Ashlar Undressed

What to write about today?

When writing a blog some-days I am not sure what to write about. There is a lot of bad financial news out the last couple weeks, but if you want that go watch the news. There is the election coming and that is an interesting race to the White House. I am not sure what to comment about because one day there are facts and the next day they weren’t exactly the truth. Then something else comes out with no validity… Who do you believe?

I love talking about family and my children. I think that is a pleasant topic for today. A friend of mine brought me down to the Columbia Tower Club for lunch today. Ken Wehl, the regional representative for the Bulova Watch Company, invited me down and he needed an hour to get caught up on some work. What better place to hang out and write the blog.

Well the kids started their first week of soccer last Saturday. Can you believe it? A 2 1/2 year old going to soccer training for 9 weeks? There are some parents that push their children to do too much. I feel Fyn was ready to go out and kick the ball non-competitively with other 2-3 year olds. It worked out well cleats, shinguard, and all. It is a program called Kids Love Soccer. The coach is Ian and he is great. Fyn had a great time.

Now Jax also started Kids love soccer last Saturday. He is 4″ taller then the next tallest kid. He is a rambler and maybe rugby is a better sport for him. He too had a great time and looks forward to playing in the mud. I told some of the other parents, don’t let you kid get in the way;)

Soccer is here and it is a great time to catch a youth game.

District 4 traveling gavel

It looks like the district 4 traveling gavel is up for grabs tonight at Greenwood Lodge. Greenwood meets tonight, 6:30PM dinner, 7:30PM meeting.

The traveling gavel is for district 4. The lodge which shows up with the most members gets to take it. You must have at least 5 members and 1 officer. I have heard some rumors that Doric Lodge #92 F&AM is making a move for the gavel tonight. You never know who might show up.

Snohomish County Economic Development Council

Today I attended the Snohomish County Economic Development Council luncheon that was sponsored by Old Republic Title. The EDC is a non-profit group that attracts business and people to Snohomish County. The attraction of business and people makes Snohomish County a better place to live.

The speaker talked about many topics of interest: a commercial airport? a four year university? highway improvements? Boeing and Aerospace? and the new business’s they are trying to attract to Snohomish County?

Some interesting numbers for the county: Aerospace employment went from 22,144 jobs in 2003 to 33,300 jobs in 2007. Aerospace accounts for 25% of all the jobs in Snohomish County and 40% of the wages. From 2006 - 2007 Snohomish County had a 9% job growth adding $505 million dollars to the community.

A note on Boeing…. from 2008 - 2027 there is a $3.2 Trillion market potential for new planes.

Here are some general statistics for Snohomish County…

Seahawks finally win a game this season!

This last weekend the Seahawks won their first game of the season. Unfortunately I missed the game, but my great friends and brothers from St. John’s Lodge sent me a pic of the fun time they were having. The friendships that are made in Lodge are priceless. They say a picture is worth a thousand words….

Investor Alert!

I wrote an article about short sales and then a real estate friend of mine (and reader of the ashlar undressed blog) called me with a deal. A deal is something that makes sense to buy with the prospect of making a profit.

One of the things to look for when buying an investment property in a short sale situation is a large 2nd mortgage. Today mortgage companies in 2nd position are taking between $1,000 and $3,000, regardless of the amount owed on the 2nd. Really the 1st mortgage simply tells the 2nd what to do.

This morning my friend sent over a house that has a $145k 2nd with a $160k first. This means that at one time a lending institution valued the homes at a minimum of $300,000. If the 2nd mortgage were to take $3,000 and the first was paid 90% (which they would likely take) and investor could pick the house in the $150,000 range.

Please note that the entire transaction depends on the decision of the bank. Working with professional bank negotiators is critical to making this transaction work for the investor. I know the house and it would yield between $1,100 and $1,300 a month in rent.

Good Investment? What are your thoughts?

How does Seattle rank?

Travel + Leisure Magazine just ranked 25 cities in the United States. Seattle gets number one in a few categories.

Seattle ranks #1 for Intelligent People

Seattle ranks #1 for Summer Vacation

Seattle ranks #1 for Farmer’s and Specialty Food Markets

Seattle ranks #1 Cafes and Coffee Bars

Seattle ranks #2 in Environmental Awareness

But, Seattle ranks #23 for weather

This is a  fun survey that lets us know we live in a great part of the country. Remember that when someone asks how the weather is always tell them you can’t stand it and it always rains. Otherwise we will have a terrible traffic problem…

Hope brokers?

There has been a lot of talk about Hope. As I listen to the news anchors and politicians, they are selling Hope. The salesman that has the latest and greatest solution to the business is selling Hope. There is a lot of people “selling” Hope. When did they become the “hope brokers” of the world? 

When Pandora opened Pandora’s Box, she let out all the evils except one: hope. The Greeks considered hope to be as dangerous as the entire world’s evil. But, eventually Pandora let out hope otherwise humanity was filled with despair.

Emily Dickinson wrote “Hope is a thing with feathers… That perches in the soul…”

Simply put, Hope is a belief in a positive outcome related to events and circumstances in one’s life. In lodge we talk about Faith, Hope, & Charity. It is taken from Catholic Theology more specifically Corinthians. With Faith and Hope we become more charitable. We give more to the less fortunate because we know we live a life of plenty. The combination of Faith and Hope remind us of that.

Is hope what keeps everyone moving forward? The reason I ask this is the message from the politicians and the salesmen is, “work with me and I will give you hope”. Where did they get all the hope to sell? Do you vote for someone based on hope? Do you buy a product based on hope? Maybe Yes? 

When does hope turn to false hope, where all your hope is based around fantasy. Maybe that is what the politicians are dishing out, false hope and fantasy.

The election is nearing and I’m not buying the “Hope” line (I don’t buy it from the salesman either). I think we need a new commander in chief that is based on substance. A leader that leads with the ends in mind.

I remember a president a number of years back that came into office during a pretty good time in American history. I talk with friends about his presidency and their criticism is that he didn’t do anything when he arrived in Washington. My comment is that was the best thing about him.  

Remember to vote, that is what makes the system work.

The short sale, for investors

Short sales today are on the rise and there are more coming. This creates an opportunity for investors to help a homeowner out of their situation and make some money. But, you need to be careful who you hire to work for you.

The first clue that someone is not familiar with short sales or just not being truthful is the statement “cash buyers we close in 5-7 days”. The banks have so many files there is no way to negotiate and settle in that amount of time. It takes 3-5 months, regardless of where the money is coming from. The banks need time to evaluate the situation and make the decision. This is why many experienced agents believe that a short sale purchase is not appropriate for a first time home buyer. To buy a home that is a short sale takes patience.

There are characteristics to a good short sale purchase. Many investors feel they should take every short sale that comes along. That is not true. The investor should only take the good deals that makes them money.

There are five characteristics that make a good investment deal. Any one of these should get your investor mind thinking. 1) Large 2nd mortgage, 2) an absentee owner (out of state), 3) title issues, liens, judgements, etc… 4) Million Dollar homes. These factors make for an investment that is more probable of large profit.

There are also some things to avoid. 1) no 1 or 2 bedrooms, no mobile homes, 2) Homes on the lowest end of the market, 3) The largest home in the neighborhood, overbuilt, 4) areas of mass depreciation. Avoid these things, there are too many factors that will obstruct your cash.

You also need a real estate agent that knows how to package the deal for the bank. Everything up front and in the correct stacking order. It is also a great idea to use a real estate agent that will give up some of his/her commission to work with a professional bank negotiator. These negotiators assist in the transaction helping it move faster and they usually get the buyer a better price. Negotiators know what some banks will take and what others won’t. Most importantly they know WHO to talk to at the different lending institutions.

If you would like more information about purchasing investment real estate through a short sale, give me a call (206) 391-6224 or email me at boe@ashlarrealty.com

A new mortgage product

 I have been a loan officer (in addition to a real estate broker) for the last seven years. I was the guy everyone would ask when they didn’t know where to take a loan. There were over 200 lenders and many different products. About a week ago someone asked me to write about the new products that I run across. I can’t guarantee they are “brand new” (last seven days), but they are new to me.

The new product I was introduced to last Friday was an FHA Energy Efficiency Loan. This is a great tool for a first time home-buyer, and something that real estate professionals should know about to offer their buyers.

It is a 97% LTV (loan to value) meaning the buyer needs to bring in just 3% to buy the home. They uniqueness of this loan is that FHA will loan you another $8,000 to do energy efficient upgrades. Some examples: vinyl windows, efficient furnace, install insulation, etc… The $8,000 is held in an escrow account and is there when the homeowner wants to do upgrades.

Personally I think this is a great government program, and that is something you don’t hear often. With the added demands on energy, and the high cost, this is a program that makes sense for almost all home-buyers. In most cases they savings are instant.

If you or someone you know is looking to buy, send them my way and I can answer all of their questions (or find the answer). I am a loan officer for Hometown Lending.

On another note… I received some calls asking where you can get a 1010 burger? Well, its Frasier’s Sports Bar & Grill located at 1010 N Broadway, Everett. Thanks for the calls!

An amazing hamburger

Well I was out the other day and saw an amazing hamburger. It is called a 10-10, ten patties & ten slices of cheese for $10.10. It was such a site I took a picture and I figured it was worth sharing. Email me and I will tell you where I was…