Kentucky Derby, Gulf Oil Spill and Real Estate!

This weekend is one of the greatest weekends of the year; for two reasons.  The first reason is the power of nature through animals and the second is the power of nature . . . PERIOD!

The Kentucky Derby is one of the early marks of Spring.

Tomorrow marks the 136th running of the Kentucky Derby at Churchill Downs in Louisville, Kentucky. Also known as the “Run for the Roses” and “The most exciting two minutes in sports,” the Derby is synonymous with red carpet style as well as the official start of the summer social season.  Each year, the race draws locals, out-of-towners, celebrities and royalty alike. While most think the competition is on the track, those in the know would say the fashionistas in the stand always give the horses a run for their money.

But what we sometimes forget is the power of the horses.  The amazing speed and leanness of these incredible animals, is astounding.  Mother Nature is still number one in the animal kingdom.

This weekend also marks a potentially catastrophic accident involving nature.  This week, an oil spill in the Gulf of Mexico has been all over the news, and with good reason.  The Transocean Deepwater Horizon catastrophe is expected to eclipse the monstrosity that was the Exxon Valdez oil spill.

Wildlife, communities, and lives will be affected as 5,000 barrels of oil (which equates to 200,000 gallons of gasoline) are pouring into the Gulf region DAILY.

The coastal areas are threatened and already wildlife experts are working with birds and animals to clean them up.  The oil slick does a lot of damage to various forms of wildlife, and there are expected to be mass deaths of sea creatures.

The Tourist industry is expected to take a hit, especially if the gorgeous white sand beaches are covered in oil.  In addition, the oil is threatening a $2 billion industry in Louisiana and a $5 billion industry in Florida …Shrimping.

It is amazing how fragile our environment is and how we need to stay in touch with it and avoid these disasters, because it will come back to haunt us.

Real Estate is also a very fragile environment today; many lenders are very leery of frauds and are extremely strict with their guidelines.  As a result, sellers must make sure to give the appearance that the buyers are getting a good deal.  Conversely, buyers should not get too greedy and be committed to the transaction, once they sign a contract.  This, along with nature, is what makes the world go around.

We all need to live in harmony with nature and business and if we do it the right way, it will blossom all around us.  So, when you walk into an open house, pretend that all Earths systems are working properly, your bank account and stomachs are full.  This should bring a smile to your face and most importantly, keep your disposition smiling!  After all, there is plenty for everyone . . . especially in the United States.

See you Saturday between 12 and 4PM at my open house; just follow the signs!

Mike

Posted: April 30th, 2010 under Hot Tips, Real Estate News.
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Full Face Transplant and Real Estate!

MADRID — A team of surgeons has carried out the world’s first full-face transplant on a young Spanish farmer unable to breathe or eat on his own since accidentally shooting himself in the face five years ago.

It was the most extensive operation yet and the 11th known face transplant worldwide.

During the 24-hour surgery, doctors lifted an entire face, including jaw, nose, cheekbones, muscles, teeth and eyelids, and placed it masklike onto the man, Dr. Joan Pere Barret told The Associated Press on Friday.

Transplant experts hailed the surgery, carried out late last month at Barcelona’s Vall d’Hebron Hospital, as a significant advance.

“It is a breakthrough. They are pushing the envelope and I am very happy for them,” said Dr. Thomas Romo, chief of facial and reconstructive surgery at Lenox Hill Hospital in New York.

We live in an amazing world where breakthroughs are occurring on an almost daily basis.  From cell phone efficiency, BlackBerries and the new iPad, the world is seeing improvements exponentially. 

The same holds true for the age old investment of real estate.  You see today it is so easy to research real estate and find the property you want.  One of the bets ways is to go to www.MichaelDunn.comand click on “listings”, this will take you to the stock exchange of real estate.  If you click on “featured listings”, you will find homes that are not on the market yet.

In addition to that, if you send me an e-mail regarding foreclosures, I can not only help you find them, but I can buy one for you.

Yes, you read correctly, send me an e-mail to Mike@MichaelDunn.com and give me your criteria and I will find you a foreclosure.

Mike

Posted: April 26th, 2010 under Hot Tips, Real Estate News.
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MassSave.com, Earth Day and Real Estate!

In conjunction with Earth Day (everyday is Earth Day), the state of Massachsettes is offering rebates on your old appliances.  A sort of cash for clankpliances!  Interesting idea.  Here is the info below:

The MassSave Massachusetts Appliance Rebate Savings program began today, offering rebates to select Energy Star appliances purchased in Massachusetts. The MassSave Web sitehas been experiencing server issues all day as a result, but we have all the info you need to know to participate.The MassSave Appliance Rebate program officially lasts from April 22 to May 5, but you may want to act quick, as the rebates could go fast.

Products good for rebates include dishwashers, refrigerators, clothes washers, and freezers. The rebate ranges from $50 to $250 depending on the appliance.

On this Earth Day, Real Estate has a significant impact in that we can make our homes very energy efficient and last much longer.  In my 12 years in Real Estate, I have seen brand new homes age quickly due to neglect and just plain laziness.  I have also seen 40 year old homes look pristine like they were purchased yesterday, except for upgrades.

I have a 9 year old car with 200,000 miles on it, but it is so reliable because I have taken care of all the service every 3,000 to 5,000 miles.  It has some dents on the exterior and the drivers seat-needs replacement, but as a whole, I have treated it with respect and care and as a result, it is very reliable.

There is a trend sometimes to buy the latest and greatest, even when what you have works perfectly well.  In Real Estate, the same thing is true.  Let’s compare brand new homes to homes that are 15 years old.  In the area that I specialize, The Irvine Ranch in Southern California, the homes built in the early 1990s have cathedral ceilings and the latest HVAC upgrades that we still use today.  Minor changes like tank-less water heaters and upgraded Air Conditioning systems, can easily be added.  The thing that is hardest and most expensive to change, is the floor plan.

In www.NorthwoodPointeIrvine.com the floors plans for the homes feature cathedral ceilings and guest suites with their own bathrooms.  Many builders in the early 2000s, filled the cathedral ceilings with more square footage and as a result “closed” the entry areas, which gave the living areas more a light, bright and grander feel. 

In today’ s world of conservation many say that the cathedral ceilings are a waste because they increase the amount of energy used to heat or cool the property.  First of all, in choosing a home, the way it makes you and your family’s disposition feel is more important than conserving energy.  Especially in Irvine, the weather is very temperate with rare fluctuations.  As a result, the homes that are 15 years old compared to the 5 to 7 year old homes, have held their value by about 10 to 15% more.  This significant in the $1M price range.

Seems like buyers who want a million dollar home, want it to feel like one instead of a closed in box.  So when looking for real estate, look at the older homes but keep a strict discipline in your maintenance habits and it will pay you many dividends, especially when it comes time to put your children through college.  That extra $100,000 to $150,000 goes a long way!

Happy investing.

Mike

Posted: April 22nd, 2010 under Hot Tips, Real Estate News.
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Michelson, The Masters and Real Estate!

This years Masters Golf Championship was very enlightening and liberating.  Phil Michelson was the winner of the golf tournament, but his wife seems to be the real winner.  Michelson’s wife, Amy is in remission with berast cancer and her husband has supported her throughout her ordeal.  Michelson’s whole family was on hand to celebrate the golfm tournament but also FAMILY.

During a week when most eyes, ears and cameras were on Tiger Woods’s return, it was good to see the inmportance of family and health as the focus on the final day of the tournament. 

The end of the Masters was alos the beginning of Spring and the resurgence of the real estate market.  The past 2 months have seen several proeprties sell in less than two weeks in www.NorthwoodPointeIrvine.com including two large listings over $1.5M.  In November a Plan 3 in Arbor Crest sold for $1,500,000 as a short sale.  In march the same floor plan with a smaller lot and less desirable location, sold for $1,720,000.  In Novemebr a Plan 3 in RoseGate sold for $1,825,000 with agorgeous pool and spa.  This past week, the same floor plan without a pool and spa and a smaller lot, is in escrow at close to that price.

What a difference 4 momths makes.  Note that Tiger Woods in Novemebr was in some deep trouble and still may be, but with Spring comes a rebirth of mind, body and spirit.

Posted: April 12th, 2010 under Hot Tips, Real Estate News.
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The Masters Golf Tournament and Real Estate!

Well Spring is in the air!  This means that the Masters Golf Tournament in Augusta, Georgia is under way.  This year is particularly intriguing due to the Tiger Woods factor.

Spring also brings with it Real Estate.  This is the season where buyers and sellers start looking to make a move.  While the market in general is flat, there are plenty of buyers looking this year.  The combination of Spring time and better news on the economic front, is making people more decisive.

Certain price ranges, such as $800,000 and under, are very hot right now.  Mostly due to the $8,000 or $6,500 tax credit for qualified buyers.  As an example, our foreclosure group purchased a property for $675,000 at the courthouse and after rehabbing it, we sold it for $820,000.  An extra incentive for California buyers offers $10,000 tax credit for a buyer who purchases a newly constructed home after May 1, 2010 and before January 1, 2011.

So if you combine the Federal tax credit of either $8,000 or $6,500 (for being in escrow by April 30th and close by June 30th) with the California Tax Credit, a buyer could have an $18,000 tax credit by 2011.  On a $600,000 purchase, that is your FHA down payment!

Also, today an agent in my neighborhood listed a 2,600 square feet house for $550,000 as a ploy to get a lot offers.  The true market value of the property is minimum $900,000.  This price would not even come up at a foreclosure auction.   I have an open house across the street and saw a lot of disappointed people.  Although I must say, it did help my open house.

This theory of having a low opening bid is used at the foreclosure sales at the courthouse, however, the opening bids at the courthouse are generally no lower than 30% under the market value. 

Well, if you get this before 4PM on Saturday, come visit me at 20 Canyonwood - an amazingly upgraded home with hardwood floors, granite counters, two guest suites downstairs, 3 bedrooms upstairs with an option for a 4th bedroom in almost 3,800 square feet with a 3 car tandem garage.

Happy investing.

Mike

Posted: April 10th, 2010 under Hot Tips, Real Estate News.
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Easter, Califonria Earthquake and Real Estate!

See the earthquake details below and see my follow up:

Magnitude 6.9 - BAJA CALIFORNIA, MEXICO

2010 April 04 22:40:39 UTC

• Details
• Maps
• Scientific & Technical
• Tsunami

Earthquake Details

As you can see, a magnitude 6.9 earthquake is significant.  I was at home typing when it hit and it seemed to last about 20 seconds, which is a long time.  But before you start panicking, look at this map showing all the earthquakes in the US today:

Now having posted and said all that, where would you rather be out of the following choices:

1. Kansas City, Kansas where you are guaranteed snow and tornadoes?

2. Miami, Florida where you are guaranteed hurricanes, 85% humidity and tornadoes?

3. New York, NY where you are guaranteed snow?

or

4. Irvine, CA where you are guaranteed an average annual temperature of 78 degrees and sunshine 330 days out of the year, but a slight chance of an earthquake?

I vote for number 4!  And if you have voted for number 4, you will have enjoyed a 200% increase in your net worth over the pat 10 years.  In the other 3 areas, you will have enjoyed a 10% drop, a 30% and 80% increase in your net worth.

There is really no choice in this case.  The smart money is on Irvine, CA and specifically www.NorthwoodPointeIrvine.com or www.ThePelicanEstates.com .  If you want to search for some specific properties, go to www.MichaelDunn.com and see what is available.

Happy investing.

Mike

Posted: April 4th, 2010 under Hot Tips, Real Estate News.
Comments: none