Looking Into The Future of Denver Real Estate

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Just over the past few years, it's important to note that the real estate subprime mortgage crisis had an effect on the consumer, not to mention the rate of foreclosures as well. It all depends on what real estate market you are in. It seems that this is what we might be looking at for the next several years. Good thing for Denver, though, is that throughout this housing crisis, the Denver CO real estate market is not as affected as other markets across the country.

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Denver isn't affected by this because property prices haven't been increasing at the same crazy rates as other cities like Las Vegas and San Deigo. Most of Denver's real estate is marked below the national average. Because of this, the value of properties, while declining in some locations, are not declining at nearly the same rates as other cities.

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It costs less to live in Denver than it does to live in both Seattle and San Jose. Additionally, it costs half the price to live in Denver then it would to live in San Francisco, Boston and even New York! That is definitely something to talk about. It is still more expensive to live in Denver then places like the mid west, Atlanta, GA and Dallas, TX.

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According to Rocky Mountain news, the Denver CO real estate market is ranking at the top for overall increases in home value, even during these rocky housing times. It has increased about .03% and they are steadily on the rise. They are still having problems with getting buyers relocated to the Denver area, and purchasing these new homes is still a challenge when these hopeful Denver residents can't sell their existing homes. Even so, it appears that Denver real estate is on the rise.

Looking Into The Future of Denver Real Estate

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Real Estate Investor Home Value Game - How to Become an Expert on Your Market

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Whether you are a relatively new real estate investor or an experienced real estate investor, if you want to become an expert on housing prices in your current real estate market, consider playing the following game. Over the years, I have had many people share a version of this game with me. It was formally taught to me by my real estate broker and then again by a real estate guru that I was a consulting client of. Before this, while I was growing up, my father and I played similar games as we looked at possible investments together.

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Here's how the game works: find someone that is also interested in real estate to partner up with and take a list of recently sold properties with you in the car. One person will be guessing. We'll call him the guesser. The other person will be reading the property information to the guesser. We'll call her the reader.

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First, you drive to a house that recently sold and have the reader tell the guesser the information about the house: beds, baths, square footage, special features and everything else about the property EXCEPT the price. Then, the guesser needs to guess the price that the house sold for. Ideally, you want to be within a couple percent of the value.

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The ultimate goal is for you to be able to drive down the street, see a house for sale and with some basic information about the house, give a reasonable estimate of what it will sell for in your current market. It may take a month to two or three of playing this game for you to get good enough to be able to do this and accurately guess 9 times out of 10 the correct sales price, but it is well worth the time to establish yourself as an expert on market values.

Real Estate Investor Home Value Game - How to Become an Expert on Your Market

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Making Money in the Real Estate Bubble

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An investor in any market will tell you that in order to make money that market needs to be in motion. That is either increasing or decreasing and it is true with stocks, bonds, commodities and real estate. The question is if the real estate market is decreasing how to make money in it.

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You don't turn profits in stable markets. What you need to know how to do is manipulate the buying and selling of stock in both markets. When the NASDAQ was going through its own bubble cycle there were still people who were making millions by making adjustments to their style of investing so that it fit into the current market.

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It is obvious that those investors who purchased at the top of the market and hung on to the declining stocks lost a lot of money. Understanding the different types of trading and how to manage risk can also be used to invest during the current bubble in real estate.

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Remember that no one can predict the future. If anyone ever brings up the term "sure thing" when talking about investments you should immediately ignore them. Especially true if that person is talking about entire market movements. Taking notice of when the prices of stocks increase or decrease or even when showing strange behavior is easy to do. Predicting those changes is much more difficult.

Years before the NASDAQ correction happened Warren Buffet believed that the market was over-valued. Being a value investor Warren took the interesting approach to remain on the sidelines. Then again there are active traders that look to downturns in the market to make their money. Either method could be successful when applying it to the bubble in real estate.

When it comes time for an over-valued market to correct itself there are several ways it can happen. There are investors that think the real estate earnings are out of balance when talking about price to earnings ratios. These ratios refer to the amount of rent collected within a year versus the purchase price of the property. Normally that ration should be right about 150.

There are some areas right now that the ratio is around 400. This earning-ratio could be corrected through the decrease of prices, the increase of rents or some sort of combination. There are some financial experts that say the real estate market could take 20 years to correct.

So that brings up the question of what you are going to do. Will you wait a possible 20 years for the market to change or will you adjust how you invest to make money now? When you talk with financial advisors they speak in terms of controlling the risk relative to the potential to gain in the investment.

If you understand these concepts and follow these steps anyone is able to learn how to invest at times when others perceive the market as a bubble that is dangerous and risky.

Making Money in the Real Estate Bubble

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Oregon Real Estate

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People who want to buy homes somewhere peaceful, tranquil and in the vicinity of the sea will find the Oregon coast a perfect location to build the homes of their choice. The sound of waves splashing on the beaches coupled with the never-ending view of the spectacular ocean has made the Oregon coast an attractive real estate market for homeowners and investors alike. With property values burgeoning in recent years, Oregon coast real estate is an ideal investment option for those who wish to settle in the idyllic location of the region.

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There are a number of real estate agents that specialize in helping potential customers buy and sell property along the Oregon Coastal region. First time buyers and sellers are advised to seek the guidance of an expert real estate agent to make the right decision and handle the legalities of buying or selling property.

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Situated amid the fabulous Pacific Ocean and the Coastal Range Mountains, the Oregon coastline presents an unforgettable experience. It encompasses the pristine exquisiteness of the Pacific Northwest and offers a unique coastal way of life that many people fall in love with.

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The Central Oregon Coast covers Lincoln County, the southern end of Tillamook County and the north end of Lane County, as well as the enchanting Heceta Head Lighthouse and the popular Sea Lion Caves.

A majority of the people residing here were initially attracted to the picturesque splendor that the mighty ocean presents. Many people visit the state and then long to live in this area and enjoy the unique experiences and way of life. While some have succeeded in procuring a property others have failed due to the exorbitant prices of properties in these fabulous locations.

Oregon coast real estate encompasses an extensive range of homes, land, farms and commercial properties. There is something for everyone in this beautiful, scenic and generally peaceful area of Oregon.

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Housing Bubble Causes - Why Did it Happen?

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The Great Housing Bubble was caused by an expansion of credit that enabled irrational exuberance and wild speculation. The expansion of credit came in the form of relaxed loan underwriting terms including high debt-to-income ratios, lower FICO scores, high combined-loan-to-value lending including 100% financing, and loan terms permitting negative amortization.

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Addressing the conditions of expanding credit is a legitimate focus for intervention in the credit markets. Another major lending problem is unrelated to the terms: low documentation standards. The credit crunch that gripped the markets in late 2007 was exacerbated by the rampant fraud and misrepresentation in the loan documents underwriting the loans packaged and sold in the secondary mortgage market. It is essential to an evaluation of the viability of a mortgage note to know if the borrower actually has the income necessary to make the payments. When investors lost confidence in the underlying documents, the whole system seized up, and it was not going to work properly until the documentation improved to reflect the reality of the borrower's financial situation. Any remedy for the housing bubble must address the issue of poor documentation in order to facilitate the smooth operation of the secondary market.

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There are some factors that created the Great Housing Bubble that cannot be directly regulated. One of these is the lax enforcement of existing regulations as described previously. Even though lenders and investors lost a great deal of money during the price crash, their behavior during the bubble was still predatory. Lenders peddled unstable loan programs to borrowers who could not afford the payments. They did not do this to obtain the property as is ordinarily the case with predatory lending; they did it to obtain a fee through loan origination. Since they felt insulated from the losses to these loans being packaged and sold to investors, they were in a position to profit at the expense of borrowers, the definition of predatory lending.

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Another factor that cannot be regulated is the crazy behavior of borrowers caught up in a speculative mania. It is not possible to stop people from overpaying for real estate, but it is possible from preventing them from doing so with borrowed money. If people wish to risk their own equity in property speculation, it is their money to lose, but when lender money is part of the equation, the entire financial system can be put at risk, which it was during the Great Housing Bubble. The fickle nature of borrowers became apparent during the decline of the bubble when many borrowers behaved in a predatory manner refusing to make payments on loans they could have afforded to make because the property had declined in value. Borrowers who were grateful to receive 100% financing and what was perceived at the time to be favorable loan terms were not hesitant to betray the lenders when their speculative investment did not go as planned.

The 30-year fixed-rate conventionally-amortizing mortgage with a reasonable downpayment is the only loan program proven to provide stability in the housing market. Many of the "affordability" products used during the Great Housing Bubble and many of the deviations from traditional underwriting standards created the bubble. Mortgage debt-to-income ratios greater than 28% and total indebtedness greater than 36% have a proven history of default. Despite this fact, debt-to-income ratios greater than 50% were common in the most extreme bubble markets.

Limiting debt-to-income ratios is critical to stopping loan defaults and foreclosures. Lower FICO scores was the hallmark of subprime lending. FICO scores provide a fairly accurate profile of a borrower's willingness and ability to pay their debts as planned. Low FICO scores are synonymous with high default rates. Limiting availability of credit to those with low FICO scores was a historic barrier to home ownership because these people default too much. The free market solved this problem. Subprime was dead.

High combined-loan-to-value (CLTV) lending including 100% financing is also prone to high default rates. In fact, it is more important than FICO score. FICO scores are very good at predicting who will default when down payments are large, but when borrowers have very little of their own money in the transactions, both prime and subprime borrowers defaulted at high rates. Many prime borrowers are more sophisticated financially, and the unscrupulous recognized 100% financing as a perfect too for speculating in the real estate market and passing the risk off to a lender.

The primary culprits that inflated the housing bubble were the negative amortization loan and interest-only loans where lenders qualified buyers on their ability to make only the initial payment. As the Great Housing Bubble began to deflate, Minnesota and some other states passed laws restricting the use of negative amortization loans and required lenders to qualify borrowers based on their ability to make a fully amortized payment. The Minnesota law is a good template for the rest of the nation.

Any proposal to prevent bubbles from reoccurring in the residential real estate market must properly identify the cause, provide a solution that is enforceable, and allow for the unhindered working of the secondary mortgage market. The solutions outlined below are both market-based, meaning it does not require government regulation, and regulatory based, meaning it entails some form of civil or criminal penalties to prevent certain forms of behavior leading to market bubbles.

All changes are difficult to implement and the solutions presented here would be no exception. Any policies which prevent future bubbles will be opposed by those who profit from these activities and homeowners who are in need of the next bubble to get out of the bad deals they entered during the Great Housing Bubble. Despite these difficulties, it is imperative that reform take place, or the country may experience another housing bubble with all the pain and financial hardship it entails.

Housing Bubble Causes - Why Did it Happen?

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QR Code for Real Estate

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You could not know but since ever, I've often been quick to check new advertising ideas as they come out. And since I own codytech.com, it's often been a method to put those ideas on the internet. That was the case when I heard about the QR codes about 2 years ago.

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I read an article on the internet about it and I know they're utilized for literally everything there. You walk within the street, pass by a restaurant and it is possible to see a QR code on the wall, beside the door. You take a picture with you cellphone and you get the menu and pricing on your screen. It's that basic.

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Of course, sky's the limit. It is possible to uncover those code on T-shirt, coffee mugs, and any sales supplies offered, such as Real Estate flyers or enterprise cards.

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Let me give you some suggestions to use them inside your Real Estate career.

1st get that application for your smart phone. They're virtually all totally free to download and totally free to use. They're all offered to use on any smart phone. You will have the ability to uncover a dozen of them just by Googling QR codes app:-)

Then, create your own QR code for whatever you want, whatever it's a phone number, an email or a web site. Personally, I use qrcode.kaywa.com to make them and print them, or copy the image from it.

Secondly, just insert them in each and every piece of advertising you would like to have. Have your web site URL QR code on your flyers and enterprise cards. Print the URL of a specific listing you've and show it on your yard sign. Which will permit possible buyer who pass by to have the pictures of the inside and your details on the spot!

And third, I have experienced a great deal of interest about those QR codes from possible clients. They ask questions and when they get the full picture of it, it turn out to be an enormous listing tool. They see you as a "tech savvy and advanced" Real Estate agent. You'll get the attention of higher end sellers, men and women who are far more into new technologies. Those normally owns higher priced properties.

The cool factor isn't just about showing off. Occasionally it's about showing men and women that you've the capacity to imagine the next generation of real estate technology, that you've what it takes to appeal to the bleeding edge of modern residence shoppers, and-this can't be overlooked-that you're willing to try some thing diverse and pique our quite human curiosity.

So what about those that do not have a QR reader on their phones (the majority of Americans)? Explain it to them on your internet site. Put a URL next to it that corresponds to an area on your web site that discusses QR codes. And, what do you know? You got them to go to your web site, together with your listings, contact info, and all that other killer content you've to capture leads.

QR Code for Real Estate

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Why It's Better To Buy, and Not Rent, Denver Real Estate

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While home ownership in America was once seen as a stabilizing economic force, the housing bubble of the past decade pushed many into mortgages that they couldn't afford when the housing market crashed in 2007. The overleveraging of credit through risky mortgages was seen as a symptom of flawed tax and housing policies, and renting, not buying, is being promoted by some as a safer way to ensure economic stability (1). But the logic behind this new rationale is now flawed, especially in the Front Range where Denver real estate conditions are much improved.

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Denver commercial property was indeed overpriced during the real estate bubble that developed from 2000 to 2007. But as Andy Knudtsen of Economic and Planning Systems, Inc. shows, property prices in the Denver area have actually fallen 12 percent since the bubble burst, stabilizing in March of 2009 (2). This means that consumers looking for Denver homes for sale can now get good deals on properties that feature low, stable prices.

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In fact, the 12 percent average drop in Denver real estate prices was much smaller than in certain areas of the metro area, such as Glendale, where certain Denver condos and apartment prices dropped 33 percent from 2005 to 2010. Often these larger drops in real estate prices were in newer properties and buildings, whose facilities and locations are just as prime now, but whose prices are much more reasonable.

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Of course, for homebuyers who purchased Denver real estate between 2000 and 2007, this means that the price of their Denver property is most likely lower than when they first purchased. For these property owners, there is a silver lining. For starters, rental rates are increasing at a steady pace and vacancy rates are near a 10-year low (2), so there aren't many other options that would be better than their home. Furthermore, foreclosure rates are dropping (3) and the state's population is still increasing by double-digit rates, meaning demand for Denver real estate should return.

For new homeowners not bogged by underwater mortgages, this is a great time to be looking for Denver homes for sale. With Denver property at reduced prices, and many foreclosed houses selling for steep discounts, now is a great time for any Denver homebuyer, whether looking for an investment or a great home to live in. With property values stabilized and the state's population increasing, look for Denver property values to increase in the coming years, keeping Denver real estate as the strong, stabilizing asset it almost always has been.

Why It's Better To Buy, and Not Rent, Denver Real Estate

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Colorado Land For Sale

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Land in Colorado is some of the most beautiful in the world. There are plains and canyons and the mountains are simply breathtaking. In fact, the 30 highest points in the Rocky Mountains lie with in the state. Colorado land for sale includes all these different landscapes.

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Colorado, a state with approximately 5 millions residents, ranks 11th in the nation in per capita personal income at approximately ,000. There is a flat 4.63% income tax regardless of income level. Some of the most notable major corporations in Colorado include Coors beer, Jolly Rancher candy, Celestial Seasoning herbal teas and Qwest communications. The unemployment rate as of April 2010 is at 7.8% which is below the national average at the time.

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Aside from residential properties, there are thousand of listings for Colorado land for sale. There are mountain acreages, miles of flat ranch land, agricultural and industrial vacancies on the market ranging from 00 to over ,000,000. Colorado has maintained its property values in the economic downturn quite well with some areas seeing their values increase while many prices around the US have plummeted. This being said, home prices remain among the highest in the nation with an average listing price being near 0,000. If you're looking for a bargain you might have a hard time finding one in Colorado but that's the price you pay for a little bit of economic stability and the fact that you can live in one of the most scenic states in America.

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Colorado Land For Sale

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Adverse Possession in Colorado - New 2008 Laws Reduce the Abuse

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Adverse Possession is a method to acquire title to land that is owned by another through use. Examples of use might include a fence, driveway, footpath or even a structure being placed on the property of another party. The person claiming ownership must prove the following elements exist in order to have a case:

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o The possession must be OPEN and NOTORIOUS, that is it must be open for all to see. This includes the owner, even if he/she has never actually seen the possession.

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o The possession must be HOSTILE to the actual owner, and must conflict with the owner's rights and interests in the property. The possession must also be EXCLUSIVE in use to the possessor.

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o The possession must be CONTINUOUS and UNINTERRUPTED. For Colorado the statutes specify at least 18 years, and may also be combined with the same possession by a prior owner.

If this all sounds criminal (for some it may be), the legal theory is that by not disputing a neighbor's use of your property by way of a lawsuit, you, as the actual owner have abandoned your rights to the property, either right or wrong.

The Need for Change

A land dispute by two neighbors in Boulder, Colorado in late 2007 that made national headlines and stirred public opinion prompted state legislators to change the law that allowed it to happen. The whole story can be read at the Daily Camera website.

Two State Representatives, Rob Witwer of Evergreen and Ron Tupa of Boulder co-authored a bill to stop what they determined to be outright abuse of the current law. Witwer said "the current law was out of balance and needed to be fixed. It was clear that abuse of adverse possession was much easier in Colorado than in most, if not all jurisdictions."

The New Law

On July 1, 2008 HB 2008-1148 was signed into law by Governor Ritter, and applies to all adverse possession cases following this date.

In addition to the current requirements, the following is also required:

"The person claiming adverse possession had a good faith belief that the person in possession of the property of the owner of record was the actual owner of the property and the belief was reasonable under the particular circumstances."

Also included in the law, judges will have the power to force adverse possessors to pay for the land they do win in court, and to compensate the original owners for back property taxes, and interest.

With the new law the burden of proof will lie with the possessor to prove they have evidence they were the actual owner which should reduce the number of cases appearing before the court. Unfortunately the new law was a little late to apply to the Boulder case.

And, One Other Law-

In the Boulder case, the possessors were a former judge and an attorney. This fact prompted another law to be passed which will restrict judges from hearing cases involving other judges from the same jurisdiction, in an effort to avoid conflicts of interest or the appearance of favoritism.

Submitted by Jerry Hart

Editors note: this article is not meant to provide any legal advice. Always consult an attorney for a particular application.

Jerry is a full time Realtor serving the needs of Buyers and Sellers in the Denver Real Estate market.

Adverse Possession in Colorado - New 2008 Laws Reduce the Abuse

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Selling Your Glendale Home, Are You Asking the Right Price?

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If you have a home in Glendale, Arizona that you'd like to sell, you are in a good position. Glendale is a great community for buying and selling, it's one of the most affordable home communities in the greater Phoenix area.

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Fortunately, Glendale is popular enough that you'll find plenty of people interested in buying your home. On the downside, if you've never sold a home before, you may not have realistic expectations about the sales process. You may be setting yourself up for a fall if you aren't aware of some of the common mistakes to avoid.

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Asking Too Much for Your Home

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Sometimes it's hard to have a great perspective on the asking price for your home. After all, you've probably put a great deal of time, effort and money in making improvements to the property. Unfortunately, if you focus exclusively on the price you think the property is worth, you may lose out on prospective buyers.

Remember that your home will be on the market beside other comparable homes. If your house isn't priced competitively, the home may be quickly passed over by buyers.

Listen carefully to your real estate agent and consider their input. Your agent understands the Glendale market and is going to give you the best price. If you have some doubts, check out zillow.com. This site uses some of the same information as real estate agents, sales of comparable properties, etc. to deliver an accurate home value.

Not Having A Marketing Plan

Before you list your home, you need to have a discussion with your real estate agent about how he or she intends to market your property. What will he or she do to make your property stand out? You want to get as much exposure for your home as possible in the shortest amount of time. The longer your home is on the market, the more opportunity you miss when it comes to finding another home, or you may not be able to complete the purchase of a home you really love.

Not Accepting an Offer

Judging whether to accept an offer is always a little risky, if you take too low of an offer you're missing out on potential money. If you reject an offer because you want something higher, you may find that your property just won't sell. Again, the most important thing you can do is follow the advice of your real estate agent. Glendale is a competitive market, so you should be able to get a good offer on your home. Even before you receive an offer, discuss the absolute minimum that you will accept, and how much room there is for negotiation. It's hard to make decisions in a stressful time, so if you go in with as much information as possible, you can alleviate some of the tension.

Glendale is the perfect community for finding affordable homes and reselling your home to new buyers. Work with an agent you trust and you'll be living in your new Glendale home before you know it.

Selling Your Glendale Home, Are You Asking the Right Price?

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Addressing the Exterior - What Real Estate Agents Do!

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We often hear of the claims that Realtors get more from the sale of their own homes than their clients. This could be because Real Estate Agents know how to get Top Dollar for their homes. Really, they package, market and sell homes for a living.

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When it comes to selling their own homes, this is typically what a real estate agent would do to the exterior before putting it on the market.

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Real estate agents understand the importance of "curb appeal". To beautify the exterior of the home, they know to focus on the driveway, entranceway, landscaping and front door.

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- The front lawn and shrubs are manicured. Gardens are mulched.

- All clutter is removed from the front lawn.

- Cracks in the driveway and walkway are fixed.

- Gutters and downspouts are cleared and in good working order.

- Chipped or fraying paint on door and window frames is removed, and fresh paint is added.

- The front door is painted or replaced if needed.

- The exterior of the house is painted if needed.

Real estate agents understand what it takes to sell homes. By not having to overcome the scepticism that sometimes comes from sellers, the agent can just do what it takes to get the home ready to sell. We all know that making the home shine will typically result in a faster sale at a higher price.

Many sellers think the more fix-up work they do, the higher the price they will get. That's not true. Beyond the necessary fix-ups, you can easily start wasting your money. Never do any unnecessary fix-ups prior to selling.

Addressing the Exterior - What Real Estate Agents Do!

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Buying a Home Using Seller Financing

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Have you been looking at a piece of real estate to call your own, but can't get the financing through a traditional lender? Maybe it's time to look at some other options. When buying a home most people think they can only get financing through a bank, but that isn't so. There are other forms of financing out there. One form, which is quite popular, is known as seller financing.

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With seller financing the buyer pays a certain amount down to the seller and then pays the rest of the mortgage in monthly payments, much like he would a bank. Both parties agree to a certain interest rate which is paid monthly as well. This form of financing can be beneficial for a buyer in a few different ways. First off, homeowners aren't usually as strict when it comes to less-than-perfect credit. They are also more willing to work with a buyer on the type of payment desired, such as balloon or interest only.

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Sometimes they will even allow the plan to be adjusted at a later date to a different type. Generally, homeowners are more flexible with the required down payment, although many of them do prefer a higher payment. Also, the closing costs won't be as expensive because there are no loan points to pay, and the buyer can often move into the house more quickly because he doesn't have to wait for a loan to be approved.

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Seller financing isn't the only non-traditional method of financing, but it is one to consider. Don't give up on getting that house. You never know what a seller will be willing to do to help you out.

Buying a Home Using Seller Financing

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Benefits of Refinancing

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Refinancing a house has number of advantages associated with it. Refinancing may not be a right decision for some circumstances, but it also offers a wide amount of benefits under constructive circumstances. Some benefits that result from Refinancing a home includes lower monthly payments, debt consolidation and also the facility to use the accessible equity in the residence. A decision on whether refinancing a home is essential or not, requires the homeowners to take into account each of these alternatives with respect to their present economical situation.

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Lower Monthly installments:

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Lower monthly payments results in a very attractive incentive for many homeowners who consider refinancing. Most of the homeowners refinance in order to pay bills and decrease monthly payments serve as an immense act for those homeowners who are in need of an opportunity to maximize their savings. While refinancing the homes, if homeowners agree on reduced interest rates, then they will benefit from lower monthly installments that results from choosing refinance.

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Homeowners submit their financial installments each month and this installment can be used to reimburse a fraction of total amount of the loan and also a fraction of the interest. Homeowners can reduce the total, they are forfeiting for both principle and interest, if at all they desire to refinance their house at a Lower interest rate. This is due to a smaller remaining balance or from decreased interest rates. A second finance or mortgage is taken away in order to pay the first mortgage, whenever a house is refinanced. If the homeowner had a few existing mortgage which are few years old, then the owner would have already paid some of the earlier principal dues. This enables the owner to refinance the house with smaller mortgage, because they are required to repay only a smaller debt compared to the purchase cost of the house.

Debt Consolidation:

For the matter of strengthening their finances, most homeowners try to examine refinance options. For homeowners with high interest balance, such as the credit card balance, this can help. Debt consolidation loan allows the homeowners to use the equity accessible with their home as a means of guarantee in order to secure a reduced interest loan. Debt consolidation permits the homeowners to repay a number of extra dues, which includes car loan, credit card debt, student loan etc.

Usually refinancing a home for the idea of debt consolidation doesn't always result in increase of savings. Homeowners often struggle with their monthly installments and in order to repay their monthly installments or bills easily they seek to strengthen their debts. Hence debt consolidation simplifies the method of paying monthly installments.

Homeowners are inundated by the number of installments they need to reimburse each month; hence they are worried in participating with the monthly bill payment programs. The task of writing enormous amounts of check each month and making sure whether they are sent to the correct specified location on time may be overwhelming, even if the worth of these installments are not troublesome. Hence, in order to minimize the number of payments they make in each month, few homeowners refinance their mortgage.

Using the accessible Equity in the Home:

Utilization of the accessible equity in home gives another familiar rationale for refinancing. Most of the homeowners will try to cash out their accessible equity in home for several other reasons, only if they have some amount of equity in their home. The reasons include pursuing or following higher degree of education, a dream trip, starting a company or in order to make some improvements for the house. The homeowners are not restricted on how to utilize the equity and are free to obtain a home equity line of credit, which they can use for any reason. With a home equity line of credit, the amount is not distributed all at once and the homeowners can draw these funds at anytime once it is made available to them. Hence it's totally different from a loan.

Benefits of Refinancing

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Top Family-Friendly Restaurants in Austin

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Dining out with your family should be an event you look forward to instead of a stressful experience. If you know just where to go around Austin, it can be that fun experience you're looking for. Here are a few top choices for family-friendly restaurants that are affordable and have a diverse menu so you'll find something for even the littlest member of your family.

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Gatti's Pizza - Started in Texas more than 40 years ago, this popular pizza place offers signature recipes, a pizza buffet, and a game room that's perfect for the kids. It has more than 15 locations in Austin, for the ultimate in family fun.

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Cost: Less than per person

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Kerbey Lane Cafe - Kerbey Lane has been an Austin landmark since 1980. It has a large menu that includes American favorites, an all-day breakfast, and several choices for kids age 12 and younger. Meals are reasonably priced and are created from fresh ingredients and all-natural meat. There are four locations throughout Austin.

Cost: Less than per person

Salt Lick Barbeque - A well-known barbeque spot in Austin, Salt Lick is a must for families. The restaurant has locations in Round Rock and Driftwood - they serve both delicious plates and all-you-can-eat family style dining at a reasonable price. There are special deals for children 12 and under, and those 4 and under eat free.

Cost: - per person

Frank and Angie's Pizzeria - Frank and Angie's offers a friendly, festive atmosphere and is known for their delicious thin-crust pizza. They also have sandwiches, salads, and desserts that promise to satisfy the whole family.

Cost: About per person

Waterloo Icehouse - A great gathering place for friends and family, Waterloo Icehouse offers seven locations throughout Austin. The restaurant features occasional live music and an extensive kids menu that offers everything from mac & cheese to mini corn dogs.

Cost: - per person

EZ's - Located in North Austin, EZ's is a great choice for a quick-and-easy family meal. They're known for their wood-fired brick-oven pizzas, delicious burgers and plenty of kids' menu options.

Cost: - per person

Next time you're looking for a delicious spot for your family dinner, check out one of the above restaurants. They're sure to please every member of your family.

Top Family-Friendly Restaurants in Austin

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Colorado Bank Foreclosures Available Today

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Foreclosure listings are bursting at the seams, and properties found in Colorado are no exception. Foreclosures occur due to many reasons including job loss, medical issues, death of a spouse, and divorce just to name a few. Newer reasons for the sudden rise in foreclosures have to do with lending practices. Many persons not able to qualify for traditional loans were offered loans that gave them lower payments now, worry about the future later. Now that these payments have drastically increased, individuals have found that not only can they not afford the new payment amounts, they cannot afford to refinance and the housing market is in a downward spiral. Homes are sitting on the market for longer periods of time, and simply are not selling. Hence, the foreclosure listings are growing.

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Now, if you are in the market for new housing, you are in luck. The opportunities of foreclosure homes comes in all sizes from condominiums to McMansions. You can find a first home, a move up home, a vacation home or an investment home which you can rent out to others. Or, another popular trend is "flipping" a home. Regardless of the reason for seeking new property, a foreclosure listing is the perfect source for properties at below market value. Real Estate is still considered the safest place to put your money, and the properties found on foreclosure listings are no exception and possibly bring an added bonus of built in equity.

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A good foreclosure listing will give you a comprehensive detailed listo of the properties attributes. Here's a list to look for when reading foreclosure listings: A.) The date of the listing -- if the listing is old, it may not still be active. B.) The complete address of the property. C.) Details such as square footage, number of rooms, taxes, school district and any amenities pertaining to the house. D.) The homeowner, realtor or lenders contact information. The next step is to research the market value of the house and compare it to the asking price. Negotiation is always an option, but your research needs to not only back up your offer price, but satisfy your investment needs.

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Colorado foreclosure listings contain condo's, single family homes, duplexes, and that special ski chalet. The opportunities are endless, be sure to explore and discover them all before your next real estate investment.

Colorado Bank Foreclosures Available Today

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Protect Your Place and Your Peace of Mind

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As you look for a new home, plan your move or settle in to your new house, you may want to think about emergency planning. The increased number of severe weather incidents is heating up our TV sets, bringing home the aftermath of a major (or minor) disaster. Rather than living in fear or ignoring the possibility, you can take a few simple steps to prepare yourself and your family, while mitigating the potential for damage to your home.

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The first step is to assess your risk - what types of disasters could you potentially face? If you are looking to relocate, you may want to choose a home that is not in a flood plain, on a fault line or in a wildfire prone area. Is your current dwelling at risk of an earthquake, hurricane or ice storm? Understanding your area will help you decide what kind of action makes sense.

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There are a number of things you can do to protect your property. For very little cost you can install smoke detectors (remember to test them regularly), which are a necessity in every home. If you live in a wildfire prone area, clear brush from around your home and ask your local fire department to assess the dwelling. If you live in an earthquake zone, secure heavy items, like bookshelves and hot water heaters, in the home. This will protect your family from injury and prevent further damage. If you're at risk for hurricanes invest in storm windows or cut to fit plywood.

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Create a plan for your home that includes an escape route and an out of town contact number should your family be separated. Practice it will all members of the household. Know how to turn off the utilities.

Prepare an evacuation or "grab and go" kit. This should include copies of all your important papers including financial and family records, medical information, copies of prescriptions, some cash or traveler's checks, a list of emergency contacts, bank information and insurance policies. Also include food and water, first aid supplies, tools, emergency supplies, clothing and bedding.

Make a household inventory -keeping a written description of your belongings will help you when it's time to make an insurance claim. If you have access to a camera or a video camera make a visual record of your home's contents - it will make your claim that much stronger. Note how much items cost, record serial numbers, and don't forget to include your vehicles and the contents of your garage. Remember that having insurance is also important - without it you may find yourself facing the loss of your possessions with no means to replace them.

For more ideas on how to prepare and protect your home and family visit the many emergency preparedness sites on the web, because being prepared brings peace of mind.

Protect Your Place and Your Peace of Mind

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Buying a Homes in San Jose CA - Is Now the Time to Buy San Jose Real Estate?

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There are many things about San Jose real estate that you will want to know before you begin getting serious about the homes for sale there. As of October 2010, there are specific price trends, demand trends, total inventory of homes, and market conditions that you should educate yourself about. This will help you know when and where to buy your first or next home in San Jose, California.

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Prices on homes for San Jose real estate are looking very good right now. In November of last year, prices were a bit steep at a median of 0,000 as opposed to just under 0,000 now for an identical home. Keep in mind that "median" is not the same as "average." In real estate, medians are generally used instead of averages because a few high-end homes can skew the numbers significantly. By calculating the median, or midpoint, a more accurate representation of local housing prices is given.

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The demand for homes raised and lowered a bit from January to May of this year. In May, the demand for house skyrocketed in the popular spring buying time as the average number of days on the market plummeted from 150 days to about 80. Since then, the number of days that San Jose real estate stays on the market before being sold has leveled out at about 100.

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The amount of "inventory" simply means the amount of San Jose real estate that is for sale. When the inventory is higher, there is a great supply for buyers to choose from, allowing them to have a greater say in setting the price.The number of homes for sale in San Jose has been climbing steadily since mid January of this year. Then there were 1,500 homes for sale and as of October 3, 2010, 2,858 homes were for sale.

The market conditions have been heading steadily in one direction since January of this year. By taking median price, inventory levels and days on the market into consideration, it is possible to calculate what kind of market it is. Currently, listed homes can last for several months on the market while maintaining a current sale rate. This is called a "cold market" or a buyer's market. In markets like this, prices are bound to fall and buyers can negotiate lower prices. This means if you are interested in investing in San Jose real estate, now is the time to do so!

Buying a Homes in San Jose CA - Is Now the Time to Buy San Jose Real Estate?

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Living In Colorado - A Healthy Environment

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Time and again the residents of the State of Colorado rank as amongst the healthiest people in all of the United States. One of the reasons that the people who populate Colorado get such high marks when it comes to health and fitness rests in the reality that recreational options abound in the Centennial State. From skiing and snowboarding the wintertime to taking on the rapids of the Colorado River in the summertime to hiking and camping adventures the entire year around, Colorado offers it all.

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Beyond plentiful recreational opportunities, a high percentage of the Colorado population is also extremely proactive when it comes to issues of health and wellness. For example, many a Coloradoan takes advantage of the latest medical technologies such as the body scan or the heart scan as part of their wellness regimens. Centers that provide such important services as a body scan or heart scan can be found in many of the Colorado communities along both sides of the Rocky Mountains.

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In addition to recreational activities that have garnered Colorado its reputation as being an active person's paradise, Denver as well as some other Colorado communities have set themselves apart as being leading cultural and entertainment centers in the U.S. West. Denver is home to a magnificent performing arts complex that is one of the largest in the world. In addition, fine restaurants and bistros featuring an eclectic mix of menus dot the entire Denver Metro area.

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Over the course of the past thirty years, Denver has transformed from a rather sleepy "cow-town" to a very diverse, cosmopolitan community. The city itself has become a prime location for conventions and conferences of all types and sizes.

On the Western Slope of Colorado there are numerous communities that hearken back to a bygone area. Quaint and gracious communities like Grand Junction combine historic architecture with beautiful natural surroundings.

If gambling is a person's favored past time, there are Colorado communities in which the slots spin and the cards fly. Black Hawk and Georgetown are two mountain towns in which casinos and upscale hotels line Main Street. These towns are situated in the Rocky Mountain foothills and are a short drive from Denver.

There are a number of Colorado communities that rightly have been pegged "playgrounds for the rich and famous" but that are also attractive venues for lesser known folks as well. Aspen, Vail and Telluride all attract entertainers, business leaders and the like. These communities also underscore the atmosphere of health and vitality that permeates the state. In these locales recreational activities are a major focus. As with the case throughout the state, there are professionals that assist residents in advancing a proactive healthy living regimen through the use of technologies such as the body scan and the heart scan.

When all is said and done, the vibrant atmosphere of Colorado seems to inspire people of all ages and from all walks of life to take an active - indeed, proactive - interest in their health and wellness. As a result, it is no surprise that one finds professional services offering such procedures as a body scan and a heart scan with great frequency in numerous Colorado communities.

Living In Colorado - A Healthy Environment

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Some of the Most Important Factors to Consider With Real Estate Investing

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For a lot of people, their very first piece of investment-minded real estate is a really big deal to them. They get very excited when they make the decision that they are going to own property, and they get similarly excited when they first start looking around at the different properties that they want to purchase. It's a special purchase, a special property, and special investment, and it's important that you keep a number of important factors in mind when making the decision about which you are going to purchase. Some of these factors are common sense, while others are things that you might not have ever taken into consideration.

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The first thing you need to keep in mind when looking for your first investment property is whether or not you like the property. Obviously you should not make your purchase solely based on your gut, or solely based on whether or not you like it. At the end of the day it's an investment property, and what's most important is the fact that it provides a high return on that investment. But it still is going to be a special property for you, being your first, so it's important that you take the time to feel it out and make sure that it's a property that you really like too.

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The most important factor to take into consideration when picking out your first property is the location and neighborhood of the property. Nothing is going to influence the success of your investment more than the location it lies in. A great location will make the whole process easier, while a terrible location is going to be problematic to say the least. Chances are if this is your first property investment than you aren't going to have a lot of money to spend, so you might not be able to make a purchase in the highest quality neighborhoods. For your first property, you'll want to find an affordable property in a neighborhood that is likely to increase noticeably in value and quality over the next few years. Just because you can't afford a top-location property doesn't mean you can't afford a property that will grow into one during the length of your ownership.

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Old properties sometimes fit the bill. Depending on the location and neighborhood, an older property can be really affordable. There are certainly those historic properties that sit in extremely well off neighborhoods that are probably beyond the capital that you can raise for your first purchase, but there are plenty of great older properties that are in good condition but are in lesser neighborhoods. While these properties usually require a certain level of repair, they often are affordable and in demand. More and more people these days are interested in moving in to older, historic buildings and fixing them up, and this is a trend that is likely to continue on for some time. This means that there is a lot of opportunity in purchasing one of these properties now and benefiting from the increased interest and cost of them over the next couple years.

Some of the Most Important Factors to Consider With Real Estate Investing

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Estate Planning Measures

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A "good" may include all activities such as a person, property, money and claims to be defined. Therefore, "Estate Planning" will take care of the property. Many of us have one or more people to take a look at our camp, and, of course, want to offer the most value and the least amount of taxes. To do this, various measures to be studied and considered, so that the judicial approval process as smooth as possibleand that your interests are addressed. The two most popular estate planning measures are wills and trusts. They both outline how you want your assets distributed and they have other benefits as well.

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Wills

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A will, also referred to as a testament, gives you the opportunity to select an executor, which is a person you trust to properly carry out your wishes as outlined in your will. Your will also typically names one or more beneficiaries to whom the assets will go and how those assets will be transferred. If you have minor children in your care, you can select one of more guardians for them.

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If you do not make these designations through your will, the decisions will probably be left to the courts. Keep in mind that property distributed through your will is subject to probate, which can be a time-consuming and costly process. It is recommended that most everyone has a will.

Trusts

Trusts are actual legal entities, whereby wills are not. Trusts do outline how you want your assets distributed, however, you may also customize the distribution of your estate. There are added benefits such as property management and probate avoidance. A trust represents an agreement between three parties whereby real or personal property is transferred from one party to the next, to be held for the third party, or beneficiary. The holder of the property is referred to as a "trustee". Anyone with a trust is still recommended to have a will so this isn't a "one or the other" situation.

A living trust goes into effect while you are still alive. The way it works is this: you transfer title to your property from your name to that of the trustee of the living trust. You can use the trust to gather your property under one document so that it is distributed efficiently after your death. In fact, you can appoint yourself as the trustee so that you have control over the assets. Legally, you no longer own any of the assets in your trust as your trust now owns these assets. But, because you appoint yourself the trustee, you still maintain complete control. One advantage is that it allows for an easier way to organize your assets and manage them as a single unit. You can buy or sell as you see fit or give away assets. Most importantly, a trust allows for quick and efficient property distribution in the event of your death.

Other documents important to have in the event of a severe illness or you are incapacitated in some way include a durable power of attorney, a health care proxy and a living will.

These documents are so useful if you choose to use them. The first recommended step would be to get a will written and signed with witnesses. Then, look into a trust and the measures of incapacity. Though it takes time and thought to put these into place, but because of the possibly consequences, it is worth the work.

Estate Planning Measures

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Top Tips for Buying Real Estate in Colorado

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The process of buying a new home can be difficult and stressful if you are not prepared. Follow these simple tips to ensure that your new home buying process will be as stress-free as possible!

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1. Use a qualified Realtor. The hunt for a new home starts simply enough. Before you know it, though, the process can get very tricky and involved. Having a realtor on your side will help immensely.

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2. Don't speak to the seller or the other realtor until the contract has been signed. Leave all communications to the professionals. You don't want to unintentionally give too much information away that might end up costing you money.

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3. Be ready to purchase your new home. Getting pre-qualified, or even better pre-approved, will strengthen your negotiating position and help you get a better price on your new Colorado home.

4. Look at houses in your price range. If you look at homes that are just above your price range, you can get emotionally involved in a house that you will end up being able to not afford. By restricting your house hunt to homes you can afford, you avoid this potential problem.

5. Write your contract so that it will be accepted and not simply countered. This will help you avoid the emotional blow ups and losing a deal. Think of negotiations as an art form rather than being extremely ego-involved. Respect all involved parties.

If you follow these tips, you will be well on your way to enjoying not only your new Colorado home, but also the entire sales process. Buying a Colorado house doesn't have to be painful and stressful, if you are prepared!

Top Tips for Buying Real Estate in Colorado

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How to Handle Decreasing Home Value

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We don't like to think of home values declining. But like any investment, there are ups and downs. The truth is that your home can increase in value, and it can decrease.

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You may be worried. You don't want your biggest investment to go down the drain. Well, don't get too worked up.

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If you can afford your monthly payments and aren't planning on moving soon, you have nothing to fear. You have a roof over your head and it is worth a lot to you.

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The equity in your home is something that grows over time. The ideal situation has it grow until you sell, then you use it to help purchase your next home. But it is also there for emergencies if you need it or for improvements. We take comfort in it being there.

If you have a good mortgage, bought at a good time and didn't overspend on your home, you shouldn't have too much to fret about. The biggest fear is that your house will decrease in value so that you owe more than it is worth. Many recent homeowners who bought at the peak of the hot housing market are now facing that situation.

But you don't need to worry about it unless you need to sell. If you can make your payments, you shouldn't have any problems. Just as prices go up and down, they will go up again. By staying in your home, you are able to wait until there is another seller's market to put your home up for sale. By continuing your payments you are countering the decrease in equity by paying off what you owe.

If you have an adjustable rate home equity line of credit and you think interest rates are going to rise and your home value will go down, you might want to go ahead and get that paid off as soon as possible. By paying off what you owe against your equity, you are freeing up yourself to not owe more than the home is worth.

When home values are on the decline in your area, you don't want to borrow against your equity. You may think that you need to take advantage of your equity as it is now and go ahead and take out the line of credit. That makes sense -- you may be able to get more now than you will later. But you will also be putting yourself at risk for owing more than your home is worth. You don't want to have to write a check at closing, just to get your home sold.

If you really want to take advantage of the equity in your home before it goes down any further, you need to sell and move into a cheaper home. That is the only safe way to cash out your equity in a declining market.

This isn't the time to be making improvements to your home or remodeling with the hopes of bringing up the value. If you are doing it for yourself and plan to stay in the home for a while, then by all means, go ahead. But if you are doing it to have a better selling price in the near future, you need to be very careful. You don't want to put more in than you will get back.

A declining market is simple to understand. When interest rates rise, there are fewer people able to afford your home. With an increase of homes on the market, there is more for people to choose from. This means that you may have a harder time selling your home.

If you are facing a negative equity situation on your home, give it time and don't worry. Markets go up as easily as they go down. And not all areas of the country experience the same real estate climate. You could be in an area where prices are going up. If you are, be careful. If you aren't, hang in there.

How to Handle Decreasing Home Value

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Setting Goals For Your First Home Purchase

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It can seem an insurmountable task sometimes to start saving for your first home. There is always that balance that is needed in life as well, i.e. how to enjoy some of your money while trying to save most of it! We are often told that in order to realize any achievement, as in going on a diet, or training for a marathon, we must break the process down into small steps. Small stages in our goal setting is one way that we can encourage ourselves to succeed.

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The small stages are just a convenient way of stepping nearer to the big goal - hence the term stepping stone. As we pass each stepping - stone we are actually moving nearer to the impossible-to-achieve dream. It is easy to think of setting up goals for running a marathon: you can just add a little more distance or speed each week. However, it is not so obvious to find a system to save up for your first house.

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Generally speaking, stepping - stones need to be specific and they need to be in writing. Writing it out means you really have to think about it, and you can stick a copy in front of your sink/fridge/TV etc wherever you will keep seeing it. This is just to remind you and give you some reinforcement, so that your mind is aware of what you are aiming for. If you draw up the whole list of goals at once, you can draw a thick red line through each one as you succeed!

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Goal setting for most things seem to have different sections to consider. Your stepping-stones must be measurable, they must be written in precise language, they must be achievable but not easy, they must fit in with your life-style and they must have a time limit. Phew! This could be fairly demanding! The first item - measurable - can be difficult, because often we will just think in non-measurable terms, like: I want to run 26 miles, I want to start saving for a house. This is not only an unrealistic challenge, it even makes you want to give up!

If stepping- stones are used, they sound more reachable: I want to be able to run one mile; I want to be able to save two hundred dollars. For the time factor, you could add 'every month'. If you want to be more precise you could add that it must go into a separate account by the 7th of each month. It is a good incentive to open an account specifically for your savings. That type of stepping stone is probably too easily achievable and not a real challenge. You can keep saving the two hundred dollars, but try and add another. Perhaps you want to buy a home while the foreclosure deals are still available. So you want to have a bigger push.

The experts (!) say that you have at least a year for this type of opportunity - most feel it will go well into 2009.You could have an additional stepping stone of planning to work for the summer, while there are more casual jobs around. Most of us will automatically fit the goal into our lifestyle, for instance, we will not plan to earn extra cash offering lessons in piano, if we can't read a word of music etc!

When you have drawn up a schedule it may look something like this:

Measurable: I know I can save 0.00 per month.

Challenging yet achievable: I am going to look for a summer job in 08 and 09 and save an extra 0.00 a month.

Precise: I will have funds automatically transferred to a new savings account by the 7th of each month.

Time specific: I will have ,200 accrued by saving this way.

Lifestyle: I will advertise to baby sit on weekends for extra savings and put it into the savings account.

If you need more incentive, draw up a monthly chart and draw a red line through every successful 'save"! And here's a sneaky thought: sometimes when parents see kids trying so hard, they pitch in a little extra for Christmas and birthdays - so don't keep your savings plan a secret!!

Setting Goals For Your First Home Purchase

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FASB Proposed Lease Accounting Changes - Impacts on Commercial Real Estate

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Introduction:

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The Financial Accounting Standards Board (FASB) on August, 17, 2010 released their "exposure draft" requiring companies to record nearly all leases on their balance sheets as a "right to use" asset, and a corresponding "future lease payment - liability".  What does this mean to your business in layman terms?  This proposal in essence does away with operating leases; all leases (unless immaterial) would be capitalized using the present value of the minimum lease payments.  Therefore, businesses who in the past had off-balance sheet lease obligations, must now record these obligations on their balance sheet.

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A key point to consider with regards to the proposed lease accounting changes is that, in all likelihood, existing operating leases, signed prior to the implementation of the new rules, will require reclassification as capital leases that must be accounted for on the balance sheet. This means that real estate professionals must immediately consider the effect that existing and planned leases will have on financial statements once the proposed rules are implemented. Since operating lease obligations can represent a larger liability than all balance sheet assets combined, lease reclassification can significantly alter the businesses balance sheet.

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The impact of recording these lease obligations on the balance sheet can have multiple impacts, such as: businesses needing to alert their lenders as they will now be non-compliant with their loan covenants, negotiating new loan covenants with the lenders due to the restated financial statements, ratios used to evaluate a businesses potential of credit will be adversely impacted and the restatement of a lessee's financial statement once the change takes effect may result in a lower equity balance, and changes to various accounting ratios

The conceptual basis for lease accounting would change from determining when "substantially all the benefits and risks of ownership" have been transferred, to recognizing "right to use" as an asset and apportioning assets (and obligations) between the lessee and the lessor.

As part of FASB's announcement, the Board stated that in their view "the current accounting in this area does not clearly portray the resources and obligations arising from lease transactions." This suggests that the final result will likely require more leasing activity to be reflected on the balance sheet than is currently the case. In other words, many, perhaps virtually all, leases now considered operating are likely to be considered capital under the new standards. Thus, many companies with large operating lease portfolios are likely to see a material change on their corporate financial statements.

Part of the purpose for this is to coordinate lease accounting standards with the International Accounting Standards Board (IASB), which sets accounting standards for Europe and many other countries. The IASB and FASB currently have substantial differences in their treatment of leases; particularly notable is that the "bright line" tests of FAS 13 (whether the lease term is 75% or more of the economic life, and whether the present value of the rents is 90% or more of the fair value) are not used by the IASB, which prefers a "facts and circumstances" approach that entails more judgment calls. Both, however, have the concept of capital (or finance) and operating leases, however the dividing line is drawn between such leases.

The FASB will accept public comments on this proposed change through December 15, 2010.  If FASB makes a final decision in 2011 regarding this proposed change to lease accounting, the new rules will go into effect in 2013.

Additionally, the staff of the Securities and Exchange Commission reported in a report mandated under Sarbanes-Oxley, that the amount of operating leases which are kept off the balance sheet is estimated at .25 trillion that would be transferred to corporate balance sheets if this proposed accounting change is adopted.

Commercial Real Estate:

The impact on the Commercial Real Estate market would be substantial and will have a significant impact on commercial tenants and landlords.  David Nebiker, Managing Partner of ProTenant (a commercial real estate firm that focuses on assisting Denver and regional companies to strategize, develop, and implement long-term, comprehensive facility solutions) added "this proposed change not only effects the tenants and landlords, but brokers as it increases the complexity of lease agreements and provides a strong impetus for tenants to execute shorter term leases".  

The shorter term leases create financing issues for property owners as lenders and investors prefer longer term leases to secure their investment.  Therefore, landlords should secure financing for purchase or refinance prior to the implementation of this regulation, as financing will be considerably more difficult the future. 

This accounting change will increase the administrative burden on companies and the leasing premium for single tenant buildings will effectively be eliminated.  John McAslan an Associate at ProTenant added "the impact of this proposed change will have a significant impact on leasing behavior. Lessors of single tenant buildings will ask themselves why not just own the building, if I have to record it on my financial statements anyway?" 

Under the proposed rules, tenants would have to capitalize the present value of virtually all "likely" lease obligations on the corporate balance sheets.  FASB views leasing essentially as a form of financing in which the landlord is letting a tenant use a capital asset, in exchange for a lease payment that includes the principal and interest, similar to a mortgage.

David Nebiker said "the regulators have missed the point of why most businesses lease and that is for flexibility as their workforce expands and contracts, as location needs change, and businesses would rather invest their cash in producing revenue growth, rather than owning real estate."

The proposed accounting changes will also impact landlords, especially business that are publically traded or have public debt with audited financial statements.  Mall owners and trusts will required to perform analysis for each tenant located in their buildings or malls, analyzing the terms of occupancy and contingent lease rates.

Proactive landlords, tenants and brokers need to familiarize themselves with the proposed standards that could take effect in 2013 and begin to negotiate leases accordingly.

Conclusion:

The end result of this proposed lease accounting change is a greater compliance burden for the lessee as all leases will have a deferred tax component, will be carried on the balance sheet, will require periodic reassessment and may require more detailed financial statement disclosure.

Therefore, lessors need to know how to structure and sell transactions that will be desirable to lessees in the future. Many lessees will realize that the new rules take away the off balance sheet benefits FASB 13 afforded them in the past, and will determine leasing to be a less beneficial option. They may also see the new standards as being more cumbersome and complicated to account for and disclose. Finally, it will become a challenge for every lessor and commercial real estate broker to find a new approach for marketing commercial real estate leases that make them more attractive than owning.

However, this proposed accounting change to FAS 13 could potentially stimulate a lack luster commercial real estate market in 2011 and 2012 as businesses decided to purchase property rather than deal with the administrative issues of leasing in 2013 and beyond.

In conclusion, it is recommended that landlords and tenants begin preparing for this change by reviewing their leases with their commercial real estate broker and discussing the financial ramifications with their CFO, outside accountant and tax accountant to avoid potential financial surprises if/when the accounting changes are adopted. 

Both David Nebiker and John McAslan of ProTenant indicated their entire corporate team are continually educating themselves and advising their clients about these potential changes on a pro-active basis.  

Addendum - Definition of Capital and Operating Leases:

The basic concept of lease accounting is that some leases are merely rentals, whereas others are effectively purchases. As an example, if a company rents office space for a year, the space is worth nearly as much at the end of the year as when the lease started; the company is simply using it for a short period of time, and this is an example of an operating lease. 

However, if a company leases a computer for five years, and at the end of the lease the computer is nearly worthless. The lessor (the company who receives the lease payments) anticipates this, and charges the lessee (the company who uses the asset) a lease payment that will recover all of the lease's costs, including a profit.  This transaction is called a capital lease, however it is essentially a purchase with a loan, as such an asset and liability must be recorded on the lessee's financial statements. Essentially, the capital lease payments are considered repayments of a loan; depreciation and interest expense, rather than lease expense, are then recorded on the income statement.

Operating leases do not normally affect a company's balance sheet. There is, however, one exception. If a lease has scheduled changes in the lease payment (for instance, a planned increase for inflation, or a lease holiday for the first six months), the rent expense is to be recognized on an equal basis over the life of the lease. The difference between the lease expense recognized and the lease actually paid is considered a deferred liability (for the lessee, if the leases are increasing) or asset (if decreasing).

Whether capital or operating, the future minimum lease commitments must also be disclosed as a footnote in the financial statements. The lease commitment must be broken out by year for the first five years, and then all remaining rents are combined.

 A lease is capital if any one of the following four tests is met:

 1) The lease conveys ownership to the lessee at the end of the lease term;

 2) The lessee has an option to purchase the asset at a bargain price at the end of the lease term

 3) The term of the lease is 75% or more of the economic life of the asset.

 4) The present value of the rents, using the lessee's incremental borrowing rate, is 90% or more of the fair market value of the asset.

Each of these criteria, and their components, are described in more detail in FAS 13 (codified as section L10 of the FASB Current Text or ASC 840 of the Codification).

FASB Proposed Lease Accounting Changes - Impacts on Commercial Real Estate

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10 Common Traits of Real Estate Billionaires

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Did you know that 46 out of the world's 691 billionaires made their fortunes in the real estate industry? Well, according to Forbes magazine's 2005 annual list of "The World's Richest People," this elite group have quite a bit in common between their habits, lifestyles, and business styles. Here are some unifying qualities shared by America's richest real estate moguls.

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1. Go commercial. Billionaires who make their fortunes in real estate don't do it in residential. They are moguls with an empire of owned and operated office buildings, shopping centers, apartment complexes, and luxury hotels. That strategy works particularly well for "America's richest landlord," 73-year-old Newport Beach Resident Donald Bren, the wealthiest man in American real estate. This self-made millionaire, with a net worth of .3 billion, made much of his money as chairman of The Irvine Company, a privately held real estate investment company known for creating balanced, sustainable, quality communities like the 93,000-acre Irvine Ranch in Orange County. Finished plots sell for more than million an acre. The ranch also has 400 office buildings, 35 shopping centers, 80 apartment complexes and 2 luxury hotels. Bren is 6th wealthiest real estate billionaire and the 122nd richest man in the world. He is also one of real estate's great philanthropists.

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2. Do more than invest. Making big money in real estate goes beyond buying property and waiting for it to appreciate in value. It's all about improvements. John Sobrato of Sobrato Development Companies calls Atherton, home, but he made his fortune in Silicon Valley - for more than 40 years, Sobrato's SDC has developed real estate in Silicon Valley - specializing in facilities for high tech and R&D companies. Another self-made man, he began in 1953 with one of the first "tilt-up" buildings in Santa Clara County. Sobrato, who owns and manages the buildings it constructs and maintains single tenant occupancy, boasts a portfolio of .5 billion. His assets include land throughout Silicon Valley, San Jose, Fremont, Newark and Santa Clara and he has developed in excess of 7,000 rental units.

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3. Be able to see the property for what it could be. Just because you buy a shopping complex doesn't mean that's the highest and best use of the property. Know the local zoning codes and be open to the possibilities...Los Angelino Ed Roski did just that. Roski is the founder of Majestic Realty, the largest commercial builder in Los Angeles, boasting an office, retail and industrial portfolio totaling more than 55 million square feet. The USC grad with a net worth of .1 billion saw the highest and best use of the formerly blighted area near the convention center and built the Staples Center with Philip Anschutz. Roski is also a minority owner of the Lakers and the Kings. Headquartered in City of Industry, Majestic Realty also has offices in Atlanta, Dallas, Denver, and Las Vegas - where they have a 400-acre business park and 3 million square feet of casinos.

4. Be tenacious and relentless. Billionaires don't let obstacles or pitfalls keep them from achieving their goals. Newport Beach billionaire George Argyros is the grandson of Greek immigrants. Argyros began by running a Palm Springs grocery. He graduated to buying and selling corner lots at busy intersections for gas stations. Turned to apartments in 1968. Today, as part of Arnel & Affiliates, Argyros manages apartments and commercial properties in southern California. He has a net worth of .2 billion.

5. Have a thick skin. People can be resentful and jealous of successful people. Don't let criticism of your work deter you from your goals. Consider Red Emmerson - the second wealthiest real estate titan in California. Emmerson is the largest private forestland holder in North America - assets include 1.52 million acres in Northern California, timberland stretching more than 350 miles from Mount Shasta to Yosemite National Park. For the last 20 years, while other logging companies retrenched or relocated, Emmerson, and his company - Sierra Pacific Industries - quietly grew into the second-largest private landowner in the United States. Needless to say, Sierra Pacific is a darling of environmental groups.

6. Have superior information. If you do more research than your competitors, you'll have an advantage in any transaction. Self-made billionaire Carl Berg was a loan processor before investing in Silicon Valley commercial real estate with John Sobrato in the 1960s. He struck out on own, forming Mission West Properties, a real estate investment trust (REIT) in Silicon Valley. Berg owns a controlling stake in the REIT, which focuses on single-tenant research and development and office properties in Silicon Valley. Mission West now owns and manages more than 100 properties, major tenants include Microsoft and Apple Computer. Currently, the Atherton-based businessman boasts a portfolio of .2 billion.

7. Don't accept the cards you're dealt. Forbes notes that while one-third of the world's 46 billionaires who make their money in real estate inherited and then grew their fortunes, two-thirds are self-made. Stockton-based A.G. Spanos Companies are known for building, managing, and selling multi-family housing units; constructing master-planned communities, and developing land. Although California based, they have expanded to build more than 100,000 apartments in 18 states since 1960. A.G. Spanos Companies have also developed top-class office space in San Joaquin County. Alex Spanos, owner of the NFL's San Diego Chargers, operates the company with his sons Dean (president and CEO) and Michael Spanos (EVP). Spanos, whose net worth is .1 billion has pledged 0 million to San Diego for a new stadium for their football team.

8. Live in California. Of the 21 U.S. billionaires who made their fortune in real estate, more than one-third live in Atherton, Los Angeles, Newport Beach, Palo Alto, or Stockton.

9. Get, and stay, married. Of the 43 real estate billionaires whose marital status is known, according to Forbes, 37 are married, while only three are divorced and three are widowed.

10. Go back to school. Of the 26 real estate billionaires whose educational attainments are known, 20 have a college degree or higher. Five made it on high school diplomas, and one is a high-school dropout. John Arrillaga is a big donor to alma mater Stanford University. Arrillaga + Richard Peery are two of 2 of Silicon Valley's biggest commercial landlords. In the 1960s, they converted farmland into pricey office space. Peery and Arrillaga are lifelong business partners who avoid debt, and the media. Each has net worth of billion."

10 Common Traits of Real Estate Billionaires

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What's Happening In Real Estate Right Now And Where Is It Going?

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Initial analysis of the current market

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Update 2 on Gold

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House prices in South Florida 3 rd

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4 National Real Estate

5 of the inverted yield curve Is Still

6 What this means to you

Initial analysis of the current market

As an analyst of the economy and the housing market, we must be patient to see what unfolds and to see if the predictions are good or bad. You never know if it's good orevil, they must have a sense of humility about it, so I'm not blind to the reality of the market.

In March 2006, my eBook How to change the place of the Prosper real estate market. Protect yourself from the bubble now! said he wanted to slow down in a short period of time in the housing market considerably and become a real drag on the economy. We see this slowdown in the economy right now and I'm not too far from slowwell. History has repeatedly shown that the slowdown in the housing market and construction almost always leads to an economic downturn in American history.

Let's look at what happens in the following areas to see what we can from them shine like gold, real estate in South Florida, the yield curve National real estate industry / economy and see what this means for you:

Gold 2

If you read thisNewsletter and / or eBook, you know, I am a big fan of investing in gold. Why? Because I think the dollar is in serious financial difficulties. But gold has risen against all currencies, not just the U.S. dollar.

Why gold has risen? Gold is a neutral form of money, can not be printed by a government and so there is a long term hedge against inflation. James Burton, CEO of Gold Council, said recently: "The gold is very important Foreign exchange reserves of central banks, as a reserve currency only, that no liability. So it is a defense against the unknown risks. It is a long term hedge against inflation and as a hedge of dollars when you demonstrated good properties of diversification of a portfolio of assets of central bank reserves a. "

I agree with Mr. Burton to 100%. I think we will have a golden bull again and I have to take advantage of this bubble potential to invest in gold (think real-time>estate prices around the year 2002 - wouldn't you like to have bought more real estate back then?)

I had previously recommended that you buy gold when it was between 0 and 0 an ounce. Currently, gold is trading at around 0 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the 0 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the 0 - 0 level, I like it at these levels as a buy. I believe that gold will go to 0 an ounce before the end of 2007.

3. Real Estate in South Florida

Real estate in South Florida has been hit hard by this slowdown as it was one of the largest advancers during the housing boom. The combination of rising homes for sale on the market, the amazing amount of construction occurring in the area and higher interest rates have been three of the major factors of the slowdown.

For every home that sold in the South Florida area in 2006, an average of 14 did not sell according to the Multiple Listing Service (MLS) data. The number of homes available for sale on the market doubled to around 66,000, as sales slowed to their lowest level in 10 years.

Even though home prices were up for the year of 2006, the average asking price for homes in December was down about 13 percent compared to a year ago. From 2001 to 2005, the price of a single-family home in Miami-Dade increased 120 percent to 1,200. This is also similar to what happened in Broward County. The problem is that wages during that time only increased by 17.6% in Miami-Dade, and 15.9% in Broward, according to federal data. This is the other major factor that is contributing to the slowdown - real estate prices far outpaced incomes of potential buyers of these homes.

Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.

By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.

As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to 2,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.

The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.

My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.

4. Real Estate Nationwide

A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.

The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:

* Nevada: -36.1% in sales

* Florida: -30.8% in sales

* Arizona: -26.9% in sales

* California: -21.3% in sales

Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to 9,300, down 2.7% from the 4th quarter of 2005.

Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.

Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.

Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.

The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around 5 billion. Add to this the fact that approximately trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.

The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.

Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1

5. Yield Curve is still inverted!

The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.

History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.

The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.

6. What this means to you

One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.

The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for 10 years and it is most likely time for it to face it's down cycle.

This is the natural cycle of assets:

* Markets go up

* Greed and insanity take over

* An excess forms (i.e. overbuilding)

* A downturn corrects the excesses in the market

This natural cycle is the same principle in "the big picture" as crash dieting is in "the little picture". We starve ourselves to lose 15 pounds, which shuts down our body for the short term, only for it to crank up higher when we go back to "normal" eating patterns.

And speaking of diets, I heard from an old high school buddy who has lost weight on a "cookie" diet where he eats one high protein dinner a day and only 6 low fat cookies throughout the day whenever he is hungry. While he has lost weight on this 800 calorie a day diet, I can't see how it is healthy to starve yourself like that. He told me that whenever he breaks his diet and eats any sodium, he immediately gains one and a half pounds. Talk about your body out of whack! I still recommend exercise (www.mattfurey.com) combined with a low white-carb diet (no white bread, white pastas, and limited sugars). It works for me.

Set your portfolio up correctly now by reading the eBook at http://www.myrealestatebubble.com.

***Disclaimer: This information and the corresponding websites do not constitute professional services, including, but not limited to investment advice. Please consult a finance and/or investment professional for services and advice.

What's Happening In Real Estate Right Now And Where Is It Going?

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