Small Business Success, your home for small business advice ranging from financing to marketing.

Deals to Get Excited About! 8/25/2008

2008-08-24T13:15:00.000-07:00

Here are this week’s SMOKIN deals that deserve this kind of attention! What are you waiting for? The invitation isn't in the mail, it's up to you to make the move! Renters, WHAT ARE YOU DOING throwing your money away every month? How would you like to increase your monthly cash flow while also investing in your future by purchasing a home for you and your family? You can own for less than you can rent RIGHT NOW! Without further delay, let's get to the deals of the week!

Murrieta Fixer with HUGE Potential!
This three bedroom two and a half bathroom home has lots to offer! Most notably though is the price! This home is only $117.00 per sqft.! That is an amazing price for Murrieta living!

This home was foreclosed on in the middle of a remodel so a lot of the work is done for you! This home presents an enviable value that is sure to make the neighbors talk! Act fast because this is one of the lowest priced, best value opportunities in Murrieta! Sure not to last. Can you imagine, owning a home in Murrieta California for less than $1,000.00 a month? I can, thanks to this little beauty! Your monthly obligation would be less than $900.00 a month plus taxes and insurance! Get moving and stop paying your landlords mortgage! First time buyers, you may be eligible to put only 3% down! That’s less than $5,000.00 down! Don't wait, call today!

ARE YOU KIDDING ME! A HOME YOU CAN BUY ON A CREDIT CARD? That's a DEAL!

This home is arguably the best deal in years! This home is on the market for less than it sold for in 1994! Recently remodeled bungalow in Lake Elsinore, this home is the ideal bachelor pad or first time homebuyer deal. This is officially my "Deal of the Week" and probably could be my deal of the year!

This home is located on a quiet street in Lake Elsinore, minutes from the lake and is situated on a corner lot that is almost a quarter of an acre! That is huge! RV parking and plenty of room for your toys! If this home isn't enough to get you excited then I don't know what is! Total monthly overhead on this home is only about $352.00 per month plus taxes and insurance! Seriously, 352.00 per month! That is less than you can rent a room for! Call today to see it so that you can believe it!

Another Bungalow Gem! At an Astounding Price!
This home is the professional commuters dream! Equal distance to Los Angeles and San Diego, and less than an hour from Orange County. The money you spend on gas will more than be made up in the lack of mortgage payment! This home needs little work, but can easily be called home as is! This price of this home is amazing when compared to the size and functionality. Features include a gated yard, covered patio, chair rails in the "office"/third bedroom and more!

With a low payment of $436.00 per month plus taxes and insurance, this home screams "Buy ME!". So what are you waiting for? Tell me where in beautiful Southern California can you live in a 3 bedroom home for less than your car payment? Absolutely amazing! Low 3% down payment may be available for qualifying individuals, but even if you had to put more down, with this low price I doubt it would break the bank! Call today and let's get started!

Deals to Get Excited About! 8/18/2008

2008-08-17T21:51:00.000-07:00

Here are this weeks deals to get excited about! Don't wait, if you are in the market you can't afford to pass up these deals! Lake Elsinore, Murrieta, Wildomar, and Canyon Lake real estate sales specialist. Repos, Approved Short Sales, and desperate sellers that need to sell yesterday! Truly a buyers market, and truly your opportunity! Millionaires will be made in this down cycle, will you be one of them? Contact me today for your opportunity to work with the best in the business and to view my private collection of deals in Riverside County!

Lake Elsinore First Time Home Buyers! Investors!

Own this home for nearly $100.00 per sq ft.! That is less than you can build for! This home cash flows as a rental even in a challenging market! With a mortgage of $480.00 and taxes and insurance of $144.00 a month you are looking at total out of pocket expenses of $624.00 a month! How can you go on renting for nearly twice that or more? Investors, are you listening? This is opportunity knocking HARD, ringing the doorbell, and looking in the mail slot, somebody open the door and grab it! This deal will probably be gone by the time you read this, but call and check anyway!

It Would be Hard NOT to Make Money on This One!

How do you spell "Good Choice"? How about -over 1,100 sq ft. for under $100,000 in Southern California-? That sounds like "Good Choice" to me! $84.25 per sq ft. is unheard of in SoCal! Whether you are are buying your first home or building a portfolio of properties this one is most definitely worth a look! This home has the potential to rent for anywhere from $1,100.00 to $1,400.00 per month, with a total overhead of about $670.00 per month including taxes and insurance! Talk about easy money! It's time to make the move! Call today and schedule a showing of this home or the many more deals on the market!

Will Somebody Please Just Sell Me A Product!

2008-07-28T22:03:00.000-07:00

With the recent mortgage meltdown and subsequent crash of the real estate market here in the US and abroad, one must ask themselves... how are fortunes going to be made in this down cycle? Some would have you believe that now would be an excellent time to start your own business, I happen to agree. However, starting your own in business can be a daunting task as many out there are already painfully aware, but the upside potential in enormous! There is NO DOUBT that owning your own business is the way to wealth regardless of race, gender, or geographic location. However, I would caution that you thoroughly research the ins and outs of the business in which you are ready to invest.

A good friend invited me to a launch party for his new company at his brand new office in Temecula. He said that it was an open house for all of his friends and family to see what he had started. I was thrilled that he was breaking away from corporate America to strike out on his own. I had heard that he had been studying form months to get his insurance license and was fascinated by the securities industry. I asked what he had started and he said that it was an investment company. I couldn't wait to congratulate him.

When I arrived at the office, it looked oddly like an executive suite building that I had been to once before. As I walked up to the door, my friend met me at the door. I watched several very well dressed individuals walk in and out of the door while we said out hellos. Once we walked in, he asked me to sign in, and specified not in the agents section. Wait a minute, agents?? Immediately the alarm sounded in my head, "MLM". I cordially signed in on the paper lying next to the Party City $5.00 name tags. This was all the confirmation I needed.

As I was shown around I met several individuals with titles like Senior VP, Assistant Vice President, and Executive. Everyone was dressed very professionally, and had a wonderful smile. It was show time. Suddenly in the midst of talking with my friend, he turned and said, "Adam, I think you would be perfect for this position. I think you would do really well." I had to hold back my smirk, I bet I would be perfect. I asked him as politely, and sarcastically, as I could, "what is it you sell again?" Suddenly he began to justify himself by spewing gobs of information about life insurance and how he loved his wife and that is why he is selling it to others. Spare me.

I politely excused myself from the festivities, pretty much asked him to get some more snacks and darted out the back door, and never looked back. I can't be mad at the guy, he wants to build wealth! He is just not going about it the right way. I think he just doesn't realize that 3% of people ever make money in an MLM. Or maybe he doesn't know that the structure and ideals of the "pyramid" are ethically skewed. I would caution anyone considering joining an MLM to check out this website to learn more about the flaws of an MLM.

Trust me when I say that you WILL lose friends by not joining or worse yet- attempting to educate them on the dangers of an MLM, but you WILL save money by avoiding this modern day scam. Don't you expect to be offered a product to buy before a position in the company? Let's use a little common sense and snuff this "business model" out. Friends don't let friends join a multi level marketing organization.

A Hard Question...

2008-04-28T21:54:00.000-07:00

Today, I sat with a couple regarding a secured credit card. They expressed how excited they were to build credit. They wanted to give $2,000 toward the secured credit card to obtain a line of equal value. The wife is a famous Latin American singer and brings in about $80,000 per year. The husband is self employed and earns close to the same amount. Money obviously was not a problem here.
As we talked about the credit card and how to establish credit quickly and effectively, the "hard question" was raised; "How will foreclosure affect the interest rate of my credit cards?" asked the husband. I explained the new bankruptcy laws. Should he default on one loan, the other creditors would have the right to adjust their interest rates to compensate for the risk. He explained that he had always paid his other credit cards on time, hoping this would make a difference. When I told him that it did not, he was upset and confused. Again, I tried to explain that it is risk based pricing and that he would pose a higher risk to all the lenders that had outstanding debt with him.
Seeing how upset the man had become, I tried to get a little more information about the situation. I asked him why he was so concerned about this. He told me that he was, in fact, losing his home. At first, I was concerned, but as he went on, I was disturbed by his response. With his 13 year old daughter and 9 year old son sitting at my desk with him, he expressed his opinions to me. "It's not fair! It's not fair that I bought this house for $400,000 and I could get little more than half that if I sold it today". I was shocked. This wasn't about an adjustable rate mortgage. This wasn't about bait-and-switch sales tactics. This was about what was fair? I couldn't believe what he was telling me. I wonder how many others out there are thinking the exact same thing. How unfair it is that they have to carry a debt that could have been less if they had only waited. Wow, what if we all thought that way. I bought milk yesterday. Today it's on sale. Should I go back to the store and demand that they take it back and give me the sale price?
What's worse than this thought process is the fact that they are teaching their children that this is acceptable behavior. The children looked to me while he expressed that his situation was "not fair", almost like they needed confirmation that this was acceptable. I tried to focus on their father, but I didn't know what to say. I could have lit into him about how unreasonable he was. I could have told him that this was a "hard question" and that the choice was theirs to make. I didn't even get a chance to respond before they told me that they would be buying another home before they foreclosed on this one. Wow! With attitudes like this being passed down from one generation to the next, real estate as an asset class is sure to decline in value. Is this the attitude to keep? Buy a home! If you make money, Great! But if you lose money, just leave your debt. Only accept the responsibility if it turns out well for you.

2008-02-02T11:49:00.000-08:00

Small Business Success

Small business is the backbone of our economy here in the US. Did you know that about 70% of the businesses in United States are Sole Proprietorships? About 10% are Partnerships and about 20% are Corporations. The issue that most small businesses have is finding the answers on how to start. My firm specializes in getting your business off the ground and moving! Below you will find some resources that may answer some of your questions, for anything else don't hesitate to call me, Adam Clarke @ 951.318.1162.

Web Resources

This is a link to the SCORE website full of great information for small business. The SCORE organization was founded and staffed by working or retired business owners, executives and corporate leaders who share their wisdom and lessons learned in business.

Spot Runner is an affordable take to marketing. This company not only has the contacts you, as a business owner, need to get your face on TV, they make it easy. The problem most business owners have with putting their company on TV is making the ad. This is where Spot Runner shines, they have hundreds of pre-produced ads that can be tailored to include your company info and logo. Hi-quality and low-cost solutions to marketing and brand recognition.

SBA, or the Small Business Administration is an excellent resource for any business owner. Not only do they offer loans and credit products, but they offer online training to help small businesses get the knowledge they need starting out. This site will walk you through building a business step by step, from the business plan to accounting and financing info.

And finally, probably your most valuable resource is going to be Access Financial Services. We specialize in business, from accounting to marketing to graphic design. We are here for you and your goals of success. If there is anything we can do for you please don't hesitate to contact us. Call Adam direct at 951.318.1162 or email me. Thanks for reading.

It's Alive, IT'S ALIVE!!!!.....

2008-01-31T11:47:00.000-08:00

The Fed's decision to cut rates another 50 basis points (.50%) may be just what we need to jump start this market. Last week when the Fed met for an emergency session after world wide turmoil in the stock market, they cut the Fed Funds Rate by 75 basis points (.75%) to curb a global sell off. After the cut there was a noticeable movement in the real estate market, at least in the Riverside County area. Fence sitters decided to move forward and timid, would-be buyers poked their nose out from under the mat.

What's It All Mean?

Lets take a look at this for a moment though, what does it mean? Well the average consumer thinks the cut by the Fed means lower mortgage rates and an opportunity to own more home for less. That is true, however, not just yet. When the Fed cuts the Fed Funds Rate it will immediately affect short term debt like credit cards, home equity lines of credit, and auto loans. Are you thinking about getting a new ride, or maybe you are one of the few that still have equity in your home and need to tap it, in these situations you win, and right away.

Are you currently in the mortgage process? If you are getting a loan now and haven't locked the rate, or you have been shopping rates lately, don't be surprised if your rate actually ticks up a little. Traditionally, mortgage rates actually spike-up right after a reduction in the Fed Funds Rate. Why? Because the Fed is supposed to cut the rate to hedge inflation, if inflation goes up then bond traders sell. The bonds are what our mortgage rates are based on, the higher the price of the bonds the better pricing of your mortgage loan. Keep that in mind when shopping for a loan. However, there is a light at the end of the tunnel, mortgage rates will go down following the Fed Funds Rate, it just takes a little longer than most would think.

Stimulating Stimulation Package

2008-01-29T18:45:00.000-08:00

Today the house approved what is being called an "Economic Recovery Plan". The bread and butter of this plan is basically a tax refund check for individuals of $600.00 and couples filing jointly of $1,200.00. To qualify you have to have at least $3,000.00 in income with more of the money going to those that have children and less going to the upper echelon of the taxpayers.

The plan is currently at approximately 146 billion dollars, but could be added to by billions more when it goes through the senate. The senate has plans to reduce the amount of the refund per person, but add to it billions of dollars earmarked for seniors and those that are unemployed. Why exactly would we give a tax refund to those that are unemployed? Didn't make sense to me either. Also, the senate's plan would include checks for all taxpayers including the very wealthy. Sounds good to me, I mean if we are going to throw money at a problem who cares who picks it up, right? Also included in both plans is incentives for small businesses for purchase of equipment and other business related purchases. I couldn't find much detailing either sides details of the small business portion of the bills.

Now for my take on this mess. The trouble all leads back to the housing industry. Everyone thinks that the economy is doomed to turmoil until the housing market heats up again. This may be true, however the artificial stimulus is going to help for about 30 days. Everyone is going to get their checks, blow 'em on beer and strippers and go back to hating life. We have enjoyed a long ride on the housing bubble, but as a wise man once said, "The party's over and now it is time for the hangover". Why can't anyone see this for what it is? There were so many new homes and homeowners added to the market so quickly that the market didn't have the opportunity to acclimate the new growth in a stable manner. There is going to be a period of pain, no doubt about it, but if we are not careful there could be even more pain. The Fed ripped the scab off last Tuesday. They couldn't let it heal because they are afraid of walking through the painful period that is inevitable. The Fed's job is not to save the housing industry just like the governments job is not to save the consumer from themselves. The Fed's job is to guard against inflation and the governments job is to protect the rights of personal property. Let the market heal itself, that is what it does. The markets have always been cyclical and will be in the future. This time it is going to be a particularly painful down period, but then again it was one hell of a party.

What a Time to Buy!

2008-01-19T22:02:00.000-08:00

If you are in the market to buy a home right now you are in luck. It just so happens that there are many people, as well as banks, desperately looking to sell. This means great deals and even better opportunities. The price is not always the most important thing when buying. It's finding a great balance between price and interest rates. The average 30 year fixed mortgage is at 5.43%* according to Bankrate.com and the prices of homes are near the 2002-2003 levels. I don't think you could wish for a more perfect combination.

Are you looking for a home that you can live in and enjoy? One for you and your family? This is the prime time to buy. If you are planning owning your home long term the 30 year fixed rate is at near historic lows, home prices are a steal right now, and there are banks and sellers willing to do just about anything to get out of their home. Utilizing the down payment assistance program you can actually have a seller contibute the down payment on your new home. Obviously you can negotiate for just about anything when buying a home, but in this market buyers have the upper hand. If there is something that you want from a seller or something that you want done a certain way, don't hesitate just ask! From seller financing or seller concessions all the way to a piece of furniture that you really liked while viewing the home. The odds are in your favor that you will find a seller willing to jump through the extra hoops to get their home sold.

Let's take a look at this from another perspective, as an investment. I have had the pleasure of being networked with some of the best in the real estate industry from around North San Diego and Riverside counties, and am updated routinely on the best deals on the market. Take "Teterington" for example; a 2 bedroom 1 bath home with a studio apartment in the back, located about 74 minutes from both L.A. and San Diego and about 45 minutes from Orange Ca. You could rent the house for $800.00 and have it rented all year and get $350.00 for the studio. The home is selling for just under $100,000. Your mortgage payment would be about 750.00 including your taxes and insurance with 10% down. So you invest $10,000.00 into an investment and receive $400.00 a month positive cash flow plus any appreciation on the property itself. It will take just 25 months or just over 2 years to get the money that you put into the investment back and after that it is all profit, less the governments share.

Now is the time to invest in real estate here in Riverside county. Fuel an investment portfolio that will sustain and grow year after year with a solid investment that has proved itself cycle after cycle.

Residential Financing is Changing in Lake Elsinore

2008-01-13T14:10:00.000-08:00

I am sure you had already guessed that based on the news reports every single DAY! Let me tell you just a couple of the ways things are changing and how you can stay above the crowd.

First, be realistic. I don't want to come across condescending, but many consumers still have the rose colored glasses of 2003-2004 on. Here in Lake Elsinore California, real estate values have plummeted. Your home is worth anywhere from 40k to 300k less than it was 4 years ago. The market has changed drastically and your home needs to be a better deal than the 4 foreclosures in your neighborhood if you want to sell. Who can you blame for the mess? The irresponsible people that bought homes they could not afford. The dentist turned "Investor" that speculated the double-digit appreciation rates would continue indefinitely and bought 3 "Flips". That brings up another point, the old adage in real estate investing is, "The only losers in real estate investing are those that speculate". You can't time the cycle, no one can. It can be a long drawn out cycle like we had just recently or a short violent cycle. You can't catch the bottom and you'll never get out at the very top. Consistent investing strategies will hold true. Buy and Hold. If you can't afford the home at the full payment without a tenant don't buy it. Also, one of the greatest investors of all time, Warren Buffet, said this little piece of investing gold; "Be fearful when everyone else is greedy, and be greedy when everyone else is fearful". That is why the smart investors are picking up cash-flowing properties all day long in todays market.

Second, kiss the neg-am loans good-bye! And good riddance! These loans are a plague. In my entire mortgage career I have done one of these loans and it was for a family member who's husband was leaving her. She couldn't afford the payment and needed to keep the house. I explained to her that it was a band-aid and that she needed to get out of the loan as soon as she could afford it. These loans, if used properly, have a place in an investors tool belt and nowhere else. These loans will cost you your home if you are currently in one. The theory behind them was adding 3-4% a year to the balance of your mortgage would be negated by the appreciation rate that was historically at anywhere from 6-8.5%. Made sense if you were shortsighted. Now that the value of homes has dropped by a minimum of 10% in Southern California it doesn't seem to make much sense anymore.

Also, stated income loans are going the way of the dinosaurs. There is legislation in congress adding more regulation to the finance industry including the banishment of stated income loans. So if you are self employed and you take legal tax deductions like mileage and depreciation of business assets to offset your income you are in for some hurt. If congress has there way you will play hell getting approved for a loan. Even worse are those that set up a sub-chapter S corp. You get paid a salary from your corporation and also own it. Your salary probably doesn't reflect your true income so you would normally go stated income with verified assets. How will it work now with the new legislation? I'm not really sure, but it will probably include a more commercial approach to underwriting the loan including adding back depreciation, mileage, and the write-offs that don't reflect true loss of income.

I will be writing as often as possible in between marketing and working with clients with updates on Lake Elsinore finance and real estate issues both commercial and residential. If there are any topics you would like me to comment please email me and let me know.

2007-11-25T21:34:00.000-08:00

Credit Card Receivables Financing

A new option for quick cash

Do you work with a merchant services company to provide your customers with the ability to use their Visa, Mastercard, or other branded credit/debit card? Did you know that this could be a viable option when times get lean? The option is there for you and the terms are pretty straightforward. This form of financing works well with restaurants, fast food stores, or mom and pop bakeries.

Speed is the name of the game with this route. If you need money and you need it yesterday, this option will work well for you. You can expect funds within a week or two. The process starts with an easy application. You are then given a preapproval within a few days, assuming all of the information provided is true and correct. You can typically expect anywhere from 70-150% of your average monthly credit volume, limited to about $150,000.00 per location. They base the average on the past 4-6 month card sales.

Payments are even easier than the process. Through this process you actually sell a fixed amount of your future credit card sales. A fixed percentage of your daily credit card receipts is automatically retrieved through the card processor until the obligation is paid. Unlike traditional loans, there is no fixed payment amounts and no lump sums due every month. Instead it is a small percentage taken out everyday improving your overall cash flow and this gives you more time to run your business.

Interest rates are the best part. There is none! Also, there is no set term. No personal collateral is required to make the loan. You don't have to risk everything to your capital needs. In addition, since you pay a small percentage from your daily sales, there is no risk of late fees or prepayment penalties.

Contact me today if you are interested in learning more about this type of financing solution. Check the side panel for contact info.

Where are the affordable homes?

2007-07-17T18:57:00.002-07:00

Affordable homes in the Inland Empire /Riverside County, finding one can be a daunting task! With home prices soaring over the last 5-6 years and only now beginning to level off (even decline in some areas) where does the first time home buyer start looking? Good question, and here are some great answers;

-Lake Elsinore
This small town, population of approx. 40,000 people, is one of the most affordable cities in the Inland Empire / Riverside County. Lake Elsinore has seen an increase in home values, but the city's values did not skyrocket like the surrounding communities of Temecula, Murrieta, and Corona. Since the climb was slower in home prices, the decline will also be slower. Lake Elsinore's position, right smack dab in the middle of progress on the I-15 corridor, make this an ideal buy for first time home buyers. With the added value of lake view properties at reasonable prices and easy access to the Lake itself, this city has appeal to young home buyers. One consideration any potential homeowner needs to make is future value. Consider the location of Lake Elsinore, approximately 75 minutes to San Diego and Los Angeles, and with easy access to CA Hwy-74 you can reach the city of Orange in about 50 minutes. Talk about location, location, location! Lake Elsinore is my personal specialty, and if you are looking for a home here, be sure and give me a call so I can personally introduce you to the two top agents in the City.

-Hemet
This sleepy city has grown leaps and bounds over the past 5-6 years. Hemet has most anything a first time home owner would need. Home improvement, discount mega-stores, etc... In addition to the local stores, Hemet has seen large new home growth. Homes are still affordable in the city and the streets are quite. Home to a large senior population, with many senior only mobile home parks, home prices vary, sometimes drastically, from street to street it seems. This can cause problems when negotiating financing on a home, but you have nothing to worry about because you have a great lender in your corner, Me! Just kidding, but you should know that whomever you work with is knowledgeable of the market and the surrounding area. Someone local, not in some other state, or country sometimes! Feel free to contact me and my time for many 100% financing options, even up to 95% financing on mobile/manufactured homes!

-Sun City
Another sleepy, but very affordable housing city. According to the 2000 census, Sun City had a population of approximately 17,000 people. This is a, primarily, senior community with a growing population of first time home buyers and those looking for affordable housing. The city has grown quite a bit over the last few years, but still has a way to go.

-Wrap-up
These are few of the affordable cities in the Inland Empire / Riverside County, For more information on affordable homes, interest rates, loans, credit, or home values in Lake Elsinore, Hemet, or Sun City please contact me, Adam Clarke, at (951) 318-1162. The Clarke Team specializes in mortgage loans for purchases and refinances in the Inland Empire / Riverside County including Lake Elsinore, Hemet, or Sun City. If you are looking for real estate related services including your home's value, listing your home for sale, purchasing a home, or anything else real estate related contact us for a referral to the best real estate agents in the industry. You can save money, time, and hassle by working with professional mortgage brokers and real estate agents.

This month we celebrate our independence. Wouldn’t this be the perfect time to cast off the bonds of mortgage debt?

2007-07-05T13:51:00.000-07:00

Here are a few of my favorite ways to lower your mortgage balance quickly and effectively!

Pay Off Sooner by Paying Sooner- Bi-weekly mortgage payments have become very popular as a way to pay off your mortgage faster. You would make a mortgage payment every two weeks instead of once per month. This is very simple since you can do it yourself and it takes very little effort. Your extra payment will apply directly to principal, thus paying your mortgage off quickly.

Decrease Your Mortgage Term- You could elect to refinance and change your 30-year mortgage to a 25, 20, or even 15-year mortgage. Bear in mind though, that your monthly payments will be considerably higher. Generally speaking, a shorter term will offer substantially better interest rates. Your payments go up, but more of your money goes to your principal balance.

Home Ownership Accelerator- This program is for those who like simplicity. You roll your entire mortgage into a Home Equity Line of Credit, or “HELoC”. You would deposit your paycheck into the account and pay your bills out of the HELoC, no need for a checking account! You would keep your daily balance low by depositing your check and the amount you would save in interest would be in the tens of thousands. In addition to that, the extra money you don’t spend is applied directly to the principal without you even realizing it. The downside though is that the loan does not have a fixed interest rate and is completely at the mercy of the market. For those looking for a more stable product, see below

“The Fastest Way to ZERO”- The Money Merge Account is an incredible vehicle that was designed to take your entire financial situation and calculate the fastest way to ZERO on your mortgage. This is a software program that accompanies your current loan in conjunction with a HELoC that can help you pay your mortgage off in as little as 8 years. This revolutionary program actually cancels interest! This is by far my favorite way to pay down your mortgage quickly and safely. It takes the best features from the Home Ownership Accelerator and adds the safety and stability of the loan you already have. The best part is that you don’t have to refinance to take advantage of it. There is also a referral program offered by the software manufacturer where you could make money by saving your friends and family thousands! Call for details.

For more information on how you can save thousands in interest, see www.ProLoanBroker.com or call Adam @ 951.318.1162

WARNING: Your Info is Being SOLD!

2007-05-27T12:56:00.001-07:00

Warning- Your Name is Being Sold - Take Action Now!

Here is some news that not only you, but your friends and family should all take note of! Your information is a valuable commodity. The “big three” credit companies have found a way to increase their bottom line at your expense! Read on to find out how you can protect yourself. Please spread the word, this could save someone from identity theft!

Having your credit checked is a necessary part of buying a home or refinancing. Very few consumers realize however, that the inquiries that Trans Union, Equifax, and Experian have on file have become saleable. Your Information is being sold to lenders and companies that re-sell the names and personal information!

That’s right, they are selling your name, address, credit score, phone number (even if it is unlisted), current debt, debt history, property info, age, gender, and even wealth code! They are selling your information, your privacy, and your life to the highest bidder! Not just once, but over and over again and making millions!

The cost is high for these types of “Leads” and the lenders that buy them often need to recapture a higher profit margin to pay for the expense. Often the introduction starts out as a lie with such openings as “HI Mr. Borrower, my name is Bob Lender and I work with Big Credit Company and I was asked to give you a call to verify that you where aware of the fact that your credit was run in attempt to acquire a mortgage. Well since you were interested in a mortgage, our affiliation with Big Credit Company gives us access to better rates than anyone else out there.” A complete LIE!

Protect Yourself and Your Privacy

The good news? There is a way to protect yourself! The consumer credit reporting industry has provided a way to “opt-out” of this malicious system. Call them at 888.567.8688 or go online to www.optoutprescreen.com and you can opt out for 5 years or for life if you opt out for life there is a form that needs to be signed. It takes up to 48 hours to take effect though. Not only will this protect your information while shopping for a mortgage, but also will stop the pre-approved junk mail that we get on a daily basis! The pre-approved junk mail is one of the leading causes of identity theft in the United States. Protect yourself and tell your friends and family as well.

You have the right to shop for the professional that will meet your needs, but this should be done how and when you want to, not without your consent. If you are shopping around, call or email me for a list of questions that will weed out the best lenders from the rest. Call or email me if you’d like a copy sent to you right away.

You Need a Plan

2007-05-04T16:07:00.000-07:00

^^^^^^^^^^^^THIS IS NOT A PLAN^^^^^^^^^^^^

Are you planning on retiring? If you have worked for more than a couple years, chances are you do plan on it. But the real question is have you planned for retirement? Wouldn't it be nice if you had a plan detailing how you could quit working and enjoy life? Real estate is the answer to what you have been working for your whole life. Companies lay employees off, stocks continue to be extremely volatile, and the savings acconts/CD's are paying a measly 5-7%. Do you want to know why real estate is a better investment vehicle than anything currently available on the market? One word, leverage. Read on.

Component 1) Credit
Without good credit it is very difficult to own property. This should be the very first thing an investor should consider. Good credit opens you up to the best of loans, the best of terms and, the now harder than ever to get, option ARM loans. So, what if you don't have good credit? That is where the Clarke team comes in. We are partnered with one of the largest, and most reputable credit repair companies in the nation, Lexington Law Firm. They are a law firm that specializes in credit repair. Check out their website for more information. The company has agreed to offer my clients the ability to utilize their services and extremely reasonable fees, no contracts, and best of all a money back guarantee. Just call me today for a brief overview of how the company works and my PIN number for the site.

Component 2) Loan
Would you cut a steak with a spatula? No, of course you wouldn't. In the real estate investing world you are only as good as your tools and the mortgage on the property is a very important tool. You need a loan that will meet your standards of security as well as have an attractive enough payment. The Clarke Team is well versed in investment loans and prides themselves on being knowledge based in their business. Each of our loan officers is experienced and continuing to learn their art everyday. This is how we make a living and we strive to be the absolute best at it. If you have a question about a loan, feel free to call us and we would be more than happy to work with you on a one on one basis to help you reach your real estate goals. Consider us that razor sharp $300.00 steak knife you bring out on special occasions.

Component 3) The Mark
The hunt begins for the absolute perfect investment property. "Oh, foreclosures, you always get great deals on foreclosures!". Number one biggest mistake new investors make. If you go to a foreclosure auction, when you bid, you are bidding against professional home buyers. They will out bid you, they have the money to out bid you, and if they don't out bid you then you paid to much. Simple as that. Your goal should be to get to the deals before they are foreclosures. Again, this is where the Clarke Team shines! We are partnered with the best real estate agents in the market. Our partners are well aware of everything on the market and masters of negotiation. The Clarke Team prides ourselves on the partners we choose. Give us a call if you are looking for a great deal in your area.

Component 4) The Plan
The plan is the key to a good investing strategy. You want to know when you are going to retire. What lifestyle you want to live once you are retired. For those of you not yet ready to retire, think about the passive income you wish to maintain. The rental market is poised to skyrocket if the current level of foreclosures maintains. The people losing their home are going to need a place to live! The foreclosure combined with the sub prime alignment they will be unable to buy a home for at least 1 year. Consider that when you are looking for rentals. Cash flow is what is important.

After all this, you should consider the fact that maybe you won't be able to retire on the company pension. We already know that social security won't be there when we are. If you still are not convinced, think about today's retired, struggling everyday. That is not the life I want, and you shouldn't either. That is why it is up to you and me to change our futures and invest in real estate. Build wealth through calculated, analyzed, and of course knowledgeable decisions. And have a team that you work well with, that knows their stuff, and knows exactly where you are going. At the beginning of this entry, I had said that leverage was the key to wealth in real estate. This ideal comes down to one simple example. If you had $350,000 and you put into a 10 year CD at 9% I would say that was a great idea. Over the past 40 years real estate has appreciated at 8.9% so the CD would be a wise investment. But wait, I have never seen a CD offering 9%. And, oh wait I don't have $350,000 to put in a CD. Do you have a friend that would loan you $350,000 for ten years so you can collect the $510,000 at the end of the ten years? I do, it's called the the bank, but they would prefer to lend it to you on something tangible like sticks and bricks. This is called leverage. I could introduce you to my friend the bank, just give me a call. 1-888-232-5512 Ext. 85.

Um, yes I'll take the good loan please.

2007-04-09T08:53:00.000-07:00

What makes a good loan?

Well, now that’s an interesting questions. If you took the easy answer then it would be the loan that is the best fit for your specific situation. More importantly though, and more common, what makes a bad loan? This is where many focus their attention.
The root of a bad loan is always the same. A loan consultant that either doesn't have YOUR best interests in mind, or lacks the knowledge to properly advise his/her clients. A loan that adjusts in 2 years is not a terrible loan, but if the loan officer gave you a 3 year pre-payment penalty to go with it, he just jumbo sized your troubles. Did you know that the average ARM loan adjusts only 1% every 6 months? Well that’s not so bad, oh by the way the initial adjustment is usually up to 5%!!!! So your 6.375% could go up to 11.375% the month it goes adjustable! So, on an average $350,000 loan your payment just went up 164% or almost $1,250.00! So you decide to re-finance. Well, the 3 year pre-payment penalty adjusted to the new rate is almost $16,000.00! Wait, it gets better, you decided to get an interest only loan to keep your payments low, so your balance hasn't decreased. You bought the home 2 years ago and the value has only increased at the average of 4% a year. So your home is worth $378,500 and you owe $350,000+$16,000 pre-pay penalty. Combine that with your average cost of a refinance and you are at almost 100% loan-to-value. Wait, wait, wait... it gets BETTER! With the recent mortgage industry scares and changes, you need a minimum of a 680 credit score to go up to 100% loan-to-value, and the rates are not very fun when you get up to that level of loan to value. So as opposed to the 6.375% rate that you are used to, the average rate for this style of loan is about 8.00%. So combined with your new loan amount your payment would be over $2,750.00 and the mortgage insurance would be $308.70. Your new payment would be over $3,000.00 a month! This is what makes a bad loan!
This is where a mortgage pro will shine or go out of business. You as a consumer need to establish a relationship with a mortgage pro that has your best interests in mind. Your mortgage pro needs to be competent in all things mortgage to find a loan that fits your specific situation. I invite you contact me today if you are facing this situation or a similar one. What is the solution to the above problem? That is a good question, but I already answered it. Get the best possible loan for your specific situation. I’ll talk again with you soon.

"Subprime" collapse, we wish...

2007-04-02T10:07:00.000-07:00

All the talk on the news pages seem to be regarding the immanent collapse of the sub prime lending industry. We wish. We wish that this shakedown was limited to just the sub prime industry, but now the Alt-A lenders are suffering from the same problems. The industry is only part of the cause of the collapse, it is also due, in part, to borrowers getting loans that they didn't qualify for in the first place. The other part is what's politely referred to as "Stupid Lending Practices". Where will the lending industry land? Who will be there for those people that need a mortgage, but their credit isn't good? Well, now more than ever you need to have a knowledgeable and aggressive mortgage broker in your corner.

The first part of the problem was lenders having very risky loans. Remember, to a lender, risk means the level of default risk. At one time, very rare now, there were loans for illegal immigrants, 500 credit score without any income verification, and believe me it gets worse from there. This is what the term "Stupid Lending Practices" is reffering too. When lenders were making loans to people with poor credit scores the underwriting guidelines were also very lax inviting fraud and defaults. There was very little quality control for loans. The industry's standards are, like the real estate industry, returning to normalcy, cleaning house, and NOT falling apart like the news would have you believe.

So where does this leave you, the borrower? Well, there are some things you need to watch out for. The first, and probably the most important is your current loan. Lenders are actually going back through their files and auditing them. If you did a stated income/stated asset loan previously, your lender may consider that a red flag for fraud. If your loan is investigated the lender may ask to see proof of income, assets, or other documentation. If you can't meet their demands it could result in calling the loan due. That means you have two weeks to pay off your mortgage or they seize your home. Most people do stated income/stated asset loans because they can't qualify for the lender's guidelines on a full documentation loan. This will put you in a tough spot if you have to refinance quickly. Your best bet is to sign up for a credit repair program, even if you have good credit. The better your score, the better your chance of getting a good loan even if you have to refinance quickly. The average score needed to get a stated income/stated asset loan is roughly a 680.

The second thing you need to watch for during this time are scam artists. It's going to be an all too common story, Mr. and Mrs. Jones get a letter in the mail that states their loan has been sold. Effectively immediately please make your payments to this company at this address. Well, Mr. and Mrs. Jones' loan has been sold before, no big surprise. They make a payment to the new company and think nothing of it. 15 days later they get a late notice from the original lender. They inquire with the lender as to why they sent them a late notice and say they already made the payment. Surprise surprise, their loan was not sold at all. A scam artist sent the letter, cashed the check and Mr. and Mrs. Jones just made the schemer's mortgage payment, not their own. If you receive something in the mail from a company claiming to be your new lender, eye it with suspicion. By law you have to be notified in writing by both the new and the old lender that your loan has been sold. Once that has happened you should call your lender and verify verbally that your loan has been sold and verify the company if possible.

Why do interest rates move up and down?

2007-03-26T09:40:00.000-07:00

This is a more complicated question than you might think. Many different factors can affect mortgage interest rates including inflation, probably the largest factor.

Inflation is the measure of the difference in the prices of two sets of goods at two different points in time. Basically compare the price of a loaf of bread today versus this same time a year ago. That is inflation at it's most basic level. Higher inflation is generally associated with a growing economy, when the economy is strong there is more demand for goods and services so the producers of the goods and services can demand a higher premium. Thus the price of the same goods "inflates". Therefore a good economy means higher costs because the consumer can afford to pay more. In a growing economy the demand for credit grows and the interest rates go up. This is based on the fundamental economic concept known simply as supply and demand. The greater the need, the higher the cost. Inflation, however is a necessary evil, without it our economy doesn't grow. Everyone wants to make more money, if your boss makes more then he can afford to pay you more. If you get paid more then you can afford to buy more. It is a delicate balance, no doubt about it.

To muddle the picture even more, there are several different ways to measure inflation! There are also two different camps of mainstream economists, Monetarists and Keynesian. The views of these two groups of people vary on the formula for setting the rate of inflation. I personally don't overly concern myself with the different ways inflation is measured, however I do pay very close attention to what data the inflation index uses. There are several different reports used to formulate inflation, here are a list of a few;

New Home Sales
Consumer Confidence
Durable Goods Orders
Crude Inventories
Gross Domestic Product
GDP Chain Deflator
Jobless Claims
Personal Income
Personal Spending
Personal Consumption Expenditures
Consumer Sentiment Index
Retail Sales
Producer Price Index
Consumer Price Index

That is not nearly all of them, but you get the idea. A well qualified mortgage broker should keep up on all of these reports. Some are monthly, weekly, and annually. Those of us who care to make a career in this industry usually follow these so closely that we can generally forecast short term rate changes. No one has the crystal ball, but due to available data and market forecasts your broker should be able to put the puzzle together. In regard to these reports, one thing you should always keep in mind is that good economic news is bad for interest rates, bad economic news is good for interest rates. Again, it all comes down to supply and demand. Good economic news means you are making more and can afford to pay more, bad economic news means you are making less and can't afford to pay as much.

Finally, keep in mind that there are many different factors in inflation. Many different market reactions to certain news and also the media can spin good or bad news whichever way the want. Your best option is to find a mortgage broker who is knowledgeable, has a great understanding of economics and monetary policy. Once you find that person, "Ahem", get to know each other on a consultant/consulted basis. You don't want a broker who you just call when you want to re-finance, or worse, just pick a broker you don't already know because he told you that he had the lowest rate. If you call your broker or your broker only calls you when it is time to refi then you are nothing more than a transaction to him. Know that I am always available for questions via email. Thanks for reading, I'll see you next week.
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