Rocktober 2020 Letter From My Heart

Good morning to Fall Days and cooler evenings: 

Don’t Wait – Call Today

Rates steady – many seeing 3%, even into the 2%’s. 

Fed Reserve says rates to stay low for the next couple of years. 

Question: Is this good or bad for mortgage rates?

Fed Funds rates are short term and can respond quickly to unexpected changes in the market – especially inflation. At the same time, 30-year mortgages are typically less influenced by inflation or sudden shocks. So when the Fed says, ‘low fed fund rates thru 2023’, we can see why they will also allow inflation to run a bit hotter, before acting. This is Good News for a market yet in the start of up mode, and allowing for some surprises. This gives the market needed certainty and re-assurance the Fed understands this not a typical recession or recovery. 

Talking of inflation: The past decade of high inflation in medical, housing and food had only marginally impacted the bond market – not what experts warned. One reason was the safety, strength and growth in our US economy vs many weaker world countries. Thus the demand for US bonds and Treasuries have more than offset expressed fears. From my perspective, there seems little reason for this to change – short to mid-term – and is key to the resiliency of our very low interest rates. This is good news for home Buyers and real estate investors. 

Suggestion: We have seen this before. We hit the 3’s in 2012 and then again in 2016. Sadly, over half of the people sat on the sidelines. Why? They hoped for what did not happen – even lower rates.  Suggestion: If you took advantage of 2012 rates, this may prove to be a great time to refinance into 15-year mortgages. If you took advantage of the great rates of 2016, now is a great time to consider a new 20-year loan. Why? Both options offer substantial savings with the added benefit of shaving years off your loan. With this ‘bird-in-the-hand’ moment, don’t miss out. Let’s talk about how to fully benefit from the many options I offer. Let’s talk today.

Keep in mind: Best rate matched to a poor strategy is a far more expensive refinance, than one that carefully considers rates and a loan strategy best matched to you and your tomorrow. 

Corona Virus and CoVid 19

The noise is overwhelming, but more and more, new studies seems to clearly indicate we overreacted to the emotional fears, pounded in our heads. Yes, a vaccine will help calm the nations nervousness about the virus. Yet as a Nation, we must – more and more – consider how each day, families and small business are suffering far greater actual damages, than can be directly tied to CoVid-19, when isolated and standing alone. It is time to remove the shackles. 

Consider: One gas station requires masks while pumping gas, while the same company, in a different County, doesn’t. See the problem here ? Give people the right to choose and let business offer what they believe best serves their customers. This seems better than trusting our current leaders who seem more concerned about November than “We the people.” For me, I believe in the America people – their tenacity and ingenuity. If we will trust the people with all the facts, the American creativity will lead us out of this mess and prepare us for tomorrow. 

Lending Rates

Putting aside all the headline noise and political posturing, Homeowners continue to be less hit by CoVid, with more homeowners working and building equity. It is really an awesome time, with rates in the 2’s and 3’s, and a great time for us to talk about how I can help you benefit, today.

Talking of noise lacking facts and perspective, consider Diana Olick – CNBC’s real estate spokesperson. Sheblatantly told those listening, it was better to rent than own, for most of the past decade. Was there an axe to grind? Oh yeah, they are a media outlet pushing Wall Street – stocks and bonds.  Isn’t that interesting.

For the past 2 months, appreciation – across the nation – has been marching upward 1 percent per month. Excellent for a leveraged position and though not sustainable, it is a testimony to the dynamics of the market, not bias speculations. Even with CoVid, real estate is up over 5 % year over year.

The Good News: Counter-Points to bad media

GREAT RATES many starting with a 2% !! We see Jumbo loans solidly in the lower to mid 3’s.  More good news: “Property Inspection Waivers” are possible when the net equity in the home is high. Loosening of Loans regs – even a bit – is benefit for all.  Call today.


New home sales: Continue very strong with demand for homes running ahead of supply. Bottom line: HUGE! Don’t underestimate the fearlessness of the American spirit.

ATTOM reports on real estate across several factors. Their data suggests an affordability crisis – median price up 11.4 %. But their data is not helpful, as it misuses “median price”. Median price is a price where 1/2 of the homes sell for more and 1/2 for less. Instead consider, Case Shiller report. It shows a 5 % appreciation – a far more accurate representation. And though seemingly a big number, it is not. If one considers recent wage rates – plus 5.3% in the latest Jobs report – and adjusted it to home purchasing power, according to Case Shiller, this 5.3% increase in wages, speaks to a 15 % increase in purchasing power. Thus, when properly reviewed, real estate values remain Buyer friendly – certainly not an affordability crisis!

How about Sellers? They are in charge again. Sellers are once again seeing “offers” over the asking price.  With this, Sellers are now asking for more than just a pre-qualification letters. They want and are receiving Pre-Approval letters. This makes it clear the absolute necessity of loan preparation, especially if you want a leg up on other Buyers. Good News: We are expert at both and know how to expedient the process. Time to put time on your side? Call us.

For Clients: In these days of CoVid, we have the technology to help keep you safe – Electronic signatures, dropbox, even web-video. They give us ways to gather and move information, while meeting safety needs. We are here for you, in more and better ways. Give me a call.

Excellent Rates – So prepare today, for your better tomorrow. Call Now!


THE GOODWhite House Taking Action When Needed

With their recess over, the House and Senate continue hurting the ability of Small Business to survive, financially. It is good to have a leader willing to take the heat and continues working to help American workers and their families ! 

THE GOOD:  Pride of America – The Working People

Last weeks new unemployment claims hit 870,000. Excellent. And when considered from a worst case scenario, the total number of all sections of unemployment are DOWN 3,700,000. This is a whopping 10% of those previously on the sidelines back at it. They are now back to work. Fabulous !! 

THE BAD: California Leadership

Is this who / what we voted for – a gasoline free California, in 15 years? Time to wake up. Understand, the necessary infrastructure – plans and planning – doesn’t exist. Working on a downtown San Jose project – one seeking to be all electric – we were told it was not possible. Why? A lack of electrical supply. And this was just a 6 unit property.  It is time to vote out the duplicitous fools we call leaders. They sell rhetoric, while doing nothing – decade after decade!


A political nightmare and financial fiasco. Even the negotiated deal between Trump and Amazon, may not be enough to plug the leaks and right this sinking ship, called USPS.

Consider: In 2005, the USPS handled 25 billion pieces of first-class mail and periodicals, and 25 billion pieces of marketing mail. Since then, first-class volume has fallen by 56% while volume for marketing mail fell to 19 billions – 24% – in 2019. Since then, it has collapsed to 12 billion! In the same time frame, USPS union employment has fallen just 22%. 

There are solutions, but only after taking out the politics and union influence. Mail-in voting ?? 


1) We also provide loans – new and refinance – for Small Business and Commercial. This may prove most helpful near-term and longer term. 2) Plus: We offer specialized tax-advantaged alternatives, when selling highly appreciated real estate. We are proud to ask: Why pay Capital Gains taxes now? Why deplete your cash, when unnecessary?  3) We also provide strategies to help keep you in your home, providing more options than just a Reverse Mortgage.

Call and let’s prepare for your tomorrow – Today


As we approach November elections, give a carefully review of the major, year-to-year trends. Note how before Co-Vid, we had the most vibrant economy – breaking major records across stocks, bonds, incomes, savings, wealth, employment, etc. It was an economic turn around believed impossible by the main stream press and political class. Then by no fault or blame, comes the CoVid scare that brought a rapid, world-wide economic harm. As we look ahead, ask: Who best showed the ability to grow our economy out of a recession? My suggestion, this answer should help guide your vote, Tuesday, November 3, 2020. 

This is preferred to being sidetracked by personality – likable or unlikable. Instead it is about adding more jobs, preparing our kids to love America, and fulfilling the promises they make. For me, I tire of words meant only to sell. Now it’s time for actions and resolutions meant to build a more peaceful and prosperous USA. With this, consider immigration. Remember that in spite of “Clinton – Bush – Obama” promises, reform never happen, nor even considered. Let’s stop voting personalities or the rhetoric. Consider the actual facts, check the outcomes, and were promises fulfilled? It is time to give the talkers, their well deserved walking papers. How? By the power and dignity of your secret ballot.

How about this? Recently, a CA State representative sought to outlaw evictions – for a full year – regardless when the State of Emergency actually ends. Can you say instant headline? Here is the harsh reality: If you stop foreclosures, you set up a chain of events where every bank stop lending in California. 

Ask yourself, why would any elected official seek to destroy the home values of the American middle-class? Do they hate America – what it stands for and what we have accomplished? Why do I ask? Because like you, I work very hard, every day, to hold onto my American dream. It is time we demand better. Help vote in those who care and appreciate America – its uniqueness and proper place in the history of civilization? 

Vote America in November. Vote positive thinking, personal freedom and trust in God.

Good News:

Hot real estate is not just in the SF Bay Area. Most of our Country is participating, without fears. Why? Low interest rates and pent up demand. It is key to bringing both Buyers and Sellers to the table. We saw the situation and we adapted. Areas without the threat of CoVid, are seeing 60 groups going through an open house. Builders are building and the buyers are coming. I talk with many investors, and we are all full with good paying tenants.

Key question: Is now the opportune time to act?  YES, with emphasis. Especially if: 1) seeking a good quality home with a good location 2) excellent / low interest rate, 3) a professional team keeping the client safe and secured against fraud and missteps, and 4) strong lenders able to provide a customizable loan, best fit from them, today, tomorrow, putting you first. This team describes Michael Ryan and I have a strong database of awesome Realtors. Let’s talk

This is the most bang for your dollar.

With rapid changes in our market – home availability, pricing, lender programs – the best way to be prepared, is for us to talk first. This is no time for short cuts and wishful thinking. 

The Good News: We love Buyer questions and have the tools to evaluate a broad spectrum of questions: Home prices, loan programs, lender options, deferred capital gains, Small Business, Vets, or refinance, etc. Even better, its only a phone call away – Let’s Talk. 

Tax Deferral Programs

I hear every month people chose to payout over $ 500,000 in capital gains tax to Uncle Sam – not including the State. A sad outcome and one to be avoided. The first problem, they acted before we talked. They listened to under-educated professionals who did not know the legal tools to help keep most – if not all – of one’s hard earned capital gains, in their pockets – away from the tax man. 

There are legal – and excellent – way to keep your money working for you, There strategies are proven and IRS-approved. Sadly only a few practitioners are aware of it many benefits. The Good News. I am one of these and you have access to me, by a simple call. And with this, comes the awareness of a strong support team and network of professionals, each step of the process.  Key First Step: Establishing a game plan and carefully identifying the players needed. And because time is critical, a careful, overall evaluation is needed. No Super Bowl has ever been won, or even played, without a game plan, without a play book, and the right players. Let’s talk and get a sense of your initial thoughts, what you want, and how soon.

Closing Thoughts: 

We are the financing arm to help leverage your strengths with assets and accumulate long-term wealth. We offer needed information – perspective and plausible financial solutions – with strong lenders ready to say “Yes”. Give us a call. If you are interested in this kind of outcome, let’s start building your future, today.

Thank you and continued blessings.