Reality of Real Estate      Novel Idea?        Part 17           Merrimack JOurnal  January 2008

 Dr. Anthony G Ziagos, Sr.

I had a conversation recently with another real estate professional and I began to think about what we were discussing. I called a few mortgage lenders and asked their opinion of our conversation. I then called a few real estate appraisers and asked for their opinion. We all arrived at the same conclusion. Our consensus would provide a real solution to avoid a reoccurred of the sub-prime mortgage dilemma. Only lend money to qualified buyers. AMAZING !!!

With just a few telephone calls and a moderate amount of discussion we could save the world!! It is my understanding that most local lenders always had funds available for qualified borrowers and still do. We have also learned that part of the problem might have occurred due to wall street investors willing to risk funds into a high yield,high risk lending pool that did not work out the way the wanted it to. Upon further investigation we have learned borrowers who could not afford to buy property were given mortgages that would "adjust" and neither the lenders or the borrowers paid attention to the disclaimers or the potential for problems disclosed in the mortgage instruments. Is it also possible someone was not totally honest when they filled out the paper work? <look of horror on the writers face>. Oh my !!

Thousands of hard working families will continue to work hard and sacrifice to keep their payments current. Some honest hard working people will be hurt by the economic downturn, as they are in every economic cycle. It is truly unfortunate that people are in this situation. It is our opinion, however, that neither the government nor the tax payers should bail out an investor or a borrower due to their lack of good judgment.     ©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate     ~     Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities     ~     Seminars and Lectures Full Day & ½ day

visit our web site:     www.Middlesex1031.com

Reality of Real Estate Bid and Asked Part 11                                               Merrimack Journal      July 2007

Dr. Anthony G Ziagos, Sr.

     Anyone who has invested in the stock market understands the concept of Bid and Asked. Supply and demand determines the price of anything of value. The value of Real Estate like Stocks and Bonds fluctuate with supply and demand. The Asked price of real estate is the perceived value of the seller and what they want in exchange for their property. This perceived value may be real or just something that sellers imagine based on their own preference. The Bid price is what is offered by a buyer who is willing to invest their resources in exchange for real property. Circumstance will determine if a buyer will pay more or less than an appraised value or what a seller is asking. The price is also influenced by the terms of the sale or if a seller is willing to share the risk associated with uncertain or unknown factors regarding the property. What makes real estate different than stocks and bonds, very little. Each one has an opportunity cost or "holding cost" depending on the situation. Usually holding real estate cost more than paper securities, however, the potential gain, short term or long term may outweigh the cost. The "unknown factor" is the gamble. Without a crystal ball, flippers, speculators, and investors always face a risk when buying real estate. Like any other investment, there is risk and reward. If you HAVE to sell, you get what the market offers. When a seller and a buyer cannot agree there is no transaction. Over supply of sellers willing to exchange real estate for dollars and lack of demand from buyers is what we are faced with in the current market situation. Transactions are made when two people agree based on their circumstance and minimizing unknown factors.

Here are two real life examples of current market situations. Both properties need work to move in. Property A is asking $325,000 for appraised property. Buyers 1, offered 260,000, buyer 2 offered 275,000 and buyer 3 offered 265,000. Seller said no to each one without a counter offer or reason. It appears they want to own this property for a long time, costing them $3,500 per month to carry.

Seller B is asking $225,000 for city property. Buyer offers $150,000 and seller counters at $190,000 they are still talking but not close enough for a transaction yet. Seller B appears to be more in touch with reality.

Based on the current market conditions there is a lack of demand for property at current asking prices. Appraisers appear to be at odds with buyers, sellers and lenders. A lack of understanding of the economics of the real estate market, the result slowdown in the overall economic landscape is further exacerbated by inaccurate interpretation of market conditions and economic reality of the marketplace.

Perhaps price is not the problem with the transaction? Maybe terms and conditions make it difficult for either party to accept an offer? High asking prices could be accepted if buyer and seller were to agree on terms and conditions that take into account uncertainty of the market and minimizing unknown factors. Again, write the offer and start negotiating a transaction.©2007 Middlesex Media Exchange/ All Rights Reserved

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Real Estate Counseling, Educational Opportunities     ~     Seminars and Lectures Full Day & ½ day

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Opportunity          Merrimack Journal       April 2008

 Opportunity

Dr. Anthony G Ziagos, Sr.

Opportunity is the key word today in the current real estate environment. For the last 18 months we have been offering our readers knowledge and information on how to help them navigate through the current sea of turmoil.

As a real estate professional I am distressed to see all the negative and misleading information that is circulating in the main stream media. Here are some reality of real estate facts. Qualified buyers can ALWAYS obtain funding to purchase or refinance real estate. People who write offers get to buy real estate. Property that offers good value to a buyer will ALWAYS sell. Market conditions in Arizona and California are not necessarily the same or relevant to what is going on in New England. Of course there are many more reality checks than these, however, a buyer or seller must work with a qualified professional to determine the "circumstance" and only then can they offer solutions that are right for you.

Buyers who are actively seeking real estate opportunities do not see a distressed market, they see an opportunity to purchase property at great prices. Lease rates have dropped in the last year offering tenants an opportunity to save money. Despite the lack of appreciation in the last few years property is still being offered for sale and transactions are closing every day. Over the long run real estate is one of the best investments you can make. Consult with a real estate professional so you can take advantage of opportunities in todays market. ©2008 Middlesex Media Exchange

 Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate      ~      Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities      ~      Seminars and Lectures Full Day & ½ day

visit our web site:    www.Middlesex1031.com

Reality of Real Estate     Part 20                BUY BUY BUY                  Merrimack Journal        January 2009

BUY BUY BUY

Dr. Anthony G Ziagos, Sr.

Now is the time, this is the place BUY BUY BUY. Real Estate offers great value if you buy it right. Make your profit when you buy rather than waiting for a sale. In all likelihood, it may not get much better. Any further declines will be marginal at best over the next six to twelve months. Favorable interest rates, under 5%, indicate the time to buy a home or invest in a single family house for income and future growth is right now. We made this recommendation in September of 2007 and we continue to see excellent values and financial packages that make economic sense. The decline in values since September would have been offset by income generated and excellent posture for future refinance given continuation of attractive rates. Qualified buyers will experience an advantage in current economic environment. Lease with an option to buy is another strategy that will yield great dividends.

When the real estate market price curve intersects with the rental market rate curve it signals an open window to buy real estate. EVERYONE has to rent or live somewhere. This article is not intended as legal or accounting advise, however with the guidance of a real estate professional, you can determine where to buy or what strategy to use that best suits your situation. It is a signal to act before its too late. When rental prices are greater than the cost of owning a home it is time to BUY BUY BUY. Any further declines in interest or property prices will not effect the mechanics of a transaction. When the world wakes up, it will be too late and prices will begin to climb once again and the cycle will continue.

Interest rates should be available, in the 4.5% range, and the cost of an average house in many cities and towns is below rental market rates. House sharing can work for many families and at less than $1000 per month anyone who wants to own should be able to own.

©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate   ~   Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities    ~    Seminars and Lectures Full Day & ½ day

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Dr. Anthony G Ziagos,Sr. for International Realty Plus

Fort Apache, AZ Talented people never go out of style. The economic situation in the real estate market has caused many brokers and salespeople to evaluate their career opportunities. A professional who understand the real estate market knows that in the long run they will succeed. This cycle has been a bit more of a challenge than the last few we saw in the early 90's and even before that the late 70's when interest rates were above 16% (Can you even imagine that!). Real Estate professionals learn and understand what drives the market and how to use that market force to your advantage. Form fillers, Order takers and phone watchers will fail and move on to what is heralded as the next get rich opportunity.

Those who succeed in real estate market can succeed anywhere by following principals of success. These are the people we are looking for. Stay in real estate, expand your earning potential and share your talent by offering franchise opportunity in your market. Paul Tatham established International Realty Plus in 1994 and is ready to expand again. Veterans of the real estate industry will remember all the flash and growth surrounding the establishment of a new franchise into a market when it was just "another idea". Paul has created a franchise that will help you and your associates grow into the next decade. We all realize how the Internet has changed real estate industry forever. To keep pace with changes in the industry new ideas and a restructuring of the real estate office is the next frontier.

"Jump on the train before it roars our of the station." If you want to improve your own business model, help others compete in the new real estate environment, or just generate a new revenue stream, several State and Regional territories are still available. Call Paul Tatham TODAY, 1-800-FOR-SOLD (800-367-7653) or E-mail tatham@iirp.com. In addition to franchise opportunities, Paul is looking for Area and State Directors. "Border to Border and Beyond"^TM

©2008 Middlesex Media Exchange/All Rights Reserved

Opinion News Service June 12^th, 2008 Merrimack Journal        Reality of Real Estate

 Solution for Foreclosure Stampede

 Dr. Anthony G Ziagos, Sr.

Any Government participation in a Bailout Program for mortgage lenders facing high foreclosure rates in our opinion is a slap in face of every hard working person who struggles to pay their mortgage on time and sacrifices to do so. Economic down turn affects everyone in this country. We ALL have to make tough decisions and decide to have one item or another but not both. Two scoops or one or maybe none this week. Hard working people will suffer through no fault of their own. Others, who bit off more than they could chew will lose out also, and rightfully so.

In every industry there are those who take advantage of the weak, and walk a fine line between fraud and a legal hustle. You can never pass enough legislation or industry rules to protect the consumer against their own bad judgments. No matter how good the sales talk is, at some point, the buyer has to bear some responsibility for their actions.

In our opinion, the only logical step for the government to consider is a stop gap measure to halt any foreclosure until a hearing of the facts surrounding the loan, mortgage instrument, and pending foreclosure action can be determined. Both parties can contribute to the cost involved for a judge or magistrate and court time. If one party is found to have violated the law they can be sanctioned. A judge or arbiter can determine is short order if a foreclosure is warranted or the parties have to live within the statues of the law. Even the cost of this solution will be pale in comparison to another lender bail out at taxpayer expense.

©2008 Middlesex Media Exchange/Opinion News Service

Two Faces of Anything    Part 19     Merrimack Journal   May 2008

Dr. Anthony G Ziagos, Sr.

In the Chinese language, characters are used instead of words. To the untrained eye they appear to be complicated and difficult. To the people of China, it is normal and easy to understand. Twenty years ago, at a real estate seminar, I learned an interesting piece of information and to this day I refer back to the wisdom and diversity of that observation. The Chinese character used for the word "Crisis" and the word "Opportunity" are the same.

Observation and perception are a lot like crisis and opportunity. When you observe an event you look at it based on your perception and your values. If you do not understand the history of an event or why it occurred your view is limited and bias. You cannot see the big picture if you do not have knowledge and information about the past.

Anyone observing an auto accident can attest to this. Same accident, two witnesses, two different stories. If you own a large block of "Oil Company Stock" your view of the oil crisis is very different than someone who has to fill their tank to get to work. If you depend on dividends from a pharmaceutical company for your retirement income, you may be less aggravated about the cost of prescription medication. If you want to buy a house you are more concerned about good value and less concerned about the seller's circumstance.

During these difficult times and economic crisis, opportunities are plentiful. People who are resourceful, creative and hard working take advantage of this time to become more efficient and look for ways to conserve and make every dollar count. The lazy and unimaginative and those who prefer entitlements to work, sit and moan about how bad things have become. ©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities

Seminars and Lectures Full Day & ½ day

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www.Middlesex1031.com

Use this article to help get that giant commercial listing that needs experience and other players to close.

What's it worth?

Dr. Anthony G Ziagos, Sr.

The answer is not so simple. Just ask George Tournas of Red Stripe Inc.. With over thirty years of experience, his answer is always the same, to whom?

The popular PBS television show "Antiques Road Show" has made the public aware of the potential value of merchandise. While this particular show deals with antiques and personal property, the current economy and tight credit markets make business owners more sensitive to the value of their machines, their manufacturing equipment and the value of their business as a whole. Documented valuation is important for Personal Property Taxes, Lines of Credit, Estate Valuations, Tax Write Down and Liquidation. This is just a few examples of what George does for the business community. Knowledge and information is the key to preventing a costly mistake in both the commercial sector as well as the private sector.

Red Stripe looks at what you have, compares your equipment or business with sales records and auction data of what has recently sold across the country. They then analyze the in place value or "quick sale" scenario and provide you with documented valuation that your banker, lawyer accountant or the business owner can rely on to determine "What's it Worth". For more information contact george@redstripeinc.com

This article originally appeared in the December 2007 Edition of the Merrimack Journal.

©2007 Middlesex Media Exchange/All Rights Reserved

October, 2007      Part 15 Auction or one hand tied?                              Merrimack Journal

Reality of Real Estate  Auction or One Hand Tied? Part 15

Dr. Anthony G Ziagos, Sr.

There has been much reported main stream media about rise in foreclosures. The foreclosure process occurs when a debtor fails to honor their commitment to a lender. The lender must protect their financial interest and the collateral that was pledged for a loan. Terms and conditions of a loan are spelled out in advance as well as default and recovery procedure. There are numerous options prior to Auction of property that can be considered. If lender and borrower cannot agree on a resolution, property is auctioned off to the highest bidder. Despite every effort that a lender and borrower make an auction sale may be the only resolution. Auctions do not necessarily mean distress sale. In Massachusetts the regulations and rules that must be followed are very specific and designed to prevent errors during a stressful time.

I can tell you from experience, sometime the rules get in the way of resolving the issues. No one can blame anyone for protecting their rights. Every auction presents its own set of circumstances that may or may not contribute to the desired result. Mortgage holders refuse settlement offers in hopes of getter a higher bid an auction. Sellers may or may not cooperate during the sale procedure. Due diligence and "AS-IS" are frightening concepts for most buyers. Cash requirement is the biggest hurdle to a successful auction sale. Most lenders miss out on a great opportunity to fund buyers for this type of sale.

At a recent sale the mortgage holder refused offers on a defaulted loan the the $250,000 range. After six months the property was auctioned and the mortgage holder only got $ 180,000. Another example was an auction sale, subject to confirmation, that only produced a high bid of $150,000. The lender declined to sell and subsequently resold the property for $250,000. The original asking price was closer to $300,000.

Rarely are canceled auctions reported. I have been to several sales where the mortgage holder didn't even show up for the sale or report a settlement prior to the sale date. Lenders buy back property at the auction sale to "perfect their right and title" then subsequently offer property for sale hoping to cut loses but offering a potential buyer a less complicated sale even after incurring more selling costs.

The auction process is not for the amature. Due diligence and experience is at the heart of successfully buying at auction.

©2007 Middlesex Media Exchange/ All Rights Reserved

BUY ! BUY !! BUY !!!

Dr. Anthony G Ziagos, Sr.

September 2007 is here and we are advising all of our clients to BUY BUY BUY ! The cycle has reached near bottom levels and the banking system will not allow red ink to flow much longer. When main stream media reports the market has bottomed out, it will be too late to profit from the current real estate cycle. In May of 2005 when we advised our clients to sell the philosophy was; "There is no profit until you sell." Paper profits were erased quickly and those that waited saw the real estate market prices decline as much as 25% from their peak. Real Estate is a long term investment, and it is cyclical.

It is our opinion that NOW is the time to BUY and your new philosophy should be "Make your profit when you purchase real estate not when you sell." Any further decline in real estate values will be marginal. Interest rates will decline over the next 30 to 60 days and with winter weather approaching in the Northeast sellers MUST sell or dig in for another six months.

Buyers should try to obtain extended closing dates and terms if you cannot buy at Hugh discounts. If you have cash do not be afraid of leverage in this market. The market will begin to accelerate upwards when rates drop and public perception is convinced the bottom has arrived.

As always, look for superior locations, value added projects, or expanding square footage without additional land costs.

For the more adventurous, syndicate funds with a few friends. Look at fixers and bank owned turn around transactions. Real Estate cycles and there is no profit until you sell.

(c)  2007 Middlesex Media Exchange / All Rights Reserved