Summer Sizzle- Real Estate Market Continues to Heat Up!

Temperatures aren’t the only thing heating up across the country this summer. Real estate markets from coast to coast are experiencing continued signs of strength. Due to low inventory in many areas, sellers are celebrating the good feeling that comes along with receiving multiple offers on their properties. (We have properties that are selling before they are even done being built!)

While foreclosures still threaten many Americans and distressed inventory is still making up a good amount of the properties available for sale, it looks as though we are headed for a housing shortage. (I get many “gasps” of shock when I share this news with audiences at investment clubs).

But let’s take the California market as an example. Based on statistics compiled by the California Association of Realtors the state’s Unsold Inventory Index for existing, single-family detached homes dropped to 3.5 months in May, down from 5.7 months in May of 2011. The index relays the number of months needed to sell the supply of homes on the market at the current sales rate. In California, the normal rate is 7 months. The summer finds California sitting at half its normal supply of homes on the market.

With interest rates somehow continuing to go even lower, buyers are actively entering the market. Multiple offers and limited inventory are resulting in increases in median homes prices.

Cities from San Diego, to the Bay Area, to Phoenix to the Florida Keys (to name just a few) are seeing very healthy increases in their median prices.

All of these factors bode well for investors. Specifically we are excited about what this means about the opportunities that are being created in the area of real estate development. With a housing shortage looming over us, bringing new inventory to the market is the key to generating some incredible profits in real estate.

Keep an eye out for us to share some exciting information about the great projects we have in development down in the Florida Keys.

While the country continues to experience hot temperatures, we’ve got some hot things going on in Florida…

Are You A Flea?

Some time ago I was told about a study done to test the limits of fleas.  As the story goes, a box was filled with fleas in an attempt to watch what they would do when placed in a large box.  They immediately started to leap about within the box.  Within a short period of time, they begin leaping to higher levels until they discovered they could leap out of the box seeking their goal, someone’s legs.  This was repeatedly done time-after-time.  The fleas quickly learned they could easily leap out of the box.

Then a clear sheet of glass was placed on top of the box. As the fleas attempted to leap out of the box you could hear them hit their heads against the bottom of the glass.  Jump, tick… jump, tick.  Within a short period of time the ticking stopped.  The fleas, tired of beating their heads against the glass ceiling stopped leaping as high.

After awhile the glass sheet was removed from the top of the box and when placed back into the box, all the fleas jumped about but never leaped out of the box!

The other day I was asked by a friend, “Chief, when is enough, enough?” My immediate knee-jerk answer was, and has always been, never!  But I knew that the simple single word “NEVER” was not a sufficient enough answer.

I have always found it strange that when it comes to money, people always seems to feel that there must be some limit, some glass sheet if you will. But I’ve always asked myself, do those same people ask others when enough is enough?  Does the marathon runner get asked when enough is enough?  How about the famous author excited about penning another great novel?  The artist about to paint another exquisite work of art?  The composer with yet another musical score in her head?  Or the doctor willing to save another life?

“Dr. Jones, when is enough, enough?  Just let this one die.”

Yet when it comes to money, somehow there seems to be “enough”.  No way!  I call B.S.!

If you have kids you never forget their first steps.  Can you imagine your child attempting to take their first few steps and then saying, “okay, that’s enough”?

Then they learn to run.  It’s the funniest darn thing to watch their first gawky attempts to run.  I call it flinging limbs!  But no, hold on, enough is enough.  No need to run.  You’ve tried it a few times and that should be adequate.  Here’s your sheet of glass.

Heaven forbid should your child even think about entering into the 50 yard dash… run a mile… join the cross country team… that’s clearly enough.  What?  You want to enter a marathon… are you crazy?  A triathlon is clearly out of the question.  And an Iron Man… well… you need to be institutionalized for such nonsense!

You need a much thicker sheet of glass.

Okay, Okay, you get my point.  Doesn’t this all sound ludicrous?  But wait, let’s look back at money for a moment.

For some reason society has placed an enormous glass sheet above those who strive to make more money. Well, here is a little insight…

It’s not about the money!

The people who ask the age-ol’ question, “when is enough, enough?”, don’t understand that the “money” is nothing more than the score card!

Let me ask you, how fun would the Olympics be without the time clock?  “Well ladies and gentlemen; we have another exciting winter Olympics to share with you.  The mens’ downhill.  We have several men going to sky at ridiculous speeds down a hill until they stop.  And, well, that’s it.  Medals will once again be handed out randomly to anyone that reaches the bottom.”

WHAT?!?!  Are you crazy?!  No clock?  No time element to determine who was fastest?  Without the clock, I don’t even know how fast they are going!

Ah, but when is enough, enough?  Never… IF, (and here comes the “if” ) , if the rest of your life has meaning.  To put it another way:  if your pursuit in any endeavor leaves a wake of destruction, then your pursuit of the gold, or gold metal, needs to be reassessed.

Everything in life has a score card. How well you are doing at work, how well last night’s dinner tasted, how this morning’s workout in the gym went, the conversation you shared with your child after school, to how much money you made this week.

For me as an investor, it’s really about the deals.  I get excited about seeking opportunity where others do not. To wake up and “get to” playing my game to its highest potential.  Like the Olympics, as a real estate fund manager the hurdles are different, the competition is intense and my clock is how fast my investment fund can turn properties for a profit. Ah, there is that clock element again.

My gold-silver-bronze are the profits we make for ourselves and our clients. Money, the simple score card, the reward for years of dedication, courage, focus and the relentless pursuit of success.  The best part you may ask?  As an investor, there are more than just three winners in the world!  Our investors win, homeowners win, the community wins, 100+ people who work for us win, their families win, and my family wins.  So why on earth should a limit be placed on success when so many people’s life’s are touched in a positive way?

Much like in school, life’s report card has more than one score, one grade.  We are being scored/graded in all areas of our lives.  Several “A”s and a few “B”s can all be overshadowed by that one fat ugly “F”.

One of life’s greatest challenges is the constant diligent strive to create for ourselves, and our families, an outstanding report card.  To insure all the areas of our life are being attended to.  The constant juggle of trying to keep a well-balanced report card.

Life’s greatest gifts and experiences exists beyond the box.  Remove the glass sheet of limitation, have the courage to leap beyond yesterday’s limits because there is never enough life to live.