TeamResults

On Wednesday night around 9:30, a unit in the Galaxy Tower's caught fire which claimed the life of a 60 year old man who faced the decision of jumping from an 18th story balcony or burning to death as he screamed for help.

The full details of the incident can be viewed on LAtimes.com, Presstelegram.com, or any of the Los Angeles Television Network websites. This story is close to me because I live next door to the Galaxy towers and my family were ordered out by police, and fire officials because of flaming debris falling in our yard and on our rooftop. I'm glad to say we're all okay, but the reason I felt the need to post this was, because, at the moment we were ordered out, chaos struck, our "disaster plan" didn't fall into place and we scrambled to gather everyone together along with pets, litterally tossing them into cars and taking off as quickly as possible.

As time went on and the emergency declined; I began thinking... Did I change the batteries on the smoke detectors? when was the last time the alarm was tested? Why couldn't I find my car keys? Along with a million other "why's", "what-ifs", and "where is" questions. The truth is none of us can truely be prepared for everything, but by taking simple steps, we can be as prepared as possible.

I'd like to remind everyone, not to wait any longer, get a plan, get supplies, and get to work. Tragic events like these happen too frequently, and we can limit them by staying on top of our emergency prepardness.

Check your smoke detectors, make sure you have plenty of fire extinguishers, and keep emergency supplies handy and near the exits so you can "grab-n-go". If you have pets, keep leashes, and carriers nearby also. And while your at it, make sure you know where your keys are.

Thank you.

A long awaited law makes PMI (private mortgage insurance) deductible on homeowner's taxes. Homes that are purchased or have been refinanced in 2007 are eligible for this deduction.

PMI is an insurance policy on most home loans that carry less than 80% LTV (loan-to-value). The policy covers the lender against loss in the even of borrower default.

Many homeowners consider PMI to be frivolous and excessive; of course anything that increases housing cost doesn't exactly instill a warm, fuzzy feeling in those paying them. This new deduction at the least softens the blow for many.

Also, as a reminder - Most PMI can be cancelled when LTV hits that magic 80% mark. Usually all it takes is a phone call or a letter in order to cancel this coverage (if the borrower is paying the premium), but there are cases where it might be more difficult.

If your home is financed under an FHA mortgage, you may mistakenly believe that you are paying for PMI. The insurance coverage on a government loan is a whole different animal and has a different set of rules. For more information on that, please feel free to e-mail TeamResults@Century21.com, I'll be happy to provide any information I can.

If you haven't done your taxes yet, see my post on that here.

John Wall
CENTURY 21 Results

This post is for information purposes only and should not be relied upon in any financial / or tax planning decisions. Always seek the advice of a qualified expert.

My team and I are working on a new website. www.teamresults21.com, Still in the planning stages - we hope to make it the online source for Long Beach real estate. Most agents have personal web pages, and in this day and age having one is essential to staying in business. I've had websites and web pages since the days of per minute dial up access charges, and from those ventures, I've learned a few things.

So here's what we're doing...

Keeping it simple.

Having dynamic and current content.

Keeping communication easy, fast, and effective.

soon our clients will be able to log in, and view their transaction documents, print forms, sign documents and FAX them back into the system. So check it out, let me know what you think, and if you'd like to see something special... tell me that too.

 Thanks,

John

The Los Angeles Times reported today that new home sales has declined nationally, but, California showed strength.

The article cites buyer's response to builder's discounts and incentives to be the source of California's new home sales strength overall. Reported national sales figures were down 18.3% and showed western state's new home sales up 24.6%. (California's figures included with ‘western states'.)

Orange county showed the second highest gains at 16% for California and Sacramento took the number one spot at 37% increase.

So come on builders, bring your bulldozers and lets sell some homes. Even if it does take a few years to get past the EIR stage. J

TeamResults@Century21.com
John Wall, Residential & Investment Properties
Long Beach, CA. (562) 433-1914

We as agents and members of the real estate community often talk about saving money when buying a home. Savings might be commission amounts, reduced asking price, seller paid, closing costs, etc.

Something we don't often talk about and should is; saving money on your homeowner's insurance policy. Every home needs to be insured and sometimes the cost of insurance makes consumers take less coverage. Here are some tips to lower your homeowner's insurance cost.

• Shop around. It takes time but could save a bundle.
• Raise your deductible. The deductible is the amount you have to pay towards a loss. A higher deductible, generally means a lower premium.
• Don't confuse what you paid for your house with ‘rebuilding costs'. The land your home is on isn't at risk from theft, or other perils. Don't include the cost of land in your coverage.
• Take advantage of multiple policy discounts. Often if you insure your home and car with the same company, you'll receive a discount on the premiums for both.
• Maintain a good credit record. Companies will use your credit report to determine the price you pay for insurance.

If you would like more information, please contact us be e-mail and request our free brochure, 12 Steps to lowering your homeowner's insurance costs. Include your postal address.

TeamResults@Century21.com

The ongoing reporting of the ‘crisis' in the mortgage industry took a turn today when Wells Fargo & Co. reported that it is committed to providing sub-prime (higher cost/risk) loans to borrowers. The company insists they continue to do so in a responsible way, citing the need of some borrowers to opt for sub-prime funding in order to get started.

As companies in the mortgage industry continue to take the heat for high losses and in the case of New Century, face deadly decline in share price as well as possible legal woes, Wells Fargo & other larger, well diversified, & respected lenders have taken less of a fall.

This information compiled from news sources by Team Results. Contact via e-mail at TeamResults@Century21.com. Serving Southern California's coastal and surrounding communities.

"The difference between Ordinary & Extraordinary is that little Extra"

-

John Wall, Residential & Investment Properties
CENTURY 21 Results Inc.
(562) 449-8421

Most families use their refrigerator as a showplace for children's art, family photos, funny magnets and reminders. However, when a house is for sale, all these things should be removed. Instead show buyers a clean, uncluttered space.

Make sure the countertops are as empty as possible. Just a toaster or perhaps a coffee maker should remain. Everything else should be put away. Clutter-free countertops make a kitchen seem bigger.

Go through all your cabinets and drawers. Get rid of unwanted food. Put dishes and glasses you don't use away. The same goes for appliances and utensils. Extras like waffle makers and slow cookers should be temporarily stored away. And remember to tackle that "junk drawer" too. Cabinets and drawers will seem more spacious if they are emptier.

If you need to clean up your credit score; you don't have to call one of those 1-800 numbers. Which you should be cautious of anyway.

There are simple things you can do yourself that may dramatically increase your score. First off, obtain a free copy of your credit report from each of the three major credit bureaus. You're entitled to 1 free copy each year, an more if you meet certain conditions.

With reports in hand, look for past due balances and bring them current. If you have many outstanding debt, bring them as close to zero as possible. Paying the most recent debts first, then older ones.

Consider distributing remaining debt among open credit lines. Your goal is to spread out your debt so that your balances are below 50% of available credit. Do not close existing accounts, and in fact, it might be beneficial to open a new account and transferring some old debt to it.

If you are married, keep separate credit cards. Doing so will enable the two of you to distribute debt out to adjust one spouses score. Requesting an increase in available credit will reduce your debt ratio and most credit card companies will gladly increase the credit limit on a card you've carried for a long time, and have a good payment history.

Past due balances and charge off's that are 2 years old or newer should be paid off. Longer than that and you can actually lower your score temporarily. Most importantly, if there is any information that is incorrect on your report, you need to request that the credit bureaus remove the inaccurate information. They have an obligation to take action within 30 days of your request.

For more ideas or help creating a personal plan of action, please feel free to e-mail TeamResults@century21.com.

(c) 2007 John Wall.

Banks and lenders want to loan money to people who have the ability to pay back the debt. That's why they will look closely at your credit score or FICO score during the application process. The score is a number, generally between 300 and 850, that indicates how much risk is involved in lending you the money. It is determined using a statistical model and is based on your credit history. The higher your FICO score, the better.

So now you may be wondering, what causes someone to earn a low FICO number? Here are five things that can adversely effect your rating.

1. Late Payments - Failure to pay your bills on time can drag down your score. This includes credit cards, utilities, school loans and other debts. The later the payment the more damaging the effect. It is also important to note that late payments stay on your credit history for a period of seven years.

2. Maxed Out - If you are carrying a lot of debt or are close to your credit limit on several accounts, you could be seen as high risk. In other words, the lender sees you as someone who is spread too thin and may not be able to make future payments.

3. No Track Record - Lenders also look at the length of your credit history. If you've only had accounts open for a short period of time that could hurt you. Lenders want customers with a proven track record, where history shows they are able to pay back debts over a significant period of time.

4. Not Diversified - One credit card, also called a revolving account, used consistently and paid on time may not be enough for some lenders. A good mix of credit, like car loans, other mortgages, school loans in addition to revolving credit is viewed more favorably.

5.Too Much? - If you've opened several new accounts recently, it may raise a red flag. Your score will factor in the number of new accounts versus more established ones.

Some content (c) 2007 CENTURY 21 REAL ESTATE, LLC. All Rights reserved. Re-printed under license agreement.

 John Wall, Residential & Investment Properties - CENTURY 21 RESULTS, TeamResults@Century21.com

Real estate can be one of the best ways to put your money to work. Historically speaking, real estate investors who do it right have seen steady returns. If you are considering buying as a business enterprise, consider these four points.

1. Do your homework -Know your finances inside and out before you buy. Although you may be able to count on rent to defer some of your costs, be sure to factor in renovations, emergency repairs, vacancies, recurring costs and other expenses.

2. Know your strategy - Is your plan to buy a home, renovate then sell it for a profit? Do you plan to hold onto the property for the long term? Come up with a specific plan with benchmarks that will help you determine if you are meeting your goal.

3. Location - Whether you are buying residential, commercial or vacation property, pay special attention to location. It is often better to purchase a mediocre property that can be renovated in a prime location than to buy in a less desirable area.

4. Know the tax implications - There are definite tax benefits to owning a second property, but there are also repercussions when it comes time to sell. Capital gains tax must be paid on profits from a real estate sale. If you plan to use the proceeds to buy again, look into a 1031 tax deferred exchange. This provision allows you to defer capital gains and roll-over the funds into other real estate investments.

 Some content (c) 2007 CENTURY 21 REAL ESTATE, LLC. All Rights reserved. Re-printed under license agreement.

 John Wall, Residential & Investment Properties - CENTURY 21 RESULTS, TeamResults@Century21.com