“It’s simple arithmetic: Your income can grow only to the extent that you do.” T Harv Eker
The pandemic year of 2020 caused some business people to prosper, and others have had to struggle to survive. As a mortgage officer, I have heard customer stories as they describe their trek to keep home and business lights burning. Mortgage rates are low and expected to stay relatively low through the year. However, the price of those rates has been rising over the last couple of months by about a half-point since January 2021.
Business owners and workers who have experienced a gap in income during the lockdown period last year have been trying to recover as the marketplace opens again. For these beleaguered borrowers, we, as lenders, need to spend some time finding ways to get them enough income to qualify for the home loan they need to move forward with the life they want.
Here are some solutions we have found for borrowers who were off work for a few months but returned to work.
W2
If you are an employee on a salary or paid by the hour, you still may be able to qualify if you are back to working in the same line of business where you have the experience, and you have guaranteed income from your employer.
Search for other income sources such as investment income or pension income. Consider adding a co-borrower or cosigner to the loan if the borrower has additional resources to make the mortgage payments easily. Explore ways to restructure other debts or pay off some debt to reduce the amount of income needed to qualify for the mortgage.
Self-employed
If your business suffered last year, but you still show enough net income after expenses on your 2020 tax return, you may still be able to qualify to buy a home or refinance your existing loan to better terms. Your lender can go over your tax return to find expenses that are sheltering you from taxes but can still be added back to your income for loan qualifying purposes.
Some of the expenses that can typically be added back to qualifying income are depreciation or depletion write-offs, depreciable business miles, deductions for business use of your home, and once-in-a-lifetime expenses.
Other solutions for getting self-employed borrowers approved for a mortgage are to document debts paid by the business for the last 12 consecutive months that are already deducted from business income. Suppose the car payments and other debt appear on the borrower’s credit report but are paid by the business, and the payments on those debts have already been deducted from business income. In that case, the chances are good those debt payments can be omitted from the total income-to-debt ratio.
As real estate and mortgage professionals, taking the extra time to explore the best solutions for our customers gives us trusted advisor status with the people we serve. The solutions we help them find gives our customer hero status with their loved ones.
In the 16 years I have been writing these “On the TunneySide of Sports” weekly columns, I have often used the word T*E*A*M, meaning “Together Everyone Accomplishes More.”
I learned that as a youth growing-up (do you always grow “up” not “down”?) with parents who helped me develop and practice that philosophy. I was lucky to be born with that heritage – a father who was a teacher as well as a coach and a mother who practiced at home what my father was teaching/coaching at school.
While others may not have been as fortunate, that philosophy encouraged me to select my life’s goal – at 12 years of age – to become a coach. That early-on decision has served me well, but with challenges at each level of progress. As I moved through those “gates,” to utilize that philosophy, I was intent upon including everyone as part of the T*E*A*M thus, inclusion was first and foremost in my mind.
I can certainly sympathize with President Joe Biden who has accepted the challenge of bringing a severely divided country into one United States of America. I will leave that issue with those much more capable than I. However, I must add a comment that of those two challenges — political and ethnic — I faced the latter in my coaching. Again, my father gave me a head start since the star player on his football team was an African American named Kenny Washington, who not only led Lincoln High School (Los Angeles) to that school’s only football Los Angeles City Championship but was the first African-American to be drafted by the Los Angeles Rams in 1947 when they moved from Cleveland to Los Angeles.
As a teacher, coach, school principal, and district superintendent it was similar to my basketball coaching experience that if the player could shoot, pass, dribble, and work with the team better than any other he played. I was never concerned with the color of his skin – only his qualities, i.e., his character, personality, and capabilities being first and foremost.
The other characteristic I learned at home and carried forward was the avoidance of derogatory language in bringing people together. One has to be careful in kidding/teasing others. Treating others with respect can carry you forward in a significant way.
Will you include others by focusing on their character, personality, and capabilities?
Reef Karim, a transformational neuroscientist, medical physician and creative artist, believes we are in an epidemic of conformity, where visibility is emphasized over credibility, where the chaos and noise of digital stress has diminished our creativity and originality, where self sabotage has risen.
And our business, our relationships and our world have suffered as a result.
Dr Reef guides companies, and the people in them, to overcome conscious and unconscious blocks and build a more effective and powerful leadership style of originality, creative vision, authenticity and vulnerability. He is an advisor, thought leader and content creator - providing the wisdom of how to lead a better life.
In addition to advising and consulting high impact corporate executives and high performing entrepreneurs, Forbes writes...
“Reef Karim has treated a who’s who list of celebrities, royalty and politicians”.
Reef has truly mastered the art and skill of connecting our minds - left brain/right brain or simply, a more integrated neural network for high performance and innovation. The content is transformative. The delivery is entertaining.
As a scientist, philosopher and creative, he’s developed a unique framework for seeing the world. He helps leaders become better leaders. He helps companies become higher performing, differentiated and connected.
Dr. Reef is a double board certified psychiatrist, addiction medicine physician and relationship expert who served as an Assistant Clinical Professor at the UCLA Semel Institute for Neuroscience for over a decade and was the founder and director of The Control Center in Beverly Hills, a Mental Health treatment center centered on overcoming mental health issues, the Opioid Epidemic, Self Sabotage and Escapism Behavior.
Reef is a highly sought after speaker and is well known in the media with appearances on: Oprah, Dr. Oz, Larry King Live, Dr Phil, Anderson Cooper 360, Nightline, The Today Show and Chelsea Lately in addition to hosting the shows: Broken Minds (Discovery) and House of Clues (Court TV/Tru)
His work has been profiled in Time, Business Insider, Forbes and Oprah.com. He guest hosted the popular radio show “Loveline” with Adam Corolla and guest hosted KFI news in Los Angeles.
For his work in neuroscience, mindset and media, Dr. Reef was voted one of People Magazine's "Sexiest Men Alive” and “One of LA’s Most Fascinating People”.
A bit about Summer:
Summer Goralik is a Real Estate Compliance Consultant and licensed California Real Estate Broker (#02022805). Summer offers real estate brokers a variety of consulting services including assistance with California Department of Real Estate (DRE) audit preparation, mock audits, advertising review, and training. She helps licensees evaluate their regulatory compliance and correct any non-compliant activities. Summer has an extensive background in real estate which includes private sector, regulatory and law enforcement experience. Most recently, she worked for the Orange County District Attorney's Office as a Civilian Economic Crimes Investigator in their Real Estate Fraud Unit. Prior to that, Summer worked for the DRE for six years as an Investigator. Among many achievements, she wrote several articles for DRE, four of which were co-authored with former Commissioner Wayne Bell. Before she embarked on her career in government and law enforcement, Summer also worked in the escrow industry for nearly five years, for both an independent escrow company and broker-controlled escrow division. Aside from her consulting business, Summer is also an Instructor for The Escrow Training Institute.
Undoubtedly, you have heard of smartphones. More likely than not, you have one in your pocket as you read this. Additionally, smart homes and smart home features are likely part of your vocabulary in today’s world, including the likes of Ring Doorbells, Nest to remotely handle things like your thermostat, or any number of artificial intelligence (A.I.)-based devices, such as Amazon’s Alexa. But have you yet heard of a “Smart City?”
Despite having the aforementioned technologies, does the concept of Smart City still sound like something out of a sci-fi movie or Netflix series? It shouldn’t, as the technology that encompasses a Smart City is fast becoming a reality, and it is already applied in many ways.
What Is A Smart City?
You may already have a rough understanding of what a Smart City may include, given the frequency of smart home applications and devices on the market today. Because we have fully embraced the concept of smart devices in our pockets, our cars and our homes, it’s only natural that we now look to make our cities much smarter as well.
However, a Smart City being a much larger scale application means larger solutions to much more widespread problems the residents and working professionals of a city face. In simpler terms, a Smart City technology can address issues with transportation, public safety, waste disposal and processing, urban planning, economic development, and more.
Those are the issues that need solving, and digital technology is what solves them, much like you having an App to change your home thermostat from a beach in Jamaica. So, what exactly are some of the prominent technologies at play in the development of a Smart City?
5G Connectivity and Transportation
Between Verizon, AT&T, and our own personal connectivity, 5G is applicable in far greater situations, integral especially in the functionality of a Smart City.
The traffic in every major city across the world is probably our biggest concern, both because of pollution and the inevitable gridlock many face in cities like Los Angeles and Chicago. Verizon Wireless is one of the biggest 5G traffic management system providers in the United States, boasting the ability to cut down vehicle idle time by nearly half of what it has been by way of implementing Internet of Things (IoT) devices in the pavement and streetlights to better alert local authorities of patterns in traffic.
In addition to driving, let’s also consider the issue of parking. If you did not grow up in a city, you know exactly how frustrating it is to do laps around a downtown area looking for an available spot. Smart parking systems coupled with low latency connectivity of 5G can likely provide an out-of-towner the ability to be alerted when a parking spot is upon them.
Safety And Security In The City
Small-town individuals who travel to a bigger city for work or, as work becomes more remote, entertainment and enrichment are the prime target for muggers and physical crimes. Is this something that the more advanced technology of a Smart City can remedy?
Yes, it can and absolutely will! 5G connectivity facilitates what is called Edge Computing: a lightning-fast capturing and processing of data unlike ever before, updating over-the-air and data management platforms quickly. This level of video surveillance facilitates real-time analysis of video recordings of high-crime areas in the city to quickly identify and thwart something as small as a mugging or as large as a citywide terror threat.
Because our smart devices give us the ability to be so connected, greatly increasing the volume of data that is generated every second of every day, 5G connectivity can and will be put to great use in the way of safety and security. However, there is also the double-edged sword many authority figures and politicians must deal with. Will the public be okay being on camera every step of the way for their safety?
All This Technology, What About Hacking?
While on the subject of safety, when it comes to connectivity, the fear of hacking or destructive cybercrime is always prevalent. How do you have such a digital city, with so many critically used technologies, and keep it digitally safe for everyone?
In this case, blockchain technology is the answer.
Blockchain is a decentralized ledger system that cryptocurrencies are built on, storing data across a series of computers rather than one solid hub. This, coupled with its level of encryption, makes hacking nearly impossible, as the second a breach occurs, it would take the hacker an absurd amount of time to reconstruct the data, giving cybersecurity professionals and software the ability to respond long before the damage is done.
Smart Cities Are A Hard Trend
In many cases, Smart Cities are already under way, as is 5G connectivity for our personal devices and smart homes.
According to my Anticipatory Organization Model, in order to stay ahead of digital disruptions in your industry, you must pay attention to the Hard Trends, or future certainties that we cannot change, shaping the world.
I already identified 5G connectivity as a Hard Trend many years ago, and, likewise, 6G and beyond will materialize as well. And because of that, the applications of Smart City technology are truly limitless; a Soft Trend that is open to influence, which you can then leverage to your advantage.
Smart Cities are digital, but human beings are the ones that give them a reason to exist at all. Therefore, it is important to become an Anticipatory Leader today, so can you use my Hard Trend Methodology to pre-solve problems that we as humankind will face as cities become more digitally connected?
Strong buyer activity and the rate at which listed properties are flying off the market make it important to recognize opportunities when others miss them. Right now a real untapped market for opportunities is investors! Let’s take a look at a few reasons investors are now great targets:
• COVID 19 has allowed people not to be evicted for non-payment of rent. No rent, no cash flow!
• Colleges and Universities are limited or empty, leaving student housing units to remain vacant. No rent, no cash flow!
• Property values in many areas have risen significantly in the past few years, making properties far more valuable than thought.
• Potential changes in investment property financing may make it less attractive to continue purchasing investment properties and creating the possibility for the search for other investments.
• Potential changes to the tax code may also make it less attractive to hold investment property long term and open the door to other potential investments or allocation of assets.
So why not have the conversation with our investors about selling now?
Why not have conversations with our real estate partners to discuss the situation with their investors?
Isn’t this a good time to speak with our accountants and financial planners about this subject?
Wouldn’t this be a great time for a video or videos with your other professionals about this topic to share with your people, their people, and social media?
It’s easy for people to complain about the market; why not create useful strategies for your clients and referral partners on how there are opportunities to be had if you only look for them!
Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.
John Capozzi- “Dig where the gold is unless you just want some exercise.”
“Location, location, location,” experts say is the most important real estate facet. If you are a homeowner, a home seller, or a homebuyer, the timing element determines the amount of gold you mine from your home or your financing. “Is there still gold in them there hills?” Watch out for the effects of inflation.
Inflation is pushing onto the scene, and inflation is the archenemy of low interest rates. This week the Federal Reserve chairman, Jerome Powell, announced that the Fed would continue keeping their rate low, even in the face of rising inflation. The Fed vowed they would continue to buy mortgage-backed securities to keep mortgage rates affordable. However, the bond markets have been running against the Fed's efforts like a game of chicken. “Is there gold in them there hills?” When it comes to your real estate and your mortgage financing terms, better look at laying claim to it now, before the economic landscape changes.
We still see a hot real estate market for both buyers and sellers from the mortgage office. High demand and the short supply of homes for sale are bolstering home values on the high side. High home values are golden for home sellers. Buyers see the still low fixed mortgage rates as a goldmine for them also. Buyers can lock in fixed rates that are still giving them a house payment much less than what they would be paying to a landlord for rent on a similar home.
Ways to mine gold from your home and mortgage
1. First-time homebuyers feel a lot more secure knowing the principal and interest payment on their new fixed-rate mortgage will not be increasing year after year, like when their landlord would knock on the door and raise the rent.
Johnny and his family had been paying about $1,000/month in rent in a crime-ridden area. They wanted to move to a safer neighborhood with a larger house to accommodate their expanding family size. Johnny was short on funds for a down payment, but he did have a lot of patience and persistence, and with a little bit of help with the down payment from a local agency, Johnny’s family bought the home they wanted with less than $1,000 down and a total payment under $800 per month.
2. Home sellers are bragging about the profits they are pocketing selling their homes. For example, for March 2021, Realtor.com shows the national median home price was $353,000, an increase of 13.7% from $310,000 in February 2020.
3. Refinancing and restructuring finances are still happening for homeowners. Today the pace is more frantic since mortgage rates have been climbing steadily over the last month. It is hard to find mortgage rates in the twos with no extra costs, but there are still rates to enjoy in the threes for many borrowers.
A. Refinancing to lower your rate and lower your mortgage payment
B. Refinancing to lower your rate and shorten the term on your mortgage
C. Refinancing to lower your rate and combine other debt to improve your home or reduce overall payments per month.
1. Indiana University in Bloomington is some 54 miles (1 hour + driving).
2. Purdue University is 65 miles (1 hour+ driving).
3. Butler University near downtown Indy.
4. Bankers Life Fieldhouse is just minutes away from Central Indianapolis.
5. Indianapolis State Fairgrounds is near the city.
6. And Lucas Stadium will have 2 courts available, but will only use one at a time.
We are in extraordinary times that call for extraordinary performance! Think hard about your brand, logo and market presence. Reinforce it as is, or tweak it, or change it altogether if need be, but carefully work through what you are saying to your marketplace and the way it will be received.
Rick began his career as a part-time agent in 1976, quickly becoming full-time and eventually buying the company in his fifth year. He grew it from 34 to 193 agents and lead the U.S. in agent productivity. His personal sales production saw him sell 200+ homes per year during his sales career. He was honored to be both Renos Salesperson of the Year, as well as the Nevadas Realtor of the Year. Upon selling his company, Rick has shared his successful strategies worldwide ever since. He has spoken in all 50 states, for every real estate franchise and has been recognized as one of the most popular trainers within the real estate industry. In 2014 Rick became the Regional Director for an Australian based franchise and grew it to 7 offices with 125 agents in Oregon and Washington.
With over 40 years of experience Ive seen every real estate model offered to this industry. When I was first introduced to Exit Realty, I was intrigued with a business model I had never seen. The culture of we help our people grow immediately impressed me. While providing state of the art technology, Exit Realty continues to emphasize the importance of relationships. The combination of providing incredible tools, exceptional service to owners, agents and staff, a strong emphasis on strengthening relationships and a compensation plan that rewards growth has created a culture that is truly unique in this industry. I believe my 40+ years in this business has prepared me for this journey and by joining the Exit Realty family I will create a legacy I will be proud to claim.
Kathy Schmalen is the owner of Che Sguardo in Chicago, IL and has extensive experience as an expert in both the professional image and beauty industries. A Miss Illinois winner and Miss USA semi-finalist, her career accomplishments include international modeling for top fashion and beauty industry icons such as Vogue and Harper's Bazaar, commercial styling/beauty consultations, national esthetic trainer for many international companies, and prominent activism in the Chicago area non-profit and philanthropic communities. Kathy established Che Sguardo/makeupstudio in 1984 with a focus on serving the commercial beauty industry, but also anyone who is passionate about healthy and vibrant living.
How do you work at home when your 2 young daughters have hijacked the Lucky Charms cereal to make a swimming pool for their Barbie Dolls all over your kitchen and still get work done? Super Mom and Co-Founder of Workman Success Systems, Brianne Workman Ika, shares how she really does get it done, carve out a little quiet time and still have some balance while smiling through it all.
A bit about Brianne:
Brianne is committed to the success of WSS coaches, clients, and an amazing team. She has spent the last 8 years working as Verl's right hand, and the last 5 years as the Co-Founder and VP of Strategy and Growth helping to build Workman Success Systems. She loves working alongside her brothers, and dad, every day and excited about the future of WSS.
California doctor has court hearing for traffic violation;
Logs into Zoom to appear for meeting with Judge;
Appears to be wearing operating room gear;
Appears to be in operating room;
Appears to be operating and performing surgery!
The court clerk asks, “Are you available for trial? It kind of looks like you’re in an operating room right now?”
Doctor: “I’m in an operating room. Yes, I’m available for trial. Go right ahead!”
Medical equipment, beeping in background, doc handling surgical tools…
On a court appearance Zoom call!!!
Response from the wise Judge:
“So unless I’m mistaken, I’m seeing a defendant that’s in the middle of an operating room appearing to be actively engaged in providing services to a patient,” Judge Gary Link said during the virtual hearing.
“I do not feel comfortable for the welfare of a patient if you’re in the process of operating that I would put on a trial.”
Ok, Time-Out.
Ladies & Gentlemen of the Jury, I would like to present my first case:
The Doctor in Surgery –
1. The Promise to show up for court is one level of keeping the promise.
2. The Promise to be fully present and focused only on the task at hand – meaning: your court appearance – is the next level.
3. The Promise to keep your client safe during surgery, and rescheduling your surgeries and court appearances, is another level entirely (that would seem obvious).
If I may, I’d like to present my second case:
The Judge –
1. The Promise to show up for court is one level of keeping the promise.
2. The Promise to be fully present and focused only on the task at hand – meaning: judging with all of your judging powers a doctor who has already missed a court appearance and is now on screen appearing distracted – is the next level.
3. The Promise to stop the trial mid-court time in order to ensure the safety of the patient, who is not your responsibility, while the surgeon acts recklessly, in defiance, to appear for court, is another level entirely.
The Jury finds the defendant, Doctor Surgery While On Zoom Guy, GUILTY of every crime against Zoomanity and sentenced to having a quick, un-announced surgery to be performed on him by a blindfolded surgeon while filmed before a live studio audience.
The Jury also finds the Judge, The Honorable Gary Link, the highest level of Promise Culture Leaders in the Universe and thanks him on behalf of all Humanity, as well as on behalf of the patient, who was about to lose potentially more than was scheduled.
Ladies & Gentlemen of the Jury, and this Blog, are you the Doc or the Judge?
Keep The Promise.
(* Note: This is a REAL STORY, link HERE, as reported by CNN)
Artificial intelligence (A.I.), one of the 20 core technologies I identified back in 1983 as the drivers of exponential economic value creation, has started out simple. From Amazon’s Alexa, Siri on your iPhone, or proclaiming “hey, Google…” in your home, there are several small but impactful applications of A.I. that have become fully integrated in our world today.
Now, following a historic moment in contemporary history dominated by a global pandemic, A.I. advancements have been turbocharged like never before.Consumer products that implement A.I. that have been in the spotlight for a handful of years are now having to share that fame with Information Technology (IT) solutions and its place in industry. If you haven’t already, from this point forward, it would be a good idea to keep a closer eye on A.I.’s rapid development and look for both predictable problems as well as amazing opportunities.
Disrupting IT Operations
Now that A.I. is starting to work its way into jobs and specific industries, many who turned a blind eye to its consumer and entertainment-based applications are now starting to get uneasy.
A job as an IT professional has been in increasing demand since the widespread growth of the Internet in the workplace, with the job market loaded with various opportunities. But as A.I. makes its way into the workplace, the tasks of an IT professional are rapidly transforming into something entirely different.
For example, A.I. and what’s called Machine Learning (M.L.) have the capacity to handle tasks that would require a large staff working around the clock, such as building a secure IT system. The fact of the matter is as the Internet and digital technologies evolve, so do cybercriminals. In order to prevent hacking and detrimental data breaches, an IT department at an organization must stay ahead of cybercrime.
What better way to do that than by implementing a system that can actually learn how to adapt to changing digital environments and know how to defend against them faster than a human cybercriminal can hack?
Artificial Intelligence In Manufacturing
A human’s physical ability to work in a manufacturing plant is not limitless in the traditional sense. We as people are sentient, emotional creatures; therefore, we require vacation time off, lunch breaks, and can at most work twelve-hour shifts before we start to clock out mentally, even if we are still physically on the job.
And consider how many individuals you need working on a line, each of their pay, and how many you need to switch in every shift change to keep up with the customer demands.
Working on an assembly line in a manufacturing plant is a prime example of what is referred to as Process Automation in the world of A.I. and M.L. What would ordinarily require a multitude of humans to perform physical, repetitive tasks can be accomplished by A.I. applications quicker and, much like the IT security system mentioned above, around the clock without needing to consider the labor rights of the machine.
Replacing Humans?
With advanced A.I. promising almost limitless possibilities that will enable businesses in every industry to make better decisions and complete tasks in far less time, what happens to humans in all of this?
Of course, entry-level workers all the way up to supervisors alike are worried about losing their jobs. We as humans like our comfort zones; however, there is no longevity in protecting and defending the status quo with rigorous fervor as the digital world around you speeds by like a bullet train.
It is crucial to recognize how the technological landscape is evolving before our eyes during this digital transformation. Yes, it is true that hundreds of traditional jobs are disappearing, which may leave many out of work, but it is also important to realize how there are a wealth of new roles and employment opportunities arriving that are needed to help us progress further.
Learn To Anticipate The World Of A.I.
The key is to implement my Anticipatory Leader System, which is developed based on the identification of Hard Trends – future certainties that will happen – and Soft Trends – future maybes that are open to influence. In doing so, you will be able to pre-solve problems with newly emerging digital disruptions before they disrupt and leverage those disruptions for game-changing opportunities in your individual career or organization as a whole.
As an organization, it is important to identify the Hard Trend of A.I. and M.L. Those technologies have been at play in consumer markets, such as smartphones, for years. I always say, we aren’t going to suddenly stop using Alexa or Siri, so the technology of A.I. is certainly a Hard Trend.
But the Soft Trend is how A.I. will be implemented as it grows in the manufacturing industry, IT, and beyond. How will you implement A.I. at your organization, and more importantly, how will you reposition your workforce to keep their jobs and work with the technology?
For every new technology, there is a “human side” or “soft science” to it, which cannot be automated. Consider the historic Miracle on the Hudson, where Captain Sullenberger took over the machine to save lives, whereas in that case, the machine was designed to follow a set of predetermined instructions that would’ve ultimately led the plane to crash.
There is always a place for humans in Artificial Intelligence and Machine Learning, and it is either up to you as a leader at your organization or an employee to become anticipatory in how you will work with it rather than fight against it.
From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.