Article by Kent Hoover, March 26, 2010 in Portfolo.com
Below is an excerpt from Kent’s article for your information and use.
“Under this program, mortgage servicers would be required to reduce mortgage payments for unemployed individuals to no more than 31 percent of their income for a period of three to six months.
This would help these individuals stay in their homes while they look for a job. If they still don’t have a job at the end of six months, they can work with lenders on a permanent mortgage modification or other alternatives to foreclosure. If they find a job, they’ll resume making their regular payment, and overtime pay back the break they got while they were unemployed.
The other new initiatives are more troubling. Mortgage servicers will be required to consider writing down the principal on loans in cases where borrowers owe more than 115 percent of the current value of their home. The government will provide incentives to servicers to do this, as part of its Home Affordable Modification Program.
So far only 200,000 permanent mortgage modifications have been made through the HAMP program, although 1.1 million borrowers have begun trial modifications. The program was designed to help up to 4 million homeowners.
In addition, the Federal Home Administration will use $14 billion of TARP money to allow homeowners who are underwater on their mortgages to refinance through an FHA loan. To qualify, homeowners must be current on their mortgages and meet FHA underwriting guidelines. Lenders or the investors who bought the mortgage will have to agree to write down the unpaid principal balance of the mortgage by at least 10 percent.”
Wednesday, March 31, 2010
Tuesday, March 30, 2010
Great Time to Be a First-Timer
You know of some who would like to stop renting, and you certainly see a home in your future for someone - if not you! But is now the right time to make that big move?
Absolutely! The $8,000 first-time homebuyer tax credit is available to buyers who contract a home by April 30, 2010 and close by June 30, 2010. The amount will come as a refund when you file your 2010 tax return.
While the tax credit may be the most obvious reason for first-timers to buy now, there are many other good reasons to purchase a home. Pass this information along to the first timers:
• Homeownership allows you to improve your lifestyle, enhance your credit, and save for your future. Your home is your property, and you don’t need ask permission or pay fees to paint, make upgrades or have a pet.
• Today’s buyers market offers great homes, town homes and condos at very affordable prices. Selection has never been better.
• As the economy begins to improve, rental rates will increase. You’ll never get back the investment you make in rent.
• Interest rates are low, and one of the biggest factors that influence your monthly payment.
• Mortgage interest and property taxes are tax deductible each year.
This is a perfect storm for a buying a home. If not you, perhaps you know someone that should consider buying a home for the first time. Also remember, repeat buyers may be eligible for the $6,500 federal tax credit. Not a bad deal to start with!
Absolutely! The $8,000 first-time homebuyer tax credit is available to buyers who contract a home by April 30, 2010 and close by June 30, 2010. The amount will come as a refund when you file your 2010 tax return.
While the tax credit may be the most obvious reason for first-timers to buy now, there are many other good reasons to purchase a home. Pass this information along to the first timers:
• Homeownership allows you to improve your lifestyle, enhance your credit, and save for your future. Your home is your property, and you don’t need ask permission or pay fees to paint, make upgrades or have a pet.
• Today’s buyers market offers great homes, town homes and condos at very affordable prices. Selection has never been better.
• As the economy begins to improve, rental rates will increase. You’ll never get back the investment you make in rent.
• Interest rates are low, and one of the biggest factors that influence your monthly payment.
• Mortgage interest and property taxes are tax deductible each year.
This is a perfect storm for a buying a home. If not you, perhaps you know someone that should consider buying a home for the first time. Also remember, repeat buyers may be eligible for the $6,500 federal tax credit. Not a bad deal to start with!
Monday, March 29, 2010
Attorney's Advice on Credit Cards
I am passing along this advice for your consideration sent to me in an email.
Even If you dislike attorneys. You will love them for these tips.
Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:
1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.
4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel.. Keep the photocopy in a safe place.
I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards..
Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.
But here's some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
6.. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all: (I never even thought to do this.)
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number.. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.
The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit..
By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks..
Now, here are the numbers you always need to contact about your wallet, if it has been stolen:
1.) Equifax: 1-800-525-6285 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742 1-888-397-3742
3.) Trans Union : 1-800-680 7289 1-800-680 7289
4.) Social Security Administration (fraud line): 1-800-269-0271 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything. If you are willing to pass this information along, it could really help someone that you care about.
Even If you dislike attorneys. You will love them for these tips.
Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:
1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.
4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel.. Keep the photocopy in a safe place.
I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards..
Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.
But here's some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
6.. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all: (I never even thought to do this.)
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number.. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.
The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit..
By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks..
Now, here are the numbers you always need to contact about your wallet, if it has been stolen:
1.) Equifax: 1-800-525-6285 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742 1-888-397-3742
3.) Trans Union : 1-800-680 7289 1-800-680 7289
4.) Social Security Administration (fraud line): 1-800-269-0271 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything. If you are willing to pass this information along, it could really help someone that you care about.
Friday, March 26, 2010
Last Post in Series on Eminent Domain
Eminent Domain Abuses
Read this article about the 60 Minutes show in 2004 about eminent domain abuses by government.
http://bit.ly/YdiJ1
The Institute for justice in October 7, 2009 cited a report on NY State eminent domain abuses.
http://bit.ly/3s1euE
There are groups formed in various states acting as watch dogs for eminent domain actions by state and local government. Why have I devoted a week to eminent domain? Eminent domain abuses have been going on for a long time and in my opinion will start to become more and more of a problem.
In 2003, I was involved in an eminent domain action hired as an expert by the property owner. The local government classified the property as “blighted” and was proceeding with eminent domain proceedings if the land owner refused to sell. The local government wanted a grocery store on the property – it wasn’t zoned for that use and the property owner was proceeding with a “use by right” project. By the way, the property was vacant and still called blighted! In the end, the property owner sold the property to local government so they could partner with a grocery store chain.
Remember, it is all in the land. I believe we will see more and more eminent domain abuses because local and state governments have to generate new revenue from commercial, retail, industrial and business uses. Residential does not have a positive impact on local government budgets. Local governments have been and will continue to compete for revenue producing uses, uses that generate jobs, and uses that are sustainable. Government will use eminent domain to control and guide development patterns at the expense of the private property owner. In essence, government will eventually become the developer! Outside of the box thinking is not far off! Remember – it is all in the land.
Read this article about the 60 Minutes show in 2004 about eminent domain abuses by government.
http://bit.ly/YdiJ1
The Institute for justice in October 7, 2009 cited a report on NY State eminent domain abuses.
http://bit.ly/3s1euE
There are groups formed in various states acting as watch dogs for eminent domain actions by state and local government. Why have I devoted a week to eminent domain? Eminent domain abuses have been going on for a long time and in my opinion will start to become more and more of a problem.
In 2003, I was involved in an eminent domain action hired as an expert by the property owner. The local government classified the property as “blighted” and was proceeding with eminent domain proceedings if the land owner refused to sell. The local government wanted a grocery store on the property – it wasn’t zoned for that use and the property owner was proceeding with a “use by right” project. By the way, the property was vacant and still called blighted! In the end, the property owner sold the property to local government so they could partner with a grocery store chain.
Remember, it is all in the land. I believe we will see more and more eminent domain abuses because local and state governments have to generate new revenue from commercial, retail, industrial and business uses. Residential does not have a positive impact on local government budgets. Local governments have been and will continue to compete for revenue producing uses, uses that generate jobs, and uses that are sustainable. Government will use eminent domain to control and guide development patterns at the expense of the private property owner. In essence, government will eventually become the developer! Outside of the box thinking is not far off! Remember – it is all in the land.
Thursday, March 25, 2010
Fair Market Value & Just Compensation
In real estate transactions, there are sellers and able and willing buyers in which a price, terms, and conditions are negotiated. If either party is unwilling to compromise and reach a reasonable conclusion for both parties, the real estate process would be terminated.
In terms of eminent domain, there is a buyer (government) and perhaps not a willing seller. The fair market value of the property in question has to be established. This value is typically established by a current property appraisal and guided by local laws. In most instances, the government entity may have to obtain three separate appraisals to set the fair market value for the property.
If the seller does not except the appraised value and price offered, both parties may proceed through legal proceedings. Both parties would have their appraisers as expert witnesses offering testimony for the record.
Just Compensation
The fair market value of the property may be more than the appraised value of the property. Many think of eminent domain as the taking of vacant land but in most cases, buildings, businesses and homes are the focus of an eminent domain proceeding. Not only should the just compensation include the value of the land and structures but the value of the business. And the use of the land to be taken by eminent domain may have additional impact on the value on the remaining property. Just compensation should include the value of the remaining property, retained by the owner, but impacted by the project.
Public Use
Government has always used eminent domain for projects and/or improvements associated for “public use". This approach has expanded to include protecting the health, safety, welfare and “convenience”. Typical government improvements include road, water, and sewer projects. Now government is seeking to redevelop property for new uses – public and private. Property has now been classified as “blighted” by government to justify redevelopment efforts by government.
In terms of eminent domain, there is a buyer (government) and perhaps not a willing seller. The fair market value of the property in question has to be established. This value is typically established by a current property appraisal and guided by local laws. In most instances, the government entity may have to obtain three separate appraisals to set the fair market value for the property.
If the seller does not except the appraised value and price offered, both parties may proceed through legal proceedings. Both parties would have their appraisers as expert witnesses offering testimony for the record.
Just Compensation
The fair market value of the property may be more than the appraised value of the property. Many think of eminent domain as the taking of vacant land but in most cases, buildings, businesses and homes are the focus of an eminent domain proceeding. Not only should the just compensation include the value of the land and structures but the value of the business. And the use of the land to be taken by eminent domain may have additional impact on the value on the remaining property. Just compensation should include the value of the remaining property, retained by the owner, but impacted by the project.
Public Use
Government has always used eminent domain for projects and/or improvements associated for “public use". This approach has expanded to include protecting the health, safety, welfare and “convenience”. Typical government improvements include road, water, and sewer projects. Now government is seeking to redevelop property for new uses – public and private. Property has now been classified as “blighted” by government to justify redevelopment efforts by government.
Wednesday, March 24, 2010
Eminent Domain – Process to Acquire Land
Check your State and Local laws for procedures in your area. However, the basics remain the same:
1. Once government decides to “acquire” land for the benefit of the public good, they will attempt to negotiate with the property owner to purchase the property at the fair market value.
2. If by chance the property owner does not want to sell, the government will file a court action seeking to initiate eminent domain proceedings against the property owner.
3. After proper notification, the property owner must appear at hearing where the government will outline their need for the taking of the property, present their good faith efforts to negotiate with the property owner, and the property owner is provided the opportunity to present their case.
4. A successful ruling for government requires the fair market value to be established. Government obtains title for the property. If either party is not satisfied with the outcome of the proceedings, they may appeal the decision.
5. Through eminent domain, government may seek to obtain property for their use in the following circumstances:
A complete taking of the property
Only a portion of the property is taken – partial taking
A temporary taking of property to allow government to complete the project but the property owner retains title and possession of that portion of the property
Obtaining an easement or right-of-way for utility line construction
1. Once government decides to “acquire” land for the benefit of the public good, they will attempt to negotiate with the property owner to purchase the property at the fair market value.
2. If by chance the property owner does not want to sell, the government will file a court action seeking to initiate eminent domain proceedings against the property owner.
3. After proper notification, the property owner must appear at hearing where the government will outline their need for the taking of the property, present their good faith efforts to negotiate with the property owner, and the property owner is provided the opportunity to present their case.
4. A successful ruling for government requires the fair market value to be established. Government obtains title for the property. If either party is not satisfied with the outcome of the proceedings, they may appeal the decision.
5. Through eminent domain, government may seek to obtain property for their use in the following circumstances:
A complete taking of the property
Only a portion of the property is taken – partial taking
A temporary taking of property to allow government to complete the project but the property owner retains title and possession of that portion of the property
Obtaining an easement or right-of-way for utility line construction
Tuesday, March 23, 2010
Definition of Eminent Domain & Blighted
Source for the following definition: http://www.legal-explanations.com
Definitioin of Eminent Domain:
“n. the power of a governmental entity (federal, state, county or city government, school district, hospital district or other agencies) to take private real estate for public use, with or without the permission of the owner”
Source for the following – http://www.thefreedictionary.com/
blight (bl t)
n.
1.
a. Any of numerous plant diseases resulting in sudden conspicuous wilting and dying of affected parts, especially young, growing tissues.
b. The condition or causative agent, such as a bacterium, fungus, or virus, that results in blight.
2. An extremely adverse environmental condition, such as air pollution.
3. Something that impairs growth, withers hopes and ambitions, or impedes progress and prosperity.
Source for the following: http://www.columbia.edu/ New Rochelle Studio
The term "blighted area" for purposes of urban renewal condemnation, encompasses areas in process of deterioration or threatened with it as well as one already rendered useless and may include vacant land and air rights.
Definitioin of Eminent Domain:
“n. the power of a governmental entity (federal, state, county or city government, school district, hospital district or other agencies) to take private real estate for public use, with or without the permission of the owner”
Source for the following – http://www.thefreedictionary.com/
blight (bl t)
n.
1.
a. Any of numerous plant diseases resulting in sudden conspicuous wilting and dying of affected parts, especially young, growing tissues.
b. The condition or causative agent, such as a bacterium, fungus, or virus, that results in blight.
2. An extremely adverse environmental condition, such as air pollution.
3. Something that impairs growth, withers hopes and ambitions, or impedes progress and prosperity.
Source for the following: http://www.columbia.edu/ New Rochelle Studio
The term "blighted area" for purposes of urban renewal condemnation, encompasses areas in process of deterioration or threatened with it as well as one already rendered useless and may include vacant land and air rights.
Monday, March 22, 2010
Fifth Amendment to the US Constitution
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation
Source for the following: http://www.emdo.blogspot.com by Roger Kolb 2/3/05 with discussions with Jim Campano.
In 1954, "in the Supreme Court decision Berman vs. Parker." A Pandora's box was opened, one that our founding fathers would have abhorred, he continued, "when the court changed one little word in its definition of "eminent domain." It changed the phrase "public use" to "public purpose."
And a few years after that, "public purpose" became "public benefit." "Public benefit" has meant that a local government can take property away from one private home or business owner and give it to another."
Source for the following: Wikipedia, the free encyclopedia that anyone can edit.
The federal courts have not restrained state and local governments from seizing privately owned land for private commercial development on behalf of private developers. This was upheld on June 23, 2005, when the Supreme Court issued its opinion in Kelo v. City of New London.
Source for the following: http://www.emdo.blogspot.com by Roger Kolb 2/3/05 with discussions with Jim Campano.
In 1954, "in the Supreme Court decision Berman vs. Parker." A Pandora's box was opened, one that our founding fathers would have abhorred, he continued, "when the court changed one little word in its definition of "eminent domain." It changed the phrase "public use" to "public purpose."
And a few years after that, "public purpose" became "public benefit." "Public benefit" has meant that a local government can take property away from one private home or business owner and give it to another."
Source for the following: Wikipedia, the free encyclopedia that anyone can edit.
The federal courts have not restrained state and local governments from seizing privately owned land for private commercial development on behalf of private developers. This was upheld on June 23, 2005, when the Supreme Court issued its opinion in Kelo v. City of New London.
Tuesday, March 16, 2010
North Carolina Recession Ends in 2010 !
According to UNCC's economist John Connaughton, North Carolina's economy should grow in 2010 as reported in today's Charlotte Business Journal.
http://bit.ly/91dNHt
That is great news!! But really what does it mean? Not much. Except, we can be more positive about the economy. I do admit, there are signs that the economy may be getting better - however, not so sure about North Carolina when the state will be holding back paying tax returns. But,
1. I am assisting over 30 individuals search for job opportunities in the Charlotte region. Several have found jobs and there seems to be more openings. That is a good sign even if the jobs are in the financial and computer industries.
2. My seminar this week in Dallas, Tx. has NOT been cancelled. This will be the first seminar held in the past year for my subject: Residential land Development Strategies. I have been a seminar instructor since 1997 - having as many as 12 seminars a year with only a few cancellations over the past 13 years. This is a good sign even if it is in Dallas which has been holding its own in real estate development. The registration fee is still almost $1,400 for a non-ASCE member!
I will not be posting over the next three days while presenting my seminar in Dallas. Next week, my topic will be eminent domain. Have a great week!
http://bit.ly/91dNHt
That is great news!! But really what does it mean? Not much. Except, we can be more positive about the economy. I do admit, there are signs that the economy may be getting better - however, not so sure about North Carolina when the state will be holding back paying tax returns. But,
1. I am assisting over 30 individuals search for job opportunities in the Charlotte region. Several have found jobs and there seems to be more openings. That is a good sign even if the jobs are in the financial and computer industries.
2. My seminar this week in Dallas, Tx. has NOT been cancelled. This will be the first seminar held in the past year for my subject: Residential land Development Strategies. I have been a seminar instructor since 1997 - having as many as 12 seminars a year with only a few cancellations over the past 13 years. This is a good sign even if it is in Dallas which has been holding its own in real estate development. The registration fee is still almost $1,400 for a non-ASCE member!
I will not be posting over the next three days while presenting my seminar in Dallas. Next week, my topic will be eminent domain. Have a great week!
Monday, March 15, 2010
JOBS, JOBS, JOBS – WHERE ARE THE JOBS?
From the Business Journal: In a report to N.C. lawmakers, officials with the Employment Security Commission of North Carolina say the state will have to
“….add 4,200 jobs per month for the next 60 months for the labor market to return to the level of December 2007, when the slump began.”
“In Charlotte, Wells Fargo & Co. economist Mark Vitner says the city’s more diverse economic base has the potential to aid a faster recovery. He says the five-year statewide recovery estimates are accurate.”
My questions: what industry will create the jobs? When will jobs start to be added back into the labor market? This seems to be hard facts and not an “expert” predicting what or should happen in our economic recovery. I again reiterate. Until housing is trending upward and supported by unemployment trending significantly downward, our economy will bounce along the bottom. “Expect the best and plan for the Worst” Now is the time to rebrand and reinvent yourself to sustain yourself regardless of national problems.
North Carolina
Population(2008annualaverage) 7,019,000
Population (2009 annual average) 7,129,000
Civilian labor force (2008 annual average) 4,570,000
Civilian labor force (2009 annual average) 4,545,000
Employed (2008 annual average) 4,287,000
Employed (2009 annual average) 4,061,000
Unemployed (2008 annual average) 283,000
Unemployed (2009 annual average) 484,000
Unemployment rate (2008 annual average) 6.2%
Unemployment rate (2009 annual average) 10.6%
Closing the (unemployment) books on 2009 an article by G. Scott Thomas, Projects Editor for Buffalo Business First
http://bit.ly/dzYOJc
The U.S. Bureau of Labor Statistics issued their 2009 unemployment statistics report incorporating a full set of annual averages for each state. The article link has a sortable database with the annual figures for all 50 states and the District of Columbia. If you click View Details for a particular state, you’ll get additional numbers for 2009, as well as the corresponding figures for 2008. I have added the above information for North Carolina.
“….add 4,200 jobs per month for the next 60 months for the labor market to return to the level of December 2007, when the slump began.”
“In Charlotte, Wells Fargo & Co. economist Mark Vitner says the city’s more diverse economic base has the potential to aid a faster recovery. He says the five-year statewide recovery estimates are accurate.”
My questions: what industry will create the jobs? When will jobs start to be added back into the labor market? This seems to be hard facts and not an “expert” predicting what or should happen in our economic recovery. I again reiterate. Until housing is trending upward and supported by unemployment trending significantly downward, our economy will bounce along the bottom. “Expect the best and plan for the Worst” Now is the time to rebrand and reinvent yourself to sustain yourself regardless of national problems.
North Carolina
Population(2008annualaverage) 7,019,000
Population (2009 annual average) 7,129,000
Civilian labor force (2008 annual average) 4,570,000
Civilian labor force (2009 annual average) 4,545,000
Employed (2008 annual average) 4,287,000
Employed (2009 annual average) 4,061,000
Unemployed (2008 annual average) 283,000
Unemployed (2009 annual average) 484,000
Unemployment rate (2008 annual average) 6.2%
Unemployment rate (2009 annual average) 10.6%
Closing the (unemployment) books on 2009 an article by G. Scott Thomas, Projects Editor for Buffalo Business First
http://bit.ly/dzYOJc
The U.S. Bureau of Labor Statistics issued their 2009 unemployment statistics report incorporating a full set of annual averages for each state. The article link has a sortable database with the annual figures for all 50 states and the District of Columbia. If you click View Details for a particular state, you’ll get additional numbers for 2009, as well as the corresponding figures for 2008. I have added the above information for North Carolina.
Friday, March 12, 2010
Residential Strategies Seminar
The last Residential Land Development seminar will be held in Dallas next week. If interested in attending, I can get you a ten percent discount on the registration fee. I will be adding several new sessions to stay current with the market and industry changes. I will be including sessions on social networking, new profit center ideas, and a look back & forward for industry changes and how to stay on the cutting edge. This seminar will be a small group but that allows us more one-on-one discussion and thinking outside of the box.
This seminar was first given in 1997 and the active participation of the attendees kept the topics fresh and innovative. I expect to continue this interactive approach in my new seminar starting in June. My goal of having land development engineering courses included in undergraduate civil engineering programs remains intact and actively seeking schools interested in exploring this idea. If you have a contact and want me to initiate the discussion, please let me know. A new ASCE seminar will be launched;
Sustainable Land Development - Ensuring Growth in a Green Economy
“The future of real estate development will change significantly in 2010 and beyond. This seminar focuses on the land development engineer’s leadership in effecting this industry change. Cutting edge land development practices will be discussed including; sustainable project approaches, horizontal and vertical mixed use development patterns and ways to forge industry change for sustainable and consistent future growth. Attendees will debate and define new business practices and profit centers. Whether new to the industry or a seasoned professional, launch new practices ahead of your competition.”
The initial seminars are scheduled for:
Minneapolis in June
San Francisco in July
Atlanta in September
Boston in November
This seminar was first given in 1997 and the active participation of the attendees kept the topics fresh and innovative. I expect to continue this interactive approach in my new seminar starting in June. My goal of having land development engineering courses included in undergraduate civil engineering programs remains intact and actively seeking schools interested in exploring this idea. If you have a contact and want me to initiate the discussion, please let me know. A new ASCE seminar will be launched;
Sustainable Land Development - Ensuring Growth in a Green Economy
“The future of real estate development will change significantly in 2010 and beyond. This seminar focuses on the land development engineer’s leadership in effecting this industry change. Cutting edge land development practices will be discussed including; sustainable project approaches, horizontal and vertical mixed use development patterns and ways to forge industry change for sustainable and consistent future growth. Attendees will debate and define new business practices and profit centers. Whether new to the industry or a seasoned professional, launch new practices ahead of your competition.”
The initial seminars are scheduled for:
Minneapolis in June
San Francisco in July
Atlanta in September
Boston in November
Thursday, March 11, 2010
Land Investment Philosophy
Please consider my philosophy as a guide:
Look for a “needle in the haystack” – you do not need to buy.
Relentless knowledge of the market
Look for singles rather than home runs
Get in and get out.
Ensure the end user will make a profit
Think outside of the box
Do your own homework before making an offer – the land will still be available and if not, move to the next opportunity. Relentless preparation.
Do not let emotion rule your decisions.
Know what you want to achieve with the property
Buy only when you are ready to buy.
Use local government as a contract escape clause
Remember --- It is all in the land!
If you should want a further explanation of any of the above points, I would be glad to give you my thoughts.
Wednesday, March 10, 2010
Alarming Facts Not on the Real Estate Radar
The home building and real estate development industry is a manufacturing industry. This is an industry that produces lots, homes, and all non-residential projects.
Anyone since 1991 in the industry has not faced a recession. Unfortunately, this recession has not been fair to any manufacturing industry. I consider myself a student of housing and believe that housing has always been and should be the answer to our economic problems. We manufacture “shelter” and industries that rely on houses being built are enormous. However, today the complexities of our economy are staggering.
Since manufacturers look at the supply chain every waking moment, builders and developers look at the conveyor belt and estimate the number of orders for new houses and also the number of improved lots available to build on.
There are important real estate development facts not being highlighted as an issue or addressed by any media outlet. The real estate development business is a fragmented industry affected by local circumstances i.e. market and local politics.
I don’t want to over think the issue nor do I want to simplify an extremely complex, dynamic, and localized industry. However, it is essential to highlight an alarming fact not on the real estate radar. The following statistics are generated from sources in the industry: Metrostudy.com, HBA’s, and CharlotteBetweentheLines.com. An important statistic to ascertain the health of the housing market is housing starts. Obviously, a builder must have an approved and improved lot to construct a house. Most all analysis is focused on housing starts, foreclosures and short sales. Only housing starts are directly affected by the inventory of lots available for new home construction.
The conveyor belt is essentially void of product and the end of the conveyor belt is piling up with over priced, over valued, and poor located projects/lots. The inventory ready to be placed on the conveyor belt will have to be adjusted in price before being launched into the marketplace. Since the real estate development industry is localized and fragmented, what will your market look like in five years? Rebrand and reinvent accordingly. Let’s explore the inventory of finished lots and projects ready for production.
Charlotte, North Carolina
2009 Housing Starts 4,907 units (1)
As a reference, Charlotte housing starts in 2007 was 24,869 units
# of Improved Lots available for new housing construction 40,000 lots (2)
As a reference, Atlanta has over 149,000 finished lots
Denver has approx. 17,000 finished lots
# of Approved & Unimproved lots available for land development 63,000 lots (3)
(1) 3-6% increase in housing starts is expected in 2010
(2) Lot supply for approx. 8-years or less based on economic recovery
Many subdivisions are stalled, idle, or taken back by lenders
Most of these improved lots were subdivided from vacant land purchased at the height of the market – lot prices would also have to be readjusted to reflect new housing prices
Permits and approvals may expire or construction violations may occur
(3) After previous recessions, “on the shelf” projects were placed on the manufacturing conveyor belt to satisfy the demand for finished lots and to sustain the recovery. These projects had active approvals, permits and entitlements.
Based on the inventory of existing improved lots, many of the “on the shelf” projects will not go forward due to costs, expired permits and the contract purchasers may be out of business.
Business strategies facilitating joint venture alignments with land owners, investors and land development engineers will readjust expectations. Many of the approved & unimproved subdivisions will not move forward due to its location, uncompromising position by land owners, or government’s unwillingness to support marginal projects.
Will there be some bright spots in the housing market? Yes but the chances that you live and work in that location or even want to live and work in that location is slim. As an example, is Denver poised to recover faster than Atlanta? Yes, in my opinion. However, I am not ready to move to Denver!
Tomorrow’s blog post will outline a land investment philosophy for the individual.
Tuesday, March 9, 2010
Sustaining Sustainability isn’t Always Easy
Article by Mary Newson, Citiwire.net. Posted March 5, 2010, DavidsonNews.net http://bit.ly/aOZdGx
Excellent article on sustainable growth ideals dampened through time and political change. The question remains, can we produce sustainable communities meeting the test of time with our current land use and planning approach? In my opinion, no. Why? Local politics layered with regional, state and federal controls of real estate development and their total lack of structural flexibility does not promote innovation, creativity, and entrepreneurship. Government is slow to react to changes and in most cases remains a road block for the industry to adequately address market shifts.
A simple example, if you wanted to start a business and work from home to generate cash flow, most local zoning ordinances would not permit this use in a residential area.
Definition: “A sustainable community effort consists of a long-term, integrated, systems approach to developing and achieving a healthy community by jointly addressing environmental, economic and social issues.
Fostering a strong sense of community and building partnerships and consensus among key stakeholders are also important elements of such efforts”
Beth Lachman, Critical Technologies Institute, April 1977
Excellent article on sustainable growth ideals dampened through time and political change. The question remains, can we produce sustainable communities meeting the test of time with our current land use and planning approach? In my opinion, no. Why? Local politics layered with regional, state and federal controls of real estate development and their total lack of structural flexibility does not promote innovation, creativity, and entrepreneurship. Government is slow to react to changes and in most cases remains a road block for the industry to adequately address market shifts.
A simple example, if you wanted to start a business and work from home to generate cash flow, most local zoning ordinances would not permit this use in a residential area.
Fostering a strong sense of community and building partnerships and consensus among key stakeholders are also important elements of such efforts”
Beth Lachman, Critical Technologies Institute, April 1977
Monday, March 8, 2010
Best Affordable Suburbs in America 2010
Business Week article by Venessa Wong, March 3, 2010 http://bit.ly/9pKdY4
The article “focus is on communities where families can live well for less and enjoy good schools, low crime, and reasonable commutes.” The top ten communities are:
Fishers, IN
Papillion, NB
Mililani, HI
Huntersville, NC
Montgomeyville, PA
Hales Corner, WI
Roxborough Park, CO
Brandon, SD
Savage, MN
Clark, NJ
This is Birkdale and is located in Huntersville, NC. This is a successful vertical mixed use project with retail, restaurants, and apartments. The parking is on a one-way internal oval with the builidngs on the perimter. Residential scale architecture with parking garages hidden behind the vertical integrated mixed use buildings.
Since I live in Huntersville, NC, this is a great place to live. For real estate development, this area is a developer friendly environment. Being only 13 miles from “Uptown” Charlotte, 10 miles from the airport, between the ocean and mountains and being next to Lake Norman combined with affordable real estate prices with room to grow, I would agree with Business Week’s selection of Huntersville, NC.
The article “focus is on communities where families can live well for less and enjoy good schools, low crime, and reasonable commutes.” The top ten communities are:
Fishers, IN
Papillion, NB
Mililani, HI
Huntersville, NC
Montgomeyville, PA
Hales Corner, WI
Roxborough Park, CO
Brandon, SD
Savage, MN
Clark, NJ
Since I live in Huntersville, NC, this is a great place to live. For real estate development, this area is a developer friendly environment. Being only 13 miles from “Uptown” Charlotte, 10 miles from the airport, between the ocean and mountains and being next to Lake Norman combined with affordable real estate prices with room to grow, I would agree with Business Week’s selection of Huntersville, NC.
Friday, March 5, 2010
Words & More Words
Politicians and the media seem to use words not generally used in our everyday conversations. The following three words are becoming overused in news reporting but rarely if ever used by us in our everyday discussions at work or home.
Source: Dictionary.com an Ask.com service.
par•a•digm
1. One that serves as a pattern or model.
2. A set or list of all the inflectional forms of a word or of one of its grammatical categories: the paradigm of an irregular verb.
3. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline.
nar•cis•sism
1. Excessive love or admiration of oneself.
2. A psychological condition characterized by self-preoccupation, lack of empathy, and unconscious deficits in self-esteem.
3. Erotic pleasure derived from contemplation or admiration of one's own body or self, especially as a fixation on or a regression to an infantile stage of development.
4. The attribute of the human psyche characterized by admiration of oneself but within normal limits.
dis•in•gen•u•ous
1. Not straightforward or candid; insincere or calculating: "an ambitious, disingenuous, philistine, and hypocritical operator, who ... exemplified ... the most disagreeable traits of his time" (David Cannadine).
2. Pretending to be unaware or unsophisticated; faux-naïf.
3. Usage Problem Unaware or uninformed; naive.
Source: Dictionary.com an Ask.com service.
par•a•digm
1. One that serves as a pattern or model.
2. A set or list of all the inflectional forms of a word or of one of its grammatical categories: the paradigm of an irregular verb.
3. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline.
nar•cis•sism
1. Excessive love or admiration of oneself.
2. A psychological condition characterized by self-preoccupation, lack of empathy, and unconscious deficits in self-esteem.
3. Erotic pleasure derived from contemplation or admiration of one's own body or self, especially as a fixation on or a regression to an infantile stage of development.
4. The attribute of the human psyche characterized by admiration of oneself but within normal limits.
dis•in•gen•u•ous
1. Not straightforward or candid; insincere or calculating: "an ambitious, disingenuous, philistine, and hypocritical operator, who ... exemplified ... the most disagreeable traits of his time" (David Cannadine).
2. Pretending to be unaware or unsophisticated; faux-naïf.
3. Usage Problem Unaware or uninformed; naive.
Thursday, March 4, 2010
5-steps to using LinkedIn Effectively
Posted by Jason Donn of eRealEstateSocial.com http://bit.ly/8X9ep0
Jason outlines several key ways to get the most out of LinkedIn. I have summarized as follows:
1. Complete your Profile – sell yourself. This is the one platform to tell everyone “relevant information about yourself” and a complete profile should include your professional interests and professional goals.
Jason states the most important part of the profile is the headline beneath your name. This is similar to an “elevator speech” or the headline on the front page of a newspaper. This is the perfect opportunity to market – you.
2. Build your Network – As I have mentioned before, social networking is about assisting others succeed and you accomplish this by connecting with other professionals. The best way that I have found to build my network is by joining groups and becoming active in the discussions by offering and not taking.
3. Use your Connections – Connect with your connections and consider your network a sphere of influence. Make an effort to reach out to your SOI periodically. Suggest to your connections to view your network and offer to make introductions to those they want to connect with – assisting others.
4. Management of Your Social Network – the bottom line is to update your profile as your situation changes. Keep current and remember your connections and let them know of recent changes that they find beneficial to them.
5. Join Groups – I have three levels of groups. I started a group “Land Development” and now with over 1,400 members. This is a specialty group that will grow at a constant pace since it now markets itself. This group is a professional networking group with specific interests. If you start a group, you must market and promote the group. 2nd level is to join groups and actively participate in the discussions – a daily objective and make connections with the members. The 3rd level is to join groups that you have interest in and the information/connections may be beneficial to you. I have the group discussions emailed to me so I can quickly read the most recent topics – most of which are not of interest but…. some are on point. I then visit the group and actively participate in the specific discussion.
Using Jason’s post as a base for discussion, I have added my thoughts on LinkedIn. Thus far, I find LinkedIn to be best suited for me. If you should have any questions on the use of LinkedIn, please ask. Please visit my LinkedIn profile and based on what I wrote this morning – I think my profile should be updated!! http://www.LinkedIn.com/in/djohnsonpe
Jason outlines several key ways to get the most out of LinkedIn. I have summarized as follows:
1. Complete your Profile – sell yourself. This is the one platform to tell everyone “relevant information about yourself” and a complete profile should include your professional interests and professional goals.
Jason states the most important part of the profile is the headline beneath your name. This is similar to an “elevator speech” or the headline on the front page of a newspaper. This is the perfect opportunity to market – you.
2. Build your Network – As I have mentioned before, social networking is about assisting others succeed and you accomplish this by connecting with other professionals. The best way that I have found to build my network is by joining groups and becoming active in the discussions by offering and not taking.
3. Use your Connections – Connect with your connections and consider your network a sphere of influence. Make an effort to reach out to your SOI periodically. Suggest to your connections to view your network and offer to make introductions to those they want to connect with – assisting others.
4. Management of Your Social Network – the bottom line is to update your profile as your situation changes. Keep current and remember your connections and let them know of recent changes that they find beneficial to them.
5. Join Groups – I have three levels of groups. I started a group “Land Development” and now with over 1,400 members. This is a specialty group that will grow at a constant pace since it now markets itself. This group is a professional networking group with specific interests. If you start a group, you must market and promote the group. 2nd level is to join groups and actively participate in the discussions – a daily objective and make connections with the members. The 3rd level is to join groups that you have interest in and the information/connections may be beneficial to you. I have the group discussions emailed to me so I can quickly read the most recent topics – most of which are not of interest but…. some are on point. I then visit the group and actively participate in the specific discussion.
Using Jason’s post as a base for discussion, I have added my thoughts on LinkedIn. Thus far, I find LinkedIn to be best suited for me. If you should have any questions on the use of LinkedIn, please ask. Please visit my LinkedIn profile and based on what I wrote this morning – I think my profile should be updated!! http://www.LinkedIn.com/in/djohnsonpe
Wednesday, March 3, 2010
Peak of The Week
The Peak of the Week is a short look back and a peek into the near future. Only "food for thought."
In the Very Near Future
From Article by Tony Pugh of McClatchy Newspapers, Washington, DC
“Annual jobless rates for people 55 and older were higher in 2009 than at any time since the government started collecting the date in 1948.”
There are 1.3 million men 62 years and older that started receiving their retirement benefits in 2009. “This was the most new male beneficiaries in any year since Social Security payments began in 1940.”
The Social Security trust fund surplus is expected to remain relatively constant due to the recession but most experts expect deficit cash flow beginning in 2016.
Taking Social Security benefits at age 62 rather than waiting results in about a 25% reduction in payments but one person calculated that it would take 20-years to make up money received between age 62 and the retirement age 66. At age 66 you are eligible to receive 100% Social Security benefits. Or course, this is the case now but who would be surprised if our politicians decided to change the retirement age to 70!!
This is now 2010 and Social Security deficit cash flow in 6-years! You do the math.
Illustration by Steve Breen.
In the Very Near Future
From Article by Tony Pugh of McClatchy Newspapers, Washington, DC
“Annual jobless rates for people 55 and older were higher in 2009 than at any time since the government started collecting the date in 1948.”
There are 1.3 million men 62 years and older that started receiving their retirement benefits in 2009. “This was the most new male beneficiaries in any year since Social Security payments began in 1940.”
The Social Security trust fund surplus is expected to remain relatively constant due to the recession but most experts expect deficit cash flow beginning in 2016.
Taking Social Security benefits at age 62 rather than waiting results in about a 25% reduction in payments but one person calculated that it would take 20-years to make up money received between age 62 and the retirement age 66. At age 66 you are eligible to receive 100% Social Security benefits. Or course, this is the case now but who would be surprised if our politicians decided to change the retirement age to 70!!
This is now 2010 and Social Security deficit cash flow in 6-years! You do the math.
Illustration by Steve Breen.
Tuesday, March 2, 2010
Should you know your housing market? Short answer is YES!
Even if you are not in the market to buy or sell a home, you should at least investigate the real estate prices and values in your area. Information is a powerful tool. Do you own research or I would be glad to send you information on homes in Charlotte, NC. Why?
Today starts the last 60 days of the federal tax credit program. You may eligible to receive from the federal government $8,000 for a first time home buyer or $6,500 for a repeat home buyer. Prices are bouncing along the bottom in Charlotte, inventory remains high, sellers are contributing to closing costs but interest rates may be trending up. What about your area? Scroll down to my 2-18-2010 post for the Home buyer Tax Credit Timeline and it is clear time is running out!
Perhaps you or someone you know is considering moving to Charlotte, NC. If so, I will send you homes listed in the Charlotte area by location, your price range, and housing criteria i.e. number of bedrooms, garage, etc. Send me your search criteria and I will email you a selection of homes for you to evaluate the price, value, features, etc. If you want information in another part of the country or even in an international location, I can provide you with a real estate professional to contact.
You should be armed with information. We should all know the real estate market because if you are not interested in buying or selling now, you probably know someone that is. Please email this post to them. Social networking is about giving and not taking. I will provide you with information. Just ask.
If not now, When?
Today starts the last 60 days of the federal tax credit program. You may eligible to receive from the federal government $8,000 for a first time home buyer or $6,500 for a repeat home buyer. Prices are bouncing along the bottom in Charlotte, inventory remains high, sellers are contributing to closing costs but interest rates may be trending up. What about your area? Scroll down to my 2-18-2010 post for the Home buyer Tax Credit Timeline and it is clear time is running out!
Perhaps you or someone you know is considering moving to Charlotte, NC. If so, I will send you homes listed in the Charlotte area by location, your price range, and housing criteria i.e. number of bedrooms, garage, etc. Send me your search criteria and I will email you a selection of homes for you to evaluate the price, value, features, etc. If you want information in another part of the country or even in an international location, I can provide you with a real estate professional to contact.
You should be armed with information. We should all know the real estate market because if you are not interested in buying or selling now, you probably know someone that is. Please email this post to them. Social networking is about giving and not taking. I will provide you with information. Just ask.
If not now, When?
Monday, March 1, 2010
5 Lessons from the Housing-Bubble Bust
Article by Tamara E. Holmes of Bankrate.com - http://bit.ly/bsMuHH
I have summarized the five lessons but please read the article for a more in-depth discussion.
1. Adjust your Housing Expectations
2. You can’t Time the Market
3. Your Home is not a Piggybank
4. Do Your Own research
5. Think Long-Term Financing
Know your specific housing market and do not rely on national statistics to guide your decisions. Look for trends rather than month-to-month or year to year comparisons. The most important component of the housing market to watch closely in March is interest rates. I am afraid interest rates will be trending up and those watching from the fence will not be ready to react and take advantage of low interest rates and the federal tax credit.
I have summarized the five lessons but please read the article for a more in-depth discussion.
1. Adjust your Housing Expectations
2. You can’t Time the Market
3. Your Home is not a Piggybank
4. Do Your Own research
5. Think Long-Term Financing
Know your specific housing market and do not rely on national statistics to guide your decisions. Look for trends rather than month-to-month or year to year comparisons. The most important component of the housing market to watch closely in March is interest rates. I am afraid interest rates will be trending up and those watching from the fence will not be ready to react and take advantage of low interest rates and the federal tax credit.
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