Surf To Street, The Land Is Yours

A Surfer's Dream

Naming the Right Price $$$

In real estate these days it really takes a good price and a unique property for a sale to procure quickly. This property was on the market and open to the public for 1 day. At the moment there are 4 offers on the table and 3 on the way.

The lesson learned here is that pricing something slightly under market, even in an economy where it seems like the sky is falling, will result in activity and competition. Agents and their clients flocked to this house like vultures last Sunday. I have never had an open house with that many people coming in and out. It was like a college party without the booze.

One thing is for sure...the beneficiary of this estate will be walking away with a smile like that of a Cheshire cat

See Saw...Dow Jones Down 500... Up 400...

My last post several days ago focused on the Dow Jones Industrial dropping 500+ points. Today, the Dow climbed 400 points on reports that the governments MIGHT create an entity to absorb banks' bad debts.

There is so much volatility these days that analysts are attributing to the nervousness of investors. Nervousness isn't the only word I would use...Confused, shocked, or freaked out would be other terms I would use to describe the current economic situation.

The Chicago Board Options Exchange has a volatility index known as VIX, which set a new high for this year in trading. This index is referred to as the "fear index," and today it reached levels not seen since 2002.

The bottom line is that investors are looking for safe haven's to park their money as opposed to playing stocks with the risks they currently present. For instance, on Wednesday the demand for a short term 3 month Treasury Bill was so great that the yield actually dipped into negative territory for the first time since 1940. That means that investors are willing to take very little if any return in exchange for parking their money in a safe place.

As a real estate agent, I am urging many of my clients to consider pulling some of their money out of the stock market and investing in multi-unit income property. With rent prices only on the rise here near the beach in Los Angeles, now may not be a bad time to diversify the portfolio by negotiating a good deal on a 2-4 unit property.

We will see what happens during tomorrow's session....One thing is for sure....We are all watching intently.

WOW

Was today one of those days that I will reflect upon 50 years from now? It certainly feels like it. All day I have heard and read about the stock market and the volatility of the economy. The Dow Jones plummeted 500 points today, the worst turn out since the days following the 911 attacks on the Twin Towers in New York City.

What's next?

Professional Coutesy & Real Estate

I had an experience while showing property this past weekend that made me as upset as this Tiger that I am featuring above. We agents have to go through several steps in order to arrange showings of various properties to our clients. This takes numerous phone calls, scheduling and juggling in order to make things run smoothly. Personally, when I am out showing property to clients, I want everything to go according to the game plan that I lay out during my preparation.

Last Saturday, I made arrangements to show clients of mine 5 properties in Palos Verdes Estates, ranging from $2.5-3.7 million in price. All but one of the listings were appointment only, meaning that I as an agent would need to make arrangements in advance with the listing agents.

Turns out, that one agent had all of the listings that I wanted to show. This agent is so successful, that he has 5 assistants that handle showing property as well as setting appointments. This same agent actually has several of Donald Trump's properties listed in the area near the golf course.

Long story short, the assistant that I was referred to failed to make the appointments. He said that he would be meeting us at 3:30 in the afternoon. When 3:30 rolled around, he was no where to be found. I began to phone him, and everything went straight to voice mail. Then at 3:45, he sends me a text message saying that he won't be making it and that he had an emergency...Meanwhile, I have clients who are very serious about buying, standing in the driveway of one of the houses that I wanted them to view. How embarrassed to you think I am at this point?

Rather than getting discouraged, I take the initiative and knock on the door of this home as well as the other which this young assistant was supposed to set up for my clients and I. Needless to say, the homeowners weren't jumping up and down about the fact that 6 people are standing in their driveway with no appointment made. I asked each homeowner whether this assistant had phoned them to alert them that we would be coming by on this date and time. Both owners said that the young man NEVER called.

Not only did this guy not make the appointments, but he lied about having a family emergency. There was no emergency...He FORGOT! How do you think Mr. Trump would feel if I told him that his listing agent's assistant dropped the ball on making an appointment and consequently I wasn't able to get my client in to see the house. I'll tell you what he would say...

"You're FIRED!"

Sometimes going with the real estate agent that has ALL of the listings in the area can backfire. This listing agent has so much business, that he is trusting his untrustworthy assistant to get things done. On top of dropping the ball, the guy didn't even own up to it.

Thank goodness I can tapdance and think quick on my feet.

Some Real Estate Executives are Diversifying : )

Hersch Klaff of Klaff Realty is making a bid for the rights to the Chicago Cubs. With all of the negative press that real estate has gotten in recent months, I am taking this bit of news as a breath of fresh air.

Klaff Realty is known for acquiring distressed retail / office space. Obviously, Mr. Klaff sees value in the Chicago Cubs, who haven't won the World Series since 1908. Although I am sure that Hersch is a sports fan, I think that he also sees value in this franchise. With bids expected to exceed $1 billion, it's apparent that each one of these investors wishes to be the one to bring a World Series Championship back to the Chicago Cubs who haven't won it all for 99 years.

9 other parties also see value in this opportunity and are competing with Mr. Klaff, so at this point the auction has just begun. According to reports, the Chicago Tribune, who currently own the rights to the team, will not finalize the deal until the conclusion of the 2008 season. Their goal is to have the deal close by the end of the calendar year, or the first part of 2009.

Only 5 of the 10 parties that are currently bidding will be honored to make it to the next round. Something tells me that Mr. Klaff is going to move forward. With Klaff Realty stationed in Chicago, I am sure that he is considering his investment group to be one of the front runners. His business is rehabilitating distressed properties and making them profitable. Not to say that the Chicago Cubs are a distressed organization, but the Tribune Company is restructuring it's portfolio and has decided to unload the historic organization.

What a chance to both make some money and get a little fame. If there are 10 groups in the running for the chance to take over the reigns, the juice must be worth the squeeze. If I had the money, I would be number 11...

GO FIGURE

This logo will no longer be used. The bank formerly know as Indymac bank will now be called Indymac federal bank. What do you know...this coming days after Indymac laid off 2400 employees. This is the latest in collapses due to questionable lending practices during the most recent real estate boom. When is the downward spiral going to stop?

Nobody knows for sure, but right now Americans need to strap in and brace for the financial storm. Things are getting hairy and they are only going to get hairier in the coming months.