La La Land and the Real Estate game - A game played to Win

Single Family Home Rental Advice... My 2 Cents Worth

2012-01-17T12:16:00.000-08:00

An extended family member from out of town asked a rental question. I'll share it here.

Susie and her husband are moving to a new city for work relocation. The house they have in San Diego County is down in todays market and they have very little equity left. But they put plenty of equity and sweat equity into this house. So selling at a loss is not a great thrill.

Therefore they want to hang on for the rebound in the market and rent it short term.

The dialog went like this:

Hey Keith-

Have a question for you. Is it better to rent to someone you know who would take excellent care of your home and take a little bit of a loss on a monthly basis OR make a couple hundred extra a month with someone you don't know?

I'm leaning toward the little bit of a loss situation but want your professional opionion!

Love ya!

And my Reply is:

You have to go by the seat of your pants on these situations.

In calling on the references (more than one!) the most important question I can ask of the previous landlords is "Would you rent to them again?"

The amount of damage and down time for repairs is really heavy if you select poorly. So past landlords are key.

You have one unit. One heavily invested home. If you are renting in the new town... Is the rent received (old place) higher than the rent paid (new place)? If so, it is a good thing.

My 2 cents.*

Sincerely,
Keith

* Price charged is Zero. My liability is the same.
No legal advice given here. Emotional justifications and encouragement offered freely and with my best of intentions to make you feel better about a hard and difficult decision.

Her followup:

Thank you brother!! Appreciate your advice. ...

One point I like to make here is the number of Units matters. If you buy or happen to have just one (like Susie above) and a bad tenant messes up or leaves early you are down and left naked to pay the mortgage by yourself for as long as it takes to repair and re-rent. That can be very costly. If you have more units... 5 plus! Then you have less financial hardship as you fix and re-rent one.

so my advice... Get as many units in the investment property as you can afford! Or team up with a couple of others so you can buy and properly fund a bigger asset.

So call me if you are interested in buying or investing in performing real estate in the Los Angeles region where historically the rents have been strong and stable.

Sincerely,

Keith Lambert
310-391-0821

Visiting and need to see Los Angeles... Beach side option

2012-01-09T12:11:00.000-08:00

OKay if you are coming to the area to search for a place you need a short term place....

If you are in the area and have family coming from out of town and you do not want them on your couch for days.

If you are a business transfer and want a week of good housing but not a boring hotel.

THEN the answer is the Venice Suites or Venice Breeze Suites.

You can find all the info on www.BestOfTheBoardwalk.com

Really cool to look out your windows and check out the serf on the beach. WiFi for the guests. And Venice Suites does include parking. A big deal in beach towns up and down the coast. Ask if parking is included. Many of the other places will say No.

Stay at the best. Right on Venice Beach for the views and fun hip feel.

IMHO. These are the best.

Keith

Merry and Happy - To all a good night. 2012 - Bring it on!

2011-12-30T09:37:00.001-08:00

I think this is the best Holiday Card for this season.

Hopping you all had a nice holiday filled with family and love. Now as we look at the new year we turn to 20 12 with aspirations for a very profitable year.

I think the new year is going to be very good.

Enjoy...

Snow Globe Los Angeles from All Cut Up Films on Vimeo.

Nice! Right?

Keith

1031 Exchange is a Great Wealth Building Tool Available to Income Property Investors

2011-09-07T11:04:00.000-07:00

Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:

An investor who purchases $100K worth of Microsoft stock in 2000 sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our Microsoft investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from the Microsoft investment plummets from $100K to $70K. Still not a bad return, but after taxes our Microsoft investor now has only a total of $170,000 to reinvest.

Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same $100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.

The effect taxes have over the long term are dramatic. I suggest having performing real estate in your portfolio.

If you want to invest in secure West Los Angeles multifamily or commercial property please consider using my services to aquire/manage/sell as needed.

Sincerely Keith Lambert
310-391-0821

Venice Breeze Suites on Venice Beach - Furnished rentals

2011-07-23T12:02:00.000-07:00

Soon on the market

2011-07-14T09:09:00.001-07:00

Golf day

2011-04-29T12:20:00.000-07:00

Spent yesterday playing gold and then fun times in the “Old Place” OMG this was so cool.

First we had a round of 18 holes of great golf as a foursome at Malibu Country Club. It was great weather and hot but not too hot. The golf was fun and the betting of skins was merciful light. Jeff, Nick and Brooks were good fun company. I did my fair share of good Drives and Putts. Yet I did burn through a few golf balls. The course is narrow for us duffers. If you have an inopportune hook or slice just leave it to the snakes in that wild rough.

We had many great shots by each of the golfers.. Nick has the best come from behind put on from the fringe that dropped in after a 30+ foot roll down hill and kept Jeffery from going up another skin. I had several long tee shots that landed on the green for a chance at "Greenie" side bet wins. And I got one! This doubles the winnings on that hole.

Then after the round Jeffery and I did a second 9 holes in a fresh golf cart (it is a long course with lots of hills). They even made us a deal on the price of the play as it was getting very late in the day. So Brook and Nick headed home. Jeff and I went on to play a bunch more holes and basically had the course to ourselves.

Delightful cool air and nice lingering light left us out there for a long time. It was so invigorating we kept at it for a long time. So fun.

I’m feeling a bit whooped from a total of 31 holes of golf! Jeffery then took me to get a steak dinner. A super cool place. The wine and steak and beer and banana bread pudding we had last night at the Old Place put me back in shape some. He knew what he was doing. He had been here many times before.

I was impressed with how much fun it was. Wine, Beer, Clams and STEAK. A short menu. Really fun modern update in an OLD western bar that has been there for YEARS.

http://www.oldplacecornell.com/

Dear Reader... Road Trip Tip: If you visit Los Angeles I suggest you rent a convertible so you can drive up the coast of Malibu on a sunny day. And then back via our little bit of “Out Back” of the Santa Monica Mountains. Drive home a back way up Kanan Road and some via Mulholland Hwy. A serpentine snake of a road that will be fun in a convertible and when you have no timetable to have to keep. Then do stop here. Drop out to the Freeway 101 down to 405 and home.

Catalina - a tip top sweetheart property.

2011-03-10T10:06:00.000-08:00

AVALON, CATALINA ISLAND - Catalina Realtors is proud to announce that "The Holly Hill House", also known as the "Lookout Cottage" is now on the market. This majestic masterpiece of Queen Anne architecture was built by Peter Gano in 1889 and is Catalina's most famous residence. You can now own a piece of Catalina history with astounding views of Avalon Harbor, the Pacific Ocean, Mainland, Boardwalk and Mountains.

This unique property includes an adjacent lot featuring a large fresh water swimming pool, spa, sauna, wine cellar and entertaining areas. The home comes fully furnished and includes a two car garage, kids playhouse, three porches, three patios, a parlor, sun room, two kitchens, two living rooms, three bathrooms and five bedrooms. The house is approximately 2,500 sq. ft., encompassing 3 floors plus a Cupola, an open-air circular patio with a cone-shaped roof.

Listed by Catalina Realtors, serious inquiries only please. $6,500,000

from http://www.ecatalina.com/news-article-1843.html

WoooWooo. So many times we see this property in photos of Catalina and Avalon. It must be the second most photographed property of the Avalon area. Right behind the Avalon Casino.

Where else would you want your family to watch for you to come back from fishing. But up there!

A Super Sweet Spot.

Call me if you need an Agent to represent you. I'll take you over on my boat to preview anytime. (weather permitting) Or we can fly on the Island Express helicopters if the water is choppy. Or if you know Avalon and are able to afford a 6 mil. vacation property... I'll ride over to Avalon on your yacht. Thanks. This will be fun.

Sincerely,

Keith Lambert
310-391-0821

323 Pershing Drive. Offices for lease

2011-02-21T14:33:00.000-08:00

View 323 Pershing for Lease in a larger map

Great office space - two executive offices with views overlooking the nature preserve and out to Marina Del Rey.

Lots of support space for reception and secretarial. Two bathrooms.

A private entrance off the back "Pershing" side and plenty of visibility form Culver Blvd side.

Signage can be arranged.

Call Keith
310-391-0821

Brand - My blog and it's posting

2010-10-22T14:04:00.000-07:00

I liked this quote about Branding. We do Branding when Real Estate people talk about the market place on our blog or web sites. I have tried to be an Astute Observer of the Marketplace. By MLS rules I can not re-post their information here and so I do not often focus on individual properties on this site. But more the Marketplace and the forces affecting it.

"If people are worried about undermining their business value by promoting their personal brand, they are not thinking big enough.

Brands mature over time, like a marriage. The bond you feel with your spouse is different than when you first met each other. Excitement and discovery are replaced by comfort and depth. Personal brands mature over time, and if you nurture the relationship you have with your audience for long enough, your personal brand will evolve to one that benefits your company.

You have to understand your own personal DNA. Don’t do things because I do them or Steve Jobs or Mark Cuban tried it. You need to know your personal brand and stay true to it."

-- Gary Vaynerchuk, host of Wine Library TV

Prices up but volume still sluggish

2010-10-20T10:48:00.000-07:00

I liked the news today in the LA Times about the small rise in the average sale price.
Not that the volume of sales is up. It is till tight.

The most important part of this news is the strengthening shows that the bottom feeders have come and gone. It is now going to be a long and slow recovery to an eventual upswing for the Southern California Real Estate market. I realize I'm putting my prediction on the wall here. It will ride.

Read the news on This LA TIMES Link

Poll in LA Business Journal on LA Rent Freeze

2010-05-13T12:32:00.000-07:00

Please Vote on their Poll.

The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.

The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to studdy it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.

Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.

Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"

www.labusinessjournal.com/

California $10,000 Tax Credit for Home Buyers - in a nutshell

2010-04-15T09:29:00.000-07:00

Key points...

Buy in 2010 or at least have contract executed on or before December 31, 2010 and closes escrow before August 1, 2011.

Tax credit is the lesser of 5 percent of home price or $10,000, in equal installments over three consecutive years.

Buyer is required to live in the home for two years or forfeit the credit.

Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation

It makes it a little more likely for a buyer to commit sooner rather than later. So where the price is right and the value is good, buyers are making the decision to buy a home. Lenders can lend if they qualify. Real down payments are required and they must have the ability to pay the loan. (Yes actually qualify like we did in the 1980's and 1990's) Some appraisals are still low as those guys seek to be on the safe side. But mostly the gears and wheels that make the market move are getting back to work. Many escrow offices will attest to the return of the marketplace and plenty of open escrows.

Where do you want to live? The buyers market is Now.

Call me or email me.

Keith Lambert
310-391-0821

www.RELIST.net
Search the current active MLS Real Estate Listings on my site.

Open House on Sunday 3/28/2010

2010-03-27T14:03:00.000-07:00

Sunday from 12 noon to 3 pm. Come preview this nice family home.

Oops the Link expired...
http://keithlambert.postlets.com/ for currently running Postlets.

House no longer on the market...

House and Guest House in the Culver City Zip on the Mar Vista boarder.

Great upgrades to the home ~~make~~ made it a very good deal.

Keith

310-398-3272

Going Green around your home

2010-03-22T15:29:00.000-07:00

Safe Spring Cleaning for Your Home and Family...

Many parts of the country are already warming up to spring...and that means spring cleaning. But have you ever considered what you're using to clean your home...and if it's really safe for your family? The problem with cleaning products is that there is very little regulation and virtually no labeling requirements.

"A lot of cleaning products contain toxic ingredients that aren't properly regulated, disclosed, or in some cases even tested," said Sara Mohs, co-founder of simplyneutral™, a company that promotes sustainable living through non-toxic cleaners.

In fact, most household cleaners are produced using a petroleum-based formula. That's right, petroleum! In addition, they typically include chemicals, fragrances, and dyes that can be irritating to your eyes, skin, and respiratory tract. In light of last week's Poison Prevention Week, here's a list of natural alternatives that work great and are probably already in your pantry:

Baking soda - We all know that baking soda absorbs odors, especially in refrigerators, but did you know it's also a simple and effective cleaner? Just mix baking soda with warm water for an inexpensive cleaner comparable to commercial "abrasive" cleaners.

Vinegar - White vinegar is actually a deodorizer and a disinfectant...making it a great all-purpose cleaner. Avoid using vinegar solutions on marble or grout, but it's perfect for all of the other surfaces in the kitchen and bathroom.

Lemon juice - Use lemon juice on hard-water stains, soap scum, even rust stains in the shower, tub, and toilet. Mix lemon juice with salt to remove stubborn stains from coffee pots. Or you can mix lemon juice with baking soda for a softer, paste-like cleaning solution. Add a little to olive oil for an effective wood polish. Blend it with water to make a potent air freshener.

Cornstarch - Cornstarch makes an effective glass and surface cleaner. Plus, you can combine 2 tbsp of cornstarch with 3/4 cup of baking soda for an inexpensive carpet freshener.

Borax - Also known as sodium borate, borax is best known as a hard-water laundry soap, but it also cleans wallpaper, painted walls, and other painted surfaces.

In addition to these natural ingredients, there are also a number of non-toxic cleaners that can be bought in stores. But make sure you consider a couple of points before making your purchase.

First, read the label carefully. "Although a cleaner may contain natural ingredients, it may also include dyes, fragrances, or synthetic preservatives," Mohs said. "For example, if the label says fragrances are
added, it may contain up to 150 synthetic chemicals." Second, you may want to take a quick look at the company itself to see if it is serious about producing natural cleaners that are safe for your family, your home, and the environment.

For more information and tips about non-toxic cleaning, visit
www.simplyneutral.com

Let me know if you want more of this type of tip posts.

Keith Lambert

3 headlines that together say something very good!

2010-03-19T07:44:00.000-07:00

3 LA Times headlines all on page B2 send a good signal. – “Home Prices Rise 11.2% in the state” “First Time Jobless Claims Decline slightly; Inflation Remains in Check” and “30 year Fixed Rates Edge Up” – Now that looks like the light at the end of the tunnel I was hoping to see. This is the combination that signals a good move in the real estate marketplace.

If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.

IMHO

Keith Lambert
www.REList.net

Westside Real Estate in Review - 2009 RE information

2010-02-23T08:34:00.000-08:00

Westside Real Estate in Review

The real estate market from late 2008 through the fall of 2009 was characterized by uncertainty and falling real estate prices over those many months. Below you will find information accumulated from the Multiple Listing Service provides an overview of the sales activity of 2009.

----------------------------------------------------------------------

Venice - 120 houses sold with an average days on market (DOM) of 76 days. The average price per square foot was $656/ft down from $784/ft from the prior year. The highest sale was 1311 Abbot Kinney Blvd which sold for $5,600,000.

Palms/Mar Vista - 235 houses sold with an average DOM of 55 days. The average price per square foot was $481/ft down from $531/ft the prior year. The highest sale was 4056 Marcasel Avenue which sold for $2,500,000.

Santa Monica - 188 houses sold with and average DOM of 72 days. The average price per square foot was $744/ft down from $835/ft the prior year. The highest sale was 703 Palisades Beach Road which sold for $6,500,000.

Brentwood - 217 houses sold with an average DOM of 94 days. The average price per square foot was $767/ft down from $969/ft the year before. The highest sale was 25 Oakmont Drive which sold for $15,150,000.

Pacific Palisades - 197 houses sold with an average DOM of 96 days. The average price per square foot was $678/ft down from $835/ft the year before. The highest sale was 1730 San Remo Drive which sold for $14,500,000.

Marina Del Rey - 25 houses sold with an average DOM of 121 days. The average price per square foot was $460/ft down from $542/ft the year before. The highest sale was 143 Voyage Mall which sold for $2,275,000.

-------------------------------------------------------------------------------------

Bank real estate lending policies have become very restrictive in 2009, especially when borrowing for homes selling for more that $1 million dollars. Loan applications are getting much more scrutiny. Inventories of homes grew from January into the summer months, including higher end properties putting downward pressure on prices.

Buyers are being extremely selective and in many cases were looking for "a deal" and those deals were out there. Westside properties were not immune to the downturn, though when compared to the San Fernando Valley and other neighboring areas real estate prices did not fall nearly as far.

The above review is useful. But maybe it would be more useful if it also listed the lowest sale! LOL

Keith

11941 Wagner Street - $768,000 - in Culver City CA

2010-02-15T12:32:00.000-08:00

A very nice Family House. Central Heat and Air Conditioning. Hardwood floors. Plantation shutters throughout the house. And a guest house (with permit)

Remodeled Kitchen 2006. Large Executive Sink. SubZero refrigerator w/ Glass door. Viking gas cook top. Built in Double Oven. Microwave, Warming Drawer. Extra prep. Sink. Very nice Cats Eye Granite counter tops.

Breakfast nook off of kitchen. Step down Great Room with Fireplace. Master bathroom has extra large spa tub.

Fruit trees in front yard are Lemon and Oranges.

11941 Wagner Street

This is priced right for today's market. With a few little tweaks here and there this can be a great family home for any growing family.

Please Forward to any buyers you may know.

Thanks Keith

HotIgloos.com - new map serching for apartments

2010-02-04T10:27:00.000-08:00

Apartment hunting in Los Angeles just got easier with a new site called Hot Igloos. I think the new site will make a big shift away from the WestsideRentals.com site that is charging people way to much money to view the listings.

And this site has a much better search feature than CraigsList.org

So I am starting to use it. And recommending it to all the local housing providers I know as well.

What do you think of this listing on the site?

http://www.hotigloos.com/Listing/Rentals/19990264.html

This is for the One Bedroom up at 18th Street in Santa Monica.

Or start at the home page and select your desired area. www.HotIgloos.com

Have fun searching for Free!

Keith

Happy Holidays

2009-12-15T12:54:00.001-08:00

Here in our area we have some cool holiday traditions. There is a Boat Parade out in the Marina Del Rey harbor that is fun. But at night hard to get a lot of good photos.

In Venice on the canals there is a simular parade but on the smaller scale.

Here are some photos to share. ( Thanks to YoVenice.com )

Todays Tuesday Caravan

2009-12-08T10:16:00.001-08:00

Most of the Mar Vista area open houses today are uninspiring.

However over in Santa Monica there is a really top notch opportunity.

723 11th St , Santa Monica,CA for $1,300,000 is the deal of the day. North of Wilshire is hot in Santa Monica. North of Montana is the posh area of town. This new listing is open today. It may need some updating but Carpet and Paint etc. is relatively cheap.

With the changes in the market the "low" is likely at hand. Prices are pressed hard down. Interest rates are moving up. The required down payments are getting bigger. Sellers are finding fewer qualified buyers. If you are a real "Ready, Willing and Able" buyer you can drive your best bargain now.

IMHO

Keith Lambert
310-391-0821

There is a differance - Income Property -vs- your home

2009-11-27T10:40:00.000-08:00

While it is nice to have growth in value of your home... That does not build wealth for you and your security if you have just one home for your family to live in. You need separate income property. And a Savings account at a bank. And a bit of investment money in something like a business investment or with a stock broker.

This article is on point...

Nov. 22, 2009
View of home as investment needs to change, expert says
BY KATHLEEN M. HOWLEY BLOOMBERG NEWS

Kajal and Vishal Dharod paid $559,000 in 2006 for a new four-bedroom house built in Rancho Cucamonga, Calif. Today, it's worth about $360,000.

"We don't know how we can come back from a loss like that," said Kajal Dharod, 29, a first-time homeowner with a $4,200-a-month mortgage. "Buying the house was a mistake."

American homeownership, once considered a path to wealth, is now leading to disillusionment.
"We always talk about homeownership as being the American dream, but during the last decade, people forgot it's shelter and started thinking of it as a fast way to make or lose money," said Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies in Cambridge, Mass. "The quicker we move back to seeing real estate as a place to live, a place to put down roots, the quicker the housing recovery will strengthen."
Home-price growth in the next decade probably will average about 3.5% a year, based on …

and it concludes with

"After every major bust, there is a rethinking of that asset class," Carson said. "I think people will change their views about real estate and begin to look at it as a long-term investment that provides shelter, rather than a way to make a quick buck."

Dah! Real Estate for a Quick Flip has always been a very risky thing. Long Term Investment in income producing real estate is for the person that is looking for long term security.

As long as the business leaders in US Corporations look to just make enough to get a stock bonus to pay off we as a country will continue to fail. As long as real estate buyers look to buying a single family home for a quick profit we will have a messed up financial situation.

I believe in Long Term Investment in income producing real estate. If you do as well then please call me and lets get you in while this is a buyers market.

Keith
310-391-0821

Thanksgiving thoughts

2009-11-26T07:40:00.000-08:00

Something to be Thankful for. Balance.

Balance is a good thing. Today in the Los Angeles Times - Page B2 -
"Fannie Mae to tighten mortgage lending rules" Minimum 620 credit score and no more than 45% income to debt.

Followed by this story "Interest rates drop, matching record low" where the review how rates are now matching a record low of 24 years at 5.06%. But very few are applying.

If the system was not cranked wide open by too loose money we would not have had the blowout. Now the scarcity of banks willing to lend and the prevalence of regulators to be arbitrary and capricious leaves the lenders scared to actually extend credit.

So all you borrowers be prepared for slow responses. Prepare for delays. Be aware that the lenders are chicken for good reason. Sure it may be staffing reductions. But the reality is... If you do persevere you can take away some really terrific loan rates once you get approved!

Let me know if you need an introduction to a loan broker. I have two good guys that I can introduce you to.

Keith
310-391-0821

2009-11-09T11:11:00.000-08:00

"TIME IS MORE VALUABLE THAN MONEY. YOU CAN GET MORE MONEY, BUT YOU CANNOT GET MORE TIME." Jim Rohn. And while this is certainly true, home buyers and folks receiving unemployment benefits both got the word that a bit more money and time is coming their way.

Just on Friday, President Obama signed into law a bill that extends unemployment benefits and the First Time Home Buyers tax credit, which is also being expanded to include benefits for homebuyers who aren't on the first time around buying a home. If purchasing a home is in the cards for you or anyone you know, you can get all the details of the homebuyer's tax credit in this week's Mortgage Market Guide View article below. But first, here are a few additional highlights from last week...including important job market news.

Last week's official Jobs Report showed that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were widely expected. In addition the Unemployment Rate rose to 10.2%, quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983.

However if I think back to that time we had the growth of the personal computer and a few other technological changes to the world we lived in. Back then in 1983 a Cell phone was plugged into your car or as big as a lunch box. It was a rare business person who owned a personal computer of any type.

We may not be able to get back time but we are back to a time of High Unemployment. What will be the driving force of the work force of our next faze?

Movies are digital and FX is all in a computer. Technology is building remote controlled planes to drop remote controlled bombs. Pilots are so bored that they overshoot their destination by an Hour.

Banks and their regulators are being duplicitous and difficult to fathom. The Government is giving them money fast. Telling them that this money is so you can loan. Then the other department of the government is looking over their books with a fine tooth comb to make sure that they only make loans of the highest caliber that will surely not default.

So how do we Real Estate Agents sell anything if the loans are not going to be approved and funded?

What we need now is strong sources of Employment. Strong borrowers. And Strong Banks willing to make the loans. This we can all see as the three legs of the support for our marketplaces.

It is the Holiday shopping season next. Here is to hoping the numbers are good for us all.

Homebuyer Tax Credit Extended and Expanded!
Last week, a new Homebuyers Tax Credit bill was signed into law. The bill extends the tax credit for first-time homebuyers (FTHBs), as well as opens it up to current homeowners who are looking to buy. And even if you aren't looking to purchase - pass on this article to anyone you think might be in the market to do so. This is information that might benefit them greatly, and I'll be happy to be of service.

Here is a brief overview of the Homebuyers Tax Credit - and its benefits - based on the new bill.

Tax Credit for First-Time Homebuyers
FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.
What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

If you are looking to buy in Mar Vista or Santa Monica or Venice or Palms... Please give me a call and get you this Homebuyer Tax Credit!

Keith
310-391-0821

How healthy do you feel the economy is today?

2009-11-02T22:54:00.001-08:00

Last week the Commerce Department reported the Gross Domestic Product (GDP) for the 3rd Quarter. As you can see from the chart, GDP rose by 3.5% for the first gain in a year and the strongest reading in two years.

While most media outlets were giddy about the news and started the hype that the recession is behind us, it's important to remember that there's more to the economic data than just the headlines.

The temporary "Cash for Clunkers" program has now expired, but was a big part of last quarter's GDP gain. If we remove it from the total, the reading would have been a more modest 1.9%. But there is even more to the rise in the latest GDP number that is just temporary...

Also bolstering the economy has been the $8,000 first-time homebuyer tax credit - which is set to expire at the end of this month. Many home buyers have been taking advantage of this program - and wisely so.

New Home Sales were reported last week, showing a 7.5-month supply of inventory. While that number is slightly worse than last month's 7.3 reading, it's still a big improvement from where we were in January. Back in January, inventory levels reached a high of 12.4-month supply! The improvement in housing inventories has been due in large part to the $8,000 First Time Homebuyer Tax Credit, which is set to expire on November 30.

There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30th, 2010 would qualify for the credit.

Another bit of news was the UCLA Anderson Forecast: "Recession likely ended this quarter"
In that report there is this line...

"Credit-impaired lower-income consumers can't spend the way they used to, and wealth-impaired affluent consumers won't,"

The Anderson Report further says that this Qtr marks the end of the recession.

Well now we all feel better knowing that this is the low point. Right? There are signs of activity. Some very good things. Maybe this is the low point and we are bout to begin the long slog back to normalcy.

Not the wild growth of the recent past but healthy productivity!

IMHO Keith

A shadow inventory in Los Angeles... Where is it?

2009-10-27T12:24:00.000-07:00

I know I have suspected that there are/were more foreclosures to come.

There is a really good write up on this topic in the Wall Street Journal.

"So where’s that long-awaited deluge of bank-owned homes that is supposed to flood the U.S. housing market? This “shadow” inventory has..."

It has been keeping a few buyers on the sidelines looking for a deeper bottoming out to the real estate in the local market. Reality Check. Buy if you find the one that works for you long term. Especially if you plan on living in it.

Now in the Residential Property side. We do not have a market about to be swamped.

If you have the funds needed to qualify in this lenders tight qualification period... You are golden and can drive a bargain. We should talk. You need a strong advocate.

Keith L.
310-391-0821

Details of the financial market.

2009-10-26T11:23:00.000-07:00

THE DEVIL IS IN THE DETAILS... Or so the famous saying goes. And when it comes to really understanding the various reports and events unfolding in the economy, it's important to take a look at the details - not just the headlines. Here's what we know...

On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month's number could climb higher again, as oil and natural gas have both been on a tear higher lately.

In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren't even aware of it...so please let me know if you or someone you know needs more information - the clock is ticking!

Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April.

In other news, 3rd quarter earnings season continues, where companies report their status as of the end of September. While many companies are beating expectations, it's important to realize that many of those companies achieved better earnings by cost cutting and layoffs, not from increased sales. This is a big disconnect between Wall Street and "Main Street". Stocks are rocketing higher based on these "positive" reports, but the cost cutting and job cutting measures can only go so far...you can't simultaneously grow the ranks of unemployment - and then grow your business, hoping for increased sales to those same people who are without jobs.

Last week's Jobless Claims numbers seem to confirm this as Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people's unemployment benefits expiring, without them having been able to find jobs.

Also worth noting is the news that ratings agency Moody's lead analyst, Steven Hess, said that the US needs to cut its deficit or it could lose its "AAA" rating in the next 3 to 4 years, which we have maintained since 1917! Think of all we've been through - two World Wars, the Depression, three Wall Street collapses and major terrorist attacks... yet our credit quality has maintained that AAA rating, allowing us to issue debt at the most favorable rates. Hess went on to say that if the US doesn't "get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy." And just like on a mortgage when the credit rating gets reduced, interest rates move higher. This will definitely be something to keep an eye on in the months ahead.

After all the week's action, Bonds and home loan rates ended the week slightly worse than where they began. How much longer will we have good Interest Rates is a good question.

If you have a Crystal Ball and see the next moves on the market... Hit comment and tell us where you think it is going.

Keith L.
310-398-3272

Tuesday's RE Broker Caravan - Open Houses

2009-10-20T14:22:00.000-07:00

I looked at a lot of the new items on the market. Several were obviously not ones that were made ready for the market. They are the left over after a long life and many years of not being improved. The ones that were the golden opportunity for the Fix and Flip type buyer. (You recall the old way... Actually improve the place to make it more marketable)

In the Westside Village areas were several. One on Military. One on Kingsland. The one on Kingsland has a really big lot on the side of a big hill. But there is nothing to salvage of the old home. Views to the south are nice (If you like sun in your face).

But at $629,000 for the lot value can you build a nice place on it and make it pay off for all that risk??? Maybe at $500 k plus a 400k construction job would you then have a house worth $900,000. Possibly. But where is the profit in that for the risk taking developer?

However over on the Mar Vista Hill there are two new listings both priced at just $799,000 that a few years ago would have been unthinkable. This is prime hill top residences and very desirable elementary school district. Not down wind of Santa Monica Airport. Not with a view (or the price would be much more). But the basic original houses with the standard lot of that area. One of them has offers in on it already. Both with the same old home. Badly in need of the basic renovations to update it from the 70's.

Will they sell. The Mar Vista Hill places will. They are priced aggressively. The ones in Westside Village may not. At least not right away. Don't want to go there for the Palm's homes. Even at those prices.

When you are ready to get serious about getting a home... Work with an agent that is in the market. I will always tell my clients the truth. And I have the ability to get the agreements needed to get the transaction done. The best end result is the successful purchase/sale.

Call me if I can help you with Anything in the West Los Angeles market.

Keith Lambert
310-391-0821

Heat is on... financing

2009-10-19T10:54:00.000-07:00

"THE HEAT IS ON." Glenn Frey. While cooler temperatures are beginning to descend on many parts of the country, Bonds and home loan rates are feeling the heat and pressure from several fronts. Here are some details...along with why it's important to act soon to take advantage of current home loan rates, as they may never be seen again.

Last week, the Core Consumer Price Index (CPI) was reported higher than expected, indicating that inflationary forces may already be underway. Remember, inflation erodes the value of the fixed return that a Bond provides - therefore, inflation is harmful to Bonds and home loan rates. Just the hint of inflation can cause home loan rates to worsen, which is what we saw last week.

And here's a very interesting and important note - when looking at these CPI numbers, it is important to understand the effect that the "Cash for Clunkers" program had on this index. The Cash for Clunkers program was very "creatively" accounted for as a reduction in the sales price of automobiles, which had to have a dramatic effect on lowering the CPI that was reported. Imagine how much higher CPI would have been had this "creativity" not been used. As even more inflationary fears creep into the economy, home loan rates will continue to rise.

Also adding pressure to Bonds and home loan rates is the Fed's plan to ration out their remaining purchases of Mortgage Backed Securities. The Fed has purchased around $950B year-to-date out of the $1.25T allotted for the program, which is now set to expire March 31, 2010. This means the Fed will be averaging about $14B a week in purchases, a lot less than $25B or so they had been doing up until recently. And anytime demand for an item slows down...including Mortgage Backed Securities...the price goes down. And in this case, it means that home loan rates will move higher.
The bottom line is that the heat is on...and home loan rates are starting to rise already. While home loan rates are still incredibly low, it is clear this won't last much longer - and we may not see rates at these levels again in our lifetimes.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

If you have the ability to get qualified and a suitable down payment to purchase, you are at the right point in time. The right property to invest in is not that hard for a professional agent to find. Give me a call if you want to discuss your plans. Especially if it relates to West Los Angeles, Santa Monica, Venice and Mar Vista.

Keith Lambert
310-391-0821

Listening... to Federal Reserve Chairman Ben Bernanke

2009-10-13T20:34:00.000-07:00

"LISTEN TO WHAT THE MAN SAID." And those aren't just the words from Paul McCartney's hit song of the same title...they're also words of advice for anyone who's considering buying a home or refinancing.

Last week, Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present...it will most certainly become a problem down the road. So why does this matter if you are considering purchasing or refinancing? Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed's purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight - and the reduced demand for these Bonds is also driving home loan rates higher.

Bottom line: home loan rates are already on the rise, and we won't likely see these low historic levels again.

Interest rates are still very near historic lows - George Washington couldn't have gotten a better interest rate - and the opportunity these low rates present is huge for homebuyers. But the Qualification process is harder and Longer.

So get in line with all your paperwork and tax returns and save up a real deposit. No easy qualifiers or no money down loans exist today.

On the topic of inflation - Gold has been on a tear higher of late, reaching a record high of $1048 an ounce. Remember that Gold is seen as a "safe harbor" or hedge against a falling Dollar and inflation - as Gold is not likely to lose much value in periods of rising prices. Again, fears of future inflation are pervasive, particularly in light of the massive economic stimulus that has been injected into the US economy...and inflation will drive home loan rates higher. The latest spike in Gold is more likely attributable to the Dollar's recent decline, but both factors are somewhat at play.

There are deals out in the real estate market. I like Income Real Estate as a Safe Harbor investment. But it is not as liquid as gold or bonds. Investing in Residential Income properties is more long term and inflation resistant than most other investment vehicles. And as it matures and pays down the mortgage it can become a Cash Cow to retire on the cash flow. Not just a Sell it All proposition.

Hit the comment button and tell me the Safe Investments you like in today's market.

Sincerely,

Keith

Tuesday Open houses

2009-10-06T10:16:00.001-07:00

$675,000 for a Mar Vista House.

Now this is a realistic seller and the market will find this a buyable home in this area at this price. It is one of the best deals on the Open House list for today's caravan.

It will be a nice one to preview today.

Keith

Robin Williams sums it up.

2009-10-04T10:12:00.000-07:00

Recent Robin Williams news: On the subject of the federal bailout of banks, Williams said, "This is economic free-basing. … It's like they want us to pay for rehab and pay the bar tab."

Now that seems very on point for the Wall Street and banking fiascos.

And then current lending problems will choke us longer... Much of what I read today in LA Times is on this.

B ob A not lending to refi. Fannie not being reasonable on the rules. Now that the pendulum has swung back way to far on the overly conservative side.

What else is the Sunday paper full of? Great loan rates! But can you or I get them? Not easily.

Takes work to get them. Worth it, if obtained, I'm sure.

Keith

Will Improvement in Housing Index Last?-Minyanville

2009-10-02T08:34:00.001-07:00

Near but not necessarily AT the bottom. So says these pundits.

Will Improvement in Housing Index Last?-Minyanville

Shared via AddThis

1 bedroom for rent

2009-08-25T17:48:00.000-07:00

My first vacancy in a bigger apartment in quite some time.

For Rent - 1 bedroom 1 bathroom Apartment in S. M.

Unit D

Property owner is asking $ 1,745 per month and $2,000 SD.
And good credit score and verifiable income.

Big one bedroom of approx 650 sqft living space. Beautiful hard wood floors and bright kitchen make
this a very nice place to come home to.

Green garden views in front of the dining room window. Second floor breezes are very good as the front half of the property is only single story units. This unit is second floor over the garages. Sorry all of the garage spaces are let to other residents so parking is on the street, but not too hard to find in this high end area. Laundry is on-site with one washer and two dryers.

Call me if you know someone who would like to live here.

Keith Lambert
310-391-0821

Housing and NOD's

2009-08-24T15:31:00.000-07:00

Found an interesting post or two about Santa Monica at
http://www.doctorhousingbubble.com/

He has a fun style. Interesting. Still am alarmist but he does have a few good points. Many agents have taken listings at unjustifiable prices and have to chace the market down. He used this to parley it into a article about higher end areas like Santa Monica finally getting hit by the housing bubble. Maybe so to some degree.

I have some friends and associates are going out to the hard hit areas to pick up the cheap stuff like houses in Los Vegas and in Florida. Writing a check for the full purchase price.

One item is that the Single Family Home market is flooded and getting a few more in the pipeline from NOD's (bank notice of defaults that soon will be foreclosed upon).

Santa Monica will not be that cheap where $50 to $80 thousand will buy you a house but it will be a bit dicey on the Westside when all the pent up NOD volume comes to the foreground. Keep your ears posted for some great deals.

Keith L.

Loans are driving market conditions

2009-06-22T10:49:00.000-07:00

In the LA times...

A tale of two markets divided by the conforming-loan limit
Mortgage rates are low and sales are booming for cheaper homes. But sales are at a virtual standstill for pricier homes because buyers can't get jumbo loans at acceptable rates...

So this affects pricier homes most as only smaller loans can be easily resold on the secondary market. Fewer big loans are being made. Fewer bigger homes are selling. Ouch.

Last Friday (6/19/09 B3) in the LA times "Home Sales, Prices rise in the Bay Area" and conflicting (pg B4) "Mortgage Rates move Lower" and (pg B5) "Bond Yields Rise, Dashing Hope for Lower Rates on Home Loans". So what is the next market situation? If it is priced right it will sell. I am helping a client find a good condo and the market is tightening up. The CMA I just ran shows this to be true.

What is important is... If you find a house/condo you want to live in, then Buy It if you can.

Rates may not be this low in a long, Long Time.

IMHO.

Keith
310-391-0821

Loan Rates - Movement Up!

2009-06-15T14:38:00.000-07:00

"DON'T TOUCH THAT DIAL." That familiar broadcasting statement certainly applied to the markets last week, as the volatility continued and the markets changed direction quickly.

Take a look at the chart below, which shows how home loan rates have climbed dramatically over the last several weeks. In fact, home loan rates are at their highest levels since the Federal Reserve announced their Mortgage Backed Security purchase plan at the end of 2008. While the chart below is just a rough indicator of present rates that require points and fees to be paid, it's clear to see the dramatic climb rates have taken in recent days.

Added supply has been one of the main culprits behind the recent sell-off in Bonds and corresponding climb in home loan rates. So where is that supply coming from? First, all those refinances you've heard about lately are actually turned into Mortgage Backed Securities after they're closed, which adds more Bonds to the market. Plus, government spending plans have to be paid for somehow.so record levels of Treasury Securities are being auctioned off these days. Although the Fed has a program to purchase some of these Mortgage Bonds, the number of new Bonds simply outweighs what the Fed is able to buy - therefore driving Bond prices lower and home loan rates higher.

There was some good news for the economy as Consumer Sentiment came in at its highest level in 9 months, and Retail Sales were inline with estimates, marking the biggest rebound for Retail Sales in 4 months. There was mixed news on the Jobs front: While Initial Jobless Claims were below estimates, continuing claims rose to 6.82 million, which is another new record. And US exports fell to the lowest level in almost 3 years, as the US Balance of Trade widened in April for the second month. However, US exports should improve a bit in the coming days, as the US Dollar recently sank against foreign currencies, which makes US goods cheaper and more attractive to buy. The flip side of that coin however, is that since oil is Dollar denominated, the price per barrel rises to compensate for the erosion in the Dollar.meaning higher prices at the pump and elsewhere.

Bonds and home loan rates were able to muster up some improvement on Thursday and Friday, helped in part by news that the Paulson & Co. hedge fund is purchasing distressed debt and Mortgage Backed Securities, which will help alleviate some of the supply mentioned above. However, home loan rates still ended the week .25% to .375% worse than where they began.

Since Bond prices react negatively to any news of economic recovery, it's an important sign of the coming change.

Are you looking for the bottom? Do you want to buy now before the sellers smell the change in the wind?

Work with a knowledgeable advisor who monitors the real estate markets every move.

Let me know if you have any questions about the properties on the market today.

Sincerely Keith Lambert
www.REList.net
310-391-0821

Swift on Economics

2009-06-04T12:42:00.000-07:00

I love the big picture. This part of an econ blog gets you a good perspective.

From "The Financial Crisis - Part 2: The Rest of the Story" on ... Swifteconomics.com

“The American dream is to own a home.”

This paradigm dates back to the New Deal. Before the New Deal, owning a home was not as important as it is today, because housing prices were relatively stable and even declined over the years. However, during the Great Depression, political radicalism became common place. In 1928, the Communist and Socialist parties garnered a combined 300,000 votes. In 1932, they received almost a million. (1) In an effort to stabilize the mortgage industry, and hedge off political radicalism, FDR and his brain trust decided to push for home ownership in the United States. They believed a property-owning citizenry would have a greater stake in the Republic and be less prone to revolutionary ideas. This culminated in the creation of Fannie Mae (and later Freddie Mac and Ginnie Mae). Fannie Mae works by buying mortgages directly from banks, thus freeing up capital for banks to make more home loans, thus creating more homeowners and fewer renters. And as a result, as economic historian Niall Ferguson puts it, the “property-owning democracy” was born.

However, as nice as owning your home sounds, it is a poor, long term investment financially speaking, unless one has other assets with which to compliment it. In general, buying real estate to use as rental properties is a good investment. On the other hand though, piling a large percentage of one’s income into a home that provides no return outside of appreciation, puts all of one’s proverbial eggs in one proverbial basket. If the local housing market depreciates, a major portion of one’s wealth is affected. ...More

So this is why folks who like Safety (me and many others) advice clients to invest in income property. We look to Cash Flow and Earnings. The Stock market is no longer about the Cash Flow or Earnings that are given to the owner of the stock. (They used to not that long ago - Pre-1980)

So Diversify into Income Producing Real Estate. One should not rely on your 401K in the stock market and your home equity to take care of you in the long run. That is two of the three or four legs needed to hold you up comfortably with real secure wealth. Think of a stool you want to rest on. If you want it really secure the fourth leg would be an insurance policy with a sizable annuity. Not Social Security.

Keith L.
310-391-0821

Bonds Fall, Loan Rates Climb

2009-06-01T12:37:00.000-07:00

"I'M FREE...FREE FALLIN'" Tom Petty.
And a free fall indeed was the case last Wednesday, as Bonds had their worst one-day performance since last October, losing an astounding 206bp. So what caused this free fall...and what helped Bonds and home loan rates rally back and improve later in the week? Here's what you need to know.

The main culprit for Wednesday's sell off was supply. The Treasury auctions and the increased number of refinance transactions closing have added hundreds of Billions of dollars of new Bond supply to the market. Economics 101 tells us that anytime supply vastly exceeds demand, prices will move lower, and that's exactly what we saw last week...and as Bond prices move lower, home loan rates move higher. And the trend isn't likely to end anytime soon, as the Treasury will have to continue to pump out major supply of Bonds, in order to pay for the massive government stimulus plans...and the Fed buying plan simply won't be enough to balance out supply and demand - it's like trying to sop up a flood with a sponge. Bottom line - rates are likely to rise, but are still near historic lows.

Yet the news wasn't all doom and gloom - as both the Dow and S&P 500 have seen three months of positive gains for the first time in over a year! And the National Association for Business Economics (NABE) said that the end of the recession is in sight, noting that, "While the overall tone remains soft, there are emerging signs that the economy is stabilizing." The Commerce Department's report that Gross Domestic Product for the first quarter fell at an annual rate of 5.7% was better than initial estimates, indicating the recession may be slowing down. Important reminder: An improvement in the economy will likely push rates higher over time, which is why it's important to take action during this opportunity of low rates.

In other news, Initial Jobless Claims were better than expectations, but a higher revision to the prior week's reading offset the slightly positive headline number. Durable Goods Orders in April also came in a bit better than expectations. On the housing front, while New Home Sales were just under estimates, Existing Home Sales came in higher than expectations. These reports didn't impact the markets a great deal last week, as the impact from all the extra supply was the real mover and shaker.

Bonds were able to regain some ground Thursday and Friday after their steep free fall on Wednesday, but even with the improvement, home loan rates ended the week .25% to .375% worse than where they began.

So when are we at the best time to buy again. Just before the loan rates get stiff? Not after they go up significantly! Where is that point for you?

Keith

Good market info from Mint

2009-05-27T12:54:00.001-07:00

So you want to know ... "how bad is it"

Or "when are we at bottom so we can by"

We don’t recommend you try to time the housing market but, if you’re in the market for a new home, it helps to pay attention to its cyclical nature. When times are hard, prices drop and the market...

at the Mint web site
http://www.mint.com/blog/finance-core/mint-map-real-estate-by-state/

A interesting read. I think the turn around will start seriously happening when the lending community gets back into the real estate and other business lending. While they stay on the sidelines hording cash the flow is restricted.

If you can get a loan to buy you can be in the driver's seat! It is all up to your FICO score and your dependable paycheck to be a buyer in today's home market.

Can you get funded? Do you need a lender referral?

Ask.

Keith

2009-05-19T08:54:00.000-07:00

"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW." Og Mandino.

The various financial markets took those words to heart last week, with plenty of action ranging from economic reports to interesting announcements from the government, related to homebuyers.

On the economic news front, the headlines were mixed. On the disappointing side was a worse than expected Retail Sales Report, which showed that consumers are continuing to tighten their purse strings. Not entirely surprising, but it did mark the eighth decline in the past ten months for Retail Sales. Initial Unemployment Claims were also reported worse than expected - which some said were due to massive Chrysler layoffs - but still was disappointing after there had been some recent signs of improvement in the labor markets.

However, there was positive economic news as well, including improved readings from the manufacturing sector, as the New York Empire State Manufacturing Index improved for the third month straight. Consumer Sentiment was also better than the previous reading and the best since September of last year. So although the consumer isn't out spending money with abandon just yet, this report shows that most folks are indeed starting to feel better about the economic outlook, likely due in part to the values of their investment accounts improving as Stock values move higher.
the government got in on the action, with the Department of Housing and Urban Development's Federal Housing Administration making a very interesting announcement that ultimately appeared to be slightly premature. They announced a new plan to allow first-time homebuyers to use the Federal tax credit of up to $8,000 for a down payment at closing, rather than making buyers wait to receive the benefit after the fact at tax time. However, no details or logistics of how this will actually work were released, causing them to actually pull some of the industry announcements as they regroup to provide more details. This could be great news for first-time homebuyers, who are slated to account for 53% of home purchases in 2009. I want to learn more on this. On my first read it is a save now and pay it back later program.

Bonds and home loan rates were able to make some improvements in the early part of the week as weak economic reports caused money to flow from Stocks into Bonds. And while Bonds lost some ground on Friday, home loan rates still ended the week slightly improved from where they began.

The week ahead is sure to be just as action packed as the last, including a read on the housing market via Tuesday's Housing Starts and Building Permits report. And given last week's worse than expected Initial Unemployment Claims report, this Thursday's updated number will be one to keep an eye on.

Are your fingers crossed?

Builder types... Look at 3448 Colonial Ave

2009-05-05T20:51:00.000-07:00

Rebuild and Fix this house!
If you know where Mar Vista is in Los Angeles then maybe you will know that this little house is at a deeply discounted price. And if you happen to want to build or fix up a property then this may work for you.

Seriously fire damaged. Listed for $600,000 and needs to be rebuilt. Are you an Investor/Builder?

Possibly 100 to 150 thousand to re due as a 1 story house,
and maybe 250 to 300 thousand to re due as a 2 story house.

When complete a real deal for this neighborhood.

Find more information and see photos at www.3448Colonial.com

There has been a lot of interest. It has been on the market for 5 days now. I have been running fast to show it as much as I can. Getting the word out to all the local sources.

This one will not last. Not at this fire sale price.

Keith

There is a Season...

2009-04-20T10:46:00.000-07:00

TO EVERYTHING (EARN, EARN, EARN)...THERE IS A SEASON (EARN, EARN, EARN)... That's how Pete Seeger and The Byrd's famous 1962 hit, "Turn, Turn, Turn" could be rewritten for the financial markets of late - earnings season kicked off last week, with several reports delivering music to the economy's ears.

Last week, the week began with the sweet sounds of investment banking giant Goldman Sachs reporting earnings that were much better than expected. More good news from the financial zone followed, with better than expected earnings from JP Morgan Chase and Citigroup. As you can see in the chart below, the financial sector has clearly been helped by the recent mark-to-market discussions and easing of the FASB ruling. In other sectors, big players Google and General Electric also reported earnings that were higher than anticipated.

And more good news last week, as Fed Chairman Ben Bernanke sang out that there are signs that the sharp decline in the economy is slowing, indicating a potential "first step" towards a recovery from the worst recession in a generation. Specifically, he said, "I am fundamentally optimistic about our economy. Today's economic conditions are difficult, but the foundations of our economy are strong, and we face no problems that cannot be overcome with insight, patience, and persistence." While last week's Retail Sales Report came in lower than expected, indicating that consumers are still keeping a good grip on their wallets - Bernanke's words certainly inspire some economic confidence.

Confidence for the Banking Industry may now help loosen up the lending side a little. Now that new mechanisms’ are in place for lenders to qualify buyers under the best FICO scores are sought after. They will receive the best new financing.

There are some buyers out there. There are some realistic sellers who recognize the market has changed. Now then, are the lending sources ready?

Get your lending set up soon. The time to find a good property is soon at hand.

IMHO Keith
310-391-0821

? TEA ?

2009-04-16T09:05:00.000-07:00

T E A, as in Taxed Enough Already!

Funny stuff. And last night we had a Dinner at a "Form 1040" party. The price of the meal? You guessed it... $10.40

I posted a few shots of the TEA party mob out on the streets in Santa Monica yesterday on Facebook. The people can make a difference. Like Prop 13 !

See:
http://online.wsj.com/article/SB123975867505519363.html

A financial turning point?

2009-04-06T11:10:00.000-07:00

The March 12th Congressional hearing on mark-to-market (Financial Accounting Standards Board's (FASB) favorable vote to relax accounting rules), which will help to warm up the frosty credit markets, Stocks have risen 23% just on the speculation a change could be coming. And just one short day after the FASB mark-to-market ruling, there were stories of banks already saying they may not need to sell assets to raise capital, as they will no longer have to take massive paper losses by pricing their assets to the "fire-sale" comps that were created in some of the illiquid markets. Capital ratios are now more in line for many institutions, which will also help their ability to lend - in turn helping consumers and businesses alike. Yesterday's ruling is a dramatic step towards unwinding the negative spiral created by mark to market, and in fact, the ruling on mark-to-market accounting could well go down in history as a turning point in the US financial crisis.

While Stocks were buoyed by the Mark-to-Market announcement and optimism that the G20 meeting in London will lead to an agreement on ways to pull global economies out of the current recession, Bonds were unable to hold onto recent gains. As a result, Bonds and rates ended the week .125-.25 percent worse than where they began. Therefore interest rates for loans may start to creep upward.

Are we nearing the bottom? Do we all see that light ahead? It is the end of the tunnel?

Are you optimistic about Real Estate values in the future now?

Keith
310-398-0821

Olympic West - Pico East Initiative

2009-03-25T11:57:00.000-07:00

Would this change to the traffic to and from the westside help?

Olympic West - Pico East Initiative is important. Will you remember which one is the One way in the direction you want to go? Will all the residents in the middle have the traffic on their streets double or Quadruple? Will all those small businesses along the way get hurt by this?

FYI
The City of Los Angeles is hosting three public scoping meetings on the proposed Olympic West - Pico East Initiative in accordance with the California Environmental Quality Act (CEQA). The purpose of the meetings is to receive public comments regarding the scope of the environmental analysis being prepared for this project.

Wednesday, April 1, 2009
6:30 p.m. - 8:30 p.m.
Westside Jewish Community Center – 5870 West Olympic Boulevard, Los Angeles, CA 90036

Thursday, April 2, 2009
7:00 p.m. - 9:00 p.m.
Temple Beth Am – 1039 South La Cienega Boulevard, Los Angeles, CA 90035

Tuesday, April 7, 2009
6:30 p.m. - 8:30 p.m.
Stoner Recreation Center – 1835 Stoner Avenue, Los Angeles, CA 90025

Public Comments
During the public scoping meetings, anyone wishing to comment will be able to do so via written comment forms or public testimony.

Opportunity at hand? Now? Or soon?

2009-03-24T09:55:00.000-07:00

"IF A WINDOW OF OPPORTUNITY APPEARS, DON'T PULL DOWN THE SHADE." Tom Peters.

On Wednesday, the Fed announced that over the course of 2009, they will purchase an additional $750 Billion of Mortgage Backed Securities, as well as $300 Billion in long-term Treasuries, primarily to help shore up the housing market and keep home loan rates low. On the announcement, Bonds exploded higher, leaving Bond prices within whiskers of the best levels ever.

However, it's important to understand that while their actions may keep a lid on rates moving higher, they may not cause them to move lower. While we know there is little inflation at the present time, the chatter of future inflation could have a negative impact on Bonds and home loan rates, or at least stifle any improvements.

Although the media is already spinning it differently, this may not be a time to stay on the fence, hoping and waiting for lower rates and/or lower real estate prices. Home loan rates remain within inches of all-time historic lows, but may not necessarily move significantly lower based on this purchasing plan - waiting is a very risky move.
More good news last week, as Housing Starts for February came in better than expected and actually increased for the first time in eight months. In addition, Fed Chairman Bernanke stated the recession should end in 2009 and that he is confident of the long-term outlook for the US economy.

Also, an update on Mark-to-Market - the accounting rule which has had a devastating impact on the financial markets - which we have discussed many times, including in last week's issue. The Financial Accounting Standards Board (FASB) agreed that it will propose to allow companies to use more "leeway" in applying the accounting rules they use to value their assets, and planned a final vote for April 2nd. If this rule change is approved, it could result in better first-quarter financial statements for companies that have been affected by this rule. Stocks have been moving higher lately in the hopes that Mark-to-Market will be fixed, and a resolution could help Stocks further improve.

So what are you going to do with your Cash? Leverage into cheap priced Real Estate or buy Stocks?

If it is Real Estate call me.

Keith
310-391-0821

BTW If you need a referral to a Stock person send me a note.
Gary with Wealth Pinnacle is a very good guy to know.

Elections in Los Angeles - No on B

2009-02-24T10:43:00.000-08:00

At election time I allow myself to make recommendations. I feel that the City/State/Federal regulations and taxes affect your and my real estate and are therefore fair game for this blog.

Many times the best vote is NO on many things. It only should be Made Law or funded for the public good IF it is overwhelmingly agreed on as needed and worth it.

So that said, please see these two links. After reviewing them, you too will agree Measure B should get a NO vote.

The Cover Up Continues
http://www.citywatchla.com/content/view/2034/

and

Union Members: Solar Plan Not Cost Efficient
http://www.citywatchla.com/content/view/2035/

RE vs Paper

2009-02-21T09:55:00.000-08:00

OK so Real Estate has gone down some. Lets talk about income properties. Not the average Single Family Home type of real estate.

Compared to the over valued paper being peddled by wall street for years, it is rather secure.

http://www.latimes.com/business/la-fi-commre20-2009feb20,0,4393076.story

This story says Commercial Properties are down 15 %
and that Apartment Buildings are down 11.5 %
in the nationwide averages.

Not bad compared with all that stock market stuff.

Just read your last 401 K report and compare the amount you are down. Then think about how much you are diversified if it is all with a Fidelity account or E-Trade. No matter how much it is spread around in the stock market it is still the stock market. Some needs to be in a performing real asset like an apartment building if you want a secure long range future.

With today's prices now in a bit of a "Market Dip" it may be possible to use your cash to pick up a sound investment for your future.

By the way ther are a few small apartment buildings in the local market for those who want to be "owner users" by buying 3 or 4 units and living in one. This is a good first step to long term financial security.

Call me to review those options.

Keith Lambert
310-391-0821

AVOID THIS COSTLY MISTAKE - waiting

2009-02-09T11:26:00.002-08:00

You can NOT time the exact bottom of the market.

If you've been following the financial news, you've probably heard that the Fed's been buying Mortgage Backed Securities and will continue to do so as needed. Unfortunately, some media outlets have picked up on the news and mistakenly reported that these purchases will continue to cause rates to drop lower into the summer.
But is that really what it means? No.

The truth is, the Fed has been buying Mortgage Bonds. BUT... more precisely, they're buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools the Fed is buying hand over fist are likely be refinanced and paid - because current rates make it very attractive to refinance a loan over 6.0% - and thus giving the Fed a quick recoup on some of their investment.

Bottom line: The Fed's purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

The Problem Is...

Many consumers are in situations where they can refinance now and save hundreds of dollars a month on their mortgage payments. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they're waiting, rates could turn higher - and this window of opportunity could pass them by entirely.
Here's the Clincher.

Even if consumers are ultimately able to time the market perfectly and save another few bucks per month, they could still end up losing. That's because while they delayed, they lost the savings each month they could have gained by taking action sooner. In other words, they may have lost hundreds of dollars for every month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity by either waiting or misunderstanding the media headline. Let's talk further on this.

If you are refinancing I can refer you to a good loan source. If you are looking to buy a West Los Angeles area home or investment property I want to offer my services to help you avoid costly mistakes. Lets review your goals and get you moving to reach your financial goals.

Keith Lambert
310-391-0821
www.REList.net

Looking into a crystal ball? Economists Predict

2009-01-27T21:12:00.000-08:00

Economists Predict Recession's End
As posted by Austin Kilgore | 01.23.09

The country's recession is the longest and deepest in 60 years, but it will rebound in 2009, according to two economists at the Comerica Bank Economic Forecast Conference in Santa Clara, California.

Comerica Bank's chief economist Dana Johnson told approximately 600 Silicon Valley business leaders, “We should see at least a 6 percent increase in gross domestic product in the third quarter. I don't think it's at all a stretch to say that once the economy picks up steam, it will be really impressive.”

Another economist at the conference, Stanford University's John B. Shoven, agreed, but said he believes the rebound will happen in the fourth quarter of 2009.

He added as soon as investors realize the economy will strengthen in 2010, “the stock market could start to rally in the second quarter,” several months ahead of the recovery.

They both credited the economic stimulus actions taken by the U.S. Government from preventing disaster.

Johnson said, “We came within an eyelash of a catastrophic failure of our financial system.”

The economists said while President Barack Obama has surrounded himself with a strong team of economic advisors, the government won't be able to do much to prevent the unemployment rate increasing to 9 percent by mid-year.

However, Johnson said, “The federal fiscal stimulus headed our way beginning this spring...will do an enormous amount to get this economy going.”

http://www.dsnews.com/index.php/home/news_story/2459

It is a hard time to complete a purchase with the time it takes to get approved and funded for a loan in this stressed environment. Staffs are less. Funds are less. The rules on reselling the loans are more stringent from Freddy and Fannie. Bankers have to work harder. So must we RE agents. And you too as a buyer. But it can be worth it.

So if you want to buy some affordable property before 2010 we need to get to work.

Keith L.
www.REList.net

Looking at the Bigger picture of Loan rates

2009-01-26T10:38:00.000-08:00

The Financial situation This Week

Inflation chatter could come around again this week, as the Fed will be holding their regularly scheduled meetings on Tuesday and Wednesday, with their Policy Statement and decision regarding the Fed Funds Rate coming on Wednesday. Remember, the Fed made history last month when they slashed the Fed Funds Rate by .75% to the lowest target range in history of 0% to .25%. The chart below shows an interesting history of the Fed Funds Rate since 1955.

Other potential market movers include Friday's Gross Domestic Product (GDP) Report. GDP is the broadest measure of economic activity, and given the state of our economy, a negative report might not be too much of a surprise. In addition, Thursday's Durable Goods Report (i.e. items that are non-disposable, like cars, furniture, appliances, games, cameras, business equipment, etc) will give us a read on consumer and business consumption and buying behavior. We'll also get a look at the housing market this week with Monday's Existing Home Sales Report and Thursday's New Home Sales Report.
Remember: Inflation is the arch enemy of Bonds and home loan rates, and even the mention of it can have negative ramifications.

I recall the early 1980's and the high interest rates. That was very hard time to be buyer. And a miserable time to be a seller. So why is it hard to be a buyer or a Seller today? Because the lending sector has not gotten back on the horse yet. They have to pick themselves up and dust off and get back in the saddle. The funding of loans is still the crux of the financial turbulence we are struggling to overcome.

The Heat is On for Mortgages.

Homes are on sale, sellers are motivated, and interest rates are at historic lows...but may not stay that way, which means it makes sense to get moving on that home purchase or refinance you've been contemplating. But if you (as one of my clients) are among the smart individuals who are going ahead and taking advantage of the low home loan rates to be had right now, there are a few things to be aware of.

With interest rates at record lows, all lenders in the US have recently seen a sharp increase in loan applications - right at the time that many lenders have cut headcount to save money in a challenging economy. This means that timeframes needed for underwriting, approvals and closing have become longer than normal. Some companies have chosen to actually raise rates just to slow down the volume to a manageable level.
Sound crazy? No crazier than when you go to buy that hot new vehicle...only to find that there is no price negotiation. In fact, you wind up lucky to just pay the sticker price, as the demand usually allows the Dealer to add a markup to the price. And you don't get the car right away; you have to wait on a list for your turn to come up.

Right now, home loans are like that hot new car - but with the timer ticking on interest rates locks, there are a few things you can do to protect yourself.

First, longer lock in time frames than might normally have been considered are a necessity, to ensure that the file has time to be processed, underwritten, approved and closed in time to protect the rate lock in this extremely volatile climate. And that longer, safer lock-in period may be a bit more costly - but it's money well spent. Overall, the mind set here should not be one of greed. Don't try to squeeze every last drop out of rates. If you are within a quarter percent of the lowest rates offered in the history of this country, you did very well. And rates always shoot up higher at a much faster pace than when then dip lower. So if the savings or opportunity make sense - grab it.

Next, responding quickly to requests for information or documentation is important - the faster the file is submitted and approved, the better off we are to keep that great interest rate protected.

Finally, be aware that it may be a smart idea to pay points to gain the best interest rate - and sometimes is even necessary in today's market. Giant mortgage buyers Fannie Mae and Freddie Mac have recently imposed more "risk-based pricing adjustments", meaning that even credit scores and loan to values which in the past would have been considered very low risk, may now be subject to mandated fees by Fannie and Freddie. And based on the way lenders have changed their rate sheets over time, there is now very little "premium pricing", which used to allow options for fees like these, points or other closing costs to be covered in return for a slightly higher interest rate.

Right now is still an excellent time to act, before the great low rates of today get away from us. But let's be smart - get started right away on your Loan Approval process.

Keith Lambert
310-391-0821

Best deal on the Beach

2009-01-22T11:18:00.000-08:00

While out looking in Marina Del Rey and Playa Vista for Townhomes we found this really great unit down in Play Del Rey. With the market as it is and the price they now are asking for this unit... I think it is a dream property for the right person.

I shot a small Video of the view from the balcony.

White water views of the beach for under a Million Dollars is a relatively new for this part of Los Angeles.

Keith L.
310-398-3272

Rental Property Information - High End Apartments

2009-01-20T21:54:00.000-08:00

Wow! Good stuff ... Two new places are available for those of you who appreciate the finer things in life.

Beach side apartment - 2 bedrooms.
Ocean Ave. in Santa Monica

and

Fabulous secluded Guest House - 1 bedroom
North of Montana

Follow the links to see the photos and read more about these two high end rentals. Send the link to any of your friends that may be looking for quality places to live.

Sincerely, Keith L. <"><
www.REList.net

This Too Shall Pass. New season will emerge!

2009-01-19T09:00:00.000-08:00

The Seasons Change. The President Changes. (Tomorrow!) So this quote is on point:

"LIVE EACH SEASON AS IT PASSES." Henry David Thoreau.

In the Markets: Last week saw the start of earnings season for the fourth quarter of 2008, and this is likely to be one earnings season everyone hopes passes quickly.

The beleaguered banking sector was in the spotlight throughout the week, as Citigroup reported an $8.29 Billion loss, completing its worst year ever since its inception in 1812. Bank of America also lost $1.79 Billion in the fourth quarter, making 2008 the bank's first yearly loss in 17 years. And the news extended overseas as Deutsche Bank, which is Germany's largest bank, warned of a fourth-quarter loss of $6.3 Billion.

There were a few bright spots to note during the week, however, as JP Morgan Chase surprised the market with an earnings report that beat expectations...it's been awhile since a financial Stock actually surprised to the good side! In addition, Bank of America received a lifeline of $138 Billion from the government's $700 Billion rescue fund to help absorb their purchase of Merrill Lynch.

And in inflation - or lack thereof - headlines, the Consumer Price Index for 2008 was reported the lowest since 1954, indicating that inflation is definitely not a threat at this time.

Lending it the part that needs to be resurrected in time to keep the wheels of commerce and the real estate industry moving ahead. They have changed many of the systems in recent months to enable the resale of loans to happen in new more scrutinized fashion. But that also has other troubles for the not so standard property. If it does not fit the forms and the standard check boxes of the new resellers marketing program, it will not qualify for a loan and therefore further depress the real estate market with unsellable inventory clogging the marketplace.

As I learn more on the lending situation I will post the details.

For now, lenders are requiring serious cash for your down payment on a home or income property. No lender wants to see a property go upside down on a further drop in value. But likewise for the Contrarian among us it may be a good time to pick up a cheap deal.

Glad to be of help.

Kieth
www.REList.net

1 bedroom Condo in Playa Del Rey

2009-01-12T10:43:00.000-08:00

1 bedrooms are not great for the highest resale but as a cheaper alternative to living in an apartment it can be a very good deal after you see your tax accountant.

Anyone who owns their own home knows that the game is rigged. You've got to have a First Trust Deed to get ahead in the USA. That is why there was so much pressure to make home ownership more available a few years back... That's another story.

But a nice very livable unit here on the west side just crossed my desk with a nice price reduction. Say you can do a 60k down. Would you be OK with a monthly of $1,485 on your first trust deed. Most of that is interest and would be given back to you on your tax return. That reduces your cost of housing to very low. HOA and utilities and a little principle.

What the heck are you waiting for? For the stock market to go up?

If you want to see the cheaper stuff that makes a good deal Call me.

Keith L.

Good weekend showing property

2009-01-12T09:44:00.000-08:00

FYI, Those who still have the cash to be in the buyers seat are still looking.

I was helping a client look at homes this weekend. It is almost a miracle for there to be ocean view options in the market range that just a few years ago was out of range. Sometimes you find a diamond in the rough. I think we did.

Other market changes is that it is much more work for us agents to get the loans and the deal closed but that is OK. We get to earn out living.

Keith L.
www.REList.net

Time flies like an arrow. Fruit flies like a banana.

2009-01-05T12:39:00.000-08:00

Logic and Illogical stuff make a great pun.

But it makes for a bad lending situation. I received a mailing from a big bank looking to get more customers. So I call this big lending institution. And after reviewing a lot of their details they had 7 ways to pre-qualify the borrower and another 5 qualifications on the property.

Mostly they say that they want to loan. But in reality they only want to loan to the bigger, better and most cash heavy guy that is ready to pick up on the best deals. No small loans. No loan to the guy that is new to buying income properties. Must have X and Y and Z. Or else they will not give the letter of interest to even make an offer to purchase with.

Makes me appreciate the good loan brokers that I work with all the more. Some money is still out there to fund the deals. Just need to get it form the lenders that are finished shitting there pants from the wall street problems and is ready to get back to work. There will be 1/3 fewer loans made. But we all need to keep making the wheel turning. Those who buy when the times are tough make the biggest killing.

If you have enough capital available to get in and play when the lenders on apartment buildings want 35 % or more down, then lets talk.

Keith Lambert
Residential Income Property
310-391-0821

Will our American Business' Leaders ever learn?

2008-12-19T19:05:00.000-08:00

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 http://blogs.bnet.com/ceo/?p=1576 "When Will We Ever Learn?"

It is short and covers the topic well.

Keith L.

Property on Brokers open. Not so hot.

2008-12-17T08:30:00.000-08:00

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???

Keith

Market conditions overall - good for loans

2008-12-16T19:24:00.000-08:00

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.

Keith
310-391-0821

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

2008-12-09T09:25:00.000-08:00

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.

House for rent 2 Bedroom 1 Bath + Den

2008-12-04T22:58:00.000-08:00

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!

2008-12-04T11:41:00.000-08:00

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
http://money.cnn.com/2008/12/03/news/economy/treasury_mortgage_rates/index.htm?postversion=2008120319

How long will the recession last?
Longer than past downturns, and Wall Street's meltdown will slow the recovery…
http://money.cnn.com/2008/12/03/news/economy/karydakis.recession.fortune/index.htm

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
www.REList.net - Go to this site to start your Search!

What direction... Moving to where with your $

2008-11-25T10:10:00.000-08:00

"THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes.

And what direction is our economy moving?

After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.

So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the "D" word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road.

On the inflation front, last week's Producer Price Index indicated that wholesale inflation plummeted last month - by the most since records began in 1947 - largely due to declines in energy prices. In addition, the Consumer Price Index showed that inflation at the consumer level fell by a record 1.0%, thanks again to lower costs of energy.

When it comes to the direction the economy is heading, the week did end with some hopeful news. Federal Reserve President Jeffrey Lacker said that an economic recovery could begin in 2009 as low interest rates, low energy prices, and less drag from the housing sector may shore up spending. In the meantime, Bonds and home loan rates spent much of last week trading near a key level of technical support called the 200-Day Moving Average, finally moving and staying above this level on Friday. As a result, Bonds and home loan rates ended the week unchanged to slightly better than where they began.

Secure Rents make investing in Apartment buildings, in the best areas of Los Angeles, a great option if you have the cash. If you do not want to just keep it in cash and want to get in on the Buyers Market we are in. And definitely if you are thinking to hold longer then 5 years, you really will do well in this market.

IMHO Keith L.
310-391-0821
Keith @ LambertInc. com

(remove spaces to use above email)

Wow. Under $500,000 for a house on the Westside!

2008-11-18T11:53:00.000-08:00

Run to see this one.

Call me to make an offer Soon. It will not be here next week.

"Trust Sale as is,where is, with no warranty express or implied."

In 90066 zip code. For sale for $484,000. "OMG" you say! "Yep!" I say.

Read more... "Absolutely charming home w/loads of potential. High pitched roof, archways, & hardwood flooring add to the character & appeal of this home. 2Br+den, large lot, long driveway, grassy yard w/trees for shade, concrete pad in backyard, & playroom/workshop attached to garage provide plenty of practical options to make this your dream home. TLC required..."

Call or email me to hear more and get the address.

And Yes I would love to help you write an offer.

Keith Lambert
310-398-3272
keith@REList.net

Can we find some holiday cheer? Please?

2008-11-17T10:16:00.000-08:00

“NOBODY LIKES THE BRINGER OF BAD NEWS."
- Ancient Greek playwright Sophocles.

Last week was far from quiet as financial markets reacted to several pieces of bad economic news brought throughout the week.

The week began with the news that Circuit City filed for Chapter 11 Bankruptcy, and will be closing 150 stores - and this in advance of the holiday season, when most retailers make a larger portion of their profits for the year. Department store Nordstrom reported its growth rate is down 16%, where they were expecting an increase of 10%. Poor economic reports from Best Buy and Macy's followed a few days later, as well as lower future earnings guidance from Wal-Mart and Intel. As if the headlines of the week weren't enough, Friday's Retail Sales report showed that overall retail sales fell for the fourth straight month and plunged to their worst level since record keeping began in 1992. Looks like a pretty dismal holiday shopping season ahead...probably the worst that retailers will have seen in a long, long time.

In addition, there was bad news for the automobile industry as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0. As a result, General Motors stock fell below $3 for the first time since April 13, 1943. Interestingly enough, the automaker was not even making cars at that time but producing only military equipment for WWII.

And the bad news continued on the job front as well, as the Initial Jobless Claims report revealed the highest number of first time unemployment claim since 2001. In addition, Continuing Jobless Claims reached their highest level in 25 years. Remember, poor economic news and a weak labor market usually cause Bonds and home loan rates to improve. This is because fewer jobs and lower confidence about keeping or finding work causes people to spend less. In turn, businesses and retailers lose pricing power, and this is a cycle that keeps inflation - the arch enemy of Bonds and home loan rates - at low levels, especially if oil remains near present reasonable prices.

However, despite all the bad economic news of the week, Bonds and home loan rates were unable to make significant improvements this week

So what do we make of all this? Just look at the big adverts from a very famous local version of "The Donald" with big color adverts on multiple pages saying "I'm Buying" and looking to make a few big deals while he has cash and most do not.

Yes there is uncertainty. But there is certainly more to be made in the Income Property realm of investing than in today's stock market.

IMHO Keith L.
310-391-0821

Just after Halloweeen and just before the Election

2008-11-03T10:56:00.000-08:00

Are we finished being scared yet? LOL

The Financial Market in the news...

“TAKE TIME TO DELIBERATE; BUT WHEN THE TIME FOR ACTION ARRIVES…STOP THINKING AND GO IN.”
- Napoleon Bonaparte.

Taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%.

Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed's lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil…and gas prices, in turn…from skyrocketing again.

Another reason the Fed took action: The Fed’s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week’s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001.

So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .125-.25% worse than where they began.

Very few income properties are on the REO (Real Estate Owned by a bank) lists. Unless you go to areas like Henderson NV or Plamdale or Chula Vista where the rental of units has a very low revenue base. If the rents drop so that you can not make the mortgage... and/or the buyer is unsophisticated (or corrupt)giving a investment property back to the bank is very rare.

Amateur speculation in the single family home rental market is another matter.

Time will tell. Sound Investing in positive cash flowing income properties is what I recommend. Loan rates are good now. But for how much longer?

So to whoever wins the White House tomorrow, may God bless your political advisers with some great insight and clear vision.

Because of the down economy I am making a strong recommendation that you vote NO on any bond item on the ballot tomorrow. We do not have the excess state/county/city revenues to handle more debt now.

My 2 cents.

Keith L.
www.REList.net

Manic Monday for those in the financial markets

2008-10-28T09:48:00.000-07:00

"JUST ANOTHER MANIC MONDAY..." lyrics from The Bangles.
And last week wasn't just another manic Monday, as the markets were wild the entire week. During the past two months in the stock market, there have been 19 trading days with a 3% move. It had previously taken 6 years to see 19 days with a 3% move.
Bonds and home loan rates began the week with a strong rally on news that the world's largest Bond Fund, PIMCO, raised its stake in Mortgage-Backed Securities to its highest in over seven years. Also helping Bonds and home loan rates break above important technical levels were poor earning reports by companies like DuPont, Texas Instruments, Merck, Wachovia, and Boeing.
However, the gains were short lived as both Stocks and Bonds worsened on Friday after heavy selling took place in Asia and Europe. The waves of panic selling started in Japan due to weak earnings reported by Sony and Samsung, then spilled over into the UK as Britain's economy shrank for the first time since 1992, signaling a recession.
And while a strong sell-off in Stocks would typically cause money to flow into Bonds, helping Bonds and home loan rates improve, there is currently a bit of a departure from the normal "see-saw" trading you may typically see between Stocks and Bonds. This is occurring because securities must be liquidated to raise capital. In an effort to offset margin calls, all securities are being cashed in. Additionally, fear from individual investors, where people throw in the towel and want to get out of the market, is creating massive redemptions from fund managers. Despite the continued volatility and massive action of the last week, Bonds and home loan rates ended the week very close to where they began.

So what does this mean to you? Loans are available. You just need to qualify for them and have a real downpayment. Just as always in the income property and Apartment building market.

Banks are not foreclosing on apartment buildings. Apartment owners are enjoying a steady stream of cash flow and income from their investments.

Remember the old saw about not putting all your eggs in one basket. Hope your nest egg was not in the Wall Street basket.

Do you need a good dependable Real Estate investment?

Keith L.
www.REList.net

Wall Street or Beer?

2008-10-06T13:10:00.000-07:00

If you had purchased $1,000.00 of AIG stock one year ago you would have $44.34 left.

With Wachovia, you would have had $54.74 left of the original $1,000.00.

With Lehman, you would have had $0.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago & drank all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214.00 cash

(Disclosure this came from a boating friend. And I think his annual beer consumption is over $1,000 per year.)

School work and real learning...

2008-09-29T08:58:00.000-07:00

My son is off to school this Monday morning with a big report on Will Rogers.

An American icon of his age. An age of strife and turmoil like these past few weeks and months we have been experiencing here in this election/bail-out/lingering war/fuel price/sagging real estate value/job crunch days we are now living in. One of the above probably affects you more than the others.

These quotes seem to have landed in my email this morning with relevance:

I don't make jokes. I just watch the government and report the facts.
- Will Rogers
I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.
- Winston Churchill
A government which robs Peter to pay Paul can always depend on the support of Paul.
- George Bernard Shaw
Democracy must be something more than two wolves and a sheep voting on what to have for dinner.
- James Bovard, Civil Libertarian (1994)
Giving money and power to government is like giving whiskey and car keys to teenage boys.
- P.J. O'Rourke, Civil Libertarian
The ultimate result of shielding men from the effects of folly is to fill the world with fools.
- Herbert Spencer, English Philosopher (1820-1903)
A government big enough to give you everything you want, is strong enough to take everything you have.
- Thomas Jefferson

So will the politicians in Washington DC really learn that it is folly to support Wall Street for failing to properly declare on the financial reports a bit of reality? Is the legislation on the floor that is about to be voted on change anything? Not likely.

The investments being propped up were not properly disclosed as to risk levels. So now the US Government will take on the risk and prop up the financial sector. All due to the investors not willing to do their school work and research the products. The market forces. The implications of bad choices. Or to live with the results of bad actions/choices/risky chance taking.

Like a school kid who gets a D or F grade and wants Mom and Dad to do something to make it alright and the complacent teacher allowing the kid to weasel out of it. That is what this bailout looks like to me.

Real learning takes place when you feel the pain of your bad choice.

IMHO Keith L.

Tell them "No thank you!" to flushing our money

2008-09-26T12:43:00.000-07:00

I am so much against this pushing of the problem off onto the average American Tax Payer. The investments they (Wall Street financial rocket scientists) were overvaluing had risk in it. Almost any real estate agent with more than a couple of years experience could see it a mile away. Too many properties with overly leveraged loans packaged up and sold as if they were the old type of fully secured loan.

What any savvy investor would ask about an individual loan they were going to buy these financial whiz kids were unwilling to ask or peek under the hood to see. Even State bonds have a rating system. So why not a rating to the loan pools? Because they wanted to screw the next investor. The buyer beware thing. The US government is the next biggest fool if the buy into this stuff.

Buying stocks has risk in it. Setting sail on a ship has risk in it. If you cannot take that exposure to risk then you buy insurance. And Pay to protect yourself from that risk.

No! The federal government should not take on the risk for no reason.
Please do not make us the Next Biggest Fool.

I'll take my "Bear Mkt"burger with no cheese please

2008-09-22T10:29:00.000-07:00

Bull market is about to dump all over us and the Bear Market will eat you up if all you have is stocks. Is the US bailout going to help? Should it even try to help?

In a news email I receive...

"THE PATH TO SUCCESS IS TO TAKE MASSIVE, DETERMINED ACTION." Anthony Robbins. And success in stabilizing the markets and the economy is exactly what the government is hoping will happen as a result of the massive, determined actions they took late last week in response to unprecedented happenings in the financial markets...

I am so much against this pushing of the problem off onto the average American Tax Payer. The investments they (Wall Street financial rocket scientists) were overvaluing had risk in it. Almost any real estate agent with more than a couple of years experience could see it a mile away. Too many properties with overly leveraged loans packaged up and sold as if they were the old type of fully secured loan.

What any savvy investor would ask about a individual loan they were going to buy these financial whiz kids were unwilling to ask or peek under the hood to see. Even State bonds have a rating system. So why not a rating to the loan pools? Because they wanted to screw the next investor. The buyer beware thing. The US government is the next biggest fool if the buy into this stuff.

Buying stocks has risk in it. Setting sail on a ship has risk in it. If you cannot take that exposure to risk then you buy insurance. And Pay to protect yourself from that risk.

No! The federal government should not take on the risk for no reason.

That is My Two Cents.

The Political reaction that "Something Must be Done" is hogwash.

I'll take my "Bear Mkt"burger with no cheese please. Give it a Reality Check!

I recommend the "risk" of a 10 to 20 % temporary dip in real estate values to the big time losses that many are experiencing in wall street stocks. Sorry for your loss and pain. May I offer you a dependable income property to ride for long term security?

Call me to talk about an Income Property with a dependable rental stream to support your retirement over the long term future.

Keith
310-391-0821

Market is not a big Train Wreck

2008-09-16T11:29:00.001-07:00

"Treasury Secretary Henry “Hank” Paulson on Sunday: no more federal bailouts...
Finally, someone has hit the brakes where they need to be hit. The federal government and taxpayers such as you and I can’t go bankrolling or brokering the mistakes of Bear Stearns, Countrywide Financial, Fannie Mae and Freddie Mac."

OK, so as long as lenders can make a real loan to a real client and the terms are not outrageous we are going to have support for real estate values.

So relax a little. Do not think that you must have a heart attack. Take a bigger view of this correction.

Buy in if you plan on holding 3 or more years. If you are a flipper... Well then you had better be able to do it cheaper and better than the stuff on the market.

If you are a small family there are deals! Probate and REO properties that are there for the fixer upper type family. And some are over here near the beach! It is easy to get them in areas where the market is in the tank. (riverside down 20% or more) Here in the West Los Angeles areas like Marina Del Rey, Palms and Mar Vista there is little downturn in value as the market still has demand and workers/executives earnings are still holding.

Today on broker caravan is a probate for $775,000 in a area surrounded by homes well over $1,000,000 to $1,800,000. But who can support living in a $775,000 home while fixing it up?

If that is you... Call me quick. It may not last long.

Keith L. <"><
310-391-0821

What is a good deal today... SFR or Spec

2008-07-21T10:43:00.000-07:00

Mar Vista has a few deals. there are some good ones that are on the west side of the Mar Vista Hill. It is totally amaising that the ones on the other side of the hill with some city views are going for such hugue prices even in this down market. Even on high traffic streets like Palms. (near Grandview)

So on the SFR deal of the week... The one that I do not think will last long is 13129 Lake Street. At only 775,000 it is just above the lot value. the home has great bones and floor plan that is workable. A front two can garage and some elevation that may someday be a little view if a second story were to be added. Mostly a cosmetic improvement to the interior would be all it needs. Bring it out of the 70's. Easy cosmetic remodel process. Fix it then move in or move in and then Fix it? I like this Fixer. Call me and I'll show you why.

On the Speculator side... The nicest view lot at an OK price in the area is 13000 Warren Ave. On the slope. Not too near the airport but still you will hear the jets. (gotta be honest on that.) But the view is worth it. The back yard slopes down to a wide alley and gives you a great opportunity for redesign and building in a garage and entertaining back yard. The house has no real flow or style worth keeping. A land play and opportunity to build your dream home or to speculate that you can build and sell for a big proffit. Are you a Builder type? Are you deep pockets and want to invest?

Keith
310-391-0821

Thoughts re Private Property Rights and Public Roads

2008-07-17T11:05:00.000-07:00

A lot of different things are regulated. And a few of them seem to impinge more and more into the realm of private property rights. Even the Dog and Cat spaying efforts that the animal rights people are pushing into legislation could be framed as a property rights question.

After all is not a dog (although we may call it a pet) is really a personal property item that would hold value and be resell able. (think working dog not family member)

So if you have a dog that is not AKC registered can you still keep whole and eventually bread if you determine it to be worthy? Nope. What if via smarts or temperament that develops later in it's life you realize you have a keeper that you want to bread? This stuff is not viewable in a 4 month old puppy. American Kennel Club becomes the arbitrator of what is worthy. Not you. More lost rights. More big brother oversight and fees and paperwork. Is this really necessary?

Interesting questions.

When broaching this with some people they over react and get overly emotional on the topic imparting way to much dedication to the cause to even hold the ideological discussion on the topic.

Same can be true on Rent Controls. And on Property Rights like Zoning. And in some cases even the streets becoming filled with Speed Bumps. As the locals try to reduce the impending flow of the dreaded speeder or "cut through" traffic.

On the other side of the coin re Speed Bumps... Are they not reducing the usability of a perfectly good road? Does it not devalue our neighborhood by reducing the usability of our community streets? Surely it reduces the pleasure of drive. The speed bump definitely reduces the speed at which a EMT and the firetruck can travel and thereby reduced the response time to reach me or a loved one who is in dire need of help.

I know from personal experience that to ride in the back of an ambulance with a broken bone is a very painful experience. Extra painful at each and every one of these new speed bumps.

No, I do not wish a broken bone on the folks that signed off on that new speed bump. But I know some folks are going to feel pain because some goodie-goodie got the neighbors to sign off on a new set of speed bumps.

Ouch! Ouch! Ohh S#*~ not another!2 Ouch! (Ask and ambulance Tech what else he hears while driving over a speed bumped road)

Maybe we should stop trying to over-regulate all of those people around us.

I am amazed how the view of a local community member can be so incensed over a few extra (or a little too fast for his/her liking) cars that there is no way to discuss the above issues in calm discussion. Rabid need to "Do something about it!" and force his will on others. Even if is causes the city to reduce services to all of his neighbors in the city.

As a past member of the Mar Vista Community Council I now want to be on the record of my desire to ask all of us... Please do not go to Speed Bumps first to fix a perceived traffic problem. They are not a good thing.

IMHO.

Good writing at CityWatch LA re: Horses

2008-06-27T10:05:00.000-07:00

To have a horse or not to have a horse... There is a good place in the Los Angeles area for horses. Not just the Taxidermy version in the living room of the old Will Rodgers estate now a State Park.

Take a gander at http://www.citywatchla.com/content/view/1362/
to see what is going on that means the horses are affectively being squeezed out by back end policies that make it easier and easier to take lower density land and turn it into higher density land.

What is needed is that hight concentration be closer to the work sources and traffic corridors that are serviced by public transit. Everyone knows this. But that is not so easy.

For now I want to remind folks of the famous words " The outside of a horse is good for the inside of a man. " Horses are good for our city. Better than a pro football team. And I like football too BTW.

Mar Vista Community council election for our neighborhood.

2008-06-22T11:28:00.000-07:00

Hi All,

I am impressed, 119 votes from Zone 6. Way to go.

I was not even sure that that many could find Mar-Vista Elementary from our side of the hill. LOL (joke)

There are some friendships and many nice people I have met in the Mar Vista community thanks to my involvement here. I feel enriched by my experience.

It looks like I have two more meetings as a board member then I turn over my seat to Marilyn. I wish her luck and smooth sailing.

Sincerely Keith Lambert

MVCC Director for Zone 6
www.MarVista.org

Zone 6

Marilyn Marble 60
Valerie Davidson 35
Keith Lambert 12
Rachel Snowden 12

Total of 119 Zone 6 votes cast. Over twice that of the last election for Zone Director.

Are we about to get Mugged?

2008-06-02T14:37:00.000-07:00

"INFLATION IS AS VIOLENT AS A MUGGER, AS FRIGHTENING AS AN ARMED ROBBER, AND AS DEADLY AS A HIT MAN." Ronald Reagan.

You may not describe the effects of inflation in those strong terms yourself. However the effects of inflation do affect your life, your home, your gas tank and your family wallet. And inflation is also the nemesis of Bonds and therefore home loan rates, because just like inflation erodes the value of the dollars you spend, inflation erodes the value of the fixed return a Bond provides. And last week, Bond pricing worsened on news of inflation, causing home loan rates to move higher by about .25% across the board and reaching the highest levels seen in weeks. According to one of my best loan sources Ed Varon at Pacifica Mortgage.

That will slow buyers down just a little more. And force the prices down a little more. Maybe make it a little more likely that there will be a change of party in power. Would that be the White House going from Republican to Democrat or in Congress going from Democrat to Republican? I will not make any wild bets on that horse race. LOL

But the loans and the Real Estate Market are not a laughing matter. Higher loan costs are not going to free up more funds for more absorption of the excess properties on the market. Auctions bring in those with a pocket full of cash looking for a steal.

So many properties in my zone have “In Escrow” and “Sold” signs in front of them that I know there are savvy Westside buyers their scooping up the next Renovation or Quality property knowing that they are getting a deal that is “worth it in the Long Run” Yep. Priced right it still moves on the Westside of LA.

But what about Income Property? Many investors are willing to transport their investment funds to any zip code to get the better ROI. Will they still compete so dearly for SoCal investment property?

I don't think the super high premium will hold out on many items. But the Strength of the Rent Roll of apartment buildings in Los Angeles is not something to make light of. It is a strong set of supports to the apartment building value of the Los Angeles region.

It is slow but sure for this Tortuga. But it is on a steady pace. It will surely beat that wild willy nilly rabbit in the stock market.

IMHO Keith Lambert
310-391-0821

Props 98 is Great. Unless you are a city or mega developer

2008-05-30T12:40:00.000-07:00

With the upcoming election I would like to recommend that everyone take a look at the article in CityWatch

www.citywatchla.com/content/view/1282/

I urge a Yes on 98 and a
very big No on 99.

remember using:
98 is Great
99 is Lyin'

Neighborhood Associations and Community/Neighborhood Councils

2008-05-27T16:29:00.000-07:00

I believe that Community starts at the most local level.

Caring about the neighbors;

taking care of a Cat or Dog while they are away.
helping out in some small way like rolling in the trash cans.

About all the folks on your street;

becoming a Block Captain.
going out front to look when a car or house alarm goes off.
participating in (or running) a Block Party

Blocks around your home;

joining in to better a local elementary school.
joining in a Neighborhood Association. (ie Ven-MarNA)

Helping your community at large;

participating in the local city government agencies...
local councils for Venice or Mar Vista.
helping in the homeless programs.

City wide;

CD 11 - Bill Rosendahl's office
and the upcoming city elections or re-election campaigns etc.

or with party politics on a County or State level.

PURPOSE OF NEIGHBORHOOD COUNCILS
by the CITY CHARTER voted into Law 1999 by the Los Angeles City Council:
"To promote more citizen participation in government and make government more responsive to local needs, a citywide system of neighborhood councils, and a Department of Neighborhood Empowerment is created. Neighborhood councils shall include representatives of the many diverse interests in communities and shall have an advisory role on issues of concern to the neighborhood."

I have filed for re-election as the Zone 6 Director of Mar Vista Community Council. I have diligently attended the board meetings and been a participant of many of the committee meetings of the board. This does not leave a lot of time left over to be a leader in the Ven-Mar NA organization but I will continue to be a big booster for the group. I have set up the web sites and started (their) message board. I have been the editor for the last two newsletters.

I urge all of you to participate as you can at all of the local levels you can. That is what makes a community like ours extra special and a rewarding part of living here in Mar Vista. Most of you are Stakeholders in Venice or Mar Vista. Please come out and vote when that election comes up.

Sincerely, Your Neighbor,

Keith Lambert
Zone 6 Director for MVCC

As posted on http://groups.yahoo.com/group/VenMar/

March Real Estate News Clip

2008-05-06T22:27:00.000-07:00

"The California housing market in March continued to deal with problems in the real estate finance arena, rising numbers of defaults and foreclosures, and concerns about the economy. Sales of detached existing homes fell 24.5 percent from 422,300 homes in March 2007 to 318,830 homes in March 2008. Sales bucked a 4-month trend of increasing monthly sales, falling 6.4 percent compared to the February sales figure of 340,580 homes. The median price also continued its decline against prior month and prior year figures. The March median was $413,980, down a record-setting 29.0 percent from the median of $582,930 a year earlier."

Some of this may be the lower end stuff selling to developer/flipper types. The well off and well maintained property may not be in the sales volume right now. The ones I see actually selling are the better priced homes. The "deals" that are priced right. That may be adding to the heady news above.

On today’s Tuesday caravan there were two items that stood out. One a 1 bedroom Condo for 280,000 and a nice owner user type house with units.

Call me to ask for details if you are interested.

Keith L.
310-391-0821

I recomend Calamari Steaks!

2008-05-04T08:53:00.000-07:00

Giant Squid. AKA Humboldt Squid AKA the Scourge of the West Coast.
“If you don’t eat them now, they may be the only coastal fishery left.”

If you go out on some of the California sport boats and get into these big guys... No Release. bring home Calamari Steaks for all your friends and Neighbors!

http://www.kqed.org/quest/television/view/774

Watch the Video. Listen for the conclusion line.

KL. <”><

The Season is... Spring

2008-04-28T12:02:00.000-07:00

"IN THE SPRING, I HAVE COUNTED 136 DIFFERENT KINDS OF WEATHER. AND THAT WAS JUST INSIDE OF 24 HOURS." Mark Twain.

Bonds have weathered all kinds of ups and downs this spring, with this past week being no exception. Bonds did enjoy some high times starting with Monday's move to the upside after National City Corporation announced they would be receiving a $7 Billion cash infusion. This move suggests that investors are seeing value in the battered financial sector, and perhaps are feeling that there is a bottom being reached in the credit crunch.

In other headlines, Existing Home Sales met expectations, but New Home Sales numbers for March were worse than expected, possibly due to the large increase in the costs for materials needed to construct a home. But then there was a change in climate on Friday, as inflation news from around the World created some strong adverse headwinds for Bonds and home loan rates. Overall, home loan rates ended the volatile week unchanged to slightly higher.

Now is still a good time to take advantage of historically low home loan rates before more inflation talk pushes them higher. I'm always here to help advise...no matter the season!

Let me know what you want.

IF it is on the market we can find it.

Keith Lambert 310-391-0821

TAX TIME IS HERE AGAIN...

2008-04-15T11:01:00.000-07:00

"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:

Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.

Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.

Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.

Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.

Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.

Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.

Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

- Check IRS.gov

Saturday Fishing & Jackpot Winning

2008-03-31T00:03:00.000-07:00

On Saturday we went out and got a few rock fish. The best fish of the day was for Ryan’s guest Adam. It was a good thing. We had a small MDRAnglers jackpot tournament and Adam took first place with a good sized fish. Another guest on our boat took third place, Jeff. Now we are ready to Win more stuff in the MDR Halibut Derby. Which would be very Cool.
Weather was nice for the most part. Some "Lumpy" waves though. A little unpleasant and hard to go faster than 8 knots.
Keith <"><

Great news in the fight for clean air on Westside of Los Angeles

2008-03-26T14:17:00.000-07:00

SM CITY COUNCIL UNANIMOUSLY PASSES ORDINANCE BANNING LARGER, FASTER C&D AIRCRAFT

Following a study session that lasted almost four hours, and included public comments from a packed council chamber of Santa Monica and Los Angeles residents, including LA Councilman Bill Rosendahl, Santa Monica City Council unanimously passed the second reading of their ordinance that will take effect in 30 days, according to SM Mayor pro-tem Richard Bloom.

Follow link to learn more...

Concerned Residents Against Airport Pollution
Website: jetairpollution.com

loan news... What a big week we had.

2008-03-24T10:31:00.001-07:00

In the News: Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the last week. In the end fixed home loan rates ended up improved by about .25% for the week

The big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.

Keith L.

Starter homes in Los Angeles

2008-03-05T11:29:00.000-08:00

What is a starter home here in West Los Angeles... $600,000 to $700,000.

If you want a lot of land (dirt) and not just living space (condo) it is possible to get a single family home now that there is inventory and the buyer has a little bit more ability to negotiate where you are not forced to be over $700,000.

There is one nice little Los Angeles home on the west side priced just under $600,000 and it has a very good sized lot for our area. Over 6,000 sq feet. At the end of a culdesac. Ask me about it.

Others range from $675,000 with a nice little 2bedroom 1 bath and 5,000 sqft lot in an ok part of town. To a Westchester home in a area not to far from the airport or the freeway but with good amenities. Options. Options. Options.

What is a "Starter Home" in your part of the country? Leave a comment.

Keith Lambert

Thank you Mr. Bush for the Stemuli

2008-02-15T11:46:00.000-08:00

President Bush Wednesday signed off on the $168 billion stimulus packaged approved by Congress last week.

The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac, to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas using a formula that considers an area's median home price. The increase would only apply to loans originated between July 1, 2007 and Dec. 31, 2008.

Raising the limits is long overdue. Are you looking to get into a new home with a closing by Dec. 31 of 2008.

Call me and let's get you started.
Keith Lambert
310-398-3270

Local parcels that are upgraded worth the money

2008-02-11T09:21:00.000-08:00

One neighbor is moving on. They bought a nice basic house. They fixed it up over the 2 years they lived there. Now it is for sale for $999,000 on Colonial.

Most of the USA will think a 3 bedroom 2 bath home on a small lot is way overpriced at $999,000. But not so for Mar Vista Hill.

There is a house just a 1/4 mile away on Palms that is all new from the foundation up to it's view roof deck. 2 stories on a VERY busy feeder street. But at $ 1,898,000 is in line with what the newer homes are worth if built out to full modern standards around here.

The dog (run down) houses on the standard lot is worth $750,000-ish as dirt value. Just the land. The house on it does not matter much. I can point out 3 that I have pointed clients too. One was purchased for the slow fix up like above. One bought and torn down for a full on mini mansion that the local neighbors will hate for overbuilding. Ho well. It fills the lot and has some view potential. Nice house for a new large family. Another is a small developer who is building a cool new modern home on it.

This neighborhood is still a very sound investment.

IMHO Keith.

If walls could talk would you listen?

2008-02-06T20:41:00.000-08:00

Another attempt to be helpful for tenants, this site is interesting.

www.thinwallstalk.com/

This link is to the few items for Los Angeles. Not as fun as the one with the maps. But not slow to load like the Beta version now running at rottenneighbor.com.

I found out some interesting information on some places. ( like in Kent WA) I wanted more data. But it is a issue for the date to be uploaded by people who know that property or place and are motivated enough to do something about it. That would be a pissed off tenant. Rarely a happy tenant.

Is it a place to advertise your apartment building for rent? Not sure. Needs more traffic.

Craig's List is the hands down winner for that job.

Keith

Interesting tool for home and apartment shoppers

2008-01-23T11:37:00.001-08:00

Ok, the information age is getting some interesting bits of dirt on the people just around the corner.

Or is the dirt on You! Maybe.

www.RottenNeighbor.com has come to town. Interesting. So is the person across from that house you like a jerk? Enough of a jerk to be listed here?

Now you can find out before buying. Caution. If you post about your neighbor will it devalue your home when you want to sell? There is the rub.

However I like the idea of rating landlords. Many tenants do not have any way to tell if the business person who is in the housing provider line of work is an Ass or an Angel. This is vital information to someone looking to rent.

To post on a Jerk or not. It may be a nice way to get the frustration out. I heard about the rating of teachers at some college campuses and the benefits it gave to the students who want to minimize time spent on classes with jerk teachers. Or worse yet teachers that cant impart useful information in a meaningful way.

Can we (the public) benefit from www.RottenNeighbor.com ?

What do you think?

Developers needed who have deep pocket and patience

2007-07-31T08:13:00.000-07:00

If you want to combine several smaller sites and combine them to build a nice housing project give me a jingle. There are a couple of lots side by side that could be combined on a good street in an up and coming area that needs the boost.

We can go to the owners with Option or First Right to Purchase option contracts until we line up the 3rd site. Dropping small one story buildings and putting up new 3 story building with Parking and Amenities that the community wants. And maybe a moderate income unit or two that the community needs as well.

In the end it is a win win win that makes a few bucks for your risk and time and efforts.

Two different sites come to mind. Some of the owners I have had some great conversations with and they may want to play.

Are you Game?

Sincerely Keith L.
310-398-3272
www.REList.net

What a deal, at that price I'll take two

2007-06-24T15:35:00.000-07:00

Pricing a home for sale is an art.

One block over I worked whith a neighbor for a bit. He selected an out of area agent that was willing to give hime a discounted commission and list at the highest price.

It has been many months. Not sold.

How long can one carry the cost of two mortgages until you loose the savings?

Drop me a note if you want more info on the Mar Vista Area and home pricing.

Keith Lambert
Keith@REList.net

Motivated vs Fixer

2006-12-10T12:57:00.000-08:00

Good story in the LA Times Real Estate section today. About the words selected to reach the public. Marketing the property with "Motivated Seller" etc. is a dead giveaway that the price is negotiable.

See "Maybe it's locution, locution, locution" on LATimes.com

Yup even though the studies for the story were from Texas and Canada the basics hold true. And more importantly they describe the underlying conditions of the property in its relation to the market in general.

If a listing says "gourmet kitchen" it will denote that the previous owner or the speck builder who just fixed it up did care about the nicer things in life. So the property deserves a premium over the other items in the market place. Not just the words getting the premium price, the property warranting it.

I could say a lot about that... For example. Was the market really down or was it just that most of the westside home sales of Quarter number 2 of 2006 were of the dilapidated sort. Then the owners fix themselves or they were professionals and Fixed to Flip. So what was it ... Down trend on the market of westside homes or was it a series of shabbier homes getting sold.

I think that for a bit those were the ones being sold at that time for some areas.

Those of us out pounding the pavement saw that to a large degree.

Those numbers affect the statistics but the price to square foot is not adjusted to quality or condition on statistical reviews. The MLS and DataQuick can not do that.

Therefore the average investor and homebuyer needs a really knowledgeable local representative to help him/her get the best info on the local area.

If you are looking in west Los Angeles,
I can help you. Keith Lambert
1-310-398-3272

Immigration by the Numbers.mov

2006-11-18T23:22:00.000-08:00

Roy Beck's celebrated demonstration of the population consequences of current U.S. immigration policies has entertained and shocked audiences across the country. This video is packed with the facts and analysis that make moral and practical sense of a complex and highly contentious issue.

FYI Just gotta share this. Hit "Play" >
Wow. Now I get it! Why the Traffic thing is just the visible part of the "iceberg" - Keith

Activity - choice for the Buyer - 24 new listings

2006-10-08T12:12:00.000-07:00

For buyers of Single Family Homes to live in... It is a very good time.

Low interest rates and Choice! For three years it has been panic buy mode.
"Quick make an offer before someone else gets it!"

Now you the buyer get to really look at the homes on the market and pick the one that is a fit to your needs and desires. As a Buyers agent frequently I have been afforded a moment to go back to the real task of getting the Best Fit and the Best Terms.

In the last 3 days there were 24 new listings in the local markets I track here on the West side of Los Angeles. This is a good sample of the west Los Angeles communities I stay closely in tune with...

West LA
Cheviot Hills
Rancho Park
Beverlywood
Santa Monica
Palms
Mar Vista
Marina Del Rey
Venice

From these areas you have great values. Good quality of life and do not always need to get on the freeway to commute to the most profitable business hubs of Los Angeles. Closer to the beach you get the cool breezes and closer to the Beverly Hills area you get strong values as well.

What areas do you like in that selection? Hit Comments.
or
Visit my web site at www.REList.net to send me a note.

Values and the experience to tell you the truth about the market and the condition of the property in question is what you need from a buyers agent. Ask me about those services I'll be glad to help.

Keith Lambert
Buyers Agent and Full Service Realtor.

Homes in good School areas are worth more

2006-10-02T18:12:00.000-07:00

Homes that are in areas with the best schools are stronger in the resale market. Just think of all the funds NOT going to a private school that can be used for paying for the mortgage etc.

One of the local Mar Vista area schools to look into is a real up and comer. Beethoven is getting the parent participation that has typically made "Mar Vista Elem" the dream school.

See:

Saturday, October 7, 2006
School Beautification Day at Beethoven School,
on Saturday, October 7 from 8am till noon @ 3711 Beethoven Street, Los Angeles, CA 90066. We could use help with mulching of the Garden beds and planting as well as weeding and general clean up. Bring gardening gloves and a shovel or rake if you have them. Volunteers will be trying to complete the learning terrace that day. This project was made possible by a CB grant and transforms an unused asphalted area into a brick and planter filled area with benches for outdoor instruction.
Check it out if you are in the area. Pitch in if you have the time. It is all for the kids.

Market is working and moving up.

2006-09-25T11:14:00.000-07:00

Just moving up a little slower. Great time to be a buyer. Panic is over. Pick the place you want to live and a market price can be negotiated.

Just for back up I want to offer this information from Veros Real Estate solutions. It has great info for Mortgage and Real Estate businesses. So here it is again for you, my potential client.

Veros Forecasts Nation’s 10 Hottest and Coldest Markets
JUNE 30, 2006 – Veros has released the results of its quarterly forecasting of the nation’s real estate markets, revealing the top 10 hottest and coldest markets for the next 12 months…. (edit) its automated home valuation analytics are highly accurate and dependable.

According to Veros, the ten markets in its coverage area that will see the greatest home price appreciation over the next 12 months, along with the expected appreciation rate will be: Seattle, 11%; San Bernadino County, Calif., 9%; Jacksonville, 9%; Raleigh/Durham, 8%; Tampa, 8%; Tucson, 7%; Riverside County, Calif., 7%; Oakland, 7%; Los Angeles, 7%; and Nashville, 7%.

The markets that show the least home price appreciation over the next 12 months are expected to be: Rochester, -4%; Worchester, -2%; Sacramento, -2%; Memphis, -1%; Dayton , -1%; Grand Rapids, 0%; Boston, 0%; Cleveland, 0%; Detroit, 0%; and Fall River, MA, 0%. Veros Vice President of Technology Eric Fox presented the material at PMC 2006 in Dana Point, Calif. “We expect some home price appreciation on the hot market side, but nothing compared to what we’ve seen in the past. There are no 25%-plus markets in our projections. Appreciation is slowing way down.” Fox compared Veros’ predictions from April 2005 for the period Q205 through Q106 to actual home appreciation measured in the 10 hot and cold markets the company identified at that time. The projections made at the time proved to be very accurate. Using a typical measure used by statisticians to measure forecasting accuracy, R-squared, Veros scored 0.68 out of 1.0, indicating that nearly 70% of the variation in the results had been accurately predicted. Performing the same analysis on the results from the predictions made in April 2004 yielded an R-squared of 0.78. The prediction made in April 2003 yielded a 0.65.

So...

Looks good for the local Los Angeles area. Appreciatiion of 7% per year means it is still a good time to buy.

Let me know what you think of that.

Keith Lambert
310-754-8116

or mailto:Keith@relist.net