Archive | December, 2007

UPDATE: New Tool in the Person-to-Person Loan Market

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Springwise points us to a new online marketplace with the descriptive name Home Equity Share matches home buyers with investors. To be exact: it brings together buyers who can afford monthly payments but not a 20% down payment, and investors who want to get into real estate but don’t want to become landlords or make monthly payments.

Potential home buyers post a profile listing their preferences, including the area they want to buy in, and the price range they’re looking for. They’re automatically matched with compatible investors, come to an agreement and sign a preliminary commitment. This allows the buyer to become pre-approved for a loan, and to start looking for a property. Once buyer and investor agree on a property, the investor provides the down payment, the buyer arranges a mortgage for his home and moves in. At the end of a specified agreement term—usually three to seven years—the buyer can purchase the investor’s interest in the property, or they can sell the house and share its appreciation in value.

Home Equity Share provides the matching service and contracts at no cost to buyers and investors, but requires that they use a real estate agent who is registered with the company. Agents pay a referral fee of 20% of the commission earned on transactions referred by Home Equity Share.

Unlike P2P lending services we’ve written about in the past, such as Zopa and Prosper, Home Equity Share is targeting a very specific niche: real estate down payments. It matches the parties and provides them with contracts, but doesn’t facilitate the exchange of money. Other niche P2P lending matchmakers to follow?

Cashing in on Your Property's Payroll: Reverse Mortgages

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It may sound hard to believe, but one part of the mortgage market is hot: reverse mortgages. That’s giving older homeowners more options to tap the equity in their homes but also opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain-vanilla government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or another lender in exchange for a lump sum, monthly payments or a line of credit.

Now, nearly a dozen large banks and mortgage lenders have launched reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. “Jumbo” reverse mortgages, for houses valued at as much as $10 million, are becoming more common.

 

With a reverse mortgage, instead of the borrower making payments to the lender, the lender makes a payment or payments to the borrower. The borrower keeps control of the house and doesn’t have to repay the money as long as he or she lives there. When the homeowner dies or moves out, the loan is typically paid off by selling the house, and any money left over goes to the homeowner or the homeowner’s estate.

A better life in retirement

The product is evolving from meeting basic needs to fulfilling the desires of a new generation of retirees, from funding a vacation getaway or recreational vehicle to renting a Paris pied-à-terre. The new options, though, mean more potential for confusion among consumers and a bigger chance that they could miss out on getting the best loans for their situations. MSN’s Full Story

Hot Hot Holidays: 19 Safety Tips to Prevent Holiday Home Fires

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In this – the season of tinseled trees, lavish lights, overloaded outlets, and candy scented candles – the American Red Cross offers us the gift of holiday home fire prevention tips to keep us all safe in this most festive time of year…

 

Christmas Tree Care

  • Purchase flame retardant metallic or artificial trees.
  • If you purchase a real tree, make sure that it has fresh, green needles that aren’t easily broken.
  • Keep live trees as moist as possible by giving them plenty of water.
  • Use a sturdy tree stand designed not to tip over.
  • Keep trees at least three feet away from heat sources, including fireplaces, portable heaters, radiators, heat vents and candles.
  • Make sure that any light strings or other decorations for the tree are in good condition and follow manufacturer’s instructions for their use. Do not use anything with frayed electrical cords.
  • Be careful not to drop or flick cigarette ashes near a tree.
  • Never put tree branches or needles in a fireplace or wood burning stove.
  • Safely dispose of trees as they become dry and needles begin to drop.
  • Dispose of trees through recycling centers or community pick-up services. Dried-out trees should not be left in a house or garage, or placed against the house or garage.

Holiday Lights and Decorations

  • Always unplug tree and holiday lights before leaving home or going to bed.
  • Inspect holiday lights each year for frayed wires, bare spots, broken or cracked sockets, and excessive kinking or wear.
  • Avoid overloading electrical outlets by not linking more than three light strands.
  • Use decorations that are flame-resistant or flame-retardant
  • Place decorations at least three feet away from fireplaces, portable heaters, radiators, heat vents and candles.

Holiday Candles

  • Always extinguish them before leaving the room or going to bed. Do not leave a room before extinguishing candles.
  • Never use lit candles to decorate a tree.
  • Keep them at least three feet away from trees, evergreens, holiday decorations, and other items that can catch fire like clothing, papers and curtains.
  • Use candle holders that are study, won’t tip over easily, are made from a material that cannot burn, and are large enough to collect dripping wax. Remember that even glass holders can shatter and explode from the heat of a candle flame.
  • Place them where they cannot be reached or easily knocked over by children and pets.

Painting Parties + Cocktail Concoctions = Renovation Redos

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As home equity lines draw thin and confidence in the housing market takes a dive, weary consumers are turning to an inexpensive option for home improvements — their friends (Wall Street Journal 10.1.07). And whether they’re crazy for DIY or lured over with the promise of booze, friends are finding themselves at remodeling parties and pitching in on projects like painting, drywalling and laying floors. One homeowner estimates she saved $3,500 in contractor fees by enlisting 10 neighbors for a “stripping” party.But what’s more dangerous than an amateur hammer-wielding friend? When they’re holding a cocktail in the other hand. And the producers of HGTV’s renovation-redo show Over Your Head say they’ve received numerous submissions from botched renovation parties.

So what does this mean for business?

  1. Consumers are feeling empowered by successful DIY projects portrayed in the media, from TV shows to magazines to blogs. Many are thinking, “If that person can do it; so can I!”
  2. Tight budgets and slow house sales might move some consumers back to the days of barn-raising. But it’s not just the experienced renovator who’s getting in on the, er, fun; many of these homeowners and their happy-to-help friends are amateurs who could use a little guidance in the form of classes, promotional material or online tutorials.
  3. Contractors may also benefit from these parties; someone needs to fix the mistakes made by incompetent — or intoxicated — friends.

Note: Original story content expressed here was from an article published by Iconoculture

Living Walls: Vertical Gardens Venture Indoors

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Any florist or gardening company can place potted plants in an office, then dutifully drop by to water them when needed. But according to Springwise, it takes skilled artisans to create the indoor walls of greenery that are indoorlandscaping’s speciality. The German firm’s Grüne Wand (green wall) adds a welcome green element to sterile office environments and improves air quality while taking up less floor space than potted vegetation does.

Indoorlandscaping isn’t the only company creating green walls for public spaces. Green Fortune, launched by two Swedish entrepreneurs, has already amassed an impressive list of international clients, placing their Plantwalls in offices, stores, restaurants and even car dealerships. Likewise, French artist Patrick Blank’s meticulously sculpted Vertical Gardens have transformed ordinary walls in Paris and elsewhere into works of foliage art.

From LEED certification to green roofs, commercial buildings are being swept up in a big eco-wave. Which isn’t just good and necessary, but also creates a host of new business opportunities for entrepreneurs—whether creating their own eco-friendly concepts, or partnering with up-and-coming players like Green Fortune and indoorlandscaping. And how about making green indoor walls feasible and affordable for private homes?

Homeowner Gift Guide: 15 Tools Every Homeowner Should Own

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The secret to a great tool kit? Selection. Of the thousands of tools available at your local hardware store, it only takes about a dozen to tackle most home repair jobs, and only one of them plugs in.

So, in this gift-giving season, here are the tools MSN.com’s experts suggest as absolute musts for a lifetime of home improvements and repair. The first 15 items make up the absolute basics for a serviceable tool kit to last a lifetime – all for just under $200. That said, a handyman’s life can be made much easier with a few additions. Buy or give the last half-dozen items as needed.

(All prices reflect the least expensive, good-quality products available at Lowe's home improvement stores in fall 2006.)

THE ESSENTIALS

1. Toolbox: $30
Let’s start with something to fill, shall we? A good, usable toolbox can save as much time on a job as having the right tools inside. A lot of people don’t get one and their stuff is all over the place and it takes them a half-hour of frustration to get what they need for even the simplest job. One idea? A soft canvas bag with lots of pockets that drapes over a five-gallon bucket. Rubber-bottom soft bags are a slightly heavier alternative.

2. Hammer: $15
A steel-shaft version with a vibration-dampening rubber grip or a 16-ounce steel- or fiberglass-shaft hammer with a smooth (not checkered) head to avoid unnecessary marring work great. Choose a model with a straight or “rip” claw, not a curved claw; they’re much more useful for demolition.

TIP: Sandpaper the face of the hammer once in a while so nails don’t slip off.

3. Pry bar: $15
A 12- to 15-inch pry bar is incredibly handy. There is one made of hexagonal steel that is infinitely superior to ones that are made of spring steel, which tend to bounce when you hammer them.

4. Vise-grips: $10
Also known as locking pliers, vise-grips are the pit bull in your toolbox: Simply adjust the screw drive in the handle and clamp it on to anything that needs viselike stabilizing, typically metal or PVC pipes. When you’re done, the lever in the opposite handle releases the jaws. Channel-lock pliers are a good second choice.

5. Needle-nose pliers: $8
The long tapering forged head that gives needle-nose pliers their name is particularly useful in electrical work where spaces can get tight. Get a pair with a wire-cutting blade near the hinge.

6. Screwdrivers (mixed set): $20
You’ll save money and get the most use out of a good quality mixed set that includes 1/4- and 3/8-inch flat heads and No. 1 and No. 2 Phillips head drivers. Magnetic heads come in handy, too.

ADVICE: Steer clear of cordless electric screwdrivers; instead, use screwdriver bits with a corded electric drill, which provides more torque and never needs recharging.

7. Wire cutter/stripper: $10
This handy plierlike tool scores and strips the casing off varying gauges of wires to speed electrical jobs.

8. Tape measure (16-foot): $4
You’ll thank yourself for getting a good-quality, easy-locking, 3/4-inch-wide model. The half-inchers just don’t stay in place when extended; the one-inchers are overkill.

9. Electrical tester: $2
Forget the fancy gadgets with dials and displays: You only need the cheapie with two probes and a light to indicate that an electrical current is present.

TIP: Remember to test it in a working outlet each time before you use it to make sure it’s still working. Remember: If it’s dead, you’re dead.

10. Reversible drill with bit set: $40
This 3/8th-inch reversible drill is the only electrical tool that you absolutely, positively have to have. Although stores are filled with cordless varieties, stick with a corded model: They’re lighter, cheaper and never run out of juice.

11. 1/2-inch steel chisel: $10
One of the most ancient tools is also essential as well. When you need a chisel (and you will), there’s really no acceptable substitute. And forget the plastic- and wooden-handled varieties.

12. Utility knife: $4
Having a utility knife with replaceable blades comes in awfully handy, and again, when you need one there’s really no substitute.

13. Handsaw: $15
If you invest in a circular saw, you may find few situations in which you’ll need a handsaw. But many power-averse folks will feel more comfortable with a short handsaw. A good choice is the 12-inch FatMax by Stanley; it’s lighter and cuts straighter and faster than traditional handsaws.

14. 9-inch torpedo level: $9
These palm-size levels with the bubble that floats to center are essential to leveling everything from picture frames to kitchen cabinets. If you need to level something long, simply add a board to the level. And don’t be tempted by the various laser levels on the market.

15. Safety glasses: $6
There simply is no substitute for effective eye protection.

 

6 NICE-TO-HAVES

1. 7-1/4-inch circular saw: $80
Once your projects grow beyond a certain scale to include things like decks and fences, you won’t hesitate to invest in a circular saw, which speeds up any project involving numerous cuts. This is also one of the most dangerous tools to own. Take extra care to keep kids and pets well away from your work site when operating a circular saw, never cut on an uneven or unstable surface, use protective eyewear and ALWAYS unplug the saw when not in use.

2. Electronic stud finder: $10
Looking for the studs behind your walls to support shelves or other fixtures? This electronic device will locate them for you quickly and accurately.

3. Carpenter’s square: $6
Despite its name, a carpenter’s square isn’t square at all, but rather triangular in sort of a gun shape. It enables you to cut squarely when you use it to measure and mark a straight line at a right (90-degree) angle from any straight edge.

4. Random orbital sander: $55
At some point, you’ll likely need to remove a finish or sand smooth a large surface (table, cabinet, etc.). This is just the tool. Its random motion sands evenly from rough to smooth with optimal control.

5. Staple gun: $17
A staple gun comes in handy for a variety of home projects that require fast tacking, such as upholstering.

6. Clamps: $2-$40
Clamps are as useful as they are problematic. They all have different uses: Some of them are fast, some of them are strong, some of them are heavy, some of them are too long except when you need that length. But clamps are really handy because you can clamp something down while you work on it or glue it or fasten it. They’re also good for personal safety when you’re trying to cut something that’s wandering all over the place.

Giving Green Idea: Eco Starter Kits for Christmas

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Most of us realize there are changes we should make in our lives and in our homes to become more environmentally friendly, but overcoming inertia and actually doing it can be another matter. Now, the folks at Springwise point us to a few different companies offer starter kits to help make those changes happen.

Greensender, which just launched in October, sells green gift boxes designed to help people start embracing simple green practices. Each Greensender box contains a reusable aluminium water bottle, a reusable organic cotton grocery bag, an energy-efficient compact fluorescent light (CFL) bulb and an organic cotton T-shirt—all selected for their easy integration into people’s everyday lives, Greensender says. Prices are $49.99 for the Big Greensender Box or $39.99 for a version without the T-shirt; individual items are available separately as well. Logo-emblazoned versions can also be purchased for corporate or event purposes, and New Jersey-based Greensender donates at least one percent of its sales to 1% For The Planet.

GoGreenGift, meanwhile, packs a reusable bag with a CFL bulb; a low-flow shower head; organic fruit leather, coffee and tea; assorted herbal body care products; and its GoGreen EcoGuide. The kits are available in original and deluxe versions for $45 and $63, respectively.

Virginia-based Green-kits, which launched earlier this year, offers a variety of eco kits including basic and deluxe starter kits along with packages focused on cleaning, the kitchen, and baby care. Prices begin at $10.

A full 87 percent of Americans are “seriously concerned” about the environment, according to the 2007 GfK Roper Green Gauge study, yet only 30 percent of the population is actively ‘green’. The remainder, and the rest of the over-developed world? Nothing short of a ripe opportunity!

Update: Forclosure Filings

Listings of foreclosures on newforeclosureonline.com reveal all-time highs for country foreclosures. According to the site, numbers show that filings have nearly doubled since last year, but have leveled off in the last two months.More homeowners were reported to have lost their homes in October of this year as compared to a year ago. Nevada, California, Florida and Ohio recorded the highest foreclosure rates, experts said from New Foreclosure. New Foreclosure Online is a specialized foreclosure listing company that also provides solutions to anyone that is threatened to lose their home.

As of the end of October, 224,451 foreclosure filings were reported, up 94% from 115,568 in the same month a year ago, according to Irvine-based RealtyTrac Inc. The national average is said to be set at one foreclosure for every 555 households in October, also according to RealtyTrac, Inc. In all, 45 states saw an increase in foreclosure filings since last year.

Among the top of the list of states with increased foreclosures were Nevada, California and Florida. Nevada reported one foreclosure filing for every 154 households, earning the state the highest rate in the nation for the 10th month in a row. The state had 6,618 filings in October, nearly triple from October 2006. California’s rate beat out Nevada with one filing for every 258 households. The state reported the most foreclosure filings of any single state with 50,401, down 2 percent from September but more than triple the number from October of last year.

Florida had one foreclosure filing for every 273 households and had reported 30,190 foreclosure filings in October, down more than 9% from September, but up nearly 165% from October 2006’s total. Rounding out the states with the top 10 foreclosure filing rates in October were Georgia, Michigan, Colorado, Arizona, Indiana and Illinois. New Foreclosure Online has responded in many ways to help homeowners find better solutions.

Negotiation 101: A Homebuyer's How To

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Preparation, mental toughness and negotiating strategy play key roles in the home purchase process, and as a home buyer you need to master them.

The L.A. Times offers us some tips to help:

Knowledge is power.
Before making a purchase offer, learn as much as you can about your local housing market and the homeowner’s motivations for selling.

Ask questions about the sellers, such as why they’re selling, how long the home has been listed for sale, how soon the seller needs to sell, the mortgage balance, how much the seller paid and any defects in the home.

As the buyer, you’re in the driver’s seat, so obtain all the knowledge you can.

But at the same time, be careful to reveal as little as possible about your personal situation, such as your income, maximum down payment, highest price you’ll pay for a home and how soon you want to move.

And caution your agent not to reveal any confidential information to the seller or listing agent.

Ask if the seller has a deadline.
Time is critical in negotiations. Find out if the other party has a specific deadline. If the seller is under time pressure, use it to your advantage.

Usually buyer or seller or both have deadlines. If the local home sale market is hot, the competition of other buyers might push you to act quickly once you decide on a specific home. But don’t be rushed into a purchase.

Keep a poker face.
No matter how much you want a specific home, avoid showing your emotions. Pretend you can take it or leave it. Once the seller (and the seller’s agent) discover you absolutely must buy a home, you lose your negotiation edge.

Adopt the “he who cares least wins” attitude.
Closely related to hiding your emotions is adopting the “he who cares least wins” negotiation strategy.

Ask yourself, as a buyer, “What will happen if I don’t buy this home?” The world probably won’t end. Maybe you’ll find a home you like better at a lower price. But don’t be afraid to walk away. There’s always another home for sale.

Watch out for real estate “auctions.”
If you are buying a home, watch out if the realty agent says, “If you want to buy this house, you’d better make your purchase offer quickly because there’s another buyer interested in this house.”

Assuming there really is another interested buyer, this is a setup for a real estate “auction.” Often, there is no second buyer. If there is, don’t let him influence you when making a purchase offer.

Make your offer based on your superior knowledge of the local home prices and the seller’s motivations for selling. If the other buyer gets the house, he probably overpaid for it.

Adopt a “win-win” attitude.
Buyers should avoid taking unfair advantage of the seller, even if the seller is facing a difficult situation, such as a pending foreclosure, divorce, unemployment or job transfer.

With a win-win attitude, the buyer offers a fair price that the seller can realistically accept. When you meet the other party and his or her realty agent, be sure to congratulate them on their successful negotiations.

Marketing to the 'Lock-and-Leave' Lifestyle

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What’s new in Puerto Vallarta condos? Want to see the latest San Diego high rise?

No longer do you have to wait for a national road show to get a feel for new developments around the world. Cliff Bowman, the Vancouver, B.C.-based marketing expert who has turned pre-selling condominium buildings into an industry art form, has taken his online condo idea to retail stores. His Urban and Resort Condo Centers offer consumers a menu of popular destinations and in-city projects while providing developers and builders a downtown sales presence for a fraction of the cost of finding and leasing their own building. Full Story