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Think Like Buffett

July 22nd, 2008 3:24 PM

Ok so were not billionaires, doesn't mean we can't think like one. While we sit here and believe all the media hype about how bad the economy is, buffettologist's (yes thats what they call themselves) are like kids in a candy store. Like all things this to will pass. If you can see the forest through the tree's you would likely see some positive results in the next two or three years from the stocks you bought today at bargain basement prices. Well the same is true for real estate. Now don't get me wrong, I too feel the gas pinch and I am sympathetic to those that are struggling to pay everyday expenses, however misery does love company and I won't be a part of it.

Here are some facts:

Mortgage interest is still deductable rent is not!
Interest rates are still close to all time lows
FHA is more attractive than ever
Yes... It's a buyers market
Some homes are being sold with sellers paying closing costs and believe it or not... giving away cars!

What has changed for the better? Some bad mortgage programs that should have never been offered in the first place- 110% loans, no income, no asset loans, all of the subprime prepayment penalty loans (CenterPointe Mortgage did not offer these loans even in their highest of popularity).

So I suggest you walk into your local mortgage company and get pre-approved. Just don't over do it. Stay within your means, don't exceed a 45% qualifying ratio if it's your first home (and be smart if it's your second). Work with a mortgage planner not a application taker. Use the banks money NOT YOURS! Lets look at your future retirement accounts, do you have a plan? Keep and open mind about never paying off your mortgage and look into other safe side accounts. Did you know if you are in a 30% tax bracket and have a fixed rate of 6.5% that after tax it is like having a rate in the 4% range? Why be in a hurry to pay that back?

If the next ten years get here as fast as the last 10 years did are you prepared?

Posted by John Milano on July 22nd, 2008 3:24 PMPost a Comment (0)

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This Will Guarantee You More Listings And Buyers

May 7th, 2008 8:39 PM

So I sat with a real estate agent today (who will remain anonymes) and he/she said "I'm struggling, this is the worst market I've seen since I have been in the business". And he/she paused, waiting for my reply. Actually probably waiting for me to concur. So, I had to within minutes try to respond without making her/him feel any worse. What did I say? Simple, "how many of your past clients did you call today"? Answer? "None"(period). Now remember I do not want to buy in to their misery and I'm hoping to get her/him back on track. So I said ,"We'll I called 52 of my past clients and got 3 leads, two of those leads are actually applying for a mortgage with me this week". I expect to close both deals. We'll he/she slumped a bit in their chair and we both knew why. Without saying a word the only thing I could think of was "when the going gets tough, the tough get going". I know it sounds like a cliche, but understand this, your database is gold. Don't "get u'm and forget u'm". When you start your day tomorrow, spend just one hour, go back to your earliest client and call them. Don't try to sell them anything, just say "hi I'm still around, hope all is well", let them know not to buy into all the doom and gloom they may be hearing on T.V., tell them "rates are down, homes are priced right and selling", Let them know they can count on you to keep them informed about our real estate market. By doing this every day for at least two hours you will guarantee yourself increased production. And if you ever find yourself sitting with me, you won't have to hear me tell you that "business is only slow between you ears". GET UP AND DO IT!

Posted by John Milano on May 7th, 2008 8:39 PMPost a Comment (0)

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Why Use A Buyers Agent??

February 10th, 2008 10:32 AM

How about because it's free!! OK, I have been asked this question as often as I have been asked "what's the rate today". Here's my answer and I'm sticking with it. A seasoned buyers agent working closely with your Mortgage Planner will absolutely save you money. I have been involved in these transactions for many years and as the buyer you always win. Heres a simple example (one that you won't get working with the seller). Most buyers have no idea that the seller could pay closing cost on the purchase. Not only do they not know this, they don't know when it applies and how much can be paid. This is where we structure the deal for you and YOUR agent negotiates the offer with the listing agent. You see, the listing agents responsibility is to the seller and they may want to make the deal "cleaner" not always wanting to share this approach. So why would the seller do this you may ask? Because all they care about is their net. They know in this market they may have to move off the list price, this gives you room for seller concessions. There are lots of hidden secrets that a buyer can get from a good buyers agent. If you would like to be introduced to one, just blog me back!!

Posted by John Milano on February 10th, 2008 10:32 AMPost a Comment (1)

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What Goes Down Must Go Up

January 26th, 2008 11:23 AM

Have you been paying close attention to our interest rate ride. As the subject line suggests, what goes down must go up! What ride are you on? If your not seriously considering buying a home, you LOSE. I have been in the mortgage business for over 20 years and must say I have taken advantage of every rate drop. I now am on my 4th refinance and am happy to say I just locked in at 4.875%. I pulled out cash and will continue to build my portfolio with CHEAP money. This is as close to legally robbing a Bank that I have ever seen.

Don't sit back and wait for "the bottom" get organized and get in the game!

Posted by John Milano on January 26th, 2008 11:23 AMPost a Comment (1)

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Riches in Real Estate Don't Happen At 2:00am In The Morning

May 17th, 2007 9:36 PM

Ok "yawn" so you think by buying into all the real estate programs you see on T.V. while you are sleep deprived you can quit your day job and make riches? Dream on, "no pun intended"....

Posted by John Milano on May 17th, 2007 9:36 PMPost a Comment (0)

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