PM Realty seals the deal on area transactions

BY BETTY DILLARD

March 03, 2008

Kurt Cherry, senior vice president of PM Realty Group in Grand Prairie, recently represented the company in four separate leases.

Priority Power Management LLC, an independent energy management and consulting services firm, leased 5,543 square feet of office space at Carrier 360, a four-story, 75,000-square-foot building located at 2080 N. Highway 360 in Grand Prairie. The property has an 88 percent occupancy rate.

Dobbs Temporary Services, dba ProStaff, renewed its lease for 2,132 square feet of office space in Carrier 360. Rebecca Smith of Stream Realty Partners represented ProStaff in the negotiations. Cherry represented the landlord, Carrier 360 Office Associates LP, in both deals.

In another transaction, Cherry represented Arlington Owner Corp. for a lease of 5,205 square feet at Skymark Tower by Fossil Creek Resources.

Located at 1521 N. Cooper St. in Arlington, Skymark Tower is an eight-story Class A office building that has a current occupancy rate of 91 percent.

Lance McIlhenny of The Staubach Co. represented Fossil Creek Resources in the negotiation.

Texas Star Inc. acquired from Southwest Securities FSB a 7,200-square-foot multitenant retail building, located at the southwest corner of West Pioneer Parkway (Spur 303) and Park Springs Boulevard in Arlington.

David Keal with Aubrey Keal Commercial Group represented the seller, while Cherry represented the buyer. Cherry and PM Realty will market and lease the building for Texas Star.

Equipment dealer pushes on

Industrial Buckets USA Inc., which sells and refurbishes heavy earth moving equipment, has purchased 2.5 acres at the southwest quadrant of North Loop 820 and Atlee Parkway in Fort Worth for an undisclosed amount. The company, currently at 3301 E. Loop 820 and Berry Street, will move to its new location within two months.

Aaron Stalberger and Chris Haller of Patterson & Associates Commercial Real Estate in Fort Worth negotiated the deal between Industrial Buckets and 820 Mark IV, which was represented by Steve McKeever.

Elhoff expands practice

Arlington financial counselor Charles R. (Chuck) Elhoff of Elhoff Financial Counseling is expanding his practice with an office at 1808 Industrial Blvd. in Colleyville.

As in his Arlington office, Elhoff will offer investment growth and management, estate planning, asset protection, personal trust services, insurance counseling and personal financial planning.

For almost 20 years, Elhoff has represented Capital Financial Group/H. Beck Inc., which was recently named Broker of the Year by Investment Advisor Magazine.

ThermoTek calls FM home

Medical device manufacturer ThermoTek Inc. is relocating 50 employees from its current Carrollton and Lubbock facilities to a 26,000-square-foot building at Corporate Ridge Business Park, within Flower Mound’s premier Lakeside Business District.

According to Tony Quisenberry, founder and president of ThermoTek, the company expects to occupy the facility this spring.

ThermoTek’s products are used by orthopedic and plastic surgeons, dermatologists, physical therapists, professional athletes and athletic trainers.

Corporate Ridge, under the development of Champion Partners, is north of Lakeside Parkway and west of Gerault Road.

Partnership snags office complex

A local investment partnership has acquired the 42,770-square-foot office complex at 1550 Norwood Drive in Hurst from Pomona Properties LLC. The Class C, garden-style property sold for about $3.6 million. The offices are leased to attorneys, accountants and other professionals.

Russ Webb and Keith Fisher with Stream Realty Partners LP in Dallas negotiated the sale with Rob Wolfle of Swearingen Realty Group LLC.

Realty Capital invests in land

Tucson developer Bourn Partners has paid about $8 million for 185 acres at Interstate 35 and Westinghouse Boulevard, just north of its recent 350-acre Longhorn Junction purchase near fast-growing Georgetown.

The new mixed-use site will offer 500,000 to 700,000 square feet of commercial space, up to 800 multifamily units and approximately 400 assisted living units.

Colleyville-based Realty Capital Partners LLC formed RCP Georgetown Mixed-Use Land Ltd. to provide equity capital for the acquisition.

Lamar East Atrium sold

AD Lamer Atriums LLC purchased Lamar East Atrium, a two-story, garden-style office building at 1601 E. Lamar Blvd. in north Arlington, from Walker Inc. for $3.7 million.

The 57,395-square-foot building was built in 1982 and has recently undergone $500,000 in renovations. SCM Real Estate Services’ property management team coordinated the renovations. At the time of the sale, the building was 72 percent occupied.

Gary Walker with Walker Inc. represented the seller, while Gary Smith with Andrews Dillingham Properties Ltd. represented the buyer.

Sweet Tomatoes grows

Sweet Tomatoes, a California-based salad buffet-style restaurant, will open its second area eatery at 4001 Matlock Road in Arlington. The 7,000-square-foot restaurant is scheduled for completion this spring.

Sweet Tomatoes opened its first North Texas location in October 2007 near Addison. The chain plans additional locations in Southlake, Irving and the Frisco/Plano area over the next two years. Chris Stolzer has been named general manager of all North Texas operations.

NO BETTER TIME THAN PRESENT FOR REFINANCING

COLLEGE STATION (Real Estate Center) – For those considering refinancing their homes, Real Estate Center Chief Economist Dr. Mark Dotzour says there may not be a better time than the present for many years to come.

“Inflation is clearly rampant all over the world, including in the United States,” he said. “When inflation is a problem, mortgage rates go up. Rates probably should be much higher right now, but they aren't.”

Why are rates so low when inflation is not a fear but a fact? Dotzour says the fear of a global collapse of the banking system is greater than the fear of inflation for the world's bond investors.

“Wall Street has a name for the phenomenon, and it's called the ‘flight to quality.’ When investors get concerned about global conditions, the United States is the haven of safety,” Dotzour said. “As investors moved money into U.S. Treasury bonds, the ten-year treasury rate dropped from 5.3 percent in August to 3.7 percent today.”

Dotzour said investors who are using U.S. treasuries as a safe haven are willing to accept a 3.7 percent interest rate even though the U.S. inflation rate is at 4.1 percent.

Once the banking system is repaired and the fear of global collapse of the banks is over, Dotzour predicts treasury rates and mortgage rates will move up, maybe substantially.

“If you believe that we are in for a global financial collapse, then don't refinance yet because interest rates will continue to fall,” he said. “If you think the U.S. government and the central banks around the world won't let this happen, then now is the time to get a fixed-rate mortgage at rates we haven't seen in the past 40 years.”

How to Find the Right Home

Making Pre-Purchase Decisions

Just because you may feel restricted by price ranges -- especially if this is your first or second home purchase -- don't let anybody tell you that you can't afford to be choosy when looking for a home to buy! You are unique. You have desires and needs, hopes and dreams for your new home that are different from your parent's, friend's or coworker's. OK? So let's get busy defining these homebuying parameters and writing them down.

Location & Neighborhood

• Suburbs or Country.

Pros: Generally less expensive. Often newer. Tract homes are conforming. More home for the money.
Cons: More time in traffic if driving to town for work. Further away from entertainment options cities offer.

• Urban.

Pros: Closer to many employers.

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Walking distance to theaters, restaurants, schools. Many period homes offer more distinctiveness in styles.
Cons: Often noisier. Higher crime rates. More expensive.

• Busy Streets.

Pros: Often homes on streets with more traffic are thousands of dollars cheaper. If noise doesn't bother you, don't pass up homes on busy streets. Drive by at different times of the day / week to ascertain noise levels.
Cons: These types of homes will always sell for less than others in the same area. If bedrooms are located near the front of the home, sleep may be disturbed.

• Cul de sac.

Pros: Number one choice of buyers with children.
Cons: Less privacy, neighbors know more about you.

• Corner lots.

Pros: Often larger lots. Fewer neighbors. More visibility.
Cons: More traffic noise. More vulnerable to vehicles jumping the curb. Kids might trespass at the corner. More sidewalk to shovel in winter.

Type of Home

• Single Family.

Pros: Good appreciation. Opportunity for gardens. More privacy. Quieter.
Cons: More expensive than our next category. More maintenance.

• Condos, Townhomes, Cooperatives.

Pros: Less expensive than comparable single-family homes. Generally newer so fewer repairs. Lock-n-go lifestyle. No yard or exterior maintenance.
Cons: Less privacy. Noisier. Common walls and/or floors and ceilings. Sometimes no private yard or balcony.

Number of Stories

• Single Story.

Pros: Easy wheelchair access. Some medical conditions such as bad knees make it hard for certain individuals to climb stairs. Easier to clean.
Cons: Can be noisier if stereos or televisions are located on the same floor as bedrooms. Some people feel safety is compromised if bedrooms are located at ground level. More of the lot is absorbed by living quarters.

• More than One Story.

Pros: More living space on same foundation than a ranch home. Less noise if entertaining on lower level while other family members sleep upstairs.
Cons: More trips up and down the stairs to carry stuff to bedrooms. If laundry rooms are on the second floor, washer leaks are major. Might need dual vacuum cleaners. It is difficult to maintain consistent temperatures on each level without dual heating and cooling units.

• Split Levels.

Pros: Often less expensive if purchased with lower level unfinished. Higher ceilings are appealing. Downstairs family room separates noise levels from upstairs. More square footage on same size lots as ranch homes.
Cons: Less storage space. Hassle to take trash downstairs and carry groceries upstairs or vice versa. Kitchens tend to be smaller.

Interior Specifications

• Number of Bedrooms.

Pros: Common minimum requested configurations are 3 bedrooms. Newer parents prefer bedrooms located on one level.
Cons: 2 bedrooms appeal primarily to first-time home buyers, singles or seniors. However, don't discount a two bedroom if an extra den will satisfy your space requirements.

• Number of Bathrooms.

Pros: More than one bath is preferred by most people. One bath homes are often less expensive.
Cons: Don't pass up a one bath home is there is room to add a second bath. Sometimes it costs less to put in an extra bath than it does to buy a two-bath home.

• Square Footage.

Pros: larger spaces offer more room and cost less per square foot than smaller spaces.
Cons: Don't be misled as lay-out is more important than actual square footage. Sometimes well designed smaller spaces appear larger.

• Bonus Rooms.

Pros: Extra space for media rooms, art studios, children's playrooms, gyms, den/study.
Cons: More expensive.

Garages

• Attached.

Pros: Cheaper to build. Convenient if raining or snowing.
Cons: Higher noise levels inside the home from cars. Some people feel they are an eye sore. If the garage door to the house self locks, you could get locked out at an inopportune time.

• Detached.

Pros: Can be tucked away from site lines. Quieter.
Cons: More expensive to build. Farther to walk in bad weather.

Additional Considerations

• School districts.
• Special amenities such as fireplaces, pools or spas.
• Condition of plumbing, electrical, heating & cooling units.
• Available utilities such as cable or DSL, satellite.
• Sewer, cesspool or septic connections.
• Fixers.

The Meaning of Location, Location, Location

I've seen buyers get so excited over the updates in a home that they forget about the first rule of real estate: location, location, location.

Generally, buyers will get the best return for their money if they buy the worst house in the best neighborhood. If a cosmetic fixer needs carpeting or the floors refinished, buyers might receive a discount on price. Plus, then buyers can choose carpeting or floor finishes that match their own tastes and not that of the seller. On the other hand, buyers will most certainly face a harder time selling down the road if they buy the best house in the worst neighborhood.

Yet, many buyers gravitate toward the right homes in the wrong locations. After looking at a few dozen homes, it's easy to get swept up in the excitement of finding that perfect home. That perfect home might have the right configuration and plenty of amenities but if it's in a bad location, you might want to consider passing it by. Regardless of its price . . . read more about Location, Location, Location.

My Real Estate Website Doesn't Produce Leads

This seems to be the number-one concern among real estate agents these days ... a website that doesn't produce any viable real estate leads. Or one that doesn't produce any leads at all.

Sometimes the answer is obvious. Other times, it calls for some speculation. For example, some websites have such obvious problems that you can spot them at a glance. Maybe there are no lead generation systems in place at all, or perhaps the website doesn't function properly.

In other cases, however, the website may appear to be well-designed from a lead generation standpoint, but it still does not produce any real estate leads. This is a tougher scenario to evaluate.

In the latter case, the lack of real estate leads could just be because of the market. After all, if there's not a lot of real estate activity in your area, you can't expect a steady stream of leads to pour through your real estate website. In many cities -- from Nashville to Tucson and elsewhere -- this is what we are seeing right now. And in this case, you simply have to look at your traffic stats. Are you even getting any traffic on a daily basis? If not, you have no hope of producing real estate leads from the website.

If your stats reveal a steady stream of website traffic day in and day out, but you are not getting any leads from the website, then there is something lacking from a lead generation standpoint. In such cases, these are the things I usually troubleshoot first:

Does the website offer any reason why people should contact the agent, or fill out the form, or whatever the conversion goal is? If not, this needs to be addressed first and foremost.

Are the conversion points easy to find, or is the real estate website in such a messy state that visitors can't find their way around? This is a usability issue, and one of the ways you can spot it is through high percentages of people who hit the home page only to leave right away (without clicking further into the website).

These are the things I would start with when troubleshooting a real estate website with good traffic levels but poor lead generation. Often, it's just a matter of cleaning things up and presenting something of value that people would want.

I also see a lot of those "Free Reports" offered on real estate websites, presumably for lead generation purposes. Many of the so-called reports I encounter are poorly positioned in several ways. First of all, they will consist of information the web visitor can easily find elsewhere online. For example, "Top 10 Tips for Buying a Home" is so worn out and overused that it's sad really. Without much effort, I could probably Google that phrase and find it plastered all across the Web.

So who is going to offer their email address in exchange for a generic article they can find on thousands of other websites? Consumers are web-savvy these days, and they know how to ignore useless info and find the good stuff.

So let's say you took the "free report" concept and injected it with steroids and other performance-enhancing substances ... metaphorically speaking of course. Let's say you created an actual e-booklet, in PDF format. And let's say that it was all about the local real estate scene in your area. Suddenly, the booklet becomes something that people cannot find anywhere else, thus the perceived value of the item increases.

Now let's take this further and hire a graphic designer to create a "virtual cover" for the booklet -- one that you can use to promote it on your website. People believe in what they see, so sometimes a little visual entice is all it takes to get people to starting filling out those web forms.

But we're not done yet. Let's create a press release and distribute it online to announce this insightful new guide to the real estate scene in [your town] ... jam-packed with recent sales statistics, development news, residential reports and more. A must-read for anyone planning to buy a home in [your town].

I've shared enough. You get the idea. But suffice to say these are only steps 1 through 7 of about 15 steps I would take ... if I were serious about generating leads through my real estate website. I offer these kinds of ideas and strategies all the time, but very few people implement them. And do you want to know why?

Because nobody ever said lead generation was easy!

Those who put in the extra effort will reap the extra rewards. And those who keep peddling their "Top Ten Tips for Buying a Home" will probably find another line of work at some point.

Mortgage Meltdown Has More to do with Fraud than Anything Else

Recently, I was discussing the mortgage meltdown with a reporter who made the mistake of asking me who or what I believed was primarily responsible for the mortgage meltdown and housing crash of 2007. My reply consisted of a single word: “fraud.” My conservative estimates target fraud as being responsible for at least 80% of the problem, and most of this fraud was perpetrated by industry insiders (both in the Real Estate and mortgage loan industries) on the consumers.

Of course, there is plenty of blame to go around. If consumers were not so greedy, using their homes like ATM machines whenever they needed an equity fix, perhaps the problem would not be so widespread and so deep. If fiscal conservatives were in charge of running the government at federal, state, and local levels, maybe we would not have a culture built around deficit spending. If politicians hadn’t agreed to ship manufacturing jobs overseas and open our markets to free foreign competition, maybe Americans would have more money to make house payments. If we had universal healthcare coverage, people wouldn’t end up in bankruptcy whenever they needed surgery.

I could go on, but from what I have witnessed in the Real Estate and mortgage loan industry comprises a concerted effort on the part of industry professionals and insiders to fleece the consumer. Cash back at closing schemes caused a huge part of the problem. When homeowners purchased their homes, many of them would borrow in excess of the property’s true market value–sometimes hundreds of thousands or even millions of dollars more than the home was worth. They were then stuffing the proceeds in their pockets as if they had earned it.

Some might say that in this case, consumers are clearly at fault. After all, they were the ones who benefited most from the scam. However, in a huge majority of cases, professionals were advising these homeowners, telling them that this was a perfectly acceptable practice, that “everyone was doing it,” and that you were almost stupid for not doing it. The professionals would even conspire to defraud the banks, lining up appraisers who were known to appraise houses at whatever target value the buyer, seller, and agent decided. In return, the appraiser won more business, and the loan officer and real estate agent “earned” higher commissions. Everybody wins!

Another tactic that mortgage lenders used to suck in clueless buyers consisted of selling consumers on adjustable rate mortgages (ARMs) that had teaser rates. When housing prices were spiraling into the stratosphere, fewer and fewer people were able to afford to take out a conventional mortgage to purchase a home. They simply didn’t have the income and savings required to obtain loan approval at the current interest rates. Instead of denying these high-risk lenders loans, the industry simply lowered the initial interest rate, so more people could qualify. Loan officers downplayed the fact that the interest rates would probably rise significantly months or years down the road. They told the buyers that they could simply refinance if the rate was too high. Unfortunately, when credit tightened, homeowners could no longer refinance with a conventional mortgage. Foreclosure became imminent.

During the big party when housing prices were on the rise and interest rates were dropping, mortgage brokers and the loan officers who worked for them, turned away few if any applicants. If you didn’t make enough money, they would encourage you to fudge the numbers on your loan application. To boost your credit score, you could simply piggyback on someone else’s credit card (this little loophole has been fixed). In some cases, the loan officer would simply have the applicant sign a blank loan application, so the loan officer could fill in the required information later–information that would be sure to win the applicant loan approval.

And this is just the day-to-day fraud. Professional con artists are also responsible for boldfaced scams that have ripped off homeowners and lenders alike. Armed with the Internet, technology, and know-how, these fraudsters could produce forged paperwork to score millions of dollars in mortgage loans for homes they never even bought.

What we are seeing now is fraud fallout. The system has been bruised and battered for too long. The very professionals who rely on the industry to feed them and their families have caused the problem, and many of them are now nowhere to be found. They scammed the system and left hard-working Americans to pick up the tab.