Feels Right.

By Buz Hoffman, President, Lakewood Real Estate Solutions

December 9, 2011

Got a story I’d like to share with you. The kind that fits right into the holiday season. Right Residential is a company we established recently. It buys foreclosed homes, reconditions them in the Lakewood style, and sells them at terrific prices.

It’s been doing well. But business success is not what this story’s about...

Recently, we discovered a great Naperville home at auction. We placed the high bid, and won the opportunity to own it.

While waiting for the court date which would approve our purchase, we contacted the residents to advise them of next steps.

All was not what we expected.

John and Ann had been misled by their lender, and had no idea what they were facing.

A while back, they’d experienced a fire, and their insurance company gave them a check for repairs. The couple hired a contractor who took this money, then went out of business. To make the home livable, John and Ann used their own funds, and this put a strain on their making mortgage payments.

They believed they’d reached an understanding about this with their lender—one of the big ones. The lender told them their home would not be foreclosed while mortgage details were re-worked.

Didn’t happen that way.

Unknown to John and Ann, their home was auctioned. The couple didn’t even know it had been sold until we contacted them to tell them that Right Residential bought it. We quickly understood that this was not a fair deal for the owners. We wanted them to keep their home.

We instructed them to attend the upcoming court date. There, they were able to explain their situation. We were refunded our purchase price. And John and Ann will be in their home for the holidays.

An ending to a story we’re proud of.

The Lakewood people behind Right Residential have always done business with a human touch. It’s not only the Right way. For us, it’s the only way.

Happy holidays.

Character.

By Buz Hoffman, President, Lakewood Real Estate Solutions

October 31, 2011

The latest George Clooney movie, “The Ides of March,” made me think. Based on the previews, I figured I’d like both the film and Clooney’s character, a presidential candidate.

I was half right.

It just occurred to me in writing the phrase “Clooney’s character” that the word “character” has more than one definition. It’s the fictional role played by an actor, of course. But in this movie—and in real life—character has a larger meaning.

Ultimately, it’s what “The Ides of March” is really about.

Many people will talk the talk about integrity, dignity, honesty and trust, but when their backs are to the wall these ideals get scarce. I don’t want to spoil the movie’s ending. So we’ll leave it at that.

But, the one bright moment in the film for me is when Clooney’s campaign manager, played by Philip Seymour Hoffman, cuts through a messy situation by saying...

“There is only one thing in this world I value...which is loyalty. Without it, you’re nothing.”

I liked that. I liked him. (This has nothing to do with his last name being Hoffman.)

In our world of real estate, business and banking, we’ve seen a lot of people who’ve had their backs to the wall. I don’t think our industry is as vicious an arena as presidential politics, but it can be pretty challenging, as you know.

I’ve seen people who’ve had to dig deep and figure out how important integrity and character are to them.

I’m proud that so many people we’ve dealt with over these challenging last few years have come through loud and clear.

I’ve seen bankers, developers, finance pros, associates and employees demonstrate how greatly they, too, value loyalty.

They’d like Philip Seymour Hoffman’s character in the film. And he’d like them in return.

I give “Ides a March” a qualified thumbs up.

You’ll come away somewhat cynical about politics. But that message about the value of loyalty will make you feel good.

Now, if only they had better popcorn at my theater...

Eyesores Make Me Sore.

By Buz Hoffman, President, Lakewood Real Estate Solutions

September 2, 2011

In the first half of this year, there were more than 21,000 foreclosed homes in Cook County, and nearly 3,000 each in DuPage, Kane and Lake Counties. McHenry had almost 1,500.

That’s more than 30,000 homes, and remember — we’re talking just January to June.

This is a problem made worse when nobody takes responsibility for the foreclosed home’s upkeep. An article in The Daily Herald on August 28, 2011 outlined the problem pretty well, and it can make your blood boil.

The whole mortgage meltdown era has been bad enough, but when abandoned homes turn into eyesores with untended landscaping, open manholes, burst pipes and mold inside, the cost in value that should have been limited to that single address spreads to the community.

According to the Herald story, when a lender expects a big loss in completing a foreclosure process, an abandoned home can sit in limbo for years.

If local authorities step in to prevent an unkempt home from ruining a neighborhood, they incur costs. These might be attached as a lien, but that’s just kicking them down the road. Ultimately, neighbors’ taxes could go up.

So, yes, I’m sore. Not just about the eyesore of a home with its knee-high grass and animals scurrying around inside.

I’m sore about the way the foreclosure glut is being dragged out. Bureaucratic roadblocks and outdated “head-in-the sand” policies prevent clearing up the situation, and hold back the recovery of our entire industry.

Anything positive to say about this? Yes.

There are some smart, highly experienced real estate professionals who are getting into the business of buying the best of the foreclosed homes, reconditioning them, mowing their lawns, painting them, and selling them to families at bargain prices.

That takes a “sad song and makes it better,” as Paul McCartney once said. But this isn’t happening everywhere. And it’s not happening enough. 

The High Cost of Indecision.

By Buz Hoffman, President, Lakewood Real Estate Solutions

August 9, 2011

As downgrades make news and history at the same time, I think about how important timely decision-making can be. It can be unfortunate to make the wrong decision, but it can be disastrous to delay and make no decision at all when the situation demands action.

I won’t add to the noise coming from CNN. All I can give you is my take from this corner office, in this corner of the economy. There are stalemates in congress. But, there are also stalemates closer to home.

Some “decision-makers” in the housing community have stalemated themselves, and others, by not making decisions. Rather than putting bad assets in the rear view mirror, they continue to hold them, debate about them, and lose sleep over them. This adds to the gnawing problems affecting our industry and the economy.

By contrast, associates who have won our admiration in recent months have taken decisive action. They have divested themselves of assets acquired through good intentions and bad timing. They have moved forward.

We helped, in many cases. We’ve built out and sold homes that were at a standstill. We’ve turned land that had been a costly tax and loan-interest drain into a thriving commercial venture. And we’ve entered the rapidly growing re-sale market for newly affordable homes obtained through foreclosure.

Point is: sure, there are problems. But by taking action, they can be weathered.

I wish the country could learn a lesson from what’s been happening in the parts of our industry that are moving forward. Rather than staring at a political or economic impasse with the attitude of a deer in headlights, it’s better to act. Those in real estate who have done this are staying productive. Not to act decisively is just too costly.

You can see this by simply turning on the news.

Statistics Aren't Written on Anyone's Forehead.

By Buz Hoffman, President, Lakewood Real Estate Solutions

July 8, 2011

There’s been a lot of talk in the news lately about negative statistics relating to home sales.

Sure, the percentage figures show some steep drop-offs, and they’ve been doing this for quite a while. But there’s always been a difference between statistics and real people. I prefer people.

And people ARE looking for homes. They’re not walking around with the word “statistic” pasted on their foreheads.

They’re real people, with real needs, hopes, dreams, and real buying power. Sure, there aren’t as many of them in the marketplace as there were before the downturn, and, sure, their buying power is more modest.

But, there are still lots of people. And as long as they’re out there, we’re not going anywhere.

One quick look at what I’m talking about....

Take the month of May, 2011. In it, around 500,000 Americans bought new or existing homes.

This represents a percentage drop from an index. But let’s not look at the negative side of this.

Instead, let’s realize that it’s FIVE HUNDRED THOUSAND sales.

People still need homes. Negative news is a bummer; I don’t listen to it any more. I’m staying positive.

Lakewood’s team has switched gears, and we feel good about it. We’re not developing communities of hundreds of new homes; that market’s on hold.

Instead, we’re finding ways to participate in the activity that’s out there. Because, even though the numbers are down, the opportunities are up.

For example, we’re helping distressed communities sell much-needed new homes to people who are thrilled to find them at bargain prices.

The developers and lending institutions behind these communities are equally thrilled to see movement, and recoup some of their investments.

We’re also looking at opportunities in the foreclosed home re-sale market. This is just another way to offer affordable homes to people who need them.

For us, it’s always been about that: “...offering affordable homes to people who need them.” That’s our driving force. And why we’re here to stay.

What's Old is New Again.

By Buz Hoffman, President, Lakewood Real Estate Solutions

June 11, 2011

Back in the 1950s and ‘60s, many families chose basic, affordable homes in friendly suburban neighborhoods. People didn’t live over their heads, and they were generally pretty happy.

The homes I’m talking about had all the necessities while remaining simple.

They might be considered somewhat small by standards that were to come along in the think-big ‘80s and ‘90s.

We in real estate have good reason to look fondly on that unpretentious era in real estate.

I didn’t say look “back” fondly.

At Lakewood we’re not in the mood for backward glances. We’re in the mood for constructive new business. Our team is looking forward.

Actually, we’re looking at right now.

Today, we’re taking a big interest in smaller homes with smaller prices.

This category represents an active, bright spot in a marketplace where so many other housing categories are on hold.

And this niche is right for us. It’s our original one: basic, affordable housing.

We understand how to provide homes that offer the necessities families really need, without breaking the bank. Anybody’s bank.

We’re going to find houses that are right for a clearly defined market segment: people who appreciate the basics.

These people are out there in significant numbers. They need us. We need them.

We’re not going to suddenly get big by doing this. We’re not going to make the front page of the Wall Street Journal.

But we are going to put sensible homes on the market, and they’re going to have the Lakewood touch.

No other real estate team is more qualified to provide housing that’s practical, livable and affordable, all at the same time.

Just watch.

We’ll keep busy doing what makes us happy, and what has always made us happy. It’s right for us. It’s right for the marketplace.

Vision Quest.

By Buz Hoffman, President, Lakewood Real Estate Solutions

May 5, 2011

I used to be on the wrestling team. You get good experience on a wrestling team.

Today, in the real estate business, we’re wrestling with a lot of different things.

I learned from my team days that sometimes there’s a win and sometimes there’s a pin. Nobody likes getting pinned.

Over the last few tough years in our industry, it’s been hard to avoid getting pinned. During the downturn, everyone saw a lot of really good companies and really good people go down for the count.

But individuals can do amazing things in business, just like in sports.

I’m reminded of a scene in one of my favorite movies. It happens to be about wrestling: the 1985 film, “Vision Quest.”

In it, a man describes how he’d been inspired by watching the famous soccer star, Pele, kick a ball backwards over his head to make a goal.

This was a macho guy talking. And as he described Pele, he got tears in his eyes. He said something about how it made him proud to be a human being, since a human being could do such a thing.

I’m proud of the things that we see happening in real estate. And really proud of the things that Lakewood has been doing.

We’ve been on the phone a lot, and we’ve been in meetings a lot, too. These activities are a form of wrestling.

Wrestling to make decent deals, wrestling to keep things innovative, wrestling to win as things evolve in our business, wrestling to avoid the thought of a pin.

This got me thinking about the wrestling I used to do on a mat. I won a few matches back then. I completely understand the scene in Vision Quest about the man who was proud to be a human being because of a sports move done by Pele.

It wasn’t really about Pele. Pele wasn’t even a wrestler.

It was about doing something amazing. Rising to meet a challenge. Performing like a pro.

We’re all doing some amazing things these days, whether we’re wrestlers or not. You are. We are. Everybody who is hanging in there and moving real estate forward instead of letting it stand still.

Makes you proud.

I Love Lucy.

By Buz Hoffman, President, Lakewood Real Estate Solutions

April 8, 2011

Rather, I love something she said: “If you want something done, ask a busy person to do it.”

Sounds more like Ben Franklin. But no, it was Lucille Ball. You can look it up.

I was thinking about that old adage the other day because I’ve been concerned about people in our industry who are not as busy as they’d like to be.

Problem is, when we sit around waiting for things to get better, they don’t. Bad mortgages won’t go away. Foreclosures won’t disappear. Empty homes won’t sell themselves.

My passion in this business has always been to make affordable homes available, so all families could own a piece of the American Dream.

Today, the way to do that has changed. Look at the numbers for housing starts, existing home sales...new home sales. Better yet, don’t look. No need to wallow.

Instead, look for ways to become Lucy’s “busy person.” That’s the way to get things back on track. Being busy will do good things for you, for your company, your associates, your customers...the whole economy.

We know. Lakewood is busy finding new approaches to affordable housing. We’re building out communities for banks. We’re also busily purchasing foreclosed homes, rehabbing them, and presenting them to buyers.

Things are getting done. Like our shopping center in Long Grove where Sunset Foods is making a lot of people happy, including the guy who owns the land.

The point is, we’re busy.

I hope you’re getting busy, too. That’s the way we’re all going to get things running again. Lucy wasn’t just funny. She was right.

Their Name is Ready-Made.

By Buz Hoffman, President, Lakewood Real Estate Solutions

March 16, 2011

I once wrote about how the Bears were making me bullish. They didn’t go all the way, but got farther than I thought.

(Should’ve kept Green Bay out of the playoffs. But still, a respectable season.)

They were an underdog. No big expectations. And they surprised me. Made me bullish about what we can do, ourselves.

Which brings me to what I want to write about.

What? You think it’s going to be about teamwork in business? In real estate? Not so fast.

What I want to write about is: The Bulls.

If you’re going to be bullish about something, their name is ready-made.

They’re even more inspiring than the Bears were. Boston and Miami are hard to beat. But the Bulls have done it. This team never gives up.

What makes me bullish about the Bulls, other than their ready-made name, is just that: they don’t quit.

At the beginning of the season, these guys faced the unknown. I know what that feels like.

Here’s where the parallel between sports and business comes in.

Many teams in our industry, management groups at other builders, banks, and land companies hung it up. Left the court.

We didn’t do that. Just like the bullish Bulls, we kept our team together and played with tenacity.

We found new ways to stay in the game. When it became impractical to build big communities, we called another play.

We offered our know-how to banks so they could build out failed developments and come out okay.

We helped a land owner create a shopping center. We didn’t just arrange construction; we arranged everything: marketing, finance, interaction with municipal officials.

We put our experience on the line, and today we’re keeping busy by helping banks, downsized builders, land owners, home owners and planners of retirement communities find ways to win.

A team that stays together and plays smart has every reason to be bullish about the future. If its name is The Bulls, so much the better.

You Don't Have to be a Bob Dylan Fan.

By Buz Hoffman, President, Lakewood Real Estate Solutions

March 3, 2011

But you know his famous song.

“The times, they are a-changin’...”

That old title lives in our imagination even if the lyrics are long forgotten.

Times were changing in Dylan’s heyday. But change seems to be even more in the news now...

Countries on the other side of the planet are changing radically. Facebook revolutions?

And the way we get information is changing. I drove past a 2-story bookstore today and it had a sign shouting “store closing.”

Paper is changing to digital. Look where you’re reading this. Not a newsletter, a screen.

And how’s this for change. The name “Daley” is no longer at the top of Chicago politics after changeless decades there.

Best of luck, Rahm.

But more to the point of this blog, everywhere you look, the bedrock of our business world is changing.

Real estate has been particularly affected. Home values have plummeted. Mortgages are a pain for those who made them and those who have them. Building has slowed to a virtual standstill.

Change sweeps things out of the way unless they adapt. I like the word, “adapt.” I think about it when I think about “change.”

The only way Lakewood could stay viable in the changing real estate world was to adapt.

And we did.

We didn’t disband. Didn’t fade away. Our team stayed together and found ways to make a go of it, in a world of change.

We’re not creating a thousand new homes from scratch any more. We’ve adapted. Instead we’re creating other things.

Like a shopping center in Long Grove.

And we’re consulting. We’re making three generations of experience available to a market that needs tangible solutions: banks, landowners, struggling builders.

We’re helping them build themselves out of trouble.

And there are other ways we’ve adapted. We’re buying foreclosed homes at auction, reconditioning them, and offering them at great prices to families who need great value.

Dylan said, “The times, they are a changin’...” But there’s a footnote to that great title: Survivors, they are a-daptin’.

Sunset...Sunrise.

By Buz Hoffman, President, Lakewood Real Estate Solutions

February 7, 2011

Recently, we attended the grand opening of Sunset Foods at our new Sunset Grove Shopping Center in Long Grove.

The celebration reminded me of the old song, “Sunrise...sunset.”

I thought about how far this beautiful parcel of land has come. The property at the corner of Aptakisic and Rt. 83 in Long Grove had always held promise.

But before we were asked by the owner to help develop it, there had been several failed attempts. A classic case of starts and stops.

Then we took over. We did what we like to do: find solutions.

We served as developer, builder, contractor, idea-team. We used our experience and contacts to get things moving.

We arranged for Sunset Foods to be the anchor store. Then we signed up CVS Pharmacy, Chase Bank and other brand-name tenants.

We brought in architects, designers, marketers and leasing specialists to bring the center to life.

We made a website: sunsetgroveshoppingcenter.com.

Today, this real estate opportunity has become a reality. And it’s the source of more than 130 permanent new jobs for Sunset alone, and more than 200 jobs in the whole center.

How do we feel about this?

The way you feel when you see a new beginning. And when you hear the beautiful song: “Sunrise, sunset.”

But this time, I’m reversing the lyrics:

“Sunset...Sunrise!”

It’s a new day for this supermarket super-star.

It’s also a new convenience for residents of Long Grove, and all nearby suburbs, too.

Just ask the people of Riverwoods, Lake Zurich, and Buffalo Grove about their new Sunset Foods.

Plus, it’s a business bonanza for tenants who are leasing space at the Sunset Grove shopping center, present and future.

And I love the fact that it represents those 140 employment opportunities. Job creation is key to increasing our economy’s health.

Finally, there’s the satisfaction felt by the owners of this prime piece of land. They reached out to find a solution…

And they got one.

It's Not About The Money.

By Buz Hoffman, President, Lakewood Real Estate Solutions

January 13, 2011

Strange thing for the president of a company to say. But, today, more than ever, my old philosophy holds true.

I’ve never put making money at the top of my list. My dad didn’t either, and neither did my grandfather. Both of them were legendary home builders.

Sure, they got successful. But it was the result of doing good work every day, not going after a buck.

In today’s challenged real estate world in which banks are reeling, homes are being foreclosed and builders are floundering....it’s just as well that money-making isn’t a priority.

Because it ain’t happening.

But as I said, it never was about that. It’s always been about doing good work and helping people.

Sound idealistic? I can live with that.

In any case, money has a way of showing up down the line if you do things well. But it’s not the goal.

Today at Lakewood we have no illusions about pulling in big bucks. But we’ve got our work.

Some of what we do involves advising, consulting and helping others who need our experience and talent.

There aren’t many organizations around who have the knowledge, ability and inclination to point the way.

That’s why we’re being engaged to build out properties that have hit a wall.

We’re showing banks that it doesn’t pay to sit still. Their at-risk costs have been spent, and are gone. The best course of action is to build out and move on.

Smart banks understand, and it’s a pleasure to work with many of them.

We’re also developing the Sunset Grove Shopping Center, with its Sunset Foods, CVS Pharmacy and other stores.

When I look at this come to life in Long Grove, and hear from residents who are excited about it, I don’t think about money.

I think about the satisfaction of turning land into something useful.

Additionally, we’re helping revitalize failed developments in towns around the north suburbs.

This means building some new homes, fixing up others, and sometimes it means just sitting down with people who have problems, and finding solutions.

None of these activities is resulting in a significant flow of income to Lakewood.

That’s okay. We’re busy, and doing some good. The money will take care of itself. For now, it’s not on the list.

I Wouldn't Say It If I Didn't Mean It.

By Buz Hoffman, President, Lakewood Real Estate Solutions

December 21, 2010

“I wouldn’t say it if I didn’t mean it.”

Sounds trite to say “happy new year.” I know that.

Especially after the bumpy ride our industry continues to take. “Happy new year” comes across as an automatic seasonal requirement with no real meaning.

But, surprise: I actually mean it.

I expect you to have a happy new year. I expect us to have one, too. I’m optimistic. I’m glad 2010 didn’t turn out as disappointing as some thought it would.

I’m glad our office is humming with activity. I’m looking ahead to more of the same. That makes me happy for us at Lakewood. And happy for you.

You’re in a related field: banking, finance, real estate development, sales. Well, happy new year.

Here’s why I mean it...

We’ve seen proof that if you keep your wits about you, get creative, play fair and think positive, you’ll stay busy.

You might not make the kind of bucks that our industry once threw your way, but you’ll survive to make some bucks another day.

When I think about our shopping center project, I get happy.

This started as an idea for a promising parcel in Long Grove, and now is getting a Sunset Foods store, a CVS pharmacy, a bank, cleaners, a whole mall full of businesses.

We developed the site and put the teams together that make it work. Next year, we hope to do more of this kind of thing. It’s something we did well, and that’s reason for optimism.

We also took over a number of developments that were floundering. They needed a steady hand, strong ideas, seasoned talent. They needed us.

And of course, we needed them. So I’m optimistic. We made it this far through 2010, and we’re going to have a lot of work ahead in 2011.

What’s more, I think you will, too.

When I say “happy new year” it’s not just some knee-jerk, platitude. This year it carries a little more weight.

It’s based on the exhilarating feeling you get for having survived a battle, and the nice feeling you get when you look forward to whatever’s next, knowing it’ll be productive.

So here goes: Happy new year. Wouldn’t say it if I didn’t mean it. All my best to you, your families and your colleagues.

Role Model.

By Buz Hoffman, President, Lakewood Real Estate Solutions

December 2, 2010

Why would someone like me, who used to build and sell a thousand homes a year, be impressed by a guy who builds and sells one a year?

Well, this is part of our industry’s future.

(I’ve always loved the future. I’m a science fiction nut. Captain Kirk once came to my birthday party. But that’s a story for another day.)

Back to the future...Back to the guy who builds and sells one house a year. I have to say: he’s an inspiration.

See, in this age of reduced real estate activity, there’s a different set of possibilities. One possibility is that you’re sidelined for the duration. To that we should all say, “bull.” That’s what the guy who’s building and selling one home said.

Here’s his story, real quick:

He buys the house for an extremely low price. It might be a partially built new home that a bank took back. It might be a foreclosed new home that a buyer never occupied.

Like McCartney said, “Take a sad song and make it better.”

The guy patiently fixes up the house. Takes his time. Does things right. And very inexpensively—that’s a key new possibility in today’s world of housing products and services.

He does the job with personal commitment, then sells this one house. Here’s the best part: he sells it for an extremely low price to a start-out family that needs the house...and the low price.

Inspiring. It’s another example of how you can live, work, survive, do good, feel good and stay busy in today’s real estate world.

At Lakewood Real Estate Solutions we identify with this. We’re taking things one step at a time. Working with small as well as big projects. Also working with new kinds of projects, the Sunset Grove shopping center, for example.

Like that guy building and selling one house at a time, we’re not on anybody’s sideline. I don’t think you should be, either.

Who I Voted For On November 2nd.

By Buz Hoffman, President, Lakewood Real Estate Solutions

November 3, 2010

I voted for you. You weren’t running? Oh, yes you were. Running for high ground. You’re in real estate, right? Or banking? Land? Finance? Law?

Your business world has been challenged big-time. So has mine. And we’re all trying to make the best of things. I’m hoping that the people I voted for will help.

I’m not going to discuss the candidates; the important thing is that we voted. We had a voice, and we used it.

Now the winners can stop sniping at each other, and start working on tangible ways to improve our lives and businesses.

Even if the new office holders don’t do much, there’s a beneficial effect to having the election over...

The marketplace can say: “Okay, voting day is behind us. No reason to play wait-and-see any longer. It’s time to get going. Let’s clean up the mess.”

I hate to say that this is “a new beginning.” Sounds like a slogan from one of those god-awful TV commercials that politicians have been subjecting us to.

But the truth is undeniable: After the election, there really is a new beginning. In real estate, that’s good.

The bottom of the market has got to stop being called the “bottom of the market.” From this day forward, let’s just call it “the market.” It is what it is, and it’s what we’re going to work with.

At Lakewood, we’re interested in action. We’ve got irons in the fire. One quick example: our newest venture, “Right Residential LLC” has just been formed, and it will make low-priced homes available to people who need them.

We’re also building the Sunset Grove Shopping Center in Long Grove, with its anchor being a much-anticipated Sunset Foods store. And we’re helping banks, land-owners and development groups build out targeted developments. We’re busy every day, designing plans, making deals, doing what we do.

The election’s behind us. It’s time to get some of our problems behind us, too.

My First Love.

By Buz Hoffman, President, Lakewood Real Estate Solutions

October 14, 2010

Don’t worry. Nothing sappy is about to be revealed. This is pure business talk. Well, almost. There is a love story. Can’t deny it.

My first love as a builder has always been to create well-built, start-out homes for people who work hard to get the American Dream, but don’t have big bucks.

“Entry level housing.”

That product niche has always been a favorite for me. My dad felt the same way, and so did my grandfather, back in their Hoffman Homes years. Even though today’s housing situation has created enormous challenges for us all, there’s one bright spot if you know how to find it.

And here it is: The fact that housing prices have dropped like a rock can be a pretty great thing...if you’re a start-out home buyer.

There are now unprecedented opportunities at the affordable end of the marketplace. At Lakewood, we’re participating in those opportunities. We’re providing entry level housing. And loving it.

This is a whole new ball game for the industry, of course.

We’re not buying big tracts of land to create neighborhoods from scratch like we used to do. (Some day, maybe we’ll get back to that, but not just yet).

Instead, we’ll take the reins of a project that another company started and lost. We’ll get it into shape, build it out, and present it to the marketplace.

We’ll find financing partners, arrange all construction and marketing, and before you know it, there will be an affordable new residential option out there for people who need a great bargain in order to have a great home.

Even when times are tough, somebody wins. Today, it’s the buyers who are finding the lowest prices and financing rates in recent history.

And resourceful bankers, land owners and builders who understand this market, are going to be just fine.

The Bears Are Making Me Bullish.

By Buz Hoffman, President, Lakewood Real Estate Solutions

September 30, 2010

I don’t mean bears in the financial sense. Forget financial bears, for once. I mean The Bears. Or as they’re sometimes known around Chicago, Da Bears.

A few days ago our Bears got off to a 3 and 0 start for the season. I always hope the team’s going to do well. But I admit it: I worried we were going to get off to a tough start. Maybe we were looking at a 1 and 15 season. Something like that.

Hey, it’s a pessimistic age. Especially after the last few years in our business.

Sure, I know the Bears could wind up 3 and 13, but I’m not counting on anything pessimistic like that. Not now. What they showed me in just those first three games made me optimistic. Made me bullish.

And I carried that feeling over to the way I feel about our industry, our region, our business. It’s a lot like football. All the old corny things apply and they’re true: You don’t give up. You hang in there. You play hard. You take advantage of lucky breaks. You believe in yourself. And you go for the yardage.

Yardage. That’s something close to home, close to our hearts around here. Yardage means land. Land means development. And even in times like these, development can work out and make you a winner.

Look what’s happening at our project in Long Grove. Bulldozers are bullish there, building an impressive new shopping center that’s got a Sunset Foods store, CVS Pharmacy, and a lot of other bullish tenants.

We had the right attitude. We got the financing, we put a game plan together, we kicked it off and it’s a winner. Okay, sorry for all the football terms. Didn’t mean to get carried away....

But watching our Bears get off to a great start, even though people might’ve had doubts about them, made me feel good.

Maybe it’ll make you feel good about your business, too.

Just work on the fundamentals, play hard, be positive, put a good team together and hit the ground running. It might work for the Bears. We’ll have to see what happens next week and the weeks after.

But I know it works for us, and for the companies that team up with us. Go Bears!

What I Didn't Tell Chicago Agent Magazine.

By Buz Hoffman, President, Lakewood Real Estate Solutions

September 16, 2010

I recently wrote an article for their “Recovery” issue. Did you catch it? Here’s a quick recap of what I said.

And what I didn’t say.

The Lakewood team is around today because we stopped purchasing land prior to the collapse in 2005. Prices were getting high, and wouldn’t have allowed entry-level product.

We stayed together and started Lakewood Real Estate Solutions. A consulting and construction resource. (For more details, just mouse back through the pages).

In the article I was modest about our initial success. But let me tell you: we’re working. Our “Solutions” business has become a timely solution for many bankers, builders, landowners, municipalities, homeowners....and for us.

There are two meanings to: “We’re working.”

Here’s something I didn’t say in the magazine, but I’m happy to share with you: There’s a double meaning behind the phrase “we’re working.” It means that we, ourselves, are working. We’re at our desks and in conference rooms, taking phone calls, wearing suits and ties, running to meetings, doing business.

In an industry decimated by collapse, not every one of our contemporaries can say as much. We know all too many good people who have been sidelined. But we’re busy.

This is because the other meaning behind “we’re working” is that what we’re doing is working.

We’re guiding clients out of jams. We’re showing owners of distressed properties how to turn holdings into something other than a burden on the books. What we offer works...so we work.

We’re helping a land owner by building a shopping center. (See “Lakewood in the news” for details). We’re also building out residential developments in partnership with banks, and other builders.

The way to make it in this marketplace of foreclosure and failure is to build your way out. Counter-intuitive? Could be, but it works. We demonstrate it, first with case histories...then by making it happen.

In the magazine, I said that the industry is hovering near the bottom and the only way to go is up.

Today, a colleague said to me: what if the only way to go is sideways. A moody thought. Well, it’s a moody business. But even if the guy’s right, nothing goes sideways forever.

And even when the industry is going sideways, building your way out still works. That’s why we’re still working.

The last thing you’d expect a home builder to say.

By Buz Hoffman, President, Lakewood Real Estate Solutions

September 1, 2010

Home ownership is the American Dream. I’ve built my business around that idea. And I mean BUILT. I’m a home builder, like my father and grandfather. I’m going to be building when times are rotten, and when they’re fine.

But today, I’m going to say something surprising. It’s the last thing you might expect from a builder...Owning a home isn’t for everyone.

The world got knocked off track because everybody in construction, financing and government believed there were three words more important than location location location: These were own own own.

Today, I’m hitting a different note. (Something I like to do. I’ll break out my electric guitar sometime, and show you...). I’m saying: no no no. Some people shouldn’t buy; they should RENT.

The government pushed “own, own, own” in the belief that owners with a stake in the community would keep it in good shape.

But today, there’s a new renter, with the same mindset that owners have. These renters are committed to a quality environment without being tied by the neck to a mortgage.

“Own own own” has been re-thought. I’m re-thinking it. How about you?

And there are other reasons why renting is right for some folks...No mortgage. No down payment. A renter’s money is free to invest. A renter has a sense of freedom. When a lease is up, the renter has options.

Plus--no real estate taxes. Renting is quick; sign and move. No waiting for construction or closings. If something breaks, let the landlord fix it. The list goes on.

You know this list as well as I do. You could probably add to it. What you might not have known is that I agree with you.

At Lakewood Real Estate Solutions we think about what’s best for our economy, community, customers and friends. There’s a swing toward renting, and we believe it makes sense.

Our company is about “solutions,” right? Renting is one solution, even if it’s the last thing you’d expect a home builder to say.

Does this mean that builders like us should adapt to a rent-savvy world? Just watch this space.

“Let me tell you why you’re right.”

By Buz Hoffman, President, Lakewood Real Estate Solutions

July 20, 2010

I know a smart businessman who bluntly says to people in meetings: “...Let me tell you why you’re wrong.”

Sometimes you feel like braining this guy. So I understand how you might feel if I said that to you. But I’m going to say it.

(Bear with me...)

Your bank has taken over partly built homes that aren’t selling. They’re not being marketed. They’ve become a ghost town out in the weeds somewhere, getting weedier. Losing value.

You say: “I’m not putting another dime into that place!”

Seems logical. But, I’ve got to say.... “Let me tell you why you’re wrong!”

Look: Your risk money has already been spent. It’s gone. Certain well-considered new costs, like the cost of “sticks and bricks” can actually turn things around for you.

They’ll add value to your property. And this will allow you to see a tangible, maximized return that you thought was impossible.

What about your gut reaction? The impulse to say, again, “not another dime...” Here’s the answer. And it’s the best part: You only spend these new costs when you have a buyer approved, ready, and willing to close.

That’s where I can help you.

I and my colleagues fix failed developments for banks. We’re all battle-hardened industry experts with long lists of success stories under our belts. We’re Lakewood Real Estate Solutions. The emphasis is on “solutions.” No bankers, smart as they are, can do exactly what we do.

We make your property attractive to that much-needed buyer. We get your bond lowered. Fees get improved. Zoning requirements get adjusted. We supply plat and developer agreements. Soil tests, all the details.

But, what really makes this work for you is that we do the actual build-out! (Building is our background. Does the name Hoffman Estates ring a bell?). Plus, during and after construction, we handle sales and marketing.

The property that you’re sitting on is not like wine. It won’t improve with age. It’ll just keep costing money. More than dimes. It’ll cost big bucks, sitting on your books as a fat liability, eating up maintenance and insurance costs.

This has got to stop. If you call me and say, “I think we need to talk,” guess what I’ll say?

“Let me tell you why you’re right.”