A shift in thinking may be all it takes...

The middle class play the money game not to lose. The rich play the money game to WIN!

What man can believe, he can conceive, and he can achieve.

Thoughts lead to feelings. Feelings lead to Action. Actions lead to results.

You will learn more from taking action now, than from anything else in life.

There is a difference in saving money and making money.

Would you agree with all these sayings? If so, you are on your way to tremendous wealth and success. If not, answer this honestly, "Are you broke?"

There is a common link amongst unrelated wealthy families. It's their thinking that is shifted different from most. Do you fear losing money so you try to save as much as possible? What is saving? Saving is deferred spending. Do you see? You will eventually spend what you save, and having a fear of losing money will only cause you to lose money every time.

Think of your thermostat at home. You set it to 72 degrees (comfortable). Someone opens a window on a cold rainy day, what happens? The home cools to 65. But, eventually the thermostat kicks on and warms the home to 72. On a hot day, another window is left open and the home heats to 80 degrees. Eventually the thermostat kicks on and cools the home to a comfortable 72 degrees.

Most middle class Americans will say, "I don't need to be rich, just comfortable.". So guess what, that's what they will be. Think about it. When you save money, you feel good. But, something always comes up that takes that money away, am I right? An unexpected expense, a broken water heater, a flat tire, or whatever, then you are only back to being comfortable. But what about when hard times hit? You were down and out and what happened? You bounced back and were once again comfortable.

So, why not be rich? What words are associated with rich and wealthy? Ever hear filthy rich? Of course you have. So your unconsious thinks money must be bad. MONEY IS GOOD. MONEY IS A NECCESITY. MONEY CAN RELIEVE STRESS AND ANXIETY. You may be shaking your fists at the screen now, but face it, do you need money?

Open a new internet window and go to your bank online. Print out your balance. Now, take some white out and change that balance dollar amount to what you REALLY WANT to have in that account.

Now add a zero at the end.

If you can make the small and subtle shift in your thinking, true wealth is just around the corner.

If I could show you how to replace your income from your 9-5 in 60-90 days so you didn't have to work anymore, would you? How would your life change in 90 days? Come on, dream a little. Close your eyes and think about it for just a minute. Let go of the, "Yeah, right, like that will happen" way of thinking.

Now, when you go to bed at night, think about it again, but bigger this time.

Remember a few more things;
Risk is only not educating ones self of the opportunity presented.

HOWEVER

Education without application will net you nothing.

Take action. You are comfortable right now. If you lose, you'll be comfortable again. But, if you play to win the game, you WILL WIN at the money game. And, most important, you will have had a life experience like no other.

Tune into the Straight Talk Real Estate show on Sunday's at 6pm PST at www.StraightTalkRE.com. Let us help you replace your income and become wealthy.

Investment Real Estate...Too Good to be True?

First and foremost, thank you to all our listeners of Straight Talk Real Estate, the education real estate investment radio show where we have opportunities available to be a real estate investor. I appreciation the strong support and valuable feedback from our listeners. If you haven't had a chance to listen, check it out on Sunday's at 6pm PST on KRLA AM 870 or on the web streaming live at www.StraightTalkRE.com

So, we presented an opportunity for a real estate investment on the show last night. By the way, all three properties look to have been reserved. But anyway, we ALWAYS get the one call that goes something like this..."How can you mislead so many people? Once you consider taxes, insurance, management fees, etc, there's NO WAY you can have positive cash flow!".

Did you look at the numbers? Did you do any research on your own? It completly amazes me how sceptical some folks can be, becuase we always get at least one when we present an opportunity.

The first question I ask them is this...Do you own an investment piece of real estate? Know what the answer has been in EVERY SINGLE SITUATION? The answer is always, NO. Conversation over.

Now, I'm not one to be rude, nor am I going to try and convince you that the opportunity is real becuase the mind is aleady closed to even hearing about it.

So, this opportunity was 10 to 20% down payment on a property that would give positive cash flow on a monthly basis, AFTER ALL EXPENSES. Yes, on an interest only loan, with 20% down, you get positive cash flow. More so, the builder is in trouble and has discounted the homes so you get $10,000 to $15,000 built in equity. Want more cash flow? Use an option arm to generate $443 of positive cash flow every month with 20% down. Not only are you making money when you buy (built in equity), you are making money every month (cash-flow), but the indicators are showing strong appreciation in this area so you can make money when you sell. The city recently removed building restrictions that have been in place for over 15 years, so 29 people have submitted plans for new developments. In addition, a community college is breaking ground, and two of the nations largest grocery store chains have purchased land to build on as well. All the indicators are pointing to a strong market in this area. Oh, and this area is within 15 minutes of two MAJOR metropolitan areas. Check this one out under hot properties at www.StraightTalkRE.com.

See, that's the thing, you can sit back and always think that an opportunity is too good to be true, someone is trying to scam you, continue miss each one and watch someone else start growing their wealth. OR, you can have a little trust in man kind and know there are actually folks in this world who want to help others and present opportunites. Do your due diligence and take a minute to run the numbers yourself.

I must admit, I was a skeptic at one time myself. And you know what...I was broke all the time. My credit was bad, and I didn't balance my checkbook becuase I was too embarased. Then, I changed my attitude and learned, got educated on how to analyze an investent opportunity. Come to find out, there were some I liked. So, I waited for one that I could afford and acted.

Next up, the difference between the thinking of the rich and the poor.

Thanks for your time, and again, thank you for your support of the show!

No Cost Loans, eh eh...

There is no such thing as a free loan! Want to debate? Check out page 9 of 38 in a publication called 'Using the services of a mortgage broker' at the California Department of Real Estate's website.

Yep, no such thing. So, I know if you've listened to Straight Talk Real Estate on the radio, you've heard other real estate radio shows. So, why do they continue to entice home owners with such crap?

Well, this is how it works. The higher the rate you take on a loan, the more your broker makes. Take a higher rate, they get paid more, and throw some of the costs back in to cover the closing costs. Remember, there's always third party fees for example, an appraiser, title, escrow, notary, etc. So, why would you take a higher rate?

If this is a VERY short term loan, maybe there's some validity in going this route. If closing costs are running $5000 for example and the higher rate only costs you $100 per month, then good if you are keeping the loan less the 50 months in this case. Consider you now pay more, and get a larger tax deduction. BUT...do you have $5000 in your pocket you are saving? Face it, it all gets tacked into the loan amount anyway in most cases.

What's the real draw and their selling point? "You'll refinance again in a few years anyway"...

WHY???

Allow us to shed some light and handle the last refinance you will ever need. With TRUE wealth building strategies you shouldn't ever need to refi again. Contact me and I will explain.

Picking the right broker could be rewarding...FINANCIALLY!

It's been a long time coming, this subject of picking the right broker, but I'm glad I've waited until now to share my thoughts on picking the right Mortgage Broker becuase of the rapid changing market.

First, let's define what a good lender should be doing for you. You can call around town, contacting bank after bank, shopping for the lowest rates, lowest fees, or whatever it is that will make you happy when getting a loan. But, is getting the lowest rate and fee the most important thing to you really? Are there other considerations that you should be thinking about?

A good lender should add value to your life. Yes, add value to your life. What kind of value? How about sharing other options that will enhance the way you live, transform the way you spend money, or fulfil your retirement. You choose a family Doctor based on the way they care for your family, correct? Do you ask what his or her fee is prior to going? I know insurance can carry a brunt of the payment, however, you ultimately pay through insurance premiums, but you don't even condsider asking do you?

Ask your next broker the following questions;

1) How many clients have you helped?
It really doesn't matter much if they've been in the business one month or a hundred years, have they helped more than a dozen home owners? I remember hitting the ten client mark, then fifty, then one hundred. By the time a broker has funded fifty loans, they have a good grasp of what's going on.

2) How much do you make and who pays you?
Just sit back quietly and listen to the response. It's not really the answer you are listening for, it the nature of the response. If they beat around the bush, and aren't straight up front, then move forward cautiously. There is no industry standard at what a lender should be making, however 1% to 2% of the loan amount is typical. Brokers are paid by borrowers when they pay points, by lenders in the form of a YSP (yield spread premium), or a combination of both. The YSP will be disclosed on the final closing statement you receive from escrow.

3) What will you do for me that the guy down the street can't or won't?
You want to find out what is it exactly that they can do for you. Is it in line with what you want them to do for you? Remember, your broker should add value, not just facilitate a loan, afterall, you can do that on your own.

4) Can you supply me with references or written testimonials?
Hmmmm...no one has ever asked me this, but they SHOULD! This is where you will get feed back from others, not close to you, to determine if this broker is honest, ethical, and generally a good person.

5) How long has your company been in business and how do you generate leads?
Why should you care about this? I'll tell you why. There are many fly by night telemarketing firms that generate leads from phone and mail solicitations. That's it. Their referral clients are typically low in nature and the amount of personal attention and care is limited. Generally if you call and ask the same question three times, you'll talk to three different people and get three different responses. As well, they usually employ hourly employees that are there to get a check. In addition, the length of time the company has been around is important. If they opened in the last five years, it's becuase the market was HOT and anyone could make a buck. Now, with times changing, only the strong will survive. Check that the company has been through a market cycle in the past. If your loan agent has only been around two years, that's OK, rest assured they have access to seasoned professionals in their office that are always sharing ideas and training.

My personal philosophy is, and was long before I got into the mortgage industry, go with someone who you can trust. Put your faith into someone who's credibility is on the line. Work with those who generate a commission and not a salary as they will work hard to make sure you are treated fairly and will value your referrals. Expect to pay a little more for the value add services and personal attention, and BE OK WITH IT! Think for a minute about Donald Trump or Robert Kiyosaki. Do you think they shop and shop and shop for the cheapest loan or cheapest CPA, or lowest cost attorney? Of course not. They go where the knowledge is and build a team. And not to mention, they pay a hansome fee.

If you have a comment on your last experience, good or bad, I'd love for you to comment and share with others. No names or company names please, just experiences. When we share good or bad, it will help someone else out. Remember the law of Reciprocity.

Have a GREAT week and check back soon...CHUCK

Check out the radio program website at www.StraigtTalkRE.com and Bruce Weide's Tax Free Blog at http://taxanalysis.blogspot.com.

Up Front Mortgage Brokers...Real or a Joke?

I've come across a website backed by a big name in the financial industry. The site is a list of mortgage brokers who claim to be upfront, honest, have a predetermined set price, and disclose everything to you up front.

Last time I checked, that's just about what the DRE (Department of Real Estate) require that all DRE licensed loan officers and broker do. So it it real, or just another marketing tactic?

By law, in California, when you make a loan application, you are to receive a Good Faith Estimate (GFE) within 3 days of making that application. The GFE should disclose, to the best of the lenders knowledge, all the fees associated with the transaction. Yes, ALL the fees. They should know the lender fees, after all they are the lender (although they may vary slightly if the broker finds a different lender to fund with than originally planned..I'll get back to that in a minute), escrow, title, appraisal, prepaid interest, taxes, insurance, recording fees, etc. So maybe the up front kind have agreed to be as accurate as possible on these fees. I'll give them that.

Then, I come across this little excerpt;
"1.Option arm: The rate is fixed for the first 1,3,5 or 7 years, but you can refinance before the fixed period is up. These loans are 100% free of charge. We pay the title, escrow, recording and all other fees on the loan. We cover all these costs buy using some of the rebate the lender pays us to save you money. This loan has a 3 year soft prepay ( you can refi with the same lender with no prepay and if you sell the house and use the same lender to buy your new house they refund the prepay). "

A few things that disturb me. Most home owners shouldn't take a 3 year prepay. There are cases, but most should not. The option arm comes in 1 month, 3 month, 1 year, 5 year, or 30 year fixed. There is NOT a three or seven year fixed option arm. I'm referencing the Fully Indexed Rate here, not the rate you pay for the minimum payment.

In addition, if the broker is making so much damn money to cover potentially $6,000 in fees, wouldn't you think if you pay those fees yourself, you could get a lower rate, therefore a lower payment, there by saving that $6000 in payment in no time at all?

These marketing niches really get to me. A good broker, doing their job, that has a slight care about their clients coming back to them in the future and building their business by referral will be up front. They will disclose according to the law, they will let you know if something changes, LONG BEFORE you get to the closing table.

Getting back to 'things change'. Yes, they sometimes do. We are required to redisclose if something changes for the worse on the loan program. If rates or fees are 'known' to have changed, you should be advised right away.

The next blog I must write will be on picking the right broker for you. There are several easy questions you can ask to determine if you are working with the right broker or not.

For now, I vote Joke, what about you?