Houston Real Estate and more....

Do you really want people to call you ?

2008-08-28T12:53:42Z

Lets Face it .. most of us Realtors,Brokers, Loan Officers and others --as Self Employed started out with no clients, then one at the time you add up ..until you end wiith a large database of people, all of this you gave your Cell Phones , and in some cases you even gave your home phone.

It was fine if you don't have too many active clients at the moment what if you are working with 10 buyers or maybe 25 listings ? then there are office activities, childrens school, your personal groups or clubs ...

Question is: HOW DO YOU HANDLE PHONE CALLS ?

If you are a typical office manager or broker owner of a Real Estate Company you would generally be taking anywhere from 25 to a 100 calls a day, or even more. If you work 8 hours a day you only have 480 minutes, taking 3-5 minutes per call you could be on the phone all day long ?

This is the result of increasing your production, the more transaction you have the more calls you will have.

If you continually let phone calls interupt you. You will end up being unproductive and if you don't answer your calls you might not have clients in the near future.

Here are what top producers are doing to keep their produtivity high at all time. Uninterupted.

Top solutions of all times is to hire assistant/s to answer and follow up phone calls
If you can't afford to hire an assistant use a Virtual Assistant services, lot cheaper
Live Answering Services, they are so inexpensive starts out $75 per month,you have a person answering your call 24/7 and will text you of any messages.
and lastly direct all your calls to your voice mail and check every hour or so.

Answering service works best for me, all my calls forwarded to them. I got additional cell phone ($10 a month) simply for business purposes.. all my calls are handled professionally and I am notified by text message immediately. I can even ask my service if i expect an important call to transfer the call immediately to my personal cell.

Each working day I block 2 hours a day, 1 in the morning and another in the afternoon, just to return all calls received, in some cases I have to call back immediately becuase of urgency or a very important matter have to be attended. So far I have been really successful in handling this part of my life, I am able to control the converation, and often I know what to say to calm down angry realtors or clients.

Are you talking too much on the Phone ?

2008-08-28T11:35:13Z

I was recently asked by one of my investor to list his private residence, which is located 20 miles from me and not in my area of expertise, so I immediately told my investor that I be happy to find him a reliable listing agent in the area. Since he was already out of town with his family he asked me to take care of everything and ends up with an authority to list or refer the property to another agent.

So I end up having to find and interview a Residential Agent in the area.

As would most seller do I scout around the neighborhood and look for "for sale signs" and find out who has the most listings in the genreal area. (looking for Area specialist ?) And decided to call and ask for an appointment with this particular agent.

The next day we meet at the property and as I begun to show her around, her phone keeps on ringing every 3 minutes and she kepts interrupting me and have to stop her presentation at least 10 times, (I lost count after that-) simply to take the incoming call or to text something.

I felt really offended by this attitude, I understand that the call could be important but could the Listing agent at least give some special attention to the would be client ? After all this is a Million dollar listing ? with 6% commission can she not at least turn her phone off for an hour ?

If you are a seller interviewing an agent would you list with this very busy agent ?

Are you doing your part helping our local Heroes, Teachers the Low Income

2008-08-24T08:06:39Z

Texas Realtors® are a valuable source of information for potential homebuyers who may need special assistance in buying a home. The Texas State Affordable Housing Corporation currently provides the Home Sweet Texas Loan, Homes for Texas Heroes and Professional Educators Home Loan Programs.

Did you know that - The State if Texas affordable Housing Corporation provide below market 30-year fixed rate mortgage loans to eligible first-time homebuyers through a network of participating lenders across the state. In addition to the incredibly low interest rate, our programs offer down payment and closing cost assistance, up to 5% of the loan amount, in the form of a grant.

2 Full Price offers, A reduced commission, and one Unhappy buyer's agent

2008-08-24T06:58:04Z

This is an Ethics case study publish recently in our monthly Texas Realtors magazine. A case about a Seller have to decide betwen two offers presented by the listing agent - both full price contents more or less the same conditions.

Seller ask the Listing Agent for advice which offer to accept, listing agent's buyer or the the one with the other broker ? - The agent naturaly replied its up to the seller since both contracts offers the same net to the seller.

Seller comes back to the Listing agent after realizing that if he accepts the offer from the Listng Agent's buyer, full commission will then be paid to the Lisitng Agent - and negotiate to reduce the commision by 1% stating that if he reduced his commission seller would accept Listing Agent's buyer and pays less commission, he further reason out that this deal would still amount to more profit to the Listing agent but would benefit the Seller.

Listing agent agrees and transaction close.. later the other buyer manage to directly ask the seller why he did not accept his full offer and the seller tells the buyer the truth, next day the Buyer's Agent filed an ethics complain - Alleging that Lising agent's commission reduction had induced Seller to accept Listing Agent's buyer. citing that the commission reduction was in violation of Article 1 as interprested by Standard of Practice 1-6 - and that the Listing Agent failure to inform him of the change in the Listing Commission arrangement.

Hearing follows, both argued their cases - Listing agent defended his fiduciary duties, and that Seller is free to re-negotiate terms of their listing agrement at any time..

THE RESULT : The hearing panel agreed with the listing agent - and concluded that there's no violation of Article 1 or 3 ( View the code of Ethics in the Profe. Standards section of texasrealtors.com)

So what is your opinon if you are the Angry Buyer's Agent ? Is this the right thing to do ?

Top Agents - How do they stay successful in today's market

2008-08-20T14:37:23Z

A recent Power Broker Roundtable by NAR address issues on how top agents stay successful in this down market, participating brokers all have similar anwers to the question and I am summing up below :

Retrain in basic sales strategies, - making the most of relationship selling and working more effectively with sellers - let's face it houses priced right are selling and there are great buying opportunities that really pay off when an agent stays in touch with past clients.
Keep intouch with your database of past clients, prospects - keeping them informed about what's happening in the market. If you are dealing with sellers, keep constant communication - It is always not easy to talk to sellers, especially when times are slow, we can help them to stay grounded in reality and that can be the key to successful selling.
Expand your database - top agents always looking for ways to expand their database. most experienced agents also know the value of keeping clients informed about marketing resources and services at the same time keep on asking for referrals.
Learn to adapt as the market change - always looking for ways to sharpen their skills. make the most of downtime by taking online classes that can give them an sedge in a specialized area such as relocation or high-end sales.

So there you have it - these are all the traits of a highly successful agents in today's market - looks familiar ? it should - no matter what the market is you can alway be successfull following the activities of Top Agents.

Know Basic Sales Strategies + Prospecting + Have an edge - find you niche market = SUCCE$$$$$$

Have fun out there...

Houston we are ready for lift off !!!

2008-08-20T11:58:52Z

Houston Area Home Prices Soar In July As Property Sales Record Another Monthly Drop - The average price of a single-family home sees its biggest increase in more than two years; median single-family home pricing hits a record high.

This is what HAR announce today.. “As we approach the one-year mark from when property sales began to slow, we continue to note positive signs in the form of strong pricing and stabilizing inventory,” said Michael Levitin, HAR chairman and principal of HTownRealty.com. “Consumers from across the country and around the world are setting their sights on Houston, Texas as an extremely desirable place to buy a home during these challenging economic times.”

At $226,072, the average sales price for single-family homes reached the second highest level on record in July, increasing 8.0 percent from the same period last year when it was $209,264. That’s the biggest pricing increase since June 2006. The overall median price of single-family homes in July was $161,370 compared to the national single-family median price of $206,500 reported by the National Association of REALTORS?. These data continue to underscore the higher value and lower cost of living that prevail in the Houston market.

For more detailed Houston Association of Realtors Press release Click Here

Well this is a great indication of what the market in Houston are, we are still in a great situation compared to many other cities.

If you are a buyer still undecided to buy now or wait.. just look around you.. there's few buyers, more sellers - if you have been looking around you know that --in Houston today there are better deals we have not seen before. Do you think the prices are going to go down soon ? not likely - with drop in sales prices coninue to go up-- then what if demands increase ? I am sure prices will coninue to rise.. basic economics tells me that...

If you are a Realtor doing Residential in Houston, this year could be your best year ever. get out there grab those buyers, they simply need to know that its okey to buy now...

If you are an investor this is a great opportunity.. to buy rental properties, To Flip... buy and hold...

If you keep on doing what everyone else is doing you would end up like everyone, (complaining about bad market) time to get out of the group, refocus on your market and see why are you not part of the transaction that occurs every month - no matter what the market is there's always a Home being sold monthly - In Houston it is an average of 6,000 a month in slow market.. How many did you participate in ?

Our Airport will have Good FOOD...

2008-08-15T16:54:21Z

Travelling to Houston Soon ? Hate having your lunch in an airport - Well soon you will be delighted to visit our airport.

Houston will have food from FRESH and FAST to HIGH CUISINE. Catering to the tastes of passengers from around the world, George Bush Intercontinental and William P. Hobby airports are redefining the characteristics of good flavor.

Over the course of the next 12 months-plus Houston’s airports will be introducing a variety of new appetizing options for your dining pleasure at the airport. From the healthy and light Colombo Yogurt to the multiethnic breads at Panapolis, travelers will find something for everyone – even the pickiest of connoisseurs.

The Houston Airport System (HAS) is embarking on an ambitious plan to renovate and improve the selection of concessions at George Bush Intercontinental (IAH) and William P. Hobby airports. It is a massive undertaking that airport authorities say is the result of consumer demand and preference.

Now that's something good happening in our backyard..

Did you know that Houston is Preparing for 2020, when more than 80 million passengers will travel through Houston's airports annually.

We are grwing and our properties are going up...

Hay is for horses and Houston's airports have it for sale

2008-08-15T16:33:26Z

Texas is known for having the biggest of the big. In Houston, that includes the airports and their acreage, which can bring in extra revenue.

When you think of an airport, you think of airplanes, flight attendants, security lines, maybe some unique shopping opportunities - but, hay? These days big round bales and neatly stacked squares of hay can be seen from the roads at both George Bush Intercontinental Airport (IAH) and Ellington Field (EFD).

It started as part of an employee suggestion program with an idea to use the open land around IAH and EFD to grow and sell hay in order to generate revenue for the Houston Airport System (HAS).

The employee who suggested the program is the airport system’s director, Richard Vacar, who also owns horses and knows quite a bit about buying and selling hay.

“We’re always looking for ways to better our airport and to create additional sources of revenue,” says Vacar. “The thought came to me - I make hay off of my land by selling hay, just imagine how much money we can make out here with hundreds of acres of open land. We could be the Wal-Mart of the hay business!”

Of the 10,000 acres that comprise IAH, 250 acres are presently being used to harvest hay and 50 of the 2,500 acres at EFD are being used.

Right now most of the hay is a low grade Bermuda grass mainly used to feed livestock such as cattle.

A higher grade of hay – fed mainly to horses - called Tifton 85 is also being harvested in smaller quantities. Tifton 85 is a hybrid Bermuda grass developed by the United States Department of Agriculture's Agricultural Resource Service (USDA-ARS) in cooperation with the University of Georgia Coastal Plain Experiment Station.

The hay program began in 2006 with HAS working with contractors to cut, bale and sell the hay; but HAS decid

ed to purchase specialized equipment like a few agricultural tractors and a bale wagon, so airport employees could get the work done. “Our team is working hard to get hay produced and we’re finally starting to get into the groove of things," says T

errance York, senior superintendent of airfield and grounds.

for more on this visit : Houston Airport System

Now I can proudly say only in HOUSTON.... we sell HAY IN OUR AIRPORT...

Getting things Done - are you always stress out with overwhelming task.

2008-08-14T13:55:23Z

Anxiety is caused by lack of control, organization, prepartion and action.

In todays world, yesterdays method simply does not work anymore. I have been searching for a better ways to manage my time and it seems that the more organized I become the more task I have, a never ending email answering, blogging, prospecting, designing your web and boom ... computer crash..

can you relate this to yourself .. the Super Dad or Mom who not only takes care of the family but need to take care of the business on a daily basis - including weekends and late afternoons ?

Here's one book that have help me accomplish overwhelming task and I'm able to simplify life. From a best seller author "David Allen" - GETTING THINGS DONE.

This is not a new book I pick it up on a church book fare and paid $1.00 .

As I read it I suddently realized that what I have been doing with my Day Timer, To do list and Calendars are the cause of all of my overwhelming task. There is really a simpler way to do things.

I search the internet to see if this is still being sold and amazon has it for $9 bucks.. (click below) don't be fooled by its price, I challenge you to get the book and read it.. it contains an eye openning system to tackle all our daily task... here's a summary if what he teach: Don't waste your money and time attending the overprice time management class and system before you read this book.

Apply the "do it, delegate it, defer it and drop it rule
Reassess goals and stay focused in changing situations
Plan anad unstick projects
Overcome feelings of confussion, anxiety, and being overwhelmed
Feel fine about what you're not doing.

His methods are KEY TO SURVIVAL IN TODAY'S REAL ESTATE BUSINESS WORLD"

Google Map and cool marketing tool for Realtors

2008-08-12T14:02:29Z

MAPS have been a useful tool the show directions to your listings, Real Etate professionals have become accustom to using google Maps or similar services on their websites to let prospects know where the listings are located.

Now a new cool feature called STREET VIEW - a google latest mapping technology, availalable to individual real estate sites. Not only it shows the location of your listing but it will also feel like you are standing right in front of it. It also allows you to see 360 degree street side view of any location that has been enhance this way. Check the Google maps for list of cities where street view is now available, they have started with the big cities, chances are if you live aone them you already have Street View. cool thing about is your prospect / clients have the option of viewing the neighborhood before physically viewing the property.

And it is also easy to use, embedding in your website is similar to the present map embedding process, so you may not have to get a computer guru to include street view in your listing.

I am so trielled about this, since in my commercial practice, I scan for properties daily , I physically do a drive by of any new listing. But now I can simply enter the address and check out the neighborhood, cool stuff considering many commercial Listing brokers in my area do not have photos of their listing.

And in Houston Area - with in city limits google have all the pictures of the properties - Just like driving around the street of Houston.. try it ... www.google.com/maps

Short Sale - Cutting your Commission a rising conflict.

2008-08-10T14:16:31Z

Short sale transactions in many MLS are rising and it is not uncommon for lenders to demand a cut in real estate broker commission as a condition of approving a short sale. The recent Realtor magazine has an article about "Rules aims for calm when lenders cut commission." Its purpose is to resolve rising conflict that arises when lenders come back and want to cut our commission.

It also states that some MLS starting to adoft a disclossure requirements for possible short sale and commission reduction.

And for those MLS who have no rules about this issue will soon be recommended by the NAR board to have some language for a rule of possible short sale.

If you are involve in this type of situation would you allow the lender to cut your commission ? after all those hard work you have done to sell the property ? Not only that - lenders of this type of transaction have the habit of getting back to you weeks later after you submitted the offer. How would you handle this ? What can we do about this ?

$40,000 in Downpayment Assistance from City of Houston

2008-08-09T09:50:43Z

Yes ! Houston wants to give you $40,000 for your downpayment. If you are a REaltor in Houston you have to find out more information on this and offer to your clients, the best program yet..

Who Qualifies :

You may qualify for up to $30,000 down-payment assistance; $40,000 for police officers, fire fighters, and teachers. ... it's easy.

Currently not a property owner
Household income and family size falls between:
- Family of 1 making less than $34,150
- Family of 3 or more making less than $70,150
Ability to obtain a mortgage loan Sustain ownership for 10 to 15 years

Find out if you qualify for the Homebuyer Assistance Programs: Click Below to visit Houston Hope Homes Website

Or contact me : jorge@realtyx.com for more details. The process is not that hard see below:

Complete a Homebuyer Education Seminar offered by the HUD Certified Housing Counseling Agencies listed below. In the seminar you will learn about the home buying process and choose a Houston HOPE Community Development Partner.
Your Houston HOPE Partner will aid you in securing a mortgage loan from an Affordable Lending Partner, and take you through the application for Houston HOPE Down-Payment Assistance.

Information courtesy of :

Is this the right time to flip ?

2008-08-08T18:10:43Z

Few years back I have often ask by novice investor if flipping is a good idea. My answer was yes it is a good business to be. Today with all the foreclosures and slow down in Residential Real Estate markets almost every where and the looming economy --- my answer would still be a BIG YES ? One have to understand that no matter what market it is buying a property and re-provisioning to sell again at a profit is always a good business to be in, that is if you know how and clear with your intentions. What do I mean flipping.... "Buying a Property with the intention of selling it after fixing or updating.

Here's is few pointers most experienced flippers do.

Know your Personal Assets : Before even doing your goals and plans make a list of what you have. Cash, Home Equity, Rich Uncle Bob, Savings, 40k and any other assets you might have that can potentially be useful in your venture. Personal skills and knowledge : spend sometime with yourself and find out what your skills are, are you a handy man ? do you like cooking, degree in finance, experiences. One thing to have this skills but it is to your advantage to be aware of what you are capable of doing - you will normally find your niche in this area. Who you know : Friends, Realtors, Politicians, lawyers, doctors , CPA... etc.. having friend in this field and establishing a relationship with them will prove useful in the future.
Envision the “Big Picture” Before Beginning : As investors are well aware, the business cycle switched over to a buyer’s market in 2006, which made determining whether a particular property is a worthwhile addition for one’s investment portfolio a much more difficult decision to make. Many homeowners facing foreclosure today are upside-down financially for various reasons and can’t refinance their way out. Housing stocks around the country have growing inventories making it difficult for distressed homeowners to sell their way out. Prices continue to decline in many parts of the country and home sales volumes are dismal at best. Education and gaining firsthand experience are essential for the novice investor. “Concentrate on education,”. “If I were a new investor I would run an ad that I buy properties, and have conversations 50 times a month with sellers. It’s good practice. You may get very fortunate and have a motivated seller. You could get lucky!”
Design your Investment Strategies early on: There are many books, seminars and workshops in the marketplace today addressing investing in real estate — particularly in foreclosures. Many of those education vehicles go through the same basic “Investor 101” essentials, such as selecting a geographic area to concentrate efforts, determining the type of real estate (single-family, condo, townhouses, coops, duplexes, etc.) to pursue, assembling an investment “team” (lawyer, accountant, contractors, real estate agent, etc.), and having a pre-approval letter from a lender in hand. However, as a seasoned investor in the business, the artistic freedom to design a deal that works best for each individual investor starts with establishing investment goals before focusing in on the real estate. Generally speaking, most people look at the real estate first rather than look at their long term goal first.
- Flipping as a business and main source of income: make sure you know how you be taxed by IRS and what type of IRS reporting's you might need.
- Flipping as an additional source of Income, make sure you know what is 1031 Exchange, this is a Tax benefits for Real Estate Investor where you can sell your Real Estate and deferring Taxes, it means you don't have to pay capital gains on your profit. setting this up properly would benefit you a lot.
- What type of property to flip. the easiest is the single Family residential, almost all home owners have basic ideas on how to increase the value their home, Realtors have arsenals of articles to help out anyone who wants to increase their home value. On the contrary value of home in any neighborhood relies mostly on the market, various conditions exist and in some case we do not have any control over it. Commercial properties however increase or decrease their value depending on how much is the income generated for the property - Income Increase = Value increase, this is another topic to discus on ways how to increase value on commercial real estate.
Have an Exit Strategy : keep your options open . Real estate investors have to account for all contingencies and keep their options open in case the deal works out a way other than originally intended. There are only two ways to make money in real estate, Sell it or rent it. Sometimes you can buy something and make a profit and then take the money and buy something else and hold it. You have to have a Plan A and a Plan B. If you can’t sell it, then rent it. It you can’t rent it, then lease-option it. A basic guideline is to make sure you have multiple exit strategies on any deal you do.”
Set your Investment / Business Goals : Price range is important to set before starting to look at the properties, see how much can you afford., if you are starting out no matter how much money you have it is always best to start on a low price range, like under $100,000, depending on your area this maybe $200,000 in some cities. the key for starting at the low price end is that if you do make a mistake it will not have a huge impact on you financially. Another good reason to doing flips with low price home is that you can easily rent it out for a good cash flow in case you are not able to sell as plan. Neighborhood - considering the neighborhood to search for properties is vital in you success especially if you are starting out. You may choose to start near where you live or work, a place accessible to you most of the time. Know the current selling price, general age of the homes. Learn as much as you can, you will have an edge on determining the value personally if you know the neighborhood well.
At what price to offer : this means that as an investor you must set your price. As an example I would say I be buying at least 60% to 70% of the current market value, where I place about 10% would be my repair and upgrade cost. I stick to this rule at all times. I never buy a property where I would be expecting to spend more than 10% of the market value. Time table - Set your time - to buy, repair and sell and stick to it. Set the number of property you want to flip in a year and gross profit, very important to set this in writing.
If at all possible do all cash transaction. Buying cash eliminates a lot of usual closing cost and hassles of financing, be creative in this area there are lots possible ways. If you do not have cash do not think you can't do this, if you find a good deal and you really believe you can have a good profit, then you can convince people you know to partner with you and split the profit. there are many investors out there who is looking for deals every time. Cash buyers always will be able to negotiate for best price. A word of caution on cash sale is that you must be sure of what you are buying. Inspector is a vital part of your team, get a good one to help you. An appraisal is also needed if you are not sure of the value presented. As in all Real Estate a due diligence is the key for your success or failure,never fail to ask questions when you are in doubt. before making an offer always snoop around the neighborhood, ask the neighbors, Realtors specializing in that area, search your local criminal or sex offender database, check history of the property, check the electrical consumption. I could not stress enough by doing proper due diligence it will help you make the right decision.
Develop an overall goal : Would you be doing flipping for the rest of your life ? maybe not , this business is not easy, its a hands on and really you have to invest labor in it, the goal now is to generate revenue, to provide you with a descent income, but also remember to set a goal for future stream of income with out really doing much hard work, this may be your retirement. It may be few years or 20 years from now, but what is important is now you are planning for it. and what better way to to plan to have you own Rental Properties, have one now, plan to have another in few years, and then so on... until you get your monthly income from your properties. Yes uu might hear a lot of horror stories about being a landlord, but what you have heard about that there are thousands of landlords out there that enjoys receiving money even as they sleep. What could be better than buying a property and someone else is paying for your mortgage.

Apple removes a Useless IPHONE application

2008-08-08T16:24:13Z

When the iPhone first hit the market in June 2007, those who paid the $499 entry price and signed the two-year AT&T contract -- owned a status symbol. A year later, we have the iPhone 3G, Apple's speedier, sleeker and, most important, less expensive smart phone, which introduced a section for downloading third-party applications. Now that the phone is affordable enough for a wider audience, a new status symbol has emerged: a seemingly useless application called I Am Rich.

Its function is exactly what the name implies: to alert people that you have money in the bank. I Am Rich was available for purchase from the phone's App Store for, get this, $999.99 -- the highest amount a developer can charge through the digital retailer, said Armin Heinrich, the program's developer. Once downloaded, it doesn't do much -- a red icon sits on the iPhone home screen like any other application, with the subtext "I Am Rich." Once activated, it treats the user to a large, glowing gem (pictured ).

That's about it. For a thousand dollars. But Apple couldn't pull it down before curious aristocrats -- eight of them -- had purchased it. Six people from the United States, one from Germany and one from France dropped a grand for the gem in the first 24 hours it was available, according to Heinrrich. That's $5,600 in revenue for Heinrich and $2,400 for Apple, which collects 30% of each sale for "store upkeep." To Read full Story Click Here LA Times.

Now there's a lesson to learn here. No not wait until price drop or after a good reviews published before buying technology..

I mean as a Real Estate agent we need to know the value of our services. People are willing to pay for value perceive, if they think your services are valuable they won't quibble about your 6% or more listing Commission and no matter how many the competition in your market if your prospect knows the value of your service to them. They would pick up the phone and call you instead of all the other agents in your area.

My question would be then how do we create value. How do we create loyal clients who keeps on referring our service to thier friends an family. Have an idea ? post your comment here.

FORECLOSURE RESCUE SCAMS ON THE RISE

2008-08-08T12:01:53Z

I just read this today and would like to share to you all..

WASHINGTON (USA Today) – Foreclosure rescue scams are becoming more of a problem, according to the Federal Trade Commission (FTC).

The FTC has filed three major foreclosure rescue cases this year, compared with zero a year ago. One case involves thousands of victims and property worth millions of dollars, according to FTC regional director Brad Elbein, who heads the agency's foreclosure rescue campaign.

Some scammers promise to negotiate with a lender for a fee, then just take the money and run. In other cases, homeowners pay rent to live in the house but sign title to a rescue company that is supposed to pay the mortgage. Instead, the company sells the house, taking whatever equity is left.

At least 14 states have passed new laws this year to protect homeowners, including a new one in Idaho that requires a written contract with a rescue company and gives homeowners five days to change their minds.

"The scope is probably going to be potentially as large as the mortgage fraud problem itself," says Sharon Ormsby, the FBI's chief of financial crimes.

http://www.realtor.org/RMODaily.nsf/pages/News2008080506?OpenDocument

Are your commission negotiable ?

2008-08-04T22:01:54Z

Just want share an interesting article publish by SignOnSandiego.com 8/04/2008

A study released Monday by Consumer Reports found 71 percent of sellers who negotiated for lower commissions with their brokers were successful. But only 46 percent of sellers surveyed tried.

Those who paid commissions of 3 percent were just as satisfied with their broker's performance as those who paid 6 percent, the study found. The lesson? Haggling won't hurt. In fact, those who paid higher commissions were more likely to have regrets about the selling experience. Nearly one-third of them said they should have been more aggressive in negotiating a fee.

To Read more : CLICK HERE

US Budget Deficit is $500 Billion this year. How are we affected ?

2008-08-01T11:57:58Z

US Budget deficit expected to top $500 billion As reported by ABC news jul, 29,2008 , The United States Government estimates its budget deficit will soar to a record half a trillion dollars in the next fiscal year.

On top of all this ... FDIC has accepted into receivership 7 banks so far this year after only taking over three in 2007. At the end of Q3'07 the FDIC had $53 billion on account to respond to a crisis among member banks. The seizure of Indy Mac, with $32 billion in assets will put a major dent in that rainy day fund at the FDIC.

AMERICA WE HAVE A PROBLEM !!! We are broke.. a country reveread as the Super Power of the world is BROKE, can you believe it ?

Now for those of you who have difficulty understanding budget deficit .. Simply think of it as you own Financial Affairs - A deficit means we spend more than what we have receive and charge it all to our credit card.

My question would be What are we going do about it ? what can we do ? I searched for answers, browse the web, politicians web, etc ...etc.. and more there are bunch of possible solutions, complicated and beyond my grasp,I am just a simple Real Estate Broker... who is not politically involve.. my life has been Family and Business, its all that matters for me..

ABC news Good Morning America, has this solution :Every tax payer contributes $2,000 this year to pay off the deficit. Well there's a flow here, why would anyone pay the goverment $2,000 this year.. no way..

We'll this got me thinking and I sure want AR community to provide possible solutions.

What can we do ? "Take Care of Business at Home and Be aware of what we are spending is my personal answer."

Save $2,000 more this year in your retirement, investment account -(Start Saving and teach your kids )
if you are like many Americans pay off your Credit Card bills. (statistic by a national survey shows average household owes ave. $6,000 in Credit Card Debts)
Stop using credit card if you don't have money to pay it off when the statement arrive.

We may not be able to provide a solution for the national Deficit, but if every household learns to save some of their income each year rather than filling up credit cards debts I think on the overall our society would be financially better off.

To contact me directly simply email : info@jverar.com or visit my web www.jverar.com

Best Cities to Buy a Home

2008-07-22T11:17:49Z

TOP 10 CITIES TO BUY A HOME ACCORDING TO FORBES.COM RESEARCH ON 40 METROPOLITAN CITIES IN USA.

Houston Texas well known as an energy industry hub, thi sgrowing metro area recently made Forbes.com TOP 10 UP AND COMING TECH CITIES AS WELL , thanks to the Houston Technology Center and bubbling entrepreneutial tech scene. With home prices on the rise by 6.6% and vacant homes disappearing by 11.3% in the last two years, this is one area where buyers can feel safe jumping in. The city's $152,500 median home sale price is up 6.6% from 2005. It boasts a low vacancy rate and an oil-rich economy. Throw in a bubbling entrepreneurial tech scene, and you've got four factors that put Houston on the top of our list of best places to buy a home

2. Austin, Texas, 98.5% of homes are filled, and that small sliver of vacancy is thinning. Home prices, have surged from $163,800 in 2005, to $183,700 in 2007.

3. St. Louis, Mo : St. Louis is a great place to settle because it's not overbuilt and is reasonably priced relative to income.

4. Philadelphia, PA : Steeped in tradition, this city is priced well, with a median home price of $234,900, up from $215,000 in 2005. With abundant cultural outlets, including universities, museums and theaters, Philly is a great place to call home.

5. San Antonio, Texas : Median home price of $150,900, up from $133,900 in 2005, it's an affordable place relative to the rest of the country. Home to professional basketball's Spurs, this town is packed--just 2.4% vacancy--and full of Texas pride.

6 Dallas, Texas : With appreciating median home prices in the $150,000 territory, just about anyone can get in. And with just 2.5% of homes vacant, it appears they are. While the city has a reputation for cowboy boots and big trucks, Dallas is a sophisticated metropolis that rivals any major U.S. city in terms of culture and cuisine.

7. Charlotte, NC : The market is reflecting what residents already know: Median home prices hopped to $205,400 in 2007, from $180,900 in 2005. Charlotte's vacancy rate is just a bit above the national average at 3.1%, reflecting a lot of space that is likely to get snapped up.

8. San Francisco, California : The City by the Bay may be pricey, but it's one of a kind. If high culture, good food and great architectural bones are to your taste--this is the town for you.

9. Jacksonvillem, FLA : Since 2000, Jacksonville's population has grown an impressive 8%. Meanwhile, median home prices have climbed 14% in the last 24 months to $189,200.

10. Atlanta, George : A city that constantly tops our lists of best places for just about anything, Atlanta is a great place to buy a home. With median properties in the $170,000 neighborhood, this booming city is affordable and packed with things to do.

Source :

Does ADA applies to Websites ?

2008-05-06T13:20:58Z

Failing to make your real estate brokerage website accessible to people with disabilities can land you in hot water. The American with Disabilities Act or ADA requires places of public accomodation, such as retail stores, libraries and real estate sales office accesible to the disabled.

A recent California Federal court determined that a lawsuit brought against Target Corp. for failing to make its site accessible to blind visitors could be classified as a class action suit. In the case the National Federation of the Blind ("NFB") claimed in a lawsuit against the Company that the Website was not accessible to blind individuals. According to NFB's lawsuit, designing a website which is accessible to blind individuals is technologically simple and not overly expensive. Websites can be made accessible to the blind by adding an invisible code on the webpages that can be read by screen reader software installed on a blind individual's computer. (To read the whole article please go to ( http://www.realtor.org/letterlw.nsf/pages/1107nfb2 you need to be a registered with Realtor.org to access )

The court stated that NFB had met the requirements for class action certification. Therefore, the court gave NFB thirty days to designate a new lead class representative but otherwise found NFB had met the requirements for class certification.

THIS IS A VERY INTERESTING CASE TO FOLOW SINCE THIS POTENTIALLY AFFECT REAL ESTATE AGENTS AND BROKERS WHO HAVE WEBSITES AND SINCE WE CATER TO THE PUBLIC.

Why only few Realtors Invest in Real Estate ?

2008-04-14T15:06:44Z

Here's a question I am always asking Realtors I met. Do you currently invest in Income Producing Real Estate or intend to ?

Only 2 out of 10 I asked actually say says and less than half intend to replace their income with investments. I am curious to know why most of us do not actually invest in Income Producing Real Estate ? After all we are suppose to know what's going on in the market at any given time and we are the expert rigth ? and since we sell Real Estate do you believe that this is the best investment vehicle ever created ?

Here are some answers I get..

I am waiting for the right time or looking for a good deal.
My credit is bad.
No Money for down..
Market is not stable.
and more excuses...

Here's why you should consider investing in Real Estate :

Great Leverage - you can own a property with as low as 10% down, can youdo this with Stock market ?
Tax Incentives - depreciation GO Properties and more
Passive Income with little day to day work
Value Appreciation

No matter what the market is up /down or whatever is happening if you have cash flow you really do not care much what is happening in the market, the key is setting your intentions to find the right property for you, along the way you will find answers.

Wha is your reason ? or reaons you hear realtors say..

Looming Boom in Texas through 2030

2008-04-14T14:55:06Z

Here's some interesting report about Texas Real Etate market... I quote below an article from Texas Real Estate Center : http://recenter.tamu.edu/pubs/pubssearch.asp?TID=&AID=&TYP=&STX=1841 , this report is a Reprint from Tierra Grande and one of the most downloaded report. To download the fuull report please click here.

The next quarter century should be marked by prosperity in Texas, driven by population and job growth. By 2030, the state is expected to have added 13.6 million people, the equivalent of another Dallas-Fort Worth, San Antonio, Houston and Corpus Christi.

The Lone Star State is being "discovered" by the rest of the country because of its affordable housing, lower cost of living and cost of business, greater employment opportunities and appealing lifestyle. Events and circumstances point toward a Texas-sized boom between 2005 and 2030.

The state's population and economy as well as its housing and commercial real estate markets are poised to explode in volume and prices. Unless something as catastrophic as the 1980s oil bust occurs in the next couple of decades, the momentum born in the first five years of the new century should only get stronger. READ MORE

Looming Boom in Texas through 2030

2008-04-14T14:54:49Z

How Real Estate Professionals Pay No Taxes in 2008

2008-03-26T19:59:17Z

Yes any Real Estate Professionals, Realtors can legally pay no taxes for 2008, and get REFUND ON TAXES YOU PAID IN 2003, 2004,2005,2006 and 2007 !

Get your attention ? You probably filed your taxes for 2007 already and like many full time brokers or agents you most likely paid your taxes.

How can I really pay no taxes in 2008 ?

•1.) Make no money or

•2.) Make lots and lots of money and purchase investment properties in an area called "GO- Zone"

What is GO-ZONE and how can it help me pay no taxes ?

CLICK HERE TO RESERVE YOUR SIT AT OUR CONFERRENCE CALL

If you file your own taxes using turbo tax or any other software you would probably seen this as part of the interview question : Did you invest in GO-Zone Property ? I have seen this countless time by choose to ignore because every year I am in the rush to complete my 1040's and schedule C, until now...

About 3 years ago, Congress passed The Gulf Opportunity Act of 2005 (HR 4440), designating certain areas of Louisiana, Mississippi and Alabama as the Gulf Opportunity Zone, or "GO‐Zone", and introduced the most extraordinary tax benefits for real estate professionals in the history of the United States.

In an attempt to incentivize the rebuilding of areas affected by Hurricane Katrina, the Act allows real estate professionals who buy newly constructed properties and put them into service before December 31, 2008, the following benefits:

An additional 50% first year bonus depreciation. Normally a residential investment property is depreciated over 27.5 years, which comes out to 3.64% per year. That means if you buy a property where the structure (after removing the value of the land) is worth $275,000, you would depreciate it $10,000 per year, and you could write off that "loss" against all other forms of income. But, in the GO‐Zone you would get an additional 50% first year bonus depreciation, so that same property in the GO‐Zone would give you a write off of over $140,000! And you can write off that "loss" against all other forms of income. That means if your taxable income is $140,000 or less this year, and you buy this new home in the GO‐Zone and list it for rent before December 31, 2008, you will owe NO TAXES in 2008!
5 Year Net Operating Loss Carry Back. If your GO‐Zone property creates more depreciation than you have income in 2008, you are entitled to carry this additional loss back 5 years, take it against income you already paid tax on, and get a refund check from the government! Let's say you buy two of these properties from our above example, creating a $280,000 writeoff.
You can write off your $140,000 income with just one of them and then you have a $140,000 paper loss left over. So, if you made $140,000 in each year between 2003 and 2008, your $140,000 in depreciation would wipe out your entire income tax obligation for 2008, and get you a refund for all the tax you paid in 2003. For a full refund for the taxes you paid in 2004, 2005, 2006 and 2007 as well....just buy more properties!

YES ! !!! The government will send you a check refunding the taxes you have already paid, all the way back to 2003!

20 Year Net Operating Loss Carry Forward. Let's say you buy enough property to write off all of your income over the past 5 years, and you have an additional paper loss left over after getting all your money refunded. You are allowed to carry the loss forward 20 years and take it against income you make in the future! Remember, most of the GO‐Zone benefits expire at the end of 2008, but as long as you buy in 2008, you can carry the losses backward and forward!

Can Realtors really take this benefits ? How about Investors ? What is Real Estate Professionals as define by IRS ?

Only Qualified Real Estate Professionals can take the full GO‐Zone benefits. The IRS definition of a "Real Estate Professional" is someone who:

1) Spends a minimum of 750 hours a year (about 15 hours aweek) or more in the active trade or business of real estate.

2) Does not work at another paid job for more hours than they spend doing real estate.

Most full time Realtors should qualify. Check with your CPA to verify that you qualify.

WHAT ABOUT HIGH INCOME EARNERS WHO ARE BEING HIT WITH ALTERNATIVE MINIMUM TAX? I UNDERSTAND THAT "AMT" RESTRICTS THE AMOUNT OF DEPRECIATION REAL ESTATE PROFESSIONALS CAN TAKE.

The Gulf Opportunity Act explicitly states that the bonus GO‐Zone depreciation for real estate professionals is NOT subject to the restrictions of AMT. Even if you are having an AMT year in 2008, it cannot limit your ability to take the GO‐Zone depreciation against all other forms of income (and to carry it back and claim your refund from previous years).

IT SOUNDS INCREDIBLE, BUT I DON'T KNOW ANYTHING ABOUT THE MARKETS IN THE GO‐ZONE.

Congress drew a line on a map, designating a huge area across three states as the "GO‐Zone". Some of the areas got hammered by Hurricane Katrina, others did not get touched. Some of the markets within the GO‐Zone are economically depressed areas, and others are among the most aggressive growth markets in the country, currently undergoing multi‐billion dollar development projects and huge population expansion. For the qualified real estate professional, the key is knowing WHERE to invest in the GO‐Zone so that you can be in an appreciating growth market, what product to buy so that you can cash flow while you hold, making sure you are dealing with an ethical builder with a strong local track record, and ensuring a viable exit strategy.

How can I purchase GO-Zone Properties ?

Please click here to find out how you can purchase property in GO-Zone Area and find a company that can help you in your property management.

FOR MORE DETAILS ABOUT GO-ZONE PROPERTIES AVAILABLE JOIN US

REALTORS IF YOU REFER YOUR INVESTORS GET PAID 3% ON PURCHASE

Resources : IRS Publication 4492: http://www.irs.gov/publications/p4492/ar02.html

IRS Publication 946 : on how to depreciate your GO‐Zone property

http://www.irs.gov/publications/p946/index.html and IRS Publication 925 on Passive Activity Rules. http://www.irs.gov/publications/p925/ar02.html

DISCLAIMER: The author of this blog is not a legal or tax professional and the information herein should not be construed as legal, tax or other financial advice. This is for informational purposes only. The author does not assume any responsibility for errors and omissions. All readers are encouraged to consult legal and tax counsel in regard to their individual situation and applicable law.

Home price plunge accelerates...A report from CNN

2008-02-27T12:43:04Z

This news from CNN Publish February 26, 2008 by Les Christie is a mind boggling , Are you in anyone of this market ? In my market - Houston is not in the worst markets nor is it listed in the top 3 markets. Undoubtedly it is the best time in a long time to buy., so far most agents I know tells me there are buyers out there... listings are sold.. How about your area ...

Please comment on your market of what's going on right now... I cut and paste the report here for your convenience but the actual link to this page is : http://money.cnn.com/2008/02/26/real_estate/Case_Shiller_year_end/index.htm?postversion=2008022610

_____________________________________________________________________________________________

2007 year-end results are in and the news is bad: Major housing markets were down even more than anticipated.

NEW YORK (CNNMoney.com) -- The decline in residential real estate accelerated though the end of 2007, and home prices in 20 key markets plunged 9.1% for the year, according to a survey released Tuesday.

The S&P Case/Shiller Home Price index showed its largest annual drop in its 20-year history. By comparison, during the 1990-91 recession, home prices fell 2.8%.

Prices dropped faster throughout 2007 with the index recording a 9.1% year-over-year drop in December.

"We reached a somber year-end for the housing market in 2007," said Robert Shiller, Chief Economist at MacroMarkets LLC and co-founder of the index, in a statement. "Home prices across the nation and in most metro areas are significantly lower than where they were a year ago."

All metro areas are now reporting at least four consecutive monthly declines.

Case/Shiller's 10-city index fell even more sharply and finished down 9.8%.

The Case/Shiller indexes compare same-home sale prices. The industry considers them to be among the most accurate snapshots of housing prices.

Of the 20 metro areas examined, all but three posted declines for the year. Miami homes lost 17.5% in value - more than any other metro area - and Las Vegas and Phoenix both had 15.3% declines.

The three that posted modest gains: Charlotte, N.C., 2.3%; Portland, Ore., 1.2%; and Seattle, at 0.5%.

Los Angeles, the nation's second biggest housing market, was the worst performer in December, when prices fell 3.6% compared with November; the decline for the year was 13.7%.

Other double-digit losers for the year were San Francisco, down 10.8%; Tampa, 13.3%; Detroit, 13.6%; and San Diego, 15.0%. Losses in the nation's biggest market, New York, were more modest, down just 5.6% for the year.

Maverick Deal Can anyone comment on this email ? is this for Real ?

2008-02-21T22:15:19Z

Hi Everyone,

A few days ago I sign up for this group, they offer to pay realtors 3% commission on any clients you send to attend the conferrence and buys a property., I am researching this company and would be ever greatful if anyone who have detail knowledge of this company "Maverick Investor Group" are they for real ? have anyone done any business with company ? Your comments will be appreciated...

____________________________________________________________________________________________________

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Imagine if you had the foresight seven years ago to invest heavily in Las Vegas, Miami, Phoenix, San Diego, and Honolulu, and to get out 2 years ago. Those markets all appreciated over 100% in a 5 year period. Many savvy investors made enough money in those markets in just 5 years that they never have to work again.

What if you knew which market would have the most aggressive growth over the next five years? Would you get in early?

Moody's and Forbes recently ranked all 363 metropolitan areas for economic growth over the next 5 years and the results are in. If you missed out on Phoenix and Vegas and Florida (or if you rode those waves and know what it's all about), you have an exclusive opportunity buy in the market ranked #1 in the country for projected economic growth between 2008-2012. (click the link)

What if you knew that a major population shift was about to occur, and that this mass migration was going to begin in the next two years...when the baby-boomers begin to retire. If you knew where they were going, would you buy property there first?

Think warm southern climate, sandy beaches, some of the top rated golf courses in the country, friendly laid back lifestyle, but much less expensive than Florida and NO PROPERTY TAXES for senior citizens! How's that for a retirement incentive? ( click the link)

What if you knew that the government had passed the most extraordinary tax incentive in the history of the United States that offered real estate professionals a 50% first year bonus depreciation for buying investment property in a particular market?

The region is called the GO-Zone, and real estate professionals may be able to take 50% first year bonus depreciation on qualifying property against all other forms of income, and carry back the loss 5 years to get a refund from the government on income tax already paid. Non-real estate professionals, who make less than 100K per year, may be able to take the bonus depreciation and write off up to 25K per year against their other income and carry the rest forward.

Now, what if I told you that all three of these were the same market...and that a private buying opportunity will occur for one night only where a select group of people will have access to premium investment properties in this market? What if I also told you that there is a premiere property management option already in place, the potential for positive cash flow, and that you get special prices and terms not available to the public? Would you want access? (Click the Link)

Mark Your Calendar for TUESDAY, FEBRUARY 26th at 6PM PST (9PM EST)

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