Why Is It So Hard To Have A Home In California? With Dan Dunmoyer #605

On Friday, September 28, the Norris Group proudly presents its 11th annual award-winning black tie event, I Survived Real Estate.  An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, tech disruption, and opportunities emerging for real estate professionals.  All proceeds from the event benefit Make A Wish and St. Jude Children's Research Hospital.  This event is not possible without the generous help of the following platinum partners: the San Diego Creative Real Estate Investors Association, InvestClub, Inland Empire Real Estate Investment Club, ThinkRealty, Wilson Investment Properties, Coach Fullerton, First Lending Solutions, PropertyRadar, the Apartment Owners Association, MVT Productions, and Realty411.  Visit www.isurvivedrealestate.com for event information, and see Amazon Prime or YouTube for past events.

Bruce Norris is joined this week by Dan Dunmoyer. Dan is president and CEO of the California Builders Industry Association. Dan oversees and manages all aspects of the association. He is a respected and recognized leader, strongly committed to ensuring the CBIA continues to be the leading voice of housing in California as well as efforts to ensure the American dream of homeownership is attainable for all Californians. He is the son of a small home builder from Southern California and a veteran of California public policy issues. He served as president and CEO of the Personal Insurance Federation of California from 1996 to 2005. As Deputy Chief of Staff and Cabinet Secretary for Governor Arnold Schwarzenegger. Most recently he served as Senior Vice President and Head of Government Affairs for Zurich and Farmers Insurance companies.

Bruce and Dan discuss the CBIA, the process for obtaining approval for a housing project in California, how it differs in other states, building permit costs in California versus other states, legislation in place to help the housing and building crisis, solar power on homes in the future, ADUs and how they could help solve the crisis, and much more on the real estate radio show and podcast.

The Norris Group would like to thank its Gold Sponsors for supporting I Survived Real Estate: Guaranteed Rate and Nathan Chabolla, In A Day Development, Inland Valley Association of Realtors, Jason Thorman with Coldwell Banker, Jennifer Buys Houses, Keystone CPA, LA South REIA, Las Brisas Escrow, Lawyers Title, Michael Ryan & Associates, New Western, NorcalREIA, NSDREI, Orange County Real Estate Investors, the Outspoken Investor, Pacific Premier Bank, Pasadena FIBI, Pilot Limousine, SJREI, Spinnaker Loans, South OC REIA, Tri-Counties Association of Realtors, uDirect IRA Services, White House Catering.  See www.isurvivedrealestate.com for event information.

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Eileen Reynolds of CBIA Joins Bruce Norris on the Real Estate Radio Show #450

On Friday, October 16, the Norris Group proudly presents its 8th annual award-winning black-tie event I Survived Real Estate. An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, and opportunities emerging for real estate professionals. Proceeds from the event benefit Make a Wish and St. Jude Children’s Research Hospital. This event could not have been possible without the generous help of the following platinum partners: HousingWire, PropertyRadar, the Apartment Owners Association, the San Diego Creative Real Estate Investors Association, San Jose Real Estate Investors Association, InvestClub for Women, MVT Productions, Wilson Investment Properties, and White House Catering. For event information, visit isurvivedrealestate.com. 

Bruce Norris is joined this week by Eileen Reynolds. Eileen is the chairperson of the California Builders Industry Association. She has served in a variety of leadership positions at CBIA, including vice-chair in 2014, chair of the government affairs committee in 2013, and a member of the political action committee, executive committee, and board of directors. Reynolds as the land use and environmental lobbyist for the California Association of Realtors in the state capital. Her 19 years at CAR gave her an understanding of trade associations, development policy and politics. These are some of the strengths she brings to her leadership role at CBIA. Bruce and Eileen discuss the building industry, where we are at in regards to units built, societal issues and how new home buyers handle them, the lack of construction jobs, the drought, and much, much more on this week's Norris Group real estate radio show and podcast.

 The Norris Group would like to thank its gold sponsors for supporting I Survived Real Estate: Adrenaline Athletics, Coachella Valley Real Estate Investors, Association, Coldwell Banker Town and Country, Elite Auctions, iMortgage, In a Day Development, Inland Valley Association of Realtors, IRA Services Trust Company, Jennifer Buys Houses, Keller Williams Corona, Keystone CPA, Las Brisas Escrow, LA SouthReia, Leivas Tax Wealth Management, New Western Acquisition, North California Real Estate Investors Association, North San Diego Real Estate Investors, Pilot Limousine, Orange County FIBI, Real Wealth Network, Realty411 Magazine, Rick and LeeAnne Rossiter, Southern California Chapter of the Appraisal Institute, Sonoca Corporation, Spinnaker Loans, Tri-Counties Association of Realtors, uDirect IRA Services, Westin South Coast Plaza, FIBI Pasadena, and Scott Whaley.

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Dave Cogdill Joins Bruce Norris on the Real Estate Radio Show #403

On Friday, October 24, the Norris Group proudly presents its 7th annual award-winning black-tie event I Survived Real Estate.  An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, and opportunities emerging for real estate professionals.  Proceeds from the event benefit Make a Wish and St. Jude Children’s Research Hospital.  This event could not have been possible without the generous help of the following platinum partners: Auction.com, HousingWire, PropertyRadar, the Apartment Owners Association, the San Diego Creative Real Estate Investors Association and President Bill Tan, InvestClub for Women and Iris Veneracion, San Jose Real Estate Investors Association and Geraldine Barry, MVT Productions, and White House Catering.  For event information, visit isurvivedrealestate.com.   

Bruce Norris is joined this week by Dave Cogdill.  Dave is a former senator who is now president and CEO of the California Building Industry Association, a position he has served in since 2013.  Prior to serving on this board, Dave was the county assessor for Stanislaus from 2011-2013.  He also served as a commissioner on the California Water Commission.  He was also the chairman for the Maddy Institute at Fresno State University after departing from Legislature.  During his years in office, Dave worked a lot with leaders to resolve issue relating to rural, healthcare, and education.  For his service he has received several awards including the Prestigious Profiles and Courage Award from the John F. Kennedy Library Foundation. Bruce and Dave discuss the drought's effect on the building industry, legislation for drought relief, employment since the Great Recession, projections for 2013 going into 2014, unsold inventory, changes in the target buyers, the increase in multi-generational buyers, lowering FHA loan limits, foreign investors, the California business climate, and much, much more on this week's real estate radio show and podcast.

Bill Cosgrove will be featured on this years' panel for I Survived Real Estate 2014.  The Norris Group would like to thank its gold sponsors for supporting I Survived Real Estate: Adrenaline Athletics, Coldwell Banker Town and Country, Elite Auctions, In A Day Development, Inland Valley Association of Realtors, Investor Experts, Jennifer Buys Houses, Keystone CPA, Las Brisas Escrow, LA South REIA, Leivas Associates, Pilot Limousine, Primary Residential Mortgage, Northern California Real Estate Investors Association, North San Diego Real Estate Investors, Real Wealth Network, Realty 411 Magazine, Rick and LeAnne Rossiter, Personal Real Estate Magazine, SONOCA Corporation, Southpointe Companies, Spinnaker Loans, Tony Alvarez, and uDirect IRA Services, and the Council of Multiple Listing Services.  See isurvivedrealestate.com for video of the live event and more on our sponsors




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I Survived Real Estate 2009 part 2 #142

This week The Norris Group Real Estate Radio Show presents Part 3 of I Survived Real Estate 2009.

This week The Norris Group Real Estate Radio Show and Podcast presents Part 3 of I Survived Real Estate 2009. This segment features John Young from Young Homes and the California Builders Industry Association, Pat Combs from Coldwell Banker and the National Association of Realtors, and Tommy Williams from Williams and Williams and the National Auctioneer Association. The group continues their discussion on legislation and regulation as related to their specific industries.

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John Young of the California Builders Industry Association #134

This week Bruce is joined by John Young. John Young is the founding partner of Young Homes which is located in Rancho Cucamonga, and he is the Vice President of the California Building Industry Association (CBIA). He has been associated with the real estate business for 30 years.

Bruce begins by asking John to contrast 1990 to what we are currently experiencing. John believes that we are currently in a tougher cycle. In the 80s we had a17 percent interest rates, and yet our current cycle is still more difficult. We are going through a much greater decline in our economy.

Most of the people in the industry are survivors that hope to continue through this down turn, so that they may start building again. Membership in the builders associations is down 50 to 60 percent, budgets are down, and layoffs are occurring. The association consists of public and private builders. John’s company is private and they have had to lay off people who have worked for his company for 10-15 years. John hates doing that because many of these people who have worked for him for many years have talent and they have become like family to him.

The sentiment towards helping builders is positive right now. In the last fifty years, builders were often looked at as the guys who would pave over everything and then take their money and run. Home builders create a lot of jobs and there has been a domino effect occurring in our economy as each industry’s struggles are affecting each other. The car industry has had a huge effect on our economy, but John thinks that the real estate industry is even more influential.

Bruce asks John what the time frame for a building project typically is. In normal economic times, it often takes 3-5 years for builders to finish all the paper work, prepare the land, build the homes, sell them and close the deal. That is a very risky time frame because a building project requires a lot of financial investment and you may not finish at the right time.

Builders have been called the most optimistic people in the world, and when you are dealing with an investment that requires a 3-5 year investment you almost have to be. The mentality you have when you first buy a property changes multiple times through the selling process.

Bruce asks John if many builders were caught off guard when they discovered that there was no demand for the product they were selling near the beginning of the down turn, and when it became obvious that the market was slowing down. John noticed things were slowing down during the third quarter of 2006, but then things perked up temporarily in 07, so that made the builders feel optimistic.

Bruce asks if John has confidence in the people he relies on to tell him when things are about to change for the worse. John does have confidence in their management, but what caught John off guard was the magnitude of the decline.

Bruce is sure that the lenders were all caught off guard as well. Bruce asks John about how they responded to the downturn. Most of the banks are working with the builders to finish projects, but it all comes back to whether or not they had a guarantee. John wishes they would try harder though. Banks are trying to work with the builders.

Sometimes when you have a project that gets appraised for less than the lender originally anticipated, the lender will ask you to participate with more capital (margin call). Today, most companies cannot do that. They either do not have the cash or they need to retain that cash.

Regionally builders are more affected by downturns than national builders. John does think that regional builders have been hurt worse. Some builders will have a better chance to make it through this downturn because they work in multiple areas with different cycles. Larger builders also have better access to capital.

Bruce asks John what the mood is towards financing new projects. John says people are not interested in financing new projects. There are some exceptions, such as when a builder has land that has everything ready for building.

Bruce asks if somebody allowed John to have their shovel-ready lots, would he be able to build it for a profit. John says they are gaining maybe 1 or 2 percent profit on their shovel-ready lots.

Young Homes has built a couple thousand homes in Fontana over the last ten years and now those homes are competing with his new inventory because of the REO and short sale inventory.

Bruce asks if John ever considers getting rid of new home construction so that he can deal with the existing inventory. John says that is a good idea, and he has looked into it. Unfortunately, because of the size of John’s company, they cannot do that. They would have to change their entire business model to do that. However, there are smaller companies who have been able to modify their work force to do that.

Bruce asks John if the current unsold inventory of homes is still excessive. John says that it still is, but it has improved, and they are now almost finished with their inventory. The federal $8,000 dollar tax credit has helped John’s industry immensely but the state buying program has already run out of money. John’s company is currently working to get the federal program extended and the state he’s working on as well.

Bruce asks how the appraisal situation has affected builders. John says that now appraisal companies are managed differently, and the changes are not helping builders. The appraisers are using foreclosures and short sales as comps, which does not give builders fair market value. Too many foreclosures and short sales are being used. They are having to appeal almost every appraisal. So far the appeals have prevailed but it takes lots of effort and times.

See John Young at I Survived Real Estate 2009.

As a founding partner in Rancho Cucamonga-based Young Homes, John R. Young has been an active participant in this highly successful Southern California home building company for nearly 20 years.

Together with his partners Reggie King and Jack Young, and the entire Young Homes management team, he has been responsible for the development of nearly 3,500 homes in communities throughout the Inland Empirefs San Bernardino and Riverside counties.

This well-respected and highly successful firm is currently ranked among the Inland Empirefs hTop 5 home builders. At the beginning, the Young Homes vision was to provide entry-level homes that would make the dream of home ownership attainable for young families and other first-time buyers. Although the vision has expanded over the years to include higher-end properties, the companyfs heart remains with the dreams of first-time buyers.

Youngfs experience in the real estate and home building industries extends over close to 30 years. His early years were spent as a successful sales representative and real estate broker focusing on single-family homes. Finding that he had a knack for the business, he purchased and proceeded to operate a residential mortgage company, specializing in FHA and VA loans, as well as conventional loans. The expertise he built in sales and finance has proven to be a major asset to the steady growth of family-owned Young Homes.

John Young has earned his acclaim as a trusted leader in the new home building industry. He is a past president of the Building Industry Association of Southern California and previously served as president of BIA/Baldy View Chapter and president of HomeAid Inland Empire, a non-profit charitable organization founded the BIA/SC and dedicated to building and renovating housing for the transitionally homeless.

Young is currently acting as Vice Chairman of the California Building Industry Association as and is active in the National Association of Home Builders by serving on the Board of Directors.

He is also a Board Member of the Chino Hills Community Foundation, spearheading a variety of community improvements.

Under the direction of John Young, Young Homes has grown steadily over the years, receiving well-deserved acclaim for its valuable contributions to the home building industry and the greater community. The company has been honored as Builder of the Year by the BIA/Baldy View and is the recipient of the 2005 BIA/SC Community Involvement Award.

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