Archive for the 'Real Estate Financial Knowledge' Category

Zephyr Hosts a Free Seminar for Clients with Real Estate Attorney! Get your questions answered.

6 Ways to Beat the Stress of San Francisco Home Buying Part 2: Be Flexible and Realistic

Be Flexible and Realistic.

Use conservative monetary calculations. Make sure you have a little extra money to work with, just in case. In the San Francisco home buying market, anything can happen between contract acceptance and closing. It could be the inspections reveal areas of concern that the seller in unwilling to fix (and that you are okay taking on) or repair costs are higher than the amount negotiated in the contract.

OR, the interest rate changes before you have locked in your rate, affecting the necessary down payment and closing costs. Your real estate consultation (myself or someone else), will strive to tie up loose ends as quickly as possible, but remember that nothing is perfect.

Most buyers feel a bit overwhelmed when taking on a mortgage and the responsibilities of a new home. I’ve seen many buyers get angry when it seems like the cost just keeps going up.

(Of course, if you are too financially conservative, you won’t be able to become a San Francisco homeowner. Be smart but be realistic. If you are waiting for 20% down, a year’s worth of income reserves, and the ability to afford a 30–year, fully-amortized loan, you may be waiting forever! Not to mention, that this is not the best long-term wealth-building approach but that’s another story! For now, just think about having great credit, 5–10% down payment, and at least 3 months of savings in reserve.)

Anger is caused when reality doesn’t match expectation. If you anticipate potential pitfalls and extra costs in advance and keep your expectations in check, you won’t need to get angry. You will hope for the best, prepare for the worst. In fact, the process will likely go more smoothly than you expected.

You’ll notice how I over-estimate the potential problems for just this reason. Your transaction may be seamless, but just in case, you’ll be ready to tackle any issues that arise!

(The same holds true for escrow time lines. Please, for your own sake, do not schedule the movers for the day of close or even the next day! Put wiggle room in your calendar for unforeseen events. There are many, many people involved in your home purchase who can potentially cause a delay. It’s not the end of the world when you’ve planned for a delay. It can feel like it when you’ve lost an unrefundable moving deposit!)

How Foreclosure Can Happen in San Francisco

Want to hear a NIGHTMARE from the field? Here’s an example of what can happen to you without the right representation…

Joe* was renting a fancy South of Market Loft back in 2004. One day, he came home to find a letter from his landlord saying that he was going to sell the loft and Joe had to move. Since most lofts are not under San Francisco rent control, it was true that he would have to move. Joe not only lived in his loft but also conducted his business out of it. The letter also said they landlord would be willing to sell the loft to Joe….

Why not? He knew the San Francisco real estate market was in the midst of a boom and all of his neighbors were selling their lofts for a great profit. Being self-employed, Joe did not have verifiable income or many assets. His credit was great so he was able to secure 100% financing NINA loan (No Income, No Asset). So what, if the loan had much higher interest rates that were only fixed for 3 years…the market was booming and his loft will appreciate.

And so, Joe bought his place. What’s the problem, you ask? It’s now 2007, and Joe’s interest rates are about to adjust. He can no longer qualify for a refinance because lending guidelines are stricter. Still without verifiable income or assets, Joe is stuck with his current loan. His current loan was already about 2% HIGHER than the typical loans and is about to jump up, A LOT. He can no longer afford to make the payments.

Okay, so he can sell the loft, right? Well, not so fast. Joe and his landlord conducted the sale privately, without benefit of Realtor representation or a sale on the public market. You guessed it! He paid WAY too much for his loft back in 2004. Instead of allowing a real estate professional to analyze the price for the listing and then letting the public make the final decision, Joe’s landlord set the price. Naturally, he inflated the price to his benefit.

2004 was the peak of this current market cycle. 2007 is at or near the bottom. Joe’s loft has not appreciated past the inflated price he paid. It was not worth what he paid then and it is not now. Joe cannot sell for a profit. In fact, he cannot sell for a break-even. This will be a loss and potentially, a big one.

The moral of the story: Capitalism works publicly for a reason. Buyers decide the value of a commodity, whether a stock or a house. By enlisting a trusted advisor and purchasing a publicly marketed home, you protect yourself. Allow the market to determine the value of your home, not the owner.

Of course, markets go up and down so it’s certainly possible to have your home’s value go down even if you paid the right price when you purchased. But just imagine how much worse it can be if you had paid even more than your home’s worth at the peak of the market…

*Names & details have been changed to protect the innocent.

5 Powerful Homebuying Strategies for San Francisco Homes, Lofts, Condos, & TICs: Part 5

Find a Real Estate Consultant (a.k.a. Realtor)

It is most essential for your safety and success to hire your own Realtor representation. Whether you are interested in my services or not, I encourage you to interview and choose a consultant you feel comfortable with and enlist that agent as your “Buyer’s Agent”. When you work exclusively with a Buyer’s Agent, you become a client with all of the rights, benefits, and privileges created by this agency relationship.

You are no longer just a shopper. You are an appreciated client. When an agent hears of a great buy, who are they going to call? Her client with whom she has an established, trusting relationship or a stranger who just called on the phone and said, “keep your eyes open for me, would ya?”

“Great deals” go to those people who are committed to working with one agent because they find out about them and have someone ready to negotiate them into contract.

Aside from getting a value on your home purchase, you also get immeasurable support and guidance from your Real Estate Consultant. Buying or selling a property is an important and significant decision in your life with many financial and legal consequences/obligations.

You deserve to have the best counsel at your side.

Want to hear a NIGHTMARE from the field? Here’s an example of what can happen to you without the right representation…

Joe* was renting a fancy South of Market Loft back in 2004. One day, he came home to find a letter from his landlord saying that he was going to sell the loft and Joe had to move. Since most lofts are not under San Francisco rent control, it was true that he would have to move. Joe not only lived in his loft but also conducted his business out of it. The letter also said they landlord would be willing to sell the loft to Joe….

Why not? He knew the San Francisco real estate market was in the midst of a boom and all of his neighbors were selling their lofts for a great profit. Being self-employed, Joe did not have verifiable income or many assets. His credit was great so he was able to secure 100% financing NINA loan (No Income, No Asset). So what, if the loan had much higher interest rates that were only fixed for 3 years…the market was booming and his loft will appreciate.

And so, Joe bought his place. What’s the problem, you ask? It’s now 2007, and Joe’s interest rates are about to adjust. He can no longer qualify for a refinance because lending guidelines are stricter. Still without verifiable income or assets, Joe is stuck with his current loan. His current loan was already about 2% HIGHER than the typical loans and is about to jump up, A LOT. He can no longer afford to make the payments.

Okay, so he can sell the loft, right? Well, not so fast. Joe and his landlord conducted the sale privately, without benefit of Realtor representation or a sale on the public market. You guessed it! He paid WAY too much for his loft back in 2004. Instead of allowing a real estate professional to analyze the price for the listing and then letting the public make the final decision, Joe’s landlord set the price. Naturally, he inflated the price to his benefit.

2004 was the peak of this current market cycle. 2007 is at or near the bottom. Joe’s loft has not appreciated past the inflated price he paid. It was not worth what he paid then and it is not now. Joe cannot sell for a profit. In fact, he cannot sell for a break-even. This will be a loss and potentially, a big one.

The moral of the story: Capitalism works publicly for a reason. Buyers decide the value of a commodity, whether a stock or a house. By enlisting a trusted advisor and purchasing a publicly marketed home, you protect yourself. Allow the market to determine the value of your home, not the owner.

Of course, markets go up and down so it’s certainly possible to have your home’s value go down even if you paid the right price when you purchased. But just imagine how much worse it can be if you had paid even more than your home’s worth at the peak of the market…

*Names & details have been changed to protect the innocent.

 

 

5 Powerful Homebuying Strategies for San Francisco Homes, Lofts, Condos, & TICs: Part 4

Don’t Be Pushed Into Just Any House…

Your agent should show or highlight every property available that meets your requirements. Don’t make a decision on a house until you feel that you have seen enough to pick the best one.

For some people, this means seeing 5 properties while for others, it means 20.

Just be aware that San Francisco is a competitive and active market. If you wait too long or are too picky, you may very well lose the right home for you. Often, it takes more than one offer on a house to be accepted. As one client of mine, who learned the hard way how to make decisions quickly, “It’s San Francisco. The market just won’t wait for you!”

I believe strongly in clear intention. If your financial, emotional and psychological needs are in alignment, you will achieve success quickly. My clients are often amazed by how quickly & easily it all happened for them. I’m not.

The reason they achieve their goals is because they are in alignment with them.

When someone has been looking to buy a home for months or even years, I will bet you that something else is going on. It’s not that they haven’t seen anything that would work. Maybe it’s that they think the market is always about to tank & are waiting for that unicorn (aka, secret San Francisco real estate steal)? Maybe they have champagne tastes on a beer budget. Maybe they have the money but just aren’t ready in their heads and hearts to be home owners. Procrastination is a strong beast and we do it so easily.

If you say what you mean and mean what you say, you can make it happen. Get educated about the process up-front. Know what you want and what you can afford. Look only at appropriate properties to get a true sense of what your $ buys you in San Francisco. Be ready to pull the trigger. And voila, you, too, can achieve your real estate goal.

Mortgage Crunch & What it Means for San Francisco Buyers

Right now, there are a lot of headlines a lot regarding the mortgage meltdown. What’s hype, what’s not?

In general, I stick to my usual soap box of don’t believe everything you read and proceed with rational observance b/c “If it bleeds, it leads.” (In case you are wondering, I welcome you taking my opinions with a grain of salt too! I am educated, aware, and in the trenches though I certainly don’t know it all and am only one person with an opinion.)

What’s happened?

In summary, rates are volatile right now and the qualifying criteria for home buyers has gotten stricter, much stricter, in a very short period of time. This does not affect the majority of borrowers around the US, i.e. those looking to borrow within the “conforming” loan limits ($417,000 and under).

Obviously, with Bay Area home prices, it affects us locally b/c most home buyers are seeking “jumbo” loans.

Plus, all stated income loans have gotten much harder to get. This too affects the San Francisco housing market because so many of us use stated income loans to qualify, especially first-time home buyers.

What does it mean?

First of all, this tightening of credit has been swift and severe. Most of us anticipate loosening in the coming days, weeks, and definitely months as lenders see the opportunity to make deals and jump back in the game.

Second, it means that some of you will have a harder time making home ownership happen right now. And, I do mean right now. Things are changing daily so it’s best to stay calm and stay tuned.

Third, it means that those of you who are able to make home purchases will be able to secure great deals right now. And, again, I mean right now. Things change quickly.

If you have a down payment, can document your income, and have good credit, BUY, BUY, BUY. A large bulk of the local San Francisco competition is temporarily gone so you can get into a property for a relative steal at this moment.

I truly expect the situation to correct itself very soon. I also do NOT expect a run down in San Francisco home prices. Right now, there are deals to be had, for sure. This is especially true in the condo market.

BUT, sellers are not giving away their homes for pennies on the dollar. Yet, they may be willing to negotiate on price and even buy down your interest rate to get the deal done.

What to do?

Make sure your mortgage broker and Realtor are savvy and aware of what is going on now. This is not the time to go discount. It is the time to have a team of experts around you!

If you are pre-approved, go back to your mortgage broker and make sure you understand current pricing and whether or not your situation has changed.

If you are selling your home, look into a seller rate buy-down. The cost of the buy-down is soooo much less than any price reduction! Get the sales price you want with this savvy move.

Talk to your Realtor (me or whomever it is) and ask them how they can be creative to get you the property you want at a great deal. Do they know how to negotiate rate buy-downs for you? Do they read the financial papers? Do they know how to protect you while you are in escrow.

Get out there and look at homes. The timing is absolutely excellent for those of you who have the money, credit & income to buy.

Times have changed and we are going back to basics. San Francisco will always be amongst the MOST desirable places to live. A couple weeks or even months of lending distress doesn’t change this so go-ahead and be a “have” rather than a “have not.”

Got a question? Please let me know…

Resources:

Today’s Chronicle Article: Mortgage crunch hits Bay Area hard because of jumbo loans

So you wanna own a rental property in San Francisco?

Generally speaking, it is wise to begin with owning your own home. So, if you are set on acquiring your real estate empire, start at home…literally. However, after that, it is wise to consider diversifying your portfolio. Smart rental homes are a great investment for the long-term.

Right now, it is a great time to get into the rental market here in San Francisco. Certain areas are booming like the good, ole days with crazy over bids and multiple, non-contingent offers. Yet, other areas that once were hot have cooled down and offer savvy buyers an opportunity. For example, certain lofts, condos, and TICs are lingering just a little longer on the market and the sellers are getting antzy. Many of them have already purchased their new homes and have to get out of the double-mortgage situation. Pressure’s on and you can benefit. The truth is that most of these owners will do quite nicely, even with the slower market. Lofts, condos, and TICs have appreciated greatly over the years so their profits are nothing to cry about. That said, this is a market that is more cyclical than the single family one typical is… Lofts will be hot again so why not buy when it’s actually possible to get a decent $/SF?

This strategy also rings true for those of you who are renting and want to buy your first San Francisco home. Either way, it’s a great time to get into the market.

Bob Bruss wrote this article for Inman News on the benefits of owning rentals. I think his writing is both informative and easy to digest. Take a peek below…

Pros and cons of owning rental houses

---

A closer look at investment purchases

Friday, July 06, 2007

By Robert J. Bruss
Inman News

What is the best investment you ever made? Common stocks? Bonds? A small business? Your house? Other real estate?

Chances are your most profitable investment has been your personal residence. If you have yet to purchase your own home, today’s “buyer’s market” is an excellent time to do so.

However, if you already own your house, why not take advantage of current market conditions to buy one or more houses as rental investments? Let your tenants buy those houses for you by using their rent payments to pay the mortgage and other expenses.

Purchase Bob Bruss reports online.

WHY BUY RENTAL HOUSES? Realizing that profitable rental houses (and most other real estate investments) are long-term investments for at least five years, consider the advantages of such investments.

Your list of benefits will likely include probable appreciation in market value (although the home sale market is “flat” in many cities today), income tax shelter, maximum leverage to control the property with little cash, tax-free and tax-deferred sales benefits, and pride of ownership.

Yes, there are possible rental-house disadvantages unless you carefully qualify tenants before they move in to ensure they pay the rent on time and won’t “trash” your property. But sound property management techniques minimize this risk and hold repair costs down by providing tenant incentives to avoid damaging your rental houses.

HOW TO GET STARTED BUYING RENTAL HOUSES. The easiest way to acquire a sound, well-located rental house is to buy one as your personal residence.

That might sound unusual. However, the key reason is buying your own home for owner-occupancy is the simplest way to purchase for little or no cash on the most affordable mortgage finance terms.

After owning and living in your home for a few years, perhaps fixing it up to add market value, then you can convert it to a rental house and move on to another house purchased the same way, eventually establishing a portfolio of rental houses.

Or, thanks to the tax magic of Internal Revenue Code 121, after living in the house at least 24 months and then moving out to rent it to tenants, you will have up to 36 months to decide if you want to keep the house as a rental or sell it and claim up to $250,000 (up to $500,000 for a qualified married couple) tax-free principal-residence-sale profits.

THE FORGOTTEN RENTAL-HOUSE TAX-SHELTER BENEFITS. Most prospective rental-house investors realize these properties can provide income tax benefits, but they are often hazy as to the details.

Thanks to the unusual benefits of the depreciation tax deduction for estimated wear, tear and obsolescence, most rental houses show a paper tax loss. The reason is that depreciation is a noncash-expense tax deduction, which requires no actual payment, as is necessary for mortgage payments, property taxes, insurance and repairs.

Current tax law allows depreciation deductions for rental properties over 27.5 years. Commercial properties require a 39-year depreciable useful life.

For example, suppose you buy a $250,000 rental house, allocating $50,000 to the nondepreciable land value. Dividing the $200,000 cost of the structure, each year for 27.5 years you can deduct on Schedule E of your income tax returns about $7,300 without having to pay in cash even $1 for any actual depreciation expense.

The likely resulting tax loss from the rental house, after paying the operating expenses from the rental income, is deductible up to $25,000 annually if your adjusted gross income (AGI) from other sources is less than $100,000. Between $100,000 and $150,000 AGI, the amount of deductible rental-property loss gradually declines.

But any unused rental-property tax loss can be “suspended” and saved for use in future tax years or when the property is eventually sold.

UNLIMITED DEDUCTIONS FOR REALTY PROS. However, “real estate professionals” can claim unlimited property-loss deductions from their other ordinary taxable income. If you spend at least 750 hours per year (about 14 hours per week) on your real estate activities, you may qualify for unlimited Schedule E deductions from your rental houses and other realty investments.

A real estate sales license is not required. Full-time real estate investors, property managers, builders, contractors and leasing agents can qualify. Either spouse is eligible.

For example, suppose a married physician earns $500,000 AGI. Normally, he would not be entitled to any Schedule E tax loss deduction from his rental houses because his AGI exceeds $150,000. However, if his wife manages their properties and she spends more than 750 hours annually supervising those investments, making management decisions, inspecting properties for possible purchase, and supervising sales and exchanges of their properties, they can qualify for unlimited “real estate professional” deductions on their joint income tax returns.

AVOID TAX WHEN SELLING YOUR RENTAL HOUSES. If you quickly buy and sell rental houses or other real estate after fewer than 12 months of ownership (called “flippers”), your capital gains will be taxed at ordinary income tax rates up to 35 percent plus state taxes.

However, if you own the property more than 12 months, then the maximum federal capital gain tax rate is currently only 15 percent, plus state taxes.

But various tax-avoidance methods are available to cut or eliminate these taxes. In addition to the principal-residence-sale tax exemption of Internal Revenue Code 121 (if the house was owner-occupied to meet the statute’s requirements), tax-avoidance consideration should be given to tax-deferred exchanges and installment sales.

Also, remember that any unused annual property-tax losses from rental properties are “suspended” for use in future tax years or when a property is sold. Your tax adviser can provide full details.

Personally, I have sold several rental houses at considerable profits with no tax due because my suspended tax losses sheltered my capital gains from taxation. More information is available in my brand-new special report, “Pros and Cons of Investing in Rental Houses and Condominiums,” available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant delivery at www.BobBruss.com.

5 Powerful Homebuying Strategies for San Francisco Homes, Lofts, Condos, & TICs: Part 1

Don’t get “Pre-Qualified,” get “Pre-Approved!”

Do you want to get the best house you can for the least amount of money? Do you want to truly understand market value for the exact type of home you are purchasing?

Then make sure you are in the strongest negotiating position possible. Price is only 1 bargaining chip in negotiation, and it is not necessarily the most important one. I know you’re thinking, yeah right, like the seller would choose an offer that isn’t the highest price! Well, it’s true, folks. Sometimes, other terms such as the strength of the buyer, the # of contingencies or the length of the escrow are more important to the seller.

In years past, buyers got “pre-qualified” by the a lender. This is when you spend a few minutes on the phone with a lender (your bank, for example) or on the Internet, say on Lending Tree, answering some basic questions. Based on your answers, the lender or online site pronounces you “pre-qualified” and issues you a certificate to show your Realtor and the seller.

This “pre-qualification” is not only no longer enough, it is downright meaningless. The sellers and their Realtors are aware that such certificates are WORTHLESS, and here’s why:

1. Nothing has been verified! Whose to say you didn’t just invent your income, credit history, marital status….? Unknown problems can surface during escrow that affect the approval of your loan, and thus the sale of the seller’s property. These problems can include: recorded judgments, child support payments due, credit report glitches (both accurate AND inaccurate), down payment funds that have not “seasoned,” i.e. been in your account long enough, etc, etc.

2. Today’s economy is suffering from the sub-prime meltdown and it ain’t over yet, kids! You may think that this doesn’t affect you because you have good credit but you may be wrong. Lenders have seriously tightened their belts! Their requirements are stricter, making it tougher for first-time buyers in expensive markets, like San Francisco, to qualify for loans.

In today’s San Francisco real estate market, whether you are buying a loft in the Mission or SOMA or a Bernal Heights single family home, the ONLY way to make a strong offer and get the home you want is to get “pre-approved,” unless you are paying ALL CASH, in which case, you’ll need to verify this too!! 

You are “pre-approved” AFTER all of your information (income statements, credit report, bank statements, tax records, etc) has been submitted, checked, and verified by the mortgage broker and/or lender. You are actually APPROVED for the loan and the only loose end is the appraisal on the particular loft, condo, home, or TIC you wish to purchase.

“Pre-approval” should come BEFORE you find the perfect home. It should take place before you even go SHOPPING for the perfect home. The process can take anywhere from a couple of days to a few weeks, depending on your situation.

It’s an EXTREMELY POWERFUL WEAPON that I insist all of my clients have in their negotiating arsenal.

ADDED BENEFIT: Getting “pre-approved” means you understand all of your financing options and are totally clear on what you can really afford.

Don’t base the most important financial decision of your life on an Internet mortgage calculator! Knowing your true capability and options will seriously ease the San Francisco home buying stress because you know exactly what price range to look for in properties. You will be able to compare apples with apples, thus learning market value for yourself. Your Realtor will provide comparable sales data AND you should feel comfortable from your own “market research.”

Save your Sundays for the NYTimes Crossword!

** How do I find a good Mortgage Broker to help me with my “Pre-approval”? **

It is extremely important that you work with a reputable, reliable, and experienced mortgage consultant. There are many folks out there who will make promises they can’t or won’t keep. The age-old adage applies, “If it sounds too good to be true, it probably is!”

Finding the right loan consultant is NOT about rate-shopping. A good mortgage broker will get you the best rate and terms for you. It is about finding someone you can trust, who will explain everything to you in full detail, and who will perform on-time and as promised.

Ask your Realtor for their recommendations. Most of us have mortgage brokers with whom we work regularly and frequently. We know how they conduct business and we know we can count on them when the going gets tough….and it usually does at at least one point or another while in escrow. Since your Realtor has an ongoing relationship with the mortgage broker, they will be really committed to doing a great job for you. Instead of one loan, it is a continual flow of business. It’s in THEIR best interest to do right by you. Make sense?

Here are some helpful terms and definitions:

• Loan Pre-Approval
• Loan Pre-Qualification
• Mortgage Loan

As always, send me a question about San Francisco real estate! I want to answer your home buying or home selling questions.

What is Market Value, Or Who Determines The Sale Price of a Home?

Pricing, Pricing, Pricing…. It’s a mad, mad world, isn’t it? No matter how many times we Realtors explain that pricing for real estate is just as it is for anything else, i.e. supply v. demand, buyers and sellers seem to have their own ideas!

Ultimate Rule Numero Uno: 1. The buyer sets the price.

What this means and what it does NOT mean: It means… This rule means that no matter what the seller wants or what the comparable sales say, ultimately, the buyer who is willing to purchase the property at the highest price sets the market value. In other words, market value is what any one buyer will pay for a particular property at a particular moment in time.

For example, there is a condominium listed for $599,000. Activity is sluggish and after 6 weeks, a buyer makes an offer of $590,000 and the seller accepts. In this case, the condo’s market value is now $590,000. Or, the same condominium goes on the market for $599,000 and activity is brisk.

In fact, the open houses are swamped with people and listing agent gives out 10 disclosure packages to interested parties. She sets an offer date, or a date in which all offers will be reviewed. Five Realtors bring offers on behalf of their clients. The best offer, in both price and terms, is for $650,000. The seller accepts. In this case, what is the market value of the condo? It is $650,000. It does not matter that it couldv’e sold for $590,000. All that matters is that one buyer was willing and able to pay $650,000 for it.

It does not mean… To say that the buyer sets the market value of a condo does not mean that any buyer can set any price he wishes. In example 2 above, if you felt that the market value was the asking price of $599,000, you would not have set the price because at least 3 of the other 5 buyers offered more money. Sure, in your mind, the market value was $599,000 but in reality, the value was what the market could bear: $650,000.

This system is not unlike the stock market. A stock’s value is based on what investors will pay for it. Sure, the price has something to do with P/E, ratings, the economy, etc but at the day’s end, it trades for what buyers and sellers will allow.

If you are behind on your mortgage…

If you are behind on your mortgage or worry you will be once your rate begins adjusting, the key is not to panic and to face reality.  Often, it is our desire to live in denial that makes a bad situation, worse. Much worse. Think ruined credit and bankruptcy.

Facing your situation head-on and proactively can save your credit and hopefully, your home. If you are headed for a rate adjustment, call a mortgage broker! A good mortgage consultant may be able to refinance you with little or no fees to an affordable rate.

If you want referrals for reliable, respectful mortgage lenders, let me know. The Chronicle has a good read on what to do. Check out “Act Fast if Behind on Mortgage.” The ideal situation is to avoid this situation before it occurs but life happens and when it does, we must act and then, move on. So, ask for help. There are many of us in the real estate community that are here to help you.