There’s always something to howl about.

Author: Jeff Brown (page 8 of 15)

Real Estate Investments Broker

Random Thoughts For The New Year

Thought:

The only folks I know who can multitask without dumbing down the results are stay at home moms, God bless ’em. They’re seemingly capable of doing a dozen tasks simultaneously while being asked to kiss the booboo on Suzie’s knee, or laugh at the faces being made by Suzie’s big brother. The rest of the population? Multitasking for them is an ongoing disaster generating mediocre results at best, and shamefully embarrassing results at worst.

Go ahead, tell me you haven’t victimized yourself via multitasking, I dare ya. ‘Course I’m uh, challenged when it comes to doing too many things at once. It’s only been a recent victory — talking on the cell while pacing. Little steps I guess.

For 30 days, consciously eschew multitasking when it comes to your professional life. Focus like a laser beam on the task at hand. Produce the best of which you’re capable. Just 30 days. Try it and you should find out what I did. Everything I did improved in an easily measurable way.

Thought:

My favorite Two and a Half Men episode is ‘Call the Guy’. Because one brother refuses to get a pro to fix the satellite dish, he ends up with several painful injuries. He abhors calling the guy. Of Course, the running joke then becomes, ‘Hey, why didn’t you just call the guy?’

I bring this up because I’ve come close to tossing my cookies more than once after reading or hearing someone talk about their website woes. Seems they do everything themselves, but I’m thinkin’ they didn’t get the memo — they’re not web guys.

Yeah, I know, the proprietor of this site does everything himself. Well duh. If I had his ‘puter programming background I’d consider doing mine myself too. Probably not, but I’d consider it. But since most folks adopting the do-it-yourself approach could study what Greg knows on the subject for a year, and still not know what he’s forgotten, why bother?

Not convinced? Look, I get it if it’s because of the additional cost a pro brings to the party. If that’s the case, it is what Read more

Social Media And What Matters

Here we are again. There’s a few Social Media (SM) venues that have real estate folks all agog. Between Facebook (FB), Linkedin (LI), and Twitter (T), you’d think agents all over the country have had their careers rescued by the magical powers of SM. Let’s find out, OK?

I preface the following by ensuring you I have no dog in this fight. I’d truly like to find a plausible answer. It’s my guess I’m not rowin’ that boat alone, either.

Yesterday on T I posed the question: Who out there has done at least one closed transaction as a direct result of FB, LI, and/or T? At first all I heard were crickets. Then the conversation began in earnest. Everyone talked about referrals, and leads. Oh my, there were lots of leads. Turns out, much like SEO, bankers don’t accept leads as deposits. 🙂

There was a small handful here who said they’d closed A deal, and were pretty sure of its source being one of the three SM sites.

Then somebody said, “Seems the big hitters out there are being kinda quiet.”

My response to that was that most folks thought of as so called ‘big hitters’ aren’t nearly what they’re perceived to be. Though I’d like to find out there’re agents out there makin’ a consistently impressive killing on these SM sites, I’m skeptical.

To that end, I said I’d pose the question here. What better place?

So, all you agents out there depositing all those commission checks every month because of your skillful use of FB, LI, and T? Make yourself known, OK?

Here’s my experience, though you should know, it’s not much.

I’m not, nor have I ever been on FB. I’m on LI only because a consultant put me their themselves. The damn site irritates me no end. I get invites via email, mostly from folks I already know. That’s cool, right? However, as happened today, (and about 20% of the time) the invite link sends me to a LI page bereft of the ‘Accept’ button. And no, I don’t know, nor do I care why that happens. Read more

The Verdict Is In

Last year on these pages I wrote posts extolling the benefits of EIUL’s. Back then I called them FIUL’s. The common usage for awhile has been the former, which we’ll stick to here. What’s an EIUL? It’s permanent insurance, designed, in essence, to deliver tax free retirement income. Some have called it investment grade insurance. It also has many other benefits, including the ability to pass the entire value of the policy tax free to heirs upon the insured’s death.

My point in the previous posts was that if folks would just be objective, they’d realize 401k’s are a trap, baited by government with paltry annual tax savings to lure us in. What folks don’t know, I wrote, is that upon retirement, a disciplined saver finds out that in 4-6 years they’ve already paid back 30 years of ‘tax savings’. Such a deal.

Why would anyone do that on purpose?

It created a barrage of comments, some seemingly personal, but most disbelieving the information imparted. What’s so ironic, is whenever we guide our clients into these vehicles, it’s at a loss to us. We make not a penny on anything done by the EIUL experts to which we refer our people.

Then why do we advise many of them to separate some of the real estate investment capital from their pile in order to acquire an EIUL? Simple — it’s the right thing to do. Yesterday I posted what happened to those who refused to believe me last year.

Those who manage their company’s qualified retirement plans? Please, pretty please, at least check into this? If you’d at least done your own objective research, you would’ve discovered I was simply tellin’ you the way it was, and was gonna be. And now, the way it is.

Those who saw the information for what it was, did not get hurt in the stock market crash of the last couple weeks. It’s been significantly hurtful to most, and absolutely devastating to a majority of American taxpayers heavily invested in mutual funds through their 401k’s.

Those who chose EIUL’s? They not only didn’t lose a penny, Read more

It Takes The RIGHT Kind Of Village

Years ago, when my kids began asking questions about presidential campaigns it became necessary to sit down with them, explaining the foundational beliefs of the two basic ways of thinking in our country. The first of these talks took place with my son, (now the Brown who’s after the ‘and’) ’92 when he was a 12 year old middle schooler, during the presidential campaign. Later, at about the same point in the ’96 presidential race, the talk was repeated with his sister.

Here’s how I explained the difference between the two belief systems. Would love your thoughts. (Ready Pandora?)

A thousand years ago there was a river hundreds of miles long. Two villages were located on the river, but were totally unaware of each other’s existence. Both villages were based upon the water and fish provided by the river.

The first village discovered they had families among them who weren’t doing as well as most others. Today we call those folks, poor. The leaders cared greatly for all the villagers, so this couldn’t be ignored. What to do? They decided the solution was simple.

They went to the best 20% of fishermen in the village and demanded much of their catch be given at no cost to those who were having ‘bad luck’ fishing. Any of these 20% who refused were visited again by the leaders, this time armed with spears and knives. The message was received, and the fish was given away to those who couldn’t or wouldn’t get the job done.

Over time, the most talented fishermen and their families stopped catching so many fish, as having ‘extra’ had become a painful experience. Since they didn’t ‘need’ any more fish, they simply caught just a little more than they necessary to keep their family well fed. They had tired of fishing for others.

The second village had the same problem — there was a small percentage of families who just weren’t makin’ it. The leaders got together and came upon the solution they would employ. They invited the village’s best fishermen to meet with them. They asked these elite fishermen if they’d Read more

Ever See Or Hear Of A Tornado Touching Down On An Entire Continent?

Yesterday as I was waiting in my satellite office for the ‘other Brown’ to show up for a planning session, I laid my book down, taking advantage of the rare opportunity to sit quietly and think, sans any communications devices invented after 1951. I pondered more deeply what a previous morning conversation had reenforced for me.

Since my firm deals with builders and lenders in several states, I’m often privileged to hear what local market experts have to say. Much of the time it falls under the heading of, ‘What the hell?!’, but sometimes you find builders/lenders who’ve really drilled down into their corner of the real estate world. They ignore everything but empirically documented facts. Then with careful, objective analysis, they search for any opportunities hiding behind all the LameStream media’s ongoing fertilizer convention.

The phone call.

One of the builders I especially like and trust, had just hung up with a local lender he both trusted and respected. I’ll cut to the chase here. The lender knows what my firm’s been doing in his state. (For the time being, the lender, builder, and state must remain anonymous, by their request.) We’ve been tearin’ it up. They wanna go off the grid so to speak, setting aside a few boatloads of capital to lend to our clients, (not exclusively) without the constraints of Fannie and Freddie.

The builder? He’s no small fish, but his net worth doesn’t require three commas yet. 🙂 His product has been sellin’ itself during this correction. It still is. His biggest problem today? He can’t find enough land — or when he does, a bigger fish plays hardball and shoves him out the door. Most recently he walked away after being under contract. Now that’s hardball.

Also, this builder told me the recent builder surveys in the region as a whole, showed their confidence as an industry had risen almost 20%. Go figure. The lender is willing to revert to classic Old School lending by opting out of the secondary market and keeping these loans. What a concept. This will enable them to loan on a virtually Read more

The Belly To Belly Dilemma: Questions YOU Must Answer

I was inspired to republish this post, which was first seen here almost 18 months ago, after reading the answer my son gave to a Brown & Brown client yesterday via email. I’ve spent four years mentoring him within an inch of his life. Pride bubbled up from nowhere as I read his response. At 27 he’s already where I was at 40. (I just turned 57.)

His journey to full ‘agentship’ is another post altogether.

Not being a hi-tech guy by even the most lenient definition, I try to bring to the fore, skills required to actually list or sell real estate. Until GeekWorld figures out how to interact with prospects and clients belly to belly, cats will continue to be skinned in every conceivable way — except hi-tech. Even Hal hasn’t figured that one out.

The ability, the art if the truth is told, to answer questions is almost always the difference between consistent success, and consistently being just ‘this close’. You’re reading that and know exactly what I’m talkin’ about.

It’s shameful the way I used to answer questions from prospects or clients. The excuse of age is available, as I was only about 25 or so. But even youth, or having just transitioned from homes to investments doesn’t wash as an excuse for my pitiful performance back then. It’s truly a blessing there were no hidden cameras or recorders in the office back then.

Clients would ask me if the rents in the area would tend to rise during the holding period. And I’d answer yes. The problem? Most folks asking questions want the answer, of course. But what they really want is the ‘why’ or ‘how’ behind your answer. Back then it irritated me no end that they wouldn’t just accept my answer as if I was quoting from the missing third tablet Moses forgot on the mountain. I knew the answer. Why couldn’t they just take my word for it? What a moron I was. I could have been more full of myself back then, I’m just not sure how.

That’s about the time I was blessed by Read more

Understanding How .250 Hitter Out Earns .325 Hitter

I’ll begin by encouraging brokers & agents to read and continue to follow Sean Purcell’s Super Team series. In my opinion it should prove prophetic and timeless. Why? ‘Cuz it’s about bank, and how to add 0’s and commas, the only thing that matters when the score is posted. The rest is like a bunch of artists arguing over being true to their spirit. 🙂

Alrighty then, how is it that there are players who strike out a lot, get 125 hits, and play just OK defense, yet make so much more than those rarely striking out, gettin’ close to 200 hits, and playin’ much better defense? The answer is simple, and it applies big time to real estate agents.

The answer can be found in the answer to another baseball question.

What team wins any baseball game?

A. The team with the most hits.
B. The team making the most spectacular defensive plays.
C. The team with the most runs.
D. The team with the most at bats during the game.

Yeah, we all know the answer. Then why do so many not understand how some .250 hitters could buy and sell .300+ hitters before breakfast is over? Stick with me here, ‘cuz this is hugely important when applied to those working in commission real estate.

Adam Dunn plays for the Reds and makes a staggering $13 Million a year. Incredibly, the guy could figure a way to strike out in a brothel. The season’s barely 2/3 over and he’s already K’d 110 times! That means when the season’s over he’ll have walked back to the dugout in shame over 150 times. $13 Million a year. By the way, since 2004 Mr. Dunn has averaged over 100 runs batted in, yearly. Apparently in baseball runs = bank. Go figure.

He hits .240 — your Aunt Fannie could strike him out on any given day — his defense is, uh, well at least he wears a glove. Yet he makes $13 Million a year. He gets over 500 ‘at bats’ each season. Sometimes over 550.

Let’s look at this through a real estate agent’s eyes. Uh Read more

The Disappearing (Stressed) Middle Class — Where Are They Going?

David Shafer at Uncommon Financial Wisdom is smarter than the average bear, as Yogi used to say. We met online, though I don’t remember exactly how. Over time you discover he’s the real deal. After half a dozen conversations with him you’re not surprised to learn he’s also earned a Ph.D. What kind of mind gets a degree in finance and a doctorate in social science? How about a person who can understand the numbers in the relatively black and white world of business/finance while simultaneously being able to think.

Don’t engage mouth before putting brain in gear when dealing with David. Frankly, I think he’s a natural as a contributor here. But that’s a different post for another day.

Today he wrote a guest post on my blog. I was gonna add my 2¢ here before linking you to it, but wasn’t in the mood to embarrass myself. Read, and notice how quickly he lays out some fairly complex ideas. He points out problems and then brings solutions to the table.

So go find out What Happened To The Middle Class then head over to David’s blog. You won’t regret it.

You Just Don’t Get It — Get This! — There’s The Door

Nothin’ big time here. A pet peeve. My intuition tells me I’m not the Lone Ranger.

To give credit where it’s due, this idea came from Mark Cuban, who takes a pretty tough stand against those using this phrase.

Ever been going back and forth with someone on the merits of a topic on which you disagree, when out of nowhere, the other guy says, “You just don’t get it”? Most of the time they say that for one of two reasons.

1. It’s absolutely, irrefutably true. They’ve tried every approach in explaining their position, including empirical evidence documented with multiple examples. Yet in the face of this overwhelming tsunami of evidential proof, you continue to maintain the earth is actually flat.

Example: The Dodgers were World Champs in 1963. A New Yorker complains bitterly I’m mistaken. My assertion is an historically provable position, which I proceed to do — to no avail. I’m justified in my refusal to waste more time with one who will not see — so I say to them, “You just don’t get it.”

2. They’ve run out of anything meritorious to say in support of their position. It’s at this point you’re supposed to realize how incredibly dense and/or stoopid you are, and that arguing with you is a worthless endeavor.

Here is an example of #1 and #2.

#1 — Newspapers just don’t get it.

Wouldn’t ever say this is universal, but at the rate they’re going down, one might conclude they really don’t get it.

#2 — Some blogging expert tells a blogger that because they’re disobeying some particular sacred cow of blogging, that they ‘just don’t get it’.

I disagree with one point Mark Cuban makes. He says using the offending phrase means the speaker is lazy. OK — maybe even most of the time. However, we all know examples where continued debate is time we’ll never redeem. Attention: Totally needless cheap shot coming. Just checked the NBA records listing league champions the last 20 years. The Mavericks don’t appear. It would seem that organization just doesn’t get it. 🙂 Disclosure: Author is Read more

Lead Generation — Quantity Or Quality? Whatever Works For You

Turns out I learned about the whole lead generation thing painlessly and without knowing what I was learning. The best part was how it led to meeting so many cool folks of the estrogen persuasion. As a newly unattached 40-something guy in San Diego, I hadn’t dated since Nixon was in office. It was 1999 — I didn’t need a primer, I needed a new chip installed. Talk about clueless? I missed out on three very nice ladies ‘cuz I didn’t know ‘Why don’t we catch a cup of coffee some time’ was a clear sign of possible romantic interest. I just thought women these days were big time coffee fans. Thankfully the higher tech ladies in the office, when they stopped laughing and could breathe again, gave me the heads up on what was what.

It’s the same thing in lead generation. The goal is different. There’s not as much coffee or dancin’, but it’s the same thing.

Early on, it’s my opinion the agent/LO must decide with what kinda leads they wish to work. I see it as two well defined choices.

A. High quantity — must sift through for the quality lead — stellar system needed.

B. Few leads — very high quality — high conversion rate.

The initial requirement was to develop a viable Purposeful Plan. The first two questions you must answer — Where are you now? Where do you wanna be?

I was single — I didn’t wanna be single.

First thing the office ladies told me was to join some online dating services. (I’m not the bar type.) Within 24 hours I was the proud member of four sites. Then they all looked at my profile and said it simply wasn’t cuttin’ it. Had to talk more about my kids. And it wouldn’t hurt to mention I didn’t live in Mom’s basement, did have my own car, made more than $10/hr, and knew how to use real silverware. Done. By the way, I absolutely refused to say how much I liked long walks on the beach. I had my standards, and wanted to keep my Read more

A Different Business Model For Your Consideration

At Brown and Brown, we’re undergoing moderate to extreme changes in our business model. Extreme at home, mild to moderate away from home. We’re leveraging our Rainmaking ability through these changes. Below, I’ll address what we’re about to launch in our own backyard.

At home we’re eschewing the 3% listing side fee for a relatively modest monthly fee.

The fee will be $500-1,000 monthly, ’till sold. The buyer’s agent will still get 3%, sometimes more. Properties sold in 90 days or less will save, on average, five figures. This model is custom designed for our specific client profile locally, which is an income property investor who should be taking that equity to places out of state. (Preferably by around 4:30 yesterday afternoon.) Our niche has been 2-4 unit properties, but we’re gonna market hard to SFR’s/condos/townhomes also, if they’re rentals.

It’s my belief this model will work incredibly well for house agents. Here’s how I see it working for them.

1. Massive Old School and 2.0 marketing. The methods really aren’t important as long as you’re hanging cat skins by the dozens on the wall. Once the pipeline is full, entrance and exit, it’ll become almost self perpetuating. Not really, but close enough for jazz.

Thought

The marketing? We’ll be using postcards/snail mail with warm call follow-ups. ‘Course we have a distinct advantage when calling. House agents can’t convince a homeowner to sell. We can. They don’t live there. If we can convince them they should sell/exchange through our experience, expertise, and general all around charm, they’ll list. We’ll be using other methods, but that’s another post.

2. As many buyers’ agents as required. In the current buyer’s market, maybe more than I’d need when things normalize. Then again, depending on your market, ‘normal’ may mean the explosion of pent up demand lookin’ for a place to light.

Thought

Another advantage for Brown and Brown in San Diego. We have no need whatsoever for even one buyer’s agent. We think it’s silly to invest here, so we won’t be representing buyers. We couldn’t sleep at night if we put folks into San Diego Read more

Rainmakers Everywhere But Not A Drop Of Water In Sight

I’ve started and deleted this post three times now. It’s galling. I know what I wanna say, but can’t say it the way I wanna. It’s important though, at least in my thinking. So here’s hoping the fourth time is a charm.

Back in the ’60’s I was the janitor for Dad’s real estate offices — all seven. Once a week, there I was, a high schooler arriving in my ’59 Morris Minor, later a Datsun pickup, cleanin’ up, and printing the new listings for the week. I soaked up immeasurable amounts of data, completely unconsciously, while listening to agents BS, or just shootin’ the breeze with them while emptying their trash, or waxing their desks. (when I could actually see their desks, that is)

His first ever office, located in East San Diego, is now a Mobil station. For those in SD it’s at 39th & El Cajon Blvd. The agents in that office turned out to be his version of the ’27 Yankees. Eight of them opened up their own companies, and the office only held 10. They were hard workers, kept their noses clean, and with one glaring exception, really cool guys.

They were Rainmakers. What passes as a Rainmaker today isn’t what it was then.

Let’s all agree what a Rainmaker really is, and what they do.

In real estate, a Rainmaker is one who consistently produces leads resulting in closed escrows. These leads are often handed over to those working under said Rainmaker. There are also circumstances in which a Rainmaker will create ‘rain’ for other businesses, creating a storm of synergistic dollars raining on all those who have strategically situated themselves directly in the path of the anticipated storm.

To be fair, and this is a subjective personal definition, Rainmakers produce business. Whether it’s used to benefit the Rainmaker’s team or not, it’s business produced by their efforts. The fact they may only be raining on their own personal fields is a false issue. I also maintain producing less than a deal a week, give or take, doesn’t make the agent a Rainmaker. 30 deals is Read more

Who Should Use EIUL’s — 401(k)’s Aren’t Cutting It For Most

Equity Indexed Universal Life is, when simplified, investment grade insurance. It’s a tool, a vehicle used by folks to create retirement income. I’ve written of this before, much to the chagrin of Mr. Swann. I’ve since put many clients into them using industry experts. Why? ‘Cuz it’s the right thing to do. Every dollar a client spends on this vehicle is a buck they’re not spending with me. I make zip, nada, zilch. They understand this, and appreciate it. They’ve come to rely on our consistent congruency when it comes to keeping their agenda #1. And their agenda is a magnificently abundant retirement. We make use of what i’ve called a Purposeful Plan. Sometimes that Plan includes investment vehicles other than real estate. We do what works.

EIUL’s work.

As a favor to Greg, though he didn’t ask, I’ve moved this party over to my place. Last time I think his head almost exploded when this subject came up here. People tend to get upset when it’s their ox being gored. Heck, I’m goring my own ox with this one. But again, it’s the right thing to do much of the time.

David Shafer is the guy who will answer your technical questions for this post. He recently wrote a guest post on BawldGuy Talking explaining why and when taxpayers would opt for an EIUL over their qualified retirement plan.

Soon, I’ll be writing a piece referencing a recent 20 year study showing mutual fund returns inside 401(k)’s have been less than 5% annually. And this study is used as a marketing tool. Go figure. I’ll make the study available, probably in dual form with David’s site. This study sheds light on the dirty little truth about mutual funds and their performance inside taxpayers’ qualified retirement plans.

  • Folks aren’t starting with realistic numbers. Mutual fund returns in 401(k)’s not good.
  • Front loading EIUL is best — drives down the cost of the insurance.
  • Your combined income tax rate is over 15%? Then numbers skew toward EIUL.
  • The higher the combined retirement income tax bracket, the more the numbers favor EIUL
  • EIUL never tells you when you Read more
  • 1.0 = !.0 For Most Agents — What Old School M.O. Works For You?

    I used M.O. so once and for all I can say something here in Latin. Modus Operandi — there, I said it. In simple terms it means mode of operation. In real estate parlance, you work one way, the lady down the hall works another. Same results, different M.O.’s.

    So, in the 1.0 world of generating business — closed business — what works for you best?

    Let’s limit this discussion, for the benefit of those who aren’t doing as well as they’d like, to those agents closing a minimum of 24 deals a year. And remember, 1.0 M.O.’s only. This isn’t about the 2.0 world of electronic wizardry.

    Tell us what your M.O. is. What’s generating 24 or more transactions a year for you? How’d you learn it? From whom did you learn it? Have you added your own special sauce? Are you adding other 1.0 M.O.’s to your repertoire? Are you considering increasing your efforts using the same one?

    OK — your turn — fire at will.

    What Hi-Tech Tool Helps Agents/Lenders The Most — Bottom Line Most

    Though I think I know the answer to this query, the answers might just surprise many of us. Also, it makes sense the answer for me might be third best for you, right? Hi-tech tools, not toys, are what we’re lookin’ for here. Though for some, blogs and/or websites might top the list, I’m eliminating them from the menu. For me they simply don’t qualify as hi-tech. I’m lookin’ for what you closet geeks out there are leveraging to the max.

    An incomplete list might include spreadsheets, presentation apps, Blackberrys, iPhones, data bases, and the list is almost endless.

    Or maybe there’s an office machine to which you attribute increased income. What hi-tech tool is performing like a champ in your business these days? How much impact has it actually had on your bottom line?

    For the legitimate geeks on steroids out there, what hi-tech stuff have you combined in order to build your personal Frankenstein tool? Or maybe there’s a group of apps out there that play well together.

    There’s no right answer here. Well, that’s not really the case. I think there’s a right answer, but what’s right for my operation might be on your B-List. As I’ve been known to say once or twice in the past, bottom line results is what we’re searchin’ for with this question.

    There you have it. Now, what’s performing for you from the Hi-Tech menu that’s translating into dead presidents?