Tuesday, January 06, 2009
Texas Investors: Beware Of SB 354 . . . Your Action Is Needed Now
With apologies to readers who are not Texas real estate investors. This is a critically important topic in Texas--it may be equally important in your state currently (as it is in New Jersey) or in the near future. So even if you're not an investor in The Great State, you may want to pay attention to this blog article.
Texas Investors:
You remember when we used to be able to do lease options and then the state legislature passed a law that essentially outlawed them? And when we complained--maybe a year after the bill was passed--state legislators said: Where were you folks when we debated this bill? None of you showed up! . . . which was not entirely true, of course, but the legislators made their point. If you want to be a player among the state's lawmakers, there are three "rights": You need to show up at the right times; you need to know the right people; and you need to write a check now and then!
I hasten to add that today's blog is not about writing a check. In Texas, we had only until early December (30 days before the legislature convenes) to write our campaign checks . . . now it's too late until June (at least 30 days after the legislature recesses--and by the way, in The Great State the legislature only meets every two years). So it's too late for the third right. We'll have to do with the first two!
In an earlier blog article I told you about the foreclosure protection law that's been introduced in Texas . . . it's S.B. 354. Senator Craig Estes introduced the bill with Attorney General Greg Abbott. This bill includes the 82% provision which exists in similar bills in nearly a dozen other states. Essentially if the bill is passed, investors will be barred from buying a home in foreclosure for less than 82% of the home's fair market value (which, by the way, the bill does not define). If passed, you won't be able to buy houses that are in the process of a foreclosure--and it's not exactly clear when that process begins--unless you're willing to pay at least 82% of FMV, which means you're going to lose money.
If passed, the unintended consequences for this bill will do more harm than good. It will mean that folks who really need to sell their house fast, and would like to get out from under it quickly, will not be able to legitimately sell to an investor who pays less than 82% of the fair market value--which Senator Estes said appears to be the ARV less repair costs.
How they came up with 82% no one knows for sure, and even Senator Estes said that might not be the right percentage. It's open to debate.
So, Senator Estes is the right person and now is the right time to take action.
Here's what you need to do.
1. Go to TexasOnline.com. This is an easy-to-use Web site that will help you communicate with your legislators as well as track S.B. 354 and any other bill of your choice. You can read the bills online, too, or print them so you can study them in detail.
2. Once on the site, in the right column, under that dashing photo of Gov. Rick Perry, you'll see a link for Texas Legislature. Click on that. By the way, if you click on the link I just provided you, you'll bypass TexasOnline.com, which you may not want to do (you won't see Gov. Perry's handsome photo, for one thing).
3. Now you're on Texas Legislature Online and there are a couple of things you need to do. If you don't know who your state representatives are, the site makes it easy for you to find out. On the right side you'll see a headline that says Who Represents Me? Enter your address and you'll get information about your federal and state representatives. You can then go to the respective representative's Web site. . . . If you know who represents you and you just want information about S.B. 354, or you want to track the progress of the bill, then look at the headline: Legislative Process. Under that headline there's a link for How To Follow A Bill. Very easy! If you want to receive alerts about a bill, you will need to subscribe to the site, and that's easy to do, too.
4. Now you know who represents you. Plus you know the sponsor's name for S.B. 354: Senator Craig Estes. You now know the "right" people. They need to hear from you! Send a letter--a handwritten note is great, or a letter on your business letterhead is fine, too--and explain that you have some "issues" with S.B. 354. First, it's an unnecessary bill. But second, if they insist on passing such a bill, at least they need to avoid unintended consequences that will create more foreclosures rather than fewer! Explain that you are a professional real estate investor and that if this bill is approved it will not only hurt your business, it will cause you to buy fewer houses and thereby rescue fewer people who are in distressed situations. Point out that you want an opportunity to discuss the pros and cons of the bill with your representative.
5. Don't want to write? Then pick up the phone and call! Whoever answers the phone, tell them you are a constituent and you live in the representative's district. Of course, make sure that's true! Explain why you are calling and say that you want the representative to return your call. Provide a phone number and a good time to call when you know you'll be available. State legislators are pretty good at returning calls to constituents. Remember, their interest is to get re-elected and they need your vote. Don't be timid about asking for a return call!
6. Plan to be in Austin on March 4, 2009 when HomeVestors is bringing together numerous investors and leaders of various investor associations around the state. All Texas franchisees are invited to attend, as are your investors. Spread the word! Details will be forthcoming. Several representatives will meet with us that day. Want more information about the March 4 event? Click here, send me an email, and I'll follow up with more information.
March 4 is the "right" time to show up. . .but it's not the only time. If this bill gets to a committee and there are hearings, you'll need to show up then, too (or at least some of us need to show up). That's why you want to track the bill's progress so you'll know when the hearings are scheduled. You then have an opportunity to voice your opinions in front of the committee considering the bill.
If you're a Texas real estate investor, it's critical that you take action now! The legislature is going back to work this month and they will be taking positions and sides on S.B. 354. Let's make sure our legislators don't throw another roadblock in the way of our businesss!
Monday, January 05, 2009
Why Become A Development Agent?
Twenty-four franchisees have become Development Agents at HomeVestors and no doubt there's at least another 24 coming after them.
And someone asked me: Why so few?
Hmmm.
I thought 50 would be about right for our franchise network, but this person, a member of our corporate team, said he thought just about every franchisee would want to be a DA . . . and should be.
And then he pointed out the benefits, including some that I had not thought about before:
1. Every Associate Franchisee is a new source of investment capital. Franchisees need more acquisition funds today; AFs will have some of that money!
2. Friends of AFs also have money that they want to invest in investment properties.
3. A franchisee who is only buying 2 houses a month (as is the average HomeVestors franchisee) has plenty of time to recruit and train AFs.
4. The franchisee who trains others to succeed in this business will improve his own business. Once he sees how his AFs are making money, he'll do a better job of making money.
5. More AFs in a franchisee's market add more advertising revenue to the market, helping to further establish the brand and generate more quality leads.
6. AFs reduce their DA's financial commitment to HVA by allowing the DA to reduce his advertising spend and by providing a quota credit for each house purchased.
7. What a great way to earn additional money and not go outside of the HVA system to do it. Of failed franchisees, a huge percentage failed because they looked to other businesses to make more money. Here's an opportunity to make more money while doing more of the same--working the HomeVestors system!
Pretty good thinking!
This fellow said he's heard numerous franchisees say they are waiting to become a DA until they are buying X houses a month--usually a big number, like 6 to 10. He said that's a mistake. First, the guy who's buying that many houses monthly won't have time to be a DA, unless he knows how to structure his business to free up some time. Plus, he said, even a franchisee who buys only 12 to 18 houses a year is way ahead of the person who's yet to buy his first property.
And this guy is not a member of our Marketing team, but our Operations team! Which all goes to show that he clearly understands what he's doing when he's out there helping franchisees.
Thank you, Larry Louwagie!
Sunday, January 04, 2009
Miraculous Double Novena Now Selling Houses! Who Needs The Credit Market?
This isn't news, but it's timely, especially for a Sunday blog article.
You know that St. Joseph is the all-time best-selling Realtor, don't you? And he's never collected a commission!
You know this story? You bury St. Joseph in the backyard of a house that you want to sell and, bingo, it sells in no time!
I didn't believe it until I tried it in 1994 when I was having trouble selling my house in suburban Philadelphia, the greatest city in the world. I had already moved to Dallas and bought a house, so I needed to sell my Pennsylvania property fast. That's when I decided to bury St. Joseph!
But I had to do it a couple of times to get it right. First time, I mistakenly buried St. Jude! I dare you to go to the store and see if you can pick out a statue of St. Joseph. Not so easy, my friend! And at the time, St. Joseph statues were so popular they flew off the shelves. I was in a hurry one afternoon, picked up what I thought was a good-sized St. Joe, buried him in my backyard just before heading to the airport, and for two weeks nothing happened. No wonder! I had buried the patron saint of impossible causes--not the patron saint of Realtors! (Actually, he's not the patron saint of Realtors and I hope I don't go to hell for suggesting that).
Next trip to Philadelphia I got back over to the Catholic shop and the owner confirmed that I had buried the wrong saint. She then helped me get a St. Joseph statue and told me that I really should get it blessed by a priest and that if I buried it I had to promise to dig it up (I said eventually I would) and then display the statue in my home. She also pointed out that it was important to bury the statue upside down and facing the house I wanted to sell. I think she was teasing about this, but she told me of a customer who buried St. Joe facing the neighbor's house--the neighbor's house sold and the customer's did not!
I am not superstitious about these things, mind you, but this time I did bury the statue upside down and made sure he was facing my house and within two weeks that house sold for the price I was asking!
Thank you, St. Joseph, and one of these times when I'm back in the greatest city in the world I'm going to sneak into my old backyard and dig you up!
So does this really work?
Well, it did for me, and I know it has for many of our franchisees, too.
Does it work if you're not Catholic?
I don't know. But why not convert and find out? Imagine, you sell your house and you set yourself up for eternity! That's quite a deal.
And what if you can sell multiple houses this way? Who needs the government to bailout the credit markets!
Now I'm going to tell you something that I'm not so sure I should. I'm already on the edge of blasphemy with this article, so giving you more information somehow doesn't feel right. My conservative Catholic friends are undoubtedly shaking their heads and praying for me. I've gone astray. It's not appropriate to bury St. Joseph, or any statue that depicts a saint. Even my conservative "publican" friends (i.e. non-Catholic, but Christian) and Jewish friends are concerned for me. And now I'm about to make matters worse.
I don't think this is right, and I don't feel good about it, but if you're really in dire straits and need to sell a house, there's now the St. Joseph & St. Jude Miraculous Double Novena House Selling Kit!
That's horrible.
What may be worse is that it's sold by TotallyCatholic.com, an otherwise reliable site for all things Catholic. (I could provide the link to their site, but I'm not going to).
Well, maybe it's not so bad. You see, if you want the Miraculous Double Novena House Selling Kit to work for you, you must pray the novena to St. Joseph and St. Jude--that's a nine day commitment, friend, and you can't miss a day!
Oh, you thought you just stick a a couple of statues in the ground and voila!, you get a sale? No, no, no, it's not that easy. It was that easy in 1994, but the Miraculous Double Novena requires extra work on your part. Hey, at least we're not asking you for a donation!
Actually, now that I'm reading the directions at TotallyCatholic.com, I don't know how I sold my house. The directions say that head up, head down, doesn't matter, which way it's facing doesn't matter, but it says you bury the statue in the front yard, not the backyard! . . . Well, the world has changed since 1994, so perhaps this ritual has changed, too.
I want to thank Ann Mullikin of ABC Homne Services in Richmond, VA -- she reminded me of this story and gave me two St. Joseph statues at our recent convention. I may use one of them to help out a neighbor that I don't particularly like! Let's see if I can get St. Joe to sell their house even when they don't have it listed.
Now that would be miraculous!
Saturday, January 03, 2009
Are You Willing To Let The Government Make A Fool Out Of You?
Perhaps you read, as I did, that our government is having "difficulty" tracking the bailout progress!
In the event you didn't read this, I'm not making it up. Check your January 1 newspaper. I read about it in, of course, the award-winning Philadelphia Inquirier.
It's where I also read that a recent review by the Associated Press found that after receiving billions in aid from U.S. taxpayers, the nation's largest banks could not say exactly how they were spending the money. Some wouldn't even talk about it!
Huh?
I also read this:
Government officials overseeing a $700 billion bailout have acknowledged difficulties tracking the money and assessing the program's effectiveness. . . . The Financial Stability Oversight Board, headed by Federal Reserve Chairman Ben S. Bernanke, discussed the difficulty of isolating the effects of the bailout program given the variety of policy actions taken by the U.S. government to support financial stability and promote economic growth.
Are you getting angry by any chance?
They're making fools of us!
The bailout program was designed to crack the credit clog and spur financial markets to lend money again!
Correct?
So we've given them the money and what has happened?
Nothing!
In fact, looking at our network's productivity in buys and sales in the last 60 days, things have gotten worse! The credit market isn't doing anything to end the housing woes . . . or if it is, our franchisees are missing the uptick.
Friends, the only way we're going to move through this financial disaster is to get behind it ourselves. You elected congressional representatives who sit in offices in the U.S. Capitol. It's time they hear from you. And you need to tell them that if they expect you to support them now and in the future, you want to know what's happened to your tax dollars. You contributed to that bailout money and you'll be paying for it for a long time. You want to know what's being done with the money. You are not going to stand for irresponsible bankers refusing to discuss how they've used the money, and you're not going to allow them to use it to pay for bigger salaries or bonuses. You want to know what's going on with the bailout money, you demand to get answers, and you insist that your representative get busy, find out, and let you know!
And don't let up, friends. Keep the pressure on Washington. Write to your Senators and your member in the House of Representatives.
I know I'm writing to an audience that's generally very vocal. If you sent me $10,000 to spend on advertising to generate leads for you and I told you I wasn't going to discuss how I spent the money, I don't think for a nano second that I'd have a chance of pulling that off without you storming my office. You're giving a lot more money to your government and they're having "difficulty" finding out what's happening. . . and you're going to accept that?
I don't think so.
Thursday, January 01, 2009
New Year's Day: A Good Day To Catch Up
I have at least a dozen blog topics to write about and haven't been able to get to them because . . . well, who cares. Been busy!
BUSY SIGNING RENEWALS
The last two days of the year I was busy signing franchise agreements--that's a happy busy! For any number of reasons, we had extended numerous franchise agreements during 2008, but we needed to bring them to a decision by year-end. All the paperwork arrived in those last couple of days and our Legal folks were extremely busy churning out documents and signature pages and I was happy to oblige with my pen and ink the deals. I won't list all the renewals here (because I can't remember them all and I don't want to leave anyone out) but among them was the DeClue family in St. Louis--RMD Investments. 2008 was a challenging year for most franchisees, including the DeClue family, and I'm delighted that Team HVA will include Team DeClue for another 5 years. Got a voice mail from Bob late on New Year's Eve afternoon telling me that he's excited to make a commitment for another 5 years. I'm excited about that, too!
BUSY READING EMAILS
How'd we ever do without email? On the other hand, how do we do it with email? It just never ends. Got to tell you, though, that I'm an email kind of guy. Makes sense for a high green low yellow, don't you think? Ken D'Angelo loved to work the phone. I don't. Or he loved the personal meeting. I don't! When I'm in a work mode, I want to produce results. What's the challenge or the question? Let's get to a decision. We don't need to meet, don't need to talk, don't need all the history and drama, just the facts, please, and here's the decision. Of course life doesn't work that simply, does it? A little more yellow goes a long way to attracting more people. . . . And I'm off the point.
Some of my more interesting emails in the last few days included:
Joe Polish. He's a carpet cleaner who has built an amazing business selling information. He's a supreme marketer. Even if you're not a carpet cleaner you can learn much from Joe. He's not as "polished" as I'd like, but, who am I? I'm one of Joe's customers, for sure. His genius marketing campaigns are always interesting. You can learn more here.
Eddie Gant. This guy is going to raise the bar again! He told me, "Monday morning (meaning Jan. 5) we kickoff our 'clear to close' program . . . it will be almost identical to Mitch Cohen's program in New York . . . the program is defined and structured and will be supervised by myself." Eddie promises to report results as they occur--and I'll be waiting and watching. You should be, too!
Mike Hambright. Relatively new HVA franchisee in Dallas. About 5 months into the business. Bought 7 houses in November and three more in December. Has sold 6 with a gross profit of $10k each after transaction fees and buyer commissions. Plans to buy 60 in 2009. Ambitious, yes, but he also works closely with an FSM. Being cautious not to get hung up with rehabs. Watch this guy because he'll be a star in our network.
J. Barry Watts. "There's a lot in my life that's not in order on this first day of 2009. But I face the New Year with great confidence because I'm in such good company." He had just spent time in prayer, and that focus was his 'company'. He continued, "I am grateful to know God." Me, too. And grateful to know Barry!
Cal Wilkins. Had sent him the draft of a letter that I plan to send to the Texas Attorney General to make our point about the proposed 82% of fair market value law--which would not be good for Texas real estate investors! "Very compelling scenario" he said in regards to my message to the AG. It's going to be a fight, and HVA needs to lead the charge. All Texas franchisees: Get ready for a battle. Franchisees in other states: The 82% proposal is coming your way, too. It's being debated currently in New Jersey.
David Hicks. HVA VP/Operations. "I have been editing the audios from the convention so we can get them on the Web. Good stuff!" Looking forward to getting it posted.
LaSondra Hubbard. Franchise Development. Announcing that Dallas franchisee Bobby Roan of Meadow Wood Homes has become the 24th HVA Development Agent!
Jason Killough. Possibly will end the year with 4 franchise sales in December. Won't know until we get the mail on Jan. 2. Not a big number, 4, but on the other hand, I bet 95% of franchise companies in the USA sold fewer than 4 in December!
BUSY NOT WORKING
I told myself, and Jo Ann, that I would not work every day during the holiday week. So while I've still got a dozen things to tell you, they will have to wait. I'm done for today. (Maybe).
Tuesday, December 30, 2008
Congratulations Alan Washer: Newest Double Diamond Member!
Say congratulations to Chicago franchisee Alan Washer . . . he has signed his third franchise agreement with HVA and becomes the third member of our Double Diamond Club! Cal and Robin Wilkins of The Real Advantage, Dallas; and Jeff Burrell, Jim Youngblood and Rich Drake, TRED Properties, are the first two members.
All, of course, are franchisees who Get It! and we're proud that they continue to bless our franchise network.
Tuesday, December 30, 2008
"I Was Moved To Tears . . . I Thought I Had Failed My Family"
Right before Christmas I heard from a franchisee who wanted to share his excitement about 2009 . . . but he also wanted to know if I had heard that he was "moved to tears" by my opening General Session speech in Las Vegas, where I told franchisees that if they hadn't set their goals at the 2007 convention they cheated themselves and their families in 2008.
"I had to leave the room because I was upset thinking that I had failed my family," he told me. "I didn't know if you had heard about that and if you did I didn't want you to think it was negative."
Well, no, I hadn't heard about that, but what's more important is that apparently he had heard enough from me to set his goals in 2008 for 2009. "I've been working on my goals. I don't want to rush through them and just put some things on paper," he elaborated. "I really want to think them through."
While I don't want to make any franchisee cry, I do want to help franchisees Get It! and to understand what it takes to build a successful business. I have evidence that goal setting produces results. It's irrefutable. If you set goals you'll achieve better results. Clear and simple.
Then how come so few people set goals?
And why is it that some people do not set goals, or they say they don't, and they're wildly successful?
Frankly, I don't know.
Has something to do with human nature.
I know a lot of successful people. Lots of successful franchisees at HomeVestors and elsewhere. Most of them are goal setters, and admit to being goal setters. If that's what it takes to succeed, why not set the goals?
It's worth the investment of your time to set goals. And if it saves you from cheating yourself and your family, it may also keep you from being moved to tears.
Meanwhile, if I helped this one franchisee, I'll sleep one franchisee better!
By the way, the best product that I know of for goal setting is Zig Ziglar's Strategies for Success. I mentioned it in my recorded interview with Zig, which I posted yesterday.
Monday, December 29, 2008
What's The Most Satisfying Career?
You might be surprised by what Zig Ziglar claims is the most satisfying career. During my recent recorded interview with him, that topic came up and I think you may be delighted to hear his story. By the way, the skills that lead to the most satisfying career are among the habits of the HVA franchisees who Get It! Watch the video for more information.
Sunday, December 28, 2008
Take Care Of Your Customers Or They'll Stop Buying From You!
Without condoning violence, can we agree that it's not a surprise that someone would be shot in a movie theatre for talking during a movie?
I know it's not right. I know it's horrible. But I do understand it.
Don't you?
It's a year this week since Jo Ann and I went to a movie, and we went only because a friend recommended a "must-see-it-now" movie. Prior to that, it had been three years without "movie night." Up until that time, we were at the movies at least twice a week.
But we stopped going because I was afraid that instead of being shot at the movies, I would be the shooter.
I can't tolerate people talking during a movie!
Simple as that.
So rather than shoot someone (and by the way, I do not own a gun), I decided to give up the movies. The way I see it, that's the movie theatre's loss. Two tickets, popcorn and sodas--two to three times a week--that's a chunk of money that I'm happy to keep (although we now share some of it every month with Netflix).
The way I also see it, it's the responsibility of the movie theatres to control the environment at the movies. But, of course, they're not willing to do that because--well, they might get shot!
Or they'd get sued for infringing on the rights of someone who believes that because they live in the greatest country in the world they have the right to talk when and where they want.
I'm particularly ashamed that such a shooting occurred in the Greatest City in the World (aka Philadelphia), the City of Brotherly Love. On the other hand, wouldn't you expect it to happen there? The city that's never been forgiven for throwing snow balls at Santa Claus?
I'm ashamed that it happened there, but it in no way diminishes my love for the city. I understand the frustration of the shooter. And, by the way, he did ask the family sitting in front of him on Christmas Day to stop talking during the movie. Again, the shooter was wrong, but I do understand why he did what he did. He'd want me on his jury!
Maybe now the move theatres of America will do more to protect their customers. . .or, perhaps more people will give up "movie night" and teach the theatre owners a lesson: Take care of your customers of they'll stop buying from you!
Friday, December 26, 2008
What Does Zig Ziglar Do In Challenging Times?
I recently visited with Zig Ziglar, now 82 years old, and still motivating the masses. The Ziglar Corporation begins each week with devotions at 8 a.m. on Mondays. The Monday before the HVA annual convention, I sat down with Zig after devotions for a recorded conversation that I had intended to air at the convention; however, we were not able to fit the video into our programming, so I saved the conversation to post on our Web site. What does Zig do in challenging times? What does he suggest you do? Find out when you view the brief video.
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