Back when the market was smoking hot, sellers wanted their agents to hold open houses to bring in the buyers.

Well now the market is smoking hot again, but for different people. With the flood of foreclosures on the market, the banks are the sellers and they are looking for buyers. We may not have the pressure from them to hold open houses, but to gain prospects, open houses are a great tool.

Even if you don’t have a listing to show as an open house, ask another agent if you can hold their listing open.

You’ll have a flood of potential buyers at your fingertips that you can match with other properties and prospect.

Have a simple information card that they fill out so that you can contact them later.

Try it a few times. You’ll be surprised at how many prospects you can gain.

You capture the growth on a large asset – a house – using a much smaller asset, your down-payment. In a market increasing at 7%, a 20% down payment can produce as much as a 35% rate of return.

Here’s how: You purchase a rental property for $100,000 with 20% down. (For simplicity, let’s assume your rental income exactly covers your interest-only mortgage payments and other costs. So from a rental income and cost perspective you are at breakeven.) Now assume that your investment appreciates in value at 7%, a conservative average for California housing (using 30 years ending 1998).

At the end of one year, you will have a house worth $107,000. Therefore, your gain will be $7,000 on an investment of $20,000, or 35%. This is an enormous return. To put it in perspective, the S&P 500 averaged an 11.7% return (over the same 30-year period ending 1998). If you averaged this return each on $20,000, in nine years you would have nearly $300,000!

But using leverage is risky, because it magnifies both positive and negative returns. For example, let’s say during a market downturn your property is worth $90,000. If you were forced to sell, you would lose $10,000, or half of your $20,000 investment!

If you have money invested in properties in today’s market, you may very well be experiencing negative leverage. How would your legacy look if your heirs were forced to sell your properties now due to your death?

California real estate can be an excellent investment choice, but if you intend to hold properties throughout your retirement years, please consider permanent life insurance as a protection against the forced sale of your properties due to death.

Speakers will beMary Quten and Sandy Wolfe.  Come by from 8:00-8:30 and network with fellow agents and affiliates; make new contacts. Speakers will be presenting from 8:30-8:45 regarding updates on the City of Modesto Parks and Recreation Department.

From 8:45-9:00 there will be an open forum for property discussion which is a great opportunity to advertise your new listing(s).  You can also ask questions or make suggestions based on your want and needs and update other Realtors® on any fabulous properties you have that are still available.

Join your fellow agents and promote your properties…All REALTORS® are Welcome!

LAR Save the Dates:

-August 13th – LAR Picnic at Micke Grove Park

-September 22th – LAR Golf Tournament at beautiful Woodbridge Golf and Country Club

Mike Zagaris has been talking about it since this market cycle began. The foreclosure crisis has been a bane to some, and a boon to others. However, “We’ve found the bottom,” Zagaris said. “The financial institutions have seen the light and are allowing the market to find its own level.” Banks are moving their inventory of foreclosed upon houses, bringing qualified homeowners into the market with heavily discounted properties and sound lending strategies amidst great interest rates.

At PMZ Real Estate, we’ve seen the bottom in our rear view mirror and we’re riding the wave back to the top. Bloomberg points out in there most recent Exclusive story, California’s Discount Foreclosure Sales Point to Housing Bottom, that there are, indeed, good times coming and that there is opportunity available now in the housing market.

Right now there is EXCELLENT opportunity for homebuyers and investors. Home prices are on an average discount of 30-40% according to Bloomberg. Even with the bidding wars going on with foreclosed properties, people are still walking away with huge discounts on the properties they purchase. And, interest rates are still attractive; no where near the 14% they were in the 80’s.

Interested in learning more? Check out the Bloomberg article for an even more informative look at where the housing market is taking us.

To help benefit the fund, the Carol Sund/Carrington Foundation will be presenting a comedy event at the Gallo Center for the Performing Arts called Laughing for Laci, October 11, 2008 at 8pm. Laci was a young and vibrant woman who had a beautiful smile and whose laugh was described as “contagious.” Her family and friends find it only appropriate that we commemorate her memory with comedy. “Come for the cause, Stay for the laughs.”

Laughing for Laci will be a night filled with entertainment. The event will be hosted by Larry King, featuring Colin & Brad and Wendy Liebman. Ticket sales and sponsorships will go towards The Laci & Conner Search and Rescue Fund. There will be a VIP reception held from 6:30pm to 7:30.

If you are interested in sponsoring the event or purchasing tickets, see the attached flier for more information.

Laughing for Laci Flyer

Thanks to Stacey Boyers for the news tip.

The Lodi Association of Realtors® is in its 86th year of operation. It serves a membership of more than 1,600 as a service and support organization to help individual Realtors® and Affiliates. LAR is a member of the California Association of Realtors® (CAR) and the National Association of Realtors® (NAR). LAR currently has four Directors that serve on the state association. It also is an Administrative Office for the Metrolist Multiple Listing service and currently has three directors that serve on its board. LAR operates a full supply real estate store which carries forms, all the necessary tools industry professionals require, and continuing education options for area licensees.

Congrats Pam!

And, “The longer people live, the greater the chances are that chronic conditions may develop, resulting in an increased need for assistance with everyday activities. (from National Alliance for Caregiving)

That means you – or your parents – could maintain good health and independence for many years. However, at some point, you may experience an injury or illness that leads to a need for long term care. An estimated 70% of people who reach age 65 will need some form of long term care before they die.

What if you had to care for an aging parent? How would it affect your practice?

Here’s the typical profile of family caregivers:
• Two-thirds of caregivers are women.
• Caregivers are twice as likely as non-caregivers to have health problems of their own.
• Working caregivers are more likely than non-caregivers to miss work.
• Women ages 50 to 64 are most likely to be caring for sick or disabled family members.
from (“A Look at Working-Age Caregivers’ Roles, Health Concerns, and Need to Support.” The Commonwealth Fund. Issue Brief. 08/05)

What if you needed long term care? What does long term care cost?
Long term care services can be very expensive. The national average to have a home health aide for 8 hours a day is $4,623 a month or $55,480 a year. With home care, you also have ordinary home and living expenses. The national average daily cost for a private nursing home room is $213, or $77,745 a year. And those numbers can be almost double in some areas of the country.

Long term care insurance can help you plan for the high cost of future care. You probably have health, homeowners, and auto insurance to help protect you from everyday risks. Now is the time to consider long term care insurance to help protect you and your family from the high cost of long term care.

Long term care insurance can help you:
• Protect your assets, investments, retirement funds and your estate – including your home
• Maintain your spouse’s standard of living, financial security, and peace of mind
• Relieve family and friends from the emotional burden of providing for your care
• Preserve your independence, allowing you to live where you wish
• Give you more choices and control over your future care
There’s a clear advantage to buying long term care insurance at a younger age. Premiums are typically lower than if you wait. You’re more apt to be healthy and qualify for coverage.

Discounts on long term care insurance are available to PMZ agents and staff.

PLEASE TAKE A FEW MINUTES TO VOTE FOR LAR 2009 OFFICERS & DIRECTORS.

The internet link and your personal numbers for voting are being sent to you again. You have until 5:00 PM, today, to cast your ballot.

Special “Thank You” to those members that have voted.

Click here to login to vote!

According to Nehemia’s website, the Department of Housing and Urban Development said that such down-payment systems will no longer be allowed after October 1st, 2008.

You can help keep this program alive for yourself and others by clicking this link. You’ll find a simple form where you can share your story on how Nehemiah has helped you (or would help others). The letter is then delivered to key members of the legislature and to the housing department.

Apparently there are 3 or 4 of them that live near by. They hop the fence during business hours to check out the people and for any extra food scraps people leave behind. “They really like white bread,” Richard said.

The birds are so docile that when called with food, they come right on over. Sometimes, they even sit right in front of the door, admiring their reflection in the glass.

Weird eh?

(via The Riverbank News)