Wed, 29 August 2007  It’s easy to be judgmental in a free market…
I have been a real estate broker in Charlotte NC for over two decades now. Previously I have worked in the media: newspaper, radio and television. My years there were many and the number of women working in the media was few. That experience was my education in the real world. In those arenas, I was privileged to observe people at their best and at their worst. And I had the chance to test my own beliefs, my own principles and my own frailness. My human traits, qualities, shadows.
And now real estate and it’s a similar story every day. Sometimes the issues are small and manageable, sometimes almost funny. But the big issues shake me still. Asbestos is a big issue and scary when it was first new to us…buried oil tanks are less of an issue…synthetic stucco is still with us…masonite is still with us…polybutylene pipe fittings…and on and on. Then there’s surveys, title insurance, home inspections and home inspectors, attorneys…each with their own baggage…and as brokers we carry our own baggage as well…including the label of Realtor which is a whole other story in my book…and then, of course, there is the mortgage business.
Subprime lending. I suspect there are strata we will never know. How deep the well goes and whose hands are in whose pockets…we will not know the entire truth. But I wonder about the people who were excited to be getting in a home of their own after or during experiencing credit problems…and about the originators and underwriters who helped make that happen…and about some of the builders who grasped that niche and built more and more houses…and not all of them well. Because some of the new home owners did not have a clue about the importance of their sub prime loan, some did, but failed again to meet their credit responsibility. And some mortgage lenders saw that niche and crafted scenarios with 100% down loans as well…and who represented the buyers along the way? Who explained the worst case scenarios, and maybe to some even said “Wait�. And the rest of us who looked at the huge gains in home ownership and wondered how was this possible? Some of us looked at these great numbers of new homes and some of us questioned some of the shoddy construction. And the loud crash recently wasn’t really a surprise. Our neck of the woods (NC) was experiencing record foreclosures. Investors were buying property sight unseen in hot markets. I am sure there is a story for each person in distress. Perhaps in uncovering those participants who are not in distress might reveal the real culprits.
And let me hasten to add, that I do not believe all the victims are without responsibility. I have seen buy-downs before and adjustable rate mortgages that were ill-fit to the new home owner…it is a mess. And now I read where conditions for obtaining a mortgage are back to normal. What does that say? And further, that there is a bulging inventory of new homes and I wonder if over building has anything to do with that report.
I believe we will learn more and more about the crafting of this mess…and perhaps less and less about the real players.
One thing is very apparent, the root is still money.
Comments? Please let us hear from you. Questions? We're available. And thanks for tuning in.
Direct download: subprime.mp3 Category: podcasts -- posted at: 6:57 AM |
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Mon, 27 August 2007 Condominium Home Owners Dues
The saying "there ain't no such thing as a free lunch" refers to this custom in a back-handed way, meaning that free things often have hidden costs. ...
The phrase refers to the once-common tradition of saloons in the United States providing a "free" lunch to patrons, who were required to buy at least one drink.
This is Lynnsy Logue, The Real Estate Lady and Condo CanDo, Charlotte NC
Twice this week I have heard stories about condominium home owners dues.
Maybe it is because condominium ownership is complex. After all, it is just air space. And condominium ownership is just a percentage. And the Rules and Regulations and the By-Laws and all the documents governing a project can be daunting. And financial statements and budgets for water and bills for taxes of the common area…and the number of dogs or cats…and on and on…I mean after all, you just want a place to hang your hat,
keep your stuff so you can get to the beach or the mountains on the weekends or be able to enjoy uptown and all the razzle-dazzle…or maybe because you just don’t want to have to worry about anything except paying the mortgage and the monthly dues. Let someone else worry. Right?
Please ask questions. What are the actual expenses? Line by line? How much is being set aside for maintenance as well as for the repair or replacement of the big items? In both cases, for the first year of each complex, the home owners were given a low figure for monthly expenses. Of course, new home buyers thought this was a great price, wow! condo living was going to be great, until the project was turned over to the home owners…and the expenses were actually triple because the builder or the developer or the firm that handled the conversion either paid the difference for the first year or only paid a minimum with no funds for maintenance.
One complex had to come together, dig deep and climb out of a negative balance. And then they had to pay extra to take care of their condominium home. Several years later, they are getting on their feet. But meanwhile, the complex suffered, the values dipped and home owners were frustrated, mad and financially injured. With no recourse.
Some of the best complexes I know are self-managed and so are some of the worst.
Ask questions. Make sure you get a recent financial statement.
There is a form now that speaks to the Home Owners Association and what the dues cover, if there are any opening lawsuits and if there are any pending assessments.
Ask questions.
And, oh, by the way...you can make your offer contingent on the seller providing the answers...and then, my friend, make sure you verify everything yourself.
Direct download: not_free_lunch.mp3 Category: podcasts -- posted at: 10:29 AM |
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Sun, 26 August 2007 August 23, 2007
For the want of a nail, the shoe was lost; for the want of a shoe the horse was lost; and for the want of a horse the rider was lost, being overtaken and slain by the enemy, all for the want of care about a horseshoe nail." - -- Benjamin Franklin
This is Lynnsy Logue, The Real Estate Lady and Condo CanDo, Charlotte NC
Over the twenty some years I have been a real estate broker in Charlotte, I have been in almost every condominium and townhome complex in Charlotte-Mecklenburg. When I built the first database, I spent hours and hours at the Register of Deeds searching for all the complexes, days and weeks going to each complex, taking pictures (before digital cameras evolved), noting heat source, parking areas, construction and amenities. Today, I have a snapshot of over 700 complexes in my head. You have probably correctly surmised that I am passionate about the sector of our energetic marketplace. It is a challenge for even me to keep up with the proposed projects, the under construction projects, the announced projects, and the inactive projects…and that is part of the fascination I have with Charlotte Condominiums.
But this week, I witnessed something I have never seen before. And while I was not surprised, I was. A small condo building that was new some 20 years ago is undergoing incredible repair. First of all, it was, in my opinion, of marginal quality both in materials and workmanship. Secondly, because it is small, the owners elected to manage the property themselves. And for a myriad of reasons, the maintenance was lacking until more serious issues surfaced. For lack of caulking, painting and proper flashing, deterioration of the wooden structure grew quickly. At that point the owners decided to get bids for siding figuring that would solve their problems. They felt they would not have to paint again and that would put that maintenance issue to rest. But what followed led them to attorneys and lawsuits. Now a couple of years later, the replacement siding and the old are being removed, much of the infrastructure is being replaced: studs and headers. Supports for decks which were never according to code from the get-go are being constructed. New insulation or mostly new is being installed, new flashing where there was none and finally new siding. This time the windows will be wrapped and proper caulking standards will be followed.
I have been on site twice and was allowed to take pictures for my journal. The General Contractor on the job now was kind enough to show me the whole process. This is a perfect lesson in Condominium Care.
First, the condominium homes must be well built with good materials. Second, the units must be well maintained…inside and out. Hallways and byways. Landscaping and parking areas. Everything.
Condominium construction should be done as though the builder were building the units for his/her own family. Condominium ownership does not excuse the homeowner from caring.
I was sad to see the extent of the damage and the neglect, but not surprised.
Direct download: For_Want_of_A_Nail.mp3 Category: podcasts -- posted at: 10:59 PM |
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Thu, 16 August 2007  August 16, 2007
Charlotte Condos As Investments. No Crystal Ball.
Late last night after I checked my day’s work and tucked the big dogs in bed, I sat and surfed. It is amazing what sites come up at midnight and are hard to find the next day. But it’s interesting. Before surfing, I thought I would tackle M and M’s as my next subjects: Mortgages and Management Companies. Instead I cringed when I came across a website that spoke to Uptown.
In essence, this person was hawkin’ “Come On Down�…referring to Uptown Charlotte.
First, the North Carolina Real Estate Commission frowns on our using our crystal balls. And our own good sense might well do the same. The one thing I know for sure, the only thing I know for sure, is that I cannot predict appreciation. I can speak to my perception of the marketplace. Period.
So when I read about the number of sales and the prices and the towers and on and on…
and how this is the place for investors because of the promise of appreciation and substantial gain, I say “Whoa�.
I talk with other brokers and some of us are being very cautious for our clients…some of us are suggesting condominiums outside the Uptown Loop…because some of us think the preponderance of small, most often one bedroom condominiums are headed for a definite unknown future. If there were a way we could parse the purchasers so we could know how many investors were involved with a project, we might have a more clear picture…and some might say, well, there is a cap on investors. Perhaps, but is there a cap on “second homes�?
In SouthPark, there is a handsome new project where today there are 40 units for sale. That conservatively is about 20% of the project. Certainly, that project will change as other retail and businesses come aboard, but what if that were your primary residence?
In some states, there are laws that prohibit rentals in some multi-family projects…rentals may occur only in dire circumstances. I can only hope that our legislature would take a look at that concept for North Carolina.
Back to Uptown. I have a friend who was asked to do a feasibility study for one of the towers. Their answer was, “No�. And then asked why, their answer was “ because I don’t think it is feasible�. Consider that in this market the same folks who often do the feasibility studies for the developers are also the spokesperson to the media. So who do you believe?
I am a cautious person. I believe you should be able to get out of whatever you get into…with relative ease and minimal heartache. The normal angst precludes not being able to get a mortgage on your place because there are too many investors. Not being able to get out financially because you are competing with not only new construction but also other, lots of others, in the same marketplace. How many one bedroom condominiums can our Uptown accommodate? Today? In the next 5-7 years.
Then let’s think logically…Charlotte is still growing. There is land close to uptown, close enough to build more towers, more mixed use and still have access to the city. Hmmm.
Would I rather be able to walk my dog in the neighborhood park, actually have a grocery closer by, have more than 550-750 square feet, be able to hop to the Y as well as the night life and pay less than $300 a sq ft.? Hello!
Of course, there are folks who do use the Uptown condominiums as their city pad…some folks do use them as a second home. I am speaking to the general population for whom this is their primary residence, their biggest investment. Single folks just starting out, young marrieds enjoying the street scene, the night life and the glitz.
Charlotte is a great little city…growing, energetic, vibrant. The streets are sometimes paved with good intention, the air is less than pure, the people represent both the best and the worst and the mantra or at least, my mantra is always, “Caution, caution�. Even as a real estate broker specializing in condominiums.
Direct download: Uptownchicken.mp3 Category: podcasts -- posted at: 2:02 PM |
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Wed, 15 August 2007  08-15-07
Conversions
Something Old, Something New
Some Converted…aha…yet another twist
for Charlotte Condominiums…
As I think about the various elements, the variety of processes in the world of real estate most specifically, Charlotte Condominiums…I consider “ conversions�. A conversion would be a property which has been converted to a condominium. A property which had another use, for instance:
Apartments are the most likely candidate for conversions. Property that was initially built as an apartment and at some point in its life span was converted to a condominium.
Cotswold Homes, brick gardens, were built as apartments. At first glance, you might think they would qualify as town homes. Because of their construction, they had to fall into the legal category of condominiums.
Selwyn Village off Wakefield has a town home configuration as well as flats. Obviously they converted to condos from apartments. One clue on the earlier conversions is the tell-tale central laundry facility. And often a central heating system accompanied the apartment status.
Alson Court in Eastover is another conversion. Stately brick with hardwood floors and a handful of carports. There are many conversions throughout the older sections.
My favorites are the handsome old Myers Park mansions that were converted from single family to two or three condos. I applaud that innovative thinking and that was many, many years ago.We might see more of that down the road.
Favorite stories are the apartment/condo/apartment/condo status of Heathstead. One of the largest, if not the largest, condominium complexes in Charlotte. In the SouthPark area, it was one of the pioneer projects and was built by Crosland.
Another favorite in SouthPark is Trianon…and I almost see that being a tear down someday. Precious and pricey location. Still has central heating plant.
Uptown, the elegant Poplar was once apartments. New York flair, solid, classy it was converted long ago and is a coveted location. There are two elevators…each has a special designation. Laundry and parking down. Rooftop terrace. Gramercy foyer. Great windows.
Fifth and Poplar started off as Condos but the market was soft and they went to apartment status but I suspect the construction is more to the liking of condominiums. Unlike some apartments which have been converted.
Sometimes I get the feeling that an apartment building, complex, is being built with the eventual intention of conversion because the construction is less costly for the apartments in some cases. We’ll see more of this I should imagine and the green gets greener.
Unique conversions:
Settler’s Place: on North Church St. Adjoins historic N.C. Medical. Five stories. Six units were prior to new building. These units receive tax credit because of historic designation. Newer units face the old cemetery. Exterior construction is EFIS. 2 parking spaces, deeded storage in basement. Older units (5) share rooftop terrace; 16 new units, each with private terrace.
St. Peter’s
Conversion 1996. Historic building. See AtHomeCharlotte.com Walking Tour. Renovated in early 80s. Parking is off W 6th St.Complex is at Poplar St and 6th St. Some 2 story units, some three. Exposed brick walls/wood floors. Flats as well as townhouse styles. Basement storage.
Alexander House, Elizabeth-Colonial Heights
Conversion. Built in 1917 and converted to condominium in 1993. 509 Clement Ave. Clement Ave was originally constructed to accommodate the trolley so it is wider than most streets and has a boulevard effect. Total of five units at Alexander House.
Business and warehouse converted to condominiums? You bet. There’s Factory South and Atherton Mills. The cautionary flag I would throw on a conversion is the construction. And not just the new hardwood floors, the updated kitchens with granite and snazzy new bathrooms…hire an inspector to go over the unit with a fine tooth comb. Both structural and mechanical.
Of course, that goes for any property. Yes, even brand new…especially brand new.
That is for another day.
Meanwhile, I suggest “Googling� convert apartment to condominiums. Fascinating and good information. Direct download: conversions.mp3 Category: podcasts -- posted at: 4:30 PM |
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Tue, 14 August 2007  August 14, 2007
The Planning Commission, the Zoning Department, Home Owners and Neighborhood Associations.
Charlotte-Mecklenburg has a large and capable staff of good folks at The Planning Commission. They have an excellent map-making department, a superb graphics department, they have numbers and statistics folks with lots of experience and they have visionaries, too. It amazes me how we sometimes do not listen and take into account their recommendations. Doesn’t that make you wonder? Recently, zoning was passed by the governing body for a project in Dilworth that both the Planning Commission and the Neighborhood Association opposed.
I read an article recently from Seattle…it spoke to the longing many years ago for the community to be involved in the planning of their city. Community formed, community spoke and with little avail. Money speaks louder make no mistake about it…if it’s in the form of the possibility of increased tax revenues or another source of income…we see it happen time and time again. And if community wins once…wait…for the developers can often outwait the community. It has happened before and it will happen again. Axiom.
Zoning. How do they keep it straight? We have to have smaller home sites so we can have more homes. We court density thinking it is the only saving grace, the only answer to an energetic, burgeoning town. Smaller home sites, more vertical homes priced higher and higher each year. And just for fun, do you think there is a limit on the number of one bedroom condominiums in uptown Charlotte? Okay, here is a puzzle. There was an article about the Light Rail and how there are building permits for 7300 residential units along the rail. Now there is also a report that informs us that in the last quarter of 2006 there were 7300 building permits for condos. There is probably some overlap, but when asked, I was told they are not the same.
The very neighborhoods with their charm and ambiance that brought folks here are changing. Maybe it is inevitable. We are a people who fancy “more�. I keep wondering if other cities go through this…where neighborhoods change and streets change and the Mom and Pop shops and restaurants can’t compete and pretty soon, Charlotte as we know it, knew it, is gone.
In my sleepy, country neighborhood, we have a strong neighborhood association because builders have found us and try to build more houses than our covenants and restrictions call for. We want to maintain the integrity of our neighborhood, we stand close, chip in, hire an attorney, speak out, fight back. Part of this process has been fun…we have a website, an email newsletter and we get together more often. Look for the good, cherish the positive.
I have a friend who is a personal trainer…she says we “tear� the muscle apart to build the muscle stronger. Maybe it is that way with cities. I have lived in Charlotte for over 50 years. I love this place like no other. I can recall another time…and I am grateful that we live in this vortex of growth and change. I only wish we could grow our integrity as well.
Direct download: planning081407.mp3 Category: podcasts -- posted at: 4:47 PM |
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Mon, 13 August 2007  August 13, 2007
Beginnings ARE Difficult…
Especially When Defining Charlotte’s Condo Market
Many of us in the real estate profession are shaking our heads in wonder, amazement and amusement about the Condo landscape in and around Charlotte, NC. So what must the general public be thinking? Or how about the developers and builders? And the mortgage folks? Then there’s the planning commission, the zoning department, the water and sewer department, Light Rail. Oh, and let’s remember, the management companies. Oops, then there’s current events-the mortgage debacle. And past events, the cycle of overbuilding-the lure to investors in an energetic, glitzy market. Oh, my-where do I start?
With the basics. I believe that there are many levels available for scrutiny and I have learned that old axioms age well because of their simple truths.
Cycles: Many years ago in Uptown Charlotte NC, condominiums in Center City Charlotte were built in Fourth Ward and in Third Ward. They were, by and large, smaller complexes, except Springfield Square and by the sheer nature of Condominiums then, pretty avante-guard. Local lenders encouraged this residential concept and granted loans to encourage buyers…many of the loans, however, were adjustable or balloons of 5 to 7 years. And as time rolled forward and folks were moving up and out, re-financing became tough and selling became tougher. Enter rental property. Then, of course, any buyers who would come would have a tougher time getting a loan because of the higher investor ratios. Condominiums got a bad name. Not because of the concept but because of the variables in the marketplace. Cycles happen. (to be continued)
Less is More.
Charlotte, NC used to be a sleepy southern town. For many years Charlotte ranked in the top markets, the ADI…Charlotte was a great test market for the likes of Proctor and Gamble…but no one else except the natives could differentiate between Charleston, Charlotte, Charlottesville or Chapel Hill. We were safe. You couldn’t find us easily. So we had condominiums and townhomes in the inner circle around downtown/uptown Charlotte, condominiums out a little…Raintree, Quail Hollow, SouthPark (before it was SouthPark), on the East side off Central, off Kilborne, off Hickory Grove (now W.T. Harris), out Mint Hill way, off Lawyer’s Road…and then an accelerated spurt in the late 70’s, early 80’s off Carmel. But you get my drift. We had condos and townhomes…and once again, the tick of the cycle. The builders in my opinion overbuilt. (to be continued).
Buyer Beware.
I have a friend who says of the world, how can you do anything well when you are trying to do everything? I see that now in new construction: poor building materials, poor construction. Lack of attention to detail. Re-direction of responsibility. And on the buyer’s side: lack of knowledge, lack of qualified representation, lack of patience. (to be continued.)
No Such Thing as a Free Lunch
Free furniture, free closing costs, free home owner’s dues, free mortgage, free moving…Hang-on to your hat because there is almost always an underlying reason. Builders are rarely going to give anything away unless they need to…and if they need to, the buyer needs to be able to read the signs…and make the situation work for them. We live in a capitalistic society and it is driven by profit. Money. (to be continued.)
Thanks for tuning in...got questions? I am listening.
Lynnsy Logue, The Real Estate Lady/ Condo CanDo, Charlotte, NC
Charlotte's Condominium Specialist
Direct download: beginnings2-0814-07.mp3 Category: podcasts -- posted at: 10:38 AM |
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