Washington Mortgage loans-straight up mortgage advice and commentary

I know you don't want to hear this but what are you going to do for 2010?

Tue, 08 Dec 2009 16:36:46 -0600

Good afternoon. What a gorgeous day. It's freaking cold out (mid 20's) but the sky is so blue and the sun is so bright! I'll take it any day of the week! I was thinking that 2010 is just around the corner. It's amazing to me how quickly 2009 went! In fact, I know you don't want to hear this but what are you going to do for 2010?

For me, 2009 was a life saver for my business. I remember sitting down with a good friend of mine (she's a financial advisor) and commenting to her that is was a make or break year for both of us. She agreed with me. I think what that caused both of us to do was roll up our sleeves and go to work.

Now, as 2009 ends, I'm thinking about 2010. I had a decent year which was helped by going to work for the best company I've ever worked for. Now, I hope to build on what I learned. Obviously, my production needs to increase and I believe it will. I've managed to build a solid foundation of contacts and have kept true to my plan to build the business. It's always a little stressful because we usually don't know where our next paycheck is going to come from. But I take heart that I've survived so far and look to build as I enter my fourth year.

How about you? How did you do this year? What are your plans for next? I'm curious if you have any nuggets you'd like to share. I believe we're all in this together. If we all take the time to help others, we will all prosper. I wish you well in 2010 as you figure out how you're going to make a difference. Have a fantastic day!

Paul McFadden

"I blog therefore I am!"

Tue, 08 Dec 2009 10:41:03 -0600

Good morning everyone! I hope you're well. I'm sitting inside because it's 15 degrees outside. Yes, I know. It gets colder in other climes. We're just weather wimps up here! I was thinking this morning about why I blog. Thus, the title of the post "I blog therefore I am!".

Rene Descartes, one of the world's greatest philosophers once said "I think therefore I am". "I blog therefore I am" is obviously a take on this. But what does it mean?

Your blog should be a glimpse into what makes you tick. It should be personal. First, a few statistics. It is said that at least 80% of our customers start their search online for real estate related information. I know several of you here who have done quite well by having an online presence. My question to you is are you revealing your personality in your blog? Lenn Harley wrote a great post today about keeping your blog short and to the point. In her blog, Lenn offered up her 2 cents. Lenn, if you're reading this, in no way am I trying to cheapen your worth!

I agree with Lenn. It's great to post a chart about the economy, etc. It shows you're the expert. But what about taking it to the next level and providing commentary in your own words about what it all means? It is said that by the time a customer decides to do business with you, they often have been following you for some time online. So what do you think they're looking for? If you think about it, it's probably a good fit. People want to do business with others they know, like and trust. By blogging about who you are, you are giving them a snapshot into your life so your customer can make a decision.

"I blog therefore I am" is meant to challenge you to reveal yourself to your readership. I realize most of you here already do. Congratulations! You are to be commended. The rest of you should get on it. Again, blogging isn't for everyone (see my blog post titled "To blog or not to blog. That is the question.") but, if you're at all curious, I encourage you to give it a try. Keep it short, sweet, and inject your unique personality. You never know what might happen! Have a great day!

Contact me

Paul McFadden

Look around you. Joy is everywhere!

Tue, 01 Dec 2009 10:14:26 -0600

Hello! I was just shaving and it made me realize that there is joy everywhere; even in the smallest things. What brought this thought on, you ask? It never fails to happen that I start shaving just when my wife is leaving for work. And when she kisses me she gets shaving cream on her lips! I know it's a little thing but it's pretty funny to see the picture!

I don't know about you but I'm not sure I handle the holidays as well as I should. It's a busy time with a to-do list a mile long. I also tend to stress about money; something we don't have a lot of right now. I'm always looking for inspiration and found myself energy depleted, even after the long holiday weekend.

Thus, when I thought about the shaving cream incident, it brought a smile to my face. I now know I can greet the day with a smile and a joyfulness that was missing. Today I plan on looking for joy. I know I have so much to be thankful for. And you? What are you joyful for? Have a great day!

Paul McFadden

The city of Bellevue comes alive this time of year!

Tue, 01 Dec 2009 09:18:51 -0600

Good morning! I hope you're well. I wanted to tell you a little about Bellevue, WA. and how it comes alive this time of year.

Over 30 years ago, one of Bellevue's leading citizens, Kemper Freeman, had a vision to turn Bellevue into one of the major retail centers in the nation. Kemper's idea was to make Bellevue like Michigan Avenue in Chicago. The first step was to reconfigure Bellevue Square. It is now one of the highest grossing malls in the nation. This was followed by the addition to the mall which added restaurants and even more shops. Across the street, Lincoln Square was built and connected to the mall with skybridges. The Westin Hotel and condominiums were built along with a new addition to the Hyatt. Several blocks east, The Bravern development was completed which added office space, condo's, restaurants and retail space included the region's first Neiman Marcus.

This time of year is magical. Snowflake Lane features life-sized drummer boys performing on the half hour and the streets are full of revelers and shoppers. From what used to be a tiny bedroom community, Bellevue has grown into a city of its own replete with world class shops and restaurants. If you haven't had a chance to visit lately, come check it out. It's an easy 15-20 minute drive from Seattle and parking is plentiful. Bring the family and take it all in. There's so much to do.

Thanks for reading about how the city of Bellevue comes alive this time of year! Have a great day!

Paul McFadden

Dubai World's problems show how far reaching this econonomic crisis is!

Mon, 30 Nov 2009 09:20:11 -0600

Hello all: How are you? I was reading last Friday about Dubai World's financial problems. It made me realize how deep this worldwide economic crisis really is. I have to admit I wondered when I heard how fast Dubai was building and growing; especially when it was revealed that it was being built on speculation.

The old adage "if you build it they will come" has its share of detractors, especially if you don't show some restraint. For those of you who are unaware of Dubai World, they are the financial arm for the country of Dubai. As of Friday, they asked for their debt to be forgiven for 6 months. Currently the debt is at $60 billion. The problem is Dubai doesn't have revenue coming in such as its neighbors. There are no oil royalties like Abu Dhabi has. Dubai was counting on tourism dollars. With less people travelling due to the global recession, Dubai's days were numbered.

Dubai World comprises the development arm of Dubai. They also invested heavily in ports around the world (this is a profitable venture) and were involved in the new City Center Complex development in Las Vegas. The good news for us here is our banks had relatively low exposure to Dubai World's problems. Much of the exposure is by British banks which doesn't bode well for our neighbors.

Still, what Dubai World's problems show is how deep and profound this economic crisis really is. Even though it appears real estate is on the mend here, there still are a number of warning signs out there that indicate slow or no growth may continue well into next year. The Seattle Times released on Sunday an updated list of banks who are on the FDIC's watch list up here. There were 24 that were in serious trouble and it appears many household names may not make it through next year.

Originally, I thought this economic crisis would subside sometime this year with recovery underway by 2010. Now, it appears that may have been a tad optimistic. All is not doom and gloom and I know some of you are having good years. In fact, my little company is having a record year. But the numbers don't lie. Over 10% unemployment in most states, 500+ banks on the watch list, and real estate sales projected to increase by 1.9% next year here according to John L. Scott. My fervent wish is we get it this time. It's so easy to forget where we are and where we've been.

What do you think? What are you seeing? I'm seeing business better this year than last and next year being improved. But it's a tenuous recovery in spite of what the government is saying. Dubai World and its problems bring it all home! Have a great day!

Paul McFadden

Giving isn't a sometime thing; it's an all the time thing!

Sun, 29 Nov 2009 19:56:50 -0600

Hello all: I hope you had an awesome weekend! I was inspired to write this post after reading a news release in the Seattle Times about investors profiting from foreclosures this morning. Obviously, this is another way to make a buck and some people are having record years. The interesting thing about this piece was the mention of a man named Jeff Waters of Giving Tree Development of Fort Lauderdale, Florida. The mention of this man and his doings should show all of us that giving isn't a some time thing. It's an all the time thing!

I have never met Jeff but was amazed by his story. His company buys the mortgage notes of distressed homeowners and then lowers the homeowner's payment so they can afford to stay in their home. How cool is that? I'm sure Jeff is not the only one doing this but here is an example of what he refers to himself as a "white knight".

This time of year it's easier for many of us to give. We know we should and are reminded how fortunate we are in many cases. But I think the key is to give as much as we can at every opportunity. I know many of you do here and you are to be commended. Giving can take many forms. Personally, I don't have a lot of money so I try and give my time. I've reached out to those in need and tried to be there for them. I'd like to hear your stories. I don't know about you but I feel I'm being increasingly surrounded by givers. I love this. When everyone is giving to each other, it's a beautiful place. So share and keep on sharing your stories. There are so many precedents that come to mind. The great movie "Pay it Forward" and the wonderful new book "The Go Giver" are two great examples.

Have a great rest of the weekend and an inspiring week this next week! Let's remind ourselves at every opportunity that Giving isn't a sometime thing; it's an all the time thing! Take care.

Paul McFadden

I am thankful every day!

Tue, 24 Nov 2009 09:45:51 -0600

Hello all: Good morning! We're settling into what will most likely be months of grey and rainy weather. That's the way it is up here this time of year. Oh well!

I was thinking with Thanksgiving and the Holidays just around the corner how lucky I am. I am thankful every day! Here's why.

1) I am thankful that I believe in a higher power (in my case Jesus Christ) as he looks after me. Whatever you believe in, it's nice to know that we're taken care of.

2) I am thankful for my family. I am blessed to have a wonderful wife, two great kids, a loving and pretty normal set of in-laws, a great dad, two brothers, their families and my unbelievable new grandson Sam!

3) I am thankful for all my friends. I consider myself the luckiest man on the planet. My friends are cool, understanding, and gifted in so many ways.

4) I am thankful for my health. I can't explain why I rarely get sick and seem to be energized like never before. But I'll take it at this point!

5) I am thankful for my job. I love my job! I work for the coolest company where it's a team effort. No wonder we're having a record year.

6) I am thankful for my clients. The more and more I learn about The Secret the more and more it seems to be applying to my life. I literally am attracting the type of people into my life I love!

7) I am thankful that I have a roof over my head and something to eat every day. So many people in the world don't. My heart goes out to them and it makes me realize how lucky I am.

8) I am thankful that I have learned how to give. I'm not sure I always did this. My new favorite book is The Go Giver. Now I'd like to model this every day with no expectation of receiving anything in return.

So what are you thankful for? Perhaps it's the fact that we're going through such a profound economic challenge these days. Maybe it's something that recently happened to you or someone you know. Or could it be that we're not getting any younger and are looking for something deeper and more meaningful? Whatever it is, I encourage you to chime in. Thanks for reading this. I appreciate it! Have a wonderful Thanksgiving and upcoming Holiday season!

Paul McFadden

How's it going for you this year? Is there a pulse or are you on life support?

Wed, 18 Nov 2009 10:07:10 -0600

Hi there! How are you? I was curious how all of you are doing. How's your year shaping up? I'll start.

I changed companies to The Legacy Group at the beginning of the year. I only knew one person there and not well. He and I just have similar thoughts and beliefs. Little did I know that one little decision would keep me going. 2008 was not great for me. I worked for a small net branch and had virtually no support. I remember sitting down with a good friend of mine (she's a financial advisor) and saying 2009 was a "make or break year". She too had a rough 2008.

The "make or break" part worked. We both rolled up our sleeves and went to work. Now, we're almost done with the year and it's been a good one. I think I still have a pulse and am not on life support! What made the difference? I think we all need to be real whatever our situation is.

If your head's not in the game, figure out how to get back into it. Or get out. For me, I take one day at a time and make sure I get the necessary exercise, rest, food to keep me going. It sounds like a simple formula but, honestly, there are days where I want to pack it all in. Let's face it. Our jobs are tough sometimes. We work hard for nothing; often for days at a time. Occasionally I think about how nice it would be to draw a salary.

Then I remind myself how much I love what I do. I take great comfort that I work for a fabulous company that wants me to succeed. That and the wonderful relationships I've built since being in the business. Today I woke up feeling less than stellar (I have seasonal allergies. Plus, it rained all night-the Pacific Northwest can get kind of gloomy this time of year). What helped? Writing this blog post and connecting with you.

So tell me how you're really doing. Is there a pulse or are you on life support? We are a great support system here. I'm pulling for you and wish you well! Have a great day!

Paul McFadden

I have a Facebook Fan Page! Does it matter?

Mon, 16 Nov 2009 09:20:22 -0600

Good morning! We're in for a wet and windy one today. Batten down the hatches!

I was reading Rich Jacobsen's post about having a Facebook Fan Page among other things and thought I'd comment here. First of all, I do have a Facebook Fan Page. So far, I have 5 fans. If you'd like to be a fan, go to The Legacy Group and add yourself. Thanks if you do.

So how do I feel about Facebook Fan Pages, etc.? To me, the jury is still out. Perhaps I'm just not that technically oriented. Sure, I know people who derive their business from having a killer website, endless Twitter tweets, and a killer blog. And I do think it's important to know about this stuff. Social media is here to stay. With my limited technical skills, I try.

But the greater benefit to me has been the building of great relationships online and, hopefully my reputation. So, I'm curious. What have you seen by having a Facebook Fan Page, etc? Have people found you and done business with you? What do you think has been the net benefit?

Facebook Fan Pages? Again, mine is The Legacy Group. Let me know what yours is. This is an experiment. I want to believe in social media and the power it has. And I will keep trying by blogging, etc. But it's difficult to ignore the tried and true methods of building and working within your database and those great face-to-face interactions.

Thanks for reading this. Again, and since I'm a shameless self-promoter, follow me if you like. And let me know what your Facebook Fan Page is. I'll follow you! Take care.

Paul McFadden

Stimuli. Do they work?

Sat, 14 Nov 2009 10:30:56 -0600

Good morning all: How are you? It's another cold but beautiful morning here in Seattle. Snow has already fallen and people are skiing! Get excited. I was thinking about Stimuli this morning and if they work.

First of all, a definition: Here is the definition of stimulus. Stimuli is the plural version because there are so many at work right now. Stimulus is defined as "an agent, action, or condition that elicits or accelerates a physiological or psychological activity or response".

Why am I writing this? With the never seen before economic downturn and the government's answer to try and stimulate our economy, I wanted you to weigh in. This is by no means meant as a political rant. In fact, I abhor most things political. But I'm also a free market guy who has to wonder.

Let's start with our own personal favorite, the $8000 first-time homebuyer tax credit which was just extended. I was talking with a realtor yesterday and he asked me how many deals I had done because of it. I told him two so far with a third that will probably close next month. What are you seeing? Have you closed a lot of deals because of the homebuyer stimulus? If so, I'd like to hear about it. For me, it really hasn't helped that much.

I have to wonder what would have happened if there weren't so many stimuli in place right now. How will this work in the future? Are we in fact mortgaging it? Is the first-time homebuyer tax credit, health care bill, government bailout of our financial institutions, etc. etc. working? Some of you may argue we need more time to see the results. But if you look at the definition of stimulus above, it makes me wonder. Have we elicited a physiological or psychological response? Again, I'm not so sure!

As you can see, this is a little deeper post than normal. Sorry about that. But the numbers don't lie. Greater and greater deficits and people in our business having challenging years with no quick turnaround. Again, I invite your thoughts. Stimuli. Do they work? Have a great weekend!

Paul McFadden

Tweets, posts, friends, podcasts. When will the madness end?

Wed, 11 Nov 2009 09:46:24 -0600

Good morning all: It occurred to me yesterday that social media is invading our lives, mine included. It's a little bit addicting. All the tweets, posts, friend requests, and podcasts can be overwhelming at times.

So why do I participate? I feel like I have to be aware of a trend. I've recently seen the growth of social media in a short video. Have you? If not, it can probably be Googled. I was at a seminar recently talking with the President of a growing company here in the Seattle area. One of their sweet spots is teaching companies how to use social media internally. His comment to me about social media is it allows us to build relationships quicker than ever before. That made a lot of sense to me. I will say this. I've managed to build my Linkedin contacts to over 500 now and have several hundred friends on Facebook.

It's interesting how people can stalk you through your tweets and posts. I always thought stalking had negative connotations. But online it may actually be a blessing!

So how do you get started if you've never been online before? My first piece of advice is don't rush it. Heck, I'd be the first to admit that I'm not a rocket scientist when it comes to blogging, etc. In fact, it may not be for you. But keep an open mind. Start small if you start at all and keep your efforts to a few things (try Twitter and Facebook, for example).

For those of you in the big time online, I'd like to hear from you. What has that meant to you and your business? Thanks for reading about tweets, posts, friend requests, and podcasts. If there's anything I can help you with, you can contact me here. Have a great day!

Paul McFadden

Giving Back. Do you and how?

Tue, 10 Nov 2009 09:12:11 -0600

I am re-blogging my fellow Rainer Amy's thoughts as I feel this should be driving us all. In the meantime, I suggest you all get a copy of "The Go Giver". It's all about giving! Have a great day!

Via Amy Jones (Chandler, Arizona RE/Max Excalibur):

Whether you call it paying it forward or giving back, it's something that can change your life. So tell me do you? By sharing how you give back to your community or the world, you may just encourage others to do the same. Maybe instead of crying over what we don't have, we can reach out and give what we do have...our time. It doesn't take a lot of money, just a caring heart.

I just compiled my photos from the trip I took to Armenia as part of a Medical Mission team. A trip like this...whether it be around the world or around the corner to a place where people are in need...is life changing. It puts things in perspective and you will find the little things we gripe about really ARE little things in the grand scheme of it all.

So, if you have a chance today...tomorrow...or whenever, reach out. Share your time and compassion with someone who can use a smile, a hug or something as small as a warm blanket. The world will be helped and you will find your life to be better than it's ever been. I promise.

I hope my photos of my mission trip to Armenia touch your heart~

Amy Jones, Realtor, ABR, CNE, EPro, CDPE
Top Producing Realtor in Chandler, Sun Lakes, and the surrounding Phoenix East Valley.
Named one of the "Top 50 Real Estate Agents" by the Phoenix Business Journal

RE/Max Excalibur
4921 S. Alma School Rd
Chandler, Arizona

Visit www.AmySellsAZ.com for more information including free MLS search.
Visit www.PhoenixArizonaRealEstateBlog.com for a comprehensive Phoenix Area Blog.
Visit www.SunLakesBlog.com about living in Sun Lakes, AZ.
Visit www.hosted.cdpe.com/AmyJonesGroup if you're an AZ homeowner facing foreclosure.

Paul McFadden

The growth of Bellevue, WA. It has everything to offer!

Mon, 09 Nov 2009 09:51:52 -0600

Hi all: I'm reminded of the advice to post on the specific area where you live, work, etc. For me, that would be Bellevue, WA.

I've lived in the Puget Sound (Seattle area) region for over 30 years now. In that time, I've watched Bellevue grow from a sleepy bedroom community with an outdoor mall (Bellevue Square) into a full fledged powerhouse replete with skycrapers and national retailers.

Bellevue used to be a city where the lights turned out at 5:30. Yes, people worked downtown but they lived elsewhere and went home to their families. Great restaurants were started and died on the vine 15 years ago.

What started the renaissance from sleepy to vibrant city? I think it started with Bellevue Square and it's expansion. All of a sudden major national retailers wanted to locate to downtown Bellevue. The second expansion of Bellevue Square in the last few years brought restaurants such as Ruth's Chris Steakhouse and P.F. Changs to name a couple.

What spawned after the most recent expansion of Bellevue Square was the building of Lincoln Square across the street which is full of retailers and restaurants as well. Lincoln Square also included a Westin Hotel and condo's for people wanting to live downtown.

So much of Bellevue's success has to be attributed to Kemper Freeman, the developer and owner of much of downtown Bellevue. Mr. Freeman had a vision and, so far, it's paid off. In this area, Bellevue rivals any city in America for it's access to shopping and entertainment.

The transformation of Bellevue within the last few years has been amazing. Now, people work, eat and live downtown. Major corporations such as Microsoft and Expedia have moved part of their employees to downtown Bellevue. Nieman Marcus just opened this Fall and there are a myriad of fine dining choices and Happy Hours to choose from.

The future of Bellevue looks bright. If you haven't visited recently, come see what's up. Thanks for reading! Have a great day!

Paul McFadden

To blog or not to blog. That is the question!

Thu, 05 Nov 2009 16:47:34 -0600

Hi all: Good afternoon! I was thinking about blogging this morning. This was after attending a seminar last night on SEO related stuff. The so-called expert recommended that we not write articles that are displayed on other people's websites ( In this case the site was a local one, Biznik, but it could just as easily apply to Active Rain). His point was that we have no control and its much easier to set up our own blog on Wordpress, etc.. I've heard this argument before.

I love being here on Active Rain. To me, it's about more than blogging; it's about building long-term relationships and learning. That being said, I also love to write. I would imagine most of the prolific bloggers here do as well.

So should a person blog or not? I don't think it's for everyone. Personally, if you don't enjoy writing or can't string two sentences together, it might not be worth it. The information you're putting out there in cyberspace needs to be concise and well written in my opinion. If you're going to blog, take the time to not only spellcheck (there's one here) but make sure it's grammatically correct. I know this sounds pretentious but, again, I think it's important that what you put out there reflects your knowledge. Part of that is being aware of correct sentence structure and spelling. Mind you this can be learned.

Again, I think it's important that we embrace new ideas and technology. I've read so many success stories here about Rainers' blogs working. I encourage you to give it a try if you haven't already. After all, you never know who might be reading! Have a fantastic day!

Paul McFadden

The New RESPA. What does it mean for us?

Thu, 05 Nov 2009 08:41:37 -0600

Good morning all! Yesterday I sat through an afternoon session on the new RESPA which will be implemented on January 2, 2010. Not my idea of a fun afternoon!

Here are my thoughts. One, I've noticed a lot of people seem to overreact about the changes in our industry. Case in point: The HVCC laws that were implemented May 1 of this year. Yes, we could no longer choose our favorite appraiser and values are occasionally coming in lower. But I've also seen a majority of reports come in fine and actually much quicker than before.

So what about the new RESPA changes to the Good Faith Estimate? The GFE will now be three pages long and there are a number of tolerance levels that are allowed. The big one that has zero tolerance is the interest rate cannot change from the Good Faith Estimate unless a new GFE is provided (re-disclosed). My company already does this anyway. The other big thing I noticed is that YSP must not only be disclosed (this has been enforced by wholesale lenders for a while now) but the borrower is paid this and then needs to pay the loan officer.

I'm sure there will be complaints about these new guidelines. Personally, I started in the mortgage business 3 1/2 years ago and have seen it all. I know we'll weather this storm as well. For those mortgage brokers out there who rely on YSP and hiding their pay, changing terms, etc., the gig is up. My boss commented that this may mean the end of the broker. I'm not so sure but will say this. As with anything it pays to be upfront. Disclose to your clients how you do business and how you get paid and there shouldn't be a problem. Ultimately, we're in the trust business. Our clients believe what we say. Shame on those who abuse the privilege. Thanks for reading! For more information on the new RESPA changes you are welcome to contact me. Have a wonderful day!

Paul McFadden

How well do you work from home?

Thu, 29 Oct 2009 09:09:50 -0500

Good morning all! I hope you're well. I decided to work from home today. I've been fortunate since the first of the year because I have such tremendous support from my company. In fact, I haven't worked from home this much in years.

Granted, my drive to Bellevue is 30 miles one way. This can take a minimum of 45 minutes and is often tiring. I also have the luxury of being all by myself most of the time. My wife works and the kids are grown and gone. How does working from home work for you?

I think the key is to minimize distractions. I could see how it might be difficult if you still have kids at home, for example. I also try and break up my day and get out of the house. Today I'll probably work out this morning and then come back and make phone calls, send emails, etc. This evening I'm meeting a couple buddies for a beer in Renton.

How often do you work from home? I keep hearing about the dawn of the virtual office. Personally, I like to have my cake and eat it too! Most of the time I head into out corporate office (probably 4 out of the 5 days a week I work). I find the camaraderie and support to be helpful.

But there are days where I just don't feel like being around the noise and chaos no matter how positive it might be. That's when I opt to work from home. So tell me your story. How productive are you working from home? I think if a person is disciplined enough it can work great. Have a fantastic day!

Paul McFadden

Buying at auction-is it for you?

Wed, 21 Oct 2009 10:40:19 -0500

Hi again: Last night I attended The Vestus Group's presentation on buying real estate at auction or on the courthouse steps. These guys have it together. If you're local, you can attend their free presentation every Tuesday night at 5:30 at the Windermere Real Estate offices at Yarrow Point.

Again, I'm very impressed with how organized this group is. They've been in business since 2002 and have managed to buy and sell thousands of properties for their clients in this span. The key is they do their homework. Last night there were probably thirty people there hearing the story. Most were investors although there were also realtors and builders in the audience. I had two people who came and are interested.

So how does buying at auction work? Whether you do it yourself or hire a firm such as The Vestus Group (you pay them 3% in addition to the other real estate charges), it's important to be prepared and learn if it's right for you.

Some statistics were thrown out last night. Every week over 1,200 homes in the tri-county (King, Snohomish, Pierce) region are slated for auction. Of these 1,200 about 30% are actually auctioned off. The rest are saved by loan modifications, catching up on payments, bankruptcy, or selling the property. Buying at auction can be done often for 65-70 cents on the dollar. This is usually better than buying a short-sale (typically closer to 75 cents) or bank-owned (usually 85 cents) home.

What's the catch with buying at auction? You need to pay cash. Vestus Group has a great program where you can borrow the money short term (if need be) and then refinance into a longer term mortgage down the road. As with anything, there are risks involved. All the more reason to have professionals help you out. Sure, the costs may be higher but will you really care if you get that screaming deal that you can either rent and cash flow positively or flip for a big profit?

I'm planning on heading back to The Vestus Group's Thursday presentation. And I'm bringing a couple realtors with me. I think buying at auction is a tremendous opportunity right now and I want to spread the word! Again, thanks for reading.

Paul McFadden

Southeast King County Market Report

Wed, 21 Oct 2009 10:19:07 -0500

Good morning! Today is cloudy, cool, and rainy; typical Pacific Northwest Fall weather. Have you carved your pumpkin yet?

I wanted to give you an update on Southeast King County and what I'm seeing. This is where I live. I actually work in Bellevue but have noticed some encouraging trends in the cities of Maple Valley, Kent, and Auburn.

I've started to see builders finishing their developments. For over a year, there were just vacant lots. Now, I'm seeing houses being finished which is a very good sign. With prices dropping by as much as $100,000 even on affordable homes (think $250,000-300,000 price range now) and the first-time homebuyer tax credit still in play, I'm hearing reports of increased closings.

All this needs to be tempered with the fact that banks are in serious trouble up here (there are several on the FDIC's watch list who can't lend money right now) and there are still over 1,000 homes scheduled for auction every week.

Are we out of the woods yet here in Southeast King County and other parts of Puget Sound. I think its too early to tell but, again, I'm encouraged by the return to commerce of the builders. I'll keep you posted! Have a great day!

Paul McFadden

Staying motivated-how do you do it?

Wed, 21 Oct 2009 10:06:13 -0500

Good morning! I hope you're well. I was just thinking about motivation as there are some days where I just don't have it.

The job we do is often difficult and, if you're like me, I often wonder when the next deal is going to come through so I can pay the rent, etc. this month. One thing that helped me this morning was I reminded myself of all the things (loans in the pipeline, marketing campaign to be mailed, email newsletter to write, etc. etc.) that I'm currently working on. That combined with working for the best company I've ever worked for helps me break out of any funk I thought I was in.

So how are you doing? What are you doing to stay motivated on a daily basis? One of my new favorite authors is a guy named Bob Berg. He co-authored "The Go-Giver" which I loved. This morning I was reading one of his blog posts on Twitter-it was inspiring.

It also helps me to blog here. I love Active Rain for numerous reasons and it gets my head back in the game. Any feeling of not being motivated can be temporary. I think I'll write another blog post! Have a wonderful day!

Paul McFadden

It really IS all about the database . . .

Tue, 20 Oct 2009 08:02:41 -0500

This is a great post that really gets back to the heart of how we all can build a successful business. At least it's working for me! Have a great day!

Via Barry Owen (Keller Williams Realty):

We've just brought in a few new associates who have Super-Star potential.

I honestly believe that EVERY person has Super Star potential in whatever they do . . .

as long as they understand that business is not a solo adventure.

You gotta build a strong TEAM (Together Everyone Achieves More) to get to the top.

In this economic environment, your ability to build a strong TEAM while likely define your ability to survive.

Building a team begins with building a database.

Each new agent I coach is sticking a toe in the water with a measure of trepidation aware of all of the unknowns. Sure, there's a daunting mountain of stuff to learn when beginning a career in Real Estate (or any other business).

There's all the "mechanical" processes . . . Learning how to work with clients, the paperwork, the rules and laws, the local customs, the language . . . and the million (or so) nuances that go with all of that.

Just when you think you've got it licked, something else pops you in the head . . .

My advice to these folks is to allow some messiness . . . Live dangerously . . . Step into the unknown with reckless abandon by focusing 100% FIRST on building a strong database and quit worrying about the details.

Until there are leads, there will be no income . . .

The worst thing that could happen is that you could slip up and catch a client not knowing what to do with them.

AAACK!

So the first lesson in building a team is to find some people who "have your back" . . . Develop relationships with 4 or 5 people who are already doing what you want to do and doing it well and gain their permission to lean on them for advice and support when you catch a client.

This can be accomplished in a single pass through your office introducing yourself to everyone you see . . . and attending meetings and training sessions making a point of meeting EVERYONE with whom you cross paths. 4 or 5 people will connect with you, and you'll be on your way.

The Database . . .

If you don't have one, what do you use for email?

Odds are good there is no need for you to spend money on a fancy Contact Management software. the purpose of Building a database is to capture the contact information of EVERYONE you know and put it in a form that will be useful for "leveraging" communicating with all those people in a systematic way.

So . . .

Whatever the platform, just be sure that it is searchable so you can find someones info when you need it.

Be certain that it has the ability for you to organize people into "categories" or "Groups" so you can mass communicate specific targeted messages when you wish.

It's best if it is "infinitely accessible" . . . Meaning On-Line so you can get it from any computer on the planet.

I LOVE Gmail as a good start.

SO many people are using gmail as an email provider and haven't the foggiest notion that it has (FREE) a great little Database Manager built in. Just click the "Contacts" link on the left column and begin playing in there.

Add everyone you know . . . one at a time . . . and make contact with each one as you add them. With each contact, let them know that you are creating your database and would like to up-date their information . . . and let them know that you are in the business of helping folks Buy and/or sell homes :-)

Gmail lets you "cheat" because if you have communicated with them previously, you can add them to your contacts with just a few clicks.

You can create groups.

You can mass email messages.

Use the calendar to track your appointments . . .

and use "Tasks" on your calendar to schedule follow-up calls.

Some of us are "more evolved technologically" than others and may scoff at this blog post because their "Crackberries" are already linked to their high powered database management systems . . . But there's a lesson here for YOU, too!

Doesn't matter who you are, the real point is that if you want to be all that you can be in ANY business, it all begins with your database . . . PERIOD!

IQ or talent are not relevant . . . It's who you know and who knows you and how effectively you are able to communicate with them (ie the strength and utility of your database) that separates the wheat from the chafe.

I'm just sayin'

Best,

b

-
Barry Owen
Principal Real Estate Broker
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215 - Green Hills

Call me: 615-568-2123
Text me: http://www.mycricket.com/sendtextmessage/ 6155682123
email me: barryowen@kw.com
Visit The Owen Group http://www.theowengroup.net
http://www.owengroupnashvillehomes.com
Barry Owen's Internet Portal to all blogsites, websites, and social networks
http://tnrealestatetribalhub.wordpress.com/2009/06/02/barry-owens-web-portal/

Simply & BOLDLY Living the FourFold Way in Open Space!

Quintessentially connected to the real estate industry to offer the ultimate experience for Home Buyers and Sellers in Middle Tennessee . . . Inquire within!

Paul McFadden

How real are you? Transparency is everything!

Fri, 16 Oct 2009 09:28:28 -0500

Good morning all: Up here in the great Northwest, it's Fall. Today is cloudy and cool and we've had quite a bit of rain this week.

I've been meaning to write this blog for some time because I think its important. The question is how tranparent are you? The reason this came to mind is I recently had to tell a client exactly how I got paid. Granted, I've always done this but, still, most clients don't understand or pay attention.

In my case, I was working on a huge loan and had tried to submit to an East Coast bank (big mistake) who didn't understand my client's income as much of it was in the form of bonuses. After that loan submission failed, we were scrambling as we had to pick a new lender with a higher rate and not much time to close. Needless to say, everyone was a little stressed.

I had to call my client and explain how not only was the rate higher but also how I got paid. In the first deal with the East Coast bank, I was being paid yield spread premium and wasn't charging my client any origination fee. When I submitted the loan to the second local bank, not only was the rate higher but I had to pay .25 and charge an origination fee. In the meantime, my client had gone to Lending Tree and gotten a quote for a no fee mortgage. I requested the Good Faith Estimate and saw that the competing lender had unnecessary junk fees in the loan and a slightly higher rate.

When I called my client, I levelled with him about how I got paid. I'm not sure how happy he was about the change but hope he appreciated my candor and transparency. The bottom line is we got a loan approval yesterday and it appears we will close on time. My client will be happy as they're realizing buying their dream house. I also learned something about going with the lowest rate projected. Most of the time, the lender either won't approve the loan or they can't honor that rate. How transparent is that?

In the three and a half years I've been in this business, I've seen so much. One of the things I didn't like was working with people who were in it just for the money. They weren't transparent at all in my opinion. So that should be everyone's goal; To tell it like it is. We all have our warts. But one way to build a great business is to be as upfront and honest as we can. If not, I'm not sure we belong! Thanks for reading. I invite you to share your stories about how transparent you are in your business. Have a great day!

Paul McFadden

Injecting personality into your blog and elsewhere-do you do it?

Wed, 14 Oct 2009 09:02:41 -0500

Good morning: I keep reading about injecting your unique personality into your blog and elsewhere. The question is, do you do it? There are some wonderful writers here and, frankly, I love the writers who write something different and thought provoking. Yes, I know. We're supposed to be updating people on what's going on in our world. And I usually come here to get the latest information on our world. In fact, that's the reason I came to Active Rain in the first place! But, again, I like to get to know the person as well. What better way than by telling us something personal about yourself. I'll start.

I'm 50 (turned in March), married for 17 years (we met on a blind date), a brand new Grandpa (our grandson Samuel just turned one month old), and work for the coolest company around (The Legacy Group is either the largest or second largest privately held lender in the state of Washington) and feel blessed to have wonderful family and friends in my life.

I started over in the mortgage business 3 1/2 years ago and obviously have seen everything known to man in that timeframe! My business is just starting to gain traction and I'm thankful for all the referrals I increasingly get. In building my business, most other things that I enjoy have taken a back seat. I'm hopeful that will ease up a bit in the next couple years because I miss travelling and the other things I like to do.

I'd like to think I have a myriad of interests. Those include wine, good and different types of food, staying fit, and reading all types of literature. My personality has been tested and I'm a phlegamatic person so not so driven to conquer the world. In fact, I sometimes put off today what can be done tomorrow!

O.k. I got the ball rolling. If you're comfortable with sharing, let me know about you. We all have our own unique and interesting story to tell. Thanks for reading! Remember to always inject your unique personality in whatever you do. This will answer the question "How are you different?" Thanks for reading!

Paul McFadden

I Need Your Help. Your Reward? Great Blogs With Great Info. REBlogworld/Blogworld Expo In Las Vegas!

Mon, 28 Sep 2009 15:13:30 -0500

I'm happy to help one of my fellow Rainers in this blog competition. Matt: I wish you well!

Via Matt Stigliano (RE/MAX Access):

photo courtesy of nodomain1

I love blogging.

You may have noticed before, but it's a fact, I love to blog about real estate. It's good for my business, but I actually find it enjoyable too. In that vein, I would like to make it to this year's Blogworld and New Media Expo (including REBlogworld). Of course, these things cost money and there are expenses...blah blah blah. However, Alltop is sponsoring a contest to allow 3 lucky winners to attend this year's event.

I entered, but I need your help. First of all, I misread a rule, which has seriously put me behind the curve. I thought I was doing okay, but realized that the rule was rather specific and I needed to get moving - so I turn to you, the ActiveRain community for help.

The grand prize for the contest is entrance to the conference as well as hotel accommodations. With those two paid for, I can deal with the flights and food for the three days. I need to win this. Imagine how many blogs I'll churn out when I get back with all the new info I've acquired. Think of me as your Blogworld corespondent. I will report back to you - all you have to do is get me to the top! I don't know what it will take to get me there (I don't even know who's in the lead), but with the power of the ActiveRain and Twitter community, I'm willing to bet (Las Vegas - get it?) that I can win this!

Imagine how this will benefit the ActiveRain community as well! Having the power of 160K+ members pushing to help me accomplish this goal will certainly make people think that ActiveRain is the place to be.

Here's what I need:

First, reblog this post if you can. By spreading the word, there will be more opportunity for more people to act upon it. Put it in every category you can think of and make sure everyone of ActiveRain's members see it! I could care less about the points gained from the reblogs, so ActiveRain can pull the points - this is about getting me to Blogworld and REBlogworld.

Second, you need to retweet the information necessary in order for me to be counted. Visit MyAlltop page and at the bottom you will see a "retweet" button:

Click the retweet button. Click it whenever you have a few free seconds. Tell your friends to click it. Please don't sit there and click it 100 times in a row. I don't want to get the boot for "stuffing the ballot box." The contest ends at 8:00 am Pacific Time on October 1, 2009, so I need your clicks up until then. Let's get as many as we can and show everyone the power of ActiveRain, get me to Vegas, and let me bring back and share all that I have learned!

Please use the retweet button and have everyone you know retweet it too! This would be huge for me and I appreciate all the help I can get!
All content ©2008-2009 by Matt Stigliano, Realtor® unless otherwise noted.

Matt Stigliano, Realtor®

RE/MAX Access

(210) 646-HOME

www.RErockstar.com

"Your all access pass to San Antonio real estate."

Connect with me on Twitter and Facebook.

Paul McFadden

Observe your pet to understand relationships and friendships!

Thu, 24 Sep 2009 16:09:39 -0500

Good afternoon everyone! I hope you're well. I write this with a heavy heart as our Great Dane, Buster, has a very weak heart and we may need to put him down. He is almost 8 years old but has really struggled recently and we don't want to see him suffer. Buster was the first dog I owned as an adult and has been a wonderful companion. He will be sorely missed if he passes.

What is the point of all this? If you're like me, we sometimes take relationships and friendships for granted. Contrast that with our dog who loved unconditionally, was always agreeable for the most part, and was happy just being in our company.

After I finish writing this, I'm going to reach out and touch people I know. Let's face it. We're really not on this earth that long yet we all desire to have an impact. I challenge you to reach out to someone. If you have a pet, observe how they do it. I know. It's just a dog or cat. But sometimes we can learn so much from our pets. Have a great day today. Tomorrow is a new day!

Paul McFadden

Private money-when does it make sense?

Wed, 23 Sep 2009 11:32:39 -0500

Hello all: Good morning on an absolutely beautiful day! I was reading a blog about private money today and wanted to chime in. I have to admit when I used to think about private money, all I saw was how much it cost. True, private money can cost almost twice as much or more than conventional money. At The Legacy Group we charge 12% with 2 points usually. This is actually less than what a lot of other lenders charge (sometimes as much as 15% or higher with several points).

The benefit to private money is you may be able to close a deal quickly. Case in point: One of my co-workers bought a house for $350,000 in a highly sought after neighborhood. The appraisal came in at over $500,000. Our capital arm can get the short term financing and then the buyer can refinance into a lower rate. For either an owner-occupant or a flipper, this is a great deal. Another instance allowed one of our clients to buy a business with the equity he had in his house. The bank he was working with said no and he was in danger of losing the deal. The Legacy Group provided short term money which our client proceeded to refinance into a longer term note.

At The Legacy Group we encourage people to contact us if they have a short term need or sense an opportunity. You can also invest in our company and earn a 12% annualized rate of return. Contact Brent Ely at Brent.Ely@Legacyg.com if you're interested. I hope this clears up any confusion about private money. It can be an alternative solution. Have a great day!

Paul McFadden