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July 31, 2009

commercial property appraiser, commercial property appraisal

commercial property appraiser, commercial property appraisal

 

This week's e-mail update from NAR contains information from topics you selected. To access the topics, click on the links below.

 
COMMERCIAL ISSUES
TARP Helping
Banks say they are making more loans. Financial Times reported that of 360 banks surveyed, 299 of them had loaned TARP funds. Read more...
http://www.realtor.org/narlservredirect.nsf/pages/NT000013EA?OpenDocument&WT.mc_id=LS072909&CAT=Comm

Cloud Computing for Commercial Real Estate Agents
Often called "cloud computing" because information lives somewhere "in the clouds," the concept is quickly catching on in the commercial real estate realm because it gives practitioners remote access to important documents and makes data accessible for clients and prospects. Read more...
http://www.realtor.org/rmocommercial/articles/0907_commercial_clouds?&WT.mc_id=LS072909&CAT=Comm

Commercial Real Es! tate - H ot Topic at Senate Hearing
TALF, the Fed emergency program that lends to investors to buy debt is scheudled to expire on Dec. 31,2009. But Fed Chair Ben Bernanke, in testifying before the Senate Banking Committee, said it would be extended if markets continue to need support. Read the full Bloomberg article. For more information¸ visit...
http://www.realtor.org/narlservredirect.nsf/pages/NT000013EE?OpenDocument&WT.mc_id=LS072909&CAT=Comm

LEGAL ISSUES
Variance Denial Constituted a Taking
Montana court rules that county improperly conditioned approval of a developer's project on the building of a road. Please note: The following link is to a member-only area of the site Read more...
http://www.realtor.org/letterlw.nsf/pages/0709christison?OpenDocument&WT.mc_id=LS072909&CAT=Legal

Brokerage Admin Fee Shot Down: What's Next?
In a chilling development for real estate brokerages, a U.S. District Court in April ruled on a class action lawsuit against a brokerage that charged a flat $149 administrative fee in addition to its commission.  Read more...
http://www.realtor.org/rmolaw_and_ethics/in+court/pastarticles/0907_incourt?&WT.mc_id=LS072909&CAT=Legal

 

 

commercial property appraiser, commercial property appraisal

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From: HUD USER News
 
The proposed Fiscal Year (FY) 2010 Fair Market Rents
(FMRs) will be published in the Federal Register on
Tuesday, August 4, 2009, but the tables, documentation
system and a copy of the preamble are available on the
HUD USER website, www.huduser.org/datasets/fmr.html, as
of Friday, July 31, 2009. The proposed FMRs, subject to
comments, are used in the Housing Choice Voucher, the
Moderate Rehabilitation, the project-based voucher, and
any other programs requiring their use. Section 8(c)(1)
of the United States Housing Act of 1937 requires the
Secretary to publish FMRs periodically, but not less than
annually, to be effective on October 1 of each year. The
FMRs are estimated at 40th and 50th percentile rent
levels.
 
A 30-day comment period has been provided to ensure that
final FMRs are published by October 1. In this notice,
HUD is requesting suggestions for changes in the FMR
methodology that will be examined in a subsequent notice
illustrating examples of possible methodological and
geographic changes in FMRs. HUD will publish this
additional Federal Register notice before the proposed FY
2011 FMRs are released to seek public comments on the
proposed changes.
  commercial property appraiser, commercial property appraisal
Some areas are granted higher FMRs (based on the 50th
percentile rather than the 40th percentile of the local
rent distribution) to achieve deconcentration of units in
high poverty areas by voucher holders. An area that
qualifies for a 50th percentile is set at that level for
three years, and then its deconcentration progress is
evaluated. For the proposed FY 2010 FMRs, 16 FMR areas
are eligible to use 50th percentile FMRs. commercial property appraiser, commercial property appraisal
 
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Real Estate & Property Law

Real Estate & Property Law

Mortgage Modification Stymied by Lucrative Lender Late Fees

Posted Jul 30, 2009, 04:36 pm CDT
By Martha Neil

Much has been said about how the so-called securitization of mortgage loans—reselling small fractions of the loans to multiple investors, sometimes again and again—has stymied efforts to encourage lenders to renegotiate mortgage interest and other loan terms with struggling homeowners.

But another factor in addition to the difficulty of obtaining approval of loan modifications from multiple, far-distant creditors is also at work, according to the New York Times. Lenders make more money by hitting those in default with additional fees for late payments, appraisals, title searches, insurance and legal filings, often referring such lucrative business to companies in which they have a financial interest.

Thus, concerning those properties whose equity still exceeds the loan amount, even in a devalued real estate market, or the debtor finds a way to catch up in order to avoid losing the home, lenders can do better by simply playing a waiting game, according to the newspaper.

“For many subprime servicers, late fees alone constitute a significant fraction of their total income and profit,” attorney Diane Thompson testified before the Senate Banking Committee this month, on behalf of the National Consumer Law Center. “Servicers thus have an incentive to push homeowners into late payments and keep them there: if the loan pays late, the servicer is more likely to profit.”

Related coverage:

ABA Journal: "Battle on the Home Front"

ABAJournal.com: "Lawmaker to Lenders: Modify Mortgages, or We’ll Revive ‘Cramdown’ Bill"

Wall Street Journal (opinion): "Why Toxic Assets Are So Hard to Clean Up"

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July 30, 2009

Inverse condenmnation appraiser

Wisconsin Supreme Court: The Whole Is Lesser Than The Sum Of Its Parts

Posted: 29 Jul 2009 12:04 PM PDT Inverse condenmnation appraiser

When considering a redevelopment authority's condemnation of what is assumed by all litigants to be a valuable leasehold interest, how does a court determine the lessee is owed nothing, and conclude that nothing is "just" compensation (and indeed, the lessee must pay back the compensation it was previously paid, plus interest)?

Eminent domain mavens already know the answer: the "undivided fee" rule. You know, the doctrine that holds the whole is lesser than the sum of its parts.

The undivided fee rule is a legal fiction requiring a trial court to ignore reality -- when property is held by more than one interest, valuation is determined as if a single owner possessed everything, and the condemnor is not required to compensate each separate interest in the property. For example, if a condemned building is being leased to tenants, compensation is measured by the value of the undivided fee simple absolute value of the building, not the aggregate value of the building and the leases. The building owner and the tenants must divide up the condemnation award by contract.

In City of Milwaukee Post No. 2874 Veterans of Foreign Wars of the United States v. Redevelopment Authority of the City of Milwaukee, No. 2006AP2866 (July 17, 2009), a sharply divided Wisconsin Supreme Court applied the rule (aka the "unit rule") to conclude first that a tenant who owned an admittedly valuable long term lease ($1 rent per year, plus goodies) was not entitled to any compensation because the value of the building was zero and second, that application of the rule was not unconstitutional under the Wisconsin Constitution's takings clause.

It was an unusual fact pattern that brought the majority to this strange result, but there's a reason "hard cases make bad law" is more of a truism than a cliche. Here's the summary from the website of the Wisconsin courts:

 

In 1942, the VFW owned the building located on the property and used it as its post headquarters. In 1961, the VFW conveyed the land and improvements to Towne Metropolitan, Inc., which constructed an 11-story hotel.  In exchange for the conveyance, the VFW obtained a 99-year lease, with the option to renew for another 99 years.  Under the leasehold, the VFW paid $1.00 annually and the lessor would pay all real estate taxes, all utilities, and cover maintenance on the property.

The property operated as a Hilton Hotel and then as a Holiday Inn.  In 1986, Towne sold the property to Marquette University, which used it as a dormitory.  In 1994, the property was sold to the Maharishi Vedic University for $600,000.  Both sales required the new owners to assume the responsibility to comply with the VFW’s lease.  The Maharishi never occupied the building after its acquisition.

The Redevelopment Authority of the City of Milwaukee (RACM) eventually condemned the abandoned building.  As compensation, RACM offered Maharishi and the VFW $440,000 for the property.  In December 2001, a circuit court divided the $440,000, allocating $300,000 to the VFW for the value of its leasehold interest.  The VFW appealed the adequacy of this award to the Condemnation Commission, which requested instruction from the trial court as to how to value the property.  The trial court instructed the Commission to value the property using the unit rule. The VFW petitioned for leave to appeal this determination.  The Court of Appeals granted this request and ruled that the unit rule should be used but declined to address questions concerning the constitutionality of the application of the rule.  See City of Milwaukee Redev. Auth. v. Veterans of Foreign Wars Post 2874, 2003 WI App 225, 267 Wis. 2d 960, 671 N.W.2d 717, unpublished slip op. (Sept. 30, 2003).

In December 2004, the Condemnation Commission found the value of the property to be $15,000 less than the initial award.  The VFW appealed this conclusion and asked the trial court to declare the application of the unit rule in this case unconstitutional.  The trial court denied the motion and the case was tried to a jury on the question of the value of the property.  The jury returned a verdict that the hotel building at 2601 West Wisconsin Avenue had no value. Judgment was then entered against the VFW in the amount of $387,348.24, which included the $300,000 it had already been paid, plus accumulated interest and costs.

 

 

"Inquiring minds might ask," the court noted, "how the property at issue in the instant case can be worth nothing." Slip op. at 6. "The answer is that the property as a whole is worth nothing because it is financially infeasible to use the property either by remodeling the hotel building or by demolishing the building to get at the unimproved land." Id.

Barista's note: this approach seems straightforward enough; we just wish courts would use the same method in regulatory takings cases to analyze whether a regulation has deprived an owner of all economically beneficial uses of property. Instead, most courts go through all sorts of contortions (and keep these issues from juries, which tend to view the question of what uses remain more realistically than judges) to find that a regulation leaves an owner with some use -- however ridiculous that use may be from the standpoint of a reasonable property owner -- and thus no taking has occurred.

The majority acknowledged the lease had value (the dissent characterized the arrangement as a "prepaid, long-term lease"). Slip op. at 12 & n.10. However, the undivided fee rule meant that "fee worth nothing, lease worth nothing." The court concluded an exception was not warranted, and the application of the rule to these facts to leave the VFW with nothing did not violate the Wisconsin Constitution: "We conclude that the VFW receives just compensation when it receives no compensation for its leasehold interest in a property that has no value." Slip op. at 6. Although the majority acknowledged that a lease is a property interest, the latter portion of the opinion was devoted to recasting the property interest as a contract right, and a mere expectation. See slip op. at 28-30. And we all know that contract rights that are taken are, for the most part, frustrated expectancies, not a compensable property interest.

Read Justice Prosser's dissent for a more cogent deconstruction of the majority's opinion that we can make. Our only thought is that it's hard to wrap your mind around the concept that a condemnor can take a valuable property interest and by the taking it render it legally worthless because the undivided fee rule protects the state equally if not more than its citizens:

The majority cites Green Bay Broadcasting with approval. This is the case which the court admits, "The unit rule is designed to protect the interests of the condemnor and not to protect the interests of a condemnee." This quote is unnerving to people who believe that our constitutions were designed to protect property owners, not property takers.

Dissent at 23 (citing Green Bay Broadcasting Co. v. Redev. Auth, 342 N.W.2d 27 (Wis. 1983)). See also this report from the Wisconsin Law Journal, paying particular attention to the comment by Professor Gideon Kanner.

Finally, we're sorry, Justices Ziegler and Gableman, it's a cop out to say "we don't like the rule, but we apply it anyway because there's nothing we can do."  We thought the job of supreme court justice included evaluating doctrines and rules to see whether they make sense when applied to the facts in hard cases, and then making exceptions if they don't.

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July 29, 2009

Graphic of rental house in mouse trap
Consumer Alert
Online Rental Ads Could be Phony
In a new twist to an old crime, Nigerian criminals are posting fake house rental ads on a popular online classifieds site. Story

This link has also been added to the following story index categories:
- Cyber Crimes Stories
- White-Collar Crime Stories

 

You are subscribed to Headlines for Federal Bureau of Investigation. This information has recently been updated, and is now available.

 


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July 27, 2009

Apartment Appraiser, Apartment Appraisal

Vacancy Rates for Rental Housing Highest Since ‘96
Apartment Appraiser, Apartment Appraisal
Washington, D.C.--National vacancy rates for rental housing in the second quarter 2009 were 10.6 percent, a 0.4 percent gain from the previous quarter, according to the latest report by the Department of Commerce’s Census Bureau. The Census Bureau found that the rental vacancy rate was higher than the second quarter 2008 rate (10 percent) and higher than the rate last quarter (10.1 percent).
Fannie Mae Supplies $10.1B in Liquidity to Multifamily Industry in First Half ’09


Washington, D.C.—Fannie Mae announced that it has provided $10.1 billion in debt financing for the multifamily rental housing market in the first half of 2009.  

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Hotel Appraiser, Hotel Appraisal

Register Now For Free Bonus Content Hotel Appraiser, Hotel Appraisal
Register for RealShare HOTEL INVESTMENT SUMMIT, September 10th at the Marriott Marquis in New York City, and you'll gain networking opportunities with the nation's hospitality-market and market strategies needed to survive the downturn and find opportunities.

You'll also gain free access to Incisive Media's newest hotels webinar, Distressed Hotels: How Bad Will it Get?. During this hour-long session, recorded earlier this month, you'll hear forecasts and strategies from Chuck Bedsole of Alvarez & Marsal Real Estate Advisory Services, Jerome F. Cataldo of Hostmark Hospitality Group, Geoff Davis of HREC Investment Advisors, Jim Holthouser of Hilton Hotels Corp. and Richard A. Warnick of Warnick + Co. LLC.

Simply register online for RealShare HOTEL INVESTMENT SUMMIT and within your confirmation email, you'll be sent a direct, payment-free link to the Distressed Hotels session.

RealShare HOTEL INVESTMENT SUMMIT has become an annual event for over 350 hospitality industry executives. Register now to network with the industry leaders at the premier information and networking conference for the hotel investment industry. Hotel Appraiser, Hotel Appraisal
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Hud Appraiser, HUD Appraisal


From: HUD USER News
  Hud Appraiser, HUD Appraisal
HUD USER has posted a Comprehensive Housing Market
Analysis report for the Chattanooga, Tennessee-Georgia
housing market area (HMA). Coterminous with the
Chattanooga, Tennessee-Georgia Metropolitan Statistical
area, the HMA contains Hamilton, Marion, and Sequatchie
Counties in southern Tennessee and Catoosa, Dade, and
Walker Counties in northwest Georgia.
 
The regional economy is largely based on the government,
trade, manufacturing, and the education and health
services sectors. Nonfarm employment has been slow,
increasing at 0.4 percent a year since 2000. A new $1
billion Volkswagen Group of America, Inc. assembly plant,
however, scheduled to be completed in 2011, is expected
to increase employment in this sector by an average of
1.5 percent annually between January 1, 2009 and January
1, 2012.
 
Housing sales in the HMA are currently weak, with an
excess inventory of unsold homes. During 2008, the median
price of a new home fell by 9 percent (from $145,200 to
$131,900), while the median sales price of an existing
home increased by 5 percent (from $130,000 to $136,600).
Rentals are also weak, with a vacancy rate of 8 percent.
 
Compiled by field economists in HUD's Office of Policy
Development and Research, this report presents economic,
demographic, and housing inventory data that are useful
in foreseeing changes in the housing market. Our analysis
describes the Chattanooga, Tennessee-Georgia HMA from
1990 to 2000 and from 2000 through 2008, and projects
anticipated market activity during the three-year period
from January 1, 2009 to January 1, 2012.
 
As with previous CHMA reports examining housing market
areas across the nation, this analysis is available
at www.huduser.org/publications/econdev/mkt_analysis.html
and can be downloaded at no cost. 
 
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July 26, 2009

commercial appraiser, commercial appraisal

What is Net Leased Real Estate?
commercial appraiser, commercial appraisal
Net leased real estate can be everything from a Walgreen Drug Store to a dollar store such as Family Dollar and Dollar General. Other net lease properties include bank buildings such as Bank of America, food such as McDonalds, Burger King or Taco Bell or auto service and part stores like Bridgestone/Firestone or an Advance Auto. Also included are FedEx distribution centers.

Net lease properties are typically free standing buildings that are leased to tenants for a 10 to 25 year term. They offer the benefit of little or no management responsibilities as the tenant pays for all, if not most of the expenses. The investor receives their rent with little to no other involvement.

Who Buys Net Leased Properties?
Investors who wish to have outright ownership of their investments. The alternative would be to own a security in the form of a mutual fund or REIT. A major advantage of 100% direct ownership is control and the ability to defer future capital gains by doing a 1031 exchange when the property is sold. The lack of immediate liquidity that a mutual fund or REIT can offer can be a drawback for some investors and should be considered carefully before investing.

How are Net Leased Properties Valued?
Net lease properties typically are valued using their Capitalization Rate also referred to as Cap Rate. The cap rate reflects the value of a stream of economic benefits discounted for time and risk. Generally this is computed by as a pretax cap rate using the Net Operating Income (NOI). NOI is income less all expenses before debt service. The Cap Rate is the NOI divided by the purchase price. Conversely the NOI divided by the Cap Rate will equal the purchase or selling price.

Example:
NOI = $100,000/10% = $1,000,000 Purchase or Selling Price
NOI = $100,000/$1,000,000=10% Cap Rate

How is a Cap Rate Determined?
Some of the major considerations are:

  1. The credit worthiness of the tenant (see Tenant Credit Rating under Resources on upper right)
  2. The length of the lease, typically 10 to 25 years.
  3. The type of lease, triple net (NNN) or double net (NN). See below for definition.
  4. Type bumps or increases if any.
  5. Cost of financing
  6. Strength of the demographics of the property location
  7. Nature of the improvements. Are the improvements easily converted for another tenant or are they special purpose that would require significant expense and time to convert before re tenanting?
  8. Age and condition of the improvements

 

The more positive the above factors, the lower the Cap Rate or the higher the value of the property related to its income stream. Conversely if the above factors are weak the Cap Rate will be higher and the resulting value will be lower reflecting the greater risk of the investment.

http://www.tm1031exchange.com/

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commercial appraiser commercial appraisal

Following are a few of the over 1,200 available properties that can be found at commercial appraiser commercial appraisalTM1031Exchange. Current market conditions continue to produce buy opportunities not seen in recent memory.

REO Properties/Debt
Purchase commercial, multi-family and residential properties or debt at 50% to 60% discounts. Utilize TM 1031 Exchange’s property receiver/bank network to find the property you are looking for. Click REO to find out more.
Tenant in Common (TIC)
 Medical, multi-family, retail, office offerings providing
strong cash flow up to 9.5%. Minimum investment starting
at $50,000. Click Tenant in Common for a list.
Non Tenant in Common Properties
Bradenton, Florida
Price: $672,000
Cap Rate: 9.1%
Comments: 2 six-unit buildings located on a residential, single family home street
Pueblo, Colorado
Price: $1,000,000
Cap Rate: 9.07%
Comments: Dollar General corporate signed a 10 Year NN Lease scheduled to commence on August 15th, 2009. 9,000 sf building being built on an acre of land. Over 100,000 people within 5 miles.
St. Petersburg, Florida
Price: $1,275,000
Cap Rate: 12.1%
Comments: 90% Occupied. $32,692 per unit. Amenity Close including a new middle school, post office and down town St Petersburg.
Tampa, Florida
Price: $1,402,258
Cap Rate: 6.2%
Comments: 15% increases every 5 years. 15 of 20 yrs remaining on lease. Over 230,000 within 5 miles
Newport News, VA
Price: $1,550,000
Cap Rate: 9.5%
Comments: National Tenant with over 1,000 locations, 6 years remaining on the existing lease. 3% lease rate increases every 3 years. Upside in renting 5,500 vacant retail space. Possible seller financing. Excellent demographics and economic diversity.
Holly Hill (Daytona MSA), Florida
Price: $1,625,000
Cap Rate: 8.75%
Comments: Over 100,000 within 5 miles. Heavily traveled corridor. Close to Daytona Motor Speedway.
Evergreen, Colorado
Price: $3,270,000
Cap Rate: 8.04%
Comments: $176 per square foot. 100% leased to Bank of America with new
5 yr lease renewal
Saint Joseph, Missouri
Price: $8,900,000
Cap Rate: 9.5%
Comments: 94.4% Occupied with predominantly national tenants. All NNN leases. Assumable non-recourse financing with 6.5 years remaining, a 77% LTV at a 5% interest rate.
Various Cities, Illinois
Price: $12,800,000
Cap Rate: 11%
Comments: Portfolio of 7 Applebee’s (Franchisee) in Illinois2% Annual Increases. Seller motivated.
Houston, Texas
Price: $15,000,000
Cap Rate: 13.33% Actual
Comments: 88% Occupied on 40 plus acres
Various Cities and States
Price: $18,200,000
Cap Rate: 11%
Comments: 28 locations in Alabama, Florida and Georgia. Aggregate building sf of 60,767 sf and over 528,000 sf of land.
If you would like further information for any of these opportunities please reply to this email or call us toll free at 1-877-486-1031 (001 310 264 0497 International).
Visit us at TM 1031 Exchange for a complete list of currently available investment properties. 
commercial appraiser commercial appraisal
Sincerely,
Tim Marshall
TM 1031 Exchange, Inc.
tim@TM1031Exchange.com
(877) 4 TM 1031 (Toll Free)
Please feel free to click on the forward e-mail link below to send to other interested investors.
To ensure that you receive all property information from TM 1031 Exchange, please add team@tm1031exchange.com to your email Contacts/Address Book or Safe List." 
Information obtained from sources deemed reliable but not guaranteed. Investors should conduct their own independent investigations and rely only on those results
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Commercial Appraiser, Commercial Appraiser

CORPORATION & ENTERPRISE LAW, PROPERTY LAW & REAL ESTATE, SECURITIES LAW
Azure Ltd. v. I-Flow Corp., No. S164884
Court of Appeals judgment is affirmed where a corporation is entitled to immunity under the Unclaimed Property Law only if it complies with the Law, and thus does not immunize corporations like defendant who allegedly transfer nonescheated shares to the state without giving the required notice. Read more in HTML...   Read more in PDF...

 Commercial Appraiser, Commercial Appraiser

 

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July 25, 2009

Forensic Appraiser, Forensic Appraisal

Friday Round-Up Forensic Appraiser, Forensic Appraisal

Posted: 24 Jul 2009 10:54 AM PDT

Here's what piquing our interest today:

  • Not! - It looks like our grandiose prediction that "Feds Likely To Seek Cert In Casitas (Water Rights Taking Case)" turned out to be wrong since nothing is showing on the SCOTUS docket and the deadline was last Friday. Maybe the SG decided, after some deliberation, that it was better to give this one a pass. In Casitas Municipal Water District v. United States, 543 F.3d 1276 (Fed. Cir. 2008), the Federal Circuit held that contractual water rights were taken when the federal government required the landowner to construct a fish ladder and divert water in order to protect endangered steelhead trout. The court held that the requirement resulted in a physical diversion of water for public use. The Federal Circuit's opinion is posted here, and the court's denial of rehearing and rehearing en banc -- which generated concurring and dissenting opinions, see 556 F.3d 1329 (Fed. Cir. 2009) -- is available here.
  • 9/11 Case Could Bring Broad Shift on Civil Suits - The NY Times weighs in on Iqbal, the "most consequential decision of the Supreme Court's last term." That's the one where the Court held that instead of vague "notice pleading," a complaint must state a "plausible claim for relief," which is measured not by the allegations in the complaint, but the district court's "judicial experience and common sense." This case is of particular interest to property owners challenging pretextual public use in federal court.
  • Palmer/Sixth Street Properties, L.P. v. City of Los Angeles, No. B206102 (Cal. Ct. App. July 22, 2009) - a decision from California's Second Appellate Division about affordable housing. State law specific, and deals with technical issues of whether a  municipal ordinance is preempted by state law, but an interesting read even for those who do not practice in the Golden State.
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<a href="http://www.harriscompanyrec.com/" title="Commercial Appraiser" target="_blank">Commercial Appraiser</a><br>A full service commercial appraiser and real esatate consultant

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Commercial Appraiser Commercial APpraiser

When a closely-held business changes hands, substantial tax dollars may be at stake. However, valuing such a company is an inexact science. Commercial Appraiser Commercial APpraiser

Therefore, if you or one of your clients inherits a family business, here are two important considerations:

Get a thorough appraisal from a respected professional and go to court if necessary.
Fight for a lower value for tax purposes, as long as you have a solid argument.

That's the lesson learned from the Estate of Simplot. In this case, the business contained both Class A voting shares and Class B non-voting shares. The estate held 23 percent of the voting stock in the Idaho company, which was involved in processing frozen food potatoes and other businesses. The IRS assessed a "control premium" and the Tax Court agreed. But the family fought back and lowered its tax bill.

http://www.cpa-resource.com/articles/view.php?article_id=869

 

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Commercial Appraiser, Commercial Appraisal

The CPA vs. The Cost Segregation Study, Commercial Appraiser, Commercial Appraisal

Many if not most tax advisors are reluctant to perform cost segregation studies. With new technology however, the tax benefits of such studies far outweigh the obstacles to completion - even for clients who own smaller investment properties.

In brief, cost segregation studies separate personal property and land improvements that depreciate in five and 15 years from real property that depreciates, in the case of residential rental property, in 27.5 years. Seeking out faster write-offs through cost segregation results in greater cash flow, since the payment of federal and state income taxes is deferred. Cost segregation studies also let taxpayers write off obsolete components and can even lower local realty-transfer taxes.

Example of First Year* Savings Before and After Cost Segregation Study

http://www.cpa-resource.com/articles/view.php?article_id=339

 

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July 24, 2009

commercial appraiser, connercial appraisal

COMMERCIAL ISSUES
NAR Advocacy Helps Shape Waxman/Markey
The American Clean Energy and Security Act passed the House this month. The Bill has some positive changes, and the efforts of NAR ensured that it had the interests of commercial practitioners in mind. There is no provision for federal energy audits or energy efficient labeling on existing buildings. Read an advanced release about this legislation prior to its publication in the summer issue of the RCA Report.!  Read more...
http://www.realtor.org/narlservredirect.nsf/pages/NT000013D2?OpenDocument&WT.mc_id=LS072209&CAT=Comm
commercial appraiser, connercial appraisal
Heavy Loan Losses Anticipated as 2nd Qtr Bank Results Reported
The Joint Economic Committee is working with Treasury on a plan to head-off rising defaults on commercial mortgages. According to a WSJ analysis, losses in commercial real real estate could reach $30 billion by year end. Read more...
http://www.realtor.org/narlservredirect.nsf/pages/NT000013D6?OpenDocument&WT.mc_id=LS072209&CAT=Comm
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July 22, 2009

commercial appraiser, commercial appraisal

  RCA Education Connection

 

If you are looking for affordable commercial education then register today for one of the RCA's upcoming webinars. On July 23 and 24, the RCA in partnership with Top Dogs is offering two webinars at a deeply discounted rate of $49 per session. The two hour sessions are regularly priced at $89, but if you use one of the following discount codes fhosuddnkr or rihequpimu, you will receive an immediate $40 discount. The RCA/Top Dogs webinars will give you the opportunity to learn from Peter Droubay and Bob McComb, the co-creators of the Top Dogs commercial real estate training programs. On August 12, the RCA is offering a FREE one hour webinar featuring Eric Boles, a 2009 RCA Signature Series speaker.

 



The July 23 webinar "Property Valuation: How to Value Commercial Property" is designed to teach a step by step process for conducting outstanding comparative market analysis within the commercial markets. The July 24 webinar "The Most Under-Utilized Strategy for Generating Leads and Increasing Client Loyalty" is designed to give attendees a step-by-step process for employing one of the most powerful marketing strategies available--public speaking. The August 12 webinar "Momentum Changers" will take a look at how you can change your momentum when you are fearful or in self imposed ruts. Learn some of those "game changing" things you can do to break the cycle and get to "Next Level Living" both personally and professionally.

Webinar Session Description and Registration:

July 23: "Property Valuation: How to Value Commercial Property" (beginner level)

Webinar Session Description and Registration:

July 24: "The Most Under-Utilized Strategy for Generating Leads and Increasing Client Loyalty" (experienced level)
Webinar Session Description and Registration:August 12: "Momentum Changers" (all levels)


All sessions are first come, first-served and limited to 200 attendees. Visit the RCA Education web page to learn more about the education resources available to you from the RCA and commercial affiliates. For Top Dogs webinar registration questions, contact Top Dogs at 888-894-5772. For general questions, contact the RCA at 800-874-6500. commercial appraiser, commercial appraisal
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commercial appraiser, commercial appraisal

1.2MSF Project on Former Brownfield Site in California Earns LEED Certification
A 1.2-million-square-foot industrial park touted as the largest speculative industrial project in the U.S. became one of the largest overall projects in California to receive LEED certification. Developed by Dallas-based Hillwood, the project was sold to CB Richard Ellis Investors a year ago, but Hillwood staff recently completed the Silver LEED certification process on behalf of the new buyer.
commercial appraiser, commercial appraisal
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July 21, 2009

commercial appraiser, commercial appraisal

Bargain or Bust - 65% Off Skyscraper

commercial appraiser, commercial appraisal

Last week the media reported that a NYC skyscraper sold for about $600 million, and according to Real Capital Analytics the prior purchase price was $1.74 billion. The property has 1.8 million gross square feet, 1.6 million rentable square feet, and is 50% vacant.

From the information provided by the media, one would conclude the new buyer stole the property. After all, the property was purchased at a 65% discount from its previous purchase price only 2.5 years ago. For the naive, the story would end there and open the door to believing they found the deal of the century. Before running out to buy the next property at a discount to its previous purchase price, or giving money to a proclaimed bottom-feeder buyer, let’s look at all the facts.

Read full article...
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July 20, 2009

Apartment Appraiser, Apartment Appraisal


From: HUD USER News Apartment Appraiser, Apartment Appraisal
 
A jury of knowledgeable design, community planning, and
housing professionals representing The American Institute
of Architects (AIA) and the U.S. Department of Housing
and Urban Development (HUD) has selected four outstanding
projects as national models of affordable housing.
Recipients of the AIA/HUD Secretary's Housing and
Community Design Award for excellence in residential
housing design are:
 
The Bridge (Homeless Assistance Center of Dallas, Texas)
 
The Bridge won the 2009 Community-Informed Design Award,
which recognizes design that supports physical
communities in rebuilding social structures and
relationships weakened by outmigration, disinvestment,
and the isolation of inner city areas. Widely accepted by
the homeless, a facility designed for 400 now handles up
to 1,000 people a day, and more than 500 individuals have
received training, counseling, secured employment or
permanent housing. Results are tangible and the
surrounding neighborhood is revitalizing; crime has
declined by 18 percent.
 
Project Place - Gatehouse of Boston, Massachusetts
 
Project Place won the 2009 Creating Community Connection
Award, which recognizes projects that incorporate housing
within other community amenities for the purpose of
either revitalization or planned growth. Project Place is
a new six-story, mixed-use building developed by a
nonprofit agency that offers job training, work
experience, education, housing, and support services to
men and women experiencing homelessness.
 
Bridgeton Neighborhood Revitalization of Bridgeton, New Jersey
Irvington Terrace of Fremont, California
 
Bridgeton Neighborhood Revitalization (BNR) and Irvington
Terrace both won Excellence in Affordable Housing Design
awards. This award recognizes architecture with overall
design excellence that responds to the needs and
constraints of affordable housing. BNR used HOPE VI funds
to revitalize an historic urban neighborhood by erecting
period-design housing on carefully chosen scattered sites
that had become physical barriers to pedestrian/social
connectivity and often acted as havens for illegal
activity. Irvington Terrace, a 100-unit low-income rental
housing development, uses progressive modernist forms in
the context of a traditional village square-like
development. Apartments feature stoops and porches to
encourage resident interactions and are oriented to the
square, which offers amenities such as a swimming pool;
fountain; and sunny, shaded, planted areas.
  Apartment Appraiser, Apartment Appraisal
More information on these winners and the Secretary's
Award program is located
at http://www.huduser.org/research/AIA-2009.html
 
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Forensic Appraiser, Forensic Appraisal

Must A Property Owner Seek A Change In The Law In Order To Ripen A Takings Claim?

Posted: 20 Jul 2009 01:40 AM PDT Forensic Appraiser, Forensic Appraisal

In a notable case worth following, the Hawaii Intermediate Court of Appeals is considering a new appeal involving whether a per se regulatory takings claim is ripe under Williamson County Regional Planning Comm'n v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985), and whether in order to ripen a takings claim, a property owner is obligated to seek a legislative change to the regulations applicable to the property.

In Leone v. County of Maui, No.29696, the trial court refused to consider a property owner's claim that state law and local regulations resulted in a regulatory taking of beachfront property on the south shore of Maui. The Opening Brief filed by the property owner is available here.

The case involves an undeveloped 1/2 acre beachfront parcel, one of 11 similarly-situated lots. The zoning on the property is “Hotel-Multifamily,” which permits residential use. The Community Plan (Maui County’s General Plan) designates the property as “Park” because in the 1980’s, the County sought to condemn the 11 parcels for a public beach park. After acquiring two of the parcels, however, the County ran out of money and the other 9 remain in private ownership, and several of them are fully or partially developed.

The entirety of the property is within the Special Management Area, a special zone subject to an additional layer of regulation under the Hawaii Coastal Zone Management Act, Haw. Rev. Stat. § 205A-1, et seq. The CZMA requires plan-zone consistency, meaning that before any "development" within the SMA can go forward, the zoning must be consistent with the Community Plan. See GATRI v. Blane, 962 P.2d 368 (Haw. 1998). The CZMA exempts a single-family residence from the definition of "development" for which a SMA permit is needed, unless the home will have a "cumulative impact, or a significant environmental or ecological effect" on the SMA. Haw. Rev. Stat. § 205A-22.

The CZMA is administered by the counties, and if a Maui property owner believes a proposed use is exempt, under the local rules she must seek an exemption determination from the county planning department and request a ruling that no SMA permit is required. Under Maui's administrative rules, an application for development cannot be processed unless the zoning is consistent with the Community Plan. Consequently, when the property owner filed a request for a determination that a SMA permit was unnecessary, the county refused to process it.

Williamson County requires that property owners initially file their regulatory takings claims in state court, and the property owner did so, asserting the regulations permitted no economically beneficial use of the land. The trial court granted summary judgment to the County, holding among other things, that in order to ripen the takings claim, the property owner had an obligation to change the Community Plan. To change the Community Plan designation on a parcel requires the County Council to enact an ordinance (in other words, it is a legislative act), and requires the production of an Environmental Impact Statement.

The appeal presents several issues, including:

  • Whether the County has made a final determination of the use the owners can make of the property.
  • Whether there are any "effective remedies" which the owners might seek.
  • If there are remedies, whether those remedies are futile.

The County's brief is due 40 days after the filing of the Opening Brief, so look for it in late August or early September.

Forensic Appraiser, Forensic Appraisal
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James Pontak, Pontak Appraisals - Appraiser

We do not typically pay much attention to the bottom feeders in our industry but for Mr James Bontak, and the public safety, we are making a special mention.  This is how he reacted to a Appraiser Trainee Add we posted on Craig's List:

-----Original Message-----
From: james pontak [mailto:jjpontak@sbcglobal.net]
Sent: Monday, July 20, 2009 10:56 AM
To: job-ybmvy-1273512756@craigslist.org
Subject:

"Are you crazy?

This is sure as hell  not what OREA had in mind, this is servitude and illegal.

SCREW YOU ASSHOLE"
.
: james pontak [mailto:jjpontak@sbcglobal.net]
Sent: Monday, July 20, 2009 10:56 AM
To: job-ybmvy-1273512756@craigslist.org
Subject:

I have just one question for you is this the kind of person you want working for you?  Remember the name James Pontak, he is an AL which means he is on the bottom rung of the porfessional appraiser licencing ladder.

Address:Pontak Appraisal
11121 Homeway Dr
Garden Grove, CA  92841-1111

 

Name: Cochise
E-Mail: Cochise@justice.com
Subject: Re: James Bontak, Bontak Appraisal-Appraiser, OC, FHA Appro
Body of Message:

James Pontak, responce to another web blog. Limited vocabulary.

Re: [WinTOTAL Group] Broadcast Appraisals
"Hey Mark,

I gave up on this type of outfit, why should we accept work in this fashion? The guy with the fastest Balckberry wins.

SCREW IT,"

Jim Pontak
FHA APPROVED
Real Estate Appraiser
11121 Homeway Drive
Garden Grove, CA 92841
714-590-1537 O.
714-345-5604 C.
714-590-0004 F.
jjpontak@...
WWW.PONTAKAPPRAISAL.COM

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July 18, 2009

forensic appraiser, forensic appraisal


Wisconsin Supreme Court: Property Valueless, So Lessee Not Entitled To Compensation

Posted: 17 Jul 2009 12:51 PM PDT forensic appraiser, forensic appraisal

"Would that John Adams could rise from his grave to speak for the VFW, and for property rights in twenty-first century America. I believe he would observe that, if the VFW's property can be taken without compensation, no property is secure."

So says the dissenting Justice in City of Milwaukee Post No. 2874 Veterans of Foreign Wars of the United States v. Redevelopment Authority of the City of Milwaukee, No. 2006AP2866 (July 17, 2009), a case in which a sharply divided court (4-3-1) held that under the "unit rule," the VFW's property was worthless and the VFW was not entitled to the $300,000 just compensation award.

More detail to follow after a chance to digest the various opinions.

forensic appraiser, forensic appraisal
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July 17, 2009

Commercial Appraiser, Commercial

http://www.harriscompanyrec.com/Appraisal_Appraiser_Custom_Search_Results_CSE.html

Harris Company, REA/C Custom Search Engine

Commercial Appraiser, Commercial

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 commercial appraiser, commercial appraisal

Guest Blog: LED Lighting on your Property

You may have heard about LED lighting in the news recently. There are several cities around the country converting their street lights to be LED street lights. No more metal halide or high power sodium bulbs. As you would imagine these types of streetlights need to be quite powerful to light up the blacktop 25 feet below the pole. Sure enough they are bright! ScottYahraus

So what about LED lights on your property in the common areas that you are paying the electricity on? Well such replacement bulbs exist and they make CFLs look bad.

There are two types of LED bulbs; high power and low power. You have most likely only seen low powered bulbs which hardware stores and Costco try and sell. The problem with low power bulbs is that they do not give off enough lumens, light. High powered bulbs do exist and are fantastic. Visit www.standard-led.com to view great options for your property.

Dave F. of Los Angeles, CA, purchased 177 LED bulbs for the common area of this 125 unit complex in Orange, TX.

He replaced 65 watt incandescent bulbs with 6 watt LED bulbs. This measured a savings of over 90% on his utility bill for the portion dedicated to lighting. This positive changed saved Dave F. $37.18 PER BULB per year starting in year 1. At an 8% CAP rate Dave F. raised the value of his property by $82,261! ($37.18 X 177 =6,580.86 ÷ .08 = $82,261)

(Scott Yahraus is the president of Apartment Energy Consultants. Apartment Energy Consultants is the governing body that certifies multifamily properties as being “National Green Apartment Certified visit them at www.GreenRetrofitter.com, 818-854-6850, or email Scott directly at Scott@GreenRetrofitter.com) commercial appraiser, commercial appraisal

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July 17, 2009 commercial appraiser, commercial appraisal

'Capital Insights' with Jack Kern: The Right to Rent Plan Will Hurt REITs

"I think you're bluffin'." John Wayne in The Man Who Shot Liberty Valance, (1962) (C) John FordJack Kern

In what I can only attribute to political gamemanship, the Right to Rent program is making its way around the Hill, seeking support for what will surely amount to be the epitome of a liberal agenda. According to industry pundits, labor unions and very socially liberal organizations, those renting homes that are foreclosed need protection against losing their housing due to proceedings designed originally to turn the asset and get it back on the market as soon as possible. Rather than just asking for time to get re-established, the new effort seeks to gain time periods as long as 20 years, supposedly with the idea that it will stabilize neighborhoods and help limit housing blight. In some instances, these very renters are the ones that lost their homes through foreclosure in the first place.

In the last Congress (known as the dumb one), Rep. Raul Grijalva introduced the Saving Family Homes Act, designed to offer former homeowners the ability to rent their house after foreclosure for up to 20 years. Grijalva represents the 7th Congressional District in Arizona and is a Democrat, a seemingly deadly combination these days.  commercial appraiser, commercial appraisal

While that effort went no where, it has been replaced by the newly reconstituted Right to Rent Plan, which has as its cornerstone the premise that homeowners in foreclosure can, by right, rent their homes for long periods (perhaps 10 to 15 years) at market rates, determined by independent appraisals. And we all know what has happened with the appraisal industry.  http://cpnmhn.typepad.com/out_and_about/

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July 16, 2009

commercial appraiser, commercial appraisal

green |
 
Hotel Indigo's First LEED Property Debuts in San Diego
The property composts organic matter, offers an on-site recycling program, and features two green roofs. Read more...

Chipotle Is First Restaurant Designated LEED Platinum
The Gurnee, Illinois, location was built last year under the LEED for Retail pilot program.
Read more...
 
commercial appraiser, commercial appraisal
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Real Estate & Property Law

Buyers of Former Meth Homes Battle Ailments, File Suits commercial appraiser,commercial appraisal

Posted Jul 15, 2009, 10:18 am CDT
By Debra Cassens Weiss

Possibly tens of thousands of homes have been used to make methamphetamine, causing health problems and financial worries for new owners and unsuspecting landlords.

The New York Times chronicles the problems of homeowners Rhonda and Jason Holt, whose three babies became listless and struggled with breathing problems after they bought a home in Winchester, Tenn. Rhonda Holt battled migraines and her husband had kidney problems.

Later, the Holts learned their home was contaminated with methamphetamine from the previous occupant, and it would cost them $30,000 to clean up the mess. Now Rhonda Holt is working two jobs to pay for the remediation.

At least one unsuspecting homeowner who bought a meth home filed suit against the seller, a real estate agent who bought the home in Stow, Ohio, at a sheriff’s sale before reselling it. Homeowner Andrea Wagner, a single mom, developed eczema and her children had skin rashes and breathing problems after they moved in.

The family quickly left when Wagner discovered the home had been used to make meth, the Akron Beacon Journal (PDF) reported last year. The case later settled under confidential terms, Wagner’s lawyer, Warner Mendenhall, told the ABA Journal.

Mendenhall, who practices in Akron, based his suit on a state law requiring sellers of properties to disclose hazardous materials. After the case drew publicity, Akron and Summit County, Ohio, passed new laws requiring property titles to indicate whether homes have ever contained a meth lab, Mendenhall told the ABA Journal.

The National Law Journal covered Mendenhall’s case and other suits in a story published last year.

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July 15, 2009

Commercial APpraiser, Commercial Appraisal

$________ VERDICT Plaintiff tripped and fell on uneven sidewalk - Ruptured Achilles tendon requiring surgery and casting for eight weeks.

Originally published in The National Jury Verdict Review and Analysis (155535)
Queens County, New York

On March 12, ________, at approximately 11:30 p.m., the plaintiff, a 57-year-old retired licensed practical nurse, was caused to trip and fall on a sidewalk in front of 93-21 2nd Street. She did not seek medical treatment for nine days treated herself at home, believing that she had sustained a sprain of her right ankle. She was subsequently diagnosed with a ruptured Achilles tendon. She sued the City of New York, alleging that she was caused to fall by a broken, uneven sidewalk of which the City had notice. The city acknowledged that it had notice of the defect two years prior to the plaintiff’s fall and that Big Apple had notice of the defect three years prior to the fall, but that the city had failed to make the requisite repairs. The city contended that it was unable to repair the defect in time to prevent the plaintiff’s fall. Commercial APpraiser, Commercial Appraisal

http://www.jvra.com/Verdict_Trak/article.aspx?id=155535

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Forensic Appraiser, Forensic Appraisal

HAWSCT On Nonconforming Uses: You Can't Change What You Didn't Establish

Posted: 14 Jul 2009 02:36 PM PDT  Forensic Appraiser, Forensic Appraisal What do you call an appeal in which the Supreme Court doesn't address any of your five questions presented?

If you are the petitioner's attorneys in Save Diamond Head Waters LLC v. Hans Hedemann Surf, Inc., No. 27804 (July 13, 2009), you'd call it "victory."

In that case -- which was being considered by the Hawaii Supreme Court on secondary cert review -- the petitioners asserted the Intermediate Court of Appeals "gravely erred" (see Haw. Rev. Stat. § 602-59(b)(1)) when it held the Director of the Honolulu Department of Planning and Permitting was within his authority when he concluded a surf school's use of a space in a hotel lobby would be a valid nonconforming use if the school adhered to certain conditions imposed by the Director.

Usually, cases about nonconforming uses aren't exactly the most interesting to read. Commonly known as "grandfathering," and with an origin in theory of vested rights, the law of nonconforming uses is concerned with the scope and nature of a use, the changes to that use over time, and the details of the ordinance governing loss of use and phase-out. The Save Diamond Head Waters case is a bit more interesting, however, since it involves property on the Waikiki Gold Coast at the foot of Diamond Head, and the use at issue reminds us of a business where Elvis might have worked during his Blue Hawaii phase, a surf school.

A Waikiki hotel was constructed in the early 1950's on land presently zoned for apartment uses, but was legally operating as a nonconforming use because the hotel use predated the apartment zoning. One of the lobby spaces was used as one of those typical hotel lobby shops and this use was considered a legal accessory use to the hotel use. Under Hawaii law, the state Zoning Enabling Act, Haw. Rev. Stat. § 46-4 requires the counties in their exercise of their zoning authority to recognize certain uses as nonconforming:

Neither this section nor any ordinance enacted pursuant to this section shall prohibit the continued lawful use of any building or premises for any trade, industrial, residential, agricultural, or other purpose for which the building or premises is used at the time this section or the ordinance takes effect; provided that a zoning ordinance may provide for elimination of nonconforming uses as the uses are discontinued, or for the amortization or phasing out of nonconforming uses or signs over a reasonable period of time in commercial, industrial, resort, and apartment zoned areas only.  In no event shall such amortization or phasing out of nonconforming uses apply to any existing building or premises used for residential (single-family or duplex) or agricultural uses. 

There are all sorts of nuances in the doctrine of nonconforming uses, but the basic concept is pretty simple -- you can't change the rules on someone in the middle of the game, so even though the law may change, it cannot immediately outlaw existing uses of property.

Over time, the lobby shop was used by the hotel to rent out beach and ocean equipment, but eventually, the hotel rented out the space to the surf school. According to the opinion, the "record is unclear when the Hotel's use of Shop #7 ended and its use for commercial purposes began." Slip op. at 23 (quoting ICA opinion). The surf school presently uses the lobby shop as an assembly point for its customers, who are brought in from other locations by shuttles.

Neighbors objected to the school's use, complaining of the usual problems: "noise, congestion, parking issues, vandalism, trespassing and 'other ills[.]'" ICA opinion at 6. The Save Diamond Head Waters group petitioned the Director for a ruling, asserting the use as a surf school expanded the nonconforming use, or was a change in use from the previous use of the lobby shop, to a place where hotel guests could rent surf boards, kayaks and other beach equipment.

The Director determined among other things that the school was allowed to operate as a nonconforming use even though its character had changed from a shop to an assembly point for the surf school because the effects of the use hadn't changed (provided the surf school adhered to the Director's limits about class size and number of students). The Honolulu Land Use Ordinance provides that a nonconforming is permitted to continue even if its actual use changes, provided certain conditions use may change, provided the new use is of the "same nature and general impact."

SDHW appealed to the Zoning Board of Appeals, which affirmed, and then appealed the ZBA's decision to the circuit (trial) court, which vacated the ZBA's decision. The ICA reversed and upheld the authority of the Director to issue declaratory rulings, and as part of that authority could inform the school what uses would keep it within nonconforming status.

 

SDHW applied for a writ of certiorari to the Hawaii Supreme Court (oral arguments posted here), and presented five questions for review, all of them quite naturally dealing more or less with the issue the ICA considered: the Director's authority include telling the surf school what it needed to do to remain a valid change in nonconforming use? See slip op. at 2.

Wait a minute, said the Supreme Court, "we need not consider any of SDHW's additional arguments." Slip op. at 24. Why?  Because in order to change a nonconforming use, you had better not have already discontinued the nonconforming use:

It logically follows that once a nonconforming use is terminated there can no longer be a change in nonconforming use based on the terminated use.

. . .

[T]he party arguing for a change in nonconforming use bears the burden to demonstrate that the prior nonconforming use (1) was an original conforming use of the premises that was established before the change in zoning; or (2) was the result of a valid change in nonconforming use from a prior valid nonconforming use; and (3) neither the original nonconforming use nor the prior nonconforming use has been discontinued.

Id. at 21. The court then looked at the Record and determined the surf school had never introduced evidence that the prior use of the space as a shop was a valid nonconforming use. Id. at 22 ("the Surf School did not meet its burden to prove that there was a legally established prior nonconforming accessory use of Shop #7"). The court concluded that lacking evidence, the Director's finding of fact was clearly erroneous.

 

Bottom line lessons: (1) sometimes, even when you make arguments that are ignored by the appellate court, you win; (2) don't assume an appellate court which has the ability to control its docket is too busy to question the assumptions that the courts, parties, and agencies below relied on; (3) if you don't make your factual record when you have the burden of proof, it could come back to haunt you. Forensic Appraiser, Forensic Appraisal

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July 14, 2009

commercial appraiser, commercial appraisal

From: HUD USER News
  commercial appraiser, commercial appraisal
HUD would like to make owners and managers of public and
assisted housing aware of a new grant opportunity being
offered through the Department of Commerce's National
Telecommunications and Information Administration (NTIA).
As more and more types of transactions related to
government, employment, health, job training, and
education deliver services online, access to broadband is
becoming increasingly necessary. In response, the
Broadband Technology Opportunity Program (BTOP) is making
funding available to connect unserved and underserved
populations to this important infrastructure.
 
BTOP's funding is made available through the American
Recovery and Reinvestment Act (ARRA) to help achieve the
Administration's goal of providing broadband access to
all Americans. Owners and managers of low-income and
affordable housing serve the very populations that BTOP
is attempting to reach, possess existing infrastructure
(including Neighborhood Networks centers), and other
resources that can be leveraged to create a more
competitive grant application, and ultimately, a more
viable and effective project.
 
There are two grant categories within the BTOP that will
be applicable to housing organizations: the Public
Computer Center Grant and the Sustainable Broadband
Adoption Grant. Owners of multifamily housing properties,
Public Housing Authorities, and other housing groups may
wish to submit applications in partnership with
organizations possessing expertise in information
technology delivery and training.
 
Grant applications are being accepted from July 14
through August 14, 2009. Electronic applications will be
available on or about July 31st. Paper applications for
grant requests of less then $1 million will be accepted.
To obtain the Notice of Funding Availability and
application materials, please
go to http://broadbandusa.sc.egov.usda.gov/info_lib.htm.
Informational workshops are being offered by NTIA through
July only. To register, please
visit http://broadbandusa.sc.egov.usda.gov/workshop.htm.
For additional information, please contact:
 commercial appraiser, commercial appraisal
The Broadband Technology Opportunities Program
1401 Constitution Ave, NW
Washington, DC 20230
Tel. 202-482-2048
Email: btop@ntia.doc.gov 
 
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Commercial Real Estate: Do Rising Defaults Pose Systemic Threat? commercial appraiser, commercial appraisal http://jec.senate.gov/index.cfm?FuseAction=Hearings.HearingsCalendar&ContentRecord_id=51399723-5056-8059-76da-8870d70efb74


July 9, 2009

Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee (JEC) will convene a hearing to examine the growing financing problems faced in the commercial real estate market and potential solutions to the credit crisis in the sector. The hearing entitled, “Commercial Real Estate: Do Rising Defaults Pose Systemic Threat?” will take place on Thursday July 9, 2009 at 10 am in room 2226 of the Rayburn House Office Building. The commercial real estate market has been severely stressed by the recession with rising vacancy rates for existing office, industrial, and retail properties and falling prices in the commercial real estate market. Experts will testify about the current difficulties in refinancing existing commercial real estate loans due to the reduced availability of credit and disruptions in the secondary market.  commercial appraiser, commercial appraisal

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Commercial Appraiser, Commercial Appraisal

National Constitution Center Podcast On Kelo

Posted: 14 Jul 2009 01:30 AM PDT

Little-pink-houseThe National Constitution Center regularly posts "We The People Stories," podcasts of "nationally recognized leaders debating and discussing the Constitution."

The latest is about Kelo and eminent domain, and is well worth a listen.

Here's the summary:

A conversation about Kelo v. City of New London four years after the Supreme Court's highly controversial 5-4 decision involving the use of eminent domain to transfer land from one private owner to another to further economic development. Since the 2005 decision, 40 states have passed legislation limiting the state government’s power of eminent domain for economic development. In practice, however, solutions have proven elusive. Guests include investigative journalist Jeff Benedict, author of Little Pink House: A True Story of Defiance and Courage, and attorneys Brian Blaesser and Scott Bullock. Veteran Supreme Court correspondent Lyle Denniston moderates. Program recorded on 06/10/2009.

The mp3 is posted here. More on Little Pink House here.

 

Commercial Appraiser, Commercial Appraisal

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July 13, 2009

Commercial Appraiser, Commercial Appraisal

updated 5:07 p.m. PT, Fri., July 10, 2009

PHILADELPHIA - A Pennsylvania attorney who was released from prison Friday after serving the longest imprisonment on a civil contempt charge in U.S. history said judges have too much discretion in cases like his.

"If I had been convicted of murder in the third degree in Pennsylvania, I would have been out in half the time I was in jail," H. Beatty Chadwick said in a telephone interview with The Associated Press.

A judge ordered Chadwick's release from a county prison in suburban Philadelphia more than 14 years after he was jailed for refusing to turn over millions of dollars in a bitter divorce battle. The case prompted dozens of appeals to county, state and federal courts, twice reaching the U.S. Supreme Court. Commercial Appraiser, Commercial Appraisal

 

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July 12, 2009

Commercial Appraiser Training, Commercial Appraiser Trainee

Commercial Appraiser Training, Commercial Appraiser Trainee

State of California Manditory, 1,500 hours of commercial appraiser training available from The Harris Company, REA/C. The fee for this training is $5.00 - $10.00 per hour, depending on the Trainees Resume. Only the career minded and very interested need apply. 310.337.1973
http://www.harriscompanyrec.com

Commercial Appraiser Training, Commercial Appraiser Trainee

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July 10, 2009

commercial appraiser, commercial appraisal

TODAY IS THE LAST DAY TO REGISTER FOR THE LET'S DO BUINESS 2 WORKSHOP. SCHOLORSHIP APPLICATION SUBMISSION HAS BEEN EXTENDED TIL JULY 15, 2009
The Financial Service Consortium presents…

 

“Let’s Do Business 2”

 

Downtown Los Angeles-July 30, 2009

 

The Financial Service Consortium (Bank of America, Bank of the West, Citi, City National Bank, Comerica, HSBC, JP Morgan Chase, Promerica Bank, Torrey Pines Bank, US Bank, Union Bank of California and Wells Fargo) will host a 1-day business development forum to review contract opportunities for qualified diverse suppliers.  In partnership with its 1st Tier Prime Suppliers and a Coalition of Community Based Organizations, the main goal to provide 1st and 2nd tier business opportunities.

 

List of “Some” 1st Tier Prime Suppliers Attending: AEG Worldwide, Blue Shield of California, CBS, Fox Entertainment, Jones Lang LaSalle, LA World Airports, NBC Universal, Metropolitan Water District of Southern California, Robert Half International, Sempra Energy, Southwest Gas, Walt Disney and USC.

commercial appraiser, commercial appraisal

 

The Date: Thursday-July 30, 2009

 

The Place: Westin Bonaventure Hotel-Downtown Los Angeles

 

The Program Agenda:                                                                            7:30 a.m.-11:30 a.m.-Register, Breakfast, Workshops #1, #2, #3 and   Power Networking.

 

12:00 noon-1:30 p.m.-Scholarship Luncheon.

 

1:30 p.m.-5:30 p.m.-Business Opportunity Fair.

 

Event Website: www.ldb2.com

 

Must Register by Friday-July 10, 2009 at 5 p.m. (PST)

 

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July 09, 2009

commercial appraiser, commercial appraisal

2010-2011 EDITION OF USPAP ADOPTED

The Appraisal Foundation recently announced that the Appraisal Standards Board (ASB) adopted revisions for the 2010-2011 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) at its public meeting in New Orleans. 
The 2010-2011 edition of USPAP will be valid for two years, effective January 1, 2010 through December 31, 2011. As with the current edition of USPAP, the new edition will include guidance from the ASB in the form of the USPAP Advisory Opinions and the USPAP Frequently Asked Questions (FAQs).
The new edition of USPAP is scheduled to be available by October 1, 2009. However, appraisers and users of appraisal services should begin familiarizing themselves with the changes to the document as soon as possible. To this end, the ASB has issued a Summary of Actions document, which explains the changes that are being made and the rationale for those changes. The Summary of Actions is available by visiting the following link to The Appraisal Foundation’s website:

http://commerce.appraisalfoundation.org/html/Docs/2009_ASB_summary_of_actions.pdf

Most of the revisions that will become effective on January 1, 2010 involved improving the clarity, understandability and enforceablility of the ETHICS RULE, the COMPETENCY RULE and STANDARD 3: Appraisal Review, Development and Reporting.

·        A requirement was added to the Conduct section of the ETHICS RULE, stating that, prior to accepting an assignment (and if discovered at any time during the assignment), an appraiser must disclose to the client and in the report certification any services regarding the subject property performed by the appraiser within the prior three years, as an appraiser or in any other capacity.

·        The appraiser’s obligation to allow a client access to his or her workfile when providing a Restricted Use Appraisal Report was removed.

“The change to the Conduct section of the ETHICS RULE is significant,” said Sandra Guilfoil, Chair of the ASB, the Foundation Board that promulgates USPAP. “It creates a new requirement for appraisers to disclose, up front to prospective clients, any involvement the appraiser might have had with the property within the past three years.” 

The ASB believed this new requirement was necessary for public trust.  “In a current climate with a focus on things like transparency in financial transactions, the ASB did not believe that USPAP was adequately serving public trust by allowing an appraiser to complete an assignment without initially notifying the client of any recent involvement with the property. The ASB believes the client has a right to know about an appraiser’s involvement and make the decision whether or not to engage the appraiser in that particular assignment,” said Guilfoil. 

 In fact, the ASB believed this particular revision was so important that it issued a series of Q&A’s on this topic in April 2009, providing guidance to appraisers almost eight months before the change takes effect. “We understand this new obligation may be unpopular with some appraisers and are doing our best to provide them with guidance,” Guilfoil stated.

The Appraisal Foundation to Offer Online Versions of National USPAP Courses

Online Platform Tailors Education to the Individual Skills of Appraisal Students Nationwide
The Appraisal Foundation and CompuTaught, a leading developer of computer-based real estate education and part of Cengage Learning, have partnered to develop online versions of The Appraisal Foundation’s 15-Hour National USPAP Course, 7-Hour National USPAP Update Course and Instructor Recertification Course for individuals who are AQB Certified USPAP Instructors. 
All real property appraisers are required to take the 15-Hour National USPAP Course, or its equivalent, as part of their education to earn a state credential. All state-licensed or certified real property appraisers must take the 7-Hour National USPAP Update Course, or its equivalent, every two years.  
The online versions of these courses will be offered through the CompuTaught learning system and will begin with the 2010 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).  Both the 7-hour and 15-hour courses will be available in the Fall of 2009.  They will be made available and marketed to all education providers through CompuTaught.  As is the case with the classroom version of the National USPAP Courses, The Appraisal Foundation will not be offering the online course to students directly.  The Instructor Recertification Course will also be offered in the Fall of 2009 through The Appraisal Foundation to more than 600 AQB Certified USPAP Instructors.
The CompuTaught learning system is a dynamic online learning system that enables students to maximize their educational potential. The system will automatically tailor property appraiser instruction to fit the needs of each individual student to ensure mastery of and fluency in the subject matter.
“The Appraisal Foundation’s goal was to effectively translate our in-class expertise into a successful distance-learning course format,” said David Bunton, President of The Appraisal Foundation. “After reviewing CompuTaught’s online platform, we knew that it offered us the best online vehicle to help real property appraisers across the country master and become fluent in this essential appraiser content.”
“We applaud the Foundation for raising the bar and expanding its program access to students from across the country,” said Bud Hunsucker, Vice President CompuTaught Business Development & School Programs. “We’re happy to support their efforts and make their courses conveniently available to more existing and aspiring property appraisers who may not be able to attend their courses in person.”
For more information, visit: http://www.computaught.com/.

The Appraisal Foundation Seeks Candidates for Vacancies on the AQB and ASB

The Appraisal Foundation is in the midst of its annual search for qualified candidates to serve on the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).  Completed applications for these vacancies must be received by August 14, 2009.  
There are up to two vacancies on the AQB with both incumbents eligible for re-appointment. There are three vacancies on the ASB with two incumbents eligible for re-appointment.  For the third vacancy on the ASB, the Board of Trustees is specifically interested in individuals with a background in the valuation of personal property. 
The Appraisal Foundation is always interested in expanding the diversity of all Boards by considering applications from business leaders with an interest in valuation or involved in various appraisal disciplines such as business valuation or personal property.
Background and Qualifications
The AQB is responsible for setting minimum qualification criteria for state licensure and certification of real estate appraisers and has established voluntary qualification criteria for personal property appraisers.  Familiarity with appraiser qualifications is a pre-requisite of service on the AQB, and a minimum of ten years of appraisal experience is required.  The AQB meets four times per year for approximately ten days in total.  Individuals serving on the AQB are compensated for their time and are reimbursed for travel expenses.  The individuals selected for the AQB positions will serve a term of up to three-years commencing January 1, 2010.  
The ASB is charged with developing, interpreting and amending the Uniform Standards of Professional Appraisal Practice (USPAP).  Familiarity with USPAP is a pre-requisite of service on the ASB, and a minimum of ten years of appraisal experience is required.   The ASB meets five times per year for approximately fifteen days in total.  Individuals serving on the ASB are compensated for their time and are reimbursed for travel expenses.   The individuals selected for a position on the ASB will serve a term of up to three-years commencing January 1, 2010.   

Application packages for all positions outlined above are now available on-line at the Foundation web site:  http://www.appraisalfoundation.org/asb_aqb_apply

If you would like to request an application package via email or if you have questions please feel free to contact Anne Raley (anne@appraisalfoundation.org). When requesting information on the applications via e-mail, please use the phrase "2009 AQB/ASB APPLICATION INFORMATION" in the subject line, and please include your full name, mailing address and phone number. 

The Appraisal Foundation Seeks At-Large Candidates for the Education Council of Appraisal Foundation Sponsors (ECAFS)

The Appraisal Foundation has one vacancy for an At-Large position on the Education Council of Appraisal Foundation Sponsors (ECAFS) with the incumbent eligible for re-appointment to the council.
The Appraisal Foundation has one vacancy for an At-Large position on the Education Council of Appraisal Foundation Sponsors (ECAFS) with the incumbent eligible for re-appointment to the council.
ECAFS is one of five advisory councils administered by the Foundation. Until 2007, membership in ECAFS was limited to representatives to the Foundation’s Sponsoring Organizations and the Association of Appraiser Regulatory Officials (AARO). 
The mission of ECAFS is to ensure public trust in the appraisal profession by promoting professional competency, ethical standards and quality education. The principal duties of ECAFS include serving as the primary educational resource to The Appraisal Foundation and offering guidance and resources to the Appraisal Standards Board (ASB) and Appraiser Qualifications Board (AQB) with regard to educational offerings and qualifications matters as they relate to education.
ECAFS desires to appoint organizations representing a broad variety of backgrounds. In reviewing prospective At-Large Members, consideration will be given to:
  • Organizations representing users of appraisal services.
  • Organizations representing any disciplines covered by the Uniform Standards of Professional Appraisal Practice (USPAP).

  • Organizations with extensive background in academia.

  • Organizations representing the consumer public with regard to valuation related issues.

  • Organizations with established communications with a broad variety of appraisal education providers.

At-Large members of ECAFS will appoint a primary and secondary representative. The term would be for two years, effective January 1, 2010.  Member organizations and their representatives are not compensated for time; however, the Foundation will reimburse travel costs for one representative to each meeting.
The deadline for completed applications is August 14, 2009. For more information, or to request an application, please contact Arika Cole, Council Administrator at 202.624.3052 or arika@appraisalfoundation.org.

The Appraisal Foundation Seeks Consumer Interest Candidate for Board of Trustees
The Appraisal Foundation is searching for a qualified candidate to serve on its Board of Trustees.  As required by the Foundation Bylaws, the seat is specifically earmarked for an individual from a consumer interest group

Completed applications for this vacancy must be received by September 11, 2009

The Board of Trustees of The Appraisal Foundation is charged with funding the work of and appointing members to the AQB and ASB, as well as providing oversight of these two Boards.  The Board of Trustees meets twice a year, in the Spring and Fall. Trustees are reimbursed for travel expenses and are not compensated for their time.  The individual selected for this position on the Board of Trustees will serve a three-year term commencing January 1, 2010.  

The Appraisal Foundation is interested in expanding the diversity of its Board by considering applications from business leaders with an interest in valuation or involved in various appraisal disciplines.
 
The application package for the vacancy outlined above is available on-line at the Foundation web site:  http://www.appraisalfoundation.org/2009TrusteeApplication.

If you have any questions or would like to request an application, please contact Anne Raley (anne@appraisalfoundation.org). 

When requesting information on the applications via e-mail, please use the phrase "2009 AT-LARGE APPLICATION-CONSUMER INTEREST GROUP" in the subject line, and please include your full name, mailing address and phone number.


Board of Trustees Spring Meeting Summary

The Board of Trustees of The Appraisal Foundation held its annual Spring meeting in early May. For a summary of discussions that took place at that meeting, please click the following link:   http://www.appraisalfoundation.org/2009-05_BOT_Summary. 

New Brochure: Why Engage a Professional Appraiser?

The Appraisal Foundation has released a new brochure entitled, Why Engage a Professional Appraiser? Copies of this brochure are available in small quantities upon request to Anne Raley (anne@appraisalfoundation.org) and are downloadable for free on the Foundation’s web site: http://www.appraisalfoundation.org/Professional_Appraiser


USPAP Q&A

The ASB has released its most recent Questions & Answers (Q&A) bulletin. Topics include Q&As on the effective dates of reports and relaying on the reports of others. To download a copy, please click here: http://www.appraisalfoundation.org/USPAPQ&A_May2009.

Upcoming Meetings

Appraiser Qualifications Board (AQB)
Appraisal Standards Board (ASB)
commercial appraiser, commercial appraisal
The ASB will hold its next public meeting in Seattle, Washington on September 11, 2009 at the Hyatt at Olive 8 Hotel. Details on the agenda are forthcoming; however, please contact Carrie Composto (carrie@appraisalfoundation.org) for more details.
Board of Trustees Fall Meeting The Board of Trustees will hold its annual Fall meeting in Scottsdale, Arizona  on October 30-31, 2009 at the Doubletree Paradise Valley Resort. The general session on October 31 will include reports from all Committees and Task Forces as well as appointments for Leadership and members of the ASB and AQB. In addition, reports will be made by Chairs of the ASB, AQB and all Foundation Advisory Councils. For more details, feel free to contact Paula Douglas Seidel (paula@appraisalfoundation.org).

 

The Appraisal Foundation is a non-profit educational organization founded to foster professionalism in appraising through the establishment and promotion of appraisal standards and appraiser qualifications.
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Commercial Appraiser, Commercial Appraisal

Methodology in calculating cash yield http://answers.loopnet.com/Question/Methodology-in-calculating-cash-yield_1922/

I have noticed in many broker's proformas, when calculating cash-on-cash yield, NOI minus debt service, often times "principal reduction" is added back in to the equation. However, this is misleading because principal payments are not "real" cash available to distribute to investors. Why is this method used? Typically when I run a cash flow with an amortizing loan, I focus on annual yield and then overall leveraged IRR, which takes into account whatever balance is left on the note at the time of sale. In Buying Property - Asked by David T. - Jul 6, 2009
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July 07, 2009

commercial appraiser, commercial appraisal

<div id="truliaWidgetVoices" style="background-color:#ffffff;">    <script language="javascript" src="http://synd.trulia.com/voices/my_answers/233788-3-180-qa.js"></script>    <div class="twvFooter">        <div class="twvSeeAll"><a href="http://synd.trulia.com//voices">Real Estate Advice & Opinions</a></div>        <div class="twvGetThis"><a href="http://www.trulia.com/tools/voices/">Get this Widget</a></div>        <div class="twvPoweredBy"><a href="http://www.trulia.com/">                <img src="http://images.trulia.com/images/widgets/voices_small_logo.gif" border="0" align="absbottom" alt="Real Estate" />            </a>        </div>        <div class="twvEnd"></div>    </div></div>

commercial appraiser, commercial appraisal

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commercial appraiser, commercial appraisal

Judge Your Judge


 

We seek your informal feedback about Superior Court bench officers. Please send us your comments, critiques, and suggestions. And yes, even your complaints about particular bench officers..

Your submission remains ANONYMOUS. We have designed a system that will conceal the identity, including the email address, of all senders except those who choose to provide contact information for any follow-up communications.  

LACBA reviews your comments in face to face meetings with the leadership of the LA Superior Court. So your feedback, whether positive or critical of judges, is directly reviewed and used by Court leaders.

We also want to collect your comments or complaints about procedures or practices of particular bench officers (e.g., does not allow counsel to conduct direct voir dire, other SPECIFIC issues, etc.)

Once we confirm the practice or procedure, we will post that information in our Judicial Profile database for that bench officer at http://www.lacba.org.

So, if you have any significant issues or concerns with any sitting bench officers, or significant comments on their procedures or practices, please complete the form.

At LACBA, our goal is simple. We deliver information to empower you, attorneys and judicial officers, to create the most effective and efficient justice system possible. By providing feedback on the performance of judicial officers, you might help them to identify areas where they could improve.

Thank you for your concern and help! 

Danette E. Meyers
President
Los Angeles County Bar Association

http://www.lacba.org/showpage.cfm?pageid=3538

commercial appraiser, commercial appraisal

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The Regional Economic Conditions, RECON, is now available on line with the first quarter 2009 update.

RECON is a compilation of key economic data in graphic format for the United States as a whole and for each state, county and certain metropolitan statistical areas. The table below displays the RECON data offerings by geographical levels (national, state, MSA or county). Available geographies are denoted by an "X". The "Data As Of" column indicates the latest date available for each RECON offering.

Geographic Availability                                   
RECON OFFERINGS
Quarterly updates unless otherwise indicated
U.S. State MSA County Data As Of
Bankruptcy Filings, Personal X X   X 2009Q1
Commodity Prices (Monthly) X       June 2009
Earnings per Employee by Industry (Average annual as of year end)   X     2007
Employment by Industry   X X   2009Q1
Employment Composition (Annual as of year end)   X X   2008
Employment Growth X X X X 2009Q1
Foreclosures Started X X     2009Q1
Housing Permits X X X X 2009Q1
Income Growth X X     2009Q1
Labor Force + Population X X X X 2009Q1
Median Family Income (Estimated Annualized) X X   X 2009Q1
Mortgage Delinquencies X X     2009Q1
Payroll Employment X X X   2009Q1
Per Capita Personal Income (Annual as of year end) X X X X 2007
Personal Income Growth X X     2009Q1
Residential Real Estate X X X X 2009Q1
Unemployment Rate X X X X 2009Q1
Vacancy Rates, Non Residential X   X   2009Q1

Please remember to periodically check Regional Economic Conditions, RECON for second quarter 2009 updates. Updates will be made throughout the third quarter of 2009 as 2009Q2 data becomes available to the RECON system.

 


Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact support@govdelivery.com. Questions regarding the content of this e-mail may be directed to webmaster@fdic.gov.

This service is provided to you at no charge by FDIC Subscriptions.

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New Live Webinar on July 15 at 10:30 a.m. ET

GE

LED Lighting... What you need to know!

OK, you've heard all the buzz about LED lighting, but are you still wondering which are the best applications they can be used in? Still wondering what questions to ask of potential suppliers? Concerned about product testing, reliability and product warranties? Join us for this free webinar and learn the answers to all of these questions as we explore the current state and the exciting future of LED and OLED technology. Derek Publicover will review proper LED testing methods, ideal LED applications and various LED solutions available in the market today.

Register to view on July 15th at 10:30 am NOW!! By registering, you will be sent a reminder email letting you know when to tune in.

Can't watch now? This webinar will be available on-demand after the live recording. Use the same link to view!

This webinar was produced by GE.
commercial appraiser, commercial appraisal

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Loan-Modification Work May Flout Ethics Rules, N.J. Panels Warn

Loan-Modification Work May Flout Ethics Rules, N.J. Panels Warn
New Jersey Law Journal

Attorneys who represent customers of mortgage-modification companies are at risk of losing their law licenses if they split fees with the financiers, two New Jersey Supreme Court committees say. In a joint opinion, the committees state that accepting legal fees from such a company, or dividing with the company a fee paid by a homeowner, constitutes impermissible fee-sharing, and an attorney who engages in such a practice "imperils his or her license to practice law."
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July 06, 2009

Canadian Executive Pleads Guilty to Fraud and Money Laundering

Canadian Executive Pleads Guilty to Fraud and Money Laundering Conspiracies Involving a New Jersey Environmental Protection Agency Superfund Site
Mon, 06 Jul 2009 15:50:14 -0500

 

A former executive of Bennett Environmental Inc. (BEI), a Canadian-based company that treats and disposes of contaminated soil, pleaded guilty to participating in a conspiracy to pay kickbacks and commit fraud at the U.S. Environmental Protection Agency (EPA)-designated Superfund site, Federal Creosote, located in Manville, N.J.

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From: HUD USER News


From: HUD USER News
 
HUD USER has posted a Comprehensive Housing Market
Analysis report for the Spartanburg, South Carolina
Housing Market Area (HMA). Located at the northern border
of the state, the market area analyzed in the subject
report is comprised solely of Spartanburg County.
Economic conditions in the Spartanburg HMA are currently
stable. With an expanding job market (nonfarm employment
up 1.1 percent during the 12 months ending November
2008), the area's population has grown on average 1.2
percent per year since 2000. The three largest job
engines are the manufacturing; trade, transportation, and
utilities; and government sectors.
 
The sales housing market in the HMA is balanced. During
the 12 months ending November 2008, however, total home
sales declined by 20 percent from the previous 12-month
period. During the third quarter of 2008, the median home
sales price fell by 4 percent to $122,000.
 
Compiled by field economists in HUD's Office of Policy  
Development and Research, this report presents economic,
demographic, and housing inventory data that are useful
in foreseeing changes in the demand for new housing. Our
analysis describes the Spartanburg County HMA from 1990
to 2000 and from 2000 through July 2008, also projecting
anticipated market activity during the three-year period
from December 1, 2008 to December 1, 2011.
 
As with previous CHMA reports examining housing market
areas across the nation, this analysis is available
at www.huduser.org/publications/econdev/mkt_analysis.html
and can be downloaded at no cost.
 
--------------------------------------
Please contact us at:
HUD USER
P.O. Box 23268
Washington, DC 20026-3268
1-800-245-2691
1-800-927-7589 (TDD)
202-708-9981 (fax)
--------------------------------------
The HUD USER News eList keeps busy professionals in the
fields of housing and community development informed of
new research and resources available from the U.S.
Department of Housing and Urban Development's Office of
Policy Development and Research (PD&R). Periodically,
publication announcements and other useful information
will be sent via the eList. The HUD USER and Regulatory
Barriers Clearinghouses value your privacy; we do not
share our mailing lists with other groups, and you can
unsubscribe at any time.
 
You can search the eList archives
at http://listserv.huduser.org/.
 
Why not share HUD USER's resources and information with
a colleague? Forward this email to associates who may be
interested in the housing research and data sets we have
to offer. Thanks!
 
To keep up with the latest HUD research and related
resources, you can also sign up for a free subscription
to our ResearchWorks newsletter (in either electronic or
print-based formats) by visiting http://www.huduser.org/emaillists/subscr.html.
 
--------------------------------------
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July 03, 2009

A new law passed by Congress and signed last week by President Obama provides protections for tenants

Published on Tuesday, June 9, 2009 10:17 PM PDT

A new law passed by Congress and signed last week by President Obama provides protections for tenants whose landlords fall into foreclosure. Under the Helping Families Save Their Homes Act, tenants have the right to stay in their homes after foreclosure for 90 days or through the term of their lease. The bill also provides similar protections to housing voucher holders.  The protections go into effect immediately and expire at the end of 2012.

At least one third of the units going through foreclosure in California are rentals.  Under current law, most California tenants are entitled to 60-days notice of eviction after foreclosure.  The new federal law increases this to 90 days.

In addition, California law provides that leases are extinguished by foreclosure, with limited exceptions.  Many tenants enter into one year leases, only to find a few weeks or months later that the property is heading for foreclosure and that their leases will be extinguished.  The new federal law provides that the lease survives the foreclosure, except that the lease can be prematurely terminated and the tenant given 90-day notice where a purchaser seeks to occupy the premises.  Some California cities have local laws prohibiting foreclosure evictions.  The new federal protections do not preempt these laws which remain in full force. 

“Congress and President Obama have shown real leadership here. Tenants are innocent victims of the foreclosure crisis, and it is about time they get some relief,” noted Dean Preston, Executive Director of Tenants Together. “This bill will provide tenants 90-days notice of eviction, require banks to honor leases, and protect Section 8 tenants after foreclosure. We look forward to the day when banks stop evicting innocent tenants after foreclosure, but until that day comes, this federal legislation will provide much-needed time for tenants across the country to find new housing and relocate.  Senator John Kerry (D-MA), Representatives Keith Ellison (D-MN), Carolyn McCarthy (D-NY), Michael Capuano (D-MA), and Barney Frank (D-MA), deserve special praise for their efforts on this bill, as does the National Low Income Housing Coalition, a nonprofit organization that has been advocating for these tenant protections for over a year.”

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July 02, 2009

Ready 'n' Rarin' to Go for Everyone

You can now get the entire May edition of the award-winning Site Selection online by simply using our new reader. By using the "Navigate" menu in the upper left-hand corner, resourceful readers can also:

 

  • qualify to receive a free subscription.
  • request additional digital delivery of Site Selection.
  • renew your subscription to the magazine.

 

Read it all now! Ready 'n' Rarin' to Go for Everyone

You can now get the entire May edition of the award-winning Site Selection online by simply using our new reader. By using the "Navigate" menu in the upper left-hand corner, resourceful readers can also:
  • qualify to receive a free subscription.
  • request additional digital delivery of Site Selection.
  • renew your subscription to the magazine.
Read it all now!
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TABLE OF CONTENTS:

1. Advertise Directly on Google through LandAndFarm.com !
2. Restoring Forests by Killing Trees
3. Forest Discovered on Google Earth
4. Big Land Deals Around the World: New Zealand, Congo, Canada, Sumatra, Japan
5. Recent Properties


 Advertise Directly on Google through LandAndFarm.com

NEW!  We love being able to make life easier for our customers and get them the best exposure on the web for their listings.  Through a partnership with Google, your listing can be advertised directly on Google through Google's Adwords(tm) system.

To take advantage of this offer, simply check the appropriate box on the listing creation form when you create your listing on LandAndFarm.com. Choose a monthly budget and we will create the Google Adwords ad for you based on the information in your listing. We'll put the advertisement on Google and we'll make sure you get statistics to show how many times your ad has been shown on Google and the traffic generated by Google. You don't need to do anything else.

We love this new product and we think you! will to o.



 Restoring Forests by Killing Trees

Timberland and forestland owners should contact a forestry professional to see if forest management can help improve their land.

One method of forest management, girdling trees, can save ecosystems and restore forests, say Florida Park Service biologists.  Girdling is a means of killing a tree by cutting a strip of bark around its circumference.  Girdling is done with machetes or chain saws.  It works by removing the layer of water and nutrients found in the tree's bark, thereby slowly and effectively killing the tree.

Some people girdle trees to prevent non-native tree species from moving into an area.  However, removing a tree's dense shade cover can also open up a new habitat, encouraging plant life to grow back into an area.  This can improve the forest's ecosystem and can help to restore timberland and forestland.

There are, however, some downsides to girdling trees.  Some protest that the process is ugly and destroys the natural beauty of an area, and because girdling is a somewhat slow process, you will have to look at the girdled trees for some time.  Girdling also removes shade cover, which can be a welcome relief in the warmer seasons.



 Forest Discovered on Google Earth !

Take a look at your land on Google Earth; you never know what you might find.

Looking at land on Google Earth (see link below to download Google Earth) was exactly what Dr. Julian Bayliss, head of the British-funded cross-border conservation project, did.  While comparing satellite images of mountains, he came across a surprise: a patch of rainforest in Mount Mabu, Mozambique that had not been officially documented.  Dr. Bayliss and a group of scientists rushed to explore the uncharted forest.  They soon realized that the "green patch" they had discovered on Google Earth was the biggest rainforest in Southern Africa.

Northern Mozambique's Mount Mabu, hailed as "a lost Eden", shows no signs of logging or burning, both of which are commonly done to forests in the area.  The forest's pristine condition, along with what scientists suspect are many new species, makes it a perfect candidate for protection.  Said scientist Bill Ranch, "We can't protect every little forest, so we have to really look for forests that have high surviving diversity and use those as our protected areas."

The BBC has a full report on this story.

Download Google Earth
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The Office of the Comptroller of the Currency (OCC)’s Financial Literacy

The Office of the Comptroller of the Currency (OCC)’s Financial Literacy Update is a bimonthly e-newsletter containing information about upcoming financial literacy events, new initiatives of the OCC and other government agencies and organizations, and other related resources. 

Financial Literacy Update provides brief descriptions and Web links for upcoming events in chronological order. We list new initiatives and resources (with Web links) in alphabetical order. We welcome your feedback on the Financial Literacy Update. Please e-mail us at  communityaffairs@occ.treas.gov.

Upcoming EventsNew InitiativesNew Resources

Upcoming Events
July 14, 2009 (St. Louis, Mo.)
The Federal Reserve Bank of St. Louis offers “Lessons in Children Literature,” a professional development workshop for 1st-5th grade educators. The course covers curriculum ideas designed to help students gain personal finance and economic knowledge while they read.
July 16, 2009 (St. Louis, Mo.)
The Federal Reserve Bank of St. Louis offers “Personal Finance: Your Students’ First Steps,” a professional development workshop for 9th-12th grade educators. The course covers two new curricula designed to help students meet their first personal finance challenges. It's Your Paycheck! introduces students to wages and taxes while also preparing them for the tempting world of credit cards, payday loans, rent-to-own contracts and check cashing schemes. Cards, Cars and Currency focuses on that first important purchase—a car—and also helps students learn more about the costs and benefits of using credit cards for smaller purchases that can add up to big problems.
July 20-24, 2009 (Boston, Mass.)
Junior Achievement Worldwide holds its Worldwide Leadership Conference with the theme,“ Connecting to Build a Better World.”
July 20-24, 2009 (Philadelphia, Pa.)
The Federal Reserve Bank of Philadelphia offers “Making Sense of Money and Banking,” a five-day course for teachers that covers money, banking, and the Federal Reserve System. The course is taught by Federal Reserve economists, economic education specialists, and staff from state centers on economic education. Emphasis is placed on active- and collaborative-learning teaching methods and curricula for teaching money and banking in the grades K-12.
July 22, 2009 (Canyon, Texas)
The Federal Reserve Bank of Dallas, Texas Council on Economic Education, West Texas Center for Economic Education, College of Business, and West Texas A&M University offer a one-day teacher workshop for secondary educators called “Get Your Kicks on Route 66.” The workshop examines the West Texas economy and how it relates to what is going on nationally as well as globally. Also addressed are the major economic drivers that make this region work, especially as they relate to the natural resources of wind, water, and energy.
August 3-6, 2009 (Tempe, Ariz.)
The 2009 National Youth Involvement Board Annual Conference provides insight and resources that can be used to understand young consumers and teach them good money management skills.
August 4, 2009 (Philadelphia, Pa.)
The Federal Reserve Bank of Philadelphia offers a one-day professional development program that introduces middle school teachers to methods for teaching personal finance topics, such as personal decision making, saving, investing, budgeting, and the wise use of credit.
August 19, 2009 (Dallas, Texas)
The Texas Department of Banking provides hands-on training on three financial education curricula: the Federal Reserve Bank of Dallas’s “Building Wealth,” the Federal Deposit Insurance Corporation’s (FDIC) “Money Smart Program,” and JA Worldwide’s “Junior Achievement.”
August 31-September 1, 2009 (San Antonio, Texas)
The National Community Tax Coalition, a project of the Center for Economic Progress, holds its 2009 Annual Conference. Themed “Realizing the Dream: Promoting Financial Opportunity in All Communities,” the two-day conference provides opportunities for training, learning, networking, and shaping the direction of community-based tax preparation, financial services, leadership development, and advocacy.
September 11, 2009 (Chicago, Ill.)
The Federal Reserve Bank of Chicago holds this conference to bring people together with researchers and representatives of partner organizations to discuss strategies for designing successful programs and partnerships in financial literacy and financial education. The conference provides research that evaluates the effectiveness of financial education and counseling and opportunities for participants to learn from partners about what works and what could be improved.
September 14, 2009 (Washington, D.C.)
The National Foundation for Credit Counseling holds its 2009 Annual Leaders Conference in Washington, D.C. The national agenda focuses on financially responsible behavior and helping the foundation’s members deliver quality financial education and counseling services.
October 7-10, 2009 (Washington, D.C.)
The Council for Economic Education, National Association of Economic Educators, and Global Association of Teachers of Economics holds its 2009 annual conference. The conference focuses on grades K-12 economic, personal finance, and entrepreneurship education.
October 21-23, 2009 (Philadelphia, Pa.)
The Institute for Financial Literacy hosts the 2009 Annual Conference on Financial Education. The conference provides professional development opportunities for people working in the fields of financial literacy and education.
November 4, 2009 (Lubbock, Texas)
The Texas Department of Banking provides hands-on training on three financial education curricula: the Federal Reserve Bank of Dallas’s “Building Wealth,” the FDIC’s “Money Smart Program,” and JA Worldwide’s “Junior Achievement.”
November 6-8, 2009 (Washington, D.C.)
The Jump$tart Coalition for Personal Financial Literacy presents the first nationwide conference devoted entirely to personal finance education in grades K-12.
New Initiatives
The Bank On Cities Campaign is a technical assistance project that helps municipal officials build a comprehensive asset-building agenda for residents. Project participants learn how to access financial services, accumulate and protect savings or other financial assets, and avoid unmanageable debt and bad credit, which are the keys to both family financial stability and the broader economic vitality of their cities.
Mayor Bloomberg’s Five Borough Economic Opportunity Plan has provided New Yorkers with access to free financial counseling at the city’s Financial Empowerment Centers in Brooklyn, Manhattan, and Queens in addition to the Bronx. Services are provided by professional counselors in person or by phone in English and Spanish. Opening additional Financial Empowerment Centers is one of Mayor Bloomberg’s 18 initiatives to help New Yorkers face current economic challenges.
Money Smart Week Wisconsin October 10 – 17, 2009, is a public awareness initiative that aims to build financial knowledge so people can deal with their own money more quickly, confidently, and shrewdly. The workshops, seminars, programs, events, and other activities help people and their families, students, homeowners, businesspersons, employees, and other community members expand their opportunities through improved financial literacy.
The National Academy of Public Administration has launched a student-focused, public awareness campaign designed to demonstrate the importance of financial responsibility and to inspire students to make their voices heard in the ongoing fiscal policy debate. “Budgetball” is an innovative new sport that combines fiscal strategy and physical play. The game takes students out of the classroom and on to the field for competitive play that highlights the relationships among debt, savings, interest, and taxes.
The North American Securities Administrators Association provides information and tools on financial services and investments, including tips for avoiding investment fraud and where to go for help.
Tennessee Society of Certified Public Accountants has a variety of financial literacy programs targeting high school and college students. Its “High School Liaison Program” provides each high school in Tennessee with a volunteer certified public accountant to speak to students about career options or personal finance. The organization also offers a personal finance session to high school juniors and seniors who attend its summer Accounting Academy, a four-day program designed to expose students to career opportunities in the accounting profession.
The National Endowment for Financial Education has launched a National Financial Literacy Campaign that encourages Americans to start achieving their financial goals by accessing practical information on the Smart About Money Web site.
"United We Serve" is a nationwide service initiative, announced by President Obama, that will help meet growing social needs resulting from the economic downturn. The initiative aims to both expand the impact of existing organizations by engaging new volunteers in their work and encourage volunteers to develop their own "do-it-yourself" projects. United We Serve is an initial 81 days of service, through September 11, 2009, but hopes to grow into a sustained, collaborative and focused effort to promote service as a way of life for all Americans.
The Virginia CASH Campaign (Creating Assets, Savings, and Hope) helps low- and moderate-income workers move toward greater self-sufficiency (a) by receiving the federal Earned Income Tax Credit that can supplement earnings and (b) through financial literacy and other asset-building activities. The campaign promotes the Earned Income Tax Credit program through education, outreach, and awareness; provides free tax preparation to avoid the high cost of professional preparers and to avoid refund anticipation loans; and promotes financial opportunities to the unbanked.
New Resources
The Association of Credit and Collection Professionals International’s Education Foundation provides a free and confidential resource for helping consumers find solutions to credit and debt issues.
MetLife released a new publication, The Benefits Edge: Honing the Competitive Value of Employee Benefits, written by industry expert Dr. Ron Leopold. Grounded in MetLife research, The Benefits Edge contains pragmatic principles and ideas designed to help employers make more strategic investments in employee benefits with an eye toward optimizing return on benefits investment and delivering greater competitive advantages.
CardRatings.com offers free educational materials and resources in addition to free credit card ratings and reviews. The U.S. Citizens for Fair Credit Card Terms maintains this Web site.
The Cooperative Extension System’s Financial Security for All Community of Practice hosts a series of informational chat sessions through the University of the District of Columbia. Visitors to the site can ask questions and get answers from extension personal finance experts. Also available on the site is a locator for local extension offices and institutions.
The National Foundation for Credit Counseling has launched Debt Advice, an interactive Web site that gives consumers access to numerous financial education tools and helps them find a certified credit counselor closest to them.
The Federal Reserve has created a Credit Card Repayment Calculator. Based on the information the user provides, the calculator will give an estimate of how long it will take to pay off the credit card balance. A second calculation helps the user develop a plan for paying off the balance sooner.
The FDIC has released the Money Smart Podcast Network, the portable audio (MP3) version of the award-winning Money Smart financial education. The new version of Money Smart is suitable for use with all MP3 players, enabling consumers of all ages to learn to make informed and prudent financial decisions while “on the go.”
The FDIC has issued a variety of tips to help consumers stay on guard financially in the current economy, in areas ranging from foreclosure rescue and loan modification scams to deceptive offers of FDIC-insured certificates of deposit. The FDIC published these tips in the spring 2009 issue of FDIC Consumer News, the agency’s quarterly newsletter for consumers, which is available on the Web site.
In its winter 2008/2009 issue of FDIC Consumer News, the FDIC issued tips to help consumers spend less, save more, protect against fraud, and borrow wisely at any time but especially during a difficult economy.
The Financial Literacy of Young American Adults, an analysis of the Jump$tart Coalition’s 2008 biennial survey, is available in PDF on the Jump$tart Web site. The survey, which launched in 1997 and has been conducted every other year since 2000, focuses on high school seniors but included college students for the first time in 2008. The results of these surveys (and comparisons with earlier surveys) are included in the book. Also available on this site is Making the Case for Financial Literacy, 2009, a collection of personal finance statistics that Jump$tart compiled from other sources.
Financial Literacy Online is a product of National Student Loan Program, a nonprofit student loan guaranty agency dedicated to financial literacy, based on the belief that education helps all consumers manage debt and other financial matters. Financial Literacy Online is a comprehensive and convenient online learning center that teaches students the basics of personal money management. Courses are for students planning for college, enrolled in college, planning to graduate from college, or recently graduated from college. Anyone interested in money management—including parents—may take the courses.
Investor Education Fund, in partnership with the Investment Industry Regulatory Organization of Canada, sponsors “Funny Money for High Schools Assembly Program,” an entertaining show that takes students on a financial literacy tour through the basics of balancing a checkbook, reconciling a debit card statement, learning credit card fundamentals and more.
Junior Achievement and the Allstate Foundation have created a new series of free, downloadable teaching tools to help parents talk to their children about smart money management. Lessons cover budgeting, the importance of saving, understanding the cost of credit and how to use it, and more.
The National Theatre for Children has developed a communications strategy that combines live theater and multiplatform educational materials to communicate complex messages to hard-to-reach audiences. Mad About Money is a four-part program that teaches children about forming savings habits, evaluating risks, and the difference between a debit card and a credit card.
My Money Management is a unique industrywide effort to provide consumers with comprehensive financial education resources to help guide their personal finance decision-making process. This Web site provides consumers with tools and resources from a variety of sources, including financial service companies, advocacy organizations, and personal finance experts. My Money Management is an initiative of the Financial Services Roundtable.
Smarty Pig is a free, online savings account for people who want to save for specific goals. The account also is FDIC-insured. A person types in the dollar amount they wish to save and the time frame in which they would like to reach their goal. The Web site technology suggests a monthly deposit amount to the account holder to reach that goal.
The U.S. Social Security Administration offers a wide variety of new and important publications and other resources and tools for the public about retirement, benefits, and support for family members in the event of disabilities or death.
Wells Fargo recently launched a free virtual world, “Stagecoach Island,” an entertaining and interactive companion site to Hands on Banking, its free financial education program. Teens can explore the island and its hidden secrets, connect with friends and make new ones, and learn smart money management. Educators can use the “Stagecoach Island” virtual world in the West Texas Center for Economic Education classroom to teach important lessons in budgeting, saving, managing credit, buying a home, and getting a job. Participants earn virtual money by visiting the Learning Lounge, and answering questions about money management. They can also obtain virtual jobs, credit cards, and home loans giving players the opportunity to learn, earn, build and, play in a virtual world.
The American Bankers Association has launched “Teach Children To Save,” a Web site designed to make classroom lessons for children available to everyone. The site offers tips for young people and their parents on how to establish a budget, start a savings account, and make regular deposits.
The National Endowment for Financial Education has developed a new Web site dedicated to help people optimize their retirement paycheck by making wise decisions.

 

 

 

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­HelpWithMyBank.gov - The OCC’s Web site that provides answers to more than 300 commonly asked banking questions. While targeted at national bank customers, the site answers many questions common to all banking consumers and provides useful information about contacting regulators of state banks, thrifts, and other financial institutions. A link from HOPE NOW to HelpWithMyBank.gov has been established.
MyMoney.gov - The U.S. government's Web site dedicated to teaching all Americans the basics of financial education. The site houses important information from 20 federal agencies on such topics as buying a home, foreclosure prevention, deposit insurance, privacy, fraud, scams, balancing a checkbook, and investing in a 401(k).
Subscribe: Sign up for the OCC’s “Financial Literacy Updates” by visiting http://www.occ.gov/canewslistserv.htm.
Have a financial literacy event coming up worth noting? Rolling out a new financial literacy initiative? Developing a new tool or product? Have general feedback? E-mail us at communityaffairs@occ.treas.gov.
commercial appraiser, appraisal
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REITs Move Off Bottom, Can Commercial Real Estate Be Far Behind?

REITs Move Off Bottom, Can Commercial Real Estate Be Far Behind?

By Mark Heschmeyer

Data from the National Association of Real Estate Investment Trusts (NAREIT) clearly show that investors have smiled on REITs so far this year. There were 45 secondary equity offerings in the REIT industry in 2009 through May 31, which raised $14.2 billion. In May alone, 18 secondary equity offerings raised $5.3 billion. By comparison, there were 76 secondary offerings in all of 2008 raising about the same amount. This was greeted as very good news indeed by commercial real...  
» Click here for full story
commercial appraiser
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TRAINING SERIES ON UNDERWRITING COMMERCIAL FINANCE, PART 2

TRAINING SERIES ON UNDERWRITING COMMERCIAL FINANCE, PART 2

Charles Pixley
RAMA ENTERPRISES, Inc.
Real asset management associates
515 Madison Ave., 5W, New York, NY 10022
charlespixley@rocketmail.com
Skype: toanangel
585 217 2191


Volume 6 Issue 2
TRAINING SERIES ON UNDERWRITING
COMMERCIAL FINANCE, PART 2

THE COMPONENTS OF AN EXECUTIVE SUMMARY

William Shakespeare wrote: “Brevity is the soul of wit.” If you want someone immersed in this industry to pay attention it most likely will not happen if you submit a series of files that take up allot of disc space and would take hours to read and still not convey the basics of the project.

To spare everyone’s time, get you the fastest answer and have the greatest chance of garnering interest, the most effective means of getting your loan or finance request read understood, and approved by an underwriter for in depth review is the Executive Summary. The following is a sample; obviously you have to tailor the summary to the subject type:

TYPE OF FINANCE REQUESTED
1. Date:
2. BORROWER’S NAME whether personal Corporate or LLC:
3. SUBJECT ADDRESS:
4. PURPOSE OF THE LOAN:
5. TYPE OF PROJECT, OR BUSINESS:
6. DESCRIPTION OF THE PROPERTY OR BUSINESS
7. PURCHASE PRICE:
8. DATE OF PURCHASE:
9. BORROWER CASH INVESTED TO DATE:
10. EQUITY IN DEAL:
11. BREAKDOWN OF ALL IN COSTS:
12. USE OF FUNDS:
13. AS IS VALUE:
14. QUICK SALE VALUE:
15. AS COMPLETE VALUE BASED ON INCOME:
16. ACUTAL OR PROJECTED GROSS INCOME:
17. NET OPERATIONG INCOME Projected or Actual:
18. CLIENT NET WORTH:
19. CLIENT FICO:
20. EXIT STRATEGY:
21. Brief summary of salient facts:

RATIO USED TO DETERMINE VALUE
BASICS OF DETERMINING THE DSCR

Using a copy of the most recent tax returns for the business, or the specific properties, if there are more than one property incomes reported. Take the Adjusted Gross Income. AGI, and add back: Depreciation, Amortization, Interest Expense and specific non-reoccurring charges used to improve, or maintain the business, or property, (new equipment, new roof, bathroom remodeling, etc.

THIS IS YOUR Net Operating Income, N.O.I.

Probably one of if not the most important valuation ratio is the Debt Service Coverage Ratio, DSCR.

To know if your client, or loan request has a chance of flying, if you know a property or business

NET OPERATING INCOME, N.O.I., an underwriter and you can determine value very accurately without referring to an appraisal.
Debt Service Coverage Ratio

In underwriting a business, or commercial property Cash flow analysis is referred to as the Debt Coverage Ratio and it means everything to an underwriter to determine value. For both owner occupied and investment properties, underwriters normally want to see ratio's above a ratio of a minimum of 1.20 to 1.

In other words, for every $1 of mortgage debt the property or business has to have $1.20 of net income to meet the mortgage payments. Obviously the greater the risk or shorter the seasoning or occupancy rate, or property types such as hotels or car washes will be required to have higher ration preferably a DSCR above 1.4.

As a quick method of qualifying a loan request, assume a Capitalization Rate, CAP RATE OF 10% and multiply the N.O.I. X 10 and you will have a general idea of the actual value. However, if you know the CAP RATE, for the area, is 7% you divide the N.O.I., by 0.07, and it will give you a very accurate idea of what the property will appraise for and whether the Loan To Value, LTV, requirements are within the guidelines to have a chance for approval.

A low DSCR, high vacancy rate, speculative transaction, poor credit history, poor business track record, lack of evidence to repay, high LTV, start-up business and so forth make your loan request “Less than Standard” and then MAY, if at all, only qualify for a Hard Money Loan, with much higher interest rates and points and substantially lower LTV.

commercial appraiser, commercial appraisal

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TRAINING SERIES ON UNDERWRITING COMMERCIAL FINANCE

TRAINING SERIES ON UNDERWRITING COMMERCIAL FINANCE
Part 1


Charles Pixley
RAMA ENTERPRISES, Inc.
Real Asset Management Associates
515 Madison Ave., 5W, New York, NY 10022
charlespixley@rocketmail.com
Skype: toanangel
585 217 2191


Volume 1 Issue 1
TRAINING SERIES ON UNDERWRITING COMMERCIAL FINANCE

INTRODUCTION

I am honored to be able to offer you this course which will be emailed to you over the next few weeks. Please feel free to ask questions, as I am sure if you are unclear others may have the same question and together we will have a better learning experience.

Will try to reduce the subject matter to the least amount possible and convey the greatest amount of understanding.

Ideally this information will help you garner a more well qualified base of clients as they learn of your professional ability and ultimately the most important point of all, achieve a win for your client and then a win for you when it the deal closes.

The basic definition of commercial lending is to provide finance to a business, or property, whose ultimate function is the creation of profit.

The purpose of this newsletter is to provide you with specialized information on underwriting commercial loans, which is hard to find and its various types, under the heading of capital finance, so you may address the specific needs of a targeted audience.

This is designed to guide you through the fundamentals of audience as concerns understanding COMMERCIAL LOANS & UNDERWRITING and how “INVESTORS,” a.k.a lenders evaluate scenarios and qualify the proposal and prospect for potential funding.

GETTING STARTED

This business takes guts, drive and intense persistence, and the ability to survive financially, the period of time required to understand, build a book of business and know how to underwrite the various proposals and where to go to find the funds.

In our current market non-traditional sources of funds have become the go-to or lender of first choice, so the opportunity to review a myriad of deals is immense.

Some borrowers are highly sophisticated and know far more than the average loan officer, however, for the most part, simply don’t know what they are doing and don’t understand the process.

These days, almost all business borrowers have been, burned, turned out, or turned down, or simply they are ill qualified. Most unsophisticated clients embellish values, and don’t tell the whole truth and nothing but the truth, and that makes your job as an underwriter more of a Sherlock Holmes.

Many borrowers try to manipulate the money into what they think they want or should get, or they flat out are liars, or worse yet they are frauds. But, as you know money is like water, it seeks its own level and it KNOWS intrinsically what to do and what the rates are.

Unless you have the aforementioned I would not recommend entering this business, full time, at all. Although one never stops learning, nor finding new creative ways to structure deals

Realistically, the learning curve, if you were to do nothing but commercial loans, all day everyday at a modest rate of about 50 calls and interviews per day, can be about one year.

Once you have a working understanding, have been beaten up by borrowers and lenders there is a clarity focus that comes and all the pieces come together, THEN it becomes much easier.

Perhaps, the most important element of all is that, your clients can hear the experience level in your voice. Therefore, as you become more confident, you will inspire confidence in your clients and they will be more receptive to giving you their business.

In the next issue we will cover THREE IMPORTANT RATIOS and how these values are determined and the pitfalls from an commercial underwriters perspective.

commercial appraiser-appraisal

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July 01, 2009

HUD Awards Over $1B in Recovery Act Funds to Jump Start Affordable

HUD Awards Over $1B in Recovery Act Funds to Jump Start Affordable Housing Construction
Published: July 01, 2009

By Anuradha Kher, Online News Editor

Washington, D.C.--The U.S. Department of Housing and Urban Development (HUD) is approving plans submitted by state housing finance agencies for $1,035,322,485 to jump start affordable housing programs in states throughout the country that are currently stalled due to the economic recession. Funded through the American Recovery and Reinvestment Act of 2009 (Recovery Act), HUD's new Tax Credit Assistance Program (TCAP) will allow 26 state housing finance agencies to resume funding of affordable rental housing projects across the nation while stimulating employment in the hard-hit construction trades.

“The purpose of the American Recovery and Reinvestment Act is to jumpstart the nation's ailing economy, with a primary focus on creating and saving jobs in the near term," says HUD Secretary Shaun Donovan. "The funding being announced is an important step in achieving the goal of putting the American people back to work while providing quality, affordable housing options for low-income families at a time when those options are needed more than ever." 

The current economic and financial crises present significant challenges for the construction industry, particularly residential construction. One of the by-products of this crisis has been the freezing of investments in the low-income housing tax credit (LIHTC) market. The tax credits create an incentive for investors to provide capital to developers to build multifamily rental housing for moderate- and low-income families across the nation. Since the contraction of the credit market, and as traditional investors remain on the sidelines, the value of tax credits has plummeted. Consequently, as many as 1,000 projects (featuring nearly 150,000 units of housing) are on hold across the country.  

In response, the Recovery Act provides $2.25 billion for TCAP, a grant program to provide capital investments in these stalled LIHTC developments. HUD is awarding these TCAP grants by formula to 52 state housing credit agencies (all 50 states plus the District of Columbia and the Commonwealth of Puerto Rico) to complete construction of qualified housing projects that will ultimately provide affordable housing to an estimated 35,000 households nationwide. Since a major purpose of this program is job creation, the Recovery Act establishes ambitious deadlines for expenditure of grant funds and requires state housing credit agencies to give priority to projects that can begin immediately and be completed by February 16, 2012.

Under this first round of TCAP funds, 26 state housing finance agencies received awards today. The remaining 26 grants are to follow in the coming weeks. (commercial appraiser/appraisal)

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