Volume 4, Issue 4 

WINTER
2005
EDITION

SOLUTIONS

Innovative solutions for

 Real Estate and Resort Developers and Professionals.

 

 

Since our last issue of SOLUTIONS the property market has slowed but continues to perform in ways that defy reality.

According to Reuters home builder stocks declined about 3.5% and it was stated the market is starting to deteriorate. 

We have seen several markets stabilizing including sizzling NYC. Historically apartments took 133 days to sell in NYC, now 130.Last year apartments sold in a few days and many above asking price.That’s over.Will the sales pace slide a bit more as developers offer one-bedroom apartments in Battery Park City (downtown Manhattan) starting at $700 per sq ft. and coop and condo apartments in established or trendy areas starting at $2,500 per sq ft and above?

We are getting mixed messages about the market– National Association of Realtors  (NAR) states some markets are slipping and the Federal Government says October housing starts were up but a bit down in November. The Wall Street Journal recently mentioned housing starts are slowing and homes are taking more time to sell in many markets. Many of the super hot markets like Miami and Las Vegas have advocates saying the boom will continue for many years. Then again evidence of the lottery and ‘created’ bidding wars has slowed.

Assuming the Wall Street Journal and NAR are correct and housing starts are slowing indicates developers are wisely reducing their risk. This may be a little good news for real estate investors that bought in the past year y given there may be less new housing inventory available in 2 or 3 years.

Reality is coming and prices will soon reflect:  value, market conditions, competition, the economy, investor interest, confidence in government, terrorism and crime.

As the myth of never ending real estate increases start to sink in, and real estate as THE only smart place to invest slows, alternatives will become more attractive such as:  the stock market, bonds, CDs, fine art, coins and antiques.

I believe every family should own their own home and many a second home if they can afford to do so.  The risk is buying/investing believing prices will continue to rise as they have over the past 2/3 years.

Interesting is 5 million families have chosen to buy (or be sold) a timeshare as an option to the second home. The timeshare industry is prospering and will continue to do as resort condo and condo/hotel unit sales slow.

Another effect of the cooling $2 trillion housing boom will be its effect on commercial real estate. There is a natural connection between the residential boom and the health of five commercial sectors – retail, multi-family office, hospitality and industrial.  As housing cools are the other sectors far behind?

Talk to me. I am baffled why someone that can add or has a friend that can add would buy a resort condo as an investment for one million dollars (plus or minus) when the income is maybe $2,500 to 3,500 per month if they rent unit.

Run the numbers for a typical one million dollar 2 bedroom, 2-bathroom condo. Insert any numbers you wish from a $250,000 unit to a $3,00,000 unit.

Buyer puts down 20% -  $200,000.
Buyer takes an $800,000 mortgage at 5.50%
Maintenance including taxes $600 per month.

     1-  Loss of interest on $200,000 deposit @ 4% =  $8,000
     2-  Mortgage @ 5.50% ($800,000) = $44,000
     3-  Maintenance = $7,200 
     4-  Miscl = $2,800
     5-  Annual cost = $62,000

Rent for $3,500 per month = $42,000

Annual loss = $ 20,000

Value as an investment not good + headache, agita, unpleasant family discussions and $20,000 less per year to buy groceries, chatzkas, art or a decent pre-owned car.  

The hope to sell the property to an alien or dreamer for $1,200,000  within 6 months and make $200,000 is a fantasy that may happen with intervention by the Tooth Fairy.

Having said that, if buyer can afford to keep their resort condo or home for several years and enjoy the benefits (or financial negatives), why not. As a short term, flip investment - Nyet. 

So what to do given conventional wisdom says:
“Bubbles Burst and Balloons Deflate”?

If I were a Developer
I would take my profit, lower my expectations and sell off iffy inventory. There will be many opportunities to purchase good property coming on stream from developers that believe there will be no market adjustments. 

If I were the Lender
I would assure my developer had contingency marketing plans, was innovative and explored all marketing avenues.

If I were a Broker
I would strongly advise my sellers to take a reality check and sell their property now.

If I were a Real Estate Investor
I would do my homework carefully and calculate how much pain I can absorb and make conservative decisions.

If I were a First Time Buyer
of a first home or a second home buyer I would look at property I could afford, make an offer and be willing to walk away.

 “And if I were a rich man"
Yada yada yada yada yada,  I would own a condo in in the sky, a villa at the beach and a mountain place with a view forever.”

While it may sound like the ‘Fiddler on The Roof’ it’s time to listen to your practical side and not your wishful side. 

Developers in particular must be innovative with their product, services and their marketing

What to do?
Given real estate markets are unique each will  be effected differently   by the 'slow' down. Do your homework, listen to all sides of the bubble controversy, plan for a turndown, hope for stability and be proactive and innovative. Talk to and listen to professionals who will tell you what is wisest to do not just what you want to hear.   Perhaps pick up some ideas from SOLUTIONS. Most importantly  enjoy this exciting 2006 real estate casino.


“I want to stay as close to the edge as I can without going over, On the edge you can see all kinds of things you can’t see from the center.”

Kurt Vonnegut, Jr.

 

 

HIGH ANXIETY

J.P. KING

A THEMED ENVIRONMENT

GMG CAN CREATE A MARKETING MACHINE

GMG CHINA

ITALIAN ROYAL CASTLE

INCREASE YOUR INTERNATIONAL SALES

THE CARIBBEAN CONNECTION

ST. PETERSBERG FLORIDA

CARIBBEAN AND LATIN AMERICA OPPORTUNITIES

NEWTEK MERCHANT SOLUTIONS

WORLD FAMOUS ARTIST

ARDA 2006 CONVENTION & EXPOSITION

INTERNATIONAL MANAGEMENT NETWORK




Helping Developers, Brokers and Industry Professionals enhance their business.

 



 


 


...Insert your ad here...


 

Thoughts, suggestions,
commentary?
We want to hear from you.

Contact
•  Send news items to:
Kimglobal@aol.com
•  Send advertising inquiries to: Kimglobal@aol.com

 

 

Experiencing sales
‘High Anxiety’?

* Sales not as projected or promised?

* Cost per sale bugging you?

* Cancellations outpacing closings?

* Founder programs floundering?

Time to explore how Global Marketing Group can provide marketing expertise and SOLUTIONS for your condo, condo hotel, timeshare or real estate development by reviewing and refreshing your plan based on:  facts, reality, good judgment and creativity.

GMG will analyze your buyers, prospect profile, competition, lead generation, marketing and sales effort, and develop a unique Strategic Marketing Plan. We will expand your market prospect list, perhaps build an international broker network or make minor adjustments. We treat each project as if were ours and our money being invested. 

GMG has prepared plans for hundreds of property companies including Fortune 500 companies, Financial Institutions and leaders in resort and real estate development.

Contact:  GMG President Ken Miller 212-247-6060
Email. KimGlobal@aol.com
Visit our website: SOSPlan.com

"Strong people make as many mistakes as weak people do.  The difference is that strong people are quick to admit their mistakes, laugh at them, and learn from them.  That is how they become strong.  Weak people avoid, deceive, deny, make excuses, project their most negative behaviors onto others, and remain oblivious to their relationship with mistakes that then get
repeated and become chronic."

Richard Needham


J.P.King Auction Company
and GMG provide
The Marketing and Sales Advantage.


Developers, builders and financial institutions have a new powerful program for selling their real estate cost-effectively as a result of the partnership between GMG and J.P. King Auction Company (www.jpking.com) the nation's oldest and largest premier auction marketing group.
 

This partnership is a natural. J.P. King has been marketing real estate at auction since 1915, and since 1970 GMG has been a national and international leader in developer consulting, marketing and sales. .
 

Ken Miller, CEO Global Marketing Group and Vincent Jarbo, Chief Operating Officer of J.P. King agreed that between the two organizations they offer one of the worlds most powerful marketing programs for real estate. 
 

The auction marketing decision allows the property owners to take full control of the sales process, including date and time, as well as setting the terms and conditions of the sale, while alleviating contingencies.      
 

GMG SOLUTIONS approach brings empirical thinking, innovative marketing,

cutting edge Internet use plus the tried and true basics to assure

NOTHING in the sales process is left to chance. 

 

"We are delighted to be working with Ken Miller and GMG, and I believe this strategic relationship will provide property owners the best solution to sell their property as cost effectively as possible,” said Jarbo.

 

Together, J.P. King and GMG provide services including launching a new project, boosting a slow sales effort or closing out a development.

 

“This will be a powerful sales solution for owners of residential, resort, commercial and industrial property in the USA , The Caribbean and Worldwide.” said Miller.
 

J.P. King and Global Marketing Group, Ltd will combine the excitement and broad reach of a J.P. King accelerated marketing campaign with the creativity of GMG’s marketing solutions. 
 

If you have a property to market contact Ken Miller or Vincent Jarbo

to assure your 2006 is as good as it can be.  
Vincent Jarbo 800 662-5464, Ext. 1102,
vincent@jpking.com
Ken Miller 212 247-6060,
kimglobal@aol.com

 

"I am in earnest; I will not equivocate; I will not excuse; I will not retreat a single inch; I will not be denied; and I will be heard."

William Lloyd Garrison


Duh! Investors can speed

your sell out.

GMG can submit your property offer online to 200+ investment groups with
10,000+ investors. GMG will analyze your property and 'package' a simple
investment pro forma that conforms to the criteria of these investors. Thus in addition to GMG on site, off site and  broker programs we expand your potential to successfully market your property.
 

Information: Ken Miller, kimglobal@aol.com

"There comes a time in a man's life when to get where he has to go - if there are no doors or windows - he walks through a wall."

Bernard Malamud, in Rembrandt's Hat
 


GMG CHINAa working partnership

 

GMG China, a JV between Global Marketing Group, New York and G8 Consultants, Australia are currently working with US investors in the acquisition of a major property in Beijing.

Peter Chen and Ken Miller, partners in GMG China provide a unique property consultancy service to introduce US and other foreign investors to prime real estate opportunities in the People’s Republic of China.

Mr. Chen, has 35 years experience in the property development industry in Australia, Asia Pacific and China.  His company G8 Consultants is the advisory service division of Sabina Corporation Ltd. a listed public company on the Australian Stock Exchange.

Chen focuses on finding properties for investors owned or controlled by the top 200 Chinese developers throughout China. His property expertise, cultural understanding, negotiation skills and honesty are invaluable.”

“The Chinese companies selected by GMG China are reputable, reliable, and recommended by our personal network of trusted associates in China.”

Additionally Chen and Miller formed an investment program for Chinese investors to purchase property in America. We are exploring opportunities to be created by the forthcoming cooling in the USA property market.  One product being created for foreign investors is a 'package' of condominiums in USA or the Caribbean.

If you are interested in exploring the China market for investment, funding, joint venture, or selling,
and an analysis of the Shanghai market
contact Ken Miller: Kimglobal@aol.com
or Peter Chen: ceo@sabina.com.au

"You can have anything you desire if you want it desperately enough.  You must want it with an inner exuberance that erupts through the skin and joins with the energy that created the world."

Sheila Graham


Own a magnificent
Italian Royal Castle

Ideal for private club or timeshare

Once upon a time the Castello was the

summer residence of sitting Popes.
 

 

Magnificent 1000-year-old royal medieval castle on 11 acre landscaped site reminiscent of its 11th century beginnings. Contains conference rooms, restaurant, 25 and rooms and unusual spaces for creative happenings in 3 separate buildings, Located 50 miles south of Milan, about 25 miles from Portofino and Genoa.  Castello Torre Ratti sits on 11 landscaped acres close to Roman ruins, overlooking vineyards and ready for the right group to develop into a magnificent Resort and Spa. Would be an ideal timeshare.  Asking $3.8 million Appraised at $5 million.  Expansion possibilities.

Information: Ken Miller 21 247 6060, email: kimglobal@aol.com

“If you can be yourself you have no competition. But while you
must be open for advice you must stay true to yourself.”

Sir Ken


Increase your international sales

Stewart Title helps increase sales by providing
comfort to your prospects.

Stewart Title offers a full suite of real estate closing services (title guaranty, escrow, and closing coordination).

Our products are designed to work alongside the local transaction process adding value by increasing transparency, speed and security.

For information how Stewart Title
can help you increase sales
contact Brad DeLoach 800 729-1900 x8568
email international@stewart.com

Visit our website
www.stewarttitlelateniamerica.com

"There is a great deal of pain in life, and perhaps the only pain that can really be avoided is the pain that comes from trying to avoid pain."

R.D. Laing


You have a Caribbean Cousin

If you currently develop or market Caribbean property we can provide expertise and contacts that will enhance your project’s potential.  Two of the Caribbean’s most experienced professionals teamed up to offer services that will give comfort to your banker and investors.

The Honorable Una Clarke C.D, a former member of the New York City Council and a professional honored by Jamaica for her contribution to the island, as well as the Caribbean-America communities in North America; teamed with Ken Miller, one of the most experienced marketing professionals in Caribbean resort development.

Clarke, Caribbean-born, and thriving in New York as politician and business leader to The Caribbean, has received many awards for her service to Caribbean communities. As a NYC Council Member she sponsored more than 350 pieces of legislation. She has the expertise and contacts to get the job done.

Clarke and Miller services:
Politics and Political Strategy
New Business Development
Marketing and Sales
International Trade & Finance

Clarke and Miller offer 50 + years of contacts and experience that can be a valuable asset to your development team.

Information: Ken Miller, kimglobal@aol.com Tel. 212 247 6060

"Indeed, the intensity and joy of purpose increases with the growing magnitude of the obstacles encountered."

James Allen


St. Petersberg, FL
Two Sunny Opportunities

$7 million can get you almost 300% return.

Parcel located in St Petersberg Central Business District.

Plan is to build 120 condo units in high demand area. Proforma available.  Owner looking for developer /investor.

$7.5 million can bring extraordinary return. 
Excellent location.  Can build 122 affordable units     plus commercial About ready to go. 

Information: Ken Miller ,212 247 6060, kimglobal@aol.com

“I have always been regretting that I was not as wise
or fearless as the day I was born.”

Henry David Thoreau + Sir Ken


Caribbean and Latin America Development Opportunities

In each situation a GMG associate walked the property and has the information required to make a wise decision.

Jamaica

Montego Bay

Rose Hall
Exceptional developer sites available in this fast growing spectacular 4,000-acre destination resort with a Ritz Carlton Resort and Spa and 3 golf courses. Various prices. 6 acre Seaside site can build 80 condos $6.6 million.
Contact Ken Miller, kimglobal@aol.com

We have other properties in Jamaica.

Costa Rica
 
San Carlos, 45 Acres
One hour from San Jose.
Five (5) hot springs, cold water river, lots fruit trees. Permits granted. $2 million
Information: Ken Miller, kimglobal@aol.com 

Tamarindo, 150 Acres
Great Ocean views, 5 min. to Playa Langosta
10 mins. to Tamarindo (hottest area of Costa Rica), water and electric, clear title. Father bought to develop with son and son not interested. Hello opportunity. : $5 million
Information: Ken Miller, kimglobal@aol.com

Panama

Bocas Del Toro, 344 pristine acres
On island of San Cristobel, 20 minutes by boat from Island of Colon (Int'l airport). Eco-tourist paradise. Ideal for waterfront eco hotel and resort homes or condos. Like Costa Rica 10 years ago. Hotel site - 35 acres -  $500,000
Condo site – 94 acres – Titled – $1,900,000
Home sites – 150 acres - $2,400,000
Marina Site – 65 acres - 60 year lease.
Information Contact: In Panama, Jules Huppert 
Tel. number (507) 6616 1939 Seahorseinvestmentservices@gmail.com
or Ken Miller 212 247 6060, kimglobal@aol.com

“To fight fear, act on it immediately and with great courage.  To increase fear – wait, put off, postpone, avoid."

David Joseph Schwartz


Newtek Merchant Solutions can save resorts, marketers and
developers money.

A full service electronic payment processing organization with service centers throughout United States. Newtek Merchant Solutions enables merchants including retail, mail order and Internet businesses, to accept all major credit cards for payment.

Service Highlights

Ø      Discounted fees on your credit card processing program including l detailed analysis of your current processing program.

Ø      Implementation of state-of-the art equipment which allows for greater operational efficiency and additional cost savings.

Ø      Ability to guarantee checks cost-effectively

Ø      Ability to accept pin based debit cards which eliminates any discount rate for transactions

Ø      Training of staff on how to keep processing fees at a minimum

Ø      Gift and loyalty card programs

Newtek Merchant Solutions will customize a program best suited to your specific business needs.    

Contact: Ron A. Reiter, Executive Vice President
Tel. 212 356 9544, email: rreiter@newtekbusinessservices.com

 

“No challenge is so difficult to solve if you address the obvious.”

Sir Ken


World Famous Artist Lin Evola

Can create a masterpiece
for your project.

World famous artist Lin Evola started the Peace Angeles Project in 1992 when she saw an epidemic of violence while living in Los Angeles.  That experience gave her the idea to create the Peace Angeles project.  “We melt weapons to create magnificent Peace Angels which stand as beacons of hope and icons for peace.” Evola said.  Evola cast her first bronze sculpture called the “Renaissance Peace Angel” from firearms confiscated from LA street gangs. It was installed at the Crossroads School in Santa Monica in 1997 and the 8-foot statue was taken to the World Trade Center in October 2001 where it stood as a memorial and symbol of world peace.  

Evola can create a unique and valuable
work of art for your project. 

She is also selling a limited number of original gouaches, oil paintings and sculptures. The tax-deductible purchase will help the world peace effort and a beautiful addition to your home or business.

Information: Ken Miller kimglobal@aol.com

 Evola website: www.evola.enewspro.com

“The best way to make your dreams come true is to wake up.”

Paul Valery


Networking and Educational Venues 

ARDA 2006 Convention
Las Vegas March 26 to 30
Venetian Resort Hotel Casino

Great opportunity to network with leading resort development professionals and visit hundreds of industry suppliers.

Information:
American Resort Development Association
Tel. 202 371 6700, www.arda.org

  Keep on beginning and doing and failing, and then each time you fail, start all over again, and you will grow stronger and stronger until you have uncovered your great and holy purpose - not the one you began with or thought you'd have, perhaps, but one you'll be glad to own and surrender to every day."

Anne Sullivan


International Management Network

Real Estate Opportunity & Private Fund Investing.

High performance property investments, direct real estate, private equity and merchant banking.

Laguna Beach, CA January 25-27
Montage Resort & Spa Laguna Beach

Information: Elisa Ringlen, Program Manager
212 901 0601, eringlen@imn.org

“We can allow circumstances to rule us
or we can take bold steps to rule our lives and create success.”

Sir Ken


IMN presents:

Condo Conversion Symposium

March 30th, 2006

Pier 60, New York, New York

Panel sessions to include:

Condo loans, Joint Ventures, Equity Financing, Debt Financing Trends, Construction Defect Claims, Evaluating Market Feasibility, Lawsuits & Legal Pitfalls, Mixed -use Projects and Risk Management

Info: Todd Rosenberg 212 901 0552 Email: trosenberg@imn.org

 


 

“Be the best version of yourself
and not a second rate version of someone else”

Judy Garland

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SOLUTIONS reaches 25,000 professionals in real estate, resort and hospitality development.
For information contact: Sir Richard Steele: 212 247 6060
Email:
kimglobal@aol.com

SOLUTIONS is Copyrighted © 2005 Global Marketing Group, Ltd. New York, New York Quotation not permitted. Material may not be reproduced in whole or part in any form without written consent of publisher.

 

Global Marketing Group