Adam Brett's Blog - All Things Real Estate in Fullerton and Beyond

I was remembering my best friend who died in Iraq 4 years ago and re-read an email he sent during Christmas.  I urge everyone to take it to heart - as it defines our soldiers.

Hey Everyone,
A lot of  people have been asking me what I want for Christmas. Well I have to say nothing. Unless, I go Tiny Tim and say peace on Earth. But seriously, don't send  me anything. I have been getting so many packages from you all that I had to buy  an extra footlocker to hold all the snacks and stuff. And now the footlocker is  full too. I feel like a fat kid at weight loss camp. I'm hiding Twinkies in my sock drawer now. I appreciate it all, but I would rather do something different for Christmas. Instead of sending me something, send a toy for  one of the kids here. Or make a donation to a charity. I am blessed enough to have everything I need, so let's take care of those who don't. Ok  that's it. Take care and of course all my love.
Stephen

You can read more about Stephen McGowan by simply Googleing his name.  He was known as the Beanie Baby soldier which all started from this email.

This picture was taken in Iraq - Ramadi - 2004.  My best friend, Stephen McGowan, who was killed by an IED is pictured on the right, his battle buddy Wade Twyman (who was killed with him) is in the middle, and one of his best friends in the Marines is on the left, Jason Hagan.

I would just like to take this opportunity to remind people freedom is not free.  We live in the greatest country and many people have paid for it with their lives.  Please cherish them and the place in which we live.

I would like to share a video my best friend made while he was in Iraq serving with the Marine Core Scout Battalion as a combat medic.

Stephen McGowan died from an IED explosion in Ramadi in 2004.

He made it his mission to give to the innocent children there and at home. He wrote to a 2nd grade class in Texas and made them this video.

Regardless of your view on the war - this will inspire. I hope you like it. (please turn on your sound)

A Soldier's Journey: Stephen M. McGowan - Amazing videos are here

If you don't know by now - Google has driven across the US to capture the Street View of just about every road in America.

They also have captured some interesting events.  Here is one I found particularly hilarious.

Frame 1:  Kid riding his bike down the Street.

Frame 2:  Kid on Bike starts to go sideways

Frame 3: Kid hits the pavement

Frame 4: Kid upside Down

Today, and tomorrow, May 17 & 18, 2008, is the 14th Annual Muckenthaler Motor Car Festival, held at the Muckenthaler Cultural Center at 1201 W. Malvern in Fullerton. Today is the Hot Rods and Customs event and tomorrow brings the annual Concours d’Elegance. There are over 200 cars at this year’s show ranging from 1929 Ford Model Ts to 2003 Aston Martin Vanquishes.

On Sunday there is also a motorcycle class and class for Horseless Carriages from 1911 and 1915. This event supports many of the important programs held at the Muckenthaler Center including school tours, art programs and outreach efforts. Today’s entrants will be judged and awards provided for Best of Show, Best Paint, Best Interior, Best Engine, etc. Last year’s Best of Show winner was a 1929 Chrysler Model 65 owned by Robert Kehoe. It looks like there will be plenty of competition for this year’s award. Sunday’s event includes some of the most elegant and classy cars ever made.

Last year’s Pre-War Best of Show was a 1935 Delahaye 135 Competition owned by Ken Smith. Take advantage of the beautiful Fullerton weather and come on down.

This past week I met with asset managers from Countrywide and GMAC who gave me some interesting information.  They both stated the policy is now not to flood the market with REO inventory, but intead to trickle it out with more local agents.

This is a big change from the REO brokerages who cannot handle 200 listings at one time and give very poor service. 

Countrywide is going with the B of A methodology and will be changing how REOs are distributed and the time frame to market.

Please call me to find out the latest trend in Bank Repos and Foreclosed assets.

I recently implemented a new Blog Site www.RealtorBabble.com and it was brought to my attention this may not fit within the guidelines set forth by the National Association of Realtors.

After some research I found this would need approval from NAR so I thought I would post these guidelines.  If anything you will not waste time or money registering domains you cannot use.<!--[endif]-->
When surfing the Web for real estate homepages, it's quite common to come across sites belonging to REALTORS^®.

If you are looking to add your own electronic presence on the Internet, it is easy to get caught up in designing your own web page and choosing a domain name which will capture the attention of surfers and make you easily identifiable. Whether it is the domainname of your home page or other domain names you use to point to your home page, REALTORS^® often want to use the REALTOR^® marks as part of a domain name or address to distinguish themselves, but they must keep in mind that there are rules governing proper use of the REALTOR^® marks that must be adhered to at all times regardless of the media used.

These rules are found in the National Association's Membership Marks Manual, a reference manual available on-line at REALTOR.org, explaining proper use of the REALTOR^® marks including examples of correct and incorrect uses. Here is a brief list of the principal rules affecting use of the REALTOR^® marks in domain names:

1. The term REALTOR^®, whether used as part of a domain name or in some other fashion must refer to a member or a member's firm.

2. The term REALTOR^® may not be used with descriptive words or phrases. For example, Number1realtor.com, numberone-realtor.com, chicagorealtors.org or realtorproperties.com are all incorrect.

3. For use as a domain name or e-mail address on the Internet the term REALTOR^® does not need to be separated from the member's name or firm name with punctuation. For example, both johndoe-realtor.com and johndoerealtor.com would be correct uses of the term as a part of domain names and jdoe*realtors@webnetservices.com and jdoerealtors@webnetservices.com are both correct uses of the term as part of an e-mail address.

4. The REALTOR^® block R logo should not be used as hypertext links at a web site as such uses can suggest an endorsement or recommendation of the linked site by your Association. The only exception would be to establish a link to the National Association's web site, REALTOR.org, or its official property listing site, REALTOR.com.

The public has adopted the use of all lower case letters when writing domain names, even those containing trademarks. Therefore, for purposes of domain names and internet addresses only, there is an exception to the rule on capitalization of the term REALTOR^® and it may appear in lower case letters.

Whether you use traditional print media or the Internet, it is essential to use the REALTOR^® marks in accordance with the rules and guidelines of the National Association. The REALTOR^® marks should only be used to denote membership in the NATIONAL ASSOCIATION OF REALTORS^®.

I would love for the AR Communty to take a look at my new blogsite.  I created it using WordPress and put a vFlyer widget to showcase my listings.  It is still a work in progress but I have already received hits through MSN, and a few blog networks.  Thanks in advance for the comments.

www.RealtorBabble.com

Here is a screen shot:

Who ever said people don't look for homes in extreme weather.  Well, I guess 100 degrees is not that extreme when you live in Southern California - but none the less it is still HOT!!!

Today I am holding open a new listing and did not know what to expect.

It is the first days of true summer heat and I am pleasantly surprised at the turnout.  It is 12:45 and I have had 19 people so far. Not that I judge an open house based solely on the number of people through, but I also look at who is coming through, do I get any qualified leads, and did I successfully brand myself as the hardest working agent in the area?

Well, there are a few ways to accomplish this.  First off is your signage.  I put out over 35 signs flagging the house in from all angles. 

Secondly I am here from 10:00am to 5:00pm.  I find the bulk of people will show up from 10:00-12:00 and 2:30-5:00.  If I am going to take the time to set up - prep - print materials, I might as well be here all day. It is good for my clients and benefits myself.

Third I have a lot of valuable information for the prospective buyer.  I print all the active - pending - and sold listings within a mile of my listing and display this info on cork boards placed on easels.  I also have all the Short Sales - Notices of Default - Notices of Trustee Sale - and Bank Repos in booklets for people to browse.

I find this is the best way to establish yourself as an expert and have valuable information.  I do this every open house and have been doing it for over 1.5 years.  People will come into my open houses as they know I will have the lastest in market information.

Fourth - whether you know it or not you are being interviewed for listings. 

I love open houses and find they are ALWAYS productive.  Just having your signs out when no one else does because they think the weather will prevent people from coming out - you will be ahead of the pack.

Adam Brett
RE/MAX NOC
Fullerton, CA
714-496-8116
800-977-ADAM
www.RealtorBabble.com

The South Brea Lofts near DownTown Brea were auctioned the weekend of May 3, 2008. Here are the pre-sale listed prices and auction posted prices.

While the officical numbers have not come out yet, a little birdie gave me the low down.

• The owner of the complex pulled 5 homes before the auction to increase demand for the remaining units.
• The 20 which sold at auction went for an average of $563,000.
• Of the remaining 5 units - 1 has already sold traditionally at the new price range of $560,000 - $590,000.

For those of you looking to be close to DownTown Brea, and who would like to operate or lease business space this is a great opportunity.

Adam Brett
RE/MAX NOC
Fullerton, CA
714-496-8116
800-977-ADAM
www.RealtorBabble.com

In real estate investment, there are always some factors you would consider as risks which is usually not known at hand by the investor.  These usually involve the investors themselves and the people around the real estate industry.  Considering that most of your investment comes from financing, you will always consider those risks as a potential threat to your investment. Also, another risk might be from your failure to pay taxes.

Most people are not bold enough to take those risks with them.  Instead, they tend to put their money in the bank and get the annual interest than risking their money in real estate investment. However, those risks will prove to be futile at all if you will take some time in calculating your investment and examining the factors that may affect it before finding an agent to finance your investment. 

If you are considering in putting your money in real estate investment; you must acknowledge the risk factor that may affect it. For those who are new in real estate investment, it is best to hire the service of an analyst.  In this way, you will be able to make sound judgment with your property. The cost of hiring an analyst will be justified as reducing the risk of your investment.

Risk in real estate investment is something one could not ignore.  But with the right people at your disposal and the right judgment on what to do with your investment, you have just availed a sound and secure investment that will always promise for a good return.

If there is one promising investment field that you could always count on for a sure return; it would always be real estate investment.  Considering that prices of the property will always go upward, you will feel safe with the returns of your investment.  However, there will always be some risk factors in your investment. For sure, you would not like to think that possibility of losing your investment.

Perhaps, the common risk in real estate investment is the occurrence of fire or natural catastrophe.  No matter how you apply some safety measures in eliminating the occurrence of them or some ways to cope with them, you will be totally secure if you put another guard with your investment. That would be possible by availing yourself some insurance. With insurance, you will not only feel safe with your investment, you can immediately recover from any losses as the insurance will shoulder the cost of all damages incurred in your real estate property.

Now, before you get an insurance premium, you must consider also the risk of not being paid.  The most common lure of some insurance agent is that they are giving you a cheaper premium, however, the reimbursement is just very small that you cannot even afford to rehabilitate your loses.  That would be useless.  The reason of getting insurance for your real estate investment is to let you bounce back from the potential loses. If you are considering a cheaper premium, try to explore first on the coverage of the payment.  In this ways, you will not be disappointed on what you are paying for.

The next thing you have to consider is the terms and condition.  Insurance companies would also want to make sure that they are not being fraud.  For this reason, there are lots of conditions being attached to your premiums.  Availing yourself the service of a lawyer will help you understand those terms and conditions.  In this way, you will not feel sorry because the insurance company did not pay your indemnification due to some conditions you just simply ignored to examine.

Now, if you are considering investing in real estate, always consider to get a premium. Making it a part of your overhead cost will give you a double security. Surely, you would not worry anymore whatever happens to your real estate investment.

Success real estate investment starts with a deal.  Whether you are the seller or a middle party negotiator, you need to get deal done which can only be made possible in doing the right thing in dealing.  Although there could be some other approaches in dealing, the thing is you have to make sure the you will get a win-win situation wherein you as the seller will be satisfied with what you sell and at the same time your buyer will be very much happy in getting your property.

Most people tend to ignore the multiplier effects on the client in their individual carrier in real estate investment.  To think, clients can serve as your silent marketers without the fuss of paying them.  If they will be satisfied with what you offer, they would probably refer you to their friends and other person they know. In this way, you have just availed yourself of the free marketing service your client has given.  For this reason, it is best that you must deal with your client in the best possible way that you can be.

The first thing to get rid in dealing properties for your real estate investment is to lay al the facts about the property you are selling.  However, it must not be overdone with stuffing so much information about your property. Try to get straight to the point and show your potential buyer the needed information they would want.  In this way, they would not be waned of their interest.

The next best thing to catch the interest of your buyer is to customize your presentation on the need of your buyer.  In this way, try to find out some of the qualities of your potential buyer and what he wants.  There could be no wiser thing to do than knowing your buyer.

The secret of a good real estate investment deal is to let your clients be satisfied with the property you will be selling them.  In this way, you will not bother anymore to look for more potential buyer.

If you are thinking of investing your money in real estate, you are just half way of making yourself very successful.  Real estate investment is one of the fields you can surely be successful with your investment considering that the price of real estate properties will always go up.

There are some ways to raise your capital.  You can either borrow from the bank to raise capital or seek your capital through financial lenders.  However, most financial service providers would tend to evaluate first the property you will acquire for your real estate investment as this is also a form of investment in their part in the form of interest that they could get from the amortization plan you will be obtaining from them.

On the other hand, you must also get your fair share of the earnings in your investment.  However, with your limited knowledge on financial matters, you should avail yourself of the service of someone who knows better than you are.  For this reason, success in your real estate investment will not be complete without the service of the real estate appraiser.

The most important thing in getting an advice from the appraiser is that you will be availing yourself from lures of potential sellers who would overvalue the property which is not good for your real estate investment.  A way of gauging a competent appraiser is to look on his credentials.  Although you will be paying for the price of those who have a good track record, nevertheless, you will be satisfied on how that one will work. 

You do not have to think that hiring an appraiser is a lost investment, but try to think of it as a way of securing your real estate investment from potential overrated properties. Finding your self the right appraiser is an indispensable process in order to secure your real estate investment.  

If the number where to speak, real estate home sellers in the Orange County will have so many things to worry about.  Based on the latest statistics from California Association of Realtors (CAR), the median price of houses sold in the state falls up to 24% with the average price of house at $424,000.00 considered to be the lowest drop since 2003.

The drop in the average seems to be lower than expected $ 500,000 at the rate of 9.5% which CAR expected not to be lower than the 500 mark for single sized family in California.

Sales in houses are also something which could send a strong alarm to real estate players in the Californian State. For decades growth in price for houses in the state are always on positive side of the graph except in the early 1990’s when real estate in California experienced its negative growth mark at less than -5%.

 In the last 8 years, prices in California had a positive growth between 8%-17%. It peaked at 2002 reaching the 20 mark.  While a sudden 3% drop was experienced in 2003, the year 2004 has also experienced its highest growth rate.  But things did not go further after 2004.  Growth rates decreased for the latter years until the worst thing came in 2008.

By the start of the year itself, the forecasted growth is at negative mark.  This was realized in the later part of the 1^st Quarter which shows a sudden drop of 24% in all prices of houses in the Californian state which is unprecedented for so many years. CAR Deputy Chief Economist Robert Kleinhenz said, “The housing market fundamentally needs one thing to move forward, and that’s jobs.” With signs indicating economic recession for the entire country, this has also lessened more jobs due to closure of some business establishments.

Real estate market is always dependent on the economic factors that can beset the industry.  Economic indicators like unemployment rates and interest rates influence the growth of this sector.  If these factors will tend to increase that means lesser market to buy for some homes making the price to cope with the market demand and, thus settling for less.

However, realtors are still optimistic with how the down turn is going on. While statistics shows negative numbers in growth, Kleinhenz reiterated that numbers do not represent in distressed homes that accounts 2.2% of all home loans.  Kleinhenz stated, “It’s not like everybody’s losing their house. Still, we have a huge number of distressed properties on the MLS, and it’s driving prices down. So it’s not like it’s not a problem.”  He further said that these numbers will slightly improve in some days to come and will eventually climbing above its liquidity.

However, for some this is also the buying season.  As numbers indicate a slump in prices, this can also be the good opportunity to buy properties capitalizing on its slow down. While the short term effects may not find the current situation favorable, however, in the long run investments will eventually climb up.

Adam Brett
RE/MAX NOC
Fullerton, CA
714-496-8116
800-977-ADAM
www.RealtorAdam.com
www.AdamsMLS.com
www.RealtorBabble.com