Reno Home Blog

Bibo Coffee Company: Best Coffee in Reno

Where:                     680 Mt Rose St. Reno,NV (775-329-2114)

Downtown Location:   50 W Liberty St. Reno,NV (775-329-3322)

"Bibo's? Is that the one near Mogul Mouse (A funny sounding ski shop in Moana Lane)?  I curiously asked Gayla who I was about to have coffee with.  "Umm, how about Starbucks at Kietzke?" I retorted, " No, no you don't understand I want to show you this coffee place.  You'll like it. Trust me."

And with that assurance I half-heartedly complied to meet her at Bibo coffee house.

That happened a year ago.  I've never been to any other coffee house ever since. 

The first thing I noticed with Bibo's is the variety of people that comes there.   This was no accident I later learned from the owner "My wife and I wanted to create a place where people of shared or varied interests could come together outside a bar or a club.  We've got Doctors, blue collar guys, artists, students, real estate people, we have office meetings, we have families.  And that's really  what we strive to create--a gathering place."  Paul Martin said.

Paul Martin was a golf professional who lived at Tahoe with his wife Debbie for fifteen years. Then moved to Reno and just "fell in love with the town."

I asked him how he got started with Bibo's:

"We were just trying to figure out how we can just make Reno even better, even more of a place we wanted to be.  So we started kind of looking around figuring out things that matched my skills and something that we could feel like was a contribution to Reno.  And so we looked around and came up with a coffee house.  It was just a really good match of a place where people of shared and varied interests could come together outside of a bar or a club."

The place is also widely praised for it's urban-contemporary design yet not lacking in warmth.  Paul sought out architect Jack Hawkins to accomplish this. 

"It was really important for us to keep a sense of Reno. We wanted to keep the theme going with some original photos of Reno that my wife's grandfather took back in the 30's and 40's and all those things give us a sense of place, rather than you know just anywhere U.S.A."

On one of my lazy afternoons at Bibo's I met a lady who gladly explained to me why bibo's coffee tastes much better. "Other franchised coffee houses over-roast their beans to get the maximum aroma. Bibo's don't have to do that  simply because the beans are already top quality."

Paul later explained to me the process "We source out to really unique roasters with premium beans. What they do is one of them travels to India every year to buy our espresso and also our monsoon medley (*personal favorite). He goes directly to the growers buying their best beans but he's also giving them the best price. Then we deal with quality roasters who are going to roast those beans."

"And it's also about the small steps we do within the store.  We get coffee delivered once a week so it's always really fresh.  We don't grind before it's time.  The grinding only takes place when it's brewed, so it's always fresh and tasty. 

So it's kind of all those things- it's the small steps. 

And when the guys are making their lattes, we don't hold milk.  It's like if you were going to make a latte or a cappuccino the milk is steamed for that precise drink at that moment.  And the espresso is pulled and ground at that exact moment, it's not held over.  It might take us a bit longer but it's all those qualities assurance that kind of adds into it."

Now can anybody blame the author for making Bibo's my half-way home?

 

How I managed to survive a sour day

Superb Photo by: Quan Do

Two of my short sale deals crashed.  Very very interesting day. (I have to warn you: there is a happy ending to this)

The first one I've been working on since November of last year.  Was in contract in three separate times.  The second time hurt like  " 'H'  'eeeeh' double hockey sticks", as my 77 Yr. Old friend Dolores ( I call her 'Dolly' which she abhors) would aptly put it. 

The deal was closing in 10 days.  The bank, to my great surprise, was on their way to approving the whole deal.  Wohooo!

Until my buyers backed out a week before closing. I religiously took care of the deal for 4 months.

"Life is difficult", said M. Scot Peck.  " but once you realize it's difficult, it's no longer difficult.  I never quite understood fully the depths of that quote but I have a weird feeling that I'm starting to scratch the surface. 

The two people who work for me should be included in the Guinness Book Of World Records- for their dogged tenacity and determination. 

It won't be the complete truth if I just tell you the negative side of our business (this day- definitely high in the charts).  Because we have had a fairly good year.  We have had months where nothing seems to go wrong.  Marco, my effective mutant-extraordinaire assistant, raking in deal after deal, just by him.

But there are days like today.  Where it seems like nothing is going right.  Or is it?!

After the grueling-silent 9am-3pm hours of today.  We just started to turn the days events to something that put a smile on our faces.  One (I'm not going to say who) intelligently suggested that we just throw in the towel and start pursuing 'harmless' relationships with other single,lonely and not-too-young million dollar agents in the office. 

I guess times like these have it's up side.  It faintly reminds us just how feeble our careers could be (think: Bear Sterns)  and ultimately, life is about the people around us and the quality of our relationships with them. I am reminded of Warren Buffet, world's second richest man, when asked about his definition of happiness,  "being loved by the people you hope love you". 

And not surprisingly, I'm ready for another day.

Nevada Bond & Rural Development Loans: An Easy-To-Understand Guide

Guest Interview: Cory and I meet over lunch to talk about NV Bond and Rural Development Loans.  Click here to read the first part of the interview ( about FHA & VA loans).

(Note: this article is not meant to encompass all the nitty-gritty details about these programs. Our hope is that through Cory's insights we can all learn something new and hopefully help you in your decision-making. But I tried my best to include resources with the topics we discussed.  If something is not clear to you or would like to know more, you're more than welcome to call me directly (Joe: 775-338-7653) and I will do my best to help you or recommend someone who can.)

NV Bond Program

• Is a first time home buyer's  program

• In order for borrowers and clients to use the NV bond they must've taken the first time home buyer's class. (FHA and VA does not matter if you're a first time home buyer.)

• NV bond program must be a first time homebuyer. Well that's not exactly true. If you haven't owned a home in the last three years, you are eligible.  The test is you have to provide the past three years record of taxes, and they will check if you have deducted any mortgage interest on your taxes in those years.

• For the right people it is a good loan. It's not a good loan for a first time homebuyer who will have large increases with their pay. You can actually lose your subsidy and re-audit you.

• Another drawback is that it must always be owner-occupied. That's the downfall of NV Bond always has to be owner occupied. You cannot use it to develop a real estate portfolio at all.
  

Additional Resources:

• NV Bond Program Overview (http://nvhousing.state.nv.us/bond_program/mfindex.htm)

• Homeownership Assistance: Nevada (http://www.hud.gov/local/nv/homeownership/buyingprgms.cfm)

Advantages of NV Bond

• It 'piggy backs' off the FHA or VA. It helps with down payment and closing costs. If you got a $100,000 purchase price you've got the $97,000 for the FHA loan while the NV bond loan is going to pay for the difference. It'll be on the 2nd position amortized over 20 years and there will be a $7,500 lien in the second position that has helped pay for your down payment and closing costs.

• It does not piggy back off conventional loans only FHA or VA.

Rural Housing or Rural Development loans

"Is committed to helping improve the economy and quality of life in all of Rural America"

• To be eligible for rural housing is based on geographic location.

• The cool part about Rural development is that if you have $100,000 purchase price but the appraisal came in for 103,000 you can have a loan amount of $103,000 and roll the $3,000 to the closing costs. That's the niche that RD has.

• And the underwriting actually is not much different from a regular FHA loan. Very similar. Good program.

Additional Resources:

• Rural housing loans(http://www.govloans.gov/govloans_en.portal?_nfpb=true&_pageLabel=gbcc_page_browse_loans&_
  nfls=false&bid=401&mode=report&currentSubType=6)
  

• Rural Development news and updates (http://www.rurdev.usda.gov/)
  

CONTACT INFO:

Cory Henderson
Cell: 775-815-5500
Office: 775-828-9500
Email: cory.henderson@mannmortgage.com
Address: 495 Apple St. Suite 105 Reno,Nevada 89502

FHA & VA Loan Programs: What People Are Craving To Know

Guest Interview: Cory and I meet over lunch to talk about FHA and VA loans.

Visit Cory's Chase Nation Page

I met Cory at one of our weekly office meetings.

Cory is a 4'th generation Montanan who finished his bachelor's degree in finance and economics at the University of Montana. 

Shortly after his graduation, he got into the lending industry at the age of 22.  He's been in the business for 17 years. 

I asked him to give us his thoughts on FHA and VA loan programs.  It was time well spent for I gained new understanding on these very important loan programs.  Hope it gives value to you too!

(Note: this article is not meant to encompass all the nitty-gritty details about these programs. Our hope is that through Cory's insights we can all learn something new and hopefully help you in your decision-making. But I tried my best to include resources with the topics we discussed.  If something is not clear to you or would like to know more, you're more than welcome to call me directly (Joe: 775-338-7653) and I will do my best to help you or recommend someone who can.)

FHA Loans (Federal Housing Administration) 

• Allows 97% of purchase price to be refinanced.  So if you have a $100,000 loan, your max loan amount would be $97,000.

• FHA has an upfront mortgage insurance charge plus a monthly mortgage insurance charge. The upfront mortgage insurance is stacked on top of the loan amount. So even though the loan amount is 97,000, that would only be your base loan amount. Your total loan amount would be your base loan amount plus your upfront mortgage insurance premium. So in the last scenario Your total loan amount would probably be closer to 98,600. The extra $1,600 is your upfront mortgage insurance that's financed in.

• FHA allows a little bit more liberal debt-to-income ratio compared to Conventional loans.

• FHA allows for a little bit loser underwriting standards in regards to the credit. So it really is a program that's geared to people who has had issues in the past but have learned form their mistakes.

• FHA is a good loan for people who maybe hasn't saved up enough money for a huge down payment.

• FHA also has FHA Access which you can do 100% financing. However, the rate adjustment on that are stiff. For example if you're quoting 6.25% for a FHA loan, your FHA access would probably be at 7.5% for the extra 3 percent (in down payment).  That's why I don't usually recommend FHA access.

Additional Resources:

• Let FHA loans help you (http://www.hud.gov/buying/loans.cfm)

• FHA loans Wiki (http://en.wikipedia.org/wiki/FHA_loan)
  

VA Loans (Veteran's Affairs)

• VA allows for 100% financing

• VA has what's called a funding fee.

• The myth is that you can only use your VA loan once. That is not true. A veteran has the option to use their VA as many times as they want as long as the previous VA loan has been paid off.

• VA has an upfront funding fee similar to the upfront mortgage insurance that FHA has but VA funding is a little bit more. It's 3% for the first time that you use it. 

        It's 3.25-3.5% for subsequent uses and that's based on the loan amount. So if you have a 100,000 loan. VA funding fee will be $3,000. Again, its calculated very similar to FHA.  You have your base loan amount plus whatever your funding fee or your upfront mortgage insurance is to get your total loan amount. So with VA you'll start with a 103,000 loan with a 100,000 loan.

• VA is very competitively priced. If your veteran, through service, has been disabled, the funding fee can be waived.  In my mind, It's still a very strong program. Its probably right now the best program out there.

Additional Resources:

• Am I eligible for a VA loan (http://www.homeloans.va.gov/eligibility.htm)?

• Frequently asked questions about VA (http://www.homeloans.va.gov/faqelig.htm).
  

• VA loan Wiki (http://en.wikipedia.org/wiki/VA_loan)
  

Who qualifies for a VA loan?

• Anybody who has been honorably discharged from the Armed Services of the United States of America.

• And from that point it's just making sure the Veteran has what's called a DD214 which is the date of discharge papers. And you use that to get your certificate of availability. You can also get that online right on VA's website. If you can't get it over the web, you can request it via snail mail. Great program.

• VA allows for a little bit of Debt-to-Income ratio compared to a Conventional loan.

Some notes about FHA & VA loans

• Both FHA and VA looks at certain aspects of the property. By their mandate they are trying to avoid somebody purchasing a house and having to replace the roof or having to cost them financial hardship.

• Health and safety hazards are usually noted on the appraisal and usually have to be repaired before closing. A bad roof would probably get called and you've got problems with the heating units. All of those things would have to be addressed before you close A FHA or VA loan.

• The major difference bet FHA and VA right now is you can manually underwrite a VA loan with a low of 580 you can't do that anymore for FHA. If there below 580 you'll have to have an automated approval in order to close it. I do believe that that would probably come back in time.

CONTACT INFO:

Cory Henderson
Cell: 775-815-5500
Office: 775-828-9500
Email: cory.henderson@mannmortgage.com
Address: 495 Apple St. Suite 105 Reno,Nevada 89502

FHA Loans: A hot subject (guest post)

(This is a guest post by Aaron Dehart, mortgage planner at Morgan Financial. 
You can send him an email for additional questions regarding FHA: Aaron.DeHart@wjbradley.com)

FHA Pricing has been a hot subject as of late.

Although interest rates are still great when it comes to Government Loans, the volatility of the Market Place and the recovery of the Sub prime mess are still rearing its ugly head. As a result, every lender has gone to a risked base pricing system when it comes to Government loans.

Now this does not mean that FHA/ HUD have gone to this but it is the individual banks that are protecting their own interests. For example many banks are requiring a minimum Credit Score of 580 now for them to insure the FHA Loan; others are even higher with a 600 FICO score requirement.

Now this does not mean that someone can not still qualify for an FHA Loan because FHA uses what is called a total score card. Meaning they look at the big picture, this not only includes the credit score, but also takes into consideration time on current, credit history for the past two years, debt to income ratio, loan to value, amount of reserves, etc.

What does all this mean? Obviously the stronger the candidate, good credit, good job history, lower debt to income ratio, good reserves in the bank, will be rewarded with an excellent interest rate.

For example if you have a credit score of say 700, 3 months of reserves and good job history, then you are rewarded with an interest rate of between 6 and 6.25% depending on market conditions when you lock of course. If your score is below 600 and depending on if you get an automated approval, (Automated Underwriting) we will discuss what that is later. Then the banks are going to charge you the selling premium, very simple the higher a risk the more banks have to pay to sell your loan on the secondary market.

The money has to come from somewhere so the banks are going to charge that upfront in pricing to ensure they have a loan that can be sold. Also it is important to point out that if a couple is married, the spouse’s debts must be used in qualifying. The lower mid credit scores of the two borrowers is being used. Example Husband 680, wife is a 575, the 575 score would be used for pricing. It is possible to remove the lower fico if the individual borrower can qualify on their own, however, the debts of the spouse will still be used in qualifying.

So you can see that FHA can fluctuate from having a right at market rate to having a higher than market rate determined by the overall scoring factor that FHA has. FHA are still the best loans to get for someone who has below a 680 FICO score, limited reserves and little or no money down for the transaction, especially if the property is located in a declining market area. The pricing adjusters are far more extreme on Conventional loans if you do not fit into those categories.

Superb home in Reno-South Meadows (Double Diamond Pkwy): $279,000

Once in a while I would disobey my rule ('thou shall not explicitly advertise our listings in the blog').  I only do this when I know deep in my gut that a listing is 'the' leader of the pack.

I don't think this home will last a month.  It is the best priced home in the neighborhood and perhaps best condition too.  Pride of ownership overflows all through out the home. The owners did a marvelous job in keeping the home in tip-top shape.

(second bathroom)

Details:

• Home is subject to short sale

• Built: 2005

• Total Living Space: 2,068 Sq. Ft.

• Price per SQ. Ft : $134.91

• Bedrooms: 4

• Baths: 2 full baths

• Total parking capacity: 3

• Acreage: .16

• Stories: 1 story

• Plantation shutters on all windows

• High ceilings

• Gas fireplace

• Upgraded kitchen: Tile counter tops and stainless kitchen

• Double sink in both bathrooms

• Walk-in closet in Master's bedroom

                      Call Joe to get more information: 775-338-7653

For Buyers in Sparks: Best Performing Areas

What's been happening in the different market areas in Sparks?
What area in Sparks has been most affected by the market downturn?
What area is holding up best?

Like what I said in my last post(buyers in Reno), there is no one winner-take-all.  But this can help you determine which part of Sparks is holding up best.  Knowing this information is vital, for it will give you a glimpse of what the future has in store for you in your desired area. 

Guys, take your time, analyze the specific areas you want.  But don't succumb to analysis paralysis.  Listen to the story the market is telling you, digest it, then one way or another you have to decide what you want to do based on your objectives not anybody else's. 

If you need more data, some advice or something is not clear to you do not hesitate to call me (Joe:775-338-7653) or Ian  (775-338-7649) for a no-hassle-no-pressure phone meeting.

And here are the winners ladies and gentlemen:

1. Percent growth # of units : Spanish Springs South

Percent growth- # units

2. Percent growth- $ Volume:  Spanish Springs South

3. Percent Growth- Median price:  Spanish Springs- West

For Buyers: The Hottest Area Codes in Reno

I started my Monday with this question in mind: 

What is the leading area in Reno? And I need solid evidence to back it up. 

Answer:  It depends

Here are the winners.

For Median Sales Price:  Caughlin Ranch  (Reno-West Southwest, MLS area code 161)

(graph shown)

Click here for full-page view

For Percent Growth-$ Volume: Verdi (MLS area code 124)

(graph shown)

Click here for full-page view

For Percent Growth- Units: Verdi (MLS area code 124)

(graph shown)

Click here for full-page view

*note: It is important to know that Verdi is not a large pool (1-3 closings/month, 20-30 homes for sale on average)

Buyers, these areas could be a good starting point for your home searching.  I just checked some listings at or near Caughlin Ranch(area 161):

Prices range from $280,000 to $3,595,000

1. 200 Brooktrail Dr.1,498 Sq. Ft., $280,000

2.  1263 Creek Haven Cir. 1,588 Sq. Ft., $299,900

3. 4805 Turning Leaf,2,465 Sq. Ft., $499,000

                                                   ----------------------------------------

       Interested in learning more about the other areas in the Reno market?
     Call Joe for a No Hassle-No Pressure-Phone meeting 775-338-7653

                                         ---------------------------
                                                                

How I learned to see the Reno market through the eyes of Bear Grylls

Image by: Discovery.mae

These past three years in our market has not been unlike Bear Gryll's three-day ordeal at the African Savanna.

Bear Grylls is the 'host' of Man Vs. Wild. He is an ex-British Army Special Air Service who is lurched (usually from a helicopter) in the middle of nowhere to survive unforgiving temperatures with nothing more than a knife and if he's lucky, a flint.

Not unlike the story of our real estate market the past three years -the best times of my real estate career.  As JoAnne Correira beautifully painted it to me two years ago, "this market will separate the men from the boys".

But like in any hard times there will always be the Crème brûlée dessert after enduring Aunt Bernice's burnt ribs.  With some graphs and statistics straight from MLS (see below) and our group poised to have one of our best sales years ever. The market could be heading for a possible bottom in demand this year and prices not long after that.

Here are some of the evidences:

Homes under contract in Reno in the last six months (weekly)
(click here for full-page view)

Homes Under Contract and SOLD in Reno in the last six months(weekly)
(click here for full-page view)

Median price of homes in Reno in the last six months (weekly)
(click here for full-page view)

If I only let the burning life in me eager only to see the 'bright lights' without considering the other side would be disservice to you.

I owe it to you my dear reader to also show you the possible chink in the furniture:

1.  Seasonal increase.

Solution: This coming winter will be the ultimate judge as to whether it will stay above Jan 21,2008 possible demand bottom.

(click image for full-page view)

I leave with you the words of David Ogilvy:

"I notice increasing reluctance on the part of marketing executives to use judgement; they are coming to rely too much on research, and they use it as a drunkard uses a lamppost for support, rather than for illumination."

Use it for illumination dear friends.  And you'll go far.