Martin's Mortgage Minute...

Now is the time to Lock Your Home Equity line.

Martin Rodriguez (SCV Loan Solutions) — Thu, 01 May 2008 02:32:07 -0500

Many homeowners are unaware that some home equity lines have a feature that allows you to convert an equity line into a fixed rate equity loan. The process does not require a refinance and is usually accomplished by placing a phone call to the lender and paying a small processing fee. If your home equity line has this feature you should consider locking it now, while rates are at their lowest.

Here's why I'm recommending an equity lock right now.

Today, 4/30/2008 the FED lowered the FED funds rate by another .25% which means prime rate is at the lowest point it has been in several years. Additionally, the FED explained that further reductions in FED funds rate are unlikely as we risk further devaluation of the US dollar and higher inflation. Basically what this means is that Prime rate is at the bottom right now and not likely to go any lower. -- It's Time to lock

If you are unsure whether or not your home equity line can be converted into an equity loan, you can call SCV Loan Solutions for a free consultation and review of your equity line documents.

Martin Rodriguez
President
SCV Loan Solutions
661-254-6839

Your Equity Line May Be Frozen (and you may not know it.)

Martin Rodriguez (SCV Loan Solutions) — Mon, 14 Apr 2008 00:17:53 -0500

Banks are sending notices to homeowners advising them that their home equity lines have been frozen or reduced to a lesser amount.

If you have an unused equity line, it may be at risk.

Recently, I have received several phone calls from clients who have already received such notices. As a mortgage consultant, I felt very strongly that I share this important information with my clients immediately.

Banks are taking huge write downs and losses as a result of poor lending practices and high foreclosure rates throughout America. As their stock values continue to plummet, banks are being forced to change their credit policy and lending guidelines faster than they can communicate. While it's easy to understand their defensive repositioning, many homeowners are being caught off guard when their bank refuses to honor an equity check or a request for funds to be drawn.

If you believe that you may need to access available funds on your equity line then I would strongly urge you to look at your loan agreement to see if it contains any language that would permit the bank to freeze or reduce your line of credit.

If so, you may want to consider whether or not it makes sense to draw down any of the remaining funds on your equity line. While I would not normally make such a recommendation, this may be the only option available for some people that have a need for liquidity. However this action would have to be carefully evaluated against the cost of the payments and the overall impact on your equity position in your home versus declining property values.

Please consult your CPA, Financial planner or my office at SCV Loan Solutions if you need guidance with this decision.

Email vs Snail Mail.. Stop the Junk mail and be Professional

Martin Rodriguez (SCV Loan Solutions) — Thu, 27 Sep 2007 09:26:13 -0500

I often stop and think. Wow -- how did my parents ever get anything done in the business world 20, 30, 50 years ago?

There was no email, no computers, no internet and the scariest of all no Google. Yikes! (The thought of working without these tools sends chills down my spine.)

Yeah, things moved slower, but nonetheless business was getting done with great success.

Fast forward to the modern era of instant gratification where you can do just about anything (well almost) with the stroke of keyboard and the click of a mouse and suddenly you have a whole new set of problems that keep slowing you down.

Information overload! Spam mail, direct marketing, and many other forms of "in your face click on me now" types of marketing campaigns can potentially rob you of crucial productivity and time. Knowing how to keep these things in their appropriate place and time will help you keep your focus and help you effectively manage your time.

Email by far is the most used part of the internet and coincidentally the most misused, too.

Your school teachers and parents taught you how to effectively write a letter, and for some you learned how to compose a professional business letter to higher level of learning. Whatever the case, the basics are always the same. A salutation, state the purpose of the letter, make a request and set expectations for a response, close the letter.

Personally I believe that email should be treated professionally, but that doesn't mean you have to follow the formalities of a conventional business letter. Email should be straight to the point and brief, yet the brevity should not compromise the intended message. In other words, say what you need to say and be done with it.

So here are some tips:

Brevity is at the heart n soul of your email.

Short emails rule! -- If I get an email thats several pages long, I have to stop and think do I really want to read this now? Can I pass it on to someone else?

Use the subject line. Nothing is more frustrating than trying to find and old email that has no subject line that you can search or sort for.

Get rid of FW: FW: FW or RE: RE: RE: RE: Nothing says junk mail more than an email thats been recycled by everyone in your address book. Clean up the subject line to a single FW or RE as necessary..

Be respectful of the recipients time. Your email is competing for read time with many other emails in your recipients inbox.

Supporting material is important in email, but keep it separate. Know how to attach items and keep them separate from the email body. Let the reader decide if they want to click n open to read your attachment. (By now you better know how to attach files.)

Introduce yourself properly -- If you don't personally know the addressee of your email, you better tell how and why you are contacting them in the first sentence or you're likely to end up in the spam or delete file.

Communicate expectations -- If an email reply is expected. Then say so. If the email is informational only and no reply is needed then state that too. Use the subject line to say "FYI only - No reply needed."

Format your email for easy reading -- Format the email to make key points jump off the page. Your email should be in HTML format which will allow you to do some formatting of fonts and paragraphs. use spaces, italics and different colors to make key parts of the email jump out.

For example an invitation to a business conference might have the place, and time in red and separate from the body of the email.

Protect other people's email privacy: Don't send an email blast to people that don't know each other. You're just begging for spam to be sent to all. Use the BCC line when sending email to multiple parties that don't know each other. This keeps everyone's address private.

Stop the stupid jokes junk mail: Sure everyone likes a good laugh and I admit some emails are pretty funny, but don't send joke mail or junk unless you know the recipient really well and/or you have their permission to send joke mail. We don't need 10 copies of the latest email cartoon clogging your inbox. (this also goes for the overly emotional email campaigns to save some child in need. You can verify most junk mail on www.snopes.com check it out before participating in spam)

Pick up the Phone. Lastly and most importantly, don't use email for things that need personal attention or immediate action. Don't assume that because you sent it, the other person read it. Email is a valuable communication tool, but it's not a replacement for good ol fashion verbal dialogue.

Learn to use email correctly. Understand its limitations and you'll be very efficient in your business. Otherwise you will compromise your productivity in which case your better off going back to snail mail.

Martin Rodriguez
President, SCV Loan Solutions, Inc.

College of the Canyons -- Opens new campus

Martin Rodriguez (SCV Loan Solutions) — Thu, 30 Aug 2007 02:52:42 -0500

Today I had the honor of attending the ribbon cutting - opening ceremonies of Santa Clarita Valley's newest college campus.

The College of the Canyons -- Canyon Country campus.

The project first started in 1991 when the Chancellors office commisioned a long range study to determine the educational needs of the community and recommended that a 2nd campus would be required to accomodate the rapid growth of College of the Canyons main campus in Valencia. Just as projected, the enrollment has steadily increased over the years from 6,500 students in 1990 to over 19,000 students today. The College of the Canyons main campus has been named the fastest growing college nationwide for 3 years in a row and future growth is expected to continue at a rate of 9-10% through 2012. It was clear that the commisions report was accurate and the school would have to expand to accomodate the needs of the Eastern most parts of Santa Clarita Valley.

After passing two State bond measures totaling $242 million dollars to acquire the 70 acres of land, complete the construction of 6 buildings totalling 240,000 square feet, and funding the initial daily school operations, the community welcomed the new campus today with open arms and the college will rapidly become a signigicant part of the local economy.

In a heartfelt speech at todays ceremonies, Superintendent-President Dr. Diane Van Hook told the stories of how her and her team managed to navigate all of the legalislative, legal and construction requirements of building a new college from ground breaking to opening day in only 13 months. Dr Van Hook walked us through the painstaking process of many obstacles and challenges that had to be overcome so as to keep the project on track while addressing the many unexpected surprises that often come with a large construction process. She concluded the ceremonies by thanking the many key people and representives of the construction companies and organizations that worked together on this project to see it through to success.

So what can we expect from this new college campus?

In this first year the school will accomodate 3000 students and will increase enrollment to a projected 10,000 students by the year 2015 or sooner. A multitude of classes will be offered at the college to include Health Occupations, Techonology, Arts and humanities, Engineering, Math, Science, Social Science, Library media tech, and many other scholastic programs will be added as enrollment increases each year.

Intercollegiate sports will be held at the main valencia campus however the campus has a state of the art athletic facilities to accomodate weight lifting and gymanasium sports.

The new campus is located at 17200 Sierra Highway in Canyon Country, CA. For more information on the college class schedule and program enrollment visit the schools website at http://www.canyons.edu/offices/CCEC/FAQs.htm

Personally, as mortgage broker and real estate professional living near the school, I am thrilled to see that our community is pulling together to continue building our infrastructure, our schools, and we are laying the foundation for success for many years to come.

Martin Rodriguez
SCV Loan Solutions

100% Financing in 2007 and beyond

Martin Rodriguez (SCV Loan Solutions) — Mon, 27 Aug 2007 02:45:13 -0500

One of the most commonly asked questions that I get from realtors and clients now days, is who can qualify for 100% fianancing and how to qualify for it.

If there's any loan out there more likely to burst the infamous housing bubble it would have to be the misuse of 100%-interest-only-adjustable-rate financing. So let me address this question head on as the mortgage industry is changing dramatically.

In spite of all that is going on the mortgage industry these days, this doesn't mean there's not an appropriate place for 100% financing. It does mean however, that before you consider 100% financing you must first understand the proper application of this type of loan. You have to carefully evaluate the subject property and then you must ask yourself several questions about your personal finances and your ability to repay the loan through thick and thin.

100% Financing is speculative.

You are speculating that the real estate you are buying will be worth more tommorow than it is worth today. So how do we know the answer to this question for any given property? Well, we don't. So right off the bat, you should expect a higher interest rate for 100% financing becuase of this added risk. What we do know is that given enough time real estate will eventually appreciate, therefore if you hold a property long enough odds are it will be worth more in the future.

Since banks are assuming the full collateral value of the property during the first few years of ownership, they are requiring a much greater scrutiny of the buyers credit history, the appraised value of the property, and they are taking a much closer look at the buyers liquid assets and income. (Something they should have been doing all along). The days of stated income 100% financing are long gone. If you want 100% financing you can still get it, but you need to back it up with solid evidence of your ability to payback the loan.

Here's a questionaire that will help you determine if 100% financing is right for you.

Do you plan to hold the property for longer than 5 years?
Is the property in a well maintained neighborhood that can be expected to appreciate?
Are you happy with the floor plan?
Will it suit your needs for many years to come?
Is the home structurally sound and not likely to require any major improvements in the next 5 years?
Is your current employment stable? Is there any possiblity that a life event could cause you to move against your wishes?
Do you have at least 8-12 months worth of house payment saved in liquid assets?
Is your credit score above 700?
Is your overall debt ratio less than 50% ? (meaning that less than half of your gross income is going towards your debts including the new house payment)
Is your income documented and verifiable through pay stubs or tax returns?

If you answered "Yes" to all of the above questions then there's a good chance tht 100% financing may still be an acceptable form of financing for you. If you answered "No" to one or more of the questions then you should probably consider other forms of financing or put your plans on hold for a while.

This questionaire provides you with a rough guide to help determine your likelihood of qualifiying for this type of loan given the current lending environment. However, it is essential that you meet with a well trusted mortgage professional that can evaluate all the variables to determine whether or not you should even consider this type of loan. If the answer is that 100% financing is not the right choice for you, let that be OK. Focus instead on developing financial plans that can steer you into a home with the "right" loan, even if it means waiting a year or longer.

Fannie Mae and Freddie Mac have many loan programs that can assist borrowers in getting into their first home without taking on unnecessary risks and with loans that make sense. Many cities have government programs that can help you qualify and otherwise offer you other types of government subsidized loans.

Martin Rodriguez is the Senior Loan Officer - President of SCV Loan Solutions. A mortgage planning firm that works in affiliation with the financial planning offices of Total Financial Solutions.

Flow Chart: Real Estate Purchase Transaction

Martin Rodriguez (SCV Loan Solutions) — Mon, 27 Aug 2007 02:29:25 -0500

For those of you that prefer visual concepts, I have prepared a simple flow chart that illustrates the key steps involved in the purchase of real estate.

This illustration is designed to provide buyers with a road map to ownership from begining to end, it is not a detailed list of everything that occurs in a transaction.

I realize there may be some variance from state to state as some states are non-escrow states, but the overall process is generally the same.

If you have any recommedations or see anything that I may have missed please let me know.

Lastly, If you'd like a PDF copy of this, please feel free to email me.

Click here to view Flow Chart.

Roger Waters of Pink Floyd, Rocks in LA tonight

Martin Rodriguez (SCV Loan Solutions) — Thu, 14 Jun 2007 05:59:37 -0500

Roger Waters, the creative musical genius of Pink Floyd from 1965 to 1985, performed tonight at the world famous Hollywood Bowl in front of a sold out crowd of nearly 18,000 fans. The performance was an embodiment of his best work as a member of Pink Floyd along with his solo creations since departing the band in 85.

The US tour began last month in Florida as a celebration of Pink Floyd's Dark Side of the Moon. An album that continues to be on the top 10 list of most selling albums of all time - worldwide. The tour will continue to work its way around the country for the next two months, and If you have ever enjoyed any of Pink Floyds music, you gotta find a way to see this show. It really is awesome!

Everyone in attendance tonight would agree that tonight's performance was an amazing presentation of musical talent and creative expressions choreographed to stimulate all of your senses in true Pink Floyd fashion. The sound was crystal clear, sharp, and loud enough to feel the rocking shock-waves of each beat go through your chest. The visual displays of fire, laser shows, flying pigs, and pyrotechnics kept you craving more as the lights dimmed between songs. At the back of the stage, there was a full width-stage wide, high definition screen that displayed psychedelic images and video footage that accompanied each song. The picture quality was so amazing that at first we thought it was some sort of video hologram image. From our seats we couldn't tell, at first, if the image was projected or real. I've never seen anything quite like this before.

The Hollywood Bowl is by design perhaps one of LA's most acoustically piqued venues, but when you add the rich sounds of Pink Floyd's rhythmic guitars, keyboards, saxophone, and ear piercing background vocalists, you realize how this venue and perfomer compliment one another to give the audience the richest musical experience possible.

The music sets opened with his solo work from his "In the Flesh" album and then proceded to interlace songs from "Dark side of the Moon" and "The Wall". Shine on you Crazy Diamond, Money, Time, Learning to Fly, Brain Damage, Eclipse and more, kept the crowd rocking in awe as the backdrop screen displayed images specifically designed to accompany the melody being played. His ballads Wish you were Here, and South Hampton Dock grabbed you from the inside out and made you sing along with 18,000 fans. Water's then broke out his new music, a song called "Leaving Beirut" which is a song about the hospitality of an Arab family that he met as young man in has travels throughout the Middle East. The song is emotionally and politically charged with socialist views and anti-war images were displayed on the screen with pictures of President Bush alongside Osama Bin Laden and Saddam Hussein. Personally, I struggle with these types of political statements, but they seem to go hand in hand in with most professional musicians these days and their political views are clearly expressed with passion through the songs. While I don't agree with the political view, I appreciate the passion from which the song is written and I understand the message communicated.

The pictures that I took with my cell phone camera are grainy and somewhat of an insult to the multi-million dollar visual displays that were used in the show. Yes. the flying pig was a giant inflattable pig with political graffiti written all over the pig. The pig made its appearance during the song, "Sheep" from the animals album as yes I learned tonight that Pigs do fly.

The Concert started in the twilight hour of 8pm and went on until 11pm Look at how bright the back drop is while its still light out.

Pyrotechnics make the stage explode with the drum beat.

Roger in his full pasion of a song.

The Dark Side of the Moon Prism hung on a crane above the entire stadium. A laser light show projected images down on the crowd.

The Prism turns towards me.

I think this was during Eclipse. Images of Deep space and exploration beyond the dark side of the moon.

Cant remember what song this was, but look how vivid this image is.

Money... The original album was spinning on the screen.

"Grab that cash with both hands and make a stash.."

Note the inflattable floating astronaut that was flying around the stage.. Awesome ...

Ahh yes the flying pig is coming after me.

The pig might debut in this years Macy's thanksgiving parade. Ha ha..

This song describes how I felt about you... "How I wish you were here..."

And remember.. Teacher leave those kids alone.......

Schools Out for Summer: What did your kid learn?

Martin Rodriguez (SCV Loan Solutions) — Tue, 12 Jun 2007 13:13:55 -0500

Yes, this is the shameless plug of an extremely proud dad, but shouldn't we all be proud of our kid's accomplishments.

From Kindergarten to Graduate school, the months of May and June are cornerstone months symbolic of academic achievements and scholastic growth. Graduations are celebrated, report cards are issued and a chapter in a students life is closed, but as parents what does this mean beyond the class room?

How is our kid developing behaviorally? Sociologically and Philosophically?

It used to be that our elementary schools only focused on the core studies of Math, Science, Reading and a few other foundational subjects, but today's student are much more sophisticated and our school system and parents need to look deeper than core subjects to understand how our kids are maturing. I'm a firm believer that the responsibility of developing good moral character and values rests with the parents, but teachers have a great influence and the biggest gains are made when parents and teachers have good open dialogue that works together to steer a child's development.

When you get the right combination of support from parents and teachers behind a kids natural interest's, the possibilities and results are amazing! Such was the case with my 5th grade daughter this year.

My daughter's teacher, Mrs. Smith, (really that's her name - go figure) from James Foster School in Santa Clarita was a most impressive and influential educator for my daughter. Most of us can identify with a teacher or two in our life that we remember forever. Often we can pinpoint something they said or did that molds us forever. I'm pretty sure that I can speak for my daughter and say that Mrs. Smith will be one of the memorable ones.

This year Mrs. Smith gave her class a simple creative writing assignment that started as an art coloring project. She told the class to draw a picture of a jar and then fill the jar with an item of their choosing. The object can be a single item or many of the same item, but the jar must be filled with that item.

Shortly after the class was done with the coloring project, the real assignment began. Mrs. Smith asked a philosopher's favorite question. WHY?

"Write a story telling why you selected that item and what about it makes it special."

The results of giving 5th graders the freedom to write whatever is on their mind eventually became the most telling report card my daughter's ever brought home. My wife and I have always known her letter grade scores, but this assignment helped us confirm where we were with the development of our daughters personal values.

As I looked at all of the other kids jar projects during open house night, I realized what amazing kids we really have these days. The stories they wrote were very telling of what was on their mind. Dr. Phil would've had a field day interpreting these stories. Sure there's always the class clown, but even that kid wrote thought provoking stories worthy of his parents pride.

So as I said at the beginning of this post, it's with the sheer pride of a Dad that I present my daughter's assignment. Keep in mind this project was done in about an hour and was written off the top of her head.

Here's what she wrote:

                                "I Filled my jar with keys because I want to lock the door to bad choices, open the door
                                  to happiness, and unlock and reveal the path to integrity.   With my keys, I would give
                                  each person two keys and take them to lock the door to bad choices. When they realize
                                  there is no path to take, they would unlock a door to happiness and goodness. However
                                  there is a third key, but only one of this key is contained in the jar. This third key
                                  reveals the path to integrity. The path will only open to a person who chooses not to
                                  unlock the door to bad choices when they can. These keys are the better choice, but
                                  you're in control. The choice is yours to make."

So ask yourself, what did your kid learn this school year? Look deeper than their grades. Help them develop their inner self, their self esteem, their values, their ambitions. Let them dream and help them dream bigger. The results are awesome and as parents we owe it to our kids to give them our full support.

Please share your kid's stories and accomplishments. I'd love to hear them. (It helps me sleep better knowing my future is in good hands)

PS. For Privacy and protection I have omitted my daughters name from this post. If you know her and leave a comment, please refrain from using her name.

Santa Clarita: Celebrates Life without Cancer - SCV Relay For Life

Martin Rodriguez (SCV Loan Solutions) — Tue, 05 Jun 2007 19:45:07 -0500

Several weeks ago Dr. Kelly Herta of Aligned Health Chiropractic approached our local BNI chapter (Team Gold) and recommended that we participate as a group in our city's Relay for Life. With Dr. Kelly at the forefront our group began to learn about the Amercian Cancer Society's grass roots effort, which is an event that started in the mid 80's when Dr. Gordy Klatt of Seattle, WA decided to run for 24 hours in an effort to raise funds for his local chapter of the American Cancer Society. In just a few short weeks our BNI Chapter began to raise funds, coordinate schedules for the 24 hour event, and helped to raise awareness about this great opportunity to contribute to the ongoing efforts to find a cure for cancer.

The event was an amazing experience that brought the community of Santa Clarita together to celebrate life in honor of, or in memory of, anyone that has been affected by cancer. With over 10.5 Million cancer survivors and 1.3 million new cases each year, just about everyone has a friend or family member that has had to fight the cancer battle.

The mission and cause for the event is clearly defined, but the core of it is rooted in giving inspiration, love and support to cancer patients and survivors everywhere. The SCV relay for life has become, and continues to be, a catalyst for breathing new life and hope into those people that are currently sufferning with this ongoing killer.

The event opened early Saturday morning with the survivors walk. A parade around the park with cancer survivors providing living testament that we can beat this disease, and that together we will find ways to rid the world of cancer. The survivors shared their story on the center stage and each talked about their own personal experiences of physical and emotional pain. While their stories varied a common bond was prevalent as they all share an amazing zest and spirit for life and in living it to the fullest.

I had the pleasure of meeting some amazing cancer survivors who gave me personal insight as to how this disease affected them and their families, and how it has become their own personal quest and mission in life to stop this disease in its tracks. Their convictions are strong, and they stand ready like soldiers, to help other cancer patients win their own battle. People like, Colleen Shaffer who will continue her own battle with breast cancer everyday for the rest of her life, yet has found ways to take control of her life and turn this disease into a positive energy that can help others. Shortly after her chemo-therapy and radiation treatment Colleen walked 60 miles in 3 days and went on to found an organization called Circle of Hope. The organization's purpose is to serve those who may be under-insured or lack financial resources to get the medical treatment they need and to educate about the fears and misconceptions of cancer. It's the only non-profit organization of its type that serves the North LA county area.

I also met Analisa Marquez O'Rullian whose book "The 11th Hour Miracles" tells her story of beating the odds with Leukemia and describes what it was like for her to undergo a bone marrow transplant. Her story goes well beyond that of medical treatment and the disease itself. It's a story of how her miracle was a spirtual event rooted in family love, her faith in God, and how she worked with committed doctors who were also as driven as she to find a cure.

The entire event was full of people like Colleen and Analisa that continue to sound the drum against cancer until it is gone. The collective energy of this grass roots event has a clear message. "Failure is not an option, we need to stop cancer." Everyone that I spoke to had the same fire in their eyes that tells you how serious they are about this cause.

The festivities of the day continued in a fun and playful way until the main event started at about 9pm. The luminaria walk. This was a solemn and respectul tribute and rememberance to all those who lost the lives to cancer and a chance for all in the community to come together in support of one another. The pathways were lined with candlelit bags that had been decorated by families. People shared stories, they cried, they comforted one another and most importantly they memorialized their lost family and friends.

The Relay for Life is a yearly event in Santa Clarita and it will continue to grow stronger each year as new survivors, families and businesses join together to find a cure so that someday cancer will be viewed as a thing from the past much like the Polio disease.

I urge you that regardless of where you live, find your American Cancer Society and get involved. Check to see if your local city is hosting a Relay for Life and if it is, make it a point to attend and participate. The battle against cancer is not just a medical issue. It is about awareness, support, spirituality and understanding.

In closing, I want to thank all of the people that made SCV Relay for Life event possible and worked so hard to help others. Teresa Kerr the co-chair of this event is always looking for new volunteers to help make this event even bigger and better. If you would like to participate in this event or would like to host a similar event within your own commuity, please click here to contact Teresa Kerr.

Martin Rodriguez
Sage Commercial Capital

Do you want to be President of the United States?

Martin Rodriguez (SCV Loan Solutions) — Sun, 27 May 2007 18:59:44 -0500

Last week my daughter's 5th grade class went on a field trip to the Ronald Reagan Library in Simi Valley, CA. I was fortunate enough to tag along as a chaperone and learn more about one of the greatest President's our country has ever elected.

Regardless of political affiliation visiting this library is a definite must for anyone in the Los Angeles area. The collection of history, artifacts, and memorabilia demonstrates the genuine nature of a young Ronald Reagan, and walks you through the various years of his life on his journey to becoming the unwavering leader that stands up to communism, shuts down the cold war and reduces our federal debt.

Instead of writing this post about the exhibits and galleries found at the library, I want to explore a question that I posed to the 5th graders while at the museum. As we looked at a photograph of Ronald Reagan with his 5th grade class, I asked,

"Do you think that he was thinking of becoming President of the United States back then?" How many of you would like to grow up to be President of the United States?

Surprisingly they all said "No" to this question.

None of them claimed to ever dream of becoming President some day. At first I thought their replies were out of shyness, but after speaking more with them. I realized the responses where driven by other factors. Basically the job of leading our country doesn't appeal to them. Has the Presidency lost its luster? Have political arguments become so aggressive and tainted that we frown at the thought of working as part of our political system?

As Americans we take pride in our freedom and in our democratic policy, yet we aren't encouraging our children to embrace this process. Instead, we criticize, polarize and state opinions in a such a win/lose way that we forget, that the other side is still on our team. Whether you're a Democrat, or Republican the opinions contained within each political arena is all part of a process and that shouldn't be viewed as a bad thing. It's part of what makes us strong!

Later that evening I was telling this story to my friend Jeff Turner who said to me, that from his viewpoint it appears that we just don't speak of the Presidency the same way we did 30 years ago. When we were kids the Presidency was the ultimate job. Every kid dreamed of this role in some way or another. We grew up seeing our parents looking up at our President as a powerful leader, and even though times were different we still had political opposition, bitter debates and strong opinions. Yet, the role of President was a respected one. Somehow we've lost some of that magic today.

Unfortunately, it appears that we're so opinionated that our focus has become shutting down the opposition or if that doesn't work, we withdraw and humbly shy away from political discussions because we don't want to offend others. This is what our kids see.

Be proud to express yourself and acknowledge the difference of opinions that you will have with others. Ultimately someone has to be the leader, why not teach your kid to step up to the challenge.

The headstone above Ronald Reagan's grave site reads,

"I Know in my heart that man is good
that what is right will always eventually triumph
and there is purpose and worth to each and every life."

Let's teach our kids to focus on that which is right, and be bold enough to proudly step up in leadership roles to express their views.

I want to thank the staff at James Foster Elementary school for taking the 5th grade class to learn about Ronald Reagan and all of our U.S. Presidents. I think everyone learned something new on this field trip.

I know I did.

Management: Leaders Pull -- They Don't Push.

Martin Rodriguez (SCV Loan Solutions) — Sat, 12 May 2007 01:58:01 -0500

Whether your business is a one man operation or a corporation that is several hundred employees strong. Getting the right support from those around you is critical to your success. Your staff employees, co-workers, vendors and colleagues each play a critical role, in your success, failure, or the perception that your clients/customers will have of you and your business.

It's no secret that good help is hard to find and when you find it, it's hard to keep. Unless you can succesfully create an environment that makes employees want to work for you, serve you, see you succeed and be a part of that success. In other words, your employees have to believe in you and believe in the work that you do. Good managers understand this concept and know how to lead employees through day to day activities that continually drives towards the goal. However doing this well, goes much further than leadership by example.

How to motivate employees. -- Do --

Know your values and have a clear picture of your vision. Communicate this to employees frequently.
Know your communication style and learn how it may come across to others. Know how/when to adapt.
Communicate your expectations in detail. Then clarify that it is understood.
Communicate the consequences of failure so that employees can correlate it to the value of their work. (I'm not referring to disciplinary action - I mean the direct impact to other co-workers and clients if a job is not well done.)
Challenge employees with difficult tasks that are just within their abilities.
Give employees the opportunity to set completion deadlines (when possible) for tasks, but hold them accountable to their self imposed deadlines.
Celebrate success. Recognize employees that go the extra mile, but keep it in moderation. Success is an expectation, not a surprising result.

How not to motivate employees. -- Dont --

Tell people what to do without making sure they understand the big picture.
Delegate via email without at least having a conversation about what is expected.
Assume employees know what you mean.
Assign tasks beyond an employees capabilities.
Fail to hold employees accountable for substandard performance.
Be disrespectful to employees under any circumstances. Never direct foul language at a person.
Celebrate your own personal success in front of employees, unless it relates to them. Keep your success private or in the appropriate circles.

The key to effective management, is to talk to employees as peers and not to talk down to them just becuase you hold a greater ranking title. Employees know who the boss is and they know that you've got the power. Don't hide behind your title and management power to tell employees what to do. Learn to create opportunities that motivates employees to do what you need, without you having to tell them to do it.

If you do this well, you'll have happy employees that want to see you succeed because they know that as you succeed, so do they. The reward is in the acheivement not the paycheck.

As a mortgage broker my immediate staff is small, but my list of support personnel consists of a long list of vendors, colleagues and other professionals that I need to manage. They're not on my payroll, but my business depends on them. If I want to be succesful, I better know how to manage those that support me.

Paris911: To Protect and To Serve

Martin Rodriguez (SCV Loan Solutions) — Sun, 29 Apr 2007 00:32:58 -0500

On the door of every LAPD police car are the words "To Protect and To Serve", but in the case of former LAPD officer turned Realtor, Connor MacIvor, these words represent a duty beyond that of a law enforcement officer. For him, these are words that describe his work ethic, dedication, and commitment to his real estate clients.

Last week I had the opportunity to meet with Realtor Connor MacIvor of Re/Max in Santa Clarita. This was my first time meeting a fellow Active Rain blogger, and it was a great experience. Within a few minutes Connor and I connected like old friends, we swapped stories from our previous careers, we discussed many of the articles and products that we've read about on AR, and we talked about our respective business models. If you didn't know any better, it would appear as though we'd known each other for years.

What struck me the most during my time with Connor, is how he and his wife Paris built their real estate business upon law enforcement principles of honesty, integrity, and service. Within 2 minutes of walking into Connor's office he had begun to size me up. He asked me questions about my business practices, my background and my experience. He left no doubt that he has a serious commitment to his work, and that he expects anyone he works together with, to also hold the same high standards. Connor explained to me that Police officers in general don't trust anyone. It's not because they want to be skeptical or distrusting of others, but they hold safety and security in highest regard. Police officers are trained to create barriers of defense, and no one gets into their inner circle without passing a personal scrutiny test or somehow demonstrating their trustworthiness.

With these principles at the core of their business, Connor and his wife Paris have tackled the Santa Clarita real estate market with SWAT like precision. Their marketing is elegantly coordinated and specifically targeted to get their brand name out into the communities that they serve. These marketing plans along with their personalized service, creates a client loyalty that rewards them with ongoing client based referrals.

Meeting Connor MacIvor was a pleasure for me and I am grateful for the time we spent together. He's a man of solid character and very genuine, and while he may not be wearing a policeman's uniform when you meet him, you'll know that he continues "To Protect and To Serve". That's a pretty comforting notion for clients that are spending $500-$700k for the average Santa Clarita home.

Connor thanks for the time.

Martin

Emergency Broadcast System: This is a Text !

Martin Rodriguez (SCV Loan Solutions) — Sun, 22 Apr 2007 21:36:43 -0500

The tragic events of Virginia Tech University last week were a horrible tragedy. Our Country continues to mourn the loss of all the students and professors whose lives where robbed short of their full potential.

This post is in no way an attempt to second guess the efforts of any police officer or rescue personnel.

However, the campus police department has come under scrutiny (by some) for their actions and an investigation is under way. Regardless of the outcome of this investigation, there is only one question that matters.

Could this have been prevented? or some how contained?

Again, I'm in no position to attempt to answer that question, but it does raise the question as to how we respond to emergencies and tragedies. Hurricane Katrina, 9-11, Virginia Tech, in all of these cases response times and communication played a key role in the outcome of the tragedy.

The key to successfully handling any disaster, whether man made or natural is to have an early warning system and good preparedness. The U.S.A currently uses the Emergency Alert System, which replaced the Emergency Broadcast System in 1994.

Emergency Broadcast System -a design from the cold war.

The E.A.S. system is nothing more than an enhancement to the E.B.S. system that was developed during the cold war to warn of nuclear attacks. This system allows the President to instantly take over the radio/TV and satellite airwaves to communicate emergency information. (Interestingly enough this system was not used on 9.11.2001).

Many states also have their own emergency broadcast systems, employing items like, air raid sirens that sound in advance of tornadoes, or radio and TV scrolling messages during periods of floods are powerful storms. While these systems have served their purpose, I think its time we catch up with technology and find better ways to disseminate emergency information.

Cell Phones and Text Messages to the rescue.

Just about everyone these days has a cell phone capable of receiving text messages. (even if you aren't paying for a text service, the phone is usually capable of this.) Cell phones with text capabilities are by design poised for immediate dissemination of information. Think about this. How often do you leave your house without your cell phone? Who do you know that doesn't have a cell phone? Sure, there are some people that don't have one, but there's also people that don't have radio and TV's. The mobility and flexibility of a cell phone can allow emergency personnel to send a message directly to you and give you life saving information. Odds are that your phone is with you all day long, unlike a radio or TV that might be turned off.

I don't know enough about cellular technology to comment on how well our current system can handle the load of a National crisis, but the technology is certainly available and we need to put this into use right away. Verizon, Sprint, Cingular, T-mobile and all cell phone carriers are regulated by the FCC, whom controls who and how information is transmitted. Each of these providers are constantly offering a whole host of text services from sports, news, mortgage rates, stock tickers and more. Emergency services needs to be at the top of their list.

I recently heard a radio commercial on how to sign up for wireless amber alert text messages on my cell phone and while I thought this was a great idea and signed up for it. I also thought to myself, why do I need to sign up for this? Just send the message to everyone -- there is a child is in need. Why are we waiting for people to sign up?

It's my understanding that a system such as I describe in this post was being tested at Virginia Tech and there are private companies such as ravewireless that are pursuing a system such as this. Unfortunately the system at Virginia Tech was not activated and was still in test mode. We'll never know how that could have made a difference, but we do know that we can't continue to rely on an emergency broadcast system that was designed in the 60's. We live in a volatile world and information during and emergency is critical. Its time we use our technology to the fullest -- It will save lives.

Martin

Help Me Understand???

Martin Rodriguez (SCV Loan Solutions) — Thu, 19 Apr 2007 12:03:41 -0500

Communication, Communication, Communication.. (or the lack thereof)

This is perhaps one of the biggest problem areas identified by clients, employees and managers in virtually any business. It doesn't matter what industry you're in, effective communication can make you or break you. Good managers recognize the importance of this and they are always striving to improve their communication.

Huh, ah what did you say?

Have you ever delegated a task to another person, only to find the end result resembles nothing like what you expected? Was the task clearly communicated? Did the receiver of your message hear you? Or did they effectively listen to you? The difference being comprehension.
(My wife complains to me about this all the time. I hear her, but I certainly don't listen) :-)

Often we complain about poor communication meaning the message delivered was poor, but instead the problem often resonates within our ability to listen effectively. Our brain can process auditory signals faster than we can speak, therefore its easy for our minds to drift and think of other things even as someone is speaking to us.

As an HR manager, I've managed hundreds of employees and I've been on both sides of good and bad communication. Through my experience, I've learned a few tricks along the way that can help promote clarity when managing important discussions. You can apply this technique in real estate negotiations, mortgage lending, parenting or just about any discussion that requires effective communication.

Help me understand?.

One of my favorite phrases is "Help Me Understand" I use this phrase anytime I need to gain clarity in a conversation, but I also use this phrase to probe and draw out additional information that may not have been originally communicated. For example, when speaking with a client that has a concern, an objection, or a need. The words "help me understand" sends a message that you are genuinely interested in gaining better clarity of their problem or thoughts. Ask this question and then listen carefully. Don't interrupt, just listen. When the person finishes, don't reply with a solution or a suggestion. Paraphrase the main points of the message and then ask for additional clarity about specifics as necessary, once again using the phrase "Help me understand".

Synchronize your mind with your ears.

Since we can think faster than we speak, we must take steps to focus our attention on the speaker.

Clear your mind of distractions and learn to consciously focus your attention on the speaker.
Learn to recognize your own internal cues that will serve as a signal that you are drifting from the speaker.
Paraphrase what you heard by repeating the key points back to the speaker, but do so using your own words.
Like paraphrasing you can also parrot what you heard, meaning you are repeating what the speaker said verbatim. (However, remember that parroting doesn't imply understanding. It only means that you heard what was said, paraphrasing on the other hand does imply understanding)

Once you master this technique, you can get through most conversations by saying, Help me understand, and "So what I heard you say is ....."

A typical conversation between a realtor and client might sound like this:

"Hello, Mr Jones, so help me understand - why do you want to buy a new house?" ............. "So you're buying a bigger house becuase you need more room?" Well, help me understand what exactly was the problem with the old house, was it not enough bedrooms or where you looking for a bigger living room? Oh, So what I hear you saying is that you need a bigger house becuase you want a bigger yard, not necessarily more bedrooms?......"

Do you see how this can work? Help me understand, invites the client to speak openly. All you have to do is take notes and steer the conversation to extract the information that you need. Paraphrasing what you heard ties down the conversation and ensures that clear communication occurred. Never move on to your next topic until you have confirmed that clear communication was both transmitted and received.

As a mortage broker, one of my biggest responsibilties is to have a clear understanding of my clients needs and goals. A minor break down in communication, or a misunderstanding, can cost a client thousands of dollars and can potentially tarnish my reputation as a professional mortgage consultant.

I hope this article is clear and that you understand what I'm saying here. If not, leave a comment with your help me understand question...

Martin Rodriguez
Sage Commercial Capital

Under the Mortgage Microscope: Understanding Points vs. No Points

Martin Rodriguez (SCV Loan Solutions) — Sun, 15 Apr 2007 04:38:56 -0500

Under the Mortgage Microscope: Understanding Points vs. No Points

One of the most common questions that I get as a mortgage broker is, "Can you do a zero point loan?" Of course I can, any broker can do a loan with no points.

The real question is understanding the trade-off between a zero points loan vs a loan where points are paid. (all other things being equal, of course.)

Many "loan shoppers" often focus on this dimension alone and they will run the other way if the lender mentions that a loan has points included. This is short sighted and illustrates a lack of understanding of where the point costs come from, and what benefit (if any) points may have. I am not advocating one way or the other for loans, with or without points, the answer to that question needs to be addressed on a case by case basis. I just want consumers to understand that a zero points loan doesn't necessarily mean they are getting a low cost loan, and they should evaluate all of their loan costs, both with and without points to determine what is best for them.

I recognize a borrowers desire to get a low cost loan. We all want the lowest cost, and best value in anything that we buy. Whether it be our clothes, a car, a house, or in this case a loan. It comes down to doing a cost-benefit analysis that will help borrowers understand what they get for the cost of their points.

Before I explain how to do this analysis, let me be very clear about something. No matter what kind of loan you get, meaning one with points vs one without points. The bank is going to make their profit margin on the loan, - end of story. Pay me now or pay me later, the bank always wins. With that in mind, the borrower has a decision to make. Buy down the interest rate with points or take out a loan with no points.

There are 3 ways you can look at this problem.
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To learn more on how to analyze this problem, you can read the full post here.

Griffith Observatory: One of LA's most distinguished buildings - Inside and out.

Martin Rodriguez (SCV Loan Solutions) — Thu, 12 Apr 2007 02:41:06 -0500

Recently my good friend John Evarts and I visited the Griffith Park Observatory atop the Hollywood Hills.

If you've never been here, this place is an absolute must for any LA tourist or resident.

The views from the observatory are abosultely fabulous and you can see clear across the LA basin from downtown to Catalina Island. (I took this picture from the back of the observatory)

Realizing what a gem this facility is for the city of L.A, John and I decided to co-author a blog featuring the Observatory as one of LA's most distinguished buildings. You can read John's Blog about the exterior of this building and the 5 year re-modeling project here.

In this blog, I will give you the .05 cent tour of the inside of the facility, but do yourself a favor and check out this place next time your in LA.

The Obervatory has 2 floors full of exhibits and astronomical objects that are arranged into several theme featured halls. One of my favorites was the Gunther Depths of Space this hall focuses on the night sky, our solar system, the milky way and galaxies beyond. I could spend all day in this one part of the museum reading about all of the exhibits and the constellations that we see in the night sky. Did you know that Polaris, aka the North Star appears stationary in the night sky? All the other stars appear to rotate around Polaris? Why is this? And how can you easily spot Polaris -- contrary to popular belief its not the brightest star in the sky, in fact its relatively faint. You'll find the answer to these questions in this hall.

There are many other halls downstairs that feature specific astronomical topics, its too much for me to write about here, but you will find "the hall of the eye", "the hall of the sky", "the cosmic connection" and many others.

Downstairs you will also find asteroids and meteorites that have penetrated our atmosphere and have been collected over the years. Some of these shooting stars have some pretty fascinating stories behind them, like the one that struck a lady in Alabama and nearly killed her. The meteor grazed her leg and burned a streak into her leg. Thank your lucky stars!!!

Ok lets get into the really cool stuff, located on the upper level. The main floor has 3 distingushing domes, the center of which is the planetarium which is the focal point of the entire museum.

Inside this dome you can sit back in recliner seats and stare up into the center dome, and watch a presenation called "Centered in the Universe." The star projector in the center of the room will project the night sky on the dome and for the next 30 minutes, you will get the best tour of the night sky you've ever seen. It's abosultely awesome. You'll think you're outdoors looking at the real sky. You'll learn about the early days of astronomy, the constellations, and about key discoveries that have enabled us to better understanding the depths of space. If you think that Planet Earth is amazing, this show will give you a whole new appreciation for how small we really are and how enormous our solar sytem and galaxy are. Its more than you can wrap your brain around..

The center dome is flanked on either side by two other domes that each have specialized high power telescopes that are available to the public for free viewing of the sky. The west dome has a solar telescope that allows you to see solar activitiy such as solar flares and sun spots on the Sun. The east dome is used primarly at night and is capable of focusing on any celestial event that is visible from the LA area. This telescope is open until 10pm and you can see the moon, the stars, nebula's, galaxies and more. You'll have to check with the observatory to find out what this telescope is focused on, for any given night.

If you have young kids that are curious about the night sky, bring them here. While, most of the displays are geared to teach children of all ages, younger kids might find it boring, because there is a lot of reading to do at each exhibit. Keep in mind, this isn't a Disneyland exhibit. Its a real working musuem, so expect to take your time learning and thinking.

Again if you've never been here, please check it out next time you visit LA. 7 Milliion guests have visited the observatory since its opening in 1935 so there really is something here for everyone.

If you've already been here, let me know what your favorite part of the musuem is? I'd love to hear your comments on this Shining Star located in the Hollywood Hills.

My lender ran my credit report and now the whole world knows..

Martin Rodriguez (SCV Loan Solutions) — Wed, 14 Mar 2007 06:48:10 -0500

Here's a simple thing you should recommend to all of your clients even if your aren't the one running their credit report.

Tell your clients to call 888-567-8688 or go online at https://www.optoutprescreen.com and have them sign up for this free service to stop the credit bureaus from selling their personal and private information. Everyone seems to know the "do not call" list however it appears that very few people have heard of the opt out list for credit reports. Signing up for this list ensures that your credit profile and personal information is not sold by the credit bureaus to 3rd parties.

With all the identity theft and credit fraud that goes on in this country, we as responsible mortgage brokers (or Realtors) should be protective of our clients private information and should take every step possible to ensure their privacy. In addition to having your clients sign up for this service, here's a simple checklist you can use to make sure your doing your part in protecting client's privacy.

Shred all unnecesary docs that have, address, soc #'s or acct information
When you go home at the end of the day, do not leave docs with client info on your desk. Clean your desk and lock your files.. (don't leave things out for the cleaning crew)
Make sure your screen saver is password protected.
Password protect (or encrypt) any email that has private client data.
Be mindful of conversations you have with colleagues about clients while in public places, you never know who is sitting in the next restuarant booth over.
Make sure your staff is doing all of the above.

I'm sure you're probably doing all of these items already, however the biggest vulnerability comes from suport personnel and staff, who may not share the same level of responsibility as you. Review these simple items with them and don't tolerate dis-organization that can comprise a clients personal information.

Ohhh and don't forget.. Call that phone number for yourself.. Sometimes we take care of everyone else and forgot about us..

Evocative Expressions: How does your logo sell you?

Martin Rodriguez (SCV Loan Solutions) — Mon, 12 Mar 2007 06:18:46 -0500

Ever since the days of the wild, wild, west branding and logos have been a common way of identifying what is yours. Whether you're branding cattle, products or services, your brand communicates your identity and is perhaps one of the most important pieces of your marketing plan.

So how do you know if your logo, your trademark, your brand represents you well? Do consumers instantly know who you are just by looking at your logo? Everyone knows the swoosh, the golden arches, the apple with a bite. So how do you get your logo recognized and how do you brand yourself within your sphere of influence and beyond.

To get a better understanding of branding, I interviewed CEO/President of QM Design Group, Hillary Broadwater. Hillary has 12 years of experience designing logos and helping companies brand themselves in ways that challenge the competition and position them as recognizable entities.

"Logo's and Branding is as much an art form as it is a science", say's Broadwater, " in a world of do it yourselfers you can't expect to slap something together with pretty colors and a picture and expect that it will represent you". You first need to understand what you want to communicate, how you want to communicate it, and how communication works in that industry. Once you know this, then you can begin to construct a logo that sends the right message and fits into the big picture of your marketing plan.

Be Evocative to Elicit Emotion

If you plan to do a lot of online marketing, you need to have a logo that says "click here". Google searches are browsed from top to bottom in a matter of 3-5 seconds. That's all the time you have to get a consumers attention to look at your website; and if you're successful in getting them to click on your site you have only a few more seconds of time to engage them in your product so they will want read on. Your logo needs to be evocative, it needs to stimulate the senses and stir emotions so the reader can identify with the company it represents. The same science applies to billboards and magazine ads. Consumers have a short attention span and you better jump off the page or you'll be passed up.

Broadwater stresses the key to success is not necessarily in creating a single logo design or some catchy piece of marketing. It's about creating a common thread in all of your marketing efforts that continuously communicates the same message to your customer. Your website, your brochures, your letterhead, everything that touches your customer must have the same look and feel.

4 Elements of a Good Logo.

Communication - when asked to define Jazz, Louis Armstrong said "you'll know it when you hear it" "We feel the same way", she says. "What we can definitely say about this is that a good design is not about fashion or style, eventually that can fade. Your logo needs to be able to withstand time, it needs to be distinctive and the graphic design needs to have colors that stimulate a desired response." We live in a world of over-communication and excessively cluttered media, the only way to combat this condition is through design that clearly distinguishes the organization.

Image - "Image is everything" remember those words? Over time all products and organizations develop personalities and life-like qualities. Your image needs to reinforce the positive qualities of your firm. It needs to strengthen the weak ones and remove any doubts about your firm's ability to conduct business. Staying on top of your image is how smaller firms get bigger and how big firms stay on top.

Value - What's the value of your logo? As we described in the previous point, the value of your logo is in how effective it communicates your image and corporate presence. A firm with a highly recognized logo, raises its stock considerably because of the notoriety associated with that brand. For smaller firms the value is in developing a logo that has a high R.O.I. and suppresses the competition.

Flexibility - Your logo needs to be able to grow and adapt with your organization. Business is always changing and while your logo is likely to remain constant, it needs to be flexible enough to allow for some elements of change.

Clearly, there is more to creating a good logo or brand than what I have covered in this post. If your goal is to create a good impression or a buzz about yoiur business, then take the time to hire a professional designer that understands how to do this well and get professional help.

QM Design Group is based in Santa Clarita and has an extensive client list which includes Discovery Education, a division of Discovery Communications, Criteria Corp and many other firms in a variety of industries.

On a personal note, the time I spent with Hillary really helped me understand how I can better position my mortgage business at Sage Commercial Capital. She understands how to dissect the competition and create a strong brand value proposition for both, myself as an individual, and as a team member of Sage Commercial Capital.

NASCAR en Espanol !!!!

Martin Rodriguez (SCV Loan Solutions) — Mon, 05 Mar 2007 22:27:49 -0600

Boogity, Boogity, Boogity.. This post is hotter than a hot lap in Daytona.

This weekend the NASCAR Busch series hosted its 3^rd race in Mexico City, with the running of the Telcel Motorola 200. Clearly NASCAR is trying to appeal to a giant Hispanic fan base of more than 20 million people -- nothing wrong with that.

Only the targeted fan base, despite what NASCAR wants you to believe, is not in Mexico it's actually here in America. Think about it, the fastest growing demographic in the USA is the Hispanic population. All but 3 of the sponsors in this race were American companies who do almost all of their business here in America. The broadcast this weekend was televised in Spanish on ESPN's primary broadcast channel in high definition, while its English version was relegated to their secondary channel ESPN2.

Now I am not opposed to appealing to a broader demographic. I speak Spanish myself and I'm of Hispanic descent, but you don't just shun your primary fan base to some other secondary channel to make way for the latest flavor of the week. Perhaps if this was baseball or soccer it would make more sense, at least these sports have established themselves in these other countries, but NASCAR is a sport that's often billed as the good ol southern boys sport - It's American as apple pie.

So, is this appropriate? At what point do you change your established ways, your values, to accommodate a prospective client or customer? If NASCAR is trying to appeal to the Hispanic markets, why don't they broadcast the entire season in both Spanish and English? At least this would make sense and it would communicate their intentions to invite a Hispanic following for the sport. However, trying to switch your broadcast from English to Spanish for one race isn't attracting a new fan base; it's being phony and deceptive to its own roots.

What next? A Japanese broadcast from the Fuji International Speedway?

What do I know, I'm just a spanish speaking mortgage broker trying to watch every race that I can.

Under the Mortgage Microscope: Prepayment penalties understood.

Martin Rodriguez (SCV Loan Solutions) — Wed, 28 Feb 2007 03:12:49 -0600

Despite consumers dislike for prepayment penalties lenders often make them a requirement of the loan. Nobody wants one; nobody likes them. So why can't we just get rid of them altogether? My rule of thumb is to generally avoid prepayment penalties when possible, but is there ever a time when it's advisable to accept a prepayment penalty?

To answer this, we need to look at the big picture so that we can better understand the role of prepayment penalties in a loan. Sure, prepayment penalties exist to protect the lenders profit margin on a loan, but a closer look reveals that the driving force behind prepayment penalties is the need to lend in a marketplace that would otherwise not exist.

Say for example a lender has $25M to lend. They can choose to lend that money to borrowers with strong credit scores and make a profit margin of 2-3%, or they can choose to lend this money to higher risk - low credit score borrowers and make higher profit margins of say 4-5%.

Herein lays the reason for the prepayment penalty. Without a mechanism to tie a borrower to a loan for some pre-determined period of time, the lender bears the risk of losing the intended profit margin which is the driving force behind their willingness to provide loans to individuals with less than perfect credit histories. In other words, why lend money to higher risk borrowers if there's no additional gain.

It's for this reason that sub-prime loans contain a pre-payment penalty. However the penalties are not exclusive to the sub-prime borrower. Often you will find A paper borrowers that have a penalty. In these cases it can be for other reasons. Remember, just because a borrower has "A" grade credit it doesn't mean they qualify for an "A" grade loan, many other factors are in play. The type of income documentation provided, and the loan to value ratio, are some of the reasons why an "A" borrower may have a loan that requires to have a prepayment penalty.

So Should I accept a prepayment penalty?

No. Avoid prepayment penalties any time that you can. Remember, the penalties are there for the lenders sake not yours. Sometimes you will get a lower interest rate for accepting a penalty, but this rate reduction needs to be weighed heavily against your ability to get out of this loan if necessary. Most people can reasonably forecast their lives for the next year and a 1 year prepayment penalty is pretty safe bet. However, anything longer than a year has too much uncertainty. Take into consideration that a family hardship, the loss of income, or any unexpected reason requiring you to sell or refinance the property will likely cost you thousands of dollars if you trigger a prepayment clause. Therefore the savings associated with a rate reduction will be eaten away by the penalty should you trigger it.

If your credit score and borrowing situation is such that you can't get around a prepayment penalty, then you have no choice but to accept it. However, before you accept a penalty, you need to be certain that you understand it and can live with the loan as it is for the duration of the penalty period.

Generally, there are 2 types of prepayment penalties, Hard and Soft and they can range from 1-5 years in length.

A hard penalty means that if you refinance or sell the property, the penalty will be invoked and you will have to pay the lender..

A soft prepayment penalty means that the borrower can sell the property without penalty however if they try to refinance the property, the penalty will apply.

So needless to say prepayment penalties will always exist as long as there is a market for lending to anyone other than the perfect borrower.

Mommy can a BLOG really eat you?

Martin Rodriguez (SCV Loan Solutions) — Tue, 20 Feb 2007 05:53:54 -0600

I recently wrote my first post in AR and immediately witnessed the power of "The BLOG".

But what exactly is a blog anyway?

I don't know that I'm qualified to say for sure, but I'm pretty sure it has a heart, a brain, and it permeates my computer every night. It's kind of scary because its growing bigger and BIGGER everyday and I don't know what to expect everytime I approach it.

Yes, I know you can't help shake those images of the 1958 Alfred Hitchcock movie "The Blob" (Thats what I thought first time I heard the word Blog.) but come to think of it, "A Blog" is not to far removed from "The Blob". Only in this case, this monster is a good thing. (most of the time).

So how do you contain this beast?

Sure by now you know that a Blog is an electronic diary of sorts. A compilitation of topics for discussion, and an open forum to expand your mind through creative writing experiences. A blog is testimony to the power and effectiveness of the rapid growth of the internet and how we use it in commerce today.

Yesterday, Laurie Manny wrote an excellent Blog titled "The Featured Post" where she gave some excellent tips on how to write good front-page worthy and thought provoking blogs. (A must read for anyone new to AR) In this post, there is a comment by Tony Marriott where he wishes that "Blog" was recognized by the spell checker. Interesting comment I thought. The reason Blog is not in recognized is because the word didn't exist when Microsoft released its previous version of the MS dictionary. (They finally got it in this last realease.) Now that's amazing to me, that a segment of the internet has grown so rapidly that even Microsoft the "Goliath" hasn't been able to keep up with the changes.

The blogoshphere is growing at such a rapid pace, how is one supposed to wrap their brain around it all and keep it in check? How do you extract the information that you want and need without going crazy and most importantly without crossing the line where productive research becomes counterproductive.

Harness the Blog.

You need to know the space you play in and you need to know why you're here. If active rain (or blogging in general) is something you do as a favorite past time in lieu of prime time TV. Great! Stay as long as you can, just don't oversleep in the morning. I guarantee the content is better than anything you'll find on the tube and you'll be better all around for it.

If you're here to research a particular topic or engage in a specific dialogue with another member. Then stick to your plan, take care of business and leave. (you can come back during prime time) Don't get distracted or divert your attention into reading a bunch of other posts and comments that aren't directly related to the reason you came here to begin with. Priortize your time.

AR should be an intrical part of your marketing plan, your personal education and business growth, but even the best programs can work against you if it means that a client is calling and nobody is answering. Pick up the phone.

It'll still be raining here when you get back.

Martin

BNI – Forget the referrals.. This is about resources and power.

Martin Rodriguez (SCV Loan Solutions) — Fri, 16 Feb 2007 03:33:25 -0600

As one of the chapter presidents for BNI, I can testify to the power and effectiveness of network marketing and if you're not already involved in a networking group, I encourage you to check out your local BNI chapter. The objective of any networking group is to grow your business through network referrals, but BNI's slogan is "Givers Gain" meaning the more you give unto others the better you are for it; and (in time) it will all come back to you. This can probably be said about any capacity in your life and certainly a good motto to live by.

"However there's a valuable and intrinsic component to membership that is often overlooked and has nothing to do with giving or receiving referrals." That's with this post is about.

It's about the ability to extend services to your clients 2 or 3 levels deeper than you otherwise could.. It's about being a resource to your clients in a field that you personally have little knowledge of and being able to sign your name to another person's work. In a sense you are passing your equity credibility to another business owner.

Here's a few case and points.

One of our key chapter members, Sonia Stodden, of Denny & Company, a CPA firm in Valencia, CA., recently explained to our chapter that our community of Santa Clarita had been accepted by the state of CA (starting in 2007) as an enterprise zone. What this means is that business owners may be eligible for specific tax credits that can total into tens of thousands of dollars.

Talk about finding a gold nugget!

I don't know anything about tax laws and write offs, especially as it relates to businesses, but just think how valuable this tip can be to one of your clients.

Come Together

Property manager John Evarts, of Classic Real Estate, has developed extensive relationships with key accounts such as Brian Grant of the Masters Touch, Steve Killian's home repair and GB Lock and safe. However, the relationship goes much further than just referring business to one another. When John calls any of these 3 companies, they can act as his eyes and ears when they enter a tenant's home on a service call.

For example, Steve may be on a call to change air filters, but if he goes into a property and see's that it's been trashed inside, you better believe John will be notified and in turn the landlord will be advised. Now how's that for added value to John's client the landlord? It doesn't matter if John ever gets a referral from these companies. The value in having them report their findings back to him and knowing that he can depend on them is worth just as much as any referral he could ever get.

I can go on and on about the dynamics of BNI networks and how they add value to your business. Sure you can create these types of relationships outside of a networking group, but it's the weekly structured meetings that accelerate and sustain these relationships for the long haul.

So if you're on the fence about joining BNI, think of how much added value you will provide to your clients when you can solve their problem in a field that you don't even work in.

That's how Givers Gain.
Thanks Team Gold for all you've done for me.