Mortgage Loan Market Commentary 4-14-08
April 14, 2008
Volatile Rates In Store This Week
This week brings us the release of seven relevant economic reports for the bond market to digest. We are also heading into corporate earnings season which could lead to fluctuations in the stock markets. If earnings come in lighter than estimates, the stock markets may fall, leading to an influx of funds into bonds. But, if earnings and forecasts are strong, the major stock indexes may rally, pulling funds from bonds and leading to higher mortgage rates. Some of the most influential companies don’t report quarterly earnings for a few more weeks, but the early releases could affect optimism about what those big named companies’ earnings will show.
The first important report comes early tomorrow morning when the Commerce Department will release March’s Retail Sales data. This gives us a measurement there’s more to this »
Posted by CSH at 12:17pm
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Create Personal Wealth Beyond Your Small Business, Part 4
April 14, 2008
Amortization: Your Enemy; The Banker’s Friend
I have to digress a bit to property cover the next aspect of Small Business Wealth Creation. I want to show you the detrimental effects of loan amortization, how lenders benefit from it, and give you a strategy to “turn the tables” on your lender.
One of the greatest financial inventions is “compound interest.” Albert Einstein is said to have called compound interest: “The eighth wonder of the world! Those who understand it profit from those who do not.” I can not verify the source of the quote, but whoever it said it was dead right. Let’s examine amortization and how you can turn the tables on your lenders.
When The “Lowest Rate” Is More Expensive
You see, amortized loans were created by bankers and are structured so that the payments made in the early years (according to the amortization schedule) go primarily there’s more to this »
Posted by CSH at 12:09pm
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Mortgage Loan Market Commentary 1-7-08
January 08, 2008
Stock Markets In The Driver’s Seat
Monday’s bond market has opened relatively flat with no economic news scheduled for release this morning. The stock markets are showing modest gains with the Dow up 31 points and the Nasdaq up 2 points. The bond market is currently up 2/32, which will likely keep this morning’s mortgage rates at Friday’s levels.
This week brings us the release of only one piece of semi-relevant monthly economic data however, we will also get the weekly unemployment claims. It usually has little impact on bond trading and thus, mortgage rates. Therefore, the stock markets
Posted by CSH at 8:33am
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Create Personal Wealth Beyond Your Small Business, Part 3
January 07, 2008
The Small Business Real Estate Wealth Building Strategy
Thus far I have been talking about the advantageous financing that a small business person can access to acquire real estate for business use. Before doing so, you have to be sure that it makes sense to own your business location, rather than lease it. Let’s look at the reasons for buying business-occupied real estate versus leasing.
Reason 1: Control
When you own the location for your business you have a greater degree of control over what you can do with the space. In lease situations, you always have a landlord who is concerned with the condition and state of the property who may attempt to limit your use.
Reason 2: Diversification
The business real estate is a separate asset from the business itself. In purchasing the building, you have automatically there’s more to this »
Posted by CSH at 9:55am
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Mortgage Loan Market Commentary
November 12, 2007
WATCH OUT FOR WEDNESDAY
This week brings us the release of four monthly reports for the markets to digest. The first two will come Wednesday morning with the release of October’s Producer Price Index (PPI) and Retail Sales figures. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used: The overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices.
If it reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, the bond market should there’s more to this »
Posted by CSH at 9:43am
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Create Personal Wealth Beyond Your Small Business, Part 2
November 09, 2007
As a small business owner contemplates the shift from leasing to owning, and thereby takes the initial steps to build wealth outside of his or her business, the question of how much building can be purchased comes up. In the previous article on this subject (”Create Wealth Outside Of Your Small Business, Part 1“), I covered the most extensively used financing options: The Small Business Administration’s “7a” and “504” programs.
There are other ways to finance that building purchase, although perhaps not as effective. To completely cover the topic, I would like to briefly describe a couple of other options: “Conventional” commercial and small business real estate financing.
Conventional Commercial Real Estate Loans
This is what would be considered “traditional” commercial real estate financing and offers a small business owner there’s more to this »
Posted by CSH at 1:40pm
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Create Personal Wealth Beyond Your Small Business, Part 1
October 31, 2007
You know the story: Small time entrepreneur starts a business in his garage and almost overnight takes the company public to dominate an industry. O.K. so this is the exception and not the rule. Most small business owners probably have different motivations for starting their businesses, but the majority will probably include building wealth as one of the reasons for doing so. However, most small business owners miss an amazing opportunity to use their businesses to grow their personal wealth outside of their normal business activities.
The owner of a small business is usually focused on the day to day activities of keeping his or her business running or growing: Sales, accounting, collections, inventory, etc. Some have aspirations of becoming wealthy, yet most settle into a daily routine that lacks the focus necessary to truly develop wealth.
However, even these average business owners can start on a path to true wealth building that still involves their businesses, but creates this wealth because of the business, not through doing business. In fact, the wealth creation there’s more to this »
Posted by CSH at 2:25pm
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Mortgage Loan Market Commentary
October 31, 2007
BERNANKE TO THE RESCUE
Today’s FOMC adjournment brought us the one-quarter point rate cut that was expected by many, but the post-meeting statement created concern about inflation. The Fed referenced the weak housing market as a contributing factor to the change in short-term interest rates, but also indicated that inflation remains an issue, particularly with the current high energy and oil prices.
The move and comments lead many to believe that the Fed will not make another rate cut in the near future. The stock markets have surprisingly reacted well to the news with the Dow up 131 points and the Nasdaq gaining 35 points. However, the bond market and there’s more to this »
Posted by CSH at 2:23pm
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Mortgage Loan Market Commentary
October 22, 2007
THE MARKET HOLDS ITS BREATH …
Tuesday’s bond market has opened flat despite weaker than expected economic news and early stock losses. The stock markets are in negative territory with the Dow down 45 points and the Nasdaq down 3 points. The bond market is currently nearly unchanged from yesterday’s closing levels, which should keep this morning’s mortgage rates unchanged.
The Conference Board said this morning that their Consumer Confidence Index (CCI) for October fell to 95.6. This was much lower than was expected and indicates that consumers felt much less confident in their own financial situations than many had thought. This is good news for bonds and there’s more to this »
Posted by CSH at 8:31am
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Managing Multiple Property Exchanges, Part 2
June 19, 2007
This represents the second part of our first “guest authored” article at the Investment Property Insider. This article was written by Lance Newton, with Bayview Financial Exchange Services, on the topic of Multiple Property Exchanges.
1031 Exchange Planning – Multiple Property Exchanges by Lance W. Newton
When separate exchanges for each relinquished property are used for Consolidation into one property, the identification statement from each separate exchange should identify the appropriate fractional interest that can be purchased with the proceeds of each exchange. You really should use a CPA to calculate verify the numbers in these types of exchanges. The separate exchange arrangements should be acknowledged in all of your sale, escrow, title and financing arrangements for each property.
There are a couple of techniques that multiple property exchangers can use to maximize the results of selling exchange properties.
1. Delay the closing on the first relinquished property, to allow there’s more to this »
Posted by CSH at 9:31am
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