The Real Estate Sage at The Real Estate Investment Institute - REII

We some times think we know so much  more than those that went before us. We're often wrong! The only thing unique is extremes of the mistakes we continue to make. Think about the following in reference to today's problems.

"The ladder of success is best climbed by stepping on the rungs of opportunity."  --Ayn Rand

Success isn't going to fall on you, you're going to have to climb your way to it. Don't pity yourself if you're at the bottom or in the middle of the ladder pity those at the top that have no place to go. Climbing is a way of life!

"One secret of success in life is for a man to be ready for his opportunity when it comes." --Benjamin Disraeli

You! Yes, you yourself have to prepare for the success you seek, be it emotionally, educationally, physically , or fiscally.

"Success consists of going from failure to failure without loss of enthusiasm." --Winston Churchill

We learn the hard way from our mistakes and education lets us learn the easy way from others mistakes, mistakes are inevitable to succeed you must keep going.

"Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things." -Winston Churchill

Critics come in two forms. Those that say it can't be done are irreverent! Those that point out your mistakes and suggest another approach are invaluable! Both are necessary, the former for inspiration, you wouldn't want to end up like them, the latter for education, it often only takes a little hint to show you the way.

" The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." --Thomas Jefferson

It hasn't changed! Today they tax us to buy the votes of those that don't pay taxes, at some point the tax payers are going to figure out it's a lot easer just to sell your vote than to be productive.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered." --Thomas Jefferson

The strange thing is that in 1802 when Jefferson saw this he only saw internal bank corruption, today we also have to deal with external corruption from the regulators and Congress. Banking is not evil, it's the catalyst of economic success. It's corruption that's evil!

Bill

William J Archambault Jr

The Real Estate Investment Institute

Have you ever considered what tenants miss?

Have you ever considered how important a home of your own is?

I'm talking about a home like an old fashion marriage, not serial monogamy as practice by so many. A home like Mom, not Dad's third wife. A home like our Grandparents kept or maybe your Great Grandparents.

The real estate market was a lot better and considerably more expensive when I first wrote those words. Today more than at any time in our history people question the logic of home ownership rather than the how!

My late Brother, Jack wrote about a home,

Grandmas' House

There was a time in our lives

As you well know,

When there was a special place

Called Grandma's House.

On a quite street

Lined with proud old trees,

Was an aged two-story house

That meant so much to me,

Called Grandma's House

It was filled with love

That grandparents and grandchildern share.

And it was felt by all

Who entered there,

You knew it was a grandma's house.

Grandpa in his favorite chair

Watching "Gunsmoke" on TV,

And Grandma in the kitchen

Wanting to play cards with me,

This was Grandmas House.

Aunts, uncles, and cousins

All gathered for a holiday,

Made Thanksgiving and Christmas

Unique in a way,

Know only to Grandmas House.

First Grandpa then Grandma

Sadly I say -have died,

And no one knows how much

We individually cried,

To loose what was special about Grandma's House

The memories are with me

As I age and I roam,

About the qualities essential

To make a house a home.

Shared by all at Grandma's House.

I'm thankful I knew my Grandma's House. 

9-12-1982 ©Estate of Jack Archambault 2007

 

Bill

William J Archambault Jr

The Real Estate Investment Institute

 

I've avoided getting involved or studying reverse mortgages since they began. They held no interest for me, my students, or my clients. A good idea but an FHA program they rarely get it right. Worse they are not being marketed by those few FHA brokers/bankers I do trust.

Then I read a blog: Reverse Mortgages - Purchase a Home with a Reverse Mortgage - Part 7

If I read this correctly, a senior buyer/s can now biy a home putting 40% down plus closing cost, without qualifying and chose to make no mortgage payments!

If that doesn't raise your eye brows nothing will! Think about it. Snow belt retires finally sell their home and head to Poinciana but their $100,000.00 won't buy a home out right. Instead they buy last years $250,000.00 for $125,000.00 put $50,000.00 down and live for taxes and insurance just like they'd planed.

All I can say is WOW!

Bill

William J Archambault Jr

The Real Estate Investment Institute

President Barack Hussain Obama, President of the United State of America's administration according to an article in the "International Herald Tribune" and on their web site: ttp://www.iht.com/articles/2009/01/25/america/25regulate.php that I found on the Drudge Report, is promising major changes in the way mortgage brokers exist! It says: "they would propose new federal standards for mortgage brokers who issued many unsuitable loans and are largely regulated by state officials." 

It's obvious that they mean "mortgage bankers" but it's highly unlikely that they care, brokers are what they hear in the sound byts so it's the brokers their going to get!

Unfortunately, words do have meanings and the mortgage brokers are going to suffer. For the record brokers don't design the loan programs or approve the borrowers.

Regarding those mortgage bankers, few of them designed loan programs they just facilitated the really big lenders programs.

Even the big securitisers that ultimately designed the programs were just expanding to conform with government mandated social programs.

The mandatary "Community Reinvestment Act" is only a facilitator. If it were totally wrong, how do we explain the over whelming success of over 90% of it's beneficiaries. If as many do you blame this government program, why would you think additional government interferences could actually help the consumer.

If President Barack Hussain Obama his Administration and Party really want to cure the problem consider the truth of the matter.

Prosecute the criminals at the top of the big securitisers that faked records to collect bonuses!

Prosecute the regulators we already have that allowed this!

Prosecute the Congressman that took huge donations to look the other way and grease the skids!

We've already got the necessary laws!

What would make anyone think that any new laws and new bureaucrats would be any better?

Most of the mid-level mortgage banks that failed did so waiting for one or two more basis points. That's bad management, greed, foolishness, but not criminal!

Mortgage brokers are not without sin, there is some fraud. Both state and Federal laws ready out law fraud.

Prosecute fraud, when ever and where ever you find it!

Expos facto laws won't get the perpetrators of current problems.

New laws and bureaucrats only means new scheming and additional payoffs.

If you really want to go after mortgage brokers , go after anyone who sold an "option arm" to financially unsophisticated and/or salaried/hourly workers!

Go after the schools that graduated people with so little education they can't understand, if you don't make your payments you can't keep the collateral!  (Sir in this case the homes are the collateral.)

Mr. President if you'll go after the rest I'd forgive you pardoning yourself.

Sir, only family is more important than a man's home. You've got allot of new but sub-prime Fema trailers why not send one to your brother?

Bill

My Corral Word Perfect 12's dictionary says; "optimism >noun 1 hopefulness and confidence about the future or success of something. 2 Philosophy the doctrine that this world is the best of all possible worlds."

Short and traditional I don't believe it explains the optimism needed in today's real estate market. I believe that in real estate and life there are three distinctly different optimism.

Most common is the "simple optimism" The simple optimist knows life is good and will get better. He sees the good in people to the exclusion of all else. He's a trely nice guy. He'll loyally and blindly follow his leader. He's often known as Casper. He often reminds you of the cowboy sidekick on the shorter horse from old movies. Do you remember Jingles, Pancho, or Tonto?

The "foolish optimism" this pathetic character resembles Harpo Makes. He goes through life honking his horn, smiling, and leaving the thinking to some one else. He votes with the majority. He's always looking for the bigger and better deal. He does nothing, because there will be a better deal tomorrow. He believes big government will fix all evils.

Then there is the "pragmatic optimism." The pragmatic optimist knows things will get better because he'll make them better. He knows God helps them that help themselves! He has allot in common with the "simple optimism" but he rides a taller horse, to see further and work harder. He seeks and finds good people he refuses to associate with the others. He's a very nice guy, but not everyone agrees. His very presents often offends "pessimism" and "foolish optimism" because he embarrasses them. He doesn't worry about what can't be done because he knows there is always more than one way!

Why should you be concerned about the different types of optimism?

Because you're an optimist, you want to succeed you believe you will succeed.

So you have a decision to make! You have to decided wether to lead, follow, or get out of the way!

Bill

William J Archambault Jr

The Real Estate Investment Institute

In the middle ages it was common for rich Christians to purchase "Indulgences" lust, gluttony, sloth, perversion, sin of all sorts could be practiced with license, by first negotiating an "indulgence!"

The poor were not above sin but their salvation depended upon "Penitence" the cost of which was demanded by the church and could be considerably more expensive than the pre-negotiate "Indulgence."

It might help to think of "Indulgences" as license and "Penance" as fines.

When a Cleric wanted to indulge in the pleasures of the flesh, he would purchase "Indulgences" from his own parish. Having been pre-forgiven he could safely practice his own brand of hypocritical perversion without sin or real cost. The Cleric had only to take money from his right pocket and pass it to his left pocket. So much for history.

Now the more things change the more they stay alike.

The latest pop religion is of course "The Greens Reformed" as compared to "The Orthodox Greens." "The Greens Reformed" of course believing in "global warming" as opposed to "The Orthodox Greens" from 30 years ago who's' belief was "global cooling."

The self anointed profit of "The Greens Reformed," like the clerics of old has passions "The Greens Reformed" consider sinful. In his case, big houses, big Cars, SUV's, Private Jets, and Conspicuous Consumption. In order to live without sin while doing all those things he condemns the rest of us for, he has revived the ancient practice of selling "Indulgences" the so called "Carbon Offsets." Not forgetting the igneous and lustful Clerics who purchased their "Indulgences" from their own congregation, he's said to own the company selling the Offsets! Genius, but to be excepted from the man who claims to have invented the internet.

You may never become the Pope of pop religion, but be creative, like the parish priest of old! Pay for your next home or your buyers next purchase, invest in real estate, homes with room to plant trees and shrubs! A tree is a tree after all and even landscaping shrubs (just short squat trees) offset as much carbon as those on his lordships tree farms. Wind mills in the rural west offset as much carbon generating electricity as those in great wind farms that feed power nets.

Be creative! Recapture your cost! Set up an LLC and sell the rights to the carbon offsets produced by your landscaping and power generation for yourself and your clients properties!

Bill

William J Archambault Jr

The Real Estate Investment Institute

When dealing with customers and clients even those among us that deny, denounce, and evade fiduciary owe the client their fidelity! In a recent post by a friend, one of his commentors made a snide remark suggesting that another friend and my advice was part of the problem, not the solution to today's finical crises. The commentor didn't like the pragmatic advice we were offering, preferring a fanatic idealistic approach that probably all the readers including my friends and I would agree is the ideal, just impractical.

Fanatic idealism is great Saturday evenings or Sunday Mornings, but pragmatic fidelity serves our clients better! It's bad advice to promote ideals and solutions that are not available or likely to work for the client. It's just plain immoral to jeopardize a client's security and future to promote your view of the world, or more to the point your Grand Parents or Great Grand Parents reality. Times have changed, your advice, good advice has to be up to date.

This is not an isolated problem, every real estate salesman and loan originator has to over come the urge to ask a client if they would really live in this dump, every investment salesman has to refrain from asking if the client would settle for such a low return!

If you're going to serve your client it is necessary to offer practical doable solutions to their problems. We'd all love the ideal, but it's better to do what makes your client's life better today than wait.

Professionals should emulate Marines not Evangelist!

Semper Fi

Bill

William J Archambault Jr

The Real Estate Investment Institute

With all the bank failures, mergers, sales, and take overs we could relax as our Deposits, CD's, and Retirement accounts were insured by FDIC. But, now that they have been merged, swallowed, and assimilated it's time to make sure you're still insured.

My own accounts opened with WaMu are now part of "J P Morgan Chase" are still insured (hopefully), but that could change on at varied times depending on when they were opened.

Have you checked with your bank? Your bank doesn't need to be taken over for you to exceed insurance limits, your bank could have quietly acquired another bank or it's accounts that you have money in.

As long as I've got your thinking about your retirement accounts, are you directing yourself directed IRA's?

Bill

William J Archambault Jr

The Real Estate Investment Institute

We have No-Fault Divorce, where you stand before a judge and say "I don't!" and you're instantly relived of your sacred promise of "until death do we part." No-Fault Divorce means that no one has to take responsibility.

We have No-Fault Insurance, where your insurance company pays for what the other guy did, and all our rates go up. But, the guilty don't have to take responsibility.

Should we have No-Fault Default? Should the debtor have no responsibility and no consequences for defaulting on loans? Who should be responsible for the losses?

I keep reading second hand anecdotes about the friend or client of a friend's friend and how they were abused by the bank. Refused a short sale or denied one until they had defaulted and late payments show on their credit report! Aren't they entitled to a No-Fault Default? Why should the consumer who stops making his payments be held responsible?

Is responsibility an out-dated concept?

Is personal and societal honor a thing of the past?

Are we to replace "The Golden Rule" with Marks' "From each according to his ability, to each according to his need?"

Are we to believe that it's the Banks money not their depositors and stockholders?

Are we to forget that depositors and stockholders are real people just like us?

Are we to make the stupid and foolish the next two minority classes to be protected?

If in deed, we believe the stupid and foolish are a protectable class, are they not then the majority?

Are we to forget the more than 9 out of 10 people who perhaps foolish honor and pay their mortgages?

Groucho Marx once said: " I wouldn't want to belong to any club that would have me as a member". Today I believe he'd have said: "I wouldn't want to invest with any company that would lend money to me!"

Bill

William J Archambault Jr

Could there be a conspiracy?

To control the population:

Control their education.

Control the children.

Control the print media.

Convince them they are suffering.

Give them a villain.

Blame the villain for their own folly.

Make laws so everyone is guilty.

Take away their savings.

Control their retirement.

End social assimilation.

Dilute their base.

Control their health. Sound familiar?

Take away their guns. Sound familiar?

Take away the mobility. Sound familiar?

Take away their homes. Sound familiar?

End their freedom!

Bill

William J Archambault Jr

We in the United States of America develop our system of laws and commerce based on traditional English Common Law. We tempered it with a sense of personal independence never before know or practiced by man, with the possible exception of some American aboriginal tribes. Contract and property laws vary little from the beginning. The earliest reference to "Mortgages*" as we know them occluded in 1190 more than 800 years ago.

Many people mistakenly refer to a "mortgage" when the mean a "note" or other instrument creating and signifying a debt. A mortgage is a security agreement or lien and in deed the terms maybe synonymous, colloquially mortgage means a lien pledging real estate to secure a loan.

Through out common law history liens have survived any and all financial problems and legal actions of the debtor. Liens and mortgages have been protected above unsecured creditors to insure the continued supply of loan funds to the rest of the population!

The sanctity of our laws, the sanctity of our contracts, the sanctity of our liens and mortgages securing those contracts has made America the worlds best investment. Yes, we have a bankruptcy system and debtors can discharge unsecured debts, but secured debts have left the lender with the security, which may be claimed or renegotiate with the debtor in the lender's best interest. The scurried lender may take a loss, but his interest in the mortgage never changed, the lender faces only the original risk, they either get their money back or get the security. Every major source of great funds in the world is invested in the United States because no where else offers the security we have always honored!

Pandering to the emotional overwhelmed, financially and historically ignorant, short thinking, but well intentioned masses there are those in Congress who would defile the sanctity of the secured note! This is nothing short of financial debauchery, allowing a judge to defile a mortgage or any other secured lien. Such behavior is tantamount to third world and communist countries nationalizing private property.

The leaders of this moral depravity: in The House, Representative Brad Miller: in The Senate, Senator Richard Durbin.

They refer to it as "Cramdowns" craming it down the lender's troat! Never in our history have we let a judge unilaterally restructure an other wise legal security instrument.

This bill may help some home owners who are truly in dire straights, but at what cost? It will do nothing to help those already affected. It will severally raise  the cost and limit the amount of mortgage money available in the future!

America may be the world's first choice to invest in, but we're not the only choice. We need the world's money! We the Country, the People need to continue to honor our laws, individual may have problems, but that was understood. If we dishonor our contracts even our own investors will send their money else where.

Bill

William J Archambault Jr

The Real Estate Investment Institute

 

* Wealth Building Through Mortgage Planning

http://www.mortgage-wealth.com/history