Podcast: | Download

When you are thinking about investing in a foreclosure as a potential income property, there are a lot of considerations to keep in mind, says Paul Staley of Staley and MacArthur Real Estate Services. Not only do you need to look at your existing exposure to the real estate market – and, Paul reminds us, everyone who owns a home is in the real estate market—but you need to factor in things like your time horizon to hold or sell or investment. If you get into the real estate market, how many years will it take before you can get back out at a profit?

Other items for the pros and cons list—can you live with your renters? Can you take the time to meet with prospects on weekends and evenings, to check their credit, to take their phone calls when the plumbing blows up at midnight on a Tuesday? Do you have a good general contractor on call?  A plumber? Do you go the property management route, or juggle the job of keeping a rental operational all on your own?

There are lots of properties on the market, and prices of foreclosures look enticing—but do the math, and think through the cost of your own time before taking the plunge.

Because kids always seem to grow over the summer, the start of a new school year always means clothes shopping. And while buying new clothes may be good for the economy, it’s not so great for the planet. Take a moment and reflect mounds of packaging, used resources and old products thrown into the waste stream that result from buying new school clothes before you whip out that credit card.

The most eco-friendly approach is to reuse or repurpose clothing. But keep in mind: there are new safety rules for children’s clothes that require testing for toxic lead and phthalates. This national law, which took effect on February 10th 2009 and requires proof of testing, has hindered thrift store trade considerably. Any items for the under 12 set you DO find will have been tested.

So—how can you be kinder to the earth while clothing your kids? Here are some ideas:

• Look for products made from recycled, organic or sustainable materials. WorldofGoods.com is a helpful resource.
• Style-conscious teens actually like vintage threads. Concentrate on outerwear, shirts, jeans and accessories. Stores like Buffalo Exchange in Berkeley and Treasured in Palo Alto are popular. There are hundreds of shops listed online, so just Google or Yelp “Vintage Clothing” or “Thrift Shops.”  Be sure to examine all articles carefully for tears, broken zippers, missing buttons, etc. Defects can often be repaired, but you need to know what you’re purchasing.
• Let your teens raid your closet. Sometimes, the best vintage comes from hand-me-downs within the family. Some alterations may be needed, but this is a fun way to repurpose good quality clothing.
• If you buy online, reuse or recycle the packaging.
• Host a clothing swap. Work with your neighborhood, your church or your school’s parent-teacher organization and make it an event. Require that all clothes be freshly laundered, pressed or dry cleaned.

Resources:
www.ehow.com
www.the-coveted.com/blog
www.sustainablelafayette.net
www.nocopages.com

Podcast: | Download

Paul Staley points out in today’s interview that an investor looking for a foreclosure is well-warned to not to pay too much attention to the general market, but study the sub-markets that exist in each area.  If foreclosures are prevalent in an area, is it because too many of the buyers bought at the same time, for the same price, with the same kind of mortgage, and got caught up in the same financial mess as his neighbors?  Is it better to find neighborhoods where there has been more diversity in product, in types of ownership, and in equity over the years—and if so, how do you do the research to find these opportunities?

Obviously, Paul and his company, Staley and MacArthur Real Estate Services, have a format and formula for investment that makes sense in an umbrella acquisition strategy. Staley and MacArthur is backed by McKinley Partners, so having the ability to make good decisions quickly, and closing a deal just as quickly—often all cash—allows them to do their due diligence, make an acquisition, and get the house rehabbed and back on the market as a rental.

When asked for advice on researching foreclosures-in-the-making by tracking Notices of Default, Paul tells The Real Story the best way to find a good property:  “Pick the ones that have for sale signs in the front yard.”  In other words, one can spend a lot of time and effort researching promising leads on properties that have yet to come to market, but when a property is listed, there is big motivation to sell it.

You’re ready to buy a home and want to optimize your credit score.  You have a number of credit cards.  Should you close out the accounts? The Real Story’s review of online resources turns up a resounding NO!  Here are some points to keep in mind:

• Credit reporting companies want to see responsible use of credit and a good (and lengthy) credit history.  People with no credit cards have higher risk of being denied credit than those with a track record of managing credit.  So rather than close out the accounts, use them prudently and pay them off every month.
• If you have many cards—15 or so—closing them is not going to help you.  They’ll still show up on your report.  It’s true that having too many open accounts can hurt your score, but once they’re open the damage is done.  It’s the ratio between the available credit and what you’re using that counts.  Keep the accounts open, but keep the balances low.
• Know your limits and keep those balances under control.  Experts say consumers should keep their credit card balances no higher than 35 percent of their credit line.  Self-control is what the credit reporting companies like to see.
• Don’t move debt around from one card to another.  Work hard to pay down the debt.

Resources:
www.myfico.com
www.money.cnn.com/2006/07/10/pf/credit_killers/index.htm
www.bankrate.com

Podcast: | Download

Talking to Paul Staley from Staley and MacArthur Real Estate Services this week, The Real Story has the inside scoop on how real estate investors are looking at multiple acquisitions of foreclosed properties for short-term investment and long-term sales.

Take a listen to Paul as he talks about the type of real estate that provides more known factors from an investment standpoint—his real estate partnership is looking for post WWII properties, built in tracts, because of their very commonplace features—it is easy to determine what kind of features the house has—even from the street.  A house of a post-war vintage is easier to budget—paint, plumbing, electrical—than a older home that may have certain custom features that make it harder—and more expensive—to fix up.

Paul’s company, along with McKinley Partners, has put together a fund of several million dollars to locate, purchase and fix up residential properties, primarily in Eastern Contra Costa County.  Rather than purchase properties and look for a quick flip when the market shows early signs of stabilization, Staley and Associates is looking for homes that are worth investing in, to make them better places to live.  Then, as they fill them with renters for the short-term, they contribute to the stabilization of neighborhoods, as they move toward becoming neighborhoods for home ownership in the next three to five years.

To many of us who live in the Bay Area, the UC Berkeley campus is a valuable cultural and educational resource.  It also is a showcase for many of the foremost architects of the early 20th Century.  Classic Bay Area Architecture had its genesis here, and the campus still contains rare examples of Arts & Crafts, Victorian and Italianate styles.

The best way to explore the architecture of UC Berkeley is by foot.  You can take a guided campus tour—or leave your car at the structure on Channing Street for a few hours and go for a stroll through the heart of campus.  Here are just a few of the architectural treasures you’ll find:

Hearst Gymnasium (1927)
A collaboration between Bernard Maybeck and Julia Morgan, this Beaux-Arts complex combines influences from ancient Roman ruins with Baroque influences.  Interior and exterior spaces are blended into a unified and romantic environment. The marble outdoor pools provide a surprisingly glamorous setting for student recreation.

Faculty Club (1902)
Located in a wooded glade, the Faculty Club is an Arts & Crafts masterpiece.  Carved beams, wood paneling, arched windows, fireplaces, and stained glass, all exemplify the northern California aesthetic.  The building materials, decks and oak trees capture the era’s regard for nature.

Sather Gate (1910)
This iconic gateway to campus at the edge of Sproul Plaza was designed by John Galen Howard in the French baroque style.  It recently underwent a $1.5 million restoration project to rebuild structural elements and restore the bronze sculpture work.  The work was complete last April, so check it out.

South Hall (1873)
The oldest building on campus, this masterpiece of Second Empire institutional architecture was designed by Scottish architect David Farquharson.   The sole survivor of an original nucleus of Farquharson-designed buildings that comprised the original campus, South Hall features a mansard roof, unique earthquake-resistant brick-cell construction and decorative relief panels depicting California’s native fruits and grains (the building originally housed the College of Agriculture).  A popular campus legend that this building was used in the movie Mary Poppins is sadly not true, but Bert and his chimney sweep compatriots would certainly have felt right at home here.

Thorsen House (1909)
Not actually part of the U.C. Campus, Thorsen House stands majestically on “fraternity row” along Piedmont Avenue. Designed by Craftsman-era architects Henry and Charles Green, this residence was designed for Randolph and Caroline Thorsen as an “ultimate bungalow.”  Today, it is the Sigma Phi Chapter House and a true architectural treasure.  Exquisite woodwork, stained glass and tiles are a tribute to the Arts & Crafts sensibility.  The frat boys who live here are de facto historic conservationists and proud to show off the residence and talk about the ambitious restoration project underway.  To arrange a tour, e-mail questions@thorsenhouse.org.