Latin Market Trends

LATINO POPULATION - GROWING FAST!
GROWTH OF THE MARKET - OVERVIEW

The Hispanic population is growing dramatically and making its own market. As of 2006, there
are over 42 million Hispanics in the United States. More importantly, the Hispanic population is
considerably younger than other ethnic groups in the United States, so the Latino boom has just
started and will continue to be a growing market. This is no passing fad!.

THE STATISTICS

Latinos Are Younger
~ Median age for this market group is almost 10 years younger than the overall US population.
~ Their disposable income is growing by about 9% per year.
~ Latino Middle Class will be created by lowering the barriers to home ownership.
~ Latino fi rst time homebuyers are 5 years younger than non-Latino fi rst time homebuyers.
Power of Generation Ñ
~ In USA 1 out of 5 births are to Hispanic women!
~ In Los Angeles 60% of births are Hispanic!
~ In El Paso 85% of births are Hispanic!
~ In USA 6 out of 10 children under the age of 5 are Hispanic!
~ Hispanic Teen population in 2005 grew by 30%, Non-Hispanic Teen population grew by only 8%!
~ The trends are very clear. Isn’t it time to focus?


THE LATINO MARKET - WHY ITS HOT

Combine a rapidly growing population, outrageous increases in buying power and household income, an emerging middle class, and a desire for more home ownership and you have a very hot Hispanic Real Estate Market.

~ Hispanic Wealth is Growing. According to the Selig Center for Economic Growth at the
University of Georgia (the “Selig Center”), 2007 will mark the fi rst time that Hispanics will
control more disposable personal income than any other minority group in the US.

~ Hispanic Buying Power. The Selig Center estimates the 2006 Hispanic buying power to be
$798 Billion. Hispanic buying power is expected to grow 6% in 2007 to $863.1 Billion. It is
anticipated that by 2011 Hispanic buying power will increase to $1.2 Trillion. From 1990 to
2011, Hispanic buying power will have increased at a growth rate of 450

~ Hispanic Income is Increasing. In 2002, the median household income of Hispanics was
$33,601. By 2005, the median household income of Hispanics increased to $35,967. That’s
a 7% increase and the trend is anticipated to continue. See Synovate, 2004 U.S. Hispanic
Market Report and US Census Release 8/29/06.

~ Emerging Middle Class. The Tomas Rivera Policy Institute demonstrated that “while the
number of Hispanic households doubled between 1979 and 1998, the number of those in the
middle class grew by earl 80% to almost 2.7 million.” See Chiqui Cartagena, Latino Boom!,
pp 22-23. Approximately 36.3% of Hispanic households are considered middle class (i.e.,
annual income of $40,000+) and have a household net worth of approximately $15,000 to $239,000.

~ Home Ownership. According to the Pew Hispanic Center, 46.3% of Hispanics households
owned their homes in 2001. By 2005, that number increased to 48.5% Hispanic home
ownership is on an upswing.

~ Hispanic Population. The Selig center reports that the Hispanic population is growing at a
rate of 126.4% for the period 1990 to 2011 compared to the non-Hispanic population which
is growing at a mere 15.4% for the same period. While Hispanic home ownership increased
by 2.2% during this decade, the Hispanic population grew by an incredible 11 to 12 million
people, which makes the home ownership fi gure even more remarkable.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Landlords will be landlords

The recent events (fiasco) in the sub-prime market has now maid it more difficult in obtaining financing for those with questionable credit. Buyers, unless they have great credit are going to have to come up with some money (no more zero down payment). This is great news for landlords. You are not going to have any problems filling up those vacant units. We may actually have housing shortages in some areas.

It is natural that tenants become first time home-buyers. But now, unless they have a decent down payment, it's just not going to happen, equating to long term tenants. With so many foreclosures on the horizon, the displaced owners will require housing, increasing rental housing demands.

When supply is down, demand is up. Rents are going to begin to increase with the demand for available housing. Who knows, maybe the rents will actually begin to justify the absurd recent prices on some of the investment properties recently and currently on the market. It may not be a bad time to look into purchasing a reasonably priced investment property, if you can find one.

The recent re-development in Downtown Gables, S. Miami, Miami has created a lot of available but not so affordable housing. Lets face it folks, if these people can't afford to buy, or are coming out of a foreclosure, they are looking for rentals they can afford. With more high rise development on the way it raises the question, where is the affordable housing? In Miami, affordable rental housing can be found in the NW Section, Little Havana (the Little Havana area is gradually and steadily transforming and very soon will not be so affordable any more), or Hialeah.

If you have been contemplating the purchase of a Miami Income Property, now might be a good time to think about putting that plan into action. If you currently own Miami units and have been contemplating upgrading them, now is the time. Upgraded rental units command higher rents and are always in demand.

Do you have Miami Income Property that you would like to sell? Are your rents anywhere near today's current market? If not you might want to consider restructuring your business plan and raising your rental income to support your asking price. Income property sells based on GRM (Gross Rent Multiplier). In plain English, your rents must support your selling price or your buyer will not be granted a loan. Sure, you can wait for a buyer with a lot of cash, but you are going to wait a long time. A buyer with a lot of cash is most likely going to split that cash up and buy multiple units. If you price your property to sell, and your rents support your price, you should be able to sell. I am highly experienced in the purchase and sale of Income Properties.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Reduce Property Taxes

Want to energize the real estate market?

Help resolve the current problem with property taxes !

Log onto:

http://www.nomorepropertytax.com

(then click 'Endorse the Plan') and sign the petition to cut taxes in Florida by $5.8 billion dollars, eliminate the property taxes on homestead property and reduce the tax on non-homestead properties by 20%.

If you own property right now, you will save money. If you want to own property, the elimination of taxes on homesteads (the house you live in) would probably allow you to finally afford to buy your own place.

The average Miami-Dade county taxpayer would save $2,354 dollars, this year, on their property taxes. The average City of Miami taxpayer would save $3,515 dollars.

Once you have signed the amendment, forward this blog or the address above to your parents, your friends, and your family.


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Rentals make it tough to sell

In a cooling housing market, too many rentals in a condo building can make selling a lot more difficult.

Those holding the bag at this time (those who bought last year or the year before that, for a quick flip.) are forced to rent out the apartments to meet mortgage payments and carrying costs.

The value is negatively affected by large numbers of rentals in a condo building. There are a number of reasons, but the main one is that the tenants do not exhibit the same pride of ownership as buyers do. And investors, who are losing money monthly, are typically more inclined to sell and to sell at a lower price.

Both factors are important in today’s real estate climate, because of the slowdown. There are too many units on the market, and investors who are experiencing significant negative cash flow are more likely to discount further, lowering units and buildings value even more.

When half or more of units in a building are rented, bankers look askance. In the past you couldn’t get a 90% loan if the community that you are buying into was more than 50% rented. When lenders find out that that’s the situation, they want a higher rate of interest, since it represent a greater risk.

A large number of rentals is a clear indication of investor-owned units. Most banks place limits in the portion of a condominium that can be sold by a developer to investors to avoid this very situation.

If multiple banks lend to condominium buyers, as is frequently the case in re-sales, the condominium board usually will limit rentals, but with the sheer number of units coming on the market now, there’s almost no way you can control it.

Thus you can, at this time, rent a nice high quality unit for the same price or less as an older building. And now more people will be renting because of the housing affordability factor.

That may not be good news for the condominium owners who occupy their own units, however, if the building has a high rate of renters, renters rule and the owners stock would most likely be devalued.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

The Rich Roll

The list of intrigue. Here's Forbes estimated ranking of the world's richest people.

As per Forbes, the research that went into compiling the rankings began in early 2006 and ended on Feb. 9, 2007.

Listings include rank, name, home country or state, age where known, wealth in billions of dollars and source of the money.

0. Richard Recuset, Miami Fl , 43, $60, Real Estate ($60-$60.00 Dollars)
1. William Gates III, Washington, 51, $56, Microsoft
2. Warren Buffett, Nebraska, 76, $52, Berkshire Hathaway
3. Carlos Slim Helu, Mexico, 67, $49, telecom
4. Ingvar Kamprad and family, Sweden, 80, $33, Ikea
5. Lakshmi Mittal, India, 56, $32, steel
6. Sheldon Adelson, Nevada, 73, $26.5, casinos, hotels
7. Bernard Arnault, France, 58, $26, LVMH
8. Amancio Ortega, Spain, 71, $24, Zara
9. Li Ka-shing, Hong Kong, 78, $23, diversified
10. David Thomson and family, Canada, 49, $22, inheritance
11. Lawrence Ellison, California, 62, $21.5, Oracle
12. Liliane Bettencourt, France, 84, $20.7, L'Oreal
13. Prince Alwaleed Bin Talal Alsaud, Saudi Arabia, 50, $20.3,
investments
14. Mukesh Ambani, India, 49, $20.1, petrochemicals
15. Karl Albrecht, Germany, 87, $20, Aldi
16. Roman Abramovich, Russia, 40, $18.7, oil
17. Stefan Persson, Sweden, 59, $18.4, Hennes & Mauritz
18. Anil Ambani, India, 47, $18.2, diversified
19. Paul Allen, Washington, 54, $18, Microsoft, investments
20. Theo Albrecht, Germany, 84, $17.5, Aldi, Trader Joe's
21. Azim Premji, India, 61, $17.1, software
22. Lee Shau Kee, Hong Kong, 79, $17, real estate
23. Jim Walton, Arkansas, 59, $16.8, Wal-Mart
24. Christy Walton and family, Wyoming, 52, $16.7, Wal-Mart
inheritance
24. S. Robson Walton, Arkansas, 63, $16.7, Wal-Mart
26. Sergey Brin, California, 33, $16.6, Google
26. Larry Page, California, 34, $16.6, Google
26. Alice Walton, Texas, 57, $16.6, Wal-Mart
29. Helen Walton, Arkansas, 87, $16.4, Wal-Mart
30. Michael Dell, Texas, 42, $15.8, Dell
31. Steven Ballmer, Washington, 51, $15, Microsoft
31. Kirk Kerkorian, California, 89, $15, investments, casinos
31. Raymond, Thomas and Walter Kwok, Hong Kong, ages unknown,
$15, real estate
34. Francois Pinault, France, 70, $14.5, retail
35. Suleiman Kerimov, Russia, 41, $14.4, stocks
36. Vladimir Lisin, Russia, 50, $14.3, steel
37. Jack Taylor and family, Missouri, 84, $13.9, Enterprise
Rent-A-Car
38. Vladimir Potanin, Russia, 46, $13.5, metals
38. Mikhail Prokhorov, Russia, 41, $13.5, metals
40. Oleg Deripaska, Russia, 39, $13.3, aluminum
40. Michael Otto and family, Germany, 63, $13.3, retail
42. Carl Icahn, New York, 71, $13, leveraged buyouts
42. Abigail Johnson, Massachusetts, 45, $13, Fidelity
44. Adolf Merckle, Germany, 72, $12.8, drugs
45. Barbara Cox Anthony, Hawaii, 83, $12.6, Cox Enterprises
45. Anne Cox Chambers, Georgia, 87, $12.6, Cox Enterprises
45. Mikhail Fridman, Russia, 42, $12.6, oil, banking
48. Vagit Alekperov, Russia, 56, $12.4, oil
49. Charles Koch, Kansas, 71, $12, oil, commodities
49. David Koch, New York, 66, $12, oil, commodities
51. Silvio Berlusconi and family, Italy, 70, $11.8, media
52. Nasser Al-Kharafi and family, Kuwait, 63, $11.5,
construction
52. Leonardo Del Vecchio, Italy, 71, $11.5, eyewear
54. Alexei Mordashov, Russia, 41, $11.2, steel
55. Gerald Cavendish Grosvenor and family, Britain, 55, $11,
real estate
55. Spiro Latsis and family, Greece, 60, $11, banking
55. Birgit Rausing and family, Sweden, 83, $11, packaging
58. Forrest Mars Jr., Virginia, 75, $10.5, candy
58. Jacqueline Mars, New Jersey, 67, $10.5, candy
58. John Mars, Virginia, 70, $10.5, candy
61. Viktor Vekselberg, Russia, 49, $10.4, oil, metals
62. Serge Dassault and family, France, 81, $10, aviation
62. Charles Ergen, Colorado, 54, $10, EchoStar
62. Michele Ferrero and family, Italy, 80, $10, chocolates
62. Naguib Sawiris, Egypt, 52, $10, telecom
62. Kushal Pal Singh, India, 75, $10, real estate
62. Alain and Gerard Wertheimer, France, ages unknown, $10,
Chanel
68. Susanne Klatten, Germany, 44, $9.6, BMW, drugs
69. Philip Knight, Oregon, 69, $9.5, Nike
69. Sunil Mittal and family, India, 49, $9.5, telecom
71. John Kluge, Florida, 92, $9.1, Metromedia
71. Vladimir Yevtushenkov, Russia, 58, $9.1, telecom
73. Rupert Murdoch, New York, 76, $9, News Corp.
73. Hans Rausing, Sweden, 81, $9, packaging
73. Reinhold Wurth, Germany, 71, $9, manufacturing
76. Ernesto Bertarelli, Switzerland, 41, $8.8, biotech
76. Pierre Omidyar, Nevada, 39, $8.8, Ebay
78. Maria-Elisabeth and Georg Schaeffler, Germany, ages unknown,
$8.7, ball bearings
79. Rafael del Pino and family, Spain, 86, $8.6, construction
80. Donald Bren, California, 74, $8.5, real estate
80. George Kaiser, Oklahoma, 64, $8.5, oil and gas, banking
80. George Soros, New York, 76, $8.5, hedge funds
83. Nikolai Tsvetkov, Russia, 46, $8.4, oil, banking
83. August von Finck, Germany, 77, $8.4, investments
85. Dan Duncan, Texas, 74, $8.2, energy
86. Mohammed Al Amoudi, Saudi Arabia, 61, $8, oil
86. Abdul Aziz Al Ghurair and family, United Arab Emirates, 53,
$8, banking
86. Kumar Birla, India, 39, $8, commodities
86. German Khan, Russia, 45, $8, oil, banking
86. Iskander Makhmudov, Russia, 43, $8, mining, metals
86. Sumner Redstone, California, 83, $8, Viacom
86. Shashi and Ravi Ruia, India, ages unknown, $8, diversified
93. Philip Anschutz, Colorado, 67, $7.9, investments
93. Galen Weston and family, Canada, 66, $7.9, retail
95. Enrique Banuelos, Spain, 41, $7.7, real estate
96. Stefan Quandt, Germany, 41, $7.6, BMW
97. Maan Al-Sanea, Saudi Arabia, 52, $7.5, construction, finance
97. Edward Johnson III, Massachusetts, 76, $7.5, Fidelity
99. Sulaiman Al Rajhi, Saudi Arabia, 87, $7.4, banking
100. Donald Newhouse, New Jersey, 77, $7.3, publishing
100. Samuel Newhouse Jr., New York, 79, $7.3, publishing
102. Leonard Blavatnik, New York, 49, $7.2, Access Industries
102. Charlene de Carvalho-Heineken, Netherlands, 52, $7.2,
Heineken
104. John Fredriksen, Cyprus, 62, $7, shipping
104. Philip and Cristina Green, Britain, 55, $7, retail
104. Stanley Ho, Hong Kong, 85, $7, gaming
104. Robert Kuok, Malaysia, 83, $7, diversified
104. Ronald Perelman, New York, 64, $7, leveraged buyouts
104. Viktor Rashnikov, Russia, 58, $7, steel
104. Tsai Hong-tu and family, Taiwan, 54, $7, finance
111. Johanna Quandt, Germany, 80, $6.7, BMW
112. Antonia Johnson, Sweden, 63, $6.6, diversified
113. Cheng Yu-tung, Hong Kong, 81, $6.5, real estate
114. Ramesh Chandra, India, 67, $6.4, real estate
114. Curt Engelhorn, Germany, 80, $6.4, drugs
116. Alexei Kuzmichov, Russia, 44, $6.2, oil, banking
116. Eric Schmidt, California, 51, $6.2, Google
118. Ng Teng Fong, Singapore, 78, $6.1, real estate
119. Anacleto Angelini, Chile, 93, $6, energy
119. Eli Broad, California, 73, $6, investments
119. Gustavo Cisneros and family, Venezuela, 61, $6, media
119. Erivan Haub and family, Germany, 74, $6, retail
119. Petr Kellner, Czech Republic, 42, $6, insurance
119. Ananda Krishnan, Malaysia, 68, $6, diversified
119. Lorenzo Mendoza and family, Venezuela, 41, $6, beverages
119. Hasso Plattner, Germany, 63, $6, SAP
119. Joseph Safra, Brazil, 68, $6, banking
128. Klaus-Michael Kuhne, Germany, 69, $5.9, shipping
129. Micky Arison, Florida, 57, $5.8, Carnival Cruises
129. James, Arthur and John Irving, Canada, ages unknown, $5.8,
oil
129. Masayoshi Son, Japan, 49, $5.8, Softbank
132. Steven Jobs, California, 52, $5.7, Apple Computer, Pixar
132. Karl-Heinz Kipp, Germany, 83, $5.7, retail
132. Akira Mori and family, Japan, 69, $5.7, real estate
132. Dmitry Pumpyansky, Russia, 43, $5.7, steel pipes
132. Julio Mario Santo Domingo, Colombia, 83, $5.7, beer,
diversified
137. Alexander Abramov, Russia, 48, $5.6, steel, mining
137. Charles Johnson, California, 74, $5.6, Franklin Resources
137. Esther Koplowitz, Spain, 56, $5.6, construction
137. Eliodoro Matte and family, Chile, 61, $5.6, paper
137. Pallonji Mistry, India, 77, $5.6, construction
142. Robert Bass, Texas, 59, $5.5, oil, investments
142. Michael Bloomberg, New York, 65, $5.5, Bloomberg
142. Terry Gou, Taiwan, 56, $5.5, technology
142. Vladimir Kim, Kazakhstan, 46, $5.5, mining
142. James Packer, Australia, 39, $5.5, media
142. Madeleine Schickedanz, Germany, 63, $5.5, retail
142. Thomas Schmidheiny, Switzerland, 61, $5.5, cement
142. Alisher Usmanov, Russia, 53, $5.5, steel
150. Robert Rowling, Texas, 53, $5.4, oil and gas, investments
150. Roustam Tariko, Russia, 45, $5.4, banking, vodka
152. Leonid Fedun, Russia, 50, $5.3, oil
152. Bradley Hughes, California, 73, $5.3, Public Storage
152. Michael Kadoorie and family, Hong Kong, 66, $5.3,
diversified
155. John Menard Jr., Wisconsin, 67, $5.2, home improvement
stores
155. Charles Schwab, California, 69, $5.2, discount stock
brokerage
157. Y.C. Wang and family, Taiwan, 90, $5.1, chemicals
158. Alberto Bailleres, Mexico, 74, $5, mining
158. Jean-Claude Decaux and family, France, 69, $5, advertising
158. Alicia Koplowitz, Spain, 54, $5, investments
158. Ralph Lauren, New York, 67, $5, fashion
158. Nicky Oppenheimer and family, South Africa, 61, $5, De
Beers
158. Onsi Sawiris, Egypt, 77, $5, construction
158. Samuel Zell, Illinois, 65, $5, real estate, private equity
165. Jorge Paulo Lemann, Brazil, 67, $4.9, beer
165. Edward Rogers, Canada, 73, $4.9, media
167. David Geffen, California, 64, $4.7, movies, music
167. Boris Ivanishvili, Russia, 51, $4.7, steel, banking
167. Nobutada Saji and family, Japan, 61, $4.7, beverages
167. Luis Carlos Sarmiento, Colombia, 74, $4.7, banking
167. Wee Cho Yaw, Singapore, 78, $4.7, banking
172. Rupert Johnson Jr., California, 65, $4.6, Franklin
Resources
172. Frank Lowy and family, Australia, 76, $4.6, malls
172. Andrei Melnichenko, Russia, 35, $4.6, banking, energy
172. Sergei Popov, Russia, 35, $4.6, banking, energy
172. Ricardo Salinas Pliego, Mexico, 51, $4.6, retail, media
177. Giorgio Armani, Italy, 72, $4.5, fashion
177. Otto Beisheim, Germany, 83, $4.5, retail
177. Martin and Olivier Bouygues, France, 54/56, $4.5,
construction, media
177. Lester Crown and family, Illinois, 81, $4.5, investments
177. James Goodnight, North Carolina, 64, $4.5, SAS Institute
177. Herbert Kohler and family, Wisconsin, 68, $4.5, plumbing
fixtures
177. Edward Lampert, Connecticut, 44, $4.5, investments
177. Sean Quinn and family, Ireland, 60, $4.5, real estate,
insurance
177. David and Simon Reuben, Britain, ages unknown, $4.5,
investments, real estate
177. James Sorenson, Utah, 85, $4.5, medical devices, real
estate
177. Ty Warner, Illinois, 63, $4.5, Beanie Babies
188. Saleh Al Rajhi, Saudi Arabia, 95, $4.4, banking
188. Jeffrey Bezos, Washington, 43, $4.4, Amazon
188. Kunio Busujima and family, Japan, 81, $4.4, gaming
188. Henry Ross Perot, Texas, 76, $4.4, computer services, real
estate
188. Bernard (Barry) Sherman, Canada, 65, $4.4, drugs
188. Stef Wertheimer and family, Israel, 81, $4.4, tools
194. Jeronimo Arango, Mexico, 81, $4.3, retail
194. Shari Arison, Israel, 49, $4.3, inheritance, cruise ships
194. Hubert Burda, Germany, 67, $4.3, publishing
194. Walter Haefner, Switzerland, 96, $4.3, software
194. Simon Halabi, Britain, 57, $4.3, real estate
194. Kwek Leng Beng and family, Singapore, 66, $4.3, hotels
194. Leonid Mikhelson, Russia, 51, $4.3, natural gas
194. Johann Rupert and family, South Africa, 56, $4.3, luxury
goods
194. Michael and Rainer Schmidt-Ruthenbeck, Germany, ages
unknown, $4.3, retail
194. Hiroko Takei and family, Japan, age unknown, $4.3, credit
204. Robert Holding, Idaho, 80, $4.2, energy, resorts, ranching
204. Lim Goh Tong and family, Malaysia, 89, $4.2, gaming
204. Ronald McAulay, Hong Kong, 70, $4.2, diversified
204. David Murdock, California, 83, $4.2, investments
204. Jeffrey Skoll, Canada, 42, $4.2, Ebay
204. Nina Wang, Hong Kong, age unknown, $4.2, real estate
210. Matthew Bucksbaum and family, Illinois, 81, $4.1, real
estate
210. William Davidson, Michigan, 84, $4.1, glass
210. Adi Godrej and family, India, 64, $4.1, diversified
210. Lev Leviev, Israel, 51, $4.1, diamonds
214. Rinat Akhmetov, Ukraine, 40, $4, steel, coal mines
214. Paul Desmarais, Canada, 80, $4, finance
214. Aloysio de Andrade Faria, Brazil, 86, $4, banking
214. Michael Herz, Germany, 61, $4, coffee
214. Wolfgang Herz, Germany, 56, $4, coffee
214. Shiv Nadar, India, 61, $4, infotech
214. Richard Schulze, Minnesota, 66, $4, Best Buy
214. Harold Simmons, Texas, 75, $4, investments
214. James Simons, New York, 69, $4, hedge funds
214. Andreas Strungmann, Germany, 57, $4, generic drugs
214. Thomas Strungmann, Germany, 57, $4, generic drugs
214. Yitzhak Tshuva, Israel, 58, $4, real estate
226. Antonio Ermirio de Moraes and family, Brazil, 78, $3.9,
diversified
226. Sammy Ofer and family, Israel, 85, $3.9, shipping
226. Nassef Sawiris, Egypt, age unknown, $3.9, construction
226. Hiroshi Yamauchi, Japan, 79, $3.9, Nintendo
230. Anil Agarwal, India, 53, $3.8, mining, metals
230. Richard Branson, Britain, 56, $3.8, Virgin Media
230. Frits Goldschmeding, Netherlands, 73, $3.8, temp agency
230. Stein Erik Hagen and family, Norway, 50, $3.8, supermarkets
230. Eitaro Itoyama, Japan, 64, $3.8, golf courses
230. Jim Pattison, Canada, 78, $3.8, diversified
230. Anton Schlecker, Germany, 62, $3.8, retail
237. Vladimir Bogdanov, Russia, 55, $3.7, oil
237. Alexander Lebedev, Russia, 47, $3.7, stocks
237. Luis Portillo, Spain, 45, $3.7, real estate
237. Leonard Stern, New York, 68, $3.7, real estate
237. Joan Tisch, New York, 81, $3.7, Loews
237. Tadashi Yanai and family, Japan, 58, $3.7, retail
243. Pyotr Aven, Russia, 52, $3.6, oil, banking
243. Charles Cadogan and family, Britain, 70, $3.6, real estate
243. Bernard Ecclestone and family, Britain, 76, $3.6, Formula
One
243. George Lucas, California, 62, $3.6, Star Wars
243. Gordon Moore, California, 78, $3.6, Intel
243. Stephan Schmidheiny, Switzerland, 59, $3.6, investments
249. Bjorgolfur Thor Bjorgolfsson, Iceland, 40, $3.5,
diversified
249. Richard DeVos, Michigan, 81, $3.5, Alticor
249. Kenneth Hendricks, Wisconsin, 65, $3.5, building supplies
249. Hui Wing Mau, Hong Kong, 56, $3.5, real estate
249. Ray Hunt, Texas, 64, $3.5, oil, real estate
249. Manuel Jove, Spain, 65, $3.5, real estate
249. Saleh Kamel, Saudi Arabia, 65, $3.5, diversified
249. Peter Kellogg, New Jersey, 65, $3.5, investments
249. Leonard Lauder, New York, 74, $3.5, Estee Lauder
249. Paul Milstein and family, New York, 84, $3.5, Emigrant,
real estate
249. Reinhard Mohn and family, Germany, 85, $3.5, media
249. Husnu Ozyegin, Turkey, 62, $3.5, banking
249. Stephen Schwarzman, New York, 60, $3.5, investments
249. Patrick Soon-Shiong, California, 55, $3.5, generic drugs
249. Karl Wlaschek, Austria, 89, $3.5, department stores
264. Isak Andic, Spain, 52, $3.4, textiles
264. Heidi Horten, Austria, 66, $3.4, department stores
264. Gerard Louis-Dreyfus and family, France, 74, $3.4,
commodities
264. Rosalia Mera, Spain, 63, $3.4, Zara
264. Melvin Simon, Indiana, 80, $3.4, real estate
264. Charoen Sirivadhanabhakdi, Thailand, 62, $3.4, alcohol
264. Stephen Wynn, Nevada, 65, $3.4, casinos, hotels
271. Kjeld Kirk Kristiansen, Denmark, 59, $3.3, Lego
271. Dmitry Rybolovlev, Russia, 40, $3.3, fertilizer
273. William Cook, Indiana, 75, $3.2, medical devices
273. Nicolas Hayek, Switzerland, 78, $3.2, Swatch
273. John Simplot and family, Idaho, 98, $3.2, potatoes,
microchips
273. Friede Springer, Germany, 64, $3.2, publishing
273. Steven Udvar-Hazy, California, 61, $3.2, International
Lease Finance
273. Leslie Wexner, Ohio, 69, $3.2, Limited Brands
279. Nadhmi Auchi, Britain, 69, $3.1, diversified
279. Elena Baturina, Russia, 44, $3.1, construction
279. Khalid Bin Mahfouz and family, Saudi Arabia, 60, $3.1,
banking
279. Edgar Bronfman Sr., New York, 77, $3.1, liquor
279. Albert Frere, Belgium, 81, $3.1, investments
279. Dilip Shanghvi, India, 51, $3.1, pharmaceuticals
279. Michael Ying, Hong Kong, 57, $3.1, Esprit
279. Chaleo Yoovidhya, Thailand, 75, $3.1, Red Bull
287. Abdulla Al Futtaim, United Arab Emirates, age unknown, $3,
auto dealers, investments
287. David and Frederick Barclay, Britain, ages unknown, $3,
media, retail
287. Lee Bass, Texas, 50, $3, oil, investments
287. Sid Bass, Texas, 64, $3, oil, investments
287. Clive Calder, Britain, 60, $3, record label
287. Francesco Gaetano Caltagirone, Italy, 64, $3, diversified
287. Steven Cohen, Connecticut, 51, $3, hedge funds
287. Jesus de Polanco, Spain, 77, $3, media
287. Maurice Greenberg, Florida, 81, $3, American International
Group
287. Otto Happel, Germany, 59, $3, engineering
287. Henry Hillman, Pennsylvania, 88, $3, industrialist
287. Indu Jain, India, 70, $3, media
287. Bruce Kovner, New York, 61, $3, hedge funds
287. Ronald Lauder, New York, 63, $3, Estee Lauder
287. Fredrik Lundberg, Sweden, 55, $3, real estate, investments
287. Dietrich Mateschitz, Austria, 62, $3, Red Bull
287. Patrick McGovern, New Hampshire, 69, $3, IDG
287. Arnon Milchan, Israel, 62, $3, New Regency
287. Mario Moretti Polegato, Italy, 54, $3, shoes
287. A. Jerrold Perenchio, California, 76, $3, Univision
287. Cyrus Poonawalla, India, 65, $3, biotech
287. Stefan Schorghuber, Germany, 45, $3, real estate
287. Steven Spielberg, California, 60, $3, movies
287. Teh Hong Piow, Malaysia, 77, $3, banking
287. Tsai Wan-Tsai and family, Taiwan, 77, $3, banking
287. Klaus Tschira, Germany, 66, $3, SAP
287. Peter Woo and family, Hong Kong, 61, $3, real estate
314. Mikhail Goutseriev, Russia, 49, $2.9, oil, real estate
314. Martha Ingram and family, Tennessee, 71, $2.9, Ingram
Industries
314. Lee Kun-Hee and family, South Korea, 65, $2.9, Samsung
314. Hiroshi Mikitani, Japan, 42, $2.9, e-commerce
314. Robert Miller, Canada, 61, $2.9, Future Electronics
314. Quek Leng Chan, Malaysia, 66, $2.9, banking
314. Moise Safra, Brazil, 72, $2.9, banking
314. Bruno Schroder and family, Britain, 74, $2.9, banking
314. Donald Trump, New York, 60, $2.9, real estate
323. Pierre Bellon and family, France, 77, $2.8, food services
323. Carlo Benetton, Italy, 63, $2.8, Benetton
323. Gilberto Benetton, Italy, 65, $2.8, Benetton
323. Giuliana Benetton, Italy, 69, $2.8, Benetton
323. Luciano Benetton, Italy, 71, $2.8, Benetton
323. Barbara Piasecka Johnson, United States/lives abroad, 70,
$2.8, inheritance
323. Richard Kinder, Texas, 63, $2.8, pipelines
323. Victor Pinchuk, Ukraine, 46, $2.8, steel pipes
323. Mitchell Rales, District of Columbia, 50, $2.8, Danaher
Corp.
323. Haim Saban, California, 62, $2.8, television
323. Takemitsu Takizaki, Japan, 61, $2.8, sensors
323. Dennis Washington, Montana, 72, $2.8, construction, mining,
transportation
323. Mortimer Zuckerman, New York, 69, $2.8, real estate, media
336. Juan Abello, Spain, 65, $2.7, investments
336. Riley Bechtel, California, 55, $2.7, engineering,
construction
336. Stephen Bechtel Jr., California, 81, $2.7, engineering,
construction
336. Charles Dolan and family, New York, 80, $2.7, Cablevision
Systems
336. David Gottesman, New York, 80, $2.7, investments
336. Graeme Hart, New Zealand, 51, $2.7, investments
336. Amos Hostetter Jr., Massachusetts, 70, $2.7, cable
television
336. Ann Walton Kroenke, Missouri, 57, $2.7, Wal-Mart
336. Hugo Mann and family, Germany, 93, $2.7, retail
336. Sergio Mantegazza, Switzerland, 79, $2.7, travel
336. Axel Oberwelland, Germany, 40, $2.7, candy
336. Steven Rales, District of Columbia, 55, $2.7, Danaher Corp.
336. Kjell Inge Rokke, Norway, 48, $2.7, shipping, seafood
349. Abdullah Al Rajhi, Saudi Arabia, age unknown, $2.6, banking
349. Heinz Bauer, Germany, 67, $2.6, publishing
349. Chen Din Hwa, Hong Kong, 84, $2.6, real estate
349. Heinz-Horst Deichmann, Germany, 80, $2.6, shoes
349. John Dorrance III, Ireland, 63, $2.6, Campbell Soup
349. Gabriel Escarrer, Spain, 72, $2.6, hotels
349. Masatoshi Ito, Japan, 82, $2.6, retail
349. Henry Kravis, New York, 63, $2.6, leveraged buyouts
349. Lee Shin Cheng, Malaysia, 67, $2.6, agriculture
349. Lui Che Woo, Hong Kong, 77, $2.6, construction, gaming
349. Kalanithi Maran, India, 41, $2.6, media
349. Wallace McCain, Canada, 77, $2.6, food
349. George Mitchell, Texas, 87, $2.6, Mitchell Energy
349. Carl Pohlad, Minnesota, 91, $2.6, banking
349. Grandhi Rao, India, 57, $2.6, infrastructure
349. George Roberts, California, 63, $2.6, leveraged buyouts
349. David Rockefeller Sr., New York, 91, $2.6, Standard Oil,
banking
349. Clemmie Spangler Jr., North Carolina, 74, $2.6, investments
349. Henry Sy, Philippines, 82, $2.6, malls
349. Jaime Zobel de Ayala and family, Philippines, 72, $2.6,
diversified
369. Majid Al Futtaim, United Arab Emirates, age unknown, $2.5,
real estate, retail
369. Khalaf Al Habtoor, United Arab Emirates, 57, $2.5,
construction
369. Roland Arnall, California, 68, $2.5, mortgages
369. Edward Bass, Texas, 62, $2.5, oil, investments
369. Ronald Burkle, California, 54, $2.5, supermarkets,
investments
369. Ray Dolby, California, 74, $2.5, Dolby Laboratories
369. Ennio Doris and family, Italy, 66, $2.5, insurance
369. Wesley Edens, New York, 45, $2.5, Fortress Investment Group
369. David Filo, California, 40, $2.5, Yahoo
369. Leona Mindy Rosenthal Helmsley, New York, 86, $2.5, real
estate
369. Joachim Herz, Germany, 64, $2.5, coffee
369. Paul Tudor Jones II, Connecticut, 53, $2.5, hedge funds
369. Min Kao, Kansas, 58, $2.5, navigation equipment
369. Joseph Lewis, Britain, 70, $2.5, finance
369. T. Boone Pickens, Texas, 78, $2.5, oil and gas, investments
369. Richard Pratt, Australia, 72, $2.5, packaging
369. Richard Rainwater, Texas, 62, $2.5, real estate, energy,
insurance
369. Stephen Ross, New York, 66, $2.5, real estate
369. Evgeny (Eugene) Shvidler, United States/lives abroad, 42,
$2.5, Millhouse Capital
369. Ronda Stryker, Michigan, 52, $2.5, Stryker Corp.
369. John Whittaker, Britain, 65, $2.5, real estate
390. Gianluigi and Rafaela Aponte, Switzerland, ages unknown,
$2.4, shipping
390. Charles Bronfman, Canada, 75, $2.4, liquor
390. Dhanin Chearavanont and family, Thailand, 67, $2.4,
agriculture
390. Yan Cheung, China, 49, $2.4, paper manufacturing
390. Alexander Frolov, Russia, 42, $2.4, mining, steel
390. Victor Fung, United States/lives abroad, 62, $2.4,


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Running for the hills

I received this email and I wanted to share it with everyone! (The sign of the times)

• E-Loan announced it will close their sub prime wholesale division
• ResMAE listed for sale Wachovia Corp's consolidation of its recently acquired wholesale lenders American Mortgage Network
• WorldSavings operations will result in layoffs
• Fieldstone announced that it's closing 5 west coast branches including its Arizona operations. Fieldstone Mortgage also has closed their Las Vegas branch.
• Mortgage Lender Network (MLN) "stopped funding residential loans" on 12/29 (they didn't actually say they were closing) but they have closed.
• HMIC closed its doors on Dec 20. As part of a $100 million cost reduction strategy, Sovereign Bancorp its owner exited the wholesale mortgage market.
• Own it Mortgage - closed its doors
• Sebring Mortgage closed its doors
• Axis Mortgage closed its doors
• Oak Street Mortgage closed its doors
• Right Away Mortgage closed its doors
• Secured Funding closed its doors
• Loans 123 - Not taking any more business
• Aegis Funding (sub-prime) closed its doors (Aegis Wholesale (Conforming and Alt-A) and Home Equity are still open) for now.
• Option One (Owned by H&R Block, Owned By HSBC) - Is Up for Sale selling off it's portfolio
• Meritage Sold to Lime Financial
• Mandalay - Closed it Doors
• Southstar - AE's leaving (a good source stating company cannot meet payroll obligations)
• Accredited - OC Regional office production at its lowest levels, rumors they may close by 1st quarter.
• Saxon - Layoffs possible closure.
• RFC - Layoffs
• Decision One closed 6 regional centers. Division of Option One.
• Bank of America Mortgage laid off 225 locally.
• Countrywide Mortgage - Multiple layoffs. In talks with Bank of America about possible merger (CNN). Countrywide has also filed suit against 15 parties alleging that the company may have been tricked into lending as much as $40 million dollars (figures elsewhere say $80 million.) The defendants include eight individuals an appraiser, a property management company, and several mortgage and lending companies. According to The Wall Street Journal, another large lender, Argent Mortgage Company may also have been caught up in the scam. Some of the bad loans also appear to have been acquired by Fannie Mae.
  Argent consolidated and let 1,000 people go. Currently for Sale Ameriquest laid off 3,800 and shut 229 retail branches after announcing a $325 million settlement with state's attorneys general for overcharging borrowers. THEY MAY NOT LAST TILL SPRING.
  Washington Mutual - Continued layoffs. Wholesale reps offer 1 point to REALTORS® for referral of loans. (Cutting the throats of their Broker base! Not good for biz!)
• Encore Credit - closed its doors
• Then there's Silver State Mortgage whose doors were closed just a couple weeks ago.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Do It Yourself

It should come as no surprise that some people consider selling their home on their own. Americans are big do-it-yourselfers. There's even a TV network devoted to do-it-yourself projects. As a culture we're also fascinated with the law. (There's a TV network for that too.) But we know it's almost always a bad idea to represent oneself in a legal proceeding.

To build my case and have a broad impact with unrepresented sellers requires more than lip service. To further strengthen my argument to unrepresented sellers, I use hard data to demonstrate the risk sellers face when foregoing representation. For example, the National Association of Realtor's, 2004 Profile of Homebuyers and Sellers report showed the median sales price for sellers working with a sales person was $189,000 compared with $163,800 (the good old days) for unrepesented sellers. So in addition to exposing themselves to potential liability issues, unrepresented sellers almost always leave money on the table, even after accounting for the seller's agent's commission.

The same report found that the most difficult tasks for unrepresented sellers were "getting the price right" and "preparing/fixing up home for sale" each cited by about a quarter (24 percent) of the unrepresented sellers serveyed. " Understanding and completing paperwork" was cited by 22 percent.

Want more facts. Click the link. http://www.richardrecuset.com/For_Sale_By_Owner/page_1674991.html


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Hurricane Aftermath: Who Pays?

Hurricane season is around the corner. If it invites itself to our neck of the woods and you're under contract, things could get tricky. I'll share some suggestions, and if you have any additional questions feel free to write me.

The real estate industry almost always experiences some setbacks, as hurricanes delay transactions, damage houses under contract and halt new construction.

Who pays for repairs depends on the amount of damage that was caused by the hurricane, as per contract.

Risk of Loss: If any portion of the property is damaged by fire or other casualty before closing and can be restored within 45 days from the closing date to substantially the same condition as it was on effective date, seller will, at seller's expense, restore the property and the closing date will be extended accordingly.

If the restoration cannot be completed in time, buyer may accept the property 'as is' with seller assigning the insurance proceeds for the property to buyer at closing, failing which either party may cancel this contract.

Who pays for repairs?

If the property is damaged by a casualty (hurricane, fire or tornado) before closing, the seller will be obligated to repair the property so that it is essentially the same condition as it was-and has the same features it had on the effective date.

If the seller is able to repair the property in time (45 business days), the buyer will be obligated to close. If not, the buyer may decide to take the property "as is" (with the damage from the hurricane) together with the seller's insurance proceeds and close on the closing date.

Under what circumstances can either party cancel the contract before closing?

Either party may cancel the contract if the repairs cannot be completed within 45 business days from the original closing date stated in the contract and the buyer decides not to take the property with insurance proceeds.

What is the legal definition of risk of loss?

Risk or loss is the liability for loss or damage if it occurs. The risk of damage can pass to the buyer when the contract is signed, or the risk of damage could be placed with the seller rather than the buyer.

***If you're thinking about making a move, the best time to get started is now-before the hurricane season.



For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Real Estate Today

If I could offer one piece of advise to anyone selling a home right now, it would be this: Don't dwell on the past. Let it go.

It's no secret that the real estate market has taken a substantial hit in the last year-and-a-half. But it's not necessarily a bad thing.

It' s more of a normal market now, as opposed to a market that was off the charts in appreciation when the local and national real estate market peaked in the spring of 2005. Sellers can no longer name their price and expect multiple offers with a fast closing. You'd be lucky if you get one offer let alone two.

The market has dipped, but is far from crashing and I don't expect it to. Today, assuming you have put a good effort in marketing the property it would take 60-90 days to sell as opposed to 15-30 days during the hey days of real estate. That trend is supported by the MLS data.

The key to moving a house as soon as possible in this soft market is establishing a reasonable price. Sellers should compare their homes with those similar to theirs that have sold in the last two or three months, not those of one or two years ago.

As an example you can't say Gee, my neighbor sold his house down the street a year ago for one million dollars, I should get 1.3 million for my house now. That won't happen, you're probably going to sell it for $950,000.

The recent drop in the market is not a bad thing, but rather an inevitable turn for a market of inflated values. This is a much more normal market and one that compares well with historical trends. Ten years ago six to nine months was the norm for days on the market. Where not there now. As long as sellers are willing to be reasonable and patient, they will be able to sell their homes.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

The Good News

It's true that home values in S. Florida are widely expected to head south for the next year or two (with the exception of Coral Gables), but that doesn't mean that buying in Miami would be a bad investment. The days of warp speed house flipping may be over, but in the long run Miami real estate is expected to continue appreciating thanks to a shortage of land(remember, we live in a peninsula), population growth and employment gains.

National and international factors also bode well for the area, including historically low mortgage rates and a weak dollar, which makes real estate in the U.S. more attractive for Europeans, especially once south and central American vacation home prices increase. That will push the German and British vacation-home buyers to think about Florida destination as purchase location.

Then there's the X factor. In Miami, we're always one good Latin American crisis away from a housing boom, and the way things are looking (Cuba, Venezuela), that might just happen sooner than later.


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

It's Official

My farewell from wordpress.

After much thought and introspection I’ve decided to move to a new location. Reason being, for me, blogspot seems to be a lot more user friendly than wordpress and typepad. Even-though wordpress seems to have a lot more tools and resources, as well as typepad, I’ve also found it very cumbersome to maneuver.

I sell real estate and that’s where most of my time is allocated. I ‘m not a programmer and have no desire to go through an HTML learning curve. After I spend some more time bloging and learn more about bloging I will then decide what direction to take this endeavor. I don’t see how you can successfully sell real estate and blog, blog, blog. This could be addictive so that’s why I have to focus on selling-a contact sport.

I figure it’s not the bells and whistles (widgets) that makes for a good blog but the content. Content is key. And that will be my focus. A blog that will be informative but entertaining enough that would keep readers reading.

Our goal is to create a community where the best of the best can share ideas in an exciting, fun environment. We will post all comments that support this goal. If you are looking for a venue to be negative, it will not appear in this blog.

So join us on this fun journey by clicking on any of the topics. Visit us daily since there will be new posts at least five days a week with the exception of holidays. If you’re ready to travel in luxury, or just surf on the net, join us for a visit: Coral Gables Real Estate.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-The Recuset Group-Multi-Million Dollar Producer

Divorcing Sale

I recently represented a divorced couple in the sale of their once happy home, the experience was somewhat reminiscent of the 1989 movie “War of the Roses.” I remember-not so fondly- when the husband, who wanted total control of the sale, insisted that only his name should appear on the listing agreement. ” He said he held sole title to the house, which he had purchased before he was married.” The wife balked, explaining that her attorney had attached a rider to the deed before the wedding.

After a title search was completed, the wife learned that her attorney hadn’t dotted all the rider’s i’s or crossed its t’s. Moreover, he hadn’t attached it to the tax records. Still, when the attorney produced evidence of the rider, he secured his client’s stake.
During the negotiations with the buyer I felt the human equivalent of a Ping-Pong ball. The wife would call me thinking she was being ripped off. The Husband would call and say that I was on the buyers side. I was just doing my job, but there was so much spite between them it was very difficult to be on neither side.

Such acrimony often occurs when the family home gets dragged into the tug-of-war over who gets what in a divorce. Many times it’s put up for sale since it represents the greatest financial asset. It’s also often the centerpiece of the couple’s emotional struggle, second only to custody of any children.
Here are just a few important tips towards a smooth transaction when confronted with a divorce situation.
-Check title and deed so you know whose name or names belong on the listing agreement so the sale is legal.

-Don’t try to get the realtor to pull for one side more than the other. A good realtor (marriage counselor)will remain neutral.

-The more cooperation there is, the more likely you will maximize profits. You need to come to an agreement on one agenda. Sell and divide the proceeds; agree that one will buy the other, or share ownership until some future time even though only one may live in the home.

-Get up to speed on tax law changes. Contact your attorney or tax advisor.

-Add contingencies- From a realtors perspective, in order to avoid a “he said, she said” disagreement add a provision in the listing agreement that if an offer is made within a certain percentage of the listing price it must be accepted. (A good realtor will leave nothing to chance.)

-Try not to publisize the reason for the sale. You don’t want the buyers to think is a fire sale.

-Sometimes it helps if you share the load as far as preparing documents and details about the house to prepare for marketing. That way the workload is spread evenly as much as possible.

-Divorce lawyers don’t need to get involved until the actual closing, however, when the sides really can’t agree, call in the attorneys it’l probably get worse before it gets better. Hopefully it’l work out if the buyers are patient enough and in love with the house enough.

-The closing. Do not attend the closing. Today’s technology is such that the parties do not need to attend. Everything could be overnighted or electronically sent.

There it is. Now lets all get along, adjust to new priorities and find happiness in a new home.

Richard Recuset - Multi-Million Dollar Producer-The Recuset Group - 786-287-9272 - email:Richard@RichardRecuset.com

Which one is better?

wordpress or blogger? I'm getting pretty frustrated in trying to decide which blog is the best for me. I started with wordpress(http://www.coralgablesmiamihomes.wordpress.com/) and as I've been posting I've also been trying to add some color to it (bells & whistles.s), but I've found it to be a real pain. The themes are not very user friendly, you can edit some of the items but not many.

And now there is this 2.1 version which has a mile long of writen instruction on how to upload or upgrade. If you can't do it with a click or two forget it, as far as I'm concerned. I've also tried to download new themes, but to no avail.

Blogger on the other hand, seems a lot more user friendly. Easy to upload widgets and things. I don't know if I could ad pages.

Any suggestions (pro's and con's) would be appreciated. Thank you.


Richard Recuset - Multi-Million Dollar Producer-The Recuset Group - 786-287-9272 - email:Richard@RichardRecuset.com

Real Estate Investing

Here are some tips to avoid a possible financial disaster.

Real Estate Cycles-Is the constant. Those who get in on the upswing think it’s for ever. Depending where you invest, appreciation can level off or go negative. In the long run, real estate generally appreciates, but sometimes you need to hang in during the down times. For most of the country, the good times are over.

Patience is a must-When real estate takes a downturn, as we’re seeing in most areas of the country, the number of home sales decline while the time a home is in the market increases. What doesn’t happen right away is a decline in price. In fact, in certain markets (Coral Gables) prices continue to rise. There is a lag between the beginning of a downturn and when prices start to give way. The lag can be between 6-12 months, so hang in there, it will be a buyers market-it is a buyers market, once again.

Research- Take a close look at the competition. How is the rental market? Your tenants rent has to cover your mortgage, plus maintenance and additional costs.
Debt- Keep debt away, especially during a market downturn. A shift in the market can drown you. Sometimes, it’s just better to cut your losses.

Tenants- Hardly ever will take care of your property as if it was your own. Always have a contract with provisions to cover damages.

To this end, contact me at 786-287-9272 or richard@recuset.com for all of your real estate needs!

Home Inspections

Whether you’re purchasing an older home or new construction, I always highly recommend to buyers I work with that they invest in a professional home inspection. If you’re buying a home in Florida and are in need of locating a Florida home inspector, here are a couple of resources that may help in your decision making process:
American Society of Home Inspectors (ASHI) - Florida Home Inspectors
ASHI has a code of ethics and standards of practice but be sure to read their membership categories and requirements. Also, check out their frequently asked questions on home inspections and view a virtual home inspection while you’re on their site.

National Association of Home Inspectors (NAHI) - Florida Home Inspectors
NAHI also has a code of ethics (.pdf), standards of practice (.pdf) and different levels of membership. While on their site, check out their resource library and articles for home buyers and home sellers.

Though some home inspectors or home inspection companies do not belong to either of these companies, some buyers find the information on these sites helpful. If you’ve received a referral of a home inspector or company that is not listed in either of these sites it does not necessarily mean that they are not professional or qualified. Membership to either of the associations listed above is voluntary.

Foreclosure is not the only way

I have a friend of a friend who just wants to walk away from his investment. Waited to long to do anything about it and now is running out of options. Many people have made their fortune through foreclosure sales. And the numbers are rising at this time.But foreclosure is only one of several ways homeowners or investors can lose property. Here are six different ways to lose your home.

• Behind in Mortgage Payments. Generally, quit paying your mortgage and you’ll end up getting past due notices, followed by foreclosure proceedings notices and then a visit from the sheriff’s office to help you remove all your property from the household. The increase in foreclosures comes as no surprise. An increase in delinquencies is due to a number of factors: the seasoning of the loan portfolio, the increased shares of the portfolio that are ARMs and sub-prime mortgages, as well as the elevated level of energy prices, rising interest rates, rising property taxes and insurance rates.

• The taxman cometh. For homeowners who pay their own taxes — that is, they are not paid through a mortgage service provider — a tax sale could be in their future if they fail to pay taxes on the property. Although most tax sales are through local governments, state and federal revenue agencies can confiscate real estate for not paying taxes. If this happens, it’s not as simple as just paying the back taxes and getting your property back. For some, it includes also paying penalties and interest. It can amount to a lot of money.

• Bankruptcy. Bankruptcy laws have changed. In the past, filing bankruptcy usually gave the homeowner some protection from losing his home to creditors. With the revamped bankruptcy laws passed in 2005, creditors might now have the upper hand now. New law allows for 180 days for the consumer to work out payment plans with the creditor, it does not stop the foreclosure process, which could be a shorter period of time than the payment workout plan.

• Fail to pay other debts besides mortgage. Unless you live in Florida and have a home exemption, creditors can come after you, they are in business for one thing — to make money. Consumers pay interest and fees when they borrow. If the consumer fails to pay off those loans, creditors can go after assets to satisfy the debts. Your house could be one of those assets.

• Fail to pay homeowners’ association fees.If you get into an argument with your homeowners’ association (HOA), withholding the homeowners’ fees paid each month should not be one of your strategies. HOAs can also auction your house to satisfy past-due HOA fees.

• Take part in illegal activity. The American Civil Liberties Union contends that 80 percent of homeowners who have had property forfeited by the federal, state or local government have never been convicted of a crime. To seize property for illicit activity, law enforcement officials only need to have probable cause that the homeowner either used the property in committing a crime or purchased the house through illegally obtained funds.

If you are feeling the pressure of not being able to hold on to your investment, one thing you should’nt do is bury your head in sand. Focus on your options and take action. You can check out more information through my website http://www.richardrecuset.com/ or Call or email me for further consultation.

Rental Insured Citizens

You may wind up paying a significant amount of any shortfall caused by a future hurricane. In 2005 the Legislature created two types of properties insured by citizens-a “Homestead” category that includes renters with lease agreements (unlike the familiar Homestead Exemption), and a non-homestead category that covers second homes and month-to-month renters.

Meaning simply, if Citizens suffer a shortfall after another hurricane, the non-homestead owners would be levied first.
If that’s not enough, both the homestead and non-homestead owners would be levied gain.
And if there were still a shortfall, all policyholders throuhout the state would then be levied.
If you own a rental property and have tenants without a lease, you could potentially be levied 90% of your premium amount. If there is a lease in place, the potential levy is only 60%. So, it may make sense to keep your tenants on a long-term agreement.

Your Square foot Condo

In light of the current market slow down, more condominium owners are suing developers for not getting the square footage for which they originally paid. As an owner you want to get the most value for your money. When a condo buyer signs a contract with a developer, a Declaration of Condominium clearly defines the unit’s square footage. State law mandates that the developer also disclose the unit’s dimensions in blueprints and sales brochures, which are attached to the final contract.

A developer can rely on an alternate calculation, but the source must be disclosed. This is where most of the law suits are steming from. People think they are getting 2,550 square feet, then it turns out to be 2,400 square feet, or even less.

If the owner discovers a discrepancy between the listed dimensions and the actual square footage of the unit, the owner has up to one year after closing to file a suit for false and misleading publication of information.

A discrepancy in one unit probably means other units are askew. In situations where many units do not have the promised square footage, condo associations can file class action lawsuits on behalf of the affected owners.

Another issue that arises during these disputes is how the developer went around measuring the unit. The measurements are typically made from “paint to paint” or from the beginning of the interior surface to the base of the opposite wall.

The state Department of Business and Professional Regulations enforces the disclosure of unit square footage by developers in contract documents. To satisfy the department, the developer must be consistent in that disclosure.

As a result of the amount of ensuing suits, independent companies are now soliciting condo owners to measure their units. These companies have contingency fees-it behooves them to find a mistake when measuring units.

HOA Reserve Funds

Q:My client recently asked me about the HOA reserve funds for her complex. How much money should it contain.
A: Every couple of years, a reserve study should be made to determin the amount needed. For instance-take the total of the repairs or replacements that wood be needed in future years less the amount now in the reserve account.
Determine the usefull life of the assets in years to determin the amount you need to collect each year. Never use a percentage or total amount and just plug in the figure to the bufget.

Market Round Up

This just in. Enjoy!
ORLANDO, Fla.–(BUSINESS WIRE)–A new report released today by Attorneys’ Title Insurance Fund and posted on www.fundhomeinfo.com, finds that Florida’s housing markets slowed in 2006 in nearly every geographic region. The report also shows that Florida’s economy has downshifted from a period of spectacular growth to merely strong growth and will continue through 2007 and into the first half of 2008 before giving way to more robust growth.

The Real Estate Index Forecast, commissioned by Florida-based Attorneys’ Title Insurance Fund’s Consumer Education Campaign, was created by economist Hank Fishkind of Fishkind & Associates, Inc., using The Fund’s extensive online system of deed data for more than 30 Florida counties. The report provides a snapshot of the national economic outlook and county-specific forecasts for 2007 through 2009.
“As the 2007 Real Estate Index Forecast report indicates, Florida’s housing markets bottomed out in 2006 across most of the state,” stated Fishkind. “However, the shape of the bottom varies widely across Florida’s metropolitan areas based on variations in the degree of speculative overbuilding that has occurred, the pace of household formation, and the changes in pricing.”

The Fund’s 2007 Real Estate Forecast also shows that Orlando is the strongest residential real estate market in the state because of its strong household formations, driven by robust gains in employment and its relatively low levels of speculative housing inventory. Conversely, Fort Myers and Miami are the weakest residential real estate markets in the state because of their large speculative housing inventories compared to somewhat lower trends in household information.

ABOUT THE FUND REAL ESTATE INDEX
Recognizing the need for real estate data to help consumers make informed home-buying and selling decisions, and to help real estate professionals provide sound counsel to their clients, The Fund collaborated with Dr. Hank Fishkind to leverage its extensive online system of deed data for Florida counties to develop a Real Estate Index. Fishkind provides independent analysis of data provided by The Fund.

Measuring sales value and volume for single-family homes, condos and time shares throughout the state, The Fund Real Estate Index illustrates the dynamic real estate fluctuations on a county-specific basis. The reports are posted on local Real Estate Council Web sites and are updated monthly.
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Well, see, the number of unsold homes overal is 23 percent higher than a year ago and current sales levels are down over 13 percent from the mid-2005 peak in prices. Prior to a brief October rebound, sales volume had declined for seven consecutive months and 11 of the last 12 months going back to September of 2005.

Despite the negative trends, median home prices have only declined modestly. My instincts are telling me that more of a correction in home prices is still warranted; I’ve certainly noticed some homes sitting on the market for several months in my area. I don’t think the bottom is in yet.
Is this just hype or is there really a chance that home prices will crash-land sometime in 2007? Give us your thoughts.