Weekend (and every day) Motivation

Recently I printed out the text below and framed it.  It now sits comfortably just beneath the two monitors on my desk so I can’t help but look at it several times a minute. 

 

I Am Your Competition.

Every minute you are late for work puts me one minute ahead of you.

Every phone call you decide not to make places me one call ahead of you.

The fewer customers you see the more I have.

The more time you take off, the more time I have to contact your customers.

If you’re unprepared for a meeting, I never will be.

Every excuse you have for a failure makes me stronger.

When you fail to improve your skills, I improve mine.

When you start your day without objectives, I’m busy achieving mine. 

Whenever you hesitate, I execute. 

 

Every day I am determined to beat you. 

Tax Considerations for Investment Properties

I understand that this may be a “little day-late, dollar-short” considering what can or cannot be written off was solidified at the end of 2017; but perhaps this can be a helpful guide for your 2018 taxes. 

Interestingly, as I write this I am brought to the painful realization that the year is well progressing.  It’s already mid-March, and that scares me simply because there is still so much to do for 2018.

Please keep this handy.  It will serve you well with any investment real estate acquisition.    

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Inflation of US Consumer Goods and Services.

Huh... the things the government regulates to make “more fair” have gotten ridiculously more expensive in 20 years, while those dominated by the free market got less expensive. I’m sure that’s just a coincidence.

Germane to Housing, although yes, more expensive than 10 years ago; the nationwide index is keeping pace slightly above inflation.  That is a good thing, and since this is a 20 year average and we have to take into effect the boom then crash from 2005-2010, housing is exactly where it should be. 

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Mortgage Hype.

I have been seeing all these ads from mortgage marketing bots, or mortgage company employees that just copy and paste; hysterical about the market sell off, (which has already started gaining again) going nuts about "falling rates". Here's what is really going to happen:

Regarding interest rates; they are like gas prices. Quick to go up, very slow to come down. I expect a less than a tenth of a percent dip in treasuries and that might translate into maybe a .125 dip, but it will recover quickly.

Today would be good to lock, but by next week it will be as if it never happened.

What goes up...

A quick word to preempt the people who will soon begin to scream about "the market".

The market is doing exactly what healthy markets should do: They go up... they are going to come down a little as people take profits. Then they go back up again.

The only time this didn't happen was when the government manipulated the natural state of things in the early 2000s and remember what happened then?

CNBC reprint: Home Prices at near highs. Here we go again?

Home prices surge to new high, up 6.2% in November

  • The supply crisis in the housing market is not letting up, and neither are the home price gains.
  • National home prices rose 6.2 percent annually on S&P CoreLogic Case-Shiller's most broad survey.
  • Another S&P index of the nation's 20 largest housing markets showed a 6.4 percent gain, higher than analysts had expected.

Diana Olick | @DianaOlick

Published 5 Hours Ago Updated 17 Mins Ago CNBC.com

 

The supply crisis in the housing market is not letting up, and consequently neither are the gains in home values.

National home prices continued their run higher in November, rising 6.2 percent annually on S&P CoreLogic Case-Shiller's most broad survey, up from 6.1 percent in October. Another S&P index of the nation's 20 largest housing markets showed a 6.4 percent gain, higher than analysts had expected.

Prices nationally are now 6 percent higher than their 2006 peak, while those in the top 20 markets are still 1.1 percent lower.

"Home prices continue to rise three times faster than the rate of inflation," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

Blitzer blames the continued lack of supply for the price gains, citing a very slow recovery in the home construction market. Home builders are ramping up production but are still not at even historically normal levels, never mind the huge pent-up demand in the market.

"Without more supply, home prices may continue to substantially outpace inflation," added Blitzer

Local metropolitan markets seeing the highest gains are those that were rising fastest before the financial crisis. San Diego, Los Angeles, and Las Vegas continue to see strong gains. Seattle and San Francisco are seeing the highest gains of all, due to strong employment and very tight supply in both those markets.

Home prices in November were still benefiting from very low mortgage interest rates, but that is no longer the case. Mortgage rates are up dramatically since the start of this year, making housing less affordable. That could put downward pressure on home prices during the spring market, especially compounded by new tax laws that limit the deductions for property taxes and mortgage interest.

Prices are unlikely to ease by much, however, given the still very short supply of homes for sale. The simple rules of low supply and high demand will serve as a strong contender against higher rates, as bidding wars will likely be less the exception and more the rule in the upcoming spring market.

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The Final Walkthrough.

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Completing Your Final Walk-Through

You put a lot of effort into finding the right house, and now that your closing is just days away, you're finally ready to start calling your new place home. Before this can happen, however, you should do a final walk-through of the property. 

What is a final walk-through? 
A final walk-through isn't a home inspection (that typically takes place in conjunction with your offer). It's not the time to request new repairs, either. Instead, this is an opportunity to make sure the condition of the home is as expected. Specifically, you'll want to confirm there haven't been any unexpected or unwanted changesmade to the property. 

What should you look for? 
Make sure there isn't any move-out damage and that all your requested repairs have been made. You'll also want to check that no extra furnishings have been left behind and that everything included in the home price -- items like appliances, light fixtures or window blinds -- are in place and in good condition. Use a checklist to guide you through this process.

When does it take place? 
The final walk-through can happen anywhere from a few days prior to your closing to just a few hours before.

Finally, be sure to bring a copy of your contract along for reference and consider asking your real estate agent or a home inspector to help you double-check everything and verify repairs. Remember, this is your last chance to give the property a good once-over before you legally claim it as your own.

Learning from Starbucks....

Sometimes we need to look for wisdom anywhere we find it. I was speaking to a Starbucks's corporate person recently and she shared with me their problem-solving matrix they call "LATTE". It stands for:

-Listen to the problem

-Acknowledge that it is valid

-Take Action (solve the problem)

-Thank the customer (client)

-Explain what happened so they understand

 

That was pretty good, I thought.

Warrantable vs. Unwarrantable Condos.

Are you contemplating buying a condominium in Florida?  The first thing you will need to determine is whether you are buying a “Warrantable” or “Non- Warrantable” Condo.

Conventional Mortgage Rules for Condos

The majority of home buyers use what's known as "conventional" mortgage financing. This means that their loan is backed by one of two government entities -- Fannie Mae or Freddie Mac -- and that the loan meets the two group's minimum standards.

With respect to condominiums, Fannie Mae and Freddie Mac use the term "warrantable" to describe condominium projects that meet their criteria. Condo projects and properties which don't meet Fannie Mae and Freddie Mac warrantability standards are known as “non-warrantable”. Non-warrantable condos can sometimes be more challenging to finance.

Typically, a condo is considered warrantable if:

  • No single entity owns more than 10% of the units in a project, including the developer
  • At least 51% of the units are owner-occupied
  • Fewer than 15% of the units are in arrears with their association dues
  • There is no litigation in which the homeowner’s association (HOA) is named
  • Commercial space accounts are 25 percent or less of the total building square footage

Because of these rules, some of the common property types which fall into the non-warrantable category include condotels, time shares, fractional ownership properties, and other projects which require owners to join an organization, such as a golf club.

Mortgages for Non-Warrantable Condos

For buyers of non-warrantable condos, mortgage financing can be more of a challenge. There are fewer lenders available from which to get a loan. In general, a condo or co-op unit is considered non-warrantable if it shows any of the following characteristics:

  • It's in a project which has yet to be completed
  • It's in a project for which the developer has not turned over control of the HOA
  • It's in a project which allows for short-term rentals
  • It's in a project where one person owns more than 10% of all units
  • It's in a project where the majority of units are "rentals"

In addition, a condo unit in a project involved in litigation of any kind will typically be given "non-warrantable" status. This is true regardless of whether the building is suing another party, or is the party being sued. Non-warrantable condo financing is unavailable via Fannie Mae and Freddie Mac.