Market Update - Late 2010 The economy is still lagging….so when will it end? It used to be that a meeting of the Federal Reserve Board was accompanied by great anticipation and trepidation. This is no longer the case. As a matter of fact, there have been no previous time periods in the past forty years when the Fed has been so inactive when it comes to changing short-term rates. It has been just about two years since the last significant adjustment. Not that the Fed has been idle. They have been very busy purchasing bonds and mortgage securities. And more of these activities may follow, though the recent reports on retail sales and employment, while not strong, may keep the Fed inactive in this regard for right now. The Fed has nowhere to go with regard to rates. The markets would love to see some statement that is positive. More than likely, the Fed will play down the chances of a double dip while acknowledging that the present state of the economy, especially real estate, is slower than anticipated. This is old news. So if interest rates are not going any lower, at least they are not going higher.  In Kentucky and throughout much of the upper mid south USA, we have seen modest growth in real estate in the last few years.  It seems our area has withered the "storm" better than most, but it is still very painful to see the chaos this rescission has done to the average American family.  We are all clinging to what we have in hopes that we wont lose it, and we are thankful for what we have!  Unemployment is still very high and companies are still NOT hiring.  In Louisville Kentucky, we are blessed with a stable economy that is very broad based and doesn't depend on one industry too much (such as tourism).  Again, this has allowed Kentucky to wither the storm better than most of the USA.  Even in the face of recession, these are GREAT times to buy real estate or at least attempt to fix your credit now, so you can position yourself to buy in the next few years.  Although it is harder than ever to get a loan, it is worth it to take steps to improve your credit now because the next 10-20 years should see steady growth as our economy rebounds.  And the government will keep the growth in check this time, so we can avoid another crash. This means we are at the bottom of the "canyon" looking up! .  This recession has been painful, but it has provided opportunities for investment like never before!  Consider that 30-year fixed interest rates averaged 4.37% for much of mid 2010 and a year ago 30-year fixed rates were at 5.04%.  They have continued to fall and still people CANNOT GET APPROVED TO BUY REAL ESTATE because of tighter standards placed by banks.  In fact, the minimum credit scores are now over 620 to qualify for a mortgage in the USA.   8 out of 10 mortgages granted in the last 12 months have been refinances.   This means that you can get the lowest rates of all time and have very little competition in the real estate market now!  That is….if you can qualify..and most people cannot. At Rent2ownlouisville, we have a great program to help!   Our Land Contract program has proven to help buyers get into the property they want NOW….and improve your credit score so you can get financing LATER!!!   Call or email us anytime to get more information on how it works.   As always, we continue to offer short term executive rental housing and lease option programs as well.   We thank all of our clients in 2010 and welcome new clients in the next year! Contact us anytime at   zcd723@gmail.com    or 502-777-5246  to get more information or inquire on any property we currently offer.  Remember, if you don't see the property you want, it doesn't mean we cannot buy it for you and lease it back to you!

Market Update - Mid 2010 The economy is improving with higher retail sales, stronger factory output and a rise in companies' stockpiles.  That picture emerged from reports Friday pointing to an economy that's improving modestly but steadily after the worst recession in decades. Yet the recovery needs stronger job creation, and it remains under pressure from fears that Europe's debt crisis could slow the U.S. economy. Shoppers are closely watched because their spending accounts for 70 percent of economic activity in the USA. It rose in the first four months of this year at the fastest pace in three years, according to the Commerce Department report. Still, consumers and businesses appear less confident of and "end" to the recession than in previous recoveries.  Complicating the recovery is the uncertainty in Europe.  The Europe Union's bailout plan will slow a global recovery and be very costly.  Economists worry that spending could falter in the coming months without more growth in income. But there have been encouraging signs that job growth is picking up.  Still, the unemployment rate rose to 9.9 percent as more people began or resumed job searches - a sign that many are feeling more optimistic about the job market.   Our housing market is improving in mid 2010.  Mortgage lenders are allowing borrowers to modify their mortgages, to help stop further foreclosures.  The problem remains that there are too many vacant properties sitting in limbo, without any owner.   And buyers cannot access capital.  The few people in the USA who are buying houses these days are lucky!  Mortgages are very hard to come buy as banks are still very reluctant to lend money after the backlash from the "easy money" years in the early 2000's.  Cash is king these days and few of us have the cash to buy property, even though many properties are selling at pre 2000 prices.   A huge number of Americans have bad credit and are being forced to rent houses or apartments.  Our Land Contract program is a nice hybrid between renting and buying.  In these uncertain times, it is more popular than ever.   Our Land contract program allows you to pick the house you want now and get the mortgage later!  This is a great tool for buyers who don't want to wait to buy, but can't qualify for a mortgage yet.  The lending market will loosen up eventually, and when it does you will be able to get your mortgage on the house, while you are already living in it.  Our Land Contract program is obviously in very high demand these days, because of the uncertain times and difficulty in qualifying for a mortgage.  Of course you can also rent one of our properties on a short term basis, until you find the property you want to buy.  Renting is sometimes a perfect option for those people, who are uncertain of their future and want to avoid being tied down.  At Rent2ownlouisville, we will continue to service our clients and provide innovative options for renting and renting to own in the 2nd half of 2010.  Feel free to contact us anytime at zcd723@gmail.com or 502-777-5246 and someone will get back to as soon as possible.  Mike Howard - President

MARKET UPDATE - EARLY 2010 The question everyone in the USA wants to know is…”when will the economy REALLY get better?”  It seems like every other day we hear that we have reached the worst point. Than more bad news comes in and we feel like it will never end!   The truth is, some reforms are taking place that will prevent this type of recession from ever happening again.  But in the meantime, we just have to wait this one out.  The government is passing new laws each and every day, with the intention of cleaning up the credit mess.  For instance, the entire credit scoring system will be overhauled, banks will not be able to charge you for 30 lates on your accounts anymore unless they show proof they attempted to work with you and credit lending fees cannot be raised without prior notification to the borrower, etc.   All of these new laws will take time to show results, but they will help to rebuild the millions of Americans who’s credit score has been destroyed in the last few years.  Who do we blame?  The banks who lent the money or the people who borrowed too much money?  In my opinion the answer is, like most things, somewhere in the middle.  In the Louisville Kentucky area we have noticed that rents are going up because so many people can’t get loans.  There is now a huge backlog of renters in the area.  These are good people, making good money, who just have some credit issues.  To make matters worse, the criteria for getting a mortgage has been raised so high that almost NO ONE can get a loan!  At RENT2OWNLOUISVILLE  we have assisted record numbers of people in renting and renting to own in the last few months.   Our programs are in huge demand now because of the lending situation.                      The housing market is still very bad.  Although it seems to be getting better in some areas, the problem remains the same….banks are NOT lending money.  The TARP money that Obamba “donated” to the banks was a hopeful effort at stimulating the economy.  Instead it turned out to be a bailout of the largest banks in the USA, like CITIBANK, BANK OF AMERICA, CHASE, WELLS FARGO.  The problem is, these banks took the government bailout money and used it to buy up smaller banks and improve their balance sheets so they would appear more profitable.  While this might have raised their stock values and helped out some American’s mutual funds that have stock in these banks, it did absolutely nothing to help the housing market’s main problem…lack of funding for homebuyers!   At RENT2OWNLOUISVILLE we have seen a dramatic rise in clients seeking alternative funding methods, so they can buy a property without having to get a loan right away.  Our goal is to help people get into the house they want to buy and begin building up equity right away….WITHOUT A BANK!   Our LAND CONTRACT programs and our LEASE OPTION programs are more popular than ever because of the banking situation today.   We expect this to be a record year for us.  Thanks to all of our clients, past and present, for letting us help you!   If you have any questions about any of our programs feel free to email us at zcd723@gmail.com or call 502-777-5246. Mike Howard – President