Hello,

Recently, my family and I had the chance to teach business training in Zimbabwe—to individuals who face extraordinary business challenges each day.

I came to teach.  But I discovered I had much to learn from these remarkable entrepreneurs.

Here are three things I learned about business from entrepreneurs thriving in one of the hardest places to do business on earth.

Survival – Mildred

Over a pot of stew, I talked with Mildred, our caterer.

A few years ago, after losing her job, she was unable to pay for her 15-year-old son’s school fees.

But Mildred wasn’t embarrassed to ask for help. Reaching out to a community of women who saved and prayed together, Mildred said they supported her until she was financially stable.

What Mildred taught me about survival:

*   We’re all in this together.

*   When you’re facing challenges, don’t go at it alone.

Success – Terrence

“Why do you charge such a low rate?” I asked my student Terrence in a class on variable and fixed pricing.

A taxi driver, Terrence charged only 50 cents a ride. 50 cents—even in Zimbabwe—seemed low.

Because Terrence had a set route his costs didn’t fluctuate—whether he had five people in his car or two. If he kept prices slightly lower than other taxi drivers, he could have a full car—and higher profits (about $36 a day)!

Though I was instructing, I realized Terrence had a lot to teach me on pricing.

What Terrence taught me about success:

*   When you apply simple business principles, even small profits are multiplied.

Significance – Jane

Jane has the biggest smile. Meeting her, I recognized she was a talented entrepreneur.  Yet she says success isn’t the secret to her happiness.

A few years ago, she and her husband had been laid off: “If you are in poverty, you are like a person caught up in a spider web,” said Jane. “So I was like a person caught up in a spider web.”

Desperate, she joined a savings group that helped her expand a chicken business.  Motivated by faith, she wanted to give back. Mildred buys groceries for her parents. She gave bars of soap to 13 widows. She also volunteers with children at her church.

What Jane taught me about significance:

*   Beyond success, Jane demonstrates joy in giving and serving.

I’m so thankful for the opportunity to learn from incredible individuals like Mildred, Terrence, and Jane. I’m also so thankful for your partnership, the way you give back to your community, and how you do your work with excellence.

Sincerely,

Jeff Rutt

Younger investors jump into housing market

Flipping homes offers a good return — and beats a bad job

At 28, Rob Lananna wants to make real estate investing a full-time gig.

Lananna is part of a group of professionals in their 20s and 30s trying to capitalize on the recovering housing market through buying and reselling homes.

“I really like what I do,” he said. “I like taking something that’s ugly and dirty and turning it into something that’s beautiful.”

Lananna recently completed his first deal, buying a bank-owned home in Boynton Beach, Fla., near Fort Lauderdale, for $68,000, renovating it for $30,000 and reselling it within six months for $135,000.

He bought another house in West Palm Beach, Fla., for $60,000, put in $15,000 of work and listed it for $125,000.

David Dweck, founder of the Boca Real Estate Investment Club, said he’s seeing more young people join the group because of concerns about pursuing traditional careers in a still-lackluster economy.

“The same-old, same-old working 40 hours a week for 40 years is no longer the American Dweck said. “People are starting to realize that real estate investment is viable.”

While rampant investor-led speculation fueled the housing bust of 2006 to 2011, today’s investors take a more cautious approach and add value to the properties before turning around and selling them, Dweck said. He encourages club members to “buy low, sell low” and not pay more than 65 percent of the value of the home after repairs.

But this buy-fix-sell model does require cash in hand, which disqualifies many young investors, Dweck said.

An investor should have enough money to buy the home, renovate it and carry it until it sells. Lananna, an entrepreneur with a background in sales and recycling, recommends having at least $40,000 to $50,000.

Banks typically won’t lend money to investors looking to flip homes, so club members often turn to one of Dweck’s companies to provide financing. It offers short-term loans to investors, who make monthly payments and pay off the

balances when the homes sell.

Mike Benton, 34, recently bought a house in Pompano Beach, Fla., for $165,000. After $35,000 in renovations, he sold it for $249,000. He said he and his business partner split about $22,000 profit.

Benton said they also bought and resold a MargateMargate, Fla., house, netting about $12,000.

“I’m putting in surround sound, tiki huts — something that will stand out to clients,” Benton said.

One of the biggest challenges in today’s market is finding homes to buy amid a lack of inventory and strong competition from large investment companies. Individual investors bid at online foreclosure auctions and also use relationships with real estate agents and other industry professionals to find properties for sale.

“In a seller’s market, there’s only so many ways to acquire homes,” Benton said. “If we bid on 10 houses, we may get one.”

Lananna said he spends about 15 hours a week looking at properties to buy.

“I just try to be the first one out there and beat everyone to the punch,” he said. “I’d like to think (the investment firms) don’t have the same hunger and desire as I do because it’s not their own money.”
Article posted on: Younger investors jump into housing market – The Denver Post http://www.denverpost.com/smart/ci_22750434/younger-investors-jump-into-housing#ixzz2NS0h5ef3
Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Follow up to 13 Tips for Buying a Home.

13 Tips for Selling Your Home

If you’re on the selling side of today’s real estate market, these tips will help you sell your house, stat!

We’ve all heard about how “bad” the real estate market is. But what’s bad for sellers can be good for buyers, and these days, savvy buyers are out in spades trying to take advantage of the buyer’s market. Here are 13 thing you can do to help sell your house.

1. Audit your agent’s online marketing. 92% of homebuyers start their house hunt online, and they will never even get in the car to come see your home if the online listings aren’t compelling. In real estate, compelling means pictures! A study by Trulia.com shows that listings with more than 6 pictures are twice as likely to be viewed by buyers as listings that had fewer than 6 pictures.

2. Post a video love letter about your home on YouTube. Get a $125 FlipCam and walk through your home AND your neighborhood, telling prospective buyers about the best bits – what your family loved about the house, your favorite bakery or coffee shop that you frequented on Saturday mornings, etc. Buyers like to know that a home was well-loved, and it helps them visualize living a great life there, too.

Plus: 13 Moving Tips to Keep in Mind

3. Let your neighbors choose their neighbors. If you belong to neighborhood online message boards or email lists, send a link to your home’s online listing to your neighbors. Also, invite your neighbors to your open house – turn it into a block party. That creates opportunities for your neighbors to sell the neighborhood to prospective buyers and for your neighbors to invite house hunters they know who have always wanted to live in the area.

4. Facebook your home’s listing. Facebook is the great connector of people these days. If you have 200 friends and they each have 200 friends, imagine the power of that network in getting the word out about your house!

5. Leave some good stuff behind. We’ve all heard about closing cost credits, but those are almost so common now that buyers expect them – they don’t really distinguish your house from any of the other homes on the market anymore. What can distinguish your home is leaving behind some of your personal property, ideally items that are above and beyond what the average homebuyer in your home’s price range would be able to afford. That may be stainless steel kitchen appliances or a plasma screen TV, or it might be a golf cart if your home is on a golf course.

6. Beat the competition with condition. In many markets, much of the competition is low-priced foreclosures and short sales. As an individual homeowner, the way you can compete is on condition. Consider having a termite inspection in advance of listing your home, and get as many of the repairs done as you can – it’s a major selling point to be able to advertise a very low or non-existent pest repair bill. Also, make sure that the little nicks and scratches, doorknobs that don’t work, and wonky handles are all repaired before you start showing your home.

Plus: 5 Easy Improvements to Hook a Buyer For Your Home

7. Stage the exterior of your home too. Stage the exterior with fresh paint, immaculate landscaping and even outdoor furniture to set up a Sunday brunch on the deck vignette. Buyers often fantasize about enjoying their backyards by entertaining and spending time outside.

8. Access is essential. Homes that don’t get shown don’t get sold. And many foreclosures and short sale listings are vacant, so they can be shown anytime. Don’t make it difficult for agents to get their clients into your home – if they have to make appointments way in advance, or can only show it during a very restrictive time frame, they will likely just cross your place off the list and go show the places that are easy to get into.

9. Get real about pricing. Today’s buyers are very educated about the comparable sales in the area, which heavily influence the fair market value of your home. And they also know that they’re in the driver’s seat. To make your home competitive, have your broker or agent get you the sales prices of the three most similar homes that have sold in your area in the last month or so, then try to go 10-15% below that when you set your home’s list price. The homes that look like a great deal are the ones that get the most visits from buyers and, on occasion even receive multiple offers. (Bidding wars do still exist!)

10. Get clued into your competition. Work with your broker or agent to get educated about the price, type of sale and condition of the other homes your home is up against. Attend some open houses in your area and do a real estate reality check: know that buyers that see your home will see those homes, too – make sure the real-time comparison will come out in your home’s favor by ensuring the condition of your home is up to par.

11. De-personalize. Do this – pretend you’re moving out. Take all the things that make your home “your” personal sanctuary (e.g., family photos, religious décor and kitschy memorabilia), pack them up and put them in storage. Buyers want to visualize your house being their house – and it’s difficult for them to do that with all your personal items marking the territory as yours.

12. De-clutter. Keep the faux-moving in motion. Pack up all your tchotchkes, anything that is sitting on top of a countertop, table or other flat surfaces. Anything that you haven’t used in at least a year? That goes, too. Give away what you can, throw away as much as possible of what remains, and then pack the rest to get it ready to move.

13. Listen to your agent. If you find an experienced real estate agent to list your home, who has a successful track record of selling homes in your area, listen to their recommendations! Find an agent you trust and follow their advice as often as you can.

Article posted on http://www.rd.com/home/improvement/13-tips-for-selling-your-home/

Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Hi everyone, this is Jeff Rutt. As we embark into the beginning of 2013, many people are looking for ways to make their money work for them.  Making your money work for you is not only a priority in business for most individuals; it is also a priority in charity. In tough economic times, every dollar counts, and many people want to be sure that the money they give is making the greatest impact. Enter impact investing, the way to get the most bang for your charitable buck. At HOPE that is exactly what we seek to do, to make the greatest impact we can in the lives of others with the money that you entrust us with. In the world of microfinance we have learned a few lessons over the years of how to do just that. I hope you will enjoy the article below about some of the lessons microfinance has learned over the years and what lessons lay ahead for impact investment.

Many blessings,

Jeff Rutt

Lessons Impact Investing Can Learn From Microfinance

While the underlying approaches are older, the term impact investing has recently created new buzz and attracted a growing followership. I’m very excited about this. It seems to indicate that more people have come to a conclusion that I share after 20+ years of privileged insights into motives and decision making across public, private, and social sector entities: Combining a higher-order purpose with the discipline of private sector financial sustainability has the best shot at solving many of today’s pressing societal challenges.

As I’m following the reporting and publications on this space, there are two related issues that I’m struggling with and that I fear, if not thoughtfully addressed, might ultimately harm the positive brand emerging for impact investing. The field can benefit from some of the hard-learned lessons from the three decade-old experience of investments in microfinance institutions, which in 2012 constituted still by far the largest share of impact investing — estimated to be one third of total new commitments and two thirds of outstanding total in developing countries.

My first issue has to do with return measurement. I get the financial return part. Any entity that operates under market principles must create a valuable offering to, and get paid by, its customers in the consumer market; it pays its suppliers in the product market and its employees including management in the labor market; the excess of revenues over expenses is profit, which the enterprise can choose to reinvest or dividend out. Whatever you think ideologically — and of course there are also market imperfections and information asymmetries — financial returns on debt or equity investments (or total shareholder returns in the case of publicly-quoted companies) are measures conceptually consistent with a broader market economy paradigm and a summary indication that value has been created.

Social and environmental impact returns are qualitatively different and essentially in the eye of the beholder. In the early years, investors in microfinance institutions thought that simply reaching disadvantaged segments such as women and poor people was a sufficient indicator of impact. Only later did they start realizing that financial access did not automatically mean improving people’s lives, and that at the minimum client protection principles, if not social performance objectives , needed to be in place. More recently, rigorous impact assessments have helped the field understand what type of financial access is beneficial to what type of customer segment and why, which in turn is leading to better product design and offerings.

The efforts that the impact investment community is pushing with respect to impact indicators in other areas such as education need to learn from this evolution. To use an analogy, for example, it’s not enough to just count heads of kids in social and private sector elementary schools in developing countries; investors through their governance influence need to also ensure that the education the kids get is truly a good investment for the typically poor families who make real long-term sacrifices to pay school fees.

The second issue is on return expectations. In a recent JPM/GIIN survey, 65 percent of impact investors said that they seek market return for their financial investment. This investor segment I find less inspiring. Wouldn’t anyone want to have market returns and social returns on top for good measure? Or, from market development perspective, if market returns were available, wouldn’t plentiful commercial capital flow in anyhow?

The microfinance investment community demonstrated that philanthropic capital was necessary to prove a concept and attract new sources of capital and talent to an area where no market existed before. Microfinance investors also learned that you can’t conceptualize away potential tradeoffs between social impact and financial returns pointing to the long-term. They have come around to ask themselves questions such as: how do we find the right entrepreneurs with whom we durably share impact and financial objectives at the outset? Once invested and on boards, how do we set and don’t set growth targets? How do we incentivize for a profitability sweet spot — not too little to jeopardize financial viability, but not too high to tempt management to take short cuts? How do we responsibly exit and to whom so that the impact objective remains preserved?

The microfinance community learned some important answers the hard way and is still learning. The broader, emerging impact investment community can only benefit from these lessons.

Article posted on http://www.huffingtonpost.com/tilman-ehrbeck/lessons-impact-investing-_b_2569243.html

Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Hi everyone, Jeff Rutt here.  As we all know 2012 turned out to be a good year for the housing industry and it looks as though things could continue to stay positive through 2013. According to the report below, overall home sales are at their highest rates since before the recession. More home sales means more competition and higher home sale prices for sellers. This is excellent news for builders or individuals looking to sell their existing homes. I hope you will enjoy reading the article below.

Many Blessings,
Jeff Rutt

Hey everyone this is Jeff Rutt.  As February will soon turn to March, many people are looking forward to spring and new beginnings in their lives.  After spending many snowy winter days indoors you may soon decide that the new beginning you need in your life is a new home.   With that in mind, I wanted to share this article on 13 tips for buying a new home in 2013.  If you are on the search for a new home I hope you will find this article both inspiring and helpful.

Many blessings,

Jeff Rutt

13 home buying tips for 2013

Play CBS News Video

(MoneyWatch) Although housing prices started to rebound last year and are expected to continue rising in 2013, it’s still a buyer’s market. Prices remain 30 percent below their peak before the housing crash and mortgage rates hovering at all-time lows. If you are ready to jump in to the real estate market, here are 13 house-hunting tips for 2013.

1. Run the numbers. Put together a financial plan to determine whether you can really afford to buy. After all, just because it’s a good time to purchase a home doesn’t mean it’s a good time for YOU to buy. It’s important to understand how much home you can afford and whether home ownership might preclude you from addressing other important financial issues in your life.

2. Save 20 percent for a down payment. I’m not a huge fan of putting down less than that amount (although the Federal Housing Administration allows it). Keep your downpayment fund in cash or cash equivalent accounts, so that market movements don’t thwart your plans.

3. Use this great “rent vs. buy” calculator from the New York Times. Renting might still be the better deal in your area.

4. Be an informed buyer. You’re not going to buy a house simply because there’s a pretty photo posted online, but you can conduct a lot of price research. That said, there’s nothing better than talking to people in the neighborhood for “on the ground” intelligence.

5. Obtain a copy of your credit report. If you haven’t done so in a while, go to AnnualCreditReport.com and request your free copy. It’s important that you correct any errors on the report before you start the mortgage process.

6. Get pre-approved for a mortgage. Pre-approval is a good gut check on your price range for a home. Gone are the days that banks will fork over cash to anyone with a heartbeat. The best way to start is to ask friends for referrals from mortgage brokers and to shop around with banks and credit unions. Make sure to compare apples to apples and to ask the broker about your total costs to you at closing. You should also know that once you actually find a home, the mortgage process is on the same pain level as a root canal, only it requires more patience and there’s no Novocain. You’ll need to dig up tons of paperwork and fair warning — there will be multiple requests for even more documents as you move toward closing. Eventually, you will need “commitment letter,” which details the terms of your loan approval.

7. Find an agent. As much as everyone complains about realtors, I still think that it’s tough to go through the home buying process alone. In some markets, buyers’ brokers are available, but the most important qualities in brokers are honesty, experience, good connections with other agents, and good referrals from buyers like you. Remember that most agents represent the seller, not the buyer.

8. Hire a real estate attorney. This is a major transaction in your life, so don’t try to save money when it comes to legal fees. Even if your mortgage company provides a lawyer, hire your own to help draft all documents and to ensure that your interests are being represented at every step of the process.

9. Get an appraisal. An appraisal will determine the market value of the property and ultimately will be used by your lender to determine the amount of your loan. You have a legal right to get a copy of this and will want a copy for your records.

10. Schedule a home inspection. Think you’ve found your dream house? Maybe, but unless you have an engineer walk through the premises with you, you might be buying a new roof in a couple of years. Don’t get freaked out if a problem arises during the inspection; it can often be addressed with a simple adjustment in price. It’s imperative to protect yourself, so don’t blow off this important step.

11. Start with a fair offer. The offer should be based on similar houses sold in the neighborhood in the past six months. Your agent will help you with the process, but the offer should include the price you’re willing to pay for the house, your financing terms and contingencies such as specifying what will happen if any problems come up during the inspection.

12. Purchase homeowners insurance. If you are a life-long renter, this can be an eye-opener in terms of cost. Make sure that you understand the difference between insuring the structure and insuring the contents. And if you are buying property that is close to water, make sure that you have an agent who can help you enroll in the national flood insurance program.

13. Review your HUD statement BEFORE closing. The government document provides basic details about the involved parties and a lot of numbers. Mistakes do occur, which is why it is vital that you review the statement and confirm that everything is correct.

Article posted on http://www.cbsnews.com/8301-505145_162-57564301/13-home-buying-tips-for-2013/

Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Hi Everyone, Jeff Rutt here. If you have been watching the news at all recently, it is likely that you have seen a great deal of coverage regarding hurricane Isaac and its path of destruction. Like many people involved in international missions, one of my biggest concerns regarding Isaac was what impact it would have on the Dominican Republic and Haiti. Both countries suffer from severe poverty, and Haiti as we all know is still in the process of rebuilding from the 2009 earthquake. It is sad to see that some lost their lives as a result of this storm and our prayers go out to their friends and families. However, we can be thankful that the damage was not nearly as severe as it could have been. I am thankful that through HOPE we can offer some assistance to the people of the Dominican Republic and Haiti in their time of need, allowing them to begin to rebuild their lives. If you would like to be a part of the solution and reach out to the people of the Dominican Republic and Haiti in their time of need, please consider giving towards a loan for someone in one of these areas. For more information on how to get started helping please visit HOPES website at www.hopeinternational.org

Many Blessings,
Jeff Rutt

Isaac Kills 24 in Haiti, 5 in Dominican Republic En Route to US

Hurricane Isaac left a path of death and destruction as it ripped through Haiti and the Dominican Republic.

PORT-AU-PRINCE, Haiti – The Haitian government said that accidents related to Hurricane Isaac have left at least 24 people dead, with five people dead in the neighboring Dominican Republic.

Haiti’s Civil Protection Office said in a report Tuesday that the bulk of the deaths happened in the southeastern and western departments of the country.

Some of the victims were electrocuted and others died after objects fell on them. Three people are missing.

The death toll has steadily increased in Haiti after Tropical Storm Isaac passed over the southern part of the country Saturday and caused extensive flooding.

Haiti’s mountains are heavily deforested and so the country is prone to mudslides that sometimes turn fatal.

The new deaths put the total death toll of Isaac at 29.

Hurricane Isaac was gaining strength Monday as it headed toward the Gulf Coast. The next 24 hours would determine whether it brought the usual punishing rains and winds — or something even more destructive harkening back to the devastation wrought seven years ago by Hurricane Katrina.

The focus in the U.S. has been on New Orleans as Isaac takes dead aim at the city, but the impact will be felt well beyond the city limits. The storm’s winds could be felt more than 200 miles from the storm’s center.

The Gulf Coast region has been saturated thanks to a wet summer, and some officials have worried more rain could make it easy for trees and power lines to fall over in the wet ground. Too much water also could flood crops, and wind could topple plants such as corn and cotton.

“A large, slow-moving system is going to pose a lot of problems: winds, flooding, storm surge and even potentially down the road river flooding,” said Richard Knabb, director of the National Hurricane Center in Miami. “That could happen for days after the event.”

SUMMARY

Forecasters predicted Isaac would intensify into a Category 2 hurricane, with winds of about 100 mph, by early Wednesday around the time it’s expected to make landfall. The current forecast track has the storm aimed at New Orleans, but hurricane warnings extended across 280 miles from Morgan City, La., to the Florida-Alabama state line. It could become the first hurricane to hit the Gulf Coast since 2008.

The storm’s potential for destruction was not lost on Alabama farmer Bert Driskell, who raises peanuts, cotton, wheat, cattle and sod on several thousand acres near Grand Bay, in Mobile County.

“We don’t need a lot of water this close to harvest,” Driskell said.

However, Isaac could bring some relief to places farther inland where farmers have struggled with drought. It also may help replenish a Mississippi River that has at times been so low that barge traffic is halted so engineers can scrape the bottom to deepen it.

Forecasters predicted Isaac would intensify into a Category 2 hurricane, with winds of about 100 mph, by early Wednesday around the time it’s expected to make landfall. The current forecast track has the storm aimed at New Orleans, but hurricane warnings extended across 280 miles from Morgan City, La., to the Florida-Alabama state line. It could become the first hurricane to hit the Gulf Coast since 2008.

At 2 a.m. EDT Tuesday, the large, lumbering storm was centered about 145 miles southeast of the mouth of the Mississippi River. The National Hurricane Center in Miami said Isaac’s top sustained winds remained at about 70 mph and it was moving northwest across the Gulf at 12 mph.

The hurricane center said Isaac was expected to become a hurricane on Tuesday and continue gaining strength before it roars ashore.

Evacuations were ordered for some low-lying areas and across the region, people boarded up homes, stocked up on supplies and got ready for the storm. Schools, universities and businesses closed in many places.

Still, all the preparation may not matter if flooding becomes the greatest threat. In Pascagoula, Miss., Nannette Clark was supervising a work crew installing wood coverings over windows of her more than 130-year-old home. But she said all that won’t matter if a storm surge reaches her home, as it did after Katrina in 2005.

“The water was up to the first landing of the stairs,” she said. “So I get very nervous about it.”

Isaac’s approach on the eve of the Katrina anniversary invited obvious comparisons, but Isaac is nowhere near as powerful as the Katrina was when it struck on Aug. 29, 2005. Katrina at one point reached Category 5 status with winds of over 157 mph. It made landfall as a Category 3 storm and created a huge storm surge.

Federal Emergency Management Agency officials said the updated levees around New Orleans are equipped to handle storms stronger than Isaac. Levee failures led to the catastrophic flooding in the area after Katrina.

“It’s a much more robust system than what it was when Katrina came ashore,” said FEMA Administrator Craig Fugate in a conference call with reporters.

In New Orleans, officials had no plans to order evacuations and instead told residents to hunker down and make do with the supplies they had.

“It’s going to be all right,” said New Orleans Mayor Mitch Landrieu.

Isaac could pack a watery double punch for the Gulf Coast. If it hits during high tide, Isaac could push floodwaters as deep as 12 feet onto shore in Louisiana, Mississippi and Alabama and up to 6 feet in the Florida Panhandle, while dumping up to 18 inches of rain over the region, the National Weather Service warned.

The storm’s center was forecast to move over the central Gulf of Mexico early Tuesday and approach the coast of southeastern Louisiana and Mississippi on Tuesday afternoon or Tuesday night, the Hurricane Center said.

On the Alabama coast, Billy Cannon, 72, was preparing to evacuate with several cars packed with family and four Chihuahuas from a home on a peninsula in Gulf Shores. Cannon, who has lived on the coast for 30 years, said he thinks the order to evacuate Monday was premature.

“If it comes in, it’s just going to be a big rain storm. I think they overreacted, but I understand where they’re coming from. It’s safety,” he said.

The storm left 24 dead in Haiti and the Dominican Republic, but left little damage in the Florida Keys as it blew past. It promised a soaking but little more for Tampa, where the planned Monday start of the Republican National Convention was pushed back because of the storm.

Only a fraction of an expected 5,000 demonstrators turned out in Tampa to protest GOP economic and social policies outside the convention. Organizers blamed Isaac and a massive police presence for their weak showing.

The storm had lingering effects for much of Florida, including heavy rains and isolated flooding in Miami and points north. Gov. Rick Scott said that as of Monday evening, about 80,000 customers were without power in Florida as a result of the storm.

Scott, a Republican, was returning from the convention in Tampa to Tallahassee to monitor Isaac. Fellow Gulf Coast Republican Govs. Bobby Jindal of Louisiana and Robert Bentley of Alabama said they would not attend the convention at all. Mississippi Gov. Phil Bryant delayed his travel through Wednesday, leaving open the possibility he could attend the final day of the event.

States of emergency were in effect in Louisiana, Mississippi, Alabama and Florida.
posted on http://latino.foxnews.com/latino/news/2012/08/28/isaac-kills-24-in-haiti-5-in-dominican-republic-en-route-to-us/

Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Hi everyone, this is Jeff Rutt.  With great interest rates and low housing prices, now is a great time to purchase a new home.  Buying a home can be a fun process, but it can also be overwhelming and confusing at times.  A home purchase is a major investment and must be made with caution. Below are some helpful tips on common mistakes that many people make when buying their first home.  If you’re looking for a home, I hope you enjoy the process, but make sure you do your homework in order to make a wise investment.

Many Blessings,
Jeff Rutt

Buying your first place is a big deal, and it involves a lot more than signing a contract. Here are five common mistakes made by first-time home buyers that can be easily avoided by  taking the right precautions.

1. Not checking your credit beforehand

Get approved for a loan before you start looking at properties so you don’t set unrealistic expectations and eventual disappointment, says Andrew Thorne, an agent at Coldwell Banker Residential Brokerage in San Diego.

When it comes time to apply for a mortgage loan, some first-time home buyers may find themselves scrambling to fix their credit, says Kim-Marie Mullin, an associate broker and the vice president of Better Homes and Gardens Real Estate Tech Valley. Damaged credit can in turn harm your credit score, which could negatively affect your mortgage payments.

Also avoid buying a large-ticket item (like a car) after you start the home purchasing process, Thorne says. Get your lender to help you repair your credit.

2. Forgoing a home inspection

Intense bidding wars may tempt some potential home buyers to skip the home inspection so that they can seal the deal, says Christian Dunn, of Cummings & Co. Realtors in Maryland.

“Possibly the most important part of the home buying transaction, certainly after the contract has been signed, is the home inspection,” he says.

Another reason a home buyer may skip the inspection is to save some money, Mullin says.

“This may save them a few bucks in the short term, but what happens when they find out one month after the closing that their house in infested with termites?” she says. “It’s just plain foolish not to have a professional come in and check everything from leaky faucets to radon levels.”

Dunn stresses the importance of not only getting a home inspection, but of finding a good home inspector to do it for you. Speak with a few of the past clients of the inspector that your real estate agent recommends.

3. Enlist the wrong agent

Thorne says that using the seller’s agent to represent the buyer is not a smart move for a potential home buyer.

“There is a conflict of interests when the buyer uses the seller’s agent, whose primary goal it is to achieve the highest price for the property,” he says.

4. Bargain-hunting

Mullin says potential home buyers who only want short sales and foreclosures because they are looking for a bargain are making a “big mistake.”

“They don’t realize that although it is priced well under market value, the amount of money that it would cost them to repair the damage could be staggering,” she says. “Also, by focusing solely on short sales and foreclosures, they miss out on the real bargains.”

5. Overlooking the neighborhood

Safety and crime rates are major concerns for home seekers, and, in a city like Baltimore, the quality of life can change in a matter of two or three blocks, Dunn says.

“It is better to give up the granite counters and a couple hundred of square feet and enjoy your neighbors and area amenities than it is to have a showcase home in a place that makes you feel anxious,” he says.

Neighborhoods can have different characteristics at different times of the day, so make sure you visit a few times at various hours. If you are a light sleeper, you don’t want to get stuck with a house in an area that comes alive with noise and activity at night.

Thanks again for reading, stay tuned for more articles and comments-Jeff Rutt

Posted On http://www.foxnews.com/leisure/2012/07/01/buying-new-home-dont-make-these-5-common-mistakes/

Hi everyone this is Jeff Rutt. This week mortgage rates hit another all time low which has investors, homebuyers and financial analysts wondering how long the trend of lower interest rates will continue. According to the article below the recent drop is a result of the financial instability of the European markets which is causing investors to turn to US investments. In spite of the concern over the European financial market, lower interest rates can be a benefit to everyone in the housing market. For homebuyers who are sitting on the fence, its best to take advantage of these low rates now, as the future of interest rates is uncertain.

Many Blessings,
Jeff Rutt

How Low Can They Go? Mortgage Rates Fall (Again)

Michelle Ruiz and Nilson Ruiz listen as Wells Fargo home mortgage consultant, Michael Carreras, helps the potential homeowners with their an application for a down payment assistant grant at the Miami Airport Convention Center in Miami, Fla.

Defying logic, mortgage rates sunk to new lows this week on news that the U.S. and global economy could be slowing down more than economists originally anticipated.

Interest rates on 30-year fixed-rate mortgages averaged 3.66 percent, Freddie Mac reported Thursday, falling from a 3.71 percent average last week. Borrowers opting for a 30-year fixed-rate mortgage this time last year were stuck with a (comparatively) sky-high interest rate of 4.5 percent.

“Mortgage rates are reaching record lows based on overall uncertainty in Europe,” says Doug Lebda, CEO of LendingTree.com.

That uncertainty has spooked investors causing a rush into the perceived safe-haven of U.S. treasuries, which drives down yields. Because mortgage rates are pegged to the 10-year U.S. treasury, when yields fall on treasuries, mortgage rates retreat as well, Lebda says.

Freddie Mac vice president and chief economist Frank Nothaft blamed worsening economic data for the continued retreat of mortgage rates. Measures of industrial production fell in two of the past three months, disappointing forecasters who predicted stronger output. Meanwhile consumer sentiment registered its lowest level this year, according to a University of Michigan survey, signaling increased anxiety among Americans about the outlook for the economy.

Slowing job creation and anemic consumer spending also concerned economists, in part prompting the Federal Reserve to maintain its policy of keeping interest rates low.

Still, there are some bright spots for the housing market amid the gloomy data bringing mortgage rates down. Construction activity, a sector that has historically fueled economic recoveries, seems to be gaining a foothold after being all but absent following the housing bust. Confidence among builders has followed suit, rising to its highest reading in more than five years.

The overarching question for the mortgage market going forward isn’t how much lower rates can go, Lebda says, but who will be able to obtain a mortgage. Despite record low rates, it’s still very difficult to get through the mortgage application process and get approved.

“Underwriting standards remain stricter,” he says. “There’s still a more risk-averse attitude on [the part] of the lender.”

Thanks again for reading stay tuned for more articles and comments-Jeff Rutt

Posted on http://www.usnews.com/news/blogs/home-front/2012/06/21/how-low-can-they-go-mortgage-rates-fall-again

Hi everyone, this is Jeff Rutt with some great news. Have you been considering the purchase of a new home recently? Perhaps your family has outgrown your current home, or you are ready to take the step from renter to homebuyer. If so, 2012 may be the year to take action and buy the home of your dreams. According to this article in Business Insider, home mortgage rates are set to be at an all-time low this year. I hope you take a few moments to check out a few reasons why this year may be the one to become a homeowner.

Many Blessings,

Jeff Rutt

Want A New Mortgage? This Might Be The Month To Get One

Mortgage interest rates are near all-time lows and are likely to remain attractive throughout 2012.

That means the new year will continue to offer good opportunities for homebuyers who need a new mortgage and homeowners who want to refinance an existing obligation.

With that opportunity in mind, here are five reasons why you might want to get a new mortgage this year, and what you should know about the benefits and hurdles of accomplishing this goal.

Buying a personal residence

Economic uncertainty and volatile housing markets have kept so many homebuyers on the sidelines that mortgage purchase applications have dropped to a 15-year low in August, according to the Mortgage Bankers Association.

The lack of applications doesn’t mean buying a home is a bad idea. In fact, quite the opposite is true, as depressed house prices and low mortgage rates have made homes more affordable.

The benefits of owning a home include federal income tax deductions and the satisfaction of not paying rent to a landlord, says Justin Lopatin, vice president of residential banking at Baytree National Bank & Trust in Chicago.

“The money you pay on your mortgage may be slightly higher,” he says, “but at the end of the year, you get the mortgage interest write-off, so you get money back — and you get to own your own property.”

The slow pipeline of new applications can be blamed on the hurdles that buyers face in qualifying for loans. Chief among the challenges are a down payment and the ability to document at least two years of income, Lopatin says. Income documentation can be hard for people who’ve suffered temporary unemployment, are self-employed or have irregular wages.

Buying rental property

Many investors pay cash to purchase residential rental properties. But some take out a mortgage to increase their leverage, says Julie Miller, sales manager at Prospect Mortgage in Irvine, Calif. The benefit is that the investor who holds cash while financing real property can use the cash to make other investments.

Lopatin says low interest rates are also an inducement for investment property buyers.

“If you can take out an investment loan at 4.5 percent and rent out (the property) and make a few dollars a month, annually, the return will be worth the loan,” he says. “Not to mention the tax write-offs and other advantages of owning real estate.”

Mortgage insurance isn’t an option for investment property, so a fat down payment, typically 20 percent or more, is a must.

Investment buyers also need to show that they have enough income and reserves to afford the payments even if the tenant fails to pay the rent or moves out. Lenders typically will count 75 percent of the rent toward the borrower’s income-qualifying ratios, Lopatin says. For example, a monthly rent of $1,000 would count as $750 of income.

Refinancing to get a better rate

Low rates can make rate-and-term refinancing a smart financial move. This type of new loan is exactly what the name implies: a refinance in which the interest rate or term is changed, but the loan amount stays the same.

The chief benefit, Lopatin says, is “reducing your monthly overhead, restructuring your loan to obtain a lower payment.”

Another benefit might be locking in a fixed interest rate instead of an adjustable rate that can rise if market rates go up.

Homeowners who want to refinance must provide income documentation and have a “decent” credit score, to use Miller’s characterization.

Equity is also required for most, though not all, loan refinance programs. This hurdle can be troublesome because homeowners don’t control the market value of their property, Lopatin says.

If your loan amount exceeds the value of your home, consider the Home Affordable Refinance Program, or HARP, which is part of the federal government’s Making Home Affordable initiative. If your loan is insured by the Federal Housing Administration, or FHA, the FHA Short Refi program might enable you to refinance in a negative equity position.

Refinancing to cash out

A home equity loan or line of credit can be a good way to get cash for a variety of financial needs such as remodeling, major home repairs, paying off other debts or financing a college education.

The benefits, Lopatin says, include immediate cash, low-cost debt and potentially an income tax write-off.

Of course, there’s a catch: You can’t borrow against your equity if your mortgage debt exceeds your home’s value.

“They have to be able to income-qualify for the increased loan amount, and the cash-out limit (means) they have to have a bigger equity cushion than a rate-and-term refinance,” she says.

And along with the catch is a caveat: taking out cash isn’t free money. In fact, a cash-out refinance increases your debt, which is “just not wise today,” says Alfred McIntosh, principal of McIntosh Capital Advisors, a financial planning and investment management firm in Los Angeles.

“Part of the reason we’re in this economic situation is that, for a long time, we used our homes as checking accounts,” he says. “We need to break the cycle of constantly inflating our mortgages.”

Helping a family member buy a home

Co-signing a loan to help a family member buy a home might sound like a feel-good proposition. But those warm fuzzies are the only benefit that co-signing a loan offers.

From a purely financial point of view, co-signing someone else’s debt is a bad bargain.

“I see no reason why anyone should co-sign on anything for anyone, unless it’s a relative, because you’re putting yourself in a position to jeopardize your credit,” Lopatin says. “I don’t recommend it, unless there are extenuating circumstances.”

Miller also says being a co-signer involves “more negatives than positives” because the co-signer is equally responsible for the loan. If the borrower fails to make the payments, the co-signer is on the hook.
http://www.businessinsider.com/this-might-be-a-good-time-to-get-a-new-mortgage-2012-1

Thanks again for reading, stay tuned for more articles and comments

-Jeff Rutt

Hi everyone, this is Jeff Rutt with a story I hope you’ll find engaging. Written by Hope Moses-Ashike for Businessday Online and later posted on microfinanceafrica.net, the article focuses on managing debt in Nigeria. While it’s fairly technical and complicated, it’s a great window into the inherent opportunities microfinance offers, particularly when pursued from a disciplined and Christ-centered perspective. Have a great day,

Many blessings, Jeff Rutt

Nigeria: MFBs want CBN to raise firm for bad debt

Bad debt is inevitable in any business, especially in microfinance banking that serves greater number of the uninformed populace.

In this regard, putting in place risk management measures that will ensure that bad debts do not disrupt business operations is very important.

Microfinance banks across the country are faced with the challenge of bad debt which calls for urgent attention stakeholders.

In order to find solution to this problem, the National Association of Microfinance (NAMB) Lagos State chapter, has called on the Central Bank of Nigeria (CBN) to set up companies that can buy up its bad debts.

The Federal Government, through the CBN, last year set up Asset Management Corporation of Nigeria (AMCON), as a special purpose vehicle to manage toxic assets or bad and non-performing loans of the rescued commercial banks.

Operators of microfinance banks also want the regulatory authorities to replicate this in the sub-sector.

Chatting the way forward for microfinance banks, Olufemi Babajide, chairman, NAMB, Lagos Chapter who spoke in an exclusive interview with BusinessDay in Lagos, said the CBN should help microfinance banks set up something in line with the AMCON that will buy their bad debt.

“We need a company that can buy up our debt. So, the CBN should help us set something like AMCON. You know, the big banks, their loans are collaterise, so they are able to sell all these loans to AMCON. In our own case, they are not (collaterised). So, all they can do for us is to buy them up and then give us liquidity so that we can repay over a period of time. Bad debt is a must in this industry and we must put in place structures that will make sure that the bad debt does not hinder our operations. If they buy them up, we will repay over a period of time with interest and we will now use the fund for other businesses, from the businesses we will be able to pay interest and the principal over a period of time. That is what we need next now. These are structures that will ensure that we have a sustainable sub-sector,” Babajide said.

He stated Nigeria is unlike the Asian countries where a dead person is not buried until the relatives pay whatever debt he/she owed while alive. “We do not have that type of practice here. What we need is a company that can buy all the debts of microfinance banks, give them money and they will repay over a period of time,” he stated.

Babajide further explained that the CBN invited memoranda from operators and those from Lagos State sent in a detailed one in that respect. “So we believe they are working on it,” he said.

The NAMB chairman also said that microfinance banks need special court that can try customers that refuse to pay their debts. This, according to him, will ensure they deliver the desired services to their customers.

Ik Awa, managing director, Good Neighbour Microfinance Bank Limited Lagos, said recently in an interview with BusinessDay that the moment an institution is getting into lending, it is getting into a great risk, because one way or the other some of the loans might not come back, even collatarised loan can go bad.

“So, I would not say we do not have some non-performing loans, we do have but it is not outrageous. We try as much as possible to manage our credit so that we do not incur so much non-performing loans”.

Speaking on the issue of bad loan, he said: “When a loan becomes bad, it means it is bad, but it does not preclude you from making up or applying all the necessary tools you need to apply to get back the loan. But when it becomes impossible to collect, you can at times right off.”

http://microfinanceafrica.net/news/nigeria-mfbs-want-cbn-to-raise-firm-for-bad-debt/

Thanks again for reading, stay tuned for more articles and comments

-Jeff Rutt