April 1, 2007
«AddressBlock»
RE: Monthly Letter
Dear «GreetingLine»
The ancient Greeks taught that all communications involved three ingredients: Ethos, or the character of the speaker; Pathos, or connecting with the emotions; and Logos, which is the factual content of the message. For any of you who read our Gold Report (www.cdccommercial.com ) you will of course know that we try to incorporate all three of these methods in our selling and way of doing business. Ultimately, we like to call it “Relationship”.
Speaking of the Gold Report, I was very excited that the San Diego Daily Transcript picked it up and wrote a whole story based around it (www.cdccommercial.com/RetailStrong )
I am also pleased to announce I have joined the “hip” crowd and now have my own BLOG (www.cdccommercial.com/myblog ). You can view it on the website and you can even add your own comments or opinions. If you want updates emailed to you when they come out, you can subscribe on the blog page beneath any of the posts (my goal is to update three times a month on a timely subject). Browse the posts and see what you think (It is a single subject mini of my monthly letter.).
As I continue to move CDC Commercial more and more digital, the world seems to accelerate right on up to me. Or as my mom would say, “The hurrier I go, the behinder I get”. I read recently that, “The economic food chain is fast becoming wired”. A couple of tools I’d suggest if you haven’t already – try two monitors (I heard Bill Gates uses 3) – wow, talk about more real estate to work with! Second, download Google Desktop and try out some Google Gadgets. The desktop allows you to search all your hard drive and email just like a Google internet search (plus you don’t have to buy Vista to do the same thing!). Lastly, buy PaperPort by Nuance. It allows you to PDF, sort, organize, scan and fax all of your documents.
Ok, back to real estate. Did you know California law requires all new and replacement water heaters to be braced and anchored? When you sell you have to certify compliance so you might want to just take care of it now.
So the days of buy, paint and sell may be past us. I believe we have returned to a “normal” market. This is a time when true professionals thrive and take market share from those who were just order takers.
Why is this becoming a buying opportunity?
1. Bubble trouble has diminished.
2. Bidding wars are over.
3. Real estate is an investment you live with. It is an investment that builds equity while you benefit from tax breaks.
4. The Fed is taking a breather. Rates will remain stable while the Fed micro manages regulation (such as sub prime lending).
5. Lenders want business – we are awash in capital and liquidity. Never been a better time to borrow.
6. Rehab and re-rent – with replacement cost high, renovation makes sense. Low vacancy allows room for much higher rents.
7. A little more product coming on the market. Some highly leveraged owners starting to feel pressure.
8. Get in the game. If you don’t join, you can’t play. It’s a long term investment. The longer you’re in, the better you’ll do.
As always we look forward to a long and mutually prosperous relationship. We hope you enjoy the April 1st moral to the attached story.
Regards,
Don Zech
CDC Commercial
Real Estate Services
The Donkey Story
One day a farmer’s donkey fell down into a well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally he decided the animal was old, and the well needed to be covered up anyway; it just wasn’t worth it to retrieve the donkey. He invited all his neighbors to come over and help him. They each grabbed a shovel and began to shovel dirt into the well.
At first, the donkey realized what was happening and cried horribly. Then, to everyone’s amazement, he quieted down. A few shovel loads later, the farmer looked down the well, and was astonished at what he saw.
As every shovel of dirt hit his back, the donkey did something amazing. He would shake it off and take a step up. As the farmer’s neighbors continued to shovel dirt on top of the animal, he would shake it off and take a step up. Pretty soon, everyone was amazed, as the donkey stepped up over the edge of the well and trotted off.
The Moral:
Life is going to shovel dirt on you; all kinds of dirt. The trick to getting out of the well is to shake it off and take a step up. Each of our troubles is a stepping stone. We can get out of the deepest wells just by not stopping, never giving up! Shake it off and take a step up!
Remember the five simple rules to be happy:
1. Free your heart from hatred.
2. Free your mind from worries.
3. Live simply
4. Give more.
5. Expect less.
O.K., that’s enough of that B.S. … The donkey later came back, caught the farmer out in the field and kicked the #@*# out of him. Then he went over to each of his neighbors farms and kicked the #@*# out of them too for helping.
The REAL Moral:
When you try to cover your ass, it always comes back to get you.
