The big news for the week came late on Friday. After market close, it was announced, that IndyMac Bank, a leader in “Alt-A” loans, had been seized by the Office of Thrift Supervision, due to a run on deposits. This made IndyMac Bank the 2nd largest federally insured financial institution to be seized by US regulators. The largest failure, if you are curious, was in 1984, Chicago’s Continental Illinois Bank and Trust. A successor institution, IndyMac Federal Bank FSB, will open next week. About now I’m remembering two years ago, when many prominent individuals were talking about how the subprime situation was under control said it would produce minimal fallout. What caused all this was the huge number of defaults on mortgage loans made to, well, people who could not afford them. More ... 07/13/2008

By Alexander Bermudez  How many times have you heard the statement, “ If only I had bought property, back when it was so cheap”? Even the most successful real estate investors have been known to mutter these words from time to time. Suffice to say, the best time to buy has always been in the past, short of that, and providing the property can achieve the economic objectives of the investor, now is as good a time as any to start investing in real estate. The population of the world is continually expanding and with this, comes accelerated migration to areas with the greatest economic opportunities. As demand rises, prices of well-situated real estate will trend upwards, triggering a surge in development until equilibrium is achieved, thus the market cycle. However in mature markets or ar... 07/09/2008

By Alexander Bermudez Now that we have discovered the miracle of compounding property values, it may be a good time to discuss the inherent shortfalls of real estate.   Remember all investments harbor risk, in the case of real estate; the lack of liquidity is its Achilles Heel.   Liquidity is a term that refers to an asset's ability to be sold (liquidated), in a short period of time and with minimum loss of value. Although one of the best asset classes available to individuals with long term investment horizons, real estate can take months, if not years to sell.  In a slow market, pricing may be unpredictable and adding insult to injury the transaction costs are high.  In a poor market leverage only exacerbates the problem, by increasing the volatility of the asset.  Needles to say, you... 07/07/2008

By Alexander Bermudez In this increasingly material world we live in, many people find themselves living beyond their means, and the prospect of investing takes a back seat to consumption. Ironically wealth is so coveted by our society, many people, not disciplined enough to invest, take the easy road and consume, often more than they make, in an effort to appear wealthy. Our culture seems to promote this behavior, how many times have you heard the term, “rich man’s car”? A car may be expensive, however this does not make the man who drives it rich, surely any car a rich man drives regardless of price, quality or condition is a “rich man’s car”, after all, it is the man who defines the car. Not content with the facade of keeping up with the Joneses, many high net worth individuals resis... 07/06/2008

What is the one thing you are most concerned about regarding the current real estate market? Anonymous Dear Anonymous, The problems we face in Real Estate today, were spurred out of a global, low yield environment, due to the lowering of interest rates by the Fed and other central Banks around the world, after the tech "bubble" crash and 9/11. This phenomenon stimulated massive investment in real estate, through the use of cheap capital. Unfortunately consumer debt also increased substantially, leaving Americans for the first time in history, with a negative savings rate. This is of grave concern, as it leaves Americans with little or no financial cushion, for the hard times upon us. Investment Banks yearning for higher returns, responded to the historically low yield environment, by va... 07/06/2008

If you are a real estate investor, what kind of cap rate do you look for? Anonymous   Dear Anonymous, "Capitalization Rates" much like "Gross Rent Multipliers" are useful as a preliminary measure of any given building's ability to create cash-flow, relative to other available properties. Different markets will have different Cap Rates, the better the neighborhood, the lower the Cap Rate and vice-versa. One could look at recent sales of comparable buildings, to ascertain what a typical Cap Rate would be, for a particular sub market. In doing so, an investor could calculate how much he or she, is paying for each dollar of income, relative to other investment properties in the same sub market. Cap Rates however do not take the expense of financing into account, thus they do not give a comp... 07/06/2008

We have seen how raising oil prices have affected the auto industry, how do you foresee the high prices of oil affecting the real estate industry? Anonymous Dear Anonymous, No other city in the world has embraced the automobile as enthusiastically as Los Angeles and its satellite communities. The perpetuation of 'suburban sprawl' and the extensive freeway system, are products of an economy based on cheap petroleum. Because of this, the ramifications of sky high gasoline prices will be particularly impact-full on real estate and future development within LA county. As gasoline prices continue to climb, alternative transportation will become increasingly attractive to many commuters; this would lead to further development of LA's mass transit rail system, in an effort to satisfy the growi... 07/06/2008

  How Can I Start Flipping houses? Anonymous   Dear Anonymous, I strongly believe in adding value to real estate, through rehabilitation and redevelopment. This simple idea has been the foundation of my investment strategy over the past several years. However it is important to note, our firm focuses on the rehabilitation of small, 6 to 12 unit apartment buildings and we have, for the most part, held on to our properties in order to capitalize on the resulting cash-flow. This strategy, while being lucrative is of course quite different to 'Flipping' in the context of your question, but the experience my team and I have acquired over the years, in addition to my market knowledge as a Realtor, has led us to explore, on many occasions, the opportunities flipping real estate could present t... 07/06/2008

I am writing an article on the dangers of trying to time the real estate market or the pros and cons of a first time homebuyer buying a home now. Anonymous   Dear Anonymous, Buying at the absolute bottom in the Stock Market, a highly liquid, publicly quoted, market is difficult, to say the least. "Private Real Estate", a fundamentally illiquid market comprised of emotionally charged buyers and sellers, with limited pricing data, makes timing the bottom next to impossible. If one is interested in attempting to time the market, I assume it is for investment or more precisely, speculative reasons. This brings up another important point; a home is not an investment. Historically house prices have followed the Consumer Price Index (CPI) quite closely over the last hundred years, hardly an at... 07/06/2008

There are a lot of hassles to owning rental property: late rent checks, maintenance expenses, insurance, vandalism, etc. Is it better to own REITs instead? There are six REITs that pay MONTHLY dividends, for consistent income, and have the same total return on investment as apartment buildings. Also, you never have to answer a phone call from a renter late at night. Anonymous   Dear Anonymous, Over the years, I have repeatedly considered buying REITs in an effort to diversify my existing real estate portfolio. However, to date I have not bought, due to the lower return's associated with REITs. In many ways real estate is more about people, than bricks and mortar. Serving the needs of one's tenants must not be looked upon as a hassle, one must remember it is in-fact the tenants that, ove... 07/06/2008

In balance, do most of the people that you deal with feel like the US Commercial Real Estate Market is a) softening to the point that better value opportunities are available, or b) has a long way to go before any real value opportunities are out there - therefore today's value opportunities will look like Fool's Gold when we eventually bottom out? Anonymous   Dear Anonymous, In Los Angeles, multifamily investment opportunities in reasonable neighborhoods are priced so high, that prospective buyers putting 35% to 40% down, would not likely enjoy any free cash-flow, and would have to rely solely on capital appreciation for financial gain. The same can be said for other classes of real estate, such as office and industrial properties in the same sub markets. This market environment implie... 07/06/2008

I am being told that renting is better than buying in a market of declining home values, but have a hard time understanding it. Isn't paying a regular 30yr mortgage like putting most of that money in my pocket? And renting like putting in the landlord's pocket? Please help me understand the value of renting! Anonymous   Dear Anonymous, Unfortunately the monthly interest portion paid to the bank dwarfs the principle paid down every month for the first twenty years of a typical 30-year loan. Thankfully as time goes on, the monthly principle will incrementally increase month by month, from a measly 9% of the monthly payment, to 95% by the time the final 360th payment, is made. (It is important to note that shortening the amortization period of the loan can increase the monthly principle po... 07/06/2008

  Of note: *FOMC left rates unchanged with the target funds rate at 2% and the discount rate at 2.25%   * Consumer Confidence-came in at 50.4 one of the lowest readings and some economists are surprised since, in their words, "the expansion of the economy is underway", meaning we are not in a recession. I would argue that most individuals are not feeling the positive effects of an expansion. Consider that overall real wages have remained stagnant in the last 30 years and that prices for many essential items have increased over that time, not the least of which is the price of a gallon of gasoline. Add to that the negative effects on net worth that lower real estate prices have produced and I'm not so sure things are as rosy on Main Street as the economists and Wall Street gurus would l... 06/27/2008

On my www.MediaCarrot.com blog I mentioned that I was going up to big bear for a photo shoot, but I didn't give all the details that I usually do. I didn't want to say to much and jinx it but, I was going up for a test shoot for Big Bear Vacations. Big Bear Vacations is one of the top property management companies in Big Bear. Turns out they were very happy with my test shoot. I now have a contract with them to photograph 200-300 of their properties(they are getting new vacation rentals every time I go up there)! Woo-hoo! I love it. I get to drive up to beautiful Big Bear once or twice a week. It will be a project that we'll work on for the next year. I'm very excited to photograph all their vacation rentals and they seem just as excited to have new photos and virtual tours for their va... 06/23/2008

Burbank Realtor, Burbank Real Estate & Homes/Condos For Sale is available to negotiate best price and terms.  Learn more about Exclusive Buyer's Representation.  Did you know that Burbank HomeBuyers can qualify up to 1% cash back rebate at close of escrow?, learn more. Please contact Lupe if you are looking to buy a condo or house near Burbank Unified School District of your choice.  Lupe Soto, Expert Burbank Realtor serving Burbank Real Eatate & Homes For Sale.  Lupe Soto is Bilingual, Burbank & SFV Real Estate en Espanol. BURBANK CONDOS, TOWNHOUSES READY TO BE SOLD, CLICK HERETHE BURBANK COLLECTION NEW CONSTRUCTION CONDOS  FREE SEARCH - ANY PROPERTY - ANY PRICEFor REO/Lender Owned, please check box under "special conditions"Happy Searching!"You can go from agent to agent to agent,but ... 06/16/2008

Burbank Unified School District (BUSD) & Homes For Sale in Burbank, please contact Lupe Soto, Burbank Realtor & Feng Shui Real Estate to help you identify Burbank Real Estate & Homes For Sale using the Burbank Unified School District Master Street Directory Listing & boundary chart to search and select the elementary, middle school or high school of your choice based on the prospective home for sale address.Burbank CA Homes For Sale is just a call or click awayLupe Soto Burbank Realtor (818)276-6882 cell  Burbank CA 91501, Homes Condos Townhouses For Sale near Burbank Unifed School DistrictBurbank CA 91504, Homes Condos Townhouses For Sale near Burbank Unified School DistrictBurbank CA 91505, Homes Condos Townhouses For Sale near Burbank Unifed School DistrictBurbank's Brace Canyon Park... 06/13/2008

Burbank Real Estate & Homes for Sale (818)968-3718 by Burbank Expert & Bilingual Realtor LUPE SOTO, serving Burbank CA & surrounding areas of San Fernando Valley in Los Angeles County, CA. Billing itself as the "Media Capital of the World" Burbank CA is an enterntainment-oriented city that prides itself on its quality of life, combining 21st-century technology with a small-town feel. The city is name for Dr. David Burbank, a New Hampshire dentist, who bought two large ranchos in the area in 1867.  A half-century later, the icty became home to the budding aviation and entertainment industries. Lockheed Aircraft Co. purchased a piece of Burbank farmland in the mid-1920s, and Amelia Earhart and Howard Huges were among the aviation pioneers who used its airfield.  The motion-picture busines... 06/13/2008

    Burbank, like other local markets, is seeing a very busy spring selling season.  Buyers may be waiting on the sidelines, however there is a lot to think about, not just dream about. Market Index In most markets the last peak was in May and June of 2007.  Burbank's market index in May of 2008 reached 0.31, surpassing the previous peak of 0.30. Pending Ratio Homes going into escrow mean homes closing escrow, which in most cases means reduced inventory.  When inventory declines, price go up, right?  So for the last few months the pending ratio has been I increasing: February 0.55. March 0.68, April 0.49, and May 0.70.  The previous high was May of .07 with 0.58, so that tells us that the market is heating up.  Don't get me wrong, we have a long way to go.    Average Sales Price In May ... 06/10/2008

Lupe Soto, Feng Shui & Burbank Realtor with VISION Representing CLIENTS with DREAMS! source:  www.BurbankWire.com Burbank WireSeptember 1, 2008www.BurbankWire.com Welcome to Burbank Wire newsletter, connecting people to events sponsored by educational, municipal, non-for-profit, churches, businesses and other community organizations in Burbank & nearby areas. To submit content, or to report an error or omission, please contact Jim Hetherman (Jim@BurbankWire.com) and begin the subject of your email with BURBANK WIRE in ALL CAPS.  See our contact page for more information: http://www.burbankwire.com/bwire/contact.shtmlPlease forward this Newsletter to non-subscribers who may benefit (with the non-subscribers permission, of course).  Burbank is one of the most resident and visitor friendly... 06/06/2008

                                        * Leading Indicators, inched up .1% trying to suggest that the economy will not officially dip into a recession.(Monday) * Producer Price Index .2% increase seems tame following the 1.1% surge last month. (Tuesday) * FOMC Meeting Minutes the Fed lowered it’s forecast for economic growth and indicated that it was pausing in it’s interest rate strategy for a while. They believe that while growth is contracting in the first half of 2008 it will rebound in the latter half of the year.(Wednesday) * Jobless Claims came in at 365K which seems to suggest a stabilization in the jobs market.(Thursday) * Exisiting Home Sales dropped by 1% in April and inventories rose from a supply of 10 months to 11.2 months.(Friday) * Bonds…2 year 2.45%, 5 yr. 3.15% and th... 05/23/2008