Seventh Post

Sustainable Development

In this video on One Bryant Park, the idea of a green skyscraper is brought up. This idea has never before crossed my mind. One normally views skyscrapers as enormous energy consumers and nature destroyers. The sole fact that a skyscraper could go green is such an interesting idea. The air comes in from outside and is cleaned before it is released back into the atmosphere. The rainwater will be stored in tanks to be reused. Heat resistant glass lowers the electricity costs of the building. So many people today act as if it is not economically feasible to build green. The fact that this building is being constructed in the busiest region in America to extreme heights shows that they are wrong.

My favorite sustainable development is the Dresden VW Gläserne Manufaktur (Transparent Factory).

The city of Dresden is adamant about staying green and looking pristine. They would not settle for a factory in their beautiful city if it did not uphold a perfect standard. The VW company did just that with this building. 

In this building there are multiple green additions:

• The glass is spaced 2 feet apart to insulate the factory
• A speaker system protects birds by scaring them away before they fly into the glass
• No smokestacks
• No loud noises
• No toxic byproducts
• Electric "CarGoTrams" bringing parts to the factory

Sixth Post

A New and Interesting Real Estate Trend

The real estate world is full of new and innovative ideas, some of which fail and some of which boom! One fun and new style that I have seen popping up around cities is the rustic Japanese style homes. Japanese homes are known for their intricate designs, intriguing usage of wood, and spacious atmosphere.

 This piece of real estate is a prime example of what I mean. One can easily see how the wood is placed vertically on one side and horizontally on the other, how it is contrasted with the darker wooden fence. This artistic design sets the house apart from any other. Looking at the first interior picture shown on the site, it is clear that the house is extremely spacious. This mimics the spacious design of homes typical to Japan. Even the bathtub has an exotic simple placement with an outstanding view outside. This trend is steadily rising, and an ambitious real estate investor should set their eyes on this market.

Fifth Post

What Would be a Good Investment?

If I was going to invest in a certain type of property in Bryan, TX; I would invest in multifamily residential property. 

In the Comprehensive Housing Market Analysis posted for College-Station-Bryan, the economic conditions are shown to have been steadily improving with a 1.9% increase in employment, or a gain of 1850 jobs; whereas in previous years, there was only a 0.4% increase with 400 jobs. The economic data looks good, but that is not all. Looking specifically at the multifamily building permits issued in this region (see figure 9 on the link), the data shows an estimated rise. The information seems to indicate that this may be the market that we need to invest in.

Fourth Post

Foreclosure!!

A Houston family experienced a nightmare when dealing with Wells Fargo around 2010. They were told that when they purchased the home, the title of ownership was never delivered to Wells Fargo. This occurred because the title company went into bankruptcy after the "purchase" and did not ever send the paperwork. Several payments later, when the family found out that Wells Fargo technically still owned the house, they were told that they would have to pay a price $30000 more than the original price of the house upon the sale. In the end, Bank of America paid to correct the problem to save face from the media backlash. This is just one good lesson to learn. Make sure that you receive the title to a property that you are paying for.

While this case did end up being remedied, if we look at the details, this two year case was an example of judicial foreclosure. This is called so because the foreclosure deliberation is only finalized after a court of law makes the decision.

Third Post

"My Hometown"

I was born and raised in a town not too far away from Texas A&M called Bryan, Texas. This town has grown considerably in my lifetime. 

Growth Patterns:

In the past decade, Bryan has seen a ton of improvements. Some examples that instantly stand out are as follows: the development one of the best country clubs in the country with a top ten golf course, the uprising of the American Momentum Bank corporate headquarters, the dramatic improvement of the entire downtown area, the rise of companies all down Briarcrest, the growth of a renowned winery, and the addition of two more high schools. The city has a stigma of being a dilapidated town, but this stigma is sure to expire before long.

Demographics:

The city of Bryan has a population of 78,061.  The exact racial makeup of the city can be seen in this screenshot taken from the Census. This diverse population is a boon to the cities rapid growth.

Economics:

The median household income of Bryan is $37,763; quite a bit lower than that of Texas. Bryan also has 27.4% of people below the poverty level. This is a drastic problem that is being combated even up to a national level. The many giving societies around the city such as churches, food banks, and student organizations are assisting these people to a high degree. Growth takes time however, and I believe that the city of Bryan will tackle these problems over time, and that they have already improved these problems slowly in the past decade.

Psychographics:

The lifestyle and culture of Bryan, Texas involves a relaxed and easy-going atmosphere. People seem to socialize a lot more here than in other places. It might have to do with the friendly nearby college atmosphere, or with the rejuvenated downtown Bryan pedestrian atmosphere, or with the friendly local businesses around town; but something about the city just makes it pleasant.  

Pictures:

Second Post

Real Estate versus Real Property

Most people do not truly understand the difference between real estate and real property. First let's take a look at some definitions:

• Real Estate is the combination of land and its man made improvements
• Real Property is the combination of real estate and the "Bundle of Rights."

So what is this bundle of rights that makes real property different?
The bundle of rights includes the rights to possess, control, enjoy, exclude, and lastly dispose.
Basically, real property includes intangibles which are not defined when valuing real estate.

A Real Life Property Dispute

Kenneth Robinson from Flower Mound, Texas was able to claim property that did not originally belong to him. The owner who had originally abandoned his property for over ten years was notified of this predicament, and via "adverse possession" lost the dispute and the property. This process can be an eye opener for Texas residents.

Private Restrictions

Private restrictions on real estate are not created by government agencies, but rather by land developers. These restrictions can be viewed as beneficial and a hindrance at the same time. These restrictions are divided into subgroups called conditions and covenants. Conditions are promises to NOT DO something, whereas covenants are promises TO DO something. The difference has to do with who enforces the restriction in the case of a breach. 

So why are they viewed as beneficial and hindrances? Well, one signs into the deal for a reason. For instance, someone may want to live in a neighborhood with many trees. The hindrance would be the inability to cut down a certain number of trees on one's own property, however the benefit would be the lovely view that is only possible when everyone in the vicinity abides by the restriction.

Other examples of private restrictions which I did not dive into are as follows:

• Liens
• Easements
• Profit a prendre
• Encroachments

A Real Life Private Restriction

Most people are familiar with the famous case in which an army veteran could not post an American flag outside of his house. This man must not have scrutinized the private restrictions he signed into when he bought the house. While most people dislike the anti-patriotism blatant in this example, a contract is a contract until a judge intervenes. The benefits may be hard to see in this example, but the idea could have been that it is not necessary for individuals to put flag poles around their homes because it would clutter the view of the neighborhood. Instead, the neighborhood could post their own grandiose flagpole at an entrance for example. This may or not have been the case in this example, as the media more or less exploded on this instance making it difficult to discern right from wrong. 

Public encumbrances

A public encumbrance differs from a private encumbrance in the fact that it is enforced by a public domain. This includes actions such as:

• Eminent domain
• Zoning
• Taxing
• Escheat

Eminent domain is the most controversial of all public encumbrances. Most people understand it to be extremely negative, but for some it can be the exact opposite. Eminent domain is when a government entity takes one's land under the preface that the government technically owns everyone's land in the country. In a time of need, the government may take this land under eminent domain.

Real Life Example

Most people are familiar with Minute Maid Park in Houston, Texas. This stadium brings in millions of dollars for the communities and has boosted the economy in the region. The region in which it was built was rejuvenated because of this government act. Some people lost their homes, but they were repaid and this economy booster has inevitably caused many others to NOT lose their homes in the long-run. 

First Post

 Howdy!

My name is Bobby Putz, and I was born and raised in the Bryan/College Station area. I am planning on graduating in May 2014 with a degree in Business Honors and Finance.

In my free time, I hang out with all of my corps buddies and do what college students do. Aside from the normal stuff, I am fascinated with traveling around the world.

In our class, I hope to understand all of the essential knowledge in real estate. There are so many key words and elements that are used in every day conversation in the business world which I desire to learn and understand after taking our class.

My career goal for the short-term is to graduate on time and get a job in Germany at a bank. My long-term goal is to get settled with a family in any part of the financial sector and have the ability to travel across the world as much as possible.

Some unique things about me are that I have a student's pilot license and have flown planes by myself. I also have a girlfriend who is from Germany and still living there. I also speak German which is definitely a plus!

My bucket list involves bungee jumping, skydiving, going to a world cup finals game, going to the Super Bowl, and seeing all of the countries in Europe!

My Favorite websites are as follows:
Reddit.com
Facebook.com
Google.com
Online.wsj.com

The most fascinating parcel of real estate!

My favorite piece of real estate is in Dresden, Germany; and is known as the Frauenkirche or "Church of our Lady." It is 96 meters tall and in the center of the Altstadt in Dresden. This church has been visited by millions over its lifetime. The church meant so much to the people of the surrounding area. When the controversial firebombing of Dresden occurred, the Frauenkirche was one of the targets. Immediately after its destruction, the citizens of Dresden set forth a plan to rebuild the church. They took all of the old bricks that were still structurally stable and scanned them into a computer system to determine where they went on the blueprints. Now, the building has a speckled color scheme, because a big portion of the outside wall was built with the original bricks. It is a wonderful sight to see at the heart of Saxony.