10 Best U.S. Housing Markets: Only Two in California

forbes-nyc

Courtesy Forbes.com New York City

Chicago Sun-Times published this deansguide article 2-27-09

FoxBusiness.com published this deansguide article 2-27-09

According to a new Forbes.com report “10 Best and Worst US Housing Markets” California only has two markets rated in the top 10 Best: San Diego #5 and Los Angeles at #9. The most surprising fact was San Francisco’s ranking as the #5 Worst housing market in the nation.

The 10 Best Housing Markets in the US

  1. New York, NY
  2. Washington, D.C.
  3. Charlotte, NC
  4. Portland, OR
  5. San Diego, CA
  6. Denver, CO
  7. Boston, MA
  8. Dallas, TX
  9. Los Angeles, CA
  10. Seattle, WA
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National Association of Realtors’ Twitter Strategy

The National Association of Realtors is one of the most, if not the most, powerful associations in the real estate industry.The people at NAR are often helpful, very pleasant, and professional in their approach. They take their jobs seriously; and that is why I am puzzled.

The NAR’s mission is to support Realtors, educate the masses, and provide a touch point for an industry that is quickly changing. The biggest change is the utilization of social media tools and blogs, by Realtors and brokerages, for branding, marketing, and lead generation. One of the most prominent of these new tools is the microblogging phenomenon called Twitter.com.

“The Voice for Real Estate”

If the NAR is setting the tone by being “The Voice for Real Estate” and leading by example then what is their Twitter strategy? My point is why don’t the people running the NAR twitter account give a voice to Realtors on Twitter?

Follow Strategy for Twitter

Many major brands or entrepreneurs that utilize Twitter want to initiate conversations with their targeted audience. The strategy most often used supports an open follow process on Twitter. Simply put if you follow Guy Kawasaki he follows you back-each and everyone of you.

The question I would like the NAR to answer: Why don’t you follow any of your constituents who follow you? If the NAR is the “Voice of Real Estate” why not give voice to Realtors, brokers, and affiliate service providers in the industry by following each one of these people back? As of this date, February 15, 2009 the NAR strategy:

Fact: 539 Realtors, brokers, industry affiliates follow NAR on Twitter
Fact: NAR follows “0” as in zero as in none as in nobody

The following is a snapshot of the NAR Twitter page:

nar-twitter-account2

Ed Okun Victim Cautions LandAmerica Victims, Challenges Government, Admonishes 1031 Exchange Industry

Note of Disclaimer: The following comment, story, and opinion(s) are that of the commenter Elizabeth Callanan and not that of deansguide or the author of deansguide Dean Guadagni. Those of you who have read this blog in the past know where I stand. I am a victim’s advocate and simply creating a place for victims or industry pro’s to communicate.

The following are opinions, experiences and stories of the trials and tribulations of the 1031 exchange industry from long time contributor and commenter Elizabeth Callanan one of the 350 “Trainwreck Victims” of the Ed Okun 1031 Tax Group Ponzi scheme. This is a warning, it is a plea, and it is her argument for the complete overhaul of the 1031 exchange industry–or it’s outright Abolishment.

Note: Not all of the 1031 exchange companies are bad, fradulent, or subversive. There are well respected, honest, and worthwhile 1031 exchange companies doing business.

——————————————-

To Daniel Lowe and the other victims of the LandAmerica debacle,

You have my most heartfelt empathy.
Having been myself a victim of Ed Okun’s embezzlement of exchangers funds on deposit with the 1031 Tax Group, I truly feel your pain. I’m not an attorney, an accountant, and have no expertise apart from what comes of painful firsthand experience. It was in the hopes of warning other potential exchanger/victims that I started posting on Dean’s List and elsewhere.

At the end of the day, though, I agree totally with Yaco Tiamo, who has posted here. The entire 1031 industry is superfluous and that aspect of the IRS’ 1031 regulations should be expunged. It is a wildly unregulated industry that answers to no government oversight at any level (apart from some half-hearted oversight incorporated in a couple of recently enacted regs by a handful of states (Nevada, California?) and, as evidenced, by the recent spate of embezzlements or gross mismanagement puts all exchangers at great risk for no good reason. Doing a 1031 isn’t brain surgery. The forms are pretty standard and the process pretty simple, really.

Since the IRS has shown no interest in overseeing, licensing, demanding accountability from, providing meaningful insurance for (as the SEC does) or otherwise regulating the industry it created, it should kill it – NOW!

As to the LandAmerica victims, my (personal, not professional!!) advice in terms of investing in legal help is two-fold and in both cases I would act only collectively (except for those whose funds were held in traceable segregated accounts, who will no doubt make a serious (and perhaps successful) run at retrieving those funds, I see little point in acting individually — certainly not in bankruptcy, a self-funding and self-perpetuating legal and financial train wreck for everyone involved except the court appointed functionaries. (If you want to see the extent to which such a process can drag on ad nauseam with many billable hours just check out the history of the 1031 Tax Group case on either of these sites: http://www.committeeinfo.com/1031/index.htm (the official website for our Creditors Committee) or http://trustee1031taxgroup.com/component/option,com_frontpage/Itemid,1/ (the Trustee’s website).)

However, I WOULD hire a legal firm (on contingency if you can – since, by definition, you no longer have any money!) to:

1) GET YOUR CASE OUT OF BANKRUPTCY COURT!! That is a deep dark hole that will suck up every dime of funding available until there’s nothing but dust left. In the 19 months since Ed Okun put the 1031 Tax Group into “bankruptcy” (it was a criminal embezzlement plain and simple now being tried in a US Federal Court in Richmond which was known at the time the bankruptcy was filed in May 07 — the Feds having raided the offices in April 07 — and should never have been accepted as a legitimate bankruptcy to start with!) all of the various court-appointed functionaries have claimed MORE THAN $30 MILLION IN SO-CALLED “ADMINISTRATIVE FEES” and victims have received not one penny of their escrow funds. In fact, in an amazingly brazen and twisted miscarriage of justice, the Bankruptcy Court authorized attorneys for the so-Called “Debtors” (ironically the Dreier firm whose owner embezzled millions in escrow funds himself) to pursue a legal action to retrieve the only escrow funds that Okun himself had not been able to steal and the settlement cozily agreed to by the attorneys on both sides (and approved by the Court) provided for payment as well to the attorneys DEFENDING the bank where those funds were on deposit — the end result of which is that the costs of BOTH SIDES of that court case will be paid by Okun’s victims. (So, to our point of view we were mugged first by Okun and then by the Bankruptcy Court!) The only way to get that Bankruptcy action derailed is to get the Committee itself on board (not easy since the Committee’s attorneys will understandably vehemently argue against the prospect of losing their cash cow), but I’d consider that a first priority.

2) Get a class action going to pursue all the parties involved, including especially LandAmerica to force them to use the proceeds from the sale of its other two arms to repay the exchange funds it squandered on worthless investments.

I sincerely hope you are more successful than we’ve been to date in retrieving even a dime of our life savings. The key is acting collectively and getting a junkyard dog of an attorney who is willing to work on a contingency (which means you’ll get 25% less than you otherwise might, but most of Okun’s victims would happily settle for that today!). Unfortunately in bankruptcy there is absolutely NO incentive for settling anything quickly. It’s all about billable hours — for attorneys, for management companies, for accounting firms, and all the other hangers-on who can get their licks in. If I were you, I’d follow the lead of the creditors in the Southwest Exchange Case – which happened just a few months prior to our’s and in which there’s been a settlement of $92 million of the $97 million lost (minus the contingency and other costs incurred by the attorney) while WE HAVE NOTHING and dismal prospects ahead.

You’ve gotten off to a better start than we did, it appears. You have a website (noted above by one of your fellow victims), your Committee seems to communicate with you (our’s has maintained a nearly absolute silence and shares NO information whatsoever for reasons none of us can fathom), and I understand you’re collectively discussing a civil class action which I encourage you to pursue.

Good luck to you all — sincerely.

New $330 Million Class Action Suit Targets LandAmerica 1031 Exchange Services and Sun Trust Bank

Chicago Sun-Times news service published this deansguide article 1-21-09

In what must be the most frustrating of 1031 exchange collapses, clients of title insurance mainstay LandAmerica have filed a $330 million class action suit against  the failed LandAmerica Exchange Services, part of LandAmerica title, and Sun Trust Bank. According to the Richmond Times-Dispatch story the charges specifically focus on actions of “defrauding clients by using their money to pay off other clients.” That would sound like an old fashion ponzi scheme and have we not heard this story before in the Ed Okun 1031 Tax Group travasty?

Two Principles Named

According to the Richmond Times-Dispatch’s Emily C. Dooley, two top executives for LandAmerica 1031 Exchange Services were named in the suit a Stephen Connor and G.William Evans. “Evans is also the chief financial officer for LandAmerica Financial Group” according to the story.

The Final Final

According to Dooley’s report “The lawsuit claims that LandAmerica used money from new customers to pay off older customers whose money had become inaccessible because it was invested in auction-rate securities, a type of credit that froze in February.”

Remarked Robert L. “Rusty” Brace  California attorney for one of the victims: “Once that market failed, [LandAmerica Exchange Services] should have shut down.  .  . Our money was used to pay those other exchangers.”

Win $1 Million California Home for $150

The auction and contest trend for selling a home in a tough real estate market continues with the latest edition. The Bahms of Tracy, Ca have created a contest with a twist. For the price of a $150 entry fee and the answer to their own word question, you can be the lucky owner of their ranch style home.

The Deal

The Bahms make make money on their contest by selling 11,000 entry fees at $150. That is the minimum number of tickets necessary to make the contest official. With that number the Bahms would be looking at a cool $1.6 million. They decided to cap the number at 13,000 which would mean $1.9 million payday.

The Charity

The Bahms have been quoted, by the Contra Costa Times, as stating they would like to donate $300,000 of their fee total to the charities of their choice. In any economic times, that is a noble gesture.

California 1 of 5 States With Worst Unemployment Rate

Flag of California

FoxBusiness.com published this deansguide article 1-11-09
The Courier News member of the Chicago Sun-Times News Group published this deansguide article 1-11-09
Post Tribune member of the Chicago Sun-Times News Group published this deansguide article 1-11-09

California has 1 of the 5 highest unemployment rates in the country according to a new report from the Associated Press Ray Henry and Christopher Rugaber. The most telling factor is that each state has something in common “a heightened exposure to the root causes of this downward spiral.”

Factors in Common:

  • Housing collapse
  • Auto Industry implosion
  • Financial Services meltdown
  • Manufacturing decline

5 Worst States by Unemployment Numbers and Symptoms:

1. Michigan: Auto industry’s near collapse and uncertainty.

2. Rhode Island: Manufacturing decline and construction stoppages

3. South Carolina: Manufacturing decline, construction losses

4. California: Housing market implosion, lender meltdown, builder losses, foreclosures

5. Oregon: Timber industry hurt by housing stall

Real Estate’s Role in California’s Economic Woes:

A very telling fact is  California’s unemployment rate of  8.4%, third highest in the nation, has been primarily due to the collapse of the real estate market. Nothing surprising in that statement but “in the year ending in November 2008, 71 percent of the nonfarm jobs lost in California were housing-related.”

Economist.com City Liveability Rankings: Vancouver, British Columbia #1

The well respected, if not sometimes controversial, economist.com came out with their Liveability rankings or what they describe as ” world’s most liveable city.” The findings provided by the “Economists Intelligence unit” rank 140 cities worldwide. The winner and #1 most liveable city in the world this year is Vancouver, British Columbia. Not one American city appeared in the top ten cities. It is interesting to note that three Canadian cities, Vancouver-Toronto-Calgary, were all ranked in the top 10 most liveable cities in the world.

Methodology

First the economist “quantifies the challenges” that might be presented to an individual’s lifestyle in 140 cities worldwide.They then score each city on 30 qualitative and quantitative factors over these 5 broad categories:

1. Stability

2. Health care

3. Culture and environment

4. Education

5. Infrastructure.

The Intelligence unit then assigned scores based on a 100 point system with a score of 100 being the most ideal, liveable city in the world and a 1 being the worst. The following are the rankings of the Best and Worst cities:

Courtesy of the economist.com Intelligence unit: