Your April 2022 Letter From My Heart, with the Good Bad n’ Ugly

Good morning to Springtime, thankful for any rain!

Home sales are healthy – Home refi’s responding to inflation – Don’t Wait

The Good News:Confidence in Real Estate is steadfast. Don’t miss out.

The real estate market remains a frenzy. Call today. Let’s prepare for the fun.

Recent News

–Ukraine: The warseffects further harms our supply chains. Most prominent: energy – gas at the pump and heating our homes – plus rising food costs.

–Federal Reserve: Quite the agents of double talk. All agreed rates need to go up, in response to inflation. But, the market expected a 1/2 % increase. It did not happen. Enter Ukraine, and now our Fed back-pedals to 1/4 %. Yet, within a week the “Fed speak” is all about: “We are really here to fight inflation”.

The Issue:Fighting inflation, while avoiding stagflation.Fed wants to slow inflation by squeezing out excess money. At the same time, democrat-run Congress increases deficit spending even more. Congress fuels inflation and we suffer. Next comes the emotions called Ukraine and demand for more deficit spending. The stock market is confused, wondering who runs the show and what’s the priority. Our future or a border that’s Europe’s problem,which one first?

A can of irresponsibility, with no accountability. The Fed talks the need for aggressive rate hikes and balance sheet reduction, to control inflation. Yet what can they do, if Congress works against them. Is a hard landing possible? Yes. We the people need to be heard. We are good people. We are worth it. Truth is far better than deceitful double-talk that only confuses. 

Looking ahead, beyond the rhetoric ? 

Big Question:Inflation – here and abroad. Expect higher numbers as we watch Ukraine and Russia battle it out. Let’s hope for negotiations. Until then, inflation is troublesome, as the Fed chooses rhetoric as it best weapon. Time for Congress to cut spending, not raise taxes.

Bottom Line: 

Interest Rates ARE Up – Act now

Key to Success:Preparation. It lets the Realtor and Seller know your readiness and commitment. It is the first step in turning dreams into your reality. Though Buyers often express concerns about the “All Cash buyer”. Most Sellers like – even prefer – the hands-on experience of the more traditional Home Buyer. Homes are personal and families are part of the American heritage.

Be ready today. A strong loan application is a winning attitude.

It strengthens your Realtors efforts in selling you, and best helps

your offer to be the winning offer. Being best prepared is sound advice. 

Bottom Line:

Call today and let’s prepare for the Spring Buying Season Today.

Interesting News We Can Use

New Loan Limits:In response to higher home prices, we have new conventional loan limits: $647,200 for Single Family Residences. For higher cost Counties, this number is now $970,800. Lets talk.A great window of opportunity made even better.Welcome to Spring buying. 

Forbearance and Foreclosures: Good News.Numbers remain very low. Great for homeowners. And if you are, or might be entering foreclosure, we can make new loans. Not always pretty, but the priority is preservation – Saving your home. Let’s talk.

Interest Rates:The short answer: Rates are up. Will they continue? Without trying to out guess Ukraine, perhaps another month, as rebalance thedemand to supply shortages. After meeting pent-up demand for homes last year – a torrid pace – this year should be interesting – both for home prices and mortgage rates. 

Here is a running consensus, from those we review: 

1) Fed rate plans – in response to inflation and liquidity – are significant to “real” growth.

2) Fed timing – regards their balance sheet – is important and needs close monitoring. 2022 Fed Board talk says: Less accommodative, due to inflation. Fed goal: Raise rates, lower inflation, and sustain real growth. The unspoken – importance of sustaining market liquidity. Otherwise stagflation. Congress needs to cut spending, then taxes and ease regulations.

3)Keep in mind:The Fed typically avoids being blamed for election outcomes. With November elections, words may become more important than hard hitting actions. Keep in mind, high rates impacts our US debt, restricts GDP growth, and harms needed tax revenue.

4) Where from here? Could the Fed’s aggressive action against inflation, bring about Carter stagflation? Even in the middle of the election season? May help explain thehesitation of actions. 

5)Conventional loans: Tracking 4’s. Cash-out refinance and investor loans run a bit higher.

6)VA rates and FHA rates:If a Vet? Call today. Fixed in the low 4’s. Plus Veterans refi special: 1) Refi from conventional loan into a VA loan, and 2) Rate-reduction refi’s have NO income, NO asset documentation. NEW rule for Veterans, even a 1 % service related disability = NO VA funding fee !

Housing:2022Prediction. Supply vs Demand is key. Short supply is with us and will continue. Question: Will higher rates effect home prices? Answer: Early in the cycle, rising rates call people to action, bringing a short term bump in demand and values. 

The following is in hope of bringing clarity to future events, assuming stable employment.

The Good, the Bad, And the Ugly

THE GOOD:Let’s look to statistics for The Good. Quick side note: Bad News is often anecdotal, while Good News is statistical. A better perspective on an improving World.

Energy: Good abundance, better with more nuclear and capital investments in fusion. 

Poverty: Keeps dropping. In 1950, over 1/2 the world’s in poverty, now under 20 %.

Food Supply: In 1960, 2200 calories per person/day. 2015: 2800 calories per day.

Forestation: 20 years (to 2015) an increase of 2 M sq KM of forests.

Natural Disaster deaths: Declined 99 %, over the last 100 years. Better tech and medical.

Literacy: Global IQ up 20 points, from 1900 to 1980. Last 20 years, up another 10. 

THE BAD:Ukraine – Europe – Russia. Plus new shut downs in China for CoVid. Near impossible to measure supply chain and inflation effect. Worse: The human cost. Innocent millions caught in the war zone – with threats to surrounding countries. War crimes await.

THE UGLY:City and Government nonsense about No gas vehicles – all electric. Even homes being all electric. Is this the answer to the environment? This is the nonsense of irresponsible idealism, with no one accountablefor the outcome. Another intellectual joke turning science upside down. 

Reality:Take a quick look at the existing power grid system. Consider an EMP. How about the 1.7 Billions dollars – in Colorado – for a dedicated transmission line to just one city. Show me the environmental impact report. Just another California dream train, where financial reality and hard facts, be damned. Oh yes, do not forget PG& E. They seek charging additional fees / taxes to those adding solar to their homes. Who do you trust? I support the open market and differing competitive fuels fighting for my dollar. Not a fools gold, public monopoly.

We are providing more power at less cost, both in consumables and to the environment. Our carbon footprint continues to decrease as a nation, in spite of population growth. We will be the answer, not government.

Planning and Preparation 

Are markets peaking? Stocks, bonds, real estate? Each of us has a different view. It’s what makes the market. It presents opportunities and keys to our planning and preparing for your tomorrow. With this, we strive to meet you, where you are. Our goal is to bring you a full a set of solutions, ones to enhance your view of the market, with a full array of choices.

What We Do– Why We Are Here – Why call Mike

We know how to explore and carefully examine the many options open to real estate. We scrutinize for safety and prioritize what is most feasible. It is how we build a trust relationship, as you set your goals on building wealth and securing a strong future for you and your family. 

Small Business: We love small business and provide loans offering a full array of financing.

Residential and Commercial: Strong lenders and a complete package of lending options.

Tax-deferral strategies: Investment portfolio are dynamic in nature, subject to change, even surprise. It why being current and up-to-date is a solid suggestion, especially considering taxes. As to taxes, a key question? Pay taxes now or keep your cash working working for you. How? By “deferring projected capital gains tax”? If this approach to your money, sounds good, let’s talk. Let’s discuss best available options and plans. Most important: We have the professional team who know how to bring it all together. 

So:Why payout up out multi thousands of dollars – even Millions – when you have the ways and means to defer. This keeps your hard earned money working for you and your estate. If it is time to talk, to plan ahead, let start today, With todays unknowns, income tax planning simply makes sense. With new taxes laws to limit options for passing highly appreciated real estate onto your heirs, it is time to act. Consider changes to Prop 13, as to tax basis, it is time. 

What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. For me, this presents a solid opportunity to keep your cash and build wealth. One that is worthy and a profitable use of your valuable time. Let’s talk. 

Tools:We offer multiple proven tools and methods for highly appreciated holdings. These strategies-of-success help keep your cash, in your proven hands. With this, we offer our highly qualified and knowledgable professionals. This combination is the definingkey to your success. 

Retirement: Like myself, as we age, real estate becomes more personal. If you agree, let’s talk. Together, we can help find answers and solutions to questions about a too soon, tomorrow. We can start today. We can address a range of questions, from working at home, to a multitude of retirement options. Our effort is to bring clarity to important real estate planning issues.

Our Purpose:

Be insightful and practical. 

To Work with you, finding the best answers and solutions. 

Straight Forward and No short cuts. 

Success begins with solidpreparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I provide insight and learned experience. Best, I love to see my clients achieve their goals. Call us – the professional team who stands with you. Call today. We are ready. 

Thank you and continued blessings.