Feb. 1, 2007 Edition

Buyer Strategy Increases Contracts For Bartelli Properties

New motivational commission structure pays off
By David Hicks

David Hicks

Ben Ahern with Bartelli Properties, San Antonio, TX, has a unique perspective on motivating buyers: "We bought into the importance of a higher appointment-to-call ratio," he explains. "But, as a buyer myself, I realized it is hard to get the buyer past the question of 'Is it a deal or not?' and just run the appointment whether or not there is equity. Our goal was to remove the question of equity from the buyer's mind."

His solution: Pay the buyer per appointment, regardless of whether the appointment results in a contract. This removes any hesitation the buyer may have about going on an appointment.

The strategy also fits in well with the concept of Short Sales. "Short Sales have given [us] another reason to go on every appointment," says Ahern. "We can convert anything into a deal, so there is no reason not to go on the appointment."

Bartelli Properties' December results provide a good example of the success of Ahern's strategy. They only received 29 leads -- a slow month for leads. But, with the new emphasis on going on appointments, the buyers actually went on 25. The result: an astounding nine contracts, including three Short Sales!

Ahern's new emphasis is on buyers digging up their own leads. "I want them to pay attention to the house next door [to the appointment], and to talk to the neighbors. I want the buyers to ask for referrals," he explains. As an incentive, buyer-generated leads earn double the commission.

"What I have really enjoyed is the buyers' attitudes," says Ahern. "Now . . . they are excited to go on every appointment."

HVA Heats Up The Scene In Miami

John Hayes speaks to DREIA, and HVA draws interest at expo
By Jason Killough

Jason Killough

Although much of the buzz in Miami has been about Super Sunday, the city provided a flurry of activity in January for real estate investors, and for HVA.

On January 17, HVA President & CEO John Hayes spoke at a Dade Real Estate Investors Association (DREIA) meeting to a packed room of approximately 200 area real estate investors. His topic: Why Real Estate Investors Fail, And What You Can Do To Succeed! He gave the audience an overview of HVA, including the number of houses we purchased and sold in 2006, and the fact that we sell thousands of homes to investors. He also encouraged attendees to take the Four Strengths Personality Profile as a way to determine if they have what it takes to be real estate investors, and urged them to sign up for HVA's free Investor E-newsletter -- a call to action that attracted several dozen new subscribers. Dr. Hayes also promoted NARHRI, and encouraged the investors to join.

Following Dr. Hayes' presentation,franchisee Mauricio Duarte of Ultima Investments sold a house to an investor. "Right after John's presentation, one of the investors approached me. I told him about a house I had for sale. The next morning, he called me and I assigned him the house. I would never have known of this investor if I hadn't attended the DREIA meeting," Duarte said.

All seven HVA Miami franchisees attended the DREIA meeting. Afterward, the Ad Council signed up for DREIA membership so that franchisees can start to network and sell houses to investors at future meetings. The Council also registered to exhibit the following weekend in a DREIA sponsored investor expo in South Florida.

The next evening, Dr. Hayes and members of the corporate team met with the Miami Ad Council for a working dinner. The Council set its projections for property closings for 2007, and the group strategized about how to achieve a minimum 20% market-share goal.

With all we had going on during our Florida trip, we returned to Dallas energized and excited about what we feel is going to be a great year for HVA in South Florida!

. . . Jason Killough is HVA's director of franchise development. Contact him at 972.761.0046, ext. 187.

NARHRI Legislative Alert

Lease options scrutinized at the state level
By John Grant

John Grant

The National Association of Responsible Home Rebuilders and Investors (NARHRI) expects that a measure will be introduced in Arizona to make the "82% Rule" for lease-option transactions the law. This would require an investor who is seeking to rescue a homeowner from foreclosure through a lease-back transaction to purchase the property for at least 82% of its market value. While lease options are a proven formula that allows people to remain in their homes and not suffer the ills of foreclosure, the practical reality is that the 82% Rule destroys profit margins for investors when they could buy the same property, post foreclosure, directly from the bank at a cheaper price. So, while lawmakers' good intentions are to save homeowners from fraud, their approach increases the likelihood for foreclosures to rise.

This is where NARHRI's educational mission can make a strong impact. And much like the progress made with Colorado on an alternative measure that was passed last year with NARHRI's support, we can make sure that the interests of homeowners and ethical real estate investors are equally served.

NARHRI has created a White Paper on this issue and will be distributing it both in Arizona and to state attorneys general at various events across the country this year. NARHRI has the support of AZREIA, which has advocates working at the state level. The organization is hopeful that, since it anticipated this action and began working proactively early on, it will achieve a resolution acceptable to all parties.

Where progress seems even quicker is in the state of Nebraska, where legislation similar to Colorado's Foreclosure Protection Act is being considered. Sponsored by the Chairman of the Banking Committee, and with no mention of the 82% Rule, the fact that legislation is being considered is a good indicator that NARHRI's version is the lead bill.

NARHRI will keep its members and supporters updated on activities in Arizona, Nebraska, and other states in which it is operating this year. By working with local REIA chapters and investors at the state level, and with the support of HomeVestors' franchisees, we can continue to shift the tide in favor of the industry.

This recent legislative activity once again points to the need for a unified national legislative campaign. NARHRI's efforts in one state apply to actions in other states, and we need to be in as many states as possible to fight the efforts by some to arbitrarily ban certain real estate transactions. I would encourage all investors to join this effort. For those wishing to support this effort, please visit www.narhri.org and join NARHRI today.

. . . John Grant is the executive director of NARHRI. Contact him at 202.607.7580