Real Estate is a Business. Treat it like one.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Broker Bryant www.CentralFloridaShortSales.com Earlier today I read a post byJoshua Pettus titled “I Quit!”, “I Need a Real Job!”, “I’m Broke!”, and Other Things I’ve Said Recently  A very well written post pretty much pouring his heart out. Give it a read.

Anyway, after reading his post I dug back through my archives and dug out this article I wrote in August 2007.  My advise was good back then and I stand by it today. Maybe it’ll help somebody.

First, it’s important to remember that Real Estate is a business NOT a job. When you are a business owner your job is to find a way to make things happen. Chasing money is what we do. If you don’t have any then your job is to find some. Hopefully it will come from closings. If not? Well here are some ways to generate cash flow.

  • Find a partner. This can be another REALTOR® that wants to team up so you can pool your resources. Or maybe a family member who is willing to back you for a small return on their investment. You can’t operate a business without capital. Go find some.
  • Use an equity line or credit cards. Have faith that you are good at what you do and will be able to pay these loans back once you get rolling.
  • * Do some property management.
  • * Do BPOs.
  • *Get a part time job or jobs that leave your days open to practice real estate. I used to wait tables AND drive a taxi. At the same time.

Do whatever you need to do to get capital for your business. With out it. You will fail.

Secondly, get to work. If you are sitting at home or in the office moaning about how bad business is, you will fail. Get off your butt and get to work. Here are some things you can do that don’t cost anything but time.

  • Attend every function you can at your Board of REALTORS® to network and gain knowledge.
  • Join an investment club. What better place to meet investors.
  • Utilize ActiveRain and Localism to their full potential.
  • Solicit for listings. Folks, I have on numerous occasions, given you my expired letter and suggested you use it, everyday, for every expired and withdrawn listing. How many of you have? Or is it still on your list of things to do? While you’re procrastinating, I took several listings last week, that were all from my letter. And turned down several others. And I’ll do the same thing this week, the next week and on and on and on.
  • Hop in your car and go visit some yard sales this weekend. People have yard sales because they are getting ready to place their home on the market. Say “hi” and give them a card. And if you see any FSBOs working in the yard while you are out, stop and strike up a conversation.
  • Visit a few Human Resources departments in your area. See if they will let you hold a Buyer’s seminar. Do the same at the library and the community center.
  • Go view the listings in your market area. Leave your card.

Folks, my point is GET BUSY!! Activity creates opportunity. Get into your community and start striking up conversations, passing out cards, passing out flyers and anything else you can think of. Go stand in front of the grocery store and say “hi” to everyone that walks by. Go to the self service gas station and pump gas for others with a big smile on your face and a card in your hand. I’ve personally done ALL of these things.

So there you have it. A few simple and free things you can do to generate business and cash flow. They aren’t difficult. It’s just requires attitude and motivation. Success is a decision. Failure is a lack of forward movement. It’s your choice. So what’s your decision? Are you going to turn your “to do” list into a “job completed” list?

Do you need a new Broker?

Want to find out more? www.TTRealtyNet.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

If it walks like a duck…………………

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Even the name sounds contradictory. Dual Agency. How can this be achieved? How can a Realtor, in all honesty, work for two Clients on opposing sides of a transaction? How can you place your Client’s interest first, when there are two of them, one trying to get the highest price possible and the other trying to get the lowest price possible? The concept of Dual Agency just doesn’t make sense to me, at all.

The State of Florida got smart in 1997 and made Dual Agency illegal. We are now presumed to be Transaction Brokers unless disclosed differently. I discussed this in a previous post, so won’t rehash it here.

An Agency relationship creates a fiduciary between the Agent and Principal. Take away the fiduciary and there is no Agency. In my opinion, when entering into Dual Agency relationship, this fiduciary must be modified, to the point of no longer existing, in order to assist both Clients equally. A fiduciary is NOT equal. Here lies the problem. Dual Agency, by it’s very nature, is not an Agency relationship. Below are some excellent links that delve into the problems with Dual Agency a little further.

http://www.realestatelawyers.com/Dual-agency.cfm

http://www.realestatejournal.com/columnists/housetalk/20031010-barta.html

http://realtytimes.com/rtapages/20050208_dualagency.htm

So what do we do? As Realtors we are obligated to “protect the public.” Our Code of Ethics is built upon this premise.

In my opinion, Florida has started down the right tract. Be an Agent, for one party and one party only. If you must work for both parties, then do it as a Transaction Broker. Personally, I would like to see it taken a step further and have no Agency relationship in Real Estate. Always, be a Transaction Broker. I believe this is a truer representation of what we really do. We are “facilitators.  If it walks like a duck…………..

Increase Your Business And Income By Working Less.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Broker Bryant www.CentralFloridaShortSales.comChristine Schneider wrote an article titled “When All is Said and Done”If you haven’t already take a few minutes and pop over and read it. It’s basically about time management and how we can become overwhelmed if we don’t take some down time for ourselves.

I couldn’t agree more with what Christine is saying. I have always been excellent at managing my time and setting boundaries. Here are my thoughts on the topic and an outline of what works for me.

First I want to give you some facts:

  • In our business we will NEVER be caught up.
  • There are NO real estate emergencies.
  • Setting boundaries and working less will increase your business and your income.

Once you get your head around these things you can then set a schedule that works for you and your life. For me:

  • The first 2 hours of everyday belongs to me. I use this time for meditating and taking care of my mind and body.

  • I rarely make appointments after 2pm

  • I only work on Saturdays if I have an appointment. And I’m very selective who I give this time to.

  • I never work on Sunday.

  • I cut my phone OFF at 8pm every day.

As long as potential customer/clients know these things before they decide to hire me we never have any issues. If they can’t or won’t work within MY boundaries then I refer them out because I know our relationship will not work out. They will cost me time…..

…..time that would be better spent on folks that appreciate my boundaries. A better fit means a better working relationship. Which of course translates into getting the job done in less time. It’s simple.

The key of course is to find out what works for you and your business. So spend some time over the next few days and figure out what your boundaries need to be. I promise you it will take your career to the next level. What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

It’s scary out there!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I participate in another Real Estate forum and some of the questions that I see make me wonder if some Realtors are in way over their heads. Here are a few examples:

1. If I do a lease/option contract when do I get paid?

2. As a Sales Associate can I represent a Buyer in a business transaction? (if you have to ask the question, you shouldn’t be doing the deal)

3. The transaction didn’t close on time. Can I file an Ethics complaint against the other Realtor? (my personal favorite)

4. I’m going on my fist listing appointment. Besides the “purchase contract” what other forms do I need?

5. My Broker’s not giving me any leads. Is this illegal?

Now, don’t get me wrong, I am not faulting the Realtors. In fact I am glad they are asking the questions. There are no stupid questions only stupid answers. But this is scary! Where’s the training? What are the Broker’s doing? How can they allow Realtors without the basic knowledge to conduct business, loose on the public? And why do these Realtors have to ask these questions on a forum? Where’s the Broker?

My belief, is that, the general public when contacting a Realtor, should be able to assume, that the Realtor has the knowledge required to conduct business. And that they are able to “protect the public.” After all, that’s what Realtors are supposed to do. It’s scary out there! What say you?

Wah! wah!…..and then complain about it! Today I want to talk briefly about co-brokes and the “ole’ 50/50 rule”. In my area it is quite common for short sale listings to have verbiage in the MLS remarks stating that what ever commission is received will be split 50/50 with the selling agent. Then of course they offer a ridiculously high co-broke so the uneducated Buyers agent believes he will get that x% co-broke when most of us know the short sale lender will rarely allow more than y%.

I don’t handle my listings that way. I offer z% percent as a co-broke and I guarantee it. No matter how much the lender allows me to get paid I honor the co-broker offer. I do this because I completely disagree with changing co-brokes after the Buyers agent has already shown and negotiated a deal on my listing. In my opinion it’s playing dirty pool.

BUT….I’m also not an idiot. I offer a co-broke that is in line with my market conditions but one that still leaves me a little bit of room for play. This means that if the lender allows y% I end up making more money than the selling agent. If the lender reduces the commission I make less than the selling agent. It all works out in the end and I feel it’s a fair way of doing business. There are no surprises for the selling agent. They get what’s offered in the MLS with no exceptions.

Today I had a selling agent upset at me because they saw I was making more than them on the HUD statement. He wanted to know why? I explained my company policy to him but he just didn’t get it and started going off about the 50/50 rule. Finally I just had to tell him that what I get paid is really none of his business. He hung up on me.

So I sent him this email:

Dear agent,

I want to clarify the co-broke on my short sale listings. It is always z% Even if the bank comes back and reduces the commission to h% or j% I still l pay z% to the selling agent. Your commission is guaranteed.

In fact I am the only broker that I know of in this area that does not reduce the co-broke when the lender reduces the commission on a short sale. It was z% when you showed the property and it’s still z%.

My commission agreement is between me and my seller. I’m sure if I were getting less than you there would be no issue. On this particular short sale the lender allowed me to get y% so I made out better. That is not always the case.

There is no such thing as 50/50 rule. That is a figment of your imagination.

Thank you for your hard work with getting this transaction closed. I hope we can do more in the future. End of email.

Is this really that difficult to understand? What say you?

Do you need a new Broker?

Want to find out more? www.TTRealtyNet.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

I hate open houses and I’m sticking to it!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I hate open houses! There I said it. It's out in the open and I'm not taking it back. I don't do them and I'm not starting. My Sellers know this. I tell them this at time of listing. "I will sell your house but I will not do an open house, ever."

Well, I had two of my Sellers call me today wanting to do open houses. So being the good little Realtor that I am, I said no. Now don't get me wrong, I like pleasing my Sellers and I like being agreeable when they ask me to do things. But I'm not doing it! I'm going fishing. It's Saturday and the fish are biting. So what do you do?

Being as how both of these Sellers are long time customers, we compromised. They are having open houses. Yup, you heard me right. They are having open houses. One is having a yard sale and the other is home all weekend and wants to do it. So, I stopped by today and dropped off Open House signs, buyer sign in sheets and wished them good luck. I told them if they should happen to find a Buyer for their house, who is not working with another Realtor, I will give them a discount on the commission. They were thrilled! They can use the money and thought this was an excellent idea. They are really getting into it now. I told them I would be available by cell phone if they need me and I have arranged for my Mortgage Broker to be available for pre-qualifications if necessary. I hope they find a Buyer. I hope I can give them a commission rebate. I hope they don't ever ask me again. I hope I catch the big one!

Anyway, I have been thinking about this all day and decided I may offer this to my Sellers. After all, we are a team and who knows the house better than the Seller. Obviously, you do want to make sure you have a strong relationship with your Seller and they have to promise, no negotiating. I like it. I like it a lot. They can work. I can fish. And maybe we will both get paid.

So next time a Seller ask for an open house, just tell them…….. "I hate open houses and I'm sticking to it!

Short Sale Agent Training

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

www.ShortSaleSuperStars.com

 

We now have 1,300+ members of www.ShortSaleSuperStars.com  who are ready to help you master Short Sales. And if that’s not enough…….

 

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It’s time for you to get the expertise you need, because short sales are becoming extremely common. You don’t want to be caught feeling unsure when a client asks for one.

 

That’s why we offer you three different training solutions, each of them custom-made for agents just like you. These training sessions take you from complete confusion to calm confidence in no time flat – and you’ll be able to turn that new knowledge into perfect closures immediately. 

 

Short Sale Agent Training

 

This five-part Short Sale Agent Training webinar with short sale professionals Bryant and Wendy takes you through 8 full hours of short sale training, walking you through each step of a short sale so you know exactly what to expect and how to deal with problems that may arise. Click the button above to order $97

 

Click to Buy

 

Bryant and Wendy interview a short sale negotiator from one of the major lenders to get you the insider secrets that make your short sale a huge success. If you want to come out ahead in a negotiation, ask the negotiator – and we did just that, so we could give you that insider info. $27

 

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First short sale? Use this handy Short Sale Listing Package, and you won’t leave anything out next time. Everything from the short sale submission letter to a listing checklist, as well as anything else you‘ll need, all in one tidy package so you don’t have to stress. Just check it off, and close the deal. $27

 

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Copyright © 2010 REGrow, LLC | All Rights Reserved

 

 

Does that 50 cents have to be on the HUD?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I just love final walkthroughs! Why is it that Buyers and their Realtors sometimes try to spoil the elated feeling I get, knowing that we finally made it to day of closing?

I get the call this morning, telling me they did the walkthrough and everything is OK, except for the hole in the living room wall. What? A hole? How can that be? I was just in the house last week and it was fine. No holes! I don’t want to hear about holes two hours before closing. I mean the house is vacant. No one has been in the house but the appraiser. Then they spring the big one on me. “What’s the Seller going to do about it?”

Personally, I think that’s a pretty good question. “What’s the Seller going to do about it?” Well, my answer is “I don’t know”. I am still trying to digest the fact that there is hole in the living room wall. Well I got lucky, the other Realtor had a call beeping in on him and decided to take it and call me back.

So, I get myself out of bed (not sleeping mind you, but diligently “working” on reading all the ActiveRain posts from last night), anyway, I get myself out of bed, hop in my SUV and burn $10.00 worth of gas to go check out the hole in the living room wall. Now I’m a pretty observant guy and would probably notice a hole in the living room wall, but I don’t. No hole. Well, maybe they meant the family room. So I go look and again, no hole. Wait a minute, what’s that? Let me see, if I get down on my knees and squint just right I can see a tiny indentation in the wall about the size of my pinky fingernail. This my friends must be the culprit. The all elusive hole!

I call the Realtor back and tell him I have been at the house to look at the “hole” and asked him if he had actually seen it, or did he just allow the Buyers to go over by themselves to do the walkthrough? Do I need to even tell you his response? Of course he hadn’t seen it! It was too far for him drive to so he just gave the buyers the code so they could do their own walkthrough! The Buyers told him there was a hole in the wall, and asked, “What was the Seller going to do about it”. Anyway, I remained calm and politely told him to show the Buyers the definition of “hole” in the dictionary and that we would give them compensation of 50 cents. After all that, the Realtor told me to not worry about it, that he would take care of the Buyers.

I tell you, you got to love this business. The things people try to get away with. And the Realtor……….well that’s good material for another post.

The Moral is: Never, ever, take the other party’s, to a transaction, word on anything. Check, double check and check again. Look out for your own customer’s or client’s interest or that “hole” may be in your wallet.

By the way………..Does that 50 cents have to be on the HUD?

Newbie Realtors Beware!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Recently I have heard several Realtors commenting on the influx of newbie and part time Realtors and why Brokers should not hire them as they are cutting into the seasoned professional‘s business. The general consensus seems to be to concentrate on our own business and let the market sort itself out. I agree with this. However I think we are missing the real issue. In my opinion the real issue is not how these inexperienced Realtors are affecting our business but how they are jeopardizing the Sellers and Buyers that are hiring them. A Seller or Buyer hiring a Realtor to help them, with what may be the single largest financial transaction of their lives, should be able to assume that a licensed Realtor is qualified to handle their transaction. This as we all know is not the case. Being licensed and being a Realtor does not necessarily mean you have a clue to what you are doing. To me this is very scary. I agree that everyone was new to the business at one time and must start somewhere. I do not agree that learning the basics of Real Estate should be a trial and error affair.

Brokers are obligated by law to train and supervise their Realtors. This is not a choice, this is law. At a minimum, new and old Realtors should be able to properly complete a legible and binding purchase contract and listing agreement. They should be able to prepare an accurate Market Analysis and be able to justify market value to their Sellers and Buyers. They should know to who and when to provide the proper Agency Disclosure. They should be able to intelligently discuss financing, appraisals, inspections, repairs and the closing process. These things need to be taught and learned prior to conducting the services of Real Estate. It is the Broker’s responsibility to make sure all Realtors are receiving this very minimum amount of training prior to holding themselves out to the public as being a professional capable of handling their Real Estate transaction. To be any less qualified than this is probably illegal and definitely unethical.

To be an experienced Realtor comes later. This IS learned by trial and error. Learning how to handle closing issues, negotiating techniques, people skills, preparing marketing plans, having a feel for a deal, being able to confidently counsel your customer/clients and many other skills that can only come from being involved in transactions. Hopefully, the more deals you do the more experienced you will become. One thing for sure about this business is you will never know it all.

My advice to new Realtors is to take as many training classes as you can. Learn the basic skills required to conduct your business. Read everything you can related to Real Estate. Find a Mentor. Hook up with a great mortgage Broker. Take the GRI classes. Take a seasoned Realtor with you on your first listing or buyer appointment. Have your Broker review all your contracts prior to presenting them. Read and understand the purchase contact including the standards. Practice preparing a Market Analysis before your first listing. And most important find a Brokerage that offers training. You can always switch to a higher commission split office later once you know what you are doing. Treat this business as a profession and dedicate your time to learning and you will find this a very rewarding business to be in.

Any thoughts on this?

By the way the message title of this post is to get your attention and is in no way an attack on new Realtors. My comments apply to all Realtors who do not conduct their business in a professional manner

BB and TLWHere’s a secret about expired listings. Expired listings are  almost ALWAYS over priced. That’s why they are expired.

E$pired listings are without a doubt my favorite type of lead. These Sellers have already decided to sell and they’ve already decided to use a broker. 

The only hurdle left is to get the price right. That being the case it’s important to establish quickly if this is possible or not.

A CMA (Comparable Market Analysis) for a property that has expired should be short, sweet and to the point. No need to go overboard. A good technique is to arrive at a “range” of where you know the property will sell.

The idea is to make sure the seller is willing and able to make the proper price adjustment BEFORE you spend a ton of time arriving at a more precise price.

Why? Well…. the property was overpriced. This means either the seller was unrealistic about price or they were given bad advice by an inexperienced agent. The first seller will be more difficult than the second.

An example would be an expired listing that was priced at $500,000 that’s worth $325,000. All you really need to know is that the property should sell in the $300,000 to $350,000 range.

If you give the seller this price range you will know almost immediately, by their reaction, if you have a chance of getting the property priced right or if you just need to walk. If  you feel the seller is receptive to pricing right then get serious and do a full blown analysis.

Good listers can establish this stuff during a phone call. No need to set an appointment unless we know for a fact we can get the price right. I know my time is valuable. Is yours?

Do you need a new Broker?

Want to find out more? www.TTRealtyNet.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.