Athletes do all sorts of physical things to prepare for competition…from nutrition, weight training, sport-specific drills and all sorts of other things.
But what about mental preparation? Are you taking the time to develop a strong mental game that gives you an advantage over your competition?
I’m linking to an article from one of my favorite mental game teachers, Dr. Patrick Cohn of Peak Sports Performance. Dr. Cohn is a sports psychologist out of and he’s always preaching on how to build mental toughness – as well as the techniques athletes can use to grasp it.
Making an offer over the asking price on a house often makes buyers wince.
But let’s face it, paying above list price is just a reality in certain circumstances—at least if you really have any hopes of getting that house!
Is it a good idea? Well, this article from Realtor.com outlines a few reasons why it might be. It’s a good read and I highly recommend it.
Reasons to Offer Over Asking
In many parts of the country we are in what would be considered a “sellers market”, so buyers must adapt. A good rule of thumb: ‘If houses are selling in your neighborhood in less than 10 days, it’s a strong seller’s market’.
Here are a few other reasons you may want to bid more than list price:
You love the home and want to make sure you get it
You know there’s a bidding war or lots of competition for the property
The house is undervalued (comparable sales can help you judge this)
There are cash bids on the table
How To Decide
With that said, does it really make financial sense to pay more for a home than the asking price?
The answer is…it depends – and you should do the math to make sure.
My friends at The MBS Highway have put together a tool that helps buyers decide if making an offer over the asking price is a good financial decision.
Their “Buy Over Ask” tool takes into account a myriad of factors – from the asking price itself to expected appreciation – even to a break-even point that shows the exact month you should expect your return.
In the example above, by offering $7,500 over the seller’s asking price, a buyer’s break-even point is only one month away…and they can expect appreciation of nearly $100K over the next 5 years. In this case, it looks like paying a bit over asking would be a good idea, indeed.
Find Out If Offering Over Asking Is Right For You
It would be my pleasure to help any potential buyer find out if bidding over list is a good idea.
Reach out to me and I can easily put together a summary just like the one above for you to help determine if making an offer over the asking price is something you should consider!
My friend Jordan Zimmerman (ZB Velocity) turned me on to Dorfman’s book, as he said it helped him become a mentally strong pitcherand was crucial to his success as a professional pitcher.
He still uses it today in his teaching…he told me he keeps going back to his highlighted and dog-eared copy.
Dorfman was best known as an mental skills/sports psychology coach who worked in education and psychology as a teacher, counselor, coach, and consultant. Prior to starting a business as a mental skills coach. he also wrote for a local paper, taught English, and coached basketball at Burr and Burton Academy in Vermont.
He earned World Series Championship rings by serving as a mental skills coach for the 1989 Oakland A’s and the 1997 Florida Marlins. In 1999, Dorfman became a full-time consultant teaching the skills of sport psychology and staff development for the Scott Boras Corporation, an agency that represents professional baseball players.
Through his books and his teaching experience, he helped thousands of people get more of what they wanted from life through his tough love and clear insight. Some baseball greats give him credit for their success in life as well as in baseball.
Editorial Reviews
When Harvey left our organization to go work for Florida, we didn’t even try to replace him because, quite frankly, his legacy was already throughout our system. All of the players and coaches and staff he touched over the years… had become imbued with his philosophy and approach to the game. They have become Harvey’s disciples.
-SANDY ANDERSON, former President and General Manager, Oakland Athletics, former Executive Vice President, Office of Major League Baseball, currently General Manager, New York Mets.
When you talk to Harv, you get the truth from him, whether you like it or not. He always says, ‘I don’t care about your feelings. I care about your actions.’
-TIM BELCHER, former Major League Pitcher and Pitching Coach.
He’s truly amazing. It’s clear most people don’t want to hear the truth about themselves, but Harv gets in your face, uses a few choice words to get your attention, and he’s got you.
-AL LEITER, former Major League Pitcher, currently Studio Analyst and Commentator.
Harv is absolutely unique. He’s for real – a straight shooter. He gives it to you right on the line, whether you like it or not. Not many people can – or will – do that.
-WALT WEISS, former Major League All-Star Shortstop, currently manager of the Colorado Rockies.
Mortgage rates are at all-time lows. Many homeowner’s are taking advantage and locking in for the long term. But what about investors, are they doing the same?
Refinancing rental properties can unlock a good deal of wealth-building opportunities for investors, including the ability to lower interest rates and monthly payments, improve loan terms, and earn additional cash flow.
Interestingly, many investors have not taken advantage of today’s market.
For one reason or another, there are a number of investors that don’t even realize the opportunity that’s in front of them.
Should I Refinance My Rental Property?
In most cases, investors should consider a refinance to:
Much has changed in a relatively short period of time regarding rates and valuations…and they are almost all in favor of the investor.
As mentioned earlier, interest rates are historically low…and they look a lot better than they did even this time last year, let alone a few years ago.
5.75% versus 4.5% example
If you purchased an investment property in October of last year, for example, many borrowers took on mortgages with an interest rate in the high 5% range.
Today, if that investor were to refinance their $250,000 loan from 5.75% to 4.5% for example, they would save nearly $200 per month.
There might be some discount points involved depending on the scenario, but they can be financed into the loan amount, so the only out-of-pocket cost would be that of an appraisal.
Assumptions: $250K loan, 70% loan-to-value and 760+ credit score
In Conclusion
When you own an investment property, the goal is to earn a solid rate of return…and refinancing that property can increase your short-term cash flow and help you build longer-term wealth.
Do reach out to me for more, as it would be my pleasure to help you look at different options and programs that might help you in today’s market.
The dilemma: a credit card is the quickest way to build credit, but it’s nearly impossible to get a credit card without established and/or good credit.
If you’re trying to build credit or improve it, a secured credit card is one of the best tools to help you achieve that goal.
What is a secured credit card?
A secured credit card works the same as a traditional unsecured credit card, with one major distinction…a secured card requires a security deposit to use as collateral.
This deposit can be as low as $200 or $300 and is usually equal to your chosen credit limit. The credit card issuer holds onto the deposit in case you default on your payments.
What happens to that $300 deposit if you always pay your bill on time? You’ll eventually get it back. Use the card responsibly, and you can improve your credit enough to qualify for an unsecured card — one that doesn’t require a deposit.
How To Use It
Although they require a deposit, secured credit cards are a powerful tool for rebuilding credit. Most importantly, use the card carefully, making a few purchases every month – don’t go too close to your credit limit.
A generally accepted directive is to use less than 30% of your credit line each month.
When you keep your card balance at a reasonable level, it demonstrates to creditors that you are not relying solely on credit to meet your obligations.
Pay your balance in full (or just slightly short of it) every month before the due date. When you pay in full, you won’t be charged interest. Interest rates on secured cards are generally higher than those on unsecured cards.
Keep an eye on your credit score over time using a free service like Credit Karma; when it has meaningfully improved, ask your issuer about upgrading to an unsecured card
As you use a secured credit card regularly and make your payments on time (or even early) every month, you establish better and better credit through your payment history.
Key Tips to Follow
Make Sure It Will Help
Some secured cards don’t report your account activity to all three major credit bureaus. This means that even if you use the card responsibly, it may not help you build your credit history. Make sure that the card you choose reports to the credit bureaus.
Consider the Issuer
Some of the major credit card issuers offer secured credit cards, but most secured cards are issued by banks and credit unions you may not recognize. That’s fine, but do your research to make sure the issuer is reputable and offers a good customer experience.
Look Out for Fees
Some secured credit cards charge an annual fee and other fees. Others, however, won’t charge you a fee unless you take out a cash advance or request balance transfers.
“The score doesn’t look at a secured card any differently than an unsecured card,” said Barry Paperno, a credit score expert who has worked with FICO and Experian.
“It will look at the fact it’s a credit card, when the card was opened, the credit limit and the balance, and of course the payment history. In that way it will help establish credit just like an unsecured card.”
In Conclusion
With the right secured credit card, you will have the benefit of being able to add positive payment history to your credit report. Consider a secured credit card as a stepping-stone to qualifying for a better credit card in the future. Please reach out to me for more, as it would be my pleasure to work with you in building your credit.
Thomas Eugene Bonetto
Mortgage Loan Originator
NMLS: 1431961
About The Coach
Tom Bonetto has been helping his customers and players achieve their best for nearly 30 years. His goal is to provide both a superior customer experience and tremendous value for both his business associates and his players alike.
