Real Education By Thomas – A Blog About It

Richard Retires Today

My great friend, Richard Reed, retires today. A skilled craftsman and painter, Richard helped me build my second Pygmy kayak 3 years ago. Pictured above at Lake Sammamish Park is Richard at our first launch of this 14′ beauty. For almost 3 months, he came over to my place almost daily to help build. His skill added a huge amount to how it turned out, and I owe him a lot of thanks for all his efforts.

Here is Richard helping me launch the first time this kayak was in the water. He is a true friend. He turns 66 in a week, and will head south to Arizona later this year for a sunnier winter.

Thanks Richard. We will miss you when you leave.

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Marketing Ideas

I have heard some really creative and productive marketing ideas from agents/brokers recently. If you or someone you know is marketing in a creative way, and would be willing to be interviewed, I would love to write it up and showcase it here on my blog. I will not put it out there without your permission, so please let me know. Please email me with any ideas at tom@thomasjbeno.com . Have a great week!

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How to Come Up with a Down Payment

Zero-down mortgages are fading as lending rules tighten. If you lack the cash to get into that new home, consider these 12 options along with some buying strategies.

 By Bankrate.com

 Not long ago, no-down-payment loans were the height of fashion for homebuyers. But now that lenders have tightened their standards, borrowers once again are expected to “put some skin in the game,” to use a favorite industry catchphrase.  That “skin” refers to the borrower’s own cash, and it means down payments are definitely back in style. The chief advantage of a down payment today is simply the ability to qualify for a loan, as only a handful of so-called zero-down loan programs still exist. Yet down payments have other benefits, too.  The more money you put down to buy a home, the smaller your monthly payments will be, explains Greg Gwizdz, the national sales manager at Wells Fargo Home Mortgage in Des Moines, Iowa.  A buyer’s down payment becomes a homeowner’s instant equity when the purchase closes, and that equity can be borrowed against with a home-equity loan or line of credit. Guidelines to qualify for these loans have become much stricter, however.  And, Gwizdz adds, many first-time homeowners are “surprised by the true cost of owning and maintaining their home.” So they should keep some reserves rather than allocate every dollar to their down payment. Some loan programs require cash reserves for this reason.

 Other benefits of a down payment include:

• Borrowing less money to buy the home.
• Shopping among more lenders, loan originators and loan products.
• Getting a lower interest rate.
• Paying less for mortgage insurance.
  • Avoiding mortgage insurance altogether if the down payment is at least 20% of the home’s purchase price.

 How to get a down payment

 Many homebuyers have difficulty coming up with a down payment. Here are a dozen ways to do it:

• Set up an automatic saving plan.
• Get a gift from your parents, grandparents, other relatives or friends.
• Sell a car, boat, motorcycle, collectibles or other assets.
• Liquidate stocks, mutual funds, savings bonds or other investments.

One year after the mortgage meltdown began, millions of homeowners are finding it’s getting even tougher.

• Allocate your income tax refund.
• Take a loan from your 401(k)  retirement plan and repay yourself with interest.
• Withdraw funds from your 401(k) plan, subject to taxes and penalties.
• Collect on a loan that you made to someone else.
• Get a bonus from your employer.
• Explore homebuyer programs for public servants if you qualify.
• Apply for a state or local government down-payment program.
• Use a private down-payment assistance program.

A down payment needs to be “sourced and seasoned,” Gwizdz says. That means the lender needs to know how you obtained the funds and that you’ve had control of those funds for at least several months. Gifts and seller’s concessions are acceptable, up to the percentage allowed by the loan program, but borrowed money can’t be used as a down payment, as it is debt that has to be repaid.

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More Q & A on new Fingerprinting rules

Direct from the DOL here is verbatim the latest on the new fingerprinting process for license renewals:

QUESTION:  My renewal date is March 2011.  May I request a fingerprint card from the Real Estate Program in July 2010 so I can get my required fingerprinting completed early?
 
ANSWER:     No, fingerprinting for the renewal of an active license will be required on a predetermined schedule and will only be accepted on cards furnished by the Real Estate Program at the required renewal time.

QUESTION:  How do I renew online if I need to provide a completed fingerprint card?
 
ANSWER:     The online Solar system will not allow you to renew if you are required to provide a completed fingerprint card.  For that renewal you will have to either mail or hand deliver your completed renewal form which will include continuing education affidavit, fingerprint card, and fee.
 
QUESTION:  How much will a license renewal with fingerprints cost?
 
ANSWER:     The broker renewal notice will indicate a renewal of $146.25 if paid on time plus a fingerprint card check fee of $35.25 for a total of $181.50. The managing broker renewal notice will indicate a renewal of $210.00 if paid on time plus a fingerprint card check fee of $35.25 for a total of $245.25. Remember, the law enforcement agency doing the fingerprints will have a separate fee.

I have had a lot of questions on this, so I thought I would pass it on. Hope it helps.

Have a great weekend.

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Must Read Book

Real simply, the book World Wide Rave by David Meerman Scott, changed the way I think about my business. I think it is a must read for any of you interested in reaching out to your potential market through the internet. What’s interesting is that most of the social media techniques being taught out there seem to follow the principles established in this book.

If you want to get a glimpse of what it is about, go to Google Books and look it up. You can read part of the book without buying it. Unfortunately for me, after reading it, I gave it to my brother, and haven’t seen it since.

If you are on the path of learning more about social media and are trying to develop a strategy of you own, this book will lay the foundation of what it’s all about and help define many do’s and don’ts.

Have a great week!

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Good Will in a Down Market

From my friend Steve Rennie at Hammerhouse, here is some great advice:

Good Will In a Down Market
Over the last year, and for decades past, business professionals have experienced the benefits of providing good will for prospective clients in a down market. Doing this can impact your personal business as the market rebounds. For example, when the phone rings today, you ask your qualifying questions….as you listen to the responses, you assess whether it is a real opportunity or not…as you come to the conclusion that there is no way to put a deal together based on this prospects situation, what do you do? Be honest with your future clients, let the person know what you heard, what the market will allow today, and then give some guidance on what they can do to be in a better position in the future. The most successful people in sales consult with their clients more than those that treat each deal as a transaction…by giving them advice on what they can do on their end to better their situation; you can position yourself to be their solution in the future. Good will in a down market can go a long way. Here’s what you do:
LISTEN carefully to the details of the situation and be understanding while you try to relate. Be prepared to share a story of another client’s similar situation thus positioning you as a consultative resource versus that of a transactional player interested in a commission today.
STAY EDUCATED and know how to position clients for the current marketplace. Teach them how their situation is impacted by our current economic landscape. Remember to invest time in them today knowing you want to do business with them in the future and creating a customer for life.
Set an expectation with your future client to FOLLOW UP in a timeframe that would be appropriate to check up on their progress, and then put it in your calendar so that you FOLLOW THROUGH.
ASK FOR REFERRALS….plant the seed that you are a resource for anyone wanting to understand the current market and how working with you can create value for them today.
The better you can articulate your value proposition and better differentiate yourself from your competition, the more creditability you will have. This will provide an opportunity for you to have greater results long term.  
Trap doors:
Don’t make the mistake of leaving a bad impression because you knew there was not a short term opportunity. Don’t treat this conversation as a transaction but see it as an opportunity to build a relationship through a process.
Building business with goodwill in a down market involves extra time and effort, but only because educating people is different than trying to only structure a deal for today. Lastly, don’t forget to add these contacts as future leads to your ACT/CRM or other contact management system so that you can follow up and follow though beyond your initial conversation. Remember the real value is in the developed relationship not the transaction of a deal. As you build more clients for life, you create a more sustainable business for your future. Take the time. Invest in your future!
Let me know how this topic IMPACTs your business and feel free to share what you are seeing in your market. Hammerhouse will continue to strive to create value for you through what we are seeing and learning over time. If you want to find out more about our opinion on where the market is today or where we see it going, give us a call.
 
Steve Rennie

Hammerhouse LLC
Strategic Growth Partners

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New Rules on Fingerprinting

Direct from the DOL, here are some questions and answers on the new fingerprinting rules:

QUESTION & ANSWER
FOR THE NEW 18.85 RCW
February 10, 2010
 
QUESTION:  I hear the new Real Estate Licensing Law requires all existing licensees to be fingerprinted.  Is this correct?
ANSWER:     Yes
 
QUESTION:  I am an active real estate licensee.  Do I have to be fingerprinted by July 1, 2010?
ANSWER:     No 

QUESTION:  By what date do I have to be fingerprinted?  
ANSWER:     All active licensees are required to submit their fingerprints to the Real Estate Program at one renewal period during the next six years.  Licensees will be selected for fingerprinting based on a predetermined formula.  If it is your year to be fingerprinted, you will receive the fingerprint card and instructions with your real estate license renewal notice.
 
QUESTION:  How and where do I get my fingerprints taken?
ANSWER:     You must use the fingerprint card sent to you by the Department of Licensing.  You may take it to any law enforcement agency that offers fingerprint services.  There will be instructions included with your renewal notice.  Each law enforcement agency sets their own fee for taking the fingerprints.  You will be required to pay them at the time of the fingerprinting.
 
NEXT WEEK: More on the renewal process and costs involved when fingerprinting is required
 
 
==============================================================================================================================
OTHER LINKS…
DOL Real Estate Home page:
www.dol.wa.gov/business/realestate/

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First renewal for a new agent today

After teaching a few of the new Transition Classes and discussing all the new requirements, I want to clear up one or two things. Since I have seen conflicting information, I checked with the DOL and cleared up a few questions.

Question 1:

I just became a new salesperson today, what will I need to renew my license upon my first renewal?

You will need 30 hours of Practices, and 30 hours of electives, including a 3 hour Core and the 3 hour transition class. For those getting licensed for the first time after July 1, 2010, the educational bar goes up substantially. After July 1, a new licensee (minimum being a broker), will need 60 hours of fundamentals and 30 hours of practices to take the exam, and then 90 more hours to renew the first time: 30 hours of Advanced Practices, 30 hours of RE law, and 30 hours of electives.

Question 2:

After July 1, 2010, will a Designated Broker need to have ownership interest in a firm to be endorsed and registered as the Designated Broker for that firm?

No, but he/she will need to have controlling interest in the firm. If the firm is a corporation, being an officer would be enough to have controlling interest, regardless of ownership.

If you have any questions, please send me an email at tom@thomasjbeno.com and I will be glad to get back to you.

Have a great week!

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Don’t miss Transition Class Wed. Feb. 10

The new Transition Class is required for your license renewal after July 1 of this year.  It is a 3 hour class covering all the new licensing changes and some current issues. Go to http://bit.ly/TRANSbellevue0210 for more info and to register for this class. Held at Wall’s Insurance at the easiest to find location in Bellevue, this location provides free parking. The picture above shows the building which is just south of the Coast Hotel. The class starts at 9:30 AM.

Preregistration is required and the fee for the class is $25.  Questions can be directed to me at tom@thomasjbeno.com .

Have a great week and we hope to see you at the class.

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