Monday, April 20, 2009

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

Thursday, April 09, 2009

6 One Bedroom - 1 Bath
5 Bachelors - 1 Bath

11 Units in Los Angeles - ACTIVE

3623 Keystone Avenue
Los Angeles, CA 90034
East of Overland Ave & North of Venice Blvd

Thomas Guide: 672-F1
Click here for a map

Purchase Price:

Annual scheduled gross income:

Year built: 1960

Zoning: LAR3

Lot Size: 7492

Building Square Feet: 5656

Parking: 11 Spaces


Great Bread & Butter Building. Easy to rent and manage. New Roof and New Copper Plumbing. Desirable well located rental area with upside potential.


1 1 Bedroom, 1 Bath $ 990.88
2 Bachelor, 1 Bath $ 797.21
3 Bachelor, 1 Bath $ 784.88
4 1 Bedroom, 1 Bath $ 811.22
5 Bachelor, 1 Bath $ 795.00
6 Bachelor, 1 Bath $ 775.00
7 Bachelor, 1 Bath $ 825.00
8 1 Bedroom, 1 Bath $ 960.88
9 1 Bedroom, 1 Bath $ 787.88
10 1 Bedroom, 1 Bath $ 759.88
11 1 Bedroom, 1 Bath $ 885.88
Laundry $ 150.00

Total Expenses:

Scheduled Monthly Income:

Scheduled Annual Income:

To learn more and see additional Photos

The information presented here is based upon sources we deemed to be reliable, but for which we assume no responsibility.

Monday, April 06, 2009

Are they speaking of turning points?

The March 12th Congressional hearing on mark-to-market (Financial Accounting Standards Board's (FASB) favorable vote to relax accounting rules), which will help to warm up the frosty credit markets, Stocks have risen 23% just on the speculation a change could be coming. And just one short day after the FASB mark-to-market ruling, there were stories of banks already saying they may not need to sell assets to raise capital, as they will no longer have to take massive paper losses by pricing their assets to the "fire-sale" comps that were created in some of the illiquid markets. Capital ratios are now more in line for many institutions, which will also help their ability to lend - in turn helping consumers and businesses alike. Yesterday's ruling is a dramatic step towards unwinding the negative spiral created by mark to market, and in fact, the ruling on mark-to-market accounting could well go down in history as a turning point in the US financial crisis.

While Stocks were buoyed by the Mark-to-Market announcement and optimism that the G20 meeting in London will lead to an agreement on ways to pull global economies out of the current recession, Bonds were unable to hold onto recent gains. As a result, Bonds and rates ended the week .125-.25 percent worse than where they began. Therefore interest rates for loans may start to creep upward.

Are we nearing the bottom? Do we all see that light ahead? It is the end of the tunnel?

Are you optimistic about Real Estate values in the future now?


Thursday, April 02, 2009

In support of financial optimism

Dear Real Estate Investors, (and fellow Agents/Brokers)

We have a duty to this great nation to help reinvigorate the trust of the populous and re-instill faith in the most basic of the feel good Financial Base we all look too. Real Estate. The emotional state of the local and national economy floats with the basic values in the marketplace Both here in town and on Wall Street.

So make a Sale. Make a Purchase. Start helping fellow investors see that it is a good time to buy and make a leap of faith and trust that things are heating up.

It is warming up here in Los Angeles. My clients just successfully got a 6 unit apartment building under contract. Escrow opened yesterday and the inspection is tomorrow. There were multiple offers!

That's what I'm talking about. If you are looking to buy a good investment property in the Los Angeles region Call me. There are strong rent rolls in our marketplace. Just what a risk avoiding investor likes to see.

Keith L. <"><