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Monday, December 29, 2008
Sunday, December 28, 2008
Saturday, December 27, 2008
Friday, December 19, 2008
Jukebox V
The further along I get in the jukebox...the more I realize that I don't listen to a lot of new music. Most of my music is reflective of certain periods of my life. Kenny Chesney and Sugarland are going to be the music that reminds me of this period in my life.
Anyway...here is my latest installment of the iPhone.
1. These Arms of Mine - Otis Redding
I am not the only one who likes this song. Patrick Swayze is also a fan, or so it seems. This song is playing during two of his loves scenes Dirty Dancing (w/ Jennifer Grey) and Road House (w/ Kelly Lynch) .
2. Fire & Rain - James Taylor
I love this song. I am a complete dork!
3. If I Fall in Love - Shai
4. End of the Road - Boyz II Men
These two get bunched together because they are interlocked for me. When I was in the 10th grade my buddy Daniel and I walked from school to the Wherehouse to pick up a couple of CDs. These were the very first CDs that I ever owned. My first 5 CDs in order: 1.) ...If I Ever Fall In Love, 2.) Boomerang Soundtrack, 3.) Ooooooohhh...On The TLC Tip TLC, 4.) What's the 411? Mary J. Blige, and 5.) Doggystyle Snoop Dogg. End of the Road came on a soundtrack to the Eddie Murphy movie Boomerang. At one point they battled for the top spot on MTVs top 20 countdown (back when MTV actually played music videos).
5. Lately - Jodeci
I know that Stevie Wonder originally released this song, but the Jodeci version resonates with me. I am not totally sure why - except I am a sucker for ballads.
6. Keep You - Sugarland
Didn't I already mention Jennifer Nettles voice??? So soothing to me - Mac and I love listening to the Sugarland CD over and over and over again. It is playing whenever we are in the car.
7. Unchained Melody - The Righteous Brothers
C'mon who doesn't remember the scene from Ghost??? Here I go again with Patrick Swayze - Jennifer Grey to Kelly Lynch to Demi Moore - they just got hotter for him.
8. For What It's Worth - Buffalo Springfield
It feels like this song should be in the movie Forrest Gump - I actually don't know if it is. Either way, I love oldies.
I realized that while I was writing this down, a lot of the songs remind me of movies. Therefore, I am going to post very soon my favorite movies.
Anyway...here is my latest installment of the iPhone.
1. These Arms of Mine - Otis Redding
I am not the only one who likes this song. Patrick Swayze is also a fan, or so it seems. This song is playing during two of his loves scenes Dirty Dancing (w/ Jennifer Grey) and Road House (w/ Kelly Lynch) .
2. Fire & Rain - James Taylor
I love this song. I am a complete dork!
3. If I Fall in Love - Shai
4. End of the Road - Boyz II Men
These two get bunched together because they are interlocked for me. When I was in the 10th grade my buddy Daniel and I walked from school to the Wherehouse to pick up a couple of CDs. These were the very first CDs that I ever owned. My first 5 CDs in order: 1.) ...If I Ever Fall In Love, 2.) Boomerang Soundtrack, 3.) Ooooooohhh...On The TLC Tip TLC, 4.) What's the 411? Mary J. Blige, and 5.) Doggystyle Snoop Dogg. End of the Road came on a soundtrack to the Eddie Murphy movie Boomerang. At one point they battled for the top spot on MTVs top 20 countdown (back when MTV actually played music videos).
5. Lately - Jodeci
I know that Stevie Wonder originally released this song, but the Jodeci version resonates with me. I am not totally sure why - except I am a sucker for ballads.
6. Keep You - Sugarland
Didn't I already mention Jennifer Nettles voice??? So soothing to me - Mac and I love listening to the Sugarland CD over and over and over again. It is playing whenever we are in the car.
7. Unchained Melody - The Righteous Brothers
C'mon who doesn't remember the scene from Ghost??? Here I go again with Patrick Swayze - Jennifer Grey to Kelly Lynch to Demi Moore - they just got hotter for him.
8. For What It's Worth - Buffalo Springfield
It feels like this song should be in the movie Forrest Gump - I actually don't know if it is. Either way, I love oldies.
I realized that while I was writing this down, a lot of the songs remind me of movies. Therefore, I am going to post very soon my favorite movies.
Thursday, December 18, 2008
Things they don't teach you in school...
Bill Gates gave these 11 rules at a High School a few years back. I got this forwarded to me by a friend years ago - I feel compelled to share it.
Rule 1
Life is not fair - get used to it.
Rule 2
The world won't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.
Rule 3
You will NOT make 40 thousand dollars a year right out of high school. You won't be a vice president with car phone, until you earn both.
Rule 4
If you think your teacher is tough, wait till you get a boss. He doesn't have tenure.
Rule 5
Flipping burgers is not beneath your dignity. Your grandparents had a different word for burger flipping they called it Opportunity.
Rule 6
If you mess up,it's not your parents' fault, so don't whine about your mistakes, learn from them.
Rule 7
Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you are. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.
Rule 8
Your school may have done away with winners and losers, but life has not. In some schools they have abolished failing grades and they'll give you as many times as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.
Rule 9
Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you find yourself. Do that on your own time.
Rule 10
Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.
Rule 11
Be nice to nerds. Chances are you'll end up working for one.
The rules are taken from the book Dumbing Down our Kids by educator Charles Sykes. Maybe one day when I am feeling crazy I will write a post about my opinions of public education. Ah well, this is definitely a post for another day!
Rule 1
Life is not fair - get used to it.
Rule 2
The world won't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.
Rule 3
You will NOT make 40 thousand dollars a year right out of high school. You won't be a vice president with car phone, until you earn both.
Rule 4
If you think your teacher is tough, wait till you get a boss. He doesn't have tenure.
Rule 5
Flipping burgers is not beneath your dignity. Your grandparents had a different word for burger flipping they called it Opportunity.
Rule 6
If you mess up,it's not your parents' fault, so don't whine about your mistakes, learn from them.
Rule 7
Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you are. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.
Rule 8
Your school may have done away with winners and losers, but life has not. In some schools they have abolished failing grades and they'll give you as many times as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.
Rule 9
Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you find yourself. Do that on your own time.
Rule 10
Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.
Rule 11
Be nice to nerds. Chances are you'll end up working for one.
The rules are taken from the book Dumbing Down our Kids by educator Charles Sykes. Maybe one day when I am feeling crazy I will write a post about my opinions of public education. Ah well, this is definitely a post for another day!
Wednesday, December 17, 2008
Wednesday, December 10, 2008
My Jukebox IV...
I really love posting about music. It is a huge part of who I am. I hope that you enjoy it...
1. Before I Let You Go - BLACKstreet
I don't know what it is about this song - I just love it!
2. Demons - Kenny Chesney
First, I love his voice. Second, he gives an amazing concert. This year is the first year in the last 4 that we have not been to one of his concerts. 2009 will definitely be different. I would love to see Kenny in Vegas - he always plays Mandalay Bay - I hear it is an amazing venue for a concert. Third, his lyrics definitely speak to me. Read the lyrics - listen to the song. Amazing!!!!!
3. I Saw Her Standing There - The Beatles
When I hear this song - I think of Ferris Bueller's Day Off. No idea why!
4. In Christ Alone - Travis Cottrell
And as he stands in victory - sin's curse has lost it's grip on me
Amazing...listen for yourself!!!!
5. Just As I Am - Nichole Nordeman
My Pastor has been talking a lot about love lately. And these lyrics speak to me, what kind of love in injury's place, would leave instead the stain of grace? So I come in sorrow and I come in shame, I come to the cross with my pain.
6. The Day the Earth Stood Still - Brian McKnight
Years ago Hanssie and I went to a Brian McKnight concert at Universal Studios. We sat in the last row and got to hear first hand Brian's compelling vocals. During the concert he stopped singing his songs and gave his testimony and sang a few hymns. His concert truly endeared me to him - as I love each and every one of his albums. This song is great...
7. Please Don't Pass Me By - Fred Hammond
Tamara Lands was the secretary of the Christian Studies department at Cal Baptist when I went to school there. I did not live on campus, so I had nowhere to go during the breaks in my schedule, so most of the time I ended up in her office talking. She gave me a CD of a gospel singer (Fred Hammond) and I have been hooked ever since. This is my favorite Fred Hammond song...listen!
8. Imagine - John Lennon
I just like this song - although it probably doesn't fit in this list, it is what I am listening to.
1. Before I Let You Go - BLACKstreet
I don't know what it is about this song - I just love it!
2. Demons - Kenny Chesney
First, I love his voice. Second, he gives an amazing concert. This year is the first year in the last 4 that we have not been to one of his concerts. 2009 will definitely be different. I would love to see Kenny in Vegas - he always plays Mandalay Bay - I hear it is an amazing venue for a concert. Third, his lyrics definitely speak to me. Read the lyrics - listen to the song. Amazing!!!!!
3. I Saw Her Standing There - The Beatles
When I hear this song - I think of Ferris Bueller's Day Off. No idea why!
4. In Christ Alone - Travis Cottrell
And as he stands in victory - sin's curse has lost it's grip on me
Amazing...listen for yourself!!!!
5. Just As I Am - Nichole Nordeman
My Pastor has been talking a lot about love lately. And these lyrics speak to me, what kind of love in injury's place, would leave instead the stain of grace? So I come in sorrow and I come in shame, I come to the cross with my pain.
6. The Day the Earth Stood Still - Brian McKnight
Years ago Hanssie and I went to a Brian McKnight concert at Universal Studios. We sat in the last row and got to hear first hand Brian's compelling vocals. During the concert he stopped singing his songs and gave his testimony and sang a few hymns. His concert truly endeared me to him - as I love each and every one of his albums. This song is great...
7. Please Don't Pass Me By - Fred Hammond
Tamara Lands was the secretary of the Christian Studies department at Cal Baptist when I went to school there. I did not live on campus, so I had nowhere to go during the breaks in my schedule, so most of the time I ended up in her office talking. She gave me a CD of a gospel singer (Fred Hammond) and I have been hooked ever since. This is my favorite Fred Hammond song...listen!
8. Imagine - John Lennon
I just like this song - although it probably doesn't fit in this list, it is what I am listening to.
Tuesday, December 9, 2008
Loan Updates for 2009
The Big Three executives spent two consecutive days on Capitol Hill this past week pleading for as much as $34 billion in loans to help their industry survive.
The focus of the economy has shifted in the past few weeks. The list used to be topped by failing banks (but those are a dime a dozen) and the growing unemployment rates. Now, the the failing Big Three seems to be the most important thing to our politicians.
Side Note - when did we stop allowing companies to fail? I am so anti big government it is ridiculous. I am against any form of bailout. We have allowed these companies to make SO much money, now after a series of bad decisions (don't get me started on these) we are going to bail them out.
Having said that - mortgages really need to be on our radar too. There are some changes coming. Here is a cliff notes version of some of these changes:
FHA
* 3.5% minimum down
* 620 minimum FICO
* 580 FICO with compensating factors (if the other 2 are strong they may over look the lower FICO)
- FICO
- Income
- Down
* 6% maximum allowable concessions
* $355k maximum loan - Inland Empire
Conventional
These loans vary so much from one mortgage company to another. However, there are a couple of interesting items:
* $417k maximum loan - Inland Empire
* 10% minimum down
* 30 yr fixed 5.375% (currently) - possibly as low as 4.5% - more on this later!
* 5/1 ARM 5.875% I/O (currently)
The focus of the economy has shifted in the past few weeks. The list used to be topped by failing banks (but those are a dime a dozen) and the growing unemployment rates. Now, the the failing Big Three seems to be the most important thing to our politicians.
Side Note - when did we stop allowing companies to fail? I am so anti big government it is ridiculous. I am against any form of bailout. We have allowed these companies to make SO much money, now after a series of bad decisions (don't get me started on these) we are going to bail them out.
Having said that - mortgages really need to be on our radar too. There are some changes coming. Here is a cliff notes version of some of these changes:
FHA
* 3.5% minimum down
* 620 minimum FICO
* 580 FICO with compensating factors (if the other 2 are strong they may over look the lower FICO)
- FICO
- Income
- Down
* 6% maximum allowable concessions
* $355k maximum loan - Inland Empire
Conventional
These loans vary so much from one mortgage company to another. However, there are a couple of interesting items:
* $417k maximum loan - Inland Empire
* 10% minimum down
* 30 yr fixed 5.375% (currently) - possibly as low as 4.5% - more on this later!
* 5/1 ARM 5.875% I/O (currently)
Monday, December 8, 2008
Family Photos 2008
A few weeks ago my family went to Redlands (the town I grew up in) to take our family pictures. I thought I would take a moment and share them with all of you.
Thank you Cean for the beautiful pictures.
Thank you Cean for the beautiful pictures.
Sunday, December 7, 2008
USC 28, UCLA 7
I was going to write a huge post about USC v. UCLA - but at the end of the day, all that matter is that SC won 28-7. Outside of a horrible game in 2006, Pete Carroll has dominated UCLA. Pete avenged the 2001 loss to Rick Neuheisel's Washington Huskies.
Bring on the Nittany Lions.
Fight On!!!!
Wednesday, December 3, 2008
Tuesday, December 2, 2008
Are you running today?
A few weeks ago I was at Berrysweet getting frozen yogurt with my family. We were waiting in line and I lost my balance and fell into this guy (probably because I was acting like a spaz). Anyway, he helped me regain my balance and we went on about our business. This was on a Sunday night...
Wednesday night my family and I are at church registering for Awana for our daughter and I bump into the same guy. Again we go about our business without any introduction.
On Friday, we are at lunch for my wife's birthday and wouldn't you know it - the same guy! Three times in one week is too much, so I walk up to him and introduce myself. He is a mortgage officer and we exchange cards.
A couple of weeks later he calls me and tells me that he wants me to look into Mona Vie - I guess he is a distributor of the fruity beverage. A long story short, he and I met this morning for a cup of tea at a local coffee shop so he can share the story of Mona Vie.
It really was a pleasant time. Stephen is a great guy and we talked for about an hour. He gave me a bottle of Mona Vie and shared the following proverb - and I can't stop thinking about it.
Every morning in Africa, a gazelle wakes up and knows it must run faster than the fastest lion or it will be killed.
Every morning in Africa, a lion wakes up and knows it must outrun the slowest gazelle or it will starve.
It doesn't matter whether you are a lion or a gazelle; when the sun comes up, you better start running.
- African Proverb
As someone who is in business for himself - and someone whose wife is about to be in business for herself (visit her site at Hanssie Trainor Photography)...this is a valuable (albeit cliche) lesson. Successful people are not standing around waiting. They are moving. They are making things happen.
My grandfather spent the last 30 years of his life as a Chaplain. I remember going to work with him and barely being able to keep up. He was in his sixties and I was a teenager. He was a great example to me.
Just a thought - good luck today!
Wednesday night my family and I are at church registering for Awana for our daughter and I bump into the same guy. Again we go about our business without any introduction.
On Friday, we are at lunch for my wife's birthday and wouldn't you know it - the same guy! Three times in one week is too much, so I walk up to him and introduce myself. He is a mortgage officer and we exchange cards.
A couple of weeks later he calls me and tells me that he wants me to look into Mona Vie - I guess he is a distributor of the fruity beverage. A long story short, he and I met this morning for a cup of tea at a local coffee shop so he can share the story of Mona Vie.
It really was a pleasant time. Stephen is a great guy and we talked for about an hour. He gave me a bottle of Mona Vie and shared the following proverb - and I can't stop thinking about it.
Every morning in Africa, a gazelle wakes up and knows it must run faster than the fastest lion or it will be killed.
Every morning in Africa, a lion wakes up and knows it must outrun the slowest gazelle or it will starve.
It doesn't matter whether you are a lion or a gazelle; when the sun comes up, you better start running.
- African Proverb
As someone who is in business for himself - and someone whose wife is about to be in business for herself (visit her site at Hanssie Trainor Photography)...this is a valuable (albeit cliche) lesson. Successful people are not standing around waiting. They are moving. They are making things happen.
My grandfather spent the last 30 years of his life as a Chaplain. I remember going to work with him and barely being able to keep up. He was in his sixties and I was a teenager. He was a great example to me.
Just a thought - good luck today!
Sunday, November 30, 2008
The Big Bang Theory
Speaking of quotes - this exchange is amazing:
Leonard: Do you want to join us for Thai food and a Superman movie marathon?
Penny: Wow, a marathon, how many Superman movies are there?
Sheldon: You're kidding, right?
Penny: You know, I do like the one where Lois Lane falls from the helicopter and Superman swooshes down and catches her. Which one was that?
Leonard Sheldon Wolowitz: One [Raj holds up one finger]
Sheldon: You know that scene was rife with scientific inaccuracies?
Penny: Yes, I know men can't fly...
Sheldon: No, no, let's assume that they can...Lois Lane is falling, accelerating at an initial rate of 32 feet per second per second...Superman swoops down to save her by reaching out two arms of steel...Miss Lane, who is know traveling at approximately 120 miles an hour, hits them and is immediately sliced into three equal pieces.
Leonard: Unless Superman matches her speed and decelerates.
Sheldon: In what space, sir, in what space? She's two feet above the ground. Frankly, if he really loved her, he'd let her hit the pavement. It'd be a more merciful death.
Leonard: Well, excuse me! Your entire argument is predicated on the assumption that Superman's flight is a feat of strength.
Sheldon: Are you listening to yourself? It is well established that Superman's flight is a feat of strength. It is an extension of his ability to leap tall buildings, an ability he derives from Earth's yellow sun!
Wolowitz: And you don't have a problem with that? How does he fly at night?
Sheldon: Uh, a combination of the Moon's solar reflection, and the energy storage capacity of Kryptonian skin cells.
Leonard: I have 26 hundred comic books in there; I challenge you to find one reference to "Kryptonian skin cells".
Sheldon: Challenge accepted.
Science of Superman - watch the clip here.
Leonard: Do you realize that if Penny wakes up there is no reasonable explanation as to why we're here.
Sheldon: I just gave you a reasonable explanation.
Leonard: No you just gave me an explanation; it's reasonableness will be determined by a jury of your peers.
Sheldon: Don't be ridiculous...I have no peers.
A friend of mine has some close associations with the producers and the creative team behind the show. She got me hooked on the show - and now I can't stop. It airs on CBS on Monday's at 8pm. Please watch!!!
Leonard: Do you want to join us for Thai food and a Superman movie marathon?
Penny: Wow, a marathon, how many Superman movies are there?
Sheldon: You're kidding, right?
Penny: You know, I do like the one where Lois Lane falls from the helicopter and Superman swooshes down and catches her. Which one was that?
Leonard Sheldon Wolowitz: One [Raj holds up one finger]
Sheldon: You know that scene was rife with scientific inaccuracies?
Penny: Yes, I know men can't fly...
Sheldon: No, no, let's assume that they can...Lois Lane is falling, accelerating at an initial rate of 32 feet per second per second...Superman swoops down to save her by reaching out two arms of steel...Miss Lane, who is know traveling at approximately 120 miles an hour, hits them and is immediately sliced into three equal pieces.
Leonard: Unless Superman matches her speed and decelerates.
Sheldon: In what space, sir, in what space? She's two feet above the ground. Frankly, if he really loved her, he'd let her hit the pavement. It'd be a more merciful death.
Leonard: Well, excuse me! Your entire argument is predicated on the assumption that Superman's flight is a feat of strength.
Sheldon: Are you listening to yourself? It is well established that Superman's flight is a feat of strength. It is an extension of his ability to leap tall buildings, an ability he derives from Earth's yellow sun!
Wolowitz: And you don't have a problem with that? How does he fly at night?
Sheldon: Uh, a combination of the Moon's solar reflection, and the energy storage capacity of Kryptonian skin cells.
Leonard: I have 26 hundred comic books in there; I challenge you to find one reference to "Kryptonian skin cells".
Sheldon: Challenge accepted.
Science of Superman - watch the clip here.
Leonard: Do you realize that if Penny wakes up there is no reasonable explanation as to why we're here.
Sheldon: I just gave you a reasonable explanation.
Leonard: No you just gave me an explanation; it's reasonableness will be determined by a jury of your peers.
Sheldon: Don't be ridiculous...I have no peers.
A friend of mine has some close associations with the producers and the creative team behind the show. She got me hooked on the show - and now I can't stop. It airs on CBS on Monday's at 8pm. Please watch!!!
Saturday, November 29, 2008
My Jukebox III...
I have spent a lot of time listening to my iPhone the last few days. I spent a large portion of the day on Tuesday and Friday traveling. Therefore, many different themes emerged as I was thinking about the songs that I like to listen to. As well as a lot of thoughts in general...
1. Why are there no Brian McKnight songs in my iTunes yet?
2. When did I start listening to so much Country music?
3. What does Taylor Swift say about...forget it...
Themes...
1. All sappy songs I love
2. All 80s songs that I love
3. All Boyz II Men songs that I love
4. All Sugarland songs...
5. All Kenny Chesney (3 time Entertainer of the Year - CMAs)...
Anyway - I digress - those things will have to happen on another day or post. My new 8 songs:
1. American Pie - Don McLean
I remember being a kid - driving to my grandparents house in the summer - my dad listening to the radio (KRTH 101.1) and this song coming over the speakers. I guess I like reminiscing!
2. Smack That - Akon feat. Eminem
Sign you have seen a movie too many times. When you try to offer an explanation for why you like a song by Akon with Eminem and the only thing that pops into your brain is the following exchange from Superbad.
Mindy: Kinda looked like Eminem.
Officer Michaels: Ah, an M&M...
Officer Slater: M&M, so he was like circular...
Mindy: Marshall Mathers. Eminem, the rapper, Eminem.
Officer Michaels: He looked like this? I'm an amateur.
Officer Slater: 'Cause that kinda looks like an M&M.
Officer Michaels: Longer face? Bigger nose? Would you say his mouth was wider? Open? A gap?
3. Just A Dream - Carrie Underwood
I love the emotion that she sings this song with. Huge Carrie fan - she will be mentioned her a lot.
4. Come On, Let's Go - Ritchie Valens
Ok, so this guy had 6 hits including a couple of # 1s in his career. A career that began in May of 1958 and ended with his death in February 1959 - 8 months! Oh, did I mention that he was 16/17 years old...amazing!!!!
5. Lying Is The Most Fun A Girl Can Have Without Taking Her Clothes Off - Panic! At The Disco
How long is this title? Add it to the group name and it is almost unbearable - but I am a big fan! I guess I have a little Seth Cohen in me too. These guys are way emo!!!
6. Regulators - Warren G feat. Nate Dogg
When this song came out, my buddy Daniel and I would record songs off the radio. When this song came out, my buddy Daniel and I left school after 2nd period to get the CD. Regulators, mount up - I love this song!
7. When I'm Gone - 3 Doors Down
No story...just a kick butt song!
8. God Only Knows - The Beach Boys
My dad owned a drywall company when I was a kid - Alpine Drywall. My memories of that company are this - we would work on one job, and throughout the day we would drive to the other jobs to check on them. We would drive his 1989 Toyota pickup truck. He would buy me a 16 oz glass bottle Dr. Pepper (the only perfect way to enjoy a Dr. Pepper). We would chew sunflower seeds and listen to one of the these: Alleluia (a compilation of testimonies and hymns), sports talk radio (The Loose Cannons or Lee "Hacksaw" Hamilton), an old Alabama cassette (more on this later) or an old Beach Boys cassette. God Only Knows why I think about these things...
1. Why are there no Brian McKnight songs in my iTunes yet?
2. When did I start listening to so much Country music?
3. What does Taylor Swift say about...forget it...
Themes...
1. All sappy songs I love
2. All 80s songs that I love
3. All Boyz II Men songs that I love
4. All Sugarland songs...
5. All Kenny Chesney (3 time Entertainer of the Year - CMAs)...
Anyway - I digress - those things will have to happen on another day or post. My new 8 songs:
1. American Pie - Don McLean
I remember being a kid - driving to my grandparents house in the summer - my dad listening to the radio (KRTH 101.1) and this song coming over the speakers. I guess I like reminiscing!
2. Smack That - Akon feat. Eminem
Sign you have seen a movie too many times. When you try to offer an explanation for why you like a song by Akon with Eminem and the only thing that pops into your brain is the following exchange from Superbad.
Mindy: Kinda looked like Eminem.
Officer Michaels: Ah, an M&M...
Officer Slater: M&M, so he was like circular...
Mindy: Marshall Mathers. Eminem, the rapper, Eminem.
Officer Michaels: He looked like this? I'm an amateur.
Officer Slater: 'Cause that kinda looks like an M&M.
Officer Michaels: Longer face? Bigger nose? Would you say his mouth was wider? Open? A gap?
3. Just A Dream - Carrie Underwood
I love the emotion that she sings this song with. Huge Carrie fan - she will be mentioned her a lot.
4. Come On, Let's Go - Ritchie Valens
Ok, so this guy had 6 hits including a couple of # 1s in his career. A career that began in May of 1958 and ended with his death in February 1959 - 8 months! Oh, did I mention that he was 16/17 years old...amazing!!!!
5. Lying Is The Most Fun A Girl Can Have Without Taking Her Clothes Off - Panic! At The Disco
How long is this title? Add it to the group name and it is almost unbearable - but I am a big fan! I guess I have a little Seth Cohen in me too. These guys are way emo!!!
6. Regulators - Warren G feat. Nate Dogg
When this song came out, my buddy Daniel and I would record songs off the radio. When this song came out, my buddy Daniel and I left school after 2nd period to get the CD. Regulators, mount up - I love this song!
7. When I'm Gone - 3 Doors Down
No story...just a kick butt song!
8. God Only Knows - The Beach Boys
My dad owned a drywall company when I was a kid - Alpine Drywall. My memories of that company are this - we would work on one job, and throughout the day we would drive to the other jobs to check on them. We would drive his 1989 Toyota pickup truck. He would buy me a 16 oz glass bottle Dr. Pepper (the only perfect way to enjoy a Dr. Pepper). We would chew sunflower seeds and listen to one of the these: Alleluia (a compilation of testimonies and hymns), sports talk radio (The Loose Cannons or Lee "Hacksaw" Hamilton), an old Alabama cassette (more on this later) or an old Beach Boys cassette. God Only Knows why I think about these things...
Friday, November 28, 2008
Thursday, November 27, 2008
Optimists, look away now....
...is the subtle beginning to a small 4 paragraph article that appears in The Economists. I had an open mic last week and I ranted and raved about the "option ARM", "pick-a-pay", or "negative amortization loan". And this week I come across a disturbing - albeit old article (8.14.08) - from The Economist.
Here are the high(low)lights of the article:
1. 1.4 million households have the "option ARM"
2. Most of them are in California
3. Delinquencies have risen from .49% in Q4 2007 to 3.91% in Q2 of 2008
4. Most payments will surge between 60-80% when the loan recasts
5. These loans account for 45% of Wachovia's portfolio (remember I said watch Wachovia)
6. These loans account for $500 billion dollars in loans
7. The majority of these loans will begin to recast in 2010 to 2011
Commentary - 2007 and 2008 were just the beginning of what is to come. I don't know if the bailout can stem the tide that is coming, but the worst is on it's way. The horizon has more foreclosures and more bank failings.
If you want - you can read the article for yourself - option ARM!
Here are the high(low)lights of the article:
1. 1.4 million households have the "option ARM"
2. Most of them are in California
3. Delinquencies have risen from .49% in Q4 2007 to 3.91% in Q2 of 2008
4. Most payments will surge between 60-80% when the loan recasts
5. These loans account for 45% of Wachovia's portfolio (remember I said watch Wachovia)
6. These loans account for $500 billion dollars in loans
7. The majority of these loans will begin to recast in 2010 to 2011
Commentary - 2007 and 2008 were just the beginning of what is to come. I don't know if the bailout can stem the tide that is coming, but the worst is on it's way. The horizon has more foreclosures and more bank failings.
If you want - you can read the article for yourself - option ARM!
Monday, November 24, 2008
Amazing things you see...
A few weeks back a friend of mine asked me if I could help his sister buy a house. Ever since the first time we went out looking at homes we have seen some of the most amazing things. We have been in 20-30 homes and in at least 25 homes there has been extensive remodeling or additions.
Most phones have cameras on them, and most of the time I don't think to use my camera. However, these 3 pictures I could not help but snap. Please remember - I am not a photographer.
Yes - this is a restaurant booth in a house!
In case you are not sure what this is - it is a toilet in the coat closet! They installed a working toilet in the coat closet!!!!!
This is a kitchen off the master bedroom! The house had 3 working kitchens!
I love this sink - how often do you see a sink like this????
Good Luck!
Most phones have cameras on them, and most of the time I don't think to use my camera. However, these 3 pictures I could not help but snap. Please remember - I am not a photographer.
Yes - this is a restaurant booth in a house!
In case you are not sure what this is - it is a toilet in the coat closet! They installed a working toilet in the coat closet!!!!!
This is a kitchen off the master bedroom! The house had 3 working kitchens!
I love this sink - how often do you see a sink like this????
Good Luck!
Sunday, November 23, 2008
More Banks on the Brink...
Pomona First Federal and Downey Savings are the newest members of the bank meltdown of '08. Here are some facts:
1. 22 banks have failed in 2008
2. 2 huge banks (including the biggest ever - WaMu) have collapsed
3. The biggest may still be yet to come - Citi
I completely understand why WaMu and Downey failed. Both of these institutions promoted and wildly sold the 'option ARM' home loan. This loan literally turned your house into a credit card. The borrower was basically allowed to make a chose as to which payment the wanted to make.
- minimum amount due
- interest only
- 30 year amortized
- 15 year amortized
Let me illustrate a little further. You went to buy a house for $300,000. The prevailing interest rates are (hypothetically) 6%. The 30 year fixed rate payment would be $1,798.65 principle and interest. The 5 year interest only payment would be $1,500.00. However, the 'option ARM' payment coupon would look like this:
$964.86 - minimum (based on 1% amortized 'start rate')
$1,325.00 - interest only
$1,665.91 - 30 year amortized
$2,419.51 - 15 year amortized
The last 3 were based on the 'current interest rates' for the option ARM. The rates for the option ARM were calculated by adding a margin (bank profit) to an index (MTA, COFI, COSI, CODI, LIBOR). All of these indices were operating at unbelievably low rates during '03, '04, '05 and parts of '06. However, the dirty little secret of the option ARM was that the interest rate was adjusting EVERY month. It was only moving inches at a time, but over 2 or 3 years inches become a mile.
Ok, we haven't gotten all of the nuances of this loan out yet. Probably the most dangerous part of the option ARM was the promise that the loan payment would NEVER increase by more than 7.5% per year. How does that work? Well, it simply means that the minimum payment on our above hypothetical will look like this...
$964.86 - year 1
$1,037.22 - year 2
$1,115.01 - year 3
$1,198.64 - year 4
$1,288.54 - year 5
Also, the difference from the minimum due and the interest only option was added to the back of this loan. Meaning any money you did not pay each month was added to your principle balance.
Lastly, after 5 years this loan recast itself. Meaning that it became a 'regular' loan from that point on. By regular I mean, you had to start paying it back! So, how does this effect our example above?
First, let's assume that interest rates stayed flat for 5 years. Second, we are going to assume that the buyer makes the minimum payment option (c'mon this is America). So, we are going to come up with the 'best case scenario' for this buyer.
$4,321.68 - deferred year 1
$3,453.36 - deferred year 2
$2,519.88 - deferred year 3
$1,516.32 - deferred year 4
$437.52 - deferred year 5
$12,248.76 total deferred
So, now our buyer is getting their loan recast. But, instead of it being $300,000 - it is $312,248.76. And, instead of it being 30 years, it is 25 years. So the new monthly payment is - $2,011.83. Meaning that their payment is approximately $750.00 per month more in month 61 than it was in month 60. To compound matters the real estate market is tanking (the house they owe $312,248 for is worth $200,000) and interest rates are up (LIBOR was 1.339 in January of 2003, it was 3.9091 in January 2008).
The last bit of bad news about this is that most Americans did not buy the $300,000 house. They bought the $600,000 house because they could afford the minimum payment and could for the next 5 years - because their loan officer could show them the 'fixed' minimum payment for 5 years.
This is just one of the "toxic debt" instruments that is weighing down the financial institutions in America (and the world). Alan Greenspan actually supported this loan during his tenure as the head of the FED but it may turn out being the loan that brings this country to our knees. Wachovia may be the next big bank to fall because they actually started this loan when they were World Savings.
1. 22 banks have failed in 2008
2. 2 huge banks (including the biggest ever - WaMu) have collapsed
3. The biggest may still be yet to come - Citi
I completely understand why WaMu and Downey failed. Both of these institutions promoted and wildly sold the 'option ARM' home loan. This loan literally turned your house into a credit card. The borrower was basically allowed to make a chose as to which payment the wanted to make.
- minimum amount due
- interest only
- 30 year amortized
- 15 year amortized
Let me illustrate a little further. You went to buy a house for $300,000. The prevailing interest rates are (hypothetically) 6%. The 30 year fixed rate payment would be $1,798.65 principle and interest. The 5 year interest only payment would be $1,500.00. However, the 'option ARM' payment coupon would look like this:
$964.86 - minimum (based on 1% amortized 'start rate')
$1,325.00 - interest only
$1,665.91 - 30 year amortized
$2,419.51 - 15 year amortized
The last 3 were based on the 'current interest rates' for the option ARM. The rates for the option ARM were calculated by adding a margin (bank profit) to an index (MTA, COFI, COSI, CODI, LIBOR). All of these indices were operating at unbelievably low rates during '03, '04, '05 and parts of '06. However, the dirty little secret of the option ARM was that the interest rate was adjusting EVERY month. It was only moving inches at a time, but over 2 or 3 years inches become a mile.
Ok, we haven't gotten all of the nuances of this loan out yet. Probably the most dangerous part of the option ARM was the promise that the loan payment would NEVER increase by more than 7.5% per year. How does that work? Well, it simply means that the minimum payment on our above hypothetical will look like this...
$964.86 - year 1
$1,037.22 - year 2
$1,115.01 - year 3
$1,198.64 - year 4
$1,288.54 - year 5
Also, the difference from the minimum due and the interest only option was added to the back of this loan. Meaning any money you did not pay each month was added to your principle balance.
Lastly, after 5 years this loan recast itself. Meaning that it became a 'regular' loan from that point on. By regular I mean, you had to start paying it back! So, how does this effect our example above?
First, let's assume that interest rates stayed flat for 5 years. Second, we are going to assume that the buyer makes the minimum payment option (c'mon this is America). So, we are going to come up with the 'best case scenario' for this buyer.
$4,321.68 - deferred year 1
$3,453.36 - deferred year 2
$2,519.88 - deferred year 3
$1,516.32 - deferred year 4
$437.52 - deferred year 5
$12,248.76 total deferred
So, now our buyer is getting their loan recast. But, instead of it being $300,000 - it is $312,248.76. And, instead of it being 30 years, it is 25 years. So the new monthly payment is - $2,011.83. Meaning that their payment is approximately $750.00 per month more in month 61 than it was in month 60. To compound matters the real estate market is tanking (the house they owe $312,248 for is worth $200,000) and interest rates are up (LIBOR was 1.339 in January of 2003, it was 3.9091 in January 2008).
The last bit of bad news about this is that most Americans did not buy the $300,000 house. They bought the $600,000 house because they could afford the minimum payment and could for the next 5 years - because their loan officer could show them the 'fixed' minimum payment for 5 years.
This is just one of the "toxic debt" instruments that is weighing down the financial institutions in America (and the world). Alan Greenspan actually supported this loan during his tenure as the head of the FED but it may turn out being the loan that brings this country to our knees. Wachovia may be the next big bank to fall because they actually started this loan when they were World Savings.
Saturday, November 22, 2008
Updated Repo List
Ok, sorry about the list changing. My superiors at Zip keep changing the area that I service. The area that I used to cover was a huge rectangle from Corona to Redlands to Moreno Valley to Hemet to Temecula - ok, that was a huge area!!! So, they changed it to Corona to Riverside to Chino Hills to Ontario...ok, so that is still pretty big! So, they changed it again.
These 4 cities constitute my current area that Zip wants me to work. I have 6 months to help all of you that are not in my current area. This is great timing since it will coincide perfectly with ending of the First Time Home Buyer Tax Credit - errr, Interest Free Loan.
Anyway, please email me and I will add your city to my blog!
These 4 cities constitute my current area that Zip wants me to work. I have 6 months to help all of you that are not in my current area. This is great timing since it will coincide perfectly with ending of the First Time Home Buyer Tax Credit - errr, Interest Free Loan.
Anyway, please email me and I will add your city to my blog!
Corona
Mira Loma
Norco
Riverside
Friday, November 21, 2008
My Jukebox II...
Here is my iPhone playlist for this week...
1. All Summer Long - Kid Rock
Ok, credit Kenny Chesney with this song - I am big fan of his song Summertime and this jam by Kid Rock reminds me of that song. Plus, it sounds like something from the 70s and 80s.
2. Far Away - Nickelback
Didn't I say that I was sappy about these types of songs?
3. Don't Think I Don't Think About It - Darius Rucker
Ok, I am a closet Hootie and the Blowfish fan...
4. How Do You Want It - Tupac feat. K-Ci and JoJo
I love Pac - I Get Around is one of my favorite songs of all-time. Jodeci is one of my favorite bands of all-time - so I love their collaboration!
5. Better As A Memory - Kenny Chesney
This song is about a guy telling a girl - I am not a guy for the long haul. I am better as a memory than I am in real life. Sometimes, I feel like this...
6. Now That We're Done - 112
I just love the blend of these guys voices...did I mention that I am a huge R&B fan? Boyz II Men are #3 on my list of favorite artists - Kenny Chesney and Sugarland are #1 and #2 respectively.
7. Photograph - Def Leppard
I am a sucker for 80s rock. This could have been any song from Hysteria...
8. She Goes All The Way - Rascal Flatts feat. Jaime Foxx
Very interesting blend of vocals - Gary and Jaime make some really good sound together. The content may be a little questionable, but that may be true of all of these songs...
1. All Summer Long - Kid Rock
Ok, credit Kenny Chesney with this song - I am big fan of his song Summertime and this jam by Kid Rock reminds me of that song. Plus, it sounds like something from the 70s and 80s.
2. Far Away - Nickelback
Didn't I say that I was sappy about these types of songs?
3. Don't Think I Don't Think About It - Darius Rucker
Ok, I am a closet Hootie and the Blowfish fan...
4. How Do You Want It - Tupac feat. K-Ci and JoJo
I love Pac - I Get Around is one of my favorite songs of all-time. Jodeci is one of my favorite bands of all-time - so I love their collaboration!
5. Better As A Memory - Kenny Chesney
This song is about a guy telling a girl - I am not a guy for the long haul. I am better as a memory than I am in real life. Sometimes, I feel like this...
6. Now That We're Done - 112
I just love the blend of these guys voices...did I mention that I am a huge R&B fan? Boyz II Men are #3 on my list of favorite artists - Kenny Chesney and Sugarland are #1 and #2 respectively.
7. Photograph - Def Leppard
I am a sucker for 80s rock. This could have been any song from Hysteria...
8. She Goes All The Way - Rascal Flatts feat. Jaime Foxx
Very interesting blend of vocals - Gary and Jaime make some really good sound together. The content may be a little questionable, but that may be true of all of these songs...
Monday, November 17, 2008
Foreclosure Lists - update!
Corona
Norco
Mira Loma
Chino Hills
Chino
Ontario
Riverside
Crestline
Lake Arrowhead - none added!
Running Springs
Big Bear
Norco
Mira Loma
Chino Hills
Chino
Ontario
Riverside
Crestline
Lake Arrowhead - none added!
Running Springs
Big Bear
Sunday, November 9, 2008
Tax Credit
There has been a lot of talk about the tax credit for "first-time homebuyers". Here are a few of the details.
1. First-time homebuyer
2. Home must be purchased between April 9, 2008 - July 1, 2009.
3. Must be a principal residence
The credit is equal to 10% of the home purchase price capping out at $7,500. This "credit" is essentially an interest free loan from the government. I say that because it MUST be re-payed over the next 15 years. You pay it back either from your refund or by paying more taxes ($500 per year). There are also some income restrictions. If you make more than $95,000 (single) or $170,000 (married), then you get no credit at all. At $75,000 (single) and $150,000 (married) the tax credit begins to decrease. All of this is based on your modified adjusted gross income.
Please check out this link for a lot more information about this tax credit.
1. First-time homebuyer
2. Home must be purchased between April 9, 2008 - July 1, 2009.
3. Must be a principal residence
The credit is equal to 10% of the home purchase price capping out at $7,500. This "credit" is essentially an interest free loan from the government. I say that because it MUST be re-payed over the next 15 years. You pay it back either from your refund or by paying more taxes ($500 per year). There are also some income restrictions. If you make more than $95,000 (single) or $170,000 (married), then you get no credit at all. At $75,000 (single) and $150,000 (married) the tax credit begins to decrease. All of this is based on your modified adjusted gross income.
Please check out this link for a lot more information about this tax credit.
Saturday, November 8, 2008
You gotta love this market...
I pick up my phone a few days ago in an effort to keep myself on task. I see my next call is a listing agent that I am waiting to hear from about an offer I have submitted for my client.
Here is the backdrop...we submitted an offer for a home in South Corona last Monday. The home is owned by GMAC and they required their own lender to approve the buyer. My client calls the lender, sends their documentation and we wait. On Friday we receive the pre-approval letter and notice that our offer has finally been submitted to the bank. Monday I left the listing agent a message attempting to find out the status of our offer. On Tuesday, they call me back.
"We have a counter for your buyer," the agent says. They rattle off the terms of the counter and tell us to get back to them.
The next morning I call the agent (after discussing things with my client) accepting the terms.
Now, we are caught up to this morning. I call the agent. "Do we have addendum's for the property," is my question to them. "Oh, your client didn't get the house," is their response.
At the end of the day the other agent negotiates with more than one buyer without telling anyone that there are multiple offers in on the property. They sit on our offer for 10 days before they get back to us with a rejection.
Obviously, my clients are very disappointed...you get a counter offer in this market that isn't "highest and best" and you feel good about your chances. You agree to the terms that the bank sets out for you and you like your chances.
The only problem is unethical agents who do not know how to negotiate in good faith! Good luck to this particular agent once the REO market dries up...I predict he is going to have a VERY hard time finding agents who will work with him.
Here is the backdrop...we submitted an offer for a home in South Corona last Monday. The home is owned by GMAC and they required their own lender to approve the buyer. My client calls the lender, sends their documentation and we wait. On Friday we receive the pre-approval letter and notice that our offer has finally been submitted to the bank. Monday I left the listing agent a message attempting to find out the status of our offer. On Tuesday, they call me back.
"We have a counter for your buyer," the agent says. They rattle off the terms of the counter and tell us to get back to them.
The next morning I call the agent (after discussing things with my client) accepting the terms.
Now, we are caught up to this morning. I call the agent. "Do we have addendum's for the property," is my question to them. "Oh, your client didn't get the house," is their response.
At the end of the day the other agent negotiates with more than one buyer without telling anyone that there are multiple offers in on the property. They sit on our offer for 10 days before they get back to us with a rejection.
Obviously, my clients are very disappointed...you get a counter offer in this market that isn't "highest and best" and you feel good about your chances. You agree to the terms that the bank sets out for you and you like your chances.
The only problem is unethical agents who do not know how to negotiate in good faith! Good luck to this particular agent once the REO market dries up...I predict he is going to have a VERY hard time finding agents who will work with him.
Friday, November 7, 2008
Repo Lists
Corona
Norco
Mira Loma
Chino
Chino Hills
Ontario
Riverside
Crestline
Lake Arrowhead
Running Springs - no data available!
Big Bear - no data available!
Norco
Mira Loma
Chino
Chino Hills
Ontario
Riverside
Crestline
Lake Arrowhead
Running Springs - no data available!
Big Bear - no data available!
Thursday, November 6, 2008
My Jukebox...
So I was listening to the radio today and the guys were talking about the songs on their iPod. Well, I thought it might be interesting to blog about the songs that are currently "in" my iPhone...since I don't own an iPod. By "in" I mean the 8 songs that I am listening to this week while I run. I try to run 35 minues a day and that usually translates to about 8 songs.
Without any further ado...
1.) Don't Stop Believin' Journey
I don't know when I started liking Journey or when I started liking this song but it rocks. It might be because Ryan Atwood liked Journey. Who knows?
2.) Best of You Foo Fighters
Thank Pete Carroll for this song. Just asks a simple question...is something getting the "best of you"? Is my job, my family, my run...God...getting the "best of me"?
3.) Wishing Sugarland
I know I am pretty sappy...but there is something about ballads and Jennifer Nettles voice that gets me everytime!
4.) Stronger Kayne West
"work it, make it, do it, makes us
Harder, Better, Faster, Stronger"
Makes me want to be stronger!
5.) Humps for the Blvd Rodney O & Joe Cooley
This songs just kind of amps me up...it is music (loose use of the word) that my wife hates. It is over the top, but it reminds me of high school...and a much more athletic time of my life.
6.) He Stopped Loving Her Today George Jones
Ok, I am all over the place. I love Country music and George Jones is one of the bests ever! This song is sad, but I love listening to his soothing voice.
7.) Just As I Am Nichole Nordeman
"What kind of love in injury's place,
would leave instead the stain of grace?
So I come in sorrow and I come in shame.
I come to the cross with my pain."
These lyrics are amazing and Nichole's voice is great. I know that you should never mix business with Religion but this is who I am.
8.) Camisado Panic! at the Disco
"Can't take the kid from the fight
take the fight from the kid
Sit back, relax
Sit back, relapse again
Can't take the kid from the fight
take the fight from the kid
Just sit back, just sit back"
I have no idea what the song is really talking about...but this section really keeps me going through the last 1/2 mile to the end of my run.
Small diversion! Here are some things you can write down...our next look at my iPhone will definitely contain some Kenny Chesney and Brian McKnight...my hands down favorite two singers.
Back to real estate and financial planning and economics and politics...ok the last 2 I haven't been hitting on them yet, but they are coming soon!
Without any further ado...
1.) Don't Stop Believin' Journey
I don't know when I started liking Journey or when I started liking this song but it rocks. It might be because Ryan Atwood liked Journey. Who knows?
2.) Best of You Foo Fighters
Thank Pete Carroll for this song. Just asks a simple question...is something getting the "best of you"? Is my job, my family, my run...God...getting the "best of me"?
3.) Wishing Sugarland
I know I am pretty sappy...but there is something about ballads and Jennifer Nettles voice that gets me everytime!
4.) Stronger Kayne West
"work it, make it, do it, makes us
Harder, Better, Faster, Stronger"
Makes me want to be stronger!
5.) Humps for the Blvd Rodney O & Joe Cooley
This songs just kind of amps me up...it is music (loose use of the word) that my wife hates. It is over the top, but it reminds me of high school...and a much more athletic time of my life.
6.) He Stopped Loving Her Today George Jones
Ok, I am all over the place. I love Country music and George Jones is one of the bests ever! This song is sad, but I love listening to his soothing voice.
7.) Just As I Am Nichole Nordeman
"What kind of love in injury's place,
would leave instead the stain of grace?
So I come in sorrow and I come in shame.
I come to the cross with my pain."
These lyrics are amazing and Nichole's voice is great. I know that you should never mix business with Religion but this is who I am.
8.) Camisado Panic! at the Disco
"Can't take the kid from the fight
take the fight from the kid
Sit back, relax
Sit back, relapse again
Can't take the kid from the fight
take the fight from the kid
Just sit back, just sit back"
I have no idea what the song is really talking about...but this section really keeps me going through the last 1/2 mile to the end of my run.
Small diversion! Here are some things you can write down...our next look at my iPhone will definitely contain some Kenny Chesney and Brian McKnight...my hands down favorite two singers.
Back to real estate and financial planning and economics and politics...ok the last 2 I haven't been hitting on them yet, but they are coming soon!
Monday, November 3, 2008
Economics
Ok, so I read this today and absolutely love it. Read it...let me know any thoughts that you have!!!!
Bar Stool Economics
Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100. If they paid their bill the way we pay our taxes, it would
go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest ) would pay $59.
So, that's what they decided to do. The ten men drank in the bar every day
and seemed quite happy with the arrangement, until one day, the owner
threw them a curve. 'Since you are all such good customers, he said , 'I'm
going to reduce the cost of your daily beer by $20. Drinks for the ten now
cost just $80.? The group still wanted to pay their bill the way we pay
our taxes so the first four men were unaffected. They would still drink
for free. But what about the other six men - the paying customers? How
could they divide the $20 windfall so that everyone would get his 'fair
share?' They realized that $20 divided by six is $3.33. But if they
subtracted that from everybody's share, then the fifth man and the sixth
man would each end up being paid to drink his beer. So, the bar owner
suggested that it would be fair to reduce each man's bill by roughly the
same amount, and he proceeded to work out the amounts each should pay.!?
And so:
The fifth man, like the first four, now paid nothing (100% savings). The
sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued
to drink for free. But once outside the restaurant, the men began to
compare their savings. 'I only got a dollar out of the $20,'declared the
sixth man. He pointed to the tenth man,' but he got $10!' 'Yeah, that's
right,' exclaimed the fifth man.? 'I only saved a dollar, too. It's unfair
that he got ten times more than I!'? 'That's true!!' shouted the seventh
man. 'Why should he get $10 back when I got only two? The wealthy get all
the breaks!' 'Wait a minute,' yelled the first four men in unison. 'We
didn't get anything at all. The system exploits the poor!'? The nine men
surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat
down and had beers without him. But when it came time to pay the bill,
they discovered something important. They didn't have enough money between
all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our
tax system works. The people who pay the highest taxes get the most
benefit from a tax reduction.? Tax them too much, attack them for being
wealthy, and they just may not show up anymore. In fact, they might start
drinking overseas where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
Sunday, November 2, 2008
Foreclosure List
Corona
Norco
Mira Loma
Chino
Chino Hills
Riverside
Ontario
Crestline
Lake Arrowhead
Running Springs - none available!
Big Bear
Norco
Mira Loma
Chino
Chino Hills
Riverside
Ontario
Crestline
Lake Arrowhead
Running Springs - none available!
Big Bear
Saturday, October 11, 2008
Repo Lists
Corona
Norco
Mira Loma
Ontario
Chino Hills
Chino
Riverside
Lake Elsinore
There are a couple of new cities represented here. Please email if you want a city that is not listed!
Norco
Mira Loma
Ontario
Chino Hills
Chino
Riverside
Lake Elsinore
There are a couple of new cities represented here. Please email if you want a city that is not listed!
Wednesday, October 8, 2008
CEOs Cash In
In an article that is on MSN Money right now...they posted the salaries of the CEOs of some of the biggest culprits in the financial meltdown between 2005-2007. Check it out...
Countrywide Angelo Mozilo $361.7 million
Fannie Mae Daniel Mudd $11.6 million
Freddie Mac Richard Syron $12.9 million
Bear Stearns James Cayne $42.3 million
Lehman Bros Richard Fuld $186.5 million
AIG Martin Sullivan $25.4 million
Merrill Lynch Stan O’Neal $66 million
WaMu Kerry Killinger $36 million
Wachovia Kennedy Thompson $16 million
CitiGroup Charles Prince $35.6 million
MSN Money
Unbelievable that the salaries total approx. $1 billion...which is 1/700 of the current bailout!
Countrywide Angelo Mozilo $361.7 million
Fannie Mae Daniel Mudd $11.6 million
Freddie Mac Richard Syron $12.9 million
Bear Stearns James Cayne $42.3 million
Lehman Bros Richard Fuld $186.5 million
AIG Martin Sullivan $25.4 million
Merrill Lynch Stan O’Neal $66 million
WaMu Kerry Killinger $36 million
Wachovia Kennedy Thompson $16 million
CitiGroup Charles Prince $35.6 million
MSN Money
Unbelievable that the salaries total approx. $1 billion...which is 1/700 of the current bailout!
Sunday, September 21, 2008
Wednesday, September 10, 2008
USC v. Ohio St.
It is finally here...the long awaited USC Trojans battle the Ohio St. Buckeyes!!! This Saturday we find out if the Trojans have what it takes to win another national championship. Oh, wait, we are playing the Buckeyes...we find out if we can beat a team that plays for a lot of championships and gets blown out!!!
I can wait to get a chance to play an SEC team!
One of our pastors just took a job in the Ohio, so I assume he is being bombarded with a ton of pressure to shift alliances. Stand tall Mark...former Trojan Heisman award winner Carson Palmer certainly is...
Fight On!
Tuesday, September 9, 2008
Corona - 92880
As the housing market continues to fluctuate, it seems that as soon as we figure out where it is at…IndyMac fails, Freddie Mac and Fannie Mae need help, etc. So, I decided to take a look at some hard data. Here is what I did: I looked at all of the closed sales in the 92880 zip code of Corona, CA. My intention was to see what information was out there and then what conclusions could be drawn from that information.
The data…81 homes closed escrow. Of these homes the vast majority were REOs (64 of 81). These homes spent an average of 56 days on the market. The homes that spent the longest time on the market were on for 394 and 361 days respectively. Six of them were sold in the first three days on the market. The average sales price was $379,830.25. The average listing price was $377,727.14, generating a difference of only 0.05%.
The biggest changes down were:
Address Sale List Price/Sq Type %down
8608 Vienna Dr 465,000 399,900 $162.99 REO 16.28
13756 Hill Grove St. 385,000 334,900 $116.49 REO 14.96
13746 Apple Moss Ct 390,000 339,499 $130.57 REO 14.86
13331 Kamelia St 410,000 358,900 $117.44 REO 14.24
7854 Port Arthur Dr 405,000 356,900 $133.62 REO 13.48
The biggest changes up were:
Address Sale List Price/Sq Type %up
7173 Cottage Grove 480,000 550,000 $124.97 NEW 12.73
5903 Red Haven St 350,000 398,000 $105.94 S.S 12.07
5940 Red Haven St 341,000 379,900 $184.72 REO 11.24
6171 Royal Diamond 360,500 399,900 $139.78 Resale 9.83
7316 Pinewood Ct 440,000 484,900 $147.90 Resale 9.26
13901 Burrage St 319,000 351,500 $124.22 REO 9.25
Items that are unknown about this data are: 1.) how much paid by the seller for closing costs, 2.) how many offers were received for these properties, 3.) how many of the buyers utilized down payment assistance programs, 4.) the condition of the property, and 5.) how many upgrades were done to the property.
What conclusions do we come to?
Of the six biggest downward changers, only two were bank owned properties. All six of the biggest shifts up were bank owned homes. This tells me that the banks, for the most part, are listing the homes low in hopes of running the prices up. It also tells me that the new homes, resale homes and short sales are still pricing their homes too high.
Conclusion: the banks are driving the price in this area.
The data…81 homes closed escrow. Of these homes the vast majority were REOs (64 of 81). These homes spent an average of 56 days on the market. The homes that spent the longest time on the market were on for 394 and 361 days respectively. Six of them were sold in the first three days on the market. The average sales price was $379,830.25. The average listing price was $377,727.14, generating a difference of only 0.05%.
The biggest changes down were:
Address Sale List Price/Sq Type %down
8608 Vienna Dr 465,000 399,900 $162.99 REO 16.28
13756 Hill Grove St. 385,000 334,900 $116.49 REO 14.96
13746 Apple Moss Ct 390,000 339,499 $130.57 REO 14.86
13331 Kamelia St 410,000 358,900 $117.44 REO 14.24
7854 Port Arthur Dr 405,000 356,900 $133.62 REO 13.48
The biggest changes up were:
Address Sale List Price/Sq Type %up
7173 Cottage Grove 480,000 550,000 $124.97 NEW 12.73
5903 Red Haven St 350,000 398,000 $105.94 S.S 12.07
5940 Red Haven St 341,000 379,900 $184.72 REO 11.24
6171 Royal Diamond 360,500 399,900 $139.78 Resale 9.83
7316 Pinewood Ct 440,000 484,900 $147.90 Resale 9.26
13901 Burrage St 319,000 351,500 $124.22 REO 9.25
Items that are unknown about this data are: 1.) how much paid by the seller for closing costs, 2.) how many offers were received for these properties, 3.) how many of the buyers utilized down payment assistance programs, 4.) the condition of the property, and 5.) how many upgrades were done to the property.
What conclusions do we come to?
Of the six biggest downward changers, only two were bank owned properties. All six of the biggest shifts up were bank owned homes. This tells me that the banks, for the most part, are listing the homes low in hopes of running the prices up. It also tells me that the new homes, resale homes and short sales are still pricing their homes too high.
Conclusion: the banks are driving the price in this area.
Monday, September 8, 2008
1046 Viewpointe Ln, Corona, CA 92881 - T08123553
Fantastic South Corona home! Don't miss out on this beautiful home great location! Tunrkey! 3 bedrooms, 2 1/2 baths. Kitchen w/tile counters, pergo flooring, light wood cabinets and room for seperate eating area in the kitchen. Formal dining opens to the living room, great for entertaining guests. Vaulted ceilings with TV media niche. Hurry don't let this one get away, priced better than the local bank owned homes. Not a short sale!!!!!
I will post pictures when I have the professional ones this week.
Here are the links to the property on my website and from the MLS.
Zip Realty
MLS
I will post pictures when I have the professional ones this week.
Here are the links to the property on my website and from the MLS.
Zip Realty
MLS
Sunday, September 7, 2008
Save or buy?
As we discuss the merits of buying a home now, my client leans over and asks, "Tim, should we buy now or save for a bigger downpayment?"
This is a very good question. A question that I would have hoped that they would have asked before we sat down on this particular day, but a good question nonetheless. As soon as my clients hear that I have a financial planning background, these are the questions that I get asked.
So, I decided to spend sometime looking at FHA rules (oh, if any of you are mortgage officers, please correct any mistakes that I may have made). I wanted to know if it is actually better to buy a home today with 3% down, or buy it AFTER saving for a downpayment.
Let me set the scenario.
Purchase Price $200,000
Downpayment $6,000 (3%)
Loan Amount $197,000
Interest Rate 6.5%
Tax Rate 1.1%
The purchase price is $197,000 because HUD charges the buyer a 1.5% premium to get an FHA loan.
PITI $1,503.50
PMI $147.75
Payment $1,651.25
Purchase Price $200,000
Downpayment $20,000 (10%)
Loan Amount $180,000
Interest Rate 6.5%
Tax Rate 1.1%
The lowest downpayment for a conventional loan is 10%, or put another way 90% is the highest loan to value of conventional loans.
PITI $1,396.05
The question really is, how long does it take to save the additional $14,000?
At $500 per month, you are looking at 28 months! If you invest the $500 and earn 10% interest your save time is down to 25 months. What is your opportunity risk???? There are 2 of them…
- The prices of homes have corrected in just less than 2 years. The landscape of property values could adjust again and your $20,000 won’t enough to buy the home you want.
- These loan programs exist today. With the looming problems with Fannie Mae and Freddie Mac. Who know what the lending world will look like in 6 months, let alone 2 years.
There are a few other calculations that I want to do with this scenario, but they will have to come in a different post.
Friday, September 5, 2008
Tuesday, August 12, 2008
New Repo Lists
Corona
Lake Elsinore
Murrieta
Temecula
Perris
Moreno Valley
Riverside
I will be publishing a report that I did on the city of Corona for the month of July...check back on Thursday for all of the findings.
Lake Elsinore
Murrieta
Temecula
Perris
Moreno Valley
Riverside
I will be publishing a report that I did on the city of Corona for the month of July...check back on Thursday for all of the findings.
Wednesday, August 6, 2008
What are they saying?
Here are what my clients are saying about me?
"Tim was great! He was very knowledgable about the market and current housing conditions and was always willing to go the extra mile to help us get into our first house! Overall is was a great experience using both Zip and Tim as our agent."
"Tim was great in handling a difficult sale and sellers realtor. Also putting up with us and our continues calls for updates."
"Tim Trainor was the greatest, he handled some hard situation with the other realtor and his clients, even though we are not in the house yet because of a rent back but that is going to work to."
"Tim was informative, honest, and striaght foward."
"Tim was a great agent...When problems came up he was on top of them as fast as possible. I am still sending other clients to him and plan to use him again myself."
Just thought you would like to read what others were saying about me.
"Tim was great! He was very knowledgable about the market and current housing conditions and was always willing to go the extra mile to help us get into our first house! Overall is was a great experience using both Zip and Tim as our agent."
"Tim was great in handling a difficult sale and sellers realtor. Also putting up with us and our continues calls for updates."
"Tim Trainor was the greatest, he handled some hard situation with the other realtor and his clients, even though we are not in the house yet because of a rent back but that is going to work to."
"Tim was informative, honest, and striaght foward."
"Tim was a great agent...When problems came up he was on top of them as fast as possible. I am still sending other clients to him and plan to use him again myself."
Just thought you would like to read what others were saying about me.
Tuesday, July 29, 2008
Wednesday, July 23, 2008
Ducks in a row...
"We need to cancel," are the words the ring through my cell phone.
Unfortunate words...mostly because we had all of our ducks in a row. We had talked about all of the pertinent issues (financing, down payments, deposits, inspections, found home, etc...).
As we have talked about previously, buying a home is not a spur of the moment transaction. It requires planning and effort. It also requires diligence...following up with the lender, providing them with tax returns, pay-stubs, credit reports, signatures.
My clients and I had spent hours looking at homes. We had spent hours pouring over listing after listing, hoping to find the perfect home. We had written a few offers...had a few rejected. We hit a snag on the home that they wanted...it had a snag due to the FHA 90 day flipping rule...or should I say the amended rule (see FHA Amends Anti-Flipping Rule). The lender and I worked our way through this "snag" only to find out that the home was sold a few hours earlier.
So, here we are...having found another home...having reached agreement. The lender began to flip-flop on loan programs. He began to call all sides (seller, buyer, myself) and tell us all different stories.
"We are in underwriting," he tells me.
"You need to fix your credit," he tells my client.
"Tim is not getting me the info I need," he tells the listing agent.
We have spent 3 weeks working on a deal, signing disclosures, paying for appraisals and inspections and out of nowhere the deal is dead. The lender (or should I say more specifically the mortgage broker) is unable to perform on his promises.
My client is mad. The listing agent is frustrated. I am left trying to figure out the details...with a lot of unanswered questions. Am I working with a qualified buyer? Do my buyers want to buy a home?
The result is that we have to cancel the transaction. My clients are out $300 for the home inspection and $375 for the appraisal (and are lucky that their deposit is not in doubt). I am frustrated because of all of the effort put into this transaction. And the listing agent has to put the house back on the market. All because the mortgage broker didn't do what he said he could do.
So we are left to wonder how the most important duck got out of the row.
Unfortunate words...mostly because we had all of our ducks in a row. We had talked about all of the pertinent issues (financing, down payments, deposits, inspections, found home, etc...).
As we have talked about previously, buying a home is not a spur of the moment transaction. It requires planning and effort. It also requires diligence...following up with the lender, providing them with tax returns, pay-stubs, credit reports, signatures.
My clients and I had spent hours looking at homes. We had spent hours pouring over listing after listing, hoping to find the perfect home. We had written a few offers...had a few rejected. We hit a snag on the home that they wanted...it had a snag due to the FHA 90 day flipping rule...or should I say the amended rule (see FHA Amends Anti-Flipping Rule). The lender and I worked our way through this "snag" only to find out that the home was sold a few hours earlier.
So, here we are...having found another home...having reached agreement. The lender began to flip-flop on loan programs. He began to call all sides (seller, buyer, myself) and tell us all different stories.
"We are in underwriting," he tells me.
"You need to fix your credit," he tells my client.
"Tim is not getting me the info I need," he tells the listing agent.
We have spent 3 weeks working on a deal, signing disclosures, paying for appraisals and inspections and out of nowhere the deal is dead. The lender (or should I say more specifically the mortgage broker) is unable to perform on his promises.
My client is mad. The listing agent is frustrated. I am left trying to figure out the details...with a lot of unanswered questions. Am I working with a qualified buyer? Do my buyers want to buy a home?
The result is that we have to cancel the transaction. My clients are out $300 for the home inspection and $375 for the appraisal (and are lucky that their deposit is not in doubt). I am frustrated because of all of the effort put into this transaction. And the listing agent has to put the house back on the market. All because the mortgage broker didn't do what he said he could do.
So we are left to wonder how the most important duck got out of the row.
Tuesday, July 22, 2008
Sunday, July 6, 2008
Repo Lists
Corona
Lake Elsinore
Murrieta
Temecula
Perris
Moreno Valley
Riverside
Sorry about the delay. I will post new ones very soon.
Lake Elsinore
Murrieta
Temecula
Perris
Moreno Valley
Riverside
Sorry about the delay. I will post new ones very soon.
Wednesday, July 2, 2008
Wait...why didn't we get it???
"Tim, what am I supposed to do?," my client exclaimed this afternoon.
We were standing on the dead grass in the front lawn of plan G for this particular client. I could sense the frustration in her voice, I could see it in her eyes and her body language as we stood looking at this "new" home. I felt it too. You knew there is a story coming...
My client is a lovely woman who is trying to get her family a new home. She is a single mom who works hard to provide for her family. Last week we fell in love with a beautiful home in Moreno Valley. The home was a little more than she could afford. We made a very reasonable offer...but we just couldn't reach an agreement.
So we met late last Wednesday night. The house was perfect. It boasted a big back yard, 3 bedrooms, a den, and it was perfectly in her budget. We got to work on submitting an offer.
The listing price was $145,000. The seller was offering $5,100 in closing costs. This nets the bank (the seller) $139,900. Our offer was $155,000 with $10,000 in closing costs. This offer nets the bank $145,000. A difference of 3.645% above the banks net.
I begin calling the listing agent daily...multiple times a day. I speak with the agent on Saturday and he tells me that they have received 2 offers. He told me to call his assistant to determine if we were "competitive" with our offer. I called her on Monday, Tuesday...finally chatting with her late yesterday afternoon. She said she was unaware of the other offer price and that she would call me back. I am still waiting for that call.
My client wanted this home very bad. So, I called again this morning, and was informed that they had accepted another offer. I called the listing agent and asked him how far we were from being accepted. His response...
We had the higher offer!!!!
Why would this be? How could the bank accept less? Who makes these decisions?
The only logical explanation I can come up with is that the bank (sellers) are in the business of closing deals. Therefore, someone had to have a stronger offer. What constitutes a stronger offer (more downpayment, better pre-qual letter, higher credit scores, etc...)?
Either way...the ebbs and flows of this market continue to change. Summer is typically a very competitive time of year for buying a home. This year proves to be more challenging...because there is no rhyme or reason to which offer the banks are going to accept.
We were standing on the dead grass in the front lawn of plan G for this particular client. I could sense the frustration in her voice, I could see it in her eyes and her body language as we stood looking at this "new" home. I felt it too. You knew there is a story coming...
My client is a lovely woman who is trying to get her family a new home. She is a single mom who works hard to provide for her family. Last week we fell in love with a beautiful home in Moreno Valley. The home was a little more than she could afford. We made a very reasonable offer...but we just couldn't reach an agreement.
So we met late last Wednesday night. The house was perfect. It boasted a big back yard, 3 bedrooms, a den, and it was perfectly in her budget. We got to work on submitting an offer.
The listing price was $145,000. The seller was offering $5,100 in closing costs. This nets the bank (the seller) $139,900. Our offer was $155,000 with $10,000 in closing costs. This offer nets the bank $145,000. A difference of 3.645% above the banks net.
I begin calling the listing agent daily...multiple times a day. I speak with the agent on Saturday and he tells me that they have received 2 offers. He told me to call his assistant to determine if we were "competitive" with our offer. I called her on Monday, Tuesday...finally chatting with her late yesterday afternoon. She said she was unaware of the other offer price and that she would call me back. I am still waiting for that call.
My client wanted this home very bad. So, I called again this morning, and was informed that they had accepted another offer. I called the listing agent and asked him how far we were from being accepted. His response...
We had the higher offer!!!!
Why would this be? How could the bank accept less? Who makes these decisions?
The only logical explanation I can come up with is that the bank (sellers) are in the business of closing deals. Therefore, someone had to have a stronger offer. What constitutes a stronger offer (more downpayment, better pre-qual letter, higher credit scores, etc...)?
Either way...the ebbs and flows of this market continue to change. Summer is typically a very competitive time of year for buying a home. This year proves to be more challenging...because there is no rhyme or reason to which offer the banks are going to accept.
Monday, June 30, 2008
Links
When I am out with clients a few questions come up more often than any others. They are...
1.) How are the schools? RCOE is a wealth of information for the schools in Riverside County
2.) What are the taxes? Unfortunately, I have not been able to find a good site for getting the tax rate for the property.
1.) How are the schools? RCOE is a wealth of information for the schools in Riverside County
2.) What are the taxes? Unfortunately, I have not been able to find a good site for getting the tax rate for the property.
Friday, June 20, 2008
Thursday, June 19, 2008
Foreclosure List pt. 2
I don't know how the rest of the summer is going to go...BUT, in the main 6 cities that I work in...there are 260 new foreclosed homes in the last week.
Corona (49)
Lake Elsinore (31)
Murrieta (40)
Temecula (24)
Perris (35)
Moreno Valley (81)
Check back every week...as these lists obviously are changing quite rapidly!!!
Corona (49)
Lake Elsinore (31)
Murrieta (40)
Temecula (24)
Perris (35)
Moreno Valley (81)
Check back every week...as these lists obviously are changing quite rapidly!!!
Wednesday, June 11, 2008
Foreclosure Lists
Here are the first lists. These are the homes that are listed as bank owned in the MLS.
Corona
LakeElsinore
Murrieta
Temecula
Perris
Moreno Valley
I will update these lists every week. The subsequent lists will be much shorter because they will only include the homes listed in the previous 7 days. Also, I am thinking about adding a short sale link in the coming weeks.
Check back soon!
Corona
LakeElsinore
Murrieta
Temecula
Perris
Moreno Valley
I will update these lists every week. The subsequent lists will be much shorter because they will only include the homes listed in the previous 7 days. Also, I am thinking about adding a short sale link in the coming weeks.
Check back soon!
Monday, June 9, 2008
New Tuesday Feature
I am going to start publishing REO lists for the following areas. Please let me know if you are interested in another area.
1. Corona
2. Lake Elsinore
3. Wildomar
4. Murrieta
5. Temecula
6. Menifee
7. Perris
8. Moreno Valley
9. Hemet
1. Corona
2. Lake Elsinore
3. Wildomar
4. Murrieta
5. Temecula
6. Menifee
7. Perris
8. Moreno Valley
9. Hemet
How much is too much?
"How much should we offer?" exclaimed my client as we enjoyed our vanilla lattes at the Coffee Bean.
It is an interesting question. It implies that the bank will accept less than the listing price. Also, most buyers are under the misconception that banks "always" counter-offer. I am not sure where this myth has come from... It also implies that the bank will accept "less" than the listing price. I say this because I hardly hear, "I know they are asking $300,000, but I think it is worth $350,000, therefore offer that."
I have a couple of clients looking in the same area of Corona. So, I thought I would go back and look at the homes that we have made offers on (and not gotten accepted). All of the offers were written between 30-60 days ago...and most of the homes closed escrow in the past 10 days.
The statistics are a little surprising. On average homes sold for 5% ABOVE list price - please remember these are closed statistics on homes that I have written offers on. The lowest below the average was 1.1% below the asking price. This was on the second highest priced home in the data. The highest above was 7.9% above the asking price. This was the highest priced home in the data.
As we continue to look at this numbers we see that a total of 10 homes were in the field and only 2 of them sold for less than the asking price. And as we saw above...this was not that far below asking price it was just over 1% below asking price. Last bit of information of the 10 homes, 9 were REOs and 1 was a short sale...there was NO resales in the data.
A couple of suggestions for why this is: 1.) the listing agents have lowered the prices to make "virtual auction". By lower the price below market value, they get people to perceive it as a "bargain". 2.) the buyers are frustrated at writing low offers and not getting a home so they reverse course and begin to offer MORE than asking to "just get a home."
How then do we go forward?
We base our offers on the "market value" of the property. We don't decide before we walk through the doors how much we want to pay for the home.
My usual response to the question I got that morning at the Coffee Bean - "I think they will accept 10% below market value" - just isn't accurate anymore. My boss always says, "I know they will accept the listing price" - this might not be the case either!
It is an interesting question. It implies that the bank will accept less than the listing price. Also, most buyers are under the misconception that banks "always" counter-offer. I am not sure where this myth has come from... It also implies that the bank will accept "less" than the listing price. I say this because I hardly hear, "I know they are asking $300,000, but I think it is worth $350,000, therefore offer that."
I have a couple of clients looking in the same area of Corona. So, I thought I would go back and look at the homes that we have made offers on (and not gotten accepted). All of the offers were written between 30-60 days ago...and most of the homes closed escrow in the past 10 days.
The statistics are a little surprising. On average homes sold for 5% ABOVE list price - please remember these are closed statistics on homes that I have written offers on. The lowest below the average was 1.1% below the asking price. This was on the second highest priced home in the data. The highest above was 7.9% above the asking price. This was the highest priced home in the data.
As we continue to look at this numbers we see that a total of 10 homes were in the field and only 2 of them sold for less than the asking price. And as we saw above...this was not that far below asking price it was just over 1% below asking price. Last bit of information of the 10 homes, 9 were REOs and 1 was a short sale...there was NO resales in the data.
A couple of suggestions for why this is: 1.) the listing agents have lowered the prices to make "virtual auction". By lower the price below market value, they get people to perceive it as a "bargain". 2.) the buyers are frustrated at writing low offers and not getting a home so they reverse course and begin to offer MORE than asking to "just get a home."
How then do we go forward?
We base our offers on the "market value" of the property. We don't decide before we walk through the doors how much we want to pay for the home.
My usual response to the question I got that morning at the Coffee Bean - "I think they will accept 10% below market value" - just isn't accurate anymore. My boss always says, "I know they will accept the listing price" - this might not be the case either!
Friday, June 6, 2008
Math that makes NO cents...
One lazy day last month I was sitting at my computer when an email comes over from a client.
"Tim, the house we made an offer on last month is back on the market. It is on the market for a lot less than we offered. Can you tell me what is up with that?"
What happened next was truly puzzling. It also is something that most clients (and this Realtor) don't fully understand.
First, a little background. The home is in Lake Arrowhead, CA. My client is looking for a second home. We went up to Arrowhead in April and looked at 7 homes (5 REO, 1 Resale, 1 Short Sale). As usual my client loved the short sale. It was a quaint Chateau just outside of the "woods" in Lake Arrowhead. The home was built in 1963 and has a very nice view of the lake. However, because it is outside of the "woods" it does not have access to the lake. The home was listed for $279,900. We ran a comp check and determined that this might be a bit high, yet we made a full price offer because of the short sale status. The listing agent said that they had already done a BPO and had approval at $325,000. Side-note...it is amazing to me how many listing agents list homes BELOW their approval price.
After a few weeks of waiting, the bank came back saying, "we will not go lower than $315,000." I advised my client not to raise their offer. I felt that the home was actually overpriced at $279,900. We sent over comps on the property showing the bank closed sales in the area (out of the "woods") for $240,000. We let them know that we were still willing to pay $280,000 (my clients really liked the place).
"No," the bank said.
My client was disappointed. We moved on. We have continued looking in the area finding nothing that knocked their socks off.
After a very short month...I got the above mentioned email.
The house was back on the market for $218,000. This bank had an offer for $280,000 that they would not accept 28 days before. On this day, they were about to accept a "full price" offer of $218,000. Literally, they cost themselves $62,000 + any foreclosure fees (usually $20,000-30,000).
We have a couple theories as to why this happened. 1.) The seller didn't qualify for a short sale, so the bank would rather foreclose than help out the seller. 2.) The lost mitigation departments at banks pay their employees more for the disposition of an REO than they do for a short sale.
These are just theories...all we know for certain is that when short sales are involved banks make no cents!
"Tim, the house we made an offer on last month is back on the market. It is on the market for a lot less than we offered. Can you tell me what is up with that?"
What happened next was truly puzzling. It also is something that most clients (and this Realtor) don't fully understand.
First, a little background. The home is in Lake Arrowhead, CA. My client is looking for a second home. We went up to Arrowhead in April and looked at 7 homes (5 REO, 1 Resale, 1 Short Sale). As usual my client loved the short sale. It was a quaint Chateau just outside of the "woods" in Lake Arrowhead. The home was built in 1963 and has a very nice view of the lake. However, because it is outside of the "woods" it does not have access to the lake. The home was listed for $279,900. We ran a comp check and determined that this might be a bit high, yet we made a full price offer because of the short sale status. The listing agent said that they had already done a BPO and had approval at $325,000. Side-note...it is amazing to me how many listing agents list homes BELOW their approval price.
After a few weeks of waiting, the bank came back saying, "we will not go lower than $315,000." I advised my client not to raise their offer. I felt that the home was actually overpriced at $279,900. We sent over comps on the property showing the bank closed sales in the area (out of the "woods") for $240,000. We let them know that we were still willing to pay $280,000 (my clients really liked the place).
"No," the bank said.
My client was disappointed. We moved on. We have continued looking in the area finding nothing that knocked their socks off.
After a very short month...I got the above mentioned email.
The house was back on the market for $218,000. This bank had an offer for $280,000 that they would not accept 28 days before. On this day, they were about to accept a "full price" offer of $218,000. Literally, they cost themselves $62,000 + any foreclosure fees (usually $20,000-30,000).
We have a couple theories as to why this happened. 1.) The seller didn't qualify for a short sale, so the bank would rather foreclose than help out the seller. 2.) The lost mitigation departments at banks pay their employees more for the disposition of an REO than they do for a short sale.
These are just theories...all we know for certain is that when short sales are involved banks make no cents!
Thursday, June 5, 2008
Not quite prepared
We are sitting in the kitchen of a lovely home in Murrieta. My client is taken by the upgrades all over the place. Granite counter-tops in the kitchen and the bathrooms. Tile floors throughout the downstairs. Nice carpet with a decidedly upgraded pad.
"We want this one," the wife boldly proclaims!
"Who are you qualified with?" (shame on me for not asking this question sooner), I ask.
"We haven't looked into financing yet," she says.
"Banks will not look at offers without a pre-qualification letter," I say.
"That is ok, we will call our lender today and get that ball rolling," he says.
We part company that day with a promise to chat the following day. I sit and wait as they confer with the mortgage officer. He requires documents in order to qualify them (bank statements, income verification, credit scores, etc...). It takes them all day to get those documents together.
The next day (day 3) they get all of the information to the lender. I get the pre-qual a little after noon. I was prepared and had the documents ready. I send the contracts and the pre-qual to the listing agent.
Now, we are both waiting. My phone rings off the hook...literally. I get calls every 3 hours from my clietns, wondering if there is any news. And of course there is not. I call the listing agent. Message after message is left, emails are left...NO RESPONSE! The listing agents are so busy that they do not care about good service.
Finally, on day 10 we get the call. "We accepted an offer 5-6 days ago," they say.
Two weeks have gone by, and somehow we are just barely to step 2. We sat in the kitchen of a beautiful home, unfortunately, we just weren't ready to buy.
"We want this one," the wife boldly proclaims!
"Who are you qualified with?" (shame on me for not asking this question sooner), I ask.
"We haven't looked into financing yet," she says.
"Banks will not look at offers without a pre-qualification letter," I say.
"That is ok, we will call our lender today and get that ball rolling," he says.
We part company that day with a promise to chat the following day. I sit and wait as they confer with the mortgage officer. He requires documents in order to qualify them (bank statements, income verification, credit scores, etc...). It takes them all day to get those documents together.
The next day (day 3) they get all of the information to the lender. I get the pre-qual a little after noon. I was prepared and had the documents ready. I send the contracts and the pre-qual to the listing agent.
Now, we are both waiting. My phone rings off the hook...literally. I get calls every 3 hours from my clietns, wondering if there is any news. And of course there is not. I call the listing agent. Message after message is left, emails are left...NO RESPONSE! The listing agents are so busy that they do not care about good service.
Finally, on day 10 we get the call. "We accepted an offer 5-6 days ago," they say.
Two weeks have gone by, and somehow we are just barely to step 2. We sat in the kitchen of a beautiful home, unfortunately, we just weren't ready to buy.
Sunday, June 1, 2008
Where is the best deal?
As we walked into the front door, the finely appointed furniture and the wood floors stood out to me. We had just been through four or five bank owned homes and this one was not. This home was being sold by some folks with a lot of equity who need to be closer to their kids school. We moved through the meticulously cared for rooms, the kitchen, into the fully landscaped backyard and marveled at the differences in the places we had seen that day. Absent were the mysterious odors, gone was the dust from another Realtor leaving a window open, there was no dead grass in the backyard...instead those things were replaced with candles, posters from kids favorite rock bands, antique furniture, and an amazing pool in the backyard. My clients fell in love.
My weeks are usually consumed by wandering in and out of many vacant homes throughout Riverside County (Corona, Riverside, Lake Elsinore, Murrieta, Temecula). Homes where you need to have a creative mind to see the potential of what might be. These homes are missing kitchens, they have holes in the wall, they have mangled carpet (or tile, or wood), dead grass in the front yard and no landscaping in the backyard, they have left behind desks in the garage and sometimes trash all throughout the backyard.
This dichotomy presents a big problem. My clients are looking for turnkey homes. They want to get the best deals AND they want the home to be perfect. Clients usually want Wal-Mart prices with Saks Fifth Avenue service. However, this place usually does not exist. And when it does, it is listed for $318,000 and sells for $385,000...true story of a home in Corona 6 weeks ago.
In today's market, buyers need to understand that turnkey means that there is a seller (not the bank) involved. A seller who measured their kids in the kitchen doorway. A seller who used to have Thanksgiving dinner in the dining room. A seller who had barbecues in the backyard for the Fourth of July. A seller who last year knew their house was worth at least 30% more than it is today. A seller who has a mortgage on this home.
The bank usually isn't too worried about the condition of the property. The bank cares about none of these things. The bank cares about one thing, the bottom line (which usually is 92% of market value).
As we walked out of the house, my clients looked at me and said, "we want this one."
I knew...I could see it in their eyes.
They made a decision that is so hard for buyers to make today. They made their decision based on the location of the property, based on the needs of their family, based on what they wanted. They wanted turnkey...and they paid top dollar for it. Most buyers want the best home in the neighborhood for less than the worst home in the neighborhood.
Unfortunately, they spend a lot of time looking at homes, writing a lot of low offers while someone else is moving into their home.
My weeks are usually consumed by wandering in and out of many vacant homes throughout Riverside County (Corona, Riverside, Lake Elsinore, Murrieta, Temecula). Homes where you need to have a creative mind to see the potential of what might be. These homes are missing kitchens, they have holes in the wall, they have mangled carpet (or tile, or wood), dead grass in the front yard and no landscaping in the backyard, they have left behind desks in the garage and sometimes trash all throughout the backyard.
This dichotomy presents a big problem. My clients are looking for turnkey homes. They want to get the best deals AND they want the home to be perfect. Clients usually want Wal-Mart prices with Saks Fifth Avenue service. However, this place usually does not exist. And when it does, it is listed for $318,000 and sells for $385,000...true story of a home in Corona 6 weeks ago.
In today's market, buyers need to understand that turnkey means that there is a seller (not the bank) involved. A seller who measured their kids in the kitchen doorway. A seller who used to have Thanksgiving dinner in the dining room. A seller who had barbecues in the backyard for the Fourth of July. A seller who last year knew their house was worth at least 30% more than it is today. A seller who has a mortgage on this home.
The bank usually isn't too worried about the condition of the property. The bank cares about none of these things. The bank cares about one thing, the bottom line (which usually is 92% of market value).
As we walked out of the house, my clients looked at me and said, "we want this one."
I knew...I could see it in their eyes.
They made a decision that is so hard for buyers to make today. They made their decision based on the location of the property, based on the needs of their family, based on what they wanted. They wanted turnkey...and they paid top dollar for it. Most buyers want the best home in the neighborhood for less than the worst home in the neighborhood.
Unfortunately, they spend a lot of time looking at homes, writing a lot of low offers while someone else is moving into their home.
Tuesday, May 20, 2008
Something for nothing????
One of the biggest pet peeves in my life is the famous $10 off your next purchase of $50 coupon. It is a big fat scam. All I can think of when I see this is, "I get to spend $40 in order to utilize the $10 worth of savings." Now, if I am on my way to Best Buy to buy a new iPod...this is a good deal. But, this is just not the case. Usually it comes from a store that you just bought something from (notice the past tense...YOU JUST BOUGHT SOMETHING) and it is good on your next purchase...oh, and don't forget it is only valid for 20 days...or some other artificial way of tricking us to spend money on something we don't need...so we can save 20%.
Zip Realty's rebate does not work this way at all. In fact, it only has 2 requirements...1.) you buy a house, and 2.) you buy it using a Zip Realty agent. There are 2 vital pieces of information that I want you to get out of this...1.) how the Zip Realty rebate works, and 2.) who pays real estate commissions.
Alright, the rebate is simple. Zip credits people who buy homes through Zip 20% of the commissions paid. This is different from the above situation because I happen to believe that I am a pretty decent salesman, but I have never been able to convince someone to buy a house. It is just not something that people jump into with a lot of thought. My point is, if you are not interested in buying a house then the lure of a rebate has no attraction to you. However, if you are, Zip pays you to use us. Therefore, let me illustrate how the rebate works. You want to buy a house for $300,000. The commissions that are to be paid to the selling broker are 3%.
You can either have the 20% assigned to you straight out of escrow. Or, you can have Zip mail you a check after the close of escrow. If you chose a check, it can take up to 30 days for it to be mailed.
Now for the best part. In most real estate transactions the commission is paid by the seller. So, the seller pays the commission. Zip Realty passes a portion of it along to the buyer. So unlike the above mentioned coupon you literally get something for nothing. Because remember...you were going to buy a house anyway!
Having said all of this...why would you buy a home from anyone besides Zip Realty?
Zip Realty's rebate does not work this way at all. In fact, it only has 2 requirements...1.) you buy a house, and 2.) you buy it using a Zip Realty agent. There are 2 vital pieces of information that I want you to get out of this...1.) how the Zip Realty rebate works, and 2.) who pays real estate commissions.
Alright, the rebate is simple. Zip credits people who buy homes through Zip 20% of the commissions paid. This is different from the above situation because I happen to believe that I am a pretty decent salesman, but I have never been able to convince someone to buy a house. It is just not something that people jump into with a lot of thought. My point is, if you are not interested in buying a house then the lure of a rebate has no attraction to you. However, if you are, Zip pays you to use us. Therefore, let me illustrate how the rebate works. You want to buy a house for $300,000. The commissions that are to be paid to the selling broker are 3%.
$300,000 x 3% = $9,000 in commissions
$9,000 x 20% = $1,800 in rebate
$9,000 x 20% = $1,800 in rebate
You can either have the 20% assigned to you straight out of escrow. Or, you can have Zip mail you a check after the close of escrow. If you chose a check, it can take up to 30 days for it to be mailed.
Now for the best part. In most real estate transactions the commission is paid by the seller. So, the seller pays the commission. Zip Realty passes a portion of it along to the buyer. So unlike the above mentioned coupon you literally get something for nothing. Because remember...you were going to buy a house anyway!
Having said all of this...why would you buy a home from anyone besides Zip Realty?
Saturday, May 17, 2008
How hot is the market?
The sun is blazing as we arrive at our first home to tour. It is a spring day in Southern California, it feels like we are in the middle of summer. I glance down on my dashboard and catch a glimpse of the outside temp...106 degrees. My client climbs out of their truck, "I bet it is over a 100 degrees today," she says. We are about to tour our first home of the day and it is already after 2pm...with 10 more to follow. My day is really busy, with a 4:30pm and a 7pm appointment still ahead of me, so there is a little spring in my step. All of the homes on our list today are bank owned.
The first home is beat up. The carpeting is destroyed, the paint leaves a little to be desired, the house is covered in dirt because of the broken out windows. There is an empty pool in the backyard and the back fence is falling down. Not a great start to the day. Second and third home...more of the same. By the time we peer into our fourth home, we have no idea what to expect. The lot is huge. The house is a lot bigger than the previous homes. There is a lot of potential. "This one goes down as a yes," my client says as we depart for the next house.
We are standing across the street from the last house. She is huge...2,500 square feet. But, as usual with a bank repo...she is in need of some love (new carpet - the owners ripped most of it out, new paint, holes in a lot of the walls, etc...). "We want to offer on 3 of the homes that we have seen today," my client says as we are about to part company. Last week we found a home that they liked...but it was gone before we could get our offer submitted. They understand the sting of being so close. As do scores of my other clients. A few of them have resorted to writing offers in bulk, and hoping that one sticks.
I hear all the news about tighter lending restrictions...I hear all of the news about more bank repos coming on the market...I hear all of the news about the doom and gloom of the economy. BUT, in my little corner of the world...the real estate market is as hot as that Southern California sun!
The first home is beat up. The carpeting is destroyed, the paint leaves a little to be desired, the house is covered in dirt because of the broken out windows. There is an empty pool in the backyard and the back fence is falling down. Not a great start to the day. Second and third home...more of the same. By the time we peer into our fourth home, we have no idea what to expect. The lot is huge. The house is a lot bigger than the previous homes. There is a lot of potential. "This one goes down as a yes," my client says as we depart for the next house.
We are standing across the street from the last house. She is huge...2,500 square feet. But, as usual with a bank repo...she is in need of some love (new carpet - the owners ripped most of it out, new paint, holes in a lot of the walls, etc...). "We want to offer on 3 of the homes that we have seen today," my client says as we are about to part company. Last week we found a home that they liked...but it was gone before we could get our offer submitted. They understand the sting of being so close. As do scores of my other clients. A few of them have resorted to writing offers in bulk, and hoping that one sticks.
I hear all the news about tighter lending restrictions...I hear all of the news about more bank repos coming on the market...I hear all of the news about the doom and gloom of the economy. BUT, in my little corner of the world...the real estate market is as hot as that Southern California sun!
Friday, May 16, 2008
Short Sales pt. 2
I was on the phone with a listing agent yesterday. He told me, "I am still collecting offers," and he said, "I am going to send you a counter offer." I have heard this a million times before. A listing agent doing his job in collecting the absolute best offer he can for is client. However, this home in particular is a short sale...a wonderful property in Southern California...just a shade under 2,000 sf, with a nice swimming pool...a swimming pool that we have never seen because the listing agent will not allow us to gain access to the home because tenants reside in the home. My clients love the home. So, we wait...we hope for the best.
The problem is that the listing agent does not have a good grasp of the short sale process. He is working under a set of rules that just don't apply right now. When the home is a short sale, the home owner does not make the ultimate selling decision. This decision is made by the bank. The bank gathers all of the information and then makes a decision (which they send back to the listing agent for selecting the offer).
The process of a short sale:
1.) List the property
2.) Gather financial documents (to show financial hardship)
3.) Accept an offer
4.) Submit "short sale package" (#2 & #3)
5.) Decision about financial hardship (2-6 weeks)
6.) Decision about price (2-6 weeks)
a. Appraisal
b. BPOs
7.) Lender Approval
The listing agent should have submitted the offer to the bank so that #5 could be started. Instead, we are stuck in limbo...having waited weeks since submitting the offer...knowing that weeks of waiting lie ahead of us.
For now, my clients wait...I wait. Feeling somewhat paralyzed by the idea of getting the house that we want, but not knowing. There are a lot of land mines that we have to navigate in the coming weeks (2 approvals, inspections, tenants, etc...). Ultimately, we are waiting on a home that may not even be for sale.
The problem is that the listing agent does not have a good grasp of the short sale process. He is working under a set of rules that just don't apply right now. When the home is a short sale, the home owner does not make the ultimate selling decision. This decision is made by the bank. The bank gathers all of the information and then makes a decision (which they send back to the listing agent for selecting the offer).
The process of a short sale:
1.) List the property
2.) Gather financial documents (to show financial hardship)
3.) Accept an offer
4.) Submit "short sale package" (#2 & #3)
5.) Decision about financial hardship (2-6 weeks)
6.) Decision about price (2-6 weeks)
a. Appraisal
b. BPOs
7.) Lender Approval
The listing agent should have submitted the offer to the bank so that #5 could be started. Instead, we are stuck in limbo...having waited weeks since submitting the offer...knowing that weeks of waiting lie ahead of us.
For now, my clients wait...I wait. Feeling somewhat paralyzed by the idea of getting the house that we want, but not knowing. There are a lot of land mines that we have to navigate in the coming weeks (2 approvals, inspections, tenants, etc...). Ultimately, we are waiting on a home that may not even be for sale.
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