Friday, December 14, 2007

GaREIA names new executive director

Georgia Real Estate Investors Association (GaREIA) Executive Director Diana Rainoff will retire at the end of 2007.

Anne Galasso will replace her as executive director. Galasso recently was director of operations with the Real Estate Association of Puget Sound (REAPS) in Washington.

Rainoff was director for eight years and is credited with growing GaREIA from a 1000-member association with volunteer staff and a $750,000 budget to an association of up to 3,000 members with a $2 million budget and a staff of 10.

"Diana Rainoff has guided GaREIA through the most challenging period in its history," said long-time GaREIA Board Member Sheryl Barnes. "Her leadership, professionalism, dedication and tenacity have helped GaREIA grow from a small local real estate organization to a nationally respected, premier real estate education provider and professional real estate investor resource."

The Georgia Real Estate Investors Association is the largest real estate investors association in the United States. It has chapters in Athens, Augusta, Columbus, Macon, and Savannah.

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source: bizjournals.com

Apartment owner facing financial troubles

A major owner of Texas apartment properties is delinquent on more than $600 million in loans on properties across the state, including five in Austin, according to a report from The CoStar Group.

Metairie, La.-based MBS Cos. owns and operates at least 65 apartment complexes in Texas accounting for roughly 17,000 units. In Austin alone, MBS is in arrears on $136.1 million in loans on five properties totaling 1,1415 units. They include: Walnut Creek, Village of Sage Creek, Lodge at Stone Oak Ranch, Villas of Bristol Heights and Northcastle, the CoStar analysis shows.

A receptionist at the company's headquarters said there was no one available to take calls from the media and a message left was not immediately returned.

The CoStar report indicates that while PNC Financial Services Group originated nearly all of MBS's loans, most of those loans were in turn offloaded into commercial mortgage backed securities and sold in the public markets. The report cites financial analysts who say if MBS defaults, it could mean losses for hundreds, if not thousands, of individual investors.

MBS is reportedly looking for buyers for a number of its delinquent properties from Houston to San Antonio.

In Austin, the company was preparing to sell the 170-unit Northcastle property at 8100 N. MoPac Expressway to Trammell Crow Residential earlier this year. Trammell Crow filed a request with the city of Austin in August to change the zoning from MF-2 to MF-6, the highest allowable density classification. But when the loan on the property was posted for a November 6 foreclosure, Trammell Crow Residential backed out of the deal and withdrew its zoning request. According to CoStar, the MBS borrowing entity in that case filed for Chapter 11 protection shortly before the foreclosure date.

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source: austin.bizjournals.com

Interest Rate Update

Today's Interest Rates from Realty Times are based on a 30 year amortization rate, with good credit and no origination fees.

At this time rates are on the move upward -- not suprising after the recent Fed rate cut.

Inflation fears also have rates on the rise. Wall Street is keeping a close eye on any hint of rising prices; that's going to translate into higher rates. If you like today's rates, you might think about locking in now.

6.00% 0 Points
Trend: Rising

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source: realestatelocator.com

Going Green: Easier Than You May Think

Green may not be your favorite decorating color, but the concept of making your home environmentally green is growing in popularity as more homeowners realize that they can also save a little more green in their wallets.

The first thing to understand is that you don't have to buy a new, already green home or build a custom home to go green. There are everyday things that can be done that will not only save you some money in the operating costs of running your home but also may make your home more attractive when you want to sell it.

"Going green doesn't have to be painful. It doesn't have to cost you more money. It's more than just changing one fluorescent light bulb. It's an important consideration," says interior designer, Abbey Koplovitz.

"If you build from scratch, you're doing a residential renovation, and you build using green materials, it is going to cost you 20 to 30 percent more but again, you're already spending say $400,000, what's a little more," says Koplovitz.

But when it comes to making an existing home green, it's a lot cheaper since you often build that cost into the routine maintenance. Then the only thing is to routinely make your choice for materials be green.

"Buy a low-flow toilet. Buy a washer and dryer or a dishwasher that uses less water. A lot of my clients think about these things because they decrease the cost to run the home," says Koplovitz.

"So if you're going to buy stainless steel appliances to help sell your house because the kitchen might be a little tired, buy something that's Energy Star rated," says Koplovitz.

When you start your green-home project, first think about and identify what your priorities are. Is cost the main concern? Are you trying to eliminate a problem such as allergies by going green? Are you concerned about the environment and want to make sure the products you buy come from environmentally-friendly manufacturers?

"Typically you have to give something up. So I always tell my clients, 'What really is the most important thing to you?' If price-point is the most important thing to you, then that limits your choice of products. If color range of choices of flooring is really important to you, and you want to be environmentally green, you kind of go down different paths. So I think it's really important to identify what your goals are and how you want to be green," says Koplovitz.

She says that homeowners who have children with allergies will typically be concerned with air quality. So they'll go green by changing flooring or paint.

"You can get paints that are low or no Volatile Organic Compounds (VOC)," says Koplovitz.

But simple knowledgeable choices can keep you allergy-free and help the environment at the same time.

Koplovitz says avoid vinyl at all costs because it gives off toxic gasses. "If allergies are a concern, a really great product is linoleum; true linoleum doesn't increase your price-point very much and it's hypo-allergenic," says Koplovitz.

"If you have wood floors and you need to get them refinished or if you're putting in wood floors, you can go with latex finishes on them. Or, if you're doing carpeting, and you're not allergic to wool, there are many wool projects on the market that are made without a harsh chemical adhesive and harsh chemical processing," explains Koplovitz.

Most people paint their homes every five to 10 years. So one way that people can really contribute to the environment without spending a lot of extra money is by buying paints that have low or no VOC.

"Those are now readily available at all the major manufacturers of paint. So you don't even have to travel very far to get them," says Koplovitz.

To go green, you don't have to do it all at once. But as routine maintenance needs arise, think environmentally green when it comes to choosing materials and products and you'll likely save some money and take pride in doing your part to help protect the environment.

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source: realestatelocator.com

Long- and Short-Term Rates Reverse Trend and Rise This Week

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.11 percent with an average 0.5 point for the week ending December 13, 2007, up from last week when it averaged 5.96 percent as well. Last year at this time, the 30-year FRM averaged 6.12 percent.

The 15-year FRM this week averaged 5.78 percent with an average 0.5 point, up from last week when it averaged 5.65 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.6 point, up from last week when it averaged 5.75 percent. A year ago, the 5-year ARM averaged 5.92 percent.

One-year Treasury-indexed ARMs averaged 5.50 percent this week with an average 0.6 point, up from last week when it was 5.46 percent. At this time last year, the 1-year ARM averaged 5.45 percent.

"November's employment report showed stronger job growth, no change in the unemployment rate and a jump in wages, suggesting to some market participants that the probability of an upcoming recession might be lower than originally thought," said Frank Nothaft, Freddie Mac vice president and chief economist. "This led to a rise in interest rates for U.S. Treasury securities this week and mortgage rates followed."

"However, against that backdrop, serious delinquencies (90 days or more delinquent or in foreclosure) on prime conventional mortgages rose to 1.31 percent in the third quarter of 2007 from 0.79 percent in the same quarter in 2006. And serious delinquencies for subprime loans rose to 11.38 percent from 6.78 percent over the same period, so the housing segment of the economy still has a way to go before bottoming out."

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source: realestatelocator.com