Water is forecast to be one of the biggest environmental and political stories of the 21st century - not just in developing countries, but in North America, as well. Already desalination plants are on the way in the Southwest, including in Southern California, while drought may force Southern nuclear power plants nuclear power plants to scale back production, or shut down, throwing the energy grid into question, news sources report.
ANYONE buying rural property these days - indeed, any property - needs to know from where, and for how much money, if applicable, that property gets potable water. While we don't face that problem right now in the Midwest, knowing your water sources on a property is critical. It impacts the useability of your land, and its value for both tax purposes and when you decide to sell or exchange it.
Tuesday, January 29, 2008
Friday, January 25, 2008
Worth Noting
At our exchangors meeting this week, investment guru Furman Tinon was telling us the story he saw in Money magazine back in 2001. It was about an individual who worked for Enron (of course, all of that is a different story). His 401k was devastated as a result of the corporate meltdown, dropping from $100 per share to around 35 cents per share in value.
I read stories every day of companies with huge losses in a roller-coaster stock market; Ford already has noted that its pension plan is in trouble, and this week noted it posted a fourth-quarter net loss of $2.75 billion, or $1.30 per share, compared with a loss of $5.63 billion, or $2.98 per share, a year earlier.billion for the quarter. The company is also forecasting a net loss for the full year 2008 amid fears of a weakening U.S. economy. Now I think Ford builds a great automobile. One of my cars is a Ford. But looking at that, one has to be honest and ask, "why would I ever invest in Ford?"
I'm not trying to pick on Ford. It's just that their news this week makes a good example. As I have stated on earlier posts, when you invest in stocks, as a shareholder you are paid AFTER all the bills and everyone else is paid, assuming there is a profit.
When you compare the uncertainty of the stock market, and its average investor, with the stability and growth of an individual's portfolio when he or she owns four, or seven, or even 10 investment properties -- the difference is significant. If your 401k drops to nothing, or in a more realistic sense, stagnates and does not grow, or even declines in value, you've got a problem. But real estate doesn't go away. You still collect rent from your office tenants, or multifamily residents. And I haven't even discussed the voluminous tax advantages that are not available to corporate shareholders.
Commercial/investment real estate empowers you . . . it puts you in position to protect your wealth. And if there is inflation, you have wealth forced upon you. Not a bad place to be, actually.
I read stories every day of companies with huge losses in a roller-coaster stock market; Ford already has noted that its pension plan is in trouble, and this week noted it posted a fourth-quarter net loss of $2.75 billion, or $1.30 per share, compared with a loss of $5.63 billion, or $2.98 per share, a year earlier.billion for the quarter. The company is also forecasting a net loss for the full year 2008 amid fears of a weakening U.S. economy. Now I think Ford builds a great automobile. One of my cars is a Ford. But looking at that, one has to be honest and ask, "why would I ever invest in Ford?"
I'm not trying to pick on Ford. It's just that their news this week makes a good example. As I have stated on earlier posts, when you invest in stocks, as a shareholder you are paid AFTER all the bills and everyone else is paid, assuming there is a profit.
When you compare the uncertainty of the stock market, and its average investor, with the stability and growth of an individual's portfolio when he or she owns four, or seven, or even 10 investment properties -- the difference is significant. If your 401k drops to nothing, or in a more realistic sense, stagnates and does not grow, or even declines in value, you've got a problem. But real estate doesn't go away. You still collect rent from your office tenants, or multifamily residents. And I haven't even discussed the voluminous tax advantages that are not available to corporate shareholders.
Commercial/investment real estate empowers you . . . it puts you in position to protect your wealth. And if there is inflation, you have wealth forced upon you. Not a bad place to be, actually.
Tuesday, January 22, 2008
Fed Cuts Benchmark Interest Rate 3/4 Of A Percent
Sensing a financial tsunami about to hit North American shores today, early this morning the Federal Reserve cut its benchmark interest rate by three-quarters of a percentage point. The action is in response to an international stock sell-off and the likelihood of a sharp drop on Wall Street throughout the day today.
Read more here.
Read more here.
Monday, January 21, 2008
Shameless Self Promo: National Commercial Newsletter Features One Of My Projects
This is always fun. I'm not one to toot my own horn about specific projects with which I am involved, but this is one where the national Prudential Commercial Services newsletter editors have seen fit to feature one of my projects as a news story. It is a leasing story regarding the BODIES exhibition, the national tour from Premier Exhibitions, which recently closed down after a successful run in Central Ohio.
Here is the story from Volume 3, Issue 4, just off the presses:
"Brent Greer, Sales Associate, closed a lease on a 27,430 square foot retail facility for a high-profile six-month museum program entitled 'BODIES: The Exhibition.'
"The exhibit, with special lighting and space requirements, has been seen by more than four million people around the world. This is its first appearance in Ohio. Greer identified retail space in a high traffic, 'high-energy' area within 10 days of being notified of the exhibit's need because an exhibit venue in another city had been unexpectedly rescheduled to a later date. Greer began working immediately and found a former CompUSA store in Easton Market retail center that hadn't come on the market yet.
"Negotiations took place with the retail center owners in Cleveland and with Greer and Premier getting approvals and identifying potential restrictions on other tenant leases regarding an exhibitor, as well as CompUSA. Ultimately the center owners agreed that the exhibit would be a huge draw for the Easton Market, otentially drawing 400,000+ visitors.
"Greer recommended a local architect and in two weeks the interior space of the site was converted to have the look and feel of the Smithsonian Institution. The BODIES exhibition has been a subject of some controversy but draws huge crowds wherever it is seen. The promoters spent $500,000+ in the Columbus are to market the high-profile exhibit.
"In addition to BODIES, Premier Exhibitions, based in Atlanta, Ga., also operates touring RMS TITANIC exhibitions, featuring artifacts raised from the sunken luxury liner, Titanic. Premier owns the salvage rights to the vessel."
The rest of the story goes on and on about my professional credentials and areas of specialty. Nevertheless, it was a nice surprise to find myself featured in the parent organization's national newsletter. It was an interesting project, and one that was intense in a very short period of time. Most interesting was the controversy leading up to getting the deal done for my clients, Premier Exhibitions. Specifically, I was receiving telephone calls from the head of the big science museum in town, COSI, begging me not to work with them because my work could have "devastating financial consequences" for our local museum. Seems they have a similar exhibit coming in later this year and felt Premier would upstage them.
That entire discussion is best left to the residents of Ohio, who can choose themselves which is the better exhibit. All I know is that I had never seen anything like BODIES before, and it was presented in an incredibly ethical, and educational manner. I enjoyed working with the team from Atlanta and hope to work with them again on another project elsewhere.
As for the national Prudential commercial newsletter editors choosing the details of my transaction to run as a story, when I know there are many to choose from, it's actually pretty cool.
To the editors -- thanks for the exposure!
Here is the story from Volume 3, Issue 4, just off the presses:
"Brent Greer, Sales Associate, closed a lease on a 27,430 square foot retail facility for a high-profile six-month museum program entitled 'BODIES: The Exhibition.'
"The exhibit, with special lighting and space requirements, has been seen by more than four million people around the world. This is its first appearance in Ohio. Greer identified retail space in a high traffic, 'high-energy' area within 10 days of being notified of the exhibit's need because an exhibit venue in another city had been unexpectedly rescheduled to a later date. Greer began working immediately and found a former CompUSA store in Easton Market retail center that hadn't come on the market yet.
"Negotiations took place with the retail center owners in Cleveland and with Greer and Premier getting approvals and identifying potential restrictions on other tenant leases regarding an exhibitor, as well as CompUSA. Ultimately the center owners agreed that the exhibit would be a huge draw for the Easton Market, otentially drawing 400,000+ visitors.
"Greer recommended a local architect and in two weeks the interior space of the site was converted to have the look and feel of the Smithsonian Institution. The BODIES exhibition has been a subject of some controversy but draws huge crowds wherever it is seen. The promoters spent $500,000+ in the Columbus are to market the high-profile exhibit.
"In addition to BODIES, Premier Exhibitions, based in Atlanta, Ga., also operates touring RMS TITANIC exhibitions, featuring artifacts raised from the sunken luxury liner, Titanic. Premier owns the salvage rights to the vessel."
The rest of the story goes on and on about my professional credentials and areas of specialty. Nevertheless, it was a nice surprise to find myself featured in the parent organization's national newsletter. It was an interesting project, and one that was intense in a very short period of time. Most interesting was the controversy leading up to getting the deal done for my clients, Premier Exhibitions. Specifically, I was receiving telephone calls from the head of the big science museum in town, COSI, begging me not to work with them because my work could have "devastating financial consequences" for our local museum. Seems they have a similar exhibit coming in later this year and felt Premier would upstage them.
That entire discussion is best left to the residents of Ohio, who can choose themselves which is the better exhibit. All I know is that I had never seen anything like BODIES before, and it was presented in an incredibly ethical, and educational manner. I enjoyed working with the team from Atlanta and hope to work with them again on another project elsewhere.
As for the national Prudential commercial newsletter editors choosing the details of my transaction to run as a story, when I know there are many to choose from, it's actually pretty cool.
To the editors -- thanks for the exposure!
Market Meltdown in London Today, Asia Tonight
Brace yourselves if you are in the stock market or have mutual funds. Market meltdown occurred in London today, as the stock exchange there lost 5.5 percent of its value. Asian markets will probably fall out of bed when they open tomorrow (which is tonight for us). The drop marked the biggest drop since the 9/11 terrorist attacks in 2001 for the London Stock Exchanges.
Tomorrow will be a rocking and rolling day for world markets.
Tomorrow will be a rocking and rolling day for world markets.
Sunday, January 20, 2008
Bank Stocks Continue Free Fall
Rough times for shareholders of U.S. banks, which are leading the stock market slide during the first half of the first month of January. Year to date (yes we are only 20 days in), the market is down nine percent.
In the meantime, Merrill Lynch and Citigroup are collectively laying off some 5,000 employees because they are losing so much money, and eliminating dividends. But, tied to lucrative contracts with its execs, the companies will pay billions to the leaders of theserms, whether those executive stay or go in the fallout of the worst performance by bank organizations in more than a decade.
Even the more profitable banks, such as JPMorgan Chase & Co. (JPM) and Wells Fargo & Co (WFC)., said they were bracing for more problems in a wide swath of consumer credit, from home equity loans to auto loans and credit cards. This week will bring earnings from more banks, notably Bank of America Corp. (BAC) and Wachovia Corp. (WB) Companies outside the financial sector with a strong global presence might ease some of the anxiety about America's corporate muscle, but it is unlikely they will cure it.
Upbeat financial results in the coming week from some of the large, multinational companies that make up the Dow Jones industrials - Microsoft Corp (MSFT)., AT&T Inc (T)., Johnson & Johnson (JNJ), Pfizer (PFE), Caterpillar Inc. (CAT) andHoneywell International Inc. (HON) - could lead to some rallies. But no one should be surprised if the gains evaporate as soon as they developed.
The entire 2007 profit of the S&P index occurred during a single week in 2007, despite all the volatility the entire year. Which is why its crazy to guess what's going to happen in the market next.
The mutual fund scandal of the past decade is softening, but on many peoples minds.
But commercial/investment real estate is holding its value and lenders have money to loan. Thus endeth the preaching for the weekend.
In the meantime, Merrill Lynch and Citigroup are collectively laying off some 5,000 employees because they are losing so much money, and eliminating dividends. But, tied to lucrative contracts with its execs, the companies will pay billions to the leaders of theserms, whether those executive stay or go in the fallout of the worst performance by bank organizations in more than a decade.
Even the more profitable banks, such as JPMorgan Chase & Co. (JPM) and Wells Fargo & Co (WFC)., said they were bracing for more problems in a wide swath of consumer credit, from home equity loans to auto loans and credit cards. This week will bring earnings from more banks, notably Bank of America Corp. (BAC) and Wachovia Corp. (WB) Companies outside the financial sector with a strong global presence might ease some of the anxiety about America's corporate muscle, but it is unlikely they will cure it.
Upbeat financial results in the coming week from some of the large, multinational companies that make up the Dow Jones industrials - Microsoft Corp (MSFT)., AT&T Inc (T)., Johnson & Johnson (JNJ), Pfizer (PFE), Caterpillar Inc. (CAT) andHoneywell International Inc. (HON) - could lead to some rallies. But no one should be surprised if the gains evaporate as soon as they developed.
The entire 2007 profit of the S&P index occurred during a single week in 2007, despite all the volatility the entire year. Which is why its crazy to guess what's going to happen in the market next.
The mutual fund scandal of the past decade is softening, but on many peoples minds.
But commercial/investment real estate is holding its value and lenders have money to loan. Thus endeth the preaching for the weekend.
Wednesday, January 16, 2008
Housing Problem Putting Pressure On Rents In Big Run-Up Markets
More fallout from the debt crisis. BTW, its NOT a credit crisis, though people are having trouble getting mortgages because they have too much debt. We're actually back to the way things used to be before all the subprime loan vehicles were created to give credit to people with existing debt problems.
Anyway, this isn't a surprise but analysts are now saying that the housing problem has created -- are you ready -- a rent problem! I have already written on this extensively, but now its official, according to CNN Money.
What happens is that as people, often who either bought a house to flip (don't get me started) in hopes of a short-term big gain, or bought a new home and have their old for sale, cannot get that house they desperately need sold. So they rent it.
Which is exponentially increasing the inventory of available homes for rent.
Which puts pressure on rents.
See the vicious cycle? Read the CNN story here. Fortunately, this is only being felt worst in those market that have been hit hardest by the debt/credit/housing problem. That is, those markets that saw huge, fast run-ups in home prices as speculators took over the market. Atlanta and Houston rents are dropping the most, the report says. But resort areas like Lee County (Ft Myers) in Florida have a similar problem. In fact, according to a mind-boggling New York Times story, one out of every four homes in Lee County is vacant. That is an incredible number. And if you are a house renter there, you can pretty much name your own price, for some owners are in such rough shape that they will gladly negotiate on rent.
Much of Ohio is far stronger economically in that regard and has not seen the steep declines in values, nor the intense pressure on rents. In fact through much of Central Ohio, rents seem to have stabilized. But other parts of the nation are not faring so well.
For investors who understand the value of holding real estate for 5-10-years, the next two years are going to represent a boom time to pick up nice single family homes in strong neighborhoods at a discount. The market will come back, they will appreciate in value, and all the while the rents will pay the note.
Anyway, this isn't a surprise but analysts are now saying that the housing problem has created -- are you ready -- a rent problem! I have already written on this extensively, but now its official, according to CNN Money.
What happens is that as people, often who either bought a house to flip (don't get me started) in hopes of a short-term big gain, or bought a new home and have their old for sale, cannot get that house they desperately need sold. So they rent it.
Which is exponentially increasing the inventory of available homes for rent.
Which puts pressure on rents.
See the vicious cycle? Read the CNN story here. Fortunately, this is only being felt worst in those market that have been hit hardest by the debt/credit/housing problem. That is, those markets that saw huge, fast run-ups in home prices as speculators took over the market. Atlanta and Houston rents are dropping the most, the report says. But resort areas like Lee County (Ft Myers) in Florida have a similar problem. In fact, according to a mind-boggling New York Times story, one out of every four homes in Lee County is vacant. That is an incredible number. And if you are a house renter there, you can pretty much name your own price, for some owners are in such rough shape that they will gladly negotiate on rent.
Much of Ohio is far stronger economically in that regard and has not seen the steep declines in values, nor the intense pressure on rents. In fact through much of Central Ohio, rents seem to have stabilized. But other parts of the nation are not faring so well.
For investors who understand the value of holding real estate for 5-10-years, the next two years are going to represent a boom time to pick up nice single family homes in strong neighborhoods at a discount. The market will come back, they will appreciate in value, and all the while the rents will pay the note.
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