Bernard Zick's                                                                         

REIT REAL ESTATE REPORT                         

April 2004

The REIT Real Estate Report is published about once a month. It is intended to serve no special or worthwhile purpose.  It is just my way of telling you what is going on in the world of real estate education.  My only goal is that I don't get sued and you are entertained a bit.  For an e-newsletter of merit, our next issue of Advice for the Impatient Investor will be out the first week of May.

Editors: Bernard "Barney" Zick bernard@zick.com, Karen Zick and Amy McIntee

This email was sent to you by REIT, Corp. To ensure delivery to your inbox (not bulk or junk folders), please add bernard2--9168385@autocontactor.com to your address book.

In this issue:

The Crystal Ball – Will Interest Rates Kill Price Growth?

Life as I See it

Upcoming Events

All Fund Mortgage – Do You Want to be in the Mortgage Loan Business?

Want a $10,000.00 Investor Web Site for the Price of a Newspaper Ad?

Tips for Sending Email to Barney

The Crystal Ball – Will Interest Rates Kill Price Growth?

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Some are saying that the increase in employment will be substantial by the end of the year.  I agree.  They say that will allow the Fed to increase interest rates, maybe as much as 100 basis points (that is one percent for you new folks).  I know rates will go up, but one percent is at the top end.  They say that an increase in rates will kill real estate investing and cause houses to go down in value.  I totally disagree.

Here is why.  First and most importantly, the growth of jobs INCREASES the ability of folks to buy houses.  I have said it over and over…more people with more jobs and more money from jobs increases home prices.  It is a supply and demand deal with an in elastic supply.  Secondly, more jobs makes for more confidence and that psychologically allows us to be willing to buy.

So why has one of the measures of the economy been so weak?  Payroll growth has been slow, but that is in part because of worker productivity.  We have had more gains in productivity this recovery than any other.  Secondly, remember this is all a sampling.  The numbers we see in the news at night are not always perfectly accurate.  Remember how Bush Sr. seemed to be defeated, in part, because the economy had not turned around?  And if you watch economic news, after the election they found out it HAD turned around but the numbers that had been reported were off?  So maybe it makes good political ammo but the numbers need to be looked at with generosity until final numbers can be collected.

What I do know is this.  Lots of people want to blame the President.  Congress controls spending and no one tries to blame them.  The economy went into the drink because of September 11.  Yes, they are trying to blame that on him too.  In fact, some people seem to be spending more time and effort on blaming Bush for everything that you would think they hate him more than the people that killed Americans on September 11 and are doing it now!  (I often wonder how people set their priorities.)  Bush is no more responsible than Clinton…this was all being planned for years during his administration.  The system for sharing information was a mess and it, to a degree, still is.  That is what needs to get fixed.  Anyway, back to the economy…it is getting better.

Yes, interest rates will go up…most likely in November (after the election).  Yes, unemployment is improving slowly.  But as Lawrence Yun, Senior Forecast Economist for Real Estate Outlook pointed out, we are doing great compared to everyone else.  Canada is at 7.4%; France at 9.5%; Germany at 10.6%; all the Eurozone at 8.8% and Japan at 5.0%.  I know, if your neighbor is out of a job, it is a recession, if you are out of a job, it is a depression.  Got it.

Bottom line, statistics will say that one hand has washed another.  For you, in the middle of the market, it will give you some opportunities.  There is an old stock market slogan, “from weak hands to strong hands.”  That means that in the shifts, the increase in adjustable rate mortgage will cause some new home owners to let go and sharp people will get some bargains in the process.  To me, that is good news.  Some places such as the San Jose to San Francisco area have been too hot for easy bargains.  Maybe there will be some opportunities now.

What should you do?  This is a good time to learn your markets and hone your skills.  For those of you just getting started, it is good timing.

BZ

Life as I See it

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Everyone lives in a flesh shell and looks out on the world and says to themselves, “they are doing it wrong.”  The problem is each of us is listening to our own minds.  We have collected a wealth of good and bad experiences and have come to judgments.  We were built with a genetic blueprint that gives us tendencies.  At least that is my observation from inside my shell.

So, dear hearts, when I tell you how to live your life, believe me, I do believe what I am saying down to the bottom of my chubby feet.  But, I also know it comes from my view of the world.

I have been shaped by many things.  My dad’s death at age 14 months was a big one.  I have unearthed abandonment, co-dependency, over achieving and ego drive to fill a self-defined hole and much, much more.  Nearly dying once and being given six months to live had to be in there.  But, dear hearts, here is my advice to you, which I am sure is right, because I thought of it.

Life is a ripe fruit on a tree in the woods.

The weak pass by and say I wish it were closer and stay weak.

The soon to be strong, get across the creek and climb the hill

And eat their fill of the fruit.

Life without gusto is walking death.

Life without growth is a rehearsal for death.

We are put on earth to grow mentally, spiritually, and to learn to love.

This is not a task for the idle.

It requires action and for every action, there is a reward.

There is the reward of pride, growth and attainment or

There is the reward of lessons learned the hard way.

But without going into action, there is only a slow deterioration of the mind and body.

Grab for what you want.

Ask for what you need.

And if ignored, ask again.

Elevate people by making them help you.

The good people on earth want to help.

You make them feel good by giving them that opportunity.

The mean people on earth need to learn sharing,

You help them grow when you force them to help.

They will be better for it.

If you are constantly in motion, you will attract interesting, bright, vibrant friends.

If you lay like a potato in the earth, you’ll be surrounded with fertilizer for friends.

And when you do take time to rest, it is sweet.

And when you do take time to play, you play bigger and more exciting than anyone else.

So don’t take “no” for an answer.

Grab for that fruit.

And if you never get done all that you wanted to do,

Welcome to the club where the members had lived a full life

And are happier for it.

BZ

Upcoming Events

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We will be doing an Options Boot Camp in the Orange County/LA area in early May. To let you know about our program, we are holding preview events in the area this month on April 15th -18th. See the schedule below for details. If you are an old friend, come out and say “hello.” If you have yet to meet me, do take this opportunity to introduce yourself!

Click Here to register online or call Terrie at our office at 800-677-3253.

818-980-1212

All Fund Mortgage – Do You Want to be in the Mortgage Loan Business?

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If there was a sub-heading, it would be “slow and steady does it.”

Some of you have joined us; others are watching the saga unfold.  We started out attempting to sweep the U.S. overnight signing up Loan Originators.  You, our students, get a great source of income; we get agents in 42 states.  In addition, just learning to be a Loan Originator doubles your real estate finance knowledge.

But along the way, I have found out there are a few laws.  I have been slamming up against this wall for three years now.  I have been trying to get positioned nationally fast for so long that I am getting it done slowly.

What Parts of the U.S. are Current Targets?

Our local branch is licensed in Alaska, Alabama, Colorado, Georgia, Illinois, Indiana, Michigan, Minnesota, Missouri, Montana, North Dakota, Texas, Virginia and Wyoming.  We can originate loans in these states.  We are now a “Branch Office” for All Fund (#4156) and will take on Loan Originators anywhere but we are concentrating on getting training set up for Texas, California and Florida first.  We are currently getting licenses for California and Florida.  We have found that we need to get qualified in several states and I have to do that state by state.  This does not affect you if you don’t do business across state lines.  We have a solution coming once the company does some big behind the scenes restructuring.  Then we will not have to qualify but once!

If you want to be a “Captain” in a state, almost any state, let us know.  We are considering setting up people and then putting our newly hired Loan Originators under these people.  We don’t have time to build every part of the country and will let you do it for us.  We will help with recruits.  However, for now, we will not be doing Delaware, Hawaii, Kansas, Nebraska, New Jersey, New York, South Dakota or West Virginia.  Give them a year.

To look us over, go to www.zickhomeloans.com.  If you want to sign up now, you will have to fill out the application on line, print it out, sign it in all the right places and send the Global Marketing part to us for my signature.  The All Fund part can be sent directly to them once the employment eligibility form has been notarized.  Our address is P.O. Box 6399, Kingwood, Texas 77325-6399 or call the office 281-358-0409 for a FedEx address.  The approximate $250 in sign up fees includes a year of web site hosting!

Regarding training, we have classes set up in San Jose.  We have a home study course with back up consulting arranged with an outside firm.  We will walk you through your first three loans, holding your hand and making sure they close if at all possible.

This is an opportunity to get in on the ground floor of a business that fits with your real estate investing.  Tell us how we can help.

If you have questions, read the web site first.  You can link to us from there.

Want a $10,000.00 Investor Web Site for the Price of a Newspaper Ad?

First, let me clear the air. If you are new to our newsletter, give us another three weeks. This issue, mid-month, is my chance to vent, to gossip and to tell you about things that can save you time and or money. The first-of-the-month newsletter is full of meaty ideas.

Last year I asked you, the readers how to solve my Web problem. I have spent over $100,000 on www.zick.com  and did not want to do the same on a site for home sellers. I checked prices -- the canned sites I could find or working with sites made by developers required me to come up with a $10,000 budget. Still too much. But a reader found a great site for me -- www.zickinvestmentproperties.com is a canned site. You can have one just like it or similar to it, with a different face. I arranged a $50 discount if you link through me. Look at my site, then go through http://www.zickinvestmentproperties.com/web-design.htm.

Here is a great marketing idea. I got my maintenance man to put one of our Web site names on his truck. Now, everywhere he goes to fix a house, we get “I Buy Houses” advertising with our Web site name prominently displayed.  Signs with phone numbers alone work but not everyone wants to call someone when they are behind in payments.  Some would rather read about you and what you can do first. That is where the Web site comes in. Give it a try. It works for us.

Tips for Sending Email to Barney

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If you've emailed Barney and did not get a response, he has had three (!) computer crashes recently and, as you may know, email is not picked up by most email back up systems.  So, please email him again if you haven’t heard from him and make sure the subject line is simple and direct like “real estate investors’ web sites” or “need information on xxx.”  In this age of tons of spam, we have someone that deletes Barney’s junk mail so cute subject lines might end up in the trash!  Barney’s email address is bernard@zick.com.

The Fine Print...

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We will do one newsletter like this one (Advice for the Impatient Investor) and one called the REIT Report (containing Real Estate Education Industry News and a lot of personal opinions), approximately once a month.  (However, keep in mind, our newsletters are free so don't get upset if we skip one occasionally!)  

Advice for the Impatient Investor has been published for fourteen years (but not in a row). The next issue should be out about June 1st.  The next REIT Report will go out on or about May 15th.  

Folks smarter than us told us to say: We take no responsibility for the accuracy of the postings.  All contents of the postings are the responsibility of the posting party.  The foregoing material is strictly for informational purposes only and does not provide legal, financial, accounting or investing advice or services. Use of any of the foregoing information does not create a client relationship.  You should not act on the information provided without seeking legal, accounting and tax counsel of your choice.

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Copyright © 2004 by Real Estate Investors Training Corporation.

ISSN # 0272-8559

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