Hawaii Randy's Blog

Mortgage Loan Officer Licensing

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Wed, 09 Dec 2009 11:19:21 -0600

New federal law requires states to have licensing laws for loan originators or they will fall under a HUD back-up system. Hawaii introduced a new state law to take effect July 2010 (Senate Bill 1218, SD2, Act 32). It exempts Bank employees but covers almost everyone else. A nice thought but a long way from what is needed.

In my opinion anyone who originates a loan in the state of Hawaii should have to be licensed by the state; banks included.

They should be required to complete an education process, pass a test and have continuing education requirements. To have a license they need to demonstrate at least a basic understanding of the process and laws.
They should be held to a standard of honesty. No deceiving business practices allowed.
Bank employees should be held to the same standards. Even though they are federally regulated, consumers should have local recourse.
Mainland lenders should have a loan officer or a broker with a state license and knowledge of our state laws. When a consumer signs a contract, someone should be there to explain it that is knowledgeable and accountable.

I have seen way too many dishonest and incompetent loan officers out there. It is like the wild west when you try to get a mortgage and that should no longer be tolerated.

I think a great starting point would be to hold mortgage loan officers to the same standards as real estate agents. When a consumer has a problem with a real estate agent, they have several local courses of action they can take.

The local Board of REALTORS® has a few avenues if the agent is a member of the Board.
- Professional standards complaint.
- Mediation
- Arbitration
- Ombudsman service
The state of Hawaii has a few more avenues through the Department of Commerce and Consumer Affairs.
You also have the court system.

Real estate agents are required to have a basic knowledge of the process and laws before they are even eligible to get a license. Loan officers have no education requirements in the state of Hawaii. Many working at the banks or out of state lenders do not even need a license. In many cases loan officers exercise dishonest practices while breaking no laws, leaving the public little or no recourse. Our state license law for real estate agents on the other hand has specific language about honesty and disclosure. When a more egregious instance with a bank loan officer happens, the consumer needs to file a federal complaint. Wow that will slow you down.

Here are a couple of the practices I see on a regular basis that if something similar was done by a real estate agent, a consumer would be able to go after them locally. In fact our own industry through the Board of REALTORS® would assist the consumer.

Bait and switching. Offer a ridiculously low interest rate to secure the client. Then at the last minute when they do not have enough time to shop elsewhere stick them with a much more expensive loan. (Higher interest, bigger down payment, much higher closing costs, and pre-payment penalties). This practice is commonly used to steal clients from other lenders and brokers.
Bogus loan approval letters.
- Issuing a loan approval letter to a buyer that is not credit worthy. The seller is then tricked into removing their home from the market. The seller incurs costs such as surveys, termite inspections, repairs, carrying cost (mortgage payments, utilities, insurance, taxes, association fess, etc.) and escrow fees. The buyer pays lender fees, appraisal and home inspection costs. The buyer and seller have also made moving plans. I have seen a few examples where the seller moved, sometimes out of state. The loan officer then shops around trying to find someone to take this loan. If they are successful they hit the buyer with any or all the things listed in item #1. If they fail the loan officer walks away and leaves the buyer and seller devastated. In a couple of cases I have seen, the buyer now is without a home and has to scramble to keep from being on the street..
Placing consumers in less than attractive loan programs. Taking a client with excellent credit and placing them in a loan product that has higher closing costs and pre-payment penalties, because it is more profitable for the lender or the loan officer.
- The one that makes me sick is where they take a buyer who is VA eligible and tell them they either do not qualify for a VA or they have a better program and put them in a very expensive product with hard per-payment penalties. If the buyer is active duty and gets deployed or transferred, they are stuck! I saw a case where they were hit with big pre-payment penalties on two ARM mortgages that the rates were climbing and they have no way of making the payments. (The original interest rate and closing costs were much higher than they could have gotten from a local bank on a VA loan at the time). Nice way to treat someone defending our country!
Having buyers falsify loan applications, allowing the loan officer to sell them a product they are not qualified to get. (This one is getting some folks put in jail, thank goodness)

I am currently working with a couple of my area state legislators to introduce legislation this next session to begin to tighten these standards. I am sure it will not happen in one session, but we need to start.

Please don't tell about bad real estate agents as a defense for not improving mortgage licensing laws. I have always been an advocate of tougher standards for real estate agents and have written many times about that topic. I feel that if you are going to represent a consumer in the most expensive purchase of their life, you need to be competent, honest and held to the highest standards. In other words you should be a professional.

What Are These Lenders Thinking?

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sun, 06 Dec 2009 13:05:52 -0600

Short sales and foreclosures in most cases are still taking forever to be resolved. Lenders are losing many millions upon millions of dollars in the property value of these assets. Or are these lenders completely incompetent or do they know something that would appear to defy the normal economic laws?

I have seen properties take many months and in some cases a year or more to sell even after a solid buyer is secured. Buyers get frustrated with the delays and walk away. Those who are willing to wait it out are not willing to pay as much. By the time the property actually sells, it most likely dropped further in value than reasonable and devalued homes in the area.

It is surprising that some enterprising law firm hasn't figured out a way to sue on behalf of the communities where they are negatively impacting property values.

Just a parting thought. The industries that are in the most trouble and have caused the most harm to the public are heavily government regulated.

Will The Holidays See the Normal Real Estate Slow Down on Oahu?

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Fri, 27 Nov 2009 00:24:30 -0600

In Hawaii we do not see the extreme winter slow down as in parts of the mainland. The weather is nice year round here. But even with that said the holiday season usually sees a lull in real estate activity.

This year may see the trend bucked a bit. The last couple of months, inventory in some of the communities I service have dropped considerably. Interest rates with discount points at local lenders, are bouncing between 4.5% and 4.75% on a 30 year fixed. Add to the mix federal tax credits of $8000 for first time buyers and $6500 for repeat buyers. You may be seeing the forming of a perfect storm.

Buyers are finding homes at great prices and attractive financing. They are however finding less of them to choose from each day in many parts of the island. We are also seeing prices beginning to climb for the first time in awhile in some parts of the island.

My normal advice to sellers is to wait until the beginning of the year to put their home on the market. This year the conventional wisdom may possibly be out the window. December looks to be a good month for both buyer and sellers.

Buyers, who were going to wait until after the first of the year, may want to start their search now. Sellers who are getting their home ready for sale may think about jumping in the market now. The lack of inventory in many areas will put them in a more favorable position.

If you are thinking of entering the real estate market on Oahu, please contact me for a free consultation.

Mililani, Hawaii - Real Estate Sales Activity for October 2009

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 19 Nov 2009 13:05:16 -0600

This Mililani sales report covers zip code 96789 which covers both Mililani Mauka and Mililani Area (which includes Mililani Town, Launani Valley and Waipio Acres).

Mililani real estate is beginning to pick up again. We are still seeing good real estate activity in the Mililani area. The market is beginning to shift back to a seller's market for the first time in awhile. Inventory levels are a fraction of what they were even a few months ago.

A few dynamics in the area: Castle and Cooke has finished selling new homes in Mililani Mauka. We are continuing to see troop movements at Schofield Barracks, which is contributing to the movement of inventory in Mililani. Many troops returned for Iraq and Afghanistan putting pressure on the rental market and entry level property sales.

Single Family Homes (resale): Average sales prices in Mililani Town and the valleys stayed are down from the same time last year. Although we are seeing things pick up within the planned community of Mililani Town, the valleys are still sluggish. Mililani Mauka has seen average sale prices begin to increase the last couple of months. The inventory levels have dropped lower than we have seen in a long time in Mililani Mauka and in Mililani Town, which are putting pressures on the prices.

Buyers will find this to be a great time to get in the market.

Prices have stabilized and are seeing pressure to increase.
Interest rates are at historic low levels.
Federal tax credits have been extended for first time buyers and are now available to all buyers that meet the income requirements (most buyers)

Sellers will find this a great time to list their home.

Inventory levels are low giving them less competition.
Buyers have incentives to buy now.
Prices have stabilized.

Condo and Townhouses (resale): Sales volume and average sales prices in Mililani Town and the Valleys are picking up. Although they are down from this time last year, with the lowered inventory levels we are seeing things picking up the last 3 or 4 months. The valleys are not seeing as much activity as within the planned community, but as the inventory levels have dropped in Mililani Town and Mililani Mauka buyers are beginning to look in the valleys again for value.

Currently Active for Sale (November 17, 2009):

31 Single Family Homes - Mililani Area
12 Single Family Homes - Mililani Mauka
55 Condos/ Townhouses - Mililani Area
15 Condos/ Townhouses - Mililani Mauka

Currently in Escrow (November 17, 2009):

24 Single Family Homes - Mililani Area
23 Single Family Homes - Mililani Mauka
39 Condos/ Townhouses - Mililani Area
16 Condos/ Townhouses - Mililani Mauka

For the Month of October 2009 - Sold Resale Homes
Single Family Homes - Sold
	Number	of	Sales	Average	Sales	Price
Area	2009	2008	% Change	2009	2008	% Change
Mililani Area (Mililani Town, Launani Valley and Waipio Acres)	5	14	-64.29%	$480,000	$536,103	-10.46%
Mililani Mauka	8	11	-27.27%	$683,250	$667,363	+2.38%
Year to Date Ending October 31st - Sold Resale Homes
Single Family Homes - Sold
	Number	of	Sales	Average	Sales	Price
Area	2009	2008	% Change	2009	2008	% Change
Mililani Area (Mililani Town, Launani Valley and Waipio Acres)	74	124	-40.32%	$518,085	$567,164	-8.65%
Mililani Mauka	90	104	-13.46%	$672,170	$682,327	-1.49%
For the Month of October 2009 - Sold Resale Homes
Condos and Townhouses - Sold
	Number	of	Sales	Average	Sales	Price
Area	2009	2008	% Change	2009	2008	% Change
Mililani Area (Mililani Town, Launani Valley and Waipio Acres)	18	17	+0.06%	$269,666	$312,120	-13.60%
Mililani Mauka	11	6	+83.33%	$308,363	$330,000	-6.56%
Year to Date Ending October 31st - Sold Resale Homes
Condos and Townhouses - Sold
	Number	of	Sales	Average	Sales	Price
Area	2009	2008	% Change	2009	2008	% Change
Mililani Area (Mililani Town, Launani Valley and Waipio Acres)	127	163	-22.09%	$277,051	$312,011	-11.20%
Mililani Mauka	93	90	+0.03	$314,572	$336,453	-6.50%

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

Be Careful What You Send Through E-mail

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Mon, 31 Aug 2009 12:48:48 -0500

This may sound like e-mail 101, but I am seeing common mistakes daily.

There is a thing called BCC (Blind Carbon Copy). When sending to a large list, use it. Unless there is some reason to share the e-mail addresses of everyone on the list to each other. This is a common mistake that is among the most annoying. If you are reply to a message like that instead of using "Reply to All", hit "Reply" unless everyone on that list needs to see your response.

I get messages from real estate agents and loan officers that are spamming me. They CC a million people and of course everyone on that list now has the complete list. So as you may have guessed, several are annoyed by the spam and "Reply to All" to voice their annoyance. I now have received a dozen Spam messages and responses. A few others see this big list and think SHAZAM! They now have a great list to send out information on their business. So now a few of them use the same list to also Spam us. Out of that group because they hit "Rely to All", the complete list appears again and the cycle continues.

Even more aggravating; there are those on the list who now believe I have some relationship with one or more people on the list that the original sender included. If someone on the list is now sending vulgar stuff you are now part of their group. They may have even added more names to the list.

When responding back and forth between more than one individual; be careful not to send the wrong stuff to the wrong person. I got an e-mail this morning from a real estate agent I am in a transaction with. In the confusion of all the back and forth messages the agent replied and inadvertently sent me a string of messages with their client. I now have information about the client and the transaction that their client that was never intended for my eyes. If that information were later used against their client, could get the agent in a ton of trouble.

So be careful what you send via e-mail and how you send it. Also be careful what you say when you post a reply. Everyone will be able to read it.

Hawaii July 2009 Sales Figures

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sun, 30 Aug 2009 14:07:47 -0500

Last week I heard multiple news reports about the drop in property values in Hawaii since last year. The reports stated that we have the biggest drop in value in the nation of all major markets. According to the reports you would think we were in a freefall compared to the same period last year.

What the numbers show is that the neighbor islands did take a pretty big hit, but Oahu (Honolulu County) which accounts for a majority of the sales activity held is values much better.

Here are the numbers posted by the Hawaii Association of REALTORS® per the MLS systems.

2009 JULY HAWAII REAL ESTATE MARKET REPORT:

Single Family Homes

Units Sold

County	2009	2008	% CHANGE
Hawaii	117	100	17
Kauai	27	31	-12.9
Maui	57	97	-41.2
Oahu	265	251	5.6
Totals	466	479	-2.7

Median Sales Price

County	2009	2008	% CHANGE
Hawaii	260,000	299,000	-13
Kauai	450,000	595,000	-21.7
Maui	532,000	610,000	-12.8
Oahu	595,000	620,000	-4

--------------------------------------------------------------------------------

Condominiums

Units Sold

County	2009	2008	% CHANGE
Hawaii	33	31	6.5
Kauai	15	15	0
Maui	69	63	9.5
Oahu	327	365	-10.4
Totals	444	474	-6.3

Median Sales Price

County	2009	2008	% CHANGE
Hawaii	265,000	344,000	-23.7
Kauai	525,000	435,000	20.7
Maui	350,000	575,000	-39.1
Oahu	312,000	329,000	-5.4

*Information provided by Hawaii Association of REALTORS® and Title Guaranty is deemed to be accurate, but not guaranteed.

Your Blog Can Get You Noticed

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 27 Aug 2009 12:01:20 -0500

I got an e-mail the other day from my Board of REALTORS®. As I began to read the message they referenced one of my blog posts. The immediate thought I had was oh no, did I say something wrong. I am pretty careful about the usual stuff.

I never mention names, just situations.
I am careful not to violate any copyright laws.
I check my facts for accuracy.

After reading only the first sentence or so, my mind began racing with thoughts of what I may have done wrong. If the Board is contacting me about a blog post it must be bad.

To my surprise the message was asking me permission to use one of my recent posts to educate the members.

Are You Really a REALTOR®?

Yesterday the Honolulu Board of Realtors® weekly electronic newsletter included my blog post for all the members to read. That was completely unexpected.

When you post articles on the internet, it can get you noticed.

Why Use a Full Time Real Estate Agent?

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Mon, 24 Aug 2009 03:42:06 -0500

I get calls from buyers whose real estate agent told them to call me to see one of my listings. Their agent can't make the appointment or show the property because they are at work (their real job).

If that buyer finds a property they like, their agent is not qualified to write the offer. They did not examine the property for potential issues and needed addendums. Many times they can't even be reached to get the offer written in a timely manner. You can almost guarantee they do not know the market or are even proficient in contract writing.

If they work a regular job elsewhere, they may not be available to attend the home inspection or the escrow signing. In my experience they will not be attentive to the escrow process, will blow the time-line and will be impossible to communicate with. Yet somehow they feel they will have earned a commission.

When working with me, buyers and sellers get an agent who does not cut corners. answers the phone, knows the market and truly cares about my clients and will always put your needs first.

Here are a few of the things I consider standard service. Very few agents in my area are offering these services to their clients.

For my sellers:

Quality pictures including wide angle.
Your home posted in the MLS and many websites (too many to list).
Color flyers and brochure box in front of listing (where allowed).
A pledge of services.
A website with a domain name and sign with the web address.
Virtual tour.
Regular Sunday open houses.
Broker's open houses on the monthly date for the area.
An electronic lockbox that tracks everyone who enters the home.
Regular communication with sellers including comparable market reports.
Print ads.
The property promoted at regional REALTOR® meetings.
E-mails to top producers in the area.
Benefit of the market knowledge of one of the top, full time licensed brokers in the area and his support team.

For My Buyers:

Free buyer's representation.
I will schedule and accompany you when you preview homes and point out potential red flags.
Market analysis and public records check of any property considered for an offer.
Prepare all documents and explain them in detail. You sign nothing you do not understand.
Negotiations by an experienced licensed broker.
Manage the entire escrow process.
Help with referrals of other professions such as inspectors, loan officers, etc.
Accompany you to the escrow and mortgage signing.
I continue to work with you after the transaction if any issues or questions pop.

Many agents have not done well in the market and have cut back on expenses. That is the reality. The problem is clients are buying and selling the most expensive thing own or will own. Why should they entrust it with an agent who does not have enough money to properly market their home or have the time to properly represent them?

I will finish this with a statement I have made many time in the past. Real estate is a full time profession. You cannot sell real estate part time and do it well. Theoretically it is possible, I am just not seeing in real life.

2009 Hawaii Real Estate Tax Rates

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sat, 01 Aug 2009 18:53:53 -0500

Hawaii has some of the lowest real estate taxes in the country.

Beside being in paradise and having limited amounts of land, which put pressures on the real estate values, we do have very reasonable real estate taxes.

The reason for this is that we do not fund our school system through real estate taxes. Schools are funded by our state general fund. Real etate taxes pay for county government services.

In parts of the country folks will let their land go for back taxes. That is unheard of here. When the economy took a big tank on the mainland, we felt it here, but nothing like some places did.

What I tell folks is that we sell dirt. It is some of the most expensive dirt on the planet and we are not making any more. (except on the Big Island, courtesy of the volcano).

Here are the 2009 Hawaii Real Estate Tax Rates for each county:

	Honolulu County (Oahu)	Tax Rate Per $1000 Net Taxable Property*
1	Residential	$3.42
3	Commercial	$12.40
4	Industrial	$12.40
5	Agricultural	$5.70
6	Preservation	$5.70
7	Hotel and Resort	$12.40
9	Public Service	$0.00
0	Vacant Agricultural	$8.50

	Maui County	Tax Rate Per $1000 Net Taxable Building	Tax Rate Per $1000 Net Taxable Land
1	Improved Residential	$4.85	$4.85
2	Apartment	$4.55	$4.55
3	Commercial	$6.25	$6.25
4	Industrial	$6.50	$6.50
5	Agricultural	$4.50	$4.50
6	Conservation	$4.75	$4.75
7	Hotel and Resort	$8.20	$8.20
8	Unimproved Residential	$5.35	$5.35
9	Home Owner	$2.00	$2.00
0	Timeshare	$14.00	$14.00

	Kauai County	Tax Rate Per $1000 Net Taxable Building	Tax Rate Per $1000 Net Taxable Land
1	Single Family Residential	$4.25	$3.95
2	Apartment	$7.90	$6.90
3	Commercial	$7.90	$6.90
4	Industrial	$7.90	$6.90
5	Agricultural	$4.25	$6.90
6	Conservation	$4.25	$6.90
7	Hotel and Resort	$7.90	$6.90
8	Homestead	$3.44	$4.00

	Hawaii County (Big Island)	Tax Rate Per $1000 Net Taxable Building	Tax Rate Per $1000 Net Taxable Land
1	Residential	$7.10	$8.10
2	Apartment	$8.10	$8.10
3	Commercial	$9.00	$9.00
4	Industrial	$9.00	$9.00
5	Agricultural or Native Forests	$6.35	$8.35
6	Conservation	$8.55	$8.55
7	Hotel and Resort	$9.00	$9.00
8	Home Owner	$5.55	$5.55
9	Affordable Rental Housing	$5.55	$5.55

* Single rate for each class
Source: City and County of Honolulu June 2009
This Flyer is deemed reliable but not guaranteed

DISCLAIMER: This flyer is for informational purposes and should not be relied upon for any business, legal, tax or financial decisions. Please seek professional advice when making such a decision.

Are You Really a REALTOR®?

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Wed, 15 Jul 2009 05:31:49 -0500

Toward the end of last year the Honolulu Board of REALTORS® brought in electronic lock boxes. The Sentrilock® boxes have brought in a much needed improvement over the old mechanical boxes. We can now monitor who and when they enter our listings. It also allows us to create dedicated 1-day codes for venders and agents who have not set up their smart card. I could go on for another paragraph touting the merits of the program.

What is quite disturbing is the number of real estate agents who have not activated their smart cards and those who are not using the boxes on their listings.

Sunday evening I was out at dinner and received calls from three different agents wanting to show my listings in the morning. I had nearly identical conversations with all three of them.

Call From Agent 1:

Me: No problem it has an electronic lock box on the front door, consider it confirmed. Please drop a business card on the counter to confirm you were there.
Agent 1: I do not have a smart card. Can I get a 1-day code?
Me: You do not have a smart card? The Board of REALTORS® issued them to all agents. Are you really a REALTOR®?
Agent 1: Yes I am a REALTOR®. I have decided not to use them.
Me: How are you doing business without the card? It also serves as your ID. I apologize, but I am not near a computer and will not be able to generate a 1-day code at this time. If you send me an e-mail, I can forward the codes later tonight or first thing in the morning.

The story gets better. Of the three agents who called, two of them did not have e-mail. I than suggested they call my office in the morning for help.

Three real estate agents, none using electronic lock boxes. Two of the three do not have access to e-mail. Can you imagine being on the other side of a transaction with one of them?

No e-mail. Phone and hard to read faxes. (oops I am assuming they have a fax)
1. One of the beauties of e-mail is the paper trail it creates. If I am dealing with a less than professional agent on the other side, I really would prefer hard copies of all communications in my file.
With no Sentrilock® card we will need to generate 1-day codes for all accesses of the home.

If these agents do not even have the basics, we would be looking at a messy transaction.

Buyers and sellers should check out potential agents to find out what level of services they provide. Not all agents are the same.

$8,000 First Time Homebuyer Tax Credit - Approved by FHA/HUD 5-29-09 - But buyer BEWARE !!!

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Tue, 02 Jun 2009 13:13:39 -0500

Below is the latest information on the $8000 tax credit for 1`st time buyers. There is much confusion caused by HUDs letter they sent out and pulled back. Industry expert od top blogger Jeff Belonger has done a great job of keeping us up to date. Please read his post below.

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):

BUYER BEWARE of Tax Credit

The first time homebuyers tax credit of $8,000 has been approved by HUD for all FHA loans. But don't get too excited too quickly. If you get a chance to read the mortgagee letter, ML 2009-15, it states that you can't use this tax credit for the required down payment of 3.5%.

HUD originally put out mortgagee letter 2009-15 on May 12th, but was rescinded the next day. Please read about that here : $8,000 tax credit rescinded by HUD. For some reason, it was prematurely placed on HUD's web site, but apparently wasn't finalized. Now we have a new version and if not read correctly, you could be putting misinformation out there. So what does the new mortgagee letter state?

Here is the positive part about the tax credit. You can receive the first time homebuyers tax credit upfront, but not through the IRS. This would be illegal. Please read : It's illegal to receive your tax credit before you close on your home. Buyers - BEWARE, please read that, because too many people are saying that you can get the money directly from the IRS prior to closing. The IRS & HUD both say no!!!

So how can you receive this upfront? It can be given to you as a second or a silent second from any Federal, State, or local agencies, and any FHA mortgagee or any FHA approved non-profit organization. People, in layman's terms, this is already acceptable by HUD's standards, except for the lender that is now able to give the monies upfront in a form of a 2nd mortgage. Another terminology is that this can be an advance loan from any of the entities mentioned above.

Summary : Essentially, this means that the entities mentioned above, are purchasing this tax credit on your behalf and giving it back to you. The short version of this is that you can use some of the money from the $8,000 Tax Credit as your down payment, but after you put down the first 3.5% of that down payment. Meaning, you have to come up with 3.5% of your own money still. With FHA loans, it can still be a gift from a relative/family member. It also can come from non-profit or government agencies to be used as your initial down payment, but not used through the tax credit. Overall, the tax credit that is advanced, can be used for all closing costs. But you can't receive monies back at closing.

And again, keeping in mind, it's illegal to receive this tax credit upfront directly from the IRS. There is more verbiage in the mortgagee letter 2009-15 , but the main point is that you have to have 3.5% of the downpayment yourself, before you can use the tax credit that would be 'loaned' to you.

THOUGHTS??? - Well, in all honesty, how does this truly help? What is the gov't thinking here? As a buyer, I would still need the initial 3.5% of my monies for the down payment. Again, needing money to buy. I know some of you are for this fact, that buyers should have skin in the game. But keep in mind, this was not the true demise to our foreclosure mess. We need to sell houses to keep this economy going. Just my opinions and food for thought. thanks

My Series on the First time homebuyers $8,000 tax credit - Everything you need to now, from start to finish - What's allowed and what's not allowed :

The $8,000 tax credit for first time home buyers - The basics - What to know about it - Understanding what the tax credit is all about.

Use a 6 month gift from a relative to buy a home, thanks to the Tax Credit - How to get creative in using the tax credit and some FHA mortgage guidelines in helping you use this tax credit to your advantage.

Using First-Time Homebuyer Tax Credits for the Downpayment - It's GONE !!!! - The story of the $8,000 tax credit - The bottom line, you can't use the actual tax credit as your downpayment.. for your downpayment, unless you get it from other sources prior to buying the house and receiving the tax credit.

FRAUD ALERT - Advice on the $8,000 first time homebuyers Tax Credit - Do you chance it??? - This explains to you that it's fraud if you directly obtain the money from the IRS before you actually purchase the house. Even HUD and many lenders/investors acknowledge this also.

The $8,000 tax credit for First Time Homebuyers - How & when to get it legally - So how can the tax credit be received legally for your downpayment? Just be careful of those that promise other ways not mentioned. I talk about what is illegal in the previous blog above. Please click the link.

The First time homebuyer $8,000 tax credit has been amended - May 29th, 2009 - Buyer, beware !!! You still need 3.5% of your own money for the down payment. It can't come way of an upfront loan through the tax credit.

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages -

- Conventional Loans - 203 k loans -

- Mortgages -

Experience & Knowledge at its BEST !!!

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger

HUD Jammed Us Up Again

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 14 May 2009 14:07:43 -0500

On Tuesday a letter was issued by HUD letting us know that the $8000 first time home buyer's credit could be used for down payments for FHA loans. A few news stories broke out immediately following that exciting news. At least we thought it was exciting news. Within a couple of days the story reversed. Never mind, HUD withdrew the letter. They were only kidding.

After sending out what I thought was exciting news, I had to send out another message a day later to my clients and fellow real estate professionals, letting them know that the HUD letter and information I sent out was not accurate.

THANK YOU, Jeff Belonger! Jeff the FHA expert who posted a blog article that did a wonderful job of clearing up the confusion created by HUD:

Using First-Time Homebuyer Tax Credits for the Downpayment - It's GONE !!!! - The story of the $8,000 tax credit

Mortgage Fraud Makes it Way to the Islands

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 14 May 2009 02:09:30 -0500

In our local news there has been a series of stories about a mortgage broker team who were committing mortgage fraud. They were also trying to trick people out of their homes.

The wife mortgage broker’s wife set up a fake escrow company and used shill buyers to supposedly help folks refinance their homes. They told people they were temporarily putting the deeds in the names of the shill buyers to make the refinance work and the cash they got out would be held in escrow to help make the mortgage payments. They later tried to evict the duped owners. One of the owners turned them in and the prosecutors shut them down. Legal action has been taken to keep the one owner in their home, but the deed is still in the name of the shill buyer.

The public needs to have their guards up. Those of us who are truly professionals need to be extra protective of our clients and be on the lookout for scam artists. Folks who are in a distressed situation are particularly vulnerable to folks like this.

Mr. Lender, Here is Hawaii Randy’s Tip for the Day

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sun, 12 Apr 2009 12:10:27 -0500

In the last month or so, I have seen usually reliable lenders getting stacked up and unable to handle the recent surge of business with the same level of customer service as in the past.

Last year things were slow and the banks were cutting back on staff. Many brokers closed their doors and now things are picking up again. There are fewer players to compete today for that business. A couple of lenders in our area who have been steady as the rock of Gibraltar are now stumbling. They have also tightened up with more than normal conditions on loans before funding. That was expected with the environment that they are working under.

I am not sure they really want my advice, but here it is anyway.

Remember who brought you to the dance. Real estate agents like me bring you steady business, without compensation. My only vested interest is to get my clients good service.
Make me look good.
Communicate with me and my clients.
Give us realistic timelines that you can meet.
Take Care of my Clients!

I depend on repeat and referrals. Clients that are dissatisfied or merely satisfied will not refer their friends to me. They need to be wowed by the experience of buying their home that includes your part of the process. When I recommend a vender to my client they grade me on your performance also.

I keep a list of venders that I and my clients have had good experiences with. It takes a lot to get on that list. I know many loan officers and lenders and only a small select group makes my list. That is the same with the other types of venders. You can however be knocked off my list in an instant. That is true of the rest of the real estate agents in our area.

Banks may be busy today with refinancing, but that will not always be the case. When the surge of refis flush through the system, will you still be getting the home buyers through us? If you drop the ball today, you will be back on the street trying to replace that lost future business.

That is Hawaii Randy's tip for the day.

Hawaii Chess Kids Do Well at SuperNationals Tournament

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Mon, 06 Apr 2009 20:26:58 -0500

For Immediate Release

April 6, 2009

Hawaii Chess Federation

P.O. Box 893636 • Mililani, HI 96789

Contact: Randy L. Prothero
President
(808) 384-5645
gambit7@hawaii.rr.com
www.HawaiiChess.org

Hawaii Chess Kids Do Well at SuperNationals Tournament

A small group of youngsters representing Hawaii performed extraordinarily well. Over 5,000 youngsters gathered this weekend, representing 47 states, for the Super Nationals, grades K-12 (all Nationals combined) in Nashville. Even though there are lower rated divisions, all Hawaii players competed in their respective Championship Division, the highest available for their respective age/grade group.

Here are the results and awards.

Championship (Open) Divisions (Game/2 hours):

K-5, Ford Nakagawa, NATIONAL CO-CHAMPION! (State Elementary K-6 Champ, The Children's House and Mililani Chess Club): http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K5
K-12, Robert Lau, 3^rd Place (High School State Champion, 2-time National Champion, Mililani High School & Mililani Chess Club) http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K12
K-8, Eldon Nakagawa, 5^th Place (State K-8 Co-Champ, Our Savior Lutheran, Mililani Chess Club) http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K12
Team, K-9, Kamehameha Schools, 5^th Place http://www.alchess.com/chess/09/super/?page=TEAM&xsection=K9
K-9 Unrated: Lucas Beddow, 1^{st Place}(Kamehameha Schools),
K-1: Patrick Perry, (Aikahi Elementary), 5-2 Score: http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K1
K-9 Tristan Kaonohi, Kamehameha Schools & Mililani Chess Club) 4.5-2.5 score: http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K9
K-9 Likeke Aipa, Kamehameha Schools 4-3 score http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=K9

Blitz (Game/5 mins):

K-12: Robert Lau, (High School State Champion), Mililani High, 9-3 score: http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=BLITZ12
K-9: Tristan Kaonohi, (Kamehameha Schools), 9-3 score: http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=BLITZ9
K-9: Likeke Aipa, (Kamehameha Schools), 8.5-3.5 score
K-9, Eldon Nakagawa, (Our Savior Lutheran) 8-4 score
K-6: Ford Nakagawa, (Elementary State Champion), The Children's House, 10-2 score: ^{http://www.alchess.com/chess/09/super/?page=STANDINGS&xsection=BLITZ6}
Team, K-9, Kamehameha, (State Middle School Team Champions; Tristan Kaonohi, Likeke Aipa, Jakob White, Nathaniel Brown, Lucas Beddow), tied for 3^rd & 4^th: http://www.alchess.com/chess/09/super/?page=TEAM&xsection=BLITZ9
K-9: Lucas Beddow, Kamehameha, Unrated, 2^nd

A special "Thank You" to Guy Ontai our state scholastic director for traveling with the team and reporting back on their progress.

The Real Estate Business is Changing Are You?

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sun, 05 Apr 2009 13:40:24 -0500

This last year has been an amazing one. I knew that the market and the rules would be changing. Changes would be coming and they would be dramatic. Those expecting them are not disappointed. Those doing business the same way they did in years past are probably not doing so well or may have already left the business.

In my market, sales activity has cooled over the record sales volume of a couple years ago. Sellers are seeing homes sit on the market for months instead of days. They are looking for the best agent they can find and no longer just looking for the cheapest. Buyers are on the internet and loaded with data. They have a better knowledge of the market and the numbers. They are also prescreening agents online before contacting them. Real estate agents without a strong internet presence can't are not doing so well these days.

We went from having a website to have a blog like on Active Rain to now being on social networks and having multiple websites with IDX engines and multiple blogs. Our listings a few years ago were posted on the MLS. Today we post them on dozens of websites, have virtual tours and create a website for each and every listing with its own domain name.

Listing presentations went from tax records and comparable sales to now adding satellite photos, demographics, maps, charts, detailed marketing plans and computer demonstrations. In this information age what we did a couple of years ago is no longer even the bare minimum. You need to take it to a much higher level and you need to incorporate technology.

You also need to take your personal marketing to a much higher level. Clients are looking at your personal marketing. If you are not doing a good job of that, what message are you sending about the kind of job you will do for them? Many of the new clients I picked up the last two years specifically mentioned my personal marketing as a reason.

Clients are looking at your bio. Have you invested in your career? Do you have professional development and designations? I hear the argument that those are just alphabets and the public has no idea what they are. WRONG! They are on the internet and they are reading. Even if they do not know what they mean, they know they need them. While taking a class a couple of years ago the instructor made that very point. When he had to have oral surgery, he had no idea what the designations after his surgeons name were; he just knew he needed them. He did not want the surgeon without them. I am sure in today's world he will Google^TM them.

So if you do not feel the need to utilize technology in your real estate business, not to worry. The world need ditch diggers. If you are looking to buy or sell residential real estate in Hawaii, please check me out. You will receive the VIP treatment.

I have to run. I am meeting today with a new client who met me through my website: www.HawaiiRandy.com

A Real Estate Alert - Buyers and Sellers Beware!

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 12 Mar 2009 10:56:27 -0500

If you are looking to buy or sell a home you may want to ask a question of you real estate agent before making a decision on whether to work with them.

Do you do this full time? In other words is this their primary source of income?

In my county and I am sure the numbers may be similar across the country. About 2/3 of the members of our Board had one transaction or less last year. I know you are stunned, but this is the number. That does not include all the people who have active real estate licenses who are not member of the Board of REALTORS®.

I am in a class of some kind monthly and sometimes even more often. As a full time licensed broker/ agent I write and review contracts continuously. I allocate a large budget every month for marketing both y client's properties and myself. I attend briefings and meetings constantly. This is a complicated business and it requires that we stay on the top of our game.

Someone who had zero or one transaction in a year cannot possibly be up on the contract and law changes.
There is no way that they will be able to market your home properly when they are not successful marketing themselves.
Will they even have the resources to pay for the marketing?
Are they tight for money and will they be pressured to close this sale at all costs? Will they be willing to protect your interests even if that puts the sale at risk?

Of the other 1/3 of the agents who had 2 sales or more, how many of them are actually in the business of real estate? How many have a full time job and do this weekends and evenings while balancing their family time?

In this changing market the need to find a professional real estate agent is stronger than ever. To have success in this market look for an agent who is having success. They are out there. They are however in the minority. Like the old saying if you want to get something done find the busiest person to do it.

Real estate is my full time occupation. In 2008 when many agents left our industry, I increased my marketing budget and increased my sales. If you are looking to buy or sell a home in Honolulu County (Oahu), I would be honored to assist you. My services are normally free to buyers and I have aggressive marketing programs for sellers.

2009 VA and FHA Mortgage Loan Limits for Hawaii

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Mon, 02 Mar 2009 08:28:21 -0600

The below numbers were taken from the HUD and VA websites.

2009 Hawaii FHA Loan Limits
County	One-Family	Two-Family	Three-Family	Four-Family
HAWAII	$625,500	$800,775	$967,950	$1,202,925
HONOLULU	$793,750	$1,016,150	$1,228,300	$1,526,450
KALAWAO	$716,250	$916,950	$1,108,350	$1,377,450
KAUAI	$773,750	$990,550	$1,197,350	$1,488,000
MAUI	$790,000	$1,011,350	$1,222,500	$1,519,250

2009 Hawaii VA Loan Limits
County	Single Family $0 Down up to		Max Guarantee
HAWAII	$625,500		$1,000,000
HONOLULU	$783,750		$1,000,000
KALAWAO	$656,250		$1,000,000
KAUAI	$775,000		$1,000,000
MAUI	$681,250		$1,000,000

To find out your qualifying loan amount or details on VA or FHA borrowing, please seek a out qualified loan officer. If you are looking to buy in Hawaii, my services are normally free to buyers. I can help you with the purchase of the property and can give you the names of top professional loan officers in the area that I and my clients have had good experiences with.

*The above information is believed to be accurate, but not guaranteed.

Long Term planning changes for captial gains on investment properties!

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Fri, 27 Feb 2009 00:38:28 -0600

Below is a great post from Kathleen explaining the change in the capital gains. This effects those who are taking investment property and converting it to owner occupant or the other way around.

Via kathleen bonham (The Realty Network Group):

The Housing Assitance Tax Act of 2008, enacted on July 30 modifies the rules with respect to gain on the sale of a primary residence. As you know, under prior law up to $250,000 of such gains ($500,000 for married coupels filing jointly) was excludable for purposes of capital gains tax if the taxpayer had owned and occupied the property as a principal residence for at least 2 out of the 5 years prior to the sale.

This meant that owners of investment properties could render them eligible for the primary residence exclusion in its entirety by moving into them for two years. Effective January 1, 2009, the exclusion will be restricted to the time the property is used as a principal residence (qualified use) for the period after that date. The gain allocable to the period of time the property is owned as an investment or a second home prior to its conversion to personal use will no longer be qualified (unqualified use) under the new exclusion rules. This does not, however, apply to years prior to 2009.

The effect is to prorate the exclusion on sales of investment or second homes converted to personal use after January 1, 2009. In other words, the exclusion will be reduced by the period of unqualified use taken as a the proportion of the total time of ownership. The period of ownership before January 1, 2009 is grandfathered (i.e., treated in effect as qualified).

For example, John Doe and his wife, Fanny, purchased a house as an investment in 2001 and rented it out. In January, 2006, they sell the house and do a 1031 exchange for a home in Phoenix where they intend to live when they are able to retire. In the meantime they will rent it out. In January, 2013, they retire from their jobs, sell their home in Peoria, and move to their house in Phoenix, which they remodel with some of the $300 thousand gain realized on their Peoria home (which is, of course, fully excludable from tax). After three years, however, they miss their friends and family and decide to move back to central Illinois. Suppose they realize a gain of $400 thousand on the sale, which closes in January 2016. Under the new rules, the four years from 2009 to 2013 would constitute "nonqualified use." The three years they occupy the property (2013-2015) as well as the period 2006 to 2009 are qualified. Thus the amount excludable would be calculated as: $400,000 less 4/10 X $400,000 or $160,000 =$240,000. Under this scenario, John and Fanny would be liable for capital gains tax on $160,000.

There is one further wrinkle. The new allocation rules (as between qualified and nonqualified uses) apply only to the period prior to conversion to principal residence. Owners who,for whatever reason, rent their residence after at least two years of occupancy are still eligible for the entire exclusion if they sell the property within the next three years.

So we as realtors need to be sure that our clients seek advice with their tax consultants!

Pricing War and a Beauty Contest

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Wed, 11 Feb 2009 11:33:23 -0600

Last week I attended the CRS Sell-a-bration in San Francisco. The Sell-a-bration is a gathering of some of the top agents in the country. We spent 3 days of classes, conference session with top speakers and some fun social mixers. During the conference I picked up several pearls. One that I truly liked was the phrase: "A Pricing War and a Beauty Contest."

When describing the sale process to a potential home seller, this phrase sums it up in the best direct way I can think of.

In most parts of the country we are in a buyer's market. There is a good selection of inventory and prices are either flat or slipping depending on the area and type of property. With that said, what will make you home sell before the others in your neighborhood?

You have to win the beauty contest plain and simple. When the buyers walk in did you grab them? If they liked what they saw did the price scare them off and send them down the street? This is one of the hardest concepts for many sellers. They have lived in this home. Raised their family and have had so many great memories here. Their friends and neighbors have all told them their home is worth so much more than all the others in the neighborhood. Let me clear things up for you. It is not! Friends and family will tell you that to be supportive. Neighbors have a conflict of interest. They are hoping you will raise their property value by selling at a higher price.

To keep it simple, when you are getting your home ready for sale remember you are entering a Pricing War and Beauty Contest.

25 Random Things About Me - I was Tagged by Chris Griffith & WooHoo Sally on Facebook

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Mon, 09 Feb 2009 23:26:08 -0600

Rules of the game: Once you've been tagged, you are supposed to write a note with 25 random things, facts, habits, or goals about you. At the end, choose 25 people to be tagged. You have to tag the person who tagged you. If I tagged you, it's because I want to know more about you.

To do this, go to the "notes" tab on your profile page, click on "write new note," paste these instructions into the note, type your 25 random things, tag 25 people (in the upper right hand corner, then click "publish".
I don't know what else I can reveal that wasn't on Active Rain. Here is 25 pieces of crap rolling around in my brain that you are just *dying* to know:

My lovely wife Darnelle ahs the ability to put up with me, which makes her exceptional. She was born and raised in Central Oahu. We have two sons one in 12th grade and one in second grade.
For Christmas I bought the video game Rock Band® for my sons. I have since got hooked on playing with my family. I like the guitar best. My wife was not happy I bought it. Now she plays too.
Many years ago I played tournament 9-ball. I also sold custom pools cues and was part owner of a small pool cue factory for a short time. My personal cue was custom made for me and was nicknamed Doom, my break stick was called Boom. (Boom and Doom). I gave up the game several years ago.
I have a weird sense of humor. I can pull your leg and keep a straight face throughout.
Love to play Texas Holdem. Possibly my ability to keep a straight face gives me an edge in Poker. I win a lot more than I lose at our weekly game.
I lost 220 lbs a couple of years ago. It took me 12 months to do it. Since then I gained back 20lbs of it. Most people think I lost more weight. I am setting a goal of losing the 20 back off by summer.
For the last 13 years I have taught chess mostly to children at the local recreation center. I am president of the Hawaii Chess Federation, organize many of the chess tournaments on the island and head up the chess in the Schools program. Both of my sons have won state titles. My wife used to have the e-mail address of ChessWydow. She now has ChessMom.
Love rock music. My favorite groups were: Led Zepplin, Van Halen, Foreigner, Fog Hat, Rush and Gun N Roses.
Born in Wisconsin and grew up in Chicago. I moved to Hawaii in 1981 and call it home. Everywhere else is a place to visit.
A regular listener of talk radio. Some of my favorite shows are: Bruce Williams and Kim Komando.
I volunteer with several community groups and sit and a few boards and commissions. I am a state civil defense commissioner for Hawaii.
Being a fiscal and social conservative, I believe that government is almost always the problem and not the solution. I am generous and believe in helping those who need help, but not creating a dependant class of citizens. I feel the best place for your hard earned money is in your pocket and not the governments.
I was tagged by Chris Griffith who hates lima beans and beets. We have that in common. I would gag if beet juice got on my plate.
Originally licensed to sell real estate in 1982. I got into to the printing industry and spent most of the years in between selling machinery band supplies there. 6 years ago I got back into real estate and plan to do it until retirement.
Active Rain has been one of my favorite places on the internet. It has changed the way real estate professionals communicate with each other and the public. I have attended several gatherings of its members.
I am new to Facebook, LinkedIn and Twitter. They are proving to be a great way to meet people, and for folks to find me.
Great movies need to have: humor, violence and sex. Two of the three are required for a good movie. I love movies that are entertaining and refuse to pay for someone to push a political agenda to me.
I sell real estate and love what I do. I am good at it and constantly take classes to get better. My greatest reward is seeing the faces on first time home buyers when I hand them the keys. I feel extremely honored to work with many of our military families. I am so proud of and grateful for what they do for all of us.
Some of my favorite movies are: Animal House, Caddy Shack, Rudy, Ferris Bueller's Day off.
Was the first of my friends to own a personal computer. I remember turning it on and watching the curser waiting for it to do something. It had two floppy drives and no hard drive.
Love pizza and chili. As I have gotten older I have to avoid the beans. You can figure that one out. Italian, Chinese and Mexican and my favorite types of food.
After many years of not going to the beach, I have gotten hooked on skin diving again.
After several years of not reading any books I got back into reading again. My most recent and favorite was, "Real Estate the Rome Way." It was written by fellow Active Rain blogger Margaret Rome.
My favorite weekend activity is attending my sons sporting events. When I was younger I played several sports and no can live vicariously through them.
Besides the many hats I wear I recently became a mediator and ombudsman for the Board of REALTORS®.

Signs The Real Estate Market is Not All Bad

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Sun, 25 Jan 2009 17:04:18 -0600

There are signs the real estate market is not all bad.

The newspaper is not giving you that message. It almost appears the new media is determined influence the real estate market rather than report on it.

In the last few weeks I am seeing signs of things picking up in many of the communities I service. I am getting more showings on my listings and have several buyers who were waiting in the wings now actively looking for a new home.

Last week I submitted offers on two different condos for a buyer. In both cases we were in a multiple offer situation. It has been a long time since I saw the same client have that happen twice.

One of my buyers sent me a list of six properties they were interested in. Three of them went into escrow last week. That is definitely a sign of things picking up.

With interest rates at these low levels many buyers who were sitting in the wings are now actively looking for a new home. Some sellers are recognizing a window of opportunity and are prepping their homes to get them on the market. If you are not buying or selling a home you may be refinancing one. I am definitely seeing an increase in activity since the first of the year.

Over the next few months a large number of military troops will be returning from deployment in Iraq and Afghanistan. They will increase the demand for housing in our area. I will not predict what the median price of a home will be a year from now or if you home will gain or lose value in the next 3 months. I will predict one thing though. The news media will be the last to report when something positive happens in our real estate market.

So You Want to Be a Real Estate Agent

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Wed, 07 Jan 2009 05:02:55 -0600

I regularly get approached by friends, family members and clients who are thinking about becoming a real estate agent.

After all, I make it look so easy and they see my face all over the place. I must be making big bucks and not having to work very hard for it; right? Isn't that the impression we give others when we are successful at we do?

Professionals have a habit of making the process look easy. We shield our clients from most of the stress and strain we go through to make it all come together. We shove papers in front of our sellers a few times and say sign. A few open houses and an inspection or two and they get their check. How hard could that be? They are sure they could do it.

Buyers think we drive around, show a few houses and then in a month or two deliver them the keys.

If we are good at what we do, we make it look easy to the outside world. The truth is being a REALTOR® is not an easy job. It requires a lot of training, a lot of hard work and dedication, a lot of expenses and all with no guarantee of getting a pay check.

Ed Hatch is one of my favorite CRS instructors. He claims to do what we do, you have to be a little crazy. Think about it:

We go to school to qualify for a license.
We pay a few thousand dollars for the license and the various REALTOR® associations.
Pay for E&O Insurance.
Purchase business cards.
Pay for the needed training to learn how to do the business.
Get tax licenses, etc.
Pay for marketing (which isn't cheap).
Work floor duty.
Sit open houses.

All of that before we even get our first client. Once we get our first client we are still looking at a minimum of a month or two before the first pay check comes in. Are you starting to agree with Ed? You have to be a bit crazy to do what we do.

So let's say I haven't scared you and you've decided to be one of us. You will be joining one of the most noble of all professions: A professional REALTOR®. Where should you start?

I just read probably the best book I have seen for someone thinking of entering the real estate profession or is new to the business. Heck, I have been fairly successful in real estate and I still enjoyed the book and got a few great ideas from it. The book is: Real Estate the Rome Way by Margaret Rome.

So if I haven't scared you off from joining the world of real estate, you should seriously consider reading Margaret's book. You will get guidance to help ensure a good start.

Good Luck and Good Reading!

Scrooge Real Estate Agent

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Fri, 26 Dec 2008 02:48:37 -0600

I was thinking about an experience I had on Christmas a couple years ago.

I got a call from an agent who wanted to show one of my listings on Christmas. They not only wanted to show it that day they wanted to show it on short notice. The same year that happened, I read a similar account from another agent on Active Rain.

What would you do? I told them I could not make the appointment for them, but could schedule them for another day. It is Christmas and my clients have guests over. The seller's asked for no showings for the couple of days while they had guests, which I posted in the listing under showing instructions.

Not accepting my response he pressed me further, all but demanding I call me clients and interrupt their holiday gathering. I declined to make the phone call, which made him irritated. I said it is Christmas and I will not disturb them. After making some unpleasant remarks about professionalism and religion he hung up. I never heard of the agent before that day and have never seen or heard of him since. I am guessing may not still be in the business.

I wonder how many listing agents would have actually called their clients.

2009 Military Basic Housing Allowance (BAH) for Honolulu County

Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes) — Thu, 25 Dec 2008 11:53:16 -0600

As we get to the end of another year a few things will change. One of them is the Basic Housing Allowance for our active duty troops stationed in Honolulu County (Island of Oahu). The rates had a slight decrease from the 2008 levels. Those who are already stationed here will be grandfathered in at the previous rate. BAH in Honolulu County is much higher than most parts of the country. Coupled with VA Mortgages, buying a home is a viable option for our troops in Hawaii.

2009 Military Housing Allowance Monthly BAH (Basic Allowance for Housing) for Honolulu County.

The VA mortgage cap for 100% financing in Honolulu County is: $783,750. (Larger amounts will require some down payment.)

RANK	WITH DEPENDANTS	WITHOUT DEPENDANTS	RANK	WITH DEPENDANTS	WITHOUT DEPENDANTS
E-1	$1,949	$1,555	W-4	$2,788	$2,306
E-2	$1,985	$1,555	W-5	$2,967	$2,434
E-3	$1,985	$1,555	O-1E	$2,431	$2,043
E-4	$1,985	$1,555	O-2E	$2,607	$2,144
E-5	$2,043	$1,757	O-3E	$2,816	$2,274
E-6	$2,247	$1,868	O-1	$2,069	$1,855
E-7	$2,403	$1,955	O-2	$2,269	$2,011
E-8	$2,545	$2,088	O-3	$2,627	$2,191
E-9	$2,745	$2,160	O-4	$3,043	$2,416
W-1	$2,276	$1,913	O-5	$3,334	$2,502
W-2	$2,461	$2,087	O-6	$3,361	$2,633
W-3	$2,633	$2,167	O-7+	$3,401	$2,686

E= enlisted
W= warrant officers
O-1E= officers with enlisted experience
O-1= commissioned officers with no prior enlisted experience

If you are active duty or a former member of the military and interested in learning how to buy a home utilizing your VA benefits on Oahu; I would be pleased to help you get started.

If you are civilian and wondering what programs are available for you to buy your first home, please feel free to contact me.

My services are normally free to buyers.