IF YOU THINK THAT'S BIG, TRY THIS

If you're in the real estate or related industry, you probably have a smart phone. Blackberry, Treo, something that accesses the internet, has a full keyboard, does it all. Many Realtors now have smart phones that are their Supra key.

Have you ever marveled at one of these little hand held devices and remembered what it was like fifteen years ago? How much like Star Trek are these little things?

They're going to get a whole lot more complex, and a whole lot faster than you may think. In another four years, what we'll be buying will seem far more like a Star Trek tricorder than what we're using now. You have seen the billboards for "3G wireless networks" - welcome to 4G.

Now, if you go to that linked article about 4G and can read it and understand it, you're probably a physicist or something. I looked at it a few times and boiled it down to this:

* None of the phones we're using now will work at all in about three years
* What we're just now starting to get used to - streaming video on our handheld, slow and clunky internet, navigation on our handhelds - is merely a baby step compared to the 4G devices that we'll see awfully soon
* The only thing that will hold a 4G device back is the screen size. There will be some 4G handheld devices that will have more computing power than the laptop I'm writing this on - and you can use it to stream movies, work at your desk, or in replacement of the stereo system and navigation system in your car through wireless Bluetooth-like technology and full sized monitors/keyboards.
* South Korea has already re-wired their wireless networks to 4G and is rolling out the products - this is not speculation, it is coming more certainly than the inaguration on January 20
* In another five years or so, your new car will have a video screen, and a power/cable plug for your 4G device, which will be the video/audio/satellite radio/navigation system/trip computer/telephone for your vehicle. If you rent a car, you'll have your normal and familiar functionality with you.
* No more laptop cases, no more lugging your eight pound device around. No more desktop computers. Monitors, keyboards and pointers (commonly called a mouse) with a power port will be the work stations of the very near future. This alone will massively reduce electrical consumption.
* You'll never have to miss your favorite TV program ever again!

Well, Lieutenant Uhura, get me Star Fleet on the comm!

What to do with this information? If you're challenged by your Blackberry NOW, take a class about them at HCC or something! The train is whistling to leave the station, and your competitors (who can handle this massive technology shift) will be aboard!

JUST ONE MORE THING YOU SHOULD KNOW ABOUT THE REAL ESTATE BUBBLE

I think I've made this clear before - this wasn't because of the current administration. It takes a Village, and in this case, we'll now be thinking of them all as Village Idiots.

We've talked about predatory lenders, greedy Wall Street brokers, and loose lending regulations. How about the tax code? For a truly perfect bubble, you need favorable tax treatment OR loose regulations - and we had them both.

If you've always loved Ayn Rand's philosophy as expressed in "Atlas Shrugged," you should consider this a full refutement of that philosophy by its grandest champion:

"I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms."

Alan Greenspan, former Federal Reserve chairman

Big changes on the horizon

The Federal legislation that gives us SAFE (National Mortgage originator licensing) is going to go into effect on January 20, 2010. If you're one of those who won't be able to retain or be licensed after that date, now is the time to start planning your new career.

Virtually everyone who has a license now will have to re-test, re-qualify and be certified under the new standards, even though they are not as stringent as the Texas standards were already. Anyone who was grandfathered in at the beginning of Texas licensing will now have to pass the state exam for the first time.

These standards will apply to EVERYONE, whether employed by a Federally chartered bank, mortgage bank or mortgage broker. After January 20, 2010, anyone that's working with you originating a loan will be licensed to the uniform standard.

Can I have just one more hit off the credit bong, please?

Well, the Fed has thrown up their hands and said "Here, just take the damned money!" They've depressed interest rates again to a level that is almost as low as what we were seeing three and four years ago.

How low? Try an average of 5.19% 30 year fixed. That means that some lenders are offering 30 year fixed loans in the high 4% range.

Well, whoop it up, right?

Not exactly.

Here is a short list of people/scenarios which can no longer get loans:

* Stated income
* More than four mortgages including husband and wife together
* Non-warrantable condos
* Condos that are not FNMA/FHA compliant
* Neighborhoods with more than 10% foreclosed units
* Credit scores under 680 (FNMA) or 580 (FHA)

I'll tell you, this list is going to have people bellowing "oh, but I know I can do such and such."

And, they may be right. They could have very well done so. However, it's going to take the right borrower, the right property and the right lender to get those things done. If you're looking at a scenario where the proposed borrower is one of these things, get a back up contract at the very least. If you're a borrower with one of these situations, find a TERRIFIC mortgage broker and get fully approved FIRST.