Lyons Realty’s agents evaluate investment properties, rate properties by highest potential overall return, provide research tools, and connect investors to real estate service providers who can help them perform the proper due diligence  (pre-acquisition) and maintain the property (post-acquisition). As a result, we help individuals and families make sound investment decisions for their future.

According to the Mortgage Bankers Association (MBA), home ownership will remain a dominant goal of the US population, however, various data sources show an upward trend in investor activity in certain U.S. housing markets, especially in the coastal areas where home price appreciation has been outsized, attracting investment capital. While rising interest rates could depress the growth of the investor market, 59% of investment buyers paid cash in 2010.

Stability (Stocks vs. Real Estate)

Historically most Americans have chosen to participate in the stock market for investment income and retirement growth thus spurring many online stock investing platforms such as E*TRADE, Scottrade, and TD Ameritrade.

Real estate, however, provides comparable returns, more cash flow, and better tax advantages than stocks. In the past forty years homes have appreciated annually at an average rate of 5.32%. Furthermore, real estate investors’ benefit from monthly cash flow, leverage, and the tax benefits of depreciation, expenses and 1031 exchanges.

Investing in real estate has been fairly stable over time in comparison to other investments. The worst yearly loss for the S&P 500 was -37% in 2008. In contrast, the worst loss in median home price was -9.5% from 2008-2009. Over the long run, real estate might appreciate at a lower rate than some stocks, however because real estate is less liquid it is exposed to less volatility than the stock market.

It is important for buyer to remember that real estate investing is a non-emotional event and always comes down to just math.

Cash flow

Acquiring real estate assets not only provides security and stability, but also yields monthly cash flow. The basic need for shelter along with the recent housing crash have caused an increasing number (32%) of Americans to rent and depend upon real estate investors to provide them with housing.

International Investing

Can investing internationally in places such as Dubai Real Estate, Argentina, Panama and Vietnam make sense? Americans have recently been deterred from investing internationally in places such as the UK or Euro zone but other countries may make sense – especially those with a lot of fertile land. All this talk of “end of the world” has spurred some to invest in farmable land with water and other natural resources. We have seen Asian, Canadian, and Euro buyers purchasing in the US utilizing geographic currency arbitrage.

Real estate agents must provide tools and services that empower buyers and sellers to design their ideal lifestyle.

Lifestyle design starts with investing wisely, saving money, increasing assets, managing a performing portfolio, utilizing leverage and achieving the cashflow that pays for the lifestyle one desires.

A real estate search engine that allows users to map view or list view search by the most relevant criteria (location, price, property type, beds, and baths) is a start, but wouldn’t it also be nice to know if the asset produces income? In other words if you had to move or transfer wouldn’t you want to know if the property can be rented for the payment and what the return would be?

Whether one investments in a home as their primary residence, or purchases a home as a rental, buyers need a long-term partner in helping them achieve their desired outcome. By educating, advising and providing asset ratings to customers by individual property we set ourselves apart from the competition.

You mean to tell me if I purchase a property I’ll get a detailed analysis of value, cap rate, cash-flow, cash on cash return, ROI and more? YES! Even if it is for my primary residence? YES!

Products that help users gain knowledge on real estate investing, stay current on market information and make educated investment decisions drive customers and their referrals. By providing state of the art technology along with a high level of service, we constantly build confidence and brand loyalty as a one stop shop for real estate investing.

Lyons Realty strives to deliver an outstanding customer experience to elicit referrals and branding.

Escrows can be opened one of two ways:

1. When a traditional sales contract is dually executed by both buyer and seller, or
2. When a bank approves a short sale.

The index rose 5.1% nationwide in March (but is still 11.4% below March 2010)

The western region of the index (which includes San Diego) rose 3.1% (but is still 4.1% below last year – mainly due to the tax credit).

The hardline negotiators at Lyons Realty suggest that it is a good idea to create your own tax credit by requesting a credit from the seller in your offer.

Bill Lyons, founder and broker of Lyons Realty in La Jolla, CA said “Affordable prices, job creation and low mortgage rates have created very favorable climate for San Diego home buyers. The Pending Homes Sales Index is another indicator reflecting opportunities for today’s buyers”

Existing detached home sales in March for San Diego county were up 43% (but only .4% change from last year – mainly due to a seasonal jump coming out of the holidays).

It is important to note that Coronado and La Jolla were down 28% and 21% respectively while areas like Downtown and Mission Hills were up 29% and  37%.

Lawrence Yun, NAR’s chief economist, said “…existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges”

All and all these stats are great news for San Diego home purchasers and we look forward to working with you toward the American dream!

Beautiful homes are all around us and sometimes when we are going throughout our day or driving by we miss opportunities.

That is why our broker, Bill Lyons, created “The Coronado Real Estate Run”.

The run is designed for out of town visitors who are considering purchasing a home on the island.

If you are staying at the Hotel del Coronado, Coronado Island Marriott Resort, Loews Coronado Bay, Glorietta Bay Inn, Coronado Beach Resort or even downtown for a convention the run will open your eyes to new possibilites.

Do you know where the Spanish Bight area of the island is? Have you seen all of homes along the bay and golf course? Do you know which home “The Wizard of Oz” was written in? Did you know there is a street named “Encino Row”? Do you know the most desired area to live among the locals?

Where else can you get the personal time of a native islander who is one of the best negotiators in the business? Our broker has closed well over $3 Billion in transactions!

“Some participants prefer to walk and some prefer to run as we tour the hidden enclaves and real estate gems of Coronado Island. It is a great way to see all the island has to offer while getting some exercise along the way. Most of our participants tend to be from Arizona, Nevada, or Canada and get the chance to see what it is really like to live in Coronado” said Lyons Realty’s broker Bill Lyons.

We look forward to meeting you on the run. We not only value your business we value your vitality!

To schedule a Coronado real estate walk or run tour please fill out the contact form below:

Step 1: Imagine you need or want to buy a new home for your family and have just performed a search at Google, Yahoo or Bing for “San Diego Real Estate.”

Step 2: Answer the questions below (A dual plead for high quality, high impact, relevant content! Simple enough?)

1. Have your loan officer or real estate agent contact their title rep to get a verbal title search done, not only can you find out if the deal is an undisclosed short sale you can also find out if there are any Lis Pendens, Bankruptcy, Foreclosure filings (notice of default or notice of sale), Cloud on Title, and/or litigation. Most experienced agents know if a complex has any pending litigation but you are always going to want to verify this. Why? Pending litigation can affect your financing, insurance and resale value. After you have an accepted offer your lender or escrow will order the full preliminary title report. There are however a two lenders out there that will provide financing on condos in litigation. (Contact us for more details)

2. Order the Home Owners Association (HOA) Docs. Most associations you can get through www.condocerts.com

3. See if the complex is FHA approved this can help with resale value. Search HUD’s site here: https://entp.hud.gov/idapp/html/condo1.cfm

4. Spend the extra $300~ to get an inspection done in addition to the appraisal (especially in older complexes or ones with construction defect problems)

5. As with any home purchase make sure you are buying it at the right price and that it is a good investment in addition to a good property to live in. If you were going to rent it out in the future would the rent cover your payment (including your HOA fee)? What would the cap-rate be? What would your monthly cashflow be? What would your ROI be? What are the tax benefits?

6. Upon closing make sure you get a interior insurance policy (what happens if your upstairs neighbor accidentally leaves their bathtub running?)

Purchasing real estate is all about dealing with professionals and performing the proper due diligence. If you are concerned about the noise of a certain complex or if you will be moving into a college dorm or not; search online or hang around and ask people that are currently living in the complex. The more educated and informed you are the more likely you are to make a better purchase.

La Jolla is an affluent beach community. La Jolla had the highest home prices in the nation in 2008 and 2009, the average price of a home in La Jolla was $1.84 million in 2008 and $2.12 million in 2009…and that’s why we love it!

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Suntrust, GMAC, US Bank, Union Bank and ING really have cornered the jumbo and super-jumbo markets, so much so, brokers and other banks can’t even compete.

Ask your mortgage banker or loan officer if they sell to Suntrust, GMAC and US Bank. Specifically ask if they are approved as a wholesale broker or a corespondent. You want to use a direct lender that is selling to Suntrust, GMAC, US Bank on a corespondent level not a broker. Broker’s don’t have control in this market and your transaction could end up blowing up last minute.

Obviously this holds true for any jumbo loan in other areas of San Diego such as La Jolla or Rancho Santa Fe, not just Coronado.

If you have superb credit (740+FICO) and a loan amount below $2million you are going to want to get an approval from a banker that is going to sell the loan to Suntrust. If you have so-so credit (650+FICO) you are going to want to get an approval from a banker that is going to sell the loan to US Bank. If you keep your loan below $3Million and are OK with a 5/1 or 7/1 ARM and can put 50% down you are going to want to get approved through ING.

If you have bad credit (650 or less) you are going to want to get an approval from Financial Matchup – they will lend up to $1million (sometimes more on an exception basis) on less than 500 FICO scores with 50% down.

I’m sure loan officers that work for brokers or other non-competitive banks are going to want to throw tomatos at me for revealing this insider information but I believe an educated buyer is an empowered buyer and empowered buyers is who Lyons Realty likes to represent.