Re-Posted from September 18, 2009 by tampabayrealestateblog & Vince Arcuri
This year I celebrated my 18th year in real estate! Over almost two decades, I have seen it all. ESPECIALLY how the overall business is run, from local independents, to major franchises to discount brokerages. One thing virtually none of them “get” is the FACT that it is the AGENTS that are the assets of any company. National franchises generally view THE COMPANY as the asset.
I was with my old badge (a national franchise) virtually my entire career under three different owners over the years since 1991. In my opinion, that brand never looked at me, even when I was #4 worldwide, #5 worldwide and #1 worldwide, despite paying well into the six figures in franchise fees over the years. I was the #1 Agent in Tampa Bay from 1995-2008 for that national brand. When I was with company #1, they were a top 50 office worldwide with that brand. In my opinion, the corporation viewed that broker as “the king” and when I left for another office of the same brand, they stayed loyal to my previous broker. A year or two later, my new company became a top 50 franchise (as the old firm fell off the map) and in my opinion, corporate sucked up to the new broker (and old broker who broke into the top 50 status from the fruit of my labor). Then, the owner unexpectedly passed away and there was a split in ownership. I went with another broker who purchased another old sinking ship from that brand and I was his big fish. Soon, he was a top 100 office and was very close to breaking into the top 50 with this national franchise model. In my opinion, Corporate still was on my old company, a day late and a dollar short like they always seem to be. Now, arguably the most successful office in Tampa for their franchise when I left (based on 2008 sales volume) is on very shaky legs as I write this. Where was the support for ME the Agent? In my opinion, they were so busy viewing the company as the asset, that they forgot about the AGENTS that pay the bills. It’s not the local Broker / Franchise owners fault. In my opinion, the parent company has taught them that THEY are the asset. They are not, it is the agents that chose to work there, at any office, that is the true asset.
What makes EXIT Realty any different? How about Sponsoring! Just like Wal-Mart or the insurance industry, EXIT is built on the company growing through the AGENT and Exit views the AGENTS as the asset, not the owner or single company. Is this bad? Well, I say “No” it is not bad. I think it is a great floor plan to build a company around. If the AGENTS are the focus of the COMPANY, both the Agent and Company are better off (anyone listening at big franchises)? I am so sold on this format, that I bought an EXIT Franchise of my own just 6 months into me becoming an Agent with Exit. You can imagine how upset my Broker Wayne Furlong must be at me leaving his firm after just six months right? After all, Brokers are ALWAYS mad at us when we leave, especially when you are buying the same brand and creating competition! Somebody forgot to tell EXIT Realty International about that because my old broker, Wayne Furlong has been my biggest cheerleader and he has not only given his blessing, he has been involved first hand with helping me set up. Other Exit brokers are helping as well because in EXIT, they (WE) all understand that by building the company together, we ALL get stronger together.
When I was with my old franchise, two of their biggest brokers in Tampa Bay (both the SAME brand) were suing each other constantly. Corporate did NOTHING to get involved and stop this damaging practice. I can’t imagine Exit allowing that to happen in any market they have. The total opposite is true! Exit Brokers, Agents and Owners are HELPING each other!
By sponsoring agents into the system, other Exit Agents actually “own” part of the other agent they bring in! They help that agent become more successful. I am SO IMPRESSED with this Exit Formula that I want to tell the world!
If you want to learn more, click this link and take a look at this Sponsoring Video all about how Exit works: http://www.headofrealestate.com/videos_sponsoring.html
For more information on this subject, you can call me direct on my cellular phone at 813-Vincent or visit my website at http://www.headofrealestate.com
Monday, September 21, 2009
To all EXIT Associates - Make More Sales!
So you have decided to not go to your brand national convention this year! (Exit Realty's convention in DC is just a few days from now). You say you can't afford to make it ... I say you can't afford NOT to go. I have been a Realtor since 1991 and as of today, with a few thousand satisfied clients scatted around the globe, I have yet to get one designation added to my name. No GRI, no CRS no zilch! What I HAVE done is always attended my conventions. They always turn out to be FREE.
Can you honestly tell me that if you go to Convention, you will not pick up enough knowledge to pay for it in the next year? You won't close ONE more deal from what you learn? That excuse has always been the case for those who were afraid to spend the money in this business (thank you by the way from those who do make it year after year because if everyone went, there would be less business for the rest of us). Those events are for the purpose of learning (more money), improving your service (more money), networking for referrals (more money) plus, plus, plus. There is a reason they are put on to begin with.
I have always learned a valuable skill at each event that I have ever gone to and been able to implement it into my business as soon as I returned! If you are serious about your career, you need to FIND a way to get to the BIG SHOW. If I had never gone to a convention in my life, there is no way I could put up the sales numbers that I have over the years! If you can find a way to go, it will be the best investment you could ever make in yourself and in your business.
Re-Posted from Vince's Blog: www.headofrealestate.com, September 12, 2009
Can you honestly tell me that if you go to Convention, you will not pick up enough knowledge to pay for it in the next year? You won't close ONE more deal from what you learn? That excuse has always been the case for those who were afraid to spend the money in this business (thank you by the way from those who do make it year after year because if everyone went, there would be less business for the rest of us). Those events are for the purpose of learning (more money), improving your service (more money), networking for referrals (more money) plus, plus, plus. There is a reason they are put on to begin with.
I have always learned a valuable skill at each event that I have ever gone to and been able to implement it into my business as soon as I returned! If you are serious about your career, you need to FIND a way to get to the BIG SHOW. If I had never gone to a convention in my life, there is no way I could put up the sales numbers that I have over the years! If you can find a way to go, it will be the best investment you could ever make in yourself and in your business.
Re-Posted from Vince's Blog: www.headofrealestate.com, September 12, 2009
What is your EXIT strategy?
No doubt you inform your buyers and sellers about the best case scenario and often times the worst about how to best exit from their current property into the next or how to exit from the world of renting to home ownership. You run the numbers; you listen to their loan officer and you do the comps on the property they have chosen.
These duties are in your job description and this is your chosen field. For many it is their chosen career. Now what about you? Do you have an exit strategy? I am talking retirement. Have an IRA, Roth, 401k, investments, SS perhaps the equity in your residence. How have they fared lately in the current 2009 economic climate? Not well for most.
EXIT Realty has another option for you. Sponsorship! To assist the company in growth corporate rewards their agent for sponsoring and mentoring their Sponsoree’s to success. Monetary reward; paid by corporate. Not only does this accentuate the company it fosters success because people mentor their cohorts! Your Sponsoree will like the idea of repeating the process not only because it feels good to be successful but because it feels good to teach someone and it feels good when there is a monetary reward! This creates a second stream of income called RESIDUAL for the sponsor at 10% of the Sponsoree’s annual income.
Additionally, we have an EXIT strategy! Our name is EXIT so we have to have an EXIT strategy. When a sponsor retires they continue to collect the residual income of their Sponsoree at a rate of 7%. This income is also designated to a beneficiary at 5% when the sponsor makes the final EXIT. That is my EXIT strategy. What is yours?
reposted from Linda Landry's Real Estate Blog, September 19, 2009. http://lindalandryrealestate.wordpress.com/2009/09/19/what-is-your-exit-strategy/
These duties are in your job description and this is your chosen field. For many it is their chosen career. Now what about you? Do you have an exit strategy? I am talking retirement. Have an IRA, Roth, 401k, investments, SS perhaps the equity in your residence. How have they fared lately in the current 2009 economic climate? Not well for most.
EXIT Realty has another option for you. Sponsorship! To assist the company in growth corporate rewards their agent for sponsoring and mentoring their Sponsoree’s to success. Monetary reward; paid by corporate. Not only does this accentuate the company it fosters success because people mentor their cohorts! Your Sponsoree will like the idea of repeating the process not only because it feels good to be successful but because it feels good to teach someone and it feels good when there is a monetary reward! This creates a second stream of income called RESIDUAL for the sponsor at 10% of the Sponsoree’s annual income.
Additionally, we have an EXIT strategy! Our name is EXIT so we have to have an EXIT strategy. When a sponsor retires they continue to collect the residual income of their Sponsoree at a rate of 7%. This income is also designated to a beneficiary at 5% when the sponsor makes the final EXIT. That is my EXIT strategy. What is yours?
reposted from Linda Landry's Real Estate Blog, September 19, 2009. http://lindalandryrealestate.wordpress.com/2009/09/19/what-is-your-exit-strategy/
Friday, September 11, 2009
What is a Short Sale?
reposted from John Reay & EXIT Realty Sunrise The Cape Coral Short Sale Expert
As real estate professionals, many of us assume that the general layperson understands the term “Short Sale” or as we called them in the early 90’s, “Short Pays.” We owe it to the people we serve to let them know that walking away from a home you live in is the worst mistake you can make. A foreclosure on your credit report is worth about 400 points. A Short Sale, 100 points (depending on how long it takes to sell and how many payments you miss).
Here is an example and a way to explain it to a consumer not familiar with what a Short Sale is: Assume you own a home you purchased in 2005 for $650,000. You have a first mortgage of $500,000 and a second for $150,000. In July of 2009, you lost your job or took a pay-cut at work or your adjustable rate adjusted and now the payments are out of reach, you just can’t make them anymore. I will assume in this example that your house is now worth $400,000. Keep in mind, it is very doubtful that the second mortgage will do anything except call and harass you. They have ZERO leverage with you. If they were to foreclose, they would have to pay off the first mortgage of $500,000. NO WAY they will do that and lose more money.
You can call your local Realtor (one who HAS EXPERIENCE in Short Sales) and put the home up for sale. We assume the house goes on the market for $405,000 and you get an offer for $390,000. In a nutshell and if you qualify for a Short Sale (in other words, if you have $500,000 in the bank you can forget it), the bank will consider a far market value offer. They will send an appraiser out to look at the home and get another opinion as to the value. If your Realtor did his or her homework, there will not be issues here. In this example, I get the second mortgage to take a $7,000 pay-off and they will release the second mortgage (first mortgage holder will pay this money to the second mortgage holder). The first lien holder agrees to sell at this reduced,current market value amount.
In MOST cases, they will release the homeowner from the difference (no judgement), if you have the right people representing you and you qualify.
The above EXAMPLE would put this homeowner back on their feet in less than a year. This sale cost the Seller about 100 points on his credit report. Since credit is based on “what have you done lately,” this person makes all his other payments on time for say 18 months, and he is ready to buy another house sooner than they thought! Most important, THIS WILL COST THE SELLER OF THE HOME NOTHING! The Bank or lien holder will pay your closing costs including the Realtor fees.
The worst thing you can do is just walk away from your house and do nothing. It is always my recommendation that you also include a real estate attorney to help with the process, since that attorney will usually be in a position to do the closing, most will be more than happy to help you in exchange for selecting their title company to do the closing (that is how they get paid).
As real estate professionals, many of us assume that the general layperson understands the term “Short Sale” or as we called them in the early 90’s, “Short Pays.” We owe it to the people we serve to let them know that walking away from a home you live in is the worst mistake you can make. A foreclosure on your credit report is worth about 400 points. A Short Sale, 100 points (depending on how long it takes to sell and how many payments you miss).
Here is an example and a way to explain it to a consumer not familiar with what a Short Sale is: Assume you own a home you purchased in 2005 for $650,000. You have a first mortgage of $500,000 and a second for $150,000. In July of 2009, you lost your job or took a pay-cut at work or your adjustable rate adjusted and now the payments are out of reach, you just can’t make them anymore. I will assume in this example that your house is now worth $400,000. Keep in mind, it is very doubtful that the second mortgage will do anything except call and harass you. They have ZERO leverage with you. If they were to foreclose, they would have to pay off the first mortgage of $500,000. NO WAY they will do that and lose more money.
You can call your local Realtor (one who HAS EXPERIENCE in Short Sales) and put the home up for sale. We assume the house goes on the market for $405,000 and you get an offer for $390,000. In a nutshell and if you qualify for a Short Sale (in other words, if you have $500,000 in the bank you can forget it), the bank will consider a far market value offer. They will send an appraiser out to look at the home and get another opinion as to the value. If your Realtor did his or her homework, there will not be issues here. In this example, I get the second mortgage to take a $7,000 pay-off and they will release the second mortgage (first mortgage holder will pay this money to the second mortgage holder). The first lien holder agrees to sell at this reduced,current market value amount.
In MOST cases, they will release the homeowner from the difference (no judgement), if you have the right people representing you and you qualify.
The above EXAMPLE would put this homeowner back on their feet in less than a year. This sale cost the Seller about 100 points on his credit report. Since credit is based on “what have you done lately,” this person makes all his other payments on time for say 18 months, and he is ready to buy another house sooner than they thought! Most important, THIS WILL COST THE SELLER OF THE HOME NOTHING! The Bank or lien holder will pay your closing costs including the Realtor fees.
The worst thing you can do is just walk away from your house and do nothing. It is always my recommendation that you also include a real estate attorney to help with the process, since that attorney will usually be in a position to do the closing, most will be more than happy to help you in exchange for selecting their title company to do the closing (that is how they get paid).
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