David Olson's Fall Newsletter

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

Fall is Officially Here!The cool breeze blowing, the crunching

sound of leaves under your feet, the

vibrant fall colors of the maple trees

going to sleep for the winter, picking

of the apples and pumpkins, going

outside to exercise and not have the

gnats and mosquitos attack you, the NFL

Football season starting. These are

reasons why I love the season of Fall.

NEWSLETTER DAVID OLSON’S REAL ESTATE FALL 2011

WHAT’S GOING ON IN YOUR REAL ESTATE MARKET TODAY?

I get asked all the time, "How's the market?", and my response is, "Well, it depends.  Are you looking to buy, sell, rent, or invest?"

Quite frankly, it is an awesome market if you are a Buyer - interest rates are truly at an all-time low, and home prices are low as well.

And it can be an awesome market if you are a Seller - the good homes get scooped up fast and for top dollar.  

And it is an awesome market if you are an investor - and are looking to either fix up and flip a property or hold it and place a renter in the home. 

This past week I’ve helped clients sell their homes, and I have helped clients purchase new homes!  I’ve had my schedule "jam packed" with showings, inspections, and presentations.   My phone has been ringing nonstop, and my emails are flooded. 

So, how's the market? The market is fabulous!  Don't miss the

opportunity that is being presenting to us all! If you would like to receive relevant weekly Real Estate information or see the latest sold properties in your area, give me a call today!

--David Olson

Real Estate Analysis Is Local and

Always Should Be.

A home is a place to feel safe and secure, to raise your family, share with your friends, and an investment.  It's an investment in your marriage, your family and your future.  You owe it to yourself to check out the real numbers in your market because every market is different.

Don’t forget about Daylight Savings timeon Nov. 6th

Check out our family update on Page 5

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

5 Insider Secrets for Coming Up With Cash for Your Down Payment

Most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we’re talking about here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000! 

That might seem like an insurmountable amount of coin to come up with, but it’s actually more doable than you might think. Some buyers will simply save up their own cash, even if it takes many, many moons. The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:

1. The FHA Bridal Registry. Yes – you read that right! The FHA Bridal Registry Program enables wanna-be home buyers to apply their families’ wedding gifts toward their down payments. And although it’s named a “bridal registry” program, you don’t have to be a prenuptial couple to use it. You could also use this program to collect gifts for graduation, the arrival of a baby, or some other major life event in which people want to give you gifts.

The FHA Bridal Registry works like a traditional registry, but is more flexible. The registrants visit their choice of FHA mortgage lenders and set up what essentially is a custodial savings account for the sole purpose of funding their down payment. The couple’s (or individual’s) family and friends can either deposit funds directly into the account or give the cash or check to the couple or individual, who then deposits it into the account. The account’s flexibility also goes beyond that of traditional down payment gift rules that are applicable to FHA loans (detailed below in insider secret #2).

With the FHA Bridal Registry Program, the only gift documentation required is “lender and borrower certification of the funds.”

2.  Family gifts. Most lenders will allow home buyers to apply gift money from family members toward their down payment – within guidelines, that is. First, the lender will require a letter from the giver verifying that it in fact is a gift and not a loan. (They generally frown upon it being a loan because it would add to the buyer’s debt and change their debt-to-income ratio.) And second, the person giving you the money must be a relative. The reasoning here is that a friend will most likely expect you to repay the money, whereas a relative won’t.

FHA loans will allow the gift to make up any portion or all of the buyer’s down payment; many conventional (non-FHA) loan programs will restrict the proportion of a buyer’s down payment that can come from gift money.  The lender may also have specific

ways they want to see the money go into and out of your accounts. Before you accept a gift toward your down payment, be sure to check with your mortgage broker or loan rep to be sure that you’re dotting all the right i’s and crossing all the right t’s.

3.  Your Employer. Some companies offer assistance programs to employees. Most are government, university, large company and financial industry employers. One example is safety workers: in some areas, safety workers like firefighters and police can have access to down payment grants from their employers if they buy properties in the city where they are on-call as first responders. Also, many large colleges and universities, very large companies, and banks and lending institutions offer down payment help and have below-market-rate mortgages set up for faculty members and staffers.  Check with your Human Resources department to see if any such program is available to you.

4. City/County/State Programs. Some states, counties and cities still offer programs that lend or give home buyers some assistance for down payments. These programs vary widely in scope – for instance, many target buyers with low and moderate incomes, while some seek to help the buyers of foreclosed or fixer-upper type homes. Some don’t have to repaid – meaning they are given as grants and are forgiven entirely if the buyer lives in the property for 30 years, but must be repaid if the buyer sells or rents the home out before the 30 years elapses. The programs pretty much all have some sort of homeowner education component that requires applicants to take personal finance and homeownership preparedness classes before they can receive funds. To learn more, visit your city, county and state websites to learn about programs that might be able to help you.

5.  Your Retirement Funds. Many financial advisors would advise against this, but if you have a 401K or Roth IRA account and some years to go before retirement, you might be able to tap into it or even borrow against your own funds for your down payment.

Currently, you can take up to $10,000 out of your Traditional IRA with no penalty to put toward the purchase of your first home, but you will be taxed.  You can take as much as you want out of your Roth IRA contributions with no penalty or taxes, though, and as much as $10,000 from your earnings penalty-free for your down payment.  The rules get a little tricky here, so definitely check in with your tax and financial advisors.

And while you can’t similarly draw from your 401K, many retirement and pension plans will allow you to borrow the money against your funds, then repay it to yourself – at interest. So the choice there comes down to paying your lender back with interest or paying yourself with interest. That choice should be you! But first, get some advice from your CPA or financial planner, as this option might not make financial sense for your particular situation.

FOR SALE

Rates are at a 61 year low!

112124 Haering Lane, Chaska$220k 4Bd,3Bath, 2,506sqft

Rambler: MLS# 4042627

9136 Decatur Ave Bloomington$399k 5Bed, 4Bath, 3,918sqft

Two Story: MLS# 4042627

5021 Sparrow Road Minnetonka$375k 4Bed, 3Bath, 3,048Sqft

Two Story: MLS#4082103

973 Payne Ave, St. Paul $89k, Store Front, 4,150 sqft

Mixed Use/Triplex:

Want More Information? As your trusted, professional real estate partner, I will help you find the best home in your area within your price range. Contact me with confidence! I guarantee your privacy will be respected.

‘Homes You’ll Love’

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

You Must Be This Tall to RideDo you remember going to the State Fair or

Six Flags as a child? There was a terrific ride your older siblings were going on but there, at the entrance gate, was a sign that read "You must be this tall to ride."

After standing in line and thinking you had just about made it, you found out that you weren't tall enough. Not only was it disappointing, it was slightly embarrassing. You never want to go through that again.

It's remarkably similar when buying a home. You can go through the entire property search process to find the right home and negotiate the contract only to find out that you don't measure up "financially." It's something that no one wants to go through if they have a choice.

Regardless of what you think you know, if you're buying a home, you need to physically visit with a trusted mortgage professional before you get serious. You'll find out your credit score which will directly affect the mortgage rate you'll pay. You'll discover possible blemishes on your credit that may be able to be corrected. You'll even get a pre-approval letter that you can submit with an offer which could dramatically affect your negotiations.

Remember how some rides didn't turn out to be as good as you thought they were going to be? You certainly don't want that disappointment with a lender involving one of the biggest decisions of your life. Contact me for a list of trusted mortgage professionals.

HOME ENERGY AUDIT

With the exception of a mortgage payment, the largest homeowner expense is utilities; and energy is the major component. There are lots of contributing factors such as air leaks, insulation, heating and cooling equipment, water heaters and lighting.

It’s estimated that 75% of the electricity to power home electronics is consumed when the products are turned off. Computers, monitors, TVs, cable and satellite boxes, DVRs and power adaptors are spinning your electric meter even when they're not being used.

Unplugging devices can actually make a difference in the size of your electric bill. Plugging several of these offenders into a power strip with a single on/off switch may make the task easier. Most computers have options to put them into sleep mode or even turn off when not in use.

Take 3 1/2 minutes and watch Energy 101. Consider hiring a professional home energy auditor or do-it-yourself. The Department of Energy has a checklist with some valuable suggestions.

You Must Be This Tall to Ride.

Presented By: Joe Metzler MLO, 651-552-3681 www.joemetzler.com& Brian Parkinson 612.282.5863 from RMG www.brianparkinson.com

Presented By:

SAVE THOUSANDS OF

DOLLARS A YEAR IN UTILITIES!

‘As a Residential Finance Consultant, David Olson has the training and experience to provide solutions to make homes more marketable and help structure favorable transactions.’

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

HAWAII TRIP

Aloha from the Big Island Over Labor Day we went to Hawaii with Erin’s family. We celebrated our four year anniversary and were able to spend some quality time with family. Some of the activities we did included hiking Diamond Head Crater, touring the Dole Plantation, snorkeling in Hanauma Bay, going Catamaran Sailing, visiting Pearl Harbor and swimming at Wakiki Beach. We had a great time!

John & Andrea Nelson’s new home in

Shakopee MN

Ever Thought About Being A LandLord?Meet John & Andrea Nelson, clients of

mine who recently saved for a downpayment to buy a new home for their growing family. They knew because of low interest rates and the large inventory of homes on the market that this was one of the best times to purchase a home in over 50 years. All of this was very exciting for them except for one issue. They owned a townhome that had significantly lost value. Instead of taking an incredibly large loss in order to sell their property in this market, they decided that their best option was to rent out their townhouse because it allowed them to protect their equity, generate more monthly income, and get through this down market before trying to sell.

John and Andrea had never been landlords or had any experiences trying to rent a property before. Andrea says ‘We were always open to the idea of being landlords when we were older, but never envisioned it happening at this point in our lives. We didn't know where to start, but David provided excellent resources for us to review.’ Besides being new to the process, John & Andrea didn’t have the time or resources to do extensive research to understand all of the legal contracts, the rules & expectations of being landlords in MN, and interview & negotiate with possible renters. ‘David was extremely helpful in helping us secure renters. He designed advertisements of our home and posted them on hundreds of rental websites. When potential renters starting responding, he fielded all those calls and screened prospects according to our preferred renter qualifications. Once they met all

the requirements, then we moved forward in the process. We liked that he was thorough and because of this, we found great renters.’ Andrea and John ended up saving hundreds of hours & thousands of dollars because I was able to help them get a renter for FREE. John and Andrea had a signed lease & two months of rent before they closed on their new home! Their experience in working with me was ‘Very positive.’

I’m glad I was able to help John & Andrea rent their property but even more importantly, it was great to help them get a terrific deal on their new house. On May 25th John & Andrea were able to move into their new home with their two kids, Lucy & Sawyer.

Are you looking to buy a new place but uncertain what your best options are with your current home? Do you have questions about how to rent your property but don’t know where to start or who to trust? Would you like to avoid the headaches & wasted time struggling to figure this out on your own?

I would love to sit down and talk one on one and help you rent your property for FREE. In this market I want to make sure you and your family can reach your goals. Give me a call!

The Nelson’s Townhome

Meet the Nelsons

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

This past summer has really been an adventure for us. With Spring being so busy we were intentional about doing more activities together as a family and enjoyed a lot of traveling and relaxing during our downtime.

It has been such a joy watching Kensie explore and learn so much now that she can walk, or should I say run! She’s learned to climb EVERYTHING! Recently she surprised us by climbing out of her crib, so she quickly graduated to her own ‘big girl bed.’ She has amazed us at how fast she’s learning her ABC’s, colors, shapes and many new words. She’s had fun playing with cousins and going to both sets of Grandparents. So much has changed for us now that she is in our lives. We are very grateful and thank God for the joy that she brings!

On September 2nd Erin and I celebrated our four-year anniversary in Hawaii. We had a fun time getting away to relax and seeing a lot of unique sites. We absolutely loved the weather there and will definitely go back someday! Erin continues to be a wonderful wife and mother. I consider myself one of the luckiest guys in the world to have her be a part of my life. Besides taking care of us, Erin has been enjoying her job at Malt-O-Meal as a ‘Product Marketing Manager.’ She also started her last two

semesters of Grad school at St. Thomas this Fall and will graduate with her MBA in June 2012.

With my time off from Real Estate I have also enjoyed going on runs with our dog Chloe, reading books on my iPad, going to the cabin with family, volunteering at my church, and occasionally writing and performing music with a Christian band from the East Coast. I’m also planning to do some triathlons this next summer and have slowly started preparing for the up and coming season.

Please keep us informed on what’s going on in your lives. We appreciate your friendship and genuinely want to stay connected.

This last year I was fortunate enough to sell 63 properties in the Twin Cities thanks to your support and referrals. You’re the reason my business keeps growing! God Bless.

-David, Erin, Kensie...& Chloe

The summer was FULL of activities! We had so much fun taking Kensie to see the Minnesota Twins, eating cookies at the State Fair, Swimming at the Cabin in Crosslake and going to the Apple Ochard.

FAMILY FUN

We Celebrated our 4 Year

Anniversary!

Minnesota Twins Game

State Fair

Apple Orchard

4th of July at the Cabin

Chloe is caught red

handed getting into the trash... again!

Another Exciting Summer with the Olsons!

David Olson RFC, CRS, Broker 651.295.2712www.DavidOlsonRealEstate.com

Appraisals: Orion Appraisals, Inc.Pat Sullivan [email protected]

Attorney:Thomsen Nybeck Law Firm:Brad Boyd 952.835.7000Eilertson Law Firm:Darrin Eilertson 612.827.0032

Carpentry/Remodeling:Como Lake Carpentry: Terry Ownens 651.890.6007Home Transformations: Shane Hanson 612.387.4057

Career Placement:Career Professionals Inc.Andrea Nelson 952.835.9922

Cleaning:Nina’a Cleaning CoNina Grin 952.212.2958

Electrical: Residential & CommercialOlson & Son’s ElectricWarren Olson 763.295.2690

Financial Planning:Meadows Financial GroupSean Meadows 612.924.6505

Flooring: Tile-Hardwood-CarpetFloor Center 952.946.1313http://www.floor-center.com

Glass: Frameless Showers & MirrorsGlass & Mirror Outlet, Inc.Doug Pedersen 952-933-3223www.glassandmirroroutlet.com

Handyman:Residential Handyman Barry Allurd 952.393.9325

Home Inspectors:Look Out Home Inspections: Keith Hedrick 952.210.0469

HVAC/AirConditioning:Angell Aire (Heating & Cooling Systems)www.angellaire.com/952.746.5200

Ice Dam Removal:Nathan Johnson 612.272.7995

Home Insurance:American Family Insurance Kim Bennett 651.482.1598www.kimbennettagency.com

Landscaping:Hardscape & Stonework Fletcher Lewis 612.414.5500

Painting:JBMO PaintingJohn Olson 763.568.3527

Photography:Feather Blue Studios-Modern Photography Shannon Tacheny 651.489.8281 www.featherbluestudios.com

Plumbing:Rigid PlumbingNate Johnson 612.272.7995

Printing/Mailing:PostNet 952.448.9878www.mn109.postnet.com

Marketing:The Marketing MaidErin 612.708.3312

Mechanic:Zaback Auto RepairCory Zaback 952.220.3461

Mortgage:Mortgages Unlimited:Joe Metzler MLO 651.552.3681www.JoeMetzler.com 

Mortgage Refinance Specialist:RMG, A division of Alerus Financial Brian Parkinson 612.282.5863www.brianparkinson.com

Mold Removal & Testing:GNL Enterprises LLC Greg Lindgren 763.228.4141 www.moldremovalmn.com 

Movers:AAA Movers Becky Hazuk 763.515.5462www.aaamoversinc.com

Radon Testing & Remediation:Air Quality Control –Radon Reduction Systems(952) 935-2118  (800) NO-RADON www.Minnesota-Radon.com$100 DISCOUNT ON RADON MITIGATION – PROMO CODE: DOR1

Residential Rental Management:EZ Management Inc. David 651.295.2712

Roofing/Siding:KoKesh Restoration LLCAnna KoKesh 952.292.2839

Snow Removal:Nathan Johnson612.272.7995

Sprinkler Systems:Grin Irrigation Co.Gennadiy Grin 952.212.0745

Staging/Interior Design:Alison Webb 612.708.3455

Taxes CPA:Dane Tax Solutions LLCDennis Dane 763.244.1152www.danetax.com

Title Company:TitleSmart, Inc.Nicole Paulson 651-206-0660

DAVID’S REFERRAL NETWORKHere are some of the most trusted professionals that I highly recommend:

Ready to Sell Your Home?Need expert advice? Not all realtors are created equal in the industry. To sell a lot of homes in this market it takes years of specialized skills and qualifications that are proven. David Olson is well known and

respected as one of the top selling Realtors in the Twin Cities. He comes from a family who has been in the business for over 52 years and has one of the largest network bases in the industry. David uses an aggressive 30 point marketing plan and takes advantage of over 250 websites to promote his listings. David

has the experience that makes him stand out above the competition. This newsletter is filled with ways that you can contact him for one-on-one expert help and advice. Contact David with confidence! David will look out for your best interests and do his best to help you reach your goals in the time you want.

Save time and money by calling these

reliable & trusted professionals!

David Olson RFC, CRS, Broker 651.295.2712