This too shall pass……..

Foreclosure, Modification, deed in lieu, “cash for keys”, HARP, HOPE, short sale,etc…. These are the terms that have come to the forefront of the Real Estate vernacular and that of society as a whole.  Common questions are ” How did we get here?”, “What do we do now?” and “What does the future hold?” As Real Estate professionals, we know that this is nothing more than another temporary market gyration, ephemeral at best but knowing something and conveying it to the uninitiated are unfortunately two different things.

If you’re looking for a great piece of advice to tell your clients, something that will assuage their concerns, a morsel so brilliant, it will have them believe that you are the greatest of geniuses and a true Guru’s Guru, I will give you 4 words………………” This too shall pass”. Too simple? Not the usual verbose explanation encompassing everything from the Hang Seng Index averages, to how many toothbrushes were sold at WalMart this quarter? The truth is that it IS just that simple. We saw it in the eighties, again in the nineties and now it’s once again our turn to suffer the consequence of our sustained lucre. At the end of the day, the piper is always awaiting payment.

So here we are, in the midst of a litany of client concerns. We try to mollify their fears by providing them with data. How many units have sold and at what price….How detrimental foreclosure can be to their financial well being and how bankruptcy is a permanent fix for a temporary problem but when it’s all said and done, the only thing they really need to know is that ” This too shall pass”. As we move forward in this tumultuous market, the message for our buyers, sellers and investors should be that the window of opportunity will not remain open forever. If you’re a short seller, you have to know that the banks will not be so forgiving, once the onslaught of foreclosures starts to taper off. If you’re thinking about buying, you should be aware that they’re not going to hold both interest rates and home prices at record lows for an eternity and if you’re n investor, you should be buying everything in sight! No one wants to be the investor who says ” if I knew then, what I know now, etc…. Investors have the rare opportunity to see hindsight…………….up ahead.

When you sit down in front of your client, remind them of the opportunities that this market creates. Remind your buyer of the homeowner who purchased in similar turmoil, only to emerge victorious upon market recovery. Remind your short sellers that while NOD’s and NOS’ are not the greatest addition to one’s credit profile, it will not be impossible for them to purchase a home in the future (irrespective of what the media is telling them), Give your investors a math/ history lesson so that they will understand that every penny they spend today, will return in the guise of a nickel 3-5 years from now.

It’s time for action! We have to inspire our customers to respond to today’s market conditions and convey concisely that inaction is the only bad move. Buyers, short sellers and investors all benefit from the current economic climate, and as we know, when hindsight is actually hindsight, it’s infinitely more difficult to act on…….

Nothing need be made, lest it can be sold……………..

“Nothing need be made lest it can be sold”

 

“Sales” is the most underrated skill which unfortunately can carry a negative stigma. What most laymen, (non-salespeople) fail to understand is that salesmanship is the very talent that not only keeps them working but is the foundation of our world economy.

 

Let’s imagine for a moment, a world where nothing is ever sold. No marketing campaigns, no subliminal messages, no mind controlling political rhetoric and certainly no direct marketing! What would happen?

 

Well, let’s see: You probably would never have purchased your first book, you likely would not know who to vote for, commercial media would not exist, It would be impossible and extremely costly to bring new products to market for several reasons, ( can’t raise money, can’t market the product effectively, no IPO’s, no angel financing, no manufacturing discounts, (because ideas have to be sold too!) but let’s take it a step further. Let’s examine a fictional scenario: We’ll use “Dr. Scalpelhammer”, a neurosurgeon. He’s the absolute best in his field and has studied Neurosurgery for 25 years. He’s lost a minute number of patients as compared to the lives that he’s saved and a patient sits before him wondering whether to allow he vs. another surgeon, the privilege and responsibility to undertake this life saving and possibly threatening endeavor. This patient, surely will have to be sold. Now the doctor may say things like “this is your decision and I don’t want to influence you”, or “I’m sure Dr. “whoever”, will do a fine job as well” but at the end of the day, he’s SOFT SELLING YOU! When it’s all said and done, you will probably be pleased that he did. The following is a list of professions for which selling is not only an enhancement but a downright necessity. After reading the list, you’ll get the idea.

 

1) Physicians

Even though physicians enjoy a certain level of inherent credibility, they ultimately still have to sell their service to either the patient, the hospital or both.

 

2) Attorneys

They are the masters! They sell you first (fees), then the opposing counsel, the witnesses, the judge and ultimately the jury!

 

3) Architects

No brick or mortar would ever be assembled if the Architect was unable to convince his client of not only the aesthetics, but efficacy of design as well!

4) Broadcasters/Publishers

They’re selling to everyone! You, the sponsors, the station, etc…

 

5) Actors/Entertainers

Come on!

 

6) Small business owners (stores, gas stations, etc…)

If they don’t sell, they don’t eat and the competition is fierce!

7) Hairstylists/ Aestheticians

Same as small business owner, only the competition is even worse! One mistake and you are finished.

 

8) Politicians

                        I won’t insult you.

 

9) Chef

                        If your customers don’t eat, you don’t eat!

 

10) All support staff including Nurses, Personal/legal assistants, gas station attendants, employees of any organization, you are very fortunate. The selling has already been done for you.           

 

After 14 years of being an Investment broker and 7 years of being a Real Estate Broker, I have seen more occasions where the consumer was the beneficiary of good salesmanship vs. being left to their own devices. Generally speaking, people by their very nature are afraid and somewhat lazy. Afraid to risk the mistaken purchase, which leads to that feeling in the pit of their stomach of having been “suckered” and lazy to do the appropriate research prior to the point of sale. 

 

So in spite of any stigma, negative media or your mother telling you to find an “honest job”, I say, Salespeople unite! The consumer and economy as a whole, are in dyer need of your assistance. Help someone today and whatever you do…………… don’t forget to collect your fees!

 C. DeBruno

http://www.debrunoandassociates.com

 

 

 

 

 

Why can’t we all be Lucky?

Why Can’t We All Be Lucky!

The Greek philosopher, Plato said “The harder you work, the luckier you get”. Now to the average person, this doesn’t mean much at all and to 90% of professional people in the various fields that promise unlimited opportunity, it doesn’t mean much more; however, to the elite few, the ten percent who round out the 90/10 rule, it means everything.

Most salespeople, lawyers, physicians, developers, etc… would tend to seek an exterior cause for their failures. Either “the sales leads are no good” or “the case is a loser”, or “ he would have died anyway”, and the list goes on and on. These are the greatest hits of a band of losers. These are people who refuse to travel the lonely extra mile in order to become the best in their field.

Every day, the consumer/patient/client goes out looking for a true professional to assist them with their issues. Whether it is a Real Estate purchase, an investment recommendation or a hip replacement surgery, the result is generally the same. Ninety percent of those consumers will find lackadaisical, lackluster, lazy, slothful providers who tout themselves as professionals, whether it’s the stockbroker trading on privileged information, the plastic surgeon providing “cheap” breast augmentations or the criminal lawyer telling you to “take the deal”. In their heart of hearts, they all know that they have moved beyond their true capabilities.

Why does this happen? In a word,………..GREED! Now, there are certainly different levels of greed and I think that most business people would agree that a fair amount of greed… is good. The question is, where is the line? I believe that most of us know where our respective lines are. At some point, it becomes a question of right versus wrong. There’s an inner battle being waged between greed, need and integrity. Greed wants it all at any cost, need justifies deceit and integrity attempts to maintain an even keel. The winner is generally the one of which there is greater quantity. If you are needier than greedy, the result is generally the same as if you are greedier than needy. Integrity rarely wins in our current business culture.

I know that this may sound like the bitter rantings of someone who may have found himself victimized by one of these verminous so called “professionals”. The truth of the matter is that at one time or another we all have fallen prey, but what’s even more true is that each one of us has allowed greed or need to lure us onto the side of inveracity, lawlessness and lucre.

The question is, can we meet our goals and objectives without having an adverse effect on our fellow man? Unfortunately, the answer is a resounding no. Sadly, someone has to lose something for someone else to gain. So what gives? The answer is in the work. Those who are willing to push the envelope don’t have to cut the corners. Hard workers don’t have to cheat and tenacity always wins over mendacity. Furthermore, the professional who doesn’t scheme to his customer’s detriment, won’t have to worry about consequences later on i.e. lawsuits, chargebacks, etc… As a matter of fact, most of the people at the very top of their fields are honest and hard working pros, who make it look easy. Generally they are in better health than that of their slothful counterparts and things just seem to “happen” for them. Indeed, they seem to be well,………lucky. Go figure.

a womens wonderland [url] http://www.awomenswonderland.com [/url]

Respect your finances!

The age of “do-it yourself” finances has come and past. With billions of dollars lost in the stock market, mortgage lending and real estate in general, it’s time for consumers to turn back to more conventional means of achieving their financial goals.

 

As we head into the last third of 2007, we look back on a year of turmoil, not only in real estate, based on the insider trading and mortgage lending debacle, but also in the stock market. While the overall stock market may be up over 10%, a lot of times, do it yourselfers aren’t able to realize the gains of the broader market. Generally through either lack of experience, poor advice (tips), or an overabundance of greed, the self advised become victim to his/her own misdoings.

 

The reason that many people feel that they can self invest, is largely a result of the onslaught of the online trading websites that emerged in the mid nineties. The phrase “Bending over a dollar to pick up a nickel” comes to mind. People became so focused on saving commission dollars that they forgot what the commission was actually for……. ADVICE! Decades of research and analysis have been compiled to provide the investor with the insight to make profitable decisions. The word investment by its very nature implies the expectation of a favorable result tomorrow, based on information and action today. You can’t buy that for 9.95 per trade!

 

The solution to this problem is simple, yet complex. Find a professional who can advise you based on your objectives. Sounds simple right? Well, it could be, once you’ve determined what exactly, your objectives are? If you don’t know where you want to go, no one can assist in your arrival. The following are some questions you can ask yourself that will at least give you a basis for choosing the right kind of professional.

 

 

1)      What is my time frame? Am I planning for 30 years from now, 30 months or 30 days?

a)      Your time frame will determine your risk tolerance. The shorter your time frame, the more risk you will have to take in order to meet your objective.

 

2)      What can I afford to invest?

a) You don’t want to save or invest so much that you have to keep breaking into your piggybank. It disrupts your investments and sets a poor precedent. Invest enough to meet your objective, while maintaining your standard of living. 

 

3)      What am I saving for?

a)If you don’t know why you’re saving, you may not have the proper motivation.

 

4)      Do I mind paying taxes on my capital gains or passive income?

a)      If you’re saving for retirement, you may want to defer your taxes until you actually use the money for your living expenses. There are several ways to defer taxes including IRA’s, Life Insurance policies, annuities,etc…

b)      If you are investing for current income and are tax sensitive, you may want to consider municipal bonds which may provide tax free income (speak with your tax and financial advisors)

 

 

5)      What is my risk tolerance?

a) can you bare to see wide swings in your account value if you’re not planning to use your money for several years? If you’re time frame is ten to twenty years, today’s fluctuations are not as important as the end result. Focus more on the plan, instead of the market. If your investing monthly, you will buy at lower stock prices while the market is down, which will give you a better end result.

 

6)      Who will inherit my estate if I die?

a) if you have no beneficiaries, your assets could go to the state of your residence. If you do, without planning, your heirs could endure a lengthy and costly probate.

 

While this is only basic information, it is enough to point you in the right direction and help you to ask the potential advisor the right questions. Asking the proper questions will allow you to easily determine whether the advisor is the right one for you.

 

Today’s financial climate is far more complex than that of the eighties and nineties. We’re in a new era of fast paced markets and rapidly changing economic platforms. Real Estate has gone from boon to bust in a matter of six months. It is not a time for making decisions on the cheap! When you compare the cost of hiring competent professionals to the potential hard losses or even opportunity costs, the solution is clear……get some help.

a womens wonderland [url] http://www.awomenswonderland.com [/url]