Hi guys, welcome back to another session of how to get rich and stay rich. Today I want to focus on how to develop leadership qualities. Because, let’s face it, the captain gets the largest share of the booty. Always.

In these economic times, making money all by your lonesome is very difficult. We just don’t have enough resources individually. The trend has been to pool resources together for businesses and splitting the profits. You invest less, and do less, but still see returns. The trick is to have a great leader.

Whether you are choosing a leader, or want to be one yourself, there are a few traits that a good leader must always possess or develop. A good leader must be able to remove roadblocks. If there is a problem, you better be able to solve it, or at least motivate the team to come up with a solution.

A good leader must be able to facilitate open, and honest communication. Never sugar coat things, or lie. It will always come back and bite you in the ass. Always.

Do as I do. Never do as I say. A good leader must always model behavior that he or she wants from the team. On the same vein, act instead of react. A good leader can facilitate decision making and discussions. He or she must be able to see the big picture and communicate each member’s role in that context. Don’t make it personal.

A good leader must be able to recognize the strengths of each team member and focus those strengths to the benefit of the team. Remember, everyone is good at something. The trick is to encourage independent thinking and trust each team member to make good decisions. And when assembling your team, a leader must be able to gather team members with complementary skill sets and draw from the strengths of each member.

Hope this helps some of you guys. Now go assemble your dream team and tackle that 200 unit condominium conversion! See you in seven (or less!).

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Hey, what’s going on guys? In yesterday’s post, I showed you how to attract new customers to your business using web directories. Well, usually there is a space for your company website on most those directory forms. Who doesn’t have a website these days? If not, get one now!

So, the problem with most websites is that the information on them gets outdated quickly. When that happens, the search engines stop picking it up and no one ends up going there. Then, no new customers for your business.

My suggestion? Run a regular blog on your website along with the other pertinent information you’ve got on there. Post up news in your industry, your thoughts on the news, and maybe your solutions to current problems. This will attract new customers as well as keeping your existing ones. Better yet, get paid to do this!

Enter blog advertising. Not only do you improve your writing, but you also get paid for it. That’s like getting a grant to go to school!

In fact, blog advertising is much more effective than traditional methods. Let me ask you, what do you do during a commercial creak when you watch television? You get up and go to the bathroom, get a snack, and anything that isn’t watching the commercials!

Now, what do you do when you visit a website and a pop up come sup? You get annoyed and close it as soon as possible right? And some company has paid top dollar for those ad spaces. With blog advertising, people who are actually interested in your business is already reading your blog! Advertisers would kill for these type of advertisements! But, not only do you not have to pay for it, YOU are getting paid!

Sounds great right? Now get to it! There are plenty of great blogging for money type sites out there. Pick a few within your industry and either bid on the right to get paid for a particular article or wait for someone to buy a post from you.

Alright, see you in seven (though it seems like everyday now, doesn’t it?). Get rich and stay rich guys!

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Hey guys! Here are some tips on real estate investing that I couldn’t wait seven days to let you know about.

As many of you real estate moguls have already been experiencing, buying and selling real estate has not been as easy as it once was. “Flipping” has taken another meaning altogether. Instead of buying low, fixing up, and “flipping” a house for profit, investors are now “flipping” their lids or “flipping” out, at the mortgage payments, property tax, and defaulting renters.

My suggestion? Think smaller. Houses are not selling? Try manufactured homes. I’ll wait till you finish laughing. No, go ahead. You’ll want to pay attention.

If you can find a piece of land that is within a mile, or relatively close to, the mobile home, then you can make even more profit. But the trick is to obtain a nice three bedroom two bath mobile home at an auction or foreclosure sale, and plant it on another vacant land investment property you have. While prices may vary by location, but a budget of $150,000 is quite sufficient. Clever planning on amenities such as electricity, gas, water and sewer connections can see even more savings.

This process should take no more than three months. This will include the permit process, purchasing the land and mobile home, and various home upgrades to make it presentable. Upon completion, an asking price of $185,000 to $200,000 should be considered affordable almost anywhere in the States. $35,000 to $50,000 profit for three months of work? Not too shabby in this economy, right?

But, for argument’s sake, let’s say you can’t sell it, so you rent it out. Now, you have to deal with tenants that potentially may default on their rent. Enter my next tip.

Here is how you can make sure you get your rent on time each month. Put into the rental contract that monthly rent is to be automatically deducted from the renter’s savings or checking account. Or, even better, if your tenant works for a company that will allow it, set them up on payroll deduction/direct deposit for their monthly rent.

Now, you can immediately know if there will be a problem before the two weeks the bank takes to let you know that a check has bounced. Therefore, you can minimize your potential damages by starting the eviction process earlier.

Sure, some renters will freak at this. Well, then there’s a problem, and you shouldn’t be renting to them. But okay, beggars can’t be choosers in this economy right? Some milder things you can do is to send them deposit slips and prepaid envelopes.

Well, I hope you were able to take something away with you guys today. See you in seven (or less!). Get Rich, and stay rich, people!

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Hi guys! Today I will be sharing how I utilize web directories to get richer. For those of you new to the Internet era, a web directory is a directory on the World Wide Web that specializes in linking to other web sites and categorizing those links.

To explain further, a web directory is not a search engine, and does not display lists of web pages based on keywords; instead, it lists web sites by category and subcategory. The categorization is usually based on the whole web site rather than one page or a set of keywords, and sites are often limited to inclusion in only a few categories. Web directories often allow site owners to directly submit their site for inclusion, and have editors review submissions for fitness.

And there, folks, is the key. It doesn’t matter what field you do business in. All businesses require customers, whether returning or new. To retain your old customers and make sure that they are repeat ones, well, that I would have to leave to you. You had better do a damn good job. If not, then you should really be looking at doing something else. Anyhow, any and all businesses would love to attract new customers. The simplest way to do that? Well, get your name out there, of course! Able to include your contact information? Even better!

Now, most web directories are very general in scope and list websites across a wide range of categories, regions and languages. But there are also some niche directories which focus on restricted regions, single languages, or specialist sectors. And these are the ones you want to look at and submit your website or contact information to.

Examples of well known, general, web directories include the Yahoo! Directory, Business dot Com, and the Open Directory Project (ODP). ODP is significant due to its extensive categorization and large number of listings and its free availability for use by other directories and search engines.

One of the best ways I have used a business web directory is to simply just submit my business name, website, and contact information. For example, as a Realtor, I constantly have new listings that I purchase a URL solely dedicated to the property address. This drives traffic directly to the listing site, and the more people look, the more chances I have of making a sale.

So, what are you waiting for? People are not going to just find out about you just by accident! Get your information out there! Find a web directory specializing in your field, and post up!

Alright guys, see you in seven (or less!) for more tips on how to get rich and stay rich.

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Copyright (c) 2010 Scott Bywater
Copywriting That SELLS
http://www.copywritingthatsells.com.au/

The internet is very sexy at the moment.

——————————————————————
Scott Bywater is a direct mail copywriter and the author of
Cash-Flow Advertising. To get access to his highly prized
complimentary copy of ‘7 Ways To Get More Customers” (valued at
$29.95) and to join his controversial and insighful “Copywriting
Selling Secrets” newsletter where you’ll uncover the truth about
why most ads and sales letters don’t work (and how to make yours
stand out from the rest) head on over to his web site at
http://www.copywritingthatsells.com.au/

See you guys in seven!

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Hi guys! Here is an interesting article I found written by Jesse Self. I found that this was applicable to me since I am a Realtor, but I believe it can be utilized by many of you out there in different fields.

Copyright (c) 2010 Jesse Self
Marketing With Jesse
http://www.marketingwithjesse.com/

Educate them about what, you may be thinking. Well, consider this, many businesses focus solely on attracting new customers, but you NEED to spend a good chunk of your time retaining current and former customers. These are people you already know to be a good sales potential… they’ve already bought from you!

——————————————————————
If you haven’t already taken us up on it, Jesse Self is offering, for a limited time only, a F.R.E.E test drive at http://www.marketingwithjesse.com/ – the site is your one stop shop, all under-one-roof, source of genuinely tested, proven-yet -original, ground-breaking, even radical “insider” roadmaps for turning ordinary businesses into extra-ordinary businesses. We offer 30 hours of high-end video and audio, plus countless resources at: http://www.marketingwithjesse.com/

See you guys in seven! Now go out there and get rich!

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Hi guys. I know many of you have been feeling the pressure in our downward facing economy. Business is slow to almost non existent, and new ventures just don’t seem to be working. It feels like you are working twice as hard to get less returns lately.

Never fear, I found an article written by Scott Bywater that may give you a little pick-me-up. Yes, it is tennis related, beacuse, yes, I was a tennis player. And yes, Mr. Bywater does try to push some service, but pay attention to his lesson. Enjoy!

Copyright (c) 2010 Scott Bywater
Copywriting That SELLS
http://www.copywritingthatsells.com.au/

Yesterday, I just lounged around… hanging out with my little boy most of the day. Having breakfast, playing with leggo, pulling “The Bear With the Big Blue House” out of the cupboard and watching that.

——————————————————————
Scott Bywater is an advertising copywriting expert and the author of Cash-Flow Advertising. To gain access to all of his copywriting tips on how to get more customers via his eye opening “Copywriting Selling Secrets” newsletter, simply head on over to his web site at http://www.copywritingthatsells.com.au/

See you guys in seven!

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Hi guys. It’s that time of year for me again. It’s time for all of us, actually, to check our credit reports. In a dumpy economy, our credit scores are more important than ever. Remember, I always get a free credit report every four months. A free one is allowed every year by the top three credit bureaus, so if you plan it right, you can get one free every four months.

Here are things to focus on this quarter. Keep your average credit limit for your major credit cards, such as Discover, American Express, VISA, or MasterCard, high. This tells lenders that you have enough financial experience, and they will be more likely to see you as a good credit risk. The trend for banks nowadays is to continue to cut your available credit whenever possible. Don’t allow this. Call and argue your way to the top. More often then not, they will keep you at your current limit to keep you as a customer.

Contrary to what many say, you have to have at least two or more open major credit cards, such as Discover, American Express, VISA, or MasterCard, on your credit report. This shows lenders that you are a responsible borrower and they may be more likely to see you as a good credit risk and extend you credit. But keep in mind, that these better be in good standing.

Most importantly these days, make sure your credit file shows no record of any current delinquencies on real estate accounts, such as a mortgage. Having real estate accounts in good standing is viewed positively by lenders.

In addition, make sure your credit report does not contain negative public records, such as a bankruptcy, lien, lawsuit or judgment filed within the last two years. This will have a positive impact on your credit score. Public record items may remain on your credit report for 7 to 15 years, depending on the item.

If you have any questions after reviewing your credit report this quarter, feel free to drop me a comment. I am, by no means, and attorney or qualified to give legal advice, but I am always open to giving my opinion.

Stay tuned and see you in seven! Happy savings!

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Hey guys! Back in seven as promised! In today’s tight economy, who doesn’t want to free up some cash? Trim the fat but not the fun from your budget.

Here’s how to slash your grocery bill.

Only shop once a week. The more trips you make to the store, the more likely you are to buy on impulse when you see tempting items. About two-thirds of purchases are unplanned; cut that in half to save around $143 a month (if you spend $100 a week on groceries).

Give up the bottle. Stop drinking bottled water and instead buy a filter for your faucet (about $34, plus $25 for replacements). If your family consumes 12 gallons a month, you’ll save about $15. Not too shabby right?

Eat what’s ripe. Out-of-season produce costs 20% to 50% more than it does when it’s in season. Estimated savings: $7 a month.

Ditch your second (or third) car (Eeks! That’s my department…)

Sure, she turns heads, but that 2009 Aston Martin DBS is an expensive mistress. An oil change can put you in the hospital. If something goes wrong, it can downright kill you! Can’t do without two cars? Trade one in for a new (shudder)Camry and save close to $221 a month.

Visit your local cobbler

Last year’s Cole Haans are so … in this year. Rather than shell out $150 or more each season to buy a new pair of good shoes, clean up last year’s kicks. Your local shoe-repair shop will charge about $10 to fix worn-out heel tips for women. Men can get another year or more out of their dress shoes by replacing the rubber heel and the sole. Cost: about $50. If the lady of the house buys four pairs of shoes a year, and the man buys one (at $150 each), you’d save more than $50 a month.

Twitter to Save
Get timely if terse tips about bargains by following these twitterers. Not up on the technology? Get a tutorial at twitter.com.

Music: @amazonmp3
Travel: @JetBlueCheeps
Fashion/beauty: @DealDivine
General retail: @DealsPlus
Giveaways: @fstimes

Time your buys

Don’t get gouged, buy that air conditioner in January, not July, and get it for nearly half the price. You can save 25% to 40% or more if you know when to buy these goods.

Stretch it out

Look like a million bucks without spending a million by slowing down your personal care regimen. Sounds gross? Please, in this economy, read ahead. Trust me.

Go easy on the dry cleaning. Cut the number of trips you make in half: 65% of clothes that are dry cleaned can be washed by hand or machine. For example, you can put linens in the washer and do most sweaters in cold water by hand (including cashmere and camel hair). Most silks are hand washable too. Exception: bold colors like brick red, deep brown, and navy should still be dry-cleaned.

Do home touch-ups. Add at least two weeks to the time between hair coloring appointments ($100 or so a pop) by using over-the-counter products (about $10) from the drugstore to cover up your roots. Or, damn it, quit coloring your hair! What’s wrong with a little salt and pepper? It’s distinguished.

Get to work cheaper

A suburban driver commuting to the city might shell out $575 a month for gas, parking, and car upkeep, assuming a 30-mile round-trip. These downshifts can help:

Grab a tax break. Sign up for your company’s transportation reimbursement account, which lets you pay up to $230 in monthly parking fees with pretax dollars. (You can set aside the same amount for mass-transit costs.) Savings: about $80 a month.

Drive with a buddy. Carpool to work with a colleague. Soak in some office gossip. Or not.

Go from four wheels to two. Buy a good commuter bicycle ($500) and cycle to work as the weather permits. Try Craigslist for great second hand bikes for even more savings! Do that six months a year and you’ll save $250 a month.

Stepping off the gas

You don’t have to buy a Prius (thank god), trade in your clunker or ride the bus to cut down on the money you spend for gas each month. Just make a few adjustments to your driving habits:

Drive sensibly. Aggressive driving on the highway, speeding, rapid acceleration and braking, can lower your mileage by 33%. Hear that, Speedracer?

Observe the speed limit. Gas mileage decreases rapidly above 60 miles per hour. Reining in your speed will save you up to 23%.

Keep tires inflated properly. Check your owner’s manual to list your vehicle’s proper tire pressure, buy a good dial-type pressure gauge ($8), and check your tires once a week. Keeping them properly inflated can improve your mileage by about 3%.

Empty the trunk. Don’t carry around unnecessary items, especially in small cars. An extra 100 pounds in your vehicle could reduce your miles-per-gallon by up to 2%.

Buy ink not cartridges

Instead of buying new black and color ink cartridges when your computer printer runs low, just get them refilled at your local drug store or shopping mall. After all, you don’t buy a new car every time you get low on gas, do you? I wish!

Be loyal to your brands selectively

Save your brand loyalty for where it counts, a Chanel bag or a Brooks Brothers jacket. After all, when you’re battling Rafael Nadal in Grand Slam Tennis on your Wii, who cares what batteries are powering your remote? If there’s no innovation happening with the product, the private label can be just as good, or better.

We estimate you can save up to $15 a month by going with the store-brand or little-known brand for batteries and these other products: pain relievers, canned fruits & vegetables, pantry staples and basic beauty products.

Work out for less

Sweat on your high-end health club’s StairMaster, and unwind at the martini bar.

Better: $50-$90. Work out at the YMCA. There are nearly 3,000 locations throughout the nation.

Best: $0. Free online boot camp whips you into shape at www.marinecorpsfitness.com.

College expenses

Tuition is the largest single bill you’ll pay for Junior to get a degree from Bleed You Dry U. But other costs add up fast. Slash these three:

Books: Nix Brief Principles of Macroeconomics from the college bookstore ($146); rent it from Chegg.com or CampusBookRentals.com, which carries the intro econ text for $68 a semester.

Meals: Go for a seven- or 14- meal plan, not a full one. Your kid will be up late partying, er, studying, and skipping breakfast a few days a week. And no one eats in the cafeteria on Saturday night.

Travel: For trips home, buy a Student Advantage discount card ($20) to save 15% on train and bus fares, 10% off selected flights.

Hope this helped! See you in seven!

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Hey guys, sorry it’s been a while since I updated. It seems that the sagging global economy has even affected the best of us. If we’re not scrambling to make ends meet these days, we are pissed at some random person for some random act, that we would never have given a second thought in a better economy. The downward spiral is getting out of control, and it has even affected our physical health. We need to take back control people. And the first step is identifying the problems. So, what every day activities may be threatening your financial health? Here are seven:

1. Using a debit card without writing down the transactions in your account register.

Debit cards are expected to account for 60 percent of transactions this year, but debit-card users tend to lose track of their money: Swiping plastic triggers 44 percent of overdraft fees, while paper checks account for just 27 percent.

Why write down debit spending? Because swiping a card doesn’t feel the same as laying out cash. The discipline of recording the transaction may reduce mindless spending and makes money easier to track. Simplify your money trail by using online bill pay for all your regular monthly bills, rather than having money withdrawn from your account by outside companies. Then take 30 seconds a day to log on to your account, add the pending transactions in bill pay to the outstanding checks and debits listed in your register that haven’t cleared yet. Subtract from the current balance. If the result is nearing zero, add money to the account. Voila! No overdrafts, no fees.

Sounds simple, but it’s more difficult than you think. Start small. Baby steps. Once you see what a dramatic difference it makes, you’ll want to apply this sort of order to every aspect of your life.

2. Tossing out the “junk mail” from your credit card company.

The Credit Card Holders Bill of Rights Act goes into full effect in February. Ahead of that deadline, companies are changing the terms of customer agreements. For example, the new law prohibits raising the interest rate on existing balances unless a customer pays more than 60 days late. To skirt that provision, firms are notifying customers that their cards are now “variable rate.” (Translation: We can jack up your rate whenever we please.)

So watch those benign notices, and be ready to call and demand a fixed-rate card or take your business elsewhere. Amid these tactics, a new bill calls for moving up the deadline on the credit card law to December 1st.

I just got one from Bank of America. The basic “rock and a hard place” ultimatum they gave me was, cancel my card and stay with the 9.9% APR until pay off, or keep my $10,000.00 limit and get raped (excuse my French) for 29.99% every month. My solution? After I gave them the finger, I transferred the amount to another card. Always keep a few open folks.

3. Ignoring new bank charges.

You may have noticed banks are a bit desperate these days to make a buck. One of the more recent innovations is dinging customers who make electronic transfers to an external account.

For example, last year, Wachovia started charging customers $3 per transfer to an outside bank. Let’s say you automatically stash $100 a week into a savings account at an online bank offering 1.8 percent interest (the current top rate). Smart move. Except Wachovia will now ding you for 3 percent of that weekly deposit. Annual cost? $156.

Meanwhile, Wachovia doesn’t offer any savings accounts that compete with a 1.8 percent rate. The solution? Find a local bank or credit union with no transfer fees, so you’re free to access higher returns.

4. Investing time in the wrong things.

Maybe you’re someone who will drive 20 minutes to a store on your lunch hour to get $5 off a $20 sweater. Or you’ll spend 45 minutes on the phone protesting a $3 error on the cable bill. It’s just not worth it sometimes. But, it’s still money you argue.

Well, let me tell you what is worth your time. Joining the 401(k) plan at your company. Don’t just leave your contribution languishing in a money-market account.

Make a weekly to-do list of your financial decisions (savings and spending) and then prioritize them in terms of bang-for-the-buck over time. When you do the math, you’ll see why paying off credit cards in full and contributing to a retirement plan that offers a match should be at the top of the list.

5. Spending with no goals to guide you.

One definition of insanity, attributed to Albert Einstein, is doing the same thing over and over again and expecting different results. Yet that’s how some people approach their finances. They earn and spend and earn and spend, and wonder why they aren’t making any progress.

Break the mindless cycle by figuring out what you value most, whether it’s world travel, returning to school to change careers, home ownership, a peaceful retirement or a debt-free college education for the kids. Then set specific goals, with real time frames, and track your advancement on a monthly basis. Make this a daily discipline by putting a list of those goals in your face: the fridge, your desk at work, your wallet.

Remember what I said about those monthly meetings with your significant other? This is what I was talking about. Or, just set up a day each month and sit with yourself to go over these things. It will pay off. I promise.

6. Failing to track spending.

You can’t succeed at No. 5 if you don’t know precisely where your money is going. When I first started working, I carried a pencil and paper around and wrote everything down. Today, there are numerous desktop software applications and Web sites that will aggregate your finances and track your spending and savings. If you own a smart phone try Mint.com.

You can pay upfront for software. Choose an online program that’s free, but supported by sponsored ads and offers you’ll see when you log in (and the service may sell your data). Or you can pay a monthly fee for a site with no outside ads or offers.

7. Failing to exercise.

How can this hurt your finances? Daily physical activity lowers the risk of a multitude of ailments, from heart disease to diabetes to certain kinds of cancer, which are obviously expensive to treat, even for people who have health insurance.

A study has found medical bills are behind 60 percent of U.S. bankruptcies, and more than 75 percent of bankrupt families had health insurance at the onset of the illness.

Meanwhile, a regular work-out might even get you a raise. Studies have found exercise can improve your performance at work by boosting cognitive skills and productivity, and reducing stress and absenteeism. And, the most important factor, you’ll just feel better!

Thanks for staying with me guys. See you in seven (promise!).

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After installation, they claim to save you 4% on your water bill. I was only able to receive one set per household unit, but I’m sure you can keep going back for more. Check it out!

It is best to install these first on your rental properties as tenants are much less likely to help you save water, especially if their utility costs are included in their monthly rent.

See you in seven!

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Hello again folks! Now, I know what most of you are thinking right now, after reading the title to this post: Are you kidding me?!? And with good reason too, I might add.

For those of you not familiar with Oakland, California, please check out their Wikipedia profile here. For the rest, let me first clarify. When I said hot, I never meant it in a positive way.

Anyways, it immediately caught my eye, when Oakland 94606 was named one of the top 10 “hottest” real-estate markets in the country, in Zip Realty’s second-quarter Home Hunter Report.

Zip Realty is an online real-estate company that went public in 2004. It turns out, that the reason they bestowed the “hottest” honor on this particular Oakland area, was based on the number of offers on homes that were higher than their lists prices. The reality is that these days, this is principally happening when bargain-basement foreclosures prompt bidding wars between buyers.

So, is this something to get excited about? Nah, not so much. It just goes to show that the media can put a positive spin on just about anything to raise public moral. The truth? The economy is just as crappy as it was six months ago, and the rich are just getting richer. Oakland residents are unable to pay for their houses, so they are losing them to foreclosure at high rates. Then, the rich scoop them up at bargain prices, and rent them back to the residents!

Nice scam, eh? That’s business! Keep it here folks. Be back in seven.

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It is difficult to say when we considered umbrellas disposable. Perhaps it was long after some schmuck created the collapsible version. And in reducing it to a mere functional tool as opposed to an accessory, the true symbolic meaning of the man’s umbrella – the sword, the vestigial battle-axe, the swagger stick – became lost.

So, today I am going to show you how I added my first man’s umbrella to my collection. And on a budget to boot!

Now, if money were not an issue, I’d run out and purchase a silver handle, bespoke Brigg Umbrella for $3,000.00 plus, in a heart beat. But, I’m on a budget. But, I’m not sacrificing my taste in quality.

So, instead I scoured eBay for an old Fox Paragon umbrella, manufactured by British steelmaker Samuel Fox. I managed to find two (a men’s and women’s) for around $40.00 a pop. I then contacted and sent the two units to the Kensington neighborhood of Brooklyn and the only known expert umbrella man left in the United States, Gilbert Center. Check it out!

Center recanopied both the paragons in pristine black nylon, striped rust from the frames, polished the brass tips, and gave one of the faux ivory handles a bit of TLC. The result? two rapier-thin 1950s umbrellas that total less than $120.00 each.

So, go out there guys and gals. Find your own umbrellas before the rainy seasons begins. Or, use it to dispatch evildoers and hail cabs. When properly cared for, your umbrella can last a lifetime. Just remember, your umbrella shouldn’t fold up in your briefcase, and should not be sold in bargain bins. It should be able to fend off thugs!

See you in seven!

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So it finally happened. Someone out there stole my credit card number and bought a bunch of phone card charges with it. Funny thing is, I never lost my card. It was still in my wallet!

So people, beware of identity theft: protect yourself. Now more than ever in this economy. My deduction is that when I gave the waiter at a restaurant my card to pay for the meal, the number was swiped. I did some research and found out that international phone cards do not need more than a credit card number to re-charge. The culprit then takes these fresh cards and sells them for less than face value. Viola! Instant 100% profit for the scumbag.

As you may have already seen, in the recent months, there have been different scams and frauds in the news, as well as some credit and debit cards being compromised from a certain processor.

I would like to share a few effective ways on how you can keep your accounts safe:

- Check your account statements for fraudulent activity every month. If you see any suspicious charges, notify your financial institution immediately.

- Sign up for Online Banking to keep track of your transactions in real-time.

- Do not call unknown phone numbers or visit suspicious web addresses.

- Do not give out account numbers or other personal financial information, unless you initiate contact.

- Shred personal and financial information before recycling.

- Ignore any correspondence with urgent requests for personal financial information. Many scammers will include upsetting or exciting messages to get people to react immediately.

- Review your credit report annually (or tri-annually, like I taught you). Visit Annual Credit Report dot Com.

- Use cash for smaller transactions.

Luckily, I called my bank in time and reported the incident. All is safe. See you in seven-ish!

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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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Now, keep in mind that this will not be in any order of importance. The first essential piece of clothing that I believe every man must own is a sheepskin coat. Why? With all the modern technology textiles, the warmest thing in a man’s closet are usually the ones invented by cavemen with sharp sticks. The sheepskin coat is stitched together from the skins of young sheep and still one of the best defenses against winter’s wraith. One side offers resilient leather that fends of the wind while the other consists of natural wool fleece that is still attached to the hide.

Winter wraith? It’s spring! What’s this guy talking about, you may be wondering. Ah, but that goes perfectly well with this site. Remember, how do the rich stay rich? Well, one way, is by purchasing things when they are lower in price, say a winter coat during summer time?

Alright, I’ll bite. So, what’s this coat going to run me? Well, a nice specimen of the coat is made by Tom Ford. As you can see from the picture up top, the lambskin coat can run up to $8,970.00. Yeah right! I know what you’re thinking. I felt the same way. Not in this economy.

So, what will I be sporting this coming winter? There is Canadian company called Mac Mor, that makes beautiful sheepskin coats, at a fraction of the cost. While still costing a few hundred dollars, it’s well worth it. I know what you’re thinking. You’re still not going to drop a few hundred dollars on a winter coat in the spring right? Not in this economy!

Okay, so here’s the kicker. I found a nice new Mac Mor sheepskin coat in my size (42, for those of you that want to know) on eBay for $100.00, but with a Best Offer option. It’s spring after all. I offered $49.00, and it was accepted! Like I said guys, buy nice things out of season. You can save a lot of money.

I also had my tailor sew on two elbow pads in dark brown suede to offset the tan color. The other reason is to reinforce the elbow joint since that is usually the weak point of the sheepskin jacket.

The picture really doesn’t do it justice, but all you have to do to make it look exactly like the Tom Ford coat is to unbutton the coat, flip up the collar, and if you must, dye it a dark brown. I personally like the neutral tan look. But hey, to each their own.

I tried the jacket on and I’ve gotta tell ya, it’s warm! I can only wear a t-shirt underneath without breaking out in sweat. So, hope you enjoyed the first segment in how to dress like a prince at a pauper’s price! See you in seven guys!

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Even with the current rainfall we here in the Bay Area have experienced as of late, there is still a shortage of water for the coming summer months. While we are close to facing mandatory cutbacks, the rest of you could use the money savings gained from our tips to conserve water.

The following tips can have households achieving a 10% reduction in water use by saving about ten gallons a day. Here is what you can do to help meet the challenge of cutting back.

Take shorter showers. Each minute you cut saves 2.5 gallons of water!

Turn off the faucet when you are brushing your teeth of washing the dishes. As I stated above, each minute you cut saves 2.5 gallons.

Don’t pre-rinse dishes. Scrape food waste directly into the compost bin. While this probably won’t add up to a minute, you can still save the proportionate amount of time it takes you to do all the dishes that month.

Use the Dishwater. Surprisingly dishwashers are often more efficient than hand washing. A modern dishwasher’s cycle uses as little as five gallons per load. Compare that to running the faucet at two plus gallons per minute.

Wait for a full load. Full loads are the most efficient way to wash clothes. A traditional clothes washing machine can run at forty plus gallons per cycle.

Use a broom. Hosing down sidewalks, driveways, and pavement is a wasteful practice. Running a garden hose can waste up to ten gallons per minute.

Install aerators on faucets. Installing aerators on kitchen and bathroom sinks can reduce indoor water use by about four percent. Inquire about FREE aerators from your local water department (the SFPUC for the local folks).

Check for leaks. Do you hear the toilet running or your faucet dripping? You could be wasting thousands of gallons per month. To check for leaks, turn off all water taps inside and outside your home. Locate your water meter, and if the dial is moving you may have a plumbing leak.

Adjust your sprinklers. This is so that water remains on the landscape, not the pavement. Reduce evaporation by watering during cooler temperatures at night or in the early morning.

Hope these tips help guys. See you in seven (-ish).

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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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How is it going readers? With the way the world economy is right now, you probably could be better right? Chances are, if you are reading this, you are living in North America (and yes, that includes you, Canada). And as difficult as it may be for you to believe, you really are rich. “How’s that now?” you may be asking. With rent, car and credit card payments that you can barely pay for, how can I possibly say you’re rich? Well, let’s take a look at the bigger picture.

Being a Real Estate Mogul, I have had the opportunity to travel to many countries outside of the United States. And believe you me, even the projects look like paradise compared to many third world country areas. The terrible reality is that over three billion people live on less than $2 per day while 1.3 billion get by on less than $1 per day. Seventy percent of those living on less than $1 per day are women. Do you know that the pimple-ridden punk kid spitting in your burger at McDonald’s makes more than 75% of the world’s population? In many parts of the world, there are people who don’t have food, never mind a Quarter Pounder with cheese.

You may be struggling financially. You may be living from paycheck to paycheck. The collection companies may be hounding you. You may be on the verge of giving up. It all seems so hopeless. But there is something you can do about it. And you can do it starting right now.

You can appreciate and be grateful for what you already have. To most of the world, you are living the dream life. You have clean water, fresh air, and you don’t live in a war zone. You may think your life sucks but there are billions of people who would gladly switch places with you in a heartbeat.

Take a look at all the things you already have and probably take for granted: freedom, safety, friends, and family. I’m pretty sure you have enough food for dinner tonight and breakfast tomorrow morning. You’ve probably got enough change in your pocket to get a latte at Starbucks. You’re living in a place with heat and may be even air conditioning. I bet you have a cell phone, a color TV, a computer and most importantly, access to the Internet.

Stop dwelling on the negative things happening in your life. Take some time off and just stop. Take a deep breath. Doesn’t that feel good? Have you noticed that when you think about bills, all you get in the mail are more bills? That is the law of attraction at work. Take a page out of the book, “The Secret” by Rhonda Byrne, you attract what you are and you are what you think. Change your thinking and you’ll change your life. If you’re always thinking, “My life sucks!” you will attract things that make your life suck even more. If you appreciate the things you already have and start thinking “My life is great!” you will attract things that make your life greater. It works.

I recommend you take a few minutes each day, stop and appreciate one aspect of your life. Realize that not everyone in the world can enjoy that aspect. You are special and fortunate enough to realize it. Put a smile on your face and you will feel instantly better. It really is a sad fact that most people don’t appreciate what they have until it’s gone. Don’t let that happen to you.

I hope you guys don’t find this too New Age but inspirational. In the fast pace world we live in now, it is often too easy for us to forget to just stop and smell the roses. And in many cases, that’s just all we need sometimes to get us through our stressful days.

While, I do not mean to ask you to feel better because their are people less fortunate than you in the world, I do want you to feel better about your situation. Don’t delight in other people’s misery, be delighted for everything you have.

See you guys in seven!

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Hello everyone! Ever wonder what life is like as a Real Estate Mogul? Well, now you can! I finally caved and signed up for the latest social networking craze, Twitter. I managed to dodge Facebook altogether, and it was a good thing I did!

Yesterday, it was discovered that Facebook quietly changed their “Terms of Use” to allow them to own and control all user content and information indefinitely. Check out the original article here. Do you know how valuable all that information is to researchers? It would fetch a hefty sum for companies who want to target specific age groups, sex, and other demographics to sell their stuff to. Facebook has since bowed to the pressure from their users, but who knows how long that will last?

In any case, back to Twitter. It is a service for friends, family, and co–workers to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing? Many believe it to be the next step above the current ultimate stalker website, Facebook. However, it does have its uses. One thing I am going to use it for is as a digital scheduler. If I needed to find out what I was doing on a particular day and time, I could just log in and scroll back!

So, if you are interested in what I do all day, scroll down to the bottom right of the site, and click the Twitter button. So, if you ever need to find or contact me, you can! I always have time to talk to people. I also threw in a few other buttons down there as well. With AIM, you can send me an Instant Message regarding a property for sale, or just to say Hi. If I am not logged in, it will be routed to my cellphone as a text message.

I also included a link to my LinkedIn account, as I am a big believer in the power of social networking. It also gives you a better understanding of what I do and who I am.

Okay guys, till next time, think rich, act rich, and be rich!

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Hello readers! I just finished a book called The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach. While I do not agree with every idea in his book, I do want to share with you his main point, the juice of his book, or essence if you will. The biggest secret to building financial security and wealth is automating your savings. And once you know how, you too can get rich automatically.

Step One: Put a minimum of 10% of your income into a 401k or similar retirement fund every month straight from your account. Better yet, put in the maximum amount your employer will match. Increase your contribution to 20% of your income when you can. Invest this money in portfolios that are appropriate to your age and risk tolerance. The key is to set up an automatic transfer. After a while, you won’t notice that the 10% is gone and you will make due without it!

Step Two: If you have any credit card debt or other consumer debt, put 20% of your income toward paying the balances down to zero. Do not use the cards until that is done. Give yourself a cash allowance each month for necessary expenses. When the cash is gone, stop spending. If you do not have any credit card debt, bravo! You are well ahead of the curve. In that case, invest more!

Step Three: Pay off your full credit card balance every month. Do not skip a month for any reason. This will be difficult for most Americans, just because we are a nation built on debt (LOL!). In that case, refer to Step Two first. The goal is to carry no consumer debt beyond your house and cars (if you must). Work towards the day when you are debt free. Pay off consumer debt first and then pay extra on your mortgage. Even $100 a month extra can save you tens of thousands of dollars in interest on a typical mortgage.

Step Four: Put money aside automatically with automatic fund transfers by your bank for major expenses such as taxes, insurance, vacations, wish list items, college, etc. A good budget will let you know how much you’ll need. Remember, my advice on setting aside one day out of the month to go over finances? Do it!

Step Five: Live on the difference. You will know you are doing okay if you can pay off your credit card balance every month and you have cash left in your pocket and checking account. On the flip side, you will know there’s a problem when you can’t pay off a credit card balance right away or your bank balance starts dropping instead of going up. Those are your signals to adjust your budget, your spending and your savings. Monitor your money. Get rich.

While not everything here comes from David Bach’s book, all of it was inspired by it. I’ve have found that the most commonly used method among rich people is the automatic deduction and automatic savings. As I mention earlier, “After a while, we just didn’t miss it,” is the common saying.

Take care guys, and see you in seven!

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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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One of these companies is called PayingPost.com. Basically, after you sign up and get your blog approved, you login and look under Open Opportunities. You then find one you are qualified for and reserve it. Once you do, you have six hours to write and post the blog with the specified conditions, and report it to them. Payouts vary depending on your Alexa ranking and blog traffic.

Blogging has come a long way in the last few years. For the first time, it was easier for people to find and identify bloggers with similar tastes and subscribe to their opinions. On the flip side, people have been able to create a new profession by blogging for a living. Depending on your audience, you can make a nice livable income by just writing your opinions.

That is where sites such as PayingPost.com comes into the picture for people who want to advertise on blogs. It is a bridge between advertisers and bloggers. It is simple to use and they have a nifty new layout as well. Clear and concise, no unnecessary filler web content. Just the way I like it!

So if you want to make money blogging, be sure to sign up for PayingPost.com. The great thing about blogging is you can make as much or as little money as you would like.

Okay guys, see you in seven!

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This year I have started a monthly habit of going over my finances every month on an appointed day. I have chosen the 15th of every month, and have vowed myself to drop everything on that evening to take out and update my debt and asset column.

Therefore, last Thursday evening I looked over my list and was happy to see that my debt column had gone down, and my asset section had gone up. However, that wasn’t enough for me. We are at an economic decline. I needed to find more ways to make myself rich and keep myself that way.

During periods of economic decline, we all find ourselves squeezed from both ends; facing both rising prices and loss of income. The media is not making it any better either by reporting that we are heading into a recession. So, while we may not have control over the economy, we do have control over how we prepare for financial difficulty.

Here are my top ten things to do (forgive me if I have said it before, it just means it’s that important to mention it twice):

1. Bring your own breakfast and lunch to work everyday instead of purchasing them. Food is always cheaper at a supermarket than a restaurant. Just think how much you will save if you just eat cereal or oatmeal from home versus a $5 breakfast sandwich with your $6 double soy latte from $tarF*ck$? Bringing your own lunch will save you even more money. Typical lunches run from $10 to $25. Packing your own only costs you $2-$5 if you know how to buy.

2. Separate “wants” from “needs.” Every time you are tempted to buy something, ask yourself this, “Do I really need this?” When money is tight, it should not be spent unless absolutely necessary.

3. Pay for unreimbursed medical expenses and dependent care with pretax dollars using a flexible savings account. This means using money from your paycheck before you get taxed. This is the same money that goes into your retirement accounts. Check with your employer for availability.

4. Keep track of all your spending. As simple as this sounds, the act of writing it down will help you give it more notice. If you know where your money is going, it will be easier to make changes if you need to.

5. Avoid using credit to pay your bills. While it may make things easier now, using credit only increases your monthly payments in the future.

6. Set up a direct deposit for your paycheck, and have some of it directly deposited into your savings account. Having this automated system set up is the key to gaining longterm wealth. I will come back to this tip in the future.

7. Avoid spending a significant amount of money on periodic purchases, like gifts and vacations. Other things to avoid are magazines, newspapers, and typical novelty drinks. While you may feel good while you are spending the money, you probably will be wishing you had the money back later.

8. Cut or downgrade your services. Can you live with cheaper cable services or no cable at all? If you have a cellphone, consider cutting your land-line.

9. Instead of buying a book, buying a magazine, or renting a video, use the library. It’s free!

10. Try to lower your energy bill. Turn off appliances and lights when they are not needed. Purchase energy efficient light bulbs. When you can, try using a fan instead of air conditioning and putting on a sweater instead of turning on the heat.

Okay, till next time guys, be smart, invest smart, and save smart.

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This is something I saw on the Boston Globe website this morning, and I had to share it with you guys. I am also using it as an example of why it is important to carefully scrutinize your staements as well as your credit reports. I have reprinted the article in full below for your convenience. Enjoy!

Several Internet complaint boards are filled with comments from credit card customers from coast to coast who have noticed a mysterious charge for about 25 cents on their statements.

Take a look at your credit card statements, and if the charge is there, don’t let it slide. It’s what the thieves want you to do. Instead, file a dispute with your credit card company, and lodge complaints with the Federal Trade Commission and the Internet Crime Complaint Center, which is run by the FBI, the National White Collar Crime Center, and the Bureau of Justice Assistance. Federal law enforcement officials tend to react when the complaints reach a certain volume.

If you are one of the millions hit with this scam, don’t let it slide! As the article stated, if you let this one slide, you’re just giving the crook the okay to proceed with a larger charge. Call your bank and put in a dispute and maybe sign up for fraud alert.

Okay, till next time guys, be smart, invest smart, and save smart.

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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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I was going over my tri-annual credit report the other day, and noticed some things I needed shared with you guys when examining your credit report. Yes, I do mean tri-annual. There are three major credit bureaus, and they each give out free reports once a year, so I spread them out evenly throughout the year to read.

Anyways, first and foremost, blitz significant errors. Attack them and correct them head on! Your credit score is calculated based on the information in your credit report, so certain errors there can really cost you big. However, not everything that’s reported in your file matters to your score.

Here’s the stuff that’s usually worth the effort of correcting with the bureaus:

1. Late payments, charge-offs, collections or other negative items that aren’t yours. These are the big ones. If you notice any of these, blitz, yes blitz, them immediately like your life depended on it! Because, you know what, it just may when you’re looking to close that big loan.

2. Credit limits reported as lower than they actually are. You need to get credit for what you’ve earned. Simple.

3. Accounts listed as “settled,” “paid derogatory,” “paid charge-off” or anything other than “current” or “paid as agreed” if you paid on time and in full. This should actually be number two if I was listing this in order of importance. In any case, blitz these too.

4. Accounts that are still listed as unpaid that were included in a bankruptcy. This is the same as getting credit for what you’ve earned. If you spent the last ten years paying for your bad financial habits, consider your sins paid for. They shouldn’t be on your record still. Get rid of them.

5. Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report. This is the same as number four. Consider your debt paid.

You actually have to be a bit careful with this last one, because sometimes scores actually go down when bad items fall off your report. Believe it or not, it’s a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict in advance.

Now, here are some of the stuff that you typically should not worry about:

1. Various misspellings of your name. Believe it or not, I have an alias of Alexander J. Leigh on my credit report. I don’t know how it got there but it’s never bothered me for the last ten years it’s been on there.

2. Outdated or incorrect address information. This one is simple. People move all the time. As long as your identity has not been stolen, it’s okay to have an incorrect address. There may be someone with the same first and last name as you who has lived there.

3. An old employer listed as current. As with the old or incorrect address, this is okay. Fix it if you like, but I wouldn’t bother.

4. Most inquiries. These are not hard pulls, so the companies had only limited access to your information. Many credit card companies tend to do this so they can send out credit offers.

Just a note about number one and two, if the misspelled name or incorrect address is because of identity theft or because your file has been mixed with someone else’s, that should be obvious when you look at your accounts. You’ll see delinquencies or accounts that aren’t yours and should report that immediately. However, if it’s just a goof by the credit bureau or one of the companies reporting to it, it’s usually not much to sweat about.

Oops, here are two more items you don’t need to correct:

1. Accounts you closed listed as being open. If it has a zero balance, I would leave it alone for the time being. It should drop off by itself.

2. Accounts you closed that don’t say “closed by consumer.” Closing accounts can’t help your score, and may hurt it in the short run. If your goal is boosting your score, leave these alone. Once an account has been closed, though, it doesn’t matter to the scoring formulas who closed it. If you messed up the account, it will be obvious from the late payments and other derogatory information included in the file.

Hmmm, while we are on this topic, here are some other actions to beware when you’re trying to improve your score:

1. When you ask a creditor to lower your credit limits, it will reduce that all-important gap between your balances and your available credit, which could hurt your score. If a lender asks you to close an account or get a limit lowered as a condition for getting a loan, you might have to do it, but don’t do so without being asked.

2. When you make a late payment, it will ironically hurt a good score more than a bad one, dropping a 700-plus score by 100 points or more. If you’ve already got a string of negative items on your credit report, one more won’t have a big impact, but it’s still something you want to avoid if you’re trying to improve your score.

3. When you try to consolidate your accounts, and apply for a new account, it can ding your score. So, too, can transferring balances from a high-limit card to a lower-limit one, or concentrating all or most of your credit-card balances onto a single card. In general, it’s better to have smaller balances on a few cards than a big balance on one.

4. On the other hand, when you apply for and get an installment loan, it can help your score if you don’t have any installment accounts, or you’re trying to recover from a credit disaster like bankruptcy.

Oh, and just FYI, all these suggestions work best if you have poor or mediocre scores to begin with. Once you’ve hit the 700 mark, any tweaking you do will tend to have less of a positive impact.

And if your scores are in the “excellent” category, 760 or above, you probably won’t be able to squeeze out any more than a few extra points despite your best efforts. There’s really no point, anyway, since you’re already qualified for the best rates and terms.

Whew! Okay guys, hope this helps a bit. See you in a few!

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Hello guys! Sorry for the late post this week, but I had to head up to Alaska and pick out my turkey (that’s a Senator Palin joke, guys). Just kidding!

With a decrease in buyers as of late, people have had to make their wares (house) more attractive to potential buyers. People are no longer overlooking the minor details, and nit pick on the smallest problems. Therefore there has been a trend of refreshing of homes, or remodeling projects in all areas.

Here are some tips that hopefully will come in handy when you do decide to hire a contractor.

1. Get at least three written estimates. Chances are you got a high quote and having two more to compare it with is just good sense. In this market, you may be able to use the lower two to leverage a better price with the contractor you like best.

2. Get references and call to check on the work. If possible, go by and visit earlier jobs. This is just good sense. you want to be able to examine and preview the goods or workmanship before you buy. It’s also a good idea to check with previous customers.

3. Check with the local Chamber of Commerce or Better Business Bureau for complaints. If nothing else, they keep records of any disciplinary actions or suspensions that your potential contractors have received in the past. You can also check to see if they are bonded or even licensed! Although I have to warn you from personal experience, a contractor has to do something really really bad to have a black mark put onto his record.

4. Be sure that the contract states exactly what is to be done and how change orders will be handled. Don’t leave anything up in the air. It is better to get things straight and clear before any work starts. You don’t want someone to tear down your roof and stop while it rains because you guys could not come to terms with something minor like who pays for the paint.

5. Make as small a down-payment as possible so you won’t lose a lot if the contractor fails to complete the job. I always like to structure the last final payment to be as much of the total contract price as possible. That way, I hold all the leverage.

6. Be sure that the contractor has the necessary permits, licenses, and insurance. You don’t want to get sued later, after you sell the house, by the new owners, and find that you have no one to file a cross-complaint against.

7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it. Please check with the local laws in your area though. I usually put in a penalty clause, such as a $100 per day charge for delays in completion. Keeps the contractors on time. Of course, if there are extreme circumstances, I always have the option of waiving it.

8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts. It’s good to know who exactly is working on your property. As with the above tip, if there are subcontractors, you need to get their information, in case you are ever sued. More cross complainants.

9. Get the contractor to indemnify you if work does not meet any local building codes or regulations. This may be a bit difficult. By human nature, no one wants to be liable for anymore than they have to be. So, I suggest you write it right into the contract. If they complain, choose another contractor!

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage. Don’t give them the final payment until the site is clean. You have no idea how much throwing away garbage costs at the dump. Simple rule, you make the mess, you clean it up.

11. Guarantee that materials used meet your specifications. I always like to purchase my own materials. Especially the simpler, smaller things such as light fixtures and what not. That way I know exactly how much is spent. Some contractors buy cheaper products and still charge you for the more expensive ones to make a few bucks.

12. Don’t make the final payment until you’re satisfied with the work. Period.

I don’t have anything against contractors! Don’t get me wrong. I don’t think all of them are bad, or think ill of them as a group. I am merely sharing some tips on how to protect yourselves when hiring a contractor to work on your home. Hope you can use some of these! See you in seven (or fewer, this week).

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Now is the time to buy. I am pretty sure you have been hearing that everywhere. Prices are low, and it seems everyone is selling. Why not take the plunge now? I mean, prices can only go up from this point right? Ah, but no one is lending, and what you have saved up isn’t enough. Kind of a catch twenty two eh? Well, if your income and savings are making homebuying a challenge, consider these options.

1. Investigate local, state, and national downpayment assistance programs. These programs give loans or grants to cover all or part of your required downpayment. National programs include the Nehemiah program, and the American Dream downpayment fund from the Department of Housing and Urban Development.

2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do with a mortgage. This is called “owner carry” locally.

3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even an third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors’ names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.

4. Get help from your family. Perhaps a family member will loan you money for the downpayment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history. Time to hit up mom and pop, or that rich uncle of yours.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your downpayment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner. This will also let you see what the economy will be like. You may decide to bail after a year, and this give syou the option to.

6. See if you can qualify for a short-term second mortgage to give you the money to make a higher downpayment. This may be possible if you have a good income and little other debt. This is more difficult as of late, but it is still possible. Talk to your local banker to see if you qualify.

Hope this helps guys! See you in seven!

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Hi guys, I have noticed in the past few months that many of my clients are “downsizing” their properties. Whether it is due to forclosures or just down to plain wanting to save more money, many are trading their houses for more modest dwellings. A popular alternative has been condominiums. However, I have gotten many questions about moving into one as many are not used to having to pay HOA (Homeowner Association) fees, and such.

So, before you buy into a condminium, contact the condo board with the following questions I have prepared for you. In the process, you’ll learn how responsive, not to mention how organized its members, your potential neighbors, are.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale. Remember, the goal is to eventually move back into a house when the ecomomy gets better.

2. What covenants, conditions, and restrictions (CC&R), and bylaws govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you. Better safe than sorry, I always say.

3. How much does the association keep in reserve? How is that money being invested? If you are going to be making payments each month to a fund, you better well know what it’s being spent on. And that you are seeing some type of return in enjoyment in the form of landscaping for example. Much like your paid taxes, isn’t it?

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.To determine if the assessment is reasonable, compare the rate to others in the area. Most of the information is usually a phone call or email away.

5. What does and doesn’t the assessment cover? Some general things include common area maintenance, recreational facilities, trash collection, and snow removal, depending on your area.

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building? Are people coming and going constantly? Why? Did they move in just to find soemthing seriously wrong? You never know.

8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly. And more importantly, why are they being sued? Did they cut corners in the waste management? Or maybe they skimpped on the building materials?

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments. Find out!

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