In search of an honest man

Similar to Diogenes’ search for an honest man, homeowners want someone to do quality repairs at a fair price.  The task appears reasonably easy but if you’ve ever tried to locate someone to fix something, you know just how difficult it is.

Finding a list of companies from a phone book doesn’t mean they’ll be reasonable and reliable, it just means they have a phone and are willing to pay for an ad.  Searching on the Internet may direct you to a website that appears to be a local company but really is a marketing company who will sell the lead to a repairman or company who will pay a referral fee.

There are consumer organizations like Angie’s list who rate repairmen and contractors but they usually require an annual membership fee to be able to access the information.  There are also services like Renovation Experts or Service Magic that are registries for contractors but they may not be the most competitively priced.  

Your best recommendations are going to come from friends, family and neighbors you trust who have actually used the repairmen before and would use them again.  The problem here is that you might have to make multiple calls before you can find a friend who can recommend the type contractor you need.

Repairs are a normal part of selling homes and we certainly come in contact with lots of contractors.  This experience leads us to understand who is reputable and reasonable as well as who to avoid.  As part of our commitment to helping you be a better homeowner from the time you buy your home until you sell it, we’re more than happy to make a recommendation of good repairmen or other professionals you might need.  Give us a call…we want to help.

Live in the Fabulous resort of KoOlina with its 4 lagoons, walking paths, marina, and golf.  Gated community on the Leeward side of O'ahu. Single level townhouse, ground floor end unit.  It has 2 bedrooms, 2 baths, 1 car garage and 1 open car space. It is 1144 square feet with 114 square feet of Lanai.  The unit has all appliances including washing and dryer. The rooms have ceiling fans with berber carpet or tile floors.  Ready to move into on March 1, 2012.   No pets or smoking.  Rent is $2500 a month which includes water and sewer. Security deposit of $2500.  See additional photos at www.JohnRiggins.com

Choose Your Deduction

One third of all U.S. households, 75% of households with more than $75,000 income and most homeowners itemize their deduction on their federal income tax returns. It makes sense because the interest paid on their mortgage and their property taxes probably exceeds the allowable standard deduction.

However, with interest rates as low as they have been in the last two years and the price of homes having come down considerably, it is possible that the standard deduction may be the better choice.

Each year, the taxpayer can compare the total of the itemized deductions to the standard deduction to select which method will result in the most benefits. The 2011 standard deduction is $11,600 for married couple filing jointly and $5,800 for single filers.

The Housing and Economic Recovery Act of 2008 allows homeowners to take the standard deduction and the lesser of their actual property taxes of $1,000 if filing their return married jointly. For more information, see Schedule L found on www.IRS.gov and consult your tax advisor.

Fear of foreclosure is a national epidemic.

Millions of homeowners fell behind on their mortgage payments last year, and then proceeded to fall further behind every month.

These are tough times and there are no easy answers.

The fact is, major lenders, the federal government, and local agencies across the country have stepped up their efforts to stem the tide of foreclosures. More help is available than ever before.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am knowledgeable and adept at navigating among the full range of solutions for helping financially distressed homeowners to make a fresh start.

Looking to learn more? Check out my free report: "Tipping the Scales Toward Foreclosure? Resolve to Shed the Weight of an Unmanageable Mortgage in 2012."

And if you, or someone you care about is looking to tip the scales back into financial solvency, contact me today for a confidential consultation!

Part of the American Dream is to own a home. A home is a place to call your own; a place to raise your family and share with your friends. A home is a place to feel safe and secure. A home is a good investment?

The "Right Size" Home

Work hard, buy a home, start a family and continue to upgrade your home until everyone has enough room. This has been the blueprint for lots of homeowners for the last fifty years but there is certainly a shift in thinking that could change all of that.

Interestingly, Americans live in much larger homes than most people in other countries throughout the world. The U.S. Census reported in 2006 that the average single family home completed had 2,469 square feet which was 769 feet more than in 1976.

Once the children are grown and have moved out, homeowners are finding they have too much room. Even if their home is paid for, they have higher property taxes, insurance, utilities and maintenance on the larger home than they'd have if they were living in the "right size" home.

Some homeowners state that they're keeping their larger home because it has luxury features that smaller homes don't have. There's a movement that seems to have started in the United States to find the "right size" home with the amenities and convenience that homeowners want.

This philosophy has been expressed by Sarah Susanka in her book Creating the Not So Big House. It proposes a house that "values quality over quantity with an emphasis on comfort and beauty, a high level of detail, and a floor plan designed for today's informal lifestyle."

Last Minute Gifts Without Shopping

What do they want? What do they need? Will it fit? Do they already have one? These are the common thoughts running through our minds when trying to find the perfect gift.

The gift of really listening with no interrupting, no daydreaming and no planning your response is exactly what people want when they have something important to say.

The gift of affection with appropriate hugs, kisses and pats on the back can demonstrate your love for family and friends better than words.

The gift of laughter by sharing cartoons and funny stories will say "I love to laugh with you."

The gift of a simple written note shows sincerity and real heartfelt sentiment that may be remembered for a lifetime and could even change a life.

The gift of a sincere compliment supports a person's need to be accepted and appreciated. "You look great in that color", "That was outstanding" or "I really enjoyed that" can make someone's day.

The gift of random kindness or good deeds like holding a door or allowing someone to move ahead of you in a checkout lane shows respect for others.

Your smile, however, may be your most rewarding gift. Invariably, the person receiving the smile will in turn, smile back. The gift you gave will now be given back to you. It will be the right size and you can always use one more.

There's No Place Like Home

You don't have to be Dorothy in the Wizard of Oz to feel like there's no place like home.

Home is a place to call your own. It's a place to raise your family and share with your friends. It's a place to create memories. A home is a place to feel safe and secure.

Inspect all of your decorations and electrical lighting before using them. While you're enjoying the holidays this year, it's important to pay attention to some of the things that may affect your safety.

• Extension cords should not be placed under the carpet or rugs or bundled together which could cause overheating.
• Limit three standard size sets of lights to a single extension cord.
• Consider using portable or permanent ground fault circuit interrupters with all lighting to avoid possible shocks.
• Turn off holiday lights when you leave the home or got to bed.
• Avoid using candles near trees or wreaths.
• Do not allow natural trees to dry out during the time they're displayed to potential fire hazard.
• Make certain that all trees are on a firm, steady base to avoid tipping over.
• Don't burn wrapping paper in fireplaces.
• Small children are particularly susceptible to accidents and should be protected from potential harm.

Here's hoping your time at home is special during this holiday season. Please let us know if there is anything we can do for you.

Finding the Best Deal

Consumers are vigilant about buying opportunities like Black Friday, Small Business Saturday and Cyber Monday along with sales, coupons and rebates.  Some cautious buyers will even risk shopping early to find exactly what they want to waiting until the last moment for potentially lower prices.

In retail, the hype is more obvious and the signs may be easier to read than that of the home market.  Certainly, volumes have been written about the record low mortgage rates and that home prices have adjusted considerably lower in the last four years.

A more subtle indication of a home buying bargain is that statistics indicate that year-after-year, the average home prices fall in the fourth quarter.  The holidays beginning with Thanksgiving, winter weather and the distractions of gift purchases certainly contribute to lower home sales.  

Regardless of what is causing the reduced volume, the smart buyer can take advantage of the end of the year to get their best possible deal on a home purchase.  The buyers willing to buck the trend could easily benefit from lower prices and less competition from other buyers.

                You are invited to stop by the Kapolei Safeway on Friday, December 9 between 2pm to 4pm to contribute to the Salvation Army.  My son, Ryan, and I will be ringing the Salvation Army bell.

                Ever since I was a young child I remember the Salvation Army ringing the bell before Christmas to raise funds to give to the needy.  But it’s not just at Christmas that the Salvation Army helps.  Whenever there is a natural disaster, a fire in a home or some other catastrophic that event takes place, the Salvation Army immediately responds to help provide clothing, shelter, food and counseling.

                At this time of year when we give thanks for all of our blessings and our good fortune, let’s not forget those in need.  I urge everyone to give to the Salvation Army.  If you are unable to stop by on Friday, send a donation to the Salvation Army. 

http://www.salvationarmyusa.org/usn/www_usn_2.nsf

Why Pay Full Price?

No one wants to pay more than its value regardless of the product. When you buy bananas for 49 cents a pound at one store and see them for 39 cents a pound at another store, it's not the ten cent difference as much as it is about overpaying.

It seems like the natural way to start the negotiation process is to offer less than the asking price for the home. However, instead of the price, a buyer could negotiate condition, timing or terms. A few thousand dollars off the price may not make much difference in the monthly payments but it might make a big difference if it was negotiated in one of the other areas.

A buyer who only has enough available funds for down payment and closing costs will have to live in a home exactly the way it is for some time. They may not be able to make the changes that would really make it feel like home until they've saved more money.

Let's say you found a home that needed $5,000 worth of improvements and the seller would lower the price by that amount. Financing those improvements with a separate bank loan will result in higher payments due to a higher interest rate and shorter term than your mortgage.

Offering full price and asking the seller to make the improvements will result in lower monthly payments based on today's low mortgage rates and 30 year term. Another alternative is to negotiate with the seller to pay your closing costs so you'd have the cash to make the improvements.

Paying full price may cause the seller to consider concessions regarding condition or terms which can be balanced to affect the value of the property. Buyers can and should negotiate to acquire the home that meets their needs at the lowest possible cost of housing.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you'll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you're leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you'd like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com (http://REALTOR.com) to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you'd like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you're comfortable spending each month on housing. Don't wait until you've found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you're eligible to borrow. The lender won't necessarily consider the extra fees you'll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you're comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you'll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you'll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you'll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you're interested in. Because homebuying triggers many emotions, consider whether an agent's style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers' reps work only for you even though they're typically paid by the seller. Finally, check whether agents are REALTORS®, which means they're members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It's OK to be picky about the home and neighborhood you want, but don't be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don't be so swayed by a "wow" feature that you forget about other issues-like noise levels-that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there's no such thing as the perfect home.

8. Limit the opinions you solicit

It's natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you've identified as important.

Fannie and Freddie Detail New HARP Guidelines

11/15/2011BY: CARRIE BAY

Property tax exemptions in peril as panel tries to make system fair

Members of a city advisory commission want to end levy breaks for homeowners as well as for schools, churches and charities

By Rob Perez

POSTED: 01:30 a.m. HST, Nov 14, 2011

An independent review panel is leaning toward recommending that the city abolish property tax exemptions for roughly 150,000 Oahu homeowners, including the blind, elderly and disabled, as part of a major but controversial effort to bring more fairness, efficiency and accountability to the tax system while generating additional revenue for city services.

The Real Property Tax Advisory Commission also is leaning toward proposing to the City Council that exemptions for charitable organizations, credit unions, schools, churches and other groups be eliminated or substantially pared.

The reforms being discussed are meant to provide tax relief that is more closely linked to a landowner's ability to pay rather than giving such breaks simply because one belongs to a particular category, such as homeowners or disabled veterans, according to the commission's chairman, Lowell Kalapa, who heads the Tax Foundation of Hawaii. The reforms also would more equitably spread the burden of funding city services, he said.

The commission, formed by the Council in the wake of several recent property tax controversies, has been meeting since August to discuss ways to reform the system. Despite the potential impact of what's being considered, the discussions so far have drawn little public attention.

But that's likely to change once the panel makes its recommendations to the Council before the end of the year.

Politically influential groups that have long benefited from the exemptions — many have been on the books for decades — are expected to intensely lobby the Council, arguing that the tax breaks are justified. And with five of the nine Council seats up for election next year, the chances of anything especially controversial passing are slim, some say.

Kalapa, a tax policy expert, acknowledged the political storm that could be created but said the commission's task was to propose ways to improve the system without regard for political consequences.

"We were created to take the political heat off elected officials," he said.

Council Chairman Ernest Martin said he expects the commission's recommendations to get serious consideration by the Council, and agrees that some exemptions are obsolete and should be eliminated. But he said he doubts the Council would support abolishing the homeowner exemption.

"No doubt, it'll be very contentious," Martin said.

The main focus of the advisory commission thus far has been the 40-plus property tax exemptions that economist Paul Brewbaker, vice chairman of the panel, described as a "gobbledygooky hodgepodge with seemingly no rational pattern."

The exemptions, amounting to roughly $100 million in lost revenue annually, cover a range of categories, from slaughterhouses, crop shelters and for-profit child care centers to historic homes, cemeteries and foreign consulates.

"I had no idea how complex and convoluted some of these things were," said Brewbaker, who questioned the need for any exemptions.

ELIMINATING the homeowner exemptions, claimed by more than 144,000 owners and amounting to nearly $50 million in lost city revenue annually, is the most controversial proposal being discussed. The main exemption reduces the taxable value of a residence by $80,000, saving occupant homeowners who apply $280 a year based on current tax rates.

Additional exemptions are permitted if the homeowner is 65 or older, blind, deaf, a disabled veteran or in a variety of other categories.

Kapolei homeowner and Realtor John Riggins said eliminating the standard exemption wouldn't be fair because many homeowners made their retirement plans partly based on the tax breaks. He also said removing the exemption would exacerbate Hawaii's already serious housing affordability problem.

"I just don't think that's a good idea at all," Riggins said.

But Kalapa and other commission members questioned the fairness of giving tax relief without regard to one's ability to pay, noting that multimillionaires living in mansions are getting the same breaks as homeowners living in modest homes struggling to pay their bills.

Kalapa also questioned the fairness of homeowners getting tax relief while renters — who make up nearly half of Oahu's households — get none.

"There is no equity for people who don't own their own homes," he said.

Similarly, some commission members noted that wealthy nonprofits pay the same $300 minimum tax for parcels valued at more than $100 million as cash-strapped nonprofits owning small patches of land assessed at fractions of that value.

Property taxes generate the bulk of the city's revenue and are used to pay for fire, police, ambulance and other services.

The idea behind the reforms is that everybody uses those services, so everyone should pay their fair share, with adjustments made for those who can't afford their tabs or those who provide services that benefit the city, Kalapa said.

"If you don't pay for it, then someone else does, subsidizing your share," he added.

And if people forgo paying their fair share, they still get the same level of city services, but the accountability link — making sure taxpayer dollars are spent wisely — becomes obscured because they aren't footing the bill, according to Kalapa.

For homeowners who can't afford their property taxes, the city has a low-income tax credit program that reduces the tab, assuming the homeowner meets the eligibility criteria. If the exemptions are eliminated, Kalapa said, that program can provide relief for those in need.

The commission was not asked to consider the city's budget challenges in coming up with recommendations, but panel members understand that eliminating exemptions will result in more tax revenue.

"We're keenly aware of the fact that there's a $100 million shortfall," Kalapa said.

While the commission is not evaluating the city's property tax rates, some members say the Council should consider lowering the residential rate in conjuction with eliminating the homeowner exemptions.

Natalie Iwasa, a certified public accountant and member of the commission, described the current property tax and exemption system as a mess that needs to be overhauled.

Holly Huber, a database specialist who has been examining the city's system for more than a year, said she continues to find numerous errors or inaccuracies because of a lack of oversight.

"Every time I look at something, I just shake my head," she said. "I can't believe what a nightmare it is."

She noted, for instance, that the city assessed the land for Punahou School's 74-acre campus at only $37,000, while ‘Iolani School's 22-acre parcel is valued at $105 million.

City Budget Director Mike Hansen explained that assessments for tax-exempt property owned by nonprofit groups, including schools, have not been a top priority because those organizations pay only $300 regardless of the value of their parcels. The city has focused its limited staff on taxable properties, he said.

That would have to change, though, if one of the proposals under consideration by the commission is adopted. According to the proposal, only nonprofits with a 501(c)(3) designation would be eligible for an exemption, and the relief would be based on a percentage of the value of the organization's parcel.

Commission member Lisa Maruyama, president of the Hawaii Association of Nonprofit Organizations, said land values don't reflect an organization's ability to pay, given that some nonprofits are land rich but cash poor. She opposes changing the existing nonprofit exemption.

Kalapa acknowledges that whatever the commission decides, the proposed changes will face tough going at the Council. "People won't like what we're going to say, but at least it'll be out there for people to talk about and debate."

Two notes before jumping in:

• Proof of Military Service. First, most companies require some form of military ID – including a U.S. Uniform Services ID Card (active/reserve/retired), Current Leave and Earnings Statement (LES), Photograph in uniform, be wearing uniform (if your service permits), Veterans Organization Card (e.g., American Legion and VFW), DD214, discharge paperwork, or other form of identification. Other restaurants and companies may only require a photo of you in uniform, or go by the honor system.
• Participation. Second, always call ahead to verify locations, times, and participation. Many of the listed companies are franchises and may have different policies.

2011 Free Veterans Day Meals

Applebee’s – free meal, Friday, Nov. 11:Last year, Applebee’s served 1,024,000 million free meals to military veterans and active servicemembers. Applebee’s is again offering a free meal to military veterans and active-duty service members on Veteran’s Day, Friday, Nov. 11, 2011. There will be 7 entrées to choose from. Military ID or proof of service required. Find locations at http://applebees.com/.

Chili’s – free meal, Friday, Nov. 11. Chili’s is offering all military veterans past and present their choice of one of 6 meals. This offer is available during business hours on November 11, 2011 at participating Chili’s in the U.S. only. Dine-in from limited menu only; beverages and gratuity not included. Veterans and active duty military simply show proof of military service. Visit their website to find locations.

Golden Corral – Free meal, Monday Nov. 14: The 10th annual Golden Corral Military Appreciation dinner will be held on Monday, November 14, 2011 from 5 pm to 9 pm in all Golden Corral Restaurants nationwide. The free “thank you” dinner is available to any person who has ever served in the United States Military. If you are a veteran, retired, currently serving, in the National Guard or Reserves, you are invited to participate in Golden Corral’s Military Appreciation Monday dinner. For more information visit http://www.goldencorral.com/military/.

Special thanks to Golden Corral: To date, Golden Corral restaurants have provided over 2.5 million free meals and contributed over $4.3 million to the Disabled American Veterans organization.

Hooters – Free Meal, Friday, Nov. 11. Hooter’s is serving up a free meal to military veterans all day on Veterans Day. Offer good for all veterans and active duty military personnel. Choose one of the new specialty items on the Hooter’s menu. Offer valid at participating Hooters only; open to all active duty and military veterans with valid military ID or proof of military service. Drink purchase required. For more information, visit, www.HootersVeteransDay.com.

Krispy Kreme – Free doughnut. Available only at participating Krispy Kreme stores. Offer available to all active-duty, retirees & veterans on Friday November 11th. Be sure to call ahead to verify your local Krispy Kreme is participating.

McCormick & Schmick’s Seafood Restaurants – free lunch or dinner, Sunday Nov 13, 2011: McCormick & Schmick’s is celebrating their 13th annual Veteran’s Appreciation Event on Sunday, November 13th. Veterans will be able to choose a complimentary lunch or dinner entrée. Veterans must provide proof of military service. Be sure to contact your local McCormick & Schmick’s as this is valid at participating restaurants only. Also, Space is limited and reservations are highly recommended. For more information visit: M&S Veterans Appreciation Event.

Outback Steakhouse – A week of Free Bloomin’ Onions and Cokes Monday Nov. 7 – Friday Nov. 11. Outback Steakhouse is honoring America’s military veterans by offering active duty military and veterans a free Bloomin’ Onion and a Coca-Cola product during the week leading up to Veteran’s Day. This offer is available to Military Personnel who have one of the following forms of identifications: U.S Uniform Services Identification Card, U.S Uniform Services Retired Identification Card, Current Leave and Earnings Statement (LES), DD form 214 Veterans Organization Card (i.e., American Legion and VFW), Photograph in Uniform, Wearing Uniform. For more information, visit,http://outback.com/companyinfo/veteransday.aspx.

The Outback understands commitment. For the past two years, The Outback, with the help of their patrons, has donated $2 Million to Operation Homefront, a non-profit organization providing everyday and emergency support for active troops, wounded warriors and their families.

Subway – Free Six Inch Sub. Select Subway locations offer a FREE six inch sub to military veterans on Veteran’s Day. However, Subway restaurants are franchises, so this offer may not be available everywhere. Please call ahead.

Texas Roadhouse – free meal, Friday, Nov. 11. Offer varies by location; our local Texas Roadhouse is offering a free meal from opening until 4pm. Other locations may vary in offer, hours, or availability. Call ahead to your local restaurant for more information.

T.G.I. Friday’s – Buy one get one free Nov 11-14. At participating locations for anyone with an old or current military ID. November 11-14.

Uno Chicago Grill, Friday, Nov. 11. Uno’s is offering a free entree or individual pizza with a purchase of an entree or pizza of equal or greater value. Offer good for all military for veterans and active duty military. ID or proof of service required: Show up in uniform (if your service permits), provide military ID, show a picture of yourself in uniform, or have other ID showing proof of service. More info here.

Home Depot and Lowes Coupon Updates

Update: Home Depot and Lowes 10% Military Discount Available Everyday.

Home Depot: The Home Depot(R) is offering all active duty personnel, reservists, retired military, veterans and their families a 10 percent discount off their purchases in honor of Veteran’s Day. The offer is valid on purchases of up to $2,000 for a maximum of $200 and is available at The Home Depot stores, The Home Depot Design Center locations, Yardbirds and EXPO Design Center(R) locations. The 10% discount is available everyday for active duty and retirees, but not all veterans. Home Depot makes this offer available to all veterans on most military holidays. You can also find Home Depot discounts online.

Lowes: Lowe’s Companies, Inc. will offer all active, reserve, honorably discharged, retired military personnel and their immediate family members a 10 percent discount on in-store U.S. purchases made during the Veterans Day holiday. The discount is available Nov. 7 – Nov. 11. The discount is available on in-stock and special order purchases up to $5,000. To qualify, individuals must present a valid military ID or other proof of service. Excluded from the discount are sales via Lowes.com, previous sales, and purchases of services or gift cards. Like Home Depot, Lowes offers this discount daily to active duty military members, but not to veterans. However, they extend the offer to military veterans on military holidays. You can also find exclusive discounts at Lowe’s.com.

Free Park Admissions for Veterans Day

Fee Free Day at National Parks. To honor America’s service men and women, Secretary of the Interior Ken Salazar announced that areas managed by the National Park Service would not charge entrance fees for Veteran’s Day weekend – November 11-13, 2011.Over 100 national Parks will be participating in this event.

Bed and Breakfast for Vets

In the third year of the program, B&Bs for Vets has organized over 485 (and counting) participating Bed and Breakfasts and Inns across the US and Canada which will be offering veterans a free night’s stay on November 10th, the night before Veterans Day. This offer is available to both active duty military members and veterans with ID, but space is limited. Each Inn and B&B has at least one room available for this promotion and reservations must be made directly through the participating Inns and B&Bs. For more information visit B&Bs for Vets.

Free Hugo® Canes for Veterans.

Sam’s Club® locations nationwide will distribute 36,000 Hugo® canes free of charge on November 9th, 10th, 11th, 2011 to U.S. military veterans in need of mobility assistance. Limited quantities available, while supplies last. Sam’s Club® Membership is not required, but proof of military service may be required. For more information, visit HugoSalutes.com.

Jos. A. Bank Veteran’s Day coupons:

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• All Executive suits $177, 2nd $57 – Lowest prices this year for suits! You save $866 when you buy 2!
• All Traveler and Signature Suits $377, 2nd $97
• All Joseph & Signature Gold Suits $577, 2nd $197
• ALL SPORTCOATS, BLAZERS AND DRESS PANTS 50% OFF
• JOS A BANK VETERANS DAY SALE ORDERS $175+ SHIP FREE Valid: NOVEMBER 11, 2010.
• Valid: November 11, 2010

Family & Friends' Mortgages

It all seems perfectly reasonable: one person is not satisfied with what he can earn currently in the market and another wants to find the most attractive mortgage to purchase their home. It can be a good match but the IRS has specific rules that govern the transaction.

The loan must be done in a business-like manner with a written note specifying the loan amount, interest rate, term and collateral. IRS requires that the mortgage be a recorded lien in order to allow the interest deduction.

Sometimes, these friends and family situations have a less than normal interest rate on the mortgage. However, the rate charged in the note is regulated by the minimum applicable federal rate which is published monthly by IRS according to current Treasury securities. For October 2011, the rate is 2.95% for terms over nine years.

The seller must report the interest paid to them along with the name, address and Social Security number on schedule B when the buyer uses the property as their principal residence.

A mortgage between family and friends can be good for both parties. It may allow the borrower a slightly lower rate without the expenses of a traditional lender while giving the note holder a higher rate than they can earn in available investments. Your tax professional can guide the transaction whether you're a buyer or seller and your real estate professional can help arrange to have the documents drawn and filed.