Vintage Real Estate Ads for "Up and Coming" Neighborhoods?

Madison Monroe represents some property in New Town in Staunton, Va., I think about it a lot. The south side of Beverley St. has a neighborhood that is often referred to as the Stafford block. Traditionally, it's the "black neighborhood," but I like to think of it as an up and coming neighborhood. The truth is that it is not an all-black neighborhood. In fact, it's one of the most diverse neighborhoods in Staunton, and I like it a lot. I almost moved there myself, but I was looking for one of those insane deals you hear about people getting on places they live.

But there are deals too good to be true on the Stafford block, and there are some great people on the block, and there's a community garden, and a kids' playground, and all sorts of street fairs and stuff. I love it. Plus, there are some artists living there. It's great, and it's close to downtown. And did I mention cheap?

So, I've been thinking a long time about this because Agent Genius published an article about revisiting strategies of the old days, and I was wondering how to apply that. It wouldn't work with the apartments or condos, I don't think, but it could totally work for a neighborhood that's making a comeback as a cool place to live.

I remember living on the border of Berkeley and Oakland in California, and the people who were moving in were changing those neighborhoods for the better (IMHO), and they were looking for things no one had demanded for a long time in those spots. I think those folks would be receptive to the aesthetic and message of a vintage campaign to move a neighborhood back up to where it may belong. . . to have people care about it and invest in it again.

Maybe we'll see a lot more of this as the suburbs start dying, and the neighborhoods downtown start thriving again.Will we advertise the downtown neighborhoods to the people who used to live in the suburbs the same way we sold them on the suburbs? Probably. Look for similarities. The demographics haven't changed that much.

The Small Business in the Low Tax Revenue Environment (and Why the Darjeeling Cafe Still Is NOT Open)

Lately, there's a lot of talk about how the city is gumming up the works in Staunton, VA. I don't totally agree. There's an issue that's got some people riled regarding the noise downtown after 11pm. City Council will vote on it tonight. About a hundred people claim to be attending. That's quite a bit for Staunton City Council.
The problem I have is that this is a non issue as long as there are not enough services downtown to actually provide a healthy environment to businesses. There will be no businesses downtown because there won't be anyone with any jobs or money to patronize them in a way that will keep them in business. And lowering taxes is not going to bring them back in a million years. Here's why:

The Darjeeling Cafe has been under construction for one (1) year. Part of the reason it's taken us about twice as long as everyone expected is due to the building inspector situation in Staunton. The building inspectors are good ones I think, but there are only two (2) of them. Now, two (2) might seem like enough, right? Well, you'd be wrong about that. What if one gets sick? What if one is on vacation? What if one gets sick while the other is on vacation? And that's where we are right now.
Two (2) building inspectors are not enough, and the only reason we don't have more is because everyone wants to keep taxes low. Everyone wants to keep business license fees low. Everyone wants to keep parking ticket fines low. The truth is that when you keep everything low, there's no money to pay teachers and garbage collectors and cops... but there's also no money for building inspectors, health inspectors, fire inspectors, and unless you trust businesses to always do the right thing, these people are necessary for businesses to exist. Right now, we're supposed to have five (5) building inspectors, and we only have two (2). Right now, the Darjeeling Cafe is waiting to open its doors and employ twenty (20) people, but it can't because there are only two (2) building inspectors. You see the problem? You see how easy the math is? Taxpayers keep a small number of people employed in order to encourage employment in the private sector. When cities cut their budgets, the dumb taxpayer thinks, "thanks, city hall," when what he should really be saying is, "will businesses be able to open in this town?"

The same thing goes for schools. If you don't have good schools, no one will want to live in your town. If no one wants to live in your town, no one will work in your town. No one will be able to sell houses. No one will be able pay real estate taxes. No one will get parking tickets. The city will be more on the ropes than ever... etc., etc., etc.

Some of you will say that there needs to be lighter regulation on businesses, but that's when people start burning alive in buildings, and no one likes that.
Some of you will say that low taxes will allow more businesses to come here because they won't have to share as much with the city, but that means waiting around more for people like sewer service people and the various inspectors I've already mentioned, and everyone knows that time equals money.

The tax-free or low-tax environment is a bad one for businesses and for communities.

How to Rent a Place to Live

Don't be so quick. Those who hurry often stumble.

I just moved, and I've been a renter all my life. I like being on both sides of renting. Some day, I would like to own a home that I rented out while renting my own living space. I know that sounds weird to most people, especially in America, but I just don't see real estate the way most Americans see it. I don't look at it as an overly emotional investment. That's easier to do when you're renting. Sure, you have to ask yourself if you could be happy in the space that you're considering, but there's a lot more to think about when you're thinking of a place. You have to be sure that the deal you arrive at is beneficial, and contrary to popular belief, rentals are as negotiable as purchases.

I want to share what I've learned about renting on three continents

First, think about what you really  want. Do you want cheap? Do you want big? Do you need a place that's good for kids? Do you want quiet or downtown? What are you willing to sacrifice in order to get what you really want? If you like downtown vitality, don't think anyone is going to take you seriously when you complain about noise or parking. If you want a kid-friendly neighborhood, don't think that you'll be able to have loud parties late at night. Big and cheap? Don't think you're going to be in the nicest neighborhood.

Appliances. How new are the appliances in the place you're scoping? Are you going to have to call the landlord a million times because the pilot on your old stove is out? Is your electric bill going to be incredible because the refrigerator they have in there is old and inefficient? Do you really want the ancient washer/dryer that cost too much to run? How many gallons is that water heater? Is it gas or electric?

With appliances, two other questions come up:

1. What kind of person/organization is my property manager?
2. What kind of utilities am I looking at?

Utilities are going to be a BIG deal! Does the owner pick up any of them? Do they have any records about what they cost?

Appliances WILL break down. When they do, do you trust the landlord or manager to replace or repair them in a timely fashion?

What changes would you like to make to the place before moving in? Remember, you can rip out carpets, paint, do whatever you want, as long as you tell the manager before hand. Get that into your lease before signing it. Actually, before I go on, GET EVERYTHING IN WRITING. I am guilty of not following that advice sometimes. I trust people to do what they are going to say, but if you ask for something in writing, and they balk, walk away from the deal. If you're willing to do the deal, you have to be willing to walk away from the deal. Say that last sentence to yourself ten times.

Finally, how much do you want to pay?
This one is interesting because it sounds simple, right? "How much do I want to pay?" Well, the truth is that you can only afford to pay a certain amount, and the amount you want to pay may be quite different from that. A good landlord has an idea in his head about what he'd like you to pay; a better landlord knows what he needs you to pay. You do not want to live in a place for which you're paying less than what the landlord actually needs. That's what makes a slumlord.
Slumlords are not born; they are made.
They take less than what a building needs to maintain, and therefore, their buildings fall into disrepair. Then, once that goes on long enough, they just stop caring about the building and take what they can get for their dilapidated investment. It's a cycle you want no part of. Don't do business with a landlord if you're not going to be compassionate about his and his building's needs. A good landlord knows exactly what he needs to make on a property so that he can fix the roof every 20-25 years, replace the floor every 10-20 years, replace the carpet every 5 years, repaint however often, treat the siding, keep the grounds, and everything else. He knows how long it will be empty after you move out. He's studied this. He has a number if he's good at what he does. That doesn't mean that he's going to give you that price. That's what negotiation is for.

So, say you ask for a per-month cost that's low, and he says he can't do it. OK. What do you want if you're going to pay what you can afford? Here's where you start talking about appliances and heating and everything else. Don't give up for nothing. Make an offer like you would on a house. A good landlord will counter offer. If he doesn't, walk away. You don't pay sticker price on a car, why would you on an apartment?

Once you move into a place

1. Communicate with your landlord. It's in his best interest to keep you there and make you happy. He doesn't want to go to court.He doesn't want to have to be a jerk. COMMUNICATE!!!
2. Report problems. People think that problems are things people want to avoid--not true with landlords. They want to know what the problems are with their buildings. They don't want something going on that they don't know about. Even if it's a problem you don't care about, email them and tell them what it is and tell them you don't care. If they feel like fixing it great. If not, that's great too.
3. Try to pay on time. Yes, everyone pays late. People who have the money pay late. Try to not make a habit of it. Let the landlord know what the problem is and make sure he knows that you're going to pay on time in the future.
4. Work out a plan. Landlords love plans. They amortize everything; they depreciate everything. They look at objects unlike other people. They look at doorknob, e.g., and they think about how long that doorknob is going to last and how much it's going to cost when it finally dies. They plan for that doorknob's failure. So, if you get into trouble with payments or anything else, write up a plan for your landlord. He'll thank you for it.

Here's three (3) more for good measure:

1. Take pictures of anything you think is nasty or bad. If things go south, you'll need them in court. Judges love pictures. Landlords love pictures. Renters, you need pictures. Take as many as you need. The more, the better. You do not want to walk into a courtroom empty-handed.
2. Keep records about your place. Make sure you keep business cards and names. Stick them in a file. You don't have to be super organized, but when push comes to shove, you're going to go to that file. Your landlord has a file on you. You need a file, too.
3. Don't be emotional. Walls and land make people crazy. Don't let it make you crazy. Don't *love* your place. Live in it.

Real Estate Websites and Consumers

I've been working on the Madison Monroe website. It's not easy-going. We have a lot of different properties and services, and I'd like to get them all online in a very organized and interesting way. The page hierarchy needs some major work. We have to put ourselves in the place of the consumer; and the different consumers, when it comes to real estate, are extremely different.

As it is right now, in my limited experience in real estate, I see our prospective consumers as follows:

1. The Investor
   The real estate investor may want to buy a piece of property and sit on it, they might want to buy a property that is already generating revenue, they might want to take a piece of property and spruce it up into a property that generates revenue. And then, they might want you to manage it, or they might want to manage it, and they want you to lease it. Maybe they just want to flip it. "The investor" might need its own blog entry to really get into comprehensively.
2. The Would-be Home-owner
   The would-be home-owner is someone who wants a house to live in. But they want to OWN it for whatever reason. Maybe they think that there's an investment opportunity there. Maybe they think they're fulfilling the American Dream, or they just want to do what their parents did or what their parents always told them they should do. Whatever the reason, they want a house that's theirs. They usually are in the midst of becoming experts on the subject and will quiz you. They'll also want to show you how much they know.
3. The Residential Lessee
   The residential lessee wants a place to live. But do they want a house or an apartment. How many people will be living there? How much do they want to spend. What neighborhood do they want to be in. It's hard to get lessees what they want. You have to check their credit and criminal reports and it's a dice-roll for a lot of them.
4. The Commercial Tenant
   The commercial tenant wants a place to do business. The best ones have clean business plans and think about bottom lines and square feet. They think about utilities and labor and all the things it takes to do as much as you can with as little as possible. The worst ones are dreamers who have ideas that sidetrack the real estate professional. They will sit in your office and tell you all the impossible things they want and how unwilling they are to compromise. But they don't ever have enough to build. The ones with enough to build sometimes do, but they often realize that what they've built is more than they need or less they need, and then they're stuck with a building they can't really use.The commercial tenant is very interesting because they are business people. Sometimes you can see which ones will make it and which ones will be unsuccessful in the first few moments talking with them.
5. The Developer
   The developer wants to buy land and improve it. The developer is either a gambler or a scientist or a scientific gambler. They want to put a lot of money on the table, and the best ones have studied the game. They know soils and rocks and angles and laws and the cost of almost everything. Developers are good people to know because they know a lot about the whole business. They are interesting and know a lot of people. They move millions and billions of dollars sometimes just to make a little bit in comparison.

If I thought about this more, the list would be longer. Trying to create a website for all of these kinds of consumers is difficult. It's probably why most real estate websites really suck. I could imagine having whole different sites for each type of consumer with a portal page simply linking to each.

A Website about Getting Your Real Estate License in VA

I found this site about getting your Virginia real estate license. I think it's a pretty good one.

I wish that there were more of it because the guys seems to know his stuff and want to help.

This is a preformatted review I did through GoodReads about TRUMP's BOOK, How to Get Rich

Trump: How to Get Rich by Donald J. Trump

My rating: 4 of 5 stars


Donald Trump is one of those fascinating people I can't understand why I think he's fascinating. I'm sure I don't like him. I'm sure that he is a mean-spirited man who yells at people and micromanages them and destroys because he can. I don't think I would want to count him as a friend.



When I read his book, though, I could not help but think to myself, "if I were more like him, I would hate myself, but I would be rich." I also found myself saying things like, "if my father had been a millionaire, I might be a billionaire right now if I were the right kind of jerk."



Trump is like John Gotti. He's a celebrity criminal who's flamboyant enough to make books like this interesting enough to get through. His arrogance makes up for his lack of writing talent, and his short chapters are like a James Elroy homage or something.



This tasteless beast who builds golf courses and rides limos through the McDonald's Drive-Thru and stars in their commercials is hard not to psycho-analyze. . . and surely he's counting on that. So, all you amateur psycho-babblers, have at him. And while you're shaking your head at how horrible his mother and father must have been, you'll find yourself raising your eyebrows at the very few pearls of business wisdom sprinkled like scatter shot in this book.



Also, the title is bull shit. . . a joke or a marketing curve ball. And that's funny.



View all my reviews

Mike Brown is an Architect in Staunton

There are a few architects I like in Staunton. One is Chris Schooley, one is Marc Paxton, and one is Mike Brown.
I list them in no particular order. I like them and recommend them all.
If you need  an architect in Staunton, you should go with one of these.

If I Had the Time, I would Open a Record Store in Staunton

If I had the time, I would start a record store in the Queen City Marketplace.
The Queen City Marketplace opens in a few days, and I think a record store would be perfect for the space. I think it would be perfect for Staunton. I think we need a record store.

If I had the time or just a brain big enough to add one more iron to the fire, I would definitely open one. I think it would be awesome to own one, and I think it would make money. Probably, it wouldn't turn enough to live off right away, but I would start it small and grow it slowly.

Here's a link to an article about opening a record store.
Many of the issues opening such a retail effort are circumvented by having it in the Queen City Marketplace. Plus, there is a guy who repairs musical equipment and record players who is taking a space there, and wouldn't it be awesome to share a space with a guy like that? He could even help you hunt down a cheap turntable.

If you live in or near Staunton and want to start a record shop, please let me know.

Lead Poisoning

I've been reading about lead poisoning and its history because I was shocked to find that lead as a staple ingredient in many residential building materials, including paint, was not banned until 1978.

The link above is a brief history of the awareness of the illness commonly referred to as Lead Poisoning, and it illustrates something I think is very interesting. It screams conspiracy. We've known how dangerous lead was for a very long time. Long before 1978, anyway.

I am always wary of giant corporations. I'm not the young man I once was who thought that all big businesses are evil, but when I'm in the water with them, as we all are all the time, you should be aware of what they are. When you a surfing in the Pacific Ocean, you should be aware of sharks and other perils that are posed to befall you at any moment.

Sometimes I feel like a lot of this kind of thing is still going on with the same culprits at the wheel. Big business, in this case the oil and energy companies, dampen the cries of those who raise flags regarding harmful materials, in this case lead. The real estate industry, older than the oldest industry, lets them fight the battles against cost and alarm. The builders are happy to have the work and stay quiet. Use lead paint. It's cheaper. The big businesses say it's safe. We know it's not rrreally safe, but use it anyway for now and while you still can.

This kind of thinking bothers me. Must we wait for regulation to do what's right?
As I become more immersed in this business, I hope that I needn't wait for regulatory measures to let my conscience keep it hand on the wheel. In fact, I resolve to make it so.

There are brownfields all over. There are uninhabitable buildings rotting because it would cost more to modernize them than tear them down. We can't leave the same artifacts and thought processes for the next generation.

Commercial Real Estate Trends

I really enjoy Agent Genius. They have interesting articles like this one that talks about trends to watch for in 2011, and they present their info in a way that isn't all doom and gloom.

It makes me feel like I'm getting into this biz at just the right time. I can't remember what the market was like when everyone was freaking out about how wonderfully easy everything was. I don't remember when you could just sit on your butt and wait for the money to come in. And I don't remember when you could do huge deals with hardly any work and maintain those contracts without actually having to do it yourself. I'm getting into it when the going is hard. . . and you know what? I'm better off for it.

Here's why:
I can position myself through hard work and perseverance to be the go-to person for any piece of real estate in this area. I will work hard to maintain those relationships. People will know me as the guy who works hard for a living and to make his partners money. Then, if the market ever looks like it did before I got into it, I will be be in the perfect situation because I will appreciate the high tide and won't ever be complacent or content to sit around and wait for things to happen.

It's good to start hungry.
It's good to stay hungry.

This industry is primed and ready for new leadership. I'm excited about that.