The Real Estate Sage at The Real Estate Investment Institute - REII

Forgotten Real Estate The Right Of First Refusal

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 10 Dec 2009 09:33:41 -0600

Forgotten Real Estate The Right Of First Refusal is a consumer's tool you may never have heard of.

The right of first refusal, is a type of option agreement, unlike a normal option, the purchased right to purchase, where the seller is obligate to sell for a fixed price if and when the option is excised. The right of first refusal, neither obligates the seller to sell or sets a price if the seller agrees to sell! The right of first refusal, oblates the seller to offer the holder of the right, the opportunity to buy the property for and on what ever terms the seller is willing to accept from another willing buyer.

Why would someone want a right of first refusal? Simple! They might want the property, if the seller wants to sell at a reasonable price. The most common uses are:

Tenants may negotiate a right of first refusal into a lease so that if the seller should decided to sell they have the first chance to buy and retain the property.

You want a property for what ever reason, if the seller decides to sell.

You've rented a house for years, it's your home!

Your lease creates the value, such as an anchor tenet in a commercial project.

The property would add value to your existing property.

You can't afford to buy the property today, but want it if the seller decides to sell it.

The seller doesn't want to sell today.

There are as many reasons to purchase the right of first refusal as there are to purchase real estate.

Like any other option there must be a consideration! The potential seller must receive something of value!

The most common non-cash consideration is a tenant, where the right of first refusal is included in a lease to induce tenancy.

I've used the right of first refusal to protect my clients when buying part of a sellers property, as in buying a farm where the seller retains the homestead, this gives the buyer the potential to reunite the property. In which case the original sale is the consideration.

I've used the right of first refusal to induce private lenders io invest in a property. Where the loan is the consideration.

I've used the right of first refusal to induce investors into a minority position.

I've used it to sooth family members when one heir inherits a family home. Here the settlement is the consideration.

Why would a property owner sell a right of first refusal on his property? Because they want the money! Because it cost them nothing, if they find a ready willing and able buyer, someone is going to buy.

What should be included in a right of first refusal?

You need to state the consideration and acknowledge it's recite.

You need to define the time allowed for the holder to exercise the option.

I've only once represented a seller offering the right of first refusal to the buyer, but I did once suggest offering one to a tenant for an extra $10,000.00 up-front.

From the buyer's point of view:

The right of first refusal must be recordable! Although, since I want signatures when I'm presenting the offer and rarely have a notary and witness available I included a paragraph allowing for me to record a memorandum.

The right of first refusal must not be waived simply because it was not exercised on any given offer. If the proposed sale does not close your right continues.

(My REALTOR® friends are not going to like this one, but I'll make it up keep reading.)

Included that your right to purchase be based on the net proceeds from any offer, not including any concession, considerations, or brokerage fees! This will require the seller to exempt the holder on any future listing agreements, and accept any offers contingent on the right of first refusal not being exercised.

When you're acting as a REALTOR® I've included my commission, to be paid at closing if the option is exercised. (Am I forgiven?)

There is only two determents to a seller granting a right of first refusal.

It will ad what ever time allowed for (normally 10 to 30 days) to the time necessary to close. The time to exercise the option starts when the fully executed offer is presented to the option holder.

Some buyers are going to be put off by the extra time necessary to know if they've got a deal, but in this day of short sales taking months for approval the option period should pose little determent.

There is one big incentive, buyers knowing that a low offer will stimulate the option holder should make their highest and best offer.

Forgotten Real Estate. The Right Of First Refusal

is rarely seen today, it may be forgotten professionalism by residential REALTORS® that's a shame. Every one renting a single family house should ask for it.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

An Educated Competitor Is An Asset

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 09 Dec 2009 13:52:41 -0600

An Educated Competitor Is An Asset! A resource and a friend. Teach a competitor and he becomes a friend and a personal disciple!

I left banking to go in to real estate 34 years ago, one of the things that surprised me most was the anti competition mentality. Lenders at the time co-operated. I started with the most progressive and at the time largest company in the state, the only one at the time with an accredited full time school. Dedicated to excellences through education, they were no less paranoid about any contact, any wisdom being shared with outsiders!

We're not talking about corporate secretes, no we're talking about basic real estate! They regularly brought the best in the Nation to teach us basic real estate. We're not talking about pre-licensing, their people passed the exam on the first try by themselves or they could work elsewhere. I myself got 66 hours notice one Friday that I was taking the real estate exam at 8:00AM the next Monday. I was given my ticket to take the exam, and two books, the red book, RE Law and the Green Book, Seminole on RE, I had to study them while flying Brenda and Eric to a wedding and a family camp out, so with Eric sleeping between sleeping bags and formal close in the back, I studied while Brenda watched for other airplanes.

For the next two years the broker did his best to keep us away from other real estate people. God forbid any one should find out their secret, start with good people an educate them. We had three big problems! There had been some attacks on salesmen showing vacant homes, fall-out when buyers were turned down by banks, and competition paying for civil-rights testers to testus almost weekly! I suggested we pull credit reports before showing any property! Credit reports and a copy of the clients drivers license/s in a locked file at the office stopped muggins, pre-quailing with a credit report cut down turn-downs and testers now had to send real couples, in fact one of our people even sold a test couple a home they didn't know they wanted.

The company agreed to put-in a credit report teletype machine if I would teach interpreting them and pre-qualifying, my introduction to teaching, sharing for it's own sake.

We still had a problemmany of our listings were being sold by other offices and keap falling out. I was on the Board's Education Committee, I suggested they teach credit-reports and pre-quailing. Open month insert foot (I'm good at it!) Suddenly I was head of a new subcommittee for seminars! Little did I know this would amount to nearly two a month over the next ten years! What I learned was that when someone who'd had the class presented an offer on one of our listings they were much more likely to close! An Educated Competitor Is An Asset! When I'd taught the class there was no argument they'd show me what I wanted to see, to our benfit and that of our clients!

At about the same time as I taught the first class for the company I joined the CCIM marketing group, low and behold as soon as they saw you were serious they'd teach you! The very best educated REALTORS® were freely on call as long as you were a serious student. Six months later I joined the Farm and Land Institute, the very best people I've ever been privileged to associate with! FLI was a constant education, they had less formal classes, but they included education in every session, every hour of their 3 day and 2 night meetings each month! They excepted, not demanded reciprocity, I taught credit, finance and the HP-38c /12c for both groups.

Why teach a competitor? You teach for three reasons:

One, you teach because working with an educated competitor is more successful!

Two, you teach because the public, our consumers paint us all with the same broad brush!

Three, you teach because there is no better way to hone, sharpen your own skills!

This was inspired by Jason Couch's blog: Do you really think of every other agent in your area as a competitor? Overcoming a scarcity mentalitywhich was in turn inspired by one of Jeremy Blanton's posts.

It amazes the number of REALTORS® and Mortgage Originators that think so little of themselves that they think they have competition! We have only one product our personal service! You rarely have a truly exclusive listing or loan program. Your own service is the only thing that no one else can offer, pimps and their staff excluded. Unfortunately, all to often Real Estate People see their peers as competitors. These same people think they sell real estate or mortgage money. They're wrong! Real Estate people sell advice, wisdom, consoling and comfort to clients in stressful situations. Real Estate people sell their services! No one else can sell you! You have no competitors!

Once you accept the simple truth, you have no competitors, then networking aiding and being aided by your peers is the best way to build your skills and since most work in a relatively small geographic area those same peers can become a major source of referrals.

I promote and participate on Active Rain because we're all bettered, nay blessed, by our social intercourse!

I sell my services, what I've been taught by the great people I've been privileged to associate with. My services are relevant and up to date thanks to friends known and as yet unknown sharing, participating, learning and teaching on and in Active Rain. An Educated Competitor Is An Asset! A resource and a friend. Call me: 832-259-7078, I'm booking for 2010.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Let's Get To The Truth About HAFA- The New Short Sales Guidelines- Rumors VS Facts

William J Archambault Jr (The Real Estate Investment Institute ) — Fri, 04 Dec 2009 10:40:20 -0600

Once again the gullible, the naive, the PC's, and the entitlement groups are being mislead and deliberately miss leading others and themselves!

This is the best article yet on the "new short sale" guidelines that may apply to some.

Thank you Katrina!

Bill

Via Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.):

Let's Get To The Truth About HAFA- The New Short Sale Guidelines

Active Rain and the internet has seen a surge in posts and articles written by agents and the media regarding the new HAFA program; the streamlining short sales program rolled out by the U.S. Treasury Department.

Many of these posts were featured. Many of them rang strong with hope for a faster closing time. I will be writing a set of articles along with this one that will go over all of the points in the 43 pages of guidelines and forms. There is just too much to put in one post.

Whenever I see a group of people complaining and wanting something to be changed I want to take a step back to see the big picture.
One sentence comes to mind often, " Be careful what you ask for."

NAR, Realtors® and homeowners around the country shouted, petitioned, discussed, wrote and spoke to their representatives about how long short sales take and how the banks don't seem willing to do them and that they don't know what they are doing.

My first question is:

Who says that a professional small business in Real Estate was going to be a walk in the park? And what makes a business where there is no ceiling, low entry level and can create success beyond one's wildest dreams also expected to be easy. Real estate is one of the highest stress careers but you can have a big pay day.

My second question is:

How many agents that wrote these posts of the blissful future of short sales actually read all 43 pages of the guidelines and forms?

I was tempted to write about HAFA but decided that I better understand HAFA and form an opinion based on facts- the facts that are written in these guidelines. So I spent 8 hours yesterday studying these guidelines and speaking with attorneys about them to get their opinions.

On the NAR website under the HAFA section it states:

"HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of forecloxure."

Do you see the oxymoron? How do you place the words, COMPLEX and SIMPLIFY in the same sentence?

The first rumor that I want to dispell is that all the short sales are now going to go smoothly. That is NOT the case.

These guidelines are complicated to say the least, there are a lot of ifs, ands and buts going on here.

The second rumor that I want to dispell is that all short sale lenders will have to answer your request for a short sale within 10 days.

This is NOT the case ALL the time and in ALL situations.

These guidelines are NOT for Fannie and Freddie owned loans. Fannie Mae and Freddie Mac will be coming out with their own set of guidelines in the coming weeks.
The guidelines only pertain to servicers who are in the HAMP program now or those who enroll in the HAMP program.
Servicers must offer the HAMP program first before they offer the HAFA program.

The HAFA program is only for:

Principal Residences

First mortgages

The mortgage is delinquent or will be delinquent in the foreseeable future.

The unpaid balance is less than $727,750.

The monthly mortgage payment is more than 31 percent of the borrower's gross income.

The third rumor that I want to dispell is that this is going to happen right now. NOT TRUE.

This program begins on April 5, 2010 and servicers have until December 31st of this year to opt in to the program.
However, servicers may opt to begin the program at any time before April 5, 2010 as long as they can implement a record keeping system.

The fourth rumor that I want to dispell is that all the lenders are now under these guidelines.

The HAFA program is not LAW. The US Treasury rolled out these guidelines to go along with the HAMP program.

This part really gets me!

"The Treasury has selected Freddie Mac to serve as its' compliance agent for HAFA."

You mean the same Freddie Mac that was involved with the huge accounting and fraud scandals?

According to the Chicago Tribune Freddie Mac executives "devised a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass."

We believe in adding value to our sellers. We are good at negotiating short sales. Short sales are much more about good negotiating skills than anything else and programs like these tend to tie our hands in applying our negotiation skills.

We will take longer short sale times with approvals any day over shorter short sale response times that come back with a Rejection mark on them in order to fulfil their accoutability time frames.

We close 98% of ALL of our short sale listings and other agents do also. If we can do it, then you can too. If you are not closing above 80% of your short sale listings than you need to learn negotiating skills. Negotiating skills is what brings value to your clients and your business. Stay tuned for more details on the HAFA guidelines and forms- consider subscribing to our blog to be alerted of new articles.

Contact Nestor and Katerina Gasset today at 561-753-0135-Don't Lose Your Home To Foreclosure!

Find out more about Florida Short Sales by clicking here.No registration required.






Let's Get To The Truth About HAFA- The New Short Sale Guidelines- Rumors Vs Facts- Copyrighted © by Katerina Gasset *2009* All Rights Reserved.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

You've Got To Pick A Pocket / Advanced Kleptomania

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 03 Dec 2009 16:50:48 -0600

To succeed in good times or bad you've got to pick a pocket or two! Advanced kleptomania for real estate success.

Lets face facts you're not the brightest fire fly in the jar. Times are tough! It ain't easy! Buyers are liars and sellers are worse! It's George's fault! It's Obama's fault! It's the mortgage broker's fault! It's the bank's fault! It's the capitalist fault!

It's not my fault!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yes, I'm entitled! I will succeed even if I've got to pick a pocket or two!

I've seen others that are prospering, they're all a bunch of Artful Dodgers. It's time, if you haven't already to religiously practice kleptomania! You have to learn to steal 24/7. Kleptomania has to become part of your success plan, a part of your life as natural and as often as breathing.

It's not a question of do you or don't you, but rather who you steal from and what you steal! You have to scrutinize your subject very carefully. You have to discriminate, a mistake could lead to your financial demise. Like The Great Dodger himself you've got to practice a light touch, so that your subjects never know! You've got to be able to steal in crowds and one on one with equal aplomb.

To succeed you've got to get involved with the most successful people in your field. You've got to practice urban camouflage. You've got to fit in like White House party crashers and their host. You've got to look like you belong.

The secret is to steal what they'll never miss! Steal their ideas, their professional practices! Take only those ideas that you too can use to succeed! Take only those practices that can be duplicated.

Don't be afraid to question your subject. Most will be flattered, few will recognize the value of what their telling you. If you're questioned tell the truth, "I want to be as good as you!" That they'll believe, but few will believe you are stealing from their success.

Feel free to steal wisdom, where ever and when ever you find it! We're in the people business, any wisdom you find will have been stolen by those that posses it! Wisdom, people knowledge is finite, like real estate, but it can be infinitely duplicate! The details change, the examples are personal, but today's people act as people always have. I'm a fan of Norman Vince Peal, Napoleon Hill and Earl Nightingale, but they just preached what I learned in Sunday school years earlier. I've stolen ideas from them and my favorites Cavett Robert and Art Fettig all of whom freely stole "their" ideas.

Wisdom can't be copyrighted or patented! Wisdom is all in the public domain. Your success depends on you not only stealing those ideas you fine, but on your recognizing and implementing them!

We become who we associate with! If you surround yourself with negative people you become negative. It's better to be a groupie surrounding a success than to be groped by losers! You can find successful people in every market if you look. There is always more than one way and someone is already doing it!

While you're building your success listen to every one! It's not only polite, but you can find gems of forgotten wisdom in the strange places.

I'm entitled!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

200,000 Points 494 Post 5080 Comments 39 Months

William J Archambault Jr (The Real Estate Investment Institute ) — Sun, 29 Nov 2009 17:06:08 -0600

200,000 Points 494 Post 5080 Comments 39 Months. It started in August 2006 I was syndicating my articles to 70 different sights for resyndicating to promote my books. It was working, but other than orders I was getting no feed back. I needed feed back! 36 years managing lending and real estate, I'd had full days of clients, borrowers, REALTORS®, wholesalers, and students lined up at my door. Suddenly it was just me, I needed the interaction. Checks are great, but I write about and teach people, buying and selling real estate, REALTORS® doing their thing, and montage lending and borrowing.

In the people business you need people, people that are doing things! People to learn from and people to teach which always teaches the teacher! People to act as sounding boards to hone and prefect your ideas and presentations. At the Bank I'd had 5 senior officers and my staff to interact with. In my REALTOR® days I'd spent 3 days and 2 nights a month for 10 years cloistered with Chapter # 1 of The Farm and Land Institute and almost 11 years with the CCIM's marking group (no I'm not a CCIM, I turned it down, major mistake!) for another 2 days and a nights of networking each month. Back to lending and there was always a line at my door.

Real Estate people need not only clients to sell to, but peers to interact with and learn from!

Unfortunately, all to often Real Estate People see their peers as competitors. These same people think they sell real estate or mortgage money. They're wrong! Real Estate people sell advice, wisdom, consoling and comfort to clients in stressful situations. Real Estate people sell their services! No one else can sell you! You have no competitors!

Once you accept the simple truth, you have no competitors, then networking aiding and being aided by your peers is the best way to build your skills and since most work in a relatively small geographic area those same peers can become a major source of referrals.

That's why I participate in the Rain! I sell my services, because of what I've been taught by the great people I've been privileged to associate with. My service are relevant and up to date thanks to friends known and as yet unknown sharing in the Rain.

So ends the post that puts me over 200,000 points. 200,000 Points 494 Post 5080 Comments 39 Months. Thanks to all who've helped me and all who will help!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Great People Up Dated For Thanks Giving 2009

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 26 Nov 2009 19:50:34 -0600

Great People Up Dated For Thanks Giving 2009

I wrote this a year ago,I can think of nothing I'm more grateful for this Thanks Giving!

Some where in the Mid-West there was a tragedy last night. Some one lost their life. Their family faces the horror of the unexpected, but with love in their hearts they offered a gift of life.In the mist of pain they generously donated the deceased organs. Pray for them and their loved one, for they are truly great and generous people.

Very, very early this morning, my brother Joe got a call from the hospital, get here now! Joe's kidneys had failed two years ago, the results of type 1 diabetes he's suffered with since he was 4 or 5. Joe is also getting the pancreas some time tonight. 43 years of insulin shots several times a day, two years of dialysis three times a week, yet Joe will leave the hospital with out an insulin kit, Joe won't live between dialysis appointments for the first time he can recall. Pray for Joe, too. He's a good man and father. His twins are just finishing their first semester in collage.

Consider donation. Talk about it. I can only think of one harder decision. Leave a living monument to your love one.

Up Date.It's been a great year for Joe, he had a little trouble at first with an infection, but that was curred in short order. Neather the transplant or his former dibetiest have bothered him. He's healther than he's been since starting school.

God Bless the doner's family!

And, to all a Happy Thanks Giving.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Grandmas' House

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 25 Nov 2009 20:40:06 -0600

I've talked with my brothers today, they both brought up Jack and Grandma's house. It seems a good time to remember and be thankful for the good times and memories.

Bill

Via Brenda Archambault (The Real Estate Investment Institute):

I though I would re post this today as we all get ready to go over the river and through the woods.

There was a time in our lives

As you well know,

When there was a special place

Called Grandma's House.

On a quite street

Lined with proud old trees,

Was an aged two-story house

That meant so much to me,

Called Grandma's House

It was filled with love

That grandparents and grandchildern share.

And it was felt by all

Who entered there,

You knew it was a grandma's house.

Grandpa in his favorite chair

Watching "Gunsmoke" on TV,

And Grandma in the kitchen

Wanting to play cards with me,

This was Grandmas House.

Aunts, uncles, and cousins

All gathered for a holiday,

Made Thanksgiving and Christmas

Unique in a way,

Know only to Grandmas House.

First Grandpa then Grandma

Sadly I say -have died,

And no one knows how much

We individually cried,

To loose what was special about Grandma's House

The memories are with me

As I age and I roam,

About the qualities essential

To make a house a home.

Shared by all at Grandma's House.

I'm thankful I knew my Grandma's House.

9-12-1982

©Estate of Jack Archambault 2007
Brenda

Brenda C Archambault

Kalamazoo, Paw Paw, Incline Village, Boulder City, Las Vegas, Houston

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Can We Afford A Bargain

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 25 Nov 2009 14:32:27 -0600

Can you afford a bargain? Are bargains a good thing? Is it enough to call something a bargain or special? Is a lower price always good? Does fast food marketing resemble real estate and real estate services?

Brenda and I were running around late yesterday afternoon. Late for dinner as we finally headed home when we see a sign offering a Tuesdays only special on a 10 piece "bucket" (if you can call a small box a bucket) of chicken for only $8.00! The sign was next to the every day 10 piece "bucket" for $15.00. It turns out that the daily price includes two large "sides" Tuesday's special was just 5 legs and 5 thighs. That was ok, we were headed home, we could nuke a vegetable quickly and we didn't need the roles and potatoes. We didn't need 1o pieces but it would be good cold for lunch tomorrow.

Now I wright about real estate, this seemed like some of the bargain discount brokerage services. Save, save, save! We can't skip a bargain.

Save, save, save! We can't skip a bargain. I stopped, and Brenda ran in to get our special/bargain chicken dinner! I waited, not concerned with cost of the sides we'd get at home. After all we were getting a deal! A special! A bargain!

It seem's to me we were getting dinner just the way so many get their real estate and real estate services.

Brenda came back and as we were driving by the next window we say the next sign.

Like a lot of consumers we got more than we wanted to save money, so we didn't shop, we didn't research the market. We'd got a bargain, based on comparing a dinner with just the chicken, we got a bargain, a special, the seller told us so!

Then like so many, we were enlighten! The other Tuesday only special was one leg and one thigh for $0.99! The very same thing purchased piece meal was $3.00 /38% less! $5.00/63% less if we got just what we wanted.

Dinner or the investment of a life time it pays to do your recherche!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

My First Sale

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 24 Nov 2009 00:07:06 -0600

My First Sale.It was 1973 and I had left the bank to sell real estate. I was licensed and chomping at the bit to get started. A banker I had the wardrobe, a collection of three piece suits, I knew credit, a little contact law, and I'd past the Michigan real estate exam with 98 out of 100. (I never did find out which two answers the state had wrong!) I need a quick sale! My broker made me promise that I'd buy a car after my first sale closed.

I'd reluctantly made the promise, I'd had to turn in my company car when I left the bank, all I had was a small truck, and an even smaller airplane, neither good real estate vehicles. Admittedly the truck was a 150 MPH, Ford Ranchero that sat 3 if they were friendly, the plane only sat two and they had to be very friendly.

I had floor time and there I sat in the floor both, one of two that the company receptionist direct sales calls and walk-ins to alternately. This was only my second day on the floor, the other man was in my booth trying to coach me, when three people came in the front door. The other guy says I'll take the couple, you could never show that women a house. He was wrong! If I'd take the box cover of the back of my truck she could ride there. But, he was right there was no way that woman could have gotten in the front seat of my truck.

I got the single guy. Ron was a local school teacher, leading a duel life. Ron was a single father! This was almost unheard of in 1973. Ron's seven year old son stayed with his Grandmother, Ron's mother in Chicago, just over 100 miles west on I-94. Ron would pick him up after school on Friday and communed from his mothers house to work on Monday mornings and the more frequent weekday round trip when his son needed him. It had been an exhausting two years and now at the start of his third year teaching he'd been informed by the school system, that he'd been granted tenure. Ron wanted a home of his own! His now second grade son and he would have the same hours.

Two weeks later I found Ron the perfect house, a three bedroom, two bath split level that had been on the market well over a year. Ron, made a low offer that he could easily afford. I couldn't present the offer as I'd been taught, because the seller was out of state. Delivering the offer to the listing agent, he read it ask how is his credit? I told him very good. He responded we'll take it. He said he'd call me. The next day he called said his seller had a couple of questions, was the earnest money real, cash or a check? I told him a certified check. He said that the seller wanted a longer period to close, he'd had a buyer back out when the loan wasn't ready on time. They wanted to give the buyer more time, I said he'd take it. A few days later the signed contract came back, Ron signed the counter that now had the contract running until closed. Now I though this was ridiculous but so what? Little did I know.

Ron and I quickly became friends, both Marines, he was a few of years older than me. It was a good thing because it took a good six months to close that loan! The problems with the loan are a long and nasty story, so nasty that I can't use the participants names, most are long gone or retired but they have family names. By the time we closed the loan on my first sale, I had already closed my first million.

Finely closed and near the end of the school year, Ron's mother was going to bring him his son and stay the summer to help him get settled. I met Ron at the house and took him the keys late on a Wednesday night, we opened all the curtains and cracked a couple of windows. Ron had friends helping him move Saturday and Sunday. Mother and his son would be there Tuesday evening after the boy's last day of school in Chicago. Ron was ecstatic.

Brenda and I had just finished dinner Friday night when Ron called, it took some time to calm him down enough to understand Ron needed us at his new house NOW!

Brenda and I grabbed our son Eric and jumped into our brand new four door , I'd keep my promise the day I got paid for my first sale, and off to Ron's.

Ron meet us at the drive, my friend the Marine was so up set he couldn't speak, he waived us inside.

There on the wall facing the window, the wall that had been off white when last we'd seen in was a twelve foot tall naked woman posed ready for an exam by her Ob-gyn, and in great detail! The former tenant had painted the lady using an iridescent paint that absorber the suns energy. The lady only displayed herself in the dark. Ron was nearly thirty, a divorced father, he'd seen a naked woman before! But, he was panicked!

Did I mentioned Ron was black? No because it wasn't relevant to Ron or me, but it's necessary to understand his panic. Ron's widowed mother was 300 pounds of Bible thumping Black Baptist Preacher! She'd have a problem! A big one. I'd met her, I was now scarred too.

We sent Ron to the paint store, Brenda and I went to change our close and get our painting equipment. After 21 coats of sealer paint we said good by to the Lady. Ron's mother arrived to find the house full of unpacked boxes and wanted to know what he did all weekend. Brenda and I took Ron a nice house warming present the next night and got to know Mama.

The next summer Ron and his son spent two weeks with Mama in Chicago, returning home Ron found his son had left the living-room curtains open. That night on his way to the kitchen his now 9 year old son met the lady. Ron stayed up all night having that talk with his son. When he called me I introduced him to a dry-waller.

Several years later Ron's Mama was at his place and wanted to see me. As I was saying good-by she whispered to me, "I know about the Lady and what you and Brenda did, God Bless you." One of my warmest real estate moments. Brenda and I were out of state when she passed.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Beyond The Box / Refusing To Be Boxed In

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 23 Nov 2009 13:42:25 -0600

Beyond The Box / Refusing To Be Boxed In. In my last post, Personal REALTOR® Anecdotes , I was searching for good REALTOR® stories. I was reacting to another bad story I'd seen, not knowing where I was going when I sat down at my computer. My personal anecdote was of a sale in my early days, some thing I was proud of and except for Brenda and the Buyers no one knew.

Thinking about that story I realized that it occurred a year before I was taught how to sell a 2% return. See Networking Allows The Impossible .

It occurred at a time when I was so naive that I didn't know that a seller couldn't make an offer to a buyer, first. So stupid that I didn't know it couldn't be done, because no one else was doing it. So foolish that I didn't know that many if not most real estate people don't consider some thing legal simply because it's not illegal.

The fact is all I knew at that point was lending and that in my new career as a real estate agent's main purpose was to solve clients real estate problems.

A few months later I joined Chapter # 1 of The Farm and Land Institute, NAR. FLI taught me very quickly that their purpose was just what I'd stumbled into! To solve the people problem! FLI went on teaching that without a lot of liquid assets the best way to solve one problem was to combine two. One person's problem is often another's opportunity!

These old men and women, most of whom were older than my parents, many old enough to be my Grandparents, weren't concerned with the perfect deal, like the CCIM's, not a great deal like the local board, but rather with a good-doable deal! They looked for solutions to the people problems. To them a great deal was the best doable deal that left every one better off than before!

We were having almost as many problems in 1974 as we are today. Making "the perfect deal" a figment of the CCIM's imagination, holding out for "great deals" left the local board floundering while these FLI types were going from closing to closing. Their clients both buyers and sellers loved them.

Admittedly, most FLI properties were investments not SFR. So what the ideas worked!

So many of us are boxed in not by real estate laws. Not by board rules. Not by the clients. We're boxed-in by our own perception of a need to conform! A need to do things like every one else! A need to follow rules imposed by powerless people. There may be little profit, little client service in the box, but there is communal sympathy and a comfort zone inside the box!

A straight jacket is not a fashion statement!

You sell a 2% return by finding some one making only 1% and doubling his return!

It's time to stand on your soap box not hide in it!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Personal REALTOR® Anecdotes

William J Archambault Jr (The Real Estate Investment Institute ) — Sun, 22 Nov 2009 15:21:42 -0600

Personal REALTOR® Anecdotes. On my last post Joy Carter REALTOR® commented: "It is amazing how often they feel they know more than we do. They hire us for our expertise and then refuse our advice!" It's a great observation about common consumer behavior. I didn't respond because she made some more relevant points.

I suspect people question their REALTORS® because everyone over 30 knows some if not many bad REALTOR® stories. Some are even true. Most start with the results and alter the facts to change the blame!

What about the good stories?

How many good stories, besides your own do you know? We've all got an endless supply of client abuse and poor service stories. We have a few on both sides of the headline making extremes, but how about those great personal moments?

What have you done to better some ones life that onlt the participants know?

Please share!

I'll start, add your's below.

I'd been in real estate less than a year when the VP of a local bank ask me to look at an REO the bank had, had for almost three years. This had been a new house lived in less than 6 months when abandon. It was a great 4 bedroom, 3 bath, rancher with full basement and detached 2.5 car garage on about 2 acres. With a huge pool!

What could be wrong with such a place? The pool! The pool was 6 feet of water in the basement! The basement flooded with every rain! It had been built in Southern Michigan's black clay with out the a tile field around the bottom and sump pump. The property had been listed 5 times 6 months at a time, with lots of showings and not a single offer.

To keep this short let just tell you: I knew a young contractor with a wife and three kids, he owned a tractor with a loader up front and a back hoe. He needed a home. He needed a place to park the tractor. He needed a trailer to carry the tractor, He needed a dump truck to hall the dirt he loaded and to pull the trailer. He had the ability to fix the house. He didn't have any savings!

I showed him the house, I ask about the cost of supplies to repair it, he told me. I ask about the cost of the truck and trailer, he knew. I ask him to give me a few days. I presented my ideas to the VP, I came back with a pre accepted sales agreement signed by the seller! The bank financed the house, the cost of repairs, a Dump truck they had repossessed and a new trailer to haul behind it. Needless to say my WIN, WIN, WIN, WIN!!!

My broker wanted to know where I learned to have the seller sign an O & A first, but he forgave me when the bank paid us 8% on everything!

Now what's your story?

Feel free to included links if they're reverent.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

The Accidental Investor Today's Real Estate Speculator

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 19 Nov 2009 09:47:03 -0600

The Accidental Investor Today's Real Estate Speculator. Are you a real estate speculator? Who are the majority of today's real estate speculators? How can you be an accidental investor/speculator? It may surprise you!

The last thing on your mind is investing in real estate. You've convinced yourself can't afford the house you bought four years ago. Or you've lost you job. Your youngest needs his tonsils out, your 16 year was just added to your car insurance, and your oldest needs a prom dress and starts collage in 7 months!

You don't want to invest in real estate! You want to divest! You want to sell your house! Now! To that end you called several local REALTORS® taking bids on listing your house. You listed with the one that said they could get you $235,000.00 and would only charge you 4.5% to do so! You really resented that arrogant agent with all those pretentious letters behind his name, who does he think he is? Suggesting your house is only worth $200,000.00 and demanding 6% for his services.

Well, it's now four months later. Your listing agent now has nine months experience and he proudly tells you about his latest two sales, omitting that they are his first two sales and neither has closed yet.

You're visiting with agent because he's got an offer from that guy who tried to list your house for $200,000.00. He explains that guy ask to present the offer himself, but that he wouldn't allow it. He had to protect you, from this low-ball offer, he was only showing it to you because it was the only offer you've received.

He says the offer is for only $195,000.00. He reminds you your house is worth $235,000.00. He tells you the guy sent over notes about several sales where the sellers got cheated selling houses like your's for under $200,000.00. He tells you he already turned the buyer down, but the agent insisted that according to state law he had to present the offer. Your agent explained the offer was insulting and he'd already written rejected across the acceptance/counter offer box and page 33! He ask you to initial it.

Offended at being offered only $195,000.00 you reject the offer! Or possibly counter at full list price.

You just became a real estate speculator!

Broke with your savings gone, hanging on by your fingertips you just invested in speculative real estate, advised by the least experience real estate agent you know!

Truly, when you reject an offer it's the same as buying your house today with the hope of selling it for a profit in the near future!

A more experienced agent would likely have put it to you just that way. Today's real estate speculator is more likely to speculating on his own home and more likely to lose money than at any time in our history. Like most losers the cause is two fold, personal ignorance and poor advice!

I'm not suggesting that all low offers be accepted, but all offers should be considered not rejected out of hand! When you reject an offer even a low one from a willing and capable buyer you are speculating. You become The Accidental Investor Today's Real Estate Speculator!

Can you afford short term investments? Have you ever heard an old saying about "a bird in hand being worth...?"

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Aces And Eights Just A Friendly Game Of Cards

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 17 Nov 2009 22:37:02 -0600

Aces And Eights Just A Friendly Game Of Cards Real estate is just like a friendly game of cards once there is money on the table!

I read a blog that confused buyer's and seller's civility and good manors with anti-adversarial negotiating. Nothing could be further from the truth! Buyers and Sellers and their fiduciary agents start out adversarial! The seller wants every possible dollar out of his home and the buyer wants the home for the lowest possible price! These diametrically opposed goals are the bases of conflict, they place the opponents in an adversarial relationship!

Adversarial doesn't necessarily mean combative!

A victim of to many TV episodes of "Law and Order" shows and a post Roddy "Can't we all just get along?" King legal farce the blogger purported that buying and selling real estate is not adversarial. Real estate is adversarial, like a friendly game of poker! Like poker we play with our friends and associate and win, lose, or draw we can have a good time if we remain polite, honest and on our best behavior while trying for all the money on the table for our fiduciary.

Convoking all fiduciary agents like it or not the object of the game is to win! Like cards mind your manners, stick to the truth, don't insult the opponent, compromise and give when you can, but keep in mind the goal is to win for yourself and your client! Understand! Your winning doesn't mean the other guy has to lose! Your opponent will fold and wait for the next hand if he doesn't see how your deal will let him win, at least better than the available alternatives!

When I opened my first two real estate firms after three years in real estate, I had the great pleasure and honor to share office space with my partner a lawyer and our landlord another attorney. I learned a lot, most importantly that good attorneys practice win-win, normally: WIN-win!

Act like a TV Criminal Laywer and you may find yourself holding Aces and Eights!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

It's Veterans Day

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 11 Nov 2009 09:26:31 -0600

It's Veterans Day. Have you thanked a Veteran yet?

Least we forget Veterans didn't make war they fought them. Wars have political motives, some noble many less so. Veterans server out of love for there fellow man, nothing less and there is nothing more. No higher calling!

That the rights to Life, Liberty, and the Pursuit of Happiness may be self evident, but you have them because the Veterans love you, loved mankind so much that they fought and often died to win those rights for you!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Semper Fidelis 234 Years Of Tradition 234 Years Of Service

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 10 Nov 2009 08:47:05 -0600

There is no greater complement no greater honor than to have it said that you are always faithful!

Some of us were blessed we learned fidelity at home, from our Parents and Grand Parents. Some of us were honored we learned or expander our faith in the USMC, The United States Marine Corps. Semper Fidelis is a calling, a way of life, it's a religion unto itself. Semper Fidelis the tradition of the Marines is the highest and most difficult of life's callings, it demands self sacrifice, it requires putting what's right ahead of what's convenient or self serving. In the case of Marines it can mean putting what's right a head of your own life.

Happy Birthday Marine Corps! Semper Fidelis 234 Years Of Tradition 234 Years Of Service!

My feelings have been stated allot better than I ever could in the Hymn and Prayer below.

The Marines' Hymn
From the halls of Montezuma, to the shores of Tripoli,
We fight our country's battles in the air, on land and sea.
First to fight for right and freedom, and to keep our honor clean;
We are proud to claim the title of United States Marine.

Our Flag's unfurled to every breeze from dawn to setting sun.
We have fought in every clime and place, where we could take a gun.
In the snow of far off northern lands and in sunny tropic scenes, You will find us always on the job, the United States Marines.

Here's health to you and to our Corps, which we are proud to serve.
In many a strife we've fought for life and never lost our nerve.
If the Army and the Navy ever look on heaven's scenes,
they will find the streets are guarded by United States Marines.

The Marines' Prayer
Almighty Father, whose command is over all and whose love never fails, make me aware of Thy presence and obedient to Thy will. Keep me true to my best self, guarding me against dishonesty in purpose in deed and helping me to live so that I can face my fellow Marines, my loved ones and Thee without shame or fear. Protect my family. Give me the will to do the work of a Marine and to accept my share of responsibilities with vigor and enthusiasm. Grant me the courage to be proficient in my daily performance. Keep me loyal and faithful to my superiors and to the duties my country and the Marine Corps have entrusted to me. Make me considerate of those committed to my leadership. Help me to wear my uniform with dignity, and let it remind me daily of the traditions which I must uphold. If I am inclined to doubt; steady my faith; if I am tempted, make me strong to resist; if I should miss the mark, give me courage to try again. Guide me with the light of truth and grant me wisdom by which I may understand the answer to my prayer. Amen.

Semper Fi

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

FHA 203K Rehab Loans- Important things to know

William J Archambault Jr (The Real Estate Investment Institute ) — Sat, 07 Nov 2009 18:23:37 -0600

I've said this time and time again 203K's are the biggest opportunity today for the common man!

Here's another source.

Bill

Via Jeff Onofrio (Village Home Mortgage ):

There are some important features to remember when looking into a FHA 203K Rehab loan. These are great loans for buyers looking to purchase a foreclosure or short sale or for the home owner who wants to update or remodel there house. Below are a few important things to remember:

FHA loans are for primary residences only- you cannot be an investor and try to get a FHA loan or a FHA 203K rehab loan. This is really important- I cannot tell you how many calls we get from investors looking to utilize this program and or skirt the system. FHA loans are for primary residences only!

2 types of FHA 203K loans- you can go with a Full K or the FHA 203K Streamline. I will explain these two loans in more detail in my next post. But for now just remember that you can only get up to $35,000 with the FHA 203K streamline and the repairs must be cosmetic in nature, nothing structural.

Single close loan- unlike traditional construction lending you only have one closing with the FHA 203K loan. No need for construction loans and then permanent financing with the FHA 203K rehab loan you get all of this in 1 single close solution

Up to 4 unit properties- you can use the 203K loan to finance properties from 1 to 4 units for both purchases and refinances.

Down payment as low as 3.5%- down payments are the same for a regular FHA program as they are or the 203K.

FHA 203K rehab loans are a great alternative to second mortgages, home equity lines and construction financing. Finding an FHA lender who specializes in 203K's is very important. You do not want to be dealing with someone who just started learning this program- you need a seasoned lender who underwrites these loans in house.

Feel free to call me with any questions or if you would like to see if an FHA 203K rehab loan is right for you and your family. You can reach me anytime at 609-217-9409 or via email at jonofrio@village-capital.com.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Key To A Successful Brokerage In Today's Market

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 05 Nov 2009 14:01:59 -0600

is the same as during the last crisis and the ones before it. Has the success of most of the last two decades blocked our collective memory of previous real estate and economic recessions?

I read a blog from a NY or NJ broker complaining that he knew 208 real estate offices that have recently closed, because of the bubble bursting. Well it sounds terrible, but is it? Brokerages like all small business' come and go routinely. Depending on the market area this may not have been unusual, he didn't say. It's very common for good to great salesmen to open their own office and fail simply because being the broker is different than being the salesman! Sales people, very good salesmen are often subject to the "Peter Principal" promotion until they reach their level of incompetence.

There is one basic key to success in a changing market, you need a few stupid agents!

People to dumb to know it can't be done!

People so stupid to realize that displaced homeowners and evicted tenants still have to live some where!

People so dumb that when told "It can't be done" they respond "why not?"

People so dumb they believe "There is always more than one way!"

People so dumb they believe they can do things you can't!

People so dumb they don't know when to quit.

People so dumb they don't understand failure!

People so dumb they succeed on tenacity and attitude when their smarter associate accept failure gracefully.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

The UGG UGG Ugly Spamer

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 04 Nov 2009 13:36:47 -0600

The UGG UGG Ugly Spamer! I think I like the The UGG UGG Ugly Spamer. Ugly has been ravaging older post, and I've enjoyed going back three years and reading some really great post that I either wrote or commented on.

The post we use to write and the resulting threads when AR was so much smaller, provided some incredible learning experiences! At the time when there were fewer of us, experts trended to interact more with each other.

This is not to complain about what we are doing these days Today we are probably more productive, but today concepts are presented on a more basic consumer oriented level and with more politics.

I like looking back! I also like the few extra points we get for reporting the The UGG UGG Ugly Spamer's spam.

Newbies, should pick an expert they like an explore there early blogs! There is a gold mine of knowledge buried in AR's archives free for the taking.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

Keeping An Open Mind

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 02 Nov 2009 14:57:48 -0600

Keeping An Open Mind

with regards to socializes Medicine requires "the willing suspension of disbelief" to believe that there can be any cost savings. But, Keeping An Open Mind, I listened as the Anti-American Socialist Party explained that much of the new cost was going to come from new taxes on "medical devices" and "selected private health insurance plans" I listened as they explained how we could tap into and tax the very cost we were trying to lower.

Keeping An Open Mind I applied "The Scientific Method" to analyze my initial conclusion, could this be any thing, but absurd?

"The Scientific Method"

1. Theorize.

2. Research.

3. Form a Hypothesis.

4. Test the Hypothesis.

5. Analyze your test.

6. Publish your findings!

1. Theorize. You can tap/tax things to power them. Thus we should be able as Obama has suggested tax the components of health care to lower the cost. Health care should be self sustaining.

2. Research. There is precedents in the third world for self-sustaining cultures. It worked for the Donner Party and those athletes that crashed in the Andes.

3. Form a Hypothesis. A well planed Society or machine should be capable of self-sustained production.

4. Test the Hypothesis. Can any thing be self-sustaining/self-powering? We can't test Obama care despite such system has ever been dismantled despite there failures. So we'll try an electrical system. Plugging a light into a power strip plugged in to the wall lights the light. If the power strip powers the light then plugging the strip into it self should power the power strip and the light.

5. Analyze your test. No matter how I tried the light wouldn't light! We can't tax a service to pay for that same service! To believe the socialist we must embrace "the willing suspension of disbelief" the system as proposed can not work! This must be why Congress and selected Unions are omitted from the system.

6. Publish your findings! "Well'a!"

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

I've Got Good News and Bad News

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 28 Oct 2009 19:19:19 -0500

I've Got Good News and Bad News

, good for many home buyers, bad for all tax payers!

The $8,000.00 tax credit has been extended! This is good for most agents, some home sellers, and selected lucky home sellers.

On the other hand it's going to cost home sellers that have to compete with subsidies sales.

Then there are today's taxpayers their children, Gand children, their Great Great Grand children, and on an on!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

Wisdom Is Timeless

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 27 Oct 2009 19:54:01 -0500

Wisdom Is Timeless! Consider the following from the late B. Franklin:

"An investment in knowledge pays the best interest."

"Content makes poor men rich; discontentment makes rich men poor."

"A house is not a home unless it contains food and fire for the mind as well as the body."

"A learned blockhead is a greater blockhead than an ignorant one."

"A place for everything, everything in its place."

"All mankind is divided into three classes: those that are immovable, those that are movable, and those that move."

"Anger is never without a reason, but seldom with a good one. "

"Any fool can criticize, condemn and complain and most fools do."

"Any society that would give up a little liberty to gain a little security will deserve neither and lose both."

"God helps those who help themselves"

"Half a truth is often a great lie."

"Having been poor is no shame, but being ashamed of it, is."

"He that can have patience can have what he will."

"He that is of the opinion money will do everything may well be suspected of doing everything for money."

"He that lives upon hope will die fasting"

"He that waits upon fortune, is never sure of a dinner."

"He that won't be counseled can't be helped."　

"Honesty is the best policy"

"How few there are who have courage enough to own their faults, or resolution enough to mend them"

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

So how long is my Pre-Approval Good for?

William J Archambault Jr (The Real Estate Investment Institute ) — Sat, 24 Oct 2009 21:38:52 -0500

I'd have said: READ THE PRE-APPROVAL! Some are only good until the ink drys.

I just re-blogged Ken Cooks article on pre-approvals, I'm going to do the same with your's people should read and re-read both!

Bill

Via Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans):

Easy answer, 60 days. But I guess that depends on what kind of Pre-Approval you received or want for that matter. Actually, the answer to such a question depends upon three factors:

- You, as the consumer.

- The Buyer's Agent who is helping you find a home.

- And the quality of the Pre-Approval you receive in the first place.

Ten Seconds, GO - You're interested in buying a home. You even find a few that tickle your family bone. But you need financing because you probably don't have the cash to buy it outright. Which leads to...

Nine Seconds - You're smart and seek out a Buyer's Agent to represent you. This will provide protection in your favor. They represent you and only you.

Eight Seconds - That agent may turn you onto a few folks like me who can help you out from the financing end. And that doesn't mean you shouldn't shop on your own. But buying a home isn't just about getting the lowest rate with no fees (an oxymoron if I've ever encountered one), it's about trust. Interview those who express interest in earning your business and keeping it. If they have the lowest rate with no fees, I can only hope they are in business when you need to do business again.

Seven Seconds- The Pre-Approval is more than just an application and credit check. There's some serious competency going on. They ask for your most recent pay-stubs, W-2's, bank statements, and the last time you had a wet dream about Richard Gere.

Six Seconds - You find a house that you want to call home and a Sales Agreement has been signed and accepted by all parties. And there you are.

Five Seconds- You're hopefully just padding the documentation that you've already given to the Mortgage Company you choose. I recommend Sardi Mortgage Inc, who isn't licensed just yet ... but when you hear Sardi, that should mean something. I'm not sure what, but it means something. Maybe it just means that there is an individual who is all over your particular file like white on puss.

Four Seconds - Appraisal is ordered and done. The rest of your file is pretty complete because everyone got along and did what needed to be done.

Three Seconds - The complete transaction goes into Underwriting, those dastardly folks we think of who hate closing loans. I'll give you a bit of info here, and I usually don't stick up for Underwriters. They only get paid when folks close loans. Without us, there is no them. So, that's that. In business, there's more to it than that, but that is a pretty accurate description.

Two Seconds - You are CLEAR TO CLOSE. If there were three words that were magical in this industry, those are they.

One Second Left - It's a proclamation of your destination. You hit home!

And when there's no time left, that's the perfect time to be imperfect. And that's the perfect way NOT to close.

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

Pre-Approval, Approval, Conditional, Cleared - What the ____?!

William J Archambault Jr (The Real Estate Investment Institute ) — Sat, 24 Oct 2009 20:58:32 -0500

This post doesn't need allot of additional comment from me. It needs read and reread!

Thanks Ken.

Bill

Via Ken Cook, FHA Home Loans 678-439-8683:

Ancient Mortgage Proverb: No deal is ever 100% certain until the loan is completely paid off.

There exists a chasm in communication, familiarity and point of view between agents and loan officers. Sometimes we try to act like it does not exist and we really wish it was not so. I know this chasm exists, just as you do for many reasons, because I have had real estate agents - very good agents - try to convert to loan officer at my companies and I have seen this chasm immediately appear. Sales are fairly and generally black and white, go or no-go, yea or nay. Either the seller accepts the offer, counters or declines. Every agent I have seen try to become a loan officer has had a difficult time adjusting to the different levels of approval.

There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don't understand them. Otherwise you're going to continue driving the loan officer (me :) nuts and forcing the weaker ones to lie to you or avoid you. Let me help you not contribute to their delinquency by briefly explaining some of the levels of loan approval and addressing how I handle them individually.

First please recognize the average loan has many human and non-human touch-points. It's not just the loan officer or just the loan officer and the underwriter. There are also as many as dozens of other humans plus automated systems involved. If the loan application is not approved by each and every one of these processes as required by the lending or insurance (mortgage insurance) guidelines the application will be denied and the deal will be done.

I don't care who the loan officer is, where they work or what they say - these are constants and work the same way at every lender/bank/broker unless the person you are talking to has the money in their personal checking account and are personally making the loan - something a loan officer does not have the authority to do for any lender.)

Application Approval - these are generally worthless. These are generally called a pre-approval and sent on a letterhead from the bank, lender or broker. These are often given only after accepting the application and examining the credit history of the applicant(s). At this point nothing has usually been verified or even documented such as income, assets and job history. (I do give these and I explain this is a CREDIT ONLY pre-approval and I have verified nothing except credit and payment history.)

Credit Only Approval - see above.

Automated System Approval (Application Stage) - this is also generally worthless. The loan officer generally has not verified income, assets and job history at this point. This is where most "approval letters" are issued on that official looking FNMA Pre-Approval sheet. (I give these as well and explain I still need all the documentation and several verifications of documenation from the appropriate source.)

Underwriter's Opinion Pre-Approval - again basically worthless for the same reasons. (I give these ocassionally when there is a borderline issue as in tax returns for example.)

Underwriter's Conditional Approval - this is where the loan officer should have a very good idea if this application will be approved. There can be as many as 3 or more weeks between the Application Approval and this date because this is the first time anyone has looked at the complete application package which will include: income documentation (pay stubs, tax returns, etc.), asset documentation (bank statements, retirement account statements, letters of verification), employment verification, rent/mortgage verification, appraisal, insurance documentation, inspection (if required), fully executed and legible purchase agreement, and whatever else is needed. THIS IS STILL NOT AN APPROVAL! There will be conditions and until the conditions are satfisfied this is not a loan.

Clear to Close (or Cleared to Close) - this is it. This is the first time ANYONE can assure this will be a finalized transaction and it does have an expiration - usually 7 to 10 days after the approval.

-Side note about conditions. I had a first time home buyer ask me about "Conditions" the other day. He's a young and single man so I used an illustration I thought he could easily understand. I said, "Suppose you finally get up the courage and ask that pretty girl out on a date. She tells you she will go out with you if you drive a red sports car, pick her up at exactly 7PM and take her to the most expensive restaurant in town." I needed to offer no further explanation of conditions.

The bottom line is this: If you do your job right, the loan officer does their job right, the title/escrow agency does their job right, the appraiser does their job right, the inspector does their job right, the insurance company does their job right, the buyer's employer does their job right, the buyer's current mortgage company or landlord does their job right, the person giving the gift (if there is a down payment gift) does their job right, the IRS does their job right, the borrower's accountant/CPA does their job right, the seller does their job right, the appraiser does their job right, the HOA does their job right, the inspector does their job right, the processor does their job right, the underwriter does their job right, the closing co-ordinator does their job right, the funder does their job right, the seller's agent does their job right ... that's most of them ... then within a few days to a few weeks we'll meet at the closing table. Until then NOTHING is certain.

Now do you still want my opinion or do you want to wait for the truth?
Ken Cook - Nationwide Specialist - Information/Marketing - FHA Home Loans
678-439-8683

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

Real Estate Success With Things We Know

William J Archambault Jr (The Real Estate Investment Institute ) — Sat, 24 Oct 2009 14:58:23 -0500

! Yes, many of us have the tools for success from past experience.

You may not have had the honor of being a Marine, but no one has missed John Wayne's movies. Unlike any other service in the free world the United States Marine Corp lives their moto Simper Fidelis! Semper Fi, always faithful! There can be no greater thing said about your broker/agents than they are always faithful!

Many more of us were Boy Scouts. The Boy Scouts moto: Be Prepared! A successful agent must be prepared. With the tools and forms of real estate and the knowledge to use them.

Then there is the inspirations of Ansel Adams.

Adams took photos most were done with a huge view camera. He'd lug his hevey equipment to the selected spot set it up focus often shifting the focal plane to correct for parallax and then wait! He'd sit with his camera ready and wait for the perfect light. If he though he'd missed the light he'd wait for 24 hours for it to return. It was rare he had more than two or three plates (pieces of film) with him. In this age of digital cameras, instant gratification and multitasking, it's hard to know what is more impressive, his eye for natural beauty or his patience to get it right the first and last time!

(The Winding Road to Success, WJA 2007)

It's the same with Real Estate Success!

Real Estate Success With Things We Knon! Always faithful, be prepaired and get it right the first time!

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

Why Real Estate? Of All The Career Choices Why Real Estate?

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 22 Oct 2009 19:14:30 -0500

Why Real Estate? Of All The Career Choices Why Real Estate

Think about it! Why Real Estate? What attracted you into a career selling or financing real estate?

It can't be security! Sales are cyclic. Were you misled? The first 17 of the last 20 years just kept getting better. At the same time almost any fool could succeed, at least to their personal standards. So again I ask Why Real Estate?

Now that you know the true nature of a career in real estate Of All The Career Choices Why Are You Still In Real Estate?

Why Real Estate?

Is it the money? The money can be good, it can be great, but those making great money could do well in many fields! Why Are You Still In Real Estate?

Why Real Estate? Is it the freedom? In what other field can you work only half days and it not matter which twelve hours you chose? How many careers let you be on call 24/7/365?

Why Real Estate? Is it the prestige? Where have you been for the last three years? Only used car salesmen and a few knowledgeable consumers look up to us. Of All The Career Choices Why Are You Still In Real Estate?

Why Real Estate?

Is it the employee benefits? Ya right!

Why Real Estate?

I can only speak for myself, but I'd love to hear your reasons.
Why Real Estate?

Because, I've never found any thing more satisfying!

I am an amateur social anthropologist, I love watching people, in all their follies.

Because, in real estate every thing I've ever done has been good for my clients. Where else can you leave every one better off for having dealt with you?

Because, I never accept "no" or "it can't be done!" Just because some one else can't do some thing doesn't bother me. In what other field can we have the independence to set our own limits! "There is always more than one way!"

Because, I've been able improve many lives. Not only my clients, but my real estate developments go no enriching countless others who'll never know me!

Why Real Estate?

Because, there is no greater satisfaction improving lives! For me, after smashing my leg it meant returning to a very specialized version of where I started in lending. It gave me a chance to deal with 20 to 50 people for each of my REALTORS®. Today I sell a few books and teach!

Why Real Estate?

There is nothing I enjoy more!

And, you, Why Real Estate? What's your excuse?

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.