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Fred Glick

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Disney and Real Estate

08-18-09
Fred Glick

If you are in real estate, plan a vacation for this winter, not now.


It's a hot, muggy August pre-sunrise morning and thoughts of beaches and hydration are on people's minds.

Sweat, shorts and sodas are soaking their souls and the thoughts of economic recovery, tax credits and mortgage backed-securities are not nearing their frontal lobes.

(OK, here comes the BUT....)

BUT, we are just over 90 days away from the second real estate bubble explosion in the last few years.

Why? The expiration of the $8000 tax credit matched with the Gestapo like mortgage guidelines, high interest rates and the lack of job creation will blow up the temporary real estate blip that we've seen since the spring.

If you a first time eligible buyer for the credit, you must CLOSE and FUND by 11-30-2009 in order to get the credit.

That means, you need to find a house and start your inspections, mortgage, etc ASAP so real estate agents need to do a 24/7 for their clients in order that they make the timing.

If you are a Seller, don't be ridiculous, if you need to come down a couple of thousand in order to sell, do it because if you don't, you may cry in your egg nog this Christmas because once the credit goes away (which was the catalyst for buyers to get off the fences to begin with), the buyers go back to the Dark Side!

Now, a message for our friends in the mortgage world:

YOU ARE TURNING AWAY GOOD MORTGAGE WITH STUPID NEW RULES

Need I say more? The rules are just stupid for conventional programs and the crap they are allowing into the Government agency loans (FHA) are also nuts.

I again call for all the mortgage bureaucracies (Fannie, Freddie, FHA, VA, USDA) belong into one agency, one set of guidelines and reality to set back in.

Also, each loan needs to have a small insurance fund payment and the government just needs to back each loan, post-insurance so we never have to bail out banks again.

Now onto rates. If you want to stimulate an economy, the basics are that we lower interest rates and we've done that with the Fed lowering the rates to the banks (Fed funds, etc) but what about rates to the public?

Mortgage rates should be very, very low and there should be very easy rate reduction refinances with NO appraisals for people that have the income and good credit.

Most of their loans are already securitized by Fannie and Freddie, so why not let them take a trip to Banana Republic or a trip to Disneyworld to help get the country going so we can add real jobs.

To summarize, if you are a Buyer that can qualify for the credit, get an agreement as soon as possible because Sellers may raise prices in the early part of September to capitalize on the end-of-the-credit people looking to get their share.

If you don't qualify for the credit, wait until the week before Thanksgiving to start looking.

The buyers will have been sucked out like a vacuum cleaner on high and the winter will start coming in.

Sellers might get into a realistic mood and sell at a lower price.

The other idea is to wait until January or February when they may be suffering more and not have the idea that spring is around the corner.

So real estate people, it's hard work followed by Disneyworld!

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In the housing market, still waiting for dust to clear

05-29-09
Fred Glick

I was quoted today in the Philadelphia Inquirer talkaing about interest rates.

The traders have bumped oil prices. Remember last time they did that? We started to go into this Decession.

Read the article in full by clicking here.

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$725,250

04-20-09
Fred Glick
Great news! I am happy to report that we are now able to do loans with the new and updated Fannie Mae mortgage limits! Those of you in the LA and Orange counties along with the Bay Area, you can now get the higher loan amounts for fixed and ARMs! For some ridiculous reason people on Philadelphia that can afford the higher amounts, you can only go to $420,000. Just plain dumb!
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PA to offer grant for small business energy improvements!

03-23-09
Fred Glick
Pennsylvania Small Business Energy Efficiency Grant Program The Department of Environmental Protection announces an upcoming grant opportunity for small businesses undertaking energy efficiency projects. The Small Business Energy Efficiency Grant Program provides a 25% matching grant, to a maximum award of $25,000, to enable a small business in this Commonwealth to purchase and install energy efficient equipment or processes that will result in improved energy efficiency. An eligible applicant must be an independent for- profit small business with 100 employees or less whose business or facility is located within this Commonwealth. Small businesses that are eligible include manufacturers, retailers, service providers, mining businesses and agricultural operations. The project to which the grant will apply must save the small business at least 20% annually in energy related expenses with a minimum dollar savings of at least $1,000 per year. Only project costs incurred after the grant opening date of January 12, 2009, will be eligible. For questions regarding the eligibility of projects, visit the grant's web site at www.depweb.state.pa.us (DEP Keyword: Small Business Energy Efficiency Grant Program) or contact Dave Barnes, Office of Energy and Technology Deployment, Small Business Ombudsman's Office at (717) 783-84111 or ra-sbgrants@state.pa.us before submitting an application. For assistance in submitting an application, persons may also contact the Small Business Development Center's Environmental Management Assistance Program, at www.askemap.org or (877) 275-3627 or the Pennsylvania Technical Assistance Program, at www.penntap.psu.edu or (814) 865-0427. The grant application and guideline package are available on the Department's web site at www.depweb.state.pa.us (DEP Keyword: Small Business Energy Efficiency). The application package contains the materials and instructions necessary for applying for a grant. Applications will also be available by contacting the Department of Environmental Protection, Office of Energy and Technology Deployment, 15th Floor, Rachel Carson State Office Building, 400 Market Street, P. O. Box 8772, Harrisburg, PA 17105-8772 or (717) 783- 8411. Applications must be postmarked or hand delivered to the Department between January 12, 2009, and May 1, 2009. Grants will be awarded to eligible applicants on a first-come, first-served basis. A total of $3 million is available for this grant round.
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Unstimulating Stimulus....It's the Jobs Congress!

02-06-09
Fred Glick
3 Comments