Ron's Blog

Bridging the Gap to Real Estate Success: How To Survive These Tough Times /09.04.08

2008-09-05T02:13:22Z

Bridging the Gap to Real Estate Success: How To Survive These Tough Times /09.04.08 (edit/delete)

Imagine, attempting to dig a well in the spring, when the ground is extremely soft; it would be quite easy, wouldn't it. Now imagine starting that same project in the winter, when the ground is very hard; not so easy now, is it? But the well still needs to be dug- just takes a little longer and abit more effort; the well eventually gets dug.

In regard to your real estate career, under what conditions are you digging? What are you digging for? And will you eventually complete the task?

I hold the profession of Real Estate Agent near and dear to my heart. The opportunity it offers, for men as well as for women, the doors it opens, the families and communities it changes. The Real Estate Industry has turned not a few dreams into realities; fears into fallacy; transformed the lives of individuals; helped folks become the best they can be and to live the best life that our country has to offer.

When I lived in Chicago, I personally knew two women who, due to circumstances beyond their control and with no where else to turn, entered the world of real estate sales with fear and apprehension, along with an overwhelming drive to survive; with limited capital, basic education, and strong a desire to keep there family afloat financially, they carved out a life and a lifestyle that many Americans wish, hope and even pray for.

But "these are tough times", is the common cry heard almost daily. And I acknowledge, "these ARE tough times" indeed. But, when you think about it, wasn't it "tough times" that drove these women into the field of real estate sells? Wasn't it "tough times" that motivated them to come into the office and start a little earlier each day and to stay a little later each night- working to convert each lead as if it were there family's final meal?

Yes, it was certainly "tough times" that shaped and molded them into the Top Producers that they are today. Martin Luther King Jr said, "The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy." That is to say, the "tough times."

Many entered the real estate business with hopes of financial security, independence, status, power, etc. Others did so merely to keep food on the table and a roof over their children's heads. Regardless of the reasons, if you fail to identify and know exactly what you want/need from this great business, you will loose perspective and focus; begin operating mentally and emotionally exhausted; and ultimately quit when you were so close to winning.

Walt Disney stated: "The only limits to what you can accomplish are the limits you place on your imagination." So, instead of allowing the news and the negative media to beat you down, why not FOCUS on what you want. ENVISION the possibilities. LOOK for the opportunities.

Top Producers are living proof that a person can make millions, both in a bust and in a boom. "Tough times" never stop the Top Producers- maybe slows them down abit; they may have to dig a little harder and perhaps a little deeper; but they keep their FOCUS, hold on to their VISION, LOOK for opportunities and manage to stay on TOP.

So, under what conditions are you digging? What are you digging for? And will you complete the task? Below are a list of about 30 random questions I've put together to help you renew your vision. Go ahead and print them off- yes, right now.

Read them, review them, and think about them deeply. Write your answers out. Do the same tomorrow and the next day. Share them with your colleagues and/or team members. Feel free to discuss them at your next meeting.

And if you're really up to it, shoot your answers back to me (your confidentiality will be maintained). I would love to hear from you.

If you could make your real estate business look exactly the way you want it to look... Then what would it look like?

•· On average, how many closings would you have per month?

•· What percentage of your business would come from: FSBOs, Expireds, Ads, Referrals, Web, Social Networks, Other...?

•· What would your average client "look like? (FTHB, Yearly HH Income, M/F, M/S, Age, Blue/White collar, Other...?)

•· What would your perfect client look like?

•· What would your perfect Loan Officer/Mortgage Planner look like?

•· What would your perfect Title Company look like?

•· Would you have a niche? If so, what would it be?

•· What would your lead conversion percentages be?

•· Would you have an assistant? If so, how many? Full time or part time?

•· How many hours would you work per week?

•· Would you work on the weekends?

•· What time would you begin work each day? What time would you end?

•· Would you be part of a team or work independently?

•· Would you host Open Houses?

•· Would you farm specific areas?

•· On average, how many listings would you hold/carry? What would be your average list time?

•· How many buyers would you work with in a given month?

•· What sort of pre-close and post-close system would you use? What type follow up system would you have?

•· On a scale of 1-10, how would you rate yourself: in industry and market knowledge? In presentation and closing skills? In negotiation skills? In overall selling skills?

•· What technology tools would you use?

•· What would your clients say about you to others?

•· How many industry designations would you have?

•· What classes and seminars would you attend and how often?

•· What organizations would you belong to?

•· What books and periodicals would you read and how often would you read them?

•· What are your strengths? What are your weaknesses? (Sorry, Chocolate is Not an answer B-)

•· What are some other business related things you would be doing that I haven't already mentioned?

•· What are some of the activities you would engage in when you were not working in real estate?

•· What would your annual gross commission income be?

•· Finally, what would be your major reason for showing up for work each day?

Bridging the Gap to Real Estate Success: How To Survive These Tough Times /09.04.08

2008-09-05T01:48:05Z

In regard to your real estate career, under what conditions are you digging? What are you digging for? And will you eventually complete the task?

And if you're really up to it, shoot your answers back to me (your confidentiality will be maintained). I would love to hear from you.

If you could make your real estate business look exactly the way you want it to look... Then what would it look like?

•· On average, how many closings would you have per month?

•· What percentage of your business would come from: FSBOs, Expireds, Ads, Referrals, Web, Social Networks, Other...?

•· What would your average client "look like? (FTHB, Yearly HH Income, M/F, M/S, Age, Blue/White collar, Other...?)

•· What would your perfect client look like?

•· What would your perfect Loan Officer/Mortgage Planner look like?

•· What would your perfect Title Company look like?

•· Would you have a niche? If so, what would it be?

•· What would your lead conversion percentages be?

•· Would you have an assistant? If so, how many? Full time or part time?

•· How many hours would you work per week?

•· Would you work on the weekends?

•· What time would you begin work each day? What time would you end?

•· Would you be part of a team or work independently?

•· Would you host Open Houses?

•· Would you farm specific areas?

•· On average, how many listings would you hold/carry? What would be your average list time?

•· How many buyers would you work with in a given month?

•· What sort of pre-close and post-close system would you use? What type follow up system would you have?

•· On a scale of 1-10, how would you rate yourself: in industry and market knowledge? In presentation and closing skills? In negotiation skills? In overall selling skills?

•· What technology tools would you use?

•· What would your clients say about you to others?

•· How many industry designations would you have?

•· What classes and seminars would you attend and how often?

•· What organizations would you belong to?

•· What books and periodicals would you read and how often would you read them?

•· What are your strengths? What are your weaknesses? (Sorry, Chocolate is Not an answer B-)

•· What are some other business related things you would be doing that I haven't already mentioned?

•· What are some of the activities you would engage in when you were not working in real estate?

•· What would your annual gross commission income be?

•· Finally, what would be your major reason for showing up for work each day?

New FHA Loan Limits for TN

2008-03-07T18:55:12Z

Now I can better help you, help your clients with not-so-perfect credit and/or limited cash to purchase a home in the $300-400K range. FHA generally has the best rates and the lowest MI payments.

So what are you waiting for? Block out an hour or two each day, get on the phone and spread this good news! Look through your old turn downs and inactive leads and give them a call. If they're still interested, call or email me their info. It ONLY takes me @20 mins to prequal.

If they're still not ready, I'll put them in our "Home Ready" program and have them ready to buy in as little as 90-120 days (results vary).

Let's work together to make the Nashville housing market the HOTTEST in the nation; and make 2008 your best year ever!!

Mortgage maximums as of Friday March 07, 2008
(1 records were selected, 1 records displayed.)

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA)	34980		DAVIDSON	037	TN	$432,500	$553,650	$669,250	$831,750	03/05/2008

Mortgage maximums as of Friday March 07, 2008
(1 records were selected, 1 records displayed.)

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
MEMPHIS, TN-MS-AR (MSA)	32820		SHELBY	157	TN	$271,050	$347,000	$419,400	$521,250	03/05/2008

To your continued success,

Ron, the Mortgage Doc of Music City

Judge Throws Out Down Payment Assistance

2008-03-06T17:03:09Z

Judge Throws Out Down Payment Assistance (edit/delete)

Judge throws out ban on down-payment assistance

HUD must reopen rule-making process

Inman News March 5, 2008

Federal regulators have not adequately explained their decision to reverse a policy allowing seller-funded down-payment assistance on FHA-backed loans -- or provided sufficient responses to suggestions on ways to mend, rather than end, the practice -- a federal judge has ruled.

The ruling means the U.S. Department of Housing and Urban Development will have to reopen an administrative proceeding that culminated in a rule change last October banning seller-funded down-payment assistance on loans guaranteed by the Federal Housing Administration (see Inman News story).

Claiming seller-funded down-payment assistance artificially inflates home prices and more than doubles the odds that a loan will end up in default, HUD put forward the proposed rule change last spring. A final rule banning the practice was published in the Federal Register on Oct. 1, after HUD received more than 15,000 comments on the proposal.

Three nonprofits that provide seller-funded down-payment assistance filed separate lawsuits to block implementation of the rule, saying it would have a disproportionate impact on minorities, low-income and single-parent families who rely on the down-payment-assistance programs they provide.

In a Feb. 29 order setting aside the rule change, U.S. District Court Judge Lawrence Karlton said that although HUD provided a "reasoned basis" for the rule change, it "was not honest with itself or the public that it was reversing course from its prior policy."

In putting forward the proposed rule change, Karlton said, HUD presented evidence that seller-funded down-payment assistance harms consumers by inflating home prices, and that the increased default rates on such loans leads to greater losses. HUD also noted abortive attempts at ending seller-funded down-payment assistance during the Clinton administration.

But more recently, Karlton said, HUD had "warmed" to seller-funded down-payment assistance -- a fact omitted in its arguments for a change in course.

In a 2005 letter, HUD Assistant Secretary for Housing Brian Montgomery defended seller-funded down-payment assistance against calls for a ban by the U.S. Government Accountability Office. Although Montgomery recognized problems with the practice, he said those who relied on seller-funded down-payment assistance "are representative of the population that FHA was established to serve."

At the time, Montgomery said that instead of banning the practice, FHA would rather charge higher premiums on loans that relied on seller-funded down-payment assistance.

Karlton said that "while HUD may have set forth good reasons for the rule's adoption, it did not adequately explain why it was changing its mind."

By failing to acknowledge its previous position, HUD violated the Administrative Procedures Act, which governs the process for implementing such changes, the judge said in his order.

Karlton said HUD also failed to provide an adequate response to some arguments put forward by proponents of seller-funded down payment assistance for overhauling, instead of abolishing, the practice.

Those suggestions included the same proposal put forward by Montgomery in 2005 -- that HUD implement risk-based pricing for loans involving seller-funded down-payment insurance -- and require lenders to inform appraisers of the source of down-payment assistance.

HUD maintains that it is implementing risk-based pricing, and that FHA modernization legislation now being considered by Congress will lower or eliminate down-payment requirements for some borrowers.

But Karlton said such an argument is "a non-sequitur" because HUD's intent is to introduce risk-based pricing in conjunction with a ban on seller-funded down-payment assistance, rather than in lieu of a ban, as proposed in 2005.

In ordering the Housing Department to reopen the rulemaking process, Karlton barred HUD Secretary Alphonso Jackson from participating in the proceedings because of remarks attributed to him during the public comment period.

In a June 5, 2007, article by Bloomberg News, Jackson was quoted as saying he was "very much against" seller-funded down-payment assistance. "I think it's wrong. I don't want to continue to be a partner in a program where so many people can't afford to keep up their payments."

The article also paraphrased Jackson as saying HUD intended to approve the new rule even if the agency received critical comments.

"Allowing the public to submit comments to an agency that has already made its decision is no different from prohibiting comments altogether," Karlton said.

But Karlton also said courts have found that just because officials take positions or express strong views doesn't mean they are no longer capable of being objective and fair.

Because Jackson was not involved in the original rule-making proceeding -- he had delegated that authority to Montgomery -- it might be "imprudent" to reopen the process simply to exclude him, Karlton said.

But since he had already decided to reopen the process for other reasons -- because HUD failed to provide a reasoned analysis for its departure from prior policy, and did not adequately respond to comments -- disqualifying Jackson "will likely impose little or no burden on the agency," Karlton ruled.

The ruling was made in a case brought by Nehemiah Corp. of America in the U.S. District Court for the Eastern District of California. Two similar lawsuits were filed by AmeriDream Inc. and the Penobscot Indian Nation in the U.S. District Court for Washington, D.C.

Scott Syphax, the president and chief executive officer of Nehemiah, issued a statement this week saying the company was "thrilled with the Court's decision to support low- to moderate-income families across the country" and looked forward to working with HUD in the future."

I would like to hear your comments. Here's what one Realtor in Nashville had to say:

"Thanks Ron for sharing this information. My major problem with Ameridream, Nehemiah, and other downpayment assistance programs, is they don"t really provide any assistance at all to the buyer. In most cases, the downpayment/closing cost plus their application fee, is actually added back to the loan and financed by the buyer. So the buyer pays their own cost, plus a fee just so it can be written into the contract to appear as if the seller is really paying, when in essence he is not. I have real a problem with that, however, most sellers are just not willing to out and out pay this fee from their proceeds.

"In addition, I have a time tryiing to explain to buyers the benefit of these programs when they have to finance the cost anyway. It is this type of thing that inflates the price to a level higher than what the buyer can actually afford. But I guess that's okay. Is anybody else having this problem? Please share your thoughts."

Marjorie Seward The Realty Association

Please share your thoughts...

**Did You Know? Tuesday's rates dipped all the way down to 4.875% on a 15 year Fixed Rate for the first time since 2003!

2008-01-26T20:35:32Z

**Did You Know? With All the negative media hype, seems someone forgot to mention that we are in the middle of a REFINANCE BOOM! HEL-LO-O!! Tuesday's Rates dipped all the way down to 4.875% on a 15 year Fixed Rate for the first time since 2003!

NOW is the TIME to REFINANCE your present Mortgage! And don't forget to ask your loan officer about a NO CLOSING COST Option, their Referral Rewards Program and Special Pricing for Realtors!

Wowzers!! Call Me TODAY @ 615-777-5626 ext 2109 or email ronreed@sellersmtg.com.

**And what an opportunity to get on the phone TODAY and call ALL your CLIENTS and PROSPECTS and just about everyone you know to share this GREAT NEWS with them! Be the HERO in their eyes! NOW is the TIME to BUY (Pick Your House, Make Your Deal & Make Your Move!) or REFI (even if they've recently purchased their home)!

**You NOW have an instant reason to "touch" them once again. And even grab up a handful of referrals along the way by simply asking them, "Who do you know...?" Don't forget to ask me about my Referral Rewards Program and Special Pricing for Realtors. So go ahead and start calling ALL your folks and give me a call at 615-777-5626 ext 2109 or email me at ronreed@sellrsmtg.com

SHORT SALES 11.5 (RE-POSTED)

2008-01-21T17:58:22Z

SHORT SALE HOT LIST 11.5

Since we began our Free "Lunch & Learn" seminar series on "Short Sales" I have been innundated with telephone calls and emails from local and national realtors and investors.

For the benefit of all of you who just can't make it to Nashville, I decided to provide you with an abrevuiated and pithy outline. I have recieved several comments of how the contents of the seminar has "helped save" someones deal.

Please feel free to shoot me an email if you have any further questions, comments, suggestions, etc.

To your continued success,

Ron, "The Mortgage Doc of Music City"

Definition: A legally binding agreement to allow a home to be sold for less than the current amount owed. An arrangement by which the bank or lender will accept an offer for less than the total amount owed to pay off the home. This deficiency is the amount that is Short.

1. Do I have a deal?

Have I seen the clients Credit Report?
Have they been Served Default Notice?
Are they really Upside Down?
Have I ordered & reviewed the Prelim Title Report?

2.Is the Homeowner (HMO) on board?

Have I Discussed ALL Options with HMO?
Is the HMO Willing to sign ALL contracts, authorization letter & poss retainer?
100% Yes from HMO?
100% commitment from ALL parties involved?

3.HMO Collect Docs

Hardship letter
Financial Statements
Tax Returns
Bank Statements
Pay Stubs
4506T
Do not move forward until HMO has collected ALL neccessary docs!!!!!

4. Contact Lender

Contact Loss Mitigation Dept
Fax Auth letter along w/ your letter of intent & your resume (or your brokers resume)
Request Short Sale Packet
Request Payoff Letters
Keep record name, date, time, etc.
Remember, NO Guarantee lender(s) will deal
Keep conversation w/Loss Mitigator short & sweet (They DO NOT want to hear your story!!!)

5. Build your Case

Compile a Repair list
Take Ugly Photographs of repairs needed (the uglier the house the better)
Compile recent CMA Reports
Copy of recent appraisal(s)
Articles, reports, letters supporting prevailing market conditions
3^rd party letters: home inspectors, appraisers, contractors, exterminators, ins agents, real estate attys, etc.
Your own "Expert Letter"

6. Start / Keep Looking for Buyer

Not necessarily contract with highest bidder
Buyer Must be willing to wait 60, 90 >?
Buyer May be willing to throw in extra $$ into deal?
Don't spend allot of time & money adv & marketing
Remember, NO Guarantee

7. Submit Docs to Lender: (even if no buyer / contract)

HMO Docs
Prelim Title Report
HUD 1 (Be sure to add your comm./ never ask for less than 8% total comm.)
Purchase Contract
CMA Report
Repair list & ugly photos
3^rd Party Letters
Your "Expert Letter"
Don't "fudge" on your numbers (may backfire on you)
Any Addit'l docs requested by lender

8. Be Willing to Wait

60-90 days>
Control HMO, Buyer, Buyers' Agents' expectations
NO Guarantee = Keep looking for next client

9. Be Ready to Negotiate

Lender will try to stall for More Money
Does HMO have any $$?
Does Buyer have $$?
Lastly they'll go after your commission!!
Commission $$ !! (fight for your comm/you have worked too hard and will earn every penny of it!!)

10. Be Prepared to Close Quickly

Buyer Approval with a 10 day close
Speak w/buyers lenders
Try to get buyer to use your own lender (assuming your lender is expert at closing short sales)

11. Stay Positive, Focused & Flexible

Don't allow HMO, Lender, Buyer, Buyers Agent to cause you to loose your temper
Keep reminding everyone involved of the benefits= sell benefits!

11.5 Always be Prospecting!! Always be Prospecting!! Always be Prospecting!!

Prepared by Ron Reed

The Mortgage Doc of Music City

Referral Only Mortgage Planner

P: 615-777-5626 ext 2109

F: 615-777-5632

Email: ronreed@sellersmtg.com

SHORT SALES 11.5 (RE-POSTED)

2008-01-21T17:55:15Z

SHORT SALES 11.5

SHORT SALE HOT LIST 11.5

Since we began our Free "Lunch & Learn" seminar series on "Short Sales" I have been innundated with telephone calls and emails from local and national realtors and investors.

Please feel free to shoot me an email if you have any further questions, comments, suggestions, etc.

To your continued success,

Ron, "The Mortgage Doc of Music City"

1. Do I have a deal?

Have I seen the clients Credit Report?
Have they been Served Default Notice?
Are they really Upside Down?
Have I ordered & reviewed the Prelim Title Report?

2.Is the Homeowner (HMO) on board?

Have I Discussed ALL Options with HMO?
Is the HMO Willing to sign ALL contracts, authorization letter & poss retainer?
100% Yes from HMO?
100% commitment from ALL parties involved?

3.HMO Collect Docs

Hardship letter
Financial Statements
Tax Returns
Bank Statements
Pay Stubs
4506T
Do not move forward until HMO has collected ALL neccessary docs!!!!!

4. Contact Lender

Contact Loss Mitigation Dept
Fax Auth letter along w/ your letter of intent & your resume (or your brokers resume)
Request Short Sale Packet
Request Payoff Letters
Keep record name, date, time, etc.
Remember, NO Guarantee lender(s) will deal
Keep conversation w/Loss Mitigator short & sweet (They DO NOT want to hear your story!!!)

5. Build your Case

Compile a Repair list
Take Ugly Photographs of repairs needed (the uglier the house the better)
Compile recent CMA Reports
Copy of recent appraisal(s)
Articles, reports, letters supporting prevailing market conditions
3^rd party letters: home inspectors, appraisers, contractors, exterminators, ins agents, real estate attys, etc.
Your own "Expert Letter"

6. Start / Keep Looking for Buyer

Not necessarily contract with highest bidder
Buyer Must be willing to wait 60, 90 >?
Buyer May be willing to throw in extra $$ into deal?
Don't spend allot of time & money adv & marketing
Remember, NO Guarantee

7. Submit Docs to Lender: (even if no buyer / contract)

HMO Docs
Prelim Title Report
HUD 1 (Be sure to add your comm./ never ask for less than 8% total comm.)
Purchase Contract
CMA Report
Repair list & ugly photos
3^rd Party Letters
Your "Expert Letter"
Don't "fudge" on your numbers (may backfire on you)
Any Addit'l docs requested by lender

8. Be Willing to Wait

60-90 days>
Control HMO, Buyer, Buyers' Agents' expectations
NO Guarantee = Keep looking for next client

9. Be Ready to Negotiate

Lender will try to stall for More Money
Does HMO have any $$?
Does Buyer have $$?
Lastly they'll go after your commission!!
Commission $$ !! (fight for your comm/you have worked too hard and will earn every penny of it!!)

10. Be Prepared to Close Quickly

Buyer Approval with a 10 day close
Speak w/buyers lenders
Try to get buyer to use your own lender (assuming your lender is expert at closing short sales)

11. Stay Positive, Focused & Flexible

Don't allow HMO, Lender, Buyer, Buyers Agent to cause you to loose your temper
Keep reminding everyone involved of the benefits= sell benefits!

11.5 Always be Prospecting!! Always be Prospecting!! Always be Prospecting!!

Prepared by Ron Reed

The Mortgage Doc of Music City

Referral Only Mortgage Planner

P: 615-777-5626 ext 2109

F: 615-777-5632

Email: ronreed@sellersmtg.com

Do You Know Your WHY

2008-01-12T22:27:01Z

Know Your Why

Goal: Make $150k my 1st yr GCI? $200k GCI my 2^nd yr? Why?

Goal: Work less than 40 hrs per week? Why?

Goal: make enough money to live in a specific neighborhood? Drive a certain automobile? Take vacations to a specific location? Want my children to attend a certain school? Why? Why? Why?

Do you know what you want?

Do you know why you want what you want?

Knowing our why will help you to successfully meet & overcome obstacles when they arrive (& trust me, they will arrive...)

Knowing our why = knowing what's in our heart and our true desires

Knowing our why helps you to stick to your goals & stay the course, even in the face of darkness, dreariness, fogginess & tiredness & fatigue... When our loved one's, friends and family are telling us to walk away from it all, give up our dream and go get a "Real Job"

Recently I recieved the following email from a Realtor responding to the question WHY?:

"In the three years before I became a realtor, as a budding real estate investor, I was involved with three different realtors. Following their advice, or lack of it, ended up costing me a lot of money.

"I originally became a realtor to be the kind of agent that I needed for myself. In the three years since I've been a realtor, I have found that my reason for getting into the real estate profession was not enough to drive me or sustain me.

"In January of 2006, I was diagnosed with Breast cancer. At the time my income was so low that I qualified for the Nashville Breast & Cervical Cancer Program (NBCCP). After four surgeries and thousands of dollars worth of treatment & procedures later, I will soon be approaching my first anniversary of being cancer free!

"It's a little stretch of my imagination to believe that I have received over a million dollars worth of medical care; all at little or no cost to me.

"My BIG WHY didn't come until after I watched "THE SECRET." I later became an advisor for the National Community Foundation which is the fund raising arm for New Life International.

"As an expression of my gratitude for all I have received, I will be tithing 10-50% or more of my commissions to "pay forward" and perpetuate the abilities of the National Breast & Cervical Cancer Program (NBCCP) and the Nashville General and Vanderbilt Hospitals, to serve women like myself. I'm also planning to fund scholarships for the Meharry medical and dental students.

"You are right! It takes a WHY, and sometimes a really BIG WHY to keep going. You don't have to LIVE LARGE to DREAM LARGE and MAKE YOUR DREAMS COME TRUE!

"Please keep my name confidential. Thank you, also, for holding my vision on to manifestation with me."

Do you know what you want? Do you know WHY you want it?

To your continued success,

Ron, "The Mortgage Doc"

SHORT SALES 11.5

2008-01-12T21:41:53Z

SHORT SALE HOT LIST 11.5

Since we began our Free "Lunch & Learn" seminar series on "Short Sales" I have been innundated with telephone calls and emails from local and national realtors and investors.

Please feel free to shoot me an email if you have any further questions, comments, suggestions, etc.

To your continued success,

Ron, "The Mortgage Doc of Music City"

1. Do I have a deal?

Have I seen the clients Credit Report?
Have they been Served Default Notice?
Are they really Upside Down?
Have I ordered & reviewed the Prelim Title Report?

2.Is the Homeowner (HMO) on board?

Have I Discussed ALL Options with HMO?
Is the HMO Willing to sign ALL contracts, authorization letter & poss retainer?
100% Yes from HMO?
100% commitment from ALL parties involved?

3.HMO Collect Docs

Hardship letter
Financial Statements
Tax Returns
Bank Statements
Pay Stubs
4506T
Do not move forward until HMO has collected ALL neccessary docs!!!!!

4. Contact Lender

Contact Loss Mitigation Dept
Fax Auth letter along w/ your letter of intent & your resume (or your brokers resume)
Request Short Sale Packet
Request Payoff Letters
Keep record name, date, time, etc.
Remember, NO Guarantee lender(s) will deal
Keep conversation w/Loss Mitigator short & sweet (They DO NOT want to hear your story!!!)

5. Build your Case

Compile a Repair list
Take Ugly Photographs of repairs needed (the uglier the house the better)
Compile recent CMA Reports
Copy of recent appraisal(s)
Articles, reports, letters supporting prevailing market conditions
3^rd party letters: home inspectors, appraisers, contractors, exterminators, ins agents, real estate attys, etc.
Your own "Expert Letter"

6. Start / Keep Looking for Buyer

Not necessarily contract with highest bidder
Buyer Must be willing to wait 60, 90 >?
Buyer May be willing to throw in extra $$ into deal?
Don't spend allot of time & money adv & marketing
Remember, NO Guarantee

7. Submit Docs to Lender: (even if no buyer / contract)

HMO Docs
Prelim Title Report
HUD 1 (Be sure to add your comm./ never ask for less than 8% total comm.)
Purchase Contract
CMA Report
Repair list & ugly photos
3^rd Party Letters
Your "Expert Letter"
Don't "fudge" on your numbers (may backfire on you)
Any Addit'l docs requested by lender

8. Be Willing to Wait

60-90 days>
Control HMO, Buyer, Buyers' Agents' expectations
NO Guarantee = Keep looking for next client

9. Be Ready to Negotiate

Lender will try to stall for More Money
Does HMO have any $$?
Does Buyer have $$?
Lastly they'll go after your commission!!
Commission $$ !! (fight for your comm/you have worked too hard and will earn every penny of it!!)

10. Be Prepared to Close Quickly

Buyer Approval with a 10 day close
Speak w/buyers lenders
Try to get buyer to use your own lender (assuming your lender is expert at closing short sales)

11. Stay Positive, Focused & Flexible

Don't allow HMO, Lender, Buyer, Buyers Agent to cause you to loose your temper
Keep reminding everyone involved of the benefits= sell benefits!

11.5 Always be Prospecting!! Always be Prospecting!! Always be Prospecting!!

Prepared by Ron Reed

The Mortgage Doc of Music City

Referral Only Mortgage Planner

P: 615-777-5626 ext 2109

F: 615-777-5632

Email: ronreed@sellersmtg.com

"SHORT SALES: 11 STEPS TO SUCCESS"

2007-12-01T23:00:24Z

"SHORT SALES: 11 STEPS TO SUCCESS"

The Sellers Financial Team in alliance with Southeast Title & Escrow of Goodletsville, TN, host a FREE monthly Lunch & Learn for Realtors, Investors & others. Currently we are covering the topic of "Short Sales: 11 Steps to Success."

For those of you who live outside the Nashville area who would like to recieve a FREE written transcript of the seminar, shoot me an email and type "Short Sale" in the subject line. Also, provide your name, title, company name & city/state.

To Your continued Success,

Ron Reed, The Mortgage Doc

"SHORT SALES: 11 STEPS TO SUCCESS"

2007-12-01T22:53:19Z

To Your continued Success,

Ron Reed, The Mortgage Doc

**Thoughts to Live By: "Happiest People on Earth"

2007-12-01T22:09:27Z

**Thoughts to Live By: "Happiest People on Earth"

In past articles I've addressed the subject of wealth and it's correlation to happiness. And as you may already know, there's absolutely NO connection to being among the nations wealthiest (less than 3% of the US population) and happiness; massive research over the past 100 years bears this out.

So, you may be wondering, "if it is not wealth, then what really is Key to being happy?"

In 2006, a small island chain located roughly halfway between Australia & Fiji topped the global Happy Planet Index. This index, produced by the New Economics Foundation, rated 178 countries for national happiness, longevity, and environmental impact.

Among the larger countries, Germany ranked 81, Japan 95; and while western living standards have improved enormously we have become no happier, the US coming in at a disappointingly low 150. Interestingly, although Vanuatu tops the happiness index, it ranked 207 out of 233 economies when measured against Gross Domestic Product. http://en.wikipedia.org/wiki/Economy_of_Vanuatu

So what IS the Key to happiness? What accounts for the general happy disposition of the inhabitants of Vanuatu, who consume a fraction of the earth's resources by comparison? If not wealth, then what?

"BRIDGING THE GAP TO REAL ESTATE SUCCESS"

2007-11-26T21:57:17Z

Bridging the Gap to Success

Thriving or Surviving?

REPRINT:

I recently received the following message: "I am getting your [newsletter] regularly. How can I become part of a team that REALLY makes a difference? I know I have greatness inside of me, I just need some coaching. If you can help me, you can help many... thanks for your interest."

Several years ago I was involved in a Dirt Bike accident that left me with a slight albeit permanent limp. At the time I was an avid runner and it took about 3 months of physical rehabilitation and an additional 12 months before I was able to hit the running trails again. I survived what could have been a tragic event. And I haven't ridden since.

My motorcycle incident left me with immediate scars- physically and especially financially. My entire life was altered as a result. To this day, my knee joints creak and ache after idle sitting or extended movement. Looking back, which I've done hundreds of times, I know that a simple precaution would have spared me this mishap. Had I taken several minutes to familiarize myself with the route, carefully mapped out my ride and THEN preceded, my course of history would have been dramatically different. I choose not to and suffered the consequences; but as I've said, I survived- never to saddle a motorcycle again.

As you well know, there is a definite distinction between surviving and thriving. Regionally and nationally 50% or more of the licensed real estate agents are merely surviving. Another 25-30% is preparing to leave the industry within the next 6-12 months and only 20-25% can be categorized as truly thriving. What about you? Are you merely surviving or thriving?

There are so many realtors that have traveled this path ahead of you. Some, who have made a success for themselves, would be more than happy to share their stories and experiences with you. A few of the thriving elite have even written books, conduct Seminars and Coaching sessions, offer CD's, as well as instructive programs and systems for a nominal fee. Craig Proctor of Remax Elite is one of them. His team was recently in town promoting their 3 day event in ..:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Denver. Out of all the realtors that I personally know here in Nashville, only one of them actually committed to this event. This realtor has set her mind and heart on thriving and not merely surviving; she knows that following the footsteps of industry leaders and having in place a proven system and a seamless process will take her to the place she ultimately wants to go.

I've listed below THREE things that you can do right now to begin exiting the surviving road and entering among the thriving elite:

1. Set a deadline and decide what you want and determine everything you will need to do to get what you want. In a recent interview, Chris Rock said he decided last year that 2007 would be his best year ever; then he wrote down all the things he would need to do to make 2007 a phenomenal year. Afterwards, he simply began doing them in sequence. What about you? Have you put your thoughts to paper? Goals unwritten aren't goals- they're merely wishful thinking. Did you ever complete your written business plan? Ask yourself, "Do my actions thus far show that I want to thrive or merely survive?"

2. Set a deadline and enlist the help of others. Once your thoughts are on paper and you've written (or re-written) your goals and your business plan, have someone review it- your broker, your loan officer, another successful agent; Solicit ideas from others- if you don't ask you won't get; ask them why they think a particular idea will work and why they think it will not. This is not the time to argue with them- listen and learn! Take a long, hard look at several systems- Craig Proctors' being one of many.

3. Make it happen. Now stop planning and start doing- something, each day that moves you closer to reaching your goals. Never start the day without your list of must do's. Don't worry about making mistakes- we all make them and will continue to make them. It's not the falling down but the getting up that wins races. Utilize the law of attraction- stop worrying and start seeing, acting, thinking, feeling and conducting yourself as the success that you want to be- every day. At the close of each work day, honestly review your activities- "what could I have done differently today? What will I do contrarily tomorrow?" Before you retire, visualize the next day from beginning to end the way you want it to go. And never forget to tell yourself how good of a person you really are and how much you like yourself.

It's time for you to STOP surviving and START thriving! Make YOUR decision TODAY that the remainder of 2007 will be YOUR best ever.

To your continued success ~ Ron Reed

"BRIDGING THE GAP TO REAL ESTATE SUCCESS"

2007-11-26T21:51:19Z

BRIDGING THE GAP TO REAL ESTATE SUCCESS / VOL 8 ISSUE 2

TO SELL OR NOT TO SELL?

REPRINT:

A rookie realtor in the middle of a tight negotiation, having a deal about to erupt in his face, called and asked me what he should do. After I explaining to him how to save the transaction, he responded, "Well, that's easy for you to do; but I ain't NO salesman!" Well, that was surely the truth- he was definitely "NO salesman."

That was well over 2 years ago and since then, I have noticed a number of realtors who disdain the idea of being referred to as a salesperson; relegating this to some sort of second class occupation. Elizabeth Weintraub, realtor and contributing editor for About.com http://elizabethweintraub.com/ made the following observation: "I seem to be in the minority among real estate agents when I say that agents are in the business of sales. Sales is not a dirty word nor an unrespectable profession. We are not consultants, advisers, transaction coordinators, or whatever other label some like to slap on themselves. Listing agents are salespeople with a product to move. And I like it that way."

And I concur. By the way, can you really help someone SELL their home if you're NOT a salesperson? And isn't the whole gamut of prospecting, presenting, overcoming objections and closing, all the major components involved in making a sale?

Salespeople are some of the highest paid people in the country. Without great sales forces (backed by great marketing teams), IBM, Dell, Nike, and other major players would have never reached their zenith. And think of all the jobs that are created and the positive impact this has on the economy.

Sales is undoubtedly among the oldest professions in the world. And in my book, those who make a success of it are among the most positive, energetic, creative, hardest working, respected people on the earth. Just ask Brian Tracy http://www.briantracy.com/, Zig Zigler http://www.zigziglar.com/, Donald Trump http://www.trump.com/ or Tony Robbins http://www.tonyrobbins.com/ to name a few.

One of my favorite books on the subject is "The Psychology of Selling" by Brian Tracy. I strongly encourage you to get your hands on this book and read it with an open mind; read it twice, if at all possible. It will change the way you view sales and salespeople. In fact, I can guarantee you that if you apply only 10% of it's contents, it will change your life; making you a better, higher paid and well respected realtor among both your clients and peers.

Ron White http://www.ronwhitetraining.com/ commented on the subject of sales: "I don't believe there is such thing as a second class position. I believe The Queen of England is of no higher class of a person than my father who is a police officer or my mother who cleaned houses for a living for most of her adult life. I fail to see one human with a brain, spinal cord and heart of higher class than someone with the same equipment. Sales is not a second class profession. There is no such thing. So sell with pride and enthusiasm! "

"BRIDGING THE GAP TO REAL ESTATE SUCCESS"

2007-11-26T21:43:53Z

Bridging the Gap to Real Estate Success (vol 8/issue 4)

Reprinted:

Mortgage Meltdown 2007

Last week, I concluded saying that I would cover the subject "The 10 Commandments of Selling" in this weeks feature article. However, in light of the current mortgage debacle and the calls I've received from realtors and past clients, I decided at the last moment to switch gears.

No doubt you are concerned about the current mortgage meltdown. Since December of 2006 to date, some 114 mortgage lenders have shut their doors- ceased doing business, with job losses nearing 70,000. In the past week alone, over 2 Trillion has been lost in global markets, and the 'experts' say that we are anywhere near the worst of it.

You may be wondering, "What happened and who's to blame?" The media, Wall Street and congress are pointing fingers everywhere. However, the causes of the current mortgage implosion are manifold.

First of all, we have what is known as a sub prime lending. The factors mandating the necessity of a sub prime loan could be little or no down payment, inability to validate tax returns, inability to source down-payment funds, low credit score, previous credit issues- including bankruptcy or foreclosure.

Next, we have what is known as Alt-A lending which is similar to sub prime except the borrower generally has a better credit and asset portfolio.

In the past few years, sub prime and Alt-A loans accounted for anywhere between 40-70% of US mortgage production. These loans yielded much higher returns than standard conforming loans. Couple that with unprecedented housing appreciation in many areas as well as investors clamoring for higher profits; this led to loosened underwriting guidelines and the creation of some pretty wild albeit risky loan products.

Consumers started showing problems in the third quarter of last year. Mortgage delinquencies began to mount and bond investors started pulling back; companies started to falter. It was beginning to look like a perfect storm.

What happened next is we saw the slowdown in the real estate market. Home prices in some areas actually falling. Many had maxed out the equity in their homes and along with stagnate or depreciating values, they were unable to sell or refinance their loan. Then came severe hits from the auto manufacturers in Michigan, Ohio and Indiana.

What's next for real estate? With changes to credit tightening, a huge number of buyers will be unable to purchase a home. Some 15% or 900,000 US home buyers have been taken off the market. Consequentially, many people still need to sell their homes. In some areas inventories have risen to 12, 18 and even 24 months. Accompanying this will be more foreclosures.

In the next 12-18 months, over 2 million homeowners will be faced with their Adjustable Rate Mortgages (ARMs) resetting. Many will see payment increases anywhere from 30-100%. And yes, you guessed it, even more foreclosures.

Over the next 12 months. folks will be exiting the real estate industry en mass. If you decide to stick it out you could actually experience a 50% drop in your productivity over the next year. However, it doesn't have to be that way. Opportunities abound. I've spoken with several realtors who have revisited their business plan for 2007. You must be proactive, decisive, have a clear vision and a solid plan. Don't become overly discouraged by what you hear; get tough, busy, serious about your business.

Partnerships will be critical to your future success. Cultivating key referral sources are vital. Align yourself with a mortgage lender who knows the mortgage industry, the real estate market, and who is genuinely interested in helping you grow your business (not merely in closing the business you send them). Get with someone who knows their "stuff" and a solid company that will be around for years to come.

Depending on your attitude, these could prove to be the "best of times" rather than the worst of times. "When you see blood on the streets, then is the time to buy" was the saying during the great depression. So don't jump- hold on tight! The Mortgage Meltdown of 2007 is gonna be one freakish ride but when it's over you will be certain to prevail as the winner that you already are.