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        <title>Equity Build</title>
        <description><![CDATA[The Socially Responsible, Fully Leveraged, No-Money-Down, Turnkey Path to Real Wealth]]></description>
        <link>http://www.equitybuild.com/blog</link>
        <lastBuildDate>Mon, 06 Sep 2010 21:00:23 -0500</lastBuildDate>
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            <url>http://www.equitybuild.com/images/tab4-start-building-equity-now.gif</url>
            <title>Equity Build</title>
            <link>http://www.equitybuild.com/blog</link>
            <description><![CDATA[Start Building Equity Now!]]></description>
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        <item>
            <title>It's buying time again!</title>
            <link>http://www.equitybuild.com/blog?post=77</link>
            <description><![CDATA[A buyer's market continues but won't last forever!
The Pending Home Sales Index (PHSI) rose 5.2% to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1% below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.  The PHSI in the Northeast rose 6.3% to 62.5 in July but is 21.1% below a year ago. In the Midwest the index increased 4.1% to 66.7 but remains 25.7% below July 2009. Pending home sales in the South rose 1.2% to an index of 86.3, but are 15.6% lower than a year ago. In the West the index jumped 11.6% to 95.0 but is 17.6% below July 2009.  The national index had fallen 29.9% in May and another 2.8% in June.

Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”  Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed&rsquo;s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”

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            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Take your investment analysis to another level</title>
            <link>http://www.equitybuild.com/blog?post=76</link>
            <description><![CDATA[Today's topic isn't for the novice real estate newbie investors  but rather veterans  searching for robust tools to help make informed decisions about future trends. Yesterday we discussed the use of frequency intervals and demographic trends to help build a predictive model with direct day-to-day application for your investing decisions. Now we will turn our attention to the use of CHAID and SIMM data to help understand how economists, researchers and marketing experts are able to generate broad trends well into the future. Once you understand the basics, it's easy to use the same techniques in your own local market.

SIMM or simultaneous media usage studies, are performed twice each year. Each segment contains roughly 15 to 17 thousand participants with a total of 14 groups representing major age range distributions patterns. With over 200,000 participants, the study is large enough to generate valuable data which can then be generalized to the larger population. The US government also conducts similar types of survey's and data gathering activities although typically with less emphasize on media penetration. Not only does this level of consumer tracking across all media sources (online, magazines, television, newspapers, radio etc) assure a comprehensive tracking mechanism, it also forms the foundation for predictive modeling and consumer purchasing behavior.

Consumer participants are asked questions such as "whether or not they intend to buy a house in the next year then combined with household income, age and other basic demographic information, it is used to generate a CHIAD or Chi Square Automatic Interaction Detector. Despite the somewhat fancy sounding name, a CHIAD is little more than a decision tree. For example, for those participants which indicate they intend to purchase a home within the next year they may then be asked whether it will be a primary purchase or a second home. The time frame of that purchase (1-3 months, 4-6 months etc...).

The size of the home and so forth.  So, how can this be used in your local market? Depending upon the size of your social media reach and client list, it's easier than ever to create an informal survey to gauge the level of interest and intent in any given zip code or metropolitan statistical area. It's also possible to gather large scale data created by the government (both state and local) in order to combine it with that of the Census, Department of Labor and other federal generated trends.

Remember, information is power. ]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
        </item>
        <item>
            <title>Are your investment decisions the result of proper analysis?</title>
            <link>http://www.equitybuild.com/blog?post=75</link>
            <description><![CDATA[Statistics. Love them or hate them but most business decisions involve the use of statistical data including the purchase and sale of investment real estate. For example, one common measure of a good investment property is "affordability". But what exactly constitutes affordable?

It's an important consideration and one that most real estate investors do not fully understand. The "reader's digest" answer is that an affordable home is at or below the "average" household income for that location; ie, it can be purchased or rented by most households and is therefore an attractive investment. However, this really only relates a small amount of the total information required. Average or mean incomes are notoriously inaccurate due to skewing of results at the high or low ends. Likewise, "average" priced homes are equally biased due to very high priced or very low priced home.

One way to avoid the problem is to use frequency intervals in combination with demographic trends and housing price. Frequency intervals are ways of measuring a large group of items to determine which is the most commonly occurring. For example, let's assume a real estate investor is interested in purchasing a few properties in a given city and this investor is very prudent and does some research to find out the average household income and the average sales price of a home. So far - so good. Just for the sake of simplicity we will assume the household income is close to the national average at $50,000. The average sales price of homes in the area is $150,000 or roughly 3x the annual household income. Our savvy investor sets out to find a few homes in that price range...what could go wrong? Well, the short answer is... a lot!

Unfortunately, the rising rates of unemployment combined with a few very high incomes skew the results...basically there are a lot of low-end household incomes in the $25,000 range and a small but significant number of wealthy households in the million dollar range. The "average" may still be $50,000 per household for that city but it fails to account for the lack of a substantial middle class. Basically, there are very few households able and willing to purchase a home for $150,000. The lower income households cannot qualify and the higher income households may not be interested.

The solution is to use frequency intervals for all pertinent data including household income, age and other significant criteria. By learning how many households are in a given income bracket, how many are of home-buying or renting age, etc... the investor has a much more detailed plan of action. Returning to the prior example, rather than purchase a $150,000 average home, the investor may concentrate efforts on homes priced at or below $75,000 and/or luxury homes instead. This would appeal to the largest number of buyers and renters for that area at either/or the low income level of high household income level. It's a simple solution to address highly volatile markets and disparate data.
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Government loan programs you should be aware of</title>
            <link>http://www.equitybuild.com/blog?post=74</link>
            <description><![CDATA[With the majority of mortgage loans now guaranteed by the U.S. government, it is a good idea to review what is available and to whom. Here is the low down on government loans as of August of 2010.

Basic FHA Loan (Home Mortgage Insurance - HUD/FHA) - This program has grown into a heavy hitter within the industry despite the fact that it doesn't lend money directly to buyers (in most cases) but rather insures or underwrites the loans.

Condominium Unit Purchase (Mortgage Insurance - HUD/FHA) - Similar to the Basic FHA loan above, this is designed with condo owners in mind.

Manufactured Home Loan Insurance (HUD/FHA) - Like the basic FHA and condo loans above, this program is designed for borrowers interested in the purchase of a mobile or manufactured home.
Hope for Homeowners - The media made a lot out of this little program which turned out to be a much smaller than originally anticipated. Designed to help people avoid foreclosure, the program provides new, 30 year fixed interest rate mortgages for those that cannot afford their current payments. Stringent requirements have limited the number of eligible participants.

Rural Housing: Farm Labor Housing Loans and Grants - Once a major program within the federal government, the reduction in family farms has made this an all but forgotten program but one worth looking into for anyone interested in purchasing a family farm. Loans (and a limited number of grants) are available for land, housing, machinery and other assets required to buy, build and operate a farm.

VA - Home Loans - Interest Rate Reduction Refinancing Loan - Once considered the domain of veterans, this guarantee service also provides funding for the family of service members as well as veterans and others. Additionally the VA provides vendee loans for anyone interested in purchasing a VA foreclosure.

Section 203k Rehabilitation Mortgage Insurance - Interested in a major fixer-upper? Section 203k may be the right mortgage for you; once the main mortgage is obtained, this program provides the funding needed to make necessary repairs and upgrades to the property. Section 203h is a closely related program that provides funding for repairs and rebuilding due to natural disasters or other emergencies.

Home and Property Disaster Loans - The Small Business Administration may not be the first agency that comes to mind when you need a mortgage after a disaster but don't be so quick to mark this one off the list; the SBA is able to assist small business owners, homeowners and even some renters after an area has been declared a disaster.
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Mortgage interest rates at record lows</title>
            <link>http://www.equitybuild.com/blog?post=73</link>
            <description><![CDATA[According to the Zillow Mortgage Marketplace weekly update, The national, 30-year fixed-mortgage rate (FRM) slightly decreased from a week earlier, reverting back to the record low average of 4.28% set two weeks ago.  , 30-year rates vary regionally, of course, but the majority of states witnessed a deflation. Most large states saw a decline in rates: California's current rate of 4.33% is down from 4.34% last week; New Jersey's at 4.26% is down from 4.28%; Pennsylvania's at 4.32% is down from 4.33%; Illinois' at 4.3% is down from 4.34%, and Florida's at 4.21% is  down from 4.24%.

Rates substantially decreased in New York to 4.25% from 4.41% and Texas to 4.19% from 4.29%. Rates increased in Massachusetts to 4.22% from 4.28%.  Zillow reported the national average rate for 15-year fixed home loans remained flat at 3.86%, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.23%.  Zillow's rates are based on real-time mortgage quotes from lenders registered with, but not exclusively bound to the company. The national average comes from thousands of daily quotes given to anonymous borrowers through their website. State averages are also available.]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>What's the better investment: ADR's or Real Estate?</title>
            <link>http://www.equitybuild.com/blog?post=72</link>
            <description><![CDATA[What's better...American Deposit Receipts (ADR's for short) or real estate? In recent months there has been a great deal of interest in ADR's as a convenient way for American investors to own shares of foreign corporations without the risk associated with overseas investing. Add in the prospect of dividend paying ADR's and you have a recipe for success...or do you? Today we will investigate the pros and cons of investing in ADR's to determine how it measures up against real estate.

ADR's Defined

American Deposit Receipts are a special type of stock that allows investors the opportunity to mirror the value of foreign corporation shares while retaining the convenience of purchasing just like stocks while using US dollars and without the need to use a foreign trading desk.

The benefits of an ADR are impressive; the ability to easily purchase a stake in a foreign owned corporation, dividend paying yields and many of the same protections investors have come to rely upon when investing domestically.

ADR's Profit Potential & Pitfalls

Not only do ADR's benefit from the currency exchange, rapidly rising economy in emerging markets and general growth trends but some ADR's also pay dividends which can create an even more enticing profit potential.

Unfortunately, all that glitters isn't gold especially when it comes to ADR's. ADR's are handled very differently when it comes to the underlying deposits on hand at the bank so it is essential to fully understand who is holding what and the reporting requirements before investing. It's also important to note that the exchange rate may work in reverse, effectively reducing profits and yield due to exchange imbalance.

Compare & Contrast

By now it should be obvious that ADR's certainly represent an interesting investment prospect; rising dividends, potential for capital appreciation and exchange rate returns... but how do they compare to real estate?
After all, the most important aspect isn't what the media thinks but how much profit an investment can generate for your personal portfolio.

To find out the facts, we took the time to research some of the most attractive dividend paying ADR's currently available and found the majority provide dividends of less than 5% (most in the 1% to 3% range) yet trade at premium levels when compared to the cost of purchasing a similar product in the original nation of origin. Use of leverage may be restricted, lack of familiarity with ADR's often results in a less robust trading floor due to decreased volume and perhaps most important of all...the real rates of returns often fall short of those enjoyed by average real estate investors just like yourself.
From Chris McLaughlin
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>National home prices increase for fifth straight month</title>
            <link>http://www.equitybuild.com/blog?post=71</link>
            <description><![CDATA[National home prices rose in June from the same time in 2009, marking the fifth consecutive month of year-over-year increases, according to the latest report from real estate services and data provider CoreLogic.  National prices, including distressed sales, rose by 1.4% in June from a year earlier. The yearly appreciation slowed from the 3.7% increase in May from one year earlier. The May increase was revised up from the initial 2.9% estimate.

"Home price volatility and collateral risk remain very high," said CoreLogic chief economist Mark Fleming. "The stabilization phase and policy intervention since the spring of 2009 has run its course. Prices are expected to further moderately decline as the economy remains weak through the fall."  CoreLogic called the 2.3 percentage point deceleration from May "very large by historical standards," with deceleration most pronounced in more expensive and distressed housing markets.  Excluding distressed sales, prices rose 0.2% in June from one year earlier.
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Interest rates at historic lows mean NOW is the time to invest!!</title>
            <link>http://www.equitybuild.com/blog?post=70</link>
            <description><![CDATA[Here we go again setting new records.  Freddie Mac's weekly report said the 30-year fixed rate slipped to 4.44% for the week ended Thursday, the lowest since it began tracking the rate in 1971. Last week's rates stood at 4.49%, and a year ago it was at 5.29%.  The 15-year fixed rate fell to 3.92% this week, the lowest since Freddie Mac began tracking it 1991, down from 3.95% last week and from 4.68% a year ago.  Adjustable-rate mortgages also declined, with the 5-year rate falling to 3.56% this week, the lowest since 2005 when the lender began tracking it.

Mortgage tracker Bankrate.com, which surveys large lenders across the country, said the average 30-year fixed loan sank to a record low for the fourth consecutive week, falling to 4.57% from 4.66% the previous week.  The 15-year fixed rate, which is a popular option for refinancing, also fell to the lowest level in the history of Bankrate's 25-year old survey, dipping to 4.06%, from 4.11% the week before.  While the 1-year adjustable-rate mortgage held steady at 4.8% for a fourth week, the 5-year adjustable rate mortgage dropped to a record low of 3.92% from 3.95% the previous week.

Retail sales up

According to the Commerce Department, total retail sales rose 0.4% to $362.7 billion, compared with June's 0.3% decrease.  The June drop was revised from the originally reported 0.5%.  The overall sales percentage gain was slightly lower than anticipated. Economists surveyed by Briefing.com had expected sales would rise by 0.5% during the month.

Consumer spending accounts for two-thirds of U.S. economic activity, so retail sales and related reports are closely monitored to gauge the health of the economy.  Sales excluding autos and auto parts rose 0.2% last month, in line with economists' forecasts. In June, sales on the same basis were down 0.1%.  Motor vehicle and parts sales also rose 1.6% in the month, and gasoline store sales rose 2.3%.  Overall, retail sales are up 5.5% over July last year.
This combination of low rates and early indications of a rebound in the economy raises a critical question you need to answer: If I truly want to build wealth and become a real estate investor, what am I waiting for?
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Have housing prices found a &quot;bottom?</title>
            <link>http://www.equitybuild.com/blog?post=69</link>
            <description><![CDATA[According to the latest survey by the National Association of Realtors (NAR), in the second quarter, 100 out of 155 metropolitan statistical areas1 (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009.  The national median existing single-family price was $176,900 in the second quarter, up 1.5% from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less.

Distressed homes accounted for 32% of second quarter sales, down from 36% a year ago.  Total state existing-home sales, including single-family and condo, rose 9.1% to a seasonally adjusted annual rate2 of 5.61 million in the second quarter from 5.14 million in the first quarter, and were 17.3% above the 4.78 million-unit pace in the second quarter of 2009.  Sales increased from the first quarter in 44 states and the District of Columbia; 47 states and D.C. had increases over year-ago sales levels.  In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – showed the national median existing-condo price was relatively flat at $175,700 in the second quarter, down 0.5% from the second quarter of 2009. Twenty-six metros showed increases in the median condo price from a year ago and 29 areas had declines; the first quarter of 2010 showed 24 metros up, while only four metros saw annual price gains in second quarter of 2009.
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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        <item>
            <title>Is Real Estate an investment that's too good to be true?</title>
            <link>http://www.equitybuild.com/blog?post=68</link>
            <description><![CDATA[real estate investors that recognize a good thing when they see it are reaping huge economic rewards. It's easy to understand why they are optimistic; exceptional interest rates, huge discounts and plenty of properties to choose from...why doesn't everyone join in?
In what might seem like a contradiction, real estate might be suffering from the perception that it is too good to be true. Rather than take the time to really crunch the numbers, most Americans rely upon the media for most of their financial information (and then wonder why they aren't ready to retire sooner).

Aside from the somewhat dubious value of that strategy, they simply don't understand how good the current market really is; when they hear about a successful real estate investment, the typical reaction is disbelief or denial. For the benefit of those who are sitting on the sidelines or perhaps trying to talk a bit of sense into a friend or family member, let's take a few minutes to run a few simple calculations and comparisons.

House Price Illusions - One of the benefits of long term real estate holdings is the inflation hedge provided...it is also a major reason more people don't fully understand how to properly value real estate. For example, the median purchase price of a house in 1964 was roughly $19,000. As of 2009 (the last full year of data), the median purchase price was roughly $206,000...a seemingly sizable increase in nominal terms. However, when adjusted for inflation, the 2009 house would equal only $30,000 in 1964 terms.

Bargains Galore - Of course, in 1964 there were not as many houses on the market. Today it is a buyer's market with many homes selling well below the $200,000 level. In many areas of the nation it's possible to find relatively newer homes selling for less than half that amount...or the equivalent of only $15,000 in 1965 terms.

Better Rates - The savings don't stop with prices. Interest rates really make a difference in the total cost of a house; with 30 year fixed interest loans below 5% and relatively low down payment, houses remain even more affordable today than at almost any time in the past 4 decades. Combined with a higher minimum wage, it's possible for two minimum wage earners with decent credit to purchase an affordable starter home for roughly the cost of a car payment...and lock in that great monthly payment for a full 30 years.

It's one of the most simple yet effective ways to storm-proof a portfolio for years to come. Young people have an especially great reason to turn to real estate and begin investing early; great prices, great rates and plenty of time on your side. It's a win-win proposition. Not sure it can be done...take the time to call us and see us in action. Young or old this is an equal opportunity venture you can't afford to miss.
]]></description>
            <author>info@equitybuild.com (Jerry Cohen)</author>
            <pubDate>Thu, 01 Jan 1970 00:00:00 -0500</pubDate>
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