Email from Fidelity... Wall Street thinks it is the answer

FYI
in an email I got today...

You can be diversified in one place.
Dear Keith Lambert,
Diversification doesn't mean keeping your money with multiple investment firms. It may be more costly and difficult to manage your portfolio that way. A diversified portfolio is composed of investments spread among different asset classes, aligned with your objectives and risk tolerance. And when you consolidate your ...

Blah Blah Blah

To start diversifying today, call 800-XXX-XXXX or visit Fidelity.com.
Thank you for your continued trust.
Sincerely,
Cxxxxx Mxxxxxxxx
Executive Vice President
Personal and Workplace Investing Services
Fidelity Investments
Fidelity Brokerage Services LLC

The Gall of the stock trading industry and the suckers who believe them to be telling you the whole truth in their marketing materials. One must have an outside person like a real smart CFP. (e. g. www.WealthPinnacle.com) Or be smart on your own. "Diversify" does not mean having different types of risky investments with one stock brokerage house!

Use someone who gets the bigger picture to help you Diversify. You do have assets. You need to think about all the different assets. From the coin in your pocket to the back of the storage closet with that antique nick knack. Then review your financial position and goals.

Think of long term financial things in this light...

- Some in cash. (Not all in the same bank.)
- Some in a growth fund. (see above)
- Your Single Family Home. (gotta have a First Trust Deed)
- Some in income producing Real Estate. (Call me please - It's what I do)
- Some in an Insurance Policy with an annuity. (leverage tool for retirement)

And if you own your own business you need to back that up with Key Man Insurance.

So of the above items... do you have all 5?

Where do you Diversify too?

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

Bonds and Loan Rates... polishing the crystal ball

"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?

Many buildings need Buyers. Some are becoming great deals. Are you a Buyer yet?

Keith L.
310-391-0821

local politic DWP and Mesure B

I was pleased to see that the Measure B item failed.

This story form City Watch makes a lot of since to me. I was very actively involved with MVCC and so i really appreciate this story about how the community councils emerged as the leading opponent of the solar power plan, Measure B.

www.CityWatchLA.com/content/view/2330/

On paper... this apartment looks good

Have been out looking at the best GRM and the Strongest Rent Rolls for a few clients.

It is important to get out there and really look at it. If this one was not locked in by commercial usage it surely would be a deal. Or would it be at a higher multiple?



2009-04-21 Western Ave

Price Reduction - 6 units in Venice

Price reduced and a very good investment opportunity.

113 CLUBHOUSE AVE VENICE, CA 90291
$1,369,000
"A PRIME VENICE BEACH LOCATION WITH PARKING! LOTS OF OPPORTUNITY TO ADD VALUE AS ALL UNITS CAN BE DELIVERED VACANT AT CLOSE OF ESCROW. DRIVE BY ONLY, DO NOT DISTURB TENANTS"

See the Rent Roll and details on LII Web Site

If you get it Vacant and get all new Market Rents... What a good place to start.

Call me to review.

Keith Lambert - 310-391-0821

Builder / Invester - Build a Custom Home in Mar Vista

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 SFR Investor or Builder? Can you build fast and efficiently?

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 L.
310-391-0821

There is a Season... Lenders and Bankers are you listening?

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. I have always been an Earnings person. Not a speculator. Whether a stock or a property. What is the cash flow? It must be positive after taxes.

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 apartment building buyers to have to qualify under the best news for us would be a relatively simple way to gauge how the lenders will view the investment property and how much new financing it will receive.

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

**If you are in the lending side, please hit Comment button below and let us know what you are able to finance. Apartments / Income Property 5 or more units.**

Thanks all for reading.

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

IMHO Keith
310-391-0821