Tuesday, February 26, 2008

Bad News = Good News

South Florida number 1 in home prices slide. South Florida home prices lost 17.5 percent in the final quarter of 2007, the worst performance in the nation, Standard & Poor's said Tuesday. Although this may sound like bad news, this is exactly what the economy needs. A CORRECTION! The sooner home prices correct, the quicker we exit the recession we are in.

Thursday, February 14, 2008

RISKY BUSINESS: Construction Risks vs. Business Entity Selection

Construction is risky. However, risks can be mitigated depending on the type of corporate entity you select for your business. (i.e. Corporation, Partnership, LLC) Corporations and LLC's limit an owners liability to the capital invested in their business. Meaning, owners will not be held personally liable for the liabilities of their business. This is also known as "piercing the corporate veil". On the otherhand, partners of a General Partnership are jointly and severally liable for the liabilities of the Partnership itself. This is not a good thing in the world of construction. In addition to risk, there are several "tax" issues you may want to consider when selecting a type of business entity. Please consult with an attorney or accountant for more advice on possible tax consequences.

Thursday, February 7, 2008

Troubled homeowners: Can't pay? Just walk away...

Let's use are imagination and assume the following facts were actually "reality": 1) Property values are droping at the fastest rate in modern history. 2) As more and more ARMS (adjustable rate mortgages) begin to reset, monthly mortgage payments are spiraling out of control. 3) The end is no where in sight. Assuming these facts, what should a troubled homeowner who can't pay her mortgage payments do? According to CNN Money, Just walk away... Great article in yesterday's CNN Money. I highly recommend you read it. In a nutshell, even though a foreclosure will destroy a person's credit record, trying to pay off a loan they can't afford could be worse for a borrower if it leads to bankruptcy.