Here is a contribution from my friend and colleague, Alan Lavitt (www.alanlavitt.com), in response to my article last week entitled, “The American Dream Has SHIFTed”.  Thanks Alan!  This is a great message!

I liked the write-up on “The American Dream has SHIFTed”.  For me as of today, my American Dream follows, this is from Napoleon Hill’s book “Think And Grow Rich“, it is entitled the 12 Pillars that constitute Enduring Riches” or I feel the “REAL” American Dream… 1.      Positive Mental Attitude – “Observe that it heads the list”2.      Sound Physical Health3.      Harmony in Human Relations4.      Freedom from Fear5.      Hope of Future Achievement6.      Capacity for Applied Faith7.      Willingness to Share ones Blessings with Others8.      To be Engaged in a Labor of Love9.      An open mind on all subjects toward all people10.  Complete Self Discipline11.  Wisdom with which to Understand People12.  Financial Security – “Observe; with great benefit, that money comes at the end of the list of the twelve things that make men rich”

When I sold real estate full-time as a career for several years, I was always telling my clients or even hearing other homeowners say, “Buying a home is living the American Dream!”

I don’t know when/where this phrase originated or who first coined it, however, it took off and has stayed a part of “Americana” as much as apple pie and the Stars & Stripes.

Admittedly, not having been married with a family of my own, I purely saw home purchasing as an investment to create financial wealth (hence why this has fallen into my wealth category this week in my newsletter).  I would have renters in my properties and/or purchase fixer uppers to eventually rent or sell immediately.  That was my use of the “American Dream”.

Yet as I look around today at the housing market, the economy, the mortgage banks closing left and right, the amount of foreclosures increasing every month (steadily so for the past two years) all over America…..I believe the American Dream has slightly been tainted, if not refocused - or as I am sharing today - SHIFTed in the minds of Americans (I’ll explain what this means in a bit).

I don’t believe buying a home is the real American Dream.   In fact, I don’t think it ever really has.  That was just something that somebody bought into long ago, maybe as a sales pitch from someone who thought it was a great way to get into the minds and hearts of those purchasing real estate.   And it worked - hook, line and sinker.

What people really want today (and what I believe they have always wanted and what the real “American Dream” is) is security.   Sure, one can argue, that a home can provide that.  However, as people wonder if they even have a home tomorrow, or a paycheck, or a job or their health…..is it really a home that will give them that “feeling” of security.  I think not.

People are abandoning their homes in droves these days and saving what little money they have, not to save their home, but rather to find an apartment to put first and last month’s rent on.  This I found out as fact according to my good friend and colleague, Alan Rhein, mortgage expert and loss mitigation supporter for those going into foreclosure.

Does that sound like the “American Dream” to you?

America is experiencing a SHIFT right now.

What is this SHIFT?

It is simply this: 

Super/Supernatural
Heightened
Instant
Focus
Transfer

People’s focuses have suddenly changed.  Shifted into a new gear of sorts.  The transfer, for most, has been immediate.   Some may have seemingly even been supernatural - seemingly out of this world, inconveivable.   No control could be maintained on your end.

People are scrambling to maintain their securities in this life, this human existence, so they can feel safe, so their families can feel secure, so at the end of the day, they have a place to sleep at night (whatever form that may come in these days), food on the table and some form of income coming in (and this, too, may not come in any normal form they had been accustomed to).

Yes, America is experiencing a SHIFT that hasn’t been felt this deeply, since reportedly the Great Depression.

How are you feeling this SHIFT?

I would love to hear how you are sorting through your life at this time.  

How has your definition of the ”American Dream” transformed? 

What super/supernatural experiences have you been having as a result of this change/shift? 

I don’t believe that not one single person, no matter how much of a positive thinker you are, no matter how much money you may have (or had), you are affected in some way.  If not directly, then indirectly.

Feel free to write to me and share your story.  I am compiling another ebook, possible book, that tracks these times and would be honored to have your SHIFT shared.  There will undoubtedly be many amazing comeback stories and life changing/enhancing transformations.

I wish you well on this journey of SHIFTing times. 

Hello,  Here’s an important book designed to raise your “sales IQ.” If you don’t yet have this book, you owe it to yourself to get it. For a limited time, you also get $3,000 worth of bonus sales tools. Don’t miss this deal! All the best,  

Yours in Transformational Success,

Lois Tiedemann

  Let’s face it, selling isn’t rocket science. It’s harder … To penetrate space, scientists need master only the immutable laws of mathematics and physics. Simple. So simple, in fact, the basics are taught in high school. Selling, on the other hand — prospecting, pitching, negotiating, closing and more — demands understanding the dynamics of the human mind and how to influence the myriad forces that inform its decision-making. Obviously, to succeed you have to know what you are doing! This book will transform you from a sales person with an average sales IQ (and income) to a brilliant top dog producer. Top Dog Sales Secrets is packed with real-life examples, successful scripts, and powerful, proven advice to rapidly increase your sales. You’ll learn how to: 

• Double your income by changing a few words
• Grab your prospect’s interest in 15 seconds or less
• Sure-fire ways to beat the price objection
• Leave voicemail messages that have prospects calling you
• Read your prospect in 60 seconds or less
• Be the big winner at the negotiating table
  and much more!

 Get your copy today and get $3000 in bonus sales tools!
 You are guaranteed to increase your sales IQ with this remarkable book! Get your copy today. It’s a genius move for your organization and your career. Click Here To Get Smarter   P.S. When you get your copy today, you’ll receive immediate access to over $3,000 worth of bonus sales tools from top sales and business growth leaders. You’ll get downloadable e-books, complimentary access to tele-seminars, audio programs, trial memberships, special reports and white papers. Take a look at your complimentary bonuses here.  

Courtesy of my good friend, mortgage guru/debt repair expert, Alan Rhein.
Thank you Alan for this GREAT and timely advice for my wealth. 
If anyone is offended by reading this, please accept my apologies in advance.  Not hear to offend anyone, just inform. 

For all of you with any money left, be aware of the next expected
Mergers so that you can get in on the ground floor and make some BIG bucks.

Watch for these consolidations in 2008:

1.) Hale Business Systems, Mary Kay Cosmetics, Fuller Brush, and W. R.
Grace Co. Will merge and become: Hale, Mary, Fuller, Grace.

2.) Polygram Records, Warner Bros ., and Zesta Crackers join forces and
Become: Poly, Warner Cracker.

3.) 3M will merge with Goodyear and become: MMMGood.

4. Zippo Manufacturing, AudiMotors, Dofasco, and Dakota Mining will merge
And become: ZipAudiDoDa .

5. FedEx is expected to join its competitor, UPS, and become: FedUP.

6. Fairchild Electronics and Honeywell Computers will merge together to
Become: Fairwell Honeychild.

7. Grey Poupon and Docker Pants are expected after their merger to
Become: PouponPants.

8. Knotts Berry Farm and the National Organiz ation of Women will merge
And become: Knott NOW!

And finally….

Hope you enjoyed the Chuckle for the day…

Are you a real estate investor who uses the 1031 Exchange benefit to save on taxes?
There has been some changes made in our real estate/housing market due to the economy and mortgage crisis (a.k.a. “opportunity”) in our nation right now.
Read on in an article contributed by my client/friend, Peter Hampson, Century 21 Beachside Realtor in San Clemente, CA. 
If you have any questions regarding this article, please contact Peter at 949-492-2729. 

Ammendment to §121 may affect §1031 Exchange Planning

The Housing Assistance Tax Act of 2008, signed by President Bush on July 30, 2008, includes a modification to the Section121 exclusion of gain on the sale of a primary residence.  This modification may affect taxpayers who exchange into a residential property, and then later convert the property to a personal residence, as explained below.

Under Code Section 121, a taxpayer can exclude up to $250,000 ($500,000 for married couples filing jointly) of gain realized on the sale of a principal (primary) residence if they have owned and occupied the residence for two years during the five year period preceding the date of sale.  Gain related to depreciation deductions taken on the property since May 6, 1997 is not eligible for exclusion.

Effective January 1, 2009, the exclusion will not apply to gain from the sale of the residence that is allocable to periods of “nonqualified use.” Nonqualified use refers to  periods that the property is not used as the taxpayer’s principal residence.  This change applies to use as a second home as well as a rental.

How does this affect 1031 planning?  Suppose the taxpayer exchanged into the residence and rented it for three years, and then moved into it and lived in it for two years.  The taxpayer then sold the residence and realized $300,000 of gain. Under prior law, the taxpayer would be eligible for the full $250,000 exclusion and would pay tax on $50,000. Under the new law, the exclusion would have to be prorated as follows (the example does not take into account deprecation taken after May, 1997, which is taxable anyway). 

• Three-fifths (3 out of 5 years) of the gain, or $180,000, would be ineligible for the $250,000 exclusion. 
• Two-fifths (2 out of 5 years) of the gain, or $120,000, would be eligible for the exclusion. 

Importantly, nonqualified use prior to January 1, 2009 is not taken into account in the allocation.  Thus, suppose the taxpayer had exchanged into the property in 2007, and rented for 3 years till 2010 prior to the conversion to a primary residence. If the taxpayer sold the residence in 2012 after two years of primary residential use, only the 2009 rental period would be considered in the allocation.  Thus, only one-third (1 out of 3 years) of the gain would be ineligible for the exclusion. 

The allocation rules only apply to time periods prior to the conversion into a principal residence and not to time periods after the conversion out of personal residence use.  Thus, if a taxpayer converts a primary residence to a rental, and otherwise meets the two out of five year test under Section 121, the taxpayer is eligible for the full $250,000 exclusion when the rental is sold.  This rule only applies to periods after the last date the property is used as a principal residence.  Therefore, if the taxpayer used the property as a principal residence in year one and year two, then rented the property for years three and four, and then used it as a principal residence in year five, the allocation rules would apply and  only three-fifths (3 out of 5 years) of the gain would be eligible for the exclusion.  

With over 4 million homeowners either struggling to make their monthly house payment or going into foreclosure, our country is doing everything it can to balance out this “opportunity” we find ourselves in.

With the Government’s recent overtaking of Fannie Mae and Freddie Mac, there is hope that better times are ahead.

In the meantime, what can YOU do to be proactive and save your home?

Having gone through foreclosure myself, I can be a living testimony that, Yes, there is life after foreclosure AND you don’t have to lose yourself in finding ways to recover and create normalcy in your life again. 

I have access to an attorney driven company that services distressed homeowners in 41 states.  
This company specializes in helping people find alternatives to foreclosure and the loss of their home.  Their objective is to make sure that you realize no matter how bad your situation has become, it may be possible to avoid foreclosure if you take PROMPT ACTION!

Together, you may be able to resolve your delinquency without a foreclosure or sale of your home.  No one succeeds alone!  Even in the mortgage and foreclosure process.

The loss mitigation services include loan modification: Lenders may agree to modify the terms of your loan, such as reducing monthly payment amounts, reducing the loan balance, or the interest rate, or fixing an adjustable interest rate.

Homeowners do not need to be late in order to assist them with a loan modification.  If you are taking money from your savings and are about to run out, eventually you will not be able to make the required mortgage payment.  If you take a proactive approach we can help you save your home and credit. If your income has been cut in half, your business has slowed down, illness in the family, you are upside-down on your property, we can help.

You do not have to have good credit or equity in your property. 

If you, or someone you know, wants help at this time, don’t hesitate to contact me at 949-940-0399 or Lois@TransformedTriathlete.com and I will connect you with the resources to help you.  If nothing else, I can also lend you a listening ear as one who has gone before you and knows what it feels like to be where you are.

Here’s to you!

A great article from my colleague and mortgage contact, Bruce Dippong.  There are a lot of reports out there about what is going on in the mortgage industry and you might be wondering which one to believe.  Here is one more update that may very well just be closer than most.  I’ll let you be the judge.

Lots of rumors, lots of news, lots of speculation…. Here is what we have been told from our sources up to now on the Housing bill. Please understand that these are NOT set in stone and have NOT been finalized. We just want you to know what we are being told up to this point.• 3.5% minimum cash investment for FHA loans (gifts allowed from family members, unions, state and local bond programs, etc).
• Seller-funded DPA to end, credit approval required by 9/30/08
• 12 month moratorium on FHA risk-based ) as the new FHAJpremiums effective 10/1 (this should be an insuring nightmare  risk-based premiums went into effective on Monday 7/14.
• Streamlined approval process for FHA condos
• No change to FHA approval requirements (no surety bond in lieu of audited financials as has been lobbied by the Mortgage Brokers Association)
• Nationwide licensing system for loan originators (this is NOT a bad thing if it passes!)
• FHA ceiling at over $700,000 for Orange County/Los Angeles; ceiling for Fannie/Freddie at $625,000 (again, NOT set in stone yet!)
• VA should have equivalent guaranty to raise limit to $625,000 (from $417,000- again, NOT set in stone yet!)

As mentioned nothing has been set in stone, but changes may be happening sooner than expected. 

Questions, concerns, thoughts? 

Bruce Dippong

Senior Mortgage Planner

iQuest Mortgage

949-888-4485  office

949-842-1090  cell

714-242-9931  fax

P.S.  IF you would like information regarding an 18 page report we have put together for you and your prospective clients please contact Bruce.

If you, or someone you know is facing the loss of their home because the mortgage is re-adjusting, through foreclosure or short sale here is a resource that can keep them in their home. 

Gateway International developed a program for families who have nowhere else to turn. Instead of losing their homes because they can no longer afford re-adjusting loan payments or are close to foreclosure and sale, this program offers an extraordinary opportunity for a fresh financial start without being encumbered by a foreclosure, delinquent property taxes, bank costs and fees, a mortgage paid short on their credit or income tax liability from a short sale. Most homes have lost a significant portion of their value. In combination with higher costs of living, more difficult loan guidelines and higher interest rates homeowner’s can no longer qualify for affordable loan payments to resolve their situations. 

Owners with higher house payments from re-adjusting loans often pay one month and skip the next just to stay in their homes a few months longer.  Some work 2 and 3 jobs to stay ‘even’. Many live on credit cards, making their situation much worse. Increasing numbers are at high risk of losing their home because they are 30, 60, 90 and more days late. It is blatantly clear that banks are in serious trouble, yet seem to have no interest in working to fix the problems they helped create!    Gateway International’s programs are ‘outside-the-box’ legal and ethical solutions offered to families who do not want foreclosure or a paid short mortgage on their credit report. Our website explains Gateway’s programs and describes how families can stay in their homes and regain their financial footing by getting completely out from under the burden of a maxed out and upside-down mortgage.

Visit our website for more information: www.KeepUsInOurHome.com 

It just feels right to help people, doesn’t it?

What if you could earn a living by simply helping
people improve their lives?

Have you ever wanted to work from home, travel
whenever you want?

You may be able to do that by watching a no-cost
VIDEO course below. 

But before you do, let me introduce you to one of
my colleagues and friends.

His name is Jeffrey Sooey and he helps his
clients solve problems every day.  It doesn’t
hurt that he gets paid well to do it either.
More importantly though, he LOVES it.  It’s the
most fulfilling thing he does.

Jeff also trains people like you and me, people
who like to help others, to do what he does.  He
trains others to become coaches.  The cool thing
is now he is doing it at no-cost on VIDEO.

http://www.coachestrainingblog.com/lois

But I’m getting ahead of myself again.  Let me
tell you a little more about Jeff.

His career began 10 years ago when he went to
work for that big tall coaching guru guy you’ve
seen on TV.  You know, the guy with the big teeth
that they are always poking fun at in the movies?

Well, in reality that guru not only knows his
stuff but he means serious business.  And he has
helped literally millions of people.  And while
working for this man, Jeffrey lived through what
he calls the “immersion process”.  And it was
this process that taught him how to do his magic

But after leaving this personal development
success giant, Jeffrey didn’t stop learning.  He
read 150 books on the subject, attended hundreds
of hours of training courses and poured his heart
and soul into further mastering his craft and
figuring out how to attract the clients who need
help, and then turn them into regular paying
customers.

To be fair, Jeffrey is no GURU.  He is amazing at
what he does, but he is also at the RIGHT PLACE
at the RIGHT TIME.

See, Jeffrey tells me that the coaching industry
is estimated to be over US$100bn a year
worldwide.  The Sydney Morning Herald reported
that coaching was the second fastest growth
industry. There are 50,000 Google searches per
month from people looking for a coach. 1 out of 5
Fortune 500 companies now has a coach for each of
their senior executives. 

And it is also a very fulfilling career.  Just
ask Jeffrey or any of the thousands of coaches
out there.

Even better, nearly anyone can do it.

If you are interested in learning more, Jeffrey’s
team is standing by to answer your questions –
and if the telephone lines are busy, just keep
trying back.  Here’s the number:  619-286-1797.

And, if you don’t want to wait to get through to
someone, or take the time to call, you can always
GO HERE AND WATCH THE VIDEO COURSE.

http://www.coachestrainingblog.com/lois

This first video shows you Jeffrey’s “secret
weapon” that’s played a major part in his going
from “living in a trailer” broke to having a
growing coaching business that makes $30,000 per
month.

You don’t have to do anything to watch it …just
go here and it’ll play:

http://www.coachestrainingblog.com/lois

These short videos will also help you understand
if coaching might be for you.

You’ll also have the opportunity to get limited
complimentary access to more video training
sessions and a Performance Profile that is
amazingly accurate.  This profile you can take at
no-cost has over 40 pages of information about
YOU.  When I read MY results I THOUGHT A PSYCHIC
HAD BEEN READING MY PALM!

I sincerely hope you take this opportunity.
You’ve got nothing to lose and maybe in the
process you will learn a few techniques that you
can use to help your friends and family for the
rest of your life.

By the way, over the next few weeks, Jeffrey is
going to add some AWESOME content on:

1. How mangers can use coaching techniques to get
more from their staff
2. Advanced coaching techniques
3. How to become a professional coach making over
$100 / hour

After hearing Jeffrey’s history, I learned that
you need to get the REAL story in order to
understand how you can get all these results.
That’s why he put together this video course.
And there’s only one way he can share his story
with you…

He has to take you deep inside his sometimes
twisted world of coaching.

GO HERE if you want to be a professional coach:
http://www.coachestrainingblog.com/lois

GO HERE if you want to use coaching skills in
your business/management:
http://www.coachestrainingblog.com/lois?sp=managers

Yours in Transformational Coaching Success,
 
Lois Tiedemann 
 
P.S. The statements Jeffrey makes sound like a
stretch.  But you need to get the REAL story.
That’s why he put together this video course.
And there’s only one way he can share this story
with you… he has to take you deep inside the
sometimes twisted world of coaching.
 
GO HERE if you want to be a professional coach:
http://www.coachestrainingblog.com/lois

GO HERE if you want to use coaching skills in
your business/management:
http://www.coachestrainingblog.com/lois?sp=managers

Looking to invest in real estate?  Consider Phoenix, Arizona’s market this summer - it is not only heating up temperature wise, there are also hot opportunities for the perfect investor situation.  READ ON!
Market update provided by The Walsh Team   (also formerly known as LTSELLS TEAM) at Keller Williams Realty

July 2008

Home Prices - PHOENIX, ARIZONA UPDATE

Average home prices continue to drop. This started in June of 2006 when the median listing price was at $300,000. The median listing price is now down to $220,000. But, we are about to reach a level that would reflect a normal price increase for the market based on the 2001 to 2004 numbers, where we saw a steady 4-6% increase in values. At the current drop in average prices (driven by the current number of foreclosure deals out there) we should hit the trend line in about 2 months. There is a strong possibility that at that point we will see a rise in average prices and that will truly be a turning point in the market: both in terms of activity and price levels. If all these numbers hold true then the investment window is now down to 60-90 days.
It will be interesting to look back in the fall and see how accurate we were.

Foreclosures

Interesting numbers for June. There are two significant numbers to look at according to Realty Trac, one of the main foreclosure monitoring companies. First of all, in June there was a dramatic jump in the number of foreclosures (properties taken back by lenders). This means there will be a continued investment opportunityas the banks put these properties back on the market, especially at the lower end of the price spectrum. The other number, foreclosure notices, is very significant if the number holds for another month or two. Currently, foreclosure notices are down dramatically, which may signal an end to the wave of foreclosures coming on the market.We will continue to monitor this number closely. If the wave of new foreclosures ends, then as soon as the last batch of foreclosures are bought up by investors and bargain hunters, the window will completely close and all those fence sitters will jump in (typically too late to take advantage of the real bargains) and start driving prices up again.

More Good News Numbers
Inventory (supply) down: For the fourth straight month the total inventory has dropped. We are still in the 50,000’s which is high but the trend is down.
Sales (demand) up: Closed sales for June are close to 6000 and double what they were per month during the slump in 2007.
Forecast: pending sales for July are above 7000, so it is safe to conclude that the trend will continue.
The inventory at the current absorption rate (time to clear out the current inventory) has dropped to 9 months from over 20 months in 2007. The last time we saw these numbers was in Spring of 2007.
Conclusion: The market is continues to gain momentum.

The Real Estate Market continues to recover
Don’t sit on the fence until it’s too late!
Call us-We are ready to help!
The Walsh Team

(602) 369-3224
pwalsh@kw.com
www.tempe-listings.com
http://greatarizonahomes.biz/