The Women’s Council is taking the taboo out of talking about the large, pink elephant that stands in the center of all the industry turmoil. That elephant of course is that many of us may not make it through this downturn.

Perhaps the scariest thing in this downturn is not what it does to you personally, but the ripple effect it has on those in your life.

When you own your business, you not only feel responsible for your own family, but the families of your employees, customers, vendors and subcontractors as well. You can deal with cutting back when it comes to your own needs, but not being able to provide for those who have been supportive to you can be heart-wrenching.

In the United States, 73% of women who own their own businesses founded them on their own ― as opposed to buying or inheriting them ― compared to 59% of men. Still, when we think of women-owned businesses, we often envision small, mostly sole, home-based proprietorships.

However, according to the Center for Women’s Business Research (CWBR),3% of all women-owned firms have revenues of $1 million or more, compared with 6% of men-owned firms. In the building industry, while the number of sole, women-owned businesses is below the national average, these businesses make up about 18% of the NAHB registered member companies, reporting sales on average of $2.5 million every year. That’s not exactly small business, is it?

Whether a business is women-owned, small or home-based — the reality is that it faces a building industry in a cyclical decline with a challenging future. That's why many women in the building industry are now confronting significant obstacles to their financial well-being — both personally and professionally.

As with every challenge, today’s market brings opportunity as well. The economic clout that women have — and the depth of knowledge they bring to clients and cohorts — are vital to the building industry. This simple fact is important because it means any woman in the building industry can survive, re-tool and gracefully weather this industry downturn.

The best offense is to take advantage of available resources, and CWBR reports that women business owners are on the right track, as women owners of firms with $1 million or more in revenue are more likely to belong to formal business organizations, associations or networks like NAHB and the Women’s Council than other women business owners — 81% to 61%.

The key is creating relationships with people in all types of industry. Jobs come and go; relationships do not. Look for employees who bring more to the table. No company will let go of a team member who is bringing in substantial contacts or revenue stream. Job security is directly proportional to the people who you know and know you.

A healthy dose of mind over matter also helps.

Tom Reilly, author of “How to Sell and Manage in Tough Times and Tough Markets”said, “You can thrive, but it doesn’t happen by accident. It starts with attitude, since attitude drives behavior, and we become what we believe. You must get yourself in the right frame of mind.”

Michelle Roberts, founder and CEO of Chatham Hill Residential Design and Build, LLC and Ecohealth Homes of Boston, said she has had many doors open despite the market outlook. Face-to-face networking, she said, is critical to building and maintaining a business.

“I believe if everyone was busy, and making money, people would not be looking at my company or its business model,” said Roberts. “I think my advantage is that I am a woman-owned company, I am well versed in safe and healthy housing and my professional background is in sales and marketing.”

According to Reilly, 70% of companies will survive today's tough times, 25% of businesses will fail and 5% will actually grow and thrive during this period.

To ensure that your company lands in the first category, you must go back to business management basics.

You need to do your research — and these slower times are the perfect excuse to find some quiet time and reflect on your realities.

Written by Karen Dry and Linda Herbert.

NAHB Women’s Council Vice Chair Karen Dry is president of Garret Interiors Inc., an interior design company based in Westlake Village, Calif. specializing in model home merchandising along with residential, commercial and hospitality interior design. Linda Hebert is the chair of the Women’s Council communications subcommittee and president of Diversified Marketing & Communications, of Pleasanton, Calif.

Mortgage Commitment Dates

By Rick Pristas

Spring time is here and it is historically the busiest time of the year for buyers, sellers, real estate agents and your loan officer.  You may have been shopping for a home for the past year or just started last weekend and have found the perfect house. Your contract has just been accepted and you will be moving into you new home in time for the summer.  The closing is 60 days away-two whole months-that's more than enough time to get everything done........or is it?

Actually, you need to review your contract to make sure you meet specific dates that keep you in compliance with terms that you agreed to. Critical dates would include items such as-repairs to be made after your home inspection, date the second deposit is due and the date your mortgage commitment is due.  All of these items can impact whether or not you still want to actually purchase the home and whether the seller is still contractually obligated to sell you the home.

These are all dates that you need to be prepared for and naturally, if you are not prepared, what was once an exciting and fun transaction can turn into a very stressful one. 

If you are reading this hopefully I am the one handling the financing for possibly one of the largest financial transactions you may make in your lifetime.  You may be wondering what part of this can be stressful? Thinking to yourself -I found my house, the contract was accepted a few weeks ago, I close in a few weeks and have just chose you to provide my financing.  Then I ask the question- When is your mortgage commitment due?Remember, that is one of the critical dates in your contract and it is not the date you commit to a mortgage company-it is the date the mortgage company commits to you.  

A commitment letter is issued after your property has been appraised, you have provided us all of the income and asset documentation we have requested,  returned your signed loan documents and our underwriter has reviewed all of your documentation.  This takes time, so the sooner you start the process the less stress it will cause. 

Yes, we regularly issue commitments in 7 to 10 days due to unusual circumstances.  However, if you have the option-Be Prepared-as with most things in life it will make the process go much smoother.

What can you do? Secure your mortgage prior to finding a home. Fax me two recent pay stubs, W2's and statements to verify the assets you are using for the transaction and you will be off to a great start. 

If you have any questions I can be reached at 732-818-0802 or on my cell any time at 732-600-6181.

Write-offs are the government's way of rewarding taxpayers when they've done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget.

Make sure you take advantage of every break the IRS will give.

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a "service fee" are not tax deductible. The question must be asked, "Does the fee apply to the use of money, or is it a service charge?"

Discount points are paid to secure a lower interest rate. IRS Publication 936 lists a general rule that states, "You generally cannot deduct the full amount of points in the year paid. Because they are prepaid interest, you generally must deduct them over the life (term) of the mortgage." However, there are conditions which, if met, make discount points tax deductible in the year they are paid. (For more details on points and deductions, see http://www.irs.gov/publications/p936/ar02.html#d0e942.)

Pre-payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately, pre-payment penalties are tax deductible, which helps ease the pain.

Pro-rated real estate taxes:
Even if the seller sent the tax collector the check, chances are the buyer paid a pro-rated portion of the taxes for the year at closing. Be sure they know to deduct their fair share.

Pro-rated mortgage interest:
Depending on when in the month the home sale closes, buyers pay either a hefty or a tiny amount of pro-rated mortgage interest for that month. Big or small, they can write that off. The Final Closing/Settlement Statement will show just how much they're due.

Home construction loan interest:
As long as the construction period doesn't last more than two years before they make the new place their "principal residence," they can write off the interest for that construction loan.

It pays to pay attention—all these write-offs can add up to some serious savings when tax time comes around.