Tuesday, July 05, 2011

Federal Trade Commission Goes After Real Estate Gurus

The Federal Trade Commission & the Colorado Attorney General went after the late-night guru Russ Dalbey AND one of his testimonials.  Yea!!!  And Armando Montelongo is under investigation too.  "His infomercial boasts that he is "America's No. 1 and top real estate investing expert."  Yeah, right...

... The Federal Trade Commission went after one prominent infomercial king and joined forces with Colorado Attorney General John Suthers to take the uncommon step of going after a woman who offered a testimonial.

Russell Dalbey, CEO and founder of the company behind the "wealth-building" program "Winning in the Cash Flow Business" is charged by the FTC with defrauding consumers with what were described as "phony claims that they could make large amounts of money quickly."...

Armando Montelongo parlayed exposure as former host of the A&E network's "Flip This House" into a national slate of free seminars promoting the tactics needed to buy and fix up run-down property for profit. His infomercial boasts that he is "America's No. 1 and top real estate investing expert."

The news team also uncovered that one of the star pupils in the infomercial faced eviction and multiple foreclosures in Nevada. Another claimed to have made $110,000 in eight months, despite the reality of having declared bankruptcy and not having earned more than $17,000 a year.

Read the whole article:

As I say, "Hold onto your wallet & credit cards!"

Tuesday, June 14, 2011

Southland Home Sales, Median Price Post Steeper Declines From 2010

Southland Home Sales, Median Price Post Steeper Declines From 2010

June 13, 2011
La Jolla, CA---Southern California home sales held at a three-year low last month amid a sluggish move-up market and record-low sales of newly built homes. The median sale price fell year-over-year by the largest amount in 20 months as buyer uncertainty, tight credit and lackluster hiring continued to restrain housing demand, a real estate information service reported.

A total of 18,394 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in May. That was up insignificantly – 0.3 percent – from 18,344 in April, and down 17.4 percent from 22,270 in May 2010, according to San Diego-based DataQuick. May marked the 11th consecutive month in which sales fell year-over-year.

On average, sales between April and May have increased 5.7 percent since 1988, when DataQuick's statistics begin. May sales have varied from a low of 16,917 in 2008 to a high of 35,557 in 2005. Last month’s sales count was 29.0 percent below the May average of 25,902. May sales were lower than last month in just three of the past 23 years: 2008, 1995 and 1993.

The 1,152 newly built homes that sold across the Southland last month marked the lowest new-home total for the month of May since at least 1988.

“A year ago we were talking about sales reaching a four-year high as buyers rushed to take advantage of expiring federal homebuyer tax credits. Now sales are stuck at a three-year low. The government stimulus is long gone and some of the fundamental drivers of housing demand have yet to strengthen enough to lift sales to even average levels. Some of the key culprits are weak job growth, tight credit and a hesitancy among potential buyers and sellers, who question whether this is the best time to make their move,” said John Walsh, DataQuick president.

“So here we sit in the market doldrums,” he continued. “Two of the more likely sources of fresh wind in the market’s sails would be a pickup in hiring or further home price reductions.”


for the rest of this good article from Dataquick:
Southland Home Sales

Monday, May 09, 2011

if you’re ever distressed

Our family recently suffered a loss and today I was feeling somewhat pensive and not particularly upbeat.  I sat down to eat my lunch and turned on the TV to avoid contemplating recent events.  I found pure serendipity in viewing the very end of the movie “Jack” starring Robin Williams.  “Jack” is about a boy that suffers from a condition that ages his body four times faster than normal.

The character Jack says, as the valedictorian at his high school graduation with a body that’s almost seventy years old, “Please don’t worry so much, because in the end , none of us have very long on this earth.  Life is fleeting.  And if you’re ever distressed, cast your eyes up into the summer sky when the stars are strung across the velvety night.  And when a shooting star streaks through the blackness turning night into day, make a wish... and think of me.  Make your life SPECTACULAR!!!”

Or think of anyone else you’ve lost and realize that they would give anything to trade places with you right now.  So live, love and be happy with what you have right now and make your life SPECTACULAR!

Monday, April 11, 2011

28% of San Diego home sales in Jan. were cash

I suspect that most of the cash buyers are investors.

DataQuick: Slow winter season, lower-than-ever prices were likely factors

By Lily Leung

Almost three out of 10 homebuyers in San Diego County in January closed with cash, the highest it's been in 21 years, according to La Jolla-based DataQuick Information Systems.

Company spokesman Andrew LePage said 28 percent of new and resale homes bought in the county last month had no records of mortgages, matching the percentage of cash purchases one year ago during the same time.

The figures from this year and January 2010 are second to only the peak at May 1989, when 29.1 percent of home purchases were made with cash.

LePage said the historic high is likely due to lower-than-normal home prices and investors capitalizing on less competition during the holiday season, when most buyers are scrambling for presents, not homes. DataQuick numbers, which go back to 1988, show the monthly average of cash buyers is 12.6 percent in San Diego County.

for more:

28% of San Diego home sales in Jan. were cash

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

Other DataQuick highlights, California

--In January, 51.9 percent of those paying cash were absentee buyers. That means the property-tax bills will be sent to different addresses, potentially signaling the deals were made by investors.

--About 52 percent of the homes bought with cash in January had been foreclosed on in the previous 18 months.

--The median price for a home bought with cash last month was $160,000, down from $175,000 in December and $164,000 one year earlier. The median home price for all homes sold throughout California last month was $239,000.

Housing data may have understated extent of collapse

I posted this to remind you not to trust all the news put out by the National Association of Realtors.  And to realize that you must take into account the group releasing the information and to consider that they may have their own agenda "taint" its accuracy.

From Real Estate on msnbc.com:

A housing trade association is examining the possibility that the data it releases underestimated the collapse of the housing industry, the Wall Street Journal reported on Monday.

The National Association of Realtors, which issues the monthly existing home sales report that is closely watched by economists and financial markets, may have over-counted home sales dating as far back as 2007, the newspaper said in an article posted to its web site.

NAR's home sales count was at odds with calculations by CoreLogic, a California real estate analysis firm, according to the report. CoreLogic says NAR could have overstated home sales by as much as 20 percent.
An over-count of home sales may mean that there is a bigger backlog of unsold homes and that it will take longer for the U.S. housing sector to climb out of the deep hole it is already in, dragging on the broader economic recovery.

The crash of U.S. housing markets, in part because of shoddy lending practices, was at the heart of the economic meltdown that started in the United States and spread around the world.
  The U.S. recovery has been held back by the slow healing of housing markets, with high foreclosure rates hold down home values and sales.

NAR said the data could be revised downward this summer, the newspaper said.

Tuesday, March 01, 2011

28% of San Diego home sales in Jan. were cash

What do these numbers mean?  They mean that the government needs to get their heads out of their anal cerebral inversion!  Almost 52% of January's sales were to investors!  We need to be recognized as a viable means for getting the vast number of REO back onto the market in a quick and efficient manner!

28% of San Diego home sales in Jan. were cash

DataQuick: Slow winter season, lower-than-ever prices were likely factors

Tuesday, March 1, 2011 at 6 a.m.

Almost three out of 10 homebuyers in San Diego County in January closed with cash, the highest it's been in 21 years, according to La Jolla-based DataQuick Information Systems.

Company spokesman Andrew LePage said 28 percent of new and resale homes bought in the county last month had no records of mortgages, matching the percentage of cash purchases one year ago during the same time.

The figures from this year and January 2010 are second to only the peak at May 1989, when 29.1 percent of home purchases were made with cash.

Homes sold to cash buyers

AreaJan. '10Jan. '11Peak since '8810-yr. avg.
Los Angeles26%25%26%11%
Orange24%27%27%11%
Riverside36%36%37%17%
San Bernardino36%39%39%16%
San Diego28%28%29%13%
Ventura23%21%43%11%
Southern Calif.30%30%30%13%
Source: DataQuick Information Systems

Other DataQuick highlights, California

--In January, 51.9 percent of those paying cash were absentee buyers. That means the property-tax bills will be sent to different addresses, potentially signaling the deals were made by investors.

--About 52 percent of the homes bought with cash in January had been foreclosed on in the previous 18 months.

--The median price for a home bought with cash last month was $160,000, down from $175,000 in December and $164,000 one year earlier. The median home price for all homes sold throughout California last month was $239,000.


LePage said the historic high is likely due to lower-than-normal home prices and investors capitalizing on less competition during the holiday season, when most buyers are scrambling for presents, not homes. DataQuick numbers, which go back to 1988, show the monthly average of cash buyers is 12.6 percent in San Diego County.

The same upward trend was reflected statewide. In January, 30.9 percent of new and resale homes sold in California were bought with cash, the peak in at least 23 years, LePage said. During the same time in 2010, that number for the state was 29.5 percent.


To see the rest; go to the San Diego Union-Tribune article:
28% of San Diego home sales in Jan. were cash

Friday, January 07, 2011

I Survived Real Estate 2010 videos

The new year is a good time to reflect on what happened last year in 2010. Here are the videos from the " I Survived Real Estate 2010" where real estate industry professionals shared with us their views on what was happening and what will happen in real estate. The Norris Group does such an excellent job (Aaron Norris) of putting it together and we hope to see you at this year's event.

I Survived Real Estate 2010

Tuesday, December 21, 2010

Funny Commentary of Quantitative Easing (that is printing money) from Jon Stewart:

This is too funny... if it wasn't sooo true!

Jon Stewart's Big Bank Theory