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

Good morning to Summertime!

Don’t Wait !!

Home buying continues healthy – Home refi’s are responding to higher rates

The Good News: Confidence in Real Estate is steadfast. So don’t miss out. Call today and let’s prepare for some summer fun.

Recent News

 – Ukraine: With Russia attaining control of the Black Sea, it is time for peace talks to begin. Talks leading to peace in this very complex region, historically. This is not our military fight. Ours is humanitarian in aid and support. We continue to hope and pray for the innocent. 

– Federal Reserve: Increases in underlying rates is the expected. Sadly, the Fed has a poor track record for figuring how to influence the market, in times of stress. Lets keep this in mind, as we digest talks of stagflation and recession. For now, rates and jaw boning seem the tools of choice. The top 3 – Fed Chair, Vice Chair and New York president – all discuss tackling inflation. The goal: Control inflation through interest rates. What about liquidity?

– China: Zero tolerance for CoVid has world-wide ramification. About 25 % of their exporting capacity is currently shut down. For some companies to keep working, employees are required to live on-site. This pressures supply, slows growth, and is inflationary. 

Bottom Line: 

Interest Rates ARE Up – Act now

Key to Success: Being well prepared is key to letting the Realtor and Seller know your readiness and commitment. It is the first step in turning dreams into your reality. And don’t let the “All Cash buyer” be too concerning. 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.

Bottom Line:

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

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

It strengthens your Realtors efforts in selling you and your offer 

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

Interesting News We Can Use

New Loan Limits: With increases in property values, we have new, higher conforming / conventional loan limits for SFR. The new number is $ 647,200. For higher cost Counties, this number can be up to $ 970,800. Let’s talk. What a Spring Buying window of opportunity. 

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

Interest Rates: The short answer: Rates are up – likely even higher. 

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

VA rates and FHA ratesIf a Vet? Call today.  Fixed rates in the high 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 !

Jumbo Rates: 30-year fixed: Low 5’s. 5-year fixed then adjustable: Low 4’s.

Housing: 2022: As we exit peak Spring buying, will prices abate a bit, or will rate of appreciation simply slow? Key: Actual Sales prices, not initial listing prices is what we should watch.

Builders Numbers: Coming in lower. The backlog of uncompleted homes is causing a drag on new building.  This lack of available supply is helping hold up prices.

Employment: Many large companies talk of pausing hiring. Some mention actual headcount reductions.  Add to this, Fed talk of cranking rates even higher, to head off inflation.  Yes they may cool inflation, but the risk is creating a liquidity problem. A likely key indicator will be how they analyze employment numbers. Current numbers are holding steady over the last 3 months, with the U-6 – the all in number – increasing a smidge the past 2 months.

The Good, the Bad, And the Ugly

THE GOOD: Big environmental win in California: The end of state-run pesticide programs on public, agricultural, wild lands, and private properties. The government has also announced a $40 million award to support regional initiatives that repurpose agricultural land in an effort to reduce water demand.

Second Good: Hat-tip to the Unites States. US CO2 emissions – measures as Bmt – peaked in 2007, at 6.0. Since then, they have steadily fallen, bottoming in 2020 – peak Covid-19 – at 4.6, same levels as 1984. During the 2021recovery, emissions rose to only 4.9. This Bmt number, outside CoVis, is the lowest since 1988. As perspective: Chinese emissions double ours. 

THE BAD: Ukraine – Europe – Russia, along with the China lockdown and you have supply chain inflation and severe food shortages. Consider the millions of families being harmed. It is time for the insanity and irrational reasoning to end. 

THE UGLY: Local disconnect continues to baffle me. A friend is rebuilding a house in Mountain View – a simple, straight forward rebuild. Then enter PG&E. They demand the client pay for upgrading the local transformer. But due to supply chain problems – lack of supply at the LA ports – it will be 3 months – even 15 months – before PG&E can upgrade a working transformer. Another example of why we struggle with a housing supply issue.

Planning and Preparation 

Are markets peaking – stocks, bonds, real estate? Each of us has a different view. Yet how each of us respond to it, is what makes the market, the market place. It is keys to one’s planning and preparing for tomorrow. And it is here, we strive to meet you and complement your perspective. Our goal: Bring to you, a full range of possible options, ones meant to enhance your view of tomorrow, based upon today’s market place. 

Why call Mike

What We Do – Why We Are Here

We know how to explore and carefully examine the many options open to real estate. We scrutinize for safety and prioritize the most feasible. It is how we build a trust relationship with you. It is how we help you grow your wealth and secure a solid future for you and your family. 

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

Residential / Commercial: We offer strong lenders and a complete package of lending options.

Tax-deferral strategies:  Investment portfolio tend to be dynamic in nature, subject to change and surprise. It is why it is important to keep updated, as to tax law. Herein, is a key question: Pay taxes today  or keep your cash, working for you? How? By “deferring projected capital gains tax”? And if keeping your capital – working for you – sounds good, let’s talk. Let’s discuss the best available options and plans-of-approach. Best: We have the professional team who know how to bring it all together. Details matter and they know all the small details. 

So: Why payout up to hundreds of thousands of dollars – even Millions – today, when you have the ways and means to keep your hard earned money working for you and your estate. If it is time to talk, to plan ahead, let start today, I am ready. Call today, planning income tax strategy is more important today, than ever. With new laws to stop you from passing highly appreciated real estate onto your heirs, to no longer benefit from low Prop 13 tax basis, it is time act. Time to be prepared.

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 defining key 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 best answers and solutions

Being Straight Forward and no short cuts. 

Success begins with solid preparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I offer time-tested insights and 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.

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