There’s always something to howl about.

Author: Brian Brady (page 10 of 27)

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

Stimulating Ideas

I’m just spitballing here but I think two simple (and temporary) actions could stimulate the economy and save the auto industry:

1-Suspend the payroll tax for a period of time. (not my idea but I like it)

2- allow a one-time, tax and penalty-free withdrawal, up to $25,000, from 401-k plans, for the purchase of a new vehicle , until December 31, 2009 (my crazy idea)

COMMENTARY: The payroll tax supports a bankrupt system; social security.  The faster we all accept that fact, the better.  Let’s take what’s left in the plan, commit the balance to everyone over 60, and stop the insanity.  Most anyone under 45 hasn’t expected to receive social security entitlements for ten years, now.

Allowing a one-time 401-k plan withdrawal will certainly “mortgage our future” but we’re doing that already.  The Industrious Eileens will invest in the automakers (through their 401-k)  and the Spendthrifty Sams will jump at the chance to buy a new car.  At least the individuals will be deciding what to do with THEIR money.

Do Loan Originators “See” The Opportunity?

If you thought REALTORs were behind the learning curve in Web 2.0, you should see the lenders

If you’re a loan originator, reading this article, congratulations.  There are some 300,000 working loan originators today and I’m guessing that about 1% of us are actively using social media.  Certainly, the REALTORs are way ahead of us but even they have room for growth.  If the participatory web is the future of commercial communication, this gives loan originators a tremendous opportunity to “stop buying donuts” and start teaching the close to 900,000 real estate agents, who don’t get it, how to succeed.

Remember when you started in the business?  The most successful loan originator told you to “beat the streets and talk to agents”.  Today, beating the streets requires nimble fingers rather than worn-out shoe leather because…

YOU CAN BRING VALUE TO THE AGENTS FROM YOUR COMPUTER

Here’s the idea; teach the unwired agents how to get connected.  They’ll love you for it.  In the past four months, I’ve:

If I market to 100 real estate agents, consistently, I close 100 purchase loans annually.  In California, that’s a pretty good living (even after I pay out my team members).  See where I’m going with this?

TEACH THE UNWIRED AGENTS HOW TO GET CONNECTED– They’ll love you for it.

What’s the matter?  You don’t feel confident enough to instruct the unwired agents about how to use social media?  Forget the folks here; they get it.  Certainly you’ll want to establish and nourish relationships here but the REAL opportunity lies in the other 90%- the unwired agents.  You already know more than they do…BUT…

I’ll tell you how to learn even MORE so that you’re potent; an expert of sorts.

Come to the BloodhoundBlog Unchained University of Online Marketing, in Phoenix, at the end of April:

Who should come to BloodhoundBlog Unchained in Phoenix? If it’s part of your job Read more

Sorry Europe. Our President Might Just “Cowboy Up”

Bank of America is getting slaughtered by short sellers.  The stock has plummeted to under 10% of its March, 2008 value.  Of course, a few things happened on the way to the slaughterhouse:

  • The bought Countrywide, America’s largest mortgage originator.
  • They bought Merrill Lynch, America’s largest retail securities firm.

Ken Lewis took on a lot of crap on the road to ubiquity.  2009 promises to be more bad news for the financial supermarket as  Countrywide option ARMs and  subprime loans, originated in 2007 by Merrill Lynch unit First Franklin, become wallpaper.

Comrades Obama and Geithner will surely nationalize the Company, to better reflect its name, right?

“Not so fast” says Jason Schwartz of Seeking Alpha.  Just because Obama admitted to sharing his toys in Kindergarten, that doesn’t necessarily make him a died-in-the-wool Marxist.  Schwartz chalks the whole thing up to wishful thinking by our European cousins:

The market is running wild on some hyped up article written in the Financial Times that claims Obama is considering nationalizing the banks. If you actually read the article you’ll notice the anti-American sentiment at the very beginning when they say that ‘nationalization has long been regarded in the U.S. as a folly of Europeans…’ Ok, I get it, Europe has been right all along. Whatever. Obama’s true feelings on nationalization came out in his ABC interview after Geither’s banking speech when he laughed out loud and said, “Sweden had like five banks. We’ve got thousands of banks…managing and overseeing anything of that scale…wouldn’t make sense. And we also have different traditions in this country.”

Source documents suggest that Schwartz might be as credible as our resident “tin foil hat” theorist:

Long regarded in the US as a folly of Europeans, nationalisation is gaining rapid acceptance among Washington opinion-formers – and not just with Alan Greenspan, former Federal Reserve chairman. Perhaps stranger still, many of those talking about nationalising banks are Republicans.

Lindsey Graham, the Republican senator for South Carolina, says that many of his colleagues, including John McCain, the defeated presidential candidate, agree with his view that nationalisation of some banks should be “on the table”.

“Nationalisation” sounds a whole lot more “civilized” than Read more

Referral Prospecting The Facebook Way

Are you feeding the funnel?

If you’ve ever seen Greg Swann and I do our push/pull routine, you’ll watch a “somewhat scripted” debate between Slimo, the really pushy sales guy on the internet (played by me) and Webbie, the kind-hearted, unwilling to offend practitioner (played by Greg).  It’s a twenty-minute gig that lasts about ten minutes.  At midpoint, someone raises his/her hand and asks “Isn’t it a balance between the two ?”.  Jim Lee, of the Cyberprofessionals, was the smartest kid in our last class.  Obviously, Greg and I are playing roles to get the audience to the epiphany Jim Lee had.

Use the visual of the funnel because internet marketers are always talking about it.  The funnel is a disqualifying machine, always trying to get people to “raise their hand” , each time information is offered.  If they don’t raise their hand, they opt-out or ignore you.  Traditionally used in serial e-mail marketing, its efficacy is diminishing and consumers tolerate less “spam”.  What’s a Slimo to do, then?

Adopt an approach that allows them to “opt-in”, daily.  Social networking is one way to do that.

In this webinar, offered by Top of Mind Networks ( TOM President Mark Green is attending BloodhoundBlog Unchained), I discuss how to use “old skool” principles of referral prospecting on Facebook, the mid-sized nation of 175 million people.  What you’ll be watching is a raw recording which will eventually become part of a course in social media marketing, offered by BloodhoundBlog Unchained.  It’s about an hour long.

I’d love your feedback. Victoria Del Frate, of I Can Coaching, offers hers with:  Meat-n-Potatoes of Social Networking

DISCLOSURE: I am a paying client of Top of Mind Networks’ “Surefire” product.  Mark Green is a fully-paid, registered attendee for BloodhoundBlog Unchained.  I was not compensated for the webinar.

The webinar is linked below in both audio and video formats.  The video requires Windows Media Play and the GoToMeeting codec.

This Unchained Seattle Lender Built A Huge Following, By Quoting Rates

Rhonda Porter, of Mortgage Master Service Corp. in Seattle, is speaking at BloodhoundBlog Unchained Seattle, on February 12, 2009.  BloodhoundBlog readers see Rhonda commenting here and Rain City Guide readers know her as the resident mortgage guru.  I know her to be one of the most savvy Loan2.0 practitioners; that’s why I chased her to speak at Unchained Seattle.

I interviewed Rhonda about what she does that WORKS, not what she does that’s cute.  At BloodhoundBlog Unchained we talk about things that are as practical as a jackhammer on a construction site.  When you hear Rhonda, you’ll learn that she ‘s a lunch-pail carrying, hard-hatted foreman, building relationships through her social media efforts.

Listen to my fifteen minute discussion, with Rhonda, here.

If you haven’t reserved your spot for Unchained Seattle, you just might be shut out.  Over 75 people have raised their hands and seats are going quickly.  Contact Scott Cowan if you’d like to see us on February 12.

The fun doesn’t end after BloodhoundBlog Unchained Seattle!  We jumped on the chance to be a sponsor of Seattle REBarCamp, the next day.  Todd Carpenter describes the ad-hocratic learning experience that is REBarCamp:

RE Bar Camp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos, and interaction from attendees

BloodhoundBlogUnchained is proud to be a sponsor of this effort in the Emerald City.  Greg and I will be there to join in all the fun!

David Bartels Redefines Mortgage Originators as “Borrower Advocates”

I had fun today because  I got to hang out with a bunch of mortgage salespeople.  I drove up the 5 to Irvine, epicenter of the sub-prime mortgage industry, to see the High Performance Strategies Seminar, hosted by David Bartels and Greg Frost.  David Bartels is an executive with Loan MagicGreg Frost is America’s first billion dollar originator.  The cool part about their accomplishments  is that they do the right thing.  Both are highly-principled salespeople who hustle.

David impressed me with his definition of our job as a “borrower’s advocate”.  He suggested that we would do well to align ourselves squarely with the borrowers.  While he never suggested that our lender partners are the enemies, his message was quite clear.  Originators need to help borrowers FIRST.  Banks are so puckered today that borrowers need a guide to help them interpret loan offerings, argue their case for approval, and secure the best terms possible.  When mortgage brokers fully embrace that concept, we will have earned the public’s trust.  Here’s David on Mortgage Sales Blog:

For some reason, originators get offended when a potential client wants to know detailed information about the terms of their new loan prior to completing a full application.

The mortgage rate question is a buying sign, not a shopping sign.

They ask about rates because all of the advertising in the news and media leads borrowers to believe that mortgage rates are a consistent means of measuring one broker or banker over another.

In reality, most borrowers have more important criteria for selecting a loan officer to do business with, like whether or not they can trust you.

The rate question is basically a qualifier. They’re not shopping rates, they are shopping you. It gives the borrower some insight into you level of transparency and ability to communicate on their terms.

How you answer the rate question will ultimately determine your success or failure at earning a borrower’s business.

Think about it, if a potential client is willing to speak with you about rates, then they are obviously interested in opening a dialogue about how your mortgage options will impact their financial goals.

What would Read more

BloodhoundBlog Radio: About Success With Jason Blackburn

Jason Blackburn of Laser Focus For Life was our guest on BloodhoundBlog Radio last week.  I “met” Jason on Facebook two months ago, when preparing for the “Power Of Twelve” seminar.  Jason wrote a referral script for my seminar and asked nothing in return.  That connection led to a number of telephone calls which made me realize that Jason had a lot to offer.

Jason points out that many of our actions are incongruent with our mission.  He explains that our actions need to be inspired by the “buy-in” from both our hearts and our minds.  Jason is not a “touchy-feely” success trainer. He’s a nuts and bolts sales pro with over twenty years experience.

I expect we’ll be hearing a lot from Jason.  You can hear our 40-minute interview with him here.

PS:  If you click only one link, click “referral script“.  Jason lays out a simple way to generate referral business in about 800 words.

Shopping For Greenwood, IN Real Estate? iShopGreenwood.com Is a Real Estate Mall

If you’re looking for Greenwood, IN homes for sale, what better place than a real estate “mall”?  It’s the PERFECT idea but there’s one problem; I hate malls.  I’m not an agoraphobiac but  I AM a gun-totin’ American male.  On Saturdays, I park the pick-up at the Mall and sneak into the Sports Bar while Mama Bear and Girl Cub go bargain-hunting.   A blog that looks like a mall makes me crave Buffalo wings and onion rings; call it a Pavlovian response.

Who cares? Greg Swann always jokes that ” Mama buys homes and Dad sells them” so Shawna may have created something very powerful with her blog design.   Think about your last ten buyers.  Mama was measuring, dreaming, and creating while Dad was crunching numbers with the local mortgage broker.   Let Dad read the pin-striped mortgage blog, Mama’s gonna dig the pastels (and mall-themed layout) of this real estate blog.

I concur with Greg Swann. Shawna has content…lots of GOOD content.  I love the “closed listings” and “client testimonies” categories- that is very smart marketing.  The numbers appeal to a clients’ desire for performance and the pictures, with the testimonials, provide social proof.  We talk about the fact that a potential client is looking for a reason to DIS-qualify you when searching online; I can’t find a reason to do that with Shawna.  Her site’s content sells me on every point.  Shawna appears to be a VERY busy and competent REALTOR which is exactly what I’d want.

How can Shawna promote this site so that it is a must-see for every potential Indy homebuyer?

The URL is great because it plays upon two themes:  the hip “i-” theme, made popular by Apple and the keywords are easy to remember while being Googlicious.  I’d take to the offline trenches to promote this site with Greg’s tiny little workhorse; the business card.  I think I’d want a stack of those cards in every hair salon, speciality store, and place where women visit.

Would T-shirts be a good idea?  I’m thinking ‘What Would Sarah Palin Wear?’ when designing the T-shirt line.  When I asked Mama Bear if she’d Read more

Mortgages Under Management

“Managing loans” is the tail that wags the dog today.  When I was a rookie stockbroker, the good folks at Mother Merrill taught us to “gather assets”.  Essentially, the firm encouraged us to pitch clients to have their assets transferred to a Merrill Lynch account.  The strategy was that assets “in-house” would result in a commission when they had to be sold.

Is it any wonder that the mortgage sales gurus who brought that strategy to the mortgage business were former stockbrokers?  Rich Katz, former President of Loan Toolbox, spent his early career with both Merrill Lynch and Smith Barney.  Dave Savage of Mortgage Coach perfected that strategy with his software offering.  Todd Ballenger developed a business model that partnered with financial planners; it’s cornerstone was actively managing mortgages for customers.

Simply put, a new mortgage originator could track current homeowners’ mortgages, by rate (and/or term).  The lowest-tech system would be in file folders, indexed by note rate.  Vendors like Mortgage Coach, Top of Mind, and MyLoanBiz.com offer automated solutions to managing mortgages.  Whether you spend the money for automation or not, “managing mortgages” can be fruitful, especially in a low mortgage rate environment like today.

Greg Frost of LoanToolbox tells us that “first in wins”.  When a dramatic move in rates occurs, the first originator to call the homeowner with an attractive loan solution usually has the best chance of earning the new loan business.  Regardless of rate movements, approximately 9% of all loans outstanding are refinanced each year.  Another 11% of all loans outstanding are paid off due to sales.  This means that one out of five loans will be retired (and new loans will replace them) annually.  A mortgage originator who wants to close 100 loans each year would do well to “gather” data for at least 500 homeowners then.

The strategy works whether you use a computer or a drawer-full of files. Here are some real life examples from practicing originators:

Dan Green talking to Dave Savage about how he used this strategy to excel in a down market.

Khai McBride discusses his quarterly credit review for clients

Jim Sahnger talks about how to Read more

Bloodhounds In The Emerald City

RE BarCamp Seattle has a time and a date.  From Todd Carpenter:

Rich Jacobson and Brad Andersohn from Active Rain, along with Drew Meyers from Zillow have established the basics. A date and venue. February 13 at Zillow Headquarters.  This happens to follow a Bloodhound Unchained preview event held the day before, also at Zillow headquarters, and also free!

Greg and I are pretty stoked about heading to the Emerald City.   Scott Cowan signed up for Bloodhound Unchained Phoenix ‘O8 but had to decline participation to tend to familial duties.  Since then,  Scott’s been lobbying us to head up to Seattle to out on our “Mini-Unchained Event” for Coffee Bean Town.  Last month, I told him we’d gladly come if he could round up a venue and a group of eager people.  Scott called the folks at Zillow and we arranged to be a prequel to Seattle RE BarCamp.

Our event will be from 1PM until 5:30 PM, on Thursday, February 12, 2008, at the Zillow Headquarters. We’ll be talking about Direct Marketing (online and offline), Social Media Marketing, and Blogging.  David Gibbons and Rich Jacobson agreed to speak, as well.  Marlow Harris raised her hand to attend but I’m hopeful to have her to speak.

Our concluding session will be a debate between Glenn Kelman of Redfin.com and Greg Swann.  They’ll be discussing Glenn’s thoughts about whether size really matters.  Glenn outlines the case for why the little guy might get squashed:

This is a change. Marketing, which used to be the large brokers’s primary advantage, is actually getting cheaper — if Bloodhound has proved anything, it’s that the web has made marketing a question of what you have to say not how much you have to spend.

But the cost of running a real estate search site is rising fast. Large brokers throw money (if not always expertise) at the problem, while small brokers struggle to compete. The small brokers ask MLSs to provide a common set of services, like listing alerts, but the large brokers sometimes block these efforts as being beyond the MLSs’ charter.

Greg Swann thinks the little guy has the advantage:

I want Read more

What Is a Good Scent Trail ?

Kelley “Klik Kween” Koehler, instructing from the ARE-TEC blog:

Users like to see words describing their goal on a site, it helps them have more confidence that the thing they’re looking for is indeed there to be found. It’s called a scent trail.

Which means that if I create a page on my site just for people looking at townhomes, then I need to very carefully optimize for those kinds of words, and then I need to restate those words plainly on the page.

Kelley taught us about scent trails at Unchained Orlando.  She explained her “long-tail search engine marketing strategy” and how she makes it easy for online shoppers to find exactly what they want.  Kelley told us to build a landing page with the exact same phrase as the web surfer searched.  

I’m using my BloodhoundBlog.net weblog for these experiments.  Greg Swann suggested that I use it to post mortgage rates.  I built a page on the weblog, titled “Current Mortgage Rates Report”. “Current Mortgage Rates” is a keyword search phrase that a plethora of consumers search.  If I start a PPC campaign, I’ll play in that keyword search phrase.  “Current Mortgage Rates” is the scent trail I’m trying to build.

I want to build it with a long-copy sales letter, with no links other than a “Contact Me Now” link (call to action) throughout the landing page.  I want to have that landing page present the proposition, air out (and hopefully answer) all of the potential objections, and ultimately weed out anybody who doesn’t have interest.  My goal is to have clicks that are consumers who have “flopped” and want a mortgage right now.

BUT…as Kelley states, I have to “title” and theme the page with the keyword search phrase that EXACTLY matches what the consumer wants.  I have to make it as simple as possible for them.

Who’s implementing what Kelley taught us?  How are you doing it?

PS:  I changed the title of this post from “Give them What They Want” To “What Is  A Good Scent Trail ?” to reaffirm what Kelley says.  When you click the links on this post,  you get Read more

A 4.5% Mortgage In Every Pot

Embrace the New Deal!  The Bailout has made its way to Main Street.

The Fed’s gonna do it..for real:

The Federal Reserve on Tuesday announced that it expects to begin operations in early January under the previously announced program to purchase mortgage-backed securities (MBS) and that it has selected private investment managers to act as its agents in implementing the program.

Under the MBS purchase program, the Federal Reserve will purchase MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae; the program is being established to support the mortgage and housing markets and to foster improved conditions in financial markets more generally.

Here’s Sean Purcell and I, talking on BloodhoundBlog Radio, about today’s announcement (15 minute podcast)

PS:  Expect an orgy tomorrow and Friday, in the MBS markets….if the traders fly back from Cabo tonight

Social Media Webinar With Brian Brady & Jim Cronin

If you haven’t caught this message on the Real Estate Tomato, Jim Cronin and I will be hosting a social media webinar at 1PM (PST) – 2:30PM (PST), today:

Blogging ain’t enough if you want to put up big numbers on the scoreboard. I play this game to win so I’m all about scoring points.  Every day, I want to hit a grand slam, catch one in the end zone, score a hat trick, or hammer three-pointers.  I EXPECT to win, every single day, because of my social media strategy.

Five years ago, I started learning how to use social media to circumvent the pending “Do Not Call” legislation.  Since college, I always made my living on the telephone.  A typical day consisted of me rooting through my rolodex, with two-phones glued to each ear.   That damned “Do Not Call” list threatened my very existence

LinkedIn changed all that, in 2003.  I was invited to LinkedIn and found that I was the only mortgage guy in a roomful of well-earning tech folks, who owned homes.  Myspace came, in 2004.  I honed the rich demographic data to connect me with REALTORs by creating and promoting a group called MLS on Myspace.  Active Rain was a no brainer.  Facebook is the perfect combination to mix both consumer direct and professional referral platforms.

I’ll be walking, step-by-step, through the mechanics of :

1- setting up a profile on LinkedIn and Facebook

2- adding people you know to your sphere of influence on thos platforms

3- How to identify potential referral opportunities within your contacts’ contacts

4- How to engage the respective communities.

The webinar is free and has over 210 people registered.  There is room for 40 more.  If you can join us, register here.

Which is the most useful tool, on social media, to engage your audience and create offline conversations?

I asked this question on LinkedInScott Schang‘s answer rang my bell the loudest:

Social Media has introduced me to other professionals that has resulted in business relationships indirectly. Although I have completed transactions as the result of blog responses, that is not the norm.

I would say that I use Social Media primarily as an idea factory to stimulate my marketing juices and utilize technology and 2.0 tools for business promotion and sales tools.

I consistently utilize online webinars, youtube videos and constant contact which creates a perpetual cycle of automated action items that convert contact into clients.

My product is really education and expertise. Through my internet “presence” I am perceived (rightfully so I would hope) as an expert in my field. I think there’s also a familiarity you develop by being so easily accessible on SM sites.

I have also met many professionals like yourself that have helped me to grow and become more innovative and creative through these on-line relationships.

I have built working referral relationships with many other professionals and I believe that my social media reputation helps to facilitate these relationships.

Bloodhound Unchained in Phoenix last year was really the launching point for my confidence to take more chances with my commitment to social media and I realized that I was far from alone in my search for enlightenment.

Rhonda Porter impressed me with her proactive use of Twitter to “build” a community:

I would have to say Twitter. I have “on-the-fence” clients that follow me for rate quotes and eventually convert. Facebook is a close second as I’m reuniting w/old friends from school and their friends and so on…

Linda Davis and Teresa Boardman impressed me the most from the REALTORs because I discounted the use of of Flickr.  I already noted their comments here.  Here are their Flickr accounts:

Linda Davis on Flickr

Teresa Boardman on Flickr

Linda Davis and Kristal Kraft will be teaching at Unchained this April.  As an added bonus, here’s Kristal Kraft’s Flickr PhotoStream.  All of these ladies get a lot of comments on their pictures; I think that’s a bitchin’ way to connect with people.

Danilo Bogdanovic always blows me away with Read more