Five Keys to Successful Delegation

You are overqualified for most of the things you do in both your personal and professional life. If you are doing all the work, you will never reach your full potential. Here are five keys to help you delegate effectively, and achieve the success you desire:

1. Hire people who are more gifted than you. Their strengths should be your weaknesses. Oftentimes people (1) hire others just like them, and (2) hire others cheaply because they haven’t made the decision that an assistant or new team member is worth the money. Hire the right people today so you won’t be sorry tomorrow.

2. Follow the 30/30/30 System for maximum empowerment. When you bring an assistant on board, follow this plan:

For the first 30 days: (1) Let them shadow you (i.e., watch you do what they will one day be doing), (2) Highlight when you do what they’ll be doing, (3) Answer their questions often, and (4) Test their knowledge daily.
For the second 30 days: (1) You spot shadow them (i.e., watch them as they perform different tasks), (2) Coach and train them in key areas (to do otherwise is to set them up for failure), (3) Ask them questions daily, and (4) Test their knowledge often.
For the third 30 days: (1) Coach them daily, (2) Train them weekly, and (3) Empower them permanently.

3. Be more concerned with outcome than process. Know that different people with different talents can get you what you want through a different process than the one you want them to have. Make a habit of telling people specifically what you want them to do and how you want the task to look when it is done. Then, let people do the task the way they want to do it, within the parameters of efficiency and consistency.

4. Build emotional equity by praising as much as you prune. Praise them publicly; prune them privately. It is really important to praise people publicly when they have done a great job for you. However, if you need to prune people, take care to do it privately so they won’t be embarrassed in front of their peers.

5. Consistently surprise them with value and they will constantly delight you with performance. Whether you reward team members with a surprise gift certificate, trip, or day off, the surprise factor is huge. These rewards don’t have to happen often, but make sure they happen often enough. You will be delighted with the performance you get from people as a result.

Reach Ron Siegel at Ron@mbehoa.com or (800) 306.9130

Build Your Business by Blogging

Did you know the word blog was recently the most looked-up word in Merriam Webster’s online dictionary? Clearly, people are interested in blogs – but why?

The word blog is short for Weblog, and refers to a website that contains an online journal with views, reflections, comments, and often hyperlinks provided by the writer. A blogger is the one doing the writing, and blogging is the act of writing itself. Blogs are utilized for anything and everything: breaking news and commentary, business, personal journaling, educational resources, and political observations.

Quickly becoming a mainstream method of communicating, blogging is a dynamic, flexible tool that requires minimal technology know-how and little-to-no cost to maintain. In fact, many in the business world are now using blogs as an essential part of growing their network. Where a website is fairly fixed and can become somewhat boring, a blog allows you to become personal with those you want to do business with. In this way, bloggers are more visible and can gain credibility as experts in their field. Blogging is a way to differentiate yourself from the competition.According to Michael Sippey, General Manager of TypePad, people read blogs to find out the point of view and connect with the writer. This is key to those in relationship businesses, as a blog can take an informal tone yet still pass along valuable information to the reader. Your passion and knowledge will translate into loyalty from those who read your blog. This, along with your passion, is what will sell your services. And as blogs are becoming more common in the business world, more customers are using them as a shopping tool. They want to feel connected to the professionals that will help them with real estate, financial, and legal needs.

 

So you want to build your business by blogging? It’s easy and effective – here’s how it’s done.There are two main components of a successful blog: interesting content and getting the right people to look at it. Most people in sales are good at talking. That’s why they are good at sales. Don’t get hung up about the writing being “perfect.” Use your own voice in your blog, describe your specialty, products and services and how you can benefit your customers. Post tips that are valuable to those you are trying to attract to your blog. You can include success stories and testimonials from clients. Post links to articles you liked (or didn’t like) with a few comments. Your blog can also contain pictures, audio, PowerPoint and Excel files, video, and links anywhere on the web you want people to go.

 

To get your blog read, invite everyone you speak with to visit and comment. Make sure every marketing piece you send out has at least one line inviting them to visit your blog. Add the blog web address to your business card, and to your e-mail signature. Put a link on your web-site. To help increase return traffic, readers can even subscribe, and then be notified when you have a new post.

Search engines like blogs, and you will notice your rankings improve as you increase traffic to your blog. You can also register your blog for free with many blog-specific search engines. Post comments on other blogs related to your field and your comment will link back to your site. The more you can utilize this cost-effective tool, the quicker you will see an increase in clients and sales.www.WordPress.com and www.TypePad.com are two well-established blogging services that can quickly and easily walk you through the process of setting up your own blog, and both offer many tools to make your blog successful.

 

Please let me know if you need any quotes, comments, or information from me to post on your new blog. I’m invested in your success, and here to help you every step of the way!

Reach Ron Siegel at Ron@mbehoa.com or (800) 306.9130

Interest Rates Going Up? Supply and Demand for Mortgage Backed Securities

The Federal Reserve Bank of New York bought $2.599 billion in Treasurys on Wednesday. Dealers submitted $13.087 billion in debt maturing between 2021 and 2026 to the Fed. When the Fed last bought debt with those maturities, it purchased about $3 billion. The U.S. central bank has purchased more than $250 billion of the $300 billion in U.S. debt it promised in March to buy in an effort to keep borrowing costs, particularly for companies and homebuyers, affordable. Fed policy makers said last week they will slow down purchases to finish the buybacks in October, a month later than previously anticipated. Ten-year note yields , which move in the opposite direction of prices, remained lower on the day. The yield fell 7 basis points to 3.44%, the lowest in more than a month

WIth the Fed purchasing less and planning to finish their buybacks in October, obviously demand will diminish.  With diminished demand, The Principles of Supply & Demand tells us prices should drop.  Simple math will tell us when Bond prices drop the RATE goes Up.  How Much? Good question, but I thing it would be safe to assume we can expect at least a 1/2% or more rate increase.  If you are considering either refinancing or purchasing a home, you need to know the facts in order to make the best possible decision for you and your family.

Reach Ron Siegel at Ron@mbehoa.com or (800) 306.9130

Obama is in Office – It is Time to Take Advantage of the Recession and Refinance

Have you thought about getting a new mortgage recently? If this is you, now is probably the best time to do it. The government has created programs recently which mean you do not have to pay so much money every month toward your mortgage. This will leave you with spare cash to spend on whatever you want.

If your current mortgage rate has not changed recently, it is highly probable you are paying too much. Mortgage rates change a lot more often than you realize, in fact your rate could have decreased by as much as 2%. This could mean you could have thousands of dollars in extra cash to spend on anything you desire, instead of just giving it to your bank.

There are now numerous companies that can assist you in discovering who has the best possible mortgage deal for you. Moreover these services are absolutely free. Why should you be paying a higher rate when you could be saving cash by paying less?

These new services that are available mean that many people who have a house are saving money in interest fees. The bigger your mortgage is, the more cash you could be saving. People who have 30 year long plans have been able to save enough money to renovate their houses and go on vacation. They no longer have to stress about mortgage repayments.

If you think you are paying too much interest on your mortgage you can discover absolutely free if you are paying too much please let us send you a FREE Total Cost Analysis to see if you should be refinancing under one of these new plans. 

The Short Sale

 

The Short Sale

 A Unique Selling Proposition for Real Estate Agents

 

 

 

 

 

While a short sale may be a last resort for many homeowners facing foreclosure, it also represents a great opportunity for potential home buyers and real estate investors. This article is designed to help answer a few basic questions about the substantial risk and reward involved in this extremely complex and often drawn out process.

What is a Short Sale?

 

A short sale is a legally-binding agreement to allow a home to be sold for less than the amount that is owed. And, while short sales are not by any means common or easy, because of increasing inventory levels and foreclosures in some parts of the country, lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages. For potential home buyers and real estate investors, a short sale also offers a great opportunity to purchase property at a significant discount.

However, don’t expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender’s loss mitigation department.

Of course, lenders are not looking to bail out “flippers” or other borrowers who simply overextended themselves. In most cases, a borrower must have suffered a serious financial hardship that directly caused him or her to default on the mortgage: the loss of a job, a serious illness, or the death of a loved one.

A written declaration and supporting documentation demonstrating financial hardship will definitely be required by the lender. This may include pay stubs, tax returns, and liquid asset statements, among other documentation.

Key Considerations to Keep in Mind

It’s important to note that the difference between what is owed on a mortgage and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges don’t simply disappear in a short sale. In the past, this deficiency or “canceled mortgage debt” was considered taxable income to the borrower. However, thanks to the Mortgage Forgiveness Act of 2007, the tax burden for qualifying canceled mortgage debt (as high as 35%) for primary residences only has been temporarily waived until the end of 2009.

 If there are multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale. This is why an experienced real estate agent and mortgage professional become so valuable to this process.

Call me. Let’s discuss how we can market short sales and other foreclosure alternatives to potential buyers and sellers as a unique selling proposition that clearly separates us from the competition.

Present With Power

  

Present With Power Pointers from MSS Faculty Member Jodee Brydges Things to Remember:   · Start small and grow your audience  · Practice! Practice! Practice!   · Choose a topic you are passionate about and become the expert on that subject   · KEY POINT: You present one-on-one every single day in your business! Polishing Your Presentation Skills:   · Attend Toastmasters.   · Take a speaking course at a local college or community center.       · NOTE:  If you don’t want to take a full semester college course, some colleges         offer community education programs with shorter-duration courses.   · Practice for your peers and encourage their feedback.Books to Read:   · The Exceptional Presenter, by Timothy J. Koegel   · The Power Presenter, by Jerry Weissman   · Little Green Book of Getting Your Way:  How to Speak, Write, Present, Persuade, Influence, and Sell Your Point of     View to Others, by Jeffrey GitomerNOTE: If you don’t want to purchase these books, look for them in your local library.  You can also co-invest in them and share with other colleagues who present.

Five Keys to Successful Delegation

You are overqualified for most of the things you do in both your personal and professional life. If you are doing all the work, you will never reach your full potential. Here are five keys to help you delegate effectively, and achieve the success you desire:1. Hire people who are more gifted than you. Their strengths should be your weaknesses. Oftentimes people (1) hire others just like them, and (2) hire others cheaply because they havent made the decision that an assistant or new team member is worth the money. Hire the right people today so you wont be sorry tomorrow.2. Follow the 30/30/30 System for maximum empowerment. When you bring an assistant on board, follow this plan:For the first 30 days: (1) Let them shadow you (i.e., watch you do what they will one day be doing), (2) Highlight when you do what theyll be doing, (3) Answer their questions often, and (4) Test their knowledge daily.For the second 30 days: (1) You spot shadow them (i.e., watch them as they perform different tasks), (2) Coach and train them in key areas (to do otherwise is to set them up for failure), (3) Ask them questions daily, and (4) Test their knowledge often.For the third 30 days: (1) Coach them daily, (2) Train them weekly, and (3) Empower them permanently.3. Be more concerned with outcome than process. Know that different people with different talents can get you what you want through a different process than the one you want them to have. Make a habit of telling people specifically what you want them to do and how you want the task to look when it is done. Then, let people do the task the way they want to do it, within the parameters of efficiency and consistency.4. Build emotional equity by praising as much as you prune. Praise them publicly; prune them privately. It is really important to praise people publicly when they have done a great job for you. However, if you need to prune people, take care to do it privately so they wont be embarrassed in front of their peers.

5. Consistently surprise them with value and they will constantly delight you with performance. Whether you reward team members with a surprise gift certificate, trip, or day off, the surprise factor is huge. These rewards dont have to happen often, but make sure they happen often enough. You will be delighted with the performance you get from people as a result.

Loan Closing Mistakes – 7 Errors That Can Cost You BIG Money

Borrowers regularly make costly mistakes when closing their loans. A higher rate or an extra point on your loan can cost thousands. An error on a prepayment penalty, balloon payment, or adjustable rate can cost you tens of thousands more. It is ultimately your responsibility to protect yourself.

Real estate is very likely your single largest asset and debt. It can also be your largest financial risk. Invest a little time and effort with the tips below to avoid these potentially costly errors.

1 – Not Being Prepared – When you prepare for your closing, you get answers to all of your questions in advance and you know exactly what to expect when you arrive. Should any problems arise, you are prepared to act decisively and confidently to fix the problem.

2 – Failing To Monitor Rates and Fees – A good lender will notify you of any significant rate changes, but always check yourself. Ask for an updated Final Good Faith Estimate from your lender to confirm and compare to current rates. If the change is significant, re-price your loan or switch loans if time permits.

3 – Failing To Review Documents Before Closing – Avoid the trap of only reviewing the bottom line numbers. Ask the title company and your lender to send you your loan closing documents a day in advance for your review. In the event the documents are not available in advance, don’t worry. Simply review your initial application and disclosures since they make up the majority of what you will sign. At closing, you will quickly check the application and disclosures for any errors and then take as much time as you need to review the remaining items you have not seen.

4 – Assuming Everything is Correct – Don’t assume everything is correct or that it will match what you received in advance. Review every page prior to signing. Specifically, verify your fees, loan amount, interest rate, and other loan terms like any prepayment penalty, balloon payment, or adjustable rate.

5 – Not Hiring An Attorney When You Need One – If you need or want an attorney, get one. A few hundred dollars for an attorney is nothing compared to the cost of a mistake. It is worth the peace of mind.

6 – Asking the Closer/Notary for Advice – The title agents can only provide a description of each document and answer basic questions. While they want to help, they cannot provide legal advice. The answers to some of your questions will effectively be legal advice. Only an attorney can give legal advice.

7 – Closing Because “You Have To” – You never have to close. There is a lot of pressure to do so, but you have the legal right not to close. While it may cost money to wait, closing with a mistake can cost far more. Get answers, make things right and only close your loan once you are satisfied.

Ron Siegel is a Debt Counselor with MBE Capital, Inc.  MBE Capital educates people on Home Loans, Loss Mitigation, Debt Settlement and Credit Repair.   A recognized expert with twenty-five years in the finance, and real estate industries.  Ron is available at  http://www.mbehoa.com or via email at ron@mbehoa.com

The Big Freeze: Tips for Dealing with a Frozen or Reduced HELOC

One result of the credit crunch and the economic recession has been the freezing or reduction of home equity lines of credit (HELOC) by banks. A HELOC is a form of revolving credit in which the borrower’s home serves as collateral. And while this is not a surprising move by banks looking to be more conservative with their lending policies during tough times, many home owners counting on this credit will face some challenges if their HELOC is reduced or frozen.

To help you deal with these challenges, the US Treasury Department and the Federal Reserve each released some tips for homeowners in this situation. The following is a summary of these tips.

Read Everything to the Letter – Your HELOC lender must provide you with a written notice if it has frozen or reduced your HELOC no later than 3 business days after the freeze or reduction. Information about any other changes to your HELOC must be included as well, so read everything mailed to you from your lender.

Pick Up the Phone – Your lender has the right to freeze or reduce your HELOC, even if you have a good payment record. Some common reasons for the action are a decline in the value of your home, a negative change in your financial situation, or a negative change in your credit score. Contact your lender if you have questions or concerns about a freeze or reduction.

Communication is Key – The required notice to freeze or reduce your HELOC will likely contain specific reasons for the action. Find out the reason, and see if you can take any steps to reinstate your HELOC.  The bank might not know about home improvements you made that might affect the value of your home. It might not be aware that you or your spouse got a new job, took a second job, or made some substantial investments that affect your finances. If your credit took a hit, investigate ways to improve your credit and communicate your efforts to your bank.

Don’t Be Afraid to Ask – Your lender must reinstate your credit privileges when the conditions permitting the freeze or reduction no longer exist. You may need to request in writing to have your line of credit reinstated, so be sure to find out why your HELOC was frozen or reduced. Once your lender receives your written request, they must promptly investigate and determine whether your HELOC can be reinstated.

Be Prepared for Fees – There may be some fees involved to cover the costs for an appraisal and/or credit report when a bank considers your request for reinstating your HELOC. However, you cannot be charged a fee to reinstate your HELOC once the condition that caused the freeze or reduction no longer exists.

If you or someone you know has questions about HELOCs, credit repair, purchasing or refinancing a home, please don’t hesitate to give us a call.

Annual Percentage Rate – What is the Real Cost of Financing

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it’s important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.

The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what their actual costs are, and this inhibits lenders from hiding fees or upfront costs behind low interest rates in their advertising.

Fees that are generally included in the APR calculation are points, pre-paid interest, loan processing fees, underwriting fees, document preparation fees, and private mortgage insurance. On occasion, lenders will include a loan application fee and/or credit life insurance. Fees that are normally not included in the APR calculation are fees from Title, Escrow, attorney, notary, document preparation, home inspection, recording, transfer taxes, credit report and appraisal.

Remember, all lenders do not perform the calculation the same way. Moreover, APR does not consider the possibility of making pre-payments, moving or refinancing. Unless the interest rate is tied to a fixed instrument, APR is even more confusing. Calculating APRs on adjustable rate and balloon mortgages is more complex because we really have no way of knowing what future rates will be.

If all lenders calculated APR the same way, we could make easy comparisons when deciding on what loan program to go with. Since they don’t, the consumer should know that APR is simply a starting point for comparison. They should rely on the skills of a well-versed loan professional to assist them in obtaining the loan that meets their specific needs. The more important things to consider are how long the loan is needed. What are the long-term goals of the borrower? If the home buyer only expects to stay in the home for five years, there’s not a lot of sense in looking exclusively at 30-Year Fixed rates because the APR seems more reasonable. If a young couple is buying a home, knowing they will refinance in eight years to pay for their son’s college education, then once again, APR is not a realistic factor to take into consideration.

The Loan Executive should be prepared to answer questions about APR once the lender provides the Truth-in-Lending Disclosure Statement (Reg Z), such as why the “amount financed” listed in Box C is not the same as the actual loan amount, and why the APR is higher than the interest rate on the loan in most cases. The consumer will get a clear definition about the fees associated with their loan in the good-faith estimate, but the Truth-in-Lending Disclosure is often an area that is confusing to the borrower.