Finance Issues

         I have been researching and am interested in real estate, finances, and brokerage so I researched current events that are influencing and impacting these markets and professions. The real estate market has undergone significant ups and downs throughout the past decade and are continuing to have an impact on the market. In 2007 Congress passed the Mortgage Forgiveness Debt Relief Act that saved failed mortages of homeowners a huge tax break that would otherwise force them to pay thousands to the IRS (CNN).  At the end of this year this Act will expire and if Congress does not issue an extension this shall have major consequences for homeowners and the real estate market as a whole. Only recently the real estate market has improved and there has been stability in both maintaining ownership. If this does not get re-passed then this could mean another collapse of the real estate market resulting in foreclosures and the loss of homes (CNN). This could be potentially devastating. The only positive news is that not everyone would be affected and a lot of real estate owners are protected.  Currently the market in San Francisco is stable and is pretty evenly a buyer and sellers market.  The price trend is holding steady and there is lower inflation of prices than in previous years (RealityTimes).

            Financial markets have taken a slight hit after the reelection of President Obama. Wall street has seen losses in the stock trade and all of the major stocks, DOW, S&P 500,  and Nasdaq have all been down (BUZZ). This is a normal trend after presidential elections and nothing to lose sleep over. The market also has taken a hit due to Hurricane Sandy and the financial costs and aid that is being sent to New Jersey (BUZZ). Hurricanes and natural disasters can have a huge impact on local economies which in turn can have an impact on the nations’ economy if not taken care of in ample time. It is important to help rebuild infrastructure and the community devastated by the natural disasters so that the economy is not put on a hold, jobs can be created instead of lost, and the community can return stronger than it did before. Investments have slowed down yet again due to companies’ uncertainty of the outcome of the presidential election, so the companies withheld, and the market closed for two days for the hurricane. This led to investors pulling 1.8 billion dollars from the market (BUZZ). Only a small blip but one that was significant enough to be noticed. In other investment news 401k’s have hit record high numbers as Americans are pouring more into their savings than ever. This is a great sign and important for a healthy economy (Money). It’s a great way to plan ahead and avoids in a influx of loans should people face financial hardship. They will have something stashed away. Companies are also contributing highly into 401k’s as well.

            In the mortgage market things are proving to be steady and things are on the rise. Fannie Mae and Freddie Mac have both been increasing revenue with a recent profit of 2.9 billion in the 3^rd quarter (MortgageNews). This was nothing impressive, however they did not have to borrow more money from the Treasury. The biggest thing happening in the market right now is the push to get rid of excess inventory or properties in the market. This includes vacant homes and foreclosures.  Things are expected to continue to improve over the next couple of years (MortgageNews). This also helps get rid of weak investors and realtors that were having negative impacts on the market with high foreclosures and low return rates. This will help to ensure that the right investments are made and the people borrowing are able to maintain their payments. Other exciting news included Freddie Mac’s reduction of the refinance rate by 1.7% was the highest in history. Great news for homeowners to reduce what they owe and get better rates on loans (MortgageNews).

The Job Hunt

      For any student just receiving their degree in Finance, finding a job can seem like a struggle. In the current state of our economy employers are looking for candidates with experience and knowledge of the field outside of the classroom. That is why it's very important to make sure and intern at a company in the field you'd like to work in as a professional. By working as an intern you will learn more about the field and what this career will take to become successful. It will also help clear the fog on what you actually may want to do in the field as well. Interning will broaden your horizon of knowledge in the way you need to communicate with others, this is very important in the finance field because if a client thinks that you are saying something negatively or rub them the wrong way it can lead straight to a dead deal.
      Its also very important to have a fresh and up to date resume. Your resume should be professional and ascetically pleasing. Make sure to read over and edit your resume to steer clear of any typos or mistakes. Something else I learned is that your resume shouldn't be longer than one page. I know this because a was talking to a recruiter about how resumes and she told me when she is sorting through potentials, anyone who has a resume longer than one page she immediately tosses. Also stick to the main points do not over explain anything, just keep it short and sweet. Since I am a student I do not have an experience yet in the field. Therefor, instead of a work experience field I can create a related course work field. In this area I can explain any relevant course work I have taken in college to establish myself as a knowledgeable candidate. Another cool tip the recruiter gave me was to use key words that they are looking for in their potential employees. So if the employer is looking for a punctual  employee, you can go to Thesaurus.com type in punctual in the search box and it will come up with a number of similar words. I usually choose the word that stands out and relates to myself so I could use the word "prompt" in my resume. another way to make the resume ascetically pleasing is using a good template. The template should be clutter free, easy to read and have a good flow of information. A good place my teacher told me to find cool templates is on Pinterest.com. Its supper simple to make an account and after you do so just type "resume" in the search bar and it shall give you an abundance of templates to look through and use.
      Checking out the school employment center, ad's on Craigslist.com and making a profile on Linkedin.com are all great places to look for potential jobs. A recent article I read said Linkedin.com has over 160 million members worldwide! They are also have said to be growing at a rate of 2 per second, which makes it one of the fastest growing online place to meet people. The great thing about Linkedin is that it basically gives you an idea of the person before you even meet them and it can connect you to professionals worldwide. It is also very simple to use as well, all you need to do is create an account and then upload your resume. Super simple! And you are connected to tons of other professionals worldwide who can view your profile and maybe even offer you a job!
       Who you know is a significant factor in the job search as well. Think about who you know that can help you professionally. "Sixty to 90 percent of jobs are found informally- mainly through friends, relatives, and direct contacts. The U.S. Deparment of Labor reports that 63.4 percent of all workers use informal job finding methods," (CareerPlaybook). Networking is very important in the hunt for your dream job as well. "Current employees are among the best sources of referrals. Many firms reported 40 to 50 percent of their openings are filled by candidates referred to by staff members," (CareerPlaybook).  So think really hard you can help you get further in your career and start your networking there.

School Do's and Dont's

Over the course of my college career I have taken about 35 courses. I am a junior and thus far one of the most efficient courses I have taken would be my upper division business finance class. That is because in this class you are thought the basics of the financial calculator. This is very important for the field I want to get in because understanding the difference between a good and bad investment is crucial. I also learned a lot of finance jargon in this class as well. Before I wouldn't be able to tell you what APR or EAR stood for but now I do! That is very important in the professional world, no one wants to be the one in the meaning who dose not understand what things mean it also makes you seem less credible if you don't know your terms. But then there is the course geology I took in college as well. I didn't feel this was relevant for my major at all. I didn't feel it is important I learn to learn why volcanos explode, this isn't going to help me sell homes or study business reports. Another course that is efficient for my college career was my upper division information systems class. In this class I learned how to use excel and access. The reason I found it very relevant is because I will use this tool in real life to communicate with my clients and co-workers. Being able to design spreadsheets, charts and tons of other media at my fingertips is very useful and efficient.

"Money Sense"

           In the finance world there is a lot of communication. Much of your day can consist being spent reading and writing emails. To be a positive communicator when emailing the writer must always keep their audience in mind, this is because you don't  want to confuse the reader. Confusing the reader can cause them to be offend or lost which can result in a dead deal. Another aspect of emailing is also to keep up with a good response time; making sure the clients questions are answered in a timely manner is very important to the success of your business. (SimpleTips) This is a little website I found offering a number of tips on how to create an effective e-mail. But, some of the reasons e-mailing is a much more effective means of communication is because there is always a written statement so nothing can be forgotten or changed. By this I mean that in a e-mail the whole conversation is written out, if a date it forgotten the e-mail is always there to reflect on without being unprofessional and just forgetting.
Also is keeps a written statement of what clients are saying. by this it is much more easier to understand what they want and there is less confusion if say maybe some has a hard to understand accent.
             Finance also comes with the task of reading many business reports. These can be any sort of long tedious reading on the business report of a certain corporation, even looking over charts for how the stock price for a certain corporation has been fluctuating. I know that my mother always told me it is important to study your business environment . She is in real estate and the reading she does on her business environment helps her be able to value homes more precisely. Another aspect would be to read the facts and information about a company to see what their goals and values are. This is because no one wants to blindly invest in a company without going to these main facts.

              Reading online or printed professional finance magazines are very relevant to my job as well. These magazines like Kiplinger's, The Economist, MoneySense, Forbes, Money and many others are very beneficial to my knowledge. They help by giving the reader an update on the environment around them and all over the world, they discuss new and upcoming topics that have major and subtle effects of the spending habits of individuals, corporations and the world. You can also learn about the internal growth rate of certain companies and use this as a gear to expand your clients portfolios. So there are a number of sources of reading and writing that play a large roll in the world of finance. By fine tuning these reading and writing processes a professional would create a positive affect on their business and its productivity.

Real Life Dreams

            As human beings we strive to emulate those around us; friends, family, and role models. The most important of those role models being our parents. They teach us everything we know from a young age, values and life lessons that we incorporate into our own lives. After years of watching my mom work in real estate I quickly developed an interest myself. Watching her sell homes and deal with clients on a regular basis led me to want to learn more, with intentions of going in to the business. After I graduate with my degree I plan on pursuing my real estate license and following in my mother’s footsteps. So I interviewed her to get a closer look at what she does, because real estate is much more than just showing and selling a home.

            One of the biggest misconceptions about real estate agents is that they are only working when they are selling a home or showing clients new listings. There is a lot more at play than just that. It is my mom’s job to be constantly aware of how the real estate market is developing and changing. Her clients rely on her knowledge of the market so that they can make a smart decision when purchasing a new home. She needs to know whether it’s a buying or selling market, what homes are for sale, and changes in price. So every morning when my mom heads into her office, after checking voice and emails, she directly goes to the MLS. This stands for Multiple Listing Service and is a real estate agents’ holy grail. This website shows all of the real estate listings in a particular area including the price, details of the property, and how long the listing is active. By using this my mother is able to all the homes for sale and make decisions on what homes to show her clients. She constantly is checking the MLS to see price reductions and the time a house has been sitting so that she can let her clients stay in the loop. If she didn’t a potential house that she wanted could slip away.

            After browsing the MLS and finding potential homes, then the real footwork begins. Seeing a house on a piece of paper is much different than experiencing a home in person. So its my mom’s job to go see these potential properties before she even shows her clients. She will drive out to each of the homes and make sure they would be a valid option. This requires a lot of driving and time. My mom was telling me on numerous occasions how she has shown up to properties and the other real estate agents were no shows. Many people don’t realize the amount of effort real estate agents put into finding the right house. Once she has found numerous properties to show, then she informs her clients and plans a time to show the homes.

            Real estate agents are all about interpersonal relationships. Building a trusting relationship with your clients is essential to this business. After all its very personal and purchasing a home is a major decision. The first and foremost most important goal is keeping your clients happy and finding them a home, not the potential commission. My mom constantly keeps in contact with her clients so that everyone is on the same page and they feel that their needs are being heard. If there is no communication then it could lead to issues in terms of purchasing a home. When my mother deals with clients, the relationship and work doesn’t end when they say goodbye for the day. My mom constantly keeps them in mind by checking the MLS and finding the best options. They are her priority and my mom pours everything she has until they are settled in their dream home. My mom knows details about her clients lives and cares which creates a significant bond. Clients are number one and their satisfaction is what matters most. My mom even takes them out for lunch when they are seeing homes or will bake and bring them what she made. She spends money out of her pocket before even getting paid.

            Once the home has finally been chosen my mother then has to close the deal, which can be one of the trickiest parts. She has to sit down with her clients, discuss what they want to pay, then draft an offer to present to the listing agent of the home. Sometimes this can be a fast process, other times not. Once the offer has been submitted my mom then waits for an acceptance or a counter offer. A counter offer is when the sellers of the home doesn’t accept the original offer, so they revise the offer to something more suitable for them. Yet again this can continue for a while until one party makes a decision. This doesn’t always end with positive results. If neither party accepts then the home stays on the market and my mom loses her potential commission. All of that hard work and effort to find the home, money spent out of pocket, and then no commission. It can be a frustrating field but my mom finds it to be fun and rewarding regardless. After interviewing my mom I have an even stronger drive to become a real estate agent.

Blog Reviews

Blog #1 Oblivious investor

(ObliviousInvestor)

The Oblivious investor blog is a blog that shares tips and information on low maintenance investing for the average investor. The blog has a general theme of investing your money in a smart manner, with a diversified portfolio, low returns, and the means to have confidence investing. This blog emphasizes the use of stock indexes in order to maximize profit and potential when investing in stocks and bonds. If one were to individually research each company before investing in them, not only would this be extremely time consuming, but it would also lead to a less diversified portfolio. The blog gives a lot of tips for safe investing, including choosing bonds over stocks. It might have a lower return but bonds are much safer and more stable in the long run. I liked this blog, it stayed within the genre it was supposed to, and gave clear information and tips for the average investor.

Blog #2 Studenomics

(StudyEconomics)

Studenomics is pretty self-explanatory. College students have been notoriously broke and dumb with their money. Mostly because there was no one ahead of them to show the way. College students are expected to go out and learn on their own. Sometimes, this can be counter-productive. This blog helps college students plan and become aware of their financial surroundings. One article I particularly like described what one could expect of each year of college and what one must accomplish in order to succeed and survive. The article talks about how freshmen year its wise to figure out career interests and then to find a mentor in said interest. By senior year it is important to be finishing your internship and planning your first career move after college. It’s a very helpful blog and sheds light on the fact a lot of students struggle in college due to poor financial planning.

Blog #3 Punch debt in the face

(PunchDebt)

This blog was probably my favorite. This blog helps share insight into a problem that plagues many Americans, debt. The author reveals the importance of constantly checking and rechecking bank accounts. This is important to not only track your spending, but is also important so that you know the balance of your accounts and can make sure one account isn’t inflated over another. Planning is another major component of debt management and having a goal each month can help eliminate stress and debt at the same time. I like this blog because you can really connect with the person writing the blog. It makes you feel comforted knowing that many other people face the same issues, and there are solutions.

Insight to Finance

Throughout my childhood and into my teenage years, I have had the opportunity to watch my mother operate in the fields of real estate and finances, particularly loans. On many occasions I helped my mother with these transactions and had a first hand look into how the business world operated. Numbers and business deals caught my intrigue from a young age and is a major factor of why I choose finance for my major. In the upcoming year when I graduate, I plan on entering the field of corporate real estate or potentially handling mortgages at a bank maybe even an entry-level analyst position! The best part of finance is closing the deals because that is when you get the check. And your commission is usually based upon a percentage to the total amount.
                   There are also many other jobs to pursue in the field of finance. Finance opens up a variety of work options and career paths after college and is a huge factor as to why I choose this as my major. After obtaining work experience and knowledge I then aspire to opening up my own brokerage firm. The other great thing about the finance field is that there are many opportunities to create your own business. I found this attractive because I would love to work for myself. You can make your own hours , hire staff that reflect your business model and ideals and even work from home! By owning my own business I will be able to manage myself and hopefully push me towards the level of success I hope to achieve. Our society, the world, the economy relies on business so I feel that my choice as a finance major is perfect. Another super cool link I found online gives you six simple steps to follow for creating your own finance business from the ground up (StartUpBusiness). In this portal you can search and find jobs in the field who are hiring! Finances are an essential part of ones everyday life so, even if you don't want to go into the finance field it's important to make smart spending decision.
              I also found an awesome web sight that can give you much more information about all kind of jobs in the field, (CareersInFinanceWebsite). The website offers a couple of other perks. One is that they also have a ton of blogs and other financial information from professionals working in the field. Another wonderful aid they provided was a job search section (JobSearch). I plan on finding my first job in the city f San Francisco! One reason is that majors in the finance field make a little over thirty percent more in their salary than most places elsewhere in the United States, so consider taking this into consideration when looking for your job as well. Another great idea would be to search Craigslist, Monster, CareerBuilder, SnagAJob, Indeed and many other aids you can find online. It  is also a smart idea to create a Linkedin.com account to connect to other working professionals. Linkedin.com is like a Facebook but, the kind you'd use to find a job.
But, where ever your career path takes you in life always make sure to do the right thing. Not what may be right to you or your co-worker but, what you would do if your mother was watching you. Another piece of advice I also have to offer is choose a career that will make you happy. Do not get stuck in a career choice that you dread because most likely this is going to be the job that pays the bills and you will be stuck for the rest of your life.  Life is short do something you will find enjoyable and interesting!