Archive for 'Tips'
The beauty of the FHA program!
Posted on 18. Oct, 2008 by admin.
Many households are able to make enough to consistently make a monthly mortgage payment but saving the down payment is often the hardest part with normal loans often requiring 10-20%.
In today’s market, take advantage of the FHA program which is a Federal Government program to help people buy their primary residence.
Some highlights of the FHA program are:
Low minimum down payment of only 3.5%
Credit score requirements are a minimum of only 620
Co-signer is allowed without having to live on the property
Can be combined w/ Federal First time buyer credit of $8K before Dec. 1, 2009
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What to do in the current financial market
Posted on 26. Sep, 2008 by admin.
Here are some thoughts I had on the current financial market and how to make fortunes when there is blood in the street.
- Keep hunting for opportunities but be cautious on final decision of what type of property to buy.
- Build up cash reserves since cash & financing has gotten tighter.
- If you don’t own a home, plan to get one unless you are planning to move soon. Always good to get the tax breaks and interest rates are very low and will not go much lower before they go higher.
- Lock in a good 30 year rate while guidelines are still good for first time buyers and rates are low, these guidelines may change as the financial market shakes out the proper guidelines for loans.
- Use $8K tax credit for first time home buyers combined with FHA program. $8K covers majority of the 3.5% required.
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Rent Vs. Buy
Posted on 31. Jul, 2008 by admin.
The decision to rent or buy has been debated since the beginning of private land ownership. Here is a simple analysis clearly showing the advantages of home ownership and investing in real estate.
Two times not to buy real estate are when you are planning to relocate within 1 year without plans for returning or if you are not financially stable yet.
When you think of real estate you first have to realize that you will always need a place to live so taking that into consideration do you want to rent the place you live or own.? Have you ever considered renting a car long term instead of buying a car? Of course not, because it does not make financial sense. People rarely rent a car but are content to rent a home despite the tremendous opportunity available to make your home the cornerstone of your financial planning.
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Monopoly and its Application to Real Life Financial Decisions
Posted on 31. Jul, 2008 by admin.
Transcript of Monopoly Analogy speech by Adam Lee for private investment group, December 3, 2007, Honolulu, Hawaii.
Monopoly has been enjoyed by households around the world for many generations. The reason for its continued popularity and success is its reflection of the day to day financial choices and challenges we face and how to successfully go through the game of life, survive and be successful.
We can learn a lot from Monopoly and apply it to produce positive financial results.
Let’s start by thinking who usually wins. It is usually the crazy person buying every property they land on but half of the time that person also gets overextended and either wins or dies. What about the passive player? The passive player rarely wins and usually is eliminated quickly. Somewhere in between is the right way to play the game in real life. You want to stay in a strong position, invest wisely and not get overextended.
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