Less is more

If you're new to investing or real estate and don't know the first thing about interest rates, here's a good tip: the higher the interest rate, the more expensive it's going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose.

Not even the Fed knows for sure

The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where

things are today including your budget, your needs and your future plans.

Locking in rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't run out before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $300, through your loan agent as soon as possible.

Don't obsess and miss a good real estate deal

Although rising interest rates can create more problems for homebuyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in the event that interest rates come down.

Visit again soon! I have more information that you will need!

Just a few tidbits here to remind us all why we should be buying homes NOW!

1. Value Driven Prices- in many markets houses are priced right to give the best home value. We just have to remember to get the deal done, don't stand in the way of completion.
2. Interest Rates are at Historic Lows- low fixed rate and adjustable rate programs are still available through your local lender. Sure it may seem impossible to qualify many of these folks but it can stil be done with a little innovation and strategy, the point is to just do it!
3. Great Incentives Everywhere- many sellers and yes even some banks are offering incentives to get the deal done. The biggest thing to remember is that price is NOT everything. The whole deal must be taken into consideration and what is best for the clients in the long term.
4. Tax Benefits- the government is still giving out those great incentives of mrtgage and property tax deductions. Don't miss out now when tax rates move higher in the future, this will be your best inflation hedge today.
5. A Great Investment- while buying a home to live in is the worst financial investment you can make, it can be great as a long term hold strategy where you can rent it out in the future when rental rates catch up to your debt load (not just mortgage payments)....for agents a properly financed deal now will bring in more clients later.
6. Take Control of Your Life- lock in a fixed rate loan now so you know your payments, get on an acceleration plan to pay it off and buy some more houses in a couple of years, tremendously oversimplified here but that's the point

Those who buy now will be loving life come 2020....so go out there and have at it!

It's real...a debt free life. Here are 7 steps toward helping you improve your current financial life and over time become debt free.

1. Cut Expenses to Eliminate Debt

Temporary adjustments to your spending life can have an immediate impact on your plan to become debt free. It's wise to cut expenses that are "wants" and not "needs".

2. Adjust Your Income

After you've whittled down your expenses to must-haves, it's smart to investigate the chance to bring in extra income. Whatever the case, the important thing to remember is to be creative in identifying income-producing opportunities to help eliminate debt.

3. Find Help To Eliminate Debt

Sometimes asking for help is tough, but there are resources available if you need financial assistance on your quest to eliminate debt. Local churches often provide services to help people pay bills and put food on the table, while other organizations like the YMCA or YWCA are sources for help with child care expenses.

4. Prioritize Bills to Create A Debt Free Life

Make sure you're smart about what bills are paid first. Also, your utilities are best paid promptly. Be sure when making your decision, put your family's basic needs first. There is no point to being debt free and eliminating debt if you're going to be living on the street.

5. Chat with Creditors About Eliminating Debt

Most creditors are willing to work out a solution if they know you are committed to paying off your debt. Start out by calling them. Debt negotiation works but you have to be willing to get out of your comfort zone and pick up the phone if you want to eliminate debt!

6. Investigate Bankruptcy

It's a very extreme solution and only makes sense if your debt is downright unbearable. Check with an attorney to see if it's right for you. It may seem like a quick way to achieve permanent debt relief & fix your money problems, however, bear in mind, its future consequences can be tough like difficulties in buying a car, obtaining a loan for college or buying a home.

7. Look to the Future of Your Debt Free Life

Becoming debt-free is an honorable goal. Regardless of your situation, you can do it if you make eliminating debt your goal. With a little hard work and patience, you can be debt-free and achieve total debt elimination!!

Quality Real Estate Investment Education

This meeting will be held in the City of Dowoney, CA

Prospective, New and Seasoned Agents seeking to learn what the other side thinks and how to separate themselves from the pack are invited to attend an evening of refreshments, networking and education.

The best return you will ever make on your money is a little time investing in yourself first!

When? Thursday, February 12, 2009 7:00 PM

You will be my personal guests so please call or email me with your RSVP so I can put you on the guest list, seating is limited!

Where: Please RSVP the number of guests you are bringing. Since we are expecting a large turnout, we want to make sure we can accommodate everyone i.e. chairs, refreshments, etc. Address will be provided upon RSVP

Please RSVP by Tuesday, February 10, 2009

TOPIC: ASSET PROTECTION AND LAWSUIT AVOIDANCE TECHNIQUES YOU MISSED IN RE PRINCIPLES CLASS

Please feel free to invite a guest or pass this along to anyone who might be interesting in real estate investing.

1. Get "Pre-Approved" - Not "Pre-Qualified!"

Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the

strength of the buyer or the length of escrow, are critical to a seller.

In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!

Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.

So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days

to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buy the House

If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You've found the perfect house - now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting

for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.

Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.

3. Play the Game of Nines

Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.

When house hunting, keep in mind the difference between "STYLE AND SUBSTANCE". The SUBSTANCE is the set of things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.

Consider each house on its underlying merits, not the seller's decorating skills.

4. Don't Be Pushed Into Any House

Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one.

A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically under priced, and you'll know if it is.

Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.

5. Stop Calling Ads!

Please note - ads are sometimes created to make the phone ring! Many of the homes have some drawback that's not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is.

For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is having someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel

comfortable with and enlist the services of that agent as a buyer's broker. Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN?

ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he's going to call? His client, who he has a legal obligation to work hard for you, or someone who just called on the phone and said "keep your eyes open"? So to get the best buy on a property, I always recommend that you hire your own agent and stick with him or her.