KUNO Real Estate

REGULATION MIS-MANAGEMENT FROM WASHINGTON TO WALL STREET

All this mess with the financials began with regulation. It goes back to the politicians that relaxed/un-restricted what investment banks can do. Before you start blaming Wall Street blame the politicians first which de-regulated the system period!  Then Wall Street management took advantage for their own pockets. GREED! Wall Street created financial instruments that made no sense. That is the main reseason I got away from building/flipping homes in 2005 after doing it for 10 years. There was no way this system/lending practices could keep going on. I gave everyone 2 months notice in October 2005. It took a little over a year for the system to fail. February/March of 2007 when the melt down started (Ameriquest and New Century filing bankruptcy) The politicians could of acted anytime they wanted to but they did not. They knew what was going on or did they! On top of that globalization with more jobs going over seas so now we go from $36.00 an hour jobs to $8.00 an hour jobs. All the credit cards the consumer can acquire, goods and services going up, hourly wages going down-hey why not do 100% financing on a home. Wall Street knew that they needed to create teaser rates and so on so people can qualify for a home mortgage because no one had down payment money. I still blame free trade that opened the flood gates to jobs being out sourced over seas, again Washington and big business. It’s pretty bad what I am seeing out there. I have lost 16 clients in 2008 because of out sourcing. There is no way people can buy homes working retail and restaurants. This is our middle class. The way things are going no one will be able to purchase a home, at least not anything over 1000 square feet (new construction) on a crawl space. $100,000 homes are what the average person can afford with our current economics in Northwest Indiana. That is why I can not stress how owning apartment buildings is the way to go. Your money is out of the banks and Wall Street. You manage what happens not someone else. You have seen what happens when someone else controlled your money!!!! I took all my money out of Wall Street back when the ENRON scandal broke. When I seen that ENRON switched fund managers and froze out the stock holders and employees from accessing their money for 30 days but upper management, board members could still have access that was it. Board members sold there stock and took everyone’s money. What the board members did was build the biggest home that they could in either Texas or Florida. Why you ask because you can not take away someone’s primary resident in those 2 States it’s a liability shelter. One home was 40 million. All the employees lost there 401K program and stocks. I took money out of Wall Street and re-invested it in real estate, wher it will stay. How is this fare to us the consumer and you want us to bail Wall Street out and give you money. You need to make it fare for everyone no one side can benefit over the other.

Builders if you want to make money in new home sales, build cluster homes (4 to 12 families under one structure) in the price range of 80K to 130K if the towns will allow. Some towns will only allow owner-occupieds (covenants & restrictions), you can not rent/lease, you must live in the dwelling. This way your costs are down and you can still make a profit and keep the economy growing with job creation. You need to build for what the average person is earning. If we do not get 50K to 100K average paying jobs in Northwest Indiana than we will be a low income area.

The South Shore expansion project you all been hearing about. Number 1 who is going to pay for it and who is going to bail it out if it fails? Will it be sold to foreign investors like the Indiana Toll Way? I do not support this project because what I am hearing is this will be a good source of transportation to tap into the Chicago job market. So let me get this straight, we are going to spend millions of dollars to work in another State, that makes a lot of sense. I would rather take that money to create and educated our children for high tech jobs here in Northwest Indiana. Let me have this money and you watch how I could make us grow and return of the days when people had 20% or more to put down on a home. No credit cards, money in the bank and in their pockets.Why are our children moving out of the area after they get their degrees? No future growth. That is what I mean no one wants to roll up their sleeves and talk about job creation in Northwest Indiana. I mean high tech jobs. The ones that pay 50K to 100K. We have Purdue Calumet and I.U. Northwest what a great way to train and educate our community to create high tech jobs instead of sending them over seas. The infrastructure to train is in are back yard and instead of building the infrastructure we are instead seeing are talent go to other States. Like I said retail and restaurants is the middle class.

Tell your politicians to create a special fund to create 1% interest 30 year fixed mortgages. Then you will see the housing market take off. Plus it will stabilize the market.

Sorry I have to go but please let KUNO REAL ESTATE help you in all your real estate needs. I know where to buy what market is hot and what market to invest in.