BloodhoundBlog

There’s always something to howl about.

Month: June 2007 (page 4 of 8)

June 19, 2007

Status Quo Real Estate Investors Don’t Make Real Money

by

Real Estate Investor

Author website

I have never been a huge fan of the status quo. While I have some appreciation for the mundane, I would rather blaze my own trail than do things as they have always been done. Interestingly enough, this really comes in handy when approaching investment properties. Doing what makes sense to me may not be the status quo, but it makes me feel comfortable.

Recently, I was looking to close a deal on a 32 unit apartment complex. When asked by my agent how many of the units I wanted to look at, I remarked, “Uh, all of them.” He seemed taken aback by this, and then mentioned that taking a sampling of the units was the status quo. Perhaps looking at five or ten and then extrapolating what the other units look like is a tremendous timesaver. Lucky for me I had all the time in the world.

Interestingly enough all but four units actually looked good, but those four units looked really bad and had a material effect on my offer and the amount of concession I asked for. Looking at all the units would have saved me about $8,000 had I closed this deal. Even as an investment banker, I cant make $8,000 for three hours worth of work.

I will also take this brief interlude to point out the inherent conflict between realtor and investor. That extra two hours actually cost my realtor about $380 (3.5% x $8,000), plus two hours of actual work he could have done securing additional deals. Clearly the status quo worked in his favor. I don’t mean to suggest that is why he mentioned it, but I do mean to suggest that it is harder for him to work in my best interest when our incentives don’t align.

As investors it is important to remember that a deal and all of its components must make sense to you. While the status quo is surely there for a reason, it may not be in your best interest to follow the status quo. Many first time investors or investors who are unsure of themselves fall back on Read more

June 18, 2007

Zillow.com exemption: Arizona State Senate gives itself a frank appraisal, elects to seek out other feet in which to shoot itself

by

Suburban Phoenix Real Estate Broker

Author website

To all appearances, the attempt to criminalize Zillow.com’s Zestimations of Arizona real property will be all over when the fat lady signs. Not sings, signs. Arizona Senate Bill 1291, as amended to suffer Automated Valuation Models gladly, passed it’s final reading tonight. The amended bill passed in the Senate by a vote of 28-2. All that remains to be done is for Governor Janet Napalitano to sign the bill into law and things can… continue pretty much as they have all along.

Of late it seemed the legislature might recess without taking up the Zillow amendment, potentially exposing Attorney General Terry Goddard to the embarrassment of having to enforce his own and the Board of Appraisal’s idiotic interpretation of standing law. For all that I’m glad to see better sense prevail, that spectacle would have been amusing to watch.

In any case, assuming Napalitano doesn’t find some previously-unsuspected third foot to shoot herself in, this silly little drama should be over shortly.

 
Further notice: My details are a little off here, but Cathy Jager at Little Pink Houses has the straight dope.
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June 18, 2007

Jay Thompson, Greg Swann, weblogging and liquor: The First Southwest Real Estate Blogging Conference is on June 21st

by

Suburban Phoenix Real Estate Broker

Author website

Reminding you that Jay Thompson, the Phoenix Real Estate Guy, and I will be speaking the Phoenix Area Active Rain Gathering and First Southwest Real Estate Blogging Conference, to be held on Thursday, June 21st, at 3pm.

The event is being put together by Shailesh Ghimire of CTX Mortgage. Visit Arizona Mortgage Guru for more details.

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June 18, 2007

Real Estate Relationships: Do What you Say you Will Do

by

Real Estate Investor

Author website

The long absence is finally over. After a grueling finals week and graduation, a two week vacation, a move to New York City, and a failed real estate deal, I am back with the pack. Based on the great content that I have seen coming from the site, I can assume my absence has gone unnoticed. In order to come back with a bang, I thought I would share a quick life lesson about real estate. The lesson: Real estate is a people business, so it is important to do what you say you will do, and maybe more, but certainly never less.

Here is a quick example. My latest deal to buy two apartment complexes in Greensboro ended in utter failure because one person simply did not do what they said they would do. Before considering this deal, I wanted to be sure there would be enough financing in place to make it happen. While I could have really stretched, begged, and borrowed to get all of the 20% that I needed for the down payment, my trusted mortgage broker recommended I partner with a local investor. He assured me that he could find me a suitable partner within the 30 day due diligence period, so I proceeded with the deal.

To make a long story short, no partner ever materialized and I was forced to bow out of the deal shortly before the end of the due diligence period. Given my upfront nature, I had already informed all parties that this deal hinged on me finding a suitable partner, which over a group dinner my mortgage broker ensured everyone would happen fairly quickly. Fairly quickly, turned into days, then a month and still a partner had yet to emerge.

In the end the mortgage broker’s reputation was trashed after this deal. My agent, who does a lot of great commercial work in the area, has decided not to work with the mortgage broker again. Additionally, the seller’s broker has also black listed this broker, and I think it is obvious that it will be a cold day in a very hot place Read more

June 16, 2007

Who Is Facing Foreclosure?

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

IamFacingForeclosure.com is a weblog created by failed real estate investor, Casey Serin, designed to chronicle how he addresses the lenders he defrauded. I highlight the word “defrauded” because he intentionally misled the lenders by overstating his income and misrepresented his owner-occupancy.

Casey capitalizes on the American hunger for good drama and the time honored tradition of this country of “reinventing yourself”. Casey’s done a pretty decent job at it, too.

He’s monetizing his blog and has a book deal brewing. The publisher of that book has outlined his disputes with Casey as a guest author. The publisher is an apologetic for Casey’s unwillingness to “get a job” explaining his entrepreneurial nature and fame make him an unlikely candidiate for any “good job”.

I think the publisher and Casey are ignoring another time-honored American tradition of “starting at the bottom and working your way up” . I can’t blame him too much. Casey has recognized that this country just LOVES drama and collects over three grand a week for advertising on his weblog.

Now, Casey is kicking it at the beach in Australia.

I suppose I’m pretty old-school. I offer this advice if you’re facing foreclosure and “kicking it” on an Australian beach isn’t a part of it.

June 16, 2007

Refurber brings social networking to home remodeling

by

Suburban Phoenix Real Estate Broker

Author website

Via TechCrunch, here’s a new category for the taxonomy: Home Remodeling/Refurbishing/Restoration. The idea had occurred to me, but I wasn’t sure the category even exists in weblog form. Refurber, the site cited by TechCrunch, is not a weblog. Even so, it is the rarest of things in Web 2.0, a social networking web site that motivates return visits.

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June 15, 2007

Niggling Peeves: The NAR and How NOT to Conduct PR

by

Realtor, Associate Broker

Author website

It’s been a wonderfully grumpy week. Please indulge me:

When the NY Times came out with its piece on the Madison, WI FSBO market, the NAR typically over-reacted and sent out another set of talking points. Last time they did that — Sixty Minutes — they received some well deserved ridicule; I’m apparently not alone in finding talking points condescending and wholly counter productive. So this time they added: Please do NOT circulate this document.

Yep. That should help.

On a related note, today’s REALTOR&174; Mag email link gives a wonderful illustration on how spin backfires:

Poll: Few Consumers Know What You Do

A new survey by the Washington, D.C.-based Consumer Federation of America reveals that while 84 percent of consumers have a favorable opinion of real estate agents and brokers, many of them lack an understanding of the services that real estate professionals provide.

From which it’s easy to infer that people love us, even though they aren’t aware of all we do in a given day.

But. Here’s the actual survey. [Note I’m not defending the survey itself since it’s so badly conceived it exists primarily to establish its own conclusion.] The takeaway from the press release:

“Taken as a whole, these survey data suggest that consumers value the services provided by agents and brokers, and have usually had good experiences with these agents and brokers, but that their views are positive in part because of their lack of awareness of specific industry practices that could harm their interests,” said Brobeck.

Juuuuuuust a bit outside.

And the 84%? That’s the percentage of A) The 29% in the survey who’d bought or sold within the last five years; and B) who were rating their own agent. The generic number for all surveyed is 68% favorability, which means a third need a little extra convincing, more than would be required, say, by a set of talking points. One third is a serious number for a profession that begins its appellative with a capital and ends it with a circle R.

Speaking of which: You know the guy you meet at the cocktail party, the one who Read more

June 15, 2007

Questions answer why real estate license laws should be repealed

by

Suburban Phoenix Real Estate Broker

Author website

This is me in today’s Arizona Republic (permanent link). This is familiar turf to readers here, but I’m wondering if consumers might invest more effort in contemplating the issue.

 
Questions answer why real estate license laws should be repealed

The idea of repealing real estate licensing laws continues to percolate in my email, and I’ve written more on the subject at BloodhoundBlog.com.

I think I can make understanding this issue easier. Give a look to these questions. If you answer them honestly, you will understand why the real estate licensing laws should be repealed — even though they won’t be.

In the absence of real estate licensing laws, are consumers more likely or less likely to investigate the education, qualifications and experience of prospective agents?

In the presence of real estate licensing laws, are new licensees more likely or less likely to equate their status as licensed real estate agents with better-educated, more-qualified, more-experienced agents?

Taking account that they make profits when they perform their functions well and suffer liabilities when they fail, do free-market oversight entities seem more likely or less likely to assure consumer protection than government bureaucracies?

The same question on a more practical level: When buying electrical equipment, if you could have either government regulation or oversight by the Underwriters Laboratories, but not both, which would you choose?

In the presence of real estate licensing laws, are free-market oversight entities focusing on real estate transactions more likely or less likely to come into existence?

In the presence of real estate licensing laws, are alternative business models — radically different from traditional real estate brokerages but offering consumers more choice and possibly substantial cash savings — more likely or less likely to come into existence?

In the presence of real estate licensing laws, are traditional real estate brokers more likely or less likely to try to outlaw alternative business models offering real estate brokerage services to consumers for reduced or even no compensation?

Is there any consumer interest that would not be better served by repealing the real estate licensing laws? Even if you wish to assert that the laws offer some benefits to consumers, can you argue that Read more

June 15, 2007

If You Don’t Have Something Nice To Say…

by

Real Estate Rainmaker

Author website

RealtorWives.com Microphone ImageAs a reminder, I write from the point of view of a consumer/RE enthusiast (I’m a Realtor Wife). That being said, I’m noticing a little movement in the blogosphere that will be short-lived if I can help it.

Backstory: The Tomato addressed the fact that there are a vast number of terrible RE.net sites and blogs online and they ask “Where’s Simon Cowell When You Need Him?” My primary response was “yeah, where is Simon? These sites are terrible!”

Shaun McLane and I began an offline conversation about hosting a “Blogger Idol” site with a panel judging and commenting on the junky blogs in the RE.net sphere. Shaun started Posh’d and seemed like a good fit for two reasons (1) he and I were thinking in the same direction about a startup site and (2) he’d done a great job putting together the good blogs/sites online. At the time, Shaun was busy with his real job and said he wanted to involve me but wasn’t ready to launch. Then last week, in an effort to contact Shaun, I found the Idol site he’d launched- oh well, I wasn’t persistent enough, I suppose.

The great news is that I actually found his new site because I wanted to let him know that I thought it was a bad idea and I didn’t want to be involved. My belief that it’s a bad idea is confirmed today by the harsh RSS Pieces article that tears a blog a new one.

I think it’s fine that others are out there trolling for the worst of the worst, but here’s why I’m steering clear:

  • I would be infuriated if someone called my site out and used the word “sucks” and “crappy.”
  • Am I the Ultimate Blogger? So much that I find the need to go out and presume that I have the authority to denigrate others’ blogs? No, I’m not, so I’ll stay quiet.
  • Bad press isn’t always good press. Sure, I’ll visit the site once to see how bad it is, but I will have the impression that it’s bad (since it was dubbed as such) and I’ll never Read more
June 15, 2007

What makes a group blog work? It ain’t duct tape and baling wire

by

Suburban Phoenix Real Estate Broker

Author website

Drew Meyers at the Carnival of Real Estate blog has a post this morning on what makes multi-author weblogs work. He interviewed me, Dustin Luther of Rain City Guide and Jessica Swesey of Inman News Blog.

Like this: “What are the top three things that lead to a successful multi-author blog?”

My answer:

I’m tempted to answer talent, talent and talent. There’s more to it than that, though. BloodhoundBlog is blessed to have very talented writers, but we’re twice blessed that they’re such thoughtful, thoroughgoing people. Add to that they are so easy to get along with, and we have a killer line-up.

Lots more where that came from. Give it a look…

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June 14, 2007

PlaceBloggers? No…They’re Social Networkers!

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

They’re too classy to promote a potentially commercial site here so I’ll call your attention to it.

I caught a cool post about the Tale of My Two Cities by the Lady and The Top Dawg plays traffic reporter.

They incorporate a Zillow-y idea into a budding neighborhood social network where residents can register and contribute.

I’ll be able to say I was there when…

June 14, 2007

Zillow.com news: Broker listing feeds “coming soon,” a lender opportunity and no news is not good news in Arizona

by

Suburban Phoenix Real Estate Broker

Author website

From Jeff Somers at Zillow Blog:

Soon, we will be launching the capability for brokers to automatically upload their active listings for free to Zillow, reaching the more than 4 million people who come to the site every month — more than half of whom are in the market to buy or sell.

Even when we first launched the ability for listing agents and brokers to add their listings for free to Zillow last December, we knew we wanted to find ways to make the process even easier. We have talked with numerous agents and brokers around the country — and we have heard over and over that you want to send us listings through a direct broker feed. As I type, our developers are wrapping up work on a very simple tool that will allow brokers to automatically upload listings to the site and keep those listings up to date.

There is a form you can fill out to be notified when the feature becomes available.

Two days ago Zillow announced a similar sort of sign-up form for lenders. What might this mean? At the time, I held my tongue, since what I have to say is pure speculation. But with today’s news as hook, here are a couple of wild-eyed conjectures:

My guess is that they’re going to provide some kind of EZ lender hook-up for buyers and re-fi candidates. Perhaps LOs would have to assert interest in up to five zip codes or something like that. Zillow likes person-to-person contact, rather than engaging a nationwide vendor like Countrywide. If the presumption is that they’re looking for a comprehensively satisfying experience like Wikipedia or Ebay — and this is the presumption I work from when thinking about Zillow — then they’re going to want to facilitate relationships to be carried out on Zillow through time, rather than just throw off leads.

It is possible, using tax records and loan rates, to calculate profitable re-fi candidates: Homes that can be refinanced at a net savings, month-to-month, to the owner. Zillow has everything it needs to do this, and 70 million candidate homes to work from. This Read more

June 14, 2007

On the Sorry State of LOs and Equine Resurrection

by

Realtor, Audio Engineer

Author website

Now, having been an infrequent contributor, and feeling a bit like a schmuck for such, I am resolved to start writing again. So, I have applied what little magic I have left to resurrect a dead horse. With my passions aflame, I will ride this undead creature until such a time as I have said my peace.

Old topic, new bitch session. I recently had another home fall out of escrow due to a lying, conniving loan officer, whose ineptitude (at best) has caused untold misery. What was purported to be (verbally, and in writing) a stellar home buyer with exemplary credit and 20% down, has miraculously transformed into a miserable wretch with a 586 mid score, who’s attempting 100% financing on stated income for a $750,000 loan. My how people change!

Who can stop this nonsense? Sweet Jesus! I always tell my clients that they’ll know the deal is done when the money is in their bank account. Well, that’s no help, but it’s the truth. And in spite of my cautious demeanor, they insisted on putting 20k (non-refundable) on a new home. Ah, the sweet smell of optimism.

So, I am firmly resolved that no buyer shall have an accepted offer on one of my homes without either a fully disclosed and documented credit report, or being thoroughly scrutinized by a lender of mine or the seller’s choosing. Don’t like it? Don’t buy the home. If my clients decide to accept an unverified offer, I take responsibility only those items that fall within my purview.

For the love and Jesus and God, and the Holy Spirit, somebody hold these people accountable for a modicum of veracity, please!

Allen

June 14, 2007

Active Rain- Happy First Birthday

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Many of the contributors on Bloodhound are also members of the Active Rain Real Estate Network. Active Rain is a social networking site comprised of some 20,000 members in the real estate and related industries.

The ActiveRain Real Estate Network is a free online community for real estate professionals designed to help them promote and grow their business.

We celebrated Active Rain’s first year in business in Southern California last week at Parker’s Lighthouse in Long Beach, CA . Close to 100 people came to join Jon Washburn and Matt Heaton celebrate. It was a great opportunity to network with budding and established real estate webloggers.

Jeff Turner does a nice summary for us of the event. Happy Birthday Active Rain.

June 14, 2007

Blogging for Dollars – It’s time to make money.

by

Realtor, Associate Broker

Author website

As the tester at my second failed attempt to get my driver’s license said many years ago, I am easily “attracted and distracted”. That, and the fact that I at one point drove on the sidewalk, no doubt contributed to my poor marks.

On any given day, my To Do list would crush a Hummer. I have more lofty goals than I have time, but at least I am trying. I’m admittedly not a pioneer, but I am an aggregator. I read, listen, learn, and then assimilate the information and ideas in an ongoing attempt to build a better mousetrap.

This week, I owe my inspiration (okay, distraction) to Project Blogger and to Phil Hoover. Like a lot of you, I have been watching the Project Blogger apprentices at work, and have filed away a hundred good ideas. In particular, Greg’s insanely great idea fell under my “Why didn’t I think of that?” category. The hyperlocal or neighborhood blog is a concept which I have since been toying with, but I hadn’t quite mentally worked through the process. The problem for me was two-fold.

Time – There is never enough of it. I try to contribute here, and I have my own blog to feed. I also have to manage a static website (not to mention a real estate business). Duplication – I am currently knee deep in cross-contamination. I link from here to there to here and back to the other. Too much synergy, to use a word from the corporate muckity-muck dictionary, risks confusion, lack of focus, and ultimately a lost audience.

Enter Phil Hoover. In a series of emails, Phil has been keeping me posted on his efforts to expand his blogging efforts into the hyperlocal arena. We know him from his Boise Blog, more recently from his Eagle Real Estate Blog, and now, at the subdivision level, from the Brookwood Subdivision Blog. And I think he may have built, at least in concept, a better mousetrap.

Static websites and the dodo bird: One is endangered and the other extinct. I suspect I won’t get much argument from this audience of bloggers and Read more

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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