Ben Olson

There was an interesting editorial on CNNMoney.com today titled, "Why I Hate Facebook" by Paul R. LaMonica. He ranted a bit about a few "annoying" aspects of the social media website. One of his arguments was Facebook's Popularity vs. Profitability:

While it's impressive that it took Facebook only 5 years compared with 7 years for Apple to "sell" 150 million iPods, who has the better business model?

Facebook merely signed up people to use their service...for free. Apple sold a product...and a pretty pricey one at that. What's more, Apple (AAPL, Fortune 500) makes money when people buy music from iTunes for their iPod.

Now, whether you agree with Facebook's business model or not, be sure to understand that you can make money on Facebook, even if Facebook itself is not making money. I am reminded of the memorable quote by author and trainer Bob Berg:

"All things being equal, people will do business with and refer business to those people they know, like and trust."

This quote is just another reminder that we're ALL ultimately in the relationship business. Isn't this the core reason why we engage in online social media and blogging in the first place? We want people to find us, to get to know us, to like us, and to build trust with us.

Though I feel that it is important to "play by the Facebook rules" (i.e. upload family photos, comment on your friend's Wall, and update your personal status), there is certainly room to remind people what you do. Here are some thoughts:

• Photos - Upload photos of your newest listing. Upload a picture of your most recent marketing flyer or brochure.
• Status Updates - "Ben Olson is Pre-Approving another First-Time Homebuyer!" "Ben Olson is excited that Mortgage Rates Dropped Today!"
• Wall - Find your clients, become their friends, and write on their Wall! "John, Congratulations again on your new home. I am very excited for you and your family. I had fun working with you!"

But wait, here's the caution... DON'T OVER DUE IT!!! Don't forget why people are there... to connect and to have fun. If you honor the culture of Facebook, there will be more than enough opportunities to remind people about what you do. If you work Facebook and other social media outlets into your marketing strategy, and if you do it properly, people will begin to know you, like you, trust you and eventually want to work with you.

Want to be my Facebook Friend? :)

Ben Olson, Mortgages Unlimited, Maple Grove, MN 763-416-2620

The chart below was forwarded to me by a colleague. It lays out the primary differences between the original $7,500 Tax Credit for First-Time Homebuyers, which was created on July 2008, and the new $8,000 First-Time Homebuyer Tax Credit. I hope this helps to clarify how the new Stimulus Package will affect First-Time Home Buyers.

Please call me if you have further questions regarding these new changes.

Ben Olson, Minnesota Mortgage Specialist, Mortgages Unlimited, Maple Grove, MN 763-416-2620

CNN Money had a great article breaking down the new $8,000 tax credit for first-time homebuyers. It is expected to be signed into law today by President Obama.

Author, Les Christie, addressed the benefits and some very common questions regarding this provision for first-time homebuyers:

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision.

The scenarios can change slightly from buyer to buyer. So, be sure to consult a CPA or tax expert regarding your specific situation. Click here to read the full article.

Enjoy!

Ben Olson, Minnesota Mortgage Specialist, Mortgages Unlimited, Maple Grove, MN, 763-416-2620

In these times of economic turmoil, it seems like even the experts don't know exactly what to do, or even how effective any action will be.

Vox Day's article, "Stimulus Spelled Out", from World Net Daily does a wonderful job of simplifying the arguments: Should the Fed lower rates? Should the government fill in the spending gap? Should we do anything at all? In his very simplified analogy, Vox makes it easy to understand how our economy works, as he proposes a clear solution to the problem.

Here's an excerpt:

Consider a hypothetical example of an economy in which there are 100 cars. Because a car lasts for 10 years, every year 10 cars wear out and are replaced. But things have been going well and people are getting wealthier, so five of them buy second cars. The three car makers each sell five cars, and there are now 105 cars in the economy. However, in the second year, there is a stock market panic due to the failure of the Madagascar cashew harvest, so the central bank gets nervous and slashes interest rates. Ten cars wear out, and 10 are replaced, but thanks to the low interest rates, the automakers can offer zero percent leases and other creative forms of payment, which encourage 20 people to buy second cars. There are now 125 cars in the economy. Interest rates stay low for the next three years, and people continue to take advantage of the new car-financing deals, until there are 185 cars in an economy that only required 100 five years before.

Then, an Icelandic bank bets heavily on the Norwegian cod harvest and goes under. The global stock markets drop, people feel less wealthy, and car drivers decide to reduce their automotive consumption. Ten cars wear out, as always, but instead of being replaced by new cars, they are replaced by cars that still have seven good years on them sold by two-car owners who decide they really don't need their second car anymore. The car economy shrinks by 10 cars to 175 cars, but even worse, the annual gap between the demand and the supply capacity is 30 cars. So, what is the solution?

The monetarists would recommend cutting interest rates, but since they are already low, that's not a viable option. (And then, there is the fact that because low interest rates caused the problem in the first place, they cannot reasonably be expected to fix it.) The Keynesians would attempt to stimulate the economy by having the government fill in the demand gap by buying 30 cars, but this will only put off the problem for a year since there will be 30 more used cars available to the 10 people who will require replacement vehicles next year. The optimal solution is the Austrian one, which is to leave the economy alone and wait for the extra cars to wear out. This may be frustrating to the would-be hero politician who wishes to solve the problem through decisive legislation, but it is the only solution that will not make things materially worse in the future.

Doing nothing is admittedly difficult in times of crisis. But it is always wise to keep in mind that there is no crisis so severe that government intervention cannot make it worse.

Read the full article, and you too can feel a little smarter today. I know I do.

Ben Olson, Minnesota Mortgage Specialist, Mortgages Unlimited, Maple Grove, MN, 763-416-2620

$8,000 With No Repayment!

In the final moments of negotiation, the first-time homebuyer credit of $7,500 has been increased to $8,000... and it no longer needs to be repaid! Details are still coming so stay tuned.

The $787 billion stimulus plan is expected to pass within days.

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, Maple Grove, MN 763-416-2620