Leo Nordine's advice: Rent now, buy in 2010
Advice from L.A.'s "king of foreclosures," Hermosa Beach real estate agent Leo Nordine: Now is the time to rent and save your money. The time to buy is 2010.
Check out this excellent profile of Nordine by Ann Brenoff on latimes.com. Nordine, a favorite of this blog for some time, is an unusual figure in L.A.'s real estate world: a soft-spoken, low-key contrarian -- and big wave surfer -- who works in his bare feet, prefers to sell mainly foreclosed houses, and is wildly successful. Don't let the Zen/surfing vibe fool you; his secret is his work ethic. He has sold 3,500 bank-owned houses over the last two decades. In the attached video, Nordine describes himself as an "atypical" agent:
"Try to find another Realtor who has been telling everybody not to buy. ... For someone out there who's renting, I'd recommend saving as much money as possible. Pay down all your debts as much as possible. And seriously look at buying around 2010."
--Peter Viles
Your thoughts? Comments? E-mail story tips to Peter Viles
Photo Credit: L.A. Times
Hat tip: When I began writing this blog 19 months ago, a number of readers -- including Sunsetbeachbuy and, he thinks, Mr. incomestream -- first suggested I talk to Leo and include his thoughts on the blog. Great tip.
Is it wrong to have a Hetero man crush on Leo Nordine? Cuz I gots one.
Posted by: Cal | October 24, 2008 at 04:57 PM
Cal writes, "Is it wrong to have a Hetero man crush on Leo Nordine? Cuz I gots one."
Thanks Cal. No, nothing wrong with that. My wife and I ran into Leo the other day in Hermosa and I'm afraid she too has a crush.
Posted by: peteviles | October 24, 2008 at 05:00 PM
Hey Pete:
How about a hat tip for point you to Leo Nordine?
I believe it was me with Mr. Incomestream seconding.
Posted by: sunsetbeachguy | October 24, 2008 at 05:18 PM
He is smart enough to make money in any market. Since he knows the market so well he doesn't have to get his clients in trouble by giving bad advice (i.e. Buy now as a normal realtor would say in any market, ignorance) or lie (like realtors who know the market is bad but need the paycheck).
Nothing but respect for him. There aren't a lot of people (especially in that industry) who I can say that about. Straight shooters are hard to find.
Posted by: Cal | October 24, 2008 at 05:28 PM
Oops, forgot the hat tip and just added it. Thanks Sunset, and Mr. Income.
Posted by: peteviles | October 24, 2008 at 05:28 PM
Isn't he a little contradictory though. If we should all wait till 2010, then why are his clients buying foreclosed homes in 2008?
By his own admission then he should tell all of his clients not to buy any type of real estate until 2010...he has sold 3500 foreclosued homes so at some point this year and last, he has helped clients buy real estate in 2007 and 2008 and I'm sure in 2006 etc...sounds like this guy is just using this statement to get some PR.
Frankly I don't know what to think anymore...it's hard to determine at this volatile time when will be a good time to buy.
I know it makes everyone feel better when someone says wait buy in 2010, it makes me feel better. But the reality is that good locations and good homes will still be expensive...yes prices will come down somewhat, but again it will still be expensive.
Posted by: moppy | October 24, 2008 at 05:46 PM
'Buy in 2010? Hmmmm, we'll see,' says the Zen master.
Posted by: MyLessThanPrimeBeef | October 24, 2008 at 05:46 PM
Moppy -- Leo is an agent for the banks -- he represents mainly sellers, not buyers, in this market.
Posted by: peteviles | October 24, 2008 at 06:07 PM
On Leo's site Leo says he only represents sellers.
He has a fiduciary duty to the seller and an obligation for "Fair and honest dealing" to everyone else he deals with in regards to property under California law.
Leo does have a buyers agent in his brokerage, dual agency can get dicey but with as much professionalism as I think Leo has shown I bet he is one of the few brokerages that can do it ethically.
Posted by: Cal | October 24, 2008 at 06:28 PM
Won't his sellers be upset with him for driving away buyers for the next year and a quarter then?
Posted by: Mucker | October 24, 2008 at 07:08 PM
I'd like to see the percentages of people that Leo Nordine sold homes to in 2004-2007 that have been foreclosed on or are in need of modifications. How many of his past customers have toxic loans?
Don't sing praise for a Realtor unless you know their history. Recent bearish quotes (from ANYONE with the REIC) don't mean a thing to the people that already may be in trouble.
Posted by: E | October 24, 2008 at 07:14 PM
If there are no buyers, there are no sellers. You can't have one without the other.
So obviously Mr. Leo needs someone to pull the trigger on these purchases that he's representing.
Posted by: Drew | October 24, 2008 at 07:15 PM
Man this is an angry, tough and uneducated crowd.
Leo Nordine is the real deal for housing bears. During 2004-2007 his website called out a greater depression as a result of the housing bubble.
Posted by: sunsetbeachguy | October 24, 2008 at 08:59 PM
E,
If anyone selling 3500 homes had a pattern of abusing or taking advantage of buyers, it would shine like a beacon to anyone who happened to look. That type of person has a short shelf life and Leo is clearly in it for the long haul. You are hatin' on him because he is in RE (normally a very safe move) but I think you are way off on this one.
Tell you, I have pretty good info handy, show me one questionable deal out of the 3500 and I'll research it.
Posted by: Cal | October 24, 2008 at 09:34 PM
Ask Leo about chinese-manufactured surfboards being represented and sold as boutique, locally manufactured surfboards.
Either you guys got sucked into the soft sell or this was a pure promotional/vanity piece.
Why is there no exploration of the process? A description of how it is to work with banks? Whether they're playing ball or not? How much business they've been doing and with whom? Nothing. Fluff. I've called these people 3 times after seeing a sign on a house. Twice they didn't bother to return the call and once they answered but referred me to someone else. There's something very wrong with the whole picture.
Won't be able to stomach the blog for a few weeks, at least.
Posted by: Uncle Billy, Disappointed | October 25, 2008 at 03:12 AM
I disagree with Nordine. it is this simple owners always win and renters always get screwed. Look at what is happpening now, anyone who bought, even at the top and now near forclosure is now getting subsidized by the tax payers and low interest loans, while the renter is getting nothing besides paying rent. When does it soak in that this country subsidzes the homeowner only and the renter gets nothing. If you cna't afford to buy in LA then move to where you can buy and get in debt. The reality is you go no where financailly when you rent, especially when the dollar will soon be worthless.
Posted by: Steve | October 25, 2008 at 06:19 AM
Steve, our rent is $2k a month. We have $80k in various financial assets (yes, some of which are indexed funds). if we had bought in 2003-2006, we'd be paying around $4500 a month on a mortgage for a comparable house, and now those houses are worth 35-40% less in our area. They are still falling in value. We are socking away $1000+ in savings every month. We won't buy until we can get a payment of $2k-2.4k per month for a 4-bedroom house, without completely emptying our savings. In a declining market it makes NO SENSE to buy. We're still fattening our accounts and waiting for the sellers down the street to realize that their 1700sf 35-year-old house that backs to a major street is really only worth about $325k. Time is on our side and we're getting richer every day.
Those "homeowners" getting loan mods are still going to be underwater on their homes for a long time and will still be paying more than rent. I'll take money in the bank over a house that *might* be worth the loan balance in 10+ years.
Posted by: anonymousgal | October 25, 2008 at 08:29 AM
If more people rent, less people buy, more sellers HAVE to sell, more foreclosures for banks, more clients for Leo!
Prices are rediculous anyway in affluent areas, so he is helping with the correction, the way I see it.
Renting is much cheaper than buying now, with less risk. It is an easy decision.
http://www.westsideremeltdown.blogspot.com
Posted by: latesummer209 | October 25, 2008 at 11:49 AM
Uncle Billy, the bigger REO agents (the ones with more than just a couple listings) are swamped, after all they have the inventory that is selling like hotcakes. If you are interested in a property get a buyers agents instead of going through the listing side and they can get you in to look around or update you on status.
Posted by: Cal | October 25, 2008 at 11:54 AM
Steve right on...
If you bought in a good location a year or two back and even if the price today for that property has dropped 10% or maybe even 20%, who cares do a modification, or a "special short sale" and you're set. If you are renting you are screwed either way. Plus your money(dollars) is sitting in the bank, that's a safe place for it to be(sarcastic). Had the gov. not done the bailout, not interfered in housing and simply allowed banks and everyone else that was going to fail, fail and local gov. not gotten involved, then I would feel less like a sucker, but as it stands today and tomorrow, major sucker!
anonymousgal: maybe you can find a magic wand in a few yrs. because that's what you will need if you think that you will suddenly get this great deal on a house. You will most likely be taxed more in the coming yrs and your savings aren't going to change much of your equation for buying a house.
I'm not advocating buying now or buying later.. I do know that the locations and homes I'm interested in still require a lot of money and I don't anticipate that changing.
Posted by: moppy | October 25, 2008 at 12:07 PM
Cal...I'm not speaking of Leo in particular. I'm talking about taking some agent and holding him/her above the rest as a beacon of honesty and forthrightness only because *now* they claim isn't a good time to buy.
3500 deals closed?
Don't care.
Let me review the ones from 2003-2005. Show me who he was selling to then. Show me that he didn't refer to a mortgage broker that put any of his clients into a toxic loan. Tell me about his connections with the banks.
Frankly....I really don't want to hear S#it from the REIC. I don't care if they go to church, support big brothers, are kind to old people...whatever.
They had their chance.
Posted by: E | October 25, 2008 at 01:23 PM
Looks like Leo can't win. He gives some good advice and people are all over him. Here's a guy with a proven track record of timing the market and I'm encouraged by his 2000 price prediction.
Posted by: el guapo | October 25, 2008 at 05:11 PM
I think Leo didn't sell a whole heck of alot from 2003 - 2005 because the reo market was dead. I think he was mostly surfing. Now he's buried in reo's because he maintained those relationships with the bank people and is reaping the reo rewards.
too bad he's an Oar Boarder though. Just kidding.
Posted by: sobaysurfer | October 25, 2008 at 05:17 PM
Jan 2010? or Dec 2010?
Considering Jan 2010 only a little more than 14 months away, 12 months is a pretty big ballpark to aim at.
Posted by: sandiegan | October 25, 2008 at 06:06 PM
How can I determine if the terms of my lender's loan modification proposal are legal?
Posted by: Janice | October 25, 2008 at 06:09 PM