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She’s Just Lucky…That’s Why She Has So Many Closings…

Posted: Wednesday, July 1st, 2009
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Do you believe that’s actually what someone said about me?!?!?

I couldn’t believe my ears when I heard that, I started laughing uncontrollably!

I see 3 different types of agents in the field right now…

First: those that sit around and hope something happens
Second: those that go out and make something happen, and
Third: those that wonder what just happened!

Let me explain my self, and I’m actually going to lump 1 and 3 together.  This morning I was at a closing at a “Traditional” real estate office, and since I was running a little early, I sat in the lobby and “observed” the activity.  You know those little vacuum robots that go in a straight line until they hit a wall or furniture and then they change direction until they hit something else? Well, one guy reminded me of that, except with WAY less energy!  He was just walking around the office, probably waiting on the magical phone call that was going to change his life (or at least his Tuesday morning!).  A few others were milling around, some with cell phones to their heads, and a few looked like they were actually doing something important.  It actually reminded me of the person that made the comment that I am “Lucky” who just sits around the office waiting for the phone to ring.  He once asked me how I got so much business and I quickly answered: “do you ever see me sitting in the office waiting on the phone to ring?” Which brings me to number 2:

Let me explain the “luck” involved in these 3 closings:

#1: was a short sale where every time I turned around the buyer was talking about walking away… this would be the same buyer that I actually found but then all of a sudden had a “buyers agent” who wanted 3%.  But that’s OK, the deal was what was best for the seller, so I made it happen.

#2 was a short sale with Countrywide/B of A that I’ve been working on since about January, need I say more? (there is NO luck in drawing a Cwide/BofA shortsale deal, unless you believe in BAD luck!)

#3 was a transaction where I represented the buyers, a friend from college and his new, pregnant wife.  I guess it was lucky that I negotiated for the seller to install a new roof based on the home inspection, and lucky that I could call in a favor from my roofer to get it done, and lucky that it took the seller a week to sign the NOC so we could get the permit, and lucky that I’m a notary so I could drive across town and get the release signed, and lucky that I was able to track down the buyer at the Altamonte Mall because the title company forgot to have them sign something and we couldn’t get the funding number

#4 (hey, someone as lucky as me has more than just 3 things going on!) I got a new listing in Casselberry (nice waterfront condo) from an out of town seller that I’ve been conversing with for about 4 months (lucky I was able to stay in touch until he was ready to list his mom’s condo!)

#5 Got another short sale listing under contract today… lucky my sellers were smart enough to know what documents I would need for the submission, and finally

#6 & 7: Lucky enough to be open on Thursday to set 2 more appointments to meet with sellers about listing their short sales

By the way, out of these 7, 6 were referrals from my sphere of influence, and one was someone I overheard talking about short selling their house at Sonny’s BBQ and handed a business card to.  I sure am lucky that so many people trust me enough to refer their friends to!

So which one are you?  Are you sitting around the office waiting for the phone to ring and when someone in your office has some closings you say they’re just “lucky”? Or are you out at networking groups, Chambers, real estate investment associations, and even Sonny’s BBQ, beating the bush for your next deal?

I can’t wait until the 4th of July when Tim & I will be volunteering for the Sanford Rotary at the fireworks in downtown Sanford.  I’ll be working my tail off all day in the Beer Booth (stop by and say Hi!) to help raise money for Rotary, and maybe if I’m lucky, someone will notice my REALTOR pin on my shirt and will ask me about real estate!

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2 cool resources I just found

Posted: Tuesday, June 16th, 2009
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I’ll keep this short and sweet today…

I’ve been coming across several resources that I’m going to be using in my business, so I thought I’d share some of them with you!

Today’s 2 are:

FIRST:  A link to a self-analysis of whether you have “Chinese Drywall” in your home.  It asks several yes or no questions and also has good pictures of “normal” and “problem” systems.  (this would be a good link to send out to your farm list)  CLICK HERE

SECOND: By now, I KNOW you’ve heard of loan modifications, and you’ve probably been approached about doing them as a business, the problem with that is most of these companies charge THOUSANDS of dollars in fees, AND they are very controversial (whether they’re legal or not, they probably soon won’t be!)  Obama AND the Florida Attorney General are telling consumers: “if you have to pay, walk away” and telling homeowners to do their own modifications.  Great!  Do you know anyone that’s tried to do their own?  One friend of mine was offered by their lender to take the $8,000 in delinquency and they’d make it a balloon payment due in September.  WOWZA!  That’s generous!  (if he doesn’t have the money now, what makes them think he’ll have it in a few months?).  I told him to go back to them, tell them that’s unacceptable, and ask “what’s my next option?”

Here’s a good solution where you can make a little bit of money and help your friends and clients with their modifications, totally hands off!  There’s a company that has written a “How To” guide to doing your own modification.  It sells for $199 but there’s a $20 discount for online purchasing, so it’s only $179.  If you refer a client, they’ll give you $50 of it.  That’s it!  No work, just send the ordering link to the client and it’s done!  (also, if you refer 3 clients, you’ll get the kit free, and if your clients refer other clients, you still get a little commission too!).  It costs nothing to sign up to be an affiliate, so what do you have to lose?  I’ve already signed up and started attending their training webinars (they have webinars both for reps AND training for people doing their own modifications)  CLICK HERE for the site, and the promo code is R201738 (they’re also going to be doing a live 3 hour training in Altamonte Springs in July… it’s $199 and includes the manual/kit)

Andy

p.s.  Tim’s being given an amazing award tonight by his Rotary group… he doesn’t know it yet, and it’s the highest honor his chapter gives to a member.  In other Rotary groups, people that donate a certain amount of money are given the Paul Harris Fellowship Award, but in the Sanford Lunch Rotary, the group votes and awards it to a member and pays their donation for them.  I might even wear a skirt for the occasion! (don’t tell anyone).  As you read this, we’re probably just starting “cocktail hour” and mingling.  If you want to congratulate him, his email is: Tim@TimTolbert.com

p.p.s.  Follow me on Twitter… www.Twitter.com/andytolbert … I DO know why, and I’ll be sharing it with you soon!

102% Financing with no monthly MI? 620 min score? Does your listing qualify?

Posted: Wednesday, June 10th, 2009
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I know, I know, that sounds like a headline from the crazy boom days, but it’s real and has been for a long time.  It’s been called Rural Housing and USDA financing (when I see USDA I think of a big t-bone steak!).

But don’t be fooled by it’s “rural” name… there are many beautiful subdivisions that qualify!

Eric in my husband’s mortgage office just closed a beautiful townhouse overlooking a golf course and IT went USDA financing!

Here’s the quick skinny:  620 minimum score, no monthly MI (but there is up front “guarantee fee” of 2% that can be rolled into the loan), they’ll actually finance up to 102% of APRAISED value (not purchase price) so it could actually be the purchase price plus all closing costs if the deal is structured right!

Interest rates are just a smidge higher than an FHA rate, but without that pesky MI or 3.5% down!

Imagine getting your client into a house for nothing down AND they get $8,000 back!  Whew!

Many MLS systems have a “financing available” field, so check if the property is eligible and then update your listing!

Here’s where to check:  USDA Property Eligibility Link If the property is listed as eligible, you’re good to go!

In fact, go check all of your listings right now and start marketing the eligible ones with 102% financing!  I’ve even seen it marketed on 1/2 million dollar loans! (there is no official “loan limit” but the borrower needs to be UNDER a certain income level… so it would be hard for someone to qualify in this instance)

But don’t be discouraged… the income limits are much higher than you might expect!
Talk to a knowledgeable mortgage broker right away. (In Florida you can call my husband Tim or Eric in his office at 407-831-2277)

Hope that helps!

Andy

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What’s Loan Product Got To Do With ShortSales and Loan Mods?

Posted: Wednesday, June 3rd, 2009
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Quite a bit, actually.  Loan product can refer to several things, FHA, VA, Fannie, Subprime, Adjustable Rate, Negative Am, credit line, etc.

Each loan product has specific guidelines as to what can be done for shortsales and loan modificatons.  Make this a standard question that you ask your clients when you first meet (and then confirm the info… I recently had a client tell me his loan was VA, but when I called the VA office, they said it was not).  Once you know some details, it will better guide you in the options your client has.

FIRST AND FOREMOST:  If your customer wants to keep their house, AND financially they are able to do so now (or could with a small interest rate reduction) then talk to them about a modification… yes, you will not get your 3% commission, but you will get them in the future and EVERYONE they know as a referral because you helped them out of a problem.

I say small rate reduction because it needs to be within reason.  If your seller has a $3,000/month payment, it’s not likely that the lender is going to reduce their payment to $600 (although that would be nice!).  The biggest success in modifications is where the current loan is an ARM and the lender can convert it to a fixed rate, although I am now seeing many fixed rates get reduced too (often these are just for a 5 year period).

DO NOT let your customer agree to a payment arrangement that they can’t fulfill!  One of my clients recently came in to Tim’s office and said his lender was going to lower his payment by $100 for 6 months and at the end of 6 months he would have to pay $8,000 in a single payment to make up for what he is past due!  Come on, if he was having a hard time with the monthly payments, where’s he going to come up with $8,000 in a few months?  All that type of arrangement is doing is delaying the inevitable… if your seller can’t comply with the terms, they shouldn’t agree to it to start with. (by the way, after leaving our conversation, he called his lender back, told them that was unacceptable and they are now working on a real modification for him).

Now, on to short sales… if your client cannot afford the home any longer or needs to leave the area, then short sale is their next best option (yes, better than a deed in lieu as far as future credit goes).
Knowing the loan product can help you in several ways:

1st, if it is a Fannie Mae loan, your commissions will not be cut below 6%.  Yayyy!  They MAY even approve higher, give it a try!  It’s nice to know that you’re not going to do 10 times the work for less pay.  This also allows you to prepare a HUD that you know is somewher close to reality. (to find out if it is a Fannie Mae loan, go to the Fannie Mae Loan Lookup Site)

2nd, if it is an FHA or VA loan, the loss mitigation guidelines are posted on FHA and VA’s websites… not a big secret! (actually, so are most of FannieMaes, it’s called the Seller-Servicer Guide… go on, google it!)

3rd, just KNOWING this info will make both your seller AND the other real estate agent have w-a-y more confidence in your ability and knowledge level.  One of the challenges with short sales is that EVERYONE is an expert, even those who have never closed a single one!  It actually creates animosity between agents when one is clueless about the process yet pretends to know what they’re doing.

Right now I hear a lot of agents complaining that REO’s are hard to break into because you have to have experience before you can get listings and the only way to get experience is to work for someone already doing them… I think this would be a great model for shortsales!  You have to apprentice under an experienced short sale agent for at least 5 transactions before you’re allowed to take one as a listing yourself.  What do you think?

Today I’ve just been able to scratch the surface, but don’t worry, there’s more to come!
Andy

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Does your attitude determine your success? You Bet! (Revisited)

Posted: Wednesday, May 27th, 2009
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(This week’s article is a reprint of one that I wrote back in June of 2007.  I thought it was very relevant for what’s happening in our market and why some agents are succeeding and others are failing.  Hope you don’t mind the reprint… I’m studying for my brokers state exam tomorrow at 8am!)

This week we are going to discuss how your attitude determines your success, this takes shape in many different ways, but today we’re going to cover one of the more critical ones:

Self Talk:  If a five year old child heard every day “you’re stupid, you’re worthless, you’re never going to amount to anything” do you think that would hurt their chances of being a successful adult?  Of Course!  So why do we do it to ourselves every single day?  When someone makes a mistake they say “I’m so stupid” or when their business is not going well “I’m never going to be successful, I shouldn’t have even tried”  they are setting themselves up for failure just like that 5 year old.  Can you imaging if every day that 5 year old heard “You’re so smart, you’re going to be very successful when you grow up, the world is lucky to have you”  Do you imagine that child might turn out a little differently?  Certainly!  What are you telling yourself every day?  The next time you make a mistake, say “Hmmmm, that’s interesting, what can I learn from that?  or better yet, the next time you catch yourself doing something right, celebrate it!  Say “Wow, I’m a genius!  The world is lucky to have me!” and see how your outlook changes.

Exercise:  For one week, celebrate everything that goes GREAT in your life, whether it’s a big commission check, getting a great parking spot at the mall, having a good hair day, or seeing a beautiful sunset.  Celebrate It!  At the end of the week I think you will notice a difference and will continue to celebrate the successes forever!

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Yet Another Countrywide Short Sale Fiasco… You’ll Laugh… You’ll Cry…

Posted: Thursday, May 21st, 2009
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I know, I really shouldn’t let it get to me, but this one just takes the cake!  I’m running out of room for notes for all the times I’ve called them on this one…  These are NOT all of the notes, but it will give you a rough idea… my favorites are the ones in the last 2 weeks.

Now, before you read on, please realize how I take notes… I write the info down in my log with a date, person’s name, and details of their comments, THEN I repeat back to them my notes like this: “so if I understand correctly, you said that…” and double check my notes, dates, and comments.  Enjoy!

12/2/08: submitted FULL financial package and offer to Countrywide.  (BPO’s were ordered on 12/2, 12/9, and 2/9 that I know of…)

12/30/08: Mary Fleming assigned as negotiator, could be another 30 days for answer…

3/6/09: Still no answer on short sale (yes, we’re over 90 days). Buyer walks.
     However “Angel” assures me that as soon as I have a new buyer it won’t go ALL the way to the beginning… just back to the phase one.

3/11/09: Got new offer, $20,000 HIGHER, submitted all docs for new offer. I am told that a negotiator will be assigned within 5 days.

3/24/09: 2 appraisals came back.

4/17/09: (yes, that’s over 35 days later!) assigned to Mary Fleming. (YAYYY!  She was so speedy the last time!)

Here’s where it REALLY gets fun:

5/4/09:  “Catherine” tells me that Mary Fleming is a 3rd level negotiator and we should have an answer by Friday the 8th, suggests I call EVERY day for status update, payoff demand has already been ordered, she tells me.  Yayy!, of course, I update the buyer’s agent.

5/8/09: (oops, forgot to write her name down!) no updates in computer, she’ll request an “escalation”, meaning Mary Fleming will only have 5-7 business days to respond.

5/11/09: “Anthony” tells me that Mary Fleming is reviewing the file with management.  But Mary is NOT a phase 3 negotiator, don’t know why someone would have told you that, she’s a phase 2 negotiator.  Should have an answer within 5 biz days.

5/18/09: (too mad to ask her name…) Don’t know why they would have told you that… Mary is a phase 1 negotiator, and there’s no such thing as “escalation”

Today (5/20/09):  Had to do it.  As I was sitting here typing this, I figured I’d call again, just for laughs (guess I’m a glutton for punishment).  Ready for this?  she said phase 1 should have only been 15 days!  And we absolutely should have escalated it.  She read some of the past comments in her computer and SHE said she wonders what planet they’re on!  She’s escalating it, she’s sending an email to Mary Fleming, she also gave me Mary’s direct number AND Mary’s manager’s name AND direct phone number.  Holy Camoly!

Why do we do this again? someone please remind me…

p.s.  wanna hear the kicker?  This same seller has another property, also with Countrywide, same exact floorplan, same exact subdivision.  Lost my buyer on that one around the same time as this one.  Got a new buyer the same day as this one.  Also over $20,000 higher the 2nd time.  Submitted the full file to Countrywide the exact same day.  Know What?  That one I got approval on last week.  This one? still stuck in phase 1!  Happy Day!

Gotta Go!  Have to send an email to Mary and her boss!

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WDYT about GenY @TEOTD?

Posted: Wednesday, May 13th, 2009
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Last week I was able to attend a VERY interesting presentation put on by Jeremy Conaway from Recon Intelligence at our board office.

He shared some of the major factors and differences between the Baby Boomers, the Gen-X’ers (that’s me! Yayy!) and the Gen-Y’ers.

WOW!!! I had no idea!  I often talk about how every successful business person needs to be on top of trends and market changes and go with the times, but this presentation made me stop and realize that in many ways, I’M behind the times!

It’s not about ME or what I want, it’s about the CUSTOMER and what THEY want! ( I know that, I teach it, but I realized that I was guilty of it:  I am not a “texter” but more and more of my clients are, and I actually caught myself telling a client “I don’t text, just call me or email me!” ((luckily a long-time friend as well, so he cut me some slack)) HOLY COW!  How can I be so blind?  I guess it’s time to get with the times and start TXT-ing.   (If you’ve had any problems reading any of this, go to www.NetLingo.com)

Here’s some statistics he shared with the group (yayy! Stats!)

Baby Boomers, currently aged 44-65, there are 81 million of them, and most have lost their entire nest-egg recently

Gen X, currently aged 32-44, there are 47 million of them

Gen Y, currently aged 18-32, there are 79 million of them.  Yes, 79 million.

What do we know?  A lot, they are the most researched group in recent history.  They are the most powerful group right now.  They pretty much single-handedly just elected a president.  They are also “Green”.  The X & Y are collectively called the “Net Generation” and they will basically control our market from here on out.

They want certain things from you and your company in a transaction:

Simplicity.  Have Realtors made the process complicated to justify their fees?

Innovation.  The opposite of innovation?  GEEZER!

Speed. (guess they’ve never tried to do a short sale!)

Relationships.  Self, Family/Friends, colleagues and neighbors, citizens/markets

Entertainment.  Make the process FUN and enjoyable!

Collaboration.  Old way: we’re all against each other.  New way: how can we work together and help everyone more?

Transparency.  If we have ALL the facts we can make a better decision

Integrity.  Old way: “OK, you got me this time, but I’ll get you back next time”

Scrutiny.  No secrets anymore… they have the ability to research EVERYTHING

Customization.  Old way: this is how we do it. Period.  New way: let’s see what we can do to make it fit for you better

Freedom.  1/3 of the Gen Y will remain renters because they have more Freedom.

Community Service.  Tell them what you do for your community to make it a better place.  And they want you to DO something, not write a check!

If you want to be competitive in this emerging market, it is critical that you look at these 12 items and see how you can integrate them into your business right away.

Jeremy pointed out that so many agents are just trying to stay afloat right now that they’re not paying attention to the major market shift and when the market returns to “normal” we will all be left wondering what happened to “normal” because we will never be able to go back to the “old ways” of transacting business.

Hope some of these items opened your eyes to what the new market wants and expects from us, I know I’m making some changes already (TXT!)

CUL8R

Andy
 
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Would YOU Answer This Job Posting Ad?

Posted: Wednesday, May 6th, 2009
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Professional wanted.  Must be good with numbers, excellent with people, and willing to work long hours on a straight commission basis.
 
As a bonus, you will be required to allow the State licensing bureau to pull your credit report, and if it’s not clean for the last 3 years, your license will be denied and/or revoked.  Said credit report will also be made a part of the public records of the State in order to give every identity thief in the world easy access to it.
 
Also, you will be working in an industry that now has a lower public opinion rating than used car dealers.
 
Once you have located a prospect, you will submit your deal to one of the few sources remaining and your file will go in a queue to be handled in order of receipt, often 30 days or more, by which time you will have multiple parties (usually the buyer, seller, and both of their real estate agents) yelling at you daily to hurry up.
 
In the end, the short sale on the property will be denied and/or the property will go to auction, or something will have changed in the buyer’s credit file, or the lender will have eliminated the program you were submitting the file under, all resulting in the same thing.  Nothing.  After months of working the file, it will be placed in your turn-down file and you will not receive any commission for your work.
 
So, what do you think?  Wanna be a mortgage broker? The Florida House and Senate passed a bill (SB 2226)  that is going to make this scenario an absolute reality at the end of this year.  First estimates were that 50-75% of all mortgage brokers would be out of the business because of the 3 year clean credit requirement (how many Realtors could pass that right now? Or better yet, how many politicians?) but now even the ones with GOOD credit might opt out of the business because they don’t want their credit reports made public record! 
 
The only place that will be left to get a mortgage loan will be… the big banks!  The ones that started all of this mess in the first place…got Zillions of dollars in bailout money… paid their people BIG bonuses… and now they will 100% get every bit of the mortgage market as their punishment.  When a monopoly is created, costs to the consumer go up.  Period.
 
By the way, mortgage brokers account for something like 75% of all originations.  That means they do all the work, package the file, and all the lender/bank has to do is approve it.  Without mortgage brokers, all of those other steps will have to be now handled by the lenders that are already short staffed (tried to do a short sale lately?) and not set up to handle those types of tasks.
 
Just my rant for the day!
 
p.s.  As a Realtor, you SHOULD care about the future of the mortgage industry.  Did you ever get a client referral from a mortgage broker? That would be gone!  Remember when big banks tried to get into real estate?  They’re not going to refer clients to you…they’re going to try to figure out a way to bring it in house for their own benefit!

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A Real Estate Lesson - Something Out Of The Ordinary? Report It!

Posted: Wednesday, April 29th, 2009
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I love real estate… without it I couldn’t come up with all of these crazy stories that I like to share with you! (nope…it’s all real!  I couldn’t make it up!)

Yesterday my husband Tim & I went out and previewed 16 houses for the Blue Jeans Rehab Bus Trip that starts Friday evening, and in the garage of one of the Bank Owned/REO properties, we stepped into the garage and here was a stripped our car! (that’s me giving the listing agent the VIN number so she could call the police)
This car was completely stripped out: steering column busted, radio gone, NoS system gone (nitrous oxide…makes it go really fast!) obviously the wheels, and all of the interior panels were ripped out and they even slashed the seats up!

I immediately called the listing agent and asked if she KNEW there was a car in the garage and of course, she said no.  The crazy thing is that she said the house had been shown several times and nobody else even mentioned the car!  She reported it to the police and had to meet them out there to let them in (Tim & I didn’t stick around… to much to do! although we were curious. Oh well.  But we DID tell the listing agent to tell them that we did NOT touch anything!)

I’m going to turn this into a real estate lesson, of course

If you are EVER in any house and see ANYTHING that looks out of the ordinary, report it to the listing agent IMMEDIATELY.  Don’t wait, just pick up the phone and dial it now.  We’ve seen:  Dogs tied up in the back yard of an abandoned house with no food or water (we called Animal control on those… we’ve seen it more than once), fire sprinkler heads in condos covered up with paper cups and tin-foil, evidence of “squatters” and drug use, and now, stolen cars (sorry, ALLEGED stolen cars…)

If it was your listing, you would probably want to be informed, wouldn’t you?  do the same for the listing agent on the houses you look at… we all need to help each other out!

I’m Leaking a Secret Internal Title Company Memo…

Posted: Wednesday, April 22nd, 2009
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Secret Internal Title Company Memo about Short Sales!

One of my friends at a title company forwarded this to me this week.  It’s an internal memo from their title underwriter about (more!) pitfalls of shortsales and what title companies are being warned about in short sales.  Just wanted you to know!

RE: Short Sales
Dear Associates:  
 
Approvals and/or instructions given by a lender for a “short sale” may include unacceptable instructions that make the transaction uninsurable. The following are examples of unacceptable conditions: 

°  “There are to be no transfers of property within 30 days of the closing of this transaction.  Escrow instructions must contain a clause that if such a transaction takes place then the title/escrow company must notify Lender.”  
Problem: A title company closing a short sale would not know if the property was transferred again within 30 days after the short sale. 

°  “If the property was acquired by any means of fraud, Lender reserves the right to pursue any and all actions available to it to offset its losses.  If it is determined that Seller(s) and/or Buyer(s) participated in any way to the fraud, this short sale will be void, and the Note and Security Instrument will remain in full force and effect.” 

Problem: This condition may make the short sale voidable. 

°  “Lender requires full disclosure which includes all details of the transaction on both the Seller and Buyer side of the HUD1.  If Lender finds full disclosure was not made at the time of the approval, the approval becomes null and void.” 

Problem: This condition may make the short sale voidable. 

Read short sale approvals and instructions meticulously.  Do not sign or accept instructions that contain any of the above, or similar, provisions if you are issuing a Stewart Title policy, unless the instructions are revised to remove the objectionable provisions.
If you have questions relating to this bulletin, please contact (name removed) Legal Services or your local underwriting personnel.

What’s the *#&@%$ Problem with BPO’s?

Posted: Tuesday, April 14th, 2009
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Seriously?

Sometimes I wonder if the people doing BPO’s even know how to work the MLS!!! (well, a lot of them don’t, but we’ll talk about that in a second!)

Let’s start by going over why the BPO is so critical in your short sale deal, and I don’t care whether you represent the Buyer or the Seller, this is good info to know.  The 2 agents in these deals really should work together to get these short sale deals closed because we all know it is the best option for our market, our seller, and our buyer.  Actually, maybe you don’t know that, so I’ll cover that next week!  But for now, just go with me!

The BPO is this magical figure that your ENTIRE deal is based around.  The loss mitigator calculates ALL of their formulas around the BPO value and will approve or deny your offer based on it.  Most lenders have a set percentage of the BPO value that they are allowed to take, and anything under that will have to go to a different approval process.  For example, if the BPO comes in at $100,000 and the lender is authorized to take 85% of BPO value, then as long as your NET offer is over $85,000, you will be approved!  That also means that if the person that does the BPO brings it in at $120,000, the offer would need to be at least $102,000.  See the difference that the BPO makes to a deal?

Now here’s the problem with the entire BPO system boiled down to a simple statement:

You want the BPO to come in LOW and the Lender wants it to come in HIGH!

Now do you see the problem?  The lender hires the person that does the BPO.  The person that does the BPO has a carrot dangled in front of them that if they bring it in nice and high to make the lender think they can get more money for the house than the short sale offer is for, maybe they’ll get the listing when it’s an REO!

Back in the 90’s when I was a brand new licensee and new NOTHING, my broker came to me and said “do you want to do this BPO for me?  You just pull some comps, drive over and take a picture, and they’ll pay you $75 and bring it in nice and high and sometimes you’ll get the listing after it forecloses!” …….   Woo-Hooo!  $75 bucks!  I’m IN!   (see the problem?)

Let’s go over some of the challenges with the current BPO system:

BPO stands for BROKER PRICE OPINION, so maybe it should be done by a broker?!?! Or under the direct supervision of a broker, by a licensed agent, and signed off by the broker, kind of like how appraisers do it when they need a second signature.  Last year I met an “agent” at one of my listings for a BPO and found out that the agent didn’t even come out himself…he sent an out-of-work roofer to the property to take pictures and inspect the property!  There are several problems with this: first, I’m sure the lender didn’t know that it was an unlicensed person doing their work for them, second, if I hadn’t met him there, he probably was using the agents MLS key (which probably violates some rule somewhere!), and third (in this particular case) the home was a nice 2-story block home in a neighborhood of small frame homes and mobile homes.  Now any AGENT knows that this affects the value, but an out-of-work roofer who just comes in, takes pictures, and leaves, doesn’t understand this (and since the pictures look ok, the agent doing the BPO report would bring the value in too high).  Luckily, I always attend my BPO’s so I can counteract things like this and I gave him a 5 minute lecture about how the value is lower because of the neighborhood and I made him drive through the neighborhood as he left to see it in all of its glory!

They don’t pay $75 any more!  They expect the agent to do all of this work, drive to the property, take all of the photos, spend hours doing the back research to come up with a valid value?  Yeah, Right!  To survive on $40-50 per report, you have to do a TON of them, which means you do them as quick as you can and you’re not as diligent on coming up with a real value.  There’s a reason appraisers charge $300+ for an appraisal…they’re a lot of work!

If it’s a Fannie Mae loan, they’re not supposed to use BPO’s anyway!  The Fannie Mae Seller Servicer Guide states that they’re supposed to have an APPRAISAL done!

BPO Agents seem to live on another planet when it comes to values!  I’m fighting with one right now that’s come in at a $280,000 BPO when I’ve had 3 of the exact same floorplan in the same subdivision that I’ve had listed for over 6 months WELL below the $280 mark (last listing price was $239,900, and of course most properties are under contract less than list price!)  Here’s the first thought that comes to Bad Andy’s mind:  IF IT WAS WORTH 280, I WOULD HAVE SOLD IT FOR 280, AND IF YOU THAT AGENT THINKS IT IS WORTH 280 THEN I WILL GLADLY GIVE THEM THE LISTING…LET’S SEE HOW THEY DO WITH IT!

So Please, Please, Please, if you are doing BPO’s, please, realize that you hold the entire deal in your hands.  If it’s been listed for a certain price for several months, it’s probably NOT worth more than that!
Next week I’ll tell you why short sales are better for our seller, our buyer, us, and the market as a whole!

Comment on this article below or at My ActiveRain Blog

Short Sales May Still Owe Income Taxes!

Posted: Thursday, April 9th, 2009
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This is a topic that I hear over and over every time I’m meeting with agents and investors, and it is a big misconception that the tax law changed and ALL short sales don’t have to pay taxes. That is absolutely NOT true! I have reprinted this article (with a little more in-depth explanation for you, so even if you already read it, please take a minute to read it again) and I will probably re-print it every quarter until we’re out of this mess! Please feel free to forward it to the other agents in your office, title companies, mortgage companies, everyone that you feel might benefit!  (This is also part of what will be covered at the seminar next week)

On December 20th, 2007, then President Bush signed into law a measure that will change the tax effects for a homeowner in foreclosure. These are critical changes that may change your client’s outlook on a deal.

In a nutshell: If a homeowner who was in foreclosure worked out a short sale agreement with their lender, the amount of debt that the lender “wrote off” is considered as ordinary income to the seller. That means if you negotiated a $50,000 reduction in the payoff to help get the property sold, that seller would have to claim that $50,000 as taxable income on their tax returns (resulting in a potential tax bill between $7,500 and $17,500).

Some sellers decided NOT to sell on a short sale for this very reason…but that’s where this new law comes in!

It makes that “income” from written off debt NOT TAXABLE to the seller under certain circumstances! Here’s some key points:

- Only applies to their principal residence, not 2nd home/vacation/rentals/speculation. So many of our clients that are in an upside-down situation on non-owner occupied properties may still owe income tax.

- Effective for debts discharged between Jan 1, 2007 and Dec. 31, 2012 (was just extended, it was 2009)

- It applies to debt for acquisition, construction, or substantial improvement to the property. This means that if someone had refinanced and taken cash out or paid debts off, then the forgiven debt WILL be taxable. Think about it…they DID get cash out of the property that they never paid taxes on…..now they will have to.

- Forgiveness is limited to $2,000,000 (I think we’re OK there!)

- The amount of forgiven debt will be reduced from the sellers basis in the house. Most sellers will still be able to sell with no capital gains bill as long as they’ve lived in the house for at least 2 years, but people in their homes less than 2 years may still have a surprise! And for investment properties, they will either pay long or short term capital gains based on how long they held the investment.

Please remember, I am NOT an accountant, and I am not giving you or your clients legal or accounting advice, and neither should you! Anytime you have a client that asks you about the tax ramifications of ANY deal, refer them back to their CPA or attorney for advice.
To read more on the IRS website, Click Here

My Rambling Business Notes from Sidney Biddle Barrows, the “Mayflower Madam”

Posted: Wednesday, April 1st, 2009
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Last week I had the opportunity to hear Ms. Barrows speak on sales and business success.  Like I said in my last email, one summer when I was 12 or 13, her book was one of the only books I could find in English while overseas, so I read it.  Maybe that’s what gave me the entrepreneurial spark at such a young age!  But, back to my notes…she squeezed a 90 minute presentation into about 45 minutes, so she was talking very fast and I was writing to keep up, so I hope these notes make sense to you!  (I’ve condensed, edited, and cleaned them up a little!)

You must build “the customer experience.”  Since most companies don’t provide ANY, so if you do ANYTHING, you’re better!

What is your USP (unique selling proposition)? Why should they do business with you instead of your competition?
How do YOU KNOW what’s the best experience for YOUR customer?

When she first started getting asked to do consulting work for businesses, she had NO CLUE, so she ASKED them: what are your challenges? what do you need help on?  (she had Fresh Eyes on their business, I have often consulted with agents on why their listings aren’t selling based on this same concept!)

Have a “Blueprint” for you biz/customer experience (advertising, decor, staff, etc.) then everyone can follow it just like a builder uses blueprints.

1. What biz are you in? example: NOT dentistry, Yes: attract a mate, get a job, feel younger, etc.  (often others can see this better than you)

2. ask WHY are my customers buying?  the emotional reasons - be in the business THEY want you to be in.  if you don’t know what they’re coming to you for, you can’t build an experience around it!

3. develop you “story” or plot (you are now in the “mental movie” business

4. start developing your “script”? everything they hear about you, see in advertising, experience in the office, etc… What movie are they seeing NOW?

5. compare and contrast: what movie the client wants vs. what you have playing now

6. compare and contrast: what movie you have now vs. what you want to be playing

     A. opening credits:  advertising - catchy name, does your ad attract what you want? ask for the next step, informative enough?

     B. 1st point of contact: voicemail hell vs. live answer (think about when YOU call a biz, do you like automated?)  does your website load fast? to the hotlinks work? answer emails promptly.  Face to face: greet at office, have an intake procedure (think of a doctors office).  do you make it easy to do biz with you?  have a good sales presentation (sell the BENEFITS, not the features!) (give an outline/highlight script to your phone people)

     C. visual impression: EVERYTHING they see: ad, bags, employees, displays, packaging, etc. must all support the movie you’re playing (example: upscale, discount, “green”, family friendly)

     D. (i missed this point somewhere in my notes…it was probably the billion $ secret!)

     E.  choreography - psychological OR physical - influence (manipulate) the client’s perception of your biz.  ex: do you want to be on the mailing list? NO!  do you want to be on the VIP list?

     F.  repeat biz & referrals: example: after plastic surgery-send bouquet of flowers show appreciation.

find out from your customers what they don’t like about your industry?  then form your story around it
I asked specifically what people in the mortgage and real estate industry could do… she said that since there’s so many horror stories (mostly unfounded!) but it’s absolutely critical to MAKE CLIENTS FEEL SAFE WORKING WITH YOU!

Hope that you like some of the ideas… ignore the industry she was in (unless you’re looking for a new career!) and look at how you can apply these ideas for YOUR business!

Personal History With The Mayflower Madam? (No, It’s NOT That!)

Posted: Friday, March 27th, 2009
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Wednesday I’m going to a luncheon at the Heathrow Country Club in Lake Mary to hear Sydney Biddle Barrows, better known as the “Mayflower Madam”, share some of her strategies about sales and marketing.

Now, before you go off the deep end, think about not what industry she was in (escort service) but rather the amazing business she was able to build with absolutely ZERO advertising! (she couldn’t exactly take out a TV ad now could she?) Many real estate professionals are working on VERY limited budgets right now, so I’ve decided that I’ll take good notes and share a few of her highlights with you in the next email.

Want to hear my personal history with the Mayflower Madam? (no, it’s NOT that!) When I was a kid, my sister and I would spend summers in Switzerland with a family friend. They lived in a little farming community that had: 1 bar/restaurant, 1 bakery, a post office, and 1 little general store (like a 7-11) That’s it! I worked in the bar serving beer & wine and got to keep my tips!

Anyway, when I was young I was a voracious reader, and I quickly went through all of the books I had brought with me. We went in to town one day and I found 2 used books in English (just 2, that’s it!) One was the Mayflower Madam’s biography and the other was David Niven’s biography (he was a famous actor back in his day, and I’ll tell you, he was NOT saint!) So those were the two books I read that summer, I was probably 11 or 12 at the time. No wonder I’m not “normal” these days, eh?

I don’t have that old ratty used paperback anymore… but if I get a chance I’ll tell Sydney my story!

What Advice Would You Give…

Posted: Tuesday, March 17th, 2009
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I’ve been asked to speak at a conference next week for about 100 college juniors and seniors that hold leadership roles in their sorority.  They’ve asked me to speak about what they can do to succeed in today’s tough job market besides just getting their degree.
 
I’ve really been thinking about this a lot.  What a big difference I might be able to make in these young ladies’ futures!  It’s an awesome responsibility that I’ve agreed to bear. 
 
I think I’ve come up with a few things to focus on…see if you agree with me and please, forward me any other ideas you have.
 
When I first graduated college (we won’t mention the year!) we were in the middle of bad economic times as well.  Florida’s unemployment rate hit 8.2% and over half of the employers didn’t show up to the campus job fair.  I know what it’s like.  I know it’s been many years since I’ve been “in the job market”, however, I think after all of these years in the real world, I know a little bit about what it takes to be successful.
 
You’ve got to set yourself apart from the rest of the thousands of college graduates that are looking for a job.  I personally would rather hire a B or C student that was very active in extracurricular activities than a straight A bookworm that has no knowledge outside of the classroom.  Here’s some things that I personally would like to see on a resume:

~If you worked while a student, was it in your desired field and what skills and responsibilities did you take on? (as opposed to flipping burgers, or if you flipped burgers, how did you do your job better than anyone else and what extra duties did you do?)

~What clubs and associations were you active in and what leadership roles did you hold?  Everyone always thinks that President is the best position to hold, but when you’re looking for a job, that just tells me you were popular and had a lot of friends, it doesn’t tell me how capable you are.  I’d rather hire the vice president that usually does all of the work, the treasurer that watches the budgets, the membership chair that’s a great recruiter, or the secretary responsible for keeping it all straight.  (Although if I’m hiring a sales person, I’m probably going to look at the president, they sure can talk their way into things!)

~Did you make the most of your elective credit choices?  I’ve always thought that the “underwater basket weaving” type classes are a complete waste of your time and money, but if you are well rounded by picking up things like public speaking, a foreign language, or even a sport (I took Volleyball I & II) you will make a more balanced employee.

~What specific skills did you need or gain in the positions you held?  And how will those help my company?  For example, I didn’t know how great it would be on my resume at the time, but my senior year I was editor of the Panhellenic Recruitment Magazine.  The entire magazine was a giant sales pitch for joining the Greek system, and I was responsible for: recruiting and selecting my “staff”, coordinating photo shoots, selling advertisements to help with the budget, negotiating with printers, and working with the design staff on the layout.  How’s that for “real-world” training?

~What were you active in OFF campus?  Church, Charities, Chamber of Commerce? (wow, that’s a bunch of C’s!)  That shows that little bit of extra “drive” that I want from my employees.
The next thing I’m going to suggest is that you do whatever it takes to get your foot in the door.  And once it’s in there, make yourself invaluable to the company.  I first took a part-time job at a store at the mall and showed them what I could do and then quickly moved up.  No, it was not my dream job by far, but hey, I had to pay the bills!
 
How can you make yourself invaluable once you’re in there?  Well, keep this in mind:  If money’s tight and I need to lay someone off, will it be the person that COSTS me money or MAKES me money?  Exactly!  So do whatever you can to MAKE your company more money.  That means help bring in new clients, even if that’s not your job description!  Any employee at any level in any company can always do a part in increasing revenue, whether it’s “selling” your product at every opportunity with your friends or researching some potential new clients for your boss.  The other way to help put a dollar figure on your value to the company is to keep your eyes out on a way to cut costs for the company.  One place I worked had an employee make a small suggested change and she saved the company over $250,000 per year on overnight mail.  She has made herself valuable to the company.
 
Another way to make yourself invaluable is to learn all of the systems and be able to perform multiple jobs within the company, it’s called Cross-Training.  If you are able to cover different positions and run different programs, you will be less likely to be laid off.
 
The third thing I want to suggest is that you learn whatever you can about selling skills and communication skills.  These are probably the two most critical things that you can do in ANY field you want to go into.  As you become a better communicator you will quickly see how it will get you where you want to be, not only in your career, but in your personal life as well.  (by the way, one of my favorite books on this subject is “Instant Rapport” by Michael Brooks.  It’s about $10 at the bookstore and at Amazon.com)
 
I know many of you will argue that you’re not going into “sales” so you don’t need selling skills, but you will quickly discover that EVERYTHING in life is sales… dating and interviewing you are selling yourself, want to take the lead on a new project at work? Better sell your boss on the fact that you can handle the responsibility!  Want your husband or kids to do the dishes?  Yep, that’s selling too… see what I’m getting at?  Even if you’re not IN sales, you’re IN sales.
 
And of course, I’m going to talk about the joys of entrepreneurship (can’t help it, that’s who I am!)
 
I would like to give the ladies a handout with some of my key points, and I want to share some of your golden tips with them as well.  Please send me a 1 or 2 sentence piece of advice that you would give to someone graduating in the next year and going out in the real world.  I will put all of our golden tidbits on a handout for them to keep as inspiration.  See the p.p.s. below for the link to my AR blog page, leave your comments there, and then I will give the ladies the link to go read them there!
 
Thanks for reading today, it’s kind of a long one, but I’m really excited about it!
       
p.s.  If you read all the way down to here, I hope you noticed quite a few things that you can implement in YOUR career too!

p.p.s.  To leave a comment on this post, go to my ActiveRain page.
 

More Market Updates…some good, some not so good!

Posted: Wednesday, March 4th, 2009
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I’m sure by now you’ve realized that the market changes on a daily basis.  Since my husband is in the mortgage industry, I get to hear about many of these things before the “general” real estate public, so I want to share with you when I hear things that might change the way you do business…here’s a two that have happened over the last few weeks.

1.  FHA has announced revised loan limits for the remainder of 2009 (this is probably GOOD news for most of you!).  These loan limits apply to people who are credit approved during ‘09.  That means that it could potentially close in early ‘10, but the process would have to be started in ‘09.  You can go to www.Hud.gov and find the information.

2.  Got Condos?  Sorry!  If you’ve been in the business for a while, you remember the days when you couldn’t GIVE a condo away…well, they’re back!  Many parts of Florida are bombarded with vacant condos on the market and here’s the kicker…even if you find a buyer for it, they probably won’t be able to get a loan!  Many lenders have now just announced a blanket policy of “We don’t lend on condos.  Period.”  So even if you have a condo that DOES meet FHA/VA or Fannie approval guidelines for the community, good luck finding a lender!

Tip: for starters, think long and hard before taking a listing of a condo…if you can’t get it sold, the seller will be mad at YOU.  One thing you can do is look in public records to see what’s sold in the last few months in your association and see what lender financed them and then see if they’re still financing currently.  The only other option is to talk to your seller about owner financing or lease/optioning the property.

Stay tuned for more updates!

Andy
p.s.  To leave a comment on this post, go to my ActiveRain page.
 

5 Crazy Things That May Be Making Your House “Un-Buyable”

Posted: Wednesday, February 25th, 2009
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In my recent adventures working with several buyers looking for homes, I have seen a few things that have been a little offensive, disturbing (to both me and my buyers) and even a little scary!

Whether you are a listing agent or a seller, there are several little things you can do to make your house look better than the thousands of others that are undoubtedly for sale in your city.

#1  Excorcise the “Pet Cemetary” in the back yard.  Yep, seriously.  I showed a foreclosure the other day and in the back yard is a little wooden cross with a name on it.  My buyer did not feel comfortable with that AT ALL.  She liked the house enough that she has gone to contract on it anyway, but she still asks what she’s supposed to do about the “grave.”  I hope you realize that some people would have seen that, and based on their personal beliefs, not purchased that home.  Period.  Tip:  Talk to the seller about removing.  (I just thought of something!  I hope is was a pet, and not the ex-husband!)

#2  Your home should be inviting and friendly, but NOT “420 Friendly”  Last year someone responded to one of my Craigslist postings for a rental and asked if we were “420 Friendly” and since I didn’t know what that meant, I Googled it.  It means is ok with Marijuana Smokers in the house.  Last week I went to meet with a potential listing, and in one of the teenager’s rooms painted in black high gloss paint were the numbers 420 on the wall.  I don’t know if the father knows what that means or not, but I told him it needs to go (as well as all of the pictures of girls in g-strings hanging on the wall.

#3  Don’t make us feel uncomfortable if you’ll be home during a showing.  A few weeks ago we had an appointment to see a house and I had been told that the parent and child were home sick (but it was ok to show).  When I knocked on the door, nobody answered, so I thought they had gone out to leave the home empty for us.  When I came in I even called out “Hello!  Anybody Home?” and there was no answer.  We walked all around the downstairs and the back yard and then when we went upstairs, we heard someone moving around in one of the bedrooms that had the door closed and the hall bath had the door closed and the light and fan were obviously on.  We felt very uncomfortable and left quickly.  Tip:  If your seller will be home at a showing, coach them on how to act:  Answer the door politely and just tell the agent/buyer that you will be in the back yard/living room/whereever if they have any questions.

#4  Go Gators!!!! But not when selling your home.  Take down things like collegiate and pro team paraphernalia (what if your buyer is for the “Other” team?  we don’t want ANYTHING to turn them off of your home), Political references (same reason), and “stuffed animals” like deer heads on the wall and mounted fish (some people are highly offended by these items, not me, but I’m not willing to risk a sale over it!).  Tip:  When I list a property, I walk through the house and point out everything that I would like to see packed away.  I explain to the seller my reasoning behind it, and they are usually just fine with the idea once explained.

One listing I previewed for my clients via photos in the MLS has a bonus room (converted garage) that the photo had every inch of the walls with beer signs and other posters and a pool table in the middle of the room.  Hanging over the pool table was:  a taxidermy shark with a skull in it’s mouth and a rebel flag on the ceiling.  I don’t know of anybody that would look at that picture and say “Honey, let’s go look at that one…it really looks nice!”

#5  What’s that smell?  2 weeks ago we had an appointment to show a property and the sellers were leaving the home before we got there.  When I walked in I was slapped in the face with the strongest perfume smell in the world.  Not air-freshener, PERFUME!  I think the seller had walked around the house and sprayed perfume right before they left.  Great!  I know you want your home to smell good, but remember, many people are allergic or sensitive to perfumes!  They can’t look at your house if their eyes are watering and they have to leave the house to sneeze!  Tip:  Coach your sellers.  Vanilla seems to be a fragrance that smells good and most people are not affected by.  My favorite is the plug-ins or the oil-plug ins in the vanilla fragrance.

Hopefully you read these 5 tips and say “Duhhhh” but obviously there are at least 5 realtors out there that need to read this (and maybe you have someone you’d like to forward it to!)
 

Dan Kennedy’s “Phenomenon”

Posted: Sunday, February 22nd, 2009
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How to accomplish more in the next 12 months than you have in the last 12 years…

Pretty strong title, eh?  If you don’t know who Dan Kennedy is, than I strongly suggest you go look him up.  He’s an absolute marketing genius, and he’s written several books and authors a great monthly newsletter with tips and techniques to help grow your business.

Following are some highlights from a recent visit Dan made to Central Florida.

“Everyone gets good & bad bounces…if you’re playing the whole game waiting on the good bounce, you’re not really playing the game very well, are you?” (sounds a lot like our industry, doesn’t it?  for many years we only had “good bounces” and even an idiot could make money, but now that the market has thrown us some “bad bounces” we’re seeing only the good players able to succeed in the current real estate game)

Module 1:  Foundations.  You must model what others are successfully doing.  You must move fast, and don’t wait!  Even if your store burns down, you can still market for when it reopens!  And your resourcefulness is more important that your resources (when someone says no, don’t take no for an answer, ask how CAN you get it done?)

Module 2: Triggers.  You must have a sound means of making money and be ready to change if what you’re doing is not working.  Make sure you are “making deposits” in both your present bank and your future bank (this means to plan and invest in the/your future through education and building your skills and business AND work on today’s income needs).  You should always have multiple streams of income…max of 20-25% should come from any one stream.  How you behave is most important…go implement now.  START NOW!

Module 3:  Marketing.  Marketing is the root of everything you do.  Do it fast and do it well.  Expansion (fast) vs. Growth (slow).  Systems vs. Random Acts (which do you have?).  And: Direct Response Marketing is the ultimate competitive advantage to the user.

Module 4: Liberation.  Break free from the work/money link.  Stop trading hours for dollars and figure out how to leverage your time.  Outsource what can be outsourced.  Labor vs. Leverage.  Break free from the price/product link.  Price is governed by WHO is buying and selling and how it is sold, NOT just what is sold.  Give people a “deluxe” or upgraded option, they will take it 20% of the time.

I know these notes may not make total sense to you (although if you’ve been reading my emails for any length of time, it probably looks a little familiar!)  Go back and read it again, very slowly, and see if it sinks in the second time.

To sum up, ask yourself 3 questions:

1)  Where are you at now?
2)  Where do you want to get to?
3)  What’s it worth to you?

If you can find out these 3 answers from your clients… you can sell to them every time!

Happy Marketing!
 

WE HAD THE BEST DAY OF FISHING TIM HAS EVER SEEN OVER THERE!

Posted: Sunday, February 15th, 2009
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This past Sunday, my husband Tim had a guided Redfishing charter all set up to go with his buddy, David, over in Mosquito Lagoon in Volusia County.

On Friday, David started hinting that he may back out. Saturday at about 8pm he backed out, with some lame excuses like:

- I talked to some other people and they said the fishing hasn’t been good
- It’s too cold
- The water’s too shallow
- We won’t catch anything
- Yada, Yada, Yada….

Tim called a few friends, but they all already had plans. We didn’t want to back out of a commitment that Tim h
We got on a school of 300 fish and they would bite at anything you threw in front of them! Captain Joe Porcelli even put a piece of grapefruit peel on his hook and caught  a fish on the 2nd cast! It was crazy! We had caught our limit of Red Fish within the first hour (and I caught a big Trout too!) and then just kept having fun.

There were a few other boats around us that weren’t catching ANYTHING! One was  a metal-hulled boat that anchored the wrong way and the waves kept beating against their bow making a deep bass-drum sound every time that was probably scaring the fish away!

We even came up with a new slogan for Captain Joe… “We Make Your Lies Come True!” (since everyone always lies about how big the fish was or the one that got away…with him you don’t have to lie!)

So as I sit here with my face burning (yes, you can get a sunburn in February.), I was thinking about how much this experience has been like the real estate market lately:

-David had “heard” that it was bad, so he decided not to go. Just like if you’re hanging around with negative people talking bad about the real estate market, you may decide that the market is bad.

-The other boats around us must have been doing something wrong…they were sitting right on the same 300+ school, but not hooking up! Was it the wrong bait? The wrong tools? Maybe they weren’t using the right reeling techniques. Sound like the real estate market? Agents everywhere are whining about how business is down, no buyers, can’t get anything closed, Whaaaa-Whaaaa-Whaaaa!

They’re sitting on top of a HUGE school of buyers and sellers, including REO’s, short sales, investors, and a bunch of 1st time home buyers. Maybe they’re even scaring away clients with their attitudes!

Why is it that some agents (myself included) are already having their best year ever and others are wondering when they’ll ever see a commission check again! If you’re not closing what you want to be closing then you’re either using the wrong bait, the wrong technique, you’re in the wrong spot, you’re on the wrong kind of boat, or you’ve got the wrong Guide!

David missed probably the best day of fishing he ever would have had in his life because he “heard” it was bad. Don’t let that same thing happen in your business…

Andy

p.s. Once you pull that first fish in, it’s like a rush…you want more! Just like the feeling of your first commission check you ever got… if it’s been a while since you’ve had a closing, put your bait back in the water and see what it’s like!

p.p.s. If you want to reach Captain Joe and catch some reds for yourself, you can get his info here (and see some pictures!)

http://www.cyberangler.com/fishing-reports/florida/mosquito-lagoon/long-14500.htm

Top 7 Million Dollar Ideas to Turn Your Blog into an ATM Machine!

Posted: Wednesday, January 21st, 2009
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If you’re not already writing a blog, it may be time to consider it… if you already are, you may be running out of topics right about now, so here’s some tips to kick around.  Remember, you are aiming your blog at CONSUMERS, so think about what a consumer considering buying or selling a home in your farm area would be interested in.

1.  Write compelling headlines, or they’ll never read any further.  Did my headline for this article get your attention?  I hope so!  Think of how you read the newspaper (if you do!) or how you scan your email subject lines.  If the headline doesn’t get your attention, you don’t have time to read it.  You’ve got to capture them QUICKLY!  Here’s an example:

New Farmer’s Market Opens in “Your City” 
            vs.
Where I found the freshest, cheapest, best selection of produce I’ve ever seen, right here in  “Your City”

Which one makes you want to read the rest of the story?  Try a catchy headline on your next Blog!

2.  Show some personality!  It takes a very special type of person to be in our industry.  We have to be outgoing, love people (for the most part!), and in today’s market, have a great sense of humor!  Remember the old saying, “People do business with people they like”?  To create a relationship through a blog, you’ll need to share some of your personality and your personal life (but not too much!)  Look at how I squeeze in little bits about my doggies, my husband, and even the Gators!  Your readers will like the fact that you have humorous things happen in your everyday life too!

3.  Try to mix your blog up with a little bit of real estate stuff and a little bit of community stuff.  If you write a lot about your community and events, your readers will not understand if you know REAL ESTATE or not.  If you write about ALL real estate stuff, people will never get to see your personality.

4.  Talk about charities, special events, and happenings, but talk about them from EXPERIENCE!  Volunteer to work on the events and invite your readers down to meet you in person at the “such & such” booth on Saturday afternoon.  You will be promoting a worthwhile cause AND inviting them to meet you in person (and solidify your relationship!)  Clue:  I’ve mentioned such things as the Sanford 4th of July festivities…come see me at the Budweiser Booth by the main concert stage!

5.  Network while you research for your blog.  When you go to a new restaurant,  don’t just sit, eat, and leave.  Introduce  yourself to the proprietor and explain that you’re a local real estate specialist and you often review local businesses for your community blog.   You are NOT fishing for free food!  I want you to get to know the manager and your wait staff (remember, they could be potential clients!).  Then when you write your blog about it, it will be way more interesting, like: 

     “When Tim & I recently ate at the new L’ Frenchie Restaurant, we had the opportunity to chat with the owner, Pierre, who grew up in the Champagne Valley of France.  In fact, his first job was dusting off bottles in the “Caves” of Mumm’s Champagne!  When we asked him where he got his inspiration for the menu, he said that they are all old family recipes that have been passed down through the generations and now he wants to share them with “your city”
Now doesn’t that sound like an interesting place to go eat?  By the way, when you write your blog, be sure to forward a link to Pierre to read!  In fact, bring him a printed copy!  Maybe he’ll hang it on the wall as his first “review” (and when he needs real estate help, who do you think he’s going to think of first!)

6.  Write a few blog posts and keep them “in the can” for a rainy day.  No matter how prolific of a writer you are, you will have a time where you are too busy, too tired, or sometimes just forget!  Notice I tell people I send my newletter “somewhere around Tuesday of every week” and 95% of the time I’m on it…  if you have a few generic (meaning not time sensitive) blog posts then you can keep them and post on short notice if you don’t have anything to write. (And no, today’s was not “in the can”  I’m sitting here at 9:47 pm writing and watching Tim play Wii Tennis!)

7.  Anytime you are going to use numbers in your headline, like the “Top 7 Million $ Ideas to Turn Your Blog into an ATM Machine” it is best to use odd numbers (3,5,7,9, etc.)  Don’t ask me why, but marketers have done studies and odd numbers catch your attention the best!  Exception to the rule:  Top 10 lists are always good!

8.  Give more than you promised, such as item number #8 and #9 on this list!
9.  Have a CTA (Call to Action).  Unless you are INSANE, you are not doing all of this writing for the fun of it!  You want to get some business too!  End each blog post with a CTA such as:  Call me today to find out what your house is worth! and ALWAYS have your contact info in EVERY blog.

Thanks for reading today!

Andy

P.S.  To thank Andy monetarily for her awesome and motivational writings each week, just shove a bunch of money in an envelope and send it to her at PO Box 952674, Lake Mary FL 32795.  (there’s my CTA.  Hey, It works for those “put all your gold jewelry in an envelope and mail it to us and we’ll send you a check” people!  I figured I’d give it a shot!)

Should You Have An Alter-Ego?

Posted: Thursday, January 15th, 2009
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Tim and I got a Wii for ourselves right after the holidays.  We also got a Wii Fit.  It is a whole ton of fun and you actually do get a pretty good workout on the Fit (and you find out exactly how un-coordinated you are!).
 
If you’ve never played Wii, here’s the overview:  It is a video game system that actually interacts with your body movements.  So to play tennis, you need to swing the controller just like you would swing a racquet.  Doesn’t that sound like fun?  Anyway, when you first set it up, you build a “Mii” which is an avatar of yourself.  So I set up “Andy” who is dark blonde with big blue eyes and a big smile.  Sound familiar? (by the way, you can name them anything you want, and even pick their favorite color.  Andy’s is purple, so she’s usually in a purple shirt).  Now Andy tries to play sports, and she loves playing, but she’s not all that good, in fact, Tim-Mii knocked her out in boxing!  Well, after a few days of getting beaten in every sport (even Hula-Hoop!!!) I decided it was time to take massive action.
 
Introducing…Bad Andy.  Bad Andy is my new Mii.  She kicks butt.  She has black hair, big pointy glasses (like from back in the 50’s like a cats-eye), wears black all the time (to intimidate her opponent), and she is GREAT at every sport.  In fact, last night Bad Andy challenged Tim-Mii to a game of NCAA College Football.  She even let Tim-Mii be the Gators!  And guess what, She Won!  Not only did she win, but she Skunked Him (that means he got Zero points!). 
 
Now why is it that just by changing my Mii to a kick-butt, no excuses, take-no-prisoners attitude avatar, I can also play the sports better?
 
Hmmmmmmm.
 
What if we took that same experience and flipped it over to our careers?
 
What if every day we woke up and said “I’m Best Realtor ___ ” and faced the day with that attitude.  When I’m playing Wii, I continually psych myself up by taunting Tim-Mii with things like “Look out, Bad-Andy’s gonna shut you down”  and “Bad-Andy’s the best skier, you don’t stand a chance!” 
 
How ’bout “Look out short-sale lender, you’re dealing with Best Realtor/Negotiator Matt , so you might as well just sign off on my deal right now!” or maybe “You might as well just list it with me, I’m going to sell it anyway!” 
 
Who do you think would be more likely to get the listing…Best Realtor Andy who thinks she’s going to get it, or…
 
Meek/Broke/Desperate Realtor Bob who goes in thinking “They’re going to hate me.  They’re going to know that I’ve never listed a property before…if I don’t get this listing I’m going to have to get a J-O-B… man, maybe I should just cancel the appointment.”
 
Many people dream about being someone else.  There’s an entire web-world called “Second Life” where people set up avatars of who they wish they were but either physically can’t or are afraid to be in real life.  The internet has made it possible to be whoever you want to be.  In fact, there’s a cute country song out right now by Brad Paisley called “Online” that goes like this:
 
I work down at the Pizza Pit And I drive an old Hyundai
I still live with my mom and dad, I’m 5 foot 3 and overweight
I’m a scifi fanatic, A mild asthmatic…
But there’s whole ‘nother me That you need to see, Go checkout MySpace
‘Cause online I’m out in Hollywood, I’m 6 foot 5 and I look darn good
I drive a Maserati I’m a black-belt in karate
And I love a good glass of wine…
I’m so much cooler online.
 
(yes Ethan, I’m quoting country songs again!)
 
Tomorrow, you can make the decision who you will be.  Will you be Meek/Broke/Desperate Realtor Bob?  Or will you be Best Ever ___ in the history of the world?
 
I hope you choose well!

Cruddy and Useless: Mortgage Pre-Qual Letters and How to Spot Them!

Posted: Wednesday, January 7th, 2009
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There has always been a lot of incompetence in the mortgage business, but when the money was flowing it really didn’t matter because if you had a heartbeat you could get financed, so inexperienced mortgage brokers could still be successful.  But now that money has tightened up, you can’t risk your deals on a mortgage broker or an approval that is bogus.

This deal was kind of funny.  When the buyer’s agent submitted the offer, they included a very weak pre-qualification letter.  When I called the loan officer who’s name and number was at the bottom to ask for some clarification, they had disappeared!  POOF!  Gone. (Imagine that!)
I told the buyer’s agent and she said “Oh My!”  So today I get a different preapproval letter from a different company and broker.  This is what prompted our lesson for today.  So first, go take a look at the letter HERE.  (it is in .pdf format and you can print it or just look on the screen.  I have blacked out the client’s and company name and cut off their logo header and their signature at the bottom.  Nothing else has been changed)

Got it? Ok, here we go:

Right in the first paragraph is says:  1) he has been pre-approved then 2) this loan pre-qualification and 3) This is not a loan approval.  So which is it? Is he approved or not?  Then it goes on to say that “Loan approval is subject to completion of a mortgage application…   WHAT!?!?! I read that to say he hasn’t even made loan application yet!  I’m sure that’s not the case, but I’ve got to give this letter to the lender I’m trying to negotiate the short sale with…and that’s how THEY’RE going to interpret it!
Let me suggest what you SHOULD be seeing in a pre-approval letter.  I look for things like:

“Mr. Smith has made loan application with our company and we have received a preliminary approval from automated underwriting.  This approval is subject to verifications and full underwriter approval and is subject to change”  or something loosely resembling that.  It will also usually list things like: satisfactory appraisal, title, seller contribution of X%, etc.

Here’s the real scoop:  A good loan officer can take a full 1003 loan application (pronounced “ten-oh-three”) in 5-10 minutes.  It then takes all of about 5-10 minutes OR LESS to run it through automated underwriting system.  So from first contact, a good loan officer can have a REAL approval letter to you in 10-20 minutes.  There.  Now you know the truth.  This includes FHA and VA loans.
The other thing that I didn’t like in this letter was the 4th bullet point: “LTV 97% financing and buyer will need 3% in down payment assistance from seller”.  Two things jump out at me. 

1.  As of 1/1/09, FHA loans are now 3.5% down, so the LTV would be 96.5%, UNLESS the case number was assigned prior to 12/31/08, which if it was already assigned, I would probably have received an APPROVAL not a pre-qual.

2.  There has been no such thing as “down payment assistance from the seller” since October first of last year when programs such as Nehemiah and Ameridream were squashed by FHA guideline changes.  Did they really mean to say 3% closing cost assistance?  Don’t know, but again, I have to provide this letter to my negotiator, so it must be very clear that the buyers are qualified or my short sale will get de-railed.

These things SCREAM inexperience to me.  I wrote a few months ago about the importance of having an experienced FHA lender doing your deals, and this is just further proof.  A broker with 10 years experience costs your borrower about the same as someone with 10 hours experience, so please be careful who you’re referring your buyers to.

Hope you enjoyed today’s lesson!

Andy

2009 Power Planning For Real Estate Agents

Posted: Sunday, January 4th, 2009
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This is a tool that I’ve been using in my business for many years… I wanted to share it with you and hope it will bring you more success in 2009.

Click the link HERE to view.

Don’t “Slack Off” In Real Estate

Posted: Wednesday, December 17th, 2008
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What effect does “slacking off” at the end of the year have on your business? Well, if you’re not careful, it could be devastating!

I’ve mentioned this to some of you before, but I felt it was important enough to dedicate a whole “weekly tip” column to it…

Many entrepreneurs approach the last 60 or so days of the year with an attitude of “nobody will buy my product/service because of the holidays (obviously I am NOT talking to you if you are in retail!). And to that I say “Phooey!” Here’s why you should NOT slack off at the end of the year…

1. You’ll lose momentum! In your marketing, sales, networking, whatever it is you do in your business, you will lose your forward momentum if you let off…then come January you will realize you have to start ALL OVER AGAIN from scratch and it will be very depressing for you.

2. YES, people buy houses (and other stuff) in December…in fact, December has always been a pretty good month for me! Investors often want to either buy more by the end of the year or get rid of stuff by the end of the year, and they will be looking to you for help! If you slack off, your competition will get those deals and you will be left out in the cold. I know a Realtor that was doing floor time on Christmas Eve a few years back and someone walked into the office and said they needed a house before the end of the year. They were a cash buyer and this agent got the deal because they didn’t give up, even on December 24th.

3. Is your business set on auto-pilot so checks are coming in even if you’re not working? If so, then don’t shut down that machine…it’s a money maker! Does Bill Gates “close” Microsoft in November and December? NO! Because he has a machine to make money even if he’s not there.

IF YOUR BUSINESS IS NOT AT THIS AUTO-PILOT LEVEL: Then maybe these last few weeks of the year could be spent focusing on getting your systems down and implemented so that next year will be even better.
4. You’ll get depressed and down because you won’t feel like you’re accomplishing anything. If you INSIST on taking December off, why don’t you look into volunteering for a local charity for a few weeks…they could really use a hand and it will keep you busy and feeling productive.

5. Last One: A friend of mine, Chris Hurn, just made the Inc. 500 list and he said “There’s no way I could have gotten my company on Inc.’s list if I decided to slack off in the 4th quarter of each year…” so take a lesson from a very smart and successful young man and…

Get to Work!

Mortgage Stuff Every Realtor Better Know…Or Else!

Posted: Tuesday, December 9th, 2008
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OK, you know that I first got in the mortgage business in 1995, so I’ve been doing this for a while, but for the last few years I’ve focused more on the real estate side.  But my husband, Tim is very active in the industry, and since I share an office with him and Eric, I get to hear all of their ranting and raving about the silly things that Realtors do in connection with their deals.
 
So, I figured I’d share some of their pet peeves AND some tips to be more effective in your success: (and whoever you’re using for your loans, they’ll thank you for these tips too!)
 
First:  Unreadable contracts.  In the old days (before fax and email) agents had to run all over town or mail contracts all over the place to get everyone’s signature.  The result?  All signatures on the original contract, nice and neat and very readable.  Nowadays, they are faxed and emailed back and forth so many times that they are usually unreadable by the time they get to the lender.  Many underwriters are asking for cleaner/readable copies of the contract as an approval condition, so go ahead and work on getting it. (fax what you have to your lender to get started, but then work on getting a cleaner copy).
 
Second:  Incomplete contracts.  Most standard contracts at the bottom say “page __ of __”.  If it says there are 4 pages, your lender will need all 4 pages.  Also, they will need ALL addendums to the contract.  One of the ones that is usually missing is the FHA/VA addendum and the amendatory clause.  Such a large percentage of deals these days are FHA, it is probably better just to get it up front just in case.  Also, believe it or not, we often get over contracts with major information missing, such as the sellers name or the address!  Yeah, seriously!
 
Third:  Get your client PRE-APPROVED before showing them houses, otherwise you may be showing them properties that are WAY out of their league.  And once they’ve seen $300,000 houses, a $175,000 is going to look like a DUMP in comparison.  The other reason that this is so important is you will also know if you need to ask for seller paid closing costs and how much.  And yes, you CAN ask for closing costs to be paid even on short sales and REO properties!
 
Fourth:  When you get the pre-approval information from you lender, Stick To It!  One of the big variances we see right now is in the property taxes.  There are many properties that a buyer can pick up very inexpensively right now, but the property taxes are so exorbitant that they don’t qualify for that particular home.  Don’t just ask your lender what price range to shop in, also ask them what property tax figure they used in the pre-approval.
 
Fourth and a half:  Stick to the property type that the buyer was preapproved for, or run it by the mortgage lender.  If they were approved for a single family home, switching them over to a townhouse or condo could jeopardize their approval in 2 ways:  1) the HOA/Condo dues makes their payment higher and they now might not qualify and 2)  Townhouses and Condos are different underwriting guidelines with many lenders, especially if the Condo is not on the FHA/VA approved project list.  BIG difference in the approval here!
 
Next: Don’t put unrealistic closing dates on your contracts.  There is nothing more frustrating than getting over a contract that you only have 2 weeks to close and the property is a shortsale that isn’t even approved yet!  You will just end up with an unhappy client.
 
Along those lines…make sure you are very clear with the property condition with your lender.  If you are doing an FHA/VA contract on a property that needs work, it is most likely NOT going to pass the appraisal.  If your buyer is FHA, you have 2 choices:  1) find them a house that is in good condition (minor cosmetic stuff is ok, but missing kitchens, A/C units, etc. are most likely going to be a problem) or 2) use an FHA 203K streamline loan where some of the repair costs can be rolled into their loan (watch a future column for details on this loan program).  If it is a VA buyer, you have one choice:  find a house that is in good condition. 
 
Next week I’ll share with you how the new FHA guidelines will affect your buyer’s when they go into effect on January 1st (and some lenders are already implementing now!)

Why I’m RAISING the price significantly on a house that hasn’t sold for 445 days

Posted: Thursday, December 4th, 2008
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Why a perfectly good house didn’t sell, even after 445 days!

And call me CRAZY…I’m RAISING the price!

So did my headline get your attention? Good, it did it’s job. And it’s true. This week I got a listing that has been on the market for 445 days! Here’s a little background, I’ll try to keep it short. The sellers had a new home built and figured there would be no problem selling this one when the time came, but they didn’t count on the market tanking. Their agent just kept saying “it’s the price, we’ve got to lower it.” But nothing worked. They were complaining to their financial planner about how maintaining 2 house payments was getting a little old when he suggested they talk to me.

I chatted with them on the phone and did a little research into the comps and guess what I found? Mistakes! Mistakes and missed opportunities.

-First, it was listed as 2098 square foot when it is actually 2378, shorting them 290 foot (they weren’t counting the loft/bonus room/office) Do you realize that at $100/ft they were potentially losing $29,000!

-2nd, it was THE CHEAPEST house in the neighborhood at the time. If you see in MLS a house that’s 10-15% under market value, what’s the first thing that goes through your head? EXACTLY! Short sale and the agent’s too stupid to even know it or disclose it properly! If you have a good listing that is NOT a short sale, PUT IT IN YOUR DESCRIPTION! Not a Short Sale!

-Next, under financing available, it only said Cash or Conventional. Remember, all year long FHA has had increased loan limits and this house would have qualified for FHA financing, and most likely VA too, so any buyer’s agent that searched for houses eligible for FHA financing would have missed this one.

-4th, the loft can easily be converted to a 4th bedroom. I asked the sellers if that was a deal breaker, would they pay for the conversion and they said “absolutely” so my listing says that…

-Next, I did a walk through of the house and gave the sellers a “honey do” list that was just a bunch of minor things, but they looked bad to a buyer:

-take off the rusty screen doors on the sliding doors and store in the garage
-plug the holes in the concrete patio from the termite treatment 10 years ago
-repair the rotten wood around the bottom of the patio beams
-clean the windows in the cathedral ceilings and the top of the fan you could look down on from the loft
-take down the “dead fish” hanging on the wall in the office (it doesn’t bother me, I have a deer over my fireplace, but it may bother your buyer!)
-move the 2 computer desks out of the living room and put one in each secondary bedrooms
-and a few other minor cleaning things

I’m also going to go over and “stage” the home a little bit with some nice brightly colored towels, a welcome mat, some candles around the master garden tub.

Wow, this is going to be a great house to sell!

Here’s the best part, since we’re listing it at $289,900 and we already know he’s flexible, it looks like I have a seller willing to hold back a second mortgage to help a buyer get into the property! Cha-ching! Owner Financing Baby!

Oh, I almost forgot, after we discussed at length all of the different ideas I had and the ways I was going to market it, Mr. Seller said “Andy, I don’t want to offend you, but are you a “regular” Realtor? Because I’ve never heard of some of the stuff you’re talking about” And when I asked him why he left it listed for 445 days with an agent that wasn’t getting results, he answered honestly that he didn’t think it made any difference whether ABC realty’s sign was in the yard or XYZ’s, he thought we were all the same. At least until Brian referred him to me!

So if you have a buyer for an amazing house in Oviedo, the seller is willing to: Owner Finance, Lease Option/Lease Purchase, Hold a second mortgage , convert the loft to a 4th bedroom, pay closing costs, or even take much less for a qualified buyer that can close quickly, then call me right away.

If you don’t have a buyer for that, please take this for the helpful lesson it was meant to be and go review YOUR listings for mistakes and missed opportunities right now… (and if the agent that had the listing for 445 days is reading this, thank you, you’ve made my job easier!)

2 Stories to Share

Posted: Friday, November 28th, 2008
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The first is just a fun one…Tim & I went to a wedding on a Cruise Ship this weekend!  Our friend from college, Scott, got married to Kelly on the Carnival Legend.  Tim was his best man.  We all got on the boat, had lunch at the Lido buffet, the at 1pm we met in the Satchmo Lounge (that’s Louis Armstrong to non-jazzies) for the actual ceremony then went to Medusa’s Lair for the reception.  It was awesome!  Except at 3 they kicked us off so Scott and Kelly could go on their honeymoon!

My second story today is a little more serious.  Remember last week when I wrote in my Commandments that “Thou Shalt be Truthful, Even When It Hurts?”  Well, last week I followed my own advice.  Here’s what happened:  Last Sunday, I was supposed to meet a client at his house in Longwood while he was in town.  My Outlook somehow didn’t save the appointment (I’m sure I did something wrong!) so I forgot and missed it.  On Wednesday, the person that had referred the client saw me out at lunch and said “what happened with so-and-so?”  I had messed up…big time!  I called the client and apologized first, and then, instead of making up excuses and stories (which I was VERY tempted to do!)  I said:

“I dropped the ball.  I’m very sorry.  What can I do to make it right?”

You won’t believe what happened next…nothing!  He said it was ok, he understood, and we’re still going to most likely be working together! (if he likes my solutions for his property).  WoW!  We expect the worst and get all worked up and then BAM!  Nothing bad happens after all when we’re just honest and human.  In high school I had a neighbor that would ALWAYS tell lies, and eventually she would forget what she had told you and she would step all over her own story and you would catch her.  That’s just way too stressful for me to remember who I told what to…it’s easier to remember the truth.  And yes, as I was trying to build up the courage to call him to tell him what happened, the irony of the article I had just written the day before did sure hit me!

America’s Top 100 Growth Markets According to BizJournals.com

Posted: Tuesday, November 25th, 2008
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America’s Top 100 Growth Markets According to BizJournals.com - Florida has 4 in the Top 20!

I just finished reading an article about the top 100 growth markets in the USA, and I was pleasantly surprised to see Orlando as #14!  When McCain was running for President, he said “The fundamentals of our economy are good” and he got torn apart for that comment, however, I agree with him.

Our house prices are TOO LOW, our umemployment is TOO HIGH, and our consumer confidence SUCKS!  These are not based on reality and they are NOT right!  Our market fundamentals support much better, but it is America’s PERCEPTION of things that has gotten us to where we are now…we have BECOME the quintessential self fulfilling prophecy.

Now, I will share with you the article that backs that up with real numbers… expected growth rates in population, per capita income, and private sector employment.

Click Here to go to the Article and Report of the top 100 Growth Cities.

And promise me this… if you are excited about what it says as I am, please forward it to everyone you know!

Andy’s 10 Commandments of Closing the Sale

Posted: Tuesday, November 18th, 2008
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Super-Duper Tips from Andy…Part IV

If you’ve missed the first 3 installments, Click Here

#4: Thou Shalt be Truthful, Even When It Hurts.

Ok, we’ve all done it.  You messed up.  Maybe you missed a deadline, overestimated a value, or just forgot to call a customer back when you promised.  Many people try to make up some elaborate story so they don’t look so bad, but usually that story gets unraveled and you end up looking even worse.  Even though it is painful, tell the customer the truth.  They may be a little upset with you at first, but in the long run your reputation and their feelings will be the better for it.  To soften the blow, maybe you could start with something like this:

“Mr. Seller, I feel that in every relationship, honesty and trust are critical, so I really need to share something with you… (explain what happened), HOWEVER, here’s how I feel we can best fix this (share your solution).  I know I could have just avoided this or pretended it didn’t happen, but I respect you way too much for that, and it wouldn’t have been professional.

The other part of this is that we sometimes want to hide the truth from a client because we are afraid that it will hurt them somehow (example: “No, I don’t think the purple and orange kitchen cabinets will be a challenge to sell, I think they’re GREAT!).  The truth is, you are doing them a DIS-service by not being truthful in this situation.  I often will ask clients right up front:
“do you want me to be gentle or do you want to hear the truth” and most of them will say they want the truth.  Then later, when you have to spring something on them, you can start with “remember when I asked you…”

#3:  Thou Shalt BE the Truthful You.

Be yourself.  Be “real” and be yourself.  Don’t try to keep up with the Joneses, don’t take on a fake accent to sound cooler, don’t try to be what you’re not.

I would rather work with one client that likes me for the “real” me than 10 who think I’m something that I’m not.  But here’s the secret…the one’s that like you for the “real” you have friends that are just like them!  You will get referrals to more people that you’ll like and enjoy working with!

I am myself.  I show up to listing appointments and showing appointments in my Jeep that probably has a nice layer of mud thrown up the side and YES, I’m really wearing jeans, (unless it’s hot, then I might be in Shorts!).  I’m known for telling it just like it is with no sugar coating, sometimes that’s good, sometimes that’s bad, but that’s who I am.  Not everyone likes me for it, but hopefully they RESPECT me for it.

I think the country singer Toby Keith says it best in his song, “Love Me If You Can”

I’m a man of my convictions
Call me wrong, call me right
But I bring my better angels to every fight
You may not like where I’m goin’
But you sure know where I stand
Hate me if you want to
Love me if you can
See you next week with the next installment!

Super-Duper Tips from Andy…Part III

Posted: Friday, November 7th, 2008
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Andy’s 10 Commandments of Closing the Sale

If you’ve missed the first 2 installments, Click Here

#6: Thou Shalt Be a Shining Beacon For Our Industry

The general public is a little leary about the real estate market right now, and it is up to us to reassure them that it is STILL a great time to buy a house.  One of the ways we can do that is by staying on top of REAL market statistics, trends, and variances.

Today I went to a women’s networking group here in Orlando.  It is not a real estate group, just a general topic group.  One of the ladies saw that I was in real estate and she commented “I heard that sales in Orlando were up last month…that’s great!”  I quickly replied to her that yes, sales were up last month, and that they’ve steadily been increasing each month since January!  Amazing that the media is just now mentioning that we’re on the rebound in closings when WE’VE known it all year!

The more you go out and spread the word, the sooner the buyers will get off the fence and once again be buyers.  This is the ONLY way for our market to get back to normal…people need to buy.  It’s your job to tell them that.  GET TO WORK!

#5:  Thou Shalt Be A Master At Your Trade

Things go wrong in closings.  Period.  Everyone knows it’s true, and if you don’t warn your clients up front of that fact, you will be left with egg on your face later when it actually happens.  So part one is…prepare your clients for realistic expectations (especially with short sales!)

How you will become THE go to person for your client and all of their referrals for the rest of their lives will be in how you handle those things that come up.  This is where mastering your craft comes in.

A real estate transaction really is a house of cards.  Each card is a separate party to the transaction:  Buyer, Seller, Home Inspector, Mortgage Broker, Underwriter, Title Company, Insurance Agent, Termite Inspector, the buyer’s parents, the list goes on… a bad “feeling” or report from ANY one of them can send your deal tumbling to the ground.  The more knowledge and experience you have in EVERY part of the transaction, the easier (and more likely) it will be that you will be able to fix the problem and save the deal.

I’ve invested HOURS and HOURS to learn as much as I could about the OTHER parts of the transaction and how they all play together and it has DEFINATELY saved many a deal both for me and for the real estate agents I was doing the funding for.

So the next time you see a course at the board office on appraisals, or understanding title insurance, just take a few hours out of your day and go…it will make you thousands of dollars in the long run.

Your clients will appreciate this level of expertise, and because of it, they will send you referral after referral, and we all know that referrals are easier to close because it’s already been done for you!

See you next week with the next installment!

McCain or Obama…what about our real estate?

Posted: Thursday, October 23rd, 2008
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We’re almost to election time…and I’m about to share a very dear secret about who gets elected and how that affects the housing market and the rest of the economy in general…

I don’t think it matters!

Yep, you’ve heard me correctly. I’ve been in the real estate market for many years now, and in both 2000 and 2004 I got stuck with some investment properties that I couldn’t sell. My mom said “don’t buy houses in election years…the economy is always worse because people don’t buy things until they know who’s elected” and I said…”Phooey!” and bought houses anyways, and got stuck with them. As soon as the election was over, and it didn’t matter WHO got elected (in fact, one year they’re not even sure WHO got elected!), my houses went under contract almost immediately.

I’ve said a lot lately: those of us in the real estate field that can get through this JUNK will come out on the other side smelling like roses & rolling in the dough…I predict that the other side is getting closer and we’re going to see it shortly after the election… and for those of us left standing…we’ll do EVEN BETTER because a lot of the not-so-serious people who only got in the business when times were good have weeded themselves out. (the Orlando board has dues of over $500 due this month…I predict we will lose a HUGE amount of Realtors in Central Florida this month)

Stay tuned…I’m watching with you!

Super Duper Tips from Andy - Part 2

Posted: Wednesday, October 22nd, 2008
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Andy’s 10 Commandments of Closing the Sale

Last Weeks: (you can read them in full  HERE if you missed last week)

#10:  Thou Shalt Find Out Thy Customer’s Needs and Fulfill Them
#9:  Thou Shalt Ask A Lot Of Questions And Explain Why That’s Important to Them

This Week’s Installment:

#8:  Thou Shalt Become A Master Communicator

Clients are getting more and more savvy to the old fashioned “salesy” conversation and they don’t like it.  They want to do business with people that they know:

-are experts in their field
-care about more than just the commission
-are honest and up front when the chips are down

So, how do you show them that’s you?  You need to learn to be a great communicator who can get accross the fact that you can be a tenacious pit-bull when needed and a warm-huggy-fuzzy person when needed.  Attend a class at your local adult ed center (in Orlando it’s The Knowledge Shop) or a book that I recommend is “Instant Rapport” by Michael Brooks (available everywhere, including Amazon.com, about $10)

#7:  Thou Shalt Master the Art of Reading Your Client’s Hidden Meanings and BodyLanguage

This goes hand in hand with #8, however I feel it is important enough to be it’s own commandment.  It is said that we have 2 ears and 1 mouth because we should listen twice as much as we talk.  Many people will talk just to be saying something because they think they are “controlling” the conversation and the sale.  I’ve found that many times I learn the most about the client and their needs just by sitting back and listening, in fact, sometimes I can be spotted sitting in the corner just soaking it all in…people think that I’m staying out of things, but I’ve picked up more from my “corner” then the other people that are actively “in” the conversation.  When you are truly listening, you will hear much more than just the words…words actually account for a VERY small portion of human communication, the majority is:

tone/speed/etc:  Say out loud “I HATE You” like you are auditioning for a movie part (go ahead, do it!)  No really, I want your words to DRIP with hatred…ok, got it?  now say it the exact same way, but say “I love you” instead.  If someone said those WORDS to you but with that tone, how would you interpret it?  See how important tone is?

body language:  again, say out loud “I hate you” while holding up your fists like you’re ready to fight and scowling your face like you’re growling..got it?   Now do the same motions and say “I love you” instead.   See how the words are trumped by the body language?  In fact, if your face was scowling  and your fists were up, I’m probably not even listening to you words, I’m looking for an escape route!

Now hopefully you realize how body language and tone is more important than words…remember this both when you are the TALKER and when you are the LISTENER!
 
Join me next week as I bring you more of “Andy’s 10 Commandments of Closing the Sale”

Super Duper Tips from Andy… (part I)

Posted: Tuesday, October 14th, 2008
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I’m always talking about low-cost and even free marketing techniques to get people beating down your door wanting to do business with you.  We call them “prospects”.  But that’s ALL they are until you convert them to paying customers.  Then we’ll call them “clients” (and we’ll put some money in the bank!).
 
As of today, there are tens of thousands of Licensed Real Estate Agents in Florida, and even more Licensed Mortgage Brokers.  What makes YOU better then the other 99,999?  If you can’t convince me of why I should work with you, I won’t.
 
For the next few weeks, I’m going to share with you some techniques to turn prospects into paying clients and “close the sale”.  Here’s Part I in the series:
 

Andy’s 10 Commandments of Closing the Sale

 
#10:  Thou Shalt Find Out Thy Customer’s Needs and Fulfill Them
 
I know, seems like an obvious one, but I can’t tell you how many people get this wrong!  Tim & I recently went through the purchase of a new car.  We hadn’t decided exactly what we wanted, but had narrowed it down to a small SUV, truck, or another Jeep.  When we told this to the salespeople, some of them tried to steer us over to a car.  Don’t make your job any more difficult than it is!  If they tell you they want a truck, you will most likely NEVER sell them a car! 

This holds true in real estate as well, but be careful to distinguish between their wants and their needs.  They may WANT a 3-car garage and a 5 bedroom with a pool, but would also be very happy in a 4 bedroom with a 2 car garage and a community pool for $50,000 less.
I usually ask it like this: “what’s the least amount of bedrooms that you can get by with” or “is a 3-car garage an absolute necessity or if I found the perfect house with only a 2-car, could you make that work?”
 
Have a heart to heart with them about their wants, and then talk to them about the price difference between that home, and the one that meets their NEEDS.  In today’s market they will probably take the more conservative approach.  Yes, your commission may be a little smaller, but you won’t lie awake at night wondering how long until they can’t afford those big payments anymore!
 
#9:  Thou Shalt Ask A Lot Of Questions And Explain Why That’s Important to Them
 
Buying a home is usually the largest purchase your clients will ever make, so it is critical to your success that you help them find the BEST home for their needs (see #10).  The best way to find out their needs is to ask a ton of questions to get to the core of their desires; however they may feel uneasy with your line of questioning, so it is also important to explain to them up front WHY you ask so many probing questions:

“Mr. & Mrs. Buyer, in order for me to find the perfect home for you, I may need to ask you some questions that are a little different than you might have anticipated, however rest assured that your answers will give me a better feel for your lifestyle both now and in the future so I will be able to best fit a home to your needs, such as do you run a home based business or do you have a child in college that might move back in with you when they graduate, those are things that might change the type of home I look for.  If at any time you don’t feel comfortable with any of the questions, just say so!”
 
Join me next week as I bring you more of “Andy’s 10 Commandments of Closing the Sale”
  

FHA and MI and Disclosures, OH MY!

Posted: Thursday, October 2nd, 2008
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Lots of changes in the industry take place this month…here’s a summary:

First let’s discuss FHA, since it is pretty much going to be the #1 way to finance deals in this market (you’ll see why a little further down).

FHA has increased their MIP factors just a little bit, from 1.5% up front to 1.75 and from .5 monthly to .5 or .55 depending on LTV.

The Seller Funded down payment assistance is gone as of today (Oct 1, 2008).  Please note, there are some actions in Washington to bring it back, so stay tuned, and the county/state downpayment programs ARE still ok, as are gifts from a family member, church, boss, etc.
FHA will no longer allow a “non-occupant co-borrower” IF the primary borrower does not have a “traditional” credit file.

PLEASE READ THIS IMPORTANT WARNING:

As FHA becomes a bigger and bigger player in the finance market, mortgage brokers who are not approved start getting creative at how they can close FHA loans even though they are not approved.  BE SURE that whoever is doing the mortgage REALLY IS FHA approved!  Here’s 2 reasons why this is important:

1.  Some brokers will have their “spouse” be an “employee” of an FHA approved lender so they can put the loan through them.  I recently worked as a buyers agent on one of these and our closing was delayed by about 2 weeks because nobody knew what was going on and the processor was out of another state and it was a REAL mess, AND, the buyer got a really high interest rate because so many people had their fingers in the pie.

2.  There are some companies now that have found a loophole in the FHA rules and they CAN help a client get an FHA loan and get paid for it, but they cannot get paid to originate the loan, they can only get paid as a “consultant” AND they can only get paid out of the borrowers own funds, up to 2%, so this means there will be an EXTRA 2% FEE that your buyer will have to pay, above and beyond the normal fees and closing costs.

3.  You CANNOT originate FHA loans if you are a Realtor, insurance agent, or title agent.  If your company is letting you do both, be careful!

It’s OK to interview your mortgage company and make sure they are properly licensed an approved to originate FHA loans.  This will make your closings go smoother, your customers happier, and your bank account fatter!

Also just announced today…2 of the big Mortgage Insurance companies are rolling out some changes:

GE/Genworth:  Eff. October 6th:  All loan transactions in FL, CA, AZ, NV will require at least a 720 score and a maximum debt ration of 41% (regardless of what the computer approval says)
Radian: Eff. October 20th, Radian will only insure up to 95% in stable markets and 90% in declining markets (yes, Florida is one of them)

Please note!  This does NOT mean that your borrower must have a 720 score and 10% down, this is NOT a FNMA change, each insurance company sets their own guidelines, but expect that we will begin to see more of these types of changes in the coming months!

And of course, don’t forget, the new Florida Foreclosure law goes into play TODAY!!! Make sure you’re disclosing to your sellers AND tracking if they GO into foreclosure while you have it listed.
If you have any questions about these changes or any loan scenarios, please call Tim, Eric, or Myself right away at 407-831-2277!

Mortgage Update: News You Can Use!

Posted: Tuesday, September 30th, 2008
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News you can Use!

This week FHA announced a new way they are going to handle this situation:

Your client is buying a new home and wants to keep the old one as a rental.

Before, you could get a copy of the lease and we could use the rent to offset their payment, but because of the proliferation of people buying the new house and then letting the old one go, FHA now requires that they make enough income to cover BOTH payments as if there were no rental income.  There are a few exceptions to this, but it’s important that your client’s lender knows about the WHOLE deal up front so they can structure it in the best way possible to get the deal done.

In the mean time, if you need Tim, Myself, or Eric to answer any mortgage questions, please call us at 407-831-2277.  We can brainstorm on scenarios and what-if’s to help get your listings sold and your buyers closed!

You Have a New Law To Comply With on October 1st!

Posted: Monday, September 29th, 2008
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Is your listing in foreclosure?  Do You Know?

Last week I had the pleasure of presenting the Keynote Address on the “Risks & Rewards of the Foreclosure & Short Sale Market” at the annual meeting of the New Smyrna Beach Board of Realtors.  It was a beautiful room, overlooking the marina, and it made me want to go outside and jump in!  But all of that turned ugly real fast when I started talking about the new Florida Foreclosure Law (HB643) that goes into effect on October 1st.  Most of them had NO CLUE what I was talking about!
 
So that’s what prompted today’s (long) article.  I believe that a very poor job has been done in informing agents about the new law, and it DOES affect you!  In fact, here’s a clue of how poor the information has been:  one of my friends that is a broker here in Orlando called the FAR Legal Hotline to ask some questions about complying with this new law, and the attorney on the other end didn’t know that the law had been passed!  Do you believe it?
 
So this article is a brief outline of the law and some of the things you might need to consider when dealing with listings that are in foreclosure (or GO into foreclosure during your listing!).  Please keep in mind that I am NOT an attorney nor do I play one on TV, so it is always advised to get professional advice from your attorney.  This will give you a primer on some of the things you may want to talk to them about.

If you’re an insomniac, Click Here to read the whole bill!

First of all, the law covers 2 basic “classes” of people:

1.  Equity Purchaser:

Any person who acquires a legal, equitable, or beneficial ownership interest in any residential real property as a result of a foreclosure-rescue transaction (which is defined as buying the house AND the homeowner maintains a legal or equitable interest in the house, including: a lease option, an option to acquire the property, an interest as beneficiary or trustee to a land trust, or other interest in the property.  Please note: one attorney has pointed out that if the seller stays in the house even for just a few days after closing, they may be deemed to have retained an interest, so make sure the property is vacated before closing or even your regular buyers who intend to move into the property could get caught under this one!)

2.  Foreclosure Rescue Consultant:

a person who directly or indirectly makes a solicitation, representation, or offer to a homeowner to provide or to performs, in return for payment of money or other valuable consideration, foreclosure-related rescue services (which is defined as “any good or service related to, or promising assistance in connection with: stopping, avoiding, or delaying foreclosure proceedings concerning residential real property; or curing or otherwise addressing a default or failure to timely pay with respect to a residential mortgage loan obligation)

Both of these classes have exclusions listed in the law that you can read about.  One of them, the exclusion of persons under s. 501.212 MAY exclude Realtors, but it is not spelled out as such, so most attorney’s I’ve spoken to recommend that you comply with the law anyway.  

A few other clarifications they make:  
- “Homeowner” means any record title owner of residential real property that is the subject of foreclosure proceedings
- “residential real property” means one to four family dwelling units, one of which is occupied by the owner as his or her principal place of residence
- “in foreclosure” means against which there is an outstanding notice of the pendency of foreclosure proceedings recorded (i.e., a Lis Pendens has been recorded)

At the very core, many agents are arguing that they are not acting as a “foreclosure rescue consultant” or any such thing, they are acting within the scope of being an agent, however the minute you pick up the phone to negotiate with their lender to get an offer approved that doesn’t cover the payoff in full, or ask them to delay the sale a few weeks because you have a buyer, you’re probably acting as a consultant to stop, avoid, or delay foreclosure proceedings, aren’t you?

The law calls for several things:  You must have a written agreement, in at least 12-point uppercase type, signed by both parties.  You must give them the agreement at least 1 business day before they sign it to give them time to review it.  They will have 3 business days to cancel it without any penalty or obligation (and this can’t be waived under ANY circumstances). AND, you must give them a copy of the signed agreement within 3 HOURS after they sign it.  The agreement must spell out who the parties are, the exact nature and specific detail of each service to be provided, the total amount and terms of charges to be paid by the homeowner for the services, and the date of the agreement.  It must also have the specific cancellation language as set out in the law text.  You are also prohibited by law from collecting any money, property or other payment until all promised services are complete. ( I don’t know how that’s going to affect IndyMac and their $300 up front fee for a short sale!) 

One of the BIG things the law addresses is when someone purchases a home in foreclosure and then rents, sells, or lease-options the house back to the original owner.  If any of your clients are considering this, PLEASE get them with an experienced attorney to structure it.  There are very strict limits on what the resale price can be and it is actually treated as a financing transaction that is subject to usury and other lending laws, so BE CAREFUL!  (by the way, I have NEVER recommended this as a good business practice, I always make the seller vacate when I have purchased a home in foreclosure).

OK, that’s a lot to absorb, and one of the things to consider is that when you take the listing the home might not BE in foreclosure, but it has a Lis Pendens filed while you have it listed.  Some people are suggesting that you get a “Notice to Homeowner’s NOT in Foreclosure” disclosure where you pre-notify them just in case!  Isn’t this crazy?  You never know which clients will and won’t, so don’t pre-judge.  If your office decides to disclose to everyone, disclose to EVERYONE!

Summary of Points from the ORRA Law Symposium on September 16, 2008

Posted: Thursday, September 18th, 2008
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The Orlando Regional Realtor Association held their annual “Legal Symposium.”  Many things were discussed, some were wayyyyy more interesting than others, but I’ve picked out some of the highlights that I thought were important to keep you informed about, especially if you are dealing with any clients in a short sale or pre-foreclosure situation (remember, all foreclosures are NOT short sales!)

1.  If your seller tells you that they are current on their mortgage(s), do NOT believe them!  Always verify.  You will need an Authorization to Release Information where the seller gives you permission to talk to their lender.  Then call the lender and find out the true situation. (Remember, after October 1st there are new laws to follow if the seller is in foreclosure, so you need to be very careful to find out if they are or not!)

2.  Be extra careful anytime the “seller” that you are talking to is not the owner of record in public records.  There are a lot of scam artists out there right now, and you don’t want to be drug into a legal battle!

3.  Ask the seller if they have signed ANY paperwork at all with any other real estate agents, investors, or short sale companies.  If they have, it might have been a quit claim deed and now you have a big problem…your seller doesn’t own the house any more and he doesn’t have authority to list it or sell it!  They will most likely need an attorney to straighten this mess out!

4.  If your seller is in Bankruptcy, they may still be able to sell the house.  They recommend talking to the seller’s attorney to clarify the situation.  You may need written permission from the bankruptcy trustee to sell the property.

5.  Can your client continue to rent his properties while they are in foreclosure?  The simple answer is YES, he still owns it (for now) and has all of the rights that come with that ownership, however it is possible that the lender may step in and take the rent money. (It’s called and “assignment of rents” and it was probably included in their mortgage docs that they signed, although very few lenders do this)

6.  Under the new “foreclosure fraud” law that goes into effect on October 1st, 2008, are Realtors exempt from complying

7.  Also, FYI, Florida is still #1 in the country for mortgage fraud.  To protect yourself, they suggest verifying EVERYTHING in a transaction, and if it “smells” then go with your gut feeling.  No commission is worth JAIL! (as of October of last year, mortgage fraud is a 3rd degree felony, and if you know about it, you could be in trouble!)

8.  They also recommended doing more of your business (escrow checks to title companies, etc.) by wire transfer…there’s a big problem even with forged cashier’s checks going on right now!
Whew, that should be a brain-full for you right now… and a few things to be aware of in your day to day business.  I’ll keep ‘em coming!

Mortgage Update: News You Can Use!

Posted: Thursday, August 28th, 2008
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As I announced last week, I’m pitching in to help Tim & Eric with the volume of the mortgage business right now (Tim’s my husband).  Tim is the branch manager for Alternative Mortgage, so I guess that makes him my BOSS!  (don’t tell him that I’ve realized that…it will be our little secret!)  Can you spell I-N-S-U-B-O-R-D-I-N-A-T-I-O-N?

Anyways…

Don’t forget, as of October 1st the seller funded downpayment programs like Nehemia and Ameridream will be GONE!  Several lenders have already announced that they will not close them anymore effective now.  They are afraid that if they close them now, they may have problems getting them insured by FHA. 

IF YOU HAVE BUYERS UNDER THIS PROGRAM…GET THEM A HOUSE AND GET THEM CLOSED NOW, DO NOT LET THEM SIT ON THE FENCE AND LOSE THEIR CHANCE (and your commission!)

On a different note, Tim just got signed up with a lender that is allowing seller held second mortgages  again!  This means that if your buyer doesn’t have  their downpayment money, the seller can hold a 2nd mortgage and get the house sold!  This is a perfect situation when the seller is willing to take 5-15% less than asking  price, this way they get full asking price AND a little monthly income from it! (remember, most houses right now sell for about 92% of asking price, so instead of discounting, your seller can get paid!)  We are approved to close loans in every part of Florida.

If you’d like some help setting up a transaction like this, or just running a scenario by us, call  407-831-2277 or email Tim@TimTolbert.com

How ‘Bout Team USA!

Posted: Wednesday, August 13th, 2008
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Are you watching the Olympics?

I’ve been watching some, and I’ve learned a few interesting things:

(first of all, you can watch EVERYTHING live and recorded at www.NBCOlympics.com)

1.  In soccer, statistically, the other team is more likely to make a goal in the 5 minutes after you make a goal.  Do you think that’s a technical fact? or do you think that’s a mental thing… “Oh no, they scored, we better kick it up a notch and score one on them!”  So let’s apply that in our business:  “Susie Realtor had 3 closings last month…I better kick it up a notch and score 4 so I can win the medal!…I mean so I get paid!”

2.  Horses in the equestrian events have their own “Horse Passports” and some horses travel more on airplanes than most humans!  Oh, and horses DO get jet-lag!

3.  “Trampoline” is an Olympic Sport!  (yes, the thing you bounce on!)

4.  So is Badminton

5.  One of the announcers for the Men’s Gymnastics made this comment after one of the (I think) Chinese team messed up.  He said:  “It matters more how you perform in your NEXT event, how you re-compose yourself, than it matters when you make a mistake.”  I saw that in one of the American’s floor excercises…he messed up on one of the stunts and then he lost his focus and got shaken up and then he messed up on several other stunts AND stepped out of bounds.  How do YOU react when you make a mistake? 

6.  Ping-Pong is also an Olympic sport.

7.  Maybe Wii Games will be next! (if you’re not hip, that’s the coolest video game system EVER!)
Keep Watchin’ and learnin’ about what TRUE dedication to your craft can look like and then look inside and see if YOU are truly dedicated.  If not, maybe it’s time to move on.  But don’t ever give up on your dreams.  This year there is a 67 year old Olympian competing in the equestrian events!  by the way, the equestrian competition is one of only 2 where men and women compete together (the other is yacht racing!)

Is 99% Good Enough?

Posted: Wednesday, July 30th, 2008
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Today I had a listing appointment with a client that was referred to me because of my skills in “Alternative Financing” and moving properties that nobody else has been able to sell. 

Anyway, as I printed the Mapquest to his house, there was an ad at the top of the printout that was for Genuine Hewlett-Packard Ink for your printer.  It said:  “1 out of every 4 refilled inkjet cartridges will fail. Trust HP inks for 99% quality” or something along those lines.  Their point was the they only have a 1% failure rate as compared to 25% failure rate among refills.

It reminded me of a handout that I shared with my Women’s Group  a while back, and I wanted to share it with you today .

First, look at your mindset and your business, what quality level would YOU accept if you were put in charge of a product or service?  90%? 95? 98? 99? How about 99.9%?  Many big companies think that a 99.9% quality rate is good, in fact, Motorola commits to acheive “Six Sigma” which is less that 3 rejects per million items produced!

Here’s some examples of what a 99.9% quality level would equal:

-12 newborns would be given to the wrong parents every day
-114,500 pairs of mismatched shoes would be shipped per year
-18,322 pieces of mail will be mishandled per HOUR
-2 Million documents will be lost by the IRS this year
-2.5 Million books would be shipped with the wrong covers
-315 entries in Webster’s dictionary would be misspelled
-20,000 wrong drug prescriptions would be written
-5.5 million cases of soft drinks would be produced with no fizz
-3,056 copies of tomorrows wall street journal would be missing a section
-880,000 credit cards in circulation would have the wrong info coded on the magnetic strip

Does that make you think a little differently about your acceptable levels in your business?  Just a thought!

30 Second Infomercial Revisited

Posted: Wednesday, July 23rd, 2008
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You may know that I am a big proponent of having a strong “Elevator Speech” or “30 second Infomercial”  basically that is how you answer the question: “What do you do?”
 
Today I want to revisit this topic for a few minutes and really get you to stop and think…how would YOU answer the question, “What do you do?”  Really, write it down quickly on a piece of paper…go on, I’ll wait.
 
Got it?  Good.  Now look at what it says.  If someone ELSE had just told you that exact same thing, would your response (with your inside voice of course) have been “Who Cares?”  I’m serious!  Think of how many people you meet every week that when they tell you what they do you think to yourself “Who Cares!”  You’ve just made the decision to never do business with them.  Ever.  Do you want people thinking that way about you?  Didn’t think so.  So here’s some tips:
 
You’ve GOT to get their attention and make a good impression…you don’t have SECONDS to convince them to do business with you, but you DO only have seconds to get them to want to learn more about you (i.e. schedule an appointment!)
 
People do business with people that they like and people like people like them.  Be friendly, smile big, vary the inflection of your voice (don’t be monotone) and be “approachable”  I also like to wear a color that stands out if I’m going to be in a large crowd.  This helps the visual people (like me!) find me later out of the crowd…”I’ve got to find the lady in the purple suit…I want to meet her!”
 
We use 30 seconds as a title, but you may have 10 seconds, 20, or 60, so be prepared to shorten or lengthen as needed.  One of the worst things you can do is go over your time, for example at a networking meeting where you each stand up and have 30 seconds to introduce yourself…if you take longer, the others in the room will have just lost a certain level of respect for you, and if you go WAY over, they’ll start groaning and then you will never get business from them.  Period.
 
And lastly, don’t tell them HOW to get in touch with you, tell them WHY they want to get in touch with you.  Keep this tip in mind when you’re ordering your next business cards too!
 
I hope these tips are improving your business…I recently read that 60% of your business in a down market will come from networking and from your sphere of influence.  I pledge to help you tap into that 60% and the next tool that I’ve found for you is coming up this Thursday at 3pm.  Larry Benet has “connected” with some of the top entrepreneurs in the world and he’s going to share his secrets on Thursday.  By the way, his vision is to raise $1 Billion for worthy causes through his “connections”.  Isn’t that awesome? 

New Laws All Over the Place!

Posted: Wednesday, July 16th, 2008
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This week I have an update on the HB 643 Foreclosure Rescue Law AND an update on some BIG changes in the mortgage market that were passed yesterday.  Both of these may have a HUGE impact on your business and it’s important that you become familiar with both.
 
First, HB 643.  Yesterday I went to a meeting led by Attorney Barry Miller and The Closing Agent.  Barry gave us some insights on the law as it applies to Realtors and what we need to do and know to stay out of hot water.
 
His overall consensus is that Realtors are PROBABLY excluded, although there is some weird wording they use in the exclusion.  One biggie that you might not have thought of though is this - if you have an unlicensed assistant or a secretary in your office perform any of the duties of “foreclosure rescue” which may in a loose interpretation include anything to do with the listing of a home in foreclosure, you may be violating the law.
 
HIS SUGGESTION:  When in doubt - disclose.  There is one disclosure that you will have to give them where you spell out the services you will provide and for what fee.  You will have to give them the disclosure one day before you ask them to sign it, and then they will have 3 days to change their mind.  You will need to give them a copy within 3 hours of signing it (just bring 2 copies with you!) and you won’t be able to collect any up-front fees.  (Please note, in this month’s Orlando Realtor Magazine the ORRA Legal Counsel, Jim Mitchell stated that the new law does NOT impact Realtors that are listing properties.  With so much disagreement that I’ve seen from the MANY attorney’s I’ve talked to and read articles by, I would err on the side of caution right now and disclose even if you may not have to - you’ll never get in trouble for OVER-disclosing!)
 
I’ll keep you updated as I get more info.
 
Second, yesterday the Federal Reserve approved a measure to change some of the guidelines about what types of loans can and can’t be made.  Here’s some of the highlights (or lowlights, depending on how you look at it!):
 
Prepayment Penalties will be restricted and can’t exceed 2 years.  I’m ok with this one.  I hated seeing people put in loans that would start adjusting after 1 or 2 years but had a prepayment penalty for 3 years so the folks couldn’t afford to refinance.
 
Lenders will have to verify both the fact that people make enough money to afford the house AND that they have the downpayment money.  This means that Stated Income/No Verification loans are now a thing of the past!  This is bad news for most of us in this industry that have PERSONALLY used stated income loans, myself included!  No More! These loans served a very good purpose, unfortunately got abused, and now they’re gone for all of us!
 
Mortgage brokers and the industry as a whole got a big gift in being able to still collect YSP or Yield Spread Premium.  This is the commission paid by the lender to the mortgage broker for bringing them the loan.  Many people think this is a bad thing, but in truth, without it, there would be NO such thing as a Zero-point loan because brokers would have to charge all their fees on the front which means more money out of the buyers pocket.

It also looks like they are going to require you to escrow your taxes and insurance from here on out.

Most of the changes go into effect on October 1, 2009 but some not until 2010.  Expect the mortgage industry to change and adapt and be ready for it - don’t worry!
 
Here’s a link to read a CNN article with some more details:

CNN News story to read

Marketing Lessons from the Beer Booth at the Sanford Fireworks!

Posted: Wednesday, July 9th, 2008
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OK, every year Tim & I volunteer OUR 4th of July to work a beer-booth as a fundraiser for the Sanford Rotary group.  Every year, we work our tails off, because EVERYONE loves an ice cold Bud on a hot July day. 

Except this year.  Our booth was DESERTED!!!  No buyers!  Lots of Sellers (us volunteers)!  Felt kind of like the real estate market.  The ironic thing?  Out of 3 couples assigned to our booth (6 people), 4 of us are in real estate! Ha Ha :)

At first we complained a little, (ok, a LOT) and blamed it on our location.  They had intended to put 2 beer trucks right next to each other (they’re like u-haul trucks with beer taps sticking out the side) but our truck actually got put kind of BEHIND the other one, so nobody knew we were there.  It was frustrating because we would see 10 people waiting in line at the OTHER truck, and we had no customers.  After a while of moaning (and sampling our profits!) we decided to take control!  Here’s some of the lessons that might be transferable to real estate in today’s market:

1. Location! Location! Location!  It is very hard to overcome a bad location (but not impossible!).  If you have a listing that is in a bad location, have the discussion with them EARLY in the process.

2. Acknowledge your weaknesses and counteract them.  In our case, I asked “WHY” our truck was positioned so badly and the BUD guy told me it was because he had to put it there so he could tap into the power pole.  You see, the other truck ran on a generator to keep it cool.  So my new “unique selling proposition” was that our beer was colder because we were hooked straight into the power grid of Sanford and didn’t need to worry about a generator kicking off and on every time the temperature got above a certain point.

3. People do business with people they like.  We were very friendly, smiled at the customers, wished them a happy 4th, chatted with their children, made jokes, asked where they had come in from, sound familiar? like every sales course you’ve ever taken?  Anyways, we had several people tell us they came back to us because they liked us better!  One guy was FLOORED when he came back for a refill, commented on the great band playing, and I said “They don’t have anything like this in Winter Park, do they? you have to come to Sanford!” He was shocked that I had remembered where he said he was from!

4. Go Make Customers…Shout it from the rooftops if you have to!  We even sometimes walked out in the crowd and drove them over to our booth, and I went to some of the other vendor booths and DELIVERED them a cold brew!

5. Don’t cut your marketing budget.  We found some BUD flags and zip-tied them to the front of our tent to get people’s attention.  They can’t buy from you if they can’t see you there!

6. Give the People what they want.  We quickly found out that the OTHER truck didn’t have Mich Ultra, which is the low-carb beer.  So that gave us an edge, and we made sure to mention it to EVERYONE!

By the way…we didn’t drop our prices.  Not until the show was over and people were leaving and we realized we only had ONE LAST CHANCE to sell off the inventory we had.  At that point, you cut the prices to a Buck and call it pure profit, because the beer is already paid for either way!
Hope you’ve enjoyed my little story…next year you’ll have to come visit me on the 4th!

Speculation About the Effects of the New Foreclosure Law are All Over The Place…read a few…

Posted: Wednesday, July 2nd, 2008
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Here are several articles that I’ve located discussing the new foreclosure law…most are written by attorneys and how they may not take cases any more that relate to a homeowner in foreclosure, including filing bankruptcys for them!

WOW!  Did any of the lawmakers that voted for this ever even read it?  I’ll keep you posted as I get new info!

Click Here for Article #1

Click Here for Article #2

Click Here for Article #3

Click Here for Article #4

Those articles are all from the eyes of the attorneys, but did you notice in one of them it says that the ORIGINAL text of the bill excluded attorneys, real estate brokers, and mortgage brokers, but that those exclusions were STRICKEN from the final version?

Here’s a whole ‘nother player that’s scared about the ramifications of this new law…Title Companies!  First American has already circulated a memo to their companies that there may be risk involved for the title company handling the closing of any property involved in foreclosure!

Wow!  If the attorney’s won’t represent them, and the title companies won’t close them, and the Realtors won’t list them, and the mortgage companies won’t refinance them, and the investors won’t buy them… I guess there’s no such thing as selling your house once the foreclosure is started!

Now, I don’t think it will really come to that extreme…I’m sure the attorneys are already working on pushing through a “fix” to the law, but stay tuned…it may only cover THEIR tails, not ours!

FHA Releases New Pricing Based on Credit Score and Downpayment

Posted: Tuesday, June 17th, 2008
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On June 11th, HUD released Mortgagee Letter 2008-16 which changes the mortgage insurance premium costs for borrowers. It addresses a few other things too, such as refinances, but today I’m going to cover purchase transactions for you.

The new policies go into effect on Monday July 14th. If your buyer has a property under contract and their lender orders the FHA Case Number prior to the 14th, they will be locked in at the old terms (unless they change properties… case numbers go with the house).

Currently, buyers pay 1.5% of the loan amount in what’s called the Up Front Mortgage Insurance Premium (UFMIP) which can be paid in cash or rolled into the loan, as well as what’s called Monthly MIP that is calculated by taking the loan amount times .5% (1/2 of a percent) which gives you the annual rate. Just divide by 12 to get the monthly premium payment. (Ex: $200,000 x .5% = $1,000 annually divided by 12 = $83.33/month)

Under the new guidelines, the borrower will pay different premium rates based on 2 risk factors:

Credit Score:

-No Score / Non-traditional
-300-499 (minimum 10% down)
-500-559
-560-599
-600-639
-640-679
-680-850

Down Payment / LTV (Loan to Value):
Less than 90% LTV (10% or more down)

-UFMIP Ranges from 1.25%-1.75%
-Monthly MIP is .5%
90.01-95% LTV (5-9.99%)
-UFMIP Ranges from 1.25-2.0%
-Monthly MIP is .5%
95.01+ LTV (Less than 5% down, remember, most buyers use 3%)
-UFMIP Ranges from 1.25-2.25% (the highest, 2.25%, can be reduced to 2.0 with housing counseling)
-Monthly MIP is .55%

As you can see, for the majority of your borrowers, both the UFMIP and the monthly will go higher. Another major change is that borrowers with less than a 500 credit score will now only qualify for FHA financing if they put down at least 10%.

But don’t freak out about these increases… on a $200,000 loan, the raise from .5% to .55% will only change your client’s payment by $8.33 per month.

These changes will help to bring FHA into the current market and ensure that the program will be around for many years to come… something we all will appreciate going forward as FHA loans continue to be the loan of choice for today’s borrowers (it’s estimated that 65% of all loans closed in 2008 will be FHA insured!)

Your Attitude Determines your Altitude!

Posted: Wednesday, June 11th, 2008
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This week we are going to discuss how your attitude determines your success, this takes shape in many different ways, but today we’re going to cover one of the more critical ones:

Self Talk:  If a five year old child heard every day “you’re stupid, you’re worthless, you’re never going to amount to anything” do you think that would hurt their chances of being a successful adult?  Of Course!  So why do we do it to ourselves every single day?  When someone makes a mistake they say “I’m so stupid” or when their business is not going well “I’m never going to be successful, I shouldn’t have even tried”  they are setting themselves up for failure just like that 5 year old.  Can you imagine if every day that 5 year old heard “You’re so smart, you’re going to be very successful when you grow up, the world is lucky to have you”  Do you imagine that child might turn out a little differently?  Certainly!  What are you telling yourself every day?  The next time you make a mistake, say “Hmmmm, that’s interesting, what can I learn from that?  or better yet, the next time you catch yourself doing something right, celebrate it!  Say “Wow, I’m a genius!  The world is lucky to have me!” and see how your outlook changes.

Exercise:  For one week, celebrate everything that goes GREAT in your life, whether it’s a big commission check, getting a great parking spot at the mall, having a good hair day, or seeing a beautiful sunset.  Celebrate It!  At the end of the week I think you will notice a difference and will continue to celebrate the successes forever!

House Bill 643 Passes on May 28th, 2008.  Foreclosure Fraud in Florida Law.  How will it change YOUR business?

Posted: Tuesday, June 3rd, 2008
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I’ve read through this law several times, and I’ve still got some MAJOR questions about its interpretation.  But here’s the one thing that is NOT open to interpretation:

It Already Passed!

It goes into effect October 1, 2008, so that gives us about 4 months to get our attorney’s to interpret it, advise us, and get our disclosures in order for transactions after that time.

If you haven’t read it yet, at the bottom of this box I’ve given you the link.  Read it and then keep your eye on my emails as I get updates for you.

Here’s some of the highlights
(I guess I should say Lowlights!):

1. A person in foreclosure on their primary residence will have 3 days to change their mind when selling their house.  This also means there will be new disclosures and new deadlines to keep track of on your transactions.  Also, many agents have listings they don’t know are in foreclosure…you may now be responsible to find out!

2. Some agents and investors will just choose not to help people in foreclosure because of all the extra potential liability.

3. It will limit the ability to collect any up front fees, which means some of the short sale negotiation companies that charge a fee to get started (and more of them are starting to), the seller will be restricted from paying them.

4. The way they wrote the “exclusions” is kind of weird, in one way it looks like real estate agents are exempt, but in another way it looks like they are not, so we will need to wait for some clarification.

5. It will eliminate “subject to” on a primary residence in foreclosure.
Keep watching as I keep you updated!

Click Here to read the new law.

How do you measure success?

Posted: Wednesday, May 28th, 2008
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This is a question that I can’t answer for you - so I want you to really think about it.

When we were kids, most of us were measured in many ways - our height was “ticked” on a door frame or our grades were compared to the others in class, but now that we’re adults, how do we measure?

Especially right now when many in the real estate industry are not measuring “growth” or “success” but rather survival.

Right now, you may not even see the improvements happening in the market because you are so set on focusing on “survival” (by the way, what you focus on is what you get, so you will only get “survival” level if you focus on it).

Some of the other ways you might think about measuring success against right now:

1.      Am I using down time in my business to educate myself for when it turns?
2.      Am I giving each client 110% of my attention and giving the GREAT customer service?
3.      Am I focusing on other parts of my business other than just “more revenue” like more free time, setting up systems, outsourcing?

You are sitting at the edge of a HUGE opportunity in our industry, I hope you’ve not become one of those people that “can’t see the forest for the trees” and you’re ready to get back on the horse.

I get emails every day from agents across Florida, and for every one that says “I don’t have $49 for a seminar” I have another one that says “thank you, Andy, I’m having my best year ever, even in a down market!”

Which one of these emails will YOU write me?  That’s up to you!

FHA Refinance Updates

Posted: Tuesday, May 20th, 2008
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Last week I wrote about the FHA Purchase updates and reminders for you. This week I’m covering the refinance side. This info may be for you personally, a friend, or a client, so I thought it was Critical that I get this info to you right away…

• Up to 95% Cash Out or 97% without cash out (rate and term)
• “Declining Market” does not apply
• Will allow OVER 100% CLTV, means the first can be 95 or 97% and the second can take it over 100% of value
• Property is no longer scrutinized under a microscope. Major health and safety issues will need to be repaired, but most cosmetic and minor issues will be ok to close
• No more mandatory well, septic, and flat roof inspections
• No minimum credit score required. No score is OK too (must build alternate credit)
• 2 years out of bankruptcy, 3 years out of foreclosure (exceptions in rare circumstances) NOTE: they can be IN a Chapter 13 and can still refinance.
• Loan limits have been increased through 12/31/2008, examples:

o Central FL = $353,750
o Sarasota = 442,500
o St Lucie = 375,000
o Tampa area = 292,500
o Jacksonville = 387,500
o Melbourne = 291,250

• Condos MAY be spot approved as long as it is under 50% rental occupied.

FHA Secure: This is the FHA Bailout program that you’ve been reading about. It’s been around for 9 months and has closed over 180,000 loans so far, helping get homeowners into stable, fixed rate loans and out of their risky adjustables. Here’s the Key: If a borrower COULD afford their payments and only fell behind BECAUSE they suffered a payment adjustment, FHA will still refinance them even if they are currently delinquent on their mortgage!

Even if they owe more than it’s worth, if their current lender will write-down the balance or will hold the rest in a 2nd mortgage, they may still be able to get a new, low fixed rate, FHA 1st.

Of course, this is not intended to make you the all-knowing guru of FHA loans, but I want you to think outside the box when it comes to helping your clients and your neighbors. Everyone’s situation is different, so make sure you refer them to someone very knowledgeable in financing to see what fits for them now.

It is estimated that 35% of all loans closed this year will be FHA, so it is absolutely CRITICAL that you know how to handle them as a real estate professional.

I also wrote a complete review and update on FHA funding in an upcoming article on AgentDirectNews.com…watch for it!

FHA Purchase Updates

Posted: Tuesday, May 13th, 2008
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I’m going to bullet out the high points that I believe you will be most interested in right now. 2006 saw a lot of changes to FHA guidelines, so if you haven’t done one in a while…here’s a refresher:

• 3% downpayment. Can come from savings, gift from a parent, employer or union, grant from non-profit
• “Seller Gift Charities” are still OK for now. This is where the seller “gifts” 4% to a charity which in turn “grants” 3% to your buyer
• No more seller-paid non-allowable junk fees. All closing costs are negotiable between buyer and seller except the $75 tax service must be paid by seller
• Property is no longer scrutinized under a microscope. Major health and safety issues will need to be repaired, but most cosmetic and minor issues will be ok to close
• No more mandatory well, septic, and flat roof inspections
• They’ve made the 203k Rehab loan easier to work with, so your buyer can roll repairs into their purchase loan.
• No minimum credit score required. No score is OK too (must build alternate credit)
• 2 years out of bankruptcy, 3 years out of foreclosure (exceptions in rare circumstances)
• Loan limits have been increased through 12/31/2008, examples:

o Central FL = $353,750
o Sarasota = 442,500
o St Lucie = 375,000
o Tampa area = 292,500
o Jacksonville = 387,500
o Melbourne = 291,250

• Condos MAY be spot approved as long as it is under 50% rental occupied.

It is estimated that 35% of all loans closed this year will be FHA, so it is absolutely CRITICAL that you know how to handle them as a real estate professional.

I also wrote a complete review and update on FHA funding in an upcoming article on AgentDirectNews.com…watch for it!

Lessons from the 134th Derby.

Posted: Monday, May 5th, 2008
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There were a couple of lessons in the bitter-sweet 134th running of the Kentucky Derby. I don’t know if you watched it or not…but Tim and I did. You may not know it, but I actually come from a “horsey” family, in fact one of my horses as a kid was a direct descendant of the 1956 Derby winner “Needles” (Her name was Needle Fly Adams, but we called her “Cupcake”)

Anyways, back to this years race…there were many beautiful stories this year, the trainer in his 70’s that this was his first time in over 40 years of training that he had a horse make it to Churchill, or the jockey that is racing for his son who is deaf and going blind, or the owner that just 10 years ago was broke, addicted, homeless, and left with a young baby girl after her mother was killed in a robbery. Or the 2 Cuban refugees now living the “American Dream”, or the filly trying to be only the 4th to ever win the Derby (a filly is a girl horse).

Yes, many stories of overcoming adversity and challenges to make it to the “big time” Right now, our real estate market has some adversity and challenges that we need to overcome. The first lesson I want to share is that you shouldn’t give up…you shouldn’t let what other people are saying about the market get you down, and we CAN and WILL win this challenging market we are in. All it takes is dedication, training, and a whole lot of confidence, in fact, My secret success formula is simple:

Why + Tools + Action = Success

That’s how Big Brown won the race…even though he started in THE worst position; he had the heart and the talent to win it. But I want to point out the other lesson, the one that isn’t so pleasant…You’ve still got to balance out your work and your personal life…don’t be a workaholic! That’s the Story of Eight Belles, the filly that gals everywhere, including Hillary Clinton, were pulling for. She ran a beautiful race, and actually came in second, but then after the race she broke both front ankles, collapsed, and had to be put down on the spot. Some will say she raced TOO hard, raced her heart out, but at what price?

Are you working TOO hard in your business? Don’t lose sight of what it’s all about…in fact, this week, I want you to take an afternoon off. Take your spouse on a REAL date, take the kids for a walk in the park, get a massage, or just sleep in late one day.

What Image is your Email Address Sending?

Posted: Tuesday, April 22nd, 2008
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bobsdad @ yahoo.com … realestateguy72 @ hotmail.com … sexychick @ Aol.com

What message are you sending every day as you email potential clients, hand out business cards, and pay good money for advertising? Everyone knows that they are free email services, so right off the bat they know you won’t invest in your own business, and the “sexychick” one speaks for itself…(what business ARE you trying to promote, anyway?)

I often mention this in my trainings, and I often get questions from you about HOW to set it up, and how expensive is it, anyways? So today’s tip is called…(drum roll please…)

Get a Real Email!

I’m going to share some quick, simple steps to getting a great, professional email address in just a matter of minutes!

The company I use is probably one of the least expensive AND easiest to use. Here’s the simple steps to getting YOUR professional email up and running:

1. Click on the link at the bottom of this article.
2. Choose your package/Product. You can choose from several, but starting out, these 2 are probably good enough:

A. For ONE domain name and 5 different email names on that account (no web hosting included) Click on “mail” and then select “continue” under “Instant Mail” then click “sign up” and then you will come to the screen to select your domain name. I would suggest starting with your name first, such as AndyTolbert.com (capitals don’t matter!) If it’s available, select it. Then follow the instructions for setting up your new account. Your total cost will be $18.87 per year, that’s a nickel a day! I find more than that on the floor of the vacant houses I go see!

B. For more than one domain and to have actual Web Hosting where you can post a website or a blog and get 600 email names instead of 5, instead of clicking “mail” click on “web hosting” and select the plan you want. Please note, don’t get a bigger plan JUST for the extra domains…it’s cheaper to just buy add-on domains for $6.99 each per year. It’s more about the extras. Probably the Beginner will be enough. It will run you $47.88/year. Once you’ve chosen, go through the same steps of choosing your domain name as above in “A”

Please Note, if you are a real estate agent, NAR has restrictions on using the word REALTOR in your domain name, please be careful with what you choose. I also would try to focus on YOU not your company, because you may not always be at the same place!

3. Once your new account is set up, you will log in to your “control panel” where there are 2 main tabs at the top, go to “administration” then click on the “email” icon then click “new”

4. Type in the email name that you want, such as “listings” @ and then select your domain name from the dropdown list (if you have more than one). you are now setting up an email called “listings @ yourdomain.com”

5. Select “type” either “mailbox” which will create a mailbox for you or “forward” which will just forward it to another email that you already have (like your aol.com email, but remember, if you need to ever REPLY to a client they will see your aol if you use it as a forward) then create and verify your password. You can also select an additional forward, for example, every email you receive at “listings@” will also copy to your assistant. This can be very handy for followup.

6. Now hit “OK” and you’re done! Your new email, “listings @ yourdomain.com” is ready to go!

7. To check your email, you can use their built in web-email login OR you can use the Pop3/imap/smtp servers to set up in outlook, gmail, and other email servers. (can’t help you with that part, it all depends on how you have your computer set up, but there is some great customer support online in your control panel, or you can call for support, they’ve always helped me when I called!)

It’s not even really 7 steps, but if you knew just how easy it is, you’d kick yourself for not doing it sooner! (Thanks to Lee for giving me the idea for this weeks lesson!)

Click Here to go to the site where I buy my domains and run MY emails.

*If your name is not available, try for something that tells about your business (or an extra domain name) for example, besides AndyTolbert.com, I also own AndiTolbert, AndreaTolbert, Realestateinvesting123, REOdomination, turbohousebuyers, and many more. Maybe you would like something like Orlandowaterfronthomes.com, Miamicondos.com or something that spells out your niche. You can even buy a street address for one of your properties and put up a simple one page site for each. it only costs $6.99 per year per domain, and when you sell the house you can cancel it, or better yet, transfer it to the new homeowners!

Hope you have fun with all of your new domains and emails…but don’t get bogged down, just pick one and go out and sell something.

Florida Foreclosure Market Stats

Posted: Tuesday, April 15th, 2008
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WARNING!!! Some of these numbers are about to floor you, so please make sure you’re sitting down.

I’ve tried and tried to show the positive side of everything that’s happening in our market, but when you see numbers like this it’s a little tough. The only positive side of this is if you are specializing in the Pre-Foreclosure or REO niche you will be jumping for JOY at these numbers, mainly because your niche is showing NO signs of slowing down anytime over the next few years. Here they are, in all their glory:

All stats are through the First quarter of this year (January, February, March) in FLORIDA

Number of houses already taken back by the bank this year (will be on the market soon with Realtors as REO’s) 18,055

Number of new foreclosure filings (LP’s) so far: 118,301
Percentage of all Florida households filed on in 1st quarter: 1.87%
If you multiply that by 4 (quarters) we are on track to be 7.48% of the whole state by the end of the year! Yes, 7 and a 1/2% of ALL Florida households will be filed on this year!

Here’s the top 10 (worst) counties:

#1 Osceola: 3,127 filings, 5.13% of households, on track for 20.52% for the year, that’s 1 out of every 4.87 households will be filed on this year! The “on track” is if the rate of foreclosures stays exactly the same for the rest of the year, if it increases or reduces the rate later this year, these numbers will be off.

#2 Lee: 7,981 filings, 4.23%, on track for 16.92% or 1 out of every 5.91 households
#3 Flagler: 882 filings, 4.14%, on track for 16.56% or 1 out of every 6.04 households
#4 St Lucie: 2,799 filings, 3.64% on track for 14.56% or 1 out of every 6.87 households
#5 Walton: 454 filings, 2.74% on track for 10.96% or 1 out of every 9.12 households
#6 Broward: 16,872 filings, 2.58% on track for 10.32% or 1 out of every 9.69 households
#7 Dade: 19,720 filings, 2.54% on track for 10.16% or 1 out of every 9.84 households
#8 Pasco: 3,685 filings, 2.50% on track for 10.00% or 1 out of every 10 households
#9 Hernando: 1,272 filings, 2.29% on track for 9.16% or 1 out of every 10.92 households
#10 Orange: 7,671 filings, 2.28% on track for 9.12% or 1 out of every 10.96 households

Did #1 shock you? 20% of the whole county will be in foreclosure this year?!?! Holy Cow!

Short Sales MAY STILL OWE Income Taxes!

Posted: Tuesday, April 8th, 2008
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This is a topic that I hear over and over every time I’m meeting with agents and investors, and it is a big misconception that the tax law changed and ALL short sales don’t have to pay taxes. That is absolutely NOT true! I have reprinted this article (with a little more in-depth explanation for you, so even if you already read it, please take a minute to read it again) and I will probably re-print it every quarter until we’re out of this mess! Please feel free to forward it to the other agents in your office, title companies, mortgage companies, everyone that you feel might benefit!

On December 20th, Bush signed into law a measure that will change the tax effects for a homeowner in foreclosure. These are critical changes that may change your client’s outlook on a deal (in fact…maybe you lost a deal last year because of this tax burden…it may not be too late to call that client back and revive the deal!)

In a nutshell: If a homeowner who was in foreclosure worked out a short sale agreement with their lender, the amount of debt that the lender “wrote off” is considered as ordinary income to the seller. That means if you negotiated a $50,000 reduction in the payoff to help get the property sold, that seller would have to claim that $50,000 as taxable income on their tax returns (resulting in a potential tax bill between $7,500 and $17,500). Some sellers decided NOT to sell on a short sale for this very reason…but that’s where this new law comes in!

It makes that “income” from written off debt NOT TAXABLE to the seller under certain circumstances! Here’s some key points:

- Only applies to their principal residence, not 2nd home/vacation/rentals/speculation. So many of our clients that are in an upside-down situation on non-owner occupied properties may still owe income tax.

- Effective for debts discharged between Jan 1, 2007 and Dec. 31, 2009

- It applies to debt for acquisition, construction, or substantial improvement to the property. This means that if someone had refinanced and taken cash out or paid debts off, then the forgiven debt WILL be taxable. Think about it…they DID get cash out of the property that they never paid taxes on…..now they will have to.

- Forgiveness is limited to $2,000,000 (I think we’re OK there!)

- The amount of forgiven debt will be reduced from the sellers basis in the house. Most sellers will still be able to sell with no capital gains bill as long as they’ve lived in the house for at least 2 years, but people in their homes less than 2 years may still have a surprise! And for investment properties, they will either pay long or short term capital gains based on how long they held the investment.

Cool Part of the Law #2: Another thing that was in this new law that you will probably like…an extension of the tax deductibility of Private Mortgage Insurance (you know, that monthly bill your clients pay when they don’t put down 20% on a home mortgage!). This extension is good through Dec 31, 2010, and again is only applied to acquisition mortgages on a “qualified residence.”

Cool Part of the Law #3: And one last part that might apply to your clients…if a client’s spouse dies, they now have 2 years from the date of the death to sell that home and take the full $500,000 exclusion for a couple in a primary residence. After that time, they will only be entitled to the single person’s $250,000 exclusion on the gain they received from the sale. It used to be only in the year of the death, which would be difficult if they passed away towards the end of the year.

Please remember, I am NOT an accountant, and I am not giving you or your clients legal or accounting advice, and neither should you! Anytime you have a client that asks you about the tax ramifications of ANY deal, refer them back to their CPA or attorney for advice.

How Would Andy Do In Jail?

Posted: Tuesday, April 1st, 2008
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Well, not me, but my guest, JT Foxx, almost went to jail Sunday! I was just going to get the ticket. Let me tell you the story before you jump to WORSE conclusions…

You see, JT Foxx, Host of a radio show in Chicago, was in town Saturday for a speaking engagement, so I invited him to go on the St Johns River on my jet-ski’s Sunday. We were having a grand old time, we stopped at a restaurant right on the water and had Sunday brunch, and then headed towards the house. Now, right in front of our house is this section where the river widens and it’s a great place to jump some wakes put off by the big boats coming through. Tim had been driving and I was passengering and JT was on the other bike. Tim and I had just switched so I was driving and I was having a good old time jumping some waves, right up until the blue flashing lights showed up behind me… Uh Oh!

Now let me tell you, I’ve been riding these waters for 4 years, and never had a problem, and here I have a VIP guest with me and I get pulled over. I pull over to the officer’s boat, and he is FUMING mad, I mean you can see the veins in his forehead and his voice is cracking when he talks- mad if you know what I mean…he starts shouting about $63 tickets and accidents and we’re going to kill ourselves and then he points at JT (who has now pulled over closer to us to see what’s going on) and says “and him, I should take him to jail right now, I could call his behavior a misdemeanor and take him in right now!” (veins pop, voice cracks, HELP! I need bail money!)

But then Tim and I practiced some very simple negotiation and crisis management techniques…
1. Calm them down, do whatever you can to get their attention OFF of the crisis. How did we do that? We kept our voices and tones very calm and collected, and spoke just a little slower than normal.
2. Whatever you do, don’t argue with them. We were very polite, apologized, asked what was the RIGHT way to maneuver in this area, etc.
3. Give them what they ask for. When he asked for our license and registration we gave it to him (he actually dropped one of the registrations in the water, so now HE felt kind of bad, which helped us even more as we said “don’t worry, mistakes happen”)
4. Try to change the subject to something more pleasant. Tim started asking him about speed limits on the river. Now he got to show US his knowledge level.
5. Apologize for making his day harder. We said something like “I’m sure you don’t want to be out here dealing with a bunch of yahoos and drunks on the water on such a nice day like this” to which he quickly agreed. (please note, we had NOT been drinking, unless you count iced tea!)
6. If all else fails…blame it on the tourist from Chicago!

Seriously though, how many of these lessons can you use with a seller who is irate over a low offer? or a borrower that’s just been turned down for a mortgage? or a client with a house that just appraised low? These are solid techniques that you can use in your real estate business, and they’re not too bad to keep JT out of jail too!

After our initial fear had passed, we joked a little about what our time in jail would be like…”so, what are you in for?”…”I killed 4 people because they looked at me funny, how about you?” … “me, I rode my jet-ski too fast” How would Andy do in jail? I’m sure I’d make the most of it, I’d catch up on my reading, lose a few pounds, and probably buy a few houses from my fellow inmates!

By the way, when it was all over, I turned to JT and said “this is going to be on your radio show, isn’t it?” he quickly replied “Yep! first thing!”
Till next week, stay out of jail!

How yummy do your houses look?

Posted: Wednesday, March 26th, 2008
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The other day I stopped in to KFC for lunch when Tim & I were out looking at some properties to put offers on. I don’t know about you, but when I go to a fast food restaurant (which isn’t very often anymore) I usually tend to order the same thing, so I don’t need to look at the menu. But this day was different…Tim was outside on the cell phone, and I stood for about 10 minutes staring at the menu board…it wasn’t because I was trying to decide what I wanted, it was because I was enthralled by the fancy new LCD TV screen menu boards. Yep! They were actual big-screen TV’s up on the wall that were changing images and scrolling through the different menu items. I was in a trance, and I didn’t even know why!

Then it hit me…the bucket of chicken on the TV actually had hot, tasty steam coming off it! The graphics were amazing, and there was actually a little puff of moving steam on the chicken! I wanted to order the bucket because it LOOKED so amazing, even though there were only 2 of us! It was almost like subliminal advertising…I wasn’t even in the market for a bucket, but I was actually craving it because they made it look so yummy!

Are your buyers experiencing the same thing when they look at your houses and listings?
Does the house look SOOOOOO Yummy that they want to buy it even if they weren’t in the market to buy a house? If not, maybe that’s why it’s not selling. Let’s look at some little things to see if you’re “yummy” enough…

Curb Appeal: When they pull up to your house (or look at pictures) does their mouth start to water and they WANT IT! If you don’t see anything wrong with the curb appeal, invite a disinterested 3rd party over to give you a review. When I was a “regular” buyer, I remember not even getting out of the car with our Realtor if I didn’t like the looks of it from the outside.

Tickle all of their senses: at KFC, I was already hungry, then I smelled the fried chicken, then they visually showed me the food in an appealing manner. Are YOU prepping your houses to hit all of your buyer’s senses? Plush carpet that they sink into, vanilla-scented air fresheners in several parts of the house (avoid florals, some people are allergic), a beach ball floating in the pool, nice music playing, a romantic fireplace, an (empty) bottle of wine and 2 glasses on the counter…are you getting the picture?

Make it easy to do business with you: Isn’t it easy to just order a #5? Make it that easy to buy your house too. Some ways you can do that are:
Have the house pre-inspected- this assures them that what they’re buying will not cause them problems in the future
Refer them to a GOOD mortgage broker if they don’t already have one
Offer owner financing to make their lives easier (in their eyes)
Make it easy to track you down if they need further info
Have the house ready to move into (is your whole punch-list finished?)

And here’s the thing to remember…you DON’T need to be the lowest price in the market to sell, you need to be the BEST for the money that you’re asking.

Happy Selling!

Here’s the Answer to Last Weeks Success Riddle…

Posted: Tuesday, March 25th, 2008
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Thank you to everyone that sent in guesses at the success riddle from last week. That was a ton of fun…I think I’ll do it again! Here’s some of the answers you gave:

The subconscious/Your mind
Your Habits
Your Attitude
Your Conscience

I think that all of these are very good answers, and all could probably be interpreted as “right” Here’s the riddle again as a reminder…

“I am your constant companion. I will push you forward to success or I will drag you down to failure. I am completely at your command. 80% of what you do, you might as well hand over to me and I will do it promptly and I will do it correctly. I am easily managed; you must merely be firm with me. Show me what you’d like to have done, and after a couple of lessons, I will do it automatically. I am the servant of all great people. Alas, I am the master of all failures as well. All who are great, I have made great. All who are failures, I have made failures. I am not a machine; but I do work with the precision of a machine and the intellect of a human. Take me, train me, be firm with me, and I’ll lay the world at your feet. Be easy with me, and I will destroy you!”
“Who am I?”

The answer that matches the one I had in mind is…Your Habits! Congratulations to Carol for being the first to reply with the answer!

American Idol Lessons for Real Estate? Yep!

Posted: Tuesday, March 18th, 2008
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Are you playing it safe or being OUTRAGEOUS in today’s market?

I don’t know if you’ve been watching Idol or not, and honestly, I don’t particularly like watching it, but for whatever reason, Tim’s been watching, so I’m stuck. But that’s ok! Because I noticed something… Amanda Overmyer is WACK! I don’t even think she’s that great of a singer, but she’s still there because there’s a certain chunk of the population that LOVES her and keeps paying for text messages to vote for her.

The only reason she’s still there is because she stands out and is not afraid to be different. If she showed up next week with plain brown hair and stood motionless and sang a plain-jane song, she’d be boo’d off the stage! Now don’t get me wrong, a lot of viewers absolutely do not like her, but enough people DO like her to keep her around. Are you doing that in your life and business? Are you playing it “safe” so that everyone will like you and you actually end up going un-noticed because you didn’t stand out?

Over the years I’ve heard people commenting on different Realtors in town and it’s something like “oh, they’re so full of themselves, they plaster their stupid picture all over the place, and then every time they sell a house they send those stupid “just sold” postcards to my whole neighborhood” I can’t stand it!” Ever heard that? Whether you like them or not, THEY are standing out in the market and THEY are closing deals in YOUR farm area!

That would be a good lesson for US to watch, and you may have noticed it’s one that I’VE personally been implementing in both my training events AND this weekly email musing. I don’t worry about being “nice” so that EVERYONE will like me. I tell it like it is, I often stand out, and I often go AGAINST the normal grain of the real estate industry. Some people love me for my honesty, some people don’t. That’s OK. Even when I get emails back from folks that disagree with something I’ve said, I thank them for taking the time to actually read it and THINK. Too many real estate professionals aren’t thinking right now, they’re in a zombie trance of frustration and pity and if I can get just ONE person to stop and think and make a difference, then it’s all worth it to me.

Now, Go Be OUTRAGEOUS Today!

Andy Predicted the Turnaround…Is it Here?

Posted: Wednesday, March 12th, 2008
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I’ve been saying it for months…the market is NOT that bad AND it’s a great time to be buying property, both as investment AND to live in, and now it seems the market may be agreeing with me! 

The thing that was really starting to worry me was that our agents and mortgage professionals had begun to lose faith in our market, and that attitude comes through when they’re talking to clients.  That’s why I have spent so much time on this topic, to get you to change YOUR mindset so your clients can change theirs, so the market can get out of this panic mode and back to where it needs to be!

Well, this month we’ve gotten some good news, and I not only want to share it with you, but I would also like you to share it with YOUR clients, agents, co-workers, neighbors, friends, family, in fact, everyone you come within 5 feet of!  That will get the positive vibe out there and Real Estate will once again become the financial powerhouse that we all know it should be!

First, the Orlando Area MLS stats were just released, and there’s some good news there! Here’s a few things I noticed that I liked:

1. Our inventory has stayed pretty much constant since May of last year, only fluctuating a little bit.  As long as it’s not growing at astronimical rates like it was!

2. Interest rates are almost a whole 1% lower than they were in August of last year.  The lower the rate, the more affordable the homes will be for buyers.

3. Total contracts and New contracts jumped back up to levels we haven’t seen since last summer! (and summer is the hot buying season!) If you actually look at the bar graphs, December was the lowest point, and January and February are trending upwards quite nicely!  Keep it up!  By the way, these contracts translate into CLOSED sales in March and April.  Yayy!

4. Closed sales are back up a notch too!

Second, Tim was talking to an appraiser earlier this week and asked him what he’s seeing out there right now as far as appraisals and values.  His answer was that for the last few weeks, he’s seen the values going up on almost every appraisal that he’s worked on.  Double Yayyy!!!

Third, and I mentioned this one a few weeks back already… 14 Florida cities made the Miliken Institue’s 2007 List of Top Performing Cities.  Florida also boasted 7 cities in the top 30 nationwide, 3 in the top 10, and the #1 city on the list was Ocala!  This rates cities mainly on job, wage and salary, and tech growth.  Where there is job growth, there are housing needs.  We are in the housing business. 
BINGO!

Fourth, real estate is on SALE!  I don’t know about you, but I am a sale shopper.  I love buying the exact same thing as my neighbor but paying less for it.  Don’t you?  Right now, you and your clients can buy property at ridiculous low prices that WILL NOT be around much longer!  Not only that, but in many cases you can buy property right now as investment that actually will cash flow! (I know, do you believe it? We haven’t seen that in Florida for a long, long time!)

I could go on and on about why real estate is an awesome investment vehicle, industry, business, addiction, and much more, but why don’t you just go see for yourself.  Show some faith in your industry…go buy a house today!

See ‘ya next week!

Andy

Real Estate Agents Have “Salmon Syndrome”

Posted: Wednesday, March 5th, 2008
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Have you ever seen the Salmon on TV?  Every year they swim upstream to get to their spawning grounds.  Upstream…against the current…up and over waterfalls…against all odds.  And yet they do it every year.  I’ve often wondered…do any of them ever give up?  I mean, it’s in their nature…their very DNA to take this same treacherous journey every year.  I’ve been wondering this a lot lately, because it’s kind of how I feel.  Like I’m swimming upstream, against the current, against the market.  Every day I get an email or a call or an article about how awful the market is, and every day I write and talk about the opportunities in today’s market.  But I feel like I’m swimming upstream.

If the salmon were allowed to swim downstream for a few years, with the current, would it be harder if they all of a sudden had to go back upstream?  That’s kind of what’s happened in our real estate market.  We had it sooooooo easy for so long that a lot of agents don’t even know what normal feels like!

Well, I’m willing to swim upstream for a while…hey, it’s in my DNA!  I’ll be swimming upstream and shouting to all of you other salmon out there swimming with me “hey, you’re almost there!  Just over that next jump!”  I’ll swim for as long as you will swim with me and get our market back to where we KNOW it should be in the bottom of our hearts.

To quote Patrick Swayze in Point Break (the surfing movie):

“Fear causes hesitation, and hesitation will cause your worst fears to come true”

See ‘ya next week!

Andy

Veteran’s Day Every Day…

Posted: Thursday, February 28th, 2008
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This weekend I was at a convention in Atlanta, and the Saturday morning breakfast was honoring the veterans in attendance.  I’ve been the last 3 years, and it’s one of my favorite sessions of the whole weekend.  Not because it’s happy…in fact the exact opposite, I usually end up tearing up (like I’m doing right now writing this.)  Now I didn’t come from a military family, so I’ve never seen the pain and sacrifice “first hand” but that doesn’t mean I have any less respect for what they do. 

They brought in 28 wounded soldiers from Fort Benning as our honored guests, and as they came forward to be presented with a Veterans Pin, many of these guys were walking with canes or noticeable limps.  These were guys from their 20’s-50’s, all of whose lives will never be the same, in a way that I couldn’t even BEGIN tofathom.  After the breakfast, I found as many of them as I could and thanked them for being there for us.  And for Specialist Joshua Benefield, when you read this… I told you I wrote about all kinds of things on my Real Estate Blog! (thanks for posing for the picture!)

Whether you believe in any war or not, please don’t forget the guys and gals that are there doing their JOB for our country.  Don’t just honor them on Veterans Day, thank them every chance you get. (There were also 3 veterans from World War II, there’s not very many of them left, but I love seeing how they hold their head up high with pride when they feel the appreciation in the room!)

Our guest speaker, Lt. General “Buck” Bedard summed it up like this:  “I wish we could take the great pride and patriotism that’s in this room this morning and sprinkle it across this great land”

We are able to be entrepreneurs and live the life we do because of this great country we live in, and for all that we don’t like about it…I still believe that we are in THE best country in the world!

Andy Out!
 

Sociology Lessons for Real Estate

Posted: Wednesday, February 27th, 2008
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I get asked all the time… “Andy…is the Florida market really as bad as they say it is?”  and my answer is a resounding NO.  However the people I’m trying to SELL my houses to believe that it is, so therefore it is.

Does that make sense?  The market is NOT that bad!  Rates are ridiculously low, sellers are getting realistic on their prices, now is a GREAT time to buy a house, whether you are an investor, a first time buyer, or a move-up buyer.  But most of America BELIEVES that it is a bad time to buy, partly because all the morning news shows keep bringing on guests that say “rent for one more year…prices will be lower”.  By the way, if everyone rents for one more year, will prices be lower?  YES! Because sellers will HAVE to lower prices to get things sold.  So peoples BELIEF that the market is bad and prices will go even lower will LEAD to that happening!  Got it?

Driving back from Atlanta on Sunday, I was listening to a CD that talked about the Pygmalion Effect: when you want something so strongly with so much conviction that it does become true.  They were talking about it in terms of goal setting, but all I kept hearing in my head was: “that’s EXACTLY what’s happening in our market!”

The CD also spoke of a sociologist named Robert K. Merton, who in 1948 coined the term “self fulfilling prophecy” which is defined as “an expectation or prediction which is initially false, which initiates a series of events that causes the original expectation or prediction to come true”  (sound familiar to real estate?)
The phenomenon has 3 basic phases:

1. belief in something which is false at the time
2. you behave in a way that you could not have normally done in the absence of that false belief in your mind
3. the behaviors displayed in phase 2 actually create events which make the belief then come true

He gives a hypothetical example of the collapse of a solid and solvent financial institution

phase 1. rumors spread that they were on the verge of bankruptcy (which was not true at the time)

phase 2. which led to massive withdrawal of savings by panicked depositors

phase 3. which led to collapse of bank

Wow!  Sounding more and more like the real estate market, doesn’t it?  We as the real estate professionals need to start a phase 1 rumor ourselves, that the market is GREAT!  Now is the time to BUY!  Rates are at one of the lowest points in HISTORY!  Oh, wait, that’s not a rumor, it’s TRUE!  We need to be as diligent spreading the POSITIVE message about the market as the nay-sayer’s are, then we will create our own self-fulfilling prophecy where the market takes off again!  Yayyy!

Here’s a parting thought from Einstein (he was pretty smart, wasn’t he? Maybe we should listen to him!)

I’d rather be an optimist and a fool than a pessimist and right.

See ‘ya next week!

Andy

Deal-Killer Words…And some suggestions for replacements!

Posted: Tuesday, February 19th, 2008
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Last week, I talked about how some words actually may be SCARING your clients away.  Today I’m sharing a list of some words and phrases that may be taken the wrong way by your clients, along with some suggestions for what you could use in it’s place.  Have Fun!

PRICE = Total Investment
DOWN PAYMENT = Initial Investment
CONTRACT = agreement, paperwork, forms  (Contracts are a scary legal document)
BUY = own, invest
SELL / SOLD = get them involved (ex: “I got one of my clients involved in a rental duplex”)
DEAL = opportunity, transaction (Deal sounds like a used-car salesman)
SIGN = OK, endorse, authorize, approve
COMMISSION = fee for service
PITCH = presentation, demonstration (Oh No! Not another sales pitch!)
PROBLEM = challenge
OBJECTIONS = areas of concern
CUSTOMER = people we serve, client
LOOKER/TIRE KICKER = researcher (I will actually PRAISE them for being well-informed)
PROSPECT/SUSPECT = future client (cops look for suspects!)
APPOINTMENT = visit, the time we share (appointments are for Doctors, and you wait hours)
TERMITE/WDO REPORT = inspection report (and explain they look for bugs, rotten wood, etc.)
DISCLOSURE = notice, notification (We usually DISCLOSE something negative)
ADDENDUM = other terms, “this is where we put the ___ you wanted to ask for”

Think about it this way…which sounds scarier?
1.  Sign the Contract   or,
2. Approve the Forms

Exactly, 1 is a big scary step that they start wondering if they’re doing the right thing, and should they talk to their Mom first, and do they need an attorney because they had always heard not to sign a contract until you’ve had an attorney look at it… you get the picture!

Just a few little changes in your speech traits can result in many more closed transactions.

Good Selling!
 

How Do You See YOURSELF In Today’s Real Estate Market?

Posted: Tuesday, February 19th, 2008
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The reason I ask is simple. Last week I was at a networking meeting, you know, a place where you’ve paid money to come and convince the other people in the room why they should do business with you. Well, at this particular meeting, everyone has a chance to stand up and give a 30 second “commercial” to the whole group, and this is your chance to really shine and turn on the charm, right? Good, you’re with me so far. Oh, and let me add, the “theme” of this meeting was “How to be a better networker.”

So, when it got to be one of the people’s turn, she stood up and said “I’m Jane Doe, I’m a Realtor and Mortgage Broker, and we’re a dime-a-dozen…”

WHAT!?!?!?! The group kind of stopped her right there (ok, well maybe I stopped her right there, but the group was all right there with me by the looks on their faces!) And then SEVERAL of us gave her some tips on how that could be turned into a positive, like maybe “You may think that we’re a dime-a-dozen right now, but here’s why I’m different…”

Would YOU want to do business with someone that believes that SHE is a dime-a-dozen commodity? I know I sure don’t, and if that’s the “stinkin’ thinkin’” that you’ve got in your head, you’re going to have a tough road ahead of you. To make it in today’s tough market, you’ve GOT to have a positive attitude, especially to the outside world.

Later that day, I got an email from Jane, saying that her feelings had been hurt, and to quote: “And if I offended you or any other realtor in the group then I will apologize for being honest and for being myself.”

Here’s my response, verbatim:

1. it was meant constructively…I REALLY want everyone in (the group) to do well, even when times are weird, and

2. I am spending TONS of time, energy, and money to get a POSITIVE message and image into the public about both Realtors and Mortgage Brokers. I write between 10-15 articles per month and travel all over Florida to spread the positive side of the market and help professionals see themselves as exactly that, professionals. It was very hard for me (and the other ladies, based on their reactions too) to hear that I AM something that’s “a dime a dozen.” As long as WE think of ourselves like that, so will the general public AND our clients.

I’m often telling agents and brokers today that if they LOVE the business they are in…fight with everything they’ve got to keep it afloat, and if they’re out of love with it, maybe it’s time for a change. I don’t know you well enough to know which one you are, but I definitely see a little bit of defeat, I hope you are able to overcome that and excel. My husband is working on more loans right now than he’s had in YEARS, so the market will definitely provide.

I hear so much feedback from people about how bad the market is and how little business there is, and how offices are closing down. That’s not what’s happening in MY world, so I think I’ll keep my head stuck in the sand, not listen to the nay-sayers, and continue to do what I’m doing for as long as it works, in MY world.

And to use your own words, “And if I offended you or any other realtor in the group then I will apologize for being honest and for being myself.” Because that is also what I was doing, being honest and being myself.

Was I a little harsh? Maybe, but I think we all would agree that too many people are “coddled” today, and it’s turned us into a bunch of wimps that are afraid to say anything because they’re not “politically correct” or they might offend someone. I decided at a very young age (like 3 I think!) that I would not be afraid to tell it like it is, even if not everyone likes what I’ve got to say. Yes, over the years it’s gotten me in hot water, but I’ve never lost sleep over not being true to myself. I have more respect for the people that get out there and are vocal in their beliefs (even if I personally don’t agree with them) than I am for the people that sit at home on the couch and just complain about the world they live in.

There are some people that make things happen…

there are some that watch them happen…

and the rest just sit around and wonder what happened…

which one are YOU?

Deal Killing Words for a Real Estate Transaction…

Posted: Tuesday, February 12th, 2008
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Are you turning off clients by the “lingo” that you use?  You may be and not even realize it…here’s what I mean:

Last week I had to take my little Beagle, Rico to the vet specialist.  He’s been limping on his back leg and picking it up when he runs for the last few weeks.  Our regular vet wasn’t sure, so we dropped a few dimes and went to the “specialist”  (by the way, people will pay extra for a “specialist”, it was $95 just to walk in the door and the place was PACKED!  Remember that in YOUR business… are you a “specialist”?)

Anyways, the diagnosis is:  a torn ACL which is one of the ligaments in his knee.  Yes, the same thing that football players get all the time, and the surgery costs about the same too!

But while we were there, we asked the “specialist” about another concern, you see, Rico has had a few episodes that seem kind of like epileptic siezures, so we asked her about that.  She said that there’s not really a way to test for the cause, and unless it happens in front of them it’s hard to tell what the problem is.  Then she said those jaw-dropping words…she suggested that we should do what’s called “benign neglect”

Do you believe it!  She suggested that we neglect our baby!  How can we neglect our baby?  How can she even say such a thing?

Here’s the problem…all my brain heard was the word “neglect” and while I was freaking out in my head, I wasn’t listening to what she was saying…

Are YOUR clients freaking out in their head because of something you said 5 minutes ago and they haven’t heard anything you’ve said since?  You better check!

I put my foot down and demanded to know what she meant by “benign neglect” and she said “that just means we’ll wait and see what happens and keep an eye on him.”

Oh, that’s it?  That’s not so bad.  Why didn’t she just say that to start with and we wouldn’t have had the whole misunderstanding!

Sometimes people tend to fall into using industry lingo.  It may be habit because those are the words we hear around the office and in classes.  It may be because we think it will make us look smarter to our clients.  I don’t know, but it usually leads to confusion for the client, and sometimes they may run scared because of it.

Here’s a few things to keep in mind when dealing with clients:

1.  Unless they have a masters degree in finance and real estate, (actually, even if they do!), don’t assume they know ANYTHING.  Explain everything in very clear simple terms.  A good rule of thumb is to describe things as if you were explaining them to a 4th grader.

2.  Start out your conversation with something like this:  “Now the real estate/mortgage business tends to use alot of nicknames and fancy terms for things, so if I say anything at all that you don’t understand, please stop me and I’ll make sure you get it, OK?  I want to make sure that you are totally comfortable with the whole process.  There’s no such thing as a stupid question.  If you’re thinking it, I want to make sure you’re concerns get answered. (wow, wouldn’t the vet have made me feel better with that right off the bat?)

Watch next week as I give you a list of “no-no” words and some suggestions for replacements for them.
See ‘ya next week!

Andy

Andy’s Superbowl XLII Wrap Up Lesson

Posted: Monday, February 4th, 2008
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Did you watch the Superbowl last night?  Millions of people did.  Some to watch the game, and others just to watch the ads.  Count me in the second group.

But how many tuned in to learn a life lesson, or more specifically, a real estate lesson?  What?  Nobody!  Wow!  Well, since I figure most people missed it, I’ll give you the post-game summary.

Right before the two teams ran onto the field, they did a little look back at the road that had brought them there, and for each team, they gave a single word that described the team.  They defined the word, and then had various members of the team narrating the story.  As I watched them, what they were saying really hit me like a ton of bricks, so I want to share them with you.

First was the New York Giants:

(announcer)  “The NFC Champion Giants’ road to the Superbowl was a true test of their character.  Their rise was unexpected by many, but not to their players.”

(Giants players taking turns narrating)

“Re-sil-ien-cy.  The ability to recover from or adjust easily to misfortune or change.

We started 0 & 2, then ripped off 6 straight.  We had teammates go down & we never lost a beat.  Some of you doubted us, tried to run us out of town, yet we never lost our focus OR our faith.  You can knock us down, but when it mattered the most, we, WE delivered the knockout blow.  Road Warriors.  Road Warrior.  Road Warriors.  We traveled the country, the world for that matter, & what did we do?  & what did we do?  We stomped opponents out, ten straight times.  Road Warriors.  Resiliency.  The ability to bounce back.  We have faced this challenge before.  Do you dare count us out again?  We are resilient.  We are…  We are… We are… the New York Giants.”

Whew!  I was blown away by this.   If it didn’t sink in yet… read it again, but think about the real estate market as you do.  Our industry has had some BIG teammates go down, the media and the general public definitely doubt us and many have counted our market out.  They’ve definitely tried to knock us down.  But right now is when it matters.  Not yesterday.  Right now.  We’ve faced this challenge before, and those that are resilient and can recover from and adjust to the market changes, will come out on top… as Champions!

…do you dare count us out again?  We are resilient.  We are… We are… We are… the Real Estate Professionals!

Just when I thought it couldn’t get any better, it was time to bring the New England Patriots onto the field:

(announcer)  “The AFC Champion Patriots carry a perfect 18 & 0 record into Superbowl 42.  the true essence of this team can be summed up in one word:”

(Patriots players taking turns narrating)

“Team-Work.  The cooperative effort by the members of a group to achieve a common goal.  Team-Work.  Team Work.  Team Work.  Has defined us all season long.  We added some new faces but the chemistry was instant.  The bond of this group can never be questioned.  Never be broken.  Records fell.  Records are meant to be broken.  But that’s not what this group, this team, is all about.  We are about winning & that’s what we did.  18 straight times.  It wasn’t always easy.  We were challenged.  And always persevered.  But it’s no over.  There is one final challenge & it will be met.  & it will be met.  It will be met.  With teamwork.  Because WE, we are…the New England Patriots.”

Pretty heavy for a bunch of football players, eh?  Did you spot the lesson there?  To win, we will need to be a team.  We all need to work together.  Whether it’s teaming up to send emails to our Congress, or working together to do what’s best for the client, even if it means making less money, or making sure a rookie in your office has a mentor like you did when you first got started.  There are a lot of clichés about teamwork, and I don’t think I need to bore you with them, do here’s my parting thoughts for today…

The real estate industry IS like a football game.  Some will get hurt, some will score.  Some will win, some will lose.  Many people are watching from the sidelines to see what happens, but are afraid to “get in the game” themselves.  No one person can win the game alone, it takes a team.  And even when you’re down, don’t give up… the score can turn quickly if you just persevere.  Oh, and chose a coach that will stand by you, even when you’re losing, because that’s when you need them most.

See you next week,

Your “coach”

Andy

P.S.  The “underdog” Giants won the game, 17-14.  Now THAT’S resiliency!

Another Victim of Foreclosure…the Family Pets

Posted: Friday, February 1st, 2008
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Being right here in Central Florida, I am in the heart of the #2 Foreclosure Market in the entire country. Every day I see the horrors that this is causing in families, jobs, finances, and attitudes. But there are victims we may not notice, because they can’t speak up for themselves…the family pets.

Across the country, shelters are being overrun with what they are now calling “foreclosure pets” including dogs, cats, and even horses. I personally have gone to review vacated houses and have found a dog tied in the backyard, or even the remains of a cat in the laundry room. I know that to some, their pets may be the last thing on their mind, but there are a few things you can do to give them a fighting chance at survival.

First, don’t leave them locked up in the house, garage, barn, shed, or backyard. Taking them to the shelter may seem cruel, but it is much better than slowly starving to death.

Second, take steps to be able to bring the pet with you to your next home. Many landlords will accept pets, you may just need to call around a little to find one. The sooner you start looking, the better chance of finding an acceptable solution.

The Humane Society of the United States has a wonderful article and checklist to help people in foreclosure cope with their pet decisions. It may even be a good idea to print it out and provide it to clients facing foreclosure. You can access the article by clicking here.

Taking your pets with you will help you settle into your new house or apartment quicker and get your mind back on the future instead of what you’ve just lost…they don’t care if you own or rent, just that you pet them and give them love.

Watcha Watchin? Andy Interviews an Attorney

Posted: Wednesday, January 30th, 2008
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Those of you that are participating in my “Every Question You Ever Had About Foreclosures, Short Sales and REO’s” Training series already know, but this is for the rest of you…

Last week I interviewed a local attorney, Chuck Castellon, about the legal side of the foreclosure process and how agents and homeowners need to act to protect themselves.  We discussed several interesting things, but I wanted to share some of the key points with you:

1.  I told him that agents are telling me that their clients are being advised by attorneys to NOT do a short sale and that letting it go to auction.  Neither of us could brainstorm a single instance where that would be true, so if you have a client that has gotten this advice, ask them if it was a real estate attorney, then either way, suggest they get a second opinion.

2.  He has not personally seen a case where the real estate agents were cut out of commission totally.  Lenders realize that’s a cost of doing business.  Maybe that’s an urban myth.

3.  Bankruptcy does not cure foreclosure.  It only delays a few months.  The lender can go to the courts and ask to have their foreclosure set out of the bankruptcy process and continue their foreclosure.

4.  The sooner a homeowner in trouble starts to work on the problem, the better it will be in the long run.

There’s just a little taste and some tips for you!
 

Andy’s 5-Spoke Real Estate & Economic Stimulus Plan

Posted: Monday, January 28th, 2008
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Lately there’s been a lot of talk about the “Economic Stimulus” Plan in Washington. Today I’ve decided to lay out MY Real Estate & Economic Stimulus Plan and share it with you.  Please remember, big problems call for big solutions, so some of these are very controversial and may knock your socks off, but after you get past the initial shock, I think you’ll see that they just might work.  And if you have a direct link to Washington, I would be happy to meet with them to straighten out our economy my way.

Ready? Are You Sitting Down?  Good…

Spoke #1:  Lenders should immediately make all loans either in default, danger of default, or negative equity positions assumable without qualifying.  This would allow people that really want to own a home get in despite a market that is getting tougher for folks with credit issues.  Lenders are closely scrutinized about their percentage of defaulted loans, this would lower their default rate, which in turn would make both their shareholders and the Feds happier about their situation.

What’s the worst that could happen?  They give a new borrower a chance and sometime in the future they are not able to make the payments either.  The bank is no worse off than they would have been if they had foreclosed the first time around.  I would argue that fewer than 10% of these people will default, so that means the lender turned 90% of their at risk and defaulted loans into performing loans with good payment histories.  Sounds like a good financial decision to me!

By the way, folks with bad credit WILL pay more than retail to buy something…they’ve proven it over and over again with buy-here-pay-here cars and rent-to-own appliances where they are paying 25-50% over retail when you consider the finance charges.  In the case of real estate, they may be paying a little over retail price, but they are taking over payments and interest rates that are probably much better than they would personally qualify for right now.

Spoke #2:  An immediate ban of all media channels from discussing anything to do with real estate.  As soon as they stop all of the doom-and-gloom about our market, America will realize that our economy and our real estate market just aren’t as bad as everyone keeps saying.  We just need a little space to give CPR and our market will take a deep breath and come back to life!

By the way, I would also make it a 1st degree felony to say the words “if you just wait a few months it will be cheaper” in any way referring to real property.

Spoke #3:  Lenders need to get realistic about what they will get from a foreclosure proceeding.  I am getting annoyed at seeing short sale deals turned down only to see the lender list the property a month later as an REO at a much lower price than they turned down!  I would put all lender’s in line right behind the Tin Man to get a heart, and then follow Scarecrow to get a brain.  Maybe then they’d realize that if they have a borrower that truly wants to stay in their home, reducing their payment a few hundred a month will actually net them MORE money than a foreclosure both in the short and long runs.  I think that someone in the house paying something is better than nobody in the house paying nothing.

I just hung up the phone with a homeowner that has been trying to workout a payment plan with her lender for several months.  Nobody will even talk to her, even though she is now able to pay her payments AND has some of the back payments she can send them right now.  How is the bank helping anyone, including themselves, by not at least trying to work something out.

And to 2nd mortgage holders…You’re Not Getting Anything!  Let The Sale Close!  You Knew The Risks When You Made The Loan!

Spoke #4:  Every Real Estate Agents will buy 1 house in the next 30 days. (I warned you to sit down before reading this!)  No, Really!  As I travel around Florida talking to agents, they all tell me that they do honestly believe that right now is an amazing time to buy and invest in real estate, except they are afraid to do so themselves!  How are you supposed to instill confidence in your clients when you don’t have any yourself?

Let’s look at how this would help our economy:  From what I can gather, most areas have 2-3 listings for every agent.  For example, in Orlando there are around 24,000 listings and about 12,000 members of the association.  If each of them bought one house in the next 30 days, here’s what would happen:

-Mortgage brokers, title companies, and other ancillary services would get a rush of business, maybe even having to add some staff!
-With all of this new money, they will go buy things for their business and their employees will regain confidence and they will go buy things for their families.
-Retail and Service sectors of our economy would pick up, and THEY would all start to spend money again.
-The “regular” citizens would see that there was a huge rush on the real estate market and everyone that was on the fence about buying would realize that they’re about to miss their chance at a bargain…Oh No! It’s time to buy!
-Our supply of housing would be cut in half and that would bring us back closer to a normal balance of supply and demand and would stabilize our market on a long-term basis.

What? How will you pay for it?  You’ll be getting so many closings from the boost in the economy that that little teeny mortgage payment each month will be pocket change!

Ok, if you’ve picked yourself up off the floor and realize that Spokes #1-4 might actually work, then you’re going to love

Spoke #5  Put Andy Tolbert (or someone like her) as Secretary of Housing and Urban Development.  We keep putting people with no understanding of the single family home market and it’s backing into a position where they make decisions that have an impact on the single family home market.  It’s time that we put someone in a position to do a good job, and for no other reason. 

Actually, I have no desire to move to D.C.  However, I believe that every American should make sacrifices for their Country, so when they move our Nation’s Capital to the Florida Keys, I will gladly relocate and serve my duty as the HUD Secretary.

See Ya Next Week!

Watcha Watchin’ : Is on Hiatus for One Week

Posted: Wednesday, January 23rd, 2008
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Because as I packed a bunch of amazing CD’s to listen to on the 6-7 hour drive down to the Keys (and back) including some on sales techniques (Tom Hopkins) and some on raising capital for your investments, about 10 minutes into the trip, our CD player in the truck started acting up, and we can’t eject any of the 6 cd’s in there OR listen to any of them!  So we had to “radio surf” the whole way.

But we made it fun by trying to guess the artist of all the “oldies” like Hall & Oates, Sheena Easton, Dire Straits, and more, and the one’s we didn’t know, I looked up on my “internet connected smart phone” (remember last weeks tech tip?)  so like usual, we made the most of it!

Andy’s Tech Corner

Posted: Monday, January 21st, 2008
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I’ve gotten such amazing response to the last 2 weeks’ “Technologies that Every Agent Should be Using” that I’ve decided to make it a feature in this e-zine.

This will NOT be every week, because I don’t have that much time on my hands to research all of those new gadgets, but as I find things that I think you might like to know about, I will certainly share them with you here! 

AND, if you know of any good ones, please email them to me to research and possibly share with everyone!

Again, thanks for all the great feedback you’ve sent on this topic!

Here’s today’s “tech tip” for ‘ya:

Last year, at one of the Money Buffet courses I gave, everyone fell in love with the financial calculator Tim & I were using because of how simple it is to use.  Well, I contacted the manufacturer and I am now an authorized reseller for them.  We have at least one of each style in stock, and when we hold live events, we will always have some with us, so you don’t even have to pay for shipping!  Before I give you the link to look at them, I’ll tell you my 2 favorites: 

The 43430 which is a BIG Desktop with big buttons (like an old-fashioned adding machine) and it also does commercial calculations.  The other is the 3400 which is the teeniest I’ve ever seen, and it ONLY does the every day functions, no other confusing buttons.  small enough for your pocket, and only $30!

Here’s the link to take a look!

http://www.andytolbert.com/home/store/
 

10 Time Saving Technologies That Every Real Estate Agent Should Be Using…Part 2!

Posted: Tuesday, January 15th, 2008
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I got great feedback from last week’s Part 1, both from people already using some of the technologies as well as some who have already tried some after my “tip” and they love them!

Here’s a few more that you might want to consider, but I also want you to keep this in mind… don’t add “new” things just for the sake of adding new things.  If these technologies seem like that might solve a problem or fill a void in your business, then by all means try them, but if you’ve already got systems in place for these things and they’re working for you…stick with what you’ve got!

BeAnywhere.com - I actually just found this one a few weeks ago, and it seems to be exactly what I needed.  I have a TON of files on my network computer at the office, including phone numbers, marketing pieces, contract addendums, and my email archives, but you’ve got to be sitting at your computer to access them.  Not Anymore!  With BeAnywhere, I just loaded a simple program onto my office computer and now I can access MY DESKTOP from any other computer!  It’s cool, I can be sitting at home at my dining room table actually working ON my desktop (if you were sitting at my desk while I was working remotely, you’d actually see the mouse moving around!)  you can also transfer files back and forth, and you can allow another user to “log in” to your computer to watch you work (or help fix something!).  It’s all password protected, so not just anyone can get in.  They give you a 30 day free trial on up to 3 computers, and after that it’s just $9.95 per month or $49.95 for a whole year.

 
ConstantContact.com - This is the the service I use for this weekly tips every week.  You just put your customers in the database (or they can be imported in as you get new ones) plus they can be put into whatever “group” you decide to dream up (customers, family, past clients, prospects, sellers, farm area, etc.).  Did you have a good turnout at an open house?  You can put all those names into a group named Open House 1.23.08 and email to them as you need.  It is very user friendly and you can chose from ton’s of different templates including cards, coupons, holiday messages, newsletters, press releases, and more.  And you can put in photos, links, surveys, and much more.  They offer a 60 day free trial, and service starts at $15 per month.

 
Igonet - You’ve heard of VOIP (Voice over Internet) which is an affordable and easy-to-use broadband telephone service. It allows anyone with broadband (high-speed) Internet access to use their regular phone to place calls anywhere in the world! How does it work - using digital technology, IGONET routes your calls over your high-speed Internet connection using a small service adapter, instead of the traditional landline telephone network.  Here’s some of the ways we use this in our office: 1) Listen to your messages directly from your computer as they are emailed to you   2) take your little router box home or on the road with you…anywhere you have high speed (like a hotel room!) you have free phone service (even internationally)  3) forward calls when you’re not at the office   4)find me/follow me that will ring different numbers if you don’t answer the first one  and 5) get phone numbers in different areas for only a few dollars more (for example, if you have a property for sale in another area code, you could get a “local” number to advertise there that will ring back to you.

Sometimes you get a bad connection and have to hang up and try again, but hey, so does my landline!  Service starts at just $24 per month for unlimited local AND long distance, and you can add plans for international and toll free calling.  for more info, go to:  www.Igonet.biz/rei123
 
Smart Phone with internet access
Honestly, I don’t know how you can conduct business anymore without this.  My Treo holds all of my contact info, my address book, my calendar, I can email and receive email on it, I can synch it up to talk to my computer and share info, I can take and send pictures, I can surf websites, get directions to a house, and so much more (and I don’t even have the MLS on mine…maybe I should!)  Picture this… A client calls and needs a referral to a termite company…you look in your phone and give them the number, then you email the pest control company that your referral will be calling and to treat them well.  Then you map how to get to your listing appointment’s office…when you get there, they’re still tied up in a meeting, so you check your email and respond to 2 buyer inquiries.  Then you play a quick game of solitaire or sudoku while youre waiting, but it sure LOOKS like you’re working! (don’t smile too much, they’ll figure it out).  While with the client, you make notes in your “client” file of what their goals are, and when you get back to the office you download all of that into your Outlook folder.  Then you run to your son’s baseball game, where you take a picture of him and his trophy and email it to all your family.  Then you look up the closest ice cream shop on your smart phone and take the whole gang to celebrate.

Wow!  If you’re business and life aren’t quite that simple, maybe you should look into a smart phone!

JingProject.com - this is a great (and for now free) tool if you need to send someone a “snapshot” of your computer screen or a video of your computer and mouse actions.  For example, you could make a quick tutorial showing your website visitors how to maneuver around your listings.  This is somehow linked to the company that makes Camtasia, an expensive software that does the same functions (that I spent a lot of money on!)  This one’s not for everyone…but if you have a need for this, free is good!

Ok, there’s 5 more for you.  I’ve also gotten some suggestions for new ones from some of you, so keep ‘em coming… I’ll share more with you in upcoming issues.

…And in 2008, Andy did her first and last 1/2 Marathon endurance event…

Posted: Tuesday, January 15th, 2008
1 Comment

If I were to write my own eulogy right now, it would contain those words. But maybe it’s like every time I visit Australia and swear I’ll never sit on that long flight again, and then I have so much fun that I forget the flight part and go back again. Maybe…we’ll see! (actually, I think I’ve found my next event…check out www.MuddyBuddy.com!)

Thank you to everyone that supported me, both with a financial donation and with the numerous emails of support I’ve gotten over the last several months leading up to this. I wanted to share a short recap of the event with you…

I finished in 3 hours, 36 minutes and 35 seconds, and completed 13.1 miles!
(actually, I figure closer to 16 miles with all of the shuffling and lining up, and you know Disney, you don’t park close!)

The blisters started around mile 4 (I never got blisters in training!)
The hip started bugging me around mile 7-ish
My left foot cramped around mile 8
None of these things went away.

And since you know I’m into “stats” here’s some I thought were interesting:
- there were 16,000 registrations for the 1/2 marathon and 18,000 for the full, a sold out event. There were also around 3,000 that did BOTH events, called the Goofy Challenge.
- Meers had 523 buses on site to transport us
- there were 777 porta potties
- to get rid of the 88,000 gallons of water served in 840,000 cups
- 12,288 people finished the 1/2 marathon (I came in 12,157th!)
- on Friday they served us 800 pounds of pasta to “carb up”

And specifically some Leukemia & Lymphoma Society/Team in Training Stats:
- We had 1,880 participants
- As a whole we raised $5.6 MILLION !!!
- The Central Florida Chapter raised $575,000 !
- The top fundraising participant raised over $29,000 all by himself

One of the things that I absolutely was blown away by was the support of not only the Team in Training coaches and mentors, but by every participant and spectator involved…you didn’t have to wait very long to hear a “keep it up” a “you can do it” or a “great job” (or my favorite: “go purple people” for the TNT purple shirts!) I realized a lot about the power of positive peer support and the role of a mentor/coach (Thank you Carrie! I don’t know if I could have finished without you there!). Everyone said it was 10% physical and 90% mental, but I didn’t believe it until I started crying when I saw Tim at the first spectator area (yes, he go pictures of it!) and then around mile 12 we saw 2 ladies try to “short cut” and sneak accross an area to get up ahead, Carrie and I talked them out of it, and at that second a whole ton of things raced through my head…”how can you get this far and cheat?”, “wow, they would have NEVER known if they could have really done it or not” and then I remembered my Dad (who passed away when I was 11) who would never let me quit or give up…he would make me keep trying something until I got it (except the time my horse threw me and I needed stitches…then he let me quit FOR THE DAY while I went to the doctor). I now see that same power in Tim, who has made me one of the BEST darn jeep offroad drivers (male OR female) in Florida because he never lets an obstacle get the best of me…we keep trying until I make it (actually, I usually make them on the first try now)

Anyways, it really sunk in what my role is in YOUR life and business, and as a result, I pledge to not let YOU down, and to not let you quit, even when just taking one more small step seems like it will be absolutely impossible. I tried not to think of 13.1 miles, instead we celebrated EVERY mile marker as reaching a seemingly impossible goal and then set a new goal to reach the next mile marker. That made it so much easier to believe in (I mean come on…I KNOW I can walk one mile!). By the way, they also have a wheelchair division, and at the finish line of the FULL 26.2 mile marathon, I watched an elderly gentleman with a leg-brace and crutches cross the finish line…kind of makes my little blisters seem not so significant after all.

So to wrap it up…instead of dwelling on what’s wrong with your life, health, business, real estate market, and on and on… in 2008 let’s focus on what’s good! Every day, find 5 things that make you happy or feel good, and celebrate them…it’s