Frank Zeno's Posts - Real Estate 411

What real estate trends suggest for 2013

2012-12-30T18:41:07.000Z

What real estate trends suggest for 2013

As 2012 comes to an end, most real estate professionals sit on the edge of their seats, anticipating the outcome of the fiscal cliff and how it will affect the housing market going into 2013.

However, there are real estate trends, both nationally and locally, from 2012 that may indicate what is expected in 2013, according to the latest trend data released by Realtor.com.

Inventory was a huge player in 2012, with the total U.S. for-sale inventory falling 45% since its peak in 2007 to 1.674 million units for sale. The median age of the inventory dropped as well, down by 11.4% since November 2011. These numbers indicate supply-and-demand playing a big role moving into 2013, at least for the first half of the year.

On a local level, markets that were the epicenter of the housing crisis continued to gain momentum while the Midwest and Northeast areas — typically more industrialized — continued to falter. States such as Arizona, California and Washington ended the year with dramatic drops in inventory and significant price appreciation of at least 10% year-over-year.

Click on the image below to see the greatest year-over-year inventory reductions.

Conversely, markets in states such as Illinois, Indiana and Ohio, which gained little price appreciation, did not experience dramatic inventory change. Only five areas saw a year-over-year increase in for-sale inventory including Cedar Rapids, Iowa, Philadelphia, Pa., and Shreveport, La. This increase in inventory indicates a continued weakness in both their housing markets as well as the local economy.

Richard Green, director of USC Lusk Center for Real Estate, believes the housing inventory will even out in 2013.

"I was surprised at how good 2012 turned out to be,” Green told HousingWire. “As prices go up, you’re going to see fewer and fewer people underwater on their houses. They are going to feel more and more free to sell their houses."

Green also offered advice to real estate professionals who may be unsure about what the next few months will bring to the housing market.

"The fiscal cliff is overhyped. If we go over it, we go over it. It’s not a cliff, it’s a slope."

This reiterates a report released by Barclays on Monday indicating that if the fiscal cliff were to hit, the housing industry would likely slow, but not enough to a point where it would become particularly vulnerable to a sharp contraction.

Additionally, Doug Duncan, chief economist of Fannie Mae, said Tuesday, "Despite unsteady macroeconomic conditions, we anticipate housing and mortgage activity to gain momentum in 2013."

Five key Taxing misconceptions: commitment to keeping more of your earnings

2012-02-21T16:01:53.000Z

Taxing Misconceptions

by PJ Wade

We’re stuck in an annual "money rut" that is not doing anyone any good.

The emphasis on investing for future security and minimizing income tax is crammed into the first third of the year. During the remaining two-thirds of the year, consumers are encouraged to spend, especially during December. Is there any wonder that debt tops savings for most consumers?

From January to April, finance is king in the media, but is the right message getting through?

The media, online and off, offer tax-bites that arouse curiosity, but rarely is there a "mental meal" that leaves the reader or listener full of actionable knowledge.

Accountants and other financial professionals are forced to compress a year’s worth of financial advising into the weeks before the February 29 RRSP deadline and the April 30 income tax deadline.
Consumers are deluged with "buy me" financial messages embedded with multimedia marketing finesse that makes comparison shopping for products and services exhausting.
The phone lines at the Canada Revenue Agency (CRA is responsible for Registered Retirement Savings Plans (RRSP) and income tax) are so busy that even getting through to wait on-hold is an accomplishment.
The federal Task Force on Financial Literacy declared November Financial Literacy Month, but has that changed the way you think about saving or tackling income tax forms?

What keeps the "money rut" approach to finance going for you? Do you think there is little you can do because you don’t have millions to invest? Are you overwhelmed by what you don’t knowabout finances? Do the stresses of life and career leave little room for clarity about what exactly you can do that will make a financial difference?

How many of the following five key misconceptions about RRSPs and income tax—all of which contribute to undermining year-round commitment to keeping more of earnings and building savings into financial security—resonate with you?

1. RRSPs are the ultimate retirement savings vehicle.

That may have been true in the last century when retirement was a handful of quiet, low-income years before death, but lifestyles have changed. The 21st-Century version covers decades of extended living during which income may increase, or at least stay the same as during traditional working years.

RRSPs were designed to defer payment of income tax on saved income until retirement when incomes were usually 40 per cent or more lower than in working years. If you expect to continue earning over your extended-living years, RRSPs may eat up savings.

Losses suffered in an RRSP do not count as a capital gains loss, so you’re out on two levels. Enter the Tax-Free Savings Account (TFSA), which entitles individuals to deposit up to C$5,000 each year in a savings-style or investment-portfolio style account where profit is not taxed.

To learn the TFSA advantages, start with the basic introduction provided by CRA. You can deposit up to $20,000 if you start this year. Then spend your time growingthis principal and re-investing tax-free profit. Withdrawals are not taxed or held-back like RRSP withdrawals.

2. You can make tax-free withdrawals from your self-directed RRSP.

CRA calls this a myth and makes the following clarification: "If you use your registered retirement savings plan (RRSP) as security for a loan, the value of the RRSP will be added to your taxable income. Similarly, if you use your RRSP to purchase shares of a private corporation, and the shares are not a qualified investment under the rules, then the value of the shares will be added to your taxable income.

Some promoters of financing schemes may promise you that they can make tax-free withdrawals from your RRSPs. Typically, the arrangement involves using your self-directed RRSP to purchase shares of a private company.

The funds used to purchase the shares are then loaned back to you at low or no interest... If you respond to these kinds of [arrangements], you risk losing your retirement savings and the tax benefits of the RRSP." This is one of many examples of consumers looking for fast-track solutions to longterm projects, and making their money vulnerable to scams and fraud in the process.

3. If you claim expenses for your homebased business when you file your income tax, you’ll lose the tax-free principal residence status of your home.

Although claiming loss of value for your real estate, or depreciation, can jeopardize this status, the solution is simple, don’t claim depreciation on the building unless you are positive there won’t be any increase in value over the years ahead.

There are enough deductions, including apportionments of mortgage interest, property insurance, heating/cooling, and maintenance costs, to reduce income tax paid, so depreciation should not be missed. Depreciation on equipment and vehicles is another allowable expense. There are many other benefits and some other cautions, so search out CRA CRA events and seminars, or contact your financial advisor for details.

4. Setting up a budget and receipt-logging system is only useful for businesses.

This misconception is usually linked to the misguided belief that filing an income tax form is simple enough to leave to the last minute.

Knowing where your money goes each week, month, and year is vitally important for spending wisely each day. This bookkeeping system also makes preparing your income tax faster and easier.

Cheaper, too, if you’re hiring an accountant or tax service. Organizing your accounts reduces stress and leaves you free to investigate annual changes to The Income Tax Act. For instance, are you one of up to 85,000 volunteer fire fighters who stand to benefit from the C$3,000 non-refundable tax credit?

5. There are people who are exempt from paying GST/HST or income tax.

CRA lists this and variations on this theme of legitimate non-payment as mythsand provides explanations of why everyone, except lottery or sweepstake winners, must pay tax on income.

The CRA prosecuted 1,124 individuals for failing to file a tax return and successfully prosecuted 323 cases involving income tax evasion or fraud in the 2008-2009 fiscal year.

If you hesitate to file because you cannot pay what you owe, contact CRA to arrange payment, but file by midnight April 30 or face late filing charges. Self-employed individuals have until June 15, but, if money is owed, those funds should be paid by April 30 to avoid interest charges.

Published: February 21, 2012

Tax Incentives Benefit Younger Households

2012-02-21T16:00:00.000Z

These Findings Could Affect How The Tax Codes Can Change

Younger Americans may now have added incentive to enter the housing market. New research reported by the National Association of Home Builders (NAHB) shows that certain mortgage tax deductions may decline with age, and thus favor the younger set of the nation, specifically those aged 18 to 45

Recently released Statistics of Income (SOI) data from the Internal Revenue Service (IRS) shows, according to the NAHB, that "the descriptive statistics ... demonstrate that the housing-related tax deductions, the mortgage interest and real estate tax deductions, strongly benefit younger households who tend to be recent homebuyers with larger mortgage debt."

These findings could affect how tax codes changes are proposed in coming years, as an ailing housing market needs first-time and Generation Y homebuyers to enter the market.

"Opponents falsely argue that the [mortgage interest] deduction is only for the wealthy but it is clear that the mortgage interest deduction is also of great value to younger homeowners," said Robert Dietz, Assistant Vice President for Tax and Policy Issues for NAHB.

"Any tampering with this deduction would have a disproportionate impact, as a share of household income, on younger homeowners who have relatively higher mortgage interest payments. These are households who have growing demand for homeownership due to marriages and children."

According to the research, the average mortgage interest deduction was highest for the 35 to 45 age group, and then declined with age. Those under the age of 35 had the second largest deductions, at around $12,000 average.

The same trend is seen for mortgage insurance deductions. NAHB research shows "as is expected, the largest shares for this deduction, associated with homebuyers with less than 20% of the home price as a downpayment, are for those aged 18 to 45."

These tax advantages, along with more affordable pricing and historically low interest rates are even more reason that new buyers should consider entering the market at this time.

Published: October 13, 2010

Green building growth increases, 10 green building trends in 2012.

2012-01-30T13:35:36.000Z

Top 10 green building trends in 2012

Green building growth increases, water issues become more important, global carbon ratings have weight

By Builder Magazine, Tuesday, January 24, 2012.

By CLAIRE EASLEY

Jerry Yudelson is about as green as they come. In his more than 25 years of work in sustainability, he has been a member of the U.S. Green Building Council's board of directors, a Leadership in Energy and Environmental Design (LEED) national faculty member, and is the co-founder and director of the Green Building Service consulting unit at Portland General Electric. Last year, Wired magazine dubbed him "the godfather of green."

So what does the industry insider have to say about where things are going? "The construction industry is going to have modest growth this year," Yudelson said Tuesday in a webinar on GreenExpo365. "It seems that most people have figured out that the sky isn't going to fall in and they are going to get back to doing business ... but with an emphasis on what I call 'frugal green.'

"In the past there was a feeling that you could spend money to add green features. I think today the real challenge for construction and design professionals is 'How do I do this on the same budget?' and I think that's the core trend."

Yudelson unveiled a list of 10 other green megatrends destined for growth in 2012, both in the U.S. and abroad. And while, like the rest of the homebuilding industry, green building will certainly face headwinds in coming days -- such as squeezed budgets among families and governments -- the market is poised for growth, he says. "You make money if you go green. If you don't go green, you're at a marketplace disadvantage."

10 Green Megatrends for 2012

U.S. Trends

1. Green building growth to rebound

LEED project growth was slow in 2011, only gaining 3 percent for the year. But while LEED certification on new projects may take longer to gain much steam, the program's retrofitting arm, LEED for Existing Buildings: Operations and Maintenance (LEED-EBOM), is quickly gaining traction.

EBOM project registrations were up 18 percent last year, and the EBOM project area exceeded the cumulative LEED-NC (New Construction) area for the first time, with 675 million square feet of EBOM vs. 649 million square feet of NC.

"That trend will continue this year," Yudelson says, as more property owners realize that retrofitting to LEED standards is fairly painless when starting with a building that is already Energy Star-rated.

2. Federal momentum has slowed

The Department of Defense recently stipulated that projects can't spend any extra money on energy program certification, and while "that's not necessarily a killer," Yudelson says, "it is an indication that there is some backlash for spending extra money on anything."

Getting federal funding for green projects will be harder going forward, he says, especially given the recent Solandra scandal and the federal budget crunch. But while state and local governments aren't faring much better, that's where the action will be, he says, as existing buildings will need to be upgraded, projects in the pipeline will move forward, and schools -- which are funded by bonds -- will need to be built.

3. LEED-EBOM will gain momentum

"We're going to see this move to other sectors," he says, particularly among hotels with strong convention and meeting businesses who want to be able to market their eco-friendliness. Grocery stores, hospitals and retail centers are moving in the same direction, with features such as solar panels on top of Wal-Marts or department stores.

"Last month, President Obama and former President Clinton announced the Better Buildings Initiative. It's only $4 billion, so it's not huge. But still, this is stuff that moves markets. When you have two presidents pushing something, it does get people's attention. More and more building owners are realizing that they don't want to be late to the party."

4. Water issues grow in importance

"Even the water-wet areas have water problems brought on by infrastructure problems and population growth," Yudelson says. "Florida doesn't have a place for a reservoir in the entire state, so even if you have a slight drought, you have big problems."

He predicts rainwater capture systems, as well as gray water and black water on-site treatment capabilities, will become more pervasive. "Instead of toilet to tap, we're going toilet to toilet."

5. Zero-net-energy to gain traction

"Zero-net-energy needs to be in your future," Yudelson says, adding that it works best on two- to four-story buildings that use only between 30,000 and 35,000 British thermal units per square foot per year.

"If you do a good job with integrated design, you can reach that (thermal units) goal," he says, adding that getting to net-zero should add only between 3 percent and 5 percent to building costs.

Global Trends

6. Green building movement will continue to grow

There are now more than 90 national Green Building Councils throughout the world, and LEED projects have been registered in 161 countries, Yudelson says. Last year, 44 percent of total LEED registrations were outside the U.S.

"This is a movement that you have to pay attention to," he says, adding that the "Big Three" energy rating systems -- LEED, BREEAM and Green Star -- are already converging toward common carbon metrics and common rating concerns.

7. Performance disclosure

Already popular in the European Union and Australia, requirements for buildings to disclose their energy use are gaining traction in the U.S. Beginning April 1, Seattle will require buildings of more than 10,000 square feet to disclose energy usage, and California will begin requiring disclosures starting next year, which Yudelson says will have a market impact, as prospective tenants will be able to compare what their energy costs will be between buildings.

"This is going to happen everywhere, particularly in big cities, because it's the easiest move to take politically. It doesn't say you have to retrofit the building. It just says you have to disclose," he says.

8. Global carbon ratings

Carbon ratings that remain standard across countries are of particular interest to global property management companies. "If your company is committed to sustainability, you're going to have to report this," he says.

It's also an issue for property investments tied to pension funds. "Anyone that has sustainable interests and wants access to capital will have to deal with this," he says.

9. Solar power stalls

"Solar power is kind of slowing down," mostly due to the costs involved, Yudelson says, adding that the focus is shifting instead to energy efficiency. "Solar is still happening. Lots of people like solar ... because it's visible and people want to see something for their money."

However, for those building new construction today, he suggests that the most responsible move would be to make it "PV ready," so that as solar becomes more cost-effective it will be cheap and easy to install.

10. Building management goes into the cloud

As buildings get more complex, Yudelson says, "we're seeing the need for software that allows us to manage buildings out of the cloud." Thanks to wireless sensors and controls, it's getting increasingly easier to better direct building managers and maintenance people to locate and fix problems, and to do so remotely.

Claire Easley is a senior editor at Builder magazine.

Social Networking: Twitter, the future is here, and coming on fast. Will you be ready for it?

2012-01-23T03:00:00.000Z

How to Use Twitter: Guide to Social Networking and Internet Marketing

What is Twitter

Twitter can be called a lot of things.

Twitter. A little bird told you about it.

Then he got distracted by a worm, flew away, and left you spiraling across the Twitterverse, wondering what "ReTweet" means, how to find friends, and how to send messages on this latest internet phenomenon.

Despite seeming difficult at first glance, Twitter is quite possibly the easiest social networking site on the internet today. Being text-based, Twitter does not take a great deal of time to load like many MySpace Pages, and since you can update from anywhere using your phone, it's quick and easy to keep up with friends and family, promote your music and writing, and expand your business.

The future is here, and coming on fast. Will you be ready for it?

How to Use Twitter

Step 1: Join Twitter!

Sign up at Twitter.Com. Most celebrities use their proper name (like Facebook), but feel free to use a creative handle (username) that shows off your personality, like well-known Blogger and Tweeter, @mashable.

Step 2: Twitter Profile

Fill out your Twitter Profile (Click on "Settings" at the top; fill in your name, website, biography, and location).

Step 3: Add a "userpic" to your Twitter Account

Adding a "userpic" (a small picture that shows up to next to your Twitter posts) humanizes you, which makes you more apt to gain followers.

In the "Settings" page on Twitter.Com, select the "Picture" tab. Read the handy information Twitter provides in order to upload the photograph that best serves your needs on Twitter.

You may change this photo at any time (I like to change mine often to keep things interesting).

Step 4: Add a background to your Twitter Page

Still in the "Settings" page on Twitter.Com, select the "Design" tab. You may choose a Twitter Background or use any picture you like (make sure it's not copyrighted) by clicking "Change background image." You may also change the colors on your Twitter page on the "Design" tab.

Step 5: Set up Twitter on your mobile phone so you can update and receive tweets from anyone

Click on the "Devices" tab to set up Twitter on your cell phone. Enter your mobile phone number and adjust the settings to your liking.

Using Twitter by texting is a free service from Twitter, but make sure your mobile phone plan includes unlimited texts, especially if you "subscribe" to receive Twitter Tweets from users who post often (like myself!).

You can even turn off Twitter Texts on the "Devices" tab whenever you are sleeping, in a meeting, or need to make a phone call and receive too many texts to hear properly.

Step 6: Download a Twitter Client for your Computer and/or Twitter App for Your Phone

Using Twitter could not be easier with clients like TweetDeck, Twitterific, Twhirl, Spaz, Blogo, Digsby, Opera, and more!

I suggest downloading "TweetDeck," which makes using Twitter as quick, easy, and user-friendly as AOL and AOL Instant Messenger. There you can "tweet" and "retweet" with one click! You can even make friend groups on TweetDeck for ease of reading, automatically shorten URLS using bit.ly, twurl, tinyurl, and more!

TweetDeck even integrates Facebook, so you can not only send and receive Facebook Status Updates using Twitter, but you can even chat with Facebook friends using your Twitter Account on TweetDeck!

You can choose by checking a "Facebook" box whether or not to send your tweets to Twitter!

TweetDeck also allows you to easily upload pictures using TwitPic! Which leads us to the next step!

Step 7: Sign up at TwitPic to post pictures on Twitter

If you are wondering how to post pictures on Twitter, you will be ecstatic to learn how easy it is!

First, go to TwitPic.Com and sign up using your Twitter username. TwitPic is very easy to use, but wait... it gets better!

Now that you have downloaded TweetDeck, you may automatically upload TwitPics using the "TwitPic" button on the righthand side of the TweetDeck Interface.

Step 8: How to Post Videos on Twitter

Using 12seconds.tv, you may post videos on Twitter directly from your mobile phone or TweetDeck.

To post videos longer than 12 seconds, upload to YouTube and "tweet" links. This is also a great way to get more YouTube subscribers and great exposure for your music, acting, and the like.

Step 9: How to Post Music on Twitter - "What is Music Monday?" Twt.fm has teamed up with Imeem.Com to bring you a quick and easy way to share music on Twitter!

Just go to Twt.fm! They make it very simple.

Anything on Imeem can be shared on Twitter - if you are a musician, simply sign up at Imeem and upload your songs in order to easily post them for the people of Twitterville.

Tweeters are encouraged to share music on Mondays in this manner. Tag your posts with the "#MusicMonday" hashtag.

Search for "MusicMonday" at Hashtags.org whenever you want to hear some great music that people on Twitter recommend!

Step 10: HAVE FUN!!

That's it! You're tweeting on Twitter!

Now I will answer some common Twitter questions I receive from friends and "twoobies" around the world.

Twitter FAQ

"Why are Twitter messages only 140 characters?"

Twitter messages are limited to 140 characters because this is the limit for most SMS Messaging ("Text" Messaging) capable mobile phones.

Twitter posts are meant to be short and sweet, which adds to the charm. Feel free to link to your blog if you would like to share a longer story.

"What is a 'Tiny URL' and why would I need to use that on Twitter?"

Since Twitter posts are limited to 140 characters, there are many resources currently available to shorten URLs so that you may point your followers to any site on the web regardless of the length of the original address.

Some Twitter Clients automatically shorten URLS, but you may also visit a website like http://bit.ly or http://tiny.cc for this service. Tiny.CC makes it easy for you to track hits for your shortened URLS on Twitter.

"How do I send a private message on Twitter?"

Simply type "d" followed by a space, then "@" and your friend's username, one more space, then your message!

example: "d @GossTV I really like your YouTube videos! What do you think of Susan Boyle?"

This will go directly into Twitter user @GossTV's direct message mailbox. Accessible from the web, mobile phone, or desktop application like TweetDeck, Twitter really is easier and quicker than email!

Unlike on MySpace, you cannot send a direct message on Twitter unless the user is following you.

This is good news for you, because it cuts down on spam immeasurably. If someone spams you, "unfollow" them.

"How do I see who isn't following me back?"

To see who isn't following you on Twitter, as well as who follows you without you following back, visit Friend or Follow at http://www.friendorfollow.com.

"What is the Public Timeline? Are my Twitter posts going to show up for the world to see?"

The Twitter Public Timeline (http://twitter.com/public_timeline) displays every new public post worldwide in real-time. This is a great way to see what the world is talking about and make new friends on Twitter.

If you would not like your posts to appear on the public timeline, simply mark your entries private.

"How do I make my Twitter posts private?"

To make all your Twitter posts private, click "Settings" at the top of your Twitter home page. In the "Account" tab (which will automatically open), check the box at the bottom that says, "Protect my updates."

"How do I gain followers on Twitter?"

To find friends on Twitter, visit Twello, the Twitter Yellow Pages and Twitter Directory, or use Hashtags and visit Hashtags.Org to find users with similar interests or senses of humor.

Thanks to @micah for creating #FollowFriday, you and your Twitter Followers are encouraged to share new tweeters amongst each other. I have found that the best way to make friends on Twitter is to be yourself, talk to people, and post amusing pictures and content.

Asking questions also helps gain followers, keep the ongoing conversation that is Twitter going, and build a community.

eample: "Who here thinks that Adam Lambert will beat Danny Gokey on American Idol? I like Allison Iraheta! #idol"

To sign up at Twello, the Twitter Directory, Twitter Search, and Twitter Yellow Pages, follow this URL: http://www.twello.com.

"What are StockTwits? I heard you can get stock information on Twitter."

According to StockTwits on their website, "StockTwits is an open, community-powered investment idea and information service. You can think of it as Bloomberg for the little guy and gal. Eavesdrop on what traders and investors are talking about RIGHT NOW or contribute to the conversation and build your reputation and following as a savvy market wizard."

Visit StockTwits on the web at http://www.stocktwits.com.

There you are! Everything you need to know about Twitter to get you started.

Keep your eyes and ears open! Twitter is still fairly new, and with its rapid growth, there will no doubt be many great additions to this free service.

Enjoy your time in Twitterville!

I hope you have enjoyed this guide to Twitter and the Twitterverse! If you have any more questions about Twitter, please feel free to ask me!

Follow me at http://www.twitter.com/marypascoe for all the latest tips, fun stuff, and more!

For more Twitter Help, visit Twitter Support on the web at http://help.twitter.com.

Fannie Mae expects housing starts to triple by 2013

2012-01-18T14:58:18.000Z

Fannie Mae: Housing starts to triple by 2013 to nearly 1.5 million

Wednesday, January 19th, 2011, 11:44 am

Despite the still fragile housing market, Fannie Mae expects housing starts to triple by 2013. According to the agency's economic outlook, housing starts are predicted to increase 17.3% and hit 710,000 this year, with another 47% increase to 1.1 million in 2012 and another gain of 42% in 2013 to nearly 1.5 million.

In 2010, there were about 510,000 housing starts. "We expect a small rise in home sales this year, but significant amounts of supply and shadow inventory of expected foreclosures will continue to hamper a robust housing picture for some time," said Doug Duncan, Fannie Mae's chief economist.

The government-sponsored enterprise projects total sales of new and existing homes to climb 4.5% in 2011 to 5.43 million, following an estimated decline of 6% for 2010 to about 5.2 million from 5.53 million for 2009. Mortgage originations will drop to $1.04 trillion this year from $1.53 trillion last year. Fannie Mae also expects mortgage rates will increase in 2011, but not substantially.

"Fixed mortgage rates are projected to rise throughout the year, but to remain below 5.5%," the report said. "Larger increases in mortgage rates without corresponding acceleration in job gains would pose a risk to the housing recovery."

The median new home price in 2011 is expected to drop, as is the median existing home sale price, down 2.1% to $214,500 and 2.1% to $167,900, respectively. Fannie Mae expects the U.S. economy to "accelerate and sustain" above-par and less volatile growth in 2011 based on increased consumer spending and growing clarity concerning fiscal policy. According to the agency's economic outlook, Fannie Mae anticipates the economy to grow by 3.6% this year with consumer and business spending leading the way.

This prediction was revised upward from 2.8% in December. "The economy has regained momentum entering 2011 and we see significant improvement in the economy's ability to grow compared to 2010," said Duncan.

Write to Christine Ricciardi.

Follow her on Twitter @HWnewbieCR.

Lure to Foreign Buyers: Buy a Home, Get a Visa? Where Foreign Investors Want to Buy

2012-01-16T02:10:59.000Z

Foreign Buyers See Big Bargains in U.S. Real Estate

Daily Real Estate News | Friday, January 13, 2012

When it comes to foreigners looking to plant roots in the United States, Florida is the hot spot, especially among Cubans, Haitians and Colombians.

Foreign investors are finding plenty of deals in the U.S. when it comes to real estate, and, as such, more international investors are flocking to key states to buy their piece of the American Dream.

The Sunshine State is the most popular among foreign home buyers with 31 percent of all home purchases made there coming from foreign residents, according to a study by Credit Sesame, an on-line credit and loan management firm, that used National Association of Realtors’ data.

Foreign buyers represented $82 billion of the U.S. real estate market in 2010, while in 2009 they represented only $66 billion.

Our neighbor to the South, Mexico, is the top country where foreigners come from to buy U.S. homes.

Mexico is the top country of origin for foreign buyers purchasing U.S. homes, according to a recent study by Credit Sesame, which used National Association of REALTORS® data for its findings.

“In this period of tremendous uncertainly globally, real estate here is a safe haven,” Susan Wachter, professor of real estate and finance at University of Pennsylvania, told MSNBC.com.

Home ownership seems to have become more important, or affordable, to foreign-born residents than U.S. citizens, according to the Credit Sesame report. “Nearly 80 percent of foreign-born U.S. residents owned a home in 2009, according to the National Association of Realtors.

The national home ownership rate at that time was 65.4 percent (it is currently 66.3 percent).”

The top destinations of foreign investors for U.S. real estate purchases are:

1. Florida: Thirty-one percent of all home purchases in that state are made by foreign buyers, with most coming from Cuba, Haiti, and Colombia.

2. California: 12 percent of all home purchases (most coming from Mexico, the Philippines, China, India, and Vietnam)

3. Texas: 9 percent of all home purchases (most coming from Mexico, India, Vietnam, China, and the Philippines)

“Housing is more affordable than ever,” said Susan Wachter, professor of real estate and finance at The Wharton School, University of Pennsylvania. “It’s difficult to get credit now but international investors come with cash.”

With immigrants and foreign business entities looking beyond the coasts, the opportunity to work with foreign buyers isn’t limited to certain markets or to practitioners who travel overseas. Here’s how to succeed.

A Promising Tool for Foreign Buyers

The 'Investment Visa' program offers total flexibility, but at a steep price.

May 2009 | By H. Ronald Klasko

If you have international customers who'd like to buy real estate and retire in the United States, you've probably already learned there's no visa option that specifically addresses their needs. Because of this, foreign nationals have long held back from buying real estate — the hurdles to obtaining permanent residency status are simply too great.

But for clients with the financial wherewithal, there is one viable option. It's called the Regional Center EB-5 Program, informally known as the investment visa. This federal initiative has actually been around since the 1990s, but because of administrative snags it was seriously underused until the U.S. Citizenship and Immigration Services (USCIS) made a concerted effort to improve implementation a couple of years ago.

The program is intended to attract foreign sources of capital into the United States for development projects that can provide employment for American workers.

It allows foreign nationals, whether they're working or not, to own property anywhere in the United States and to travel in and out of the country as they please, as well as obtain green cards for themselves, their spouse, and unmarried children under the age of 21.

1. Remember that foreign clients may know real estate but not U.S. real estate. You need to explain local market conditions and U.S. legal issues. But be careful not to talk down to them, cautions Gustavo Lumer, CIPS, CRS®, with Lumer Real Estate in North Miami Beach, Fla.

2. Focus on clients from one or two countries, especially when you’re just getting started, suggests Carmela Ma, CCIM, CIPS, president of CJM Associates Inc. in Beverly Hills, Calif. In that way, you can become more familiar with the culture and establish a wider network of contacts, more rapidly.

3. Recognize that factors such as currency fluctuations and a need for market stability may influence buying decisions, says Pius Leung, CCIM, CIPS, president of Charter Equity in Houston. Leung recalls a client who bought a building, left it vacant for three years, then sold it for about what he paid originally.

Yet, the client was happy because the currency in his home country had devalued by 50 percent over that period. So just by parking the money in the United States, the owner had made a profit, says Leung.

4. Take it slowly. Recognize that some cultures require more consultation and time to make a decision.

5. Develop a group of tax, legal, and other experts in foreign ownership of U.S. real estate you can offer foreign buyers as a resource, suggests Ma. Once you’re seen as a trusted adviser, offshore clients will often look to you for assistance in other parts of the transaction, such as finding legal advice.

Foreign home buyer, also see the United States as a good investment bet. “In this period of tremendous uncertainly globally, real estate here is a safe haven,” Susan Wachter, maintained.

Source: “Housing More Affordable Than Ever ... for Foreign Investors,” MSNBC.com (Jan. 13, 2012)

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7 Tips for Working With Foreign Real Estate Buyers

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A Collaborative Effort has Help Land a Federal Grant Linking Supportive Services for Persons with Disabilities.

2011-10-30T17:34:49.000Z

A New Grant For Persons with Disabilities in State of Texas

State housing, health agencies secure $330,000 grant increasing housing choices for persons with disabilities

(AUSTIN) — A collaborative effort between the Texas Department of Aging and Disability Services (DADS) and the Texas Department of Housing and Community Affairs (TDHCA) has helped the state land a $330,000 federal grant linking supportive services and affordable housing for persons with disabilities, making it possible to live a more independent life.

The U.S. Department of Health and Human Services, through its Centers for Medicare and Medicaid Services (CMS), yesterday announced that Texas was one of six states sharing $1.9 million in Real Choice System Change Grants, the application on which the two state agencies collaborated.

The Real Choice System Grant helps state health departments expand partnerships with their respective state housing agencies and develop long-term strategies to provide permanent and affordable rental housing for persons with disabilities.

The grant prioritizes persons that receive Medicaid services and will help to expand community based affordable housing choices for those currently living in institutional settings.

“This grant is an excellent example of an innovative and visionary partnership between two state agencies,” noted TDHCA Executive Director Tim Irvine. “It is the sort of cooperation and coordination which Texans should expect from their state government. But while we celebrate this award, let’s not lose sight of the fact that the most important aspect of our mutual success is that we will be creating opportunities to expand housing choices for persons with disabilities while ensuring they receive the critical supportive services they need to live independently.”

This week’s announcement further enhances the partnership between DADS, the state Medicaid agency, and TDHCA, and will provide the framework to increase housing choices for persons with disabilities with linkages to supportive services.

The CMS award, among other initiatives, will help create an online information clearinghouse to tie existing and future affordable housing units with available services for persons with disabilities, as well as funding a statewide partnership academy to educate developers of affordable housing and help service and housing providers link their programs.

The grant is also expected to help TDHCA apply for and access future HUD Section 811 Program funding soon available to state housing finance agencies. The new Section 811 funds will provide an innovative funding option for TDHCA to use project rental assistance in partnership with their existing affordable housing finance programs.

About the Texas Department of Housing and Community Affairs
The Texas Department of Housing and Community Affairs administers a number of state and federal programs through for-profit, nonprofit, and local government partnerships to strengthen communities through affordable housing development, home ownership opportunities, weatherization, and community-based services for Texans in need.

As of Oct. 31, according to the U.N. Population Fund, there will be 7 billion people sharing Earth's land and resources.

2011-10-18T17:00:00.000Z

World population nears 7 billion: Can we handle it?

By DAVID CRARY

updated 10/17/2011 9:22:58 AM ET

She's a 40-year-old mother of eight, with a ninth child due soon. The family homestead in a Burundi village is too small to provide enough food, and three of the children have quit school for lack of money to pay required fees.

"I regret to have made all those children," says Godelive Ndageramiwe. "If I were to start over, I would only make two or three."

At Ahmed Kasadha's prosperous farm in eastern Uganda, it's a different story.

"My father had 25 children — I have only 14 so far, and expect to produce more in the future," says Kasadha, who has two wives. He considers a large family a sign of success and a guarantee of support in his old age.

By the time Ndageramiwe's ninth child arrives, and any further members of the Kasadha clan, the world's population will have passed a momentous milestone. As of Oct. 31, according to the U.N. Population , there will be 7 billion people sharing Earth's land and resources.

In Western Europe, Japan and Russia, it will be an ironic milestone amid worries about low birthrates and aging populations. In China and India, the two most populous nations, it's an occasion to reassess policies that have already slowed once-rapid growth.

But in Burundi, Uganda and the rest of sub-Saharan Africa, the demographic news is mostly sobering as the region staggers under the double burden of the world's highest birthrates and deepest poverty. The regional population of nearly 900 million could reach 2 billion in 40 years at current rates, accounting for about half of the projected global population growth over that span.

"Most of that growth will be in Africa's cities, and in those cities it will almost all be in slums where living conditions are horrible," said John Bongaarts of the Population Council, a New York-based research organization.

Is catastrophe inevitable? Not necessarily. But experts say most of Africa — and other high-growth developing nations such as Afghanistan and Pakistan — will be hard-pressed to furnish enough food, water and jobs for their people, especially without major new family-planning initiatives.

PhotoBlog: World population set to exceed seven billion

"Extreme poverty and large families tend to reinforce each other," says Lester Brown, the environmental analyst who heads the Earth Policy Institute in Washington. "The challenge is to intervene in that cycle and accelerate the shift to smaller families."

Without such intervention, Brown says, food and water shortages could fuel political destabilization in developing regions.

"There's quite a bit of land that could produce food if we had the water to go with it," he said. "It's water that's becoming the real constraint."

The International Water Management Institute shares these concerns, predicting that by 2025 about 1.8 billion people will live in places suffering from severe water scarcity.

According to demographers, the world's population didn't reach 1 billion until 1804, and it took 123 years to hit the 2 billion mark in 1927. Then the pace accelerated — 3 billion in 1959, 4 billion in 1974, 5 billion in 1987, 6 billion in 1998.

Looking ahead, the U.N. projects that the world population will reach 8 billion by 2025, 10 billion by 2083. But the numbers could be much higher or lower, depending on such factors as access to birth control, infant mortality rates and average life expectancy — which has risen from 48 years in 1950 to 69 years today.

"Overall, this is not a cause for alarm — the world has absorbed big gains since 1950," said Bongaarts, a vice president of the Population Council. But he cautioned that strains are intensifying: rising energy and food prices, environmental stresses, more than 900 million people undernourished.

"For the rich, it's totally manageable," Bongaarts said. "It's the poor, everywhere, who will be hurt the most."

The executive director of the U.N. Population Fund, former Nigerian health minister Babatunde Osotimehin, describes the 7 billion milestone as a call to action — especially in the realm of enabling adolescent girls to stay in school and empowering women to control the number of children they have.

"It's an opportunity to bring the issues of population, women's rights and family planning back to center stage," he said in an interview. "There are 215 million women worldwide who need family planning and don't get it. If we can change that, and these women can take charge of their lives, we'll have a better world."

The Asian giants
It's 6 p.m. in Mumbai, India's financial hub, and millions of workers swarm out of their offices, headed to railway stations for a ride home. Every few minutes, as a train enters the station, the crowd surges forward.

For nearly 7 million commuters who ride the overtaxed suburban rail network each work day, every ride is a scramble. Each car is jam-packed; sometimes, riders die when they lose their foothold while clinging to the doors.

Across India, the teeming slums, congested streets, and crowded trains and trams are testimony to the country's burgeoning population. Already the second most populous country, with 1.2 billion people, India is expected to overtake China around 2030 when its population soars to an estimated 1.6 billion.

But even as the numbers increase, the pace of the growth has slowed. Demographers say India's fertility rate — now 2.6 children per woman — should fall to 2.1 by 2025 and to 1.8 by 2035.

More than half of India's population is under 25, and some policy planners say this so-called "youth dividend" could fuel a productive surge over the next few decades. But population experts caution that the

dividend could prove to be a liability without vast social investments.

"If the young population remains uneducated, unskilled and unemployable, then that dividend would be wasted," says Shereen Jejeebhoy, a Population Council demographer in New Delhi.

Population experts also worry about a growing gender gap, stemming largely from Indian families' preference for sons. A surge in sex-selection tests, resulting in abortion of female fetuses, has skewed the ratio, with the latest census showing 914 girls under age 6 for every 1,000 boys.

Family planning is a sensitive issue. In the 35 years since one government was toppled for pursuing an aggressive population control program, subsequent leaders have been reluctant to follow suit.

For now, China remains the most populous nation, with 1.34 billion people. In the past decade it added 73.9 million, more than the population of France or Thailand.

Nonetheless, its growth has slowed dramatically and the population is projected to start shrinking in 2027. By 2050, according to some demographers, it will be smaller than it is today.

"It's like a train on the track that's still moving but the engine is already off," says Gu Baochang, a professor of demography at Beijing's Renmin University.

In the 1970s, Chinese women had five to six children each on average. Today China has a fertility rate — the number of children the average woman is expected to have in her lifetime — of around 1.5, well below the 2.1 replacement rate that demographers say is needed to keep populations stable in developed countries.

Three decades of strict family planning rules that

limit urban families to one child and rural families to two helped China achieve a rapid decline in fertility but the policy has brought problems as well.

Before long, there will be too few young Chinese people to easily support a massive elderly population.

Also, as with India, there's a gender gap. The United Nations says there are 43 million "missing girls" in China because parents restricted to small families often favored sons and aborted girls after learning their unborn babies' gender through sonograms.

"China is always so proud of how quickly we brought down fertility from high to low, and how many births were avoided but I think we did it too quickly and reduced it to too low a level," says Gu. "I wish that India can learn this: 'Don't make it too quick.'"

Western Europe and U.S.
Spain used to give parents 2,500 euros (more than $3,000) for every newborn child to encourage families to reverse the country's low birth rate. But the checks stopped coming with Spain's austerity measures, raising the question of who will pay the bills to support the elderly in the years ahead.

It's a question bedeviling many European countries which have grappled for years over how to cope with shrinking birth rates and aging populations — and are now faced with a financial crisis that has forced some to cut back on family-friendly government incentives.

Spain and Italy, both forced to enact painful austerity measures in a bid to narrow budget deficits, are battling common problems: Women have chosen to have their first child at a later age, and the difficulties of finding jobs and affordable housing are discouraging some couples from having any children at all.

In 2010, for the fourth consecutive year, more Italians died than were born, according to the national statistics agency. Italy's population nonetheless grew slightly to 60.6 million due to , which is a highly charged issue across Europe.

Italy's youth minister Giorgia Meloni said earlier this year that measures to reverse the birth rate require "millions in investment" but that the resources aren't available.

Unlike many countries in Europe, France's population is growing slightly but steadily every year. It has one of the highest birth rates in the European Union with around 2 children per woman.

One reason is immigration to France by Africans with large-family traditions, but it's also due to family-friendly legislation. The government offers public preschools, subsidies to all families that have more than one child, generous maternity leave, and tax exemptions for employers of nannies.

Like France, the United States has one of the highest population growth rates among industrialized . Its fertility rate is just below the replacement rate of 2.1 children per woman, but its population has been increasing by almost 1 percent annually due to immigration. With 312 million people, the U.S. is the third most populous country after China and India.

Africa
Lagos, Nigeria, is expected to overtake Cairo soon as Africa's largest city. Private water vendors there do a brisk business in the many neighborhoods that otherwise lack access to potable water.

The drone of generators is omnipresent, at offices and markets, in neighborhoods rich and poor, because the power grid doesn't produce enough power. Periodic blackouts extend for hours, days, sometimes weeks.

Such is daily life in Nigeria's commercial capital, where the population is estimated at 15 million and growing at 6 percent or more each year. Problems with traffic congestion, sanitation and water supplies are staggering; a recent article in UN-Habitat said two-thirds of the residents live in poverty.

The rest of Nigeria isn't growing as fast — estimates of its growth rate range from 2 percent to 3.2 percent. But it's already Africa's most populous country with more than 160 million people.

Ndyanabangi Bannet, the U.N. Population Fund's deputy representative in Nigeria, notes that 60 percent of the population is under 30 and needs to be accommodated with education, training and health care.

"It is a plus if it is taken advantage of," he said of Nigeria's youth. "But if it is not harnessed, it can be a challenge, because imagine what hordes of unemployed young people can do."

In Uganda, another fast-growing country, President Yoweri used to be disdainful of population control and urged Ugandans, especially in rural areas, to continue having large families.

Recently, the government has conceded that its 3.2 population growth rate must be curbed because the economy can't keep pace. Earlier this year, anti-government protests by unemployed youths and other aggrieved Ugandans flared in several communities, and nine marchers were killed in confrontations with police.

"The government has been convinced that unless it invests in reproductive health, Uganda is destined to a crisis," says Hannington Burunde of the Uganda Population Secretariat.

Among those who are struggling is John Baliruno, 45, of Mpigi in central Uganda, a father of nine.

"I never intended to have such a big number," he said. "I with my wife had no knowledge of family planning and ended up producing one child after another. Now I cannot properly feed them."

Looking ahead, he's pessimistic.

"The environment is being destroyed by the growing population. Trees are being cut down in big numbers and even now we can't get enough firewood to cook food," he said. "In the near future, we will starve."

Another of the fastest-growing countries is Burundi. With roughly 8.6 million people, it's the second most densely populated African country after neighboring Rwanda.

Omer Ndayishimiye, head of Burundi's Population Department, said continued high growth coincides with dwindling natural resources. Land suitable for farming will decline, and poverty will be rampant, he said, noting that 90 percent of the population live in rural areas and rely on farming to survive.

The government has been trying to raise awareness about the demographic challenges among the clergy, civic leaders and the general public.

"We are suggesting couples to go to health clinics to get taught different birth control methods," Ndayishimiye said. "But we are facing some barriers ... Many Burundians still see children as source of wealth."

At her modest house in Gishubi, Godelive Ndageramiwe ponders the changes that have made her regret her large family.

"Children were a good labor force in the past when there was enough space to cultivate," she said. "Today I can't even feed my family properly. My kids just spend days doing nothing."

After her fourth child, she began to worry how her family could be cared for.

"But my husband was against birth control and wanted as many children as possible," she said. "It was delicate because he could marry another wife.

"My friends advised me to go to a nearby clinic, but I was told I must come with my husband. Now I have laid the issue in the hands of God."

___

David Crary reported from New York. Associated Press writers Alexa Oleson in Beijing, Nirmala George in New Delhi, Angela Charlton in Paris, Daniel Woolls in Madrid, Victor Simpson in Rome, Onesime Niyungeko in Bujumbura, Burundi; Yinka Ibukun in Lagos, Nigeria, and Godfrey Olukya in Kampala, Uganda, also contributed to this report.

Consumer Spending is up in December

2011-01-31T18:00:00.000Z

Consumer spending up 0.7 percent in December

WASHINGTON – Americans spent at the fastest pace in three years in 2010, boosted by a strong finish in December.

Consumer spending rose 0.7 percent in December, the sixth straight monthly increase, the Commerce Department reported Monday. Households saw their incomes rise 0.4 percent, the same as November.

For all of 2010, consumers boosted spending 3.5 percent. That was the best performance since a 5.2 percent rise in 2007, before the recession began.

The government reported Friday that consumer spending rose at a 4.4 percent rate in the final three months of 2010 — the most since 2006 and helping retailers to the best holiday shopping season in that time.

Economists expect a cut in Social Security taxes will lift January's spending and incomes even further that last month.

But Paul Dales, senior U.S. economist at Capital Economics, said the boost could be short-lived without job growth.

For 2010, incomes rose 3 percent after having fallen 1.7 percent in 2009. Still, incomes grew at the second-lowest annual pace in the eight years.

The rise in incomes and the faster increase in spending meant that the savings rate dipped slightly in December to 5.3 percent of after-tax incomes.

The savings rate edged down slightly to 5.8 percent, from 5.9 percent in 2009. Still the 2010 figure is well above the low of 1.4 percent hit in 2005 at the height of the housing boom when rising home prices encouraged Americans to spend more.

The December spending gain was powered by a 1.5 percent rise in purchases of nondurable goods, such as clothing and food. Consumers boosted their spending 0.7 percent on long-lasting products such as autos and appliances. Spending on services rose 0.4 percent.

The increased economic activity is not leading to higher inflation. A price gauge tied to consumer spending showed prices outside of food and energy increased 0.7 percent in the 12 months ending in December, a record low.

Economists expect a slowly improving job market and a payroll tax cut will boost spending further in 2011.

The big question is whether the gains in consumer spending will be enough to offset weakness in the housing market and further cutbacks in government spending.

For all of 2010, the economy grew 2.9 percent, the best performance since 2005. That's a sharp contrast to the 2.6 percent drop in GDP in 2009, the worst decline in more than 60 years.

How FHA and VA Loans Affect Your Offer

2011-01-26T14:38:41.000Z

How FHA and VA Loans Affect Your Offer

If you are obtaining a VA or FHA loan in order to finance your purchase, you must include that information in your offer. This is because government loans place additional financial and performance obligations on the seller.

Non-Allowable Fees

First, VA and FHA loans prohibit buyers from paying certain types of fees that are often charged by lenders, escrow companies, settlement agents, and title companies. They are called "non-allowable" fees. They still get charged anyway, but as the buyer, you are "not allowed" to pay them. The result is that the seller ends up paying them instead of you.

Most of these "non-allowable" fees come from your lender. By the time you are making an offer you should have already been pre-qualified by a loan officer, so you or your real estate agent can ask how much the lender’s non-allowable fees will be. Experienced agents should also have an idea of what non-allowable fees will be charged by the escrow or settlement agent and the title insurance company.

Since these are fees the seller would not pay on an offer with conventional financing, this information must be included in your offer. You should also realize that since the seller will be paying these additional fees, they may be a little less negotiable on the price.

VA and FHA Appraisals

Home appraisal inspections on FHA and VA loans are a little more detailed than on conventional loans (and more expensive). The appraisers are required to perform certain minimum inspections as well as evaluate the market value of the property. Although these inspections are not as detailed as a professional home inspection and should not be considered a substitute, sometimes repairs are required.

These are additional costs the seller would not be obligated to pay for someone obtaining conventional financing, so your offer should include a maximum figure for these repairs. Otherwise the seller is signing the equivalent of a blank check, and they do not want to do that.

At the same time, whatever figure you put in will most likely affect the seller’s willingness to negotiate on price. If you put $500 as an estimate, the seller may be $500 less negotiable on their price. If no repairs are required, you may have been able to get the house for $500 less than what you and the seller agreed on as the price. The solution is to add a clause to your offer that goes something like this. "If required repairs cost less than the maximum amount allowed, the excess will be credited toward buyer’s closing costs."

Why Network? The Necessity of Social Networking

2011-01-23T19:00:00.000Z

Ever stopped to think about why social networking is important?

Wonder how social networking can help you?

As a small business, your number one priority needs to be getting your business name out there and on the tongues of a lot of people. Small businesses have it hard because they don't have the brand that people recognize and therefore have to work hard to establish that brand.

"Connectivism is, by contrast, 'connectionist'. Knowledge is, on this theory, literally the set of connections formed by actions and experience."

Stephen Downes also highlights in the post on What is Connectivism.

"Connections form naturally, through a process of association, and are not 'constructed' through some sort of intentional action." S. Downes

The Necessity of Social Networking

You ever hear this before ? From people, when a conversation about Social Media comes up?

Regarding social networking, something that is commonly heard is " I am on facebook, that is enough for me"! or "That's such a waste of time, or I do not have the time, to busy with other things."

Answer: Yes, Absolutely.

A few reasons as to why participating in the online world via sites such as Twitter, LinkedIn, and Facebook is worth your time.

It will make you more visible, engaging, and relevant in your profession.

"Connectivism finds its roots in the climate of abundance, rapid change, diverse information sources and perspectives, and the critical need to find a way to filter and make sense of the chaos."

Some reasons to consider why Social networking is worth your time:

1. Recognition ( it is free exposure)

There are many ways to get your name out there and most of them cost money. Why not take advantage of the many Social Networking Tools to connect with other business professionals, clients and future costumers, that will not cost you anything but a little bit of time.

2. Resources

Social networking sites can be wonderful places to learn and find solutions to problem, And who knows? You could be a great resource for someone else. You can become an adovacate, to share revelant information or to interact with others with common interest.

3. Referrals

To survive long term as a small business person, is by referrals, word of mouth advertising. Your pipe line of business contacts, to refer people to you, you become that go too person.

By building relationships online, you share friendly acknowledgments, an unspoken understanding that we shared a common interest. You build credibility, revelancy and you state your core intent of why you do what you do.

Nicholas Christakis shares the insights he gained through the study of social networks:

- Networks have values – and there are different kinds of social values associated with learning through social networks.

In order words, the more active or engaged you are in the social networks, the more likely you would influence others In or be influenced by others in the networks or communities.

- How you participate in the network, would have different impact on your learning or your level of connectivity.

- The ties between people matter - that means that strong or weak ties with connections amongst people in the networks do affect the sort of learning of individuals and the networks

Ties do matter in learning, and so could impact on the sort of learning each of the participants are expecting and experiencing in networks.

- Spread of good and valuable things in social networks matters – so the spreading of happiness and altruism are important in social networks.

- The importance of learning lies with the connections. - and that we must stay current with up-to-date information.

Connections matters. By studying social networks, we could have a better understanding about how emotions are shared or spread in social networks.

“the more you get involved, engaged with others in your networks through participation or contribution, the more likely you would get what you want”. N Christakis

In Summary, If you want to get your name out there, then the best way to do that is through social networking sites

The Internet has changed the way we communicate with people in an amazing way. We went from sending messages via “snail mail”, to telephones, and so forth. Today, we use Computers, handheld devices, Ipods, Skype,,Tablets.

For instance, a major milestone was the invention of emailing, which rose up in the early 90’s. Soon after came Instant Messaging and chat rooms. Today we have things like Twitter, Facebook, FriendFeed, YouTube and much, much more!

Abundance And Diversity

How about your experience with connections?

These Social Networks Communities allow you to interact with real people on a real level, and the majority of them out there are free.

The information climate of continual and ongoing change raises the importance of being continually current.

As it has been stated, “more is different”. The “more” of information and technology today, and the need to stay current, forms the climate that gives roots to connectivism.

Tune up your social media presence

2011-01-16T17:30:00.000Z

Tune up your social media presence

Having right policies, voice is key, say experts

By Glenn Roberts Jr., Friday, January 14, 2011.

NEW YORK -- Michael McClure, CEO for Professional One Real Estate in Plymouth, Mich., said he has transitioned from a "Twitter hater" and a "Facebook hater" to something else: "a social marketing addict."

McClure, who participated in a "Social Media Marketing Wake-Up Call" panel Wednesday at the Real Estate Connect conference, said, "I just genuinely enjoy (social media).

"It has created more opportunities for my company and my business than all of the traditional methods and means that I had been using before that," he added. "Without social media giving me a voice and an opportunity to connect with people, I just wouldn't have all those opportunities I do."

In the past year and a half, McClure said he tweeted about 30,000 times.

And he has been impressed at how real relationships can be built via social media. When he met some acquaintances in person who he had previously only known via social media, "the realness of social media hit home for me," McClure said.

"Instead of getting a handshake, I got a hug. It just creates legitimate relationships."

Social media is useful for the "humanization of a brand," he said.

And because social media posts by individuals can reflect on a real estate brand, it's important for brokerages and franchise companies to establish some guidelines for social media participation, said McClure and other panelists.

He said he has read posts from "agents who say things that -- if I was that agent's broker -- I would fire (them) on the spot. I think you have to articulate a policy, then you have to disseminate a policy to the organization."

Agents need to be mindful of client confidentiality when they're participating in social media, he also said.

And it's hard to take back something you say on the Internet.

"Even though you may delete something, it's out there and you said it," said Matthew Shadbolt, director of Internet marketing for The Corcoran Group.

Another panelist, Marnie Blanco, vice president of e-business for global real estate franchisor Re/Max International, said her company is too massive to "police all of our agents, but we find that our agents will police themselves."

And the company does have a policy and recommends best practices in social media participation.

"The conversation ... you have with your agents -- (they) need to be reminded, 'Your name is your brand as an agent.' "

Shadbolt said brokers need to be especially watchful for agent posts that run afoul of fair housing laws, offering the example of an agent who suggests that a particular housing unit is "perfect for a single student at NYU."

"There are actually some legal ramifications for distributing that sort of stuff," he said.

Another concern: Is social media just a time sink for some agents?

"You could be that agent who has 10,000 Twitter followers but no sales. We're seeing much more of that. It's actually kind of worrying because people are hemorrhaging their time in the wrong place," Shadbolt said.

And though there is "an astronomical kind of momentum" behind social media platforms, with massive audiences, a company's social media posts can be a waste of resources if they don't come from a business perspective, Shadbolt said.

Even so, it's difficult to measure the monetary value of a company's social media participation.

"It doesn't mean anything in terms of dollars. It means a lot in terms of relationship and brand reach, which we believe there's a really great value to," Shadbolt said.

He also said that Facebook "fan" pages are wrongheaded for most agents and better suit brokerages and real estate companies.

And having a consistent social media voice is important, he also said. "It's a DNA issue and you've got to find the right person."

Contact Glenn Roberts Jr.:
E-mail

Motivated Agents Seek Purpose

2011-01-12T21:15:16.000Z

Motivated Agents Seek Purpose

by Bob Hunt

We have been examining the ideas in Daniel Pink's book, "Drive", because it is a book about motivation. To say that the topic of motivation is important to real estate companies, brokers, managers, and agents would be a massive understatement.

The amount of money spent by those entities on motivational programs, seminars, books, and tapes probably totals in the millions. People in the real estate business – especially owners and brokers – could do well to reflect on the ideas in "Drive"

Pink refers to types of motivations as human "operating systems". The elemental 1.0 was all about survival. Its successor, Motivation 2.0 is built around external rewards and punishments. Motivation 2.0 works just fine for the kind of work that is routine, repetitive, or reducible to a set of rules – the kind of work that has been automated or outsourced. But Motivation 2.0 doesn't work very well for work that calls for creativity and novel problem solving. Which is to say, it doesn't work very well in a real estate brokerage setting.

Pink introduces the idea of Motivation 3.0 –intrinsic motivation – which is made up of three elements:

Autonomy – the desire to direct our own lives;
Mastery – the urge to get better and better at something that matters; and
Purpose – the desire to be a part of something that is worthwhile and larger than ourselves. Earlier we discussed the ways in which autonomy and mastery might be engendered in a real estate setting. Today we turn to the topic of purpose -- and speak primarily to owners and brokers.

Pink writes this: "Humans, by their nature, seek purpose – a cause greater and more enduring than themselves. But traditional businesses have long considered purpose ornamental – a perfectly nice accessory, so long as it didn't get in the way of the important things. But that's changing … In Motivation 3.0, purpose maximization is taking its place alongside profit maximization as an aspiration and a guiding principle."

How might this apply to a real estate business?

It is true that many, many real estate companies support and involve themselves with a number of good causes and charities. What is also true, though, is that such activities may frequently be one-time-only, seasonal, and/or generally disconnected from the on-going activities of the company.

This is not to denigrate the time, effort, and money that may go into such activities, for they are indeed commendable. But, it is to suggest that a company that seeks to encourage intrinsically motivated agents is one for whom socially beneficial activities are not just an "ornament" but are an integral part of a company's purpose.

Do you want agents who are motivated? Then give them an opportunity in their work to be a part of something larger than themselves. But, of course, to do that you – your company – must be a part of that something too.

None of this suggests that you become a non-profit! Of course you need and want to make a profit. So, presumably, do your agents. But, take seriously what Pink says: "A healthy society – and healthy business organizations – begins with a purpose and considers profit a way to move toward that end or a happy by-product of its attainment." Profit is not the end in itself; it is a means to an end.

If an agent is to feel that he or she is really a part of a company that has a purpose beyond profit, then give the agent an opportunity to participate in the accomplishment of that purpose. Suppose, for example, that the company gives n% of its profit (or a specific dollar amount) to the ABC charity, you might give agents the opportunity to direct certain amounts from their commissions (even from the company split!) to that same charity.

Don't know what charity or good cause to support? Solicit input from your agents. Indeed, do that first. After all, they are the ones who will generate the income to fund it.

Finally, assuming you are a company that has made a worthwhile purpose an integral part of its operations, if you want motivated agents, then work hard to make them feel they are a part of the company.

What you say and how you say it are beyond measure. Pink speaks of "the simple and effective way Robert B. Reich, former U.S. labor secretary, gauges the health of an organization. He calls it the 'pronoun test.'

When he visits a workplace, he'll ask the people employed there some questions about the company. He listens to the substance of their response, of course.

But most of all, he listens for the pronouns they use. Do the workers refer to the company as 'they'? Or do they describe in terms of 'we'? 'They' companies and 'we' companies, he says, are very different places. And in Motivation 3.0, 'we' wins." Number 3 in a series of 3.

Published: January 11, 2011

San Antonio, Texas Becoming An Urban Destination

2010-11-07T00:44:59.000Z

Making San Antonio More Urban

Sure, demographic and social trends might propel more people to both live and work downtown — eventually. But what about right now?

The Downtown Alliance will hold its annual State of Downtown luncheon
Tuesday to talk about the nitty-gritty data, such as the number of
residents, occupancy rates, rent prices per square foot and the state of
the hotel industry, but also will touch on where San Antonio is in
terms of making downtown a better place to live, work and visit.

Ben Brewer, president of the Downtown Alliance, said the idea is to make
downtown, along with other areas of San Antonio, more walkable and
neighborly, so there aren't just “people communicating with their thumbs
on their phones.”

“It really boils down to quality of life,” Brewer said.

The luncheon also should touch on why anyone who doesn't live, want to live
or plan to live downtown should care about San Antonio's urban core.

Christopher Leinberger, a visiting fellow at the Brookings Institution and a
developer, recently published a paper in the Washington Monthly about
how improving downtown areas and creating urban communities could help
drag real estate out of the recession.

“It's nothing to do with a city versus suburb,” Leinberger said. “We've overbuilt fringe, drivable suburban housing.”

Now Leinberger said there's a shortage of the kind of urban, walkable
communities that baby boomers and their children are demanding. “It
could be in downtown or the suburbs,” he said.

The idea is to have cities where people hardly have to drive if they live downtown, or
where they can reduce their commuting and aggravation time if they live
in the suburbs.

Christine Drennon, a Trinity University professor of urban studies, said suburban development traditionally has
been incentivized, but there should be an emphasis on encouraging urban
development.

“It was public policy and economic incentives that together helped incentivize a particular urban pattern,” she said. “We can
change that so quickly.

n addition to things such as rail lines, Leinberger said more rental apartments and moderately priced
condos or townhomes are needed in downtown areas to meet the needs of
the 20- and 30-somethings and boomers who want to live there.

“The market is demanding something more modest,” Leinberger said. “The luxury
product tends to be concrete and steel and very expensive to build.
What the market wants is stick-built, high-density product. The
developers will figure it out.”

Likewise, David Adelman of Cross & Co., one of the speakers at Tuesday's luncheon, said the biggest
opportunities downtown are for developers to cater to more moderately
priced rental and for-sale housing.

“There's a lot of opportunity and a lot of momentum building,” Adelman said. “Clearly, the top end of the
range is not moving. The lower end is moving.”

The State of Downtown luncheon will be held at the Westin Riverwalk Hotel, part of
the Downtown Alliance's Urban Renaissance series.

Speakers include Russell Noll of Transwestern; Mike Sawaya, the city's director
of Convention Sports and Entertainment Facilities; and Adelman.
Leinberger's paper, authored with Patrick Doherty, will be passed out to
the audience.

By Jennifer Hiller

- Express-News

Analysts expect other lenders to correct problems with the way they handled documents

2010-10-19T03:59:42.000Z

Bank of America starts thaw in foreclosure freeze

By ALAN ZIBEL, AP

Real Estate Writer Alan Zibel, Ap Real Estate Writer – 1 hr 12 mins ago

WASHINGTON – The pace of U.S. home foreclosures may not slow much after all.

Bank of America said Monday that it plans to resume seizing more than 100,000 homes in 23 states next week. It said it has a legal right to foreclose despite accusations that documents used in the process were flawed.

Ally Financial Inc's GMAC Mortgage unit is also resuming foreclosures once documents are fixed. Gina Proia, a spokeswoman for Ally, said that "as we review the affected files and take any remediation needed, the foreclosure process then resumes."

Analysts expect other lenders to correct problems with the way they handled documents and proceed with a wave of foreclosures that have depressed the housing market.

They are likely to follow because foreclosure practices were similar from bank to bank, said banking analyst Nancy Bush of NAB Research.

"We'll be back to square one by the end of the year," she said.

The bank's move could mean that the costs of the foreclosure-document mess will wind up being less than some investors had feared just days ago.

Bank shares sank last week after JPMorgan Chase & Co. said it set aside $1.3 billion in the third quarter to cover legal expenses that include the foreclosure document problems.

Shares of Charlotte, N.C.-based Bank of America had been flat earlier Monday but jumped on the news.

They rose 36 cents, or 3 percent, to close at $12.34.

Bank of America Corp. said it's confident of its foreclosure decisions. The bank is still delaying foreclosures in the 27 states that don't require a judge's approval. It said it's still reviewing its cases in those states.

The bank's move comes two weeks after it began halting foreclosures nationwide amid allegations that bank employees signed but didn't read documents that may have contained errors.

These employees have earned the nickname "robo-signers."

The company said it plans to resubmit documents with new signatures in the 23 states that require judicial authorization to restart the foreclosure process. It will delay fewer than 30,000 foreclosures.

"The basis for our foreclosure decisions is accurate," Dan Frahm, a Bank of America spokesman, said in announcing the bank's new approach.

Bank of America had been the only lender to halt foreclosures in all 50 states. Other companies, including Ally Financial Inc.'s GMAC Mortgage unit, PNC Financial Services Inc. and JPMorgan, have halted tens of thousands of foreclosures after similar practices became public.

Analysts at FBR Capital Markets said in a note to clients that the bank's announcement demonstrates that the foreclosure document issue may be "overblown."

Still, more problems surfaced Monday that suggest the controversy may be far from over.

A deposition released by the Florida attorney general's office revealed that the office manager at a Florida law firm under investigation for fabricating foreclosure documents signed 1,000 files a day without reviewing them.

The manager also would allow paralegals to sign her name for her when she got tired, the deposition said.

Cheryl Salmons, office manager at the Law Offices of David Stern, would sign 500 files in the morning and another 500 files in the afternoon without reviewing them and with no witnesses, former assistant Kelly Scott said in a deposition released by the Florida attorney general's office.

Jeffrey Tew, an attorney for Stern's firm, didn't immediately return a phone call.

Government-controlled mortgage buyers Fannie Mae and Freddie Mac have stopped referring foreclosures to Stern's firm while they review the firm's filings.

In some states, lenders can foreclose quickly on delinquent mortgage borrowers. By contrast, the 23 states in which Bank of America is restarting foreclosures use a lengthy court process.

They require documents to verify information on the mortgage, including who owns it.

Those states are:

Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota,Vermont and Wisconsin.

Tax Incentives Benefit Younger Households

2010-10-17T20:04:33.000Z

These Findings Could Affect How Tax Codes Can Change

by Carla Hill

These findings could affect how tax codes changes are proposed in coming years, as an ailing housing market needs first-time and Generation Y homebuyers to enter the market.

These tax advantages, along with more affordable pricing and historically low interest rates are even more reason that new buyers should consider entering the market at this time.

Published: October 13, 2010

Aspire To Thrival To Capitalize On Any Market Conditions

2010-05-03T14:30:00.000Z

Aspire to "Thrival" to Capitalize on Any Market Conditions

by Peter L. Mosca

Note: To follow is Part 2 of a radio show interview conducted by Peter L. Mosca, host of Income Property Investment Talk dot com, with Frank McKinney, author of "Burst This! Frank McKinney's Bubble-Proof Real Estate Strategies," and, during his 25-year career, not only survived but thrived by taking a contrarian approach and making his own markets.

To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/031710. To see part I of this interview, plesase click here]

Mosca: You mention in your book "it's a right that must be earned responsibly. It's not an entitlement." You also go on to further state that the starter home is a big part of that American dream and it's a big part of keeping this blue chip investment moving forward.

McKinney: Nobody wants to rent the American dream. That's not what we're here for. Income property is wonderful and obviously in many places in the country holding onto income property because people need a place to live and are afraid to buy and have lost their homes or what have you, that's a great investment, but I'm not going to speak to that today.

I'm going to speak to the fact that nobody, if you are ready and I do say that you need to be responsibly ready to own the American dream; nobody if they are ready wants to rent it.

So, why not provide that ability to, if you are in the business or thinking about getting into the business, to provide that to your clients, your customers. If you are not in the business and you just want to buy your own first time single family home, your own home right now, do you think that you are ever going to see a tax credit like that that's out there today?

You will not see 5% interest rates. I remember when the market was humming back in the late '90s, early 2000 and interest rates were just below 9%, 9 to 10%. That was considered pretty good and now we are half that.

Think of the entire stimulus that's out there and as the economy starts to improve that's going to be removed. Also, think about the accountability the banks are going to be held to because they have been recipients of that stimulus, and they must get that money to work.

They also must purge their books of all this real estate owned, all the foreclosed properties. Once those are gone, you're not going to have an opportunity commercial, residential, industrial, or otherwise to buy like you can buy today.

Mosca: This leads nicely to a section in Chapter 2 you title "Take off the Rose Colored Glasses and Plant a Rose Garden." One of the things you talk about is a risk continuum. Do you want to talk a little bit about that risk continuum and what that means for the investor?

McKinney: It's not just the investor. It's life. The risk continuum is a very simple exercise. You take a piece of paper and you draw a straight line on it. On the right hand side you put a hash mark and it says "daredevil" and on the other end you put a "phobic."

Hold that up next to your face in the mirror and ask yourself the question, "where do you fall?" In all likelihood, where you fall in business as far as taking risk will be where you fall in life. There's no bifurcation there. What I am encouraging you to do in that very first section of the book is to exercise that risk threshold like a muscle. It will become stronger like a muscle, eventually it will become stronger and it will be able to withstand greater pressure. In my career, I didn't start by making $25 million spec homes.

I started by building $49,000 or renovating $49,000 crack houses and turning them into really nice houses on the block when I got done with them and selling them to people who wanted to own the American dream. Slowly but surely, exercising that risk threshold to where I am today, I know no other way. I have a full head of hair; I get a full 8 hours of sleep at night because I have chosen to very slowly exercise that risk threshold like a muscle. You can't do that though until you take that risk continuum, you put a hash mark on that line somewhere where you think you fall.

Take it to somebody you love, who you trust and say am I telling the truth to myself? Am I more like the phobic who is afraid to get out of bed in the morning because the ground is too cold or am I more like the daredevil who has no real regard for his or her life? We need to exercise that risk threshold like a muscle. Eventually it does become stronger and able to withstand greater pressure.

Mosca: This leads us to something that you note in your book, the terms "capitulation" and "irrational exuberance." Can you talk a little bit about that and how it plays into the mindset of who you are and your risk tolerance levels?

McKinney: It's too bad that we don't spend enough time in the center of the road. It's either "capitulation" which is defined by throwing in the towel, the white towel splattered with your own blood. I give up. I'll have nothing to do with this. I'm going back to work at a company. I'm not going to take any risk anymore.

I've shed enough blood. On the very far other end is the "irrational exuberance" which is my uncle's sister's nephew made $50,000 by flipping a condo in San Diego four years ago and I should be able to do that. That's the heard mentality. That's the mentality that got us into a lot of trouble when it came to the creation of these esoteric mortgage products which basically said that the $300,000 home buyer were buying $600,000 homes that they had no business being in. That's all about irrational exuberance.

The only people in this country that should be putting nothing down are the veterans who are entitled to a VA loan. When it comes to our credit cards or even our mortgages, this awakening that we have been through over the last two years, look at the savings in this country. It's up. It's been up for the last 7 months. The media spins that and says the consumer is dead. The consumer is not spending. I say that's good news.

We had a negative savings rate for over 2 years in this country. How do you do that? How do you have a bank account that has a negative? There's only one way. That's to have credit card balances. That behavior had to stop and if you haven't stopped it personally, you need to stop it because you can't build credit worthiness by overextension.

Then we get irresponsible debt and there is a chapter in the book that talks about debt being a four-letter word. I get into great detail about what debt did to us as consumers and what debt did to us as a country but how to responsibly manage debt, now we are talking about making money.

Mosca: Can you talk a little bit about creating your own market and how important that is especially in situations or in challenging markets like we are in today?

McKinney: It is true that we tend to use the TV to gain our financial literacy. That is sad. We tend to use the blame game. It's the mortgage company's fault, it's the hedge fund's fault, it's the government's fault for bursting our bubble, and it's none of those.

Don't put the blame anywhere else. That chapter puts the blame or I should say puts the opportunity squarely on us. Bubbles are self-created. They truly are. If you follow the formula of what you pay for the opportunity plus your improvement costs should equal no more than and I say in any market, 65% of retail even if retail is a moving target, you will never create a bubble situation for yourself.

That's a very short explanation to a long approach. You make money in real estate the day you buy it, not the day you sell it. We are going to have regrets in life. Right? We all have them, but let's regret what we did not what we didn't do. In this case, look at the crystal ball 5 years from now.

You will regret not taking some form of investment action versus taking it. I can't say that with 100% certainty, but I bet 9 out of 10 people if they don't take the action will regret not doing so.

Mosca: Is it a good idea to go out and talk to peers, go out and learn from other investors on programs like this and various other ways to secure that information and do better in terms of your investing?

McKinney: When you look at the cover of the book "Burst This!" if you're the pessimist, if you are the one overcome by fear on a regular basis, you'll see what I am holding in my hand as a bubble. For those who see it as opportunity it is two things.

It is a crystal ball that you can look into and predict with some certainty how your investments are going to turn out by using the knowledge that I share after 25 years being in the market in my book. It's also a protective force field. You can insulate your investments from the inherent cycles because they will present themselves again.

They tend to come by the way about every 6 years is what I learned over the last 6 cycles. They present themselves. How long do they last? How long do we skip across the bottom? Now that we seem to be coming out the back end very slowly, it's almost like taking a rock and skipping it across a lake.

We are going to be bouncing across the bottom here for a bit. Just like using our Microsoft analogy, you couldn't call that stock at $10.You are a fool to try to buy it at the absolute bottom, nobody can do that. You give up maybe 5% on the downside for 25% on the upside.

That's where we are at right now. SO if you've got the intestinal fortitude to handle another 5% downturn, which I can't imagine there is a geographic region in this country that's going to see more than 5% property value depreciation, now is the time to get in.

Mosca: International investors have been coming into this country and investing in our real estate now for 12 to 18 months. That's a sign that says to me they see that we've hit that bottom, right?

McKinney: Yes, no doubt. It is currency driven but at the same time it's opportunity driven. There was a piece that 20/20 did on a house that we were building. I use it in our intro when I go to give talks. It's Martin Basheer interviewing me here in South Florida and he was talking about the bubble bursting. I don't put a date on that. It was 2006. So, eventually the media is going to be right and the bubble did for the most part did burst, but after that piece, it took 2 ½ years.

Just like the media now says there are going to be more foreclosures, there are always more foreclosures. There are always going to be foreclosures. That's good. That's an opportunity for you to get out there and make a deal. It's not going to stop. Job loses, that's something we've got to keep our eyes on. That is starting to ebb. It's not turning around and we are not adding jobs but if you've waited for that you've waited too long. It does take some risk, some ability to believe through looking at that crystal ball that things are going to get better.

We are not talking about going out and buying 100 properties here. I'm talking to the investor who wants to buy one and one right. Now is the time to go out and you have to have thick skin when it comes to making ridiculously low offers if you are on the buy side. I remember back when I got started, for every 40 offers I made, I got one because I learned when you make money, the day you buy not the day you sell. If I bought it right, I can withstand this little 5% correction if that's what we're going to have.

I can withstand over-improving a little. I can withstand carrying the property a little bit longer. So, today you go out, you make that purchase, you improve it right if you are going to rent it fine, if you are going to sell it but boy oh boy I know we are beating this up but just don't miss these opportunities. I can't tell you that how many thousands of pages I researched in these 6 cycles, I've never seen days like today, these opportunistic times.

Mosca: How does one create a unique value proposition as an investor as it relates to marketing?

McKinney: We could spend a whole hour on marketing. If you buy it right, you can fix it up right, but if you can't sell it or rent it, you're dead. That's why that section of the book is the longest. About 50,000 people out of the 6.5 billion could afford what I do for a living. That's how infinitesimally small my market is. I better know something about how to market to those people. Two things I want to talk about.

The first is what I refer to in the book as "the grade school compass approach to marketing promotion and sales." It's a very simple concept. You take that grade school compass, you stick it into your product, in this case your piece of real estate, right in the dead center, and you start to draw these ever widening circles designed like a black hole to draw your customers, your clients, your buyers in. The first circle, what do you do on site, on site, within the four corners of your property to market? I don't have time to get in to all of the applications.

From on site, we move to event. What event driven marketing do you do? It's a bigger circle because it captures more people. Next is print. Print is not dead. What do you do in the form of print to market your property? It's an even wider circle because it draws in more people. Next circle is web, very important. What do you do for web advertising, Internet marketing, to draw your customers? By the way, if I had a dollar spent on marketing, I would spend it there.

The last circle, which is the broadest, which has the most impactful reach, is media. Getting on 20/20 or I was on Oprah twice and we just did HGTV and the Travel Channel. Those were three things and it cost me nothing. Imagine the brand that we created and the buyers that we've driven based upon those appearances.

So, in the grade school compass approach there are 135 different marketing initiatives, I know that sounds like a lot, that I touch on every single week, from the signs on my property to make sure they are the right size, they don't rust and they are reflective all the way on how do we get back on Oprah.

If you don't pay hypertension to those details, you might do well buying and fixing it up but you are never going to move it. You're never going to create that personal brand. That's critical.

Mosca: Video is a powerful marketing tool today, isn't it?

McKinney: A quick story about video. For a $30 million spec home I built five years ago I did a professionally done video and put it on the website.

A guy in New York took the tour and was so impressed he got on his gulfstream jet, flew down to see if the video was representative of what Frank really did in the house. He flew down on a Tuesday and he was sleeping there. Closed deal, no inspections on Friday. Now if that's not a powerful testimony for video. It is one of the most important marketing aspects one can undertake.

Mosca: What is the next killer app in real estate?

McKinney: We've heard in technology terms the killer app, so it is a new operating system from Microsoft. It's a new computer from Dell. It's a new microprocessor from Intel. People run out and what do they do? They buy the new technology and it still happens today, not as much as it did in the '90s but it still happens today. In real estate the last killer app literally killed the market.

Didn't it? Those crazy mortgage products and we don't need to go in that again. It really had a detrimental killer application. When it comes to the greening of America residentially, industrially and commercially we are a little further along but residentially we are at what I call the National Anthem stage of the greening of America.

We are not in the second inning or the fifth inning, we haven't even finished singing the National Anthem, that's how new and opportunistic this market is. I believe that so much that we just built the world's largest and the most expensive certified green home at $24.3 million on speculation. So, the same concept, the same mentality that takes you to Wal-Mart or to Home Depot to pay an extra dollar for a 6 pack of fluorescent lights versus your incandescent. That same mindset is transitioning home buying or even renting. Here's proof, the National Association of Realtors surveyed 2000 people, it might have been 1000, but anyway it was 1,000 or 2,000 people.

They were on the sidelines and couldn't decide whether they were going to buy or not, they were afraid. They changed the question and said if it was built or renovated green, would you do so? 46% of the people not only responded with a positive answer yes I would but I would be willing to pay more.

Of the millions of homes that are built or renovated and sold each year, there is such a small percentage that are certified green and here you've got this base, this buyer base that cannot have that impulse, that need to buy and live green satisfied. So if you are looking for the next killer app in real estate go and learn all you can from the United States Green Building Council. USGBC.org is the perminating certified agency. It's what we went through to have our house certified, actually our house is triple certified. That is a place where I think you can make a fortune.

Mosca: What is your golden nugget?

McKinney: The nugget would be on the business side, exercise your risk threshold, your tolerance for risk like a muscle. Eventually it will become stronger and able to withstand pressure. On the business of life side, there is a wonderful mantra regardless of your religious preference or even if you have one, there happens to be a passage from the Gospel of Luke, 12:48 says paraphrasing "To whom much is entrusted, much will be expected."

Do you want to succeed in the business of life, God rewards responsible stewards and so each one of us listening has been blessed with the ability to succeed at some level, but those blessings were never meant for our sole benefit, they were meant to share with others who will likely not succeed at Peter's level or my level. So, we put that sentiment, that mantra into action. We started a charity back in 1998 called the Caring House Project Foundation. It has now built 11 self-sufficient villages in Haiti. This is before the earthquake.

You could imagine our hearts breaking 2 months ago when the earthquake hit. We've been back two times since.

I build a lot of big houses so we can provide a self-sustaining existence for the most desperately poor and homeless over in Haiti. Don't lose sight of your spiritual highest calling while you pursue your professional highest calling.

Published: April 29, 2010

Distress Properties Surge in February & March

2010-04-12T16:30:00.000Z

Distressed Properties Surge in February & March

First-Time Homebuyers Look to Tax Credit

The share of home purchase transactions involving distressed properties surged to

nearly half in February, according to the latest Campbell/Inside Mortgage Finance

Monthly Survey of Real Estate Market Conditions. At the same time, participation

from first-time homebuyers picked up as the expiration of the tax credit approaches.

Last month distressed properties – those involving homes acquired as part of a

foreclosure or pre-foreclosure sale – accounted for 48.1% of the home purchase

transactions tracked in the closely-watched monthly survey. This was way up from

the 37.3% level recorded as recently as November. It was also the highest distressed

property market share seen since last July.

Stepped up government efforts, including temporary foreclosure moratoriums and

a push to qualify more financially troubled homeowners for mortgage modifications,

temporarily reduced the number of distressed properties coming on the housing

market in the fall and much of this past winter. But now there appears to be a

growing number of distressed properties hitting the housing market.

There are three major types of distressed properties: damaged Real Estate Owned

(REO), move-in ready REO, and short sales. During the period from November to

February, the proportion of all three categories rose; damaged REO grew from

12.3% to 14.4%, move-in ready REO grew from 12.6% to 16.6%, and short sales

grew from 12.4% to 17.1%.

“Short sales now account for the No. 1 category of distressed property,”

commented Thomas Popik, research director for Campbell Surveys. “Losses on short

sales are typically lower than for REO, and both lenders and the government are

Proportion of Distressed Property Sale

The percentage of distressed property sales found in the housing market during February surged to the

highest monthly level seen since last July.

Source:

Campbell/Inside

Mortgage Finance

Monthly Survey of

Real Estate Market

Conditions

Housing Trends Update  March 2010

pushing programs to facilitate short sales. But as more and more people default or simply

want to walk away from their properties, mortgage servicers are having trouble

expeditiously processing these complicated transactions.”

Agents responding to the survey indicated that the inventory of distressed homes is

growing. “Short sale inventory is rising but short sales are not selling - they are going into

foreclosure. We have many, many vacant, unlisted homes in the Phoenix Metro area in

every price range,” reported an agent in Arizona.

“I expect to see additional short sale and foreclosure properties on the market in the

next 60-90 days and according to our local lenders we will see a higher number of

REO properties in the 2nd and 3rd quarter,” said an agent in South Carolina.

Meanwhile, in a hopeful sign for the housing market, first-time homebuyers are once

again playing a growing role. The latest survey showed that the share of first-time

homebuyers grew from 38.9% in January to 42.9% in February.

Much of this growth is attributable to a major tax credit due to expire this spring. In

order to qualify for an $8,000 tax credit, first-time homebuyers must have signed a

purchase contract by April 30 and must close the transaction by June 30.

Agents indicated increased traffic as the end of the tax credit approaches. “There has

been a pronounced pickup in homebuyer traffic at the very end of February which will

probably result in contracts before the end of April,” commented an agent located in

Colorado. An agent located in North Carolina stated, “We have demand, [but] not like

October and November.

We are seeing more traffic as the deadline draws closer.” “Some

banks with short sales are actually trying to speed up the process and if this becomes a

trend we may see the February traffic result in closed sales prior to the tax credit deadline.”

opined an agent in California.

Real Estate Outlook: Positive Sings of Recovery

2010-03-15T17:30:00.000Z

Real Estate Outlook: Positive Signs of Recovery

by Kenneth R. Harney

Positive signs on employment and national economic growth should start being felt in the housing market in the coming several months, say top economists.

The Labor Department reports that there were 2.7 million job openings last month -- 200,000 more than in the same survey the month before.

Meanwhile, the consensus forecast among private and government economists for the main barometer of the U.S. economy's health, gross domestic product or GDP, is for a very solid 3 percent during the first quarter.

Alan Levenson, chief economist for T.Rowe Price Associates, said the latest reports are “indicative of a labor market and economy that is in the midst of recovery.”

That's hugely important for real estate because expanding employment created by a rowing national economy are the essential fuels to power housing demand and sales.

Even though harsh weather conditions knocked the wind out of pending home sales and real estate shopping in many areas during January and February, analysts say the spring and summer market should be strong.

Lawrence Yun, chief economist for the National Association of Realtors, says the $8,000 and $6,500 federal home purchase tax credits that expire at the end of April for signed contracts -- and the end of June for closed deals -- should squeeze a lot of sales volume into the spring and early summer months.

Assuming slow but steady improvement in the jobs picture, Yun forecasts a solid second half of the year as well.

On the home pricing front, evidence continues to mount that in most parts of the country, home values have either bottomed out or have turned positive.

The most recent Case- Shiller index numbers on the top 20 metropolitan markets bear that out -- and last week's Zillow home value report found values essentially flat on a national average basis. They were down by just three tenths of a percent, but up in some major markets of note.

For example, Boston's home values are up nearly two percent year-over-year, according to Zillow, and Los Angeles, San Diego, Denver and Philadelphia have registered gains after long periods of negative numbers.

Two other statistical hints that conditions are improving: The difference between listed prices and selling prices of home nationwide is now smaller than it's been in a year, according to real estate research site Trulia.com.

Realty Trac fond that foreclosures, which are clearly still a massive drag on the market -- dropped by two percent last month -- the second straight month of decline.

In a tough market, I guess we should appreciate even the smallest of improvements.

Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the National Real Estate Development Center, a professional education company.

Share The Vision: 30 Ways to Make Your Communities Better Places to Live and Work

2010-02-03T15:27:12.000Z

Share the Vision, A Legacy of Giving - February 1, 2010

Celebrating Mark Hughes Day and Herbalife’s 30th Anniversary around the World. Take a look to amazing moments shared by Distributors on their experiences with the founder of Herbalife! Click Here

“Everyone is part of the goal and plan of making this a better place to live. Everyone.”
–Mark Hughes, Herbalife’s Founder and First Distributor, 1956-2000

30 Ways to Make Your Communities Better Places to Live and Work

1. Volunteer your time at your local Casa Herbalife program or another neighborhood community center.

2. Reduce, Reuse and Recycle.

3. Search the web using GoodSearch.com – a number of charitable organizations receive a few cents every time you click, simply select the charity you would like to benefit from your web surfing and you’re set! Hint: Herbalife Family Foundation is listed under ID: 84085

4. Plant a tree.

5. Use public transportation.

6. Participate in a beach clean up.

7. Shop with reusable cloth bags.

8. Get to know your local government officials.

9. Turn off the lights when you leave a room.

10. Join a community garden.

11. Talk to an elderly person.

12. Read to a child.

13. Smile at a stranger.

14. Get to know your neighbors – street party, neighborhood watch.

15. Fix the streets and potholes in your area.

16. Set up a local park for the kids – give them a place to go.

17. Clean up public areas, like back alleys and pick up trash.

18. Create a dog-friendly place, but clean up after your dogs.

19. Limit water usage.

20. Clean up neighborhood graffiti.

21. Create cross walks.

22. Slow down cars on the streets – speed bumps, stop signs.

23. Start a book-lending program.

24. Create bike paths.

25. Tutor a child.

26. Go back to your high school and motivate kids to stay in school.

27. Donate – your time, your old appliances, clothing.

28. Reduce noise pollution.

29. Turn your leftover food into compost instead of throwing it away.

30. Unplug – save electricity on unused appliances.

About Me

Robin Baker
Missouri, United States

I am a stay at home mom now. I have a husband and 3 children. I think Herbalife products can really help a lot of people. I am a proud Herbalife Independent Distributor and I personally use their herbal products. I get rewarded a small commission when you purchase through the links on this blog.

Email Me: Ask Me About Herbal Life

- wahmrobin@gmail.com

- Posted by Robin at 11:23 AM
Labels: Better Living Tips, Herbalife’s 30th Anniversary, Mark Hughes

P.S.

More Herbalife Information For My Readers

Hi, Just wanted to share this with you all.
Individual weight loss may be more or less, depending on the individual’s own unique metabolism, diet, starting weight, and frequency of moderate exercise.

Everyone person should consult his or her own physician before beginning any weight loss program. Herbalife products can support weight loss and weight control only as part of a controlled diet. Although certain Herbalife products may be suitable to replace part of a daily diet, they should not be used as a replacement for a person’s entire diet and should be supplemented by at least one adequate meal on a daily basis for weight loss. Enjoy healthy snacks and I recommend to drink more water.

To help maintain your weight or lose weight get started on the Herbalife Nutritional Shakes. Use soy milk to make your healthy shakes with. :-)

Your Herbal Life Advisor,

Robin :O)))

2010 and Rebuilding or Protecting Your Credit Score

2009-12-15T04:21:56.000Z

2010 and Rebuilding or Protecting Your Credit Score
by M. Anthony Carr
If the latest numbers on credit card delinquency is any indicator, U.S. consumers are starting to get a handle on their credit card debt. In the 3rd quarter of this year, according to data from TransUnion, a credit reporting agency, the delinquency rate dropped to 1.1 percent.

The Associated press reports: “The decline is significant because of its timing. Delinquency rates usually rise in the third quarter from the prior period as people spend on summer vacations and back-to-school shopping,” said Clifton O'Neal, a TransUnion spokesman.” How you handle your debt affects your credit score and rating, which is what affects your ability to get a loan to purchase a home. The good thing about credit scores is that they are merely a snapshot of your credit at a given time. Missed payments, high credit vs. limits, too much credit, et. al., can all be corrected and cleaned up and your credit score return to a new high level.

Tim McLaughlin, senior vice president of Weichert Financial Services, answers the question – what dings on your credit affect your score and why it seems all the good loans (low rates, low/zero point, and even product availability), seem to favor those with good credit.

The Fair Isaac Corporation maintains the most popularly used score (referred to as the FICO score) and it ranges from 300 to 850. They also have a great resource on how to understand the score: What I like about McLaughlin’s information from his Market Monitor newsletter is that he provides the number of points your score will drop or increase with these items in place or cleaned up.

“There are five major ‘dings’ that impact your DCS (Decision Credit Score, or FICO score) the most, some obvious, some not so obvious: Maxed out credit cards: Doesn’t seem like a big deal in the grand scheme of things, right? Oh, it is: a maxed out credit card can reduce your DCS anywhere from 10 to 45 points, according to Fair Isaacs, a hefty price to pay for accumulating debt.

30 Day late mortgage payment: In addition to the late fees, this occurrence adversely impacts your DCS by 60 to 110 points … a whopping impact for being late on your mortgage.

Debt settlement: Also known as debt arbitration or debt negotiation, it is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. The downside, a 45 to 125 point drop in your DCS.

Foreclosure: Unfortunately, an occurrence we are seeing far too often as of late. In addition to the event, it will reduce your DCS 85 to 160 points.

Bankruptcy: The event that would have the single biggest negative impact on your DCS, reducing your score 130 to 240 points; an almost irreparable event.”

FICO has its own web site dealing with the scoring prices and it’s a good starting place for those trying to repair their credit rating.

Here are the three credit reporting agencies that use the FICO score:

Equifax (www.equifax.com)

TransUnion (www.TransUnion.com)

Experian (www.Experian.com)

Published: December 14, 2009

REO Assertions and Assumptions

2009-08-22T01:23:54.000Z

REO Assertions and Assumptions

Published on Thursday, July 30, 2009, 10:42 AM Last Update: 23 hour(s) ago by Mildred Wilkins

Category: All Articles » REO's and Foreclosures

Biggest Assumption: They just need to dump it

Translation: They’ll take any kind of crazy offer

Assertion: N-O-T YET

As a former Fannie Mae Broker–Specialist, I can provide insight into the real world of buying and selling bank-owned properties. First, forget most of what you think you know about such transactions—you’re probably way off target.

The Devil’s in the Details . . .

If you’re assuming they just need to dump it, you are half way right. They do, they really do, but not at any price. The most common misconception is that the holder of REO property will accept any offer without consideration for the value of the collateral. I suspect you’ve been watching too much late night television. While it is true that the increased volume of foreclosed properties means a substantial increase in REO inventory, the basic business principles which govern liquidation are not changing as rapidly as they need to (or as you had hoped they would.)

Harsh New Reality

It is a harsh new reality that today’s market is being flooded with REO’s. Thousands more will be added in the months ahead as a result of the backlog which has been created because of political posturing. As a consequence, both federal agencies (HUD, VA, Fannie and Freddie) and private mortgage insurance carriers will need to adjust their guidelines during the upcoming months. Unfortunately, as a practical matter, in the meantime, they and loan servicers must operate within the guidelines of existing regulations and existing contractual stipulations until they are amended. They will be relaxed—necessity will dictate that they must be. The consequence will be a ‘let’s make a deal free-for-all.’ Good for agents and buyers—not so good for price stabilization. But it has to happen and the sooner we get to it the better.

They Don’t Know Its Value

You’re right on target with that assertion. The “local market reality” is a piece of data which is hard for the servicer to grasp when they handle properties around the country from a centralized location. The truth is, their usual resources are less than reliable. They must rely on:

• Their appraisal, and we know how likely that is to be inflated

• A $50-$75 BPO—okay, does anyone really think you’re getting an accurate evaluation with a product produced in a BPO mill? Do you really think that they are trying to determine value with that document? (They are NOT. They are fulfilling a servicing requirement to have a BPO performed.)

• Their gut instinct

• The loan amount shown in their computer—but since when has that been connected to the ACTUAL value of the property?

Hence, the market will dictate and that process takes time. If the property is ‘rejected by the market’ for an extended period of time then it is declining in both actual and perceived value. It’s in everyone’s best interest to determine fairly accurately, from the onset, what is today’s market value. Consequently, the servicer needs a current, as-is appraisal. While many appraisers were rewarded for inflating values during the boom years, they are now stuck with the unpleasant task of trying to justify vast differences between former and current value. Market correction is not enough of an explanation but the recently sold comps don’t lie. It’s worth what someone will pay for it—today—not last year.

The Law of Supply and Demand

In time (I think within the next three to four months) the inventory will be so high that the valuations will plummet and get in line with what a ready and able buyer is willing to pay a reluctant REO owner. During the boom years hundreds of thousands of houses were built across the country without any clear need based on population growth. Speculation in real estate was HOT. The jobs created, the loans generated, and false illusion of prosperity made for wonderful headlines.

I was nearly thrown out of a Foreclosure Task Force meeting in Indiana in 2006 when I dared to mention the need for a moratorium on new construction since the city had already built more than 30,000 new homes in 5 years for only 10,000 new residents. I mentioned a college business class on supply and demand. I visited Denver in 2006 and thought they were building homes for the entire United States to move there. Then I moved to Florida and quickly observed that enough new houses where being built there for the few folks who didn’t want to move to Denver or Indianapolis. Shall I mention Atlanta, Las Vegas and twenty other cities which issued building permits without checking to see where the buyers were coming from. We are paying the piper (and we will be paying for the next ten years) for allowing an excessive amount of housing to be built. We created an economic situation which will dictate FEWER aggregate occupied households as people move to sharing homes in order to survive the financial crisis created, in part, by the ‘creative financing’ used to sell the new housing stock.

In time, the newly created rental housing market (previous homeowners, now renting again) will absorb much of the current excess single family housing but we will have changed the dynamics of communities across the countries from single family, owner-occupant to rental dwellings, perhaps housing more than one family. Investors are the most likely purchasers for the glut of foreclosed homes which will hit the market during the next two years. As businessmen and women, they will make decisions based on totally different criteria than buyers who would be owner-occupants. Financial institutions will have no choice except to reconsider their options when holding costs, fines from municipalities and other constraints dictate they do something to stop the bleeding. Excess has its payback. The law of supply and demand will not be ignored; pretending it does not exist is a sure fire way to pay the piper.

Now about that insurance and title work

If you do not know the difference between a ‘marketable title’ and a ‘clear title’ this would be an excellent thing for you to research if you are planning to purchase an REO property. Suffice it to say that the REO you are purchasing can have gaps in the title coverage which leave room for undisclosed liens to surface after the closing and bite the new owner in the proverbial behind. Since you will have signed numerous documents which stated that you understood that you had no recourse after closing: you will not be surprised when I tell you: YOU HAVE NO RECOURSE AFTER CLOSING.

Watch for an upcoming webinar on the HOM website: “Buying REO is Risky Business”. You might want to put that on your schedule.

Mildred Wilkins, founder and president of Home Ownership Matters, LLC. She is the trainer for the (FIS) Foreclosure Intervention Specialist certification program. Visit her blog: HomeOwnershipMatters.blogspot.com or call toll free (866) 507-5105. Copyright © 2007. HOM, LLC. All rights reserved.

Buyer Assistance Program: The tax advantages of home ownership

2009-06-06T02:33:43.000Z

Buyer Assistance Program

by Pat Zaby

The Federal government has put all the pieces together for an incredible Buyer Assistance Program that you can package and market.

The tax advantages of home ownership allow the owner to deduct the property taxes and interest which lowers their monthly cost of housing. An adjustment can even be made to a taxpayer’s W4 so that more deductions are withheld to realize a higher paycheck throughout the year to balance the deduction of the interest and property taxes when their return is filed.

When the homeowner sells the property, they’re entitled to the exclusion of up to $250,000 or $500,000 in gain based on specific circumstances. What a great deal: live in a home, enjoy it, and avoid tax on the money you make too.

The First-time homebuyer’s tax credit is a fantastic opportunity that basically subsidizes the down payment itself. It may be the chance of a lifetime for the people who are eligible because they must close the sale of their new home by 11/30/09 to qualify. The clock is ticking. For more information, see Pat Zaby’s April 2009 Newsletter – Get Off the Fence for the Tax Credit.

While credit requirements are much tighter now, the interest rates are the lowest they’ve been in 50 years. People who can qualify take advantage of this variable that affects cost of ownership as much as the price. It is imperative that a buyer make a loan application at the very beginning of this process.

There several other things to improve the financing which include concessions by the seller that can be used to pay closing costs or buy down interest rates. Reducing the amount of money it takes to get into a home initially and the monthly payments can be a great incentive to getting a buyer off the fence and acting now.

The professional advice of a knowledgeable agent is more important than ever before. There is so much conflicting information in the media and from people in general that it literally paralyzes potential buyers. Some committed professionals are willing to take the time to learn the current tax laws, financing alternatives, and skills it takes to communicate them.

These agents will help their buyers see a way to secure a piece of the American dream with Buyer Assistance that may not be available together again as they are today.

How long can a half-built house sit?

2009-05-02T12:13:02.000Z

There are risks to buying a home when construction has been halted for a time. Here’s what can go wrong at each of 3 critical stages.

Plus: 5 ways to protect yourself.

By Marilyn Lewis of MSN Real Estate

All over the U.S., blocks, streets and entire subdivisions of homes are sitting half-finished because their builders ran out of money or went bankrupt. In 25 (mostly coastal) metro areas surveyed by research firm Hanley Wood Market Intelligence, 52,295 housing units are completed and sitting empty, with 6,097 of those located in projects where work has been halted or canceled.

For engineer and construction expert David Carlysle, business is booming. He is often called on to evaluate half-built construction: Banks want to know if projects they've inherited through foreclosure can be salvaged. Builders need help calculating the cost of completing a job. City inspectors often won't issue a building permit to restart a stalled job without an expert assessment of damage.

"Most of the time what we have seen is the builder ultimately goes bankrupt and the bank winds up looking for someone to finish it for them," says Carlysle, president of the National Academy of Building Inspection Engineers and owner of Criterium-Carlysle Engineers, in Birmingham, Ala. Banks either hire a builder to complete the job or try to sell an unfinished project to a builder who will complete the homes and put them on the market.

But as demand for new homes has dried up, so have bank loans that would enable a new builder to step in and complete the job. And these abandoned homes can sit empty month after month after month.

What's your home worth?

Exposure to the elements is a big risk, but not the only worry. Builders under financial pressure sometimes cut corners before finally walking away, Carlysle says. He tells of a 3,500-square-foot home — "the kind of house that would wow a buyer" — that was nearly finished when the original builder went bankrupt.

Tipped off by a sagging wall, Carlysle found that crucial support beams were missing in several places. The original builder hid the shoddy work behind finished walls, skipping a city inspection that would have exposed the negligence.

There are some great deals on new homes today. But before you inadvertently buy trouble, here's what you need to know about the potential costs and safety concerns of interrupted construction.

New Home Sales Better Than Expected

3 vulnerable stages

Homes are erected in a sequence involving three main stages. A break in the sequence invites trouble. Whether problems result, and how severe they become, hinges on three questions:

At what stage was construction abandoned?

How long was the project left unfinished?

How much wind, rain, temperature change and ultraviolet light was it exposed to? All these can damage or even destroy an unprotected building over time.

Stage 1: Roughed in
When a house is "roughed in," the site is graded, the foundation built and the framing (usually wood) is erected. Some or all of the sheathing — boards of plywood or manufactured wood — may be installed as the subfloor and roof underlayment.

Exposure limit: Roughly two months from the start of construction.

Risks: If abandoned for even a few months at this stage, especially in high humidity or continuing wetness, a house can become seriously damaged. The longer the exposure, the worse the risk:

Manufactured wood products, made of glue and wood fiber, can swell and lose strength in moisture. "They can actually turn to kind of mush if they get too wet too often," says Claudette Reichel, an expert on housing and building materials at the Louisiana State University Agricultural Center.

The warranties and manufacturer recommendations vary on different products, but generally two months — roughly the time it takes to get a house ready to enclose — is their exposure limit, Carlysle says. Oriented strand board (OSB) used in floors, roofs and walls, can grow mold in a week or less under the right conditions, causing ugly stains and a health hazard.

Plywood — thin, laminated sheets of wood pressed together with glue — will separate and warp. (Warped wood is unsightly but structurally sound.) "It's basically rated for exposure during the construction period and that's all," Carlysle says. "If it sits on the site for a month or so before the building gets started, then that clock is running."

Framing studs are less vulnerable because they're made of solid lumber and are narrow and vertical. But if water is trapped on the surface, even solid lumber can rot in a few months, Reichel says.

Foundations are likely to settle, buckle or crack after a heavy rain if gutters aren't installed yet or if the soil hasn’t been graded to direct runoff away from the house. Failing foundations cause uneven floors, ill-fitting doors and wall cracks.

If left uncovered, synthetic roof weather-barrier products, called "felting," break down after several months' exposure to sun, wind and storms, reducing their effectiveness.

Even nails eventually corrode. Dan Grisa, a contractor in Riverside County, Calif., who rehabs half-built homes for banks and investors, says he's seen nails rust right inside the wood framing of a half-built home.

Stage 2: Dried in

A house is considered "dried in" when it is protected but not tightly sealed. At this point, the roof is finished and sealed with flashings to weatherproof joints and seams; wall cavities are filled with insulation; and the outside is covered in moistureproof house wrap.

Inside, plumbing, wiring, ductwork and subfloor panels are installed. Floors and walls are defined and supported with panels of plywood or manufactured wood sheathing. Windows and doors may or may not yet be installed.

Exposure limit: Roughly four months after work has stopped

Risks: Moisture is the biggest risk at this stage:

Plywood or manufactured wood flooring or roof sheathing can mold or rot. "I've been involved in some projects where the house was not well dried in, so that water was able to penetrate in and sit on the subfloor," Carlysle says.

House wrap grows brittle and loses protection after several months of exposure to sunlight, wind or driving rain. Synthetics, used in house wrap, roofing felt and flashings (tape used to seal joints and seams) can hold out four to five months at most before they must be enclosed under siding or roofing, says Bijan Mansouri, technical applications manager for Fiberweb, maker of Typar house wrap and other membranes.

After that, synthetics lose the ability to repel and transmit moisture. "The longer a product is exposed to sunlight, the more it basically breaks it down," Mansouri says.

Wind-driven rain and freezing and thawing also drive moisture through synthetics and into the house, inviting mold and decay.

Moisture can enter wall cavities.

If dampness is sealed into walls, it can ruin insulation and encourage mold and rot. "I have seen that in homes where the house wrap and finishing was not properly applied and water gets into the areas under the eaves,

" Carlysle says. "We've opened those areas and found essentially black mush in there."

How long can a half-built house sit?

Stage 3: Finishing

In the final phase of construction, exterior walls are covered with weatherproof siding and windows and doors are installed, sealing the home from the elements. Inside, wallboard is installed; cabinets and doors are hung; and flooring, paint, appliances, heating and air conditioning, fixtures and trim are added.

Exposure limit:

A well-made, watertight house can sit for many months — even years — as long as the heating and cooling systems are running and someone inspects the home regularly for leaks and damage. Without running heating and air conditioning, a house – particularly one with sensitive electronic components – shouldn't be abandoned more than six months, Carlysle says.

Risks:

Mold grows easily on damp interior surfaces and inside wall cavities if a home's heating and cooling equipment is not running.

Owners of vacant homes commonly leave the water turned on but the heat off, to save money. Freezing and thawing breaks pipes and appliance hoses, then leaks or gushers erupt when things thaw. "A lot of empty houses have been damaged by frozen pipes," Carlysle says. "After we've had a cold spell, I have been past houses with water running out the doors" and down the street.

Moisture also is a threat to gypsum wallboard, says Scott Feste, spokesman for United States Gypsum Co., which makes Sheetrock brand wallboard panels. Although wallboard panels can tolerate water if dried quickly, mold will grow on them in prolonged dampness. "You don't want to expose them to prolonged periods of high humidity," Feste says. Of less serious concern, the unpainted surface of wallboard discolors in strong light; stain-sealing paint covers the problem.

Finished solid wood floors can be ruined as boards separate and warp if they shrink and swell from getting wet or staying in constant humidity.

Doors and woodwork may be ruined by swelling and cracks if temperature and humidity controls are turned off.
Even a furnace, air conditioner and appliances suffer.

"Electronic components are ruined by humidity," Reichel says. Even in a warm, dry home, heating and cooling systems and appliances should be run every few months or they may stop functioning.

"Any purchaser of property that has sat for a while needs to make sure the heating equipment and controls are operational," Reichel says. "Hire a heating and air conditioning contractor to go through the equipment and check it."

Empty homes these days are an invitation to vandals, thieves and squatters. Thieves strip everything of value from an unguarded home: appliances, sinks, toilets, granite counters, furnace, air conditioning components, trim, wood floors, light fixtures and even copper plumbing, which is sold for scrap.

Home inspectors tell of homes where vandals punched in walls and ceilings, smeared feces on the walls and floors and took a chain saw to roof trusses. If severe damage is covered up without having been properly repaired, a buyer could inherit a mess.

How to uncover a home's history

It can be tough to spot trouble beneath newly finished floors and fresh coats of paint, but you can mitigate your risk by following these steps:

Talk with neighbors who watched the house go up. If somebody says, "Oh, yeah, that house sat there for months (or years)," get serious about looking further into the home's history.

Follow the paper trail.

Visit the city building department to see a home's inspection records and, if possible, talk with the inspector who watched the house as it was built. Some cities keep great records, others are lousy or nonexistent, and inspectors aren't always willing to dish on a builder. But it's worth a try, since this is often a new home's only record.

Look beneath:

When checking out a home, try to see the underside of the floor from the basement or crawl space. Look for water stains, particularly at the edges and where it meets the (vertical) floor joists. Stains can mean there was a fire (and water was used to extinguish it) or that the house had sitting water during construction (a bad sign).

If a dropped-tile basement ceiling obscures your view, push up the tile to see. While under the main floor, also check for water stains directly beneath all windows and doors. These indicate leaks during construction.

Get a diligent inspector: Hire a certified home inspector (cost: about $200 to $300) or structural engineer (cost: about $300 to $500) to thoroughly examine any home you're considering purchasing. Engineers are qualified to diagnose structural problems, home inspectors are not.

(Read "4 tips for finding the best home inspector. Search here for a member of the National Academy of Building Inspection Engineers.)

Hire a specialist: If you really are interested in a house but suspect problems, hire a building forensics specialist, usually an engineer, to inspect in detail. Such comprehensive examinations cost about $1,200 to $1,500 and may involve boring into walls in an inconspicuous location to test for mold spores or to insert a fiber-optic camera to scan for rot and structural problems.

The specialist may bring in a plumber, electrician and roofing or heating contractor to dismantle and go over every system in the home.

Home affordability calculator

Yearly gross income

Monthly debt payments

Cash available for purchase

Even if you do all of this and don't uncover telltale signs of trouble, there is still a substantial risk to buying a house that's been abandoned for a time. Home sellers and contractors can cover up problems so well that even a superb inspector can't spot them.

Asked if he'd buy a home for a great price that may have been abandoned during construction, Carlysle says, "Just based on my experience of seeing some of the things that can go wrong, I would probably be one of those who would say, 'No thanks, I'll find something else.' "

2009 Homebuyer Tax Credit

2009-04-14T12:30:00.000Z

2009 Homebuyer Tax Credit The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

Frequently Asked Questions> (PDF: 483K)

Download the IRS First-Time Homebuyer Tax Credit Form 5405> (PDF: 257K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit> (PDF: 319K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit>

(PPT: 218K)

Latest News and Information
NAR Webinar: First-Time Homebuyer Tax Credit - April 28, 2009

In this webinar, you'll learn exactly how the first-time homebuyer tax credit works, and you'll hear about how you can build a marketing program around the incentive to reach prospective buyers.

Register for the webinar>

4/05/2009 - NAR Runs Printed Ads in Targeted Congressional Districts

On Sunday, April 5th, NAR ran printed ads in select newspapers, thanking a specific group of Members of Congress for their leadership and efforts in passing the $8,000 first-time homebuyer tax credit.

Download a copy of the ad posted on the Maine Sunday Telegram> (PDF: 105K)

3/19/2009 - IRS Provides Filing Guidance on First Time Homebuyer Tax Credit

The IRS released additional information to help homebuyers understand the ways they can file to receive the homebuyer credit.

Read more>

How to Help Stabilize Your Housing Market

2009-03-10T04:44:47.000Z

How to Help Stabilize Your Housing Market

by Ralph Roberts

Recently, I have been researching the estimated cost of an average foreclosure. Estimates range from $50,000 to $80,000 and account for losses to lenders, homeowners, local government (in property taxes), and neighbors (reduced property values). None of the estimates account for losses to real estate agents and other professionals in our industry. Yet, we are often the ones to suffer the most pain in our pocketbooks.

If it's true that we have much to lose when housing bubbles burst, we also have much to gain in a thriving market. Because of this, we need to do everything we can to help stabilize our markets by helping homeowners avoid foreclosure and remain in their homes. Here are several things you can do to help stabilize your housing market:

Brush up on foreclosure rules and regulations in your state. Become the go-to guy or gal on foreclosures in your area, so you can educate homeowners on their rights and the timelines they are facing. (Don't offer legal advice, unless you are a licensed attorney, but you can let people know their options.)

Train yourself on short sales and short re-financing. Lenders are often more willing to negotiate short sales with real estate professionals who know property values in the area than with homeowners. In addition, homeowners often have no idea of where to start with a short sale or short re-fi. You may be able to charge the homeowners a fee for your services in addition to earning a commission from the listing.

Get connected with a reputable loan officer who is willing to work with distressed homeowners to identify any refinancing options.

Connect with attorneys in your area who specialize in foreclosures, bankruptcy, and loan modification. Create your own mini-referral network. Depending on the regulations in your area, you may even be able to pay one another referral fees.

Connect with other professionals in your area, too, including mortgage brokers and credit counselors.

Consider hosting foreclosure self-defense workshops or seminars in your area. You can team up with other professionals in your area to deliver workshops or seminars that lay out all the homeowners' options and help them decide which option(s) are most viable and desirable for them. When the homeowners choose an option to pursue, they are most likely to hire you or another one of the professionals you have teamed up with to serve their needs.

Tip: If you host a foreclosure seminar or workshop, offer it to everyone in the community who is facing foreclosure or knows someone who's having trouble making their house payments. Many homeowners are embarrassed by their situation, even when they are suffering through no fault of their own. If they can save face by saying they are attending because someone they know is facing foreclosure, you can attract more participants.

Working to stabilize your housing market can often seem like a thankless job, particularly if you see other professionals in your area apparently benefiting more from your efforts than you do. These lean times will or have already weeded-out the part-time real estate agents, leaving you and other dedicated professionals like you to deliver practical solutions to ailing homeowners.

Keep in mind that helping homeowners stay in their homes can slow and eventually stop the domino effect we often witness in areas with rampant foreclosures. Only after we put a halt to the epidemic, can we hope to see signs of recovery – increasing demand, rising property values, and a return to healthier and more predictable commissions.

Published: March 9, 2009

You can reach Ralph at RalphRoberts@RalphRoberts.com or by calling (586) 751-0000

Realtors® Welcome Renewed Efforts Toward Housing Stabilization

2009-02-06T03:37:21.000Z

Realtors® Welcome Renewed Efforts Toward Housing Stabilization
WASHINGTON, February 03, 2009

Congress and the U.S. Department of the Treasury must enact legislative and regulatory priorities to stabilize the housing market and help stop the U.S. financial market’s rapid deterioration, and on Friday, five freshman U.S. senators took decisive action toward this goal.

“For months the National Association of Realtors® has urged the importance of stabilizing the housing market to help the nation’s economic future,” said NAR President Charles McMillan. “Although steps have been taken, the focus has not been on housing in the way it needs to be. We thank and congratulate five of our country’s newest senators for their leadership in pushing for decisive action to, in their words, ‘restore vigor to our nation’s slumping housing industry.’”

Last November, NAR presented a four-point plan developed to spur home sales and stem the rapid rise in foreclosures by lowering mortgage interest rates and unclogging the credit market, extending the home buyer tax credit, making the increased loan limits permanent, and increasing liquidity in the both the commercial and residential real estate market.

On Friday, Sens. Jeanne Shaheen, N.H., Kay Hagan, N.C., Mark Udall, Colo., Tom Udall, N.M., and Mark Begich, Ark., called for their Senate colleagues to focus on housing in the American Recovery and Reinvestment Tax Act of 2009, S. 1, and to expand the home buyer tax credit through the end of 2009. In a letter to their colleagues, the senators noted that the housing industry has long been the engine that drives our economy and recommended extending the tax credit until the end of 2009 to encourage aspiring and qualified home buyers to come off the sidelines and significantly reduce the nation’s high housing inventory.

NAR agrees with and supports the senators’ actions and vows to work with Congress and the administration to establish strong housing legislation that will help bring stability to home values, prevent foreclosures and put the U.S. economy on the road to recovery.

10 Traits Entrepreneurs and Einstein Share

2009-01-29T02:00:00.000Z

10 Traits Entrepreneurs and Einstein Share

You don't have to be a theoretical physicist to share a few character traits with Albert Einstein. Heck, you don't even have to know what theoretical physics means.

By Mike Werling

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"You're no Einstein." How many times have you heard that in your life? When people have compared you to the great thinker, has it been in the spirit of sarcasm--Nice one, Einstein?

Albert Einstein has become the benchmark by which everyone measures intellect, though few understand what made the man tick. (For more on that see Unleash Your Inner Einstein.)

Throughout his long life, the creator of E=mc2 (and one of a handful of people to know what it really means) indicated what he saw as the path to success through his words and actions. Entrepreneurs have more in common with Einstein than they think. Many of the traits that led him to be named Time magazine's Person of the Century--kind of an elite club--drive people to create businesses. Do you see a little of Einstein in you?

Imagination. Einstein said, "Imagination is more important than knowledge." The fellas over at Google had all the computer skills and knowledge they needed to have successful careers in some firm's IT department--along with tens of thousands of other techies. What makes Larry Page and Sergey Brin household names is the fact they imagined there was a better way to search the web, and then they created it.

Always questioning. "The important thing is not to stop questioning." One of the most important questions an entrepreneur can ask is How can I make it better? Whether you offer a product or a service, improving it is the only way to attract new clients and retain existing ones. While Phil Knight was marketing Nike to the top of the athletic-shoe sales heap, Bill Bowerman tinkered with the shoes' designs and made sure Nike footwear was on the cutting edge of innovation. How can the new model, Bowerman wondered, be better? If Einstein had stopped questioning, we would have been left with his thoughts on relativity instead of an entire theory.

Old problems, new ways of thinking. "We can't solve problems by using the same kind of thinking we used when we created them." In the 1940s and '50s, book publishers printed paperback books based solely on hardback titles that had lost momentum; Ian Ballantine created Bantam Books Inc. to do just that. He soon realized he was limiting his profit potential by sticking to the old way of thinking. He decided--much to other publishers' and bookstores' chagrin--to produce original paperback titles for mass-market sales. Sixty years later, both models still exist. And Ballantine likely would have jumped at the chance to offer books electronically.

Intuition. "The only real valuable thing is intuition." Einstein worked in theoretical physics; he had to trust his intuition to move forward on anything. Entrepreneurs do the same thing every day. Intuition told Richard Branson the Sex Pistols were worth signing to a fledgling Virgin Records. Intuition told Hugh Hefner men would pay for a magazine filled with high-quality articles and fiction writing that was interspersed with photos of nude women. (Or was it the other way around?) Trusting one's gut led to many of the 20th century's greatest advances.

Strong positive attitude. "Weakness of attitude becomes weakness of character." In the early 20th century, greeting cards were given for Christmas and Valentine's Day. In 1915, a few weeks before Cupid's favorite holiday, a warehouse fire destroyed J.C. and Rollie Hall's entire inventory of Valentine's Day cards and left them $17,000 in debt. They borrowed money, purchased an engraving firm, designed two new cards and printed them in time for Christmas. Nearly a century and countless new ideas later, Hallmark Cards sets the industry standard.

Naps. Einstein was supposed to be a big believer in midday siestas to recharge the brain. Some companies--Google and Nike, to name two--have created nap-friendly guidelines for their employees. There may be a lesson there for up-and-coming entrepreneurs. Other entrepreneurs have utilized naps in a different way: bringing napping equipment to the workplace. No lie. MetroNaps installs sleep pods in companies' buildings for employee use.

Rise above the mundane details. The stories of Einstein having a closet full of the same suits are exaggerated, but the point of the story is made: He didn't want to spend intellectual and chronological capital wrestling with one of life's mundanities. The definition of mundane details will vary from person to person--you say spreadsheets, I say boring--but know what you consider mundane and hire someone to take care of those tasks before they get neglected and drag the company down. Howard Hughes--before he lost the keys to his sanity vault--didn't like the administrative day-to-day duties of the company he inherited from his father. He hired someone to handle it, and that person turned Hughes' $1 million company into a $75 million empire. The other lesson there is "hire well."

Willingness to try new things--and fail. "Anyone who has never made a mistake has never tried anything new." Just ask the people at Coca-Cola circa 1985. The Coke folks realized the error of their ways and reinstated the traditional formula, but many of their other forays into new flavors--cherry and vanilla to name two--have proved to be huge successes.

Maintaining balance. "If A is a success in life, then A equals x plus y plus z. Work is x, y is play and z is keeping your mouth shut." Notice Einstein didn't put absolute amounts on each of his variables. I doubt that was accidental. He knew--and now so do you--the ingredients to success; he also knew the formula was going to change from day to day. Whatever the ratio of x to y to z, entrepreneurs cannot forget Y.

Stay on top of tech. Early in his career at the Swiss Patent Office, Einstein was passed over for a promotion until he mastered the technology of his day: machines. The entrepreneurs who are remembered at the end of this century will be the people who maximize the use of technology. What is the next internet? Where will communications be in 25 years? How will information be delivered, and on what devices? The people who figure out the answers to those questions will be entrepreneurs at the forefront of their industries.

So you don't know relativity from a relative. That doesn't mean you don't have something in common with Albert Einstein. After reading this, you may have all kinds of retorts for the next person who tells you you're no Einstein.

Real Estate Marketing With Auto Responders

2008-12-23T15:22:42.000Z

Real Estate Marketing With Auto Responders

You've probably heard of auto responders but do you really know what they are and how you can use them to make more money?

I'm guessing "probably not," as many real estate agents aren't as up to speed with Internet marketing strategies as are other on-line marketers. However, I'm betting that once you know what they are you'll understand how you can use them to gain an advantage over your competitors and significantly increase your earning capacity.

But before we completely put the cart before the horse let's define what an auto responder is! In a nutshell, an auto responder is an email marketing system that provides automatic responses to prospects requesting information from you; 24 hours a day, 7 days a week and 365 days a year.

With an auto responder you can set up your email messages once, and from then on you'll be able to provide automatic follow up until you program it to stop.

I've been using auto responders in my on-line real estate businesses since November 04, and have used them to grow my email subscriber lists from none to more than 1,100 people interested in my information and services. I went from enrolling a few subscribers a month in December 04 to more than 100 a month.

Admittedly, there are faster growing lists than mine, and faster ways to grow those lists. However, I am okay with adding a hundred prospects a month to my business. Slow and steady can be more enduring than the take the money and run approach! Case in point; I'm still in business while some of my competitors aren't.

Ways to use an auto responder. Imagine this! It's 2:00 AM and you're fast asleep. But your auto responder, like the good virtual secretary it is, has just received another email request from a prospect wanting a copy of your free report that you're offering to first time home buyers. And in less time than it takes to blink an eye it emails a copy of the report to the prospect.

Congratulations! You've just secured the best kind of lead there is – somebody who has contacted you for additional information. And, they just provided you with all the information you need to provide adequate follow up; phone number, email address, etc.

So, now you can get to doing what other good marketers do – following up until you make a sale. However, you're doing it automatically, while other agents are plugging away one misery inducing cold call after another.

Practical uses of an auto responder.

It's pretty much accepted as fact that it can take up to 7 times of contacting someone before they do business with you. Still, many agents are applying old practices of selling to a fast paced society without any automation whatsoever; no web site, no auto responder, no nothing! It's a game they can't win and may soon be out of business because of it!

You, on the other hand, are reading this article and may see the plausibility of this idea and how you can use it to your advantage.

Take the following idea, for example. Let's say you want to target first time home buyers living in high end apartment complexes, and your theme is "buy for the same as rent." Do you think renters paying $1,800 to $2,500, or even $1,000 a month for that matter might be interested in buying homes if the mortgage payments are the same as their rent fees? I do, and think this strategy has the potential to be a multi million dollar idea!

Here's what you need to do to capitalize on it! Get an auto responder and set up a special report that you will deliver in a series of 7 emails over 7 days. You'll actually be able to send as many email reports as you like in whatever intervals you choose.

Include in each email message report your contact information, so that when prospects are wanting personal attention they will call you, or email you at your main email address.

Your Special Report could look something like this:

First Lesson:Ten "No-No's" For The Home Buyer
Second Lesson: Ten Tips For The First Time Home Buyer
Third Lesson: Ten Common Mistakes People Make When Buying A Home
Fourth Lesson: FHA Loans: What Are They And Do You Qualify?
Fifth Lesson: Title Insurance: Do You Need It? What Is It?
Sixth Lesson: Everything But The Kitchen Sink: What Stays And What Goes. The Importance Of A Contract
Seventh Lesson: Interest Only Loans Vs A Traditional Loan: What Is The Difference?

Next, mail flyers, letters, or post cards to the targeted tenants informing them of your special report where they can "Buy For The Same As Rent." Tell the readers that they can get a FREE copy of your report, which is to be delivered via email in 7 parts and in 7 days, by emailing you at your auto responder email address. Once they email the address the entire series of reports will be automatically emailed to them. You won't have to lift even a finger again to send them.

Then, get ready for some business. Prospects will sign up for your email course because they want the information, and they like being able to get it without being pushed. Then, when they're ready, they'll call or email you for additional information.

When they do you'll know that they're serious about moving forward with the idea of buying a home.

Here's another marketing idea using auto responders.

Take the same idea above and apply it to newspaper ads, but you can vary the theme by target buyers, sellers, or investors. There are reports available for all of them.

Specifically, look in your real estate classified ads for any ads similar to the one described above. My bet is you won't find many, and you may not find any! Why?
Because real estate agents, for the most part, are still marketing real estate the old way; get a listing, place an ad; get another listing, place another ad. And agents with no listings usually don't ever advertise at all!

But you can change all of that and dominate your market with an auto responder, which is kind of like traditional real estate marketing in reverse. However, the routine with it is to get a prospect, get another prospect and even more prospects and establish relationships with them over a series of communications, then close them on deals!

Auto responders range from FREE to $40.00 or so a month.

The free ones are loaded with ads that you have no control over. So, be forewarned that you'll come across as tacky and unprofessional if you use them permanently. However, a FREE one is a great way to get a sense of what they can do. You can always upgrade to a paid subscription and have the ads removed later on.

responder will come with:

Unlimited auto responders
Personalization of emails
Unlimited follow-ups
Complete import and export features
Plus a host of other features...!

You now know about the awesomeness of auto responders and how you can use them to become a more effective marketer. All that's left now is to just do it...!

Happy prospecting...!!!