There’s always something to howl about.

Month: November 2007 (page 6 of 9)

Reasons Come First

Imagine your 6 year old daughter playing with a Rubik’s Cube fresh out of the box on her birthday. She notices the six completed, colored sides in perfect visual harmony, whites across from yellows, reds from oranges, blues from greens. She rotates the cube, studies it, and then, slowly, begins to turn it, first the top counterclockwise, then the left side clockwise, then the right and bottom. She finds it fun to rotate and manipulate with her tiny hands, and it’s cool how she notices the changing patterns of colors on each side. You wonder if she’s recognizing how challenging the puzzle has become, because you notice as she begins to slow down. As she stops and looks at you, you realize that the fun “flashback” gift (given to her by someone in your family) will become your challenge for the next several hours or days, because she wants you to fix it.

FILO! (my new word around the kids, thanks Geno), now what? It’s my fault for not noticing what she was doing in the beginning. I can’t reverse the steps. And, I wasn’t one of those genius kids 20 years ago that could finish it blindfolded, with one arm behind my back, or in a taxi, as portrayed by Will Smith’s character in In the Pursuit of Happiness. You’re probably thinking, most 6 year olds can rationalize to some extent that you can’t fix it, so they get bored and move on. Then, you bury the cube in the toy box and hope they don’t find it again, at least when you’re not around. But, imagine this scenario and that your 6 year old daughter, as mine is, being afflicted with autism.

There is no rationalization, no cute distraction that moves her focus away from the problem at hand, right now. It’s now my problem. And, I can either, throw the damn thing away, endure the hours of endless tantrums and hope that she never sees another Rubik’s cube ever again in her life, or I can solve it. I recall the line from the original Die Hard movie, “I eat Read more

Want Garlic On That Ice Cream? You Don’t Want Cash Flow On Your Capital Growth Either

Dad, when he was poor, survived on peanut butter and onion sandwiches — no lie, as I couldn’t make that up. 🙂

Though not nearly as weird, I like spinach salads with olive oil and malt vinegar. garlic ice creamI’ve not run into anyone else who likes it. They usually put balsamic vinegar on instead. Go figure. 🙂

I love garlic in my stir fry, onions too. The malt vinegar on my spinach salads might be a little quirky, but not up to the level of garlic on ice cream, know what I mean, Verne? Not even if it was free. 🙂

The same goes with cash flow. It goes well with retirement. In fact, surveys show it’s #1 on retirees’ wish list — more of it, that is. 🙂

You’re invited to my place, for a short weekend read on the subject of how cash flow can actually significantly reduce your ultimate retirement income.

The misuse, or rather, poorly timed pursuit of cash flow is maybe the most misunderstood factor in real estate investing.

While you’re there, try listening to a podcast or two. By far, the two most popular are Purposeful Planning and Grandpa Economics.

Enjoy your weekend.

A consumer’s guide to the divorced real estate commission: Cataloging benefits — starting with a complete catalog of available homes

Part IV: Divorcing the real estate commissions will result in benefits not just for buyers but also for their agents and for the real estate market as a whole

The National Association of Realtors is embroiled right now in a protracted anti-trust suit brought by the United States Department of Justice and the Federal Trade Commission. The case in a nutshell: The NAR has been attempting to use MLS rules to stifle lower-priced competition.

Recall that the NAR is a conspiracy against consumers. Its purpose is artificially to limit access to real estate representation, so that consumers will have to pay more than they might otherwise for real estate advice. The cause of action in the DOJ/FTC suit is a move by old-line brokers against young-turk brokers within the NAR. The trade organization stands accused of deliberately frustrating the objectives of its own members.

What is the essential data field in an MLS system — do you remember? It’s the co-broke. Everything else is just details. Every true MLS system exists so that real estate brokers can communicate — in presumptive secrecy — how much they will pay when a co-operating broker procures a buyer for a particular listing.

Can you think of one simple thing the NAR could do to make the DOJ/FTC anti-trust suit go away in an instant?

How about… divorcing the real estate commissions…?

Do you think that might work?

Remember that the MLS system is a vestigial engine of sub-agency, designed from the outset to advance the home seller’s interests — at the expense of the home buyer’s interests.

If we were to divorce the real estate commissions, the co-broke field would go away and with it the entire edifice of the top-secret MLS system.

Does this mean homes would no longer be listed? Of course not. But home listing would become a free-market business — with no anti-consumer rules on what material facts can and cannot be disclosed to buyers.

Without doubt there will be a shake-out period, with conflicts among vendors, errors of judgement, etc. — just as in any competitive marketplace. This will occasion much lamentation — before, during and after — starting Read more

HR 3915: Open Letter to Senator Dodd from a Veteran Mortgage Originator

The Hon. Senator Christopher Dodd
Chairman- US Senate Committee on Banking, Housing, and Urban Affairs
534 Dirksen Senate Office Building
Washington, D.C. 20510

Dear Chairman Dodd:

Soon, HR 3915 will be endorsed by the House of Representatives and most likely referred to the Senate. The committee you chair, will have an opportunity to read, discuss, debate, and amend this bill before recommending it to the general Senate for vote. I am a 20 year veteran of consumer financial services with the last 14 years in mortgage lending. I have helped over 700 families finance their homes and closed some 1700 loan transactions. I humbly submit my expert opinion to you for consideration.

The Libertarian in me begs you to do absolutely nothing; it’s the borrowers’ cavalier attitude towards financial planning that caused this mess. While my statement is true, it is but a component of the underlying malaise in the residential real estate industry; we adopted an even more cavalier approach to loan approvals and that irresponsibility is being felt by the investors who trusted us to perform adequate due diligence. Failure is a costly but cogent instructor; to discourage failure on both the borrower and investing lender sides of the equation might be more costly in the long run.

I oppose individual originator licensing in its proposed form. It doesn’t demonstrate true expertise and might induce a false sense of security to the consumer. This very act may very well damage the consumer by perpetuating the adolescent approach to financial planning the average American exhibits. It transfers the responsibility of prudent money management from the consumer to the license issuing body; sadly, those bodies are not up to the task.

I am a pragmatist so I know that my remarks about licensing, while philosophically pure, are impractical from a political view. Inasmuch, I recommend that the licensing requirements be strengthened to include any and all participants in the origination process: originators, processors, and underwriters. I further recommend that the license be national in scope so it is more consistent with the standardization mortgage securitizations induced. Read more

Birthing BloodhoundBlog.TV in time for the NAR Convention

We’re going to do the first run of a BloodhoundBlog.TV taping this Sunday night. My own life is a blur, but events are ganging up on me. I expect to have video posted by Monday early morning, before I take off for Las Vegas.

Cathy won’t be with me, alas. Her pneumonia might or might not be better, but the doctor is forbidding her to fly in any case.

I can’t speak for the others here, but I’m stocking up on MREs and pea-shooters for the NAR Convention next week. If you’re going, take your webcam and let me know you have it with you. We’ll do some interviews once you drag your tired carcass back to your suite.

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A consumer’s guide to the divorced real estate commission: We’re just sitting here at the closing table, watching the money flow

Part III: The who-pays-whom of real estate is not as simple as you might have thought…

All right, let’s go buy a house. I want to talk about the flow of money in a real estate transaction, and there is no better way of understanding that flow than wading right out into the middle of it all.

So let’s buy a house for $100,000. Where I live, in Phoenix, a hundred grand will get you a grungy dump. Where I grew up, in downstate Illinois, a hundred-thousand dollar house will put you among the diamond-crusted elite. Either way, it doesn’t matter. We’re not buying this house to live in it, but just so we can see who gets paid and how.

I want for us to buy this house with 100% financing — nothing down! — even though that kind of loan isn’t as easy to get as it used to be. Even better, I want you to take 3% of the purchase price as a concession from the seller to defray your closing costs. You’re going to have to put down an earnest deposit to show that you’re serious, but I like $500 for a house this cheap. Not only that, but, since there is going to be money left over from the closing costs concession, you’re actually going to get your $500 back at Close of Escrow.

Isn’t that cool? You just took possession of a $100,000 asset for not one red cent out-of-pocket. You bought a house for nothing. This is not a fantasy. I’ve done this for dozens of clients. But before you get on the phone to all your friends, telling them about your amazing financial skills, stop and think for a minute.

Did you just buy a house for nothing, or did you buy it by promising to make monthly payments for up to thirty — or forty — or fifty — years for principle, interest, taxes, insurance, HOA fees and private mortgage insurance?

Your lender pushed $100,000 onto the closing table, but he did it on the strength of your promise to pay all that money back and then some. Read more

Don’t Be Like The Part Timer Queen- You’re Embarassing To The Industry!

please don't be this personThe line was only two people deep at the UPS Store the other day but it seemed to take forever!  I had simply made four copies and wanted nothing more than to slap a dollar on the counter, holler “keep the change, no receipt, thank you” and walk out.  Here in Austin, the service isn’t always at the speed of light because people take the time to say hello and ask about family (we’re convinced we’re a small town despite the continuing population boom).  I felt validated in my hurry hurry attitude because I was on my way to mass and didn’t want to be late, so COME ON, MOVE IT!

Regardless of my toe tapping, the last woman in front of me didn’t even notice the overly emphasized sighs as she put her chest on the counter.  Yes, her chest- her very padded push up bra that was very stressed out to be a part of her wardrobe held her business up to the counter.  I think she was trying to impress the 17 year old cashier (who wasn’t impressed with the cougar chick).  After several more minutes of waiting, waiting, waiting, she finally cashed out.  Hooray, this is it, I’m almost out of here!

But no.  “Hey, if you ever have any odd requests, here’s my card.”  The guy asked “so what do you do?”  She did the hair flip over the shoulder with her mane of 80’s hair band blonde mess and said, “I’m so glad you asked!  I’m a licensed massage therapist and so is my husband!  If you are ever stressed out or know anyone who is, I’m great with my hands…”  Eww.  He didn’t act grossed out, what a gentleman.  “Great, I’ll pass this along.”  She picked up her purse and I inched forward, knowing I was already late for mass.

“Oh, and my husband is an EMT and I also sell jewelry- perfect for the upcoming holidays!”  She offered a little high pitched giggle as she hoisted her over-stressed boulder holder up some more.  “Cool.  Okay, have a great day.”  And then came the kicker that I had clenched Read more

How Stupid Would This Be?

I came to the conclusion (in about 1990) that text based communication was destroying the intricacies, nuances, and intimacy of verbal communication.  There are non-verbal cues that lend a richness and meaning to verbal communication that cannot be achieved with emails, text messages, instant messaging, and most pertinently, blogging. I do not mean to belabor the virtues of oratory or rhetorical skill, but perhaps I should. Because we have many gifted writers here on Bloodhound Blog, our writing skills enable us to infuse our text with meaning and richness, humor, pith, sarcasm, and emotion. The use of visual images in the form of emoticons and jpg images has helped to facilitate some of the lost intricacies of speech. Is this enough? Maybe, but I think we could do better. Now on to the potentially stupid part.

Imagine that I have something that I want to say (verbally) on Bloodhound. I open up the link, I click a button that says “Post,” a window opens up, and the beautiful botton says, “Click Here When Your Camera is Ready.” So, I straighten my tie and hair, make sure my portliness is portrayed from just the right angle, and launch. . .my webcam. So there I am, in all my humanity, sitting in front of the camera, saying what I want to say. Now, if and when someone wants to comment on my blog post, they do the same thing. Click the link, and start recording their response. Oh the richness! The humanity! Now, I realize that there would need to be a few advances in technology to facilitate this, and perhaps some ungodly amount of bandwidth potential, but think of the coolness! One of the things that really fills me with trepidation and hope is actually meeting the people who write here. I have met a handfull personally, and I must say that this opens up a whole new dimension to my reality. It really lets me know a lot more about these people. Some things I would like to know, for example:

Is Kris really that pretty, or is that a high school photo?

Does our Read more

You Have Your Real Estate Niche – Does Your Website?

Back in the day, I wanted it all. I obtained my real estate license, then my property/casualty insurance, then my life & health, and I was ready to get my mortgage broker license, as well. I wanted to OWN the transaction – and every transaction. Are you looking for a house in Kyle? I’m your man! Do you need a C-class multi w/ at least a 6 cap? Over here! And you know what my closing ration was? Neither did I, because I didn’t track it! I was too busy being the jack of all trades – and master of none.

Experienced agents have found their niche – residential or commercial aside, they’ve found their real niche: Downtown condos, specific areas, specific neighborhoods, specific lifestyles, and a host of other choices. You tend to gravitate towards what you like, or where you live. But while agents have gravitated towards their niches, most websites remain broad & sweeping.

Case in point

What did I sell? Who knows…looks like all of Austin. If a searcher found this site, they get NO specific information on anything. They can search the MLS – but they can do that on ~3000 other Austin agent websites (thanks Jim Olenbush!) They might as well have landed on ripoff.com realtor.com and if they enter their contact info there, they’ve entered it everywhere.

Web surfers are getting more & more sophisticated with their searching. While you still get a ton of “city real estate” searches, you’re also seeing more & more “neighborhood real estate” searches. Those browsers know exactly what they’re looking for, and they know when they’ve found it.

Niche websites won’t get the same traffic as a “jack of all trades” website, but they’ll convert like crazy. I’m in the process of working on Life in Steiner Ranch – because I know the neighborhood like the back of my hand, like working it, and love selling it.

In my humble opinion, this website is pretty – I happen to be very good friends Read more

The Search Friendly Blogger-Oxymoron or Perfect Weapon?

In the beginning was the Keyword…just kidding!

But that is how many SEO focused obsessed people look at it. After reading Kris’ post I could empathize with her position. Why spend hours fretting over well placed keywords. It is enough time to find the right methaphor and not leave dangling participles. One cannot (without divorce and a 30 hour day) do both…right?

And even if we get beyond the aspect of time. Then there are all of these pages of content to write that are stuffed with keywords…a journalistic sacrifice at the altar of the almighty Google. You feel like you are selling your soul for traffic…and at that traffic that may or may not be interested in buying or selling a home in your area. Why bother. Either we have standards or we do not as bloggers, right?

I am sure that there are other concerns as well…for brevity’s sake I will confine the concerns to those..just understand that I can empathize.

You are RIGHT. Taken on the whole and not individually.

Frank admission #1: There is only so much time. Too often SEO focused folks DO sell their souls for traffic in my opinion. We all have to make decisions and I have made many decisions in the past that I have looked back and regretted. I hope that is honest enough and blunt enough. They focus on how many links and how many keywords that they can stuff here and there.

They often lose journalistic integrity. They often do not write for the love of the industry or the love of convincing others of their value. They are writing to please an algorithm. Scratch that…they are simply writing to get over on an algorithm.
That said, the reality for search engines is that they are after essentially one thing–relevance. Relevance = traffic and success for search engines. This is something that TRUE blogs (and yes, TRUE bloggers) deliver better than almost anyone else.

The content is fresh and frequent. The points that are made are direct and on target. They are convincing.  And good blog writing is a talent and gift. Geno, Russell and Kris (just Read more

Web 2.0 is dead, Web 3.0 is on its deathbed…

R.I.P. WEB 2.0- WE BARELY KNEW YOU

If you haven’t been following the rhetoric on tech sites such as Mashable, you should get started.  Many people are just grasping the concept of Web 2.0 but did you know it’s already dead?  So, we move on from shiny badges and transparent speech and move to Web 3.0 with network integration.  That’s the ticket (to steal a line from Jeff)!

But wait, that ship is already leaving the dock!  Just as you grasp Web 2.0, Web FOUR POINT OH is born!!!  Get ready tech nerds and noobs alike- the competition is cut throat to find the perfect mathematical equation to apply all of this new data. 

Who do you suspect is at the starting line while most people didn’t know a race was even on?  Let us know in the comments!

A Big Hello From Austin! Here’s Where My Head’s At

Hello to everyone! Let me start out by saying that I’m flattered/excited to be here…I’ve already received two congratulations from colleagues who (already) read Greg’s post (about 5 hours ago) and my Google alerts have already hit me for “eric bramlett” with the same post. Let’s just say that BHB carries some weight, sucka!

Well, since I completely copped Blackwell’s style by asking to write here, I thought I’d continue my “flattery by imitation” and start out with an intro post that shows my point of view, and you guys can go ahead and infer how my occupation(s) shape that POV.

1) Entrepreneur. This is first & foremost because it’s what I am. I love to think outside the box, hate having a boss, & love making money. As an entrepreneur, I’ve come up with a total of 3million business plans, successfully implemented one, and successfully failed one. I have a couple more I’m seriously brewing right now.

2) Realtor. Because it pays the bills, and I’m good with people. I take pride in my work, and treat people fairly. I disclose any bonuses before contract (Greg) and honestly look out for my clients’ best interests at all time.

3) Broker. I wish it paid the bills, but it doesn’t. I hang anywhere from 8-12 agents’ licenses at any given time, and about half of them depend on it for income. I like helping them, and love watching them succeed.

4) SEO/SEM. I’ve jacked w/ TONS of marketing, and online fits me well. I’ve successfully marketed multiple websites, and think I know a little bit about the subject. I’m looking forward to (finally) meeting a bunch of friends @ Pubcon this year.

So…that’s where my head’s at, and those are the subjects that I will bring to the table. Hopefully, I can start some lively debate, and I hope I can contribute as much as I will learn!

By the way….Where’s YOUR Read more

Table for twenty, please — it’s a big party

We’re adding another hound-dog today, Eric Bramlett, a real estate broker from Austin. That makes nineteen in the list of frequent contributors, and, while I don’t have specific plans for a twentieth, I expect to see that slot filled shortly.

Here’s the scoop on Eric:

Eric Bramlett is the broker and co-owner of One Source Realty in Austin, TX. An active voice in the RE.net, he has also written for Broker Agent News. His interests include SEO/SEM, blogging and web design.

Eric has been howling at the gate for a few days, so I’m just going to turn loose of him and see where he runs.

There was a time when I wondered if we might someday all get together in one spot, all the BloodhoundBloggers at one table. Now all I can do is imagine the hell we’d make of some poor waitperson’s life…

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Chasing My Long Tail – My Truth About SEO

chasing-tail-2.jpg 

I found myself this morning checking out our blog traffic stats. I don’t know why I do this exactly – It’s idle curiosity, I suppose. I’ll know when my blog hits the big time. That will be the day when I am so busy meeting with clients and closing escrows that I won’t have time to visit our site’s back end.

We blog for sport, we blog for exposure, but mostly we blog for business. There – I said it. Anyone who says otherwise is not being honest. Oh, sure, it has become an addiction, and I sincerely believe that if I retired from my day job today, I would still be blogging tomorrow. It can have that kind of hold on you.

In the meantime, blogging needs to either be a hobby or a component of my business plan. As of press time, it is a little of both. Speaking to the business side of things, my Google-ability is generally of very little concern to me. “Blasphemy!” you say. Let me explain.

Unless the person stumbling on to my site through a search bar is looking to buy or sell a home in San Diego, they are of no value to me from a business perspective. Further, I am most interested in the person who is looking to buy or sell a home in San Diego and who actually lives in San Diego. Sure, there is the potential to attract the eyes and business of people relocating from Duluth, but relocation business is time intensive, needle-in-the-haystack work. We welcome the work, but it is a lower percentage play, much more difficult to cultivate and convert. So if you agree that the local audience is the audience for which you perform, why give a fig about SEO?

Everyone give a warm welcome to Panama!

Jay Thompson through one of his posts turned me on to Who’s Amung Us. They have a nifty little map widget that allows you to display current and past visitors to your site and their location. Here is what my visitor map for the San Diego Home Blog looks like:

amungus.jpg

(Note: The previously posted real-time map has Read more

A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?

Part II: How buyers can finally take a seat at the grown-up’s table

When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, “How much do you charge?” A motivated seller is done with the house, and now all that matters is money. Sellers — usually — are practical, phlegmatic and open — if not at first then eventually — to logical persuasion.

Buyers, on the other hand, are giddy and emotional and mercurial and fun. They are on a safari to capture something big and exciting, and mere matters of finance are the farthest thing from their minds. This applies even to move-up buyers, people who are also selling their current home to buy the next one. On Friday evening, meeting about the house they are selling, they are coldly rational. On Saturday morning, shopping for the new house, they are swept away by their emotions.

Why do sellers pay the buyer’s agent’s commission, with or without sub-agency? Because it works. Buyers get to look at houses “for free.” The agent will set up searches “for free,” driving the buyers from house to house “for free.” And when it comes time to write a contract, the more the buyers pay for the home, the more the buyer’s agent will get paid. The seller is paying a percentage of the sales price, so the buyer’s agent’s pecuniary interest is aligned with that of the seller, not the buyers, his nominal clients. But — what the heck? — it’s all being done “for free.”

In the feast of residential real estate, buyers sit at the kiddie table and they don’t even know it. If a buyer even thinks to ask who is paying for all these free gifts of information, transportation and advice, the buyer’s agent will blow him off by saying, “Oh, the seller pays me.” We like to think we are smart shoppers, suspicious if not outright cynical, but no one ever thinks to ask, “The seller pays you for what?”

There’s more. Since the advent of buyer brokerage, the claim has been that Read more