GLENN's Blog

Can You Survive on 3 Kernels of Corn a Day?

GLENN LEACH (THE LEGACY GROUP) — Fri, 20 Nov 2009 16:11:06 -0600

As we approach our annual turkey fest, it is worth taking note of the real lesson the Pilgrims taught us. We're going through some tough times economically all across our land, but NOTHING like the earliest Americans experienced during their first two years on American soil.

To finance the cost of trip to this new land, the Pilgrims had to make a "deal with the devil". A group of investors advanced them the funding, but the cost was incredibly high. HALF of everything the Pilgrims owned and produced in this land for the first SEVEN YEARS belonged to these investors. Think 50% income tax, 50% shared appreciation of all improvements, 50% confiscation of anything produced that had value. Half - right off the top.

"Where were the predatory lending laws then, huh?"

And to control the situation even more, the investors put another caveat into the deal: No one would be allowed to own personal property until the terms of the contract were fulfilled. All food and goods produced would be shared equally amongst the group. Each family would be assigned plots of earth to plant and the harvest would be put into a public storehouse for redistribution according to need. And private structures would not be allowed.

"Redistribution of Wealth? How'd that work out for ya?"

Share and share alike. Everyone work hard for the good of the group. "Unite, and there will be plenty for all" was the message being preached. Did it work out that way? Not a chance. Records show that many of the inhabitants simply refused to work and relied on the group to take care of them. Resentment, bickering, and open hostility grew far faster than the crops.

The result of this redistribution of wealth idea? HALF OF THE PILGRIMS DIED DURING THE FIRST 2 YEARS - starvation, disease (mostly scurvy - an affliction caused by malnutrition and lack of vitamin C), and exposure to the elements due to inadequate shelters were the main causes. During the second winter - after they should have had storehouses overflowing with the summer's harvest - a typical daily ration of food was 3 KERNELS OF CORN PER DAY PER PERSON. You see, even faced with death, people would NOT put out maximum work effort (or any effort at all) in such a system. The Pilgrim experiment was about to fail.

"You produce it - You keep it."

William Bradford made a decision that second winter to change things. He had taken over leadership of the group after the original leader got sick and died the first year. Bradford announce before that winter was over a new system: Each family would now OWN a plot of earth to farm, build a home on, do with what they pleased. Investors be damned - the system of share and share alike was over. You produce it - You keep it. If you have extra - you are free to sell or barter or give it to other members of the group.

This new system motivated families to prepare their fields early and tend the fields properly knowing this was an opportunity to get ahead. The result was a HUGE early harvest - and a HUGE harvest feast celebration - the one the Pilgrims invited the Indians to and the one we model our own Thanksgiving celebration after. And no one in the group went hungry that winter. Read that last sentence again!

In our current environment of bailouts and financial market meltdowns, let us learn the lesson the Pilgrims taught us. The key to economic survival and prosperity is Land & Home Ownership and Individual Economic Freedom. Allow people the ability to choose their economic path and use the fruits of their labor the way they want to, and our country will survive this and continue to be the shining light on the hill for the world to see. Go back to redistribution of wealth and central control - like what the Pilgrims faced - and our country will be in for a long hard winter.

"God helps them that help themselves." Benjamin Franklin

Corn Kernel Photo by: ingridtaylar

Prayer Hand Photo by: hpebley3

Making sense of the tax credit extension

GLENN LEACH (THE LEGACY GROUP) — Fri, 13 Nov 2009 14:16:42 -0600

Okay, I think I get it now and I'm ready to give you the scoop on the new law. I know this news has been circulating around for awhile now, with many industry professionals trying to be the first to tell you the new rules, but up until now - I still had questions that I couldn't find answers to and much of the information I was getting didn't jive with other information I was getting. So, this may not be the first you've heard about this stuff, but I believe it is accurate.

No big changes to the First Time Homebuyer tax credit, except now you can claim it if you're in a higher income bracket. (Questions on this? Easy to find income limits on-line or call me.) Extension applies to homes under contract by April 30th, 2010 and the deal closed by June 30th, 2010. (For a refresher on the First Time Homebuyer tax credit, visit http://www.credittothewise.com/mortgages/free-irs-money-for-home-buyers )

For existing homeowners, you can get up to $6,500 if you buy a new primary residence (same contract and close dates). You don't HAVE to sell the current primary residence, but you do need to live in the new primary residence. (And don't think you can cheat on this - they'll be checking! With the many fraudulent claims the IRS received for the current programs - which was claimed by toddlers and pets and people who didn't even buy a home - don't expect the IRS to let you skirt by on this requirement. There are MANY places they can find out, the most obvious ones being the mailing address you put on your tax filings in the next few years and your documentation of rental home income - Oh, and there's a census coming up next year too!)

In order to qualify, you MUST have owned and lived in your old or soon to be old home for at least 5 years and sold it in the past 3 years. This is the one really confusing part of the bill - but I think I have it now, and I hope I can explain it to you.

Example A: Owned a home for 5 years and sold it in 2008 and have rented since. You qualify for the tax credit because you satisfy the 5 year rule and sold in the past 3 years and didn't own another primary residence since then.

Example B: Owned a home for 5 years, sold it in 2008 and bought another one right away. Now you want to sell this home and buy another one. You do NOT qualify for the tax credit because you've owned your current home less than 5 years. The tax credit is based on the most recent home you've owned.

Example C: Owned current home for 5 years, want to buy a new home and turn the old one into a rental home. You qualify for the tax credit. But if you do not live in the new home as your primary residence for at least 3 years, you will be obligated to pay back the tax credit. And if you are found to be claiming the tax credit fraudulently, you'll also have severe tax penalties to deal with too.

Example D: Owned a home for 5 years and sold it in June 2006 and have rented since. You don't qualify for the existing homeowner tax credit because you qualify for the $8,000 first time homebuyer tax credit. Anyone who hasn't had homeownership interest in a home in the past 3 years qualifies as a first time homebuyer.

So, that's the basics. (Ask me about joint ownership, community property rules, parents co-signing for kids, etc - too lengthy to get into here). I hope that helps you make sense of the new law and if you need help taking advantage of this great incentive - let me know. I do mortgage lending, ya know. Always happy to help!

Puppy photo by: Randy son of Robert

Jail photo by: JOPHIELsmiles

Choosing a Variable Rate is like Ordering a Pizza

GLENN LEACH (THE LEGACY GROUP) — Wed, 11 Nov 2009 15:56:39 -0600

Mortgages can be confusing, but sometimes there are simple answers to tough questions like this one:

"Should I pick an adjustable rate mortgage, like a 3/1 or 5/1 ARM, or go with a 30 year Fixed Rate?" How many times has a buyer or borrower asked you that question? How do you help them choose in a way that makes sense to them?

I've found that "Pizza" is the best illustration to use to help them understand this question. If I give this illustration, it all of the sudden makes sense to a borrower and allows them to make an informed and confident decision. Here's what I'm talking about:

When you go in to a pizza parlor to order a pizza, you have to decide "What Size" to choose. Some places have only a couple of sizes to choose from, other places have as many as 6 sizes to pick from. How do you choose?

"If you're looking to get maximum value for your money..."

Well, if you're looking to get maximum value for your money, you can start calculating the cost per square inch of each size. Since pizzas are round, you'll have to pull out your handy geometry cheat sheets (I can still see mine faintly etched on my forearm - where I wrote down the formulas to help me get through those high school math tests) to get through the diameter, radius, pi-r-squared issues.

You'll soon discover that in most pizza places, the larger sizes cost you less per square inch than the smaller sizes. (This is why, when buying for large groups, you avoid buying individual personal-sized pizzas for each person and instead go for the largest sizes for everyone to share.)

"Why would you EVER buy a smaller size?"

After you've figured out that you get more value per square inch out of the largest sizes, why would you EVER buy a smaller size? The answer, when buying pizza, is obvious to you. If you're by yourself, for example, and buy an extra large pizza because it's the best per-square-inch value, but eat only a few slices and throw the rest away - you've wasted your money. Yes, you bought the best "total" pizza value, but by NOT USING the entire pizza - you wasted your money.

The answer to your pizza buying size question, therefore, comes down to "How much pizza will I use?" To get the most for your money, you should always buy the largest size you will actually use. And so it is with choosing a mortgage ARM or Fixed Rate product. Huh?

The assumption I will ALWAYS use when comparing an ARM with a Fixed Rate mortgage is that over the entire 30 year term, the 30 year Fixed Rate loan will cost you less than an ARM - which tends to start out with a lower interest rate for a few years and then will eventually adjust higher. So if you're going to keep the loan for the entire 30 year period, a 30 year Fixed Rate loan is - just like the extra large pizza - the best value per year (per square inch).

BUT, if you take out a 30 year Fixed Rate loan and only keep it for a few years, it is just like buying that extra large pizza, eating a few slices, and throwing the rest away. If you ABSOLUTELY KNOW that you are only going to keep that mortgage for a few years, then you need to give serious consideration to choosing an ARM if the rate you can get is less than the 30 year Fixed Rate.

A final word of caution: Be sure to buy ENOUGH pizza to start with. It is not good to find out you don't have enough to feed everyone because it is a hassle and expensive to go back and order some more after people have already started eating. Likewise, be sure to get ENOUGH term on your ARM to start out with. If you think you'll stay in the home for 3 years, but aren't 100% sure, you may want to get a 5/1 ARM to start with - just to be sure you'll have enough.

Don't get caught short - almost EVERYONE expects rates to rise significantly in the future, so don't get stuck with a house payment you can't afford.

photos by: David de Groot & Randy Son of Robert

99 Ways to Get Out of Debt and Build Wealth - Lesson 1

GLENN LEACH (THE LEGACY GROUP) — Fri, 23 Oct 2009 18:30:21 -0500

The following stories are from my new database email "marketing" series called "99 Ways to Get Out of Debt and Build Wealth". I'm tired of all the past clients who are calling looking for foreclosure avoidance, loan modifications, and short sales advice, so I thought I'd put together a series dealing with financial management lessons to help these folks BEFORE things go bad.

When I offered this series to my database and made them "opt in" by emailing me back and requesting it - I had over HALF my list ask for it. That was a much larger response than I expected - validation that people are hurting and searching for answers - and they are sending my stories to people they know, increasing my reach and influence in my market.

I've posted the first few lessons in the series here. These first stories set the stage and later lessons will offer real, specific, how-to ideas and advice on reducing debt, earning more money, saving and investing, and protecting wealth.

The response so far has been fantastic - with the list growing every day and new loans coming my way too. The real joy is I feel like I'm helping people who may not have ever heard these ideas before or who just need a good reminder of sound economic strategies. Maybe I can keep a few people off the foreclosure notice rolls and help a few families avoid financial collapse or enjoy financial peace of mind.

Lesson #1: The National Biscuit Company

In 1898, during a time of significant economic upheaval and world political turmoil, 114 independent bakeries - mostly mom-n-pop shops - all across the US joined forces and formed "The National Biscuit Company". Just how bad was the business climate then? Let's see...

The US had just declared war on Spain (the beginning of the Spanish/American War), and any conflict between these two world superpowers would surely upset trade, supplies, and manpower around the globe. The US monetary system was facing great uncertainty as politicians debated our "gold standard", threatening the very value of the dollar itself and economists feared the worst in terms of inflation and wealth erosion. China was unstable with a new authoritarian leader, a peasant uprising, and violent opposition towards anything "Western". And a great Bubonic Plague was rapidly spreading death and fear throughout Asia and beyond, and it would eventually kill over 3 million people worldwide. (Sound familiar? US at war, dollar under attack, problems in China, a potential plague - Swine Flu? Hmm...)

In the midst of this turmoil, these 114 bakeries consolidated, pooled their resources, agreed to cooperate, and determined to face an uncertain future together. Streamlining distribution channels, combining production capacities, and using vastly increased buying power to negotiate better pricing with suppliers, the new entity was able to significantly reduce costs and increase production. (Ooh, was that too obvious so early in our lessons on how to get out of debt and build wealth? Reduce costs? Increase production? Sorry about that.)

The next three articles in the series will share some specific strategies that helped propel The National Biscuit Company to greatness. (Oh, in case you don't recognize the name, they later shortened the name to something you may recognize easier: Nabisco.) But the first lesson in our "99 Ways to Get Out of Debt and Build Wealth" has to do with the formation of the company itself. Don't miss this lesson - it may be the most important one in the whole series!

Just like these individual bakeries, you may be facing an uncertain future. The key to their survival was to join forces and slash costs, increase production, and work towards a common goal. Do you have people in your life whom you need to involve in your debt-reducing / wealth-building journey? Your spouse? Your kids? Your support network? Benjamin Franklin admonished his fellow Founding Fathers and patriots with "We must all hang together, or assuredly we shall all hang separately." Who in your life do you need to "hang together" with?

Lesson #1: If you're ready to make positive changes to your financial situation, start by having a frank money conversation with your significant other(s). Realistically assess where you are currently at and where you'd like to go. Understand that there may be sacrifices to make. Promise to support each other. Be excited about the future these changes will help you create. Dare to dream big and pledge to enjoy the journey, come what may. Together, the burden will be lighter and the rewards will be greater!

(photo by Laverrue

99 Ways to Get Out of Debt and Build Wealth - Lesson 2

GLENN LEACH (THE LEGACY GROUP) — Fri, 23 Oct 2009 18:19:45 -0500

(From my series "99 Ways to Get Out of Debt and Build Wealth")

Lesson #2: Of Course Uneeda Biscuit - Certainly!!!

As we learned in lesson one, The National Biscuit Company was up and running in 1898, reducing costs and increasing productivity for the 114 formerly independent bakeries. But to take full advantage of the new business arrangement, "Nabisco" needed to move towards producing uniform nationally-distributed products rather than relying on specialty-type local or regional offerings. What was needed was a new, exciting flagship product to introduce the company to the nation and get all the bakeries on-board. After much consideration, a surprising choice was made.

At this time, a common item in any grocery store was a large, typically round, wooden container filled with loose crackers. Patrons, especially children, would come in and help themselves to one or two - maybe a handful - to munch on while they shopped. Catching up on the latest gossip or political news while gathered around the "cracker barrel" was a common social event.

You could buy these crackers by scooping them out and filling a paper bag, but most shoppers thought of "crackers" much the same way that today's Costco shoppers think of the free samples available up and down the aisles there: Something to entertain your taste buds or stuff in your kids' mouths to keep them quiet while shopping and a small price for the grocer to pay to keep you happy and shopping there.

So was it smart that the first nationwide product from The National Biscuit Company was set to compete against something you could grab for free most places? Probably not, but that was the plan, and the "Uneeda Biscuit" was born. Nothing more than a common-tasting cracker, it was called a "biscuit" because that sounded "more elegant" and the name would appeal to an adult consumer.

Visually, instead of the irregular round or square shapes of common crackers, the Uneeda Biscuit was introduced in a precise octagon shape - noticeably "uncommon" in appearance. And instead of having to scoop out handfuls of loose and broken pieces from the "who touched this before me" cracker barrel, the Uneeda Biscuit was the first product ever sold in the new "In-Er Seal" box - an air-tight waxed-paper & cardboard carton to "seal in the freshness".

And the Uneeda name itself demanded attention, especially when presented in this carefully sequenced campaign slogan:

"Do you know Uneeda Biscuit?

Do YOU know Uneeda Biscuit?

Do you KNOW Uneeda Biscuit?

Of Course Uneeda Biscuit!!!

Of Course Uneeda Biscuit - Certainly!!!"

Ahh... Advertising magic! The Uneeda Biscuit, the first product to carry The National Biscuit Company name nationwide, was a huge success. And its success laid the groundwork for many more successes to come (like those in our next two lessons). Sadly, the Uneeda Biscuit was discontinued in 2009 after 110 years of production, but it definitely served its purpose of getting Nabisco off to a good start.

What's Lesson #2 in our "99 Ways..." series? This story highlights that you don't have to accept "joint wisdom" as being absolute truth. Even though the "joint wisdom" in 1898 dictated that crackers should be sold from cracker barrels, Nabisco went a different way and enjoyed tremendous success because of it. Many of the lessons in this series will also question the absolute truth of some common "joint wisdom" concepts. I hope the lessons will help you change or improve the financial decisions you are currently making and get you thinking in new directions. If nothing else, the stories will give you something to talk about with friends and family around your "cracker barrel".

(photo by yaybiscuits123's)

99 Ways to Get Out of Debt and Build Wealth - Lesson 3

GLENN LEACH (THE LEGACY GROUP) — Fri, 23 Oct 2009 18:17:39 -0500

(From my series "99 Ways to Get Out of Debt and Build Wealth")

Lesson #3: Your "Little White String" Could Make ALL the Difference

In 1840, Albert - son of the Duke of Saxe-Coburg-Gotha (Germany) - married his English cousin, Queen Victoria, beginning one of the greatest stories of love, romance, power, and political intrigue in history - one that captivated the world and influenced generations across the globe. This "lesson" begins with an old German tradition that Prince Albert introduced to Windsor Castle in 1841 - the Christmas Tree - with such smashing success that within a few years, most English homes included a decorated Christmas tree in their holiday decors.

In 1843, English writer Charles Dickens, capitalizing on the building enthusiasm for the Christmas season and needing quick cash to pay for his wife's 5^th pregnancy, hurriedly wrote A Christmas Carol and introduced the phrases "Bah, Humbug" and "Merry Christmas" to the English language. A few years later, he revisited the Christmas theme with a series of some Christmas stories titled, surprisingly, Some Christmas Stories.

In a story from this series titled, A Christmas Tree, Dickens offered a glimpse of how English Christmas Trees were properly decorated. He described a tree covered with dolls and dollhouse furniture, miniature musical instruments, watches, costume jewelry, toy guns and swords, fruit, candy, sugar plums, nuts, toys, games, and, as one astonished child in the story exclaimed, "everything, and more". You've sung it - "presents ON the tree".

Dickens and his books were wildly popular in America. His stories, along with other influences from England, increased America's interest in Christmas and helped shape our holiday traditions. In the 1890's, Christmas trees became common place in American homes, albeit we preferred large floor-to-ceiling versions rather than the 4' or less tabletop models the English preferred.

This background brings us back to Nabisco. In the Spring of 1902, Nabisco rolled out a new offering - Barnum's Animals. Named after P.T. Barnum's traveling circus (The Greatest Show On Earth), these animal shaped cookies were modeled after animal shaped English Tea Biscuits - all the rage in England at the time. Selling for 5 cents, each bright red "In-Er Seal" box was made to look like a circus train car with a collection of 18 assorted animal shapes inside.

A quality product, sealed for freshness, fun looking, based on an already successful idea (English Tea Biscuits), named after the most famous showman in the world (P.T. Barnum), it enjoyed moderate success when it was introduced that Spring. But then Nabisco decided to add something extra to the product offering - with a completely unexpected result.

Inspired by Prince Albert's and Charles Dickens's example, American families would put up their trees on Dec. 24^th, and children would awake Christmas morning to find the tree decorated with lit candles, brightly colored toys, treats, and decorations. And that year, 1902, somebody at Nabisco came up with the idea (Inspired by Dickens?) that Barnum's Animals would make an excellent "surprise" for children to find on the tree Christmas morning.

For easy hanging a "little white string" was attached to each box of Barnum's Animals and a promotional campaign spread the message - and it was a HUGE success. Children enjoyed the cookies, but the unexpected result was that the "little white string" turned each cookie box itself into a play toy. Girls used them for little purses. Boys used them to carry their jacks and marbles and tiddlywinks. When Nabisco removed the string from boxes after the holiday, customers threw tizzy fits and grocers had to "fix" the defective boxes themselves until Nabisco could send new shipments with strings attached. And over a hundred years later, that "little white string" is still there.

The lesson to learn from this very successful product is that many of the ideas I'll be sharing with you can and do work - but until you put your own "little white string" on them - your own personality, ideas, experiences - they may not produce the results you desire. So as you read, I hope the lessons will inspire you to find ways to solve your debt problems. And adding your own "little white string" could make all the difference.

(photo by Lunchbox Photography)

99 Ways to Get Out of Debt and Build Wealth - Lesson 4

GLENN LEACH (THE LEGACY GROUP) — Fri, 23 Oct 2009 18:15:15 -0500

(From my series "99 Ways to Get Out of Debt and Build Wealth")

Lesson #4: Got Milk?

Spurred by earlier successes (Uneeda Biscuits, Barnum's Animals, Fig Newtons, Nabisco Wafers - still sold under the name "Bisco's" in parts of the country - to name a few), Nabisco was anxious to introduce even more products to the national market. These national products provided the 114 Nabisco bakeries with a steady stream of consistent income and a huge competitive advantage as they continued to compete for less-consistent local production business.

Four noteworthy national introductions were made in 1912. First was a simple square shortbread cookie - good taste, but nothing spectacular about it. Adolphus Green, Founder and President of Nabisco, knew the importance of having the right name for a product (Think back to Barnum's Animals and naming a simple cracker product Uneeda Biscuits), so the shortbread cookies needed a good name too.

Earlier in his life, Adolphus Green made his living as a teacher, a high school principal, and a librarian, so it's no surprise that many of his business ideas had roots in classic literature. Hmmm... Shortbread was associated with Scotland, so the name should be something Scottish, right? What to do?

In 1869, R.D. Blackmore published a hugely successful novel based in Scotland - a tale of love, murder, revenge, with a cliff-hanger ending. A favorite romance novel of women everywhere, this book enjoyed surprising "cross-over" success with men, even being voted "Book of the Year" in 1906 by male students at Yale. Scottish? Popular? Perfect! If you recognize the name "Lorna Doone Shortbread Cookies"? (The title and lead character of the novel), now you know where the name came from. And it's still a big seller for Nabisco.

"Spectacular results" were expected from the next two 1912 offerings:

1) "Veronese Biscuits" were a "deliciously hard, sweet cookie of beautiful design and high quality" based on the Italian cookie concept. Although this Italian cookie concept has been recently revived in the U.S. as an espresso accompaniment (think "Biscotti Biscuit"), in 1912 it was a huge flop and was quickly dropped.

2) "Mother Goose Biscuits" were based on the most popular children's books of the day and featured various story book character designs. Parents, who found it delightful to watch their children systematically devour a Barnum's Animal (Studies show rear legs first, then the front legs, then the body, and finally the head), were horrified as they watched their children do the same thing to Little Bo Peep and Jack & Jill cookies. Somehow, seeing their children eating other children just seemed wrong. After a stream of complaints poured in, this cookie was dropped too - another unexpected failure from a "can't miss" idea.

Another new cookie was put on store shelves that year. With no record of who came up with the idea or how it was named, this simple cookie of "two embossed chocolate flavored wafers with a cream filling between" hit the shelves. The "Oreo Cookie" has outsold every other cookie on the market for almost 100 years. Almost 500 BILLION have been sold since they were introduced - launched with no fanfare, no big marketing campaign, no high expectations - but they found the right audience at the right time because Nabisco gave it a try.

What's the lesson? If you want to change your life, kill off your debt, improve your earning power, grow your wealth - then take ACTION! Keep reading. Try some new things. Take some chances. Don't expect everything to work - failures will happen - but without ACTION, you'll NEVER find YOUR version of the Oreo Cookie - a huge, unexpected success - that could completely change your life.

(photo by SMercury98)

Self-Employed and Tax-Returns...

GLENN LEACH (THE LEGACY GROUP) — Fri, 11 Sep 2009 11:40:39 -0500

One of the biggest casualties of the current tightening of mortgage guidelines has been Self-Employed Borrowers. This month, I've had two applications that I've had to turn down for lack of income even though each of these applicants was generating thousands of dollars in "revenue" each month. The reason the applications were turned down was because too much of their income was written off on their tax returns.

Even though the write-off's were a legitimate and legal way to reduce their tax liabilities, they also left too little bottom-line income to qualify for a mortgage loan. In the past, these applicants' loans would have been approved using one of the less-stringent loan programs. But today those "less-stringent" programs no longer exist - so these folks can't qualify for a mortgage anymore.

You may insert your own personal value judgment here about whether this is good or bad for our economy or the housing markets and whether it is fair or unfair. I mention it because it is a major change in lending and self-employed borrowers need to be aware that if they are trying to buy a home in the future, they will need to prove 2 years' worth of satisfactory "bottom-line" income to qualify.

But rumors circulating around right now also raise another concern for self-employed borrowers:

With the government buying up massive amounts of mortgage loans through Fannie Mae & Freddie Mac purchases - funded by the recent "Stimulus" packages - word is that the IRS (another arm of the government) is starting to compare the loan applicant information with tax return information. Until recently, Fannie & Freddie were not government-run organizations, but now that they ARE, will they be freely sharing data with the IRS?

"How can you afford to pay a mortgage payment that is higher than your income?"

Let's say your loan was purchased by Fannie Mae and your mortgage payment is $3,000 a month. What happens if the IRS cross-references your tax return info with your loan application info and discovers that, after all your write off's, you are claiming less than $3,000 a month in income? The logical question is then, "How can you afford to pay a mortgage payment that is higher than your income?" Will this trigger an Audit? Many insiders are suggesting that soon it will.

Is this a bad thing for the IRS to do? Probably not. This could be an effective way for them to root out tax cheats, under-the-table earners who aren't paying their fair share of taxes, and even possibly find terrorists and drug dealers. But it will also cause extra hardship on individuals who have lost their jobs or their businesses are down and they have been making their payments from savings.

In reality, if this policy does go into affect, it'll probably be like them red light runner ticket cameras: If you're not running red lights, you have nothing to worry about, but I can't help feeling like my privacy is being invaded every time I drive through those intersections.

Join the Rally for a 58 Hour Work Week!

GLENN LEACH (THE LEGACY GROUP) — Fri, 04 Sep 2009 11:27:52 -0500

Monday, Sept 7^th, is your chance to hit the streets and join your fellow workers to demand a 58 hour work week! Labor Day is here again, so don't be afraid to rally for your rights!

The Toronto Typographical Union had been on strike since early March 1872. On April 14^th a parade was organized to support the workers' fight for a 58 hour work week. 27 other unions showed up to support the Typographical Union's cause and a large - mostly peaceful - parade and rally ensued.

Canadian politician George Brown (who was also the editor of the Toronto Globe, whom the workers were striking against) ordered police in to break up the rally and 24 union leaders were arrested. But the strike continued and the situation was becoming increasingly tense. (Not to mention that the Toronto Globe newspaper was probably unreadable and full of typo's without the services of the Toronto Typographical Union workers.)

On September 3^rd of that year, another rally was planned to protest the arrests of those 24 union leaders, and the result was a promise from Canadian Prime Minister John A. McDonald to repeal the current Canadian anti-union laws, leading eventually to workers having the right to a 58 hour work week! Woo Hoo! As annual rallies commemorating this first rally continued, the work week was further slashed to a standard 54 hour week.

American labor leaders followed the Canadian lead, and on Sept 5^th, 1882, the first annual Labor Day parade was organized by the Knights of Labor in New York City. 12 years later, in 1894, US President Grover Cleveland signed Labor Day into law as an official National Holiday (Shortly before this, he had ordered the US Military to crush a railroad workers strike in Pullman, Illinois, resulting in 13 dead and 57 wounded strikers - so let's have a holiday!).

The purpose of Labor Day was outlined in that first proposal: A street parade to exhibit to the public "the strength and esprit de corps of the trade and labor organizations," followed by a festival for the workers and their families. And this became the pattern for future celebrations (speeches by politicians looking for votes were added later).

Today, most people simply view the day as the last vacation day of summer or the day to get a really good financing deal on a refrigerator, and have little understanding of the origin of the day. But before these rallies began, the typical work week consisted of 12 hour days, 7 days a week - 90 to 100 hours a week (Now only wives and mothers have to work that kind of inhumane schedule - right Honey?). Getting down to only a 58 hour work week - eventually leading to our standard 40 week - was a long and difficult process.

As you prepare for your end of summer Labor Day celebration, remember how we got here. And if you are struggling to make ends meet these days, but are thinking it's not possible to work more than 40 hours a week - think again. It wasn't that long ago that 40 hours was less than half a work week. If you have success and financial security working 40 hours a week - count your blessings. If you aren't quite making it - consider rolling back the clock to 1872 and trying, for now, a 58 hour work week as a temporary solution to your money woes.

Need ideas on how to earn more money? Check out my website www.credittothewise.com. Although I'm early in my process, I've been searching out ideas on how to make more money at your current job, and how to earn extra money on the side and I've started posting these articles here. If you have ideas that you think I should share with others, please email add them to comments. I want to encourage people to work and fight themselves out of their tough times rather than waiting for bail-outs or government help, and many people I talk to just don't know how to start doing that.

Happy Labor Day!

Strike Rally photo by: andydr

Grover Cleveland photo by: Forever Wiser

2009 Washington Women Veterans Summit

GLENN LEACH (THE LEGACY GROUP) — Thu, 03 Sep 2009 12:23:26 -0500

I'm so excited about being asked to speak at this year's Washington Women Veterans Summit, being held Sept 12, 2009 at the Greater Tacoma Convention & Trade Center. This is a huge FREE all-day event offering workshops, networking, and hundreds of exhibitors offering services and information for Women Veterans.

When I first entered the mortgage business after a successful stint as a sales training manager under Sunny Kobe Cook of Sleep Country USA fame, I was very nervous about working in such a volatile industry and scared about whether or not I could attract enough clients on my own. Sunny had a way of making sure we always had a steady stream of customers to serve. Like her ads or hate her ads, people came in to buy her products.

"I was right to be nervous..."

Turns out I was right to be nervous about the mortgage biz. I would have months where I had too many customers to serve properly, followed by months where I couldn't find a customer to save my life. I would embark on month's long campaigns focusing on a certain type of borrower or lending program, start reaping the rewards from the effort, only to wake up one morning to news that guidelines had changed, programs or products had been eliminated, and I no longer had anything to offer these potential clients I had spent so much time and effort attracting.

"I've Learned So Much About Myself..."

This roller coaster ride was exciting and challenging, filled with extremes of exhilaration and frustration. I'd start each day believing I could do it and then face and almost constant bombardment of roadblocks and doubt. Yet I continued on because each client that I successfully helped brought joy and satisfaction and hope for tomorrow. Through it all, I've learned so much about myself, about risk vs. reward, about money, success, perseverance, and security.

As I've dealt with clients who are struggling - hit hard by the economy, being affected negatively by the changes in lending, living under the assumption that home values always go up, that jobs last forever, that disaster cannot happen to them, and that credit will always be available to those who need it - I've been working on solutions and strategies to help people succeed, regardless of outside forces. I'm driven by the desire to help my folks get from "Here" to "There", regardless of where their "Here" is right now.

"Help for those struggling with credit, debt, spending, earning..."

That is why I am so excited about being asked to present at this Summit. It has given me a deadline to gather and organize and compile these ideas I have. I've created a website where I've loaded a bunch of my articles http://www.credittothewise.com/ and set it up in such a way that I can continue to add to it. It'll offer help to those struggling with credit, debt, spending, earning - with specific ideas and strategies.

It shares creative ideas about home buying and selling strategies, how to manage your home's equity wisely and safely, and how to grow wealth. The "There" I'm shooting for, for all my clients and readers, is the "Peace of Mind" that can only come through "Financial Security". I'll create my Legacy by helping others create their own Legacies.

"Deadline Registration Sept 7th"

If you're a Women Veteran who wants to register for the Summit, here's the link: http://www.dva.wa.gov/women_vets.html. Deadline for registration is Sept 7^th. Again, it's free, but you have to register! There should be well over 1,000 other attendees there too so don't be surprised to see old friends! And you'll come out of the day with loads of information and resources you didn't know before, better prepared to face an uncertain future.

Learn more about Glenn Leach at http://legacyg.com/gleach.htm

Many DPA's Are Out Of Funds...

GLENN LEACH (THE LEGACY GROUP) — Fri, 21 Aug 2009 15:06:43 -0500

As your First Time Homebuyers face the dreaded Nov 30th $8,000 First Time Homebuyer Tax Credit cut-off date, and they are frantically out there shopping for homes, many of the down payment assistance programs are running out of funds. You may have a preapproval letter in your hand from a lender, but if the source of down payment they were relying on isn't there anymore - you may be in for a rude surprise!

If your buyer is planning on using a DPA, it would be really smart to stay in contact with the lender to make sure that funding is still available. I do most of my business in and around Pierce & King Counties, so here is a quick update on what's happening in this area.

Pierce County Down Payment Assistance: This has been such a popular program that they have recently run out of money and suspended the program indefinitely. I've heard rumors that they may be getting more funding sometime in Sept, but that is only a rumor at this point.
City of Tacoma Down Payment Assistance: They are also running low on funding right now, so they have lowered the subsidy amount. Instead of getting 6% of the purchase price through them, you can only get a maximum of 3.5% of the purchase price.
House Key King County & House Key Seattle: Both of these programs have run out of funding and are no longer listed on the www.WSHFC.org website.

What's Left? Many of the House Key programs are still available. There is always the House Key Plus program (you can check the website for details on income limits per county). This program is available anywhere in Washington. So as long as your borrower's income does not exceed the county limit, they can buy a home with little or no cash to close.

The House Key Rural has been an excellent option for many borrowers. In Pierce County, eligible areas include anything outside the city limits of Tacoma and Puyallup. Check the income limits because they are a lot less than House Key Plus, but this program has a lower interest rate AND does not require a monthly payment, making it far more affordable than House Key Plus.

USDA Rural Housing is an option for properties farther out - but be aware that their turn times for file review is about a month right now (they review AFTER all the rest of the underwriting is done - making this about a 2 month closing situation). You do NOT need to be a first time homebuyer with this program, but if you're trying to close before the Nov 30^th $8,000 FTHB IRS Tax Credit date - this may not be a good option right now as time is running short.

VA is still an awesome option - zero down programs, great rates, fast closings. If you have VA eligibility - you are in really good shape right now.

The purchase market is very active right now. I've been super busy all summer - thank you all very much for sending me your business. Our underwriting times are great right now too - we can close quickly - and rates are still terrific! Call me with your scenarios and I'll help you find the best options for you and your clients.

Should You Pay Off Your Mortgage Early?

GLENN LEACH (THE LEGACY GROUP) — Fri, 31 Jul 2009 15:17:06 -0500

Is It A SMART Financial Move to Prepay Your Mortgage?

I often find myself in long conversations with my borrowers over the best way to pay off mortgages early. Do I recommend the "Bi-Weekly Payment" plan, the "Extra Payment Each Year" plan, or the "Pay A Little Extra Each Month" plan? Since it is assumed that paying off a mortgage early is a smart financial strategy, people are often surprised when I don't have a favorite strategy to recommend.

When I get this question, I try to shift the conversation away from "Which strategy is best?" and towards "Are you sure you want to pay off your mortgage early at all?" While I think it's admirable to get out of debt and stay out of debt, I don't believe "paying off your mortgage early" should be your number one financial priority.

"Paying off your mortgage early should NOT be your number one financial priority"

Instead, I believe you should use your financial resources to prepare for the future and all those mean, nasty twists and turns that life can throw at you. I'm not suggesting a gloom-n-doom approach to the future, but we just don't know what will happen, and paying off your mortgage early may NOT be the smartest financial strategy for you.

My advice is to focus first on building liquid assets (resources you could access with little difficulty to pay for stuff) vs. paper wealth (resources that cannot be accessed easily). Equity in your home falls under the "paper wealth" category because it is difficult to access in an emergency and you may not be able to access it at all when you really need it.

An example of what I'm talking about came across my desk recently. The applicant wanted to refinance his home to access some of his paper wealth. For several years, he had been paying extra on his mortgage and only owed about $70,000 on a home worth around $400,000. On paper, things looked good, but...

I'll leave the gory details of his set-backs out of my story, but when he came to me, his wife had left him and the divorce had drained his bank accounts, he had lost his ability to work due to an injury and lost his business, he was 6 months behind on his mortgage payments, and he was facing total financial collapse. He needed me to help him access some of his $330,000 in equity (paper wealth) to live on.

But because his credit scores were bad and his income was gone, he didn't qualify for a new loan. The bank who owned his mortgage - that same bank he had been paying extra to all those years - wouldn't help him. I'm sure the bank saw his home as a great foreclosure opportunity - all that "paper wealth" made his home an enticing target.

His only solution was to try to sell the home before it was foreclosed on in order to keep some of his "paper wealth", but since he had been so determined to keep his home - not wanting to uproot his children who's mother had just abandoned them - he failed to act quickly enough and now it was too late.

I wish I could tell you his story had a happy ending, but it didn't. What I can tell you is that if this man had had $330,000 of "liquid assets" instead of $330,000 of "paper wealth" - his story would have turned out much differently.

So if you are prepaying your mortgage now, but don't have enough liquid assets available to handle life's emergencies, please remember: You cannot go grocery shopping and tell the cashier,

"I don't have any money, but my mortgage is paid off."

Even on double coupon day, that won't buy you any fruits or veggies.

Grocery photo by: rayced

Target photo by: ###Erika

Hot Summer Nights in Puyallup

GLENN LEACH (THE LEGACY GROUP) — Tue, 28 Jul 2009 13:23:47 -0500

Hot Summer Nights in Puyallup

Ahhh... Summer in Puyallup - those 7 days every year where the temperature gets warm, the breeze dies down along with my lawn, and the locals begin to yearn for the 358 days of rain we usually get around here. Well you may have noticed, those 7 days are here. So what do you do with yourself to both beat and enjoy the heat? Try this...

The Puyallup Concerts in the Park series is underway, and this Thursday 7/30/09, I would like to invite you all to come out and enjoy some excellent musical entertainment. Pioneer Park (Downtown Puyallup, 324 S. Meridian - right across from the new City Hall building) just unveiled their new outdoor concert stage, and this Thursday evening from 6:30 - 7:15 it will feature:

Michele Leach & Kerry Yanasak - Piano Duo

Michele (my wife, by the way) and Kerry have been performing at the Puyallup Spring Fair for the past several years. Playing on two full size Concert Grand pianos, they'll perform an eclectic mix of pop, classical, ragtime, and easy listening standards - very unique and very enjoyable.

At 7:30 - 8:30, Darren Motamedy - a very well known, super-talented Jazz Saxophonist will perform. And rumor has it that in between the two shows the reigning Miss Washington will do a short piano performance too. (I hope she's really good because she'll be performing after Michele - my reigning Mrs. Universe - and that's a tough act to follow!)

So bring your lawn chairs or blanket, a cool drink and some sunscreen, and come enjoy some Downtown Puyallup culture and some great music. There is a Forza Coffee Bar adjacent to the park that makes some awesome frozen coffee drinks which is where I'll be getting my tall cool one to help beat the heat.

And if you want to try something different for dinner - try Lucky's Dog House Diner at 106 W. Main - a couple blocks from the Park. A full menu of amazing hot dog meals - I heartily recommend the Chicago Style Vienna Beef dog - great stuff! Grab a dog and window shop down Meridian Street's antique row as you head over to the Park.

(Note: There are typically 1,000 - 2,000 people at these things, so come early to grab a shady spot and a parking spot not too far away.)

Free entertainment and a fun night out. Hope to see you all there!

Vienna Beef Chicago Style Dog - photo: glen edelson

Urgent or Important? A timely reminder...

GLENN LEACH (THE LEGACY GROUP) — Thu, 23 Jul 2009 16:06:31 -0500

"Write another blog." The message popped up in my email yesterday, sent by a friend I've never met who lives in Newfoundland. We read each other's blogs here on Active Rain and often try to impress each other with our arcanely witty comments.

"Write another blog." Wow! Had it really been over a month since I've actually written anything to post or send to my client base? That's just not like me. I did take a week off for Disneyland - which was awesome as always - so the week before I left I was too busy to write anything because I was preparing to leave. Then when I got back, I needed to catch up on work, so again I was too busy to write.

And then I got called for Jury Duty, which I could get out of but I believe I should serve if I can, so I served and worked around that, and was too busy to write. And then the floodgates of Purchase Heaven opened up and as I try to take care of my mortgage clients, I'm too busy to write...

And in the midst of all that urgency, "Write another blog" pops up. I hope all my industry friends are enjoying the fruits of this frenzied buying season as buyers scramble to take advantage of the great interest rates, the fire sale prices on homes for sale, and the $8,000 First Time Homebuyer tax credit that expires in a few months.

I am loving being so busy. Each time a buyer selects me to do their financing, it feels so great! Just like the feeling you get during 4^th grade recess when you get selected FIRST for a dodge ball team and you proudly leave the group standing along the wall and go join the captain who picked you. My buyer is the captain - and they picked me first! I love that! That feeling never gets old.

But where did all these buyers come from? Where did I get all this business that I'm having a hard time keeping up with? Did they randomly select me out of the phone book? I doubt it - I'm not even IN the phone book. And that's the message that I heard when I read, "Write another blog".

For the past couple of years, I have tried to write interesting, meaningful, personally-connecting blast emails and blogs on a very regular basis. I've written free reports that I make available to my clients and business partners on things like How To Fix Your Credit and How To Get Your Listings Noticed and How To Find Your Dream Home. I've sent out industry news and personal news. I've tried to entertain, educate, and enlighten. Tried to spread hope and knowledge and new ways of thinking...

And this entertaining, educating, and enlightening has resulted in a booming business. So is it smart of me to suddenly stop writing now because I'm too busy? Ugh!!! My friend who I've never met from Newfoundland (I don't believe that's anywhere near Puyallup) caught me - nailed me - and gave me the best business advice possible: "Write another blog."

Thank you for the timely reminder my bald Canadian friend! And let us all remember to keep doing the important things even when the urgent things get in the way. Now all of you go

- "Write another blog!"

Writing Photo by dbdbrobot

Juggling Photo by jayniebell

What We Learned During Kung Fu Lessons

GLENN LEACH (THE LEGACY GROUP) — Thu, 04 Jun 2009 14:51:08 -0500

I was saddened to hear the news of David Carradine's passing this week. Most remembered for his role in the 1972 - 1975 TV series, "Kung Fu", Carradine's character "Caine" learned lessons of life and martial arts from monks at a Shoalin monastery where he went to live after his parents were killed.

Most memorable to me was the blind monk teacher with the whited-out eyes - Master Poe - who issued the challenge of "When you can take the pebble from my hand, it will be time for you to go". Master Poe put Caine through a series of challenges and situations, helping him "see" goodness and truth and discover wisdom, and getting him ready to face the challenging world that awaited him.

How's your challenging world look to you these days? Are you struggling to make good choices and find direction in a chaotic world around you? Maybe some of Master Poe's lessons can help you too?

1. "If a man dwells on the past, then he robs the present. But if a man ignores the past, he may rob the future. The seeds of our destiny are nurtured by the roots of our past." I often use lessons of history in my writings. But any lessons you find in history must be kept in the context of what was happening at the time and applied today based on the context of our current times.

2. "To not understand a man's purpose does not make him confused." I may present what I think is the perfect loan solution to a client and have it rejected. Does that mean the client is confused? Maybe, maybe not. Have I fully understood the clients purpose and underlying needs and wants? If I haven't, then that is NOT the client's fault - it is mine - and I must seek a better understanding to come up with a better solution.

3. "That which you do not know, the doing will quickly teach you." I've found in this business that experience is definitely the best teacher, and I've made mistakes along the way as I've learned to do new things. But it doesn't take too many mistakes before you quickly figure out what you're doing. People trust me with their largest financial transactions and I owe it to them to find the best solutions and answers without putting them at risk. But if I limit myself to doing only what I'm comfortable with, I will not grow and learn new solutions for future clients. Try new things - just make sure you're committed to doing whatever it takes to carry it through to the end.

4. "To feel shame for no cause is a waste. To fell shame for a cause is also a waste. For you must rather spend time correcting that for which you are ashamed." Mistakes will happen, but you cannot let mistakes paralyze you from continuing to try. Do the best you can, work with integrity and honor, and when mistakes happen - do everything you can to correct them - knowing that mistakes WILL happen and there is no shame in making them now and then.

5. "When I was a boy, I fell into a hole in the ground, and I was broken and I could not climb out. I might have died there. But a stranger came along and saved me. He said it was his obligation. That for help he once received, he must in return help 10 others. Each of whom must help 10 others. So that the good deeds would spread out like the ripples from a pebble in a pond. I was one of his 10. And you are one of mine. And now I pass this obligation on to you." Have you been helped by anyone in your life? Have you repaid that help by helping others? And why stop at 10?

6. "If while building a house, a carpenter strikes a nail and it proves faulty by bending... Does the carpenter lose faith in all nails and stop building the house?" Systems and people will let you down from time to time. Does that mean you quit trusting others and go through life bitter or searching for more perfection in your relationships? Do we focus on the one nail that bends? Or can we learn to focus on the other nails who did their job just like they should have?

7. "If you plant rice, rice will grow. If you plant fear, fear will grow." Go plant something! Plant the right seeds and the right crops will grow - you'll reap only what you sow.

8. "It is essential, always, to keep one's balance." Don't get too full of or down on yourself. Do the best you can, and the best you can do will be good enough.

9. "The purpose of discipline is to live more fully - not less." It's okay to fail and live in a world that allows failure. It is NOT okay to fail because you lacked the discipline and drive necessary to succeed.

10. "The bird sings in the forest. Does it seek to be admired for its song?" Do what's right because it is right - not because you think someone will notice.

Ripple photo by: aussiegall

Kung Fu photo via: Wikipedia

$8,000 FTHB Tax Credit in Washington State...

GLENN LEACH (THE LEGACY GROUP) — Fri, 29 May 2009 20:16:00 -0500

$8,000 FTHB Tax Credit CAN Be Used For Down Payment

HUD just announced today that the $8,000 First Time Homebuyer Tax Credit can now be used for down payment. You'll probably see this all over the news this weekend - and it'll probably be announced incorrectly. So before you get your head filled with incorrect information and make decisions based on false hopes - I want to share with you a few clarifications that I'm seeing in the announcement right now.

Type of Loan: According to today's announcement, you can ONLY use this tax credit this way on an FHA loan. If you're NOT doing an FHA loan - you can't use the tax credit this way.

3.5% Required Down Payment: On FHA loans, the buyer is required to provide at least 3.5% of the purchase price as a down payment. (Watch out for the wrong info you'll be hearing about this part!) The announce states that you STILL need your own 3.5% down payment. You CANNOT use the $8,000 as part of that 3.5% down!

Seriously, that's what it says. You can use the $8,000 for a larger down payment, to pay closing costs, to buy-down your interest rate - but you CANNOT use it until you have your own 3.5% down.

Distribution Mechanism: This part isn't in the announcement, but each State gets to decide how they are going to handle the distribution of the funds at closing. What I understand (and I may be off here a bit) is that the Washington Association of Realtors in conjunction with the Washington State Housing Finance Commission is going to be in charge of handling this.

The $8,000 will be provided as a LOAN by WSHFC using a pool of money from W.A.R. at closing to qualified borrowers. You will sign a loan commitment with WSHFC, and your tax refund will go directly to them to pay off the loan. I'm sure I'll be hearing more about the "how's" and "where-for's" next week sometime.

5 Hour Homebuyer Class: Again, I may be off here, but I also heard that anyone using this credit for down payment will be REQUIRED to take the WSHFC first time homebuyer class. Call me and I'll give you details how to do this.

Other Forms of Down Payment Assistance: Many of my buyers are planning to use some of the other down payment assistance programs for their purchase. For you, the new announcement is really cool - because these other DPA's can be used for your FHA 3.5% down payment requirement - just like they could before. And now, you can add the $8,000 tax credit to that - giving you a bit more buying power.

The good news for those waiting for this to happen is, it looks like it happened finally! And as soon as all the details are ironed out and announced - I'll be happy to help you get through these transactions.

Choosing Business Partners

GLENN LEACH (THE LEGACY GROUP) — Fri, 29 May 2009 11:54:41 -0500

The Right Partnerships Can Mean The World To You!

Harry was a candy maker. He had a little shop off Pacific Avenue in Downtown Tacoma where he offered a wide array of chocolates and taffies and hard-candy sugary sweets. Business was good for Harry and he enjoyed a loyal following and a fine reputation by offering excellent quality products, fair prices, and friendly service.

J.C. was a spice salesman. His job involved calling on restaurants and grocery stores to introduce them to exotic imported spices like cinnamon from Asia, cardamom from the tropics, and nutmeg from India. Business was good and he enjoyed offering his customers new ideas and solutions that they didn't know existed.

The year was 1908 when Harry and J.C. met in church one Sunday morning and almost immediately became friends. Over the next four years Harry continued to run his candy shop and J.C. continued to sell his spices, and both continued to enjoy business success. There was really no reason for either of them to change, but as their friendship deepened, they began to see possibilities in joining forces.

J.C. loved Harry's chocolates and was a frequent visitor to his shop. Harry was impressed with J.C.'s work ethic and his ability to provide his clients with timely service and innovative ideas. It was late 1911 when they began to seriously consider joining forces. The global economy was becoming chaotic and unstable as the world was heading towards a great war, and J.C. was constantly struggling with supply chain interruptions and wild pricing swings when he could get product for his clients.

So in 1912, he approached Harry with a partnership idea. Could Harry create a single, unique candy that J.C. could sell door to door? Like, maybe take one of Harry's most popular little candies and make it bigger to be sold as a stand-alone product? Inspired by the view of a majestic mountain out the window of the candy shop, Harry created the "Mt. Tacoma Bar", a big ugly blob of chocolate and nuts with a white creamy filling, and J.C. took it to the streets.

(In Sales, this is known as a U.S.P. - a Unique Selling Proposition)

As the build-up to America's entry into what would be later called "World War I" started filling Camp Lewis with thousand's of GI's training for oversees missions, J.C. would haul wagon after wagon of Harry's Mt. Tacoma Bars to Camp Lewis where he found an eager audience with a large appetite and disposable cash.

This was the beginning of the (Harry L.) Brown & (J.C.) Haley candy company legacy. Brown & Haley products today are sold in over 50 countries around the world. Most famous now for their pink-tinned (sorry, packed in bags isn't nearly as cool as the round pink tins) Almond Roca candies, my favorite product is still the original "Mountain Bar" - that ugly cream-filled chocolate nut-blob.

The lesson is: Harry made great candy. J.C. was a great salesman. Separately, they were both successful. But together, their partnership opened up the world to them. Just like your business having the right partnerships can mean the world to you too and help you create Your Legacy!

Do you have good partnerships in your business? Do these partners add a new dimension to what you do? Do they allow you to reach business you couldn't reach otherwise?

If your current partners are just "along for the ride" and aren't adding value or expanding your opportunities, are they the best partners for you? Or have you stopped looking for better partners because you think, "Business is good and this is all there is for me".

Harry and J.C. could have felt that way too - and I would have had to live my life without Mountain Bars. And that is not the kind of life I want to live (Okay, a bit dramatic, even for me...)

Chocolate Photo by: Elin B

Almond Roca Photo by: rynosoft

How Did Memorial Day Start? Why Should We Remember?

GLENN LEACH (THE LEGACY GROUP) — Fri, 22 May 2009 11:01:55 -0500

The Legacy of Mary Logan

It was March of 1868, three years after the terrible Civil War that threatened to divide a nation and pitted brother against brother, friend against friend. Mary Logan, wife of Gen. John A. Logan-Commander in Chief of the Grand Army of the Republic, ventured south to see first hand how the nation, especially areas in the battle ravaged South, was healing.

In Petersburg, VA, she stopped off to visit the oldest church in the region-a grand old structure disassembled in England whose bricks had been brought over and reassembled here. As she passed through the court graveyard, she was overcome by the extensive floral decorations and hand-sewn Confederate flags that adorned each and every headstone there.

She determined then and there that every headstone of every soldier who had sacrificed their all in that terrible conflict should be shown the same respect. In her words, "...for they were all heroes, each dying for the cause he thought was right. They gave their all to prove their sincerity, and they all died true Americans whatever their political affiliations may have been."

With the force of her determination, Mary Logan spearheaded the creation of a national "Decoration Day", to be observed every May 30th. Memorial Day, formalized officially by President Lyndon Johnson (About 100 years after Mary Logan's idea. What took so long?), came about because one lady saw something good and decent and set out to share this good and decent thing with the rest of the country. Her determination, her vision, her idea and follow-through - Helped heal our nation!

I know that there are $99 mattresses to buy and financing deals from our ailing car manufacturers too good to pass up this weekend, but between all this superfluous busyness, take a minute this weekend to remember the words of Gen. Logan who helped create this holiday at the urging and prompting of his wife:

"Let us, then, all unite in the solemn feelings of the hour, and tender with our flowers the warmest sympathies of our souls!

Let us revive our patriotism and love of country by this act and strengthen our loyalty by the example of the noble dead around us"

Indeed, let us remember and cherish "the example of the noble dead around us"! Without them, there is no U.S.

How much money do you spend on your listings?

GLENN LEACH (THE LEGACY GROUP) — Wed, 20 May 2009 10:13:49 -0500

I posted a blog yesterday showing off what one agent was doing with an aerial photo to help promote a unique listing, and it sparked a discussion about spending money to promote your listings. Since I'm not a real estate agent, I don't honestly know what is normal and customary.

How Much Do YOU Spend On Each Listing?

Does it depend on the listing itself? Or do you have a fixed budget for each listing? How do you decide - gut feeling? Or stick to some plan you learned? Do you ever ask the seller to pay for your marketing services up front?

Has the slower real estate market caused you to cut back on your marketing efforts? Or just the opposite as you realize that it takes extra effort to help get your home noticed amongst so many competing listings. Or do you just hang a sign and hope?

I'd love to hear answers and get a conversation started on this topic. Hear your successes and failures. Did you do something special for a past listing that really paid off? Did you spend good money promoting a listing only to have the seller turn around and burn you in the end?

What are your feelings on "buying" customer loyalty? Is this a good idea or a foolish one these days? Can successful listing agents buy up the current market because they can afford to promote more heavily than the typical part-timer who's also working working full time at a warehouse job? Or are successful listing agents cutting back too?

Where do you stand on this issue? I am very, very curious - and I'm sure others are too.

Thanks for sharing!

Building Community and Getting Listings Noticed...

GLENN LEACH (THE LEGACY GROUP) — Tue, 19 May 2009 14:46:11 -0500

Check out this gorgeous listing sign. Normal listing signs have agency and agents names and something creative like "For Sale" on them. But notice what this agent did with this one - which he positioned right on the main thoroughfair in town pointing it right up the street to the house on the hill.

I wrote a blog earlier on this particular listing because the home has some historical significance in Puyallup, and the agent is using this blog to help promote his listing too. Using an aerial photo on listing signs and telling the home's unique story through internet advertising and flyers in the home? That's taking some extra steps to attract some buyers, for sure!

I was sitting with this agent at an open house a few weeks back when a lady came in asking about the photo on the sign. Turns out, she does aerial photography and we got to talking about what it would take to put something like this together for a seller (the seller of this home already had this photo hanging up in the living room, and the agent was smart enough to see the potential for it - but he had no idea how to do this for future listings).

So we asked Jane Hartman with Hartman Foto Works (she can be reached at ejkhartman@hotmail.com what it would take. An address and about $300 for a basic package and she hits the skies and gets you what you need. Do you have listings that you could use this technique with? Maybe not your everyday listings, but those distinctive properties that need that little extra touch?

Puyallup Event June 20th: Jane is also putting together a big event at Spark's Stadium on June 20th to benefit the Puyallup Fish Food Bank. Each participant receives a yellow umbrella (reminiscent of our famous Daffodils) and is assigned a spot on the football turf - spelling out "Puyallup" on the field. Jane is flying over to photograph the event and everyone gets 8x10 shots of with-umbrella's up and with-umbrella's down poses, plus other goodies. Cost to participate is $35 and a portion of the proceeds goes towards supporting this wonderful charity.

Deadline to register is soon - call Jane at 253-970-8020 or email her for more info and directions. Meet other agents and community leaders and support a great cause!

Be Careful With What You Are Promising Right Now...

GLENN LEACH (THE LEGACY GROUP) — Thu, 14 May 2009 16:11:34 -0500

The $8,000 IRS Tax Credit has definitely created some extra activity in the marketplace - and we should all be happy about that. I see many announcements that the Tax Credit will soon be available to be used for Down Payment.

Much as I hope this to be true, remember to treat this idea just like you would a transaction closing. If you've had any time in the business, you know the old adage, "It ain't closed until it's closed". And this is no different - the upfront usage of the tax credit won't be available until it's available.

In my State - Washington - it is assumed that this access to funds before closing is all but a done deal, and many of us are telling our clients, "any day now". But will it really happen? What form will it take? Consider these points:

The funds are supposed to be administered by the WSHFC (House Key) State Bond program. Buyers will be required to take the 5 hour FTHB class. Okay, fine. But will they also be required to qualify for a House Key 1st mortgage too? There are income limits on those. There are purchase price limits. The interest rates are higher than prevailing rates. Will borrowers be able to combine the IRS credit with one of the other types of Down Payment Assistance if they qualify for that too? Or will they have to choose one or the other?
Will you be required to use a loan officer who is able to do House Key loans? If your favorite loan officer has not taken the classes and is not currently qualified to offer these House Key loans, do you know one who is? And won't your current LO be thrilled to have you take their clients away from them because of this?
FHA announced this week that they will accept the program - and then it pulled the announcement the next day. Will they come back soon and say they will take the program after all?
If the program does get the official blessing from FHA, HUD, Fannie Mae, Freddie Mac, State Governments - with or without a note from the borrowers' mother - how soon (if ever) will lenders accept the program and set up guidelines? Many banks and lenders in Washington don't participate in House Key now because the loans end up being serviced by Bank of Am and they'd prefer to only do loans for their own portfolios. Mortgage Brokers have been excluded from being able to offer these House Key loans already - so what will this mean to them? Could lawsuits result in this effort to help FTHB's - delaying the whole process until the IRS Tax Credit program expires?

I hate to be gloom-n-doom, but be careful about over-promising right now. The Tax Credit is a great incentive to buy a home. In it's present form, I've seen quite a number of transactions result that wouldn't have happened otherwise. So the program has been a success - and you should continue to promote the benefits - AS-IS - to your clients. If this "next step" does happen - GREAT! But don't set your clients up for disappointment and look uninformed should it not happen.

Hills Street Blues (for those of you under the age of 35 - you can go "Huh?" here and it's okay) always ended their officer briefings with some very wise counsel: "Let's Be Careful Out There!"

Photo by: Pink Sherbet Photography

Amazing Mothers Day Business Lessons

GLENN LEACH (THE LEGACY GROUP) — Fri, 08 May 2009 10:34:28 -0500

"A little more effort on the part of everybody to make the

times better, and better times will surely come along."

- John Wanamaker

The history of Mothers Day contains some amazing business lessons. As you prepare to honor your Mother this year, take a minute to learn about the business practices of the man most responsible for the upcoming holiday tradition. If we ALL began running our own businesses this way, we could change the world - And Make Our Mothers So Proud!

John Wanamaker is considered the father of modern advertising. In 1861, at age 22, he started a men's clothing store with his brother-in-law in Philadelphia. The business grew quickly and they soon opened the world's first "Department Store" and expanded to several cities.

Wanamaker pioneered many forms of Advertising and Promotions (you may have heard of one of his inventions: the annual "White Sale"), and used elaborate Events to draw customers. He installed a mega-huge pipe organ (Shown in Photo here, ready for Christmas) in his department store and would host free musical concerts and shows featuring the top artists of the day - right in his store. (Is this a lesson for how to get your listings noticed?)

What's he have to do with Mothers Day? When Anna Jarvis wanted to start a national holiday to honor Mothers as a tribute to her own mother, it took several years of lobbying and promotion and lots of money to make it happen. Early on, Wanamaker got behind Jarvis' efforts and provided the needed funding. Anna Jarvis is credited with starting the holiday but it simply would not have happened without Wanamaker's generous support.

Could Wanamaker's ideas help you become a better business person, employee, or even mother? Here are some of his famous quotes and ideas. Slow down, read these through carefully. Consider how they can be applied to your own business practices. And use the encouragements and concepts to inspire those around you.

How to treat a customer: (Do you do this with EVERY customer?)

"When a customer enters my store, forget me. He is king."
"Courtesy is the one coin you can never have too much of or be stingy with."

How to advertise: (These are AMAZING!)

"Any seeming deception in a statement is costly, not only in the expense of the advertising but in the detrimental effect produced upon the customer, who believes she has been misled."
"Half the money I spend on advertising is wasted; the trouble is, I don't know which half."
"In writing advertising it must always be kept in mind that the customer often knows more about the goods than the advertising writers because they have had experience in buying them."

Being in business for yourself: (So TRUE!)

"Do the next thing."
"It's easy to work for somebody else; all you have to do is show up."
"It is not extraordinary circumstances or rich friends or large capital that create the golden opportunities of life. It is something in the person that thinks and gets an idea, and seizes the first possible moment to do what he can towards developing it."

How to work your business: (Yes, this stuff really works!)

"Keep up the old standards, and day by day raise them higher."
"One may walk over the highest mountain one step at a time."
"Nothing comes merely by thinking about it."

Maintaining balance: (These are so hard to remember!)

"People who cannot find time for recreation are obliged sooner or later to find time for illness."
"Many persons have an idea that one cannot be in business and lead an upright life, whereas the truth is that no one succeeds in business to any great extent who misleads or misrepresents."

Surviving tough times: (Will you join me in this?)

"A little more effort on the part of everybody to make the times better, and better times will surely come along."

Wishing all mothers a very happy Mothers Day and encouraging all sons and daughters

to do something special this Sunday for, or in tribute of, your mother.

Photo by: My aim is true

Credit Scoring is like a Teeter Totter

GLENN LEACH (THE LEGACY GROUP) — Thu, 07 May 2009 11:54:02 -0500

Back in the days when it was okay and acceptable to have dangerous, limb-breaking, skull-cracking playground equipment on school playgrounds (You know, the kind of toys that were actually fun to play on?), I remember fondly the HUGE Teeter Totters we had next to the Kindergarten Portables at Fern Hill Elementary in Tacoma, WA.

Possibly my perspective is affected by my advancing years and the fact that the memory was placed in my brain using my elementary-school-size brain, but I swear that those 3 side-by-side teeter totters had to be 45-50 feet in length. I mean, if the kid on the other side tried to yell a challenge or taunt at you, he was so far away that you'd see his lips move long before the sound ever reached you. Yup, those were some big teeter totters.

Having one person on each side - gently teetering and tottering back and forth? Nah! (Well, sometimes the "girls" would do it that way. But not us "BOYS!") It might start with one kid on each side, but the fun began when others started piling on. If a big kid had a little kid pinned to the sky, you'd see 2-3 other kids come to the rescue - rushing to add enough weight to the little kid's side to send that big kid up to the sky himself. And if they could do it fast enough, and they lifted their legs up so the end of the board smacked into the ground, they could sometimes make the big kid go flying off the end as the impact vibrated through the fulcrum and slammed full force into his unsuspecting bottom. Oh the fun of that Oh No look in his eyes and the subsequent flat on his back splat!

And then you'd move to the next stage where each side of the teeter totter was rushed by "teams" of boys. Having 10-20 kids on each side (and again, maybe it's possible the memory might have added a few kid's bodies over the years) became a contest of wills and strategy. Pretty soon, you'd have the manly boys standing towards the center of the teeter totter, trying to push each other off to reduce the weight of the opposing side in order to give their own side an advantage.

The winning strategy came down to two ideas: 1) Increase the weight on your side while 2) Reducing the weight on the other side. That's how you won - make your side heavier AND make the other side lighter. All at the same time. Both strategies going at the same time.

And that's how credit scoring works! Over the years, I've helped hundreds and hundred of folks improve their credit scores so they can qualify for a home loan or get a better interest rate. There are many tips and tricks I share with them (You can check out several over at www.CreditToTheWise.com), but ALL the strategies are filtered through the Teeter Totter Test.

If the strategy helps reduce the weight on the "Bad Side" of the credit teeter totter, it is a good strategy. If the strategy helps increase the weight on the "Good Side", it is a good strategy. But what is hardest to communicate to these clients is that they must absolutely work on BOTH sides of the teeter totter at the same time! You cannot just reduce the weight on the bad side and hope the score will go up if you have no weight on the good side. Teeter totters don't work that way and neither does credit scoring.

A potential client with lots of bad credit should start right away building good credit accounts. Don't wait until you have all the bad credit taken care of. Open active good accounts gain momentum and points the longer they have been opened. Waiting to open them until the bad stuff is gone will delay the credit score improvement.

And if you get enough good credit going - just like suddenly adding several kids to one side of a teeter totter - you can create enough momentum to "bump" some of the bad credit off the other side. It may not actually go away, but it will be so outweighed by the good stuff that its impact will be diminished to the point it doesn't really hurt all that bad anymore.

Top 5 Things Buyers Must Do To Get The Best Deal

GLENN LEACH (THE LEGACY GROUP) — Tue, 05 May 2009 10:55:26 -0500

Last week's blast "Top 5 Objections to Buying Today" generated some excellent feedback and responses from my clients. Some comments were very critical of the message, suggesting that it bordered on manipulation and dishonesty (Ouch!). Other comments expressed genuine appreciation for explaining these ideas well and sparking ideas on how to sell things better.

I like those discussions - at least you're reading, huh? And because I'm a licensed school teacher and have led countless group sessions over the years, I've learned that if one person in the group has a concern or question, that probably half the group has the same concern or question (and the other half may be asleep or not paying attention). So I wanted to spend one more week on this topic, flip it around to the other side, and expand the lesson a bit farther.

Last week, I spoke from a "Seller's" perspective: "Here are 5 things that are keeping buyers from buying. What are you going to do about it?" This week, I want to hit the topic from a "Buyer's" perspective: "Here are 5 things you must do to get the best deal possible." And amazingly - THEY ARE THE SAME 5 THINGS!

If these 5 things smack of "trying to take advantage of the other side", I apologize. But the reality of most financial transactions is that the seller is trying to sell for as high a price as possible while the buyer is trying to buy for as low a price as possible. You've got two parties who come in to the transaction from opposite ends of the spectrum. Understanding these 5 things will help the sides come to a mutually beneficial agreement. NOT understanding these 5 things can cause transactions to not-transact at all - even when both sides WOULD benefit if the deal got done.

Yes, in the wrong hands, these ideas can be dangerous. But not talking about them because it suggests that we're not being honest or fair in our dealings is like burying your head in the sand. The "wrong hands" already know this stuff - so you should know them too in order to level the playing field. That said, on to the 5 things:

#1 Objection - Lack of Perceived Value: When shopping for a home (or any other item), it is a bad idea to let the seller know that what they're selling is the best thing you've ever seen AND that they aren't charging enough for it. Why? a) That's probably not going to encourage them to come down any farther on the price or make any other concessions, and b) It'll make them feel bad about selling to you. If you sold an old bicycle to a neighbor for $20 and as she was handing you the money, she said, "These things are collectibles and I should be able to resell it for hundreds more than this," you're suddenly not feeling good about the deal, are you? So don't be mean, but don't let your enthusiasm hurt the deal either.

#2 - Lack of Perceived Urgency: Ever told a sales clerk "just looking" when you really weren't? Then you get the idea. Always suggest that you're interested in buying something, but that you aren't in a big hurry and want to take your time to decide. If the sellers figure out that you have a time constraint that forces you to act right away, they could possibly use it against you.

#3 - Competitor has a Better Deal: You absolutely MUST know what is happening around you in the market. A good real estate agent will help buying clients with this by exhausting all options prior to making an offer. Be absolutely certain your clients understand the current market before they make a purchasing decision.

#4 - Perceived Lack of Funds: When buying a home, you need to walk the fine line between "I can't afford this (seller will be afraid deal will fall apart and may take someone else's offer instead)" and "I can afford way more than this (seller won't feel a need to make any concessions to sweeten the deal)". Your buyer should always be pre-approved by a lender before making an offer, but NEVER show up with a $300,000 approval letter to make a $200,000 offer.

#5 - Personal Issues: Don't approach the seller in a confrontational manner or give them other reasons not to like you. People want to do business with people they like. Be likeable and you're far more likely to come back with an agreeable agreement where both sides win. Avoid hard-ball, in-your-face tactics where nobody wins. You may be able to get a better price accepted - but good luck getting any help solving closing problems later on if the seller feels taken advantage of.

I humbly offer these ideas in my on-going effort to help my real estate agent partners serve their listing and buying clients better and to help my loan clients improve their financial positions. The ultimate goal is to help create more transactions where EVERYBODY wins!

(photo by Seven Null7)

Why Buyers Aren't Buying

GLENN LEACH (THE LEGACY GROUP) — Fri, 24 Apr 2009 13:50:26 -0500

The Top 5 Objections to Buying Today

I feel like giving a sales lesson today. Down-n-Dirty, Nuts-n-Bolts sales training dealing with "Why Buyers Aren't Buying". I used to be a sales trainer for the legendary Sunny Kobe Cook - the Pacific Northwest "Mattress Queen" for many years. My job as trainer was to teach every new salesperson how to move mountains of steel coils and foam padding - and do it better than any other company out there - which we did - by a LOT!

One area I would concentrate on with the new hires was "The Top 5 Objections to Buying Today". Since roughly 90% of our mattress sales were made the very first time the customer came in, it was important that the salespeople understood that if the potential customer left the store to "think about it", the chances were very, very small that they would ever come back to purchase later. ("The Be-Back Bus doesn't have a stop out front!") So we categorized the 5 main reasons customers don't buy today and tried to make sure all 5 of these objections were overcome during that first visit.

If you're trying to sell a home, you can use this list to make sure your potential buyers' objections are being dealt with effectively. (And if you're not selling a home, I'll teach you some of the secrets salespeople use against you every time you try to purchase something.)

#1 Objection - Lack of Perceived Value: Notice the word "perceived". What you are selling could very well be worth what you are asking for it - but are you taking "extra" steps to make sure the potential buyers know that? Are you pointing out ALL the features and benefits of your home? The neighborhood? The community & schools? And using comparable sales and listings to justify the offering price?

#2 - Lack of Perceived Urgency: Is there a reason to buy TODAY? The old tried-n-true "I've got another offer coming in right away" technique is one way, but can you think of others? Can you offer some sales incentives with expiration dates? Give good reasons to act quickly. Create urgency. If they leave to "think about it", you've lost.

#3 - Competitor has a Better Deal: You absolutely MUST know what is happening around you in the market. Do you know how many sellers (and seller's agents) don't bother to check out the other homes for sale around them? Frightening. Go visit them - often. If your price is higher - have you justified the higher price to your potential buyers (see #1)? Don't make them figure it out for themselves.

#4 - Perceived Lack of Funds: Many buyers (and their agents) don't know about the current lending programs, down payment assistance, or even that it's possible for the seller to pay for the closing costs. Using creative financing offers in your listings and mentioning zero down programs or rehab programs if applicable - and then directing them to a lender who DOES know about these things "For more info, contact ___________ with your questions", and you'll create buyers out of people who don't think they can buy yet.

#5 - Personal Issues: They just don't like you, so they don't want to buy from you. Are you easy to do business with? Can they get a hold of you? Are there objectionable objects in the home that would turn people off (Bambi's head over the fireplace? Not a good idea. My wife and I looked at a perfectly nice home when we were searching and didn't buy it because the master bedroom was set up as a "Lava-Lamped, Disco-Balled, Mirrored-Ceiling, Remote-Controlled-Everything Love Shack". Euwww...Gross!).

So, selling a home is as easy as making sure the offering is worth what you're asking, giving strong reasons to act now, presenting the home as being better than the competition, solving the money issues, and giving buyers a feel-good experience. Sunny Kobe Cook paid me a lot of money to teach that to her sales staff - and you got it for free! Go sell something!

(photo by carrinated)