Frankly Speaking

Recently I spent the weekend in Long Beach watching my fiancé  run her first marathon. For the record, she was amazing. Finishing the 13.1 mile trek in a scant  two hours and forty six minutes. This of itself is noteworthy and should be proclaimed for all to read in a publication such as the press enterprise. However, while I am very proud of her effort, I am actually writing for a completely different reason. For the two weeks leading up to this event, she was filled with self-doubt. Was she ready for this challenge? Did she train as effectively as she could have? Would it be too hot or too cold? Would she be able to go the distance which was 3 miles farther then she had previously run? And as we discussed her concerns (call me silly) I actually started thinking of all the insecurities that buyers have to overcome in order to create a mindset conducive to buying. Is this the right house? What about the neighborhood…Will my family be safe? Are the schools going t...

Today (September 11, 2011) as I write this I am preparing to board a plane bound for Hawaii. Part vacation and part work this trip in and of itself is a statement to those who would bring America to her knees if they could. We as a country have never settled for defeat. And, I pray we never will. Ten years after the last plane fell from the sky. Ten years from the time the last tower fell. Ten years from the time the last hero breathed his (or her) last breath. We continue to remember those who we lost, and those who were saved. As I await takeoff I cannot get enough of the television coverage marking this historic date in a most appropriate manner. And, front and center in the celebration is arguably the most famous piece of real estate in America, Ground Zero. Ten years ago almost to the minute this hallowed ground having just seen her twin monuments to capitalism fall, and the land now intrinsically holding little value.  In the world of commercial development the value ...

I had the pleasure of sharing lunch with Congressman Ken Calvert from the 44 th District a week ago.   And, I have to tell you, if it is your hope to once again have a robust economy. One in which the housing industry plays a prominent role, we need more leaders who think like the Honorable Mr. Calvert. Over the course of lunch our conversation ranged across many topics. But, as you can imagine real estate was the main course of this meal. We started out the meal oddly enough, by his asking me what the residential market was like currently here in the Inland Empire. My response was that our average days on market appears to be rising. And, despite the fact that money is on sale (we are seeing historically low 30 year fixed rates) buyer activity is still tepid. He in turn advised me that the commercial market is very similar. And, that a high percentage of sales are coming from investors who have pulled out of the stock market and are positioning themselves in the “historically” m...

Today, I read an article in the newspaper that said Congress had passed a bill asking the banks to rent out their foreclosed homes while they waited to market the homes for sale. The idea is that this will stabilize neighborhoods impacted by a high number of foreclosures. And, in doing so preventing further erosion in values. On the surface this seems like a reasonable request. One well founded in reason. And, this is one possible solution to a concern certain to impact neighborhoods across the country. However the real solution is not in a temporary fix like this. Instead, the solution  is to see that these loans become performing loans once again. Now before I go any further, I must say that the ideas, I am about to discuss are not my own. In fact, they come from Bruce Norris (of whom I spoke last week). As I said in my last article, I have a tremendous respect for  Bruce. His understanding of our market borders on genius. And, having followed his projections for the past f...

For nearly 20 years now, I have been a faithful attendee of the Thursday morning breakfast meeting held at The Inland Gateway Association of Realtors. Over these past two decades I have built many strong friendships. And, I have secured many transactions that might otherwise have been missed. But the main reason that I have religiously attended these meetings is that on this one day every week I am forced to focus on my craft. And, I am given access to information that I might not otherwise receive because of the speakers that they invite to enlighten us. This past week I sat in pure awe as Bruce Norris, a man whose opinions I respect greatly spoke to us at great length about the current real estate market. And, the challenges and opportunities that this market offers those willing to participate. There is no way that I can possibly cover in any detail all that he shared with us in such a limited space. I will however do my best. First it starts with our current interest rates. I have ...

Over the past couple of weeks we have been examining the some of the benefits and risk associated with creative alternatives to conventional financing. And, I hope that you have found the information helpful. Today, we will explore two more methods to complete an otherwise difficult sale. They are the seller financing options of holding a first or second note on the property. First you might wonder why anyone would want to carry the note on a home that they intend to sell. Great question. And the answer is more common than you might think. Let us assume that our seller is older and he holds title to his home free and clear. And, that he has sufficient assets to retire comfortably. Selling his home will provide him with cash he may not need at the time and expose him to tax liabilities that he does not want to pay at the moment. In this scenario, if the seller decided to carry the note, he could structure the loan over thirty years, with an interest only payment and require that the not...

Last week we spoke of two “creative” methods of transacting the sale of your home when you have insufficient equity to do so through traditional means. They were the Land Contract and AITD (wrap around mortgage). Each of these methods can be useful “tools” and a skilled professional should be well versed as to when to pull them out of their “Toolbox”.   That being said, each of them do have their own risk and benefits for both the buyer and the seller. And, they should only be used when traditional methods are not an option. Today, I thought we should all talk about the five hundred pound gorilla in the room. We all know he is there. And yet we refuse to discuss his presence for fear of dire consequences. That is the Short Sale. I actually did my first short sale in 1993 shortly after receiving my license to conduct real estate. It truly was a fluke. While attending a breakfast meeting at the then Corona Norco Association of Realtors, a gentleman got up and started promoting his bo...