Victor Allison and Dan Kennedy at The Glazer Kennedy Insider's Circle MasterMind Reception
March 17, 2010 | top of page

Being a student of Dan Kennedy's outrageous advertising that's outrageously successful I was delighted to personally meet the master himself before he spoke at the Glazer Kennedy Insider's Circle Chapter Meeting.

Dan Kennedy is internationally recognized as a Millionaire-Maker, helping people in just about every category of business turn their ideas into fortunes. He has been called the Professor of Harsh Reality because he's provocative, irreverent, sarcastic, and tells it like it is in a humorous, but chilling, serious fashion that cuts to the core of the issues in a way no other marketing guru does. Dan Kennedy's advice can be moved with remarkable ease from one very different field, industry, or profession to another with amazing success. He is a leading consultant in direct marketing, copy writing, internet strategies, and profit improvement systems. In addition, Dan Kennedy is the hidden genius behind full page magazine and tabloid advertisements you've undoubtedly seen in such notable publications like Success, Inc., Entrepreneur, Nations Business, USA TODAY, and The Wall Street Journal. Dan Kennedy's multi-step comprehensive direct-mail campaigns that he writes for himself as well as his clients have been received by tens of millions of people producing hundreds of millions in revenue. Although Dan Kennedy rarely speaks anymore, except for events sponsored by Glazer-Kennedy Insider's Circle or a few select engagements for private clients, he was formerly one of the most popular, in-demand speakers on direct marketing-related topics. For example, it was customary that in a single year he would address over 200,000 people, sharing the platform with other famous speakers such as former presidents Reagan, Ford, and Bush, Zig Ziglar, Tom Hopkins, Mark Victor Hansen, and many more.

Victor’s Insider Scoop on What Are QR Codes and Why Should You Care? …
February 10, 2010 | top of page

What, you don’t know! Don’t be embarrassed. I didn’t know either until last week when someone in my MasterMind Group brought them up. QR Codes, or Quick Response Codes, are two dimensional Barcodes developed by Denso http://www.globaldenso.com/TECHNOLOGY/tec-report/2001/html_version/31.html and released in 1994 with the primary aim of being easily interpreted by scanner equipment in manufacturing, logistics and sales applications.

Compared with other barcodes, QR Codes have several advantages:
(i) they can hold a very large capacity of numbers or letters in any language
(ii) their printout size can be very small
(iii) they offer high speed reading
(iv) they can be read from any side (omnidirectional or 360° scan)

So what?! Who cares?!! My real estate business can’t use them. WRONG! Read on …

According to Sean Bartlett, Director of Mobile Strategy for Sitewire http://www.sitewire.net, there are three times more mobile phones today than there are PCs making mobile marketing as important to businesses now as web marketing was in 2000. By 2013 more websites will be viewed on mobile devices than on PCs. Mobile commerce was $396 million in 2008; in one year that number had tripled to $1.2 billion! Hilton hotels are now booking over $1 million a month in reservations over mobile devices. How do you think these figures will be affected when the current 3G mobile network (operating at 2 MBPS) is replaced by a 100 MBPS 4G system? Do you have a .mobi website optimized for viewing on a mobile device? Do you now think you should?

Japan, the first country with a highly developed 3G network and high usage of the mobile internet, was also the country where telecoms like NTTDoCoMo and KDDI achieved a breakthrough by bringing QR code readers to mobile phones. By installing QR code readers on smartphones, it was suddenly possible for everyone to read QR codes and to connect easily to mobile sites.

Today, QR Codes are pervasive in Japan. You can find them in advertisements, mobile campaigns, on maps, in magazines, on billboards etc. and nobody wants to miss them anymore. The current QR Code revolution is comparable to SMS (text messages). It's simple to use, the cost of the connection to a mobile site is below the price of an SMS, and it's up to you to decide whether or not you want to scan it.

Immediately after hearing about QR codes I Googled them, found this website http://qrcode.kaywa.com/ and in about 5 seconds I had a QR Code for my website on my computer screen. I then went to the iPhone App Store and found a free QR reader appropriately called QR app and installed it on my IPhone. Figure about another 20 seconds. I then took a picture of my QR Code with QR app and presto my website appeared on my iPhone!

What’s my immediate use for this? Well for starters I am going to add a QR code to all my advertising signage. Then, when a broker is on a property I am marketing and they want more info, all they have to do is take a picture of the QR Code with their smartphone and they will be transported to a webpage that gives them all the info they need right there on site on their phone.

Here's the QR Code for my website. Find a reader app for your mobile phone and give it a try. I’m sure you will be as impressed as I was.

Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from your antiquated brokers who haven’t thought enough about you to tell you about QR Codes give me a call at 602-320-6200. I have many more innovative ideas I can implement to increase your bottom line!

PPS – I'd love to hear about your ideas for how you can use QR Codes in your business. Use my Quick Contact Form at the top of this page and let me know!

Victor’s Insider Scoop on Why You Should Copy Success Instead of Trying to Solve Problems …
February 1, 2010 | top of page

How much time do you spend trying to solve problems vs. scaling successes?

There was a good article in the February 16 issue of Fast Company written by Dan & Chip Heath: "Switch: How To Change Things When Change Is Hard". The article expands upon the topic of finding success within failure. Here is the link to the full article:
http://www.fastcompany.com/magazine/142/switch-how-to-change-things-when-change-is-hard.html?page=0%2C0&partner=homepage_newsletter
that contains some real world examples of how this actually has worked.

I've provided a brief synopsis below:
A task you are charged with fixing may appear hopelessly complex. However, there is an approach that can get results on even the toughest issues. It begins with locating a bright spot (something that is actually working even though in and of itself it does not appear to be the solution to the problem) and then cloning it (repeating or doing more of the same thing). You must ask yourself a question that sounds easy but is, in fact, extremely unnatural: What's working and how can we do more of it?

If you do the more comfortable thing and ask yourself, "What's broken and how do I fix it?", you'll run in circles. You'll spend a lot of time agonizing over issues that are true but useless to solving the task at hand.

Our left brain has a problem focus when it needs a solution focus.

In difficult environments, we'll be beset with problems, and paralysis by analysis will often set in.” In order to make headway we need to give explicit direction—show people where to go, how to act, what goal to pursue. That's why bright spots are so vital: Bright spots give us our recipe for action—and the hope that progress can occur.

If you learn to recognize and understand bright spots, you will solve one of the fundamental mysteries of change: What, exactly, needs to be done differently?"

If you are a manager, ask yourself, “How much time do I spend solving problems instead of scaling successes?”

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

What is BID & SAVE! and How Does It Work? – by Joe Holeva
January 24 , 2010 | top of page

Victor’s Insider Scoop on Fear and Learning in Entrepreneurship
January 10 , 2009 | top of page

What’s one key difference between an employee intent upon ascending the corporate ladder of success to a corner office and any entrepreneur or employee in a company led by an innovator? One patent disparity will be their impression of what the word failure might mean to their future success.

The ladder climber will view any failure they are implicated in as an impediment to their ascent. Failure is an event to be avoided at all costs by the employee. The fear resulting from this attitude is visible in their unwillingness to color outside the lines or to rock the boat lest it tip over with them visible at the helm.

Talk to any group of up-the-corporate-ladder types and mention the word failure and you will detect an almost-audible gasp. A mistake or setback is often a career-stopper or, at least, a roadblock to their ascent. For these cube-dwellers, aversion to risk and don’t take a chance and play it safe attitudes are seen as an antidote to a mistake that can derail the corner office train. Yet, talk to an entrepreneur or an enlightened CEO of a company who sees innovation and creativity as part of the path to profitability and long-term sustainability, and this person will talk positively about failure.

Mistakes and setbacks are seen as an unavoidable part of the journey on the road to success. Organizations, not just individuals, learn from mistakes and failure.

Boeing became a success in the passenger jet market with its workhorse, the 707, by learning from the mistakes it made with the Comet. The Comet was the first passenger jet to be extensively used in commercial air travel. By studying metal fatigue design mistakes made in the Comet that literally caused its wings to fall off in mid-flight, Boeing engineered “flex” into the wingspan of its 707.

Thomas Edison, who is acknowledged as one of the last century’s most prolific inventors, is not only well known for his inventive genius but also for his many failures. Even after he had a long track record of commercial success, Edison failed miserably later in his career trying to revolutionize iron ore processing. Undaunted, he kept trying for a dozen years until he finally found success in developing this industrial process. What we can take from success stories like Edison’s and Boeing’s is that the road to success is a journey with many parts. Some are positive and productive, and some are setbacks, mistakes and failures. It is not what we lose from the setbacks that count. It is what we learn and apply from mistakes to make future endeavors successful

Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from you antiquaqted brokers and are ready to thrive again give me a call at 602.320.6200. I hae many innovative ideas I can implement to increase your bottom line.

Victor’s Insider Scoop on How to Stay on the Cutting Edge of Everything …
January 1, 2010 | top of page

I’m hoping that many of you will already be familiar with this because it is by no means new. But, if you have not heard of TED you really need to check it out. TED is a small nonprofit devoted to Ideas Worth Spreading. It started out (in 1984) as a conference bringing together people from three worlds: Technology, Entertainment, Design. In essence TED consists of a library of short (15 minutes or less) riveting talks given by the world’s smartest, most insightful people on just about any topic imaginable.

Click on this link to go there – TED – Just don’t do it at work because you won’t get anything done.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on How To Weather The Commercial Real Estate Storm …
November 15 , 2009 | top of page

Here’s a few quick tips on what you can and should not do come out of the current downturn without only a barrel to wear:
1. Keep your tenants happy! Maintain regular contact (what’s bugging them?) and treat them with respect. Within reason, do whatever you have to do to keep them in your building.
2. Stay current with any ongoing maintenance issues including landscaping. You want your buildings to look good to new prospective tenants.
3. Keep abreast of local real estate news and deals. Reading my two newsletters is a good start.
4. Take your broker to lunch and ask her to keep you up to speed with what she sees happening in your trade area.
5. If you can buy more now jump in as just about everything is on sale. The bottom of the market only becomes apparent after it has passed.
6. Make sure you have a plan in place to keep your buildings financed while you weather the storm. You don’t want to wait and get caught with a loan you can’t refinance.
7. Stay current with your monthly mortgage check. Stay in touch with and, if necessary, negotiate with your lender. Remember, lenders don’t like surprises so if you see trouble on the horizon, have that difficult conversation with them as soon as possible.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Why, Even If You Aren’t Ready to Sell, It’s Not Too Soon to Start Thinking About Selling …
October 1 , 2009 | top of page

It will pay to have all your ducks in a row when you are ready to market your property for sale. It is not unheard of for a deal to die if critical due diligence materials are missing or for a buyer to exact a price reduction in order to close without a specific document. What may not be so clear is what this preparedness entails.

Before acquiring a property you should be aware of the terms and conditions of the loan you finance your acquisition with. An onerous yield maintenance fee comes to mind immediately which will preclude any deal with a TIC buyer. But what if there is a change in the control of a joint venture? If your partner wants to sell but you don’t will a change in the control of the
property trigger loan acceleration or require lender consent?

Does your idea of a sale mean you are going to sell the real estate assets or sell your ownership interests? Consider that your choice here will restrict the universe of prospective buyers since each buyer comes with their own specific needs.

Although I am loath to say this as a broker you may want to exclude one or two prospective buyers from a listing agreement. If a group has been contacting you every six months or so just to see if you are “ready to sell” you would not want to pay a full commission to a broker for contacting this buyer who can’t wait to get your property into his portfolio. Under the assumption that an electronic War Room will be employed to house the due diligence materials make sure it is stocked by individuals familiar with your documents. Problems are often encountered in these areas:

• Title policies and commitments and exceptions thereto
• Surveys that turn out to be site plans vs. engineer produced documents
• Incomplete leases and loan documents
• Outdated physical or environmental reports
• Estoppel certificates

Make sure the war room includes all the documents you would expect to find when you are the buyer.

Many federal and state statutes can affect a sale. These can include tax, securities, antitrust, labor and employment laws. Make sure your legal counsel is familiar enough with your business to know if any of these issues will come into play.

A final area of concern peculiar to these specific times is financing. If the offer is contingent upon the buyer obtaining new financing are the buyer’s expectations realistic? There is no point considering a LOI contingent upon loan terms that are just not available in the marketplace. In conclusion, remember that although you cannot anticipate the requirements of every possible buyer, the time you spend on the front end preparing for a buyer’s reasonable requirements will pay off during the escrow period.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on What IRS Auditors Look for When Examining a Business …
September 15 , 2009 | top of page

When an IRS auditor shows up in your office be aware that they are there not just to examine your return—they are also there to examine you. If there is a disconnect between your reported income and the perceived economic reality of your appearance and surroundings you can expect the auditor will raise a red flag. Tax attorney and author Fredrick W. Daily states that the IRS is likely to investigate these eight areas when your small business is audited:

(i) Is your reported income congruent with the lifestyle the auditor will infer from your clothes, rings and watch, auto, or office furnishings? If you look like a Wall Street investment banker but have the tax return of a Walmart cashier you can bet the auditor will be sharpening his pencil.
(ii) Do your day–to–day operations involve a lot of cash transactions? If yes, you can expect the auditor to suspect that some of it gets into your pocket before it goes on the balance sheet.
(iii) If you only have one car and you write off auto expenses auditors will not believe that you use public transportation for all of your non–business transportation needs so don’t even think about claiming 100% of auto expenses. And, if you are more prudent and claim a high percentage of business auto use, then your best defense will be to keep a detailed mileage log.
(iv) Travel, entertainment and vacation business expenses are also likely to receive close scrutiny. Be sure to keep records for all claimed travel and entertainment deductions. Going to a hockey game with your brother in law and trying to claim it as a business expense will be scrutinized if you can’t explain his relationship to your business.
(v) If you have unreported business income of $10,000 or more you will need professional help to untangle the mess you’ve gotten yourself into. Your best move will be to hire a professional tax consultant, step back, and let him handle it for you.
(vi) It could get ugly if the auditor discovers what appears to be large amounts of unreported income. The IRS has a criminal investigation unit.
(ii) If you have employees you can count on an audit of your payroll tax returns. Make sure you file quarterly payroll tax returns and make the required tax payments.
(iii) Finally, if you use independent contractors (because of the tax savings compared with true employees) are those people really employees masquerading as independent contractors? Having a high percentage of independent contractors will result in a closer look by the auditors.

Although this is a list of areas most likely to be investigated by an auditor it is not comprehensive. If you find yourself being audited by the IRS be sure to inform your accountant and/or tax attorney and ask them what you need to do to be prepared.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on How To Present Like Steve Jobs …
September 1 , 2009 | top of page

I watch all of Steve Jobs’ keynote presentations for three reasons: 1. I have never owned a PC—I have always used Apple computers, 2. I own Apple stock (which is up 123% this year thank you very much), and 3. Because Steve Jobs is a master presenter. So even if you don’t fall into categories 1 and 2, you should watch Steve Jobs for reason number 3 and learn from the master.

What is so magic about the sales job Steve does while on stage? Let’s review. Not only does he have great content with amazing new products and narrative to promote them but he also has great style. He achieves this style partly by 1. maintaining great eye contact 98% of the time. He does not look over people’s heads but physically looks at specific groups or individuals and makes very strong eye contact with them. He can do this because there are very few words on the presentation screen behind him so there is nothing on the screen for him to turn around and read. Most presenters will actually turn their back to their audience and read what is up on the screen. Steve will never do this.

2. He rehearses multiple times over several days so he has great confidence in his material and never reads from note cards—nothing is left to chance—so he can maintain eye contact. Even during a product demonstration when he needs to sit down at a computer screen to start the demonstration, he only spends brief moments facing the screen before looking up at his audience and explaining what is on the screen.

3. He maintains an open posture throughout his presentation. There is nothing between Steve and his audience. You will never see him with his arms folded across his chest, he never has his hands in his pocket, and he never speaks from behind a lectern. He uses a wireless mike and walks around the stage with no barriers between him with his audience.

4. He uses effective, demonstrative hand gestures that match his words. So if he is introducing a big, new product his arms will be spread in an expansive gesture; conversely, if he is talking about a tiny new chip used in an Apple product he will pinch his fingers together and squint to emphasize its small size. Steve uses a hand gesture of some kind to punctuate just about every sentence.

Want to see a classic Steve Jobs presentation? It’s now a bit dated but watch him introduce the iPhone at MacWorld2007 — then click on the Watch iPhone Introduction button.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Travels to Desolation Sound by Boat …
August 15 , 2009 | top of page

After returning to West Vancouver from New Denver, Elliot and I joined my friend Gerry and his two children on his boat Cheerio and headed out to sea. Our destination: Desolation Sound Provincial Marine Park which most yachtsmen regard as the most beautiful cruising ground in British Columbia, and one of the premier sailing playgrounds in the world.


In fact, every other yacht in Desolation Sound was flying the Stars and Stripes and appeared to be from Washington State. This was Elliot’s and my fifth consecutive year crewing on Cheerio and our second trip to Desolation Sound. Desolation Sound, being about 100 nautical miles north of Vancouver, meant our first port was Secret Cove, a marina and hamlet of cottages along BC’s famous Sunshine Coast. A twenty minute ride on Cheerio’s inflatable (think Zodiac) from Secret Cove is Thormamby Island which has a sandy beach and warm waters. Interestingly, the double-sided beach is cut in half by the rising waters at high tide

Route from Vancouver to Desolation Sound & Rebecca Spit

We left Secret Cove the next morning and continued the trip north up the coast to Desolation Sound. After a brief stop in Lund to refuel, top off our water tanks and ice chests, we found ourselves anchored in Tenedos Bay about eight hours after leaving Secret Cove. Like Prideaux Haven where we anchored last year, Tenedos Bay affords boats protected mooring and offers their inhabitants the ability to boat to shore in their inflatables and take a 15 minute hike to Unwin Lake a warm, freshwater lake for swimming.

After spending a couple of nights in Tenedos Bay we ventured a further 20 miles deeper into Desolation Sound and anchored at the end of Pendrell Sound which has a wild oyster spatfall monitoring station. We took advantage of the abundant oysters clinging to the shoreline to supplement our dinners.

Fresh oyster from Pendrell Sound

From Pendrell Sound we took on more fuel and supplies in Refuge Cove before heading over to Rebecca Spit Marine Provincial Park on Quadra Island.

Our final day on the boat was spent in the heaviest seas of our trip as a result of an abnormal southwest wind blowing up the Straight of Georgia. After docking in Secret Cove we drove back to West Vancouver ending our adventure where we began it fifteen days earlier.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Travels to Interior British Columbia …
August 1 , 2009 | top of page

I flew to Vancouver with my ten year old son, Elliot, borrowed a friend’s Mazda Miata ragtop,

and headed off on a 11 hour, 720 km road trip to New Denver in the Slocan Valley of interior British Columbia.

Route from West Vancouver to New DenverSlocan Lake and The Valhallas

Why New Denver you may ask? In a previous life I worked at the Chateau Lake Louise in Alberta. Many of my friends from the Chateau moved to New Denver after leaving Lake Louise. This was in the late ’70s. I had not seen these people in 30+ years. It was time to reconnect with characters with pseudonyms like Honey Bear (Glen Palmer), The Great Burtoni (Richard Burton), Philthy Phil (Phil Milburn), The Beautiful Susan Applebee, DB (Dave Bruce) and Ozone (Rick Owens). Despite the years it’s funny how one can quickly reconnect with people with whom you have a shared bonding experience.

New Denver is a former mining community of 600 on the eastern shore of Slocan Lake in the midst of the Selkirk Mountains. The mountains on the western shore are called The Valhallas which aptly depicts their grandeur and tranquility.

Slocan Lake and The Valhallas

One attitude of my friends and most residents of New Denver is one that we technologically-dependent city dwellers will find strange: they oppose bringing cell phone service to the area. In fact, a standing joke amongst the residents is that it is easy to spot tourists in the street. They are the ones engaged in a fruitless activity: wandering around with cell phones in their hands searching for a spot in town where they can get some bars showing on their displays!

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Commercial Investment Real Estate Word of The Week: Estoppel Certificate
July 24 , 2009 | top of page

Commercial Investment Real Estate Word of The Week: Mortgage Backed Securities
July 19 , 2009 | top of page

Victor’s Insider Scoop: Commercial REOs Starting To Shake Free From Lenders
July 16 , 2009 | top of page

If you are a commercial real estate investor you may remember receiving an email from me several months ago asking you to send me your acquisition criteria for commercial REOs product types you are interested in buying.

Unfortunately, my request was a bit premature as lenders were not readily forthcoming with assets they had foreclosed on. That is now beginning to change.

I am tracking 70+ lenders in Arizona and am beginning to see more and more lenders willing to discuss both troubled properties and properties they have foreclosed on.

If you are interested in acquiring commercial REOs in Arizona and you remember responding to my email solicitation you need not do anything; I still have your acquisition criteria in my database and you will hear from me when I find something matching the property types you previously described to me.

BUT, if you are unsure or if you know you did not send me your acquisition criteria, or if your parameters have changed in the past 6 months then contact me via the Quick Contact Form at the top of this page.

Let me know what property types you are interested in, your minimum/maximum price range, your available cash, and any other parameters you believe are important and I will add your criteria to my database. When I find a match you will hear from me.

Interested in being one of the first to be notified of the REO opportunities I find? Then contact me via the Quick Contact form at the top of this page or at 602.320.6200 and ask about how you can join my elite Inner Circle of Investors.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Commercial Investment Real Estate Word of The Week: Letter of Intent
July 11 , 2009 | top of page

Commercial Investment Real Estate Word of The Week: Gross Lease
July 3 , 2009 | top of page

Victor’s Insider Scoop on Surviving The Recession ...
July 1 , 2009 | top of page

We are in a recession and the government is doing crazy things. Is Obama’s bailout working? Each side of The Aisle will have a different opinion on this question. My answer is Maybe but Maybe Not. Would we be better off today if the government had done nothing? Maybe, but maybe not. Neither I nor any expert can say with any certainty. It’s like trying to prove a negative.

The one thing you should not be doing is panicking because it's very possible for you to not just survive the recession but thrive during it.

So what can you do? Here are 3 things to get you started:

1. Don’t get paralyzed by what’s going on. Investors keep telling me they are keeping their money on the sidelines waiting for a sign that real estate values have hit bottom. But, no one can tell me what that sign is or, if they have an opinion, it is sure to be different from every other investor’s opinion. And clearly not every investor’s opinion can be right. So fear (fear being a very strong motivator) has investors convinced that the smart thing to do is hunker down and wait things out. But, like trying to time the stock market, by the time investors realize the bottom is here it will have passed them by and substantial profits will be left on the table. This may be especially true right now as many pundits are predicting a long, flat bottom to this recession so its end will not be demarcated by a sharp uptick. So if you’re sitting on the sidelines and waiting, your business is frozen. And if your business is frozen, your business is dying.
Now is not the time to do nothing. Now is the time to do something like marketing and lots of it. This is, in fact, an excellent time to be marketing because your competition is likely frozen with fear so you have a great opportunity to solidify your position and take deals away from your competitors.

2. Work harder. If your business isn't where you want it to be, rather than shutting down or doing less, do more. Maybe that means hiring someone to create a marketing campaign, or getting some systems in place to give you more time to focus on other things, or you get your hands dirty doing things you wouldn't normally do, or looking at more deals. You should be doing more right now rather than doing less.

3. Fix fundamental flaws. The recession is exposing flaws in business models that were always there. It’s just that during the boom years businesses were making money despite their flaws. So don't panic, don’t shut down, and look at the recession as a once in a lifetime opportunity. If you're able to fix problems in your business your business will be that much stronger when the recession ends.

Again, the most important thing to remember is don't panic. With your wits about you, you not only will survive this recession, but thrive during it.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Saving Your Property From Going Back to the Lender …
June 1 , 2009 | top of page

Have your tenants done a midnight move or told you “Lower our rents or we’re outta here!” Is your income now less than your loan payment? Is the loan on your commercial real estate coming due and your lender has said “No Way!” to a renewal or a line of credit that could get you through desperately needed lease up, tenant improvements, or renovations? Are you an out-of-state owner with local, service providers that don’t talk to each other, know what the other is doing, or even how to fix your problems? Is your pillow covered with hair because you’ve been pulling it out as you lie awake every night wondering what to do? Are you ready to mail the keys back to the lender and walk away from all of your hard-earned equity just to eliminate the stress?

If you’ve answered “yes” to any of these questions, I’m pleased to announce that PRAEDIUM Advisors has become affiliated with VALUE ADDED PARTNERS and we’re here to help!

Who We Are
Value Added Partners (VAP) is a team of proven real estate professionals working in concert in all facets of the commercial real estate industry.

What We Do Differently
VAP is not simply a “team” of brokers all trying the same, tired marketing campaign everyone has seen time and time again. VAP’s team works together in a coordinated fashion across multiple disciplines to formulate a strategic plan to stabilize and enhance your property’s value and then implements that plan in order to keep your property in your hands and save your equity. We provide consulting, strategic planning, property management & expense controls, aggressive leasing and sales marketing campaigns, auction services, tenant retention, repositioning, zoning changes, accounting, legal, architecture, TIs, cost segregation, new construction, construction modifications, and parcelizations, all under one convenient umbrella.

What Are Your Benefits?
VAP develops and implements a strategic asset management plan designed to maintain and enhance the value of your commercial real estate assets. VAP treats its clients’ assets as if they were our own. Rely on our full service team of professionals whose industry know-how can maximize your property’s value.

Who Can Benefit?
• Owners looking for a fresh perspective and strategic direction
• Absentee owners of Phoenix area commercial real estate that need a full service team on the ground
• Owners being forced to hold because of market conditions
• Owners on the path to foreclosure
• Owners unhappy with the performance of their existing service providers

What’s The Cost?
Comparable to what you’re currently paying to service provider or brokers who are not getting the job done and substantially less than what you stand to lose if your lender forecloses.

How Do I Get Started?
It’s simple and risk free! VAP provides a free, confidential, no obligation property evaluation that outlines opportunities to create greater asset value now and in the future. If you like our recommendations, VAP will provide you with a written cost estimate to execute those portions of the strategic plan that you want implemented.

Contact the VAP team today at joe@valueaddedpartnersaz.com or 602 466 2326 or www.valueaddedpartnersaz.com for a FREE Consultation.

P.S. – Value Added Partners will NOT engage more clients than it can successfully represent so contact us today at 602 466 2326 BEFORE our pipeline gets filled up and we have to put you on our Wait List.

P.P.S. – Can you afford not to make this call? Your lender will not wait while you continue to do what you’ve been doing while hoping something changes!

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Getting A Deal Closed In This Market …
April 1 , 2009 | top of page

To buy or not to buy that is the question. Sellers are remembering the halcyon days of only 18 months ago when they were in the driver’s seat and could pick and choose amongst competing, above–list–price offers from well–qualified buyers. The current marketplace has brokers facing frustrating listing situations when dealing with those same sellers who are now reluctant to budge on their price expectations in the face of current market realities while, in the back of their mind, they are worrying about whether prices will continue to fall.

On the other hand buyers are questioning the capital markets and are leery about whether property values will continue to decrease after they buy a property rendering the buyers upside down.

Loan underwriting has been getting more and more conservative from lenders who, if they will lend at all, have fewer dollars to lend and are offering lower loan–to–value loans at higher interest rates.

In order to get a deal closed on the contract terms I recommend that buyers have their financing lined up before they make an offer and that sellers verify that the buyer has achievable financing before they sign the contract. In the event that a lender elects to re–think loan terms mid– contract (that would never happen would it?) and the buyer is forced to re–trade here are my recommendations to try to save the deal:

1. Get everyone in the same room and revisit the objectives of all parties. Was the buyer expecting a minimum IRR? Why is the buyer interested in the specific asset? Why is the seller selling?

2. How can the loan terms be changed to help the buyer achieve their objectives? Is an interest–only loan feasible?

3. Push the deal envelope to get to the objective of a closed sale by having all parties lay their cards on the table. Having the parties meet will avoid the possibility of any miscommunication between them resulting in a higher probability of a workable deal. Be proactive looking for solutions.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop: A Refresher Course on Title Insurance
March 15 , 2009 | top of page

Being an experienced real estate investor you have purchased title insurance on your real property acquisitions. You probably do this reflexively without giving it a second thought. But why do you need title insurance and what really is it? This month?fs Insider Scoop comes courtesy of David Miller of Chicago Title. Dave's extensive experience can guide you through tricky title issues. Reach him at 602.667.1030 or millerds@ctt.com.

Title insurance plays an important role in most real estate transactions, from the simplest home purchase to development of a regional multi-use facility. All too often, buyers, sellers and brokers are called on to make complex title decisions without fully understanding what title insurance is, and what it isn't, which benefits it provides, and which it does not. This article is intended to briefly address some of these issues in a straightforward question and answer style.

What is title insurance?
A title insurance policy is a contract under which the insurance company agrees to indemnify and defend an insured up to the face amount of the policy if certain specified defects in title arise. A title insurance policy is not an absolute representation that title is "clean," and that no liens or encumbrances exist.

Why is title insurance important?
In order to provide the buyer and the lender with assurances regarding title to the real property being acquired and/or financed, it is necessary to conduct a search of the public real estate records. While this search could be done by anyone (and in many states, this function is performed by attorneys), in Arizona it is left to title insurance companies. Delegating this responsibility to a title insurer benefits both the seller and buyer as it relieves the seller of the obligation to make representations of title, with the potential for liability if his representations are incorrect. It allows a buyer and lender to receive assurances of title from a licensed, regulated, fiscally strong company, rather than a seller who may move, die or be without sufficient assets to address the problem.

What is a preliminary title report?
A preliminary title report is a document prepared by the title company setting forth the state of the title that it is prepared to insure. The preliminary title report will identify the current record owner of the property, the property’s legal description and the liens and encumbrances that the title company will assert as exceptions to coverage. The preliminary report is not insurance, and may not be relied on by the recipient. Instead, it is simply an offer by the title company to provide coverage under particular terms and conditions.

What should a buyer do upon receipt of the preliminary title report?
Upon receipt of the report, the buyer must carefully consider all exceptions to title, and ask that any items potentially affecting the buyer’s use or the value of the property be deleted. For example, a title search may disclose an easement that allows an adjoining landowner rights of usage on or passage over the property. If the easement impairs the buyer's proposed use, the buyer may wish to terminate the transaction.

What are the types of title policies?
The two principal forms of title policies are the Standard policy and the American Land Title Association (ALTA) policy. Very generally, the difference is that the Standard policy only provides very limited insurance against defects, liens and encumbrances which are not part of the public record, while the ALTA policy includes greater coverage against several (but not all) off-record matters. For example, encroachments on to a neighboring property should be covered under an ALTA policy, but not under a Standard policy. Since an ALTA policy is more expensive and may require a survey, it is not always the best choice.

What coverage is provided under a Standard policy?
A Standard owner's policy insures the buyer against damages arising from the following matters: (i) the property not being vested in the buyer’s name; (ii) the existence of recorded liens which the title company fails to list as exceptions to title; (iii) various title defects, such as forged documents, fraudulent transfers, or transfers by bankrupt or incapacitated persons; (iv) unmarketable title; or (v) lack of access to the property. In addition, a Standard lender’s policy insures against the unenforceability and priority of the lender’s security interest. CAUTION: The Standard coverage is subject to various exclusions and limitations, which should be reviewed with legal counsel.

What coverage is provided under an ALTA policy?
The ALTA policy provides the same coverage as the Standard policy plus protection against (i) mechanics liens and assessments; (ii) items disclosed by a survey, such as the correctness of a legal description and encroachments from a neighboring property; and (iii) many unrecorded liens and encumbrances, but not all. (For example, an ALTA policy would not cover an unrecorded lease where the buyer knew of the lease but failed to tell the insurance company.) CAUTION: Each title company issues its own version of the ALTA policy, with coverage that may be different from that discussed here. The only way to confirm the adequacy of the insurance being purchased is by a careful review before the policy is issued.

Who pays for title insurance?
Allocation of title costs is a matter of negotiation between the parties. The customary practice in Arizona is for the seller to pay for a Standard policy for the buyer, and for the buyer to pay any costs associated with upgrading to an ALTA policy or obtaining a lender’s policy. Imposing this cost on the seller is justified, since it relieves the seller of the potential liability associated with having to represent the state of title. CAUTION: Even with title insurance, a seller is still obligated to disclose material information in his possession that may adversely affect the value of the property.

How much does title insurance cost?
While the cost of title insurance is not regulated and will vary by insurer, most title companies price their products competitively. Each company is required by law to publish a rate schedule, which can be obtained before a company is chosen. As a very general guide, $200,000 of ALTA coverage will cost less than $1,000, with a lender’s policy costing another $350; $500,000 of ALTA coverage will cost approximately $1,600, with a lender’s policy costing another $650; $1 million of ALTA coverage will cost approximately $2,700, with a lender’s policy costing another $1,100.

How long does title insurance last?
Once the premium is paid, protection under the policy will last as long as the insured owns the property. The coverage may even continue after a sale, such as where the owner sells the property and carries back a note. Coverage may also continue to protect persons who receive the property by operation of law (such as by inheritance). CAUTION: The policy may not continue upon a transfer to a trust or partnership, without an additional endorsement, even where there is no consideration for the transfer.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on 21 Secrets To Make Sure Your Surveyor Includes In Your Next A.L.T.A. Survey …
March 1 , 2009 | top of page

1. Is there an accurate north arrow on the survey?
2. If there are any symbols not described in a key or if there is any information you don’t understand, consult with the surveyor.
3. Does the survey contain any undedicated roads? If yes, investigate further as this may support a third party’s claim of access through the property.
4. Does the survey show any fences? Fences are rarely exactly on property lines and may presage adverse claims, boundary-line problems, or agreements contrary to title information. It may be necessary to obtain a boundary-line agreement with adjacent property owner(s).
5. Does the survey have overlapping easements or improvements that overlap any easements?
6. Is the survey stamped with surveyor’s professional seal? Did the surveyor sign across his seal?
7. Is the area of the tract surveyed stated on the survey? (esp. if the contract purchase price is calculated from the area or if permitting the property for planned uses requires a minimum area).
8. Does the legal description on the survey match the legal description in the title report?
9. Is the surveyor’s inspection report and certificate included?
10. Are building setbacks in compliance with any protective covenants? If not, a waiver may be required.
11. Is the survey classified? (if state has minimum standards requirements.)
12. Is the address on the survey the same as that given by the lender? Any street names should match those in the recorded subdivision plat.
13. Is the survey is dated?
14. Are there any improvements on the surveyed property that encroach onto an adjoining property? This condition may result in litigation from the adjacent property owner; an encroachment agreement may be required.
15. Is Flood-Zone Certification stipulated? (Zone A: usually needs flood insurance; Zone B: the lender may require flood insurance; Zone C or X: flood insurance is not required.)
16. Does the survey show any gaps or spaces between parcels thought to be contiguous? These conditions may prevent the owner from developing the property as anticipated.
17. Carefully review all of the surveyor’s Notes. Are there signs of any unexpected or unauthorized uses of or conditions on the property? The existence of wetlands, historical, or archeological sites may be cause for concern. Any agricultural uses may be a sign of possession inconsistent with record ownership. If any of these conditions exist, contact the surveyor and, more importantly, the appropriate governmental agencies.
18. Are easements and other matters listed on the title report shown on the survey? Are there easements shown on the survey that are not listed in the title report? These issues may harbor potential litigation or they may interfere with a development plan.
19. Does the surveyed property have direct access to a public street? If not, is there a recorded easement shown on the survey that provides access to a public street?
20. Are there any improvements from adjacent properties encroaching onto the surveyed property? Any such encroachments might result in litigated claims to a portion of the surveyed property; an encroachment agreement may be required.
21. If the survey shows any unusual conditions or problems, the surveyor may require the client to execute a survey acceptance letter.
Bibliography: Real Estate Closing Deskbook, 2nd Edition – A Lawyer’s Reference Guide & State by State Summary; pp38-39, by K.F. Boackle.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Where Are The Commercial REO Deals? …
February 15 , 2009 | top of page

Skimming the deals done during the first two months of 2009 I am taken aback more by deals I perceive to be missing versus details of deals that have closed. I have spoken to several investors during the past few months about their acquisition criteria and there have been a few common threads: there is a lot of cash sitting on the sidelines waiting, no one is convinced the bottom is at hand, and everyone thinks foreclosures on commercial real estate backed notes will be as bad as those continuing to hit the residential market. So where are the documented commercial sales from lenders? Nowhere to be seen. Yet.

I have had some clients write offers to lenders to buy notes on commercial properties currently in default. The lenders?f responses were: Thank You But Not Interested. And no, these were not vulture offers but reasonable proposals reflecting the current market and allowing for lengthy hold periods.

Everyone thinks that will change. Soon.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Unlocking the Housing Market Recovery …
February 1 , 2009 | top of page

This month’s Insider Scoop is not of my own making. It consists of two videos. The first explains the cyclical nature of housing. The second contains predictions about what needs to be done to stabilize the current real estate market. They come courtesy of John Burns Real Estate Consulting a housing market analysis and consulting group based in Irvine, CA.

Here are the links:
www.realestateconsulting.com/VideoContent.aspx
www.realestateconsulting.com/video/housingrecovery.aspx

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Why Printing Money Causes Inflation (with a really scary ending) …
January 1 , 2009 | top of page

The Quantity Theory of Money states that if money supply increases faster than real output then inflation will occur. Since I am not purporting to be an economist let’s use a simple example to see how this theory works:

Let’s say the economy produces 1,000 widgets, the money supply (the number of dollar bills printed and in circulation) is $10,000 and the population of the country is 10,000 (so each person has one $1 bill). The average price of a widget is $10,000 / 1,000 = $10. Now suppose that the government prints an extra $5,000 dollar bills creating a total money supply of $15,000 but that the output of the economy remains constant at 1,000 widgets. Effectively, each person has more cash since $15,000 is now being shared by the 10,000 people (each person has $1.50 vs. $1.00). But, because each person has $1.50, they are now willing to spend more to buy that same widget.

The price of the 1,000 widgets will increase to $15,000 / 1,000 = $15 each vs. $10 previously. The price has increased but the number of widgets has stayed the same. The people have more money ($1.50 each) but they are not better off because widgets now cost $15 each so the value of their money has decreased; e.g. each $1 bill buys fewer widgets than it used to.

If the money supply is increased and the number of widgets produced stays the same, the widgets will become more expensive. Simply, if output increases by 5% and the money supply increases by 7% then inflation will be roughly 2%.

So, if you have bought in to the Quantity Theory of Money even a little bit (for there are competing theories like Keynesian analysis) here comes the really scare part.

The graph below comes from The Federal Reserve Bank of St. Louis

The thin blue line shows the number of dollars printed over time; the grey shaded vertical bands denote periods of recession. As you would expect, the line has trended up from the inception date of 1918 and begins to steepen its climb after 1970. But look closely at what happens in mid-2008: the line goes almost vertical and more than doubles from $800± billion to $1,700± billion!

That’s a lot more dollars in circulation at a time when the country is producing a lot fewer widgets. A period of inflation may be at hand.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on [Name Brand] Retailers Closing Their Doors in 2008 & 2009 (so far) …
December 10 , 2008 | top of page

The retail bloodbath that started in 2008 will most assuredly continue well into 2009. If not gone forever (Bombay, CompUSA, Mervyn’s, Linens ‘N Things) many others may soon be missing from your neighborhood mall as retailers perform triage on underperforming locations hoping to stem the flow of red ink in their annual reports. The Darwinian death of weak, sluggish and redundant retailers (what is the difference between a Circuit City & a Best Buy anyway?) may provide unprecedented opportunity for the return of the independent, niche retailer prepared and positioned to step up and provide exceptional service. Although market demand may be temporarily diminished the reduction in the supply of unexceptional, name-brand retailers will eventually result in increased sales volumes and profitability for the retail survivors.

The list of closings follows on the next page. Maybe some of your favorites are on the list. But I really doubt that you will miss them 12 months from now. You will have found other outlets to buy everything you need and I bet they are no farther from your home or office than your current favorites.

Here’s the list:
• Movie Gallery (378)                        • Sprint/Nextel (125)                   • Ethan Allen (12)                   • Talbots Kids/Mens (78)
• Dell (140)                                         • Friedmans (120)                        • Pier 1 (25)                             • Sigrid Olsen (54)
• Home Depot (15)                            • Eddie Bauer (29)                        • GAP (85)                              • Ann Taylor (117)
• Footlocker (140)                              • Bombay (all 384 stores)            • Disney (98)                           • Macy's (11)
• JC Penney (scaling back)               • Loews (scaling back)                • Sharper Image (184)           • Wilson Leather (160)
• Pep Boys (31)                                  • Zales (105)                                  • Cache (20)                            • Lane Bryant (40)
• KB Toys (356)                                 • Dillards (26)                               • Fashion Bug (100)               • CompUSA (all stores)
• Mervyn's (all 149 stores)                • Office Depot (126 stores)          • Rite Aid (181 stores)            • Macy's (11 stores, 960 jobs)
• Pacific Sunwear / PacSun (154 Demo stores)      • Linens 'N Things (all 371 stores)                • Club Libby Lu (Saks owned) (all 78 stores)
• Steve & Barry's (all 173 stores)                            • Sergio Rossi (all standalone US stores)      • Kira Plastinina (all 12 US stores)
• Goody's Family Clothing (282 store closures, 9000 jobs)

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on How You Can Increase Your Cashflow Without Raising Rents or Without Lowering Expenses …
October 10 , 2008 | top of page

CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html.

The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Their team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing                                 • Office Buildings                    • Retail
• Wholesale & Distribution                • Restaurants                          • Medical Complexes               • And more
• Hotels                                                 • Resorts                                  • Food Processing

The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

• REDUCED UPFRONT INCOME TAXES                      • EASIER TO FACILITATE 1031 EXCHANGES
• ABILITY TO ACQUIRE LOANS MORE EASILY        • MAXIMIZED ANNUAL TAX DEPRECIATION
• INCREASED CASH FLOW                                             • RELEASES YOUR TRAPPED DEPRECIATION & TURNS IT INTO CASH!
• LOWER INSURANCE PREMIUMS                               • LOWER PROPERTY TAXES IN SOME STATES

Call me today at 602.320.6200 to tap into the Hidden Reservoir of Cash in your Commercial Property!

If you own any type of depreciable Commercial Property with a value of $5 million or more, you may be entitled to these types of benefits. Examples: (i) A Medical Office with a $5,000,000 Basis could realize $1,168,401 in accelerated depreciation saving $467,360 in taxes over sixyears, and (ii) The CPA and Legal Network recently helped a client realize $1,340,000 of tax benefits on their properties.

3 Point 100% Guarantee:

1. You pay nothing until you see what tax saving benefits you are likely to realize using cost segregation.
2. Your cost segregation study will be done in accordance with the IRS ATG, Audit Techniques Guide.
3. The CPA and Legal Network will back you and your CPA in the event of an audit and fully explain the cost segregation procedure used on your property to the IRS.

Clients Served Include:

Cinergy Corp                        Texas-New Mexico Power           General Growth Propeties                Wells Fargo
Starbucks Coffee Co.           Northern Trust Bank                  Kroger Harris Ranch                        Hyatt Hotels
Dayton Power & Light         First Energy   Bank One             Chevron Pacific Gas & Electric        Duquesne Energy

Call me now at 602.320.6200 for a NO COST, NO OBLIGATION evaluation of your property. This limited time offer is available for properties in all 50 states.

It’s your money. What would you rather do: send it to the US Treasury, or use it to grow your business?

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Why Light Rail Continues to Motivate Developers …
October 1 , 2008 | top of page

Back in July’s issue of Phoenix Commercial Real Estate Deals & More I posited on why light rail was having a positive effect on commercial development in metro Phoenix. That blog referenced three examples—two in Tempe and one in Phoenix. This current issue of PCRED&M has 7 articles referencing no fewer than 35 projects in Tempe, 9 in Phoenix, and 1 in Mesa all with the light rail advantage. What’s amazing is that of the 59 total new articles in this month’s PCREN&M more than half of them have a negative headline and accompanying negative storyline citing foreclosures, a glut of space, falling prices, job losses, bankruptcies, slowdowns, rising vacancies, etc. Yet here are 45 projects all with a positive story to tell and one common thread: light rail.

So what does this mean for you the commercial real estate developer? If you take a drive up Central Avenue from downtown Phoenix you can still find vacant lots along the light rail line all the way up to Camelback Road. If you drive east on Washington from downtown Phoenix there are properties suitable for redevelopment. Downtown Tempe might not have vacant lots but there are opportunities for assemblages. Downtown Tempe to Mesa along Apache Blvd. probably offers the most opportunities for redevelopment along a route that has been neglected since the 1970s when the Superstition Freeway usurped this former highway frontage route.

If you have development aspirations but don’t have any eyes or ears in Phoenix call me. I can help.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Why Medical Office Buildings Are A Silver Lining Amidst The Uncertain Economic Climate …
September 10 , 2008 | top of page

While the US economy falters a new research report by Yili Dolan of Torto Wheaton Research contends that medical office buildings are a silver lining amidst generally weakening traditional office property investments. Using US demographics as a backdrop, many investors and developers see opportunity in healthcare investments: “Baby boomers represent 26% of the US population and, now hitting 60, will place tremendous demands on Medicare and require a good deal of support from professional caregivers. In addition to aging baby boomers, the fundamental change in the way healthcare is delivered is the other demand driver.”

According to US census estimates there will be 85 million people over 65 by 2050. These factors have joined together to push many hospitals and care facilities to expand—see page 16 of PCRED&M for an example in Phoenix. And, if the US has a Democratic administration for the next four years, we can expect to see increased funding in the healthcare arena. According to the Torto Wheaton report the overall economy has had increasing unemployment over the past seven months while the healthcare sector has continued to add jobs and is projected to increase at 2.5% per year through 2013. “As healthcare job markets remain strong, the assumption is that the requirements for medical space will be strong as well.”

If you are interested in an opportunity to acquire an historically fully leased, multi-tenant medical office building adjacent to a 225 bed hospital click on this link to download a brochure: CMDC_Flyer

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on When Can We Expect Arizona’s Housing Market to Recover …
September 1 , 2008 | top of page

Inserted into September’s PCREN&M and beginning on page 4 is Arizona’s Economic Forecast by Arizona State Treasurer Dean Martin. Several pages of this report were exhibits in Salt River Project’s Economic Forecast 2009 summit I attended today. I call your attention to pages 41 and 44 of PCREN&M. Arizona, and the US in general, are currently in The Crash Phase which is characterized by the steep decline after The Bubble Bursts (see page 40). The First Turn is defined as a lessening in the slope of the crash when there are signs that the economy is starting to turn. Looking at page 44 we see that Arizona’s housing economy is not predicted to start The First Turn until late in Q1 of 2009. The reason for this (longer than I expected) recover is simple: the last series of subprime loans written in Arizona happened in Q1 2007. These subprime loans are categorized as fixed-to-float loans. They have a low, fixed–interest teaser rate for up to two years before they reset to their substantially higher floating point rate. So, we can expect the final wave of subprime foreclosures to arrive in Q2 2009 when the last of these NINJA (No Income, No Job or Assets) borrowers gets hit with increased payment amounts tied to a substantially higher floating rate and they are forced to mail their lender the house keys. Figuring that this final wave of foreclosures will have made its way through the system within a quarter or two we can expect Arizona’s housing market to hit bottom by Q3 or Q4 2009. Recovery will have started by the end of 2010.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Victor’s Insider Scoop on Why Would Anyone Buy Large Tracts of Land Over 60 Miles West of I-17? …
August 10, 2008 | top of page

Ask most Phoenicians where Harquahala Valley is and you’ll probably get a shrug. Head west from The Stack on I-10 and go past Tolleson, past Avondale, past Buckeye, past Tonopah and in about an hour, after driving by miles and miles of undeveloped desert you’ll hit the interchange for 515th Avenue aka Harquahala Valley Road. You’ll probably be as underwealmed as I was by the sleepy roads and old farm buildings visible as you drive the 11 miles south to Baseline Road where Harquahala Valley Road ends.

But, Harquahala Valley has not escaped notice by one of the Valley’s shrewdest real estate investors: Conley Wolfswinkle. In July 2005 Wolfswinkle paid over $94mm for 15,470 acres in Harquahala Valley. His most recent acquisition (reported here on page 10 of PCRED&M) added 960 more acres bringing about 24,000 acres under his control.

Now, why, oh why would anyone want so much land so far removed from metro Phoenix when, in these troubled times, most investors are only considering investments within the Loop 101 and Loop 202 rings? My answer has 4 components:

1. Water. According to propertyrightssearch.org at the end of 2002 Vidler Water Company owned or had the right to acquire almost 50,000 acre feet of transferable water rights in Harquahala Valley. In order for home developers in Arizona to secure a Public Report from the Arizona Department of Real Estate, the developer has to document an assured 100 year water supply. The Arizona State Legislature has passed legislation allowing Harquahala Valley ground water to be made available as assured water supply to cities and communities in Arizona through agreements with the Central Arizona Groundwater Replenishment District. Furthermore, the Arizona State Legislature has passed several pieces of legislation recognizing Harquahala Valley ground water as a future municipal supply for the Phoenix metropolitan area. In 1991, the expansion of irrigated farming in the Valley was prohibited, and the transfer of the ground water to municipalities was authorized.

2. Solar Generated Electricity. Harquahala Valley is home to the Harquahala Generating Station on Courthouse Road just east of Harquahala Valley Road. The in-place high voltage infrastructure linking Arizona and California (Palo Verde generating station is just east of Harquahala Valley) seems ideally suited to transmitting solar generated electricity to both Arizona and California. The resurgence in solar generated electricity as demonstrated by the recent solar farm announced in the Gila Bend area bodes well for future solar electricity generating developments in Harquahala Valley.

3. Interstate 10 Frontage & Interchange. Located just five hours from the near capacity California ports of metro Los Angeles, Harquahala Valley’s current land prices of less than $10,000 per acre may eventually be attracting industrial developers and new warehouse facilities.

4. In The Path of Progress. Although it may still be a long time coming, Harquahala Valley is on the transportation and development corridor west of Phoenix. Given Harquahala Valley’s assets previously listed it is not too much of a stretch to imagine development leapfrogging over much of the Tonopah area to Harquahala Valley. The only question is when. With the Wolfswinkle’s long term outlook on Harquahala Valley I can see four possible profit centers for their holdings:
• selling water to home developers who cannot otherwise secure a Public Report due to assured water supply issues,
• selling land to or JVing with solar electricity generators,
• selling land to industrial developers or developing warehouses, and
• selling land to homebuilders or developing housing to support the nearby solar/industrial developments.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Why Many Good Properties (and Borrowers) Are On The Ropes …
August 1 , 2008 | top of page

The last thing a bank wants to see is a bunch of FDIC regulators with sharpened pencils come charging through their doors. But, with small and midsize banks losing more than $354 million in Q2 08 (see page 36), you can bet this is happening more and more. According to Albuquerque’s First Community Bank CEO “We are getting a little more conservative in the types of loans we do. We are in a capital preservation mode”. I’m thinking that “a little more conservative” is couching the real situation just a bit too conservatively. With many of the real estate loans on lenders’ books made during Phoenix’s most recent real estate boom, many fine pieces of property are encumbered with more debt than they can be sold for. And, although the borrowers may have development projects that make sense and the borrowers are still current on their payments, they have a sword of Damocles hanging over their heads: their acquisition or construction loan is coming due and no bank wants to discuss refinancing it. This situation presages that more foreclosures may be ready to snowball and further exacerbate a recovery. With the traditional lenders taking themselves out of the picture opportunities are growing for many of Phoenix’s hard-money lenders. But, with interest rates that are sometimes double those of a traditional lender and equity requirements near 50%, borrowers without deep pockets or additional sources of capital may be hard pressed to keep their projects afloat for any extended period.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Why Light Rail Continues to Motivate Developers …
July 10, 2008 | top of page

One of the articles in this month’s PCRED&M is about Glenwood Intermountain Properties’ acquisition of a small site near ASU. Priced at $63 psf it does not fit the mold of where one expects metro Phoenix land prices to be in July 2008. But Glenwood is not alone in their acquisition of a site slated for a mixed-use project consisting of ground floor retail under four storeys of student housing units.

Constellation Property Group of San Diego has a two acre site near Sun Devil Stadium on which it plans to construct 17 and 20 storey towers. Constellation’s Eugene Marchese is quoted as saying there is higher demand for his product since it is located near light-rail. Speaking about his 17 storey condo tower project at Central and Lexington in downtown Phoenix, Equus’ Douglas Edgelow states that he was very specific in selecting a site near a light rail station expecting it to result in a higher demand for his product.

BSR Group, an Israeli developer, has plans for a three tower, $425 million project at Central and McDowell. This project is also located on the light-rail line.

Between 1997 and 2001 office buildings near light-rail stations in Dallas saw their median values increase by 13.5% more than comparable properties not located near light-rail stations. Residential properties saw a 12.5% greater gain during the same period.

Phoenix is still a long way from the bustling downtown streets and crowded public transit vehicles I saw during my recent visit to Vancouver, BC. But it will come and developers and investors who see the opportunities afforded by public transit lines stand to benefit handsomely.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

Why Single Family Finished Lots Have Great Upside (If You Have Some Holding Power)
July 1, 2008 | top of page

You need look no further than the pages of this month’s (or any of the recent) issues of PCREN&M to know that homebuilders in Phoenix are under duress. The supply of single family lots—some held by the homebuilders themselves, some held by land bankers, and some held, or soon to be held, by lenders—greatly exceeds the homebuilders’ current appetite to produce spec homes. As of December 2007, Maricopa County had 160,000 lots and Pinal County had 220,000 lots. With just 1,275 new home permits pulled in June 2008 that’s a 10 year supply in Maricopa County alone!

But, not all lots are created equal. There are Paper (platted) lots, Platted & Engineered (P&E) lots, and Finished lots. The key ingredient added to P&E lots to turn them into Finished lots is OIL. Think about it. Oil and oil by products are used in just about every task required to produce a finished lot. Diesel fuel drives all the machinery used to move and grade the dirt. The machinery’s tires are made from an oil by product as is all of the PVC pipe and conduit. Even landscaping is affected as fuel powers the crusher that produces the gravel. What does all this mean? If you can buy finished lots today at prices well below what homebuilders were paying for finished lots 18 months ago (and I know you can), and you have some holding power, then you have a commodity that it will be next to impossible for current P&E lots to compete with. The oil and oil by products needed to produce new finished lots are now based on $125± per barrel oil meaning their production costs are much, much greater than finished lots made with $80 per barrel oil. Which lots do you think are going to get bought up by the homebuilders first when demand returns? Contact me to discuss opportunities in finished lots as not all finished lots are created equal.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

It Is Not Too Soon to Get Into Arizona’s Land Market …
June 10, 2008 | top of page

Looking back at the number of sales reported in PCRED&M for the year to date shows there was a 48% drop off in commercial sales between a high of 27 in March and a low of 14 in April. Even with the understanding that PCRED&M is not inclusive of all sales that are reported in a service like CoStar Comps it is interesting to note that sales over the past 3 months are trending back up. Although the number of land sales have remained relatively flat over the first six months, as a percentage of total sales, land sales doubled in June over the five previous months.

In light of the current malaise in the overall U.S. economy, rising oil prices, the uncertainty of the upcoming presidential election, and my general impression that we have not seen the last fallout from Wall Street’s and the banking/mortgage industry’s recent mistakes, there is no way to know if sales prices in Arizona (including SF homes) have bottomed and Arizona is returning to its historical growth trend. What is clear from the land sales reported on this month is that investors are still betting large dollar amounts on the profitability future development in Arizona.

So, as an investor, do you jump in now or remain on the sidelines hoping to Time the Bottom of the Market? Prudence garnered from my stockbroker tells me that it is impossible to time the bottom and a better plan is to use the concept of Cost Averaging and get in the market now but not with all of your funds. A better deal may come along and, if it does, you can be ready for it. But if one doesn’t come along then at least you will have made one acquisition at the bottom.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

The Perils of A Commercial Loan…
June 1, 2008 | top of page

If, after reading this month’s edition of PCREN&M, you are motivated by curiosity to search its text for the phrase Mortgages Ltd., you will find (by my count) 89 occurrences! Although this is only the second edition of my Scoop column, I have been compiling these real estate news articles since January 2006. To date I have not been motivated to make such a count as there has never been a single story line that seemed to dominate a month’s real estate news like the on–going saga of Mortgages Ltd.

Commercial real estate acquisition or development loans have become decidedly more difficult to obtain as lenders have tightened up their lending underwriting practices in the wake of the current economic slowdown. They are looking for developers to have more skin in the game or more pre–leasing done before lenders write the check. If you are a developer looking for financing to get your project off the drawing board and you find a lender who indicates they are willing to entertain making you a loan you may very well find yourself breathing a sigh of relief. This will be especially true if you have an acquisition loan with an immanent call coming due and refinancing is a consuming priority.

But, before you sign those loan docs my thought is: Caveat mutuitor!—Let the borrower beware! Check out that lender as carefully as they are checking you out. With $925 million in loans in their portfolio it appears that Mortgages Ltd. had too many developers in their nest. An unfundable loan or, perhaps worse, a partially funded loan could jeopardize your project and your reputation. Who wants the stress of scrambling for a new source of funds from already skittish lenders who are going to balk at possibly being in second position behind an existing loan? And, think what those new loan terms could do to your proforma. Need I also mention attorney fees?

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

The Sky Isn’t Falling on the Phoenix Commercial Real Estate Market … revisited
May 10, 2008 | top of page

In this month’s edition of Phoenix Commercial Real Estate News & More I postulated on why The Sky Is Not Falling on the Phoenix commercial real estate market. Although I still believe that premise is true a closer examination is in order. For those of my readers who have been receiving Deals This Month (the previous incarnation of Phoenix Commercial Real Estate Deals & More) since its inception in August 2007 I have reported on an average of 26 sales transactions per month from August 2007 through March 2008. The April and May editions contained 14 and 16 transactions respectively—a 42% decrease from the average number of historical transactions.

So what’s going on? First and foremost none of my investor clients have told me they are pulling the plug on Phoenix. To the contrary, most are saying they view Phoenix as one of the areas of the country they expect to recover the fastest. Texas is the only state I am aware of that has hardly felt a ripple in the past 12 months (something to do with oil maybe??). My clients who are sitting on piles of cash are of the opinion that the best deals in Phoenix will be had no later than Q4 this year. With my assistance they are studying the market and getting ready to pounce. Given the number of deals out there right now—especially subdivision tracts—my prudent investors are doing their homework now and deciding which submarkets are primed to recover first. Ditto for commercial development corners. Call me if you would like to benefit from this research.

For my income producing property investor clients who finance their acquisitions, the slowdown comes not from a lack of interest but as a result of sellers who have yet to admit to themselves that cap rates have shifted half a point up to accommodate the more stringent lending guidelines imposed by newly prudent lenders as a result of the multitude of bad loans still on their books.

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.

The Sky Isn’t Falling on the Phoenix Commercial Real Estate Market …
May 1, 2008 | top of page

Hidden in plan sight amidst all the newswire headlines that we all have seen and come to expect about the Phoenix marketplace over at least the past three quarters—Home Foreclosures Up • Fewer People Moving to Arizona • Median Home Prices Drop • Arizona Is In Recession • Commercial Vacancy Rates Are Rising • Prices Are Slashed—are signs that the sky is not falling. In this month’s issue of Phoenix Commercial Real Estate News & More are stories on several new investments and projects by Valley development superstars whose track records convince me that they know what they are doing when it comes to commercial development in Phoenix. These names include Kitchell, Westcor, Vestar, Dial, Ryan, and DeBartolo.

In my mind the most unexpected headlines comes from a residential developer and it’s not the often–repeated story about the sale of finished or P&E lots that had to be unloaded at a fire sale price to placate Wall Street. San Diego based Newland Communities is buying; they paid $51.3M to purchase of 3,000 acres in Goodyear which is a sign of their ongoing confidence and long term commitment to the Phoenix metro area. In another story of Newland’s commitment to Phoenix, Newland and Kitchell have teamed up to develop the first retail center in Estrella.

Another welcome bright spot in this month’s issue comes from another residential developer, Blandford Homes, that had to contend with a buying frenzy for homesites in their Mountain Bridge master planned community in northeast Mesa. Buyers were flying in as far away as Alaska and Canada and camping out overnight to get one of the last lots in the Desert Uplands area. Go figure!

Dedicated To Multiplying Your Income

PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.