Brian Hurt, ABR, E-Pro

In this day and age of cell phones, smart phones, smart pads, Ipads, etc., we as Realtors have had to rethink how we do business. We now have the tools to be accessible at all times and do our work from pretty much anywhere. Work from home, on vacation, or at the cabin.

But I've started to notice a disturbing trend in my office here in Minnesota. Many of the agents in my office have become so dependent on this technology that they have become slaves to it. It used to be when someones cell phone rang in a team meeting you were expected to pay $5.00 to the office kitty because you were expected to either leave the phone in your office or turn it off. Now a meeting can't go 5 minutes without someones phone ringing for either a phone call, text or email notification. Now this is accentuated by the fact that most of the agent then have the audacity to answer it or check and respond to an email right in the middle of the meeting!

A wise Realtor first told me when I got into the business, "Where ever you are, be there". I didn't quite understand at first but it has become abuntantly clear to me now. It is highly unlikely that something so important is happening in that 1 hour span, that you can't leave your phone unanswered. It's unprofessional and quite rude to whoever is presenting or speaking. Of course try and get that message across to a group of starving Realtors in one of the worst economic environments!

I recently had a client who was in to process of being relocated. He was upside down on his mortgage and had to do a short sale. I told him it would be wise to contact his lenders to inform them of the situation. When he did this, the lien holder on his second mortgage asked him if he would prefer to work out a settlement instead. Not knowing exactly what this meant, he thought why not.

Long story short, the bank came back and told him they would take 33 cents on the dollar and remove their interest in the home. so he had to come up with the funds, but it allowed him to sell his home without a short sale and actually put a small amount of money in his pocket when it's all said and done.

I thought this can't be possible. When does the bank agree to work with someone when they aren't already showing financial distress? So having a second mortgage of my own, I thought it can't hurt to call. I contacted my lender and told them I was requesting a 'Settlement' on my mortgage. After a few brief questions, they sent out a 4 page packet and said they would see what they could do. Two weeks later, they agreed to take 20 cents on the dollar!

Imagine my surprise. I thought I had just hit the lottery. I had a number of professionals look at the settlement agreement they had sent me. they all agreed that this was a legitimate proposal and they I would be a fool to pass it by. So I went ahead and wired the money and now have equity in the home. I am still waiting to receive my satisfaction letter, but should be receiving this in the next week.

So is there a catch. Maybe. First off, I've had people warn that the bank may 1099 me and count it as income. This may be true, though the 'Debt Forgiveness Act of 2007' passed by Bush explains why this may also be forgiven in a number of situations. I won't go into too much detail, but if this is a route you or your client takes, make sure to read up on it. It could be very valuable. Secondly, you obviously have to have some available funds. they put a deadline on when they will accept this agreement and it's typically very short. Lastly, while it may not damage your credit score as long as you are current on your payments, it will create a mark on your credit record that may need explanation down the road. But that should be pretty simple. "I asked the bank to take less, they said yes!"

Now this is seemingly new ground that's been broken. Until 2 months ago, I had never heard of such cooperation. Since then I've mentioned this to 2 other clients and they received a similar response and are in the process of working something out. So depending on the situation, you may have the ability to fore go the short sale process, sell your home quickly, and maybe even put a little money in your pocket when it's all said and done.

I recently had a client who was in to process of being relocated. He was upside down on his mortgage and had to do a short sale. I told him it would be wise to contact his lenders to inform them of the situation. When he did this, the lien holder on his second mortgage asked him if he would prefer to work out a settlement instead. Not knowing exactly what this meant, he thought why not.

Long story short, the bank came back and told him they would take 33 cents on the dollar and remove their interest in the home. so he had to come up with the funds, but it allowed him to sell his home without a short sale and actually put a small amount of money in his pocket when it's all said and done.

I thought this can't be possible. When does the bank agree to work with someone when they aren't already showing financial distress? So having a second mortgage of my own, I thought it can't hurt to call. I contacted my lender and told them I was requesting a 'Settlement' on my mortgage. After a few brief questions, they sent out a 4 page packet and said they would see what they could do. Two weeks later, they agreed to take 20 cents on the dollar!

Imagine my surprise. I thought I had just hit the lottery. I had a number of professionals look at the settlement agreement they had sent me. they all agreed that this was a legitimate proposal and they I would be a fool to pass it by. So I went ahead and wired the money and now have equity in the home. I am still waiting to receive my satisfaction letter, but should be receiving this in the next week.

So is there a catch. Maybe. First off, I've had people warn that the bank may 1099 me and count it as income. This may be true, though the 'Debt Forgiveness Act of 2007' passed by Bush explains why this may also be forgiven in a number of situations. I won't go into too much detail, but if this is a route you or your client takes, make sure to read up on it. It could be very valuable. Secondly, you obviously have to have some available funds. they put a deadline on when they will accept this agreement and it's typically very short. Lastly, while it may not damage your credit score as long as you are current on your payments, it will create a mark on your credit record that may need explanation down the road. But that should be pretty simple. "I asked the bank to take less, they said yes!"

Now this is seemingly new ground that's been broken. Until 2 months ago, I had never heard of such cooperation. Since then I've mentioned this to 2 other clients and they received a similar response and are in the process of working something out. So depending on the situation, you may have the ability to fore go the short sale process, sell your home quickly, and maybe even put a little money in your pocket when it's all said and done.

It's the beginning of a new year and if you haven't already started planning for next year, now is the time to do it. So many agents approach this business as more of a hobby. That's great and fairly stress free of you're not the bread winner in the family and the income is merely supplementing what's already adequate.

But for most agents, this is what pays the bills. And if you are in this boat, you better start treating it as a business because that can be the difference between success and failure.

So "As a business, the most important aspect, other than prospecting for clients, is to create a budget". But where do you start? Start with last years information. You should be documenting every penny you spend because if you dont' know how much you're spending, you don't know how much you need to make. And I mean really break it down. I like to use Quickbooks as it allows me to be as general or

broad as I'd prefer with categories, sub-categories, etc. I've heard so many agents take the approach that they spend it when they have it. Well, I think I would have a heart attack by summer if I took that approach! Know your numbers. It allows you to prepare and also allows you to grow as you will want to improve on last years profits.

Secondly, know how much you need to survive. This pertains to your personal expenses. We all know that we have good months and bad months. You can make things a lot easier on yourself if you figure out what you need to make each month to survive and make that your bench mark. I've learned to live a reasonably frugal lifestyle, much to the chagrin of my wife. :) But we are able to pay our bills and I'm able to do my job without worrying about making the sale to pay a debt. If there's leftover at the end of the year, that's super! You just provided yourself with a great Christmas and maybe little spending money after the fact.

Lastly, stick to the budget you've made for yourself. It's not useful if you don't use it. You need to review your budget versus your actual spending on a monthly basis. I've seen dozens of Realtors with good intentions who start the year off knowing exactly how much they need to make and how much they should spend. Then guess who rolls up in a new Cadillac because they had one big month? Create, review, and revise. That's the key.

So if you're like me, you got into this business because you love working with people and you love buying and selling real estate. But to be truly successful in this industry, you need to learn how to treat this as a business and run it as such. So look at last years numbers, make your budget, and most importantly, use it!

It's the beginning of a new year and if you haven't already started planning for next year, now is the time to do it. So many agents approach this business as more of a hobby. That's great and fairly stress free of you're not the bread winner in the family and the income is merely supplementing what's already adequate.

But for most agents, this is what pays the bills. And if you are in this boat, you better start treating it as a business because that can be the difference between success and failure.

So "As a business, the most important aspect, other than prospecting for clients, is to create a budget". But where do you start? Start with last years information. You should be documenting every penny you spend because if you dont' know how much you're spending, you don't know how much you need to make. And I mean really break it down. I like to use Quickbooks as it allows me to be as general or broad as I'd prefer with categories, sub-categories, etc. I've heard so many agents take the approach that they spend it when they have it. Well, I think I would have a heart attack by summer if I took that approach! Know your numbers. It allows you to prepare and also allows you to grow as you will want to improve on last years profits.

Secondly, know how much you need to survive. This pertains to your personal expenses. We all know that we have good months and bad months. You can make things a lot easier on yourself if you figure out what you need to make each month to survive and make that your bench mark. I've learned to live a reasonably frugal lifestyle, much to the chagrin of my wife. :) But we are able to pay our bills and I'm able to do my job without worrying about making the sale to pay a debt. If there's leftover at the end of the year, that's super! You just provided yourself with a great Christmas and maybe little spending money after the fact.

Lastly, stick to the budget you've made for yourself. It's not useful if you don't use it. You need to review your budget versus your actual spending on a monthly basis. I've seen dozens of Realtors with good intentions who start the year off knowing exactly how much they need to make and how much they should spend. Then guess who rolls up in a new Cadillac because they had one big month? Create, review, and revise. That's the key.

So if you're like me, you got into this business because you love working with people and you love buying and selling real estate. But to be truly successful in this industry, you need to learn how to treat this as a business and run it as such. So look at last years numbers, make your budget, and most importantly, use it!