Another Manic Monday for those in the financial markets

"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

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

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.

"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

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.

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

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!

"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.

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

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

March Real Estate News Clip

"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!

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

"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

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

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

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?

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

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?

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 <"><