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I woke up this morning and started looking over all of my favorite business news websites and I saw that the headlines for today was something like…..,

“Economic Growth at a Standstill, Revised Government reports 2^nd Quarter Growth Down Sharply”

I get asked often, “who is your business” because, people want to know, is housing recovering. My reply to this question is normally,

“The worse the economy gets, the better my business. I am Bentley shopping have you seen the new Bentley Continental GT?”

Everyone laughs in nervous anticipation thinking I was joking and that any minute now I am going to say something to diffuse the un-comfortableness floating in the air like a lead balloon but, I don’t. My point with my reply is, the economy isn’t growing, it’s not even set to grow. In fact, the economy is actually set to fail and fail big. People are amazed or even combatively when I say these things, it’s almost as if they are walking around in a drug educed stupor with the thought bubble floating over their head that reads something like,

“YES, WE CAN” or “HOPE” and even better, “CHANGE”

The economy reminds me of that scene in the movie Constantine where Keanu Reeve’s character “John Constantine” has a face to face encounter with the angel Gabriel who want’s to make the human race earn the love of God by hastening the coming of Satan’s son. Gabriel explains her madness by elaborating that the human races is capable of such incredible triumphs but, through her years of observing us, she realizes that we only change when we are on the event horizon of total destruction or despair. She goes on further to say, she will bring further our destructions so that we can rise to the occasion and be found worthy of God’s love and grace.

Yes, it’s a sick, crazy understanding of human nature but, what could we ever expect from a being (an angel) who has felt as a 2^nd class race for eternity? You need to understand the concept from Gabriel’s point of view. She knows, God has put her and her race as 2^nd, in behind humans which in her eyes have done nothing but, thrown Gods incredible grace back in his face whereas, she and the other angels have served and will serve for eternity without such love or forgiveness.

In many ways, this battle that Gabriel struggles with, in the movie, is suppose to be a reflection of the concept of communal grace or collective salvation and manifest destiny.

In other words, Gabriel can’t be saved from these wretched horrible, less than desirable position behind humans unless everyone can be saved and she believes it’s God’s will and that she is doing God’s work and come hell or high water, she is going to make it happen.

Now, let me ask you, do you believe this theology could be present in our current Government leadership?

Yeah, I know….the movie analogy is a bit fanciful and maybe a bit ridiculous but, it’s a good analogy none the less.

Is it possible that our Government is being lead to bring forth fundamental change in the way of transforming our country into a socialist utopia where Government knows best. Is it possible that some in our Government feel it’s their destiny to make these changes and they are doing a good work by following what they believe is God’s will for their lives? Is it possible that some in our Government are working towards this transformation by creating a environment of total destruction so that they can rise up as our saviors and cleanse us of this evil capitalism that we suffer from?

Here is what I know. I know that Franklin Roosevelt announced in a radio program that he believed in a 2^nd Bill of Rights, of which, this administration has succeeded in accomplishing a few of those items.

The specific right I want to focus on is “The right of every family to a decent home.”

2^nd Bill of Right # 2: The right of every family to a decent home;

Once again, the politicians realized you can’t just give people a home but, you can collapse the housing industry and everyone who has a home and paying a mortgage can keep their homes regardless if they pay or not because, the government can raise taxes, create bailouts or take over banks and simply cancel out the homeowner’s debt at the expensive of the tax payer.

Let’s be clear, the Progressive agenda to move away from our constitution or to transform our constitution has been in the works for a long time. With the Progressive control of the White House and both houses of Government, we are simply seeing a fast forwarding of their agenda.

Make no mistake, you can’t have a housing recovery without jobs and from my point of view, this Government hasn’t done anything to increase jobs. In my opinion, they have done what they can to kill jobs and that leaves me with a question…………..why.

The next time your asked about your business, the next time someone ask you when you think we will recover from this economic crisis I hope you remember this blog, I hope you ask yourself do you really know what is happening in our Government that will forever impact our industry and how we do business.

This isn’t a Republican vs. Democrat argument, this is a Constitution vs. Progressive argument of which, both go to the core beliefs that you may have about this divinely inspired country.

Jobs Recovery and Rent

Strategic Defaults: A Strategic Option

What To Consider When Hiring a Property Management Company

Bank of America has assumed a leading role in processing Short Sales. It is well known in the real estate industry that BofA was the first bank to start tracking Short Sales on-line in the Equator platform, making the transaction more transparent and shortening the time it takes to process.

This morning, BofA held their third webinar related to Short Sales. The title of today's webinar was 10 Tips to a Successful Short Sale. Here's are the ten tips offered by the webinar:

1. Agent Short Sale Education & Training

2. Setting Realistic Expectations for Both Buyers & Sellers

3. Get Outside Liens Released As Quckly As Possible (2nd liens, HOA etc.)

4. Work to Sell Property @ Fair Market Value.

5. Fully Execute Purcahse Contract Before Submission.

6. Negotiate Escrow Fees in Advance & Submit Complete HUD.

7. Check all Documents Prior to Submission to Equator. Illegible documents will be rejected.

8. Complete Tasks in Equator in a Timely Manner. Counter not answered on time will be automatically rejected.

9. Agree on Counter Offers Before Accepting.

10. Identify Potential/Common Causes for Delay

Here's hoping other banks follow BofA's example!!!

Here's a link to the entire recorded webinar: http://video.webexlivestream.com/events/webx001/35673/eFrame.jsp?mei=35673&cf=webx001&;

This blog post isn't directly related to the REO business, but it is related to better business and life practices to increase your productivity and inhance your business and life - which is related to the REO business.

I am a hugh fan of Darren Hardy, publisher of Success Magazine and author of The Compound Effect (on recommended reading list). The great thing about Darren (who started out in Real Estate), and why I gravitate to him, is that his story, as exceptional as it is, could be your story. There is nothing spectacular about him that sets him apart from the rest of us (outside of his work ethic, drive and determination). But it is no secret that if you have good work ethic, drive and determination that you can also have success.

He didn’t inherit a trust fund or was given the keys to a family empire. He earned what he has. But he wasn’t a success overnight either. It was the little things that he did that compounded over time into success. And this is an easy principle that you can practice in your own life.

Main Points
1) Success is not derived for single herculean point-in-time efforts, but rather consistently doing 5-6 key practices over and over and over for a long period of time. Over night success doesn’t happen.
2) Darren’s primary thesis is that to build success you need to identify and eliminate bad habits and replace them with good habits. His definition of a bad habit is quite broad. For example, watching TV is a bad habit because it takes away your precious time that could be spent on a good habit that could make you successful (such as learning a new skill).
3) Consistency is the key to success.
4) His formula for success: Success = Preparation + Personal Growth + Attitude + Opportunity + Action
5) You must constantly monitor habits and mold them. A bad habit that has been around a long time is very hard to eliminate.
6) The way to instill new good habits is to rigorously practice them for 3-4 weeks. The repetition of 3-4 weeks is usually enough to instill the habit. Employ a “success buddy” or “accountability buddy” if you need additional help.
7) Over the course of a few weeks you should catalog your bad habits. To do this, it might be helpful to write down where you spend your time on a daily basis (e.g. 50 minutes watching CSI, etc…)
8) Once you are fully self aware of all of your bad habits, determine what the triggers are. For example, if you eat too many potato chips, do you primarily do this while you are watching late night TV, then TV watching late at night is the trigger.
9) Once you know your triggers make a plan to get rid of them.
10) Once you identify a habit you are trying to instill in you life commit to a PDA - a Public Display of Accountability. Tell the dream team, tell you wife, tell you family and have them keep you true to your commitment.
11) The key to goal setting and goal achievement is Focus! Focus your attention on what you want and it will begin to appear. (I also recommend the book Focus by Al Reis - Nicks side note.)
12) In working to achieve your goals, think more about who you “have to become” to attain your goal rather than about the material goal. For example, if I want to be a successful investment manager what type of person must I be. Once you figure out who you have to become, it will be much much easier to attain your goal. Also, if you can really understand the “why” behind your goal, you are much more likely to attain that goal.
13) Here are a couple of tactics to use to get rid of bad habits:
A) Find the triggers,
B) eliminate the triggers
C) swap the trigger and the habit for something else - something positive
D) Ease in to eliminate the habit - for example set a plan to eliminate the habit over the next 2-3 months
E) for some habits just quit cold turkey.
14) Here are a couple of tactics for instilling good habits
A) Plan for a 3-4 week period to consciously think about forming the good habit so it will become memorized and instinctive
B) Set your self up to succeed (for example, if your goal is to get in shape, make sure your gym is 10 minutes from your house not 45 minutes from your house)
C) Frame the good habit your are trying to form positively in your mind (do not think of it as a burden)
D) Make a PDA (public display of accountability)
E) Find a success buddy that will help with accountability
F) If possible, work in some component of competition or comradeship. For example, if you are trying to get in shape join a jogging club.
G) Celebrate you incremental accomplishments as you move along
15) If you want to be successful you need to be a positive person (not delusional … just positive). To do this, you must go on a media diet. Today’s media perverts our view of the world. Therefore, filter it down to good things. For example, set up a RSS feed and don’t watch local or national cable news.


Other Good Ideas:
1) Keep an “Ah-ha” journal with you at all times and record your key thoughts. Capture these thoughts and reflect on them regularly. They can be the building blocks of great things in the future.
2) Being grateful for what you have is the key component to being truly happy. To really be grateful you need to express it to those around you that you are greatful to. When you express it you will receive it back.
3) Vice fasting. If you have a practice that is not really a bad habit but could be, it is a good idea to do a “vice fast” one or two times a year to make sure you are fully in control. For example, I drink coffee. I should probably take one week every 2-3 months and drink no coffee to ensure I am in control
4) Success Buddy - Similar to our Dream Team you should think about having a “Success Buddy”. Someone you can discuss things with and help hold you accountable to your goals.
5) Good Habit - Make your car a traveling success library. You should never listen to the radio again. Listen to instructional CDs, learn a new language, etc… (Nicks side-note - subscribe to Audible.com and download audio books. Great way to learn and work at the same time.)
6) Upgrade Your Associations - We are who we associate with. If someone is dragging you down, then cut them off. If someone is successful and positive, then increase the time you spend with them. You want “engines” not “anchors”. Some ways to expand/upgrade your associations are: A) via books - have a virtual relationship with someone that is a positive influence B) hire a Coach C) Personal BOA
7) Bust Your Environment - Is the dream in your head bigger than your environment. If so, change your environment. If you are surrounded by small thinking, then find a way to be around bigger thinkers. Also, don’t let your small thinking bring others down.

These notes are no comparison to the book “The Compound Effect.” I would recommend you buy it (which comes in an audio format so you can listen to it in your car) as well as subscribe to Success Magazine.

visit: www.nicksbusinessjournal.com.

HELLO I RECEIVE THIS INFORMATION I HOPE IT CAN HELP BROKERS ON THOSE REGIONS.

July 20, 2010- Arlington, VA – Matt Martin Real Estate Management (MMREM) has been awarded three contracts by the U.S Department of Housing and Urban Development (HUD) under the Marketing and Management III procurement. The Federal Housing Administration (FHA), which is a part of HUD, provides federal mortgage insurance ensuring that mortgage lenders will be reimbursed in the event homebuyers default on their mortgage. When a lender is forced to foreclose on an FHA-insured single family home, townhome, or condominium because the owner can no longer make payments, it can file a claim with FHA for the balance due on the mortgage and convey title of the property to HUD. A HUD Home, therefore, is a one-to-four unit residence acquired as a result of a foreclosure on an FHA-insured mortgage. As the largest seller of real estate in the country, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process since 1999. After conducting extensive research into market-based best practices, HUD has developed its new M&M III disposition structure to streamline its operations, capitalize on the expertise of potential vendors and provide flexibility in a changing environment.

This week’s Ask the AM really spurred me into action. I hear moans and groans all the time from agent s who just don’t like social networking. They gripe about how time consuming it is or they were never successful or, it’s too monotonous, or……….whatever else and all I got to say is, SO BAD, SO SAD, AINT YOU GLAD YOUR MOMA AINT YOUR DAD!

As Ned points out in the article, someone is using Social Networking and taking your business. This mysterious agent has become savvy enough to create a LinkedIn profile or Facebook page and is now using it with maximum force.

You see, while your setting back, accepting those listing assignments, this mysterious agent is sharing tweets or swapping emails or learning about your Asset Manager’s terrible weekend because they lost their dog Sparky (thanks Ned). Before you know it, this agent and your Asset Manager are developing a friendship vs. a business relationship. So, when the next assignment get sent out, who do you think is going to get it?

Granted, I know social networks take time to create…..I created REOPro for goodness sake however, I can’t stress to each of you, your lack of involvement is at your own detriment. Now, you may never have a social network of a thousand or more or ever have a goal to reach twenty five thousand but, a well oiled social network of a few hundred and make a huge difference.

Here is the stark cold truth. Asset Managers are loosing their jobs, getting re-assigned or simply dropping out and all this is happening because the business is changing so, what do you think these Asset Managers are doing when they are no longer Asset Managers? Well, let me tell you, they are getting real estate licenses and taking over territories for their friends back at the Bank or Asset Management Companies. My point is, if you aren’t on a first name basis, dirty joke telling, birthday card sending, meet up at the conference having drinks relationship………………..someone else is or is trying to be.

Now, as many of you know, I try to adhere to a high standard of morals and ethics so, don’t misconstrue what I am trying to say. No, you don’t go put in hardwood floors at your Asset Manager’s vacation home or send them a Visa Gift Card worth $5,000.00 to their P.O. Box , hopefully if you did they would refuse it but, you do call them regularly if nothing more to just shoot the breeze or say “Hi”.

Let me put this another way, hopefully it will ring true to you. REOPro currently has over 18,000 invites to join our network that are outstanding. In other words, these are members who downloaded their address books in to our system and REOPro system each person an invite to join. By now, we should have blown though our goal of 25,000 member however, I am still only getting maybe 15-20 new members a day. This is contributable to the fact that many of the people who received an invite never got a follow up saying, “check out this network”. Social networking is a lot like that follow up. If you don’t follow up and say “Hi” or learn about people, then why would anyone want to invest in you?

I will leave you with a quote, who it came from, I have no idea but, here it is…….

“A lead will make you some money, a follow up will make you rich”, I like to change that around a bit and say……

“A lead will make you some money, a active social network will ensure your kids don’t have to work”

Last year I predicted that Palo Alto will see more short sales in the future. Well, the future is now so what is happening? There are currently 2 short sales on the market, 5 in escrow, and 6 closed in the last year. This isn't a huge number, but certainly more than we saw in the early part of the century. There's a lot of chatter in the media about how the government is giving banks and homeowners incentives for short sales, and how banks save money by allowing short sales, but does that help the typical Palo Alto underwater seller?

Here is what I have learned in the last year. It may not be the whole picture, as this world of what happens at the banks, hedge funds, and mortgage insurance companies is not transparent--but I have been involved in short sales and have studied them a lot.