Westside Income Property - Los Angeles

Venice Beach lodging - Fun and Cool.

2012-01-09T12:16:00.000-08:00

OKay if you are coming to the Los Angeles area to search for a new place you need a short term rental... Or say you are a business transfer and want a week of good housing while you search for a long term apartment but do not want a boring hotel.

THEN the answer is the Venice Suites or Venice Breeze Suites.

You can find all the info on www.BestOfTheBoardwalk.com

Really cool to look out your windows and check out the serf on the beach. WiFi for the guests. And Venice Suites does include parking. A big deal in beach towns up and down the coast. Ask if parking is included. Many of the other places will say No.

Stay at the best. Right on Venice Beach for the views and fun hip feel.

IMHO. These are the best.

Keith

PS the new Google Offices are a little way away in Venice on Main Street.

Holiday in the City

2011-12-30T09:36:00.000-08:00

I think this is the best Holiday Card for this season.

Hopping you all had a nice holiday filled with family and love. Now as we look at the new year we turn to 20 12 with aspirations for a very profitable year.

I think the new year is going to be very good.

Enjoy...

Snow Globe Los Angeles from All Cut Up Films on Vimeo.

Nice! Right?

Keith

Los Angeles Multi-Family Property Owners defended in the Court

2011-11-18T10:07:00.000-08:00

Very good news recently. Our properties are defended by the courts from the LA Housing Department.

http://www.fairhousingcoalition.com/?p=343

So the various inspections and many various citations and harassment are hopefully coming to a stop!

This will reduce the likelihood of the harsh REAP situation that costs the owner thousands and makes legal trouble for many. Some have even lost their property!

This is a bombshell ruling! Since that time tens of thousands of properties have been placed into REAP due to supposed building code infractions cited by non-authorized LAHD inspectors. Hundreds of Millions of Dollars have been confiscated from Landlords since December 1, 1999 because of matters relating to building code violations once again cited by non-authorized LAHD inspectors.

See the link for more information. And a Thank You to Superior Court Judge Jaffe for this ruling helping to protect Housing Providers from the LAHD in its heavy handedness.

Most small businessmen (and businesswomen) who have apartment buildings (multifamily dwellings of all sizes) have been terrorized by the next city or county inspector to knock on our door.

Excess fees and taxes and petty inspections loaded with fines are killing our bottom lines.

We must band together with groups like ACTION (in Santa Monica) and AAGLA (in Los Angeles) or other associations to protect ourselves from big government abuses. they are the few who can fight the fight with/for/together so we do not get overwhelmed.

Sincerely

Keith Lambert

How the 1031 Exchange Affects Income Property Investors

2011-09-07T11:06:00.000-07:00

Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:

An investor who purchases $100K worth of Microsoft stock in 2000 sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our Microsoft investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from the Microsoft investment plummets from $100K to $70K. Still not a bad return, but after taxes our Microsoft investor now has only a total of $170,000 to reinvest.

Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same $100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.

The effect taxes have over the long term are dramatic. I suggest having performing real estate in your portfolio.

If you want to invest in secure West Los Angeles multifamily or commercial property please consider using my services to aquire/manage/sell as needed.

Sincerely Keith Lambert
310-391-0821

2 bedroom for rent - Santa Monica

2011-04-25T10:24:00.000-07:00

I have rented several of our places in the last few months. Most rather swiftly.

Then there is this one...
http://www.hotigloos.com/viewlisting.php?id=20325261
or http://www.postlets.com/rts/5192161 for the info on it.

This unit is lagging on the market for some reason. It is not the price that is turning people away. It is the same features that rented upstairs (two recently and for far more monthly rent).

Was it the barking dog next door that made so many take a pass on this really nice unit?

Does that mean the only potential resident will be one with a barking dog themselves?

Not very happy about this turn of events.

KL.

Pets and Apartment renting...

2011-01-27T10:47:00.000-08:00

Pets are a new thing for many of the apartment buildings on the west side of Los Angeles. Allowing pets enables us to capture more tenants/clients that we used to be able to turn away. Now we need them to fill our vacancies.

Some points to ponder:
- Pet Deposits are often to low. (carpet - woodwork etc. cost big bucks)
- Staying up on the maintenance of the pet must be reinforced. (over time)
- Keeping the rest of the residents from assuming they all are now allowed to have a pet is the worst part. (they see it as favoritism. We see it as contract law.)

I've seen ... Snakes, Iguana, Birds, Dogs, Cats.

Snakes... Food is mice. What if some mice get out?
Iguana... food is crickets. They will be all over eventually. chirp chirp chirp in the neighbors kitchen etc.
Birds... Squawking (big) or pooping on the curtains (little).
Cats... Indoor is usually ok. Outdoor is not. (bring home mice to your building)
Dogs... Little ones yap. Very big ones frighten the other residents.

This can be a long list.

Just remembered the Ferret... Now that is a story. he he he

Keith
www.Lambertinc.com
Property management in Santa Monica, Los Angeles, Venice

lending... What makes the R.E. World go round.

2011-01-18T15:40:00.000-08:00

You know the old song... "Money makes the world go 'Round"

Without lending the real estate world will not go around very much. It is possible to get loans. They do really put the lender through the ringer nowdays. If they fund at all.

So what rate do we put into the calculations as we evaluate the loan portion of the buy - don't buy evaluation. that oh so nebulous "Does it make Seance" that I hear all the buyers ask. Do i pencil it or work out detailed spreadsheets?

I'm a bit geeky so you know the answer to that. But the Loan rates...

This came in on my email today. Looks rather good. Market still getting really nice rates. But will they loan on your building. Lets find out.

Call me to review your criterion for buying an apartment building

Keith
310-391-0821

Know The Difference Between Solvable Problems And Livable Constraints - Thoughts on Change

2010-11-09T14:46:00.000-08:00

Interesting Quote came across my desk today.

"A problem is solvable. A constraint must be lived with. The art is in telling them apart.

For years, Apple viewed retail distribution as a constraint. They had to live with cranky independent computer stores, or big box mass merchants that didn't display or sell their products well. Using the internet and then their own stores, they eventually realized that this was actually a problem that could be solved.

On the other hand, there are countless entrepreneurs who believe they can solve problems relating to funding or technology that are out of reach given their scale or background. They'd be better off if they accepted them as constraints and designed around them."

- Seth Godin, from Seth Godin's blog

so Financing is a Constraint.

Many of the features of the landscape around the property is a constraint.

Knowing how to solve a problem or adjust a feature is another thing. How we reach a new renter base or reconfigure to get more revenue streams are the higher and better solutions or better end results that enhance property values.

With local knowledge and an overall big picture view we can tap onto those new options. Sometimes by changing simple things like renting it furnished. Or other times by not so easy things that take years of working with the city.

Rewards for the investor comes to those who see a positive change and goes after it.

Email or Call if you want to pursue a positive future in the local Los Angeles Real Estate marketplace. There are some changes coming to the area.

Let's tap one for you.

Sincerely,

Keith Lambert
310-391-0821

My Best Apartment in Santa Monica for a Discriminating Beach Lover!

2010-10-18T18:08:00.000-07:00

Keith | LambertInc.com | (310) 391-0821

2215 Ocean Ave., Santa Monica, CA

Watch the Waves on the Beach. The Best Apartment in Santa Monica for a Discriminating Beach Lover!

2BR/2BA Apartment

$3,585/month

Bedrooms	2
Bathrooms	2 full, 0 partial
Sq Footage	Unspecified
Parking	1 dedicated
Pet Policy	No pets
Deposit	$3,850

DESCRIPTION

Classic Beach Front Apartment - Views of the Ocean Waves crashing on the Beach from your front picture window! Top Front unit. Between Pacific and Strand. West of Main Street. Charming old art deco building from 1925 with Spanish revival influences. Wood floors and many wood cabinetry finishes and tile. Parking is 1 space off the alley in a garage!

see additional photos below

RENTAL FEATURES

- Fireplace	- High/Vaulted ceiling	- Hardwood floor
- Family room	- Living room	- Dining room
- Cable-ready

LEASE TERMS

Prefer a year but will consider 6 months

ADDITIONAL PHOTOS

Front View of building

Beach View - Street Level

Contact info:

Keith

LambertInc.com

(310) 391-0821

Equal Opportunity Housing

Posted: Oct 18, 2010, 4:41pm PDT

Santa Monica's Smokers must retreat to indoors

2010-09-20T15:42:00.000-07:00

They Live in "la-la land" in Santa Monica City Hall

MEANING: noun,
1. A place or a state of being out of touch with reality.
2. A place known for frivolous activities.
ETYMOLOGY:
Finally, a fictional land that is named after a real place. The term la-la land is coined from the initials of the city of Los Angeles, home of Hollywood, alluding to the fictitious nature of the movies, sets, etc.

Santa Monica's Smokers must retreat to indoors because of new ordinance

New Laws are in Affect.. see www.SMDP.com - SM Soking_ban_takes_effect_today

So all of Santa Monica's Anti Smoker residents can now sue each smoker for fouling the air. And all property owners and managers have to take on an extra burden to publish the information to the tenants.

OK then the smokers will get themselves declared a protected class as they are "Disabled" and must give in to their addiction. Since they can not stop themselves and therefor not liable to the other hostile tenant. Then the rental property owner who was providing a needed service (housing) is now the new victim as they both sue the housing provider. One for protection as a Disabled renter. One for maintaining unsafe housing near a smoker.

I see dreaded litigation ahead. Santa Monica is leading ahead of the curve and making trouble for many. Are you OK with the city outlawing everything?

Smokers are prosecuted by Anti Smokers. What is next? Surly it is not an Anti Pot Smokers of Santa Monica group doing this. Now I have to notice tenants of their right to sue each other over smoking on balconies.

Personally I do not care what they smoke. The real results that affect me is that this rule forces all smokers inside, the only space left. I just have to scrape the tar and nicotine goo off of the walls and ceilings before we clean and paint between tenants. Uggh Ugly.

IMHO We housing providers can handle this. But it can get out of hand in the future.

Working to protect your RE Assets
Keith Lambert

2 bedroom apartment on the market

2010-06-28T11:51:00.000-07:00

It happens rarely but it happens... We have a very cool 2 bedroom apartment for rent.

Keith Lambert | LambertInc.com | (310) 391-0821

931 Euclid St, Santa Monica, CA

Top floor unit! Best area of Santa Monica! Walk to Montana Ave. for shopping and nightlife.

2BR/2BA Apartment

$2,650/month

Bedrooms	2
Bathrooms	2 full, 0 partial
Sq Footage	Unspecified
Parking	2 dedicated
Pet Policy	Conditional
Deposit	$2,850

DESCRIPTION

This unit has the best views in the building!

Southwest to Palos Verdes and the Ocean.

-

High angled ceilings. White Tile in Kitchen. Very clean. Lots of wood cabinetry for storage.

Fresh paint. Nice berber carpeting.

-

Elevator Building. Parking is under the building in a gated garage. All electric. Full Kitchen.

Laundry in the unit and in the shared laundry room. Even a small sun deck on the roof if you need a tan.

see additional photos below

RENTAL FEATURES

- Central heat	- High/Vaulted ceiling	- Living room
- Dishwasher	- Refrigerator	- Stove/Oven
- Washer	- Dryer	- Laundry area - inside
- Balcony, Deck, or Patio	- Cable-ready

COMMUNITY FEATURES

- Garage parking

- Laundry on-site

- Elevator

ADDITIONAL PHOTOS

Front of the building	Living Room Fireplace
Interior of Unit	Some of the view

Contact info:

Keith Lambert

LambertInc.com

(310) 391-0821

Equal Opportunity Housing

Posted: Oct 20, 2010, 9:14am PDT

It is a good location and has 2 parking spaces. Wow.

Market rents for this area used to push up near $3,000 per month. Now at 2,500 to $2650 ish. This one was upgraded with better kitchen and has 2 parking so is worth $2750.

What will it rent for is to be seen. Make an offer quick if interested.

KBL 310-391-0821

Poll in LA Business Journal on LA Rent Freeze

2010-05-13T12:32:00.000-07:00

Please Vote on the LABusinessJournal.com Poll.

The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.

The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to study it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.

Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.

Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"

www.labusinessjournal.com/

Rent Freeze issue for LA City Council - 2010

2010-05-13T12:20:00.000-07:00

Dear Councilman Rosendahl,

Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.

The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)

The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!

Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.

The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.

Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.

It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.

I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.

Thanks for considering this point on the topic.

Sincerely Keith Lambert
310-391-0821

Market - great for buyers

2010-04-22T12:43:00.000-07:00

As I review the apartment buildings on the market I see a lot of better and better returns available.

If you, like me, prefer the positive cash flow of an apartment building to the other types of passive income out there searching for your investment capital then please give me a call. I'll happily share the ones that I like in the West Los Angeles market.

The local area is still holding strong in the rental market. Sure with the market downturn the price of an apartment may be a little more flexible. But not off my much. Apples to Apples rents on the few units that do turn over are maybe down 12 to 18 %. But that does not mean you can not make the bills and have a good positive cash flow.

With the right amount of down payment you can win an excellent return and cash flow.

Let me know what you like.

Keith Lambert
310-391-0821

Single Family Home - Open on Sunday 12-3 pm

2010-03-27T14:04:00.001-07:00

Sunday from 12 noon to 3 pm. Come preview this nice family home.

House and Guest House in the Culver City Zip on the Mar Vista boarder.

Great upgrades to the home make it a very good deal.

Keith
310-398-3272

Passage of the Healthcare Bill will have impacts on the markets.

2010-03-22T15:24:00.000-07:00

"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW. " Og Mandino. And wondering what kind of action will happen on Healthcare reform was certainly on everyone's mind last week. But what does this mean for the markets and home loan rates?

Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.

But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."

While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.

And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.

Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.

The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.

Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a 360,000 person increase from the prior week. It easily could have been far worse. The labor market continues to be weak. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

If the employment and local real estate market continue to improve, as they have in some ways, we will see some improvement in the feel for the economy. The ever elusive "consumer confidence" level that we hear about from time to time.

If you or someone you know would like to learn more about buying a home, have them give me a call.

Keith Lambert
310-398-3272

3 headlines that together say something good.

2010-03-19T07:43:00.000-07:00

3 LA Times headlines all on page B2 send a good signal. – “Home Prices Rise 11.2% in the state” “First Time Jobless Claims Decline slightly; Inflation Remains in Check” and “30 year Fixed Rates Edge Up” – Now that looks like the light at the end of the tunnel I was hoping to see. This is the combination that signals a good move in the real estate marketplace.

If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.

IMHO

Keith Lambert
www.REList.net

Westside Real Estate in Review - 2009 RE info on Single Family Homes

2010-02-23T08:38:00.000-08:00

Westside Real Estate in Review

The real estate market from late 2008 through the fall of 2009 was characterized by uncertainty and falling real estate prices over those many months. Below you will find information accumulated from the Multiple Listing Service provides an overview of the sales activity of 2009.

----------------------------------------------------------------------

Venice - 120 houses sold with an average days on market (DOM) of 76 days. The average price per square foot was $656/ft down from $784/ft from the prior year. The highest sale was 1311 Abbot Kinney Blvd which sold for $5,600,000.

Palms/Mar Vista - 235 houses sold with an average DOM of 55 days. The average price per square foot was $481/ft down from $531/ft the prior year. The highest sale was 4056 Marcasel Avenue which sold for $2,500,000.

Santa Monica - 188 houses sold with and average DOM of 72 days. The average price per square foot was $744/ft down from $835/ft the prior year. The highest sale was 703 Palisades Beach Road which sold for $6,500,000.

Brentwood - 217 houses sold with an average DOM of 94 days. The average price per square foot was $767/ft down from $969/ft the year before. The highest sale was 25 Oakmont Drive which sold for $15,150,000.

Pacific Palisades - 197 houses sold with an average DOM of 96 days. The average price per square foot was $678/ft down from $835/ft the year before. The highest sale was 1730 San Remo Drive which sold for $14,500,000.

Marina Del Rey - 25 houses sold with an average DOM of 121 days. The average price per square foot was $460/ft down from $542/ft the year before. The highest sale was 143 Voyage Mall which sold for $2,275,000.

-------------------------------------------------------------------------------------

Bank real estate lending policies have become very restrictive in 2009, especially when borrowing for homes selling for more that $1 million dollars. Loan applications are getting much more scrutiny. Inventories of homes grew from January into the summer months, including higher end properties putting downward pressure on prices.

Buyers are being extremely selective and in many cases were looking for "a deal" and those deals were out there. Westside properties were not immune to the downturn, though when compared to the San Fernando Valley and other neighboring areas real estate prices did not fall nearly as far.

Now, with interest rates at or near historic lows, we are seeing prices for Westside real estate firming. We have been witnessing a large reduction of available inventory on the Westside which, in some cases is pushing pricing upward especially for homes in good neighborhoods and priced under one million dollars.

The above review is useful. I agree with the last paragraph. But maybe it would be more useful if it also listed the lowest sale! LOL

Keith

Happy Holidays

2009-12-15T12:50:00.000-08:00

Here in our area we have some cool holiday traditions. There is a Boat Parade out in the Marina Del Rey harbor that is fun. But at night hard to get a lot of good photos.

In Venice on the canals there is a simular parade but on the smaller scale.

Here are some photos to share. ( Thanks to YoVenice.com )

The Recession this far...

2009-12-14T10:25:00.001-08:00

Last week brought some market action when Fed Chairman Ben Bernanke discussed the recession, commenting that our economic recovery still faces "formidable headwinds." As you can see in the chart below, the current recession we have been in has been the longest in nearly half a century.

Because negative economic comments or news causes money to flow out of Stocks and into Bonds, Bernanke's words helped Bonds and home loan rates to improve early last week...but these improvements were short lived.

Bond prices and home loan rates responded poorly to the Treasury auctions of last week, as the Treasury instruments being auctioned off are in direct competition with Mortgage Backed Securities...and the continual record amounts of supply hitting the market requires record amounts of buying to take place as well. And remember - the Federal Reserve is winding down their Mortgage Backed Security purchasing program, so as they stretch out and ration their remaining purchases through the first quarter of next year, the reduced amount of their buying just adds to the problem.

And as with any item, when there is lots of supply and diminishing demand - Economics 101 tells us that the price of that item will subsequently go down. So as Bond prices go down, home loan rates go up - and last week saw home loan rates increase by at least .125% across the board.
Also adding to selling pressure on Bonds in the latter part of last week were several bits of good economic news. First, the Retail Sales Report for November was better than expected, marking the third monthly increase over the past four months. It appears that lower prices and good deals are helping to spur some buying activity, though it remains to be seen how this will impact retailers' bottom lines. Consumer Sentiment was also reported quite a bit better than expected.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Coming this week... Wednesday will also bring a read on the housing market with the Housing Starts and Building Permits Report, as well as the Interest Rate Decision and Policy Statement from the Fed, following the end of their regularly scheduled Federal Open Market Committee meeting. A change in rates isn't expected - but any comments about inflation in the Policy Statement could rattle Bonds and home loan rates.

Fingers crossed.

Keith L.

There is a differance: Income Property -vs- Single Family House

2009-11-27T11:15:00.000-08:00

While it is nice to have growth in value of your home... That does not build long term wealth for you and provide for your financial security if you have just one home for your family to live in. What happens if you need to sell it? You need separate income property. And a savings account at a bank. And a bit of investment money in something like an investment in a growing business or with a stock broker (lettering them pick the business). And maybe a whole life policy if you do not just want a social security check to retire on.

This article is on point... Not all Real Estate is your House!

Nov. 22, 2009

View of home as investment needs to change, expert says
BY KATHLEEN M. HOWLEY BLOOMBERG NEWS

Kajal and Vishal Dharod paid $559,000 in 2006 for a new four-bedroom house built in Rancho Cucamonga, Calif. Today, it's worth about $360,000.

"We don't know how we can come back from a loss like that," said Kajal Dharod, 29, a first-time homeowner with a $4,200-a-month mortgage. "Buying the house was a mistake."

American homeownership, once considered a path to wealth, is now leading to disillusionment.
"We always talk about homeownership as being the American dream, but during the last decade, people forgot it's shelter and started thinking of it as a fast way to make or lose money," said Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies in Cambridge, Mass. "The quicker we move back to seeing real estate as a place to live, a place to put down roots, the quicker the housing recovery will strengthen."
Home-price growth in the next decade probably will average about 3.5% a year, based on …

and it concludes with

"After every major bust, there is a rethinking of that asset class," Carson said. "I think people will change their views about real estate and begin to look at it as a long-term investment that provides shelter, rather than a way to make a quick buck."

Dah! Real Estate for a Quick Flip has always been a very risky thing. Long Term Investment in income producing real estate is for the person that is looking for long term security.

And it irks me that when most think of Real Estate they only think of a Single Family Home. Or maybe a condo or townhouse. Well... Wake those folks up to the ownership of rental property as an asset class. Maybe start with a small Triplex or a 5 unit building. Then trade up. Sure it takes work. And patience.

As long as the business leaders in US Corporations look to just make enough to get a stock bonus to pay off we as a country will continue to fail. As long as real estate buyers look to buying a single family home for a quick profit we will have a messed up financial situation.

I believe in Long Term Investment in income producing real estate. If you do as well then please call me and lets get you in a good property while this is a buyers market.

Keith
310-391-0821

Thanksgiving thoughts - Buyers be Thankful!

2009-11-26T07:51:00.001-08:00

Something to be Thankful for. Balance.

Balance is a good thing. Today in the Los Angeles Times - Page B2 -
"Fannie Mae to tighten mortgage lending rules" Minimum 620 credit score and no more than 45% income to debt.

Followed by this story "Interest rates drop, matching record low" where the review how rates are now matching a record low of 24 years at 5.06%. But very few are applying.

If the system was not cranked wide open by too loose money we would not have had the blowout. Now the scarcity of banks willing to lend and the prevalence of regulators to be arbitrary and capricious leaves the lenders scared to actually extend credit.

So all you borrowers be prepared. Expect bigger down payments to be required. Prepare for slow responses. Prepare for delays. Be aware that the lenders are chicken for good reason. Sure it may be staffing reductions. And the hoops seem unusually silly.

But the reality is... If you do persevere you can take away some really terrific loan rates once you get approved!

So be Thankful. If you have the ability to buy right now you are likely to get better prices and the best rates for the money borrowed. Now that is leverage that will pay off for buyers with vision for long term profits.

Let me know if you need an introduction to a loan broker. I have two good guys that I can introduce you to.

Keith
310-391-0821

Time and Date. Back to 1983 Unemployment numbers

2009-11-09T11:08:00.000-08:00

"TIME IS MORE VALUABLE THAN MONEY. YOU CAN GET MORE MONEY, BUT YOU CANNOT GET MORE TIME." Jim Rohn. And while this is certainly true, home buyers and folks receiving unemployment benefits both got the word that a bit more money and time is coming their way.

Just on Friday, President Obama signed into law a bill that extends unemployment benefits and the First Time Home Buyers tax credit, which is also being expanded to include benefits for homebuyers who aren't on the first time around buying a home. If purchasing a home is in the cards for you or anyone you know, you can get all the details of the homebuyer's tax credit in this week's Mortgage Market Guide View article below. But first, here are a few additional highlights from last week...including important job market news.

Last week's official Jobs Report showed that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were widely expected. In addition the Unemployment Rate rose to 10.2%, quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983.

However if I think back to that time we had the growth of the personal computer and a few other technological changes to the world we lived in. Back then in 1983 a Cell phone was plugged into your car or as big as a lunch box. It was a rare business person who owned a personal computer of any type.

We may not be able to get back time but we are back to a time of High Unemployment. What will be the driving force of the work force of our next faze?

Movies are digital and FX is all in a computer. Technology is building remote controlled planes to drop remote controlled bombs. Pilots are so bored that they overshoot their destination by an Hour.

Banks and their regulators are being duplicitous and difficult to fathom. The Government is giving them money fast. Telling them that this money is so you can loan. Then the other department of the government is looking over their books with a fine tooth comb to make sure that they only make loans of the highest caliber that will surely not default.

So how do we Real Estate Agents sell anything if the loans are not going to be approved and funded?

What we need now is strong sources of Employment. Strong borrowers. And Strong Banks willing to make the loans. This we can all see as the three legs of the support for our marketplaces.

It is the Holiday shopping season next. Here is to hoping the numbers are good for us all.

Keith

Looks like it is getting healthier. Do you agree with the news?

2009-11-02T23:13:00.000-08:00

Last week the Commerce Department reported the Gross Domestic Product (GDP) for the 3rd Quarter. As you can see from the chart, GDP rose by 3.5% for the first gain in a year and the strongest reading in two years.

While most media outlets were giddy about the news and started the hype that the recession is behind us, it's important to remember that there's more to the economic data than just the headlines.

The temporary "Cash for Clunkers" program has now expired, but was a big part of last quarter's GDP gain. If we remove it from the total, the reading would have been a more modest 1.9%. But there is even more to the rise in the latest GDP number that is just temporary...

Also bolstering the economy has been the $8,000 first-time homebuyer tax credit - which is set to expire at the end of this month. Many home buyers have been taking advantage of this program - and wisely so.

New Home Sales were reported last week, showing a 7.5-month supply of inventory. While that number is slightly worse than last month's 7.3 reading, it's still a big improvement from where we were in January. Back in January, inventory levels reached a high of 12.4-month supply! The improvement in housing inventories has been due in large part to the $8,000 First Time Homebuyer Tax Credit, which is set to expire on November 30.

There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30th, 2010 would qualify for the credit.

Another bit of news was the UCLA Anderson Forecast: "Recession likely ended this quarter"
In that report there is this line...

"Credit-impaired lower-income consumers can't spend the way they used to, and wealth-impaired affluent consumers won't,"

The Anderson Report further says that this Qtr marks the end of the recession.

Well now we all feel better knowing that this is the low point. Right? There are signs of activity. Some very good things. Maybe this is the low point and we are bout to begin the long slog back to normalcy.

Not the wild growth of the recent past but healthy productivity! We all will welcome that.

IMHO Keith

Shadow .... market of homes

2009-10-27T12:18:00.000-07:00

I know I have suspected that there are more foreclosures to come.

Really good write up on this topic in the Wall Street Journal.

"So where’s that long-awaited deluge of bank-owned homes that is supposed to flood the U.S. housing market? This “shadow” inventory has..."

It has been keeping a few buyers on the sidelines looking for a deeper bottoming out to the real estate in the local market. Reality Check. Buy if you find the one that works for you long term. Especially if you plan on living in it.

Now in the Income Property side. Revenue dependability is what we have most here in the West Los Angeles area. That reduces risk.

If you want money to be available for a dependable retirement cash flow... We should talk. There are some good options in the marketplace.

Keith L.
310-391-0821

Details... financing is the "Devel in the Details"

2009-10-26T11:27:00.000-07:00

THE DEVIL IS IN THE DETAILS... Or so the famous saying goes. And when it comes to really understanding the various reports and events unfolding in the economy, it's important to take a look at the details - not just the headlines. Here's what we know...

On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month's number could climb higher again, as oil and natural gas have both been on a tear higher lately.

In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren't even aware of it...so please let me know if you or someone you know needs more information - the clock is ticking!

Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April.

In other news, 3rd quarter earnings season continues, where companies report their status as of the end of September. While many companies are beating expectations, it's important to realize that many of those companies achieved better earnings by cost cutting and layoffs, not from increased sales. This is a big disconnect between Wall Street and "Main Street". Stocks are rocketing higher based on these "positive" reports, but the cost cutting and job cutting measures can only go so far...you can't simultaneously grow the ranks of unemployment - and then grow your business, hoping for increased sales to those same people who are without jobs.

Last week's Jobless Claims numbers seem to confirm this as Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people's unemployment benefits expiring, without them having been able to find jobs.

Also worth noting is the news that ratings agency Moody's lead analyst, Steven Hess, said that the US needs to cut its deficit or it could lose its "AAA" rating in the next 3 to 4 years, which we have maintained since 1917! Think of all we've been through - two World Wars, the Depression, three Wall Street collapses and major terrorist attacks... yet our credit quality has maintained that AAA rating, allowing us to issue debt at the most favorable rates. Hess went on to say that if the US doesn't "get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy." And just like on a mortgage when the credit rating gets reduced, interest rates move higher. This will definitely be something to keep an eye on in the months ahead.

After all the week's action, Bonds and home loan rates ended the week slightly worse than where they began. How much longer will we have good Interest Rates is a good question.

If you have a Crystal Ball and see the next moves on the market... Hit comment and tell us where you think it is going.

Keith L.
310-398-3272

"Finding Common Ground" Forum

2009-10-22T13:39:00.000-07:00

Dear Friends,

Thank you so much for helping to make yesterday’s Housing Forum a success! We are excited that so many of you took time from your busy Wednesday to join us in the spirit of understanding and cooperation.

Please take a few moments to answer these questions for us so we can learn and improve future programs for the public. Your feedback is VERY important to us!

1. What were your overall impressions of the event?
2. What were your favorite parts? Why?
3. What things would you change or improve? Why?

Thank you again for your time.

Sincerely,

Deborah Freeman, Legal Assistant
Santa Monica City Attorney's Office

Dear Deborah,

Thank you for the event at the Annenberg Community Beach House today. It was a nice venue and a nice idea to have a beginning of dialogue about actual compromise and meeting of those who are most polarized in this city. Some compromising may eventually come of it. There were opportunities for sharing that may lead to more understanding and useful compromises in the future.

I frequently work hard to find common ground with my tenants (customers really) by listening and trying to learn what they really need or are on about. And in return managing their expectations of what I can do for them. Housing providers are not the everything solution to all the ills of the world in which we live. And some in the community feel we are the worst thing and use a term like Landlord with all the old worst connotations that they can attach to it. As if all landlords are a Charles Dickens character.

And therefore the “Landlord” term may make finding common ground hard for those who do not trust that a Housing Provider is a professional businessperson who does have good intentions to live up to the business relationship with the tenant.

In overview… One or two questions that were posed to the panel may be the hot items that you deal with on a regular basis but are not ones that landlords ( I prefer Housing Providers) are able to help solve. In many cases the smoking issue is one that we cannot regulate. And the common complaint about noise is often beyond the pale of our control. The only item in the post seminar discussion panel questions section that seemed on point was the one related to maintenance. And of course as asked – relating to a new owner – it was about giving the owner a chance to effect repairs and communications going back and forth so that the tenants know what to expect and what the new housing provider will be working on first. The opinion of one fellow property manager in attendance was that 3 of the 4 questions posed were absolutely useless to the property owner side of the issue. After fully reviewing your web site I see that those are the items that were most important to the Consumer Affairs division but not necessarily related to "Finding Common Ground" between landlord and tenant.

I hope that in the long term these meetings can work on problems that we (Tenants and Owners/Management) have to deal with and will actually make a difference. The difficulty to be overcome was evidenced by one of your lead speakers. It was said by the City of Santa Monica elected official who spoke, that he did not believe there was room for compromise on this issue. It is not just the Housing Provider side that must be brought to the table with an understanding of what effective and beneficial thing can come of this.

Such Polarization and refusal to deal with issues is very tough for us. My expenses are up. Much of it is due to new city fees and city taxes. Yet there was not an appropriate place in yesterday’s meeting to review that. The Housing Providers are not able to be the solution to all of societal ills. Smoking or bad behaviors between neighbors are just the tip of the iceberg.

I look forward to future meetings like this where there are more insights to each other’s side in the future.

Sincerely,

Keith Lambert

Heat is rising on the financing side

2009-10-19T10:45:00.000-07:00

"THE HEAT IS ON." Glenn Frey. While cooler temperatures are beginning to descend on many parts of the country, Bonds and home loan rates are feeling the heat and pressure from several fronts. Here are some details...along with why it's important to act soon to take advantage of current home loan rates, as they may never be seen again.

Last week, the Core Consumer Price Index (CPI) was reported higher than expected, indicating that inflationary forces may already be underway. Remember, inflation erodes the value of the fixed return that a Bond provides - therefore, inflation is harmful to Bonds and home loan rates. Just the hint of inflation can cause home loan rates to worsen, which is what we saw last week.

And here's a very interesting and important note - when looking at these CPI numbers, it is important to understand the effect that the "Cash for Clunkers" program had on this index. The Cash for Clunkers program was very "creatively" accounted for as a reduction in the sales price of automobiles, which had to have a dramatic effect on lowering the CPI that was reported. Imagine how much higher CPI would have been had this "creativity" not been used. As even more inflationary fears creep into the economy, home loan rates will continue to rise.

Also adding pressure to Bonds and home loan rates is the Fed's plan to ration out their remaining purchases of Mortgage Backed Securities. The Fed has purchased around $950B year-to-date out of the $1.25T allotted for the program, which is now set to expire March 31, 2010. This means the Fed will be averaging about $14B a week in purchases, a lot less than $25B or so they had been doing up until recently. And anytime demand for an item slows down...including Mortgage Backed Securities...the price goes down. And in this case, it means that home loan rates will move higher.
The bottom line is that the heat is on...and home loan rates are starting to rise already. While home loan rates are still incredibly low, it is clear this won't last much longer - and we may not see rates at these levels again in our lifetimes.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

If you have the ability to get qualified and a suitable down payment to purchase, you are at the right point in time. The right property to invest in is not that hard for a professional agent to find. Give me a call if you want to discuss your own investment plans.

Keith Lambert
310-391-0821

Federal Reserve Chairman Ben Bernanke - We are listening

2009-10-13T20:44:00.000-07:00

"LISTEN TO WHAT THE MAN SAID." And those aren't just the words from Paul McCartney's hit song of the same title...they're also words of advice for anyone who's considering buying a home or refinancing.

Last week, Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present...it will most certainly become a problem down the road. So why does this matter if you are considering purchasing or refinancing? Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed's purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight - and the reduced demand for these Bonds is also driving home loan rates higher.

Bottom line: home loan rates are already on the rise, and we won't likely see these low historic levels again.

Interest rates are still very near historic lows - George Washington couldn't have gotten a better interest rate - and the opportunity these low rates present is huge for homebuyers. But the Qualification process is harder and Longer.

So get in line with all your paperwork and tax returns and save up a real deposit. No easy qualifiers or no money down loans exist today.

On the topic of inflation - Gold has been on a tear higher of late, reaching a record high of $1048 an ounce. Remember that Gold is seen as a "safe harbor" or hedge against a falling Dollar and inflation - as Gold is not likely to lose much value in periods of rising prices. Again, fears of future inflation are pervasive, particularly in light of the massive economic stimulus that has been injected into the US economy...and inflation will drive home loan rates higher. The latest spike in Gold is more likely attributable to the Dollar's recent decline, but both factors are somewhat at play.

There are deals out in the real estate market. I like Income Real Estate as a Safe Harbor investment. But it is not as liquid as gold or bonds. Investing in Residential Income properties is more long term and inflation resistant than most other investment vehicles. And as it matures and pays down the mortgage it can become a Cash Cow to retire on the cash flow. Not just a Sell it All proposition.

Hit the comment button and tell me the Safe Investments you like in today's market.

Sincerely,

Keith

NOD's in the houseing market

2009-08-24T15:43:00.000-07:00

Found an interesting post or two about Santa Monica at
http://www.doctorhousingbubble.com/

He has a fun style. Interesting. Still is an alarmist but he does have a few good points. Many agents have taken listings at unjustifiable prices and have to chase the market downward. He used this to parley it into a article about higher end areas like Santa Monica finally getting hit by the housing bubble. Maybe so to some degree.

I have some friends and associates that are going out to the hard hit areas far afield to pick up the cheap stuff like houses in Los Vegas and in Florida. Writing a check for the full purchase price.

One item is that the Single Family Home market is flooded and getting a few more in the pipeline from NOD's (bank notice of defaults that soon will be foreclosed upon).

Santa Monica will not be that cheap where $50 to $80 thousand will buy you a house but it will be a bit dicey on the Westside when all the pent up NOD volume comes to the foreground. Keep your ears posted for some great deals.

The bigger question is how is this going to affect Residential income properties? Maybe the loss of investors for Multi Family Properties is due to the limited capital of those potential buyers going out to suck up the bottom from other far ranging markets.

Buy Low and Sell High. I prefer that strong monthly Income myself.

Let me know what you prefer to buy at this time.

Keith L.
310-391-0821

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

2009-06-15T13:51:00.000-07:00

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

2009-06-01T12:43:00.000-07:00

"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

2009-05-30T11:23:00.000-07:00

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

2009-05-28T10:12:00.000-07:00

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

2009-05-19T09:25:00.000-07:00

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

2009-05-05T23:05:00.000-07:00

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?

2009-04-20T10:40:00.000-07:00

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

2009-04-09T10:14:00.000-07:00

UNIT MIX
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:
$1,345,000

Annual scheduled gross income:
$111,884.52

Year built: 1960

Zoning: LAR3

Lot Size: 7492

Building Square Feet: 5656

Parking: 11 Spaces

COMMENTS

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

FINANCIAL DETAILS

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:
$38,000

Scheduled Monthly Income:
$9,323.71

Scheduled Annual Income:
$111,884.52

To learn more and see additional Photos
see: http://www.lambertinc.com/forsale.php

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

Are they speaking of turning points?

2009-04-06T11:07:00.000-07:00

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?

Keith
310-398-0821

In support of financial optimism

2009-04-02T10:29:00.000-07:00

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. <"><
310-391-0821

Window of Opportunity?!?!

2009-03-24T09:47:00.000-07:00

"IF A WINDOW OF OPPORTUNITY APPEARS, DON'T PULL DOWN THE SHADE." Tom Peters.

On Wednesday, the Fed announced that over the course of 2009, they will purchase an additional $750 Billion of Mortgage Backed Securities, as well as $300 Billion in long-term Treasuries, primarily to help shore up the housing market and keep home loan rates low. On the announcement, Bonds exploded higher, leaving Bond prices within whiskers of the best levels ever.

However, it's important to understand that while their actions may keep a lid on rates moving higher, they may not cause them to move lower. While we know there is little inflation at the present time, the chatter of future inflation could have a negative impact on Bonds and home loan rates, or at least stifle any improvements.

Although the media is already spinning it differently, this may not be a time to stay on the fence, hoping and waiting for lower rates and/or lower real estate prices. Home loan rates remain within inches of all-time historic lows, but may not necessarily move significantly lower based on this purchasing plan - waiting is a very risky move.
More good news last week, as Housing Starts for February came in better than expected and actually increased for the first time in eight months. In addition, Fed Chairman Bernanke stated the recession should end in 2009 and that he is confident of the long-term outlook for the US economy.

Also, an update on Mark-to-Market - the accounting rule which has had a devastating impact on the financial markets - which we have discussed many times, including in last week's issue. The Financial Accounting Standards Board (FASB) agreed that it will propose to allow companies to use more "leeway" in applying the accounting rules they use to value their assets, and planned a final vote for April 2nd. If this rule change is approved, it could result in better first-quarter financial statements for companies that have been affected by this rule. Stocks have been moving higher lately in the hopes that Mark-to-Market will be fixed, and a resolution could help Stocks further improve.

So what are you going to do with your Cash? Leverage into cheap priced Real Estate or buy Stocks?

If it is Real Estate call me.

Keith
310-391-0821

BTW If you need a referral to a Stock person send me a note.
Gary with Wealth Pinnacle is a very good guy to know.

LA City politics. No on Mesure B

2009-02-24T10:57:00.000-08:00

At election time I allow myself to make recommendations. I feel that the City/State/Federal regulations and taxes affect your and my real estate and are therefore fair game for this blog.

Often the best vote is NO on many things. It only should be Made Law or funded for the public good IF it is overwhelmingly agreed on as needed and worth it.

So that said, please see these two links. After reviewing them, you too will agree Measure B should get a NO vote.

The Cover Up Continues
http://www.citywatchla.com/content/view/2034/

and

Union Members: Solar Plan Not Cost Efficient
http://www.citywatchla.com/content/view/2035/

OK so Real Estate has gone down some in the market.

2009-02-21T10:20:00.000-08:00

I work in a different market place for investments than what is commonly referred to as "The Market" that usually means a stock market trading a piece of paper that represents an interest in some company or asset. When I deal with Investment Properties we are dealing with an asset that you get a real title too.

Compared to the over valued paper being peddled by wall street for the last few years, Income Real Estate is rather secure.

Yesterday in the LA Times Business section...
http://www.latimes.com/business/la-fi-commre20-2009feb20,0,4393076.story

This story says Commercial Properties are down 15 %
and that Apartment Buildings are down 11.5 %
in the nationwide averages.

Not bad compared with all that stock market stuff.

Just read your last 401 K report and compare the amount you are down. Then think about how much you are diversified if it is all with a Fidelity account or E-Trade. No matter how much it is spread around in the stock market it is still the stock market. Some of your net worth needs to be in a performing real asset like an apartment building if you want a secure long range future.

With today's prices now in a bit of a "Market Dip" it may be possible for you to use your cash to pick up a sound investment for your future. If you are not retiring in the next 2-3 years Income Property should be in your portfolio.

Call me to review the options.

Keith Lambert
310-391-0821

What makes a good starter investment property?

2009-02-09T10:40:00.000-08:00

On Sunday I toured several properties with clients looking for a starter investment property. We looked at sites Downtown, Midtown, and Mid-Wilshire.

8 units or 6 units or 4 units all with good strong rent rolls that bring in a healthy revenue stream. 8 units with dilapidated conditions. 6 units in good condition in so so area. 4 units in a sweet area in clean condition.

All three have the potential to work. All three have pluses and minuses. The key is what will keep the revenue up best in a market where rents are sagging? Which one will a lender be more likely to give you better terms and easily fund. (Lending is very important today, more later) Which one will give the best appreciation down the road? And be easier to sell?

At some point one must move out of your starter property and roll into a bigger better apartment building. Hope is that the 1031 exchange will then produce real income for reaching your financial goals.

Keeping those goals in sight is important when weighing the questions above.

Keith L.

*hit Comments to weigh in on what is most important to you.
Revenue flow/lender marketability/manageability/appreciation/resale-ability

New LII Listing on Clubhouse Ave - 6 Units

2009-01-27T22:49:00.000-08:00

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
310-391-0821

We are looking for a crystal ball now and then

2009-01-27T20:46:00.000-08:00

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.”

http://www.dsnews.com/index.php/home/news_story/2459

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.
www.REList.net

For Rent - 2 bedroom 1 bath at Santa Monica Beach

2009-01-27T12:23:00.000-08:00

FYI for anyone looking for a cool beach side pad...
http://www.postlets.com/rts/1695620

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

See the link for photos and map.

Keith <"><

The Markets and Lending this week.

2009-01-26T10:43:00.000-08:00

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
310-391-0821

New season is emerging!

2009-01-19T10:29:00.000-08:00

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

"LIVE EACH SEASON AS IT PASSES." Henry David Thoreau.

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.

Kieth
www.REList.net

New LII Listing on Keystone - 11 Units

2009-01-12T10:54:00.000-08:00

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.
310-391-0821

Tuesday Broker Caravan

2009-01-07T13:23:00.000-08:00

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.

Take a differing path to wealth. Question the Social Norm.

2008-12-24T00:37:00.000-08:00

Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are even incapable of forming such opinions. - Albert Einstein

No mater how I try to explain it ... A stock broker or trader will not understand or "get" what I'm talking about when I say that there is to0 much money in the stock markets chasing to few companies of value. Over capitalized to the extreme. Maybe it is prejudices of the stock market environment or mentality.

Then to compound that failure to get it... The companies that do not pay the owners (no stock dividends paid out now or ever) are (in my opinion) a loosing cause to own. As if to say that if the business does not pay it's owners then why own them. And the Stock guy says "because I can sell the stock for more money in the future." AND I contend that the fact that there is a Next Bigger Fool does not make the company that valuable.

I feel that an asset needs to have a value and a cash flow that leads to the values. If the overhead, weather it be salary for overpaid executives in jets or the costs of a plumber for an apartment building, gets to high then there is little or no profit that year. But if you get the costs down and still get the revenues (rents) then you make money and the owners (or stockholders) get their share.

If a company is "Public" and investors buy those stocks to hold, why does it seem ok for them to pay employees more then they owners? Executive salaries that include stock and perks and golden whatnot's. And the Boards allow this?!? The general populous of America has been duped. We watch "Who Wants to be a Millionaire" and dream of the stock market carrying us off into retirement bliss.

Surprise! It was a House of Cards. House built on Sand.

If you want real security you really need a foundation that stays put. Buy some real Estate that is income producing like an apartment building and treat your tenants well AND they will pay you every month on the first.

If you want my help, call me, I'll show you how to make it pencil out.

Keith L.

Planning for the future L A City and LAX

2008-12-21T17:53:00.000-08:00

In the news:

LAWA/City of LA celebrated its first 40 millionth passenger of the year. The 40 million number is significant because after the 40 millionth passenger of the year was reached, the overflow was supposed to be handled by Palmdale Intercontinental Airport

Palmdale... Are you kidding. All those homes out there are struggling the worst for the economic downturn. The big push never produced the Intercontinental airport.

Orange County had the chance to turn the old base into a good airport.

Long Beach is trying to take some traffic but pilots are forced to do wild maneuvers on takeoff and shut down early in the evening so not to disturb residents to much.

So the LAX situation will remain a divisive point for those who live near it. In Westchester. But for the rest of us Angelinos we are thankful to have one of the best sources of travel into and out of the states on our back doorstep.

The LAX Airport is a vital part of the Los Angeles economy. Needed and used by a lot of business. From international shipping to Hollywood movie stars. And all the other vacationers into and out of Los Angeles and the USA in general.

We are over 40 million passengers and the holiday travel blitz is upon us. Thank goodness the fuel charges are down. Thank goodness those Controllers in the towers keep the pilots sorted out and traffic smoothly flowing into and out of LA. Keep bringing those tourists to Disneyland and Universal Studios and Venice Beach.

Even if we were supposed to get some relief from a neighboring city, it is nice to have all that business helping this local economy. And our Real Estate values. And our rent rolls in our many rental apartment buildings.

It is the Season to be Thankful. I am thankful for LAX and it's big industrious infusion to the Los Angeles economy.

Keith Lambert
www.REList.net

Will our American Business' Leaders ever learn?

2008-12-19T18:39:00.000-08:00

I found a very good bit that really sums it up. We have produced bad results over and over again by making same mistakes over and over.

Part of that Garbage in get Garbage out type thing. Pay people to produce the wrong result and get the worst case end result. Over and Over and Over again. Planing and thinking must change to be 3 and 5 year and even to 10 year best results. Or go buy some Lotto tickets and try to win on the really short term. With longer goals and better real planning We can be better than the offshore businesses. But if we are only interested in the next quarterly result... Same old bad decisions to get paid.

See http://blogs.bnet.com/ceo/?p=1576 "When Will We Ever Learn?"

It is short and covers the topic well. BNet is good stuff.

Keith L.

Better loans available ?

2008-12-16T20:52:00.001-08:00

Bonds and home loan rates spent last week testing their previous best levels of 2008, and finally rallied on Friday to reach their best levels not just of 2008 but of the last five years. Stocks, meanwhile, were under pressure throughout the week waiting to see whether Congress would approve emergency loans for GM and Chrysler. While the House of Representatives approved the measure Wednesday evening, the Senate rejected the $14 billion bailout for the US automakers on Thursday evening, citing a lack of wage concessions by the United Auto Workers (UAW). Friday, the White House announced that the government may be willing to use Troubled Assets Relief Program (TARP) funds to prevent an immediate collapse of the auto industry. One thing we can be sure of in this matter is that the volatility for both Stocks and Bonds will continue while this issue remains unresolved.
There were other important happenings in Washington to note last week. Five members of the House Financial Services Committee are sponsoring a bill that would force the SEC to reinstate the uptick rule. The uptick rule is a former rule established by the SEC that requires every short sale transaction to be entered at a price that is higher than the price of the previous trade. So what would the reinstatement of the uptick rule mean for Bonds and home loan rates? The reinstatement of the uptick rule would do a lot to quiet the excessive volatility in both Stocks and Bonds.
In other important news to note last week, the Retail Sales report for November showed that retail sales fell for a fifth straight month. Meanwhile, Initial Jobless Claims reached their highest level in 26 years. Both of these reports are indicative of the current economic climate, and given the events of the week in Washington, they had minimal impact on Bonds and home loan rates.
As mentioned above, Bonds and home loan rates rallied Friday afternoon to reach their best levels of the year. As a result, they ended the week .25 percent better than where they began. There may be an opportunity for you to reduce your home loan payments if you were looking to Refinance.

Let me know if you need a referral to a great Loan Broker who can get you the best rates.

Keith
310-391-0821

Market Forces... Moving for the better on some fronts

2008-12-09T09:34:00.000-08:00

The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative "solutions", the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates...with the possibility of refinancing should rates decline further.

In other news to note from last week, the Bank of England and the European Central Bank both cut their key benchmark interest rates in an effort to revive their sagging economies. The reduction in rates was expected as part of a global coordinated effort, and our Fed is widely expected to cut its benchmark rate during its meeting on December 16. While a cut by the Fed often causes home loan rates to rise - because a Fed rate cut can lead to inflation, which is the arch enemy of Bonds and home loan rates - the deflationary environment we are currently in may prevent home loan rates from worsening significantly after the Fed cut. This is going to bode well for all those apartment building loans tied to the LIBOR rates. Personally I'm Loving this.

Bonds and home loan rates tested their best levels of 2008 throughout last week, but could not improve beyond them. As a result, Bonds and home loan rates ended the week slightly worse than where they began... even in the midst of rumors of rates declining as mentioned above.

GAS PRICES SURE HIT A RECORD EARLIER THIS YEAR, BUT NOW THAT THEY HAVE IMPROVED! I have seen multiple stations here in Los Angeles with all 3 prices under $2.00. I did not think I would see these prices again in my lifetime. I thought for sure that once the consumer public had gotten used to $3.00 plus gas that it would never come down.

So what market forces are making me feel better today? Gas at a reasonable price & the loans on some apartment buildings some clients have are about to become cheaper and more affordable for their operating budgets. (and I manage some of those)

Those are very good things.

Think of all the handymen and service guys like plumbers who service apartments and homes all across America... Cheaper gas means they may afford better holiday gifts for their kids and wives this month!

Very good things.

Keith L.

Hot news on the market conditions today… See these story headlines!

2008-12-04T11:32:00.000-08:00

Treasury mulls plan to lower mortgage rates to 4.5%
Move would help homeowners and buyers with good credit, but would do little for troubled borrowers
http://money.cnn.com/2008/12/03/news/economy/treasury_mortgage_rates/index.htm?postversion=2008120319

How long will the recession last?
Longer than past downturns, and Wall Street's meltdown will slow the recovery…
http://money.cnn.com/2008/12/03/news/economy/karydakis.recession.fortune/index.htm

The details include:

…the fact that the recession is now already 12 months old, and clearly not approaching its trough yet, raises the distinct prospect that it will exceed the length of the 1973-75 and 1981-82 recessions (both at 16 months), making it the longest since the Great Depression (43 months, from August 1929 to March 1933). The crowd fond of making comparisons to the Great Depression will be quick to declare some kind of victory on this one.
Second, the prediction that this recession may end around the middle of 2009 is not unreasonable, but even if accurate it disguises the critical question: What kind of a recovery is likely to follow? The answer is: probably a gradual one, unlike the more typical (but not universal) pattern of the economy coming out of most past recessions roaring ahead, propelled by pent-up consumer demand.
The healing process of a deeply wounded banking system, that has already led to nearly $1 trillion of write-downs, will act as a weight around the neck of any economic recovery in the latter part of 2009. Banks will likely continue the slow process of recapitalization and cleaning up…

So a Gradual Recovery is what to expect. Do not look for a specific marker to show you the bottom of the market. There will not be one. Pull your Cash together and let’s buy you an income producing property.

Call me to review your financial options in dependable Los Angeles residential income properties.

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

Looking to move $ where? When? How Long?

2008-11-25T10:14:00.000-08:00

"THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes.

And what direction is our economy moving?

After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.

So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the "D" word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road.

On the inflation front, last week's Producer Price Index indicated that wholesale inflation plummeted last month - by the most since records began in 1947 - largely due to declines in energy prices. In addition, the Consumer Price Index showed that inflation at the consumer level fell by a record 1.0%, thanks again to lower costs of energy.

When it comes to the direction the economy is heading, the week did end with some hopeful news. Federal Reserve President Jeffrey Lacker said that an economic recovery could begin in 2009 as low interest rates, low energy prices, and less drag from the housing sector may shore up spending. In the meantime, Bonds and home loan rates spent much of last week trading near a key level of technical support called the 200-Day Moving Average, finally moving and staying above this level on Friday. As a result, Bonds and home loan rates ended the week unchanged to slightly better than where they began.

Secure Rents make investing in Apartment buildings, in the best areas of Los Angeles, a great option if you have the cash. If you do not want to just keep it in cash and want to get in on the Buyers Market we are in. And definitely if you are thinking to hold longer then 5 years, you really will do well in this market.

IMHO Keith L.
310-391-0821
Keith @ LambertInc. com

(remove spaces to use above email)

Uncertainty or are we going to go shopping?

2008-11-18T11:33:00.000-08:00

“NOBODY LIKES THE BRINGER OF BAD NEWS."
- Ancient Greek playwright Sophocles.

Last week was far from quiet as financial markets reacted to several pieces of bad economic news brought throughout the week.

The week began with the news that Circuit City filed for Chapter 11 Bankruptcy, and will be closing 150 stores - and this in advance of the holiday season, when most retailers make a larger portion of their profits for the year. Department store Nordstrom reported its growth rate is down 16%, where they were expecting an increase of 10%. Poor economic reports from Best Buy and Macy's followed a few days later, as well as lower future earnings guidance from Wal-Mart and Intel. As if the headlines of the week weren't enough, Friday's Retail Sales report showed that overall retail sales fell for the fourth straight month and plunged to their worst level since record keeping began in 1992. Looks like a pretty dismal holiday shopping season ahead...probably the worst that retailers will have seen in a long, long time.

In addition, there was bad news for the automobile industry as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0. As a result, General Motors stock fell below $3 for the first time since April 13, 1943. Interestingly enough, the automaker was not even making cars at that time but producing only military equipment for WWII.

And the bad news continued on the job front as well, as the Initial Jobless Claims report revealed the highest number of first time unemployment claim since 2001. In addition, Continuing Jobless Claims reached their highest level in 25 years. Remember, poor economic news and a weak labor market usually cause Bonds and home loan rates to improve. This is because fewer jobs and lower confidence about keeping or finding work causes people to spend less. In turn, businesses and retailers lose pricing power, and this is a cycle that keeps inflation - the arch enemy of Bonds and home loan rates - at low levels, especially if oil remains near present reasonable prices.

However, despite all the bad economic news of the week, Bonds and home loan rates were unable to make significant improvements this week

So what do we make of all this? Just look at the big adverts from a very famous local version of "The Donald" with big color adverts in the Sunday LA Times on multiple pages saying "I'm Buying" and looking to make a few big deals while he has cash and most do not.

Yes there is uncertainty. But there is certainly more to be made in the Income Property realm of investing than in today's stock market.

IMHO Keith Lambert
310-391-0821

The market just before election time...

2008-11-03T10:43:00.000-08:00

“TAKE TIME TO DELIBERATE; BUT WHEN THE TIME FOR ACTION ARRIVES… STOP THINKING AND GO IN.”
- Napoleon Bonaparte.

Taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%.

Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed's lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil…and gas prices, in turn…from skyrocketing again.

Another reason the Fed took action: The Fed’s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week’s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001.

So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .125-.25% worse than where they began.

Very few income properties are on the REO (Real Estate Owned by a bank) lists. Unless you go to areas like Henderson NV or Plamdale or Chula Vista where the rental of units has a very low revenue base. If the rents drop so that you can not make the mortgage... and/or the buyer is unsophisticated (or corrupt)giving a investment property back to the bank is very rare.

Amateur speculation in the single family home rental market is another matter.

Time will tell. Sound Investing in positive cash flowing income properties is what I recommend. Loan rates are good now. But for how much longer?

So to whoever wins the White House tomorrow, may God bless his political advisers with some great insight and clear vision.

Because of the down economy I am making a strong recommendation that you vote NO on any bond item on the ballot tomorrow. We do not have the excess state/county/city revenues to handle more debt now.

My 2 cents.

Keith L.
www.REList.net

Another Manic Monday for those in the financial markets

2008-10-28T09:54:00.000-07:00

"JUST ANOTHER MANIC MONDAY..." lyrics from The Bangles.
And last week wasn't just another manic Monday, as the markets were wild the entire week. During the past two months in the stock market, there have been 19 trading days with a 3% move. It had previously taken 6 years to see 19 days with a 3% move.
Bonds and home loan rates began the week with a strong rally on news that the world's largest Bond Fund, PIMCO, raised its stake in Mortgage-Backed Securities to its highest in over seven years. Also helping Bonds and home loan rates break above important technical levels were poor earning reports by companies like DuPont, Texas Instruments, Merck, Wachovia, and Boeing.
However, the gains were short lived as both Stocks and Bonds worsened on Friday after heavy selling took place in Asia and Europe. The waves of panic selling started in Japan due to weak earnings reported by Sony and Samsung, then spilled over into the UK as Britain's economy shrank for the first time since 1992, signaling a recession.
And while a strong sell-off in Stocks would typically cause money to flow into Bonds, helping Bonds and home loan rates improve, there is currently a bit of a departure from the normal "see-saw" trading you may typically see between Stocks and Bonds. This is occurring because securities must be liquidated to raise capital. In an effort to offset margin calls, all securities are being cashed in. Additionally, fear from individual investors, where people throw in the towel and want to get out of the market, is creating massive redemptions from fund managers. Despite the continued volatility and massive action of the last week, Bonds and home loan rates ended the week very close to where they began.

So what does this mean to you? Loans are available. You just need to qualify for them and have a real downpayment. Just as always in the income property and Apartment building market.

Banks are not foreclosing on apartment buildings. Apartment owners are enjoying a steady stream of cash flow and income from their investments.

Remember the old saw about not putting all your eggs in one basket. Hope your nest egg was not in the Wall Street basket.

Do you need a good dependable Real Estate investment?

Keith L.
www.REList.net

Rental Incomes... Still Strong

2008-10-06T12:39:00.000-07:00

If you are invested in the rental properties in vital markets you are not feeling the pain that wall street is feeling today.

Rents are Strong. Tenants still are making the rent. The rent roll is still paying the mortgage and insurance and taxes and the management upkeep.

The rental housing providers I know are sill receiving the positive cash flows that their investments were providing prior to the 2008 drop in the stock market.

No wall street type will tell you to take your money out of his control and give it to anyone else to help you diversify. They do not know any other investment. But you, who have some real cash to invest and a future to protect, need to take a portion of your wealth and invest in Real Property. Rental Property. Income Property.

Today's Cap rates and Gross Rent Multipliers are looking better and better.

Residential property can beat almost any recession investment.

How much! How much to Wall Street? How much to income producing land?

Risk is a chance to loose some value. But Whole companies go down to ZERO. Never does an apartment building go to Zero. Real insurance policies (as apposed to swaps/derivatives etc.) insure that your building will get built back up if hit with a typical disaster of fire etc.

Professional portfolio managers (CFP's) charge a few points to manage your money. And people like me as your Real Estate Agent charge a reasonable percentage to manage your tenants and pay the bills for the performing asset. I bet as a percentage of value a property manager is much less expensive than a money manager. I'll check on that.

What type of property would you like to own? A big building with partners? Medium or small building on your own?

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

Wall Street vs a local street

2008-09-24T13:53:00.000-07:00

I just notes that a blue chip stock fund that my sons college savings was in is down 17% since this year. And that is the Good stuff. Blue Chip Stocks. These are companies that own stuff and will not go to zero value when they have problems.

Very few who have income real estate have losses anywhere like that. Anyone with an income producing property is still paying the bills and making the tax and insurance and loan payments. The tenants still need homes etc.

When your stock broker says to diversify... Say "yes I will" and take some of your money and put it in a real asset. Buy an apartment building! Hire a reputable real estate professional to manage it and be safe and diversified.

You want less risk still? Buy some in an area that will not be hit by the same earthquake or hurricane or tornado!

This bail out to Wall Street that the politicians are asking us to buy into is way over the top for me to swallow. Loan backed investment pools should have been rated just like state bonds are rated. Anyone who buys a car will look under the hood. Wall Street sold a lot of these with no one checking. Are these secured loans? Are they performing? How many are seasoned? What percentage had 100% or 95% financing? Stated income and low FICO scores? The shortsighted bought the 'pig in a poke' when they did not look under the hood and bought the investment. Blinded by the higher return. Higher return = Higher risk.

Wall Street is all about risk vs return. The recent "Stock Bomb" wake up call still must reverberate in some of your mental time lines. Stocks based on the future value of the idea that the .com company will be able to leverage into a future business. Smoke and mirrors.

Real estate and housing run up as the latest "who wants to be a millionaire" frenzy got the stock market buy in... In a very big and stupid way.

The Federal Government should not buy out all the bad debt. Uncle Sam is not the Next Biggest Fool. Then that leads to the average taxpayer taking the hit for a stupid wall street suit/executive/snake oil salesman. The investors should possibly go after them in civil court for negligence or some form of malfeasance. But the judge may point out that they bought in and took the risk.

If you can not handle the risk then buy insurance or a safer vehicle to place your money.

There is risk you like and risk you do not like.

Some feel the risk of using a motorcycle is way to risky. And yet they put all their trust in a stock market man to keep them supported in retirement.

Some of you may have enough Capital left to buy an apartment building.

If so and you want a dependable rental income... Call me.

Keith Lambert
310-391-0821

The market is not a Train Wreck.

2008-09-16T11:23:00.000-07:00

"Treasury Secretary Henry “Hank” Paulson on Sunday: no more federal bailouts...
Finally, someone has hit the brakes where they need to be hit. The federal government and taxpayers such as you and I can’t go bankrolling or brokering the mistakes of Bear Stearns, Countrywide Financial, Fannie Mae and Freddie Mac."

Ok so as long as the lenders can make a real loan to a real client and the terms are not outrageous we are going to have support for the real estate values.

So relax a little. Do not think that you must have a heart attack. Take a bigger view of this correction.

Buy in if you plan on holding 3 or more years. If you are a flipper... Well then you had better be able to do it cheaper and better than the stuff on the market.

Mar Vista on the west side of the hill... Two good deals

2008-07-21T10:58:00.001-07:00

Mar Vista has a few deals. there are some good ones that are on the west side of the Mar Vista Hill. It is totally amaising that the ones on the other side of the hill with some city views are going for such hugue prices even in this down market. Even on high traffic streets like Palms. (near Grandview)

So on the SFR deal of the week... The one that I do not think will last long is 13129 Lake Street. At only 775,000 it is just above the lot value. the home has great bones and floor plan that is workable. A front two can garage and some elevation that may someday be a little view if a second story were to be added. Mostly a cosmetic improvement to the interior would be all it needs. Bring it out of the 70's. Easy cosmetic remodel process. Fix it then move in or move in and then Fix it? I like this Fixer. Call me and I'll show you why.

On the Speculator side... The nicest view lot at an OK price in the area is 13000 Warren Ave. On the slope. Not too near the airport but still you will hear the jets. (gotta be honest on that.) But the view is worth it. The back yard slopes down to a wide alley and gives you a great opportunity for redesign and building in a garage and entertaining back yard. The house has no real flow or style worth keeping. A land play and opportunity to build your dream home or to speculate that you can build and sell for a big proffit. Are you a Builder type? Are you deep pockets and want to invest?

Keith
310-391-0821

Mar Vista Community council election for our neighborhood.

2008-06-22T11:26:00.000-07:00

Hi All,

I am impressed, 119 votes from Zone 6. Way to go.

I was not even sure that that many could find Mar-Vista Elementary from our side of the hill. LOL (joke)

There are some friendships and many nice people I have met in the Mar Vista community thanks to my involvement here. I feel enriched by my experience.

It looks like I have two more meetings as a board member then I turn over my seat to Marilyn. I wish her luck and smooth sailing.

Sincerely Keith Lambert

MVCC Director for Zone 6
www.MarVista.org

Zone 6

Marilyn Marble 60
Valerie Davidson 35
Keith Lambert 12
Rachel Snowden 12

Total of 119 Zone 6 votes cast. Over twice that of the last election for Zone Director.

Santa Monica Apartment for Rent

2008-06-02T15:02:00.000-07:00

Nice Location and Good 1 Bedroom 1 Bath unit

North of Wilshire Blvd. near
Montana Ave. and 18th Street.

View photos of Apt D on 18th St. in Santa Monica

http://good-times.webshots.com/album/563670139EowhZK?vhost=good-times

Property owner is asking $ 1,750 per month and $2,200 SD.

And good credit score and verifiable income.

Keith Lambert
Property Management Line 310-391-0821

A mugger in town? Inflation!

2008-06-02T14:33:00.000-07:00

"INFLATION IS AS VIOLENT AS A MUGGER, AS FRIGHTENING AS AN ARMED ROBBER, AND AS DEADLY AS A HIT MAN." Ronald Reagan.

You may not describe the effects of inflation in those strong terms yourself. However the effects of inflation do affect your life, your home, your gas tank and your family wallet. And inflation is also the nemesis of Bonds and therefore home loan rates, because just like inflation erodes the value of the dollars you spend, inflation erodes the value of the fixed return a Bond provides. And last week, Bond pricing worsened on news of inflation, causing home loan rates to move higher by about .25% across the board and reaching the highest levels seen in weeks. According to one of my best loan sources Ed Varon at Pacifica Mortgage.

That will slow buyers down just a little more. And force the prices down a little more. Maybe make it a little more likely that there will be a change of the party in power come election day. Would that be the White House going from Republican to Democrat or in Congress going from Democrat to Republican? I will not make any wild bets on that horse race. LOL

But the loans and the Real Estate Market are not a laughing matter. Higher loan costs are not going to free up more funds for more absorption of the excess properties on the market. Auctions bring in those with a pocket full of cash looking for a steal.

So many properties in my zone have “In Escrow” and “Sold” signs in front of them that I know there are savvy Westside buyers out there scooping up the next renovation project or a quality property for a personal residence knowing that they are getting a deal that is “worth it in the Long Run” Yep. Priced right it still moves on the Westside of LA.

Please call me if you want my insights into what is a good deal on todays market.

Keith Lambert
310-391-0821

Props 98 is Great. Unless you are a city or mega developer.

2008-05-30T12:43:00.001-07:00

With the upcoming election I would like to recommend that everyone take a look at the article in CityWatch

http://www.citywatchla.com/content/view/1282/

I urge a Yes on 98 and a
very big No on 99.

remember using:
98 is Great
99 is Lying

Neighborhood Associations and Community/Neighborhood Councils

2008-05-27T15:25:00.000-07:00

I believe that Community starts at the most local level.

Caring about the neighbors;

taking care of a Cat or Dog while they are away.
helping out in some small way like rolling in the trash cans.

About all the folks on your street;

becoming a Block Captain.
going out front to look when a car or house alarm goes off.
participating in (or running) a Block Party

Blocks around your home;

joining in to better a local elementary school.
joining in a Neighborhood Association. (ie Ven-MarNA)

Helping your community at large;

participating in the local city government agencies...
local councils for Venice or Mar Vista.
helping in the homeless programs.

City wide;

CD 11 - Bill Rosendahl's office
and the upcoming city elections or re-election campaigns etc.

or with party politics on a County or State level.

PURPOSE OF NEIGHBORHOOD COUNCILS
by the CITY CHARTER voted into Law 1999 by the City Council:
"To promote more citizen participation in government and make government more responsive to local needs, a citywide system of neighborhood councils, and a Department of Neighborhood Empowerment is created. Neighborhood councils shall include representatives of the many diverse interests in communities and shall have an advisory role on issues of concern to the neighborhood."

I have filed for re-election as the Zone 6 Director of Mar Vista Community Council. I have diligently attended the board meetings and been a participant of many of the committee meetings of the board. This does not leave a lot of time left over to be a leader in the Ven-Mar NA organization but I will continue to be a big booster for the group. I have set up the web sites and started (their) message board. I have been the editor for the last two newsletters.

I urge all of you to participate as you can at all of the local levels you can. That is what makes a community like ours extra special and a rewarding part of living here in Mar Vista. Most of you are Stakeholders in Venice or Mar Vista. Please come out and vote when that election comes up.

Sincerely, Your Neighbor,

Keith Lambert
Zone 6 Director for MVCC

As posted on http://groups.yahoo.com/group/VenMar/

Hot Martgage information

2008-05-07T12:43:00.000-07:00

March Real Estate News Clip

2008-05-06T22:33:00.000-07:00

"The California housing market in March continued to deal with problems in the real estate finance arena, rising numbers of defaults and foreclosures, and concerns about the economy. Sales of detached existing homes fell 24.5 percent from 422,300 homes in March 2007 to 318,830 homes in March 2008. Sales bucked a 4-month trend of increasing monthly sales, falling 6.4 percent compared to the February sales figure of 340,580 homes. The median price also continued its decline against prior month and prior year figures. The March median was $413,980, down a record-setting 29.0 percent from the median of $582,930 a year earlier."

Some of this may be the lower end stuff selling to developer/flipper types. The well off and well maintained property may not be in the sales volume right now. The ones I see actually selling are the better priced homes. The "deals" that are priced right. That may be adding to the heady news above.

On today’s Tuesday caravan there were two items that stood out. One a 1 bedroom Condo for 280,000 and then in Santa Monica a nice owner user type house with units. Or the other item I reviewed (not on Caravan), 40 units with a big price reduction to a 5.4% Cap Rate and good old days GRM or 11.6.

Call me to ask for details if you are interested.

Keith L.
310-391-0821

Bonds and Intrest Rates - Market flexing in Buyers favor!

2008-04-21T10:33:00.000-07:00

There were changes in the news about Bonds and home loan rates last week - but not necessarily all in the "right direction". For most of the week, Bond prices moved lower, causing home loan rates to rise - home loan rates worsened by about .25% for the week overall.
One silver lining...some of the abuse that Bonds took was at the hands of somewhat positive economic news. Remember that positive or strong economic news tends to benefit Stocks, which in turn can pull money out of Bonds - which causes Bond prices to worsen and home loan rates to rise. So when news hit of a far better than forecast Retail Sales Report and much better than expected earnings reports from giants like Google, the financial markets responded by flowing money over into Stocks, and right out of Bonds, causing home loan rates to rise.
Also hurting Bonds was inflation chatter during speeches made by several Federal Reserve Presidents, who voiced concerns of inflation possibilities. Add record high oil prices and a seventeen-year high on food prices. Because inflation erodes the value of the fixed return provided by a Bond, the scent of inflation in the air always causes Bond prices to decline, and as a result, home loan rates will rise.
Even though the market is flexing, it is still a good time to take advantage of historically lower loan rates before rising inflation continues to push rates higher. Buyers now have much more negotiation power in the market. So now may be a good window of opportunity for you.
If you, or a friend, family member, neighbor or coworker needs advice on buying property before the next changes price you out of the market, please feel free to get in touch.

Keith
310-391-0821

TAX TIME IS HERE AGAIN... tips

2008-04-15T11:08:00.000-07:00

"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:

Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.

Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.

Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.

Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.

Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.

Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.

Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

- Check IRS.gov

Hot news re Jets at Santa Monica Airport

2008-03-26T14:10:00.000-07:00

SM CITY COUNCIL UNANIMOUSLY PASSES ORDINANCE BANNING LARGER, FASTER C&D AIRCRAFT

Following a study session that lasted almost four hours, and included public comments from a packed council chamber of Santa Monica and Los Angeles residents, including LA Councilman Bill Rosendahl, Santa Monica City Council unanimously passed the second reading of their ordinance that will take effect in 30 days, according to SM Mayor pro-tem Richard Bloom.

Follow link to learn more...

Concerned Residents Against Airport Pollution
Website: jetairpollution.com

News from Wall Street is Wild this past week

2008-03-24T10:39:00.001-07:00

The New York stock exchange has too high an opinion of it's self. Your stock broker will say to diversify. But he will mean to diversify in different stocks. That is not really diversification. You also need Real Estate. I believe that Income Producing Real Estate is still stronger than any equity paper on any stock exchange.

Just work out your Net Worth. Then look at the % in stocks & bonds. And the % in real estate. Next take your home equity out of the picture. How much of your wealth (equity) is in Income Producing property? If it is not a high enough % then let me know what you want to do about that.

The Hot News...

Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the last week. In the end fixed home loan rates ended up improved by about .25% for the week

The big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.

So income property loans may get better too.

IMHO Keith L.

ACTION in Santa Monica

2008-03-04T14:35:00.000-08:00

FYI If you are a property owner in Santa Monica you have a friend in this group.
For many years they have been at the forefront of the effort to protect property owners in Santa Monica from a overzealous city regulatory pogrom and heavy handed enforcement of the rules on the books.

To check their public web site go to
www.ACTION-WAM.com

They have regular meetings. I attended the one last night (Monday 3-3-08)
and listened to some very interesting speakers.

One reviewed for us the political efforts that are aligned to fix the problems of cities taking private property using eminent domain. He was from the Howard Jarvis Taxpayers Association and passed out some of their newsletters... "Taxing Times" The hot topic is the differences between two measures that will be on the ballot.
- Prop 98 - good
- Prop 99 - bad

If we want to truly protect property rights and owners from the cities and developers We need to vote Yes on Prop 98. If 99 passes it would keep the same low level of protections and even remove the extra protections of Prop 98 if it gets more votes.

Prop 99 was put on the ballot as a spoiler.

More information can be found on www.hjta.org
or on www.yesonpropertyrights.com

There are good things worth fighting for. Property rights is one.

I welcome your feedback.

Keith Lambert
www.REList.net

Tax time reprint - Do we understand our system?

2008-02-25T12:00:00.000-08:00

Our Tax System Explained: Bar Stool Economics
(I like a parable to explain bigger ideas So I will rerun this. I do not know for sure where it started or if it is still true. But it explains a lot. Keith)

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your daily beer by $20.' Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free.

But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

'I only got a dollar out of the $20,'declared the sixth man. He pointed to the tenth man,' but he got $10!'

'Yeah, that's right,” exclaimed the fifth man. 'I only saved a dollar, too. It's unfair that he got ten times more than I got'

'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got
only two? The wealthy get all the breaks!'

'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!'

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

( So can you see any analogy's to this? Post your thoughts... )

forclosures or market - prices are softer

2008-02-15T11:52:00.000-08:00

Had a recent conversation with an investor that likes that he can get small 3 and 4 unit properties on foreclosure actions. But he wants someone else to deal with the management. Prices are softer for regular listings and you can get a good deal there too.

Keep it in mind that you are in the home provider business from the moment you close escrow. If it is a foreclosure you have little to back up the security deposits and the tenants may be a big pain in the back side. What did they contract for? What deposit are they claiming?

In a regular sale there is an "Estoppel" to review the amounts and services that the tenants think is theirs. This is an important document. Both foreclosures or market properties will make you money. With soft prices on listed properties it is worth it to have an agent on your side. I can help save on headaches and make it a smoother business to run after the purchase.

Let a professional like me help you buy an investment property that does not have a snake den full of problems.

Sincerely Keith Lambert
310-391-0821
www.Lambertinc.com

Should we Rate Landlords?

2008-02-06T20:53:00.000-08:00

Those of us in the hosing provider business are still getting a bad shrift from the old "Landlord" label.

But what if there were a way for those of us good landlords to stand out and be differentiated from a bad landlord? Would that work?

In a free market the customer (tenant) would go to the good businessman (housing provider) and pay higher rents for better services. More satisfied customers mean more profits.

You recall Econ 101 right. Is our market ready for an educated tenant base?

Do we want our potential tenants to know about the building or the fellow tenants in your building? What if the problem is not an item the housing provider can regulate or protect against. Really hard to bite that one as a owner who just happens to have one tenant that has strong cooking smells or a screaming child. But if may be good for the potential tenant to be forewarned.

Therefore there is a good possibility that this new service will make it.

http://www.rottenneighbor.com

Tell me what you think of that idea!

Give it plenty of time to do the Overlay of the dots onto the map. Lots of Data and such. And it is in Beta mode too. I think it should be used to rate good things too.

So I tried to place a Dot (green) for Santa Monica Bar & Grille to say "Good Music Here" Can you find it?

Keith <"><

Builder or Flipper

2007-06-24T15:28:00.000-07:00

Are you the deep pockets builder type.

Or

Are you the strong but not keen on taking to big a risk type who buys and house to fix and Flip?

One of the two is always hanging around looking for a deal. What is hard is knowing what is a deal that will yield profit or not. Not an easy task if you are not working in your home turf.

Frequently the one who overpays for the development or flip property is from out of the area and gets burned. Like someone not familiar with Santa Monica and does not budget for the long approval and inspection times. Holding costs will eat away at all his profits and other Extras will make it a dear experience. Few can take that more than once.

If you need some expert local feedback on Mar Vista and west Los Angeles sites. Give me a call.

Keith Lambert
310-398-3272

or keith@relist.net

Market vs Marketing - Words do matter

2006-12-10T13:20:00.000-08:00

A Very Good story in the LA Times Real Estate section today. About the words selected to reach the public. Marketing the property with "Motivated Seller" etc. is a dead giveaway that the price is negotiable. The Words used do matter.

See "Maybe it's locution, locution, locution" on LATimes.com

Yup even though the studies for the story were from Texas and Canada the basics hold true. And more importantly they describe the underlying conditions of the property in its relation to the market in general.

If a listing says "gourmet kitchen" it will denote that the previous owner or the speck builder who just fixed it up did care about the nicer things in life. So the property deserves a premium over the other items in the market place. Not just the words getting the premium price, the property warranting it.

I could say a lot about that... For example. Was the market really down or was it just that most of the westside home sales of Quarter number 2 of 2006 were of the dilapidated sort. Then the owners fix themselves or they were professionals and Fixed to Flip. So what was it ... Down trend on the market of westside homes or was it a series of shabbier homes getting sold.

I think that for a bit those were the ones being sold at that time for some areas.

Those of us out pounding the pavement saw that to a large degree.

Those numbers affect the statistics but the price to square foot is not adjusted to quality or condition on statistical reviews. The MLS and DataQuick can not do that.

Therefore the average investor and homebuyer needs a really knowledgeable local representative to help him/her get the best info on the local area.

If you are looking in west Los Angeles,
I can help you. Keith Lambert
1-310-398-3272

Venice - Fix or Develop the entitlements

2006-10-08T11:55:00.000-07:00

OK how bold are you? Still Buying?

Then look at this Small Craftsman Fixer in Venice for 875k

Use as a SFR and hang out while you work your way through the planning dept and Coastal to get the site entitlements for a three or four unit development into nice fully set up property.

Right in the heart of trendy Venice California. Now that price may seem high for the other areas of the state but it is really low for the highly sought after Venice Beach community on the West Side of Los Angeles.

Sales on the same street and in the same APN number show more value. And the best return is when you change the property for the better. What better improvement than to change it from one home into 3 homes with great return potential.

What do you think of Venice? Hit Comments.

Do you want to know more? Send me a email or call.
via my web site at www.REList.net

Sincerely Keith Lambert
Helping you acquire Real Estate and wealth.

builders... R4 site in Venice CA

2006-10-02T18:37:00.000-07:00

Best item for you builder types... 13,000 sq ft of R4

In Los Angeles just out side the Coastal Commission reach and yet near to Venice Beach and Marina Del Rey. And it is on Two traffic corridors.

If you go Condo it is very valuable. If you build rental unts is is still profitable. If you use low income credits and programs you can make it a little sweeter still.

At $2,500,000 for the land is the start. Then build up to 4 or 5 stories high.

So... What is your building costs on this type of project?

Let me know your thoughts.

Keith L.
310-754-8116
keith@relist.net
email or call or post your comment for all to see.

Property in the Los Angeles area is still Strong value

2006-09-25T11:22:00.000-07:00

Just moving up a little slower. Great time to be a buyer. Panic is over. Pick the place you want to invest in and a market price can be negotiated.

Just for back up I want to offer this information from Veros Real Estate solutions. It has great info for mortgage and Real Estate businesses. So here it is again for you, my potential client.

Veros Forecasts Nation’s 10 Hottest and Coldest Markets JUNE 30, 2006
– Veros has released the results of its quarterly forecasting of the nation’s real estate markets, revealing the top 10 hottest and coldest markets for the next 12 months…. (edit) its automated home valuation analytics are highly accurate and dependable.

According to Veros, the ten markets in its coverage area that will see the greatest home price appreciation over the next 12 months, along with the expected appreciation rate will be: Seattle, 11%; San Bernadino County, Calif., 9%; Jacksonville, 9%; Raleigh/Durham, 8%; Tampa, 8%; Tucson, 7%; Riverside County, Calif., 7%; Oakland, 7%; Los Angeles, 7%; and Nashville, 7%.

The markets that show the least home price appreciation over the next 12 months are expected to be: Rochester, -4%; Worchester, -2%; Sacramento, -2%; Memphis, -1%; Dayton , -1%; Grand Rapids, 0%; Boston, 0%; Cleveland, 0%; Detroit, 0%; and Fall River, MA, 0%.

Veros Vice President of Technology Eric Fox presented the material at PMC 2006 in Dana Point, Calif. “We expect some home price appreciation on the hot market side, but nothing compared to what we’ve seen in the past. There are no 25%-plus markets in our projections. Appreciation is slowing way down.” Fox compared Veros’ predictions from April 2005 for the period Q205 through Q106 to actual home appreciation measured in the 10 hot and cold markets the company identified at that time. The projections made at the time proved to be very accurate. Using a typical measure used by statisticians to measure forecasting accuracy, R-squared, Veros scored 0.68 out of 1.0, indicating that nearly 70% of the variation in the results had been accurately predicted. Performing the same analysis on the results from the predictions made in April 2004 yielded an R-squared of 0.78. The prediction made in April 2003 yielded a 0.65.

So... Looks good for the local Los Angeles area. Appreciatiion of 7% per year means it is still a good time to buy.

Let me know what you think of that.
Keith Lambert
310-754-8116 or mailto:Keith@relist.net

News from my lending guy… & Happy 4th of July

2006-07-06T11:35:00.000-07:00

HAPPY BIRTHDAY TO THE USA…230 YEARS OLD AND LOOKING BETTER THAN EVER! Just think about the past few years - a market crash, recession, terrorist activity and war - yet the US economy still marches onward and upward. In fact, the Fed is watching the economy continue to cook forward, and seems to think it may be too hot. So they did it again, hiking rates for the 17th consecutive time within two years, bringing the Fed Funds Rate to 5.25%. Since the .25% hike was so widely expected, it wasn't much of a market mover on its own - but what was important was the wording of the Policy Statement, saying that "economic growth is moderating...and inflation expectations remain contained...yet the Committee judges that some inflation risks remain."

Translation of the Fed Speak is that inflation remains relatively tame, which was good news for Bonds and therefore home loan rates, improving slightly for the first time in a month. …

Last week also brought news on the Housing Sector, with both New and Existing homes showing better than anticipated sales. The inventory supply for new home sales improved to 5.5 months, down from the 5.8 months reported previously, while existing home inventories rose slightly to 6.5 month supply. Another interesting note from the report…the current median sales price of an existing home in the US rose $230,000, up 6% year-over-year.

End clip from the email he sends out.

Rates may taper a little … Message: If you are going to buy do it now or pay more.

Call me to help short out the best one to buy. Mar Vista/Palms Residential or Condo.

Keith Lambert – 310-754-8116

Boardwalk Realty, Marina Del Rey

BWR - Realty services

2006-06-13T16:42:00.000-07:00

FYI

Boardwalk's Relocation (RELO) Division is in full swing!

If you need an agent in any part of the USA we can find a qualified full service professional in that area to take care of your needs.

Just let me know what you are looking for & in what town.

Keith <"><
310-754-8116

Does the interest rate matter to you?

2006-06-04T23:29:00.000-07:00

If you are affected by the difference of a point or so on the cost of money then you need to turn on the radar to look out a little further over the horizon... 7% is not far off.

What type of investment property works for you?

Rents are still strong and will likely stay that way for a good long time. Commercial leasing is not a declining market yet. So again they are still strong options as well.

The higher home prices have made many rents seem less of a problem. The fed sees the strong raising rent termed as inflationary. But the real close in affect is that the good apartment building buyer can be assured a steady rental return. Low Risk. I like Low Risk.

If you are not into management of your own property... Let me know I can refer a good property management company.

I'm a boater and so I like the analogy of using Radar to look out on the horizon to see what may be coming your way. Would you agree that 7 % money rates are coming in the not to distant future?

Keith L. Answer via the comments

Builder option in CC with 3 lots for just under 15000sqft

2006-05-25T16:47:00.000-07:00

3 lots side by side - Developer/Developer opportunity in Culver City

THREE DUPLEXES IN A ROW. NO RENT CONTROL! SOME UNITS HAVE BEEN TOTALLY REMODELED. EACH UNIT HAS PRIVATE YARD AND PRIVATE GARAGE. ALLEY ACCESS. CAN BE SOLD ALONG WITH 10815 & 10819 JEFFERSON BLVD. OR CAN BE SOLD INDIVIDUALLY. TOTAL LOT SIZE IS APPROX. 15,000 SQ. FT. CAN BUILD TEN 1800-2000 SQ FT. CONDOS (PER OWNER).

Land Bank for Builder!

So you do not want to build right away... No problem. Sit on these for a little while and land bank them. The revenues from the duplex rentals make it very pain free as you take your time to see what you can get approved with the city. Be patient while you see if the market will be strong after the current correction or market shift.

Investors

This Culver City area is a good investor option. Owner will sell them separately if you want to buy one or two of the three. Review with Keith the benefits that you receive as the owner of a clean rental property where the long term benefits are strong.

Will require a strong down payment on listing price of $ 839,000 each.

This is one of three good featured listings for investors added to the REList.net web site today.

Big Development opportunities

2006-05-17T09:33:00.000-07:00

There are three duplexes side by side that could be a good option for future development. What a chance to build a nice Condo or Apartment complex.

If the three lots are broken up then the opportunity is lost.

Side by side these three lots make up just shy of 15,ooo sq feet of lot.

Call or email me soon if you know a builder or developer who would like the details.

Keith @ relist.net or 310-758-8116

More options and one back to market

2006-05-16T23:34:00.000-07:00

Ashwood is back. The top offer of a couple of weeks ago fell out! Buildable into new SFR !

I will track this one on this blog even if one of my clients do not get it. It is in Mar Vista area just east of Walgrove Ave and West of Beethovan. The best lot deal in the area. It is back on the Marketat new price of $679,000. They raised the price by 20k after it fell out. Last time there were a bunch of offers. They took the “all cash” offer and did not counter the other offers. Will all those suitors come back?

Today I showed it to a friend that had expressed interest in a site he could improve. He was properly impressed and will likely be working on his numbers while I am typing this tonight.

Another quick fix and flip is also in the area. Bigger lot. Newer house. Just need to peal away the old stuff and freshen it up. Any one out there want to make a short play on a $850,000 house that may be able to go for more once improved? Got to take down a lot of country stuff.

Give it a bit of sprucing up. Revamp the Landscape and polish the hardwood. Update the kitchen. It does not have the view that drove a lot recently over 1 million. But it has the bones of a fairly decent house. Can you make friends with the floor plan and make it speak to the heart of a new buyer? Possibly profitable for you if you can!

This weeks hot items. Builders for Large items needed.

2006-05-11T22:48:00.000-07:00

Several lots for a total of 15,000 sq ft near Culver City

or

3 lots of the sand in Venice Beach for $6.9 million
used for parking now but what would you build ?

OK Post your comment... What would you like to build?

Builder and Development deals available today.

2006-05-09T17:00:00.000-07:00

Recently a home on Dewey ( just south of Santa Monica Airport ) was listed by a notorious local agent at a low price. Of course the ensuing overbidding had some serious developer/speck bidder action. It sold for $1.1 mil. And now this view lot will get a new home on it. Will they tear down 100% and rebuild. Some think so. The selling price on those homes in the region with Year Built that says 2003 or newer can command prices like $1,895,000 with views and just $1,565,000 with no views.

Another Hot one just hit the market place and has all the builders scrambling to grab their calculator. On Inglewood at the top of the Mar Vista Hill. Think of and Mountain View locations and top prices. It was listed at a sobering price of ONLY 839k and the bidding war will likely push this up to the 1 million dollar range.

Also is there any of you dear readers thawoulddl combine three lots and build a nice Condo development on a total of 15,000 sq feet of land?!?! New. Not on the MLS.

Bigger. Better. An opportunity for construction of profitablele project.

REO for 11 x gross

2006-05-04T15:52:00.000-07:00

Came across an interesting Residential Income property that was only 11 x Gross.

It had been sold but fell out of escrow and is now reduced by an additional $100k. So what went wrong with it? Likely the units that were bootlegged into the building. It happens from time to time that a unit is broken up into two units. It raises the bottom line for the buildings monthly income.

Is the City Building and safety onto the owner? Is the owner trying to sell before the city forces the corrections?

I have found that smaller units make good revenues.

IMHO. Keith

Caravan Day and few gems

2006-04-18T22:28:00.000-07:00

Many remodels of the basic fix and polish were on the market. Beautifully staged and full of nice bath fixtures as well as interesting and warm colors.

Did some looking at the ones in the area near the 1 fwy and Bundy then worked my way into West Los Angeles. Some of the nicely fixed up properties where priced in the high 800’s and looked rather nice.

But there was a 999 priced house on the hill that held onto my imagination. If you spent real money to fix that one up it could be another $1.5 million home. Great views. It is just so hard to pay 990k and think of it as a lot. Even for Mar Vista.

That one the listing agent will possibly be driving for a price reduction soon enough. Then I’ll be back for it with my builder friends in tow.

Last Tuesday on Caravan found a good Investment for a builder

2006-04-18T11:23:00.000-07:00

Doing the regular RE Agent/Broker caravan is the very important path to really getting the feel of what is available. It is what keeps us RE Professionals hot on the trends and closest to the inventory that is constantly changing.

I roamed from Santa Monica to West LA to Westside Village to Palms and then to the Mar Vista and northern edge of Venice this day. Found that the items I had selected included a few that were very well priced for the benefits and livability.

But one stood out… A builders investment hot property. Just listed. Priced Right. Good buildable lot. Small house of little more than 600 sqft ! That will nock over with a small little bobcat and one dumpster. On Ashwood in Mar Vista. A Great deal at $659,000. Very hot.

Build a nice house of 1800 to 2000 sqft and sell it for a tidy profit. The older homes are going for $899k in that area. A new one will easily be $1.150 to $1.25m In north Venice one APN away there are some rebuilds going for that and then some.

Lot: $ 659,000

Build $ 370,000 – ($185per sqft x 2000)

Plus holding costs and permits etc. (30 to 40K)

Cost $1,150,000 sell for a 100k to 200k profit.

Not bad for one years work. I quickly called all the builders I know. They were all on vacation to the Colorado River or at Catalina Island with boats and family. Dooh.

By Weds the listing agent had 7 offers by 5 pm. Good deals do not last once the word is really out. Just one Day!

I will track this as it closes and it is rebuilt to let you good readers know what/how/where a good market and quick actions can reward an investor. Teaming up with a Real Estate professional who is “In the Know” is the best way to score on this type of opportunity.

Los Angeles has so much to offer.

2006-04-10T17:18:00.000-07:00

Those many great things are there for the tenants and homeowners who share the city.

The westside of Los Angeles had several building booms over the years. So there are plenty of rental properties to serve the population that wishes to rent.

These are very good investment type assets. Safe. Secure. Revenue flows that can be counted on. Reasonable amount of security with limited amount of risk. If one appreciates the types of risks associated with a rental property... One can sleep soundly and confidently assured the values and revenue streams will increase over time.

Now that the old banking deregulation and the tide of funds has shifted from banks to the stock market to the Real Estate market... A run up has occurred. That in no way delutes the real value. It just gives the chicken littles a chance run saying "the bubble will pop" "the bubble will pop."

The Dot Com bubble did pop. But the difference is a flow of income and a real asset. Land. So there is back up to the land and real estate value. Not the same.