Fed Leaves Key Interest Rates Unchanged

WASHINGTON, May 9 — The Federal Reserve acknowledged today that the economy is slowing but offered little hint that it is ready to lower interest rates anytime soon.

The central bank kept the benchmark interest rate on overnight loans between banks at 5.25 percent — the same level it has been since the Fed began its “pause” almost a year ago.

It also reiterated its basic stance of the last year, saying that inflation remains a bigger worry at the moment than slowing economic growth. “Core inflation remains somewhat elevated,” the Fed said in a statement accompanying its decision. “Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.”

The tilt suggested that the central bank will wait at least until after its next meeting in June, and perhaps much longer, before actually reducing the cost of borrowing.

Fed officials have openly acknowledged that economic indicators are flashing a bewildering mix of green and red. Economic growth slowed sharply in the first quarter of this year to an annual pace of 1.3 percent, the slowest pace in four years, and job creation in April slowed to its lowest level in two years.

But unemployment remains well below 5 percent, a level that many economists consider tantamount to full employment, and consumer spending has remained surprisingly strong.

Fed officials have openly acknowledged that they face greater uncertainty in both directions — the possibility of that growth will slow more expected and the possibility that prices and wages will climb faster than expected.

Amid that mixed economic signals, the Fed seemed determined to keep its options open and to avoid any implied promises about its next move on interest rates.

The Fed is now nearing the one-year mark of standing pat. After raising the overnight federal funds rate at every policy meeting from June 2004 to June 2006, the central bank’s ostensibly temporary pause in rate changes has a good chance of lasting until this fall or even longer.

Arnowitz & Associates. Taking Over The Market, One Property At A Time...

Visit us on the web @ www.ArnowitzProperties.com

Guide to Commercial Mortgage Lenders

Recently, I have had the pleasure to become involved with a commercial transaction. My client was seeking knowledge on how he could secure the best deal on his commercial loan. During my research I happened upon a great article by Irwin Speizer from Work.com. It is informative and includes many links for additional research.

Tips and strategies to land the best deals on commercial real estate loans
If you want to buy or expand an office complex, warehouse or retail building, you need a commercial mortgage. Commercial loan rates can vary considerably based on the amount, duration and type of loan as well as on the lender. That's why it's so important to choose the right commercial mortgage lender. Doing so can help you:
1. Secure financing to buy or expand your business property.
2. Secure a long-term location without rental rate hikes.
3. Profit from the increase in value of your business property.
4. Secure a mortgage loan at a favorable rate and term.
5. Increase your tax deductions.
Action Steps.
The best contacts and resources to help you get it done
Prepare your financialsCommercial mortgage lenders want to see hard evidence that you can repay the loan, including financial statements, balance statements, profit-and-loss statements, projected cash flow statements and more. Lenders may want to see a business plan as well as background information on you and your partners.
I recommend:
Keep this commercial loan readiness checklist handy so you know which financial statements to prepare. Download a sample balance sheet and a profit-and-loss statement from UrgentBusinessForms.com, which also sells templates in Excel, PDF and Word formats. A downloadable template for cash flow projections is available from 1000Ventures.com.
Know your ratios. Most commercial mortgage lenders require certain percentages for three important ratios: debt service coverage ratio (DSCR), loan to value ratio (LTV) and debt ratio. DSCR is the net operating income divided by the mortgage payments. LTV is the total loan amount divided by the fair market value of the property. Debt ratio is determined by dividing your monthly debt obligations by your monthly income.
I recommend:
Keep abreast of commercial loan rates and use the debt service calculator courtesy of CommercialBanc.com to estimate your DSCR. Shop for mortgage lendersThe commercial mortgage and commercial lending market is crowded with bankers and commercial mortgage brokers eager to place your loan. Choosing one requires careful consideration of rates, terms, duration, down payment and other conditions. Often the bank that handles your business checking accounts may be willing to offer you a commercial mortgage loan at an attractive rate or with favorable terms in order to get more of your business.
I recommend:
Among the big banks that offer commercial mortgage loans to small businesses are Wells Fargo, Citibank and Wachovia, which allows you to apply online. Among the numerous online services that help you shop for commercial mortgage loans are iBank and Businessfinance.com. Fill out a short online form at BuyerZone.com to receive quotes from several commercial mortgage lenders. Negotiate a deal and close the loan-Choose two or three lenders that seem to offer the best deals and most closely match what you need. Negotiate with each one, letting them know that you're shopping several other sources. Having options gives you at least some leverage in the negotiation process. Once you have decided on your top pick, proceed to finalizing your commercial mortgage loan. It's wise to use an attorney to review the loan documents and make sure your interests are served and protected. Your attorney can also help walk you through the closing.
I recommend:
The Capital Consortium offers a number of sample mortgage loan documents online for review. Find an attorney who specializes in real estate at AttorneyPages.com.
Tips & Tactics Helpful advice for making the most of this Guide
Learn from rejection:
If you get rejected for a commercial mortgage loan, find out why and try to remedy the shortcoming. Then apply again, perhaps with a different lender.
Watch for balloons:
Commercial mortgage loans are often for periods of 10 years or less, with the entire remaining amount due at the end of the term as a balloon payment. Be prepared to refinance or pay off the balance.
Down payments required:
Most lenders require at least a 20 percent down payment on a commercial loan.
Look for hidden costs:
Extra loan fees and costs can add up. Lower-interest loans can sometimes cost more because of extra fees and charges.
Keep your credit clean:
If you have other business credit lines, keep them up to date and out of trouble. Any bad credit marks can make mortgage lenders leery.
Pay attention to restrictions:
Mortgage lenders will sometimes impose restrictions on the use of your property as a condition of the loan. Be sure to ask about any restrictions and make sure that you agree with them.
Recommended Solution Providers:
Key Small Business: Loans and Lines of Credit
Offers small businesses term loans and lines of credit.
Wachovia Small Business: Lending
Small business credit options including commercial mortgage, business and construction loans.
Citibank Commercial Real Estate Group
Includes lending options for retail, office and industrial uses.
US Bank: Small Business Services
Includes commercial lending and commercial construction lending services.
Business Finance: Commercial Mortgages
Search commercial mortgage sources by capital type or funding category.
LendingTree.com
Search lenders for commercial purchase, refinance, construction and short term bridge loans.
Best Sites to Learn More
BNET Commercial Lending
Industry white papers on aspects of commercial lending including mortgages.
NFIB: Leasing
Articles covering leasing versus owning commercial properties.
Entrepreneur.com: Expansion Financing
Articles on how to obtain financing for your company including commercial mortgages.
AppraisalToday.com
Commercial mortgage backed securities overview article.

www.ArnowitzProperties.com
Taking Over The Market One Property At A Time....

Really Useful Web Sites

1. Public Records Online Directory
(http://publicrecords.netronline.com)
A one-stop portal to access online info about property tax assessments, deeds, and recorded property documents. Options also include parcel maps, property detail reports, and comparables. There's also a foreclosure search by ZIP code.

2. Knowledge @ Wharton
(http://knowledge.wharton.upenn.edu/)
Insights from some of the best business minds in the country. The site includes sections with articles on technology, marketing, finance and investment, business ethics, and entrepreneurship.

3. U.S. Census Bureau
(http://www.census.gov/)
The Census Bureau offers info on population, income, age and other factors that can affect home buying. The American Community Survey is a new annual nationwide survey on how communities change.

4. National Bureau of Economic Research
(http://www.nber.org/)
Access to a wide range of key economic indicators.

5. PropertyShark.com
(http://www.propertyshark.com)
Nationwide search of Foreclosures, for sale, comparables, maps and lists.

6. Real Estate Terms Online
(http://www.realestatewords.com)
Every person working in real estate or planning to buy or sell real estate can benefit by using this free real estate dictionary. This dictionary of real estate terms is one of the most extensive in the industry and is used by many real estate agents, real estate brokers, mortgage brokers, and instructors in major real estate schools across the country.

7. REALTOR.com
National MLS search engine.

8. Arnowitz Properties
(http://www.arnowitzproperties.com/)
Useful information on South Florida Real Estate. Including National Data Base of ALL properties for sale. A Featured Property section for local area listings, mortgage calculators, Buyer Information, Seller Information, and FREE School Reports.

Dad's In Charge

Publication: The Miami Herald
By: Cindy Krishner-Goodman
Click here for the original article.

Today's dads are more involved with their kids' lives, this we know. But there's more going on.
A sharp rise in equitable-divorce parenting setups has more fathers doing a juggling act. While custody setups in the past had children living with one parent and visiting the other on weekends, now the trend is toward shared parenting arrangements with kids splitting their living time between Mom and Dad.

Conquering the time- management challenge for these fathers takes serious negotiations and often, changes at work. As Father's Day approaches, I spoke with some divorced dads who balance the consuming demands of earning a paycheck with child care in an era in which Dad still is supposed to put his job first.

They are testing their employer's family-friendly policies, creating their own flexible arrangements and dealing with the emergencies that crop up with children.
''There used to be a presumption against joint custody, but the reality today is more and more fathers are wanting and getting it,'' said Robert Merlin, a Coral Gables family lawyer. ``That may mean they have to change the way they live their lives.''

One Miami father has done just that. Bradley Arnowitz's twin daughters are toddlers, the age when child-care issues often interrupt work schedules. Just a year ago, Arnowitz faced the working mom's nightmare -- a nanny crisis. When his nanny didn't show up one morning, Arnowitz resorted to bringing his girls with him to show a home to a potential buyer. ''Now I call them my deal closers,'' he says.

But Arnowitz knows he's fortunate. As a real estate agent who sets his own schedule, Arnowitz can zip home at lunchtime to pick his twins up from preschool or leave mid-afternoon to take them to gymnastics. He can lug the 2-year-olds along on a work appointment without repercussions to his advancement.

MAJOR CHANGES
Still, the 37-year-old Arnowitz says he has made major changes post-divorce, settling into a life in which his daughters are with him three days a week and every other weekend. To cope, he teamed up with his former competitor, gave up his side job as a spinning instructor and moved his real estate company's main office closer to his home in Aventura. He employs a full-time nanny to assure coverage for days when the girls are in his care.

''I have foregone income and made sacrifices personally and professionally, but I fought hard for this arrangement,'' says Arnowitz, principal of International Realty Trust Group. To be sure, divorced mothers make similar sacrifices and are three times as likely to have primary custody of children under 18. However, more than 1 million divorced fathers have children who live with them more than part time, and that number rises each year, according to Census figures.

PROMOTION SACRIFICED
But even in today's family-friendly workplaces, it can be tough for a dad who needs to pick a child up from after-school care by dinner time. One divorced dad told me he sacrificed a promotion because he leaves work at 5 p.m. two days a week to pick up his sons from school. Managers at his company, he says, are expected to work late.

About two out of five single fathers believe they will jeopardize job advancement by using flexible work arrangements, a 2002 survey by the Families and Work Institute shows. Men are less willing to take that risk, the survey shows.

David Sacks, chief of anesthesiology at Plantation General Hospital, says he tries to accommodate requests from divorced fathers who have their kids specific days of the week. He himself is a divorced father who shares custody of his two daughters with his ex- wife, Lisa.
Sacks says he has set up a support system that includes Lisa and a nanny/baby sitter who drives the girls to school on the mornings they are with him and he starts work at 7 a.m. While it can be challenging blending schedules with his job and his ex-wife, Sacks says shared custody pays off.

''I feel like I'm a major player in bringing up my kids versus an observer,'' he says.
David Levy, CEO of Children's Rights Council, says most states, including Florida, now encourage shared parenting. ``There is evidence that kids tend to have better relationships with both parents, are less involved in crime and drugs, finish high school and go on to college.''
Now, the burden of bringing workplaces up-to-date seems to rest on dads themselves. So far, Arnowitz, clients and staff are understanding: ``I can be at the park with my BlackBerry and my Bluetooth. I can make it work, because in the end, it's all about the kids.''

Arnowitz & Associates, Taking Over The Market, One Property At A Time...

Visit us on the web www.ArnowitzProperties.com

Housing Indicators

The National Assocation of Realtors allows me to share their research and Knowledge with you.

Housing Indicators
Existing-Home Sales (February) 6.69 million units*
Existing-Home Median Price (February) $212,800
Housing Starts (February) 1.53 million units*
New Home Sales (February) 848,000 units*
*seasonally adjusted annual rate

Upcoming Releases
Apr. 11: Housing & Economic Forecast
April 24: March Existing-Home Sales

Latest Economic Indicators:
Housing Indicator
Existing-Home Sales
6.69 million units*
Pending Home Sales Index
109.3
New-Home Sales
848 Thousand units*
Housing Starts
1.525 million units*
Housing Affordability
114.9
Mortgage Rates
6.14%
Economic Indicator
GDP
2.5%
Employment Situation
97,000
Retail Sales
1.0%
PPI
2.0%
CPI
0.0%
Consumer Confidence
109.0

Arnowtiz & Associates, Taking Over The Market, One Property At A Time....

Visit us on the web www.ArnowitzProperties.com

Private, The Only Way To Fly

Dear Friends,
Allow me the honor of accompanying you to Paradise, via private plane. All at my Expense!
The Residences at Atlantis. Paradise Island, Nassau Bahamas.

Be my guest as we fly from Ft. Lauderdale Executive Airport to Nassau in order to preview one of the finest projects available.

Enjoy lunch at "The One & Only" Resort and relax as we tour the property. Enjoy a massage, my compliments. As night time rolls around our appetites are awakened with a Dining experience like nothing else as we feast on the delicacies created by the chefs of Nobu! Make your way to the Casino and should luck have it! You will become one of the select few who own a piece of paradise!

Please contact me directly for details. (305) 776-6113
or via email Brad@ArnowitzProperties.com

Arnowitz Properties. Taking Over The Market, One Property At A Time....

www.ArnowitzProperties.com

Knowing When The Market Is Up -- or Down

The past year saw a slowdown in real estate markets across the country. But the term "slowdown" is relative and should be used with care: Although we are in a downward trend some areas have seen price increases.

Given the localized nature of real estate, it pays to ask if there are any clues which suggest that the market is moving in one direction or another. And usually, if you know where to look, such clues exist.

Here are some of the things you should consider:
Prices. Most communities have local brokers who produce customized pricing data for neighborhoods, HOA and communities. Such information is often available, and my team of experts would be more than happy to provide it for you.

Days On The Market. An important measure of local activity concerns the length of time it takes to sell a typical home -- some will take longer, some will sell faster but there is a general average which gives some sense of market activity. Be careful to compare like periods -- summer versus summer or January versus January -- to get comparable results. For details, speak with us.

Population. People have to live somewhere, if the local population is growing that means there is more demand both for owner-occupied homes and for rentals. Check with your local economic development office for specifics.

New Home Starts. While more people create demand, more units create supply. Check with the local home builder's association or the economic development office and ask about construction permits and starts.

When looking at general statistics you have to use care. For instance, broad market trends may include both condos and fee-simple properties. It may be that the local market is doing well generally but condo prices have stalled -- or vice versa. Call or email me, I will provide specifics.

Recorded sale prices may not reflect actual transaction values. If a home sells for $500,000 but the owner pays a 3 percent "seller contribution," then the real price to the owner is less than what the records show. To make sense of this recorded information call or email us, we are the local brokers who actually negotiate prices and terms.

Watch Those Interest Rates. Whether you're a buyer or seller, lower rates are good for real estate while higher rates constrict demand and reduce sales.

Check For Jobs. Most people finance the homes they buy and therefore most people need jobs. When local employment is rising that's a good sign for real estate, when the local job count goes down look for fewer sales and moderated prices.

Read The Local Paper. Local newspapers are filled with coverage that impacts real estate. Look for planned malls, new school construction and news happenings. All suggest where local growth is headed.

It's Not A Sure Thing. Regardless of what the statistics say, real estate demand is in part a by-product of factors which cannot be quantified. Speak with friends and neighbors. Talk to us. There are lots of shrewd, insightful local people who may have interesting ideas and opinions. Hear what other people have to say, especially people with different views so you can test your ideas.

Visit us on the web: www.ArnowitzProperties.com

Arnowitz & Associates, Taking Over The Market, One Property at a Time...