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declining graph

News circulating around the realty business always drop the term “declining market” like it is the last definitive determinant of the real estate market today. But this assumption leaves us to wonder – why there is a declining market and who or what is creating this “declining market”.

It appears the business climate in the realty industry in many parts of the United States is currently affected by this status. In fact it is said to bear implications on the supposedly recovering realty market. This declining market condition is being used by some crafty firms and lenders to mark up the interest rates, fees and to demand more requirements which sometimes are too rigid for their clients to meet.

I’ve read that, due to the current state of the economy, charitable contributions are down. We are being asked to give financially to Haiti and many other note worthy causes daily. All the people I know have very generous hearts and wallets and truly desire to make a difference in our planet and in their communities. Our articles, however are mostly centered on receiving, e.g., rental income, cash flow and return on investment.

Business should not only be about what we can get out of it – ideally there must be a mutual exchange of goods or services in which all parties experience value for a healthy balance to exist. Many of our student’s implement our program for the sole purpose of what is it they can receive. No problem, after all business depends upon smart decisions regarding how to make the most of a good investment – so naturally we applaud their thinking.

However, our program innately carries a business balance where everyone involved receives and gives within a healthy mutual respect. In tough times or good times, offering someone a clean, affordable place to call home is foundational to the spirit of giving. At the same time, receiving a maximum return on an investment is ultimately the purpose of good business.

Times are changing more rapidly than we would have ever conceived possible just a few short years ago – business is not “as usual.” In this hard economic period, does it not make sense to enter a business arrangement knowing that it not only benefits you, but countless others? Think outside the box. Remember receiving has the additional bonus of feeling even better when you are giving back in return.

The Real Estate Industry as we all have read and continually hear about on TV is done. So what does a real estate agent / mortgage broker due during these recession periods the industry has? There are very few JOBS (journey of the broke) out there that can compensate any individual like real estate has the past 7 years. There is always a solution to any issue, and the correct path for many of these individuals will be to become part of the home based business.

You are asking why Home-Based? Well this industry has created more millionaires in shorter time than any other. Many of us are not out to make a million dollars, but we are out to create a new life for ourselves with a stream of income paying us every month,year, decade. The home based industry is the only one that can compensate a person just like real estate has the last few years and the numbers continue to grow daily. For any real estate professional out there looking for a TURN-KEY opportunity with immediate income look no further home base is here.

Now I want you to think, possibly 3-4 years ago when money was rolling in steady with Real Estate, I am sure many of you were approached by a Network Marketer offering you an opportunity to build a business once get paid forever. Think about it, if you would have joined that opportunity 3-4 years ago now you would not be scrambling to make money every month now, it would be a TRUE income stream month in month out.

Home Base does not fluctuate based on underwriting rules, banks, its a very simple business model that can be duplicated over and over again. Many worked for a BROKER who received compensation from your efforts, now its YOUR turn to become the broker and override a team of sales people.

Have The Best Day Of Your Life!

Basic principles Every real estate investor should consider:

First, you should make practical goals as an investor. Second, know and appraise the actual market value of the properties you are going to buy so you won’t have to shell out money on costly renovations. Lastly, know everything to know about current mortgage rates and borrowing options so you have an idea on the real cost of any deal you come into.

Agents, home staging is a tool that you can use to “Stand Out” from the crowd.

Real Estate Agents are competing on a daily basis to service sellers and buyers. Great Agents are always trying to find a way to set themselves apart from the rest of the competition.

If you are a agent and looking to sell fast in today’s market, Home Staging is the answer.

Home staging is constantly being featured in the media. Home Staging articles are being featured in the national and local newspapers, television specials, morning shows, and numerous magazine publications including REALTOR magazine. The public is anxiously awaiting more information on Home Staging.

Here’s your opportunity to give the public what they want! Real Estate Agents should make it a necessity by introducing buyers and sellers to home staging companies that can give design consultations or other services as part of your services. It’s definitely an affordable and effective way to ensure that you are current in the latest marketing tools.

Another important advantage to hiring a Home staging company is it also helps eliminate that awkward situation between seller and agent by critiquing the property that is filled with knick knacks, stuffed doll collection and that prominently displayed collection of magnets from around the world. By referring Elite Home Redesign, LLC, a professional home staging company, you allow us to do the “dirty” work, and you appear to have the seller best interest in mind. To the seller, this makes you one smart, professional and a polite real estate agent. Why not help them to help you sell their property!

Did you know that a staged home is a powerful marketing tool? It is a known fact that it is much easier and quicker to sell a home that has been staged than a home without furnishing. Even with minimally staging, a home can sell for a higher profit and in a shorter amount of time. Real estate agents nationwide found that a minimal investment ranging from $100.00 – $2,000.00 (depending on location & size of home) made in preparation for sale actually yield the highest returns when a property is SOLD. So consider staging your vacant listing.

Always remember, Home Staging is a benefit, an asset to your business and a vital and impressive way to get your seller and buyer moving up, moving in or moving on. Wouldn’t you agree?

Realtors before you hold your next open house – get it STAGED! Elite Staging Services are available, contact me for details.

Give my services as a gift to your sellers at listing and your buyers at closing. Staging services also make a great house warming gift!

Once you have chosen your dream home, the most important thing is to ensure a smooth closing. Most home buyers and sellers count on their Real Estate Professional to guide them through this process. As an escrow professional, I know home buyers and sellers are often nervous about the process. If a Realtor wants to truly market themselves as an expert in their field, they should learn the settlement procedures inside and out.

A knowledgeable real estate agent must be familiar with the mortgage lending process, even if they are primarily working with sellers. The sellers will become reliant upon the buyers mortgage lender to ensure timely closing and disbursement of funds. If the Real Estate Agent is going to represent buyers, this is vital to ensure a smooth closing. Most of the larger lenders will offer seminars to help inform Real Estate Agents on typical lending practices.

Another important part of the settlement process is the title insurance or lien search. The Realtor must be prepared to explain to their client the ins and outs if a defect on title were to arise. The Agent must also be familiar with the typical charges associated with searching and insuring a clear title. These cost vary from state to state, and the responsibility of the buyer or seller to pay for these charges also vary by region.

Lastly, it is an absolute necessity for the Realtor to be knowledgeable of the HUD-1 settlement statement. This document explains to the client in detail all the charges associated with the transaction. The HUD-1 will provide the buyer and seller with their bottom line. An informed Real Estate Agent will be able to catch any mistakes or incorrect charges to their client. Knowing what is being charged and why is vital to provide excellent representation of the buyer or seller in the transaction.

The settlement process can be overwhelming to a buyer or seller, especially if this is their first or second transaction. The client has obtained a Real Estate Agent to guide them through the purchase or sale of the property. Representing the client is so much more than showing them properties or putting up a sign and finding a buyer for their property. If a Realtor can properly inform their client of each step towards the settlement and disbursement of the transaction, they are truly representing them.

In my daily dealings with small business owners I see entrepreneurs struggle with the question of whether to lease or own consistently. The idea of owning can be very appealing, especially now as interest rates are still low (historically), new loan programs are popping up like 90% non SBA financing and 30 year fixed programs. And, building bargains seem abundant.

This question is certainly not new. Businesses have struggled with this for years – in good times and bad. The decision can become complicated quickly as objective (financial, space needs, etc.) and subjective factors (business image, growth plans, pride of ownership, etc.) combine. Forces outside of the business owner’s control, such as the general economy, interest rates, future real estate values, further obscure the issue.

The most thought of advantage of ownership is the potential appreciation. However as we are seeing now, appreciation is not always guaranteed.

Historically, financial experts have broken down the question by quantifying the factors such as the difference between the down payment/monthly mortgage vs. lease payments (among many others factors such as tax rate, tax benefits, interest rate, inflation, depreciation, expected holding period, expenses, etc). The point is to come up with an estimate of the buyers Internal Rate of Return on the down payment injected into the purchase.

Internal Rate of Return is commonly discussed, analyzed and dissected. Many factors can be manipulated, such as the anticipated appreciation rate inflation rate etc, to come up with different projections. Some of the major pros and cons of ownership include:


o The creation of equity
o Monthly mortgage payment is usually lower than comparable lease payment
o Potential future rental income
o Assisting owners with wealth/retirement
o Building an asset that will assist in securing business lines of credit and other forms of loans
o Pride of ownership
o Stability
o Control
o Business image
o Not being exposed to increases in rental market
o Not being exposed to whims of landlords
o Dramatic tax benefits


o Property management responsibilities
o Interest rate exposure on adjustable mortgages and/or if mortgage balloons
o Opportunity costs of down payment not being in a more liquid asset, or being used for business operations
o Decrease in functionality of building
o Building value subject to market conditions
o Length of time in selling building
o Decrease in space flexibility

These types of analysis can be very useful and give a clear perspective on a complicated issue. But, for most small business owners in general and in our Michigan economy, the question really boils down to money, and long term plans.

First of all, can the business really afford to inject 10% or 20% into a facility? Equity is hard to “tap” in commercial real estate. Many businesses need that capital for daily operations. Secondly, what is the difference in the potential mortgage payment vs. lease payments? Is owning going to increase cash-flow for the business (as it commonly does)?

Long term plans. Owning can be the wrong strategy for companies with strong growth potential/ expansion plans as selling on the short term can be expensive and difficult. Also, companies seeking venture capital may want to shy away due to how real estate ownership affects their books.

So, without overly simplifying the issue, the economy seems to be making purchasers think more of “now”, how holding real estate affects their business immediately vs. traditional long term hold IRR type mentality. Many buyers are discovering that despite concerns over the market, ownership still makes a lot of sense for their business and personal wealth.

Today, we will say something in this articles that can make a big difference in your business.
However, you might have used it so many times in your daily life.
We are talking about ads, campaign, direct mail etc.

We suggest you an exercise first.

Pick up the newspaper and have a look at the section where your and other’s classified ads are put.

If your ads have a similarity with other’s, that means you are going to create huge opportunities.

Now it’s time to make a difference. If there are no or less testimonials, you must get an ad published with a testimonial.

Testimonials are powerful thing. They leave a very good impression on everyone.

You can incorporate this strategy in direct mail and other things.

A good testimonial will say these things.

“john helped us so much in avoiding foreclosure and we saved our credit that allowed us to move on our lives. Besides a professional help, he gave us comfort and peace of mind, care. I feel overwhelmed when I talk about his company.”

It is very important that your testimonial conveys right things that is trust, results and genuineness. Business is all about trust.
If you keep these points in mind, your ad is surely going to dominate the ad space.

It is to be noted that we can apply the power of testimonials to other things also.
Letters, direct mails and flyers can be made more catchy and impressive when we write testimonials in that.

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Many small business owners struggle with the dilemma of deciding whether to buy, rent, or lease office space. If you ask business consultants or real estate brokers, you will get conflicting answers. The key point to remember is this: Each small business brings its own unique situations and concerns to the table, which means the answer will be different for each business owner.
A good place to begin is by examining your company’s current business plan and earnings forecast, the credit history, and the local real estate market. Every business idea needs to be carefully researched before making any final decisions. As you are searching for the right answer, keep these questions in mind:

How is your cash flow? As a new small business owner, you may be short on cash, so it will be less expensive to rent or lease a facility when you are just starting out.

For example, you can probably lease a building for about $4,000 a month, but if you were looking into purchasing that same property, you would need a substantial down payment. Examine your cash flow projections carefully and then make your decision.

“Honesty Is The First Book In The Chapter Of Wisdom”

When all is said and done, the best way for you to get as much out of your daily apartment and commercial real estate investment business is to use as much leverage as you can to get everything out of each day as possible. You can look at it this way. You can be highly successful without using leverage, but more often than not you will be spending every waking hour working on your business.

You know, 100 hours per week. I once read about a highly successful real estate investor in Chicago that put in over 100 hours per week. I don’t know about you but I do have other interests besides real estate. I have a family, friends, hobbies, etc. I choose not to work like a crazed man who will have a life expectancy of 45. So, if you want to go down that path that’s up to you. You may want to consider the path of having a career and a life outside of the career. If you do I have good news for you.

I currently work on my business less than 40 hours per week and I’m on top of the market – mainly as a result of leverage. Here are some simple tips I would give you to leverage as much as possible:

1. Hire all of the minimum wage tasks done for you. Your time is worth a lot more than you think. Everything that is not commensurate with your value needs to be done by someone else. Even if you think that you cannot afford it, it probably isn’t true. You cannot afford to spend your time on minimum wage tasks and responsibilities.

2. Use technology as much a possible. Use computer and database programs, fax machines, emails, etc. as much as you can. Just be sure that you’re in control of the technology, and it’s not in control of you. 99% of leveraging your time is truly as simple as the two steps above. Remember, if you want to succeed as an apartment or commercial real estate investor, you must be vigilant about using leverage as much as possible in all areas of your business. You will be very pleased with the outcome of these two simple steps…