Realty World Northern California & Nevada

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Since I was a kid, or as long as I can recall, I followed the airline and oil business because I was interested in the way they worked.  Those dynamics are not any different than any other business I learned as I grew older.  Eventually, the bastion of profitability wait on the many efficiencies software developers invented to fill a specific need. Airlines eliminated travel agents by bringing the ticket directly to you via software.  When was the last time you called a travel agent for a round trip ticket to Orange County?

The successful real estate agent today needs a systematic solution-based program that functions as the central nervous system of the marketing, sales and communication process.  To make selections of tasks based on data that is already uploaded for multipurpose uses is increasingly the central need and more agents are demanding that kind of power in real estate specific applications.  The trend turned movement and there is no sign of slowing down.

Every broker and associate in our company should make assessment of this business dynamic and how it can positively impact your bottom line.  I’m grateful to work with talented people that craft and create these types of applications for your benefit.  Sometimes we forget what we have invested in and we just need reminding.  We have easy to use tools for you to compete in the new world and the additional advantage you have is access to millions of dollars in software for a sub-fraction of the cost.

If you’re wondering why some of the associates you know are doing more business, chances are they are involved in these online systems.  They take advantage of online video training, integrated applications and web driven tools that are easy to use and make practical sense.  So, do yourself a favor and log on or call the corporate office and ask what we offer.  You’ll be amazed.

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There is no question there have been hundreds of tantrums regarding the control of inventory REO agents have had in the past couple of years. Many who had those tantrums failed to create the relationships early enough to get a foothold on any meaningful accounts is the main reason. Other reasons follow – many discovered that being a rock and roll REO agent requires a lot of patient capital; extremely disciplined work standards and the fact REO agents resign themselves to server side applications that keep them at the keyboard for hours on end.

Well, times are changing and I’m going to make a short explanation of why door knocking is vogue…

Lenders statistically net more money on a Short Sale than on a REO. That is the shift that is taking place and the key to capitalizing on this requires an effort similar to what successful REO agents did; simply create the relationship before anyone else!

The only way you are going to find out who these sellers are is to find them prior to the Notice of Default (NOD) being filed. Once that happens, they are open and fair game for everyone and a new target for a litany of mail. Good old fashioned shoe leather will beat out direct mail on this one. Why? Because nothing beats a face to face call on a prospect and especially on this subject. Also, direct mail cannot ask and receive referrals like you can in person. Pretty simple.

Count on NOD’s rising too. There will still be an REO market of sorts, as a result of poor documentation of liens, uncooperative subordinate lien holders, high income sellers that don’t fit guidelines and poor yield spreads that will cause the lender to elect foreclosure over a short sale.

I mention this because rock and roll Realty World REO agents should diversify the marketing effort to accommodate short sales and polish up on using our new listing presentation materials and commence a canvassing plan without delay.

As recently as yesterday, two agents from Realty World – Delta Country in Byron, CA spent the afternoon cold calling and returned to the office with two listings! That is why door knocking is back in fashion.

When you buy a big boat and register it with Homeland Security and the Coast Guard you have to name the vessel and its hailing port to obtain your documentation.  So, years ago when it came time to name our boat, which we worked hard for and we’re fortunate to finally get, I took the matter seriously.  I wanted a name that reminded me of good dealing, clean hands, equity and honor.  So I named her Covenant.  I thought the name would best represent our faith, goodwill, meaningful alliances and promises we make with others and our consequential relationships with much of the universe.  And, I’m equally proud of her name as the American flag she flies.

Recently I’ve had some dark thoughts about people’s obligations to mortgage companies and other creditors in these tough and trying economic times.  Those small lingering thoughts of default; the breaking of a promise and the premeditations of allowing one’s self to break a covenant with another have met a different reality and environment that give these notions birth.  Sadly, these seas are rooted politically.

I’m not referring to borrowers who have suffered a substantial or complete loss of income or those who obtained mortgages that shouldn’t have; I think those are separate matters entirely.  I’m talking about the people who have equivalents in income and other growth and income opportunities that otherwise could financially afford to maintain their present obligations and promises to lenders and simply choose not too.

Increasingly, reports of creditworthy and stable individuals are weighing the risk of future losses in real estate equity and purposely plotting strategies to benefit from mortgage default.  They reportedly move to a similar property in the same area that has gone down in value and walk on their present loan(s).  How they get financing remains a question to me?

Many have coordinated time lines to maximize withdrawals on remaining credit lines, equity loans and have somehow balanced in their mind a cost benefit factor of living with derogatory credit report.  Just the thought of that is a big reach for me and I grow increasingly worried about this situational ethic, off-the-rack culture and what that will mean for self worth of America’s children and our investment reputation in the financial world.

But, this is what I have to say to the real estate brokers and agents at Realty World…  Please stay clear of any involvement in a transaction that smells of this.  Even in times of desperation your self worth and personal integrity has greater equity than a commission from a transaction that is part and parcel to this behavior.

I understand economic waters may be rough; I’m right there with you.  But we have navigated through tough currents before and during these times, and while trying as they may be it brings me no justification to change the name of my boat.

I hope you feel the same way.

Scott LeForce
President
scott.leforce@rwnc.net