All About Short Sales

May 15, 2014 by  
Filed under Finance & Loans

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Written by Phin Upham

Short sales are fairly common in the landscape of real estate today. A short sale property can be a great deal for a home buyer, but they require some patience to find just the right property. Investors love short sales because they can get the property at a slight discount. Here is how short sales work and why people use them.

Short Sales Defined

Short sales occur when the property sells for a price that is lower than what the home owner owes on the loan. A short sale is like a last chance for the buyer to avoid foreclosure. The lender needs to approve the sale, often selling the property at a loss.

Lender Approval

The reason for lender approval has to do with the loan amount. The lender is expected to sell the home at a substantial loss, which usually requires verification that the buyer can’t actually make the monthly payments on the property. Usually, this occurs when the owner has lost a job or suffered a pay cut. So the lender needs to determine if it makes financial sense to sell the property at a loss, as opposed to holding onto it in foreclosure.

When to Short Sale

When a home owner can no longer pay his mortgage, he has two choices. He can attempt to renegotiate the loan with adjusted payments, or he can attempt a short sale on the home. The borrower stands to take a hit to his credit report on a foreclosure, which incentivizes the short sale. Put another way, it’s often better for both the lender and the borrower to get rid of the property as quickly as possible. A short sale is a good method for doing this.

Phin Upham is an investor from NYC and SF. You may contact Phin on his Phin Upham

The History of Chevron

May 2, 2014 by  
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Written by Phin Upham

Chevron is the fifth largest energy supplier in the world. Its operations include oil and gas production, prospecting, marketing and refining. It also manufactures chemicals, and it is the largest supplier of geothermal energy currently in existence.

Standard Oil was an American oil company co-founded by John D. Rockefeller. By the time it became an established corporation in 1870, it was America’s largest oil corporation. However, Standard Oil was dissolved as an illegal monopoly in 1911. At the time, it was called one of the “Seven Sisters” of oil production.

Chevron’s history has been successful since a 1938 agreement in Saudi Arabia that allowed the company to prospect there. They ended up finding the world’s largest oil fields, which forced them to open a subsidiary. The company was American owned until 1988, when Saudis purchased shares in the subsidiary and transferred ownership.

But Chevron was already growing larger by then. In 1984, the company merged with Gulf Oil. The deal was so big that Gulf Oil had to sell off all of its subsidiaries and an entire refinery based in the United States. Once it had met the US antitrust requirements to complete the deal, they formed the largest corporate merger of the time.

The company grew again when it merged with Texaco, creating a new entity called ChevronTexaco. The name changed back to Chevron shortly after the merger, to try and represent unity in the company’s values.

Phin Upham is an investor from NYC and SF. You may contact Phin on his Phin Upham