Posted by:
Trenton Flock @ 9:04 AM
Earlier this week, I reviewed
the new beta version of Hoodeo and lamented that it wasn’t more pedestrian-friendly. More people are beginning to consider the price of gas when choosing the location of a new home and Hoodeo didn’t do much to find walkable communities for interested users. In pointing this out, I would be remiss to not mention a site that has a leg up in this regard:
Walk Score.
Walk Score gives areas and addresses a score on a scale of zero to 100 based on distance to retail, entertainment, restaurants and cafés. This is good news for people looking to trade their house and car keys for a condo and a pair of Mephistos and who want to find a neighborhood that will give them a reason to step out of the house without
worrying about gas prices.
Walk Score’s system is limited, however, because it cannot account for tough hills, lack of infrastructure (safe sidewalks and crosswalks) and other obstacles which may make even a short distance a major obstacle. Most suburban areas will rank well below 50 points, which is considered unacceptable. This lack of walkability is precisely why suburbs may soon be less in demand in coming years (See our article
Stepford No more: The Death of Suburbia). For now, Walk Score is only appropriate for people living close to downtowns or communities with a pedestrian-friendly town center.
Walk Score just released a list of the most walkable neighborhoods in my own area, Seattle, with an overall score of 72. To compare, the man at 1600 Pennsylvania Avenue enjoys a score of 86 (assuming he can count that high). Meanwhile, the home of the King of Rock (Graceland, that is) scores a measly 32. That’s still much better than the King of Pop can do:
Neverland Ranch scores a perfect 0. Maybe that’s why Jacko abdicated to
Dubai, which will probably have self-cleaning conveyor-belt sidewalks before the boom there is over.
Wandering back on track—Walk Score is limited, but the developers know this, so with time it may provide a much more accurate and useful tool. Though a little too arbitrary for use on its own, it could help some homeowners narrow the field, and used in conjunction with sites such as Hoodeo, it may have users running, not walking, to the best place of all: Home Sweet-New Home.
Labels: homebuying, Hoodeo, real estate, Walk Score
Posted by:
Eric Ames @ 8:10 AM
I’ve always thought it would be interesting to have a game about real estate investing, but the few I’ve seen have been lackluster at best. Typically these games over-simplify things and in the end don’t really teach players anything about real estate investing. I finally came across a real estate investing game that is actually decent: The game is called Real Estate Empire. It is not perfect by any stretch of the imagination, but it is entertaining and someone who is new to real estate investment may even be able to learn a thing or two.
Some things the game has which set it apart from the others are that it takes into account things such as the economy, market cycles, credit, savings and professional skills. In the game, players can select from one of five different professions including real estate agent, contractor, interior designer, handyman and MBA. Each has a skill set that can help in the game as well as an accompanying savings and salary. To win the game you have to make more money than the competition--namely, the 4 remaining professionals.
As the game progresses you can buy, fix up and re-sell homes. While one of the downsides to this game is that it basically focuses on the fix and flip strategy of real estate investing, I think it does a pretty good job covering it. Players have to make sure they negotiate a good deal when they buy and decide which repairs to make and which ones will ultimately provide the highest return for them. When they sell the home they have to decide if they want to use an agent (to sell it faster and potentially for more money, but with higher costs), or go it alone. The game even takes into account peak selling seasons, so selling in winter is harder than selling in the spring or summer.
Another cool feature the game has is that it teaches credit and savings. In order to buy a home you first have to have a down payment, and you have to build your credit up along the way as well. At the end of each month, players have to decide which bills to pay and whether to use savings or credit to pay them. As the player pays their bills off, their credit gets better and their credit lines increase and subsequent mortgage rates available to them become better--just like in real life. This part of the game is pretty cool and this is the only game I’ve ever seen that incorporates this piece, which of course is vital to investors.
Rather than explain the entire game, though, I’ll provide you with a link to the place where you can download a trial version and play it for yourself. The trial version is just like the regular game, only a trial game will end after 60 minutes of play time. That is plenty of time to decide whether or not you like it, though, so I recommend checking it out if you like this sort of thing. Happy playing…
http://www.logler.com/real-estate-empireLabels: real estate
Posted by:
Eric Ames @ 8:43 AM
With a new mapping tool released by Hotpads.com, called the rent ratio heat map, users can now quickly and easily determine whether it makes more sense to rent or to buy in a certain area. The tool evaluates each area based on the rent ratio—or ratio of rental pricing to for-sale pricing—and assigns the appropriate heat map color.
While the tool is not perfect, it is a very cool idea that I’m sure will evolve with time. A couple of problems I noted were the comparison properties and the buying costs used to calculate the ratio. In their comparison, they use the number of bedrooms to determine the costs. The problem with this, of course, is that the apartments and other multi-family rentals examined are very different from the homes to which they are being compared. In areas like Manhattan, where single family homes are virtually non-existent, this comparison model makes sense. However, in suburban areas that have a high concentration of single-family homes, things are going to get a little off. Most people in the suburbs would prefer to live in a home rather than an apartment for various reasons. As a result the prices for rental homes tend to be considerably higher than apartments.
Another problem is with the cost they assign to the buy side of the equation. They simply take the cost of the home, but neglect to consider any additional expenses involved in home ownership. This of course includes property taxes, utilities (typically higher than in apartments), maintenance and so on. These costs vary greatly based on which state, and even city, you are in. For example, property taxes in Texas are more than double those in Washington.
This tool is a great idea, and as it evolves and becomes more accurate it will become an incredible resource for people to consult. It is most definitely worth checking out, and you can even use it as a starting block when evaluating neighborhoods, but don’t let it take the place of additional due diligence. This tool is not meant to be the final word on whether a person should actually choose to rent or buy; it is simply meant to be a starting point for them.
Labels: real estate, real estate bus
Posted by:
Eric Ames @ 3:39 PM
Zillow recently made headlines with their new mortgage marketplace, but Google is quietly testing a mortgage marketplace of their own in the U.K. Whether or not that means that Google will bring the marketplace to the U.S. is unclear, but in all likelihood if things go well in the U.K., we can probably expect to see it hear too.
After seeing the success that Zillow has had with their tool--over 28,000 loan requests in the first two months, according to Zillow-- I can’t see why Google wouldn’t also be successful. Google’s viewer base is more than 50 times larger than Zillow’s and they have a lot more money to throw into designing a great tool for users.
What does a Google Mortgage Marketplace mean? Well, it likely means even more competition among lenders, which means lower rates for borrowers. The main questions will probably revolve around service. Sure it’s great if someone quotes me a loan, that’s lower than another lender, but how can I know that they are going to actually close it? Is this lender someone who is going to pull the old promise the world trick only to hand over something completely different at the closing table?
These are questions that Google is going to have to answer if they hope to have success with their new tool. What I would love to see is the ability for users to rate lenders (it doesn't appear that Google's UK mortgage marketplace has this ability). Much like they have with their shopping site. That way users could compare not only quotes, but also past service records, which offers a much better solution for borrowers. Zillow offers a rating system as part of their mortgage marketplace, and if Google wants to take this thing to the next level they would be wise to add one too, maybe even with some additional features to what Zillow offers. In the end, Google’s name and size alone should allow them to control this marketplace, and I foresee them doing just that.
Labels: Google Base, real estate, real estate bus, Zillow
Posted by:
Trista Winnie @ 1:57 PM
Estately.com, a real estate search website that uses referrals to connect consumers, real estate professionals and brokerage companies, is expanding outside Washington state by "adding 35,000+ Portland homes to our existing database of nearly 50,000 Western Washington homes," according to a recent blog post on Estately.com announcing the news.
"The site incorporates interactive mapping and displays details about the proximity of schools, parks, transit stops and restaurants to selected properties. Consumers can subscribe to get updates on price changes for properties and can save property notes," according to Inman News.
Estately.com users can search properties in specific neighborhoods and choose from agents in Estately's referral network by viewing competing bids anonymously. "The company has an agent-ranking algorithm that narrows the list of agents for a given area, and Estately staff research these agents and conduct interviews with some agents in developing its referral network," according to Inman News.
"We hope we make it easier for you, Portland, to search for a home in the hip neighborhoods--Hawthorne, Woodstock, Lloyd, Belmont, The Pearl District, and Sellwood--and the less hip ones. We also hope we make it easier to decide if a house is actually right for you," according to a blog post on Estately.com.
For more information on Portland real estate, see our previous article, Steady Growth in Portland Real Estate.
Labels: real estate, real estate bus
Posted by:
Eric Ames @ 1:35 PM
I just discovered a new Facebook application which could help change the way people buy property. The name of the application is Facebook Neighborhoods and the basic gist of it is that users are able to meet and interact with their neighbors. The tool is pretty far-reaching; it covers many countries and neighborhoods already and is growing rapidly. I believe the tool is originally intended for neighbors to communicate with one another and stay updated, but I think it could also be used as a great tool for potential homebuyers and investors alike.
Once you are in the Facebook Neighborhood tool you are able to browse through neighborhoods, see what is going on in the particular neighborhoods and also see the names of other people living in the neighborhood. Typically, unless you are friends with these people, you won’t be able to view their full profiles--in case you were wondering what type of people are in the neighborhood--but you can send them messages.
For real estate investors, talking to neighbors can be one of the more beneficial due diligence tasks they can undertake. Neighbors are going to know whether there is a drug house in the area, or a neighborhood thief or numerous other helpful things. They might even know things about the particular house in question. Many times I’ve found that the neighbors know about damage the house has suffered (which homeowners are supposed to disclose, but sometimes things magically slip their minds), or specifics about the sellers such as why they are selling and so on, which can be helpful in negotiation. You might be surprised at what types of things can come up when you talk to neighbors.
Obviously not all the neighbors are going to be part of the Facebook Neighborhood, so prospective homebuyers are probably still better off at least attempting to knock on the neighbor's door (especially for the property-specific information), but for those who are too shy for face to face confrontation--or maybe just don’t have the time--this could be another way to conduct due diligence.
I would use this tool to accomplish a wider neighborhood survey of sorts. I would craft a message that asks a few questions about the neighborhood, send it out and then see what type of responses I get. I wouldn’t ask anything specific about the house, but would start the message by saying I’m thinking about buying a certain property in the neighborhood and just wanted to get a little more info about the area. By throwing out the address--even though I don’t ask directly for property information--if they have some juicy information they just might share it. Mainly I’m looking for information regarding the neighborhood. What do they think of the schools? How is the homeowners association (depending on how wide the neighborhood is; there may be different HOAs)? Any problems with crime? How do they like living there? Things like that. People like to share this type of information, and it will be useful whether you plan on living in the home or renting it out. This initial communication could also serve as a spring board for further relationships with the neighbors so that you can ask them for help in the future for things such as checking on how your tenant is maintaining the property (helpful for out of area investors) and so on.
Questions are your friend when conducting property due diligence and this tool just provides homebuyers an easy way to connect with people who might have the answers they are looking for.
Labels: real estate, technology
Posted by:
Eric Ames @ 2:59 PM
PolicyMap is a new online service that was created by The Reinvestment Fund, a non-profit organization that funds neighborhood redevelopment. I read about PolicyMap on Future of Real Estate Marketing blog and thought it sounded like an interesting service. When I went to check it out, I was astonished by the amount of information and customization they offered.
Real estate investors or developers who need to do extensive demographic research should definitely check this site out. They offer more than 4,000 different demographic variables for which you can customize maps and reports. They cover the standard ones such as crime, income and so on, but they also have powerful ones you can’t find anywhere else, such as an estimation of a neighborhood's population in the year 2012 and many others I just don’t have space to mention.
All of this information does not come cheap, however.
They offer limited data and customization for free upon registration, but for the real goodies you have to be prepared to ante up. Their standard subscription starts at $200 a month, and they don’t even publish their premium subscription price. If you are a developer or real estate investor who does a significant amount of deals, though, I think their service is well worth the price. This is especially true if you have to put together presentations for money partners or others as part of your investments. PolicyMap offers data that would make your presentation much better, in addition to tools that should make gathering the data and putting into presentable format much easier.
Labels: investments, investors, real estate, real estate bus, real estate development
Posted by:
Eric Ames @ 11:40 AM
The National Association of REALTORS (NAR) launched a new commercial real estate listing service called Commercial Source yesterday. The new site can be found at www.commercialsource.com and should offer the commercial real estate leader LoopNet.com a run for their money. With the strong backing of NAR, Commercial Source already has a leg up on the competition.
Browsing the site I found it to be laid out well, with an attractive design. As an investor, though, one problem I came across was with the property searches. It doesn’t appear that they have any sort of advanced search, and their available options are a bit limited. If I’m trying to narrow down my search to a specific type of property, I'm going to have a more difficult time on this site than LoopNet, for example.
As this is a new site, though, I’m sure changes such as this will come with time. For a first release, I think NAR did a good job on this site and I will definitely be keeping my eye on Commercial Source. Other than LoopNet, I really haven’t been impressed with any of the other commercial real estate listing sites out there, so this new competition is welcome in my eyes. Hopefully this pushes both sites to make improvements and become even better.
Labels: NAR, real estate, Realtor.com
Posted by:
Marie Langhout @ 11:06 AM
Last month, HomeGain, an online real estate marketing company, announced the launch of their new blogging platform for customers of real estate agents.
HomeGain’s Source4Sellers marketing system allows agents to sign up as bloggers on the network and to post their contact information and profiles for consumers seeking real estate.
Users searching for homes in a particular neighborhood will see a display of blogs related to that neighborhood or area from agents working there. Consumers then have the option to contact agents directly from the website through their blog.
Since HomeGain is known in the industry as a lead-generation and sales tool, the blog provides an identifiable way out of that niche by allowing agents to receive some of the web traffic that would otherwise be reserved for HomeGain’s site.
Many other service provider blog programs allow agents to communicate only with other agents, but this tool, designed for the consumers use, is intended to allow direct interaction between agent and consumer, giving agents another way to market themselves and gain exposure to the right buyers.Labels: real estate, technology
Posted by:
Trenton Flock @ 1:28 PM
Michael Jackson, the original Lost Boy, has negotiated a way out of foreclosure just days before his Neverland Ranch was to be auctioned. Colony Capital purchased the $23.5 million loan from Fortress Investment Group and will begin negotiations with Jackson to save his beloved sanctuary/ruin/amusement park from hell.
For the ruined pop icon—who hasn’t darkened the doors of the decaying Indian village or fed exotic animals in his private zoo, now home to domestic algae, for almost three years—it is a sad testimony to his inability to accept the end of his inane and insanely decadent lifestyle. He may simply be hoping to preserve what little equity he has. Half of his 50 percent stake in the ATV music catalog is in place as collateral for a $200 million loan he negotiated three years ago to restructure his debt.
As for his benefactors at Colony Capital who purchased the loan, I cannot say whether they expect to ever be repaid by Jacko or if they expect to eventually take the dilapidated Nymphenberg off his hands as an investment property. The 2,800-acre estate has been valued as high as $120 million, but it is in desperate need of repair: the cost of which will no doubt figure into any deal to purchase it, lowering the sale by a sizable margin if Capital chooses to sell it as a single property.
If the property were subdivided, it could be sold piecemeal for a better profit overall (I call dibs on the Bumper Car tent). It is safe to assume that Neverland will never be restored to its former, nightmarish glory. It took an...extraordinary individual to dream up the theme and layout of the Ranch, and it would take an extra-extraordinary individual to buy it as a residence. If Neverland ever reopens its doors intact, it will as almost certainly be as a tourist attraction, but given its history and the fact that its former occupant is still breathing (in an oxygen tent, through one nostril), it won’t be a viable one until Jacko is fairy dust.
I think the surest investment with the abdicated King of Pop would be a life settlement. To quote the crocodile: Tick tock, tick tock. As a one-time human being, Jackson still inspires some sympathy in me, but the bottom line is he is finished, and he won’t turn a real profit again until he’s halfway to the first star on the right, straight on ‘til mo(u)rning. For now, I only wish him and the goodly pirates at Colony Capital the best of luck.
Labels: foreclosures, Michael Jackson, real estate
Posted by:
Jeremy Ames @ 9:56 AM
Unsure about whether your home may see much appreciation over the next five years, and looking for some liquidity on your home equity? Then a REX agreement might be the solution for you.
What is a REX agreement? What it boils down to is an exchange of cash today for a share in the future appreciation (or depreciation) of your home. Let’s look at an example:
Say your home is worth $1 million today. You decide to take a payout from REX of $100k in exchange for a 40% stake in the future change in value of the home. Without getting into the more complicated parts about how REX structures their agreement to share in the appreciation or depreciation and get their original funds back, let’s consider three different options for sales price of the home after five years.
| Sales Price | Gain/Loss | Homeowner Share | REX Share | Homeowner Gross | REX payout | Homeowner Net |
| $1,100,000 | $100,000 | $60,000 | $40,000 | $960,000 | $100,000 | $1,060,000 |
| $1,000,000 | $0 | $0 | $0 | $900,000 | $100,000 | $1,000,000 |
| $900.000 | $100,000 | $60,000 | $40,000 | $840,000 | $100,000 | $940,000 |
If the homeowner sells for a larger amount, REX will keep a portion of the upside. If the homeowner sells for a break-even price, then the homeowner has been able to use the original $100k payout without any costs other than origination fees for the REX agreement. If the homeowner sells for less than the original appraised value, then REX will actually lose a portion of the original $100k payout it gave to the homeowner. In other words, REX only gets paid (other than a return of their payout) if the homeowner makes money.
While these scenarios may sound enticing as an alternative to using a loan, there are some other key factors to know about the REX agreement:
- Appraisal value – REX’s appraisals will likely come in lower than the bloated appraisals we’ve come to expect in the past. REX requires 6 comps, twice the number of most residential appraisals, and is much more particular about ensuring those comps are actually good comparables for the property.
- Owner occupation – Thinking of using a REX agreement to take some cash out of your home to go buy a new house? That’s a no go. Part of the agreement states that you will continue to occupy it as your primary residence.
- Closing costs – Although REX started with few closing costs, typically paid by REX, they will begin charging a 3% origination fee within the next few weeks.
- Home values – For the deal to work for REX, your home probably needs to be worth $350,000 or more. The average home price that REX has been funding is about $750,000, which is one of the reasons it has only ventured into 6 of the higher-priced states (California, Washington, Oregon, Illinois, Florida and Massachusetts). There are other states that REX anticipates coming online before the end of the summer, including Colorado, Connecticut, Rhode Island, Maryland, Virginia and New Jersey.
- Five year timeframe – The REX agreement includes penalties for selling your home before five years have passed. The penalties are steep during the first year (25%), declining by 5% each year after that. After five years there is no penalty, but REX still shares in any gains in the home’s original appraised value.
- Amount of equity – You’ll need to have at least 25% equity in your property, based on the REX appraisal, in order to qualify. REX will provide a cash payout of up to 13% of the value of the property, which would put the total value of liens on your property at a maximum of 88% (75% in loans and 13% in REX’s payout).
- Inflation – With a timeframe of a minimum five years without penalties, inflation could likely add value to the home (even if the true inflation adjusted value of the home doesn’t change). In that scenario REX would be entitled to share in their portion of that gain.
On another interesting note, the big money behind REX & Co. is AIG. They are not only a major shareholder, but also the institution providing the bulk of the financing for the actual REX agreements. That ought to say something about what the “smart money” thinks about where the market is headed.
Labels: real estate, real estate marketing, REX agreement
Posted by:
Marie Langhout @ 10:01 AM
Trulia is watching you.
This week they announced the development of a widget that will promote listings from neighborhoods based on localized information about the user, capturing the ever-evasive longtail markets.One site of the 50,000 odd sites that Trulia is seeking to partner with in installing the widget is Topix, a Web-based news community that allows users to post and browse articles relevant to their topics of interest.
Today’s widget launch on Topix will show Topix users a grouping of listings in close proximity to them, and clicks on the listings will send them to Trulia to read further.
"We're really excited about this," Trulia CEO Pete Flint said of the new partnership with Topix. "We've seen the best results when we've gotten down to the hyperlocal level. The great thing about Topix is they have a huge national reach as well as local content."Topix is the fourth most-popular stand-alone newspaper site on the internet, as well as the seventh-ranked Web site within the newspaper subcategory of news and information sites, according to comScore. Clearly, this partnership will be a great coup for Trulia.This is not just another widget. Service providers in the real estate industry should see this as a worthwhile tool to promote their businesses online. Topix CEO Chris Tolles says that because the newsfeed is localized, it offers a great opportunity for users to differentiate themselves from other sites. This looks to be another way for service providers to find free exposure on the Web, and they’d be smart to use it.Labels: real estate, technology, Topix, Trulia
Posted by:
Marie Langhout @ 9:25 AM
Franklymls.com, the first wiki MLS, officially launched in early April promising enhanced searchability, more user-friendly tools and—most importantly—the ability to communally modify postings.Founder Frank Llosa of Frankly Realty in Virginia says on his blog, “The goal is to add information, and not opinions…competing agents come together to give what the customer wants...more info and photos.”The site also has a point system to reward agents with outbound links to their sites. One point is awarded for posting a comment, and ten points are awarded for adding a photo album. The user with the most points for a given property gets a link back to their website, and most likely, any business from buyers who view that property through Franklymls. Two very important things are happening with this site: First, buyers and agents alike now have an all-in-one MLS that focuses on the details of properties, and someday may compete with larger brokerages who have built extensive MLS search pages on their sites. Secondly, the site is an excellent source for buyers agents to market themselves through the properties they show. It’s an easy algorithm: The more properties you comment on and photograph, the more outbound links the site publishes back to you. A marketing no-brainer for any service provider in the real estate market.Labels: MLS, real estate, technology
Posted by:
Marie Langhout @ 9:54 AM
Zillow has launched a new platform allowing users to compare mortgage rate quotes alongside their already popular home valuation tools.
The mortgage rate-quote platform will not only help buyers shop for the best mortgage rates, but will also be a lead source for mortgage service providers. And while users’ contact information is not released directly to these mortgage groups, enough information is supplied to enable mortgage professionals to determine the best rate quotes for buyers.
Zillow CFO and VP of Marketing, Spencer Rascoff said that the new platform is intended to protect the privacy of consumers while providing a more accurate and transparent process for quoted loan rates.
It seems that this tool seems will be a great coup for buyers and mortgage professionals alike. For buyers, it will take the pressure out of shopping for the best quotes in person. For mortgage professionals—who pay a one-time fee of $25 to participate—it will provide an excellent lead source.
This new platform will compete with others already available in the loan industry, such as MortgageMarvel.com and LendingTree.com, both of which allow mortgage professionals access to customer information. Both companies list fewer than 280 lenders in their network, while Zillow received over 300 registrations last week alone. Labels: mortgage rate quote, real estate, Zillow
Posted by:
Marie Langhout @ 10:57 AM
The number one place to live and work in the U.S. is Bellevue, Wash. according to a recent CNN Money article.The article lists the coexistence of large companies like Microsoft and Boeing alongside startups, and cites a “highly skilled” local workforce as the driving factor in this city’s marketplace success. Also notable is the absence of a corporate income tax, meaning small businesses are exempt from the B&O tax, so long as they gross less than $135,000 in taxable income. This fact alone has made the area attractive to entrepreneurs and small business owners.Bellevue also boasts one of the better school districts in the state, which—when coupled with large suburban neighborhoods—makes for a healthy family environment. Just 15 minutes across the water from downtown Seattle (without traffic), Bellevue will most likely be an even match to the growing metropolis in coming years.
Also, this view doesn’t hurt:Labels: Bellevue, business, CNN Money, real estate, Seattle
Posted by:
Marie Langhout @ 10:44 AM
Marketing was once the FSBO’s biggest obstacle, but one company, MyMarketware, has developed MarketSites to help sellers overcome this obstacle by creating individual home listing web pages for a property. Whereas other sites list several properties in particular cities, neighborhoods or even streets, MarketSites allows the seller to send buyers directly to their property. View a sample MyMarketware page
here. Sellers can upload up to 100 photos of their property, embed audio and video podcasts, change SEO settings with Meta descriptions and keywords and add RSS functionality to their page. Users can also customize links to their page, and modify their link dashboard within their user accounts, allowing them to be reused for future listings:
After paying the flat $39 fee, sellers can create a URL using the physical address of the property, which is a helpful tool for out-of-town buyers who may not know the area in which they are looking to buy.
Listings are syndicated by some of the bigger seller sites like
Trulia, Craigslist, Yahoo and Google Base.
For more information and updates on the site, visit the MyMarketware blog.Labels: Craigslist, For Sale By Owner, FSBO, Google Base, Marketing, MarketSites, MyMarketware Blog, MyMarketware.com, real estate, real estate marketing, RSS, technology, Trulia, Yahoo
Posted by:
Marie Langhout @ 10:38 AM
Choosing a real estate agent can be a daunting task, but this week two new sites have launched that may help buyers and sellers discern the good agents from the bad.The first, Incredible Agents (sister company of Incredible Agent), is a real estate agent review site that allows buyers and sellers to rate their agent to help other buyers and sellers find the right agent for them. One of the cooler features on this site is the ability to directly interact with agents that you’ve reviewed: When you write a review, the agent can comment back on it. The site also features agent interviews, whereby users can anonymously ask a variety of questions to a series of agents. This is a feature that I haven’t seen on any other site, and it should gain some traction among consumers.I especially like Incredible Agents’ logo because it reminds me of The Incredibles, which is one of my favorite Pixar movies.The second site, AgentRank is still in beta form, but will allow users to search for agents and reviews by city and endorsements by other users. What makes the functionality of this site unique is the access users have to an entire database from a single location–pretty sweet.Let me know what you think about these sites once you use them. I’m curious to see what kind of traction they get.(Via Dustin at 4Realz.net)Labels: 4Realz, AgentRank, IncredibleAgent, IncredibleAgents, Pixar, real estate, technology, The Incredibles
Posted by:
Marie Langhout @ 4:17 PM
As final legislation on foreclosure rescues near, real estate agents are pulling out the (bus) stops to sell pre-foreclosure and bank-owned homes. Brokers are offering bus and limousine rides to groups as a unique way for investor clients and first-time buyers to view several properties in one meeting.Agents with The Gold Rush Group in Auburn, California, a suburb outside of Sacramento, have rented a stretch-SUV limousine to cruise clients around properties in style (and efficiency). Other companies are organizing bus tours, complete with slide shows and presentations to educate buyers about the purchase process. One brokerage, RE/MAX Central in Las Vegas has even offered agents on the tour for the purpose of drafting purchase and sale agreements on the spot. Often, guide packages with area details and comps are included in the tours—a great deal for first-time or out-of town-buyers.These tours, while fun and convenient, feature advertisements and free-with-purchase deals. In the case of RE/MAX CENTRAL, the bus itself is an advertisement on wheels. The benefit to buyers is the ease with which they can view and tour properties, and many first-time buyers and investors are getting into properties they otherwise would have been priced out of or avoided because of these tours.Cesar Dias, an agent operating out of Stockton, Calif., was covered on a segment of “60 Minutes” to talk about his tour. He said that foreclosure tours accomplish the two goals of finding buyers in down markets and selling properties—all in one fell swoop. A simple Google search brought up several tours all over the country. This gets me thinking—and cringing—about the term ‘foreclosure tour bus.’ As the foreclosure market looks to be bottoming out, is this a last ditch (and expensive) attempt to sell a few extra homes? Inspectors are on hand at the homes, as are lenders, in an attempt to unload these properties from the banks. Depending on how you look at it, this could either be a sales trap or a great opportunity to buy a quick property. I’m not so sure I’ll be hopping on this ‘buswagon’.Labels: 60 Minutes, Auburn, bus, California, foreclosure bus tours, foreclosures, Google News, investors, Las Vegas, real estate, real estate bus, Stockton, tour
Posted by:
Marie Langhout @ 3:12 PM
A lawsuit filed by ActiveRain against Move Inc. has finally received clearance for a court date and jury trial that will take place in December. Move Inc. (formerly Homestore) is a public company that operates move.com and Realtor.com through a contract with the National Association of Realtors (NAR) trade group. ActiveRain is a social networking online community with close to 75,000 members who use the site for interest groups, blogging and online networking.Among other things, the lawsuit alleges that Move Inc. approached ActiveRain in hopes of purchasing their website, and then intentionally fell into breach of contract by engaging in fraudulent activity and unfair competition during the failed acquisition. Move has countered that they believe their actions were without malicious intent, and conducted in fairness.The lawsuit further alleges that officials at ActiveRain were misled when they were told that the acquisition was nearly complete. They believe this is further proof that Move was trying to acquire “highly sensitive material about its members and its network or platform in electronic format, in anticipation of the supposed impending closing.”Both parties are currently in the process of gathering data and depositions.
Labels: ActiveRain, lawsuits, Move Inc., NAR, real estate, Realtor, Realtor.com, technology
Posted by:
Marie Langhout @ 4:27 PM
The year is 1961. In the midst of the Cold War, the US government is building hundreds of Atlas-F missile silos in upstate New York in the event of a nuclear attack...which never comes. Equipped with air and land access, these silos sit, nestled underground, unused and completely unknown for several years. What the general public won’t know until many years later is that these long-abandoned silos will be prime for human occupation–in accessibility and functionality.
Straight out of a Bond movie, cousins Bruce Francisco and Gregory Gibbons purchased one of the missile silos and converted it into a multi-level underground luxury home. By renovating the 2,300 square foot control center, the cousins made a bleak and vacant space into a two-story, 3 bedroom, 2.5 bath home. Sliding ‘Star War[s]-like doors’ between the open living area and the kitchen serve as entry into a tunnel which accesses the main chamber of the silo–a 20,000 square foot, nine floor steel structure.
I wonder if Alfred Pennyworth, Bruce Wayne’s butler, could be hired to park my bat mobile the dark depths of these silos.
As of 2001, the cousins had listed the property at $2.3 million, boasting:
“(A) new well, 200 amp electrical service, phone, original 1800 gallon functional septic. Contemporary fiber optic effect lighting along with natural sunlight rendition back lighting. High circulation venting (two 18" vent tubes), specifically designed to handle the demands of everyday living as well as those that may be posed in a crisis situation. (i.e. a nuclear or biochemical attack)."
I haven’t been able to determine if they sold it, and if so, for how much. I assume they purchased it from a
government property auction, which avails government land and property to citizens looking to buy.
I hope we will never need to consider living in security-enhanced, nuclear and biochemically safe structures, but in the case we do, I suppose it’s comforting to know that they exist. And it doesn’t hurt that they could be kind of swanky in a post-apocalyptic chic sort of way.
Labels: alternative investment, government property auction, missile silos, real estate, unique housing
Posted by:
Marie Langhout @ 3:51 PM
If you get the notion to head to Chesapeake Bay, Maryland, you will see nestled on the periphery of the predictable craftsmans, bungalows and Martha’s Vineyard-esque properties a lone house that goes by the name of the Loblolly House.Architected by KieranTimberlake Associates, LLP partners Stephen Kieran and James Timberlake, and named after the tall pines that surround it, the Loblolly house serves one simple purpose outside of acting as a residence: Design for disassembly.Since the average home has a lifespan of less than 100 years, Kieran and Timberlake are seeking ways to build homes designed for disassembly. They believe that builders and architects should look at the future of the properties they design before building and look for ways to build responsibly using renewable resources.The house, which was assembled in less than six weeks, relies on a solid aluminum frame to keep it sturdy. Kieran and Timberlake claim that the house will come down just as quickly and efficiently as it was built.Architecturally, the design speaks to my inner art historian. It has the linearity of Mondrian, paired with the sterile but natural wooden influence of Frank Lloyd Wright, polished off with the modernity of Bauhaus’ Gropius. Perhaps redeeming the ugly ceiling fans, is the design team’s (or photographer’s?) use of the Eames chair in the interior of the house. The design inspiration for ‘Kit of Parts’ comes largely from the Eames’ aesthetic.The Loblolly House is made up of ‘smart cartridges’, which are floor and ceiling panels containing all of the utilities needed to make the home livable including electrical, heating and fire detection devices. The exterior and interior are completely made of wood (with the exception of the aluminum framing) that is Forest Stewardship Council-approved birch, bamboo or plywood. Its finish is entirely nontoxic.Another interesting feature is the home’s positioning and foundation. Because it is built on structural piles and raised off the ground, it does not damage the coastal land on which it rests, nor does it disrupt the animals living nearby, as they can still pass underneath it. I was encouraged to hear that the Loblolly House will go into mass production with Steve Glenn’s LivingHomes prefabricated development company, a milestone for the efforts of green developers worldwide. And investors take note: The idea of environmentally responsible, portable and prefabricated homes is an intriguing one, especially considering the amount of interest the Loblolly House has generated (they are producing a book in May, Loblolly House: Elements of a New Architecture). I expect we will hear considerably more about Kieran Timberlake in the near future.*All images are courtesy of KieranTimberlake Associates, LLPLabels: architecture, green investing, real estate, The Loblolly House
Posted by:
Marie Langhout @ 12:05 PM
You may have seen the show Trading Spaces, but today NuWire published an article about a different kind of space trade: Permanently swapping houses.
Being that the article is in tune with this week’s theme of unique housing ideas, I’d encourage you click through to read more.
Happy reading!
Labels: alternative investment, house swapping, real estate, unique housing
Posted by:
Marie Langhout @ 4:37 PM
Can’t afford to build a house? Grow one. In keeping with this week’s theme of unique housing, I found Terreform.org, a nonprofit group dedicated to the preservation of ecology and the urban environment. Their pièce de résistance, among many other endeavors, is the pursuit of sustainable green development grown naturally.
The two architects spearheading the ‘Fab Tree Hab Treehouse’, Mitchell Joachim and Javier Arbona of the Smart Cities group of the MIT Media Lab, are working with Lara Gredem, an environmental engineer from MIT, to develop a house that grows itself. 
The intention for these homes (and all other projects on the Terraform docket) is to create a food source for some organism in each stage of its life.Their idea is organic in origin and execution. The project starts by staking a plywood structure into a tree and growing a house out of the tree itself around the plywood, using renewable resources to feed it. Once the tree intertwines around the basic structure, the original plywood form can be removed and reused to build another structure for another house, and so on.
The interior of the house is made of plaster, mud and other building materials–all natural and eco-friendly wherever possible. The idea originally included glass windows, but the designers are researching soy-originated transparent materials that can grow and expand as the physical structure grows inside the tree. A heat source for water and air would be provided by active solar hot water pipes which heat radiant flooring.
Joachim explains it by saying:
“Our dwelling is composed with 100% living nutrients. Here traditional anthropocentric doctrines are overturned and human life is subsumed within the terrestrial environs. Home, in this sense, becomes indistinct and fits itself symbiotically into the surrounding ecosystem.This home concept is intended to replace the outdated design solutions at Habitat for Humanity. Our goal was to propose a method to grow homes from native trees. This enables these new local dwellings to be a part of an absolutely green community. Pleaching is a method of weaving together tree branches to form living archways, lattices, or screens. Templates, cut from 3D computer files control the plant growth in the early stages.”
It all sounds great, but isn’t it faster to just build a house? How long will it take to grow one? The easy answer is five years. Joachim is looking into a particular self-grafting plant, unique for its growth speed and intertwining roots and branches. Two issues, raised by Mike Rollins, are that of zoning and maintenance. First, any permanent structure requires a building permit, and because these treehouses are too organic to be considered permanent settlements, they cannot be built using the same permits a traditional home requires.
Second, the houses would be less resilient against severe such as storms floods and high winds.
Joachim, Arbona and Gredim are all at work researching developing these homes en masse on a farm, then transplanting them to their permanent locations. All of this makes me imagine a world where sustainable development and pristine suburbia live happily ever after. Perhaps it’s not too far off.
*all photos are courtesy of Terreform.
Labels: green investing, real estate, treehouses
Posted by:
Marie Langhout @ 2:04 PM
Treehouses conjure up a variety of images for different people. Some see ostriches and the Swiss Family Robinson. Others see tree lovers tied to sky-scraping Pine trees. Children see a playground.
But for me, treehouses conjure up visions of my childhood in Salinas, California. Protected by a fortress of poison oak (I’m immune), it was my secret hiding place where no one could pester me.
As consumers become increasingly energy-conscious, builders and developers are making efforts to appeal to the ‘green’ masses.
One such effort, treehouse communities, is rising in popularity. Some consumers are choosing to live in trees to protect the environment. Others are searching for sustainable ways to retreat from the everyday hustle and bustle of the world. Many people enjoy the sense of community that these developments offer. One such community in Costa Rica, Finca Bellavista, boasts “an opportunity for a sustainable and harmonious lifestyle for property owners in a rainforest environment.”
Personally, I find some of these treehouses, especially these by co-op Baumraum visually appealing.
But they all serve a common goal: Quality of life in a Sustainable development.
The dangers are numerous, of course. What happens in a drought? What about tree disease? And Bugs? Treehouses are not for the faint of heart (or those with acrophobia). In the wide world of lifestyle investments, treehouses are certainly paramount.
Would-be buyers should take notice: there is more to treehouses than meets the eye. If you can’t afford a house, or are wary to buy a treehouse, you can grow one. More on that tomorrow.
Labels: alternative investment, architecture, real estate, treehouses
Posted by:
Marie Langhout @ 2:24 PM
Some advice for all of you potential homebuyers: OpenHouse.com is a website that may save some precious few hours of your weekend.
It enables users to search for open houses by zip code or state, giving buyers the ability to plan and schedule around the times of the open houses they’d like to attend.
Buyers are able to browse pictures, virtual open houses and videos of properties. Even better is the feature that lets users plan a route of open houses–optimal for the investor looking out of state.
After trying a few searches, I learned that searches for properties are optimized by searching by city rather than zip code. While this could be a useful tool in the future, the site is just too new to list a concentrated number of properties in one zip code.
A search for Las Vegas, Nevada brings up 37 listings, all showing this weekend.
I also quite appreciate the site’s simplicity. It’s refreshing to see a site do one thing, and do it well. I’ll keep you posted as I learn more.Labels: real estate, technology, time saver
Posted by:
Marie Langhout @ 5:05 PM
Seattle has birthed yet another real estate tech start-up. This one, SecondSpace, seeks to make home ownership easier for those with pockets deep enough to own second homes. Considering some 40 million Americans own a second home, it sounds like they’ve tapped into a solid market.
The issue for those buying second homes is not usually affordability–more likely it is the challenge of finding the right property to fit their needs. Do they want a house on the water or in the mountains? Overseas or within easy travel distance? Maybe they simply want raw land to build their second (or third or fourth) home on. All tough questions for the discerning buyer.
Through ResortScape, a user is able to go in and survey properties based on price range, type of property and physical location. A simple search for a property in an "ocean/seaside" lifestyle, for $400 to $800K in an unspecified location quickly brings up 63 listings varying from condotels to single family vacation homes–all for purchase.
Even tougher, some may argue, is what to do once the property is purchased. Many require renovations, maintenance and upkeep. SecondSpace claims to easily connect buyers with service providers able to assist them with their needs while they are away from their homes.
SecondSpace is aiming to establish itself as the preferred site for those looking to buy second homes worldwide. In partnership with their two other sites, ResortScape and LandWatch, SecondSpace recorded well over $1M in revenue in 2007.
Backed with $6.6M from Ignition Partners, the company employs people from Seattle-area companies such as Microsoft, RealNetworks and Amazon.
Keep your eyes out for more from SecondSpace–while they aren’t the only ones catering to consumer lifestyle needs, they appear to have the resources and partnerships to do it right.
Labels: real estate, Seattle, technology
Posted by:
Marie Langhout @ 4:51 PM
In theory, this blog is supposed to discuss interesting people doing exciting things within the world of real estate and other alternative investments as well as highlight new technology and interesting news.Today’s post, however, is going to be a little different. I suppose you could categorize it into "interesting things."In my position at NuWire, I’m always looking for ways to engage investors, service providers and people who just want to learn about alternative investments. It’s a bonus if I get to do it in a way that’s exciting and new and helpful. That being said, I’m always looking around for the next best thing. I’m always looking for ways to educate readers.I’m about to scoop you on something (sense the buildup). One of my top informants for the past year has been the Rain City Guide, a contributor-run blog out of Seattle. Not all of the contributors write about Seattle-related topics; in fact, some of the most compelling information about the newest and biggest and best within real estate is in this blog. Many of the contributors have their own websites and blogs, which I also enjoy keeping up with. Dustin, who also writes 4realz, is a favorite of mine to read. I think aside from Top Pot Doughnuts and my favourite guilty pleasures, Impulse and Lambs Ear, Rain City Guide is one of the best-kept secrets in Seattle. (And you thought I was going to say Starbucks).I’d encourage you to check it out. Multiple posts are made daily, and I bet that soon you, too, will be adding RCG to your blog roll.Now, go tell all of your friends my little secret.Labels: interesting things, real estate, secrets, technology
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Marie Langhout @ 4:06 PM
I just received a call from my friends’ cousin Mikey, who was planning to move into my basement in the wake of a condo conversion in his apartment building.
Cousin Mikey, I just found out, isn’t moving in after all. His landlord informed him and the other 100 tenants in his downtown pre-war apartment complex that they could, in fact, keep their homes. The developer changed their mind, deciding that condo conversions are just too saturated in this market.
Apparently Mikey isn’t the only one living with the tug of war between tenants and developers.
Seattle’s real estate market has seen condo conversions drop sharply since a peak in 2006 because of changes in our housing market, including demand for rentals, housing costs and developers’ ROI.
This week, the House is considering a bill that proposes three things for Washington state:
- Developers must give tenants 180 days notice prior to development and are not allowed to start construction during the notice period.
- Monetary assistance would be granted to qualified tenants--qualifications would be determined by the tenants' earnings. Developers would have to pay tenants up to three times the monthly rent to cushion moving out and into a new building.
- Local governments would be given the faculty to put a cap on the number of apartment/condo conversions in the city.The city of Seattle is supporting this legislation.
I’d like to make one point clear before discussing this any further. I agree with the first two proposals. It’s the last that I take issue with, and it’s the last that deserves serious discussion.
Seattle is notorious for being one of the most expensive cities in the U.S. in which to buy real estate. It’s also one of the best cities in which to live, in my humble opinion, but still one of the most expensive.
Why, then, would our local government seek to put a cap on how many condominiums the city can build/convert? Because, in their minds, the city needs to stabilize the increase in development and give the market back to renting tenants who cannot afford to buy.
I suppose I see both sides of the argument, but as a single girl living in the city, if the condo shoe fits, I’ll wear it--just as soon as I find that right shoe. Er, condo.
What happens to the person who enjoys the benefit of home ownership but doesn’t want to move to the suburbs? Or can’t afford to buy in the suburbs? They are stuck renting.
There is a huge and stable market here for (semi) affordable homes among gen x and gen y-ers alike– and those (semi) affordable homes? They are condominiums, not single family suburban residences.
Investors should keep a close eye on this legislation because if the local government adopts this cap, it will not only affect landlord/tenant state laws, but limit the amount of properties available to purchase.
But, good for Cousin Mikey. And, good for me. I mean, I’m a Led Zeppelin fan, but...c’mon.
Labels: condo conversions, development, investors, real estate, real estate law, Seattle
Posted by:
Marie Langhout @ 12:21 PM
There’s always talk in the blogosphere about the elimination of the MLS. While no one can say for certain that it’s going to happen, there are several websites stepping up and launching platforms to provide many of the same resources as the MLS–some even bigger and better.
One such site, Seattle-based Estately offers functionality that users may be accustomed to: area comps, saved searches, listing details, neighborhood specs (including school information) and maps.
But pay attention. Estately's unique features could play a small part in the eventual wave of sites that may eventually overtake the MLS.
One such feature caught my eye: the ability for (forgetful) users to tag properties for the future. “Keeper,” “watch this one” and “no way--stinky cat pee” are all terms that one may find useful in remembering specific details about properties. Users can then search Estately’s database of homes as well as their own archived lists by using these tags. This is useful for people who like sticky notes and strings on fingers and things of that nature (ahem).
Additional search functionality allows users to search by selling term. For example, the search term "short sale" will bring up several Seattle short sale listings. Try the same for the term "motivated seller" and you’ll see 10 times the amount of listings. Pretty cool for the niche investor.
Agent match is a great tool that they are developing for buyers to be matched with the right type of agent for their needs.
Another two reasons I like Estately:
- One of the owners (and resident blogger) and I share an affinity for the best bar in Seattle's Georgetown neighborhood.
- No ads. How refreshing.
Labels: real estate, service providers, technology
Posted by:
Marie Langhout @ 4:57 PM
These days, the word Baghdad conjures up ugly pictures in most Americans' minds: War. Terrorism. Heat. Desert. Bombings. Real estate.Excuse me? Did you say real estate? Coverage within the past month about Baghdad’s real estate market–a result of Iraqis' mass exodus from the city–has investors worldwide buzzing. Rents and home prices dropped significantly as Iraqis fled the city in search of more stable living conditions. 
With supply declining, Iraqis are stuck between a rock and a hard place, many searching for homes that simply do not exist. In the face of over 46,000 Iraqis returning to Baghdad from places like Syria, demand is high and supply is null.What does this mean for U.S. investors?Some may argue nothing and say that investors willing to risk buying in such a volatile market may as well invest in San Diego, or Seattle, for that matter, and call it good. The market contains everything from small homes which sell quickly, often after bidding wars, to larger multi-million dollar homes. Others say Baghdad's real estate market is significant. Rising population and real estate prices in any city equal more development, more development means more jobs and more jobs mean…well, you get the point.But why the sudden interest in real estate in this war-torn city?Many of the larger homes have inflated prices because buyers, who have made money off government contracts, corruption and looting, are willing to pay 10 to 15 percent more than the home's value.Some homes are dropping in value–owners desperate to unload properties in less-than-safe neighborhoods. Those homes sell, too–and fast. Both factors are resulting in serious opportunities for investors willing to take the risk.As an investor, would you consider Baghdad? I’m quick to say no–but stopping to think twice.Labels: economics, international, investments, real estate
Posted by:
Marie Langhout @ 5:52 PM
I’ve noticed something in my metropolitan Seattle neighborhood recently: red and white signs popping up where John L. Scott, Windermere and Coldwell Banker signs formerly snuggled comfortably into the ground.
With home sales slowing, sellers are trying to find more creative ways to list their properties and save on selling costs. One of those ways? Getting rid of the middleman.
2006 and 2007 brought an onslaught of online real estate companies designed to automate the buying and selling process as a broker, saving both the buyer and the seller money.
Four of the most well-known companies in this category are Trulia, Zillow, Terabitz and Redfin. Despite the slump in the real estate market, all four have received great amounts of funding from large VCs within the last two years.
All of this got me thinking...
The idea that a product could sell even in a market slump is an interesting one. And even though real estate has cooled off in most parts of the world, these companies are still trending upwards, though not as quickly as first anticipated. They provide a cheap alternative to selling and marketing in an otherwise deteriorating market.
The clear benefit that buyers and sellers alike see in these companies is the elimination of the middleman. And some of these sites, specifically Trulia, are becoming more and more user-friendly.
Case in point?
Trulia launched their new Trulia Publisher Platform in January, allowing publishers use their search technology, with listings, under the umbrella of a publisher’s co-branding, all at no cost to the publisher. This is essentially the real estate world’s equivalent of using Google AdSense to advertise properties, but in a much more cost- efficient way.
It’s a win-win. Publishers get real estate-related traffic back from Trulia, and users get the benefit of co-branding with larger publishers. Mark my word, this will change the game of web marketing and advertising for real estate.
Zillow’s answer to Trulia’s Publisher Platform is a new feed format that will work in conjunction with Trulia – but stay tuned -- more on that tomorrow.Labels: development, real estate, technology
Posted by:
Marie Langhout @ 4:08 PM
I may have been living under a rock, but the idea of writing an essay to win a home is a new one to me. And apparently, luck has nothing to do with it.This practice, involving one essay, one entry fee (normally less than $150) and a tenacious attitude has been around since our ancestors in New England have had a need to disperse property. Two modern–day examples:In 2004, Claudia Johnsen, a 79-year-old resident of Alexandria, Va., offered to give away several plots of land and pre-existing homes in Virginia to essay contest winners. The prizes? Two condominiums in Alexandria, a waterfront strip in Stafford County, a vacation house near Hot Springs, Va., and one-third interest in a Temple Hills apartment complex.
One day, while watching Oprah, Johnsen witnessed a guest telling a story quite similar to hers, except the guest had profited from selling an inn. She thought it was a fascinating idea, and contacted Oprah's guest. She bought the contest rules for $750 and after making a few small changes to the policy, she organized her own online raffle.
Contestants would have to submit a $100 entrance fee along with an essay of 75 words or fewer explaining why they wanted to own one of the estates.
Example 2:
Wesley Ludlow and his wife, J.J. Rodgers, were unable to sell their 4-bedroom, 2-bathroom house because of the dormant real estate market in their hometown of Red Feather Lakes, Colo., the Washington Post reported.
They decided they needed a solution to the problem of having a second mortgage, and wanted to sell the home that had been sitting by its lonesome since they built a newer home closer to town. They chose to try and raise $200,000 by asking for essays of 500 words or fewer and a $100 entry fee.
They determined that if they could not get over 2,000 entries they’d return to selling their home the traditional way.
Why is this interesting--aside from the oddity of it all?
At first glance, while this may look like a gamble, the end result is in the hands of the seller. They stand to profit from the entry fees at a price far beyond what many of these homes could originally appraise for. Of course, the risk lies in how the contest is marketed. Websites have been established to market and advertise these contests, but many are out of date and don’t target the right types of people.
In the end, Johnsen could earn several million dollars more than it’s appraised value for her estate as a result of her marketing efforts. The estate has been appraised at $3.7 million.
Johnsen is unsure how much money she will make at the end of the deal because overhead costs are often unpredictable. State Government determines the maximum number of entries that can be accepted, but Johnsen determined the minimum and holds the power to cancel the contest if she chooses.
The jury is still out for Ludlow and Rogers, who have not yet chosen an essay winner. If they meet their requirement of 2,000 essay submissions, they plan to put the surplus money towards their children’s' college educations.
The clear benefit for investors is the ability to simply settle their estate issues and potentially profit from selling real estate in an otherwise fairly stagnant market without picking up the phone to call a real estate agent.
The question? Who's keeping Uncle Fred from winning the house?
Labels: finance, investments, people, real estate
Posted by:
Marie Langhout @ 8:52 AM
I’ve been lucky in the past few years of my life to travel the world. The places I’ve seen, the people I’ve met, and the experiences I've lived all hold a very special place in my life.
I’ve also been lucky enough to spend several years studying French. So, I guess you could say that I am interested in (nay, obsessed with) any proposed perversion of their culture.
Buti Saeed al-Ghandi, a developer with head of Emivest, an investment and development group in Dubai has just returned from a romantic getaway to Lyon, France with his wife. Imagine his memories! The streets, the food, the culture, the…romance. He was sold. He also had an idea: to plant a mini-Lyon inside of Dubai – complete with designs inspired by architecture in modern-day Lyon.
Why does this matter to you?
He has just signed a memorandum of understanding with Lyon’s mayor, Gérard Collomb, and anticipates sealing the deal on his next visit to the city.
I know, right? “Choc! Horreur! Quelle parodie!” Screams my inner Francophile.
Ghandi’s plans include a university, museums, restaurants, shops, pedestrian streets, courtyards, and a town square – all replicating Lyon. His time spent inside the 19th century Notre-Dame de Fourvière Basilica may even inspire a church – yes, a church – right next to a mosque.
This can’t be so bad, I tell myself. I read on:
Location is still up in the air – discussion has involved placing the ‘little Lyon’ on upwards of 1000 acres of land. Potential spots include an urban area by the tallest building in the world, the Burj Dubai Tower; a plot of desert land close to the second international airport, which has not been built yet; and "Dubailand," which is a $10 billion complex including theme parks and entertainment that is currently still under construction.
Any way you toss it, this project is ambitious, at best. And also? A total perversion of French culture. It’s like calling ‘Paris’ in Vegas … well, Paris. The manager of the project insists, however, that it’ll be a far cry from anything Vegas or Disneyland.
What about atmosphere? How does one create a street comfortable enough to stroll down in the middle of the desert heat? I fight visions of massive fans. Somehow I keep thinking about the movie ‘Bio-Dome’ with Pauly Shore.
Naturally, my instinct is to worry first about the wine, and then of course, the food. French culture is known for not only their love of cured meats and delectable cheeses, but their wine, most of all! Muslim countries ban not only meat, but all forms of alcohol. Dubai is a modern city, however, an international hub, even – and tends to be more lenient about those rules. I am still skeptical. I think they still allow cheese. In any event, my logic has kicked in. What does this mean for the commerce in the city? What does this mean for investors? Particularly investors interested in saturated (yet successful) international markets like Dubai? What it means is a potential boost in the economy of this emirate – and fast. Things are looking up, perhaps.
This project, if it breaks land, will attempt to bring not only the charm, but also the economic successes of Lyon to Dubai. Lyon is currently one of the world’s most popular (top 30) convention sites. Readers Digest named the city the 7th most livable in the world last year. It is for good reason that Ghandi would like to replicate it.
Any way you flip it, this project is interesting. Skeptics are concerned about any attempts to recreate French culture in the middle of the desert – and rightly so. I recall from my days in art history class learning that Lyon was second only to Venice in its light origin – some of the world’s most important pieces of art were painted there. How can that same light be recreated in the middle of the desert?
Again, I digress.
Clearly this project represents great opportunity for investors interested in overseas markets. It also represents great opportunity for further economic development in (the seemingly few) areas of Dubai that are suffering.
My inner Francophile is still screaming.
Labels: development, international, investments, real estate
Posted by:
Marie Langhout @ 12:47 PM
In a world full of ‘experts’ willing to sell you any kind of ‘expert advice’ on just about anything, a person is scarce to come across a book worthy of purchase. Toss in that same book, and add to it a controversial topic in the real estate industry, and you’ll have people running into next week.Frank Curtin has been featured by NuWire before. I’d like to take a moment to mention what we didn’t spend much time on in the original article about him. Frank has a heart for people – specifically a heart to educate people - that is clear. He is also an investor who works with foreclosures. For some, nay, most people, this could be a challenge. You see, Frank is an investor who’s helping people who are facing foreclosure, and helping investors who work with preforeclosure properties. Not just by offering them a cure to their financial ailments by purchasing their home, but by first diagnosing the ‘disease’.With all due respect to investors who prefer the strategy of buying pre-foreclosure properties – there is a serious problem in our country – serious enough to merit ‘crisis’ level attention. Serious enough to get the government to consider cutting its citizens checks (this is a whole other blog post).The problem does not just lie with predatory lenders, or predatory investors. The problem lies with people who are unable to manage their mortgage commitments due to their life circumstances. The problem has to do with mismanagement of finances coupled with dreams and visions of home ownership. Now, without getting into my personal opinions on personal money management (they are quite strict, and I’ll leave it at that) – I appreciate Frank’s approach to working with his clients in this dire state. I appreciate his willingness to help solve the root of the problem, rather than let visions of dollars direct his actions. I also understand that this approach is unique, and some may disagree with it, which is why I’m writing about it here.Frank is the first to admit that his primary objective with his business is to help people keep their homes. He happens to make money doing it, and that’s fine. He is an investor, after all.
Very simply, Frank and his partner have put together a book called The Mortgage Survival Guide, and an asset planning program to help homeowners facing foreclosure determine where they are in terms of their assets. The materials teach these homeowners how to approach their lender, and work out a mutually acceptable agreement. If, in the long run, the program doesn’t work for the homeowner and they do end up having to foreclose on the property, Frank and his partner have a second solution for them.Where this is important to investors is in the training Frank’s program gives investors who work with preforeclosure situations. He explained it best in our article:
“Following the book publication, we quickly realized that families who are late with their payments aren’t buying anything. So we created The Mortgage Survival Guide Associate Program. Our associate program trains professional real estate investors how to work with homeowners.
The investor buys 60-day mortgage late leads from us, along with a case of books, and they gift it to the homeowners who decide to participate in the program. So with this program, the homeowner will decide for themselves whether or not they can afford their home. When they can, we simply wish them well, and we ask them to consider maybe paying it forward. And when they decide to sell, our investors step in and use a variety of investor strategies, depending on the specific situation, to help that homeowner avoid foreclosure.
The best part of the system is that we have exclusive 60-day mortgage late leads which enable us to reach homeowners long before it’s too late.”
The foreclosure market is controversial – no one can disagree about that. Any topic is going to be difficult when you’re dealing with discussing the lot that life has given someone, and the basic need for food, water and shelter. Throw a family into the mix and there is no denying that there is a major human element in investing in preforeclosure properties.
The undeniable benefit that Frank brings to the game is putting the decision to go into foreclosure back into the hands of the homeowner, empowering them to either find a solution, or bow out gracefully. It allows some dignity in an otherwise demeaning situation.
I believe that investing in foreclosures can be smart for the right investor – the most important part is knowing what motivates you. For Frank and his partner, education comes first, and the investment deal comes second, and I sincerely hope that his approach continues to make waves in the investment world.
Sidenote: If you have a second, visit www.5000families.org- Frank and his partner have teamed up with this site to help families in financial hardship. Labels: economics, finance, people, real estate, service providers
Posted by:
Marie Langhout @ 1:24 PM
Real estate investors know one thing all too well in the everyday rat race of the world of investments – the familiar challenge of finding credible information sources to turn to when considering a new investment.In my position at NuWire, I always have my eyes and ears open for interesting people doing interesting things. Amy Phillips, CEO of DeedQuest is just that – she’s not only a female entrepreneur, she’s also developed a company that provides a tool that will be, in coming months, quite helpful to investors looking for a practical way to evaluate deals, strategies, and ideas.The purpose of DeedQuest is to streamline the process of real estate investing by creating a platform of people, resources, data and tools that’s accessible to all investors, or would-be investors. I decided to hop on and register to see what kinds of tools are available, and scope out the user interface.Now, a disclaimer: Bar-none, the most common complaint that I hear is that the biggest frustration investors have with the real estate market today is the lack of accountability among service providers and so-called ‘experts’. It’s hard to know who to trust. And who to pay for advice. And really, should you have to pay for advice, especially when said advice comes under the guise of five DVDs and a handbook? Frankly, that’s one of the reasons that NuWire exists, and one of the reasons I so enjoy being a part of the team here – we have taken on the duty and obligation of due diligence and education in an industry that makes a lot of empty claims. But I digress. I get excited about companies that exist for the same purpose that we do – this industry is in need of some strict accountability – and fast.So, I registered. Here’s what I learned: members of DeedQuest have the option of searching different markets for deals, statistics and data, news and are provided links for other resources that pertain to the area they are interested in. They also are able to analyze properties they are interested in using the built-in property analysis tool, which allows them to calculate potential return on investment and cap rates for different properties. Members can also participate in forums, search properties and save their searches and listings within their profile.All in all? Quite impressed. This is a tool that investors would be wise to take advantage of.
I have to admit to being pleasantly surprised with the functionality and ease that DeedQuest offers investors to analyze deals and learn about new investment strategies. Okay, okay. That, and I’m excited to poke around and learn more about other members.Labels: people, real estate, service providers, technology
