A Word to My Friends in The Print Media

Here it comes! The doom and gloom! Sales this September, October and November are going to be WAY down from the same time period as last year! Before you report that the market is CRASHING and that real estate is getting worse, PLEASE consider the following!

The ORIGINAL end to the first time home buyer tax credit (that was also being used by non-first time buyers, thank you Mr. President) was originally supposed to end on November 30th, 2009. Needless to say, everyone was in the hunt to get the “free money” our government has been giving away to people who don’t really need it the past two years.

The bottom line is this. THE TOTAL NUMBER OF HOUSES SELLING IS ALMOST EXACTLY ON PAR WITH 2009. The volume of sales was just spread out more evenly as opposed to peaking every time the government established another extension of the tax credit. Further, prices, at least in Tampa, have remained very steady over the past year and I only see the luxury market poised to take another hit in values at some point in the future if the economy does not get any legs to her SOON.

To report a bottoming out real estate market, even though the wires will be full of such information, it will pay to do the homework and look at the entire number of sales, YEAR TO DATE from 2009 when making such comparisons. Although I love stories on real estate, sometimes all that negative press scares away the buyers and that has a huge impact on our economy nationwide.

Why should the investors make a killing while the average Joe is apprehensive to buy those great deals. I have not seen so many investors buying up real estate since the early 90’s. THEY are not impacted by the national media and are making a killing. Realtors that represent those investors are also along for the ride. But the average American needs to know, that over the course of history, buying a home is one of the best investments you can make!

A house in Tampa that was built in the 1970’s for $20,000 in now worth over $200,000 (and was worth $400,000 in 2005). A person RENTING that home paid almost the same payment except the buyer has long since paid this home off and received a great tax break while he had a mortgage. The rate was fixed for 30 years (so the payment never changed) while the renter got price hikes at every renewal. Look at that house value over time. Even with today’s value, that homeowner would tell you that buying a home in the 1970 was one of the smartest financial moves he made in his life. The SAME THING that buyers who bought in 2009 and 2010 are going to be saying in the future.

Will somebody PLEASE run a story on the long term value of real estate and the trends in has run over the last 100 years? THAT would be a great story, a feel good story that would actually HELP the situation out. After all, the media was certainly fanning the flames in 2004, 2005 and 2006 giving consumers the confidence to all walk off that cliff together. Now we need that type of reporting going the other way to ease concerns of those who bought and got burned.

To those investors who bought in 2005 for example and own a home in a community worth 50% less than what you paid for yours…… go buy two or three more of the same model NOW at 50% off and put your renters in their. Those values will rise in the future and the huge profit you make will more than offset the loss on the one you bought. Just like the stock market! You bought stock in a company you have confidence in too early and it is down 50%……. if you believe in the product, go buy more at the discount to offset your loss. THAT make perfect sense to me………..

What say you?

http://www.headofrealestate.com

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A Case For Real Estate / The Great Depression

This is not the first real estate bubble we have had “burst” and it will not be the last. It is my opinion that the government got us all into this mess and it is their obligation to get us out….NOW.

The government is constantly meddling in the real estate business. “First time home buyer tax credit” of this year was just one in a long history of our political “leaders” trying to drum up business for the real estate industry.

In 1919 The National Association of Real Estate Boards (Now NAR or National Association of Realtors) was promoting real estate via the “Own Your Own Home” campaign. This was a industry based program run by Realtors. Herbert Hoover (the then secretary of commerce) encourage the United States government to take over this program to increase home ownership. And the cycle of real estate was forever altered. Since then, it seems like the government has had a hand in real estate, trying to make it more and more affordable so “every American” can live the dream and own a home. This of course so the banking industry could stretch loans out over 30 years and rake in insane revenue on those 30 year loans!

After our country went into the “Great Depression” in the 20’s, how did the country get out of that mess? 25% of Americans were out of work and most of those jobs were construction related! Reigniting the real estate market back then was a great way to create jobs and get the economy rolling again! Talk about a “Stimulus Package” on steroids!!!

So what does America do in 2008 and 2009? We repeat what history taught us and get the real estate industry back on track, getting value back up, getting those construction workers, surveyors, roofers, plumbers, electricians, lawn service companies, painters, Realtors, lenders and everyone related to our field! WOW, what a TRILLION DOLLAR BAILOUT could do for the economy………….. except Obama flushed that toilet when he blew the trillion on HIS ego driven Stimulus package that has clearly and unequivocally FAILED the American people.

The government dug the hole. Now the CAN’T get out of the real estate game…. can they? I say YES they can…… eventually. If they eliminate the capital gains tax on real estate across the board, no matter how short of a time a person has owned the property, we would clear out of this mess sooner rather than later. Further, property taxes like we have in Florida are BULL _ _ _ _!!! Every state that has property taxes could raise the sales tax .02 per dollar and the revenue created would more than offset the income generated by the loss of property taxes. Now (in Florida for example) the tourists can pay some of that money to rebuild our roads, etc. (since they help destroy and use those roads now) This will reduce the overall cost of home ownership (total payment) by 1/3 in many cases. Buyers who can’t afford to buy, now will be able to and as they buy those starter homes, everyone can move back up the food chain!

After the market gets healthy again, we can only hope that the government can stay out of the business of trying to get every American to own a home. (How did that work out for you President Clinton?). The TRUTH IS, some people will NEVER own a home and will be lifetime renters. America, there is nothing wrong with that! Everyone does not need to buy or own a home for America to be great! We just need responsible leadership that understands economics and how the system works. 2012 seems really far off to me, but November 2010 is just a few weeks away! I can FEEL the market recovering now!

http://www.headofrealestate.com

STOP THE LEAK…. NOW!

As a past supporter of offshore drilling, I always assumed that those in charge had a plan to stop a massive oil leak like the one in the Gulf. The reason why I supported it was because I always thought the amount of oil spilled when they hit the well was minimal. Now THIS. It’s only a matter of time before hurricane season is clicking off one named storm after another and all that oil is swished around and no telling where in the world it will end up. This certainly will be the biggest disaster to the environment short of a nuclear accident.

I was thinking last night, why don’t the build a structure the size of a small house, with legs (like the Apollo Moon Lander) and sit it on top of the pipe. On top of the structure, put a circular pipe. They could slowly weld the pipe together and section by section lower it on top of the leak. Then the will have a large tube filling with the oil as it gushes up to the surface where it can be siphoned out into barges and hauled away, 100% clean.

It would take less than 7 days to build it and the environmental damage would be stopped. Why is this not being done? Certainly all those engineers have already thought of this simple solution? DUMBASSES!

Most would not support drilling offshore if they know this could happen. I’d rather pay $5.00 a gallon and have my clean beaches for my kids to enjoy.

State Of The Union

I am going to be politically incorrect here and say something that is on my mind and go into that “political no, no zone”!  I tried to watch the The Union address a few nights ago and President Obama really got under my skin.  Somebody needs to tell him that he is already President and he needs to stop campaigning and do the job the people elected him to do.  I’m so SICK of hearing him cry about President Bush.  He wants Senate Republicans to work with him, yet every speech he reminds everyone that he “inherited” the deficit and he blames Republicans.

In all my years I have NEVER heard another Commander-in-Chief badmouth a former President.  Ronald Regan never bashed Jimmy Carter once the campaign was over. Jimmy Carter never attacked Richard Nixon and Gerald Ford once he was elected.  I hear Obama TALK about how he wants to unite the country, yet his ACTIONS will never allow the two to willingly work together.  Obama thinks that Republicans are voting against him because they are Republicans.  Has it ever occurred to Obama that they are against him because they vote for the good of the country?  The Democrats have enough power in the Senate to pass anything they want if he could get the support of his own party, but he fails to get 100% support from his own party.

Mr. Obama is a great campaigner.  Too bad campaign season is over and he now has to try and do something he has yet to do in public service.  Serve a full term without abandoning ship and running for another office (1/2 term State Senator to 1/2 term U.S. Senator to President of the USA).

America was ignorant to vote for him in the first place.  Hillary Clinton was clearly a better, more stable choice than Obama for Democrats.  But he (Obama) charmed the pants off the country with his handsome smile and elegant speeches.  The Hollywood (borderline communists) supported him and he was off to the races.

He is a disaster, he has yet to produce a birth certificate showing he is a born US Citizen, he has lied to the American people over and over.  What about the C-Span comments.  He said over and over in his campaign that “the debate on healthcare was going to be carried on C-Span network so America could see first hand who was in the pockets of the pharmaceutical companies.”  Woooooops!  Once he was elected, I guess his party told him that it was the Democrats that were to blame and suddenly, he balks at C-Span.  Guess America did not need to know?

As far as the economy.  President Bush, John McCain and other ranking Republicans warned a Democrat run Senate in 2005 that Fannie and Freddie where out of control (easy to find video on youtube).  I remember Barney Frank SCOLDING those Republicans about trying to instill fear into America and that there was nothing wrong with the system.  Also remember, it was Bill Clinton who pushed legislation into law making it EASY to get a loan. He wanted everyone to lighten the standard so all Americans could have a piece of the American dream. 

President Bush was at the wrong place at the wrong time as all of those blunders that hit did so on his watch.  I guess Obama is going to blame 911 on Bush as well.

The fact that Obama blames Bush non-stop shows that he does not really comprehend what actually happened.  He believes his own lies.  America is headed in the wrong direction.  I see Bush (W and the father) making public service commercials on TV (give money for victims of Hati, Catarina etc.) with former President Clinton. THAT to me is how it should be.  Obama gives more respect to foreign leaders that his own past commanders.  He is acting very UN-American as far as I’m concerned.

I hope our President sees his wrong path and gets America going in the right direction.  Building this high speed rail from Tampa to Orlando is a total WASTE of taxpayers money.  He racked up more of a deficit in one year than Bush did in eight years with two wars on the books.  I hope he starts to work for the people who elected him and Mr. Obama moves more to the center, as that is the wish of America.  Nobody, even those who voted for him expected him to be this liberal.

He certainly loves that plane though.  CLEARLY his favorite “perk” of the job.  Wake up America!  If we all complain, we can get our President and our country back on track!

http://www.headofrealestate.com

A Surge in Afghanistan Mr. Obama

I can’t believe it.  President Obama is “thinking” about a troop surge in Afghanistan?  He would rather see our troops die than admit that President Bush was correct by doing the same thing in Iraq.  When America was getting overrun in Iraq, Bush wanted and got a surge in the number of men sent to that country and it is a fact of record that we turned the tables and we have now or are rolling on the down side of our time there. 

Our men and women are getting killed in Afghanistan, all of our military leaders are advising the President to do the same, against the same enemy and they will get the same result.  He decided to wait a while, and this decision is killing American soldiers.  Obama is naked.  It is time for the media to report the facts.  Obama is a huge disappointment to the voters who elected him.  He spends a trillion dollars and unemployment went UP. 

He is a handsome, personable guy.  If I met him in person, I know I would love him.  But as a President?  I’d rather see McCain.  Now more than ever.  But we will need to wait 3 1/2 more years for this nightmare to end.  I say to Obama, forget the political agenda and just do what is right for America.  That is what our leader is elected to do.  Stop worrying about re-election and just do what is right for America and let the chips fall where they may.

And by the way, if you are thinking about buying real estate in Florida, go to http://www.headofrealestate.com

Exit Convention in Washington D.C.

Just got back from a week of fun and learning at the Exit Realty Convention in Washington D.C. and I am just blown away by the entire organization. From the regional owners to the trainers to the Brokers and agents to management and staff.  I spent about 18 years with ERA and went to many a convention, but never have I experienced the overwhelming SUPPORT the Exit organization gives to its membership!

I learned more in 6 days than I have in the past 6 YEARS! Exit Realty really cares about US and my move to Exit was the best decision I could have made for my family…… for my retirement!

I am just blown away by the Forbes family, by the support I get from them, all the way to the top of the food chain in Exit.  I feel part of the family, like I belong.  That is how Exit treats their agents

That was before they rolled out the red carpet for ALL of us in Washington D.C.  Steve Morris is a first class of a man and a GREAT leader and a great motivator.  I could not believe the access we all had at the convention.  The breakout sessions were the best I have ever been to and a special call out to Valerie Reyes who just blew the crowd away with her “Summit” session.

If you are burned out with the same old same old, give Exit a look!  My Team was #1 worldwide with ERA in 2008, like #4 or 5 the year before.  I was never treated like anything other than another number, another fool that paid them $30,000 to $40,000 a year in franchise fees and nobody knows your name!

Moving to Exit was the best decision I have EVER made and as I watched Steve Morris hand out a $100,000 check (like they do every year) to the lucky guy whose name was randomly pulled out of a barrel, I thought to myself, “wow, it’s nice to belong to a company that actually gives something back to the agents that made the company what it is.”

To learn more about Exit Realty, visit my website at http://www.headofrealestate.com

A Democracy or A Revolution?

Has America gone blind?

What I see is massive voter fraud. I see a media brainwashing the nation, I see the most inexperienced candidate ever to run for office about to be force fed down Americas throat!

I want a President who is elected by the people, not by groups (can you say ACORN). I see 50% of America thinking that it is O.K. and even funny that false voters are stuffing the ballot boxes. It’s funny because the guy YOU want is cheating. My McCain sign has been stolen 8 times so far. This is nationwide. Has Obama addressed any of this “cheating” going on? NO, because if favors him and his “Viva Obama” campaign. I’m not drinking his tainted Kool-Aid. What is going to happen when “Your Guy” turns out to be a Socialist? When he decided to get rid of term limits and stay in power forever? When he disarms the nation?

When you need the democracy, OUR democracy, it may not be here. I bet Cuba felt the same way before Fidel Castro was “elected” President. Take away legal gun permits for law abiding citizens? Why, so only the criminals can own guns? One vote for Obama is a GIANT LEAP BACKWARDS FOR AMERICA! I hope we (USA) wake up in time!