Mina Garrey - Commercial Capital Properties

How safe is your building?

Fri, 25 Jul 2008 19:00:54 -0500

As a property manager for both multi-family and office/retail properties, one of the most pressing issues always has been SECURITY!

What can you do to improve security? What are all the options you have? How much is it going to cost? All of those are legitimate questions with very different answers depending on the size, location etc of the property. A detailed analysis is always recommended before deciding what security features to implement.

Following is a list of security features your property can provide. Some are quite inexpensive, while others may need a more carefully planned out budget and be classified as capital improvements.

1. Lighting in the Common Areas - one of the most cost-effective ways to improve security and one of the fastest to implement is proper lighting. With continued innovation in energy-efficient lighting it is becoming an almost necessary upgrade. Sufficient lighting not only promotes the feeling of being safe, but it deters intruders from entering and vandalizing a property.

2. Doors, Locks, Windows - as a routine part of your annual inspections, make sure you pay close attention to make sure all are operable. Anytime a window does not close properly, it becomes a flaw of the unit and creates a potential security breach opportunity. Regardless of the quality of locks, windows and doors, if an intruder really wants to break in, they will. The objective is to deter such activity. Locks should generally be changed after a tenant moves out, to ensure the security of the new occupant. Even if all keys have been returned, it doesn't mean that non were made prior to returning them.

3. Security Gates - there are many different kinds of gates (swing-up, roll-up, sliding etc). The type to use will largely depend on the amount of space you have, the amount of traffic that will be going through the gates, and the amount of money you want to put into it. There are just as many access controls for gates as there are types. Gates can be operated with a remote control, access card, keys etc. Depending on your budget and security requirements a decision should be made.

Card Access Control - if you desire to keep track of who goes in and out, that would be one of your options. It also offers the benefit of when a tenant moves out, to just delete their access code from the system. This will eliminate the need to collect access cards prior to move-out. Purchasing access cards is inexpensive.

Keys and remote controls - are effective, however a little more expensive because of the cost of making keys and purchasing remote operators. In addition, the level of security is compromised, because both can be purchased and programed or made at a nearby locksmith or hardware store.

4. Security Cameras - an excellent choice to solve issues when any arise, since it is all recorded and can be played back at a later time. With current digital technology, eliminating the need for video tapes, DVDs have definitely made this type of security feature more feasible cost-wise for many types of investment properties. The cost of purchasing the cameras and wiring them may be extensive. Proper lighting would also be a pre-requisite to make sure you record clear images.

5. Security Guard - can be very effective and provide the greatest sense of security to a tenant of any building, but is associated with an extremely high cost. A full time guard on the premises, can cost well into the $1000s a month. A security patrol vehicle can be a more cost-effective choice. This type of service will send by a vehicle to inspect the premises randomly throughout the day or night and report any unusual activity.

There are additional ways to ensure the safety and well being of your tenants and property. Keep in mind that proper security will make your building a more desirable place to rent and will also allow you to charge premium rental rates because of that. As stated before however, no one security control is 100% effective by itself. If someone has decided to enter the premises without authorization, they will. You can however, do as much as possible to deter those people from doing so.

If you have any additional suggestions on how to secure your property, please share it with us. As a property manager, I always try to think of different ways to help a landlord avoid vandalism and help my tenants feel safe, and I hope you do too.

Is your rental property safe?

Fri, 25 Jul 2008 18:57:38 -0500

As a property manager for both multi-family and office/retail properties, one of the most pressing issues always has been SECURITY!

Following is a list of security features your property can provide. Some are quite inexpensive, while others may need a more carefully planned out budget and be classified as capital improvements.

Is your tenant covered?

Mon, 21 Jul 2008 19:15:59 -0500

Just recently I was reading through one of my residential leases to make sure that every paragraph is up to date and to see if there is anything I need to include due to changes and updates of local rental laws. I came across the paragraph talking about Renter's Insurance and it made me wonder how many of my tenant actually have this type of insurance coverage. I know that when a Lease is signed, I make sure to point that out to the prospective tenant and go over the importance of having the insurance. At the end of the day however, people can choose whether they are going to purchase the coverage.

As a landlord/property manager, I believe that it is important go over that with your tenant, because if something happened and you never mentioned it, you will have lots of explaining to do. Guess what, if something happened and your building burned down, the tenants will be knocking on your door asking "So who's going to replace all my stuff?" Well, your answer should hopefully be, "Remember the Renter's Insurance we talked about when you signed the Lease, did you get that?"

Here are a few facts about Renter's Insurance:

1. Most people think that they can't afford it - The truth is, Renter's Insurance is quite affordable. You can be paying as little as just over $100/year or a couple of hundred dollars a year, based on the size of your unit, deductible etc. So the coverage you will receive could be in the $20,000+ range. I think that's worth the small upfront expense and peace of mind.

2. But my landlord has insurance - That is correct, however the landlord's policy only covers the structure, not the tenant's belongings. In fact, if the tenant is the one who caused the damage due to negligence, they may be held liable for not just fixing the problem, but replacing the belongings of others if any were damaged.

3. I am not worried about security, my building's pretty safe - Well, surprise, Renter's Insurance goes beyond covering just your belongings. Most tenants don't have their own garage, they probably park in a parking area. If items get stolen from your car while you are parked there, the insurance is probably going to cover those. If someone slips and falls while visiting you, guess what? The insurance has coverage for that also. Some policies even cover your suitcases while you are on vacation, in case they get stolen.

4. I don't really own anything of value - You would be surprised how quickly $20,000 + of items accumulate. According to an article I read online, StateFarm.com found that most people own well over $20,000 worth of property. So all those electronics, appliances, books, CD's, furniture, jewelry etc. you have, if you lost all of it tomorrow, would you still say that it's worthless?

So, please encourage your tenants to get this voluntary coverage. It is both, for the protection of the tenant as well as the landlord. Above all, it buys you a peace of mind. And the minimal fees associated with the coverage are definitely worth it.

A friend of mine had his apartment broken in twice in 6 months. Prior to both times, I asked him if he had a chance to purchase the Renter's Insurance. Unfortunately, he didn't. He had to pay the heft price of replacing three computers (his and the two roommates) as well as all other valuables that were stolen. Now, isn't that worth the couple of hundred bucks?

Is your tenant covered?

Mon, 21 Jul 2008 19:14:16 -0500

Here are a few facts about Renter's Insurance:

Where are all the renters?

Fri, 18 Jul 2008 19:12:49 -0500

I recently read an article about the state of the apartment rental market and it was interesting to see that even with all the foreclosures happening around us, the demand for apartments has not increased dramatically. It has remained pretty flat. And even though the apartment rental market is still in excellent shape, vacancies are still low and prices continuously going up, the question becomes, where are all the people who used to own a home currently living?

Well, there are a few possibilities where those folks could be living currently:

1. Prior home owners may be more prone to renting another single-family residence vs an apartment.

2. They may be living with other family members to recover from the foreclosure nightmare.

3. They could have become eligible for affordable housing due to being a part of the larger financial collapse.

So, if you have any other suggestions as to where people are moving to after their homes are being taken, please share that with us. I read so many statistics on vacancy rates, pricing etc on apartments, office, retail etc, but you don't find that much information on this almost "shadow-like" part of the rental market.

After all, people have to live some place, the questions is where?

When can a tenant withhold part or all of the rent payment?

Wed, 04 Jun 2008 23:23:05 -0500

If you have rental property anywhere in the country, you may have a tenant or two who either have mentioned not paying or have already been withholding part or all of the rent because something wasn't fixed in their unit. But when can a tenant actually withhold money from the rent payment?

In California for example, a landlord has the duty to maintain a unit in a habitable condition. Habitability takes into account things like the roof, running water, heat, sewage, properly maintained stairs, a bug-free unit and a few other ones. The law does not extend to things like landscaping, cable TV, spas etc. So first of all when a tenant threatens to withhold money from the rent payment make sure the issue falls into the habitability category.

Second, you would want to make sure the tenant has given you proper notice of the necessary repairs. A tenant can't just show up on the first of the month, when rent is due, and say they are not going to pay you because something wasn't fixed, if they never notified you of the problem in the first place. You should be allowed a reasonable length of time to take care of the issue.

If you have been given proper notice, the issue does fall into the habitability category and you still fail to make the repairs then the tenant can complete the work and then deduct the amount from the rent. Please note that the tenant has to "repair and then deduct", not just deduct the amount. You should also require the tenant to submit the receipt for the work completed. You can also require that any work is to be done by a licensed contractor, plumber etc. You don't want the tenant's friend coming over, messing with your building and then charging you for work that they were not allowed to perform in the first place.

Remember, a tenant can't just stop paying rent, because you can then file an Unlawful Detainer Action against them. So follow the following steps and you should be in good shape for handling a tenant repair complaint:

1. Require for a notice with a reasonable time frame to be submitted to you detailing the problem

2. Do the repairs

3. The tenant can do the repairs, give you a receipt and then deduct the rent from the next rent payment

So, Good Luck and continue investing!

How do you know if you are taking a chance?

Thu, 17 Apr 2008 19:04:39 -0500

Quick question! How many times have you needed a plumber, an electrician, a contractor, an appraiser or any other type of business and you have looked online and in the phone book etc? The questions is, how do you know that the person or company you are calling and trusting to do the right thing is going to do a good job. Unless, you have personally worked with the company in the past or the referral is from a trusted acquaintance, you really are taking a chance.

See, me personally, I hate sitting around and waiting to see how things turn out. I want to know beforehand what to expect from this person/company. That's not to say that I am guaranteed a great experience, but at least you will know if someone else before you had a bad experience with the service of the selected person/company.

In today's world where the Internet makes it so easy to look up anything and everybody, why don't most people use it. There are various resources that can be used for FREE, to check someone's background, read a little bit more about that entity and maybe even get some references and feedback. Wouldn't you want to know if the person you are about to hire has any outstanding/unresolved violations, suspended licenses etc.

After all, we are in real estate, the field where we should live and breath the need for thorough due diligence and watch out for scams, not just for our clients, but also for ourselves.

Here are some of the resources I use on a regular basis to get acquainted with all the people out there offering a service that I may need one day.

CONTRACTORS LICENSE check (in California):

www.cslb.ca.gov

CORPORATION/LLC LICENSE check (in California):

www.sos.ca.gov/business/

APPRAISER LICENSE check (in California):

www.orea.ca.gov

REAL ESTATE LICENSE check (in California):

www.dre.ca.gov

BETTER BUSINESS BUREAU info check (in the US):

www.bbb.org

BETTER BUSINESS BUREAU info check (in Souther California):

www.labbb.org

DBA LICENSE check (In Los Angeles county):

www.lavote.net

You can also do a random name and company check on Google, Yahoo, MSN etc. See what the search engines pull up. It does not hurt you, it takes little to no time at all to do the search and it gives you a peace of mind.

So, I challenge you, to go out there and start digging a little bit before you just call someone "who seems professional" and pay them a whole bunch of money, only to find out they are worth a whole bunch of headaches and aggravation after a job badly executed!

A terror-proof building? Is that possible?

Thu, 10 Apr 2008 12:38:38 -0500

Just recently I was reading about the United Kingdom and their issuance of directives on how to design terror-proof buildings which are to provide protection against vehicle bomb attacks from IEDs (improvised explosive devices). According to the article, the British government is urging architect to design buildings which have among other things, panic rooms, truck bomb barriers etc.

Here are some of the restrictions placed on architects to work with:

1. windows are to be NO larger that 3 sq meter

2. avoid using masonry cladding on building higher than 2 stories

3. use concrete and steel blockades outside the building

4. incorporate building setbacks/standoffs

etc. etc...

Needless to say, many architects and government officials argue that it is "idiotic" to follow these guidelines. According to them, these kind of practices will lead to an "ugly, inhumane urban environments". They also argue, that there is no such thing as "terror-proof building". Attacks come in so many ways, sizes and shapes that it is virtually impossible to be prepared for each one of them. According to them, education, not legislation is what will help prevent attacks. If people are properly trained to be aware of their environment and report to the proper authorities in case of suspicious activities, that is what will minimize any potential attacks. Some officials agree that calling a building "terror-proof" may give people a false sense of security and discourage them from staying alert and reporting possible suspects.

In the US, according to the article, the US General Services Administration (GSA) is trying to incorporate high-performance materials, methods and landscaping setbacks to minimize any IED impact.

An architect should be encouraged to explore the depths of their imagination when it comes to the aesthetic look of a building. They don't mind designing fortresses and castles, but not in an urban society. Architects want to design structures that encourage human interaction and not isolation. In the process they have to figure out how to make the building as safe as possible by implementing newer, safer, blast-resistant materials and not by creating a cave-like environment.

So, I wanted to ask what you think. Do you think a "terror-proof building" is possible to exist or do you believe that educating the public is the way to go about it while maintaining a modern, urban, creative-expression life style?

I support:

Sun, 06 Apr 2008 14:08:42 -0500

As all of you know, sometimes life presents us with challenges that can throw our daily lives out of control. Two of those challenges are finding out that a friend or family member is diagnosed with Breast Cancer or them being called to Military Duty to serve our country and protect us all. In either case the outcome may be deadly, and that’s why I believe that it is of utmost importance to support those heroes.
I personally have been in both of those situations, having people in my immediate family be diagnosed with Breast Cancer and having a loved one be called to protect our country. So, I ask you all to join me in supporting those people in thoughts and prayers or any other way you can. Thank you!

http://www.123glitter.com/comments-graphics/

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I support:

Sun, 06 Apr 2008 14:07:30 -0500

How would you like to pay a "non-refundable deposit"?

Thu, 03 Apr 2008 20:54:26 -0500

How would you like to pay a "non-refundable deposit"?

Hi Everyone,

Let's talk about "non-refundable deposits" for a minute? What? Non-refundable deposits? If you are a property manager, like me, I hope your heartbeat is going up and you are ready to tell the person who said that that they are full of...! If you experienced this emotion, congratulations, you are on the right track to being a great property manager, who understands the importance of staying out of the courtroom.

Anyway, I recently read a letter from an unnerved tenant written to Apartment Management magazine. The tenant was asked to pay a $90.00 "non-refundable key deposit" (here we go again). First, I would like to clarify that, especially under Los Angeles rent control law, there is no such thing as a non-refundable deposit. A deposit is only that, a deposit, which is to be refunded or what is left of it, to the tenant within 21 days of the tenant vacating the unit. Items that can be deducted from a deposit are things above the normal wear and tear of a unit. You can also deduct the actual cost of replacing non-returned keys, remote controls etc.

A fee on the other hand, may only be charged for permissible purposes and charged at the time that the service was rendered. If for example, a tenant deliberately damaged the locks and threw the keys away (why would someone do that, you may wonder), then the landlord can charge the tenant the actual cost for replacing the locks, once the work was completed.

So, I hope you can differentiate between a deposit and fees, to make sure you are not violating any local laws.

Private Entities exercise the power of Eminent Domain!

Wed, 02 Apr 2008 11:41:46 -0500

As a real estate agent/broker/manager etc you have probably heard of eminent domain. It is the power of the government to take private property for the public benefit (ex. build a hospital, school, widen a road etc). In the process, the property owner is entitled to just compensation based on fair market value.

In recent times however, the government has exercised their power to take private property for the benefit of a developer or commercial interest. So the question becomes whether that's acceptable.

In one of the most famous cases, which went to the Supreme Court (Kelo vs City of New London), people were forced to sell their homes to the New London Development Corporation (a private entity under the control of the local government). NLDC was supposed to redevelop the Fort Trumbull neighborhood by building some retail shopping areas, some condos, a conference center etc. All this was decided after Pfizer, a giant pharmaceutical company, built a new research plant in the Fort Trumbull area and NLDC was supposed to help bring more business to the area and stimulate the local economy.

Other cases I have heard about, are ones where people's property was taken to build a big-box store (ex, Home Depot, Lowe's etc) or stores like CVS or Walgreens. All of those are private corporations, and even the Supreme Court has allowed for them to acquire the land they need. I sometimes wonder whether the government officials who make those decision, may have too much discretion as to who gets what.

In California for example, elections to be held in June 2008 will attempt to limit that government power of eminent domain to its original purpose, disallowing large, wealthy corporations to snatch your property for their own benefit.

So, my questions to you is, do you think a private entity should be allowed to make use of the government's power of eminent domain?

How should you run your brokerage business?

Mon, 31 Mar 2008 10:27:37 -0500

If you look at the real estate market closely, you will realize that there are an unlimited number of options and paths you can choose to take to grow and expand your business. So, sometimes the question becomes, should you specialize in one area or should you provide an array of different services to your clients.

Well, generally specialization is preferred, especially if you are a smaller company with limited staff. Specializing gives you the opportunity become an expert in your field, and also given a limited advertising budget, you can target the exact group of people that you are catering to.

Diversifying is wonderful, if you have a staff of experts each in their own field. This way you can maintain a number of different services all within the company. I am sure customers will appreciate working with the same company on an array of transactions. Diversifying into a few different areas of real estate may get risky however, because you may be spreading yourself thin and with that to lack the professional expertise necessary to provide the best service that you can.

In times like these where companies see a decline in business, I see many real estate agents/brokers reach out to do property management, leasing, staging etc. I think that's great, but be careful and try and learn as much as possible before you start offering the service to the general public. After-all you would not want to tarnish the name of your long-hard-worked-for-success because of and additional service that you were lacking in professionalism and knowledge.

So, depending your desire to learn a new field within the real estate industry, I would encourage you to add other services to the ones you already offer, only if you are confident that you know what you are doing. Other than that, refer the business to someone who you know is going to do a great job.

I would rather the customer come back or refer someone to me for the one specialized service I offer, than to never come back because not all of my services were of exceptional value and provided excellent understanding.

When is unreasonable, way too unreasonable?

Fri, 28 Mar 2008 11:28:47 -0500

Not too long ago, I had a real estate agent contact me with a request. Given that I am involved in Property Management, I was asked if I can lease a condo for one of her customers. Apparently, the person had bought a condo in the Los Angeles area at a price way above fair market value (awful deal!), so he no longer was able to afford the payments, nor could they sell the place (it is located in an area of high value loss), so he decided to rent it out for a ridiculous price to not only cover his mortgage payment, but to also make a profit. They also refused to make any type of improvements to the place to gain more rental value. On top of all that, I was supposed to find someone who wants to sign a 1 or 2 year Lease. What? At that price?

The problem here is that the agent told their customer that that would be no problem, because I am really good at what I do, so she's sure I'll find someone to rent it.

Now, I may be great (I appreciated the complement), but I cannot do magic. I did some research, added amenities, tried to include as much as I could into the rental price, but my final estimation was at $2300/month (pushing the upper limits).

Here is brief description of what I was dealing with: 2 bed/1 bath, 900 sq ft condo, 2 parking spaces, balcony, pool in complex, unfurnished, no view from either side, no refrigerator, not walking distance to anything, non of the utilities were included, worn down carpet, old kitchen cabinets, and overall a dismal shape. Asking price $4200.00/month.

I thought about it, and there was no way, I was going to scam some tenant (if one was interested at all) into paying a ridiculous amount of money for a place like that. I have pride, and I want to feel confident that I am offering a good product. I want to be able to sleep at night feeling good about my work, not guilty. I tried and tried to explain to the owner that he needs to be reasonable. The thing that struck me is that the real estate agent who referred the business to me, also didn't seem to realize that what her customer was asking for was just not going to pan out. Would you buy a house for $1Mil if you could buy the same house two doors down for $650,000?

Anyway, I finally refused the work and moved on with my day-to-day activities to some bigger and better things.

Please tell me how you would have handled the situation, or if you have any stories where you had to refuse business because one of the parties was unreasonable?

Thank you.

When is unreasonable, way too unreasonable?

Fri, 28 Mar 2008 11:27:24 -0500

The problem here is that the agent told their customer that that would be no problem, because I am really good at what I do, so she's sure I'll find someone to rent it.

Anyway, I finally refused the work and moved on with my day-to-day activities to some bigger and better things.

Please tell me how you would have handled the situation, or if you have any stories where you had to refuse business because one of the parties was unreasonable?

Thank you.

Weak US Dollar - despair or celebration?

Thu, 27 Mar 2008 13:40:22 -0500

I talk to quite a few people each and every day and regularly do I hear people's concern about the weak US Dollar. But how much of a concern should it be?

The answer largely depends on how you are looking at it. A weak US Dollar may actually be great for the US economy in the short run. A weak currency makes US exports cheaper and therefore more affordable to foreign buyers, which in turn helps close trade deficit. American manufacturers can sell more at lower prices, so companies like Boeing and Caterpillar love the weaker dollar.

A weak Dollar is also great for attracting tourist to the US. A European traveler's Euro or British pound will go a lot further than it used to. American retailer's will also benefit from the tourist's spending, putting more money into the overall economy. It is like going to a department store and everything is 30% off. You may spend more than you anticipated because it is a bargain to you.

The weak Dollar also stimulates the US Education sector. More foreign students are able to come to the US to study. Even though, US education for an International Student is still quite costly, it is cheaper given the Dollar's value currently.

Then people ask, how about the stuff you buy at Wal-Mart etc where a lot of it comes from China? Well, here is the good news: The Chinese currency, the yuan, is tied to the dollar, so in essence a weaker or stronger US dollar does not greatly affect prices.

Now here is the bad news: To compensate for the dollar, oil-rich nations charge more per barrel of oil, which in turn increases gas prises in the US. Another impact is created when traveling. A US tourist in France, for example, will be able to spend less money because the prices are seemingly higher.

So, in the short run, a weak dollar is not necessarily bad, in the long run though foreign investors may be less likely to invest in US Treasury securities without a higher interest rate, which in turn makes it more difficult for US consumers to borrow money, which is bad.

So, in my opinion, nothing's bad until it becomes an extended or permanent condition in the US economy.

Please post any thoughts you may have. All feedback is greatly appreciated, because it helps gain different perspective on an issue that we are all affected by.

Thank you!

Weak US Dollar - despair or celebration?

Thu, 27 Mar 2008 13:39:06 -0500

I talk to quite a few people each and every day and regularly do I hear people's concern about the weak US Dollar. But how much of a concern should it be?

So, in my opinion, nothing's bad until it becomes an extended or permanent condition in the US economy.

Please post any thoughts you may have. All feedback is greatly appreciated, because it helps gain different perspective on an issue that we are all affected by.

Thank you!

Where should you put your money?

Wed, 26 Mar 2008 11:44:37 -0500

During times of financial crisis, especially when the credit market is involved, many times people wonder where should they keep their money. Depending on your tolerance of risk, the options are limitless. If security and safety is your primary concern, here are a few options you have:

1. Treasury bills (T-bills), which you can buy directly from treasurydirect.com, are by far the safest investment there is. They carry no risk of default and because they are short term investments, rising interest rates do not affect them.

2. FDIC insured (up to $100.000) money-market accounts are another safe choice. The average yield is currently about 3%, but higher rates are available if you do a little research.

3. Bank CD's are also an option. Rates differer depending on where you purchase those. But if you don't mind locking your money in for 3,6,9 months or a year, this may be a good investment for you.

4. Money-market funds, such as the ones held at Fidelity, T.Rowe Price, Vanguard etc are a sound investment, given the companie's conservative portfolio management and low expenses. Keep in mind however, the value of the fund if not guaranteed to go up, it may loose value as well.

Anyway, in a credit crisis as we are experiencing right not, liquidity and safety of funds may be important to the nervous investor. But please remember, do not kep your money in a "safe" place your entire life. With the current inflation rate at about 4% per year, the value of your money is eroding, so when we near the end of the current financial crisis, please do me a favor and take a risk, get out of your comfort zone and make a couple of risky investments. You may just be surprised how well you do.

Keep investing!

Where should you put your money?

Wed, 26 Mar 2008 11:43:12 -0500

2. FDIC insured (up to $100.000) money-market accounts are another safe choice. The average yield is currently about 3%, but higher rates are available if you do a little research.

3. Bank CD's are also an option. Rates differer depending on where you purchase those. But if you don't mind locking your money in for 3,6,9 months or a year, this may be a good investment for you.

Keep investing!

Is consistency out of style?

Tue, 25 Mar 2008 14:58:47 -0500

Like many of you, I sometimes wonder, what makes a person successful? Is it the amount of money they make? Is it the number of people they know? Is where they live, what car they drive etc. that makes them successful?

Well, I guess he answer would probably depend on the person. Then I came across a quote that really caught my attention:

"Success, the real success, does not depend upon the position you hold, but upon how you carry yourself in that position." (Theodore Roosevelt)

Well, here is my take on success: You have to be consistent! Consistent in the way you treat people, consistent in the way you carry yourself, consistent in your advertising messages etc.

Sometimes, I fell like Consistency is out of style. I talk to tenants, contractors, landlords, etc all day long and what was acceptable today is no longer acceptable tomorrow. Even a company like Home Depot or Lowe's change procedures every time I call. What is the world coming to?

To me, consistency builds trust, reliability, exceptional work ethic, promotes organized work habits, prevents unnecessary violation of local, state and federal laws etc. In Property Management, for example, most lawsuits happen because of violations of law and the reason is the lack of consistent tenant screening, move-in/move-out procedures etc. So many problems could be prevented, if only people consistently did their due diligence and were not trying to cut corners.

If you consistently wake up each morning, excited to do what you do, then chances are you will eventually be successful at what you do, because you love it and you ill give it your all.

So, what is so hard about being consistent? Why do people get flaky? Please help me figure that one out. I would love to hear from you.

Is consistency out of style?

Tue, 25 Mar 2008 14:57:17 -0500

Well, I guess he answer would probably depend on the person. Then I came across a quote that really caught my attention:

"Success, the real success, does not depend upon the position you hold, but upon how you carry yourself in that position." (Theodore Roosevelt)

Well, here is my take on success: You have to be consistent! Consistent in the way you treat people, consistent in the way you carry yourself, consistent in your advertising messages etc.

If you consistently wake up each morning, excited to do what you do, then chances are you will eventually be successful at what you do, because you love it and you ill give it your all.

So, what is so hard about being consistent? Why do people get flaky? Please help me figure that one out. I would love to hear from you.

What does the future hold?

Mon, 24 Mar 2008 12:02:01 -0500

I was just reading Fortune magazine and came across and article that got me thinking: The Hour Draws Near: When will Social Security start trickling away?

According to the article, Social Security will become an issue long before the projected "2039 or whatever". The problem is expected to become apparent in less than 10 years, when Social Security starts taking in less and spending more. The reason why, according to the article, is because the fund owns nothing by Treasury securities and those will be unable to cover the program's shortfalls. (please read article in March 2008 issue of Forbes for more information).

Anyway, how does that tie in to real estate? Well, here is how. Currently, over 50% of a family's wealth is in the value of their home. With that in mind, in less than 10 years, people will no longer be able to rely on the hope of collecting Social Security, so what are they going to do? My suggestion would be, turn to the wealth you hold in your home, whether in refinancing and pulling out cash or doing a reverse mortgage, you will have options. If you do not own real estate, what do you do then? Maybe you have savings (best case scenario), but if you don't, you will be left with little or no income.

Having said all this, I believe that it is our duty as real estate professionals to educate our prospective clients and helping them get into an affordable home of their own. In today's world, people have to plan way ahead, because you don't know what the Federal Government will have to offer 10, 20 or 30 years from now. The real estate market may be slower today than a year ago, but real estate has proved to be a very safe investment over the long run. If your client purchases a home today, their price may go down in the next year or two, but eventually it is almost guaranteed that will in increase in value. Land is becoming and expensive natural resource (limited availability), and coupled with the population increase projections, it has nowhere to go, but up.

So, instead of telling people to purchase a home, because it is the American Dream-thing to do, tell them the truth, that it may really be one of the ways to secure a comfortable retirement.We are not just agents/brokers, we are educators and it is our duty to try and ensure that people understand the importance of investing in real estate.

What does the future hold?

Mon, 24 Mar 2008 12:01:32 -0500

I was just reading Fortune magazine and came across and article that got me thinking: The Hour Draws Near: When will Social Security start trickling away?

Why would someone evict a great tenant?

Fri, 21 Mar 2008 10:54:08 -0500

You probably know or if not, common sense would tell you that renters who do not pay their rent, are going to be evicted. No landlord wants to have a non-paying tenant occupying their rental space. But what about the people who have always paid on time, are great tenants and are still being evicted? You may be wondering why someone would do that. Well, here is what's going on:

According to the California Association of Realtors, in California an estimated 20% of foreclosed single family homes are occupied by renters. So, currently when the bank forecloses on the property they try and get the tenants out as soon as possible, sometimes with no notice at all. Many times the bank would turn the property over to a property management company which is to step in and remove the tenant from the premises. Well, that's all fine, however in California and many other states, there are still cities governed by the local Rent Control board. In those cities, local laws will not permit you to kick someone out of their residence just like that with no proper notice. In fact, you may be required to pay tenants a large sum of money to relocate them (for example, in Los Angeles, relocation cost can run as high as $17,080/per person for a qualified tenant).

In some parts of California though, the bank or property management company will offer approximately $500.00 to the tenants if they agree not sue. Now that's what I call low-balling! With help of an attorney, however, the bank will back off a little bit and give the tenants some time to move out.

Fortunately for tenants, there is a bill in Congress that would give the tenants 90 days' notice when their rental has been foreclosed on. It's been approved by the House and awaits action in the Senate.

What do you think, should the banks have the right to kick out a perfectly good tenant without proper notice?

One of the most important votes you can ever cast, California!

Thu, 20 Mar 2008 18:12:39 -0500

Your help is needed to protect your property

You are now reading what is one of the most important and crucial articles that you will read this year in regard to keeping or losing your property rights. Please take every word of this article more seriously than any other article you have ever read.

Prop. 98 will on the California June ballot, and if you currently have or are thinking of owning real estate in California, it becomes your responsibility to vote "YES" on Prop. 98 and "NO" on Prop. 99.

Why should you vote for Prop. 98 to protect your Property Rights?

Because it will make ownership of homes, rental property, farms and churches a protected right! It will prevent politicians from using unfair “eminent domain” to seize property for the exclusive use of their developer friends to build big box stores and shopping centers. These new development projects put profits into the developer’s pockets and donations into the coffers of politicians who vote to unfairly take property from small property owners.

The Good - Prop. 98

Prop. 98 does legalize fair eminent domain that is used to take property at a fair market price for legitimate purposes such as roads, schools, parks, fire and police stations, water projects and for other legitimate government purposes.

Prop. 98 also protects all current tenants under rent control who will keep their rights and will not lose their homes. It phases out rent control for that individual unit only when a tenant moves out. It’s called permanent decontrol. The law currently requires temporary decontrol. It also prevents new controls in cities that currently have no rent control.

Prop.98 is the only measure, which provides protection for farms, small business owners, rental property owners, and places of worship. It will protect your property!

Vote “YES” on Prop. 98 to protect your property!

The Bad – Prop.99

Prop.99 is being sponsored by greedy politicians and developers who want to continue to take your private property to be used for development projects. It would protect only owner-occupied homes. They reluctantly put it on the ballot to stop Prop. 98 so they could continue to take all other property. It is nothing more than a “cover measure” and is a very deceptive political move to trick voters into thinking that Prop. 98 is not necessary. It will allow developers to continue “business as usual”. It also has a hidden agenda that cancels out Prop. 98 if it gets more votes.

Please do not fall for it. Let’s put a stop to these greedy developers and politicians who want to seize our property and put donations and profits into their pockets.

Vote “NO” on Prop. 99 if you want real and fair reform!

Please feel free to mail, e-mail, print out and hand out, fax ets. the above article to anyone you know, so we can get Prop. 98 passed and make sure "eminent domain is used for its intended purpose!

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