TNR - February 2013 Real Estate Edition

TheNicheReport.com

Real estate agent & broker Edition

For the serious real estate professional

Issue 014/February 2013

Who Built the World's Largest Real Estate Coaching & Training Organization?

And The Nucleus of Every Sale

Page 16

8

Crowdfunding Real Estate A New Era of Real Estate Financing

21

411 vs 911 For Brokers

23

New Ways to Sell Real Estate An International Perspective

32

New Bank Standards May Tighten Screws on Lending Until 2015

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CONTENTS

16

Issue 14

February 2013

Publishers Robert Pegg robert@thenichereport.com

Mike Ferry and the Nucleus of Every Sale

David Pegg david@thenichereport.com

by Rick Roque

MANAGING EDITOR Rick Roque Rick@thenichereport.com

Associate Editor Cathy Johnson info@thenichereport.com

ACCOUNTING MANAGER Shawna Ingram shawna@thenichereport.com

8 Crowdfunding Real Estate

32

Elizabeth Smith kulik A new era of real estate financing.

21 411 vs 911 For Brokers 38 Ways to Sell Real 23 New Estate tami bonnell

boom rizal An international perspective.

Contracting 26 Specialty Services Get a Boost From Hurricane Sandy tim Snyder Accepting the reality of extreme weather.

Guest Blogging is 28 Why so Important to Your Real Estate Business Daniel Adetunji

Advertising Director Jessica Grizzle

New Bank Standards

Jessica@thenichereport.com

Corey Curwick Dutton May tighten screws on lending until 2015.

Advertising sales

Home Builders Trend Toward Visual Social Media Adam Packard The world of real estate listings has certainly come a long way.

DEPARTMENTS

06 12 33 35

note from the Editor Market update & analysis service provider classifieds Advertiser DIRECTORY

Hilary Bateman hilary@thenichereport.com

Production Manager Henry Suchman henry@thenichereport.com

Production Assistant Dawn Exner dawn@thenichereport.com

Cartoonist Martin Bradford

COLUMNISTS & Contributing Authors Daniel Adetunji Tami Bonnell Corey Curwick Dutton Elizabeth Smith Kulik Adam Packard Boom Rizal Tim Snyder TheNicheReport.com

5

note from the Editor

Real estate agent & broker Edition

Summer is here – at least it is in Real Estate! The temperature in International Falls, Minnesota is -35F. Yes, it is cold there and just about everywhere across the U.S. So this means the real estate market is down, right? We are all aware of the seasonality of our business, and during this time we take long weekends and simply enjoy the holidays while planning our February vacation with our families. It is wintertime, and people – other than in the ‘sand states’ – simply do not buy, sell or move unless they have to.

This is our experience, right? Well, not in 2013. Home sales are set to keep marching upward as we fight to keep warm during this particularly cold winter. I sit in Detroit, Michigan while it is -3F, heading to Milwaukee, Wisconsin where it is a blistery -10F. I suppose I’ll be warming myself with Wisconsin beer and cheese curds as I reflect on the housing market and its recovery. Existing home sales for the year rose nearly 10% according to NAR, and the housing market is finally contributing to our GDP as a country. “Over the last several years, the housing market has been a factor that has weighed down the economic growth of our economy,” says Mark Zandi, chief economist of Moody’s Analytics. “Housing will be approximately 1/5 of our economy in 2013 – which is a good thing as it recovers. In years past, housing subtracted more than 1 percentage point from the GDP growth and it depressed virtually every sector tied to the sales and purchasing of homes.”

So, how do you tackle the market? Where is this housing activity principally, and who is buying in today’s creditchallenged environment? We have interviewed the legendary Real Estate expert, coach and trainer, Mike Ferry, to discuss these very issues. Mike is a ‘back-to-basics’ type of professional, and who should argue with him? For a man who started in real estate in the late 1960’s and has weathered several cycles, and amidst of this, grew a $50 million dollar sales practice on real estate, I wouldn’t bet against him. As a housing professional myself, I hung onto every word.

Everyone in their private or public life is in Sales. In my experience, regardless of industry, there are fundamentals within the sales profession that are foundational to human interaction. Whenever there is a transfer of value, along with an articulated overview of the value of what is being presented, you have entered the sales arena. Everyone is in sales. These fundamentals are most notably reflected in relationships. If you have a spouse, you know exactly what I am talking about. You are selling every single day. And if you skip the appropriate steps in the sales process, you get a ‘no’ – plain and simple. The sales stages are largely the same regardless of industry; however each industry nuances each step differently depending on the sale’s size and type or relationship. The time of progression from one step to another may vary, but it is important to never miss a step. While I was talking to Mike I was reminded of a time I made this mistake once (or twice) with my wife, and it wasn’t pretty. So, never skip the steps in all facets of your life – Mike’s strategies are timeless.

Speak to Your Company or at Your Conference: Remember, if you want to learn more about what we are doing, email or call me (408.914.5895) and I’ll jump on a plane and come visit with your real estate team! Thank you and I look forward to your hearing from you!

Rick Roque Managing Editor

6

February 2013

Official

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Crowd Funding Real Estate A new era of real estate financing

By Elizabeth Smith Kulik

S

eptember 14, 2010 marked the 50th anniversary of Real Estate Investment Trusts in the U.S. For the first time, REITs brought the benefits of commercial real estate to the average investor.

Since then, investors have risen to the opportunity and today U.S. REITs constitute a more than $300 billion equity market, with an average daily trading volume of about $4 billion.

Globally, REITs and listed property companies constitute more than a $700 billion industry, making listed REITs and the real estate investment universe collectively a more than $1 trillion market.

However, with crowdfunding now on the scene, many are wondering if crowdfunding could actually be the new REIT. Some industry experts think it could be, as crowdfunding is a powerful means of accessing social capital for businesses, philanthropy and personal projects, and that can certainly involve real estate. Where REITs gave the average investor the opportunity to invest remotely in real estate as an amorphous asset class, 8

February 2013

crowdfunding brings the opportunity to invest in local assets and enterprises directly to the people who are most interested in their long-term success – stakeholders in the surrounding community.

Crowdfunding allows social and business entrepreneurs to access funding online directly from donors and investors. Currently, donations, rewards, and lending-based crowdfunding are legal in the U.S. for virtually any kind of project, with no upwards cap on what can be crowdfunded.

The JOBS Act legalized equity-based crowdfunding, but the SEC is still currently defining rules. As of now, equity fundraisers will have raised ceilings of $1m-2m/year/entity, while investors can be accredited and non-accredited, according to their income and net worth over a prior 12-month period.

Interestingly, crowdfunding is unique in that it gives a voice to a new set of stakeholders who desire more than just financial returns. With crowdfunding, investors and donors not only consider traditional return models of sale, refinancing and distribution, but they are also driven by the desire to be part of a greater cause. The feeling of participating in crowdfunding a community building, a

new hospital for children, a local farmer’s market facility, or the satisfaction of just being involved in supporting local enterprises are some of the new reasons the crowd will invest in business ideas and innovative real estate projects.

Moreover, crowdfunding is already taking hold as a means of financing startups in the real estate supply chain, including alternative and solar energy, green buildings, materials and technology and service companies.

While crowdfunding may not be for all real estate endeavors, it certainly seems to be a match for certain kinds of real estate, especially public, neighborhood and pre-institutional projects. Consider four primarily realestate-driven scenarios: a) community development, b) leasehold, c) development projects, and d) acquisitions.

For communities, crowdfunding is a serious win using donation-rewards.

Non-profit organizations can crowdfund donationrewards with no upward cap for any kind of project.

This is an amazing opportunity for people who live in a community to participate in making it come to life.

Government projects that benefit the community are a match as well. Consider building a playground funded by the people who will use it, and their friends, and so on.

Take crowdfunding a step further to include infrastructure.

Donation-rewards is an opportunity to contribute to the development of important public spaces.

For leasehold, crowdfunding is an enterprise financing tool that leads to real estate.

Crowdfunding for businesses is an enterprise financing mechanism with funds being used for either specific initiatives or general operations. Consider a local bakery crowdfunding the next stage of its growth, including graduating from the home kitchen. As with every business, real estate will be an important decision in operating a fledgling business, along with deciding to fund it in part from a crowdfunded capital injection. Investing in and donating to enterprises where real estate plays an important part in the success of the business is an opportunity to help the businesses that are the backbone of sustainable communities get started and to prepare for future growth.

For development and acquisitions, the JOBS Act may be the game changer.

Financing specific development activities with donation-rewards-based crowdfunding could work as well as crowdfunding for any project. The question is, does the developer have a compelling project that has public interest

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and benefit? However, the JOBS Act brings in several new changes that are suited for complex transactions that could dramatically affect the real estate capital markets landscape.

Title III of the JOBS Act opens equity crowdfunding for investable enterprises. This could be a very important stimulant for local real estate investment segments that are below the institutional radar. Entrepreneurs can crowdsource between $1m-$2m a year, making crowdfunding equity for real estate deals sized between $1m-20m a real possibility for capital formation on projects that deliver cash flow and returns from long-term holds.

Another important JOBS Act benefit is the change under Title IV to Regulation A exemptions which raises the threshold for funds being raised with the exemption from $5m to $50m. Developers who own their properties will be able to go to the crowd to capitalize their projects through this little-used exemption. In addition, Title II of the JOBS Act could unlock significant capital for real estate fund investment. Title II – Access to Capital for Job Creators – lifts the 78-year old ban on "general solicitation" and "general advertising" by private equity funds, hedge funds and other entities tapping the private capital markets.

This is all potentially game changing. No longer tied to the definition of pre-existing and substantive relationship with investors, alternative asset managers raising capital in the private markets will able to communicate with the general public – via websites, press releases, interviews with the media, etc. – to raise awareness and funds. This new regulatory framework is a unique opportunity for alternative asset managers to approach accredited investors with a completely different value proposition, and more effectively position and market themselves to key external audiences. This is a regulatory environment that has the potential to foster formation of new funds with specific missions to invest in responsible community development.

Another avenue opening more prominently with the

JOBS Act not related to crowdfunding is EB-5 financing, where foreign investors invest between $500k-$1m and receive a green card. Projects must prove a threshold jobcreation/EB-5 unit and be registered with Regional Centers as designated projects.

Of course, while crowdfunding definitely adds an innovative and unique financing approach to the mix, it does not do away with traditional financing options for real estate projects – especially large-scale commercial projects. However, through social media technology and crowdfunding techniques, costs for key phases of large commercial real estate projects could be covered. For example, raising capital for a feasibility study, architecture plan, leasing and marketing plan, or even down payments and rent for a building, are all very doable in the crowdfunding space. However, construction loans and/or other investment sources may still be needed for covering large commercial projects in more traditional ways. In this case, crowdfunding should be viewed as part of your funding portfolio, but not necessarily your only resource.

Obviously, the marriage between high-tech and traditional finance is presenting a paradigm shift in raising capital, while also ushering us into a new era of how to do business in the real estate world.

Elizabeth Smith Kulik is the founder and CEO of ProHatch, a crowdfunding organization that specializes in promoting expertise and education to the emerging crowdfunding sector. The company’s executive team has extensive experience in creating large-scale real estate value for domestic and global entities. In addition, ProHatch has a unique Phase-to-Raise TM Crowdfunding process, which delivers a high level of social transparency and accountability between entrepreneurs and investors. ProHatch is working to partner with entrepreneurs, start-ups, SMBs and communities to optimize their financial and business goals.

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Market Conditions and Analysis

market Conditions and Analysis By rick roque

Market Details in the Middle of the First Quarter 2013 To Begin the Year: Real Estate Market Booms Market Highlights To begin the year, the early numbers reflect an earlier-thanexpected boom of business for Realtors. In this business, no one moves or buys a home between Thanksgiving and Valentine’s Day – right? Well, not exactly – and if these unseasonal numbers are reflective of a new normal, the work week for Realtors just got longer.

So, what does this mean for your business, and how is this shift affecting consumer behavior while home shoppers look for deals?

The data behind these trends reflect a growing trend that more shoppers are looking for great buys.

This is affecting all business entities throughout the housing market chain – from appraisal management 12

February 2013

companies, to Realtors, to mortgage companies. This places a significant demand on a market that has seen many of its employees leave and look for work in other markets. Ask any mortgage company how hard it is to find underwriters. So what is driving the rush? A fear of rising rates and the possibility of rising home prices drove borrowers to shop for homes this holiday season – and this is great news for real estate agents across the United States, especially in what I consider tier-2 markets such as Pittsburg, Pennsylvania; Columbus, Ohio; Springfield, Massachusetts; and Milwaukee, Wisconsin.

Zillow and NAR reflect that over 42% of all borrowers identify the internet as the source for the home they purchased, and these numbers are reinforced as Coldwell Banker’s website was up 38 percent in the month of January as compared to previous month’s levels. Zillow reveals that over 13% of real estate shoppers use mobile applications (other than desktop search) with over 35 million visitors monthly to their site. This

generates over 1 million loan inquiries (monthly) that get distributed through their mortgage marketplace.

Not only are these numbers staggering – they are on the rise. To support this further, ZipRealty, an online brokerage based in Emeryville, California, reports that its website has seen an unusual 33 percent increase in home shoppers in the first half of January compared with December.

A competitor of Zillow, Redfin also based in Seattle, received the same bump in home tours and website visitors in December by 26 percent as compared to the four-week average.

Something is driving this and, once again, the volume of strong deals coupled with the rate environment is driving the interest on the part of credit worthy borrowers.

NAR reported that houses listed for sale in more than 55 percent of the markets received more traffic than in previous months, or in the same month in the previous year.

This activity will resonate in the marketplace and will lead to a stronger than usual first quarter for real estate

Market Conditions and Analysis agencies and mortgage lenders around the United States.

Do you think this trend is isolated to hot weather states like the South or South West? No. Joe Petrowsky, president of Right Trac Financing Group, a mortgage company near Hartford, Connecticut, says he has received a much higher volume of requests for "preapproval" letters — which tell sellers that a purchaser is qualified for a mortgage loan — compared with what's typical at this time of year.

"I'm seeing twice as many buyers this January as last January," Petrowsky said in an interview.

"People have finally figured out that prices are moving up, interest rates are really low, and they don't want to miss out on the opportunity."

Long & Foster Real Estate, the country’s largest independent brokerage firm, reported strong signs that spring is upon us in the housing market. Stronger than usual home sales signs are reflecting multiple buyers competing for the same home, which either sustains the purchase price or makes it increase. In many cases, the sale price increases above the asking price, which reflects stronger than usual demand.

“Purchase contracts started to rise just before Christmas, which is highly unusual,” says Gretchen Castorina from Allen Tate, a firm based in North Carolina. Multiple bids and new clients have become the new landscape.

Many investors are entering the marketplace, which is increasing the all-cash transactions; this is reviewed in greater detail below. Simi Valley Real Estate, just outside Los Angeles, says for a variety of reasons in December and in early January, the

combination of a rise in tax rates and the fiscal cliff debate, coupled with the rates in the mortgage market, it is a perfect storm for investors to take advantage of the best housing market since before the housing boom.

Polling by Fannie Mae, the government-backed mortgage investor, may shed some light on what's motivating buyers. In a survey of 1,002 adults in December, Fannie found the highest share of consumers in the survey's 2½ year history who expect home prices to rise during the coming 12 months. Forty-three percent expect mortgage rates to jump, and 49 percent believe the cost of renting will increase.

Roll all this together, says Doug Duncan, Fannie's chief economist, and you can see why consumer sentiment "could incentivize those waiting on the sidelines … to buy a home sooner rather than later" — pushing spring behavior into midwinter.

What's missing from this equation? More owners listing their homes for sale. Inventories of available homes are down in most markets, mainly because many sellers are under the impression that it's still a buyer's market filled with smart buyers looking to buy homes significantly lower than market value.

The investment appetite driving the market has been the story in 2013 and has debunked the myth of the seasonality of the housing market, providing a consistent stream of business for companies throughout the year.

Do Homes Sell in the Winter?

You betcha.

Referring back to the good people in Minnesota and Wisconsin,

are homes selling in the winter?

You betcha! As mentioned before, the strong buying occurring in the marketplace is forcing real estate companies to take different approaches to the marketplace than in typical years. This effect alters sales and marketing strategies of borrowers, and most importantly, it impacts specifically who you are marketing to as the buyer has changed significantly.

It is worth going into this in more detail so as you reposition your organizations to take advantage of this trend, you can benefit your team and, most importantly, your clients.

Between December and February each year, according to NAR, the average existing home sales during these months last year was approximately 4.5 million; this number is expected to be significantly higher for the aforementioned reasons. So, the housing volume is there, in your marketplace, and someone serves these clients – it may as well be your team.

"The real estate marketplace is open and active year-round," said Wendy Forsythe, executive vice president with Atlantic & Pacific Real Estate, a full-service brokerage firm operating in more than 20 states.

"In a mobile society there are always people ready to buy and sell."

But what about in the winter states?

At least for 2013, the market in the winter states will be very strong, and given the fed involvement in controlling the monetary policy, it will keep rates low and homes selling. Here are a few more reasons pertaining to the mortgage and housing market: First, did I say mortgage rates TheNicheReport.com

13

were at historic lows? I should say this another five times in this article.

"Mortgage rates started the year near record lows, which should continue to aid the ongoing housing recovery," said Frank Nothaft, Freddie Mac’s chief economist.

Second, home prices in many markets have begun to rebound.

According to the National Association of Realtors, existing home prices in November were 10.1 percent higher than a year earlier. For homebuyers waiting for the market to reach bottom, these price increases are a signal that it's time to start looking for a home again.

But while prices are generally rising, it's also true that for the most part they remain below the highs seen in 2007, which means there is significant room for appreciation over the next 5-7 years. For a couple in their mid-40’s or mid-50’s, buying a second home could be the best housing opportunity available to them. Also, given low rates, a mortgage payment is significantly lower than the cost to rent.

Third, there is plenty of demand and the inventory remains high.

"Household formation is growing for the first time in several years, rental occupancy rates are at all-time highs, and everyone needs a place to live," said Forsythe. "Many people who ran into tough economic times several years ago are again looking at real estate ownership. Enough time has passed so that many of these individuals have rebuilt credit, built up their savings and now qualify for FHA, VA and conventional financing."

Fourth, large numbers of distressed properties remain available for purchase. Short sales and 14

February 2013

foreclosures represented 22 percent of all existing home sales in November.

According to NAR such properties typically sold with a deep discount – 20 percent for foreclosures and 16 percent for short sales.

Forsythe noted, "Foreclosures and short sales continue to remain available in significant numbers, meaning that many buyers still have access to a large array of local properties at discount prices."

The Customer Is Changing We traditionally associate linen sales with January, new car clearances with August and holiday markdowns with late December – but in real estate there tends to be more marketplace balance year-round. It is true that there are fewer home sales during the winter, but it is also true that there are fewer buyers. Without such a supply-and-demand balance, home prices would be expected to plummet every February 15th, or January might be the month associated with two-for-one real estate sales. Such annual events, of course, do not happen.

Part of the reason for year-round real estate marketing is that household dynamics have changed. The greater volume of real estate sales traditionally seen in the summer was associated with the desire of parents to get children into classes at the start of a new school year. But now households with children are a smaller part of the mix. Demographer William Frey with the Brookings Institution says that over 80 percent of all households in the U.S. do not include children.

And given the aging makeup of buyers today, those qualifying are baby boomers and empty nesters, not families with children.

"The changing composition of our households impacts the real estate marketplace," Forsythe observed.

"The Census Bureau says people are marrying later and household size has declined. One result is that household moving schedules are less tied to school terms."

Put it all together – rising rentals, demographic changes, tax preferences, low mortgage rates plus the availability of distressed homes – and it comes as little surprise that the real estate marketplace is open for business year-round. So, don’t talk yourself out of a sale or take an extended vacation in February or March waiting for the business – because the business is there waiting for you.

More Homes Are Owned Outright Related to the discussion of the changing demographic of the buyer, over 20.6 million people own homes outright, which means over 21 million homeowners have no mortgage on their homes, reported Zillow. This is great news for agents who are looking to move transactions quickly, but bad news for mortgage companies as their services aren’t needed. Transunion LLC supported this report from Zillow indicating that over 21 million Americans representing nearly 30 percent of homeowners own their homes free and clear of a mortgage.

Some of the metro areas with the largest ownership percentage are: City Ownership Percentage Pittsburgh 38.6% Tampa 33.2 % New York 29.7% Cleveland 29.4% Miami 28.9%

This is compared to the cities that rank among the lowest percentage of owning a mortgage free and clear – Washington D.C. (15.5%), Atlanta (17.7%), Las Vegas (18.3%), Denver (18.5%) and Charlotte (20%).

“Homeowners unencumbered by a mortgage may be more flexible than indebted homeowners, and therefore more apt or willing to list their homes or enter the market for a new property,” said Zillow Chief Economist Stan Humphries. “By determining where these homeowners are located, we can also gain insight into potential inventory and demand in those areas."

The survey showed areas with lower home values generally have higher outright homeownership rates,

as smaller loan amounts are easier to pay back more quickly.

Demographic factors, including the age and credit rating of primary borrowers, also influence free-andclear homeownership rates. Zillow reported 65- to 74-year-olds are most likely to be free and clear (20.5 percent), followed by 74- to 84-year-olds (17.9 percent). “This is attributed to the fact that the longer someone owns a home, the longer they have to pay off their mortgage,” the report said. However, the survey also noted that 34.5 percent of 20- to 24-year-old homeowners are also free of mortgages.

Among homeowners who own their homes outright, 44 percent have a high credit rating, between

800 and 900, while 15.5 percent of homeowners have the highest credit rating, 900-990.

This represents a strong strategic advantage for real estate brokers who specifically target baby boomers, second property investors and retirees.

This is the demographic who have the money to buy today – not the first-time homebuyer with a baby on the way. The market has changed significantly, and as it changes, it is important that you adjust your sales and marketing strategy accordingly.

Any questions or feedback on this article, email Rick Roque, Managing Editor of The NicheReport Real Estate Edition, at rroque@thenichereport.com or call him at 408.914.5895.

How we see it

TheNicheReport.com

15

2013 Interview Series

Who Built the World’s Largest Real Estate Coaching & Training Organization?

Mike Ferry and the Nucleus of Every Sale by rick roque Mike Ferry is the founder of The Mike Ferry Organization, the leading Real Estate Coaching and Training Company. If you are like me, a successful Generation X’r who has carved his own way, I had never heard of Mike. I am considered by many a housing and real estate “expert” and I had never come across him. I never felt more like a student in a teacher’s classroom as I did during my discussion with Mike. Humble, smart, proven, successful and a creator of a sustainable organization that replicates his strategies throughout North America and soon, Europe and Australia, Mike’s sales strategies are so simple, they are ingenious. They are the sales strategies that everyone knows are important but few actually use. In my view, they are the simple lessons in life, but as we grow older we get complacent, lazy, arrogant and apathetic.

Mike has been on top of the sales and management world for over 40 years. His reputation is pristine and it translates to the number of agents and brokerage firms he is associated with. He built this on a foundation of hard work, dedication, focus, personal goals and knowledge of how to translate a sales process to support the highest level of customer service.

From a sharp kid in his early 20’s, Mike’s relentless work ethic was launched with Nightingale-Conant where he was the National Training Director responsible for sales activities of over 1,300 people. Leveraging this, he applied these sales strategies to the Real Estate field and

started his own company to service a need, to help produce more effective sales professionals in the business – and this was in the late 1960’s. Four decades and eight presidents later, Mike had demonstrated he has not only longevity, but also results that reflect this.

Who can argue with Mike Ferry today? His organization is a $50,000,000 company – yes, that is millions, with tens of thousands of clients across North America. He personifies the mentoring that can only come from a senior statesman or a grandfather. His phenomenal natural ability to teach and mentor his original techniques has helped countless agents achieve and exceed their personal and business goals. The way he inspires all his clients – whether in their first or fiftieth year of Real Estate – to produce at high levels and apply the rules of business to their careers is legendary.

Mike is recognized by NAR and his thousands of clients as the authority in sales strategies within the Real Estate profession. He has a unique combination of tactical strategies interwoven with a call to the human heart.

Ultimately, the results and how we achieve them are a reflection of who we are and our motivation. Mike nails this unique blend into a tactical series of sales strategies that are guaranteed to produce results. Mike and his company lead dozens of seminars and retreats every year.

Mike is an inspiration whose influence assists real estate professionals in very concrete ways that have helped agents and brokers improve their performance.

Mike’s story is a perfect one that reflects how close any one of us could be to success. It is always one decision away, 20 seconds of courage and some ostensibly unimportant factors that later become life’s pivot point.

That is the subtlety of success. Frequently, we are so close and yet we do not know it; we are blindfolded in our business lives, often operating in the dark as to what the future may (or may not) hold. But those like Mike who have succeeded through the passion of their own convictions have pressed forward regardless of the competition and market conditions.

Where did you grow up, and why do you love the industry?

Mike Ferry: I grew up in Southern California; I was a local Orange County person – go to work for a real estate brokerage firm – small, local, opinionated and tough real estate broker. It wasn't easy. We had a very hard-core, disciplined approach to the business. I had to make phone

calls, set up appointments, practice our sales pitch. To put it simply, I was forced at an early age to prospect and practice presentations in front of my peers, and the expectation when I left the office was to come back with listings. From there, I transitioned over to Chicago to be with the legendary Earl Nightingale – who really is the founder of the motivational industry. He had enormous influence on me and the world of sales, self-development, and success achievement. I was with him for over four years – now you have to remember, this was in the late 1960’s, from 1967-1971.

How did you get connected with Earl?

Mike Ferry: It was a cold call really; I happened to be at the front door and a sales rep came in and provided me with a motivational program called "Lead the Field." I was so excited about it – and of course, because I listened to it over and over again, I started referring this sales rep to all of the local Realtors. About 90 days later, he handed me a check for $3-$4K for the successful referrals – he was so impressed with the quality of the referrals and with my enthusiasm. You have to remember, this was a lot of money back then. I was just doing something I believed in, and that was to provide this sales rep with some leads.

To have him reciprocate like this was astounding; I was so impressed.

Our relationship evolved so quickly and successfully that he asked me to work with him to sell Earl's material.

Before I knew it, we were the highest-selling region in the United States. Within four to five months, after successful selling, Earl called me directly wanting to meet me. Earl wanted me to come to Chicago to train the sales staff there.

For several years I commuted to Chicago at the ripe age of 21 – I took a risk but I was young enough to do it.

By the time I was 26 years old, I had a strong foundation – strong mental habits for success in the field of selling. Not too many people have this today, but I was fortunate to have a series of mentors that provided me with strong opportunities. As a result of this, I developed strong leadership skills at a young age.

Tell me about Earl.

Mike Ferry: He built a business based on a simple proposition: you become what you think about most of the time. Earl must be the largest provider of motivational material in the U.S. today.

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If I think I can become a great sales person, as I learn more I can become great. This is human behavior. We need to define success for ourselves and go after that. I came to define success in this way: Definition of Success: A progressive realization of a worthwhile goal and objective.

I have always been more of a de-motivational speaker because I tend to tell people the reality of what it takes to succeed as compared to what they are doing; with this approach, many people get turned off. For those who want to succeed you have to confront those habits that are undermining your success. That is the key.

While working with Earl I was introduced to Mike Vance, a high executive of Disney Corporation.

So, we were meeting in Chicago – and he too became a mentor. Michael spoke on the topic of creative thinking – outside the box – to accomplish more, certainly a hallmark for Disney.

That relationship led to Dr. Gunther Klaus, one of the top management consultants in the world at the time.

When I left the real estate business – when I started a motivational sales career – I was able to succeed, always able to find people brighter, smarter, richer, etc. than I was.

Here are a few more people: Larry Wilson, Wilson Learning Institute in Minneapolis Chris Hagerty These were THE people at the time, and I was connected to all of them, one at a time.

So, you stand on the shoulders of giants; good for you, and smart to do this. At what point did you realize you were more the Mentor versus the Mentee?

Mike Ferry: I was 30 years old, I was asked to teach my sales people how to teach real estate agents to do a half-day seminar for $500 – to teach them what I have learned and what I am doing. After the seminar, it occurred to me this is exactly what I was meant to do.

It was June of 1975 – I started my company the next day. I said, I am going to follow Earl Nightingale and focus on the real estate field. I was driving to Orange County; this focus and inspiration came to me and I started the company.

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February 2013

Why the real estate market?

Mike Ferry: There were only a few people out there – Tom Hopkins, a great friend – but I didn't accept his tips to build an effective real estate career. I have a methodology and I believe it is the right thing for the Real Estate industry.

How were you growing your business?

Mike Ferry: I called for 5 days (25 brokers per day) and asked them to hire me to speak to their agents. I did this for three years. I was disciplined and persistent.

Then it was a mix of luck and chance that I got to know the founder of Century 21, and then I grew with my relationship with them. I spoke at many of their conferences and offices and I grew my career from there.

In late 1989, after 5 years of focusing on growing my business in seminars, I went from being hired to hiring myself to grow my own business and then on to coaching.

It was a progression that still works today.

How do you move people who are too apathetic to be hungry?

Mike Ferry: The apathy in real estate agents today is very high. They are uninspired, they have no hope; they don't understand the market; the number of transactions has dropped. There is every excuse out there for people not to be successful, but in today’s market, there is every reason to BE successful as well.

So, to get them inspired or hungry again? You can expose them to new ideas. Should they choose to accept them, they can build a better business. Motivation is internal. Once they understand that they can grow from there, the sales strategies fall right into place. The goal is to get them to establish solid thoughts to build upon that internal motivation. Most of my audiences, 7075% of them, I get a blank stare, uncertain if they can do something of consequence or meaningful in their lives.

That is the bridge to help them cross in their own lives.

A life of doubt and lack of clarity of their goals is what plagues most real estate agents.

What process do you deploy to tap people into an internal motivation?

Mike Ferry: Motivation is action – motive through action. Unless they know specifically what to do, how to do it and what to say to make it happen, people are largely

lost. They need a formula, a paradigm or a guide.

Let’s look at some actions you need to take, to take action to get a contract signed. I articulate a strategy – things to say. I am very specific. These tactics are rooted in that basic motivation and desire.

I see real estate agents in the following way: • 5-10% of the people have a desire to accomplish a lot • 90%-95% need to develop this but they need to learn to what to say and do.

My job is to find those people who have a desire to make something of their personal and professional lives.

Tell me about the Mike Ferry Organization and the market today Mike Ferry: The real estate industry today is better than ever. The apathy is high – there may be 1.2M Realtors, but only a small percentage understand the business – so the apathy works in the favor of those who want to succeed.

The pent-up demand is unfolding in front of us – the desire for people to move up, to relocate, to do something unique and make it happen for their business. The real estate industry is the key factor to what runs the economy, so real estate agents have an important role in our

economic recovery. You see, this is the point: to overcome the apathy, tap into that internal motivation, to define clear goals and to go after them in a systemic manner.

Therefore, all real estate agents should say to themselves: I am an important part of the economy – am I doing my job right? We can dramatically change the real estate economy. I see a great economy ahead of us – whether or not success is realized is up to each agent.

What is your secret sauce?

Mike Ferry: I have a system that highlights a number of important sales disciplines. A few are: • • • • • • • • •

manage your team learn how to prospect do good lead follow up be strong in the pre-qualifying process make strong presentations handle objections close the sale negotiate start all over again

Agents do a 90-day production plan – if you do these activities every day, if you are true to the plan, you will succeed.

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What do you think a system does for the agent?

Mike Ferry: If you don't know what to say or do, your chance for success is limited.

How successful are you?

Mike Ferry: We have about 80,000 real estate agent customers. We work with about 350 broker owners.

We no longer affiliate closely with NAR, but we did for years. I am a strong supporter of our industry and its leaders.

We provide seminars, retreats, coaching – we offer the same thing in Canada, Europe.

We are having a lot of success in Europe; people are hungry. Success is success – that internal desire crosses borders. It doesn't matter about the culture – there is always a percentage of the people who want to succeed.

The truth is, the basics work in a good and bad market. I think the worse the market, the more hungry people are. You can build any type of business. The industry in real estate is built on magic formulas, magic systems – do this today and you can be rich, etc. These are gimmicks, not authentic sales systems.

I have proven, in the last 38 years, you will succeed at a high level, period, if you follow my steps; but it is hard – it requires discipline and training. Not everyone wants to hear that, and people will attend my seminars, move away to try out one of the gimmicks, and more often than not 20

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they come back to the Mike Ferry organization because they recognize our authenticity and the merits of what we offer versus the other offerings in the marketplace today.

Every business that is successful is built on common principles. All of my competition are teaching the magic pills. Everyone tries them and they come back to me – because they know they need substance.

The reason why I am able to continue is because I believe what I am telling you is so strong.

Gravity has a way to correct behavior.

How many conferences do you do each year?

Mike Ferry: We do 35-40 sales conferences per year. I do the three to four biggest ones, and I am consultant to my own company.

Smaller events: 200-400 people; the larger events, 2,500-5,000 people.

What do you want your legacy to be?

Mike Ferry: If someone says “Mike Ferry,” and they say, “He made a difference.”

I believe that we do make a big difference every day.

Mr. Rick Roque, Managing Editor. For comments email me at: rroque@thenichereport.com or call me at 408.914.5895.

411 vs 911 for Brokers by tami bonnell

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ecently I attended a class to recertify my life-saving skills, partly because of my involvement in martial arts and partly because I think it’s an important skill to have as a good citizen. I recertify every couple of years to stay abreast of new technology and information (or “411”) in the event I can help to prevent an emergency (or “911”).

The first question we were asked was, “What kind of lifesaving do you want to learn, i.e., do you want to save an adult, a child or an infant?” I was given the choice because if I worked in a store, for example, I would only be required to save adults. If I worked in childcare, I would have to be certified to save children. I said I wanted to save them all! Then they asked if I wanted to learn how to use the defibrillator machine. They explained that if I had that skill, my chances of being able to save someone’s life over using mouth-to-mouth resuscitation alone increased from 4% to 44%. I was surprised to see that at least half of the class didn’t bother with the extra training, citing excuses such as, “I don’t have a defibrillator at my company, I don’t need to

know.” I wondered, “Wouldn’t you want to know in case you were running through an airport and you could save someone’s life by grabbing the machine?” I was one of only four people in the class who took all of the teaching offered.

This experience got me thinking about the parallel with real estate. I realized that while real estate broker/owners have expertise in the area of real estate, many would be better equipped to serve the community if they learned more about mortgages, appraisals, home inspections, insurance, demographics, etc. The more 411 they have, the better equipped they are to avoid a 911.

This works in business planning too. Information on what’s selling in your market, the average sales price, etc. is readily available but many broker/owners aren’t using it.

From that you can determine where the market is headed, where the buyers and sellers are and how you should be marketing to them.

It’s important to pay attention to the 30,000-foot view, the 2,000-foot view, and the street-level view and, of course, to pay attention to your own business. Create a picture of what you want your brokerage to be. Do you want a boutique office or do you want to build it big? What sort of image do you want your brokerage to have in the TheNicheReport.com

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community? This is important to know from a recruiting standpoint. Compile a list of agents who would be a good fit with your office and gather the 411 by Googling them, Friending them on Facebook, connecting with them on LinkedIn and getting to know as much as you possibly can about them. If and when they do join your organization, be sure to share your vision with them. Give them the 411 so they can really feel like they are part of something great.

As a broker/owner, in order to avoid a future 911, you must consider your exit strategy. Do you want to continue what you’re doing for another five years? Have you clarified your own transition plan? Do you want to pass down your company to your children or do you want to build a saleable entity? Do you want to pass down the wisdom you’ve gained to others? It’s important to consider these questions and solidify your goals so you make the right decisions on the road to achieving them.

If your strategy includes transitioning out of ownership, you should be looking for the next level of leadership now.

Who are you going to transition to? If you plan to transition to people you’re recruiting into your company now, you can impart your philosophy and teach them to love it and prepare them to take it to the next level.

We Want YOU! Write for The Niche Report magazine or blog.

Let your voice and knowledge be heard by writing for us. Tap into our huge audience of Real Estate agents & Brokers around the country.

Learn more by going to www.TheNicheReport.com/write-niche-report or call us at 866-964-2695

On the other hand, are you better off rolling your brokerage into another company? Do you need to sell right away so you get instant cash, or is it a better plan for you to get paid out over time? If you decide that getting paid out over time makes more sense, then you might actually be able to structure retirement income long-term. Consulting with trusted advisors such as your CPA will help you to gather the 411 you need to decide.

Speaking of retirement, we know that many people in the real estate industry don’t have a retirement plan and even fewer have put any money aside. Making preparations now will help avoid a 911 in the future. A lot of people are working because they have to, not because they choose to. And a lot of them are working harder than they’ve ever worked in their life. It’s one thing to do that if you’re really passionate about it, but many broker/owners have lost their passion to the recession.

It’s important to know that it’s never too late to start planning for retirement! It’s never too late to get all the 411 so that you can really get what you focus on, and the more detailed you are about it, the better. When I do this exercise, I sit down and I close my eyes, and I literally create pictures in my mind. I ask myself, Where do I want this company to be? Where do I want to be personally? Where do I see my health a year from now, three years from now, five years from now? The pictures that come vividly to my mind are the ones that are really true to me. The ones that aren’t as vivid are not really part of my dream. I create pictures for everything – health, family, friends, business, finances. I spend about a half an hour every quarter visualizing what I want for my life. Try it!

At the end of the day, as is the case with those of us who learned how to use the defibrillator that day, people who are better prepared are those most capable of reacting effectively in an emergency. And in your business, it’s all up to you.

Tami Bonnell is the CEO of EXIT Realty Corp.

International. She is a thirty-year veteran of the real estate industry and was instrumental in building three major brands.

Among her many achievements, she was recognized by real estate trend-watcher, Stefan Swanepoel, as one of the 100 Most Influential Women in Real Estate. Ms Bonnell is a frequent featured speaker at events such as the National Association of REALTORS® Convention to the Top 500 Power Brokers, The Women’s Council of REALTORS®, Inman News Connect Conference and she was named one of Banker & Tradesman’s 2012 Women of FIRE. She is a wife, mother of three and grandmother of three. In her spare time she is a martial artist, coach, judge and referee.

New Ways to Sell Real Estate An International Perspective

by Boom Rizal

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ccording to Forbes.com’s Real Estate Forecast 2013: The Housing Market, the real estate sector will be showing signs of improvement, however modest, after its significant and continuous drop in the past three years. Nevertheless, this improvement still lacks what the homeowners need to regain losses from the above-normal national rate of unsold properties (from 3 percent to 2.1 percent, in contrast to the normal rate of 1.5%), as well as vacancies from single-family housing and condo rentals (from 11%, now down to 8.6% as compared to the normal rate of 7 to 8 percent).

The expected recovery does deliver a sense of relief to property sellers and experts. However, with so many property vacancies in the market, no one can rely on a business’s stability alone to boost their profits and investment.

The existing competition to sell real estate still remains tough, and relying on one’s local real estate broker and agent alone is sometimes not enough to get people to go to your showings, much less to receive offers from them.

The best way to find the right buyers and stay ahead of the

competition is by using new methods of selling houses and condominiums.

Here are some new and creative ways of putting your property on the market.

Lure in with the unique and the attractive Will Csaklos and Susan Harrow were looking for a home in the city of San Rafael, California for a long time.

According Frontdoor.com, they found one only after seeing a house with its own garden. Without even considering its structure, the couple bought the property knowing that they could have a sanctuary in the middle of the city.

Homeowners must list every unique asset of their homes and then use them as the marketing bait for selling. These should make the house worth every potential buyer’s time to look into it and make it stand out from the rest in the market.

Use social media Social media’s uses can go beyond the obvious. npENGAGE.com has showed statistics indicating that more and more marketers who use Facebook have said that social media is “crucial” or “important” for their business ventures.

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most of their target markets are on Facebook and Twitter.

Moreover, information about a product can spread faster and more easily online. The question now is why should this strategy not be used to sell houses as well?

Creating online home viewings and property websites Launching property websites, showing videos, and virtual tours give people online access to a more interactive home-viewing experience.

The pioneers of The Hybrid Real Estate, Bryan and Kelly Ranstad, together with Mike Boyst, built the company based on a newly remodeled real estate management system, and now use “e-property”− a system that sells real estate through the web as well as through virtual showings on the Web. After capitalizing on the latest low-cost technological operations, the company was lauded by other property experts as a successful realty venture despite the economic odds against them in their first few years of launching, according to The Register-Guard.

In the Philippines, a country where real estate businesses are boosting despite worldwide financial instability, real estate

experts and private sellers have been catching up with their high-tech methods to sell real estate and profit from the country’s vast demand for housing. One housing developer, DMCI Homes, which was dubbed ‘The Ultimate Seat of Consumer Approval’ by Reader’s Digest Asia, also use virtual tours and other multimedia on their projects’ website to create an online “open house” experience for potential buyers.

Spreading the word Talking about a property both online and off the web is an effective way of attracting potential buyers. Facebook. com even says that recommendations from friends serve as the most powerful means of word-of mouth marketing despite the presence of online media marketing pursuits.

This means that proactively spreading the word about a house for sale cannot be ignored, as it definitely gives the seller more leverage among other competitors in the housing market.

A seller can naturally do this through simply telling his friends, neighbors, and other people he knows. He could also do this online by including links on his property web pages that allow the readers to recommend the site to friends.

Another great idea is adding the Facebook Like button to the pages, and encouraging friends to like your homeselling efforts on this social media platform. Besides getting a direct connection to your Facebook account, the readers post notices of them liking your website on their own page. This then allows other friends to read about it and informs them of the property in the market.

Considering home staging with house sitters Although staging a home is already a great way to bring a cozy atmosphere to the buyers, hiring house sitters encourages them to visualize moving into that house even more. It keeps the house from being too quiet and lonely despite its furnishings and brings a more lively and inviting atmosphere to prospective buyers during viewings.

Besides this, house sitters will also act as caretakers of one’s home if no one is occupying the property. They can look after its condition, pay utility bills, report defects and let in the owner’s contacts for selling the house while the owner is away. The only tip to keep in mind when doing this is to hire one that can live in the house neatly and without any pets.

Swapping homes The methods for swapping homes for vacations are now also working for home buying and selling. According to an article by the UK journalist Zoe Dare Hall for The Telegraph, home-swapping is very suitable for downsizers.

House preferences would also not be a problem. Phil Tennant from Hamptons International said in his interview for the article that if the other party likes the owner’s house, chances are that both of them would have similar tastes.

Sellers who are considering this option can get assistance from GoSwap.org or OnlineHouseTrading.com. They can also do a straight-swap with an interested buyer or negotiate a “part-exchange,� where vendors who want to move into a smaller house can accept additional payment together with the property itself.

Holding events at the property This waning real estate market has also triggered real estate professionals to turn to this unconventional way of inviting would-be homebuyers into their listed property, according to Rismedia.com.

One Realtor, Chris Rooney from Connecticut Prudential

Realty, said in his interview for the article that people in their company have been pushing themselves to be creative when selling real estate. Rooney once scheduled an art show featuring the artwork of Connecticut Photographer Nina Pomeroy alongside an open house to add some twist to the event.

Provided that an owner carefully chooses the events to host to avoid property damage risks, organizing such activities allows the property to get more exposure. Sellers can use the free spaces in their properties and turn them into event venues throughout the selling period, especially during open houses. This drives more traffic into the house and gives potential buyers more reasons to come to its viewings.

Just like in any other competition, the only way to stay ahead is to stand out from the competitors in this real estate business. The best way to do this is by being proactive and trying new innovative strategies for selling real estate.

Boom Rizal is the writer of betterjoys.com, a website focusing on real estate investment and advice. You could e-mail her at boomrizal@gmail.com or follow her at http://twitter.com/ boomrizal

Specialty contracting services get a boost from hurricane Sandy Accepting the reality of extreme weather By tim snyder

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rowth remains slow for home builders and home remodeling contractors.

But the major devastation caused by hurricane Sandy has proved to be a game changer for contractors who install generators, solar panels, sump pump systems and other features that help houses face extreme weather with more resiliency. Even as politicians and pundits continue to debate the role that human activity plays in climate change, homeowners in storm-prone areas are investing in improvements that make their houses storm ready. It’s interesting that some of these improvements are also considered “green” because they help houses reduce energy consumption or utilize renewable energy. Check out some of the more popular improvements, which are explained below.

Backup power systems. The gasoline shortages caused by flooding and power outages educated many homeowners about the limitations of portable, gas-powered generators. A homeowner who installs a permanent generator powered by propane or natural gas enjoys two important benefits: higher 26

February 2013

kilowatt capability to power more household devices, and freedom from gasoline shortages.

Other backup power systems are also drawing interest and generating revenue for enterprising contractors. Bruce Angeloszek, owner of CT Electrical Services, has installed backup battery systems for homeowners who can afford the luxury of an “indoor generator” that operates in complete silence. “We install a bank of specially designed, deep-cycle batteries that can be recharged by grid-supplied electricity, by a fuel-driven generator or by solar panels,” he explains. “It’s silent, there are no moving parts and you don’t have to worry about fuel,” Angeloszek continues. “Condo owners love this option.”

Improved energy efficiency. To get the most from a backup power system, it helps to reduce power demands throughout the house. The best way to identify major and minor energy-saving opportunities is to have an energy audit done on your house. This basement-to-attic assessment typically alerts homeowners about air leaks and low insulation levels that force the HVAC system to work harder and longer than necessary (wasting energy). It will also call out an inefficient water heater, leaky ductwork and a fuel-

hungry furnace. The energy audit itself doesn’t save energy; it simply provides homeowners with a game plan that can often cut energy consumption in half. Making some or all of the recommended improvements not only enables you to downsize your backup power system; it also cuts your monthly utility expenses throughout the year. Here is more information on common home energy problems.

Upgrading HVAC equipment. Hurricane Sandy made many people realize that flooding and fallen trees can make fuel deliveries impossible. One way around this problem is to switch fuels. Another is to replace inefficient HVAC equipment with a new ENERGY STAR® furnace, boiler or heat pump. Replacing a 20-year-old boiler that’s 65% efficient with a new condensing boiler that’s 92% efficient will make a limited fuel supply last a lot longer.

Solar energy systems. The price of photovoltaic (PV) panels that generate electricity from sunlight continues to drop, thanks to a combination of intense competition and technological breakthroughs. When you factor in rebates and other financial incentives, this super-green renewable energy system becomes pretty attractive. (Visit the Database of State Incentives for Renewables and Efficiency www.dsireusa.org to learn what incentives apply in your area.) A PV system provides you with site-generated electricity whenever the sun is shining.

“For storm survivability, we can install a battery backup system that’s charged by solar panels,” says Angeloszek.

“Customers with this type of system don’t need to worry about powerlines going down in a storm. The batteries power the house at night, and the PV system provides power during the day, while also recharging the batteries.”

Of course, you don’t need a power outage to appreciate a PV system. The electricity your system generates is free, and in states with net metering regulations, the power company must purchase any excess power that you generate.

Basement waterproofing. It’s unfortunate that the same storms that cause basement flooding also tend to knock out electrical service, rendering most sump pumps useless. All is not lost, however. What you need is a sump pump system that can operate on a backup battery when standard 120volt current isn’t available. Larry Janesky, owner of Basement Systems in Seymour, CT, takes it one step further with his TripleSafe® sump pump system that includes three separate sump pumps. “The first pump handles day-to-day pumping requirements,” he says. “The second pump actually has higher capacity and will come on automatically when the first pump can’t handle the water volume or isn’t operating for some reason.”

Working together, pumps 1 and 2 in the TripleSafe system can move up to 6200 gallons per hour, a water volume that would easily overwhelm most standard sump pumps.

The third sump pump operates on battery power, so it takes over during a power outage, moving up to 11,000 gallons before the battery needs recharging (extra batteries can be added to extend run time).

The Romano family of Long Island, NY had two TripleSafe sump pumps installed when they had a basement waterproofing system installed in 2011, following hurricane Irene. When hurricane Sandy hit, their basement stayed dry in a neighborhood where most basements filled with several feet of water from the storm surge. “My neighbor and I walked outside the day after the storm,” recalls Anthony Romano. “We couldn’t believe the amount of water that was being pumped out of our basement. It’s amazing that it stayed dry.”

Not just storm readiness, but improved resale value as well. No real estate professional would read this article without asking what effect these improvements might have on resale value. The news is pretty good here too. According to a study by the National Association of Homebuilders, over 60% of builders and remodelers report that home buyers are willing to pay more for “green” homes with features like improved insulation levels, solar panels and energy-efficient HVAC systems. Programs are underway to educate home appraisers so that they can better recognize and value features that conserve energy or utilize renewable energy.

Tim Snyder is a journalist specializing in sustainability, energy efficiency and home building topics.

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Why guest blogging is so important to your Real Estate Business

By Daniel Adetunji

I

don't know about you, but guest blogging is the only tool I use to drive prospective leads for my freelance and guest-blogging business, build quality back-links to my blog pages, boost my online brand and grow my connection with other top professionals in your field.

If you’re a real estate agent, you've probably heard about guest blogging. Right? Ok, if you don't know what guest blogging is, let me explain: Guest blogging is the act of writing a quality post for a blog with the aim of getting quality back-links and traffic to your blog. If you’re a real estate business owner or broker, guest blogging can be a very good way to generate client leads, build a strong online presence, double your income and also stay in touch with existing prospects.

You may not know how important guest blogging is to your business, but trust me, guest blogging alone has helped me gain over 3,000 visitors monthly within four to five months. Guest blogging has made me who I am today, and it’s the number 1 marketing tool I use to build my online business.

Before I continue, how many of you would like to generate more leads?

Hmm. Wow! 1, 2, 3, 4. Oh! 2,000. That's good (just kidding). If you're looking at driving more prospects to your

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February 2013

business, then I'll advise you to pay attention to what I have to say in this article. I may not be an expert in your field but I'm a guru when it comes to guest blogging.

I know how to pitch ‘guest post’ Ideas that can gladden the heart of a stubborn blogger to say YES. So, will you promise me you'll read and apply everything I share in this post? Ok, seems like we have a deal.

Without wasting much time, here is why guest blogging is important to your real estate business:

1. It will build your subscriber's base How would you feel if you wake up one morning and you find over 400 leads subscribed to your email list? Guest blogging is the one of the best ways you can achieve this.

I have written guest posts for some top blogs that helped me gain over 100 subscribers within 24 to 48 hours, which I wouldn’t have been able to achieve if I didn’t have a good advertising budget. In fact, every single guest post I write for a big blog sends me a minimum of 30 to 40 subscribers. The key here is to be strategic. If you want to increase the chances of getting your guest post to go viral, then you must learn to be creative or hire a professional guest blogger.

It doesn't matter if it's back-links or subscribers you want, guest blogging works! I'm a testament to that.

2. It will help you build a great social media following You might not care about building traffic or your list of prospects; you may just want a strong Facebook fan base or Twitter followers. Guest blogging is a very effective way to build your social media presence. In fact, I get as many as 10 to 40 followers on Twitter anytime I include a link in my guest post for people to follow me. So, don't worry about paying for Facebook ads to advertise your business fan page (my opinion); guest blogging can build you a fan page of 1000+ within weeks or months, depending on your strategy.

3. It will increase your brand awareness Another reason why you should guest blog as a real estate business owner is that it will help in building your brand. Okay. Let’s take an example. You write a guest post for a blog that gets over 15,000 visitors daily, and during that time your guest post was viewed about 3,000 times. Even though you might not get all 3,000 people to visit your blog at that time, the truth is your brand name has been exposed to over 15,000 people.

When you continue this repeatedly and people start

noticing your name everywhere, it will make them curious enough to ask about what you offer.

4. It will help build your authority Do you want to be a trusted authority as a real estate broker? Do you want people to trust you and do more business with you online? Guest blogging can you achieve that.

Let me tell you something you don't know: It doesn't have to take years for people to recognize you as a go-to expert; in fact, it took me only 4 to 5 months. I started guest blogging only 4 months ago and within that time, I've written and published over 100+ guest posts on topauthority blogs.

The reward: It made me a respected figure in my niche.

With guest blogging, you can easily associate yourself with other top real estate experts in your niche and get to know how they operate their online businesses.

5. It will build your domain and search authority Another reason why you need to guest blog as a real estate owner or online entrepreneur is because it will help

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build your domain authority and brand name. Let’s take my blog for instance: I was able to build a blog that got as much as 198 unique visits everyday within 4 to 5 months, and some of my guest posts even rank on the search engine for highly competitive keywords.

However, it doesn't matter if you want to build your domain authority and improve your SEO, guest blogging can help you achieve that.

6. It will improve your writing When I first started out as a blogger, I wrote guest posts on a large scale and submitted to other blogs in my niche. I wrote these guest posts with my spirit and I put all my effort into making them the best I could. One day I submitted a guest post to a very recognized blog in my niche, but the blog owner replied saying that he doesn't know what to make of my post. I got angry at his response and decided not to send a guest post to that blog again.

Later that night, I told my elder brother about what happened and he advised me to give a thought to what the blogger said. So, I got on my computer that evening, re-read and edited my post; then I submitted to that same blog and it was published the next day.

You may not know how effective guest blogging can be, but trust me, it can be a good way to polish your English skills.

It doesn't matter if your post is inspirational, information packed, or helpful; it can’t be of benefit to others if they can't read it. So, guest blogging helps you take the right steps to make sure your writing improves.

Smart steps to write and publish a guest post Do your research on the host blog. One of the first things you must ensure you do before sending a guest post to a blog is to find out what the blog is about. Check the ‘about me’ page of the blog, the recent posts, their writing style, scour their archives, subscribe to their RSS feeds, become

“I’ve gotten great compliments on my newsletter and people say they really enjoy reading it!”

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their subscriber and read the comments made by other readers. Just research to get a glimpse of what the blog is all about.

Research your guest post topic beforehand. Before sending your guest post to a blogger, make sure you research your headline and back it up with information-packed data.

Here's what I mean: If you browse through the archives of the blog and you find that a topic on ''Social media marketing'’ hasn’t been published, you stand a good chance to get your guest post accepted. But don’t stop there; you must search for other top blogs that talk about the topic, and read more and more so you can come up with cornerstone content.

Write from your heart. Can you write from your spirit?

If you can, good for you.

If you're very fast at writing and have good word expression, you should be able to churn out a 1,000-word guest post article within one hour.

Re-read your post, edit to remove spelling and grammatical errors, format your post and back it up with an image.

Don't be surprised if your guest post is rejected even after going through all this. In fact, don’t feel bad or dejected; just post the article on your blog or submit to another blog.

Congratulations! Follow up with comments Is your guest post live?

Congratulations!

Now, it doesn’t stop there. You have to follow up with comments and do your best to make the post go viral on social media networks. Most A-list blogs have a wide and responsive audience and their readers will be there to leave comments. Ensure you find time to reply to the comments.

Reward: You’ll get to create a strong relationship with the blogger, and the majority of the blog readers will get to know you.

Hint: Remember, you can’t be accepted a second time if you mismanaged the first opportunity. So, do ensure you make best use of your first chance so you can get another post published.

How to pitch quality guest post ideas that get accepted I'm not trying to brag here, but over 20% of my guest posts have been published without sending a pitch idea. Why? Because they were published on medium-sized blogs.

If you want to get your guest post published on top-authority blogs like Businessinsider, Readwriteweb, Pickthebrain, and the rest, you need to pitch them your Idea

before writing the draft.

Over the five-month period of guest blogging on top-authority blogs, I've created several guest post pitch templates. Here is one I use frequently. You can copy or tweak it. Your choice!

Hello (Blogger name), How're you doing and how's business going?

I came across your blog four months ago and I must really thank you for the value you offer to your readers. You’re really doing a great job!

Attached to this email is a guest post titled ''The Ultimate Guide to guest blogging for real estate bloggers.'’ I believe this guest post will be of immense benefit to your readers.

Thanks and do let me know the status of the post.

Thanks again, Daniel (Your Blog URL) I'm not saying you should use this exact template; instead, use it as a guideline when writing a pitch email.

There you have it! Now, can you see how important

guest posting is to your business? Are you ready to give it your best shot? Please do, but If you don’t have the time, I can help you.

Please Not this: The tips in this article are also applicable to everyone in any area of business. Whether you’re an entrepreneur, online coach, affiliate marketer, SEO company, stockbroker, or real estate agent – it doesn’t matter what you do, guest blogging can be very helpful to the growth of your business.

P.S. If you’re interested in hiring a content and professional guest blogger to help you start a guest blogging campaign, GET IN TOUCH WITH ME.

Your turn to dazzle me Does this post inspire you? Please share with your friends and leave a comment below.

I'd like to know what you think!

Daniel Adetunji is a ghostwriter, freelance writer and professional guest blogger who offers guest posting services. He has helped different companies, medium-sized and small business owners, market their brands with guest blogging. He is also the CEO of Information World.

How we see it

TheNicheReport.com

31

New Bank Standards May Tighten Screws on Lending Until 2015 By coery curwick dutton

W

hat is Basel III and how will it affect U.S. bank lending in coming years?

Named after its meeting place in Basel, Switzerland, the Basel Committee on Banking Supervision is the International oversight body for bank regulations. The Committee recently passed a new “accord” or regulation called Basel III, which could seriously affect the future of U.S. banks. Basel III is the third in a series of accords for banking supervision that has been passed in response to the banking meltdown of 2008 and 2009.

Although many will strongly argue that banks should indeed have higher standards imposed for liquidity and leverage, opponents of Basel III have said that it will put many of the smaller, local banks out of business. Either way, this will certainly not stimulate U.S. banks to loosen up lending in the next several years, given that they must comply with much higher liquidity and leverage standards by as soon as 2015.

However, the Basel III standards were recently softened a bit in response to bank lobbyists. The response to this news temporarily boosted bank stock prices at the start of 2013.

Banks still must have a stock of easy-to-sell assets to meet sudden demands during a 30-day market crisis. But the Committee has recently changed what can be counted as an “easy to sell” asset, allowing mortgage-backed securities and 32

February 2013

other assets to be included in this mix. They’ve also loosened the liquidity requirements on big banks that lend primarily to big corporations.

Although the Basel III standards have been softened this month, I believe that lending in the U.S. will continue to remain tight over the next several years. As banks make efforts to comply with Basel III by 2015, they will be looking to deleverage their balance sheets, not likely to renew existing loans to commercial borrowers. And in issuing new debt in coming years, banks will likely cherrypick which loans to do, selecting only the best loans.

But what should borrowers do in response to this potential threat to bank lending? Get a head start on your real estate financing needs for 2013 and be prepared to find multiple options for financing, including private money loans. Even if banks continue to lend more freely in coming years, many of them will likely raise their underwriting standards even higher to qualify only the best loans.

Corey Curwick Dutton is a private money consultant for Private Money Utah, a real estate lender based in Salt Lake City, Utah. Corey is from Austin, Texas and is an MBA Graduate of the prestigious Thunderbird School of International Management.

An authority in the private money lending industry, Corey provides educational resources for investors who use hard money loans in their real estate investing activities. Before she joined Private Money Utah, Corey was the President of an investment education company in Utah called Bray-Conn Investments LLC.

Service Provider Classifieds

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Apartment Bank, a division of BofI Federal Bank (NASDAQ:BOFI), is a Nationwide Direct Portfolio Lender that has solidified its standing as a premier multifamily lender in the small balance lending space. Apartment Bank’s flexible approach is key to freeing borrowers and brokers from the typical headaches and hassles of small loan transactions. Loan amounts from $250,000 to $10,000,000. Visit http://www.apartmentbank.com

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February 2013

LENDER AND RESOURCE DIRECTORY

Apartment Bank Apartment Bank, a division of BofI Federal Bank (NASDAQ:BOFI), is a Nationwide Direct Portfolio Lender that has solidified its standing as a premier multifamily lender in the small balance lending space. www.apartmentbank.com 877-442-4003 apartmentcustomerservice@apartmentbank.com

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LENDER AND RESOURCE DIRECTORY

Pillar To Post Professional Home Inspection Leading home inspection company, whose professional inspectors work with both the real estate community and the buyer or seller of a home to provide on-the-spot inspection reports. www.pillartopost.com Jay Gregg, Director of Marketing 416-620-3567 jay.gregg@pillartopost.com

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Primary Residential Mortgage We offer strength, trust, and integrity you can rely on. www.primaryresidentialmortgage.com 800-255-2792 36

February 2013

Marsh U.S. Consumer, a service of Seabury & Smith, Inc. The nation’s leading broker and administrator of insurance programs. www.realproeando.com 866-795-9613 realproeando@marshpm.com

Right Side Marketing Marketing Materials for Real Estate and Mortgage Professionals. www.rightsidemarketing.com Jill Fleischman 800-456-4395 x10 jill@rightsidemarketing.com

Smarter Agent, LLC Smarter Agent Mobile Real Estate Application Platform. www.smarteragent.com 888-486-7319 gomobile@smarteragent.com

- continued from page 38

Couple images of new home types, distinct home features or builds, or community events to provide some visual punch to your usual updates. With the latest format of Twitter’s tweets, called ‘Cards’, you can include more visual content than ever right in the Twitter universe.

Pinterest combines effortless discovery and bookmarking with community curating. A thoughtfully composed image can spread across the network like wildfire, and drive potentially interested parties right back to your site or listing. Heartland Homes puts a lot of time and effort into photographs that really capture the look and feel of our home designs. Those that we’re especially proud of, we share on our Pinterest boards. Those photos then serve as an inspiration for members of the Pinterest community, an aspiration for members of our community who might someday hope to own a Heartland Home, or motivation for potential homebuyers who see the images we’ve pinned to find out more. The visual nature of Pinterest makes for a fertile fantasy land for homeowners to project themselves into.

Facebook, although not a new player on the scene, is also a great place to make a difference with pictures and images.

How we see it

Their change to the Timeline format earlier this year and upsizing of available image real estate has spelled success for home builders and real estate professionals looking to share information about their homes and listings with a visual hook. At Heartland Homes, we’ve received a great response from sharing images of our home designs and new communities with our Facebook following. We also try and incorporate a visual cue to everyday posts on our page as well, to make that extra impact and keep the Heartland brand fresh in the minds of our fans. Simply attaching an image to an otherwise uninspired link can make a world of difference.

And this should come as no surprise to seasoned industry professionals – real estate and homebuilding professionals have already seen this impact on sites like Trulia and Zillow, both young giants in the online real estate world.

Anyone with experience on these sites knows the difference a few photos can make. And studies have shown that listings with more visuals stay on the market for about a 20% shorter period of time and sell around 2% above expected value.

Home buying and building is about liking what you see and creating a sense of comfort for the new buyer. By having a means to get such information through social media, home buyers are able to determine the features they like and what they are ultimately looking for. Better still, the exponential nature of social media helps grow a real estate professional’s or home builder’s credibility and visibility. And, after all, what’s visibility without being a little visual?

Adam Packard is the Marketing Manager at Heartland Homes in Pittsburgh, PA. Be sure to visit the builder on Pinterest and check out its new homes blog. Also, share your social media plans for 2013!

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Home Builders Trend toward Visual Social Media A high-resolution image can make an enormous impact By adam packard

T

he world of the real estate listing has certainly come a long way. Text-only advertisements have been relegated to the classifieds, and the grainy blackand-white handouts of recent history are already less and less relevant. Online services and high-speed connections are paving the way to a new kind of real estate listing – a listing where the pictures do all the talking. In an industry where so much hinges on visuals, where a first impression of a home can make or break a deal, there is no better tool than the rapidly expanding world of visual social media.

Social media, by its very nature, has always empowered visual engagement by allowing people to connect and share pictures, links, and information. Over the past year especially, those types of media have been morphing and changing, with older sites incorporating more space for images and new image-only media coming into the spotlight. Images are vital to the world of social media, driving engagement and interest worth beyond 1,000 words. Coupled with the reach-generating potential of social media services, a high-resolution image can make

an enormous impact for a home builder or real estate professional. That means to really make an impact on these sites, industry professionals need to begin creating stories with photos and videos that potential homeowners can relate to. Here are some of the networks where those stories can really thrive: Twitter is a social media site that centers on short and sweet content, perfect for the instant impact of a visual.

- continued on page 37

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February 2013

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