Mike's Blog

I have been reading more lately on Active Rain. I have been amazed at how much banter there is about points, gold stars, signing petitions. I ran across a post by Bob Mitchell about getting featured on Ative Rain.

Many of you know I wear my heart on my sleeve. I have opinions, they are mine. Active Rain is a place that allows opinions. In fact, it was built on that premise.

So, Bob Mitchell has his opinion, I have mine. Sue me. Sue us both. But, I did go read a lot more of Bob Mitchells other posts, and this is a smart guy.  Then, I got an email from someone here on Active Rain, did I go to far?.....So, my concience is starting to tug at me, making  me think I should revisit the post.. Here is my reply

Bob...I got an email stating that maybe my reply to your post was a bit harsh..Looking back at it, I guess someone who doesn't know me could get that impression.

 http://activerain.com/blogsview/528553/Spread-The-Love-Why

After making the comment, I took it a step further to not only read many of your prievious posts, but to subscribe as well. There is no doubt that manyof the same people get featured, but I have gotten past caring. There was a brief time when I had the time to think about writing posts that would get featured, I reviewed and rewrote, thought about where to place the posts,...didn't work 

I have been featured a hand full of times....I don't think I have an hour between all  my featured posts. One I know took less than 10 minutes,including graphics, about when I bought my GPS. That one got like 80 comments and was featured ..I was floored...Ditto for my other features..I profess to not have a clue as to what will work. I even tried witing a post with Jason Crouch in the title...nope...got me nothing but yawns.

But, a few of the posts I did put out got me direct phone calls, turned into deals, and led to the position I have now.  I get links to my website, and got listings from here that turned into deals. I have an appointment next week for a listing that I will share with an associate, because I don't really take residential any more. Unless its the whole subdivision.

So, if my comments were a bit harsh, then I am sorry to have offended the sensitive few here that may have recoiled in horror. after reading your personal and business profile, I doubt I made a chink in your armour.   Good job.. Cya

My preface to this post is a follow up on a Post by Mr Don Rodgers, an experienced veteran of many eras of Real Estate.  He just put out a post against a certain reporter that claimed this is not a good time to be buying Real Estate, and that your home should not be considered an investment.

So I took the time to read the article, and while it was a bit slanted, the guy was doing what most reporters do, and that is to tell a story. Maybe not the whole story, but as written, I could not poke many holes in it.. Then a very well meaning person Named Melody replied to the post, stating that the reporter was not a Realtor or a Broker, and therefore could not have a clue to what he was talking about..

What did she say....Whom among us has not met a dumb ass Realtor, you know, the one who passed the test on thier 4th try and it was still close....Anyway..here is my opinion, I hope I don't get sued.

Dear Melody...Having a Realtor License is no guarantee of financial knowlege, just look around your own office, or any office. The vast majority of Realtors I have met, and I have met plenty, are strictly commision driven, with no real understanding beyond what they get if the house sells.'I do primarily commercial and investment properties, and I find Realtors in foreclosure at higher numbers than regular folks.

 Brokers are known for listening to thier own sales talks and end up in the same boat. If we as Realtors practiced full disclosure, half our business would back up and wait for a better time to buy. The same Realtors who are out of business now are the same ones that were rushing thier customers to sign in the boom. Cash their commission check and then wait for the next fool to show up.

I personally have heard of agents changing thier phone numbers or moving as the homes they pushed their clients into at premium prices are dropping like a rock, and there is no one there to help them now. Most Realtors DID NOT educate the consumer as to what they were getting into, an as supposed proffessionals, bear a large part of the blame for allowing this mess to happen.

 I am a Realtor, since 1992. I have bought and sold over a 100 of my OWN properties, not counting what I have done for clients. On the other hand, I regularly run into Realtors who cannot fill in basic paperwork, do math, or even do a HUD for their buyers to calculate the closing. I run into Supposed Commercial Realtors who cannot do any financial accounting, or pass off incorrect numbers as facts, when their sellers or buyers are supposed to be counting on thier abilities.

Lenn Harley and others here talk about the 80/20 rule in Real Estate.  I think its much worse than that.

Hey..I have been out of touch for a while....SO when Lenn wrote a post about the VOWs not getting the job done, and the problems arising out of it, I was not sure what she was refferring to.  So, off to Google I go, where I find this article from Realty Times...a nice online Mag to look thru. After looking around a bit on Google, I discover that VOW means " Virtual Office Website" being offered by NAR and others. It seems harmless to me, but I have found there is always a problem.

Just today I heard of a lawsuit against Target Stores for not having thier online web deals fully accessable to the Blind...I will walk on eggshells here, I mean the bling no disrespect, but can the entire online community be targeted by lawsuits now because they are not accessable to the blind?? Apparently Target Online is offering deals better than what is in thier stores, creating an unfair advantage for shoppers with sight over blind shoppers...If they are trying to bring this issue to light, I guess it has worked, I never considered how the internet, which is a very powerful force, would not be available to all...HMMMMM

Back to my story.....

I have never gotten the hang of doing the link thing, so again, I give the credit for the following article to Realty TImes off the web...Go check it out...

Realty Executives' Bill Powers Says, "VOWs Aren't About Fees!" by Blanche Evans

Suddenly Bill Powers, COO of Realty Executives, finds himself to be the go-to pundit for media covering the investigation of the Department of Justice (DOJ) into NAR's online policies. During the NAR's mid-year governance meetings last week, CNN and USA Today both tapped Powers to be the counterpoint to the media's position that NAR is in the wrong to fashion an online listings policy for MLS subscribers.

"We have plenty more education to get through to the people that this issue is not about fees," says Powers. "It's about data rules."

Calling the DOJ's investigation into the NAR's virtual office Website (VOW) policy "misguided," Powers maintains that the real estate industry is "one of most competitive as well as being the most cooperative" of industries.

"What other industry shares its data to help the consumer with other competitors?" asks Powers rhetorically. "We have IDX (Internet Data Display), and we can put some of the information onto the Web and give that to consumers. That's a plus, but there is a lot of information that has no business being on the Web."

"We have no rules, and we have been trying to come up with [something] that doesn't stifle but increases competition, maintains a level of security, and offers consumers choices," he says.

Powers complains that the media spin is that somehow real estate data should be in the public domain, and that consumers are being prevented from having choice.

"It's preposterous that a USA Today reporter would have to share his notes and stories with all his competitors," suggests Powers. "He should imagine that when he hits the submit button to his editor that it also goes out to the Wall Street Journal, Time Magazine, and all his other competitors. And that when they post his story, he has to pay them for advertising his story!"

While the publishing industry has copyright laws preventing the illegal republication of intellectual content, the real estate industry has no such provisions, says Powers.

"You have to have rules," he maintains. "This is not a fee deal - that's the way it's being spun. We've had discount brokers for decades. The VOW and IDX rules have nothing to do with fees. The only ones who should be discussing fees are the broker and his client."

Powers continues with a spirited defense of the National Association of Realtors. "The 1.1 million Realtors who are members of the NAR include a lot of discount brokers," explains Powers. "NAR has never asked me what my fees are, and it's none of their damn business. The fee is decided by the consumer and the broker at the time they list the house, and market forces play a huge role. Fees have been dropping, and critics say, 'What about the appreciation? You are getting paid more money.' In boom markets there tends to be downward pressure on fees. As soon as the market corrects itself, and it will, pressure on fees will subside, because houses will be harder to sell."

"The NAR doesn't want to touch fees! If NAR was so anticompetitive, the '100 percent' concept would have been railroaded out of town. Now 40 percent of brokerages have it. I'm sure when Dale Rector (Realty Executives founder) and Dave Liniger (RE/MAX founder) got started - they didn't get grief from NAR - they got it from other brokers.

"When these guys and gals (discounters, third-party referrers) are losing and misleading the public by spinning this as a big industry attempt to squash new ideas, nothing could be further from the truth. They have been welcomed - that's what NAR is about, but NAR's idea is that everyone plays by the same set of rules."

Published: May 18, 2005

I see many things are changing.

Be careful of the banks, what will happen when they cannot balance thier sheets any more.

When banks MUST start dumping the foreclosures....when the FED can't cover....

Who will the banks turn to when the FED Can't cover...Who will the FED turn to when it can't Cover.

I read today that the new numbers are 6000 new foreclosures being filed EVERY DAY.

Remember when I was posting about lowball offers and getting Flack???

Yesterdays lowballs are todays current pricing.

What will todays lowballs mean by next month...Who will be collecting the payments on your mortgage?

Think ....Think........Can we continue to lose value at this rate without consequence?? Who is going to pay this bill. The players are lining up. The bills will be paid...at 20 cents on the dollar. The balance will be paid ...by us ..the taxpayers..

SO today I am doing my normal business, working on my contracts that are coming due soon. Its a nice busy time, we have several deals coming up to close...Yipee comes to mind!!!

My phone rings, a PRIVATE Number shows on the screen. By no fault of thier own, occasionially calls come thru that get blocked. So, about 20% percent of the time I will answer just to see who it is.

Now, lets just assume that I don't do well with Telemarketers.  I am not rude, I ...just have fun.  ANd today, it was Talking Houses turn. You see, I made a big mistake to do the gig with Talking House.  In my opinion, they are about as usefull as tits on a bull.  About as usefull as a Bicycle to a Fish. I hope you get my point.

Yes, even I still get caught up in useless Bullcrap like Talking House..I cannot make it work. I am such a poor salesman, according to them, that I cannot get a single mortgage company to sponsor one of my locations. In short, its not the Fault of Talking House, its just Me.

So, after a full year of having them all on a listing, I can say that they never brought me a deal. WHy??? I am so glad you asked...The sound quality is so poor that my Bose enhanced stereo sound Caddilac Radio can't hear the message thru the distortion...To say that I am unhappy with them is an understatement. All five of them are on a shelf in my garage for over 5 months now...Pure crap that I should have sent back on day one. ( my Opinion Only)

But today, the Irrepressable Salesman of the Year will be happy to sell me more, or to allow me to pay off my contract at a 10% discount. Now, the money saver part of me wanted to negotiate at this point, but the pissed off part of me that feels like I was duped refused to give these guys a cent before it was due. If I had had more time, I would have seen just how long I could have held him on the phone before he just hung up in frustration.

But then , I realized he is just trying to do a job, but he works for a company that sells a flawed product, in my opimion. So, I let him go, hoping he does not persade anyone else to sign up for 2 years of payments for a product that does not work in my area. In fact, I went on E bay to sell mine at a big loss, and saw a pile of them for even cheaper than I was going to start at.. I tell this to  the salesman, he says that he has no knowlege of this, in fact all of his cusomers are very happy.

I really hate it when a salesman tries to convince me that I do not have a problem, and that if I do, I am the only person in the history that has ever displeased with his product. I finally realize that he is determined to sell me more, and I can't stand what I have, and I hang up....This guy should be on the phone selling divining rods in draught stricken areas, he would make a fortune..

Some things simply don't work for me...Talking House is such a staticy mess, and they would not let me send them back for credit. So, if anyone has beter luck, and would like five more of these jewels, please call me... If you are another Talking House Hater, add yur comment below

These are my comments, my opinions, I mean no harm to a company that sells stuff that apparently does not work in my area. Hopefully, these electronic devices work well somewhere.....

Hello All, How's the world treating you.

Me, I'm tired. Its been a long month, with all the moving and weekend at the beach, and non stop working in Commercial Real Estate in between

Today was a great day. I starte early, and got up at 5:00 Am to get ready for a Land Conference down in Lakeland Fla. It was sponsored by Dean Saunders of Saunders Real Estate. Dean really put on a great show, he hosted the event at the Englebrooke County Club in Lakeland, Fl.

It was a standing room only event, with a full house of Whos' Who in the Land and Commercial Industry from Central and South Fla. Speaking at the event was Attorney Wade L Hopping, a former Justice of the Supreme Court, and now a Lobbiest Specializing in Land Use Law in Tallahassee Fl.  He spoke of what had happened over the last year and what he thought would happen in the coming year. At the end, he gave his thoughts on what should have happened..

Next we had Dr. Sean Snaith, PHD  another very smart economist that bases out of the University of Central Fla. He had a very good presentation complete with power point slides. If there was ever an economist with a sense of humor, Sean take the cake.

Last, we had Sam Chandan, PHD  Chief Economist for REIS out of New York...This guy is just crazy smart, and I cannot say much to do his presentation Justice. Together with the other speakers, they gave an updated Real Estate Forecast for our State, and our industry as a whole.

I find these events very informative to go to. The networking before and after is super, its hard to get this many players in one place at one time. My hat goes off to Mr Dean Saunders Of Coldwell Banker Commercial.

For  those of you that would have liked to have been there, I will include a link later when they post the video that was recorded today. If you dont get back, I will list where it may be found later, on the SaundersRealEstate.Com website.  It was a very great way to learn from some of the brightest minds I have ever had the priveledge of being in the presence of, these guys are really top notch. I was there representing Developers Capital Realty, LLC, and found many people willing to talk about upcoming land deals that will never see a listing sheet. It does pay to network, it really does.

Again, My sincerest appreciation to Saunders Real Estate for putting on this event. For those that missed it, you really will want to view the link when it becomes available.

There is a quiet undertone in the business. Those in the Know are whispering amoungst themselves.

The time is drawing near, the bottom is approaching. Like Sunrise, we know it will come, but there is no exact time to make the determination. There seem to be factors that would signal the approach of the bottom. Prices are dropping, but at a slower rate. Home sales are increasing, but not from traditional lending.

The investors, the real investors, have arrived. With thier Wall Street spreadsheets in hand, representatives from huge hedge funds are on the prowl. Called vultures by many, they have arrived with large checkbooks eager to snatch up the bargin basement bargins. But they are very cautious. These hedge funds represent pension funds, insurance company proceeds. They have an obligation to be perfect in thier decisions.

Many large builders have retreated, leaving subdivisions, apartment buildings, and commercial structures in various phases of complettion. Banks will not touch these projects,the losses are too fresh and the future to uncertian. But, the investors KNOW that these properties will come back to full value in due time, and they can afford to wait it out.

I work in this market, and its getting very busy now. The sleeping giants of cash investments are coming to shop, and we at Developers Capital Realty, LLC will have many properties to show them. The time is ripe for the next year or so for these bargin hunters, I spend my days gaining knowlege of the deals that are coming available to be purchased.

If you want to get involved in this high stakes purchasing game, you will need to do your homework. I have been working on spread sheets and pro forma software to best be able to present the opportunities. If you have a great deal that needs to be purchased for cash, with a quick close, then this is the time you have been waiting for.  Please contact me if you need help in preparing your projects.

Developers Capital Realty, LLc meets with several of these Representatives a few times a month to showcase bargin properties. Contact me, Mike Norvell Sr, if you would like to have a project presented. There is a lot of information necessary in order to make a real proforma projection, so be prepared. I will assist putting the project together on paper if you need help.

Don't miss out. We are actively loking for deals from a million to 25 million. If your deal is chosen, the pace is fast and furious, and suddenly its closed. Lets find a way to get a deal done,  thanks for Reading!!

Yes, there was a time when I was interested in doing BPOs', there was a process to be learned, a goal to be reached.

It was never about the money, I wanted to say that I was part of the process, that I had some input on the lender side of the Foreclosure Machinery.

I wanted t gain a greater knowlege of the appraisal process, I wanted to delve into an interspective train of thought that would require my knowlege of the area. WIth this in mind. I studied the MLS data, I studied Data Collection from other sources. I looked at Zillow, Bank Of America, and other evaluation sites.

If these sites have that much knowlege, why do the BPO companies utilize people to do this job. If you ever do the job, you will know. Homes in foreclosure tend to deteriate, and even experience vandalism. I did a report on one home that had a terrible experience 2 weeks before auction. Every wall in the home had been attacked with a tire iron and a hammer in an attack that must have taken an hour to complete.

What kind of anger is attatched to a house that makes the former owner go off like that. The home had been stripped as well, and what was left was terribly vandalized. I of course took pictures of the damage, and attempted to estimate the damage.

Doing BPO's was an interesting phase in my Real Estate Career.Thank God I did not do it for the money, The payment schedule varied by company, the worst was Evaluation Solutions. I got a check in this week for two "Emergency" BPOs' that I did in FEB, 2008. I know many Realtors are using BPOs' as a way to keep up thier local knowlege of their area, and to keep some gas money coming in. I believe that doing the BPOs' do assist in honing a necessary area of our Real Estate skills.  I took my appraising duties very seriously, I realized that what was being done would actually affect peoples lives in a small way.

Plus, I used to see the the numbers produced by others and wondered what kind of criteria was used to make these determinations. Now I know.  But waiting to get paid several months is not worth my time, I have learned enough to say that I have the experience.

Funny how something I really wanted to do for a while suddenly has no further interest to me..I now know how those BPO numbers are arrived at..by hiring crazy folks like me....NUff Said!!

I have been buying and selling distressed properties for a long time. We used to call the short sales a different name. They used to be called "Work Out Properties".

We used to be able to get a list from a local banker and we would have a short appointment to see what we could "Work Out" on getting the non performing assests off thier books. It was not that big of a deal to see the few deals they had available, and surprisingly, many of them actually had some equity left in the deal.

But with the lending practices that took over in the run up of 2002 thru 2006, there was a different approach to the whole process. Now the local banks were not making the crazy loans, they still had a local board, and tended to stick to basic banking principles. Its not that they didn't get caught, they just did not do the volume of the crazy lending.

So, as the investors took over the market, Wall Street was making billions per week pushing paper profits. A rising tide will  float all ships the same, so suddenly Mr and Mrs Homeowner were being tempted to refinance and pull cash out, or trade up into a bigger, monster house. All the homes were increasing in value in most neighborhoods, some areas went up over 100% in a few years, some went up more.

When the crash came, values began to drop, and sellers were looking at the false values the world had placed on thier property. Banks are looking at thier balance sheets dropping by the week,and when the foreclosure process starts, its really a long drawn out ordeal for a reason. The banks don't want the property back that is worth less than they have it mortgaged for. With NO ONE stepping up to purchase these assets, they drag their feet to not put them into an REO status.

In a nut shell, over 85% of all Central Fla properties are carrying a mortgage. Over 60% of these properties are worth less than the mortgage... If the banks foreclose all the properties at once, there will be a crash of the housing market as we know it. The comps of 50 cents on the dollar will kill the neighborhood values for YEARS to come, and the repercussions of all the homes dropping off the charts will be the worst recession in history.

So, when we are complaining about the banks not reacting quickly to all our lowball offers, think about this same deal in your neighborhood.......Times twenty. Just think what will happen when the banks start accepting all the low, below actual market offers. It won't matter if they are cash or not. The trick will then be to offer lower and then lower, based on the NEW established neighborhood values.

Be carefull what you ask for. Cause, when it does happen, and it will, there will be a terrible price that the normal people like me and you will have to pay. The banks will get thier bailout, and they will clear thier  balance sheets. 

It will not be pretty.

Today started like most. Up early, drink coffee made the night before while looking over the days schedule. I like mornings, and today I felt ready for what was to come.

I spent time chatting with my Wife as she got ready to go to work at her Job at the Lawyers office. She is a bright girl, and we are soon to celebrate our 22nd anniversary.  Her job involves doing doing Real Estate Closings, and her experience is really much greater than mine on the sheer number of closings she has done over the years. Before that she worked in a law firm that did Real Estate Litigation, together we learned what happened when Realtors did not play nice together.

But today, we both have busy days planned, and I listen to the woman I have promised to spend the rest of my life with talk about ........American Idol....

I promise, no matter what, to be home again on time to have supper and to have phones off, computers off, and for her and I to watch that show. For months we have kept that promise, with the exception of one time when I went to a Playoff game a week ago.

Our jobs can get so all consuming, and I am happy to have found a reason to just look forward to a "Date NIght" at home with my Wife. We don't talk business, just how Simon said this and Paula said that.

After a few weeks, American Idol will be over. My wife and I are two Real Estate Professionals that are making an effort to have a life, aside from our business. Yes, our business is fascinating, and its different every day, but we acknowledge we need a time to not talk Real Estate.

So, soon we will need to find a new "Date Night" activity.... Maybe we can do some ballrom dancing, bowling, years ago we did pottery/ ceramics. I don't want an activity that includes a bunch of drunks or drinking, just a nice time for us to look forward to.

We will think of something, I am looking forward to our new challenge. I think My Wife is too!