Lease Option
Lease Option is the act of controlling a property versus owning a property. You may not have money for a down payment or the credit rating to secure a loan.To understand the phrase "Lease Option;' simply break it apart. The first half is the "Lease” which is a contract wherein a landlord gives a tenant the right of use and possession of property for a limited period of time in return for rent. The second half is the "Option” which is a legal right or contract whereby a property owner sells a right to purchase his or her property to a prospective buyer at a pre-determined price.
People have been using this concept for decades. It has been called many different names such as layaway or rain check. People will put a small amount of money down to have the item or items held for them. They then make set payments for a designated time until they are able to take possession or full ownership. For those who do not know how to save, there are others who provide ways for them to have what they seek, commonly referred to as "renting or leasing.
The concept has developed so that today we now have the capability to have full use of things while we are still paying for them. We have installment sales and buying on credit. We have harnessed a way to join all of the sell, rent, use, and own process to benefit us. For years now it has been a common practice for consumers to lease automobiles for personal and company use, light and heavy machinery, and equipment. One can even rent or lease the tools needed to repair his or her car!
With the ever-changing face of real estate it was only natural for this concept to find its way into the market to help with frustrated sellers and buyers with less than optimal credit and money. It has become a viable concept in real estate to help all parties accomplish their objectives.
Lease Option is so simple that an agreement can be reached within hours. Plain language and forms can be used and transactions are easily structured so that everyone wins. Lease Option is a unique financing method providing alternatives to conventional lending and funding. It is the answer to the concept of nothing down. It is frequently negotiated profitably for all parties, and at times at a higher price yet still enabling the buyer a future profit.
If you need more information or planning buying or selling real estate in Dallas Texas do not hastate to contact me. www.ok8888.com (214) 682-8888 cell
Sunday, July 27, 2008
Dallas Texas Tax Lien www.ok8888.com
Tax Lien
What a Tax Lien or Tax Certificate?Tax liens or tax certificates are a kind of real estate "paper" investment and, at the same time, a real estate foreclosure investment. Basically, in a majority of states, when a property owner doesn't pay his or her real property taxes, investors are given an opportunity to pay those delinquent taxes (plus any associated penalties, accrued interest and costs) on behalf of that owner at an annual sale generally termed simply a "tax sale".
When an investor pays the delinquent real property taxes on behalf of an owner of real estate, the investor gets, as evidence of such payment, a document generally referred to as a "tax certificate", "tax lien certificate", "certificate of purchase" or "certificate of sale".
When an investor pays the delinquent real property taxes on behalf of the property owner and receives a "tax certificate", the investor receives, with the certificate, an assignment of the real property tax lien.
A real estate paper investor might lend money to any owner of real estate, receiving, in return, a promissory note (evidencing the indebtedness) and a mortgage or deed of trust (securing the investment).
Similarly a tax lien/tax certificate investor might pay a real estate owner's delinquent real property taxes, receiving, in return, a tax certificate (evidencing the payment) and an assignment of the real property tax lien (securing the investment).
Call Peter Wu at (214) 682-8888 cell www.ok8888.com
What a Tax Lien or Tax Certificate?Tax liens or tax certificates are a kind of real estate "paper" investment and, at the same time, a real estate foreclosure investment. Basically, in a majority of states, when a property owner doesn't pay his or her real property taxes, investors are given an opportunity to pay those delinquent taxes (plus any associated penalties, accrued interest and costs) on behalf of that owner at an annual sale generally termed simply a "tax sale".
When an investor pays the delinquent real property taxes on behalf of an owner of real estate, the investor gets, as evidence of such payment, a document generally referred to as a "tax certificate", "tax lien certificate", "certificate of purchase" or "certificate of sale".
When an investor pays the delinquent real property taxes on behalf of the property owner and receives a "tax certificate", the investor receives, with the certificate, an assignment of the real property tax lien.
A real estate paper investor might lend money to any owner of real estate, receiving, in return, a promissory note (evidencing the indebtedness) and a mortgage or deed of trust (securing the investment).
Similarly a tax lien/tax certificate investor might pay a real estate owner's delinquent real property taxes, receiving, in return, a tax certificate (evidencing the payment) and an assignment of the real property tax lien (securing the investment).
Call Peter Wu at (214) 682-8888 cell www.ok8888.com
short sale to avoid foreclosure www.ok8888.com
Short Sale to avoid Foreclosure 2008 www.ok8888.com
Many homeowners today are finding themselves in a tough spot, as the value of their homes dip but their mortgage payments increase. If you are in financial trouble and must sell your house because you can’t make the payments, doing so before the bank gets involved increases the possibility that you’ll walk away with a little equity, or at very least, without damaging your credit. You may also be able to work with your lender to restructure your payments, delay them temporarily until you get back on your feet, or refinance your current loan - for example, with a 40-year, fixed rate mortgage or a adjustable-rate mortgage that locks in an interest rate for five or so years. Though you might not want the loan forever, it may keep you in your house for now, until the market stabilizes, home market rebounds, or your income increases.
Perhaps you’re already behind on your mortgage payments, or are worried that you won’t be able to sell your house for what you owe on it. In that case, you may have considered a real estate “short sale.” This is preferable to walking away from the property, because it doesn’t do the same damage to your credit.
With a short sale, the lender agrees to accept less than the full amount owed on the property. Lenders allow sellers to do this because foreclosures are expensive, and they stand to lose even more if that seems imminent.
However, short sales aren’t always great for the seller. For one thing, it can be tough to get your lender to allow the short sale. Even if it’s approved, the lender may drive a hard bargain - you may have to fight to get permission to sell your house for what you know it can bring on the open market.
Moreover, some short sales aren’t the end of the road - lenders have been known to include promissory notes in the paperwork leaving you on the hook for the remaining balance.
Furthermore, any amount your lender forgives is considered “income” to you. That means the lender will likely report it to the IRS, and you’ll have to pay income taxes on it. Although, past year (2007) congress passed the law which allows certain homeowners to do short sale and do not pay any taxes on “income”. If you leave in New Jersey and would like to know more about this law and if you can qualify, please send me an email and I will gladly assist you.
While it’s true that a short sale is preferable to foreclosure, which can seriously damage your credit and make it much more difficult and expensive for you to buy a house in the future, you’re better off selling on your own, if you can, Of course, with foreclosure looming, a quick sale works best - even if it means getting a little less cash and in this case contacting realtor would be the best option. In future, I’ll give you some tips for making your house attractive to prospective buyers so that you can try to get out of the market before turning to the bank.
Call Peter Wu at (214) 682-8888 cell
Many homeowners today are finding themselves in a tough spot, as the value of their homes dip but their mortgage payments increase. If you are in financial trouble and must sell your house because you can’t make the payments, doing so before the bank gets involved increases the possibility that you’ll walk away with a little equity, or at very least, without damaging your credit. You may also be able to work with your lender to restructure your payments, delay them temporarily until you get back on your feet, or refinance your current loan - for example, with a 40-year, fixed rate mortgage or a adjustable-rate mortgage that locks in an interest rate for five or so years. Though you might not want the loan forever, it may keep you in your house for now, until the market stabilizes, home market rebounds, or your income increases.
Perhaps you’re already behind on your mortgage payments, or are worried that you won’t be able to sell your house for what you owe on it. In that case, you may have considered a real estate “short sale.” This is preferable to walking away from the property, because it doesn’t do the same damage to your credit.
With a short sale, the lender agrees to accept less than the full amount owed on the property. Lenders allow sellers to do this because foreclosures are expensive, and they stand to lose even more if that seems imminent.
However, short sales aren’t always great for the seller. For one thing, it can be tough to get your lender to allow the short sale. Even if it’s approved, the lender may drive a hard bargain - you may have to fight to get permission to sell your house for what you know it can bring on the open market.
Moreover, some short sales aren’t the end of the road - lenders have been known to include promissory notes in the paperwork leaving you on the hook for the remaining balance.
Furthermore, any amount your lender forgives is considered “income” to you. That means the lender will likely report it to the IRS, and you’ll have to pay income taxes on it. Although, past year (2007) congress passed the law which allows certain homeowners to do short sale and do not pay any taxes on “income”. If you leave in New Jersey and would like to know more about this law and if you can qualify, please send me an email and I will gladly assist you.
While it’s true that a short sale is preferable to foreclosure, which can seriously damage your credit and make it much more difficult and expensive for you to buy a house in the future, you’re better off selling on your own, if you can, Of course, with foreclosure looming, a quick sale works best - even if it means getting a little less cash and in this case contacting realtor would be the best option. In future, I’ll give you some tips for making your house attractive to prospective buyers so that you can try to get out of the market before turning to the bank.
Call Peter Wu at (214) 682-8888 cell
Friday, July 25, 2008
Internet Marketing www.ok8888.com
WCCC Internet Marketing Round Table: How to dominate the search engines with 7 proven strategies to creating strong web presence
When there are yarn balls being tossed around and an oversized golf club being used as a pointer, you know Corey Perlman has brought his eBoot Camp to town. Corey will share his seven proven strategies to creating a powerful Web Presence that will enable his audience to dominate the search engines and flood traffic to their Website.
"This workshop was absolutely incredible," said Preston Smyth of Detroit, Michigan. "I personally gained knowledge that will help grow my business. Getting the info on sending out articles, wow! Well worth the price. All I need to do now is apply!"
Corey Perlman has been a student of Internet Marketing for over ten years. He has a Master's Degree in Marketing from Florida State University and spent three years working with the eCommerce division of General Motors. During his tenure with GM, he participated in a 37 city tour; teaching over 3000 dealership personnel how to do business through the power of the internet. Corey has conducted numerous Internet marketing seminars to public audiences as well as small and mid size companies.
Mark Lang and Mark Maupin host the Internet Club on the second Thursday of each month, from 6pm to 9pm. He looks forward to seeing many new faces at this event. Not a member? Not a problem! Join us for the meeting and we will get you signed up.
Call (214) 682-8888
When there are yarn balls being tossed around and an oversized golf club being used as a pointer, you know Corey Perlman has brought his eBoot Camp to town. Corey will share his seven proven strategies to creating a powerful Web Presence that will enable his audience to dominate the search engines and flood traffic to their Website.
"This workshop was absolutely incredible," said Preston Smyth of Detroit, Michigan. "I personally gained knowledge that will help grow my business. Getting the info on sending out articles, wow! Well worth the price. All I need to do now is apply!"
Corey Perlman has been a student of Internet Marketing for over ten years. He has a Master's Degree in Marketing from Florida State University and spent three years working with the eCommerce division of General Motors. During his tenure with GM, he participated in a 37 city tour; teaching over 3000 dealership personnel how to do business through the power of the internet. Corey has conducted numerous Internet marketing seminars to public audiences as well as small and mid size companies.
Mark Lang and Mark Maupin host the Internet Club on the second Thursday of each month, from 6pm to 9pm. He looks forward to seeing many new faces at this event. Not a member? Not a problem! Join us for the meeting and we will get you signed up.
Call (214) 682-8888
Suicide - Only One Way Out www.ok8888.com 214-682-8888
Massachusetts mother Carlene Balderrama was so despondent over the imminent foreclosure on her home and the family's dire finances that she apparently saw only one way out: suicide.
Balderrama, 53, hadn't paid the mortgage on the three-bedroom house she lived in with her husband in 42 months, the Boston Herald reported. John Balderrama said he had no idea.
“I had no clue,” he told The Associated Press. He said that unbeknownst to him, his wife had been fielding letters from the mortgage company, PHH Mortgage Corp., and shredding them.
Police investigating her shooting say all the evidence points toward the conclusion that Balderrama took her own life.
“We’re still investigating, but it definitely appears to be a suicide,” Taunton Police Chief Raymond O’Berg told the Boston Herald Thursday.
The Bristol County District Attorney's Office concurs.
“We might look at finances if we thought there was foul play, but all signs point to it being a suicide," spokesman Gregg Miliote told the Herald. "We’ll see where the investigation takes us.”
Related
Stories
House Foreclosures Rise 14 Percent in Second Quarter, More Than Double From a Year Ago
Massachusetts Woman Commits Suicide Before Home Foreclosure
/**/
Balderrama faxed a letter to her mortgage company about 2:30 p.m. on Tuesday warning that she'd be dead by the time they foreclosed on her house later that day.
She was.
Balderrama apparently shot herself once with her husband's high-powered rifle. Her body was found at 3:30 p.m., after PHH Mortgage called the police.
The mother of a 24-year-old son also apparently left her family a suicide note, discovered next to her body.
"Take the insurance money and pay for the house," she wrote.
It's unclear whether or not John Balderrama, who works as a plumber, will be able to collect money on his wife's life insurance policy, according to the Herald.
“She put in her suicide note that it got overwhelming for her,” he told the paper.
The $232,000 home in Taunton, Mass., about 35 miles south of Boston, was to have been auctioned off at 5 p.m. Tuesday. Interested buyers arrived to take a look while Balderrama's body was still inside, according to O'Berg.
O'Berg said Balderrama's fax read, in part, "By the time you foreclose on my house I'll be dead."
John Balderrama had tried to file for bankruptcy three times since the family purchased the house in 2002, the Herald reported. On two occasions, PHH Mortgage began foreclosure proceedings.
Balderrama's husband was earning about $95,000 a year as a plumber as of April 2006, according to the Herald, and reported bringing in $6,932 a month after taxes.
Click here for more on this story from the Boston Herald.
Balderrama, 53, hadn't paid the mortgage on the three-bedroom house she lived in with her husband in 42 months, the Boston Herald reported. John Balderrama said he had no idea.
“I had no clue,” he told The Associated Press. He said that unbeknownst to him, his wife had been fielding letters from the mortgage company, PHH Mortgage Corp., and shredding them.
Police investigating her shooting say all the evidence points toward the conclusion that Balderrama took her own life.
“We’re still investigating, but it definitely appears to be a suicide,” Taunton Police Chief Raymond O’Berg told the Boston Herald Thursday.
The Bristol County District Attorney's Office concurs.
“We might look at finances if we thought there was foul play, but all signs point to it being a suicide," spokesman Gregg Miliote told the Herald. "We’ll see where the investigation takes us.”
Related
Stories
House Foreclosures Rise 14 Percent in Second Quarter, More Than Double From a Year Ago
Massachusetts Woman Commits Suicide Before Home Foreclosure
/**/
Balderrama faxed a letter to her mortgage company about 2:30 p.m. on Tuesday warning that she'd be dead by the time they foreclosed on her house later that day.
She was.
Balderrama apparently shot herself once with her husband's high-powered rifle. Her body was found at 3:30 p.m., after PHH Mortgage called the police.
The mother of a 24-year-old son also apparently left her family a suicide note, discovered next to her body.
"Take the insurance money and pay for the house," she wrote.
It's unclear whether or not John Balderrama, who works as a plumber, will be able to collect money on his wife's life insurance policy, according to the Herald.
“She put in her suicide note that it got overwhelming for her,” he told the paper.
The $232,000 home in Taunton, Mass., about 35 miles south of Boston, was to have been auctioned off at 5 p.m. Tuesday. Interested buyers arrived to take a look while Balderrama's body was still inside, according to O'Berg.
O'Berg said Balderrama's fax read, in part, "By the time you foreclose on my house I'll be dead."
John Balderrama had tried to file for bankruptcy three times since the family purchased the house in 2002, the Herald reported. On two occasions, PHH Mortgage began foreclosure proceedings.
Balderrama's husband was earning about $95,000 a year as a plumber as of April 2006, according to the Herald, and reported bringing in $6,932 a month after taxes.
Click here for more on this story from the Boston Herald.
Thursday, July 24, 2008
short sale www.ok8888.com 214-682-8888
Short Sale www.ok8888.com 214-682-8888 cell
Are you searching for real estate deal that could save you a lot of money and at the identical time provides you outstanding real estate? A short sale may be the type of real estate deal that you need. With the foreclosure marketplace making historic highs and the snap of booming towns like Denver, San Francisco, and Seattle, short sales are becoming one of the most best-selling real estate purchasing methods in the real estate marketplace today.
A short sale calls for the buyer to have extensive cognition of both the real estate and the lending markets. Having the right tools in the real estate purchaser’s toolbox can save time and more important money. When you take on a short sale, you are grappling with two companies that are pressing to move a deal. The foremost company is the property owner who is in danger of being foreclosed or going insolvent and the second party is the bank that wants to cut its loses and get out of the mortgage taking at to the lowest degree any of the money back.
In the three stages of foreclosure, the parties of a short sale have chances to make negotiations with the loss mitigation department. Each stage has its gains and drawbacks, but time is the most important component when looking at each respective stage. With the number of foreclosures occurring all over the country, the time to create a short sale is now. As an investor, it is prudent to have cognition about both the property and the mortgage owner.
When searching remember to explore the real estate laws in your nation or the state that you are moving to participate in a short sale. Each state has different laws concerning the purchasing and selling of mortgages and your state might have particular foreclosure laws that might forbid you from making the kind of net profit you would like to produce. Laws can also dictate interest rates and the amount of savings you are allowed to earn.
It might be prudent to study a course in real estate purchases so you can go into the short sale armed to the teeth with knowledge or you can engage an agent that knows the ropes in short sales. This way you can pay up an upfront fee or commission and know that you are getting the best service for your money spent.
Prior to losing your house to foreclosure or bankruptcy think about another alternative, Call Peter Wu
at (214) 682-8888 cell www.ok8888.com 777Realty@gmail.com
Are you searching for real estate deal that could save you a lot of money and at the identical time provides you outstanding real estate? A short sale may be the type of real estate deal that you need. With the foreclosure marketplace making historic highs and the snap of booming towns like Denver, San Francisco, and Seattle, short sales are becoming one of the most best-selling real estate purchasing methods in the real estate marketplace today.
A short sale calls for the buyer to have extensive cognition of both the real estate and the lending markets. Having the right tools in the real estate purchaser’s toolbox can save time and more important money. When you take on a short sale, you are grappling with two companies that are pressing to move a deal. The foremost company is the property owner who is in danger of being foreclosed or going insolvent and the second party is the bank that wants to cut its loses and get out of the mortgage taking at to the lowest degree any of the money back.
In the three stages of foreclosure, the parties of a short sale have chances to make negotiations with the loss mitigation department. Each stage has its gains and drawbacks, but time is the most important component when looking at each respective stage. With the number of foreclosures occurring all over the country, the time to create a short sale is now. As an investor, it is prudent to have cognition about both the property and the mortgage owner.
When searching remember to explore the real estate laws in your nation or the state that you are moving to participate in a short sale. Each state has different laws concerning the purchasing and selling of mortgages and your state might have particular foreclosure laws that might forbid you from making the kind of net profit you would like to produce. Laws can also dictate interest rates and the amount of savings you are allowed to earn.
It might be prudent to study a course in real estate purchases so you can go into the short sale armed to the teeth with knowledge or you can engage an agent that knows the ropes in short sales. This way you can pay up an upfront fee or commission and know that you are getting the best service for your money spent.
Prior to losing your house to foreclosure or bankruptcy think about another alternative, Call Peter Wu
at (214) 682-8888 cell www.ok8888.com 777Realty@gmail.com
Wednesday, July 23, 2008
The Best of The Best in Town !!! Dalllas, Texas or Las Vegas, NV.
Most contacts in the Eleventh District reported steady, moderate economic growth in June and early July. The main exception was home builders, who reported a steeper decline in demand. Most contacts reported increased concern about price pressures and uncertainty about the national outlook. Rising prices for energy and transportation were reported as boosting costs for a wide range of industries and were said to be likely to lead to future increases in final product prices.
PricesContinued increases in energy and commodity prices are negatively affecting a wide range of industries. Many producers report that profit margins have been squeezed and that productivity gains are no longer sufficient to hold off product price increases. Because existing price contracts and many retailers require up to six months notice of price increases, many firms report that they plan to raise prices significantly in the second half of this year.
Since early June, light sweet crude prices have been fluctuating while setting record highs. Natural gas prices have also been high and volatile. Natural gas inventories are well below the inflated levels of last year. Futures prices for distillates (heating oil and diesel), spot gasoline, and oil- and natural gas-based chemicals have also increased sharply over the past six weeks.
Labor MarketThe labor market remained relatively tight, but most respondents reported flat to only slightly increasing payrolls. Respondents in slumping industries, such as those tied to construction of single-family homes, reported some reductions in hours worked and making some job cuts through attrition. Many respondents continued to report difficulty hiring skilled workers such as engineers, mechanics and certain administrative personnel. Overall wage pressures remain mild, but respondents reported an increasing number of workers asking for cost-of-living increases. One respondent also noted that the upcoming increase in the minimum wage will significantly increase the firm's wage costs.
ManufacturingProducers of materials used in home construction-such as brick, stone and lumber--reported continued weak conditions. Several construction-related manufacturing respondents reported larger than desired inventories and said that they are reducing production to bring inventories down. Although overall lumber prices are falling, some lumber producers in the District report that rising energy, freight and import costs have led them to increase prices.
Although still solid and above year-ago levels, demand for commercial construction materials continued to soften and is expected to weaken steadily. Respondents in fabricated metal production said that demand was flat to slightly down, that backlogs are decreasing and that new orders and expectations of declining nonresidential building suggest further weakening. Primary metal producers report that sales have been flat to slightly down while costs have shot up. One contact reported that his natural gas bill increased 100 percent over a year ago.
High-tech manufacturers reported continued moderate sales growth. Firms selling products outside the U.S. with most inputs priced in dollars are performing well. Semiconductors are seeing upward pressure on prices, although a recent effort to raise prices did not stick. Demand was reported as steady for communication devices. Sales to Asia remained strong but were weak in the U.S. and Western Europe.
Demand in the food products industry has been moderate with contacts reporting some recent improvement in sales growth. While demand from restaurants has slowed slightly, a pickup in retail demand has more than offset the slowing. High food prices continue to be a major concern, and manufacturers of processed food report that they have not yet been able to pass along all of the increases. Specialty transportation manufacturers such as aircraft parts and emergency vehicles say that sales remain solid and their outlook is positive. Oil-based ethylene producers are operating at relatively low rates, while those that use natural gas are enjoying large cost advantages and operating full out. Meanwhile, demand for polyethylene is strong because weak domestic sales have been offset by strong exports.
Retail SalesRetail sales were mixed--with discount stores reporting stronger sales and other retailers reporting flat to slightly declining sales. Transportation costs and prices of commodity-based products and imported goods continue to rise, squeezing profit margins. Inventories were reported at desired levels, and employment was up for firms with new stores but down for individual store locations. One contact reported that accounts past due have increased recently. Most retailers said that their outlook for the remainder of the year is grim because consumer budgets are tight and the economy is weak.
Auto dealers reported mixed demand. The switch to small, fuel efficient cars has continued and has led to a shortage of such vehicles. Consumers are paying sticker prices for some small cars while domestic auto producers are offering rebates and large discounts, especially on trucks.
ServicesDemand for temporary staffing services picked up slightly over the past six weeks. Orders were strongest for professional and technical workers in IT, accounting, energy and engineering services. Demand for entry-level clerical work remained weak, but demand for HR professionals and manufacturing workers edged up. One contact noted that the labor market in Texas is doing much better than in other parts of the country.
Demand for legal services continued to grow moderately, with most of the growth concentrated in litigation and bankruptcy. With the exception of continued strength in oil and gas, legal services to support transactions have declined. Demand for accounting services remained modest.
Trucking companies reported reduced shipping volumes in the last month. Import volumes have declined and are not being completely offset by exports. Record fuel prices, along with price increases in almost every area of operations are having a major impact on the industry. Railroad cargo volumes have been steady over the last 30 days. Rail shipments of residential construction materials continued on a downward trend and those of nonresidential building materials were only up slightly. Rail shipments of primary forest material--a leading indicator for residential construction-have edged up over the last four weeks. Shipments of motor vehicles fell sharply.
Airline demand has not changed much since the last survey. In response to rising jet fuel prices, airlines are reducing capacity, laying-off workers, and increasing fares.
Construction and Real EstateHomebuilders said that traffic and sales weakened fairly significantly in June, following weak but steady demand earlier in the spring. As a result, the pace of single-family building activity has declined at a rapid pace. Contacts said a number of factors--such as a weak stock market and higher gasoline and food prices--have weakened demand. On a more positive note, inventories of unsold homes continued to decline, especially at the lower end, and prices were holding up. There was some concern, however, about the large inventory of vacant lots and reduced funds for real estate lending.
Respondents say that nonresidential construction activity is beginning to slow and there are signs that activity may decline further. Commercial real estate respondents noted a continued decline in investment deals getting done, particularly for larger projects. There were reports of a general drying up of liquidity in the market and a flight of capital out of real estate. On the upside, higher quality assets did not see a major deterioration in value. Industrial and office leasing continued to weaken.
Financial ServicesFinancial services contacts reported that although there has been no significant decline in credit quality, they expect deterioration in coming months. In particular, the quality of mortgage and consumer loans is a concern as home prices soften and consumer budgets are strained. Contacts say that the increased cost of capital has induced them to widen loan interest rate spreads and to tighten non price terms of credit. Competition for deposits is very tough, and lenders are turning to other sources of liquidity. Commercial lending activity remains fairly solid.
EnergyRising energy prices have pushed oil and natural gas drilling sharply higher in recent months. Land-based drilling directed to unconventional sources of natural gas has seen the largest gains. Drilling companies are adding jobs but report having difficulty finding workers with the skills they need.
AgricultureRecent rains have provided some relief in most parts of the District suffering from drought-like conditions. Crop prices continue to be favorable and are helping offset high fuel, fertilizer and other production expenses to some degree. High feed costs and low hay and corn feed supplies have weakened prices for stocker cattle and are hurting livestock producers.
Call Peter Wu 214-682-8888 or Linda 469-569-0567
or Judi Rock (702) 577-7112 www.ok8888.com
for your Real Estate Needs in Dallas, Texas or Las Vegas, Nevada.
PricesContinued increases in energy and commodity prices are negatively affecting a wide range of industries. Many producers report that profit margins have been squeezed and that productivity gains are no longer sufficient to hold off product price increases. Because existing price contracts and many retailers require up to six months notice of price increases, many firms report that they plan to raise prices significantly in the second half of this year.
Since early June, light sweet crude prices have been fluctuating while setting record highs. Natural gas prices have also been high and volatile. Natural gas inventories are well below the inflated levels of last year. Futures prices for distillates (heating oil and diesel), spot gasoline, and oil- and natural gas-based chemicals have also increased sharply over the past six weeks.
Labor MarketThe labor market remained relatively tight, but most respondents reported flat to only slightly increasing payrolls. Respondents in slumping industries, such as those tied to construction of single-family homes, reported some reductions in hours worked and making some job cuts through attrition. Many respondents continued to report difficulty hiring skilled workers such as engineers, mechanics and certain administrative personnel. Overall wage pressures remain mild, but respondents reported an increasing number of workers asking for cost-of-living increases. One respondent also noted that the upcoming increase in the minimum wage will significantly increase the firm's wage costs.
ManufacturingProducers of materials used in home construction-such as brick, stone and lumber--reported continued weak conditions. Several construction-related manufacturing respondents reported larger than desired inventories and said that they are reducing production to bring inventories down. Although overall lumber prices are falling, some lumber producers in the District report that rising energy, freight and import costs have led them to increase prices.
Although still solid and above year-ago levels, demand for commercial construction materials continued to soften and is expected to weaken steadily. Respondents in fabricated metal production said that demand was flat to slightly down, that backlogs are decreasing and that new orders and expectations of declining nonresidential building suggest further weakening. Primary metal producers report that sales have been flat to slightly down while costs have shot up. One contact reported that his natural gas bill increased 100 percent over a year ago.
High-tech manufacturers reported continued moderate sales growth. Firms selling products outside the U.S. with most inputs priced in dollars are performing well. Semiconductors are seeing upward pressure on prices, although a recent effort to raise prices did not stick. Demand was reported as steady for communication devices. Sales to Asia remained strong but were weak in the U.S. and Western Europe.
Demand in the food products industry has been moderate with contacts reporting some recent improvement in sales growth. While demand from restaurants has slowed slightly, a pickup in retail demand has more than offset the slowing. High food prices continue to be a major concern, and manufacturers of processed food report that they have not yet been able to pass along all of the increases. Specialty transportation manufacturers such as aircraft parts and emergency vehicles say that sales remain solid and their outlook is positive. Oil-based ethylene producers are operating at relatively low rates, while those that use natural gas are enjoying large cost advantages and operating full out. Meanwhile, demand for polyethylene is strong because weak domestic sales have been offset by strong exports.
Retail SalesRetail sales were mixed--with discount stores reporting stronger sales and other retailers reporting flat to slightly declining sales. Transportation costs and prices of commodity-based products and imported goods continue to rise, squeezing profit margins. Inventories were reported at desired levels, and employment was up for firms with new stores but down for individual store locations. One contact reported that accounts past due have increased recently. Most retailers said that their outlook for the remainder of the year is grim because consumer budgets are tight and the economy is weak.
Auto dealers reported mixed demand. The switch to small, fuel efficient cars has continued and has led to a shortage of such vehicles. Consumers are paying sticker prices for some small cars while domestic auto producers are offering rebates and large discounts, especially on trucks.
ServicesDemand for temporary staffing services picked up slightly over the past six weeks. Orders were strongest for professional and technical workers in IT, accounting, energy and engineering services. Demand for entry-level clerical work remained weak, but demand for HR professionals and manufacturing workers edged up. One contact noted that the labor market in Texas is doing much better than in other parts of the country.
Demand for legal services continued to grow moderately, with most of the growth concentrated in litigation and bankruptcy. With the exception of continued strength in oil and gas, legal services to support transactions have declined. Demand for accounting services remained modest.
Trucking companies reported reduced shipping volumes in the last month. Import volumes have declined and are not being completely offset by exports. Record fuel prices, along with price increases in almost every area of operations are having a major impact on the industry. Railroad cargo volumes have been steady over the last 30 days. Rail shipments of residential construction materials continued on a downward trend and those of nonresidential building materials were only up slightly. Rail shipments of primary forest material--a leading indicator for residential construction-have edged up over the last four weeks. Shipments of motor vehicles fell sharply.
Airline demand has not changed much since the last survey. In response to rising jet fuel prices, airlines are reducing capacity, laying-off workers, and increasing fares.
Construction and Real EstateHomebuilders said that traffic and sales weakened fairly significantly in June, following weak but steady demand earlier in the spring. As a result, the pace of single-family building activity has declined at a rapid pace. Contacts said a number of factors--such as a weak stock market and higher gasoline and food prices--have weakened demand. On a more positive note, inventories of unsold homes continued to decline, especially at the lower end, and prices were holding up. There was some concern, however, about the large inventory of vacant lots and reduced funds for real estate lending.
Respondents say that nonresidential construction activity is beginning to slow and there are signs that activity may decline further. Commercial real estate respondents noted a continued decline in investment deals getting done, particularly for larger projects. There were reports of a general drying up of liquidity in the market and a flight of capital out of real estate. On the upside, higher quality assets did not see a major deterioration in value. Industrial and office leasing continued to weaken.
Financial ServicesFinancial services contacts reported that although there has been no significant decline in credit quality, they expect deterioration in coming months. In particular, the quality of mortgage and consumer loans is a concern as home prices soften and consumer budgets are strained. Contacts say that the increased cost of capital has induced them to widen loan interest rate spreads and to tighten non price terms of credit. Competition for deposits is very tough, and lenders are turning to other sources of liquidity. Commercial lending activity remains fairly solid.
EnergyRising energy prices have pushed oil and natural gas drilling sharply higher in recent months. Land-based drilling directed to unconventional sources of natural gas has seen the largest gains. Drilling companies are adding jobs but report having difficulty finding workers with the skills they need.
AgricultureRecent rains have provided some relief in most parts of the District suffering from drought-like conditions. Crop prices continue to be favorable and are helping offset high fuel, fertilizer and other production expenses to some degree. High feed costs and low hay and corn feed supplies have weakened prices for stocker cattle and are hurting livestock producers.
Call Peter Wu 214-682-8888 or Linda 469-569-0567
or Judi Rock (702) 577-7112 www.ok8888.com
for your Real Estate Needs in Dallas, Texas or Las Vegas, Nevada.
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