Rising Rate Blues?

I keep hearing complaints and FEAR in the marketplace announcing so many people won’t be able to buy a home because rates are going to be so high.

Well, I say Fooey on those Nay Sayers…I know I can’t believe I just said that either…Anyways, You are the voice of Reason for your clients. Let’s have a Reason to celebrate with our clients. Rates are at historic lows. Get rid of the PANIC!

If FEAR is stopping them from committing to the fulfillment of their dreams, let me ARM you for battle today! Take a look at this chart showing rates since 1975. Ask your clients if they would like to chose a rate somewhere in the past 33 years rather than today’s rate…8 years ago, people were excited about 8% interest rates. When I started college in the early 1990’s 10% was AWESOME! When I started Junior High, 14% was a steal! Let’s get real here.

It’s time to stand in the GAP and Aquire the “Insider Information” to Dispel your Client’s FEAR as their voice of Reason!

I hope this is helpful as you work to gain your client’s confidence in Today’s changing marketplace. May God Bless you in your efforts.

Know that I have time for you and your clients to help with any mortgage financing needs. Have an Outstanding Day!

Warmest Regards!

Joshua

Gas Prices Got You Down?

Have you ever heard the saying, "You never really know what you have until it's gone?"

I don't know about you, but lately, all I hear is Increasing Foreclosures, Higher Gas Prices, Grain and Produce price increases, Inflation, Inflation, Inflation...ENOUGH!

I can't even beging to tell you how old this record is becoming. What happened to the hit singles like, "Livin the Vida Loca" or "The Rainbow Connection". Good Night I think Kermit was really on to something with "Lovers, Dreamers, and Me..." Where is the good news? Are you sick of it? I am.

Let's get real for a minute. I don't need the media to tell me Gas Prices are going up or my Veggie Pack is costing more. My family and I are feeling it, just like yours I'm sure. I am a worrier. Ask my wife of 10 years.

So what can we do about it?

In my prayer this morning, God revealed to me that I need to stop focusing on what I don't have and look at the possibilities of what I have in front of me. I was amazed at how quickly this afternoon I started to see solutions rather than problems.

What are the solutions? Well, that my friend is up to you and the creative mind God has given you. Your thoughts are the energy driving any forward progress in your life.

Think about what you don't have and guess what? You'll continue to be in want.

Think of what you have offering Gratitude to the Lord, and more will come.

Study your thoughts. If you play the blame game that all of your problems are someone else's fault, then you are in big trouble my friend. Things outside of your control will always be outside of your control. Your negative thoughts about them won't make them different.

If you focus on only what you have control over in your life like your thoughts and choices, then you will realize that all you need to do is make different choices to change the outlook of your future.

Keep your head up. The solution to your problem lies within your heart! Aim high and don't let anyone talk you out of the desires of your heart!

have a great weekend.

Joshua

College Planning...529 or Real Estate?

Good afternoon,

An interesting thing occurred to me this week in talking with a few of my clients.

Have you ever considered how to fund the rising cost of college for your children's education? Last night, I was posed this question, "No one funded my college. Is it wrong for me to make my children fund their own college?"

Wow! That is a big question. One worth looking into.

There really is no right or wrong way to plan for our children's educational costs in the future. There are only many different choices. For example the Buzz word for College Funding these days is the 529 Plan offered by many financial advisors across America. I have many friends invested in these plans for their children's future education. Congratulations to them for taking action.

The 529 plan is simple. Save a set amount with tax free growth as long as the money is used for education costs. You get the tax deduction on the front side and grow the fund tax free for all intensive purposes. Similar to the old traditional IRA set up for our retirement. This is very easy to set up and beneficiaries can be changed any time if your child does not use the money themselves.

In this type of funding plan, a person can set up monthly allotments that can be automatically invested without having to think about it. Very nice feature. The investment is tied directly to the stock market in the vehicle of your choosing. If you have the stomach for the up's and downs of the market, this is a great vehicle for you.

Example: You have $2000 today and your child is 3 years old. You've got 15 years until the money will be needed. You have an extra $150 per month you can invest. With an 8% return on your investment, this account will grow to $58,520 over the next 15 years. Estimates show that a year of college in 15 years will escalate to $30,000+ per year for a state school. There is a gap and need for other types of funding to help with this rising cost.

Another option for funding education costs is Real Estate. Take for example a $200,000 home today that can rent for $1,250-1,500 per month near the university. A mortgage lender will require a 10% investment of $20,000 to buy the home. Over the next 15 years the same $200,000 home with a $180,000 loan will appreciate using 6% to $490,800. The mortgage balance (paid by the renter) is $132,000 leaving a net equity of $358,800. It is quite a difference from the other plan.

Neither plan is right or wrong. Keep in mind that with Real Estate comes other responsibilities, so it may or may not be right for you to help fund your child's education. It is meerly an option to consider.

If you would like to sit down to look at your personal scenario, please feel free to call me to schedule a time. 505-884-8600.

Have a great day!
Joshua

BE - DO - HAVE

I've been reading The Cash Flow Quadrant by Robert Kiyosaki lately. In his book and in most of his teaching, Robert addresses the issue of how we think about money in a variety of different ways. I've heard this analolgy used a few different times, but I think it is very important to bring up here.

It is a very simple idea called BE - DO - HAVE

Think about it like this. As human BEings, we live in a society and world where competition and keeping up with the Joneses is so important. The Joneses HAVE the house, the cars, the job, the toys, and etc. that we so badly want, so we invite them over for dinner to find out how they acheived this great success. Now we know what we need to DO to get what we want to HAVE, right?

So why is it that when we DO all the "right" things, we still don't HAVE the Joneses success? Well the one thing the Joneses may not have told you is that you have to have the right mind set about what you want. This is the BE part. It is the most important part that is missing most often. Therefore, we become a great culture of human DOers rather than human BEings.

Think about all of the great athletes you've known in your time. They all say that they "saw" the victory before they competed. What about you? Do you have a long term vision of success?

See, acquiring great wealth is a matter of thinking and seeing things differently than the DOers in our world. Amazingly enough, I am at the begining of Seeing more clearly for the first time.

Can you relate? Questions like: I'm smarter than him, why can't I get the breaks he gets? I've got my degree, but why does the guy who barely finished high school make more than me? It's not fair! I work hard, why can't I seem to get ahead?

The difference is not so much in what you do, it is in how you think about what you do. See, your thoughts are very powerful and will ultimately determine your actions. You can't determine any kind of action without first thinking about it. Think about that for a minute...LOL...

We have clearly exited the Industrial Age and entered into the Information Age. In the Industrial Age, hard work was key to long term success. Today, Information is key to long term success. The rules have changed! Have you?

My suggestion to you is quite simple. Get a new education. Find mentors who are living the way you want to live and learn how they think so you'll know how they did it. Read Books. Go to seminars and learn from people who have been there.

A good friend of mine told me yesterday it's like Fly Fishing. Why would you stand in the rapids, the busiest part of the river where you can't see the fish, when you can follow the stream down to the calmer pools of water where the fish are hanging out. It's all about knowing how to think or you'll spend a lot of time in the Raging Rapids not getting anywhere quickly and wearing yourself out doing it.

If you'd like to discuss this in more detail, please call me 505-250-1944.

Buy or Remodel?

So lately, the mortgage industry has been a bit unstable and volatile in lending standards and guidelines. People who work in the industry can't give a straight answer anymore about what lenders will or will not do. When I take a loan application these days, we have a moving target that we're shooting for to acquire loan funding.

So where does that leave us?

Have you been to Home Depot or Lowes lately? The last few weekends as I've gone over, the places are packed. My neighborhood has truckloads of lumber, roofers, and contractors running all over the place.

A couple of years ago people were selling their homes and moving up to bigger homes. With the mortgage and real estate markets the way they are currently, many people have chosen to remodel thier existing homes to weather the storm.

What are some things to consider?
1. Why are you considering selling/buying? Is your family growing, so you need more space? Is your job relocating you? Are you facing divorce or medical problems? Whatever the reason, be sure to weigh this carefully.

2. Do you have a home to sell before moving? Go back to question 1 and decide if selling right now is the best option. If it is, be sure to work with a reputable Realtor to help you market your home. Do not try to do this on your own in our current market. Statistics show that "For Sale by Owner" homes sell about 10% below what they should and take longer to do so. Be realistic in your asking price. If you're basing your price on the other homes in the neighborhood, chances are you are priced too high just like them.

3. What is your budget? Most of the people I know who go into purchasing a new home or remodeling start their desired project without a budget in mind. They "wing" it. Thousands of dollars are lost in this process. Give yourself a solid plan before running to Home Depot.

4. Do you know how to do the work? Sometimes doing the work can be a lot of fun, but if you don't know how to do it, you'll have to hire a contractor who will charge you double to triple the cost. Can you recoup this cost if you sell next year? If not, perhaps selling at a slightly reduced price will allow you to move to a home with the desired features you're looking for.

So, whether you are going to buy or remodel, keep these four simple truths close to you when making the decision. It is a fantastic time to buy a new home if you consider everything is on sale! In Real Estate, this really is the most affordable time to buy.

Have a plan. Talk to your advisers who can help you make the decision that is right for you and your family.

Good luck! Call me if you have any questions. 505-884-8600

Joshua

Consider the Ant? What does it mean?

Many of us have heard of King Soloman, the Richest Man ever to live. If you haven't, there are countless movies and t.v. mini-series dedicated to finding his lost mines.

During his lifetime, King Soloman amassed the greatest fortune and treasures known to man. Well, he also disclosed how he did it in the Ancient text of Proverbs. In the sixth chapter, he references the Ant. Let's review...

"Go to the Ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores up its provisions in summer and gathers its food at harvest." - PR 6:6-8

So, if you consider this text, King Soloman is telling us the way to amass a fortune through simple observations of the ant. Silly, yes, but true, Oh yes my friend.

What are some of the observations we can make about the ant that are applicable to our lives?
1. The Ant is the opposite of a Sluggard - Curious about a sluggard, read in the text a bit further and the King so eloquently describes the tendancy of the sluggard.

2. The Ant is wise. This assumes that the sluggard is not so wise.

3. It has no commander / overseer - This is a big one. What do you do with your spare time? T.V., X-Box, Sleep, play sports, etc.? Robert Kiyosaki's Rich Dad shared the biggest difference between the rich and the poor is what they do in their spare time. The Rich use their spare time to educate them selves on opportunities to earn more money or to keep more money than they pay out. They educate themselves on ways to save on taxes, to invest in Real Estate, to create stock vs. buy stock. No one tells them to do this, it is just what they do, as do the ants.

You might take this a bit further to consider that most of the Rich are self employed in some fashion or they work on a commission basis. Many of the poor look for security in working for someone else who is ultimately their ruler or overseer. Now I am not telling you to quit your job to become self employed. What I am saying is that even if you are employed, you can educate yourself on how to find security outside of the job.

4. It gathers provisions for harvest time. Do you realize that we are facing one of the biggest generational transitions in American History today? Baby Boomers are the largest generation to retire in our country. Guess what? Many of them are not prepared for the Harvest. They did not gather properly and store up enough provisions so they are scrambling. What types of things are you doing to store your provisions or ensure that you have provisions during your harvest?

I am very excited about Consider the Ant. I am working Diligently on completing the book by Summer of 2008. I appreciate your support and hope this has been helpful.

If you would like to discuss these things in more depth, please feel free to contact me directly at 505-250-1944 or jchristensen2901@gmail.com.

Have a great day!
Joshua

Foreclosures…Credit Crisis…Mortgage Woes…

Are you sick and tired of hearing all of this? I am. Does it just make you mad that so many people are “losing” their homes. I can’t tell you the emotions that are roused by people in the Real Estate Industry as well as people outside the industry who are so angry that this has happened...

Funny thing about it. The same people 2 years ago were bragging about how amazing real estate investing is and how important home ownership is. A couple of years ago, anyone could buy a home. Lenders biggest requirement was that a person could “fog a mirror”! Hello! Well today, the same lenders are requiring a reflection in the same mirror. Guidelines are tougher and understandably so. They gave away the bank and now the price has to be paid for their wild speculation for working with buyers that couldn’t qualify. They lowered their standards to capitalize on Wall Street’s unquenchable desire for “easy money”. The alarms have sounded, I can hear my mother, “Wakey Wakey, it’s time for eggs and Bakey!” So now what?

Here’s the deal. Take a deep breath. Relax for a moment and let’s look at the facts in the matter.

I received a report last week that was a great relief to me here in New Mexico. Of all the states, counties, cities and neighborhoods in the United States, the Albuquerque Market had some of the best appreciation in the country. As a Metropolitan Statistical Area (MSA), which includes Albuquerque, Rio Rancho, Placitas, Los Lunas, etc., our total area appreciation in 2007 was 7.5%! Wow~! That does not sound like the Doom and Gloom the media is portraying.
Slow down before you get too excited. There are many sellers out there right now that are marking their homes incredibly high in their neighborhoods causing Realtors to reduce home prices on their listings. If you’re going to sell, trust the Professional Realtor you are paying for. Trust me. Realtors will sell your home for as much as they possibly can. They are on commission after all. So, if your Realtor suggests that the price point you are choosing as a seller is too high, listen close! They know what it takes to sell your home.

Another great stat I received the other day was about where New Mexico ranks in Foreclosures. The state only has a .3% (yes that is 1/3 of a percent) rate of foreclosures. That number is down over 25% from Jan. 08 back to Jan 07. Times are fine.

Another important fact is Buying Real Estate these days! It is not the time to be waiting for a deal. The deals are all out there. Consider it a Clearance Rack at Macy’s. Prices were high, now they are low. If you or someone you know is in the market to buy, Don’t miss this sale. Now is the time to buy Real Estate! By this time next year, the sale will be over.

If I can be of any help to you, please don’t hesitate to call me. 505-884-8600