Saturday, April 9, 2011
Wednesday, March 30, 2011
Real Estate: GOLDen Opportunity of This Decade
by Steve Harney on March 30, 2011
Everyone wants to comment on the current real estate market. They want to talk about how now is not the time to buy a home. Some even argue owning a house has never been a great investment. Most say it will be a long time before real estate again begins to appreciate. It all sounds so familiar to me. It was just a decade ago that many made the same arguments about gold as an investment.
Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People ran from gold as though it was a plague.
Lord William Rees-Mogg, the current Chairman of The Zurich Club, in 1997 said:
“No investment has been so thoroughly exploded as gold; most people think that there will no more be another gold boom than there will be another boom in tulip futures in The Netherlands.”
Two years later in 1999, Don Wolanchuk author of the Wolanchuk Report explained:
“Everybody hates gold. You can’t have a bottom until everybody is out. And everybody is out of the gold sector.”
Everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,400 an ounce in the next twelve years. I see the same situation with real estate today. I am not predicting that real estate will see the same levels of appreciation. I do believe however that the market will rebound strongly. Those who continued to believe in gold as an investment were rewarded.
Those who continue to believe in real estate as a sound investment will also be rewarded.
Here is what Adam Hamilton wrote in October 2000 in an essay titled Is Gold Dead?
The road for gold investors has been long and parched in the last five years. They have wandered through a seemingly endless desert, occasionally tempted by what proves to be an illusory mirage. Many have fallen beside the sun-cracked path, their white bones picked clean by buzzards and gleaming in the sun. Nevertheless, a brave contrarian core continues to march forward. They have studied history, currency, gold, investments, economics, and finance. They understand the timeless value of gold, the cyclical nature of the markets, and the vagaries of human psychology. They realize it is darkest before the dawn, and the journey most difficult right before the homestretch is reached. Gold is in an INCREDIBLE position, and it will have its day. Nothing goes up in price forever, and nothing goes down in price forever. Investments are cyclical. Gold is NOT dead, it is simply biding its time, waiting for its next earth-shattering mega-rally. The spoils that go to the few remaining gold investors when that day inevitably arrives will be fantastic. The stunning victory will quickly blot out the painful memories of the long struggle…
You could replace the word ‘gold’ with the words ‘real estate’ throughout this essay and it would apply today.
Tuesday, March 29, 2011
Cirque Du Soleil is in San Diego!
Cirque du Soleil is pleased to announce that its newest arena show, Quidam, will perform in San Diego from March 30 – April 3, 2011 at the Valley View Casino Center (formally the San Diego Sports Arena) for eight performances only. Quidam tickets are available now at cirquedusoleil.com/quidam or 1-800-745-3000.
Young Zoé is bored; her parents, distant and apathetic, ignore her. Her life has lost all meaning. Seeking to fill the void of her existence, she slides into an imaginary world—the world of Quidam—where she meets characters who encourage her to free her soul.
Quidam had its world premiere in Montreal under the Big Top in April 1996. Since that time, the production has toured on five continents and been experienced by millions of people. In December 2010, Quidam will embark on a new journey, performing the same captivating production, but now in arenas throughout North America. The international cast features 52 world-class acrobats, musicians, singers and characters.
Young Zoé is bored; her parents, distant and apathetic, ignore her. Her life has lost all meaning. Seeking to fill the void of her existence, she slides into an imaginary world—the world of Quidam—where she meets characters who encourage her to free her soul. Quidam: a nameless passer-by, a solitary figure lingering on a street corner, a person rushing past and swallowed by the crowd. It could be anyone, anybody. Someone coming or going at the heart of our anonymous society. A member of the crowd, one of the silent majority. The one who cries out, sings and dreams within us all. This is the “quidam” whom this show allows to speak. This is the place that beckons—a place for dreaming and genuine relations where all quidams, by proclaiming their individuality, can finally emerge from anonymity.
Show Schedule (March 30 – April 3, 2011):
• Wednesday, March 30 at 7:30 p.m.
• Thursday, March 31 at 7:30 p.m.
• Friday, April 21 at 3:30 p.m. and 7:30 p.m.
• Saturday, April 2 at 3:30 p.m. and 7:30 p.m.
• Sunday, April 3 at 1 p.m. and 5 p.m.
Ticket Information: • Adults: From $40 to $115 • Children (12 & under): From $32 to $93 • Military, Seniors & Students: From $36 to $99
Monday, March 28, 2011
Distressed Properties: Discounts and Difficulties
by The KCM Crew on March 25, 2011 Most buyers want to make sure they get a ‘good deal’ when they purchase something. Purchasers of real estate are no different. That is why many decide to buy a distressed property (a foreclosure or a short sale). The National Association of Realtors (NAR) last week reported foreclosures, on average, sell at a 22% discount and short sales at a 17% discount. It sounds like a pretty good decision to buy a property at those levels of discount.
However, the purchaser must realize that there are added obstacles in these type of transactions. Many foreclosures are left in less than pristine condition by the previous owner and some have title issues that must be corrected before they can change hands. Many short sales have multiple loans that must be negotiated before an offer is accepted by all parties to the transaction. This can take months in many cases. Purchasing a non-distressed property will probably have a lot fewer pitfalls.
“Patience Equity”
Does that mean that you shouldn’t consider a distressed property? Not necessarily. Just understand that there is an additional cost to purchasing a foreclosure or a short sale: the cost of time. For some, the 17 or 22 percent discount is well worth the extra time they must spend on the transaction. We like to call that savings your ‘patience equity’. Patience equity will require you to be patient however. Realize going into the deal that there will be obstacles to overcome and make sure you give your real estate professional time to overcome these challenges. Again, patience equity will require your patience.
Bottom Line
Buying a distressed property could make sense for you as long as you realize you will need to be VERY patient with your real estate agent throughout the process. If you are, you will own a home that has considerable equity the day you move in.
Friday, March 25, 2011
2nd Annual Mission Valley Craft Beer Fest
Confirmed breweries:
Airdale Brewing Company, Back Street Brewery, Ballast Point Brewing Company, The Bruery,
Eastlake Brewhouse, Firehouse Brewing Company, Green Flash Brewing Company, Hess Brewing Company, Iron Fist Brewing Co., Karl Strauss Brewing Company, La Jolla Brewhouse
Left Coast Brewing Company, Lightning Brewing Company, Manzanita Brewing Company, Mission Brewery, New English Brewing Company, Oggi's Pizza & Brewing Company, Pacific Beach Alehouse, Stone Brewing Company.
Proceeds from the event will go to Fresh Start Surgical Gifts, a non-profit organization that provides reconstructive plastic surgery to children and young adults with physical deformities. Tickets $35, $15 designated driver. Save $5 with promo code “HOSTED”. Sunday, March 27, 12-6 p.m.
Bar Biz by Kelly Cisek
Kid's Day at the Carlsbad Flower Fields!!
Saturday, March 26, 2011 (9:00 am to 5:00 pm):
Kids’ Day – Fun filled day of activities, including snow and sledding, magic and juggling, an appearance by Ronald McDonald, live entertainment, face painting, animal balloons, child safety IDs and a performance by the San Diego Guild of Puppetry.
The Flower Fields of Carlsbad is located at 5704 Paseo Del Norte in Carlsbad, CA, directly above the Outlet Mall and roughly two miles away from Legoland California and the SeaLife Aquarium. The Flower Fields is open to the public daily from March 1, 2011 through to May 8, 2011, from 9:00 am to 6:00 pm. Admission is $10.00 for adults; $9.00 for Seniors (aged 60+) and $5.00 for children ages 3 to 10. Children 2 and under are free. Season passes are also available ($10.00 – $20.00). Click here for information about coupons and discount admission to the Flower Fields.
Kids’ Day – Fun filled day of activities, including snow and sledding, magic and juggling, an appearance by Ronald McDonald, live entertainment, face painting, animal balloons, child safety IDs and a performance by the San Diego Guild of Puppetry.
The Flower Fields of Carlsbad is located at 5704 Paseo Del Norte in Carlsbad, CA, directly above the Outlet Mall and roughly two miles away from Legoland California and the SeaLife Aquarium. The Flower Fields is open to the public daily from March 1, 2011 through to May 8, 2011, from 9:00 am to 6:00 pm. Admission is $10.00 for adults; $9.00 for Seniors (aged 60+) and $5.00 for children ages 3 to 10. Children 2 and under are free. Season passes are also available ($10.00 – $20.00). Click here for information about coupons and discount admission to the Flower Fields.
Here is a Great article on Building Wealth as a Homeowner!
The 4 Stages Of Wealth Building As A Homeowner
by Dean Hartman on March 24, 2011
One of the primary objectives of owning a home is to let the home appreciate over time and become a pillar of a family’s financial strength.
But before we can discuss “wealth”, we need to identify the stages to get there.
Stage 1
Having “Emergency Cash” is the first stage. It’s having $5-7,000 liquid for life’s inconveniences (the boiler breaking down, the car needing work, etc). When faced with the inevitable challenges that arise, many people are forced to run to their credit cards to make it through. They become stuck with high interest rate, non-tax deductible borrowing.
Stage 2
The second stage is the elimination of “Bad Debt”. We define “Bad Debt” as any debt whose interest is not tax deductible. Obviously, those high interest rate credit cards must be the first to go. But we also want to divest ourselves of the borrowing associated with car loans, boat loans, student loans, and personal loans because it typically can be done cheaper.
Stage 3
Shockingly, when you arrive at stage three, you will be considered in the Top 5% of Americans in terms of financial security. Stage three is accomplished when you have 3-6 months of your total expenses in reserves. The average homeowner (who is logically financially better off than the non-homeowner) has less than one month’s expenses in reserve! When life shows them more than a minor inconvenience (like a job loss, an illness/disability, or worse), most people are in a panic situation. With 3-6 month’s reserves, you will have time to weigh options and make better choices.
Stage 4
True financial security is attained when you become “Debt Free”. But not without debt. We consider our clients “Debt Free” when they have enough liquid assets to pay off whatever mortgage they have outstanding. Wealth building almost requires utilizing the tax benefits of having a mortgage in combination with strategies that utilize The 3 Miracles of Money…
The 3 Miracles of Money
1. Compound Interest – The impact of money left to grow upon itself can be dramatic. If you had $1 on Monday and you could double it every day ($2 on Tuesday, $4 on Wednesday, etc.), by the end of 20 days, you would have $1,048,576.00!!! Now, you can’t double your cash every day, not even every year, but the concept holds true…..compounding interest is a good thing!
2. Tax Free Growth – The ability to accumulate assets without giving Uncle Sam a third of it (in the form of Federal and State Income Taxes) is how the $1 became $1 million. If the growth was taxed at 33% ($1 on Monday gave you $1.67 on Tuesday – instead of $2- and so on), your $1 would only grow to $28,466.20 after 20 days!!! THAT IS NOT A TYPO! You would have “lost” over $1 million.
3. Leverage and Arbitrage – If you can put up minimum cash and take title to a significant asset (like a down payment on a home….the smaller the down payment the better), you can leverage that cash investment to large returns. At the same time, if you can take the cash that you don’t bury in home equity and effectuate a spread between your “after tax cost of money” (mortgage payment) and your investment options (hopefully, in a tax free environment), you can gain the exponential growth that creates wealth.
Bottom Line
Please take the time to investigate all that is possible, by harnessing the POWER of a mortgage to help you move your family towards wealth. Work with a loan officer who can educate you on the power behind properly leveraged real estate via tax savings and reallocation of equity.
by Dean Hartman on March 24, 2011
One of the primary objectives of owning a home is to let the home appreciate over time and become a pillar of a family’s financial strength.
But before we can discuss “wealth”, we need to identify the stages to get there.
Stage 1
Having “Emergency Cash” is the first stage. It’s having $5-7,000 liquid for life’s inconveniences (the boiler breaking down, the car needing work, etc). When faced with the inevitable challenges that arise, many people are forced to run to their credit cards to make it through. They become stuck with high interest rate, non-tax deductible borrowing.
Stage 2
The second stage is the elimination of “Bad Debt”. We define “Bad Debt” as any debt whose interest is not tax deductible. Obviously, those high interest rate credit cards must be the first to go. But we also want to divest ourselves of the borrowing associated with car loans, boat loans, student loans, and personal loans because it typically can be done cheaper.
Stage 3
Shockingly, when you arrive at stage three, you will be considered in the Top 5% of Americans in terms of financial security. Stage three is accomplished when you have 3-6 months of your total expenses in reserves. The average homeowner (who is logically financially better off than the non-homeowner) has less than one month’s expenses in reserve! When life shows them more than a minor inconvenience (like a job loss, an illness/disability, or worse), most people are in a panic situation. With 3-6 month’s reserves, you will have time to weigh options and make better choices.
Stage 4
True financial security is attained when you become “Debt Free”. But not without debt. We consider our clients “Debt Free” when they have enough liquid assets to pay off whatever mortgage they have outstanding. Wealth building almost requires utilizing the tax benefits of having a mortgage in combination with strategies that utilize The 3 Miracles of Money…
The 3 Miracles of Money
1. Compound Interest – The impact of money left to grow upon itself can be dramatic. If you had $1 on Monday and you could double it every day ($2 on Tuesday, $4 on Wednesday, etc.), by the end of 20 days, you would have $1,048,576.00!!! Now, you can’t double your cash every day, not even every year, but the concept holds true…..compounding interest is a good thing!
2. Tax Free Growth – The ability to accumulate assets without giving Uncle Sam a third of it (in the form of Federal and State Income Taxes) is how the $1 became $1 million. If the growth was taxed at 33% ($1 on Monday gave you $1.67 on Tuesday – instead of $2- and so on), your $1 would only grow to $28,466.20 after 20 days!!! THAT IS NOT A TYPO! You would have “lost” over $1 million.
3. Leverage and Arbitrage – If you can put up minimum cash and take title to a significant asset (like a down payment on a home….the smaller the down payment the better), you can leverage that cash investment to large returns. At the same time, if you can take the cash that you don’t bury in home equity and effectuate a spread between your “after tax cost of money” (mortgage payment) and your investment options (hopefully, in a tax free environment), you can gain the exponential growth that creates wealth.
Bottom Line
Please take the time to investigate all that is possible, by harnessing the POWER of a mortgage to help you move your family towards wealth. Work with a loan officer who can educate you on the power behind properly leveraged real estate via tax savings and reallocation of equity.
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