To help present a clearer picture, we’ve analyzed the credit score ranges of consumers across the United States, looking at which states had highest and lowest average credit scores.

Visit CreditSesame.com to get your free credit score and find out where your score stands in relation to your state’s rankings!

Investors seeking higher yields are drawn to foreclosures because the rental market is red hot. But the heated competition for foreclosed homes is reminiscent of the frothy expectations that seem to accompany each new Wall Street investing craze. Some of the high-profile institutional investors who are committing money to buying foreclosed homes – or seriously considering jumping in – include private equity firm TPG Capital, investment firm Oaktree Capital Management, Warren Buffett’s Berkshire Hathaway Inc., Starwood Capital, Och-Ziff Capital Management and bond fund manager TCW, say people familiar with the fast-growing market.

“We have a shortage of rental housing already and I think this is a win-win situation,” says Kenneth Rosen, chairman of Rosen Consulting Group, which advises on urban planning and real estate management.

In February, Rosen co-authored a report with mortgage-backed securities guru Lewis Ranieri, which advocated the need for a private sector solution to the foreclosure crisis. A Ranieri-backed hedge fund, Selene Finance, has been investing in distressed mortgages for the past few years and is now eyeing foreclosed homes. “I don’t think the money to do this is the problem,” says Rosen. “It’s the execution.”

INVENTORY

The Federal Housing Finance Agency, which regulates Fannie and Freddie Mac, expects it will receive a considerable number of bids in April for the initial round of 2,500 Fannie-owned homes in cities like Atlanta, Chicago, Los Angeles and Phoenix (aka The Pilot program).

“This is really a test and we don’t know what the results will be,” says Meg Burns, senior associate director for housing and regulatory policy for the FHFA. “But the beauty of this pilot is we are going out with properties that are largely rented already, so people know what the cash flows look like and we know it is far preferable to have people living in the homes rather than the properties sitting vacant.”

Between them, Fannie and Freddie Mac own more than 200,000 foreclosed homes. The nation’s banks own more than 600,000 single-family homes, according to RealtyTrac, a housing tracking service. Housing experts expect the foreclosure machinery to crank up again now that regulators and banks have agreed to a $25 billion settlement to deal with earlier foreclosure abuses.

If the pilot program is successful, the FHFA is also considering selling off pools of distressed mortgages held by Fannie and Freddie, according to people familiar with discussions about that.

GOLD RUSH

On the Internet, this gold rush mentality clearly has taken hold with other small investment firms. In addition to Empower Wealth Management, Wong Diversified International Investments of Austin, Texas, for example, offers a fund to invest in foreclosed homes, boasting on its website that it is pursuing the Fannie bulk sale. “I think the majority of your return in this portfolio comes in the form of cash flow from renting, not capital appreciation, unless you buy properties at a huge discount,” says Abdo, executive director at TriArchic Advisors, a Las Vegas-based real estate advisory and management firm.

“It is clearly over-hyped, but I think this is real and it’s going to happen,” said Dan Magder, who about a week ago left Lone Star Funds, where he had focused on distressed banks and financial services firms. “There is definitely room for people who have a well-thought-out operational plan and are careful about putting the pieces together.”

STRATEGY

Taking the right management strategy is the crucial piece in holding it all together. Empower, who began in 2008 as a venture capital advisory group, has since transformed into a holistic financial services firm complete with real estate and insurance brokerages, a mortgage banking division, and more recently, fund management. “Many new divisions are coming to Empower this year – one of the bigger missing pieces was a strong property management division that squashes the greedy model that is out here, and rebuilds the local rental economy.” said Blake Robbins, CVO of Empower. “People need better options for their portfolio management, and renters need better options while they rebuild their lives – Empower can help.” Robbins primary job at Empower is the growth and expansion of its product and service lines, and future developments.

The enhanced investment property loan program provides greater flexibility for seasoned real estate investors and enables more investors to enter the marketplace and finance their projects.

Empower Funding’s investment property programs offer the following parameters: up to 80% LTV for purchases;  cash out refinance up to 75% LTV; and up to 60% debt-to-income with additional reserves; the ability to have up to 20 other properties financed; the option to close in the name of an LLC; and a 6% seller assist.  In addition, qualified borrowers can purchase properties with a deferred maintenance and repairs feature, which is perfect for investors who buy foreclosed properties in need of repairs.

With loan amounts of up to $2,000,000 per property, borrowers can take advantage of today’s real estate market and purchase a wide variety of properties. Investors, even if self-employed, can qualify with a minimum FICO score down to 600.

“We need to realize the immediate opportunity that is before us in the local and national economy. We do, and we’ve put feet to the opportunity. Many people – investors and home buyers are winning.” said Blake Robbins, CVO of Empower. “Investors of our funds are also pleased with the return they offer, while local loan originators and real estate brokers are able to service more clients – very healthy for Seattle and Portland’s economy.”

About Empower Funding: Empower Funding is a rapidly growing commercial lender, currently servicing the Washington state and Oregon marketplaces. Empower Funding is headquartered in the Seattle, WA, area, and is owned and operated by Empower. Empower is a holistic financial services company led by a veteran management team. More information is available at www.empower.ws

His advice? Buy em. Buy a lot of them, and finance or refinance them with 30 year mortgages. Buffet has long used the Value Investing strategy that has served him well. Sometimes, it’s the back to the basics strategies that work best; and prove to be consistently reliable. Let’s take a quick look why, beginning with mortgage rates ranging from 2003 – 2012. This is a good indicator of the pre ‘boom’, the bursting bubble, and the immediate recession following.

Mortgage rates 2003 – 2012.

Rates haven’t been this low since.. well, they have never been this low and this available more than right now. Rates are hovering just over 4% (see current rates here), with 5/1 ARM interest only loans in the low to mid 3% range. In a word, WOW. What an incredible opportunity to purchase and cash flow comfortably, profiting every month.

If that’s not enough, it gets better.  It’s never been a better time to buy a home in the past 15 years as it is now, according to a Wall Street Journal survey. Seattle’s own Zillow.com has pointed out that home values are near that of 2003, which for buyers, is very good news. Prices are down, the value of a home is still irreplaceable, and money is cheap. Not a bad combination.

Even if your home is ‘underwater’, with the new HARP 2.0 program (program updates on March 17th), refinancing at a higher LTV with a lower rate will be possible. Not a bad trade off. Plus, savvy home owners who choose to keep their homes, will be the ones to benefit in the coming months of recovery. Get a professional CMA and check your property value here.

Seattle single family home values 1993 – 2012

All in all, right now is the best time to buy and invest in real estate that we have seen in a long time, and one of the most successful people in the world is telling you to take a closer look.

Watch the interview with Warren Buffett

Although the recession ended in 2009, the aftermath, or ripple effect, reverberates for a time until stabilization, and until the media is finished with the drama. Luckily, in many sectors, the recovery rate is experiencing an increase.

With real estate being one of the top performing sectors in 2011 (the S&P/TSX Capped REIT index was up by 15%, or 24 percentage points above the return for the S&P/TSX composite), many have argued that real estate performance will continue to solidify this year, making way for a strong introduction to the spring of 2013.

Jeffrey Olin, a former real estate executive turned investment banker and portfolio manager at Vision Capital Corp. shares the same sentiments. Mr. Olin, who co-oversees the three property funds that are home to about $100 million in assets, believes the fundamentals continue to be attractive.

“The prospect of low-long-term Japanese-style interest rates for the foreseeable future bodes extremely well,” said Mr. Olin, citing a 2.85% 10-year mortgage recently given to one of the country’s largest apartment rental companies. In addition, Mr. Olin argues the supply-demand balance for commercial real estate is positive. “Across the country, we have single-digit vacancy rates for virtually every property type in virtually every region versus double-digit in the U.S. You will start to see rent increases this year,” said Mr. Olin, who at a recent conference heard that cap rates will soon start with a four and not a five.

It is also believed that real estate companies will be helped by a move to new global accounting standards that should mean an increase in net asset value.

Many analysts are also bullish. “The publicly traded commercial REITs in Canada have all reported healthy and stable operating metrics in the most recent quarter. For instance, operating income from the same properties was up by about 1.5% on a year-over year basis,” said Jimmy Shan, from GMP Securities. “Investors desire for yield plus cap rate compression were a big part of 2011′s performance.”

Denise Lones of the Lones Group prepared a case study forecasting 2012 predictions for Washington State. “I am predicting that the Washington unemployment rate could drop to between 7.5-7.9% in 2012 and the national unemployment rate below 8% by September..” speaking of the local dormant labor force, and the new developments in the Seattle region at Boeing, Microsoft, Amazon, and the new construction industry.

Mr. Olin, favoring real estate funds, puts it in these terms. ”Look for value. You have got upside and you have got a cushion on the downside if and when the world falls apart,” said Mr. Olin, who co-manages the funds with Frank Mayer, a veteran real estate analyst. As for downside protection, Mr. Olin says it comes provided stocks can be bought at 50¢ on the dollar in “terms of value.” These real estate assets “are bricks and sticks for which there are lots of buyers,” he said.

For more information on investing in real estate hedge funds, click here, or contact us to learn more.

With the holidays come the holiday shopping; bustling malls filled with great gifts, and of course, for those willing to get out of bed early, black friday deals available at the break of dawn.

Fortunately, technology has played an important role in commerce. Consumers benefit with online only deals, the ability to compare and match prices, and one click ordering for last minute shopping. For the discount shoppers, there are some great resources that will let you enjoy the experience of the retail store or mall, while comparing prices right at your fingertips. Of course, these tools require smart devices like the iPhone or iPad, Blackberry, or Droid. We’ve highlighted a few that will ensure a smoother shopping experience, and help you determine the best prices.

1. Redlaser: this application is available for your iPhone, iPad, and Android phones. While shopping, you can launch the application, scan barcodes of items and compare prices throughout Google, Amazon, and more. Want a better price? Just check it out! Want to buy later? Scan and save to buy when you’re ready.
2. ShopSavvy: another mobile application for iPhone and iPad users, as well as Android phones. This application is Redlaser’s newest competitor and allows users to scan products and compare prices with Google, Amazon, Walmart, Target, BestBuy, and BN.com to name a few.

photo credit: our friend Anya taking full advantage of the holidays!

Mobile shopping has empowered consumers to become smart buyers by making technology easy and useful, right at your fingertips. Possibly the best feature of the tools is the price – they are both 100% free!

Now your shopping experience can be a little more efficient and while you’re saving money, you can spend more time with our great friend Anya at one of our favorite Seattle based hangouts, Starbucks! You know that the holidays are upon us with their signature Christmas Blend coffee, holiday red cups, and seasonal drinks!

Here’s to the holiday season!

1. If you have a little leftover pumpkin in the can, and happen to be in need of gorgeous skin: Skip the jack-o’-lantern face and try a honey pumpkin exfoliating mask.
   

   Pumpkin Skin!

2. This rough recipe for a really good stuffed pumpkin comes from doriegreenspan.com. This recipe for cornbread-stuffed pumpkin with sauteed greens. No serving dish required.
   

   Stuffed Pumpkin!

3. Some may call it hedonistic, but slathering yourself in a luscious DIY pumpkin body butter made of pumpkin puree, coconut milk and cinnamon is as good for your skin as it is for your senses.
   

   Pumpkin Body Butter!

4. All those pies, pumpkin desserts and holiday cakes; all that dairy-ness! Go animal-loving with this  vegan pumpkin pecan pie.
   

   Pumpkin Pecan Pie!

5. Illuminated jack-o’-lanterns are kid-cute, DIY floating pumpkin candles are adult-cute.
   

   Floating Pumpkin Candles!

6. Harvest pumpkin soup with things like leeks, apples, and ginger–a blast of autumn in a bowl. Yum.
   

   Harvest Pumpkin Soup!

7. Sometimes you just need to have a pumpkin mask. Read about the spa treatment pictured at the Treats to Share blog, or use this super simple DIY formula for a vitamin rich pumpkin face mask.
   

   Pumpkin Mask!

8. Pumpkin biscuits. Try these from the Farmer’s Almanac, or this recipe for perfect pumpkin biscuits from James Villas’ Biscuit Bliss.
   

   Pumpkin Biscuits!

9. Martha Stewart has these directions for pumpkin pie potpourri, we’ve expanded on that with a DIY fresh-pumpkin air freshener
   

   Pumpkin Pie Potpourri!

10. Remove the top from pumpkin, scrape out slime and seeds, toss. Or, wait, don’t toss! Use the scraped pulp in soup stock or to feed the birds, and make this lip-smacking, bursting-with-nutrients snack: Slow roasted pumpkin seeds.
    

    Roasted Pumpkin Seeds!

11. It’s nice to know there’s a way to sneak pumpkin into chocolate cake. The best of all worlds? Chocolate pumpkin bundt cake. Mmmmm.
    

    Chocolate Pumpkin Bundt Cake!

12. A favorite at Empower, PUMPKIN CARVING PARTIES!!!


Pumpkin Carving!

Now for some fun… SMASHING PUMPKINS!!!

Surreal News.

An email from Apple CEO Tim Cook, to all Apple employees.

Team,

I have some very sad news to share with all of you. Steve passed away earlier today.

Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.

We are planning a celebration of Steve’s extraordinary life for Apple employees that will take place soon. If you would like to share your thoughts, memories and condolences in the interim, you can simply email rememberingsteve@apple.com

No words can adequately express our sadness at Steve’s death or our gratitude for the opportunity to work with him. We will honor his memory by dedicating ourselves to continuing the work he loved so much.

Jayson Burton, Empower COO: “Steve Jobs was one of very few people who could be called a legend in his own time. The college dropout co-founded Apple in 1976 and grew it into one of the most valuable firms in the world, while inspiring countless entrepreneurs along the way. Since its inception, Apple has been the model of Empower’s structure. The innovation, creativity, and strict committment to perfection will live on through Empower as he has inspired us to make a change in the world.”

Straight from his mouth

On Technology

“But it’s a disservice to constantly put things in this radical new light — that it’s going to change everything. Things don’t have to change the world to be important.” [Wired, February 1996]

On Design

“Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while. That’s because they were able to connect experiences they’ve had and synthesize new things. And the reason they were able to do that was that they’ve had more experiences or they have thought more about their experiences than other people.”

On Business

“Being the richest man in the cemetery doesn’t matter to me … Going to bed at night saying we’ve done something wonderful… that’s what matters to me.” [The Wall Street Journal, 1993]

On Life

“I’m an optimist in the sense that I believe humans are noble and honorable, and some of them are really smart. I have a very optimistic view of individuals. As individuals, people are inherently good. I have a somewhat more pessimistic view of people in groups. And I remain extremely concerned when I see what’s happening in our country, which is in many ways the luckiest place in the world. We don’t seem to be excited about making our country a better place for our kids.” [Wired, February 1996]

“No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” [Stanford commencement speech, June 2005]

Moving Commencement Speech by Steve Jobs. Stanford, 2005

Read what fans, friends, and leaders are saying about the passing of one of the most gifted visionaries, Steve Jobs.

Mark Zuckerberg, Facebook CEO: “Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you..”

Bill Gates: “I’m truly saddened to learn of Steve Jobs’ death. Melinda and I extend our sincere condolences to his family and friends, and to everyone Steve has touched through his work.

Steve and I first met nearly 30 years ago, and have been colleagues, competitors and friends over the course of more than half our lives. The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come.

For those of us lucky enough to get to work with him, it’s been an insanely great honor. I will miss Steve immensely.”

Barack Obama:“Michelle and I are saddened to learn of the passing of Steve Jobs. Steve was among the greatest of American innovators – brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it.

By building one of the planet’s most successful companies from his garage, he exemplified the spirit of American ingenuity. By making computers personal and putting the internet in our pockets, he made the information revolution not only accessible, but intuitive and fun. And by turning his talents to storytelling, he has brought joy to millions of children and grownups alike. Steve was fond of saying that he lived every day like it was his last. Because he did, he transformed our lives, redefined entire industries, and achieved one of the rarest feats in human history: he changed the way each of us sees the world.

The world has lost a visionary. And there may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented. Michelle and I send our thoughts and prayers to Steve’s wife Laurene, his family, and all those who loved him.”

Sergey Brin, Google Co-founder:“From the earliest days of Google, whenever Larry and I sought inspiration for vision and leadership, we needed to look no farther than Cupertino. Steve, your passion for excellence is felt by anyone who has ever touched an Apple product (including the macbook I am writing this on right now). And I have witnessed it in person the few times we have met. On behalf of all of us at Google and more broadly in technology, you will be missed very much. My condolences to family, friends, and colleagues at Apple.”

Dick Costolo, Twitter CEO:
“Once in a rare while, somebody comes along who doesnt just raise the bar, they create an entirely new standard of measurement.”

Reactions to the death of Apple co-founder, Steve Jobs has been remarkable. His inspiration and wake of success has been the motivation for many. We will all miss you Steve Jobs.

How much do you know about your team? The best managers, and the best teams, are those that function with high levels of Emotional Intelligence (EI). Whether your group is focusing on executing a simple procedure, or designing an innovative service, all teams go through four specific phases to function at their highest potential.

These phases are: Forming, Storming, Norming, and Performing. Teams that reach the performing stage are like dancers from the Royal Ballet- seamlessly integrating their diverse strengths into one cohesive power-performance.

Unfortunately, few teams spend the majority of their time at peak performance, and this is for many reasons. Often, members do not agree upon expectations, norms, roles, and/or fail to develop shared trust. Even exceptional groups need to maintain awareness of their team processes, to ensure their dynamics remain healthy over time.

The good news is developing high-performing teams is not expensive or mystical. Research shows that superior teams result from mature norms of constructive conflict, elevated standards of cooperation and trust, synergistic coordination, and a strong sense of group identity. In short, such teams play varsity in Emotional Intelligence. Let’s look:

• Forming: This is the stage of nervous excitement where team members are optimistic about their success in the group, yet cautious about committing themselves to a new tribe. Members tend to ask a lot of questions to determine what behavior is expected of themselves, what they can expect from their peers, and whether the costs of
  membership outweigh the benefits. More than productivity, this is a time of discovery.

  To accelerate this process managers should conduct an “assimilation” session, as pioneered by GE. The session should be lead with a facilitator present and the group manager absent. This creates a safe space for members to address their first
  impressions, concerns, hopes, and questions without managerial pressure. This feedback is then relayed to the manager with anonymity through the facilitator. Afterwards the manager can engage the team in an open dialogue of the issues, also sharing his or her feedback to the same questions. This kind of open dialoguing is;

• Storming: This is the most difficult period in a teams’ life cycle. Marked by interpersonal conflict and tension, members may proactively instigate conflict as they compete for various team roles. The teams that make it through this phase do so by learning to transform emotionally volatile conflict into engagements of active listening

  This paradigm shift is essential to Storming because it releases members’ insecurity from personal attacks on their self-esteem and resources. In exchange, the climate of relational conflict gives way to productive task conflict.

• Norming: This is the first time cohesion enters the scene. Until now, the group was a mere cluster of individuals. Beyond now, they are a unified taskforce of creative dreams and shared aspirations. Each person has finally accepted their own, and their peers’ membership to the group. This creates a sense of harmony as members begin to confide in one another and form friendships. Furthermore, peoples’ individual agendas
  are replaced by team norms, goals, and values.

  With their differences put to rest and common mental models in place, a spirit of cooperation takes over, allowing the team to produce their highest-caliber work yet.

• Performing: Paradise found. The team is now an efficient, resilient unit of common minds. You’ll know your team is Performing when their productivity and work-place satisfaction skyrocket. Characteristics of this stage include members understanding and complementing each other’s strengths and weaknesses, and insight into how to continue developing the team as a whole.

I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.

Jimmy Dean

Now, we can’t always expect smooth sailing, but an Emotionally Intelligent team can be counted on to respect their commitments, and eventually right their course. There is one caveat, however. As loyal as a team is to its peers, managers must be equally steadfast to the team itself. This means providing the appropriate training, resources, and compensation to equip and motivate their workforce. Once a team has those three things, and EI, there can be no challenge big enough to deter their- and your – success.

Elizabeth Joy Smith is studying business at the University of Washington. Elizabeth has a broad range of passions including entrepreneurship, behavioral economics, and finance. Between school, work, and her internships, Elizabeth pursues her favorite hobbies of trying new things, and meeting new people. Also, very important, her bicycle is named Seabiscuit.