THE HARDCASTLE LETTER Insider Breaking News for the Savy Real Estate Investor

DONT DRINK THE COOLAID

2015-08-19T16:07:00.000-07:00

YEAH YEAH YEAH WE HAVE HEARD THIS BEFORE

DONT DRINK THE COOLAID FRIENDS

Yes, We have all heard about the ballooning government debt in D.C. We all know that the debt ceiling will have to be raised again. But so what. The Stock Market has never been higher. Housing is recovering etc etc. OK Lets LOOK A THE WHOLE PICTURE because NOTHING has REALLY changed.

1) THE US GOVERNMENT IS UNABLE TO SELL ITS DEBT TO OVERSEAS BUYERS. DID YOU KNOW THAT THE CHINESE STOPPED BUYING OUR PAPER 20 MONTHS AGO AND IN FACT ARE QUIETLY UNLOADING ALL THE DOLLARS THEY CAN AND ARE BUYING REAL FIXED ASSETS.....EVEN OVERPAYING AND OUTBIDDING US COMPANIES FOR OIL, COPPER FIELDS, PORTS, REAL ESTATE ETC WITH TH E 7 TRILLION IN US DOLLARS THAT THEY HOLD.

2) DID YOU KNOW?! THE CHINESE NOW OWN BOTH PORTS ON EITHER END OF THE PANAMA CANAL AND ARE FINANCING THE PANAMANIANS ON THE EXPANSION OF THE CANAL TO HANDEL OIL SUPER TANKERS

3) DID YOU KNOW THAT YOU PAID FOR THE DISCOVERY OF THE LARGEST NEW OIL FIELDS EVER DISCOVERED WITH KNOWN RESERVES TWICE THAT OF ARABIA OFF THE COAST OF BRAZIL? ( 4.7 BILLION US TAX DOLLARS AS A GRANT TOP THE BRAZILIAN GOVERNMENT) DID YOU KNOW THAT THE CHINESE CAME BEHIND US 5 MONTHS AGO AND OUT BID US AND SIGNED 50 YEAR LEASES ON ALL THESE OIL FIELDS WITH THE BRAZILIANS. NOW IT BECOMES CLEAR WHY THEY WANT THE PANAMA CANAL. EH? IN CASE YOU ARE FROM MARS OR DONT KNOW YOUR GEOGRAPHY, WHICH IS LIKELY IF YOU RECEIVED A US PUBLIC SCHOOL EDUCATION, THE SUPER TANKERS IN THE ATLANTIC FROM THE NEW CHINESE OIL FIELDS WILL GO THROUGH THE NEW CHINESE PANAMA CANAL INTO THE PACIFIC AND OFF TO FUEL CHINESE FACTORIES HOMES AND CARS

4) DID YOU KNOW OR YOU LIKELY HEARD THAT RUSSIA, INDIA, CHINA AND AUSTRALIA NO LONGER TRADE BETWEEN THEMSELVES IN US DOLLARS ( THE CURRENCY OF INTERNATIONAL EXCHANGE. THAT STOPPED 15 MONTHS AGO AND AUSTRALIA 3 MONTHS AGO.

5) DID YOU KNOW THAT SAUDI ARABIA , IRAQ, YEMEN AS WELL AS A MAJORITY OF THE BOARD OF THE WORLD BANK INCLUDING GEOGRE SOROS HAS CALLED FOR THE US DOLLAR TO BE DROPPED AS THE CURRENCY OF INTERNATIONAL EXCHANGE. YOU SAY A BIG........SO?!?!??!!

THE DAY THAT THIS HAPPENS, THE US WILL HAVE TO BUY ALL OF ITS COMMODITIES ON THE INTERNATIONAL EXCHANGE IN THE NEW CURRENCY, LIKELY A BASKET OF CURRENCIES THAT INCLUDE THE REMBODO, THE YEN, THE EURO AND THE RUBLE. THAT MEANS WE HAVE TO TRADE OUR FUNNY MONEY WE HAVE BEEN PRINTING LIKE A FIEND FOR THE THE NEW CURRENCY TO BUY THINGS. WITHIN 4 WEEKS YOU WILL SEE GAS QUADRUPLE IN PRICE. YOU WILL SEE ALL IMPORTED GOODS SKYROCKET IN PRICE AND INFLATION ON THE SCALE OF ARGENTINA, VENEZUELA, AND OTHER COUNTRIES THAT HAVE FOLLOWED THE SAME PATH IN THE PAST THAT WE ARE FOLLOWING NOW. MASSIVE AND PERVASIVE INFLATION THE LIKES OF WHICH WE NAVE NEVER SEEN. IT IS COMING.

AT THE CURRENT RATE OF GOVERNMENT SPENDING, THE TOTAL INCOME IN TAXES TO THE FEDERAL GOVERNMENT WILL NOT EVEN PAY THE INTEREST ON THE NATIONAL DEBT WITHOUT A DOLLAR LEFT OVER FOR DEFENSE, GOVERNMENT OPERATIONS, MEDICARE, SOCIAL SECURITY OR ANY OTHER PROGRAM! THAT IS ONLY 16 YEARS AWAY AT THE CURRENT RATE OF SPENDING.

WAKE UP. DONT BE A DRIVE BY VOTER OR BELIEVE ALL YOU HEAR FROM THE POLITICIANS. THEY HAVE ONE GOAL. GET ELECTED. THEY WILL NOT TELL YOU THE TRUTH, THATS TO UGLY AND DONT EXPECT A BROKE GOVERNMENT TO TAKE CARE OF YOU IN THE FUTURE, RETIREMENTS FUNDS? SOCIAL SECURITY? A DREAM. MEDICARE? OBAMACARE. A WORSE PIPE DREAM THAT WILL END UP KILLING PEOPLE AND AT A HIGHER HEALTHCARE COST THAN NOW.

PREPARE FOR THE FUTURE. HOW?

THE STOCK MARKET IS PAPER. I LIKE PROPERTY

1) GET OUT OF ALL SHORT TERM DEBT. SACRIFICE YOUR STANDARD OF LIVING IF NECESSARY TO DO SO.

2) REFI YOUR HOME NOW IF YOU ARE PAYING MORE THAN 4.5 % IN INTEREST ON YOUR MORTGAGE

3) IF YOU ARE RENTING DO ALL YOU CAN TO BUY NOW AND LOCK IN ON LOW RATES. LOOK FOR LEASE DEALS WHERE THE OWNER WILL OFFER OWNER FINANCING FOR THREE TO FIVE YEARS WITH 40 % OR 30% DOWN. MANY ARE DOING THAT TO MOVE REAL ESTATE SINCE BANKS ARE ST6ILL BEING STINGY WITH LOANS,.

4) ALWAYS USE A PROFESSIONAL LIKE THE HARDCASTLE GROUP IN ALL YOUR REFI, OR SELLING OR PURCHASING NEEDS. I HAVE BEEN IN THIS BUSINESS FOR30 YEARS AND KNOW THE PITFALLS SO YOU WONT FALL INTO THEM. AND LET ME TELL YOU. SOUTH FLORIDA IS PARTICULARLY FILLED WITH CON ARTISTS, CROOKS MORE THAN HAPPY TO STEAL YOUR MONEY

2012-10-01T20:57:00.000-07:00

Its OFFICIAL.... THE WORLD IS ENDING IN 2012

Just when you didn't think things could get any worse... famine, war, terrorism, violence, abortion, political turmoil, recession, ( near depression) unemployment, HOUSING COLLAPSE, gang violence and drug addiction... IT JUST GOT WORSE...

It was announced this last month that one of Queen Elizabeths Corgies " passed away". When I read this, I put down the jobs report in the Wall Street Journal and wept. After a passing Nun, passed me a tissue, I reflected through my tear stains $9.88 readers from CVS Pharmacy and read further of the anguish, pain and, Im sure growing ANGER and disbelief that this could have happened. It died of OLD AGE! My God! Is there no mercy?!

All of you people who selfishly think about nothing more than your JOB or your shrinking opportunities under the current government better thank your lucky stars that you have it SO good and are NOT a Corgi and a DEAD ONE at that!

Sound Stupid? I hope so,, But Im afraid that MOST Americans have become so stupid of the reality of our current economic and political situation, that some of them actually shed a tear in the last three paragraphs.

For the rest of you,, PLEASE excuse me while I beg the 47% of the country that has DRUNK THE COOL AID while likely watching HONEY BOO BOO on TIVO, that they are in danger of permanent stupidity and serfdom and the TIVO repossessed and flat screen as well.

This country is in SERIOUS trouble because we have a dumbed down doled out electorate that care more about milking the cow than letting it live. The ME generation has come of age and they want a CHECK!

DONT BE STUPID... watch the world around you, study the trends, invest accordingly. . Its really not rocket science.. Its responsibility and using your head and NOT just your heart and your stomach.

As my VERY smart Grandfather taught me... You have TWO EARS and ONE mouth... USE ACCORDINGLY. LIsten twice as much as you talk.

God Save the Queen

2012-08-01T12:40:00.000-07:00

These are the Times that Try Men's Souls (and create lunatics)

There are many that read this blog and take its advice that are truly perplexed at the current state of economic affairs in our nation.

1) Should I invest in Real Estate?

2) Will the economy continue down its current spiral?

3) Should I be more liquid in my investments or lock in and tie my money up?

Lets take each one of those issues one at a time and I will give you my best, educated, highly intelligent opinion. The fact that I have been a student of economics for 30 years and still do have my wits about me and two brain cells rubbing together,..... I should be able to give you a sensible answer.

Answer One: Should you invest in Real Estate?

Depends WHERE you want to invest, and for WHAT reason. I CAN tell you this and then you can make your own decision. The Chinese, South Americans and smart North Americans I know are buying real estate investments with US dollars as quickly as possible. Prices have never been this low as well as interest rates. The NUMBER ONE MARKET IN THE US right now is MIAMI FLORIDA. ( number two is TAMPA, FL) We are seeing double digit gains in values in Miami just this year alone. It has become a HOT SELLERS MARKET from a dismal BUYERS market in the last 12 months. People who waited, have lost the BEST deals but there are STILL deals be had. I myself have purchased two more condos in my own building in the last 9 months and both have already appreciated over 15%

Rents are also on the rise because inventory is now not keeping up with demand Construction has begun again in Miami. But THOSE prices are SIGNIFICANTLY HIGHER and are being bought out by foreign investors with all cash. The GOOD NEWS IS THAT IM LOCAL AND I KNOW WHERE THE GOOD DEALS STILL ARE!

Answer Two: Will the economy continue on its current spiral downward?

The quick answer is YES. Until things change in Washington and especially the WHITE HOUSE, the current course will remain the CURRENT COURSE... Higher inflation, lower growth, fewer jobs, more government and the taxes that go with it and fewer opportunities

My advice? November is coming. VOTE EARLY , VOTE OFTEN

Answer Three Should I stay liquid or tie money up?

Let me grab that answer by the short hairs and cut to it. STAY LIQUID or in investments that are commodities based, NOT in US companies trading in US dollars! You will get hammered I believe in the near term if you do. The dollar is sinking as quick as our national debt is rising. But REAL STUFF.. like REAL estate, REAL oil, gas, gold, silver etc. have REAL value that float with the value of MONEY and the value of money. If your dollar is eroded by inflation, THOSE commodities will cost more IN THOSE DOLLARS thereby protecting the value of your investment.

Want the best to help YOU in making the wisest real estate investments? Then done fool around with amateurs. The Hardcastle Group is NUMBER ONE on the beach in South Florida and California and stands ready to give you sound, dependable guidance.

Contact me. 24/7 Greg Hardcastle 800-614-6151 toll free.

BRAIN DROPPINGS FOR THE NEW YEAR FROM MIAMI

2012-01-10T23:04:00.000-08:00

1. Do not argue with an idiot. He will drag you down to his level and beat you with experience.
2. The last thing I want to do is hurt you. But it's still on my list.
3. Light travels faster than sound. This is why some people appear bright until you hear them speak.
4. If I agreed with you, we'd both be wrong.
5. We never really grow up, we only learn how to act in public.
6. War does not determine who is right - only who is left..
7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.
8. Evening news is where they begin with 'Good Evening,' and then proceed to tell you why it isn't.
9. To steal ideas from one person is plagiarism. To steal from many is congress
10. A bus station is where a bus stops. A train station is where a train stops. On my desk, I have a work station.
11. I thought I wanted a career. Turns out I just wanted paychecks.
12. Whenever I fill out an application, in the part that says, 'In case of emergency, notify:' I put 'DOCTOR.'
13. I didn't say it was your fault, I said I was blaming you.
14. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.
15. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.
16. A clear conscience is the sign of a fuzzy memory.
17. You do not need a parachute to skydive. You only need a parachute to skydive twice.
18. Money can't buy happiness, but it sure makes misery easier to live with.
19. There's a fine line between cuddling and holding someone down so they can't get away.
20. I used to be indecisive. Now I'm not so sure.
21. You're never too old to learn something stupid.
22. To be sure of hitting the target, shoot first and call whatever you hit the target.
23. Nostalgia isn't what it used to be.
24. Change is inevitable, except from a vending machine.
25. Going to church doesn't make you a MORAL PERSON any more than standing in a garage makes you a car.
26. Where there's a will, there's relatives.

NOTE When you take from ONE source, its plagiarism... When you take from 26.... ( See above) Its RESEARCH!!!!!!!

If you want a team that knows all 26 of these truisms, but also is THE leader in luxury beach sales and leasing in all of South Florida.... Call the HARDCASTLE GROUP AT 800-614-6151

BRAIN DROPPINGS FROM SOUTH FLORIDA

2012-01-10T19:10:00.000-08:00

1. Do not argue with an idiot. He will drag you down to his level and beat you with experience.
2. The last thing I want to do is hurt you. But it's still on my list.
3. Light travels faster than sound. This is why some people appear bright until you hear them speak.
4. If I agreed with you, we'd both be wrong.
5. We never really grow up, we only learn how to act in public.
6. War does not determine who is right - only who is left..
7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.
8. Evening news is where they begin with 'Good Evening,' and then proceed to tell you why it isn't.
9. To steal ideas from one person is plagiarism. To steal from many is congress
10. A bus station is where a bus stops. A train station is where a train stops. On my desk, I have a work station.
11. I thought I wanted a career. Turns out I just wanted paychecks.
12. Whenever I fill out an application, in the part that says, 'In case of emergency, notify:' I put 'DOCTOR.'
13. I didn't say it was your fault, I said I was blaming you.
14. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.
15. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.
16. A clear conscience is the sign of a fuzzy memory.
17. You do not need a parachute to skydive. You only need a parachute to skydive twice.
18. Money can't buy happiness, but it sure makes misery easier to live with.
19. There's a fine line between cuddling and holding someone down so they can't get away.
20. I used to be indecisive. Now I'm not so sure.
21. You're never too old to learn something stupid.
22. To be sure of hitting the target, shoot first and call whatever you hit the target.
23. Nostalgia isn't what it used to be.
24. Change is inevitable, except from a vending machine.
25. Going to church doesn't make you a MORAL PERSON any more than standing in a garage makes you a car.
26. Where there's a will, there's relatives.

2012-01-09T17:35:00.000-08:00

WHO DO WE BLAME FOR ALL THE SPENDING?

(After all,.... non of US are responsible!!!!?!!,,, I want names!)

U.S. debt surpasses GDP

NOW WE ARE OFFICIALLY GREECE!!!!! GET OUT THE BAKLAVA!! Lets Celebrate and throw all of Nancy Reagan's White House China in the Fire Place.... OOPPAA!

WHO IS THE BIG SPENDER HERE?

Ok so the President says that the 1% of you out there are KILLING and EATING the CHILDREN of the rest of the 99% of us...out THERE.....

That cant be such a huge list! Lets get all the names and put them in CAMPS so that they cant hurt us like the Japanese Americans would have in WW11. We put THEM in camps and stole all thier money and their businesses for the 99%.. Why not those 1% people that are so EVIL ( Well... they ARE paying 52% of all tax revenues to Uncle Sam) BUT THATS JUST CONFUSING THINGS!!!!

INCONVENIENT FACTS
Compensation on Wall Street is set to be the lowest since 2008, when the financial crisis hit. According to people familiar with the situation, compensation for most of Goldman Sachs' approximately 400 partners will fall at least in half from 2010 (though that still amounts to more than $3 million per person). And pay for Goldman's fixed-income trading division could see compensation fall by 60%, with some people receiving no bonus at all.

Morgan Stanley is expected to cut bonuses for some investment bankers and traders by 30%-40%.

These compensation cuts are after banks made plans to slash more than 200,000 jobs over the next few years.

WHAT ABOUT THE PRESIDENTS "COMMUNITY ORGANIZER" BUDDIES?

Steve Rattner, an Obama CZAR spoke last month at the Detroit Economic Club, a nonpartisan organization that hosts public-policy discussions. To promote that appearance, Rattner agreed to an interview with local radio personality Frank Beckmann… The host opened the interview by asking if Rattner stepped down from his White House post in anticipation of the Security and Exchange Commission's (SEC) suit that would later allege a kickback scheme involving Rattner's private-equity firm.

Things did not go well… I won't ruin the surprise, but the fireworks are well-worth listening to the interview posted to the WJR talk radio station website…

Obama is not just a SOCIALIST.. HE IS A CRONY CAPITALIST/SOCIALIST... that actually in scientific economic circles is known as STATE FACISISM ( You know... TO BIG TO FAIL BUSINESSES in bed with the REGIME in power. (* See: NAZI GERMANY 1933-1945)

This man was personally implicated in bribing New York state pension officials (but hasn't been indicted yet). He made close to $500 million via his private-equity fund (Quadrangle), while his investors underperformed municipal bonds. This guy lives in a $15 million home on Martha's Vineyard and in the same Fifth Avenue apartment building as George Soros. This is a guy who flies his own plane… whose wife is the leading fundraiser for the Democratic Party. This is Arthur Sulzberger Jr. and Michael Bloomberg's best friend. And Barry Diller's. This guy spent his entire life in the rarified world of Ivy League colleges, investment banks, and New York City's most elite social circles.

And yet… even with all of these advantages, he ended up accused of bribing New York State pension officials to get them to invest with his private-equity firm. (By the way… I have to hand it to OBAMA! on appointing Rattner as the "car czar." OBAMA! knew about the corruption charges, and he appointed Rattner to restructure General Motors anyway. After all, who better to steal from bondholders than a crook?) And now, Rattner was going to lecture us, the great unwashed, about "income inequality." It was simply unbearable…

After spending about 20 minutes congratulating himself on the bailout of GM (which cost taxpayers roughly $80 billion and bondholders roughly $27 billion), Rattner put up a chart he seemed to believe indicated rich people in America were making far too much money.

( NOTE) Rattner ended up settling his SEC case for $6.2 million, a pittance for the billionaire. He was also banned from "associating with any investment advisor or broker dealer" for two years. And as his appearance with Frank Beckmann makes clear… he doesn't want to talk about it.

ELECTIONS MATTER... TODAYS LESSON
No more needs to be said on this subject.. If you dont get it... Call 911.. you have no brain waves.

SURE DEAL FOR TODAY
Letting Hardcastle Group steer you with our extensive knowledge of Real Estate Investment, sales, purchases and management so you dont end up as a sorry news story on someone else's BLOG. Give us a call. 800-614-6151

An Idiot’s Guide to Next Financial Bubble Burst

2011-12-16T18:15:00.000-08:00

Why is the Financial Crisis in Europe so important to us here in the US? Who needs those pesky Europeans, right? Well... besides the fact that over 22% of everything we export overseas is BOUGHT in Europe, and the fact that..... .. ok.. lets just stop there. 22% is reason enough to sit up and listen.

The European Union is an economic and political institution forged over decades, sealed with a treaty in 1993 but only, truly made real in 2002, when most of the current member states dropped their currency in favor of the common euro. For centuries a breeding ground for war and imperialism, Western Europe had bound itself together in peace and apparent prosperity, with a supranational government all its own to be quartered in Brussels.

Things have changed. While most major banks remain multinational (with interests around the world) their errors — some would say crimes — have brought renewed focus on the sovereign state. Today, Greece, Italy, Ireland, Portugal and Spain are on the edge of default, the euro zone nations have a new catchphrase: “Exposure.” As in, how much “exposure” do our banks have to the bad debt held by yours. This is the least you should know.

Why are these nations in debt? Like any state (or person, for that matter) it spent more money than it took in. Sound familiar? Sounds like the good ole' US of A to me!!

Traditionally, but especially, after switching over to the euro, these nations' governments paid out huge amounts of cash they simply did not have. To compound this, the retirement age there is low by modern Western standards, and benefits are generous. Public sector employees are well paid. Sounds good, right? So when the money ran out, these nations have turned to European banks for loans. Soon, these governments were... AND ARE.... borrowing hundreds of billions and those debts, like subprime mortgages in the United States, are toxic and insolvent.

Just like here, European banks will take 50 cents for every dollar owed to them by these nations' governments. In exchange, these countries must impose what many have described as a crushing austerity. That means no more early retirement, reduced pay for public workers (the ones who manage to keep their jobs), large-scale cuts to social programs, and a staggered repayment of the reduced debt.

There have been riots in cities across Europe by thousands who want their cake, pie, STEAK, seconds, valet parking... and Eat it too! EVERYBODY WANTS SOMETHING FOR NOTHING... or I should say. They dont want to PAY for what they HAVE received and continue to wish for.

What will happen if Greece or any of these other EU nations default on its foreign debt?

The first thing you would notice is a massive drop in stock markets from the U.S. to Japan, and all across Europe.

German banks, and maybe French too, would need massive bailouts. The prospect of those defaults in other debt-ridden countries could cause a run on the banks. Even more money would leave the market. And when money leaves the market, demand drops. When demand drops, economies go in the crapper.

It is for this reason, you are seeing the US work through the IMF to prop up these European banks with...YES... PRINTED MONEY... from our ever printing, never stopping, dollar presses in the basement of the Treasury Department. (15 trillion and counting........)

My prediction? All of these measures are fingers in the dike stop gap moves. They have not even begun to address the REAL problem.. and that is the enormous FLOOD behind the dike wall that is not likely to go away any time soon.

And what is that flood? To much debt. To much government, to much spending, the politicization of economic fundamentals and the violation of those economic fundamentals. Lets simply say that 1 - 1 = ZERO and always WILL equal ZERO no matter what your local politician says. And when you blow hot air into a balloon... at some point, if you dont stop.. IT WILL BURST.

A Sea of Trouble

2011-01-27T21:24:00.000-08:00

2011-01-15T09:52:00.000-08:00

With all the negative in the news lately, I decided to add a little "lightness" to your day in this blog. Not ALL of life is about economics and real estate......well... IT SHOULD BE.. but its not ENJOY

Great truths about life that adults have learned

Raising teen-agers is like nailing Jell-O to a tree.

There is always a lot to be thankful for, if you take the time to look. For

example, I'm sitting here thinking how nice it is that wrinkles don't hurt.

One reason to smile is that every seven minutes of every day, someone in an

aerobics class pulls a hamstring.

Car sickness is the feeling you get when the monthly payment is due.

The best way to keep kids at home is to make a pleasant atmosphere - and let

the air out of their tires.

Families are like fudge...mostly sweet, with a few nuts.

Today's mighty oak is just yesterday's nut that held its ground.

Middle age is when you choose your cereal for the fiber, not the toy.

My mind not only wanders; sometimes it leaves completely.

If you can remain calm, you just don't have all the facts.

New Year, New Opportunities

2011-01-08T14:29:00.000-08:00

The new year 2011 will bring many new opportunities in Real Estate Investment. The pitfalls will be equal to the opportunities.

2010 will always be considered the bottom of the real estate market since the Great Depression. Not since the 1930's have we seen the same levels of depreciation of prices or the number of defaults and foreclosures. During the last quarter of 2010, a modest turn in the level of decline of values and the number of home sales has turned.

In the South Florida market, we have experienced the highest level of closed sales in the last 4 years starting in July of this last year. While prices have dipped on average by 45-60%, depending upon location, the number of sales has jumped over 120% over last years levels. That has virtually stopped the slide in values and in some cases has led to some bidding wars among investors on the best deals. Short Sales and Foreclosure sales still outnumber the resales in the market but this number is quickly declining.

Pressure on interest rates and the weakening dollar are putting people back into the market as well to grab the best mortgage deals before they are gone. AND they WILL be gone within 18 months at the outside. It is inevitable. The fox is already in the coop. The fox is the massive dollar printing that took place in the last 20 months by the Federal reserve and there is no pulling that back in. Those dollars are in the market place and at some point, will come home to wage an inflation war on the US. Be prepared.

Real Estate and commodities, especially those pegged in US currency will be a good hedge against the devaluing of your cash position. But debt will not be your friend by any stretch if you are holding short term adjustable interest debt. You are sitting on a time bomb that you MUST get rid of or be seriously hurt. Dont ignore this warning. It will be to your peril.

WHICH WAY AMERICA?

2010-10-05T22:38:00.000-07:00

Its not often that I talk about politics in this blog. Real Estate investment strategies are the core of the discussion here. However, 27 days from now, Americans will go to the polls. And in this election, I cannot think of another moment in my lifetime where the people of this country have a clearer choice. It is a choice that will determine what kind of country and what lifestyle my children and grandchildren will live in.

I am firmly convinced that there are forces at work to destroy the "American Experiment" that was based on limited government, self reliance, self initiative and the belief that as Jefferson said, "THE GOVERNMENT THAT GOVERNS LEAST GOVERNS BEST" In the last 18 months, a larger percentage of our national GNP has been nationalized by the federal government than has been nationalized by Marxist Hugo Chavez in Venevuela in the last 8 years! That is truly frightening.

The government has printed almost three times the amount of money that was in total circulaton just 2 years ago to buy our own debt with our own FUNNY MONEY. The ONLY reason that inflation has not taken over like a wild fire is that so many Americans are under water in their mortgages. That means they have no credit to go out and spend. Corporations are holding over 1.6 trillion in cash reserves and are not investing in new plant and hires because of the uncertainty of what new regulations or taxes this out of control government will do next. BANKS are hold reserves of over 1.8 trillion but are not lending.

But when the moment comes in the psychology of the nation that makes people feel they better spend it or lose it.....WATCH OUT! It will hit us like a train in the night and there will be no stopping it. There is NO EXIT PLAN by the FED in printing all this cash and all they have done is to delay the pain so that it is MUCH WORSE later on.

Invest? Gold, Coal, Euro Bonds, and seriously devalued real estate that is income producing are your best bets for the future. I believe that real estate values will sink another 20% unless the foreclosure and credit markets resolve. LENDING is the key to real estate sales and LENDING is locked up. If you are an all cash buyer, you are in luck. There are tremendous deals out there that I believe will see great gains as inflation takes over. Stocks? NO WAY... inflation will kill recovery and joblessness will rise affecting any consumer related corporation. But, everyone needs a place to live. Many who own now... will be RENTING in the future.

Real Estate and Ethics DO Mix

2010-08-11T10:35:00.000-07:00

LETS TALK ABOUT RIGHT AND WRONG.......
Most people dont want to talk about the subject of what is right and wrong in this day and age of "situational ethics" translate.. "I dont HAVE and ethics....",

So what does that have to do with Real Estate, Specifically it has to do with the melt down in the Real Estate Markets and the correpsonding meltdown in the Financial markets. The core cause of which is the meltdown in the ethics of INDIVIDUALS making UNethical business decisions. AND, YOU may be one of them. Dont think so? Read on.

Not all, but SOME, Wall Street, Main Street and the Mortgage Lending offices along with the Real Estate office and the Brokers that run them. There is a Commandment in THE Ten commandments that is oftren overlooked. We like to focus in on...murder.....adultery......idol worship....and all the "really bad stuff". But there is one fatal sin that is equal to them all.. COVETING. It manifests itself in people wanting more than they can afford, more than they are due and the jealousy that today we like to call... " SOCIAL JUSTICE" . Because Bill and Mary Sue have a big house., then I AM OWED a big house too. Never mind that Im a complete idiot and cant even remember to make the Newspaper payment on time.

Our all knowing and ALL wise government ORDERED Frannie Mae and Freddie Mac to make honme owernership the RIGHT of ALL Americans. Never mind that SOME Americans cant hold down a job, pay thier bills on time and would rather light up than clock in. But that doesnt matter. What Americans covet.. they MUST have and the Banks and brokers hungry for commissions were more than willing to step up to the plate with exotic derivatives and financing schemes that not even a super computer at the NSA could figure out.

Its all about PRIDE and wanting to be and have something that you are NOT. Its also the good book that says.. PRIDE goes before a FALL. And BOY aint it so!

CHAPTER TWO OF THE FALL.....
In comes that all knowing ALL helping hand of government ( looking for votes) to let people step away from their commitments and contracts and DEFAULT on thier mortgages simply because the game changed and the investment that they had BIG EYES for isnt so big anymore. Never mind that someone else bought thier commitment and depends on them making that payment. You have enough people that skip out on their contractural commitments and the entire financial system goes into free fall. IN COMES THE government again.. This time we call it a BAIL OUT.. Compliments of the Chinese government and funny money printed somewhere in a dark basement of the Federal Reserve in Washington D.C. This year 1.8 trillion of those dollars to be exact. If I were Chinese I would be worried that the 2.7 trillion in US Treasury notes that I have purchased will only be good for papering the bathrooms of about a billion screaming red hot mad Chinamen when they find out that the US notes they are holding are about as valuable as a roll of USED Charmin.toilet paper. And sadly.. its true.

I recently counseled a young man that was upside down in his mortgage to stick it out and not to fall into the trap that so many have. He was advised by an attorney to default on his mortgage in the hopes that the bank would work with him on a Loan Modification. After ruining his good credit, the bank has yet to offer him a toaster or a nifty bank calendar much less a loan modification.

POINT? Im going to type this in BIG letters for those of you that have half your brain tied behind your back..... IF YOU CAN PAY THE MORTGAGE ON YOUR HOME...PAY IT.. DO THE RIGHT THING AND EXPECT RIGHT THINGS TO COME BACK TO YOU. Just because the commitment you made earlier is not working out as your planned does not release you from your ethical obligation to be a man....or woman of your word. Honoring your word is more important than keeping home equity. Are you an honest person ONLY when it doesnt cost you money?

Case in point..... Man walks up to cute girl and asks her. If I give you a Million dollars will you sleep with me? She says, Are you serious? A million dollars? Wow,, I guess so. Sure. He then says.. Ok how about ten bucks. She says.. HEY! What do you take me for? He says.. We already established that. Im just trying to get to a price.

Not to toot my horn, but I have a condo on the beach in South Florida that I paid $360,000 for. Its now worth about $250,000 The Loan is $270,000 I have faithfully made the payments. In fact, I havent even applied for a Loan Modifcation. Bottom line, Chase bank in the last three months, modified my loan by reducing my principle by $110,000 and dropped my interest rate to 4.8 percent on a 15 year amortization. It dropped my payments by $900 a month. It DOES pay to do the right thing. And WHY did they give me the modificaiton? THIER answer. CLEAN credit, High FICO score, Never late on a payment, LOW risk for the bank. END OF BLOG...ENOUGH SAID

CONGRESS GO HOME!

2010-07-27T17:20:00.000-07:00

Business needs STABILITY and a constant and level playing field plus rules to flourish. If anything, the current REGIME in power in Washington has all the business experience and expertise of my 5 year old Shiz Tsu. At least my dog understands the concept of performance equals REWARD... A CAPITALIST idea by the way.

The only way that this economy and the Real Estate industry that is ESSENTIAL to the recovery, will recover is if Congress will adjourn for..... oh lets say.... TWO YEARS. NO laws would be preferable to the lunacy of laws that have been enacted into law in the last 18 months.

Is this about a political party? No. Is this about a candidate? No! Its about common sense and the correct decisions that must be made to make America the business capitol of the world. How is it that the Chinese of all people.. Yeah,, the COMMUNIST Chinese, are eating our lunch right now. Because they tried what we are now trying for 50 years and the people ended up living on dirt floors and choking to death on dirty factory smoke making shovels for the masses that no body needed. ( Central Planning) Now you go to China and it looks like Times Square plus 100 on a great shopping day.. Amazing wealth generation and capital accumulation..

Here is how it works.

1) Make more than you spend
2) Dont spend more than you make
3) People must WORK to have want they want,, no free rides
4) Plan for the future,, not for tomorrow
5) Strong Families , moral codes of conduct in society that are strictly enforced.

Now,, do I want to live in as Fascist State like China? No. And make no mistake. China is no more "communist" than my Shiz Tsu is a Kensian Economist.... It is a fascist state.

But there are things we must learn and learn fast, if it is not already to late. STOP THE SPENDING.... Reign in government and regulation. FREE the market.

And oh yeah,, do that,, and watch your home values start to rise, foreclosures fall off and construction begin again.

America has always been a land that is about FREEDOM. Free Enterprise is just that. And if you over regulate and over tax and actually VILIFY private enterprise.. It WILL go elsewhere. AND,, it is. This administration has pulled the welcome mat out for business both foreign and domestic to continue to do business here. And seriously, would YOU want to invest your money in this country right now with a government in power, that is intent on raising taxes at every level, requiring your company to provide every increasingly expensive benefits to employees,,even PART TIME employees. Taxing everying from internet sales to proposing taxing THE AIR in the Cap and Trade bill the President is set on passing.

Someone needs to steal the car keys of all the elected officials in D.C. and change the locks on the offices. SOMEONE put something in the Kool Aid and THEY DRANK IT!

TO DEFAULT OR NOT TO DEFAULT....THAT IS THE QUESTION

2010-03-09T06:13:00.000-08:00

Underwater Homeowners are considering the NUCLEAR OPTION in dealing with the housing bubble crises that continues across the nation and here in South Florida.

Some owners are asking the question, " Why keep putting money into a house or condeo thats going down in value? This is a question that is being debated in many households.

Let me shed some LIGHT on the subject. Why should you keep paying that mortgage?

(1) A Moral Obligation to do so.

Even though walking away from a mortgage could be a temporary good "business" decsion, one must weigh the moral considerations. You signed a contract with another person or party that gave you money that DID NOT BELONG TO YOU, with the promise of you paying it back. Just because that decision is no longer making you more equity is still not a right or morally correct decision to walk away from that contract. When you do walk away, you are leaving those people holding YOUR bag. Fair? No. Hard to justify? YES Remember that you are teaching by doing to your children and those that watch YOUR business ethics and actions. What may seem like an easy out today, WILL at some point catch up with you.

(2) The Lender is likely to collect

Borrowers have to weigh the practical considerations of so called strategic default, They risk being sued by the lender for theunpaid mortgage balance for up to 20 years!

(3) Destruction of your Credit

Those that default on mortgages suffer huge hits to thier credit rating. It will make it difficult, if not impossible to get car loans, credit cards, store credit or good car insurance rates. It can also affect FUTURE employment years down the road when a potential employer pulls your credit history and sees your default. Those that take this option see credit scores drop by 200-300 points. These defaults will stay on your record for at least 10 years. and you will be unable to get another mortgage for at least three years.

(4) IRS Liability

Remember that GREEDY and BROKE Uncle Sam will come looking for you. If lenders forgive the mortgage debt, borrowers who walk away will be required to pay income tax on the forgiven amount!!!

The bottom line to all of this is that a mortgage is a contract that your signed agreeing to pay the money back. If you break that contract a house of cards will fall on you big time. There is NO EASY OUT. Some say that the banks deserve it and that they are the ones that caused this entire mess. Thats only partially true. Lets remember who caused this.

1) The politicians that YOU elected and continue to hold unaccountable for wild speculative borrowing practices FORCED on the banks and lenders so that people who had NO CREDIT and no history of sound financial management could own a home.

2) The loan YOU signed for and possibly fudged on your application to get that loan.

3) The fact that YOU had eyes bigger than your stomach in wanting more than you could afford

4) The fact that YOU ran with the crowd believing that the housing prices would continue to skyrocket and make YOU lots of money...And now that REALITY has set in,.... you blame someone else or a bank for your poor money decision. Own up, straighten up, Shut up.. AND PAY UP!

THE CLOCK IS TICKING AND I TOLD YOU SO!

2009-12-31T12:26:00.001-08:00

U.S. mortgage rates rose in the latest week for a fourth straight week and hit the highest level since August, a closely watched mortgage survey showed on Thursday.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 5.14 percent for the week ended Dec. 31, the highest since the week ending Aug. 27 and up from the previous week's 5.05 percent, according to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.

"Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Based on today's median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000, Nothaft said .

"This translates into almost 50 percent less in interest payments over the full 30-year term," he said.

The rate of the latest week tops that of the year-ago period when the 30-year mortgage rates averaged 5.10 percent.

The 30-year rate had fallen to 4.71 percent four weeks ago, the lowest since Freddie Mac started the survey in 1971.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

Freddie Mac said the 15-year fixed-rate mortgage averaged 4.54 percent in the latest week, up from 4.45 percent the prior week.

The Mortgage Bankers Association last week said U.S. mortgage applications fell in its most recent survey.

One-year adjustable-rate mortgages (ARMs) were 4.33 percent in the latest week, down from 4.38 percent the prior week. The rate on the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, was 4.44 percent, compared with 4.40 percent a week earlier.

HOUSING RECOVERY CONTINUES

2009-11-25T10:24:00.000-08:00

South Florida home sales continue to register strong gains! roughly 3/4 of the properties being sold are priced at less than $300,000.

Sales of existing homes were up 26 percent in Miami Dade County and 32 percent in Broward from a year ago. Condo sales exceeded single family home sales in October. In Miami Dade, sales were up 47 percent from a year ago and in Broward, they were up 68 percent. Dade rose 5 percent in month to month sales from last month. The national increase in home sales rose 10 percent from September to October.

Here is a break down of the current inventory of homes and condos in Miami Dade

Under $100,000 Four Month Supply
Under $300,000 Eight Month Supply
$300,00 to $1 M 21 Month Supply
$1M and over Four year Sup p ly

One of the reasons for these gains is the extension of the one time home buyer credit of $8000. In addtion, inter est rates are at the their lowest level on record. This last month the Treasury sold $30 Billion in T bills at a rate of .040 percent. That is the lowest level ever. That translates into a 30 year fixed home loan rate of about 4.74 percent!!!!!!

This is bad news for savings accounts, but good news for home borrowers. But this will NOT last. This is the lull before a major storm. The Fed is spending TRILLIONS that it does not have. The are borrowing and PRINTING money. That WILL come home to roost in the form of high inflation and of course HIGH interest rates to try to control it. Real Estate is traditionally a good investment hedge against inflation. If you dont have a fixed rate low interest rate loan y et. DO IT NOW. DONT WAIT!! or you will be sorry!

For Americans, This is a two edge sword. Foreign buyers are snapping up the best deals right now with stronger currencies. Americans are still facing decreased equ ity, lost jobs, high unemployment and a government out of control with spe nding. That is the current model.. In an inflationary model, our home prices WILL rise for sure,, but so will our borrowing costs. Foreigners will be still be able to walk in with more valuable currency exchange rates and purchase. If you can purchase now, I would. There are GREAT deals out there right now.. AND the rental market is starting to improve. Hold and Lease if necessary.

RECOVERY ON THE HORIZON

2009-11-10T04:58:00.000-08:00

A housing recovery is fulling in the works. The average price of a home in Miami Dade County has risen by an average of 1.5% each month for the last three months. This includes Condominiums, which have suffered the largest declines in value due to overbuilding.

The nexus of shrinking inventory, the extension of the home buyers credit by Congress, the continued low interest rates and spector of inflation not far on the horizon, have all combined to put a larger number of buyers in the market.

In the Beach front condo market, the largest group of investors continues to be all cash buyers from off shore. Miami is now the cheapest of the largest Latin American cities. That couldnt be said just a few short months ago. Now Miami is a bargain for buyers compared to Buenos Aires, Rio De Janerio and other destination cites.

Real Estate also continues to be a hedge against inflation. The price of gold and other precious metal commodites have truly outstripped the cost benefit ratio that still exists in Real Property. In times past, as will be in the future. Land and Property are a hedge against a falling dollar and a tax haven for write offs, especially if it a rental property.

I keep saying it, but NOW is the time to jump in. The very best of the very best deals are already gone.. But there are still great bargains to be had... DONT miss out.. The best time to make money is when the market is DOWN,, not UP... People get that wrong all the time. Band wagons in investments like stocks and yes, real estate, are usually headed over a cliff if there are to many people jumping on... The market is swinging.. All in the indicators are that the bottm has been reached and the time is now to buy in.

TAKE GUN, SHOOT AT FOOT

2009-10-02T16:29:00.000-07:00

This week the Congress began deliberation on the CAP AND TRADE legislation even while the Health Care debate has yet to be decided and a bill passed through for the Presidents signature. If Democrats in the Senate and House Leadership get their wish, they will pass a public option which by ANY minimal estimate will add an additional $1 TRILLION dollars to the National Debt and eventually drive private insurance out of the market. Any plan that drives out the free market is doomed to inefficiency, huge losses and fraud. Keep in mind that NO government run program has EVER been cost effective.

While major industrial democracies in Europe and the Far East are running away from centralized government control, the US seems to be running in the opposite direction. But what does this have to do with REAL ESTATE you may ask? Very simply and importantly, Interest rates. The cost of money is the life blood of Real Estate. If buyers cannot afford the monthly mortgage payment, properties do not get sold.. Simple. If the government continues to spend money it does not have, then lenders require better returns on lending. That means the Federal Reserve must increase interest rates to attract bond and treasury investors to finance the US debt. That trickles down to you and I in higher interest rates on anything from Credit cards to car loans and yes, 30 year fixed mortgage rates.

The pressure is already building against the dollar because of our incredible deficit. Foreign buyers are demanding higher returns for the greater risk of holding US securities. The danger is, higher interest rates also slow business activity and the nation can ill afford that right now..

SO.... What is the government doing? They are trying to ram through this ill fated bill even though the majority of Americans oppose it. The CAP AND TAX bill is even worse and would add an additional $3,400 a year to the average americans energy expense.

All of these measure will affect the cost of money. ( Interest Rates) They WILL rise. It will also raise the cost of construction at every level. Both of these mean HIGHER PRICES for real estate and higher interest rates to borrow the money to BUY that real estate. SMART investors and home buyers know that inflation is coming. It is already on the horizon and we are seeing it beginning to creep up the cost of oil, which is pegged in US dollars. The less the value of the dollar, the higher the price of a barrel of oil.. Its simple. This is another reason why the G20 is clamoring to replace the US dollar as the medium of exchange because they no longer trust us to keep our financial house in order.

Lets put it this way. If you were to buy $1000 of a persons debt and they paid you 4% interest you would make sure that they had the ability to pay it back and also not borrow so much money from someone else that they got in a situation where they COULDNT pay it back...... The US government goes on the open world market and sells our debt.......by the trillions. Investors are now getting a little freaked out that we simply are spending more than our ability to ever pay back. They want higher interest return because of the higher risk. AND some are even saying... NO... NO MORE LOANS! So, the US is PRINTING MONEY!

REMEMBER.....the ONLY REAL investment that is not PAPER are commodities like GOLD, SILVER, COPPER, and REAL ESTATE. They are the greatest protection against inflation.

If I had to bet the bank on it. I would say that we are headed for a serious round of inflation. No one in Washington seems to have the guts to address the issue and it WILL hit us at one point or another. You cant defy gravity. Its coming.

WHAT TO DO?

1) Lock in to a long term low interest fixed loan on your current real estate. If you cant. SELL!

2) Pick up the great deals from Short Sales and REO foreclosures NOW while there are loan programs and interest rates low enough for you to afford or to keep your expenses low and lease or rent out your investment.

* Keep in mind that in inflationary times, when you are paying a fixed loan amount. You are paying yesterdays dollars with todays inflated value. Its a good deal for the savvy investor. As rents and rates rise, your base cost remains the same.

3) Dont be AWOL on your real estate investments. In a volatile market like this, your attention is important. Watch the markets. Make sure that you have the BEST loan, Make sure you have taken all tax advantages or property tax savings you are allowed. If you are a Florida resident or have Florida property, make sure you HOMESTEAD your property or look at making Florida your primary residence. Planes and the internet can make it possible for many. Also, Florida is only one of 4 states that have NO income tax! That is a huge savings for most.

4) Look at diversifying your investment portfolio that includes CD's, growth stocks, commodities, and of course real estate. Real estate offers tremendous tax benefits by sheltering income as well as giving an annual deduction for depreciation that few other investments can offer. You can shelter your real estate rental income by deducting expenses, management fees, cost of maintenance as well as depreciating the asset, even though it is likely GAINING in value! Dont you love the US TAX CODE! God Bless it and its 12,000 pages!

5) Real Estate offers a simpler way to plan your retirement and give you equity value while receiving monthly income.Its also usually easier to transfer ownership.

When you make these decisions.,, ALWAYS use a professional! My grandfather, a successful businessman, always said that he hired people that knew things he didn't so that their knowledge went to work for HIM! Smart man. You can't be an expert at everything. Todays world is to complicated.. Dont think so? Open the hood of your car and try to fix that engine yourself.

Geoff and I stand here ready to help you with your real estate needs. We have over 25 years of proven successful experience in real estate, both commercial and luxury beach front properties.. Our commitment is to make sure you get the BEST DEAL at the RIGHT PRICE, for the RIGHT REASONS that fit YOUR NEEDS! Give us a call today. Your piece of paradise awaits you and for the time being, its more affordable than you think.

MARKET HITS BOTTOM

2009-09-25T11:05:00.000-07:00

The front page of the Miami Herald announces that the Real Estate Market as truly reached its bottom and the buyers have begun a FEEDING FRENZY of purchases.

As a Realtor, I can tell you.. that is the case. I closed escrow yesterday on an incredibly beautiful Ocean Front residence in Sunny Isles Beach, The Riviera of America. It had a bank value on it in 2007 for 1.25 million. It sold with THREE back up offers,, ALL CASH for $650,000 WOW. THAT is a bargain.. And those types of bargains are being snatched up by the savy investors. They realize that the market forces in play right now are stabilizing real estate in South Florida. The very best deals will be gone within 9 to 12 months and less desirable properties will be what is left. A deal for sure, but NOT the incredible properties that are being sold at 2002-3 levels right now.

The inventory is shrinking quickly. DONT COMPLAIN that you missed the bubble if you dont do what is necessary to get in right now. MONEY IS MADE on the DOWN CYCLE friends,, NOT on the up cycle. UNDERSTAND that and get it in your head. If you jump on a band wagon.. you will be playing second fiddle......always.....

Smart investors LEAD the pack both in selling and in buying. If you are running with the mob, you have already lost the best opportunities.

IMPORTANT LEGISLATION MOVES FOWARD

2009-09-10T06:25:00.000-07:00

VERY IMPORTANT legislation is making its way through the US Senate with support in the US House. This bill would establish a non-profit agency to promote tourism in the US.,

Many international governments aggresively help tourism in their countries subsidizing promotional campaigns and programs. The United States leaves that work up to travel agencies, individual hotels, resorts and attractions as well as some State governments.

" This is SO important to us," says William Talbert III, president of the Greater Miami Convention and Visitors Bureau. It has taken 7 years for South Florida to see international tourism to rebound to pre- 9-11 terrorist attack numbers. Why is this important? Miami is the ONLY major tourist destination in the United States that relies on foreigners for over half of its overnight visitors. Miami is truly one of the worlds top International destinations. Numerous studies have been done that support the economic reasoning behind this funding. Independent audits show that an additional 1.6 million visitors would result from this program. The average expenditure of a foreign visitor to the US is $4,500. That is about 800 million additional dollars into the economy annually. In addition, for South Florida, we find that a number of visitors return year after year and over 40% of foreign buyers of our real estate first came here as a tourist. The top four tourist destination cities in the nation are New York City, Miami, San Francsico and Los Angeles.

SO WHERE IS THIS GOING? UP OR DOWN!?

2009-09-10T05:58:00.001-07:00

There seems to be conflicting data out there regarding just where real estate IS going in this current financial climate. First, the seemingly BAD NEWS..... New foreclosure filings rose 18 percent in Miami-Dade County and 14 percent in Broward between July and August, according to data released by RealtyTrac, a foreclosure tracking firm. Compared to a year ago, new filings were up by 11 percent in Miami-Dade and 19% in Broward.

In August, roughly one of every 109 homes in Miami-Dade and one in every 79 in Broward were in some stage of foreclosure process in August, up 19 percent and 24 percent from July respectively. Those figures include homes that have received a notice of default, have been scheduled for auction sale and were repossessed by lenders.

Banks took back 699 properties in Miami-Dade and 1,414 in Broward in August.

Now for the BIG PICTURE and the BRIGHTENING PICTURE.

1) These figures are a slight up tick in foreclosures which is typical in summer months. Especially in South Florida, real estate sales dip in summer as well as economic activity. High season and job creation take place in the winter with our number one trade, tourism.

2) Absorption of inventory and the average price of a home are the true gage of property and future values. These two indexes are linked. Its simple supply and demand.. The more units available, the lower the price. If absorption is brisk and inventory shrinking, then prices stabilize. Absorption and sale rates have been on double digit rises both in Miami-Dade and Broward for the last 7 months in a row. Inventory of Condo units in Miami Dade have shrunk from a high of about 16,700 last October to just over 11,000. That is a brisk absorption rate.

Median prices of condos and homes in Miami Dade have stabilized over the last 4 four months which is an encouraging sign. Since this stabilization is taking place in the summer months, that is a very good sign. 74% of sales have been of foreclosures, Short Sales or REO's. There have been many overseas investors with all cash deals snapping up the best properties.

I have one property that is in escrow that was appraised by the bank at 1.3 million in 2007. It is in escrow for $650,000 and is a Class A beach front 2,100 sqft condo in Sunny Isles Beach.

Truly, the deals are at their best. The market is beginning the turn... Every broker I have spoken with sees this. There are many buyers back in the market but they are picky, shopping for the best deals and usually have a heavy cash investment. What I AM seeing in the last several months is multiple offers on properties as the very best deals dry up. And yes, I have even seen buyers BIDDING against each other, driving the price up.

Interest rates are at their lowest levels in MANY years, Property values are almost at replacement values for land and materials. And of course, like all business cycles, this will not last. Inflation is already on the horizon with all the government spending. The dollar has been weakening for weeks. Watch the price of OIL and you will see where we are headed. OIL is traded and pegged to the US dollar. As the value of our currency erodes, the price of oil will go up as will REAL ESTATE and INTEREST RATES. NOW IS THE TIME! You heard it here first.

DO THESE ABC's

(A) If you are in a mortgage at more than
7% or in an ARM loan. REFI NOW!

(B) IF you are looking for a new property, get on the 8 ball NOW. It will take you months to close and if you are financing, you are running the risk of a higher interest rate on your mortgage.

(C) GET RID of all revolving debt on cards etc. Whatever you have to do to acheive this.. DO IT. Those rates are headed UP and they also affect your credit rating AS those rates go up and may hinder you in getting a home loan.

Walking over Adversity

2009-09-01T17:01:00.000-07:00

Adversity, whether the financial times, co-workers, the boss, or the simple stress of the work load can rob a business person of time, attention and emotional strength.

To overcome these and a host of other hurdles, the REAL LEADER in the business world will step up to the challenges with a CHANGE OF MIND! Having the right mind set is critical to success in business regardless of the business climate. Keep in mind that during the depths of the depression, still 80% of the nation was employed and fortunes were still made. You have a choice.. Give in to adversity or simply walk over, or around it.

1) Think What is Possible, NOT what CANT be done

Victims make themselves so. They come at problems with a " there is nothing I can do about it" attitude. Well that is true in one sense.. If you DO nothing.. you will GET nothing. There is always something you CAN do and NOT give up, or give in. NEVER accept NO as the final answer.....EVER.

2) Stay Positive

Be a person who, and even if necessary forcing yourself to do so, says......" The glass is half FULL, not the glass is half empty." Some people, many people, are raised with a half glass mentality. Successfull people shake off that old thinking and always look for the opportunity in the pile of mess or adversity. Even in the basement barrel of life, there is always a gem waiting to be plucked. If you just assume there is nothing of value to learn or to be gained from a situation, you will never find the gem hidden in the garbage.. SOMEONE ELSE with the right attitude will steal your opportunity.

3) Learn

Knowledge IS power. Never ever stop learning. Dont get lazy at what you do and run on the automatic cycle. You will be quickly eclipsed by others that take the initiative to get smarter at what they are doing. When business is bad, take the time to learn more about what you do... how to do it better and come up with innovative ways to do what you do, cheaper, smarter and more effectively. There is always another way of trying something. It doesnt hurt to try.

4) Set a Target

When you go on a trip to some place you have never been, do you just get in the car and start driving? How stupid is that?! You pull out a map.. or if you are smarter, you go on Mapquest and get directions and ALSO what the traffic conditions are so you avoid time delay and ADVERSITY. No one really achieves a goal without setting the goal first. Can you imagine a race where the finish line is...well....... ambiguous? The runners would be wandering all over the track. That might be entertaining and a good laugh, but I dont think the breakfast of champions would ever want the contestants on the front of a Wheaties box. Set definable goals.. Even if for just ONE DAY and stick to it. Check off the progress and make yourself succeed by determined choice.

5) Take Responsibility

I love this one. A real Leader never passes the buck up or down. Passing UP the buck means blaming bosses or managers for your own failure or lack of success. Remember the victim thing? STOP IT. GROW UP! Passing it Down means blaming those below you for your failure.. "if only they had done it the way I told them....." So why didnt they? Its still YOUR repsonsibility. Be a better mentor and get it right. OR Stay and DO IT right no matter how long it takes. You are only helping yourself by, without complaint, doing things the right way. When you do that, the job gets done and those watching learn from your success. Its as simple as walking through your office parking lot and picking up the trash on the way in instead of waiting for "THEM" to do it. I never actually met "THEM" Im sure they are the Mother Theresa of trash removal. But they have never shown up at my office yet. If my staff sees ME picking up other peoples CRAP in the parking lot every day ( and this includes thier crap) they will get the idea that this is the CULTURE of our business to be the best and look the best at all times. If they dont catch on...then there you go...you are flying with Turkeys. Either they morph into Eagles by your example or be stuffed for Thanksgiving.

Attitude; RIGHT attitude will always eclipse Adversity.

HOME PRICES TAKE FIRST RISE

2009-08-25T11:23:00.000-07:00

Home prices across most of the country have started to rise from the depths of the housing slump, a critical trend that will help stabilize the broader U.S. economy.

Across the Nation, prices in the second quarter posted their first quarterly increase in three years, according to the widely watched Standard & Poor's/Case-Shiller's U.S. National Home Price Index.

The monthly index of 20 major cities also rose from May to June, with Dallas and Denver clocking their fourth-straight increase. Only Detroit and Las Vegas saw prices fall in June.

The U.S. National Home Price Index rose 1.4 percent from the first quarter to 133, though was still down almost 15 percent from the second quarter of last year.

Home prices are at levels not seen since early 2003. Prices, on a seasonally adjusted basis, have fallen 30 percent from the peak in the second quarter of 2006. The jump in residential home sales in the Miami/Ft. Lauderdale area took had the largest one monthly increase in the last ten years at 7%

The monthly index of 20 major cities increased 0.7 percent to 142 from May to June, the second straight month the index didn't decline. It was still 15.5 percent below June a year ago.

WHAT IT SHOWS: The 20-city index is a three-month moving average of repeat sales of a designated group of single-family homes in each city. By measuring the sales price of the same properties over time, the index prevents the data from being skewed by a change in the types of homes sold. Sales between related parties, such as family members, are excluded because they may not reflect true market values.

The Case-Shiller quarterly index is a composite of home price indexes for the nine U.S. census divisions.

WHAT IT DOESN'T SHOW: The indexes only measure price data in 20 major metropolitan areas in 15 states and the District of Columbia. So many areas of the country are not represented.

WHY IT MATTERS: Investors closely watch the Case-Shiller indexes to gauge the level and direction of home prices. The indexes include a broader mix of properties compared to the index created by the Federal Housing Finance Agency. That index excludes many high-end properties, as well as homes bought with riskier mortgages or all cash.

THE QUOTE: "For the second month in a row, we're seeing some positive signs," said David M. Blitzer, chairman of the S&P index committee, adding, "There are hints of an upward turn from a bottom."

In other words, IF you want to make a smart investment, buy a real asset like Real estate as a hedge against inflation, but that also has income producing possibilities.

2009-08-08T14:13:00.000-07:00

New Rules to Help Homeowners "Squeezed" by falling Equity

More homeowners suffering mortgages larger than the value of their home can now trade in their mortgage for a more affordable home loan, under a broader Making Home Affordable refinance and Mortgage rule.
Borrowers current on payments with Fannie Mae or Freddie Mac guaranteed loans could be eligible for refinancing into new loans even if they owe as much as 125 percent of the home's current value.
Previously, the Home Affordable Refinance Program's loan-to-value limit was 105 percent.
It's the latest effort by the government to help more homeowners refinance their mortgage at a lower rate and reduce their monthly payments. The idea is to induce homeowners that ARE upside down in their equity to stick in there and keep the property by refinancing to a lower rate and thereby paying lower monthly expenses on the property.
Also, if the existing mortgage was written without mortgage insurance, the new loan won't be burdened with the extra cost.
Fannie Mae and Freddie Mac loans typically require mortgage insurance when the loan is more than 80 percent of the home's value. Of course, if the current mortgage has mortgage insurance and the new loan is 80 percent or more of the home's value, mortgage insurance comes with the deal.
As usual, high-coast areas including many in California, New England, New York and most resort and second home areas such as Florida won't see much relief. Until the Fannie Mae Freddie Mac conforming loan limit was raised in high-priced areas last year, high-cost area homes were too expensive to be purchased under Fannie and Freddie guidelines.
The new 125 percent limit also may not apply if a second mortgage combined with the first exceeds the limit. The new deal also doesn't allow homeowners to take cash out.
The higher loan-to-value ratios are available now to qualified borrowers who apply through their existing servicer. After Oct. 1 a homeowner can shop around and refinance through any Fannie or Freddie lender.
To check your eligibility for a refinance under the new provision, go to Making Home Affordable.

Do You Really Know What You are Doing in Today's Market?

2009-08-01T06:27:00.000-07:00

The current sales market continues to be brisk compared to last year as we posted the 10 straight month of sales gains in Miami-Dade County.

829 homes and condos sold in June with sales prices that were 89% of asking price. The average sales price was $510,000 and the median price was $280,000 and stayed on the market for 128 days. 71% of the recorded sales were REO's bank own foreclosured or short sales. This figure has gone down slightly each month for the last four months as inventory of the best prices properties begins to dry up.

Overall, the HOUSES LISTED FOR SALE decreased relative to last year. In June 2009 there were 10,465 compared to 17,058 in June of 2008. The NUMBER OF HOUSES sold in June 2009 was 846 compared with 508 in June of last year.

This all continues to be good news for the consumers and and home buyers as well as the Real Estate industry as a whole. One very positive sign is that for the last two months NEW HOME sales have increased nationally. New homes, of course, but construction workers and contractors to WORK and that is certainly welcome news.

The National Associatio of Realtors has great advice in this current Real Estate market that should be heeded by any prospective homebuyer.

Here's how to get ready to be and remain a homeowner.

Create a wish list. Write down housing wants and needs. Include all the physical characteristics you want or need. Include style, size, layout and room configuration. Look at the number of bedrooms and bathrooms, and the basic amenities you must have. Include critical features such as location and services and a home's proximity to good schools or public transportation lines.

Browse for housing. greghardcastle.com offers home valuation features and neighborhood data on trends in local markets. Use features to determine how a listing compares with nearby, comparable properties in terms of value, actual sales prices, home features, neighborhood characteristics, and more. In other words.....GET SMART. It doesnt take that much to get alot of very important information on the property and area that you are interested in.

Work with an expert. Finding a real professional who will represent your best interests can make the difference in location, negotiating the best offer, and closing the home of your dreams. Look for a full time real estate agent, who has uploaded telling photos and videos of their listings and look for agents with good Web sites to market your listing.

Get the complete picture before you visit. You can't know everything about a community from an online listing. Schools, crime, and proximity to shopping and work all impact property values. NAR says talk to a Realtor and go to Realtor.com to explore communities.

Make sure the property details are reliable. Buyers need know when a listing has experienced a price change. Look for Web sites like Realtor.com that updates listings frequently, including price changes. Fresh and reliable information is critical. Realtor.com time stamps listings to help buyers make better informed decisions. Get email alerts and stay on top of changes so you can be first to act.

Most of the above mentioned points are steps that an experienced Realtor will walk through with you. Why leave one of the most important financial decisoins you will make in your life time to chance or a novice. And in the end.....thats why IM HERE!