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I was recently at two real estate conventions in two very different cities. The first was in Tampa, Florida where CPM and CCIM designees met to hear speakers, take classes and network. The second was the National Association of Realtors annual convention in New Orleans, Louisiana. This is not a tale of two conventions but rather a tale of two cities.

The convention center in Tampa is on the waters of the Gulf of Mexico in a revitalized downtown neighborhood with gleaming new hotels. It is close by a beautiful old neighborhood of early 20th century homes off Bayshore Boulevard. When we arrived on Thursday afternoon a planter, on one of the streets had been hit by a car destroying it. By Friday morning the mess had been cleaned up, a new planter was in its place with plants and flowers.

Tampa is a lovely city with great neighborhoods and new construction going on all around. Downtown parking lots have been and continue to be turned into new office and residential buildings. You see vitality in this city and a municipal government that is working.

The convention center in New Orleans is on the Mississippi. It is about a mile from the French Quarter close to I-10. Obviously, it has been cleaned up substantially since its infamy during Katrina. There are hotels all along the street opposite the center. At first look, you would never know that this city was completely devastated a little over a year ago.

But look past the gleam of the French Quarter and the Convention Center, and you see how much still needs to be done. The Riverwalk Marketplace adjacent to the convention center is half empty. The stores across from the French market in the French Quarter have "For Rent" signs in the windows. This is a tourist town which survives and thrives from an economy largely built on tourism. Without those visitors, there is great hardship for thousands of citizens.

One cab driver tells us that his wife and children are in Atlanta so his kids can attend good schools. His mother was evacuated to Vicksburg in the wake of the storm and is still there due to lack of housing. Another cabbie has had to hire an attorney to sue the insurance company to get a payment for his still destroyed home. Our waiter at dinner one night says he has just flown in from Chicago for the convention. There is not enough business for him to come home full time. But in the face of it all, the resilient spirit of the New Orleaneans we met was striking. They love their city, and they love the people who visit their city and love it too.

The difference in the two cities is the difference between a government that works and one that doesn't. Tampa, Florida has a state and local government that functions. New Orleans, Louisiana has a government that doesn't. While the U.S. tries to instill a workable government in Iraq, how about the Feds doing the same right here at home.

I am amazed how much e-mail has revolutionized our working lives. There is no more waiting days to speak to someone on the phone, and so the amount of time saved playing phone tag has been enormous. E-mail is also a much more exact form of communication. The chances of misunderstanding each other are far less than with voice communication.

With all new forms of technology, there is a learning curve. E-mails are forever. If you write something, you should expect that it becomes a record. With conversations either by telephone or in person, two people may have different recollections of what were discussed. It is harder for that to occur with written communication.

Real estate is a business that demands accuracy. Written communication is always a better way to accomplish that. In the past, you could not always wait for a letter to get to you. When I began in business in New York City, the post office delivered to my office twice daily. If something had to be delivered within hours, there were messenger services which could get that letter from one part of Manhattan to the other. Then came FedEx with the promise of overnight delivery anywhere in the country. And, of course, there was the fax machine which revolutionized communication completely.

Now with the widespread electronic transfer of communications, the possibility of doing increased business grows exponentially. 98% of tenant communication is now done through e-mail. We deliver the same percentage of our rent bills to our tenants electronically. Almost all the buildings that I manage have computers, scanners and printers connected by high speed internet access allowing immediate communication with the building staff. The days of leaving messages on answering machines for building employees are passing rapidly. The building owners also receive monthly statements and other notices electronically.

That does not mean that face to face meetings and telephone conversations are not necessary. E-mails and rapid electronic transmission of data are only tools that allow for better use of time. But, at the end of the day, whether we make widgets or deal in real estate, increase productivity means better return.

Foreclosure rates are up 43 percent in third quarter 2006 compared to the same period last year, according to RealtyTrac. Florida and

California lead the nation in numbers of foreclosures, followed by

Texas, Michigan and Ohio.

Read the full story:

http://www.planetrealtor.com/florida/news/daily/news.cfm?article=n3-11012006

Investment Fundamentals Are The Key

Final article in a series…

October 18, 2006

Have you ever been up late at night and watched an informercial which promises that you can buy property with little money or no money down. Next comes the claim that you can turn around and sell it for double the price -- sometimes without even closing on the property. In real estate jargon, this is known as flipping a property. Can you really make your money by doing this? Well the short answer is yes….once in a great while.

When real estate investment begins to resemble "Let's Make A Deal", it is no longer real estate investment, it is gambling. Real Estate investment is analysis of a property to see whether there will be a sufficient return on your money. It is done by analyzing risk and evaluating it against the return you could get from other forms of investment. You compare one type of investment against another to see if the rate of return is worth the risk.

For example, if you invest your money in U.S. government securities you will receive a lower rate of return than if you invest in corporate bonds. Even with corporate bonds, a Fortune 50 company will pay less than a company whose bonds are not as highly rated.. Even certain real estate investments will have different rates of return depending on tenancy and location among other factors.

When I stated that you can occasionally flip a property to make a profit, I was not encouraging you to go out and spend your time trying to identify such a property. Speculating, unless you are very lucky, will most likely not reap the rewards you anticipate, and you will have spent valuable time in the identification process.

My experience has taught me that there is no replacement for remembering the basic fundamentals of investment. You must do your homework. Investigate the property to make sure it is economically feasible. Run your assumptions by your attorney, accountant and investment realtor and only then put your money down. If you are spending your time looking for a shortcut to building your portfolio, you will probably regret the decision and find the result disappointing.

Timing Your Real Estate Investment

Article 7 in a series….

October 2, 2006

Is this the right time to invest in real estate? As I write this in October 2006, it may seem to be a very tough call. Some people call this a buyer's market because of the glut of inventory. Some say it surely is not a seller's market. I prefer to think of it as just a market. Isn't that what a market is? A market is nothing more or less than a place to trade a product.

What do I mean by that? Currently, buyers are not buying in most markets. Value has not yet reached a point where buyers and sellers have come to a consensus as to what property is worth. Are the prices of last year still valid now? A majority of sellers would tell you yes. While buyers obviously do not think this is true.

Prices may have to fall lower before buyers have the confidence to get back into the market. It has been my experience that once prices have fallen, it takes buyers several months at this reduced price level before they move back into the market. The psychology of "I don't want to pay that price when it may be less in the future" reigns.

Then what does an investor do? He/she continues to look for properties that make economic sense. An investment in real estate is a good one when there is an acceptable return on the cash invested. An investor must continue to look for deals in sellers' markets, buyers' markets and non-markets. The economics of a good deal are the same in all markets.

People "get burned" when they invest in hope and not reality. If you have a property that costs $X, and after all expenses, you receive a return that you find acceptable then you should invest at any time. The trouble comes when you hope your investment will pay a return in the future, which is more gambling than investing. The reality of real estate investment requires that an investor does his/her homework, runs the numbers, checks the facts and consults with his/her advisors. Opportunity for investing in real estate is constant… it isn't cyclical when you base decisions on actualities and not hope.

September activity continued to be strong. Tom Campenni leased 2000 sq. ft. in a Manhattan office building to a restaurant operator and 10,000 sq. ft. to Super Textiles, a textile importer, for 5 years.

Tom Campenni, CPM, CCIM, is managing various capital improvements for properties under his management. The total value of the improvements is $12 million, and one of the projects is in an historic landmark residential building on the Upper West Side.

FULL SERVICE PROPERTY MANAGEMNT

Article 6 in a series…

September 18, 2006

What is full service property management? Does my real estate portfolio need it? In order to know whether you need full service property management, you have to know what it is. There is no one definitive answer as to what full service property management is, so it is important for you to understand what any firm you are considering will do for the fee charged. The responsibilities of both parties are usually spelled out in the management contract.

Our firm defines full service property management as acting as an agent for the property owner and standing in his shoes. Here are some of the functions I assume for my full service clients:

1. Bill the tenants before the first of each month and collect the rent and other charges

2. Pay all bills for the property

3. Prepare a monthly statement for the owner and his/her accountant with an individual accounting for each unit and a listing of each check written plus a general ledger

4. Manage all tenant relations, including the handling of their complaints and repairs to their units, offices or stores

5. The supervising of the property's staff including the preparation of their paychecks and remitting all payroll taxes and the filing of mandated forms to the appropriate government agencies

6. The bidding, hiring and directing of contractors to perform work on the property (when the anticipated amount of any one project is over a certain amount then I would consult with ownership)

7. Soliciting bids to meet the property's insurance needs

8. Procuring new tenants and negotiating leases on behalf of the Owner

9. And anything else needed to successfully manage the property to increase the value of the asset

Fees for full service management are usually based on either a percentage of the rent and other charges collected or a flat fee. Individual fee structures and arrangements are determined in advance with each client.

For my fee the property owner has the benefit of my expertise and is free from performing the mundane tasks of ownership. Professionally managed real estate assets should increase in value faster and be better maintained than if the untrained investor were doing the management.

TOM CAMPENNI AS YOUR REAL ESTATE ADVISOR

Article 5 in a series…

September 4, 2006

In past articles, I have been discussing in general terms the functions of a real estate specialist. At this point, it is time to get into specifics of what I can do to help you increase the value of your real estate assets. Real estate is a unique investment, differing from other financial investments such as stocks or bonds. While with most other investments you are at the mercy of others to shape your investment, with real estate you are in charge of your destiny. Because of the amount of control, I think real estate is a great investment. For the vast majority of us who would own stock in a listed company such as G.E., we have no say on the running of the company. When you own a piece of real estate, you get to call the shots. But, that doesn't mean that the wise investor doesn't have experts helping him make those decisions.

You should never buy an investment property without doing an analysis of its financial and physical characteristics. For the most part, the larger and more expensive a property is, the more complex it will be. If you are buying a property with tenants, it is important that you have an understanding of the terms of the leases in effect. What are the laws governing the rights of tenants and owners? Are the units governed by "rent controls"? If an apartment is vacant, what do you need to do in order to re-rent the unit. Is the roof sound? All of these questions and a thousand others should be answered before buying. Those answers come as a result of completing a property analysis. I have completed many comprehensive property analyses, and could save you from making a bad investment or putting your money into an investment that does not meet your objectives.

For clients who prefer to handle the bulk of their own property management, I can be available to you for specific projects. You may have a question about whether it is more cost-effective to have your maintenance person do a specific project or call an outside contractor. How you should handle a particular tenant dispute? Consult with you in the selection of a contractor to put on a new roof. Assist you in the design of a marketing program for your empty space. In these situations, I am acting as your consultant, and you would have my expertise only at the times you need it most.

Over the years I have had a number of contractors as clients. These fellows didn't need me to help them with the physical parts of the investment, they wanted my help with the financial aspects. In some cases, I would set up filing or lease renewal systems. They needed guidance with rent collection and tenant forms. I could help with selecting computer accounting programs for their property management. In some cases I would do the A/P, A/R and Payroll for owners. This could be helpful for condominiums and home owners associations.

If you own a commercial property of any size, my firm will tailor a program that meets your needs.

We touched on full-service property management earlier in this article. A more complete description will be the topic of Article 6 in this series.

Tom Campenni, property manager for various Manhattan office buildings, represented the building owner in leasing 6500 sq. ft. of office space to ASDI, Inc. for 10 years. In addition, Tom leased 4000 sq. ft. of office and factory space to CBZ1, a jewelry manufacturing firm, for 5 years. Finally, Tom leased 4500 sq. ft. of office and factory space to ATR Jewelry, Inc. for 5 years.

CHOOSING YOUR REAL ESTATE ADVISOR

Article 4 in a series…

August 21, 2006

Let me take this opportunity to discuss the credentials you should be considering when selecting a real estate advisor to help you increase the value of your real estate asset. As mentioned in earlier articles in this series, real estate is something that has to be constantly tended -- very much like a garden. It takes patient care and a level of expertise in order to achieve the best results. With proper maintenance, a garden grows more beautiful every year. Your investment will grow more valuable every year with a little "TLC" also.

I have been an active real estate investor, manager, broker and advisor for the past thirty five years. During that time I have been involved in the care of hundreds of millions of dollars of real estate. I have managed residential housing including high rises, garden apartments, cooperatives and condominiums. I have managed office, industrial, factory, medical buildings; shopping centers; and hotels. My experience spans every conceivable form of real estate ownership and property type in the United States today.

I have successfully been serving clients in my own firm since 1978. Some of the functions, I perform are:

Property Analysis

Real Estate Consulting

Pro Forma Statement Preparation

Property Accounting Services

Full Service Property Management

As a full time real estate professional, I have dedicated my professional life to achieving excellence in the real estate business. Presently, I am a licensed real estate broker in New York, New Jersey, Connecticut and Florida. I am also a licensed Property and Casualty Insurance broker in Florida and New York. I currently am a member of the National Association of Realtors, The Florida Association of Realtors and the Realtors Association of Martin County.

I have earned the coveted Certified Property Manager (CPM) designation from the Institute Of Real Estate Management after completing rigorous course work, examinations and real world experience in the ability to manage complex and a variety of properties. Further I am a Certified Commercial Investment Member (CCIM). There are 7,500 holders of the CCIM designation, which represents only 6% of the commercial real estate practitioners. This designation is for real estate professionals who have demonstrated, through class work, examination and practical experience, a thorough understanding of real estate as an investment focusing on financial and economic analysis.

I have also taught both real estate and insurance courses to students pursuing their real estate and insurance licenses, continuing education for licensees and the general public. In addition, I had a weekly radio program on real estate matters broadcast from New York City and contributed to real estate publications such as the Journal of Property Management and Real Estate Weekly.

As you can see with my experience and education, I have the tools to help you realize the potential of your real estate investment. My track record of success speaks for itself, and I am proud of the business I have developed. Plain and simple, if I didn't enjoy the real estate business, I would have found another profession by now. Let me bring my passion for serving my clients to work with you in realizing your real estate dreams.

YOUR REAL ESTATE ADVISOR

Article 3 in a series….

August 7, 2006

You now have your attorney and accountant ready to help and advise. You have identified your funds for investment. You have made the decision to look for that investment property. You think are ready to go, but you are missing a key member of your advisory team. Unless you are an experienced real estate professional or investor, you are still missing the one expert that can determine whether you are successful or not, and that is your professional real estate advisor.

That advisor is not necessarily the broker who is showing you property. Depending on your needs, goals and level of expertise, you will need someone to not only help you identify the right property but also guide you with everything from day to day management of the property to advice on questions you will have on an ongoing basis. A real estate advisor brings his expertise to bear on making your investment increase in value.

The best time to contact someone who is a credentialed real estate professional is before you begin your search. You and your advisor will meet to identify strategies to implement a plan for investing in real estate that will meet the objectives you have developed. While usually considered a passive investment for income tax purposes, real estate is anything but that. It requires the right knowledge and constant effort to make sure your investment is successful.

Contrary to what you hear, making money in real estate is not only buying and selling but everything in between. "Buying Low And Selling High" is a great phrase but not very helpful in ultimately owning an appreciating asset. Most of my clients are families who are multi-generational owners of the same real estate. What they have in common is the ability to see the big picture. These people are not looking for the quick profit but, rather, in building wealth, and they have been successful in doing so.

Owning real estate has too often been depicted as an easy way to riches. After thirty-five years in the profession, I can assure you that it is not the case for the vast majority of individuals. While not necessarily a quick or easy way to wealth, it can be a sure one with patience and the right guidance.

In Article 4 of this series, I will explore in more depth how I can help you create that wealth.

YOUR ACCOUNTANT & ATTORNEY

Article 2 in a series…..

July 24, 2006

You have searched and found the perfect property. It's time to sit down with the other side and negotiate. Everyone is ready to proceed to the next step. You need an attorney and are now asking others for recommendations. You have put the proverbial cart before the horse.

Some will tell you that you don't need an attorney until you are ready to sign a contract. That is a mistake. If you don't have a good real estate attorney already, find one before the search for that perfect property even begins. Without a lawyer that you can call on for advice and clarification throughout the entire process, you can be in trouble before your deed is ever recorded.

When choosing an attorney, one of the most important factors to consider is his/her area of specialization…is he/she knowledgeable in real estate law and contracts. Your friend, the criminal attorney, who will represent you along with the thief and arsonist, is not doing you a favor by fitting you into his/her busy schedule. Your attorney must not only know real estate but also the local market. Just like politics, real estate is a local affair with different customs and practices.

Your attorney should answer your questions thoroughly and in a manner that you understand. You don't need or want someone who is condescending or provides information that doesn't make sense to you. Your lawyer should also return your phone calls or e-mails promptly. If you have to chase your attorney to get answers, get another attorney. He works for you -- not the other way around.

Another expert you will need is an accountant who understands the intricacies of real estate finance. Forms of ownership, mortgages and depreciation are just some of the accounting questions that you will face when operating real property. A financial mistake can be very costly to both your short term and long term objectives.

If you are not going to employ a professional management firm to do your bookkeeping, an accountant should be consulted in the best way of recording income and expenses for tax purposes. If you are going to employ third party management, then your own accountant is needed on a much more limited basis. Both you and your accountant should be receiving a monthly management statement, and your accountant should perform a test audit of your building records at the end of the year.

Both good accountants and attorneys are essential is deriving the most income from your real estate investment. Real estate is full of legal and tax headaches. No lay person can navigate government regulations, codes and laws without help. These two professional will prove invaluable over the years to you.

Real Estate & Wealth

Article 1 in a series...

July 2006

I have held a real estate license since 1971. I have seen markets rise beyond reasonable expectations and, conversely, I've seen markets come crashing down. People making fortunes in boom times and then going bust in hard times. People who "succeed" for a number of years and then who 'suddenly' fail. Why does this happen?

After more than 35 years of owning, managing and working in real estate, I know that there is no magic formula for making a killing. The main reason that people lose money is because they forget the fundamentals. Putting money in real estate is investing, not gambling in a casino. You don't calculate odds, but you do run cap rates, rates of return and after tax income. Those are the fundamentals of real estate investment.

The only way to consistently meet your financial objectives from properties is to look at them as long term investment. Even before a property is acquired, a comprehensive management plan should be written outlining how the property is to be managed and what you expect as a return. Included in this will be the time frame that you intend to own this property. It is, however, important to understand that the plan is constantly changing to reflect changing market conditions as well as the investor's own financial condition. The plan is written to help you focus your strategies to be successful. Updates to the plan will be made to reflect changing market and personal conditions.

Initially you may have wanted to realize 'X' income and 'Y' increase in value with a view to selling after five years. To your good fortune, you have reached both goals within two years, but does that mean you will sell the property now? A good investor will adjust his/her goals to reflect the changing market. A good real estate advisor will provide the investor with the information necessary to make sound decisions regarding those adjustments.

As an investor, you should be wary of someone who tells you there is a magic secret to building wealth with real estate. The way to build wealth is some good analysis, hard work, long term strategic planning and having the right professionals to call on for help. Whether you are a novice or a seasoned real estate investor; the right attorney, accountant and real estate professional will be invaluable in increasing the wealth of your investment.

In the next article, I will explore how you can tap those professionals to help you succeed.

Tom Campenni, representing the building owners, leased 10,000 sq. ft. of office space to Oddcast, Inc., an interactive web design firm.

Tom Campenni, acting as the owner representative, leased 10,000 sq. ft. of midtown Manhattan office space to Carol DuPlaise, Ltd., a jewelry design firm.

In addition, St. Vincent Hospital renewed its lease for 20,000 sq. ft. of Greenwich Village office space. The lease duration is 5 years.