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

Good morning,

Don’t Wait !!

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

Recent News

– Inflation: Easing slowly. Gas prices off the top. Federal Reserve still planning to keep the pedal down with upcoming rate increases. The unknowns: Drought and transportation.

– Federal Reserve: Last weeks meeting in Jackson Hole , WY was as expected.. until Fed Chair Powell (the King of Pain) did a short 8 minute talk. The short take is he indicated the fight against inflation was going to bring pain to households and small business. 

– Homeownership and Wealth Effect: 65 % of household equity, is in our homes.  Home ownership is still the way to go. Within this group, the top 50 % have a net-worth of 500 K or more.   Further, the top 10 % have a net worth of 800 K; the top 5 % is at 1 M; top 2 % is at 2.5 M; and the top 1 % – 10.8 M of net worth. There is a measurable reason to own a home. Call. 

Bottom Line: 

Interest Rates Are Up – ACT NOW!

Key to Success: Being well prepared. It lets your the Realtor and the Seller know your readiness and commitment. It is the first step in turning your dreams into reality. For certain, don’t let the “All Cash buyer” be too concerning. Most Sellers like – even prefer – the hands-on experience of a more traditional Home Buyer. Homes are personal and families are part of the American heritage.

Bottom Line:

Call today and let’s prepare for Home Buying 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

Forbearance and Foreclosures: Good News. Numbers remain very, very low – great for homeowners. Yet, if foreclosure is a your possibility, a new loan is possible. Not always pretty, but not if the priority is Saving your home. Let’s talk. Sooner the better.

Interest Rates: The short answer: Rates are up – likely moving even higher, near term. 

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 ! Let’t talk. Please don’t miss out.

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

Builders Numbers: Headlines: New home sales contracts down 12.6 % in July. Yet, taking into account those ‘sold’ – but yet built – there is only a 1 month supply of constructed, ready to move-in new homes, available. What’s missing? Only 10 % of the figure is actually built.

Employment: Co-Vid affect: Between 2 million and 4 million working-age Americans are  not currently working due to “long” or variant Covid. This may help explain the US’ persistent labor shortage, confirmed by a new report from the Brookings Institution. For perspective, 3 million workers is equivalent to 1.8% of the total civilian labor force. Further, this number translates to $168 billion in lost annual earnings and with it, a reduction in available supply.

The Good, the Bad, And the Ugly

THE Good: A non-profit group, RIP Medical Debts, has relieved 3.6 million low-income patients in the United States of their healthcare debts. How does it work? The initiative – developed by former debt collectors – involves the company buying bundles of delinquent hospital bills. Then, instead of profiting from customers, they clear their debt. NPR

THE BAD: Politically expedient – but financially risky. That is my view of our expanding deficit spending – without cuts in bureaucratic spending. Consider CoVid and all its various names and labels. Then, Build Back Better that builds nothing meaningful to the nation. Then, the bottomless pit called Ukraine. Then, the complex and puzzling, Inflation Reduction / Greenhouse spending that arms the IRS. Next, student-debt forgiveness that transfers wealth to the wealthy, and bring inflationary pressures to the rest of us. Vote November. You matters. 

THE UGLY: Political ambitions. Check-out Governor Newsom’s recent efforts to end the sale of gasoline powered vehicles, by 2035. What if you cannot afford the alternative? What if you can, but no nearby recharging station – an apartment complex. Anyone calculating the cost to upgrade the grid? What if the grid goes down? What is the energy sources needed to create the electrical energy? What about the cost to protect the environmental, when the batteries are replaced. This seems more a fantasy – risking financial insanity – as we are in search of honest answers. 

Go green. But I want to see / know how we get there and what happens when it comes time to dispose of all the toxic waste. Am I missing something ?

Planning and Preparation 

Should one invest in stocks, bonds, real estate? Each person has a different view, often based upon comfort levels and sense of risk / reward. It is what we call the market place. It is key to one’s “planning and preparation”. It is here, we bring our expertise and experience. Ours is to complement your perspective. Our goal: Bring a full range of meaningful options that enhance your vision, based upon todays market realities. Call today. Let’s set a time. 

Why call Mike

What We Do – Why We Are Here

We know how to explore and carefully examine the many available real estate options. We scrutinize for safety and prioritize the most feasible. It is how we build a trusted relationship with you, as 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. 

Why: Why payout up to hundreds of thousands of dollars – even Millions – when there are tools to keep your hard earned money working for you – and your estate. Interested? If so, now maybe a good time to talk – to start planning for tomorrow. Tax planning is a good strategy, especially with new laws wanting to stop you from passing highly appreciated real estate, onto your heirs. Let’s talk. Your estate matters.

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 tools and proven methods for highly appreciated holdings. The goal: Keeping your cash in your proven hands. Our team offers highly qualified and knowledgable professionals, are ready to make it happen. 

Retirement: Like myself, as we mature, 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 with 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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