According to the Scotsman Guide, the Alt-A mortgage is primarily a credit-score driven product, as its borrowers don’t have proof of income from traditional employment. The Alt-A loan alleviates the challenges associated with due diligence, such as providing income verification and documentation of assets. On the flip side, for this convenience, borrowers do pay a slightly higher interest rate, usually from a quarter- to half-point higher than traditional, fully documented loans. It turns out that…
Risk v Reward
Must be the week for hot button issues. Personal productivity yesterday and the Risk-Reward tradeoff today. I was having coffee (the usual: venti house blend – three creams) a while back with a very close friend and his wife. We were talking about doing some business together, and in particular he wanted to pick my brain about my particular method of buying, renting, and refinancing rentals such that I generally end up with none of…
How to Get More Done in the Next Seven Days Than You Did All Last Month
I happen to be pretty adept at getting things done. A LOT of things done. I have to be. I have a high visibility job with a global consulting firm and a client that is one of the top three biggest companies in the world. I serve on three committees in my community. I have four kids, a wife, and a terminally ill mother at home, I coach my son’s hockey team and I have…
Cash Flow Reigns Once Again
I love the Wall Street Journal! It’s often the only ray of objectivity in this ridiculously overcrowded and juvenile media that we’re constantly subjected to. Case in point – there’s a great article today about the “return” to cash flow. While I disagree that prudent investors ever abandoned it, I’m gratified that they realize that rational thinking seems to be returning to the marketplace. And while this piece refers primarly to the stock market, the…
Too Little, Too Late. A Friday Afternoon Rant.
Pop quiz – when was the last time that the government at any level got something right? Time’s up. Did you come up with anything? Nope neither did I. I wish that they would just STOP TRYING. I have finally come to the conclusion that INACTION on their part is the safest thing for us. Forgive my rant. Let me tell you about my latest refinance nightmare caused largely by the antics of the Keystone…
So Tell Me Again – WHY Aren’t You Buying Here??
I know that for most of you I have been preaching to the choir about the opportunities in real estate investing in Metro Detroit. But it’s nice to see some validation of it once in a while. The article below is taken from the Detroit News today, and it speaks volumes on the paradox that we’re facing here. Pay particular attention to the last paragraph, which I have set in bold. As I have been…