Author: msundermier

Preach What You Practice

The old adage “practice what you preach” is sound advice.  Actions always speak louder than words, and no one wants to be preached to when those words are not backed up by supporting actions.  When wanting to teach or share wisdom with others, you must practice what you preach.

I was recently reminded, however, that when wanting to learn from yourself, you must also preach what you practice.  Last week I was invited to be a panelist to discuss referral marketing.  As a professional who has primarily built my business on referrals within a competitive industry and during a difficult market cycle, I was excited to share my insight.

In participating on the panel, “preaching” my practice reinforced to me the most important elements to my business.  I also realized there is room for improvement in my own business on the very things I was suggesting to others.  Simply put, sharing insight with others reminded me to follow my own advice.

We must make sure we’re listening to and applying our words to our own lives.  This is true not just with business practices, but also with our values, faith, and daily habits.  Yes, it can be easier to keep these things to ourselves and not “preach” to anyone, but in doing so we can skirt accountability from ourselves.  If you tend to be introverted with your “practices” (as I am), then challenge yourself to “preach” from time to time.  Don’t preach to be the revered or all-knowing preacher, but rather to encourage self-reflection and reinforcement of your own practices.

The most significant suggestions I gave as a panelist emphasized the importance of actively asking for referrals and regularly describing the impact referrals have on your business; I was preaching what I practice.  I realized, however, it has been some time since I’ve done that with my own clientele.  You surely know my business grows from your referrals, and for that I am incredibly grateful & fortunate.  Through your referrals I am able to focus on serving my clients rather than devoting resources to marketing and making new contacts.  I get to spend my time on you, and do a superior job as both a mortgage consultant and REALTOR. 

The real estate industry has changed dramatically, and it has become even more paramount for people to find a trustworthy, knowledgeable, and devoted consultant when wanting buy, sell, or finance a home.  The current market has also created a perfect storm for home buying and refinancing.  Interest rates below 6%, home prices at decade-low levels, and tax incentives for 1st time home buyers have made real estate a hot topic in our struggling economy.  You will surely have a conversation with someone in the near future that could benefit from my services.  I encourage you to pass along my contact info in order to help them receive trusted and comprehensive service, to help you so I can keep my focus on my valued clients, and to help me continue to follow my business plan of growing a referral-based business.

Thank you in advance for your referrals, and remember to occasionally preach what you practice in your life.

Win Some, Learn Some

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I once had the privilege of attending a seminar and listening to an interview with Michael Phelps, the most decorated Olympian of all time.  While Phelps epitomizes winning, I most enjoyed his stories of losing.  It reminded me that the greatest opportunities for growth are the times we don’t prevail.

 

Phelps recounted a race several years ago where an Australian, Ian Thorpe, was the heavy favorite and world record holder of the 200-meter freestyle event.  At the time, freestyle was not Phelps’ strongest event, but he wanted to race regardless.  “I had no business being in the pool with him, but I always want to compete against the best,” he said.  Phelps did not win the race, but he learned.  He learned about his competition, he learned about himself.  Losing also gave him more motivation to win.  In 2008 at Beijing, Phelps won the gold in the very same event, clocking a new world record in the process.

 

Some say “you win some, you lose some.” I prefer to say “you win some, you LEARN some.”  Losing happens too often in life for it to be the end result.  The key is to make losing manifest into positive learning.  With this perspective, you always win. 

 

I recently applied for something where I had no business “swimming” in the particular applicant pool.  It required a tremendous amount of work, introspective reflection, and exposure to nay-sayers.  Like most dreams, it was scary to pursue.  While I didn’t win, I learned.  I learned that reaching for a lofty goal never ends in failure, that being your best requires help from the best (i.e. – my wife), and that competing is always better than idling through life.

 

Whether you’re an athlete striving for gold medals or a desk jockey working towards a promotion, we all should be competing.  Most of us aren’t Michael Phelps, however, and we will lose our fair share of races.  But don’t let losing scare you away from competing.  The losses that can fuel your growth will always be more valuable than the victories that feed your ego.

Loan MODIFICATION Opportunity, courtesy of President Obama

In my previous post I shared my excitment over a new refinance program.  Over the last eight days I have identified many of my clients as potential benefactors of this program.  Others, however, are not eligible for one reason or another.

As an alternative to this new refinance program, The Obama Administration has also released a universal loan MODIFICATION program.  A modification is different from a refinance in that you work with your current lender to modify the terms of your existing loan rather than obtaining new terms on a new loan.  Modifications are generally treated on a case-by-case basis, and up to this point modifications have not been wildly successful for homeowners nor banks.

Obama’s new program, however, provides guidelines for banks to follow when working through modification agreements, and financial incentives to both home owner and lender for maintaining successful modification terms.  These elements will hopefully increase the effectiveness of modifications and ultimately keep more people in their homes and keep fewer homes up for sale.

An article was just published by CNNMoney.com and announces that some of the biggest lenders and mortgage servicers in the country have begun to participate in the loan modification program. 

If you have either independently determined or had my help in determining your ineligibility for the new refinance program, go to this link to help determine if you are eligible for a loan modifiaction.  This site is a great resource for information on how the modification program works.

I hope this information is helpful.  Let me know if you have any questions.

New Refinance Opportunity, courtesy of President Obama

As you may know, President Obama and the US Treasury have developed a program called “Making Home Affordable” that aims to allow homeowners to refinance at competitive rates even though they may not meet traditional credit and/or home equity requirements.  I believe this program has the potential to open doors for millions of Americans to refinance into super-low fixed rates despite their falling home values, and I want my clients to be the first to seize this opportunity. 

 

The program was announced in early March, and it has taken several weeks for the lending industry to determine how to best implement the program.  Over the last two days, however, the following feature highlights of the program have been announced:

  • Loan-to-value percentages of up to 105% will be allowed, meaning homeowners who have little to no equity may be eligible to refinance
  • No mortgage insurance will be required if the current loan did not originally require mortgage insurance
  • No credit score minimum, but you must have solid mortgage payment history
  • Loans up to $417,000 will be eligible
  • Primary residences, vacation homes and investment properties are all eligible
  • Only loans that are currently owned by Fannie Mae or Freddie Mac will be eligible

Beginning next week, “Making Home Affordable” refinances will be offered by two of my top lenders!

 

My team and I will be working over the weekend to exhaustively review hundreds of our client’s situations to better determine who may be eligible for this unprecedented program.  Simply email me at to indicate you would like me to research your eligibility and contact you as soon as possible.  Also, don’t be shy about forwarding my blog to your friends, family, neighbors, and co-workers who may benefit from this program.  I’m sure you have someone you care about that needs this refinance opportunity to improve their financial well-being.  It would be my honor to take care of your loved one in the same trusted manner I have done for you over the years.  Remember, referrals are the heart of my business.

 

As your committed mortgage and real estate consultant, I am excited about proactively working with you in the coming days to take advantage of this long awaited and valuable opportunity.

 

March 2009: Hurricanes

If a hurricane doesn’t leave you dead
It will make you strong.
Don’t try to explain it, just nod your head
Breath in, breath out, move on.
Jimmy Buffett, “Breath In, Breath Out, Move On”

These lyrics come from one of my favorite Jimmy ballads (listen to the song here), and they are words that resonate loudly in our world right now.  As a professional in the “eye” of the real estate market, I discuss figurative hurricanes on a daily basis with clients.  There is no shortage of hurricanes, but in all likelihood the hurricanes we are facing won’t leave us dead.  But how will we let them leave us?  Weaker or stronger?  Jaded or wiser?

I mistakenly am hung up on trying to explain life’s unexplainable hurricanes, such as the financial hurricane surrounding us all.  Over the last several months my laissez-faire philosophy on economics has been rattled.  Contrary to my previous beliefs, I now believe freely allowing capitalist forces to take their natural course has negatively exaggerated the boom and bust of this decade’s economic cycle as the policies of few have affected the lives of many.  I have explored explanations by revisiting an extremely influential book on my economic beliefs, The Worldly Philosophers.  While I have found new insight while re-reading the chapters about Adam Smith, John Maynard Keynes and other great economic minds, there are obviously no explanations.  The current financial leaders of our world don’t seem to have answers; I should expect no more from myself.  I need to learn to just “nod my head”, accept the hurricanes outside of my control, and trust in my faith rather than my logic to explain life’s conundrums at the appropriate times.

Above all else, we should adopt the title of this song into our daily lives.  While it’s important to allow our struggles to make us stronger, and our faith to make us enduring, those mantras are useless unless we can learn to “move on” from difficult times.

January 2009: My Market Forecast

 

crystal-ball

It has become tradition to take out my crystal ball at the beginning of each year and try to foresee the future, but also re-cap my previous year’s market projections.  New to this year, however, I hope you too will share your own market opinions through an on-line survey (see below).  Enjoy my market guesses for what they are (guesses!), and I will look forward to hearing yours.

As always, I simplify my housing market forecasts into 3 categories: supply, demand, and interest rates.

 

Supply
‘08 Projection: “I expect only homeowners who must sell their homes will be trying to do so in 2008, which will help prices stabilize by the end of the year.
‘08 Result: In Sacramento County, the median home price fell $100,000 to a new decade-low of $180,000.  But, during the 1st half of the year they fell markedly faster than the 2nd half of 2008, showing a slow-down of price drops.  From September to December, the median home price fell less than $15,000.  Additionally, there were 28% fewer homes up for sale in Dec. 2008 compared to Dec. 2007.
’09 Projection: Supply will remain low until April because many banks opted to not foreclose on properties during December and January.  Once those back-logged repossessed homes hit the market in the spring Sacramento will likely see a large number of homes for sale.  If I had to guess, the number of homes for sale will roller-coaster up and down throughout the year, and end up close to it’s current level.

 

Demand
‘08 Projection: “Buyer demand will…strengthen…as buyers get off the sidelines and pounce on amazing deals the Sacramento region has not seen since 2003.
‘08 Result: Contrary to main-stream media, gobs of Sacramento home shoppers bought in 2008.  According to the Sacramento Association of REALTORS, 81% more homes were bought in 2008 compared to 2007.  Most of these homes were at the entry-level price ranges (which largely contributed to the big fall of the median home price).  First-time home buyers and investors alike found many affordable homes with monthly mortgage payments comparable to a monthly rent payments.
’09 Projection: While the global economic crisis has raised fears as to whether home prices will continue to fall, I believe low prices, low interest rates, and tax incentives will keep entry-level buyers extremely active in 2009.

 

Interest Rates
‘08 Projection: “Mortgage rates will be incredibly low…as the economy will slow further…with sluggish employment and consumer spending figures.” 
‘08 Result:  Mortgage rates ended 2008 at ridiculously low levels, with 30 year fixed mortgages below 5%.  Most zero and low down-payment programs went away last year, leaving only well-qualified borrowers with these super-low rates.
’09 Projection: With continued government intervention, mortgage rates will remain well below 6% for the year.  Lending guidelines will remain tight, but those able to qualify will have unbelievable refinance and home buying opportunities.

Looking back, my crystal ball was working fairly well in 2008.  As our economic challenges widen and government interventions heighten, the housing market will be increasingly dynamic and unpredictable.  Nevertheless, it’s fun to predict and I would love to hear your market predications.  Fill out this brief survey, and I will compile and share the results of these surveys with you next month.

Regardless of the market’s behavior, I look forward to providing insightful, professional service to you and those you refer me in 2009.

November 2008: My Favorite Quotes from Leaders

7765_photo1_fuRegardless of how you voted in this year’s presidential election, I hope you had the opportunity to watch Barack Obama’s acceptance speech on election night.  Even though he will lead our country in a time of enormous doubt and difficulty, his speech was laced with optimism and potential for a “brighter day.”   It reminded me of some of my favorite quotes from other leaders in history:

“Success is not final; failure is not fatal.  It is the courage to continue that counts.”
-Winston Churchill
Our economy has fallen flat on its face as of late.  Many have predicted Depression-esque conditions that will plague our country for years to come.  I encourage you to ignore those dramatizations.  While many consider our certain elements of our economy and banking system as failing, their circumstances are not fatal.  They will recover, and that determination to recover is what makes America great.

“A people that values its privileges above its principles soon loses both.”
-Dwight Eisenhower
Our government has been handing out bailout packages left and right.  With all of this bailout talk, it would be easy for us as individuals to put our hands out to the government and ask “wheres MY handout?”  We are privileged to live in a country with such means, but do not let this privilege cloud the principles that make the independent, can-do spirit of America so strong.

“Weakness of attitude becomes weakness of character.”
-Albert Einstein
I LOVE this quote.  As you may have come to know about me, I believe attitude is everything. Our country faces a difficult road ahead in economics, politics, and war.  You too may be facing challenges with an unstable job outlook or ailing health condition.  Don’t let these problematic events take away your positive attitude, for doing so will make your challenges even harder to overcome and bring on additional ones in the future. 

“Recession is when a neighbor loses his job.  Depression is when you lose yours.”
-Ronald Reagan
Keep in mind that our economy’s struggles are affecting us all differently.  Just because your job, finances, and investments have remained in tact doesn’t mean that others have fared as fortunately.  While news anchors may debate the definition of a recession, be considerate to others whose hard times are all the evidence they need to understand the state of our economy.

I’m not talking about politics; I’m talking about attitude.  Like President-elect Obama said about our county’s future; “the road ahead will be long; the climb will be steep.  But America I have never been more hopeful that we will get there.”  Adopt the right attitude in testing times, and you will prevail.

Next month I will elaborate on our current economic challenges and how they could very well mean good things for Northern California housing in 2009.  Until then, have a wonderful Thanksgiving.

October 2008: Setting the Record Straight About Credit Markets

panicbutton2Does the current economy have you reaching for the panic button?  If so, I hope to calm your nerves and set the record straight about credit markets.  If you have two eyes and a pulse, you’ve undoubtedly been reading and watching reports about the wacky economic conditions our world is facing.  These stories paint the picture of frozen banks refusing to lend to anyone: small businesses can’t get loans, the state of California can’t get loans, and home buyers can’t get loans.  I don’t know about businesses and governments, but I am here to tell you that home buyers are not only getting loans in the current “credit crisis”, but they are getting competitive rates as well.  Let me repeat myself: mortgage loans are still competitive & available for qualifying borrowers.

The only way I know how to prove this is to give you the examples of clients I am working with RIGHT NOW:

1.) 1st-time home buyer Mr. B has a 714 credit score and can document his income.  He has a 5% down payment that he is taking out of his retirement accounts penalty-free.  His rate is currently locked and approved for a 30-year fixed loan at 6.5% without paying any additional mortgage insurance.
2.) 1st-time home buyer Ms. S is a Veteran who qualifies for 100% financing from the federal government.  The seller is paying her closing costs too, so she is buying her home with literally no money down and obtaining a 30-year fixed loan at 6.5%.
3.) 1st-time home buyer Mr. C has a marginal credit score of 646.  However, his 10% down payment along with his $40K in the bank are allowing him to qualify for a 30-year fixed loan at 6.5% with monthly mortgage insurance.
4.) Home-buyer Mr. L has a 20% down payment and awesome credit.  He is obtaining a 30-year fixed rate at 6.00%.

I emphatically share these examples to give you the straight scoop.  Some of these clients are not “perfect” borrowers, yet financing is still available to them.  While the media, who is feeding off our fear, is convincing us our global economy has screeched to a halt, their message is not entirely true.  I assure you that the mortgage industry is still “liquid,” meaning money is flowing from banks to borrowers at healthy rates.

This letter hopefully counters the barrage of over-inflated hysteria you’ve been reading about credit markets; specifically the mortgage market.  I don’t doubt the fact our economy is facing serious and unprecedented issues, but I refute the over-generalizations that are being made about credit markets.  This is not an attempt to find a silver lining, but rather a simple matter of fact.  Mortgage financing is still readily available to help home buyers take advantage of the low prices in our housing market.

Rather than reaching for the panic button, I urge you to stay grounded through these uncertain times.  Don’t follow the herd out of fear.  Lastly, take action to help fix our country’s troubles; get to the polls on November 4th and make a difference.

August 2008: Challenges

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“When you contend with challenges that test your strength, you move more surely towards the top”
“Whatever doesn’t kill you only makes you stronger”

These quotes have encircled my life and those around me as of late.  Many of my close friends are going through challenging times: financial, relational, and health. Life is rarely a cake-walk, and I’d bet you have some significant challenges facing you right now too.

Some challenges we go looking for.  We may challenge our physical abilities by taking on a work-out regimen.  Or perhaps our intellect by going back to school.  We may challenge ourselves in our faith and ideals to evaluate our moral compass and to avoid becoming sedentary in our beliefs.  Challenges keep us sharp, make us passionately strive for improvement, and move us “more surely towards the top.”

Challenges can also come looking for us.  Case in point: Spencer, my friend who is battling cancer, is about to face his biggest challenge yet on his road back to a healthy life.  On September 5th, he will go to Stanford Hospital to undergo his final phase of his bone marrow transplant to remove the cancerous cells causing his multiple-myeloma.  The near lethal doses of chemo will come close to killing him, but then his body will come back stronger and cancer-free.  Up until Spencer’s challenge, I considered the “whatever doesn’t kill you” line a trifle way of finding the silver lining of a bad situation.  Spencer’s experience, however, has changed my perception of this quote.

For those of us outside the vortex of the challenge, they are words of encouragement.  For those of us facing the challenge, it is a mantra to help you get through the pain.  For those of us who conquer the challenge, this quote is a life-defining testimonial.

If you feel inclined, I urge you to send your thoughts, prayers, and emails to Spencer prior to and during his stay at Stanford.

Challenges are opportunities to learn, endure, and strengthen.  Just don’t allow them to kill your spirit or positive attitude along the way.

June 2008: Get Out There…In Your World

I’ve been getting some pretty good mileage off of Spencer’s “get out there” message.  Last month I encouraged us all to “get out there” in our communities and make a difference.  I had no idea that the message would hit so close to home for me, and that I would be reminded that my idea of community was too small in scope.  Let me explain.

 

Three weeks ago, my wife decided to join a group from our church to go to Cambodia and do service work for an orphanage in desperate need of some facilities improvements.  This type of humanitarian effort is something she has wanted to do for some time, and also embodies how big Mary’s heart is.  She left on Father’s Day and will be there for two weeks.

 

Talk about getting out there!  She is reaching out to her community, which in her eyes is the whole world.  When I consider the word “community” I think Folsom, but Mary is a much worldlier person.  We recently had a discussion about creating a family mission statement, and one of the first things she wanted was the goal of raising “responsible citizens of the world.”

 

“Getting out there” in our communities has a much bigger meaning to me now.  We all should strive to be responsible citizens of the world.  That may mean physically getting out there like Mary, or making concerted efforts to responsibly consume our world’s limited resources, or simply being aware of world issues rather than ignorantly burying our heads in the sand.  Get out there, and become a responsible citizen of our world.