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Intero Insider: Why We Love Our Homes

By Gino Blefari | August 9th, 2011 0 Comments

I caught a recent episode of “Louie” on FX. It’s the humor series based on the stand-up comedy of Louis C.K. This show is often funny – painfully funny. And sometimes it’s just painful because the observations are pretty dead on, unapologetic and completely honest.

In this particular episode, Louie decides he’s ready to move from the apartment he once lived in with his ex-wife. He goes out looking for suitable rental properties in New York City for himself and his girls, who live with him part-time. Of course, after several trips through some bad places and a few bait-and-switch ads, he becomes exhausted – until he stumbles upon a townhouse for sale.

This is where the show goes from realistic to hyperbolic. The scene reminds me of what it might look like to take the collective conscience of America during the 10-year run-up in housing prices and play it out in front of an audience. See, it wasn’t just any townhouse; it was a $17 million townhouse. And Louie of course, while famous, is not exactly part of the crowd that can afford to buy such a place.

Louie then becomes determined to buy this place. He is consumed by the idea that this house will make his girls happy, and make everything fall into place in his miserable life. Never mind the fact that he only has $7,000 in the bank. Never mind the fact that that $7,000 isn’t even one-tenth of one monthly mortgage payment. He wants the house.

But, why?

I believe it’s because homes are more than the walls they’re made of – more than the investment of many years of hard work. Real estate isn’t just a market; it’s a state of mind. Homes are deeply connected to the life we live. This is why all buyers will “imagine” themselves living in a particular home when they go to see it, and why they try to think about what life would be like within those walls. This is why it was so easy to get in over your head during the days of loose lending. This is why foreclosure is so emotionally draining.

A home is a future, a present and a past. It’s a living thing. It’s where we feel attached to life, where we dream and where we plan for what’s next.

As for Louie – his show isn’t the type to slap on a happy ending. He didn’t buy the house. He merely told the real estate agent that he would buy that house, and instead went back home and repainted his apartment with his daughters. He already had it.

That episode for me said something really profound about where we live – the places we call home. The connection and what’s inside are the most important aspects of any real estate deal.

Intero Appoints Larry Klapow as Vice President and Managing Officer of Intero San Mateo

By Teressa Francis | August 9th, 2011 0 Comments

Former President of Coldwell Banker’s San Francisco Region joins Intero

CUPERTINO, SILICON VALLEY – August 9, 2011 – Intero Real Estate Services, Inc. announced Larry Klapow as Vice President and Managing Officer of Intero San Mateo.

Over the course of a 19-year career involving Bay Area real estate, Klapow has earned a reputation as a peer, mentor, friend and coach. As a former President of Coldwell Banker’s Residential Brokerage San Francisco Bay Area Region, he was responsible for the development of the company and oversaw 32 offices and a talented team of up to 2,200 real estate professionals.

The last few years Larry has been assisting business owners in growing their companies, training sales staff and coaching and mentoring agents in growing their businesses. He has an expertise in recruiting, building relationships, and developing talents, while establishing accountability. Klapow is extremely effective in challenging environments and economic crises. His accomplishments include the ability to drive positive change, strengthen organizations, enhance productivity and improve financial results.

Prior to being named President in early 2007, Larry was the Senior Vice President and Regional Manager of Coldwell Banker Residential Brokerage’s San Francisco-Peninsula region and before that he was the Senior Vice President of the Santa Clara County region from 2001-2007.

“We are really excited to have Larry on our team because he has vast knowledge on how real estate works and his ability to lead strategic programs and create reliable processes will be a huge benefit for Intero,” said Gino Blefari, President and CEO of Intero Real Estate Services.

“It is very typical for an executive to interview with many companies to look for the best deal; however I chose to interview with Intero only,” says Klapow. “Intero’s philosophy and values are right in line with my way of thinking.”

Klapow has more than a decade of experience in real estate, finance, technology, and entertainment, developing the strategies that support and achieve business objectives. Through creative campaigns, sharp business decisions, and clear-sighted ability to envision and land new opportunities, Larry motivates people to accomplish goals.

“Finding a great manager to run an office is always a challenge. Why we are so excited about the addition of Larry Klapow to our team is because Larry is not only a manager but an incredible leader, “explains Executive Vice President of Intero Real Estate Services, John Thompson. “His leadership just raised the bar in San Mateo and our entire executive management team due to his experience, wisdom and knowledge of the real estate industry and markets.”

Intero Insider: Foreclosures Coming to a TV Near You

By Gino Blefari | August 2nd, 2011 0 Comments

Dating, singing, dancing, physical challenges, trivia – these are all standard components of a typical reality show (well, the kind without housewives, anyway). And now we can add foreclosure investing to the mix.

Just as the housing boom gave rise to house flipping shows, the housing fall is now giving rise to home foreclosure shows. The Wall Street Journal reports that this summer and fall, several TV networks will premier reality shows about buying foreclosed homes. This was a bit unsurprising to hear – an obvious next step for TV.

While last week’s foreclosure report from RealtyTrac showed that foreclosures decreased in 84% of markets across the U.S. in the first half of the year, there’s still a glut of foreclosed homes out there to buy. This is the year of the real estate investor, and where there’s money to be made, there is TV to be made.

Will TV glamorize foreclosure investing, making it look easier than it is? Or will we witness the realistic blood, sweat and tears that go along with the territory (much like we saw in the house-flipping shows)? I’m guessing the latter. Anyone who’s ever gotten involved in real foreclosure investing knows it’s not the “get rich quick” scheme it’s made out to be on late-night infomercials. There’s real risk involved, solid know-how, and you do need cash – despite the no-money-down proponents.

I think it will be interesting to watch, though. We all know that every real estate deal comes with its own set of problems and solutions. This market presents plenty of opportunities, but that doesn’t guarantee success.

Here are the shows, the WSJ mentions will premiere soon:

Spike TV’s got a new show called “Flip Men” coming in September. It’s about a duo in Salt Lake City trying to make a profit in foreclosures.
Bravo’s reality show, “Flipping Out,” starring Jeff Lewis starts its fifth season later this summer. Apparently, Lewis wrangles with lenders in a quest to buy a foreclosed house to live in.
DIY Network has a show in development about flipping foreclosed houses that’s expected to air in 2012.
A&E Television Networks reportedly tapped a former “Survivor” contestant to star in a new show later this year about flipping houses.

Tune in and see how this blood sport unfolds. Reality, sugar-coated or just plain fantasy?

Intero Insider: What We Can Learn from the Man Who Bought a Home for $16

By Gino Blefari | July 26th, 2011 0 Comments

Have you seen the recent news story in which a man purchased a $330,000 home in Texas for $16? No, that’s not a typo – he “bought” a perfectly nice house for sixteen bucks. And it’s a true story, not fiction. What is going on here?

Here’s what happened: Like many nice neighborhoods across America, Flower Mound, Texas, experienced home foreclosures in recent years. And because of a tumultuous couple of years in the lending industry, the mortgage company that owned this particular house in Flower Mound meanwhile went out of business.

Kenneth Robinson somehow caught wind of this, and moved into the house in June. According to the story, he simply went to the Denton County Courthouse and filled out a form. Due to a Texas law called “adverse possession,” he was granted rights to the house for a $16 administration fee. Now, that’s a deal!

This isn’t just an interesting story, though. I wanted to discuss here because it’s a perfect example of the “silver lining” or “diamond in the rough” kind of markets we’re seeing right now – to the point where logic can’t always describe it. Foreclosure investing is a tough and risky business that can pay off big when done right.

While the average person can’t really expect the stars to align quite like they did for Mr. Robinson, there are ways to really take advantage of the opportunity that’s out there right now. What can we learn from Robinson?

Know your market
Mr. Robinson’s edge seems to have been his keen eye for what was happening in the neighborhood. He realized this home was abandoned and he discovered it was owned by a bank that was no longer in business.

Be persistent
Robinson’s other big strength was that he persisted in researching the laws around taking possession of a property. He could’ve just figured “why bother?” when there was no owner to buy it from. But instead, he dug and he acted on the knowledge he gained.

As an investor, I’d caution not to delude yourself into thinking you’ll stumble across a similar situation any time soon. But take the lessons to heart and realize that sometimes it really is all about knowing how and when to act on that big opportunity when it lands at your feet. Persistence outscores luck any day of the week.

Interesting times indeed! Check out the full details of Robinson’s story here.

Intero and Western Bancorp voted the Best Real Estate and Mortgage Company in the Silicon Valley

By Teressa Francis | July 13th, 2011 0 Comments

The results are in and Intero Real Estate Services, Inc. and WesternBancorp were voted the Best Real Estate Company and Best Mortgage Company in Silicon Valley in the 2011 San Jose Mercury News Reader’s Choice Awards.

For Intero this marks our second time we’ve been honored with award. Thank you for voting we appreciate your votes – and your trust.

Intero Insider: Free Money for Underwater Homeowners

By Gino Blefari | July 12th, 2011 0 Comments

More help is out right now from the federal government for a small portion of the millions of homeowners who have fallen behind on mortgage payments. What is it this time? In a nutshell, free money. But struggling homeowners need to act fast as they’re only accepting applications until July 22.

The Emergency Homeowners Loan program is a $1 billion program that offers loans up to $50,000 to homeowners who have lost their jobs. The kicker? For those who qualify, the loans don’t have to be repaid.

How it works:

The program – operated by the Department of Housing and Urban Development and the nonprofit housing group NeighborWorks America – is making loans with better terms than anything a local bank can offer. The loans are interest-free, and payments go directly to the lender to cover a portion of a borrower’s monthly mortgage.

Borrowers can get assistance for up to two years. Once assistance ends, 20% of the loan is forgiven with each passing year. So qualified borrowers who stay in their homes for at least five years after the assistance period don’t have to pay this money back – as long as they don’t fall behind on their mortgage again.

What’s the big catch? We know there’s always one that seems to derail the intent of these programs to help millions of homeowners out of bad situations.

Well, for one thing, if borrowers decide to sell their home before the entire loan is forgiven, they’ll have to pay the remaining amount back. Some say that this potentially creates an even worse situation for these borrowers as they’re further in debt than they were before taking the loan.

Also, if borrowers fall behind on their mortgage payments and either sell or refinance, they’ll also have to pay back the remainder of the loan. Because of this, some critics have already said that taking these loans may actually put some homeowners more in debt and make their situations worse.

Another catch? HUD says these loans will only be made available to 30,000 people. That’s a pretty small portion of the millions who face foreclosure due to missed mortgage payments. To be eligible, a borrower needs to have experienced income loss from either losing a job, a medical condition or some other economic problem. Details are available at this link: http://ehlp.nw.org/.

If you or someone you know is facing foreclosure, it’s worth checking out whether you can get assistance from this program. But, first make sure you have a long-term plan for staying in your home.

Intero Real Estate Services Appoints Charmaine Wang to Director of Sales & Marketing, APAC of Intero Hong Kong

By Teressa Francis | July 7th, 2011 0 Comments

Wang will help attract investors from China and across the Pacific region to U.S. properties

Cupertino, California – (July 7, 2011) – Intero Real Estate Services, Inc. has appointed Charmaine Wang to Director of Sales and Marketing, APAC of Intero Hong Kong.

Under the leadership of John Thompson, Executive Vice President & Managing Officer of Intero Hong Kong, Charmaine Wang will bring investors from China and across the Pacific region to U.S. properties.

In addition to her success as a top 5% agent with Intero, Charmaine Wang had a successful career in sales and marketing in various Silicon Valley companies. Ms. Wang was born and raised in Shanghai. She received her BSEE and MBA from Santa Clara University.

After joining Intero, Charmaine serviced Bay Area clients as well as many investors from China with the highest standard. Her deep understanding of Chinese culture and extensive hands-on U.S. real estate practice makes her a welcome figure in representing China investors.

The continued growth of Asia’s economies, high asset prices, particularly in real estate, and rising currencies relative to the US dollar, have made Asians significant buyers of US real estate. According to The 2011 NAR Profile of International Home Buying Activity, the international market for U.S. residential property approaches $82 billion on an annual basis, of which more than $7 billion comes directly from China.

The Intero brand’s strength in the US, particularly in California, where many Asians choose to buy given its geographical proximity to Asia, established Chinese community, favorable climate, and economic, educational and work opportunities, make it the ideal partner to provide quality real estate investment opportunities to China investors.

“Intero was born in Silicon Valley, which is a crossroads of innovation for the entire Pacific Rim,” said Executive Vice President & Managing Officer of Intero Hong Kong John Thompson. “This transition is a natural move for us and one we are uniquely equipped to execute successfully.”

Commercial Real Estate Market Insight with Steve Becerra

By Teressa Francis | July 7th, 2011 0 Comments

This Intero Insider-Video Series brings you Steve Becerra, one of the top real estate agents at Intero Real Estate Services from the Saratoga office. Steve has been in the business for over 20 years and is an expert on the commercial real estate market, owning his own brokerage business for 10 years. Steve speaks with Intero COO Tom Tognoli and shares his knowledge about the current condition of the commercial market both locally and globally as well as giving us his insight about what to expect in the future.

Intero Insider: Are Falling Home Prices Saving Marriages?

By Gino Blefari | July 5th, 2011 0 Comments

You’ll often hear people in the real estate business talk about how most home sales are triggered by life events: marriage, divorce, babies, job relocation. These are the standard igniters. But how do situations change when the housing market is slow?

In a situation like divorce, the general truth is that economic hardship and financial stress tend to be a chief cause. So you’d think that during the recession and housing slowdown that divorce is on the rise. But you’d be wrong.

I stumbled across a discussion of a new economics paper last week that finds the opposite – that economic turmoil today is keeping couples together, and that low house prices are the reason. Although it may seem like low house prices would enable couples to break up and buy on their own more easily than when the market is hot and prices are high, it seems that couples instead would rather stay in their unhappy marriages than sell their homes at a loss.

For those couples whose home values may have fallen below their mortgages, selling may not be an option if the bank won’t approve a short sale. But, even if that’s not the case, the research notes what economists call “loss aversion,” an emotional barrier to selling at a loss. It seems we humans for the most part can’t get over that.

Just how much did the recession and drop in house prices pull down the divorce rate? The research found that a 10% decrease in home prices pulled down the divorce rate of college-educated households from 11.6% to 8.22%.

What exactly does this mean? Well, it’s interesting data to understand when examining the dynamics of the housing market, what affects it and how it affects other parts of the economy and everyday life. For some couples, who knows – maybe the extra years they spend together because of avoiding a loss on their home sale will actually help them reconcile. Or, maybe it makes it worse.

I think a big takeaway from this is that it shows the emotional component of the housing market that can’t always be predicted. Data and forecasts are great; they’re helpful to understanding the various factors and impact of economic events. But, sometimes in housing there is good old human emotion that comes in and throws all the data and forecasts for a loop.

If you’re interested in learning more about this research, check out “House Prices and Marital Stability,” by Martin Farnham, Lucie Schmidt and Purvi Sevak, which appeared in the American Economic Review, Vol. 101(3)

Intero Folsom Lake Grand Opening

By Teressa Francis | June 29th, 2011 0 Comments

As a follow up to last week’s post on Intero Folsom Lake Grand Opening Celebration, we would like to share the event’s success with you! Check out the photos for a glimpse of the celebration!