Blog

So, how many agents are leaving the industry due to lack of
work? Have you ever stoped and asked yourself that question? Most likely not
but, I did this week because a friend of mine who owns their own real estate
brokerage told me that he is expecting that by the end of this year, his office
is going to shrink......so much so, that he may actually close his doors.

You see, many, if not all brokerages are built around
reoccurring revenue streams brought in by the agents. Obviously, I am not going
to go through every single office business plan I know of but, ultimately they
all revolve around either one of two...or both of these ideas.

Idea # 1: High
monthly fee and little to no commission split. These offices charge agents a
high monthly fee....like $500.00 a month or so and, yes...that is high in my
area. Now, these offices don't really care if the agents on their roster do any
business at all because, the broker is paying bills and making money off the
monthly fee. Normally, in these offices, the broker isn't making any money on
commissions anyways so, he is working for just that monthly fee.

Idea # 2: Low to
no monthly fee and high or graduates commission splits. These offices make the
bulk of their money on the performance of the individual agent. These offices
will typically charge little to no commission splits however, they typically have
a skeleton staff and expect the agent to be able to handle most all issues with
little to no broker involvement.

Now, as you can
expect, plenty of pros and cons with either major model however, what happens
to these models when the number of agents in the industry or in local markets
begin to dry up?

Well, the
competition for agents becomes more fierce and these 100% or low monthly fee
offices begin attracting a lot of agents. Much like we have now in my market.
The problem is these office typically attract the type of agents that most
people should steer clear of. Now, granted, this isn't true in every market and
this is strictly my opinion however, my experience is that before a agent truly
gives up on their business they go into the Realtor Death Spiral. Yes, this is
a phrase I just thought up.

So, what is the
Realtor Death Spiral? Ok...so, here it is. It's when you have a Realtor who has
been struggling the past few quarters and is now having to make a decision. Do
I stay in the business or do I go back to do what I know how to do? You see,
most Realtors, 99% of us, didn't grow up thinking...oh, I want to be a Realtor.
We grew up thinking, I want to be a fireman, a police officer, a marine or in
my case, a secret service agent...yes, that is true. My point is, we all came
from another industry and we either fell into real estate because we had a
friend who was selling their home or it was a part time "job" for
vacation money or...whatever reason you can think of other than, I want real
estate to be my career.  With all that
said, it means that many of us....almost all of us thought to ourselves, well,
if I can't make it big and live like Donald Trump, then I will go back to
teaching, being a stay at home mom or steel worker.

Now, let's look
at the graph above...yes, I pasted that in here for a reason. The graph is the
latest information I could find from the National Association of Realtors on
the number of Realtors by year. Look closely at the nose dive in the past 4
years. You see, the graph clearly shows that when real estate was good.....or
easy, people were becoming Realtors left and right. In fact, if you look at the
graph just a little closer, see how we doubled the amount of Realtors from2000
to 2006. That's right people, in 6 years, we doubled the number of people in
our industry. Now, consider that when I tell you that back in 2007, NAR release
a statistic that said something to the effect that 93% of all Realtors, DID NOT
CLOSE MORE THAN 3 DEALS A YEAR! In fact, I read at one time that the average
income of a Realtor was like $26,000.00....that's not even a million dollar in
sales in my area.

Well, I will
leave it up to you to come to your own assumptions and conclusions however, I
am of the mindset that our industry does need to do some "house cleaning"
if you will. In fact, I venture to say that as the housing bubble was blowing
up so was the rank and file Realtors and now, as the bubble is busting....those
same agents are looking at themselves in the mirror and saying, "Damn,
this is much harder, much more expensive, much more involved than I thought or
ever experienced it really was". Yes, we are going to start seeing a mass
exodus of agents from our industry, in fact, many of us in the industry have
noticed this for the past 2-3 years. I must admit, I am glad to see it.
Personally, I am sick and tired of dealing with agents who have been in the
business for 3,4,5 years, sold 3-5 homes a year, has a full time or part time
job in another industry and then complains that they want to do REO and no one
will help them get into the business or that they attended some conference but,
they had no ROI.

Our industry
needs to purge the part time agent. These agents don't do much for our
industry. Yeah, maybe they have a place and time but, it's not now. Now, we
need to get back to professional standards, common sense and the Realtors who
are here, participate, contribute and improve our opus.

Now, don't get me
wrong, people got to pay bills, people got to do what they got to do in a
country with an unemployment rate of 9.1% but, let's make sure we are all
looking at this with an ounce of perspective. Let's make sure when we see
brokerage office closing, or agents retiring their license that we stop and
realize, fortunes are made in times of recession and those who can survive
deserve to be here and reap the rewards of their commitment.

So, how many agents are leaving the industry due to lack of
work? Have you ever stoped and asked yourself that question? Most likely not
but, I did this week because a friend of mine who owns their own real estate
brokerage told me that he is expecting that by the end of this year, his office
is going to shrink......so much so, that he may actually close his doors.

You see, many, if not all brokerages are built around reoccurring
revenue streams brought in by the agents. Obviously, I am not going to go
through every single office business plan I know of but, ultimately they all
revolve around either one of two...or both of these ideas.

Idea # 1: High
monthly fee and little to no commission split. These offices charge agents a
high monthly fee....like $500.00 a month or so and, yes...that is high in my
area. Now, these offices don't really care if the agents on their roster do any
business at all because, the broker is paying bills and making money off the
monthly fee. Normally, in these offices, the broker isn't making any money on
commissions anyways so, he is working for just that monthly fee.

Idea # 2: Low to
no monthly fee and high or graduates commission splits. These offices make the
bulk of their money on the performance of the individual agent. These offices
will typically charge little to no commission splits however, they typically
have a skeleton staff and expect the agent to be able to handle most all issues
with little to no broker involvement.

Now, as you can
expect, plenty of pros and cons with either major model however, what happens
to these models when the number of agents in the industry or in local markets
begin to dry up?

Well, the
competition for agents becomes more fierce and these 100% or low monthly fee
offices begin attracting a lot of agents. Much like we have now in my market.
The problem is these office typically attract the type of agents that most
people should steer clear of. Now, granted, this isn't true in every market and
this is strictly my opinion however, my experience is that before a agent truly
gives up on their business they go into the Realtor Death Spiral. Yes, this is
a phrase I just thought up.

So, what is the
Realtor Death Spiral? Ok...so, here it is. It's when you have a Realtor who has
been struggling the past few quarters and is now having to make a decision. Do
I stay in the business or do I go back to do what I know how to do? You see,
most Realtors, 99% of us, didn't grow up thinking...oh, I want to be a Realtor.
We grew up thinking, I want to be a fireman, a police officer, a marine or in
my case, a secret service agent...yes, that is true. My point is, we all came
from another industry and we either fell into real estate because we had a
friend who was selling their home or it was a part time "job" for
vacation money or...whatever reason you can think of other than, I want real
estate to be my career.  With all that
said, it means that many of us....almost all of us thought to ourselves, well,
if I can't make it big and live like Donald Trump, then I will go back to
teaching, being a stay at home mom or steel worker.

Now, let's look
at the graph above...yes, I pasted that in here for a reason. The graph is the
latest information I could find from the National Association of Realtors on
the number of Realtors by year. Look closely at the nose dive in the past 4
years. You see, the graph clearly shows that when real estate was good.....or
easy, people were becoming Realtors left and right. In fact, if you look at the
graph just a little closer, see how we doubled the amount of Realtors from2000
to 2006. That's right people, in 6 years, we doubled the number of people in
our industry. Now, consider that when I tell you that back in 2007, NAR release
a statistic that said something to the effect that 93% of all Realtors, DID NOT
CLOSE MORE THAN 3 DEALS A YEAR! In fact, I read at one time that the average
income of a Realtor was like $26,000.00....that's not even a million dollar in
sales in my area.

Well, I will
leave it up to you to come to your own assumptions and conclusions however, I
am of the mindset that our industry does need to do some "house
cleaning" if you will. In fact, I venture to say that as the housing
bubble was blowing up so was the rank and file Realtors and now, as the bubble
is busting....those same agents are looking at themselves in the mirror and
saying, "Damn, this is much harder, much more expensive, much more
involved than I thought or ever experienced it really was". Yes, we are
going to start seeing a mass exodus of agents from our industry, in fact, many
of us in the industry have noticed this for the past 2-3 years. I must admit, I
am glad to see it. Personally, I am sick and tired of dealing with agents who
have been in the business for 3,4,5 years, sold 3-5 homes a year, has a full time
or part time job in another industry and then complains that they want to do
REO and no one will help them get into the business or that they attended some
conference but, they had no ROI.

Our industry
needs to purge the part time agent. These agents don't do much for our
industry. Yeah, maybe they have a place and time but, it's not now. Now, we
need to get back to professional standards, common sense and the Realtors who
are here, participate, contribute and improve our opus.

Now, don't get me
wrong, people got to pay bills, people got to do what they got to do in a
country with an unemployment rate of 9.1% but, let's make sure we are all
looking at this with an ounce of perspective. Let's make sure when we see
brokerage office closing, or agents retiring their license that we stop and
realize, fortunes are made in times of recession and those who can survive
deserve to be here and reap the rewards of their commitment.

AIG tries to payback the bailout money and the fed says no?

Federal Reserve Bank of New York and BlackRock (BLK: 196.10 -0.95%) sold $1.3 billion of subprime mortgage bonds the Federal Reserve acquired from AIG upon bailing out the insurer three years ago.

The sale of the bonds came after the Fedearl Reserve rejected a bid from AIG to repurchase all of the assets in the Maiden Lane II portfolio for $15.7 billion.

 Richard Fisher, president of the Federal Reserve Bank of Dallas, said the central bank's "duty is to get the best returns on any investment and to do that in a responsible way."

 According to the Fed's website, it announced an offering of $1.5 billion in former AIG securities assets this week.

The Fed chose to have BlackRock sell the assets off in smaller pieces under the notion it would produce a higher profit for taxpayers.

The ACLU (The American Civil Liberties Union) filed a petition with a Florida appellate court this month.

The 20th Judicial Circuit Court in Lee County, Florida.They are trying to stop the court from pushing foreclosure cases onto a mass docket that was designed to quickly handle an influx of foreclosure cases.

I couldn't believe with the problems of the last year this could even be a thought in anyones mind. We have to make sure all the foreclosures are heard fairly that is why we have a court system.

All of this at a time when there are reports out that the OCC is set to announce a foreclosure settlements the settlements are with major mortgage servicers over recent foreclosure problems and this will entail from multi-billion dollar fines to forced principal reduction and stricter emphasis on pursuing modifications.

OCC according to Wikipedia:

The Office of Thrift Supervision (OTS) is a United States federal agency under the Department of the Treasury. It was created in 1989 as a renamed version of another federal agency (that was faulted for its role in the Savings and loan crisis). Like other US federal bank regulators, it is paid by the banks it regulates. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.

The OTS also expanded its oversight to companies that were not banks. Some of the companies that failed under OTS supervision during the Financial crisis of 2007-2010 include American International Group (AIG), Washington Mutual, and IndyMac.

The OTS was implicated in a backdating scandal regarding the balance sheet of IndyMac. Reform proposals from Henry Paulson, Barack Obama, and the U.S. Congress have all proposed to merge the OTS with the Office of the Comptroller of the Currency.

You may not have ever heard of Techwood Homes however, that doesn’t negate its pivotal role in American history, our history.

Techwood Homes was the first public housing project in the U.S. Located in Atlanta Georgia, it was completed in August of 1936. However, keep in the back of your head that it wasn’t till November 1937 that it was opened and dedicated by the trumpeter of Social Housing, Franklin D. Roosevelt, himself.

Now, it’s also important to know why America decided to get in the business of Government housing. The reality is, America had a concentrated number of poor and most all of the poor were living in slums. These were not nice places. In fact, many municipalities contributed large majorities of all their criminal activities to the slums and the poor who lived in them. So, in many ways, the American Government got into the business in the name of reducing or eliminating crime and yes, if it also progressed the Socialist Agenda…….well, that was a side benefit that wasn’t talked about much.

Now, the Techwood Homes were posh. They had bathtubs, electricity, ranges, garages, laundry facilities, library and even a kindergarten on site. By all accounts, they were nice, for what they were.

The sad part of this story was, the irony behind what eventually happened to Techwood Homes. You see, it became what it was supposed to prevent, a nest of crime, corruption and an example of urban blight.

After Techwood Homes were developed, many other Social Housing units sprung up in many urban settings, namely, New York, Chicago, New Orleans and San Francisco. Unfortunately, I can’t think of a single one that was ever trumpeted as a triumph…..I wonder why?

In 1996, Atlanta decided to destroy the Techwood Homes, it was an embarrassment to the city and because they were entering the world stage due to the Olympics, they couldn’t allow the blighted structures to stand.

The fact is, where you find poverty, you will almost always find high crime. It doesn’t matter how nice the house is, where the house is located, who maintains the lawn and plumbing, poverty is an incubator to criminal activity.

The Progressive leadership learned their lesson and decided that Social Housing, in the sense of large institutional style structures just weren’t a good way with progressing their agenda to provide government housing in their socialist society. I guess they never realized the power of poverty.

Shortly after these failed attempts, it became a political death nail in a politicians preverbal coffin however, it didn’t stop the agenda. It was during this time we saw private sector subsidy’s in the form of Section 8 housing and others.

Well, the socialist mantra, to never let a good crisis go to waste has never had such gusto. You see, during this housing crisis, which was engineered by progressives through the Community Re-Investment Act, they now see the light at the end of the tunnel. That’s right, a Progressive crafted crisis will give them the ability to forward their agenda and provide Social Housing through programs such as HAMP and other Foreclosure Prevention programs.

Yes, I am saying it and I am not apologizing.

I believe this housing bubble was engineered, crafted and laid in plan through the use of the Community Re-Investment Act and in turn, the Progressive dream of every American to have a home, laid down by F.D.R. can now be accomplished because no politician has the fortitude to tell people if you can’t afford your home, get out!

Make no mistake, I am all about saving people from foreclosure but, I also know that unless a homeowner has a job, counting peoples unemployment benefits as income so they can get approved for HAMP is a recipe for a bigger disaster or better yet, a door way for more Government assistance and possibly eventually allowing the Government to cancel the homeowner’s debt and remain in the home through a bank the Government has institutionalized or taken over……let’s say ….I don’t know…..Bank of America.

I do believe, it’s Obama’s agenda, along with the Progressive party, to either cancel the debt of homeowner’s who are struggling to make their payment or at least, give enough government subsidy that the homeowner can keep their homes under the waving flag of social housing. Be careful America, we are treading on dangerous ground.

Not just another REO Asset Management company, really?

Well, after talking with the Executive Management Team, interviewing on BlogTalkRadio and, now attending their conference, I can truly say I believe they are different.

Unlike all the pretenders who say that they aren’t just another AMC I can truly say that I know Bridge is different and in a really good way.

So what makes them different…….let’s start with the money back guarantee.

I have in writing a Money Back Guarantee that was signed in front of me by Alester Waddell CFO and notarized. Now, I am not going to go into detail about every single detail in this guarantee but, just let me say, Bridge really stepped up and is doing the right thing with it.

Secondly, their purchase power is a bit sexy…..if you know what I mean? Not that I wanted to be impressed of felt as if they were being boastful or pride full but, let’s just say, if size really mattered………….they would be masters of the universe and rock your world.

Thirdly, the technology, thank goodness someone has built a technology that appears to be fairly seamless and transparent. I have a bit more to learn here so, I won’t say more than, it looks good and if it can do all they say it can…….it will be incredible.

Fourthly, relationships! I am so glad I got to meet and have dinner with the owners and Executive Team…..that is so missing in this industry. Let me be clear, they didn’t just have dinner with me and excluded themselves from the rest of the pack. They mingled, sat at different tables, got to know the Realtors they are partnering with……………..why can’t the rest of our industry be like this?

Last but not least, passion and desire with an eye to the integrity of the whole process. I was able to set down with Bobby Funk for a spell and was really glad to find someone who felt, and sounded just like me. I was impressed and thrilled that it was as if we were reading from the same play script. It was so strange I had to step back, pray and ask the Almigty…………was this possible, did I happen across a company who thought like I did? I have to admit, my last night in Burbank, I got the chance to sit down with Marla Webb and it was confirmed that YES, I did find a company who thought like I did about this industry. Marla, you are the bomb!

All in all, it was all good….better yet, incredible. I can’t wait to start making money and hopefully, I can get down to working with just one asset company……Bridge! I know for many of you that may sound like a pipe dream but, with the way this company works, let’s just say……..Bridge is my triple platinum gold credit card and I plan on using it!

In the era of the internet marketing and search engine marketing it has become really important that we adopt good strategies to promote our products, services or other offerings. Web has become a great medium to popularize whatever we want to reach the mindset of masses or selected target audiences. However, people pay more attention to visuals than the written text and hence video marketing has become more popular than the articles.

In the era of web2.0 it is more important to use the resources in a correct manner. Nobody would sit and watch your videos if they are plainly filled with the pushy statements and connotations that "You should buy my product, it's the best". You need to create videos that educate the audience, tell them what's great about your product in a convincing manner and if you manage to do that then certainly people would be awed by your creation and promote it further.

You can create videos in variety of ways and they can be simple video landing pages, webpage with streaming videos, downloadable files or customer reviews etc.

Visual communication is always more impacting and influential than the written. It is rightly said that a picture is worth a hundred words because it helps to communicate an idea in a more precise and correct way without need of excessive explanation or detail. On the other hand if the picture or visual is not intelligently crafted than it may fail to give the real explanation and thus the thoughts and ideas may be mis-communicated. So there is need to create videos for video marketing in a clear and correct manner.

The creativity and ability to innovate is the key in this field. You may go in for animated videos or real life videos. It can certainly be used as a powerful medium to attract interested buyers into your market base. As per the statistics more than 9 out of 10 people would want to watch videos rather than reading articles. And another survey reveals that video marketing has more than 60% of the customers than the other channels of communication in the internet marketing.

It is important that the videos which you create are made in good quality and correct format. There are a lot of social video sharing sites like Yahoo video and YouTube by Google group which can create a lot of hype about your videos. You just need to share and upload your videos on these sites, If your videos have good content and are affirmatively educative and interesting, people would be more than glad to share them with others. In this way there would be immense popularity of your video. The more number of people watch your video greater would be the sales of your product.

Viral video marketing is indeed a great way to proliferate the sensitivity and idea behind your product to larger to a wider audience.

“Can you tell me the benefit of attending all these conferences?”

Networking

The sad fact of the REO Industry is, if you don’t know someone, you most likely aren’t going to make it in this business. It’s a fact and sadly enough, the vast majority of you out there trying to succeed in REO know this because you are struggling to get just your first REO but, YOU HAVEN’T DONE A DAMN THING ABOUT IT!

Instead, you send me silly questions like, “Can you tell me the benefit of attending all these conferences?”. COME ON, do I really? Seriously?

Ok, in the spirit of giving, let me give you a golden nugget. If you are paying your expensive conference ticket, expensive plane ticket, expensive hotel ticket, expensive rental car fee, food and whatever else but all you did was attend the conference………..it most likely was a waste of your time! I know this may come as a surprise to you but, let me share a golden nugget with you. Ready?

Most of the business done at a conference isn’t done at the conference. It’s almost all done at the after parties. In fact, I know this to be true because most of the business I have ever received came directly from the parties afterwards that I was lucky enough to attend. In fact, ask any major player and they have at some point attended a party that allowed them to network with some decision makers who ended up liking them and catapulting their careers. To explain to you just how important the parties are, I know people who are coming in for just the VIP Poker Party RealtyPilot / REOPro is hosting and for nothing more. To further my point, how many times, at a conference have you been walking around and happened to bump into the VP of Fannie Mae………..NEVER! Why is that? Because she isn’t attending the conference so much that she has breakfast appointments, lunch appointments, dinner appointments and parties to attend to do nothing more than N.E.T.W.O.R.K! Yeah, you might see her on a panel speaking or walking through the hall very quickly with an entourage rushing her to the next speaking engagement but, when she is done speaking….she is out of there to her networking events. It’s your job to do all you can to be at the same events she is at or, you are going to miss out on an opportunity of a life time!

It’s at these networking luncheons, dinners and parties where these VIP’s let loose. They get a couple drinks in them, they are around others that they know or have heard of and they get comfortable. They don’t have to worry about reporters, lookie lous, wannabes so, they let down their guard and if you made it in the party, they consider you a part of the club. It reminds me of that scene in Titanic when Jack Dawson, played by Leonardo Di Caprio gets invited to dinner by Rose’s finance, whom I can never remember his name. Jack goes and gets himself a tux from the unsinkable Molly Brown and off to dinner he goes. The movie makes it a point to showcase that he was graciously accepted into the elite club even though he was a 3^rd class ticket holder. This is the pinnacle of networking, getting accepted or invited into a ultra exclusive club or party and then making the most of it. Using your Nerve, Charm, Charisma, and Wit to showcase who you are and what you can do for them.

People, the clue phone is ringing so answer it will ya?