Continuing a theme from my previous appearance on Selling New York, in the April 22nd episode I had a chance to focus on identifying and addressing the inherent “energy” of the apartment that I was tasked to sell. An apartment, house or any kind of home acquires its energy not only from its own history, but from the histories—the experiences, goals, aspirations, obstacles and anxieties—of the people who live in it,  as well as of their guests, their neighbors and, dare I say, their brokers. I was educated in the existence and power of this type of energy by my friend and colleague Reginald Arthur, who for years has studied the energies of individuals, their homes and their environments. Almost as soon as I took over the listing of an apartment at 50 Gramercy Park North, I brought Reggie in to help promote the residence’s positive energies. Similar to the penthouse (at 350 West 23rd Street) featured in my previous episode, the one at 50 Gramercy is a relatively new construction and its current occupants have lived there for less than three years. Reggie and I have come to understand that new developments often attract and absorb negative forces that accompany the building process: the stresses of financing, the convulsions of construction, the uncertainties of the marketplace in which the apartments are sold. Furthermore, the 50 Gramercy project incorporates an old New York hotel that has hosted many unusual guests over the years, each of whom contributes his or her own energy to the bones of the building. All of these factors, if sufficiently negative, can create a pall that, on a certain level, deters buyers. Reggie identified this immediately and took measures to reverse its effects. He tries to help homes release negative energies from dark periods in their histories by assisting their owners and brokers in doing the same. In other words, if the people who live and pass through an apartment are able to expel their negative energies, so too will those energies be expelled from the apartment itself, resulting in a space that is brighter and more attractive to prospective buyers. Whether or not they believe in the veracity of Reggie’s methods, my sellers (and I) are always filled with confidence by his presence and charisma. And, after all, isn’t confidence  just another form of positive energy?

Chelsea Garden

The skies are grey, the real estate market is cloudy, and the unpredictability of both has never been more apparent. The New York Post’s Katherine Dykstra wrote a story today that featured apartments with outdoor space. Will this will clear the air and give us hope for brighter days ahead?

I still contend that THIS IS THE TIME TO BUY! I say this not because I own a brokerage that relies on transactions, but because of the fundamentals underlying the opportunity for buyers and their ability to transact.

It’s June.

July and August are supposed to get hot.

Let’s see what happens.

These are certainly good times for the buyers in the land of new development condominiums here in NYC. That is if you have 20% down, good credit, a job and you are looking to buy in a building that is nearly, if not 100 percent complete. Prices are down precipitously, high inventory is providing abundant choices, interest rates are at a 45 year low, and developers are providing incentives on top of their incentives. As a broker leading one of these projects, 125 North 10th Street, it feels like running a booth at the bazaar in a third world country. Every weekend I am not sure if people are showing up to practice their haggling skills or are actually looking for a new home. (more…)

Breakfast anyone?

There are more similarities in these two names than one might think. If you’re into numerology, you’d notice that both names are spelled with an unusual combination of a consonant, followed by a vowel, followed by two consonants….you get the idea.

“Be fearful when others are greedy and greedy when others are fearful.” said Buffett. Historically, this has proven to work wonders for him (for the most part). He ranks number 2 in the United States with an estimated net worth of $50 billion.

During the depression, Kelloggs and Post (the cereal companies) took two different paths. James Surowiecki eloquently wrote a piece in this past week’s New Yorker about this. Kelloggs, with their contrarian business model proved to be more successful. As we continue to grow our company organically in this market, I find myself asking mentors about this philosophy. They all overwhelmingly agree with Buffett and Kellogg, although it’s always easier to give this type of advice from the outside looking in.

We are clearly in a buyers market which means that those who are brave (and smart) enough to take advantage of this historic moment, should come out long term winners. My advice, from the inside looking out, is to seize this moment and embrace the opportunites this market brings. I know there will be some echo’s of 1998 to 2006 where the bears were saying “I could have, should have, would have…” 

Don’t be a foolish bear. Be sly like a fox!

In June 2008 I was walking down Fifth Avenue and saw George Soros’ new book “The New Paradigm for Financial Markets: The Credit Crisis of 2008 and what it means.” I bought the book, read it, and thought to myself “whew, let’s hope this guy is wrong”. Unfortunately, he was right on the money, and the global financial and housing crisis is almost exactly as he predicted. The video above from 2006 further validates his foresight. He has been politically outspoken and has provoked some passionate rhetoric from the left and the right. Love him or hate him, one can’t argue with his success and foresight.He is one of the few billionaires (estimated above $9 billion) who’s net worth is growing, not shrinking. I would love to know a few things from him. Namely…….

1) What do you think of the stimulus plan?
2) Can you explain to me why Czech prime minister Mirek Topolaneka calls the plan a “way to hell” that will “undermine the stability of the global financial market”?
3) What is your outlook for the housing market in the next 12 months?
4) When will we hit bottom (if we haven’t already)?

I’m hoping to see a new book from him soon that will answer some of these questions, and more. I’ll certainly be paying attention!

So I sign up for Twitter. I figure I will be able to read the newspaper, buy an apartment and hang out with 50 Cent in my spare time. Just when I thought things were going well, I get a message that says, “Too many tweets!“.

I guess when everyone absolutely must know what you are doing at that very moment things get a little hectic. Now you know what I am doing and maybe I will try again tomorrow!

Who says dreams don’t come true? When I first began tramping around the Lower East Side in search of the perfect dive bar, I always looked upon it as a playground; a place to drive to in my 1962 “Three on the Tree” Rambler Wagon from my home on Staten Island, not a place I’d wind up living, even though everything about the neighborhood piqued my interest: so funky, so diverse, such a time capsule of a New York rapidly vanishing and evolving, the people, the places, the vestiges of the immigrants who settled here at the turn of the 20th century! Wistfully, I’d imagine a day I would be living on the lower east side the same way, I suppose, Chekhov’s Three Sisters imagined getting to Moscow. But unlike Olga, Masha, and Irina, my journey took place. Read all about it!

I must say, as my first in-person encounter with Reggie Arthur drew near I didn’t really know what to expect. My partner here at CORE Group, Kirk Rundhaug, had worked with Reggie before, and vouched for the results.  Indeed, a property Kirk had listed for over a year found a taker the day after Reggie did what he does

Now, as I stood waiting for him outside the Upper West Side building where a listing of ours had been on the market for just over six months, I thought to myself, “What’s this guy going to be like? Will he be an inch off the ground? Speaking in tongues? Eyes rolling back in his head? Is he going to want to hug me? What?” Kirk’s experience notwithstanding, I confess to a degree of skepticism.

I’m happy to say, the person I encountered that afternoon defied my somewhat cynical expectations. In my first meeting with Reggie Arthur I was face to face with a warm, gregarious, and firmly rooted gentleman with whom I formed one of those instant connections we happen upon from time to time. We chatted, he cleared, and less than a week later our Upper West Side listing had an accepted, all cash offer that closed in just a little over a month! A coop, no less!!

Now, not only is Reggie an integral part of our team, he’s a friend.

Now that the 2009 ship has sailed, there are numerous new development condominium projects that were bought in 2007 and 2008 that are now starting to close.  Many people are anxious to move into their new homes and (hopefully) meet their new neighbors.

Did you know that it is legally permissible for the sponsor to retain board control in a new development even if only 1 unit remains unsold, as long as it was fully disclosed both in the bylaws and in the special risks section of the offering plan?  The rules change for a conversion that requires a sponsor to give up control of the board after five years or upon the sale of at least 50 percent of the units, whichever occurs first. This is according to New York Real Estate attorney Mark Axinn.

However, should the sponsor give up control of the board of managers, the sponsor cannot designate or nominate the majority of the managers. In this case, the sponsor is not prevented from voting with its percentage of common interest for unit owners who have similar views, as long as the unit owners are not on the sponsor’s payroll or otherwise given money by the sponsor.

In 1973, Barbara Corcoran created what was eventually to become New York City’s top real estate brokerage company. Her entrepreneurial mind, common sense approach to building a business, creativity and tenacity set her apart from the field. She sold the company seven years ago and started applying her creativity and knowledge into other endeavors. She has written two books and is widely considered a pre-eminent expert in the real estate and business world. I had the pleasure of speaking with her about the company she created and eventually sold and the general market.

THE INTERVIEW

Shaun: What was the most challenging part of starting your real estate brokerage company?

Barbara: Coming up with the cash, absolutely, because I was working as a waitress at the time and I lived off of what I earned in tips. Coming up with the cash to start any business was a major obstacle. But fortunately, my (what was soon to be boyfriend), came into the diner. I met him and he gave me the cash to start a brokerage firm. A thousand dollars.

Shaun: That’s a great story.

Barbara: That was a stroke of good luck.

Shaun: So you never became a real estate agent? You started your own company immediately and you never went to work for a firm?

Barbara: I started my brokerage firm in New Jersey immediately because my boyfriend had a friend who was an attorney, and as an attorney he was able to license me. So I just went and took the test. In those days, you have to appreciate 35 years ago, there were no barrier entries at all. If you could walk and talk you could pass the test. And I could do both, so I sailed through it.

Shaun: Is it any different now?

Barbara: Of course. It’s a pain in the neck now. In New Jersey, in New York, any state. Top of the list of course is California where fifteen years after I went to California five times to attend the courses I failed my brokers license five times in a row. I never got to move to California because I already had the Corcoran Group. I wanted to just move to California to just start all over again, but I couldn’t because I couldn’t pass the damn exam. In answer to your question; “Is it more difficult today?” It’s more difficult in terms of education, because you have to take courses and pass the exam, which is a pain in the neck. (more…)