David J. Britton's Blog for you

I think by now everyone including those isolated souls in the middle of an Amazon jungle know that home prices have fallen...and fallen...and fallen.

One thing I do remember from my Wall Street days is that NO ONE can perfectly time the market....

So to that I ponder a few questions..............

1. Can a home price go to zero?  If the answer is no...what is the full liquidation level arrived?

2. Can home prices be below replacement costs of the materials? If so....for how long?

3. If interest rates rise (which is expected in an inflationary environment) what happens to the cost of money?

4. What is the true cost of owning vs. renting...and is it worth it?

I personally feel that we are at historic levels on home prices in the Tampa Bay area.  There are currently homes offered at prices as much as 80% off their peak levels!  Most median prices are down as much as 45%!  It has been a free fall to say the least, however I sincerely believe a home is worth something and they can not be worth less than zero.

With that said, let us assume the average person believes their "COULD" be another 10, 20, or even 30% drop further.  My answer is why would that happen?  Think about it for a moment.......  Could it be supply & demand?  I would ponder not due to the fact that we are already at inverted levels and thus the free market place factors that in..... Could it be foreclosures?  Once again I would ponder not due to the same as mentioned above plus the added heat brought on by NAR about "low" appraisals ... so in conclusion............what could cause prices to drop further??......

answer....

Interest rates.

When it cost more to borrow money, demand slows and thus puts price pressure on homes.  However here poses the meat of this article....

" If interest rates go UP one percentage point.....how much does a home DROP have to occur to remain and keep the same mortgage payment as buying a home today at today's rates"?

answer....

a little over 12% +/- more or less.....

So in conclusion.........waiting is not a good move because even IF there is perfect timing...it is almost  certain to be offset by higher interest rates!

The time is historic and now...only question is will YOU read about history...or make History!

As every market is different and every persons personal situation is unique, ALWAYS check with your local team of professionals before entering into any contract to purchase or sell real estate.

DJB Realty, LLC is a boutique real estate firm that caters to entrepreneurs in representation of business opportunities and investment real estate.  David J. Britton, broker/owner is the founder and a principal investor.  To explore the synergy of working with DJB Realty, LLC please visit our website at www.djbrealty.com.

Have a great day!

Spring Hill Unit 09, Spring Hill  -  Announcing a price reduction on 10474 Abbeville Street, a 3,567 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $274,900 - REDUCED!! Great price!!.

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Home prices have imploded worldwide.  There are several areas that have homes being offered lower than replacement cost EXCLUDING the land.  And in some parts of the world, prices have not stabilized.

After all of this....is it too late to sell?

In one word, maybe.

I know that may sound like a political answer, but there are many factors that go into each particular answer and vary with each regional location.  There is also the fact to look at where do you go next.  For those who's credit is tarnished with late payments, pre-forclosures, lis pendens, collections, judgments, leins, etc., it is too late to sell and those should exhaust every level to keep their home with a possible loan modification.  There are many companies that offer this service including attorneys.  You can do it yourself, however it is not advised.

For those who are in a good credit position, can purchase another home, and just want to trade up or get a bargain, I also say it is too late to sell.  Consider purchasing your trade up or bargain home and KEEP your present home by transferring it to a rental investment.  The use of a property management company is highly advised and should be explored to relieve the day to day activities of being a landlord.  Possible loan modification should also be looked at to improve cash flow of the property.

Since I gave two examples of when it is too late to sell, let me illustrate one that is not ....

Relocation by company.

If you have been effected by the labor market weakness and are experiencing a job transfer or have decided to move to a more favorable area for employment, you should explore liquidating your home through a professional.  The single fact that almost the entire world real estate markets have experienced historic price declines makes the idea of having an out of area home, impracticable.

Remember one thing.

Cycles change.  Prices will go up and yes they will correct and continually adjust to many factors.  I am sure I will be writting a BLOG in the future saying "Too late too buy"?.  Try to stay even keeled through life and business, surround yourself with true professionals who are focused on your goals and objectives and Dream Big!

DJB Realty, LLC is a boutique real estate and business brokerage that caters to entrepreneurs who look to enhance their portfolios with cash flow entities.  David J. Britton, broker/owner is founder of DJB Realty, LLC and can be reached at dave@djbrealty.com.  Updates, featured listings, news, and profiles are displayed at the company's website at www.djbrealty.com.

Have a great day!

Spring Hill Unit 09, Spring Hill  -  Announcing a price reduction on 10474 Abbeville Street, a 3,567 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $279,000 - REDUCED!! Great price!!.

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Spring Hill Unit 09, Spring Hill  -  Announcing a price reduction on 10474 Abbeville Street, a 3,567 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $279,000 - REDUCED!! Cash Flow home!.

Property information

Some say that banks are so tight right now that when you are able to get a penny from them, it has a fingerprint imprinted on them from holding it soooo tight.

I say...think outside the box....

Hello to the world of Seller Financing.

Though this will not work in all cases, their are some that seller financing is an alternative.  ALWAYS ASK!  The worst that can happen is you are told no seller financing is available.

Business brokerage is commonplace for seller financing as it is extremely difficult to receive conventional financing on a business aquisition loan.  However, now we are starting to see this type of financing spread to not only commercial transactions, but also residential.

With banks requiring mostly 20% downpayments or more, some are using Seller Financing for that downpayment amount.  Always check with your loan professional to see if your lender will allow this, however like I previously stated .... ALWAYS ASK.

In summary, these are times of great opportunity however those who are going to excel in the current market environment will need to utilize all avenues of financing structures, including seller financing.

Remember to always dream BIG and have a great day! 

I figured I would end the workweek with a fun post.  Let's talk breifly about having fun.

First, let me say that balance in life is the true measure of any success. We have all heard the sayings....All work and no play...etc. etc. etc.  I think you get the idea.

I would just like to elaborate a little bit and make a quick point.....

Take a step back to when we were all kids in school.  Do you remember all the plans and dreams of the next summer vacation?  You worked hard in school so you could enjoy the summer of fun.  Simply put...this was keeping life in balance, even when we didnt know what it really was.  Now as adults, most people forget about this, and thus this is how depression, frustration, etc. happen....due to lack of balance.

So this is your "Homework"....(I know a little corny, but to the point)

• Make a list of fun things you want to do over the next two months.  It doesnt matter what they are, just make the list. 
• Tell 3 of your friends your list and invite them
• Make a family night of exploring fun time opportunities
• Outsource through teamwork or other ideas to releive you of the day to day duties to make it happen. (everyone no matter how busy can get away for a 3 day MINI Vacation monthly with the correct planning)
• and go have FUN!

When you have a goal/reward that is not always a simple financial number but a item you can do, see, touch, etc., you will become more productive.  As mentioned above ... what is really happening is you are now in balance.

Well enough "work" writting this blog....I have to go find a wind-surf board....Im on my way to scout out the currents in Tampa Bay, FL!

Have a great day and Dream BIG!!!! 

As most of you who know me realize, I primarily cater to entrepreneurs and business owners.  I thought I would take a step back today and speak about a quick topic that might just turn on a light bulb for a few people.

Let's look at the "normal" way that life goes.........

• go to school get good grades so
• you can get a good paying job so
• you can buy a nice so so
• you can pay it off in 30 years so
• you can use that money to invest so
• you can have the cash flow to live out the remainder of you life.

 One word describes what most people do ....

Uniformed.

Let's face a fact.  Most people will follow the above guideline because that is what is taught.  Not only by the generation before, but also the media.  Now please understand I am not advocating that any of this is bad, but take this into account.......

What would be the lifestyle if the average person purchased just ONE more home at retirement?

Light bulb go off yet?

Think about it for a second..........

If the average person has a retirement based on only their primary residence (lets not factor IRA''s, Keoghs, Pensions, etc. as each person is unique and different) then all these calculations are based on only ONE house...their own!

Wouldn't it then be logical that the lifestyle would DOUBLE with only ONE more home?

WOW!

Light bulb go off yet?

Bottomline....most peoples retirement funds comes from the downsizing of their homes.  If someone sold TWO homes instead of one....then the lifestyle should also benefit also.

Just a thought.

Have a great day! 

Everyone including me want to precisely time every market.  The truth is nobody in history has done it consistently.  Yes is is true to get lucky once in awhile, however the fact is most will miss the greatest moves of a trend change while waiting for "confirmation" that it is safe to go back into the water.

Entrepreneurs are different.

We thrive on challenge, risk and reward.  It is in our blood to analyze as much data we can get our hands on, make the best educated guess, and go for it.

Whether it be in stocks, futures, options, collectibles, business, and yes real estate too.

My fellow readers may recall my BOLD prediction on this BLOG site of the turn in the stock market in mid march.  Those who acted did quite well.  Maybe it was dumb luck, (Ive been called worse sometimes..haha), or maybe it was a good inscint call from 15 years of trading experience.  Either way...it was a call, not an inability to ACT.

Now I am posed with this dilemma.

Buy real estate NOW or wait?

Well it is true that we are starting to see the passing of most of the sub-prime market meltdown, and it is true that we are seeing some alt-A paper being foreclosed on, however I am looking at one major item;

psychological sentiment.

It is soooooo negative now and yet, prices are starting to stabilize.  Please understand that every market is different, however the huge drops in rapid fashion are pretty much gone.  Yes I do hear the pundits yelling..."what about the foreclosures and short sales!", and to that I do agree, however I am saying that the MAJORITY of the markets are not in free-fall anymore despite the negative gloom and doom and end of the world speeches.

What does that mean?

Well in my early trading career, we were taught when all news is bad and a stock does not go down....it is bullish....buy it.

Same is true in ALL markets.....the simple fact is when everything is saying negative things about an asset yet that asset does not fall in price, the simple fact is the selling pressure is exhausted and CANT go lower because there are no more sellers!  Looking at the flip-side of this happens in bubble-manias when everyone is saying buy buy buy, however there are no buyers left...thus buyers exhaustion occurs.

So this is the dilemma.

Better to be early or wait?

Well it is true that anything can happen, and nobody knows for sure, however based on the above references, the true entrepreneur should consider buying real estate now.  Keep in mind that the largest percentage of a bullish move and gain occur very rapidly before it gets reported in the news and media!  For those of you following the cash flow models....risk vs. reward has never been this favorable....maybe in history!

So could I be wrong?

Sure anything is possible.....kids might stop eating peanut butter and jelly, the Buffalo Bills might win a Super Bowl, and yes I could be wrong...however if you really look at the data vs. the mass psychology it points to a very favorable time to get some cash flow property!

DJB Realty, LLC is a boutique firm that caters to entrepreneurs who look to enhance their portfolio's with cash flow investment real estate and business opportunities.  David J. Britton, broker/owner is the founder of DJB Realty, LLC and is headquartered in Tampa Bay, FL.  Interested entrepreneurs can visit our website at www.djbrealty.com or email dave@djbrealty.com. Direct call available at 813-469-9120.

Have a great day! 

TIME. We all know it, have it, use it, waste it, complain about it, harness it, and sometimes forget about it....however one thing is certain;

Time is never ending and when it is gone, you can't get it back.

Sounds simple, right?  Well think of this for just a moment.  Which would you rather lose..........a million dollars or 1 year of time?  Well, if you lost a million dollars you were smart enough to make it and thus you can get it back...over time.  If you lost 1 year of your life you can't get that back.  

Though the above example is simple in the reading, I illustrate it to make a point.  The simple fact is we all lose valuable time that could very easily be harnessed through outsourcing.  Here is a quick example.  Let's say you are a real estate investor who does fairly well and generates a 20% return net of all fees on rehab properties.  You spend your Sunday afternoons scouring the Internet for the next deal, meet with inspectors, go to closings, handle subcontractors, and maybe even do a little handyman work yourself.  Upon rehab, you hold open houses, handle calls, deal with objections and contingencies, and finally deposit your closing check for a hopeful profit.

Question.

How much TIME did you spend doing everything?

Better Question.

Would you rather spend your time with family, enjoying a lesuire activity, or just sitting on the beach enjoying the sunset and a margarita?

BEST QUESTION.

Would you still use the time for work instead of enjoyment if you could outsource your activities and STILL NET the same desired percentage on invested capital?

Think about that for a moment.

All real estate activities should be looked at as a TEAM sport.  To be consistently improving, a well balanced TEAM including your attorney, loan officer, bank, appraiser, real estate broker, accountant, contractor, and clean up crew should be in place.  Just as an owner of a sports franchise has star players, reserves, coaches, front office, etc., so should the investor OUTSOURCE and DELEGATE items to leverage TIME for maximum value.

Make sense?

DJB Realty, LLC is a boutique firm that caters to entrepreneurs looking to enhance their portfolios through the acquisition and ddisposition of cashflow real estate and business opportunities.  Services available can be viewed at www.djbrealty.com.

Always dream big and have a great day! 

The dream of business ownership.  Everyone at sometime has thought of it, and we all are quite familiar with our parents saying..."You want to get rich, you have to own your own business".

Truth is...it is work...lots of work, however the rewards are far too great to pass up.

Seasoned business owners will tell you that the long hours, customers, employees, etc. keep them up at night, however they will also tell you of the joy that comes from having their name on the door, seeing the business grow, or maybe even the Initial Public Offering!

Whatever the reasoning is for the pursuit of entrepreneurship, one thing is for certain....

PLAN TO SUCCEED BEFORE you Purchase!

Step 1....Make a checklist...

When you have found that perfect business, make sure you and your professional team lay out a checklist of items.  Good starting points at a minimum are reviewing zoning, permitting, license requirements/status, etc.  Securing a good lease or properly acquiring a commercial space is a must.  Business plans should be completed and reviewed, and reviewed, and updated, and reviewed(get the idea) BEFORE your first day as owner.  Making the introduction to financing and lenders/investors even if you don't need capital now is a good idea. Making a marketing rep is a must if you plan to succeed, however understand the difference between a marketing rep and just a sales rep from one publication/outlet.  Have a family meeting, because remember that even if the family is not running the business on a day to day basis, they are part of it everyday!  Review competition, review, traffic patterns, possible upgrades, etc.  Having a secure professional team in place, ie. accountant, broker, attorney are good ideas.  Try to think of your exit strategy BEFORE you enter!

While there are many ways to enter a business, it is always in your best interest to make a checklist and follow it BEFORE you enter your dream business!

DJB Realty, LLC is a boutique brokerage that caters to entrepreneurs who look to enhance their portfolios with investment real estate and business opportunities.  Visit www.djbrealty.comor call David J. Britton, broker/owner at 813-469-9120 for a confidential inquiry of your objectives and goals.

Have a great day!

Campus Lodge, Lutz  -  The single story at A-2552 A Bearss Ave has been sold.

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Well all work and no play makes....well you get the idea.

Just a quick blog note and a BOOYAH out to the Magic!

Win it all boys! 

We have all seen the infomercials with claims of millions that are easy if you just pick up the phone and spend a few dollars on a book.  Though any information is better than none, it is pretty much a sure bet that most courses don't live up to expectations.

I have a slightly different approach.

Don't worry about making a zillion dollars overnight....just get started on one project with the assistance of a team.

You can and will get better with repetition.  The point is to just start moving!

An old saying goes......

"A journey of a thousand miles starts with one step"

Same applies here.  

Simply put....just get started.....the rest will take of itself.

Have a great day & Never Quit! 

BLACKJACK!! CASHFLOW OF $21000 A YEAR!

• 3,567 sq. ft., 3 bath, 4 bdrm single story - MLS® $299,000 - INVESTOR ALERT! CASHFLOW!

Spring Hill Unit 09, Spring Hill  -  got CASHFLOW?!! It is time to buy and hold for rental income!! CASHFLOW CASHFLOW CASHFLOW!!! ATTENTION INVESTORS; QUALITY TENENT WITH CASH FLOW IN THIS NEWER HOME. Get $1750 monthly cash flow now!! This is a Mercedes built 'Kayla' model with 3537 living square feet and 4109 total square feet. Just off the main crossroads of Spring Hill Drive & Mariner Blvd and minutes to Suncoast Parkway. Very well kept neighborhood of nice homes with NO CDD OR HOA FEES. THIS EXTRA LARGE MODEL HOME IS NO LONGER BUILT IN HERNANDO COUNTY AND WHEN IT IS GONE, ITS GONE. This is the last chance to get a home of this size in Spring Hill. Very large home with the following rooms; 20 foot foyer with 'WOW' effect, living room, dining room, family room, study, florida room, eat in kitchen with breakfast bar, laundry room, billard loft, 4 bedrooms, media room, and several walk in closets. Must see home that will astonish. OWNER IS LICENSED AGENT.

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