BILL CHERRY'S GREATEST DALLAS PARK CITIES REAL ESTATE BLOG: February 2012

There is one statement about investments that is indisputable.  If an asset does not earn a sufficient, regular cash return to its owner, it’s a speculation. 

By definition it's not a true investment.

Investments are vehicles that earn their keep.  The hope of capital gain, without sufficient regular cash return, is speculation.

Gold and other precious metals are 100% speculations.  They don’t work for the investor.  They generate no income.

They are market driven, and profit and loss are determined by what people are willing to pay for them.

Currently, properly investing in for-lease residential real estate is an excellent investment vehicle.  It fits the definition of an investment.

And since successfully picking and managing residential real estate is formula driven, a hand calculator, a legal pad and pencil, and a mind that doesn’t let "cute" overcome good business reasoning, can easily drive your success.

One interesting and clever investment avenue is buying large, older and historic homes and converting them into duplexes, tri-plexes, sometimes even four-plexes. 

And often an additional unit can be added above the garage.

In years past, I converted a number of homes in Galveston’s East End Historic District into apartments.  Since the area is adjacent to the University of Texas Medical School, they were in the perfect market.

These clever units commanded higher rents than those in conventional garden apartments, had very low vacancies, and always led the market in appreciation.

The net rents brought a fine and consistent rate of return.

If you are interested in this investment avenue, perhaps I can help you find and select the perfect Dallas properties.  Call me.

BILL CHERRY, REAL ESTATE BROKER

Since 1964

Dallas – Park Cities

214 503-8563

There are those of us who market ourselves by constantly tooting our own horns.  With my tail between my legs, I have to admit that I’m inclined to use that method.

Those who do and do it well seem to make great headway.  While those who personally don’t have that innate talent often fail.

I don’t know where I fit in that equation, but I expect not very close to the top.

The other marketing strategy is methodically compiling and maintaining a list of those you know and meet, and then keeping in touch with them…letting them be the ones who toot your horn, one person at a time.

Our neighbor and friend, Lou Johnston, has known Carriejean “C.J.” Prince for a long time.  C.J. is one of those whose ad and picture you won’t see in D Magazine.  You won’t get a postcard from her telling you she’s the Number 1 Agent.

Good thing, too, because that foolishness is tired, worn out and wreaks of untrue hype.

C.J. is one who has found that methodically marketing herself through her list of friends and contacts earns her a fine and dependable living as a real estate salesperson.

One of her marketing pieces is a professionally written and printed magazine called American Lifestyle.  Her photo and message are printed on the inside of the front and back covers. 

But from that point forward, the reader finds great stories, recipes and home decorating features.

It even shows a barcode on the front cover and a newsstand price of $5.95.

American Lifestyle comes out six times a year, and is mailed by its circulation department to C.J.’s list of “special friends” and contacts.

Lou Johnston is one of C.J.’s special friends, so she’s one who gets the complimentary subscription.  When Lou finishes with the magazine, she passes it on to Patty and me.

My guess is that if there were a way to know for sure, C.J. would find that a high percentage of those magazines that she sends out are read, then passed on to others.  The result for C.J. is the Double Whammy.

That’s just plain good marketing.  You may want to try an idea like this yourself.

        BILL CHERRY, REAL ESTATE BROKER

Dallas-Park Cities
Since 1964
214 503-8563

BOB HOPE
May 29, 1903 - July 27, 2003

Yesterday was Presidents’ Day.

I wish there were a way to include Bob Hope in that annual celebration.

BILL CHERRY, REAL ESTATE BROKER

Dallas-Park Cities
Since 1964
214 503-8563

Real estate brokerage wasn’t an overwhelming, competitive dog-eat-dog profession when I first permanently went full-time in the business in Galveston in the late ‘60s.

Real estate brokers ran small ads, stuck signs in their agents' listings’ yards, and waited for the phone to ring. 

MLS wasn’t big with home buyers. 

They looked through the newspaper classified ads, drove neighborhoods looking for For Sale signs, and called each agency that had a listing they thought they would like to see.

There were no For Sale sign riders, so the listing agent’s name and separate phone number weren’t there to see.  Prospects called the listing office, not the listing agent. 

There was nothing unusual for a listing agent to also be the agent who made the sale.

In fact, many real estate brokers were not members of MLS, even though most of them were Realtors.  Those who weren't members saw no reason to join. 

Prospects called the agency’s main number, and the agent who was working floor time when the call came in would set up an appointment to show the home.

That was how new agents integrated into their new profession.  It was how they were able to build their practice.

There was very little agent loyalty.  Buyers bought from the agent with the company that had their listing of choice.

In that scenario, if a house didn’t sell or if it didn’t sell without a deep discount, all fingers pointed to it being the fault of the listing agent.

So often times when an agent had procured a promising potential listing, most of the agents in the office and the broker would tour the home and give their opinions and suggestions to the listing agent. 

The listing agent would then pass the comments on to his client to support how the property should be put on the market.

That procedure did a fairly good job of causing reality to be in command.

By contrast, today – for an example in the Dallas-Ft. Worth area – there are many brokerage offices and they are filled to the brim by nearly 15,000 agents. 

Their company signs have riders that direct prospects to call the listing agent directly, trumping those doing floor time waiting for calls.

And agents get prospective buyers to agree by contract that they will use no other agent but them.  From that point forward the buyer's agent and the MLS rule.

In today’s real estate environment, if a home doesn’t sell during the listing period, or if it only sells as the result of a deep discount, in general the blame lies solely on how the home was prepared to be marketed, including the choice of the listing price.

Concluding that the listing agent’s sales ability is at fault is incorrect logic. 

He or she may not be a talented salesperson, but with the number of agents working the community, all using MLS as a primary tool, it would be difficult to conclude that the home didn’t sell because all agents in the real estate community were also untalented salespersons.

Changing real estate agents in 2012 because a home didn't sell may not be a curative strategy after all.  It was in the 1960s.

BILL CHERRY, REAL ESTATE BROKER

Dallas – Park Cities
Since 1964

214 503-8563

TRINITY EPISCOPAL CHURCH
Galveston, Texas 
Founded 1841
The Gothic Church Building Completed in 1857

Recently the enormously wealthy Moody Foundation of Galveston, Texas chose to award a grant of $2.7 million to Trinity Episcopal Church’s parochial school rather than to the church itself. 

It came with great thought as to how the church and the school could best be helped to grow.  I wrote this piece for the Galveston paper.

******************

What Moody Foundations Grant to Trinity Really Means 

A number of years ago, Houston’s St. Thomas Episcopal Church’s membership was diminishing.  Many worried that at that rate, the parish could soon cease to exist.

My longtime friend, Robert Bennett, CPA and CLU, was a vestryman at the church. He was asked to come up with a plan that would likely save it from possible extinction, but would also significantly rebuild the membership.

Bennett’s advice?  Funnel most of the parish’s resources – financial and mental – toward building the church’s parochial school.  His corollary?  Churches without schools are difficult to sustain, much less to grow.

Today, St. Thomas’ Episcopal School has all 12 grades.  And its huge boys’ drum and bagpipe band, kilts and all, have brought it national acclaim.

Many have applied for enrollment in the school with the hopes they could try out for membership in the drum and bagpipe band.

With the growth of the school has come the growth of the church’s membership.  Today, St. Thomas is a true feather in the miter of the bishop of the Episcopal Diocese of Houston.

Galveston’s Trinity Episcopal Church, for various reasons, has been limping along with declining membership for a number of years, even though since 1952 it has had under its wings founder Fr. John Caskey’s academically acclaimed Trinity Episcopal School.

The Rev. John F. Caskey ===>>

Like many of the old downtown Galveston churches experienced, Hurricane Ike did its best to sound Trinity’s death knoll. 

All of the churches were left gasping for air, trying to figure out how to rebuild their buildings and save their memberships.

The Moody Foundation trustees’ extraordinary business judgment concluded the same solution for Trinity as Robert Bennett had advised for St. Thomas almost 30 years before. 

Rather than devote a grant to Trinity Church, instead the foundation gave $2.7 million to Trinity School to build an activities center and gymnasium.

This huge injection of parochial oxygen guarantees the growth and validation of Trinity School, and that will give reason for the church to be able to rebuild its membership and continue ministering in Galveston to the glory of God.

Blessings to Robert and Ann Moody for whom the facility will be named.  And blessings to the trustees of the Moody Foundation for exercising their wisdom.  All of Galveston should be thankful.

BILL CHERRY, REAL ESTATE BROKER

Dallas – Park Cities
Since 1964
214 503-8563

 The Story of Franny Kay’s Bout with Lew’s Piano

By Bill Cherry

The glow of sunset in the summer skies,
The golden flicker of the fire flies,
The gleam of love light in your loving eyes,
These are the things I love
--Words by Harold Barlow, Music by Lewis Harris

Galveston implant, Lew Harris, wrote the music to this song when, just out of Boston College, he was the pianist with the house orchestra at Manhattan’s famous Rainbow Room. 

Over the years, Lew Harris’ song, “These Are the Things I Love,” has been recorded by Judy Garland, Frank Sinatra, Caterina Valente, Della Reese, even jazz trumpet player, Dizzy Gillespie.

But to Galvestonians, the most memorable version was sung by Robert Goulet, because it was the theme song for Lew Harris’ wife, Frances’ 54-consecutive year radio program for the Island’s KGBC-AM.

After University of Texas, Frances Kay Harris (the Kay was her maiden name) was trying her hand as a Broadway theater actress when she met Lew, who was in New York making his way as a composer of musical comedy.

Within what seemed to both of them like moments, they married.

It was the war years, and things were tight, especially for a couple who had two children, aspiring to make their way in the entertainment business

In 1947, with the almost constant encouragement from Frances’ dad, they gave up Broadway and moved to Galveston.  Lew joined his father-in-law in the general insurance business; Frances took up daily broadcasting the women’s news.  Tracy and Johnny enrolled in public schools.

Lew’s dream was to own a Baldwin grand piano.  He had no trouble picturing it in their Harve Lafitte home’s living room.  But, after all, he once confided in me, a grand piano is a rather selfish thing to buy when you’re the only one in the family who is serious about his music.

Nevertheless, for a number of years he saved a few bucks at a time until he had $10,000 in his “piano fund.”  He called Joe Ginsberg at Ginsberg’s Music Center, and had him order the exact Baldwin model grand he had always wanted.

When Joe called him to let him know the instrument was in and ready to be delivered, Lew withdrew from his Moody National Bank special account, $10,000 in one hundred dollar bills.  And he took them to Joe as a way of adding an emphasis to the accomplishment.

When it was delivered, Lew’s decorating eye was confirmed.  It did look great in the living room, and the sound and tone displayed themselves magnificently as they bounced against the big floor to ceiling windows that overlooked their backyard pool.

Some years after Lew had died, Frances called me.  “Bill, it’s Franny Kay.”  I had always jokingly called her Franny Kay, and she had always made out like what she had heard me say was “Frances Kay.”

This was the first time she had ever referred to herself to me as Franny Kay; a milestone since at least 35 years had passed since I had first decided I’d call her that.  It had always been our subtle joke.

“Tracy is coming home for the holidays, and she may want to play Lew’s piano.  When can you come tune it?”

The day I arrived for the appointment, Franny Kay had her little manicure table-for-two set up next to the big windows that overlooked the pool.  Her manicurist was on the way to attend to her nails and to gossip. 

That afternoon, Franny Kay’s lifelong friend, Ruth Kempner, would stop by for their almost daily game of for-blood Scrabble.

Her maid, who had been with her for decades, had a small TV set sitting in front of herself at the breakfast table.  The maid’s head was on the table in her arms; she was asleep.  The TV chattered on and on as if she weren’t.

I sat down at Lew’s piano to begin to play.  Nothing came out.  The keys couldn’t be depressed.  What in the world is wrong, I thought.

When I opened the lid of Lew’s $10,000 magnificent Baldwin grand piano, the strings were fully covered by at least an inch of cat hair!

“Franny Kay, what in the world?  How do I tune a piano that doesn’t play?  Why has the cat been sleeping inside of Lew’s piano?”

“Bill, you’ve got to learn to love animals more.  Since Lew died, no one has been here to play or enjoy his piano but my cat.  It brings her great pleasure.  But I guess she’ll have to find another place to sleep.   Can you fix it?”

“I can’t, but I use a piano restoration company that will be able to.  I’ll pull out the action and take it there and get an estimate for you,” I promised.  “But there’s no way Tracy will be able to play Lew’s piano this holiday season.”

“Franny Kay?  It’s Bill Cherry.  The restoration company said it will cost just shy of $5,000 to bring Lew’s piano back up to snuff.”

When I brought the action back, put it in place, then tuned Lew’s Baldwin grand, the first tune I played for Franny Kay was Lew’s song, “These Are the Things I Love.”  She smiled throughout it all.

I thought of the friendship I had enjoyed with the remarkable Franny Kay and Lew Harris since I had been a child.

Then be darned if the manicurist didn’t ring the doorbell and break my spell.  Franny Kay went to greet her, and I packed my tools and left.

About two years later, the phone rang.  “Bill, it’s Frances.  My computer is upstairs, and I think it’s time to move it downstairs.  The only place I can think of where it will fit is where Lew’s piano is.  What should we do with Lew’s piano?’

“That’s easy.  Lew was rabid about raising money for the Moody House Retirement Home.  What about putting it on permanent loan there?”

And that’s what she did.

Frances Kay Harris left us on January 22, 2012.  She was 94.

Copyright 2012 – William S. Cherry

BILL CHERRY, REAL ESTATE BROKER

Dallas - Park Cities
Since 1964
214 503-8563

Caller-ID is a great invention, especially for those of us who deal with the public. 

If the caller doesn’t choose to block information from the recipient, it lets us know their name, the correct spelling, and the phone number from where they are calling us.

<<==Maxwell Smart speaking to Agent 99

In the main, it’s been pretty reliable. 

That is, until now.

Enter the latest scam.

There are sources available on the Internet – whether they are domestic or foreign in location – that, for a fee, can change the information your phone call posts on recipients' Caller-IDs.

That’s right.  I suppose I could have my telephone Caller-ID programmed to announce that you’re not getting a phone call from me, but from the Federal Bureau of Investigation. 

And I could either have my correct home phone number shown, or I could actually have the FBI’s number shown.

So what do you do when you are suspicious or it’s important to you that the person calling is who he says he is?

Tell the caller you’ll call him back.  Get his full name, then look-up the company’s main phone number on the Internet, then call and ask for him. 

BILL CHERRY, REAL ESTATE BROKER

Dallas – Park Cities
Since 1964
214 503-8563

I’ll admit that I’ve been on a rampage writing blogs about the secrets of some prominent Dallas investment advisers, financial planners, and the like.

It all started when I did some checking, and what I found out I didn't like!

Well-known celebrities and business people offer their personal endorsements before, during and after some of the investment advisers' radio infomercials.

And just like those who are listening to their endorsement, you have to believe that they are willy-nilly endorsing someone whose ineptitudes and legal violations they know nothing about.  If they did, they would probably distance themselves all together.

Prominent TV ministers, a well-known owner of a real estate company, baseball and football players, doctors, New York Times Best Seller authors, political figures – even state governors.  The list of endorsers goes on and on.

And it's outrageous!

If you plan to use a financial adviser, or if you use one now, you should do your due diligence, and do it frequently.  Here are some good places to begin a search to find out the truth:

Federal Criminal and Civil Suits. www.pacer.gov.  Register for a free account.  You can then access all of the U.S. court records.  The cost is 8 cents per page.

State Criminal and Civil Suits. Google your state’s name plus judicial branch.  You’ll find how to see all public and legal documents. 

Broker and Securities Misconduct.  To check to see whether or not your broker is actually registered to trade securities – and at least one Dallas radio hotshot isn’t -- his license was revoked and he paid a big fine for misconduct.  (Nevertheless, he continues on)  www.finra.org/investors/toolscalculators/brokercheck/index.htm. 

Judgments and Liens.  Here’s an interesting source.  www.publicrecordcenter.com.  In addition, for a nominal fee, the service will do a specific background check to see if there are bankruptcies, criminal convictions, pending lawsuits in your adviser’s past or present.

Forget the free seminar that comes with the free hors doeuvre, dinner, cocktails, chance to win a free trip to Mexico, the book with all of the answers, and the free one-on-one later visit at the adviser's office.

Do your homework. And if all seems on the up and up, ask the guy what his personal net worth is.  That, after all, is a fair question.  If he is barely hanging on, why would you want to buy his advice?

BILL CHERRY, REAL ESTATE BROKER

Dallas-Park Cities
Since 1964
214 503-8563

Former Home of Jack's of Dallas
8307 Preston Road near Northwest Highway

There is a historic site in Dallas that isn’t noted on Google, and I couldn’t find any mention of the man who built from scratch what became an iconic and copied men’s barber shop.

Before you pass judgment, please hear me out.

He was Jack Pitts and his fancy men’s hair salon was named Jack’s of Dallas.

Prior to Jack's of Dallas, for years and years, white men’s hairdos were reduced to about five styles:  white walls, tapered, DAs, crew, and butch cuts. 

Men like Bill Haley of Bill Haley and the Comets had slight adaptations – Haley had a hair squiggle that hung down on his forehead – but in the main, you went into the barber shop and picked white wall, tapered, DA, crew or butch. 

And you hoped the barber hadn't made too big of a mess before he massaged Wild Root Cream Oil (Charlie) on the top to plaster it down with the hopes of hiding his mistakes from you.

As far as parts go, the barber never remembered were it was.  He picked a place he liked best.

Of course every haircut was finished with brushing your neck with Jeris talc so that small pieces of the cut hair would go down the backside of your shirt collar and cause you to itch for the remainder of the day.

My hair was both course and thick – I had lots of it. 

And nothing much made the top ever look orderly. 

When I was in the 7^th grade, I became sure it wasn’t because I was 5’5” and weighed 120 lbs. that kept me from being a strong competitor against the football players for the pretty girls’ attention.

Bill with Crew Cut in 1954 ===>>

It was definitely the unruly hair.

So I went to a crew cut, held standing straight up and level across the top with a product heretofore used by black men called Royal Crown Hair Dressing.  There were two more"  Murray's Pomade and Peach Hair Dressing.

All of the stuff smelled, so I tried covering it up with extra blasts of Old Spice cologne.

I noticed no one got too close to me.  But what was I to do?

Then a hair miracle happened in 1964! 

Jack’s of Dallas appeared on the scene, and with it came the razor cut and the finished product styled and held in place with a new product called Dep.

No one’s hair would dare move after a dose of Dep jell, cooked in place with a hot bonnet hair dryer, and then that hold further guaranteed afterwards by five long spray can spritzes of lacquer.

Jack Pitts became my hero.  I was able to have a regular haircut, and it would stay in place, and I could look like a grown man.

Never mind it cost $7 plus tip a week when regular barbers were will getting $1.50.  He transformed me into the man I had dreamed I could be --- if only I could wear a regular hair style.

<<== Bill 1965, Jacks' of Dallas Hairstyle

Boys and men by the droves fought for appointments with Jack.  Norris of Houston brought the same concept there.

While better hair products have come, and my hair has gotten less course and thinner, nevertheless, without Jack Pitts and his Jack’s of Dallas, I would have been a hairstyle outcast for at least the first forty years of my life.

So I am lobbying the City of Dallas to install a historical marker on the site of Jack’s of Dallas, 8307 Preston Road.

It’s the right thing to do.

BILL CHERRY, REAL ESTATE BROKER

Dallas = Park Cities
Since 1964
214 503-8563

An electric service company, Milestone Electric, has popped up in the Dallas-Fort Worth Metroplex within the past few years.

It has grown into a large company.  And it must have an enormous marketing budget because of its many TV and radio ads.

Yesterday afternoon, I was driving east on Northwest Highway near the Buckner exit.  Two ladies in a small car had a flat tire and had pulled off of the road.

The big Milestone Electric truck was parked in front of them, and the uniformed electrician was changing their tire.

My guess is that a lot of those of us drove by and saw that act of good citizenship will use Milestone in the future, who might not have as a result of having seen and heard their TV and radio ads.  I'm one of them.

BILL CHERRY, REAL ESTATE BROKER

Since 1964
Dallas – Park Cities
214 503-8563