Investor Business – 1031

Hope you are doing well today!
Occasionally it is great to send out an article related to real estate that explains one of the tax benefits.  In this case it is the investor, who really can be anyone who has a rental property, or is thinking of buying one. 
The 1031 exchange has been used for years to avoid paying taxes on the sale of real estate.  The the article below while brief, does offer a nice summary of this rule.

To your success! 

Why Buy Real Estate?

Happy Saturday!

YES, Why Buy Real Estate?

When you talk with a client and attempt to encourage them to buy real estate, whether it is their first home or a second home or an investment property what can you say that is convincing? When talking to a clerk, your auto mechanic, hairstylist, acquaintance or friend, what can you say or do that will captivate their attention or create a “NEED” to inquire further to get information that will absolutely “convince” them that they need to buy, “regardless of the market”?

There are only two aspects of this that really matter:

Shelter, or Financial.

[Read more…]

Real Estate Law Update re: Co-Tenant Lawsuit Judgements

September 30, 2014 – REAL ESTATE LAW UPDATE

Judgment Against One Co-Tenant Bars Separate Lawsuit Against the Other Co-Tenants.

In the case of DKN Holdings LLC v. Faerber 225 Cal.App.4th 1115, a commercial landlord who owned a shopping center was sued by one of the co-tenants claiming that the landlord misrepresented certain issues regarding the shopping center and/or withheld material information concerning the leasehold premises. The landlord then cross-complained against the tenant who sued him as well as the other two co-tenants. However, before trial, the landlord dismissed the other two co-tenants from the lawsuit. At trial the landlord was awarded 2.8 million against the one co-tenant for breaching the lease.

[Read more…]

Mortgage Market Weekly Update – Jun 21, 2013

In This Issue

Last Week in Review: The Fed met and the volatility continued. Find out how home loan rates were impacted.

Forecast for the Week: The last week of June will be busy, with news on housing, inflation, consumer confidence and more.

View: Been wondering what those #Hashtags are really about, and if they really do make a difference? Learn more below.

Last Week in Review

“I’m free…free fallin’.” Tom Petty. Mortgage Bonds continued to fall last week as the Fed met and more volatility followed. Read on to learn what happened.

existing-home-sales-may2012-2013After last week’s meeting of the Federal Open Market Committee (FOMC), the Fed released its Policy Statement, noting that the downside risks to the outlook for the economy and labor market have diminished. Especially important: There was no mention of tapering their Bond Purchase program known as Quantitative Easing.

However, in the press conference that followed, Fed Chairman Ben Bernanke said, “Assuming the economy and labor conditions evolve as the Committee expects, the Fed anticipated it would begin tapering later this year and to finish by mid-2014.” This mixed message caused a sell-off in both Stocks and Bonds, adding to the volatility the markets have seen of late.

In economic reports of note, there was more good news in the housing sector as Existing Home Sales rose by 5.18 million units annualized in May. This is an increase of 12.9 percent from May 2012 and the highest rate since 5.44 million units were sold in November 2009. Housing Starts also rose by 7 percent in May, and though they came in lower than expected, they are actually up a whopping 28 percent since May 2012. [Read more…]

Mortgage Market Weekly Update – April 29, 2013

In This Issue

Last Week in Review: Weak economic news continues here at home and abroad, but is that good or bad news for home loan rates?

Forecast for the Week: Look for important reports on inflation, housing, manufacturing, and the labor market.

View: Want to know the key to being remarkable? Be sure to read the tips below.

Last Week in Review

You’re riding high in April and shot down in May.” The lyrics from the old Sinatra tune “That’s Life” haven’t applied to the economy this year, as it has limped along in April. Read on for the latest news, and how home loan rates were impacted.

apr29-existing-home-salesIn housing news, New Home Sales for March met expectations, coming in at 417,000. However, Existing Home Sales were down 0.6 percent and below expectations and February’s numbers were revised lower to 4.95 million units from 4.98 million units. There has not been much of an improvement in the Existing Home Sales numbers of late, but on the bright side they are higher than the 4.48 million mark from March 2012.

Gross Domestic Product (the broadest measure of economic activity in the U.S.) rose by 2.5 percent in the first quarter of 2013. However, this number was below the 2.8 percent to 3.2 percent that was expected. While the report showed that consumer spending rose at its fastest pace in two years and that businesses ramped up their inventories, overall this is not a great number. However, it is just the first of three readings and revisions will most likely be forthcoming. Also of note, March orders for Durable Goods (which are products that last for an extended period of time) also came in below expectations.

What does this mean for home loan rates? Bonds have benefited from the string of weak economic reports here at home, as investors typically move their money into safer investments like Bonds during weak economic times. This includes, Mortgage Bonds, to which home loan rates are tied. Bonds and home loan rates have also benefited from weak economic news overseas, as investors there continue to see our Bonds as a safe haven for their money. In addition, if inflation remains in check and economic data remains weak, this gives the Fed cover to continue its Bond purchase program known as Quantitative Easing–which should also benefit Bonds and home loan rates as a result.

The bottom line is that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

The economic calendar will be busy all week. Plus the Fed meets.

  • The week begins on Monday with Personal Consumption and Expenditures, the Fed’s favorite measure of inflation, as well as Personal Income and Personal Spending.
  • In housing news, Pending Home Sales will also be released Monday, followed by Tuesday’s Case-Shiller Home Price Index.
  • We’ll get a sense of how the consumer is feeling with Tuesday’s Consumer Confidence reading for April.
    Several key manufacturing reports will be released, beginning on Tuesday with the Chicago PMI followed by Wednesday’s ISM Index.
  • Weekly Initial Jobless Claims will be reported on Thursday. Last week, jobless claims fell to 339,000 after averaging 362,000 in the previous four weeks.
  • On Friday, we end the week with the often market-moving Jobs Report for April, which includes Non-Farm Payrolls and the Unemployment Rate. ISM Services Index will also be reported.

In addition, the Fed’s regularly scheduled two-day meeting of the Federal Open Market Committee begins on Tuesday, with their Policy Statement scheduled for 2:15 p.m. ET on Wednesday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving – and when they are moving lower, home loan rates are getting worse.

To go one step further – a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds and home loan rates continue to remain near historic best levels. I’ll be watching their movement closely.


The Mortgage Market Guide View…

6 Keys to Being Remarkable

“The key to success in any field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours.”
Malcolm Gladwell, Outliers, 2011

“Strenuous individual application is the price paid for distinction; excellence of any sort is placed beyond the reach of indolence.”
Samuel Smiles, Self-Help, 1859

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
Aristotle, 345 BC

The myth that people are born talented is rapidly dispelling. The scientific community is at last catching up with what even Aristotle knew; the difference between success and non-success, outstanding skill and mediocrity, is a matter of dedication and time rather than innate ability. But can the way you practice make a difference? Yes, says Tony Schwartz, author of The Way We’re Working Isn’t Working, who offers six principles for becoming really good at anything:

  1. Pursue your passion. Passion will keep you motivated better than anything. If you can’t be passionate, find something else or you may burn out.
  2. Hard work first. Most experts–and experts who study experts–say that practicing first thing in the morning when you have the most energy is best.
  3. Practice intensely, but not too long. Working without interruption for short periods of no longer than 90 minutes with short breaks–and not longer than 4.5 hours each day–seems to be the norm for top performers.
  4. Get feedback in small doses. Too much advice too frequently can impede learning and make you gun shy.
  5. Refresh regularly. All work and no play… stinks. And it won’t help you in the long run. Plus, if it’s breakthroughs you want, rest is the best thing for activating your creative, right-hemisphere.
  6. Ritualize practice. Time-blocking your practice ensures you don’t have to expend any energy thinking about when you’ll work.

Please feel free to pass these tips along to any clients and colleagues who may benefit!


The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please email me at don @

If you prefer to send your removal request by mail the address is:

Don Parsons
20250 Acacia Street, Suite 120
Newport Beach, CA 92660