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June 2008

Buy smart in today's market

With interest rates at a 35 year low, affordable financing, and abundant inventory, it’s a buyer’s market. “There are plenty of great opportunities that make the American dream of homeownership more affordable today if you know where to look and how to make the right deal,” says McGee, also author of “The ForeclosureS.com Guide to Advanced Investing Techniques You Won’t Learn Anywhere Else” (Wiley) and “The ForeclosureS.com Guide to Investing in Pre-foreclosures Without Selling Your Soul” (Wiley).

A recent survey from Trulia.com by Harris Interactive® indicated that more than half of Americans would consider purchasing a foreclosed home. “It sounds like those Americans recognize a good deal,” adds McGee. “So what are you waiting for? It’s bargain time. Buy now.”

McGee offers a few tips to help you buy right in today’s markets:

- Do your homework before you buy. That means know the local market, the going price in a specific neighborhood, and what kind of financing is available. You can get free information and guidance online at sites like ForeclosureS.com (www.ForeclosureS.com) and the National Association of Realtors (www.Realtor.org). But beware those websites that promise instant riches for “no effort and no money down.”
- Open your eyes to the opportunities that surround you. Even cities with high foreclosure rates have motivated sellers in sought after neighborhoods — where well-priced homes resell quickly.
- Make sure you know the current prices for comparable properties in the area. With markets in flux, prices from three months ago no longer are good enough.
- Don’t be afraid to ask for a discount. To figure your offering price don’t forget to deduct the costs of necessary repairs and rehab and your profit. If you’re buying a property with plans to turn around and resell it, deduct from your offering price the cost of buying, holding and selling the property until you find a buyer - and don’t forget to pencil in your profit!
- Don’t be derailed by marketing come-ons, gimmicks, and “insider secrets”. If it sounds too good to be true, it is.
- Beware the “great deals” at the auctions. Competitive bidding drives up prices. Instead of buying a house at discount, you could end up paying full market price or more if you factor in auction commissions and fees.
- Consider FHA as a low-cost, safe financing alternative. With new higher loan limits, interest rates at 35 year lows, and home buyer tax incentives still being ironed out in Congress, this is an excellent opportunity for you to buy low.

1:12 PM - Jun. 29, 2008 - comments {0} - post comment

Are we getting close to the end of the mess?

In the initial stages of a Recession (yes everywhere people are now referring to the “R” word) sellers remain under an illusion of inflated home values regarding the real value of their property, while around them this false impression of value leads to a drop in sales as buyers respond by pulling out of the market.   Stefan Swanepoel of the Swanepoel Trends Report has some ideas of how to survive

At some point (about now) reality sets in and some owners reduce prices fueled by a growing financial crunch. There is an increase in the number of short sales, foreclosures rise and banks start taking back many unwanted properties, dropping cash flows lead to losses that force property auctions and a downward spiral of home prices is the result.

Prices are driven price down, developers are stuck with new homes and banks are bulging with foreclosed properties. So who are the largest sellers of homes today? Most likely Countrywide, US Bank, Deutsche Bank, Wachovia, Downey Savings and Loan, Wells Fargo and Washington Mutual.

As a matter of fact, the median sales price of a bank-owned property ranges between 15% to 45% lower than the median listed price of homes for sale in the same neighborhood.

So how far and how long will this go?

Well I’m no economist and I don’t have a crystal ball, but what I can share with you is that statistics indicate that a normal recession is around 10 months (but who knows what normal is). It seems that predictions are running everywhere from 10 to as many as 24 months before we turn the corner.

This is largely founded on the fact that we already have a national “house-for-sale” inventory of around 11 months. U.S. foreclosure filings jumped 57% and bank repossessions are up 129% from a year ago. We can expect some 2.5 million foreclosed properties to be on the market this year and in 2009.

In short - too much stock and too few buyers.

Add to that are mortgage rates, the mother’s milk of the housing market, that seem to be on the rise – both internationally and locally. It would seem that “The 2007 Hangover,” which I wrote about toward the end of 2006 in my annual Swanepoel Trends Report, will provide the industry a headache well into 2009 and beyond.

On another note, the Mortgage Reform and Anti-Predatory Lending Act of 2007 bars banks from steering any consumer to a loan for which the consumer lacks a reasonable ability to repay, does not provide a net tangible benefit or has predatory characteristics. A predatory loan has never been defined and will surely mean, to a trial lawyer, any loan that a marginal buyer cannot afford anytime in the future. Analysis performed for the Consumer Mortgage Coalition concluded that because of the subjective standards the House bill "will likely generate significant litigation" and lenders will "rarely, if ever, be able to dispose of even frivolous lawsuits".

So, during these complex and difficult times, this legislation adds a further incentive for banks to stop lending to all but the best qualified individuals. Therefore it would appear that for the foreseeable future, low-income home buyers without stellar credit scores will find it nearly impossible to get any home loan - which compounds the downward pressure on home values.

As if this isn’t already enough “bad news” another growing concern is the rapid build up of household debt in the U.S. According to Business Week, U.S. households now owe almost $14 trillion, nearly equal to the annual output of the U.S. economy. Regrettably these two are interwoven and one financial crisis feeds off the other.

On the optimistic side: The current housing recession, sub prime mess and the foreclosure explosion won’t last forever. The years 2006 – 2009 will unquestionably leave a scar, but the American dream of owning your own home will return in all its glory. We may have to wait another year or more but keep the faith, real estate will once again create wealth and fuel the economy.

Till then, be astute, knowledgeable and remain positive.

7:14 PM - Jun. 27, 2008 - comments {0} - post comment

How to build "green"

Q. What was the motivation behind your becoming interested in green building?
A. I had known about green building for quite some time and got involved in green remodeling in 2001. From the beginning, it struck me as the only way to build. From that point forward, I felt that it was my mission to educate individuals in the building/remodeling industry as well as consumers and agents about the benefits of green building over traditional building and remodeling. In 2004, I became involved with EarthCraft House, a non-profit organization dedicated to green building and living and I headed their green remodeling committee. The pilot projects that I worked on for this committee were the turning point in my career.

Q. What are some of the features that make a home green?
A. There are four main precepts behind the process of building green. These four guidelines include that the home be energy efficient, healthy for the occupant, durable and resource efficient. All of these concepts interrelate, as a lot of things that make a home energy efficient will make it healthy and resource efficient as well. Green building is a fairly well-established building principle that anyone can employ with the proper training, and almost any building can be made green. The key thing to remember is that green building is not about products and materials, it is a process.

Q. What are some of the advantages to having a green home over a traditional home?
A. First and foremost, green homes are very healthy. Many individuals who move into a green home find that their allergies go away all together or severely diminish. The houses are comfortable, quiet and cleaner as well. In addition, green houses don’t get hot and cold spots that are typical in most traditional homes and they use a lot less electricity gas. In the end, fewer materials are used and wasted.

Q. What do you see in the future of green building?
A. There is no doubt in my mind that everything will be green, because it is where we have to go especially in order to protect our environment. Even today, most green energy codes are strong, but most builders don’t enforce and build to them. The movement is still on the trendy side right now, but it will continue to pick up speed and penetrate more of the market. As it becomes more understood, people will realize that they don’t have to spend more and there is no downside to building green.

7:08 PM - Jun. 25, 2008 - comments {0} - post comment

Teaching your kids financial responsibility

“Kids are surprisingly aware of what’s going on in the world,” says Tyson, author of the new book Let’s Get Real About Money! Profit from the Habits of the Best Personal Finance Managers (FT Press, December 2007, ISBN-10: 0-1323416-1-1, ISBN-13: 978-0-1323416-1-5, $19.99). “And if they don’t know that times are a little bit tough and Mom and Dad are having to watch their spending, it’s time to tell them. Sheltering kids from financial realities does them no favors.”

Indeed, the opposite is true, says Tyson. A good grasp of personal finance is one of the most valuable life skills a person can have. And while previous generations may have been raised with the constant admonishment that “money doesn’t grow on trees!” too many of today’s parents neglect that lesson. It’s time to change that-and the economic slowdown we’re in now provides a great incentive for doing so.

“In many ways, a slower economy can be a blessing in disguise,” admits Tyson. “It leads families to make a budget and stick to it. It forces them to be conscious about how they handle money. That’s good for kids. It shows them how the world is supposed to work.”

Ready to get started? Tyson offers the following helpful hints:

1. Realize that kids learn what they live. It may sound like common sense, but you-Mom and Dad-are your kids’ most influential teachers. When you ring up a barge-load of credit card debt, take out exorbitant mortgages or car loans, and fail to save anything, that’s what your kids come to see as normal. If you are modeling unhealthy financial habits, you can’t realistically expect your kids to “do as I say, not as I do.”

“Adults who live it up now and fail to save for the future can expect to raise children who are accomplished spenders and poor savers,” notes Tyson. “Be honest with yourself about the powerful money messages you’re sending your kids. If your financial habits are poor, overhaul them now. You owe it to your kids.”

2. De-program them. Kids are constantly bombarded with information about what things cost, whether it’s the fancy sports car they like or the wardrobe of their favorite athlete or actor, not to mention the 40,000 commercials that the American Academy of Pediatrics estimates the average American child sees each year. What they aren’t bombarded with is knowledge on how to manage money effectively. And while schools are increasingly incorporating money issues into the existing curriculum, the broader concepts of personal financial management still aren’t taught. Frightening though it may be, some schools rely on free “educational” materials from the likes of VISA and MasterCard!

“These credit card titans provide materials that implicitly and explicitly support carrying consumer debt as a sound way to finance significant purchases and living expenses,” says Tyson. “In fact, VISA and MasterCard school-supplied resources endorse spending upward of 15 to 20 percent of one’s monthly take-home income to pay credit card and other consumer debts! Explain to your kids that such spending puts a lot of money directly into the credit card companies’ pockets, so of course they’re going to offer that advice…but that smart people don’t listen to it.”

3. An allowance is a great teaching tool. You don’t have to break child labor laws to find great ways to help your kids earn their allowance rather than just have it handed over to them. A well-implemented allowance program can mimic many money matters that adults face every day throughout their lives. From recognizing the need to earn the green stuff to learning how to responsibly and intelligently spend, save, and invest their allowance, children can gain a solid financial footing from a young age..

“A great time to start is when your kids reach the five-to-seven age range,” says Tyson. “Start them on some household chores, and explain to them that they will be paid for their work. Of course, the size of the allowance should depend, in part, on what sorts of expenditures and savings you expect your child to engage in and, perhaps, the amount of ‘work’ you expect your child to perform around the house. I recommend paying $0.50 to $1.00 per year of age. So, for example, a six-year-old child would earn between $3 and $6 per week.”

4. Start them saving and investing early. It’s never too early to start saving, and the sooner you can instill the importance of saving money into your kids the better. After they start earning an allowance, have your kids save a significant portion (up to half) of their allowance money toward longer-term goals, such as college (just be careful about putting money in children’s names as doing so can harm college financial aid awards). Tyson recommends that children reserve about one-third of their weekly take for savings. As they accumulate more significant savings over time, you can introduce the concept of investing.

“Rather than trekking down to the boring old local bank and putting the money into a sleepy, low-interest bank account, I prefer having kids invest in mutual funds,” says Tyson. “Another option is for kids to buy individual stocks. Kids can learn more about how the financial markets work and understand stocks better by sometimes picking individual stocks rather than using funds. Just be careful to keep transaction fees to a minimum and teach your kids how to evaluate a stock and its valuation and not simply buy companies that they’ve heard of or that make products they like. The money they are able to save and invest will be a huge help to them later on in life.”

5. Reduce their exposure to ads. The primary path to reduced exposure to ads is to cut down on TV time. When kids are in front of the tube, have them watch prerecorded material. You can direct the television viewing of younger children, in particular, toward videos and DVDs. And for older kids, if you use digital video recorders (DVRs), such as TIVO, you can easily zap ads. But when an ad does sneak under the radar and set the kids to begging, address it. Explain to your kids that there’s never a good time for frivolous impulse spending-but it’s especially harmful when money is tight.

“Invest the necessary time to teach and explain to your kids that the point of advertising is to motivate consumers to buy the product by making it sound more wonderful or necessary than it really is,” says Tyson. “Also explain that advertising is costly and that the most heavily promoted and popular products include the cost of all that advertising, so they’re paying for it when they buy those items.”

6. Find entertaining ways to teach good money habits. You’ll probably be facing an uphill battle when trying to get your kids to sit down and learn about personal finance. That’s why it’s so important to find entertaining ways to instill good financial habits in them. For younger kids Tyson recommends age-appropriate books like The Berenstain Bears Get the Gimmies. For late-elementary-school-aged kids, Quest for the Pillars of Wealth by J.J. Pritchard is a chapter book that teaches the major personal finance concepts through an engaging adventure story. You could also get them a subscription to Zillions, a kids’ magazine from the publishers of Consumer Reports, which covers money and buying topics.

“Another great opportunity to teach your kids about personal finance and get to spend quality time with them in the process is through board games,” suggests Tyson. “Monopoly and Life are two games that are very effective at getting your kids to think about the best way to manage money and plan whether they should spend or save.”

7. Teach them how to shop wisely. Family shopping trips, whether for groceries or something else, are likely to be your kids’ first encounter with spending. They’ll see you make decisions based on what the family needs, maybe see the occasional coupon used, and will observe how you pay. These trips are a great time to teach them lessons about money.

“Explain that being a smart consumer requires doing your homework, especially when buying more costly products,” says Tyson. “Teach your kids the value of product research and comparison shopping. Demonstrate how to identify overpriced and shoddy merchandise. Finally, show them how to voice a complaint when returning defective products and go to bat for better treatment in service environments, two additional tasks that are part of being a savvy consumer.”

8. Introduce the right and wrong ways to use credit and debit cards. Those plastic cards in your wallet offer a convenient way to conduct purchases in stores, by phone, and over the Internet. Unfortunately, credit cards offer temptation for overspending and carrying debt from month to month. Teach your kids the difference between a credit and debit card, explaining that debit cards are connected to your checking account and thus prevent you from overspending as you can on a credit card.

“Explain to them that credit cards should be used sparingly and then practice what you preach,” says Tyson. “Wean yourself off of using your credit card, and tell your kids why you’ve decided to do so.”

9. Encourage older kids to get a job. An allowance doesn’t have to be the only way for your kids to earn money. Your child’s initial exposure to the work-for-pay world can start with something as simple as a lemonade stand. Depending on age, he or she might do yard work for neighbors or offer babysitting services. And the fact that we’re in a recession makes it all the more appropriate for older kids to “help out” by getting a part-time job-especially to fund unnecessary purchases like DVDs or cool clothing.

“I had an extensive newspaper route for a number of years, and I cut lawns and did other yard work during high school and college summers,” says Tyson. “By holding down such jobs, kids can learn about working, earning, saving, and investing money. It also provides welcome relief for parents to not continually be the source of spending money. Working outside the home does raise some safety issues, so by all means be involved in ensuring that your child has a safe work environment.”

7:03 PM - Jun. 23, 2008 - comments {4} - post comment

Why are you late again?

“Although flexible schedules are more common in the workplace these days, it is still important for employees to be mindful of their arrival times,” said Rosemary Haefner, vice president of human resources for CareerBuilder.com. “Consistently showing up late can affect how others in the company view your work ethic and discipline, as well as affect your productivity.”

While 43% of hiring managers say they don’t mind if their employees are late as long as their work is completed on time with good quality, others are much stricter, and would consider terminating an employee if he or she arrives late several times a year.

When asked to identify the primary cause for coming in late, more than 32% of workers claimed traffic was the culprit. Falling back asleep was the reason cited by 17%, while 7% pointed to a long commute as the main cause. Other popular reasons included getting kids ready for school and day care, forgetting something at home and feeling sick.

While the majority of hiring managers believe their employees’ reasons for being late to work, more than 27% say they are skeptical of the excuses.

Hiring managers provided the following top 10 examples of the most unusual excuses employees offered for arriving late to work:

- While rowing across the river to work, I got lost in the fog.
- Someone stole all my daffodils.
- I had to go audition for American Idol.
- My ex-husband stole my car so I couldn’t drive to work.
- My route to work was shut down by a Presidential motorcade.
- I wasn’t thinking and accidentally went to my old job.
- I was indicted for securities fraud this morning.
- The line was too long at Starbucks.
- I was trying to get my gun back from the police.
- I didn’t have money for gas because all of the pawn shops were closed.

Insights for Managers about Tardiness

Other jobs can be successfully performed with very flexible hours.

Some jobs require adherence to a specific schedule in order to maintain quality service levels and precise hours of operation. Other jobs can be successfully performed with very flexible hours. Whether you tend to be strict or flexible about schedules, frequent tardiness or lack of reliability should not be ignored. Managers who have frequently tardy employees should do the following:

Candidly discuss the tardiness issue with the employee, seeking the root cause. The employee may have personal scheduling issues that can be worked around with reasonable schedule adjustments. Employees who have problems with oversleeping or unanticipated traffic delays may need help understanding the importance of strong personal discipline. In talking with these employees, also inquire about their level of satisfaction with their current role. Frequent lateness can sometimes be an indicator of job dissatisfaction.

Evaluate the current policies and consider trying flextime, which can be implemented with various levels of flexibility. One recommended approach is to set “core business hours” and a weekly time requirement.

For example, require employees to be in the office between the core hours of 9:00 a.m. and 3:00 p.m. (excluding lunch), while working a total of 38 to 45 hours per week. This kind of policy, which lets employees set their own schedule to avoid traffic or drop kids off at school or day care, may reduce stress in the workplace.

When using flextime, it is usually best for managers to clearly define expectations and use measurements based on accomplishments and deadlines, rather than specific hours.

6:53 PM - Jun. 21, 2008 - comments {0} - post comment

10 Red Flags for Home Buyers

FrontDoor.com’s Top 10 Red Flags for Home Buyers

1) Mass Exodus from the Neighborhood

Don’t let a home’s curb appeal keep you from glancing down the street. Are there several other homes for sale? Are nearby businesses boarded up or vandalized? Get the scoop from the neighbors. If everyone else wants to leave the street, maybe you should, too - before you’re stuck with a bad investment.

2) Mediocre Maintenance

Three layers of roofing and gutters with plants growing in them are signs the owners aren’t big on maintaining their home. What else did they neglect?

3) Foundation Failures

Check out the yard grading. If the yard slopes towards the house, it could cause water to run down the foundation walls or into the basement, which will be costly to repair. Scour the foundation for damage. Bulges or cracks bigger than 1/3 inch can mean the house has serious structural issues.

4) Bad Smells - Inside or Outside

Take a big whiff of the air inside and outside the house. Do you smell anything funky? If you can’t smell anything but the huge baskets of potpourri all over the house, this could be a red flag.

5) Faulty or Old Wiring

While you’re probably not an electrician, make sure all the switches and outlets in the house function properly. Flickering lights, circuits that don’t work and warm or hot outlets or faceplates are all symptoms of wiring problems.

6) Fresh Paint… on One Wall

New paint can really spruce up drab walls, but it can also hide bigger problems, like water damage, mildew or mold. If the room smells strange or if you see stains or saggy walls or ceilings, have an inspector look for mold and leaks.

7) Locked Doors and Blockades

Ask about any rooms that are “off limits” during your home tour, and arrange to see them later if you’re interested in the house.

8) Foggy or Non-Functioning Windows

Check for water in between double-paned windows and make sure all the windows are functional.

9) Structural Walls or Floors have been Removed

Sure you love the open floor plan, but was the house always open or did the homeowners renovate? If they removed a load-bearing wall without adjusting the framing, it can shift weight to other parts of the house. Hire a structural engineer if you think any renovations are questionable.

10) Bugs!

No one wants a house with a pest problem - be it roaches, mice or worst of all, termites. Be on the lookout for unwelcome creatures as you tour the house. Even if no foes pop out while you’re there, consider a separate termite inspection if you’re thinking of purchasing the property.

The Bottom Line

Always get a professional inspection for the house you choose to buy. Skipping a home inspection is not a good way to cut costs. You’ll end up paying more in the long run when problems arise.

6:50 PM - Jun. 19, 2008 - comments {0} - post comment

Foreclosure solutions

Do you remember when the iPhone first came out?  About a week before it hit store shelves, an on-line sports book published odds claiming that 1 in 20 shoppers would be trampled to death while trying to get one.  Coincidentally, those are also the odds in any given week that someone will be behind on their mortgage payments.  There are solutions according to Scot Kenkel, President and CEO of Success Learning Institute, LLC, a training company.

 Are you one of them? 

 If you are, you realize that the stench of fear permeates your being, as you approach the unfamiliar territory of foreclosure.  You don't have to be a bum or a deadbeat to get into this position.  It can be as simple as missing a few days of work or having a mortgage payment or two wind up in the Dead Letter File at the post office.  Either way, your payment’s late or you're in deep doo-doo with your lender.  Now your lender's threatening you with the Big “F” -- foreclosure.

 The last thing you want or need is to face the stigma of foreclosure, so you're seeking any port in a storm.  The best way to get out of this mess – if you can come up with the cash – is reinstatement.  The concept is simple:  Pay your lender what you owe. In return, your lender will call off the hounds and allow you to continue with your mortgage contract as if nothing has happened.  This could be a practical and doable option if your problem is a short term financial hiccup.  

 In practice, however, it could be a pretty tall order because you'll be required to catch up your payments – with late fees – in one single lump sum payment.  Most lenders stipulate in your contract that partial payments won't be accepted.  While it's possible to pay less than the full balance of your back payments, it isn't as likely an outcome.  If you can work this out, you'll need to get it in writing and the only chance you have of making it happen is if you can satisfy the lender that the conditions that led to your being late won't be repeated.  If you're able to convince your lender to accept a lesser amount, it will likely take an act of Congress and your first born child.  In addition, this sort of an arrangement will take some time to negotiate – time you probably don't have.

 When you're in this precarious financial position, you're at your lender's mercy.  It's just you and your lender.  Instead of being intimidated or bullied into making a rash decision that could have a dramatic impact on your financial future, you should enlist the help of a trained professional, someone who will be in your corner, looking out for your best interests – not the bank's. 

 I'm talking about a real estate professional.

 By calling a trained real estate professional, you'll get sound advice from an objective advocate that will act as a counterbalance to the power of your lender.  This advice won't cost you an arm and a leg.  As a matter of fact, it won't cost you a thing.  Then you can decide for yourself whether reinstatement of your mortgage is the best course of action for you.  Then maybe you can consider getting an iPhone – but only if you're willing to run the risk!marketing.

3:10 PM - Jun. 17, 2008 - comments {0} - post comment

Time Management and You

Time is money….there are only 24 hours in a day and everybody is allotted the same amount. How time is managed makes the distinction between true success and mediocre performance according to Tom Ninness of Cherry Creek Mortgage in Denver and President of Summit Champions. Big Ben in London has a poignant quote regarding the importance of time inscribed at the base of the clock tower. It reads: “No minute lost ever comes back again. Take heed and see you do nothing in vain.”

How do you use your time? Is your day comprised of rote activities, meaningless contacts and time wasters, or are you diligent in using each day as efficiently as possible? The importance of staying focused and using time wisely boils down to the small actions that can be taken throughout the day.

Reviewing the “list” before going to bed helps to organize your priorities for each day. By taking a few minutes in the evening to outline and prioritize the next day, you allow your mind to wind down and guarantee a better night’s sleep. Creating that time to permit a “brain-dump” before heading to bed, allows your whole being to be more relaxed and benefit with better sleep. Develop and maintain a list of specific things that will need attention each day. Keeping a notepad and pen by your bedside can help log ideas that occur during the night. Checking off details on the list daily offers a level of satisfaction and will enable you to accomplish more in less time. Aim to accomplish the most important difficult task/project to be completed early in the day.

Examine the month ahead and anticipate what obstacles may be lurking. Are there big projects or opportunities that need extra planning and time blocking? Anticipate what’s on the calendar. Sales appointments that are the bread and butter of most businesses and need advance preparation. Often the worse appointments are those that were not prepped in advance. “Winging it” should never be a part of an appointment.

Procrastination is a time killer. Self-talk is defined as what you say or think to yourself, either silently or aloud. Positive self-talk involves thoughts you intentionally choose to think because of the results they will produce in your life and business. Motivate yourself by being your biggest supporter!

What is time worth? Refine your day into doing the activities and tasks that will create the kind of income that your time is worth. Eliminate the non-dollar productive activities. Examine what your hourly rate is and focus on the activities that produce that rate, consistently.

Creating uninterrupted time to concentrate on the high priority items or activities that will improve business is the most elusive. For sales professionals, prospecting is the number one action for success. Eliminate all distractions and interrupts for four of the eight hours a day and a successful sales career will be secure. Place your phone calls on hold, offer a voice mail recording identifying specific times when you return calls, and outline time lines for specific activities, such as prospecting, paperwork and calls outside the office.

Take time to periodically examine your life and business plan. If you haven’t developed these plans, do so. A focused plan allows inspection of each project, person or activity, and the determination of the time and effort associated with it. Align purpose with your life and business model. Learn the advantages of using OPE-Other Peoples Energy and Expertise and delegate responsibilities whenever possible. Your time is important, as well as the use of capital and talents.

Time is a statement of starting, leaving or arriving and is what's expected. To be slightly early sends a message of purpose, courtesy and respect - to others and yourself - and assures better results over time.
To be even one minute late (consistently or not), implies a message of rudeness.

Time is serious. Respect time. Be organized, be prompt, respect the time of others and develop continuity within each day; the positive impact will improve business, and create trust.

Ralph Waldo Emerson said, "Activity is contagious." Have an impact. Enjoy great results. Embrace the early start. Go long. Inspire yourself and others.”marketing.

3:05 PM - Jun. 15, 2008 - comments {0} - post comment

Keep your PC running smoothly

Every PC user has been there. One day, things are great – your programs open swiftly and you are able to navigate the Internet with ease. But when you turn on your computer the very next day, you quickly realize that everything has changed for the worse. Here's the good news: these issues are very preventable. The following are our eight favorite user-friendly tips for keeping your PC clean and performing at an optimal level.

We'll start by saying that if you are an IT person, or someone who really knows PCs, much of this information will be stuff you already know. This article is not intended as a definitive work on PC maintenance. Instead, this is meant for people who use a computer, but who need a few pointers to keep it performing well.

1. Purchase a Quality Antivirus Program
Before purchasing a program of this nature, it is important to make sure that in addition to virus protection, it also protects against both spyware and adware. While viruses have the ability to take down a computer, the latter are capable of slowing it to a snail's pace and compromising your personal information.

While there are several quality antivirus programs on the market, two that we keep hearing about are Trendmicro (available at www.trendmicro.com) and Spysweeper (available at www.webroot.com). Whatever product you choose, make sure you do so before surfing the Net, or opening emails. Also, be sure to keep your software current by downloading any updates, and don't forget to renew your subscription every year.

2. Perform Your Windows Updates
Your computer will periodically instruct you that there are available Windows updates. It is important to perform these updates, as many will pertain to both computer security and overall operations. You can also set Windows to automatically update for you.

It's important to note, however, that some updates may have a negative result. This is because any time a change is made within your computer's operating system, it carries a risk of causing problems. The solution here is to keep track of all the updates you do. It will definitely help in troubleshooting any problems that may arise.

3. Utilize Your Windows Firewall
Current versions of Windows come equipped with a personal firewall, or a program that protects your personal network from any outside networks. It is highly important to make sure that this is turned on. To do so, simply click your start menu. Now click the "run" button and type firewall.cpl. Now click "OK." On the "General" tab, select "On," and then click "OK."

4. Make Sure You Have Plenty of RAM
Not to be confused with hard drive space, RAM is the memory your computer uses to store programs and data that you are currently working on. Here's what normally happens.

You buy a computer thinking that you don't need the biggest, fastest, or most powerful one on the market. Chances are you probably don't. However, what many people fail to consider is their potential to outgrow a computer. Considering the thousands upon thousands of great computer programs on the market, it's not hard to do. Run a few too many programs on a computer with insufficient RAM and it will definitely run slow.

There is only one way to fix this problem, and the good news is that it's fairly easy and cheap. Go to a local computer store, preferably the one where you bought your computer, and tell them you need to purchase more RAM. The cost will depend on the amount of RAM you already have, as well as the amount you need for an appropriate upgrade. In terms of installing it, there should be no problem having it done at the store.

5. Uninstall Any Unused Programs
Now that you've learned about the importance of RAM, you can understand why it's crucial to keep only the programs you use. To delete any unused programs, click "start" and then click on "Control Panel." Find the icon that says "Add or Remove Programs," and click it on. Scroll down to find the appropriate program, and have it removed. Your computer will prompt you with instructions.

6. Perform Regular Housecleaning
Regularly deleting your temporary Internet files, cookies, and Internet history will do wonders for maintaining a quick and clean PC. To do so, click "Tools" on the taskbar of your Internet browser. Scroll down and click on "Internet Options." From there, select what you would like to delete.

Another bit of housecleaning one should regularly perform is emptying your trash bin. It's called trash for a reason, so you need to deal with it in the same way!

7. Defragment (Defrag) Your Hard Drive
Defragmenting your hard drive may be the single best thing you can do to keep your computer running optimally. Here's why:

As you add programs and data to your computer, the information in question takes up blocks of actual physical space on the hard drive. Imagine these blocks of information piling up linearly, one right after another. Whenever one of those blocks is deleted, a blank space is created. Build up enough of these blank spaces and it causes your computer to take complicated paths in order to find information. By defragmenting your computer, you remove the blank spaces and create a more efficient pathway.

In order to perform a "defrag" on your hard drive, start by double-clicking your "My Computer" icon. Next, right-click on the "C-Drive" option. Click "Properties," "Tools," and then "Defragment Now." Depending on how fragmented your computer's hard drive is, some system defrags can take several hours, and during that time, you cannot use your computer.

8. Use an Email Service with a Good Spam Filter
The ability for an email service to effectively filter out insidious spam emails is highly important when it comes to minimizing your risk. Some spammers are nothing but scammers; Internet grifters, if you will. Others are bad guys posing as good guys for the purposes of either tracking your online activities for marketing purposes, or looking for ways to steal your information and identity.

Aside from regularly cleaning out your email spam file, we also recommend never giving personal information via an email. A very common trick used by these "bad guys" is to send emails pretending to be your bank. The email will request you to update certain information and provide a link for you to do so online. After clicking on the link, you are taken to a website that may look like your bank's website, but it's not. If you provide the information, they've got you. If you ever do need to update information online, go directly to the company's webpage by way of your Internet browser.

You can now consider yourself well informed on the subject of keeping your computer clean and running quickly. But that's not enough. You should look at this article as a call to action. Trust us when we say that by taking a proactive approach with your computer, you will save yourself a lot of time, money and frustration.

2:57 PM - Jun. 13, 2008 - comments {0} - post comment

Consider travel insurance this summer

It may seem a bit early, but believe it or not, summer is right around the corner…time to start thinking about that family vacation getaway.

When planning your fun-filled itinerary, the last thing you want to do is worry about any financial loss that might occur as a result of a missed flight, an injury or illness, lost baggage, or any other unforeseen incident. To ensure your peace of mind while away from home, many companies provide several different types of traveler's protection plans to help ease the burden.

Without insurance, a traveler can lose nonrefundable deposits and prepayments that can add up to hundreds, or even thousands, of dollars. A good, comprehensive travel insurance plan will often reimburse a traveler for all pre-paid, nonrefundable expenses for a covered loss.

The cost of travel insurance is based, in most cases, on the value of the trip and the age of the traveler. Typically, the cost is 5-7 percent of the trip cost. Now, you may think, "I'm paying so much for this vacation already, why should I pay even more for something I may not even need?" True, but then, why take your car in for a tune-up when it's running smoothly? Why go to the dentist for a routine check-up if you don't actually have a pain in your mouth? Like most every other type of insurance, be it automobile, medical, or homeowner's, you hope you never need to use it. But it sure is a relief to have it when you do need it, right? Well worth it, when you consider the alternative.

Here are some general types of coverage you should consider before heading out for this summer's vacation:

Travel Arrangement Protection
This covers you in case of trip cancellation, interruption, or travel delays (these can include inclement weather, lost or stolen passports, quarantine, hijacking or natural disaster).

Medical Protection
Just because you have health insurance at home, the moment you set foot on foreign soil or even set sail on a cruise, many health plans are considered null and void, so be sure you get travel medical protection to cover emergency medical expenses, such as illness and accident expenses, and emergency medical transportation to the nearest medical facility.

Baggage Protection
Not only do you want coverage for lost, stolen or damaged baggage, but many plans offer reimbursement for the purchase of essential items if baggage is delayed.

Worldwide Emergency Assistance
If traveling outside of the country, make sure you purchase a policy that covers international emergencies. This can include emergency cash transfer assistance, legal assistance, and lost travel documents assistance.

If you make your travel arrangements through a travel agent, be sure to ask them about the different types of travel insurance they recommend for your trip. If you book your travel plans online from reputable companies like Travelocity or Expedia, these companies will offer you insurance through their website. Or, alternatively, you can contact companies like AIG Travel, and purchase a wide variety of plans through them.

So before embarking on your next trip, do your homework. Talk to your travel agent about all the different insurance options available to you.

Have a happy and safe vacation!

2:39 PM - Jun. 11, 2008 - comments {0} - post comment

11 Tips for Space Planning

SmartDraw.com, makers of SmartDraw, a program that automates the process of creating business graphics, released its list of “Top Tips for Effective Space Planning.” SmartDraw, a popular business graphics software, is downloaded by more than 2 million people every year and is widely used to create polished, professional looking space plans and floor plans for various facilities, homes, and offices.

1. You can save yourself a lot of time and trouble by taking careful measurements and thinking through the following issues before you start drawing. When measuring existing spaces, lay your measuring tape flat on the floor and measure room dimensions in several places, especially where furniture will be a tight fit. Don’t assume your walls are parallel.

2. Before laying out furniture, look for projecting windowsills, and note the location of electrical receptacles, light switches, vents and thermostats.

3. When placing a desk, ask yourself, “What do I want to be looking at when I sit there?”

4. When planning an office, first determine whether the occupant’s back will be toward the door. Some people feel very strongly about this. Other design decisions will flow from this basic choice.

5. To reduce glare, try to avoid having computer monitors directly facing windows.

6. Leave enough empty space in front of filing cabinets to fully extend the drawer, plus at least 18 additional inches if the drawers will be accessed by a person standing in front of them.

7. Allow adequate working space at desks or cubicles. The distance from the working side of a desk to the nearest wall or furniture should be at least 42 inches (and most people find 54 or 60 inches more comfortable).

8. The walkway between a piece of furniture and a wall should be at least 30 inches in a residential space (36″ is preferred). In a public space it should be at least 36 inches (42″ is preferred).

9. To get a feel for the width of a walkway before placing furniture, put a tape line on the floor to see how different dimensions would feel.

10. When placing furniture on a residential plan, remember that most furniture will actually sit 2 or 3 inches from the wall.

11. Don’t line all the furniture up along the walls. Break up spaces by placing pieces out in the room. Setting rugs, sofas, or other furniture at angles can help avoid an overly rigid feel.

2:34 PM - Jun. 7, 2008 - comments {0} - post comment

How is your credit affected by a short sale?

Sellers will take as big a hit on their credit by going through foreclosure as giving the lender a deed-in-lieu of foreclosure according to Tim and Julie Harris, founders of Harris Real Estate University.  Points lost on a FICO score are as follows:

Foreclosure or Deed-in-Lieu of Foreclosure
Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.

Short Sale
The effect of a short sale on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status. Which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

The effect on a consumer's credit report—foreclosure vs. short sale—is the difference between being hit by a train or a bus.

Here's why:

Waiting Period Before Buying Another Home

Foreclosure or Deed-in-Lieu of Foreclosure
A seller who wants to buy another home after foreclosure will end up waiting about 36 months before a lender will offer any kind of interest rate that makes sense.

Short sale
A notation on a consumer's credit profile of 'settled for less than owed' (short sale) precludes the consumer from obtaining an institutional loan for 24 months, depending on the lender's program and regardless of FICO score. Fannie Mae guidelines require 24 months seasoning, and there's no way to get around this.
   
Short Sale/Foreclosure Deficiency Judgments

The bad news is a seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In California, purchase money loans are not subject to deficiency judgments; however, hard money loans, equity loans and refinances are. Some other states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.

The lender has sole discretion whether to pursue a deficiency judgment in those instances when the judgment is permitted. To determine whether a pending foreclosure or short sale is subject to a deficiency judgment, talk to a real estate lawyer.

2:22 PM - Jun. 5, 2008 - comments {0} - post comment

Spring has sprung...

...and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? - three-quarters of Americans engage in spring-cleaning. In fact, their surveys indicated that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.

But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by www.medicinenet.com, that can help make your home healthier and safer:

Thoroughly dust your home. Also clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet. Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement. Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need. Note: You may need to take these items to a hazardous waste drop off center.
Inventory under your sinks and around your house. Dispose of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
And make it easy on yourself - take it one room, one cleaning task at a time. You'll be more likely to accomplish more if you tackle each spring-cleaning project separately. And that's great advice...any time of year!

2:08 PM - Jun. 3, 2008 - comments {0} - post comment

An idea to help the foreclosure crisis

The CMPS Institute has just sent Congress a detailed proposal calling for government-backed loans to homeowners of up to 20% of the homeowner’s current mortgage balance.”Negative homeowner equity is the one root problem that Congress can help solve,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “If homeowners have no incentive to keep up their mortgage payments, the problems in the housing markets could continue to spread and plunge our country into a deep recession,” continued Nicholas.

This proposal was initially floated by economist Martin Feldstein, chairman of the Council of Economic Advisers under President Reagan, professor at Harvard University and president/CEO of the National Bureau of Economic Research. “A voluntary loan-substitution program could reduce the number of defaults and dampen the decline in house prices - without violating contracts, bailing out lenders or borrowers, or increasing government spending,” said Feldstein, who helped review the comments sent to Congress by the CMPS Institute.

About 6% of all mortgage borrowers are behind on their payments, and 17% of all sub-prime borrowers are behind on their payments. Approximately 10% of all US mortgage borrowers owe more on their mortgages than the value of their homes, thus making their mortgages “unrefinanceable” for the most part.

“Some of the more aggressive proposals before Congress would drive the mortgage industry toward nationalization, while some of the more limited proposals would do little or nothing to solve the crisis,” Nicholas said.

“This entire situation can be greatly remedied by reducing homeowners’ mortgage balances to the point where they are no longer in a situation of little or no equity,” said Nicholas.

Doing so would give all homeowners incentives to keep up their mortgage payments as property values continue to stagnate or decline. Distressed homeowners would be empowered to refinance their otherwise “unrefinanceable” mortgages into more affordable loans without an increase in their overall debt level. Property values will stabilize, consumer confidence will rise to shore up the economy and taxpayers will avoid incurring unnecessary and excessive risk.

6:01 PM - Jun. 1, 2008 - comments {0} - post comment

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