Buy Half a House - Equity Sharing Real Estate

The Ins and Outs of Home Search on the Internet

2009-02-11T14:24:00.000-08:00

Let's get down to work!

You've gone onto an internet site you like to search for homes. Hopefully you'll appreciate that each site will offer the same basic information, and many will offer lots of opportunities to narrow your search down. Let's say, for example, that you searched for homes in certain Oceanside, CA neighborhoods, and the 21 homes on the left came up. They're all in the right price range, and they all have the two bedrooms and two baths you absolutely require. But do they have garages? Are there views? What, if any, are the HOA fees for the complex? Are the homes owned by the bank? What school district are they in?

Eventually you can work your way through much of this information, but each site you search on, whether it's my site, or another, will always bring up to a question that simply isn't answered on the internet. That's because a home isn't a pencil. A home is part objective, that is, it's so many square feet, has so many beds and baths, is made of this, roofed with that, and sits on so an so property.

But a home is subjective as well. That is, it breathes. It has life. The home will speak to you in ways that have to be seen or heard to become real. You need to see the home. You need to feel and experience the neighborhood. You need to explore any fears or lack of information you may have with someone who understands and relates to you.

It's time to get in the car and go shopping!

Buying a Home - How Internet Sites Make a Difference

2009-02-08T16:20:00.000-08:00

We talked in our last post about different kinds of web sites for use in helping you find your home. Today we are going to look at two of my sites to get an idea of how you can decide if a particular one is best for you.

My two web sites,DonReedy.net and BuyHalfAHouse.com are completely different in what I hope they will be able to do for you in terms of providing information.

DonReedy.net is a more traditional real estate site. Here you will be able to easily set up a search for the kind of home you are thinking about buying, communicate with me about seeing homes, get loan information and much, much more. Go to the site (just click on either of the links above) and explore. Note that you can have access to information on all the homes that are for sale in Southern California. Try it! Just click on the "Search for Properties" section, use the map, address or area, and have fun.

Once you see how easy it is to find information on homes, I offer you the ability to get even more information on each home by becoming a member of my VIP Program. All I need is your email and phone number, and I'll provide much more detailed information on all the homes, including pricing options, bank owned (REO) properties, tax information, loans and much more. You can also use the VIP Program to ask me to schedule showings of properties you have preselected.

BuyHalfAHouse.com is a much different site altogether. If you read my blog here at all you realize that I have a passion about why home ownership is important, and that every hard working individual or couple should be able to afford to buy their first home. It's always been, however, that getting your FIRST home is always the most difficult. You have to have a downpayment, one that ranges from $10,000 to $50,000, and have good credit. How can you be expected to have saved that amount of money, or have a great credit score, if you're just in the workplace for a short time?

So I am an "evangelist" of sorts for having people learn about and utilize equity sharing. In the case of parents and children, that means that I teach families how parents and their children can buy homes together, benefiting both of them, and making the dream of home ownership come true.

Visit the BuyHalfAHouse.com site now. Explore the educational sections and explanations of how and who Equity Sharing can help. Do you see how the intent of each of these sites, though ultimately purposed to help you buy a home, come at the subject from a different viewpoint?

Let me know what you think. Next post we'll talk about how to take your first steps after you find homes you are interested in.

Buying a home - Getting started on the Internet

2009-02-07T17:01:00.001-08:00

Lets get started on finding that home.

Today we're going to talk about getting started on the Internet. That's where over 80% of you will start your search, and if you know how to navigate all the resources that are available, you'll simply enjoy the process more, learn faster, be smarter, and buy with more confidence.

You probably know that buying a home by looking at information about the homes that are for sale in the area you want is a really smart way to get started. What you may not know is where to look, what to look for, and how to match up the information that's on the Internet with the knowledge of an experienced Realtor, Lendor, Inspector, Escrow and Title person.

So, let's get going. First, let's understand and talk a bit about transparency. That's a buzz word for the way all of us want to do business today. It means that the best Internet sites will be those that let YOU decide what information is important to YOU, not push or pull you to information that vendors, sellers or other businesses want you to utilize before, during and after you buy your home. All good sites (and their are plenty of them!) have in common the purpose of giving you information that you want, and how you want it.

Go to my website, and what you'll see is the basic information you'll need to get started. Let me say that most good real estate agents and companies have web sites that provide information in various styles and formats. Take me, for instance. While DonReedy.Net is my "base" site, providing all you'll need to find an area, select criteria about the home you want, set up searches and be contacted ONLY if you want, I also write and provide information on this blog, and on my companion site Buy Half A House. The difference is worth noting. Using my sites as examples, here's what to look for.

Can you "Search for properties?" This is the mainstay of all good real estate sites. As you probably know, almost all real estate companies now share information about the listings they take (that is, homes that they have contracted to sell), and all this information is presented in a fashion that lets you see pricing, specifications, and just a tiny bit of marketing by the listing company so that you have an opportunity to see why the seller thinks his or her home is just the right one for you.

Also note on my site that I offer "VIP" services. That means that I'm not going to invade your privacy and ask for your phone number or email address unless you decide that the additional services I can offer make sense for you. Always look for a good site to allow you to search for homes without asking for information, and then provide lots more information and services if and when you decide to take the next step.

Okay, enough for tonight. In the next post we'll talk about how my two web sites differ, how to take advantage of the best real estate sites, and we'll also talk about real estate blogs and how they can add to the information you can get about real estate agents and their services.

How To Buy Your Home - The Process

2009-01-15T15:34:00.000-08:00

Here we go. We're about to go through the PROCESS of buying a home. During the next month we'll discuss all the important steps involved in moving from where you're at now into the home you've always wanted. Ready?

First a thought about the concept of buying a home....AS A PROCESS.

Want to buy an orange? Start car. Drive to grocery. Go in. Find orange. Make way to checkout. Pay. Leave. Home. Eat. This is the PROCESS. And with buying a home, it's just about this simple.........well.....no, it's really not.

And the reason it's not even remotely as easy is that the tasks that we perform when buying an orange (start,drive,go,find,make,pay,leave&eat) are tasks that we have done on our own, all our life, and are able to do without much of even a thought. Compare that to the following (short) list of tasks we have to do during the PROCESS of buying a home.

(Agency, Multiple Listing Service, FICO, preapproval/prequalification, HUD statements, Value Range Marketing, FSBO's, contingencies, addendums, title insurance, liquidated damages, highest and best offer, appraisals, escrow, loan conditions, ethics, disclosures, time periods, cancellation rights, and closing....just to name a few).

Even if you think you know what each of these tasks represent, in the setting of the home buying PROCESS they are very complicated, highly charged, tasks that define and protect the multiple parties to the sale. For instance, unlike our orange buying example, which involved one person, a store, perhaps a clerk, and yes, an automobile, a real estate transaction involves agents, Realtors, lawyers, title officers, lenders, underwriters, escrow officers, warranty representatives, property inspectors, appraisers, experts in natural hazard disclosures, transaction coordinators, and yes, sellers and buyers who may be individuals, corporations, trusts or partnerships. We're talking about some serious muddling/clearing up of the tasks by these folks, so the home buying process is much, much more complex.

So as we embark over this next month on a discussion of how get started, how to move forward, and ultimately how to complete the purchase of your home, remember that their IS a process, one which you can learn about here, and that process is at the heart of any success you'll eventually have in that purchase.

Next post - Getting started on the Internet

California on Sale!!!

2009-01-14T18:43:00.000-08:00

Went to a Real Estate Investment meeting last night with two friends, Steve Rosenberry and Mia Rosenberry. Steve is a general contractor and home inspector. Mia is a birddog and much more for snydicators and other real estate folks, and yes, she is a Silpada jewelry salesperson as well.

Here's my take on the meeting, and on a rather big epiphany I had. California real estate is On Sale....no kidding! If you have lived and enjoyed any part of being in California, then NOW IS the time to buy, put down roots, or just simply add an investment to your portfolio that actually makes sense, makes money, and makes every other investment pale by comparison.

I have been working with clients in the Oceanside area, investors, who have found that they can put down 20 to 25% and clean the investment clock by getting a cash flow that is somewhere between $200 to $400 per month...right now....right here.

Renters are lining up (with all the past homeowners who have given up their homes in foreclosure now taking on the roll of renters), and the going rate in most parts of Oceanside are $1500+ for most homes in most of the areas where homes are being foreclosed on.

Buy now. California is on sale. Hasn't happened before. Won't happen again. Call me at 760-802-9713, or email me at don@buyhalfahouse.com. Don't wait. The current money supply (subbject of the next blog) is astronomical, and will be going away in five to six months. That means that the window of opportunity is short, but BIG>>>>>>

California homes are on sale now like they have never been in the past. The time for buying, either for yourself, your children, as an investment, or as a move-up, IS NOW.

Doggone....it's a New Year

2009-01-12T14:23:00.000-08:00

Please say "hi" to the newest addition to our household. His name is Ramius (named after the Sean Connery character in "Hunt For Red October"), and he's a mostly (perhaps totally) rottweiller puppy of ten months of age.

During the last two years we said goodbye to three of our most beloved dogs, two from old age, and one from a particularly horrible accident caused by what is termed "bloat" by veterinarians. Ramius now lives alone with us, and we're looking to find him the perfect companion with whom he can form a life long friendship and relationship.

Do you think, then, that my wife and I have said a hearty and thankful goodbye to 2008? Indeed we have, though with all that is gone, I'm now going to collect my thoughts and remember what was found. Oh, did I forget to mention that I am a Realtor, and therefore all of you can sort of guess that I've had to take a hard look at how I make my living now that the real estate market has collapsed all around us. But doggone, it's a New Year.

During these past difficult years, with 2008 being the granddaddy of them all for us, and probably for you as well, we've taken each Thanksgiving and Christmas to reflect on our family and friends, and to remind ourselves that what seems most difficult often turns out to be that which is most worth looking back on. Both Beth and I have parents in their mid 80's, mine living in Youngstown, Ohio, and Beth's living in Staunton (pronounced STANTON), Virginia. During this past year, while we struggled to pick up the pieces after our dogs passed away, and I struggled to keep my real estate business alive and well, I think we both sometimes just wanted to hang it up so to speak. Vince Lombardi once said that "fatigue makes cowards of us all", and in 2008 it was pretty easy to get fatigued, and end up acting out in cowardly fashion, both in what we wanted for our business lives, and what we wanted for ourselves personally. Losing the dogs, our kids if you will, just wore us out.

But doggone, it's a New Year, isn't it? Our trip back to see Beth's parents at Christmas was very special, and though they are stricken with ailments that should cause them to act with despair and fatique, they did the opposite. Instead they baked cookies, assembled a 1000 piece puzzle, cooked old Norwegian and Swedish fare, served us up Glugg (Scandanavian drink with wine and more), and brought out a Christmas quiz that had all of us questioning whether we had ever read the story at all!

Beth spent much of the last six months taking care of Ramius, easing him into our home from our adoption of him at probably only six weeks, to see him grow daily into a responsive and loving puppy, but a puppy still. Her tasks included taking him out in the middle of the night when required, as a hip injury had sidelined me and given me a virtual free pass from having to perform this duty. What a gal, Beth is!!!

But I digress. Doggone, it's a New Year. Look for us to add to our home a friend for Ramius, and for me to add new ideas and energy to my real estate business. Already we have blocked out time to walk more together, play more with Ramius, and grow our family even closer. Already we have made goals for ourselves to conquer, and shared ideas about things that we want to do for ourselves and others in this coming year. Already we have planned to see more of our friends, keep more of our commitments, and share more of our free time together.

Doggone right.

Wanna Be on the "Smart Side"???

2009-01-08T21:23:00.000-08:00

It's coming, and not soon enough if you ask me.

It's coming, and even Arnold (pronounced "Ahhhhknowlddddd") and his band of merry men up in Sacramento can't stop us.

It's coming, and it will be here before the snows stop melting in the Sierra's.

Stay tuned.......This time we're going to show you how to KEEP OUR KIDS IN CALIFORNIA, no strings attached.

In February we'll be letting you know about a Webinar that is upcoming in which a group of us real estate types (lenders, lawyers and Realtors) will be showing you how to help yourself and your children take part in the American dream, take ownership of a home, and begin the process of building a life of their own in this beautiful state of California.

To get yourself oriented, just stay tuned to this blog.

Wanna be on the smart side? Stay put.....we'll come to you.

Love the Marines

2008-07-01T19:20:00.000-07:00

I was in the Marines, seems like a lifetime ago. My most vivid memory was during the first 24 hours we were at Parris Island. I was, you see, already a college graduate, and a worldly 22 years old.

The men, however, in my recruit training company, were not in fact men at all. Heads shorn, bumpy, blotchy and badly cut up, revealed only boys, if that. Honestly, some of them looked like children.

Gone immediately were all my beliefs about how Marines looked. There were no John Waynes in this group. Opie's from Andy Griffith were more like it. It had the effect of scaring me, as I reflect now, since I was pretty sure I didn't want to crawl from foxhole to foxhole enaged in hand-to-hand combat with babies as my backups.

But, I love the Marines, honest to goodness I do. I love them because in just 10 short weeks of pomp and pushups and punishment and pugil stick fighting and parade grounds and just the right amount of pride......these babies transformed into fighting men, men who were worthy to be called America's finest.

It's about to be July 4th again. I've seen quite a few now, and although I spend most of my time now helping families find real estate, buy homes, and figure out loans, I can't ever stop being part Marine.

My wife, Beth, and my puppy both love me, so no need to get gushy with me. But please, please find your way this coming week to come alongside a veteran, army, navy, airforce, coast guard or Marine, and love that person....love them with purpose. Their purpose is to serve, and all they ask is that we honor.

I love the Marines.

Stop By EPerks....and Get Sued

2008-06-16T13:55:00.000-07:00

Have you ever stood in line at the Customer Service counter at a department store and overhead someone who was really unhappy complaining?

This happened to me last week, and while I was taking this all in, it occurred to me that the customers who were complaining in this particular department store really had it easy.

Just imagine shopping at what I'll call Eperks Department Store.

You step up to the counter, unhappy, but well aware that customer service and satisfaction are the linchpins of any business. And so, you describe the problem as you see it, ask for a particular action, and expect that you'll get satisfaction, or at least a civil rejection.

But at EPerks Department Store you're in for quite the surprise. Because before you can fill out the complaint form, you're unceremoniously whisked away by security, and in lieu of an apology, explanation or rejection, they serve you with a lawsuit!

This is akin to what is happening in the blogger dispute EPerks has instigated with Vlad Zablotskyy, who in what appears to me to have been a fully legitimate discussion about EPerks, has now been sued for doing so. No Nordstom service for EPerks. Rather than object, even strenuously object, to Vlad's post with a factual refutation of his blog, he was first threatened, then sued.

As I have commented on other blogs, the facts will become clear as this dispute moves forward. Has Vlad Zablotskyy committed an act so grievous as to warrant a lawsuit? Has EPerks been harmed by what they claim are untruths written by Vlad? Will we have no end of settling grievances with lawyers, rather than civil and full discourse?

In the Bible Jesus is telling his disciples that he's going to enter into Jerusalem, and "even if the people say nothing, the stones themselves will cry out." There was a man who knew that the truth always finds its way, and mandating action (i.e. bringing a lawsuit) is not going to facilitate bringing the message forward.

I hope that EPerks will drop its suit, actually apologize for not letting the "stones cry out", and that each side will move ahead with what was most important in the first place. That would be, of course, doing good work, being good neighbors, and loving you neighbor as yourself. EPerks could dole out some love......it would be way more beneficial to them than their current course.

Jim McKay

2008-06-07T12:36:00.000-07:00

Part of the reason I'm in real estate now is because of Jim McKay. Jim died today after a long illness, and was for many of us a voice and personality that reminds us of days gone, both glorious and ignominious.

He covered, of course, the 1972 Munich Olympics where the Israeli weight lifting team was taken captive and then killed after an attempt to rescue them failed. "They're all gone," was all he said, and that phrase still haunts me.

Apparently a good and gentle man, with no outward vices except a love for sports, he wandered off my radar after 1972, but every once and a while I'd see him, and again hearken back to the Munich catastrophe.

Oh, part of the reason I'm in real estate now, the Jim McKay part, is that I inherited a great zest for life after the Israeli's were taken away. "They're all gone" was Jim McKay's wake-up call to me to never take our physical lives for granted, and after that all my undertakings with clients and friends became much more intensely emotional and committed.

"He's gone."

Rest in Peace, Mr. McKay.

Don't be hit by the train...Pay attention!

2008-06-03T20:41:00.000-07:00

I recently gave a talk to some local business folks. In that talk I described the distressed market, explaining short sales, foreclosures and REO's. During the talk I was amazed to see that everyone was on the edge of their seats, and this was somewhat surprising since most of these folks were well heeled, and presumably not experiencing the market distress themselves.

After the meeting, a young couple approached me to say that they had enjoyed my talk, and would I be kind enough to talk with them further about listing and seling their condo. We talked briefly, and they indicated that they thought the home was worth about $300,000, and had been purchased some time back for $265,000. Good news, I thought. These folks CAN sell, and they are one of the lucky ones.

Then, once back at my office, I brought up their home, the comparables in their condo project, and that's when I heard the bells ringing, the horn blowing, and watched as the gates came down just before the train blew through the intersection.

They hadn't been paying attention, and unfortunately this train was not going to stop with good news for them. In their complex 10 condos were for sale with the same rooms and square footage. Asking prices were $155,000 to $180,000, and not one penny higher. These folks were just hit by the market decline train, and because they hadn't been paying attention at the railroad crossing, their hopes of selling were dashed and crashed.

Pay attention, people! Real estate happens, and it's happening to you, around you, and because of you right now. When markets are declining or rising rapidly, that's when it is most important to pay attention. Stray from that attention, and the train that left the station with your money on it won't be coming back through town for quite some time.

Why You Should Fear a Short Sale

2008-06-02T19:37:00.000-07:00

If you've found yourself in peril of losing your home, and then discovered yourself in a conversation about "short selling" your home, then pay attention to this!

In a nutshell, a short sale is where the owner of a home goes to their bank and says in effect "we are a hardship case, and we can no longer pay our mortgage." It is usually the case that the amount stilled owed by the owner is actually much more than what the home is worth. In this case, the owner is asking the bank to let them try to sell the house for less money than they owe the bank (thus the term "short" sale....because you are going to fall short of paying your whole mortgage), and in doing so the owner is supposed to walk away without having to undergo the pain and damage of a foreclosure.

Let's take an example. A couple bought a home in San Diego for $450,000 two years ago. Mortgaged to the hilt, they financed 100% of the sale, and they currently have a first trust deed and of $360,000, and a second trust deed of $90,000. The decline in prices has resulted in the home being worth only $350,000 now, less than 80% of the price they paid. Their rates are rising, and they can no longer pay the mortgage. They are in trouble financially, and without equity in the home, are unable to refinance and move on with their lives.

So they go to the bank and ask for a short sale. The bank says "okay, but keep paying your mortgage." Then the owner places the home on the market for $350,000, and that home is marketed "pending lender approval." Any offers that come in on the property need to be submitted to the bank. Remember, the $350,000 IS NOT THE PRICE THE BANK HAS AGREED TO SELL AT!!! Rather, it is the price the Realtor has told the bank the home MIGHT sell at, and the only thing the bank has agreed to is to review any offers and possibly accept them.

This is why you should fear the short sale, both if you are an owner in dire straits, or a buyer who is really looking to purchase. Both parties are at the mercy of the bank, and the bank's motivation is not to sell at $350,000. Rather it is to keep the owner paying their mortgage, and thus keep the loan alive. If the bank can keep the owner paying, they forestall foreclosure and the loss on the loan for perhaps enough time for the market to gather itself up and make the home worth more. It's not going to be worth enough to pay the mortgage, but if may be long enough to make the bank's loss less.

Now, here's the really bad news. Let's say you go along with the bank, list your home as a short sale, and then some six to eight months later sell the home. Are you off free and clear? The answer is a double whammy NO. First, during these six to eight months you have been paying the mortgage, digging deeper into your reserves to pay the bank. You'll never get a return on your money. And next, what about your credit? Isn't a short sale supposed to be way better financially than going through a foreclosure? Isn't it?

Well, according to Fair Isaac (the folks who bring you the FICO score), a short sale can cause the immediate loss of 200 to 300 points on your credit score, and this stigma will last on your credit from 2 to 3 years. That essentially means that you are persona non grata in the financial world. What happens if you get foreclosed on? Well, your FICO score will go down 300 to 400 points, and you'll have the stigma of this bad credit for 3 to 5 years. Neither result, either from a short sale or a foreclosure, will be pretty to look at financially, but the difference between the two really needs to be looked at without emotion. When you do that, it is clear to me that many more people should be walking away from their homes in a foreclosure, and not burying themselves in the short sale process.

Fear a short sale. You may want to talk to your financial advisor first about any decision you are going to make that will adversely affect your credit, and certainly if you are in jeopardy of losing your home. But don't take a cursory look. Look long and hard at all your options. You can't change the fact that losing your home is going to be painful. You can't change the fact that losing your home will be stressful and perhaps an embarrassment. You can, however, decide which option really affects you now and in the future, weigh those options, and at least keep the financial damage at a minimum.

They do things different in the South

2008-05-29T07:23:00.000-07:00

CHECK OUT THIS BLOG. It highlights that they really are different in the South. At least, insofar as Coldwell Banker and their attitude toward the people they represent as sellers.

Seems they decided to run a SALE on the homes they have listed. The pitch to the sellers was that they should, for a limited time, reduce the asking price of their homes by anywhere from 5 to 10%. Just do like they do in retail, and people will flock to your homes for a bargain!

Wow, what's come of the expertise the real estate industy is supposed to have? What's come of fiduciary duties, common sense, and a real desire to do it right from the beginning? I am not perplexed at this "stunt", because all of us who work in real estate now know the difficulties. I am not even surprised by this "stunt." I am, however, angered by it, as it seems that Coldwell Banker in Florida has decided that since their agents didn't do their job right the first time, i.e. list the home at the correct price up front, they'll now backtrack and try to make it right. Oh, and in the meantime, perhaps they'll sell a few homes.....at a discount.

My client's homes are not discountable! They are financially too important, and viscerally not a commodity in the normal sense of the word. Don't bring this "stunt" to my neighborhood. I do all my homework up front, and my sellers depend on me to make the hard decisions then, not in a fire sale later on.

Signs of the times

2008-05-28T11:05:00.000-07:00

It's becoming more difficult to utilize Open House and directional signs to help potential buyers find a home. Here in San Marcos the City Council has determined that no signs can be placed, directional or otherwise, on public rights of way. Thus, any sign must be placed on private property, making it much more difficult to see, and also requiring a request from the property owner to actually use the property to place the sign.

It's a sign of the times. Even the cities don't want to be bothered with "written" materials any longer. Their mantra is get your info from the media, i.e. TV or web, and stop using up trees to just get directions.

For me, this is a good thing. Open House signs can be placed by lots of real estate folks who just aren't willing to do much work, but just want a quick fix. By buying and placing lots of signs indiscriminately around a neighborhood, these real estate people are trying to catch a client with some sticky paper.

Well, for me, I think I'll try to actually INVITE people to come to my Open Houses, and I'll give them reason to do so, very good directions, and more. I'll do this with my blog, my web site, my internet presence and acumen, and I think both myself and the buyers will be better off for it.

If you have a similar situation with signage in your area, please let me know what you and others are doing to accommodate the wishes of the community, your sellers, and the buyers.

A tribute to Sir, from Unchained

2008-05-27T20:16:00.000-07:00

I wanted to let you know that our adopted dog, Sir, passed away while Beth and I were in Phoenix. He ingested some rocks, got bloat, and then passed away in Beth's care after four long and arduish days.

Because I was at the Bloodhound Unchained conference in Phoenix the whole time, Beth had to care for Sir, cry daily for him, and then ultimately watch him pass....all while I was away. It was, and continues to be, so very hard for her. And for me, being unable to do anything was absolute torture.

But, during my time at the conference, I was befriended by Greg Swann, Cathleen Collins, and Geno Petro, all wonderful people, and truly all I had to keep my sanity and spirit during one very hard week. Greg posted this in his Bloodhound Blog last week, and it means a lot to me.

So read, and see how splendid friendships develop from difficult situations.

Bloodhound Unchained

2008-05-21T09:43:00.000-07:00

I spent this past week in Phoenix, Arizona, just a 6 hour drive from my home in San Diego. The reason for my visit was Greg Swann's and Brian Brady's first ever Bloodhound Unchained conference for Social Networking.

They, along with the participants and attendees, succeeded in a way well beyond my expectations, and I'd like to spend just a few minutes telling you why.

First, these guys know what they're doing! Sure, you can write, blog, pontificate all day long, but once you've committed to hanging it all out in front of lots of smart, passionate, opinionated real estate folks, well you've shown your mettle.

Second, the content was fast moving, completely relevant and on topic, and presented in such a way as to be inclusive of everyone's input. We got to interact, disagree, laugh, and muse, all the while we were taking in the rain that poured out onto every table in the room. By the way, the rain was really soup, but you'll have to go to the Bloodhound blog to read about how raining soup impacts your business.

Lastly, for this small note, the embodiment of this conference was the totality of the people I met. I will post about every one of them in the upcoming weeks, sharing with you how they do business, how they live their lives, how they make a difference in their communities, and perhaps why they might be people you will want to meet either online or in person quite soon. Suffice it to say, you must stop what you're doing now and head to www.bloodhoundrealty.com/bloodhoundblog/. Once you're there, read until your eyeballs grow weary, and your head is filled with soup.

Thanks to all of you I met there.

Merry Christmas to all

2007-12-24T11:01:00.000-08:00

It's Christmas once again. A time to reflect on one's faith if you are Christian, and a time to reflect on life's wonder if you are of other faiths.

Here's the in-law side of the family, back in Virginia, where once again we are poised to travel the always unfriendly skies in search of some respite, good ol' family cooking, and perhaps some snow to top off the holiday.

My wife Beth's parents are growing older (and what, we're not?), and each year it seems we grow closer to each other because we have learned this past year at least one, and perhaps many more things about each other. For my part, this has been year of seeing how dignity is confirmed in a person's life. Both Beth's parents are suffering from some serious medical problems, and yet it is with grace and total giving that they spend their time with us.

Just remember it's Christmas TIME. Money and status will pass, but each moment we allocate to those we love gift wraps a little bit more of ourselves to that person.

May your Christmas TIME be with those you love.

You have to ask for help

2007-12-15T17:08:00.000-08:00

I met with some clients today that I can help. Boy, if I only had the time to tell you all the stories about the clients I didn't meet, simply because they didn't ask for help!

You may be one of these folks, or almost for certain you know someone. Someone who is renting, getting further behind in the financial world because they are seemingly unable to save and grow wealth through real estate. Someone who wishes they could buy a home, but who just simply doesn't know or won't ask for help.

If you are reading this, and if you are someone who dreams of a home, but just doesn't see the possibility coming your way soon......call.

If you are reading this, and if you know why folks who want a home, dream of a home and potentially could have a home, don't ask.....call.

And if you are reading this, and if you know HOW to get the word out.....call. Perhaps it's the way we are deluged with financial information, scams, etc., that keeps away those who would benefit most.

Equity sharing is not a common term among real estate folks, and I think the reason for that is simply one of lack of knowledge on their part. So, if like myself you always want to at least KNOW the limits of your capabilities either as a buyer, seller or real estate person, please comment on what you want to know about this concept.

It's hardly an EOD

2007-12-08T15:14:00.000-08:00

I took a young couple out looking for homes today. First time we had met, and our initial introduction had been through my web site and a couple of emails.

In the course of our meeting I engaged in my usual convivial chatter, finding out in small snippets where they were from, what they were dreaming, and of course, what they "did for a living." Now an old philosopher, Soren Kierkegaard, once wrote "if you label me, you negate me", and being not quite that old, but old enough to remember and revere the 60's, I always ask "what do you do" hoping it creates something that really takes me to the core of that person, not just to the superficial meaning of his or her life as labeled by a job.

So today I asked "what do you both do?" She said, "I'm ex-military, and he's still on active duty."

"What branch?", I asked.

"I was in the Air Force", she said, "and he's in the Marines."

We're here in Oceanside, California, home of Camp Pendleton, and some of the finest young men and women in the whole world. I myself served as a Marine many years ago, but continue to find that meeting and interacting with young service people always makes me glad I live in the San Diego area where so many opportunities arise to do so.

"What do you do in the Marines?", I asked.

"EOD's,", he said.

I'm looking at him, and he's a young guy who clearly loves his gal, his country, and is not a big talker like me. So I ask him, "EOD's....what are they?"

"Explosive Ordinance Devices," he says. "You know, when they set the roadside bombs, me and my unit find them and neutralize them. We make it safe for the rest of the guys."

"Been to Iraq yet?", I asked. "Three tours," he says, and again he's taking his girl's hand and
concentrating on her.

He's not even looking straight at me, and I think I sense he's reluctant to make it sound like anything he does is important. After all, I have my Realtor's badge on, my head filled with facts about the market and all the homes I'm going to show them. It's clear he's looking at me as though I am important.

Well, for today, and to once again remind all of us, Real Estate, is NOT AN EOD!! It's a job, and it's a job some of us do well, love, and that can make a difference, but one that nonetheless "labels" us. I want to say that the next time someone meets me and engages in small talk, including asking "what do you do", I'll say something really honest, really revealing, and perhaps really dangerous. I'll say, "I met a Marine who did EOD removal.....do you know what that is?".....and then talk about this young man and young woman until the subject changes to why what THEY do make what WE do possible.

Equity Share 301

2007-07-18T12:42:00.000-07:00

Why is Equity Sharing such a powerful tool, and why does the light from it reach so far beyond our entrenched way of buying and selling homes? Now we're about to reach deep into the passion I have about this subject, so please allow me to be both subjective and objective while answering this.

At its heart, buying a home is a two-way transaction. It's classic HAVE/WANT economics. The bank "has" money, and we "want" a home. So let's set up some guidelines, put up some fences around the playing field, and let the game begin. This is a game, however, that limits the players by virtue of the guidelines and fences that were erected by the banks and financial institutions. These rules have a history, with a universal, almost numbing set of qualifications. We are lemmings running to the clift edge, not knowing why, numbed by marketing from real estate companies and banks, all of whom seem to be driving in the same lane, to the same destination, with the same old ideas.

What if the way we were taught to buy and sell real estate is flawed? Not flawed so that it never works, or even often works, but that it doesn't always work. And IF we were to make a small change to the rules, i.e. adding a player or two to the game, we could greatly increase the number of successful players.

This happened to me a couple of years ago because of a simple card game of Hearts. You see, I love to play this game. It's a combination of good card playing, strategy and a little bit of balderdash. So what happens when you love the game, but the only player in your universe with whom you can go head to head is just simply better! Better, brighter, quicker, more experienced in the realm of cards. So much better that your game never even gets better. You play with hopes of getting some great or lucky cards, and yet you know you will eventually be bested by a superior player.

What happens, however, if I log onto a Hearts gaming site on the internet? Whoa!!! What happens now is that I can choose to play against players of different levels of experience. I can play, learn and prosper. I can be challenged, and be a challenge. You see, with the introduction of multiple players, the game is considerably more interesting to me, and what is germaine to this conversation, the game is now able to be won by me. I CAN succeed. I CAN compete. I CAN belong. I CAN............buy that house I've always wanted.

Equity Sharing, with the addition of an investor and a real estate attorney who will draft occupancy agreements, turns a game for some into a game for all. Equity Sharing, by turning a single lane highway into a 2, 3 or4 lane freeway, makes the path to home ownership uniquely accessable. Equity Sharing, with multiple players sharing responsibilty, reduces the risk of playing out of your league. Equity Sharing, which Marilyn Sullivan, the leading authority on the subject, defines as "people who jointly buy property and share ownership," is THE single most effective way for members of the real estate community, and for potential buyers and sellers, to significantly broaden their ability to own or sell property.

Here are a couple of powerful concepts that encompass the potential of Equity Sharing.

Equity Sharing offers the POSSIBILITY of success when all other doors have closed.

Equity Sharing may actually cost less than buying or selling in the traditionally financed manner since any additional costs are offset by friendlier and more generous terms.

Equity Sharing for sellers can be a much more effective and potentially secure way for sellers to finance the sale of their home (as opposed to seller carrybacks).

Equity Sharing isn't new, just underutilized.

Equity Sharing is perhaps the most sociologically friendly real estate concept, allowing particpation in a black and white world by those whose philosophies encompass sharing as a mainstay.

Heed the call for this tested and effective way of buying and selling your next home. Equity Sharing has something for everyone to ponder, and in many situations is just "the ticket" (as Jon Lovell used to say on SNL) for success.

Equity Share 201

2007-07-16T07:09:00.000-07:00

Okay, so we know that Equity Sharing is a proven and very effective way of both buying and selling real estate. Instead of just having a bank and a buyer and/or seller involved in the transaction, we will introduce an "investor" into the mix. In doing so the responsibilities are "shared" thus opening the door to possibilities that didn't exist before. But who are the people, and in what circumstances, that will benefit most from Equity Sharing? Here are some of the groups, and the reasoning behind utilizing Equity Sharing for each of them.

First time home buyer with no downpayment. Let's face it, the median price of a home in San Diego is $500,000. That means that if a first time home buyer wants to buy with a fixed rate in the traditional manner, they would have to have 20% downpayment, or $100,000. Practically no first time buyer has that kind of cash for a downpayment. And that leads to attempting to purchase the home with zero down. Once that path is chosen, then the zero downpayment option leads to loan packages with adjustable rates, teaser rates, prepayment penalties, and let's not forget, another $100,000 of actual loan to pay for each and every month. This is a recipe for enormous risk, and it seems to me that the enormous increase in the value of homes during the past 5 years has only exacerbated this.

Divorced and forced to sell your home. Often in a divorce the husband and wife are forced to sell the home so that the equity in the home can be split. Let's say, for example, that a couples' home is worth $500,000, and that they bought the home for $200,000 about 10 years ago. The husband is leaving, and he wants his share (50%) of the value of the equity in the home ($300,000). Where then, does the wife get the 50% or $150,000 to pay to him, and is there any way to do it so that the wife and perhaps the children don't have to be displaced from the home, their friends and their school? With Equity Sharing the answer is "yes." An outside investor is found who is willing to help refinance the home, pay the husband his $150,000, and become a partner with the occupier (wife and children in this example). Generally the wife will continue payments, and after a prescribed period of time of lets say 5-7 years, the investor and the occupier have a written agreement that allows the occupier to buy the home.

Co-ownership. Sometimes it just makes sense to "go in with a friend." This can be a very attractive situation for buyers who have "almost enough money", but not quite enough. Rather than enter into an agreement haphazardly, Equity Sharing creates an occupancy agreement, crafted by attorneys, that outlines ALL the legal and financial aspects of a purchase so that both parties can occupy and enjoy the benefits of home ownership. Additionally, there are times when even well heeled buyers may wish to participate in purchasing vacation property with others. Here again Equity Sharing is THE way to go.

Investors. What Equity Sharing provides is a proven, risk reduced method of investing in the highly tax advantaged real estate market. When you participate in an Equity Sharing agreement with an occupier as above your investment buys you a willing and commited partner, reduced cash flow constraints, and most of the tax benefits that accrue to investment property ownership. And the Equity Sharing agreement gives you the best opportunity to insure that in all market conditions your investment will produce an ROI that is planned out from the very beginning.

Sellers. Do you want to sell and move now, and realize that with all the homes for sale now, many of which are troubled with financial difficulties, that your home may not even be seen? Do you have equity in your home that you want to use either for the purchase of another home, retirement or other purposes? If so, then with Equity Sharing you can potentially sell right now for the price you want, access much of the equity you would from a standard sale, and also maintain an interest in your current property that fully protects you, is taxed advantaged, and from which you will derive further income from later.

These are but a few of the scenarios in which Equity Sharing benefits buyers and sellers. But in our next Equity Sharing 301 session, I'll explain why this methodology not only benefits, it also outshines and outperforms the way we have come to believe is the only way to buy and sell.

Equity Sharing 101

2007-07-13T10:37:00.000-07:00

What is Equity Sharing?

Simply put, it is the process of EXPANDING on what we have been lulled into accepting as the only way to finance property. Rather than purchasing a home with two involved parties, i.e. the bank and yourself, a 3rd party becomes involved. In the process of doing so, the burdens of qualifying, coming up with a downpayment and making monthly mortgage, tax and insurance payments are RADICALLY REDUCED.

What this means is that more folks can buy, those who buy won't have to hock all their belongings and income just to pay the mortgage, and investors who likewise have "gone it alone" will now have a much lower risk real estate investment profile.

Yes, Virginia, there is a downside, and that downside is that the investor perhaps won't make 20% ROI, but rather 10%, and the occupier of the home won't necessarily see a profit of $200,000 in 5 years, but perhaps only $100,000. You see, SHARING makes sense when parties want to cooperate to bring common sense to purchasing and selling real estate.

Equity Sharing is, and rightfully should be, a mainstay in the playing field of any potential seller or buyer of real estate. In Equity Sharing 201 we'll talk about who can benefit from this approach.

See the Pyramids along the Nile

2007-05-29T15:14:00.000-07:00

My wife and I just got back from our tenth anniversary cruise/get out of Dodge/cabin fever trip to the Mediterranean. A welcome time off of some two plus weeks, with a start in Athens, cruise and trips to Olympia, Corfu, Egypt, Santorini, Mykonos, Ephesus and Istanbul. All-in-all a splendid time (with a splendid woman may I add), and now I am back with a renewed spirit of dedication to the concepts of Buy Half a House.

Perhaps I'll spend just a little time on the trip itself. A voyage in and of itself is an exercise is seeing much and seeing too little. Look at the pyramids above. I did, and I also embarked on the ritual of taking photographs to document this wondrous feat of engineering and cultural commitment. But the photos are lifeless, puny, out of proportion and ill-suited to depict how they really look when one is able to stand at their bases. Indeed, you can see them, but what you see is a pixel rather than the full picture. Egypt and the pyramids, you see, are grand and magnificent, and what can be captured by even the miracle of the human eye is insufficient to wholly circumscribe the experience. These standards by which the ancients honored and memorialized their culture are spectacular and awe inspiring, and yet today they can help us to appreciate not only their own times, but our times as well.

For instance, look at real estate. Did you ever ponder real estate from 40,000 feet out your airplane window? Wonder how there could be so much, yet so much crowding? Wonder how we've come to live in pockets? Wonder how our cities compare to those of South America, Europe, or even, for example, Egypt? And if you have, then perhaps you can see that our ways of living and building and buying and occupying are so very cultural and sociological. We have invented the rules by which we will build and occupy, and we are entrenched in this methodology so much so that to deviate seems anachronistic, enigmatic or even alien to our sensibilities. In a word, our ways here in the USA are not the ways of much of the world, and this was illuminated once more to me through a simple trip to shake out the cobwebs.

Buy Half a House. Yes, right now, check out the web site, references and literature that calls us to look at our real estate structure and rethink, retool and remake our way of financing, buying and selling property.

Perhaps what struck me most after traveling to Egypt was the Biblical phrase that suggests that we "build our house on a rock, not on the sand....." The rockbed of our society here in the US has always been family, community and common values. Buy Half A House implores us to go back to our roots, share our resources, prosper through community, while all the time celebrating our individual desire to "own a piece of land." Maybe some sand got kicked in our face with becoming obsessed with making money off our homes instead of making lives in our homes. Let's go back and explore the rock. Let's Buy Half A House.

2007-03-22T18:20:00.000-07:00

Why the name “Buy Half A House?”

What’s in a name, you ask? Well in this case, a lot. You see, home ownership for most of us, read anyone other than an investor, is a singularly personal and oft times private affair. After all, the king, his queen and heirs have to stake out a castle that best befits their goals, their needs and also their ego. And if I’ve gone back too far in history, then the analogy might be best expressed with a look back to the wild, wild west. “Pulling yourself up by your bootstraps” is an American rite of passage known by all of us, and in the case of home ownership, I believe a passage taken too far. Let me explain.

It’s nice to be a straight A student, get a full ride to Harvard, and get that fabulous college education without bankrupting the parents. But it doesn’t happen, does it? No, instead most college students borrow from the Feds, seek out scholarships, work part-time, and occasionally get a fairly hefty handout from mom and dad as well. It’s a team effort from the start, and practically the ONLY way to make it happen.

Do you know any college wrestlers? It’s a sport for the individual, and not a communal sport like basketball, football, soccer or baseball. Because we seem to operate best in a group setting like a team, the majority of sports we play are team sports. (Golf being the notable exception). Team athletics allow average players to perform above average feats, all the while teaching skills that carry over to all other aspects of life.

Why not home ownership then? Why do we have a built in resistance to corporate (group) ownership of a home when in so many other areas of our life groups make such good sense?

The Buy Half A House name signifies a change in the way we ought to think about home ownership. It says “think about the power of the group”. It says “think about whether all or nothing is the sensible way to proceed.” It says “share”, don’ hoard. It says “think”, don’t react.

Hopefully as Buy Half A House with its vision of equity sharing ownership takes flight, many of you will become advocates for this way of owning and prospering in the buying and selling of homes. Hopefully Buy Half A House will create traction with all of us who understand the power of cooperation, the spirit of sharing, and the lessons of team play.

There’s a lot in this name.

.

Working with the dregs

2007-02-22T18:59:00.000-08:00

There's an old Frank Sinatra song that has a wonderful line "...from the brim to the dregs. It poured sweet and clear. It was a very good year...."

With great wine, tasting from the brim, or first portion, is a sweet affair. The flavors that arise aren't an accident. They arise because the wine maker's experience, education and love of the art and science of winemaking are at stake. In a word, the artisan's work is on display, and at first taste, it's either great or not so.

The dregs are what remain at the bottom of the barrel. Not much to taste from. Not much to brag about. In fact, in the Bible Jesus's first miracle is the changing of the water into wine. The miracle does not go unnoticed by the members of the party, and they remark that usually the host will serve good wine first, and then (after inebriation sets in) offer up wine of lesser quality later. Jesus actually serves the best wine later. But I digress.

I'm writing to you today because the business of real estate too often causes one to drink from the dregs, and not from the brim. This is so often the case because unlike the experience and education of the wine maker, real estate agents don't often seem to have or place the care for their own knowledge at a level as high as the wine maker. In short, poor preparation, poor education, and lack of experience make many real estate agents poor wine makers.

In the world of Equity Sharing, and more broadly in the world of real estate finance that stretches the comfort zone of many real estate agents and lenders, I'm coming quickly to see that the lack of education about Equity Sharing, and experience with Equity Sharing, is leaving clients poorly represented. After all, if you COULD buy the property, but your real estate agent only knows one of the many paths that open up that possibility, then you are severely at a disadvantage. Sure, every one talks fixed rates, adjustable loans, option ARMS, etc., but how many real estate agents know lease options, owner carry back, Equity Sharing, Tenant-in-Common, along with HOW and WHY these doors should be opened?

I asked a listing agent on behalf of my buyer if she would ask the seller to entertain a lease with an option to buy. I explained why my buyer needed this, and how I thought it could benefit both parties. On the other end of the phone, this response: "I don't know anything about lease options, and my client (the seller) wouldn't be interested."

Did you hear me put down the keyboard and scream? Assuming you've got a seller who wants to sell, a buyer who wants to buy, a listing agent that wants to sell, a selling agent that wants to buy, then this conversation just put all four parties deep down into the barrel of failure. It's working with the dregs, and these kind of experiences are leaving a bad taste in my mouth.

Perhaps with participation by professionals and Realtors who care about wine making. Perhaps with participation by thinking men and women who care about the clients they serve. Perhaps with the willingness to share some thoughts across the lines of the "box"; well, perhaps this blog and its ideas will age well and taste fine.

Righting the ship

2007-02-06T19:20:00.000-08:00

In sailing, if overexhuberance takes hold of you one particularly fine, windswept day, and you haul in the sheets just so, the vessel that had been skimming you through the ocean at seemingly effortless speed will suddenly turn on you like a bad piece of fruit on a warm day. You have to pay attention, says every good sailor, to the vessel and conditions under which you are sailing. So it is with the real estate market. Oh, for some years we were swept away with exhuberance over rising prices, endless streams of buyers, and sunny horizons each and every day. Last year the sea began to push back a little, the swells increased, winds flailed the mainsail, and we seemed to be coming to the end of a great day of sailing.

Well, it's been about a year now, and I think it's about time to head up on deck, ease the sheets somewhat, and realize that the ship has righted itself once again. Funny thing about sailing. If you oversteer, overtrim, overdo almost any aspect of sailing, you'll slow the boat, piss off the crew, and ultimately ruin what otherwise would have been sheer pleasure. So now that the buyers have taken over the helm, trimmed in the seller's sheets so far that the vessel stalled out, and practically begged the ocean of naysayers to swamp the boat, we find that cooler deck hands have taken back the ship like Captain Morgan and his men.

Yup, the ship otherwise know as the real estate market, is righting itself once again. A sail boat will right itself time and time again, if only the crew will loose the sheets, take their hands off the wheel, and let the ballast, sails and design take over. Now, coming into the late winter, early fall of 2006, buyers have begun to let go of their overexhuberant demands, ease back into realistic offers, and the sea of sellers seem to be willing to calm their expectations enough to make the voyage once again safe and profitable for all.

So, take care all of you who want to steer the real estate market into ruin. It's a sailboat, stupid, not a power boat! Eventually, the wind, waves and design of great sailing ships always right themselves and bring home their crews safely.

Make ready the mooring lines. The market is back in port, crew and owners happy, ready to do business.

Theme for Buy Half A House

2007-01-26T14:50:00.000-08:00

Here's the initial blog that I hope will set the tone for the important messages to come. Indeed these writings, from me, my colleagues and from all of you, are a reminder that participation in a new idea is fraught with danger, with unbridled enthusiasm, and with the hope that the ideas and musings of thoughtful souls will actually make a difference.

This is the theme for this blog. It follows from years of experience, experiences and experimental living this good life we all have. Think on this one phrase, and then stop back and participate more fully.

"A single raindrop seldom thinks itself to be the cause of the flood."