Archive for the 'Business' Category

Banks May Cut Losses On Foreclosures

Published by Allan 1 year, 5 months ago in Real Estate, Finance, Investments and Business. 0 Comments

ForeclosureDepending on where you are, and how many foreclosures there are in your area, you may start to see banks selling foreclosures for less than they have into them. Historically, banks have started the bidding on foreclosures at what they were owed. Now, if there are a lot of foreclosures in an area, and the market is flat, banks are starting to consider selling for less than what they are owed. This could be a great financial boon to those who follow foreclosures. To check on foreclosures in your area, you can read the newspaper, talk to lenders, and stay in touch with the real estate community.

If you would like to read the full story on how banks are pricing their foreclosures, click here.

Utah Gets Tough On Mortgage / RE Fraud

Published by Allan 1 year, 5 months ago in Real Estate, Mortgage and Business. 3 Comments

UtahFor some reason, Utah has always been toward the top of the list when it comes to ranking the states by the level of Mortgage and Real Estate fraud. Well, all that is about to change. Utah has passed (and the governer has signed) tough new legislation to deal with these issues. Honest RE professionals are, quite frankly, very excited about the new legislation. Not only does it level the playing field (for those who do business ethically,) it brings back dignity and respect to an industry that has seen its share of charlatans of late.

Under the old laws, the only people who could be prosecuted for RE / mortgage fraud were licensed RE / Mortgage professionals. Utah Division of Real Estate Director, Derek Miller had this to say to a Utah Senate committee: “[Under the old law] it would be equivalent to someone being involved in a hit and run, and when the police officer pulls the person over and says, ‘Let me see your license,’ and the person says, ‘Well, I didn’t bother to get a driver’s license.’ The polices officer then says, ‘Well, in that case, I can’t do anything to you.” Absurd as it sounds, that was the law in Utah. (On the other hand, if you weren’t licensed, the worst that could happen was to recieve a “cease and desist” order.) Perhaps even worse than that, professionals who were convicted of fraud were at risk of recieving a maximum penalty of $2,500. When fraudulent RE flips often netted a quarter to half a million dollars, the downside risk of a paltry $2,500 is negligible.

The bill also authorizes the hiring of investigators to look into the fraud issues, and requires background checks of out-of-state broker applicants, just as they do for those from Utah.

This is a huge step forward for Utah and the RE / Morgage business in the state. Stay tuned for more info on this important issue.

New housing starts slump

Published by Allan 1 year, 10 months ago in Real Estate, Construction and Business. 0 Comments

New ConstructionCNN Money is reporting that new housing starts are down lower than they’ve been in six years, while permits, a key sign of builder confidence, are lower than they’ve been since 1997.

It’s unclear whether builders are being more cautious because of all the media hype of the bursting bubble, or whether they are uncomfortable with all the excess inventory on the market. Either way, builders are taking note.

David Seiders, cheif economist for the national assn. of home builders doesn’t see the news as all bad. He told CNN, “I view the decline in starts as a healthy development. “We know that inventory is too high, so the faster we get back in balance, the better.”

Even though real estate is local, not national, you have to see this phenomenon as a sign of the current times.

the 80 / 20 rule

Published by Allan 1 year, 11 months ago in Real Estate and Business. 0 Comments

80/20 RuleI can’t stop thinking about Steve’s post from last week about your own personal business plan. The bank wouldn’t think of loaning you money without going over your business plan with a fine toothed comb. And yet our spouses let us go off to work each day, never questioning what our plan is for the day, the week, the month, the year.

When was the last time you honestly sat down and said to yourself, “What’s the plan? What am I going to accomplish today, this week, etc.?” When was the last time you did a serious evaluation of what you’ve accomplished in both the near and distant past? Are you making progress or are you just floating from day to day?

The old 80 / 20 rule applies to real estate, just like it does everywhere else. 20% of the people make 80% of the money, and 80% of the people share the remaining 20%. Which group are you in? If you’re not a top producer, what are you doing to change that? Do you have a plan? Are you working that plan? Is it a living, breathing, constantly-evolving plan? Do you update it regularly? Or are you one of the “unfortunates” who are affected by every wind of change?

It’s said there are three types of people in the world. Those who make things happen, those who watch things happen, and those who wonder what happened. Which group do you belong to? Would you say you’re a mover and a shaker — a person who makes things happen? Those people represent the top 20%. If you’re not one of those people, why not?

Do you believe you are in control? Or are you just a “victim” of everything that happens in your life? The top 20% believe they are in control (indeed we all are), and they act accordingly. The “victims” watch things happen (or wonder what’s always happening) and wish they were lucky. It’s really exactly like the old saw says, “The harder I work, the luckier I get.”

But why work, if it doesn’t make any difference anyway? Those lucky guys get everything because they got in at the “right time”, or they are more charismatic, or they are born salesmen, or they …… If that’s the way you think, you’d better look at getting a union job (I’ll bet that comment will raise some hackles!).

Everyone has an equal chance in the RE game. It’s about being positive. It’s about working hard. But mostly it’s about having a plan and working the plan. When they said if you fail to plan you should plan to fail, they knew what they were talking about.

What’s your plan???

Still no business plan? Get with it.

Published by Steve 1 year, 11 months ago in Real Estate and Business. 1 Comment

PlanHow often have we heard the importance of developing a good business plan? It doesn’t matter whether we’re in real estate or some other business or profession, if we clearly, in writing, haven’t set our sights on where we want to be and how we want to get there, chances are we will never have the success we could have had.

In this concise article, Beth Bresnahan lays out the what we should do to create an effective plan and encourages us to do so by asking if we are prepared for predicted cuts of 8% in 2006. She indicates a “great way to initiate action plans is with a SWOT analysis” (Strengths, Weaknesses, Opportunities and Threats). Such analysis would help anyone reveal areas where they need to focus. Are you up to the task of taking such a hard look at how you provide for your family and your future?

Strategic Business Planning: A Wild Ride

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