Tuesday, December 1, 2015

Has Anyone Seen My Inventory? GET CREATIVE!!!

If you have been shopping for a home on the front range over the past month, you have been subject to one of the most interesting real estate markets I have ever seen in my 14 years experience. Single family homes below the $700,000 price point are flying off the market and normally within a few days of listing. At my last observation, there are five multi-family properties on the market in the entire city with an average price per square foot of $595. Yes, it is certainly interesting times in the Boulder real estate market and there are always deals to be had. It is time to think outside the box. Here are a couple of ideas on how to source your own deal:
1. If you are a renter, ask your landlord about a "lease to own" contract. It may help you to secure a purchase price and use a good portion of your rent payments as the down payment portion of your mortgage.
2. Look for dilapidated properties. There are many properties within the city that are in need of serious attention and updating. Try contacting the owners of the property. They may be looking for the perfect excuse (YOU) to get rid of their property.

One thing that we know for certain is that our market will change and with that change will come opportunity. Keep an eye out and listen for the knock!!!

As always, we would love to talk story about the local market and get your opinion at www.FirstAmericanMortgage.net

Thank you!

Tuesday, November 17, 2015

TRID - Know Before You Owe

The new TRID legislature that went effective 10/3/15 has been a big success at First American Mortgage, PLLC. The paperwork or disclosures that are provided in the lending transaction timeline have been drastically changed, and we believe for the better. The numbers are clearer and easier to discern for the average home buyer. The timing of the documents is well suited for the purchase timeline. There is a hang up that we found in seller credits and the complexity of backing out the numbers on the Closing Disclosure, but it is achievable. That is something that will probably be changed as we move forward with these documents as the CFPB works out the bugs. As always, we are available to discuss these mortgage industry changes as well as any other real estate questions you may have at www.FirstAmericanMortgage.net
Thank you!

Monday, June 22, 2015

Fly Fishing Boulder Creek

I enjoy the hobby/sport of fishing immensely - as you can see in this blog. It is an activity that does have an element of danger to it. Whether that be a bear sneaking up behind you in Yellowstone National Park or walking on a rock ledge 30 feet over roaring rapids trying to get to the perfect spot on Upper South Boulder Creek, there are times when human fragility is grossly exposed. I want to give a humble wish of peace and good will to the family of Jason McKain. Jason - you will be remembered and I hope your accident inspires others, as you have me, to fish safely. Rest in peace!

Tuesday, May 5, 2015

Cinco De Mayo!

Happy Cinco De Mayo everyone!

What is happening in your neck of the woods today? How will you be celebrating Cinco De Mayo?

I will be going to the oral surgeon today to have an implant placed - SWEET!!! That may call for a margarita or two for pain management as the day goes by.

Tell us your stories www.FirstAmericanMortgage.net

Thanks and happy Cinco De Mayo!

Thursday, April 9, 2015

Are Mortgage Rates Going to Increase?

In this world nothing can be said to be certain, except death and taxes - Benjamin Franklin. Well Mr. Franklin, rising interest rates are cutting it awfully close. The Federal Reserve stopped the purchasing of mortgage backed securities in October of last year, but keeping the Fed Funds rate (the interest rate banks pay to borrow money) near zero has been a stimulus of its own. Keeping the Fed Funds rate low has insured that mortgage rates stay low as well. Many critics cite the fixed income purchasing program along with keeping the Fed Funds rate near zero would lead to dangerous inflation and/or asset bubbles.

There are two takes on that: 1. Have we already experienced inflation in local commodities (rent, food, insurance, property tax, labor) and the media/government is ignoring it or concealing it by continually measuring inflation based on foreign goods? Sure it is great that Chinese made dress shirts now cost $20, but my homeowner's insurance is up 20% from five years ago - and don't even get me started on what the plumber bid to repair the leak! We are continually told that we are NOT experiencing inflation, yet things cost more.
2. The wages of the working population need to increase to facilitate inflation. After all, inflation is the increase in the price level of goods and services in an economy over time. There must be excess currency in the economy to facilitate the price level increases. Wages have not increased enough for the middle and lower class. Wages have increased for the upper class, but this is not enough to actualize inflation.

In April 2015, we are seeing big business increasing wages across the board. This has been the one "finger in the dam" the Fed has been unable to plug over the last five years (or they were in cahoots with these big businesses to hold off on wage increases). Now that wages are starting to increase, the economy will speed up, inflation will be "recognized" and interest rates will rise.

Frankly, inflation has been here and gone and there is not an asset bubble in housing. We are now paying at least 20% more for domestic goods and services that we were five years ago. The media/government has had foreign imports and a strong dollar to keep "virtual inflation" low or deflationary. Housing prices are up, but it is a matter of supply and demand. Only preferred markets are seeing the price increases.  Now the Fed must re-set its "recession" tool and return the Fed Funds rate to sustainable levels. Where would we be if there was another near financial collapse and the Fed had no tools to utilize? We sure know they can stop inflation dead in its tracks at this point with a solid rate hike. That is how the rate hike will play out and be publicized.

As always, there are bargains to be had in any market and real estate is always a solid investment. We are available to work shop and discuss these ideas at www.FirstAmericanMortgage.net

Thank you!

Friday, March 13, 2015

Trouble Finding Homes For Sale?

For the past couple months, Boulder County has been experiencing a shortage of available homes for sale. The market is seeing homes receiving multiple offers above listing price within the first few days of being listed. We believe there are a couple of "tricks" to be shared for these times when the sellers have the upper hand in the market place:

1. Look for multifamily property. Most people in the market place are looking for your cookie cutter, lot and block single family residence. What might allow you to get into the market and find an opportunity is to look at duplexes, triplexes and fourplexes. The loan amount limits for these properties is higher, you can use proposed rental income from the other units to help you qualify and you can use as little as 3.5% down payment.

2. Look at last year's and two years ago's expired listings. It is quite possible that someone over the last two years tried to sell a piece of real estate and they did not get what they wanted. So they took it off the market and kept it as their primary residence or a rental. These owners may be still thinking of selling if the right offer came along. Putting in a full price offer on their expired listing my be just what that property owner is looking for, and it will be your opportunity to "steal" a listing from the rest of the pool of buyers out there currently looking for homes to buy.

This is just a couple of ideas off the top of my head that can put a buyer into a position to beat the competition and accumulate wealth. That is what we are about at www.FirstAmericanMortgage.net , helping our clients beat their competition and accumulate wealth.


Thank you!

Wednesday, January 28, 2015

Net Neutrality - Voice Your Opinion!

FCC will propose Net Neutrality rules next month. Spread the word!

Student Net Alliance
Jan 28, 2015 — FCC Chairman Tom Wheeler is set to announce his proposed rule on Net Neutrality on February 5. That means that we have one week to make it clear to the FCC that we will not stand for anything less than an open internet. You’ve already signed the petition, will you help us take it to the next level? Share the petition with your friends:

Tell your friends on Twitter: http://bit.ly/1LcNULx
Tell your Facebook community: http://buff.ly/1zkg1VU

Net neutrality is the basis for what has made the Internet a place where what you know is more valuable than whom you know. Don’t let giant corporations change that.

Student Net Alliance

Let us know what you think at: www.FirstAmericanMortgage.net

Thursday, January 22, 2015

FUSE at the Riverside

I have been spending some quality office time at FUSE over the past two weeks and it has been exceptional. It is a great place to work and network. The food is excellent and because I am a FUSE member, I receive discounts and off the menu specials. If you have not checked out FUSE at the Riverside, get off your ass and do so!  http://boulderfuse.com/     www.FirstAmericanMortgage.net