4 Reasons Why the Goldman Sachs Fraud Scandal Is So Dangerous [View article]
Great comparison,"The Producers" would be a simple lesson to explain the manipulation, except the average American will not stop to watch anything without nonstop sex and violence...
A Housing Recovery Investment, And A 15% Dividend Yield Opportunity [View article]
I would like to see their expenses as well as their purchase costs.
I have been property managing several (30 or so) homes mostly in one neighborhood for several years now in close-in East San Antonio. These are low income homes, none over $100,000, and the target renter is HUD supported. Purchased at a very attractive price, renovated and financed during 2004-6 boom. No long term appreciation which is a big minus and in a destructive environment (neighborhood is considered a "bad" area despite City efforts BUT we have not much problem with neighborhood associations etc. ). Vacancy runs about 25%. The plus factors are a low management fee (10% of monthly rental), the availability of cheap labor and materials to repair and low taxes and insurance.
So for this model to work as described in the article above, if I were to do what we do differently, I would buy upper middle class homes in the same neighborhood, for ease of management (do your own property management or suffer) and renting to be used by corporate clients on a furnished, serviced and limited term basis, where the rent rates (above $2/sf per month) would be higher. This model works at our current upper scale condominium rental business in central San Antonio.
As a 67 year old, former small business owner and still working (enjoying work for a younger entrepreneur, and with no plans to "retire" - thankful for health) and I am also receiving Social Security/Medicare after 40+ years of deductions (as is my wife), I think it is time to rethink "retirement". I saw my grandparents pretty much broke supported by their working children. When did the elderly among us become political footballs or a "burden" we are not ready to bear? Get ready, because life takes many twists and turns all not controllable by 401KS! I for one am trying to imagine a system where those "elders" can work and/or participate together, maybe helped by local churches, schools, military/community organizations or even by insurance companies (to get the 'gobmint" out of it), to help each other and thus not be such a burden to society. If this sounds communistic or socialistic so what?
House Majority Leader Eric Cantor says it's time for Americans to "come to grips with the fact that promises have been made that frankly are not going to be kept for many," and young people must "adjust" to a future with fewer entitlements. Straight talk for a change, or a betrayal? [View news story]
Why don't we fire all the bureaucrats and hire the "older" people who still want to work to do the gobmint jobs that remain and need to be done - paying them with more $ than Social Security? Kill 2 birds with one stone?
Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
Real simple response from my memory, check out the garment business in NYC...something like 750,000 jobs gone in the last 50 years...I was there 50 years ago when the ILGWU and teamster union thugs told my Father "either pay up or close" (not to mention the mafia extortion). He of course closed his 100+ job factory; simply put, you can't sell a $9.95 dress to Macys that cost you $10.95 to make. I guess the union thought he would just take the difference out of his pocket, if they thought at all...And I knew the workers, they were good people for the most part, they had no idea what was happening to them.
Basel III A Game Changer For Both Gold And Faux AAA-AA Sovereign Debt [View article]
Excellent article. The end approaches of worthless paper issued by clueless bureaucrats. Bankers will heed the winds as they are wired to survive. I feel like the worlds' "worm" is turning against the printers, who have not only devalued labor but now their currency, towards any store of real value, be it precious metals, real estate or commodities.
NAR Revises The Great Housing Decline [View article]
Wow, that is a huge adjustment 2007-8; echoes my feelings from that time as I was trying to market property in Texas. Can any of this data we hear which is politically slanted and revised over and over actually be more than the same old garbage in - garbage out?
When I Say That AmREIT Is Irreplaceable, I Mean It's A Good REIT To Buy Today [View article]
Builder here in Houston (and all across Texas) for many years, and long an admirer of Weingarten, the concentrating on "power" corners is not a secret in the business. As we built many corner Walgreens (strange that they have no position in the above tenant mix - I do know CVS paid huge premiums for corners to be near Walgreens in Houston when they came here first), Chase Bank, restaurants, etc. but never built for AMREIT (I have heard of them of course)...I agree with this "corner" approach; I also agree that they are somewhat geographically limited...Publix is huge in southeast so maybe that is where they are going (Florida). As an investor I would like to know, if possible, how their leases are structured? The relationship between a shopping center developer/owner and a chain can be the key to success for both, or an albatross in down times for either. Also, do you know if AMREIT plays with any of the multi-family developers who are doing their mixed use (combining retail with residences) best to create another segment of the market building boom here?
Rent A House But Don't Own This Rental Stock Just Yet [View article]
Speaking of malls, check out the supermarket companies that disappeared and became real estate biggies, Weingarten in Houston, and I recall years ago Safeway, A&P...Can anyone say this wont happen to Sears/KMart? Is this the future for SFR's? Is the SFR a thing of the past? I have seen entire single family neighborhoods $50k houses demolished for higher density $300k row/townhouses here in Houston http://bit.ly/YcGqfx
Why QE3 Can't Work: Understanding The Liquidity Trap [View article]
At last, a reply from a real business owner! Thank you! We still exist. I too run a business. Seriously, what costs are changing (going up), Joe? Please elaborate. Maybe others can speak too. Our labor and services cost is down, way down from 4 years ago. Material and maintenance (upkeep or property) costs are flat (you can always find it cheaper on the Web), taxes are flat, overhead is flat (again, the web - cloud - helps); the only area we spend more now is in (our choice) enhancing/upgrading our product (to meet or beat competition), advertising (which produces more revenue, which is up) and possibly fuel and food stuff, which are minimal to our business. Interested in hearing
Safeway: Stock Implosion Offers Prime Buying Opportunity [View article]
Here in Houston, Safeway (Randalls) is also more expensive, weaker in service and has less of a "local" market selection than Kroger, HEB and Wal-Mart. Wal-Mart and HEB are also doing smaller stores with Hispanic flavor, with competition from local Hispanic chains and Whole Foods takes most of the high end market with competition from HEB with Central market stores. Very tough to make it for Safeway. Look for one of the Hispanic stores to break out nationally, like Michoacana.
An Alternate View on Housing: 2011 May Be Homebuilders' Time to Shine [View article]
We are active in the near Eastside and Southtown areas of San Antonio, Texas. The use of existing commercial structures and redevelopment of housing has been slowly building steam (similar to Austin, Houston and Dallas in the past 20 years) - see the following links for examples: blog.mysanantonio.com/.../ also frontporchagent.com/pa...
Why Is Britain's Ministry Of Defense Predicting $500 Per Barrel Oil Prices? [View article]
Supply and demand, give and take, central bankers screwing with money, what does $500 a barrel mean in terms of the world economy anyway? Now if one of these companies can figure out how to make money for $50 a barrel while the rest are hoping for $500 to cover their costs...Don't bet against it (Thanks, George Mitchell!)
4 Reasons Why the Goldman Sachs Fraud Scandal Is So Dangerous [View article]
A Housing Recovery Investment, And A 15% Dividend Yield Opportunity [View article]
I have been property managing several (30 or so) homes mostly in one neighborhood for several years now in close-in East San Antonio. These are low income homes, none over $100,000, and the target renter is HUD supported. Purchased at a very attractive price, renovated and financed during 2004-6 boom. No long term appreciation which is a big minus and in a destructive environment (neighborhood is considered a "bad" area despite City efforts BUT we have not much problem with neighborhood associations etc. ). Vacancy runs about 25%. The plus factors are a low management fee (10% of monthly rental), the availability of cheap labor and materials to repair and low taxes and insurance.
So for this model to work as described in the article above, if I were to do what we do differently, I would buy upper middle class homes in the same neighborhood, for ease of management (do your own property management or suffer) and renting to be used by corporate clients on a furnished, serviced and limited term basis, where the rent rates (above $2/sf per month) would be higher. This model works at our current upper scale condominium rental business in central San Antonio.
How Big Is The Eaglebine Oil Play? [View article]
Facing Retirement: Self-Sufficiency Trumps Everything [View article]
House Majority Leader Eric Cantor says it's time for Americans to "come to grips with the fact that promises have been made that frankly are not going to be kept for many," and young people must "adjust" to a future with fewer entitlements. Straight talk for a change, or a betrayal? [View news story]
Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
Basel III A Game Changer For Both Gold And Faux AAA-AA Sovereign Debt [View article]
NAR Revises The Great Housing Decline [View article]
When I Say That AmREIT Is Irreplaceable, I Mean It's A Good REIT To Buy Today [View article]
As an investor I would like to know, if possible, how their leases are structured? The relationship between a shopping center developer/owner and a chain can be the key to success for both, or an albatross in down times for either. Also, do you know if AMREIT plays with any of the multi-family developers who are doing their mixed use (combining retail with residences) best to create another segment of the market building boom here?
Rent A House But Don't Own This Rental Stock Just Yet [View article]
Is the SFR a thing of the past? I have seen entire single family neighborhoods $50k houses demolished for higher density $300k row/townhouses here in Houston http://bit.ly/YcGqfx
Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
Why QE3 Can't Work: Understanding The Liquidity Trap [View article]
Seriously, what costs are changing (going up), Joe? Please elaborate. Maybe others can speak too.
Our labor and services cost is down, way down from 4 years ago. Material and maintenance (upkeep or property) costs are flat (you can always find it cheaper on the Web), taxes are flat, overhead is flat (again, the web - cloud - helps); the only area we spend more now is in (our choice) enhancing/upgrading our product (to meet or beat competition), advertising (which produces more revenue, which is up) and possibly fuel and food stuff, which are minimal to our business.
Interested in hearing
Safeway: Stock Implosion Offers Prime Buying Opportunity [View article]
An Alternate View on Housing: 2011 May Be Homebuilders' Time to Shine [View article]
blog.mysanantonio.com/.../
also
frontporchagent.com/pa...
Why Is Britain's Ministry Of Defense Predicting $500 Per Barrel Oil Prices? [View article]