The Kim Group

Tenants, Landlords Could Face Dramatic Changes from New Lease Accounting Rules

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 08 Sep 2010 13:37:08 -0400

Changes in International Accounting Standards Could Transfer Up to $1.3 Trillion onto US Balance Sheets and Discourage Companies from signing longer leases.

Northrop Grumman Corp.'s decision in July to relocate its corporate headquarters from Los Angeles to a 14-story, 334,385-square-foot building it acquired in Falls Church, VA, was a huge economic development victory for Fairfax County and the state of Virginia. But the defense contractor's decision to buy rather than lease its headquarters building at 2980 Fairview Park Drive has also drawn renewed attention to a major international proposal that could effectively end off-balance-sheet treatment of leases.

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) on Aug. 17 released their long-awaited "exposure draft." The two accounting authorities have proposed requiring companies to record nearly all leases on their balance sheets as a "right of use" asset, and as a corresponding "future lease payment" liability. In a joint statement, the IASB and FASB said the proposals will greatly improve the information available to investors about the financial impact of lease contracts.

Under current International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles (GAAP) guidelines, accounting treatment of real estate, office equipment or other leased assets differs depending on how the lease is classified. "Capital" or "finance" leases are accounted for as a sale and included on the lessee's financial statement. Contracts classified as "operating" leases, however, aren't recorded as assets or liabilities on a lessee's balance sheet. If adopted, the new accounting rules would require almost all leases to be capitalized on a firm's balance sheet.

The boards will accept public comment on the exposure draft through Dec. 15. If the IASB/FASB makes a final decision next year, the new rules will go into effect in 2013. According to some industry estimates, about 70% of the up to $1.3 trillion that would be transferred to U.S. corporate balance sheets under the new guidelines would be real estate leases.

Commercial real estate industry analysts say the proposed rules would have a profound and mostly negative impact on commercial tenants and landlords, with a steep learning curve amid the challenges for their brokers and other service providers. Many believe they will dramatically increase the complexity of lease arrangements and create a powerful incentive for tenants to sign shorter-term leases, while making it more difficult for owners to achieve the long-term leases favored or required by lenders and investors. It would also lead to more companies deciding to own their buildings instead of leasing them.

Mindy Berman, managing director of capital markets for Jones Lang LaSalle, tells CoStar that adoption of the new rules, as proposed, "would result in a huge change in leasing behavior."

"The leasing premium will be really diminished, especially for single-tenant buildings," Berman said. "Given the enormous administrative burden and the complexity of financial reporting that will result, single tenants will be asking the question, 'if it's going to be on my books anyway, shouldn't I own it?'"

Northrop Grumman said yes. Following a lengthy search, the defense and aerospace company announced it would purchase its future headquarters building in Virginia after two decades of occupying leased space in Century City, CA. That set off a round of industry speculation over whether other companies will follow suit in light of the new standards. Gaston Kent, a vice president of finance with Northrop Grumman, told The Wall Street Journal in July that buying the building "just made more sense in light of the [leasing] rules."

Under the proposed rules, tenants would have to capitalize the present value of virtually all "likely" lease obligations on balance sheets. FASB and IASB view leasing essentially as a form of financing in which the landlord is lending a capital asset to the tenant, who in exchange agrees to pay high interest costs up front, much like a mortgage.

Tenants would have to estimate their expected payments for contingent rents such as rates or escalations triggered by changes in a retailer's sales or the consumer price index (CPI). Tenants also would have to project the probability that they might exercise a renewal or termination option and re-assess lease terms and payments each reporting period.

"If you have to report all your future leases as a current liability, that's going to cause tenants to want to shorten their leases. And the problem with shorter leases is that it's harder to finance properties with long-term money," said Norm Miller, vice president of analytics for CoStar Group. "It's hard for an owner to ask a life insurance company for a 10-year loan when all your leases are three years. It's messy trying to estimate lease terms and payments; like trying to forecast the interest rate on a variable rate loan."

The proposed accounting rule changes could also affect lease renewal strategies. While retailers in prime locations likely won't want to forfeit renewal rights, office tenants may opt out of including renewal options in their lease contracts in order to avoid going through the complicated exercise of estimating their lease terms and rent payments, Berman said.

The accounting boards appear to believe that if leases are transferred to balance sheets, virtually all companies would choose to own rather than pay rent, Berman said. In fact, the word "rent" will not appear on financial statements.

Companies in buildings with multiple tenants such as downtown offices, however, often don't want to own their space. Technology, professional services and other companies that emphasize human capital want the flexibility to scale up and scale down according to their level of business activity, Berman said.

"Regulators have missed the point about why companies lease, which is about maintaining occupancy flexibility in location, size and duration, and deploying corporate capital into their business rather than into real estate," Berman said. "In the U.S., we don't have an orientation toward condominium ownership interest because we've got robust capital markets that make real estate relatively accessible compared to other countries."

The proposed standards will affect landlords as well, especially public entities with audited financial statements like real estate investment trusts (REITs). Major mall owners and other trusts will be required to go through the same analysis with every tenant in each of their buildings or malls, evaluating their likely terms of occupancy and contingent rental rates, Berman noted.

"Tenants are really going to get crushed in their overall expense load because they're going to go from a straight-line rent today, to a pattern where expenses run high early in the lease term to low at the end, crossing over at roughly the midway point," she said. "On a 10-year lease, our estimate is that the expense a company will show from real estate is about 20% higher than today."

For example, a retailer with a 5% profit margin whose rent is 6% to 8% of their total expenses will see its expense load increase by 25% to 30% in the early years of a lease, increasing their rental expense to between 7.5% and 10% of total revenues. At a time when retailers are just beginning to recover from the recession, that cuts as much as 2% from that already slender 5% profit margin, Berman said.

The new rules would require companies to constantly re-evaluate their use of space and their lease payment and adjust the initial estimate, and then re-amortize the asset based on the adjustment. One positive impact is that the new standards will force companies to re-evaluate the business case for why they lease versus own, and the changes will prompt communication between an enterprise's accounting and business units.

"There will be a lot of noise about this, but at the end of the day it will come down to an economic negotiation between two commercial parties," Berman said. "They'll probably wind up in the same place as today. But there will be a tug of war, at least until everyone gets used to the new paradigm."

With the changes likely to take effect in 2013, many companies are already beginning to negotiate leases that will commence at that time, and CRE professionals must learn and prepare now, Berman said. "The best thing that landlords, tenants and the brokerage community can do now is become familiar with these standards," she said. "Any prudent tenant should be factoring the change into their decision making today."

To view original article, please go to: http://www.costar.com/News/Article.aspx?id=2AF112FB05822C38AEBF3010DEAA60FF

New Addition to The Kim Group

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 08 Sep 2010 11:04:22 -0400

Sorry for being a little MIA on the blog front. We had a new addition to The Kim Group on July 4th ~ Aidan John was born. We just love him! He is learning the ropes very quickly.

What would it take for you to move to downtown Peoria?

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Mon, 28 Jun 2010 20:42:13 -0400

With a lot of incentives being put in place for developers to start developing out the Peoria river front, I am constantly being asked "What do you think it will take for people to move downtown?" I know my answer, but I would LOVE to hear yours!

Be completely honest!

Thank you in advance for your time!

Katie Kim
Small Business Specialist

The Kim Group
www.TheKimGroup.com

(309) 208-2898

Down Payment Assistance Program Re-OPENED!

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Tue, 19 Jan 2010 14:41:39 -0500

The City of Peoria, through its Department of Planning and Growth Management, has re-opened the Down Payment Assistance (DPA) Program as of Tuesday, January 19, 2010. The DPA Program provides up to 20% of the purchase price of a property, with a maximum amount of $10,000, to income-eligible homeowners. The Program is available Citywide to first-time homeowners. Special priority and emphasis is given to the Glen Oak School Neighborhood Impact Zone for non first-time homebuyers who purchase within the Zone.

With the funds available, City staff will accept a total of 15 applications on a first come, first served basis.

Applications and Program Guidelines can be obtained from the Department of Planning and Growth Management (PGM) or at http://www.ci.peoria.il.us/planningforms. Any individual interested in applying or would like additional information should contact Nicole Frederick, Grants Coordinator at 494-8606 or nfrederick@ci.peoria.il.us.

2010 US Census Cautions to avoid Fraud and Identity Theft

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 09 Sep 2009 09:27:11 -0400

With the US Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 US Census is under way as workers have begun verifying the addresses of households across the country.

Eventually more than 140,000 US Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data. The big question is - how do you tell the different between a US Census worker and a con artist? BBB offers the following advice:

A. If a US Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home. You don't have to invite the Census take into your house either.

B. Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the US Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail or in person at home. However, they will not contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the US Census Bureau.

For more advice on avoiding identity theft and fraud, visit www.bbb.org

Posted by Katie Arnholt Kim
The Kim Group
www.thekimgroup.com

Your Credit Score & How to Improve It 101

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Sun, 16 Aug 2009 14:00:53 -0400

More and more people are becoming aware of their credit score and realizing some repair maybe needed in order to qualify for the loans they need to buy a house. So what is a good credit score? Well, according to Damon Remy of Cornerstone Restorations LLC, your credit score is graded as follows:

740+ A+ Lower Rates
700-740 A
620-699 B
580-619 C Higher Rates
450-579 D Virtually No Financing Available

In order to understand how your credit score is what it is, you first need to understand how your credit score is determined.

5 Factors of Credit Scoring

35% Payment History - Late Pays, Collections, Foreclosures, tax liens, judgements, etc.
30% Amounts Owed - Credit cards, mortgage loans, auto loans, HELOC's, etc.
15% Length of History
10% New Credit - soft inquiries, hard inquiries
10% Types of Credit Used - mortgage loan, auto loan, 2-3 major credit cards

Before you run out and hire someone to fix your credit score, please take a look at some of the things that you should know about your credit score and what you can do about it.

Payment History - 35%
1. a recent 30-day late can cost 50+ points
2. paying a collection that is more than 2 years old can hurt your score
3. Being past due on accounts can cost 50+ points
4. Dispute derogatory accounts - they do NOT automatically fall off your report after 7 years
5. Divorce decree does NOT take precedence over a creditor agreement
Amounts Owed - 30%
1. New debt temporarily decreases the score - it takes 6 months before new credit cards start working possitively for you on your credit score
2. Keep credit card balances below 50% at all times to maintain your score
3. Keep credit card balances below 30% of the limit 3-6 months prior to applying for a home loan
4. Do NOT consolidate debt - share outstanding debt evenly among your cards
5. If you go over the limit on your credit card even by $1, it will cause a serious penalty
6. HELOC's can be considered revolving debt, not mortgage
7. Do NOT close credit cards except in certain circumstances
8. USE YOUR CREDIT CARDS or they will become unrated in 3 months
Length of History - 15% & Mix of Credit - 10%
1. Hold onto old credit cards, even if the rate is not great
2. New credit users can add themselves to another person's credit card as an authorized user to generate a score
  1. This use to be the case, but not so much any more.
3. Mixture is best
4. The type of credit card DOES matter - DEPARTMENT STORE CARDS ARE A NO - NO!!!
5. 3 to 5 revolving credit cards is optimal with established credit history
Types of Credit Used - Inquiries - 10%
1. Soft vs. Hard Inquiries
2. 14 day window for pulling your reports
3. Inquiries affect the score for one year and can cost between 2 and 30 points on the score depending on your current score
4. Mailings that state Pre-Approved means you are NOT pre-approved - you just fit a high level of criteria for them to send you a mailing. They haven't pulled your credit yet.

How to start improving your credit score!

Order Your Credit Report & Score - order your credit report and score from all three national credit bureaus, TransUnion, Experian, and Equifax. You can go to www.freecreditreport.com or several other sites.
Verify the Data Reported - you need to verify your data in order to ensure it is accurate.
Dispute Inaccurate Data Immediately - Contact your creditors and send letters of dispute to the credit bureaus to have errors on your credit report corrected. Send them CERTIFIED!
If you don't see your credit score increase after you have done all the above items and it's been a couple of months, then you might want to talk with a professional about helping you out. You can check out www.LeaseOptionCreditRepair.com or contact Damon Remy at Cornerstone Restorations at (314) 787-3139. Agents - you should contact Damon and discuss his program for agents with clients that need this service.

Katie Arnholt Kim
The Kim Group
www.TheKimGroup.com

How do you motivate yourself?

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Thu, 02 Jul 2009 09:19:49 -0400

I am an upbeat person. I alway try and see the positive outcome in a situation or how to make the best of a situation. I have realized that not everyone has this trait. Some people alway see the negative, alway complain about this or that instead of seeing the opportunity within the situation.

I believe it's personal motivation that makes us into who we are. If you have the attitude that no one can stop you, no one can and you probably see the positive rather than the negative in a situation and find opportunity where others can not. Although, even in the toughest times, ones motivation might be challenged or hit some rough spots.

So how do you motivate yourself? I have found that I need to constantly change how I motivate myself. The constant changing keeps it fresh and exciting to me, which is characteristic of my personality type: D and I. :) Here are some things that I have done in the past to motivate me:

Getting up 30 minutes earlier and doing a workout video - it gave me energy in the morning and woke up my mind prior to getting into the office. I also found that I had more energy throughout the day when doing this. I talked myself into it by saying it's only 30 minutes earlier. I hit snooze for 30 minutes. I didn't take on a full hour workout, just something to get the blood bumping and that would work with the timeframe that I have.
Doing yoga in the morning - I would switch back and forth between The Biggest Loser Workouts and Yoga DVDs for my morning workout. I found that yoga really helped me relax and cener my attention. Originally I wasn't a fan of yoga. I am a runner and feel you need to sweat and be breathing hard to get a workout. So when I couldn't really move the day after my first yoga class. I knew I had to change my thinking.
Check Facebook, Twitter, LinkedIn and other social networks in the morning, noon, and night. I found that I was constantly checking my social network accounts which started to prohibit me from working. So I realized I had to stop this. I found that if I could get online and check my social networking sites after my workout it gave me a dedicated time to do it. I would then check it prior to going to lunch. I did it prior to lunch because there was a definite end point. So it wouldn't go on into the afternoon. Then I would check it at night. Again, there is a definite end point - how long my eyes can stay open. :) While this did not directly affect my motivation, it indirectly did because it gave me my time back.
Audiobooks - I have a 20 minute drive to work. So I would listen to music and just bee-bop along till I got to the office and then try and focus once at my desk. About a year ago, I purchased an audiobook for a long car ride. The book was Good to Great - excellent book btw. I found that I was so motivated at the end of the car ride that I could hardly contain myself. I needed to get out and DO something! So I thought to myself. If I listen to an audiobook on the way to work, how pumped up would I be once I got to work? I tried it and the results are amazing! I have a great mental focus as soon as I get out of my car, and I am ready to take on the day. You can also download audiobooks onto your ipod. So you don't have to worry about carrying the CDs or losing one.
Podcasts - I tried podcasts a couple years ago when the buzz came out and I didn't really get it. So I thought I would give it a try again. I am pleasantly surprised. I went onto iTunes website, clicked on "podcasts", and then clicked on "business" (all on the left side) and a bunch of podcasts came up. I decided to try some podcasts on sales and project management. These podcasts are free! There are some you have to pay for, but there are a lot of them that you do not have to pay for. I recently subscribed to Sales Gravy, Zig Ziglars motivational podcast, PM, and real estate investor. I need to throw out that you might want to listen to a couple of podcasts prior to concluding if you like it or not because you might be listening to a bad topic or podcast, but all the other ones might be awesome.

So what motivates you? I have heard people making dream boards, which I have entertained doing, but haven't just yet. I have heard people getting coaches to hold you accountable. So I am thinking they also motivate as well.

Please feel free to share how you motivate you!

The Kim Group Property Tour - June 2009

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Tue, 30 Jun 2009 00:19:13 -0400

We have been so busy this month that when we were finalizing our Property Tour this month we had to take out some of the properties that had already been sold or leased, which is a great problem to have. :) We hope you enjoy the tour.

Please tell us what you think. We value your feedback!

Thank you, Katie Arnholt Kim The Kim Group www.thekimgroup.com

Strategies for businesses in a downturn economy

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Fri, 26 Jun 2009 13:22:07 -0400

Strategies for businesses in a downturn economy

In reading a recent article on businesses in this downtown economy, Harvard Business School professor Michael E. Porter founder of the modern field of business strategy answered some questions on how and where businesses should focus during this time.

Question: What strategies should small businesses use to survive this recession?

He expressed that during a time period of economic downtown there is an overwhelming instinct to lay off and cut back. He recommends that if you are going to lay off and cut back, you need to do it with your business strategy in mind. The biggest mistake is to cut across the board. He goes on to state that "good leaders need a positive agenda, not just an agenda of dealing with crisis."

This reminds me of the first couple of points in the book Good to Great. You need to get the right people on the bus, then with the right people, you need to decide where you are going (aka business strategy). If we lay off the wrong people, then we have the wrong people on the bus directing our business, which can be the demise of a company. Gary Keller of Keller Williams Realty said during the 2009 Keller Williams Family Reunion that this is the "Era of Extra Effort" those who are average or mediocre will be laid off. You are seeing this across the nation. Companies are laying off individuals - cleaning house. Now, I need to throw a clause in here that some companies are letting good individuals go because they are not going about it according to their strategy.

Question: What is the best way for small businesses to capitalize on any recovery?

Porter comments companies that ramp up their capacity will aline themselves to gain market position. Larger organizations will not be able to meet the new demand due to downsizing or outsourcing.

This is inline with what Keller said - Get Real! Get Right! Wake-Up! "The Business with the Lowest Costs Wins!" - look at the investments in your business and put a dollar amount to everything. Is advertisement XYZ paying for itself? What's the ROI? Is it worth the investment? Remember the profit you seek will always be made in the way you manage your money. When the market shifts, you must create a budget that matches your revenue. You need to lower your costs now and revisit this every month.

As Charlie Munger, Warren Buffett Speaks, "Name a business that has been ruined by downsizing. I can't name one. Name a company that has been ruined by bloat. I can name dozens."

Are there opportunities in trying times?

Porter stated "during an economic downtown there is a greater level of flexibility."

Get involved in the market of the moment. What is happening now? Normal homes priced at their normal value are not selling. What is selling? What price range in your area is selling? What REOs are there in your area? Short Sales? Foreclosures? Lease Renegotiations? Companies down sizing? Companies expanding. Know your market and the market of the moment and price your listings ahead of the market.

As W. Edwards Deming said "It is not necessary to change. Survival is not mandatory."

Looking for commercial real estate in peoria il? See what we can do for you!

Managing your online image

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 24 Jun 2009 22:21:14 -0400

Maintaining your online image

With social networking becoming more and more popular and not just with the teens and tweens, don't be surprised if your professional network start conversing with you about your latest Facebook post or Tweet. I was at a Women In Leadership monthly luncheon when one of the ladies at my table asked me how I got involved in Building Steam, which is a local running program. I was completely surprised by the question, and I knew she could tell by the expression on my face. She said "I am following you". I had to laugh because I didn't realize anyone of my professional network connections were truly following me. It ended up a great connecting point with some of the new individuals at the table and lead into some great business conversations.

So back to my point, with your professional network starting to follow you or your company online, how do you monitor your online image? We all know bad news spreads faster than good, and it's hard enough to control it when it's word of mouth, but when it is a tweet that is showing up on everyone's Twitter that are following them, things can get out of control fast.

So here are some tools are online monitoring or spying:

www.backtype.com - sends alerts when a comment is made that includes your company name or brand
www.blogpulse.com - searches blogs for mentions of your company
www.boardreader.com - searches message boards, forums, videos, and Twitter
www.google.com/alerts - sends you alerts when your company or brand appears on the Web, blogs, news, video, or discussion groups
www.icerocket.com - searches blogs, news, Web, MySpace, Twitter, images
www.search.twitter.com - searches for mentions of your brand or company on Twitter
www.tweetdeck.com - among other things it can monitor mentions on Twitter
www.technorati.com - searches blogs, photos, and videos

If you don't think your competitors are not using these tools, think again. When I tweet'd "going kayaking and reading a book - is there anything better to do tonight?", I had three "following" requests from sporting good stores and two from other individuals. When I tweet'd "heading to Wine & Book Club - I just finished the book! Yes!", I had two "following" requests from wine companies/providers. Companies are using these types of tools to find their customer base or to expand their customer base. You might want to search for people tweeting about "homes", "commercial space", whatever your specialty is to find out the online pulse of what is out there. Some of these applications/tools also let you restrict the search to a specific demographic area. They are very powerful and constantly evolving.

5 Key Factors for Email Marketing

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Tue, 23 Jun 2009 18:44:45 -0400

5 Key Factors for Email Marketing

Figuring out who gets what.

Most of us maintain a list of past clients, current clients, and prospective clients. Do you divide it down further? Maybe by industry, gender, age...? Having three levels deep information on your contact database enables you to hone your marketing efforts more effectively to your clients. You don't want to send out an eflyer on first time homebuyers tax credit to your past clients or maybe your clientele above 45, and you certainly do not want to send a reminder to file for the senior citizens tax freeze to your clients under 30. Having secondary information on your contact database aids you to provide a more direct message in your eflyers.

I also ask people who sign-up for my newsletter for their preferences. Are they an investor? Do you want industry news? Do you want new listing emails? Are you a business owner? Anything that will help me send than more targeted information in my emails to them I try and get. If I am better servicing my clients by giving them target information, I am providing a better service to my client and in the end making them happier and not bombarding them with information that is deemed useless to them.
Grab their attention.

Your subject line is the deciding factor between your email being opened or trashed. You should make your subject line clear and present the benefit that your email has to offer, such as "10 new product that save you money.", "Tax Exemptions - are you eligible?", "How to solve XYZ problem."

You also want to avoid words that may get caught in the spam filters. Some of these words to avoid are: guaranteed, promise, get rich - to name a few. Some times "free" can get caught in a spam filter, so you might want to use "complimentary" - i.e. "complimentary CMA".

In the "Sender" field, you want to use the name of your company, such as "The Kim Group, your commercial real estate specialists."
Timing is EVERYTHING!

During the middle of the week is one of the best times to send emails, especially right before lunch or right after. Avoid Mondays! You know how crazy they can be for you. So your customers are probably in the same predicament - digging through their weekend email.
How often? It depends on your relationship with the client and the client. A typical rule for type B prospects, once or twice a monthly is plenty. For type A prospects, maybe once a week. For longtime customers, once a week or so. You have to gauge your client and your relationship with them. I recommend using the Keller Williams 8x8 and 36 touches for a reference. Most importantly you want to make sure you are truly offering something new or valuable. If you are not, you want to hold off on sending till you do; otherwise your emails will start to be perceived as not having any value and will start being deleted prior to even reading.
Make it attractive

If you are like me and do not have a degree in design or marketing, then keep it simple and professional. Your logo should go at the top of body. For your content, use short sentences or bullet points so readers can scan the message. Use graphics or photos sparingly - stay away from clip art! You will also want to include a line "Can't see this graphic? Click here..." to redirect the reader to the image on your website. It has been said/studied that people like to click buttons (I know I do when I visit the Museum of Science & Industry in Chicago - great place! J). Also make sure you are in compliance with email regulations and have a place for users to unsubscribe to your mailing list.

Get help if needed! Remember if you are the bottleneck, remove yourself! J There are eflyer providers who have pre-design templates, color schemes, pictures, graphics, etc. I use MailChimp. I know there is Constant Contact, Rate Point, and may, may more.

Side Note: There is no mention of license rules & regulations in here. So make sure you double check with your local and state regulations in order to ensure you are in compliance with them.
Measure your results

We only advance what we track....so what are you tracking? Most of the emarketing providers also has tracking services along with them that can help you understand how many recipients deleted, opened, or clicked on your eflyer. MailChimp has industry averages which can demonstrate to you if you are above average or below in your open-rate or click-rate. An open-rate between 10-13% is considered good via national standards and 13-17% click-rate.

MailChimp also shows me where the users open the email from. I love this because I can show my clients that my eflyers are being opened in California, Texas, Philadephia, Alaska, Ireland, etc. via the map they provide to me. So I can graphically show my clients that my marketing is reaching far beyond the local area. This is a HUGE win with my clients who believe they have to go with the "big player" in town in order to get the exposure needed to move the property.

Commercial Outlook: Leasing Projections

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Mon, 22 Jun 2009 15:13:14 -0400

Investment prices are lowest in the mid-west compared to other markets nationally. In the midwest, sublease space is closer to normal than SIORs in other parts of the country. So we are not going to see the huge decreases in rent that will be seen on the national level. We will see rent prices remain the same or decrease in order to stay competitive with vacant property that has been on the market longer. If you have had your property on the market for 6 months to a year, you will want to contact us and discuss where you property should be priced at in order to move in the current market.

Please note the table below shows the projections on a national level.

Property Type	Q3 Vacancy	2009 Net Absorption (in sf)	2009 Rent Growth
Office	16.70%	-77.4 million	-4.20%
Industrial	12.20%	-148.1 millions	-4.10%
Retail	13.40%	-49.8 million	-9.00%
Multifamily	6.00%	127,500	1.70%

Investors are showing concern for market sectors that are dependent on consumer and corporate spending, ie. shopping malls, warehouses, office buildings and the one highest on their list, hotels. Companies involved in health-care facilities or senior housing are thought to be somewhat protected.

Listings in Central Illinois Area as of 6/22/2009:

Industrial - 271 active listings (38 in city of Peoria)
Office - 680 active listings (133 in city of Peoria)
Retail - 512 active listings (79 in city of Peoria)
Multi-Family - 51 active listings (2 in city of Peoria)

Source: NAR Commercial Real Estate Outlook, February 2009

Central Illinois Real Estate Community Blog Group is Created!

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Mon, 22 Jun 2009 11:16:32 -0400

I was searching for a forum for the Central Illinois region. After searching for awhile, I realized there was not one created yet. We have waited long enough! :) If you are a real estate agent selling and buying real estate in the Central Illinois Area, please join this group.

A little bit about myself, I am a real estate broker with Keller Williams Premier Realty in Peoria, IL. I grew up with parents who are actively involved in real estate and construction industry. I have childhood memories of working on a home or office building after school and on the weekends in order to fix it up for the next tenant or to sell. It was called "family bonding time" at that point in my life; however, I have come to realize it was teaching me how the real estate industry and empower you to let your money work for you instead of working for your money.

I graduated from the University of Iowa with a BS in Computer Science. I went to work in Chicago for a major consulting firm in their R&D Department. While it was great flying everywhere and working with emerging technology, it wasn't really fulfilling. I went back to school and got my Masters Degree in Computer Information Systems, and I found the business classes to be of more interest. During this time, I also purchased my first condo in Chicago and what a rush! The year after, I purchased a second condo. Then the following year, I purchased another condo. I decided after the third condo to get my real estate license, and I am so glad I did. I enable me to begin my real estate career and gain a deeper insight into real estate and the many different options that are available. I am constantly learning of new opportunities and attending training sessions all the time to stay current on what is happening in the industry.

Today, I work in the commercial real estate market and the construction industry. What really drives me is helping businesses and investors succeed! There is nothing like it! It is what drives me every day. Knowing that I can help a company take the next step to financial security or help an investor start making his/her money work for him/her instead of working for their money. There is no feeling like it! I work hard for my clients because they work hard for their money and trust me to take care of them, and this is why I 95% of my business comes from repeat customers or referrals.

I am a member of the following organizations:

Jack Miller Network - Top 600 Contractors In The United States
Better Built Contractors
Top 500 Remodeler
Better Business Bureau
Chamber of Commerce
Peoria Board of Realtors
Commercial Realtor
Children's Home Foundation Board Member
Women in Leadership - Board Member - Vice President of Membership
Young Professionals Organization of Greater Peoria
Keller Williams Commercial Division

Although I work hard, I also enjoys volunteering through the Cursillo community, playing soccer, mountain biking, running, reading, boating, water skiing, and scuba diving. Almost any sport except baseball - I never figured out the hand-eye coordination to hit the ball. However, I do appreciate afternoon Cubs games. :)

A little bit on The Kim Group (www.thekimgroup.com) - We LOVE working with residential agents! YOUR clients stay YOUR clients when you work with us. We want to earn YOUR business, trust, and referrals. We do not want to take your clients away from you, but we do want to help you better service your clients. We keep you updated every step of the way. You know what is happening with your client at all times.

We had a residential agent contact us and asked us if we could help her client find 900 SF space for a recording studio. The only thing is they need the space next week and only for 18 months. We were able to call them that afternoon, arrange some showings the next morning, and we signed a contract the following day! The agent was happy that she was able to help service her client especially in a tight situation, and we were happy to have won the trust and referral of the agent.

Money Saving Tips for your business

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Mon, 22 Jun 2009 10:03:35 -0400

Everyone is trying to cutback and save money these days. So I thought I would share some money saving tips. Please feel free to add any that you have found helpful.

Business Meals & Entertaining - You don't want to take your clients to McDonalds or bust out a coupon when the bill comes. Those are definitely not ways to win business. One way to get discounts on business meals without your clients knowing about it is to register your credit card at www.rewardsnetwork.com and you'll receive discounts up to 15% at about 10,000 bars, restaurants, clubs, etc. nationally. The discount is applied automatically and shows up as a deduction from the total cost of the bill on your statement. It's free to sign-up and they allow you to sign up to five cards.

Office Equipment - There are numerous sales events going on these days at local retailers. However, if you want to save even more money on some big ticket items, such as printers, desks, monitors, etc., go to www.craigslist.com and check out the "free" section or freecycle listings. Now if you are not a fan of going to TJMax and searching through all the clothes for the deals, this might not be your cup of tea. You will have to search through figurines, shag rugs, and some horrible and dated gifts, but you will also be able to find some office furniture, printers, file cabinets, etc. that won't cost you a penny. Also if you need to get rid of something, you can post it there as well. Also keep your eye out for going out of business sales and auctions, while it is sad a business is ending, it could be a great opportunity to get a great deal. We picked up some amazing fire proof filing cabinets from a grocery chain going out of business for $20/each. It was a steal as far as we were concerned, and the company had to liquidate all of their belongings.

Labor - One of our most expensive and appreciated assets is labor - we need them in order to survive. Most companies have asked employees to take anywhere between a 10-20% reduction in salary, while others are maintaining salaries yet not giving out raises. First things first, before you think of hiring anyone make sure your bus is in order. Do you have the right people on the bus and in the right seat? If you don't know what I am talking about, check out the book (or my favorite the audio book) Good to Great. Once you have your bus in order and define where you are heading, you will be able to see what type (if any) of additional labor you need. First things first, think interns! With the job market slowing down, more and more student are looking for work. Start by visiting your local college's job placement office. See if they will post that you are looking for someone with these skills and for this many hours a week. Some of them will work for free to obtain the experience and get it on their resume. Another option is to post an ad online where you can hire contract workers for specific deliverables. You provide information on your deliverable/project and providers/seekers write back with proposals and pricing. A third option is hiring a virtual assistant. I hired my first virtual assistant this year, and it was liberating. She entered my listings into various websites such as costar.com, loopnet.com, etc. She created my property flyer templates - I had to fill in the specific marketing and property details, but she inserted pictures, formatted it with the property specific information from the MLS sheet, etc. She also took all the business cards that I had received from a recent conference and typed them into an excel spreadsheet which I imported into my contact management software - REA - and she then imported them into my eflyer provider - MailChimp. She created a newsletter template and new listing template for my eflyers. It was a great investment. Now, I will warn you it might take a little bit of time to figure out how you will work with a VA. So you want to be very clear in what you want and what you expect. For example, I sent her three examples of newsletter eflyers. I told her what I liked and did not like about each one of them. I had to do some minor tweaking to the finish template she did, but I would have done it no matter if someone in my office created the template (call it personal preference). My VA was able to get things done that I did not have to do personally. I was given some great advice early in my career - find out where the bottlenecks are and work them out. If you find out you are a bottleneck, remove yourself from the flow and monitor how things are done afterwards. Once I realized I was the bottleneck for getting flyers out for our properties and posting them online, I hired a VA and all of these items were done within a week. It was amazing how I was able to focus more on lead generating and selling when I wasn't having to create flyers, post info on props to other websites, create marketing materials, etc. It not only saved me money, but it provided me opportunities to get more done within the same time frame.

Please feel free to post your suggestions on how to save money.

This Month in Real Estate - June 2009

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 17 Jun 2009 17:14:15 -0400

Real Estate is still the best investment - look at the numbers

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 17 Jun 2009 14:07:23 -0400

In REALTOR (R) magazine's June edition, they post some eye opening statistics on home equity. In an earlier post, I explain how real estate is a great investment because of the leverage capability it provides the investor. In the article "Homeownership Still Pays" written by Robert Freedman, he states "Many american have taken a hit to their home equity over the past couple of years, and some may wonder if it's really the smartest financial decision to own a home. Good news - a recent analysis of Federal Reserve data by the NATIONAL ASSOCIATION OF REALTORS (R) shows the answer is yes." Was this ever a question? Obviously it was for some.

The article states that a homeowner's wealth exceed that of a renters by a ratio of 50:1, which in dollars means a median of $205,200 vs $4,200. WOW!

Also, homeowner's who have owned their own home for 10, 15, or 20 years have enjoyed strong equity gains despite the recent housing market downturn.

Below is a graphic from NAR, Federal housing Finance Agency, and Haver Analytics, 2008 from the article showing the home equity performance over a 5,10,15, and 20 year period. It is significant over time and even over the last 5 years, for the most part there is still a gain. This data clearly shows homeownership remains the biggest factor of wealth for the typical household, even when the market might not be ideal.

To read the full article, go to: http://www.realtor.org/rmonews_and_commentary/articles/2009/0906_equity_snapshots

Housing Market Statistics for April

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Thu, 11 Jun 2009 14:43:40 -0400

Hot off the press, or Peoria Area Association of Realtors Office :), are the market statistics for April 2009. Below is a link for you to check them out.

http://www.thekimgroup.com/Downloads/PAAR-Market_Statistics-April_2009.pdf

What are you looking at?

Well if you are selling your home, you will want to pay close attention to the months supply within your price range. Months supply of homes on the market is the ratio of the current inventory of active listings compared to sales in the last month. So given the recent sales activity, one could estimate how long it would take for the entire inventory of active listings to sell, assuming no new listings appear on the market and that the homes are priced reasonably.

If you are a buyer, you can see where the majority of the inventory lies. Some buyers tend to think there are more deals available in the ranges where there is more supply.

Either way, it is good to know what the market is doing. If you are interviewing agents to sell your home or assist you in purchasing a home, ask them about the market. See if they know what the current months supply is for the price range of your home or the home you are looking for. If they are unsure, you might want to interview more agents. You want your agent to know what the market is doing and where your home is priced - is it priced right? too high? what is your competition? etc.

CASH DASH - Do you have money out there that you do not know about?

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 10 Jun 2009 17:17:26 -0400

Alexi Giannoulias, Illinois State Treasurer, has a link off his website for the Illinois' Lost and Found Cash Dash. You can search to see if you are among the millions of people, businesses, and heirs who have cash or valuables owed to you in the State of Illinois.

To find out if you have money out there, go to: http://www.treasurer.il.gov/programs/cash-dash/Owner/Owner.aspx

REMEMBER: Type your LAST NAME FIRST in the Name field.

Paint Color Capturing App for iPhone

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Wed, 10 Jun 2009 15:40:45 -0400

There are tons of applications out there for the iPhone, and it seems that everyday there are millions more being created. Most of them are for fun or entertainment. However, Benjamin Moore and Sherwin-Williams created applications for the iPhone to capture the color of something and be able to assign one of their paint colors to it.

Benjamin Moore's application is called the Ben app and is able to help users sort through 3,300 hues to match those in their iPhone photos. Sherwin-Williams' applicaiton is called ColorSnap which is an app that feeds off more than 1,500 available colors. Both applications off the same result with different levels of functionality.

Some additional features to the applicaiton are a mix and match capability. Once the main color is chosen, each app provides different approaches to finding a complementary color or colors.

They also offer some tips and suggestions as well as the ability to add a color as a "favorite". If you are a designer, photographer, or color enthusiasts, you are probably already aware that the colors that show up on your iPhone are not guaranteed to be exact matches to real-life colors. So if you choose a color palette through one of these apps, plesae make sure to look at the actual paint swatches too and make sure the swatches work in different lighting levels in the room where they will be applied.

Sherwin Williams App - ColorSnap

Benjamin Moore - Ben app

Profit Share

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Mon, 01 Jun 2009 09:41:19 -0400

In 2008, only 3% of REALTORS(R) received a share of their company's profits.

In 2008, 73% of Keller Williams associates with at least one person in their download received profit share.

Keller Williams profit share has helped agents get through some of the tough times in this economy. For agents that might not make a single sale a month, the extra money they received from profit share has helped them pay their bills and support their family. It has also helped agents with medical conditions while they are unable to work. They are still receiving passive income from profit share which has helped pay medical bills, house bills, and lessen their financial burden.

Keller Williams Profit Share is WILLABLE!! So you can will it to your spouse or children and it will continue as long as there are people in your downline.

Check out the video below to see how profit sharing has effected some of the agents at Keller Williams.

Comment on Housing Hitting Bottom Article

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Fri, 29 May 2009 13:30:12 -0400

I was asked to comment on an article titled: Housing Hitting Bottom Means Fewest Starts Since 1945 (Update1) http://www.bloomberg.com/apps/news?pid=email_en&sid=aDSgjBGniq0E. So I thought I would share my response.

While the article tells us nothing new, what it does not say is more important than what it does say. With home prices where they are at today and construction materials as low as they are, it makes more economical sense to purchase an existing home and remodel it. We have seen more home remodels this year than in the past 4 years. This is mostly due to prices on construction materials being as low as they were in 2004 and people not wanting to sell their home for less than they feel its worth. So they remodel their existing home to fit what they want in their home, converting screened-in porches into 3 season rooms is a popular remodel these days as well as basement fit-outs.

To give you some actual data on the housing situation, below is a graph showing the national median home prices from 1989 to 2008. The black line in the graph shows a 20 year historical appreciation rate of 4%. You can see that historically homes were appreciating at a gradual pace, just about 4% a year. Then in 2002, the median home price peaked just a little bit over the line, and they kept increasing until about 2006. What does this mean? Well it means that from 2002 to 2007, we were borrowing buyers from the future. People who typically would not be able to purchase a home were purchasing homes or investment properties. You see this today with the news media informing us of the number of foreclosures and delinquencies on mortgages. These individuals jumped on the opportunity to purchase a home or a second home, which at the time seemed like a great opportunity. However, some of them fell victim to mortgage fraud, over extended themselves, or were not fully informed or understood their loan terms. Whatever their situation was they had the best intentions which have now turned into a nightmare for them.

IMAGE NOT LOADING - VISIT http://www.thekimgroup.com/Downloads/1.jpg TO VIEW

So we borrowed some buyers from the future. What happens now? Well, we are going to see a dip below the line to make up for the overage that we took, will it mirror the upside of the curve? Experts do not seem to think so given the stimulus programs the government is trying to put in place. Two main legislatives are American Recovery and Reinvestment Act of 2009 and Homeowner Affordability and Stability Plan.

Six key housing-related provisions of the American Recovery & Reinvestment Act of 2009:

1.     First- Time Home Buyer Tax Credit - $8,000, NO repayment
2.     FHA, Fannie Mae, and Freddie Mac Loan Limits
3.     Neighborhood Stabilization
4.     Commercial Real Estate
        a.     Funds for state energy programs to support commercial property owners' investment in
                energy efficiency upgrades
        b.    Potential tax relief for small business owners: bonus depreciation & capital expenditures,
               5-year carryback of net operating losses
5.     Energy Efficient Housing Tax Credits and Grants
        a.     Homeowners will be able to claim a 30% tax credit for purchases of new furnaces,
                windows, and insulation through 2010.
6.     Rural Housing Service

Three key elements of the Homeowner Affordability & Stability Plan:

Refinancing option for loans guaranteed by Fannie Mae and Freddie Mac to help make mortgages more affordable.
$75 billion homeowner stability initiative to assist up to 3 to 4 million at-risk homeowners.
Support of low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.

These programs will only work if people know about them and take advantage of them. I have informed my clients of these programs and blogged about them on our website blog, but if people don't take advantage of them, they are going to be ineffective.

Another part of the concern is that approximately 420K hybrid ARMs are scheduled to reset in 2009. If you are in this boat and in a financial pinch, talk with your mortgage company immediately and see what they can do for you. Do not wait until you are so far behind in payments that it is too late. I would also encourage you to talk to a real estate agent and see what the market is willing to pay for your home in the event you need to sell.

For some bright light at the end of the tunnel... In the fourth quarter of 2008, 6* states saw an increase in sales, mainly in areas where the sharpest declines in price occurred according to the National Association of REALTORS ®.

*The 6 states are California, Nevada, Arizona, Minnesota, Virginia, and Florida.

If you have not purchased a home yet, now is the best opportunity to buy. New homeowners are receiving an $8,000 credit, and they are trying to get legislative past so it can be used towards the down payment. This would be a huge help to first time homebuyers. The best part about this is that if you have not owned a home in the last three years, you are eligible as a first time homebuyer! Plus, mortgage rates are at an all time low. To put it in perspective, in 1971 gasoline was 40 cents a gallon, the stamp was 8 cents, and the mortgage rate was 7.48%. Today, gasoline is $2.65 a gallon, the stamp is 44 cents, and the mortgage rate is 5.875%.

IMAGE NOT LOADING - VISIT http://www.thekimgroup.com/Downloads/2.jpg TO VIEW

With everyone talking about the housing crisis or the economic crisis, let's take a second and state what CRISIS stands for a "Circumstance Requiring Immediate Shift In Strategy". We can not do what we did last year and expect the same results. We have to shift our thinking and adjust our strategies to the current economic situation. You can either shift or be shifted...that is the challenge we all face professionally right now. We have been living through the era of average, and now we are living in the "ERA OF EXTRA" - EXTRA EFFORT. Effort matters today more than ever! This is your best opportunity for the biggest professional defining moment in your life because great success is always launched by great motivation and momentum!

Free 411 Service from Google

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Tue, 12 May 2009 13:26:44 -0400

Don't have the internet on your phone to find a business or phone number? or maybe you do, but you don't use it, so you dial 411 and get charged a fee?

Well, google has come up with yet another great invention - google 411! Well, it's technically goog411.

This is a great new service from Google, and it's FREE!! Don't waste money on calls to 411.

If you are driving down the road and want the number to reserve a tee time at Golf Course ABC, then dial the number (recommend putting it in your address book) 1-800-goog411 or 1-800-466-4411. The voice on the other end says "City & State". You say "Peoria IL" (or wherever). He says "Business, Name or Type of Service." You say "Golf Course ABC". He says "Connecting" and Golf Course ABC answers the phone.

How cool is this!!?!?!?!

It is nationwide and absolutely free!

Check out the video clip below for a more detail demonstration of the service.

Business Plan Competition

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Fri, 08 May 2009 11:49:22 -0400

Ever thought about starting your own business? Have you been thinking about it even more lately? Well, give it a shot! LAUNCH has a business plan competition for aspiring entrepreneurs. The winner will receive cash prizes and a multitude of general business consulting services to get their business up and running properly. So if you have been thinking about starting your own business, please check out the information below and Good Luck!

What is Launch?

Launch is a new Business Plan Competition designed to encourage, foster and support start up businesses in Central Illinois and to promote entrepreneurship of all kinds.

How does Launch Work?

The 2009 Launch Business Plan Competition will include a preliminary round and culminate in a final round where the best business plan will be selected.
All contestants who present their plans in the preliminary rounds wil receive feedback and suggestions from the panel of judges. Those advancing to the final round will be eligible for the grand prize consisting of a cash award plus free consultant services from a variety of professional areas of importance to start up businesses.

The LAUNCH Business Plan Competition is open to anyone who has a new business idea and plans to start that new business in the Tri-County area. There is no application fee.

Business plan must be submitted by August 1st. The Business Plan Competition preliminary rounds begin August 25th. The winning business plan will be chosen during the final round on September 30th.

Submit Business Plan

Check out www.launchnewbiz.com for more information or to submit your business plan.

The winner will receive cash prizes and a multitude of general business consulting services to get their business up and running properly.

Free Workshops - How to Organize and Write a Business Plan

They are offering free workshops to teach you how to organize and write a business plan. Topics covered include:

Selecting target markets
Choosing the right location
Creating cash flow budgets
Estimating sales & expenses

Workshop dates are:

April 21st
May 27th
June 30th
July 30th

Time: 3:00 - 6:00pm

Place: Peoria NEXT Innovation Center; 801 W Main; 2nd floor

Besh Wishes!

Do you know the numbers?

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Thu, 23 Apr 2009 13:22:24 -0400

A good friend once told me there are two types of investors. Those that trust what people are telling them and make decisions off their knowledge and advice, and those that learn about what they are investing in and do the research themselves. I have found that while most people start out as the first type of investor. The serious investors usually are a mix of the two types. They have trusted advisors, yet they also do some of their own research.

So I thought I would post some interesting information for you to view. The Housing Supply Outlook from PAAR. It shows you the housing supply within the given value ranges and by housing type. One thing to know when you are viewing the outlook data is that a market is considered to be balanced between buyers and sellers (aka not a buyers market nor a sellers market) when there is roughly a 5 - 6 months supply of homes.

View March 2009 Housing Supply Outlook

Making Your Home Affordable - 2 Programs you may not know about

Katie Arnholt Kim (The Kim Group ~ Commercial Real Estate Team for Peoria, IL ) — Fri, 17 Apr 2009 10:24:24 -0400

It has been a frustrating time for home owners. There is no doubt about it. I have listened to a lot of home owners who purchased their home with an arm loan thinking they would refinance in a couple of years and leverage some of the equity that was built up over that time period. However, with the foreclosures in their neighborhood or lower comparable sales prices, they have been unable to refinance. The sad part is that the banks would not even talk to them because they were not behind on their payments.

Well there are two new programs that I just heard about that I want to share with you. I want to through out the disclaimer that I have not heard of anyone who has leveraged this program yet. So I would appreciate the feedback if you have.

Home Affordable Refinancing

It is stated this program is for homeowners who pay their mortgages on time but are not able to refinance and take advantage of today's lower mortgage rates due to a decrease in the value of their home. They will help borrowers whose loans are held by either Fannie Mae or Freddie Mac refinance into a more affordable mortgage.

Home Affordable Modification

It is stated this program is for homeowners struggling to make their monthly mortgage payments maybe because their interest rate has increase due to an arm loan or they have less income. They will provide you with mortgage payments that you can afford. It was explained to me that they have been working with clients to adjust their monthly payments for a period of 3 or so years in order to help bridge them through this crisis. Then the mortgage rate and payments will be adjusted back to what they would have been at the time they began the program. So at the amazingly low rates that we are experiencing, which souns like a great program!

If either of these programs are of interest to you, then go to: www.makinghomeaffordable.gov.