jeffturley

As I have listened to many people talk over the past year, the most common theme I heard was “we are cutting back.” Here are 5 Significant Perspectives from Resolve Lending, Inc. (5SPRL) to “create liquidity” without spending a dime one dime more then you are currently spending.

** See Facebook and Linkedin as I encourage collaboration of your ideas

1. “Coffee-UP” – If you are a fluffy coffee drinker – “Coffee-Up” and go with drip and enjoy an extra daily $2.00.
2. Bi-monthly Mortgage payment -- Recently I ran the numbers for a client with a $400,000 mortgage. If the client made bi-monthly payments over the life of the loan it saved the client $300,000.00 over 30 years – without paying a cent more than their current monthly payment. If your current mortgage is $200,000 and could save ½ point in rate then its $150,000. Yes it’s significant!

*I highly recommend you research this option to recoup equity you might have lost over the past couple of years. For more details and mechanics of the bi-monthly payment, contact me.

3. Service Providers in Person - Drop in on all your service providers (cable, phone, cell phone etc.) be nice, and ask what they can do to lower your payments. Recently I bought an I-phone at AT&T and realized I had over 10,000 unused rollover minutes. Just by checking , my cell plan I was able to lower my monthly plan. Dropping in on my cable company created the same result.

4. Remove your junk – Last year we sold a bed we had purchased 12 years ago. We sold it on Craigslist to a guy on the east coast for $800.

5. Homeowners Insurance - Increase your deductable. I have reviewed hundreds of mortgages and have found most clients are paying way too much for their homeowner’s insurance. Something as simple as increasing your deductible can save you big in the long run.

Past this along to a friend, and post your own simple ideas.

Happy New Year 2010

Jeff Turley / mailto:jeff@resolvelending.com

425-802-3019

The Charles Dickens’ Christmas Carol is a powerful metaphor for our current economic quagmire. I believe Japan is our own Jacob Marley. Nineteen years ago Japan went through a similar financial quagmire, so we must learn from Japan’s ghost of Christmas Past. Here are 5 Significant Perspectives from Resolve Lending, Inc. 5SPRL in attempt to understand our Present Christmas Ghost.

1. Ghost of Christmas Past: Japan’s Baby boom generation happened ten years prior to our US baby boom (80 million). Since that time we have been on parallel economic paths of booms and busts; yet we trail their cycle by 10-15 years. To understand where we go from here – study Japan. Look no further than the Home Price Index and its parallel on my website. Note the dates. http://www.scribd.com/doc/13970982/Richard-Koo-Presentation (look at slide#9)

2. Ghost of Christmas Present: Clinton once said to President Bush, “It’s the economy stupid.” I now want to scream at everyone, “It’s the borrower stupid.” In both the corporate world and the private sector we virtually have no borrowers. We cannot have inflation (hyper-inflation) if we don’t have borrowers – even if the rates are at “0”. Everyone is too busy paying off debt. http://www.scribd.com/doc/22347450/Credit-Watch-Nov2009

3. Ghost of Christmas Yet to Come: Japan went through 8 financial prime ministers during George W. Bush’s 8 years in office. We will do the same. Sign of Christmas future of the U.S?

4. Ghost of Christmas Future: Here is my question (which I do not have the answer) but do not hear anyone asking, “What is the current Ghost in Real Estate inventory?”

· The Shadow runs deep – currently a 24 month inventory – that is a given.

· How many Bank Owned Homes?

· Permitted Homes Ready to be built. How many “ready to be built homes – subdivision ready homes that are un-built.”

· Inheritance Homes: This is one other set of inventory you never hear about...rental homes, 2^nd homes, and inheritance homes will soon be coming on the market.

5. Ghost of Christmas Present: Every economic philosophic system is built upon the premise that companies and individuals would “always” be looking forward and maximizing profits. We are currently suffering from the ghost of “Christmas Past”. Both corporations and individuals are paying off debt - not demanding loans, therefore neither Keynesians (government spends until corporations and individuals start spending) or Reganomics “trickle down” (current tax breaks turn into debt elimination, not buying new TV’s) have an answer.

The irony to our economic quagmire is when both corporate and private sectors act like Scrooge - we are in deep trouble. Right now, and rightfully so, everyone is hording because of Ghost of Christmas Past. Until we all get a clear confident picture of the Ghost of Christmas Future we will be in this story for a long time.

Have a Merry Christmas and a Happy 2010!

Jeff Turley

jeff@resolvelending.com

I have spoken with hundreds of people across multiple financial, business and personal spectrums (MBA) and there is one word which defines this moment in history: crucible. Crucible, “a place, time or situation characterized by the confluence of powerful intellectual, social, economic or political forces: a severe test of patience or belief; a vessel for melting material at high temperatures.” Here are 5 Significant Perspectives from Resolve Lending, Inc. (5SPRL) as we walk together through our crucibles.

1. A crucible is a place where I ask the essential questions of life: Who am I? Who could I be? These are the moments in life where I meet myself. Make sure to consciously “stay in” the crucible long enough to meet yourself and extract meaning.

2. Blame game, emotional detachment, anger, fantasy, and busyness are often characteristics of an unwillingness to walk deeply into my crucible.

3. As I have traveled through my crucibles I find it easy to hide them. Leaders/parents often have to fake it to be the optimist of hope, but these moments wear a person out. Find a place to be authentically honest about your crucible. Optimism is essential, but too much is often a defection.

4. As my industry purifies itself in its crucible, one of my loan officers walked in my office and said, “Don’t wish it were easier, wish you were better.” I’ve repeated this often by saying “don’t wish it were easier, become better.” Being better is a journey of honesty, resolve, and focus. Some days I get it right ….other days… not so much!

5. I’m learning to guard against “catastrophizing” my crucibles. In other words, keep crucibles in their proper perspective. Recently, when my daughter was diagnosed with cancer a wise friend said, “Jeff, you now must learn ‘the discipline’ of living in the moment. Don’t live in the what if’s.” The diagnosis ended up being incorrect, but it allowed me to peer into the window of an incredibly difficult crucible.

As many of you know my industry is right in the middle of a crucible. We are all in this together. If you are wondering what to do please do not hesitate to email or call. If you are struggling with what you hear and need an extra voice - I’m around.

Rates are amazing!

Jeff

As I watch my four year old son become completely entranced by the funny little monkey, Curious George, I have started to think differently about one of our greatest psychological tools we have at our disposal in life, business, marriage and family…CURIOSITY. Here are 5 Significant Perspectives from Resolve Lending, Inc. that I hope will ignite your CURIOSITY.

1. Curiosity is the oil driving our passion for innovation. Yes, we might be an amazingly innovative country, but if we stop being CURIOUS we will die. This is the same type of death we find in business, marriage and family. When we stop wondering what could be. I want to be a person who facilitates and initiates curiosity.

2. Jacques Barzun delivers one question over and over in his epic, “From Dawn to Decadence”. “Do ideas really exert force?” – I would add “do curious ideas exert force?”

3. Arguable the greatest theologian of our generation, Jurgen Moltmann says, “Right down to the present day, theology (curious search for God) has continued to be for me a tremendous adventure, a journey of discovery into a, for me, unknown country, a voyage without the certainty of a return, a path into the unknown with many surprises and not without disappointments. If I have a theological virtue at all, then it is one that has never been recognized as such: curiosity.” Moltmann – The Coming of God.

4. Now what does that have to do with pulling us out of the Great Recession? A lot. Historically, recessions have been a time when new companies, like Microsoft, get born, and good companies separate themselves from their competition. It makes sense. When times are tight, people look for new, less expensive ways to do old things. Necessity breeds invention. “Therefore, the country that uses this crisis to make its population smarter and more innovative and endows its people with more tools and basic research to invent new goods and services is the one that will not just survive but thrive down the road.” Thomas Friedman – New York Times.

5. Fear drives a wedge into the heart of curiosity. Therefore in my own life when I face my fear in all areas of life it releases me to become contagiously curious and innovative.

I know what you are thinking: didn’t curiosity kill the cat, yes, but the lack of curiosity fried the frog –  yes, that is all mine.

Looking forward to hearing from you on the blog or Facebook.

Jeff Turley / President-Broker
Resolve Lending, Inc.
14205 S.E. 36^th St., Ste. 100
Bellevue, WA 98006
C: 425-802-3019 P : 425-519-3665 F: 425-519-3666
LIC#510-MB-26599
http://www.linkedin.com/profile?viewProfile=&key=18002950&trk=tab_pro

Resolve Lending, Inc. has seen significant opportunities for investors to innovate when traditional lending intuitions are unable to lend. Private Lending allows personal investors (you) to buy mortgage “bonds” secured with legal recorded deeds of trust with your name in first lien position. Investors also receive greater interest rate returns than from traditional banks with a very low loan to value. You tell us the rate of return you want.

Overview of Private Mortgage Lending:

1. Think of this as rental income in reverse without the “midnight phone calls.” You give us the rate of return you want and we find it!
2. Investors in some cases can use their current IRA’s and 401(k)’s to invest
3. Private Mortgage Bonds are at low “loan to value” on the subject property – most often 60% or less of current market value
4. Investors will be first lien holders tied to a legal note and deed of trust
5. Threshold of risk is built uniquely to the investor’s goals – extremely low loan to value of real property (60% or lower)
6. Returns are determined by the investor (interest rate return) – call me to discuss
7. Resolve Lending, Inc. only facilitates the transaction, therefore protecting the investment from fraudulent returns

If you are an investor or know someone (parents) looking for a safe secure place to get a great monthly return – even within your 401(k) and ROTH IRA, let us know; or if you are a borrower looking to secure money for an investment project Resolve Lending, Inc. might have a solution. When current bonds return the investor 2% and the stock market struggles to keep its head above water Resolve Lending, Inc. is seeking innovative solutions. We currently have loans for you to buy!

“Researchers now estimate that Vioxx may have been associated with as many as 25,000 heart attacks and strokes. And more than 1,000 claims have been filed against the company.” ** How do large organization i.e. WAMU, Wachovia or the U.S Government make such catastrophic miscalculations? Harvard Business Review** discussed the topic of bounded awareness – when cognitive blinders prevent a person from seeing, seeking, using, or sharing highly relevant, easily accessible, and readily perceivable information during the decision-making process.

5 Significant Perspectives from Resolve Lending, Inc.

1) SEE: Know what you are looking for, and train your eyes. Secret Service agents can scan a crowd to recognize risks. Business executives can do something similar by asking questions like, “What if our strategy is wrong? How would we know?” Simply asking the questions will force you to pay attention to areas you’re typically unaware of.

2) SEEK (0UT) – THE DEVIL: Challenge the absence of disconfirming evidence. Receiving recommendations without contradictory data is a red flag indicating that your team members are falling prey to bounded awareness. Assign someone to play the role of devil’s inquisitor (a person who asks questions, as opposed to a devil’s advocate, who argues an alternate point of view).

3) SITUATION: Unpack the situation. Make sure you’re not overemphasizing one focal event and discounting other relevant information. By consciously thinking about the full context of your situation, you’re less likely to disregard important data.

4) SHARE: Everyone has unique information; ask for it explicitly. Meeting agendas for top executives should require updates from all members, thus increasing the probability that important individual information is shared.

5) STRENGTH: When appropriate, will yourself to lead against the crowd. Knowledge is not enough, the strength “to act” will separate you from others.

Learning UNBOUNDED AWARENESS is more about marriage, parenting, finances and leadership in life. When I practice these internally then I naturally translate them in work, family and relationships.

Rates are still at historical lows give me a call, it would be great to catch up!

Jeff

** Decisions Without Blinders – Harvard Business Review OnPoint – Bazerman/Chugh

I have said before that I believe we are on parallel economic journeys with Japan. After completing Balance Sheet Recession: Japan's Struggle with Uncharted Economics and its Global Implications (written in 2003), here are 5 Significant Perspectives from Richard Koo’s Balance Sheet and his most recent article. I believe if you take a little time to read the article it will give you a greater depth of insight than most commentators on our current economic subject.

5 Significant Perspectives from Resolve Lending, Inc

1. Although many Americans may scoff at the idea that the United States has something to learn from Japan, the truth is that the magnitude of the housing price bubble in the United States from 1999 to 2006 (a 138 percent increase) was virtually identical to the one Japan experienced between 1984 and 1991 (a 142 percent increase). Furthermore, according to the housing price futures listed in the Chicago Mercantile Exchange, the magnitude of the decline in housing prices (33 percent decline from the peak in four years) is nearly the same as that of the earlier Japanese experience (37 percent decline from the peak in four years).

2. Many businesses and households may find themselves with negative net worth. When these businesses and households start paying down debt or increasing savings in order to regain their financial health and credit ratings, the economy enters what may be called "balance sheet recession" where monetary easing by the central bank fails to stimulate the economy or asset prices. -- Think about how many people have told you over the past six months “we are tightening the reins and looking for places to save.” For every latte you don’t buy think about how many other people have to cut back.

3. With nobody borrowing money and everybody paying down debt or increasing savings, even at zero interest rates, the deflationary spiral becomes a real possibility in this type of recession. – **This is the classic definition of “balance sheet recession.” Think of it as everyone deciding to payoff debt rather than borrow; deflation becomes inevitable. Here’s a prime example, house prices go up when everyone is buying and banks give out easy money. On the flip side, house values go down when everyone is selling. The same economic principal applies across every sector from lattes, cars, and dry cleaning.

4. “When the private sector is obsessed with their balance sheet woes and the danger of falling into a deflationary spiral is real, increasing government spending is far more efficient than a tax cut in boosting domestic demand.” **Why is this a true statement? Because if someone handed you a check today you most likely would either payoff debt or save. You would not go out and buy another house. What is true in the Micro (your home) is true in the Macro (Corp America and currently banks). Large corporations are doing what you are doing.

5. Critics will also argue that limiting government help to banks is not fair. But this is akin to the kidney and liver complaining when heart gets the special treatment. If the heart stops, everybody dies. Moreover, the U.S. and Japanese capital injections in 1933 and 1999 respectively ended up costing taxpayers nothing, as banks paid back the money in due course. ** If you had a heart attack you wouldn’t want your doctor to say, “that is a bad heart, forget the heart, let’s save those nice arms.” Sorry, President Bush was not an idiot and neither is President Obama. Step one “save the heart” step two, keep the blood/money flowing,” then work out the other issues.

As I prepared this post I found others wiser then myself to have found Richard Koo interesting. (Krugman/ Noble Winner /08) If you want to read more of Koo I have a seven page paper he wrote late 2008 I will email you, just send me an email.

http://krugman.blogs.nytimes.com/

http://www.ft.com/cms/s/0/774c0920-fd1d-11dd-a103-000077b07658.html

Rates are still great, email or call when you need me.

Thanks,
Jeff Turley