Letter From My Heart – July 2018

Good morning in the celebration of our Independence,

Here is hoping your Fourth of July week is complete, with time for family and friends. 

Our local markets are taking a healthy pause, along with a needed time, to digest the dramatic appreciation, both in commercial and residential. It is part of the reasoning why interest rates have been on a steady increase.  And as we approach November, anticipate the same familiar voices saying the sky is falling.  Election cycles seem to love fears, panics, and the bizarre.

The good news: Our economic fundaments are sound, company financials are strong, along with very positive business and consumer confidence.  We are seeing re-positioning, some re-structuring, and a lot of open jobs for our tech community.  An amazing re-awakening.

Sales tax receipts are at all time highs, so too, property tax receipts.  I am thankful to hear our Governor promises to fill the rainy day fund – as is mandated.  It can’t be easy.

More good news:  As banks begin to slowly reach out to more people, our market access to lending programs is expanding.  Give a ring.  We can help provide you the data and information needed for solid planning that leads to successful solutions.  Your success is our success.

I love my business. It keeps one nimble, ready, and always aware. I am seeing conversations concerning the benefits of re-position real estate assets, both into and out-of-state, along with a growing interest in retirement planning, and funds for college tuitions.  There is so much good going on and I am thrilled to be a part of it.  Thank you.

Seminar:  Smart Planning for Real Estate

Here are the promised links to my upcoming events in both Fremont and San Francisco.  I look forward to seeing you there.  The topic: “Tax Deferral and Avoidance Strategies for Highly Appreciated Real Estate.”  You can expect to join the group to register.

July 17th


July 18th


On the 25th, I will be speaking at Jeff Pollock’s meet-up in Santa Clara.

Then at the end of September, we will again have our table at Bruce Norris’, “I Survived Real Estate”.  It is a black tie gala – at the Nixon Library.  If you would like to sit with us, at our table, reach out to me for details. It will be great and much fun.

Points of Interest:

1) Interest rates can be expected to continue a steady, slow pace of increase.  Inflation fears and another round of Fed QE reduction, in July, seem key.  Along with this, is the obligation for more U.S.debt funding.  Yet actions by the EU to continue their QE, should help ease pressure.

2) May employment numbers – excellent. The unemployment rate fell to 3.8%, lowest level since April of 2000! For African Americans, it is now 5.9%, – lowest level since keeping records in 1972. For women 3.6% – lowest since 1953! Lastly, the unemployment rate for those with less than a High-School diploma – 5.4%  – near a new record.

3) My long-term stance regarding the Millennial group buying homes, is coming to fruition.  They are now part of the mix of new real estate owners – though a few years older than past age groups.  Good for them and we have the proven tools needed for success.  Let’s talk.

Our Monthly: The Good, Bad n’ Ugly:

The Good:

Private debt is growing..  A sign of rising wages, better employment, and pent-up needs and demand.  With this is a sense of a more secure tomorrow and this is known in home prices, the stock market, and for many of us, our retirement programs.  “The Good” is it growing – at less than 3 %. – but smaller when considered against income and wealth.  We will look at public debt, government debt, and corporate debt in the Ugly section, below.

The Bad:

The sales of “Sex and the Slimy”.  I have bad mouthed media for years.  Yet, if one follows the money, this negative monster is us, the general public.  For proof, check out sales for the Star or other such grocery tabloids. We the people created this monster, and the media is simply filling the need.  If we don’t “look for it”, if might stop  being there.  Personally I trust in the good deeds of my neighbor, which seldom gets published.

The Ugly:

Debt.  In good times, one should pay down debt need to fight through tough time. With this, take care of things in need of fixing.  This seems a healthy way to prepare for the next downturn and having experienced 6 of them in the past 30 years, may we learn from this reality. AS for our local, State, and Federal Government, it applies even more.  Buy down debt as more revenue comes in and prepare a “rainy day” fund.  As taxpayers, we should expect this.  Yet public sector debt is growing at twice the rate of our private debt.  With the ‘Rule of 72’ public debt will double in the next 7 years.

In Closing

Our initial conversations are usually in two phases.  The first is to gain a mutual understanding of your situation, attain essential information to determine options, and then initiate our beginning conversations with our lending partners.  Our second conversation is to review and share with you options best fit for you – your needs, expectations, and situation.  Then it is time for you to decide.  Sound like an approach that might work for you?  Please give us a call.

Preparation is key and our team is ready to help you achieve your dream, now.

Call today!

Have a blessed day and a joyful July 2018.

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