Many of us have met at the Daily Grind on 419 in Roanoke for coffee, lunch, or fellowship and it’s become almost a home away from home for some. Countless relationships, ideas, and friendships have been forged at the very booth I’m sitting in as I write these thoughts.
If walls could talk…what would they say here? Would they talk about the frequent regulars like Heather Jacobson, John Lusher, Marty Martin, and Susan England? Or, would they tell about all of the creations that have come from these booths – like Project Give and other non-profit efforts? We’ll never know of many of the ideas, but rest assured they’re plentiful.
As I sit here observing, I see patrons visiting with each other. Some talking about the snow, some talking about their futures, some just being present, and a few truly diving deep into conversation as if no one else were here. Without Daily Grind, would any of this be happening? I suppose it would be taking place at Mill Mountain or MoJo Cafe, but there’s something special about this address. It’s not the coffee or the food, it’s the owners. On any given day, you can see Jeanie Patterson floating to engage with her “family”. Just ask. Most will tell you they come because of Jeanie. They come because they feel a part of their extended family, and rightfully so. Have a chat with Jeanie or Jim (husband) and both will admit their love for the people who occupy these seats and not for reasons you may think (profit, and such). They care because it’s in their DNA. Natural networkers, if you will.
So, should we be sad, full of remorse that our establishment is leaving? Nope.
The Staff (including Jeanie), is staying. And, let’s face it, we don’t come here for the coffee – we come here for the people. We come for the relationships. We’ll take a sabbatical for a few weeks, but then? Then…there’s this:
Word is…they’ll have FRESH tacos, nachos, salads, etc…and the best part? Margaritas. I can see Roanoke’s TwitterSphere going crazy for #MargaritaMondays already (I know you’re in @JohnLusher, I’ll probably be there too @joshperrington)…and let’s make that happen. Let’s pull together and support the efforts of Roanoke’s very own. Who better to initiate a recovery, than us.
As I wrap up, I realize this will be the last time I post from Daily Grind. The signs come down February 6th, but the memories remain for a lifetime.
It's becoming more and more common... “I have no idea what my parents/grandparents' finances are like”. I hear clients say this all the time and it's becoming alarming. Not because I think we should all pry into our family's financial business, but because we should know when our families need help.
Foreclosures are on the rise, and MANY of them are because elderly residents can no longer afford to pay the mortgage payment. Their income has dropped, expenses have risen, and it's caused them to either seek employment...or give up. Even worse, many of them don't realize that there truly is an option to help protect their homes AND give them income.
A Reverse Mortgage is absolutely one of the best retirement tools available. Why? Let's put it this way... Your home has been acting as a “forced savings account” for probably more than 15 years, when retired. I call it a “forced savings account” simply because every payment made is going directly towards paying the debt off and hopefully building equity...thus increasing your assets. Then, at the right time, you have the option to either sell the home & collect the equity...or, refinance to pull the equity out. Aside from selling the home, the ONLY way to tap into the equity is to refinance. Yet, if we are talking about our family members, who are in financial distress, being the ones to refinance – often times it will not help because they likely will not qualify for a traditional refinance in today's environment.
So, what's the solution? Enter: Reverse Mortgage
When a homeowner (Grandparent, Parent, etc) turns the age of 62 they now have an option not available to the rest of America. A Reverse Mortgage. This Reverse Mortgage provides an opportunity for the homeowner to defer making physical payments on their mortgage all while retaining ownership – provided they have enough equity. No credit score required and no income qualification needed. If there is equity in the home AND the homeowner is 62 years of age or older, odds are they will qualify.
Here's an example:
Esther is a Grandparent, age 75, widowed and has a mortgage payment of $650 per month. Assuming that she has enough equity, she would likely qualify...resulting in the elimination of her monthly requirement to make a payment (saving $650 per month) AND have the option to draw additional “income” from the property.
Esther's been retired for 20 years, in order for her to supplement the $650/mo she would have to normally obtain a part-time job – probably making $8/hr. That's roughly 97 hours of work every month (after taxes). Not exactly our retirement dream. Or, she can use a Reverse Mortgage to supplement the income and continue living her life to the fullest.
Take time today – please don't look at it as prying – ask your Parents & Grandparents what their financial life is currently like. Ask them if it would help if their mortgage payment were eliminated all why keeping the property & retaining full ownership rights just as they have now.
When I reach retirement age, I can only hope that my 2 daughters will care enough to “pry” into Kellie & I's financial life... I know many Grandparents that have been forced to sell as a result of our economy, I wish we would have been able to talk sooner.
There have been few times in my life that I can undoubtedly pinpoint that there was/is another force...a higher force...working. Some call it God, some call it the Universe, some call it coincidence... But, I would not chalk James up to coincidence.
We were finishing up a tour of our local SWVA 2nd Harvest Food Bank and were lingering in the Salvage Dept. This is where, amazingly enough, 1 Million pounds of food – not regular food mind you..dented cans, crushed boxes of cereal, etc...that the Stores won't sell - filters to area Rescue Missions, Shelters, & Churches to give to our neighbors on the streets. It was here that we met James. The short, stocky, black/brown/”darker than I am” male about 20yrs my Senior walks up in his sweat suit to greet us. Immediately, we could feel his enthusiasm... He started sharing the stories of his volunteers, showing us pictures of them on his wall, thousands every year...
It's not often that we meet people that actually have a love for their job is it? These people would do their work for free – no paycheck, if they could survive. James looked at us with his gleaming eyes & extended hand saying... “I know you'll be back. I can tell by that smile on your face that something's pulling you back – that God's working in you.”
As we were leaving he said something profound...something that maybe only I was dialed in to - because I needed it. James said “You have to have Passion...or it's not going to work”. Those words rang so true, as if someone had prescribed them. Of course I heard/read it before...but this was different. And to think, I was on the verge of canceling on the tour...that I was going to head back to the office early...
Those closest to me know that I'm passionate, but sometimes it's great to be reminded by strangers the exact importance of that emotion. We've all been created with certain gifts, strengths, ideas, and wisdom...yet few are actually using them. Few are working daily in their “zone”. That same zone that allows us to work until 3am on projects without complaining, waking in the morning to start again feeling refreshed...because you are serving your purpose.
Are you Passionate about your work...not your job, your work? If not, maybe it's time for a little self evaluation... Picture yourself 90 yrs old looking back on your life. How do you want to remember it? Some call it Divine Intervention, some call it coincidence...nevertheless...thank you James, for salvaging more than just food today.
We all go through it... Why am I here? There's Got to be Something Better? If Only I were able to help? This has been stirring inside me for some time now... Gary Vaynerchuk says it well in his new book Crush It! when he stated that no one else has your DNA. No one else has the same passions that you, or I, do. No one else will pay attention and react to the same things that grabs our attention.
It's been in my DNA for some time now to stop warming the bench & start diving right in to the world of Non-Profits & Philanthropy. Call me crazy, but I love watching these organizations step outside their comfort zones of mass-mailings and donation requests in order to reach an entirely different audience...an audience that's growing. An audience that cares more about making a difference than they do about a tax write-off.
Take Mark Horvath (@hardlynormal) - this guy is the epitome of making things happen. Homeless himself, he decided to push against the normal avenues of generating support and truly take matters into his own hands by bringing the homeless crisis directly to you & I. He created InvisiblePeople.tv which tells the stories 1st-hand of our neighbors on the streets.
There's a movement happening... People are taking notice. Responding in droves.
I'm looking forward to facilitating...and extremely optimistic about what lies around the corner.
The time has never been greater for us to pull together & help our communities! I've started a new Active Rain Group called: Philanthropy in hopes that we may all share stories, successes, ideas, & most of all real-world needs that maybe some of our sources/friends can help with.
Please join me in not just making headlines, but making a difference.
Here's the link: http://activerain.com/groups/philanthropy
Until next time! - Josh
PS: PLEASE pass along to your friends, co-workers, relatives... More exposure = faster response.
Josh Perrington
joshperrington.com | @joshperrington | jperrington [at] gmail [dot] com
Seth has been kind enough to share his latest creation with us...for free! The best part, this time free really means free. No email addresses, names, subscriptions required. Feel welcome to view & read below, or simply download for yourself - enjoy!
A Reverse Mortgage can prevent foreclosure. In today's economical environment it truly breaks my heart to see homes being foreclosed upon that could have easily been prevented. Even if there are a few late payments on the recent mortgage history, a Reverse will often times come to the rescue. Just recently we learned of a couple who lived in their home for more than 15 years and were on a fixed income – not providing enough money each month to stay current on the mortgage payment and energy costs. There home was foreclosed and they are now 70+ years old renting an apartment. Their home, where their family memories occurred for so many years, where they felt secure, where the family gather for holidays...now gone. If they would have know prior, a Reverse Mortgage would have saved them & actually provided for additional “income” every month.
Your money is provided tax free. Just like a traditional refinance, any sum of money that is distributed to you from the equity already in the home is non-taxable. Many Seniors these days are withdrawing the equity in their current homes & gifting large sums to living relatives. You will surely want to consult with an reputable Tax Planner, but ofter times this is a much smarter approach to providing for loved ones when the Senior has passed on. If we were to all wait until we passed away in order for our children & grand children to benefit from our estates, often times our descendants would receive only a portion of what was intended...simply because estate tax would consume much of the proceeds. So the morale – give now.
Did you know that you will be allowed to keep your home? It's true. Think of a regular (forward) mortgage. When you refinance with a regular mortgage, the home is still titled in your name as is also the case with a Reverse Mortgage. A very common misconception is that the home will now be owned by the government and they will have all rights to sell, etc... Completely false. Reverse Mortgages have come a long way. When they were first introduced, they had many restrictions that are not present today.
Our Seniors are suffering and many times do not know where to look for local help. The nationalized Television Ads are always on, but seem to never offer a personal representative. Make it a point this holiday season to truly take an interest in the financial health of the Senior in your life.
As always, we're here to be a resource for you.
Josh Perrington | Regional Branch Manager | Village Bank Mortgage
Office: 540.904.0842 | 2762 Electric Rd Suite E Roanoke, VA 24018
So I walk into my "Big Nationalized Bank" to make a deposit yesterday... And, there, on a big lofty bulletin board they are advertizing their rates for all to see. So, I decided to put a few arguments to rest by taking an actual picture of their board...showing the rates.
Why would I do this? Simply put, bigger is not always better. Village Bank Mortgage is positioned in such a way to truly take advantage of "Broker" rate programs...yet have all the efficiencies of a true underwriting machine (AKA: We're fast!)
Let's compare apples to apples:
Loan Amount: $200,000
Credit: 720+
Downpayment: 20%
Loan Structure: 30 YR FIXED
These are the same assumptions most banks use when "quoting" rates to potential borrowers...because it's best case.
This particular Bank is charging 1.75% in Points ($3,500 on a $200k loan) & their APR is 5.355. All things considered, Village Bank Mortgage's rate structure @ 3pm in the afternoon on Oct 15th would look like this:
30 YR FIXED @ 5.125% (5.205% APR) would only require .50 in Points. That's a DIRECT savings to our clients of $2,500!
That's real savings in a market when everyone needs real relief.
Sorry for the short post, but I just wanted to get this out there. I'll explain more (very soon) concerning every other aspect of why "bigger is not always better" as it relates to mortgage companies...
If you’re reading this, your probably in one of the following stages in your life: Either you currently own a home & want to renovate, you’re thinking of buying a “fixer upper” as your home, you want to sell your house & buy a home that needs a little work, or your home is on the market, but it just won’t sell!
1st things 1st, let’s start by asking:
“What makes a Renovation Loan (FHA 203k) different from a Traditional mortgage?”
A “Traditional Mortgage” is one that the lender only approves based on the current value & condition of the property. If you find a home (foreclosure) that might truly be worth $300,000, but have arranged for a purchase at $210,000 (great deal btw!) the traditional lender will only lend up to the $210,000 your contract price. Now, say it’s not a necessary fix, but you want to upgrade the kitchen & add new windows. Even though there is already equity in the property, with a Traditional mortgage you would have to pay for the upgrades with your own money. Common sense may scream “There’s $90,000 worth of equity in the property, why can’t I just include it in the loan?!?!” The traditional lender doesn’t care…your contract price = the max loan amount.
Here’s the great part…using the same purchase scenario as above, a Renovation Loan (FHA 203k) WILL allow you to make all of the upgrades AND include them in your loan. A FHA 203k Renovation loan lends based on the AFTER-IMPROVED market value of your upgrades/renovation…not the current value. This changes the game completely!!!Instead of having to bring an extra $40,000 to closing (assuming that’s what the kitchen & windows cost), now it’s included in the loan and you keep your money in the bank! Let’s talk about a few more real world examples…
I own a home, but want to renovate…
Maybe you’ve been watching a lot of ABC’s “Home Extreme Makeover” and want to turn that old 70’s kitchen into the new bright, shining, stunning kitchen of 2008. You want to knock a few walls down, replace the flooring with hardwood, new appliances, granite countertops, etc… You have primarily two options. If you already have enough equity in the home, you can simply do what’s called a “Cash Out refinance” – which means we refinance the current mortgage and pull enough cash out to pay for the projected renovation…that simple. But, what if you don’t have enough equity in the property to pay for the renovation? That’s where the FHA 203k comes in… Say your home is currently worth $200,000 and you owe $190,000. You only have $10,000 worth of equity ($200k – $190k) which is not nearly enough to cover the projected $50,000 (example) cost of renovating. But, say the improvements will cause your home’s value to skyrocket to $270,000 once they’re complete, versus the current value of $200,000. We would lend on the AFTER-IMPROVED value and simply include the cost of renovation with your current mortgage balance for a total loan amount of $240,000 (original balance of $190k + $50k improvements)…and now instead of having $10,000 of equity…you have $30,000 (new value of $270k – new mortgage of $240k)!!
My home’s on the market, but it just won’t sell…
Often times, when prospective buyers are walking through “Open Houses” or visiting potential new homes they are stalled by the blemishes or older characteristics…even though the property may be wonderful for them. It’s difficult for them to maybe see the true potential simply because the windows need to be replaced, or the HVAC system is old, maybe the plumbing needs updated, or even the roof needs replaced – but the current seller may not have the funds needed to make those improvement prior to selling.
Think about your home through the eyes of a new buyer… Are there traits that may need to be updated? If so, have your Realtor partner with an FHA 203k Renovation expert to draft a glimpse of what the property could be like AFTER the improvements, that a prospective buyer may want, are complete. Show them the pot of gold at the end of the rainbow! Educate the buyers that their improvements CAN be included now in their purchase! YOU WOULD BE AMAZED AT HOW MANY REALTORS DO NOT KNOW THIS OPTION EXISTS!!!
I’m thinking of buying a “fixer-upper”…
Just as we talked about above, this is a great option! With a traditional mortgage, you would have to pay for any of the improvements with cash out-of-pocket in order to buy a property that needed some TLC.
Now, instead of using out-of-pocket cash to make the improvements, use the Renovation Loan to purchase & allow the equity to work for you!
What can the FHA 203k Renovation Loan be used for?
There is a LONG list of eligible improvements allowed for the 203k. Pretty much, the only things that wouldn’t be allowed are luxury items that can’t be included as a permanent piece of the property (i.e. 60” Plasma TV’s, etc…). But, here are a few that can be included:
Bathroom remodels
New Siding
Attic build-outs
Adding a 2nd floor
Granite countertops
Bedroom Remodels
Upgrading HVAC
Going GREEN! (Solar panels, energy efficient appliances, etc…)
Many, Many, Many MORE!!!!
Now, What’s the Loan Process Like?
Apply for Pre-Approval!!!! I honestly can not stress this step enough. I’ve seen it many times…couples get excited about renovating, they’ve designed the kitchen, picked out the appliances, selected the contractor…only to then find out they can not be approved. Granted, the requirements are less stringent than a conventional mortgage…but that does not mean everyone will be approved. So please, do yourself a favor & talk with a 203k Mortgage Planner first…plus…I like joining in on the fun of watching you go through the designing process…
Here’s what needs to happen (preferably in this order):
Call me or email me & we’ll take care of your Pre-Approval
On-site consultation with Appraiser, Contractor, & Mortgage Planner
The process for qualification, approval, and fund disbursement is really quite easy on your part. If you look at the process through the eyes of the lender, it becomes more of a common sense approach than anything else. If you were the lender and planning to give money to a family, you would want to know that someone in that family has a stable job, has shown their ability to pay loans in the past, and has enough resources currently to stay on time with their payments. That’s it! Obviously, there are a few other small items that would need to be addressed, but leave that to us…
Wrapping up…
This loan absolutely has the potential to create personal wealth and a huge amount of equity from day one. Even more significant, it gives a sense of hope & renewal to families in an economic environment that does not foster such characteristics at the moment. I’m passionate about helping others turn the house they have…into the home they want!
Feel free to call or email us anytime with questions…we’re here to help.
It took all of about 30 seconds to become addicted to reading friends’ status updates. Not something I’m proud of, mind you…yet, lately, has proven to be not-so-unusual…and facebook knows this.
Aside from rummaging through friends’ photos like you’re spying on them from the outside, status updates provide a glimpse into the “Jone’s” lifestyle…which hike they went on this weekend, who’s house they watched the Hokies game at, where they took their kids for their birthday party, what they ate for breakfast, etc… We’ve all seen them, but now the game has changed!
Facebook recently announced its newest capability – which now enables tagging of status updates for Friends, Pages, Events & Groups. Many of my friends have been asking “Why is that so important…seriously, who cares?”. Answer: we ALL should care, and here’s why:
Facebook has become famous for its ability to allow photo tagging of friends, causing an extreme viral effect. We’ve all experienced it. We try to maintain semi-professional facebook page, while Timmy (the friend you haven’t seen in 20 years) thinks it’s hilarious to tag you & post a photo he generated from yearbookyourself.com to your page. Meanwhile, every single one of your coworkers, clients, and friends have all seen it before you have a chance to untag…been there, done that.
Now, though, facebook hastaken it up a notch (a giant one, at that). Riding Twitter’s coattails by copying the already popular “@” Mentions style, will prove to pay off. This is fantastic for businesses & nonprofits who have already embraced Social Media Platforms as a way of attracting & engaging customers/supporters. Fantastic b/c it has unlimited potential for creating massive amounts of buzz…whether good or bad.
Example #1: I go to Debbie's Cakes & have her make a SpongeBob Squarepants cake for my daughters and she does a great job. I might post something like “Just picked up the SpongeBob cake for my daughters…WOW! Not only was she just as good as Ace of Cakes…she was drastically cheaper!”
or…
Example #2: Maybe I go to a local restaurant & receive not only the worst service, but also something…other than what I ordered in the food. The viral effect could be MUCH worse. “Seriously “local restaurant”? A roach in our spaghetti?!?! – never again eating there!”
Either example creates an instant viral tsunami that’s virtually uncontrollable. Just think…if you have 300 facebook friends who just saw either update & 20 of them decided to repost & tag? That’s a possible 4,300 sets of viewing eyes! (Assuming each of the “reposting” 20 friends have at least 200 friends each. (20 * 200 = 4,000. 4,000 + 300 original viewers = 4,300) Viral in it’s purest form!
The wording doesn’t change, but the effects do. It used to be (just last week) that someone would post a positive, or negative, update and we would all just read the name and move on…sometimes throwing in our 2 cents. Now, by tagging, we can just click on@MichaelHyatt and put a face to the name instantly. Thus, aiding in brand creation for that person, company, group, or non-profit…whether they want it or not.
Plus…it’s crazy simple. Facebook has done all the work for you. In your “What’s on your mind” box, type the “@” symbol and directly after – start typing a friends name. In the pic below, I’m typing that I just finished coffee with Ryan Salvi and his name starts to auto-populate.
Here, feel free to try: Go to your status update box and type “Just read a great blog about facebook changing the game…thanks @joshperrington!” - then post, that simple. You’ll love it…
As we’ve all heard “May the force be with you”…this new facebook tool is not to be taken lightly. As always, the power’s all yours…just use it wisely.
Disclaimer:@MichaelHyatt is an amazing individual & was merely used for purposes of explaining the example!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Esther is a Grandparent, age 75, widowed and has a mortgage payment of $650 per month. Assuming that she has enough equity, she would likely qualify...resulting in the elimination of her monthly requirement to make a payment (
attention.
shining, stunning kitchen of 2008. You want to knock a few walls down, replace the flooring with hardwood, new appliances, granite countertops, etc… You have primarily two options. If you already have enough equity in the home, you can simply do what’s called a “Cash Out refinance” – which means we refinance the current mortgage and pull enough cash out to pay for the projected renovation…that simple. But, what if you don’t have enough equity in the property to pay for the renovation? That’s where the FHA 203k comes in… Say your home is currently worth $200,000 and you owe $190,000. You only have $10,000 worth of equity ($200k – $190k) which is not nearly enough to cover the projected $50,000 (example) cost of renovating. But, say the improvements will cause your home’s value to skyrocket to $270,000 once they’re complete, versus the current value of $200,000. 
Just as we talked about above, this is a great option! With a traditional mortgage, you would have to pay for any of the improvements with cash out-of-pocket in order to buy a property that needed some TLC.
;)
;)
