creiZ (pronounced crazy or craze, whatever you prefer) is about Real Estate, my endeavors in real estate, and anything else that comes to mind regarding real estate and other interesting deals. It stands for Commercial Real Estate Investment Zest or Common Real Estate Investment Zanyness or Creating Real Experiences in Zigzags(whichever you prefer). Thanks for visiting and you can access the site directly by going to creiZ.com.
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May 02, 2008
Short Sales Resource Guide & IRS Debt Cancellation Q&A
For homeowners or other sellers (of commercial real estate, for example), short sales may be a way out of bad financial situation that could get worse (through foreclosure, for example). For investors and other buyers, short sales could be an good opportunity to buy a decent property at a very good price.
Do you have any other specific questions about short sales?
Short sale definition: a short sale is when a homeowner sells a house for less than what they owe on the house with their lender(s)'s permission.
F.r.e.e Commercial Real Estate Magazine subscriptions
Real Estate Media 2008 Media Guide - Real Estate Forum, Real Estate New York, Real Estate New Jersey, Real Estate Southern California, RealEstateFlorida
I subscribe to all of the magazines except for RealEstateFlorida (though I have nothing against it :) and enjoy them all.
One recommendation, if you are trying to reduce your carbon footprint (like CBRE), I recommend getting the digital edition versus the print edition. And if you do get the print edition, please recycle.
Statcounter is great since I am able to see (sometimes) what companies are visiting my Opportunistic Investment site. Unfortunately, I'd like one level deeper. I want to know who visited my site so I can call them to see if they have any questions I can answer. How can I do that?
BTW, they look like a pretty interesting company. Among other things, they own the NY and they also have several real estate funds through Sterling American Property including the latest one where they raised $600 million. Maybe they were looking to spend some of their funds through some of the real estate opportunities. Man!
What could I have done to capture their attention and actually attract interest so that they could have contacted me?
Opportunistic Deal of the Week - What a deal? - 7 cents on the dollar - Bear Stearns Crisis Averted With Acquisition
JPMorgan is buying Bear Stearns for the price that non-performing 2nd liens (notes) and HELOC portfolios are trading for. Incredible! And the fed is helping make it happen. Sweet deal!
JPMorgan is acquiring Bear Stearns at a huge discount of $2 per share. On Friday the stock closed at $30 per share.
What Christmas Wreaths and Distressed or Discounted Real Estate or REOs have in common
On my way back from Safeway this morning after buying about a week's worth of milk (in other words 6 gallons, hey I've got 4 kids and it's just past noon and half a gallon is gone already... but anyway), on my way back home I passed by Michaels and saw a bunch of Christmas wreaths selling for 90 cents each. These are normally about $5 to $10 wreaths at the peak of the Christmas season. If someone or even maybe a Christmas store (you know those that only open for a couple of months at the end of the year) bought these and held them till the end of the year, they could probably make a killing. They could probably have an ROI in the few hundreds.
Rather than stopping and buying 100 wreaths (since I know my wife would not be too happy seeing 100 wreaths in the garage), I got to thinking how much the wreaths were like discounted real estate/REO properties (or in general any discounted asset that is out of season). The subprime mess (among other things) in the United States has caused a glut of residential real estate to fall out of season.
As with wreaths, residential real estate will be back in season eventually. The time frame may not be the same since wreaths will most likely be back in season in the latter part of year and residential real estate may or may not recover some, but it will recover. It always does. It is, to use Warren Buffett's words, a "high-probability event" that residential real estate will be back to where it was 1.5 to 2 years ago. It may just take 1, 2, 3 or more (or less) years to get there.
So imagine the returns those that buy now at 40 to 70 cents on the dollar will see once the residential real estate market is back up again. It may not be in the hundreds as with wreaths, but in the 30s to 50s shouldn't be too bad.
Could this be of interest? If not, I can definitely find you some wreaths that available for pennies on the dollar. You can open up your own Christmas store and you'd make a killing!
I just saw this on Inman news (PAID SUBSCRIPTION required) by Bernice Ross and thought this was interested for any agents out there. Here's the list (comments in italics):
Get rich in a niche - in other words specialize in a particular area, type of product, etc.
Don't rely exclusively on referral strategies - Bernice says that on average on 25% of business comes from referrals. So the rest must come from somewhere...
Respond immediately to consumer inquiries - This is probably one of the key ones here. Think of time when you call a contractor or repair company. How likely are you to choose the ones the call you the first day versus the ones that call you the third or fourth day. (Speaking of which I need to start making some calls... :)
Customize your personal Web site; don't rely on your broker's site - It's nice to be on your broker's site, but you normally don't have full control over your area. You have to jump through hoops, call the IT department, give up your firstborn, etc. just to get your picture updated. Set up your own and if you don't know lick about website management, contact one of those that can do it for you and customize the text. This takes some work to maintain and keep up to date, but it is normally worth or better yet create a blog (see below).
Earn a NAR designation - I have different opinions on this. I think that a designation such as GRI, CRS or even CCIM could be a good differentiator all else being equal, but designations can't tell you (as a consumer) how the person really is/their personality. But if you have some cash and time, it can only help. I don't think it would hurt.
Blogging - Need I even comment on this? The benefits of blogging are that you can have your website, "speak" with your own voice and it is easy to set up and it's free. What more can you ask for?
Podcasting - I'm adding videocasting/YooTubing to this too. Like blogging, you can speak (literally) with your own voice and it's free. But this takes a little more time (unless you're just posting to YouTube/Google Video) and effort, but the key thing is that they get to see and hear the real you presented as you like anywhere in the world. What more can you ask for?
Have any other ideas that could help in 2008? Please share!
BTW, British Land was (don't know if they still are) in the top global 25 REIT according to NAREIT, so I would imagine that 3% is a pretty good chunk of change (maybe not for a multi-billion dollar sovereign fund, but for me it is).
On a side note, anyone interested in helping me contact the top 25 REITs to see if they are looking to do opportunistic plays. (We can split the finder's fee! :)
AD: Corea Properties Real Estate Properties Portfolio Video for debt and equity financing sources
The purpose of this video is to introduce Corea Properties' strategy for acquiring commercial and residential real estate properties portfolios in the United States (initially in the Washington DC Metropolitan area) and to obtain debt and equity financing for the portfolio acquisitions. (Call +1-240-441-5086 if interested or have direct sources of debt and equity financing that may be interested.)
Using this site for marketing has helped Smith broaden his audience and appeal to younger customers who now use Web-based programs on a daily basis, he explains. “Now I have calls and e-mails from all over the country requesting educational, consulting, and brokerage services,” Smith says.
Can't beat that! As you may have seen, I've used real estate videos before, but not to the extent that Scott. Looks like it is time to start shooting more videos...
So what do you think, will YouTube take over commercial real estate marketing?
CMBS - What are they? I bet Lucy the 6-year-old knows!
Who's Lucy and who taught her about CMBS, you ask? Lucy is the fictional 6-year-old Jordan Crouch created in his CMBS for 6-year-olds post. I think you could even use the explanation for 30-year-old folks! Comments Welcome!
I am buying $10 million worth of bank-owned properties that need little to no work in Maryland (Anne Arundel, Prince Georges, Montgomery & Howard counties and Baltimore City and County) for cheap and I am wholesaling them. Wholesale prices starting at $165,000+ with retail prices of $250,000+. I will have properties in 21076, 21228, 21045, 21144, 21113, 21075, 21061, 21060, 21228, 21229 and many others. You can find more details about this great Maryland real estate deal here: http://esenai.com/real_estate_deals/66_cents_deal.pdf
Email or call me, if interested, or if you have a particular that you are interested in and if you'd like a copy of the Letter of Interest.
Thought you might be interested in this website which I came across the other day. Let me know if you are able to go and find any good deals. I can take some off your hands after the sale... :)
What would I do if I had a spare 200K for real estate and why?
The short answer is: I'd buy a $1 million apartment complex that needs work (not too hard to find) or a small shopping center that needs work (a little more difficult to find for that price).
Some questions you may have:
Q: Why don't you buy a single family rental for cash?
A: Simple, cash is king and the more I can leverage it, the better. Why tie up 200K in one house? I wouldn't be fully utilizing one of the benefits of real estate: leverage. A key ratio that I use here is cash-on-cash return. Below is a classic (oversimplified) example that I'm sure many have seen in real estate books. (I know I have. :)
Property Type
Cash Needed
Purchase Price
Leverage
Gross Rental Income per Month
Gross Rental Income per Year
Cash-on-Cash Return after Year 1
Single Family House
$200,000
$200,000
0%
$2000
$24,000
12% (not bad)
20-Unit Apartment Building
$200,000
$1,000,000
80%
20*$500 = $10,000
$120,000
60% (wholly ratio, Batman!)
So which one looks better on paper (well, actually on the web)? Naturally, the 20-Unit Apartment Building scenario does. Of course, there are many other things that you need to consider because now you are getting into the semi-pro league, so you have to be more diligent in everything or hire someone that can help (psst, I can help :). In the apartment building game, lenders will not be as worried about your personal credit score as much as they are worried about whether the property will be profitable. It will be a factor, especially in the smaller apartment complexes, but they want to ensure you have your share of equity (i.e. cash) in the property and that its profitable. There's a lot more to investing in apartment buildings, but this is a quick summary.
Something else that you may have caught is that I would look for an apartment building or shopping center that needs work. Why? For the same reason that you would buy an ugly property, to get a bargain deal and then add significant value. One caution on this though is that there are fewer lenders that will lend on this type of property, but they're still out there. Another option for financing commercial properties that need work is to joint venture with larger investment companies. (They're out there. I've seen them.)
Q: Why don't you buy an ugly single family house to rehab and resell for cash?
A: So the single family house is not a rental and I am actually remodeling and reselling the property quickly (withing 6 months, but ideally within 3), then I may consider paying cash for it to get an excellent deal. Even so, I think I'd still lean towards longer-term income since taxes are not as high (think short-term vs long-term capital gains tax) and you have more control over the property because when doing a remodel and resell, you are at the mercy of the market especially if it's a buyer's market.
Q: Why not just invest in stocks?
A: I like stocks. They're fun to watch when prices are going your way. The problem is when they go in the opposite direction! Another issue that I have is that I really don't have any control over the stock, whereas with real estate, I do.
Q: Why not invest in a startup?
A: Now, you got me. Depending on the situation, I would rather invest in a startup, than in real estate. Personally, I haven't done it on my own. I have invested with an angel group before. Why not on my own? Because just like in real estate, there's a lot of due diligence that needs to be done to ensure that that the startup is a viable investment. Even after diligence though, nothing's ever 100% sure. One potential disadvantage is that you may not see a return (if any) for a while (think years, not months). But just imagine, owning a little piece of the next Google...
Before I digress to much further into startup land...let me say this, every individual's situation is unique. So even though what I wrote above may sound logical (or not), in your specific situation, it may not be.
***Warning-Sales Pitch***
So consult, your tax and legal professional and when they tell you that what I mention above makes sense :), call or email me and we can create your unique investment experience.
REDUCED - Now 269k! - Shameless Self-Promotion: "You Arrive" - A short story about 5306 Wendley Rd, Baltimore, MD 21229 - Your Next Dream Home!
UPDATE: BIG PRICE REDUCTION - Was $299K - NOW $269,900! - Don't have an agent, let's work directly and save even more. Owner financing possible!
NOTE: For a detailed description, please continue reading. If you'd rather see pictures, please click here or videos.
You Arrive
A short story by Marvin Corea
You have been looking for a new home for while now. Constantly disappointed because the homes are in disrepair and don't have the amenities you desire. You come across a new house at 5306 Wendley Rd in the Westgate neighborhood of Baltimore (not too far from Catonsville). So you decide to take a look... You arrive at beauty as you walk up sidewalk to your next home on the tree-laden street. Enjoy the shade of the mature trees and the fresh air and autumn breeze. Upon arriving in front of your home, you observe the new landscaping with colorful red mulch and new everlasting evergreens. You look up and see the majestic house with four prominent original columns in the front porch, two beautiful stained-glass windows, new vinyl windows and tan vinyl siding. While you walk up the stairs to your front porch, to the left and right, you notice newly planted flowers and more red mulch. As you step onto the front porch, you imagine yourself sitting in a comfortable chair, drinking a hot chocolate on a cool autumn morning. Ah, how warming! You can't wait to get inside...
You walk through the front door of your your future home with high ceilings and fresh natural paint. Enter the hardwood foyer where you smell the fresh scent of home. Straight ahead is the kitchen. To the left, the hardwood stairs to go upstairs and to the right, the hardwood living room. You walk into the living room and see the large windows with views to the front porch. Into the hardwood dining room you go where the new chandelier accents the room perfectly and surprise...
The kitchen is open! You have a clear view of the beautiful kitchen. Great! How enjoyable it will be to spend time with family and friends in this area! Before you make your way to the kitchen, you notice a door near the rear of the dining room. You open it and are pleased to find a full bathroom with new ceramic tile and a new pedestal sink. Nice! Eagerly, you go the the kitchen area and the first thing that catches your eye are the very smooth granite countertop and the tall cinnamon cabinets. Wow! The kitchen also has large travertine tile that perfectly match everything. You see a cooktop directly in front of the breakfast bar. That's great! You can prepare your meal while enjoying time with your family and friends. The hanging lights over the cooktop accent the area well and light up the immediate cooking area. You look to the left of the cooktop and see the wall oven. (No more bending over!) Next to the oven is the new refrigerator. Then the door to the backyard. You look out of the window and see good size back yard with mature trees which you know will provide cool shade on those hot summer days. You notice that there's a door near the kitchen door to the foyer and see that it leads to the basement and laundry area. It is a full size basement and you are glad for it because you know you the extra storage will come in handy. Having the side entrance for easy access to the basement also helps.
You make your way up to the second floor where the three bedrooms are. You notice the soft new carpet throughout with one exception, the bathroom. You enter the bathroom and your jaw drops. The first thing you see when you open the door are the large travertine tiles on the floor, but more significantly, the marble shower with glass doors right in front of you! Can you believe it You open the shower's sliding glass door to touch the marble tile and you feel its smooth elegance. You can imagine yourself spending time here! You step out of the shower and see the new hardwood vanity and sconces and turn around to see the stylish almond toilet. What a bathroom! "I can definitely live with this," you say to yourself. You immediately know that you have finally arrived home.
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Enjoyed the story?
Then you will surely fall in love with the house!
Come visit the open house and make your offer this Sunday, 1PM - 2PM. (Yes, that's only 1 hour, but don't worry, we won't kick you out if you are in the house before 2PM. :)
Can't make the open house? We can't guarantee that it will still be available, but you can call your agent or Marvin Corea (owner/agent) at 240-441-5086 to schedule an appointment.
You can also view pictures (soon) of your next dream house at http://www.MyNextDreamHouse.com
View more pictures of 5306 Wendley photos and a new home slide show on PhotoBucket!
Street View of 5306 Wendley. (Your next home sits about 20 feet above street level.)
Contemporary, open kitchen and dining room
Marble shower with original stained glass window
Master bedroom with red mahagony-stained hardwood floor and original stained-glass window
Foyer with original refinished hardwood floor
Completely redone kitchen with granite counter top, travertine floor, 42 inch cinnamon wall cabinets, wall oven, cooktop and breakfast bar
Kitchen and breakfast bar view from formal dining room
About the Neighborhood (source: Live Baltimore Home Center) The Westgate Community is uniquely situated in Baltimore City and Baltimore County. The city portion begins in West Baltimore, one block west of Ten Hills. City street names include Westgate, North Rock Glen, Wendley, Brabant, Mardrew, Stamford, Kingston, and Mallow Hill. The county portion is part of Catonsville.
About the Westgate Community Association (source: Westgate Community Association) Our community association was incorporated in September 1931. Two general meetings are held each year, in May and October. The association board of directors meets monthly, with the exception of July and August.
The community association board works closely with both City and County officials in community revitalization and crime prevention efforts as well as encouraging appropriate development in Westgate and adjacent communities. Board members act as liaisons with the Southwest Development Committee and advisory boards for the MTA and State Highway Administration.
A community newsletter is distributed door-to-door at least quarterly to keep all residents abreast of the activities of the association and community news. Annual dues help support newsletter printing, upkeep of Westgate Park at North Bend, Neighborhood Watch/Citizens on Patrol (NW/COP) and a host of community activities.
The community association sponsors annual events such as the Easter egg hunt, Santa's visit, lawn and garden club functions and community picnic, as well as twice-yearly park cleanups and yard sales.
Community Garden Club The purpose of the Westgate Garden Club is to educate members and our neighbors about horticulture, emphasizing low-maintenance and environmentally-responsible gardening practices. We also maintain all the Westgate common areas.
Monthly meetings are held September through May, except January and February, at members' homes. Members and guest speakers have presented information on pond building. landscape architecture, forgotten pollinators, herbal lore, soil science, lasagna gardening, bulbs, houseplants and more. Contact Garden Club President, Janet Gross, 410-719-6637, or email, jangross@bcpl.net and check the website events link for upcoming schedules.
The Club sponsors a plant swap and wreath-making. These are free of charge and open to the community. They are held on Sunday afternoons and include refreshments. Westgate Beautification We help to clean and maintain Westgate Park at North Bend and have landscaped the sign-beds there and on Edmondson Avenue. We also maintain the Route 40 plantings, supplementing the state crews, and have created a woodland garden in the northeast corner of Westgate Park at North Bend.
The plants for the woodland garden and most of those at the sign-beds have been provided through a free program sponsored by Civic Works in Baltimore City. Civic Works operates a perennial nursery, obtaining castoffs from commercial nurseries which are then provided free of charge for community gardens. The sign-beds were both financed through grants from Parks and People Foundation of Baltimore. Garden club members supplement the plantings with both donated material from our own gardens and the purchase of perennials. For more information on upcoming meeting topics and special events, contact Janet Gross at 410 719-6637 or jangross@bcpl.net.
Houston Business Journal: Houston added to list of cities with Street Views
from the Houston Business Journal: Google "late Monday added street-level views of Houston, Orlando, Fla., Los Angeles and San Diego to its worldwide mapping project."
Google says the pictures are useful. People shopping for real estate can look at homes and neighborhoods, for example, the company says."
Houston is one of nine U.S. metropolitan areas and the only Texas city with Street Views so far."
comment: It would be interesting to see how much more real estate will be sold purely online in these areas. Real estate investors (companies and individuals) have been doing it for a while now, but consumers are just starting to get into it. My guess is that there will definitely be an increase in purely online real estate sales especially since most contracts have an inspection contingency. Now if we could only have closings online, that would be great!
CoStar Group to Provide CCIM Members with Access to Researched and Verified Commercial Property Listings Across U.S.
Just saw this in an IAMC email from CNNMoney... As if the education itself weren't enough, "CCIM Members will Benefit from Access to CoStar's Industry-Leading Information, Including For Sale Listings Nationwide and Local For Lease Listings Within Their Markets." Comments Welcome!
64 Comal St - east Austin rehab - now under contract
We went into escrow last week and assuming all goes well, will close by the end of August. I'm sure the buyers will be able to do great things with this property. (fortunately and unfortunately, it has been a learning experience for me.) more to come... (I expect my next post about this property will be at the end of August and titled something like SOLD!) Comments Welcome!
just bought another house for remodeling purposes - 5306 Wendley Rd, Baltimore, MD 21229
UPDATE: Take a look at the new and improved 5306 Wendley house. Please tell us what you think.
We went to closing at 3pm at Cross Country Settlements (not recommended) of Hanover, MD. (This is another Baltimore remodeling job.) I must say that this is one of the faster closings I've ever been to. We were finished signing our last papers around 3:35pm! More to follow...
BTW, let me know if you have any leads on the Alameda property. I am working with agents and offering a FREE plasma TV at closing.
I just came across a site to search Austin New Homes that some of you might be interested in especially if you are looking for new homes in Austin, Texas area. It allows you to search the floors plans of six Austin area builders, Gavurnik Builders, DR Horton, Centex, Kimball Hill Homes, Capital Pacific Homes and Armadillo Homes. You can search by model type, number of bedrooms and total square footage. DR Horton, for exa
