Networking Allows The Impossible

Responding to More Thoughts On Networking my friend Bill Roberts wrote: "That was the same methodology we used as Exchangors back in the '70s. Most of the younger people in this business get very defensive when you ask questions about their clients. I guess they don't understand that in a "normal" market the property isn't going to sell itself. A little "creativity" is called for if we want results."

He's right, that's where and when I was taught, five days a month networking, one on one and in selected groups

Networking one on one, or in groups allows you to do things that you could never do on the MLS. Back in the 70's commercial brokers faced the same kind of fluctuating unstable market that residential salesmen are facing today. Values and asking prices often had little or nothing in common. Traditionally, you determined the value of a property, listed it close to that and waited for a buyer. Often waited and waited and waited and waited. Waiting was all right for some. Many even list at outrageous prices and simply wait for their ship to come in.

Today home owners find themselves waiting and waiting, not only has their ship not come in, it sank at sea!

What those commercial brokers did together, was to over look asking price and look at the seller's problem. No one really wants cash, they want the benefits cash can get them. We forget this! We also forget we're in the people business! Marketing houses has gotten to be like selling new cars, you want a red Ford there are 57 of them on role 93 section G, go get one.

At a time when asking prices, values, and mortgage balances, again have little in common, it's time to take another look at solving the people problem.

What I learned so long ago, was to do the impossible. They taught me how to sell a two percent return!

So how do you sell a two percent return? You find someone making one percent and double his money. Today like then, you need to solve the people problem!

So what does all this have to do with professional networking? You can't explain your clients problems on the MLS, at least you shouldn't! So networking with other real estate people allows you to get help. Solving the problem requires two people and having them both in your own office is even less likely than selling your own listing!

I hope to see you at the Barcamp in Houston October 22!

Bill

William J Archambault Jr

The Real Estate Investment Institute

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TAGS: networking, reii, fli, ccim, realtor, barcamp, william j archambault jr, the real estate investment institute

Bunk, BUnk, BUNk, BUNK

Bunk, BUnk, BUNk, BUNK

A comment on Where' the Bottom of the Burbank Real Estate Market ?

I don't believe you can apply the principles of technical analysis to home purchases! Nor do I believe you can apply them to small (1 to 4 unit) investment properties in a tough market.

 

No one likes to crunch numbers more than I do. Many years ago as an expatriate banker I got to learn from the best. I joined Michigan's CCIM Marketing Group as a canadate for a CCIM, but a year later I was not making sales. I learned to prove that no property was ever worth anything! There was always suppose to be a better deal somewhere. Our analyses were numerically perfect, scientifically sound, tax and legally correct, but utterly worthless! We weren't selling and we were protecting our clients out of less than mythical profits!

The problem with statical analyses of home values is that there is no consideration of function and no consideration of mandatory alterative cost, if you don't buy you still have to live somewhere! Homes are deferent! If the house in question could rent for $2,150 / month, but you could live in something smaller say a $1,150 rental, is the cost of the home $2,150 / month or is it $1,000 / month? Lenders will be concerned about comparable and variable markets, but they don't have to have some place to live. The more you're leveraged the more concerned the lender is in protecting the value. Provided you don't exceed financable values, analyses of a home's value is flavourous.

Analyses of small non-owner occupied rentals is also of limited value! The problem with applying CCIM type technical analyses to small investment properties is that your investor will miss so many profitable opportunities looking for the elusive if not extent perfect investment.

There is an alterative! Do the Doable! Learn to sell a 2% return. About a year after I got involved with the CCIMs I was introduced to another group. This new group's members could hardly balance their own checkbooks, but few of them had to! They knew how to sell a 2% return! How do you sell a 2% return? Find a person making only 1% and double his money!

Most people can't get the ideal or even reasonable return in today's market, but they can make a profit! Let those who over analyses every opportunity laugh at our investors as they go by, on the way to make deposits at the bank. It's much better to do the doable than procrastinate.

Bill

William J Archambault Jr

The Real Estate Investment

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TAGS: bunk, reii, william j archambault jr, do the doable, ccim, fli, investment, home value, the real estate investment institute, technical anal