Friday, December 19, 2008

Will our American Business' Leaders ever learn?

I found a very good bit that really sums it up. We have produced bad results over and over again by making same mistakes over and over.

Part of that "Garbage In" get "Garbage Out" type thing. Pay people to produce the wrong result and get the worst case end result. Over and Over and Over again. Planing and thinking must change to be 3 and 5 year and even to 10 year best results. Or go buy some Lotto tickets and try to win on the really short term. With longer goals and better real planning We can be better than the offshore businesses. But if we are only interested in the next quarterly result... Same old bad decisions to get paid.

See "When Will We Ever Learn?"

It is short and covers the topic well.

Keith L.

Wednesday, December 17, 2008

Property on Brokers open. Not so hot.

OK so last Tuesday's open house I go look at the new inventory. Wow, was I surprised. The low pried stuff for the area's were even worse than usual. Not the prices. The houses. To say the Fung Shui was off would be polite.

These floor plans and living spaces were terrible. Not only were the prices High for what they were... I would not recommend to any of my clients that they even try to live in those spaces.

This stuff would look on paper to be OK deals or even the lower end of the current pricing. But even in a good market they would be cheaper than the surrounding homes.

The funny part... Was the frequency of bad homes on one Broker's caravan day.

Go figure???


Tuesday, December 16, 2008

Market conditions overall - good for loans

Bonds and home loan rates spent last week testing their previous best levels of 2008, and finally rallied on Friday to reach their best levels not just of 2008 but of the last five years. Stocks, meanwhile, were under pressure throughout the week waiting to see whether Congress would approve emergency loans for GM and Chrysler. While the House of Representatives approved the measure Wednesday evening, the Senate rejected the $14 billion bailout for the US automakers on Thursday evening, citing a lack of wage concessions by the United Auto Workers (UAW). Friday, the White House announced that the government may be willing to use Troubled Assets Relief Program (TARP) funds to prevent an immediate collapse of the auto industry. One thing we can be sure of in this matter is that the volatility for both Stocks and Bonds will continue while this issue remains unresolved.

There were other important happenings in Washington to note last week. Five members of the House Financial Services Committee are sponsoring a bill that would force the SEC to reinstate the uptick rule. The uptick rule is a former rule established by the SEC that requires every short sale transaction to be entered at a price that is higher than the price of the previous trade. So what would the reinstatement of the uptick rule mean for Bonds and home loan rates? The reinstatement of the uptick rule would do a lot to quiet the excessive volatility in both Stocks and Bonds.

In other important news to note last week, the Retail Sales report for November showed that retail sales fell for a fifth straight month. Meanwhile, Initial Jobless Claims reached their highest level in 26 years. Both of these reports are indicative of the current economic climate, and given the events of the week in Washington, they had minimal impact on Bonds and home loan rates.

As mentioned above, Bonds and home loan rates rallied Friday afternoon to reach their best levels of the year. As a result, they ended the week .25 percent better than where they began. There may be an opportunity for you to reduce your home loan payments if you were looking to refinance.

Let me know if you need a referral to a great Loan Broker who can get you the best rates.


Tuesday, December 09, 2008

Market Forces... Moving for the better on some fronts

The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative "solutions", the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates...with the possibility of refinancing should rates decline further.

In other news to note from last week, the Bank of England and the European Central Bank both cut their key benchmark interest rates in an effort to revive their sagging economies. The reduction in rates was expected as part of a global coordinated effort, and our Fed is widely expected to cut its benchmark rate during its meeting on December 16. While a cut by the Fed often causes home loan rates to rise - because a Fed rate cut can lead to inflation, which is the arch enemy of Bonds and home loan rates - the deflationary environment we are currently in may prevent home loan rates from worsening significantly after the Fed cut. This is going to bode well for all those apartment building loans tied to the LIBOR rates. Personally I'm Loving this.

Bonds and home loan rates tested their best levels of 2008 throughout last week, but could not improve beyond them. As a result, Bonds and home loan rates ended the week slightly worse than where they began... even in the midst of rumors of rates declining as mentioned above.

GAS PRICES SURE HIT A RECORD EARLIER THIS YEAR, BUT NOW THAT THEY HAVE IMPROVED! I have seen multiple stations here in Los Angeles with all 3 prices under $2.00. I did not think I would see these prices again in my lifetime. I thought for sure that once the consumer public had gotten used to $3.00 plus gas that it would never come down.

So what market forces are making me feel better today? Gas at a reasonable price & the loans on some apartment buildings some clients have are about to become cheaper and more affordable for their operating budgets. (and I manage some of those)

Those are very good things.

Think of all the handymen and service guys like plumbers who service apartments and homes all across America... Cheaper gas means they may afford better holiday gifts for their kids and wives this month!

Very good things.

Keith L.

Thursday, December 04, 2008

House for rent 2 Bedroom 1 Bath + Den

House For Rent – Santa Monica
2 BRm + Den, Full Bath, Fireplace, Wood Floors, 2 Car Garage
Just 2 blocks from Trader Joe’s on Pico Blvd.
Rent is $ 2,500.00 mo,

Charming 2 bedroom home is in the Sunset Park area of Santa Monica. Very affordable rent. Beautiful white rose garden out front. Clean hardwood floors. Den could be an office or a third bedroom in a pinch. Good back yard for you to have a vegetable garden or for some cozy entertaining. Two car garage is off the alley. Gardener is included in rent!
Well maintained. Major renovations included nice double thick sound insulating windows on the Freeway side of the house. We are looking for a good tenant. Want to reduce your Westside commute?

Call Keith Lambert - Property Management line @ 310-391-0821

Map Link to…

2920 Urban Ave. SM

If you have good credit you still can buy some good properties!

Treasury mulls plan to lower mortgage rates to 4.5%
Move would help homeowners and buyers with good credit, but would do little for troubled borrowers

How long will the recession last?
Longer than past downturns, and Wall Street's meltdown will slow the recovery…

The details include:
…the fact that the recession is now already 12 months old, and clearly not approaching its trough yet, raises the distinct prospect that it will exceed the length of the 1973-75 and 1981-82 recessions (both at 16 months), making it the longest since the Great Depression (43 months, from August 1929 to March 1933). The crowd fond of making comparisons to the Great Depression will be quick to declare some kind of victory on this one.
Second, the prediction that this recession may end around the middle of 2009 is not unreasonable, but even if accurate it disguises the critical question: What kind of a recovery is likely to follow? The answer is: probably a gradual one, unlike the more typical (but not universal) pattern of the economy coming out of most past recessions roaring ahead, propelled by pent-up consumer demand.
The healing process of a deeply wounded banking system, that has already led to nearly $1 trillion of write-downs, will act as a weight around the neck of any economic recovery in the latter part of 2009. Banks will likely continue the slow process of recapitalization and cleaning up…

So a Gradual Recovery is what to expect. Do not look for a specific marker to show you the bottom of the market. There will not be one. Pull your Cash together and let’s buy you an income producing property.

Call me to review your financial options in dependable Los Angeles residential income properties. Or even a starter home on the Westside.

Keith Lambert
310-391-0821 - Go to this site to start your Search!