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Second Russell Shaw Sales Success Seminar: Podcast #4

Linked below is the fourth of five podcasts from the Second Russell Shaw Sales Success Seminar. This event was held on April 17, 2007, and lasted for about three hours. That seminar, along with another held on March 13, 2007, are precursors to the forthcoming Russell Shaw Sales Success FAQ files. Russell will take questions from these podcasts, along with others you send to him by email, and answer them in a series of FAQ-like video and audio podcasts. His plan is to end up with a complete real estate sales training course in podcast form.

This podcast is available in audio and video format, each covering the same content.

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I’ll bring you a big basket of cash if you’ll let me sell your house for free

Chris writes:

I’m looking to get into real estate after i graduate in a couple of weeks but i have a couple of questions that i’m looking to get answered, appreciate your help.

If all real estate brokers in an area generally charge the same fee for selling a house, how do real estate agents compete with one another if they cannot vary their fees? Also is the real estate profession overcrowded in your judgment?

Yes, the industry is horribly overcrowded, there are way too many agents chasing too few deals for all of the agents to make a decent living. This has been a true statement for at least the past four decades. 13 out of 14 agents fail and leave the business within two years. bugAll real estate brokers do not charge the same fee. Some brokers charge 6 – 7% to list and sell a house and others charge half that amount, some companies charging a flat fee of $300 – $500 to list a house. There is now a company affiliated with Buy Side Realty who will list the house at ZERO. Correct. A FREE MLS listing. And when you buy a house through Buy Side, they will give you back 75% of the commission. These companies are already “national” unlike the endlessly commented upon Redfin, who only has offices in a few cities.

A company was started some years back called HomeGain that was initially based on the premise of agents blindly (they wouldn’t know who the seller was – but the seller would know who they were) offering to list a home for less. The agent who offered the lowest commission won the prize of getting to list that home. This company was started by Bradley Inman and he sold HomeGain for enough money (tens and tens of millions of dollars) so he can now devote as much of his life as he wants to working on getting agent’s commissions down.

Then, how DO agents compete with one another? If you are in the business and working on getting business, you somehow contact someone and let them know you are Read more

Got back-up? Entire issue of Business 2.0 lost two weeks before press time

From TechCrunch:

The June issue of Business 2.0 magazine was inadvertently deleted from the editorial server on April 23, according to a number of sources. And the backup server wasn’t working properly. The result? An entire issue down the drain just two weeks before press time.

[….]

A 2003 article in Business 2.0 likened backups to flossing – “everyone knows it’s important, but few devote enough thought or energy to it.” I guess Business 2.0 forgot to floss.

Ouch!

One can only hope that the Chief Technology Officer’s resume was on another computer. It seems likely he’ll be needing it…

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Real Estate Investing For Retirement — The Human Factor

In the real estate investment side of the biz, everyone wants to talk endlessly about where to invest, how to invest, the best way to analyze the various investment factors, what needs analysis, and the rest. However, the most common factor left out of the process is the human factor.

How is the human factor described in the real estate investment process? Comfort zone.

There are any number of issues that can cause investor anxiety.

  • Not fully understanding the loan itself or the loan process
  • The size or lack thereof of the down payment — sometimes size matters
  • Acquiring property out of town, even out of state — “I can’t drive by!”
  • Tax deferred exchange worries — “What if something goes wrong?”
  • The timing of the acquisition — “Isn’t this a bad time?”
  • Just making investment decisions about when, where, why, and how

Most of the time comfort zone issues can be either minimized or eliminated by filling in areas of ignorance. I remember a client who was very afraid of investing out of state because if a tenant moved out she’d have to fly there. Obviously we hadn’t talked too much about out of state investing at this point. She was pretty anxious about it though, and was dead set against even considering such a thing. Once we explained the management team we had in the cities under discussion she relaxed a little. When we immediately called one of the management company owners (on speaker) and discussed the process her whole countenance changed. She now owns several properties in another state.

There’s nothing more soothing to a comfort zone violation than a knowledge injection.

hypodermic

Of course, the problem our San Diego clients face is there’s no real upside to investing locally. It’s not that in the next 5-10 years our local income properties won’t experience appreciation, because they will — it’s a given. But when was the last time you heard an investor talk about the great investment opportunities he uncovered in San Francisco residential income property? San Diego isn’t quite at that level yet, but they might as well be. When there are half a dozen areas within a couple Read more

A picture of The Third Career: If we’re not blogging for business, what are we blogging for?

By way of ProBlogger, this image is from 901am. It nicely illustrates the idea I called The Third Career when the BloodhoundBloggers were interviewed by Dustin Luther of Rain City Guide:

Q: How does blogging fit into the overall marketing of your business?

A: [….] Greg Swann: Practically speaking, it doesn’t, but I don’t think that way. What we’re really up to is an idea I call The Third Career. Most of us came to real estate from something else, and, as we are wise, we know this is not our last stop in the world of work. My immediate goal for BloodhoundBlog is to make it the best-read, most-rewarding real estate weblog in the RE.net. Further out, I want for our contributors to be so well known that they can pursue other opportunities: Public speaking, freelance writing, books, seminars, television shows, etc. I don’t know that we will attain this, necessarily, but the goal itself is definitely attainable: Witness Glenn Reynolds, the Instapundit.

None of this is of immediate importance. Right now, we are dancing as fast as we can to do the jobs we get paid to do — even as we build this weblog, becoming better and more widely known with each passing day. Witness: BloodhoundBlog contributor Brian Brady will be speaking at Inman Connect. That’s two of us — so far. The chart illustrates the opportunities we can hope to exploit as we become better and more widely known.

Muestrame el dinero? It can wait. I’ve mentioned that I’m interested in repurposing the Weblogging 101 content as an ebook. I expect that, once I’ve done it, that will turn into speaking opportunities. Whether or not those are worth any money is less interesting to me than the opportunities themselves. If I can do a job often enough to get good at it, I can find a way to make it pay.

Here’s another, similar example: Steve Leung, whom I have praised in the past, has released a free 69-page “Silicon Valley Home Buyers Book”. The book is in PDF form, hot-linked throughout, so it’s actually more practical as a net.wired document, rather Read more

Second Russell Shaw Sales Success Seminar: Podcast #3

Linked below is the third of five podcasts from the Second Russell Shaw Sales Success Seminar. This event was held on April 17, 2007, and lasted for about three hours. That seminar, along with another held on March 13, 2007, are precursors to the forthcoming Russell Shaw Sales Success FAQ files. Russell will take questions from these podcasts, along with others you send to him by email, and answer them in a series of FAQ-like video and audio podcasts. His plan is to end up with a complete real estate sales training course in podcast form.

This podcast is available in audio and video format, each covering the same content.

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Estonia when you’re trying to be so good, Estonia just like they said they would

Wit is easy, much easier than writing a real joke. But wit, even more than poetry, may be the bright-line dividing mere knowledge from true fluency in a language. To unpack the very dumb headline of this post, you have to know not just English, by far the richest human language, but the lyrics of Bob Dylan. And the richer your cultural context, the better your ability to apprehend slippery wit.

(He did it again, this time with Latin: Hendo literally means I hold in my hand, I grasp.)

(Incidentally, Rainy Day Women #12 & 35 is about amphetamine, not marijuana, as all your stoner friends thought. Likewise Subterranean Homesick Blues (obvious, now, in the age of meth labs, yes?) and Visions of Johanna.)

But: All that is beside the point. Here’s something I think is marvelous: In response to yesterday’s post about the de facto confiscation of Steve Job’s house, BloodhoundBlog was linked by a weblog in Estonia:

Apple’i boss Steve Jobs tahab oma kinnistul asuvat 1929 Hispaania stiilis villat lammutada ja krundile midagi v&228;iksemat ehitada. Pilt siin.

Huvitav lugeda kuidas &252;ks kinnisvarablogija USA muinsuskaitseameti t&246;&246;sse suhtub. Swann BloodHoundBlogist arvab, et muinsuskaitseamet on &252;ks m&245;ttetu amet.

Of course, I have no idea what this says — although I love that double-o with the double-umlauts — but it doesn’t even matter. The post ends with, “Nojah aga pikas plaanis, mees,” and, whether that means “Damn straight!” or “What a buffoon!”, I think it’s beyond cool that this conversation is not only multi-national but multi-lingual.

In other blognews, The Real Estate Tomato brings us 10 ways to get all defensive and paint yourself into a corner. We are positively crawling with weblogging advice right now, not alone because of Project Bore-From-Within.

It’s completely plausible to me that much of this advice is utterly useless, but that doesn’t even matter. Learning to write a weblog is like learning to drive — a huge number of rules that seem best adapted to making you nervous and flustered, which in turn makes you make mistakes. Get over it. In due course you’re cruising at 23 over posted, fishing for french fries with one Read more

“Here’s a better idea: How about abolishing the state Board of Appraisal?”

This is from the Tucson Daily Citizen:

Zillow.com offers online estimates of home values. There is now plenty of public data available for computers to crunch to make the estimates pretty good.

According to Zillow’s Web site, in the Phoenix metro area its estimates are within 6 percent of the actual selling price 50 percent of the time, and 72 percent of the time they are within 10 percent.

Although Zillow states on its Web site that its estimates aren’t appraisals, the state Board of Appraisal has ordered it to stop offering them in Arizona.

Here’s a better idea: How about abolishing the state Board of Appraisal? Any property is actually worth whatever a willing buyer is willing to pay to a willing seller.

Lenders might want appraisers in whom they have confidence to ensure that the property will cover their principal in the event of default. However, lenders are big boys. They can set up their own certification process to obtain the expertise they want. There’s no need for government to do it for them.

I find this logic unassailable. But it does make me yearn to live in a town with a newspaper
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Second Russell Shaw Sales Success Seminar: Podcast #2

Linked below is the second of five podcasts from the Second Russell Shaw Sales Success Seminar. This event was held on April 17, 2007, and lasted for about three hours. That seminar, along with another held on March 13, 2007, are precursors to the forthcoming Russell Shaw Sales Success FAQ files. Russell will take questions from these podcasts, along with others you send to him by email, and answer them in a series of FAQ-like video and audio podcasts. His plan is to end up with a complete real estate sales training course in podcast form.

This podcast is available in audio and video format, each covering the same content.

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Arizona appraisal bill, amended to allow web sites like Zillow.com to operate, passes House, returned to Senate

Arizona State Senate Bill 1291, as amended to assure the legality of consumer-oriented Automated Valuation Models such as that used by Zillow.com, passed the Arizona House today by a vote of 52-3, with five members not voting. The bill will be transmitted back to the Arizona Senate for reconsideration there.

The amendments, proposed last Monday by Scottsdale Republican Representative Michele Reagan, include language that will exempt AVMs from appraisal licensing requirements with the stipulation that home valuations are provided at no cost and are not called “appraisals.”

The Arizona Board of Appraisal had issued two cease and desist letters to Zillow.com — but to no other free AVMs — demanding that the Seattle-based internet real estate start-up stop issuing home valuations in Arizona until it obtained an Arizona appraisal license. The Attorney General of Arizona had issued a similar letter to Zillow.com.

If the amended version of SB 1291 passes the Senate and is signed by the governor, free consumer-oriented AVMs will be able to operate without impediments in Arizona.
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Welcome to the People’s Republic of California: Steve Jobs cannot tear down his own house

Palo Alto Online:

The California Supreme Court does not want to hear about Steve Jobs’ quest to tear down a historic Woodside mansion. On April 25, the state’s high court turned down Jobs’ petition to hear his case.

Jobs, the CEO of Apple Inc., has been waging a losing battle against a group of preservationists over the fate of the Jackling house, a massive Spanish Colonial revival-style mansion built in 1926.

He said he plans to tear it down and build a new family home on the Mountain Home Road site, but has been thwarted by an ad-hoc preservation group called Uphold Our Heritage that filed suit to block the demolition

Jobs was granted a demolition permit by the town of Woodside in December 2004.

Uphold Our Heritage, led by Miami Beach resident Clotilde Luce, whose family owned the Jackling house in the 1960s, successfully halted the demolition, wining its case in both the trial court and appeals court.

Luce called yesterday’s state Supreme Court’s decision good news for preservationists.

Howard Ellman, Jobs’ attorney, could not be immediately reached for comment.

[….]

Jobs has said that he plans to build a much smaller family home on the site, and referred to the Jackling house, where he lived for 10 years, as an architectural “abomination.” In recent years, the Jackling house has been uninhabited and allowed to fall into disrepair.

If you find your mind entertaining any sort of idea that begins with the words, “Yeah, but,” I will show you the path to a perfect understanding of perfect justice:

Imagine a battalion of busybodies were telling you what you could and could not do with your property.

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The Carnival of Real Estate . . .

…is at TransparentRE. I can’t tell who won, so I’m left with the assumption that Kris Berg did not win, either with Sensible Flats and Social Responsibility or Houses Grow on Trees – Redfin Continues Quest for World Domination. O, cruel fortune!

Sadly, Jeff Brown, with An Example — How To Answer A Client’s Question, was also an also-ran at The Carnival of Real Estate Investing. Without intending to criticize, this Carnival comes off to me like a sort of hobby forum, something involving elaborate power tools and several exotic varieties of adhesives. Jeff writes about investing, so he’s always wide of the mark. The available categories in the entry form don’t even address what he does. Go figure…

But: In the somewhat-less-subjective world of “objective” journalism, Kris Berg emerges as a star Realtor in San Diego. More on this coup at The San Diego Home Blog.

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For Monday — An Eclectic Reading List

Andy Sernovitz knows how to generate word of mouth marketing. He’ll be speaking May 12th in Chicago at SOBCon 07.

His book is not only a must read, it may have the most impressive duo ever writing the foreword and afterword. Seth Godin wrote the foreword, with Guy Kawasaki writing the afterword.

He’ll be speaking at SOBCon 07. And if he’s good enough for Seth and Guy, he’s certainly good enough for me. 🙂 Of course another speaker, Liz Strauss is one of the highest ranked bloggers in the world. Both of her blogs Liz Strauss dot Com and Successful Blog, each have huge followings. Though there are several other very impressive speakers, the trip is worth it just to hear those two speak. I urge you to at least take a look at the book, and the Strauss blogs to get a feel for how much you could learn through your attendance. Look for the BawldGuy, ’cause he’ll be there.

Jonathan Dalton wrote about an example of agents who don’t have a clue. His post offers empirical evidence of what pros like Jon must face on a regular basis. It’s maddening. I know because on my side of the street, investment property, we must deal with agents who read a couple chapters of some guru’s real estate investment book, then commence to bury their unsuspecting clients in criminally stupid deals. I bet after you read his post you could name several of your own examples.

For a neck wrenching change of pace, and a reminder your job as a real estate agent just isn’t all that difficult, go here and read what real day to day hard work is all about. The next time you’re out there plantin’ signs you’ll be whistling. Why? Because you wo’t be loading pigs on a truck using ‘Redneck engineering’ to get it done. It’ll give you some perspective for sure.

Athol Kay’s wife, Jen, is interviewed on Real Estate Wives (and husbands). She sets the record straight on the life of a dedicated blogger. After reading the interview it seems to me Athol made a very wise decision Read more

Mortgage Minutes with The FHA Expert: Old Skool Guvvies May Solve the Subprime Meltdown

I interviewed “The FHA Expert”, Jeff Belonger of www.theFHAexpert.com in this 18 belongerminute podcast. This is my first interview so you’ll notice two things:

1- I sound like the used auto dealer in a small town that bought the town’s only radio station; I’ll work on the delivery.

2- Jeff, from my hometown of Cherry Hill, NJ, brings out my “Philly accent”.

Some links to follow along:

Creative Financing: FHA Loans

Creative Financing: The Nehemiah Down Payment Assistance Program

Pre-Approval vs. Pre-Qualification

Thank you to “The FHA Expert”, Jeff Belonger, for his patience and professionalism. He can be reached at (800)-291-7900 or at www.the FHA expert.com

Second Russell Shaw Sales Success Seminar: Podcast #1

Linked below is the first of five podcasts from the Second Russell Shaw Sales Success Seminar. This event was held on April 17, 2007, and lasted for about three hours. That seminar, along with another held on March 13, 2007, are precursors to the forthcoming Russell Shaw Sales Success FAQ files. Russell will take questions from these podcasts, along with others you send to him by email, and answer them in a series of FAQ-like video and audio podcasts. His plan is to end up with a complete real estate sales training course in podcast form.

This podcast is available in audio and video format, each covering the same content.

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