Monday Aug 31st, the CIPS Local Markets class is offered at the Mingle Institute in Charlotte, NC. Sign up has been so slow that the class may be cancelled. How many people have said, “When will this be offered here?” Where are you? This class is the pre-requisite for all of the CIPS classes.
For those people wanting to continue with the program, the Finance and Investment class is being offered in Raleigh in October. The registration on that class is small as well. Next time I am asked, “When will this be offered here?” I can just say, “Why do you care?” To sign up for the classes contact Mingle Institute in Charlotte. 704.372.0911 or Raleigh Regional Association of Realtors in Raleigh 919.654.5400. Please don’t let this last chance be a lost chance.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Thursday, August 27, 2009
Wednesday, August 19, 2009
The World is your Oyster
Think about where you would go, what you would do if you could go and do anything you wish. You can you know. Sometimes we feel limited by money, time, relationships etc. These things may be a problem. They can be planned around. I remember asking my wife. Why don’t we live is South America (she is from Colombia). She said, “if I wanted to be there, I wouldn’t be here.” As much as I would like to be in South America, I would rather be with her. That is the choice I make.
The international real estate profession is the key to the world. I know that I can do this anywhere. I just have to be more willing to be away from the familiar. In the case of most things, I could leave tomorrow. In the case of my wife, I’ll stay here. The best thing about real estate is that in addition to being able to do it anywhere, it can also be done nowhere. No location is required. A homeless person could do it with a laptop and a cellphone. They might could go to Starbucks and use Skype.
What are the choices you will make?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
The international real estate profession is the key to the world. I know that I can do this anywhere. I just have to be more willing to be away from the familiar. In the case of most things, I could leave tomorrow. In the case of my wife, I’ll stay here. The best thing about real estate is that in addition to being able to do it anywhere, it can also be done nowhere. No location is required. A homeless person could do it with a laptop and a cellphone. They might could go to Starbucks and use Skype.
What are the choices you will make?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Monday, August 17, 2009
Financial Tools for the Valuation of Real Estate
This book is published by Bienes Raices Ediciones and is available on their website at http://www.brediciones.com . The Author’s name is Mario Gomez. The book has many of the classic tools used by brokers and appraiser to put a value on property. The standard market, cost, and income approach methods are discussed. The fact that the book is written from an Argentine perspective gives a lot of extra insight.
Argentina has frequent ups and downs in the economy and in real estate prices. For that reason the approaches taken in this book are especially valuable for those of us who are currently experiencing a serious decline in values for the 1st time. The book also deals with risk analysis that few appraisal books in the USA include. There are multiple formulas for adjusting risk and yield concerns.
There is a section on special use properties such as post offices, dormitories and buildings that may be difficult to price. The book concludes with some really great case studies using the tools. I also recommend this book for anyone who has to teach or translate in Latin countries as it has terms commonly used to describe things that we find hard to translate.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Argentina has frequent ups and downs in the economy and in real estate prices. For that reason the approaches taken in this book are especially valuable for those of us who are currently experiencing a serious decline in values for the 1st time. The book also deals with risk analysis that few appraisal books in the USA include. There are multiple formulas for adjusting risk and yield concerns.
There is a section on special use properties such as post offices, dormitories and buildings that may be difficult to price. The book concludes with some really great case studies using the tools. I also recommend this book for anyone who has to teach or translate in Latin countries as it has terms commonly used to describe things that we find hard to translate.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Thursday, August 13, 2009
Turning Your Real Estate into a Retirement Plan
Many people have real estate in their self directed retirement plans. This has benefits as well as disadvantages. The benefit is that one can use retirement savings to purchase properties. The downside is that the tax advantage do not go onto your personal tax return. Regardless of how the title to the property is held, owning residential real estate for rental purposes is a job. That is not retirement.
There are two great ways to turn this property into a reasonably trouble free retirement income. The first is to sell the property with seller financing and have the mortgage income. A mortgage doesn’t require painting or repairs. If the tenants in the property are really good they are the best prospects. The second way is to sell the property with a 1031 exchange and buy net leased properties with credit tenants. This is the best approach in many ways because there is little chance that a lease, unlike a mortgage, will be paid off early.
Either one of the methods allows for the payment of taxes as the funds are received. The net leased property actually shelters some of the income. If the property is in a retirement account, a certain amount will need to be drawn down every year anyway after the beneficiary reaches a certain age.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
There are two great ways to turn this property into a reasonably trouble free retirement income. The first is to sell the property with seller financing and have the mortgage income. A mortgage doesn’t require painting or repairs. If the tenants in the property are really good they are the best prospects. The second way is to sell the property with a 1031 exchange and buy net leased properties with credit tenants. This is the best approach in many ways because there is little chance that a lease, unlike a mortgage, will be paid off early.
Either one of the methods allows for the payment of taxes as the funds are received. The net leased property actually shelters some of the income. If the property is in a retirement account, a certain amount will need to be drawn down every year anyway after the beneficiary reaches a certain age.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Tuesday, August 11, 2009
I Believe
Finally the government says the economy is improving. I believe them. My economy is improving. Faith is what counts. If we all believe it is getting better, it will. The “cash for clunkers” program, dumped a billion dollars into a primary sector of the economy in one week. It will dump another 2 billion. I bet that will hit fast as well. This program was an act of sheer genius.
The $8000 tax credit for 1st time home buyers was helpful as well. It is really limited though. We should have a “cash for shacks” program to get rid of some of the junky houses that were built and sold in the recent building frenzy. Many of these homes are built so poorly that they will never be worth what they originally sold for. If they could be taken out of the current inventory some of the strain on the market would be relieved. There are also a lot of homes on the market that are really inefficient. Many of them are rentals.
With property taxes high and rents low, landlords cannot afford to make the needed improvements. If we made the homes more efficient, the tenants could afford to pay more rent. A tax credit or better still a property tax holiday for landlords who improved the energy efficiency of their homes would stimulate the construction business as well as the real estate business.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
The $8000 tax credit for 1st time home buyers was helpful as well. It is really limited though. We should have a “cash for shacks” program to get rid of some of the junky houses that were built and sold in the recent building frenzy. Many of these homes are built so poorly that they will never be worth what they originally sold for. If they could be taken out of the current inventory some of the strain on the market would be relieved. There are also a lot of homes on the market that are really inefficient. Many of them are rentals.
With property taxes high and rents low, landlords cannot afford to make the needed improvements. If we made the homes more efficient, the tenants could afford to pay more rent. A tax credit or better still a property tax holiday for landlords who improved the energy efficiency of their homes would stimulate the construction business as well as the real estate business.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Thursday, August 6, 2009
Time to Grow
For many of us, this may be some of the most difficult times we have ever seen in the Real Estate Business. Many of our colleagues have given up and taken a job in some other industry. According to a recent article by Dr. Lawrence Yun in REALTOR magazine over 50 % of the home sales are foreclosures. I have always been a positive person; but lately I have entertained dark thoughts. This morning I woke up with a new perspective.
My mission statement has been revisited. For a while it seemed maybe it needed revision or something. It is still relevant. It may even be more relevant than before. “I specialize in the acquisition, disposition and management of income producing properties.” The management side of this is more critical than ever before. Cash flow conditions are making profitable residential investment almost impossible. The situation is further exacerbated by the difficulty of finding suitable tenants. A lot of people have lost their homes; but will these people make good tenants.
The first reaction to this is NO WAY! These people have bad credit. On second thought, many of them are used to living in and taking care of a home that they considered their own. They are used to dealing with minor issues and landscaping. They are used to taking pride in their dwelling. How many of them were put into their position by circumstances beyond their own control?
If some of the investors who are buying the foreclosed homes at reduced prices are willing to take the chance on well screened people who have had temporary difficulties they may find good tenants. Many of these people will be homeowners again in the future. Lease purchase is probably not the best way to go; but a combination tenancy and credit repair program, could make homeowners of many of these people within a few years. This could easily be the fastest way to rebuild damaged neighborhoods.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
My mission statement has been revisited. For a while it seemed maybe it needed revision or something. It is still relevant. It may even be more relevant than before. “I specialize in the acquisition, disposition and management of income producing properties.” The management side of this is more critical than ever before. Cash flow conditions are making profitable residential investment almost impossible. The situation is further exacerbated by the difficulty of finding suitable tenants. A lot of people have lost their homes; but will these people make good tenants.
The first reaction to this is NO WAY! These people have bad credit. On second thought, many of them are used to living in and taking care of a home that they considered their own. They are used to dealing with minor issues and landscaping. They are used to taking pride in their dwelling. How many of them were put into their position by circumstances beyond their own control?
If some of the investors who are buying the foreclosed homes at reduced prices are willing to take the chance on well screened people who have had temporary difficulties they may find good tenants. Many of these people will be homeowners again in the future. Lease purchase is probably not the best way to go; but a combination tenancy and credit repair program, could make homeowners of many of these people within a few years. This could easily be the fastest way to rebuild damaged neighborhoods.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Wednesday, August 5, 2009
Oh! Oh! Mexico!
If there is opportunity anywhere, it has to be in Mexico. The Mexican economy is reeling from the triple punch of the world economic crisis, the swine flu and the drug wars. None of these things are permanent issues. The world economic crisis is either starting to end or it is having a “dead cat bounce”. The drug wars are not over; but the rest of the world and especially the USA cannot allow the Mexican government to lose.
The rest of the world is just starting to cough from the swine flu. Mexico has borne the brunt of it already. Tourism is starting a very slow rebound. Most of this is from bargain hunting vacationers. The oil market is still pretty weak and Mexican GDP is actually predicted to be a negative 7.1% this year according to the economist. http://www.economist.com/COUNTRIES/Mexico/profile.cfm?folder=Profile-Economic%20Data . This has got to be the time to watch if not the time to buy.
There is the possibility of a little more downside in Mexico. It depends on whether you believe the world economy has begun to recover or is just doing a “dead cat bounce”. Is this the beginning of the end or the end of the beginning? I want to believe the end of the beginning is near.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
The rest of the world is just starting to cough from the swine flu. Mexico has borne the brunt of it already. Tourism is starting a very slow rebound. Most of this is from bargain hunting vacationers. The oil market is still pretty weak and Mexican GDP is actually predicted to be a negative 7.1% this year according to the economist. http://www.economist.com/COUNTRIES/Mexico/profile.cfm?folder=Profile-Economic%20Data . This has got to be the time to watch if not the time to buy.
There is the possibility of a little more downside in Mexico. It depends on whether you believe the world economy has begun to recover or is just doing a “dead cat bounce”. Is this the beginning of the end or the end of the beginning? I want to believe the end of the beginning is near.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Tuesday, August 4, 2009
Properties that Should not be Sold
How far back should a chain of title go? Who really owns the property. There is an issue in Patagonia with a tribe of indigenous people who say the land was stolen from them. The argument against this is that they stole it from another indigenous group. The entire region was an encomienda to the Sotomayor family from the Spanish Crown. Much of this property has been sold 3 or 4 times since then. Who owns it now?
This is the kind of battle that makes title insurance a good idea. What about some more modern examples where title insurance is probably not available? Who will own the property abandoned by fleeing Cubans, when Castro came to power? The Turkish government is giving deeds to abandoned property in the Turkish part of Cyprus. The European Union is already hearing cases on this.
Will the real estate brokers participating in these transactions be held liable? That is not one of the things we normally think about. It may be possible that commissions will have to be refunded as a part of the settlement, especially in cases where the agent represents the buyer. A recent property show refused to allow participation of properties in the Turkish part of Cyprus; because they were afraid of these issues. Will the buyers of these properties find themselves standing when the music stops in the game of musical chairs? Has the music already stopped?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
This is the kind of battle that makes title insurance a good idea. What about some more modern examples where title insurance is probably not available? Who will own the property abandoned by fleeing Cubans, when Castro came to power? The Turkish government is giving deeds to abandoned property in the Turkish part of Cyprus. The European Union is already hearing cases on this.
Will the real estate brokers participating in these transactions be held liable? That is not one of the things we normally think about. It may be possible that commissions will have to be refunded as a part of the settlement, especially in cases where the agent represents the buyer. A recent property show refused to allow participation of properties in the Turkish part of Cyprus; because they were afraid of these issues. Will the buyers of these properties find themselves standing when the music stops in the game of musical chairs? Has the music already stopped?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
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