John Mayer

This was in the Orlando Sentinal and it makes a lot of sense. 2009 will be a tough year!

Business advice: Take care of your customers

ORLANDO, Fla. – Feb. 9, 2009 – What does one of Central Florida’s top economists have to say about operating a small business in a recession?

Evolve. Take care of your customers. And don’t cut corners.

Sean Snaith, an economist with the University of Central Florida, spoke recently to small-business owners during an economic forecast sponsored by the school’s Small Business Development Center in downtown Orlando.

“When times are good, even bad businesses can stay in business,” Snaith said. “If you can survive it, then I think you thrive when we get to the next expansion.”

To survive the “economic Darwinism” that occurs during a recession, Snaith suggested that businesses expand their offerings and focus on customer-care strategies, including being empathetic.

“Consumers are under siege,” he said. “To keep them spending their money at your business requires a little bit of extra effort on your part.”

While business owners may have to cut costs in hard times, Snaith cautioned against cutting corners or being short-sighted. Marketing still matters – and small-business owners can use phone calls, e-mails and their Web site to reach out to customers in a low-cost way.

“Not every type of marketing requires spending money,” Snaith said.

For Florida, 2009 will be a “lost year” that’s all about survival, Snaith said. He expects an economic recovery to begin in 2010. Commercial real estate will be the bad news story of the year, he said.

“The good news is, I think once we get out of this recession, we’ll see a decent recovery,” he said.

Small businesses, big fears

Small-business owners aren’t as optimistic as they used to be, and the National Small Business Association hopes that sends a strong message to Congress.

In a year-end survey of small businesses, 75 percent of the respondents cited economic uncertainty as one of their top three challenges, up from 53 percent in August.

More than a third of those surveyed were not confident about the future of their business, the association said.

“Coming from traditionally upbeat entrepreneurs, this number ought to send a strong message to Congress – as they craft an economic-stimulus package – that small business is struggling,” association President Todd McCracken said in a prepared statement.

The National Small Business Association has lobbied lawmakers to consider key small-business issues, including expanding small-business lending and requiring that a certain amount of any infrastructure-stimulus funds be awarded as contracts to small business.

Copyright © 2009 The Orlando Sentinel, Fla., Sara K. Clarke. Distributed by McClatchy-Tribune Information Services.

Excellent Words of Advice

Florida Business Woman Helen Vella tells us what she saw as the biggest challenge for people in 2009 and what her advice would be.

“The most common challenge I think for 2009 is the media and conversations of ‘how things are tough for everyone and nobody knows what they are going to do.’ To be able to be aware of what is going on around us is essential, but not becoming part of it when it is negative is essential for your well being. This is your health, as well as your family and your business. Surround yourself with positive people who accept a challenge, or a set back, and can still move forward with focus and a goal in mind. Be informed but not absorbed.”

Helen Vella is a board member of the Child Rescue Networking and NAWBO – National Association of Women Business Owners. She was presented with the Jefferson Award for Volunteer Services as well as winning the State of Florida award for Public Speaking by Business & Professional Women.

Contact Helen at: 407-232-4439
http://www.VellaAndAssociates.com

I came across this very interesting article and thought I would share it with you. The sooner we level the REO playing field the better.

02-03-2009 - Congress to break up REO "Listing Agent" Monopoly

From national correspondent: Ms.Catarina Huntington

That's the headline Realtors can only hope for at this point in time. A more proportioned assignment of REO (bank foreclosures) listings would dramatically enhance the financial landscape for the struggling Realtor industry. However, as of January 2009, less than 1/3 of 1% of Realtors continue to maintain a stranglehold on REO markets, while the rest of the industry sinks in despair. For now, the "80-20 Rule" (20% of Realtors accounting for 80% of business) is a distant memory. "It seems like the new rule should be changed to the "80-1 Rule", where less than 1% of the agents are closing 80% of the deals" says Julie Tveit a real estate Broker for LaRue Realty in Minnesota.

An investigation into the facts surrounding the REO listing market is interesting....

2 million foreclosures up for grabs

Nationwide the "private club" (as they're called) of REO Agents currently monopolizes about 1.7 million active REO listings. In 2009, 2.0 million more properties will foreclose and according to a recent report by "Credit Suisse" the US market will be averaging 2 + million foreclosures over each of the next 4 years.

Estimates are that 150,000 Realtors nationwide, provided the pertinent education, would be very qualified listing agents of REO properties. There are no specific prerequisites to become an REO Agent. Qualified Realtors simply need to possess a willingness to enter the REO arena and be thoroughly educated on the unique aspects of listing bank owned foreclosures.

Hence, there are 150,000 active full time Realtors in the United States with 2 million foreclosure listings "up for grabs". If divided equally each Realtor would close 13 REO listings per year for the next 4 years.

REO Agents Dominate Market

Instead roughly 5800 Realtors Nationwide sold 1.6 million REO homes in 2008. That translates into an average of 22 closed listings per REO Agent per month. That certainly doesn't sound like a "spread the wealth" philosophy does it? My research indicates that the REO industry's current model provides for a single beneficiary: REO Listing Agents, and unfortunately this model comes at the expense of the lenders themselves, frustrated buyers and the tens of thousands of agents left out to dry.

The vast majority of REO Agents are overwhelmed with inventory and under staffed. Realtors "in the field" showing REO properties tell me that they understand this all to well. "I am to the point now, in working with buyers, that I have to pre-screen listing agents that have REO listings. If I know that the listing agent is going to be difficult to work with, on any level, then I pass that information along to my buyers. There are too many properties on the market to waste time with difficult transactions" say Ms. Tviet.

The systemic problem within the REO Agent "underground" appears to have a multitude of negative consequences which result in longer market times and lower sale prices, say numerous industry sources. Ms. Tviet, "It's just common sense, if your marketing is poor, your correspondence with other Realtors is marginal and you have a reputation as difficult to work with, it inevitably effects the lenders bottom line".

Private enterprise is fixed on changing the dynamic

In a brief telephone interview I conducted with Ms. Simona Miu a spokeswoman for the ForeclosureU.com a private educational institute established in 2005, Miu stated:

"ForeclosureU is committed to changing all of that in 2009. Stating that ForeclosureU.com is going "at the establishment head on". Miu says that ForeclosureU is launching a national advertising campaign in various targeted media outlets promoting the importance of their "Certified Foreclosure Specialist Designation and Training for Realtors".…."In 2009 our sole focus will be dedicated to educating and arming 25000 Realtors to earn their fair share and rights to the REO pie……Graduates of the "CFS" Training will receive everything required to meet their career goals and seize these emerging markets".

Miu went on to provide some of the ways ForeclosureU intends on accomplishing that challenging feat: "CFS" graduates are provided unprecedented (a) training on listing REO property but it doesn't stop there (b) "CFS" graduates are entered into the National Database of "CFS" agents (c) which will be facilitated by an aggressive print/electronic and Internet marketing campaign (promoting its "CFS" agents) targeting the entire default (REO) industry (d) In addition a proprietary list of "REO asset managers" and their direct contact information will be made available to all "CFS" graduates."

Miu stated that ForeclosureU is filling the gapping holes left by local, state and national educational platforms that have failed Realtors miserably in providing current educational requirements.

Conclusion

If ForeclosureU and companies like them truly step up and provide Realtors the tools they need there is little doubt that, at least in this columnists opinion, Realtors can surely change the course of their careers and maybe even the course of the foreclosure debacle as a whole.

On a personal note, I am pulling for ForeclosureU and any innovative new business that has the capacity to help this beleaguered economy. Small business and product/service innovation is the only viable macro solution to this countries economic downward spiral. Realtors are a part of that solution. Getting our political leaders to understand this is a whole other conundrum.

Statistical data and additional content provided thanks to: Real Estate Trac, City Data Co, U.S. Association of Real Estate Agents, Foreclosure University, LaRue Realty, Zillow Blog

I just received this email notice regarding a foreclosure expo. It's now all about marketing, marketing, marketing!

2009 Foreclosure Expo
2/7 - 2/8 ....THIS Sat & Sun! ...10:00 AM to 6:00 PM
International Plaza Resort & Spa
10100 International Drive, Orlando, FL
http://www.intlplazaresort.com
This event is where first time home buyers, people who want to sell their home, or people looking for investment opportunities can have total access to many of today’s valuable resources.
It's no secret that the foreclosure market is at an all time high. The opportunities for investing in real estate foreclosures are tremendous and it's important to have the right knowledge and connections.
Win a Foreclosure Property!
Free Giveaway - Live Drawing
sponsored by www.bankerreos.com
The drawing will take place Sunday February 8th at 4:00pm in the presentation area of the exhibit hall. This is a one of a kind, first time opportunity in the state of Florida to win a free and clear Foreclosure Property. You must be in attendance and 18 yrs of age to be eligible to win. Guarantee admission and buy tickets online. Space is limited.

Who Should Attend...
If you area a wholesaler, Bank REO dept, Realtor with Foreclosure listings, Rehabber or investor, this is the expo for you. The Foreclosures Expo is designed to attract the serious and curious. This the only event of its’ kind in Central Florida.
> Exhibitors include...
Orlando Sentinel, Aston Martin, Orlando Magic Basketball, Southeast Professional Title, Banker REOs, Money Corp, Wachovia, First Alliance Capital, Coldwell Banker, Premier Property Solutions, LLC, Equitable title of Florida, Financial Management Advisors, Home inspections for You, Shortsale Club USA, Buying Florida, Stirling Sotheby's Mary Abrams, Greenspoon Marder PA & More!
INFO: http://www.foreclosuresexpo.com

It seems we have a little burst of buyer energy here in Florida. I just wrote an offer after working with some clients for almost 3 months with 50 houses shown. Apparently, they thought this was the right time to jump in. My colleague at Pytha Realty said he had 3 offers on the table in the last week and all the properly priced REO's have bids on them right now. Let's hope it continues but I know the roller coaster ride isn't over by a long shot. As always, hard work and perseverance pay off eventually.