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Archive for August, 2009

Guerrilla Marketing 101

August 24th, 2009 1 comment
Dennis Norman

Dennis Norman

By: Dennis Norman

Wikipedia defines “Guerrilla Marketing” as:

The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional; potentially interactive; and consumers are targeted in unexpected places.The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral 

Being a life-long entrepreneur and, often the “underdog” in the race, I have had to rely on guerrilla marketing tactics to promote myself and my businesses.  So, “having been there, done that”, I’m always impressed when I see good guerrilla marketing in action. 

Over the weekend I ran across a blog that highlighted, not only a great example of a business that acted upon a situation that was literally the textbook (well, wikipedia) example of a guerrilla marketing opportunity, but the story also contained a great example of another business that blew it and couldn’t have wasted the opportunity more.
I’m referring to a blog called DoctorWifeMom and the post was titled “A Tale of Two Managers”.  This was my first time to the site and while it appears to be a political blog of sorts.  In the header is the following statement;

“Blogging about life as a woman who wears many hats and lives in the red flyover states where we cling to our bibles and our guns and rely on hard work and ingenuity to make it”

However it was at this site I found a great example of guerrilla marketing.

Carolyn, the blogs author, wrote about a political rally she attended in St. Louis, Missouri which brought out a couple of thousand people.  the rally was held on, what sounds like, a busy corner with a shopping center across the street from the rally.  Being the best source of parking it appears many of the rally attendees chose to parking on the shopping center lot although the lot no doubt had signs posted that parking was for patrons of the shopping centers stores only.  Clearly some of the attendees, including Carolyn, did make a purchase from a business  in the center, but many did not. 

In the story there were managers of two businesses located in the shopping center that looked out onto the parking lot, saw all the “illegal parkers” as well as the crowd of people out front and took action.  One person responding was a manager of a major local grocery chain that does over $2 billion of sales in the St. Louis area a year (no doubt many of the rally attendees are customers) and his response was apparently not nice and was more combative than friendly.  The other response was from a manager of another business in the center; one Kyle Gilbertson, manager of Mr. Goodcents Subs and Pastas who took a different approach; he was friendly and nice to the 2,000 unexpected “guests” out front and had employees hand out coupons, food samples and so forth.  No doubt his sales that day were way above normal.  You gotta love it.  Carolyn’s story is much more detailed and complete and I would invite you to check it out by clicking here.

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House prices increase in June; House price increase from April to June largest in nine years

August 20th, 2009 No comments
Dennis Norman

Dennis Norman

By: Dennis Norman

Investors, get those check books ready, maybe it’s time to buy again?  Adding to the list of recent positive reports on the housing market and home prices is the Housing Market Report that was issued this morning by Radarlogic.  According to the report home prices increased in June from the previous month in 23 out of the 25 metropolitan areas tracked by their company.

Overall the composite for all 25 metros showed a 3% gain in price from May to June representing one of the largest monthly gains reported by RadarLogic since June 2000. There has been a trend of price increases reported for the 25 metro areas for the past few months. In fact, the increase in the Radar Logic Composite from February to June outpaced the house price gains over the same period during the previous threes years, and the increase in house prices from April to June was the largest since the beginning of Radar Logic’s date in 2000. radar logic

Read more…

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Commercial Real Estate Slowing; Apartments looking OK

August 19th, 2009 1 comment
Dennis Norman

Dennis Norman

By: Dennis Norman

Today the National Association of REALTORS(R) published their Commercial Leading Indicator for Brokerage Activity for the second quarter of 2009 showing a decline of 1.3 percent to an index of 101.5, down from an index of 102.8 in the first quarter. At 101.5 the index for the second quarter of 2009 is 13.7 percent below the 2nd quarter of 2008 when the index was at 117.6. The index is currently at the lowest level since the first quarter of 1994.

In reviewing NAR’s report, it doesn’t appear any of the sectors have been able to avoid a slowdown, below is a recap by sector: Read more…

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Foreclosures UP 32 percent in July from a year ago

August 18th, 2009 No comments

Foreclosure For Sale By: Dennis Norman

There just seems to be no end in site for the sickening numbers of foreclosures we are seeing take place in the housing market.  While, from an investors standpoint, it seems like a “positive” in that foreclosures often present a good opportunity for an investor to purchase property at below-market prices however it’s really a double-edged sword though as foreclosures drag down property values, which hurts an investor. Read more…

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Have you done a 1031 exchange? Did you check out the qualified intermediary?

August 17th, 2009 No comments
Dennis Norman

Dennis Norman

By: Dennis Norman

I personally have only done a couple of 1031 exchanges and it has been several years since the last one, but I will admit I did not do any due diligence when selecting the qualified intermediary.    Like many people, I went with the company that was recommended to me by the title company I was doing business with.

I was in a rush to get the paper work all completed before the sale of my investment property closed so everything was handled via email and fax.  I never met the person I was dealing with at the firm nor did I do any due diligence on him or his company.  It wasn’t until after the sale closed and the (my) proceeds were given to the intermediary that it finally hit me that I was giving this company a lot of cash to “hold for me” until I found another Read more…

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One-third of mortgages are underwater; Short sale opportunities abound

August 14th, 2009 No comments
Dennis Norman
Dennis Norman

By: Dennis Norman

It appears short sales are going to be here for a while, presenting opportunites for investors as sellers who are underwater on their mortgages with  lenders that realize it are going to look for viable alternatives to foreclosure.  Many investors have been actively pursuing short sales for some time now and according to a report issued by First American CoreLogic it sounds like there are plenty more opportunities out there.

According to the CoreLogic report, more than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, are in a negative equity position.  In addition, there are an additional 2.5 million mortgaged properties that are approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage. Read more…

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Incentives, Concessions, Tax Credits and Tax Abatements

August 13th, 2009 No comments

By: James R. MacCrate, MAI, CRE, ASA

In the current unstable real estate market, we hear reports from the National Association of Realtors and many economists that the real estate residential housing market is stabilizing.  This is based on several factors including recent price increases in several metropolitan markets, an increase in pending contracts of sale, and increase in overall residential market activity.  This may very well be a temporary illusion that has been caused by an increase in incentives, concessions, and the federal tax credit.  The Wall Street Journal reported that Toll Brothers, Hovnanian Enterprises and Lennar Corporation have provided below market financing and other incentives to increase the number of sales.  If adjustments are made to the transaction prices for these incentives, concessions and federal tax credit, one would clearly see that the market value as defined by the Uniform Standards of Professional Appraisal Practice has not really increased at all.

The typical definition of market value as defined in appraisal reports for federally regulated institutions is summarized as follows: Read more…

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The real estate market continue to show positive signs; Sales up in 39 states

August 12th, 2009 No comments
Dennis Norman

Dennis Norman

By: Dennis Norman

The good news about the real estate market keeps coming! Don’t get too excited yet, I don’t know that the worst of it is over yet, not sure if the “fat lady has sang” yet or not, but at least the reports lately on the market have been encouraging.

According to the latest report released today from the National Association of REALTORS(R), existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states.

Existing home sales (including single-family homes and condos) by state rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units in the second quarter from a rate of 4.58 million units in the first quarter. While an improvement over first quarter, the second quarter numbers are still 2.9 percent below the 4.90 million-unit pace from the second quarter of last year.

In all, thirty-nine states showed sales increases in the second quarter from first quarter and nine states had higher sales numbers for the quarter than a year ago. Read more…

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Where are the best investments in California and Florida?

August 11th, 2009 1 comment
Dennis Norman

Dennis Norman

By: Dennis Norman

Today SmartZip, Inc. released it’s first release of the SmartZip Top 10 Markets™, a list of top-rated cities most likely to yield above-average investment returns over the next ten years.  The markets are hand-picked by SmartZip’s analysts in conjunction with local market experts. 

 

smartzip, inc.Presently SmartZip, which just launched its public Beta site in June, 2009, rates over 15 million properties, including listings, foreclosures as well as non-listed homes, across California and Florida only.  However, these two states represent some of the most opportunity-rich markets for real estate investment.  SmartZip plans to roll out its ratings to all 50 states over the next year which will then give them the ability to highlight the best investment cities across the nation. Read more…

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Discrimination in housing; people with disabilities

August 10th, 2009 1 comment
Dennis Norman

Dennis Norman

By: Dennis Norman

When we speak of discrimination in housing it seems many people think of it only in terms of discrimination based upon race.  However, landlords and other property owners need to remember that the Federal Fair Housing Laws that make it illegal to discriminate in housing based upon race also make it illegal to discriminate against people based upon religion, sex, familial status or disability.

Recently I have noticed several cases involving discrimination in housing based upon a persons disability.  This area of the Fair Housing laws may be the most difficult for property owners to understand what is necessary on their part in order to comply.  The other forms of discrimination are a little more apparent; you cannot refuse to rent to someone based upon their race or color, sex, etc.  While this applies to people with disabilities as well, the laws also require that, in the case of persons with disabilities, you make reasonable accommodations to make your property accessible to them.  This is where many property owners seem to have problems. Read more…

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