I encourage my Investor clients to treat their investing as a business. Formal business structures help us to stay on track with our current and long-term goals.
As part of my routine, I keep accurate financial records for each of my separate investing companies and for my overall personal finances. Quickenis a simple and reliable tool to record expenses, income, and to generate reports as needed. I like the way it adds a layer of discipline and error checking to everything I do.

It’s also important to maintain an accurate and current Personal Financial Statement (PFS). I update mine at least monthly. There are many forms for this but SBA form 413 will work for many Investors. As your portfolio grows you will probably need a more versatile format.

As an Investor and as a Realtor I know the value of information and communication. I am posting this from an iPhone and haven’t needed my office computer all day.
It’s great for me to be freed from the office.

I will be in Tulsa, Oklahoma from Thursday 7/17/08 through Friday 7/25/08.
I go to Tulsa often to check on my properties, my Clients properties, and to look for more great deals.
If you would like to meet me there for an Investor’s tour please contact me.

Due to my tight schedule this month I will not be hosting the usual Rich Dad Cash Flow game. I expect to resume next month on August 30th (check here for details)

Remember that I do free investment analysis for any deal my Clients or Friends are considering. It’s critial to have a neutral set of eyes on a deal before you commit to it. If you do not understand a deal well enough to explain it to someone else, then you need to get more information before you put any money into it.

Eric Haggin
925 336-6462
7/11/2008

Buyers beware…This Buyer’s market is getting a bit unfriendly to Buyers.

I am working with Buyers around the East Bay area from Antioch, to El Cerrito,to Dublin, and out to Livermore. In all of those areas the lower price-point homes are selling with multiple offers in a short time.

I saw a home in last week in Antioch which had 31 offers!

It’s no longer reasonable to make low offers on most REOs (bank owned properties). The banks are finally pricing correctly and many of the new listings are selling quick.
If you want to buy one of these great deals you need to make a solid offer and be ready to take action quickly if you see a good deal.

Here is a chart I made showing the ratio of Active to Pending listings in Dublin for the past 3 years.

Compare June of each year (vertical line)

We have lower actives (light blue) - fewer homes on the market

We have strong pendings (dark blue) - more homes being sold

The ratio (black line) is lower now than in 2006 or 2006. This indicates a tighter market and is a componant in determining overall strength.

But wait…this is happening because prices have dropped 25% from a year ago. None of the information above points to price increases, only active sales of the available inventory. It should help us dig through the backlogged inventory of homes and work towards a healthier market in the East Bay area. Remember that a “healthier” market could have lower or higher prices. 

Health is a matter of balance, stability,growth, and rational behavior.

I have a simple question for potential Buyers:  What are you waiting for?

When you are ready to buy, call me at 925 336-6462

Eric Haggin

Eric@EastBayPlus.com

There is a lot of pain happening to Real Estate Investors now.
Some is self-inflicted; some has come from outside forces.
Here is how I see it.

Key Points
Speculators are not Investors
Get into debt to become wealthy
This is a great time to be a rational Investor

The next few years will destroy many who think of themselves as Real Estate Investors. They will be revealed as the speculators they are. We have already seen large swaths of the country crushed by the weight of abandoned and foreclosed properties. Homeowners will usually struggle to avoid foreclosures; unfortunately some speculators simply exit when the market forces no longer give them easy profits. With little or no equity the speculators have little to lose if their risky bets don’t pay off. This hurts everyone.

The Good News
The next few years will be a magnificent time to be a rational Real Estate Investor. I am aggressively positioning myself and my Clients to benefit from the “millionaire maker” part of the real estate market cycle.
We currently enjoy ridiculously low interest rates. This will not last.
The strategy I teach and follow is to use this opportunity to get into debt as much as possible. Anyone who locks in these low rates now will look like a genius 5 years from now when rates are oppressively high.
Re-finance adjustable rates into fixed immediately and/or buy more properties with maximum debt that’s fixed for at least 20 years.
The second threat (fantastic opportunity) is inflation. The Federal Reserve has clearly demonstrated that they will use inflation to fight the current weak economy. In the 1970s, inflation devoured the life savings of millions of Americans. Careful savers will hopelessly watch as their purchasing power is dissolved away. I can’t change that, but I can protect my family, friends, and anyone else who cares to listen to me.

Get into Debt to Become Wealthy
My leveraged properties are all cash-flow positive and are appreciating, even as many other markets are depreciating. Because all of my loans are fixed rates, inflation will be my friend; I welcome it. As inflation hits, both property values and rents tend to increase. My cash-flows and my property values will almost certainly be pushed up.
I advise Clients to buy investment deals with as much leverage (debt) as possible. This magnifies appreciation gains because they gain on the full value of the property not just on the amount they put in.
Another advantage of high debt is that the loans are paid back with over time with increasingly devalued currency. Your payment schedule is calculated based on the value of the currency on the day you get the loan. In inflationary times, Lenders are losers, Borrowers are winners.
Good debt is an asset!

Rational Investing
My focus with Clients is always on rational investing as opposed to speculating. The distinction is critical.
Rational investors are focused on careful analysis, proper planning, and honest projections.
We are in it for the long run, not a quick gain.

What do you think? I welcome your responses.

Eric Haggin
5/18/2008

It’s time for another one of my classes that I teach to local Realtors.

“Real Estate Investing for Realtors”

You are invited to attend.
My goal is to help other Realtors serve their Investor clients. It’s been my experience that most Realtors have only very superficial knowledge about Real Estate Investing. I am changing that.
In this class we talk about:

• Market cycles
• Needs evaluation for the Client
• Market analysis (Cap rates, demographics,etc.)
• Property analysis (valuation, due diligence,etc.)
• Questions/Answers/Conversation

This is a FREE class open to any Realtor, and any of my Clients/Friends/Invitees (I present it so I make the rules)

You do not need to be a Realtor, if you are interested in rational real estate investing you are invited to attend.

It’s best to email or call to RSVP but it’s ok to just show-up.

When

• Monday May 19th - 11am~1pm (it’s ok to leave early if necessary)

Where

• Danville Financial Center
• 500 La Gonda Way #102, Danville

I have nothing to sell and the class is free.

Eric Haggin

925 336-6462

IFR@EastBayPlus.com

.

I have returned from my real estate trip to Tulsa, Oklahoma.

They sure have a different mood from Californians these days!

There is an active campaign by the Realtors association to build a positive atmosphere to balance the negative national press. Near many Realtor’s lawn signs, and in other places the slogan “Good Thing You’re in Tulsa” proudly anounces that home prices are up.

I’m not here to promote Tulsa real estate. I do hope that people who live where investment real estate is over-priced will consider investing in Middle America where the numbers make sense.

Yes, even after our recent price drops, investment real estate is still way over priced relative to rents in California and other formerly “Hot” markets.

“Live where you want to live, invest where the numbers make sense”

Eric Haggin

925 336-6462

I am in Tulsa, Oklahoma this week (from 4/8/2008 ) to check on my current properties, and to investigate possible future deals.

Those of us who have experienced the California real estate roller coaster can find a very different environment here in Tulsa. While the hot California markets crashed corrected, Tulsa has continued a healthy growth pattern.

I originally bought properties in Tulsa to simply preserve my assets in the event of a decline in California. It has turned out to be much more. We have had significant appreciation and positive cash flow.

It’s not just location location location. In almost every market there are great deals,good deals,and bad deals. Careful research, rational analysis, and hard work are rewarded with superior returns and reduced risk.

I’m not suggesting that everyone buys in Tulsa (although my Clients and Friends have done well in Tulsa with me). My usual advice is for each Client to find a part of the Country where they can become a local expert as long as it’s a rationally priced market.

If you are looking for an inexpensive office building to lease in Tulsa please see my post here < http://eastbayplus.wordpress.com/2008/03/19/24000-sq-ft-warehouse-for-lease-tulsa-oklahoma/ >

Remember: “Live where you want to live, invest where the numbers make sense”

Eric Haggin

925 336-6462

Investing@EastBayPlus.com

My listing at 7342 Kolb Pl in Dublin has SOLD in less than 3 weeks!

It’s proof that in any part of the market cycle homes will sell if they are:

• Priced correctly.
• Properly prepared.
• Aggressively marketed.
• Exposed to every possible buyer

If you want to get yours sold, give me a call.

Eric Haggin - Keller Williams Realty

925 336-6462

Eric@EastBayPlus.com

“You can’t sell in Brentwood”

“The market there is dead!”

but…

look at what’s happened:

I track active and pending properties in many areas. By plotting a ratio I can see market shifts as they happen.

Brentwood’s recent move has been astounding!

The second chart is the Active/Pending ratio.

This as gone from a severe buyer’s market to what appears to be a Seller’s market!

But wait…

There’s more to this story.

Many homes in Brentwood have been foreclosed or otherwise been removed from the pool of available properties.

Many will return as sellers regain hope of selling.

Even if much of this is a short-term illusion, the change has been dramatic.

It’s possible that buyers are starting to sense a bottom, or at least an opportunity.

What do you think?

What does OPPORTUNITY sound like? Will you know it when it presents it’s self?

In the current phase of the Tri-Valley real estate market the sound of opportunity is “Chirp…Chirp…Chirp…”

Walk the streets, drive slow, listen for the annoying sound of chirping smoke detectors. Bank owned homes are sitting vacant, lawns are sprouting weeds, and smoke detector batteries are running low. Notices posted on doors are a sign of the times.

 For Buyers, this is a time to become a neighborhood expert. If you really know values, it’s becoming possible to catch some really good deals. Be careful not to fall for the idea of “it last sold for $700,000 so $500,000 must be a good deal”. Work with your Realtor to establish the proper current price but also be realistic about the future.

If prices decline another 20% this year( and they could) will that hurt you? Not really, if you have a long term plan for the property. A truly good deal needs to have multiple “exit strategies”. Buy right, plan carefully, make rational choices.

The OPPORTUNITIES are out there if you are prepared to hear them.

Eric Haggin

925 336-6462

eric@EastBayPlus.com

21,510 square foot office building with 3,000 square foot additional space located in Tulsa.
The property is conveniently located off of Hwy 169 at E. Pine Ave (just north of I-244)just minutes from the Internantional Airport in Tulsa, Oklahoma.
—-
Main building consists of 21,510 square feet of office space - all climate controlled.

Additional storage/shop building is 3,000 square feet with three grade level overhead doors and a garage/auto maintenance pit.
The property consists of 2.75 acres that has 260′ of frontage on E. Ute Ave. and runs 460′ deep.
 

Great for large company needing economical office space located close to airport, highways and downtown Tulsa.
Would be excellent for a call center or similar use.
Loopnet post is here < http://listing.loopnet.com/15574911 >

Property is priced extremely low for office space in Tulsa.

$4.00/Sq ft nnn- just $8,170/month for over 24,000 square feet of office and plenty of parking.

For more information please send email to TulsaOffice@EastBayPlus.com

Multiple times each day I get “The Question”:

How’s the market?

The only honest, useful answer is: “It depends“

It’s like asking “how’s the weather?”. It depends on where you are and what you want.

Do you raise cactus or sell umbrellas?

The TV news talks about “the market” for real estate in a way that they would never do for the weather. A national, or even Statewide weather report is useless. I want to know how the weather will be where I am now, or will be tomorrow.

Investor buyers have very different criteria from a home owner who needs to sell. Do you want to buy a home to get a good school for your kids, or do you want to buy for cash-flow.

If you ask a Realtor “how’s the market” and they don’t ask about your needs before answering, ask a different Realtor!

Eric Haggin 

Ask me at- 925 336-6462

Eric@EastBayPlus.com

Now on the Market! 

7342 Kolb Pl., Dublin, CA

Here is the Virtual Tour:

Here is the MLS printout.

Great built-in cabinets.

A great value at $750,000

How’s the market in Dublin ? >>> Dublin Detailed Market Statistics

Call Eric Haggin at 925 336-6462 for more information

Let’s all welcome the Lunar year of the Rat!

Wikipedia says the Rat “was welcomed in ancient times as a protector and bringer of material prosperity”. Sound great to me!

Here in the Tri-Valley 2007 brought wonderful cultural additions for the large Asian community and anyone who enjoys Asian foods.

In San Ramon Le Asia market opened , soon after, 99 Ranch in Dublin opened.

Recently the Ulferts Plaza in Dublin has come to life.

We tried to go to the new Dim-Sum restaurant ”Koi Garden” last weekend, but it was completely full with a long waiting list.

For families such as mine with strong ties to Chinese culture (my wife is from Taiwan) it’s great to have these places close to our home. We still enjoy going to Oakland Chinatown, but now we can get our speciality groceries without planning ahead.

Eric Haggin

925 336-6462

EricH@EastBayPlus.com