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Do you work to live or live to work? | Valerie Fitzgerald | Beverly Hills & West L.A. Real Estate

Valerie Fitzgerald | Beverly Hills  & West L.A. Real Estate: Real Estate Agent in Beverly Hills, CA

Is your work the means to an end or the epicenter of your life? Most businesspeople, on a conscious or subconscious level, want superiors, peers and other constituents to believe they are one of those unselfish corporate types who do whatever it takes for the good of the company. Everything comes in second place: family, friends and one’s very existence, including creature comforts such as adequate sleep and eating three square meals at a table, not a desk. If that is you, then you have checked the “live to work” box.

But wait a second, does this really make a modicum of sense?

When I interview management candidates, after I have determined the interviewee might be a fit, I always ask: “What comes first, your family or your job?”

Those who immediately respond “my job” move down multiple notches on my scale of suitability if, in fact, I believe this is their permanent sentiment.

For a chance to play in the big leagues, most wannabe executives will do whatever it takes to make the lineup. The smart ones, however, know that just like a good novel, a business career has a beginning, middle and, hopefully, an abundance of exciting last chapters.

When aspiring managers begin ascending the corporate ladder, many work as if the clock has no hands. Toiling away at their desks from early morning to the wee hours of the night is an investment in the future to gain experience, a means to accomplishing meaningful objectives and, yes, to a certain degree, an opportunity to obtain face time, sometimes even vying for the coveted corporate appearance trophy. Those who go for appearance alone, without the meat on the bones of accomplishment, are easily unmasked as having a “big hat but no cattle.”

However, hitting the trifecta of experience, accomplishment and the ability to showcase a “get it done” work ethic makes for the complete package.

Once a manager reaches a certain midpoint in a career and has a few good people working for him, he moves from the role of solo doer to that of teacher and navigator who can successfully direct others along a process from point A to point B. Appearances are secondary at this point, as the key is what is in the package, not the wrapper.

During this stage, the middle manager should have that “aha” moment recognizing that business is not an all-or-nothing proposition and he can get a life. I admired any employee working for me who without equivocation would state he could not meet with me at a time that I requested because of another important commitment, which could be attending a kid’s ballgame or a first school play. This communicated volumes to me about the manager’s character and ability to balance priorities and make appropriate choices that fit the circumstances.

On other days, however, I would see this same manager looking like death warmed over the next morning because he just pulled an all-nighter to get the needed task done.

A real game-changer occurs when one reaches the ranks of senior executive with a team of players in the anteroom who are more than ready, willing and able to answer the bell. This gives the leader the opportunity to plan rather than just do, calling the signals instead of responding to them. Priorities change as the executive becomes a dreamer — a visionary who can look beyond today to tomorrow, identifying the future challenges and opportunities, and positioning the organization to respond to them.

In many respects, this is both the best of times and the worst of times. The best is that the leader has others to do the heavy lifting. This provides the executive the time to make other contributions, not just to the company but to his family and community, as well. The worst-of-times component is that the buck stops at the leader’s door. Important decisions have to be made daily, and that pressure can take a toll both mentally and physically. At this point in a career, the need to balance becomes something that is just not nice but necessary to endure the pressures at the top.

An all-time best fast-food jingle positively asserted, “Hold the pickle; hold the lettuce. Special orders don’t upset us,” with the payoff line of “Have it your way.” The secret of having it your way in business is learning when and how to balance a career with a fulfilling personal life.

From Smart Business Michael Feuer, reach him at mfeuer@max-ventures.com.

Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business. Buy it here.

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Let’s Check in With Suze Orman - Ranking Your Debt Payoff to Increase FICO/Home Loan Eligibility

02-08-10
Matt Sweeney
Matt Sweeney: Real Estate Agent in Beverly Hills, CA

Suze w/ Girlfriend - Weren't You Dying to See What Her Partner Looks Like?

Suze w/ Girlfriend - Weren't You Dying to See What Her Partner Looks Like?

For all the rich kids out there who are avid readers of my blog, you know that I am obsessed with Suze Orman. Maybe it's her highlighted wedge cut, those oh so stylish "jackets" that she wears each week, or maybe it's the satisfied feeling I get when she shrilly shouts "DENIED" to someone who wants to purchase something that they simply can't afford. At the end of the day, I find there is something oddly comforting about her. At least to me, her financial information is easy to understand and entertaining at the same time (which is my goal when I write each of my blog entries).

As Suze would say in a very loud voice, "listen up boyfriends and girlfriends (she is saying this as in a "you go girlfriend or boyfriend" manner vs. literally meaning partner - just wanted to clarify that), because it is time for a Suze smack down". Today's topic is how to rank the debt that you have accumulated in order of payoff and then we are going to spin that to make it applicable to the home buying process.

  1. IRS Debt - I would say the bulk of my clients either have traditional salaried jobs or are still students/just getting out of school and their parents are helping them with their new home purchase. If you are an independent contractor (1099) or business owner like myself, you are responsible to pay your own taxes. As someone who has experienced this first hand in my early days, it is easy to not set money aside reserves for your taxes and find yourself with a huge bill from the IRS come April 15th. One word of advice that will serve you well in life: Don't F%$# with the IRS. They will stay after you until you pay, can garnish your wages, and literally empty your bank account to retrieve the money owed to them. This is debt that needs to be paid ahead of everything else. Side Note: for those of you who are salaried employees, I know the fat refund after the new year is something you look forward to, but you have just given the government an interest free loan for the year. Your goal (per Suze which I wholeheartedly agree with) is to basically break even each year without owing nor getting a refund. Put the money you would get as a refund from each check into an interest bearing account and make a little money on the side!
  2. Student Loans: For the rich kid who has a hard earned degree from USC and the $150,000 bill to prove it, make your student loans a priority the moment you graduate. Student loans are one of the easiest things to ignore because unlike the IRS, they are not quite as hard core about their means of collections although they can still garnish wages and make your life miserable. Like a bad case of herpes, student loans will stay with you forever until you pay them off (I guess the same thing cannot be said about herpes - just ask half of Hollywood). Even if you are forced to claim bankruptcy (in which case now is probably not the best time to buy a home), the student loan will not be pardoned. Like the IRS, the US Department of Education should be pretty easy to work with and can come up with payments that are budget friendly while still allowing you to continue to save for that house with a drop dead view in The Bird Streets.
  3. Credit Cards - From High to Low: OK - so you bought or leased a condo from me at The Rob Clark and did so while salivating at the fact that you were mere moments away from LA's shopping district mecca. Did you go caca for Chanel? Does D&G make you pee pee (that was bad - I just wanted something that rhymed)? Trust me, I get it! Well, it's time to pay off those credit cards starting with the one with the highest interest rate and then working your way down the ranks. Once you've paid down the card with the highest interest, then compound the payment you were paying on that card on top of the payment you are making on the next card you are tackling. Keep doing this until you are debt free and learn your lesson. No more spending money on these items if you can't afford it!
  4. Home Loans -If you are a rich kid who pays for your home with cash, then "girlfriend/boyfriend" you've just scored a home run when it comes to the game of life (Suze often likes to use clever little puns - what did think of that one - it's all me) because cash is king in this current market. If you're like most, you will need to obtain a loan. This is why the above mentioned pay off strategies are key to keeping your FICO or credit score high so that you are eligible for the best interest rates. With that said, once you lock in a low interest rate and get a killer deal on a hot prop that I have negotiated for you (which is why now really is the time to buy), there is no rush to pay it off ASAP. An affordable home loan is considered good debt and just making the monthly payments on time is often the best strategy for most first time home buyer
  5. Eight Month Emergency Fund:Don't even flatter yourself to think you are clever enough to slip something as simple as $50/month gym membership past Suze for approval if you don't have eight months of emergency funds saved up. Your are going to be greeting with a large "DENIED" stamp across your forehead. I have mentioned this many times in a bunch of posts as well as my Rich Kids Guide to Buying a Home. In this economy, you absolutely must have this cash in reserves or your parents must be a reliable back up plan that never fails. Either way, do not proceed to buying until you have this in tact.

The Amazing Kristen Wiig as Suze Orman

The Amazing Kristen Wiig as Suze Orman

When you go through the pre approval process, your chosen lender is going to go through your finances with a finetooth come. They want to see a consistent salary history (which is making it harder for those of us in commission based businesses no matter how well we are doing), they want to see where your money is being spent, and they will ask you for every last check stub/debit purchase before they approve you. A client I have in escrow who is absolutely the perfect loan candidate on every level still had to go through this process. Having all your ducks in a row really helps!

One last little bit of Suze advice. We agents often say why pay xyz amount to lease when you can get a mortgage at that price. I myself am also a firm believer in this. HOWEVER, I always have my buyer's sit down at length with a lender to see what additional fees are incurred on top of your basic payment (principle) and interest: monthly codo fees, money for home repairs if needed, condo assessments if applicable, insurance, closing costs, etc. What Suze and I (don't we make a great team, but in all fairness, this came straight for her lips) advise is to get a pretty detailed budget of what your monthly costs are for a purchase price you are comfortable with. When you pay your monthly rent, add those additional costs that you'd incur paying a mortgage/ownership fees and put it into a savings account. If for six months you can comfortably make that payment, not only do you know that are good to go purchase wise, you have a nice little "kitty" (Suze often refers to a savings as a "kitty" which is comically ironic coming from her) saved up for your down payment.

I will leave you with the amazing Kristen Wiig doing her impersonation of Suze: it takes a few seconds to load but worth the wait! Enjoy!!!!

Have you heard about the $365 Million Loan Default in Beverly Hills ....?

Stewart Penn - Los Angeles Condo Specialist : Real Estate Agent in West Hollywood, CA

Have you heard about the $365 Million Loan Default in Beverly Hills ....?

The Beverly Hills Courier reports that "9900 Wilshire Boulevard, the former Robinsons-May building slated to become a luxury condo building, will be put up for public auction after developers Project Lotus LLC (CPC Group) were unable to secure payment for the $385 million loan due last year."

"On February 19, 2010 the 7.95-acre property (once intended to get a 235-unit luxury condo development with retail and restaurant space) will be sold at a public auction on the courthouse steps in Norwalk. The project was supposed to break ground last summer and take 30 months to build, but it was put on hold after Kaupthing (The Icelandic Bank that was a partner in the project) declared bankruptcy in the fall of 2008."

CPC Group along with Kaupthing HF Bank of Iceland, purchased the site (directly across the street from the famous Beverly Hilton Hotel) in April 2007 for $500 million.

What's mind-boggling to know is that these Developers bought the site for $500 Million .... only three years after it was previously purchased for $33 Million by the Seller (New Pacific Realty) from The Equitable Life Assurance Society.

CPC Group (British developer Candy & Candy) paid about $62.5 million per acre ..... that's $1,445 per square foot.

You have to ask yourself .... "What were they thinking?"

Market Forecast : Trends to Watch | Valerie Fitzgerald | Beverly Hills & West L.A. Real Estate

Valerie Fitzgerald | Beverly Hills  & West L.A. Real Estate: Real Estate Agent in Beverly Hills, CA

FROM REAL ESTATE MAGAZINE

Jobs, foreclosures, option-adjustable-rate mortgages, and interest rates are among the top trends that could dictate what will happen in California's housing markets this year. Here's what you need to know to make sense of how these trends could affect the real estate market.

1. Market Fundamentals
Three market fundamentals that turned positive in 2009 could be good indicators this year as well. First, home prices have fallen lower than replacement costs in many markets. This means a home can be bought for less than the cost to build it.

Second, home prices are "a lot more attractive" relative to rents than they have been in many years; and third, inventory of for-sale homes has "dropped very dramatically," says Richard K. Green, director of the USC Lusk School of Real Estate in Los Angeles. That suggests some markets have stabilized, although
homes priced at more than $1 million may be an exception. "There is still a lot of pain left to come" in that segment of the market, Green warns.

2. Jobs
"Painful" describes the employment picture and the outlook for wage hikes and job security. Moreover, housing may now be less sensitive to traditional jobmoving patterns, observes Stefan Swanepoel, a real estate trends expert, author, and speaker in Aliso Viejo. Home sales that involve corporate relocations or year-end job changes may be moribund until the employment situation improves.

3. Foreclosures
Jobs are an important factor in foreclosures, though "not everyone who has lost a job has lost their house yet," Swanepoel says. Homeowners who've lost a job may have had to live on lower wages or one income, or may have had to tap into their savings or retirement accounts to get by. "If they don't get a decent job or a good job soon, I can see their houses still coming on the market in foreclosures or short sales," he says.

Another trend to watch is that some homewners have dodged foreclosure even though they haven't made their mortgage payments, according to Sean O'Toole, chief executive of ForeclosureRadar.com.
"We don't have the political or societal will to foreclose on [that many] people, but nor do we have the will to bail out those homeowners who can't afford their payments," O'Toole says. That stalemate has slowed the pace of foreclosures, which may mean fewer opportunities for REALTORS® to list and sell those homes, he suggests.

4. Lenders and Loans
Home loans are crucial to healthy housing markets, so REALTORS® need to keep an eye on national lenders that originate loans locally, Swanepoel suggests. "As they digest the companies they've acquired and find out what loans they have, what loans they are servicing, and what their exposure in certain markets is, they might change their rules and terms and conditions," he warns. Tougher requirements for loans insured by the Federal Housing Administration (FHA) could have an effect on housing as well.

5. Interest Rates
Interest rates could turn out to be the ultimate wild card. How long the Federal Reserve will keep interest rates low is an unanswerable question on which hangs the future of housing. The Fed's ability to maintain low interest rates is "the greatest risk to the real estate industry right now," says O'Toole. "If interest rates go to 8 percent, this market is over."

6. Option-ARM Recasts
Low interest rates have taken the sting out of adjustable-rate mortgages (ARMs), but the payment option variety is still watch-worthy because a recast to make up negative amortization can result in an enormous payment shock, Green notes. "You could set up a fairly simple example where interest rates don't go up at all, but the payment doubles," he says. "If that loan was originated with a 90 percent
loan-to-value ratio and you are piling up principal, you could be deeply underwater and unable to make the payment." Aggressive loan modification programs have blunted the expected blow from option-ARM recasts, but many homeowners still owe more than their home is worth and 30-day delinquencies
have continued to climb, O'Toole observes.

That suggests more homeowners may throw in the towel. "Strategic walk-aways from negative equity and/or due to job loss are going to be a bigger issue because modification programs and low interest rates likely have taken up the slack from the reset/recast issue," he explains.

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business. Buy it here.

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There's Energy in The Air | Valerie Fitzgerald | Beverly Hills & West L.A. Real Estate

Valerie Fitzgerald | Beverly Hills  & West L.A. Real Estate: Real Estate Agent in Beverly Hills, CA
There's energy in the air! Sales for January were robust in most Westside neighborhoods.

It's been said that California is a "tale of two states": while foreclosures have been high in many areas of southern California, there are areas with very few distressed properties. In all of the 58 counties in California, joblessness has had a significant impact on the local economies. Yet in the coastal areas (and specifically in our Westside markets), unemployment is starkly lower.

As we know, housing is a leading indicator relative to economic activity and the month of January showed positive progress. The consensus is that people are feeling better and more confident about their financial standing. Since many buyers have been sidelined by high home prices for two or more years, they see that prices have lowered -- often significantly -- and this, coupled with continued low interest rates induces their commitment to purchase a home.

With the inventory of available homes low throughout all areas of the Westside, this is the time to encourage your potential sellers that it's a great time to list their home!

The discussion with your buyers should be about their financial stability. If they feel secure about their incomes for the next 5-10 years, this is probably their last opportunity to buy when home prices are flexible and interest rates remain low.

To your continued success!