Win-Win Solution Blog

 

Stop Handing Your Equity to the Banks!

Many individuals receiving Notice of Defaults (NODs) do not realize they still have equity in their property! Statistics show that last year in 2009, nearly a third of all NOD properties were given over to the lenders with equity.

Fifteen years ago, I received a NOD on my property, and wanted to do whatever I could to prevent foreclosure. I learned firsthand how to save my equity, and since then, I’ve been helping thousands of others do the same.

Many foreclosures occur because their owners were not aware of the alternatives available to them. If this situation is similar to your own, I am here to help! I offer free and confidential preventative consultations to make sure you are fully equipped with the knowledge to make the best decision for your financial future.

That foreclosure clock is ticking…I encourage you to take control of your property and your finances now! Call me, Ildiko Pali, at (415) 412-8721, as soon as possible to stop the foreclosure process and keep what’s rightfully yours.

For more detailed information, please visit my Web site, SFforeclosure.com and click on “Homeowner Help” for detailed information on your options.

And remember, you are not in foreclosure, your property is.

Making the Space: Small Business Benefits in Recession

There goes the deli around the corner or your favorite store at the mall. It’s hard to walk a block without passing an empty storefront or to ignore neighboring offices hauling away their final boxes. With unemployment at over 12.3 percent in California, many offices are downsizing (if not closing) and the demand for office space has dropped along with it. Many small business have suffered in the recession, however, this market can offer great deals for those looking for new space.

Rick O’Neil of Hancock Properties represents companies or small corporations that want to relocate their office space or buy buildings. About a year ago, a long-time client and consulting firm wanted to stay in their existing office location and were given the option to do so. However, the landlord of the space didn’t want to acknowledge the declined market and demanded a much higher price than Rick knew the market called for.

The client had an office of 35-40 employees and was really worried about moving such a big group. The space was about 7,500 square feet and cost $3100/month. Rick advised them not to exercise their option to stay because the landlord based his prices on comparisons from prior, more prosperous years.

In the search for a Win-Win Solution, Rick was able to find his client a new space but it was 10-15% smaller. However, the company was able to work with the architect to create their new office from scratch. In doing so, they were more efficient with space and designed it to meet their exact needs. The new landlord paid for construction and rent was only $1900, saving them $1200 a month.

Rick has found that most landlords are finally dropping office space prices. One good thing about the recession is that it has created more competition and contractors are hungry to get construction done quick and for less money. “This market moves like a ship in the bay and it’s a good time in the next couple years for tenants to get lower prices,” says Rick.

The good news for small businesses is that the current market has created the optimum conditions to make the move from renting space to owning. Purchasing the perfect little building or office space is now more possible than ever. If its on your holiday wishlist or a goal for 2010, Rick advises taking the opportunity before the economic tide shifts market prices back up.

Thanks for Family With a Side of Gravy

Stomachs are stuffed, the pumpkin pie is almost done and family relaxes into their seats around the table. How many are worrying about what they don’t have instead of focussing on the postivies? A job. More money. A new home. Sometimes all it takes is reaching out to the loved ones around that dinner table for more than just an extra helping of stuffing to take your condition of life up to the next level.

Manny Kagan, a mortgage broker with Pacific Bay Financial Corporation, had a client in a similar situation. His client found an amazing investment property but didn’t have the money for a downpayment. In the current economy, it is very difficult to find lenders offering loans for no money down and the client wanted to keep their primary residence.

Discouraged they would lose out on this great opportunity, they went to Manny for help. Searching for a Win-Win Solution, Manny knew his clients had the option of taking out a second mortgage. As an even better alternative, he asked them to check and see if they had any other means of securing more cash, such as through family. It was an option they hadn’t even thought to consider.

To their surprise and good fortune, they were able to get more money from their father-in-law and lowered the necessary loan amount from $800,000 to $729,250. Manny found a lender that would offer the good terms and at the lowest possible interest rate. The client was able to close the purchase on time and keep their primary residence as planned.

In this time of thanksgiving, many become more attune to sharing and assisting their loved ones, especially when it comes to taking advantage of great opportunities. Through such help, we can collectively work to lessen the burden of stress associated with a job loss or housing trouble to reach Win-Win Solutions. And be sure to express such thanks by giving them their choice cut of the turkey.

Happy Thanksgiving!

Networking: Recession-Proof Your Life!

The safety net of a buddy system works for more than camp counselors, school teachers and hikers. One of the best ways to recession-proof a business or one’s personal finances is to utilize that buddy–or an entire network of support–to help pull you through the challenging times.

Michael Wolfe of Blue Sky Services found himself in challenging times at the end of last year and the beginning of 2009. His contracting business reached an abrupt halt despite strong marketing efforts. In January and February of 2009, the phone stopped ringing and for the first time ever, he was forced to miss mortgage payments on his home.

As a member of Business Networking International (BNI), Michael’s thoughts turned to fellow member Ildiko Pali of SFforeclosure.com at Princeton Real Estate in his search for a Win-Win Solution. Hoping to utilize Ildiko’s knowledge of foreclosure and experience in the short sale business, Michael literally looked up one day to see Ildiko crossing the street in front of him. He got over feeling awkward about losing his grasp on his finances, and approached Ildiko, who walked him through his options. With her counseling, he got a loan modification on his home with a low fixed interest rate that lowered his monthly payments and allowed him to stay in his home.

In another stroke of good luck, around March of 2009, business picked up dramatically and Michael is now having a really strong year. “I think people were just frightened. I couldn’t understand why I was doing so badly because I offer a good product and give good service,” said Michael. Once that sense of fear shifted, his marketing strategies proved to be effective and things turned around. He gives credit to Ildiko Pali’s expert advice and BNI for being a big part of that turnaround.

“Always work on your network,” advises Michael. Surrounding yourself with knowledgable and experienced professionals will come in handy when looking for any type of Win-Win Solution. Sometimes, when we are down on our luck during hard economic times, all it takes is being able to put aside our pride and ego to ask those close to us for help that is readily available. Getting over that fear and discomfort to reach out to a network streamlines the process of getting to higher ground.

Fighting for Family Ties in a Troubled Economy

Sibling squabbles are commonplace in childhood but how are they managed in adulthood? Family issues arise more than ever in times of financial crisis as they lose the patience to seek creative solutions. Instead of sticks and stones, family members toss around legal threats when confronted with the incredible stress of a recession, business decisions and money matters. Win-Win Solutions can become even more difficult to decipher when relatives complicate the scenario.

Developing patience is key to maintaining strong family ties but the best advice Gordon Yamamoto has to offer is: don’t mix business with family. As an attorney in San Francisco with over 34 years of experience, Gordon has encountered a number of clients that have suffered major material losses in the recession, including loss of revenue, income and even jobs. Many businesses have been forced to close down. One of Gordon’s clients related by family ties were struggling and forced to re-arrange their restaurant business after a few years as limited liability company (LLC) members. Overtime, family dissention developed over concerns of operational management and lack of compensation for services.

One family member felt they weren’t getting paid for their work and was losing out on their investments, time spent, and future compensation. The family member threatened possible litigation as they struggled to find a solution. Gordon proposed that they could either work a buyout or sell the business.

A lot of family businesses are never able to reach such agreements, says Gordon. This case took a lot of hard work and a bit of give and take on both sides to draft a solution. In the end, both parties were able to settle on a buyout agreement, which involved fixing a price and buyout terms. The concerned LLC member removed herself from the business and got a return on her investment, while the other family member retained the business.

Gordon worked to create this Win-Win Solution by first identifying all the issues, drafting possible resolutions and put into writing what everyone agreed to. The agreement was especially successful because his clients got what they were looking for and were able to maintain their family relationship.

Business relationships are challenged during trying economic times, but when family is involved, reaching a solution is of dire importance. A successful business may bring home the bacon but a family with the patience to reach an agreement can bring home real happiness.

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