Monthly Archives: May 2008

How to Be Barbie for a Day: The Opening of the Casa de Barbie

Ever wanted to be Barbie for a day?

Maybe get yourself a glittery hairdo, pink makeup, wear a shiny gown and play with dolls for the entire day. Sounds good?

As for me, well, can’t say I’m interested in doing that, at all. But make a G.I. Joe theme store and I’m there, no doubt about it.

A new store, named the Casa de Barbie (Spanish for House of Barbie or Barbie Store), has officially opened. Young girls wait for hours to get in and mothers make offers on clothes that are just up for decoration. The fanaticism is incredible.

How the Barbie Store Idea Come to Be

Barbie Doll Image on Dark Background

The idea for the store came to Tito Loizeau, 37, in a shopping mall three years ago. He went on to build this Barbie-themed store and it’s been a huge hit in Buenos Aires, Argentina ever since.

The way he tested his idea was to set up a small “House of Barbie” promotion for Mattel (creators of Barbie) inside of the shopping mall. The demand was immediate – and powerful. Kids would want to buy everything in the store – even items that had nothing to do with Barbie.

“It would be a pink shirt you could buy anywhere in the mall,” said Loizeau. “But they’d want the shirt because it was associated with Barbie.”

The Debut of the Casa de Barbie

Photo of the Barbie Store taken outside | Barbie fan on the left and Barbie car on the right

So he decided to open the 6,996 square-foot Barbie “fashiontainment” store – first in the world. In the bubble-gum scented store, girls with a love of everything Barbie get their Barbie hairdos and makeovers at the Barbie beauty parlor and can play with dolls at the Barbie playroom while eating their pink-frosted desserts from the Barbie cafe.

It wasn’t easy for Tito Loizeau to get his Barbie Store open. He spent a year persuading Mattel to license the idea of the store to him. Loizeau, along with two partners, put up $500,000 of their own savings to open the House of Barbie. His group now has exclusive rights to the Barbie Store license in Argentina, Paraguay, and Uruguay as well as first-option rights in all of Latin America. In exchange, Mattel takes a percentage of all sales made in his Barbie Stores and the exclusive right to expand the Barbie Store concept around the world.

Why Do Argentinian Girls Love the Barbie Store So Much?

Young Girl Getting a Barbie Makeover | Barbie Obsession

“I am here because I wanted to have my hair done for my mum’s birthday,” said six-year-old Pilar Tolosa.

Open since September of 2007, the chic Palermo neighborhood in Buenos Aires – home to many high-class restaurants and swank boutiques – has been taken over by the Barbie frenzy.

“There are girls who come every single day,” says Loizeau. “No one understands it.”

To enter the store and partake in the Barbie activities, you’ll be paying $7 an hour. You’ll then recieve free access to play with the Barbie dolls and toys, you can try on the various costumes, makeup, and jewelry. Once you’ve found the perfect Barbie wardrobe to wear, you can walk down the Barbie catwalk runway, where you’ll be strutting under the disco lights and thumping music. The Barbie Store also includes the coffee shop and beauty salon, where you can get a Barbie hairstyle or a painted butterfly on your cheek. You can also rent out the Barbie playroom for your kid’s parties at a starting rate of about $650.

Exclusively for Barbie Fans

Image of young girls dressing up in costumes in the Barbie Store in Argentina.

“It is something that is just for the girls, that is the most important thing and I think that is their most favorite thing. That is what makes them feel special. As soon as they enter they see a place that is exclusively for them, where they are the stars of the store, that was created for them,” says Barbie Store manager Fernando Bosc.

Tito explains that Saturdays are the most hectic days at the Barbie Store. “It’s chaos,” says Loizeau about Saturday afternoons. He says that the Barbie birthday parties bring even more chaos. Some girls “get angry that they can’t go in and they throw tantrums.”

Although a huge hit now, Tito didn’t think it was going to explode in popularity the way it has. He had an initial estimate of about 20 or 30 girls a day but he’s had days with over 150 children coming in.

The Initial Idea for the Barbie Store and How It’s Changed Over Time

Image of a Barbie Girl shopping for Barbie clothes at the Barbie Store in Argentina.

It’s interesting how what he thought would sell well didn’t and that only after conducting various focus groups that he found out what really would sell. He originally wanted to sell glamorous Barbie outfits in kid sizes. Once he did some focus groups with mothers, he found out they didn’t like the idea – even if the young girls would approve. Instead he found that the best strategy was to commission the development of basic kids clothing in a Barbie theme that has matching items for sale. He also initially targeted girls 3 to 9 for the sizes but he found that he needed to create bigger sizes as demand grew from girls as old as 16 wanting Barbie apparel. He even has plans to create adult sizes in the near future.

It also may be surprising to know that the store doesn’t focus on selling dolls – even there are some select dolls for sale. Instead, the focus is on T-shirts, handbags, skirts, and pants in various shades of pink. The clothing is designed and made in Argentina and are available only at the Barbie Store.

Not a Barbie Toy Store

Image of young girl getting a makeover at the Barbie Store in Argentina.

“We’re not a toy store. Girls play here and then they want a Barbie.” says Loizeau.

As far as future plans go, anything is possible. For the near future, Tito Loizeau plans to secure funding in order to open more Barbie Stores in other cities in the neighboring regions of Buenos Aires.

The Barbie Store address is Scalabrini Ortiz 3170 Capital Federal in Buenos Aires, Argentina and they can be visited online at their Barbie Store website: Barbie-Stores.com. The Barbie Store phone number is 0810-4444-BARBIE and the store hours are Monday-Saturday 10am-8:30pm and Sunday 1pm-8pm.

What do you think of the idea of the Barbie Store? Would the idea work just as well in other markets around the world?

Rule to Grow Rich By #2: Refinancing Your Home

This is part two of a series where we’ll be looking at the real estate-related rules in Money Magazine’s “25 Rules To Grow Rich By”. We’ll be taking these rules one-by-one and going in-depth as to whether it’s a rule “to grow rich by” or not. Take a look at the rules we’ve covered at the 25 Rules list.

Rule 2: It’s worth refinancing your mortgage when you can cut your interest rate by at least one point.

I agree with the premise of this rule – it’s usually a good idea to refinance your mortgage loan if you have a chance to cut interest. Especially if you’re early in the life of the loan a 1% drop in your interest really adds up over the course of the loan.

Did you know that the overall percentage of the average homeowner’s income that goes to pay their mortgage has risen 12.6% from ten years ago? That can leave many people scrambling for some sort of relief – a refinance may be a way to do so.

The Reasons Why People Refinance

Mortgage Refinance | What options do owners have?

If you’re looking to refinance, there are many other reasons why you might be considering doing so. For example, you might be under an adjustable rate mortgage (ARM) – which I usually do not recommend for homeowners – and switch over to a fixed rate mortage. You might want to reduce your monthly debt load by rolling your unsecured debt into your mortgage as a temporary fix to your credit situation. You may want to refinance your mortgage into a shorter term – this allows you to pay off your loan faster and build your equity quicker. For example, you might want to take your 30 year mortgage and drop it down to a 20 year loan or even a 15 year loan.

By dropping your loan in terms of total years, you’re really getting a handle on your mortgage. Dropping your mortgage down by a percentage point may often not make a very big difference in the long run in the total mortgage interest you’ll pay in general. But if you get a short term mortgage, especially combined with the lower interest, this will really make a big dent in the interest you’ll be paying over the life of the loan.

What You Need to Know About Mortgage Refinance

There are some hidden costs you need to be aware of when refinancing your mortgage. You’ll have to pay lender fees, which can include points, origination, credit report, application, and appraisal. You may have to pay third-party fees – these vary by state and mortgage company and can include title exam, title insurance, closing, and recording. These closing costs can range from 2% to 3% of your loan amount.

To put it blunty, if you make a mortgage refinance decision, you do it for the long term. It must benefit you over the long haul – it must make sense in this future view context! If you think you might be moving relatively soon, then just stop thinking about refinancing your mortgage. Be aware of what’s out there and don’t get suckered into many of these no cost refinance advertisements you may see on television and get into a bad mortgage refinance decision that can cost you money, time, and major headaches down the line.

As for the topic of refinancing your home to pay off credit card debt, I’d recommend you stay away from this course of action for the most part. Statistics show that more than 85% of people who refinanced to pay off their credit card debt return to the same level of credit card indebtedness within 2 years. Don’t fall into that credit card debt cycle.

This is just such a complex and important subject it’s very hard to recommend any course of action as a blanket path for everyone to take in this situation. You really need to take into account your particular situation, learn what you can about the refinancing process, get yourself a reputable professional that can assist you and then it’s time for you to make your decision.

Revised Rule #2: Refinancing your mortgage is a viable solution if you focus on the long-term and are able to save yourself money in the way that makes sense to you.

Jump Back to Rule #1 | 25 Rules | Jump Forward to Rule #3

Foreclosure Countdown: The Foreclosure Process Step-By-Step

Foreclosure is, unfortunately, a major part of the current real estate experience. It is happening at an alarming rate – more than 405,000 households were foreclosed upon in 2007, up 51% from the amount repossessed in 2006.

I just received an email from one of my readers named Rik who’s asking about foreclosure home auctions and the foreclosure timeline – let’s read:

Hi Michael,

Once your home is sold at a Public Auction by the bank, how long do you have to vacate the property?

Rik

Every state in the United States has their own guidelines, timeframes, and mandates. It usually takes around 2-3 months for your home to get repossessed – however, if you take certain legal action to postpone the proceedings it may take even longer.

Bank Owned Foreclosure For Sale | HUD + VA + Bank of America

Step One: Notice of Default

First step in the foreclosure process is the notice of default. This is a notification that will be sent to you stating that you haven’t made your payments by the deadline. It’ll say that if the money you owe isn’t paid by the time they give you, the lender may foreclose on your home. Others that may be affected may also be getting a copy of this notice as well.

Step Two: The Lis Pendens

Now the heavy duty foreclosure action starts happening. The lis pendens, which is Latin for “suit pending” and often abbreviated as lis pend, represents the first real legal action against you by the lending bank. It is a written notice that the lender has filed a lawsuit against you on your house and demands payment of your loan immediately. If you wanted to sell your home before foreclosure, it is best for you to do this before the lis pendens, because now a potential purchaser can see that this has been filed against you in the public records, making your property less desirable to potential buyers. The reason for the lower desirability is that if someone buys your home after the lis pendens has been served, they are now subject to the decision of the lawsuit. It also makes you much less likely to be able to borrow money secured by the property (for example if you wanted to borrow money to pay legal costs) as lenders will be wary of your lis pendens property.

Step Three: Answer

At this point, you have 20 days to file an answer with the court. My recommendation? Get yourself a reputable attorney in your area with experience to do this for you. There’s a great legal community over at the international law forums that may also give you solid advice. The general idea of what will happen in this step if you need more time is that you will contact the other attorney, let them know you are retaining counsel, and that you ask for a short extension of time to respond to the complaint. Follow this up in writing as you need written proof.

You must answer this complaint filed against you within the allotted time frame given to you (usually 20 days). Otherwise, a default judgment will be given against you which can mean major future financial hardships. Your lawyer will then write them a letter either admitting, denying, or stating you don’t have the sufficient information to answer a section of the complaint. Many times, contacting the lender’s attorney and telling them, “We Deny the Complaint” may buy you some time.

Step Four: The Hearing

Foreclosure Judge | Legal Services You Should Know About

This is where you and your lawyer will present your case and the presiding judge will decide the next step. If there is a valid answer as to why you haven’t made your payments on time, the judge may decide the lender must give you reasonable time to make your payment. Otherwise, the foreclosure moves forward, with the mortgage lender’s legal counsel filing a motion for a Summary Judgment Hearing.

The scheduling of the hearing is often delayed, giving you previous time to get your affairs in order – possibly giving you enough time to execute a short sale (which is when your lender agrees to letting you sell the mortgaged property for less than the outstanding balance of the loan).

Step Five: The Summary Judgment Hearing

This usually happens 45 days from the start of the foreclosure process. The mortage loan lender’s attorney will present the case and you or your attorney can give testimony. Usually, the judge will rule against you and you will be found in default of the mortgage. You will receive a Summary Final Judgment that shows exactly how much you owe the lender, including the loan principal, loan interest, and legal fees.

Step Six: Foreclosure Auction

The judge will know set a sale date for the foreclosure auction of your home, which is often 30-45 days after the Summary Judgment Hearing. Your property will now be sold at the county courthouse steps to any interested real estate investors or homeowners. At this point, you cannot redeem your property – the sale is final. You now have absolutely no chance to save your home and pay off your mortgage. Once the sale occurs, the court will review the sale during the next 10 days to make sure everything has been followed correctly procedurally. Once the auctioned property is certified, the Certificate of Sale is now filed and the title to your home is given to the new homeowner. If no one bids on your property, it then goes back to the ownership of the lender as a REO (Real Estate Owned by the plaintiff).

Step Seven: Sheriff

Sheriff Office & Avoid Jail | How to Stop Government Foreclosure

This is usually 14-30 days from the date of the sale of your home at auction – you will be notified how much time you have to leave your home. At this point, if you still haven’t vacated the premises, the new property owners will have already started the eviction process and the sheriff will arrive at your doorstop and will force you to take you and your possessions outside. You are now not legally able to enter your home – you will be charged with trespassing.