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Category: Investment (page 4 of 20)

October 13, 2009

The (last) Amend

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

The Notion

In my dream I’m always gasping for air; as if the trillion or so cubic inches of ozone I’ve already blown through in my lifetime somehow counts for nothing.  I awake, step over the dog, and scramble downstairs in my boxers in search of a physical remedy to a metaphysical dilemma. Something is bothering me and I can’t quite place my finger on it. Life is short and, on this crisp autumn eve, I’m clearly too underdressed to even be considering my last breath.  Our fifteen-year old cat follows close behind, his own mousy demons no doubt,  in tow as well.

‘Dear God, please don’t let me die with money in my portion of the Charles Schwab account,’ I think as I root through the herbal medicine cabinet,  next to the dishes, above the microwave.  ‘That’s what the Prudential life insurance policy in the house safe is for,’ I obsess. It’s an odd recurring thought, I realize. Just being forthcoming.

We keep no real drugs in our house.

Ginkgo Biloba, Paranil, Senna, Licorice Root. Green Tea, White Tea, Black Tea…where the fck is the Alka Seltzer?

Over the years I’ve developed an internal ON/OFF switch of sorts; a requirement for any man whose livelihood  simultaneously hinges on rejection yet somehow also depends on the act of a total stranger purchasing something of considerable value; house, condo, etc…. every month. It’s an Acceptance thing, I’ve learned. This emotional circuit breaker has, for a long time,  assisted me in affairs of the heart,  finance,  most of  the Deadly Sins—Fear, Greed, Anger, etc… not to mention social and personal guilt.  And in case you haven’t  been following the box scores at home this season,  I’ve been in the OFF mode for a while now.

thankyouverymuchhaveanicedaybiteme….next

Over time I’ve learned to appreciate  the next ‘Next‘  in life—I just haven’t learned not to  eat Mexican food before retiring for the evening or found a way to avoid the night scares that have startled me ever since that stupid monster began squatting in my childhood closet at 39 Vineyard Road in Levittown.  And as my Life flickers before me this particular night, Read more

October 6, 2009

Want buyers to think you are better than sliced bread?

by

Realtor, Productivity Guru

Author website

Were ready for step two of the series on how to effectively use a tablet PC to run your day to day real estate tasks.  I’m including a screencast to actually give you some visualization on how I actually use my tablet PC for working with buyers in the field. Warning: Please turn down volume on screencast prior to starting.
Using a tablet PC when out in the field

The basic premise of what I do with buyers out in the field is extremely simple but very effective for organization, having a go-to information source, and being looked to at a whole new light in your clients eyes.

What I do when working with buyers using my tablet PC:

  • Fire up my MLS and find the homes that I will be showing to my buyer
  • Go to File Print and select the Print labeled “One Note 2007”
  • Once the spec sheet is in One Note I move it into a pre-created notebook for my specific client for organizational reasons
  • You can also print specific tax bills or anything relevant to that specific house you can think of that maybe handy and impressive to show in-front buyers.  The most relevant thing that I have added into my showings is the listing history/price change sheet.  (We all know they ask they questions almost every time no more fumbling, time to be the expert we really are!)
  • Next I go show the house and take notes on each property that we see so I can give relevant feedback to the listing agent.  Taking notes on every house is also a great way to remind buyers about the prior homes.

As you can see what I’m presenting here is really simple and should not intimidate anyone that is afraid of technology.  It’s as simple as Print/Move to a Notebook this is a good start of what we will be building in on future posts.
The real reason I’ve decided to take on this Tablet PC for Real Estate blog journey is to communicate with other people who share similiar interest’s and can share new ways of working with a tablet PC to become more efficient Read more

September 19, 2009

Real Estate Investors: Its Time to Come Out of Hibernation

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Real Estate Investor

Author website

Is it time to start investing in real estate again?

 

First positive sign, I am writing again.  While I write that half-jokingly, there really has not been a lot to write about for the past six months.  My previous advice was to take shelter and start researching the markets.  Well, I have done that and I hope you have too.  It’s just about time to put that great research to work.

 

Second positive sign, mortgage rates are still historically low and the media has begun to talk about a real estate recovery.  Since the news outlets are always about six months behind the real estate market, I would assume we are probably at least six months into a modest real estate recovery.  Low real estate prices and low mortgage rates create an excellent investing climate.

 

Third, mortgage rates are beginning to rise and there is substantial talk of a market recovery.  As the economy recovers, expect mortgage rates to rise.  Depending on the inflation indicators, we could see mortgage rates rise rapidly or we could see a gradual increase interest rates if it remains tame.  Regardless, no one expects rates to get substantially lower, so if you can qualify for a mortgage (and that could be a big IF), it might be time to buy.

 

Expect more from me as I see a general market recovery.  As one of the few real estate investors on this blog, I like to consider myself a slightly more objective analyst of the real estate market, as oppose to the perma-bull Jeff Brown.  Agents should start contacting their investor clients now and investors should start contacting their mortgage brokers.

September 5, 2009

Even though much of the current real estate “news” is really just hype, there can still be good reasons for you to be in the market

by

Suburban Phoenix Real Estate Broker

Author website

This from my Arizona Republic real estate column (permanent link):

Get a load of all that great housing news! Median prices are up! Sales volumes are up! The prognosis for the future? Up, up, up!

Here’s a different take: If it looks, walks and talks like hype, it’s probably hype.

Are houses selling well, compared to a year ago? They are — but the federal government is giving first-time home-buyers $8,000 in free money to buy houses right now. If that tax credit is not extended or replaced with something even more generous, the music will stop on November 30th.

And while median home prices may be up, prices for homes that normal working people actually buy are flat at best — and they have been trending downward since December of 2005.

But what about the shortage of available homes you have read about? What about the multiple offer scenarios, with homes selling for thousands of dollars over list price?

What would you expect to happen when you artificially stimulate demand at the same time that you artificially limit supply? We should be doing what your grandpa used to call “a land-office business.” Instead, even with $8,000 in free money, prices are still trending downward.

And that artificially-limited supply — all of the foreclosed homes that banks are withholding from the marketplace — will flood the market sooner or later.

If you’re in the real estate market right now, what you should do depends on your circumstances.

If you’re a seller, make a deal. Your carrying costs will almost certainly exceed any gain you can hope to realize by waiting out the market.

If you’re a first-time home-buyer, jump. If you’re not under contract by October 15th, you’ll probably miss out on the tax credit — and houses are not easy to get, taking account of the artificially-limited supply.

Buying with a loan? Interest rates are low for now, but they may not stay that way.

Buying all cash? Sit tight. As sweet as prices look right now, it seems likely they’ll get a lot sweeter when the banks finally release all the homes they’ve been hoarding.

 
Spread the word: Click here for a Read more

July 17, 2009

A Sailor Jerry Moment

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

tattoo

The base anticipation that precedes any journey to a new destination is always more vivid for me than the denouement that accompanies the physical descent to earth.  With rare exception (perhaps Paris and maybe Vegas), the image I conjure up in my two dimensional mind beforehand always seems to fall somewhat short of the real 3-D deal.  On our first trip to Maui, for example,  my notion of grass huts  and Woody Wagons clamped with surfboards was quickly dashed the moment I spotted a Costco and a  Wal-Mart just steps from the arrival terminal. It was raining  ukuleles that day and the lone, Port Authority hula dancer was, how shall I say… Samoan? I was expecting something a bit more, I don’t know….svelte?; like the subject of one of  those Sailor Jerry tattoos I threaten to get stenciled across my chest every 120  lunar cycles or so—-pure 1950’s  South Pacific paradise-of-the-mind stuff. I think we  bought our own leis for 8 bucks each at the gift shop, rented a Taurus from Avis, and called it a day.

And it’s not just Hawaii. The same holds true for Jamaica—or as I like to call it, The Bangladesh of the Caribbean, with its human squalor, smelly ceviche,  and over-abundance of  muddy water. Even the Antiquarium in Boscoreale, Italy, beneath the shadows of a nearby looming housing project,  is sequestered by a string of barbed wire and discarded heroin needles. Not that I don’t enjoy myself abroad, mind you. I’m an enthusiastic traveler, to be sure. The foreign landscapes that ultimately unfold just never fully mesh with the spatial images dancing around in my head before touch down.

Alaska was pretty spot-on but to be honest, I wasn’t expecting  too much from that particular latitude. And while I did not get a tattoo while docked in the port of  Juneau,  I was presented with a  shiny new Rolex Datejust in our cruise ship cabin later that evening.  Since I’m clearly never retiring from anywhere,  my wife decided to give me my ceremonial timepiece a few decades early— for my 50th birthday.  Just so you know, Read more

June 30, 2009

Face Down in Iceplant

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

To pluck a petal from the bloom of  friend and  recondite commenter, Don Reedy, I’ve been ‘face down in a slope of iceplant’  for 30 days. Yes, iceplant.  (I’ll let the man himself expound a little later but allow me to tempt you with the essence of his yarn—- it involves a houseboat in San Diego, a Belushi Halloween costume (including handcuffed briefcase), and a lost weekend somewhere in the bowels of the 1980s. Un huh.)

You see, I too have been on a pastoral  quest  of sorts this month and  presently find myself scurrying through the  Bloodhound shadows to slip this flimsy piece under the Big Dog’s door before the triple witching hour tonight—June’s last breath.  I take a peek around the literary pound and am relieved to  find that my WordPress password is still active and that my name and mugshot are still posted on the BHB sidebar.  Only a handful of  hours remains between me and blanking an entire month on the hallowed front post page. Hopefully I’ll push Publish before the final strike of Midnight and keep the holy streak alive.  Admittedly, I’ve been remiss in my self-imposed dogmatic duties.

So this is what has gone down since I last posted Mother Nature is not a MILF on May 30th (an essay written mostly on my iPhone that netted a total of 6 unique comments including a few of my own trite responses). I pooled my talents, sunk my literary savings into a mental Ponzie marketing scheme, and found myself  nearly wiped clean from the blogarian grid as I danced 30 days straight ‘with the one who brung me’ to this economic station in life to begin with—real estate sales.  Eleven of them to be exact.  I’ve never done eleven of anything in a single month much less an activity involving commission checks with accompanying deposit slips.  And now, after eleven hard money contracts written and/or Closed in June, I come crawling back to my digital workspace on knees and elbows on this last day of the month, famished and thirsty for Google juice; mind, gut, and Adword Read more

June 30, 2009

Do It Yourself and More Nonsense From Otherwise Intelligent Folk

by

Real Estate Investments Broker

Author website

At 57 I still can’t decide if those insisting on always doing things themselves are deluded, arrogant beyond understanding, or so much brighter than I am, I’m doomed to forever be in the dark. The unrelenting confidence oozing from the pores of do-it-yourselfers piss me off if only on principle. 🙂 How many times do they hafta reinvent the damn wheel — reborn as a richly elegant octagon — before they discover the problem is them? Of course there are usually so many questions they don’t even know to ask — their ignorance basks in the glow of never ending faux bliss.

Wanna know the problem with ignorance? Ya never know how much you don’t know. Why? Often cuz you’re a do-it-yourselfer. Today I’m speaking mostly to real estate agents, but the principles apply to any job. As an agent your bottom line job description ain’t rocket science. You’re either finding a home for someone or selling a home for someone — both in a timely and professional manner. As simple as that is to state, we all know from experience that’s a bunch of overflowing plates on our daily table. All the skill sets required to become expert in those two jobs can be daunting when one wishes to actually, you know, be an expert.

Those skill sets are learned. Mentors, company training programs, blogs, seminars/conferences, webinars, and even books are some of the vehicles carrying agents to the legitimate status of expert — combined of course with endless hours of repetitive study and practice. Yet how many times do we see a so-called expert, often self-proclaimed, wanting us to believe they did it all themselves? They all have brown eyes eventually, cuz spewing that BS long enough tends to turn ’em that way.

You’re not an expert in online technology. You’re not an SEO expert. (Though you and I may be the only ones online who don’t claim that these days.) Let’s look at an incomplete list of related areas of expertise for which do-it-yourselfers fail miserably while belligerently maintaining they’ve mastered them. What a crock.

Using Read more

June 27, 2009

The “cap and trade” bill is full of outrageous proscriptions on private property rights — so the NAR is campaigning against honest appraisals instead of fighting the growth of the nanny state

by

Suburban Phoenix Real Estate Broker

Author website

If you had your blast email spam from NAR President Charles McMillan, you know what’s important to the Grand Poobahs: Appraisers are all of a sudden just too dang honest, and that’s bad for business. Meanwhile, the so-called “cap and trade” bill that narrowly passed in the House of Representatives last night is full of nightmare provisions impinging on the rights of private property owners to do what they want with their land and structures. Where was the NAR? Elsewhere, of course. Where else?

From JammieWearingFool:

Beyond what it will do to our economy, at the end of the debate House GOP Leader John Boehner took to the floor and started reading from the 300 page amendment that the Democrats drafted and dropped on the legislatures at 3 AM, there was literally hundred of items to impose federal control over your life. Here are some highlights.

Want to replace a window? Not so fast. First you must pay for an appraisal of your house to measure its energy efficiency and receive calculations of both before and after the proposed change. Hey, it may be a great excuse for those guys trying to avoid putting in that big bay style window that the missus has been bugging you about.

Are you having a new house built? Back up, Skippy. This bill includes language that tells you exactly where you can put your electrical outlets.

Did you know that for one sort of appraisal service related to determining energy efficiency there is only one company you can use? Yup, it is right in there along with the name of the company. How is it that this one company managed to land the only contract to service 300 million Americans? Who is this company?

I wish I could answer those questions, but all of those provisions and more, Rep. Boehner went on for almost an hour citing them and still didn’t get through the whole 300 pages, is not available. You see because of when the Democrats dropped this amendment at 3 AM the text of it is not available. So much for that transparency. The total bill runs on Read more

June 22, 2009

Just because the real estate market is being trumpeted by bull horns, that doesn’t mean it’s time to retract your bear claws

by

Suburban Phoenix Real Estate Broker

Author website

I’m the leading bear in an article in Saturday’s Toronto Globe and Mail. I wasn’t as dour as the overall slant of the article, but it remains that the Phoenix real estate market is overbuilt. We have more kitchens than cooks, and, as long as that is so, a robust and enduring recovery is not possible.

One thing I didn’t say, but I wish were true: “Mr. Swann said he has clients from Canada, California, Oregon and elsewhere snapping up dozens of houses at a time.” I have dozens of investor clients, most of whom are buying nothing right now, since it’s stupid to compete for the privilege of over-paying for a rental home. I have one client who plans to buy dozens of homes, but who has not started yet.

The interesting thing is, it really is a great time to buy a house in Phoenix — except at the very low end. Sellers with equity are finally waking up and smelling the coffee, so the move-up market — at least below $500,000 or so, jumboland — is really starting to move. First-time home-buyers, enriched by the $8,000 tax credit, are butting heads with out-of-state investors for all the homes priced $100,000 and under. But for people with buying power, things are looking very rosy right now.

Even so, the Globe and Mail article is good reading. The authors explore a lot of systemic factors that could make our current mini-boom a fondly-remembered oasis in a desert of on-going bad news.

May 30, 2009

Mother Nature is not a MILF

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

Now the hard part—fabricating an essay that somehow pertains to real estate and ties in with the above catchy title; one that popped into my head while hydroplaning through a stop sign in a downpour earlier this month.  At the next red light I quickly texted the lofty thought to myself  expecting to come up with an accompanying  point (and several hundred additional words) once I made it safely back to my desk—my writing desk that is. Not my selling desk. I have a separate hard, cluttered surface for each, you see.

More accurately, what I’ve set up are creative stations for each side of my brain;  right brain/writing desk,  left brain/selling desk.  And it’s not hard to tell when I’m performing the wrong  creative duty at the wrong desk, either; I basically suck at whichever task is at hand, I’m always running  behind schedule, and I don’t make any money.  Anyway, that  Mother Nature idea was almost three weeks ago.

So tonight  I was reading  Jeff Brown’s latest post (and most of the 100 or so comments that were bound to ensue) when finally, the ideal segue hit me.  Transparency!  Why not try and give that clear concept a whack myself since, as hard as I tried to think of a comment to insert, I had nothing intelligent to add to Mr Brown’s already lengthy thread.  Perhaps  instead, I could unveil a few secrets of my own that the BawldGuy might feel are nobody’s fiscal business.  Actually, I  agree with him (and his grandparents) on this one but I happen to be sitting at my selling desk  in boxer shorts now so…. down they come.  Ah transparency.

* In 2006 I earned more income selling real estate than the combined government salaries of the Vice President of the United States and a typical  City of Chicago Streets and Sanitation worker on the ‘no show’ payroll.

* Last year, according to the cover of Parade Magazine, I basically matched dollar for dollar with the average preschool teaching assistant in Youngstown, Ohio (Fail perhaps, but not quite Perish).

* So far this selling season, I’m keeping  signing Read more

May 12, 2009

A quick, random thought

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

It’s not that I couldn’t somehow get my hands on a late model Ferrari if I really wanted one (and I doubt I’m any different than most happily married men of my demographic in this regard). After the divorce, I’d simply have to move in with relatives, liquidate whatever is left for 100 pennies on the dollar, then slap down the balance on American Express between billing cycles, that’s all. With the proceeds I could probably score a pretty decent off-lease, if not road worn,  Enzo Berlinetta…in the least desirable color—with stock rims. I’m just saying.

I want one, but ideally…I want one 20 years ago.  (Actually, I’ll just take the 20 years ago and you can keep the Ferrari and this whole real estate business.)  A 32 year old Realtor in a Ferrari is a Bad Ass but a 52 year divorcee old living at home with mother is….well, just plain sad—especially when forced to park a high mileage phallus behind her Subaru in the driveway. (God how I hate that Freud.)

So this middle-aged guy zooms into my rear view mirror on the freeway entrance ramp last evening, hesitates for a double-bump tach rev,  then screams past me on the right in 1st gear. He was neatly tucked into a couple hundred thou of  handcrafted, precious scarlet metal and buttery cowhide.  His straw gray, combed-over tonsure hovered in the breeze above a sun-chapped bald spot. A rose gold Chopard watch, with matching cuff links, deflected all remaining rays of Envy as he dissolved into the North Shore Chicago smogset.  Judging from the pink gold blur, I pegged his left wrist alone at around 50 grand. Clearly, our little speedster’s got more jack than any man knows what to do with. His engine sounded like an amped-up Joe Satriani guitar riff in the dusky ether.  His license plate read RAINMKR. I’ve been behind this ass clown before.  He used to double park his banana cream Bentley at a renowned Viagra Triangle watering hole during happier hours. Must have gotten a divorce. If he got a red Ferrari then somebody got a house. Read more

May 2, 2009

Are you looking for a flinty-eyed steward to protect the value of real estate? Whatever you do, don’t turn to a banker!

by

Suburban Phoenix Real Estate Broker

Author website

This from my Arizona Republic real estate column (permanent link):

If there’s one thing we can say we’ve learned from the housing bust, it’s this: The worst conceivable stewards of financial assets are bankers.

At every step of the real estate market’s retrenchment, the bankers have been right there, on the spot, ready to make precisely the wrong decision — days, weeks or even months late.

Can’t make your payments? Put the home up for sale. Will the bank honor an offer short of the amount owed? Maybe. Maybe in six weeks, maybe in six months. Will the buyer still be there when the bank finally responds? With prices declining by thousands of dollars a month?

So the bank has to foreclose on the home — at an imputed value far lower than it could have had from the short sale. And then it must list that home for sale at a still lower price.

But don’t waste your time looking for evidence of prudence or even simple greed in a lender-owned listing. The home will be filthy, with fixtures and smoke alarms missing. The kitchen range will have been stolen, thus to assure that the home is not accidentally sold to an FHA or VA buyer.

If the bank inadvertently approves a purchase contract for the home, it will do everything it can to avoid recouping even a tiny fraction of its losses. First the bank will attempt to savage the deal by completely rewriting the contract. And everyone involved in the process will be insanely overworked, so that even the simplest question will occasion a two- to five-day delay.

Absolutely nothing will be done to address even deal-killing defects. But because the decision chain is so convoluted, negotiations over problems will drag on for weeks or even months. That way, when the deal falls apart, as many do, the bank will be able to relist the house at an even lower price.

I wish I were making this up. I want to deride bankers as being clowns, but that’s unfair to the clowns. They produce wealth, rather than destroying it — and they dress better for work, Read more

April 17, 2009

The two dirtiest words in English are “tax” and “attorney” — but new contributor Phil Hodgen is both…

by

Suburban Phoenix Real Estate Broker

Author website

Phil Hodgen has been a friend of BloodhoundBlog for a long time. He’s an international tax attorney working out of Pasadena, so why would he be reading the dawgs? Marketing and iconoclasm, the only two things we actually understand.

At Chris Johnson’s suggestion, he joins us today. Here’s his bio:

Phil is an international tax lawyer. Home is in Pasadena, CA. Clients are all over the world. Yes, he’s of those people you read about, setting up foreign trusts and other weird stuff in small palm-fronded countries. His clients like U.S. real estate, although at the moment they are just kicking tires. Phil makes complex tax stuff easy to understand.

Sounds like a giant killer to me. Let’s give him a big axe and see what he can do with it.

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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