There’s always something to howl about.

Month: March 2007 (page 8 of 9)

What’s The Rate?

There are so many ways we were taught in mortgage sales training to answer that question:

1) Well…that depends on your…credit…income…equity…purpose for the loan , etc.

2) What rate are you trying to get?

3) It would be unprofessional of me to diagnose your problem…blah…blah…blah

I realize that when a guy asks you that question, on a plane from Phoenix to San Diego, he’s making small talk and wondering what the market is doing. I know that he means the 30-year fixed rate, for loans under $417,000, 1% origination fee, no points, full-documentation, 80% loan-to-value.

Most of America believes that God whispers that rate to Ben Bernanke every morning who sets it based on that daily divine revelation.

Without further wise-ass comments, that rate is 5.875% (for a 6.13% APR).

We are an equal opportunity lender.

Poster for Free Russell Shaw Sales Success seminar

Cathleen has ironed out all the details for next Tuesday’s Russell Shaw Sales Success seminar.

As a reminder, the event will be held Tuesday March 13, 2007, at the offices of North American Title, 3200 East Camelback Road, Phoenix, AZ 85018. The event will run from 6:30 PM to approximately 9:30 PM, and refreshements will be served.

There is no charge to attend.

Russell will handle two meta-topics, followed by question and answer sessions, with a short break between.

North American Title and Worldwide Credit Corporation are sponsoring the event.

I’ve made a poster you can hang up in your office to let other agents know about the seminar. All the details plus driving directions.

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The Responibility To Be A Mentor

Why aren’t you a mentor? Most experienced agents aren’t. And no, answering a question or two from a neophyte doesn’t make you a mentor. It means you weren’t too busy and were in the mood to look magnanimous. Mentoring is a serious missing piece of the real estate puzzle. It is probably a major factor in the huge turnover we see in the business every year, whether it was a boom or bust year.

Why is that?

If you’re an agent or broker, what was your first year like? Did you set the world on fire? Did you meet all your goals and make a name for yourself as a rookie? Not likely.

My first year I made about $3K or so. Of course the median price then was about $19K or so. I was a full time college student working weekends and a few hours before or after class during the week. But I was mentored and a half. πŸ™‚

By the time I received notice from the state I’d passed my licensing test, I’d been attending seminars for two years, 90% of which were attended by me, myself, and I. The forms were old hat for me before I took the state test. I was grilled by Dad and his general manager, Wally Porter about all the finer points of being an agent.

Sometimes Dad would actually let me tag along when he took listings. There was no presentation. He spoke, they listened, they signed. For a naive teenager it looked the world to me like I’d be driving a Lincoln in no time flat.

The key to all the mentoring I received was how generously it was given. There were probably at least ten experienced agents/brokers who took the time to pass on their experience and to ensure I actually understood them. They taught me the things you just can’t learn in school. They also invariably reminded me that I’d no doubt be in the business long term and would have the obligation to do for others what they so graciously were doing for me.

What were the results of all their mentoring? Who really Read more

What’s a Realty.bot? Not me, alas . . .

We’re listing Thursday, and it’s been long enough since we’ve done one of these Grand Opera listings that I have a lot of new stuff to invent from scratch. Ideas are easy, it’s execution that’s hard. The sign and the collateral cards are built and being printed. We’re playing with a card that plays off of the sign to emphasize the differences you get by listing with us.

If you’re a glutton for punishment, you can monitor the changes in the web site/weblog named in the sign over the next 48 hours or so. The template is one I’ve been playing with for our brokerage web site (itself to be a weblog), but this version of it will be unique to this house.

I’ve got other balls in the air, too, so I might be thin on the ground for a little while.

James Hsu asked me to define Realty.bot, so here’s an on-stilts explication:

A Realty.bot is an internet start-up that plans to undertake some part of the residential real estate transaction, usually as an adjunct to selling advertising.

Trulia.com and PropSmart.com are listings.bots, acquiring listings by scraping, direct entry and XML feeds.

Zillow.com and several others are AVMs, Automated Valuation Methods, and Zillow is graduating to a direct-entry-only listings.bot, but they don’t like that designation.

Redfin.com can seem like a Realty.bot, but, as with many other new entrants, it’s really a brokerage with a higher-tech front-end.

Arguably, a true Realty.bot is strictly a media/advertising play, but that’s something that could change in time. ShackPrices.com, for example, plans to become a leads vendor, and it is not unreasonable to argue that this may be the ultimate business model for most/all Realty.bots.

A better bright-line dividing point might be face-to-face end-user contact. We may come to a point where a Realty.bot is distinguished from other vendors by being untouched-by-human-hands, a completely automated real estate product offering.

By then I will have made up different words.

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Weblogging as if it really mattered: How to write with integrity and passion

Do you know what stinks? The world is acrawl with canned-spam, cookie-cutter, rinse-and-repeat weblogging advice — and people follow it slavishly instead of keeping their own counsel, living their own ideal, following their own star.

That is: If I read another weblog post on how to write weblog posts, I think I’ll scream. To absolve myself of charges of hypocrisy, in advance, this not a post about how to write posts, it’s a post about how to write.

Do you want to know how to write? Here’s the tiniest taste of a first lesson: Start in the middle.

Not: “This is my report on…”

Not: “Webster’s defines…”

Not: “How can I begin to tell you…?”

Start in the middle, the way you’d start a phone conversation with someone you knew would be calling.

Like this: “Do you know what stinks?”

Oh, yes, comforting rules abound, but they are the very same rules you rebel against in every other aspect of your life. You say, “I don’t want the cookie-cutter taupe-on-taupe one-size-fits-all same-damn-thing.” And yet you scour the web, looking for sage advice about how to produce weblog posts that will not challenge, will not inspire, will not aspire, will not invoke, convoke or provoke, will not do anything except testify to your perfect ability to master perfectly bad advice.

If you are not interested in what you’re writing, how could you expect anyone else to be interested?

If you are convinced (by your own conviction or by having imbibed from too many fonts of false wisdom) that you cannot hope to connect with other people except by resort to EZ-reading tricks — dumbing the entire universe down to the drooling imbecility of the dumbest conceivable specimen — why would you expect anyone to respect and reflect upon your brilliance?

Good grief!

If you are writing to manipulate, follow the rules. They work.

If you’re writing to sell a product, follow the rules. They work.

If you’re writing to hide, writing to dissemble, writing to occlude, writing to obfuscate, writing to pull the wool over as many eyes as you can capture — follow the rules. They work.

But: If you are writing to communicate — make Read more

A Rare Breed — An Intelligent, Highly Educated Young Man — And He Doesn’t Know It All

It’s a shame, but I suspect most Bloodhound contributors, couldn’t pick half of us out of a lineup. Don’t get me wrong, we’ve emailed or phoned, but for the most part we’ve never met. I’m maybe the worst off. I’ve met Greg Swann, Russell Shaw, and Brian Brady. 3 out of 13. To be fair, we’re spread all over the country. We’re in San Diego, Phoenix, Chicago, New York, Seattle, Tampa Bay, Atlanta, and Santa Clarita (CA).

I bring this up because we know each other through our posts. I’m a real estate investment broker who gets people to a superior retirement faster than they thought possible. Many of them are world class agents in residential markets. One is magnificent in marketing, and two or three thrive in the mortgage business. We also have a couple guys who are very successful real estate investors. What an eclectic group Greg has put together.

Yesterday I thought it was about time I had a normal conversation with these folks. I’ve spoken on the phone with Kris Berg and Doug Quance. I’ve referred to Kris, and been interviewed by Dough. As I mentioned earlier I’ve met Greg, Russ, and Brian. So I called Michael Cook. Our subjects covered college, investing, where to invest, developing solid business relationships, kids, and his career plans.

Here’s what I think I learned about Mike. He’s genuine. At 26 he doesn’t think he knows everything. How many of us can say that with a straight face? Not me, that’s for sure. πŸ™‚ At that age I couldn’t carry his jock, and couldn’t understand why the world wasn’t beating a path to my door. He’s looking to learn at every opportunity. When he’s faced adversity he’s taken a lesson or two from it.

Read his stuff and try to imagine yourself at that level when you were 26. Are people staring because you’re laughing out loud? At that age I could dress myself nine times outa 10. πŸ™‚ The only guy his age I know whom I’d dare compare him to is my son Josh. But that’s another story entirely for another day.

Don’t take Read more

The Carnival of Real Estate . . .

…is up at Salt Lake Real Estate Blog. Host Nigel Swaby invokes a March Madness format. We entered Brian Brady’s interview with Lenn Harley. Brian made it to the Elite Eight, but not to the Final Four. Next week’s Carnival: The Phoenix Real Estate Guy.

The Carnival of Real Estate Investing is also up at The Landlord Blog. We entered Jeff Brown’s article on accelerated depreciation. This is the best investment article I have ever read anywhere, by the only standard that matters: Money. When it appeared here, I immediately sent it to every one of my investor clients. If you didn’t do the same, amend that omission immediately. In any case, it didn’t win. Go figure…

We had a lot of great stuff last week, but The Carnival of BloodhoundBlog award goes to Jeff’s essay. When a sweet and thoughtful man shows us how to make thousands more per year from our investments, a tip of the hat doesn’t even begin to pay the debt we owe him…

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True reform in the real estate industry will not result from undermining buyer representation

I’ve been sitting on a post from Jeff Corbett, The X-Broker, for a few days. Jeff Argues that Realty.bots will eliminate buyer’s agents. This actually ties in with recent announcements that major brokerages will be feeding listings to Realty.bots like Trulia.com and Google base. I get the idea Jeff thinks these are good things. I think he’s mistaken.

Start here: Jessica Swesey at InmanBlog asked:

If the DOJ wins and NAR is forced to retract policies, what is the likely chain of events to follow? Who wins and who loses?

My reply:

If the DOJ tries to play pirate with the current system, the big brokerages may go all in-house, which they could easily do already. Then there will be no small brokerages.

Jeff objects to this, but it’s not an unreasonable proposition.

Note, for example, the the overwhelming majority of listings in Tucson are held by one brokerage — Long Realty. Who gains more from the cooperative system imposed by the TARMLS system — Long or all the little brokerages competing against it? If Long pulled out of TARMLS, what would happen happen to those smaller players?

In Phoenix, the market is dominated by Realty Executives and by RE/Max, Keller Williams, Coldwell-Banker and Century 21 Franchises. If they pulled out of ARMLS, either in isolation or by forming a new big-boys-only MLS system, brokerages like mine would be wiped out overnight.

Too much of this debate is beside the point. Pundits simultaneously attribute too much and too little importance to the MLS. From a professional’s point of view, Realty.bots are not comparable to MLS systems, and they probably never will be. They are good for window-shopping by consumers, not for searching by professionals. But wresting control of the MLS away from brokers, somehow forcing them to produce content against their own interests, will not change anything that matters in the practice of residential real estate representation. The reason for this is simple: What is wrong in residential real estate representation has nothing to do with the MLS itself.

We’ll come back to that. First: Buyers buy from the selection that is available to them. This is true of everything Read more

The RE.net waist-loss challenge

When I met The Leggy Blonde, I had a 34-inch waist. I was working out for at least 45 minutes every day, and I was maybe a can-and-a-half short of six-pack abs. I had been through a pretty bad car accident, and being in good shape was a secondary consequence of re-mastering the art of ambulation. (I can’t run at all, if you want to challenge me to a contest you know I’ll lose.)

Things change. Being enthralled by a woman takes time, and among the blocks of time I devoted to being enthralled — then being involved, then being a couple, then being a team, then being espoused — was the time I had spent working out. I have worked from home since 1993, and in all that time the refrigerator has never once forgotten my name.

By now I have a 45-inch waist, which doesn’t even count this great bulbous thing that hangs over my waist. I’m 47 years old, but I have always felt like I was 19. I weigh about 250 pounds, where I have always felt like I weigh about 160. I never, ever cease to be surprised when I see this old fat guy staring back at me from the mirror.

At the New Year, I resolved to do something different. Until the last ten years or so, I had always made time to read for pleasure. And, obviously, I haven’t been making time to work out. Now and then, catch as catch can — not enough. So I resolved to put in at least a half-hour a day on the stationary bike, this so I could also read at the same time.

The reading part is working out fine. I know the exercise is also working out, because I can feel the strength in my thighs, calves and glutes. My wind is better, and my overall stamina is improved. But I’m not seeing any visible weight loss. I’m not worried about losing pounds, so far, because muscle mass is more dense than fat. But I would like to see some evidence of evaporating fat.

Take it to the next Read more

INTERVIEW: Lenn Harley of Homefinders.com

lennI interviewed Lenn Harley of Homefinders.com, a buyer’s brokerage in Maryland and Virginia (DC suburbs). Lenn is one of the true pioneers in online real estate brokerage. She figured out the power of internet marketing for real estate services while redfin.com’s Glenn Kelman was marketing data servers and zillow.com’s Lloyd Frink was convincing Bill Gates to get into the travel business.

I bring this up not to discredit Messrs. Kelman and Frink but rather to highlight the gutsy business model Lenn pioneered. If Time Magazine dubbed 2006 as the year of “YOU”, then Lenn Harley has been one of “YOUR” facilitators for the past thirteen years.

Lenn, why don’t we start off with a recap of your career. You mentioned that you built your business on “in-house relocations” at a big brokerage then struck it on your own when you discovered the power of the internet.

I was an analyst with the government specializing in FOIA review. Following that, I operated a title company in conjunction with a local law office. When I started real estate practice, I found that I preferred working with buyers, contrary to the 1980’s mantra of list, list, list.

In 1994, I left the mega-broker to practice buyer’s agency. I generated sufficient business for a comfortable income but I was missing the relocation buyers because I didn’t have a “relo” connection. Then, one day with the TV in the background, I heard an interview with an attorney who had a “website”. It was like an epiphany. I thought, “THAT is the way to appeal to relocating home buyers.”

I started to “study” the Internet in mid-1994. In early 1995, I took a few “Introduction to the Internet” courses and by March of 1995, I was ready. I interviewed web design companies and hired one to design a web site for me. I had my first Internet settlement, a civilian army employee relocating from Germany to Andrews AFB in Maryland by the end of the year.

So, it worked?

Brian, I just “love it when a plan comes together”

Were there fears or trepidations or were you confident in your strategy?

There was Read more

First Russell Shaw Sales Success symposium scheduled for Tuesday, March 13

Mega-producing Realtor and BloodhoundBlog contributor Russell Shaw is hosting a series of Sales Success symposia for striving Realtors. The purpose of the events is to establish the most vitally-important points to be covered in a sales training curriculum, to be produced in the coming months in audio and video podcasts. Russell will address larger meta-topics and then entertain questions from the audience to unearth smaller but still important sub-topics to be addressed in the podcasts.

The first of these events will be held on Tuesday March 13, 2007, at the offices of North American Title, 3200 East Camelback Road, Suite #150, Phoenix, AZ 85018. The event will run from 6:30 PM to approximately 9:30 PM, and refreshements will be served. There is no charge to attend. Russell will handle two meta-topics, followed by question and answer sessions, with a short break between. North American Title and Worldwide Credit Corporation are sponsoring the event and will make short presentations.

Who should come? A striving Realtor is one who has learned how to stay afloat in this business but wants to learn how to build a bigger, more profitable business. In other words, if you’re a brand new agent or if you’re happy with your current level of production or if you’re already a top-producer, these symposia are not for you. Because Russell is building the curriculum for a full-blown Sales Success training course, his goal is to hear from the Realtors who want most to learn the lessons he has mastered in his career.

If you would like to attend this event, fill out our RSVP form. The space available to us is limited, so don’t fill out the form unless you know for sure you can attend. This is an opportunity to learn a whole lot even as you help other Realtors learn a whole lot — for years to come. Plus which, it should be a lot of fun…

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What’s The Biggest Myth When It Comes To Investing For Your Retirement?

Though I’ve written posts on this subject before, sometimes my zeal to spread the word is renewed by contrary opinions. Of course, when it comes to how folks feel about this subject, you find that very little real analysis was used. I think the problem at times is exactly what analysis is done. Most folks will say putting their money into the bank for a 2-3% return is inferior to paying down their loan because if the interest rate is say, 6%, then that’s what their money is earning. True enough. But that’s the wrong analysis to say the least.

Since it will take literally hundreds of thousands of dollars to pay off that very loan, why not take all that money and grow it at 3-10 times that rate? How you look at this question could very well determine whether you have a great retirement or live out a self-imposed life sentence.

Love CanyonSmall Love Canyon

My own grandpa passed away 15 years ago. He was a well known artist, one of those rare breeds who made a decent living while still alive to enjoy it. His paintings still sell for $5-30K apiece. He painted until his health went down hill. He was in his 80’s. It’s a good thing because he and Grandma had their monthly Social Security check plus money from sold paintings. They worked hard to pay off their home loan, which was under $20K upon his death. Yet they would have been behind the 8-ball if he hadn’t been able to continue painting as long as he did. They were inches from having their Depression-based dream of a free and clear home.

Grandma couldn’t afford to live there when Grandpa died. (Though she still would have moved due to her age & heath.) She had to rent out the house to supplement her income, while moving into one side of a duplex next to one of her kids. She was now renting, while owning her home which was just about debt free.

And she and Grandpa did this on purpose.

They lived a frugal life. Their only travel was to destinations Grandpa painted, or Read more