Building Wealth Magazine

Deductions in the Loan Process

Write-offs are the government’s way of rewarding taxpayers when they’ve done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget.

Make sure your clients take advantage of every break the IRS will give. Here are a few they tend to forget:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a “service fee” are not tax deductible. The question must be asked, “Does the fee apply to the use of money, or is it a service charge?”

Discount points are paid to secure a lower interest rate. IRS Publication 936 lists Read the rest of this entry »

Turn Prospects into Clients with an Effective Presentation! 

Dynamic business meetings, those that accomplish a set goal, rely on mutual respect. Yes, it sounds cliché, but respect really is a “two-way street.” In order to obtain that respect from clients or potential clients, it’s crucial to understand the dynamics of business relationships. Everyone wants to feel important, that his or her time is valuable, and the person who set up the meeting has taken this into consideration.

For that reason, punctuality matters. Never keep a prospect waiting. And brevity also counts. Move your presentation from point to point in a clear and concise manner, but without appearing rushed. Don’t elaborate or belabor a point unless asked for further explanation. And never make your prospects yawn! Read the rest of this entry »

Making Each Day Your Best
In The Art of Happiness*, the Dalai Lama shares this powerful insight into life:

“I believe that the very purpose of our life is to seek happiness. That is clear. [Regardless of religion], we are all seeking something better in life. So I think the very motion of our life is toward happiness.”

But how are we to achieve this happiness that we all seek? What common factor can we rely upon, regardless of our health, wealth, appearance, family, etc? The Dalai Lama goes on to discuss how the mind can be trained for happiness, despite a lack of material wealth and success. It’s that whole idea of “wanting what you have versus having what you want.”

Stephen Covey refers to this as “responsibility,” or the ability to choose your response. Tony Robbins calls it “reframing your perspective”. James Allen simply calls it Read the rest of this entry »

Quieting Your Critic

Robert Kiyosaki’s bestseller, Rich Dad, Poor Dad,* has helped millions to create road maps to their financial goals. Central to his series is the notion of open-mindedness. Instead of sizing up a situation and saying, “I can’t afford that,” he suggests saying, “How can I afford that?” By reshaping the idea into an open-ended question, creativity is stimulated, which leads to inspiration.

Here’s a list of critical thoughts and their positive replacements. I hope these help to prime your mind for money-making thought. Read the rest of this entry »

The second week in February is week is Random Act of Kindness Week…obviously my favorite week!

Possibly the best export from Canada since hockey, the Random Acts of Kindness Foundation was founded in 1995. They don’t accept donations, do fund raising or accept membership dues. They are dedicated to spreading kindness through various projects in communities across the globe. Here are a 101 simple ideas of how to celebrate this week:

1 Deliver fresh-baked cookies to city workers.
2 Collect goods for a food bank.
3 Bring flowers to work and share them with coworkers.
4 Garden clubs can make floral arrangements for senior centers, nursing homes, hospitals, police stations, or shut-ins.
5 Adopt a student who needs a friend, checking in periodically to see how things are going.
6 Volunteer to be a tutor in a school.
7 Extend a hand to someone in need. Give your full attention and simply listen.
8 Merchants can donate a percentage of receipts for the week to a special cause.
9 Bring coworkers a special treat.
10 Students can clean classrooms for the custodian.
11 Buy a stranger a free pizza.
12 Distribute lollipops to kids.
13 Sing at a nursing home. Read the rest of this entry »

Dale Carnegie’s classic book, How to Win Friends & Influence People*, was first published in 1936 and has sold more than 15 million copies worldwide. Carnegie’s book is a primer for how to be truly likable, genuinely kind, and lovingly followed. Somewhat sadly, kindness and sincerity don’t make for good drama, and most of the entertainment out there shows people at their most base, most selfish, and most cunning. It’s easy to forget how a real leader should behave in light of the bad examples that have been set in recent years.

With that in mind, I’d like to expound on some of the tips from Carnegie’s section on How to Win People to Your Way of Thinking. I highly recommend Read the rest of this entry »

Buy with Nothing Down, you’ve seen the infomercials for years and you may even have a Piggy Back loan, but are 80/20 loans right for you? 1 in 5 borrowers went nothing down last year way up from 1 in 20 in 2000*. This coupled with increasing credit card balances, rising adjustable rate mortgages, slower increase in incomes compared to housing rush could spell disaster for many Americans as the market softens up. What we’re seeing is an increased number of borrowers willing to risk buying above their income levels with Stated Income and Interest Only Loans, financing larger debt and then Hoping nothing goes wrong. I’m going to wager the Bay Area foreclosure rate will double yet again in 2007.
What to do?
If you have credit card or other unsecured debt pay that off first. Eliminating this debt from the equation will give you options should one of life’s major events find you under prepared. See our debt elimination section for the best ways to become debt free. Remember it is never a good idea to use your home equity to pay off credit cards.
If you don’t owe on any unsecured debt then paying down your second mortgage should be a top priority. Building a cushion to cover Realtor® fees, taxes and other sales cost should you need to sell your home will keep you from finding yourself under water. Second Mortgage rates are Read the rest of this entry »