Canadians Are Buying California (and they want the Stanley Cup Back) - 10/21/07 12:53 PM
Canadian investors are looking at California real estate, as a good long-term investment, because of the devaluation of the US dollar.  Simply put, the falling California real estate market, combined with a weakened and leveraged US economy, is giving Canadian investors a double whammy of a chance to own prime, California properties, cheap.  This series will attempt to educate Canadians, looking to buy California properties. 
How does the exchange rate work?
In January of 2007, a Canadian investor, buying a $300,000 (US)  property in Long Beach, CA, , would have to pay $352,600 (Canadian).  That was based on an exchange … (7 comments)

Irish Investors: Pot O' Gold Lies beyond the Aer Lingus Cities - 10/21/07 12:47 PM
Irish investors have flocked to American real estate for it's potential and relative low cost.  Ireland has experienced an economic revolution over the past 15 years.  The transformation from agrarian to industrial to information-based economy has catapaulted the Irish to the second highest per capita income in the European Union (second to Luxemborg). 
The property inflation in the Republic of Ireland has been equally as astounding.  The growth in the construction industry and estate broking affects some 1 in 5 Irish workers.  Today, the Irish property markets are experiencing a similar fate as their American cousins:  easy credit policies combined with … (1 comments)

Success Was Subprime Market's Worst Enemy - 10/20/07 08:54 PM
The problem? Lenders made loans to San Diegans, in 2005, based on guidelines that were meant for Houstonians. San Diego appreciated some 100% or more in the period of 2000-2005; far above the expected appreciation rate. Reversion to the mean theory dictates that underperformance is in the cards for San Diego for 2006-2010 while out performance is expected for Houston. The national data hid the fact that the riskier loan product was made, an a very risky asset in San Diego, in 2005.
Money is ammoral and naturally flows to higher returns. Residents of industrial cities, like Philadelphia, took advantage of … (4 comments)

You Magazine- October, 2007- Reprinted With Permission From Loan Toolbox - 10/19/07 02:00 AM
… (6 comments)

Millionaire Real Estate Investor Series: Personal Limiting Beliefs - 10/18/07 11:50 PM
A Millionaire Real Estate Lender is a mortgage advisor who knows how to help Millionaire Real Estate Investors build their net worth.  Recommending appropriate loan solutions, for aggressive investors in the wealth acquisition stage of their life, has been a strength of mine since I started my lending career.  I draw upon my background as a securities broker, apply suitability principles, and integrate the loan into a financial plan.  This series will deal with the principles taught in Gary Keller's book, The Millionaire Real Estate Investor. 
The Chapter about MythUnderstanding will be broken into two parts:  Personal Myths and Investing Myths.  … (1 comments)

Millionaire Real Estate Investor Series - 10/18/07 12:33 AM
A Millionaire Real Estate Lender is a mortgage advisor who knows how to help Millionaire Real Estate Investors build their net worth.  Recommending appropriate loan solutions, for aggressive investors in the wealth acquisition stage of their life, has been a strength of mine since I started my lending career.  I draw upon my background as a securities broker, apply suitability principles, and integrate the loan into a financial plan.  This series will deal with the principles taught in Gary Keller's book, The Millionaire Real Estate Investor. 
 
The Overview chapter introduces the reader to Mr. Keller's philosophy towards succes as a … (6 comments)

Mortgage Rates Report: October 17, 2007 - 10/17/07 07:36 PM
Recommendation Change:       It's time to start floating those loans!  We should be watching mortgage rates drop lower these next 3-7 days. 
Do not lock in your mortgage rate at application; lower rates may be here next week. 
Two big numbers came out today:
1- Core CPI- That's the inflation number without the oil and food prices figured in, was lower than expected.  This means that prices of goods and services are feeling the pinch of higher oil and food prices
FULL REPORT 
… (4 comments)

Dastardly Diatribe Disguised As Disclosure - 10/16/07 01:08 AM
Broker-controlled blogging was a hot topic this weekend. I tried to raise some eyebrows (and awareness) with my speculation about the internet land grab the employing brokers and banks might try.
I think a few things might have gotten lost in the translation. While I said that the brokers and banks will claim that it is a compliance issue, I believe that the REAL reason will be that they want to control the marketing channel to the consumer. Here’s what I said, over on Active Rain:
That will put pressure on the large companies to provide higher compensation to the more … (23 comments)

Bloggers: Be Afraid of the Big, Bad Broker (or Bank) - 10/11/07 07:21 PM
The real estate weblogging phenomenon is catching fire like desert timber in the summer.  The Active Rain Real Estate Network, the little engine that could, has grown from less than 5000 members to over 50,000 members in a short period of time.  The attraction?  Talking about the future around the virtual water cooler. 
Long Beach Realtor, Laurie Manny, said, "The beauty of real estate blogging is that it gives agents access, now.  Access to people whom we never would have dreamed of meeting a year ago."  Ms. Manny was talking about the quick but meaningful connections she made through her participation … (79 comments)

MortgageRatesReport.com: October 10, 2007 - 10/10/07 08:31 PM
I'm often asked how I come up with my advice to lock or float the mortgage rate when home buyers read the Mortgage Rates Report.  Well, I read a lot, that's for sure.  I read Bloomberg.com and the Mortgage Market Guide research which gives me access to real-time quotes of mortgage-backed securities.  The charts I review, of mortgage-backed securities prices, give me an idea of what the short-term trend looks like.
 
Let's look at today's chart:
 

 
 
This chart show the prices of highly-traded mortgage-backed securities.  I show it with permission from the Mortgage Market Guide.
Two things … (0 comments)

Where' the Bottom of the Burbank Real Estate Market ? - 10/10/07 02:01 PM
I spoke with Burbank real estate specialist, Ana Connell, today.  Ana's "other life" paralleled mine; she was a manager for a securities brokerage firm before she started her career in real estate brokerage.  We chuckled as we talked about the principles of technical analysis and how it might apply to residential real estate .  I want to share the product of our discussion with you, the Southern California property buyer.
I think that the real test of proper pricing for Southern California real estate is revealed when we analyze properties like a long-term investor may.  We are getting close to parity here.  If a property … (7 comments)

Wall Street Learned a Lesson From the Dept. of Homeland Security - 10/10/07 04:03 AM
I was in Las Vegas, a few months ago, for the Strategic Equity conference.  Three days of mortgage speakers and some Vegas living had me ready to get home to my wife and daughter, on Friday afternoon.  I  blew off the last speaker , jumped in a cab, and headed for Mc Carron Airport.  I rushed to the gate to see if I might make it back to San Diego on an earlier flight.; I missed it by five minutes.  "No problem", said I, "Can I check in for my originally scheduled flight?"
 
That flight was cancelled; I was pushed … (2 comments)

MortgageRatesReport.com: How The Suspendered Mortgage Guy Found A New Home - 10/09/07 12:14 AM
Brian Brady is that mortgage guy, in suspenders, on the internet.  He's found a new home, too.  Here's a peek at my online journey which ended me up here, on MortgageRatesReport.com. 
I started to build my online presence, way back in 2004, on LinkedIn.  I was one of the early adopters.  I was the lone mortgage professional amidst tech folk and headhunters.  I looked for ways to identify with the LinkedIn community and found that we had many things in common.  Soon, I was meeting people from all over the country and building a network. 
The MySpace phenomenon was catching fire … (8 comments)

Portfolio Lenders Are Replacement Players - 10/08/07 10:37 PM
An excerpt:
The aforementioned portfolio lenders are the equivalent of the replacement players. They took market share from the superstars and actually started the get a bit greedy by raising their rates. When they started to get a significant portion of the cream-puff loans, the superstars on Wall Street stood up and took notice.
Flailing lender Countrywide was the first to cross the picket line. Desperation reigned in that house as they repositioned their warehouse lending capabilities away from the commercial paper market and into their federally-chartered bank. A risky move indeed. If you’re a .232 lifetime hitter, in danger of giving … (2 comments)

Downtown San Diego: Good, not Great - 10/08/07 07:56 AM
Downtown San Diego condos were the rage for speculators at the tail end of the real estate boom.  The thoughts were that values, of an emerging downtown, would fall in line with cities like Vancouver, San Francisco, and Seattle (based on a price per square foot valuation); that still may happen.  If that's true, we may see downtown San Diego condos appreciate some 25% over the next 5-10 years.
That could fetch you an annualized return of 7-10%, much of it tax advantaged.  That just isn't enough for the risk you take when you buy a downtown San Diego condo as … (7 comments)

Show Me a Good Deal In...Las Vegas! - 10/07/07 11:45 AM
Renee Burrows of Nevada Realty Solutions presents a 4-plex in the City of Las Vegas.  It is offered for sale at $455,000.  It is located near the Strip and UNLV so it is convenient for both casino workers and students.
Annual Income Analysis:  3 two bedroom units, rented at $625/mo. and 1 three bedroom unit, rented at $725/month.  The property makes $800 annually in other income (laundromat?).  They assume a vacancy factor of 5%.  Total annual income= c. $30,000
Annual Expense Breakdown:  Taxes at $1,648, Insurance of $900, Maintenance at $400, Utilities of $1,500, and Trash of $144.  Total Annual … (6 comments)

Show Me A Good Deal - 10/07/07 01:50 AM
Denny Oh impressed me with this analysis of the downtown San Diego condo market. Jeff Brown continually astounds me with his ability to identify growth investments in residential real estate, across the country.  Greg Swann is picking off pricing disparities in Phoenix.
There is an old question I used to get when I traded securities.  "Is this the year of the market timer or stock picker ?"  That question was posed to me every year by various clients.  This year, the question is no different except it's geared towards residential real estate.You always make money when you BUY the investment, not … (18 comments)

MortgageRatesReport.com: October 5, 2007 - 10/05/07 10:55 AM
Our fear from Wednesday was justified.  I hope you took our advice and locked your mortgage rate. From Wednesday: I'm still maintaining my lock-in at loan application recommendation.  I just don't see a tremendous amount of upside to floating the mortgage rate.  There is an underlying fear of stagflation in the markets.  The American consumer had the flu, caused by the arrested access to easy money.  Higher oil prices create a commodity-push inflation effect that The Fed (thankfully) won't ignore.  While I agree with the folks from PIMCo that the consumer's flu could throw our economy into a mild recession, I'm … (2 comments)

Where's Roberta Murphy? - 10/03/07 02:47 PM
Do you know the author of Luxury Living Digest, Roberta Murphy?  Roberta specializes in luxury home marketing along the "Gold Coast" in North San Diego County. 
I've seen her at new listings in Rancho Santa Fe, I've spotted her at the La Costa Resort, I've seen her showing luxury homes in Carlsbad, Cardiff, and Solana Beach.  What I haven't seen, lately, is Roberta in her familiar surroundings at the Carlsbad Forum.
I thought I saw her face, this morning, sipping a latte at L'Auberge in Del Mar. 
Where is San Diego's Luxury Marketing Specialist, Roberta Murphy?   Show your face Luxury Lady!
… (14 comments)

Mortgage Rates Report: October 3, 2007 - 10/03/07 10:20 AM
I'd like to start off this morning's report by recognizing my wonderful wife, Debra.  We were married October 3, 1998 at St. Mary's Basilica in Phoenix, AZ.  Today makes it nine years.  Debra balances the demands of family and work beautifully.  Our daughter is an example of the former and our business profitability is a testament to the latter.
I clearly remember the day she changed my life with those beautiful blue eyes.  Her beguiling smile still stops me in my tracks today.  I love you, Debra.
 
I'm still maintaining my lock-in at loan application recommendation.  I just don't see a tremendous amount … (15 comments)

Crumbs Today Become Loaves Tomorrow - 10/02/07 09:49 AM
Have you ever wondered the significance a seemingly minor decision had on your life?  I do. 
I moved out west, from Philadelphia, at the age of 25.  I had a pretty cushy life going in Philly town.  I worked as a securities broker and was favored by the management of my employer.  When other brokers left the firm, I was reassigned some of the best accounts.  I worked hard to gain that favor but it definitely gave me an advantage over the other new brokers.
I chucked it all for a move to Phoenix.  I wanted to live a warm … (11 comments)

Lower Rates On The Horizon Says Bill Gross - 10/02/07 09:46 AM
Bill Gross of PIMCO is one of my monthly reads.  He is the widely known Chief Investment Officer for Pacific Investment Asset Management Company (PIMCO), one of the largest fixed-income money managers in the world.
The October, 2007 edition of his Monthly Investment Outlook is bearish about the economy.  Mr. Gross expects housing prices to decline because of a potential blow up of the credit markets.  In short, Mr. Gross and the gang at PIMCO aren't so sure that the credit meltdown is over.  From Bloomberg.com today:
Sales of new homes tumbled 8.3 percent in August to the lowest in more … (13 comments)

Downtown San Diego Real Estate May be a Buy - 10/02/07 12:57 AM
I just got off the phone with a bright Realtor who specializes in the Downtown San Diego real estate market.
Denny Oh, of Prudential California Realty, writes a weblog called www.SanDiegoh.com.  He submitted a post to the weekly Carnival of Real Estate.  This week, Matt Padilla of the OCRegister, selected Denny's article:
6 Reasons Why Downtown Isn't Overbuilt
In this article, Mr. Oh cites that a reduction in inventory and  strong pre-sale market supports the current pricing in the Downtown San Diego real estate market.  He notes that the developers are not  controlled by debt (they've paid off their loans) and … (5 comments)

Long Beach Realtors- Local Market Experts Have Value - 10/01/07 01:17 AM
"Real estate is a local business, driven by local buyers and sellers, and best served by local professionals."- Gary Keller, Founder, Keller Williams Realty- February, 2000
How has the rising popularity of Web 2.0 sites changed the face of real estate ?  Not a whole bunch.  In fact, most of the information gleaned from the new wave of real estate technology sites is wholly incorrect.  Just ask a Long Beach homeowner, looking to refinance.  The frustration in their voices are deafening when they pull up their home on Zillow.com and discover that the market value is far below the "Zestimate"- I … (6 comments)