Monthly Archives: September 2007

What Has Changed With The Rate Cut, Long Beach

Posted on by
Reply
Discuss on ooVoo

According to Seeking Alpha, nothing much:

“List of What Hasn’t Changed

– Mortgage Rates. (Actually mortgage rates rose since last week as the chart below shows).
- Auto Loan Rates. Nearly identical to last week.
- Home Equity Loan Rates. Nearly identical to last week.
- The outlook for jobs. (If anything the outlook is weaker judging from the Fed’s panic).
- Credit Card Interest Rates.
- The foreclosures outlook did not change. It is still bleak.”

The above chart is from 2007-09-19 with thanks to Bankrate.Com

Yoou can add to that, oil price rose…

“Bernanke’s Bullet Misses The Mark

So did that 50 basis point cut help anyone? Yes, it helped (temporarily) those in the stock market. It helped (again temporarily) bail out Bernanke’s banking buddies by providing more short term liquidity. It helped those short the dollar and long gold.

But did it do anything to address cash strapped consumers in way over their heads in houses they cannot afford? The answer to that is no.”

In other words, are those already indebted saved? Have mortgage rates gone down? Are people borrowing more? Are people flocking to buy real estate again? It might be too soon to say but nothing has changed for the consumer. On the flip side, Wall Street is happier in the meantime.

No comment.

State Coastal Commission Says No to Home Depot Developer, Long Beach

Posted on by
Reply
Discuss on ooVoo

According to an article on the Press Telegram, the State Coastal Commission has recommended a denial for the building of a Home Depot on the East side of Long Beach.

This could be a blow for Tom Dean of Studebaker LB, LLC, the Home Depot developer unless the city ignores the report’s conclusions during its Oct. 10 meeting in San Pedro. The City Council approved the project in October 2006, despite strong protests from residents and environmentalists. Besides obvious environmental problems in this already taxed area of Long Beach, the traffic concern has also not been met. The already heavy traffic congestion on 2nd Street and PCH would rise to higher levels. The project proposed a redo of the Naples median. You would then wait for hours with pretty flowers on the side… but nothing serious has been brought to the table to stop the ever increasing traffic.

Let’s see if the city listens to the report or continues to ignore it’s residents, environmental and now State agency serious concerns.

Aquarium Forum On Climate Change in Long Beach

Posted on by
1
Discuss on ooVoo

RSVPs are requested for the Aquarium Forum On Climate Change.

The Aquarium of the Pacific is hosting a community forum on efforts to reduce Long BeachÂ’s impact on global climate change. Mayor Bob Foster and incoming City Manager Patrick West are scheduled to attend. The free event is scheduled for 7-8 p.m. on October 4 at the Aquarium of the Pacific, 100 Aquarium Way; however, interested persons must RSVP by 5 p.m. on September 27. Call 562/590-3100.

Headaches, Sneezing, Scratchy Throats and More in Long Beach

Posted on by
Reply
Discuss on ooVoo

Has anyone been sneezing more than usual, having headaches? Those of you who suffer from migraines, have they gotten worse lately, say the last two weeks? It sure seems like it according to my surrounding.

So what gives? We all know that Long Beach has some of the worst polluted air and water in California. With the fifth largest harbor and cement factory in the paths of blowing winds, add to this our city is surrounded with highways and it doesn’t stretch the imagination that we suffer from pollution here. What is intriguing about these last two weeks is that almost everybody around me (85%) have been suffering from headaches, sneezing, headaches, etc, more so than usual.

Sure, we can blame it on allergies, even for those like me who have never suffered from them. We lived in NYC but were never effected from the smog there.

Could it also have anything to do with China? I know it is fashionable to blame China for everything lately, but the weather report has been tracking this ugly pollution cloud coming from China. Could this add to our already polluted enviroment? Most likely yes.

I can’t seem to find the articles I saw a few weeks back about a yellow cloud coming over from China, no puns intended, filled with pollutants. A quick Google search will bring you to many scientific websites showing how they have been tracking pollutants from China, mostly, coming across the Pacific, carried by dust clouds and finally giving acid rains, right here in our backyards.

Not All Bad News In Real Estate, Long Beach

Posted on by
Reply
Discuss on ooVoo

That is, depending on what you are doing with real estate.

Pretty much by now, the old notion that you can never go wrong with owning real estate is reviewed to mean, if you wait long enough. In other words, flippers who jumped in late into the game are losing out as are the ones who over-estimated their financial powers.

None the less, I have found one good that is relates to real estate, and I savor this bit of info because we have far too little of it nowadays. According to ETF trends:

“Although new home construction is at an all-time low, the same can’t be said for commercial building construction and the exchange traded fund (ETF) that follows the sector.”

If you invest at the right time and follow a strict discipline and forgo your hunches, you can do pretty well in a downturn market.

Disclaimer, Virginia, my wife works for ETF Trends. I get the news like everyone else, through their newsletter.

1927 Cadillac Limo in Long Beach

Posted on by
Reply
Discuss on ooVoo

Wow, what a day Friday was. Not only was it filled with synchronistic events, a girl in my building is looking for a Reiki master, but is thoroughly interested in “metaphysics”, gotta love that terms and works in the music industry, being close buddy with Billy Corgan. And call me old fashion and weird, but I still love the Smahsing Pumpkins…

None the less, the other event was a beautiful, unrestored, 1927 Cadillac Limo that pulls in right in front of our office. After sniffing around the old lady long enough, the owner comes out to take me out of my misery to open the treasure cove. And my, Oh my, what a treasure it was.

I don’t know if you are like me but most old cars are way over-restored. I don’t get it and don’t like it. The appeal of an old car is it’s smell, it’s feel, it’s patina, which cannot be replicated with modern paints and smells. This car was original!!! The design work was stunning. It even had its own original flask hidden in the passenger compartment. The sliding window between the cab and passenger side worked, as well as the intercom. The wood was in a great condition but the sound of that flat head V8 is unbeatable.

After much lusting and excitement on my part (those who know me, know how excited I get about such things), the owner took pity on me and took me for a drive around the block.

Ah, sweet music. Double clutching through Park Estate, this engine was smooth and torque full. There is something the newer generations will never know how to do, for good or bad, double clutching on a non-synchronized gear box.

The car drove so well, it was smooth. The only sad part was getting out and looking around me, I was surrounded with modern, bland, faceless, run of the mill modern cars. then I quickly got into my Alfa Romeo and felt better.

Hum, hum, what a day indeed…

Cut Rates, And Then What? Part Three and Lastly, Long Beach

Posted on by
Reply
Discuss on ooVoo

Just to make the very, very last point, well, maybe two points.

Cutting rates won’t help real estate and mostly, it still shows you can throw any news in the air, show it as a hint of relief and most people believe it.

Case in point, for those of you who think with “lower rates” you can renegotiatie your mortgage, think again. For one thing, long term rates are up.

Here is a good post from Seeking Alpha’s, Chad Brand.

Meanwhile, back in Long Beach, prices have finally come down which means we can start to pick up the pace.

Cut Rates, And Then What? Part two, Long Beach

Posted on by
Reply
Discuss on ooVoo

I guess I’m not the only one wondering what cut rates will do to help the economy.

I don’t see how it helps our economy, unless the Fed are trying to lure people into a false sense of security, making them borrow, facing the obvious fact that the dollar is losing more and more to foreign currency and then in a few months, steadily bring up the rates in order to make our currency competitive again? Isn’t on par with the Cancadian Dollar at this moment? This also means the government will have to step in and help people sooner or later and of course, borrow more money from the Fed? Or are they trying to push us to invest globally, something we are not good at doing? The last one would be a good thing in itself.

Another negative aspect of cutting rates are, oil prices are sky rocketing again. Weaker dollar means more to buy the same amount.

Frankly said, it makes you wonder where the Federal Reserve, which by the way has only “federal” its name, is pushing the country into.

Business Plans and Contingencies, Long Beach

Posted on by
Reply
Discuss on ooVoo

A lot of real estate companies and other related industries, are seriously hurting. In this downturn market it is normal to see some casualties but a little prevention can help.

What I realized by talking to business owners was that more than two third of them didn’t have a working business plan and almost none had any contingencies. I know hindsight is 20/20 but understanding times are not always rosy and money doesn’t always come gushing in is an essential aspect of conducting business.

The point of a good business plan is to help you sort out your goals. After drawing a good plan, you should have a better idea of what it is you would like to do, then be able to set some measurable, working goals.

Two aspects that are hard to set with any business plans are measured achievements and market study. Measured achievements more or less depend on a successful market analysis and where you would like to see your business in the future. Knowing and understanding your market is key to success but not fully working in it makes it hard to understand the ins and outs and thus effectively creating an accurate vision. One thing to do is to interview professionals in the field. Talk to as many people as you can and find out how they started, what they encounter on a daily basis and any problems or obstacles they had to go through. Understand the market and the competition.

My biggest pet peeve is advertising. Advertising can make or break your business. The obvious, but expensive way is to advertise in newspapers and magazines. The other is word of mouth. It depends on your finances and how long are you willing to wait for your business to grow. Advertising is an easy way to get people to come to you. On the flip side, you will get good clients and bad clients. You will also have to prove yourself more than someone who was referred to you. I’ve always done word of mouth because I rely mostly on clients referring me. I do the same when it comes to choosing a professional. I rarely get caught by advertisings. Words are easy but reputation is built over time. That’s why you don’t see my real estate signs with endearing dogs on it ;) I love dogs, by the way.

Lastly, the one thing troubled businesses have in common is a lack of contingency planning. What do you do if you are not making ends meet? What do you cut back on? What do you redefine? What’s your backup plan? Almost all real estate offices rely on desk space fees. Agents pay $300 and more in order to have a desk at an office. Most of the fees cover telephone and fax uses, Internet, some marketing, etc. The problem is in a market where little sells, Realtors have a harder time paying those fees. Businesses soon find themselves going from 150 paying Realtors to 75 and less, thus making rent and staying solvent harder. That’s why many businesses have closed their doors. All of this could be avoided with a little strategic planning and a well thought of business plan.

You need to clearly think through your business plan. A business plan is a living entity. It might change but should have clear guidelines as to where you would like to go. You also need to have a contingency plan if things don’t work out the way they are supposed to do. I help Realtors establish their goals and visions by coaching them. Contact me if you have any questions.

Sweets with the Hathaway Sisters At The Rancho’s Living History Program, Long Beach

Posted on by
Reply
Discuss on ooVoo

Ooooh, what to do tomorrow…

How about Sweets with the Hathaway Sisters 10 a.m.; $10 ($8 for members); reservations required

If you missed the formal “Tea with the Hathaway Sisters” during the week but wanted to meet these hardy pioneer women, join them for a cup of coffee and “Sweets with the Hathaway Sisters” on Saturday morning….

The Hathaway and Bixby families were tightly intertwined in the 19th century, with four of the five Hathaway sisters marrying into the family. Mary, Margaret, Susan and Martha all ended up living in the Los Angeles/Long Beach area and played important roles in building the community. Travel back in time as they recount their experiences, describe their roles, and share their challenges as pioneering women living in 19th century Southern California. Step back in time to the isolation of the ranches, the birth of Long Beach, the trials of raising and losing children, and the importance of family. Enjoy “living history” with your morning coffee and a sweet pastry. The Hathaway sisters will be portrayed by Linda Midgett, Margie Newell, Kim Bemowski and Dana Ferrarelli, members of the Rancho’s Living History Program.

Cost is $10 ($8 for members of Friends of RLC), and reservations are required by September 18. To reserve a seat, pick up a flier at the Rancho or a local library, or call the Rancho at (562) 570-1755.