Notes and Self-Directed IRAs with Rick Solis #595

Bruce Norris is joined this week by Rick Solis. Rick is a retired appraiser, investor, teacher, and property manager. Primarily he is an investor now. He retired only two years ago when he was 48.

Bruce discusses with Rick his retirement accounts he had to invest with, Substantially Equal Periodic Payments, when he first learned about self-directed IRAs, his concerns about the timing of the next down cycle, the states in which he invested in notes, his first Florida loan, the unique thing Bruce had to deal with when working with the real estate there, and much more on the real estate radio show and podcast.

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Rick Solis and His Journey to Real Estate #594

Aaron and Bruce Norris are joined this week by Rick Solis. Rick is a retired appraiser, investor, teacher, and property manager. Primarily he is an investor now. He retired only two years ago when he was 48.

Aaron and Bruce discuss with Rick how he began his journey into real estate at a young age, his first house he bought as an investment, how the downturn affected him, his inventory building and how it has changed, whey he decided to exit sooner than when most people thought advantageous, and much more on the real estate radio show and podcast.

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Appraiser/Investor Rick Solis Joins Bruce Norris on the Real Estate Radio Show #421

Bruce Norris is joined again this week by Rick Solis. Rick is a fellow investor, property manager, property finder, and a good teacher. Bruce and Rick discuss how he got his start in appraisals and financing, the appraisal world and how it has changed, concerns this has caused, values of properties in 2014, inventory and its effect on the softness of price, hedge funds and their influence in the area, and much, much more on this week's Norris Group real estate radio show and podcast.

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Mike Cantu Joins Bruce Norris on the Real Estate Radio Show #360

Bruce Norris is joined this week by Mike Cantu. Mike is an entrepreneur who made his fortune buying homes below market value. He would either hold them as rentals or flip them as profit. Bruce and Mike discuss his avid passion for reading up on real estate, his real estate and non-real estate goals for next year, the volume he expects to have going into 2014, the measurable progress both he and expert Jim Roane expect to see, the assignments he has on properties, the wise decisions people made during the 07-08 crisis, and much more on this week's real estate radio show and podcast.
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Peter Fortunato Joins Bruce Norris on the Real Estate Radio Show #336

Bruce Norris is joined again this week by Peter Fortunato. Peter has been an investor for a very long time since 1965 and loves the business. He is a libertarian, a capitalist, and he believes that transactions result from carefully conceived goals and plans followed by purposeful action and scrupulous documentation. Bruce and Peter discuss repeat business when dealing with private parties, his situation with a property he tried to acquire and the nine heirs involved, Peter's mentors and the people he learned from, his start at the age of 18, his seminar "Peter Fortunato and Jay Turner Present Profits and Mortgages," and much more on this week's real estate radio show and podcast.

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Peter Fortunato Joins Bruce Norris on the Real Estate Radio Show #335

Bruce Norris is joined this week by Peter Fortunato. He is a long-time real estate investor, trainer, libertarian, a capitalist, and he believes that transactions result from carefully conceived goals and plans followed by purposeful action and scrupulous documentation. Bruce has known Peter as a trainer for many years, and even the most experienced investors learn from him and come home with their head hurting when they are done.

 Bruce and Peter discuss how he got his start in real estate, his first properties, the definition of an investor, the attitude of investors today compared to the 60s as well as interest rates, his most important transaction of his life, uncomfortable situations and how this affects him making a deal, and much more on this week's real estate radio show and podcast.

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Aaron and Bruce Norris of The Norris Group on the Real Estate Radio Show #334

In a reversal this week, Bruce Norris is the special guest again this week. He is interviewed by Aaron Norris, his son and Vice President of the Norris Group. Bruce is the president and founder of the Norris Group and has been a real estate investor since 1980. During this time he has been involved in over 2,000 transactions. As an investor, builder, and/or hard money partner he is best known for his long-term market timing reports including The California Comeback 1997, The California Crash 2006, and he is the moderator for I Survived Real Estate. This is their award-winning show that has produced almost $350,000 since its inception in 2008. Bruce and Aaron discuss California Comeback 2, doubling of prices, the handling of homes now compared to the boom, the decrease in labor and construction, migration, the Norris Group hard money loan program, the upcoming even I Survived Real Estate 2013, and much more on this week's real estate radio show and podcast.

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Aaron and Bruce Norris of The Norris Group on the Real Estate Radio Show #333

In a reversal this week, Bruce Norris is the special guest this week. He is interviewed by Aaron Norris, his son and Vice President of the Norris Group. Bruce is the president and founder of the Norris Group and has been a real estate investor since 1980. During this time he has been involved in over 2,000 transactions. As an investor, builder, and/or hard money partner he is best known for his long-term market timing reports including The California Comeback 1997, The California Crash 2006, and he is the moderator for I Survived Real Estate. This is their award-winning show that has produced almost $350,000 since its inception in 2008. Bruce and Aaron discuss the current market, Bruce's reports and his upcoming California Comeback 2, the charts and how they reflect the market, hedge funds, equity sellers, interest rates, the Fed's involvement in the market from 1970 to the present, and much more on this week's real estate radio show and podcast.

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Mike Cantu, Tony Alvarez, and Rick Solis Join Bruce Norris on the Real Estate Radio Show #300

For our 300th radio podcast, Bruce Norris is joined by three special guests: Rick Solis, Mike Cantu, and Tony Alvarez. Rick Solis is a very successful investor who flies a little bit below the radar. He is an appraiser, buys trust deeds, and buys properties. Tony Alvarez, who invented the radar, is the REO Mentor and is a very successful buyer and teacher. He works with buying and holding, buying and selling, does wholesaling, and buys currently out of the MLS. Mike Cantu is a very successful property buyer. He has been a developer, landlord, and trainer. He is specialized in talking to clients on the phone and never meeting a soul who he buys houses from. Bruce discusses with them home prices in the lower end markets as well as the varying cities, hedge funds, the competition in the market and private party deals Mike has put together, the mailers Rick sends out and the attitude of those receiving them, the difference today when promising returns, the inevitable price increases, and much more on this week's real estate radio show and podcast.

In other news, the fifth annual I Survived Real Estate will be meeting on October 19 this year. The Norris Group would like to thank their gold and platinum sponsors for helping to make this event possible.

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Mike Cantu, Tony Alvarez, and Rick Solis Join Bruce Norris on the Real Estate Radio Show #291

Today on the show are three special guests. Rick Solis is a very successful investor who flies a little bit below the radar. He is an appraiser, buys trust deeds, and buys properties.
Tony Alvarez, who invented the radar, is the REO Mentor and is a very successful buyer and teacher. He works with buying and holding, buying and selling, does wholesaling, and buys currently out of the MLS.
Mike Cantu is a very successful property buyer. He has been a developer, landlord, and trainer. He is specialized in talking to clients on the phone and never meeting a soul from whom he buys houses.
Bruce discusses with them the first time they were inspired to invest in real estate, how their children view real estate, the time they had their first good stretch of real estate, their toughest times in the job, their definition of wealthy, and much more on this week's real estate radio show and podcast. 

In other news, the fifth annual I Survived Real Estate will be meeting on October 19 this year.  The Norris Group would like to thank their gold and platinum sponsors for helping to make this event possible. 


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Bill Shipp Joins Bruce Norris on the Real Estate Radio Show #270

This week Bruce Norris is joined by Bill Shipp. Bill has been one of the largest wholesale buyers of real estate in Riverside for many years. He has a unique system that can even be done from a distance, which he proves every day by living in another state.  Bruce and Bill discuss how he got started in the business of buying real estate,  the market back in the 80s and how different it was, the work Bill has done with investors and the training he has passed on to others, the types of properties he buys, the VA and HUD repossessions that were big back in the 80s, the time when Bill bought out of the MLS, and much more on this week's real estate radio show and podcast.

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Craig Hill with The Norris Group #226

This week Bruce is joined again by Craig Hill. Craig has been with The Norris Group since its inception in 1995. He has helped The Norris Group invest in approximately $40 million worth of trust deeds.

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Mike Cantu, Tony Alvarez, and Rick Solis #200

This week, The Norris Group celebrates its 200th episode! Thanks everyone for your continued support for our work. Our goal is always to provide the best information to help you in your California real estate business. This week, we have a special show featuring three of our favorite guests: Tony Alvarez, Mike Cantu, and Rick Solis. The four discuss what they would do if they could do it all over again, what they've been working on in the current market, and the different business models they all have. The three also talk about price and rent declines.

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REO Mentor Tony Alvarez #183

This week Bruce is joined this week by long-time real estate investor and now author of "Breaking Into the REO Business," Tony Alvarez. Bruce and Tony discuss the main way Tony buys houses, 14 distinctions for the lazy and incompetent, how Tony describes lazy, market timing, how to get in with agents that already have an investor in place, building relationships, love and its role in becoming great, and much more.

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Aaron Norris and Diana Barlet #170

This week Bruce Norris is joined by Marketing Director for The Norris Group, Aaron Norris, and Investor Relations E with the Norris Group, Diana Barlet. Bruce, Aaron, and Diana discuss the journey of buying a house in the current market as two solid buyers including why they waited, how long it took to find a house, information on buying an REO, the process and difficulties closing a transaction, and much more.

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Scott Barber and Deanna Lorson - City of Riverside #167

Bruce Norris is joined this week again by the Development Director for the City of Riverside, Deanna Lorsen, and the Code Enforcement Director for the City of Riverside, Scott Barber. Bruce, Deanna, and Scott discuss the state of Riverside's budget, if taxes have decreased with real estate prices, how the state is trying to tap into the budgets of local cities, more on code enforcement, the process of fines with the city, investors and the city in partnership, lenders challenging cities and fines they've levied on foreclosures, the Riverside Renaissance and redevelopment funds at work, the Fox performing arts center, bond issuance, down payment assistant programs, rental assistance, the Home Investment Partnership, condominiums being told down because of builder foreclosure, and much more.

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Christopher Thornberg of Beacon Economics #162

This week Bruce is joined once again by Christopher Thornberg. Christopher is an expert in the study of regional economies, real estate dynamics, and business forecasting. In 2006, he co-founded Beacon Economics which is an economic research and consulting firm that specializes in real estate markets, local economic development, and public and private policy issues. Christopher has also been part of the Norris Group’s award-winning fundraising series, I Survived Real Estate.

Christopher and Bruce discuss the more on inflation, consumers and the idea of judges wiping out debt in cramdowns, the United States compared to Japan's economy, deflation potential in the United States (if any), GDP and the health of the Unites States, Bernanke and currently policy, employment numbers, excess and working through issues currently on the table, what would happen if the US re-adopted mark to market for banks, and of course, much more.

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Christopher Thornberg of Beacon Economics #161

This week Bruce is joined by Christopher Thornberg. Christopher is an expert in the study of regional economies, real estate dynamics, and business forecasting. In 2006, he co-founded Beacon Economics which is an economic research and consulting firm that specializes in real estate markets, local economic development, and public and private policy issues. Christopher has also been part of the Norris Group’s award-winning fundraising series, I Survived Real Estate.

Christopher and Bruce discuss the current state of the market and whether the market is truly experiencing a comeback or is it completely manufactured. Christopher goes into detail about Bernanke and his current handling of the market. Government actions has delayed the inevitable and Christopher and Bruce discuss what the different strategies have been and how effective they have been and how much longer we should expect to see these manipulations.

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Paul Bertrand of the FBI #157

Bruce Norris is joined by Paul Bertrand, supervisor for the Los Angeles Mortgage Fraud Division in the FBI. Bruce and Paul discuss mortgage fraud including the hot topic of short sale fraud and new trends the FBI watches for in California and around the US.

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Joseph Magdziarz of the Appraisal Institute #115

Bruce Norris is joined again by upcoming 2011 President of the National Appraisal Institute, Joseph Magdziarz.

Bruce asks Joseph why he’s teaching appraisal courses in foreign countries. Joseph says numerous foreign countries are asking for the education so they can find out how to write an appraisal that could be understood globally. This will allow them to participate in the global mortgage market.

Joseph says the ultimate goal of an appraisal is to assign a value of an asset in the now. An acceptable margin of error for an appraisal is 3% but no more than 5%. The definition of market value is a buyer and seller under no undue stimulus coming to an agreement on a price to be paid for an asset. Joseph talks about REOs and short sales and how they should not be factored in to appraisals as they are liquidation prices.

Bruce beings up this appraisal issue which investors are having to deal with when they purchase these types of homes and then repaire them in California. Joseph says the banks should not consider REOs and short sales market value because of the repairs being done and the risk the investor takes in this market. Bruce asks if the new buyer of a fixed home is setting the new market value. Joseph says in the open market, it should but the appraisal might be different because of all glut of REO comps. Often times, appraisers are not being fair and many properties are being undervalued which is a problem.

Bruce brings up the typical scenario of The Norris Group when dealing with appraisals in the current California real estate market. TNG purchases the distressed, “as is” property from auction or from an REO agent and spends time and money upgrading the property. If TNG gets multiple offers, why isn’t it considered market value?

Joseph says competent appraisers will say that that does create market value. Submitting those back up offers could really help force the appraisers make that market adjustment.

Bruce asks if there is no similar inventory, what should investors do? Joseph says hire someone with specific experience with an MAI or SRA designation. Bruce talks about an area in Moreno Valley and the glut of vacant REO and “as is” inventory. When TNG fixes something, the appraiser is typically not getting cooperation because there is no similar substitutions in the market. We’re the only fixed up property.

Bruce talks about the appraisal business in 2004-2005 and how they were feeling pressure to get to a certain high number for refinances. Bruce asks if there is now the opposite pressure from banks wanting to loan less thinking the value will continue to decline.

Joseph says lenders can make loans in a declining market at today’s value and shouldn’t feel like there’s excessive risk if there are the three C’s: collateral, capacity to pay, and credit rating. Joseph says he heard that appraisers were using foreclosure and short sales and these DO NOT make market value so are inappropriate. Liquidation value is a better term for these types of inventory.

Bruce brings up review appraisals and how the original appraisers are worried about coming in too high for fear of being blacklisted from doing work for a certain account if the numbers are adjusted. Bruce asks about the review appraisal process and what authority they have to adjust prices the way they do. Joseph says these review appraisals have to come up with their own opinion but to arbitrarily adjust a number up or down 10% without just cause would be a violation. Many times these reviewers are not following the same license laws the appraisers are required to follow. Appraisers could ask for the review appraiser to send to them the review but most probably won’t. They are entitled to a copy of the review appraisal.

Bruce asks if the review appraiser goes out into the field. Joseph says they often do the review behind a desk using AVM. This is not the same and is just an estimate. Joseph says many lenders might be looking for quick and cheap. Joseph says the lending institution or review company they pay does the review appraisal which is also causing a problem.

Bruce asks how difficult it is for appraisers to work in a market with such wide swings in price, sometimes monthly. Joseph says he doesn’t know how they work in states like California. He says only the best people should be doing these appraisals. People need to use a professional appraisers and not AVMs or BPOs.

Bruce asks if there are new rules for appraisals coming down the pike. Joseph say the Home Valuation Code of Conduct (HVCC) says any new loans that are purchased has to have an appraisal and any existing can be less than that. A borrower is also required to get a copy of the appraisal. Joseph said the use of management companies is causing a problem because they are keeping part of the fees that should go to the appraisers so they may be spending less time doing a proper job.

Joseph says an appraisal is typically good for six months but in this market, it’s not as relevant. Bruce asks about improvements on homes above and beyond like pools and upgraded hardscaping. In an inactive market, it’s very difficult to assign a value to these extras. An appraisal will have to try and find similar comps. In this type of market, it is possible for these extras to result in little extra value.

Bruce asks about “standard 3.” Joseph says they are 10 sets of rules that govern the appraisal industry. For more information, visit appraisalinstitute.org.

Joseph C. Magdziarz, MAI, SRA is the 2009 vice president of the Appraisal Institute. He will become the president elect in 2010 and president of the Appraisal Institute in 2011.

Magdziarz has been an active member of the Appraisal Institute for 38 years. He has served in a variety of capacities at all levels of the organization.

At the regional level, Magdziarz has served two terms as Regional Vice Chair and two terms as Region III Chair. He has also been a regional representative for many years. On the national level, Magdziarz served two terms on the Appraisal Institute’s National Board of Directors. He has served as Chair of the Education Committee for five years and has also chaired the National Audit Committee, Instructor and Faculty Committees, and Education and Publications Committees. In addition, he has served on a number of project teams. Presently, he is serving on the ADAPT (MAI demonstration report alternative) project team and the International Education and Designation project team.

Magdziarz has been President of Appraisal Research, Inc. in Rockford, Illinois for 38 years. He resides in Rockford, Illinois with his wife Sandra of 41 years and his bulldog Bella.
Magdziarz is an approved Appraisal Institute instructor for 26 courses in the Appraisal Institute’s QE, AE, CE, and USPAP curriculums. He has also had international assignments in Naples, Italy; Istanbul, Turkey; Seoul, South Korea; and Beijing, Tianjin, and Shanghai, China.

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