There’s always something to howl about.

Category: Realty Reality (page 5 of 16)

Over $100? You Better Improve My Friggin’ Bank Account!

I was inspired to write this post as I read the comments on Brian Brady’s recent post on Cyber Pros… The conversation turned to the relative value of various barcamps, seminars, and conferences. As you might’ve guessed I have some thoughts on the subject. Go figure.

I’ve attended seminars etc. since the mid-70’s. Back then, and until the internet created its own mushroom cloud of ‘experts’, they existed for the sole purpose of sending you back home better off than when you arrived. In those days the seminars were taught by the giants of the industry. I spent much of my late 20’s attending seminars in awe of the speaker. Unfortunately that’s not so these days.

From 1976 through about 1999 I was able to rely on coming away with much more than fool’s gold or networking opportunities when I laid my money down on seminars, or conferences. The gold standard (pun intended) was in 1980 when I completed the intense/expensive six day long CCIM courses, all five of them then. The info I learned and applied in those five weeks was phenomenally effective, salient, and results oriented. They were there to teach — and let the chips fall where they may. The failure rate for CI 101 back then was about 50% — with an open book final. That’s real. They didn’t, and still don’t tolerate posers.

I don’t know a single soul from those courses to this day.

Of course, if I’d taken them recently, that wouldn’t be the case. I’d of been better off having networked with classmates. But given the choice of either or? Give me the information, the knowledge, the ability to successfully apply every time. Though I attended investment real estate seminars like a groupie back in the day, nothing impacted my ability to produce positive results for my clients and my business more than the CCIM classes. Nothing, not even close.

I’ve been to a couple barcamps. The cost is usually so low, from free to $100 or so, that if I take away the proverbial ‘one nugget’ plus the cool networking, I’m a happy ‘camper’. I Read more

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

In Like A Lion – Out Like A Lamb – 15 Minutes Of Fame Is Almost Over

Infamous Real Estate Investor Casey Serin Puts His Web Domain On Ebay

Many of you might remember Casey Serin from a few years ago – a young man who watched too many late night infomercials and bought too many courses from gurus who taught the so-called “secrets” of making the big bucks in real estate – a young man who ventured out and purchased and eventually lost some eighteen or so homes, many of them to foreclosure. He went from zero to negative hundreds of thousands of dollars in no time flat.

Casey was quite the character with his online accounts of his impending doom on his blog Iamfacingforeclosure.com – a blog where he chronicled his dealings on selling his houses by short sale before the lenders foreclosed on them – to an audience of not-always-so-adoring fans who would post some rather scathing comments on his blog with great regularity. His day-to-day existence was a source of vicarious pleasure for many – a lot like witnessing a train wreck in slow motion.

His blog provided such a detailed account of his obvious repeated instances of mortgage fraud that it ultimately had to come down, it was just a matter of time.  Oh there’s much more to that story – you can Google it – and to be honest, I’ve forgotten the bulk of it already. Honestly, I thought Casey was off the stage. For good. Forever.

He has gone through some various machinations chronicled in Wikipedia – and his last gasp of public persona might be the sale of the domain that he set up ostensibly to blog about penny stocks, as evidenced by his listing on Ebay. I guess when you’re no longer detailing your crimes in real-time, nobody really cares anymore.

Casey’s tale of woe was the type of a story that needed a Howard Beal kind of crescendo and ending – perhaps streaming video of the Feds breaking into his apartment to take him away Elian Gonzalez-style, or something else equally as riveting and bizarre.

No, it’s finally over for Casey. He rode that pony of fame for all that it was worth – Read more

R.com – Finally a bailout that interests me… ;-)

I am not a fan of the recent bailouts. (Too many reasons…Let’s don’t go there.)

But Russell Shaw put forth a bailout plan that has intrigued me. You see…the stock market being low has its advantages. Now’s the time to buy back REALTOR.com, NAR. You should be able to get it for a song.

Additional note: Some person named Torb had the audacity to comment on Russell’s post saying that we did not know about how much it costs to pay the engineers who design the site, write the software, blah blah blah…

Well, thanks to the miracle of public companies, the SEC and enquiring minds that want to know…YES WE DO. (grin) According to Move, Inc.’s 10K report for 2007 (dated February 29, 2008), it was $34,656,000 …give or take. And that was for MORE than REALTOR.com. That included Move.com, Moving.com, and TopProducer (a sister company under the Move Inc. umbrella). So that means (in English) that REALTOR.com was only a FRACTION of that. Since I only have access to the consolidated financials, that is as far as I can break it down.

If I said that REALTOR.com was 50% of the engineers would I be too far off? I don’t think so. Let’s just make it an even $20 mil for grins. (It is less IMO, but I am in a generous mood.)

OK, Torb..but those engineers have to be supervised, right? OK, general and administrative expenses were almost $81 million compared to that +/- $35 million. And hang onto your hat…on the same financials, Sales and Marketing Expenses were $108,633,000. Much of those sales and marketing dollars were directed towards marketing AT REALTORS…that’s a LOT more than the guys coding the sites got! Did y’all really need THAT much supervision and sales??

If we did a bailout, wouldn’t much of that be SAVED? (Methinks..YES!)

Torb? If you are looking close I will help you with some other accounting fun…you ready? How many REALTORS are there in NAR? Well, let’s just say that we suffer big losses in our industry and go back to the scary number of 1 MILLION.

And then let’s go back Read more

Think Your Taxes Are Going Down? Think Again

In A Few Years We’ll Be Calling These Days The Good Ol’ Days

Some believe that in the coming administration, their taxes will be lowered. Some even believe that they won’t have to worry about buying gas… or paying their mortgage… as Obama will make sure that all is well.

Let me tell you how the cow will eat the cabbage.

As of this writing, the federal government has pumped $2 trillion into places of which – thus far – they will not even divulge where the money is going. Keep in mind that is $2 trillion during a so-called “conservative” administration. At this rate, we will soon see a big spike in inflation as our money loses even more of its value. Our dollar has lost 27% over the last eight years… and these bailouts are nothing more than the government printing money – therefore making the remaining money supply worth that much less.

One of the changes that will take place at the end of the year is the revision of the capital gains exclusion – a change that will not benefit the taxpayer. Current tax law provides a $250K exclusion ($500K for married couples) from capital gains taxes on a primary residence that the taxpayer lived in for two of the previous five years. The new law will prorate the exclusion based upon how many years the taxpayer actually lives in the home.

Meanwhile, the inflation from the printing presses at the Treasury is going to cause a rise in the prices of everything – food, commodities, wages, housing… you name it. Higher wages will result in higher taxes due to the phenomena of bracket creep… and although real estate will rise in real value, it’s value on paper will appear to be much greater due to this inflation.

As many have noticed over the last ten years, property taxes have gone up as a result of tax assessors using higher property values as a means to get more money for the government coffers… and now as property values are declining, those same assessors are not interested in lowering those taxes. In many cases, 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

My Treat

Every so often, Mona and I attend to a close friend’s First Grader while the single mother does her required corporate traveling gig for one of the remaining Fortunate 100 oligopolies. During these few time warped days each month I am thrust into grandfatherly duties which I find to be almost Dali-esque as I, at age 52, can still recall a good portion of my own first school years with vivid, if not shocking clarity–at least the surreal parts; unlike my youngest sister who refers to her similar childhood in the same household as ‘those blacked-out years.’ (And yes, to this day, we both refuse formal therapy, and meds, my sis and I.) Melting timepieces, I’m telling you.

I have nieces, too, who visit Chicago once a year—one teen (demure and traditional) and one pre-teen (iconoclastic from her very first breath). Both lovely, if not opposite in all but genetic ways. I have one daughter (history teacher) who is now 30 and lives out of state and one step-son (a sommeliere) who is 25 who lives in another world. There are some neighborhood kids, of course… and that’s pretty much it. Most of the other unattached people I hang with have already lost most of the hair they will ever lose and, for some consistent reason, are long term participants in one type of 12 Step Program or another–their respective youths totally exhausted; sucked dry to the bone, long ago and far, far away. In other words, I just may lack the experience needed for these incremental domestic duties I’m called upon to perform on occasion. I’m too soft a touch and frankly, don’t have the energy to exert discipline anymore. Just don’t burn down the house or torture the dog. Easy on the cat, too. Pretty expansive boundries, I would think, even for someone as indifferent and mortally aware as myself. But for some odd reason, I think of children as living on forever.

“Uncle Geno, can I have another candy bar?”

“Sure. I don’t care.”

“Can I play with your iPhone?”

“Sure. Just don’t drop it in the toilet.”

“Can I run off with Read more

Greed is Good: How the Rich Get Rich

I think Gordon Gecko was on to something, greed is good. In fact, the combination of greed and fear are even better, or at least they are telltale signs, it seems – for when to enter or exit the market.

Amidst the financial turmoil, Charlie Rose recently interviewed Warren Buffett regarding his thoughts regarding the financial crisis we’re facing as well as to discuss his $3 Billion investment in GE.

A Conversation with Warren Buffet courtesy of Charlie Rose

I happen to like Warren Buffett a great deal. He’s smart yet humble. Sometimes it is difficult to believe that this folksy cornhusker is a billionaire. When Warren pulls the trigger on an investment – and they are generally not small in size – people stand up and take notice. Clearly, you don’t become the wealthiest American by shooting from the hip.

Headlines today indicated that Warren is telling everyone to buy US stocks. Perhaps you’ve heard his quote – I’ll paraphrase:

When people get greedy he gets fearful, when people get fearful, he gets greedy.

I was left with a certain level of confidence despite the current financial and housing crisis – Warren is investing – again, not alittle – but alot. He’s not waiting on the sidelines, he’s investing now. Our stock and housing markets are ripe with opportunity.

Granted we’re all not blessed with billions – but interestingly enough, those who do have the resources should be investing – not in the future – but now. There is and will continue to be turmoil, however, as Warren stated, it is best to be approximately right rather than precisely wrong.

My take and my advice to my investor clients as well as those who are holding out for “the deal of a lifetime”. I think we’re approximately there.

Could prices fall further? Yep, I think they might – but would you rather buy with an approximate risk or some further loss or miss the opportunity all together?

Perhaps this is the most simple example of exactly how the rich get rich. When the majority sit Read more

Prom night in Dayton: Politicians pucker up, but I’m keeping my assests close to home.

Ah yes, it’s an election year. How do I know for certain? As Jeff Brown, who’s married to a native Ohioan- smart guy- recently twittered to me: “Ohioans’re gonna be very popular in the next 9 weeks. As usual, you guys are the babe at the prom without a date.”

Every four years we are courted and kissed by those same folks who forget we are here the rest of the time. I don’t welcome or enjoy the attention. I wish the federal government would forget we are here completely. I don’t want to be trotted out as an example of what went wrong with this or that administration. Don’t use Dayton to push your agenda and don’t use Dayton to make yourself feel good. Don’t do me any favors.

Dayton native Emily Langer wrote an article, Excuse Me, But I’m From Ohio, in the Washington Post today, accurately describing the strange political position in which Ohio, and the Midwest, finds itself every four years. In part:

Presidential candidates, in their efforts to look like regular folks, are among the chief purveyors of one of the most destructive stereotypes of Midwesterners: the working stiff who can’t work, thanks to the Rust Belt hemorrhaging all those jobs. During a campaign stop in Youngstown, Ohio, 2004 Democratic nominee John F. Kerry set up shop outside a boarded-up building so that photos and television footage would show the city’s “ugly rump,” as the New York Times wrote, rather than the new office building across the street. No hard feelings, senator. The voters of Youngstown understood: It was easier for you to show that Ohioans needed your help if you pretended that they couldn’t help themselves.

Reporters do their part as well, stocking their dispatches from the Midwest with caricatures of down-at-the-heels factory workers and embittered waitresses. If you read enough of that prattle, you might start to wonder: Don’t these people have anything better to do than sit around carping about NAFTA? Don’t they know that McCain was just being honest when he said that some of Michigan’s vanished jobs won’t reappear? And by the way, don’t they Read more

A Proposal to Improve Mortgage Lending….

Since there are a variety of licensing, regulation, education, criminal background check proposals bouncing around in an effort to clean up the mortgage world, I thought I’d throw out my own proposal on how to improve mortgage lending.

I’m proposing that as part of the training for becoming a mortgage lender, all originators be required to spend a minimum of 6 weeks working with a Realtor full time.  They would be required to essentially job shadow the Realtor in every aspect of the business.   What would they learn during their time?

  1. They would learn that Realtors don’t get weekly paychecks, they only get paid when they sell a house.
  2. They would learn that Realtors have many people putting pressure on them to “get the house closed.”   The seller wants to close so they don’t have to make another payment on it.  The buyer wants to close so that they don’t have to move twice.   The Realtor’s wife wants them to close so she has the money to buy groceries.   The Realtor’s daughter wants them to close so that Dad can buy her the stuff that she needs to “look good” going back to school.    The Realtor’s bank wants them to close so that he can make the payments that need to be made on the _______ (fill in the blank – car loan, lease, house payment, home equity payment).
  3. They would learn that there is a lot more to marketing a house that is for sale than a sign in the yard and a listing in the MLS.
  4. They would learn the intricacies of negotiating a purchase agreement and have a much better handle on the dynamics of the relationship between buyer and seller and the ways that a lender can avoid disturbing those relationships.
  5. They would realize that many Realtors care deeply that their buyers and sellers make wise decisions when they are buying or selling and aren’t just focusing on “how much can I make.”  Unfortunately, not all of them are focused that way.
  6. They would realize that there is a lot more that goes into determining what price to list a house at than the 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 New Real Estate Model – Part 3.2: Patrick, Dunne & Purcell, A Real Estate Firm

A Real Estate Firm based on the legal model could have many looks, as do actual law firms.  But for a starting point I am going to lay out an achievable structure that will accommodate the greatest majority of agents.  The firm would consist of three distinct levels as well as an administrative staff.

  1. In the top level are the named agents: let’s say Ms. Patrick, Mr. Dunne and Mr. Purcell. These are the founders of the firm and generally speaking they are all three tremendous rain makers. They have a large and active client base from which they receive a tremendous amount of referral business.  It is also quite likely that one or more of them has a strong presence in a niche area.  They are not only the face of the firm, but it is their style and personality that colors the firm’s corporate vision.
  2. Under the named agents are the partner agents.  It is within this level that we see so much of the communal benefit that Mike Farmer has written about.  Similar to the named agents, partner agents bring in a lot of transactions.  They also may have areas (geographic, industrial, network, etc.) of specialty.  These agents have reached a level reminiscent of tenure.  They share ownership of the firm as well as decision making duties and have a say in its direction.
  3. The associate level is where the greatest number of agents are found.  From fresh beginners to agents with years of experience.  The associate level is also the workhorse of the firm.  Associate agents are not only working hard to take care of clients assigned by the partners, but are at the same time trying to impress the partners with business they generate themselves.  The presumed goal of an associate agent is to be made partner.
  4. Finally, there is an administrative staff which grows as the firm’s growth dictates.  It could be as simple as one administrator or as complex as a multiple level staff covering everything from answering the phones to creating the marketing to processing the transactions and more.  Staffing might be the one place where someone Read more

The New Real Estate Model – Part 3.1: The Solution

This final post (Part 3) grew rather lengthy.  Considering the fact this has already stretched into a three-part series, I chose to extend the series to five rather than attempt a conclusion of  somnolent proportions.  If brevity is the soul of wit, creating a new model for real estate is witless.  So grab a cup of coffee or your favorite bagel and settle in.  Fairly warned be thee, says I…

The Preamble
In Part 1: Disbrokeration, I looked at the problems that exist within the current, brokerage-based real estate model.  The shift to a 2.0 world is making the traditional position of broker obsolete.  The tax advantaged laws that helped create this model now create a drain on the industry and the level of professionalism is widely perceived to be at an all time low.  This is a topic of some concern, as the most popular response to the current state of affairs is more legislation, more licensing and more efforts to validate capability through pernicious membership rather than actual results.  As Big Al said: “We cannot solve our problems with the same thinking we used when we created them.”

In Part 2: Super Teams, I looked at a natural progression that is already occurring in our industry: Real Estate Teams.  I took that notion further and looked at how a Super Team might be constructed.  There was also a link to some great writing on the concept by Mike Farmer.  There are some problems with the Super Teams though.  They do not go far enough in dealing with issues of independent contractor status, education, professionalism and image.  Their success depends upon either a self-less communal work effort or a strong, unique figurehead to hold all the pieces together.  The former is not realistic across an entire industry and the latter is too uncommon.

The Outline
It is time to outline a new model for the real estate industry.  I believe the following to be a reasonable list of minimum expectations:

  • The new model should account for the natural desire in many people to achieve.  It might even embrace the concept that a great many people enter Read more

My Mind Share Mis-management Manifesto

Eric Bramlett and I have been playing with Google’s upgraded adwords tool quite a bit lately. Not surprisingly here’s one of the first things that crossed my mind…

And while the numbers would indicate that Trulia CLEARLY has not created much in the way of brand awareness in the consumer ranks (think about it 60,500 searches in June and how many of those were REALTORS?). And while I could make SEVERAL valid points to their VC’s about how that is not a great reason to throw another $15MM log on the fire, that is not the subject of my manifesto. This is:

NAR: WAKE THE HECK UP!

You currently have the REALTOR brand. It is strong. You can see that people are clearly searching for REALTORS. (See MLS to see how you mangled the last one) You are mismanaging the online use of that REALTOR brand in a MAJOR way. Homestore is squandering the brand by using the quality of the online presence to extort money from the REALTORS themselves.

Look at the figures that Bramlett posted. Read them Lawrence. (please) What do they say? IMO they say that people are looking for REALTORS. They say that if we FIRED Homestore and made the national listing site a NON PROFIT center for NAR, we could do better. Much better. Yes that would mean some staff cutbacks in the bureaucracy. High time that happened anyway.

The main reason that we have REALTORS giving listings to third party sites with so little consumer mind share as Trulia is because REALTOR has mangled them and is holding the REALTOR hostage. I cannot blame Trulia for trying to move into a space where Homestore has abdicated it’s position…a monopoly position granted by a fiat of well intentioned (but IMO highly misguided) leaders at NAR.

Our listings were not yours to sell IMO. And if somehow we granted you that right, unless you dump Homestore or get them to start taking our online presence seriously, you have proven IMHO beyond all doubt that we the REALTORS should now take that right back from you. You have mismanaged it.

What do I Read more

Brainstorming – an attempt to tap the collective wisdom of the readership….

Okay, I want to try to do a little brainstorming here.   Let me lay out what I’m thinking….

I had a conversation (about an hour and a half long) with a local Realtor who has been in the business for over 20  years.   We were talking about the current state of the housing and financial markets.   She made a comment and raised a question that I’ve got my own thoughts on, but I’d like to hear from the collective wisdom of the group.

The comment that she made was this:   “I think that the majority of our clients and consumers as a whole don’t have a clue as to what’s going on in the economy, what’s going on in the housing market and what’s going on in the banking world.”

The question she had was:  “What can we, as Realtors and lenders, do to educate and inform people in our markets so that they can wisely navigate through the market that we’re in?”

That got me thinking, are we, as the professionals who really understand (more than most) what’s happening in the market, really doing what we should to help people who want or need to either buy, sell or refinance in today’s turbulent markets?

I’d love to hear what the group has to say.  What are  you doing?   How’s it working?   I’m hoping we can raise the bar for all of us and help us all be better advocates for our clients.

What do you think?

Thanks in advance,

Tom Vanderwell