Author: Brian Brady (page 14 of 27)

by Brian Brady

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

Author website

I started the discussion about “generational” marketing with the controversial article:

The Youth Myth: Why It’s Hip To Be Square in Real Estate Brokerage

In that article, I discussed why the Baby Boomers represented an under-served market for high-tech real estate agents and lenders.  Fascinated by the responses, I started researching more and committed to a series about how to market online to this generation.  Greg Swann and I agreed that this will definitely be a session at Unchained Orlando.

The second part of the series is available on Home Gain Blog:

Baby Boomers Were Not Created Equally

Why did I take a detour to Home Gain? To throw up a big tent.

Here’s an excerpt:

The younger Baby Boomers, or Generation Jones, are a bit different from their older cousins. Born in 1955-1966 and children of “The Silent Generation”, they came of age in the late 70s and early 80s. They were promised a better world, became latch-key kids (from divorce or dual income families), and remember odd and even days at the pump. Live Aid defined this generation.

Barack and Michelle Obama are Jonesers as is Sean Hannity. Their big cultural shift was Carter to Reagan, pension plans to 401-k plans, and Pell Grants to student loans. They listened to KISS, Bruce Springsteen, Tom Petty, and The Beastie Boys; less idealistic, more individualistic. That music represents the feelings of this sub-generation’s view towards life.

The series will be back on BloodhoundBlog and I expect to have 4-5 more installments; we’re just taking a little detour today to invite more people to the party.

Marketing to Baby Boomers:

Part One: The Youth Myth: Why It’s Hip To Be Square in Real Estate Brokerage

Part Two: Baby Boomers Were Not Created Equally

by Brian Brady

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

Author website

You’re just back from Inman Connect?  Forget everything you heard there.  Chasing the hip, young 18-34 market is great if you’re selling sneakers but could be detrimental to the health of YOUR business for the next 7 years.  Here’s why:

Five reasons why you should avoid the 18-34 year old market for the next 7 years:

1- They ain’t got no money.

2- They don’t trust real estate as an investment.  This demographic believes that real estate is either perpetually overpriced or that it is dangerous.  Some eschewed the asset class, some leveraged it irresponsibly and lost.  It’s not that they don’t trust you because you’re a shady REALTOR, they don’t trust your product.

3- They view you as a functionary.  Your value hasn’t been established to them because they haven’t had good experiences with real estate.  They see you as an over-priced clerk because they watched you make “easy money’ while they chased the overpriced asset.

4- They need a lot of education…lots of it.  Since old is now new (in lending), the young are basically dinosaurs.

5- They really don’t have any “pain”.  They’ll be focusing on mitigating losses rather than maximizing wealth.  Their “pain” is best served by loss mitigation specialists and not wealth maximizers.

So…if that’s true, why the hell are you screwing around on Facebook and Twitter? Because the fastest growing user groups on those two social networks are the cheese, baby…the 45-65 age group.  If you want to sell or finance a lot of homes in the next 7-10 years, look for the baby boomers. Here’s why:

Five reasons the 45-65 market is the ticket to “real estate riches” until 2015:

1- They have the money and they’re getting a truckload more .  Baby boomers are in their peak earning years and are inheriting the largest transference of wealth, in history, as their WW2 generation parents pass away.

2- Boomers LOVE and trust real estate as an investment.  They’ve had great experiences with real estate as an asset class want to own 2 or 3 homes in retirement (this is a group that could buy twice as many properties as their children in the next Read more

by Brian Brady

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

Author website

If you’re unfamiliar with Dan Kennedy, he’s often referred to as “The Millionaire Maker“.  He cut his teeth as a direct marketing copywriting guru in the 80s, attracted a lot of readers in the 90s, and has built an army of students, this decade, through his Glazer-Kennedy Insider Circle.  His “superconference” had Gene Simmons and Nido Qubein as headline speakers.

InfusionSoft is a CRM on steroids and is used by many of Dan Kennedy’s successful students (among others).  Infusion Software is sponsoring a FREE  “Day with Dan” tour:

Infusionsoft, the leading, fast-growing provider of unique, integrated online/offline marketing, follow-up marketing and customer/prospect relationship management — the only software system ever endorsed by Dan Kennedy, and the one running the Glazer-Kennedy Insider’s Circle business — is sponsoring this 4-city seminar tour as an appreciation gift to our users and, with limited seating*, to other invited guests for three simple reasons: (a) as a meaningful contribution to the community of entrepreneurs in a challenging and uncertain economy; (b) as publicity tour for Mr. Kennedy’s newest books; and (c) as a means of introducing you and other business owners to Infusionsoft. There will be a brief “introduction to the power of Infusionsoft to transform your business into an automated, efficient marketing machine” at the Seminar, however you are under no obligation to participate or accept the offers made. For more information about Infusionsoft in advance of the Seminar, you can visit www.infusionsoft.com. *While the Seminars are open to the public, advance registration is required and no at-the-door admissions without tickets can be permitted. Seating is limited and strictly controlled. Hotel locations will be provided only to confirmed registrants.

Anaheim/LA, CA – 8/5

Chicago, IL – 8/6

New York, NY – 8/7

Orlando, FL – 8/8

If you’re trying to learn some cool marketing ideas, you’ll enjoy one of these seminars.  Sean Purcell and I will be in Anaheim.  If you can’t make one of the seminars, you might view this free e-book called:

“The Edge of Success: 9 Building Blocks to Double Your Sales.”

PS:  I have no dog in this hunt other than to hope a few of you enjoy the Read more

by Brian Brady

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

Author website

Which one of these loans is better?

A- Loan docs at 6.5% with 1 point cost, disclosed at 6.5% with 1 point cost 30 days earlier…OR…

B- Loan docs at 6.5% with 1 point cost, disclosed at 6.25% with 1 point cost, 30 days earlier,  but the originating broker negotiated the 1 point cost before application ?

There is more than one correct answer:

If you said A, you appreciate integrity of expertise and execution. You understand that the originating broker stuck her neck out at quote time and delivered on her promise, regardless of the changes in underwriting and market fluctuation.  She assumed the interest rate risk and underwriting risk of the loan after reviewing a borrower’s application, supporting documentation,  and credit report.  She may have earned an extra .5% by properly executing the rate lock (because she subscribes to MBS pricing)

If you said B, you appreciate the integrity of hyper-transparency in lending.  While the originating broker may have made some mistakes in lock execution and underwriting analysis, he did act in the borrower’s best interest and collected only what he negotiated.

If you said that neither were acceptable, you probably haven’t had a transaction close in the past 8 months.

Which will you choose as the better customer experience?

by Brian Brady

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

Author website

Bloodhound Blog is two years old tonight.  Congratulations to all the Bloodhounds.  Here’s a little something from the archives to demonstrate my  improvidence:

How can this development persist in a real estate market that all experts predict to plunge? The simple answer is that demographics are on California’s side:

1- Population still grows here statewide at a 1.5% annual clip. Now that may seem like anemic percentage growth compared to Nevada and Arizona but look at the astounding number of people moving to the Golden State. California enjoys a net gain of some 700,000 people each year.

2- There is a housing shortage in California. The affordability index may not be an applicable measure moving forward.

3- California employment is holding steady, in fact, a net gain of higher paying jobs are coming into the state. Why? California has high taxes and is hardly business friendly. Businesses want to be near the huge consumer base (the fifth largest economy in the world) that are California residents.

4- People would rather live in California than Buffalo.

Oops. I was bit early with the recovery prediction.

Congrats Greg and Cathleen.

by Brian Brady

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

Author website

Ever see what you thought was a pragmatic idea bastardized?  I’m no politician but I love throwing mock legislation up to the Bloodhound Congress.  If you’ve ever watched C-SPAN, The Bloodhound Congress resembles The British Parliament much more than our domestic legislative body.  Boos, hisses, and cheers abound in the rough and tumble world we live in.

I wouldn’t have it any other way. Madames Porter and Schlicke and Messrs. Kerr, Purcell, Ashby, and Johnson keep me honest and get the old grey matter working.  As Bloodhound Blog approaches its second birthday, I salute the folks who really make it such a special place for me; The Bloodhound Congress.

Y’all remember this plea to Senator Dodd to leave well enough alone?

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

I made the mistake of giving The Distinguished Chairman an inch:

I am recommending a NASD-type licensing model, with comprehensive education and testing standards. Originators should have education in financial planning, loan programs, and consumer suitability- that license will look a lot like a Series 7, General Securities Representative. Loan Processors should be proficient in loan programs and suitability, like the Series 6 license for mutual funds and variable annuities. Finally, managers and underwriters should have supervisory jurisdiction like the Series 24, General Securities Principal license. These licenses should be required for any and all participants, regardless of their employing company, and include federally-chartered banks. The effect will be higher costs to the consumer but expertise has its price.

Be careful what you ask; you might get exactly what you want.  Good Grief!  I didn’t really MEAN it!

This one riled everyone up. I reversed course and recommended yet another bailout.  I actually thought this was a pretty cool idea, exposing the Social Security system as Read more