JJ's Journal

Go Army!

My older brother went to West point. He and his wife invited myself and a friend to go with them to the army/navy game in Philadelphia. What a blast! We were in a group of about 30 people, a mix of army , navy, and even one air force grad. A lot of friendly rivalry and good humor.

Jumpstart Your Brain

Do you ever have a hard time deciding what to work on next?

I mean you have all these ideas of things you want to do,and a seemingly endless supply but even more ideas.

Whenever I get overwhelmed by choices, I take out my trusty legal pad and my pen and get everything out on paper.

With all of my ideas out on paper, I'm able to really look at what would be the very BEST thing to work on right NOW... and the NEXT best thing...until I get to the top 5.

Then I get to work on just the very first one...and complete it.

I can't tell you how freeing this is.

This way, I can spend my available time on working not DECIDING.

I received this tip from one of my real estate coaches, I hope it works for you as well.

Trying to get healthy?

If you are trying to get healthy a website to check out is www.sparkspeople.com.  This website is awesome.  It allows you to track what you eat in a on-line food journal,  gives you helpful tips to get yourself in shape, helps you plan out a map to get to your goal weight thats right for you, lets you network with other people trying to reach the same goals you may have, on-line tools about food, weight, exercise, health.  The best part is it is free to join.  Hope you find so value on this site.

Planning for retirement

There’s no time like the present to start a retirement savings program. Consider these options, and remember to consult a financial planning, tax, or legal expert to ensure that you understand the details, rules, and restrictions.

IRA (Traditional) People 50 or older by the end of a calendar year can contribute an additional $1,000. There’s no deduction phase out if neither the individual nor spouse is covered by an employer-sponsored plan. Contributions for 2006 can be made until April 16, 2007.
Contribution limits: $4,000 for a single person or $8,000 for a couple filing jointly (same for 2007)

IRA (Spousal) If your spouse participates in a retirement plan through work, you receive a full tax deduction on your contribution to your own IRA if your joint adjusted gross income is less than $150,000. The deduction is phased out gradually up to $160,000 in joint adjusted gross income. You can contribute an additional $1,000 if you’re age 50 or older by the end of a calendar year. Contributions for 2006 can be made until April 16, 2007.
Contribution limits: $4,000 (same for 2007)

Simplified Employee Pension Plan These plans are simple to set up and administer, making them very popular with independent contractors. SEPs work like a traditional IRA but have higher contribution limits. Employers offering a SEP don’t have to include employees in the plan for their first three years of employment.
Contribution limits: 20% of self-employment income or 25% of compensation for employees, up to $220,000 in income ($225,000 for 2007)

Solo 401(k) These plans apply only to independent contractors with no employees. The main benefit is the high level of tax-deductible contributions allowed. You can also borrow up to 50 percent or $50,000 of the plan’s assets, but the loan has to be repaid within five years.
Contribution limits: The first $14,000 of income, plus 20% of any additional income up to $220,000 in 2006. (The limits are $15,000 and $225,000, respectively, for 2007.)

Keogh Plan These plans can be set up as a profit-sharing plan or defined-benefit plan, which uses a formula (based on salary and years of service) to determine a participant’s annual retirement income. These plans aren’t very popular because they require a professional to set up and administer thanks to the additional IRS filings involved. Employers must cover all employees immediately.
Contribution limits: 20% of self-employment income or 25% of compensation for employees, up to $220,000 in income in 2006 ($225,000 for 2007)

Source: Marc Jacobson, Marc Jacobson & Associates, Northbrook, Ill.

8 easy ways to save money (that you can start today)

Can’t figure out why your bank account isn’t bigger? Perhaps you need to reevaluate how you manage your money. Here are some places to start:

1. Sweat the small stuff. Many people think spending $5 here and $10 there is no big deal. But if you saved that amount every day, it could add up to a very large pot of dough through compounding. For instance, saving $5 per day can mean saving $1,825 a year, which, with a 5 percent return, will turn into more than $20,000 in 10 years and more than $60,000 in 20 years.

2. Don’t pay bills early. Whether you’re paying personal or business invoices, keep your money earning interest in your own account as long as possible by paying bills when they’re due, not early.

3. Don’t pay bills late. Set up a system to pay recurring bills mortgage, utilities, and credit cards on time. If you’re getting hit with late fees for silly things like movie rentals, sign up with an online movie delivery service that doesn’t charge late fees.

4. Take advantage of trade show discounts. Scour exhibitor information to learn which exhibitors offer discounts during the show. Consider holding off making purchases until the last day of the show for possibly bigger discounts. Exhibitors might be more willing to offer price cuts to meet sales goals or avoid shipping products back home.

5. Make smart choices about insurance. Take the time to shop around for all your insurance policies, especially business, auto, medical, and home insurance. Raise your deductibles, bundle policies with the same insurer to get bigger discounts, and ask about discounts for such things as adding a security system. Also, keep a clean credit record because more and more insurers are using your credit information to price home owners’ policies.

6. Ask your vendors for discounts. Many vendors, such as your printer, might agree to discount their services if you agree to pay early or in cash.

7. Recycle printer cartridges. Printer cartridges are expensive. Typically, when you bring your used cartridge to the supplier, you get a discount on the purchase of a replacement. Check your phone book for a local recycled printer cartridge supplier.

8. Think before you sign up. Join only business organizations that can bring you business. Also, if you’re just starting out in the business, many organizations will allow you to join at a reduced rate or allow you to pay dues each month rather than in a lump sum.

Sources: Michael Fischer, author of Saving and Investing: Financial Knowledge and Financial Literacy That Everyone Needs and Deserves to Have! (AuthorHouse UK DS, 2005); American Express Small Business (www.americanexpress.com); Entrepreneur.com, Insurance Information Institute (www.iii.org); BusinessTown.com LLC

Avoiding foreclosure

Avoiding foreclosure

A pending foreclosure is stressful and confusing. Owners should contact their lender to see whether a loan workout option is available.

If the problem is temporary, options include Forbearance. A lender may allow a borrower to reduce or suspend payments for a short period of time, after which another option must be agreed on to bring the loan current within a specified time period. A forbearance option is often combined with a reinstatement, especially if the borrowers know they’ll have enough money to bring the account current. The money might come from a hiring bonus, an investment, an insurance settlement, or a tax refund.

Reinstatement. Lenders may be willing to discuss accepting the total amount owed to them in a lump sum by a specific date.

Repayment plan. A borrower might be able to forge an agreement with the lender to resume making regular monthly payments, in addition to a portion of the past due payments each month, until the loan is current.

If the problem is long-term, options include Mortgage modification. If the borrower can make at least some of the payment on the loan but doesn’t have enough money to bring the account current, the lender might be willing to permanently change one or more terms of the original loan to make the payments more affordable. Examples include:

• Adding the missed payments to the existing loan balance
• Changing the interest rate, including making an adjustable rate loan into a fixed-rate loan
• Extending the number of years to repay the loan

Claim advance. If your mortgage is insured, you may qualify for an interest-free loan from your mortgage guarantor to bring your account current. The repayment of the loan may not start for several years.

If keeping the home isn’t an option, alternatives include Sale. The lender will usually agree to a specific amount of time to find a purchaser and pay off the total amount owed. The borrower will be expected to obtain the services of a real estate professional to market the property aggressively.

Pre-foreclosure sale or short payoff. If the property’s sales value isn’t enough to pay the loan in full, the lender might accept less than the full amount owed to cut its losses. This option can also include a period of time to allow the borrower’s real estate professional to find a qualified buyer. A pre-foreclosure sale could provide additional funds to pay other lien holders and a few moving costs.
Assumption. The lender might agree to permit a qualified buyer to assume the mortgage payments, even if the original loan documents state that it’s nonassumable.

Deed in lieu. The lender might agree to allow the borrower to voluntarily “give back” the property and forgive the debt. Although this option sounds like the easiest way out, the borrower must generally attempt to sell the home for its fair market value for at least 90 days before the lender will consider this option. Also, this option may not be available if the borrower has other liens, such as judgments by other creditors, a second mortgage, or IRS or state tax liens.

Source: U.S. Department of Housing and Urban Development (www.hud.gov)

Curb appeal wins in housing resale wars

Hello Everyone,  I found this on the Reno Gazette Journal Website and found it to be useful and accurate.  I hope you find it to be useful.

Curb appeal wins in housing resale wars

BY DAVID BRADLEY
For AP Weekly Features

With worries over housing values falling, more attention now may be focused on an overlooked aspect of selling a home: curb appeal.

Most homeowners lavish attention on the interior, thinking buyers will warm to neutral colors, updated appliances and spic-and-span closets and floors.

But if the outside looks so-so, buyers and their real estate agents may turn up their noses and move on to the next property. At this point, well-appointed and tasteful interiors are a moot point.

“If we lose them at the curb, they’ll (buyers) never come inside,” says Houston Realtor David Montz. “If the buyer already has a negative feeling, it’s going to affect how they feel about the house.”

And in many cities where time-on-market can drag on for more than 90 days, homeowners can gain a competitive edge by paying close attention to the external factors buyers may find pleasing. Depending on the condition of your home, you may spend from a few hundred dollars to several thousand to bring your exterior up to competitive snuff.

Routine improvements you can perform quickly and cheaply include a fresh coat of paint to siding and doors, power washing the entire exterior or filling cracks in the driveway and walks. Refresh the landscape with a shot of fertilizer to green up the lawn, plant fresh flowers or potted plants. Railings should feel snug and secure.

Some homes may need significant investment to overcome visual eyesores that might give buyers cold feet. New windows, siding and tuck pointing to brickwork can be costly, but make the home appear well-maintained. Such improvements also may help you pass muster with finicky home inspectors.

Don’t overlook your roof. The roof accounts for 40 to 60 percent of the exterior view of your home. Buckled, warped or cracked shingles are turn-offs for buyers. Whatley Bush of Monier Life Tile, an Atlanta maker of faux wood shakes, slate and tiles made of concrete, says if the roof must be repaired or replaced to ready a home for sale, homeowners ought to consider materials beyond asphalt shingles to other “three-dimensional products that fundamentally change the character of the house.”

Buyers will perceive there’s something different about the house” because the roof material appears more substantial and upscale, says Bush. You can expect to pay $400 to $500 for his product and upwards of $1,000 for real cedar shakes, slate or tile per 10 feet by 10 feet square. But those costs are recoverable: according to the National Association of Realtors Value of Housing Characteristics study, the look of a slate or cedar shake roof can add up to 27 percent to the selling price of a home.

After years of giving short shrift to exteriors, home sellers in the super-competitive sales market in suburban Chicago have been jolted to the fact the outside of a home is important. Home improvement contractor Robert McDowell of McDowell Exterior Builders in St. Charles, Ill., says sellers “need to freshen up the exterior and make it current with todays styles.”

“My guess is the majority puts more energy into the interior,” says McDowell. “But people have to have both a marketable interior and a marketable exterior in today’s selling environment. You can’t get someone through the front door if they don’t like the outside of your house.”

Other ideas to bring the exterior of your home up to competitive speed:

• Paint. Especially important if your home color is dated or out of style. Don’t forget fresh coats on trim and around windows.

• Clean. Power wash walls, driveways and sidewalks to remove debris and cobwebs. Clean windows.

• Clean up the landscape. Trim bushes below window height. Tidy up flowers and keep the lawn mowed and edged. Store toys and equipment out of sight.

• Repair. Fix lighting, fill cracks in driveways, secure screen doors and railings, replace cracked window panes. Remove and replace loose shingles. Reattach sagging gutters and downspouts.

• Add color. Potted plants and fresh flowers are inviting and add visual appeal.

President's Day

Since we just celebrated President's Day I thought it would be fitting to put up President Lincoln's famous last speech.  The following was taken from the website www.gettysburg.com.  If you have time to check this site out you should as it  has many Gettysburg facts.

The Gettysburg Address

The Gettysburg National Cemetery was dedicated by President Abraham Lincoln a brief four months after the Battle. Lincoln's speech lasted only two minutes, but it went into history as the immortal Gettysburg Address.

"Four score and seven years ago, our fathers brought forth on this continent a new nation: conceived in liberty, and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war. . .testing whether that nation, or any nation so conceived and so dedicated. . . can long endure. We are met on a great battlefield of that war.

We have come to dedicate a portion of that field as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

But, in a larger sense, we cannot dedicate. . .we cannot consecrate. . . we cannot hallow this ground. The brave men, living and dead, who struggled here have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember, what we say here, but it can never forget what they did here. It is for us the living, rather, to be here dedicated to the unfinished work which they who fought here have thus far so nobly advanced.

It is rather for us to be here dedicated to the great task remaining before us. . .that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion. . . that we here highly resolve that these dead shall not have died in vain. . . that this nation, under God, shall have a new birth of freedom. . . and that this government of the people. . .by the people. . .for the people. . . shall not perish from the earth. "

Lending Information

We found the following information on the National Association of Realtors Website and thought this would be helpful to you. 

Most families, buying a home is the biggest and smartest purchase they ever make. Unfortunately, not all loans are in their best interest.

When loans hurt instead of help, they can quickly lead to foreclosure and even bankruptcy. It's important to learn the warning signs and common problems associated with predatory lending, and to ask the right questions when shopping for low cost loans.

The term, "predatory lending" covers a wide range of abusive practices. Some may be predatory for one borrower but not for another, because everyone's circumstances are different. Predatory lenders often take advantage of first-time homebuyers and others who may be vulnerable to high-pressure sales tactics, so it pays to know how to protect yourself and who can help.

Possible warning signs of a predatory loan

• It sounds too easy: "Guaranteed approval" or "no income verification" sometimes indicate that the lender doesn't care whether you can afford to make the payments over the long haul.
• Excessive fees: Make sure fees are typical of those in your market. Because these costs can be financed as part of the loan, they are easy to disguise or downplay. On competitive loans, fees are negotiable. It is common for home buyers to pay only one percent of the loan amount for prime loans. By contrast, a typical predatory loan may cost five percent or more. 
• Large future costs: High-risk adjustable rate mortgages with payments that rise substantially after a short introductory period are seldom appropriate for families who already have had problems repaying other loans. Home buyers should also avoid a large, single "balloon" payment (a lump sum due at the end of the loan's term). 
• Closing delays: A lender who deliberately delays the closing may be waiting for the commitment on a reasonably-priced loan to expire.
• Over-valued property: Inflated appraisals can allow for excessive fees to be included in the loan, resulting in the borrower owing more to the bank than the home is worth.
• Barriers to refinancing: Prepayment penalties can make it hard for borrowers to refinance and take advantage of a lower-cost loans.
• No down payment loans: These loans may be split into two mortgages, with one having a much higher cost. Home buyers should be sure they can afford the payments.
• Unethical document management: An ethical lender or broker will always require you to sign key loan papers, and they will never ask you to sign a document dated before the date you sign it.   

Some common problems associated with predatory lending

Nearly all predatory lending occurs in the "subprime market," where loans are sold to people with less than ideal credit histories. Subprime loans have played an important role in helping millions of consumers achieve homeownership, but, unfortunately, some lenders abuse their role and take unfair advantage of vulnerable borrowers. Here are some common problems with predatory loans:

• High interest rates and fees: Predatory lenders often charge extremely high interest and fees that are added into the total amount of the loan the borrower must repay. These lenders charge what they can get away with, not a fair amount based on the credit history of the borrower.
• Broken promises & bait and switch: Sometimes hosme buyers are offered a new loan or a refinance of an existing loan that seems to meet all of their needs--only to find that interest rates and fees have changed when they get to the closing table. Agreeing to last-minute changes can cost thousands of dollars and result in a loan they just can't afford.
• Loans that start low and go high: Adjustable rate loans are popular in today's market, but many that seem affordable are likely to have steep cost increases in the future. Avoid "payment shock" by considering whether you can pay for the loan both now and in the future.
• Loan "flipping": Too many homeowners are persuaded to refinance their mortgage, sometimes repeatedly, when there is no real benefit. Even when a family receives some cash from a refinance, the gains should be weighed against the costs of excessive fees and a higher loan amount.
• Steering: Some families who receive subprime loans could qualify for a much more affordable home loan. Predatory lenders use aggressive sales tactics to steer families into unnecessarily expensive loan products.

Ask the right questions when shopping for the lowest-cost loan

REALTORS® develop relationships of trust with the families they serve, and can help you avoid predatory loans by encouraging careful shopping. Ask these important questions:

• What is my credit score? Can I have a copy of my credit report?
• What is the best interest rate today? Do I qualify?
• Is the loan's interest rate fixed or adjustable?
• What is the term (length) of the loan?
• What are the total loan fees?
• What is the total monthly payment? Does this include property taxes and insurance? If not, how much will I need each month for taxes and insurance?
• Is there an application fee? If so, what is it, and how much is refundable if I don't qualify?
• Are there any prepayment penalties? If so, what are they and how long do they last?

If the loan is an adjustable rate mortgage (ARM), ask:

• What is the initial rate?
• How long will that rate stay in effect?
• How is the adjusted interest rate determined? (Generally, a specified amount-the "margin"-is added to a current published rate-the "index.")
• How often can the rate change?
• How much can the rate go up each year and over the life of the loan? What is the maximum monthly payment you could be required to pay? Would you be able to afford it?
• Does the loan set a minimum interest rate?
• Do the monthly payments gradually decrease the amount you owe even if interest rates increase? (With some loans, the amount you still owe can increase rather than decrease each month-called "negative amortization.")
• Does the interest rate increase if your payments are late?
• Could you qualify for a loan with the maximum interest rate permitted under the mortgage? If not, do you anticipate earning more in the future so you will be able to afford the higher payment?
• Can the adjustable rate mortgage loan be converted (changed) to a fixed rate without refinancing into a new loan? Is there a charge to convert?

Other ways home buyers can protect themselves from predatory lenders

• Check out lenders with the Better Business Bureau, government websites, or other consumer groups. How long has the lender been in business? Have consumers filed many complaints? Does the lender belong to a trade association with ethics requirements for its members?
• Refuse to participate in transactions that may be fraudulent.
• Share predatory lending "horror" stories with regulators, other consumers, REALTORS®, counseling groups, housing professionals, and the media.
• Make contracts subject to the homebuyer receiving approval from a lender for a fair and affordable loan.
• Avoid unnecessary contract extensions that could cause the lender's loan commitment to lapse.
• Get educated on the value of your home by asking your REALTOR® for a comparative market analysis.
• Review the HUD-1 closing statement before closing. Upon request, home buyers have the right to see this information 24 hours before the loan closing.
• Report possible violations to appropriate federal, state and local officials.

This information is from the brochure, "Shopping for a Mortgage? Do Your Homework First," published by the NATIONAL ASSOCIATION OF REALTORS® and the Center for Responsible Lending.

New Year Resolutions

Hello Everyone,

With the New Year just around the corner it is time to start thinking about your New Year Resolutions.  When you think about them you might want to include the maintenance of your home.  By breaking down the tasks over the year 2007 you can restore some of the luster of your home.  The following is a Maintenance Checklist to get you started.

January

Service heating system and change filters.

Check water pipes and drains for leaks

Change batteries in all smoke detectors

February

Check weather stripping around doors for air leaks.

Test all GFI reset buttons

March

Check roof for loose shingles

Repair or replace any fence posts or loose fencing material.

Replace furnace filters.

April

Clear yard drains of dirt and debris

Test sprinkler system and adjust if necessary

Establish rodent and pest control

Check outside roof line to find holes where birds or other animals might enter

Check batteries in smoke detectors.

May

Touch up exterior paint and trim as needed

Check for cracking concrete and seal to prevent moisture from increasing damage.

Clean dryer vent

June

Drain hot water heater

Test hot water heater pressure valve

Silicone tub and tile grout

Silicone shower doors

Seal where tub and shower meets vinyl

Check water pipes and drains for leaks

July

Clean out faucet aerators

Have air conditioning system service and filters replaced

Check batteries in smoke detectors

August

Check attic and crawlspace for adequate ventilation

Check electrical system load center

September

Check roof and clean all roof valleys and gutters

Replace missing shingles, flashing or siding

Check toilet tanks to prevent dripping

Check batteries in smoke detectors

October

Disconnect garden hoses to avoid frozen hose bibs.

Touch up interior paint as needed.

Have chimney cleaned

Replace air conditioning filters

November

Check and clean kitchen vents and filters.

Vacuum refrigerator coils

December

Maintain steps and handrails.

Check garbage disposal and kitchen sink drains