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B PASHN8! 

This license plate has been on my Volvo for the past 8 years.  I recently gave my car to my church, and the DMV wouldn't let them keep the tags.  So, I received them back as a souvenir.  Actually, I was thrilled that I got to keep them. 

I put these tags on my car because I wanted to plant an idea in the heads of everyone who looked at them.  Be Passionate!  If there is one word that best describes my life, it would be passion.  I have a lot of things I'm passionate about, and I love to share my passion with anyone and everyone who will come along with me. 

When I first put the tags on the car I found that a lot of people would sit in traffic and try to sound it out.  What fascinated me most was that women almost always got it right away.  Men?  Well, the guys weren't quite quick and they tended to get distracted by the whole spectrum of what passion could mean.  Guys tended to be a little more animal and primal in their interpretation, and the ladies tended to be a little more cerebral and task oriented.  

For me, passion is the driving force that won't let me stop thinking about a plan, a new vision, a method of creating something that I've only dreamed about, a challenge that is waiting to be overcome, a goal that I am determined to accomplish, a deal that is being negotiated, an idea that is looking for wings, a hurdle that needs to be cleared.  It's my fuel for success.  Most of the things I do in life are a direct result of my own personal passion. 

I've never had a guaranteed income as an adult.  I've almost always worked for myself, and I love it that way.  Why?  Because my passion will not allow me to sit on the sidelines.  I have never been a clock puncher.  There is nothing wrong with that, but it's not for me.  I once had a friend ask, "What will you do if this venture doesn't produce enough money?"  I said, "I'll create a second source of income."  That's what passion says.   It's a power that is hard stop.

My favorite bumper sticker says, "If you ain't the head dog the scenery never changes."  I know that gnawing feeling of needing to break out of the pack and do something bold.  I think a lot of Realtors enter the profession because they are just like that.  They love their freedom, and they love to have the ability to have unlimited income based upon their own efforts.  

Passion empowers you to do amazing things.  It gives you the courage to exceed your own expectations.  It pushes you to take on projects that over your head because you know that some how you will not only succeed, but you will succeed beyond your own imagination.  I am confident that those who are passionate can do anything. 

There are plenty of naysayers in the world.  But, people who swear something can't be done are nearly always run over by someone doing it.  So, my friends, be passionate.  Have a great weekend while your doing it.

Teach Your Kids to be Financially Independent. Here's a Simple Way. 

One of the best things my wife and I ever did was put our kids on salary.  When our sons were 8 and 10 we put them on a monthly salary.  I had taught finance and investment seminars for a long time when I realized that there didn't seem to be anything out there for kids.  Then I found an amazing book.  The book was called "Debt Proof Your Kids," by Mary Hunt, and it spurred a lot of great ideas.  What if kids grew up understanding the value and use of money?  Go figure.  What a concept.

We modified Mary's ideas for our family, and it worked wonderfully.  I highly recommend the book.  Here's what we did.  From January 1 - June 30 we recorded every penny spent on the boys.  That included boy scout dues, clothes, shoes, stops by McDonalds, books, haircuts, theme parks, everything.  We averaged each boy's expenses, and on July 1st they went on salary.  Salaries ranged from $55-$70 a month at that time.  The mom and dad spigot was off. 

The deal was that we wouldn't buy them any clothes, shoes, books, pay dues, no sodas at the convenience store, no haircut money, no cash for theme parks, etc.  They would be responsible for every life expense.  If I chose to take the family out to dinner, I paid.  If they wanted to stop for a meal or soda, they paid.  If they needed a haircut, they paid.  If they wanted the new cool sneakers, they paid.  New video games, skate boards, trips to the movies or anything not initiated by me or my wife was at their expense.   We only paid for things my wife and I chose to do, and they paid for everything else. 

They were also required to save 10% and give 10% away.  So, they had to learn to live on 80% of their total salary.  In the first month, the youngest son was broke in about 2 days.  The first test of our plan came when my oldest son wanted to stop by a convenience store for a soda.  We did.  I bought one for my wife and one for myself.  My oldest son bought one, but the youngest son was busted.  No one offered the younger son a soda, and no one offered to share.  It was part of the deal.  That was probably one of the hardest things I've ever done. 

The second month, the youngest son made it to about week 2.  He did better, but he was still busted within 14 days.  Month three was much better.  He made it to the end of the month with  cash to spare.  Today, at 19 and 21, the boys are the bank.  Both boys are well on their way to financial independence.  The recession has had an unintended consequence for them. They've watched a lot of people lose everything they worked for because  they carried  excessive debt.  The boy's system has been to avoid unnecessary debt and save, and they're great at both.

Both boys have their own jobs now.  Mom and dad aren't supplying their salaries anymore, and they still save 10% and they still give 10% of their income away. The oldest son has developed into quite an entrepreneur and currently has his own business.  He's  also in college and the younger son is heading that way. 

We home-schooled the boys so scholarships are nearly non-existent.  This presents a new chapter in their financial lives.  Knowing that they will have some of their own money involved in schooling makes them a little more focused on what they will study.  Ironically, when their money is on the table they look at college with a whole different attitude.  They look at the value of what they receive in the classroom and not on college as one big party. 

Yes, we did get back involved in their financial lives once they were well established teens.  By then they were well on their way to a heathly financial life. 

If you have young children I would recommend that you pick up Mary's book and find out how to use it in your own life.  It has set my sons on the path to debt free living, and I love watching them use their minds to make things work rather than using Visa and MasterCard.  It's very exciting!  It's the one gift we gave to our kids that will last their entire lives.

Close Your Eyes So You Can See 

I've always heard that when you lose one of your five senses that the other ones become more intense.  Recently I was resting my eyes (taking a nap), and I heard a commercial on the radio that has a TV counterpart.  When I heard it on the radio I recognized it right away.  Only this time, it was different.

This time, the sound was amplified, and I heard the emotion in the voice of the speaker.  Her voice was silky smooth on the radio.  It didn't seem that smooth on TV, but there were distractions on the TV ad that I couldn't see with the radio ad.  It was the same ad.  What was the difference?  Since I couldn't see her this time my hearing was making up for my lack of sight, and it was an amazing difference.  Wow!  I was so surprised.

What does that have to do with real estate?  A lot!  When you list a house you need to list it with a buyer's senses in mind.  I recently did a walk through of one of my own listings.  I made up my mind that I was going to walk into this house as if I had never seen it, and I was going to determine why it hadn't sold yet.  I exhanged my Realtor senses for a buyer's senses, and I found a lot of things that would keep me "the buyer" from buying the house. 

So, close your eyes and listen.  Listen to something that you're already familiar with.  What did you hear that you haven't noticed before?  Now carry that into one of your listings that is moving slowly.  What do you see that you didn't see at the initial listing?  Close your Realtor senses, and open your buyer senses.  You might be surprised.

Sellers want to sell, and Realtors want to sell. So, what's the problem? 

Sellers want to sell, and Realtors want to sell. So, what's the problem? The problem is some sellers lie, and some Realtors lie (no offense to my colleagues ), and it slows down the process. Yahoo Finance posted an article today called "The 5 Lies All Home Sellers Tell." Drop by and check out the article. We've all heard it before.

But what about Realtors? Most of my friends who are in this business are awesome. I am proud to call them friends, and we do business together constantly, but there is another group. Let me tell you about my day.

I just left a client's home. She has her property listed with another company. Actually, it has been listed for over a year. In that year's time, her Realtor has never been by except to have her sign documents. There isn't even a sign on the property. There have been three showings and zero offers. The sad part about this house is that it's a great house on 82 acres of beautiful rolling hills, but it's being handled by a Realtor who would say anything to get the listing.

Here's the irony. I did all of the CMA work, research on conservation easements and laid the ground work for her to sell two years ago. I never heard from her again, a la "Dear Customer - I have a favor to ask" by Karen Crowson. A local attorney in her area recommended a different Realtor, and here she is a year plus later with nothing. That Realtor promised the moon. He would market vigorously, he would send out fliers, he swore he had five clients right then who had cash and one of them would scoop the property up right away. Baloney!

Some Realtors will say anything to get a listing, and then what? If it turns out to be hollow promises, like this Realtor's promises, the client, who is in desperate need, is left hanging and confused because she is holding on to the promises that had no substance. She believed in the recommended Realtor. She trusted his listing presentation, and he had a slick one. She was excited to get the property listed. Now, she is in financial trouble because she chose a Realtor who was only gathering listings to fluff his portfolio, and he didn't have a genuine plan for selling.

I once had a college professor who often said, "If you make a promise that something will happen you had better be prepared to make it happen." That's good advice for all of us. We should only promise what we know we can make happen because people trust us, and they need to know that we can do what we say we can do.

Time Really Is Money

Internet savvy real estate buyers are skipping the old "find a Realtor, and then find a home" process of the past. Instead, 89% start their search online and then through their individual research they find a realtor. That brings up a great question. How soon do you respond to a web based request for information?

Jeanne M. Gavish posted a great blog on this subject entitled, "How Much Time Do We Have to Respond to Online Leads?" I would highly recommend Jeanne's post as a reminder that we live in a new age of tech-first buyers who won't wait for a realtor to get back to them later that day or the next day. Time is lost money if isn't used correctly.

The Metropolitan Regional Information Systems, our MLS, posted their own article on this subject. It's obviously becoming a pet peeve with home buyers. Agents who don't return calls quickly, respond to emails immediately or answer text messages are hurting their own success in this age of smartphones, computers and wirelsss everything. The MRIS article, "Tips for shortening response time and converting more leads" offers techiques you can use to capture those priceless leads. Today, time really is money.

Is That Coffee Coming Out of Your Nose?

Alright, it's Sunday morning and I'm supposed to be in Reston, VA, riding my bicycle at the annual Tour de Cure American Diabetes Association event. But, it's raining, and it's calling for rain on and off for the rest of the morning. The TDC is an annual event that I love to support with my funds and my time, but this year is going to be a bust.

I made a commitment a few years ago to stop riding in the rain. Besides that nasty skunk stripe you get up the back of your jersey when the rear wheel kicks up road water, it can be very dangerous. It's even more so if you're going to be in an area where automobile traffic is sharing the road. One good slip and you're down. Not pretty.

So, I'm using my time to catch up on my reading. Well, I stumbled upon Gwen Banta's blog, "Homicide and the MLS (Are you killing your listings?)" post, and I found myself blowing coffee out of my nose. I'm not sure which is more enjoyable, blowing hot coffee out of my nose from laughing so hard or sliding down the asphalt on my back. Hmmmm? It's a tough call, but I think I'll go with the coffee. At least as long as it has vanilla creamer. Take a minute and read Gwen's blog, but do not, and I repeat, do not try to drink or eat anything in the process.

The Sky is Falling! Get Your Bucket!! (edit/delete)

The sky is falling, the sky is falling! According to the Chase-shiller index we have entered a double-dip economic recession. Clear Capital reported the same thing for the housing market nearly a month ago. Zillow added that home prices are dropping about 1% per month this year. The headline read, "First Quarter Brings More Dismal News For Housing Market." With that headline you can guess where the article went.

The sky is falling! Well, that's one way to look at it, or it could be the biggest buying opportunity in nearly two decades. A lot of people were priced out of the real estate boom of the early to mid-2000s. The escalating prices of available properties made it impossible for them to buy. So, they settled in and started renting. They have sat back, saved their money and now they have enough money saved to buy the house that alluded them five years ago and they have a nice down payment.

For a lot of these formerly sidelined buyers, this market is ripe for the picking. Many buyers overbought in the mid-2000s, and now the real estate landscape is littered with wonderful upscale short sales and foreclosures. It's a buyers dream.

So, for those Realtors who have been walking around with a sad depressed face, I say, "Take that sad face off, put your 'I'm going to be a top producer' face on and get out there and beat the bushes." First-time buyers and sidelined buyers have the potential to be a major force in this market turnaround.

There is another group evolving in this market. The people who were wiped out in 2008 are stabilizing and coming back into the market. This is a great group to get your investors involved with. If your investors would become short-term mortgage holders that would give this group a hand up. The real risk to the investor is the potential that the buyer may default, but many of these people were swept away by forces other than own fault. They are trying to do everything they can to get back on top of things. The worst case scenario for an investor is that he would have to foreclose. In that case, he would simply have the house he bought anyway. It's a win-win.

So, Realtors, put away that "sky is falling" umbrella, pick up a bucket and catch the rain of re-positioned buyers. The clouds are full of opportunities and it's beginning to sprinkle. We can pull this country out of this hole one buyer at a time. So, everyone, heave-ho!

"Virginia was here on this day." 

On this Memorial Day weekend, I would like to thank all of the men and women who have defended this country from its inception to the present day. It is not without great sacrifice and dedication that you have put your lives in harm's way for the promise of a peaceful return to a more simple life. Those of us who have benefited from your commitment salute you and humbly thank you for your selfless acts.

One of the greatest conversations transcribed during war came at the battle of Gettysburg between Colonel Arthur Freemantle and Brigadier General Lewis A. Armistead (a notable Virginian). That conversation is played out in the movie, "Gettysburg." Armistead reveals, in this short discourse, the very heart of Virginia. But, this dialog could have played out on a hundred battle fields since the Revolution. One of the reasons America is great is reflected in the great men and women who have sworn to defend her.

Col. Arthur Freemantle: I'm told you're descended from an illustrious military family.

Brigadier General Lewis A. Armistead: Who told you that? Kemper?

Col. Arthur Freemantle: He tells me it was your uncle who defended Fort McHenry during the War of 1812, and that he was therefore the guardian of the original "Star-Spangled Banner." I must say, I do appreciate the irony of it all.

Brigadier General Lewis A. Armistead: Colonel Freemantle... it does not begin or end with my uncle... or myself. We're all sons of Virginia here.

Brigadier General Lewis A. Armistead: That major out there, commanding the cannon... that's James Dearing. First in his class at West Point, before Virgina seceded. And the boy over there with the color guard...

Brigadier General Lewis A. Armistead: ... that's Private Robert Tyler Jones. His grandfather was President of the United States. The colonel behind me... that's Colonel William Aylett. Now, his great-grandfather was the Virginian, Patrick Henry. It was Patrick Henry who said to your King George III, "Give me liberty, or give me death." There are boys here from Norfolk... Portsmouth... small hamlets along the James River. From Charlottesville and Fredericksburg... and the Shenandoah Valley. Mostly, they're all veteran soldiers now; the cowards and shirkers are long gone. Every man here knows his duty. They would make this charge, even without an officer to lead them. They know the gravity of the situation, and the mettle of their foe. They know that this day's work will be desperate and deadly. They know, that for many of them, this will be their last charge. But not one of them needs to be told what is expected of him. They're all willing to make the supreme sacrifice... to achieve victory, here... the crowning victory... and the end of this war. We are all here, Colonel. You may tell them, when you return to your country... that all Virginia was here on this day.

I loved Debe Maxwell's post "The Longer the Shelf Life, The Less Chance You Have of Selling Your Home".  I wish I could send it to a couple of my sellers (previous and present).  In that post she demonstrated how a seller can inadvertently derail his own sale by trying to stick to an unrealistic price.  I have that same client today. 

Last year I listed a house that was what I call, "Basic Vanilla."  There wasn't anything special about the house.  It was in an average neighborhood.  It had basic features and no pizazz, but that's OK because there are a lot of people out there that can only afford a basic vanilla house.  No problem.

I receive a very generous offer in  the first 5 days, and I was elated!  The seller countered with a higher price and the buyer countered that with a slightly lower price.  At this point, I'm yelling, "Take the money and run!"  My seller, for some unknown reason, decided he wanted an extra $500.  Deal over!

He called over the weekend asking me to go to the buyer and coach him back into the deal.  The buyer would have nothing to do with it.  He was so aggravated the just wanted to move on.  Deal over, dead, blah! 

Now, 18 months later, he has another  opportunity.  This offer is 20% below the last one.  What will the end result be?  A year and a half has past with no offers.  Will history repeat itself, or will he realize that his rigid attempt to stick with his unrealistic asking price could derail another deal?  I'll let you know, but this time I'm going to be a little more emphatic about the deal. 

Will The New "Point of Contact" Plan Fix The Mortgage Mess?

Washington is at it again.  If you've ever worked with HAMP or HAFA, you already know that sometimes the cure may be worse than the disease.  Now, the U.S. Treasury is pushing a "single contact" initiative to the largest mortgage lenders using the HAMP,  HAFA and Up programs.  On the surface, it sounds like a good idea.  Once a borrower is in the process with the lender he is handled off to one person who handles his file throughout the process.  Borrowers are assigned to one person, one point of contact.  That point of contact makes sure the borrower has two methods of contact for him.  He explains all of the possibilities available to the borrower, and they work together to solve the borrowers mortgage issue.

At first glance, I thought, "This is great.  It will make things so much easier for both borrower and lender."  And then, reality settled in.  Wait a minute.  This is the same lender that loses your short sale file on 3 out of 4 attempts to submit.   It's the same lender that pays the current contact $10 an hour to answer the phone, answer your questions from a script and transfer your call to the next person who is going to hear your story.  What could go wrong?

Think about it.  This point of contact will need to understand the mortgage process from loan commitment through loss mitigation.  He will need to know state laws concerning bankruptcy, foreclosure, short sales and deed in lieu of foreclosure.  Most of the current asset managers I deal with handle up to 300 files at one time.  This person will need to handle an insurmountable number of borrower files, as well as, be the one "expert" dealing each one of those borrowers.  He will need to be available throughout the business day to any and all borrowers on his current file list.  Call centers will need to be divided to accommodate this new division for these consenting lenders.  Most mortgage providers don't consolidate bankruptcy, loan modification, short sales, foreclosure or even delinquent borrowers in the same department. That will mean more hires, more equipment, more locations and more overhead. 

I certainly don't want to pour cold water on an attempt to help with the mortgage mess we're in, but I'm not sure going back to the same people who already make problem loan issues miserable is a good fix.  I definitely agree that somewhere along the line a more streamlined process must be initiated, but is this it?  Beyond the challenges we already face with lenders, is their partner, the US government, who is on the verge of their own bankruptcy the best formulator of a sophisticated mortgage banking shift?  If they can't pay their own bills maybe they need a single point of contact in China.  I guess time will tell.

Things Your Mother Said . . .

Most of us have a list of things our mothers said to us when we were kids.  Some of those things came to pass and some didn't.  Here's a short list of the ones I've heard from my mother and the mothers of my childhood friends.

• Don't go outside without your coat on.  You'll catch your death of cold.  Mom 0 / Kids 1  (Shivered a few times, but no death.)
• Don't climb that tree you'll fall and break your neck.  Mom 0 / Kids 1
  
• If you fall out of that tree and break your leg don't come running to me.  Mom 0 / Kids 1
• Don't run in the street, you'll get run over!  Mom 0 / Kids 1
• Don't go outside with wet hair.  You'll catch pneumonia.  Mom 0 / Kids 1
• Put that BB gun down.  You won't be happy until you shoot somebody's eye out.  (Well, I never shot anybody's eye out, but I was never really happy either.  Just kidding.)  Mom 0 / Kids 1
• Don't make that face.  It'll freeze that way.  Mom 0 / Kid 1
• If all your friends were jumping off a cliff, would you jump off a cliff?  (And bungee jumping was born.  Thanks, Mom) Mom 0 / Kids 1
• Wait till your father gets home.  Mom 0 / Kids 1 (Whew!)
• You've got enough dirt behind those ears to grow potatos. Mom 0 / Kids 1  (Not a single spud.)
  
• When you grow up I hope you have kids just like you.  Mom .5 / Kids .5   (At least they've been entertaining.)
  
• Close that door.  Were you born in a barn?  Mom 0 / Kids 1 (Weren't you there?)
• If you swallow that watermelon seed you'll grow watermelons in your stomach.  Mom 0 / Kids 1   (And I thought I was just fat.)
• If you keep playing with it, it will fall off!  Mom 0 / Kids 1 (I'm not really sure what "it" was, but I'm glad to report that I still have all my parts.)
• Don't ever let me catch you doing that again!  Mom 0 / Kids 1 (Change in venue.)
  
• You should go into Real Estate.  I think you would be good at it.  Mom 100 / Kids 0  Thanks, Mom!

I didn't want to say it, but "Your baby is ugly!" 

We've all had that client who truly believes he can defy the market and list his home for 20-40% over a solid CMA value.  I get one (or more) every year who thinks there is something so extraordinary about his home that savvy buyers will simply ignore the obvious and pay too much.

When negotiating with that client you've got to be honest and tell him that "his baby is ugly." Be easy.  I know, it's painful to hear, but it's true.  Then, while he is gasping for air you can give him a list of things that may not make up that 20-40% difference in CMA values, such as:

• The love that went into the wall coverings.
• The plants his aunt Sally planted out front before she passed.
• The living room where the firstborn learned to walk.
• All of the time he spent mowing, manicuring and improving the yard.
• The pool.
• A partially finished basement with convenient drop ceiling and fluroescent lighting.
• The dog kennel out back.
• The bus stop at the end of the street.
• The hot tub.
• The neighbor who got his asking price just a short time ago (five years).
• The friend who is an expert and is advising him on housing values.
  
• Etc., etc., etc.

We all have our own list, but trying to convince an overpriced seller that his price is never going to bring a buyer is like getting a pacifier out of the mouth of a four year old.  It has the potential to be ugly, but it has to be done.  Be honest, even if it costs the listing.

Language Makes All The Difference 

I recently worked with a foreign couple, and we had moments where the language barrier between us brought everything to a crawl. It wasn't that we  were having problems with each other, but the differences in language and customs  caused us to have to take a much slower pace when communicating.

Language is important in real estate. Actually, language is important in all affairs in life, but I wonder if we take our language for granted when speaking to people from other countries.  Let me give you a simple example.   Let's take the word "Time."

We all know that we have limited time, but then again we say, "Don't worry, we have all the time in the world!" How much is that?  What about when your time is up?  Does that mean you're suspended in time?  Can time stand still?  If time stops, how can it speed up?  Or does time really fly? But, I've heard that time can slow to a crawl.  Is something really "only for a time?"  Or does it stand the test of time?  If so, who is doing the grading?  Is it possible for it to sit the test of time?  If we save time, can we use it later?  What about when we make up time?  Is that like 26 o'clock?

When we play sports we have time outs, but when that's over it's time in. We have time on the clock, but where else would it be?  Sports have time keepers.  Does that mean they get to take it home with them, and if so, do they get to keep it for a time?  Or do they have to give it back?  If they keep it, do they store it in a time capsule for a later date?  Or do they save time in a bottle?

We have daytime, but we also have nighttime. Somehow we have figured out how to have daylight savings time, but we haven't figured out how to have nightlight savings time.  Maybe that's because there is no light at night, and you need light to save time.  Is one time more important than another?  Because we have prime time.  Is that daytime or nighttime, or is it neither?  If it's neither, what is it? And, what about when we punch a time clock? Is that some sort of numerical schism between people and time.  I've also heard that time is money.  I thought time was time.  So, which is it?

It's easy to figure out what Summertime, Wintertime and Springtime are, but why don't we call the fourth season Fall-time? Is it because it sounds like an injury?  We all know when it's Christmas time, because it always follows the beginning of Wintertime.  But, Spring break doesn't always follow Springtime. There are time zones.  Does that mean there are zones without time, and if there is no time in some zones does that mean they have no time for you?  Is that a bad time?  Or is it a good time?

We're familiar with Father Time, but I've never heard of Mother Time. Is time sexist?  I know there is a delivery time which would correspond with Father Time, so there must be a mother who doesn't know what time a baby is going to arrive, but she's happy just as long as the doctor is on time and not taking time off.

Well, you see the dilemma I sometimes face when dealing with foreign clients who don't understand our use of language.  It can be real challenge.  I guess I'll stop wasting your time with this blog.  But, I hope you had a good time reading it. Hopefully, it has been time well spent, because time management is important!

Pay to Play? Show me the listings! 

I've been selling REOs since 2004.  Since the very first one, I have never signed up to sell for companies that have given me listings.  Somehow, they managed to find me out of the 100s of Realtors in my community.  I've always found that fascinating.

As the market trended down in 2007 I noticed another trend emerging.  I guess the best way to describe it is "Pay to Play."  Companies started coming out of the woodwork with grand promises of REO listings and BPOs if you would only pay $99, $199, $299 to $499 to be listed on their high octane websites.  Along with the promise of listings and BPO exposure was the promise to put your name in front of 1000s of REO companies and asset managers.

With a declining economy, who wouldn't want to be listed amongst the Nation's top REO agents?  One company promised that "they" were the primary source of information for asset managers, and for a measly $1200 your name would be at the fingertips of every important REO company.  Another more recent offer promised even more exsposure for $3500.  All you had to do was sign up, and BANG, your real estate sales would skyrocket!

Some of these companies will send an unsuspecting agent an email stating that they have a BPO in their area, but in order to receive future assignments they would need to sign up.  The agent signs up, does the BPO, collects a $50 check and pays the $199 for the privilege.   Now, I have an MBA, but I'm not a mathematician.  That really looks like the agent just paid $149 for a $50 BPO.  Once the fee is paid, the company disappears until renewal time.  No additional work shows up in between.

Well, I've turned over a new leaf for 2011.  No more pay to play.  I had a company contact me last week asking why I didn't renew.  I told them, "I don't pay for non-performance."  They immediately rolled out all the media reports of how their website was an REO generating machine, but my experience had been "Company $199 / Me $0."

I would encourage you to think before you plop down your money.  Do a little research.  See what kind of experience other agents have had with these companies.  I've never had a single company that I work with, and it's around 25, ask me for money.  On the other side, I've never had a single assignment from a company who asked for money up front.

If you would like to do REOs and BPOs you can sign up with 100s of companies that don't ask for cash up front.  Jesse Gonzales of REOPro, and Nicole Ocean, of the BPO Automation Group, offer a list of REO and BPO providers, and they include ratings of agent experiences.  You can find that link at http://bpo-companies.com/ .  Kim Knox has also made a list available on "Real Estate Community" at http://www.aareaforum.com/reo-bpo/. 

These lists are good solid roads to more work.  I spent one Saturday morning signing up with many of these providers.  At the first of the week I received 12 BPO orders from companies I had never worked with before.  It didn't cost me a dime to get the new work.  For me, I say, "SHOW ME THE LISTINGS," and then I'll show you the money.

That brings me back to my point.  I will not pay to play in 2011.  One hundred percent of the REO / BPO work I've done in the past seven years has not cost me one cent up front.  There are a lot of companies getting rich off of struggling Realtors, and I think it's time we close our checkbooks, hide the cash and say, "No More!"

What Do You Do To Keep Your Agents Motivated? 

During the early part of the roaring 2000s our office was a selling machine.  Of course, most offices were like that, but when the market began to slide into recession things slowed down.  Our broker, who was a great guy, was managing two offices.  He spent the majority of his time at the other office in a large metropolitan city (approximately 29 out of 30 days).  As the recession became more and more severe our office began to drop sales and agents.

The worse things got with the economy the worse sales got with the office.  Our broker was seldom around to encourage and inspire the office, and the agents found little enthusiasm and motivation to overcome the economic struggle the country was entering into.  Finally, a year ago that office closed.  It really was the right thing to do.  Most agents were doing little to nothing by that time.  In our former broker's defense a dozen or more offices have closed in the area.  So, it wasn't specific to our location.

There were a few of us who were highly self-motivated who simply moved on.  I actually joined that company because I was very self-motivated, and I didn't need the broker looking over my shoulder all the time.  I also didn't need weekly pep rallies to keep listing and selling homes.  I love the job.  When the office closed I started my own company and it's doing well, but my questions for you are,

"What do you, or what does your office do during hard times to keep your agents motivated and on track?  What keeps the agents excited when it becomes a real challenge to succeed in their profession?  How do you deal with the agents who need that extra boost to stay steady during slow time?"

Small Things to Help With Short Sales

A lot of agents avoid short sales because of the horror stories they hear from other agents, and I really can't blame them.  Lenders don't always make it easy to navigate the short sale process, but there are things an agent, negotiating team and the homeowner can do to keep the lenders honest and on track.

One of the great frustrations I had on my early short sales was the lender's constant insistence that they had no record of our communication.  On one particular short sale I received bank approval to proceed in a short sale, received an offer and submitted it to the bank.  When I followed up to check on the progress the representative informed me that they had no record of their approval for me to speak on behalf of the owner.   The owner and I sent the paperwork in again.  A few days later I called.  Same response.  No record of the paperwork or approval.  That went on for about 6-8 weeks.  I sent the paperwork in twelve times, and each time they said they had no record of the paperwork.  I had FedEx receipts, call logs, etc., but to no avail.

Finally, I realized that I needed a way to confirm that I had spoken to a bank representative in order to stop the constant insistence that they had no record of my calls or confirmations.  So, I started a different approach with the lender.  Once I established a contact with a lender rep on the phone I requested their first and last name, call center location, and their employee badge number or employee ID number.  If they refused to give the information I went up the chain until I found a manager or department head who would surrender the information.  I recorded the date and time down for each call, contact name and ID and the call center location.

That was the end of the constant run around about "no contact" records.  There was no way I could have an employee ID number without the employee surrendering it to me.  That confirmed that I had spoken with a lender representative.  I encourage all of my short sale homeowners to at least get that employee ID information to confirm the contact, and everyone has done that without a single complaint. 

Real Estate is Like a Box of Chocolates . . . 

You know how Forrest Gump always said, "Life is like a box of chocolates"?  Well, it dawned on me today that real estate clients are like a box of chocolates.  You know, you've got that sweet couple who you just love to see over and over.  You can't get enough of them, and when the deal is done you continue your relationship as friends.

Then you've got that one client who is like that one chocolate that no matter how many times you try it you just can't develop a taste for it.  Of course, there is always that box of chocolates that is a mystery.  Nothing is labeled, so every bite is a surprise.  You get that nutty chocolate that delights the palette, and then there is that gel thing that nobody can define.

You have your favorites, and you have the ones you like to leave in the box in the event somebody visits.  You know, those chocolates you wouldn't eat on a dare.  There are those that look yummy, but after the first bite you find that undefinable gel stuff.  Blah!  What is that?  There is always that one that brings back childhood memories of your favorite candy, and there is that one that bring memories of your crazy aunt.  

Obviously, I've spent way too much time with chocolates, but when you head off to the office today keep in mind that "Real estate is like a box of chocolates.  You never know what you're going to get!" 

Feel Alive MY Friends, Feel Alive! 

Have you ever driven through one of those automatic car washes?  You know, you drive up, pay for your wash, you're immediately signaled to drive in and at the appointed place you're signaled to stop.  Once you stop all kinds of things happen.  Water sprays, soap flies, funny looking noodle creatures rub all over your car and then the process repeats in reverse.  If all goes well, you drive out the other side with a clean car.

Well, that's the way it's supposed to happen.  One day my wife and I were working on one of our rentals and we decided to take a break.  During our break we went to the carwash.  We were third in line, so we settled in to a good conversation and waited our turn.

When the first car pulled out, the second car started up and began the process of pulling into position for the wash.  We pulled forward to second position and waited our turn.  Just about then we noticed that the car pulling forward missed the appointed spot and the lights went from red to green and a buzzer sounded.  She overshot her stopping place.  The car wash momentarily spit soap all over her car and then stopped.

She realized she had overshot the stopping place so she put the car in reverse and began to back up.  When she got to the appointed stopping place the buzzer sounded, the light went red and the car wash began spitting soap all over her car.  Did she stop?  Oh, nooooooo, she kept coming back until the buzzer sounded, the lights turned green, the sign flashed "Pull forward" and she stopped.  Now her car is covered with foaming white soap, and she realizes she has gone to far and begin to pull forward. 

This went on for about 5 mintues.  My poor wife and I are in our car laughing so hard we're crying.  By now, the lady has got her car completely covered with soap, but no water.  She hasn't landed in the right place long enough to start the car wash.  Buzzers are buzzing, lights are flashing and customers are crying,  It was quite a scene.  She finally pulled out and drove way.  She looked like a soapy kid fleeing a bubble bath. 

When she pulled away, I suddently felt a little pressure to hit the car wash just right so the car behind us wouldn't be blogging one day about the goofy guy who couldn't line up his car in the car wash.  Well, I'm glad to report that I landed in the zone and had a nice car wash. 

Life is a lot like that lady in the car wash.  Some days you drive in, stop in the right place, get your car washed and drive away like nothing happened.  It's a vanilla day, and vanilla is good.  Other days you're covered in soapy water driving down the street and you have no idea what just happened.  It's just a blur.  Ironically, it's those moments of craziness that wake you up, shake you real good and say, "Hey!"  You wake out of your routine, laugh at yourself and move on.  And, while you drive your soapy car down the street I hope you find the humor in the whole thing (even though you'd like to be invisible right then).   It's a Tutti Frutti kind of day.  They are so necessary in our lives.  They remind us to feel alive when we've fallen into a life of routine.  Feel alive my friends, feel alive!

Keeping Up With The Small Stuff (edit/delete)

When two people get married a lot of negotiating comes in to play from the moment they say, "I do."  And, it's not always the big stuff you might think that couples negotiate over.  Sometimes it's very small but important stuff.  Such as, which way does the toilet paper roll off the hanger?  Does the paper roll off the top, or does the paper roll off the bottom or does it matter?  What about toothpaste?  Is it OK to squeeze it from the middle, or is it absolutely essential to squeeze it from the bottom to top? 

What about unloading the dishwasher?  My wife has often offered to hold a family class on how to open the dishwasher door.  It appears that the males in the family (1 old one, 2 young ones, and 1 male dog) don't seem to have that process figured out yet.  But, it's not just loading it, what about unloading it?  Whose responsible for unloading it?  And then there's laundry.  Who is responsible for putting the laundry away?  Is it always mom, or should other more testosterone laiden types get involved too?

Little things.  It's the little things that make a marriage work along with the big things.  It's also the little things that make a business work.  I don't remember how many times I've called a business colleague only to leave a message that is never returned.  Sometimes, it's a little thing, but like a marriage, it is often the little things that cause so much stress.  It's irritating to call, email and text colleagues only to have them ignore or not respond.  So, what's the solution?  Well, you could leave the clothes piled up in the laundry room until you have nothing left in your closets or drawers, or you could actually call again, email or send a text.  How do we deal with little things?

I think the best response for us is to not let the little things get us down.  That can be a battle though. This morning I was talking to a good friend who is a physician.  She was telling me she would like to get out of the business.  Why?  She said the real joy she has in her work is in the patient's room.  That's where she wants to spend all of her time.  She is a wonderful physician, and it would be awful to lose her, but I do understand her dilemma. She went on to say that when she leaves the patient and closes the door behind her there is all of this stuff that hits her right in the face.  She doesn't like the little stuff.  She doesn't want to look at the books, or coordinate cleaning crews or repairmen and she frets over the people that work with her who are depending on her for their livlihood.  That may not sound like little stuff, but it's a bunch of little stuff combined to seem like big stuff.

Little stuff.  It follows us around everyday.  A tail light is out.  A kid forgets his lunch.  The car is low on gas.  The dog throws up just as you're about to walk out the door, and you're already late for a meeting.  Your computer locks up when you're dazzling a potential client with a presentation.  How do we deal with the little stuff?  Do we return phone calls?  Do we send notes, call past clients, keep our files in order and follow up with vendors and contractors? 

My life is full of little stuff.  I do pretty good with it for the most part, but sometimes it gets away from me, and that's when I find my self scrambling to catch up.  Like my physician friend, I don't like that side of business.  I like flowing along on a sea of glass with everything falling into place, all meetings kept, and kept on time and every detail complete.  When I snap out of my dream I'm reminded that this is real life, and stuff happens.

So, here's a short list of things I do (or like to do when I remember) to keep up with the little stuff:

• Make lists of tasks for the day ( I love to check things off)
• Make lists of things that are going to need to be done over the next week, month, year, etc.  Make sure dates and times are included.  I love Outlook for that feature.
• Keep a journal of every phone call, email and text.  Note what needs to be responded to right away, and note what can wait until later and make a notation to remind you to follow-up.
• Keep your files filed.
• Establish a file system that works foryou.  Mine may not work for you and visa versa.  Find a file system that makes you efficient.
• Move dead files to an out of the way place where you can get to them, but they're not in the way.
• Stay in touch with your clients; email, text, phone call, whatever.
• Educate yourself on your profession.  Are there better more efficient ways to do business (absolutely, always).
• Look for ways to cut down on tasks.  For instance, some software will do things for you on an automated schedule.  Use every tool you can find to help you cut down on little stuff.
• Keep an eye on that co-worker who annoys you with her stunning efficieny.  She may have a thing or two you can learn.  Ask her how she makes work looks so easy.  She would probably love to tell you.  People love to talk about themselves.
  
• Subscribe to forums like, well, Active Rain, where you can learn from some of the best brainiacs in the business. 
  
• Get enough food for energy, and get enough sleep to restore you body and mind for each day.
• Relax.  Kick off your shoes, watch a movie, take the dog for a walk, take a bike ride or a swim, call an old friend, read a book, look at photo albums, you get the idea - get away from work.
• And most of all, put that toilet paper roll on so the paper comes off the top!

Keeping Up With The Small Stuff (edit/delete)

When two people get married a lot of negotiating comes in to play from the moment they say, "I do."  And, it's not always the big stuff you might think that couples negotiate over.  Sometimes it's very small but important stuff.  Such as, which way does the toilet paper roll off the hanger?  Does the paper roll off the top, or does the paper roll off the bottom or does it matter?  What about toothpaste?  Is it OK to squeeze it from the middle, or is it absolutely essential to squeeze it from the bottom to top? 

What about unloading the dishwasher?  My wife has often offered to hold a family class on how to open the dishwasher door.  It appears that the males in the family (1 old one, 2 young ones, and 1 male dog) don't seem to have that process figured out yet.  But, it's not just loading it, what about unloading it?  Whose responsible for unloading it?  And then there's laundry.  Who is responsible for putting the laundry away?  Is it always mom, or should other more testosterone laiden types get involved too?

Little things.  It's the little things that make a marriage work along with the big things.  It's also the little things that make a business work.  I don't remember how many times I've called a business colleague only to leave a message that is never returned.  Sometimes, it's a little thing, but like a marriage, it is often the little things that cause so much stress.  It's irritating to call, email and text colleagues only to have them ignore or not respond.  So, what's the solution?  Well, you could leave the clothes piled up in the laundry room until you have nothing left in your closets or drawers, or you could actually call again, email or send a text.  How do we deal with little things?

I think the best response for us is to not let the little things get us down.  That can be a battle though. This morning I was talking to a good friend who is a physician.  She was telling me she would like to get out of the business.  Why?  She said the real joy she has in her work is in the patient's room.  That's where she wants to spend all of her time.  She is a wonderful physician, and it would be awful to lose her, but I do understand her dilemma. She went on to say that when she leaves the patient and closes the door behind her there is all of this stuff that hits her right in the face.  She doesn't like the little stuff.  She doesn't want to look at the books, or coordinate cleaning crews or repairmen and she frets over the people that work with her who are depending on her for their livlihood.  That may not sound like little stuff, but it's a bunch of little stuff combined to seem like big stuff.

Little stuff.  It follows us around everyday.  A tail light is out.  A kid forgets his lunch.  The car is low on gas.  The dog throws up just as you're about to walk out the door, and you're already late for a meeting.  Your computer locks up when you're dazzling a potential client with a presentation.  How do we deal with the little stuff?  Do we return phone calls?  Do we send notes, call past clients, keep our files in order and follow up with vendors and contractors? 

My life is full of little stuff.  I do pretty good with it for the most part, but sometimes it gets away from me, and that's when I find my self scrambling to catch up.  Like my physician friend, I don't like that side of business.  I like flowing along on a sea of glass with everything falling into place, all meetings kept, and kept on time and every detail complete.  When I snap out of my dream I'm reminded that this is real life, and stuff happens.

So, here's a short list of things I do (or like to do when I remember) to keep up with the little stuff:

• Make lists of tasks for the day ( I love to check things off)
• Make lists of things that are going to need to be done over the next week, month, year, etc.  Make sure dates and times are included.  I love Outlook for that feature.
• Keep a journal of every phone call, email and text.  Note what needs to be responded to right away, and note what can wait until later and make a notation to remind you to follow-up.
• Keep your files filed.
• Establish a file system that works foryou.  Mine may not work for you and visa versa.  Find a file system that makes you efficient.
• Move dead files to an out of the way place where you can get to them, but they're not in the way.
• Stay in touch with your clients; email, text, phone call, whatever.
• Educate yourself on your profession.  Are there better more efficient ways to do business (absolutely, always).
• Look for ways to cut down on tasks.  For instance, some software will do things for you on an automated schedule.  Use every tool you can find to help you cut down on little stuff.
• Keep an eye on that co-worker who annoys you with her stunning efficieny.  She may have a thing or two you can learn.  Ask her how she makes work looks so easy.  She would probably love to tell you.  People love to talk about themselves.
  
• Subscribe to forums like, well, Active Rain, where you can learn from some of the best brainiacs in the business. 
  
• Get enough food for energy, and get enough sleep to restore you body and mind for each day.
• Relax.  Kick off your shoes, watch a movie, take the dog for a walk, take a bike ride or a swim, call an old friend, read a book, look at photo albums, you get the idea - get away from work.
• And most of all, put that toilet paper roll on so the paper comes off the top!