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!

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!

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!

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!

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!

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.

https://www.youtube.com/watch?v=hq5-2uwEnkg


Thank you!

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

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
 

Happy Festivus!!!

Happy Festivus Everyone!

Time for "feats of strength"

Current Events

There are quite a few things going on in the second week of December 2014.

-The US Budget Bill is making its way through congress even though there were hidden items included within the bill that entail repealing the ban on taxpayer bailouts of banks, prohibiting a "voted in" amendment in Washington DC, reducing the standards of school cafeteria food and increasing the amount of allowable campaign contributions.

-Sony Pictures becomes the latest victim of cyber hacking and who knows what is going to happen there. From my understanding, Sony Pictures will be liable for leaked information. I hope they can weather the storm because I like to watch movies.

-The price of oil has fallen like a lead balloon taking the stock market with it. What does this mean? Lower Interest Rates for mortgages!!! The interest rates dropped to about 3.625% today on the 30 year fixed. We are heading back into the 3's!

All three of these items play a big role to everyone in this country. Whether you voted in November for Republicans to make common sense changes and to not overturn the constituents desires, or were looking forward to Sony's next Christmas blockbuster, or have an interest in selling your home and know there will be more potential buyers with lower interest rates available - this is a week to remember.

Elections - Bring on the MUD!

For those of us who watch any small amount of local television, it is hard to ignore the political ads running amuck as we near the election. We have a very tight Senatorial campaign going on in Colorado between Udall and Gardner. The ads they are running on television are, despicable, for lack of a better term. Both candidates have resorted to trying to tear down the other candidate, in lieu of presenting their own personal positive attributes. Why have our political candidates decided to stoop so low and sacrifice their dignity and respect for one another to win their respective elections?

Some say it is due to the degradation of societal norms, specifically perpetrated by the media. They state examples of where bad news gets read, while good news is ignored. The candidate who slings the most (and dirtiest) mud will not only garner attention from the television commercials they run, but they will also receive attention through the public relations process.

Others say it is simply a matter of the candidates trying to inform the voters of the intentions of the other candidate. Stating that there is an actual "good intention" from the candidate who advertises the shortcomings of his opponent, in that he/she will be helping the voters to avoid potential pitfalls from electing the opponent.

My opinion on this matter is the candidates are desperate. They are desperate to get elected and they desperate to appease their supporters. It is this desperation that causes them to throw away their morals and respect for their opponent. Frankly, it is sad there are two sides - our governing system was never intended to be so bi-polar. But as a result of lobbyists, campaign supporters and the special interests of our country, two sides have emerged and they have no choice but to fight with one another and feed their desperation.

Anyway you slice it, there is a ridiculous amount of mudslinging and personal attacks being pushed upon us. It is pretty hard for us to abstain from the process or admonish the candidates since there are, really, the only two sides that have a chance of victory. The odds of a third party tie-breaker...pretty low, but it would be this person's dream to see changes to our current system that would: 1) naturally deter candidates from personal attacks 2) present more than two choices 3) bring common sense (hello Thomas Paine) back to our society.

 

As always www.FirstAmericanMortgage.net is where you can find us.

Thank you very much!

Selling Tip!

Implementing the iPhone Selling System

While business today is becoming increasingly complex, some things don't change. It's still all about the customer.
If you're looking for new ways to boost sales, why not take a lesson from the iPhone, which remains a hot product despite its many competitors?
The iPhone's success is based upon its simplicity. Phones using other operating systems have multiple designs and interfaces; buyers like the iPhone because it's simple. I purchased one at the end of August and I love it. It is very functional and applicable to my needs.
Keeping It Simple
Selling today involves simplifying the buying experience. The consumer doesn't want to spend hours discussing the pros and cons of several products, and won't.
Those sellers who can offer an uncomplicated buying process will see results in higher sales, even if the product can't deliver the best quality at the lowest price.
The iPhone, for example, enjoys rising sales despite the fact that many experts believe its competitors are more sophisticated and less expensive.
Meet the Customer's Needs
So learn the iPhone lesson and become known as a company that can help consumers find exactly what they want. Allow each customer to specify what he or she wants from the product. Listen and clarify. Then avoid the temptation to demonstrate your full range of products and talk yourself out of the sale. Instead, show the customer the one that is tailored to his or her unique needs.
The beauty of this is that each customer is unique, but the product needn't be. Soon you will find yourself selling the same product to different people to meet different needs.
Your business will serve a diverse customer base but have a reputation for delivering perfectly matched choices. 

As always, I am available to discuss sales or marketing at www.FirstAmericanMortgage.net

Thank you very much!

Protect Your Bonds - Interest Rates May Rise

Retirees often have the bulk of their portfolios in bonds, which tend to offer stable income. But you shouldn’t assume they’ll always perform well, thanks to the possibility of interest-rate increases.
As you may recall, the U.S. Federal Reserve Board (Fed) reacted to the 2008/2009 financial crisis by keeping interest rates near all-time lows to stimulate consumer spending (which is key to any economic recovery.) But interest rates can’t stay low forever, and the Fed has indicated that they’re poised to increase rates, perhaps as soon as 2015.
That may be a problem for bond investors. Generally, bond prices move in the opposite direction to interest rates. Higher interest rates drive bond prices down, and vice versa.
Why? Say, you buy a newly issued $10,000 bond when interest rates are at 8 percent, so your bond yields 8 percent, or $800, annually. But after your purchase, the prevailing interest rate increases to 9 percent.
Now a newly purchased $10,000 bond yields $900 annually. If you wanted to sell your bond, nobody would pay you $10,000 to get $800 interest when the going rate is $900. You’d most likely have to reduce your price.
While the threat isn’t immediate, it’s not too early to consider how to try to protect your bond portfolio from this possibility. For example, you might consider moving your bond investments to mutual funds that invest in floating-rate loans or Treasury Inflation Protected Securities (TIPS). Jim Butler, Waddell and Reed at 303-827-4020 can help you determine if any of these investments are appropriate for you.

As always, I am available at www.FirstAmericanMortgage.net for any questions or discussion.

Thank you!

GOOOOOOOOOOOALS!!!

Does the World Cup have you crazy right now? Don't worry - I'm there too. Yes it is hard to keep your nose to the grindstone with distractions. That's why setting "goals" is the only way to make sure to stay on track and get things accomplished. Not goals like the Netherlands put up against Spain, but goals for the measurement of productivity and success.

In the mortgage business, my goals are often dictated for me. Deadlines, closing dates, mutual meetings and events always have me being where I need to be without much thought of actually setting goals. But, it is the extras that count. Goals to take time to network, to follow up with past customers, and to spend time building the business. These are the goals that need attention.
I have come up with some solid system to reinforce these goals and to make sure they get done (or at least I am shooting for them). This system revolves around scheduling and time management. It sounds simple, but it unravels fast if I am not careful.

Time management to me is discipline. If I have something pop up on my calendar, I stick to it and get it done before moving on. Yes, I have hit snooze many times. But the less I hit snooze, the more productive I am. When I am disciplined with my time, I get more done.

Scheduling is simply using my contact management and calendar software effectively. I am always diligent about putting appointments, meetings, calls or anything I need to remember in my calendar. I have one on my phone and my computer. The contact management software integrates with the calendar, so that runs itself - and turns back into time management.

The reason I bring this up is because of my business coach - Ellen Fox. Ellen and I have been working together for over two years and it is great to have such an excellent accountability coach. She was talking about goals today (and of course I started daydreaming about the World Cup) and it made me think of the goals that I work with in my professional life. Ellen's website is http://www.bloomwithellen.com/ and she is great.

As always, I am available for any mortgage questions (or to gab about the World Cup) at www.FirstAmericanMortgage.net .

Thank you and GO USA!!!!!!!

Net Neutrality

Tom Wheeler, the Federal Communications Commission Chairman, was previously a lobbyist for the cable and wireless industries. He was inducted to the wireless and cable television hall of fame for his lobbying efforts (in other words, the guy made Comcast, DirectTV, Sprint, Verizon and any other oligopoly controlling our television programing and cell phone service rich as hell - and then was awarded for it).

So what was Obama thinking when he appointed this guy to Chair the FCC?

Tom Wheeler raised over $700,000 in campaign contributions for Obama. Oh, that's why!


About a week ago, Wheeler's FCC proposed legislation is suggesting to allow internet service providers to charge content suppliers. For example, Comcast can now legally charge Netflix to use it's system to provide programs to end users. Crushing NET NEUTRALITY.

This cuts out competition in both sectors (internet service providers and content providers) by increasing the entry barrier in the industry. REPREHENSIBLE!!!!

Tom Wheeler running the FCC = The Wolf Running the Hen House. Tom Wheeler should be forced to spend eternity on hold waiting to talk to someone at Comcast (like we often feel) and Obama should get a good dose of it as well for not doing better in appointing an FCC Chairman.

What do you think? Let me know at www.FirstAmericanMortgage.net