BloodhoundBlog

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Darth Vader With a Toothache – A Better 2010

Ever looked over at the agent down the hall and wondered how they get from home to the office without hands-on help? They usually didn’t get past the front door back in the 1960’s, at least in our offices. I remember vividly that you were tough or you found another place to work. Cream puffs generally didn’t get too far into Dad’s job interview before they knew they weren’t in Kansas anymore. There was no such thing as laser beams back then, unless he was starin’ right through ya.

Dad used to conduct what I’ll call no nonsense weekly meetings back in the mid-20th century. Attending my first one three days after my virgin day at the office was, um, eye opening. It was Tuesday, October 21, 1969. Dad was his usual toned down Zig Ziggler self, with undertones of Darth Vader nursin’ a toothache. It was the first time I’d ever seen how others perceived him as a boss.

They soaked in every word as if he was readin’ off the third tablet Moses lost while coming back down the mountain. Though I could believe it cuz he was hugely successful (1,000 sides/yr), and arguably charismatic, I wasn’t sure about ‘why’ he was viewed this way until much later. One thing for sure, you worked for him or you took up space elsewhere. Even though the firm did so many sides a year, he never had more than 28 full timers, complimented by a dozen or so part timers. To this day I’m convinced the profile of his typical agent was ‘assassin’.

This is all prelude to explaining how a one act pony like Dad (his words, but painfully accurate), went from zero to over a 1,000 sides yearly in just over a year. Ryan Hartman’s excellent post about dominating the market struck a deep chord with me. Not just because it reminded me of the ‘good ol’ days’, but because I think he may have found the key to the mint.

That aside, the plan, whatever it may be, is secondary to the combination of unflappable belief and consistent, Read more

Looking for the beacon of progress for American cities? Forget Portland. Forget Houston. The road we’re on leads to Detroit.

From PJTV.com, a bone-chilling exposition of how the entitlement mentality killed one of the great American cities:

There but for the grace of god? Not quite. Detroit is just the leading edge of a wave of entitlement thinking that is engulfing what was once the beacon of human liberty for the whole world.

We scorn philosophy at our peril. For more than a century and a half, Americans have been asking profoundly important philosophical questions — and giving the wrong answers.

“What do the rights of the individual matter when people are starving?”

“How can you worry about private property rights when people are homeless?”

“Health care is a collective responsibility. Why should you be free to escape it even if you can pay your own way?”

“How dare you claim a right to personal autonomy when your personal autonomy is destroying the planet!?!”

Don’t bother to ask yourself what America will look like when the concept of individual rights has finally been eradicated from our philosophy. We already know the answer to that question. It will look like Detroit.

Who’s Afraid of Redfin.com?

Bob Haywood, an Owasso, OK real estate agent makes a case for why you should be aware of Redfin.com.  Bob articulates, from behind the cloaked wall on Active Rain, why Redfin.com is the REAL agent of change in the real estate industry.  Read what Bob has to say:

You should pay as much or more attention to Redfin and what they are doing than you do to Zillow. Am I saying we should ignore Zillow?  No!  But the group who has the potential to really change real estate is Redfin, not Zillow.  And here’s why…Zillow is just an information source.  So they give lots of information.  Yippee.  The information real estate vault is now open to the public.  Zillow is just one of many players in the information delivery game.  And guess what?  Zillow exists at the 20,000 foot level.  Their information is not very accurate.  You and I exist on the ground level.  We know our local real estate market in ways that Zillow will never know.  We know what actually sold.  What it sold for.  What it is actually worth and often, what is about to come onto the market.

Fear Zillow.com?  “Not so much”, says Bob and I agree with him.  Zillow introduced the  Zillow Mortgage Marketplace and it has had no impact on my business these past 18 months.  Only one consumer has referenced Zillow’s mortgage rate quotes in their negotiation with me.   That consumer did speak a lot about the Zestimate and its inaccuracy; that inaccuracy actually helped me in the negotiation with the consumer because it threw a shadow of doubt upon the accuracy of the mortgage quotes they offer.

And that is why you should watch Redfin. Redfin is a ground level company.  They are attempting to take the information and link it to agents on the ground.  That’s what makes them dangerous.  If they ever get their feet under them and decide that they actually want to be a player nationwide, they could just change the way real estate is bought and sold.  And if they do, they could end up owning (many of) us.  Already, Read more

Are email drips equal in ROI to snail mail drips?

When I established Worthington Realty about 1.5 years ago,  I wanted to always be experimenting with what I could do to convert leads to closed sales.  So I set out to have the best email drip campaigns as well as the best snail mail campaigns.  I have had much more success from a snail mail campaign than I have had from an email drip campaign.  I often question myself…what I am doing right and what I am doing wrong!?!

The snail mail has a thick stock cotton style envelope.  Inside is a high definition business card, high definition tri-fold resume & a typed letter about me on one side & how I can help on the other side.  I feel the presentation even though I’m not in person and doing this by snail mail is so powerful that customers call; about 2 out of 100 mailers to be exact.  Generally speaking, I usually list and sell the property.  I ask myself the question, what if I implemented a follow up snail mail campaign after the initial mailing?  I will report back with my results in a future post.  Can I close more snail mail sales as opposed to just one mailer, why not 3 or 4 snail mailers, especially on quality listings?

The email drips seem to have less response than a snail mail campaign.  Surely I have closed leads off of my website and then referred from those sales.  BUT, my conversion rate is far less than 2% like the snail mail.

My take is simply this.  Email drips do work, but are easily forgettable to consumers.  Snail mails are more expensive but since the consumers are physically touching quality materials, they are not easily forgettable as apposed to emails.  Your thoughts?  So much for my quest to go paperless…

Yelping Googly Trulia! Is Google is doing some last minute Holiday shopping?

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All this week there has been a lot of buzz around the interwebs about Google’s possible acquisition of Yelp.com. The local reviews website has been wildly popular almost everywhere I have been in the country and could stand an image makeover in my humble opinion. One big enhancement could be the business user side to there social networking and business placement. Something Google is doing a good job of with their “Place Pages” for Google search and maps (example: San Francisco Real Estate Services )

With Google Place pages, business owners have the opportunity to have a publish the content of a business page, including video, where as “Yelp for business owners” seems to be geared towards offering buy up features such as advanced profile control and targeted advertising to the tune of $300-$1,000 a month. I’ve never really cared for this option too much as an advertiser or a consumer and think that Google might do a much better job of providing what’s best for the consumer. Yelp’s approach has been, in my experience, at bit heavily controlled.

Yelp for Real Estate has been at best an ongoing resource of placement for you business, à la Citysearch, and some seem to think a resource where Reviews of actual agents should be found.

What else might be under the tree?

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Even Bigger news for Real Estate on the Google front broke just last night when Kara Swisher from All Things Digital posted about talks going on regarding the acquisition of Trulia.com.

It is unclear what price Google (GOOG) would pay, but sources estimate that Trulia’s valuation ranges between $150 million and $200 million, although there could be a big premium on that.

Rumors about Google’s interest in the real estate search market–and specifically in Trulia–have been rebounding around Silicon Valley for the last year.

But Google has pulled the trigger on a number of acquisitions of innovative start-ups recently and, sources said, will continue to do so.

There’s also been a lot of chat about Google’s interest in Real Estate in the online Real Estate space which is mostly about us looking inward. Google, in my opinion, is Read more

Unchained melodies: Real Estate’s 50 Most Inconsequential Online

Apparently I have been voted onto the Inman “News” list of Real Estate’s 50 Most Inconsequential Online. I have no direct evidence of this, just a bunch of tweeted twaddle that Tom Johnson turned me onto last night. Needless to say, I don’t plan to spend $80 to feed my already quite corpulent vanity.

This is my third or fourth year on the receiving end of this evolving “honor,” and, with some exceptions, Inman’s list is comprised of a company I am less and less comfortable keeping. BloodhoundBlog has always been about the consumer for me, and about practitioners who know how to put the consumer first. Alas, the RE.net by now just looks like more of the same — more sleazoids looking for ways to sucker broke-ass agents into paying three bucks a pop for rotten eggs. Deadwood was a fun TV show, but I don’t want my name soiled by the real estate equivalents of Al Swearengen.

I do want to take a moment to apologize to Brad Inman, though. I have offered up what I thought was sound business advice to the man — coated, to be sure, in what might seem to be a bitter pill. But I had assumed that Inman was a grown-up, and, as a demi-billionaire, presumably capable of dealing with a certain amount of acerbic wit. It turns out though — as certain lyrical twitterbirds have pointed out to me — that Brad Inman is in fact an infantile encephalic retarded paraplegic with a harelip — and thus my jibes aimed at him were not sporting. This, at least, is the only conclusion one can draw from the plaintive tweeted bleatings about my criticisms of Big Bad Brad that have emerged from other names on Inman’s list of Real Estate’s 50 Most Inconsequential Online.

Which is, just by itself, a good reason to say to hell with the whole magilla.

Meanwhile I can think of only one tune so perfectly suited to the occasion, Big in Japan by Tom Waits:

If you want to do right by your clients, you have no need to lean on me as Read more

One Turtle Dove

The Glass Ceiling

I remember the moment I decided to stop wearing a suit and tie in public—forever. It was a couple days before Christmas and I dropped by the K-Mart to pick up a punch bowl for the office party.  I was looming  in Housewares when an elderly woman approached me with a fistful of coupons.  Alvin and the Chipmunks were singing that insidious song through the sound system.

“I want to file a complaint.”  She said.

“I don’t work here.”  Me.

“You’re not the manager?”  She asked,  insistent.

“No. I’m not the manager.”  I replied, perhaps a little snippy.

She glared up at me like…well…like I was lying.  More than anything, I hate being implicated in an aspersion when I’m innocent. I’d rather receive three french hens every day for a year from someone I don’t truly love than be deemed a liar (unless of course, I actually am, in which case, I will simply deny until totally boxed in).

“This is an Italian suit,  lady. You need to find someone with a name tag,”  I continued, perhaps a little prideful.

“That lady over there said to ask  you. That you were a manager.” She pressed.

We turned our attention to a  squat woman in a burka, a rare sight in Richmond, Virginia in those days.

“That lady over there doesn’t speak English.”  Me, perhaps a little too loud.

“I speak better English than you,” the lady yelled back across the aisle.  “I speak five languages. How many you speak?”

Oh yeah.  One of  those days.  A blue light siren began twirling above my head and something inaudible was announced over the speakers, interrupting  the chipmunk falsetto drone. I froze as a wave of shoppers began scurrying  in our direction; something about cutlery.

“You don’t have this Foot Soaker in stock.”  The elderly lady shoved a coupon under my nose as the herd surrounded us.

“I know I don’t, ma’am…Because…. I. Don’t. Work.  Here.”  Me.

“She deserves a rain check,”  Burka lady. “It’s false advertising if you don’t. Bait and switch.”

“Yes. Bait and switch,”  Elderly lady.

Bait and Switch!”  Somebody yelled from the mob. “Bait and Switch….

About that time an employee approached me and ask Read more

VA Condominium Complex Approvals: Navigating the Maze of Paperwork

We helped to secure a lot of VA condominium complex approvals in 2009.    The VA Regional Home Loan Center-Phoenix is one of the best government agencies with whom I’ve had the pleasure to work.  The folks working there are professional and committed.  It helps that they know that we do our homework prior to submission for a condominium complex approval.

Sometimes, the system breaks down. My goal today is to explain how better to manage the process, for all parties involved.

The key component to the VA condominium complex approval is the Attorney’s Opinion Letter.  Essentially, the VA relies on the expertise of an independent attorney to evaluate the condominium documents and offer an opinion as to whether or not those documents comply with the VA regulations.  An attorney opinion letter is NOT a requirement for the submission package but attempting this without one is not recommended.  While it adds another layer of cost to the approval process, the result is a greatly reduced examination time at the VA.

The document checklist is available in Chapter 16 of the VA Lender’s Handbook.  Specifically, the table of required documents is available on page 16A.03.    I suggest that the loan originator AND both real estate agents AND the escrow officer review this table as soon as an agreement of sale is executed.  At first glance, the list appears to be ominous (lots of dead trees).  Upon more careful scrutiny, it is plain to see that only 5-6 documents are required; the other 20 or so are only required IF AVAILABLE.  The VA condominium complex requirements then are almost identical to what would be required for an FHA or conventional loan.

Still, the required documents are the required documents.  Failure to provide those documents can result in lengthy delays.  The reason is not because of the process, it is because of “trust”.  The VA trusts the attorney to properly vet those documents, the attorney trusts the lender to properly organize those documents, and the lender trusts the escrow officer and title officer to properly provide those documents in an expeditious manner.

Simply put, if you show that “you Read more

Next year we’re going to splurge — maybe — starting with the twenty-first thousand dollars for the month

Here’s my favorite Christmas card this year:

I helped Stephen and Suzanne Kranick buy that house in the weeks before Thanksgiving. I think it’s cool that they love it so much that they made it the star of their holiday card.

I put two houses into escrow today. I’ve done that before, but Cathleen and I are both packing transactions into January at a nice pace. I’m still holding out hopes for one more all-cash deal in December, but the calendar is turning on me day-by-day.

But here’s the thing: The pace we’re on right now puts us at $20,000 gross commission income a month for 2010. I’m sure that sounds like a lot of money to anyone who is not in the real estate business, but it ain’t. But our marketing costs are where they’ve always been — very low — so we’re right on the cusp of proving the claim I’ve been making here for coming on four years: It is possible to do this job without spending fifty cents on the dollar for client acquisition and without feeding a vast cadre of useless eaters.

It’s plausible to me that we could be at $40,000 a month by the third quarter, and from there it’s not a huge jump to seven figures, GCI, per annum.

But: Meanwhile: We are cheap bastards. We never hesitate to spend whatever it takes on mission critical tools, and that will always be the case. But we have been very tight on every discretionary expenditure for a long, long time. And as much as business has sucked over the past four years, it is being tight that has gotten us through the worst of it. A lot of Realtors didn’t make it, as we all know.

So: Cathy just had her birthday, and from me she got a 2 gigabyte memory upgrade for her iMac. So romantic…

But, even so, we can foresee that we are going to have a little money for luxuries in the coming year, and the question plaguing me has been how to manage that kind of spending without going crazy on the upside, as it were.

Here’s Read more

Looking for reasons to be cheerful this Christmas? Thanks to the free market, everything is better than it was when you were a kid

From Reason.TV:

It’s worth thinking about as statists strive to destroy innovation in medicine (via Obamacare) and industry and transportation (via environmentalism). If it gratifies you to weep about how bad things are, compare the America of your youth to the police states of Communist Europe in that same epoch. Whatever complaints you might have with liberty, things could be — and will be — a lot worse when you have unleashed the leviathan state on every aspect of your life.

Christmas and Natasha – only in America

2009 has changed me. It has been a year of struggle, victory, and in the end… of complete thankfulness for all of the good things that I have in life. Living in America is one of those good things. Living with a family that loves me unconditionally is another. One of the lessons that I learned from this last year was to redouble my efforts to pay it forward and to give back.

I received an email last Sunday night from my friend Nancy Schafer that her efforts to host a child from an orphanage in the Ukraine had paid off and that 11 year old Natasha would be flying here on the 16th of December for an 18 day stay and hopefully to find an adoptive home here in the USA.

My mind raced back to my own family and then directly back to Greg’s Ramblin Gamblin Willy story about Anastasia. I am not a guy that likes Latin much and this to date was my favorite post that Greg has written. If you have not read it yet, please do. If you have, it is worth another read.

“Do your worst. I will not kneel.” has become a mantra that has stayed with me. And now when I thought of an 11 year old flying over 24 hours straight with no parents to meet an unknown person (as great and kind as I know Nancy is, she is an unknown to Natasha) I knew that I must try to help out in my own small way to make her stay here more enjoyable and hopefully help raise enough awareness so that she might enjoy the blessings that I have:

Living with a family that loves her.
Living in a free country.
Being free from the restraints of a caste system so that her dreams can in fact become a reality.

For those who may not think that America is truly the land of opportunity, I would simply contend that we build fences to keep people out while others build those same fences to keep people in. People are dying to get INTO our ‘hood. We Read more