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With Real Estate Notes

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									               “Charting Your Retirement with Real Estate Assets”

                                   September – October 2006

My apology

First of all let me apologize for not getting reports out at the beginning of September. Besides some family
medical emergencies I was also focusing my efforts on reviewing Trust Deed investments and Custodial
investment options. Getting your money working in the smartest way is very important to us all and that
took precedent over the newsletter. Anyway included with this newsletter are your account reports from
TASC for the last 2 months.

TASC currently holds cash in client accounts in a low rate money market account. There are other options
available at TASC that allow for investment in bank Certificate of Deposit (CD). The rates range from 1.5%
to 4% depending on the length of time of the CD. If you are over 59 ½ you can cancel the CD if another
investment is more desirable. There is no penalty if you are over that age.

I have asked a local Merrill Lynch Account Executive for a rate sheet on various cash type investment
alternatives. That rate sheet is enclosed. Some of these investments may be appropriate short term
investments held in your TASC account. We can have a conference call with the Merrill Lynch Advisor
about what is appropriate for you.

I am currently investigating some options for investments in Deeds of Trust which are paying interest rates
between 8-10 percent. Once my due diligence is completed on these investment options I will discuss with
you your options. In the meantime please call me so we can decide what to do with your uninvested cash.

TASC recently sent out a letter to all clients, which highlighted some changes in their policies and operating
procedures. This letter is only for informational purposes, and does not relate to your custodial accounts.

Our website is now up and running. More features will be added soon. Go to www.raymonddale.com

Current Interest Rate Trends-Winners & Losers
The following is from Bank Rate Monitor: Winners and Losers

This time, it was widely expected that the Federal Reserve's Open Market Committee would leave rates
alone. In the end, the FOMC did just that, keeping the target Fed Funds rate at 5.25 percent, a decision that
creates winners and losers. Here is a rundown of how different types of borrowers and savers will be
affected:
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Adjustable-rate mortgage holder or shopper: Winner
Rates on adjustable-rate mortgages, or ARMs, had been rising as an indirect consequence of the Fed's rate
increases. Now that the Fed has stopped, or at least paused, rates on ARMs are likely to follow suit. If your
ARM adjusts every six or 12 months, the rate almost certainly will rise when the adjustment period arrives,
but not as much as it otherwise would have. If you recently got a hybrid loan, such as a 5/1 ARM, in which
the initial rate lasts five years, your rate won't go up until the end of that introductory period.

Fixed-rate mortgage shopper: Winner (possibly)
If you already have a fixed-rate mortgage, the Federal Reserve's decision won't affect your monthly house
payment. Folks who are shopping for fixed-rate mortgages know that mortgages have been dropping slowly
over the past few weeks. It's too soon to know for sure how this continued pause will affect mortgage rates,
but they're unlikely to rise rapidly anytime soon. If investors conclude that the central bank isn't zealous in
fighting inflation, long-term rates could rise in the coming weeks and months. But investors have been
giving the Fed the benefit of the doubt.

Home equity line of credit borrower: Winner
Home equity lines of credit, or HELOCs, feature variable rates that move up and down roughly with the
prime rate. The prime rate will remain 8.25 percent, so your HELOC rate is likely to remain unchanged, too.

Home equity loan shopper: Winner
Homeowners who already have home equity loans aren't affected either way, because these loans have fixed
rates. Home equity loan rates rose gradually for the first seven months of this year, but flattened at around
7.9 percent about six weeks ago, around the time that the markets became convinced that the Fed would stop
raising rates.

Certificate of deposit investor: Loser
You're not really a loser if you can get 5 percent or better on your fixed income. But the reality is that with
the Fed continuing its wait-and-see mode, we're not likely to enjoy higher CD yields. Instead, we remain in
some sort of financial limbo with stagnant rates that will be more prone to slowly shedding precious basis
points than gaining them as the weeks and months drift away. Don't just sit there; lock in the best rates you
can find, for as long as you can.

The average yield on a six-month CD is 3.6 percent, down 6 basis points in the past two weeks. Today's
average yield for a five-year CD is 4.2 percent, down 10 basis points in six weeks.
According to the survey by Bankrate.com, the average yield on a three-month CD has held fairly steady for
six weeks and stands at 2.89 percent. The one-year CD earns an average 3.89 percent, up 6 basis points in
six weeks.


Feature article - Why Real Estate Notes?
One of the first questions I am often asked is why invest in Real Estate Notes. A firm indicator of the
success of Real Estate Note investments can be seen by the type of investor who chooses this genre of
investing. Real Estate itself is one of the prime investment vehicles for the wealthiest of investors.
Obviously, if this is their chosen method, it must be a good choice. Real Estate had proven to be an
excellent long term investment. So what better investment than one secured by Real Estate in general? Of
course the exact location and terms of a note will decide the benefits and wisdom of any Note investment.


                   132 N El Camino Real, #358 Encinitas, California 92024 Ph: 858 455 0500
                   email: rdale@raymonddale.com            website: www.raymonddale.com
                                                                                                             3
What is foremost in most investor’s minds today? It is “Will I have enough Income for retirement?” With
a fledging Social Security system and dwindling pension plans those individuals who are currently in the
mid 40’s and 50’s have to be concerned that when their time for retirement comes, they may have no
benefits available to them. Those in their 60’s or older already know the challenges of living on fixed
income. Real Estate Note investing helps resolve this issue by providing a flexible income per month. Real
Estate Note investing allows for an income to be paid to assure a secure retirement. The opportunity to
invest your retirement account in Real Estate and Real Estate Notes makes the most sense in preparing for
those retirement years.

In short, Real Estate Note investing is the investment for today and for the future. Considering the lack of
volatility, as experienced in stock market investing, it is no wonder so many are looking to balance out their
portfolios with these assets.

As always, I look forward to your calls on any financial matters or questions that interest you.


Sincerely,




Raymond C. Dale – Managing Director, Broker




                   132 N El Camino Real, #358 Encinitas, California 92024 Ph: 858 455 0500
                   email: rdale@raymonddale.com            website: www.raymonddale.com

								
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