Hi guys! I was trolling on the internet the other day and came across this article that I found would be of interest you readers. It is called, “How Do I Negotiate in Real Estate.” Now, I do not agree with everything in the article but I do think that it is a good read for anyone who is thinking about any major purchases in the near future.

The article hit upon topics like, Should I Rely on the Agent? It warns that a Realtor, though charged with a fiduciary duty, may not always be on your side. his may be true. Remember, the agent gets nothing if the deal doesn’t close. The seller will always want more and the buyer will always want to pay less. So, think about this next time you work with an agent.

Another section I found interesting was, Are You Your Own Worst Enemy? Many people are so scared of getting ripped off that they will be so intent on not acting like a fool, they do not notice the most obvious pitfalls. Others do not want to seem incompetant and will act like such a know-it-all that it puts sellers and seller agents off.

Further down the article, you will find discussions on how to negotiate successfully, how much to offer, and whether or not to lowball. All in all, not a bad way to spend ten minutes on reading. You are, after all, improving yourself.

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Hi guys! I am sure you have all heard by now that Uncle Sam has issued check after to check to keep Wall Street bankers afloat. And you, as American taxpayers, who were picking up the tab, are growing increasingly resentful of paying for others’ mistakes.

And I am sure when President Barack Obama announced a $75 billion plan to lower monthly mortgage payments for up to four million distressed homeowners in mid-February, your frustration turned into rage. But the Obama administration has pitched its housing fix as one that would help all homeowners, not just troubled ones. So after fresh details of the plan were released last Wednesday, I am sure you are asking: “I’m a responsible homeowner; what’s in it for me?”

Do you qualify for Obama’s housing plan? Well, the $75 billion goes toward reducing mortgage payments for “at-risk” homeowners. The program is only available for owner-occupied, principal residences with mortgages that originated before January 1, 2009. To qualify, the borrower’s monthly mortgage payments must exceed 31 percent of their gross monthly income. In addition, they must also have undergone some type of financial hardship (such as a loss of income) that puts them at risk of default. While you don’t need to be delinquent on your mortgage to qualify, borrowers who are comfortably making their mortgage payments won’t be eligible.

So if you don’t qualify, how does it help you? Many Americans who purchased homes they could reasonably afford and made their payments on time are understandably upset at seeing neighbors who made reckless decisions bailed out on their dime. But the Obama administration argues that keeping people in their homes is in the best interest of all homeowners, since foreclosures (which can blight communities and nurture crime) will drive down property values for everyone. “One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent,” the president recently said.

Remember, if I was to sell your house, the first thing I’m going to do is to figure out a listing price. Of course I will look at comparable homes in your neighborhood. And if you’ve got all these depressed property values, that is going to definitely harm the sales value of your home. As such, if Obama’s housing plan succeeds in reducing foreclosures for troubled borrowers, it may help to bolster the values of other homes as well.

So, what incentive do you have to keep paying your mortgage? A home foreclosure is an ugly stain on a credit report, and it can remain there for as long as seven years. To be honest, you mind as well declare bankruptcy. With banks tightening their lending standards in the face of higher delinquencies, it’s a particularly bad time to ruin your credit. If you have a home foreclosure on your credit report, you’re likely to have a difficult time getting any type of new credit these days: from a credit card to a new mortgage.

But what if you are not in trouble now, how can you protect yourself from the threat of foreclosure? Factors that can lead to foreclosure include unemployment, exploding-rate mortgages, and reckless spending. Although homeowners may have less control over their employment situation, by addressing these other factors, they can put themselves in a better position to avoid foreclosure should they suffer job loss.

I believe that as homeowners, you should make sure that you have sufficient savings set aside to pay your mortgage in the event of the unexpected. Fallback savings is critical. At least have three months of your mortgage payments saved. And of course, make sure that savings is making you money by putting it in a high yield savings account (or something comparable). In setting aside such savings, families should institute a household budget and review their online bank statements regularly to ensure they aren’t spending wastefully.

For those of you with adjustable-rate mortgages, see if you are eligible to refinance into a fixed-rate home loan, while those of you who already have fixed-rate loans should see if you can refinance into a lower rate. In doing so, consumers should first obtain their credit report and see if their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. Those with Fannie or Freddie loans may be eligible to refinance into a lower rate through a second component of Obama’s housing plan.

Is there a silver lining in this mess? It’s nearly impossible to spot any sort of silver lining in the current housing mess. But if there’s anything good to come out of this, it’s the hope that homeowners, lenders, regulators, and policymakers will learn from their mistakes and ensure that mortgages going forward will be properly underwritten and affordable. By overlooking the lessons of the crisis, we risk going through this devastating cycle again in the future.

Okay guys, see you in seven.

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Most of us flush the toilet, or wash the dishes and laundry, and never think about where the water goes after it leaves our sight. Am I right? Well, why should we care anyways? Here is why we should all care:

All the pipes in your wastewater from toilets, sinks, dishwashers and washing machines come together into a single pipe, called a lateral, that runs from your house to a larger pipe, called a sewer main, under the street.

Most homes have a cleanout, a pipe that connects your sewer line to the surface of the ground, that helps prevent overflows inside homes.

The lateral is divided into two segments. The upper private segment extends from the house to the cleanout at the curb, also called a District cleanout, and the lower public segment extends from there to the sewer main.

As a homeowner, you are responsible for maintaining the upper lateral. Depending where you are in the country, your local sanitation department maintains the lower laterals. If there is no district cleanout, the homeowner is responsible for the lateral from the home to the sewer main.

In many areas, homes still have their original sewer lateral connection. The pipes are old, often made of clay with cement mortar joints. Over time, some have cracked or have separated joints, and sometimes the pipes have shifted out of place. These defects allow tree roots to grow into the pipes, which cause blockages.

Other causes of blockages include cooking oil and grease, the wrong things being put down the drain, and more. When pipes re blocked, overflows occur.

If you have a cleanout on your property, and a blockage occurs in your lateral, the overflow will occur outside your home. This may cause damage to your yard, your neighbor’s property, and, if the overflow reaches the storm drain, may harm the Bay.

If you don’t have a cleanout and a blockage occurs, wastewater will back up into your house causing potential health and property problems.

If you have an overflow or stoppage, call your district’s sanitation department first. They will evaluate the problem. If it is District related, they will fix it. If the problem is in the upper lateral, you will probably be advised to call a plumber.

Two Important Notes:

If you do not address the problem, there are risks involved/ You may be subject to fines for allowing wastewater to harm the environment through the storm drain, or you may be open to litigation from your neighbors for property damage.

Fortunately, there’s a good solution. Your local District may have what is called an Upper Lateral Program that can reimburse part of the cost of upper lateral replacement or cleanout installation. You must apply for reimbursement before you do the work-you can not bring in your receipts to the District afterwards for reimbursement.

Remember, keeping your upper lateral in good shape is better for the environment, and may save you thousands of dollars.

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Happy New Year dear readers! I was schmoozing with a few fellow party attendees on the 1st, when I realized that many people still don’t truly understand what “Agency” means. It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in transactions. Ask your salesperson to explain what type of agency relationship you have with him or her and with the brokerage company next time you buy or sell.

1. Let’s begin with the Seller’s representative (also known as a listing agent or seller’s agent). A seller’s agent is hired by and represents the seller of the property. All fiduciary duties are owed to the seller. Now, I know what you are wondering: What the heck is fiduciary duty? It means that your agent owes you the duty of utmost good faith and must not put him or herself in a position where his or her personal interests and his or her duties may conflict. The agency relationship is usually created by a listing contract.

2. A Buyer’s representative (also known as a buyer’s agent) is a real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer’s representative works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer’s representative may be paid by the seller or by a commission split with the listing broker.

3. A Subagent owes the same fiduciary duties to the agent’s principal as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not representing the buyer as a buyer’s representative or operating in a nonagency relationship, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

The reason I bring up the subagent is due to the fact that there was a lot of referral fees being asked for and paid a couple of years ago during our real estate boom.

4. Disclosed dual agent. Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it’s vital that all parties give their informed consent. In many states, this consent must be in writing. My advice is always put it in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them is legal in most states.

5. Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. However, the broker still has the responsibility of supervising both groups of licensees.

6. Nonagency relationship (sometimes called a transaction broker or facilitator). Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

My personal advice? If you are a seller? Insist on agents from two different firms represent you and the buyer. Both would be focused on their respective clients, and therefore no conflicts of interests will arise. Don’t penny pinch and try to save on your fees by hiring one agent to do both jobs. If you are the buyer, i would suggest you find your own agent as well. What do you care? You, as the buyer, are not paying the commission anyways!

See you next time guys!

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With the way the U.S. economy was looking in the past few months, I started looking for investment opportunities in other countries. Why not look to our southern brothers, I thought?

Before I continue with my story, here’s a quick side track. But it’s related, I promise. Have you guys noticed the sudden popularity of television shows about food? I mean between Rachel Ray, Alton Brown, and Bobby Flay, we’ve pretty much ushered in a new era of Food Network shows.

Anyways, I thought, wow, wouldn’t it be cool to supply fish, shrimp and other seafood to these wonderful chefs? I mean, everyone’s got to eat, and the idea of fine dining is the new popular thing to experience.

So, I placed some calls and ended up in Mexico, along the Sea of Cortez, checking out and meeting big seafood suppliers. Now, you must be thinking, “That’s it? So easy!”

Ha! Nothing could be further from the truth. There are tons of things to worry about: how to keep the seafood fresh while in transport, the actual transport, and getting FDA approval, just to name a few.

Anyways, enjoy the following video I made while down south. I wanted to check out the “crop” so to speak and they had a guy throw some feed in the water to attract the shrimp. Then down went the net and captured some.

Now, keep in mind that at the time of the video, it was still two months before shrimp season, so they were all really small.

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