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Thursday, December 22, 2011
Saturday, May 14, 2011
Friday, January 7, 2011
Rob Shively Blog.......: FDA approves third human stem cell trial - January...
Rob Shively Blog.......: FDA approves third human stem cell trial - January...: "FDA approves third human stem cell trial - January 04, 2011 The US Food and Drug Administration has..."
Thursday, June 3, 2010
Wednesday, May 5, 2010
Tuesday, April 13, 2010
No More State Tax on Forgiven Debt
Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to pay off a previous loan that would have qualified.The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.
Thursday, March 18, 2010
Land Appreciation & Regional Economic Analysis
Why Land Bank with ACE Capital Group? View our land study to see why. This is a preview of the study, click the link to view in its entirety. Enjoy!!!
ace4wealth.com/landstudy: Preview
“Land Appreciation & Regional Economic Analysis” is a detailed study of the property values over the past five years in Antelope Valley in California. In a review of over 9,000 transactions reveal an average property annual appreciation rate of 45%. The median property annual appreciation rate was 33% and 90% of land had a positive appreciation. Strong population and economic projects combine to support the continued Land Banking opportunity in the region.
The study was done by Sevada Hemelians, an experienced real estate professional with an active real estate consulting practice of more than five years. Prior to starting his own consulting practice, Sevada Hemelians was director of marketing and research services of the Charles Dunn Company. Sevada has successfully prepared regional economic and multifamily forecasts that have been showcased at the Institute of Real Estate Management (IREM) Annual Forecast since 2000.
The Study was commissioned and paid for by ACE Capital Group
ace4wealth.com/landstudy: Preview
“Land Appreciation & Regional Economic Analysis” is a detailed study of the property values over the past five years in Antelope Valley in California. In a review of over 9,000 transactions reveal an average property annual appreciation rate of 45%. The median property annual appreciation rate was 33% and 90% of land had a positive appreciation. Strong population and economic projects combine to support the continued Land Banking opportunity in the region.
The study was done by Sevada Hemelians, an experienced real estate professional with an active real estate consulting practice of more than five years. Prior to starting his own consulting practice, Sevada Hemelians was director of marketing and research services of the Charles Dunn Company. Sevada has successfully prepared regional economic and multifamily forecasts that have been showcased at the Institute of Real Estate Management (IREM) Annual Forecast since 2000.
The Study was commissioned and paid for by ACE Capital Group
Thursday, March 11, 2010
WHO AM I ?
WHO AM I ?
I am the basis of all wealth, the heritage of the wise, the thrifty and prudent.
I am the poor person's joy and comfort, the rich person's prize, the right hand of capital, the silent partner
of thousands of successful people.
I am the solace of the widow, the comfort of old age, the cornerstone of security against misfortune and
want. I am handed down through generations, as a possession of great value.
I am the choicest fruit of labor, the safest collateral and yet I am humble. I stand before every person
bidding them to know me for what I am and asking them to possess me.
I am quietly growing in value through countless days. Though, I might seem dormant, my worth increases,
never failing, never ceasing. Time is my aid and the ever increasing population adds to my gain. I defy fire
and the elements, for they cannot destroy me.
My possessors learn to believe in me and invariable they become envied by those that have passed me by.
While all other things wither and decay, I alone survive. The centuries find me younger, always increasing
in strength. All oil and minerals come from me. I am the producer of food, building materials and the home
to every living thing. I serve as the foundation for homes, factories, banks and stores.
I have not been produced for millions of years, yet, I am so common that thousands, unthinking and
unknowingly, pass me by.
Who am I? "I AM LAND."
Anonymous
Find me on TWITTER @EndorsedBy
I am the basis of all wealth, the heritage of the wise, the thrifty and prudent.
I am the poor person's joy and comfort, the rich person's prize, the right hand of capital, the silent partner
of thousands of successful people.
I am the solace of the widow, the comfort of old age, the cornerstone of security against misfortune and
want. I am handed down through generations, as a possession of great value.
I am the choicest fruit of labor, the safest collateral and yet I am humble. I stand before every person
bidding them to know me for what I am and asking them to possess me.
I am quietly growing in value through countless days. Though, I might seem dormant, my worth increases,
never failing, never ceasing. Time is my aid and the ever increasing population adds to my gain. I defy fire
and the elements, for they cannot destroy me.
My possessors learn to believe in me and invariable they become envied by those that have passed me by.
While all other things wither and decay, I alone survive. The centuries find me younger, always increasing
in strength. All oil and minerals come from me. I am the producer of food, building materials and the home
to every living thing. I serve as the foundation for homes, factories, banks and stores.
I have not been produced for millions of years, yet, I am so common that thousands, unthinking and
unknowingly, pass me by.
Who am I? "I AM LAND."
Anonymous
Find me on TWITTER @EndorsedBy
Tuesday, January 12, 2010
Is Your Loan Illegal?
As you know, between 2000 and 2006 there was a record number of mortgages originated.
Millions of loans every year flooded the system.
Underwriters were under pressure to close as many files as possible.
Loan Officers wanted to close as many as quickly as possible, Borrowers wanted things done as quickly as possible.
All the while, new laws were being implemented changing calculations.
This was the perfect storm for mistakes to be made.
We're not saying that anyone in the transaction was doing anything improper, but something "sloppy" perhaps or maybe that lender has a different interpretation of the correct way to calculate things.
PLUS, many were changing operating systems at the time and going automated.
Further, on the uglier side of things, there were over inflated values, predatory lending, and out and out fraud happening.
Our Forensic Audit review is not simply an APR calculation like some try to pass of as an audit.
Come learn the power of the Forensic Audit.
You can sell a forensic audit with NO COMPLIANCE ISSUES.
AUDITS ARE O.K. IN ALL 50 STATES!!!
Why sell a loan modification and risk issues with your state?
Earn $$ referring your clients for a FORENSIC AUDIT REVIEW!!!
Register today!
Title: Is Your Loan Illegal?
Date: Tuesday, January 19, 2010
Time: 3:00 PM - 4:00 PM CST
Contact Me To Find Out How You Can Earn Even More!
Millions of loans every year flooded the system.
Underwriters were under pressure to close as many files as possible.
Loan Officers wanted to close as many as quickly as possible, Borrowers wanted things done as quickly as possible.
The pressure was on and everyone wanted to "get er' done" now.
All the while, new laws were being implemented changing calculations.
This was the perfect storm for mistakes to be made.
- Calculations are wrong
- Payment schedules are off
- Critical documents are LOST
- Margins and indexes are incorrect
- High cost limits are exceeded in many cases
- Net tangible benefits are not calculated properly.
We're not saying that anyone in the transaction was doing anything improper, but something "sloppy" perhaps or maybe that lender has a different interpretation of the correct way to calculate things.
PLUS, many were changing operating systems at the time and going automated.
Many of the "automated" systems were standardized. Unfortunately, high cost in one city, county, state is not the same in another.
Did you know that? I didn't know this at the time either.
Further, on the uglier side of things, there were over inflated values, predatory lending, and out and out fraud happening.
Our Forensic Audit review is not simply an APR calculation like some try to pass of as an audit.
Our audits go DEEP.
Come learn the power of the Forensic Audit.
- Gain Leverage in a Loan Modification
- Go on the OFFENSE with your lender
- Protect your clients from foreclosure.
You can sell a forensic audit with NO COMPLIANCE ISSUES.
AUDITS ARE O.K. IN ALL 50 STATES!!!
Why sell a loan modification and risk issues with your state?
Earn $$ referring your clients for a FORENSIC AUDIT REVIEW!!!
Register today!
Title: Is Your Loan Illegal?
Date: Tuesday, January 19, 2010
Time: 3:00 PM - 4:00 PM CST
Contact Me To Find Out How You Can Earn Even More!
Sunday, January 10, 2010
Thursday, January 7, 2010
"Landlords grow rich in their sleep."
"Landlords grow rich in their sleep." -John Stuart Mills, Economist and MP
When and where you Land Bank is critical to the performance of your investment. The following illustration displays the advantage of knowing where, in the development cycle, a parcel of land exists:
Since there is little demand or market activity with undeveloped land, and your returns on developed land are closely tied to the cycles of prosperity and down turns in the local or regional economy, pre-developed lands the choice of experienced Land Bankers. What typically occurs in the Pre-developed or Growth Phase is a series of both planned and unexpected events that causes a parcel of land to spike in value such as public notice of a zoning change, announcement of the construction of a nearby school, church or fire station; or city approval for a new retail or commercial development. Therefore the earlier you purchase a parcel in the Growth Phase the more opportunities you will have to reap the benefits of multiple spikes in value.
Tuesday, January 5, 2010
Forget the current cyclical housing “down turns”, housing “busts”, mortgage “crisis”, etc.
Recently, I have been involved in purchasing more than 30 parcels of land in the Antelope Valley. Not one seller was selling for fear of falling prices. All were demanding increases in prices and getting them from us, private developers and other companies involved in land banking.
There is no other area in the United States that has the density of population and the net growth rate that can compare to the 60 miles radius surrounding the center Los Angeles. Combine that fact with the huge economic engine in that area (LA is the 11th or 12th most powerful economy in the world) and what do we have? AN UNPRECEDENTED DEMAND FOR LAND!!
On July 12, 2007 the Southern California Association of Governments and on September 11, 2007 the California Department of Housing and Community Development released the Regional Housing Needs Assessment requiring north Los Angeles County to increase the total number of dwelling units by 73,519 BEFORE June, 30, 2014. They have less than seven years to accomplish that feat.
Of that amount, Palmdale is expected to add 17,910 of the new dwelling units, or 24% of the total before June 30, 2014. Lancaster has been assigned to add 12,799 new units, or 17% of the total before June 30, 2014.
The two cities have approximately 83,767 existing dwelling units. Together they are expected to increase the number of units by 30,709—a 36.7% increase in the next 7 years. Those numbers do not include the additional expansion in the other areas within the Antelope Valley. Now you know why private developers and land bankers are quietly, but very intently, buying land in the Antelope Valley.
DON’T WAIT!
There is no other area in the United States that has the density of population and the net growth rate that can compare to the 60 miles radius surrounding the center Los Angeles. Combine that fact with the huge economic engine in that area (LA is the 11th or 12th most powerful economy in the world) and what do we have? AN UNPRECEDENTED DEMAND FOR LAND!!
On July 12, 2007 the Southern California Association of Governments and on September 11, 2007 the California Department of Housing and Community Development released the Regional Housing Needs Assessment requiring north Los Angeles County to increase the total number of dwelling units by 73,519 BEFORE June, 30, 2014. They have less than seven years to accomplish that feat.
Of that amount, Palmdale is expected to add 17,910 of the new dwelling units, or 24% of the total before June 30, 2014. Lancaster has been assigned to add 12,799 new units, or 17% of the total before June 30, 2014.
The two cities have approximately 83,767 existing dwelling units. Together they are expected to increase the number of units by 30,709—a 36.7% increase in the next 7 years. Those numbers do not include the additional expansion in the other areas within the Antelope Valley. Now you know why private developers and land bankers are quietly, but very intently, buying land in the Antelope Valley.
DON’T WAIT!
Roll your IRA into Real Estate
Do you know that you can purchase California Land in your IRA?
Yes! You can roll your IRA (traditional, SEP, Simple, or Roth) as well as some qualified 401(K), Solo 401(K) and 403(b), etc. into carefully selected California land. Carefully chosen California real estate is proven to be a particularly safe and rewarding long-term appreciation strategy.
What is carefully selected land? It is pre-developed land in the growth path of a major metropolitan area. California has a current population of approximately 37 million. More than one in five Americans lives in California. More importantly it continues to grow at rate of 500,000 annually and is projected to reach 40 million by 2013. It has predictable future growth based on the demographics of the area.
Why Use Your IRA
The whole idea behind qualified retirement plans and IRAs is to give people incentive to save for retirement. Tax deferral is a powerful benefit because it allows you to invest money that would otherwise have to be paid out in taxes each year, thus enabling you to build your retirement fund that much faster.
“Ninety percent of all millionaires become so through owning real estate. “ Andrew Carnegie. ACE Capital Group has helped thousands of people roll their IRA’s to acquire select California real estate. The first step to maximizing your IRA is to gain more control over it. If you already don’t have a Self-directed IRA you need to identify one and transfer your employer-sponsored plan into it. There are plan administrators that specialize in owning real estate in your IRA.
The rules for rolling over your IRA are not complicated, but there are lots of them, so professional advice is recommended. We suggest checking out the ACE Professional Network. Some of the rules deal with how to do the rollover itself; some pertain to the type of investments within the IRA; and some rules relate to how and when you can and must take distributions from your IRA.
Maximizing Your IRA
The investment returns earned by your IRA assets will determine the size of your nest egg at retirement. For example, if you roll over $25,000 when you’re 35 and invest it at a fixed rate of, say, 5% compounded annually, you would have close to $80,600 when you turn 60. But if you invest in a growth vehicle that averages 15%, you’d end up with nearly nine times as much, over $716,000, even if you never add another penny to the account.
And if the stakes are bigger the difference is even more dramatic. Now, these numbers are provided as an illustration only; your investment returns could be very different, and it must be remembered that required minimum distributions at age 70-1/2 would begin to diminish the IRA. The point is that you should pay close attention to how your IRA assets are invested because it could make a big difference in your comfort level in retirement.
Putting Together a Well-balanced Portfolio
If you have been personally managing your 401(k) account or other retirement plan, you are familiar with the concept of asset allocation and diversification. By investing retirement funds in several non-correlated asset classes, you have most of the bases covered. You don’t need to worry about choosing the “right” asset class because you have a little money in each. If one asset class falls in value, the effect on your overall portfolio should be negligible because your money is spread among several different asset classes.
At the same time, it often makes sense to adjust portfolio holdings along with changes in the outlook for the markets and the economy. This is called tactical asset allocation. Rather than sticking with the same allocations year in and year out regardless of what the markets are doing, investments get channeled where opportunities are more attractive. You’re still diversified across asset classes, but the weightings change based on the outlook.
However, tactical asset allocation requires a little more attention than ACE’s Land Banking long-term strategy which you can purchase-and-forget, buy-and-hold, and is not as active as a market timing strategy. However, land is not a readily liquid asset and may require consider time to sale or transfer.
Prohibited IRA Investments
The IRA does not prohibit the acquisition of land as an IRA asset, but has defined a number of prohibited transactions which are simply not allowed in IRA accounts. If an IRA holder does engage in a prohibited transaction, the amount will be considered a distribution, subject to taxes and applicable penalties. Here are some of the items you can’t invest in with your IRA:
In addition, the following are examples of prohibited transactions concerning your IRA:
Yes! You can roll your IRA (traditional, SEP, Simple, or Roth) as well as some qualified 401(K), Solo 401(K) and 403(b), etc. into carefully selected California land. Carefully chosen California real estate is proven to be a particularly safe and rewarding long-term appreciation strategy.
What is carefully selected land? It is pre-developed land in the growth path of a major metropolitan area. California has a current population of approximately 37 million. More than one in five Americans lives in California. More importantly it continues to grow at rate of 500,000 annually and is projected to reach 40 million by 2013. It has predictable future growth based on the demographics of the area.
Why Use Your IRA
The whole idea behind qualified retirement plans and IRAs is to give people incentive to save for retirement. Tax deferral is a powerful benefit because it allows you to invest money that would otherwise have to be paid out in taxes each year, thus enabling you to build your retirement fund that much faster.
“Ninety percent of all millionaires become so through owning real estate. “ Andrew Carnegie. ACE Capital Group has helped thousands of people roll their IRA’s to acquire select California real estate. The first step to maximizing your IRA is to gain more control over it. If you already don’t have a Self-directed IRA you need to identify one and transfer your employer-sponsored plan into it. There are plan administrators that specialize in owning real estate in your IRA.
The rules for rolling over your IRA are not complicated, but there are lots of them, so professional advice is recommended. We suggest checking out the ACE Professional Network. Some of the rules deal with how to do the rollover itself; some pertain to the type of investments within the IRA; and some rules relate to how and when you can and must take distributions from your IRA.
Maximizing Your IRA
The investment returns earned by your IRA assets will determine the size of your nest egg at retirement. For example, if you roll over $25,000 when you’re 35 and invest it at a fixed rate of, say, 5% compounded annually, you would have close to $80,600 when you turn 60. But if you invest in a growth vehicle that averages 15%, you’d end up with nearly nine times as much, over $716,000, even if you never add another penny to the account.
And if the stakes are bigger the difference is even more dramatic. Now, these numbers are provided as an illustration only; your investment returns could be very different, and it must be remembered that required minimum distributions at age 70-1/2 would begin to diminish the IRA. The point is that you should pay close attention to how your IRA assets are invested because it could make a big difference in your comfort level in retirement.
Putting Together a Well-balanced Portfolio
If you have been personally managing your 401(k) account or other retirement plan, you are familiar with the concept of asset allocation and diversification. By investing retirement funds in several non-correlated asset classes, you have most of the bases covered. You don’t need to worry about choosing the “right” asset class because you have a little money in each. If one asset class falls in value, the effect on your overall portfolio should be negligible because your money is spread among several different asset classes.
At the same time, it often makes sense to adjust portfolio holdings along with changes in the outlook for the markets and the economy. This is called tactical asset allocation. Rather than sticking with the same allocations year in and year out regardless of what the markets are doing, investments get channeled where opportunities are more attractive. You’re still diversified across asset classes, but the weightings change based on the outlook.
However, tactical asset allocation requires a little more attention than ACE’s Land Banking long-term strategy which you can purchase-and-forget, buy-and-hold, and is not as active as a market timing strategy. However, land is not a readily liquid asset and may require consider time to sale or transfer.
Prohibited IRA Investments
The IRA does not prohibit the acquisition of land as an IRA asset, but has defined a number of prohibited transactions which are simply not allowed in IRA accounts. If an IRA holder does engage in a prohibited transaction, the amount will be considered a distribution, subject to taxes and applicable penalties. Here are some of the items you can’t invest in with your IRA:
- Art
- Rugs
- Antiques
- Metals
- Gems
- Jewelry
- Stamps
- Coins
- Alcoholic beverages including wine
- Certain other tangible personal property
In addition, the following are examples of prohibited transactions concerning your IRA:
- Borrowing money from it
- Selling property to it
- Receiving unreasonable compensation for managing it
- Using it as security for a loan
- Buying property for personal use (present or future)
Saturday, January 2, 2010
39 Action Steps for a Healthier, Happier & Wealthier New Year
39 Action Steps for a Healthier, Happier & Wealthier New Year
Written By My Good Friend and Colleague: Jim Walberg of East Bay Real Estate and Caribbean Islands Realty
Written By My Good Friend and Colleague: Jim Walberg of East Bay Real Estate and Caribbean Islands Realty
Health:
- Drink plenty of water.
- Eat breakfast like a king, lunch like a prince, and dinner like a beggar.
- Eat more foods that grow on trees and plants, and eat less food that is manufactured in plants…
- Live with the “Three E’s” – Energy, Enthusiasm and Empathy.
- Make time to pray each day.
- Play more games each week.
- Read more books than you did in 2009.
- Sit in silence for at least 10 minutes each day.
- Sleep for 7 hours a day.
- Take 10-30 minutes to walk daily. And while you walk, smile, no matter what you are currently feeling.
Personality:
- Don’t compare your life to others. You have no idea what their journey is all about.
- Don’t have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
- Don’t overdo. Keep your limits.
- Don’t take yourself so seriously. No one else does.
- Don’t waste your precious energy on gossip.
- Dream more while you are awake.
- Envy is a waste of time. You already have all you need in your life.
- Forget issues of the past. Don’t remind your partner with his/her mistakes of the past. That will ruin your present happiness.
- Life is too short to waste time hating anyone. Don’t hate others...
- Make peace with your past so it won’t spoil the present.
- No one is in charge of your happiness except you. Life is about taking 100% responsibility for ALL your actions. No Blame!
- Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
- Smile and laugh more.
- You don’t have to win every argument. Agree to disagree….
Community:
- Call your family often.
- Each day give something good to others.
- Forgive everyone for everything.
- Spend time with people over the age of 70 and under the age of 6.
- Try to make at least three people smile each day.
- What other people think of you is none of your business.
- Your job won’t take care of you when you are sick. Your friends will. Stay in touch.
Life:
- Always do the right thing!
- Get rid of anything that isn’t useful, beautiful or joyful.
- GOD heals everything.
- However good or bad a situation, it will change...
- No matter how you feel, get up, dress up and show up each day.
- The best is yet to come.
- When you awake and realize you are still alive in the morning, thank GOD for that gift.
- Your Inner-Most is always Happy. So, BE Happy!
Monday, December 28, 2009
REALTORS...LIST & SELL MORE PROPERTIES!!!
REALTORS...LIST & SELL MORE PROPERTIES!!!
Looking for the next important real estate niche? There is life after short sales!
Could you list and sell more homes if:
- Income and credit scores absolutely did not matter?
- You were serving the fastest-growing demographic group on the planet?
- You were partnering with the top expert in the nation on marketing this exciting new government-insured mortgage?
Anyone 62+ can now buy Single Family, multi-unit AND can even become a cash buyer for Investment Properties, all with NO Income Requirements and NO Credit Approval.
At the risk of sounding way too good to be true, there are also NO monthly mortgage payments with this program although a larger down payment is required?
You owe it to yourself to learn more! Reserve your space at the next eMerge business development webinar on this important new program!
Contact Monte Howard for more information: MHoward@eMergeFA.com
Saturday, December 19, 2009
How To Earn A Six Figure Income Closing 75% Of Your Short Sale Listings In 3 Months Or Less
Don't Risk Another Dime on Short Sale Training.
Finding, listing and closing short sales is simple when you team up with 2 of the most sought-after short sale experts and marketing geniuses and discover...
How To Earn A Six Figure Income Closing 75% Of Your Short Sale Listings In 3 Months Or Less
Dear Fellow Real Estate Agent,
Does every buyer you work with, and every short sale listing you take produce the results you’re really after?
Is your association with these clients as profitable as you’d like them to be?
Even if you’re doing alright closing a few transactions... even if you’re able to get a few short sale listings to close... wouldn’t you like to increase your results by as much as 9 times? As spectacular as this might sound, one of my clients did just that. Using what I’m about to show you, he increased his number of closed transactions by 823% (it’s all documented later in this letter). And many more of my clients increased their number of closed transactions and profits by 300% or more.
How did they achieve such stellar results? Actually, the answer is quite simple. If you want to improve your sales and profits exponentially, the secret to doing it is:
More powerful business systems and the upper hand in negotiating short sales.
It’s just that simple. Look, I don’t care how great you service as an agent is, how good you are at pricing and marketing a home, how quickly you can get an offer, or how unique any other component of your Real Estate business might be.
The bottom line is this: if you don’t do an exceptional job of timing the submission of a short sale… or if you don’t have the upper hand when negotiating with a loss mitigator... if you confuse them... or don’t do the strongest job possible of convincing them that the offer you have is a much better option than foreclosure...
You’re cheating yourself out of all the profits you could potentially be earning!
I’m sure you know from experience that this is absolutely true. Haven’t you presented solid offers to lenders or spoken with a loss mitigator thinking there is no way they could turn down the offer, they would have to be crazy - only to have the deal fail dismally and fall apart?
I know this painful outcome is all too familiar. Because a full 80% of my clients tell me they’ve been through this.
Hold on. Maybe you’re thinking, “So what. This doesn’t really apply to me. I do mostly traditional transactions and don’t have to deal with ‘short sales’. And since I don’t have to worry about the lender ‘turning down the offer’, almost every transaction I put together, closes and I make a profit”.
Unfortunately, that kind of close minded thinking is killing your opportunity to really make money in a ‘down market’. While it’s true that it is easier to close a traditional real estate transaction, the real problem is the declining market makes it so that more and more of the transactions will be short sales.
Right now, over 10% of every listing in almost every one of America’s cities is a short sale! In fact, in some areas, over 20% of the listings are short sales. That’s 1 in every 5!! Which means you’re in an all out war to get those remaining ‘traditional transactions’. Just getting those traditional listing, much less selling them quickly in this market, is an enormous challenge.
Bottom line, ask yourself this question: “If short sales are becoming so common, how can I make more money closing short sales with my current level of experience?” Because I know from what my clients tell me that the vast majority of Real Estate Agents are getting mediocre results at best. The average agent without specialized short sale training closes only 1 out of every 10 short sale listings.
In addition to closing only 10% of their short sale listings, my clients also tell me they wish they were much better at negotiating with the banks loss mitigation department to get more deals approved. Or they wish they knew more about how to effectively close their short sale listings in just 90 days from the day it is listed.
Here’s How To Put An End To Poor Results And Start Increasing The Number Of Closed Transactions Right Away
If you’d like to put an end to the dismal results you’ve been getting in this down market... if you’d like to be able to find, list and close more transactions (especially short sale) and sell your ‘services’ like crazy... if you’d like to super-charge your pool of listings, pending sales and closed transactions, I’ve got good news for you.
Lee is traveling the nation teaching agents exactly how to do just this. In a three hour, no holds barred, full fledged "this is what you need to know" training he reveals what 'other gurus' never do. He tells you exactly how to get your short sale through the bank in and closed in 90 days or less.
See Where In The World Lee Will Be Next! See Where In The World Lee Will Be Next
Finding, listing and closing short sales is simple when you team up with 2 of the most sought-after short sale experts and marketing geniuses and discover...
How To Earn A Six Figure Income Closing 75% Of Your Short Sale Listings In 3 Months Or Less
Dear Fellow Real Estate Agent,
Does every buyer you work with, and every short sale listing you take produce the results you’re really after?
Is your association with these clients as profitable as you’d like them to be?
Even if you’re doing alright closing a few transactions... even if you’re able to get a few short sale listings to close... wouldn’t you like to increase your results by as much as 9 times? As spectacular as this might sound, one of my clients did just that. Using what I’m about to show you, he increased his number of closed transactions by 823% (it’s all documented later in this letter). And many more of my clients increased their number of closed transactions and profits by 300% or more.
How did they achieve such stellar results? Actually, the answer is quite simple. If you want to improve your sales and profits exponentially, the secret to doing it is:
More powerful business systems and the upper hand in negotiating short sales.
It’s just that simple. Look, I don’t care how great you service as an agent is, how good you are at pricing and marketing a home, how quickly you can get an offer, or how unique any other component of your Real Estate business might be.
The bottom line is this: if you don’t do an exceptional job of timing the submission of a short sale… or if you don’t have the upper hand when negotiating with a loss mitigator... if you confuse them... or don’t do the strongest job possible of convincing them that the offer you have is a much better option than foreclosure...
You’re cheating yourself out of all the profits you could potentially be earning!
I’m sure you know from experience that this is absolutely true. Haven’t you presented solid offers to lenders or spoken with a loss mitigator thinking there is no way they could turn down the offer, they would have to be crazy - only to have the deal fail dismally and fall apart?
I know this painful outcome is all too familiar. Because a full 80% of my clients tell me they’ve been through this.
Hold on. Maybe you’re thinking, “So what. This doesn’t really apply to me. I do mostly traditional transactions and don’t have to deal with ‘short sales’. And since I don’t have to worry about the lender ‘turning down the offer’, almost every transaction I put together, closes and I make a profit”.
Unfortunately, that kind of close minded thinking is killing your opportunity to really make money in a ‘down market’. While it’s true that it is easier to close a traditional real estate transaction, the real problem is the declining market makes it so that more and more of the transactions will be short sales.
Right now, over 10% of every listing in almost every one of America’s cities is a short sale! In fact, in some areas, over 20% of the listings are short sales. That’s 1 in every 5!! Which means you’re in an all out war to get those remaining ‘traditional transactions’. Just getting those traditional listing, much less selling them quickly in this market, is an enormous challenge.
Bottom line, ask yourself this question: “If short sales are becoming so common, how can I make more money closing short sales with my current level of experience?” Because I know from what my clients tell me that the vast majority of Real Estate Agents are getting mediocre results at best. The average agent without specialized short sale training closes only 1 out of every 10 short sale listings.
In addition to closing only 10% of their short sale listings, my clients also tell me they wish they were much better at negotiating with the banks loss mitigation department to get more deals approved. Or they wish they knew more about how to effectively close their short sale listings in just 90 days from the day it is listed.
Here’s How To Put An End To Poor Results And Start Increasing The Number Of Closed Transactions Right Away
If you’d like to put an end to the dismal results you’ve been getting in this down market... if you’d like to be able to find, list and close more transactions (especially short sale) and sell your ‘services’ like crazy... if you’d like to super-charge your pool of listings, pending sales and closed transactions, I’ve got good news for you.
Lee is traveling the nation teaching agents exactly how to do just this. In a three hour, no holds barred, full fledged "this is what you need to know" training he reveals what 'other gurus' never do. He tells you exactly how to get your short sale through the bank in and closed in 90 days or less.
See Where In The World Lee Will Be Next! See Where In The World Lee Will Be Next
Monday, December 7, 2009
Quote from Monte Howard from the book "Fiscal Fitness"
Chapter 10
Step 7: Tap Your Home's Equity - You've Earned It!
Dead equity is like dead calories. It's no good for you. – Matt Rettick
Equity is all about value and ownership. When talking about a house or condo, equity is the value of the property that belongs to you, minus any mortgage due on the home. When referring to an investment, equity is that portion or share that's yours. Don't be afraid of your equity in anything. It is, after all, yours. You've worked for it; you've earned it. It's your money, your asset, your equity.
A big part of becoming fiscally fit is to understand what your equity - as in your home – can do to help you, and then how to make the right choices so that it works hard for you. Ideally, you want to make the most of your equity while keeping the safety and security of yourself and your loved ones in mind.
A reverse mortgage, available to those homeowners age 62 and above, can accomplish just that, especially when it comes to preserving affordable quality of life and remaining in your own home as long as possible.
Why Consider a Reverse Mortgage?We've all heard it dozens of times: Probably the largest purchase any of us will ever make is our home. Most people work a lifetime, tap their savings, borrow huge sums, and pay tens of thousands of dollars in interest for the privilege of home ownership. It is, after all, a huge part of the American dream. In fact, 81 percent of householders age 65 and older in 2006 owned their home (U.S. Census).
Because owning that home has taken so much effort to achieve, why not let that home make life easier for you in your retirement? A reverse mortgage can provide cash to help fix up your house or fund your care if you're chronically or catastrophically ill. It can give you the wherewithal to remain in your home for your lifetime instead of being forced into a nursing home. Conversely, it can pay for nursing-home cost, thus allowing you to avoid dependence on Medicaid and keep you in control of you life.
A reverse mortgage is a nonrecourse loan – you don't have to qualify and you don't have to repay the money during your lifetime. It's available to those ages 62 and older who live in and own their home. Even if you home isn't paid off, you could be eligible for a reverse mortgage. Remember, it's based on your equity – your ownership share. You or your spouse can't be kicked out of your home either, even after the term of the mortgage runs out.
A reverse mortgage is for life. It has no term, so no matter how long you or your spouse lives in your home, there will be no requirement to repay the reverse mortgage as long as taxes and insurance remain current. – Monte Howard (Mountain States Mortgage Centers)
Step 7: Tap Your Home's Equity - You've Earned It!
Dead equity is like dead calories. It's no good for you. – Matt Rettick
Equity is all about value and ownership. When talking about a house or condo, equity is the value of the property that belongs to you, minus any mortgage due on the home. When referring to an investment, equity is that portion or share that's yours. Don't be afraid of your equity in anything. It is, after all, yours. You've worked for it; you've earned it. It's your money, your asset, your equity.
A big part of becoming fiscally fit is to understand what your equity - as in your home – can do to help you, and then how to make the right choices so that it works hard for you. Ideally, you want to make the most of your equity while keeping the safety and security of yourself and your loved ones in mind.
A reverse mortgage, available to those homeowners age 62 and above, can accomplish just that, especially when it comes to preserving affordable quality of life and remaining in your own home as long as possible.
Why Consider a Reverse Mortgage?We've all heard it dozens of times: Probably the largest purchase any of us will ever make is our home. Most people work a lifetime, tap their savings, borrow huge sums, and pay tens of thousands of dollars in interest for the privilege of home ownership. It is, after all, a huge part of the American dream. In fact, 81 percent of householders age 65 and older in 2006 owned their home (U.S. Census).
Because owning that home has taken so much effort to achieve, why not let that home make life easier for you in your retirement? A reverse mortgage can provide cash to help fix up your house or fund your care if you're chronically or catastrophically ill. It can give you the wherewithal to remain in your home for your lifetime instead of being forced into a nursing home. Conversely, it can pay for nursing-home cost, thus allowing you to avoid dependence on Medicaid and keep you in control of you life.
A reverse mortgage is a nonrecourse loan – you don't have to qualify and you don't have to repay the money during your lifetime. It's available to those ages 62 and older who live in and own their home. Even if you home isn't paid off, you could be eligible for a reverse mortgage. Remember, it's based on your equity – your ownership share. You or your spouse can't be kicked out of your home either, even after the term of the mortgage runs out.
A reverse mortgage is for life. It has no term, so no matter how long you or your spouse lives in your home, there will be no requirement to repay the reverse mortgage as long as taxes and insurance remain current. – Monte Howard (Mountain States Mortgage Centers)
Monte Howard on Reverse Mortgages
By Lew Sichelman
WASHINGTON (MarketWatch) -- Question: I have many questions regarding the Home Equity Conversion Mortgage. How much down payment is required? Is there really no verification of income or assets? Do we have to sell our current house first (it is currently listed for sale)? Would it be possible to find a condo in a retirement development in Southern California that would be approved under this program?
Answer: You are referring to the new Home equity Conversion Mortgage for Purchase program, which was authorized by Congress in the Housing and Economic Recovery Act of 2008 that took effect Jan. 1.
Are you saving enough? Experts recommend people set aside an emergency fund equal to about six months of income -- a steep figure for those who struggle to save. The solution is to start small and make it fun, says Mackey McNeill, a personal financial specialist and founder of Mackey Advisors. MarketWatch's Andrea Coombes reports.
The program, which is aimed largely at persons 62 years or older who want to move down the housing ladder, allows seniors to sell their current residence and use a reverse mortgage to buy a new one, all in a single transaction that eliminates the need for a second set of expensive closing costs. HECM's are insured by the Federal Housing Administration.
According to Monte Howard, affinity marketing director at Atlanta-based Generation Mortgage, the down payment on the new residence is based on three factors:
The youngest purchaser's age. The older the buyer, says Howard, the smaller the down payment.
Prevailing interest rates. The lower the rate, the smaller the down payment on a reverse mortgage that comes with a fixed rate that never changes over the life of the loan. But adjustable-rate reverse loans "have a special rate factor" called "the expected rate" that is used in the down payment calculation, Howard reports.
Value. Lenders use either the property's sale price or appraised value, whichever is less, to determine the loan amount, which is then used to determine the down payment. But for properties valued above the current FHA HECM lending limit of $625,000, you'll have to come up with more cash, for every dollar in value above the limit will add a dollar to the down payment.
According to Howard, neither a purchaser's income nor credit score are factors in qualifying for a HECM. "A prior bankruptcy, for example, would not affect a prospective purchaser's ability to qualify as long as it is not a current, unresolved proceeding," he says.
But there is limited asset verification. Purchasers must demonstrate that they have the required down payment and that the money has not been borrowed. Financial gifts appear to be acceptable under certain guidelines intended to confirm that the funds are truly a gift, not an undocumented loan.
Howard also says that purchasers are not required to sell their current home prior to the closing of their reverse mortgage purchase. But they must occupy their new home within 60 days of closing. Purchasers can retain their current home as a rental property as long as they are capable of meeting the financial obligations of maintaining both homes.
And as for your final question, any condo that meets FHA requirements can be purchased through the HECM reverse mortgage program.
Q: I am 68 years old and have owned my home for 28 years. I am now in the process of refinancing to take advantage of a lower interest rate. Does the HECM include the refinancing of existing mortgages or is it for new purchases only?
A: Eric Bachman, chief executive officer at Oakland, Calif.-based Golden Gateway Financial, says most HECMs are used by seniors who want to remain in their homes. They work best when you own your home sans mortgage, or at least almost free and clear.
But you can use them to replace your current financing. And depending on your age, the property's value and what you still owe, a reverse mortgage could be a good way to generate additional income.
"If you still hold a forward mortgage on your property, a reverse mortgage can help eliminate your remaining debt while potentially creating additional funds that can be drawn as a lump sum or a monthly payment over time," Bachman says.
Based on the little bit of information you provided in your question, the reverse mortgage expert thinks that because of your relatively young age, a tenure payment "might be the best option."
A tenure payment is a monthly payment to you from the lender -- hence the name "reverse" mortgage -- for as long as you own your home. Better yet, because a HECM is a no-recourse loan, once it comes due you are protected from ever owing more than the fair market value of the home at the time of its sale.
WASHINGTON (MarketWatch) -- Question: I have many questions regarding the Home Equity Conversion Mortgage. How much down payment is required? Is there really no verification of income or assets? Do we have to sell our current house first (it is currently listed for sale)? Would it be possible to find a condo in a retirement development in Southern California that would be approved under this program?
Answer: You are referring to the new Home equity Conversion Mortgage for Purchase program, which was authorized by Congress in the Housing and Economic Recovery Act of 2008 that took effect Jan. 1.
Are you saving enough? Experts recommend people set aside an emergency fund equal to about six months of income -- a steep figure for those who struggle to save. The solution is to start small and make it fun, says Mackey McNeill, a personal financial specialist and founder of Mackey Advisors. MarketWatch's Andrea Coombes reports.
The program, which is aimed largely at persons 62 years or older who want to move down the housing ladder, allows seniors to sell their current residence and use a reverse mortgage to buy a new one, all in a single transaction that eliminates the need for a second set of expensive closing costs. HECM's are insured by the Federal Housing Administration.
According to Monte Howard, affinity marketing director at Atlanta-based Generation Mortgage, the down payment on the new residence is based on three factors:
The youngest purchaser's age. The older the buyer, says Howard, the smaller the down payment.
Prevailing interest rates. The lower the rate, the smaller the down payment on a reverse mortgage that comes with a fixed rate that never changes over the life of the loan. But adjustable-rate reverse loans "have a special rate factor" called "the expected rate" that is used in the down payment calculation, Howard reports.
Value. Lenders use either the property's sale price or appraised value, whichever is less, to determine the loan amount, which is then used to determine the down payment. But for properties valued above the current FHA HECM lending limit of $625,000, you'll have to come up with more cash, for every dollar in value above the limit will add a dollar to the down payment.
According to Howard, neither a purchaser's income nor credit score are factors in qualifying for a HECM. "A prior bankruptcy, for example, would not affect a prospective purchaser's ability to qualify as long as it is not a current, unresolved proceeding," he says.
But there is limited asset verification. Purchasers must demonstrate that they have the required down payment and that the money has not been borrowed. Financial gifts appear to be acceptable under certain guidelines intended to confirm that the funds are truly a gift, not an undocumented loan.
Howard also says that purchasers are not required to sell their current home prior to the closing of their reverse mortgage purchase. But they must occupy their new home within 60 days of closing. Purchasers can retain their current home as a rental property as long as they are capable of meeting the financial obligations of maintaining both homes.
And as for your final question, any condo that meets FHA requirements can be purchased through the HECM reverse mortgage program.
Q: I am 68 years old and have owned my home for 28 years. I am now in the process of refinancing to take advantage of a lower interest rate. Does the HECM include the refinancing of existing mortgages or is it for new purchases only?
A: Eric Bachman, chief executive officer at Oakland, Calif.-based Golden Gateway Financial, says most HECMs are used by seniors who want to remain in their homes. They work best when you own your home sans mortgage, or at least almost free and clear.
But you can use them to replace your current financing. And depending on your age, the property's value and what you still owe, a reverse mortgage could be a good way to generate additional income.
"If you still hold a forward mortgage on your property, a reverse mortgage can help eliminate your remaining debt while potentially creating additional funds that can be drawn as a lump sum or a monthly payment over time," Bachman says.
Based on the little bit of information you provided in your question, the reverse mortgage expert thinks that because of your relatively young age, a tenure payment "might be the best option."
A tenure payment is a monthly payment to you from the lender -- hence the name "reverse" mortgage -- for as long as you own your home. Better yet, because a HECM is a no-recourse loan, once it comes due you are protected from ever owing more than the fair market value of the home at the time of its sale.
Saturday, September 19, 2009
From the Office of the California Attorney General
"STOP Loan Modification Fraud"
5 Tips to Avoid Being Scammed
DON'T pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
DON'T ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
DON'T transfer title or sell your house to a "foreclosure rescuer." Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
DON'T pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
NEVER sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
5 Tips to Avoid Being Scammed
DON'T pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
DON'T ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
DON'T transfer title or sell your house to a "foreclosure rescuer." Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
DON'T pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
NEVER sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
Thursday, June 25, 2009
Loss Mitigation Industry Update
CREDIT CARD USERS are getting fed up with policies that raise interest, rates indiscriminately, cut credit limits without reason, and impose stiff penalties. The backlash is evident in a rash of web sites and BBB complaints, but the credit card companies continue with their punitive policies.
A PROPOSED PIECE of legislation would expand the existing $8000 first-time home buyer’s tax credit to $15,000, make all home buyers eligible, and eliminate income caps. The proposed legislation would also extend the credit to the middle of 2010.
FREDDIE MAC WILL no longer require that borrowers refinance through their original servicers, opening the door to greater options for finding the best deal on refinancing a Freddie Mac loan. The agency will also allow more closing costs to be refinanced into the new loan. Previously, refinanced closing costs were capped at $2,500; the new rule caps it at either 4 percent or $5,000, whichever is lower.
MORTGAGE SERVICERS ARE finding it hard to hire personnel, and the lack of staff—and increasing number of applications for modifications—is causing a tremendous backlog. It is not unusual for a servicer to take up to two months to issue a response, and documents often get lost in the shuffle.
MERSCORP’S NEW MERS Investor ID program will automatically send a notice to borrowers within 30 days, informing them of a change in ownership of a home loan. This small measure could have a positive impact on loan mods, which are often stifled as some borrowers have found it difficult to find out who actually owns their mortgages.
MORE STATES ARE requiring mediation between homeowners and lenders during the foreclosure process. In Indiana, a new law will take effect on July 1 imposing the requirement statewide; a similar law has already been in place for Marion County with positive results.
EXISTING HOME SALES were up 2.4 percent in May over April, but down 3.6 percent from May a year ago. Median prices dropped 16.8 percent for the year to $173,000 because of the high percentage of distressed properties on the market.
BORROWERS 60 DAYS or more behind on Fannie Mae or Freddie Mac mortgages reached 1.1 million in the first quarter compared to the year-ago quarter. The delinquency rate increased to 3.62 percent from 3.03 percent over the same period.
A PROPOSED PIECE of legislation would expand the existing $8000 first-time home buyer’s tax credit to $15,000, make all home buyers eligible, and eliminate income caps. The proposed legislation would also extend the credit to the middle of 2010.
FREDDIE MAC WILL no longer require that borrowers refinance through their original servicers, opening the door to greater options for finding the best deal on refinancing a Freddie Mac loan. The agency will also allow more closing costs to be refinanced into the new loan. Previously, refinanced closing costs were capped at $2,500; the new rule caps it at either 4 percent or $5,000, whichever is lower.
MORTGAGE SERVICERS ARE finding it hard to hire personnel, and the lack of staff—and increasing number of applications for modifications—is causing a tremendous backlog. It is not unusual for a servicer to take up to two months to issue a response, and documents often get lost in the shuffle.
MERSCORP’S NEW MERS Investor ID program will automatically send a notice to borrowers within 30 days, informing them of a change in ownership of a home loan. This small measure could have a positive impact on loan mods, which are often stifled as some borrowers have found it difficult to find out who actually owns their mortgages.
MORE STATES ARE requiring mediation between homeowners and lenders during the foreclosure process. In Indiana, a new law will take effect on July 1 imposing the requirement statewide; a similar law has already been in place for Marion County with positive results.
EXISTING HOME SALES were up 2.4 percent in May over April, but down 3.6 percent from May a year ago. Median prices dropped 16.8 percent for the year to $173,000 because of the high percentage of distressed properties on the market.
BORROWERS 60 DAYS or more behind on Fannie Mae or Freddie Mac mortgages reached 1.1 million in the first quarter compared to the year-ago quarter. The delinquency rate increased to 3.62 percent from 3.03 percent over the same period.
Monday, June 15, 2009
California Adopts Moratorium On Home Foreclosures
Today's the start of California's 90-day foreclosure moratorium.
Lots of questions this morning on the real meaning of California's new 90-day foreclosure moratorium beginning today - which got plenty of attention on national TV yesterday.
What's most important to remember: this does NOT stop foreclosures effective today.
It begins a process in which lenders must apply to the state for an exemption from the 90-day moratorium. Lenders must show the state they have an aggressive loan modification program in place to receive the exemption.
If the state approves it they are exempt from the moratorium - unless it's later discovered that they are falling down on the job of modifying loans.
Bottom line: Lenders that do NOT have aggressive loan modification programs in place will have to wait 90 days longer than usual to foreclose.
Essentially, an aggressive modification gets the amount owed down to 38 percent or less of a borrower's income. One of the worries, though, as this goes into effect: most of the new waves of borrower trouble is related to losing jobs. One wonders if any lender can get a loan modified to 38 percent of monthly income if most of the income is unemployment benefits.
Lots of questions this morning on the real meaning of California's new 90-day foreclosure moratorium beginning today - which got plenty of attention on national TV yesterday.
What's most important to remember: this does NOT stop foreclosures effective today.
It begins a process in which lenders must apply to the state for an exemption from the 90-day moratorium. Lenders must show the state they have an aggressive loan modification program in place to receive the exemption.
If the state approves it they are exempt from the moratorium - unless it's later discovered that they are falling down on the job of modifying loans.
Bottom line: Lenders that do NOT have aggressive loan modification programs in place will have to wait 90 days longer than usual to foreclose.
Essentially, an aggressive modification gets the amount owed down to 38 percent or less of a borrower's income. One of the worries, though, as this goes into effect: most of the new waves of borrower trouble is related to losing jobs. One wonders if any lender can get a loan modified to 38 percent of monthly income if most of the income is unemployment benefits.
Saturday, May 9, 2009
the BETTER do BUSINESS with us BUREAU
the BETTER do BUSINESS with us BUREAU
By Mandelman-http://ml-implode.com/
I grew up believing in our country’s institutions, and one of those was the Better Business Bureau.
Even as a young child, I remember Saturday trips to the hardware store with my father. We’d walk in and I’d watch and listen as my dad discussed something that sounded so technical, so important. The man behind the counter looked serious as his listened to what my father was attempting to fix, and then the two of them would go walking down an aisle to find that perfect part or tool that would make our lives that much better.
And I remember, always behind the counter, mounted on the wall, like a plaque of distinction, were the initials that signified this business as being a member of the Better Business Bureau… BBB.
I remember asking my father what BBB, the Better Business Bureau was all about. I remember him telling me that the Better Business Bureau was the place you could call if you had a problem with a business that had treated you unfairly. They would help right what was wrong. They were your protectors. Businesses had to treat people fairly or face the long and powerful arm of the Better Business Bureau. They made sure that life was fair. I grew up believing that the Better Business Bureau was the Business Police.
Of course, when we’re young, everything seems more powerful, more imposing, and as I grew-up and went into business for myself, I instinctively knew that the Better Business Bureau couldn’t possibly be the all-powerful institution that I imagined in my youth. But, I still had respect for the organization as being one that protected consumers from businesses that would harm them, or treat them unfairly.
I certainly never believed that the Better Business Bureau was just a franchise operation that went around selling the use of its widely recognized initials to businesses who paid whatever they asked for fear that the BBB would say bad things about them, or give them a negative rating. I certainly never believed that the BBB operated very much like a protection racket. Pay your dues or else? That’s not the BBB I grew-up with and I was shocked to learn the truth.
As it turns out, the Better Business Bureau is nothing more than a marketing gimmick that basically scares businesses into paying annual dues in order to be given an ‘A’ rating. Pay, get an ‘A’… choose not to pay, and you’ll be rated something less, regardless of whether the BBB has received any complaints about your business or not.
Of course, the Better Business Bureau also seems like a relic of days gone by. I can’t remember the last time I noticed the BBB plaque prominently displayed in a business. I’d never called them, and I never bothered to check with them before I did business with a company. Nowadays, with the power of the Internet at my fingertips, I “Google” a company to learn more about them, visit their Website, or read a review on one of the many Websites that offer information about products and services offered by companies around the globe.
But, while printed newspapers are struggling to survive and producing online versions, and the Yellow Pages doing the same, the Better Business Bureau has survived and perhaps even become that much stronger as a result of the World Wide Web. We may not think about it as much, but since we no longer have to call them to inquire about a company, it’s much easier to find out if a company we’re considering has the all-powerful rating… ‘A’… or something less.
We’re human beings in the U.S.A. and it’s been drilled into our mind throughout our developing years that receiving an ‘A’ is doing things right… getting a ‘B’ means something less. A ‘C’, we’ve been told is “average,” but we know the truth about a ‘C’… a ‘D’ is flat out unacceptable… and an ‘E’ or ‘F’ unthinkable.
Those letters, of course, refer to grades we receive in school, but we learn that they are the keys to our future. We grow up understanding that they will dictate how our parents will view us, where we will be allowed to go to college, and ultimately what we will do for the rest of our lives. So, when we see or hear that a company has a ‘C’ rating from the Better Business Bureau, we recoil in disgust… something’s wrong with that company… that’s a company to be avoided. We certainly don’t assume that the company with a ‘C’ rating from the BBB is simply one that chose not to pay the organization’s annual dues.
But that’s the truth of the matter. The companies with ‘A’ ratings are those that pay the BBB, the ‘C’ rated companies don’t. Lowe’s near my house has a ‘C’. Wal-Mart, which is just a few miles from Lowe’s, has an ‘A’. Guess which one is a member of the Better Business Bureau. That’s right… Wal-Mart.
The Better Business Bureau says that it has received 14 complaints against Lowe’s, but only one against Wal-Mart. But being a private company – and only a franchise of the national BBB organization at that – they don’t disclose any details, nor are they required to. And it’s pretty hard to believe, when you consider that there are over a million people living within 20 miles of my town, that Wal-Mart has only one complaint, while Lowe’s has fourteen. Maybe the BBB is the one that lodges the complaints… who knows.
Southwest Airlines… an ‘A’ rating. American Airlines… a ‘C’ rating. But American Airlines has roughly ten times the number of flights from my local airport than Southwest. Still, come to find out that Southwest is a member of the BBB, and American Airlines chooses not to pay what the BBB demands.
What kind of world do we live in when you can’t trust an organization like the Better Business Bureau? Talk about sad. What’s next? Will I find out that the Red Cross sells blood to the highest bidder? That the Salvation Army forces homeless people to work in sweatshops? I sure hope not. I’m not sure I could stand it. I think we need to believe in something, especially these days. I’m sure having a hard time trusting my bank, and I stopped trusting politicians before I graduated from high school.
I grew up believing that business is the backbone of America… that if I built a better mousetrap, the world would beat a path to my door. That things in this country would, for the most part be fair.
It’s sad to find out that it’s not always the case, but I suppose that’s part of growing up. That’s what they mean when they say “live and learn”.
So, I’ve learned that the Better Business Bureau isn’t what I thought it was. Oh well. I guess that’s just one more institution that’s out to make a buck… so what? Well, the “so what?” is that I’m in business today, and it’s hard enough to make it these days… there’s plenty of people shooting at you out there. We really don’t need an organization calling itself the Better Business Bureau trading on our memories, deceiving us into believing that they exist for our own good, when the truth is that they exist only for themselves.
I recently looked at the BBB Website because I saw that a law firm owned by someone I knew had received an ‘F’ rating. I called my friend and asked him if he knew. He did and was very upset about the whole thing. He explained that his firm was helping people negotiate with their mortgage companies to avoid foreclosure and that when he contacted the BBB they refused to even listen to what he had to say.
Being a writer, I decided to call them myself… check the whole thing out. Want to know what they told me? The woman on the phone said that her BBB franchise was simply giving all law firms involved in foreclosure avoidance services, such as loan modifications, an ‘F’ even if there were no complaints on file against them. I told her that sounded terribly unfair, and I asked if my friend’s firm could submit their case as to why they should receive a higher rating. She said he was welcome to do that.
But, then she said the sentence I won’t soon forget. She said: “They can submit whatever they want, but it’s not going to change a thing.”
I hung up the phone and thought to myself… “Wow. Someone should really report her to the Better Business Bureau.”
By Mandelman-http://ml-implode.com/
I grew up believing in our country’s institutions, and one of those was the Better Business Bureau.
Even as a young child, I remember Saturday trips to the hardware store with my father. We’d walk in and I’d watch and listen as my dad discussed something that sounded so technical, so important. The man behind the counter looked serious as his listened to what my father was attempting to fix, and then the two of them would go walking down an aisle to find that perfect part or tool that would make our lives that much better.
And I remember, always behind the counter, mounted on the wall, like a plaque of distinction, were the initials that signified this business as being a member of the Better Business Bureau… BBB.
I remember asking my father what BBB, the Better Business Bureau was all about. I remember him telling me that the Better Business Bureau was the place you could call if you had a problem with a business that had treated you unfairly. They would help right what was wrong. They were your protectors. Businesses had to treat people fairly or face the long and powerful arm of the Better Business Bureau. They made sure that life was fair. I grew up believing that the Better Business Bureau was the Business Police.
Of course, when we’re young, everything seems more powerful, more imposing, and as I grew-up and went into business for myself, I instinctively knew that the Better Business Bureau couldn’t possibly be the all-powerful institution that I imagined in my youth. But, I still had respect for the organization as being one that protected consumers from businesses that would harm them, or treat them unfairly.
I certainly never believed that the Better Business Bureau was just a franchise operation that went around selling the use of its widely recognized initials to businesses who paid whatever they asked for fear that the BBB would say bad things about them, or give them a negative rating. I certainly never believed that the BBB operated very much like a protection racket. Pay your dues or else? That’s not the BBB I grew-up with and I was shocked to learn the truth.
As it turns out, the Better Business Bureau is nothing more than a marketing gimmick that basically scares businesses into paying annual dues in order to be given an ‘A’ rating. Pay, get an ‘A’… choose not to pay, and you’ll be rated something less, regardless of whether the BBB has received any complaints about your business or not.
Of course, the Better Business Bureau also seems like a relic of days gone by. I can’t remember the last time I noticed the BBB plaque prominently displayed in a business. I’d never called them, and I never bothered to check with them before I did business with a company. Nowadays, with the power of the Internet at my fingertips, I “Google” a company to learn more about them, visit their Website, or read a review on one of the many Websites that offer information about products and services offered by companies around the globe.
But, while printed newspapers are struggling to survive and producing online versions, and the Yellow Pages doing the same, the Better Business Bureau has survived and perhaps even become that much stronger as a result of the World Wide Web. We may not think about it as much, but since we no longer have to call them to inquire about a company, it’s much easier to find out if a company we’re considering has the all-powerful rating… ‘A’… or something less.
We’re human beings in the U.S.A. and it’s been drilled into our mind throughout our developing years that receiving an ‘A’ is doing things right… getting a ‘B’ means something less. A ‘C’, we’ve been told is “average,” but we know the truth about a ‘C’… a ‘D’ is flat out unacceptable… and an ‘E’ or ‘F’ unthinkable.
Those letters, of course, refer to grades we receive in school, but we learn that they are the keys to our future. We grow up understanding that they will dictate how our parents will view us, where we will be allowed to go to college, and ultimately what we will do for the rest of our lives. So, when we see or hear that a company has a ‘C’ rating from the Better Business Bureau, we recoil in disgust… something’s wrong with that company… that’s a company to be avoided. We certainly don’t assume that the company with a ‘C’ rating from the BBB is simply one that chose not to pay the organization’s annual dues.
But that’s the truth of the matter. The companies with ‘A’ ratings are those that pay the BBB, the ‘C’ rated companies don’t. Lowe’s near my house has a ‘C’. Wal-Mart, which is just a few miles from Lowe’s, has an ‘A’. Guess which one is a member of the Better Business Bureau. That’s right… Wal-Mart.
The Better Business Bureau says that it has received 14 complaints against Lowe’s, but only one against Wal-Mart. But being a private company – and only a franchise of the national BBB organization at that – they don’t disclose any details, nor are they required to. And it’s pretty hard to believe, when you consider that there are over a million people living within 20 miles of my town, that Wal-Mart has only one complaint, while Lowe’s has fourteen. Maybe the BBB is the one that lodges the complaints… who knows.
Southwest Airlines… an ‘A’ rating. American Airlines… a ‘C’ rating. But American Airlines has roughly ten times the number of flights from my local airport than Southwest. Still, come to find out that Southwest is a member of the BBB, and American Airlines chooses not to pay what the BBB demands.
What kind of world do we live in when you can’t trust an organization like the Better Business Bureau? Talk about sad. What’s next? Will I find out that the Red Cross sells blood to the highest bidder? That the Salvation Army forces homeless people to work in sweatshops? I sure hope not. I’m not sure I could stand it. I think we need to believe in something, especially these days. I’m sure having a hard time trusting my bank, and I stopped trusting politicians before I graduated from high school.
I grew up believing that business is the backbone of America… that if I built a better mousetrap, the world would beat a path to my door. That things in this country would, for the most part be fair.
It’s sad to find out that it’s not always the case, but I suppose that’s part of growing up. That’s what they mean when they say “live and learn”.
So, I’ve learned that the Better Business Bureau isn’t what I thought it was. Oh well. I guess that’s just one more institution that’s out to make a buck… so what? Well, the “so what?” is that I’m in business today, and it’s hard enough to make it these days… there’s plenty of people shooting at you out there. We really don’t need an organization calling itself the Better Business Bureau trading on our memories, deceiving us into believing that they exist for our own good, when the truth is that they exist only for themselves.
I recently looked at the BBB Website because I saw that a law firm owned by someone I knew had received an ‘F’ rating. I called my friend and asked him if he knew. He did and was very upset about the whole thing. He explained that his firm was helping people negotiate with their mortgage companies to avoid foreclosure and that when he contacted the BBB they refused to even listen to what he had to say.
Being a writer, I decided to call them myself… check the whole thing out. Want to know what they told me? The woman on the phone said that her BBB franchise was simply giving all law firms involved in foreclosure avoidance services, such as loan modifications, an ‘F’ even if there were no complaints on file against them. I told her that sounded terribly unfair, and I asked if my friend’s firm could submit their case as to why they should receive a higher rating. She said he was welcome to do that.
But, then she said the sentence I won’t soon forget. She said: “They can submit whatever they want, but it’s not going to change a thing.”
I hung up the phone and thought to myself… “Wow. Someone should really report her to the Better Business Bureau.”
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