New credit scoring model could add points to your score

Fair Isaac Corporation, the leading credit score provider, is changing the way it scores credit and that could be good news for potential home buyers. The FICO score is the industry standard designed to tell lenders how likely it is that a consumer will repay a loan. A Consumer Financial Protection Bureau study revealed recently that consumers were being over-penalized for unpaid medical debts compared to other kinds of debt.

The new scoring model will also give less weight to paid debts that were in collection. Under the previous system, collections could impact credit scores as much as foreclosures and bankruptcies did. That is changing.

One example: A consumer with a credit score of 711 has a strong credit history but unpaid medical bills were lowering the score. The new scoring method could bring the score up to 725 and make consumers eligible for loans such as mortgages with much lower interest rates.

The home mortgage market in the second quarter improved as demand increased and many banks eased their lending standards.
Note that in August, the average interest rate on a 30-year fixed rate mortgage was 4.12 percent promoting mortgages and loans.

The changes are expected to increase lending, especially among borrowers who were shut out by high interest rates and low credit scores.

The rules are aimed at boosting lending without raising credit risk. Most consumer infractions are small. For example, they are generally on time paying their bills, but disrupted by a  medical emergency. More than half of all debt-collection activity on credit reports comes from medical bills, according to the Federal Reserve.

“The new rules expand banks’ ability to make loans to people who might not have qualified, and to offer lower interest rates to others,” said Nessa Feddis, senior vice president of consumer protection and payments at the American Bankers Association.

Stock market predictions for 2014

The bulls have been rampaging through Wall Street for five years and the pessimists say, if you are not in the party now, it’s too late to join.

Quoted  in USAToday,  Barry Bannister, chief equity stategist at Stifel, says he is not a bear, but the upward trend in stocks won’t continue.  He predicts a leveling out of prices in 2014.

Meanwhile at JPMorgan Chase, the  chief equity strategist predicts rising stock prices for at least another  year.

Blogger Toby Connor of Gold Scents says the market is ripe to reverse and appears to be in a bubble of overvaluation caused by the Fed. Connor recommends individuals save their money until stock prices correct and buy low.

At the end of November, 2013, the Standard & Poor’s 500 stock index was up by 25.4 percent and topped 1800 for the first time. It posted 36 record closes, the most since 1998.

The average year-end price target of 13 strategists polled by Bloomberg Businessweek was 1890. By now, we know whether they hit the target or not. Either way, the S&P did very well in 2013. He predicts a 13 percent gain in 2014.

Bannister predicts that the S&P will stand at 1750 at the end of 2013. John Stoltzfus, chief investment strategist at Oppenheimer, was positive. He says the stock market will receive support from the ongoing migration of investors’ cash from bonds to stocks. And stocks are more attractively priced than bonds. He expects the S&P 500 to grow profits at 5.5 percent in 2014.

Stoltzfus doesn’t believe the Federal Reserve’s bond-buying program, or quantitative easing (QE) is responsible for 2013 stock market gains and  says it just primed the well of the U.S. economy. He says the market will be able to avoid relapse when the Fed starts dialing back on its stimulus.

 

Can’t afford to hire an MBA to grow your business?

A massive corporation can pick up the phone and call its Nerd Department and have 20 guys in blue jeans working a computer project in a hour.

In small business, a problem like that probably means the boss has to learn a new skill. Unless…

Unless the boss takes advantage of the fantastic new resources online that offer help from pointy headed nerds and MBAs for not so much money.

These days you can contract with an MBA to price your products, draw your logo, or do a variety of business calculating including  financial modeling, competitive analysis and marketing for a fraction of what a consulting company would charge.

One of the new companies is Skillbridge. Two-thirds of the 300 freelancers listed on Skillbridge have an advanced degree. To get listed on Skillbridge, professionals submit their resumes to be evaluated. When a company lists a job, the site comes back with a list of specialists who have been singled out because of their experience. Companies pay a commission of 10 to 20 percent.

For smaller companies this is gold.  One company estimated that a small consulting company would have charged him $20,000 for work don in 35 hours by a Skillbridge MBA for $1,500.

Their services are especially popular with startups, small businesses, and companies on lean budgets.

The companies can choose someone who is hyper specialized and work with them only for the exact amount of time they need.

HourlyNerd charges $25 to $75 an hour to rent out one of their investment bankers, MBAs or nerds.

For even lower prices, try Odesk.com for contractors based around the world.

 

Selecting the right property management firm

Selecting the right property management firm is the best way to protect your commercial real estate investment.  The broker of our office and partner has over fourteen years in property management and in excess of 39 years in bookkeeping/management.  GTK has years of experience in our office team waiting to represent you.

Currently, GTK’s management portfolio has over 2 million square feet in the Anchorage Bowl and working to expand into the Matanuska-Susitna Borough. GTK takes care of budgeting, invoicing, collections, lease renewals, tenant improvements, customized reports, property inspections, pass-through calculations, accounts receivable, accounts payable as well as paying mortgages and hand delivering tax payments to the MOA, just to list a few of our services.

Our reports are delivered to our owners no later than the 15th of each month with a detailed variance report describing the changes in costs or budget overages. We create Reserves within the owner’s specific accounts for taxes, insurance, improvements, major repairs, and advise in writing monthly where those numbers stand as well as any recommended changes.  As an added benefit to our clients, we track annual property tax assessments and will alert you if any increases seem extraordinarily high to recommend appealing the assessment.

On the maintenance side, GTK works with several companies that give us below-industry rates. By outsourcing the maintenance, we give the assurance of no conflicts of service by an in-house company. In addition, we personally answer our telephones 24 hours a day, seven days a week so we know what is going on with each property and can respond promptly.

GTK Commercial provides assistance with our commercial real estate professionals to help you to find new tenants at market rates, sell your property or assist you in selecting new real estate investments to increase your portfolio.

This is just a brief overview of what GTK Commercial can and will do for you.  Our management style is to be the mediator between the Landlord and the Tenant, making certain both parties get the best service available.

We welcome the opportunity to meet with you in person to discuss how we may become your representative.

October 2011

Municipality Statistics
For 10/1/2011 To 10/31/2011
Commercial Lease

As Of 11/04/2011

City

Active

Volume

Average
List Price

Anchorage

392

$ 53,150

$ 1.36

       

 

For 10/1/2011 To 10/31/2011

Active

Volume

Average
List Price

New

Pend

Sold

Average
Sold Price

Average
Sold ADOM

Expr

With-
drawn

BOM

449

$ 56,135

$ 1.25

38

0

25

$ 2.39

0

12

0

2

 

All information is deemed reliable, but is not guaranteed. Interested parties are advised to independently verify all information contained herein. © 2011 MLS and FBS.
Prepared by GTK Commercial Real Estate, LLC on Friday, November 04, 2011 11:24 AM 

Welcome to GTK Commercial R.E.

Welcome to our new website! We hope you find all of the new information useful and much easier to navigate through. We will be adding Portals soon, so keep checking back for more updates!

All information is deemed reliable, but is not guaranteed. Interested parties are advised to independently verify all information contained herein.