I Survived Real Estate 2008 continues with Part 8. Bruce Norris brings forward the CEO of the California Builders Industry Association of the Southern California, Richard Lambros.
Richard discusses real estate as a speculative investment and the cycles. Richard warns us not to think of it as a cycle because that means we can have no influence over the outcome. Total new home production is down and will produce the lowest number of homes in history. In the building industry, they say its a building depression. In three years, production has been cut to one third. 2009 is not looking very good. Riverside and San Bernardino account for much of the cuts.
The economic impact of less building is very important. Just in Southern California, the building industry created $48 million of economic activity in 2005. In 2008, reaching $18 billion
Homes today are no longer shelter, they are infrastructure. Energy efficiency in California is already cutting edge and new guidelines are making them even tougher. New homes are unfairly being forced to make up for the 99% of retail homes that arent energy efficient. This inequality is difficult for builders to manage at times as costs and regulations add not only costs but time.
At the same time, a new home is a Prius and an old home is the Hummers. New homes have come a long way in building standards and built-in efficiencies. Buying a home today is very different than buying
New home projects are difficult to get approved. He speaks on residual land value and how builders figure price for a project. Builders work from comparables down to land price and not the other way around. Valuing land right now is too difficult and no one wants to loan on it right now. Builders are focusing on costs control and concerned about anything that adds time or costs to a project.
Real strength will return to building when strength returns to all the other sectors. The state needs jobs and economic growth for builders to thrive.
Platinum Sponsors:
The San Diego Creative Investors Association (SDCIA): http://www.sdcia.com/
Investors Workshops: http://www.investorsworkshops.com/
Frye / Wiles: http://www.fryewiles.com/
Proxibid: http://www.proxibid.com/
White House Catering: http://www.whcatering.com/
MVT Productions: http://www.mvtproductions.tv/
Pechanga Resort and Casino: http://pechanga.com/
The Denver Nuggets: http://www.nba.com/nuggets/
The Chicago Bulls: http://www.nba.com/bulls/
The Cleveland Cavaliers: http://www.nba.com/cavaliers/
Gold Sponsors:
7 Steps to a 720 Credit Score and Philip X. Tirone- http://www.7stepsto720.com/
Chicago Title – https://www.ctic.com/
Elite Auctions – http://www.sellwithauction.com/
Foreclosure Trackers – http://www.foreclosuretrackers.com/
Investors Resource Center of America LA and Steve and Robyn Love – http://www.irca-losangeles.com/
Las Brisas Escrow – http://www.lasbrisasescrow.com/
National Club of Real Estate Investors and Sam Saddat – http://www.ncrei.com/
Northern California Real Estate Investors Association (Norcalreia) and David Granzella – http://www.norcalreia.com/
North San Diego Real Estate Investors and Linda Wessels – http://www.nsdrei.org/
RealtyTrac – http://www.realtytrac.com/
RE Ventures and Michael Pines – http://www.reventuresrealty.com/
Real Estate Investors Club of Los Angeles and Phyllis Rockower – http://www.realestateclubla.com/
Real Wealth Investor and Scott Whaley – http://www.realwealthinvestor.com/
Saddleback Valley Communities – http://svc4.com/
Silverstar Finance and Janet French – http://www.silverstarfinance.com/
Sunset Hills Memorial Park and Mortuary – http://www.sunsethills.cc/
The Mission Inn – http://www.missioninn.com/
The Mortgage Equity Group – http://themeg.net/
The Naked Real Estate Investor Club – Rosie Nieto – http://www.nakedrealestateinvestorsclub.com/
The Short Sale Processor and Nick Manfredi – http://www.theshortsaleprocessor.com/
Virtual Real Estate Tour and Layla Tusko – http://1wealthcreation.com/
Wholesale Capital Corporation – http://www.wccmtg.com/
Duration : 0:10:1
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