David E. Johnson PE

Week of the Top 10 Reasons to Buy a Home

2012-02-13T07:32:00.000-05:00

The Wall Street Journal printed an article on the ten reasons to buy a home. I thought it would be worthwhile and advantageous for those people sitting on the fence to elaborate on each point made by the WSJ.

1. You can get a good deal.

Houses on the market or inventory are starting to dissipate but it remains a buyer’s market. The first half of 2012 may be the last “best opportunity” – at least for this decade to buy a home when everything is aligned in favor of the buyer. The supply of lower priced homes has significantly dropped and this segment of the market is turning towards a seller’s market.

2. Mortgages are cheap.

Mortgage interest rates have been historically low for the past two years. Many experts continue to predict that interest rates may increase starting in 2012. The house you would consider buying today will COST you more on a monthly basis if you wait later in the year. The rise in mortgage interest rates will have a greater impact on your monthly budget than the benefits of waiting for another sales price drop – if there is one.

Please pass this blog post to someone you know that may be considering buying a home in 2012.

2012-02-10T07:44:00.000-05:00

Enough said.

2012-02-09T07:32:00.000-05:00

The Law of Supply and Demand. Currently there is an ample supply of homes on the market. With the shadow inventory and the lack of demand, what will prices do? The good thing is that real estate is governed by local markets and not national trends. The bad is that the vicious cycle continues.

As housing goes.........................so goes the economy.

2012-02-08T07:33:00.000-05:00

Appraised Values Under the Negotiated Price --- driven mostly by foreclosures and short sales influencing the appraisal. Until the vicious cycle is broken, home values will continue to fall. And as home values fall, homeowner equity continues to erode. Families can't move out of their home that is underwater even if they have a job and even with 4% interest rates.

As Housing goes....................So goes the Economy

Mortgage Rates

2012-02-07T08:08:00.000-05:00

With the lowest mortgage rates on record,
SO......................why were single family housing starts the lowest on record in 2011?
SO......................why were existing home sales consistently at a low level throughout 2011?

FEAR!
As housing goes...............so goes the economy

Week Of Real Estate Graphs & Charts

2012-02-06T10:40:00.000-05:00

If you or if you know of someone that is interested in buying a home (single family detached, condominium or townhome), please have them contact a mortgage representative to calculate the price of the home that would give you a monthly mortgage payment less than your rent.
When there is no cost or commitment to find out the answer, why wouldn't you at least ask?

How To Fix Your Credit

2012-02-02T07:34:00.002-05:00

1. Get a credit card if you don't have one

Don't fall for the myth that you have to carry a balance to have good scores. You don't, and you shouldn't. But having and using a credit card or two can really build your scores.

If you can't qualify for a regular credit card, consider a secured credit card, where the issuing bank gives you a credit line equal to the deposit you make. Look for a card that reports to all three credit bureaus.

2. Add an installment loan to the mix

You'll get the fastest improvement in your scores if you show you're responsible with both major kinds of credit: revolving (credit cards) and installment (personal loans, auto, mortgages and student loans

If you don't already have an installment loan on your credit reports, consider adding a small personal loan that you can pay back over time. Again, you'll want the loan to be reported to all three bureaus, and you'll probably get the best deal from a community bank or credit union.

3. Pay down your credit cards

Paying off your installment loans (mortgage, auto, student, etc.) can help your scores but typically not as dramatically as paying down -- or paying off -- revolving accounts such as credit cards.

Lenders like to see a big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help; getting balances below 10% is even better.

Though most debt gurus recommend paying off the highest-rate card first, a better strategy here is to pay down the cards that are closest to their limits.

4. Use your cards lightly

Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. What's typically reported to the credit bureaus, and thus calculated into your scores, are the balances reported on your last statements.

You often can increase your scores by limiting your charges to 30% or less of a card's limit; 10% is even better. If you're having trouble keeping track, you can set up email or text alerts with your credit card companies to let you know when you're approaching a limit you've set. If you regularly use more than half your limit on a card, consider using other cards to ease the load or try making a payment before the statement closing date to reduce the balance that's reported to the bureaus. Just be sure to make a second payment between the closing date and the due date, so you don't get reported as late.

5. Check your limits

Your scores might be artificially depressed if your lender is showing a lower limit than you actually have. Most credit card issuers will quickly update this information if you ask.

If your issuer makes it a policy not to report consumers' limits, however -- as is sometimes the case with "no preset spending limit" cards -- the bureaus may use your highest balance as a proxy for your credit limit.

You may see the problem here: If you consistently charge the same amount each month -- say, $2,000 to $2,500 -- it may look to the credit-scoring formula like you're regularly maxing out that card.

If you have an American Express charge card -- the kind that must be paid in full every month, rather than the kind on which you carry a balance -- you probably don't have to worry, because charge cards typically aren't included in the credit utilization portion of the FICO formula.

If, however, the card is categorized on your credit reports not as a charge card but as a revolving credit card, and either a credit limit or high balance is reported to the bureaus, your balances on the card could be a problem.

You could go on a wild spending spree to raise the high balance reported to the credit bureaus, but a more sober solution would simply be to pay your balance down or off before your statement period closes.

6. Dust off an old card

The older your credit history, the better. But if you stop using your oldest cards, the issuers may decide to close the accounts or stop updating them to the credit bureaus. The accounts may still appear, but they won't be given as much weight in the credit-scoring formula as your active accounts, said Craig Watts, an executive at Fair Isaac, the company that created the FICO score.

So you might want to charge a recurring bill to one of those little-used accounts or take them out for dinner and a movie occasionally -- always, of course, paying off the balance in full.

7. Get some goodwill

If you've been a good customer, a lender might agree to simply erase that one late payment from your credit history. You usually have to make the request in writing, and your chances for a "goodwill adjustment" improve the better your record with the company (and the better your credit in general). But it can't hurt to ask.

A longer-term solution for more-troubled accounts is to ask that they be "re-aged." If the account is still open, the lender might erase previous delinquencies if you make a series of 12 or so on-time payments.

8. Dispute old negatives

Say that fight with your phone company over an unfair bill a few years ago resulted in a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as "not mine." The older and smaller a collection account, the more likely the collection agency won't bother to verify it when the credit bureau investigates your dispute.

Some consumers also have had luck disputing old items with a lender that has merged with another company, which can leave lender records a real mess.

9. Blitz significant errors

Your credit scores are calculated based on the information in your credit reports, so certain errors there can really cost you. But not everything that's reported in your files matters to your scores.

Here's the stuff that's usually worth the effort of correcting with the bureaus:

• Late payments, charge-offs, collections or other negative items that aren't yours.

• Credit limits reported as lower than they actually are.

• Accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full.

• Accounts that are still listed as unpaid that were included in a bankruptcy.

• Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your reports.

You actually have to be a bit careful with this last one, because sometimes scores actually go down when bad items fall off your reports. It's a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict.

Some of the stuff that you typically shouldn't worry about includes:

• Various misspellings of your name.

• Outdated or incorrect address information.

• An old employer listed as current.

• Most inquiries.

If the misspelled name or incorrect address is because of identity theft or because your file has been mixed up with someone else's, that should be obvious when you look at your accounts. You'll see delinquencies or accounts that aren't yours and should report that immediately. However, if it's just a goof by the credit bureau or one of the companies reporting to it, it's usually not worth sweating.

• Accounts you closed listed as being open.

• Accounts you closed that don't say "closed by consumer."

Closing an account can't help your scores and may hurt them. If your goal is boosting your scores, leave these alone. Once an account has been closed, though, it doesn't matter to the scoring formulas who did it -- you or the lender. If you messed up the account, it will be obvious from the late payments and other derogatory information included in the file.

4 common credit mistakes

Other actions to beware when you're trying to improve your scores:

• Asking a creditor to lower your credit limits. This will reduce that all-important gap between your balances and your available credit, which could hurt your scores. If a lender asks you to close an account or get a limit lowered as a condition for getting a loan, you might have to do it -- but don't do so without being asked.

• Making a late payment. The irony here is that a late or missed payment will hurt good scores more than bad ones, dropping 700-plus scores by 100 points or more. If you've already got a string of negative items on your credit reports, one more won't have a big impact, but it's still something you want to avoid if you're trying to improve your scores.

• Consolidating your accounts. Applying for a new account can ding your scores. So, too, can transferring balances from a high-limit card to a lower-limit one or concentrating all or most of your credit-card balances onto a single card. In general, it's better to have smaller balances on a few cards than a big balance on one.

• Applying for new credit if you already have plenty. On the other hand, applying for and getting an installment loan can help your scores if you don't have any installment accounts or you're trying to recover from a credit disaster such as bankruptcy.

GDP REPORT

2012-01-31T07:57:00.000-05:00

2nd quarter 2009                 - 0.7%

3rd quarter 2009                   2.2%

4th quarter 2009                   5.6%

1st quarter 2010                    2.7%

2nd quarter 2010                  1.7%

3rd quarter 2010                   2.6%

4th quarter 2010                   3.1%

1st quarter 2011                   0.4%

2nd quarter 2011                  1.3%

3rd quarter 2011                  1.8%

4rd quarter 2011            Advance Estimate        2.8%

                                      Second Estimate         2/29/12

                                     Third Estimate             3/29/12

By the way, the advance estimate for the 3rd quarter of 2011 was 2.5%. The economy is in a slow painful jobless recovery that will not pick-up real momentum until after the election.

As housing goes …. So goes the economy!

LINKEDIN DAY 5

2012-01-30T06:26:00.002-05:00

GAIN CREDIBILITY AS AN EXPERT

LinkedIn is a professional networking site which spans around the world. It is a rolodex of people you do not know but have the ability to connect with. The idea is to illustrate why other professionals want to connect with you. Your approach to LinkedIn and your professionalism will speak volumes. Give rather than get. Become active in groups by posting discussion items. More importantly however is for you to read other posts. Provide expert and insightful input. These posts are on public display. Many professionals overdue their welcome and become self-serving. Stay away from those professionals.

Also, go to the “Answer” section and join in by asking relevant questions and / or providing answers to posted questions.

Action: Select one of your groups and post a discussion item on something of interest to the group. Do not market you or your services! Become a Trusted Advisor! In another group, find a discussion item which you can respond and offer advice. Become a “go-to” professional.

LINKEDIN DAY 4

2012-01-27T07:01:00.004-05:00

GATHER & SHOWCASE RECOMMENDATIONS

Review your profile constantly to ensure it is updated and make changes as necessary. Many of your connections follow you and profile changes or updates will show up on their home page. This is a good way to stay linked without a direct contact. Another way for your profile to gain exposure is to recommend other professionals and for your contacts to offer a recommendation for you. This should be a long term process and not just a thought for the day!

Action: This week, ask one of your close connections to provide you with a recommendation. Go to your profile page – upper right you will see a link “Ask for A Recommendation”. You are asking for an endorsement which will appear on your profile. As well as providing a recommendation for a close associate.

LINKEDIN DAY 3

2012-01-26T07:23:00.000-05:00

ORGANIZE PROFESSIONAL RELATIONSHIPS

LinkedIn provides a way to connect with professionals, friends, and co-workers. You can easily invite someone to connect and ask a connection for an invitation to connect to one of their contacts. There is a debate whether to limit your connections to high quality connections or connect to all willing to connect. Since your connections can be put into multiple categories for ease of access, I tend to connect with many professionals.

I have over 1,110 connections and each contact is “tagged” into over 20 different categories. Once you connect, you have the opportunity to initiate networking opportunities. Do not forget your connections and periodically contact your “primary” contacts.

Action: This week, build-up your connections by sending 5 professionals invitations to connect. Also, identify 2 current professional contacts and search their contact list. Ask your contact to invite their contact to connect with you – an “invitation to connect”.

LINKEDIN DAY 2

2012-01-25T07:51:00.000-05:00

MANAGE MY PROFESSIONAL BRAND

LinkedIn groups with a professional purpose that match your career goals are much better than other social networking sites. On other sites, you will have to drive people to your group or page. You have the opportunity to voice your thoughts and connect with other members of the group.

Action: On LinkedIn become an ACTIVE member of a group with “like minded” professionals. Join groups with national and local perspectives. Or, if you don’t see a group which reflects your professional niche, start your own group. I started my own group in 2009 and it has over 4,800 members.

A Week of LinkedIn

2012-01-23T07:54:00.000-05:00

Are you on LinkedIn? If NOT, why not?

Did you know these recent LinkedIn statistics…?

• 147 Million members worldwide (96.6 Million in North America and Europe)

• More than 2 Million companies have LinkedIn Company Pages

• Executives representing all 2011 Fortune 500 companies have profiles

• Over 40% of members are a Manager, Director, Owner, Chief Officer or Vice President

• 38% of members earn income over $100K

An article on Fox Business recently listed five reasons you should have a LinkedIn profile.

Note – for 2012, I will carry over one of my 2011 goals: Act rather than react. I will add an action item to each reason to join and use LinkedIn.

1. RESEARCH CAREER OPPORTUNITIES

Without a question, the ability to find job opportunities on LinkedIn has become easier than any other resource. Some companies will post job openings only on LinkedIn. You have the ability to connect with professionals within the companies that are hiring. Also, the number of professional recruiters on LinkedIn has skyrocketed. You can research the company on LinkedIn and in most cases the leadership will have LinkedIn profiles for your review. The HR manager will most likely be on LinkedIn as well.

Action: Find the company you want to work for on LinkedIn and the employees will be listed that are on LinkedIn. Search the profiles of the employees and join the same groups they are members. Invite strategic employees to connect and patiently network.

Live in a State of Gratitude

2012-01-20T06:23:00.000-05:00

86,400 seconds in a day –
How will you use this time today?

Are You An Echo Boomer?

2012-01-19T08:23:00.000-05:00

By Pat Riley
President and Chief Operating Officer
Allen Tate Realtors

Do you dream of owning your own home someday? The pundits want us to believe that your generation – born between 1980 and 1995 – are disenchanted with the dream of homeownership. But I, for one, don’t believe it for a moment, although for the first time in history, you’re not leading the charge in the housing recovery.

Here’s what I have heard and think:

You are concerned about education, leisure and people. They are very important to you at this time in your life.

You have more school debt than any generation prior to you.

You are in a very tight job market.

You are taking longer to settle down and plant roots in one place.

You are delaying having children.

You have limited savings and assets.

With all of these things to consider, many of you are waiting to purchase a home – renting now instead of buying. But renting should only be considered temporary. You will want to own a home that appreciates each year. You will want to be able to deduct interest and taxes. And more importantly, you will want a home to call your own.

The pundits have something new to say every day, especially when it comes to the real estate market and the economy, so it’s not surprising that they want to cast a pall over the dream of homeownership for young people who are simply waiting a bit longer than in past years. The notion that you, the “echo boomers,” are “out on homeownership” could not be further from the truth. Your time will come to become a homeowner, for sure.

A First Time Home Buyer Perspective - Part 2

2012-01-18T11:35:00.000-05:00

Remember these KEY TRUE facts:

4. They want mobility

In most cases, owning a home provides more ability to move than renting an apartment! Although in a buyer’s market, it may take longer to sell your home, you have the flexibility on the pricing and marketing of your home. With an apartment, you will have a year’s lease which is difficult if not impossible to break.

Over the past decade, homeowners moved very 4-5 years. Mobility is not the issue. A sense of community and establishing family “roots” become overriding factors. Homeowners will move within a community and gravitate to a certain school district, a location or a home style. Owning a home does not restrict your mobility.

In a seller’s market, you can sell your home without difficulties if priced right and in good condition. We sold our home in New Jersey in ONE HOUR!

5. Housing industry is not stable

The housing industry and home prices have always been sensitive to changes in the economy. The previous four recessions (2001, 1989, 1991, and 1973) affected housing prices along with other industries. The great recession of 2006 – 2008 was a direct result of housing issues precipitated by government’s lending and financial practices.

I have worked in the housing industry for a long time and housing always recovered from recessionary forces quickly and home appreciated over the long term. Housing is stable over the long term – just like the economy. You have to hang in there during the roller coaster of the economy.

6. Not willing to accept responsibility of owning a home

Owning a home is more than just a financial decision. Accepting responsibility for yourself, your family and your actions is what drives us. If you do not want to accept responsibility and let government control your life, you shouldn’t buy a home! Rent and let someone else dictate to you what you can and can’t do. OR own a home and be a part of the American Dream.

A First Time Home Buyer Perspective - Part 1

2012-01-17T07:00:00.000-05:00

Remember these KEY TRUE facts:

1. Interest rates are at a historic low and history tells us that interest rates will trend up.

The KEY is not to wait for interest rates to increase!

As interest rates increase and if you bought a home with a fixed rate mortgage – your monthly COST WILL NOT increase! Unlike rents which will continue to rise.

As interest rates increase, buying power decreases and you will have to make buying concessions on your home i.e. price, location, features, etc.

We bought a home when we moved from Maryland to Florida and we were lucky at that time with a mortgage at an 18% interest rate!!!!

2. Buyers are waiting for the market to hit bottom

You can’t time the bottom of the market --- on any product or stock.

Can you time the price of gas?

Can you time the price of a car or a flat screen TV?

At least a home will appreciate over time.

Local markets are reacting differently to the economic forces. In North Charlotte, there are many communities which housing prices have already started to trend higher.

This is a buyer’s market --- ample supply at low prices. Sellers are willing to negotiate and even offer closing cost assistance!!

3. Lack of confidence in housing to appreciate in the future

When we moved from Florida to New Jersey, we bought a home and within 2-yrs the price dropped $15,000 (1989 recession). However, 15-yrs later our home appreciated 100%.

If you are buying a house for short term gain, you are an investor and not a homeowner. If you are buying a home for your family and become a valuable citizen of your community, your home will appreciate over time. Most if not all homes increase in price over time. Unlike a car which drops in value once you drive off the car lot, home values will have ups and downs but primarily increase in value over time.

Over 1-Yr Comparison

2012-01-13T07:43:00.002-05:00

By comparing inventory in 2010 to late 2011, it would seem the inventory levels have improved significantly. Spring is always an excellent home selling season so I will post inventory numbers to again compare.

2012-01-12T08:29:00.000-05:00

Land & Land Owners

2012-01-11T07:59:00.000-05:00

I have always said that it is not plastics but LAND! It is all in the land.

Forbes Magazine, March 2011issue listed the top six private landowners in the United States. What do they know that we don’t? Nothing! It is all in the land.

John Malone 2.2 million acres

Ted Turner 2.1 million acres

Red Emmerson 1.72 million acres

Brad Kelley 1.7 million acres

Irving Family 1.2 million acres

Singleton Family 1.1 million acres

Did you know that each of the above listed private land owners own more land area than the area of Rhode Island?

The United States has a total land area of nearly 2.3 billion acres.

Major uses in 2002 were:

Forest-use land, 651 million acres (28.8 percent)

Grassland pasture and range land, 587 million acres (25.9 percent)

Cropland, 442 million acres (19.5 percent)

Special uses (primarily parks and wildlife areas), 297 million acres (13.1 percent)

Miscellaneous other uses, 228 million acres (10.1 percent)

Urban land, 60 million acres (2.6 percent)

Federal and State Governments own about 40% of the 2.3 billion acres and only 2.6% of the land is in urban use. I will try and update the statistics to show you the changes from 2002.

2012-01-10T08:02:00.000-05:00

College Football

2012-01-09T06:37:00.000-05:00

Social Media - Unwritten Rules?

2012-01-06T07:10:00.000-05:00

A post on LinkedIn included the following unwritten rules about social media.

Do you agree or disagree with these rules?

1. Connection does not imply permission

2. Access does not imply entitlement

3. Activity is not productivity

4. More is not better

5. Reciprocation is optional

6. Amplification without accomplishment is futile

7. Engagement without enrichment is not effective

10 REASONS TO HIRE A PROFESSIONAL STAGER

2012-01-05T08:08:00.000-05:00

Guest Blog By:
Jamie McNeilis
Accredited Staging Professional (ASP)
Managing Member / Owner
Centerpiece Home Staging LLC

10. Staged homes tend to sell for more money.

9. Staged homes sell faster than non-staged.

8. Staging costs a fraction of a price reduction.

7. Staging distinguishes you from the competition.

6. Dated furnishings make the home seem dated.

5. Staging improves online marketing efforts.

4. Staged homes more often appraise for full value.

3. Staging helps buyers see themselves living there.

2. A first impression is a lasting impression.

1. In today's market, you can't afford NOT to stage!

Proud Member:International Association of Home Staging Professionals (IAHSP)Charlotte IAHSP Regional Chapter (CIRC) - 2010 Chapter PresidentLake Norman Home Builders Association (LNHBA)Lake Norman Chamber of Commerce View my web site!

www.centerpiecehomestaging.com

Professional Home Staging for a GREAT First Impression!

Personal Note: Jamie staged one of my homes listed in the $500k range and it sold quickly after being on the market for almost 2-yrs. Just like any industry stakeholder, find those professionals that are team members and willing to achieve a goal together. Jamie is creative and is at the top of her profession.

Focus for 2012 - Day 2

2012-01-04T08:14:00.005-05:00

4. Schedule your email.

Pick two or three times during the day when you’re going to use your email. Checking your email constantly throughout the day creates a ton of noise and kills your productivity.

5. Use the phone.

Email isn’t meant for conversations. Don’t reply more than twice to an email. Pick up the phone instead.

6. Work on your own agenda.

Don’t let something else set your day. Most people go right to their emails and start freaking out. You will end up at inbox-zero, but accomplish nothing. After you wake up, drink water so you rehydrate, eat a good breakfast to replenish your glucose, then set prioritized goals for the rest of your day.

7. Work in 60 to 90 minute intervals.

Your brain uses up more glucose than any other bodily activity. Typically you will have spent most of it after 60-90 minutes. (That’s why you feel so burned out after super long meetings.) So take a break: Get up, go for a walk, have a snack, do something completely different to recharge. And yes, that means you need an extra hour for breaks, not including lunch, so if you’re required to get eight hours of work done each day, plan to be there for 9.5-10 hours.

Focus for 2012

2012-01-03T07:08:00.000-05:00

The following post is from Ilya Pozin @ilyaNeverSleeps

He sat down with Tony Wong, a project management blackbelt whose client list includes Toyota, Honda, and Disney, to name a few. He’s an expert in keeping people on task. Ilya discussed Tony’s tips for 2012 in staying productive:

1. Work backwards from goals to milestones to tasks.

Writing “launch company website” at the top of your to-do list is a sure way to make sure you never get it done. Break down the work into smaller and smaller chunks until you have specific tasks that can be accomplished in a few hours or less: Sketch a wireframe, outline an introduction for the homepage video, etc. That’s how you set goals and actually succeed in crossing them off your list.

2. Stop multi-tasking.

No, seriously—stop. Switching from task to task quickly does not work. In fact, changing tasks more than 10 times in a day makes you dumber than being stoned. When you’re stoned, your IQ drops by five points. When you multitask, it drops by an average of 10 points, 15 for men, five for women (yes, men are three times as bad at multitasking than women).

3. Be militant about eliminating distractions.

Lock your door, put a sign up, turn off your phone, texts, email, and instant messaging. In fact, if you know you may sneak a peek at your email, set it to offline mode, or even turn off your Internet connection. Go to a quiet area and focus on completing one task.

2012-01-02T08:17:00.000-05:00

2011-12-30T14:12:00.002-05:00

2012

2011-12-29T08:03:00.000-05:00

2012 will be a benchmark year that will define our own path to personal and professional freedom. We as individuals must take on our own responsibility and that of our family. Let’s make a difference in 2012. Stay true to your own goals but hopefully you will consider some of my goals as reasonable and attainable efforts that will guide you throughout the year.

Have strong Beliefs – know where you are going and where you are headed. It doesn’t matter where you have been – look forward and not back.

Be an Optimist – be a positive role model and find the good in everyone. Appreciate life everyday!

Relentless Preparation – answer the unanticipated, sense of calm with practice. Prepare for the worst and pray for the best.

Invest in Others – be a mentor - assist others without expecting anything in return. In 2011, I expanded my mentorship role and will build upon my willingness to assist others succeed in 2012.

Live in a State of Gratitude – 86,400 seconds in a day – how will you use this time?

Act rather than React – take action. Don’t wait for others to lead. We must lead and take care of others.

Reinvent Yourself by Doing what you Do and Always have Done ---------- Differently!

I listed the above goals for 2012 because this year is a tipping point for most of us. If you don’t approach this year differently, you may be left behind. Rely on yourself but also rely on those willing to share and to assist you succeed.

But most of all -------See through eyes of love and understanding.

Happy New Year!

2012 - A New Year

2011-12-28T07:40:00.000-05:00

2012 – Happy New Year!

REFLECTIONS FOR THE NEW YEAR

(From the writings of Harold Warbeirn)

Because the world is poor and starving,
Go with bread

Because the world is filled with fear,
Go with courage

Because the world is in despair,
Go with hope

Because the world is living lies,
Go with truth

Because the world is sick with sorrow,
Go with joy

Because the world is weary of wars,
Go with peace

Because the world is seldom fair,
Go with justice

Because the world is under judgment,
Go with mercy

Because the world will die without it,
Go with love.

3rd Quarter GDP REPORT

2011-12-27T08:53:00.000-05:00

2nd quarter 2009                     - 0.7%

3rd quarter 2009                       2.2%

4th quarter 2009                       5.6%

1st quarter 2010                      2.7%

2nd quarter 2010                     1.7%

3rd quarter 2010                      2.6%

4th quarter 2010                      3.1%

1st quarter 2011                      0.4%

2nd quarter 2011                     1.3%

3rd quarter 2011                     1.8%

4rd quarter 2011       Advance Estimate     1/27/12
                               Second Estimate        2/29/12
                               Third Estimate           3/29/12

As housing goes …. So goes the economy!

Did YOU Know?

2011-12-27T08:10:00.000-05:00

With all of the discussion about the mortgage crisis and the goal of increasing home ownership over the past decade, did you know that the US ranks only 17th among developed countries? Did you know that Canada has a better ranking than the US?

OK. So what?

Did the miscalculation by the National Association of Realtors® of the homes sold per year since 2006 have any bearing on your buying or selling a home? Or did it clearly show that the economy is really worse off than reported?

Probably not; “experts used to be considered experts when they discussed their topic of interest more than 50 miles from their home! With the internet, there are NO experts!

OK. So what?

For 2012, you must consider finding a way to do things you have always have done – differently.

Do not rely on experts.
Do your own research.
Rely on you.
Rely on your gut.
Rely on your own instincts to succeed.

OK. So what?

2012 will be a better year than 2011. Start your planning today.

2011-12-22T07:33:00.002-05:00

Charlotte Housing Starts

2011-12-21T07:36:00.000-05:00

There was some good news this week about the increase in housing starts. I will do some research but I would guess that the majority of starts would be in multifamily housing starts --- rentals. This would generate work and thus jobs in the construction industry. Goods News.

What would you do?

2011-12-20T06:59:00.002-05:00

Imagine if you had a packet of 100 flower seeds and 100 watering cans with just enough water in each can to soak each seed for one day each.

It seems as though you could do one or two things.

Plant all 100 seeds and water each seed one time and just hope that some make it,

or

You might want to plant 20 seeds and water each 5 times over the course of a week.

You and I as marketers hate to throw away perfectly good seeds don't we?

2011-12-19T07:03:00.000-05:00

Will 2012 be a turning point or a tipping point
for the country?
for your community?
for your neighborhood?
for YOU?

Business Planning

2011-12-16T07:53:00.000-05:00

Have you started to prepare your business plan for next year? It is time to get started!
What is your backlog going into 2012?
What is your primary goal for 2012?
How will you generate work in 2012?
It is time to set your expectations - start now and hit the ground running in 2012.

Home Prices Increasing???

2011-12-15T07:28:00.000-05:00

Every local market is different and in many cases does not reflect the national statistics of price declines. In the small towns north of Charlotte, housing prices are on the increase. What about your market?

Peak of the Week

2011-12-14T07:45:00.000-05:00

In 2011, there is a slight leveling off of housing prices in Miami and Charlotte. But both cities are back to 2002-2003 prices. As the foreclosures are processed through the market and jobs return, housing appreciation will again return slow but steady. Until.................2013 - 2014 when the seller's market returns and prices escalate dramatically. Prepare today for tomorrow.

The History of a HOME

2011-12-13T07:29:00.000-05:00

This chart only reinforces the idea that over a long period of time, a home appreciates and adds to your wealth.
Why rent when you can buy?

Today will be a Perfect Day!

2011-12-12T08:10:00.000-05:00

This was the view out my front door this morning. Early morning rainbowS --- if you look closely to the top left, there is a second rainbow. Believe!

What is the difference?

2011-12-09T06:49:00.002-05:00

Do you need or want a job?

OR

Do you need or want work?

The Washington DC beltway politicians are again using unemployment numbers, rates and stories to gain political leverage with voters. It is interesting to me that the unemployment rate can decrease from 9.0 to 8.6% by creating only 140,000 new jobs. Yes, I know they are reporting that 310,000 people stopped looking for jobs and thus are no longer counted in the unemployment rate.

The drop in the unemployment rate is good but it doesn’t at all signify the economy is getting better. I think we need to focus on work rather than jobs!!

There is ONLY 64% participation in the labor force.

50% of all corporate profits are from overseas business – how will this work out in 2012?

There are jobs out there!
But very little work!

Let’s get ready to generate some work in 2012!

Statistics, Politics and Reality

2011-12-08T07:49:00.000-05:00

As per the Bureau of Labor Statistics: (in thousands)

                                                Dec 2009                          Dec 2010                               Nov 2011

Civilian Labor Force                154,142                            153,889                                  153,683

Employed                                139,877                            139,064                                  140,070

Unemployment Rate                   9.3%                                9.8%                                       8.6%

Unemployed                             14,265                             14,825                                     12,613

Not in Labor Force                  81,659                              83,941                                    86,757

I am not a statistician but the reality from Dec 2009 to Nov 2011 seems to me:

1. the total civilian labor force is about the same
2. the number of employed people is about the same
3. the total number of the unemployed has decreased and thus the unemployment rate looks great or at least the trend is in the right direction,
4. the total number NOT in the labor force has increased by about 5,000,000 people. This is over a 6% increase over the past two years.

You have to be the judge on the trend of the economy.

Is the “spin” that the unemployment rate is trending down and that is a good sign the economy is improving?

OR

Is the ‘spin” that the number of people leaving the workforce is trending up because there is no work?

Peak of the Week

2011-12-07T08:41:00.000-05:00

Welcome to the Peak of the Week -- a Wednesday when we look back at housing price trends and peek forward to what changes may be in store for housing prices. Remember, this is a national overview by the leading expert in tracking housing prices. Your local market may very well be different than the national trend and even different than your closest MSA (Metropolitan Statistical Area).

The two graphs basically tell me that most of the experts have no clue what is going on TODAY let alone forcast into the future. In the past year (August 2010 - 2011), the starting price level dropped about $7,000 (jsut over 4% reduction in price) and the projected bottom has been exetended out 6 months. This seems consistent with everything that I have read on the housing price problem.

The leading expert in the field is projecting August 2011 price levels to be reached again in about 2-years!!
Until the economy recovers hand in hand with housing, you must prepare for the worst and pray for the best.

As I have said many times ----- AS Housing Goes.........SO Goes the Economy!
What does this mean to YOU?

Revisiting Congress

2011-12-06T07:36:00.000-05:00

I posted the following on August 4, 2011:

Do You Know How Much Members of Congress Earn?

I guess there would be a debate on if they earn their salary but they do get paid!
In 1991, their annual salary was $101,900
In 2011, their annual salary is $174,000

In today’s Congress nearly 50% of all senators and representatives are MILLIONAIRES.

No wonder they are out of touch with US.
At a salary of $174,000 per year, they would be paid $14,500 per month.
In reviewing the congressional calendar for August – December, 2011, they will be in session 44 days.

$14,500 x 5 months = $72,500
$72,500 / 44 days = $1,647 per day
$1,647 / 8 hours = $205 per hour --- this is salary only and does not include benefits.

Some members in Congress are worth their salary and some are not. At least we have a chance to decide on who should stay and who should go by voting! Regardless, we should demand term limits.

Now we know how how congressmen obtain their wealth ---- "insider trading".
Illegal beyond the Capitol doors but legal for our elected officials.
Unethical beyond the Capitol doors but ethical within the halls of Congress.

WAKE UP AMERICA --- the double standard is with our elected officials.
Read --- "Throw Them All Out"

Consumer Confidence will Turn Around WHEN?

2011-12-05T07:37:00.000-05:00

Our economy is based on 70% consumer spending. If the consumer lacks confidence, our economy will only limp along. As you know, many of the sectors of our economy are improving but the most important, housing, continues to be problematic. Certainly, the financial industry is approaching housing with a ten foot pole. The pendulum swings again. Lending is an important component of housing but in the marketplace FEAR is the overriding factor:

Fear of the buying process – not understanding how the system works

Fear of losing their job and/or the lack of job security

Fear of their ability to make monthly payments

Fear of being “house poor”

Fear of the daunting loan process

Fear of qualifying and credit scores

By combining consumer fear in housing with the total lack of consumer confidence and you have an economic problem. What do we need from the government to solve these problems?
Government policies? Government Regulations? or Leadership?
We need leadership to instill confidence in the American Dream -- we can do anything!

2011-12-02T08:26:00.002-05:00

Housing - Pent-Up Demand & Lack of Supply -- Really?

2011-12-01T07:46:00.000-05:00

I have shown the above graph in other forms but this illustration clearly shows the over building that happened during the real estate "bubble". It also clearly shows the lack of new housing construction required to meet demand. A demand caused the increase in population and family formations. Due to the economic conditions, less families are being formed and home buyers are delaying decisions. All of which results in a pent-up demand. I really thought it would be 2012 because a Presidential election cycle was enough of an incentive to make something happen with the economy.

The "experts" say the economy is improving but slowly. That is a good thing. However, we the people will not feel good about making a home buying decision until the 'fear' has been replaced with optimism. In my opinion, single family housing starts will remain below the 1,400,000 housing starts requirement to keep pace with the housing NEED through 2012 and well into 2013.

Knowing the construction cycle, financing, and sales -- follow this line of thought.
November 2012 - elections
Holiday and Winter months follow when construction is typically slow
Spring 2013 --- New optimism and Hope!
We start to buy!!!!!!!!!
Builders may be ready to build but spec building will still not be permitting by lenders -- thus a housing start will not occur until the loan is approved for the buyer and for the construction loan for the builder

Construction will start in early summer 2013 - assuming the workforce is available and the builder has lots to build on.
First closings will be in late summer 2013.
Because of the lack of supply and the pent-up demand, prices will escalate rapidly.
Interest rates will rise and monthly costs will increase.

Plan for the worst ( is this the worst case? ) I don't think so! Let's pray for the best and I think this is the best case scenario.
What are your thoughts?

GDP from 2000 to 3rd Qt 2011

2011-11-30T07:57:00.000-05:00

If the desired pace is around 4%, the years following the recessionary dip of 2001were not spectacular in terms of growth. In fact, the pace of the economy was dismal. NOTE: the second estimate for 3rd QT GDP was lowered to 2.0% and at the end of this month, the GDP growth rate will be released.

The following graph illustrates the single family housing starts. As you know, in my little world, I think that AS Housing Goes..... SO Goes the Economy. As the economy was below the desired pace, single family housing starts continued to increase from 2001and starts were well above the number of starts needed to satisfy the "normal" housing market.

The single family housing starts took a nose dive in 2006. Two years before the recession officially started. The NAHB forecast in 2012 will be pushed back to 2013 or 2014. Then, the gloves come off. You will see dramatic price increases and the market will immediately turn into a sellers market. WHY?
Pent-up demand and a shortage of housing!!!!!!!!!!!!!!!

Rents are Increasing & the Monthly Cost of Owning A Home are Decreasing

2011-11-29T08:18:00.000-05:00

Price versus Cost

2011-11-28T07:36:00.000-05:00

Today, the 30-yr mortgage rate is under 4.0%!!!! A home is more than a long term investment. However, if you can save money on a monthly basis, why wouldn't you buy NOW rather than wait?

2011-11-25T07:58:00.002-05:00

GDP REPORT

2011-11-23T08:12:00.000-05:00

2nd quarter 2009              - 0.7%

3rd quarter 2009                 2.2%

4th quarter 2009                 5.6%

1st quarter 2010                 2.7%

2nd quarter 2010                1.7%

3rd quarter 2010                 2.6%

4th quarter 2010                 3.1%

1st quarter 2011                 0.4%

2nd quarter 2011                1.3%

3rd quarter 2011

Advance Estimate               2.5%

Second Estimate                 2.0%

Third Estimate                   Dec 22

Release dates in 2012 Gross Domestic Product

4rd QT 2011
Advance Estimate     1/27/12
Second Estimate       2/29/12
Third Estimate          3/29/12

As housing goes …. So goes the economy!

HAPPY THANKSGIVING

Relocating for a Job?

2011-11-18T08:14:00.000-05:00

As the unemployment rate continues to inch down and as more private sector jobs are being created, job seekers may be considering relocating to obtain a new job. Challenger, Gray and Christmas, Inc has been tracking job seeker relocations since 1986 and their Challenger Job Market Index showed the following trends of those finding employment relocated for their new job:

2006      16.5%

2007      14.7%

2008      11.6%

2009      13.3%

2010       7.3%

2011       9.4%

Maybe job seekers are now considering moving to states with below national average unemployment rates. Companies are still mining the local talent pool and not paying for relocations. I would guess that most companies do not even look at a resume with an out of state address.

However, as the local talent pool is exhausted, companies will again expand their recruitment efforts to other states. The problem will be the reluctance of those seeking a job to move because of the price of their home. Companies will have to start to consider the “home” as being the major reason for finding qualified talent.

The other aspect is that companies are seeking less experienced talent with less “baggage” as they hire outside of their local talent pool. The older workforce have the talent, experience, and know-how to immediately help a company but are not being considered because they have a home to sell!

If companies are reluctant to pay for out of area talent, their expansion will slow down and will wait for a better economic climate.

The cycle continues.

As Housing Goes……So Goes the Economy

Existing Home Sales

2011-11-17T07:38:00.000-05:00

For the past three years and 2011, the existing homes sales have been well below the trend line. As the population continues to increase and family formations are on-hold due to the economic downturn, there will be a pent-up demand for existing homes.

Everything is timing --- just when will real estate turn around?

Turning around the economy has a lot to do with consumer confidence and their fear. There are some experts predicting the real estate industry will not turn around until 2013 or 2014.

Let’s pray for the best and expect the worst.

As Housing Goes....So Goes the Economy

An Example of a LOCAL Market

2011-11-16T08:41:00.000-05:00

The following information is taken from the Carolina Multiple Listing Service, Inc. for only Birkdale. Birkdale is a community of over 1,000 homes and is located approximately 15 miles north of Charlotte, NC. Contrary to the overall Charlotte region and many areas across the country, Birkdale has held its value and price trends are up.

YEAR                 # of                           AVG                          SP/LP                      DOM
                CLOSED HOMES     CLOSED PRICE

2005                  96                          $317,058                         98%                          41

2006                  80                          $351,168                         98%                          32

2007                  75                          $364,545                         98%                          33

2008                  47                          $382,782                         97%                          43

2009                  38                          $314,827                         96%                          76

2010                  40                          $352,746                         96%                          141

Thru 11/18/11    48                          $358,565                         96%                          140

Most real estate experts indicate housing prices are back to 2003 levels. Of course this is a national viewpoint and NOT indicative of local markets. In fact, Birkdale prices are moving back up for a couple of reasons. The community did not see rapid housing appreciation during the housing boom – 3-5% increases. The community is stable and has not experienced many foreclosures or short sales that cause a downward spiral of housing prices.

The other interest fact is the number of days on the market (DOM). During the boom period homes stayed on the market for about a month and now approximately 4 months – a normal market!

Also, seller’s seem to be making price concessions even if the for sale inventory is low. To me this is reflective of “fear” in the marketplace.

Why wouldn’t you investigate your own neighborhood housing price trends and determine how your LOCAL market is fairing in today’s economy?

Where are YOU on this Graph?

2011-11-15T07:16:00.000-05:00

The Cycle Continues!

2011-11-14T07:39:00.000-05:00

As Housing goes.......... So goes the Economy!

2011-11-11T10:29:00.001-05:00

When you rearrange the letters

2011-11-11T07:01:00.000-05:00

Unknown source:

PRESBYTERIAN:
When you rearrange the letters:
BEST IN PRAYER

ASTRONOMER:
When you rearrange the letters:
MOON STARER

DESPERATION:
When you rearrange the letters:
A ROPE ENDS IT

THE EYES:
When you rearrange the letters:
THEY SEE

GEORGE BUSH:
When you rearrange the letters:
HE BUGS GORE

THE MORSE CODE:
When you rearrange the letters:
HERE COME DOTS

DORMITORY:
When you rearrange the letters:
DIRTY ROOM

SLOT MACHINES:
When you rearrange the letters:
CASH LOST IN ME

ANIMOSITY:
When you rearrange the letters:
IS NO AMITY

ELECTION RESULTS:
When you rearrange the letters:
LIES - LET'S RECOUNT

SNOOZE ALARMS:
When you rearrange the letters:
ALAS! NO MORE Z'S

A DECIMAL POINT:
When you rearrange the letters:
I'M A DOT IN PLACE

ELEVEN PLUS TWO:
When you rearrange the letters:
TWELVE PLUS ONE

11-11-11

Taxes……….Taxes!!!

2011-11-10T07:15:00.000-05:00

Have you read your latest cable bill lately? 10% of the bill is for taxes. The following taxes are as described on my cable bill:

State Sales Tax

E-911 Surcharge

Federal Universal Service Fund

Telecommunications Relay Surcharge

FCC Fee

FCC Regulatory Fee – Voice

Federal Regulatory Recovery Fee

State and Local Sales Tax

Really?! It would be interesting to find out exactly where our money goes because we can’t negotiate these charges and we pay on blind faith? It seems like state sales tax is being charged twice!! It would also seem that we are paying a sales tax on a service rather than a product.

In my spare time, I will research the “Federal Universal Service Fund” and let you know where and your money is being used by?

Quote on Engineering:

2011-11-09T07:58:00.000-05:00

“It is a great profession. There is the fascination of watching a figment of the imagination emerge through the aid of science to a plan on paper.

Then it moves to realization in stone or metal or energy. Then it brings jobs and homes to men. Then it elevates the standards of living and adds to the comforts of life.

That is the engineer’s high privilege.

To the engineer falls the job of clothing the bare bones of science with life, comfort, and hope.

No doubt as years go by the people forget which engineer did it, even if they ever knew. …….

but the engineer himself looks back at the unending stream of goodness which flow from his successes with satisfactions that few professions may know.

I believe, in 1954, Herbert Hoover , our 31st President and only practicing engineer before becoming President was speaking about a land development engineer.

2011-11-08T07:05:00.002-05:00

Worth Waiting?

2011-11-07T06:59:00.000-05:00

The overall Case Shiller composite of the metro markets shows another trend line “up”. I do look for trend lines and not so much what the current prices are ---- after all it remains a buyer’s market in most states but not in every local market!

This latest graph shows a volatile trend line bouncing along the bottom. Prices are reacting to the vicious cycle of job loss – foreclosures – price reductions and start over again. The interesting aspect of the graph is that the trend line is contained within a relatively small range for a period of time.

Of course, the pricing trend lines will give you an idea of how the national market is reacting but you need to focus on:

1. Local Market

2. Monthly Cost

Housing history has shown us that housing appreciates over time. If you want to establish roots in a community and buy a home for your family, why would you wait?

The key is the monthly cost!!

The following illustration shows the price of the home increasing but the monthly COST decreasing --- simply because of the interest rates.

There is no better builder of equity over the long term than real estate. If you can minimize your cost below your monthly rent, why would you not consider buying a home for long term equity building rather than give your money to a landlord?

Credit Scores – Myths & Truths

2011-11-01T07:13:00.000-04:00

The following questions and answers are a result of a Bankrate.com session on FICO® Scores. I have summarized the information posted by Rachel Bell.

1. Does the credit report include the FICO® Score?

The credit report does not contain any scores. The credit report contains your credit history gathered by the credit bureaus. It basically shows your history or use and repayment of credit. It also shows your pursuit of credit.

Your credit report should be checked for accuracy. You can obtain a free credit report once a year from http://www.annualcreditreport.com/. A credit score helps lenders understand the information contained in your credit report.

2. Will your FICO® Score be affected by applying for a line of credit or extending a line of credit?

The credit inquiry may show up on your credit report. This may affect your credit score depending on the type of credit and if you have made similar requests over the past year.

The FICO® Score will not be affected by shopping around for the best mortgage, auto or student loan within 30 days prior to scoring. Your credit score is not affected by seeing a credit counselor.

3. Are all credit scores FICO® Scores?

90 of the top 100 U.S. lenders use FICO® Scores. Other credit scores may be misleading and may not be accepted by these lenders. FICO® Scores can be purchased at www.myFICO.com.

Remember FICO® Scores are used by lenders to make their credit decisions. Other credit scores that are NOT labeled “FICO® Score” are prepared using different methodology and may be misleading.

4. Is your credit score used by lenders to give credit?

Credit scores are a quick way for lenders to understand your credit history. Each lender will approach a credit inquiry differently and many will consider other information to help them make an informed decision.

Establishing a high FICO® Score is a result of paying your bills on time, keeping your credit card balances low, and applying for credit only when necessary.

I have been told by mortgage lenders that the FICO® Score in many instances is different from other types of credit scores. You may think you have a 730 credit score but your FICO® Score may be substantially different. What I do know – the higher the FICO® Score, the better chance of obtaining credit at more favorable interest rates.

2011-10-31T07:36:00.002-04:00

GDP REPORT

2011-10-28T07:09:00.000-04:00

2nd quarter 2009                          - 0.7%

3rd quarter 2009                             2.2%

4th quarter 2009                              5.6%

1st quarter 2010                               2.7%

2nd quarter 2010                             1.7%

3rd quarter 2010                              2.6%

4th quarter 2010                              3.1%

1st quarter 2011                               0.4%

2nd quarter 2011                              1.3%

3rd quarter 2011
Advance Estimate                             2.3%
Second Estimate                             Nov 22
Third Estimate                                 Dec 22

The GDP advance estimate for the 3rd quarter is fantastic. Hopefully this will signal a sustained upward trend in the economy.

Release dates in 2012 Gross Domestic Product

For 4rd QT 2011
Advance Estimate      1/27/12
Second Estimate        2/29/12
Third Estimate           3/29/12

As housing goes …. So goes the economy!

The World of Baseball or Politics?

2011-10-27T07:14:00.000-04:00

I am a baseball fan. My teams did not make it to the World Series this year. I wasn’t all that interested in watching and learning about the players and teams in the World Series. However, I still watch the games and I am now a fan of both teams.

Reflecting on this past season, I remember my favorite team and their problems.

At the beginning of the season, the fans had high hopes with new players and a new manager. The fans were excited about the season and they expected a winner.

The team seemed to be functioning however they were not playing up to expectations. In fact, the team was losing and the manager made questionable moves.

Surprisingly, the team decided to spend money on new uniforms and equipment. And, they started to give away baseball caps to the first 1,000 fans into the stadium for each game. Unfortunately, the team was still losing.

Just before the All Star break, the fans began to boo the players and manager. Interestingly, some of the players quit the game, retired or got traded. The manager was optimistic that the second half of the season would be better with some new players.

The team became dysfunctional. The newer teammates wanted to hustle and bring energy to how they played the game. The veterans of the team didn’t like how the new comers played the game. They especially did not like how they voiced their opinions on baseball strategy.

The team during this period had to raise the prices of tickets, all merchandise and at the concession stand. Still, the fans wanted the team to win. They called on the manager to play the game the way it is supposed to be played and win with the players on the team.

The manger did not adapt to the new team nor did the team adapt to the manager.

Surprisingly, half way through the second half of the season, the manager started to leave the dugout and go up into the stands to talk with the fans ---- during the game!

The manager told the fans that the team was dysfunctional and they will never win. But, as the manager, the fans need to believe in him because if given the right team with the right chemistry, his team will win.

The manager tried to explain why the fans had to pay more to attend a game. After all new uniforms and equipment cost a lot of money and someone had to pay for it.

Unfortunately, the team continued to lose but they dressed the part! The manager’s press conference after each loss highlighted the short comings of the players. The manager placed the blame on the shoulders of the players. He said that he knows best and certain players need to be traded so that he can properly implement his baseball strategies and become winners again.

The manager wanted again to buy new uniforms and change the image of the team. He also purchased new bats so that they could score more runs. He bought new baseball gloves so they could catch the ball more often. He even had the players chip in to subsidize the cost of the baseball hats so that every fan could have a hat.

The fans voiced their opinion. They wanted the manager to get out of the bleachers and get into the game.

Toward the end of the season, the team had the worst record in baseball. The fans continued to fill the ball park since they loved the game of baseball. The fans in the left and right field stands continued to boo while the fans in the middle remained positive and optimistic.

The manager traded their catcher. He is the best defensive catcher in baseball. Nobody would steal a base when he was behind the plate. The manager also traded his homerun hitter and the best pitcher on the team.

All of the other teams knew that these moves would make the team weaker since the team nucleus was gone. Other teams wanted to play our team. The other team could improve their hitting averages and steal bases at will.

At the end of the season, the manager would appear at the beginning of each game and set the line-up but again disappeared into the stands. The manager lost confidence in the players and the players lost confidence in the manager.

The fans only wanted a winner because they are loyal fans. We voiced our opinions but the manager and players didn’t listen.

Before the new season starts, we will watch two great teams play in the World Series. The Texas Rangers and St. Louis Cardinals are putting on a great show for the game of baseball. The managers are engaged and each game has been fantastic to watch.

I am praying that it is not too late for our organization to succeed. Off-season moves will either make us again a winner or continue the trend of individual egos playing and managing a team sport. Fortunately, the contracts for the manager and players are up for renewal.

If you had a vote today, would you vote to retain the manager and the players or make changes?

Peak of the Week – Going “Green”

2011-10-26T07:06:00.000-04:00

The peak of the week is a look back in time and a peek ahead.

Source: Unknown
In the line at the store, the cashier told an older woman that she should bring her own grocery bags because plastic bags weren't good for the environment.

The woman apologized to him and explained, "We didn't have the green thing back in my day."

The clerk responded, "That's our problem today. Your generation did not care enough to save our environment."

He was right -- our generation didn't have the green thing in its day.

Back then, we returned milk bottles, soda bottles and beer bottles to the store. The store sent them back to the plant to be washed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled.

But we didn't have the green thing back in our day.

We walked up stairs, because we didn't have an escalator in every store and office building. We walked to the grocery store and didn't climb into a 300-horsepower machine every time we had to go two blocks.

But she was right. We didn't have the green thing in our day.

Back then, we washed the baby's diapers because we didn't have the throw-away kind. We dried clothes on a line, not in an energy gobbling machine burning up 220 volts -- wind and solar power really did dry the clothes. Kids got hand-me-down clothes from their brothers or sisters, not always brand-new clothing.

But that young lady is right; we didn't have the green thing back in our day.

Back then, we had one TV, or radio, in the house -- not a TV in every room. And the TV had a small screen the size of a handkerchief (remember them?), not a screen the size of the state of Montana.

In the kitchen, we blended and stirred by hand because we didn't have electric machines to do everything for us. When we packaged a fragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap.

Back then, we didn't fire up an engine and burn gasoline just to cut the lawn. We used a push mower that ran on human power.

We exercised by working so we didn't need to go to a health club to run on treadmills that operate on electricity.

But she's right; we didn't have the green thing back then.

We drank from a fountain when we were thirsty instead of using a cup or a plastic bottle every time we had a drink of water. We refilled writing pens with ink instead of buying a new pen, and we replaced the razor blades in a razor instead of throwing away the whole razor just because the blade got dull.

But we didn't have the green thing back then.

Back then, people took the streetcar or a bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi service. We had one electrical outlet in a room, not an entire bank of sockets to power a dozen appliances. And we didn't need a computerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza joint.

But isn't it sad the current generation laments how wasteful we old folks were just because we didn't have the green thing back then?

And you are NOW just going green? Really?

The Forgotten Worker!

2011-10-25T07:13:00.000-04:00

The housing crisis is tied first to the job losses and second to the economic recovery. For years, I have been saying “As housing goes………..So goes the Economy”

There are over 17 million sole proprietorship's in the United States.
Add in single owner LLC’s and there is a significant business segment which have been severely impacted by the economic downturn but not reported on.

Sole proprietorship's account for over 70% of all businesses in the US. Sole proprietors do not show up in the unemployment line, they don’t receive company paid health care benefits nor do they receive paid holidays. Every day it is a struggle for the sole proprietor to survive.

Are you?
Employed or a sole proprietor that own a home not underwater
                      Many sole proprietors could not refinance their home and take advantage of lower interest rates since their income is probably not consistent nor considered acceptable to qualify for a loan.

Unemployed or a sole proprietor that own a home not underwater
                     The unemployed can receive 99 weeks of unemployment benefits. The sole proprietor --- ZERO. Neither will be able to refinance.

Employed, unemployed or a sole proprietor that own a home underwater
                    Today, banks will favor the employed while the unemployed and sole proprietors must pursue a short sale or foreclosure solution.

The vicious cycle continues……………As Housing Goes – So Goes the Economy!
Wake Up America!

A Different Perspective on OUR Debt

2011-10-24T07:29:00.000-04:00

The US debt approx.                         $14,000,000,000,000

World population                                          7,000,000,000

If every human on the face of the planet contributed $2,000 to our debt, we could start over!

However, the world median income is LESS than $2,000 PER YEAR!

Oh!!      What should we do?
Let’s start now to:                  Stop Spending
                                             Pass Term Limits
                                             Balance the Budget

Wake Up America!

Property Rights versus Eminent Domain

2011-10-21T07:20:00.000-04:00

5th Amendment to the Constitution:

……nor shall private property be taken for public use without just compensation.

Definition of Eminent Domain:

“n. the power of a governmental entity (federal, state, county or city government, school district, hospital district or other agencies) to take private real estate for public use, with or without the permission of the owner”

Kelo v. City of New London, 545 U.S. 469 (2005)[1] was a case decided by the Supreme Court of the United States involving the use of eminent domain: to transfer land from one private owner to another to further economic development.

The case arose from the condemnation by New London, Connecticut, of privately owned real property so that it could be used as part of a comprehensive redevelopment plan which promised 3,169 new jobs and $1.2 million a year in tax revenues.

The Court held in a 5–4 decision that the general benefits a community enjoyed from economic growth qualified such redevelopment plans as a permissible "public use" under the Takings Clause of the Fifth Amendment.

WAKE UP AMERICA!

Personal Responsibility

2011-10-20T07:13:00.000-04:00

It is incumbent upon us as individuals to pass along our values and sound principles - lead by example. The federal government is seemingly in our face every hour of the day. Our elected officials are not leading by example. They spend what they don’t have, use savings accounts to spend and incur more and more debt. You can’t change a personality so we must elect political officials that reflect our values and principles.

Ronald Reagan:

“Balancing the budget is a little like protecting your virtue: you just have to learn to say ‘NO’”

My saying from the early ‘80’s ----- “Nice but NOT necessary”

SAVE OR SPEND

NO DEBT OR DEBT

Our way of life will not go back to the way it used to be!

Wake Up America!

Peak of the Week

2011-10-19T07:18:00.000-04:00

The family structure has changed. On Wednesday’s I try to illustrate a comparison of where we have been and where we are going. We all strive to pass along our values to the next generation. The role of parents is more important now than ever before. As Ronald Regan said;

“All Great Change in America begins at the Dinner Table”

Just compare a few sitcoms from yesterday to today.

The Andy Griffith Show                                                 Parks & Recreation

Happy Days                                                                 The Office

I Love Lucy                                                                  How I Met Your Mother

The Cosby Show                                                          Modern Family

All in the Family                                                            Community

It is time for families to sit down for dinner- together without the TV being on and without all of the technology gadgets! Talk to each other - I know this works!

Wake Up America!

Just Being Right versus Political Correctness

2011-10-18T07:09:00.000-04:00

The following information is taken directly from Wikipedia, the free encyclopedia. I have removed the hyperlinks but certainly investigate political correctness on your own.

Political Correctness

Political correctness (adjectivally, politically correct; both forms commonly abbreviated to PC) is a term which denotes language, ideas, policies, and behavior seen as seeking to minimize social and institutional offense in occupational, gender, racial, cultural, sexual orientation, certain other religions, beliefs or ideologies, disability, and age-related contexts, and, as purported by the term, doing so to an excessive extent

Accusations of cultural Marxism
Main article: Cultural Marxism

University of Pennsylvania professor Alan Charles Kors and lawyer Harvey A. Silverglate connect political correctness to Marxist philosopher Herbert Marcuse. They claim that liberal ideas of free speech are repressive, arguing that such "Marcusean logic" is the base of speech codes, which are seen by some as censorship, in US universities. Kors and Silvergate later established the Foundation for Individual Rights in Education, which campaigns against PC speech codes.[26]

Some conservative critics claim that political correctness is a Marxist undermining of Western values.[27] William S. Lind and Patrick Buchanan have characterized PC as a technique originated by the Frankfurt School, through what Buchanan describes as "Cultural Marxism".[28][29] In The Death of the West, Buchanan says: “Political Correctness is Cultural Marxism, a regime to punish dissent and to stigmatize social heresy as the Inquisition punished religious heresy. Its trademark is intolerance.” [30]

Examples of language commonly referred to as "politically correct" include:[14][page needed]

• "Mentally challenged" in place of "Retarded" and other terms

• "African American" in place of "Black," "Negro" and other terms

• "Native American" (or "First Nations" in Canada) in place of "Indian"

• "Caucasian" in place of "White", and other terms

• "Gender-neutral" terms such as "firefighter" in place of "fireman"

• The use of the word "gender" instead of the word "sex" to distinguish males and females

• Terms relating to disability, such as "visually challenged" or "hearing impaired" in place of "blind" or "deaf"

• "People of color" in place of "ethnic minorities" or "non-whites" in countries populated predominantly by people who are white.[citation needed]

• "Happy Holidays" in place of "Merry Christmas" and other holiday greetings

WAKE UP AMERICA!!

2011-10-17T07:24:00.002-04:00

What path will you follow?
There may be some compromises but no middle ground.
What do you embrace? What reinforces your values?
I have prepared the following lists to help you make up your mind.

Just Right                                         Politically Correct

Goodness                                        Darkness

Humble                                            Arrogant

Trust in God                                     Gods/Atheist/Agnostic

Personal Responsibility                     Government Responsibility

Truth                                                Distorted Truth

Property Rights                                Eminent Domain

Save                                               Spend

No debt                                            Debt

Act                                                 React

Deregulate                                       Regulate

US                                                   UN

Individual Salvation                          Collective Salvation

Manage Your Own Money                Let Government Distribute Your Money

Ronald Reagan Quotes:

“If we ever forget that we are ‘One Nation Under God,’ then we will be a nation gone under.”

“Wouldn’t it be better for the human spirit and for the soul of this nation to encourage people to accept more responsibility to care for each other rather than leaving those tasks to paid bureaucrats?”

“We make a living by what we get, we make a life by what we give”

The 2012 election is a turning point for our country and for us as individuals. I am not 100% sure we can make it to Election Day before a calamity occurs - a significant event that will change us before we have a chance to change ourselves.

“Not to Speak is to Speak”

“Not to Act is to Act”

Townhome

2011-10-14T06:40:00.000-04:00

The townhomes we looked at were in a great location! A townhome is a great way to go if you’re ready to escape the apartment-style living but not quite ready to tackle a freestanding house. It was nice that the bedrooms were upstairs, separate from the living space. I’m not one for yard work but I love having that outdoor space. These townhomes were a great solution with a small, low-maintenance outdoor patio.

Pros:
No one above or below you
More than one floor with living space on the first floor
Front porch and/or patio
Parking right at your door or attached garage
Minimal-to- no yard work
Pool & fitness (depending on the community)

Cons:
People on both sides

While I love the house I rent (a very small bungalow), I understand the appeal to purchase a townhome or condo. There are many great amenities that can be available with little to no maintenance on the property. It’s definitely something for me to consider in my next step.

Condo or Townhome? That is the Question

2011-10-13T07:12:00.000-04:00

Guest Blog Post By: Amy Gibbs

I think the most exciting thing about buying your first home is the actual process of looking at homes. I couldn’t wait to see what my choices would be. I was counting down the days … and finally the day arrived!

The first day of looking was devoted to condos and townhomes. As a former apartment dweller, I associated the condo living with the same lifestyle as an apartment. I’ve recently moved from the apartment to a rental house.

In my mind, a townhome falls somewhere in between the two.

Before we get into the nitty-gritty, below is a great chart to compare condo living versus townhome living:

Condo
The first stop was a newer condo in an area with many amenities close by. I wasn’t expecting to like the condo because it seemed like it would be very similar to the apartment I had recently left behind. As I walked in, I was pleasantly surprised! You still share the walls with others, but there were many things that made up for that. There was a lot of open space with great natural light. No dingy dark apartment here! I started going through my mental checklist of pros and cons and here’s what I came up with:

Pros:
Open space
Natural light
Secured building
Parking in the building
No yard work
Pool
Fitness center
Shopping you can walk to

Cons:
People above and below you (unless you’re on the top floor or bottom floor)
People sharing walls
Still didn’t feel like my own space because of the closeness of the neighbors
No “front porch.” Small outdoor space.

Peak of the Week – Social Media

2011-10-12T08:13:00.002-04:00

Source: Social 2B.com

By: Marina Shapiro

Out with the old, and in with the new.’ The industry of Social Media Marketing is maturing and we are predicting a new dawn for the Social Media revolution.

So, what will it mean to be ‘social’ in 2011?

What aspects of Social Media will be integral to the way businesses develop and grow? How will this impact the technology?

Who will ‘win’ at Social Media this year?

We’ve compiled top 11 predictions for the world of ‘social’ in 2011.

1. “…next year is really going to be about paring down to the essentials based on proven successes and strong metrics.” http://mashable.com/2010/12/21/small-business-predictions/

2. “Outsourcing social media such as blogs, writing e-mails, answering customer service inquiries, writing web copy, social media, ghostwritten blogs, tweets. People don’t always have the availability to write, tweet, research and post their own content.” http://www.businessnewsdaily.com/2011-big-ideas-for-small-businesses-0835/

3. “All signs are pointing toward a multicultural Web. By 2015, a billion people in BRIC countries [Brazil, Russia, India and China] will be using PCs. Thus, 2011 will mark the year that businesses either adapt to these changes or get left woefully behind.”

http://www.businessnewsdaily.com/2011-big-ideas-for-small-businesses-0835/

4. “If you don’t have a mobile version of your site today, you are already behind.” http://www.clickz.com/clickz/column/1934793/21-social-media-predictions-trends-2011

5. “B2B companies will catch up to B2C companies in using social media.” http://www.clickz.com/clickz/column/1934793/21-social-media-predictions-trends-2011

6. “The Rise of the Marketing Technologist – Marketers for the last few years have been closet techno geeks and it’s time for them to rise up – companies need digitally fluent marketers who can apply technologies to help make marketing more measurable and scientific. Then we can really change the dynamic from marketing as a cost center to marketing as a profit center!” http://socialmediatoday.com/pauldunay/250079/11-b2b-marketing-predictions-2011

7. “Marketing and sales alignment continues to be the #1 issue impeding marketing’s ability to be perceived as a major driver of B2B business value.” http://www.b2bmarketinginsider.com/strategy/b2b-marketing-predictions-for-2011

8. “Consumers’ increasing concerns over noise and privacy will decrease the relatively open access marketers have enjoyed in social channels. The easiest tactics will be the least effective, forcing marketers to bring the same kind of creativity, audience differentiation, and strategy that they bring in other channels. www.forrester.com/rb/Research/2011_now_social_media_marketing_gets_tough/q/id/57771/t/2?cm_mmc=Forrester-_-Blogs-_-Related%20Research-_-5583

9. “Social media measurement will mature rapidly now that there is real money being spent by marketers in the social realm. http://marketingmeasurementtoday.blogspot.com/2011/01/predictions-for-social-media-metrics.html

10. “Commerce happens in communities of interest — not social networks.

First, I’d like to distinguish between a social network and a community of interest, though the terms are often used interchangeably. Social networks or, more aptly, social networking is how we connect with people.” http://adage.com/digitalnext/post?article_id=147897

11. “In 2011, those brands that truly embrace “social content generation” will build themselves a kingdom. The connections between brand, art or skill and visual communications in a socially connected world can create powerfully authentic appeal for brands.” http://www.fastcompany.com/1712634/2011-back-to-the-future

Social Networking

2011-10-11T07:00:00.002-04:00

“Social networking is how we connect with people.”

“People are "pulled" into social networks via technology (e.g., I was "friended"), but people join communities of interest by choice.”

“Taking this principle to the real world, we can see that a focused community of interest with 300 people who love fly fishing will be far more engaged and monetizable than a Facebook page with 10,000 vague "likes.”

“In 2011 we will see that quality of engagement delivered in aggregated communities of interest will trump quantity of impressions delivered in one humungous "social network."

Pictures are worth a Million Votes

2011-10-10T08:23:00.000-04:00

Both of the above graphs are from an article by Henry Blodget, CEO & Editor-in-Chief of Business Insider

October 1, 2011.

The following graph is from an article by Exra Klein of the Washington Post

Interesting Perspective - Wal-Mart vs. The Morons

2011-10-07T07:43:00.000-04:00

If you have been reading my blog over the past several years, you will know that I am not this creative. I am passing along these thoughts from an anonymous source.

1. Americans spend $36,000,000 at Wal-Mart every hour of every day.

2. This works out to $20,928 profit every minute!

3. Wal-Mart will sell more from January 1 to St. Patrick's Day (March 17th) than Target sells all year.

4. Wal-Mart is bigger than Home Depot + Kroger + Target + Sears + Costco + K- Mart combined.

5. Wal-Mart employs 1.6 million people, is the world's largest private employer, and most speak English.

6. Wal-Mart is the largest company in the history of the world.

7. Wal-Mart now sells more food than Kroger and Safeway combined, and keep in mind they did this in only fifteen years.

8. During this same period, 31 big supermarket chains sought bankruptcy.

9. Wal-Mart now sells more food than any other store in the world.

10. Wal-Mart has approx 3,900 stores in the U S A of which 2,906 are Super Centers; this is 1,000 more than it had five years ago.

11. This year 7.2 billion different purchasing experiences will occur at Wal-Mart stores. (Earth's population is approximately 6.5 Billion.)

12. 90% of all Americans live within fifteen miles of a Wal-Mart.

13. Wal-Mart has gross sales that total more than the total revenue of all the countries in the world, except 6.

MAYBE we should hire the guys who run Wal-Mart to fix the economy.
This should be read and understood by all Americans Democrats, Republicans, E V E R Y O N E !!

To the President and all 535 voting members of the Legislature, both parties; it is now official - you are ALL corrupt morons:

a. The U.S. Postal Service was established in 1775. You have had 234 years to get it right and it is broke.

b. Social Security was established in 1935. You have had 74 years to get it right and it is broke.

c. Fannie Mae was established in 1938. You have had 71 years to get it right and it is broke.

d. War on Poverty started in 1964. You have had 45 years to get it right; $1 trillion of our money is confiscated each year and transferred to "the poor" and they only want more.

e. Medicare and Medicaid were established in 1965. You have had 44 years to get it right and they are broke.

f. Freddie Mac was established in 1970. You have had 39 years to get it right and it is broke.

g. The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before. You had 32 years to get it right and it is an abysmal failure.

!!!You have FAILED !!!

In every "government service" you have shoved down our throats while overspending our tax dollars.

AND YOU WANT AMERICANS TO BELIEVE YOU CAN BE TRUSTED WITH A GOVERNMENT-RUN

HEALTH CARE SYSTEM??

YOU THINK YOU CAN RUN THE AUTO INDUSTRY.... THE BANKING SYSTEM?????

MAYBE WE SHOULD HIRE WALMART TO RUN THE GOVERNMENT???

WALMART SEEMS TO KNOW HOW TO RUN A BUSINESS.

WHY DON'T YOU GUYS JUST ADMIT IT'S WAY BEYOND YOUR PAY GRADE, AND QUIT?

YOUR GOING AWAY PARTY IS SCHEDULED FOR NOVEMBER 2012.

Homeownership

2011-10-06T07:05:00.000-04:00

Ronald Reagan – “Freedom is not something to be secured in any one moment of time. We must struggle to preserve it every day. And freedom is never more than one generation away from extinction.”

Since the height of the housing bubble in 2006, the housing industry has been in a crisis. You do not have to know very much about the economy and the housing industry to know that housing prices will not return to pre-bubble prices for years to come.

This depression has dramatically changed our youngest generation. Their freedoms are slowly being eroded away by government regulations and dependence on government is on the increase. It is not too late to make sure our children’s children enjoy the same freedom’s we have today.

Owning a home is a symbol of freedom. It is an important component of the American Dream.

Homeownership - The American Dream

2011-10-05T07:54:00.004-04:00

Reasons for Suburban or Urban Sprawl

2011-10-04T07:25:00.000-04:00

Guest Blog Post by:
Ashton Bowman
Civil and Environmental Engineering Student
University of North Carolina Charlotte
Land Development I – Homework #1

The desire for a higher quality of life is one main causes of suburban sprawl.

Families often prefer a suburban or rural home to urban housing for many reasons including better air quality, lower crime rates, better schools, and more attractive surroundings. Emissions from vehicles, industrial plants, etc. are much lower in the suburbs than in the city. Suburban living provides privacy, room for storage, a big yard.

Also, most families prefer the view from a suburban home (woods, water, and other homes) to the view provided by urban housing (commercial buildings, industrial plants, streets). Additionally, private automobiles are the cultural norm in America, so living in center-city to utilize public transportation is not a priority for many people. Private vehicles allow independence and personal expression (how nice your car is says something about you and your socioeconomic status, etc.).

Economics is another main cause of suburban sprawl, from the perspective of both the home-owner and the developer. The cost of living in the suburbs is less expensive than in the city. Additionally, it is cheaper and easier for developers to develop untouched, rural land than center-city property.

Zoning restrictions and existing infrastructure in the city make it more difficult for developers. And rural/suburban land is readily available, cheap, and allows for more flexibility and a faster process.

Overall, economics and the demand for a higher quality of life are the main contributors to suburban sprawl. As long as the market is in favor of low-density suburban housing and land is cheap and available, suburban sprawl will continue.

What is the Difference between California and West Virginia?

2011-10-03T07:21:00.000-04:00

California:
The Governor of California is jogging with his dog along a nature trail. A coyote jumps out and attacks the Governor's dog, then bites the Governor. The Governor starts to intervene, but reflects upon the movie "Bambi" and then realizes he should stop because the coyote is only doing what is natural.

He calls animal control Animal Control captures the coyote and bills the State $200 testing it for diseases and $500 for relocating it.

He calls a veterinarian. The vet collects the dead dog and bills the State $200 testing it for diseases.

The Governor goes to hospital and spends $3,500 getting checked for diseases from the coyote and on getting his bite wound bandaged.

The running trail gets shut down for 6 months while Fish & Game conducts a $100,000 survey to make sure the area is now free of dangerous animals.

The Governor spends $50,000 in state funds implementing a "coyote awareness program" for residents of the area.

The State Legislature spends $2 million to study how to better treat rabies and how to permanently eradicate the disease throughout the world.

The Governor's security agent is fired for not stopping the attack. The State spends $150,000 to hire and train a new agent with additional special training re: the nature of coyotes.

PETA protests the coyote's relocation and files a $5 million suit against the State.

West Virginia
The Governor of West Virginia is jogging with his dog along a nature trail. A Coyote jumps out and attacks his dog.

1. The Governor shoots the coyote with his State-issued pistol and keeps jogging. The Governor has spent $0.50 on a ..45 hollow point cartridge.

2. The Buzzards eat the dead coyote.

And that, my friends, is why California is broke and West Virginia is not.

GDP REPORT

2011-09-30T06:56:00.000-04:00

2nd quarter 2009                      - 0.7%

3rd quarter 2009                        2.2%

4th quarter 2009                        5.6%

1st quarter 2010                       2.7%

2nd quarter 2010                      1.7%

3rd quarter 2010                       2.6%

4th quarter 2010                        3.1%

1st quarter 2011                         0.4%

2nd QT

Advance Estimate July 29           1.3%

Second Estimate Aug 26             1.0%

Third Estimate Sept 29                1.3%

The third estimate was a good surprise. However, the second quarter was not much of a change from the first quarter. Maybe the difference from 0.4% to 1.3% doesn’t really matter --- bad is still bad. I really expected the GDP to be less than the first quarter, only because of trends. IF the 1.3% holds up because it will be revised again, we will again bounce along the bottom.

Wake up America!

Projected National Debt

2011-09-28T07:53:00.000-04:00

Source: The White House
It is beyond comprehension that Washington DC has not recognized the need to do SOMETHING! They continue to play politics with our future, our kid’s future and our children’s children future. In fact, it goes beyond reason that I suspect everything is done on purpose and for a reason. WE need to change things in 2012 and hope it is not too late!!

National Debt in TRILLIONS (ex. One Trillion dollars = $1,000,000,000,000)

2012                                      $11.7 trillion

2013                                      $12.7

2014                                      $13.3

2015                                      $14.0

2016                                      $14.7

2017                                      $15.3

2018                                      $15.9

2019                                      $16.5

2020                                      $17.1

2021                                      $17.8

In comparison with other countries based on the public debt as a percentage of their economy in 2010: (Source- The World Factbook)

Greece            143%

Italy                119%

Ireland             97%

Portugal           93%

USA               90%              Projected to be over 100% in 2011

Spain              60%

Tomorrow, September 29, 2011, the third GDP Estimate for the 2nd quarter will be published. The trend has been down while our debt as a percentage of our GDP increases.
The political environment in Washington DC has paralyzed this country.

Wake Up America!

Rental Vacancy Rates & Supply

2011-09-27T06:59:00.000-04:00

It is clear that this recession or is it a double dip recession or is it a depression continues to play havoc with the real estate market. Displaced homeowners due to foreclosures are flooding to rental units. Their credit has been seriously damaged primarily due to job loss and the downward spiral of the economy.

The demand for rental units has increased and the supply has not changed.

I have talked about the slowdown in family formations which fuels the home buying sector. As an example, family formations:

2010 - 357,000

2007 - 1,600,000

A pent-up demand for rental housing is currently due to foreclosures and will continue to grow as young people either move back with their parents or seek roommates.

Also, local government zoning has always limited multifamily housing and new projects are sporadic. NAR expects the vacancy rate to be below 5% by the end of the year. Below a 5% vacancy rate is considered a landlord’s market. Not unlike the single family home market which will ultimately become a seller’s market. Landlords have and will continue to push rental rates up.

In my opinion, with monthly rents increasing and difficult to find “newer’ rentals, buying a new home may be the best option today. Builders are re-establishing their product line to lower prices and offering fantastic incentives to buy. With interest rates at another historic low, it is possible to buy a new home today, lock in the interest rate and once you move in, your mortgage payment will be well below the monthly rent in your area. AND the home is yours ---freedom!

Ever wonder why someone would want to be a Politician?

2011-09-26T07:47:00.000-04:00

Most state politicians get re-elected and they have significant power over the way we live. Power, money, no accountability, and you don’t work too hard may all be very good reasons to run for office. If you have integrity and tell the truth, you would be a unique but well worth the following money!

I have selected several states for you to compare the states and how much your legislators earn for the time they work. Remember they also receive a pension. Most states calculate the pension on the highest salary they achieve and the length of time in the legislature. Source: USA Today

State                          Salary                       Length of ’10-’11                       Salary per Month
                                                                  Legislative Session                     Rounded (my calc)

Alaska                    $50,400                          3.5 months                                   $14,400

Maryland                $43,500                          3.0 months                                   $14,500

Montana                   $4,212                          4.0 months                                    $ 1,100

Texas                       $7,200                           6.0 months                                   $ 1,200

West Virginia          $26,000                           2.0 months                                  $13,000

North Carolina        $14,000                           4.0 months                                  $ 7,100

The monthly salary for most state legislators is much higher than your typical salary. You also get a pension and power is your goal.

As an example, in Texas, legislators link their pensions to judges that make $125,000 per year and NOT based on their $7,200 salary. So politicians can say they have not raised their salaries but their pension may be much higher than what you expect.

In North Carolina, how can I work for 4 months as a legislator and retain a job for the balance of the year? So, is it safe to say that “Joe the Plumber” is not a legislator?

Are they economists?

Are they attorneys?

Are they school teachers?

What sets them apart from the rest of us? The thirst for power or the financial security to allow them to seek power or do they have high ideals to do right?

So………………what do you think? Oh by the way, the Congress takes more time OFF from work than most state legislators work in a session.

4% Interest Rates & a Low Credit Score?

2011-09-23T07:40:00.000-04:00

In today’s real estate market, historically low interest rates seem to be the norm rather than the exception. This monetary policy is not helping new home construction, refinancing, nor increasing existing home re-sales. What is the problem?

1. Many people that could qualify for refinancing at a lower interest rate can’t because their home will not appraise.

2. Many homeowners have equity in their home but do not have the income to support refinancing.

3. We have discussed the lack of family formations, high unemployment and fear in the marketplace. All which contribute to the spiraling down of the housing industry.

I believe that if the mortgage interest rate was lowered to 1%, you may see an uptick in refinancing but this will not create new jobs nor significantly help the housing industry out of its downward spiral.

4. We also have many people able and willing to buy a home but they can’t because the rules have changed and it has become more difficult to obtain a mortgage. If their credit score is low, they will not qualify for a loan --- even with stable employment.

If you have a low credit score, you can help yourself by using the following guide:

• If you don’t use credit, you can’t raise your credit score
• Reduce or limit your credit card balance to a MAXIMUM 20-30% of the credit
• Pay down any credit card that is over 30% of the maximum credit limit before others. This will increase your credit score
• Having big balances on your credit cards impacts your credit
• Stabilize your finances to fix your credit
• Do not pay credit card interest for a great credit score. NOT carrying a balance is helpful to your finances and your credit score
• Equifax, Experian and TransUnion are the three credit bureaus. You should check your credit report to make sure it is correctly reported. Your credit score will suffer if the information is incorrect.
• You can get your credit report once a year for FREE. Go to the government run site AnnualCreditReport.com

Current Economic Trends

2011-09-22T07:00:00.000-04:00

Cities with the Best Value

2011-09-21T07:20:00.002-04:00

Kiplinger’s Personal Finance ranked US cities according to the median household income, cost of living, unemployment rate and several other factors. The intent was to determine which Cities are of the best value to live in. The top five are:

#1 Omaha, Neb
Unemployment Rate 4.6%
Cost-of-Living Index 90.3

Median household Income $53,457

#2 Charlotte, NC

Unemployment Rate 10.4%

Cost-of-Living Index 93

Median household Income $53,168

#3 Nashville, TN

Unemployment Rate 8.5%
Cost-of-Living Index 90.7
Median household Income $51,352

#4 Colorado Springs, CO
Unemployment Rate 9.3%
Cost-of-Living Index 92
Median household Income $56,576

#5 Knoxville, TN
Unemployment Rate 7.8%
Cost-of-Living Index 89.1
Median household Income $48,158

Interest Rate Projections

2011-09-20T06:40:00.000-04:00

The graph below illustrates what the “EXPERTS” think interest rates will move to during the balance of 2011 and beyond. Today, the interest rates are below the lowest rate of 4.5% on the graph; so much for leading experts in the field!

If we can’t project what interest rates will do over a short window ----- HOW can anyone anticipate what the economy will do??? They can’t! They take their best guess and because they are labeled an expert by the media, they are listened to by a few.

This graph should finalize our impression that our economic experts have been and continue to mislead us! No wonder we have lost confidence in government and don’t believe anything they say! Obviously free money is not jump starting the economy --- the interest rates have only been at historic lows for years now!

And, re-sales and new home construction remain at all time lows. Simply because family formations are below norm, fear of job loss and the pendulum of government.

The real estate industry is in a tailspin and the focus is on solar panels, green roofs and windmills ---- only for the selected and they fail --- just like in the early ‘80’s.

WAKE UP AMERICA!

“Is it right to be politically correct or just right?”

LinkedIn Groups

2011-09-19T06:46:00.000-04:00

Most LinkedIn Groups have changed their membership to be open for all LinkedIn members. My group “Land Development” will not be open for general membership. The LinkedIn “Land Development” Group just passed 4,000 members and continues to grow with contacts from all over the world.

If you are interested in joining a professional real estate development group, please type in Land Development in the LinkedIn group search bar and join us today. You will be expanding your professional network and connecting with like-minded professionals.

More Social Networking??

2011-09-16T07:14:00.000-04:00

“Green Stormwater Practices”

2011-09-15T07:13:00.000-04:00

I recently received a continuing education brochure which included a session on Green Stormwater Practices for civil engineers. You will learn:

Benefits of green stormwater practices
Evaluating green practices
Impact of green stormwater practices on LEED and other green designations

The practices to be evaluated in the seminar were listed in the brochure:
Bioretention
Cisterns
Permeable pavers/pervious concrete
Disconnecting impervious area/vegetate swales
Soil amendments (a soil conditioner added to improve plant growth and health)
Rainwater harvesting
Bioretention cells
Runnels (a narrow channel or course for water to flow)
Sustainable landscaping
Green roofs

In some areas of Australia, cisterns are required for every home. I have a link to a cistern video in case you are in the market to buy one. http://youtu.be/besl1h6t6FA.

I want to caution you. You need to obtain the proper construction and zoning permits from your town. It most likely isn’t an approved accessory use. If you live in a community with an HOA; you must also obtain their approval. You may have to hold a neighborhood meeting to explain what you want to do and they may demand a special color to blend into the architectural theme of your community. I am sure there are other things to think about but I will leave that up to you i.e. having to maintain your green roof!

Do you think “green” is an overused word?

Pre-Qualified or Pre-Approved??

2011-09-14T07:32:00.000-04:00

As you start your housing search you may hear phrases like:
“Make sure you are pre-qualified!” or “Get pre-approved!”
What do these mean, which one is best for you and how will they impact your search?

Pre-Qualification:
This is traditionally a review of your credit report and credit score.

This process may also include the completion of a loan application that your loan officer or mortgage consultant will review with you and run through an automated underwriting system. That automated system will let your loan officer/mortgage consultant know whether what you have told them in terms of income, assets and credit will fall within the general mortgage guidelines.

However, that is subject to you providing acceptable documentation to the lender. If you have clean credit, a strong job history, good assets and reserves, the prequalification letter is probably going to meet your needs as you look for a home.

Pre-Approval:

However, if you find you are borderline in any area, or if you just want to get the mortgage approval done prior to shopping for a home, a “true” preapproval is the way to go. Your loan officer/mortgage consultant will take a full loan application and collect all your documentation of income and assets. Your application will be submitted for processing and review by an underwriter.

While a prequalification will take around 30 minutes, the preapproval process will be more like three to five days (the underwriter typically needs this much time to review your file).

What you then get is a preapproval commitment letter that you can use with your agent as you shop for houses. The loan would then be subject to an acceptable appraisal on the property you choose.

Make sure when speaking to your lender that you get their definition of pre-qualification and pre-approval. Not everyone has the same definition. Find the best option for you as you start your home search. Once this moving piece is in place, your adventure can begin!

Current State of Affairs

2011-09-13T06:51:00.000-04:00

2011-09-10T07:20:00.002-04:00