INVESTMENT? Part Quattro

Ok where were we?

Oh yeah......Non investors buying with the “it will be worth more in 5 years” and then we can sell at a “hefty profit”

Really?

To who?

Other investors?

New Boom!

Oh, I guess I am in the fortune telling business.

Ah…. but if you are a “Real Homeowner”.....it’s a great time to buy what you will not be able to buy in the near future for one simple reason.

Interest Rates

Remember the FEDS keeping rates artificially low?

Take advantage of the FEDS cheap dough, do it as soon as you can; they CANNOT keep it up...

INVESTMENT? part tres...

When we last left the investment craze we were at TARP (D,R,I)
So we continue:

FEDS step in and “prop up” Lenders; everyone freaks.

FEDS now “tighten” lending guidelines; Lenders stop lending

Renters can’t get a loan; Non Investors can’t get a loan

Real Cash “$$$$” becomes King

Cash Investors start “buying back” what they sold couple of years ago

Renters start renting again

So things are getting back to normal when ….

The Feds needing to “stimulate” the housing market do the following;

Keep Interest rates artifially low, hurting stable/spendable dough (think CD income)

Ease lending guidelines by propping up Fanny/Freddy

Investors keep buying, Renters keep renting

BUT

Non Investors now start buying (more on this later)

And this is where we’re at in the Cycle.

Oh did I mention a “real home owner”?

Will in part Quattro….

INVESTMENTS; Part dos

Buyer; “when will this property be worth what it was worth in 05’”

Jav; “when Hell freezes over?”

Buyer; “will that be in five years or less?”

Jav; “in five years this place will be worth more then what you paid for it”

Buyer; “how much more”

Jav; “well when we factor in; cost of living increases, general maintenance expenses (such as the people of Iraq …..I was going with a Ms. South Carolina gag here), depreciation, tax benefits, etc……..

Buyer; “I think I’ll rent”

Jav; “meet Erica”

So, you guys with me so far?

OK,
Lots of factors were put in place to make residential home selling profitable , it started about 12 years ago (and I won’t make it political; OK yes I will…..All were involved)

A quick recap;

Feds said “home ownership good for all” (R)

Feds make lenders “ease lending guidelines” (D)

Lenders can now “lend” to Renters (D)

Renters now “need” properties to buy (R)

Properties in hot demand so “investors” begin to sell (R)

Non Investors join in the” investing” game (R)

Renters/Non Investors begin driving market up (D, R)

Renters are “renters” and can’t pay mortgage (D)

Non Investors are not “Investors” and they don’t know how to make a buck (D, R, I)

Renters/Non Investors begin defaulting (D, R, I)

Lenders mortgaged to the nuts at 40 to 1 begin to see trouble (D, R)

Lenders start getting “creative” (D, R)

Creative goes BOOM!!!!! (D, R, I)

And here comes “TARP” (D, R, I)

Now it gets really good……….

INVESTMENT? A SERIES...

Every time I hear it associated with residential Real Estate my panties get in a bunch.

Real estate expert; “Well you know Tom, your home is your largest investment and as such…..blah, blah blah…..”

Jav; “Ouch, my panties are in a bunch”

Real estate expert; “Blah, Blah…..”

Jav; “Last I checked your home ain’t a Business?”

Real estate expert; “Blah, ZZZZZZZ…….

Jav; “And if it is, you’re nuts”

First question I get from Buyers is “How much will it be worth in 5 years?”

Actually that’s not the first question, usually it’s “You the Realtor?”

After we establish that I’m the Real Estate professional that works in Flip Flops, then I get the question “what’s it going to be worth in 5 years.”

“Beats the hell out of me” is my usual response; I’m not in the fortune telling business.

Those wonderful, overinflated, perfect storm days of 50% increases are over….WAY over; NEVER to be seen again (more on this on a later post)

But what I can tell you is “expect Residential Real Estate to be what it is; very boring unless you live in Hialeah.” (I have pics)

Look folks it’s not an investment, it’s where you raise a family, invite friends over to BBQ’s, visit home improvement stores and envy your neighbor’s lawn; in short it’s where you live.

Down the road when you sell it, chances are you’ll see a net gain but if you factor in “lot’s of Business” stuff, you’ll probably just breakeven.

If you’re into the “lot’s of Business” stuff…………RENT.

To be continued……..

I'm Back....

But was I really gone?

Will tell more later.

Flock of Ravens

Stay tuned for this project.

Concept is simple (so am I), we are going to start local running clubs to “Mimic” Ravens SoBe runs.

Now since we are NOT Raven; we’ll only meet once a week but we’ll run the 8 miles at the same time he does, just in the area that we live in.

So, figure something like this:

The Coconut Grove “Flock” meets at Peacock park and runs a set 8 mile course along the Biscayne Bay bay front.

The New York “Flock” meets in Central park and runs an 8 mile along the Reservoir.

The Wisconsin “Flock”…….probably just drinks beer.....Go Shoe!!!!

This would promote Raven Runs all over the Nation.

Now all we have to do is make sure a certain someone does not come up with a way of F@#$ing this up too........

Happy 60th Raven!

Relo Tours

This is one of my favorite parts/things that I do in my job.

Lots of other Agents don’t get it; they call it a waste of time on clients.
Well I say……….lots of things (most I can’t write).

I love taking Clients on “Javi Tours”, I think most “out of towners” have a HUGE misunderstanding of MEE-AM-MI and this is a really great way of scaring the hell out of them…..I mean educating them.

3 questions/misconceptions:

Crime; “Am I going to die here on my first day?”
Reply; “Hell no, it usually takes at least a week to have your Chilean Coal Miners Moment”

Prices; (this is usually asked with serious hard ass attitude) “I’m looking for a distressed property and it has to have a direct ocean view”
Reply; “Cool, here’s a boat”

Country; “Where the hell are we, no one speaks English here”
Reply; “Que?”

OK here’s the truth:

Crime;
Don’t sell/do Drugs; drink instead.
Random acts of stupidity; don't flash a wad of cash at a bar.
Cuban Crimes of Passion; don’t get caught sleeping in the wrong bed.

Prices;
When you hear the market in Miami Dade County is off by X amount…….Get a Map.
Miami Dade County is ONE BIG FREAKING County and off by X amount ain’t where you’re looking.

Country;
We’re diverse; get use to it, lots of fun.

Oh Heaven.....

Had an appraisal this morning and as I had a tough September with these “kitty cats”, I did not know what to expect.

When I walked in, owner was chilling and I asked her if the appraiser was in.
She said “Yup, around the kitchen measuring the home.


I held my breath as I approached the Appraiser and when he turned to me my heart skipped a beat…..

It was like seeing Brad Pitt, George Clooney and Matt Mcconaughey (all suggested by Ana rather quickly).

Remember September and my 1 & 4 Record?
Remember my 1 win?

Well there he was in all his glory.

We chat like old friends and as we were leaving I asked “think we’ll make the number?”

His reply brought tears to my eyes “This one’s a No brainer”


Which probably means I’m off by only 40k……………..

Key Limes, part Dos

Yup, the Corns have Key Limes!

How do I know this?

Well, we were all invited to a Kids party (more on this later) and I brought a sample of an “official” Key Lime and presented it with great fan fare (it involved a speeding car) to Mr/Ms Corns.

He took it and here I quote “hey, It’s yellow” (but with an accent)

Which I replied “told ya” (without an accent)

And then he said………something.. but I don’t know, as I was driving and had thrown it at him through my cars passenger window.

OK, Kids party….

All I can tell you is “Booze and a Balloon Blowing Dude” makes for one hell of a good Kids party.

Attack of Millipedes!!!!!!!!!

Ok, so every morning you wake up and see hundreds of these little guys all over the place.
On your walls, floors, bath...etc.

They are either crawling or rolled up in little balls (defensive mode) but if you ever see them like this.....leave them alone!!!!!



They are doing the wild thing and creating new little "Millies"

Just think how you would feel when you are having your "moment" and someone is trying to sweep you away with a broom?

Folks, they are harmless and will soon be back outside.

Millipede Facts

He owes how much????

“10 large” was the lovely young ladies reply.

But all I heard was “your screwed Jav”….

This particular “Reply” came from a Condo Association in SoBe that my client was in negotiations to lease a unit in.
We all had agreed to terms, move in date and were basically ready to go when we were informed that the owner owed the association some dough.

Now this happens all the time in condo rentals but usually it’s a couple of month and we can handle it with a separate agreement but 10k, damn that’s some owing…

Well after some back and forth we cancelled the deal and moved on and in the end it worked out for the best (as it usually does) as my clients ended up with a better unit in a great building for less dough.

Moral of the story?

Before falling in love with a place and writing up a lease, check with the condo association to see where the unit owner is with their assessments.

By doing so you can also see if there is any pending legal action, as the Association usually knows the complete “story” of any given unit.

Too bad I had to be reminded of this, Hell I’m a Condo president….

And you wonder why...

Yes, these two have a Florida Drivers license.

If you see them on the road, please contact me ASAP as they have stole their parents SUV and are out only to cause trouble.