Gordon Inman’s Blog

Gordon Inman was born and raised in the projects of San Pedro. He has watched the town grow from barely nothing to a lot of something. He hopes you can enjoy the city and growth as well.

I will be posting about attractions in the area you can do the rest of the summer or any day of the year. I hope you enjoy! Let me know if you visit any places.

• Visit one of the last of the bath houses  built in California that was the original Cabrillo Museaum. Recently renovated after it was Vacant for decades. The place has lots of beach activities and various events.

THE CABRILLO BEACH BATHHOUSE LOCATION:

3800 Stephen White Drive (off Pacific Ave) (310) 548-7554

• Fireboat #2, which is located in the award winning firestation #112. Commisioned in 1925, the classic fireboat is still a part of the fire departments fleet with a size of 99 feet long and a 19 foot beam. The 6 four-stage pumps would produce 10,200 gallons of water per minute. Now it is just displayed outside like a landmark.

THE FIREBOAT’S LOCATION-

Fire station #112, Berth 86 (at the end of 5th St), San Pedro

Spend a night sitting on Southern California’s sandy shore waiting for the grunion run that is a unique experience. From March through August, the small grunion wash themselves up on the beach 3-4 nights after the new and full moon.
The curious fact is that 1-3 hours after the high tide, female grunion and their male suitors wash up on the shore en masse while the females wriggle tail first into the sand laying some 1-3,000 eggs while the males encircle them depositing milt along her body fertilizing the eggs below the sand surface. In this protected pod the eggs develop for some 10 days when the next high tide agitates and hatches the baby grunion out. They will mature in one year or at 5” and will complete the cycle. Grunion live for 3-4 years and females may spawn 4-8 times per season.

Grunion may be eaten by many kinds of fish including halibut and croakers; and probing shorebirds, sand worms, beetles and beach hoppers eat their eggs. Humans may only capture grunion with their bare hands (except during April and May) and grunion hunters over 16 must have a fishing license.

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 Searching for a mortgage loan will become one of your most important adventures. Those advantageous advertised interest rates, discount points and so-called easier approvals are all the rage for the online mortgage; but are they trustworthy and will you get the same services as with a traditional bank? Well any money spent on real estate deserves your full attention to details. Before submitting any application online you should always research the entity to ensure there aren’t multiple negative remarks. Negative remarks are a telltale sign of buyer beware and you should perform further investigation before dealing with the company.  There will always be unhappy customers who have an axe to grind but if you see a pattern of unhappy customers you should cut your losses and move to their competitor. Online mortgages bring in billions of revenue every year but some mortgage brokers are being investigated for false advertising. Many online mortgage brokers will offer you a low interest rate with lots of unadvertised fees attached; some will pad the fees to compensate for the low rates they’ve offered you. Just keep in mind that everything is negotiable.  You can always ask for comp’s, especially if you have a high credit score and a healthy down payment. The biggest issue with online mortgage brokers is the bait and switch game. Many times you’ll see competitive interest rates advertised online with low discount points and relatively no out-of-pocket costs that make the deal unbelievable to pass up; by the time your loan is submitted to underwriters the interest rate is close to sub-prime and you probably won’t find out until you attend closing. What does this mean in the end? You either accept the inflated offer at closing or walk away and probably lose your deposit. But all is not lost if you still choose to roll the dice and apply online for your mortgage loan.  Overcoming the disadvantages mentioned is simple; ·        Always rely on your gut feeling first!  If you are hesitant about completing an online application listen to that little voice of reason and click to a competitor.·        If you do choose to apply for an online mortgage loan read the fine print and any contingencies tied to the approval of the loan.  ·        Print off a copy for your records! Do not rely on receiving an electronic copy – it could get lost in cyberspace.·        Apply with a mortgage broker; your application will be submitted to several lenders and will only require pulling your credit once for all of those representatives.  If you apply with each lender separately, each will pull your credit which will undoubtedly lower your credit score.·        Request documentation and ask questions until you feel comfortable.  Remember, there are many more lenders competing for your business. You never have to stick with one.Understanding your role is crucial. You are the consumer and although you need their services, you should never become complacent and accept unethical standards. If you feel you must accept below standard terms because of credit or financial issues, perhaps you should wait until you’re in a better position.

We’ve all caught a glimpse of the advertisements proclaiming a $1 HUD home but is it more hype that truth? Not really; there are plenty of one dollar HUD homes for sale but there are also criteria for those that are eligible to purchase a one dollar home.  The $1 HUD home deal never starts off that enticing. These homes have either been foreclosed or been reclaimed because of tax liens or abandoned by the owner and left for the city to take over.  More than likely, once the government takes over all the homes have some value left and will be priced accordingly.  It’s when a home remains on a list and has no interest that the government starts low balling its price.  After a very long period, the home is determined to be devoid of value and is placed on a $1 listing.  HUD does not sell these $1 homes for normal residential purposes, unless a non-profit entity steps in. The $1 homes are put aside for non-profits and churches looking to transform a worn down piece of property into a rehabbed building worthy of serving the public in some capacity. Are the advertisements you see true or false? Neither – they are misleading and only apply to a specific group of candidates but of course, the ads are meant to entice you into hoping for that $1 dream.  Bottom Line – Is it possible to purchase a $1 home? Sure, anything is possible. Anyone can apply to become a non-profit business then submit an application to the IRS for your 501 C status so you’re tax exempt. This takes just a few short months to accomplish then you’re eligible to bid on these $1 HUD homes.  Having a vision and wanting to help your fellow mankind will help your goal since the government awards these homes based on a need and a plan.  All the advertisements make it seem as though the process is simple and guaranteed but how often do you find something guaranteed?  The truth is you can obtain a home from HUD for $1 however not as an owner occupied residence but more like a business opportunity that serves a community purpose. Are you willing to change your perspective a bit? Ingenuity breeds opportunity and it will only take a bit of thought to create a plan that serves both you and the government. You could be well on your way to landing a $1 HUD home.

Looking to purchase a new home at half the price? That sounds like the perfect deal, doesn’t it? The Good Neighbor Next Door is a HUD sponsored program that offers certain civil service workers the opportunity to purchase a home at half the market price. There are eligibility rules, guidelines and a few clauses that are stipulated but the deal is certainly a certified government program that’s offered nationwide. A few years ago HUD offered a program to police officers and teachers that enabled them to move into neighborhoods they worked in and they would then qualify for a 50 percent deduction on the purchase of their home.  HUD expanded the program to include Firefighters, Emergency Medical Technicians (EMT), Law Enforcement Officers and K-12 grade Teachers.  Most of the homes available for the 50 percent deduction are located in revitalized areas. The first thing that comes to mind is crime infested neighborhoods looking to infuse professionals to drive the market up but that’s not true.  The Good Neighbor Next Door program strives to revitalize communities and introduce new life and values.  The homes are not torn down, burned out, all needing handyman work to become livable; while some may need a few items replaced, repainted and refreshed, the homes are certainly re-conditioned to sell and well worth the incentive of 50 percent off to live there. Each state has a list detailing homes available for the Good Neighbor Next Door Program and realtors can help complete the required forms. Eligibility Rules and Guidelines 

• All professionals who meet the criteria for this program must agree to purchase the home as their primary residence and live there for a minimum of 3 years

• The buyer must apply for two mortgages; the first mortgage is the only one the homebuyer will pay back, as long as they remain in the home for 3 years.  The second mortgage is really a “silent” mortgage that reflects the 50 percent discount and will be rescinded once the 3 years are up.

 Each year HUD will send out a qualifying form that the home owner must complete and return.  The form asks you to certify that you are still living in the home as your primary residence to ensure you still qualify for the discounted market rate of the home.  Upon receiving the letter, HUD updates their system and after the 3^rd year the second mortgage is filed paid and recorded at your local county clerk’s office. After 3 years of living in the home, the homeowner is free to sell the home without any stipulations or clauses, meaning you may have purchased it at a discount but now you may sell it for its full value.  So now you can see why it may be advantageous to many civil service workers to contact a realtor knowledgeable about the Good Neighbor Next Door Program.

1.     Q: Help! What can I do to rent out my home quickly? A: When trying to rent out your home the best thing to do is first, allow a real estate agency to handle your showings. Why? Because you’ll know those prospective clients that come to see your home are really interested versus individuals flipping through the average newspaper ads that are “just looking around” to get a feel of what’s available.  Next, remember less is more; try and move out as much furniture as possible; steam clean or replace the carpet, if any; and a fresh coat of white or cool platinum paint will brighten all the rooms. Nothing rents quicker than an empty place that looks roomy and spotless. 2.     Q: How Can I Negotiate My Closing Costs? A: Review your pre-settlement sheet that will contain all of your good faith estimates; there is always room for negotiation. Discount points can be negotiated, Pre-paid items may be reviewed for discrepancies like how many months in advance are you paying for real estate taxes, HOA fees, etc.  Try to get your settlement date as close to the end of the month as possible.  Each day you actually are living in the home you’re paying an agreed upon prorated price until your mortgage payment begins. Move in your new home Aug. 15^th and you’ll pay 16 days, prorated for living in the home from the 15^th until the 31^st.  3.     Q: Is there any strategy to delay the closing on my home? I’m suppose to close on the 5^th of the month but I would like to save money and close towards the end of the month. A: First, take a look at your contract and see if there is any statement about the settlement date. If the seller has stated any dates or clauses about when you go to settlement and you’ve signed that contract then you have no recourse, unless you can find something wrong. Is everything in the home complete? Exterior and Interior? You can also have an inspector with you during the walk-thru to see if there are any issues with the home that might delay your settlement date.  Take your contract with you and note any issues you find that the seller is responsible for; Are styles, types and dimensions correct? Landscaping in order? If the seller has forgotten anything you must let them know and hope it is enough to delay closing, otherwise you’re obligated by that contract to proceed. Everyone wants to save money when purchasing a home but the time to think about this is during the initial contract phrase, not during those crucial days before your settlement. Have more questions about real estate? Feel free to call us for all of your real estate questions and needs.

The government recently unveiled new incentives to use the $8,000 tax credit for new home buyers in hopes of jump-starting our housing dilemma.   The worst recession in over 80 years has the government brainstorming ways to overhaul the housing market with fresh incentives to entice buyers to move swiftly. The initial $8,000 tax credit was a great motivation to buy a new home complimented by record low interest rates that made home buying a win-win situation. However, when first introduced there were some limitations on how and when to use the tax credit but things are changing. The $8,000 tax credit was slow moving at first because of guidelines that allowed you to receive the $8,000 later instead of upfront when most people need it.  In place of waiting for Uncle Sam to deliver a fat check for $8,000, now this money can really help when it’s needed; during the actual purchase of the home.  1.     Apply for an FHA loan and use your tax credit for an additional down payment. While you’ll still need to come up with the initial down payment of 3.5 percent, you can now use any part of the $8,000 to apply towards equity in your new home. A bigger down payment could mean a lower interest rate.2.     One of the biggest challenges to overcome when purchasing a home is paying for closing costs; many times you’ll find that sellers only provide a percentage of the closing costs or nothing at all. New guidelines will allow you to apply the tax credit towards your closing costs.3.     An advantageous route to take is paying down your interest rate to lower your mortgage. New home buyers usually will place all of their disposable funds into the down payment, not knowing there are other creative methods to lowering your mortgage payment. “Buying Down Points” allows you to pay the lender a percentage to get a lower interest rate.  The new guidelines will allow you to buy down your points, which will save you thousands in interest payments over the years and hundreds of dollars in your monthly mortgage payment. There are some stipulations that the government has included such as income and financing guidelines.  Single home buyers must make less than $75,000 and couples $150,000 and you must pledge to live in the home for a minimum of 3 years. The problem of coming up with the initial down payment for a home still exist; you can only use this tax credit as an additional down payment after you’ve come up with the first 3.5 percent. The government acknowledges this problem and many states are mulling over creative loan techniques to help first time borrowers get those initial funds. And remember, the $8,000 tax credit ends in November! So stay tuned to see if more incentives are on the horizon.

All across the U.S. everyone from foreclosed homeowners to new college graduates and still the headstrong teenager looking to leave the womb are seeking a place to call home.  You’d think this is a great prosperous time for landlords but competition is fierce and landlords everywhere are finding ways to tempt new tenants and retain the old ones. Which to choose; apartments, condo’s, cottages or a home with a yard?  It’s difficult to compete today when everything is being offered and bargains have become plentiful!  Early in our housing crisis the demand for rentals took effect leading the way to renegotiate leases.  Landlords took notice and began lowering rental prices and sweetening the deals with more amenities and less fees. It certainly makes sense in the long run – what real estate investor wants empty rental units when you could bring in less of a profit but still not become completely shut out of the market? Landlords have become creative to avoid any vacancies including gym and golf memberships, a month or two of free rent, and layoff-lease incentives including free rent for a specified time period if you lose your job with a clause to break the lease if you’re unable to find new employment. While this all sounds like great marketing hype, some communities don’t favor this over-the-top desperation.  Many neighborhoods have grown from a niche or social status like law enforcement neighborhoods or government employed and attorney employed communities. The new marketing strategies adopted by many landlords don’t sit too well with the dynamics of niche and like-minded communities. While these climates may be sensitive to the obstacles and hardships of American families, many existing tenants are not favoring the new deals when they are not benefiting from them. So how do you negotiate an advantageous lease at an affordable price? A little research can go a long way in your favor. Here are few items to gather before presenting your pitch to the property manager; ·         What’s the market rate in that community? Find out what other comparable units are renting for.·         Try to learn how many empty units are available?  If the landlord is dealing with many vacancies it will become more encouraging to deal a discounted price.·         Are nearby rental units offering more amenities and concessions? You might be in a better position if you inform the landlord what their competition is doing down the street. Keep in mind, it’s a renter’s market now but all things rebalance themselves; get the best deals now and all the concessions you can added to your lease.  If you’re trying to get a longer lease and you’ve paid on time for the last year, bring this to the landlord’s attention. They would rather accommodate you than have another vacancy.

Home Owners Association, better known as the “HOA” have become “Big Brother” of many communities. These associations were formed to ensure neighborhoods remained esthetically pleasing to owners and visitors and a more uniform look and feel remained balanced.  However, as the years have passed home owners associations have changed the rules, bylaws and guidelines for living comfortably in your castle. When we make a purchase as important as a home we’d like to think we could do just about anything but developers err on the side of uniformity and like-minded individuals who’d rather ensure their homes bring increasing value.  And when you get right down to the reasoning of an HOA, you must ask yourself; is it really all that bad to keep your community looking good? While taking a pragmatic view of the Home Owners Association the good effects really outweigh the bad; your bylaws explain what you can and cannot do in your community. This is essentially an agreement between you and the community that you signed off on when you moved in and it’s the HOA’s responsibility to ensure you live up to your agreement.  What many people do not realize is that you have the right to call the HOA before you buy a home.  You can ask questions to make sure you are willing to live by all the regulations set forth for that community. No one really goes through the trouble of inquiring what the guidelines are before purchasing a home and that is one of the biggest problems.   The HOA determines  

• What type of fence you can install and specifically where on your property you can install it;
• What style and color deck you can build and the dimensions of the deck;
• What day and time you are able to place your garbage bin outside on garbage day and how long it can remain out before you are fined;
• Whether basketball courts, swimming pools, bar-b-cue grills or the color, type and style of your front door are within the guidelines of that community

 In simple terms – you must ask your HOA for permission to change, install or erect anything on your property. Why? Suppose you’re trying to sell your home and your neighbor wants to paint their front door a designer’s psychedelic color? How many people will purchase your home knowing they will have to live next to Picasso, never knowing what color’s he’ll use next?  This is why the HOA ensures uniformity and you never have to worry about crazy colors or embarrassing statues suddenly appearing on someone’s front lawn. But not everyone enjoys living under the rule of a Home Owner’s Association. There will always be those who love to rule with an iron fist; and then you have some people who are not ethically and morally capable of handling an HOA position.  The developer first places HOA board members there and when the community is complete the new board is then voted in by a quorum of homeowners. Each position has a certain term limit and each position comes with a clause that many feel is unfair.   Board members are insured, payable with community funds, against any lawsuits; meaning you cannot sue them based on their decisions whether good or bad.  A board position comes with a lot of power and many homeowners do not enjoy having rules enforced especially when it’s easy for malicious intent.  Cars towed, fines combined, requests denied and funds misused; any number of issues pop up when board members and homeowners views are conflicting and then combative.  Oh yes! Many issues have turned into bloody noses and black eyes. So how do you resolve issues with the HOA?  Just about all bylaws explain how to remove the board of directors from the HOA.  Or you could take the easy route before you move into a new community and call your HOA management company to ask questions. Be sure to note the most important aspects of your happiness in your new home such as should you want to change the color of your front door or entire house, what colors have been approved? Asking plenty of questions now can resolve lots of headaches down the road.