Sean Dreznin's Commercial Investment Real Estate Blog

Only Chuck Norris can save the Commercial Real Estate Market

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sun, 15 Nov 2009 08:57:42 -0600

Even as some sectors of the US economy see a return to growth, woes in commercial real estate are deepening, raising fears that the fragile recovery could falter.

Unlike the US home market, which has shown signs of rebounding, recovery is elusive in commercial real estate, a sector which includes apartments, offices and industrial and retail properties.

The Moody's commercial property index fell 3.0 percent in October, and remains 32.8 percent down from a year earlier and 40.3 percent lower than two years ago. "Although prices have declined steadily over the past year, the rate of decline has slowed in recent months after falling by about 8.0 percent in both April and May," Moody's said.

According to the Mortgage Bankers Association, loans for commercial and multifamily property activity fell 54 percent in the third quarter from a year ago. Loan originations were off 12 percent from the second quarter.

San Francisco Federal Reserve president Janet Yellen said the prospects for the industry are "worrisome."

"Commercial property didn't turn down until well after housing did," she said. "The sector's problems appear to stem in large part from the effects of the recession and the credit crunch, rather than the type of building boom and lax underwriting standards that tripped up housing."

The market for commercial mortgage-backed securities, Yellen said, "remains deeply distressed and issuance is meager despite support from the Fed."

A survey by the consultancy PricewaterhouseCoopers and the Urban Land Institute suggests the market may continue to slide into 2010. The survey respondents predict that commercial real estate vacancies will continue to increase and rents will decrease across all property sectors before the market hits bottom in 2010.

It projects value declines of 40 percent to 50 percent off 2007 market peaks, setting up the potential for big bargains.

For full article, click here ----> http://news.yahoo.com/s/afp/20091115/ts_afp/financeeconomyuspropertycommercial

Siesta Key Beach

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 13 Nov 2009 15:24:28 -0600

Siesta Beach stretches from a site named Point of Rocks, just below the middle point of Siesta Key, north to the Siesta Village region. It might be considered Siesta Key's premier claim to fame. Siesta Key's Siesta Beach has accumulated numerous awards in recognition of its soft, clean, pure-white sand. Consistently, it is rated among the top ten beaches of Florida, the U.S., and the world. Harvard University's geology department found the sand of Siesta Beach was 99% pure quartz.

Unlike most beaches that are composed of crushed shells, rocks or lava, this sand is pure white and finer in texture than most refined sugar. The sand has been described as "dazzling" and it is stated that it never feels hot. Siesta Key's remarkable sand and the azure, warm water of its beaches are a great attraction for tourists and local beachgoers alike who come to experience the sand and the water.

Point of Rocks is a shallow formation of limestone rock that extends into the Gulf of Mexico from the middle of the western shore of Siesta Key. This very distinctive site, geologically unusual for Southwest Florida, provides habitat to a wide variety of fish and is, perhaps, the only good snorkeling beach on the west coast of Florida. For centuries, Point of Rocks has been a landmark for mariners and "legend" has it as the starting point for maps to burial places of treasures plundered by pirates.

Siesta Beach is one of the largest beaches in the area, but its 40 acres (160,000 m²) of land might not have become the wide and deep expanse of public-accessible beachfront they are today. According to a local Siesta Key publication, The Pelican, one Otis A. Kiesow could be credited with single-handedly making certain that this beachfront---then, as always coveted by real estate developers and builders---would not later become filled with homes, condos and hotels, as are much of the rest of the Gulf of Mexico's beachfronts. According to the Pelican and Mr. Kiesow, who died in January 2001, he had traveled to the Capitol in Tallahassee to ensure that the beach, in fact, was being set aside into perpetuity for the people of Sarasota: His discovery and impression from this visit was that it was not. He was told to go home and not to worry . . . that everything had been ‘taken care of'. Mr. Kiesow would then personally collect the needed signatures for a referendum that voters would later approve.

Today, the site is wide and white with mainly a pavilion and gift shop as man-made counterpoints to nature. Siesta Beach, like Crescent Beach that extends south from it and Siesta Village, boasts white sand of a similarly fine, powdery white quality; Crescent Beach public access, however, comprises a relatively narrow strip of beachfront when compared to Siesta Beach's. Turtle Beach, farther south still and nearing the southern end of the key, is a fairly large beach featuring a small mangrove-surrounded tidal lagoon; Turtle Beach, is noted for its abundance of seashells, as opposed to the sugary white sand to be found in other portions of the Siesta Key Gulf shoreline.

Troppe gets Hands on another Downtown Akron Building --- "Thank Goodness!"

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 12 Jun 2009 11:18:39 -0500

LANDMARK RESCUED Tony Troppe renovating historic Kaiser

Building for use as cafe, offices across from Canal Park

By Betty Lin-Fisher Beacon Journal staff writer

Photo credits (Ed Suba Jr./Akron Beacon Journal)

A downtown Akron building whose last owner lost it to foreclosure after a failed attempt to sell it on eBay is getting new life under the eye of historic building renovator Tony Troppe. Plans call for the Kaiser Building, across from Canal Park on South Main Street, to have a cafe or store in two slots on the first floor, offices on the second floor and a mix of offices and loft apartments on the third floor.

''I did not like that vacancy across the street from the ballpark,'' said Troppe, who has renovated several historical buildings in downtown Akron. ''I felt for some time that a building of that stature should be brought back.'' Troppe said he wants to create ''a positive node of knowledge workers,'' referring to downtown workers and students who soon will be living at the 22 Exchange Place project a few hundred feet away. He believes they will be looking for places to hang out, eat and work.

The building, believed to have been built in 1877, formerly housed a German-American Family Club and had a grand ballroom on the third floor with 18-foot-high ceilings.

Troppe envisions a world-cafe type of eatery on part of the main floor, with coffee, beer, food and live music. He also wants to create an outdoor eating area on a brick patio to the side or possibly a drive-through window. Troppe said he is in discussions with potential tenants and might run the cafe on his own, similar to Mocha Maiden on Maiden Lane off East Market Street.

Troppe, with private investors under the name Kaiser Hall Revival Group, bought the building from the mortgage lender after a sheriff's sale for $365,000, according to public records. They have financed the project through Portage Community Bank.

The building's previous owner, Jeremy Caudill and his company, JJC Investors Inc., had purchased it in 2005 for $650,000. But Caudill was unable to renovate the building or sell it, including an unsuccessful listing on eBay, before losing it to foreclosure for delinquent taxes and back payments to the lender.

The building, at 323 and 325 S. Main St., needed a lot of internal demolition, Troppe said. Crews began in March, and Troppe hopes to have the first floor done and open for business by fall. FOR COMPLETE ARTICLE, CLICK HERE <-----

AIG agrees to sell 2 NYC buildings

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 03 Jun 2009 11:03:46 -0500

The embattled insurer American International Group Inc. is selling its headquarters building in New York and a nearby building in a deal expected to close at the end of this summer, a person familiar with the matter said Wednesday.

But the person said that AIG is not disclosing the price or who the buyer is. The person asked for anonymity because the sale has not been made public yet.

The building sales are the latest move by AIG, which has received $182.5 billion in financial support from the government since September, to shed assets to repay the loan package. The buildings are at 70 Pine Street and the adjacent 72 Wall Street in lower Manhattan.

Why do I have the feeling that the reason AIG is keeping this quiet and confidential is they are making a substantial profit on the sale and somehow are going to circumvent delivering those profits to the shareholders (The taxpayers!!!) and instead keep them for themselves.

You wait and see, I believe that will be the case.

WITNESS

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sat, 23 May 2009 07:20:02 -0500

"WITNESS" this

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 22 May 2009 23:04:16 -0500

LeBron James drills the game winning 3 point shot with 1 second remaining to seal the win 96-95 against the pesky Orlando Magic. What an amazing shot to a breath stealing game! Embedded video from NBA Video

The Dark Angel of Akron drops some more Demonic News ~ #1-Chrysler plans to close dealerships #2-Forest City Enterprises reveals big job cuts #3-Shiloh Industries eliminating 111 jobs

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 15 May 2009 11:26:53 -0500

#1-Chrysler plans to close 14 dealerships in Cleveland-Akron market

Northeast Ohio stands to lose 14 Chrysler dealerships from Elyria to Wadsworth, according to a U.S. Bankruptcy Court filing this morning by Chrysler LLC.

Dealerships targeted for closing include five Spitzer dealerships in Akron, Lakewood, Mayfield Heights, Parma and Sheffield Lake; three Ganley dealerships in Cleveland, Middleburg Heights and Wickliffe; and two Axelrod dealerships — Axelrod Chrysler in Parma and Axelrod-Chrysler-Dodge-Jeep Inc. in Wadsworth.

Also on the closing list are Abraham-Chrysler-Jeep in Elyria, Crestmont Chrysler Jeep in Beachwood, Great Northern Dodge in North Olmsted and Medina World Cars in Medina.

As the automaker’s bankruptcy unfolds, expect dealers to combat the closings.

Alan Spitzer, chairman and CEO of Spitzer Management Inc., could not be reached this morning and did not return a call. Nick Abraham, owner of Abraham-Chrysler-Jeep, also did not return a call.

#2-Forest City Enterprises reveals big job cuts in posting fourth-quarter loss

Forest City Enterprises Inc. (NYSE: FCEA, FCEB) has reported sizable net losses for the fourth quarter and fiscal year ended Jan. 31, while also revealing that it reduced its nationwide work force by nearly 500 full-time positions during the fiscal year as part of a cost-cutting drive to increase its liquidity.

The real estate giant said its net loss in the latest fourth quarter totaled $45.1 million, or 44 cents a share, and compares to a year-earlier profit of $12.6 million, or 12 cents a share. Revenue in the quarter fell 20%, to $323 million from $404.4 million.

#3-Shiloh Industries to close Medina County plant, eliminating 111 jobs

Shiloh Industries Inc. will shutter permanently its Liverpool Manufacturing Plant this summer, putting 111 employees at the Medina County operation out of work, according to a company filing with the state of Ohio.

Valley City-based Shiloh on Monday notified the state, via a required Worker Adjustment and Retraining Notification (WARN) Act filing, that it will close the plant. The company in March told the state that it was laying off 83 workers from its Medina Blanking Division, although those layoffs were termed “temporary.”

Shiloh, which primarily supplies U.S. domestic automakers and their vendors, has been hit hard by declining auto sales.

For full articles and more Angels & Demons type news, click here to visit Crains Business <----

Articles above written by Stan Bullard, Dan Shingler

Wordless-ish Wednesday

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 13 May 2009 09:45:56 -0500

Above - This recently released picture from the CDC (Comedy Diocese Coalition) documents the true origination of the so called "Swine Flu" or the H1N1 virus.

The moral of the picture is of course to always wash your hands, as you never know who has pressed your buzzer before you!

P90X Review

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Thu, 07 May 2009 19:23:17 -0500

There are a lot of reviews on the web, but I liked this one in particular from diet spot light . com that is seemed general enough in its pro/con scope to be unbiased. Of course they ruined that by whining about not having appetite suppressants... If you think pills are the way to weight loss and health... "Here's your sign!"

What You Should Know

P90X is a weight loss system created by Beach Body, a company that offers other weight reduction programs such as Hip Hop Abs and Turbo Jam.

This system claims to get your body from “regular to ripped in just 90 days.”

P90X consists of 12 workout routines (a series of DVDs), a 3-phase nutrition plan, unique supplement options, a fitness guide, a progress calendar and online support. Tony Horton is the “personal trainer” for this specific weight loss program. There is a 100% 90-day satisfaction guarantee offered with P90X.

The key to this program’s effectiveness is stated to be “muscle confusion,” which basically means that numerous exercises are incorporated and encouraged to keep different muscle groups doing different things as much as possible. This way there is no “plateau” effect. Therefore the muscles do not get used to the routines and they continue to develop.

The workout programs are named after the muscle groups that they work out, and these are: Chest and Back, Shoulders and Arms, Yoga X, Plyometrics, Legs and Back, Kenpo X, Chest, Shoulders and Triceps, Back and Biceps, Core Synergistics, Ab Ripper X, Cardio X and X Stretch. There are success stories posted on the official P90X website.

This fitness program is stated to take one hour each day. A few additional supplies needed for P90X are resistance bands or dumbbells and a pull-up bar/place to perform pull-ups.

Product Features

P90X is a fitness program marketed toward men and women that aims to assist with losing unwanted body weight, toning up and “getting ripped.”

This weight reduction system basically involves a series of DVDs that offer exercise routines, online support and a 3-phase nutritional plan.

P90X is offered through the official website for three monthly installments of $39.95. This fitness program is offered with a 100 percent 90-day satisfaction guarantee. “Muscle confusion” is the primary focus of P90X, which addresses the notion of confusing the muscles with a number of different exercises. This supposedly leads to a stronger, slimmer and more fit physique.

There are no diet pills incorporated with P90X, just a workout routine.

Advantages

P90X can be easily and conveniently purchased through the official website. Since there are no pills involved, P90X is a one-time expense. P90X is offered with a 100%, 90-day satisfaction guarantee.

Disadvantages

There are no appetite suppressants incorporated into the P90X fitness program. P90X would call for a rather drastic lifestyle change, which may not be suitable for all individuals. There are no convenient fat burning supplements offered with the P90X weight loss system. Some individuals may find that P90X is rather pricey since it involves three separate payments of $39.95 (totaling around $120). With P90X it can take 90 days to reach your weight loss goal, which may not be ideal for some dieters, especially compared to faster-working diet supplements currently on the market.

Their Conclusion

All in all, the P90X weight loss program is interesting and quite intriguing in some respects. While it’s positive that the P90X system encourages regular exercise and a leaner diet, it’s tough to tell if this weight reduction program is really right for most individuals. In the end, P90X calls for a pretty heavy lifestyle change; not to mention a fairly high price tag for some users (around $120). If you have found that other exercise routines left you without results, there is no reason to believe that P90X is the answer, and you may want to check out some of the diet supplement alternatives that are out there.

My Preliminary Conclusion

P90x is awesome. You workout when you can, in the comfort of your own home with a pull up bar, bands, and a yoga mat. Or you can go to the gym and squeeze onto a sweaty machine between some meatheads.

Ideally, you eat well and workout at your own pace. Its awesome.

Akron-area home values keep sliding

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Thu, 07 May 2009 19:10:24 -0500

Report finds 24.8 percent of Summit, Portage owners have negative equity

Published on Thursday, May 07, 2009

This article from http://Ohio.com is a bit of a micro-view segue from the previous blog article. Zillow has plenty of research and commentary to show how Akron Residential is slowly rotting from the inside, despite all the wonderful efforts of local business people. The local government needs to hopefully read this blog and many of the available resources out there screaming about the area needing help... anyhow... I digress... enjoy the articles' worth content.

Nearly a quarter of all homeowners in Summit and Portage counties owe more on their mortgage than their home is currently worth as values fell from a year ago, according to the latest research by the online real estate firm Zillow.

Home values in the Akron metropolitan statistical area — defined as Summit and Portage counties — fell 7 percent in the first three months this year compared to a year ago, according to the Zillow Home Value Index. The Zillow Real Estate Market Reports look at 161 metropolitan areas and cover the value changes in all homes, not just homes that have recently sold.

The average home price in the greater Akron area for the first quarter this year was $115,682, down 14.9 percent since the Akron market peaked in 2006, Zillow announced in a release Wednesday. The results for Summit and Portage counties showed:

• 24.8 percent of all Akron-area homeowners now have negative equity, meaning they owe more on their mortgage than their home is currently worth. The local area still fared better than the nation overall, according to Zillow.

• Homes in the Akron area lost $815.3 million in value during the first quarter of 2009, and have lost $3.2 billion in the past 12 months.

• 28.8 percent of transactions in the past 12 months were foreclosures.

• 8 percent of homes sold were ''short sales,'' meaning the proceeds fell short of the balance owed on the mortgage.

Nationally, home values fell in the first quarter, declining 14.2 percent from the first three months of 2008 to an average of $182,378. Declining home values left 28.9 percent of all American homeowners with negative equity by the end of the first quarter, Zillow said.

''Slowing declines in select markets are a bright spot or, at least, what passes for one given current market conditions,'' Stan Humphries, Zillow vice president of data and analytics, said in a prepared statement. ''Unfortunately, given the magnitude of the current rates of decline, we're still many months away from a bottom even as depreciation slows.''

P90x Update - Week 3

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sat, 02 May 2009 17:24:34 -0500

P90x is a 90 day program that focuses on "Muscle Confusion". The #1 thing I have noticed about the program is how fluid the DVD's are, in the sense that there are 30 second to 90 second breaks sprinkled in among the workouts, but the commonality to all the discs is how quickly they go. You will be sweating and done with the DVD's before you have time to realize how hard you have worked!!

Day 17 - Today was Shoulders / Arms + Ab Ripper X. Approx. 75 minutes of straight arse-kicking, sweat-inducing, fitness gold.

I purchased the perfect pushup paddles because my wrist would always start to hurt previously, when I would do pushups on my hands.

In regards to this, I am in my 2nd week of the perfect pushup program and completed 80 pushups (decline, regular, close & wide) before P90x today.

I also did 3 hours of landscaping which leads to my current predicament of not wanting to get up off my recliner... I am tired!!!

But it feels so good!

How Low Will Real Estate Go?

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 22 Apr 2009 09:48:22 -0500

These places in America have fast-falling home prices that have yet to hit bottom.

Two weeks ago, Joyti Goundar, an agent at Redfin, a residential real estate brokerage, entered a bid of $420,000 for a three-bedroom, 1,625-square-foot La Crescenta home outside of L.A., listed at $299,000.

When she lost the bid, she wasn't surprised. In July of 2008, Goundar bid $559,000 for a two-bedroom Arcadia house, also outside L.A., listed by Wells Fargo for $459,900. That one received 105 bids, driving the price up to $628,000, according to Los Angeles County records.

"Sellers want to generate a bidding war, and it's working," she says.

So does this mean Southern California prices have reached bottom? Not by a long shot. Even with the bidding wars, prices aren't nearly as high as they were at the peak of the real estate boom. Values plummeted 31% in the L.A. metro area in 2008, according to the National Association of Realtors. And values still have a long way to go.

Based on historical balances of employment, housing sales, income, lending availability, foreclosures and vacancy rates, all dating back to 1982, home prices in the Los Angeles metro area still have 29% further to fall, according to Moody's Economy.com. The best real estate deals, it seems, are yet to come.

For full story, click here <-----

By Matt Woolsey, Forbes.com

An Effort to Save a City by Shrinking It

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 22 Apr 2009 08:30:38 -0500

What a terrific idea! I would think that this approach could be successful in different scales in many areas where populations have dried up along with jobs and hope.

Certain parts of cleveland would look better, be safer and more enjoyable if the houses were gone and parks and open space existed instead.

Below find the beginning of the article and the full story is provided in the link found here and below the story.

FLINT, Mich. — Dozens of proposals have been floated over the years to slow this city’s endless decline. Now another idea is gaining support: speed it up.

Instead of waiting for houses to become abandoned and then pulling them down, local leaders are talking about demolishing entire blocks and even whole neighborhoods. The population would be condensed into a few viable areas. So would stores and services. A city built to manufacture cars would be returned in large measure to the forest primeval.

“Decline in Flint is like gravity, a fact of life,” said Dan Kildee, the Genesee County treasurer and chief spokesman for the movement to shrink Flint. “We need to control it instead of letting it control us.”

The recession in Flint, as in many old-line manufacturing cities, is quickly making a bad situation worse. Firefighters and police officers are being laid off as the city struggles with a $15 million budget deficit. Many public schools are likely to be closed.

“A lot of people remember the past, when we were a successful city that others looked to as a model, and they hope. But you can’t base government policy on hope,” said Jim Ananich, president of the Flint City Council. “We have to do something drastic.”

In searching for a way out, Flint is becoming a model for a different era.

Planned shrinkage became a workable concept in Michigan a few years ago, when the state changed its laws regarding properties foreclosed for delinquent taxes. Before, these buildings and land tended to become mired in legal limbo, contributing to blight. Now they quickly become the domain of county land banks, giving communities a powerful tool for change.

LINK TO FULL STORY <------

Freddie Mac CFO found dead ~ 41 years of age ~ Suicide possible

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 22 Apr 2009 08:13:12 -0500

By MATT SMALL, Associated Press Writer – 40 mins ago

WASHINGTON – David Kellermann, the acting chief financial officer of mortgage giant Freddie Mac, was found dead at his home Wednesday morning in what police said was an apparent suicide.

Mary Ann Jennings, director of public information for the Fairfax County, Va., Police Department, said Kellermann was found dead in his Reston, Va., home.

The 41-year-old Kellermann has been Freddie Mac's chief financial officer since September. Jennings said that a crime scene crew and homicide detectives were investigating the death, but that there didn't appear to be any sign of foul play.

McLean-based Freddie Mac has been criticized heavily for reckless business practices that some argue contributed to the housing and financial crisis. Freddic Mac is a government-controlled company that owns or guarantees about 13 million home loans. CEO David Moffett resigned last month.

Click here for full story <-----

Speechless Sunday

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sun, 19 Apr 2009 08:57:54 -0500

This picture is one of my favorites... A quick stop on a trip to the Outer Banks...

Grave Digger is a great Dave Matthews Band song, which has some meaning to me and of course it is also a colossal big wheeled monster truck!

Oh and of course, my mad flexing skills!

Real Estate the Family Guy Way

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sun, 19 Apr 2009 07:12:36 -0500

Investment Real Estate Improvement Considerations

When considering a project for an Investment property, the first question you need to ask yourself, is simply, "Is this necessary, now?"

If the project is not considered dire and the consequences are minimal to nil, then logically in this market, it would seem to make fiscal sense to postpone the project (e.g. - Window replacements, asphalt replacement vs. repair)

Secondly, the next aspect to consider is how to recoup the cost of the improvements? Rent Increase? Reduction in amenities? Does the current market or your current rents allow for upside movement? Do you offer things like curbside trash removal whereas there is trash service offerred by the municipality, can you change light bulbs to be more cost effective, insulate water heaters, provide new air filters for tenants to improve efficiency and reduce costs...

Finally, Is there a clear advantage gained by making the improvements and abosrbing the immediate outlay of expense? Rental Increase with improvement... (New windows equals a $25 p/unit increase)

Scenario

$6,000 for new windows and insulation

$25 increase per unit (we'll say 4 units)

$1,200 per year gained in rent

5 years to recoup the cost of window replacement

Can you handle the approximate costs and term for reimbursement for this improvement?

Get up, Get out, Get Going!

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sun, 19 Apr 2009 07:05:39 -0500

This feels like a day we all sometimes need a boost or we let the little things get to us.... traffic jams, rude people, bad weather, annoying relatives, appliance breakdowns, etc...

I'm there now, and after I watched a video submitted by Tami Vroma, I started to fill the void left by the negative (I think the second Ghostbuster's sums up the feeling) encounters.

I felt I needed some more holiday inspriational fodder, and I remembered seeing this video a few years back and with a quick youtube search came across it and could not wait to share it again. It is a motivational, pick-you-up-by-your-bootstraps, get up, get going, feel alive video that can move mountains... I mean seriously, how awesome is this guy! Anyhow, clear 10 minutes from your schedule and be prepared to be inspired!

Banana Pancakes in the Orange Room...

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sun, 19 Apr 2009 06:52:18 -0500

Guaranteed to put you in a good mood

http://www.youtube.com/watch?v=rK0LWsEcSjM

Enjoy!! and Have a safe Weekend!

~ Sean Dreznin

Welcome Message

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Sat, 18 Apr 2009 07:54:02 -0500

To all who join this group...

We welcome you for taking the first step on a path to increased health knowledge. We hope this group can become a catalyst to your fitness, diet and motivation to inspire others.

Please post health related articles, stories, ideas and personal achievements or goals.

As of January 1, 2009, I weighed 260lbs and was unhappy with my health..

today is April 18th, 2009 and I weigh 230 lbs and have begun Phase II of my comeback... My goal is to lose another 30lbs and continue to improve my health.

We wish you the best and look forward to meeting you here for good conversation.

Best Regards,

Sean Dreznin

The Making of a Landlord

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 17 Apr 2009 18:03:47 -0500

I saw the story's title and was instantly drawn to it. A wonderful, realistic read. I hope you enjoy as much as I do. <----"The Landlord of the Shadows"

written By Christopher Palmeri s a senior correspondent in BusinessWeek's Los Angeles bureau.

I was chased by a wild dog.

I saw a home so stripped someone had even taken the front door. I attended a foreclosed-home auction that featured cheerleaders yelling in my ear. Finally, in March, I closed on a home I'm now renting out as an investment property.

I paid $125,000; it had sold for $345,000 four years ago. In my one-year search, I came to expect surprises and to realize that even a good credit score doesn't get you far.

One thing I learned: Avoid foreclosure auctions. The homes need lots of work, and most buyers don't have time to do proper inspections.

Ditto for "short sales," where an owner tries to sell a home for less than what he owes the bank. There are too many decision-makers involved. I made an offer on a short sale. Nine months later it's still on the market.

I began my search in my Los Angeles neighborhood, but even with a big down payment, prices hadn't fallen enough to produce positive cash flow for a rental property. So I searched Realtor.com for homes in suburbs a train ride away that seemed likely to have job growth. I found a two-bedroom, one-bath Spanish-style bungalow listed for $129,000 in Ontario, Calif. I offered $123,000; we settled on $125,000.

I figured getting a loan would be easy. I have good credit, no debt, cash in the bank, and a job. I was pre-approved for hundreds of thousands of dollars. Bank of the West wanted to charge me five points -- a $5,000 fee to borrow $100,000. Says a bank spokesman: "Higher points for an investment property reflect the higher risk on that mortgage." A rep at a major national bank said it wasn't "competitive at loans under $100,000."

LendingTree.com promised to find me five offers in 48 hours. Two days later it said it couldn't help.

Ultimately, an independent broker, Los Angeles' Legend Mortgage, found me a loan with an institution I had never heard of, Burlingame (Calif.)-based Provident Funding Associates. I had to put down more than planned: 25%. And I'm paying 6.2% and one point in fees, more than the 5%, without points, I would have paid if the house were to be owner-occupied.

Provident put me through the wringer. Bank statements, tax returns, notarized interspousal escrow instructions. At one point, I was scraping and painting a house I didn't own because the lender wanted damage repaired. I was out about $1,000 for inspections and other work before I was even sure I was going to get the loan.

The bank that owned the property wasn't much fun, either. With such properties, banks offer a tight window for you to cancel your purchase based on inspections -- seven days, in my case. And the bank wanted me to pay $100 a day if I didn't close on the agreed day. This led to stress -- and requests for waivers -- on my end. On the bright side, bank-owned properties commonly sell "as is," but with mine the bank paid more than $5,000 for a new sewer line, termite abatement, and other repairs.

Then it was time to rent it. I checked similar properties on Craigslist, then underpriced the rent at $1,100 a month to get a tenant fast. I had 16 interested parties in a few days. Some of the stories were heartbreaking -- families living in cramped apartments and on food stamps just wanting a house for their kids. I showed it to two people and took an application from one, verifying employment and paying $30 to MySmartMove.com to check his credit. In the end, my total cash investment was $47,000. Payments -- taxes, insurance, everything -- will be $750 a month (plus any repairs). If my tenant pays me for a year, I'll get a 9% return, not including tax advantages or price appreciation.

If being a landlord is a hassle, the hope of a 9% return will ease the pain.

We wish you the best of luck Mr. Palmieri, the best of luck!

You've got the whole city in your hands... Repeat (x4 times) (Sung to "Whole world in our hands")

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Fri, 17 Apr 2009 11:08:35 -0500

Lebron James is the chosen one...

This is documented both by his self-proclaimed nickname and most likely substantiated by most Ohioans as well.

Now the hard part. This is the year for a championship for the most championship starved states in the entire 50. We are honoring Ohio State, but we are talking professional here...

So in the big picture.

Browns - what, 1964

Indians - never? but real close a couple times (while the Marlins have won twice... salt in the wound)

Cavaliers - never but 2009 looks real good.

Kevin Garnett has in essence sold his soul (health) for a championship and will not be able to give anything to the Celtics this season---

So in reality, the LA Lakers appear to be the only contender for the Big Trophy...

Cavs in 6 for the Championship that Northeast Ohio deserves...

Let's do this Candyman

You can't spell "Braylon Edwards" without "drop"

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Thu, 16 Apr 2009 11:49:55 -0500

The rumor swirling these days is that Braylon Edwards is on the trade market and a few teams are sniffing around.

Specifically, the New York Giants, who released Plaxico Burress earlier this year after his well documented off-field weaponry skills. The talk is Braylon for a 1st round and 3rd round pick.

I believe the Browns should make this trade and wash their respective hands of Mr. Edwards. The relationship has reportedly soured a bit and his production shadowed the teams dropoff last season.

Braylon has been in the league for 4 years... He had one amazing season! Now while a .250 average in Baseball may get you a multi-million dollar contract and fame, 1 good season out of 4 in the NFL will get you cut or traded.

Mangini should make this trade and move on, like it appears a majority of northeast Ohio already has.

Sean

A little Motivation for today and tomorrow... and so on....

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Thu, 16 Apr 2009 09:44:35 -0500

http://tv.yahoo.com/slideshow/422/photos/1

Do you want a body like this? Keep reading below the picture...

Contestants on "The Biggest Loser" lost anywhere from 40 lbs to 140 lbs... 140LBS ... in 14 weeks...

Now granted, they have trainers and catered food sometimes, but alas, we all have the ability to choose what we put into our mouths and how we live and exercise...

Get up, Get out, Get Going!

Sean

General Growth (2nd largest U.S. Mall owner) files for bankruptcy protection

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Thu, 16 Apr 2009 09:30:35 -0500

General Growth Properties Inc, the second largest U.S. mall owner, filed for bankruptcy protection on Thursday in one of the biggest real estate failures in U.S. history.

Ending months of speculation, the Chicago-based mall owner, which listed total assets of $29.56 billion and total debts of $27.29 billion, sought Chapter 11 bankruptcy protection from creditors along with 158 of its more than 200 U.S. malls, while it seeks to restructure some of its debt.

Since November, General Growth has warned that it may have to seek protection from its creditors when it was unable to refinance maturing mortgages. The company said in a statement that it planned to continue exploring strategic alternatives during the bankruptcy protection, from which it is seeking to emerge as quickly as possible through a reorganization that preserves its national business.

General Growth's filing in the U.S. bankruptcy court in Manhattan makes it one of the largest nonfinancial companies to succumb to the financial crisis in the U.S. Before the bankruptcy protection filing, the company had defaulted on several mortgages as well as a series of bonds. It has also put several of its flagship properties up for sale.

Analysts and other real estate experts have speculated that mall owners Simon Property Group Inc and Westfield Group would be interested in buying some of General Growth's assets from bankruptcy.

General Growth has been generating enough cash flow for the company to pay monthly interest costs and expenses, but it has been unable to refinance the principal of loans and mortgages as they come due because banks and other financing sources have been reluctant to issue large mortgages and loans.

"Our core business remains sound and is performing well with stable cash flows," General Growth Chief Executive Adam Metz said in a statement. "While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11." General Growth has received a commitment for a debtor-in-possession financing facility of about $375 million from Pershing Square Capital Management LP, as agent.

The hedge fund run by William Ackman also owns about 25 percent of General Growth shares. Ackman, who has been urging General Growth to file for bankruptcy protection, described it as "a great company" with "phenomenal assets" at a conference on April 2.

At the end of 2008, about $15.17 billion of General Growth's debt was comprised of mortgage loans that had been securitized into commercial mortgage-backed securities, according to research firm Trepp. "This underscores that real estate companies are most vulnerable to refinancing risk rather than market risk," said Nomura's London-based property analyst Mike Prew. "The U.S. insolvency process is, we think, a cure for General Growth's liquidity problems, which stem from external factors, and not a traditional bankruptcy per se."

Shares of General Growth have deteriorated as the credit crisis worsened. They closed at $1.05 in the United States on Wednesday, making the company's market capitalization $283.90 million, down from $11.l8 billion when it traded at a 12-month high of $44 in May. S

o far, fallout from the General Growth bankruptcy has not hit European mall owners. Europe's biggest mall owner, Unibail Rodamco, was trading up 2 percent at 118.69 euros, while Anglo-French retail specialist Hammerson edged up 0.2 percent to trade at 307.75 pence.

For the full article (Reporting by Ilaina Jonas, Emily Chasan and Sinead Cruise in London; editing by Elaine Hardcastle and Lisa Von Ahn) and a history of the company, click here <----

The Dave Matthews Band - Big Whiskey - New Single from New Album in memorium of Leroi Moore... Just Beautiful!

Sean Dreznin, Commercial Investment Real Estate Agent (Pappas Realty Co.) — Wed, 15 Apr 2009 17:32:05 -0500

http://www.youtube.com/watch?v=C2XHL51EW74

Funny The Way It Is

Dave Matthews Band

Big Whiskey & the GrooGrux King

Lying in the park On a beautiful day

Sunshine in the grass And the children play

Sirens passin

Fire engine red

Someones house is burnin down

On a day like this

The evening comes

And we hang out

On the front steps

And a car rolls by with the windows down

And that old song was playin

Why cant we be Friends

Someone is screamin and cryin

In the apartment upstairs

(CHORUS) Funny the way it is

If you think about it

Somebodys going hungry

And someone else is eating out

Funny the way it is

Not right or wrong

Somebodys heart is broken

When they play your favorite song

The way your mouth feels

Your lovers kiss Like a pretty bird on the breeze

Or water to a fish

A bomb blast brings the building

Crashing to the floor

Hear the laughter

While the children play war

Funny the way it is

If you think about it

One kid walks ten miles to school

Anothers droppin out

Funny the way it is

Not right or wrong

On a soldiers last breath

His babys being born

Standing on a bridge

Watch the water passin under me

Musta been much harder when

There was no bridge just water

Now the world is small

Where the highway used to be

Were mountains and oceans

And winters and rivers

And stars

Watch the sky the jetplanes

Over out of my reach

Is there someone up there

Lookin down on me

A boy chases a bird

So close but every time

Never catch her but

He cant stop trying

Funny the way it is

If you think about it

One kid walks ten miles to school

Anothers droppin out

Funny the way it is

Not right or wrong

On a soldiers last breath

His babys being born

Funny the way it is

Not right or wrong

Somebodys heart is broken

When they play your favorite song

Funny the way it is

If you think about it

One kid walks ten miles to school

Anothers droppin out

Standing on a bridge

Watch the water passin under me

Musta been much harder when

There was no bridge just water

Now the world is small

Where the highway used to be

Were mountains and oceans

And winters and rivers And stars