Arizona law professor Brent White says the only thing standing between many “underwater” homeowners and a better financial future is a misguided sense that walking away from a loan commitment is morally wrong.
White, an associate professor at
For the first time since the foreclosure crisis began, the price of a Phoenix-area foreclosed home is roughly the same as it was a year ago.
Arizona State University professor Karl Guntermann, who publishes the monthly ASU Repeat Sales Index housing report, said preliminary data for December show the median price for a foreclosed home was down just 2 percent from December 2008. more…
Two of the Valley’s biggest commercial real-estate services firms are going corporate, leaving behind independent ownership in favor of centralized, corporate backing.
Grubb & Ellis, Colliers International and the nation’s other big sellers of office, retail and industrial property said the changes are being driven by the country’s newest commercial-property barons, a handful of companies with names like Bank of America and JPMorgan Chase. more…
A deal that could give nearly $100 million in tax incentives to the
Though the court allowed the deal, its ruling laid out strict new provisions on tax incentives. Those rules could have a deep impact on future tax-incentive deals, which cities have long used to attract new commercial development and the accompanying sales-tax revenues. more…
A group of investors in California is paying close attention to the saga of Elevation Chandler, especially a lawsuit by a man who claims he won the property at a trustee sale for $1 million, a fraction of what the site is worth.
Elevation
This year’s Maricopa County property-tax-lien auction is shaping up to be the biggest ever and potentially more lucrative for investors than others in recent years.
It’s a prime example of how misery so often rubs elbows with opportunity in the Phoenix-area real-estate market.
Rampant home foreclosure and plummeting property values caused a dramatic spike in unpaid property taxes during the 2008 tax year. On Feb. 8, those unpaid taxes will be sold to investors hoping to earn interest on them until the property owners pay up. More…
If you felt like devising a slogan for the coming income-tax season, a good one might be: “Patience required.”
Filing a tax return can be a daunting exercise even in normal years, but Congress has added several new wrinkles that undoubtedly will confuse people. These include everything from new tax breaks for college expenses to those for energy-efficient home improvements and new-vehicle purchases. more…
Development has ground to a standstill across much of metro
Business has never been better for the
The
Although the tribes rely on substantial revenue from gaming operations, economic development officials from both communities say they started diversifying their economic models back in the 1960s, long before they started building casinos on tribal lands.
None of the tribes contacted for this story would disclose specific financial data on casino operations.
“Way before gambling, our tribal leaders were looking at how to generate income, and they started with the
The industrial park — bounded by
Construction and raw materials enterprises represent a significant part of the
“Our economic goals are to be diversified and not have a single reliance on gaming income,” said Quannah Dallas, economic development manager for the
In 1989, Scottsdale Pavilions opened at Indian Bend and Pima roads. The 1.1 million-square-foot power center, built by a nontribal developer on leased land, was a unique deal that caught the attention of real estate and retail interests across the country.
“The community was really being innovative,”
The Pavilions morphed into other land-lease and development agreements, including a Walmart to the south and several business parks, including Riverwalk
Unlike many rural tribes, the Gila River and Salt River communities leverage their proximity to the
Major league debut
More tourists will be visiting the Salt River reservation with the opening of the Talking Stick Resort this year and completion of the 11,000-seat, $23 million stadium that will become the Cactus League home of the
Diamondbacks President and CEO Derrick Hall said the
“We had several attractive options that came as a result of the RFP process, but in the end, the Salt River Pima-Maricopa Indian Community clearly stood out,” he said. “We have been impressed with the progressive nature of the community, and its desire to create an entertainment district around the complex. This, along with the adjacent and existing Scottsdale Pavilions shopping center, will enhance the fan experience, which we anticipate to be second to none.”
The
“We saw this as something that would drive more development in the corridor,” said Levi Long, the tribe’s media relations specialist.
Increased traffic in the area should bring new vitality to the aging Pavilions, which has been hurt by retailers that relocated or went out of business.
Gaining attention
The Salt River and Gila River communities are not the only
Millions of 401(k) accounts have made up lost ground over the past 10 months. Helped by a stock-market surge and continued contributions, the question now is how to keep from backsliding when market momentum slows or reverses.
With the market up significantly since it hit its low in March, the rapid rise in stock prices has many believing that a sharp downturn is likely. The last thing investors can stomach is the market reversing itself and snatching more of their retirement money.
What to do now? more…
An artist’s rendering shows the proposed Gaylord hotel in Mesa.
Mayor Scott Smith is still optimistic about Mesa’s Gaylord hotel despite a gloomy e-mail sent recently by Colin Reed, president of Gaylord Entertainment Co.
The 1,200-room hotel, which would be
Another upscale resort, a championship golf course and classy retail outlets were also to be included. more…
David Kadlubowski/The Arizona
The financially troubled
A trustee’s-sale auction for the InterContinental Montelucia Resort & Spa,
Phoenix Business Journal - by Mike Sunnucks Friday, January 15, 2010
But a new trend is emerging in state tourism, and it’s not based on one of
In foreclosure tourism, out-of-towners take mini-vacations in the Valley to shop for foreclosure and short-sale bargains as investments, second homes and even primary residences.
“They seem to lay in the sun at their resort and make phone calls to attorneys and lenders, trying to see if there is a deal to be had,” said Jordan Rose, managing partner of
Rose said she’s received dozens of calls from foreclosure tourists from
“It seems as if ‘Fodor’s’ is suggesting that one of the things you do on a holiday to Phoenix is buy a foreclosed house — like be sure to try the cactus jelly, see the Grand Canyon and, by the way, don’t dare leave without a cheap house,” Rose said.
“We thought it was an odd submarket niche, as we have been getting calls from out-of-staters who want ultra-fast due diligence and contract review in order to do a quick close on a foreclosure,” she said.
Rose said out-of-state investors and buyers comprise the bulk of her real estate business right now.
“Nearly all the buyers we talk to — dozens over the last two weeks — have at least out-of-town financial backers. Money is trying to flow into
Joseph Maggiore, a Realtor with
“They are structuring their visit around touring a predetermined set of listings, based on weeks or months of searching and refining the available properties,” he said. “The goal that I have seen has really been to get in; take a look; identify the right property, possibly with a backup or two; make a move on it; and then head home after writing the offer.”
Maggiore said he’s seeing buyers from
He said such buyers now make up about one-third of his business.
Most resort and tourism officials contacted for this story weren’t specifically aware of the foreclosure tourism trend. But Kirsten Schaefer, public relations director for the
“We eventually want to create partnerships with local real estate agents for both foreclosure tourists and relocation visitors,” Schaefer said.
But the fallout is not all good, according to ASU economist Jay Butler.
He said foreclosure and other bargain-basement sales drive down home values.
“Investment interest is being driven by the anticipation that home prices will rise again in the next few years. While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers who are watching their limited equity erode as prices decline to — and even below — existing debt level,” he said.
Get Connected
Rose Law Group: www.roselawgroup.com
Joseph Maggiore: www.joemaggiore.com
InterContinental Montelucia Resort & Spa: www.icmontelucia.com
Most Foreclosures
States with the largest ratios of homes in foreclosure:
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by Harvey Mackay - Jan. 18, 2010 12:00 AM
As any successful person will honestly admit, “I’ve had my share of failures,” especially me. But from every failure I have learned two equally valuable lessons: There was at least one reason why I failed, and I can rebound from that failure.
According to Shiv Khera, author of “You Can Win,” failures most often occur for one of the following seven reasons:
• Lack of persistence. More people fail not because they lack knowledge or talent, but just because they quit. It is important to remember two words: persistence and resistance. Persist in what must be done and resist what ought not to be done. We all have had setbacks in life. Failing does not mean we are failures!
• Lack of conviction. People who lack conviction take the middle of the road. But what happens in the middle of the road? You get run over. People without conviction go along to get along because they lack confidence and courage. They conform in order to get accepted even when they know that what they are doing is wrong.
• Rationalizing. Winners may analyze but never rationalize. Losers rationalize and have a book full of excuses to tell you why they could not succeed.
• Not learning from past mistakes. Some people live and learn, and some only live. Wise people learn from their mistakes. Failure is a teacher if we have the right attitude. I’ve always said experience is the name we give to our mistakes.
• Lack of discipline. Anyone who has accomplished anything worthwhile has never done it without discipline. Discipline takes self-control, sacrifice and avoiding distractions and temptations. It means staying focused.
• Poor self-esteem. Poor self-esteem is a lack of self-respect and self-worth. People with low self-esteem are constantly trying to find themselves, rather than creating the person they want to be.
• Fatalistic attitude. A fatalistic attitude prevents people from accepting responsibility for their position in life. They attribute success and failure to luck. They resign themselves to their fate, regardless of their efforts, that whatever has to happen will happen anyway.
The rebound lesson is the more pleasant part of the equation, but it is not without challenges. Here are Professor Mackay’s lessons learned from the problems posed above:
• Try new approaches. Persistence is important, but repeating the same actions over and over again, hoping that you’ll succeed, probably won’t get you any closer to your objective. Look at your previous unsuccessful efforts and decide what to change. Keep making adjustments and midcourse corrections, using your experience as a guide.
• Decide what is important to you. If something is worth doing, it’s worth doing right and doing well. Let your passion show in even mundane tasks. It’s OK to collaborate and cooperate for success, but it’s not OK to compromise your values - ever.
• Change your perspective. Don’t think of every unsuccessful attempt as a failure. Few people succeed at everything the first time. Most of us attain our goals only through repeated effort. Do your best to learn everything you can about what happened and why.
• Define the problem better. Analyze the situation: what you want to achieve, what your strategy is, why it didn’t work and so on. Are you really viewing the problem correctly? If you need money, you have more options than increasing revenue. You could also cut expenses. Think about what you’re really trying to do.
• Don’t be a perfectionist. You may have an idealized vision of what success will look and feel like. Although that can be motivational, it may not be realistic. Succeeding at one goal won’t eliminate all your problems. Be clear on what will satisfy your objectives, and don’t obsess about superficial details.
• Don’t label yourself. You may have failed, but you’re not a failure until you stop trying. Think of yourself as someone still striving toward a goal, and you’ll be better able to maintain your patience and perseverance for the long haul.
• Look in the mirror every day and say, “I am in charge.” You may not have control over every phase of your life, but you have more control than you realize. You are responsible for your own happiness and success. As I like to say, your attitude determines your altitude!
Mackay’s Moral: You can turn “down and out” into “up and at ‘em.”
Big-time credit-card reform legislation kicks in soon and, on balance, should prove helpful to consumers.
Final rules from the Federal Reserve, stemming from legislation enacted last year by Congress, will give cardholders more control, greater protections and enhanced disclosures when dealing with card issuers.
“A lot of the ‘gotcha’ rate practices are coming to an end,” said Odysseas Papadimitriou, chief executive officer and founder of Cardhub.com. more…
Valley home builders might not be building a record number of houses lately, but they’re not sitting around idly.
A prime example is Shea Homes, a privately held San Diego company with a sizable footprint in the
Vowing to “bring back the excitement of buying a home,” Shea revealed seven new designs with a modular, utilitarian look and feel.
The energy-efficient houses are available in the
Selling under the IKEA-esque brand name SPACES, the homes are offered at prices from $190,000 to $230,000.
Their modern, streamlined look is a departure from typical tract-home design. But what’s far more revolutionary is the SPACES marketing collateral, which reads like an indictment of boom-era, bigger-is-better consumer values.
“Gone are useless walls, hallways and rarely used formal rooms,” one Shea news release says, explaining the homes’ open design of the floor plans.
Another passage touts “smart, sleek, energy-efficient designs, without antiquated features wasting resources and space.”
Kitchens, bathrooms and bedrooms - which the new homes do have - are referred to as eat spaces, splash spaces and dream spaces.
Meanwhile, rooms not included in SPACES homes are referred to by their Victorian-mansion equivalents (the family room becomes the parlor, etc.).
Shea said it conducted extensive market research before crafting the new approach.
For more on the new SPACES homes, visit www.sheaspaces.com.
The money will come in the next few months as part of the federal Neighborhood Stabilization Program.
Funding is awarded based on need.
In early 2009, several Valley communities, Maricopa and Pima counties and the Arizona Department of Housing split up $121 million from the first round of funding. Most
More of the latest round of funding will go toward fixing up foreclosure homes to make them affordable rentals.
“This additional $2 billion in funding will help stabilize hard-hit communities,” HUD Secretary Shaun Donovan said, discussing the new round of funds.
The
It’s also high season for the lucrative but less boastful backbone of
The
The sale of state buildings to investors was so successful that
The two-day sale that ended Wednesday drew $735.4 million from investors.
“We’ll have the money in state coffers by January 26,” said Alan Ecker, a spokesman for the state Department of Administration. more…
LOS ANGELES - KB Home capped its fiscal year with the first quarterly profit since 2007 because of a change in federal tax laws and said it expects to turn a profit this year.
KB Home sold 8,341 homes during the 12 months that ended in November and forecasts sales of 8,000 to 9,000 homes this year.
The company’s new orders, however, rose just 12 percent in the fourth quarter compared with the year-earlier period. That disappointed investors who were anticipating that KB Home, which caters to first-time buyers, would get a bigger lift from a federal tax credit for new owners. more…
LifeLock Inc. is looking to expand beyond its core identity-theft prevention products that have made the Tempe-based startup a darling among venture capitalists and the target of lawsuits from customers and competitors.
In the process, the private company is expected to go public this year. more…