First Time Home Buyer and Repeat Home Buyer Tax Credit

If you haven’t done so already, now is a perfect time to pick up the phone and call your 2010 purchase clients. Call them and make sure they have their HUD-1 Settlement Statement handy from the closing. Also call them and let them know where they can locate the IRS Form 5405. They will need to file this form with their 2010 1040 on or before April 18th. Then, drop a copy of their HUD-1 and the IRS Form 5405 in the mail along with a thank you card thanking them for their business again in 2010.

Your efforts will be appreciated.

Forgotten Basics

I’m working on a new, very exciting project for the real estate industry right now. I’ll be launching it in the spring of this year. In the process of putting content together I was reminded of the two things that we all have the ability to do but seldom put into action. They are free, and the world of marketing, and computer software developers, and print professionals would have us forget them tomorrow if they had their way. My five year old daughter has a pretty good handle on both of these skills already. Her mom and dad spend time honing these skills on a daily basis and our advice comes naturally because they are skills that come naturally to us. An interesting aside, I’ve noticed moms/women actually have a better handle on these skills than dads/men.

I’m talking about the two things that we all start our careers off with and are pretty good at. As our careers develop, and our budgets increase, and our brains succumb to the brainwashing activities of all those well meaning marketers, software developers, and print professionals, we ultimately fear the use of these two most basic tools for success in business; the telephone call and the face to face introduction.

I can’t even begin to tell you how many times I’ve talked with a Realtor friend or Originator friend who is flat out terrified to pick up the phone and call a past client. I know why. It’s because somewhere, somehow, someone planted the thought in your head that you need to come away from every call and every handshake with a sale or a meeting or a referral.

It’s simply not true. It’s a bunch of bull. Yeah I know, all the sales coaches and marketing gurus tell you that to be successfull you need to speak a certain way and manipulate every phone call with linguistic precision that will entrance your clients and ultimately have them begging to help you before you get off the phone with them. And, maybe, some of the top 1% of those in business can do it. That doesn’t mean you have to do it to be successful. It just means that’s what some of those at the top did. I’ll bet you that some of those at the bottom did it too. You just don’t hear about them because they’re no where to be found.

Now, don’t get me wrong; I’m not saying there is no value in sharpening your speaking and listening skills in an effort to better recognize opportunities to help your clients and yourself in the process. What I am saying is, if you are struggling with picking up the phone in the first place, or struggling with introducing yourself to that next potential friend at the mixer, just forget all of the crazy stuff you’ve learned and heard in the sales training classes, and the webinars, and the coaching calls and …..say “hello.”

That’s it. Just say “hello.” The rest will take care of itself. It did in kindergarten. It did at summer camp. It did on your freshman orientation day in high school and college. It just does. And here’s the big lesson in this post: if all you do is pick up the phone and call your clients and say “hello” and “goodbye” 4 times a year for the rest of your life, not only will you have a rich life full of good friends, but you’ll be a heck of a lot more successful than if you never picked up the phone at all.

The same is true for people you want to meet at a mixer or an event of any kind.

I’ve posted a couple of videos I thought might help:

[youtube=http://www.youtube.com/watch?v=6JyrkxV1lbI&feature=player_embedded]

Keep it simple, friendly and sincere. When you have something of value let them know, most important, be a friend.

Five Finger Game Plan

This is the time of year when all those well thought out goals and resolutions start to fade back into the recesses of our long-established habitual behaviors. Only to resurface occasionally in the coming 11 months as an ever fading memory of what we should do but for some reason just can’t get around to. Usually we’re “too busy.”
Whatever the excuse, you have to remind yourself that it must have been important to you or you wouldn’t have set out at the beginning of the year to accomplish it in the first place. Go back to your goal and revisit the reason for setting it. Ask yourself again why it is important for you to achieve it this year. Write that down. Summarize the importance of achieving each of your goals into a few powerful sentences and write those down. Print them out and put them someplace where you can revisit them everyday. Then take five or ten minutes to read to yourself why your goals are important to you.
This next step is something I added to my morning ritual that helps me stay on track for a year of successfully achieving the goals I set for myself. A good friend of mine introduced me to this technique and I’ve used it ever since. His coach Joe Lukacs introduced him to it and calls it the Five Finger Game Plan. I’ve adapted the concept for my own use and think it would be helpful for you.
The general concept is that we will struggle to do much more than five significant things in our lives or our businesses each year. That can actually be boiled down to five things each quarter, each month and each day. Obviously, as you drill down to the daily level the size of the activity will become smaller. To have a to- do list a hundred miles long does nothing but overwhelm and confuse. The point of the exercise is to start with a forty-thousand foot view of what you wish to accomplish for the year; to lose 50 pounds, or add 50 clients, or spend 50 days with your kids without distraction. Put the five most important promises you’re making to yourself down at the forty-thousand foot level. Next, figure out what you need to do at the fifteen-thousand foot level; the quarterly level. What do you need to do in the next three months on a consistent basis that will help you achieve those 5 big promises. Do you have to lose 13 pounds? maybe you need to spend 13 days with your kids in the next 3 months and so on. Next, drill it down even further to the monthly level, the weekly level and on down to the daily level. Get your promise simplified to where it is no longer so imposing, so impossible looking. Take it one day at a time. The saying “A yard is hard but and inch is a cinch” aptly applies to goals and their achievement. No one ever went out and lost 50 pounds over night, well not without losing something important. They went out and day after day lost 2.25 ounces each day. They spent one day each week with their kids, they added one client each week to their business; you get the idea.
I’ve put a link to the tool I use every day to help me stay on track. I have created a fill-able pdf for your annual, quarterly, weekly and daily five-finger game plans. Simply find five or ten minutes to complete to complete the form each day. Print it out and place it on your desk at work or your counter top at home to remind you of the five most important things you must do to accomplish the five most important promises for the year.
Stay on track, stay focused, achieve great success in whatever you do.

Many of you know of the value I place on the lessons taught by Keith Ferrazzi; he is a strong advocate of leading with a giving hand and of developing long lasting, mutual beneficial, meaningful relationships. This being the dawn of a new year I thought I’d pass on some of his wisdom in an effort to help you in your success for 2011.

[youtube=http://www.youtube.com/watch?v=WWylg8agUSM&version=3]

National Open House Weekend April 10th and 11th

This year the National Association of Realtors® is rallying the troops for an event designed to raise consumer awareness about:

  • The pending expiration of the extended tax credit
  • The benefits of home ownership
  • And to increase exposure to their client’s listings

We are teaming up with Realtors® to give them the best tools in the industry to promote their open houses and to gain access to the potential buyers perusing the inventory. If you still haven’t taken advantage of our List Assist program you are fighting with one hand tied behind your back.

This is why

Realtors® who have taken advantage of our help have:

  • A cash incentive to motivate the buyer of their listing to work with a lender they know and trust
  • That same cash incentive could save your listing client up to $1,000.00
  • A call capture system with the option of using text technology or the standard recorded message and fax capability
  • A single property website that will allow them:
  1. To post effortlessly to Craigslit and Backpage
  2. To announce their client’s listing to their client base and the Client’s sphere
  3. To announce open house schedules
  4. To provide their client and prospective buyers on the home instant access to information brochures on the property
  5. To provide those interested in the home map information, demographic information, School information, Virtual tours, photo sideshows, and neighborhood amenity information.
  6. This is just the tip of the iceberg.
  7. Oh, did I mention it costs nothing?

Are you playing on a level field with your competitors?

This event is a perfect time to try List Assist if you are not already using it. It is the perfect time to update your listings if you are. And, if you just absolutely do not attend open houses, fine, give a newbie in your office a break; ask them if they would like some additional exposure. They will thank you. Your seller will thank you. Who knows, the home might just go under contract on the 15th.

Reminder to Keep Your Clients Informed on FHA Changes

I am not going to go into all of the changes that are being brought forth by FHA in the coming weeks; not now anyway. I do want to highlight a change that is sure to affect a number of your buyers who are trying to get into a home prior to the expiration of the home buyer tax credit. Surprisingly only about 10% of the lenders I polled  today knew when this particular change was happening.

Traditionally FHA has charged an upfront mortgage insurance premium of 1.75% on its insured loans. Due to shortfalls in its reserves it is raising that number to 2.25%. This is a significant amount on most loans. Considering FHA financing can represent loans frequently in the 300,000.00 and 400,000.00 price range, and in some high cost areas much more, your borrowers could be looking at several thousands of dollars in additional costs due to this change.

Here’s the kicker: The change takes place April 5th of this year. That’s only a couple of weeks away. Be the source of information that will save your clients money. Call them and inform them of this change.

Colorado Condos Crushed By HUD and Fannie Mae

Is anyone else out there wondering what economic theory supports the current actions by a Government that is so intent on spending money with one hand in an effort to prop up the housing market and shore up financial institutions that have been hard hit by a falling housing prices while at the same time restricting the outflow of money with the other hand by limiting the buyers and homes that can qualify for that money.

Let’s look at the recent change in the condo approval process instituted first by Fannie Mae and more recently HUD. The government entities have now placed the onerous responsibility for approving condominiums for financing on the shoulders of the individual lenders. This is a huge process. A sometimes very expensive process as well. If you would like to review the rule changes see HUD Mortgagee Letter 2009-46b. It’s a 21 page letter, most of which is dedicated to explaining the requirements for approval that the lender needs to satisfy. The last thing the lenders need or are willing to take on right now is more paperwork.

What’s this mean for real estate professionals and condominium owners? You will not find financing for your condo if you are not on the existing approved condo lists.

Fortunately, I have the solution. And when I say “The” I mean it. There is only one solution. If you have a listing in a project that is not approved, or you have a buyer that wants to purchase a unit in a project that is unapproved, you need to call me. I can help. (303-639-5674)

What’s your spot gonna be

I found this video on Seth Godin’s blog. It is Gary Vee (Vaynerchuck) talking about the importance of narrowing your business focus to a very specific niche. Gary Vee is the author of Crush It and he has found great success being himself in something he loves and something that other people happen to love. His spot is wine tasting. But it’s tinier than that; it’s wine tasting Gary Vee style. It’s different than anything anyone is doing anywhere. It doesn’t work for everyone. For those it does work for it builds a bridge, it develops a relationship, it creates a linchpin (Gary) for hundreds, thousands, maybe more.

Linchpin: GaryVee from Seth Godin on Vimeo.

What can you do this year to develop your business, your passion, into a laser focused spot that speaks to people so clearly that you undeniably become their linchpin?

FHA Takes Action to Address Foreclosure Crisis

FHA is taking the following action to address the foreclosure crisis.

The waiver is limited to sales meeting the following conditions:

  • All transactions must arms-length; no identity of interest between buyer, seller or third parties
  • Ways to ensure no unacceptable arrangements include:
  1. Seller holds title
  2. LLCs, corporations or trusts that are serving as sellers must meet applicable State and Federal law
  3. No pattern of previous flipping activity exists on property (as evidenced by multiple title transfers w/i 12 month)
  4. Property marketed openly and fairly (Any sales contracts w/ “assignment of contract of sale”) may be a red flag
  • Sales w/ 20% increase over seller’s acquisition cost will only be permitted if the lender:
  • Provides supporting documentation and/or second appraisal which substantiates increase in value (I.e. renovation or rehabilitation)
  • Orders a property inspection and provides it to the purchaser. (Borrower may be charged for inspection.)
  1. Waiver provides what the inspection must review and other requirements
  • Waiver is limited to forward mortgages

Timing

The waiver is effective beginning on February 1st for one year.  The waiver also includes the language “with regard to subsequent sales by purchasers”.  While it appears this waiver applies to new sales, we will check w/ FHA to see if it can be applied to sales that have already occurred and did not meet previous exemptions.

Anything Worth Doing is Worth Doing Badly

I have to give credit where credit is due. I got my inspiration for this post from a good friend Jay Marcum. He and I were talking about some of the marketing strategies we were going to implements in the coming months and he rattled off a couple of great quotes.

“Nothing worth doing is not worth doing poorly until you can do it well.”

“Anything worth doing is worth doing badly.”

I was reminded of these quotes when I spoke with two other friends yesterday. I was talking to them about what they were going to spend their time doing in 2010 to generate business. Both of my friends are in the real estate industry but the have different roles. One is a Realtor and one a Mortgage Broker. Now, let me first say that I am not singling these friends out to pick on them. What I recognized in them is behavior that we are all guilty of from time to time, including myself.

When I asked each of them what they had planed for the year as far as a strategy to improve their businesses, each of them indicated they would be making more calls to past and potential clients. I asked my mortgage buddy, “how many calls have you made this year so far?” He hung his head and held his hand up making a circle with his fingers.

My Realtor friend exclaimed with a bit of frustration in our conversation that she didn’t have time for blogging and making videos and other social media. She said she was too busy with her hour of power. (For those of you that aren’t familiar with the term, it describes an hour each day in which you perform an activity that you believe will be the best use of your time in an effort to produce business.)

I asked her what she was doing in her hour of power. She said she was calling past clients. This,  by the way, is a fantastic way to spend your hour of power. I believe this is a far more productive strategy than blogging, shooting video, or Facebooking. It should take priority over all other methods of getting yourself out there. This being said though, when I asked her how her calls were going she said she hadn’t started yet. She still had to send out a couple of letters before she could call her client base with a follow-up call.

I admit it! I’ve done this. I am guilty. Heck, I still do it more often than not. This blog is as much a pep talk for me as it is for you. I also know that to delay your calls until your perfect plan is set up is many things. One thing it is not is perfect. The moment is never going to be right. You will never be completely comfortable making that call, the stage will never be perfectly set. This strategy is a stalling tactic, subconscious or not, that is symptomatic of call reluctance.

Not only is this tactic going to delay your results, but when you finally get to the moment you’ve been planning for, the call reluctance will still be there. Don’t kid yourself, picking up the phone two months from now isn’t going to be any easier than picking it up today. However, not picking up the phone today, is much easier than picking it up.

Just ask yourself two things; What is the result I am receiving by not picking up the phone? I’ve got news for you, you’re probably living that result. Then ask what is the result I will receive when I do pick up the phone? That’s the life of which you dream.

Stop planning for perfection. Anything worth doing is worth doing badly. Just do it.