LAS VEGAS INVESTING

The Year of the Dragon- How does it relate to your business?

2012-01-30T12:39:00.000-08:00

The Year of the Dragon is upon us. In my years of martial arts as a kid the dragon was my favorite symbol of power and mysticism. Little did I know there was so much to this mythical creature. Today's blog credits go to Roger James Hamilton of Wealth Dynamics. You can connect with him on Twitter by clicking here .

Whether you follow the Chinese Zodiac or not, here are 5 things about dragons worth knowing in 2012:

1. Dreams to Reality: The dragon is the ONLY mythical animal on the chinese zodiac. It is the link between the imaginary world and the real world and has a special place in Chinese culture (In the same way you cannot deface a US flag in America, you cannot deface a dragon image in China). In 2012, what is the one dream you will bring into reality? Pin it up with a dragon image (on your vision board).

2. The Symbol of Flow: The dragon symbolises the protector of flow, and in Chinese myths is always controlling the waters, floods, seas and rivers. Its three joints represent the trinity of flow (creation, preservation, destruction). In 2012, what will you begin, what will you preserve, and what will you end to stay in flow?

3. The Power of Nine: The dragon is related to the number 9, the highest single digit number and Chinese symbol of celestial power. The chinese dragon has 81 Yang scales (9x9) and 36 Yin scales (9x4). Nine dragons was the symbol of the Chinese Emperor (and if you have ever been to Hong Kong, ‘Kowloon’ means ‘nine dragons’ in Chinese). The chinese character for ‘nine’ is the same as the word ‘forever’. In 2012, what part of you will you develop - a skill or quality that will lift you higher, and be with you forever?

4. The Celestial Messenger: The dragon has spread through all cultures, and today are found in everything from Shrek to Harry Potter. The English word comes from the Greek ‘‘drakan” which means ‘water dragon’, derived from ‘drakein’ which means ‘to see more clearly’. Up to modern time, the dragon is seen as carrying a secret or message that it protects and passes to the select few. In 2012, what dragon will you seek out. In what area do you want to ‘see more clearly’?

5. A Sign of the Times: 2012 is the year of the Water Dragon, which only comes around every 60 years. The last Water Dragon year was 1952 (the first year to see a return-flight of a passenger plane across the Atlantic), and before that was 1892 (The year Edison got a patent for a two-way telegraph. It was also the year of the first basketball game). In 2012, what will you invent? What will you create that will leave a legacy?

Where to start with these five questions? Grab a blank sheet and start with that - A white space of unexplored, virgin territory: The kind that old map makers would leave blank on their maps because no one had been there yet; The spaces on the map where there were no coastlines or land masses; Just empty space with the words “Here be dragons.”

Dare to discover what lies outside your comfort zone.

Breaking News- HAMP program modifications announced

2012-01-27T13:46:00.000-08:00

Read the article below from DS News who pulled its data from Tim Massad, assistant secretary for financial stability.

Looks like the program is extended through December 2013, they're considering pushing for principal reductions harder with bigger incentives (triple the original amount, but probably not nearly enough), and opening the doors to INVESTOR OWNED HOMES used for rentals. Read the article from DS News.

DS News reports:

The Obama administration has announced changes to its flagship foreclosure prevention initiative – the Home Affordable Modification Program (HAMP) – which officials say will expand its reach to more distressed homeowners.

Among the changes, borrowers who are struggling because of debt beyond their mortgage will be eligible for a secondary evaluation with more flexible debt-to-income criteria, and eligibility will be extended to investor-owned homes that are used as rental properties.

The administration is also giving principal reductions a bigger role within the program, tripling incentives for investors that agree to write down an underwater borrower’s principal and offering these same incentives to the nation’s two biggest mortgage investors – Fannie Mae and Freddie Mac.

The deadline for HAMP will be extended for an additional year through December 31, 2013.

(developing story)

*Additional details have been provided in a blog post by Tim Massad, assistant secretary for financial stability.

Are you crawling, walking or running to your goals?

2012-01-12T12:28:00.000-08:00

When you were a baby you would look around at the adults and big kids and say to yourself, "I'm going to walk like they do." Little by little you start on the way to your goal. You learn how to roll over, then sit, then stand up with help and then you fall. Think about how huge this goal is in your young life. You fall on your face, you fall on your rear end, you fall all over the place, but you get picked up and off you go. Do you or your parents say, "Geez that looks painful, how many times should we let her fall before we make her stop or tell her to quit..."? Nope, they might put cushions around you so the fall isn't painful but they don't tell you to stop. They don't say, "It's unreasonable that you want to walk," even though you've only known sitting and laying down for all of your young life. Finally you achieve success, you can walk, and you get great at it. You're so good at it that you would now like to run and jump and skip and hop on one leg and go backwards and do the limbo, remember?? Okay so how does this relate to your current situation?

The only roadblocks to your success have been things that other people have said which you've internalized. Your limits are your own. Your parents may have thought they were protecting you by saying, "That's not safe, you'll get hurt." or "You really can't do that." Their intentions, I'm sure, were to protect you from pain. Whether it's physical pain or the pain of failure or the pain of losing, either way I'm confident that those limiting beliefs that you have are your own. Now that you know this, it is up to you to figure out what they are and remove them from your life. This isn't easy, nope, it'll hurt just like the time you fell down and bumped your head. It'll be painful, you might cry, you might feel all those feelings that are there, but now is the time to start running and skipping and hopping on one leg again. That is called momentum and it'll carry you and your family swiftly into a future that is unbounded. Playing it safe, with all those cushions around you, will protect you from the unknown, the scary stuff like stairs. If you stand up, kick those cushions out of the way and start running towards those stairs, you'll be surprised and amazed at what's around the corner. Your own two feet can take you there. Start today.

What's In Store for 2012... Who Cares?

2012-01-03T13:11:00.000-08:00

I'm not trying to be abrasive by the response but honestly has anyone had a premonition in December that instantly came true in the 1st quarter of the new year? So do you sit around and wait for your favorite guesser's declaration of triumph? How about this novel concept... You create what you want for yourself and your family regardless of what the politicians are doing or the economy or the weather or oil prices or gold prices or revolutions in other countries or or or ...

While we sit around and wait for unemployment to get better, our schools are suffering and our kids are getting "left behind." While we sit around and complain about gas prices being too high we lose our vehicles and have to ride the bus. While we sit around and watch gold go up and down like a yo-yo we stop working and stop focusing on what's really important. You know what makes the worry go away? Taking action.

I can't speak for you and your dreams, but I'm not waiting for anyone else to tell me when to pull the trigger on anything that I want to accomplish. I don't want my son or daughter to think they can't have a remarkable life because of some random situation that's completely out of their control. Do I wish things were easier, sure I do. Will I wait for that possibility, never. The ride is bumpy and the road is hard to see sometimes, but I know what the end looks like and I have enough momentum to get me to the final destination.

My advice to you in 2012 is to ignore all the crap on TV, avoid the straw polls and political debates, pay no mind to the nay sayers out there, stop worrying and start doing. Not only is it exciting to be living in that dream mode where you are so confident that you can be, do and have anything you want, but it's also fun being around people like that and you will find others will gravitate towards you (including your kids). Enjoy that and live in abundance mentally and financially.

THE NET & THE GARDEN

2011-11-29T12:03:00.001-08:00

Today I want to share a message from Roger James Hamilton of Wealth Dynamics. There's two ways to acquire the elusive riches you desire. Here's a great story to help with getting your mindset in place with this important pursuit.

How is the end of 2011 shaping up for you? Are you chasing money with a net, or growing an attractive garden? If you watch the world news, you’ll know the world is in crisis, with money eluding everyone from the record unemployed to European nations. On the other hand, online shopping over the Thanksgiving holiday has hit new records...

Wealth is permanent, like a garden, while money is temporary, like butterflies. Using the analogy of money being as tricky and transient as butterflies is quite useful. It allows us to draw a clear distinction between the strategies of those who are busy trying to make money compared to those who are building wealth.

The NET ...

You want to catch butterflies, so you decide to build a net. Surely, with a net you can catch them more easily! You read books on the subject and you practice skills in butterfly catching. You find that you are making improvements. Your net gets bigger and smarter and gradually you do catch more butterflies, but there is something wrong.

After many years of this strategy you still need to wake up every day and go out to catch more butterflies. You need to hold on to the butterflies you have caught or they will fly away just as quickly. The more butterflies you have, the more difficult they are to hold on to. You are constantly in fear that the butterflies will disappear or that someone with a bigger net will beat you at your own game.

When the butterflies disappear, you’re left with nothing.

Many people have become experts at sales, marketing, management and customer service. Yet they still struggle to make money. We all know of people who have learnt the strategies of successful stock market traders, property investors and serial entrepreneurs yet are still left funding their losses. They carefully follow the strategies they learn and then remain baffled as to why they do not attract the same opportunities, resources and sheer luck as their role models. They are trying to make money without first building wealth.

They are trying to chase butterflies with a net.

The GARDEN ...

Successful Wealth Creators don’t worry about building a net. They grow a garden. By focusing on creating an inspiring garden, you are growing something permanent around you. As the garden grows, the butterflies come. As time goes by, the effort required to manage the garden falls as the number of butterflies rises. In fact, the butterflies, birds and bees end up pollinating your garden for you. You don’t fear butterflies leaving, as there are always more coming.

If anyone takes your butterflies, there will be more the next day.

Every successful Wealth Creator is focused entirely on building their wealth foundation rather than their moneymaking activities. They build a reputation, a powerful network, a knowledge base, a resource base and a track record. This is their garden, and it is built not around their expertise, but around their passion, their path and their purpose. Every day, they wake up to their garden, not to an empty net.

In a recent speech to a group of students, Warren Buffett said:

“I may have more money than you, but money doesn’t make the difference. If there is any difference between you and me, it may simply be that I get up and have a chance to do what I love to do, every day. If you learn anything from me, this is the best advice I can give you.”

Does the garden metaphor resonate with you? Are you busy chasing butterflies with a net or are you growing a garden?

Obama's Refi Plan Update

2011-11-15T17:11:00.001-08:00

Breaking News - Obama's Refi Plan Update

November 15^th is when more details were to be available related to Obama's Refi announcement a couple of weeks back.

The most important piece of information we have received so far is:

All loan applications for the Refinance Program must be dated After 12/1/2011.

Over the next couple of weeks, everyone needs to check the Fannie Mae and Freddie Mac websites to see if their loan(s) are owned by either Fannie Mae or Freddie Mac.

If they are not, they do not qualify for this program. FHA loans do not qualify. These are the links to Fannie Mae and Freddie Mac in case you need them

http://www.fanniemae.com/loanlookup/ or http://www.freddiemac.com/corporate/

If you are on either website and want help refinancing Starting December 1^st, email me your name, email address, phone number, property address, current loan amount and interest rate. I will pass this along to a couple preferred partners that can help you with the refinance.

Please start doing this now rather than wait until December 1^st.

We cannot confirm yet, but it is rumored the program will only apply to Primary Residence---one of the details we are all waiting for. Keep in mind this is for homeowners who are current on their payments.

If you're still on the fence about what to do with your home in Las Vegas or Southern California, please call or email me for a complimentary consultation, no strings attached.

Chris@LasVegasInvesting.com

Las Vegas % of Homes Lost to Foreclosure

2011-11-15T13:45:00.001-08:00

As of Oct 26, 2011 - 410,923 total SFR, Condo & Townhouse properties in Clark County. Of those:

72,579 currently have a LTV of 80% or less

134,405 currently have a LTV up to 100%, or 32%

67,055 currently have a LTV of 101 – 125%, or 16%

50,401 currently have a LTV of 125 – 150%, or 12%

155,304 currently have a LTV of greater than 150%, or 38%

66% of all homes in Clark County with a mortgage are worth less than what is owed (underwater). If you add the other 32% of homes that are worth up to as much as the loan against the homes, that’s 98%. All information is deemed reliable however ORTC does not assume responsibility for the accuracy of these numbers.

2 numbers below zip code, 1st is percent of foreclosures sold, 2nd is actual number of units.

In less than four years, more than 100,000 homes in Las Vegas have been lost through foreclosure. That’s 18% of our privately owned housing stock: that’s nearly one home in five. And we’re nowhere near finished with foreclosures. In all likelihood, we have another 100,000 yet to go, and at the current rate, that’s another four years.

-Data and commentary from Linzy Turner at Old Republic, and I agree.

October Closings in Las Vegas

2011-11-09T16:08:00.000-08:00

Closed Properties

Re Sale – 988 or 26.2%

Short Sale – 961 or 25.5%

REO – 1,823 or 48.3%

Total Closings = 3,772

Of these closings, 1,860 were CASH! 806 were FHA, 187 were VA and 874 were Conventional Financing.

Bank of America Refinances

2011-10-27T15:44:00.000-07:00

This letter comes from Bank of America.
This isn't an endorsement of any sort.

The Federal Housing Finance Agency (FHFA) announced plans this week to expand eligibility for the Home Affordable Refinance Program (HARP). HARP is a federal program established to help homeowners refinance their mortgages if they are current on their payments but are having difficulties obtaining a traditional refinance because the value of their home has declined.

The just-announced expansion is expected to open the program to more borrowers and is anticipated to be launched December 1. As a leader in HARP refinances since the program began in 2009, Bank of America is preparing to offer the expanded program to customers at that time.

Borrowers interested in refinancing under current guidelines should contact their mortgage loan officer or call a Bank of America Home Loans sales representative at 1.800.687.6262 to determine their qualifications for existing programs. You can learn more about HARP by visiting the Making Home Affordable website.

Homeowners with a Bank of America mortgage who are currently experiencing a financial hardship and are struggling to make their mortgage payments should contact Bank of America Home Loans immediately at 1.800.846.2222.

At Bank of America, we have a proud record of supporting efforts to resolve the housing crisis. We are the leading lender for the HARP program and have helped more than 250,000 customers refinance with HARP loans since the program’s inception.

Occupy Your Mindset

2011-10-26T14:10:00.000-07:00

We hear all this talk about Occupy Wall Street or your local city blocks and it got me thinking about this 1% that earn the majority of income in this country, at least that's what I think the Occupier's issue is regarding. Let me also say that I'm not for one side or another and this isn't a political debate at all, in fact it's mindset related so that should intrigue both parties and the middle class at the same time.

While I don't believe it's healthy to have a country run by an Oligarchy, I understand this claim that the top 1% of the people of this country own 40% or 50% of the wealth in America. I do think this holds true throughout the world. We see it in Russia, China, and parts of Latin America. We're heading more in this direction every year and I think the only way out is a shift in mindset for the better. If more and more people allowed themselves to be successful, to have their dream life, we could pull this ratio back to the more standard 80/20. You see, these ratios have always been there, it's always been 20% gets 80%, they even named a principle after it. The Pareto principle has always been that 20% of the people make goals, 20% receive 80% of the rewards. This principle has worked in my favor ever since I became conscious of it. There is so much good stuff out there, why aren't you going after it?

Look, I've failed at my fair share along the way; I've wanted to quit just like you might want to quit; I certainly wasn't "gifted" with any special inheritance or perks of last name. Without a doubt the advantages I've had, which come from personal experience, are that I can make solid quick decisions; I learn from each mistake by taking time after the event and really analyzing what went wrong; and I cut my losses fairly quick because I have a good sense of where things are headed and can describe the water before drowning in it. At this stage in my life I look at things differently and it might be time for you to do the same thing.

Mindset is a muscle, just like any body part, if you ignore it, it will wither away to nothing, all fat, no muscle, just extra skin, yeah like that... So when you're starting out don't get frustrated when you get off track or get distracted easily. With steady exercise (4 times daily), you need to allow yourself to think about dreams, goals, wants and needs, exotic places, fast cars, fitness dreams, travel, writing the book, visit the grand kids, all that stuff, all those exciting things and dreams and WOW, so much to do. Trust me, you won't sit and mope after those kind of daydreams with purpose. As time goes on you'll get better and better at blocking out the negatives and removing them completely from your mental dialogue. Get those damn monkeys off your back!! Send them away and allow yourself the time to get this done. Get on purpose because those dreams and wants and exciting visions won't just mysteriously appear in your life, you need to go after it and don't delay. We all need to get into that 20% and then hustle your way towards the single digits, not for the wealth benefits, but for the health benefits and the beauty of life. Let's flip this around so that more of us will experience a different life, a more active and fulfilling life, one that you're proud to leave as a legacy to your kids and grand kids. A strong mindset starts at a young age, be an example setter, take ownership of that and spread your success all around you. The mind is much stronger than you can even begin to imagine.

Kitec Plumbing update in Las Vegas

2011-10-04T09:31:00.000-07:00

I don't usually promote other businesses but these guys have been very diligent about the Kitec Plumbing issues in Las Vegas. I've successfully sold quite a few homes with the repairs done and it gets done quickly and without a big mess. If you have any questions, please feel free to save this as a reference. You can also email me at: Chris@LasVegasInvesting.com

Thanks.

Doing our best to keep you informed we have some breaking news. On September 15, 2011 The attorney's representing the plaintiff's in the Clark County KITEC settlement (JONES, KEMP, and COULTHARD) released a press statement regarding the deadline for having KITEC repairs performed at no cost to the homeowner.

Take note of this deadline in order to protect your clients and enable you to choose the proper course of action to follow in the event you encounter a KITEC plumbed home.

At a hearing held on September 14, 2011, the Honorable Timothy C. Williams extended the deadline by three months for thousands of Clark County homeowners to claim free re-plumbs of the defective brass Kitec plumbing systems. The eligible homeowners now have until

March 31, 2012

March 31, 2012 is the new deadline to claim the free replumbs made possible through settlements reached in the In re Kitec Fitting Litigation class action, including the $90 million settlement with the fitting manufacturer, Ipex, Inc. and Ipex USA, LLC.

Homeowners must act before the deadline or they will forfeit any right to claim relief from the class action settlements and will have no rights to pursue Kitec-related claims against the manufacturer or the Home Builders or Plumbersresponsible for installing the defective Kitec plumbing systems.

The link for reviewing the online press release from JONES, KEMP, and COULTHARD is available here.

It appears that approximately 6,000 homes exist in a significant number of specific Las Vegas Valley communities that have not yet had the KITEC re-plumb performed.

This includes communities established by the following home builders:

AMERICAN PREMIERE
ASTORIA HOMES
AVANTE HOMES
CONCORDIA HOMES
D.R. HORTON HOMES
DAYBREAK GARDENS
DEL WEBB
DESERT WIND HOMES
DEVELOPERS OF NEVADA
DRAEGER
H&H DEVELOPMENT
KB HOMES
LBM DEVELOPMENT
NIGRO HOMES
PAGEANTRY HOMES
PLATIS HOMES
PULTE
RICHMOND AMERICAN
RL HOMES
SBA DEVELOPMENT
SIGNATURE
WESTMARK HOMES
WEXFORD HOMES
WILLIAM LYON HOMES

For a list of the specific communities, subdivisions, and subclasses affected by the deadline extension please click here

Spectrum Inspection Group is a Resource for You!

Spectrum Inspection Group's goal is to be an asset to every real estate agentin Southern Nevada.

It doesn't matter whether or not you use our inspection services.

If you have Kitec questions we will do our best to provide you with solid guidance and direction to help you achieve an acceptable course of action or path of resolution.

Spectrum Inspection Group performs nearly forty high quality home inspections each week. All of our inspectors have received advanced training on Kitec and we are adept at recognizing the symptoms of Kitec.

Should you need a home inspector we're one the the oldest and largest inspection firms in Southern Nevada and are the leader in our industry providing the highest quality and most detailed inspections available. Our goal is to have your home buyers say Christopher Whittaker has the best home inspector we ever used!

If you need any further guidance or direction with Kitec or any other structural / mechanical issue please feel free to give us a call. We're here to serve.

Sincerely Yours,

Paul Donohue, RHI, CREI, RREI
Spectrum Inspection Group Inc.
8275 S. Eastern Avenue, STE 200-276
Las Vegas, NV 89123

Phone: (702) 269-6716

Website:
www.SpectrumInspectionGroup.com

The information in this publication does not constitute legal advice; we are not attorney's. You are advised to contact the professionals in the specific disciplines required before executing any course of action or path of resolution with regard to defective plumbing.

Links for Additional Information

Kemp, Jones, and Coulthard

Total Class Solutions

Clark County Class Action Suit Website

COURT AUTHORIZED PLUMBING CONTRACTORS:

Delta Mechanical Website

Dynamic Plumbing Systems

Repipe Specialists

Plumbing Express

ARTICLES

Las Vegas Sun Article

Another Las Vegas Sun Article

OTHER IMPORTANT LINKS

Clark County Builder and Development List

New Kitec Plumbing System Settlement Website

May 3, 2011 News Article

KITEC Deadline Announcement

List of Outstanding Communities

Questions? Call:
(702) 269-6716

From an actual inspection

The owner of Spectrum Inspection Group is a retired U.S. Navy engineering Chief Petty Officer. Consequently a $50.00 military discount is provided to all active duty, retired, and veterans of the U.S. armed forces including the United States Coast Guard.
This offer never expires!
(We reserve the right to chide shallow water sailors)

(702) 269-6716

Save $25.00	When calling to schedule an inspection be sure to cite coupon code 100311KU and the buyers will receive a $25.00 discount off our regularly published inspection fees. This offer cannot be combined with any other offer or discounts.
Offer Expires: October 15, 2011

Hollywood Hills Mansion Auction by LPS Oct. 12.

2011-09-16T12:59:00.000-07:00

Las Vegas Market Condition Report for August 2011

2011-09-14T15:51:00.000-07:00

Courtesy of Applied Analysis- Total Inventory Falls Below Prior Year Levels for First Time in 2011
According to the Greater Las Vegas Association of Realtors’ Multiple Listing Service (MLS), total resale home inventory continued to decline in August, falling below prior year levels for the first time in 2011.
The number of contracted homes also fell this month, attributable to declines in both the number of

contingent homes and the number of pending homes sales. Meanwhile, the count of distressed properties

declined, but they continue to represent the majority share of resale home inventory. Although total inventory is

below prior year levels, the resale home market remains somewhat fragile.

Total inventory is continuing to decline, while share of owner occupied homes is increasing slightly. After

reporting increases in July, the number of owner occupied homes fell to 5,211 in August. Owner

occupied homes now account for 36.5 percent of total inventory, which is a 2.2-percentage point

increase over last year. Tenant occupied homes accounted for 10.7 percent of total resale home

inventory by the end of August with 1,522 properties. The share is down 0.2-percentage points from

August 2010. The number of vacant homes fell to 7,535 in August 2011. Vacant homes now account for

52.8 percent of total inventory, which is a 2.0-percentage point decrease from last year. Total inventory

was 14,268 by the end of August 2011, down 3.9 percent when compared to last year. Compared to

the preceding month (July 2011), availability remains down 3.0 percent, with owner-occupied, tenant occupied

and vacant homes all reporting declines.

The number of contracted homes is declining. The number of contracted homes (contingent and

pending) fell to 13,284 by the close of August 2011, which is 4.3 percent less than August 2010.

Contingent homes, properties in which a contract is in place, but closing depends on certain factors,

totaled 10,724 by the end of the month. The total is down 5.1 percent when compared to last year.

Meanwhile, there were 2,560 pending homes in August 2011. Pending homes are those that have

completed all significant hurdles and are awaiting customary closing procedures. Compared with last

month, the number of pending homes declined a significant 9.5 percent. However, when compared

with last year, the decline was a less dramatic 0.7 percent.

The number of distressed properties is declining, but they continue to account for the majority of total

inventory. There were 3,249 bank owned properties listed as available at the end of August, which

accounts for 22.8 percent of total inventory. The number of bank owned properties has increased 11.5

percent since last year, while as a share of total listings, REOs have increased 3.2-percentage points.

Shorts sale listings totaled 6,334 at the end of August, representing 44.4 percent of total availability. The

number of short sales listings has declined 5.6 percent since last year, while the relative share has fallen

a modest 0.8-percentage point. Although the number of distressed properties (bank owned and short

sale) has declined 0.4 percent since last year, they accounted for 67.2 percent of total inventory in

August, representing a 2.4-percentage point increase from the 64.8 percent share reported in August

2010. (Applied Analysis Aug 2011 Market Watch)

Click link below for:

Another great article about Las Vegas home sales

9-11 Remembered 10 years later

2011-09-11T06:00:00.000-07:00

The phone rang super early that morning. I answered it with fear of bad news and it was my sister Samantha (on the east coast) who had just seen the plane hit the first tower and was worried it was me in that plane. I had just flown in from Portland, Maine the night before but many, many times I flew out of Boston's Logan Airport because that was a cheaper flight than the one to Portland. When I answered the phone she was crying and obviously relieved that I was on the other line. She said, "Turn on the news. It looks like an accident in New York." I turned it on and shockingly the smoke coming from tower 1 was all over the news channels. It was being reported as an accident of course because anything more would be terrifying. I kept thinking as I was waking and glued to the television, "How does a pilot not steer away from that huge building?" Then the other plane hit and I think the entire country reacted the same way at the same time. Didn't you?

Think of how that one day has shaped the last decade of our lives. We've been told that the terrorists wanted to crush our financial markets by taking out the symbol of America's wealth and strength, The World Trade Centers. Indirectly it worked. I was new to real estate and I remember buyers and sellers stopped everything for a few months. I remember going to my broker (with 35 years of experience) with nervousness for the future of our industry. She of course replied with, "Chris, I was selling real estate during the Vietnam War." Interest rates were lowered to stimulate spending and it worked, but indirectly isn't that what started us down the path of financial self destruction?

The week after 9/11 my best friend was getting married in Whistler, BC and his bride was already there. If you remember all flights were cancelled for days and we had to make the decision to drive from Las Vegas to Whistler quickly or miss the main event. As we drove up the west coast the patriotism was overwhelming. I was so proud of our tenacity as a country to get through this together. Every store front visible from the highways had some message to our citizens or a flag waving symbolically. Pride was evident. 10 years later are we still as proud of our country?

Memories of 9/11 will be like memories of when the shuttle blew up. Do you remember when that happened? Where were you? Or for my parent's generation it'll be like the news story of JFK getting shot or Martin Luther King Jr. There are giant symbols every decade or so that remind us how even our toughest can be taken down. They are also reminders of how fragile life really is and how short it can be.

S&P 500 stands today where it stood 13 years ago

2011-09-02T13:43:00.000-07:00

Some of you may know that I subscribe to Elliott Wave which (let me try to summarize, yet still sound logical) makes the argument that stock market fluctuations (all markets for that matter) move with the psychology of the masses. Essentially when people feel bad, the market reacts that way. Obviously fear creates sell offs and euphoria creates buying frenzy. The trick is to figure out what the masses are feeling on a regular basis before they feel it. Elliott Wave also uses a lot of graphs and uses a very large historical pattern instead of 10 year blips.

Robert Folsom's email today says the following:

"... we don't realize how loud and aggressive Wall Street and the media had become: It reminded me that when someone says "Don't Panic!" so loudly that their face turns red, you need to ask yourself: Why are they so emotional about not getting emotional?

Just a few examples from the financial news in August include:

Magazine covers that show Bulls bashing Bears
Headlines which claim that stocks will "save your retirement"
Study results that reach huge conclusions from tiny sample sizes
Opinion columns by academics who still advocate discredited "buy and hold" theories

There's more, but you get the point. Yet just think for a moment about what it means to publicly advocate "buy and hold" strategies. The S&P 500 stands today where it stood 13 years ago. Yes, that's 1998. Or you can imagine the stock market in the year 2024 -- 13 years ahead. That's a long time to go nowhere.

Of course, the real difference between smell vs. taste will soon be painfully clear to investors who heed the recent "wisdom" from Wall Street and the media. The flavor will turn bitter indeed."

Buy and Hold is dead in my opinion. What has it done for your portfolio, your retirement? Are you better today? I'm not a financial adviser but please remember that historically September and October have been the worst months to be in the stock market. I wish you all the luck in the world.

Are You Busy But Not Accomplishing Anything? (From Seeds of Success)

2011-08-03T06:55:00.000-07:00

My coach, Michael Friedman with Real Estate Inner Circle, sent me this yesterday and I wanted to share it because it's so good. Benjamin Franklin once said, "Don't confuse motion with action." If
you are frantically busy but not getting any closer to your goals, try these
tips from the experts.

Use the rule of five, says Jack Canfield, co-founder of the Chicken Soup
for the Soul series. Everyone has a breakthrough goala goal that you have
always wanted to reach or one that could change your life. List five actions
you could take today on your breakthrough goal and then do them. Repeat the
same steps every day until you break through.

Get up one hour earlier than the rest of your household. Gain clarity on
your priorities and start your day empowered. "Use the time as an inspirational
hourreconnect with your mission, core values and review your goals," says
Robin Sharma, motivational expert and author of The Leader Who Had No Title.
"This will build deep focus against distractions as you move through your
day." Or spend your hour meditating, visualizing achieving what's most important
to you, writing in a journal, listening to music, reciting affirmations or
exercising.

Confront fear. Andy Andrews, best-selling author of The Traveler's Gift,
says people need to identify where fear has hindered their progress. "List
five ways fear held you back and for each write down the actions you are
committed to taking on a consistent basis to make your fears irrelevant."

Push through major snags. Lots of people get stuck or procrastinate when
they don't know how to do the next step on a goal, but there's always a solution.
Talk to someone who has done it before, brainstorm with other people or ask
for help. Sandra Felton and Marsha Sims, authors of Organizing Your Day,
suggest taking a break, changing your scenery or taking a walk.

Just take time everyday to focus on not being average. Nothing wrong with
average, just in this day and age, you won't like the end result if all you
do is what everyone else does. Be bolder than that, you're better than that,
you have my permission to get after it and dream big again.

What's Made 2011 so Successful?

2011-06-27T11:49:00.000-07:00

Have you asked yourself that question recently? Now's a good time to think about it since it is the halfway mark. My real estate coach (Michael Friedman, Real Estate Inner Circle) asked me that the last time we spoke and 4 things came to mind right away. Would you mind if I shared them with you?

1. Leverage- After years of fear (no assistant since 2008) I hired Bridget last July. Yes it was a commitment of monthly dollars regardless of my production and yes I was worried about not having enough to do to keep her busy, but once I got over those obstacles my production has increased and I've been able to accomplish my big dream of living by the ocean. I couldn't have made that happen without a great assistant. Remember the phrase, "That which you fear the most means you should probably do it," because that's the quote I used to convince me that now was the time to pay for the kind of help I needed.

2. Coaching- I had never paid for coaching before and now it's been over a year and it was an excellent investment. Weekly accountability plus some great advice, ideas, tools of the trade, scripts, etc makes it worth the money. Again, fear at the beginning because it's expensive, but now looking back, it was well worth it. I highly recommend Michael Friedman AND my wife Dana Whittaker for amazing results.

3. Business planning early- I taught a class in September of last year for a few agents in the office. It forced me to do my 2011 business plan by the end of September which is the earliest I had ever done one. Usually I wait until December but with short sales taking lots of time and deals in general longer than they used to be, the business plan is critical for a productive new year and early is good. In fact, we're talking about doing 2012's by mid September.

4. Morning with Mo lead generation challenge- Mo's visit last October was critical for my push into 2011. She challenged the ALC to lead generate in the bullpen for 30 business days (6 weeks) which started November 1st and went into the holiday season. It was the push I needed to get my business flowing. So much so that I plan to do the same challenge with myself starting September 1st of this year. 2 hours of lead generation in the office M-F from 9-11 until Mid December. If you want 2012 to be different than 2011 start now.

My Vision Board

I encourage all of you to consider slight tweaks to your business right now to have a better and different 2nd half of 2011 and 2012. I firmly believe it starts with goal setting. If you mess this up, it'll throw you off for the year. I'm an expert in goal setting and am still on track with my 2011 goals which I set last September. If you want my help, reach out to me. All the best to you and your career in the 2nd half of this year. You still have time to reach your potential.

What's a buyer to do?

2011-06-22T12:25:00.000-07:00

So much data, so little time to decipher. We've got May's numbers to report in Las Vegas. Before I report that, let me say this. IF YOU'RE A SELLER AND YOU NEED TO SELL IN THE NEXT 3-5 YEARS, SELL NOW! Hope that message is clear enough. Sometimes sellers ask me what they should do, I answer directly like this and then years go by and they ask me again. I think they think I'm just trying to get a sale out of them? Anyways, here's the good news. We sold 4,942 homes in May alone. Huge number. Almost 20% more than this time last year and that was with the tax credit (remember that "great idea" coming from Washington?).

Of those sales, 1365 were traditional, 826 were short sales, 746 sold at auction, 2005 were foreclosures (REO). The average sales price for all of those combined was $106,200 which is a decline of 14% from last year. We're still trending down. As I reported last year, unfortunately condition is playing a factor in the decline of prices as banks don't want to repair these homes and unhappy occupants are leaving on bitter terms and that's reflected in the condition of these homes.

This summer will be hot in Las Vegas for real estate buyers again. We're still seeing multiple offers on anything less than $175,000 if it's in good shape. Luxury homes are selling but much less frequently as financing is difficult in the jumbo arena. Rates are still very reasonable and if you qualify it's definitely a great time to buy if you plan to hold for 10 years or more.

The price per square foot for resales is about $70.35 and for new homes it's $99.49. There were only 9 high rise condo closings in May. Not a good place to put your money in my opinion.

If you're a buyer who's feeling secure with employment and income, you've saved money for emergency purposes and you're ready to commit to being a homeowner, NOW is a great time to buy. If you're an investor, wait until the fall/winter (less competition). If you're a seller with equity, sell now. If you're a seller who's underwater, sell now and be prepared for a lengthy negotiation period. Feel free to contact me anytime with your questions and I'll give you straight answers. You may not like what you hear, but it's the truth and that'll "set you free."

A Tribute to my Dad on Father's Day

2011-06-15T10:38:00.000-07:00

My Dad turned 70 a couple of weeks ago. He still walks every night, putting a few miles a day on his sneakers. I think it's a great way to keep him fit and get some fresh air in the silence of night time in Maine. He also does a few crunches in the morning when he wakes before he goes downstairs for his coffee making ritual. I've recently reflected on his life because of that magic 7-0 and for those of you who know me, you may find some similarities between father and son.

Dad grew up in Lexington, MA, across from a park which turned into an ice skating rink in the winter. He played hockey, did chin ups, played in the woods and hills around his home, walked to school, played with kids from the neighborhood who are still life long friends of his and he kept a diary which he allowed me to read a decade ago. His childhood was magical. He won a new bike, listened to records, talked about girls, played sports, all the usual boy stuff and had a great family life.

When my Dad went to college he moved away from home and became the president of his fraternity. He was a good student and a very social teenager. He loved corvettes and actually owned one for a few years before having us kids. Dad also put in a couple years of service in the Navy. Though he never saw serious battle (thank God) he did get to travel the world. He was a navigator.

He met my Mom in Ocean Park, Maine where he had a summer cottage which is still part of our family 100 years later. They used to sit in circles on the beach and talk and laugh and listen to music back then. The beach was a gathering place during the day and at night it would be the Rec Hall for dances. My parents married in '68 and had 2 kids over the next couple of years. Growing up with my Dad and Mom was fantastic. I couldn't have asked for a better upbringing. They spent time thinking about where to settle and they picked Chelmsford, MA for it's quality schools. My Dad went to work everyday. He commuted through Boston traffic and put in a long day in Human Resources and then would come home and have a couple of Black Label beers (when I was young). This was kind of an after work ritual. On weekends we would watch Bruins hockey, eat peanuts and fondue in the family room and Dad was responsible for chopping wood for the wood burning stove. Bringing in wood from the pile was a chore for me early in my childhood. Dad would light the fire and about 50% of the time someone would have to man the front door to get the smoke out quickly before the detectors went off. That stove was a blessing, nothing better than taking off all our outdoor gear in the middle of winter and watching the steam come off our clothes as we warmed up by the fire.

In the summer we would spend a couple of weeks in Maine, my Dad would drive up on Wednesdays for the night and then on weekends he'd come into Ocean Park and we'd spend our Saturdays and Sundays at the beach, looking for sand dollars and crabs and eating lobster and Dad loved his steamers and still loves his baked haddock. In 1980 my Dad ventured on his own, leaving the job he knew so well to start his own business. As a family we'd discuss what to name the company and we'd go over different logo designs. We settled on Whittaker Associates and we even converted the garage into a large office with a sitting area and big desk by the front window so my Dad wouldn't have to commute and he could be there for lunch and dinner with the family. He was on the phone, drumming up business, East coast in the morning then calling the West coast at the end of the day. Sometimes times were tough, sometimes we'd celebrate success. He earned a percentage of the salary of the person he placed for printed circuit board companies. When he'd get a VP or top MGR there was a lot of excitement. We never really talked about money growing up but I thought his business was interesting.

That same year, 1980, while driving around looking at real estate in Maine which we loved to do for some reason, we stumbled upon a small A-Frame cottage tucked back in the woods. It had mildew on the frame and was small but was around $20,000. My Dad and Mom thought long and hard about this one because he had just started the business. They took a risk and bought the cottage so we could spend the entire summer in Maine instead of just 2 weeks. My Dad was so proud of this achievement and we couldn't have been happier as a family. He would continue the Wednesday and weekend ritual every summer for decades.

As a teenager my Dad was a great role model. He played catch with me in the backyard, he was an umpire when I played Little League, he was an assistant scout master when I was in Boy Scouts and even came with us on camp outs and Jamborees. When I started dating he would see when I was upset and slip notes under my bedroom door to make me feel better. When I went away to college he and my Mom would send me mail, real mail, every single week for 4 years and that's continued to this day (20 years later).

After graduating college, it was my turn to venture out on my own. Armed with a college degree, $1100 to my name and a giant green Navy dufflebag from my Dad I got on a train in Boston and said my good byes to my Mom and Dad. Dad cried, the kind of cry I only saw once before when we got the news that his Dad had died. Almost 20 years have gone by since that day. We've all gotten older and had the ups and downs of life. The decisions that I've made I'm sure are somehow related to my Dad. His character, his example, his commitment to family, his entrepreneurial spirit, his love of outdoors and peace and quiet and simplicity, they're part of me and I thank him for it, especially THIS Father's Day.

Fannie Mae incentives

2011-06-14T10:28:00.000-07:00

Fannie Mae is offering up to a 3.5% incentive for buyers
who purchase and close on a HomePath property
by October 31, 2011.*
*Lenders may impose their own limitations on the use of the up to 3.5% incentive, so buyers should consult their lenders for guidance.
To be eligible for this incentive:
• Buyers or their agents must request closing cost assistance at initial offer
• Initial offers must be submitted on or after June 14, 2011
• Property sales must close on or before October 31, 2011
• Buyers must reside in the home as their primary residence — auction, pool, and investor sales are excluded

Don't Get Derailed, Stay On Track

2011-06-01T11:22:00.000-07:00

I am a great observer of human nature. That's a character trait that I've had all my life. Instead of jumping in and taking charge, I find myself watching at a distance and slowly dipping my toes in the water instead of jumping in because I want to see who's the lifeguard, and if there's any big rocks in the water that might damage my chance for success. So far this practice has done me well. I take a leadership position but not at the expense of stepping on toes or fracturing boundaries. I'm not pushy, yet I seem to get almost everything I want.

One advantage I have over others is I'm adaptable which means that the typical curve balls in life will still catch me off guard, but I can usually find a way to make the best of it or create a different outcome that still benefits my situation. Life is a series of adjustments. When you're going down that track that you thought was straight, sometimes instead of a curve or a tunnel coming at you, it's another train. Don't get derailed, back up and go a different direction.

In real estate, there's a lot of negotiations that go into making a deal close. On top of that, you've also got multiple personalities. You've got the seller, buyer and the other agent. Many times these real estate transactions fail to close because of personality, not because of the house or the inspection or the financing. I've often thought, we need to have a separate contingency period for personality disorders so we can see what kind of caged animals are involved in the deal. If you work with me you'll discover that one of the most important questions I ask is "How bad do they want the house?" If they want the house, I can overcome just about any obstacle that gets in the way of that happening during a normal 30 day period (except fire, job loss, and sheer crazy). I've had agents that think the way to seal the deal is to yell and scream and lie and falsely accuse just to be "right" or just so their clients think they're "working" for them. I laugh and shrug it off and let my ego stay where it belongs, deep in my intuition.

I think the key to success in this business, especially as it gets tougher and tougher, will be your adaptability, your lack of ego, and your ability to hang on when everyone else has let go. You're going to get hit, you'll get tired, you'll want to quit, but if you hold strong and stay on track, it'll get you wherever it is you want to go, and you'll get there much faster than if you just give up.

Foreclosures, REOs and Short Sales, oh my!

2011-05-27T08:39:00.000-07:00

Wouldn't it be cool to have a yellow brick road to follow through this maze of investment opportunities? With foreclosures, bank-owned properties and short sales at a record high, it can be very confusing! Let me give you my perspective as your local economist and real estate expert.

You need a guide to navigate your way to the best possible investment opportunities to achieve your financial goals. Call me today to show you how I have helped other investors like you get started.

Chris Whittaker

702.285.1363

Approved REO Broker/Salesperson

www.LasVegasInvesting.com

Dana Whittaker

702.300.7653

Broker/Salesperson

Certified Advanced Professional Coach

www.CoachWhittaker.com

Las Vegas Real Estate Fast Facts for April

2011-05-25T08:43:00.000-07:00

APRIL 2011 FAST FACTS:

The good news: there were over 5,000 homes sold in Las Vegas during the month of April. The bad news: prices continued their downward slide.

Homebuilders struggle as new home sales have practically come to a halt, with only 267 closings being recorded last month. New home closings now account for only 5% of total home sales, as the average price per sq. foot for a new home sinks to just $91 per square foot. (Average size = 2088 sq ft). For some time now we (SalesTraq) have been saying “New home prices are about as low as they can go . . . builders cannot afford to sell them for less money than it cost to build them.”

Indications are that builder confidence in the near term future of the housing market remains low, with only 313 new home permits issued. YTD 1,141 permits have been issued which is 40% fewer than the previous year. Last year’s new home sales tallied just over 5,000 units, with nearly 1,000 of them recording in July, thanks to the homebuyer tax credit. But with no homebuyer tax credit this year, new home sales probably won’t exceed 3,500 units.

April’s existing home sales consist of these four categories:

1. Normal, non-distressed sales, 29%

2. Short Sales, 17%

3. REO Sales, 41%

4. Auction Sales, 16%

Existing home prices also continue to decline and now stand at just $70 per square foot. (Average size = 1788 sq ft). If the current trend continues, the median price of an existing home could hit a low of $100,000 by the end of this year. If that happens, it will be the lowest median home price in Las Vegas since 1989, some 22 years ago. (I've seen some neighborhoods reverting back to early 70's pricing).

Bank repossessions continue to flood our market. The YTD number is 6,476, which is 18% higher than last year. Realty Trac reports that nationally, the time from NOD (Notice of Default- typically 90 days late) to foreclosure sale is now running over 400 days. Zillow estimates that 69% of homeowners in Nevada are still underwater. We appear to be stuck in a “catch 22”; the lower prices go, the more properties there are which are labeled as “underwater”!

CoreLogic estimates than just under 20% of Nevadans are 90 days or more delinquent on their house payment. If this is true, we still have many, many more foreclosures/distressed sales in our future.

Yet with all this, home sales remain brisk! 50% of all sales today are for CASH. Many investors apparently feel that our housing market is over corrected and under-valued. We feel the same way. We expect prices will continue to decline through the end of this year, and possibly into next year, but not by much. We do not look for a quick turnaround, but we do feel that we are “at or near” the bottom of this cycle, and that the long term outlook is excellent. Every recession in history has come to an end at some point, as will this one. Meanwhile, we say “If you want to look like a genius five years from now, buy all the Las Vegas real estate you can today.”

Data from Steve Bottfeld, Marketing Solutions

The Housing Bunny Keeps Hopping, but in Which Direction?

2011-04-20T11:21:00.000-07:00

HAPPY EASTER

  Easter brings childhood memories of searching for chocolate eggs in silver and gold foil hidden in the rock walls of our New England home. The grand prize was a hollow chocolate bunny, man was it delicious. The tradition hasn't changed much in almost 40 years since I was a kid. My son grabs the basket, races out the door trying to beat his cousins and looks in all the nooks and crannies until he's rewarded, then onto the next bush for more.

  As Easter approaches yet another year, I'm reflective of other things as well. We're now 3 years into a recession (in my opinion since officially we're out of one). The economists will call it a double dip or multiple dip, but in essence it's a continuing bounce along the bottom with occasional hope and promise. We're still selling around 3000 units a month. Our bank inventory is still strong. Nationally 1 in 3 closings is cash, in Las Vegas it's 1 out of 2. Most of our sales in Las Vegas are on the lower end of things and many of the people I talk to on a regular basis are still hurting financially. Sadly, I don't see that trend changing for the next 3-5 years.

  The majority of investors I see in this market are all doing the same thing. They're all buying on the low end (under $60,000), spending some money to fix it up, then trying to resell it for more in a short period of time. Sometimes I'll do comparables in an older section of Las Vegas and see 60 homes for sale and see that the majority of them are flips. Unfortunately there's going to be a lot of investors who get burned for a second time.

  If we can resurrect some jobs then there's hope for this market. If not, then it'll be a tough climb out of a deep hole in the ground. Fortunately, the housing Bunny is very resourceful and can often find a way through something very difficult when the path is unclear.

Las Vegas to Carlsbad, CA- how we pulled it off

2011-03-16T16:37:00.000-07:00

Going from this

to this!

"It is in your moments of decision that your destiny is shaped." -Anthony Robbins

The decision was made. Sealed together with a pinky swear in the car ride back from another fantastic trip to Southern California. We swore that in two and a half years we'd be living by the beach. The date was September, 2008.

Dana grew up in San Diego, I spent my childhood summers on the beach in Maine. My blood bleeds salt water, I used to swear I'd smell that salty marsh smell sometimes even in the desert of Las Vegas, my home for the past 18 years.
"How the heck are we going to pull this off?" was the immediate question?
"Ask better questions..." was the response.
"Okay, which coast?" better question... thus the investigation began. We searched and read and traveled and got feedback from family and friends on both coasts. We spent a day in Cape Elizabeth, Maine looking at property, driving by elementary schools, checking out the location of the office, our office if we were to move there. We decided, though the school system is world class and the town of Portland is right up our alley, we just couldn't do winters in that climate.

Okay, so what about California? We had done a serious home search back in 2005 before we bought our condo in Pacific Beach, we scoured from Sunset Beach all the way south and thought we had our spot, but after many long weekends and holidays we discovered it's just too noisy and not a great place to raise kids. Our sights were set on Carlsbad.

"How can we leave this real estate market and start over in a brand new place?"
"Ask better questions. Remember, it's not the HOW it's the WHY?"
"Why do I need to leave this real estate business in Las Vegas? I don't! Why can't we just expand into the North County San Diego region and keep our team here going strong keeping our income steady while we build our business in Carlsbad? YES! That's the answer."

And so it began, we left Seven Hills, moved into a rental in Summerlin (because we knew it would be only a couple of years), downsized our expenses to save money and then in the fall of 2010 another reminder. We got pregnant, very exciting, and the baby was due in May of 2011. Dana and I looked at each other and said, well we can move to California in 2012 since we didn't want to move when she was really pregnant. We unfortunately had a miscarriage in September which really upset us and made us question everything but then something exciting happened (in hindsight). We spent two full days driving around Carlsbad and we both looked at each other and said, "Let's make this happen!" We got pregnant again and this healthy baby girl is due at the end of July which allows us to move and get settled before her arrival (crazy how that works out isn't it?).

While reading "The 4- hour Work Week" by Timothy Ferris, he asked "Why does everyone think they have all this time left at the end of their life for retirement?" He asks, "Why aren't you doing NOW what you want to do in retirement?" I remember thinking, "Great question!" Why NOT now? Let's really make this happen!

So April 1st we'll be moving into our new place about 8 miles from the beach and 8 miles from the office with excellent schools, family will be 45 minutes away instead of 5 hours, a great Doctor for Dana, and real estate prices that are holding steady around $450,000. I've got my real estate team still here in Las Vegas, working hard, closing 4-7 deals a month and some time to get ramped up to take the Carlsbad market this summer. Asking better questions, and knowing what you really want for yourself and your family are critical to having your best life NOW instead of hoping it's there for you in retirement.

March Market Condition Report for Las Vegas PLUS Fraud & Feng Shui

2011-03-10T14:54:00.000-08:00

Single Family Residential Sold Volume:
February's reported sales volume of 2,591 units is the best February of the past 7 years that I have been collecting data for my clients. This was a 3.3% increase over January, and an 8.4% increase compared to February of last year. Based on the historical trends, March has always shown a significant increase in closed SFR activity.

Single Family Residential Average Sold Price:

February 's average sales price dropped -0.5% from January 2011, and -7.1% from same month last year. Most housing analysts predict a further decline in Las Vegas housing prices as foreclosures and short sales, or homes sold for less than the principal balance, continue to dominate the market. In conjunction with prices falling, the percentage of cash buyers has risen, reaching 53.8 percent in February.

Single Family Residential Inventory:

At the end of February the SFR "available" units (only those without offers) stood at 12,019 units. This is a -3.6% decline over the January units, and a +50.7% increase over February of 2010. When including pending and contingent to this "available unit" number, the total rises to 22,307. This is a +1.3% increase over January, and when compared to February of 2010, a +10.1% increase for available units.

Single Family Residential 'Sold' Dollar Value:

February's total SFR dollar value for the 2,591 SFR units was $405,069,742. This was a +2.8% increase compared to January 2011, but was a +0.7% increase compared to the February 2010 total dollar value.

Please check out Hubble Smith’s article on the Las Vegas Real Estate Market in today’s Las Vegas Review Journal: http://www.lvrj.com/business/home-sales-prices-rebound-in-february-117596943.html

March 2011

More Americans Confident About Home Ownership

Americans are more confident about the stability of home prices than they were at the beginning of 2010, according to Fannie Mae's latest national housing survey, conducted between October 2010 and December 2010.. And when it comes to home ownership, younger Americans are particularly optimistic, the survey finds.

Nearly 80 percent of all respondents, including home owners and renters, surveyed said they thought housing prices would hold steady or increase over the next 12 months--which is up from 73 percent in January 2010. In fact, survey respondents expressed more confidence over the stability of home prices than they did about the overall strength of the economy. Sixty-one percent said the economy is heading on the wrong track.

Young Americans, Hispanics, and African-Americans were the most positive about their views on home ownership among the general population, according to the survey. Nearly 60 percent of Generation Y respondents (those between 18-34 years old) say that buying a home offers a lot of potential as an investment. Also, more than one-third of Hispanics and African Americans say they plan to buy a home within the next three years, compared to one in four of the general population.

"We are also seeing encouraging signs in the positive attitudes toward home ownership among younger Americans, despite the severe impact of the housing crisis on Generation Y," says Doug Duncan, Fannie Mae's chief economist. "But most respondents to our survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future."

Source: "Fannie Mae's Latest National Housing Survey Shows Key Changes in Americans' Attitudes Toward Housing and the Economy," RISMedia (March 1, 2011)

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5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the "mouth of chi" (chi is the "life force" of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It's also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It's even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

Source: Sell Your Home Faster With Feng Shui by Holly Ziegler (Dragon Chi Publications, 2001)

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How to Spot Mortgage Repair Fraud

As Las Vegas struggles to recover from our current economic challenges, many homeowners are still desperate for quick fixes, which makes them very vulnerable to mortgage repair fraud.

Generally, these scams take advantage of media coverage of federal programs, and they target those who are already struggling to pay their mortgage or are anxious to sell their homes. Being able to recognize the most common types of mortgage repair fraud can help you avoid becoming a victim.

1) Automatic Refunds - A company charges several thousand dollars for loan modification services. They do no work on the file but automatically send a refund check to consumer for a couple hundred dollars. They pocket the remaining money, saying they "tried" to get a loan mod but the bank rejected them. No one complains because the company "tried" and the consumer received a partial refund.

2) Double Escrows - A company tells the bank they have a short sale buyer at a low price in order to get appraisal. They don't tell anyone that they have a second buyer lined up to buy the house once the short sale goes through. They set up escrow and closing for the same day on both deals. Bank gets cheated on the original short sale since it is not legitimate, and the scammers make a profit on the second deal as well.

3) Principal Reductions - These are companies guaranteeing or advertising they can get you a principal reduction. Most lenders will not agree to a principal reduction, but scammers use this as an advertising ploy to get your money and your business.

4) Phantom Investor Purchase - This occurs when scammers falsely claim they have investors willing to purchase your house from the bank and then resell it back to you at a reduced mortgage. The investor pools usually do not exist, and the scammer is taking your money up front but not providing you any real assistance.

Remember, if it sounds too good to be true, it probably is. Don't be pressured into signing or paying. Don't believe anyone who tells you not to contact your lender or instructs you to pay them, instead of your lender. For legitimate, FREE help, call toll- free 877-448-4692 to get assistance from a HUD-approved, non-profit housing counselor.

If you think you've been a victim, there are several state and federal resources that can help:
City of Las Vegas Foreclosure Counseling and Complaint Website - https://www.stopnvforeclosures.org/
Southern Nevada Mortgage Fraud Hotline - (702) 584-5555
Nevada Attorney General's Bureau of Consumer Protection - http://ag.state.nv.us/org/bcp/bcp.htm
Nevada Division of Mortgage Lending - (702) 486-0780
Loan Modification Scam Prevention Network - http://www.preventloanscams.org/
For more information and resources about foreclosure prevention and loan modification assistance, go to www.foreclosurehelpnv.gov.
Source: Nevada Department of Business and Industry
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Tips for Finding the Perfect Neighborhood

Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home.

Is it close to your favorite spots? Make a list of the activities - movies, health club, church, etc. - you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you're considering to engage in your most common activities.

Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods you're considering. Also, check out www.schoolmatters.com.

Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type - such as burglaries or armed robberies - and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

Make personal observations. Once you've narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside.

Reprinted from REALTOR® magazine with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2008. All rights reserved.

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Email me at chris@lasvegasinvesting.com or call me at (702) 285-1363 for more information regarding the market.
Brought to you by...
Christopher C. Whittaker
Keller Williams Realty Las Veg
(702) 285-1363
My website here
My email: Chris@LasVegasInvesting.com

Foreclosure Classes for Homeowners

Nevada Legal Services will hold free monthly Foreclosure Information classes, available to any homeowner in Nevada. The classes will focus on the foreclosure process including mandatory mediation and the government sponsored loss mitigation options. All classes are held at the Nevada Legal Services office located at 530 S. Sixth Street in Las Vegas.
English
April 12 at 12 p.m.
May 10 at 12 p.m.

Spanish
March 17 at 2 p.m.
April 21 at 2 p.m.
May 19 at 2 p.m.
For more information please contact Nevada Legal Services, Lorena Mejia at 386-0404, ext. 511.

Sellers: 5 Questions to Ask When Reviewing an Offer

You made the decision to list your home with a REALTOR®. You worked hard to get the house in tip-top shape, the curb appeal shines, and you've priced it well. Some might say that's the easy part. When an offer comes in, your agent will review it with you. It's important that you read and understand all of its terms-not just the purchase price. Here are five things to keep in mind when reviewing offers to help you choose the one that's best for you:

1. What contingencies are involved? A contingency is something that has to happen before the contract is fully enforceable against the buyer and seller. If a contingency is not met, the party benefited by that contingency can walk away. Common examples include the buyer seeking a mortgage loan to purchase the home; selling the buyer's current home; conducting inspections; and in a short sale, approval of the seller's lender.

2. What's the bottom line? Can you afford to cover everything the buyer is asking for? Your agent can provide you with a "net sheet" that takes all of the financial terms - such as requests for closing costs and repairs - and calculates what the net proceeds will be, based on the offer price. This is especially important for owners who are short selling their homes.

3. What timeframes are involved? Be available for your agent to present offers. Every offer has an expiration date, and it's important to meet that expiration date or get an extension if you need more time to review the offer. When is the buyer proposing to close escrow? How long is the buyer asking for due diligence? The purchase agreement will have a "time is of the essence" clause, so it's important to pay attention to all contractual deadlines.

4. What is most important? This is a question that only you as the seller can answer. If maximizing proceeds is most important, you're more likely to stand firm on your financial terms, whereas if a quick closing date is most important, then you may be willing to compromise in other areas.

5. What are my options? The seller always has the right to accept, reject or counter every offer that's made on the property. Selling a home can be a very emotional time for a homeowner. It's important to stay flexible, look at it as the business transaction it is, and for each provision in the offer decide whether it's a deal breaker or if you'd be willing to compromise. Working through the offer with your agent, decide what course is best for you.

Don't trust this sale to just anyone. In 2010 I sold 31 homes in an average of 42 days on the market with an list price to sales price ratio of 99.08% (almost full list price). Who do you know that needs my help in this challenging market. I've got over 10 years of full time experience. Thanks for your business and referrals.

Write A NEW Story in 2011

2011-01-19T05:28:00.000-08:00

I want you to think for few minutes about where you were 6 months ago or 1 year ago, think about what you were doing every day, what the dialogue in your head was, what you told yourself you could or couldn't do on a regular basis. Now think about today. How has that dialogue created your current situation? I can tell you from personal experience that you have to be very careful about what you say every day all day about your life, and your business because it WILL show up in your world. Let me tell you about my personal experience and maybe you can relate.

I've always been a big believer in creating your future by controlling your thoughts. I just let it slip for about 4 months. Sometimes you forget the facts and the results can be terrible. It was the end of 2008 and I remember around Christmas saying to Dana, "we can't afford that!" and then a couple more times in the new year of 2009 I would say "that's impossible" or "there's no way that'll happen." Well, sure enough, POOF... I created what I said. We couldn't afford THAT, and it DIDN'T happen, etc. I didn't even realize what I was doing until I went for a long walk one day and started thinking and the great bolt of lightening called an "AH HA" struck me square in the forehead. I was doing all the things that I tell people not to do and I didn't even realize it. I quickly jogged home and started changing my "script" immediately. I wrote with fervor a new set of beliefs and goals and stopped saying those awful things to myself and my family. I stopped creating the limits in my life that I had unknowingly developed. Sure enough my income almost tripled in the second half of 2009 and has continued into 2011.

I share this because sometimes even the most dedicated, mindful, thought controlling person like myself, gets LAZY with the scripts in his head. If you're finding yourself saying these negative statements on a regular basis STOP IT! Stop limiting your future. Stop souring your relationships. Stop creating more debt!! It's not impossible, you can make a fortune THIS YEAR! Stop believing it won't come true for you, whatever it is you want in your life. You CAN have the girl of your dreams later in life after divorce, who wants to start a family and believes that life is your creation and you can have whatever you dream about... I did.

Step 1. Be aware of your conversation with yourself and your close inner circle. What do you say to them and yourself that's stomping on your dreams?
Step 2. Turn it around. Start saying I can, I will, I want, I need, I deserve... because you DO!
Step 3. Write it down, be descriptive, be a dreamer, don't limit your creative juices, cut out pictures, start by being grateful for the little things and go from there.
Step 4. Visualize. Make a movie in your head. One of the things I always do is visualize myself walking into my local U.S. Bank branch, endorsing the check and handing it to Sam the teller with a deposit slip. I visualize the amount on the check. I am making deposits on a frequent basis with different values. Create the pictures and that will show up in your life, I promise you.

Start today, it's critical. It's your life, you can change it if you want to just by changing your self talk and by visualizing a different future on a regular basis.

Check Out this house in Cabo !

2011-01-12T17:06:00.000-08:00

I get a lot of financial newsletters in the attempt to stay on top of the market (not just real estate). My favorite is John Mauldin's "Outside The Box." (send me an email and I'll send you the link). His most recent post about the baby boomers ended with this and it made me so jealous. Read first, then click the link for the 15,000 sq.ft. home on the beach in Cabo that they're staying at to do their annual planning and goal setting. Talk about inspiring...

John says, "Here in Cabo San Lucas we are staying at Casa Oliver (www.cabocasaoliver.com), which was recently featured in the Robb Report. The owner, Dene Oliver, is a very generous man who donates the use of his home to various charities, which is how Jon Sundt and his partners at Altegris secured the place, at a charity auction for an anti-drug organization sponsored by Jon.

"The whales are cavorting a little way off the beach . The kids are in the pool. The sun is setting over the Pacific. Jon Sundt and company have picked a great place for our annual meeting. A great place to kick back and reflect on the future, which seems to be coming at us ever faster.

"They are calling dinner, prepared by a serious world-class chef, Pia Quintana, so it’s time to go. Sushi night." Now click that link above and enjoy this special house, wow.

Modifications aren't working, come up with plan B

2011-01-11T15:24:00.000-08:00

So it's been a couple years since the powers that be declared they're "going to help save Millions of homeowners from foreclosure." How's that working out for you? Hmmm, not so good. A report I read the other day said something like 650 homeowners were helped with HAFA (nationwide, that's not a typo). HAMP is a little better with less than a million helped in the past 2.5 years. With as many as 7 million homes facing foreclosure or already taken (according to Zillow) this is a blip in the radar. About half of the 1.4 million temporary or trial modifications granted since the program's March 2009 inception have been canceled, according to Treasury Department data. Only 466,708 borrowers have received permanent modifications. Lender sources tell me about 65% of the permanently modified borrowers end up going into default anyways, so what is this doing to our housing market?
We see people dragged through the mud month after month, being put on hold for hours, getting hung up, paperwork lost, trial mods approved then denied a month later, frustration is reaching an all time high. People are fed up, tired of the games, trying to do the right thing and getting nothing in return. We have clients that paid an attorney $3000 for a modification, were told to stop making payments, and now they're days away from losing their home to foreclosure and the attorney isn't calling them back, SURPRISE SURPRISE. Here's the thing, I recommend to my clients that are upside down and facing a hardship to call their bank and start the modification paperwork, I NEVER recommend you miss payments (some people can't control their financial situation and missed payments aren't even an option- food on the table or mortgage payment), I always say DON'T pay for something that can't be guaranteed. I used to think an attorney had a better shot at getting the short sale approved because they have the fancy letterhead but that's just not true anymore. I'm seeing attorneys getting their broker's license and entering our arena and playing a double role of attorney AND real estate agent and that's scary from a litigation standpoint.

Get a second opinion and call me if you're in Southern Nevada. I'll give you straight no nonsense answers to your questions with the options you have. If you're considering a modification, call me first so we can discuss how to go about it and avoid missing those payments if you can afford it. We can help you see around corners.

The Warrior Steering the Yacht into 2011

2010-12-31T15:42:00.000-08:00

Dana and I are living a life by design, not by default. What that means is one of us is steering the boat, the other is making sure the sail is taut and pointing in the right direction. Together we are warriors in a rocky ocean moving to a direction we've chosen with a purpose of living our best life possible. What about you? The past decade is coming to an end, a new one begins soon, what will you do differently this decade that will create the results you want instead of things just happening to you?

I'm not a fortune teller but I'm fairly certain that the next decade will be no different from this past one. We will have stock market perils, we will have political storms, we will have natural disasters and we will experience losses. That's life. There is no blackboard in the sky that says life is meant to be rainbows and sunny days one right after the other. In fact, its more a series of challenges that you steer through, learn from and avoid the next time if possible. This past decade has been filled with highs and lows but to me, it's all good, even the bad. Every failure has been a stepping stone, every small tragedy has been a life lesson, we have created a circle of success around us over the years that we look forward to embracing.

I challenge you in the new year to point your boat in a certain direction rather than letting nature take its course. If it's up to someone else you will follow the current, floating towards a random land mass until a big wave picks you up and buries you on a rock. You must navigate the oceans, make difficult decisions, focus on a point somewhere in the distance and steer your vessel with a warrior mindset that says, "no matter what, no matter how, I'm getting this boat that contains my family, my memories, my life, my future to the best damn island possible. I'm not going to get scared by the weather, distracted by the obstacles, satiated by the easier route, no way, not this warrior, average isn't for me." That's the warrior mindset. That boat your steering is your life and it better not be a rowboat or canoe, it's a yacht and it's fantastic, all 80 feet of it, and you're going to protect it, treat it right and give it all the best things that life offers because you deserve it. Start now. Happy 2011 !

Life Skills = Business Skills

2010-12-21T16:59:00.000-08:00

2011 is days away. My wish for all of you is MORE. More abundance, more prosperity, more simple carefree moments with family and friends, more easy transactions, more money in your pocket, more friendly rapport with others, more dream-designing rather than scarcity thinking. Start now, start thinking as if you've got $5 Million in the bank and it'll never go away, what would you do differently? How would you act?

In most business classes (real estate included) the instruction is on how not to get sued, how to pass exams, how to cram for the big test, how to get by, get the grade, score the job. The unfortunate reality is that many are left with a degree and a high GPA but no life skill to carry over into the real world. The most important and necessary "soft skills" (the people skills) don't EVER get taught. If you Focus on improving these in 2011, your relationships will skyrocket along with your income and persuasive power with your family, clients and friends.

1. The Art of Listening: Do you interrupt? Do you try to control the conversation? Be intentional in the new year, ask more questions and stop talking so much.

2. Cell Phone Etiquette: Stop checking your phone so much in front of your clients. Be in the moment with them. It's not that important to answer the call in the middle of writing the offer, show them you care. Cell phone addiction is out of control, challenge yourself to show your respect to others when you're with them.

3. Show More Respect: People deserve to be treated with respect and they are now demanding it. Don't be late. Look people in the eye. Tell them the truth. Don't sugarcoat.

4. Authenticity: Being authentic is when you're not trying to impress others, nor are you acting like someone you're not. It makes people comfortable and they enjoy your presence.

5. Show Genuine Interest in Others: When was the last time a friend called you (without an agenda) just to find out how you're doing? Start showing others you care and you'll stand out.

6. Verbal Communication: Be friendly, clear, confident, concise, humble and positive when you speak to others, they'll want to be around you. Think before you speak in 2011.

7. Become More Responsible: Let 2011 be the year that you stop making excuses and start doing the things that are expected of you. Don't be late, return calls and emails, stop being lazy

8. Make Your Appearance an Asset: Taking pride in your appearance makes you look good, feel good and increases your influence with others. Step up your appearance in 2011.

9. Control Your Emotional Energy: Just because we're in a recession it doesn't mean you get a free pass to find fault with everything. Start focusing on positives and avoid the complainers who are dragging you down.

10. Your Email Brand: Every email you send makes a small impression on others. The accumulation of these impressions forms your brand. Improve your email brand in 2011.

These "soft skills" can be defined as the quality of a person's charisma. Start noticing how you interact with others and be conscious of your persona. 2011 is the year to make some changes that will impact your business but more importantly, your life, in some amazing ways. I must credit my coach, Michael Friedman of REIC (Real Estate Inner Circle) for introducing these in list format, though the skills are something I've worked on since the days of my youth when my Dad would practice a good firm handshake with me. Growing up with a father who was self employed I got to listen to his phone skills, negotiations, effort, persistence (home office, yet he put in a full day, every day). Have a fantastic holiday, take a deep breath, focus on good things in the new year, and take action to make it happen for you. You're in charge of this life, it's a great life if you lead it in the right direction with the right people surrounding you. I'm glad to be part of that group.

Happy Holidays and some burglar advice you can't ignore

2010-12-15T15:00:00.000-08:00

You may have seen this before but I thought it especially appropriate at this time of year since many of us will have workers in our homes fixing things to make sure our homes are ready for entertaining and there are presents that make our homes an even more attractive target for burglars. I think it has some really good ideas. I hope you have a happy and safe holiday season. Feel free to call me if I can be of any assistance to you or any of your friends.
Here are the tips:

THIRTEEN THINGS YOUR BURGLAR WON'T TELL YOU

1. Of course I look familiar. I was here just last week cleaning your
carpets, painting your shutters, or delivering your new refrigerator.

2. Hey, thanks for letting me use the bathroom when I was working in your
yard last week. While I was in there, I unlatched the back window to make
my return a little easier.

3. Love those flowers. That tells me you have taste... and taste means
there are nice things inside. Those yard toys your kids leave out always
make me wonder what type of gaming system they have.

4. Yes, I really do look for newspapers piled up on the driveway. And I
might leave a pizza flyer in your front door to see how long it takes you
to remove it..

5. If it snows while you're out of town, get a neighbor to create car and
foot tracks into the house. Virgin drifts in the driveway are a dead
giveaway.

6. If decorative glass is part of your front entrance, don't let your
alarm company install the control pad where I can see if it's set. That
makes it too easy.

7. A good security company alarms the window over the sink. And the
windows on the second floor, which often access the master bedroom - and
your jewelry. It's not a bad idea to put motion detectors up there too.

8. It's raining, you're fumbling with your umbrella, and you forget to
lock your door - understandable. But understand this: I don't take a day
off because of bad weather.

9. I always knock first. If you answer, I'll ask for directions somewhere
or offer to clean your gutters. (Don't take me up on it.)

10. Do you really think I won't look in your sock drawer? I always check
dresser drawers, the bedside table, and the medicine cabinet.

11. Here's a helpful hint: I almost never go into kids' rooms.

12. You're right: I won't have enough time to break into that safe where
you keep your valuables. But if it's not bolted down, I'll take it with
me.

13. A loud TV or radio can be a better deterrent than the best alarm
system. If you're reluctant to leave your TV on while you're out of town,
you can buy a $35 device that works on a timer and simulates the
flickering glow of a real television. (Find it at http://www.faketv.com/ )

8 MORE THINGS A BURGLAR WON'T TELL YOU:

1. Sometimes, I carry a clipboard. Sometimes, I dress like a lawn guy and
carry a rake. I do my best to never, ever look like a crook.

2. The two things I hate most: loud dogs and nosy neighbors.

3. I'll break a window to get in, even if it makes a little noise. If
your neighbor hears one loud sound, he'll stop what he's doing and wait
to hear it again... If he doesn't hear it again, he'll just go back to
what he was doing. It's human nature.

4. I'm not complaining, but why would you pay all that money for a fancy
alarm system and leave your house without setting it?

5. I love looking in your windows. I'm looking for signs that you're
home, and for flat screen TVs or gaming systems I'd like. I'll drive or
walk through your neighborhood at night, before you close the blinds,
just to pick my targets.

6. Avoid announcing your vacation on your Facebook page. It's easier than
you think to look up your address.

7. To you, leaving that window open just a crack during the day is a way
to let in a little fresh air. To me, it's an invitation.

8. If you don't answer when I knock, I try the door. Occasionally, I hit
the jackpot and walk right in.

Sources: Convicted burglars in North Carolina, Oregon, California, and
Kentucky ; security consultant Chris McGoey, who
runs http://www.crimedoctor.com/ and Richard T. Wright, a criminology professor at the
University of Missouri-St. Louis, who interviewed 105 burglars for his book Burglars on
the Job: Protection for you and your home:
If you don't have a gun, here's a more humane way to wreck someone's
evil plans for you. (I guess I can get rid of my nunchucks : )

WASP SPRAY
A girl who is a receptionist in a church in a high risk area was
concerned about someone coming into the office on Monday to rob them when
they were counting the collection. She asked the local police department
about using pepper spray and they recommended to her that she get a can
of wasp spray instead.

The wasp spray, they told her, can shoot up to twenty feet away and is a
lot more accurate, while with the pepper spray, they have to get too
close to you and could overpower you. The wasp spray temporarily blinds
an attacker until they get to the hospital for an antidote. She keeps a
can on her desk in the office and it doesn't attract attention from
people like a can of pepper spray would. She also keeps one nearby at
home for home protection... Thought this was interesting and might be of
use.

FROM ANOTHER SOURCE
On the heels of a break in and beating that left an elderly woman in
Toledo dead, self defense experts have a tip that could save your life.

Val Glinka teaches self-defense to students at Sylvania Southview High
School . For decades, he's suggested putting a can of wasp and hornet
spray near your door or bed.
Glinka says, "This is better than anything I can teach them."
Glinka considers it inexpensive, easy to find, and more effective than
mace or pepper spray. The cans typically shoot 20 to 30 feet; so if
someone tries to break into your home, Glinka says, "spray the culprit in
the eyes". It's a tip he's given to students for decades. It's also one
he wants everyone to hear. If you're looking for protection, Glinka says
look to the spray.
"That's going to give you a chance to call the police; maybe get out."
Maybe even save a life.

Put your car keys beside your bed at night

If you hear a noise outside your home or someone trying to get in your
house, just press the panic button for your car. The alarm will be set
off, and the horn will continue to sound until either you turn it off or
the car battery dies. This tip came from a neighborhood watch
coordinator. Next time you come home for the night and you start to put
your keys away, think of this: It's a security alarm system that you
probably already have and requires no installation. Test it. It will go
off from most everywhere inside your house and will keep honking until
your battery runs down or until you reset it with the button on the key
fob chain. It works if you park in your driveway or garage. If your car
alarm goes off when someone is trying to break into your house, odds are
the burglar/rapist won't stick around. After a few seconds all the
neighbors will be looking out their windows to see who is out there and
sure enough the criminal won't want that. And remember to carry your keys
while walking to your car in a parking lot. The alarm can work the same
way there. This is something that should really be shared with everyone.
Maybe it could save a life or a sexual abuse crime.

P.S. I am sending this to everyone I know because I think it is
fantastic. Would also be useful for any emergency, such as a heart
attack, where you can't reach a phone. A family member can activate the car alarm and then
you'll know there's a problem.

Here's a one page newsletter with market trends in Las Vegas and around the country. I've closed almost 40 transactions this year and have helped many homeowners get out from under their financial hardships and get on with their lives. I can help you and your friends and family. I've been doing this full time for 10 years and I have an assistant and short sale negotiator to help make this process as smooth and calm as can be.

http://chriswhittaker.housingtrendsenewsletter.com/
Have a great holiday and I hope 2011 is amazing for you!

November Market Condition Report for Las Vegas

2010-12-09T13:47:00.000-08:00

In order for the housing market in Las Vegas to recover, first the Las Vegas economy must recover. We had positive numbers for November where our unemployment went from 15% to 14.1%. This is partially due to hiring but also primarily due to people moving out of Las Vegas (Out Migration). Along with economic recovery comes job creation, and with job creation comes something we’ve been missing since 2008: POPULATION GROWTH! Clark County has actually lost population in the past two years. Combined with a larger average household size (people sharing living quarters), this has resulted in fewer household formations. All this has translated to lower demand for housing at a time when we already have excess inventory. Again, I'm seeing more and more families moving in together. I met a tenant this past Monday who had his mother in law, and sister's family moved in with their two kids and he's the only one employed. When people lose their homes, this stuff goes on. On a positive note, a fellow agent in San Diego said he just sold a house to a buyer who sold their home via short sale 13 months ago. At this time, if you're upside down and have a reason to sell, please consider a short sale instead of just letting the house go into foreclosure.

· The median sales price in Las Vegas is $113,000 (down 60% from 2006’s peak of $285,000)

· Our median price of $113,000 is equal to 1993’s median home price. If prices would have appreciated steadily at 2%-4% from 1993, we’d be at $167,000 (which is about the national resale home median price).

· 4,053 resale homes closed last month, 325 new homes closed

· Resale avg $/sf is $74, new is $104

· 2195 homes foreclosed last month

· 20% (849) of the 4053 resale closings were short sales, 37% were REOs, 30% were NON-DISTRESSED!

· We have 4.6 months of supply based on current absorption rates… under 3 is considered a “seller’s market”… we’re in a buyer’s market now.

· 15,789 available listings on the MLS… that’s A LOT.

*Data from Salestraq

Are you an amateur or professional?

2010-11-24T12:22:00.000-08:00

Whatever industry you work for whether an order taker or an entrepreneur, the way you show up matters. In this age of job loss and "under employment," the skills and work ethic you present may either move you up the ladder, get you fired, or present fresh opportunities you may not have encountered otherwise. How do you show up? Are you a professional or an amateur? Not sure? Continue reading...

"The War of Art" clearly defines the difference which I will share. Someone once asked Somerset Maugham if he wrote on a schedule or only when struck by inspiration. "I write only when inspiration strikes," he replied. "Fortunately it strikes every morning at nine o'clock sharp." That's a pro!

The amateur plays for fun. The professional plays for keeps.
To the amateur, the game is his avocation. To the pro it's his vocation.
The amateur plays part-time, the professional full-time.
The amateur is a weekend warrior. The professional is there seven days a week.

All of us are pros in one area: our jobs. We get a paycheck. We work for money. We are professionals.
So what exactly makes us professionals?
1. We show up every day! We don't just clock in and glaze over when we sit at our cubby, we show up and do our best.
2. We show up no matter what. Whether sick, family drama, traffic lights, whatever the reason, we show up.
3. We stay on the job all day. We might want to leave early but we stay. We pick up the phone when it rings, we help those who need us. We go home when the job is done.
4. We are committed over the long haul. We don't flip flop on a monthly basis. We take the job, do our best and make the most of it.
5. The stakes for us are high and real. This is about survival, feeding the family, educating our children. This is about eating folks, that simple.
6. We accept remuneration for our labor. We're not here for fun. We work for money and we're clear about that.
7. We do not over identify with our jobs. We take pride, we may stay late and come in on weekends, but we realize that we are not our job description. The amateur, on the other hand, over identifies himself by it. The amateur takes it so seriously it paralyzes him.
8. We master the technique of our jobs.
9. We have a sense of humor about our jobs.
10. We receive praise or blame in the real world.

Can you identify with these? I'm not talking about 1 or 2 of these, I'm talking about all 10 being the professional. In the second part of this blog I'll discuss some of the other characteristics of a professional. Remember, what you do for money has to be something you have passion for but it doesn't become something you put your whole life into.

Are you in a rut?

2010-11-22T16:18:00.000-08:00

Ever been in a rut before? When I hear the word rut I think of 4 wheel driving. It's one of those grooves in the mud that gets pretty deep in certain parts and steering is tough and getting out of them is even tougher. I went 4- wheeling years ago in my friend's 1974 Land Cruiser (essentially a tank on wheels) and we were heading down a steep muddy hill in Vermont and got caught in a deep rut that pulled us up the side of an embankment and we flipped onto the passenger's side (my side), we both had our seatbelts on, windows were rolled down and I had the common sense to pull my arm in. My friend and I laughed our butts off because we were in a serious jam as he was hanging right above me looking down at me and the hill we were laying on. We unstrapped, wiggled out the top and ran back to our friend's house where the party was and got some help. With the help of friends we pushed that big boy over and without a dent rolled down the hill (no longer in the rut). How does this relate to real estate you ask as you've read this far...

Let's see, can you see a rut coming? Yes. Can you take another path? Yes. Can you be conscious of the rut and work your way down the steep slippery slope and avoid the rut, absolutely. If you get stuck or if you tip over, how do you get out of it? Ask for help, get together with others, work really hard at fixing the situation, then get back in and keep going. So as you're thinking right now, if you're in a rut it's time to evaluate your options. Be aware of your environment, get out of the rut by steering away from the problem or you'll tip over. Fasten your seatbelts, be aware of who you're traveling with and steer down the hill carefully and strategically avoiding the rut, life is literally just like that. What was at the bottom of the hill you ask? A lush green meadow with wild flowers of all different colors and dry dirt roads that went on for miles. We were the only ones in this lush meadow. We were a little banged up, but had a great story and a great lesson learned. What does that meadow look like for you?

The Philosophy of Success

2010-11-13T17:49:00.000-08:00

While reading "The War of Art" which came highly recommended by Dave Jenks (philosopher and mentor extraordinaire) the idea of Ego and Self was brought up. This is towards the end of the book which really gets you thinking about the limits to success. Essentially the author (Stephen Pressfield) declares that "resistance" is what we must battle in order to achieve any sort of life worth living. This resistance rears its ugly head in the form of everything from procrastination to family drama to fear of success. It's a fascinating realization and one that we all encounter in our daily lives which limits the best in us.

Remember the philosophy classes of years ago? These were sort of boring to read, yet when discussed in depth or debated in the classroom, the results were quite interesting (at least to me). So my big "ah ha" at the very end of "The War of Art" was the discussion about ego and the self. Could it be that the small percent of business owners, investors and real estate agents that truly succeed long term are the ones who take the ego out of their business and thus the resistance? Can this all boil down to those who leave the ego at the gym (or similar release) get unlimited success if they take action? There's an interesting parallel between those who have no ego and those 20% who achieve 80% of the success, almost similar ratios. Just a thought. We've seen in the past few years, those who achieved a lot and lost it all had massive egos in many cases (developers in Las Vegas, investors who could do no wrong, agents w/ hummers and license plates that say "Bring It"). But that success wasn't long term as we've seen.

The F Bombs!

2010-10-26T20:45:00.000-07:00

The dirty word in today's world is Foreclosure. Man, who would have thought this would be a word I say at least 10 times a day. These bombs are going off all over Las Vegas; from Lake Las Vegas vacation condos to plush luxury custom homes. While my compassion lies with the homeowner, no doubt about it, the unfortunate truth is that any kind of moratorium will only delay the inevitable. The banks must process the paperwork correctly, absolutely, this is a tragic lapse in law and oversight and judgement and... you name it, yet there's still many homeowners who haven't made their payments. Let's sort this out quickly and get on with recovery. We will not rise from the ashes until this housing mess is regulated and cleaned up and jobs are created.
Sean O’Toole, CEO and Founder of ForeclosureRadar.com: "We regularly see lenders make minor mistakes in foreclosure filings but the reality is that far more homeowners are behind on their mortgage payments than are even in foreclosure. The clear problem in the housing market today is not foreclosures, but negative equity; and as long as the focus remains on the symptom rather than the disease we will see little progress towards real solutions and this crisis will drag on for years to come."

Las Vegas has seen 25,000 foreclosures each year in 2008, 2009, and will again in 2010. Median home prices (after dropping by 60%) have stabilized over the past 18 months now, ranging between $120,000 to $125,000. It’s ugly, it’s painful, and it’s slow, but we’ve been working our way through this. Why stop now with a moratorium? That will simply extend the recovery time. 80% of people who have a mortgage in Las Vegas are underwater. 16% are delinquent on their mortgage payments. Why are they delinquent? Some cannot make their payments due to job loss or reduced income. But many others simply don’t want to continue making mortgage payments on a house that is worth only half of what they owe on it. - Larry Murphy

How many people do you know who have stopped making their mortgage payments over a year ago, but are still living in their house? I know several, and I bet you do too. I know people that have tried to modify for over 400 days and get jerked around and finally give in to shortsales. I know many people who haven't made a payment in 18 months. Do I blame them, not at all, but any sort of delay in the paperwork would only prolong those people from starting their comeback. Banks are RELUCTANT to foreclose on as many properties as they could, because they FEAR it could result in further price drops. Listen up banks, don't tell me that you can sort out 2 million plus notes in 2 weeks when it takes you 6 months to process one short sale. Do it right this time and salvage what little faith the public has in you. Now here's some quick stats for the month of September in Las Vegas.

SEPTEMBER KEY STATISTICS:

Short Sales: 971 Average price: $124,900

Auction Sales: 507    Average price: $97,500
REO Sales: 1595    Average price: $117,000
Non-Distressed: 1227   Average Price: $124,000

New home median closing prices were boosted somewhat this month by 64 High & Midrise closings with a median price of $505,000.

Excluding Hi Rises the median new home price in Sept. was $201,326

KEY MLS LISTING STATISTICS:

55% Vacant; 11% Have Tenants

CURRENT SUPPLY: 4.4 MONTHS

Data from Larry Murphy via Kristina Black at Fidelity National Title

Why Sunday Football makes me money in real estate

2010-10-25T23:49:00.000-07:00

While my competition watches football, I plan and strategize. At least that's what I did for a few hours this past Sunday after 2 full days of challenges to our Agent Leadership Council (ALC) at Keller Williams. Mo Anderson challenged us on Friday with 3 things and we accepted the challenge. 1. Growth- attract the next generation of real estate agents, recruiting drives profitability as a market center AND with the opportunity of profit share. We must give our team leader at least 3 referrals a month. 2. Production- Myself first, then the market center. We commit to at least 2 hours of prospecting per day for the next 6 weeks (30 business days) in the office so others can see and hear how we help others and ask for business. This starts November 1st. 3. Profitability- Financial Management is critical so you can see if you have a profit. Every ALC member must have a profit and loss statement (P & L) by the end of the year.

Every recession creates a new group of power agents. Witness that group as it builds the momentum to take it through any obstacle. Together everyone achieves more. We are the role models for this market center. Let's show up in a big way and build our business while helping the market center and some of the newer agents at the same time. #1 goal of the ALC is that everyone on the ALC achieves their goal!
What's your goal number? What's your big why? Who's house is the first productive meeting of our ALC group so we can get these numbers and visuals on a board for everyone to see so everyone knows why we're doing this business?? Let's FOCUS and Hold each other accountable right now and throughout the new year.

Highlights for Las Vegas Real Estate Market - September 2010

2010-10-12T21:29:00.000-07:00

Highlights courtesy of Kristy Black at Fidelity National Title

The total number of Single Family Residential (SFR) units sold in September 2010 was 2,806. This is a -0.5% change from August 2010 closings, (only 13 fewer SFR units).

On a Year To Date (YTD) basis, SFR units now total 25,941 units closed. This is a decrease of 2,114 total SFR units over the same YTD period of 2009. but it remains significantly higher than both the 2007 and 2008 YTD SFR volumes of 12,458 and 17,525 SFR units sold, respectively. Reviewing the past 6 years of data, YTD - SFR sold units through September, the SFR volumes for 2010 are actually second only to last year in volume closed.

The Average SFR Sold Price was $169,825 for September 2010 which remains within the same narrow range that it has been at since mostly stabilizing in March 2009. The record "average" high of $428,817 for SFR was in June of 2007 which was followed by significant monthly price drops until March 2009, and has continue to fluctuate by only a few thousand dollars representing a 2.0 to 2.5 % fluctuation each month.

Total SFR dollar value of Sold SFR units for September was $476,528,134. This reflects only a slight +0.1% increase from August 2010, but it is a -15.5% decline from September of 2009.
Total YTD dollar values for the Jan through September period on sold SFR units now stands at $4,205,383,551.

Available SFR inventory at the end of August was 11,887 units (those without offers). This number is a +4.9% change from last month, but is a significant 50.3 % increase over the September 2009 count.

When the Contingent and Pending SFR units are added to this, the inventory stands at 22,719, a +0.4% increase over August 2010 and is a +9.2% increase against September of 2009.

FABLES AND FORTUNE HUNTERS

2010-09-29T15:24:00.000-07:00

This story from The Four Hour Workweek really makes you think about what's really important in life. What's your vision? Where would you like to be in 5 or 10 years? WHY NOT NOW? Read and decide for yourself, enjoy...

An American businessman took a vacation to a small coastal Mexican village on doctor's orders. Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisherman had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish.
"How long did it take you to catch them?" the American asked.
"Only a little while," the Mexican replied in surprisingly good English.
Why don't you stay out longer and catch more fish?" the American then asked.
"I have enough to support my family and give a few to friends," the Mexican said as he unloaded them into a basket.
"But...What do you do with the rest of your time?"
The Mexican looked up and smiled. "I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, senor."
The American laughed and stood tall. "Sir, I'm a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats."
He continued, "Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventually New York City, where you could run your expanding enterprise with proper management."
The Mexican Fisherman asked, "But senor, how long will all this take?"
To which the American replied, "15-20 years. 25 tops."
"But what then, senor?"
The American laughed and said, "That's the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions."
"Millions, senor? Then what?"
"Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos...."

Slow Dance

2010-09-29T15:10:00.000-07:00

In the process of doing my annual business plan for 2011 I came across The Four Hour Workweek by Timothy Ferriss. This book is amazing in the scope of information. The author makes Richard Branson seem like an amateur in lifestyle comparison. I wanted to share two parts of the book for you to really grab hold of. First is a poem by David L. Weatherford.

SLOW DANCE

Have you ever watched kids
On a merry-go-round?

Or listened to the rain
Slapping on the ground?

Ever followed a butterfly's erratic flight?
Or gazed at the sun into the fading night?

You better slow down.
Don't dance so fast.

Time is short.
The music won't last.

Do you run through each day
On the fly?

When you ask: How are you?
Do you hear the reply?

When the day is done,
do you lie in your bed

With the next hundred chores
Running through your head?

You'd better slow down.
Don't dance so fast.

Time is short.
The music won't last.

Ever told your child,
We'll do it tomorrow?

And in your haste,
Not see his sorrow?

Ever lost touch,
Let a good friendship die

Cause you never had time
To call and say, "Hi"?

You'd better slow down.
Don't dance so fast.

Time is short.
The music won't last.

When you run so fast to get somewhere
You miss half the fun of getting there.

When you worry and hurry through your day,
It is like an unopened gift thrown away.

Life is not a race.
Do take it slower.

Hear the music
Before the song is over.

Pretty important message isn't it?

Foreclosure Radar, market update.

2010-09-24T16:04:00.000-07:00

Perhaps the best word to describe the Las Vegas housing market in August is "stable." Sales and prices remained stable while resale inventory continued a modest increase. Permits, on the other hand, decreased for the second consecutive month, suggesting that homebuilders remain cautious about the future. In August, the break down of sales looked like this: http://www.foreclosureradar.com/nevada-foreclosures

SHORT SALES

907 units sold

$119,900 average sales price

AUCTION SALES

420 units sold

$101,200 average sales price

REO/REPO (bank owned listings for sale in the MLS by listing agents like myself) SALES

1673 units sold

$115,000 average sales price

NON-DISTRESSED (which include mostly "flipped" property and high rises)

1257 units sold
$129,500 average sales price

Note how close the price of a short-sale is to the price of an REO sale. It lends some credence to the idea that we are entering the second phase of the foreclosure crisis - a tragic phase in which those who have lost jobs are now losing higher priced homes in better neighborhoods. This is a significant product change from the first phase of the foreclosure crisis which featured lesser valued product such as condo-conversions. If that is a correct assumption, we could see upward pressure on pricing. However, that will likely not be seen for several more months. (Larry Murphy, SalesTraq).

I believe that the average sales price will still trend lower since it's mostly condition related. I'm seeing more properties with mold damage, water damage, and abuse by the prior occupant. I'm seeing more property selling for less than list price to cash buyers because of condition. If you haven't done so already, please click on this link and save this website for future use. It's a great resource:

Update on market conditions in Las Vegas

2010-09-02T16:11:00.000-07:00

Market conditions are changing slightly as we speak. As of today, September 2nd, 2010 we have 13,764 units for sale in the Las Vegas, North Las Vegas and Henderson areas. This is up quite a bit from late spring when we were down around 9000 units. 2788 of these available listings are bank owned (20%). We have 10,914 units contingent (under contract and either contingent on short sale approval (primarily), financing, inspections, bank signatures, and rarely selling a home to buy) this number is down from a high of 13000 units which means we're either selling these units or buyers are backing out, hard to say. In the past 30 days there were 3554 units sold in our market, which is 100 more than we sold in July but down 668 from what we sold in June of this year. There are currently 2407 units pending which just means that the deal is a little more solid, contingencies have been worked out and it's almost a certain close occurring.

I'm seeing fewer offers especially on property above $150,000. I think we'll have a nice uptick in activity now that families are back to school and settled. I think investors will be happy with the deals they're getting this quarter and next. I'm surprised at the percentage of bank owned being so low, but across the board we're hearing that short sales are quicker and easier than last year (still not a pleasant experience but worth the effort).

Private money source for Las Vegas loans

2010-08-18T13:21:00.000-07:00

I just wanted to remind you of an alternative loan for buyers if they cannot qualify for a Conventional, FHA or VA loan. I have a private money source here in Las Vegas that's been in existence for over 29 years. They will require a minimum of 35% down, interest rates are between 12% and 14%, generally takes approximately 2 weeks to close, no minimum FICO score, recent bankruptcies and foreclosures on credit are generally accepted. They can use alternative sources for income to qualify but borrower must prove ability to repay loan. Please call me with questions, this division has been extremely busy year to date and there is a demand for this product so please keep this in mind.

Making Tough Decisions Today

2010-08-16T10:44:00.000-07:00

I want to take a few minutes to reach out to any families that might need help but don't know how to ask for it. I find that as I make my phone calls and talk to people when I'm out in the neighborhoods, there's almost a paralysis when it comes to decision making. Many homeowners in our city are upside down (owe more than the house is worth) and they're confused. For some the "decision" is simple. I've sat across the table from couples who have no income, no job prospects, no savings. The decision is simple, put food on the table, cut all expenses, take care of your kids, get a job immediately.

Many people that I speak to now have fallen out of love with their home. The home was supposed to increase in value every year and create a dream future and it hasn't and probably won't so they are really disappointed, extremely frustrated, angry, and in disbelief. So let's go back to square one. A home is shelter, a place to raise your family, hopefully it's in a good school district. A home is not an investment. If you didn't buy a home, you're renting and paying some money to a landlord. It seems the only difference today between a renter and an owner is the owner still gets tax deductions. Both parties are spending money every month on shelter and none of that money is going towards an "investment." So again, square one, can you afford what you're paying every month? If you can, stay there. If you can't, move. There is no longer a stigma to being a tenant. Please get over it. Decisions need to be made, feelings might get hurt, choices are hard.

The 2nd option is to just sit there and let things happen to you. You ignore the phone calls, you don't open the mail, you don't answer the door, you get evicted, you can't find a place to live because you waited too long and you didn't save any money. Somebody will make those decisions for you but I guarantee you won't like the results.

I've sat across the table from families and the man is weeping because he feels like an utter failure. This was the dream home that was going to create the dream life and it's become a nightmare. Okay, guys, snap out of it, seriously. That's a lot of pressure on yourself. It's a house. Let me ask you this, what other "investments" have you bought recently that totally flopped? How's those 1st trust deeds? (bankrupt) How about that CD? How's your stock portfolio? Did someone tip you off that the housing market was going to crash this bad? I don't think so. Now would be a good time to stop feeling sorry for yourself and this nightmare that you think you created and start changing the course of events so this drama doesn't drag on for the next 3 years. Look around, grab a piece of paper and pen and start writing down all the things you're grateful for. Think long and hard and do this now. I'm grateful for... my wife, my kids, my two cars, my sight, fresh air, options, health. Trust me, there's a million people in worse shape than you and over 8 million unemployed and however number of millions in Pakistan alone without a home because it washed away. Seriously, it's a house. If this was going to be your path to millions, it didn't work out, find something else and do that!

I'm as sympathetic as the next guy, but I'm also solution oriented. I've been making decisions for myself for a long, long time (thank you Mom and Dad) and I've screwed up big time. It's the only way to REALLY LEARN. As long as nobody got injured, you ask yourself, "okay what did I do wrong, okay, how can I not do that again, what's the next step." Here's the reality. The housing market won't be turning around super quick and going up 20% or 30% a year anytime soon. If it turns around it'll probably be in about 3-5 years and it'll probably appreciate at the rate of inflation which historically has been about 3% a year. So if you don't want to make a decision and do something to change things, this problem will be around for a long time and won't get easier. My suggestion is to sit down with your significant other, possibly an attorney, your CPA and then me and have one of those discussions that is a little uncomfortable but critical to get your life rolling again. I'm here to help people so when you're ready for help please contact me.

Supply and demand starting to change

2010-08-05T12:10:00.000-07:00

We're now entering the tail end of summer. Traditionally this is our busiest time of year. Most families make a purchase decision based on getting their kids into school before the school year begins in September. Mixed in with families are investors and second homebuyers as well. We saw a massive demand in the 1st and most of 2nd quarter of this year as buyers scrambled to get escrows opened to qualify for the first time and 2nd homebuyer rebates. We are now seeing inventory creep up steadily. Right now we have 12,587 available condos, townhouses and single family homes in the Las Vegas, North Las Vegas and Henderson market, up from 9000 +/- a few months back. In the last 30 days we've closed 3,509 units, the month before that we closed 3886 units and the month before that it was 3827 so it's too early to call a trend but 377 fewer units is 10% less units closed in the last 30 days.

Right now our market is still 90% distressed properties with 70% of that being short sales and the remainder are REO (bank owned, real estate owned). The other 10% is traditional (seller with equity) and flipped properties (investor bought at auction (Nevada Legal News- everyday at 10am- you can subscribe for $150/month- must provide exact funds in cashiers checks), did rehab and sold through the MLS.

Bank owned inventory is picking up, yet of the 12,587 listings, only 2533 are bank owned. The demand for bank owned (if in good condition) is extremely strong and multiple offers almost always occur. We coach our buyer clients to be prepared for multiple offers so make your final, highest and best on the first try. Be prepared for 5-7 attempts before getting one accepted. That being said, the bank owned properties (if in good condition) still represent the best deal to investors and regular buyers alike.

20 answers to everyday questions...

2010-08-05T11:07:00.000-07:00

Got this from Mike Shannon, who's an REO (real estate owned) broker in the Detroit area and thought it was worth posting since I get these kinds of questions all the time on my listings. Questions from the buyer's agent, response from the listing agent.

1) Should I go show the house? (I don't know, do you want to sell it?)

2) I'm not sure if my buyer will like it, what do you think? (I don't know what your buyer likes, do you? - The general response to my question is "I'm not really sure")

3) How much will it cost to rehab the property? (I don't know, it depends on the quality of materials and the contractors your buyer would use)

4) Can I just send my buyer over to look at it, or do I have to go as well? (REALLY?)

5) (This is the reverse of question #4) I'm standing on the front porch and the lock box code my agent gave me isn't working. Can you tell me the correct code? (What's your agents name so I can file the complaint correctly)

6) Now when the selling commission says 3% or $1250, which one do I use? (What's the sale price, and which ever is higher)

7) Can you kill the current offer so I can get mine accepted? (Not unless the buyer breaches the existing offer constraints and the bank agrees)

8) It's not fair that you have multiple offers. (Why can't you just take mine? (If it was your house, is that what you would want to do?)

9) If I bring you a cash offer, can we close today? (hahahahahahahahahahahahahaa. No)

10) What does the status "Offer Panding" mean? (Really? It means that the seller has accepted another buyer's offer.)

11) So does that mean I can't write an offer? (Please do and we will hold it as a back up offer, should the current offer fail)

12) What do you think the utility bills will be in the future? (I have no idea. It depends on the size of the house, the furnace efficiency, how often the new buyer leaves the doors and windows open, do they have lots of electrical devices, etc)

13) I can't find a lockbox on the front door. Should I use the one on the side door? (Really? Yes, give a try)

14) How old is the roof, furnace, etc. (hahahahahahahahahaaha. I don't know, I didn't live there)

15) How do you get the lock box to open? (Where do I start with this one?)

16) If my buyer doesn't like the results of the private inspection, can we back out? (It depends on wording of your offer to purchase, or the banks addenda)

17) Why is the bank selling as-is? What's wrong with the house? (Please go show it, and you can decide)

18) If my buyer gives you $1,000, wwill you make sure their offer gets accepted? (Just write the offer and we will present it to the seller)

19) If I let you write the offer for my buyer and keep the all the commission, can you get it accepted? (Please, just write the offer and we will present it to the seller)

20) My buyer's going out of town for a month, will the seller delay the closing for free? (No)

If a buyer hires you to work for them, please do your job representing them. Don't cut corners. Don't take someone elses word as far as condition goes, go to the property yourself and check it out. Do the work!

2010-07-28T17:46:00.000-07:00

Hi friends, family, clients;

The KW Cares Concert coming to Vegas October 3rd has turned into a massive KW Cares Weekend and we would LOVE for all of you to be involved!
Here is a quick overview:
Saturday, October 2nd a golf tournament at BADLANDS! (foursomes have a big early bird discount till the end of next week-go to the website) I just bought a foursome. It's $500 and it includes lunch. Mulligans can be purchased if you play like I do : ) A portion is tax deductible. Do you or someone you know like to golf? This is one of the best courses in Las Vegas.
Saturday night is a poker tournament at 8 pm at the Hard Rock, sponsored by our MC and all proceeds will be donated. We'll have celebrity poker players. It's $100 buy in with 2 rebuys of $50 each possible.
Sunday, October 3rd is an over the top decadent chocolate and wine event with over 100 silent and live auction items, followed by the concert Gary Keller has so generously donated. Is there something you're willing to offer for the auction (services, spa, etc)? Will you come to the Death by Chocolate event? It's free! The concert information is on the website, the show does cost something but it's again tax deductible.
We have a limited number of rooms available at Red Rock Station! We've managed to get a HUGE discount plus the hotel is also donating 25% from any spa purchases to KW Cares. It’s a beautiful spa-ask my wife! We anticipate the $95 room rate to be gone by sometime next week so I encourage you to register now (Click on http://www.kwcaresweekend.com/ to get the rate or for more info)

If you would like to help us we would LOVE it! We are looking for Silent or Live Auction items. If you have something email donate@KWCaresWeekend.com and let us know!
Right now it would help us most if we could get golf foursomes booked and also hotel room confirmed. Go to http://www.kwcaresweekend.com/ to register for either.
It feels great to give back! I guarantee this will be a ton of fun for a great cause!
Please take at least 2 minutes and click on the link http://www.kwcaresweekend.com/ !
It is amazing how people have stepped forward to join us and give to this amazing cause!
Watch the website but please book your golf now and hotel if needed.

My thoughts as I go about my day in this crazy real estate business.

2010-07-20T19:15:00.000-07:00

On a regular basis I'm showing property to investors, handling evictions and cash for keys on foreclosed properties and putting bank owned properties on the market. The 4 main areas I've been doing most of my business this year is the Northwest, West, Summerlin and Southwest (zip codes 89131, 89129, 89117, 89135, 89141). About 50% of the homes I see with my investor buyers are trashed, the other 50% have new carpet, paint and some work done. The trashed homes are really bad but the prices are closer to the $50/sq.ft. mark. The homes that can be rented right away are closer to $70/sq.ft. and higher in Summerlin ($90-$100/sq.ft) and Southern Highlands ($75-$85/sq.ft).

Most of the homes that I go to when I represent the bank are occupied. The tenants that live there have no idea I'm coming, but they're almost glad I'm there. They know they'll make some money by agreeing to cash for keys and they're ready to move on to a new place with possibly some more stability (no concern that a guy like me will knock on their door). About 80% of the time there's more than one family living in the house. Usually it's a family and a room mate or something similar. In some instances I've spoken to the sole bread winner and he/she has 2 or 3 other couples living with them and they've either lost their job recently or they just starting missing payments. I can totally imagine a time in the near future when I knock on a door to say you've got two weeks to vacate because the bank owns this home and I'll be evicting 2 or 3 families. Right now they all seem to have places to go (move back with family or friends). My hope is the employment situation improves dramatically and quickly so the day doesn't come when I have people with no place to go. These are just my thoughts as I go about my day in this crazy real estate business.

Gotta Love This Lawyer -- Priceless!

2010-07-14T10:01:00.000-07:00

I got this e-mail this morning from Steven Pace who received it from Stephen Didier at Prudential. As an agent in this business I'm constantly floored by some of the questions I get from underwriting and it seems the trend is getting worse, almost to the point of not wanting to lend money and finding an excuse. Saw this joke and thought it was totally appropriate for this market.

Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client:

You have to love this lawyer........

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down After sending the information to the FHA, he received the following reply.

(Actual reply from FHA):

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."

Annoyed, the lawyer responded as follows:

(Actual response):
"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"

...The loan was immediately approved.

Recommendations and Testimonials

2010-06-22T16:26:00.000-07:00

Many of you know me and some of you have worked with me in the past. For those that don't know me, it's important to read what others think about me and the way I run my business. I think it adds a small layer of trust that can usually be built only with time. Here's some recent recommendations and testimonials from past clients, and colleagues for your review. Thank you.

“Chris is a hard working, honest real estate professional that will get the job done while maximizing value for his clients. Many people entered the market during the boom and did not conduct themselves with the highest standards. Chris is the exact opposite and that is why he has survived and is still thriving in a tough market. He can be trusted and will go the extra mile for everyone. If you need something done in the Las Vegas market, contact Chris to get the job done right.” E.W. -June 19, 2010

“Chris gave me invaluable and thorough insight on a property. His broad knowledge of structures as well as real estate transactions was very helpful.” T.B. -June 15, 2010

“Chris is a professional Realtor who has extensive knowledge and experience working with buyers and sellers in the Las Vegas real estate market, specializing in distressed properties. Chris is a leader in our real estate office; teaching other agents, providing coaching, and giving direction. He is a model Realtor.” P.B. -June 14, 2010

“I have had the pleasure of working with Chris, he is a true professional in every aspect of his business. He has a unending thirst for improving the industry in which he works, and is comes through in his dealing with his clients and his colleague's as well. From the moment you meet Chris you see in sincere interest in you as a person, I view it as a privilege to have the opportunity to work with him." A.V. -June 13, 2010

“Chris was my real agent agent when I was looking to purchase a condo for investment last year in the Las Vegas area. Chris was extremely helpful, very responsive, and very knowledgeable. Not only did Chris help me find the right property, he also helped me immensely throughout the process and even after the closing. I would strongly recommend Chris to anyone looking for a great real estate agent. I have worked with many agents over time and Chris is by far the best agent I have worked with.” R.P -June 13, 2010

“Chris Whittaker is a true professional. His strong ethics are evident in his dealing with clients and other agents alike. He is responsive and willing to lend a helping hand to anyone who needs it. On top of his excellent qualifications as a Realtor, he is also enjoyable to be around! His enthusiasm shows through in all he does!” J.M -June 11, 2010

“I would refer Chris to anyone with Real Estate needs. He is Knowledgeable, dependable and trustworthy. A true professional.” T.H. -June 10, 2010

“I have purchased three homes with Chris, he was always there and has since then been there to answer questions and provide advice. I have referred many others to Chris also. Good, hard-working, and honest, what you need in a real estate agent.” E.B. -June 10, 2010

“Too many choices and too much information can be overwhelming especially for first-time buyers. Any agent can provide you with raw data: listings, comparable sales, bedrooms, baths, etc. Chris's experience as an investor, entrepreneur and coach helps him provide the proper context to that information. Because, let's face it, you're not just after information for it's own sake...you're using the data to make an important financial and emotional decision. Chris has the knowledge and experience to help you get to the right decision.” B.K. -June 10, 2010

“Chris is unbelievably detail oriented and has impeccable follow through. I have known him for almost 5 years and he is one of the most professional brokers I have worked with." B.O. -June 10,2010

“I hired Chris as the broker for our real estate division at Investment Riches. He was exactly what we needed: forward thinking, motivated, self starter. Chris exceeded my expectations and contributed heavily to the strategy that guided our organization. He is very personable and as much fun to work with as he is chat with outside the work environment. I value my friendship with Chris and would recommend him and his team to anyone in need of real estate guidance.” T.M. -April 12, 2010

“Chris is one of those few and far between men, who does what he says he will do consistently, honestly, and fairly. He is what we call " A Compassionate Samurai " He cares deeply for people and sees all sides of business relationships and then acts with strength and humility combined. He lives his Principles. He is a leader in his industry, who takes smart calculated risk, when others are afraid to make a move. He lives the "Out of the Box" philosophy, expanding, learning, and growing in new areas consistently, rather than uselessly quoting it, as so many others do. He is a true pleasure to work with. Combined with his amazing wife Dana, they make a team that anyone, in any component of real estate, from Owner/ Brokers, to Agents, to Investors, to first time Clients, will benefit immensely from, in having him on your team. High Integrity, Produces Results, Pleasure to Work With, Highly Recomended” C.M. -May 6, 2009

“Chris is a dedicated real estate professional who truly embodies the essence of professionalism. I find him to be a intelligent, sincere and extremely likable person who has always conducted himself with integrity in all our dealings. I would highly recommend him as a real estate professional.” M.I. -March 13, 2009

“Chris is a deal maker. He is on top of what's going on in the markets, remembers names and numbers and is the best at putting people together. He is soft spoken, yet fierce in his ability to process information. I respect him more than just about anyone else out there, so I married him. Seriously, if Chris can't get a deal done, it can't be done.” D.W. -November 16, 2008

“Chris and I have worked together for over five years now. He is a great agent that understands all aspects of the real estate business. He is reliable and trustworthy and dedicated to his business. I would highly recommend working with Chris.” D.C. -November 6, 2008

The Las Vegas Trend

2010-06-17T18:00:00.000-07:00

My trend analysis (below) is based on what I'm seeing right now. The trend is in flux because of this tax credit frenzy and now with the extension of the closing date there should be a little turmoil for the next couple of weeks. I'm still getting multiple offers on all properties. Most under $150,000 (condos, townhouses) sell pretty quickly in Summerlin, Southwest, Silverado, Green Valley, and parts of the Northwest. Still a high demand for anything under $250k in the Summerlin area, under $250,000 in Green Valley, and under $150,000 in those other areas mentioned. You'll be competing with at least 3 others but the appraisals are a little unnerving since you never know where they'll come in at. Condition is slightly worse. Most of the bank owned homes have been vacant for a while and many had tenants so they're a little more beat up. Prices are steady, slightly more than before due to the abundance of cash offers (almost 50% of all transactions) a severe lack of inventory so the good properties go for slightly more than market value. Still a great market, but with fewer listings to look at. For investors I'm suggesting to wait until the cold months when fewer owner occupant buyers are looking. Not sure where rates will be.

Senate approves home tax credit extension

2010-06-16T17:18:00.000-07:00

This is really great news for the buyers who are in those nasty short sales and are worried about closing by the 30th. This will prevent the fallout ratio of up to 50% (was my guess) of buyers who wouldn't close on time and would just give up on buying and go back to renting. This isn't great news for landlords who were hoping the pool of tenants would increase after June 30th but have patience as the number of owners losing their home is steady. Article below compliments of AP.

By ANDREW TAYLOR (AP) – 2 hours ago
WASHINGTON — The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.

June Market Condition Report for Las Vegas

2010-06-07T17:26:00.000-07:00

The June MCR is for May transactions. Note that May 2010 demand is significantly less than May 2009 demand.

Median price,which had been holding in the mid $130's, has now begun to increase with three positive outcomes in a row. When the last four months are averaged (Feb‐May), the outcome is a very strong +$2,437. The decline in supply (listed) has come to halt and increased 546 units over last month, while demand (closed month) moved up 195 units. In Escrow properties (pending/contingent) fell for the first time in several months signaling increased movement of Short Sales out of escrow. The overall tight supply/demand situation should continue to place upward pressure on the price schedule. However, Standard prices (31% of demand) are weak at closing. The upper price ranges, while showing some activity, continue to suffer from lack of demand, especially those above $1 million.

REO (bank owned) monthly demand no longer exceeds REO supply pushing Months Supply outcome up to 1.2 (up from May). This is still incredibly low supply and is truly a seller's market (multiple offers, offers higher than list price, Days on market averaging 18). Buyer preference for this property type remains strong; however, signs of weakening continue. Market Speed is very fast (but slowing marginally), implying peak demand has been achieved. The REO segment of the market continues to slowly decline (at about 3% per month) with REO demand about 40% of the May 2009 outcome. Both supply and demand are somewhat volatile and unpredictable.

Short Sale supply declined slightly from last month but demand moved up a significant (222 units)- could be due to buyers needing to lock in a contract to get the tax credit. Market Speed is moderate but increasing. Percent Selling remains somewhat depressed but is moving up. Escrow inventory remains at high levels but appears to have peaked. In May of 2009, the percentage of Short Sale closings was 8%. In May of 2010, it climbed to 30%. The closing process remains inefficient and challenging, but improving. Prices are stable. Note very high levels of CDOM - continuous days on market (240 days average).Supply remains steady while demand increased 139 units. Closing price continues in decline (usually because by the time the home is in escrow and the bank is ready to work the deal, the value has declined slightly).

In May of 2009, the percentage of Standard closings was 15%. In May of 2010, it climbed to 31% and holding (remember flipped properties fall into this category). Market Speed continues to pick up as Standard demand is increasing at a faster rate than Standard supply. Note the relatively short CDOM when compared to Short Sales. The Standard class is benefiting from tight REO supply and demand and the problematical Short Sale closing process.

*I'm concerned about the June 30th cut off date for the tax credit (remember, buyers had to be under contract by April 30th, closing by June 30th). My instinct is that only half of those will close which will dump a whole bunch of frustrated buyers onto the market and they may go back to renting since the credit won't be available anymore.

Thanks to Nevada Title Company for the data!!

Bear Market Truth

2010-05-17T15:06:00.000-07:00

It's so hard to find the truth in this mixed message world. All the financial channels have one guy from the bear side, one guy from the bull side. The reporters argue one side (playing the devil's advocate) if there's only one professional to interview. As a consumer you'll hear mixed messages about housing all the time. One report will be from the new home builders, another from RealtyTrac and another from NAR (the National Association of Realtors which is almost always rosy). How is a person who works 9-5 supposed to know what to do? What do most people in America do when they can't figure things out themselves? Most just turn their money over to someone that they hope and pray knows what they're doing because they've been doing it a long time; or they sound like they know what they're doing; or they drive a nice car so they MUST be doing well... etc. etc. Bad decisions.
So do people who just hand their money to an advisor like that idea so that if their funds go down the toilet, they can blame someone else? Is that why you do that? I go on blog sites and read lots of articles with comments at the bottom from supposed "middle America" and there's a lot of anger out there. I was reading an article today about American West homes' new neighborhood in the Southwest and how Richard Lee was saying how the market will be turning around any day now and some of the comments were so juvenile. Most of the anger was towards real estate agents and how we're not "professional." Somehow we as agents were supposed to foresee this meltdown that occurred in 2008 and the virtual seizing of credit. Those who know me were seeing my comments from about the middle of 2007 about how the banks will be cutting off lines of credit and I can't even remember how many times I told potential sellers they better sell now because it's not going up (which I think they thought was a sales pitch). Anyways, I just want to remind "middle America" that I (and I can only speak for myself) never talked ANY buyers into buying. Buyers came to me during the "peak" and had their "friend" who was a lender get them into the crazy loan that adjusts upwards. Every first time buyer I worked with called their primary residence an "investment" which as you see in my first post is a mistake. Anything that takes money OUT of your pocket is NOT an investment. So let's talk about truth for a minute.

In my opinion, we are in a BEAR market (A bear market is a market in which a group of securities falls in price or loses value over a period of time. A prolonged bear market may result in a decrease in market prices by 20% or more. www.pcjinvest.com/tools/glossary/)
Yes, the stock market has recovered quite nicely from its lows last year (though not 100%- so still down), but that in itself does not justify the term bull market. A bear market also refers to social and political unrest and general pessimism. While a lot of our data points to recovery, I'm weary of where the data is coming from. As far as property in Las Vegas goes (since this is an investing website, not political) the truth is this. We have less inventory than we did last year, yet we still have quite a few notices of defaults so people are still having trouble making their payments. In May 2009 we had 8600 NOD's and in April of this year we had 6457 NOD's. So the trend is better, but this could be just an extension of defaults since the modifications more than 50% of the time result in defaults later down the line. We had 2672 Trustee's Deeds in April 2010 which is the higher than anything we had last year. Banks are taking these homes back. I think it's just a matter of time before that inventory comes on the market. If rates stay low like they are we can absorb this type of inventory. If rates increase we may be in for another double dip. Inflation says rates will go up, but my theory is that we're in a deflationary cycle which will drive prices down and scare consumers and thus the stock market will feel the effects of negative sentiment and extend this bear market for at least another 2 years.

New HAFA Short Sales Important Information

2010-04-08T09:51:00.000-07:00

On April 5th, 2010 The Home Affordable Foreclosure Alternatives program was born. Carolyn Kruse posts that this is in response to an outcry for Uncle Sam to step in and provide uniform procedures for helping homeowners stay in their homes. HAFA is part of the HAMP, Home Affordable Modification Program. This provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for a modification under HAMP.

HAFA:
* Complements HAMP and provides a viable alternative for borrowers who are HAMP eligible but unable to keep their homes.
*Uses borrowers financial and hardship info previously collected for a mod.
*Allows borrowers to receive a pre-approved short sale prior to listing.
*Requires borrowers to be fully released from future liability for the first mortgage ( no deficiency judgement is allowed). VERY IMPORTANT
*Uses set standard processes, documents and timeframe deadlines.
* Provides financial incentives: $1500 for borrower relocation assistance; $1000 for lender to cover admin and processing cost and up to $1000 for investors for allowing a total of up to $3000 in short sale proceeds to be distributed to subordinate lienholders.

The program began on April 5, 2010 and ends on December 31, 2012.

Are you ready?
Know who is eligible.
Do you know who is eligible for a Short Sale under the new federal regulations, HAFA?
Here are the basic eligibility requirements.
* The property HAS to be owner occupied.
*The mortgage loan is a first lien mortgage and originated on or before 1/1/2009.
*The mortgage is delinquent or default is reasonably forseeable.
*The current unpaid principal balance is equal to or less than $729,750.
*The borrower's total monthly mortgage payment exceeds 31% of his or her gross monthly income.

Wachovia is listed as one of the servicers who will participate in HAFA. You can find the complete list at www.makinghomeaffordable.com which is the list from HAMP. Remember that the lenders who are in the HAMP Program will be required to also participate in HAFA.

Also very important to remember that it doesn't matter who signed up for HAFA. The investors behind the bank will make the decision whether or not to participate. These are for non freddie and fannie loans only. For example you may have a wells fargo loan that is non freddie and fannie. At first glance you think it might qualify. Depending on the investor behind the servicer (Wells) will determine if it qualifies for the program.

Paul Benedict from Keller Williams Realty Las Vegas provided the following timely links regarding HAFA.
- Hubble Smith at the Las Vegas Review Journal wrote about it today (two of our very own agents are quoted!) : www.lvrj.com/business/government-s-short-sale-aid-implemented-89978022.html
- the HAFA Supplemental Directive (the all-inclusive HAFA document) revised 3/26/10 is here: https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
- the above document has been revised from previous versions, and the revisions are detailed here: https://www.hmpadmin.com/portal/docs/hafa/changetemplatesd0909r.pdf

Please feel free to contact me directly if you've got comments or if you know anyone who's thinking of short selling their home. I can be reached at: Chris@LasVegasInvesting.com Thank you.

Fearless Living in Las Vegas

2010-03-26T15:23:00.000-07:00

Unlike Hunter S. Thompson's epic Fear and Loathing in Las Vegas this was about becoming Fearless in our lives and in our business. The Facebook Fan page for these guys is right here. Dave Jenks, Laurie Hathorn and John Alexandrov kicked off their national tour in Las Vegas and discussed being Fearless about money, taking charge of our real estate businesses and Zen and the Art of Fearless Living. I want to highlight a few key points that may change the way you think about money, investing and being fearless in your daily life.

By being fearless we're not suggesting, "NO FEAR" with bumper stickers, t-shirts and extreme sports commercials. It is more about being courageous. As Dave suggested, "Courage is not the absence of fear; it is the PERSISTENCE in the face of fear. A coward dies a thousand deaths, the brave die but once." Action is where things happen. Doers and dreamers change the world. Life is about FAILING at the highest level.

Shakespeare said, "Our doubts are traitors to our dreams; and make us lose the good we might win, by fearing to attempt." Think about that. The way we were raised and our education system made us wrong by criticizing or grading us on our attempted effort if there was a mistake. This is not the way to be fearless. The best way to overcome fear is to get to an awareness that leads to change. Fear is sometimes a self fulfilling prophecy.

The "A"ngels of Fearless Living:
Awareness- Know thyself
Acceptance- You are a worthy human spirit (no self judgement)
Affirmation- You are gifted and unique
Achievement- You were designed to succeed. Life is about intention.
Accountability- Stay on-track and on purpose. Feedback without judgement. Tiny adjustments.
Actualization- Life is a process of emergence

One big AHA or BFO (blinding flash of obvious) was "When you're fearful of something, it probably means you were meant to do it." What is it that you're most afraid of? Go do it!

The Four Actions of Life
Dave Jenks had the AHA while in Sedona that these 4 actions are similar to what a baby does. This goes back to our nature before we "learned" anything that created some of our fears.
1. Breathe- do this consciously, call it meditation if you'd like, everything will be okay, just breathe.
2. Ask for what you NEED- babies do this don't they, they cry until we figure out what they need, I'm not suggesting you cry but if you really NEED something, ask for it.
3. Use what you are given- what can you do, what skills do you have, tap into that.
4. Connect with Love- Love is letting go.

The Four Agreements
Be Impeccable with your word.
Don't take anything personally
Don't make assumptions
Always do your best!

Are you feeling lighter already??????????????????????

The Four Commitments
Count your blessings
Affirm your uniqueness
Use your power to choose
Go another mile.

You cannot make a mistake. You can only grow and learn. Fear is the enemy. Leave it behind.

Are you committed to doing what it takes to succeed?
"There is a difference between interest and commitment. When you're interested in doing something, you do it only when it's convenient. When you're committed to something you accept no excuses, only results." -Ken Blanchard
Ask yourself: am I "interested" or am I "committed?"

Freedom + Flexibility without discipline = BANKRUPTCY
Your primary mission as a business owner is to be profitable. Your income should be at least 3 times higher than your expenses per month. Be aware of where your money goes every month and make a conscious effort to get your costs down.
Drop the language of "I already know it all." That's your EGO talking, and you'll get in trouble with that kind of thinking.

8 Success Principles of Top Producers (in any business)
- Keep your promises.
- Be a CEO
- Focus on income-producing activities.
- Follow a schedule
- Profitability is critically important.
- Scripts and dialogues work.
- Be coached or mentored.
- Be open, watch your EGO

It's 2010 and in my opinion, there will be lots of change in our world. We'll look back on the past 20 years as the "good old days." Much like the 1920's were the "roaring 20's." There's a ton of fear out there, we see and hear it everyday. It's critical that everyone bands together, stop worrying about making a mistake, do what you love to do, cut your costs and focus on profit not just sales. Those who are open to new ideas, those who read, study, improve and take action will create a future much better than what they may have had in the past. Now is the perfect time for new opportunities. Be Fearless.

Ideas for Real Estate Agents AND Everyone Else.

2010-03-26T14:32:00.000-07:00

Last month I had the pleasure of attending the annual international Keller Williams convention in New Orleans. The "JOY is back" in that city. What a blast we all had including dinners at Irean's, http://www.nola.com/dining/ Palace Cafe, and our favorite was Arnaud's. These were all in the French Quarter. If you haven't made a trip to the Big Easy, consider it this spring or fall.

Our days were long but the time flew by as we were overwhelmed with high quality speakers, motivators, teachers and practitioners who were so active and successful in their business it started rubbing off on all of us. Here's some of what I took away from this trip which you can implement in your life and your business, even if it's not real estate.

1. Tell yourself something positive everyday, like "No Limits! No Regrets." Consider it a motto to live by.
2. We all need a very clear mission and vision to guide us through life.
3. Have a clear focus on the KEY relationships that surround us.
4. Live the healthiest life we can.
5. Be brave enough to bet your life on an issue.
6. Commit to the path of self- mastery in ONE chosen area.
7. You can't have it ALL at once, but you can incrementally.
8. FOCUS on the 20% that matters.
9. Move from scattered in all directions to PURPOSEFUL.
10. Make being learning based the foundation of your actions.
11. Remove your limiting beliefs.
12. Plan your trips first, say "I'm going to be successful so I can afford it." Work in between your time off.
13. Read Maxwell's, "21 Laws of Leadership" and implement one law a month.
14. It takes 10,000 hours to master something (5-10 years). Focus on that one thing, master it and move on to the next. In your lifetime you'll be lucky to be known for one thing.
15. Don't be the jack of all trades, master of none. DECIDE NOW what you want to master and DO it.
16. We're not in this business, this life, to have a great life in our HEAD. Get on with it. Do you have the habits that lead to the life you want to have?
17. Workaholic has NOTHING to do with success.
18. Set high goals/promises and make sure your plan is bigger than your goals.
19. Surround yourself with higher level people, no one succeeds ALONE. Coaching helps.
20. ACTION doesn't care what kind of behavior you have.
21. It's possible to build a business around caring for others.

I hope you find one or two of these eye opening, I sure did. One of the big takeaways I got was the analogy of the two men racing from point a to point b. One man has a huge boulder, the other small boulders scattered along the race course. The man with the big boulder slowly, steadily, gets that boulder to the finish line, turns around and picks up another. The man with the scattered rocks has to stop, readjust, get a bag to put the rocks in, drops a few along the way and barely makes it to the finish line. The rocks and boulders symbolize mastering. You can pick up little things along the way and maybe make it to the end. If you focus on mastering one thing, it'll be slow, but you'll get there and you'll have time for more and more, and your life will be so much more rewarding and memorable.

Low inventory + Low interest rates and high buyer demand = High market activity

2010-03-18T11:13:00.000-07:00

According to data obtained from the Greater Las Vegas Association of Realtors (GLVAR), the number of available listings posted in the (MLS) fell below 11,000 units for the first time since July 2005.

Availability continues to be dominated by vacant and tenant-occupied properties with owner-occupied properties accounting for 35.4 percent of listings.
The number of contingent units, or properties that have been contracted but are contingent on certain conditions, reached its highest level in history. Approximately 12,100 homes are classified as contingent, with 78.5 percent of those homes subject to a short sale.

Properties already owned by banks account for 13.1 percent of contingent units while only 8.4 percent of contingencies are traditional transactions that don’t require a lender’s approval.

Inventory Summary:
Current: 10,949

One Year Ago: 20,697

Annual Decline: 9,748
or 47.1%
Low inventory + Low interest rates and high buyer demand = High market activity and prices at list or above

March Las Vegas Market Update

2010-03-08T15:59:00.000-08:00

Available inventory (supply): 8449 units, Closed inventory (demand): 2708 In escrow: 11,569
Inventory is about a 3.4 month supply based on February's closing but as we saw in Nov. and Dec. of 2009 it's not unusual to close over 4400 units in a month. January and February are just typically slower months. Large number of escrow properties is characteristic of shortsales and the length of time it takes to close those types of homes.

REO monthly demand continues to exceed REO supply maintaining a Months Supply outcome of .9 (holding steady from February) and Percent Selling of 87%. Buyer preference for this type of property is clear and the competition amongst buyers is keen with multiple offers the norm.

Market Speed is very fast (and holding in the current range) signaling quick conversion from listing to closing. Note heavy activity in the EAST and the corresponding price schedule. The REO segment of the market is slowly declining as supply continues to tighten from month to month. Short Sale supply (47% of supply) exceeds Short Sale demand (21% of demand) by a factor of 6.7 (see Months Supply). Months Supply is

holding in the current range implying resolved inventory is being replaced by new supply. Market Speed is slow (holding) and Percent Selling depressed, while escrow inventory remains at high levels and is increasing. CDOM is elevated when compared to REO/Standard. These factors continue to support anecdotal reports of an inefficient closing process. Prices are weak with that trend likely to continue.
Standard supply (37% of supply) exceeds Standard demand (21% of demand) by a factor of 5.4 (see Months Supply).

Overall, prices appear to have stabilized in the short run. Notice the elevated Months Supply outcome for Boulder City relative to other areas. There is little demand for Boulder City property at current prices offered by sellers. Notice the demand schedule for the East. Interesting is that North REO converts to
closing 6 times faster than North Standard. Note the difference in the price schedules. Prices tentative but firming.

If you'd like graphs courtesy of Nevada Title, please e-mail me at: Chris@LasVegasInvesting.com and I'd be happy to e-mail you right away.

Where have all the leaders gone?

2010-02-10T10:52:00.000-08:00

Where have all the leaders gone?

Just as true today as it was when his book first came out.....
Lee Iacocca was, and still is, a brilliant businessman!....
Often we need to be reminded of Iacocca's words.....

Remember Lee Iacocca, the man who rescued Chrysler Corporation from its death throes? He's now 82 years old and has a new book, 'Where Have All The Leaders Gone?'.
Lee Iacocca Says:

'Am I the only guy in this country who's fed up with what's happening? Where the hell is our outrage with this so called president? We should be screaming bloody murder! We've got a gang of tax cheating clueless leftists trying to steer our ship of state right over a cliff, we've got corporate gangsters stealing us blind, and we can't even run a ridiculous cash-for-clunkers program without losing $26 billion of the taxpayers' money, much less build a hybrid car. But instead of getting mad, everyone sits around and nods their heads when the politicians say, 'trust me the economy is getting better..'

Better? You've got to be kidding. This is America , not the damned, 'Titanic'. I'll give you a sound bite: 'Throw all the Democrats out along with Obama!'

You might think I'm getting senile, that I've gone off my rocker, and maybe I have. But someone has to speak up. I hardly recognize this country anymore..

The most famous business leaders are not the innovators but the guys in handcuffs.. While we're fiddling in Afghanistan , Iran is completing their nuclear bombs and missiles and nobody seems to know what to do. And the liberal press is waving 'pom-poms' instead of asking hard questions. That's not the promise of the ' America ' my parents and yours traveled across the ocean for. I've had enough. How about you?

I'll go a step further. You can't call yourself a patriot if you're not outraged. This is a fight I'm ready and willing to have. The Biggest 'C' is Crisis! (Iacocca elaborates on nine C's of leadership, with crisis being the first.)

Leaders are made, not born. Leadership is forged in times of crisis. It's easy to sit there with thumb up your butt and talk theory. Or send someone else's kids off to war when you've never seen a battlefield yourself. It's another thing to lead when your world comes tumbling down.

On September 11, 2001, we needed a strong leader more than any other time in our history. We needed a steady hand to guide us out of the ashes. A hell of a mess, so here's where we stand.

We're immersed in a bloody war now with no plan for winning and no plan for leaving. But our soldiers are dying daily.

We're running the biggest deficit in the history of the world, and it's getting worse every day!

We've lost the manufacturing edge to Asia , while our once-great companies are getting slaughtered by health care costs.

Gas prices are going to skyrocket again, and nobody in power has a lucid plan to open drilling to solve the problem. This country has the largest oil reserves in the WORLD, and we cannot drill for it because the politicians have been bought by the flea-hugging environmentalists. ....

Our schools are in a complete disaster because of the teachers union.

Our borders are like sieves and they want to give all illegals amnesty and free healthcare.

The middle class is being squeezed to death every day.

These are times that cry out for leadership.
But when you look around, you've got to ask: 'Where have all the leaders gone?' Where are the curious, creative communicators? Where are the people of character, courage, conviction, omnipotence, and common sense? I may be a sucker for alliteration, but I think you get the point.

Name me a leader who has a better idea for homeland security than making us take off our shoes in airports and throw away our shampoo?
We've spent billions of dollars building a huge new bureaucracy, and all we know how to do is react to things that have already happened.
Everyone's hunkering down, fingers crossed, hoping the government will make it better for them. Now, that's just crazy.. Deal with life. ....

Name me an industry leader who is thinking creatively about how we can restore our competitive edge in manufacturing. Who would have believed that there could ever be a time when 'The Big Three' referred to Japanese car companies? How did this happen, and more important, look what Obama did about it!....

Name me a government leader who can articulate a plan for paying down the debit, or solving the energy crisis, or managing the health care problem. The silence is deafening. But these are the crises that are eating away at our country and milking the middle class dry.

I have news for the Chicago gangsters in Congress. We didn't elect you to turn this country into a losing European Socialist state. What is everybody so afraid of? That some bonehead on NBC or CNN news will call them a name? Give me a break. Why don't you guys show some spine for a change?

Had Enough? Hey, I'm not trying to be the voice of gloom and doom here. I'm trying to light a fire. I'm speaking out because I have hope - I believe in America . In my lifetime, I've had the privilege of living through some of America 's greatest moments. I've also experienced some of our worst crises: The 'Great Depression,' 'World War II,' the 'Korean War,' the 'Kennedy Assassination,' the 'Vietnam War,' the 1970's oil crisis, and the struggles of recent years since 9/11.

I may not agree with everything the man says but you've got to love his conviction. That comes from many decades of decision making when things weren't easy. Sometimes you have to make hard decisions that will be better in the long run but the short term pain will be really difficult. What I'm seeing is a lot of band aids and patch jobs to "fix" things temporarily but the long term pain will be so horrible. That needs to change or this life that you and I enjoy as middle class citizens will be entirely different.

Does this math make sense?

2010-02-09T14:53:00.000-08:00

I had an inspection the other day on a bank owned condo for a client of mine that buys 2 or 3 every year (up to now with financing, but starting in 2008 just cash) for the past 6 years. During the inspection (which I highly recommend) we found some minor issues. The condo needs a new water heater, stove, garbage disposal, new front door, duct cleaning, electrical work, fireplace doors, microwave oven : ) ... and a STEAL at $41,050 which rents for $650/month (HOA $176, taxes $50, mgmt. $65) = possible cash flow w/ cash purchase of-> $359/month x 12 = $4308/yr in gross income (almost 10% return on investment annually before repairs and cost of sales). Could you set aside that $4308 in a property account that over time could add up to enough to buy another condo? Does it take time? Yes! Is it hard to do? Not at all. Can I help you? I'd be happy to!

Las Vegas Highrise update

2010-02-08T18:25:00.000-08:00

"In Business Las Vegas" reports the following High - rise condo stats, by Union Gaming as of Feb.1, 2010.

- Allure- 190 of 427 units unsold; 40 in default; 10 bank owned.
- Juhl- 309 of 344 unsold.
- Newport Lofts- 23 of 168 unsold; 51 in default, 12 bank owned.
- One Queensridge Place- 85 of 219 unsold; 8 in default.
- Panorama Tower 3- 334 of 372 unsold.
- Sky Las Vegas- 79 of 405 unsold; 50 in default; 5 bank owned.
- Streamline Tower- 248 of 275 unsold.
- Turnberry Towers West- 255 of 318 unsold.
- MGM Signature 3- 84 of 576 unsold; 105 in default; 17 bank owned.

December 2009 - 5 year comparison available.

2010-01-18T09:34:00.000-08:00

The data is out for the past 5 years. I have charts and graphs if you're interested in that kind of data.

Volumes: December posted SFR (single family residential) sales volume of 3,420 units, which is a 9.7% increase over November's volume of 3,117. It is a 36.9% increase of December of 2008.

The total 2009 SFR sales volume was 38,127 units. This is a 53% increase in total volume from 2008's sold units of 24,924 and almost a 150% increase over 2007's SFR volume of 15,279. In fact, 2009 is the singular highest year for the five years of data that I have accumulated.

Prices: December's average sales price for SFR $163,384. This was down from November's average price of $167,178 by 2.3%. However, since June of this past year, the SFR Average Sales Price has fluctuated in a very narrow range between $163,384 and $167,911. This is only a 2.7% variance for the past 7 months, and is a huge difference from the rapid falling of prices for 2008, which plummeted from $307,739 to $204,312.

If you'd like the charts and graphs e-mail me at: chris@LasVegasInvesting.com and I'd be happy to send them. Thanks.

Foreclosure Mediation Update

2010-01-05T12:03:00.000-08:00

As some of you know, the Nevada Foreclosure Mediation Program began on July 1 (2009) and since then nearly 3300 homeowners who received notices of default have requested mediation as they want to stay in their homes.

When a homeowner receives a Notice of Default they have 30 days from the day they received their notice to seek mediation under this new program. Mediations are expected to be concluded within 90 days of the notices of defaults being recorded. There is a $200 charge to the homeonwer that gets paid for the ability to go to mediation.

Here's the results of the Mediation Program:
Notices of Defaults filed in NV as of July 1, 2009: 32,662 (these include commercial and non-owner-occupied properties that aren't eligible for the mediation program.
Requests for Mediation as of Dec. 4, 2009: 3,272
Mediations conducted: 522
Mediations scheduled: 1,064
(source: The Nevada Supreme Court, http://www.nevadajudiciary.us/)

What do these numbers tell you? Even if the mediation program didn't get going until September (allowing 2 months to hire mediators and get the program rolling) that's 3 full months of mediations w/ only 522 conducted. Assume 20 working days a month that's only 8.7 mediations a day. Can you sense the near impossibility with the backlog of NOD's and the amount of requests? Another example of an idea set into motion without a whole lot of thought.

2009: A Year of Declining Inventory and Increasing Lender Involvement

2010-01-04T09:58:00.000-08:00

Happy New Year, amazing results at year end compared to how the year began.

December 2008: 23,014 units available in Las Vegas

December 2009: 11,359 units available in Las Vegas

Annual Decline: 11,655

During the past year, the number of available listings fell by one half, while the count of properties under contract nearly tripled. By year-end, availability reached 11,359 units, which was well below the 23,014 properties listed when the year began. Movement was primarily sourced to a reduction in the number of vacant properties listed for sale, which witnessed a decline from nearly 14,600 homes to 6,300 during the past 12 months.

The count of vacant properties listed as available was impacted by bank-owned properties (REOs). At the beginning of the year, Realtors identified nearly 8,200 units as bank-owned, which represented 35.4 percent of total inventory; by the close of 2009, the number of REOs listed as available dipped to 2,246, or 19.8 percent of availability. The total number of REOs remains much higher than the nearly 5,900 listed as available, contingent or pending. Properties held by banks at year-end is estimated at approximately 12,000, while another 7,000 units remain in the foreclosure process, suggesting vacant inventory levels have the potential to remain somewhat volatile in the near term.

With vacant properties accounting for nearly 71 percent of the inventory reduction, owner-occupied inventory contributed 23 percent of the decline, while tenant-occupied properties accounted for nearly 6 percent of the market-wide drop. The aggregate decline is sourced to several factors, including, but not limited to, increased demand (sales and contracting activity), home sellers opting to wait for price improvements before listing their properties and an escalation in the number of home sales pending bank approval (short sales).

Analysis courtesy of Applied Analysis (a Las Vegas Company)

Distressed Properties Remain Elevated

2009-12-16T14:03:00.001-08:00

The number of homes listed as available declined modestly during the past week, reaching total inventory of 11,339. The count of listings represents a 33-unit drop from preceding week, and a 50.8-percent decline (-11,694 homes) from the same week of the prior year. The bulk of the decline (68.6 percent) was attributable to the lower number of vacant properties listed for sale.
During the latest reporting period, the count of homes listed as "contingent" remained above 11,000 units (many of these are short sales which stay contingent for anywhere from 3-9 months), with the majority (75.6 percent or nearly 8,400 units) noted as short sales. For comparison purposes, a more modest 20.8 percent of properties classified as pending (or expected to close) are short sales.

Additionally, during the past 90 days, only 15.7 percent of closings were successful short sales.

5 year charts on Single Family sales in Las Vegas

2009-12-08T11:31:00.000-08:00

I have the 5 year charts of SFR (single family residential) Sales Volume and 5 year tracking of SFR average sales price by month here in Las Vegas/ Henderson, NV, as of November 2009. E-mail me if you want them: info@300sold.com.

Year to date sales volume is now at 34,707 on SFR, the highest annual volume in the past 5 years, even surpassing the 2004 total year volume of 33,529 with December sales yet to be added in. The November 2009 volume is a 42.8% increase over November of 2008.

Average Price has held steady for the past several months, and November closed out with an average sales price of $167,178, a 1.5% increase over October, but a 28% decrease over November of 2008.

The Total dollar value for units sold in November 2009 is $521,094,077 and this is an increase of 2.8% over November of 2008.

If you add in condo sales, we had 4600 sales last month and 4500 sales in October. Both months are records. Feel free to ask me any questions. I've also posted 11 trends for 2011 at my blog www.LasVegasInvesting.com . Hope everybody is having a great holiday so far.

11 Startling Forecasts for 2010

2009-12-07T17:17:00.000-08:00

I'm an avid reader of http://www.moneyandmarkets.com/ and Martin D. Weiss, Ph.D who predicted the housing bust and recession that started in 2007. They recently collected their experts and assembled a pretty complete analysis of where we as a country are headed and where the best places to invest are in 2010. I thought it would be appropriate to summarize those 11 forecasts and add bullet points and opinion.

1. The Federal Reserve will not relent in its money printing madness until it's absolutely forced to do so.
It's what they told us they'd do, it's what they're doing, and it's what they'll continue to do.We've had 120 bank failures from the beginning of 2009 through mid November, the most since the S&L crisis in the 1980's. I don't see that stopping or slowing down in 2010 either, especially with the commercial loan defaults that are coming.

2. The continuing, virtually unstoppable long term decline in the dollar.
Yes, we'll have rallies. After each rally, the dollar will resume its long term decline. Buy currency ETFs that strictly invest in foreign currencies themselves. In my opinion we're going to be in a deflationary spiral for at least another year so the lack of buying power won't feel as painful because prices of items are coming down since demand is lower.

3. The entire concept of "RISK" will be REDEFINED by global investors. The new definition will be: HOLDING U.S. dollars and dollar- denominated assets.
Not only will there be a dumping of U.S. dollars, but in some cases the assets attached to them (stock) and a frenzy to buy replacements like gold, silver, real estate.

4. Gold will reach $1,500 if not higher as central banks help drive up its price with massive new buying of their own.
China is actively buying gold as is India. The rise to $1,500 won't be straight, there will be a dip, possibly below $1000. That would be a great time to buy in. Buy GLD (Gold ETF). Gold mining stocks like Barrick (ABX).

5. The overwhelming majority of oil producing nations will demand that the U.S. dollar be replaced as the pricing standard for crude oil.
Looking at cycles, the price of oil will move into a new, higher and broader trading range - $110 on the high end and $70 on the low end. Weak demand from the U.S. won't allow another breakout high. Buy Master Limited Partnerships like Energy Transfer Partners (symbol ETP) with great yields.

6. The U.S. economic recovery of 2010 will go down in history as one of the weakest and shortest in 100 years.
Never forget that there are currently 27.4 million unemployed in the U.S. Never forget that banks are clamping down on credit cards and that one in five homeowners has lost all their equity and are upside down on their mortgages. No job, no credit, no home equity to tap and add in rising energy bills and you'll see VERY slow growth in our economy. No home equity will also play out in low auto sales, low sales in furniture and electronics, less vacation spending, less taxes coming into the state, which all equal more cutbacks and higher unemployment.

7. The economies of Brazil, China and India will grow up to four times faster than the U.S.
They just don't have the same problems as we do in America. They don't rely on credit, they don't have the issues with mortgages and foreclosures, they don't have outrageous unemployment. Growth here will be staggering.

8. Stocks in countries like China, India and Brazil will rise up to three, four, even FIVE times faster than the S&P 500.
China's $586 Billion stimulus plan is working. Unlike the U.S. which used trillions to buy out worthless sub-prime debt, China spent their stimulus on highways, airports, dams, utilities, bridges, shipping ports and more. This foundation will keep the Chinese economy humming for years to come. This is not just about one year or even one decade. We are in the first few years of one of the most powerful mega-cycles in the history of civilization. The power shift from West TO East. In 2009, S&P has risen by 21 percent, China 75 percent, India 79 percent, Brazil 139 Percent. Remember, volatility to the upside creates volatility to the downside. Personally concerned that there is a bubble in Chinese real estate based on recent land sales prices, they may be able to survive and prosper longer, but the bubble will pop eventually.

9. The best performing stock markets in 2010 will include Indonesia, Thailand and Vietnam.
Oil, natural resources, real estate, stocks. Indonesia withdrew from OPEC (which stands for Organization of Petroleum exporting countries) since they were so efficient at using the oil they produce, why be a part of an organization that exports?

10. Sovereign wealth funds of Asia will become far more aggressive buyers of contra-dollar assets in 2010, helping to drive up their values at a much faster clip than generally expected, especially in Asia.
The top ten Sovereign Wealth Funds in the world have nearly $3 Trillion in capital. More than 80 percent of that originates from the Middle East and Asia. More than 70% of that capital is going into natural resources which is contral-dollar. Follow the big money in these markets.

11. Expect a MASSIVE new global boom in mergers and acquisitions, focusing on small and mid-cap natural resource stocks.

Most agree this stock market will rally higher in the next 3 to 6 months but by at least the middle of 2010 expect a 50% retracement since the true fundamentals of the economy are not strong. Be careful if you're thinking of getting in right now since this is near a top. Suggest buying gold if it breaks below $1000. Save 6 months to 1 year of expenses. Some money in cash. ETFs not mutual funds. Trade not invest for the long term unfortunately. Good luck to all of you in the new year.

Short Sales Streamlined in the Future

2009-12-04T11:18:00.000-08:00

Looks like there's incentive to doing a short sale now. Among other things, Treasury will pay $1000 to servicers and up to $1500 for borrowers to relocate (not sure how that works out but that's what they said). Also, they're pressuring servicers by giving them 10 days to decide if they will approve or disapprove the short sale request. They're also saying that if the short sale is approved, the borrower must be fully released from the debt. The article is below. Time will decide if what is said, actually occurs.

NEW YORK (Reuters) The U.S. Treasury on Monday set long-awaited guidance

on a plan for mortgage companies to speed short sales of homes and other

loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives

and simplifies the procedures for completing short sales, a growing practice

in which a lender agrees to accept the sale price of a home to pay off a

mortgage even if the price falls short of the amount owed, according to an

announcement on the Treasury's website.

Guidelines address barriers that have often sidelined short sales by setting

limits on the time it takes a bank to approve an offer, freeing borrowers

from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government's Home Affordable

Modification Program, known as HAMP, that has seen limited success in lowering

payments for distressed homeowners. The Treasury earlier on Monday stepped

up pressure on mortgage companies to make permanent the 650,000 trial modifications

they have started.

While HAMP program guidelines are intended to reach a broad range of at-risk

borrowers, it is expected that servicers will encounter situations where

they are unable to approve or offer a modification, the Treasury said in

its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions

in which the deed is simply transferred to the lender include a $1,000

payment to servicers, and a maximum of $1,000 to go to investors who sign

off on payments to subordinate lien holders, the Treasury said. Borrowers

would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure

because they can preserve the borrower's credit rating and leave the property

in better condition than when a homeowner is evicted. While primary lenders

typically realize steep losses, their recovery is typically far better than

under foreclosure.

But short sales have been frustrating for borrowers and real estate agents,

often hung up by negotiations with multiple lien holders and mortgage insurance

companies. Real estate agents have complained that sales fall through as

lenders bicker over the sales price, what they should receive from the proceeds,

and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove

a request for short sale, and when done the transaction must fully release

the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate

commissions on the sale, a practice that has dissuaded many agents from taking

short sale listings.

In one of the most contentious issues gumming up negotiations between lenders,

the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from

the first lender, seller, buyer or agent in exchange for releasing their

claim, agents have said. Because primary lenders would face larger losses

in a foreclosure, some subordinate lenders have felt empowered, the agents

said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co,

JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury

program, if they felt the cap was too low, a Treasury official said in October.

If there was a short sale program that didn't recognize the second lien

holder position, it could have pretty damaging consequences for the industry,

Sanjiv Das, chief executive officer of CitiMortgage, said in an interview

last week.

11/09 Market Update Las Vegas

2009-11-06T10:13:00.000-08:00

Available Listings Approach 11,000

During the past week, the number of properties listed as available dipped by another 175 units, bringing the total inventory to 11,184 homes. Compared to the same week of the prior year, listings are down 11,641 properties, or 51.0 percent. Availability continued to slant toward vacant and tenant occupied properties, while owner-occupied listings represented a modest 35.1 percent of total inventory.

As previously reported, the number of distressed properties continues to remain elevated. Approximately 60 percent of all homes listed as available are distressed, meaning they are either subject to a short sale situation or are already owned by a bank. Properties considered under contract that are contingent upon some action taking place reported an even higher share of distress with 72 percent subject to lender approval on a short sale.

Of the 11,200 units noted as contingent, another 20 percent are already bank owned, suggesting only 8 percent of contingent homes do not have a lender involved with authorizing the sale.

Over 81 percent of pending sales, those most likely to close as planned, are distressed properties. It is also worth noting the aggregate number of available and contracted units declined by 633 homes during the past week reaching 25,988 units.

Data courtesy of Applied Analysis, a Las Vegas firm.

Unemployment & tax credit update

2009-11-06T10:07:00.000-08:00

The results are in. The Labor Department reported today that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were widely expected. And as we have been forecasting, the number that has been all over the media this morning is the Unemployment Rate rising to 10.2% - quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983. While this number is bad, what is even more concerning is the “real” unemployment rate being closer to 17.5%. This includes those who have not searched for a job for at least four weeks, known as "discouraged or detached" workers, as well as those desiring full time work but having to settle for part time, the "underemployed".

The Average Workweek came in at a record low of 33 hours, which highlights the present slow economic demand and underscores the fact mentioned above, that many people are working part-time, but would prefer full time work. Another consideration for the low work week could be productivity gains as well, discussed in yesterday’s Daily Update. The only ray of sunshine within this anemic report were the upward revisions for August and September, showing 91,000 fewer jobs lost than previously reported.

Let’s remember, in order to just keep up with population growth – or to keep the ranks of the unemployed from rising – there must be 125,000 jobs created each month. So the latest report of 190,000 jobs lost, really means we have fallen behind by 315,000 jobs, just last month. As we expected, the kneejerk reaction for Bonds would be higher – which it was – until resistance was hit, and price have since settled down. Its tough for a rally in Bonds to sustain itself with the Fed purchases now being rationed, even in the face of a very bad jobs number. The Federal Reserve purchased $16B in Mortgage Backed Securities in the latest week, bringing the year-to-data total to roughly $993B. For October there were on average $17.5B purchased each week, down from $25B per week in August.

The Homebuyers Tax Credit jumped its last hurdle yesterday, as the both the House and the Senate have passed the bill and it now awaits President Obama’s signature, expected today or tomorrow. And while we have been expecting this to happen for some time and have given you many details, let’s go over them one more time. For First Time Homebuyers or those who have not owned a home within 3 years, the tax credit remains at $4000 for singles and $8000 for couples, with income restrictions maxing out at $125,000 and $225,000 respectively. Current homeowners – those defined as having owned a home for five of the previous eight years – can now also take advantage of a credit, with slightly lesser amounts of $3250 for singles and $6500 for couples, with the income restrictions the same as described above. To qualify for the new program, purchase agreements need to be signed by April 30th and close by June 30th. For those in our armed forces, persons stationed outside the United States on official duty for 90 days during the period from January 1st 2009 and before May 1st 2010 will have eligibility extended for binding contracts signed before May 1st, 2011 and closed before July 1st, 2011.

Taken from the Mortgage Market Guide.

Stability is an Illusion

2009-11-02T15:34:00.000-08:00

The illiterate of the future will not be the person who cannot read. It will be the person who does not know how to learn. -Alvin Toffler
Everyday I'm learning. Whether it's by talking to people in the workplace, in the field, or by reading. It's a new century, a new era in learning and socializing. We must figure out how to keep up with this pace of information and knowledge. Did you realize that by reading 10 pages a day you can get through 12-16 books in a year? How much will that help you tomorrow? Probably not very much, but by this time next year, you will be surprised at what you know.

I'm in the middle of two great books as I'm writing this. The first is by Seth Godin "Tribes." The other book I'm rereading called "Prophecy" by Robert Kiyosaki. Pretty interesting paradox isn't it. Bear with me because there are some unusual parallels that I want to point out.

Both books have a chapter dedicated to discussions on the future. Both agree the future will be vastly different. It has to be. With technology and social networking taking off, the things we've been doing for the last 70 years will definitely change. Mr. Kiyosaki attended a conference by Dr. Buckminster Fuller back in 1981. At the time, Dr. Fuller was considered one of the world's leading futurists. The discussion turned to "ephemeralization" which is the process of starting small, growing bigger, becoming too big, then small again, suddenly disappearing or becoming invisible. He states, "On occasion, the end of growth is marked by a disaster as is the case of the "Titanic" (marking the end of the golden age of ships)." Robert Kiyosaki then goes on to discuss the events of 9/11. Could the airplanes flying into the world trade center have marked the end of airline travel? What about the end of skyscrapers? "Had giant skyscrapers, symbols of the Industrial Age, suddenly become dinosaurs? Had big business become too big? Did the attack on the Pentagon represent the end of American economic and military leadership? What comes next?"

That book was written in 2002. We could certainly discuss at length some of these ideas. I am definitely not trying to make light of the events of September 11th, just trying to see around corners. The premise of "Prophecy" is that there will be the biggest stock market crash in history and how you can prepare yourself and profit from it. Point is, if you don't read this book, you won't know what he's talking about. I will summarize it for you. We haven't seen anything yet. Why? The laws changed in 1974 and the average American is now responsible for saving and investing for his retirement. It used to be that one would get a good education, go to work for 40 years and retire with a defined benefit pension that would satisfy his/her needs for eternity. Those days are over. Now everyone is responsible for their own future. What happens in 2012 when the baby boomers start mandatory withdrawals from their 401(k) plans? What happens when more money is coming out than going in? Don't just take for granted that there will be money for you when you get older. You must start educating yourself and preparing for the future.

Seth Godin discusses "the Factory," as "...an organization that cranks out product or a service, does it with measurable output, and tries to reduce costs as it goes... any job where your boss tells you what to do and how to do it." Aren't we seeing that in the future those businesses will be in other countries? Yet our schools are teaching students to seek out these types of jobs? Haven't we seen in the 3rd qtr earnings reports that companies can actually improve year over year, just by cutting costs (jobs)? The only other way to cut costs is by producing in a cheaper country. Don't think this won't happen. The only way the government will be able to make money is by either printing more of it, or by increasing taxes. This new economy will see the majority of "factory" jobs shipped overseas just as a cost cutting measure. How are you going to prepare for that? How will you make money betting on that to happen?

Godin says, "In the old model, things happened to you at work. Factories opened, people were hired. Bosses gave instructions. You got transferred. There were layoffs. You got promoted. Factories closed. Leaders on the other hand, don't have things happen to them. They do things." In the middle of this crisis, what are you doing to lead?

Since the laws changed and you're now responsible for your future, as an investor what are you going to do?
Kiyosaki suggests 8 things that you need to be on the lookout for:
1. Keep your word. We're entering the age of integrity. Your thoughts, your words and your actions all need to match. If you do that, the future is yours.
2. Keep an open mind and tuned ears for change.
3. Learn to read financial statements. Don't just take the word of some advisor. Learn about the company you're investing in. Stay away from the big mutual fund companies.
4. Use technology. There are programs that allow you to trade stocks or options like only the giant firms used to have. The individual has just as much power as the large company.
5. Watch for bigness. Today with advances in technology, the life expectancy of a company is much shorter. As soon as something becomes too big, they are about to decline and be replaced.
6. Watch for changes in the laws. There will be a lot of changes coming up, all an attempt to control what has become out of control. Social Security is a big mess, keep an eye on how they try to solve this issue.
7. Watch out for inflation. (My words: Though we're currently in a deflationary spiral for at least another year) the long term effect of all this printed money may lead to inflation which means the U.S. dollar goes down in value. Things of value, assets such as real estate, gold, silver and utility stocks may greatly increase in value. When inflation goes up, the government often counters it by raising interest rates. When interest rates go up, stock markets usually come down. If we enter a period of high inflation and high interest rates, people counting on their pension plans and mutual funds may find themselves in serious financial trouble.
8. Pay close attention to government's handling of its social programs. Government is pushing the problems of social security, medicare and medicaid forward onto future generations. Sometime around 2016 all this pushing is about to come to a head. Pay close attention. If governments begin raising taxes excessively, be prepared for anything, and be prepared to act quickly. Today, money can literally move at the speed of light. States are over budget and spend more than their revenues (they learn well from their parents, the federal government). As the baby boomers get older their need for medical care will increase and they won't be able to afford it themselves.

I hear a lot of people say they hate their job but they stay there because it's safe. Is it really safe? I'm not suggesting you jump ship, give up all those "benefits," and start working for yourself. My suggestion is to start by reading, get educated on how to take care of your own finances, prepare for what is most likely going to happen so that when it does you aren't blindsided and left clinging to the job that you hate because it's all you have. We all need to work hard to maintain that stability that we're craving, whether it's a job, a relationship, your investment portfolio, or your future. Sitting back and watching will only create the disappointment you've been trying to avoid.

This is what the Las Vegas housing market has come to.

2009-10-14T17:43:00.000-07:00

I had to pass this along, since this is really what our Las Vegas housing market has come to. Yes, there is less than 3 months worth of inventory, but statistically there is less than 1 months supply of single family homes that aren't short sales.

Lunacy in Las Vegas Housing

Published: Wednesday, 14 Oct 2009
11:15 AM ET
By: Diana Olick
CNBC Real Estate Reporter
AP
--------------------------------------------------------------------------------
Just when you think you've heard it all in today's housing market, along comes a story that takes all those statistics and all those monthly foreclosure reports and all that testimony to Congress and just drop kicks them all out the window.

I'm going to tell you about a nice young woman named Katie. Last week Katie tried to buy a house in Las Vegas, and got a lesson in real estate reality that she will never forget.

Let's back up a bit for some background. Katie and her husband live in Maryland and are about to have their first child. Both work, but Katie's husband, who has a very solid government job, is being transferred to Vegas. And please note, the government is paying all his moving expenses, including Realtor and closing costs. Both he and Katie have credit scores right around 800.

So off the two went to Vegas, thinking they were in the right place at the right time.

The foreclosure capital of America, Vegas home prices are down more than 50 percent from their peak in 2006. The median price of a home there is $138,000, but, interestingly, the inventory is down to a less than 3-month supply. Compare that to the national inventory, now at an 8.5 month supply. Despite the low supply, prices are not recovering quickly because the sales are all by banks, looking to unload properties quickly.

But back to Katie. Her Realtor, who is also an old friend, emailed Katie the following warnings before her arrival on the Vegas strip:

- This market is crazy and many things are just not going to make any sense.
- I can guarantee you 99.99% of the listings emailed to you will no longer be available by the time you get here.
- Properties are selling in the blink of an eye.
- Properties are getting multiple offers within a few days of being on the market, the most offers I’ve heard a house had recently was 44 offers (I know, crazy).
- This market is crazy and many things are just not going to make any sense.
- 40% of all transactions are cash purchases, which makes it harder for the buyers who are financing to get their offers accepted.
- We have 1/2 the inventory we had a year ago and 4 times as many buyers as we did a year ago.
- Chances are we will have to submit several offers to have the chance of getting 1 accepted.
- This market is crazy and many things are just not going to make any sense.
- You will probably leave not knowing if you have a house or not because banks take 2 to 3 weeks to respond, because this market is crazy… you know the rest.

I'm guessing you noted the crazy part. Katie is looking in the $150-200,000 price range. Despite the warnings, Katie was completely unprepared for what she found. In seven days, she saw 50 homes. All but one were foreclosures.

On the first day, Katie and her husband saw 13 homes.

Only three were anywhere close to move-in condition, despite the fact that all of the homes were built in 2005 or later. All were foreclosed properties. "People find out a year before they're ever kicked out, so what do they do for that year?" says Katie. "Completely destroy their homes."

I know we've already heard about this, as had Katie, but the destruction was even beyond her expectations. "There's no cleaning that would help." There was dirt rubbed on the walls, graffiti, holes in the walls and garbage deposited inside the holes. The smell? "I couldn't get past it." Obviously there was no hardware on the doors and no appliances, kitchen cabinets, stovetops...whatever could go went. 75 percent of the homes she went into were an instant no.

But here's the crazy part:

"We went to a home that had been on the market for one day, and the key was stolen out of the lock box. Our Realtor said immediately, 'You want this home.' She told us another Realtor had stolen the key because they wanted their client to get it. So what did my Realtor do? She broke in. And sure enough this was the home we fell in love with. It was on for $132,000 so we decided to be really aggressive and offered $160,000, plus we had government backing on our loan. Well our Realtor called that night and said, 'You're not going to get the home. They got 30 offers and half are cash offers, so the bank is not even going to look at you.' The banks just want the cash to unload these places."

Finally, on day 7 of looking, and after having 7 offers ignored by the banks (who owned all the homes), the Realtor called Katie with "a gold mine." Yes, an owner-occupied, regular home. A rare non-foreclosure. They went immediately and put in an offer. The owner claims to like them, but she ended up with 10 offers and is still mulling.

Ironically, in a market still flooding with new foreclosed properties every day, at the end of their week Katie and her husband met with a local builder. "We know our money will not get us as much, but they're giving away the granite and hardwoods for free." It's not in their ideal location, and they wouldn't be able to move in until March, the month their first baby is due. But at least they don't have to deal with the banks, the filth and the competition.

Oh, and by the way, a fun factoid on Katie's Realtor: She bought her brand new home in 2005 for $240,000. According to the comps she runs daily, she says it's now worth between $90-110,000. So in January she decided to stop paying her mortgage. No financial hardship, she just figured she was throwing money away. The bank hasn't gotten to her yet, so she's just been living there for free. At some point, she knows, her bank will foreclose, but she's fine with that. She says she'll do far better financially renting for a while.

This is what the housing market has come to.

Part 2: Your Primary Residence is NOT an Asset

2009-10-09T16:46:00.000-07:00

With all that (my prior post) being said, the road to lasting wealth is paved through real estate. Here's what I mean. While your primary residence isn't really an asset in the sense of "investment" it is an asset as far as commodities and inflation go. Historically real estate has appreciated 3% annually based on the inflation figures and averages. When you're locked in a 30 year fixed mortgage, your payment remains the same over the course of time. The only adjustments you'll need to consider in the future is possible property tax increases and homeowners association assessments. If you're renting then you can expect your rent to increase 3% annually over the life of your stay at the property, plus you can't control what your landlord's financial situation may be. If you have the funds and you've saved for the downpayment, you must consider buying a primary residence first, but you have got to stay within your budget. With this current recession and unemployment figures almost 10% (true figures over 16%), you must have a years worth of expenses set aside as an emergency fund and you must still be able to fund your retirement. Your primary residence should be considered a place to call home; to improve over time; to create memories for your family, but not as a place to cash out and retire in style. After all you will always need a place to live and you certainly don't want to move back in with Mom and Dad when you're in your 50's and your "investment" didn't work out.

If your situation is that the rent on the house or apartment you live in is less than what the mortgage would be (considering all the tax benefits), then by all means stay there. Renting allows for flexibility if you have a job or family that is constantly changing. Your reason for buying shouldn't be because you're fearful of missing out on the appreciation. Again, it's not an investment, it's your home. Your decisions need to be logical, not spontaneous when it comes to spending that kind of money.

The last thing we have to keep in mind is liquidity. Real estate is very often tough to sell. You have to find the right buyer, loan, appraiser, real estate agent and price point. It all has to come together, and it does take time. If your gameplan is that you need something to appreciate so you can pull money out to pay for college in 2 years or because you're retiring in 5 years, real estate is probably not the best place to park your hard earned money. Please keep that in mind when you're thinking about making this your business.

If you've got time, some money, a little bit of patience, and an "eyes wide open" approach, the best way to become a millionaire is to buy a million dollars worth of real estate and let the tenants pay it off for you. It'll take 15-30 years, and it'll take some strategy and management (like any business), but you control it, you won't get laid off, downsized, and in a normal market with that timeframe in mind you will become very successful with this sure thing.

Condo loans, important links

2009-10-07T09:38:00.000-07:00

I speak to a lot of investors who want to enter the condo investment arena. They see the prices and rent equation and think "this is a no brainer." On the surface it makes perfect sense. Buy a condo in Las Vegas with 2 bedrooms, pay $50,000. Put down 20% ($10,000) and have a note for $40,000. The payment on $40,000 is approximately $280/month including taxes and insurance. The HOA is no more than $200/month and your management fee of 10% of rents of $800 is $80/month. Total monthly cashflow using a scenerio like this and not setting aside any reserves for repairs or vacancy is $240/month.

The difficulty unfortunately isn't with the scenerio, it's with the reality of this market and how difficult it is to obtain financing on any condos in our city. Not to mention the competition is so fierce you'll most likely get beaten out by a cash offer anyways. Here's what you need to know about condos in this market.

Conventional loan: No more than 15% of the owners can be delinquent in their HOA Dues and the owner occupancy percentage must be over 60%. No pending litigation and the lender must still approve the complex.

FHA and VA loans: Must be on the FHA approved Condo list (see FHA link below) AND the requirements listed on the approval page must be met. No pending litigation.

Canadians purchasing a condo in Las Vegas: No more than 5% of the owners can be delinquent in their HOA Dues and the owner occupancy percentage must be over 70%. No pending litigation.

IMPORTANT LINKS

FHA http://portal.hud.gov/portal/page?_pageid=73,1&_dad=portal&_schema=PORTAL

FHA Mortgage Limits https://entp.hud.gov/idapp/html/hicostlook.cfm

FHA Approved Condo Look-Up https://entp.hud.gov/idapp/html/condlook.cfm?CFID=1318400&CFTOKEN=9c57314bac1b7ef7-DD1133B5-B1F5-2C90-75FF9D8F2543C965

First-Time Homebuyer Tax Credit http://www.federalhousingtaxcredit.com/2009/index.html

100 Questions and Answers about buying a new home http://www.hud.gov/offices/hsg/sfh/buying/buyhm.cfm

½ Off Homes for teachers, firefighters, EMT’s and Cops http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm

Do I have a Fannie Mae loan? http://loanlookup.fanniemae.com/loanlookup/

Do I have a Freddie Mac loan? https://ww3.freddiemac.com/corporate/

I hope this helps clarify your investment questions.

Your Primary Residence is NOT an Asset

2009-10-05T22:51:00.000-07:00

Did I get your attention with that bold statement? Thought so. I figure, this is the first post of many so we might as well define what this blog is all about. Let's leave the confusion at the door. I think part of the problem we're facing right now is that most Americans have no idea what they're doing with their money. We are bombarded daily with images, articles, news reports, blogs, videos, and breaking news feeds with all sorts of mixed messages. My theory is that all these media impressions are purposely designed to be confusing so that you just throw your hands up and say something to the effect of, "Why don't I just give my hard earned money to this financial institution to manage for me because I have no idea what I'm doing?" or even worse, "I can't deal with this mess right now, we'll just start investing later, 5 years from now, or 'someday'." As Tony Robbins says, "The road to someday leads to a town called Nowhere!" Unfortunately, due to the economic crisis we're living in, that town will be filled to capacity and will have a lot of occupants who chased the hottest investment ideas, the next big thing, easy money, quick flip properties, penny stocks and the like. My goal for you would be to take the exit before "nowhere" and live a life of abundance (which doesn't always have to mean financial abundance). Success is the stuff left over when the money runs out.
Here's where we begin. Let's get a few of the basics on the table. If you take a deep breath and open up to the fact that with time and some educated investments, you will retire in style and live a life that's a little less confusing. Start with the title of this post. Your primary residence is NOT an asset. The definition of an asset is something that puts money IN your pocket. By definition, the house you live in does not put money in your pocket, in fact it takes money out of your pocket every month for 15 to 30 years typically. Even if it's paid for, you still have to pay taxes and insurance and possibly a homeowner's association fee. The confusion that we've encountered this past decade is that homeowners have been able to pull money out of their primary residence and use it to buy lavish gifts, vacations, home improvements and other rental property. The problem with this is that over the course of 10 years, the first time homebuyers got used to hearing the stories of these kinds of financial winnings and have come to expect the same. Buyers would constantly rationalize their purchase as an "investment" because it's just supposed to appreciate. Never before was appreciation really the incentive to buying a primary residence. Some markets in this country and other parts of the world would appreciate at alarming rates and owners got very excited about what they could buy with the "equity" in their home. In reality, a home is no different than a car except for the cost and the financing terms. A home is supposed to last 30 years thus a mortgage is typically 30 years, while cars unfortunately tend to last 5-7 years thus financing is the same. A car was always looked at as a bad investment because it went down in value as soon as it was driven off the lot, but a home was looked at differently for some reason. A home was just supposed to go up in value and as soon as that proved not to be true starting around the end of 2006 panic starting setting in. . . (to be continued)