Rod's Notes Wednesday 11/2/11
Go to rodnolespropertymanagement.com click radio notes and sign up to have them emailed each week.
You can participate in the show by calling 318-442-8255 (talk) between 8:05 and 8:55 on Wednesday morning. Do not attempt to call Saturday this is our encore performance (fancy way to say taped).
$3,799 highest price to Stub Hub for 50 year line ticket to LSU / Bama game per WSJ or 1,000 pounds of pecans @ $3 per pound sounds like a nutty deal.
Attachments, Announcements, and Travels:
KCS over pass landscape on Main street dedication and Dollar General new store ground breaking. I have enjoyed good investment returns on main street last acquisition was former Rapides Bank building.
James L. Meyer dedication of our commercial terminal was a class act. Well done, well attended, and very well deserved.
Sheppard Center Wine Auction this Saturday at 6:30Pm at 1826 North City Park Bldv home of Paul and Jo Earle Guillory. Dr James White will be there answer any question and certainly to make you laugh.
City of Alexandria utility department is impossible to get on the phone. Is anyone else having problems with turning on utilities? Our property management might be forced to leave utilities off when showing property as it takes most the morning just to get someone to answer the phone. Not true with City of Pineville or CLECO.
Construction has stopped on highway 28 west due to endangered mussel. Placed a call to highway Department after call from listener last week and my source is solid. Part of construction has to be removed and new bridge design to provide mussels with better chance for survival. Hope this is not true. One human life for a bushel of mussels is just a bad deal. Tell me this story is not true.
People not properties:
New Agency taking over for Louisianan Housing Finance Agency’ work now has their full board appointments in place and our very own Matt Ritchie is one of the 11 board members along with LRA executive director Malcolm Young.
Debbie Ransom was the agent representing the Fair Board in purchase of their additional property on highway 71 South. The Town Talk did not mention Debbie’s name as broker involved and I did not know that last week when we announced the sale on this show.
Justin and Thomas Giallonardo will be our guest this morning to talk about their new headquarters and business activity
Participants in first ever economic forum sponsored by Central La. board of Realtors: John Kennedy, Chip Songy, Elliott Stonecipher, Malcolm Young and Norman Morris. Big thanks to Brenda Lutggehram she did an over the top job. Thanks to our sponsors and all media outlets. Special thanks to Jim Smilie at The Town Talk.
Bret McCormick another good article regard neighborhood profile with his week end story on Charles Park. Did not mention voter turn out of less that 20% for recent election.
Every Deal has a tale / tail.
Five Guys Hamburger opening soon in Petron’s Horizon building on North Mall Drive.
Freds Department store has purchased a sight on highway 28 East. Gary McKay owned the property and Jack Hodges represented the developer.
Hudy C Foreman, Jr. & Johnnette N Foreman (P O Box 10, St. Landry, LA 71367) to Joseph W Dufour, Jr. (1046 Hwy. 1182, Plaucheville, LA 71362) - 354 acres in Sec 7, 8, & 12, T2SR1W, $371,700.00. This is just north of $1,000 per acre.
Kerry J & Barbara K LaBauve, et al (504 Belleau Wood Blvd., Alex., LA 71303) to Bulawick Properties, LLC (3640 Bayou Rapides Road, Alex., LA 71303) - Lot 3, Evangeline Oaks Subd., $448,500.00. Lewis Lauve and Bob Bussey purchased Kerry Labauve’s office on Bayou Rapides. Phyllis Bussey better get the listing on Jackson Street law office.
The Estate of Bill Lewis the inventor of the “Rattle Trap” home sold this week for $630,000. Debbie Schellenger, executrix of the Succn of Eula B Lewis to Gerald J Leglue, Jr. (6219 Landmark Dr. Alex., LA 71301) - Lots 2 & 3, Wycliffe Addn. (620 Wycliffe Way, Alex., LA 71303), $630,000.00.
Ratcliff Facilities, LLC (P O Box 7522, Alex., LA 71306) to Ratcliff Construction Co., LLC (P O Box 7538, Alex., LA 71306) - Dollar General Pineville (1106 Main St., Pineville, LA 71360), $745,000.00
England Economic and Industrial Development District to Gilchrist Construction Co., LLC - Mill and overlay a portion of runway 18-36, $1,780,018.40
(+4.5) Rod’s economic indicator perfect score is 5. When top rating of 5 appears week after week I will share with our audience, that “Green Shots” is here and recovery is in full swing. Only the measurement of lot sale ranked positive score and random sales one scored positive the other negative.
Good news nationally this week: State tax revenues climbed 10.8% during quarter ended in June from same time last year according to Rockefeller Institute of Government at the State University of New York at Albany. The 10.8% increase is biggest in 6 years. State tax revenue for the country totaled $227.6 billion for the second quarter, is still 5.5% less than same time period of 2008. State sales taxes, account for one-third of state revenues.
Plus stock market was up 14% for the month of October
Legal recorder data for five business day October 24th through 28tht
(1)Total of 40 closed deals for the week has positive score
(2) At least one new home sale for the week has positive score
(3) At least one subdivision lot sale for the week garners positive score
(4) Number of lender sales in market place is less than 5% of the total market sales for the week.
(5) Two random residential sales compared to average prices for 2008, 2009 and 2010 that demonstrate increase prices.
(+1) Total sales looking for 40 closed deals from previous week market provided volume of $6,311,898 with total number of sales 43
(+.50) Random sales comparison: We track average sales price in certain subdivision for 2008 through 2010 and compare it to a sale this.
Catherine L Chevalier (409 Bush Ave., Alex., LA 71301) to Calvin M Collins (919 Maureen St., Alex., LA 71303) - Lot 2, Jamestown Colony Subd., et al (919 Maureen St., Alex., LA 71303), $155,000.00. Was going to research subdivision where Marilyn and I owned first home $29,500 total price $2,500 down, monthly payments $149.75 and years later remembered buying our daughter pair of running shoes that cost $149.75 but there was only one sale which makes it impossible to compare.
Roderick S & Brenda L Rogers (4423 Hathern St., Pineville, LA 71360) to Patsy A Rougeou (124 Nell St., Pineville, LA 71360) - Lot 49, Walden Point Subd. (4423 Hathern St., Pineville, LA 71360), $130,000.00. From 5-19-2008 through 10-27-2011 there have been only six sales with average price of $147,233. The sale I am tracking this week was $130,000 below measured average. Hence negative score
Jacques B Houston, Jr. & Catherine M Houston (113 Pebble Beach, Youngville, LA 70592) to Margery P Purkey (1911 Choctaw Dr., Alex., LA 71301) - Lot 120, Chandler Park Subd., et al (1911 Choctaw Dr., Alex., LA 71301), $219,500.00. Seven sales since 3-7-2008 through 10-28-2011 average price of $145,857 with lowest of $87,500 to highest of $219,500 (which is the sale we are tracking) hence positive score.
(+1) New Home sales: Looking for a single sale this week for positive score the market gave us three
Report last week offered a hint of optimism for the battered new home market as new home sales ticked up 5.7% in September the first increase in five months so said the Commerce Department last Wednesday. New home sales are still on pace for the worst year on record that holds true for Cenla also.
V& V Builders, LLC (P O Box 12846, Alex., LA 71315) to Darrell D Payne (5820 Hannah Dr., Alex., LA 71303) - Lot 244, Bocage Subd., Phase V (5920 Hannah Dr., Alex., LA 71303), $218,500.00
V& V Builders, LLC (P O Box 12846, Alex., LA 71315) to April R Painter (5819 West Austin Dr., Alex., LA 71303) - Lot 210, Bocage Subd., Phase V (5819 West Austin Dr., Alex., LA 71303), $203,000.00
D & J Development of Louisiana and Arkansas, LLC (P O Box 1719, Tioga, LA 71477) to Wallice M House (110 Rue Donahue, Pineville, LA 71360) - Lot 7, Rue Donahue Subd., Phase 2 (110 Rue Donahue, Pineville, LA 71360), $125,000.00.
Question for listeners how are the sales going for homes under construction at the Alexandria Golf and Country Club.
(+1) Lot Sales or home site acreage: Only need one sale for positive score and this week the market gave us
DONK, LLC (1580 Hwy. 115, Deville, LA 71328) to Eugene J Hernandez, Jr. & Charlotte A Hernandez (47 Sherwood Dr., Dry Prong, LA 71423) - Lot B, Sam Allen Subd., $20,000.00
Henry B Bruser, III & Jo Anne F Bruser (112 Cypress St., Boyce, LA 71409) to Darrin B & Kelly E Letsinger (6521 Taylor Oaks, Alex., LA 71301) - Lot 14, Lake Shores Subd. (TBD Cypress St., Boyce, LA ), $120,000.00. Two lots remain juxtaposed to national forest hiking trail and great news is your cell phone does not work here.
(+1) Lender total Sales rates positive score if lender sales are below 5% of total sales, only two sales last week totaling $200,277 / $6,311,898 = 3.17%
Federal National Mtg. Assoc. (14221 Dallas Parkway, Suite 1000, Dallas, TX 75254) to Corey A Duffell (6128 Shreveport Hwy., Pineville, LA 71360) - 5.449 acres in Sec 14, T5NR1W (6128 Shreveport Hwy., Pineville, LA 71360), $125,152.00
Federal National Mtg. Assoc. to Bayou Properties of Cenla, LLC (1922 Gus Kaplan Dr., Alex., LA 71303) - Lot 19, Village Green Subd. (234 Fendler Parkway, Pineville, LA), $75,125.00
Prior to 2004 Fannie Mae and Freddie Mac kept their exposure low to no-doc and low-doc loans in keeping their internal risk management guidelines. 2004 is time period when senior management realized in order to meet political mandates it would be necessary to massively cut underwriting standards. . Politics not shortsightedness or incompetent risk managers drove Freddie and Fannie to eliminate its previous limits on no-doc lending.
The push to do more affordable business generated the following sub prime climb:
2003 total subprime and Alt-A originations $395 billion
2004 total subprime and Alt-A originations $715 billion
2006 saw one trillion.
If 2003 standards had remained in place this would not have been an agenda item in my notes each week.
Interest Rates: 30 year fixed is 4.04% was 4.16% the 15 year rate is 3.36% was 3.45%. 5/1 ARM is 3.01% was 3..00%. Refinance now it just cannot stay this low for long, it just can’t.
Home Lending Plan : I liked what Phd. Ted Jones recommended in testimony before congress make every Freddie and Fannie loan re-cast at 5% with same term. President’s plan does not actually pick winners and losers but it does favor parts of the country that experienced hyper inflation in home prices and relaxed underwriting like Nevada, California, Florida, and Nevada. Program will allow refinancing if borrower is current on last six months, reduced appraisal requirements and underwriting fees. Negative loan to value so long as loan is not more than 125% of current value.
LLC who are You?
Bayou Properties of Cenla, LLC Stephen Smith (5200 Rue Verdun, Alex., LA 71303) to Eddis M Cofield (314 Fendler Parkway, Pineville, LA 71360) - Lot 145Village Green Subd. (314 Fendler Parkway, Pineville, LA 71360), $156,500.00
John's Rentals, LLC John Guillot (109 Adams Path, Pineville, LA 71360) to TCBA, LLC Thomas Bolton (4821 Porter Circle, Alex., LA 71303) - Lot 1-3, Sq 2, Pecan Grove Addn., et al, $317,500.00