Monthly Archives: August 2009

Teles Weekly Activity 8/24-8/28

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NEW LISTING:

1344 Monaco Dr., Pacific Palisades (90272) :::  MLS #  09-394113
Listed Price:  $5,795,000
Listing Agents: Elizabeth Puro– Teles Properties- BW

11974 Crest Pl., Beverly Hills (90210) :::  MLS #  09-393663
Listed Price:  $5,147,000
Listing Agents: Chris Pickett & Ernie Carswell– Teles Properties- BH

9748 Saturn St., LA (90035) :::  MLS #  09-394763
Listed Price:  $2,049,000
Listing Agent: The Fiedlers – Teles Properties- BH

3774 Ashwood Ave., LA (90066) :::  MLS #  09-394329
Listed Price:  $1,095,000
Listing Agent: Karen Nation – Teles Properties- BH

2745 Oakhurst Ave., LA (90034) :::  MLS #  09-394117
Listed Price:  $975,000
Listing Agents: The Fiedlers– Teles Properties- BH

1914 Selby Ave. #101, LA (90025) :::  MLS #  09-393723
Listed Price:  $559,000
Listing Agent: Chad Lund & Patty Best – Teles Properties- BH

PRICE REDUCTION:

500 N. San Vicente, West Hollywood (90048) :::  MLS # 09-382393
Original Listed Price:  $1,399,000  :::  New Listing Price:  $1,095,000
Listing Agent: The Fiedlers – Teles Properties-BH

515 N. San Vicente, West Hollywood (90048) :::  MLS # 09-382397
Original Listed Price:  $1,050,000  :::  New Listing Price:  $935,000
Listing Agent: The Fiedlers – Teles Properties-BH

511 N. San Vicente, West Hollywood (90048) :::  MLS # 09-382395
Original Listed Price:  $995,000  :::  New Listing Price:  $875,000
Listing Agent: The Fiedlers – Teles Properties-BH

1925 Overland Ave. #104, LA (90025) :::  MLS # 09-382561
Original Listed Price:  $459,000  :::  New Listing Price:  $454,000
Listing Agent: Chad Lund & Patty Best – Teles Properties-BH

2317 Glendon Ave., LA (90064) :::  MLS # 09-382393
Original Listed Price:  $4,500  :::  New Listing Price:  $3,950
Listing Agent: Chad Lund – Teles Properties-BH

1515 Beverly Dr. #211, LA (90035) :::  MLS # 09-391393
Original Lease Listed Price:  $3,200  :::  New Lease Listing Price:  $2,950
Listing Agent: J.J. Wallack – Teles Properties-BH

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*For complete information and a list of all our properties click on the link to view our website:
http://www.telesproperties.com/properties/view/

Mortgage Rates – Follow the Money!

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fan2030113How to get the lowest interest rate possible?  Here are some basic rules of thumb for watching mortgage interest rates:

Follow the Money! Interest rates follow the money flow.  Fixed rates are all about the 10 year Treasury note. Treasuries have 2 factors: price and yield. They are inversely proportionate.  If yield goes up price goes down and vice versa.

Here is the key: rates are closely linked to the 10-year yield.

If investors are profit taking in the stock market, that excess capital flows to short term Treasuries. The demand on Treasuries rise and the 10-year yield goes down.  Conversely if the stock market is doing great, the money flows back into stocks, making the treasury market less attractive.  When this happens the only way to sell treasuries is to increase the yield to attract investors.  You got it, mortgage interest rates go up!

To get a low mortgage rate watch for a big profit taking in the stock market – that should get you on the right path to follow the money.

By Bill Grasska, Teles Financial/ www.telesfinancial.com. For more information, please contact Bill Grasska at 310-442-4040 or email him directly at bgrasska@telesfinancial.com.

Teles Value Advantage: Competent Agents

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fan2030159By Peter Hernandez, Teles Properties (www.telesproperties.com)

Teles Properties was founded on a very simple idea: open offices in large profitable markets and hire only competent agents of good reputation and character. This is very different from the current make-up and model of existing real estate companies. They tend to believe and rely on the old number system of hiring lots of agents and opening lots of offices. The current traditional real estate model tends to over hire with large numbers of agents of all levels of experience including the newly licensed. This requires major expense and effort to support these non-productive assets.  At Teles Properties we asked these questions: What if we opened with only competent agents and only opened offices in profitable markets? Would we be able to dedicate our resources to providing better service to our clients and agents? Would we be able to offer a higher level of service? Would we be able to invest in creative marketing, new technologies, thorough research and market statistics, and provide better administrative support? Would the market place appreciate a higher level of service and these added benefits? The answer is yes. At Teles Properties we think it is time for a new real estate model.

Teles Weekly Activity 8/17-8/21

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NEW LISTING:
1918 Westholme Ave., LA (90025) :::  MLS #  09-392931
Listed Price:  $2,595,000
Listing Agent: Chad Lund & Rory Posin – Teles Properties- BH & RE/MAX -West LA

2042 Veteran Ave., LA (90025) :::  MLS #  09-392929
Listed Price:  $799,000
Listing Agent: Chad Lund – Teles Properties- BH

PRICE REDUCTION:

621 Swarthmore Ave., Pacific Palisades (90272) :::  MLS # 09-353049
Original Listed Price:  $2,395,000  :::  New Listing Price:  $1,999,000
Listing Agent: Michael Greenwald – Teles Properties-BW

5966 Graciosa Dr., LA (90068) :::  MLS # 09-386165
Original Listed Price:  $1,195,000  :::  New Listing Price:  $1,098,000
Listing Agent: John Beanum – Teles Properties-BH

146 N. Almont Dr. #3, West Hollywood (90048) :::  MLS # 09-381989
Original Listed Price:  $749,000  :::  New Listing Price:  $699,000
Listing Agent: The Fiedlers – Teles Properties-BH

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*For complete information and a list of all our properties click on the link to view our website:
http://www.telesproperties.com/properties/view/

Real Estate Market – is Timing Everything?

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AA043910Everyone talks about how timing is everything in making money in real estate.  Well I am here to tell you that in a broad sense that is just plain wrong!  There are a lot of ways to make money in the market, buying distressed properties, development, apartment investing with upsides on rents just to name a few.

The general market has many ups and downs so can you actually time the market? Is it really that important?  If you think of home values in long term cycles, clearly no one ever wants to buy on the top.  That is of course unless you sell at the top of the next cycle!  Each and every real estate cycle ends with a higher value than the previous cycle.  Every market correction is followed by an eventual overheated market where values dramatically increase.

If you look at real estate value on a bell shaped curve with value expressed over time, then it really does not matter if you buy on either side of the peak or the valley, you will realize a gain on the next upward swing.

The short term speculator, who buys to resell quickly, without looking to make improvements to the property, is at the greatest risk.  This buyer must always look at the possibility of a longer than expected time frame of holding onto the property and what the impact of any negative cash flow will do to his ability to maintain ownership of the asset.  This is felt the greatest when the properties are heavily leveraged.

As long as you buy to hold for the long term, it does not really matter what side of the curve you buy on.

You will make money and create real estate equity.

By Bill Grasska, Teles Financial/ www.telesfinancial.com

For more information, please contact Bill Grasska at 310-442-4040 or email him directly at bgrasska@telesfinancial.com.

Teles Value Advantage: Green Environment

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fan2030146By Peter Hernandez, Teles Properties (www.telesproperties.com)

Teles Properties strives to improve customer and agent service and we believe that the efficiencies created through technology are key to achieving this goal. We are trying to lead the industry in this effort and are working hard to create a paperless environment. Transacting a real estate sale generates volumes of paperwork. To become paperless is not easy. It requires changing our habits and attending extensive training. The change takes commitment not only from us, but from our colleagues and clients as well. It means reading long documents on the computer instead of printing them to read them. It means overcoming resistance from others because it is new; it takes time to learn and it is not the cultural practice. For example, many have never seen electronic signatures and question their validity. Yet, you can get a passport, file your taxes and even make large purchases online. So why not use electronic signatures for real estate transactions? Why not store files online? We think it is a worthwhile endeavor not only because of the efficiencies that are created, but because it is green and good for our environment. At Teles Properties we think this is a smart idea.

Adjusting Market Place – The New Reality

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There is improvement in the market but there are huge obstacles in its path that have divided economists into two camps. One camp says we have seen the bottom and have begun a slow growth cycle. The other camp says we must not be fooled by the current uptick in statistics and that there is more trouble on the horizon. The bears point out that REO’s are building and unemployment is rising. The bulls see an improving economy with rising stock markets, improvement in the housing and financial sectors, and new corporate profit reports. There is no question that our market has seen improvement, but it is still adjusting to the economic realities of a new conservatism.

Here is what we see in our Micro Market Report. Upper end markets remain quiet with few sales while other sectors of the market see new life. This is the opposite of what was happening when the market was peaking. Then, the first time buyer markets were slow and the upper end market was the busiest. Of the thirty-two markets we follow, sales volume last month increased in 15 micro markets and decreased in 17 micro markets from the same month in the previous year.

The loan market is still tough with stringent qualifying standards and very restrictive appraisal guidelines. This impacts the borrower’s ability to obtain loans over $729,000. Notice of defaults and the build up of bank owned properties raises the question: will there be a damming effect with an explosion of REOs that will hit the market all at once or will their be a slow release of bank owned properties as the banks try and work out loan modifications first? Will the government step in again and require the banks to manage this process? Another question that must be asked is, how much will California’s budget crisis affect our recovery?

These concerns wear heavily on the minds of the consumer. On the flip side, the lowest moment occurred between the months of November through March but since then we have seen steady and consistent improvement in most of the markets we track. The current momentum suggests we are seeing the beginning of a recovery. Predicting when the actual recovery will occur is not something we dare to forecast. Will it be stalled or even aborted by some of the threatening clouds on the horizon? Nobody knows, but we do like what we are seeing.

Teles Weekly Activity 8/10-8/14

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NEW LISTING:

268 S. Lasky Dr. #202, Beverly Hills (90212) :::  MLS #  09-390987
Listed Price:  $1,250,000
Listing Agent: Marty Trugman & Kelly Aluise– Teles Properties- BH

10701 Tennessee Ave., LA (90046) :::  MLS #  09-390891
Listed Price:  $1,250,000
Listing Agent: Chad Lund– Teles Properties- BH

1260 S. Beverly Glen Blvd. #406, LA (90024) :::  MLS #  09-391173
Listed Price:  $683,000
Listing Agent: Marny Maslon– Teles Properties- BW

1025 22nd St., Santa Monica (90403) :::  MLS #  09-390449
Listed Price:  $6,800
Listing Agent: Ellen Conrad – Teles Properties- BW

1515 S. Beverly Dr. #211, LA (90035) :::  MLS #  09-391393
Lease Listed Price:  $3,200
Listing Agent: J.J. Wallack– Teles Properties- BH

PRICE REDUCTION:

400 Morning Star Ln., Newport Beach (92660) :::  MLS # 09-385115
Original Listed Price:  $4,595,000  :::  New Listing Price:  $4,000,000
Listing Agent: Julie Lubin – Teles Properties-BW

11500 San Vicente Blvd. #311, LA (90049) :::  MLS # 09-381447
Original Listed Price:  $1,019,000  :::  New Listing Price:  $999,000
Listing Agent: Melissa Alt – Teles Properties-BW

200 N. Swall Dr. #352, Beverly Hills (90211) :::  MLS # 09-368767
Original Listed Price:  $799,000  :::  New Listing Price:  $749,000
Listing Agent: Chad Lund & Patty Best – Teles Properties-BH

BACK ON THE MARKET:

665 McCadden Pl., LA (90005) :::  MLS # 09-368415
Listed Price:  $1,299,000
Listing Agents: James Simpson & Ellen Conrad – Teles Properties – BH & BW

146 N. Almont Dr. #3, West Hollywood (90048) :::  MLS # 09-381989
Listed Price:  $749,000
Listing Agents: The Fiedlers – Teles Properties – BH

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*For complete information and a list of all our properties click on the link to view our website:
http://www.telesproperties.com/properties/view/

Good News in a Declining Real Estate Market – The Equity Exchange

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fan2030135Real Estate values have declined across the board in every sector of the country. It is a fact that every homeowner has lost a significant amount of equity in their home.It is still very possible that values may continue to decline in certain areas.

Does this mean it is a bad time to sell or buy?Actually the market is perfectly balanced to make that next real estate purchase. Let’s examine the factors; your current home is worth less, so when you go to sell you do get less in the amount of proceeds. You also have less in the way of closing costs. Most closing costs are based on value. When you buy the next home, guess what? That purchase price is lower too! This means that based on the new lower purchase price your mortgage payment will be lower, property taxes lower, insurance lower and yes closing costs will still be less than if you bought in an overheated market. There are also way more properties to chose from. This is all really positive news.

The equity exchange concept is really fitting for the current market conditions in real estate. Usually the equity exchange concept is used with stocks, bonds and other financial instruments. When you sell a stock that has lost value and exit the market you have realized your loss. If you take your proceeds and invest in another stock, and that stock goes up, you have effectively taken your equity from a position of loss and exchanged it to a position of gain. Even if the new stock does not go up for a long time, as long as you are still in the market you have a chance to recapture your loss and make a profit. Once you exit the market entirely, that possibility is gone. The same can be said and done in the housing market.

The best time to move up in the housing market is when prices are down! What? Buy in a declining market? Absolutely, you make money when you buy real estate, not when you sell. The time to buy is when there is less competition. Rates are really historically low; there are many creative and aggressive financing options available. Some financing with utilizing as little as 3.5% for your down payment.

Take a strong look at your current housing situation and see if the Equity Exchange might make sense for you.

By Bill Grasska, Teles Financial/ www.telesfinancial.com

For more information, please contact Bill Grasska at 310-442-4040 or email him directly at bgrasska@telesfinancial.com.

Teles Value Advantage: Service

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By Peter Hernandez, Teles Properties (www.telesproperties.com)

dvp4943568When we think of service standards we look to great companies that are known for delivering services that makes the consumer return again and again because of the experience. Companies like Lexus, BMW, The Ritz Carlton, Four Seasons Hotels and Nordstrom. While there are many great real estate agents, real estate companies as a whole fall short of delivering a consistent high level of service. The real estate industry as a rule allows each agent to define the level of service provided to each customer and in general most companies’ service plans are reduced to putting the property in the MLS, placing an ad, and hoping for the best. In fact they can only guarantee a level of service that their least competent agent can provide. This becomes extremely evident if the firm hires new or inexperienced agents. This brings us to the following questions: Why do traditional real estate companies allow every agent in their organization to do whatever they want when it comes to servicing the client as long as they are compliant with the Department of Real Estate? What other industry endorses such a practice? What if you visited a Four Seasons Hotel and they practiced this model with their employees? Would there be consistency in the experience? Would there be any quality control? Would the brand survive? At Teles Properties we believe delivering the highest level of service through hiring only experienced and competent agents is a smart idea.