Nicholas Napoletano

Do you want more clients? Could you use the extra money?

If yes, then let me share with you how you can at least double the number of clients you currently have without you having to do anything you don't already do.

There is a secret in the real estate business. Those who know this secret make ten times more than the average. They are the Top producers, the winners of all the awards, the ones with clients continuously calling them.

Let me share that secret with you. And once I do that, I will also show you how you can harness the power of secret. And then I will show you how you can have someone do all the work for you - for free!

Why do I do this?

I want you to succeed. I know what it was like to be the little guy. If I help you, chances are you will help me as well.

Let me share a story with you. I started a marketing campaign of mailing out postcards to past clients as well as anonymous people. We get lists of home owners and mail them a marketing piece. Normally about 1% of the people call me from the mailer. They tell me that in direct mail, that's pretty good since the average response is something like .5%. Anyway, one month I screwed up and mailed the letters again to the same list we had mailed to the month before instead of to the new list. Needless to say I was furious. I hate wasting money. But to my surprise, we got another 1% in calls!

I couldn't believe it. We got the same response by mailing to the same people again. I figured this was more than a fluke so we mailed the same letter again to the same list the next month. With 2% response! I nearly fell off my chair when I heard that. It wasn't until the 6^th mailing that we didn't sell enough to cover our costs.

Why am I telling you this?

For several months we would only mail to the lists once and throw the names away. We were losing thousands in revenue and we never even knew it.

How much in commissions are you losing every month without knowing it?

What we did, is what you need to do, once you get a bona fied lead, you need to constantly, aggressively, annoyingly, repitiously, entertainingly, follow up with this lead until they buy from you or die.

But you don't. I know because no one does.

In direct sales, studies have shown that 82% of sales are made in the 2^nd through the 8^th contact with a prospect. If you are not following up, you are losing 82% of your potential sales.

99% of realtors do not do this right.

But following up has to be done the right way. Adding someone to your mailing list and sending them a generic newsletter every month will not get the job done. Sending them a postcard every season or calendar once a year does not get you a front seat in their conscious mind.

How many dozens of listing appointments have you been on where there is another realtor's magnet on the refrigerator?

Here's the secret: Listen closely.

Follow up is not good enough!

You have to have personalized follow up

•- Phone calls

•- Personal letters

•- A credit rebuilding program

•- Constant education

Personalized follow up keeps you in touch with the prospect until they are ready to buy or sell. It keeps you in their conscious mind, not just on their fridge, underneath their kid's drawings. It allows you to put handcuffs on your prospects and the only way they get loose is by using your services.

Good Selling!

NN

The 10 Biggest Blunders
You Can Make When Buying A Home!

1. Losing Money With Lower Interest Rates.

Some loans have very attractive interest rates (also known as teaser rates) but you may be hit with higher upfront charges. Points and/or origination fees are the most common ways to lower the rate and charge up front costs. When searching for a mortgage, ask the lender if they are charging points or origination fees. Points and origination fees are calculated as a percentage of the loan amount. See example below.

$300,000 Mortgage
1 Point = 1% of the loan amount	=	$3,000 paid at closing
2 Points = 2% of the loan amount	=	$6,000 paid at closing

Beware of Adjustable Rate Mortgages (ARM's) and Balloon Mortgages. ARM rates will adjust depending on the loan. The ARM rates may adjust as often as every six months but in most cases they adjust after one, two, three, and five years. Those rates are far more likely to go up when they adjust. The Balloon Mortgage requires the borrower to pay the loan off when it matures, usually between two to seven years.

There are many lending tactics to sell the borrower on a low rate and then charge outrageous fees and costs. Don't fall into the "bait and switch" lending ploy.

2. Getting a Loan From Your Real Estate Agent or the Mortgage Company in Your Real Estate Agent's Office May Not Save You Any Money.

Many real estate companies and individual real estate agents are now offering mortgage loans as well as real estate services. It has been my experience that some Realtors are not educated enough and do not have the experience to originate mortgage loans. They spread themselves too thin and it ultimately hurts the borrower. Realtors sell real estate and Mortgage Companies originate mortgage loans.

Also, using a mortgage company that is affiliated with a real estate company may cost you more. It may be slightly more convenient, but it also can be a lot more expensive. Competition drives rates and costs down. In the controlled business arrangement with a Realtor or a Realtor-owned Mortgage Company, you lose that competition.

3. Buying a Home from the Listing Agent May Not Be In Your Best Interest.

The listing agent is the person who makes an agreement with the seller to sell the home. The seller agrees to pay the listing agent a commission for marketing and selling their home. The listing agent is working for the seller and will consider the seller's needs before the buyer's. Having your own agent (selling agent) does not cost you any more money. The seller will pay the same commission for the sale if you do or do not have your own agent. Having your own agent allows there to be someone in your corner. A selling agent can help you find a house, confirm the value, help with inspections and financing, and answer any other questions you may have.

4. Buying FHA, VA, or IRS Repossessed Homes May Be A Mistake.

I am not against purchasing a repossessed or discounted property. In many markets, especially those that are having financial trouble, a repossessed home may make good sense.

However many VA, FHA, and IRS repossessed homes are sold with virtually no warranty. Also, the borrower may be limited on how much they can inspect the property prior to purchasing it. Often times these houses are in need of repair and need work. Not being able to thoroughly inspect the property puts the purchaser in a risky position.

There are some bargain properties, but for the most part investors who have the "know how" purchase them. Loans with zero or little down payment typically will have higher property standards.

Keep in mind that purchasing this type of property requires bidding for it. The people you would be bidding against rehab houses for a living, so you may be at a disadvantage from an experience stand point. In addition, most homes that are for sale under these conditions require a substantial up-front deposit that may not be refundable should your loan not close within a specific period of time.

5. Bad Credit Stays On your Record for 7 Years or More.

This is true, but in most cases loans are evaluated on the last 12 --24 months. They may totally disregard ANY adverse credit issues prior to that 12-24 month window. Most of the loans with zero or no money down cater to those who need leniency in the area of credit.

Also, having not re-established credit doesn't mean you cannot get a loan. There are other means for a lender to establish credit history.

6. Credit Counseling May Harm Your Credit Rating.

In certain instances, consumer credit counseling services may be a wise decision. These services can provide education and help with debt problems. The Credit Counseling Company will set a budget for the client based on their income and how much debt there is to pay off.

The problem comes when counseling companies do not meet the client's monthly obligations with their creditors. As a result, they begin to have late payments on their credit report. In other words, they may not meet the creditor's minimum monthly payment requirements because the budget calls for a lesser payment.

Overall, credit counseling is an effective tool to reduce debt as long as they meet the client's due dates and the minimum monthly payment.

7. Getting Your Mortgage Loan from the Internet May Cost You.

It could be a costly mistake if you get a loan online from a company in different parts of the country. There are different rules and guidelines for different states, cities, and even counties. It can be risky to obtain a mortgage loan from a company across the country if they are not familiar with the rules that govern the area where the property is located.

Typically local companies will be more concerned about their reputation and doing a good job for their customer. I operate from referrals so it is very important that I meet my customers' expectations. Getting a loan online can also take longer because they will not have service companies (title companies, appraisers, and others) to do the job in a timely manner.

Mortgage loans are complex and may not make sense to purchase online. This is especially true if the borrower is looking for maximum service and care.

8. Working with a Mortgage Lender Who Only Has One Product To Sell May Not Meet Your Specific Needs.

For the fifteen percent (15%) or so of a bank's customers that are "Private Bank Clients" (big bucks, big money for the bank), the bank may have the best deal for you. If you don't fall into that category, I would suggest that you get a mortgage lender who has the knowledge and loan programs to meet your needs.

Most lenders only have one source of funds. This type of lender is forced to "fit" the customer into a prefabricated loan program. They only have one or two different ways to handle the many different loan situations that occur.

It is important that you research your lender and try and get everything in writing. Also, it is easy for the wrong lender to take advantage of the borrower because of the borrower's vulnerable position. Most first time homebuyers need to be educated on the process of purchasing a home. I feel an educated borrower has the ability to make their own decision, a decision that is best for them. Often times a lender will make a decision for you based on the loan that will put the most money in their pocket.

9. Paying Upfront Costs Before You Know Exactly What Type Of Loan You Are Being Offered.

It is common for lenders to collect for the appraisal and credit report before they even look at your request. They do this to keep you loyal to them. Be very careful about what you pay for and when you pay it. Again, get everything from the lender in writing and make sure you are comfortable before you pay them any money.

I do not charge my customers anything during the initial loan process. They will pay for the services of the vendors we use at the closing.

10. Get A Pre-Approval From Your Mortgage Company Before You Start Shopping For A Home.

Having a pre-approved loan can be very important. A pre-approval has two major benefits. First, you will have peace of mind before you get serious about buying a home. You will know how much of a house you can afford, what the payments will be, and how much of a down payment is needed. Secondly, having a pre-approval may give the borrower bargaining power when negotiating a price for the home.

For example, if three buyers are looking at the same house, the seller will probably look closer at the buyer who has been pre-approved. Also, getting pre-approved may allow the borrower to get a better price for the property.

Take Care

Nicholas Napoletano

FR Elite a division of Financial Resources is a private mortgage firm that caters to high net worth clients. FR Elite is looking for the cream of the crop. If you feel you have what it takes to be part of our "Elite" team of private mortgage bankers. Come join our direct lending bank of over 100 employees in our new Red Bank location.

We are licensed in over 20 states and have corresponding lending with the top banks in the industry. Last year alone the company wrote over $2.5 million in mortgages. Take advantage of our unique pricing engine and lead generating system. We have top payouts. There are 401k and benefits available.

Send resume to nnapoletano@e-mailfr.com or fax 732-907-1264 Attn: Nicholas Napoletano

Those credit card offers just keep coming. Seems there's hardly a day goes by that your mail box is not stuffed with some new bank offering some new credit card. But there's a danger lurking for you also, one you may already be painfully aware of. Over use of credit cards is crippling the spending power of millions of Americans. The following is the truth about what really goes on behind the scenes at your credit card company.

Dirty Little Secret #1: Debt Addiction

Consumer debt is way out of control, but the dope (I mean "debt") pushers just keep on pushing. The average consumer has 7 credit cards with an average balance per card of $2500. (That's $17,500 in debt in case you haven't done the math!) 60 million Americans charge an average of $6,000 on credit cards every year. Sure, there's safety in numbers, but is this the company in which you want to belong? I don't know about you, but I'd much rather belong to the "below average" customer group that has less than $1000 in TOTAL credit card debt.

Credit card companies keep offering us new cards every week (think of how many you have gotten in the last year!) with higher credit limits and cash advances. Basically, they insult our intelligence. Many consumers are flattered when they receive their "PRE-APPROVED PLATINUM VISA, just fill out the form below, sign and send back" letter. We think we're being rewarded for a job well done. The job, of course, being able to spend money with the best of them and pay it back better than most. Don't get SUCKED into this mental trap!!! STOP TRYING TO KEEP UP WITH THE JONES'. THEY'RE HEADED FOR BANKRUPTCY ANYWAY!

Dirty Little Secret #2: The Never Ending Balance

If you make the minimum payment due on your average balance of $2500 each month, your credit card won't be paid off for over 30+ years! It's called "amortization," or in the case of credit card repayment, I should say "lack of amortization." In lay people's terms, this simply means, you have no real term set in order to pay this back. It's open-ended, as in "NEVER ENDING!!"

They'll let you pay on that same balance forever if you like. When you buy an automobile, you may finance it for five years. You know if you never send an extra dime but your monthly payment to that loan company or bank you will own that car on the day of your 60^th payment. But that's not the case with credit cards. They are "revolving" accounts. Kind of like the earth revolves around the sun... I guess you can say they are like the Energizer Bunny, "THEY KEEP GOING, AND GOING, AND GOING, AND GOING, AND GOING..."

Dirty Little Secret #3: The Transfer Trap

Because banks know that credit card usage is at an all time high, most of them are killing each other to get your business. Many offer promotions like transferring balances from other cards to the new card they are offering you. If you transfer balances from other cards, they say they will charge you a reduced rate of interest on those portions that are transfers. This sounds like a great deal (going from 18% to a promotional rate of say, 9.9%); however, most of them have a catch. For instance, if you do not charge something on the new card each and every month, the interest goes up to the regular rate of the card (which is often high), or if you make one late payment, you forego the lower promotional rate, and the rate again goes up to the regular rate of the card. Beware of the "Transfer Trap." All you're really doing is transferring your agony from one company to another, and avoiding the real solution; finding a workable plan that will get you debt free once and for all.

Dirty Little Secret #4: Minimum Payment Misery

If you keep making your minimum payment only, your balance will rarely ever get paid off. Have you ever noticed how, while your minimum payment due on your credit card is $85, your balance only came down $6 dollars? WHY??? That's because we pay un-Godly amounts of interest on credit cards. Even the so-called "low-interest rate" credit cards don't show their payments going toward bringing down their balances. All they do is just require a lower minimum payment. Sure, this might help your monthly outgo right now, but what's it doing to get you out of debt faster? NOTHING! That's because the MINIMUM PAYMENT DUE ON CREDIT CARDS ARE BASICALLY "INTEREST-ONLY" PAYMENTS, and making the minimum payment on a credit card is a guaranteed way to NEVER PAY IT OFF! Suppose you owe $2,000 on a card with 19% interest and a 2% minimum payment. Paying just the minimum every month, it will take you 265 months--over 22 years--to pay off the debt, and it will cost you nearly $4,800 in interest payments.

Doubling the amount paid each month to 4% of the balance owed would allow you to shorten the payment time to 88 months from 265 months--or 7 years as opposed to 22 years--and save you about $3,680.

Dirty Little Secret #5: Fine Print Fiasco

Example: Your rate of 6.9% is a teaser rate. After six months, your rate will be 21%. The Teaser, a.k.a. introductory rate credit card has made credit card banks and centers BILLIONS of dollars. Because so few consumers ever read the FINE PRINT. You know, the print that only the eyes of a 12-year-old can read without getting a migraine? These credit cards come with stipulations. There are too many "catches" to name. But, I assure you, they are there. Credit card banks don't make any money if they are financing your debt at below Wall Street Prime interest rates. So I leave you with one last thought on this topic, "IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS."

Fight Back by Understanding These Terms

The key to reading your credit card statement is to understand the terms on it. Here are explanations of common terms:

· Amount due: Some cards use this term to describe the minimum monthly payment. This is not the total you owe on the card.

· Annual percentage rate (APR): This is the finance charge, expressed as an annual figure, such as 21%.

· Cash advance: A loan in the form of cash (as opposed to purchases of goods or services) made through a credit card.

· Due date: The date by which your payment must be received by the company, for you to remain in good standing.

· Finance charge: The interest charge on your outstanding credit card balance.

· Grace period: A period in which you can make new purchases without paying interest. (Not all cards have a grace period.)

· Late fee: A charge assessed if your payment is recorded after the due date.

· Minimum monthly payment: The smallest amount you can pay to avoid being delinquent. Paying the minimum is the most expensive way to handle your credit card bills.

· Monthly periodic rate: A fraction of the APR (1/12), the rate at which interest is assessed during the billing period.

· New Balance: The total owed after new charges and credits have been added up.

· Over-credit-limit fee: A charge assessed if you put charges on your credit card that exceed your approved credit limit.

· Previous (or outstanding) balance: The amount you owed last month, after that month's payments and charges were added up.

· Transaction fee: A charge for making a purchase or receiving a cash advance.

Dirty Little Secret #6: The Cruel Cost of Cash Advances

A cash advance is a loan billed to your credit card. You can obtain a cash advance with your credit card at a bank or an automated teller machine (ATM) or by using checks linked to your credit card account. Most cards charge a special fee when a cash advance is taken out. The fee is based on a percentage of the amount borrowed, usually about 2% or 3%. Some credit cards charge a minimum cash advance fee, as high as $5. You could get $20 in cash and be charged $5, a fee equal to 25% of the amount you borrowed.

Most cards do not have a grace period on cash advances. This means you pay interest every day until you repay the cash advance, even if you do not have an outstanding balance from the previous statement. On some cards, the interest rate on cash advances is higher than the rate on purchases. Be sure you check the details on the contract sent to you by the card issuer.

Here is an example of charges that could be imposed for a $200 cash advance that you pay off when the bill arrives:

· Cash Advance Fee = $4 (2% of $200)

· Interest for one month = $3 (18% APR on $200)

· Total cost for one month = $7 ($4 + $3)

In comparison, a $200 purchase on a card with a grace period could cost $0 if paid off promptly in full.

THE BOTTOM LINE: It is usually much more expensive to take out a cash advance than to charge a purchase to your credit card. Use cash advances only for real emergencies.

Dirty Little Secret #7: Hidden or Unexpected Fees

Most people look for a card that doesn't have an annual fee, but did you know that there are other fees that can cost you more in the long run?

· Late fees Most cards charge a fee when payments arrive late, after the due date. Some banks wait a few days before assessing this fee, but many impose it the day after the payment was due.

Some companies have a set fee, such as $10 or $15, while others charge a percentage, such as 5%, of the minimum payment due. Just paying late fees twice in one year can cost you more than an annual fee.

To avoid late fees, mail your payment in plenty of time to arrive before the due date. If you pay your bill at the bank's branch or ATM, find out how long it will take to process your payment. Sometimes payments made at a branch or ATM are not credited for a few days.

· Over-credit-limit fees Most cards assess a fee if you charge more than your credit limit. These fees are charged each time you exceed your limit, so you could be hit with several of them during one billing period.

Most banks have a set fee, such as $10 or $15, while others charge a percentage, such as 5%, of the amount you are over your limit.

If you charge $400 over your limit, with a 5% penalty, you will pay a fee of $20. This is in addition to interest charges.

· Lost card replacement fees A few companies charge people whose cards have been lost or stolen more than once or twice. These fees are usually $5 or $10.

Pay Attention! Special fees can cost you a lot, so keep track of when you mail your payments and how much credit you have left.

Dirty Little Secret #8: Sneaky Ways They Calculating Interest

Most banks use an "average daily balance" method to calculate interest.

Average Daily Balance Method

1. Every day, the bank adds your charges and payments to learn what you owed it that day. It adds these totals and divides that figure by the number of days in the month, to determine your average daily balance.

2. Then the bank divides its annual interest rate by 12 (the number of months in the year) to get a "monthly periodic interest rate." For example, an 18% interest rate divided by 12 equals a monthly rate of 1.5%.

3. The bank multiplies your average daily balance by the monthly periodic interest rate, to obtain the finance charge for that month.

In calculating your daily balance, most banks include charges made during the month ("average daily balance, including new purchases"). Others exclude those charges until the next statement ("average daily balance, excluding new purchases"), which is to your benefit.

Dirty Little Secret #9: Two-Cycle Billing Method

Some banks retroactively eliminate the grace period by using a "two-cycle billing method." If you don't pay the entire balance, the finance charge is based on the sum of the average daily balances for both the previous and current months. (Some banks exclude new purchases from the finance charge calculation of their two-cycle billing method.)

You are only charged for a two-month time period in the first month you don't pay all charges. People who sometimes pay in full and sometimes leave a balance will pay about the same amount under the two-cycle method as with a "no grace period" card.

THE BOTTOM LINE: You should know how your bank calculates finance charges.