospitals, and major freeways. Here are additional factors to consider when choosing the location of your rental property.

• Proximity to your first home. If you plan on maintaining the home yourself, showing it to prospective renters, or routinely checking up on the property, you should consider how far it is from where you live. Traveling adds to the expense of maintaining your investment.
• What are nearby rents going for? Rents can fluctuate more more quickly than home values, so this is something you want to stay on top of throughout your search. Take into account how many rental properties are available nearby. A surplus of available rentals in any area might mean you should look elsewhere or be prepared to compete with these rentals in your price point or home features.
• Are you looking at a property in a community with an Homeowners Association (HOA)? If investing in a community with an HOA, make sure to read the bylaws because some HOAs restrict renting or the number of rental properties allowed in the community at any given point. Having to be on a waiting list to rent your investment home isn’t something you want to discover after you buy the property.

Rental Home Expenses

• Mortgage – The interest, principle, and private mortgage insurance (PMI) payment due each month if you financed.
• Utilities – Electricity, water, gas, sewage, trash removal, cable, & Internet.
• HOA Fees – If in a community with a Homeowners association, what are the monthly fees? How much can they rise year to year? Are there additional shared expenses to consider with the HOA?

  Read: What is a Homeowners Association?

  Read: Researching a Homeowners Association

• Property Taxes – Usually a portion is added to your mortgage payment each month that covers the yearly expense.
• Insurance – Most lenders require you keep adequate home insurance if you finance your home. You also might want to a better policy that covers floods, earthquakes, or fires, depending on where the home is located.
• Capital Improvements – Plan for future expenses long in advance. Have your contractor inspect the home before you purchase. He or she will be able to give you estimated useful life expectancy of the major components of the home such as flooring, roof, plumbing, electrical, HVAC, pools, etc. Your contractor can also give you estimated replacement costs. Divide the replacement cost by the number of months remaining in the life of the component, then you know how much you need to save each month. Do not let a $2,000 HVAC replacement sneak up on you.
• Turn Costs – This is how much it costs to replace tenants. You will often need to repaint or at least retouch areas, clean the house, replace light bulbs, and shampoo carpets.
• Vacancy – Plan accordingly for vacancy at the end of the lease to give you time to make the repairs necessary for the next tenant as well as market the property for rent.
• Pets – Will you allow pets? If so, plan for the additional expenses associated with having a dog in the home. Allowing pets means you WILL need to replace the carpet. Consider charging a non-refundable pet deposit. If you choose to NOT allow dogs, consider how many people you will preclude. You will be chopping your prospective tenant base in half by not allowing dogs.
• Marketing – Will you market the home for rent yourself or hire a property management company? One takes time, both cost money.

Create a ProForma which is a series of cash flows. Plot out your projected monthly rent, allowing for adequate vacancy between tenants. Plot out all the operating expenses above. Once you have these incomes and expenses plotted, you can see what your monthly free cash flow will look like. This can be used to calculate Capitalization Rates and Rates of Returns to decide if this is the right investment for you.

Properties that are occupied

If you’re buying a property already occupied, consider if the lease is current. If you end up having to evict, the process can be lengthy. You will also not be collecting rent during this time but are still responsible for paying expenses. Not all occupied homes are a bad investment. You might want to see if you can negotiate a lease with the current leaseholders.

Read: California Eviction Process – Part 1: What It Means For Investors

Read: California Eviction Process – Part 2: Cash for Keys

Read: California Eviction Process – Part 4: Tenant Occupancy

Finding a suitable property to rent takes a lot of hard work, but not an unmanageable amount. A real estate broker with experience helping buyers find rental properties will be able to help with most of the above.

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You’ve come a long way in your search for a home. At this point in the process, you’ve determined what you can afford, set your investment criteria, chosen your real estate agent and team members, and researched the area. Now comes the fun part… searching for homes!

How to begin searching for homes

• Your broker should regularly provide an updated list with homes that meet your investment criteria in the area you are looking. You should know about every new home that hits the market.
• A good buyers agent will not only search the MLS, but put the word out to their network of real estate brokers that they have a ready, willing, and able buyer. Sometimes agents have “pocket listings” which means they are working with a potential seller who doesn’t want to list their home for sale, but would entertain offers if the right buyer came along.
• Use online real estate searches like at CAPropertyFinder.com. Doing your own Internet research is useful for refining your investment criteria. You can view the size, features, and amenities of homes to get a better idea of what you can expect in a given area.
• If you work with a good buyers agent like our team at CAPropertyFinder.com, you shouldn’t be able to find any new properties that your agent hasn’t already shown you. It’s their job to inform you of new listings. If you come across a home you have a question about or want to see DO NOT contact the seller or broker directly. Instead DO send the home information to your broker and let him contact the listing broker or seller. After all, that is what he is being paid to do.
• Drive the area you are looking with your family or broker. You might come across For Sale By Owner properties that just hit the market. Canvassing a neighborhood also allows you to see a home for sale that you might have overlooked because the pictures or property description on the MLS didn’t accurately describe the property.
• Visit Open Houses to get a feel for the types of homes in a neighborhood. Neighbors will often come by these open houses which gives you a chance to ask them questions and get a feel for the vibe of the community. If you come without your buyers agent, be sure to tell the listing broker or agent on duty that you’re working with a buyers agent.

  Read: Open House Etiquette

Save Time With “Presearch”

The more research you do before viewing homes in person, the better. Your time is valuable and doing your homework will reduce the amount of time wasted during the process of finding homes for sale.

• View all available photographs and virtual tours online.
• Search the property on Google Maps and use Street View to see the home and surrounding properties as if you were standing right there.

• Ask your agent to call the listing broker before you visit the property. This will save you time if, for example, the home is Pending Sale but the broker hasn’t updated the listing status yet. Sometimes, a home is listed on MLS but the seller already has a buyer in place.
• The listing broker can inform your agent if they have already received multiple offers, possibly above list price, and indicated that they are most likely going to accept one of those offers. You might not want to spend your time visiting this home unless you are willing to get into a bidding war.

Why do all this research?

There isn’t always a lot of time to make up your mind if you want to make an offer on a home, especially in today’s real estate market. Doing your homework should help expedite your decision making process.

Read: Don’t Be Afraid To Act or You Might Miss Out on a Great Home

Another benefit of research is that you know what to look for when you arrive at the home. You might overlook some of your investment criteria or forget to ask important questions if you aren’t working from a list. It’s easy to get caught up in the remodeled kitchen or spacious master bathroom and forget to notice some of the smaller items on your list.

Visiting a home in person

No pictures, video, or description can beat viewing a home in person. Even with an adequate amount of research and homework, there will come a time when you need to get off your computer and visit the property in person.

Your agent will be able to tell you if the home is vacant, whether it’s okay to come by during specified periods of time, or if the seller will only show the home by appointment.

When visiting a home, be mindful and courteous of the property. Don’t walk through the grass, wipe your feet before entering, and avoid touching personal items. A good rule of thumb is to treat the home as you’d want someone to treat your home for sale.

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Can you imagine moving into a home in southern California, waking up the following Monday to go to work, and sitting in traffic for 60 minutes to drive 12 miles? Or how about buying a property with a scenic view only to discover that a few months later that landscape is replaced by a new subdivision? Not to mention the year of construction outside your window. Did you notice how much available street parking there was on your block? Perfect for your 4 cars… until each one is broken into and you realize why everyone else in your neighborhood keeps their cars in their garages.

You’ve learned why it’s so important to build a real estate team before buying a home. A contractor, home inspector, and real estate appraiser can provide valuable opinions about the condition of the home. Now it’s time to learn about the importance of researching an area before buying a home. This includes the city, sub-market, community, neighborhood, and street that you’re about to reside in.

Here are some tips to help you research the area you are looking in:

• Visit the property during high traffic times to discover how backed-up the streets in your neighborhood become. Also check out the nearest freeway entrance for the same information. Determine what your daily commute will look like to and from work or your children’s schools. Sigalert.com is a valuable tool for viewing traffic patterns on southern California freeways.

  Read: Southern California Traffic – It’s a Fact of Life, Work with it

• LA Crime Map (http://projects.latimes.com/mapping-la/crime/) is a data­base of Los Angeles County crime reports. The website is a wonderful tool for learning about the safety of a city, neighborhood, street, or even particular home or condominium. LA Crime Map uses data compiled from the Los Angeles Po­lice De­part­ment and Los Angeles County Sher­iff’s De­part­ment to cre­ate maps and reports for the areas covered by these agencies.
• Pay attention to the proximity of your future home to hospitals. This detail could literally be a life saver.

  Read: Best Hospitals in the Los Angeles Area – Live Near These!

• Another important thing to consider is the area schools. Buying a home near a school, even if you don’t have children, can be a valuable investment. Proximity to schools can add to the resale value of your home.

  Read: Where Should I Live? How About Near The Best Elementary Schools in Los Angeles

  Read: Where Should I Live? How About Near The Best Middle Schools in Los Angeles

  Read: Where Should I Live? How About Near The Best High Schools in Los Angeles

• Are you a frequent traveler for work or pleasure? Research nearby airports and how easy they are to reach. When you factor in the cost of travel and commute expenses, you might be able to afford a home in a better, more convenient neighborhood. Be careful here. While being close to an airport has benefits on travel days, being too close adds lots of noise and air pollution.

  Read: Los Angeles Travel Tips – Choosing the Right Airport Time of Day and Airline

• Research the value of homes nearby homes. Never buy the most expensive home in the neighborhood. The principle of regression dictates that the lower priced homes in the neighborhood will pull down the price of the most expensive home in the neighborhood. The opposite is also true, more expensive homes pull up the prices of less expensive homes. Therefore, it does not make sense to stretch for a nicer home in the same neighborhood, rather stretch for a nicer neighborhood. Educate yourself about the gamut of home values, number of foreclosures, vacant homes, and rentals in the area. A great tool for this is research is Zillow.com
• Check with the local department of building and planning to see what types of permits have been pulled and issued for new development and construction. This will prevent you from moving next door to a construction site and might also steer you towards a part of town that will be rising in value due to the construction of a new shopping center. Do not assume that your broker will do this for you.
• Is there a Starbucks or Chick-Fil-A nearby? Major higher end franchises like these spend millions of dollars on market research to determine good places to open their restaurants or stores. This isn’t a guarantee, but chances are, if there are major higher end franchises like these in the area, it is probably a relatively good place to live.
• Search the Internet. What’s it like living in the area? If you’re lucky, you might find valuable articles like the ones below.

  Read: I Would Live in Woodland Hills CA… Would You?

  Read: I Would Live in Los Feliz CA… Would You?

  Read: Living in Downtown Los Angeles – An Interview With Dakota Weiss

• Ask people in the community what it’s like living there. Talk to street cops, the Fed Ex delivery person, Mail Man, and local residents like your future neighbors. Police officers can be desensitized to crime and might instinctively tell you that it’s a decent place to live because they’ve seen worse. A good question to ask a local police officer is, “Would you let your family live here?” Talking with local folks is some of the best research you can do. The majority of these people will be honest with you if tell them you are considering moving to the area and ask for their advice.

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Are you looking for a discount real estate agent in Los Angeles? How about a real estate broker who will list your home at a reduced commission rate? You’ve come to the right place!

We are CAPropertyFinder.com–Your partners in California Real Estate. We are the first real estate company named after a dot com because we believe that an online presence is more important in today’s world than a brick-and-mortar office location.

We are a mobile, streamlined, and technologically savvy company. Because of this, we’re able to provide full service real estate marketing for home sellers, with results that will exceed your expectations, at discounted fees.

There are many situations where we are able to offer California sellers a discounted commission rate when listing their home for sale. Other times, we can offer buyers a discounted buying rate, usually in the form of a rebate.

If you are interested in working with a discount real estate broker that can offer full service amenities, contact us today at 1-800-287-1808 or use the contact form below. Let us know when you contact us that you’re interested in our special rates and we’ll help you determine if you qualify.

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An easement is a right that a person or entity has in the property of another person or entity. In other words, it is a right to use someone else’s property without owning that property. There are many different kinds of easements that exist for many different reasons.

For example, Utility Companies have “easements in gross” over all properties to service the utilities. If a utility, such as electricity, has a problem in the line that runs on your property, it is going to affect a large amount of people. The utility company has the right to enter onto your property to service the utility.

Private individuals can have easements too. For example, if you owned a rural property that was completely “land locked” meaning it had no road access, you would be granted an easement over one of the other properties for ingress and egress. This would would allow you to access the adjoining property to reach roads.

Who are the Parties Involved in an Easement?

• Dominant Tenement – the person or entity who has the rights over the others property. In the examples above, the utility company and the land locked owner who has ingress and egress rights over the other property owner. Bob has dominant tenement over Kevin.
• Servient Tenement – the person or entity who owns the property over which someone else has rights. In the examples above, all the property owners with utility lines on their property or the owner of the land adjacent to the road who has to allow the neighbor to enter and leave their property. Kevin has servient tenement under Bob.

Easements should be recorded to be enforced, so make sure you check title to see if there are any easements. Your real estate broker or escrow officer can pull a title report for you to review. An easement is not necessarily a bad thing, just make sure you are aware of it before making a purchase decision.

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Guest blog by Jeff Lichtenstein, a Realtor in Palm Beach FL

As I’m writing this today, I’m managing 60 active listings with 19 homes under contract. I work an 80 hour work week, which could easily be a lot more if I didn’t work smart. Realtors know that I come in way earlier than anyone else (often between 5-6 am) and work harder than anyone else. Other Realtors joke that they couldn’t do what I do because they wouldn’t have a “life”. My first year or two in real estate, I would agree that I didn’t have much free time. Over the years though, I’ve learned how to balance, working an 80 hour work week while maintaining a strong family and personal life.

1. “Early to bed and early to rise makes a man healthy, wealthy, and wise. — Benjamin Franklin”

Benjamin Franklin was right on. Being from the Midwest, the news came on at 10pm (as opposed to eastern time 11pm). I’ve always gone to bed by 10. I still get my 7 hours of sleep. This lets me get up at 5 AM and to work by 6 AM. If you want solitude go to a real estate office before 8:30 in the morning! I work at 2-3 times the pace before 8:30AM. I’m fresh and there are no interruptions. I get my paperwork done and prepare for the day. Also, the kids are not up at 5 or 6 in the morning so I’m not missing anything.

2. Dry cleaning

I leave my dry cleaning bag out. How to save 1560 minutes a year! The drycleaners pick the bag up and deliver the dry-cleaning. If I had to worry about dropping and picking up the dry cleaning, it would cost me ½ hour to an hour a week. ½ hour times 4 weeks is 2 hours a month. 2 hours x 12 months is 24 hours. I’d rather have the full day in life than pick up the dry cleaning. Keep a journal of everything you do in your week. You will be shocked at how many time savers there are.

3. Delegate

Be like Ronald Reagan and delegate everything. I email and give power to delegate to my administrative person and my assistant Realtor. I let the receptionist set up showings. Train your staff correctly the first time and it will save you hours later on.

4. Gadgets

There are all sorts of technology to speed up time. Our team uses an app called Note*spark (www.notespark.com). This lets us share all of our showing instructions so we aren’t in a desperate search for phone numbers and emails. Use technology.

5. Simplify

I have one laptop. I don’t use a desktop or even an Ipad for daily use. I take it everywhere I go. I have found that having too much stuff can slow you up.

6. Family Time

Set appointments for family. Friday Breakfasts with the kids! I have been doing this since my oldest was in kindergarten. In 9 years I’ve missed 3 Friday breakfasts. It’s a great time to connect with the kids and give your spouse a day off.

7. Exercise

I work out with a trainer one day a week at 5:30 PM and we have a family appointment on Saturdays. Again, set an appointment. The family work out is terrific as we all do it together with the trainer. It takes care of a work out and family time all in one!

8. Saturday OFF

I take Saturday off. If a deal is being negotiated or there is an emergency, I’ll take the call. Otherwise, I let my assistant deal with it. If a buyer wants to meet on Saturday only, than we refer it out. I change my message for that day to defer all calls to my assistant. I also tell my clients up front about how I operate. If you talk to them about it in the beginning, you won’t have issues, as people are very understanding once it’s explained to them. If you don’t have an assistant, partner up with another Realtor and help them out for a day they want off.

9. Don’t socialize at the office

Office time is work time. Don’t hang out at the water cooler and gossip.

10. Date Night

Saturday night is for me and my wife. Standing date. Leave the Smart Phone in the car. Enough said.

11. Positive Outlook

A positive outlook also helps get me through the tough parts of the day. Each morning I write down 2 people that I’m grateful for and why. Real estate is a tough career. We are always on call. However other industries have their pitfalls. In a previous life, I worked in textile sales. I traveled 35 weeks a year. Others commute from the suburbs to New York and spend 2 hours on a train. We are home each night and our commute is usually negligible. We also set our own hours. Be grateful for what you have and use those advantages to balance your life.

Jeff Lichtenstein is a Florida Realtor specializing in Palm Beach real estate. Jeff is a mild-mannered but driven real estate agent dedicated to his customers. He is an early riser, most often at work at 5 or 6 am to put in an average of 80 hours per week. You can reach Jeff via his website www.jeffrealty.com, telephone at (561) 346-8383 or e-mail jeff@jeffrealty.com.

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Escrow provides safety

It is highly recommended that you ALWAYS use escrow when conducting a real estate transaction. No professional would ever recommend you do it without, and it’s almost never done. If you found a willing buyer and a willing seller, however, you are not required to use escrow.

According to Jason Annotti, Escrow Officer with Chartwell Escrow in Sherman Oaks, CA, “Escrow provides a level of safety to all parties involved and ensures that all parties perform their obligations under a Purchase and Sale Agreement.” That is why you never see transactions without escrow.

Read the full interview with Jason Annotti at: What is escrow? Interview with Escrow Officer Jason Annotti?

What does an escrow officer do?

Before choosing your escrow officer you need to understand what an escrow officer really does. Nicole Phillips, Escrow Officer with Advantage Tile in Westlake Village, CA says “Escrow is the neutral third party between the buyer and seller in a real estate transaction. We hold the funds to pay the bills at the close and affiliate the loan document signing.” They perform a multitude of tasks from ordering payoff demands on existing liens, to preparing preliminary/final closing statements (HUD-1 forms), and getting the transfer recorded on title.

Who chooses the escrow officer?

The escrow officer is chosen in the standard California Association of Realtors California Residential Purchase Agreement and Joint Escrow Instructions (the standard purchase agreement used in the state of California on 1-4 unit residential properties). Generally, your broker will recommend you write it up as “seller choice” or “any reputable company”. This is because it’s typical to let the seller choose the escrow company. It’s their property, so it generally adds a level of comfort for the seller.

This, of course, is not a requirement. You should feel free to name your own escrow company in the purchase agreement; just understand that it will affect your offer.

How Do I Find an Escrow Company or Officer?

Seek Referrals. Nicole Phillips says “The easiest way to find an Escrow Officer is through your Real Estate Agent. Your Agent usually has a team of affiliates assembled to assist in making the transaction as smooth as possible for everyone involved. You can of course find a Title and Escrow company online.”

If you found your real estate broker at CAPropertyFinder.com they’ve completed 10s-100s of properties in the last 12 months. They know a lot of escrow officers and have worked with both the best and worst. Friends, family members and neighbors may be able to recommend a good one from a previous real estate transaction.

Just like with anything you can always “Google it”. Search for an escrow officer who is local. As with real estate brokers, you want someone familiar with the area. With escrow, this is very important. Cities, counties and municipalities have different rules about everything. Some charge fees for things such as water/sewer certifications, retro-fits, transfer taxes and many more. A local escrow officer will not miss items like this and therefore not delay your real estate transaction.

What Should I Look For in an Escrow Officer?

• Licensed with the California Department of Corporations.
• One Who “Works Like You” – If you prefer email to phone calls, your escrow officer should be very willing to do that. If you are only available on nights and weekends, see if you can get an escrow officer who also can also work with your schedule.
• Organization – This is the most important trait an escrow officer can have. They have various events and transactions to coordinate in different locations, with different people, who use different processes and different time lines. An escrow officer MUST be organized.

Read the full interview with Nicole Phillips at: California Escrow Officer – Interview with Nicole Phillips

Now that you’ve secured financing, assembled a team, and prepared for buying a home, the next step is to find the home.

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