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Welcome to the ultimate guide to buying a mobile home – an increasingly popular housing option that offers affordability, flexibility, and a unique lifestyle. Maybe you’re a first-time buyer searching for an affordable entry into homeownership, or perhaps you’re looking to downsize and embrace a more minimalist way of living. Understanding the ins and outs of buying a mobile home is crucial.
This Redfin article will walk you through the key considerations, benefits, and potential challenges associated with mobile homeownership. So whether you’re looking for mobile homes in Tallahassee, FL, mobile homes in Austin, TX, or just want to know more about this home type, read on to get started.
What is a mobile home?
A mobile home, also known as a manufactured home, is a type of prefabricated housing constructed in a factory and then transported to its intended location. Built to specific standards, these homes are typically placed on a foundation, either temporary or permanent, but once set, they’re not designed for frequent relocation. Their factory-built nature often makes them more affordable than traditionally constructed homes, and they can vary in size, with options ranging from single to multiple sections.
Types of mobile homes
Mobile homes come in various sizes and configurations to cater to different preferences and needs. Single-wide mobile homes are typically the most compact, with a narrower structure. They often have a single long hallway and are ideal for individuals or couples looking for an affordable, space-efficient option.
Double-wide mobile homes are twice the width of single-wide homes, offering more space and a more open floor plan. Triple-wide mobile homes are even larger and offer more room than single and double wide. With three separate sections, they provide generous living areas and multiple bedrooms and often include features like walk-in closets and spacious kitchens.
How much do mobile homes cost
The cost of a mobile home can vary widely based on factors such as size, location, features, and the overall quality of construction. You might find used or smaller mobile homes for around $20,000 to $40,000 on the lower end of the spectrum. These could be basic models with few amenities. Mid-range options with more square footage, modern features, and better finishes could range from $50,000 to $100,000. Larger, high-end mobile homes with premium features and customization might exceed $100,000. However, these are just general estimates, and prices can differ significantly based on regional housing markets and the specific offerings of manufacturers. Additionally, it’s essential to consider other costs such as land purchase or rental, foundation installation, utilities, and potential maintenance expenses.
How to finance a mobile home
Financing a mobile home is somewhat different from a traditional home loan. Interested buyers should explore personal loans, mobile home loans, or chattel loans, which are specifically designed for properties that don’t have a permanent foundation. Some banks, credit unions, and specialized lenders offer these loans.
Additionally, the U.S. Federal Housing Administration (FHA) provides insured loans for manufactured homes and lots. It’s essential to check the eligibility criteria, interest rates, and down payment requirements of each option. Securing financing may also depend on factors such as the age of the mobile home, whether it’s placed on owned or leased land, and if it’s categorized as real property or personal property in that region.
Additional expenses when you buy a mobile home
When buying a mobile home, several additional expenses exceed the initial purchase price. These can vary based on factors such as the type of mobile home, location, and your individual choices. A few of these factors include:
- Additional repairs and renovations. These costs should be factored in if you want to customize your mobile home with upgrades such as better appliances, flooring, or fixtures.
- Transportation. The cost could be significant if you’ve purchased a mobile home and need to move it. A single-wide mobile home can cost anywhere from $3,000-$9,000, depending on the miles moved, whereas a larger home can cost $15,000 or more.
- Site preparation. This includes preparing the land for the mobile home, including leveling, grading, and clearing.
- Land lease fees. If you place your mobile home in a park or community, there might be a monthly or annual fee.
- Taxes and insurance. Depending on local regulations, you must pay for property tax and insurance.
Pros of buying a mobile home
1. Affordability
One of the primary advantages of purchasing a mobile home is its affordability compared to traditional houses. Mobile homes tend to have lower upfront costs, making homeownership more accessible for people with limited budgets. Additionally, mobile homes often have lower property taxes and utility bills, contributing to long-term cost savings. This affordability can be particularly attractive for first-time homebuyers or those looking to downsize.
2. Faster ownership
Given their prefabricated nature, mobile homes can be produced, delivered, and set up much faster than a home built on-site.
3. Reduced maintenance
Typically, mobile homes have a smaller footprint than traditional homes, which can mean less maintenance and upkeep.
4. Flexibility
Some mobile homeowners appreciate the potential to relocate their home. While not a simple task, moving a mobile home is possible.
5. Community and amenities
Many mobile homes are located within dedicated communities or parks explicitly designed for mobile home residents. These communities often offer recreational facilities, swimming pools, community centers, and social events.
Cons of buying a mobile home
1. Depreciation
Unlike traditional houses, which tend to appreciate over time, mobile homes often depreciate. As the home gets older, its resale value may decline, making it more challenging to build equity. Depreciation can impact your long-term financial outlook and the potential return on your investment.
2. Financing challenges
Securing a loan for a mobile home can be more difficult than for a traditional home. Interest rates for mobile home loans might be higher, and the loan terms might not be as favorable.
3. Land ownership issues
If you don’t own the land where the mobile home is placed, you might have to pay monthly lot rent. There’s also the risk that the land’s owner could sell the property, forcing you to relocate your home.
4. Resale challenges
When it comes time to sell a mobile home, there can be challenges in finding buyers. The narrower pool of potential buyers and concerns about depreciation and perceived quality differences between mobile and traditional homes can lead to longer listing times and potentially lower resale prices.
5. Limited design opportunities
When you buy a mobile home, you might have fewer chances to design it your way because the layouts and structure are already set.
Buying a mobile home: the bottom line
Buyers should carefully weigh the advantages and considerations of purchasing a mobile home based on their preferences and circumstances. With the potential for affordability, flexibility, and a sense of community, mobile homes provide an opportunity for homeownership that aligns with diverse needs. However, approaching the decision with thorough research, budgeting, and a clear understanding of drawbacks, including depreciation and resale challenges, is essential.
Source: redfin.com
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Arguably, every industry across the board has been affected by the ever-changing advancements in technology. While the real estate space can generally be slow to adopt change, the property management industry has truly embraced the expanding role of technology in recent years. New technology is changing the way property managers do their jobs and run their businesses.
Developments in technology, and specifically cloud-based computing, have paved the way for property managers who seek improved processes to streamline business and boost profits. Taking advantage of these modern technologies is vital if companies want to remain competitive because they often equal significant time and cost savings. When they use the right solutions, property managers are able to provide more value to their clients and tenants, while running their own business more effectively.
Here are some of the main benefits property managers utilizing software tools to manage their properties have experienced:
- Affordability and availability: Property management software has become an affordable and accessible method for all types of managers and owners to integrate powerful tools into their business. Software applications hosted on the cloud are significantly more affordable than similar desktop applications of the past. Affordability and ease of integration means more property managers are able to work software into their operating budgets, allowing them to stay competitive with even larger property management firms.
- Reduced user error: The right solution provides powerful accounting, reporting and other operating functions that replace the need for a pen and paper or tedious double data entry between systems. Business performance can easily be tracked to monitor things like rental payments, work order status, and maintenance requests. By automating tasks, important information is automatically stored, fewer mistakes are made and tasks aren’t missed as often. Property managers have more time to focus on bigger picture items, like building relationships or tackling long-term business plans.
- Streamlined processes: Online software applications have integrated multiple management features so property managers only have to use one program to perform all of their important management tasks. Managers can efficiently and effectively market properties, process applications, screen tenants, sign lease agreements, review property performance, manage work orders, submit tax forms and more – all through one program that is easily accessible from a desktop, laptop or mobile device. The days of searching for important information buried under a stack of papers or hidden in a file cabinet are over.
- Improved rent collection: Online rental payment options give tenants the ability to make rent payments from the comfort of their home, while on vacation, at work, or from anywhere they can connect to the internet or access a smart device. Managers and owners no longer have to wait for rent checks to be delivered in person or via mail. Rental software typically allows tenants to use ACH or their credit/debit card to pay rent online, making the entire process easier on both tenants and property managers.
- Property protection: Access to background checks and credit reports is easier for property managers than ever before through the ability to instantly order tenant screening reports online. Instant access to tenant screening reports allows property managers to review an applicant’s credit, criminal and eviction history in more detail to make an informed decision about a potential tenant’s financial responsibility and behavior. These detailed reports help property managers select the most qualified tenants who will maintain the property, respect lease terms and pay rent on time.
Technology within the property management industry has evolved to be cost-effective, convenient, efficient and almost a necessity for managers to organize data, improve business processes and build relationships with tenants. Not only have systems developed to make the property management process easier, but today’s renters expect and appreciate the convenience of online services provided by their property manager. Managing and communicating with your tenants through their preferred method will help you reach them more effectively and lead to stronger landlord-tenant relationships.
[Graphic via Carol Lawhun]
Source: geekestateblog.com
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Affordable starter homes for first-time buyers are in great demand this year, leading to shrinking inventories and a competitive market. That means that buyers’ options are limited. This leads to increased competition for those homes that are available, spurring bidding wars and pricing out entry-level buyers.
A recent analysis by Zillow found that there were 8.6 percent fewer homes on the market in January 2016 than a year ago. Sellers have more negotiating power in competitive cities, mostly in the West, where job markets are hot, and demand for housing is heavy.
Buyers competing in a tight market must be prepared. They should get pre-approved for a mortgage and know their maximum price before house shopping so they can make a competitive offer. They should also take another look at their must-have list and decide where they’re willing to compromise, if necessary.
Here are five surefire signs that you are facing a competitive market for buyers.
1. Short time on market.
The fastest and easiest way to tell if sales are hot in your local market is to measure how quickly properties in your price range are selling. You can get a sense of the demand by simply tracking listings on real estate web sites.
A more accurate method is to review “median days on market” data from your local multiple listing service. You may not be able to access this data yourself, but your real estate agent should be able to get it for you. Look at the monthly and the year to year trends for the Zip codes where you are looking. If houses are selling in three months, that is clearly a seller’s market; in two months or less, you are probably looking at a hot, competitive market.
Another measure of demand is called “months’ supply.” It represents the number of months for the current inventory available for sale at the current rate of demand. A months’ supply of six months is considered balanced; the smaller the months’ supply, the hotter the market.
2. Jumps in sales.
An easy way to take your market’s temperature is to compare the current monthly sales rate to one or two years previous. Sales vary seasonally, but not over 5 percent when compared to the same month a year earlier.
If you see sales jump 10 percent or more, your market is taking off, and inventories may not be keeping up with demand, which is going to make it competitive for buyers. Follow local data on Zip codes or neighborhoods available on real estate listing sites, or ask your agent for information on sales trends.
3. List-to-price ratio.
When homes start selling at prices higher than their listing prices, it is a sure bet you are in a competitive market. If the list-to-price ratio is above 100%, the home sold for more than the list price. If it is less than 100%, the home sold for less than the list price.
MLSs make this statistic available to their members on a monthly basis, so you can get the data from your agent. Some also release it publicly. Some real estate web sites report local list-to-price ratios.
4. Deadlines on offers.
When sellers start placing deadlines for offers on their listings, obviously they are expecting more than one bid and they see no reason to extend the selling period. When you see a listing with deadlines, prepare for battle if you want the house.
5. Cash offers.
Cash offers, as opposed to offers financed by mortgages, are very attractive to sellers because they do not have to take the chance that a buyer’s financing will fall through or that an appraisal will come in low, and the seller might be asked to lower the price to save the deal.
In lower tier price ranges, many cash offers come from investors who are planning to flip the house or convert it into a rental. An increase in cash offers are a sign that competition is stiff. MLSs compile data on cash sales in local communities and Zip codes and you can get the information from your agent.
Soaring sales, prices above list, days on the market below two months, months’ supply below four months, cut-off dates—these are signs that buyers will likely face multi-bid situations. Be ready to move fast with the best offer you can make and be patient if the right deal takes months to appear. Even so, never bid on a house you do not like—you might end up living in it for many years to come.
Source: totalmortgage.com
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According to iPropertyManagement, just over one-third of American households are rental units, such as apartments, townhomes and even single-family residences. That means that of the approximately 332 million people residing in the United States, over 110 million rent.
With that many would-be tenants searching for a new rental unit at any given time, criminals will be out there looking for vulnerable people they can con out of their hard-earned money. However, there are some tell-tale signs that someone is trying to scam you in your apartment search.
Here’s what you need to look for so you don’t fall victim to common rental scams.
1. Don’t fall for misleading advertisements
Landlords and property managers often reach a potential renter by posting advertisements about their available units in newspapers, magazines and on a listing website. That translates into an unthinkable number of rental listings highlighting what’s on the market at any given time, not to mention all vacation rental listings out there.
Or, at least, what’s supposedly available. Rental listing scams are rampant, so it’s imperative to know how to differentiate between a legitimate advertisement and one full of lies.
Don’t be fooled by beautiful pictures advertising an apartment that looks perfect before doing your due diligence on all property matches. When searching for the next place to call your own, keep these suggestions in mind to avoid common rental scams.
2. Review apartment rental listings carefully
When reading advertisements, pay attention to the way it’s written. Skip listings with misspelled words, improper abbreviations or incomplete information. Details are important, so be extra wary if an apartment ad has errors, blank spaces or confusing terms.
Those kinds of no-nos are a potential clue the person posting the ad is not advertising a real place for rent. Or, maybe they aren’t really a legitimate landlord.
3. Is a month’s rent too low?
Another common rental scam is creating an environment that’s too good. For example, is the monthly rent unexpectedly low for what’s being promised? If the average cost to live in your dream neighborhood is $2,000 a month for a one-bedroom, be wary of apartments being advertised in the same vicinity for far less.
Seeing is believing, so be sure to tour the rental property before signing a lease. That investment of time could go a long way to preventing rental fraud.
4. Cash is not king for a security deposit or first month’s rent
Run, don’t walk, from any supposed landlord requesting cash for any debt relating to renting a property, like an application fee or a security deposit. Giving cash means it will be difficult to prove the payment was actually made. Therefore, even if the would-be landlord offers to provide a written receipt, that paper means nothing if they request money and the transaction is a rental scam.
Other payment methods
Other tips when paying rent, the security deposit or the first month’s rent include:
- Not wiring money. When you wire money, you run the risk of not having enough of a paper trail.
- Using the actual payee’s name and phone number on payment apps like Venmo to ensure the money reaches a legitimate destination
- Familiarizing yourself with staff personnel to gain reassurance you’re dealing with a legitimate landlord
The more information you have, the better you can protect yourself from the bad people out there trying to engage in rental scams.
5. Avoid landlords who will not meet in person
It’s said a picture is worth a thousand words, but sometimes, a photo is not always what it seems. Anyone can create and post breathtaking images, its amenities and the surrounding area in an online listing, hoping viewers will like what they see. Therefore, it’s imperative to meet the property manager, landlord or their authorized agent in person before signing on the dotted line.
And, of course, visit the apartment you’re interested in to ensure posted pictures of the abode match the place depicted in the photos. Walking through the rental properties that may become your home is the best way to decide if you like the place. You might feel a vibe you don’t like or realize the available storage space isn’t sufficient for your needs.
Don’t be satisfied with a virtual tour, because the apartment in the video may not be the one you actually rent. If you have to insist on a personal walk-through before renting, you might want to consider walking away instead. This is a sign it could be a rental scam.
Unusual circumstances
A different set of challenges arise when extenuating circumstances prevent a potential tenant from touring a property before renting. One example is if you live out of town and are unable to travel to a new city to visit the apartment prior to signing a lease and moving in. While it’s best to avoid that situation, there are steps to take to decrease the likelihood of falling for a fraudulent listing.
They include:
- Asking a friend or relative to check the place out for you
- Checking the property address online
- Surfing Google Earth for additional details
- Requesting the landlord provide references from prior tenants
6. Vet the landlord
Researching a supposed landlord before renting from them can go a long way to preventing fraud.
One way to do that is by checking the website of the county auditor or county recorder where the rental is. That should help you determine who owns the property you want to rent. Be extra careful if it’s difficult to decipher ownership because that could make it easier for someone to perpetrate a fraud.
Hit the internet
While perusing government websites about your would-be landlord, check the criminal courts, too. It could reveal a supposed landlord’s checkered past or their clean background.
Another good place to look online is the county’s municipal court, or wherever you file rental disputes. Does the property owner sue to evict many tenants? How often do they win those cases?
And yet another website to peruse is the Better Business Bureau in the city where the property is or where the landlord has their headquarters. Consumers should report both positive and negative interactions with the business community, so a quick check of their website could reveal whether the landlord or their rental company has ever perpetrated rental scams.
7. Read the lease. Really.
No matter how honest or direct a landlord or property manager might appear, don’t solely rely on a rental listing to decipher what an apartment and its community actually offer.
When you sign a lease, you’re entering into a contract obligating you to perform certain acts, like pay rent on time. The document also explains what the landlord is responsible for, like providing working heat.
If you don’t understand or agree with everything contained in a lease, voice your concerns to the landlord before signing it. It’s too late afterward.
Avoid inexplicable blank spaces on a lease
Don’t sign a lease that’s incomplete. Any missing but pertinent information, such as monthly cost, the rental term and details about who is financially responsible for utilities, are immediate red flags the contact isn’t legitimate.
Rental agreements should also be error-free
A lease agreement is a written contract between a landlord or property manager and a tenant. When a would-be tenant and landlord sign a rental agreement, they enter into a contract requiring certain acts of each of them.
For example, the tenant agrees to pay the rent according to the terms of the contract. The landlord promises to perform whatever the lease promises.
However, a lease pocked with typos, or missing or inaccurate information could be a sign the document is a fraud.
8. Avoid an immediate move-in request
A supposed landlord who insists a potential tenant move in immediately, before a personal walk-through of the place, does not sound legitimate. If nothing else, they sound desperate to rent their unit.
When you tour an apartment and meet the property manager or their representative, they’re meeting with you, too. Normally, an owner takes an interest in who lives in their units. Not taking the time to vet you, as well, should worry you.
Be concerned if they don’t demonstrate that level of concern for their property.
What to do if you’re a victim of rental scams
Unfortunately, despite best efforts not to fall victim to fraudsters, it still happens. If it does, you can fight back.
An initial response is to contact local law enforcement to report the crime. Provide as much information as you can when you contact local authorities to help them in their search for the fraudulent landlord.
Try canceling your method of payment of the security deposit or rent you paid in advance. If you paid cash, you’re out of luck. Using a traceable method, such as a check or credit card, gives you some some recourse to take them to small claims court.
If you wrote a check, contact your bank to determine if somehow, the check was not yet cashed. If it was, report the fraud to your bank. You can also try to stop the payment.
File all the complaints
Don’t forget to file a fraud report with the Federal Trade Commission. While the feds won’t resolve your individual complaint, they use submitted reports to investigate rental scams, unethical business practices and cases of fraud.
The Internet Crime Complaint Center, also known as the IC3, offers another tool for fighting rental fraud. Anyone who believes they’ve been a victim of an Internet crime may file a complaint through that website.
Enjoy a successful apartment search
Finding a great place to live that suits your lifestyle and is affordable is challenging enough, and the prospect of fraud makes it that much more difficult. Create a paper trail of payments for rent or deposits by paying by credit card or check, never by cash. Meet the landlord or their representative personally when you tour the premises and read the written rental agreement thoroughly before signing.
Then, sit back and enjoy your new surroundings.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or finance advice as they may deem it necessary.
Source: rent.com
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For years, residents in Solano County heard about a mysterious group buying up thousands of acres of farmland and making millionaires out of property owners. The agricultural land had been owned by the same families for decades — some of it for more than a century.
But the company, Flannery Associates, did not say what its plans were for the land, dotted with towering wind turbines and sheep grazing on pastureland. It paid several times market value and made offers on properties that were not for sale, according to officials familiar with the land purchases.
Then, last week, a survey was sent to residents asking them what they thought about “a new city with tens of thousands of new homes, a large solar energy farm, orchards with over a million new trees, and over ten thousand acres of new parks and open space,” according to a screenshot of the survey shared with the Los Angeles Times.
That’s when it became clear that Flannery Associates had big plans for the rural landscape.
Over a five-year period, the company became the largest landowner in Solano County after purchasing more than 55,000 acres of undeveloped land. The company has paid more than $800 million since 2018, according to court records.
U.S. Rep. John Garamendi, who represents the region, said for years he and other officials were unable to determine who was behind the dizzying land grab. Flannery Associates has purchased land that was restricted to open space and agricultural purposes under a state conservation program.
The company seeks to rezone the land, which would require approval by multiple state and county agencies and wouldn’t be as simple as asking residents to vote on the issue, officials familiar with the process said. But the lack of residential zoning in the area does not seem to be a factor for Flannery Associates.
Since its buying jag began, the company has filed suit in federal court against a group of families the firm purchased property from, seeking $510 million. Flannery Associates claims the families conspired to inflate their property values in a scheme to get more money.
Garamendi (D-Walnut Grove) lambasted the company for how it has handled the purchases and for not working with local residents.
“Flannery Associates is using secrecy, bully and mobster tactics to force generational farm families to sell,” Garamendi said during an informational committee hearing on Tuesday that addressed the company’s actions.
For years, residents and politicians speculated that Flannery Associates was backed by foreign investors seeking to spy on Travis Air Force Base. Located in Solano County, the base is one of the busiest military facilities in the nation. Most of the land surrounding the base is now owned by Flannery Associates, according to county documents.
Some of the company’s financial backers were revealed in an article last week by the New York Times, and they include a cadre of tech entrepreneurs and venture capitalists.
On the eastern end of Solano County, the city of Rio Vista is now surrounded by Flannery Associates land. Mayor Ronald Kott said that, like many Solano County officials, he had not been approached by anyone from the company to discuss plans for the land.
Although he’s now aware of the company’s goals and some of the financial backers, he’s still unsure how his city of 10,000 residents found itself surrounded by land owned by a group of tech billionaires.
“I have more questions than answers,” Kott said. “Our destiny is going to be determined by whatever they’re going to do.”
Flannery Associates has said little since it was formed as a limited liability company in the state of Delaware in 2018. The company’s actions were first reported by ABC7’s San Francisco Bay Area news station, KGO, which said a mysterious company was purchasing large amounts of land.
Flannery Associates is led by Jan Sramek, a former Goldman Sachs investor who found fame and fortune by the time he was 22, according to a 2010 Business Insider article. Sramek previously worked out of Goldman’s offices in London, but his LinkedIn profile now lists Fairfield, Calif., in Solano County as his primary location.
In a self-help book he co-wrote, Sramek says if given the chance to give his younger self a bit of advice, he would quote Ayn Rand: “The question isn’t who is going to let me; it’s who is going to stop me.”
He did not immediately respond to requests for comment.
For years, Garamendi and U.S. Rep Mike Thompson (D-St. Helena) tried to pierce through the opaque veil that surrounded Flannery Associates. Then, in the last week, representatives of the company attempted to arrange sit-down meetings with the Congress members and the survey was sent out to residents.
The survey said that the issue of a new city might be on next year’s ballot, which was news to Garamendi and Thompson. There have been no efforts made by any groups to get a new measure on the ballot for this project, according to officials. The survey also said the developers would replace the county’s existing aqueduct — calling it “one of the most polluted in California” — generate tax revenue for schools and be entirely funded by private sector money.
Thompson said the company’s actions had raised food and national security concerns. He’s asked the U.S. Air Force, the Treasury Department, the Defense Department and the FBI to investigate the land purchases. Thompson met with representatives from the company, including Sramek, according to KGO.
“And I don’t think they had a clear understanding of the significance of livestock in Solano County,” Thompson said. “And it was my impression that they kind of pooh-poohed the agricultural value of the land.”
Garamendi plans to meet with representatives from Flannery Associates at a later time, according to his office.
Solano County Supervisor Monica Brown is not familiar with Silicon Valley and spent most of her professional career as a schoolteacher. She heard from friends who received the survey and wondered if the company had the best interests of the county’s current residents in mind.
“We’re growing food and helping people. Why would you stop economic growth like that?” she told the Los Angeles Times. “Why would they spend $800 million and not be transparent about it?”
Flannery Associates has purchased more than 140 parcels of land, according to court records and county assessor data. That number is growing every day, officials say.
But in its lawsuit, the company claims that it overpaid and is seeking to claw back some of its money.
Attorneys for Flannery Associates have referenced personal relationships and text messages among neighbors in court documents — neighbors who could be influenced, they argue, by a scheme to drive up asking prices for the land.
The lawsuit has had a chilling effect on some landowners in the Montezuma Hills and Jebson Prairie area of the county. Multiple residents in the area declined to comment about the company for fear of being named in a lawsuit.
Others who spoke on condition of anonymity to avoid retaliation by the company say they feel as though Flannery Associates will target anyone who speaks out about the company’s aggressive tactics to buy land.
Garamendi called the lawsuit a “heavy-handed, despicable intimidation tactic.” He said that the company managed to purchase all the land without any of the current governmental safeguards in place to flag the issue. He said that, in the future, information about large land sales, and who is buying and selling, would be vital for lawmakers and residents.
Thompson introduced a bill that was inspired by the Flannery Associates land purchases that would provide more effective tools for state agencies to investigate large land sales.
Through a spokesperson, Flannery Associates said members of the company “care deeply about the future of Solano County and California and believe their best days are ahead.”
The company said the project aims to bring “good-paying jobs, affordable housing, clean energy, sustainable infrastructure, open space, and a healthy environment” to Solano County.
“We are excited to start working with residents and elected officials, as well as with Travis Air Force Base, on making that happen,” spokesperson Brian Brokaw said.
The company says it resorted to secrecy while purchasing the land to avoid rampant real estate speculation. But it has not disclosed specific details about the scope of its project. Representatives for Flannery Associates are meeting with community leaders to present their vision, according to Brokaw.
Michael Moritz, venture capitalist and longtime San Francisco resident, is one of the financial backers behind the company. In a 2017 email viewed by the New York Times, Moritz described an opportunity to invest in a new California city. He explained how investors could transform farmland into a bustling metropolis.
Sequoia Heritage, the $15-billion wealth management firm Moritz founded in 2010, did not immediately respond to requests for comment.
But in a February New York Times opinion piece, Moritz described some of his frustration with San Francisco and how the city had become “a prize example of how we Democrats have become our own worst enemy.”
He described legislators who deceived voters with tweaks and rule changes to the city’s charter so they could stay in power and drive seismic shifts in the local government.
“The core of the issue, in San Francisco and other cities, is that government is more malleable at the city level than at higher levels of government,” Moritz wrote. “If the U.S. Constitution requires decades and a chisel and hammer to change, San Francisco’s City Charter is like a live Google doc controlled by manipulative copy editors.”
Other financial backers with Flannery Associates include LinkedIn co-founder Reid Hoffman; Andreessen Horowitz venture capital firm investors Marc Andreessen and Chris Dixon; payments company Stripe co-founders Patrick and John Collison; Emerson Collective founder Laurene Powell Jobs; and entrepreneurs turned investors Nat Friedman and Daniel Gross, a Flannery Associates spokesperson confirmed.
Although those names were not repeated at an agricultural committee hearing on Tuesday, lawmakers were thinking of the financial backers’ actions.
Flannery Associates’ land buys threaten the makeup of eastern Solano County, mainly the land under the California Land Conservation Act, which sets aside properties for agricultural purposes and open space. The penalty for not obeying that policy does not seem to dissuade Flannery Associates, former West Sacramento Mayor Christopher Cabaldon said during the committee hearing.
The act, also known as the Williamson Act, can include a fee for the incompatible structures built on the land. For billionaire property owners, that could just be seen as the price of doing business.
“In some sense,” he said, the conservation program has “been like a flag that says, ‘Buy here.’”
The Flannery Associates project illustrates just how weak current tools are for dealing with a project of this size. Secrecy further hampers state regulators unaware of a buyer’s intent for the land, Cabaldon said.
Brokaw, the Flannery Associates spokesperson, said the company wouldn’t comment on specific issues brought up during the committee hearing but was meeting with county and state leaders to address their concerns.
Officials and landowners worry that much of the infrastructure needed to build a new city is just not present in eastern Solano County. And an influx of development would almost certainly drive out any farmers from the region.
But another scenario that could present itself is Flannery Associates moving ahead with its project only to have it fall apart years later.
“Even if the project is rejected locally … you can’t reset the clock,” Cabaldon said. “You cannot turn it back and say, ‘OK, no harm, no foul. Let’s just return to the way that this community was two years ago.’ Because the owners will be gone, the family farmers will have left.”
Times staff writers Jessica Garrison and Ryan Fonseca contributed to this report.
Source: latimes.com
Apache is functioning normally
As the fall elections near, a host of issues important to renters, homeowners, and the nation’s housing economy await attention. So far the focus has been on other national priorities, but a number of major problems confront the housing sector.
Important Housing Issues
The housing industry was a major contributing factor in the recession, and even now it remains essential to the health of our economy. Here are some of the most pressing needs:
- Rising demand and inadequate inventories are driving up rents and home prices simultaneously, leaving consumers with few choices for affordable housing in the nation’s hottest housing markets.
- Most homeowners still live in houses that are worth less than they were worth in 2006. Millions of homeowners are still recovering from the worst housing crash since the Great Depression, especially those who live the heartland where prices are rising slower than costs and in foreclosure-ravaged states like Florida and Nevada.
- Crippling levels of student loan debt, the legacy of soaring college costs, have postponed or ended the homeownership dreams of millions of educated young adults.
- Soaring land prices and restrictive zoning and siting laws are making it nearly impossible to build affordable high-density rental or condo housing in the core cities and inner suburbs.
- Homeownership is lower than it has been in 50 years.
- The housing sector should be an engine of economic growth, averaging at least 1.6 million units a year over the next decade but so far it has accounted for just 2.8 percent of annual GDP this decade, significantly less than the 4.3 percent share averaged in the 1980s and 1990s.
- Taken over by the government in 2009, the huge companies that own half the nation’s mortgages, Freddie Mac and Fannie Mae, are still in limbo. In seven years, the Congress nor the White House have not been able to agree on what their roles should be. One result is the lack of a vibrant private label secondary mortgage market to provide much-needed credit for housing expansion.
Where We Stand Now
Some of these issues have lingered for years; some are new. All of them are taking their toll on the national standard of living.
Though the politicians who win elections may or may not be good for housing, there is new evidence that elections themselves are a good thing for home sales.
In an analysis of home sales dating back to 1990, the California Association of Realtors found that the sales growth is usually positive during an election year. In fact, C.A.R. found that growth in home sales at the end of an election year actually outperforms non-election years by 7.1 percentage points.
During the past five election cycles, sales in the final months of the year picked up, rising by 5.3 percent on average compared with -1.8 percent during non-election years. With the exception of December 2004, every single month of the final quarter saw robust growth in home sales during election years.
The pattern for California home prices is similar. C.A.R. also found little evidence of a negative effect on home prices during an election year. In fact, home price growth in California during the past five election cycles was slightly better than the long-run average of 5.6 percent.
Again, the effects were most pronounced during the final months of the year when demand—and therefore, upward pressure on prices—were boosted by roughly 5.6 percentage points following the elections.
The Verdict?
Too soon to tell. Candidates need to address housing issues before we can make guesses about the future. On the bright side, though, election season may give parts of the country a small boost.
Source: totalmortgage.com
Apache is functioning normally
Mortgage rates ticked down modestly after job openings data for July came out yesterday, but rates remain elevated.
Freddie Mac‘s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, shows the 30-year fixed rate averaged 7.18% as of Aug. 31, down from last week’s 7.23%. By contrast, the 30-year fixed-rate mortgage was at 5.66% a year ago at this time.
“Despite continued high rates, low inventory is keeping house prices steady,” said Sam Khater, Freddie Mac’s chief economist. “Recent volatility makes it difficult to forecast where rates will go next, but we should have a better gauge in September as the Federal Reserve determines their next steps regarding interest rate hikes.”
Other indices showed lower mortgage rates.
HousingWire’s Mortgage Rates Center showed Optimal Blue’s 30-year fixed rate for conventional loans at 7.07% on Wednesday, compared to 7.22% the previous week. At Mortgage News Daily on Wednesday, the 30-year fixed rate for conventional loans was 7.06%, down from 7.36% the previous week.
What to expect with the Fed ?
At the last Federal Open Market Committee meeting, Federal Reserve Chair Jerome Powell emphasized the importance of July’s core Personal Consumption Expenditure (PCE) Price Index for the Fed’s future path. The results came in today and the PCE price index jumped slightly from year-ago levels but grew at a mild monthly rate, which is more in line with the Fed’s 2% inflation target.
Meanwhile, the labor market is cooling as U.S. job openings dropped in July. However, more robust data points will be required to confidently assert that inflation is moving in the desired direction, said Realtor.com Economist Jiayi Xu.
“Despite mortgage rates hitting 20-year highs, we still expect them to reverse course and trend lower as we gather more solid evidence of inflation improvements in the coming months,” added Xu.
What does it mean for the housing market ?
Incentivized by return-to-office demands, some buyers have adjusted to the higher mortgage rate environment and are moving forward with their home search, according to Realtor.com’s 2023 Hottest Zip Codes report. However, first-time homebuyers are facing greater challenges to make such adjustments.
“Fortunately, new homes remain an option for many, as builders are continuing to add homes with a somewhat greater focus on affordable price points,” said Xu.
What to expect for the fall ?
Last fall when mortgage rates surged, homebuyers adjusted pretty quickly, noted Bright MLS Chief Economist Lisa Sturtevant. First, they held back a little, only to come roaring back to the market in 2023. However, this time could be different, she said.
Rates above 7% are now coupled with home prices near record highs.
“The desire for homeownership is still strong, but there are going to be more and more prospective buyers for whom the numbers simply don’t pencil out anymore at 7%+ rates,” added Sturtevant.
That said, mortgage applications rose last week in spite of the rates being at a 22-year high. However, economists expect applications will decline significantly in the weeks ahead, bringing a shift in the housing market.
“As demand contracts, supply will still remain low, so the slower market will not necessarily translate into significant price declines,” said Sturtevant.
Source: housingwire.com
Apache is functioning normally
Well, it looks as if a foreclosure moratorium has made its way to the Sunshine state, though it’s not as cut and dry as similar proposals.
The program is voluntary, and relies on the member institutions of the Florida Bankers Association and the Florida Credit Union League to hold off on foreclosures and foreclosure sales for 45 days on primary residences.
At this point, it’s too early to tell who will be onboard, but it’s likely to get good support considering all the related action by larger lenders and individual states nationwide over the past few weeks.
Last week, ING Direct offered to suspend foreclosures until March, following similar action by Chase, Citi, and a number of other large mortgage lenders.
Fannie Mae and Freddie Mac have also put the freeze on foreclosures through the holidays, which should allow about 16,000 families to stay in their homes, at least in the short term.
Florida is one of the hardest hit states in terms of foreclosure activity, ranking third in rate of foreclosure (1 in every 157 homes) and second in number of foreclosure filings (54,324 in October), just behind California.
Default filings have plummeted in California thanks to a new piece of legislation that makes if more difficult for lenders to foreclose on borrowers.
The new law, SB 1137, requires lenders to spend more time and effort on making contact with at-risk borrowers before serving foreclosure papers.
It still remains to be seen whether any of these initiatives will have a lasting and meaningful impact, though a low mortgage-rate environment coupled with a bit of extra time could allow some to get into more affordable mortgages.
(photo: delta407)
Source: thetruthaboutmortgage.com
Apache is functioning normally
Foreclosure filings were reported on 279,561 U.S. properties in October, a five percent increase from the previous month and a 25 percent increase from the same period a year earlier, RealtyTrac reported today.
However, thanks to recent legislation, foreclosure filings have dropped precipitously in key states, most notably, California.
In the Golden State, overall foreclosure activity was down by double-digit percentages for the second straight month, and default filings were a whopping 44 percent below year-ago levels.
Despite this, October marked the 34th consecutive month foreclosure filings have risen, with one in every 452 U.S. households receiving a notice during the month.
However, that streak may soon come to an end, as evidenced by the growing number of foreclosure prevention initiatives being carried out by both individual mortgage lenders and the government.
“While the intention behind this legislation — to prevent more foreclosures — is admirable, without a more integrated approach that includes significant loan modifications, the net effect may be merely delaying inevitable foreclosures,” said James J. Saccacio, CEO of RealtyTrac, in a release.
“And in the meantime, the apparent slowing of foreclosure activity understates the severity of the foreclosure problem in these states.”
As usual, Nevada, Arizona, and Florida posted the top state foreclosure rates, and each saw both a double-digit month-to-month and year-over-year increase, largely because no legislation is in place to artificially slow the pace.
Webster Bank Extends Foreclosure Moratorium
Webster Bank has become the latest mortgage lender to freeze foreclosures, placing a 90-day moratorium on Webster-owned mortgages and expanding its mortgage assistance program to carry out more loan modifications.
The bank will temporarily suspend foreclosure activity for a minimum of 90 days for all qualified borrowers who are more than 30 days in arrears as of November 4, who own their home as a principal residence and are able to document income to support an affordable mortgage payment.
Webster joins a growing number of banks and lenders who have recently pledged similar support, including both Citi and Chase, who initiated like programs over the past week and change.
(photo: johncohen)
Source: thetruthaboutmortgage.com