“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Ricardo Cobos

Ricardo Cobos

Blog_tag

"Republican Advice"

05-18-10
Ricardo Cobos

“That’s Republican Advice”

A friend called me yesterday for some advice on a real estate transaction. Whenever anyone calls me for advice I am humbled and honored because I know what a serious decision it can be, especially in these uncertain economic times. But because I am in the business of mortgages I often receive calls from friends for advice. What made this call unique is that my friend and I have a relationship that extends more than two decades and who I would consider one of my best and most genuine friends but we couldn’t be more different politically and as a result we often have to put it mildly spirited debates. In spite of this it was still me that he called for advice.

The deal he wanted to engage with a long-term family friend of his involved my friend assuming a majority of the risk and very little reward. In fact the only way that my friend could benefit would be from his friends loss of initial principle investment with the deal going south and thus likely resulting in the loss of his friendship with that person.

After listening to him share with me his reasons for why he thought this was a good business opportunity (and there were numerous but none that didn’t end badly) I suggested that he pass on this deal altogether because of the following reasons in order of their merits;


1) There was no potential for profit without the loss of his friend’s principal investment and thus the relationship with that person.
2) The risk to him and his family was too great for the little profit potential existed.
3) Engaging in this deal would likely prevent him from being able to take advantage of a real investment opportunity which could actually result in profit without anyone that he knows, likes and trusts having to be injured in the process.

*Disclaimer – all real estate involves risk and sometimes people sustain losses in those transactions, hence the nature of a free market. But to engage in a for profit deal where the only way you make that profit is by someone else losing in my opinion is not a formula for success. In lending we call that Predatory Lending and it is illegal.

When I revealed to him these opinions, he said to me “because you are a Republican I figured you would say something like that”.

Recently the word Republican, like (fill in the blank) “Banker” has been used interchangeably to disparage (and is often incorrect) my business but what made this stand out to me was how he said it. It was almost as if it was a disparaging remark and he was sorry for having used it!

Given the context I understood that what he really meant to say is that he trusted me to give him the advice that was unpopular because when he called me that’s what he needed but what he really wanted was for me to tell him was it was a great deal and that I couldn’t wait to help him get started by making him the mortgage!

In the end I lost an opportunity to make a profit but I retained a friend and a friend also retained a friend and hopefully those friends will find other opportunities to profit that don’t require one of them to be injured in pursuit of those profits.

I don’t know if the advice was “Republican” advice or not, all I really know for sure is that was “Ricardo’s Advice”. If you or anyone you know would like to receive this kind of sincere advice from a friend in the business I always have time to make new friend.

Sincerely,

Your Friend in the Business,

Ricardo Cobos


3 Comments
Blog_tag

Mortgage Rates Rise on Improving Economic Data

04-24-10
Ricardo Cobos

Saturday April 24, 2010
The Inside Edge

The market commentary material provided is from a third party vendor, MBSQuoteline, and is not necessarily the opinions of the employees or staff of SunTrust Mortgage, Inc. This information is intended for educational purposes only and should not be construed as investment and/or mortgage advice. Additionally, the material is deemed to be accurate and reliable, but there is no guarantee it is without error.

Mortgage Rates Rise on Improving Economic Data

While inflation remained low, stronger than expected economic data released this week was negative for mortgage markets. As a result, mortgage rates ended the week a little higher.

The big news in this week's economic data came from the housing sector. March Existing Home Sales rose 7% from February, and existing home sales were 16% higher than one year ago. Inventories of unsold existing homes fell to an 8-month supply, from 8.5-months in February. March New Home Sales were even better, jumping 27% from February to the highest monthly rate since last July. This marked the largest single-month increase in new home sales since 1963. The chief economist of the National Association of Realtors (NAR) credited the homebuyer tax credit for the strong March housing data. Buyers must sign a contract by April 30 to take advantage of the tax credit, so the April data should benefit as well.

Friday morning, CNBC reported that support is growing among Fed officials to begin sales of mortgage-backed securities (MBS) from the Fed's portfolio. In a program which ended March 31, the Fed purchased $1.25 trillion of MBS to help lower mortgage rates and boost the economy. According to CNBC, "at least" six members of the Fed's policymaking committee support near-term MBS sales if the economy continues to improve. The selling could begin as soon as the third or fourth quarter of this year. Fed Chief Bernanke still views the likely time frame to begin MBS sales as next year, but his recent comments have indicated a willingness to keep more options open. With the next Fed meeting taking place on Wednesday, the 2:15 et release of its statement will take on added significance. If the Fed actually conveys an intention to begin to sell MBS soon, mortgage rates would be likely to rise on the news.

Also Notable:

  • The Producer Price Index (PPI) core inflation rate rose at a low 0.8% annual pace
  • A popular measure of business investment rose at the fastest rate in 9 months
  • First-time buyers accounted for 44% of existing home sales in March
  • The Treasury will auction $118 billion in 2-yr, 5-yr, and 7-yr securities next week

New Home Sales (in thousands)

Average 30 yr fixed rate:
Last week:
-0.10%
This week:
+0.05%
Stocks (weekly):
Dow:
11,150
+150
NASDAQ:
2,525
+50

Week Ahead

The big story next week will be Wednesday's Fed meeting. No change in rates is expected, but investors will be closely watching for hints about future Fed moves to tighten policy or to sell assets. Friday's Gross Domestic Product (GDP) report for the first quarter will be the most significant economic data. GDP is the broadest measure of economic activity. The Chicago PMI Manufacturing index will also come out on Friday. Consumer Confidence and Consumer Sentiment will round out the schedule. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Brought to you courtesy of

MBS Quoteline

0 Comments
Blog_tag

Raleigh North Carolina is 3rd best city in the country for business and career!

04-14-10
Ricardo Cobos

According to Forbes Magazine Raleigh North Carolina ranks number three in the nation for the best place for business and your career. If you are considering relocation to Raleigh North Carolina for a career move, when you consider Provo and Des Moines are just short of "are you kidding me cold" in the Winter, three ain't half bad!


Special Report

Best Places For Business And Careers

04.14.10, 06:00 AM EDT


1 - 2526 - 5051 - 7576 - 100101 - 125126 - 150151 - 175176 - 200
RANK METRO AREA COST OF DOING BUSINESS (RANK)1 JOB GROWTH PROJECTED (RANK)2 EDUCATIONAL ATTAINMENT (RANK)3 METRO AREA POPULATION (THOU)
1 Des Moines IA 49 10 46 563
2 Provo UT 20 39 38 556
3 Raleigh NC 22 14 12 1,126
4 Fort Collins CO 34 21 11 298
5 Lincoln NE 14 72 30 298
6 Denver CO 113 49 22 2,552
7 Omaha NE 48 54 56 850
8 Huntsville AL 112 2 37 406
9 Lexington KY 25 32 39 471
10 Austin TX 160 12 19 1,705
11 Ogden UT 30 105 100 542
12 Colorado Springs CO 90 50 29 626
13 Cedar Rapids IA 44 1 118 256
14 Boulder CO 136 17 1 303
15 Fayetteville AR 22 35 133 465
16 San Antonio TX 11 9 137 2,072
17 Charlotte NC 42 31 53 1,746
18 Seattle WA 158 83 14 2,611
19 Portland OR 106 104 43 2,242
20 Salt Lake City UT 62 70 70 1,130
21 Asheville NC 10 114 87 413
22 St. Louis MO 40 41 82 2,853
23 Durham NC 107 84 10 501
24 Columbus OH 77 55 48 1,802
25 Boise ID 8 107 96 606
1 - 2526 - 5051 - 7576 - 100101 - 125126 - 150151 - 175176 - 200


1Index based on cost of labor, energy, taxes and office space. 23-year annualized figures. 3Share of Population over age 25 with a bachelor's degree or higher. Sources: Moody's Economy.com; Sperling's BestPlaces; FBI; U.S. Census.
0 Comments
Blog_tag

SunTrust Mortgage Announces the Return of Construction Loan Financing

04-12-10
Ricardo Cobos
Construction Financing from SunTrust Mortgage
1 Comment
Blog_tag

100% Loan Financing for Medical Doctors, Residents, Interns and Fellows

04-10-10
Ricardo Cobos
Loan Program for Medical Doctors Only
View more documents from Ricardo Cobos.
0 Comments