April 27, 2024

Derrick Strauss of All Western Mortgage Calls Hybrid ARMs a Smart Move

Derrick StraussThe adjustable-rate mortgage (ARM) is one of the most feared products in the financial industry, says Derrick Strauss. However, these oft-misunderstood mortgage options offer most homebuyers a favorable alternative to the perceived safety of the 30-year fixed-rate loan.

ARM: The strong arm of the recession?

Derrick Strauss points out that the adjustable-rate mortgage may have contributed in part to the economic downturn of 2007. This is, as Derrick Strauss explains, because people with very little experience managing their mortgage budgets were given loans they did not fully understand. In fact, says Derrick Strauss, the real estate bubble burst was more caused by irresponsible lending practices and overinflated prices than the loans themselves. Most of these high-risk mortgages have been pulled from market, reports Derrick Strauss.

The hybrid

According to Derrick Strauss, the adjustable-rate mortgage is actually an unfairly stereotyped product. Derrick Strauss points out that most modern ARMs have an expanded initial period at a fixed rate. Derrick Strauss explains that a typical ARM, now usually referred to as a hybrid loan, may start out anywhere from three to five years fixed before it hits the dreaded rates roller coaster. For homebuyers who plan to sell before this period is over, Derrick Strauss explains that an adjustable-rate mortgage makes sense. Over a seven-year period, Derrick Strauss explains that a typical 7/1 Hybrid ARM may save upwards of $12,000 on a moderately priced home.

Risk vs. reward

Derrick Strauss says that there are some risks involved with the adjustable-rate mortgage. Borrowers are only guaranteed a fixed rate for a specified time frame before they must either deal with fluctuating house payments, refinance, or close the loan completely by selling the property. This, explains Derrick Strauss, is where a little planning makes a big difference in the long run. For example, an older couple looking to retire within 10 years and downgrade to a condo may choose an adjustable-rate mortgage and save a considerable amount toward their retirement fund, says Derrick Strauss. An ARM may not be an ideal loan for a young couple who might need to live off of one income when it’s time to start a family.

Prepare for the worst

Derrick Strauss emphasizes that even buyers who are certain they can get out of an adjustable rate mortgage should take a bit of precaution and prepare for an enlarged house payment. Putting aside even a small portion of the initial mortgage savings each month can help offset higher costs later, says Derrick Strauss. This way, if acquiring a new mortgage is not an option, there will be a financial cushion to absorb any potential sticker shock.

Derrick Strauss explains that a worst-case scenario isn’t even as devastating as people have been led to believe by mass media. On a similar house payment as mentioned above, a 6.125 percent increase comes out to a little less than $300 per month. While Derrick Strauss understands that this is definitely not desirable, a bit of education in regards to what exactly an adjustable-rate mortgage is, coupled with proactive future planning, can help prevent financial crisis later.

Derrick Strauss is the marketing manager for All Western Mortgage, a Colorado-based real estate lending agency spanning 22 states.

Lindsay Rosenwald on the Progress in Prostate Cancer Research

Lindsay RosenwaldDoctor Lindsay Rosenwald has also proven to be an influential investor in the biotechnology industry. Lindsay Rosenwald continues to monitor the medical community and its efforts to cure major forms of cancer. Here, Lindsay Rosenwald answers questions about how prostate cancer research has progressed in the last decade.

Interviewing Experts: Thank you for taking time to talk with us.

Lindsay Rosenwald: I’m glad to be here.

Interviewing Experts: Is there any progress in the area of prostate cancer research?
 
Lindsay Rosenwald: There has been a great deal of progress in prostate cancer therapy over the last several years, which suggests even more potential in the near future.

Interviewing Experts: What has helped this progress?
 
Lindsay Rosenwald: Significant advances in chemotherapy, along with the use of robotic surgery are demonstrating a pronounced effect in cancer patient outcomes.

Interviewing Experts: What is targeted therapy?
 
Lindsay Rosenwald: Targeted therapy is a more recent form of cancer treatment that utilizes drugs or other substances in order to identify and then attack cancer cells.
Interviewing Experts: How does this affect the body?
Lindsay Rosenwald:  Targeted therapy accomplishes this task while invoking little damage on the surrounding normal cells.
Interviewing Experts: Where does targeted therapy achieve its goal?
 
Lindsay Rosenwald: These therapies will attack the programming of these cancer cells, setting them apart from healthy, normal cells that are performing all their functions properly.

Interviewing Experts: How does targeted therapy work?
 
Lindsay Rosenwald: Each form of targeted therapy operates in a different manner, depending on its application and the particular patient.

Interviewing Experts: But all with the same goal?

Lindsay Rosenwald: Yes, all of them alter the way in which a cancer cell grows, repairs itself, divides or even interacts with other cells.

Interviewing Experts: What type of drugs is being developed?
 
Lindsay Rosenwald: Cabozantinib is a new drug that specifically targets the MET protein.

Interviewing Experts: What does this mean?

Lindsay Rosenwald: The MET protein will trigger tumor growth and eventually lead to the formation of blood vessels that lend nutrients to the tumor. Cabozantinib also has an effect on angiogenesis by targeting the VEGFR protein.

Interviewing Experts: What is angiogenesis?

Lindsay Rosenwald: Angiogenesis is the process of new blood vessels forming from the already existing vessels.

Interviewing Experts: How does Cabozantinib work?
 
Lindsay Rosenwald: Cabozantinib has helped to prohibit tumor growth and alleviate pain in patients.
Interviewing Experts: Can Cabozantinib be used in all types of patients?
 
Lindsay Rosenwald: In early studies, this drug was found to make bone tumors get smaller or even go away on imaging scans in many men whose prostate cancer was no longer responding to hormones.

Interviewing Experts: How long does the effect last?
 
Lindsay Rosenwald: In most cases, the effect lasted about 6 months.

Interviewing Experts: That’s an encouraging sign.
 
Lindsay Rosenwald: It is. However, it’s not clear now if the drug will actually help men to live longer.
 
Lindsay Rosenwald is a co-founder of the firm Investment Partnership. Through Investment Partnership, Lindsay Rosenwald and his business partner invest funds into the healthcare space for the benefit of a variety of medical research projects.

Rehak Creative Services on the Importance of Hiring an Ad Agency

Rehak Creative ServicesRehak Creative Services helps build businesses through communications. Rehak Creative Services founder Bob Rehak, with more than 40 years of experience in advertising, understands better than most the importance of consistent, focused communication. Below, he explains why an advertising campaign is essential to the growth and success of any business.

Q: Why hire an ad agency?

Bob Rehak, Rehak Creative Services: Clients are too close to their products and services to be objective about them. They know their products inside out. But we can help clients look at them from the outside in – the way prospects see them.

Q: How do you learn about new markets?

Bob Rehak, Rehak Creative Services: We’re fast listeners. When we interview clients, we try to ask questions that a prospect would ask in the order a prospect would ask them if he/she were in the room.

Q: Is there a difference in working for small versus large companies?

Bob Rehak, Rehak Creative Services: It used to be that only the largest clients could afford the significant investment that allowed them to create ads, brochures, commercials and other promotional materials themselves.

Q: But not anymore?

Bob Rehak, Rehak Creative Services: Now, even the smallest businesses can perform these tasks all by themselves.

Q: What’s driving that changed?

Bob Rehak, Rehak Creative Services: Inexpensive software programs allow novices to create passable work.

Q: So why go to the expense of hiring an agency?

Bob Rehak, Rehak Creative Services: To get an outside perspective. Clients know their business from the inside out. On the other hand, ad agencies know it from the outside in.

Q: Explain.

Bob Rehak, Rehak Creative Services: Ad agencies can help clients articulate selling messages that resonate with prospective customers, not just management.

Q: So a broader view?

Bob Rehak, Rehak Creative Services: Sometimes you can be too close to ideas to see things objectively.

Q: That’s so true.

Bob Rehak, Rehak Creative Services: That’s why doctors never treat themselves, why lawyers never defend themselves, and why psychiatrists never analyze themselves.

Q: What are some other benefits of acquiring an outside ad agency?

Bob Rehak, Rehak Creative Services: Ad agencies are in a better position to see things without internal bias.

Q: How so?

Bob Rehak, Rehak Creative Services: They have nothing vested in research and development, favorite features or functions, manufacturing facilities or other business elements. They solely represent the prospect, not a faction within the client organization.

Q: So you try to help the client see themselves through their customers eyes?

Bob Rehak, Rehak Creative Services: That’s the first step in creating breakthrough work.

Rehak Creative Services is a marketing communications firm serving local and international clients from their base in Houston. Since 1994, Rehak Creative Services has managed advertising campaigns for clients such as Pinnacle, Halliburton, CompuCom and TransCanada. Rehak Creative Services founder Bob Rehak has twice been chosen as Copywriter of the Year by prestigious industry publication Adweek magazine.

All State Van Lines Relocation Devotes a Full Week to Customer Service Staff

All-State-Van-Lines-Relocation-CustomerServiceStaff1All State Van Lines Relocation is a moving brokerage firm based in Margate, Florida, that coordinates residential and corporate moves and relocations for long-distance moves, nationwide. In this interview, All State Van Lines Relocation describes their Customer Service Appreciation Week to celebrate employees.

Interviewing Experts: We understand you all did something a little unusual recently?

All State Van Lines Relocation: Yes, we decided to take a little time away from the hectic pace of the moving industry to show appreciation to our employees.

Interviewing Experts: You wouldn’t get too far in the moving industry without your employees, right?

All State Van Lines Relocation: That’s for sure. Each All State Van Lines Relocation employee has to go through a rigorous training process, and we just wanted to show our appreciation for their hard work.

Interviewing Experts: Did you have a theme?

All State Van Lines Relocation: Yes, we called the weeklong activities “Be the One” and came up with a full week of fun events to get the staff involved and build company spirit.

Interviewing Experts: Was it just for customer service employees?

All State Van Lines Relocation: No, the whole company took part, but customer service is the heart of All State Van Lines Relocation—the folks who greet customers, take phone calls, and handle emails. And even though it also happened to be International Customer Service Week, we tried to give it a unique spin.

Interviewing Experts: What kinds of things did you plan?

All State Van Lines Relocation: Monday started off with a free continental breakfast. Everybody enjoyed the pastries, waffles and eggs.

Interviewing Experts: And Tuesday?

All State Van Lines Relocation: The next day we challenged the employees to see who could wear the nuttiest, most outlandish hat. People really went for it and the building was filled with folks wearing all kinds of goofy headgear.

Interviewing Experts: We heard there was a big All State Van Lines Relocation Sports Day?

All State Van Lines Relocation: Right! On Wednesday everybody got to brag on their teams as they were invited to wear their favorite team jersey. People really got into it.

Interviewing Experts: And you still had two more days to celebrate?

All State Van Lines Relocation: Thursday was Wacky/Tacky Day when everybody wore bright, mismatched outfits, and Friday was Department Color Day. For that event, each department within All State Van Lines Relocation was assigned a certain color to wear. The customer service department got the award for Most Coordinated because they all looked so swanky in black.

Interviewing Experts: And some things lasted all week, right?

All State Van Lines Relocation: We incorporated daily raffle prizes, different word games, and an essay competition.

Interviewing Experts: Why did you go to so much effort?

All State Van Lines Relocation: Our primary goal is to attain the highest level of customer satisfaction, and we’re aware that can’t happen unless our employees feel secure and content in their jobs.

Interviewing Experts: And that builds a happier team, I’m sure.

All State Van Lines Relocation: Right. This is the type of event where we got to mix with our employees in a different way and reestablish that bond that makes All State Van Lines Relocation so successful.

Paul Kadri Offers Tips on Good Vendor Relationships

Paul-Kadri-HandshakeFor more than 19 years Paul Kadri has been a manager in both government and education. Trying to get the most resources out of the money available has been a goal each and every year. In this interview, Paul Kadri offers some thoughts on what has brought him success in working with vendors to develop win-win opportunities.

Interviewing Experts: You have been a manager for many years. In what areas have you worked with vendors?

Paul Kadri: There are probably too many areas to even remember. Obviously one thinks of computers, custodial supplies, and office supplies. But that can also include mowing grass, consulting services, etc.

Interviewing Experts: Is there something that they all have in common?

Paul Kadri: Two things they have in common: one of them is identical in every organization and the other could be different but it still exists. The identical component is the reality that vendors need to make money. If they lose money working with you, you’re unlikely to get the best service. The other commonality is that every company has their “nature.” This means that they have a way of doing business that may be slightly different from how others do business.

Interviewing Experts: Why is understanding these two components important for vendor relations?

Paul Kadri: A business is nothing more than a collection of people. If you have a worker that reports to you, they will be more motivated the more they believe that you understand them as an individual and are looking out for them. In the same way, a vendor will be more motivated to help you if they feel that you are looking out for them.

Interviewing Experts: Let’s start with the first component you mentioned. Isn’t it a given that all vendors want to make money?

Paul Kadri: Of course vendors want to make money. Opposite of that, we want to spend less and get more. The trick in the relationship is to find the place where the vendor is happy with the money they make, and we are happy with the services we receive. By understanding how the vendor makes money, I was able to find opportunities to get the best value from them.

Interviewing Experts: Can you give an example of how you did that?

Paul Kadri: Sure. Most organizations have a sales force. A salesperson has a sales plan. It would not be uncommon for me to sit down with the salesperson and talk about their sales plan. There may be certain products that the company is trying to sell more than others. If that is a product that I would like to have, then not only will I get a better price for that product, but I help the salesperson reach their goals, which makes them more responsive to my needs.

Interviewing Experts: It sounds obvious, but at the same time, it almost sounds underhanded?

Paul Kadri: I can assure you that finding a win-win solution with your vendor is celebrated on both sides.

Interviewing Experts: Let’s talk about your second point. What did you mean about the nature that exists within an organization?

Paul Kadri: It is impossible to specify what the different nature will look like, except to say that each organization will have its unique characteristics that influence how to create the best relationship. Let me offer a simple example. There’s a computer manufacturer whose fiscal year ends in February rather than December. Companies are more likely to give deeper discounts at their fiscal year end. By changing when we purchased, we were able to get significantly more for our dollar, and the company was actually happier.

Interviewing Experts: That seems so obvious. Were you taught that or did you come up with the strategy?

Paul Kadri: No one taught it to me, and I do believe I’m one of the few people who operates this way. It originates from two things: First, I was a salesman for a brief period of time and know the stress that they are under; and second, I believe that direct communication is the best way to find a win-win scenario.

Interviewing Experts: Your concept sounds great, but I was always under the impression that competition was the best way to get value?

Paul Kadri: Some people do firmly believe that you get the best value by playing one vendor off of another vendor to get the lowest price. I strongly disagree with that. While one may get the lowest upfront price by having that competition, I believe I get much greater value by having a relationship with a vendor like I describe above. There are always times when you need a vendor to fix a problem or to address a crisis. By having a relationship, managing those circumstances becomes easy and cheap.

Interviewing Experts: Have you ever gotten any feedback from vendors?

Paul Kadri: Absolutely. As a matter fact, Dell Computer valued this approach so much, that they let me speak to their sales force and asked me to sit on their national advisory committee.

Interviewing Experts: Is there anything else you’d like to mention?

Paul Kadri: Someone could be reading this and wondering how I got around state purchasing laws, given that I worked in the public sector. One always has to make sure to remain within the laws. With the states in which I worked, one could always negotiate with a vendor as long as the price of the item was below the state contract price. Please check your state’s rules and understand them thoroughly.

Interviewing Experts: Have you ever thought about having a workshop on vendor relationships?

Paul Kadri: I think I will do that after I retire. For right now, I would like to continue getting the best deals for the organizations in which I work.

Paul Kadri has been a highly successful public school administrator for 16 years. In addition to exceeding expectations, Paul Kadri is known for creative vision and the ability to solve complex problems.