Carlos 's Blog

California Realtors Alert Alert Contact your State Assemblymen

2008-04-24T19:34:59Z

REAL ESTATE LEGISLATION

ALERT

*** IMPORTANT ISSUE ***

There is Bill before the State Assembly, AB 2678, (Nunez) that would be disastrous for all Californians, upon the sale of any residential home, including rental property, as well as any commercial property sold in the State of California.

The provision of this Bill, AB 2678, would require that any property sold must have an Energy Audit at the cost of $400, this also establish a regulatory committee to monitor the point of sale audits and would also require a mandatory energy efficiency investment be made before escrow can close.

This will further hurt our already crippled real estate market. The Audit will cost California property owners $400, plus the cost of mandatory required energy compliance that may run into the thousands of dollars, and eventually get filtered down to the consumer, which would also add to the price of any property in California. Renters will feel the added expense in the form of possible rent increases. Consumer goods and services will also be affected in the form of high prices, adding to inflationary pressure.

I believe in energy conservation, and while the overall intent is good, we do need to get off oil dependency, and OPEC, however, this legislation was not well thought out, and puts a tremendous burden on ALL California property owners and tenants alike.

What we need is good old fashion common sense thinking, not special interest, self serving sacred cow politicians, that like to spend tax payer dollars to support expensive junkets. What this legislation really is, is a back door tax revenue raising source. Call it what it is.

You want more dollars into the state treasury, lower the Capital Gains tax to 5%, see how many people cash in on those rental properties that never get sold because of the Capital Gains Tax is too high to sell. This also would add tax dollars to the state's fragile economy, as the property tax revenues would increase on the sale. The Federal Government could also rake in hundreds of billions of dollars too. They just don't get it!

What California needs, as well as America, is not an overly regulatory bureaucracy, it needs pure down to earth leadership, for the good of the people, and all of the people, not just special interest. We've allowed Special Interest to dictate the lives we lead, such as, career politicians, oil companies, automakers, insurance companies, wall street financial CEO's that gave us the credit crunch, as well as the medical and prescription drug companies.

If California, and the rest of United States is going to survive this decade, we better start to re think our responsibility to the American public. Respect the little man who doesn't have a giant bankroll. I believe John F. Kennedy said it so eloquently, "Ask not what your Country can do for you, Ask what you can do for your Country. ... I believe what this meant was, respect your fellow man, give them a chance to dream, and do good, to build better things for the sake of doing for others, not to line your pockets. Contact your Ca;lifornia State Assemblyman today to vote against Assembly Bill AB 2678. Thank you. " This will be probably my last comment"

Our State Legislators need to be revitalized.

My name is Carlos Arvizu Sr.

Unemployed Realtor

I'm not running for Office, I can't afford it.

Panicking to a Confusing Market and Communications adding to the problem

2008-03-17T15:31:14Z

Comment and Perspective on the Real Estate Market

Carlos R. Arvizu Sr.

Contributing Writer

Communication and Panicking in the Market Place

Regardless what market your in, the stock market, real estate market or the Lending Market, sometimes we need to stop and rationalize what's going on.

The problem in this day in age, is that too much communication that causes confusion. Were bombarded with everyone's varying opinion Radio, T.V. Newspapers, Magazines and the Internet, you name it, it's no wonder why we have so many indecisive decisions clouding up our vision. Just this morning my wife had a panic attack about the money in her 401 k retirement fund. She is getting mixed signals from every directions, and is in a panic, and doesn't know what she should do.

On the lending side, I was talking to a prominent loan officer, she says that she had several people who heard that the interest rates were dropping (confusing the short term Fed. Funds rate with the 30 year fixed rate), in particular, several clients, wanted to wait for the rates to drop lower, instead of locking in a good rate, the rates went up considerately, and unfortunately several of these clients lost a good opportunity for lower payments.

On the real estate side, I don know how many people are setting on the fence to buy, waiting for that great deal, unfortunately, some of these people won't know when the real estate market has bottom out, until it's already past them going up again.

Warren Buffet, a Billionaire and one of the smartest business people, said this;

"Buy from Pessimist, and Sell to Optimist."

Which means, if opportunity presents it's self buy now, and profit from panicking people. Stay cool, don't panic. Now is a great time to buy real estate, and get a good loan.

Carlos R. Arvizu Sr.

Pronounced (R. V. Zoo)

Prudential California Realty/

The Mulhearn Group

562-755-3856

The GSE finally approves to raise conforming loan limits by the end of this week.

2008-02-27T11:42:34Z

This morning, the Director of the Federal Government Sponsored Enterprise, Jame B. Lockhard, finally agreed to allow FannieMae and FreddieMac to set the Conforming Loan Limits higher than the current $417,000. Unfortunately, it's taken 18 months of huges sacrafices for the real estate and mortgage industry to get to the brink of total disater.

Why it takes so long for these people to make a decision is beyond me. It's very frustrating for homeowners, who are trying to buy or refinance. History teaches us valuable lessons, I not sure if politicians, short term economist, and the news media ever stop to rationalize the long term affects on their opinions, that affect our daily lives.

Carlos Arvizu Sr.

Prudential California Realty

TheMulhearn Group

562-755-3856

UNDERSTANDING THE COMPLEXITY OF THE REAL ESTATE MARKET AND THE ECONOMY.

2008-02-18T20:22:27Z

How fragile is the real estate market in comparison to the rest of the world of economics, and what does it take to get us back on track to stabilility and eventually growth?

To answer that, we must understand how all the componets work.

The Federal Reserve System and the Secondary Market (FannieMae and FreddieMac) which is operated under the Government Sponsored Enterprise (GSE), these two entities have a direct influence on our economy.

The Federal Reserve Systems controls the money supply that influences banks who borrow from them and other banks, short term interest rates, such as adjustable rate mortgages, hybrid type loans. They also affect consumer loans, home equity lines of credit, construction loans, cars loans, and also has a direct influence on the prime rate charged to the banks best customers.

FannieMae and FreddieMac are operated under the Government Sponsored Enterprise, they're main objective is much like an overdraft protection to a checking account, as a way for the financial community to maintain liquidity in the mortgage market and maintain an equillarium to the credit market.

This system works well, as the need for mortgage money is forever assisting not only first time home buyers, also move up buyers, as well refinancing home owners, who also benefit from FannieMae and FreddieMac purchasing loans on the secondary mortgage market, this systems provide the flow of monies to the primary mortgage market that conform to their established conforming guidelines.

Under these guidelines, pools of loans are graded by the types of loans, interest rates, due dates, rate of return etc. These pools are a mixture of perfoming assets, as well as non performing assets. These pools are also known as Mortgage Back Securities. These MBS are often purchased by investors, who may want a certain rate of return on their money, such as a retirement fund, 401K's, etc., in many cases, these pools provide a safe rate of return.

When both these entities are allowed to operate in unison, the economy can maintain growth, keep inflation in check by controlling the money supply.

So what happened? Why are we faced with so many problem loans, and really, how bad is it? Why is the economy in such a mess, and cofidence very low?

Raising short term interest rates 17 consecutive times consecutive and waiting to see what was going to happen took a tremendus toll without counter balancing the fed funds rate could have soften the landing of home prices losing values.

A changing of the guard with the Federal Reserve Chairman Ben Bernake taking over, and delaying of taking action to restore order.

The last piece of the puzzle is a mechanical part of the process, by that, raising the conforming loan limits that allow the secondary mortgage market to provide liquidity in states that are considered high cost states, like California, and New York to name a couple.

As an example, When you make it difficult for home buyers to buy, whether they are first time buyers or not, refinancing or move up buyers, you restrict the flow of money, this is the life blood of the economy. Like turning off a faucet that flows water to the things that grow, without it, it can not grow, it dies. That's exactly what happened.

Look at what a slow down of the real estate market actually does, if a person can not sell, buy or refinance, this ulltimentally filteres down to national level, as well as a state level. look at states like California, who depend on property tax revenues for everything, schools, health, and other services. You can't run it efficently without the flow of money.

Subprime was just the source of the fuel, Monitary policy, in effect was the match that lit the fire. The Federal Reserve is now taking a pro active stance, Congress finalally understand part of the problem, by raising the Conforming Loan Limits, now it's up to the consumers to take advantage by looking at the opportunity that now exist.

Homebuyers have a short window of opportunity to buy now with attractive rates and lower home prices, it won't last long. This was a mechanical correction, that needed to be done 18 months ago, .... it's a SHORT TERM GIFT OF OPPORTUNITY TO BUY NOW.

Election Day

2008-02-05T02:10:16Z

Tomarrow, is the election day. This has been a long awaited time for Californians to finally have a real say in the decision who to elect someone in the party of their choice, whether you are Republican, Democrate or affliated with the other parties.

When Voting, distinquish hype and rederick to logic and reprocussion. Remember when their is an Action, there is a Reaction. Make it a productive day and week. Lets hope and pray we made the right choice.

Carlos Arvizu Sr.

TheDon1950@aol.com

Conforming Loan Limits stymied by Senate causes concern for Stimulus Package.

2008-01-26T22:42:36Z

According to the Chronicle Staff Writer James of the SFGATE.com GOP is flagging resistance to increasing the conforming Loan Limits that allow FannieMae, and FreddieMac to purchase loans above the $417,000 treshold.

Unfortunately, a handful of Senators that don't realize that a combination of events have literally killed economic growth for Calirornia and the nation and it will get worst unless they raise the conforming loan limits now. We don't have the luxury of time to wait. How many people have to lose their homes, jobs and any kind of stability before actions is taken to get the country moving forward.

What some government officials don't realize is that the laws they create or delay taking action on, ultimatly can and will affect us one way or another. Most politicians don't seem to realize that not everyone who has a mortgage is in trouble.

Take for an example, 70% of the mortgages made are not necessarily first time buyers, quite a few of thoses trying to get a mortgage are existing home owners, who are trading up to buy a larger home for their famiilies or baby boomers downsizing to move into much more manageable smaller homes, or they are trying to refinancing for some reason or another. (Send their kids to college, pay bills, investments, get a better rate to lower their monthly payments, etc.)

Only a small percentage of home buyers buy a home less than the conforming loan limits, especially in places like California, New York and Massacusettes to name a few, where the average medium home price far exceeds the Conforming Loan Limits. there are approximently 30% of the population are renters, on average only 6% of those renters convert to home ownership, the remaining 24% will never own a home unless they inheiret it, or win the lottery.

All of the mortgages made are not in default. Most lenders on average have a 3% to 5% delinquentcy rate that sometimes end up a foreclosure on a normal basis, due to many reasons, loss of employment, divorce, loss of a spouse's income , medical bills, death, job transfer, and yes, some loans that shouldn't have been made, but that's not totally the reasons why we are having financial calmity.

One of the reasons why we are in our financial mess is that the secondary market has not been allowed to relieve the pressure that many lenders are faced with today, liquidity.

Some lenders have assets that are performing as scheduled, and some have not done quite as well, and some that have assets being foreclosed on, which are non producing assets. When lenders don't have the ability to sell their loans (MBS) on the secondary good or bad, they are caught up in a situation, they can't sell, they can't loan, they can only borrow into more debt, like Countrywide did back in August 2008 from Bank of America, which ultimately is, was or could be the end of Countrywide, with Bank of America standing in the wings to pluck the remaining assets, consolidate and put more people out of work.

When the secondary market and the monitary policy act in unison, the flow of money keeps the money supply moving in the right direction.(Buying and Selling, like a revolving door)......

Just like the air in a balloon, if you don't relieve the air pressure that keeps building up in the balloon, eventually at some point it's going to pop. A lender who can't sell their loans on the secondary market, is force to somehow liquidate those assets, good and bad just to survive long enough, before the government officials gets off their (#?#$?) to do something. (That's why we are seeing so many lenders opting to do a short sale to salvage cash too keep them afloat).

The Secondary market is much like an overdraft protection to a consumer, when funds start to deplete to a certain level and a need for more capital to lend out is necessary, the Primary market (Lenders) will often Sell a block of loans called Mortgage Backed Securities (MBS) at a discount to FannieMae, and FreddieMac. These Mortgage Backed Securities are a combination of performing and non performing assets.

The Secondary market, which means FannieMae and FreddieMac Buys these MBS. These two institutions also Sells these MBS to investment pools on wall street. The secondary market acts much like a broker, they get paid for Buying and Selling. This sustem works well when the flow of money keeps revolving, that's also why the Federal Reserve System also has so much leverage on the flow of money with their two key interest rates the Federal Funds Rate and the Discount Rate.

The Biggest Problem occurred, and no one saw it coming, subprime loans, with an over zealous Wall Street, along with the Mortgage market credit crunch meltdown, couple that with the Federal Reserve raising short term interest rates (Federal Funds) for 17 long continuious months of increases of a .25% basis points.

The results, of these interest rate hikes, were slow in nature, starting in 2004, the real estate market continued to trive, 2005 was a banner year, the rate hikes continued, slowly chipping away as the rate of appreciation slowed to a crawl in 2006, asking prices of homes began to drop, as the demand began to dry up, consummer confidence withered with an over zelious news media, grabing as many headlines to gather media attention to ultimately sell their advertising message, like a feeding frenzie, this provoked many political leaders to jump on the bandwagon, without looking at the underlying problem.

As property values started to decline, we were on a direct collision course with the Home Equity Lines of Credit (HELOC). These 100% type financing had two loans, an 80% 1st Loan and a 20% 2nd loan, because of the 20% 2nd loan, there was no requirement to have mortage insurance. The other part of this equastion leading us into a fast moving freight train is that when the loan is scheduled for recasting or resets, that's when the deferred interest reaches a 115% of the original loan balance, the mortgage is reamortized at the remaining balance plus any deferred interest, and usually at an adjustable interest rate based on the most commonly volitle Libor Rate, and ooften at a substancially higher monthly payment.

This is a perscrition for disaster, not only for the 3% to 6% directly affected with this type of loans, the entire system is currently bottleneck. While those politicians are still trying to debate what to do, it a break down of the system. The breakdown is this, The Conforming Loan Limiits need to be raised that will allow the flow of money to circulate the way the system is set up to do.

With the conforming loan limits at current levels of $417,000, the people who want to buy, sell, move up, move down or refinance can't. Can't Can't Can't.

20 hours ago, the GOP have expressed opposition to the raising of the conforming loan limits. This is out right stupitity on our elected leaders, they are not clearly looking at all the damage that has been done or what further damages that rest with the outcome. The dollars, will drop like a bomb, it's already taken a beating against other currencies, this is sheer political bull, that makes no sense?

Any attempts by the federal reserve to have lowered interest rates will all have been in vein. I don't side whether you are a Democrat or Republican, which side or philosophy you have, We are all Americans, and deserve to have a government that's for it's people. A hand full of United States Senators, are keeping the Country from moving forward. Bankrupting the entire economy, doesn't make a lot of sense, doesn't it?

My name is Carlos R. Arvizu Sr

562-755-3856

Why do we wait for the economic problems to kill us?

2008-01-24T13:57:09Z

The problem of waiting, is one of the reasons why the real estate and mortgage industry is such a shambles. If you know what the problems are, take decisive action to fix the problem.

Unfortunately, too many people in government, analyst, politicians, (and news media included which exacerbate the problem and prolong the agony without rationalizing what are all the components of the problem.

There are too many people in the leadership position, that sometimes second guess, procrastinate or are opportunist for self purposes, until the problems are so out of control, that eventually everything's comes to a halt, making it worst for everyone.

Like in the case of the Federal Reserve, for an example, they always take a wait and see attitude, which is one of the components that was partially to blame for the credit crunch and why were in the mess today.

They increased the short term interest rates for a long 17 months, and waited for the reaction to be full blown, instead of adjusting interest rates that would soften the real estate market to a soft landing. What did they think was going to happen?

They waited well over a year and several months before they started to lower the interest rates.

It's like a car, ... if you know your brakes are in need of repairing, and find it difficult to come to a stop, you don't wait until you killed some innocent family, that happens to be in the way of your fast moving car. The momentum will finally catch up to you. Why does someone have to get hurt or killed, because your brakes failed?

The same thing is happening to the country. The other part of the equation is the lending industry is stymied because of the conforming loan limits are far below, the threshold of the medium home price. How many people have to lose their homes, how many people have to lose their jobs, how many lives do you destroy. I am at the point of running for office myself, but unfortunately, I don't have the financial backing or time.

The reality is self evident. Why do you think, we are having all of these problems with mortgages, home values dropping, people losing their jobs, recession and so forth. Not taking action, or relying on someone else to fix the problems we have.

Carlos Arvizu Sr.

TheDon1950@aol.com

Open Letter Regarding Stimulus Package and the effects

2008-01-22T21:45:30Z

The Honorable George W. Bush President of the United States

Dear Mr. President,

It's with respect for the office of the presidency, I write this letter. I believe, as well as many others who are in the same opinion, that the stimulus package you propose who a couple of days ago would put the nation in debt without any sizeable contribution to growth to keep us out of recession.

It makes no sense to put us in debt, without creating a real stimulus package to put people to work, and grow the economy.

We have far too much debt, that this may create pandemonium throughout the world's economies. In order for the United States on the growth mode is to provide real teeth in an economic stimulus package is to create real Jobs. To point out a few examples of this;

1. Americans are losing good paying jobs to foreign countries, as of such, why not put before congress a tax rebate or credit that rewards U.S. taxpayers for buying products that are made up at least 51% that are produced here in the United States.

2. Energy efficiency should be rewarded to taxpayers in the form of a credit or rebate as a stimulus to reduce our dependency on foreign oil.

3. Credit those automakers that Increase the Standards for fuel efficiency vehicles, increasing mileage per gallon, thus reducing fuel consumption, as well as tax credit or rebate those taxpayers who purchase energy efficient cars and trucks.

4. Credit energy companies for Research and develop crude oil and natural gas here in the United States as well as explore other fuel alternatives to shake us from foreign oil interest.

5. Increase the Conforming Loan Limits in states like California, which exceed the average median home prices that of states like Alaska, Hawaii, and the Virgin Islands. It makes no sense to why Mr. Lochard is refusing to acknowledge that California is a high cost state.

The conforming loan limit for FannieMae and FreddieMac is set at $417,000. California median price has been more than $500,000. Most of the lenders that have been affected by the so called credit crunch, subprime debacle really stems from actions by the Federal Reserve acting to slow in adjusting the fed funds rate, hanging out to dry many lending institutions, such as countrywide for example.

Now that the federal reserve has lowered the Fed Funds and Discount rate by .75 basis points, the only thing stopping the economy from moving foreword is the raising of the Conforming Loan Limits. This should get the country back on the positive track.

I am forwarding this letter to the Federal Reserve Chairman, as well a few Congressional leaders as well as a few key senators. I thank you in advance.

Very truly yours,

Carlos R. Arvizu Sr.

TheDon1950@aol.com

What's wrong with the our Policy makers?

2008-01-18T13:10:22Z

A State of Confusion. The Leadership of our Country is beyond confusion and comprehension.

What Fed. Chairmen Bernake said that the Country needs a stimulas to keep us out of recession, is true, However, the political leadership in office, and the wantabe'e are all opportunist without rationalizing the damage that they would be doing to the country if they gave a rebate to everyone.

Four or Five years ago, President Bush gave a credit of a few hundred dollars to everyone on the tax rolls, all it really did was push us into more debt. Rebates or credits should be a stimulus for Job Creation and Growth Opportunities for the country.

Look at the cost. Let's say a credit went out of $800. to 150,000,000, thats' 120,000,000,000. that does nothing but put us in debt. You want a stimulus do this:

1. Since we have an Automotive Manufaturing base in the United States that have Jobs tied to it, give a credit to the taxpayers who invest in buying cars that are made in the United States. Granted that there are foriegn companies already providing us with automobiles that are partially made here in the United States, any auto manufacture that has at least a minimum of 50% made in the USA, consumers of those vehicles would be entitled to receive a credit or a rebate. At least it provides Jobs here, instead of being outsourced.

2. Energy conservation is another form of producing Jobs and reducing our dependancy of foriegn oil. Create a credit that a taxpayer would be entitled to receive a tax credit for insallation of energy efficientcy within their homes. This helps the building trades create more Jobs.

3. Get real with the Corming Loan Limits that FannieMae and FreddieMac are authorized to purchase on the secondary market. In states like California, which is the third largest state in the country, which is and has always been a high cost state, over and above Hawaii, Alaska, and Guam.

The California economy is 20% of the nations income. When President Bush's appointee, James Lochard, who is the director incharge of the Federal Housing Enterprise Oversight Committee, refues to raise the conforming loan limits above the $417,000 treshold, he is leterally causing the United State and California in to bankruptcy.

The Conforming Loan Limits that FannieMae, and FreddieMac are allowed to buy on the secondary market helps the flow of money into circulation, which is why the Federal Reserve System can manuver it's two key interest rates to help keep us out of recession and keep inflation in check.

The system can not work efficently without the flow of money, the way it's intended to be, our entire Economy is affected and at risk from bankruptcy, from the builders, to the guy who cuts your hair at the local barber shop, people rethink their buying decisions, when consumer confidence is shaken.

When people can't make ends meet, and have to struggle just to survive, this is damaging to the country. People who are unemployed, don't produce. The very fabric of wealth of the United States economy is in our homes. Countrywide, and other lending institutions are having problems, because the money supply is dried up, and without a revolving flow of capital that the secondary market provides.

Carlos R. Arvizu Sr

562-755-3856

TheDon1950@aol.com

Why the Sky is not falling. It's correcting it self.

2007-12-20T15:23:11Z

Hi Dave D, in the San Gabriel Valley & my fellow active rain associates,

Wishing you all well for the holiday season and for a better 2008.

In responce to Dave D. of the San Gabriel Valley, that the Sky is falling and what to do?

I can not afford to take my house off the market at this time, however I will tell you what I am going to do, however, before I do that, I want to point out a few things, why were here, and the sky is not falling, just correcting itself.

For months I have been telling people, that the foreclosure problem is only part of the problem, and not as bad as some people think. I feel very good about that data I have been assembling to convince some of our law makers that it's not as bad as most people think and that it's more media hype than anything.

This morning I heard Rush Limbau addressing one of his radio callers that 94% of the mortgages made are doing O.K. with their mortgages and that only 5.9% or so, are having some form of difficulty.

Normally, in any market, there is a 3-5% degree of difficulty with the mortgages made, due to many factors, such as Death, Divorce, Illeness, Loss of Job, or transfer or a dozen or so S__t Happens. What it looks like, only 1% or 3% are facing the problem with the sub prime loan debackle. Not the sky is falling.

When the media picks up on something that will capitalize on headlines, and politicians are not to far behind to follow, that usually is enough to the stampied the cattle (people) into believing the sky is falling.

I have stated this so many times to anyone who would listen or read, and finally catching on to a few ears and eyes.

In August I had indicated that the feds needed to be pro active, they did in deed do that, they supplied cash into the market place by lowering the discount rate. That helped B of A loan money to Countrywide (2 billion)

I also stated the feds needed to lowed the fed funds rate, they did exactly that on Sept. 18th, 2007, not enough in my humble opinion, but they did, they also lower the fed funds again on October 31st, and December 11th. I also stated that the federal government needed to raise the Conforming Loan Limits, they helped to a small degree a few days by increasing the FHA loan limits to Fannie & Freddie limits, and currently working on making California a high cost state so that we may be able to see some light at the end of the table.

Unfortunately, these moves are slow to making it into the system. I do thing that the federal reserve is partially to blame, on being to slow to act, but at least it's a start. I also think, that the federal reserve needs to back out of mandating so tight of restrictions requiring lenders to have all full documented loans. There are many business people such as ourselves, that greatly depend on stated income programs.

The need really boils down to educate the borrowers and and make consequences for those who willfully offer loans that are preditors of greed.

I myself, believe that we need to elect law makers that rationalize the pproblems and offer real solutions and not hinder or stiffel the growth of the nation. All of this, really a drag on the economy, and preventing many homeowners to sell, and making it harder for people to buy.

I myself am caught between a rock and a hard place, I had to foreclose on someone who took advantage of my generiousity, that which I bailed out on 3 occassions, unfortunate, the friendship is gone and looks like the stigma of circumstance will be harder to sell.

What I am going to do is; I am going to carry back a note & deed on a second for $152,000, someone coming in, can bring in the difference to the conforming loan limits, should have an easier time getting a mortgage. Hopefully, that will be enough for me to sell. It's a nice house, in a great neighborhood, near the La Mirada Golf Course. I will let you know if i Sell it. I beats losing it to the banks.

Good Luck, God Bless, and make it a productive 2008.

Carlos R. Arvizu Sr. proonounced R.V. Zoo

562-755-3856

TheDon1950@aol.com

Rebuttle to News Article regarding foreclosure and the Housing Market

2007-12-19T11:39:37Z

Unfortunate as it may seem, the news media is distorting facts again, as with the case of a writer of an article (Alex Viega) from the Associated Press, which posted today from the Associated Press, as reported on AOL finance section. Partial Story: The U.S. had one foreclosure filing for every 617 households in November, RealtyTrac said....

( Rebuttal: does this mean, out of the entire housing market of the United States, approx. 200 million homeowners, that less than 3% are having financial difficulties, could it be that there may be other attributing factors, such as death, divorce, loss of Job or pure ill responsibility upon the borrower, Come on, give us a break)

The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages. Forty-three states saw an increase in foreclosure filings over last year.

The decline in filings from October to November likely corresponds with a lull in adjustable-rate mortgage resets, Sharga said.

Such loans typically have a low introductory interest rate, then reset sharply higher after a set period. The number of borrowers who took on adjustable-rate mortgages offering a teaser rate for just two or three years rose sharply in the last couple of years of the housing boom, particularly in high-priced states such as California.....

(Rebuttal: Recasting of Loans have been in existence for over 20 years. Yes, perhaps resets based on 115% may come into play, however, financial problems often occur long before recasting of the loan. Most defaults occur within the two years, due to many factors.

But many borrowers have been unable to afford the increased payments that come with the resets, and falling housing prices have made it harder to refinance or sell. ....

( Rebuttal; This is an ASSUMPTION, that borrowers are falling victims to Recasting of the loans only. Defaults occur for many reasons, death, divorce, and a host of many other problems.)

A flood of rate resets for such loans has helped drive up the number of home loan defaults in the last few months....

( Rebuttal; This is again an ASSUMPTION, that resets or Recasting of a loan is the problem, it's not)

"We'll see another fairly big spike in (foreclosure) filings in early '08," Sharga said. "Then there's another group of loans that's due to reset in May and June, so we'll see another wave of defaults probably in the fall.".....

( Rebuttal: This is an ASSUMPTION without knowing from the actual lending institution, how many of these type loans exist and if indeed that is the problem fro the foreclosure or it's simply late on their mortgage for the 100's of reasons, death, divorce, job, etc., etc.)

Experts estimate some 2 million adjustable-rate mortgages are due to reset at higher rates in the next seven months. ...

(Rebuttal: This is an ASSUMPTION, What actual Experts? Based on what information? How credible is that? )

Rebuttal;

What he (Alex Viega) doesn't say that in a normal market, there is typically 3 to 5% foreclosure filing. What it does say, using statistics and making personal assumptions based a personal opinion of a marketing company and not the actual lenders themselves and by twisting and distorting statistics, lead people to think the wrong conclusion, what's worst, the damage to the American public and the financial markets are darned near recklessness.

If you are going to report the news at least don't confuse the reader by not giving all the facts and data. Here is a question I have for the news media who reports this crap, Have you asked all of the lenders, how many of their loans that had recasting problems ( reset) due to sub prime loans and how many loans are in default as compared to the average over a 10 year history of each individual lending institution. Making a comparison over a month, or over a year is hardly accurate.

If my mind serves me correctly, let's examine what the actual numbers that are being reported for California as an example: We have 38 million people and 67% to 70% are home owners (approx. 25.5 million home owners and the foreclosure rate was 1 in 325 household, the numbers are a fabrication or a distortion of facts. Let's examine this;

If we have 1 out of 617 household in the foreclosure process, statistically speaking, out of 300 million people that live in the United States and out of the 200 million home owners, could that equate to less than 3%, is that way off? Is the nation in the dumpster?

According to the National Association of Realtors (NAR) we should be stabilizing in 2008. When a news organization borders on recklessness, I think it should be held accountable not only to it's readers, but should be criminally liable to the American public.

Carlos Arvizu Sr. pronounced R.V. Zoo

562-755-3856

Student of Real Estate Economics and Lending. Professional Real Estate Broker

Hedging your Retirement Income with real estate income property versus stocks.

2007-12-18T23:42:03Z

Hedging your Retirement Income

One of the Suresh ways to create wealth over time has been the stability in our rental income property.

Recently, my spouse found out that she would soon be retiring after 35 years. Her company, like many others in the private sector, has eliminated retirement pensions by providing 401k plans that the employee contribute to their own pension, taking part of the risk for the ups and downs of the stock market, and so forth.

Recently, she complained to me that she lost $45,000. in a matter of a few days on the roller coaster market. I take in stride, because it's her retirement income that she watches every day. I, on the other hand, look at my long term investments, such as a 4 unit apartment building I bought almost 3 years ago. I bought at the high end of the market, however, this was an investment over time, that has brought some sanity to my financial picture, unlike my spouses.

When I purchased this 4 unit apartment building, the rents were below market rents at $3,600 per month, and the property had some differed maintenance, which I remedied and the Cap Rate was sufficient for me to make this property produce money. After I made some repairs, installed a laundry facility, painted, and fixed the property, tenants were reasonably o.k. with me raising the rents.

Today, the rents are $4,800 per month for 2007, in 2008 rents will be increased to $5,052 per month, and projected over the next 5 years to be $6,203. per month with an average annual increases at

5%. ( Sorry if I offend those, who object, but I am the one who pays for taxes, maintenance, insurances and so forth, and I have to make a reasonable profit from my investment, that's what the American dream is all about.)

What a difference retirement income makes. I think, the time is right to buy another retirement income producing rental property. For more information, on how to hedge your own retirement income or send the kids to college, call Carlos Arvizu Sr. at 562 755-3856

Carlos R. Arvizu Sr.

Managing Partner

Prudential California Realty/ The Mulhearn Group

E Mail: TheDon1950@aol.com

Website: CarlosArvizu.com

Hedging your Retirement Income with real estate income property versus stocks.

2007-12-18T21:54:31Z

Hedging your Retirement Income

One of the Suresh ways to create wealth over time has been the stability in our rental income property.

Recently, my spouse found out that she would soon be retiring after 35 years. Her company, like many others in the private sector, has eliminated retirement pensions by providing 401k plans that the employee contribute to their own pension, taking part of the risk for the ups and downs of the stock market, and so forth.

Recently, she complained to me that she lost $45,000. in a matter of a few days on the roller coaster market. I take it in stride, because it's her retirement income that she watches every day. I, on the other hand, look at my long term investments, such as a 4 unit apartment building I bought almost 3 years ago. I bought at the high end of the market, however, this was an investment over time, that has brought some sanity to my own financial picture, unlike my spouses.

When I purchased this 4 unit apartment building, the rents were below market rents at $3,600 per month. The property had some differed maintenance, which I remedied and the Cap Rate was sufficient for me to make this property produce money. After I made some repairs, installed a laundry facility, painted, and fixed the property, the tenants were reasonably o.k. with me raising the rents.

Today, the rents are $4,800 per month for 2007, in 2008 rents will be increased to $5,052 per month, and projected over the next 5 years to be $6,203. per month with an average annual increases of 5%.

( Sorry if I offend those who object to my raising 5%, but I am the one who pays for taxes, maintenance, insurances and so forth, and I have to make a reasonable profit from my investment, that's what the American dream is all about.)

What a difference retirement income makes. I think, the time is right to buy another retirement income producing rental property.

For more information, on how to hedge your own retirement income or send the kids to college, call Carlos Arvizu Sr. at 562 755-3856

Carlos R. Arvizu Sr.

Managing Partner

Prudential California Realty/ The Mulhearn Group

E Mail: TheDon1950@aol.com

Website: CarlosArvizu.com

What Print ads in Magazines work?

2007-12-15T22:50:54Z

"The Real Estate Market Magazine", I think it deserves some food for thought. Don't give up on Print Magazines, you need to read this!!!

Most agents have not been in the business long enough to see trends in advertising, yet alone market trends, sellers market, buyers market, changing or correcting challenging markets.

Needless, to say, I have seen the days when we had the Multiple Listing Service (MLS) on books instead of what we had when Moses was a child. The Internet and was been a great source of information at you finger tips, no question about it.

Why do I think the Print media is here to stay along with the Internet. It's a good combination, most people are not on the web 24/7. They occassionally go to restaurants, coffee shops, shopping stores and malls, convienance stores, video stores Beauty shops, auto repair garages, barber shops, etc.

80% often pick up something to read. Anytime, the general public find themselves in a position waiting on service, they often, browse the reading materials just to kill idle time, 80% of those who look through a real estate magazine will not necessarily be interested, however 20% of the homebuying public, often are. Those prospective buyers, often find themselves calling the real estate professional, whose ad is of interest, they need more information to satisfy themselves, point of presence advertising that is inticing, and the need for further information is required to the now buyer. 20% will find themselves responding to an ad they saw in the real estate magazine that peaked their interest.

I franky am amazed at how many people think print advertising is a waist. I am probably going to catch a lot of slack on this, but I have been around almost 30 years, and yes the internet is here to stay, no doubt about it, thank God, however NAR, has indicated that 80 plus % look on line on their initial search for a home, that absolutly correct. However, what NAR also clearly points out, that only 6% of those who started their initial search on the internet actually received any real estate related business from the internet out of the entire 80% plus percent, that came on line to view properties.

How many agents will be in business, if they totally rely on the internet. It does work for a marginal few, who have built up a large data base, and a good knowledge of the bells & whistles, but there is a caveat to that, they also must be disciplined, have a great follow up system and they need to know how to close.

Using the 80/20 rule, which I feel is actually closer to 85/15. While 15% of the agents out there, are getting 85 % of the greater share of the business. While 85% of the real estate agents out there are starving on the 15 -20% left overs. There is a reason for this.

An honest overview of what has gone on over the years;

While the last few years, from about 2001 to 2005 the market was really hot, most of the real estate agents that came in to the business the last ten years, had a different perception of how much work there is in prospecting, and closing. Recent years of the Hot sellers market, spoiled many real estate agents, as well as many sellers that sold as FSBO's, they could put out a sign on the front lawn, and the property sold rather quickly. Because the web is so full of information and quick too, I think that help creating a fast moving market, along with low interest rates and a limited supply of homes and easier financing created by Wall Street sub prime market.

You could put a property on the MLS and the Web, you had a feeding frenzy of multiple offers, that drove the prices higher and furociously faster. You didn't need to know how to sell, just put a sign in the yard, or show a limited amount of inventory, and it was sold. Many agents thought they were in heaven, they convinced themselves the internet was the only way to go, without the realities of selling, marketing and relationship building. In a Hot Sellers market, demand out weighs supply, so information out weighs the need how to close and selling skills.

On a technical point, the internet is a great tool as far as information is concern, but the important factors remains, marketing properties and yourself, and closing (Asking for the Order) in combination of building a relationship sells more property, than the internet by it self.

The big difference is that when the market was blistering hot, you had multiple offers, with lots of buyers and few choices (information out weighed properties on the market,) etc.etc.

Now, when the Feds started to Raise The Fed Funds Rate in 2004, you still were in the notion that the internet, was Gods way of blessing you with prosperity. By 2006, when the aches and pains of the Feds interest rates hikes were felt, most agents, especially, Generation Y and X, got a taste of shock. Very intellegent and gifted with computer intellengence, somehow, are caught in a mistery.

Why is this happening? How am I doing so far?

Lots of agents are now scrambling around trying to cut cost everywhere, Real estate companies and lending instituions, and other related industries are finding it difficult to survive, so many feel compelled to cut cost, and you think,... ah, Print Media, don't need it, so you cut it, .....Right? .........Wrong!!!!

There are three or four inheirent problems, but before I summize, you need to know, I want all you to succeed, before I cash in my chips, my little legasy of immortality.

1. You don't amputate your leg, if you have a cut on it. If its deep renough, you can't put a bandaid on it, chances are you may need a few stiches to fix things.

What do I mean? Analyze the problem, find solutions, think out of the box, don't limit your thinking, otherwise, you'll find yourself among the 80-85% of the real estate agents trying to survive on 15-20% of the crumbs left over...

There is a reason why Cambell Soup, Procter and Gamble, Marlboro's, Pepsi, Budwiser, Toyota, Ford, GM, BMW, Kleenix, Mac Donalds, Burger King, Taco Bell and Coke still use print media, as well as many other advertisers. Exposure, Exposure and more Exposure.

The Internet is a great tool, but I repeat, it's a tool. It does not close, it does not build the relationship required. Big Advertisers use print media, magazines, newspapers to subliminally inplant their brand. If they thought, they could do without it, they would not spend Billions every year on Print Media. Out of Sight, Out of Mind. As agent's, we sell our image, buyers and sellers buy with emotions to make their decisions, they think logically with their emotions.

2. As far as the Print Media Advertising is concerned, don't give up on it yet. Some popular financially secured realtors are using many forms of advertising, that include Magazines, Newspapers, T.V., Bill Boards, Radio, and the internet. Understands that exposure is the name of the game. You got to get in front of your market. ...Expossure is everything that gives you an impression...... That you are the best person for the Job of selling a home or putting a buyer into a home, you have the experience, the knowledge and skills to negotiate.

Most Agents believe that the internet is the only way to go. I am not teckie, but I can tell you this, that's a complete falsehood. The Internet is a good tool for information.

Not every one is on the internet 100% of the time. They may start their search on the internet, according to NAR, approx. 80% or so, however, there is another statistic, you may not be aware of,.............Only 6% use the agent who's website they visited. 6%...6%...6%...6%...6%... Did you now see that means 6%, Not 80%, so don't get hung up on that.

3. You can have all these expensive website designs, and pay for each hit or you take it the Activerain way by blogging......Most of you are still struggling, Yes...Why?

4. I don't know how many people I know who are very active on the web, and blogging and so forth, But one thing for certain, Your business is not where it should be.... Why?

5. Here is what I believe to be a correct answer for all you very computer savvy smart people. Which most of you don't know;

A. Real Estate is Local. Not National, Not your entire State. It's your local marketing area. That's what you need to understand. Know your marketing area, How many homes on the market? How many Pendings are there? How many actual Closed? How long were they on the market? How many expired? Why did they expire, price is a major part on expireds, but so is showing, how many were by appointment only, a small window to view, nobody wants to buy without viewing. What kind of commission was being offered on a listing? Some agents won't show homes that are paying an inferior rate of compensation, which can also play a part, why very few showings and causing the listing to expire. Look at the expireds, I believe a valid point.

Study the history of property values over the last 30 years, Study the interest rates, Why did certain events change the course of property values? Make a viable conclusion, based on facts, not comparing your market on the short term basis, by comparing a blistering hot market, to a correcting market. Do the math, look at real numbers, not media hype. Ask yourselves, why the hype, they sell advertising, internet included!

B. How many properties are actually in the foreclosure Process in your area? How many actually short sales in your market area? How many actually lost their homes to foreclosure?

C. Know your stats, know your market.

D. Another problem with the internet, frankly, you give to much information away, there is no reason to call you, if they have all the answers. It's like going on a date , most people like to be romanced, find out what each other is all about.

As far as having the greatest website on earth, and trying to get your name out there, , people spend thousands of dollars to get hits, so that your website is the only one being hit, until somebody finally discovers your not. Accept that the internet is a great tool, but don't put all of your eggs in the same basket. Most people can't or won't remember you from Adam, so why do you think the web is the answer to your prayers, and that there is no other way to advertise.

Most people are not glued to the internet, every minute of the day, and perhaps some of you may get lucky,... It's a gamble, more often, your local market may not know you, and certainly will not recognize you if they saw you in a store or a shopping mall in your local market.

Image expossure is very important. To get through to the maze of the information hwy, you may have to take a few detours, it doesn't necessarily guaranty customers will find you, or want to use you. Don't forget you still have to contend with the other 100 milion people already cluttering the internet hwy, almost like any Los Angeles Freeway in California, it gets bottleneck with tons of other people all the time, at the same time.

Remember this, You need to build a relationship first and foremost. The Web, is great for information, but that is also part of the problem. The Web can't close. The Web can't build a relationship. It takes work to build a relationship. You need to get warm and fuzzy with folks, you need to understand their concerns, you need to understand who they are and who you are.

People communicate in many ways, NLP , Body Language, some people have different personalities, they hear, touch, and visualize. You got to get to them on a local level, that the solution to creating more business. See the People!

Why Real Estate Magazines are vital to your business, It gives you Exposure, when people buy homes, they themselves, want to think about it logically, without pressure, that's why they look on the internet because of information..... However, what they really want is some one to romance them, so that they can feel good about the decision to buy. They will sell themselves, but first they got to get to know you, your name, your face, on a constant basis.

TIPS for Advertising

Some simple tips; 80% of your competition will not do this, but 20% will, and will get 80% of the business out there!

Advertise yourself, and your properties, no more than (7) seven properties on a page, make sure you use a quality Photo of yourself, Smile, (people love smiles that are genuine) Make your name stand out, but not overly.

When you take a picture for advertising properties, for God sake, don't take it with all shadows, people like to see pretty, not gloomy, don't have cars or trash cans in the pictures.

Make a tag for yourself, when people see you, they think of your tag subliminally. Put your photo on the bottom Left, put your phone number on the bottom right. Why, people read top to bottom, from left to right, last thing you want them to remember to see what you look like, and to call you at the number to the right.

Leave a reason to call you, leave something out, make them call you. I sometimes left out the Price,....If the Price is so far below the competition price, The Leave it in, and make it a focal point, that it's obvious a Bargain.

Create the sizzle that will make the phone ring, leave something else of value to the caller to call. If its' a really nice property, let them imagine, they'll call.

Put a Bright Red Sold on a few of your listings, that have sold. (Remember this, curiousity killed the Cat....But Satisfaction brought it back!) They'll Call, especially if they see that you are very active (Pro Active) in getting your listings sold, yes, they really will call. Use this as a lead generator to capture more immediate business. The internet is an incubation of data base leads, that is sometimes 6 months to a year away from providing revenue, work them, but don't cut off the leads that pay dividens now, today, and yes, sometimes in the future.

One of my agents made this comment to me when I gave her this same information above to help her obtain more business, "They won't stop calling me"....

What's so bad about that, lots of opportunity to get business, provided you know how to close by asking for the business.

Carlos R. Arvizu Sr.

Pronounced R.V. Zoo

562-755-3856

TheDon1950@aol.com

http://www.carlosarvizu.com/

Prudential California Realty/The Mulhearn Group

Senate Votes to Help Strapped Homeowners

2007-12-14T17:14:21Z

TheDon1950@aol.com

Senate Votes to Help Strapped Homeowners

For the last 18 months, California has been had press to raise the Conforming loan limits for FannieMae & FreddieMac, as well as FHA.

Biggest part of the problems with the subprime debackle has been
in part a combination of several things that led to many of the problems in the financial markets;

1. Raising the federal funds rate 17 months consecutively by .25% without a counter measure to to soften the blow in the real estate and mortgage market. The Feds, have this wait and see attitude, which in this case, could have moved sooner.

2. Holding the Conforming loan limits to $417,000, without considering high cost states, such as California, whoose median price home is approx. $568,000. ..... What this did, was essentially killed many lending institutions. The secondary mortgage market provides liquidity, without the ability to sell motgages on the secondary market, the money supply dries up, forcing many lenders to have financial difficulties, regardless of the pools of loans performing and non performing, it's a drain of capital.

3. Educating the borrowers on the different types of mortgages and consequences.

4. The Media created a feeding frenzy, causing panic, not only here in the United States and abroad. Our political leaders also jumped on the bandwagon, putting a tremendius amount of pressure on the Dollar against other currencies. Everything is relivent.

Once the Loan Limits are raised, along with the actions the Federal Reserve made on Dec.11, lowering the fed funds rate, the Country can bounce back on it's feet. Consumer confidence will be restored.

Carlos R. Arvizu Sr.

Pronounced R.V. Zoo

562-755-3856
TheDon1950@aol.com

Why Print Media Complements Internet Websites?

2007-12-12T00:09:43Z

Why Real Estate Magazines are vital to your business, It gives you Exposure, when people buy homes, they themselves, think they think it's logical, this is their way of escaping in making a decision to buy.....Without pressure, that's why they look on the internet because of information.

However, what they really want is some one to guide them & romance them, so that they can feel good about their decision to buy. They will sell themselves, but first they got to get to know you, your name, your face, on a constant basis.

It Takes money, to make money. Look at all of the top advertisers, Coke a Cola, Budwiser, Kleenix, Pepsi, Marlboros (if you smoke), do you think they stopped in print media, on the contrary, they know it's Exposure, Exposure, Exposure... Just like Location, Location, Location. Get the Message yet!!!

Some simple Tips; 80% of you competition will not do this, but 20% will.

Advertise yourself, and your properties, no more than (7) seven properties on a page, make sure you use a quality Photo of yourself, Smile, (people love smiles that are genuine).

Make your name stand out, but not overly. When you take a picture for your advertising, for God sake, don't take it with all shadows, people like to see pretty, not gloomy.

Make a tag for yourself, when people see you, they'll think of your tag subliminally.

Put your photo on the bottom Left, put your phone number on the bottom right. Why, people read top to bottom, from left to right, last thing you want them to remember to see what you look like, and to call you at the number to the right.

Leave a reason to call you, leave out something, price, number of Bedrooms or Bathrooms, anything that ivites curiousity to make them call you..... I sometimes leave out the Price, or may have left the price in, if the price is so far below the competition price,most likely, I'd leave something else out, and sometimes, if its a really nice property, let them imagine, they'll call. (Remember this, curiousity killed the Cat....But Satisfaction brought it back!) They'll Call, yes, they really will. Use this as a lead generator to capture business.

One of my agents, made this comment to me when she left out something vital information, "They won't stop calling me"....

What's so bad about that, lots of opportunity to get business, provided you know how to close, and you ask for the business.

Carlos R. Arvizu Sr. Pronounced R.V. Zoo

562-755-3856

TheDon1950@aol.com

http://www.carlosarvizu.com/

Why Print Media Advertising, Better Read This for real Answers...Make your business improve, but you need to read!

2007-12-08T00:25:31Z

This was a Response to a Blog, that was too good to be true. You got to read this, if you want to increase your business!!!

I franky am amazed at how many people think print advertising is a waist. I am probably going to catch a lot of slack on this, but I have been around almost 30 years, how long do you think you'll be in business?

While the last few years, from about 2001 to 2005 the market was really hot, most of the real estate agents that came in to the business in the last ten years could put out a sign on the front lawn, and the property sold rather quickly.

You may have put it on the Web, and you thought you were in heaven, you convinced yourselves that the internet was the only way to go, that was a technical point, only because the internet provided information, and demand out weighed the supply, so the market was hot. Hot!!!!!

The big difference is that the market was blistering hot, multiple offers, etc.etc.

Now when the Feds started to Raise The Fed Funds Rate in 2004, you still were in the notion that the internet, was Gods way of blessing you with prosperiy. By 2006, when the aches and pains of the Feds interest rates hikes were felt, most agents, especially, Generation Y and X, because you are very smart and gifted with computer intellengence, somehow, are caught in a mistery.

Why is this happening? How am I doing so far? Startling, aren't I? Why?

Lots of agents are now scrambling around trying to cut cost everywhere, and you think, ah, print media, don't need it, so you cut it, .....Right?.........Wrong!!!!

Their are three or four inheirent problems, but before I summize, you need to know, I want all you to succeed, before I cash in my chips, my little legasy of immortality.

1. You don't amputate your leg, if you have a cut on it. If its deep, you can't put a bandade on it, so you may need stiches.

What do I mean? Analyze the problem, find solutions, think out of the box.

2. As far as Print Media Advertising is concerned, don't give up on it yet, and if you see Pat H., he's on T.V. Informercials. He understands that exposure is the name of the game, but Pat also knows, He has to ask for the Business, and he closes, but before you can do that, you got to get in front of your market. ...Expossure is everything that gives you an impression......

Most Agents believe that the internet is the only way to go. I am not techkie, but I can tell you this, thats a complete falsehood. The Internet is a good tool for information.

Not every one is on the internet 100% of the time. They may start their search on the internet, according to NAR, approx. 80% or so, however, there is another statistic, you may not be aware of,............. Only 6% use the agent who's website they visited. 6%...6%...6%...6%...6%... Did you now see that means 6%, Not 80%, so don't get hung up on that.

3. You may have all these expensive website designs, and pay for a hit or you take it the Activerain way by blogging......Most of you, are still struggling, yes...Why?

4. I don't know how many people I know who are very active on the web, and blogging and so forth. But one thing for certain, your business is not where it should be.... Why?

5. Here is what I believe to be a correct answer for all you very computer savvy smart people. Which most of you don't know;

A. Real Estate is Local. Not National, or Not your entire State. It's your local marketing area. That's what you need to understand. Know your marketing area, How many homes on the market? How many Pendings are there? How many actual Closed? How long were they on the market? What kind of commission was being offered? How many expired? How many were by appointment only?

Study the history of property values over the last 30 years, Study the interest rates, Why did certain events change the course of property values? Make a viable conclusion, based on facts, not comparing your market on the short term based as to compare blistering hot market, to a correcting market. Do the math, look at real numbers, not media hype.

B. How many properties are actually in the foreclosure Process? How many actually short sales in your market area? How many actually lost their homes to foreclosure?

C. Know your stats, know your market.

D. Another problem with the internet, frankly, you give to much information away, there is no reason to call you, if they have all the answers. It's like going on a date , most people like to be romanced, find out what each other is all about.

As far as having the greatest website on earth to get your name out there, that you'll be the one they'll use for business. Think again. Most people can't or won't remember you from Adam, so why do you think the web is the answer to your prayers, and that there is no other way to advertise.

Most people are not glued to the internet, every minute of the day, and perhaps someone may and I say may very likely, they may get to your website, but that doesn't guaranty they will want to use you, don't forget the other 100 milion people already cluttering the internet hwy, like a Los Angeles California Freeway, it gets bottleneck with tons of other people at the same time.

You need to build a relationship first and foremost. The Web, is great for information, but that is also part of the problem. The Web can't close. The Web can't build a relationship. It takes work to build a relationship. You need to get warm and fuzzy with folks, you need to understand their concerns, you need to understand who they are and who you are.

People communicate in many ways, NLP , Body Language, some people have different personalities, they hear, touch, and visualize. You got to get to them on a local level, that the solution to creating more business.

However, what they really want is some one to romance them, so that they can feel good about the decision, they will sell themselves, but first they got to get to know you, your name, your face, on a constant basis.

6. It Takes money, to make money. Look at all of the top advertisers, Coke a Cola, Budwiser, Kleenix, Pepsi, Marlboros (if you smoke), do you think they stopped in print media, on the contrary, they know it's Exposure, Exposure, Exposure... Just like Location, Location, Location. Get the Message yet!!!

Some simple Tips; 80% of you competition will not do this, but 20% will.

Advertise yourself, and your properties, no more than (7) seven properties on a page, make sure you use a quality Photo of yourself, Smile, (people love smiles that are genuine) Make your name stand out, but not overly. When you take a picture for your advertising, for God sake, don't take it with all shadows, people like to see pretty, not gloomy. Make a tag for yourself, when people see you, they think of your tag subliminally. Put your photo on the bottom Left, put your phone number on the bottom right. Why, people read top to bottom, from left to right, last thing you want them to remember to see what you look like, and to call you at the number to the right. Leave a reason to call you, leave out something, to make them call you. I sometimes left out the Price, or may have left the price if it's so far below the competition price, I'd leave something else out, and sometimes, if its a really nice property, let them imagine, they'll call. (Remember this, curiousity killed the Cat....But Satisfaction brought it back!) They'll Call, yes, they really will. Use this as a lead generator to capture business.

One of my agents, made this comment to me when I gave her this same information, "They won't stop calling me"....

What's so bad about that, lots of opportunity to get business, provided you know how to close, and you ask for the business.

Carlos R. Arvizu Sr. Pronounced R.V. Zoo

562-755-3856

TheDon1950@aol.com

http://www.carlosarvizu.com/

Prudential California Realty/The Mulhearn Group

Author of; How to Sell Real Estate for Rookies (and Non Rookies too), in the process of being Published soon.

Author of many news articles.

Book 2 on the Way.

Founder and Publisher of "The Real Estate Market Magazine" TREMM for short, go to http://www.tremm.com/

P.S. Soon to be franchised, perhaps in your area. For any Southern California Real Estate Professions, in particular, from Long Beach to Whittier, from the City of Los Angeles to Rancho Palos Verdes to Downey and surrounding Communities who would like to advertise, call Luis at 800-719-1026. Good Luck, God Bless, and make it a productive week, and make it the best 2008 with tons of business.

Thanks Carlos

Loan Limits for High Cost States

2007-12-06T16:08:48Z

California is the 3rd highest cost state in the nation. Survival depends greatly on raising the Conforming Loan Limits.

The Federal Reserve should lower the Fed. Funds Rate, however, there is another part of the equation, that many people are not aware of outside of certain circles, Why are so many lenders in trouble?

The sub prime problem may have added a small minute portion to help fuel the fire, but in reality, the federal reserve deserves a good share of the credit of killing the confidence of the American Public. The Federal Reserve is the direct link to the credit crunch, it has in it's power, and the will to increase the money supply and controls inflation, the Discount Rate and the Federal Funds Rate.

In 2004, the Federal Reserve started their quest to slow down the real estate market, which was on fire, the results of raising the federal funds rate from 2004 to 2006, for a streight 17 months consecutively, without a counter balance to cushion the effects of these short term interest rate hikes, ultimately affected the Prime Rate, Consumer Loans, Home Equity Lines of Credit. This had a direct influence on the sub prime market, such as 100% financing. These short term interest flutuations that were directly influenced by raising the fed. funds rate.

Why they waited over a year to counter balance (lower the fed funds rate) to bring the economy to a soft landing, is of concerned...

By waiting, to do something, caused the many of the problems were in, with the real estate market taking a beating, the mortgage market, along with everything eles in between, including the stock, bonds markets, as well as many other global concerns, they too are also feeling the pinch.

The other missing link, that is of major concern that ties all these things together, has further complicated the problem, especially here in California, the conforming loan limits set by the Senate Office of Federal Housing Enterprise Oversight Committee, this is a body controlled by the United States Senate, is yet another part of the attributing factors to this credit crunch, by way of controling the Conforming Loan Limits that FannieMae and FreddieMac can purchase loans on the secondary market.

The sub prime problem has caused a few more grey hairs to many lenders, but by far has been blown out of proportion, and that is the many lenders generally sell off their mortgage back securities to FannieMae and FreddieMac on the secondary mortgage market.

One of the reasons for this, it moves money into the system, by selling their loans on to the secondary market, many of these lenders have cash to make more loans, without this secondary market system, many of these lender's funds would dry up, and anyone holding on to loans that are not performing as well as others, would surely be a drain of their financial stability.

If you have no more money coming in, and more of your capital being paid out, that leads to insolvancy, that's why the conforming loan limits need to be raised to allow liquidty to flow into the system.

This sounds so technical, but it's like a checking account that has no money in it, at some point it's going to bounce, the federal reserve controls the flow by controling the supply of money, the federal government also has control of the secondary market.

By authorizing the Federal Housing Oversight Committee to raise the Conforming Loan Limits, this allows FannieMae and FreddieMac to buy these loans, much like an Overdraft protection is to a Checking Account, in simple terms.

The primary lender can now sell their performing assets (Mortgage Back Securities,aka MBS) to use to build liquidity, and when they can't do that, many of these lenders can not stay afloat for to long, if they have loans that are not performing as well.

A bad loan is a drain of resource, but it's worst, if you don't have money coming in, you can't stay in business for too long if you are holding on to several loans which have defauted and don't have the financial resources coming in.

So to solve this dilenma called the credit crunch, it does not take a rocket scientist to figure it out. To gain the confidence of of many consumers sitting on the fence an adjustment in interest needs to take place, along with raising the conforming loan limits for areas such as California. It's imperative!

Many lenders are facing financial quos, This mainly rest in the hands of the United States Senate "Office of the Federal Housing Enterprise Oversight Committee" The Key to solving the problem is by rasing the Conforming Loan, which they have control of.

I am frankly quite upset, and surprised by the actions of the Office of Federal Housing Enterprise Oversight Committee, by not moving forward to help California raise the Conforming Loan Limits where they should be, since California is a difinately a High Cost State with the median price at $568,000.

Many real estate, and mortgage professionals as well as many other related and in directly related fields are also affected by such in actions. How can a political appointee determine the fate of the 5th largest economy in the entire United States, which is California, and not recognize the damage being done to the economy. Currently $417,000, is the Conforming Loan Limit that FannieMae and FreddieMac will purchase on the secondary market, this is un realistic, considering our average median home price is $568,000.

If this political appointtee can't recognize that California is the third (3rd) largest high cost state in the entire United States compared to Alaska which is 7th and Hawaaii who is the 39th largest high cost state, than I think and it's time to put this in the hands of the congressional leaders to eliminate this position of the Office of Federal Housing Enterprise Oversight Committee.

Many Senators and Congressional representatives perhaps don't quite understand the full impact by the actions or in actions, of a political appointee, James B. Lockhart III to govern a department that is suppost to promote housing and make sure we have a strong national housing finance system. The Office is headed by a Director appointed by the President for a five-year term and James B. Lockhart III, was nominated by President George W. Bush to become the Director of OFHEO, and was confirmed by the U.S. Senate on June 15, 2006.

Mr. Lockhart, I am sure a very analytical in his reasoning, and does not realize the entire complexity of the loan limits have in relationship to the primary mortgage market, and may preceive that the Conforming loan limits affects only first time buyers, but in reality, it affects all homeowners, one way or another.

Many homes are beyond the $417,000 conforming loan limits threshold in California, The Office of Federal Housing Enterprise Oversight (OFHEO) and all those special sub committees, don't realize that over 70% of all home purchases were already existing homeowners, who incidently, moved to up grade or they were down sizing to more in line to their life style changes.

On Nov. 29, 2007-The cost of financing a home remains out of reach for many households in California in the wake of the Office of Federal Housing Enterprise Oversight (OFHEO) conforming loan limits for 2008, as announced on November 29th, 2007, according to California Association of Realtors®.

The maximum 2008 conforming loan limit for single-family mortgages will remain at $417,000, which has not changed since 2006, yet the median price of a home in California is more than 2.5 times the entire Uinted States median of $221,000. Currently, California Median Price Home is $568,000, yet California is not recognized by OFHEO as a ‘high-cost' state.

The conforming loan limit determines the maximum size of a mortgage that Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.

California still has the third highest home price in the entire nation, compared with Hawaii at seventh, and Alaska, which ranks 39th in terms of median home price. Yet Alaska, Hawaii, Guam and the U.S. Virgin Islands are recognized by OFHEO as ‘high-cost' areas.

With a 20 percent down payment, the highest-priced home one can buy with a conforming loan in California is $521,250, $44,750 below the third quarter median price of $568,130,

Fifty-five (55%) percent of all home sales in California exceeded the $521,250 threshold in the third quarter. With a 10% down payment, even fewer buyers can qualify for a conforming loan. Now is the time for the U.S. Senate to pass legislation allowing regional adjustments to Fannie Mae and Freddie Mac loan limits and to modernize FHA loan programs.

This critical legislation is a key step to allowing families in California an opportunity to move on with their lives. Believe it or not, Californians are being held hostage, putting a strain on all Californians.

What do you think?
I am Carlos R. Arvizu Sr.
Pronounced R.V. Zoo
TheDon1950@aol.com
WWW.CarlosArvizu.com