There’s always something to howl about.

Author: Brian Brady (page 18 of 27)

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

Why’d Benn Have To Go And Do That?

I’m pleased that we received a hearty endorsement from Benn Rosales, at Agent Genius, for the BloodhoundBlog Unchained Social Media Marketing Conference, brought to you by Zillow. I’m pleased but I’m not surprised. I’m not surprised because I’ve gotten to know Benn these past six months. He’s a marketer and a fine one at that.

Some bloggers doubt the utility of the content we’re discussing; I completely understand that doubt. While UNCHAINED will talk a lot about the power of the web log, it is not JUST a bloggers’ conference. UNCHAINED is a marketing conference; a social media marketing conference. Not all bloggers are marketers; they are accidental beneficiaries of the explosion of the Web 2.0 evolution.

Web 2.0 is not “new”. Social Media Marketing started about 10-15 years ago. Interactive marketing is about engaging the consumer, using the far reach of the internet.

I remember starting a Yahoo Chat room, called “Phoenix Real Estate”, in the late 90’s. It was a destination spot I hosted for consumers and professionals to share information, each night, from 9PM-10PM; I often sat alone in that “chat room”. Some nights, a real estate agent or consumer would show up to ask questions; those were the best nights. I found that Sunday nights became the best time for consumers to interact with me and limited the chat room to a scheduled weekly event.

Hosted forums were another great way to engage consumers before LinkedIn broke onto the scene. When LinkedIn hit the net, it gave us a chance to engage the consumer on our terms. Rather than wait for an anonymous person to hit a forum or chat room, we were able to use demographic data to target certain “prospective customers”. If you’re a long-term player in this industry, LinkedIn represents a great chance to engage people in an interactive community.

Myspace offered a completely new paradigm to SMM. Here, users post personal profiles, robust with demographic data, to be “searched”. Through groups and “friend lists” a site-specific address book can be created Read more

I’m Sick Inside Because Lani’s Sick

Lani Anglin drives me nuts. She texts, twitters, lauds shiny objects on the internet, and mostly, reminds me that I’m middle-aged and she’s not. Every time she posts about how Gen Y demands business to be done, I wake up in the middle of the night with the anxious feeling that I may be turning into a dinosaur.

Her husband, Benn Rosales used to be a public relations professional. Amidst my PR challenges, I turned to Benn for some practical advice. After all, I’m trying to find my way in uncharted territory. I hammered Benn’s cell phone yesterday. I was driving up the 805, last night, and tried him one last time, before it got too late in Austin; I wasn’t prepared for what I heard.

We’re in the hospital. Lani’s got vertigo.”

Vertigo? What the hell is that?

I called Benn this morning to check on Lani’s condition and he communicated her condition completely. She’s at home, hopefully recovering from what be a fleeting incident. She might be dealing with something more permanent.

Benn, the consummate professional, asked “What’s up?”

“Um, uh…nothing. Just checking on Lani’s condition”

BS, man. You got a big announcement today, right? Give me the advance notice so I can post some good news; Lani’ll be pumped

That’s exactly what Benn did.

This is what I hate about Web 2.0; you get to really know people without meeting them. Bad things happen to good people and it sucks when those good people are one of your own.

Today was a great day but I feel like crap. Get well, Lani.

Once More With Feeling- Mortgage Rates Are Determined by Mortgage Bonds (MBS), Not The Ten Year T-Note

Mortgage rates are volatile today…very volatile.  There are two underlying factors contributing to the volatility: suspicion of the credit quality of the MBS market and supply/demand imbalance (more people want money than is offered).

Why am I so adamant about the fact that the ten-year treasury note is not the determining factor of mortgage rates?  The statement is factually incorrect.  While the two securities often move in concert, polarity can occur and sometimes does; this is one of those times.  The ten-year T-note is considered the benchmark, not bellwether fixed-income security.  This means that all other securities are compared to the 10-year T-note (we call that the “spread”).  It is GENERALLY a guiding indicator of ALL rates, however, in times or crisis or exuberance, it can’t be relied upon for other fixed-income securities’ direction.  Spreads to the T-note widen and narrow due to extraneous variables.

The real estate industry is calling for higher professionalism among lending professionals.  Some REALTORs, however, are clinging to  the demonstrated neglect the mainstream media delivers (check the comments).  An argument that bankrate.com is the source of mortgage rate movements, because the “most originators use it”, is akin to suggesting that Zillow.com is superior in home pricing than the Multiple Listing Service.

Mortgage professionals have at least three MBS quote services available:

1- Mortgage Market Guide ($100/month)

2- MBS Quoteline ($50/month)

3- Rate Link ($45/month)

Four originators (Me, Dan Green, Rhonda Porter, Mike Mueller)  with a combined 2007 funding production in excess of $100 million, subscribe to MBS pricing.  Why?  We’re mortgage professionals.  We see the need to invest $50-$100/month in the tools that serve our clients’ best interests.

What can REALTORs do today, to help the mortgage industry improve its professionalism?  Well, you don’t have to rely on the government to make the world a better place.  Get educated by professionals in the know, and start asking loan hacks which MBS pricing service they have.  

Would you refer a client to a REALTOR that didn’t subscribe to the MLS?  Of course not.  Why?

Your clients are much too important.  Choose mortgage professionals carefully.

Has Web 2.0 Failed YOU?

Louis Cammarosano, of Home Gain, outlines his theory about the failed promise of RE2.0. He offers four thoughts to back up his premise:

1- Success has been marginal.

2- It’s TOO consumer-centric and neglects the real estate professional (I’m still trying to understand how the anonymous presentation from real estate professionals, at Home Gain, really puts the REALTOR out in front.)

3- User-generated content is biased and therefore irrelevant.

4- Re.net adopters are somewhat smug in our “secret” which eventually turns people off.

Louis is new to weblogging so I want to be welcoming. He’s also a big boy and can handle himself so I will pay him the compliment of being blunt. He started his weblog with the initial purpose of communicating with his subscribers. When he invited a bunch of real estate bloggers to contribute, he recognized that Web 2.0 has legs. The very platform he criticizes is the one he employs to deliver that criticism and that…makes no sense.

The kept promise of interactive marketing is independence. We look no farther than my co-contributor (on Home Gain) Jay Thompson for proof of that kept promise; independence. Web 2.0 disintermediates the BROKER and LENDER (in my case) if practiced correctly. It allows you to connect with consumers around the globe. 90% of the consumers are still going to use a real estate agent when buying or selling a home. While that percentage may drop, it will still be overwhelmingly large.

Why? Real estate agents (and mortgage originators) add value. If we can communicate that value proposition, directly to the consumer, without dependency on a Home Gain, a Countrywide, or a RE/MAX, to do our advertising, both we and the consumers win.

I continually proclaim that blogging isn’t the “little purple pill” to cure all of your marketing deficiencies. It is, however, an opportunity for you to find a large number of people, who when employing a long-tail search, want exactly what you can provide.

That’s not failure. That’s power.

Practical Marketing With Twitter

We learned that we are not alone, yesterday. It might do us all some good to look outside our little world to see how other small businesses are using technology and new media. You’ll recall that I started tweeting rates about a month ago.

It is in this spirit that I offer you a series of articles, written by Jennifer Laycock on Search Engine Guide:

If you’re just joining the series, make sure to go back and read part one where I gave step by step directions on getting your Twitter account up and running, part two where I explain how to send messages and take advantage of the Twitter follow/followers system and part three where I explained how Twitter can help you meet new people. In part four, I looked at the traffic potential of Twitter and explained the value of retweets in making a link go viral.

Greg, I’d like to include her series in the Odysseus Competition.

Bloodhound Blog Remains Open. What Would Beth Ask?

Bombastic blogger, Kevin Tomlinson, knows how to rile up the crowds. Most of you met Kevin through the Project Blogger competition, hosted by Activerain.com. Kevin never disappoints. He made the dramatic statement that he believed…

Bloodhound Blog would be shut down by Friday.

Kevin’s not mean, he just likes a little controversy.

I thought I’d try to practice the WWDGD principle and attempt to get meaningful input from the crowd. I expected to be baited by the irrelevant but chose to ignore them; this conversation is too important for the practitioners. Scroll through the comment thread and you’ll see where Kevin’s broker, Beth Butler, started to go into a state of curiosity rather than remain in a state of judgment.

WWBA (What would Beth Butler Ask?). Russell Shaw swears by surveys so I thought I’d try that approach. Here’s our first installment of WWBA:

For Glenn Kelmann:

1- I think I would ask how his business model changes if :

A. The offer of compensation in the MLS is substantially changed?

B. If IDX is no longer available

2- If the market turns downward, what plans does Redfin have for longevity in a down market… say where mls data shows an overall decrease in the number sales of 50-60% like it has here in the South Florida market?

For Russell Shaw:

1. How is his team organized?

2. How has he used his internet presence to improve his business? Specifically, has he changed or is he planning to change his website? Who does he rely upon for technical support and direction?

3. I understand that Phoenix is having some of the same market challenges as Florida, how has he changed his operations to adjust?

4. With regard to his marketing, what percentage of his marketing budget goes to advertising properties? himself and his brand?

5. Number of listings he expects to carry to obtain 2000 sides? What percentage of his inventory does he sell Read more

Long Beach Realtor Laurie Manny to Speak at Bloodhound Blog UNCHAINED Social Media Marketing Conference in Phoenix, AZ

I’m ecstatic about our latest addition to the UNCHAINED faculty.

Laurie Manny, host of Long Beach Real Estate Home, has signed on to discuss how to build a locally-focused real estate weblog. In one short year, Laurie has enjoyed a meteoric rise in the search engines for the competitive keyword phrase “Long Beach Real Estate“. More effective, however, is her complete domination of long tail searches, “downtown long beach real estate“, “goldengate square“, and “oceangate square“. The latter two search terms are buildings in which Laurie has a major market presence.

Alas, search engine placement is nothing if the site doesn’t create fans. Laurie delivers the goods consistently with interesting content, a plethora of guest authors, and detailed market reports. She enjoys commercial success by employing a sophisticated IDX feed and CRM solution.

Laurie cut her teeth on Activerain.com and has strong following of “students” there who model her. She readily shares her success causing many Active Rainers to wonder why Laurie hasn’t had a more prominent, instructional role in RE.net conferences.

Frankly, we couldn’t let her knowledge escape the national spotlight so we invited her to join the faculty of UNCHAINED.

Ask Laurie a question about how she thrives in the rough and tumble world of online real estate marketing and the answer you’ll get will be complete. It’s like taking a sip from a fire hose as she rattles off actionable ideas about how to drive traffic and attract customers.

Leave your raincoat at home but bring a pen and paper. Laurie Manny is UNCHAINED.

PS- When Laurie writes, Active Rainers listen. The smart money is getting seats in the front row before Laurie’s fans hear about this and crash the server.

Gene Simmons: Originality is Overrated

I’m a Dan Kennedy disciple, a card-carrying member of the Glazer-Kennedy Inner Circle.  I read his book, The Ultimate Marketing Plan, six years ago, and was hooked.  Gene Simmons is one of the keynote speakers at the GKIC Super Conference, this April.  I listened to an interview with Gene Simmons today about his message for this April’s Super Conference.  Oh, if you’re wondering why I listen when a 70’s rock and roller talks, it’s because he’s a marketer; a damned fine one.   Here are some snippets from the interview.  I think it may give you a glimpse to why I think the way I do about marketing.

1-You only get the respect you demand.

Gene tells a story about his advice to a fifteen-year old girl.  He advised her to get over the idea that people’s perception of you somehow defines you.  He continued by saying that you are only as important as you believe you are; how you perceive yourself is eventually how others behold you. 

Does your marketing message convey that?  I’m not talking about ego.  Do you truly believe that you are an expert agent or originator?  This isn’t about “act, as if”, it’s about demonstrated expertise.  Can you deliver the goods?  If your self- perception is less than expert, correct the flaws that hold you back. 

2- Originality is overrated.

I don’t think I could agree more.  To the doers come the riches, not the thinkers.  Anyone can have a great idea; it’s the implementers, the innovators, the action-based people who change the world.  Gene Simmons called KISS a pastiche; part rock and roll, part comic book, and part horror show.  A great example of pastiche,in theater,  is Quentin Tarantino.  Neither Gene Simmons nor Quentin Tarantino “created”, they innovated. 

Are you constantly planning or constantly doing?  I talk to agents and originators, daily, about their customer acquisition systems  Sadly, most explanations are long on ideas and short on action. 

3- Marketing is the most important thing you can do.  If the market is crowded, move the market.

Gene Simmons told the story of the Citrus Growers of America.  They crafted a message that the first thing you should do, Read more

Comments to Contacts to Clients: Bawld Guy Talking…at UNCHAINED.

Sometimes, you don’t have to look far for expertise; it’s right in your own backyard.

bawld guyJeff Brown took me to lunch, yesterday. Our lunches usually last a couple of hours. We crunch numbers for investors, tell stories about the Padres, and try to start conversations, with the server, for his bachelor son. Yesterday was different because I had an agenda. I wanted Jeff Brown to participate as a faculty member of UNCHAINED.

I crafted my sales pitch as a sped down the 805 (remember when I talked about scripting?) . I reviewed all of the reasons it made sense to participate and tried to translate those reasons into tangible benefits for Jeff.

The sales pitch lasted 3 seconds. Jeff accepted because he’s the kind of guy who believes in abundance. He wants you to wildly succeed regardless of what’s in it for him. That philosophy is important because it’s why Jeff is so successful. He makes people wealthy first, then worries about how he gets paid.

I talk about bridging the digital divide; Jeff has perfected it. Jeff Brown can teach you how to turn a comment into a contact and a contact into a client. Jeff is a guerrilla commenter. He find opportunities in comment threads and capitalizes on them like a halfback hits the seven hole.

If you’re coming to UNCHAINED, you should be thinking of questions for Jeff. Here are some of mine:

1- How do you determine that a commenter is a good fit for you?

2- When is the right time to initiate contact?

3- How do you deal with “angry” emails?

I have the luxury of face time and can tell you, it’s worth every minute. Please welcome Professor Bawld Guy to the UNCHAINED faculty.

PS- Jeff is truly an amazing online marketer. His branding efforts are second to none. When my six-year old daughter hears that I’m on the phone with him, she whispers to my wife (he’s the bawld guy, right?) . His branding is so effective that we have to explain to her teachers Read more

The Two Sins Writers Commit That Business Bloggers Can’t Afford

Here are two tips to help you avoid failure in real estate/mortgage weblogging:

1- Don’t commit the first sin; being boring. Make doing business with you fun for your customers. NBC Radio did a survey of radio personality Howard Stern’s audience. Half loved him and half hated him. The former group listened for an average of something like 25 minutes, the latter listened for something like 47 minutes. The reason both groups gave for listening? They wanted to see what he was going to say next.

Consider this first post:

Mortgage rates have declined some 1/2 of 1% in the past two weeks. We advised you to float your rate, back on December 27, 2007 but I warned you that the decline may be short-lived.

Lock all loans at application. If you have a loan in processing, and are floating the mortgage rate, lock your rate. The worldwide liquidity injection has had its desired effect. The anticipated Fed rate cut, on January 30, 2008, is already built into the pricing. there is more risk to mortgage rates rising than there is reward for holding out for a lower rate.

BORING!!!! What the hell was the author thinking? Now, let’s see what happens after he asked his readers what was wrong (fortunately, they gave it to him straight):

I fell in love with ARMs again, after a five month hiatus. Hey! It’s Valentine’s Day so I can tell you a love story. This love affair has been going on since I was in my 20s. The sexy allure of adjustable-rate mortgages were replaced by the stability of that old battle-axe, the fixed rate loan. The culprit was the flat yield curve. I dig curves so my eyes popped out of my head when I opened my e-mail this morning.

Adjustable-rate mortgages walked into my life like a wild-eyed, long-haired, bombshell on a Harley, toting a bottle of tequila. Normally, I balance her beauty with the risk she presents but I promise you, she’s a changed woman. This time, she promises to stay put for a ten-year period. Frankly, ten years is plenty of time for me to Read more

Unchained Pioneers: Podcast with Brad Coy and Andy Kaufman on how they hope to benefit by coming to BloodhoundBlog Unchained

I had a great talk with Social Media Marketing pioneers Andy Kaufman and Brad Coy this afternoon. They were among the first folks to register for BloodhoundBlog Unchained. If you click on the podcast linked below, they’ll tell you in their own words the benefits they hope to bring home from their trip to Phoenix.

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Are You Blogging For Speed?

I don’t subscribe to the theory that you will fail if you blog for leads. I blog for leads. Even now, I’m attempting to share some knowledge with my target audience in hopes that one will pick up the phone and say, “I want to do business with you”. Marketing communications (and blogging IS a form of marketing communication), are designed to garner potential customers. Many will proclaim that blogging is different; they are lying by omission. Pour a bunch of liquor in them and ask them why they blog. Eventually, you’ll hear the phrase “to communicate with existing and potential customers” in their response.

Dustin Luther and I discussed this at the Inman Connect NYC Conference, a month ago. If you click the link, and watch the video, I proclaim my “call to action” within 30 seconds. My opening (and concluding) line is, “We gotta get busy“. My theory is simple; in 2-3 years, the big guys will have caught on and beat us at our own game. They have the three important resources that you and I don’t have: time, money, and people.

Does that mean that you should throw in the towel? Absolutely not; quite the contrary. It means EXACTLY what I said; we gotta get busy. You need to be taking action today so that your 2011 is filled with listing appointments, from people whom you’ve met, through your interactive marketing efforts.

I break a lot of rules (or urban myths) because I recognize that my time as “America’s #1 Mortgage Broker” (that’s what Google calls me) is limited. Here are a few things I do to flood my inbox with e-mails and make the phone ring:

1- I syndicate my Mortgage Rates Report on 5-6 different sites. I am constantly being contacted by “experts” who warn me that I’ll be subject to the Google Duplicate Content Penalty. My two responses are:

a- When? If you click the Google Duplicate Content penalty link, you’ll see that the efforts are aimed at search engine spam, namely, Read more

Higher Loan Limits OK-ed by Senate

We talked about the foregone conclusion of higher loan limits for conforming and HUD loans two weeks ago:

The word inside the Beltway is that the deal has been fast-tracked for approval (by The Senate and President) under the following terms:

1- GSE (conforming) loan limits will be temporarily increased to $650,000 and remain in place until 12/31/2008. That means that states like California, Illinois, New York, Massachusetts, and New Jersey will get some much needed relief.

2- FHA loan limits, currently locked at $362,790, will be recalculated to 125% of the county’s median price, with a limit of $729,000. This is useful for states like California where the conforming loans are subject to LTV decreases due to declining market conditions. FHA loans aren’t subject to those blanket LTV guidelines. This loan limit hike is expected to be permanent, unlike the temporary GSE hike.

Nothing is rock-solid; it’s all rumor at this point. The Senate will play with the numbers but the Beltway Crowd says that President Bush has signaled the loan limits he will support, today. Expect this to be a reality sometime between Valentine’s Day and St. Patrick’s Day.

The Senate played some politics, then promptly passed the bill:

Congress on Thursday passed a $152 billion economic stimulus package designed to provide a timely, targeted and temporary boost to the flagging U.S. economy.

One day after Republicans successfully filibustered a broader plan favored by the Senate Finance Committee, the Senate approved the Republican-backed measure, nearly identical to one passed by the House last week, on an 81-16 vote.

The House approved the measure hours later on a 380-34 vote.
President Bush is expected to sign the legislation quickly.

President Bush telegraphed his likely approval:

“This plan is robust, broad-based, timely, and it will be effective,” Bush said in a statement released by the White House. “This bill will help to stimulate consumer spending and accelerate needed business investment.”

Just in time for Valentine’s Day. Get those loan applications in now; the herd will be stampeding in March.

HELOCs Frozen: Preserving American Homeownership

Preserving the American Dream is a position paper authored by John Dugan, Comptroller of the Currency. “Preserving American Home Ownership” is the “initiative” rumored to be pondered by Countrywide Home Loans, IndyMac Bank, and Washington Mutual.

N.B.: The following is rumor; something that was “heard on the street”.

Jeffrey Smith reported, two weeks ago, that Countrywide is freezing some home equity lines of credit. The wholesale lending reps and escrow officers, in my own little network, were buzzing about the possibility of such an action from Countrywide, WaMu, and IndyMac.

More on this rumor as it develops. Today, it’s just a rumor. I think it’s comical the Countrywide won’t do anything without a PR/Marketing twist to it (as a marketer, I love it). It is rumored that the CFC initiative will be “Preserving American Home Ownership”

UPDATE:  While I haven’t confirmed the rumor with Countrywide, there is one disenfranchised Countrywide borrower, getting pummeled by the bubbleheads on a Yahoo message board.

Watch Out! Here Comes Erin Brockovich!

Hypothetical TV advertisement (aired at 2:00 AM):

Did you overpay for your home? Did your real estate agent give you bad advice?

You may be entitled to damages under a class-action lawsuit if you bought your home between the dates of June 1, 2005 and September 30, 2007. The real estate agent, who received compensation to aggressively represent your interests, may have withheld material information about relevant market data, not limited to but including comparable sales, and current listings, in your neighborhood.

If the value of your home rapidly decreased soon after you bought it, The Coyote Law Firm may help you recover your loss. The Coyote Law Firm has a 27-year history of representing average people, just like you, who were tricked into buying a home by unscrupulous agents. Nefarious schemes, such as your real estate agent securing financing and withholding appraisal reports, may have been the cause for your loss.

Contact 1-811-THE-COYOTE to see if you are entitled to damages.

You had to see this coming. Of course, where else would it start but San Diego?

NB: This is a satirical article. The author knows of no law firm called “The Coyote Law Firm”. Any similarities to any person, law firm or legal business is purely coincidental. The intent of this article is to highlight the complicated nature of real estate advisory and provoke discussion from industry professionals. The opinion is solely of the author (Brian Brady) and not necessarily that of any other author, real estate or mortgage professional, or real estate brokerage, affiliated with this weblog or website.