Heath's Blog

When I made my sixth lowball offer for one of my latest real estate investor clients, I started wondering if he actually wanted to buy anything or if he was just playing real estate investor.  I have shown him what I can prove are cash flow deals, and he lowballs to try to make the deal sweeter.  We have missed all 6 deals because of his efforts to get "the deal on a deal."

So I came up with some questions/suggestions:

1. How much cash flow do you want in a deal?  2.  When I find you a property that will cash flow that amount, are you ready to buy it?  Nothing complicated, just a deal or no deal methodology. 

I asked him how much money he'd be making if we had closed on one of the deals we missed.  And what about on all 6 of the deals he tried to sweeten?  He has gotten the idea that too much sugar in sweet tea is is just too much sugar.  It doesn't make the tea any better.

For a few years we have designated agents by the term ASR in my Falmouth real estate office.  This is a tongue in cheek description of those who Actually Sell Realestate.  There are so many that just answer the phone, or get one listing a year, or one buyer a year.

When we talk to an agent we don't know, we ask them how long they have been doing real estate.  Those we have already done deals with are automatic ASRs.  Others we work with, understanding we may have some "extra" duties.

Some non-ASRs get huffy when I ask about their experience, but it is in the sellers or buyers interest to know what their level of business experience is.  Maybe I'm alone in this perspective, but I see a lot of posts about inexperienced agents.

There was a little publicized interview on April 16, 2008 where the chief political advisor to the Prime Minister of Hamas says Hamas wants B. Husein Obama to win the US presidential election.  He says the only reason Obama is against Carter's visit to the middle east is because of the elections.  They want Jimmy Carter to meet with them against the "Israeli propaganda machine's" preferences.  His opinion is that it is "shameful" for the west to have isolated Hamas with sanctions.  He also says that the rocket attacks on Israel from Hamas in Gaza are the result of Israeli aggression. 

In answer to a question in the interview, Ahmed Yousef  says, "I understand American politics... everybody tries to sound like, be, a friend of Israel..."  He goes on to say that although a democrat is acceptable to Hamas, Obama is their preference.  Yousef is thought to be more of a policy maker than an advisor to the Prime Minister of Hamas. 

After reading and hearing his comments, I don't think he said he endorses Obama as much as he thinks Obama will be able to "lead the world" better that anyone else.  Of course, if the leader of Hamas is for you, who can be against you?

But, it takes two to work out differences, not rockets nor aggression.  I think the world economy, let alone the US, would prefer these two just get along.  Their confilct is like if the US were still fighting the Civil War.

Here is a link to the interview: http://cameron.blogs.foxnews.com/2008/04/16/a-hamas-problem-for-obama/aaron_klein_4113081/

We have had an influx of foreign buyers lately.  Some are expats returning.  (Not exPatriots fans.  People who have lived outside of the US for awhile.)  And there are some with actual European accents.

It seems that their dollars are worth more than our dollars.  Well, bring them on over here.  I can help euros get invested as much as I can help dollars get invested.  And I may get management fees, and I will probably get a listing when the dollar returns to its normal self and they don't want to spend the euros to travel here any more.

Of course we now have to wait and see how much the dollar will have to recover before the accents get back to normal.  But they can be pretty entertaining.  Our town has a local bagpiper that walks the street squeezing his pipes (theres not a really good way to describe that) and making everyone's head turn.  The US visa department has also limited the number of work visas from the southern hemisphere, so maybe kids with accents will come "work" for the summer, too.

I am feeling like the gold miner in the rudolph cartoon - Euro-ka!

Despite the Red Sox late inning wins, and the Celtics ruling the playoff courts, all the "black hat" and misogynistic politic-ing can get annoying. So I ordered a few of Joel Osteen's half hour lessons about positive thought and vision. I think the political campaigns could use a good shot of Joel.

For one, he focuses on a power that is larger than all of us. It is an encouraging, helpful, visionary power that has hope for us/me when things appear gloomy. It is a consistent, confident strength that wants me to succeed and to grow while encouraging those nearby.

He always has that little joke at the beginning that is actually funny. His examples are from the real world. He speaks of success and positive change, and especially about working out his own fears and failings, because of his understanding of something bigger than himself. He uses himself in normal examples of failure and success. His points are always upward. And his ideals are based on what he can do to make a progressive impact in a given situation.

So I say, vote for Joel and his "Precedential" campaign!  Be engouraged and be an encourager.

I am lurnen to tawk like dthe people heeyah ahn cape cahd, aftah almost twenee yeyahs.  I had an agent ask me recently, "Howmanypichyus?"  It was all run together and said so fast that I had to pause to play it back in my memory.  I asked, "What was that? I don't hear as fast as you speak." 

The response was the same, "Howmanypichyus?"  I had to confess that I didn't understand what was being said.  Then the response was as if I was the one with the poor communication skills, " How.....many......pichyahs?" 

"OOOOOooooo! Are you asking me how many pictures I have of the property?" I querried.  "Yeah" 

"Well we always put more than one in the listing, and there are more on our website if you need more."  "Oh, yeah, I dint (spelled as pronounced) see dthose.  Sahree,"  and then they hung up.

When people find out I am from Texas, living in MA, they often say, "You don't sound like you're from Texas."  And I reply, "Dat i-soh people wol unerstan whahm sayin."

....And they say people in the south are funny to listen to.

LOL

Its a beautiful day on Cape Cod!  People are all out enjoying the holiday in MA, and some are staying away from the traffic in Boston so they are on the Cape.  The marathon is being run, the Red Sox are playing again this afternoon, the Celtics won last night, and the Bruins are scheduled for tonight in Montreal!

The weather is good, the fishing is good, the beaches are coming alive, and the economy has rumblings of a new excitement.  Not far from Cape Cod, over the Bourne and Sagamore Bridges in fact, the town of Plymouth is gearing up to become "Hollywood East."  There is a citizens' advisory board, and local real estate professionals are quietly gearing up for the possibility/probablilty of new movie production facilities being developed.

The local/regional papers have all published reports and stories on the 1000 acre development, but it seems to have quietly moved forward without a lot of publicity yet.  One of the developers aparently was head of Paramount Studios for 20 years with some strong investors backing his plan, and the town of Plymouth is moving to rezone some land to provide the necessary location. 

So start researching the local towns of Plymouth, Bourne, Wareham, Carver, Rochester, Sandwich, Mashpee, and Falmouth, MA for investment possiblities.  When "Hollywood East" is ready to become more public than it already is, there will be some investment opportunities.  The 2000 proposed jobs are just the top of what could become an economic anchor for Southeastern MA.  There were 10 movies made in Massachusetts in 2007.   The complex, which would include a state-of-the-art sound stage, would cost around $300 million, and would add a new dimention to the Cape area.

Sometimes I really don't like statistics.  As an economics major in college, I learned to use statistics to make my point.  Now, when I hear statistical reports, I want to know what the variables are, if the comparrisons are apples to apples, and if there is anything I can't see that might skew the results in the favor of the reporter's opinion position.

With that in mind, here are the statistics of a comparrison between Jan to Apr 07 and 08.  (I hope it appears as clearly as it does when I type it.  If not, I'll edit it)

                                          Count  List $ Volume  Sold $ Volume  Avg List Price  Avg Sold Price  SP % LP
Total Sold / Entire MLS (08)    985     $546,957,702  $507,209,061   $555,287      $514,933   92.73
Total Sold / Entire MLS (07)   1171   $623,874,571  $585,080,254   $532,771       $499,642   93.78

These indicate that the number of listings is down, but the average list price is up.  And they indicate that the volume of sales is down, but the sale price is up.  So if I am a reporter, which ones do I report?  IF I want good news it is the up stats.  If I want bad news, the others.

The hardest news is for me:  I don't have as much to sell.  And the best news is for me: I get to make more on the average sale.  Good news, Bad News.  The stats are both up and down.

REindex.com, The Site Engine(sm) will be releasing the latest "Top 10 States Surfed" report near the end of this month.  This report shows where people are searching for real estate.  The last "Top Ten Report" was published in mid-January of 2008.  That report had some interesting indications of buyer interest in the last 1/2 of 2007.

The last report begins:  "REindex.com, The Site Engine^sm, has published the Top 10 States Surfed For Real Estate in the second half of 2007. "Big states top the list again. There are some surprises as usual," comments Heath Coker, REindex site manager (pronounced: Are-ee-Index). This list is published to assist real estate hobbyists, serious investors, and licensees. Unlike reports of sales or permit applications, this report reflects where people are searching for real estate. It indicates where the next moves may be." 

The last report can be found at http://www.reindex.com/REindexPressReleaseTop10StatesSurfedDec2007.html

Happy Selling and Listing!

I like "Late Breakfast!"  So many times in the last month I have been confronted with the difficulties of this business.  The ups and downs of prices, the disloyalties, the un-ethical practices from people who say they don't, and so on.  But today I am enjoying being a real estate professional.  I get to take time to watch my kids play sports, or give a concert.  I can take time to meet at the high school with a kid that wants mentoring.  I can go to the beach and enjoy a time walking and listening to the waves rolling.  And, I can enjoy a "late breakfast" at home after I take all the kids to school.

"Late breakfasts" are top of the list actually.  We often have "breakfast," so it isn't the food that I like but the time "having breakfast" when no teenagers are there inhibiting our boistrous exclaimations about how good the "breakfast" is!  Some say that little kids interfere with "breakfast", but I find the knowing ears of teenagers more inhibiting.  There are only so may doors to close, and they stay up so much later as teenagers which makes getting some good "breakfast" hard to schedule.   Of course, after a good "breakfast" the whole sunny day seems so much brighter for my wife, too.  She just called me to thank me for such a good "breakfast" and to tell me all the things she was already getting done after a refreshing buffet.  I told her I was available for lunch, too. 

So, when all the struggles of this unique profession start clouding your day, go have some late "breakfast" or an early "lunch."  It makes so many other things less stressful.

Happy Selling and Listing!

REindex.com, The Site Engine(sm)

By a lister. For listers. Free.