Hedging your Retirement IncomeOne of the Suresh ways to create wealth over time has been the stability in our rental income property.Recently, my spouse found out that she would soon be retiring after 35 years.  Her company, like many others in the private sector, has eliminated retirement pensions by providing 401k plans that the employee contribute to their own pension, taking part of the risk for the ups and downs of the stock market, and so forth.  Recently, she complained to me that she lost $45,000. in a matter of a few days on the roller coaster market.   I take it in stride, because it's her retirement income that she watches every day.  I, on the other hand, look at my long term investments, such as a 4 unit apartment building I bought almost 3 years ago.  I bought at the high ... 12/18/2007

  "The Real Estate Market Magazine", I think it deserves some food for thought.  Don't give up on Print Magazines, you need to read this!!!Most agents have not been in the business long enough to see trends in advertising, yet alone market trends, sellers market, buyers market, changing or correcting challenging markets.Needless, to say, I have seen the days when we had the Multiple Listing Service (MLS) on books  instead of what we had when Moses was a child.  The Internet and was been a great source of information at you finger tips, no question about it.Why do I think the Print media is here to stay along with the Internet.  It's a good combination, most people are not on the web 24/7.  They occassionally go to restaurants, coffee shops, shopping stores and malls, convienance stores,... 12/15/2007

TheDon1950@aol.comSenate Votes to Help Strapped HomeownersFor the last 18 months, California has been had press to raise the Conforming loan limits for FannieMae & FreddieMac, as well as FHA.Biggest part of the problems with the subprime debackle has beenin part a combination of several things that led to many of the problems in the financial markets;1.  Raising the federal funds rate 17 months consecutively by .25% without a counter measure to to soften the blow in the real estate and mortgage market.  The Feds, have this wait and see attitude, which in this case, could have moved sooner.2.  Holding the Conforming loan limits to $417,000, without considering high cost states, such as California, whoose median price home is approx. $568,000.  ..... What this did, was essentially killed ... 12/14/2007

Why Real Estate Magazines are vital to your business, It gives you Exposure, when people buy homes, they themselves, think they think it's logical, this is their way of escaping in making a decision to buy.....Without pressure, that's why they look on the internet because of information. However,  what they really want is some one to guide them & romance them, so that they can feel good about their decision to buy.  They will sell themselves, but first they got to get to know you, your name, your face, on a constant basis.  It Takes money, to make money.  Look at all of the top advertisers, Coke a Cola, Budwiser, Kleenix, Pepsi, Marlboros (if you smoke), do you think they stopped in print media, on the contrary, they know it's Exposure, Exposure, Exposure...   Just like Location, Locati... 12/11/2007

This was a Response to a Blog, that was too good to be true.  You got to read this, if you want to increase your business!!!  I franky am amazed at how many people think print advertising is a waist.  I am probably going to catch a lot of slack on this, but I have been around almost 30 years, how long do you think you'll be in business?  While the last few years, from about 2001 to 2005 the market was really hot, most of the real estate agents that came in to the business in the last ten years could put out a sign on the front lawn, and the property sold rather quickly.  You may have put it on the Web, and you thought you were in heaven, you convinced yourselves that the internet was the only way to go, that was a technical point, only because the internet provided information, and dema... 12/07/2007

California is the 3rd highest cost state in the nation.  Survival depends greatly on raising the Conforming Loan Limits. The Federal Reserve should lower the Fed. Funds Rate, however, there is another part of the equation, that many people are not aware of outside of certain circles, Why are so many lenders in trouble?  The sub prime problem may have added a small minute portion to help fuel the fire, but in reality, the federal reserve deserves a good share of the credit of killing the confidence of the American Public.  The Federal Reserve is the direct link to the credit crunch, it has in it's power, and the will to increase the money supply and controls inflation, the Discount Rate and the Federal Funds Rate.  In 2004, the Federal Reserve started their quest to slow down the real es... 12/05/2007

Attention Real Estate Industry and Consumers,and the Financial MarketsMy name is Carlos R. Arvizu Sr.  Hysteria is plaqued by opportunist in the media.  I received a letter from NAR, that I would pass along to anyone who wants to know more about the real problems with respect to the credit crunch.  With most mortgages made to homebuyers, there is generally a 3 to 5% foreclosure rate, examine your history.   "The bigggest part of the credit crunch is that many lenders are having liquidty problems, due the conforming loan limits.  This restricts many of these same lenders who are having pproblems with foreclosures from selling their loans on the secondary market to FannieMae and FreddieMac."  I received from NAR, I would like to add this Comment.  I wrote a Letter to the National Associat... 11/26/2007

Attention Real Estate Industry and Consumers,My name is Carlos R. Arvizu Sr.I wrote a Letter to the National Association of Realtors (NAR) on Novemeber 23, 2007, which I wrote as an open letter as a blog regarding Headlines that paint a Distorion of facts, reported by a local newspaper (Long Beach Press Telegram), that "Home Prices Fall Further", which was totally taken out of context by this news organization at the National Conference held by NAR, in Las Vegas.  NAR economist spoke, telling the attendees that Real Estate Sales will have a modest recovery in 2008.  I also Picteted this News Organization out of Frustration.  I encourage all local realtor boards to respond accordingly.  Here is NAR response to my letter, I encourage you to use it to show that,    "Real Estate is Local". ... 11/26/2007

It's a very difficult to understand all of the pieces that keep the economic system in perfect harmony, with the price of crude oil is cruising the $100-per-barrel mark, the real estate market taking a beating in some areas, the financial market is riddled with bullets caused by the subprime turmoil, Another piece of the puzzle is having it's own share of problems, the dollar has been hammered lately, and continues to stumble lower to other currencies. The result has been a sharp decline in the stock market, causing it to give back almost all of 2007's gains.The Federal Reserve is concerned with Inflation, but in reality, it's deflation, that should be of concerned.Deflation is generally considered to be "falling prices". But there is much more to it than that. Often people confuse defl... 11/25/2007

Buyers Buy, when buyers Buy.  At this moment in time, most buyers are confused with the buying at this time, mostly of misinformation, and media hype.....  All of them want to wait, for a perceived bottomming of the real estate market, so they can get a good deal.                  Question is When?Being in this business, since Moses was a child, I can earnestly say, that most buyers don't have a clue when to buy.  They think they know, but most don't.  Most millionairs have real estate holdings, why?  Because for the most part, there is certainty that it will go up over time.  I own stock, however, since the 1st of November, we've (my wife's 401K) have lost $45,000 just on uncertanties, thats about 10% of her retirement....  My Real Estate investments have far exceeded the $7 million do... 11/23/2007

November 24, 2007 Friday   2:45 pm   Dear Walter,   My name is Carlos R. Arvizu Sr.  I am a Realtor with Prudential California Realty in Pico Rivera, California.  I am fully frustrated what the news media is doing to the homeowners of our nation, especially in my area.     On November 14th, 2007, the Long Beach Press Telegram, a local newspaper that is circulated in the southeast Los Angeles County for the communities surrounding the Long Beach area, is a prime example of what I am writing about.   They took out of context, what Mr... Yum had said during the NAR National Conference in Las Vegas.     Their Headlines read " HOME PRICES FALL FURTHER" in reading into the story, it reported that according to the National Association of Realtors, Economist Yum, had said that a modest recovery... 11/23/2007

November 20, 2007FreddieMac Board of DIrectorsTo whom it may concern,My purpose in writing, is to give my input with regards to the credit crunch.  I believe that both FredieMac and FannieMae, need to put pressure on the powers that can change the conforming loan limits.  What the Federal Reserve need's to do, is a quicker response, instead of playing this wait and see attitude, as far as lowering the Fed Funds Rate. While the U.S. economy faces a higher risk of recession from credit markets, housing and energy prices, and the falling dollar againt other currencies, most likely outcome, the fed funds can expect further cuts, despite what Federal Reserve Chairman Ben Bernanke said, in a recent congressional appearance.  He said economic growth would "slow noticeably" in the final quarter... 11/20/2007

While the U.S. economy faces a higher risk of recession from credit markets, housing and energy prices, and the falling dollar againt other currencies, most likely outcome, the fed funds can expect further cuts, despite what Federal Reserve Chairman Ben Bernanke , in a recent congressional appearance said.  He said economic growth would "slow noticeably" in the final quarter of this year and was seen as "remaining sluggish" during the first part of 2008. Housing weakness, higher energy prices, and the ailing dollar will weaken consumer spending with credit-market tightening, are seen as the most likely recession triggers," the report said. Consumers will cut back sharply, sending the economy into a big hole, which is a very dangerious position to be adding to bigger  problems for the ec... 11/19/2007

When are we as a nation, our political leaders, from the President, Congressmen and Senators, as well as the Federal Reserve, going to stop with the blame game and take bold action to solve the problems that we are facing as a nation in this global world.Why does it take a rocket scientist to figure why we shouldn't be doing something?  The newsmedia, bounces off any angle it can, to grab headlines long enough to capture readership in the quest to sell their advertisers advertising.  (Which by the way, is part of the problem, that is Negative Headlines that perpetuate notarity, spurs long term negativness, which is counter productive.Let's look at the problem that perpetuated the so called credit crunch mess that is not only affecting the real estate market, but many other areas.  To fi... 11/19/2007

On November 14, 2007, The Long Beach Press Telegram reported on the NAR Convention, and literally took out the context of Nar's economist Yon speech.  What was said, that the nation could expect a modest recovery in 2008, (which is around the corner), But the Headlines read in very large Print, "Home Prices Fall Farther"  to paint a picture, the the sky is falling, but in the body of the article, had indicated a modest recovery.I reality, the Headlines should have said  ....   " Modest Recovery in Housing Prices seen for 2008"   but because negative ads sell newspapers, and media attention, they opted to push the negative.Yesterday, November 16, 2008, from 1:30 pm Friday afternoon, I did exactly what I recomended to my fellow Activerain Bloggers......... Boycott the Press.  I actually m... 11/17/2007

Out of frustration, comes desparation.  We need to ban together and Boycott all our negative newspapers, magazines, radio, T.V., and internet outlets, that promote negative news reflecting our Local Real Estate Market.I don't know about other real estate markets in other areas, outside mine, I do know that reality is, yes, we have had some problematic loans that some people should have not gotten into, however having said that, typically, throughout history, we have had on average a normal 3% to 5% delinquency rate, checking with the major banks, would confirm that.If you were to really understand the true picture of the housing market, we have 70% home ownership in this country.  California, had approx. 477,000 properties sold last year in 2006, approx 334,000 of the buyers, were equit... 11/15/2007

Throughout the years I attended many various seminars, listened to audio cassettes, bought a lot of books, and materials,  I have always walked away with two or three pieces of information that gave me a better grasp on my business.  Some of the information was basic, some complicated but what it really boils down to is this: What you get out of this Business, is what you put into this Business.  I am no rocket scientist, although, I do have a degree in the business.  I hold a Phd degree from the University of Hard Knocks.  I think I made a few mistakes along the way to say this.  I do believe that most people coming into this business think they can do better than anyone else, that's why they're always trying to reinvent the wheel, so to speak.  I think that is what drives most people ... 11/13/2007

I am sorry to hear that the real estate market is hitting you hard, it's hitting us hard too!  You just didn't understand the message of my E Mail.    I too, are having difficulty with buyers not wanting to buy, because they are afraid to buy, based on the negative news they see and hear. I am forced to make adjustments by consolidating my two offices as well, but the truth of the matter, it's the HYPE can sometimes be misleading, much like a heard of nervous stampeding cattle, destroying everything in it's path, because of fear.  I just said, before you make up your mind that the world is coming to an end, find out yourself.   Here is what I am presently doing to fight the adversity.  I did find some interesting statistics about my real estate market area, the research I did, spelt out... 11/11/2007

Consumers are somewhat befuddled about the Real Estate Market, that most get side track by the news media's attempt to grab or sensationalize the news long enough for the recipient to fragmentize the full facts.  For those real estate professional that are reading this Blog, do yourselves a favor, contact your title company, and ask for these statistics in your area.  To separate fact from hype make a concerted effort to know the facts in your marketing area.  I took 21 Cities in my area where I live in Downey, California.   There are approx. 2 million people who live in those 21 cities.  Our Average median home price was as of August, 2007, approx. $588,000 in the state, for our area market, approx. $564,000.I compared what is hapening this year, starting from January 2007 to October 1... 11/10/2007

Foreclosures in our local market place and the Misconception of the Media  What constitutes a Foreclosure.  There are a couple of components and a three step process that a homeowner goes through to get to a point where they actually lose their home to foreclosure. Generally if a home owner is late on his or her payment, the lender gets a little concerned.  Initially most lenders will call the homeowner, or write them a letter, telling them they are late and to make the payment, and that they will be jeopardizing their credit, or worst lose their home. If that does not get their attention, the lender will officially start the foreclosure process.  The three elements to the process are; 1.       The 1st phase is the Notice of Default (NOD) period, which is a 90 day event (3 months) to ca... 11/07/2007