What a shame we never listened I told you through the television And all that went away was the price we paid People spend a lifetime this way And that’s how they stay Oh what a shame.
Words come easy, when they’re true Words come easy, when they’re true
Real estate coupons!? Please tell me this is a joke. RealtyCoupons.com says it “allows Real Estate Professionals to dramatically increase their Business and Production by offering Coupons for their Real Estate related business.” This is nothing but a cheesy gimmick aimed at despondent agents who think that lowering themselves to this level is going to procure business. What gets me most is that there are actually agents who buy into this and fork over their time and money. Glancing over the coupons posted by agents, it literally reeks of desperation. We do not need to stoop that low.
One of the more outlandish coupons offered is 50% off all real estate services, valid through 07/2012. It’s an agent firesale! Besides the fact you’ll probably go negative giving away half your earnings after factoring fees, taxes and expenses, you might as well strap a mobile police light atop your car, driving around the neighborhood with a speakerphone blaring “Attention Kmart Shoppers!” Who in their right mind wants to be known as the “Blue Light Special” Agent?
For those agents who are even remotely thinking about creating coupons, make no mistake… No client is ever going to have the following conversation with their friends and family: “Sue is a great agent! You ought to give her a call” “Wow, she must be an ethical and knowledgeable expert.” “No, you silly. She accepts coupons! Here‘s one I clipped out for you. Hurry, though. It expires tomorrow.”
Furthermore, real estate coupons are a dangerous path to go down. One day you’re doling up coupons to drum up business, and pretty soon, you find yourself accepting food stamps for your commission. Have some standards, people! If you continue debasing yourself, you are going to find yourself one day blurting out “Yes, I do!” when a prospect asks you, “Can we pay you on layaway?” Where does it end?!
Who goes to realtycoupons.com to look for coupons anyway? If you have to coupon, at least look less desperate by putting on on your Google Places profile, on Yelp or Groupon. Please!
For the love of Lady Gaga, there is no need resort to these foolish antics. Instead of wasting time and money on real estate coupons (and incidentally demeaning your brand), allocate your resources elsewhere to attract clients. Can I get an Amen!?
IHB News
I bought another house in Las Vegas this week. I wasn't planning on buying another one, but the deal was so good, I couldn't pass it up. I picked up a 3,300 SF house with a 3-car garage in a nice neighborhood for $201,700. It comps for $285,000 to $300,000. It will take a few weeks before I get pictures for this one as it is currently occupied. I should have a post on the first property I purchased this week. It is being photographed Monday, and if I like them, I will put up the MLS listing in Las Vegas and profile the property here.
I spent most of the week getting my systems in place to analyze, acquire, and process these properties. As I go through the process with these first ones I will refine my systems to be prepared to process more. I originally planned to put these systems in place before acquiring any properties, but the deals I spotted were just too good to let pass.
The company I work with in Las Vegas has the ability to find last-second dropped bids. The property I bought for $201,700 was $15,000 under my maximum bid price. Since nobody else had a chance to check out the property, I was the only bidder. Banks are pretty stupid when it comes to late dropped bids. They could have gotten a significantly better price if they had given potential bidders more time to research the properties. I can't say it upsets me to profit from the stupidity of banks.
As I mentioned last week, the window is closing on the investment fund. The first property is being listed next week, and when it closes escrow, the fund is closed for good.
Writer's Corner
I went to Mickey's Not-So-Scary Halloween Party on Friday evening. It was a great family event, and a good time was had by all. I highly recommend it. I want to offer a special thanks to Jamie Griffin who gave me the tickets she was unable to use.
I am a Disney regular. We have season passes, and my son and I go nearly every Sunday morning. We like to arrive just as the park opens and go on his favorite rides before the lines get too long. It is the high point of my week, and my son and I have many fond memories of Disney. Sometimes, we go on Splash Mountain first thing, and if there is no line, we stay on the same log and go over and over again. There are some aspects of Southern California life you can't duplicate in other places.
The best case scenario of prices while the banks dispose of their inventory is for prices to remain flat. Even if the banks can manage to engineer that miracle, there is still a cost to buyers who need to sell during the flat period: broker's commissions.
During the last period of flat to slowly declining prices in the early 90s, the most common lie realtors told their victims was that prices would rise 4% to 7% next year. The reason for this particular brand of bullshit is the need to convince a buyer that the commissions will be covered if they need to sell. What happens when prices don't go up?
Home Purchase Price … $805,000 Home Purchase Date .... 1/30/2008
Net Gain (Loss) .......... $(53,940) Percent Change .......... -6.7% Annual Appreciation … -0.3%
Cost of Ownership ------------------------------------------------- $799,000 .......... Asking Price $159,800 .......... 20% Down Conventional 4.74% ............... Mortgage Interest Rate $639,200 .......... 30-Year Mortgage $160,579 .......... Income Requirement
$3,331 .......... Monthly Mortgage Payment
$692 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $67 .......... Homeowners Insurance $75 .......... Homeowners Association Fees ============================================ $4,165 .......... Monthly Cash Outlays
-$804 .......... Tax Savings (% of Interest and Property Tax) -$806 .......... Equity Hidden in Payment $288 .......... Lost Income to Down Payment (net of taxes) $100 .......... Maintenance and Replacement Reserves ============================================ $2,942 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $7,990 .......... Furnishing and Move In @1% $7,990 .......... Closing Costs @1% $6,392 ............ Interest Points @1% of Loan $159,800 .......... Down Payment ============================================ $182,172 .......... Total Cash Costs $45,000 ............ Emergency Cash Reserves ============================================ $227,172 .......... Total Savings Needed
Property Details for 18 DELAWARE Irvine, CA 92620 ------------------------------------------------------------------------------ Beds: 4 Baths: 3 baths Home size: 2,800 sq ft ($285 / sq ft) Lot Size: 4,419 sq ft Year Built: 1985 Days on Market: 66 Listing Updated: 40431 MLS Number: P745761 Property Type: Single Family, Residential Community: Northwood Tract: Cs ------------------------------------------------------------------------------
This gorgeously upgraded and expanded Courtside home, full of natural sunlight, has over $100,000 in recent upgrades: dazzling travertine floors, white plantation shutters, crown molding, recessed lighting, a gorgeously remodeled kitchen with golden topaz granite, tumbled stone backsplash and top-of-the-line Bosch appliances, and three FULL elegantly remodeled baths with a spa tub in the master. For an older parent or visiting guest there is a convenient bedroom and full bath downstairs. So much livable space! In addition to the spacious downtairs family room with wet bar, there is an additional big crafts/study room leading to the backyard, another family room upstairs with wood flooring, and an upstairs landing off the bedrooms which is suitable as a T.V. room. Vaulted ceilings and skylights allow maximum vibrant sunlight into the home. This beauty is located next to a greenbelt/walking path, with additional side privacy and frontal privacy with no houses facing it across the street!
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