Tuesday, January 27, 2009

New LII Listing on Clubhouse Ave - 6 Units

Venice area of Los Angeles. 6 Units and good incomes.
More on the http://www.lambertinc.com/forsale.php page.

Call if you want my help to make an offer.

Keith Lambert

We are looking for a crystal ball now and then

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.”


And as my friends in the Brokerage and Lending field have heard me say "Once the lenders have finished crapping their shorts they need to get back to making loans again." But then today's LA Times has a story about one of the stalwarts of the local area multi-family lending business, First Federal Bank of CA, was stopped from making new loans.

This decision is in response to regulators demands. They have stopped making loans. What are those Regulators thinking??? This is a stronger institution. And almost all multi-family borrowers are paying the loans. Multi-family apartment buildings are Not purchased by speculative fly by night flippers who over leveraged and got upside down.

Sometimes I scratch my head. Most often when government regulations collide with the reality of what they actually accomplish.

If the government is spending 700 Billion to keep the banks lending... Why are they forcing our local bank to stop making loans?

Who sends the complaint letter to Obama?

All will work out. I hope the economists above have the reading right. So if you can get a loan. Now is not to far off from the bottom if 2010 is the start of the ride back up.

Keith L.

For Rent - 2 bedroom 1 bath at Santa Monica Beach

FYI for anyone looking for a cool beach side pad...

For rent for $ 2,900 per month. Good space. Right at the beach.

See the link for photos and map.

Keith <"><

Monday, January 26, 2009

The Markets and Lending this week.

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.

Keep in mind that the Pre-Approval for an Income Property needs the property info as well to be part of the package. Therefore it is a matching of the property financial porforma and the buyer financials AND of the lender package. The non-conforming type property is currently extremely hard pressed to find a lender at all.

Call me to review what is working as a good investment in the West Los Angeles areas.

Keith Lambert

Monday, January 19, 2009

New season is emerging!

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


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. Remember, while Bonds and home loan rates are still at historic levels, there will be some volatile changes due to the many variables affecting the markets.

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.


Monday, January 12, 2009

New LII Listing on Keystone - 11 Units

Lambert Investments has a new listing at 3623 Keystone Ave.

A basic Palms neighborhood apartment building. Built in 1960. 11 units. 6 one bedrooms and 5 bachelors. With a very good gross annual income of $111,884.

Mellow apartment lined street.

Very clean area. Easy to rent. Strong west side demand.

This is why it is a good long term investment opportunity.

Call me if you want an agent to help you buy this property.

Keith L.

Wednesday, January 07, 2009

Tuesday Broker Caravan

Wow. On Tuesday Jan 6the the number of brokers open houses was abysmal. Very few.

There is inventory. But maybe there is just few new ones. The few that were open I had ether seen or were dogs that I could not recommend anyone buy.

I wonder if other agents felt the same or if they were all out of town getting some runs on the slopes?

IMHO Keith L.