Ralph J. Pratt GRI, ABR, CMP

Be very careful, if you are just starting out to build a real estate portfoilo make sure you have some money to survive. I mean the market can and will eat you alive. Hard money? Why? Lets say you get a property at 50% below the market and your get a hard money loan at 12% and in most case's 16%, If you plan on fixing and staging the property where does that money come from, even if you do the labor you have to pay for the materials. The hard money people don't come cheap, they charge some serious up front fee's and add some more to the loan. If you have good credit you don't need these people. Also you have real estate fees and escrow costs involed to sell it afterwards. Don't forget the payment to the hard money people. Go to my website or someone's and use the mortgage calulator you'll see what I mean.

Homes in the Sacto area, thats where I am also, are not moving to fast as a matter of fact down right slow. If you plan on asking top dollar you'll be on the market for six months in most areas. The hard money guy will make the profit and you'll do all the work. Be careful! I know these late night real estate info commercials make it sound so easy, must people just throw good money after bad money spent on a bunch of books that may as well be written in Greek. If you don't know the business get your licsence and learn how its done in the real world or find an honest Realtor to help you. There are 100% loans out there but there are restiction to them. Its not easy trying to flip property with no money down and no money to back you up! Again be very careful. Good luck. - Sat Jul 21 2007, 17:48

Hi Susan,
That is what we in the trades, as a licensed contractor and a licensed Real Estate person/ Realtor, would call "Grandfatherd in". Only homes built today have to meet title 24 building codes. The state of california requires certain things to be done like the water heater to be strapped to meet earth quake reqirements for the fire departments, that smoke detectors be installed that meet standards of the time it was built. I mean a home that was built in 1950 had no detectors must now have a least one in the hallway near the bedrooms.

Your question has to do with engery efficiency and back in the 1950's it was not an issue. The new title 24 requirements are much stricter like the "seer ratings" of the air conditioning and the "duct sealing". Make sure your home inspector checks for these things. You are having a home inspection aren't you? Please say yes!

You can ask the seller to to do things like "Pay" to have these things done but they are only obligated to do the required things in the purchase contract , not bring it up to todays standards.

ps
SMUD has some progams set up just for this issue and yes it cost somebody. - Sun Jul 15 2007, 08:54

Well as of 07/14/07 there are 387 single family homes for sale in the Folsom area MLS. Since 1/15/07 440 have sold. The critiera for these stats are homes from $1,000 to 5,000,000 from 0-25 bedrooms and the same for baths. I'd say not too shaby. As long as your priced correctly a home in the City of Folsom should sell within 90 days. - Sat Jul 14 2007, 14:36

No, unless your purchase agreement calls for it to be done. If your contract to purchase says that the seller will agree to it then they have to or cancell the offer and return your deposit. It is a contract with terms and conditions, does your contact cover this? Did you agree to a "as-is as- seen" and not asked your agent or rep to cover this? Make sure it is in the agreement. In California most purchase agreements give you a set time to perform any and all the inspections that you feel need to be done. If you don't like what the reports have to say you can cancell in writing the offer to buy within the time frame set in the contract. - Wed Jun 27 2007, 17:24

Pretty darn loose on values, I went there for the first time and submitted a listing. The Z-factor popped up and I fell out of my chair! It was comparing a brand new custom built home in an establised neighborhood of homes 30 years old. I have to give them credit here, they have great maps! But to say a 30 year old home stacks up to a brand new home sends the wrong price opinion to folks looking to buy in the area. Needless to say I yanked it right out of Zillow.com. Maybe some day the all knowning computer will be able to go and look at what the property really has going for it. Hey maybe some day it will be able to estimate how much it costs to build a spec home. Materials have not gone down like property values have, the z-factor can't factor in that yet, so I'm sticking with the tried and true method of comparing property myself. - Sat Jun 23 2007, 19:48