Dually Licensed Lisa Jones
Dually LicensedForum Replies Created
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Mortgage rates continue to climb. Home prices have skyrocketed, and with the combination of inflation, historic high mortgage rates, and home prices at historic highs, many would-be homebuyers are priced out of the housing market. Many renters who have dreams of becoming homeowners are priced out of the housing market. Many home builders are sitting on inventory, especially in Florida, Texas, and dozens of states. How is the housing and mortgage market forecast for 2025? Are we nearing a 2008 financial and real estate market collapse? Foreclosure rates and bankruptcy numbers are peaking at an all-time high. Many car dealerships are going bankrupt. Many people voluntarily turn in their cars because they can no longer afford it. Can you please tell me what the Trump Administration has in mind to fix this major disaster that is about to happen?
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Thank you for sharing these updates! It sounds like there’s a lot happening in the mortgage and real estate markets right now. Would you like to dive deeper into any specific aspect, such as mortgage rates, real estate trends, or market activity? Or perhaps you have another question in mind?
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This reply was modified 3 weeks, 5 days ago by Lisa Jones.
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This reply was modified 3 weeks, 5 days ago by
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How have these deregulatory actions impacted specific industries?
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How do these deregulation proposals compare to those of previous administrations?
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Chicago Mayor Brandon Johnson will have major issues when Border Czar Tom Homan comes to Chicago to group up the illegal migrants and deport them. Chicago will be GROUND ZERO on illegal immigrants deportation says Chief Tom Homan. Brandon Johnson is hands down the most incompetent Mayor in the nation
Chicago Illinois is turning RED.
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Here’s a German Shepherd dog training video that is interesting. Talks about the importance of socialization.
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The mortgage industry has been experiencing political and economic turbulence, which has been shaping the world, as you mentioned in your discussion with us. Let us examine the core factors affecting the industry.
Rising Mortgage Rates
Effect: Rates surged from a historic low of around 2% to 8%, making it difficult for homebuyers to consider purchasing a house. Homebuyers are cautious about lending money against apartment loans and are focusing on owning many more properties for single buyers, which ultimately results in them holding off on the buying spree. Monthly payments have also surged, making it less beneficial and encouraging for buyers in the market.
Industry Issues: The low-rate business environment that ensured high activity levels revolved around refinancing has now collapsed. This caused many businesses providing mortgage loans to experience sharp decreases in their loan volume, and they had to resort to layoffs and consolidations.
Inflation
Effect: Consumers have found it difficult to maintain their household budgets due to inflation, which has made saving for a downpayment and paying their mortgage extremely challenging.
Industry Issues: The increase in demand for affordable housing due to inflation hasn’t faced any form of deprivation, such as lack of affordability. However, the demand is still high.
Pandemic Effects
Effect: The pandemic affected powering chains, labor markets, and the stability of economics, which caused the recovery to deviate from the standard. In addition, home prices boomed as home sales began setting new records.
Industry Issues: Although there was a boom in home sales and a desire to refinance due to the pandemic, there was a slowdown later on because the interest charges were high.
Home Values at All-Time Highs
Impact: While the increase in home values is advantageous to homeowners, it has discouraged numerous first-time buyers from entering the market. Loss in margins from increased borrowing costs has also made some investors withdraw.
Industry Struggles: As a consequence, the purchase volume has been negatively constrained, and the industry has relied disproportionately on high-credit borrowers, hence limiting opportunities for other lending estimations.
Political corruption and voter fraud allegations.
Impact: Economic instability caused by voter fraud allegations and political uncertainty can negatively affect consumers’ trust and disturb economic conditions, which can, in turn, negatively influence housing markets.
Industry Struggles: Political instability usually causes high volatility of the interest rate and the demand for housing, leading to greater unpredictability in the business and making it difficult to plan and expand.
Regulatory Changes and Scrutiny
Impact: Lending activity is being scrutinized more closely as governments and regulators finally start responding to the above challenges. Compliance costs have increased, further compounding the challenges faced by lenders.
Industry Struggles: Such changes may be difficult for smaller lenders and mortgage brokers, forcing consolidation in the industry.
The Mortgage aspect that we can be optimistic about
The aspects that we discussed that could pose barriers are, but the mortgage sector can still manage to go forward:
Demand for Non-QM Loans: Borrowers who couldn’t meet traditional lending standards are now taking out non-QM loans.
Home Equity Products: Rising residence values began to drive more home equity lines of credit (HELOCs) and cash-out refinances from homeowners with low fixed rates.
Innovation: Due to increased competition, lenders are using technology and AI on a larger scale to simplify processes, cut expenses, and attract new clients.
Forecast
The market is not collapsing. Rather, it is trying to achieve balance. Mortgage companies are relearning ways of functioning, expanding the range of products, and targeting new areas to seek balance rates with decreased demand and increased interest rates. Still, this process, combined with constant unstable economics, politics, or existence, could worsen the present conditions.
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Starting a marijuana business requires considering and analyzing the law, regulations, and industry. This business is highly competitive and continuously evolving. Countries around the world view marijuana differently than one another, as some have legalized its cultivation. In contrast, others permit medical and recreational purposes only to a certain extent. Three major requirements need to be kept underpass by an interested marijuana entrepreneur, which are as follows:
Know The Legal Requirements
From a broader perspective, every industry is regulated to some extent, and marijuana is no different. It operates on a regulation system implemented by the federal, state, and local authorities.
Federal Level
In accordance with the Controlled Substances Act, marijuana is listed as a Schedule One substance, making it illegal for federal use.
Although marijuana is illegal federally in the United States, a vast majority of states have initiated medical and recreational marijuana.
Local And State Laws
Suppose you are looking to set up a business. In that case, geography will play a critical role for you as different states have different laws. Some states allow recreational sales while others permit medical only; local governments, too, can impose restrictions, meaning you need to obtain licenses and follow zoning laws.
Select Your Mode Of Doing Business
The legal steps are out of the way; now it is time to decide the structure of your firm, which is a crucial step:
Cultivation
Start growing marijuana for medical and recreational use. To grow plants, knowledge of agriculture is a prerequisite, along with adhering to the state’s set limitations on how much can be cultivated.
Dispensary
You can start selling cannabis products. You will need a store location and go, government permission to conduct business. Just like any other business, cannabis dispensaries will be required to follow strict regulations regarding inventory, packaging, labeling, selling of marijuana, and most importantly, the age of the buyer.
Processing
Suppose you wish to make edibles, concentrates, oils, or topical products. In that case, you will need specialized equipment, internal standards, and external safety regulations.
Delivery Services
Delivers marijuana products to clients. However, before that, determine whether your state allows such delivery services.
Ancillary Businesses
Offering services in marketing, security, legal advisory, or even software solutions would fall under this category. Islamic law, which permits the marketing of marijuana products, prohibits these businesses from dealing directly with the plant anywhere, reducing the regulatory burdens.
Create a Business Plan
If seeking to operate in this region and still go ahead seeking potential investors, it would be wise to draft a business plan. It will need to cover:
Executive Summary
A section that articulates the goals of the business and its business model.
Classification of the Market
What is in most demand in the area, and who are the competitors? What are their characteristics?
The Operational Plan
An outline of how you intend to source, produce, and sell the products has to be provided.
Financial Plan
What are the expenses of starting the venture, the anticipated income, and what type of funding would be needed?
Compliance Strategy
Details of how the company will obtain licenses and comply with regulatory requirements will be required.
Secure Licensing and Permits
The Application Process.
It is usually competitive, and you need to write up several documents. Be sure to include any certificates relating to where the funding will come from, marketing and business plans, security protocols, and compliance.
Types of Licenses
Colonial farming license: lets an owner grow marijuana.
Dispensary license: Allows carrying out retailing.
Processing license: allows to make products.
Distribution license: allows for transportation and/or wholesaling.
Costs
The type of license purchased largely determines the costs, with some compassionate use cultivation licenses costing only a few thousand dollars and others costing hundreds of thousands.
Secure Funding
Remember that traditional loans are usually off the table due to federal restrictions. Instead, consider:
Private Investors: venture capital and angel investors are great options.
Cannabis-Focused Funds: Look into investment funds that only provide Capital for Marijuana Firms.
Partnerships: Work alongside already existing actors in the field.
Personal Savings: If you can, make use of your own money.
Build a Team
Employ individuals who have previous experience that would help you to run your firm:
Growers and Cultivators: Those with a degree or educational background in agriculture or horticulture.
Sales and Marketing Professionals: One of their main tasks is to attract and retain customers.
Compliance Officers: They must help ensure the business complies with the set regulations.
Legal and Financial Advisors: Those with a specialty and focus on the complexities of cannabis laws and taxes.
Find a Suitable Location
Zoning Restrictions: Most local authorities have different zoning criteria for communities without these businesses. These include schools, parks, or even residential neighborhoods.
Lease vs. Purchase: Find a location that is within the local laws.
Develop Strong Branding and Marketing
Engage a specific market in e-commerce by developing a brand that is yet to be based.
Contact customers through digital marketing, social networking, and physical events. (Note the useful strategy for you according to the restrictions that apply to advertising during the events at your location.)
Set Up Operations and Inventory Systems
Seed-to-Sale Tracking: A vast majority of states in the United States will require systems that track products from cultivated seeds to sale.
Point of Sale (POS) Systems: Select marijuana retail software.
Compliance Systems: This technology can also track sophisticated and specialized inventory, labeling, and other aspects of the reporting system.
Stay Compliant
Ensure that cannabis products are only sold in approved packages with the correct labeling and proper testing.
You must continually update your understanding of the ever-changing requirements.
Keep every detail diligently for audits and inspections.
Hindrances in the Marijuana Business as an Industry
Banking: Many cannabis-related businesses accept cash only because of federal restrictions, which makes them vulnerable. Cannabis businesses are subject to high taxation under IRS Code Section 280E because the law prohibits tax deductions on activities considered illegal at the federal level.
Regulatory Complexity: The legal status of the industry’s activities and operations is complicated, and constantly changing laws are in force and must be met.
Investigation of the Federal Legalization Avenues
Follow up on the developments in the federal sphere aimed at simplifying the relevant legislation, which could create further opportunities.
Resources and Support
NCIA: Provides materials necessary for the industry and opportunities to meet other industry leaders.
Local recycling and cannabis trade associations: Help individual states with education, politics, and news.
Online Education: For example, Green Flower and Marijuana Business Daily teach and give insights.
Establishing a marijuana business is very risky but potentially productive. The key to success is extensive research, followed by legal compliance and execution. Seeking help from legal and financial experts in this dynamic business is necessary.
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Comprehensive Guide to Flood Insurance
Flood insurance is a specialized type of property insurance designed to cover damages caused by flooding, which are not typically covered under standard homeowner’s or renter’s insurance policies. Below is a detailed guide covering who needs flood insurance, how it is regulated, and how to obtain it.
Who Needs Flood Insurance? Required by Lenders
Homes in High-Risk Flood Areas:
If you have a federally backed mortgage and your property is in a high-risk flood zone (Special Flood Hazard Area or SFHA), lenders require you to carry flood insurance.
Properties Outside High-Risk Zones:
While not mandatory in low-to-moderate-risk areas, it’s often recommended since approximately 25% of flood claims occur outside high-risk zones.
Voluntary Buyers
Homeowners Without Mortgages:
Even if not required by a lender, flood insurance is wise if your property is at risk of flooding.
Renters:
Renters can purchase contents-only policies to protect personal belongings in flood-prone areas.
Businesses
Commercial Properties:
Businesses in flood-prone areas should obtain flood insurance to protect against potential financial losses.
How Flood Insurance is RegulatedNational Flood Insurance Program (NFIP)
The NFIP, managed by the Federal Emergency Management Agency (FEMA), is the primary flood insurance provider in the U.S.
Coverage Limits:
- Residential: $250,000 for the structure and $100,000 for contents.
- Commercial: $500,000 for the structure and $500,000 for contents.
Private Flood Insurance
In addition to NFIP, private insurers offer flood insurance with higher coverage limits or more flexible terms.
Private flood insurance is becoming more popular as it can sometimes be more affordable than NFIP policies.
Flood Zones and Mapping
FEMA maps flood zones and assigns risk levels. These maps determine whether flood insurance is required and influence premium costs.
Property owners can access flood maps on the FEMA website to understand their risk.
The Process of Getting Flood InsuranceStep 1: Determine Your Flood Risk
- Visit FEMA’s Flood Map Service Center to check your property’s flood zone.
- Consult with local planning or building departments for historical flood data.
Step 2: Choose Between NFIP and Private Insurance
- NFIP policies are standardized and widely available but may have coverage limitations.
- Private insurance may offer customizable options and higher limits.
Step 3: Find an Insurance Provider
NFIP Policies:
- Purchase through an insurance agent or company participating in the NFIP program.
Private Policies:
- Contact private insurers specializing in flood insurance.
Step 4: Decide on Coverage
Building Coverage:
- Protects the structure and its foundation.
Contents Coverage:
- Covers personal belongings, such as furniture, clothing, and electronics.
Additional Riders:
- Some policies may offer extra protection for basements, landscaping, or other exclusions.
Step 5: Understand Costs
Premium Factors:
- Costs depend on the property’s location, flood zone, elevation, and construction.
Average Costs:
- NFIP policies typically cost between $700 and $1,200 annually, which can vary widely.
Step 6: Wait for Policy Activation
- NFIP policies typically have a 30-day waiting period before coverage begins.
- Some private insurers may offer shorter waiting periods.
Filing a Flood Insurance Claim
Report Damage Immediately:
- Notify your insurance provider as soon as possible.
Document the Damage:
- Take photos and videos of affected areas and items before beginning cleanup.
Work with an Adjuster:
- The insurer will send an adjuster to assess the damage and estimate repair costs.
Submit Proof of Loss:
- Provide a detailed inventory of damaged items and their value within 60 days (NFIP policies).
Receive Payment:
- Once the claim is approved, payment will be disbursed.
What Flood Insurance CoversBuilding Coverage
- Electrical and plumbing systems.
- HVAC systems.
- Appliances like refrigerators and built-in dishwashers.
- Flooring, walls, and ceilings.
Contents Coverage
- Furniture and electronics.
- Clothing and personal items.
- Portable appliances.
- Valuables up to certain limits (e.g., artwork).
Exclusions
- Damage caused by moisture, mildew, or mold not attributable to the flood.
- Temporary living expenses or lost income.
- Cars or other vehicles.
Benefits of Flood Insurance
- Protects against significant financial loss due to flooding.
- Helps comply with lender requirements.
- Peace of mind for homeowners and businesses in flood-prone areas.
Tips for Reducing Flood Insurance Costs
Elevation Certificates:
- Obtain an elevation certificate to demonstrate your property’s reduced risk of flooding.
Mitigation Measures:
- Install flood-resistant materials, elevate utilities, or use flood barriers.
Community Participation:
- Some communities offer discounts if they participate in FEMA’s Community Rating System (CRS).
Flood insurance is a critical investment for protecting your property from flood-related damages. Whether mandated or voluntary, it offers peace of mind and financial security, especially as climate change increases the frequency of severe weather events.