Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Monday, February 6, 2012
Building a Strong Business Relationship
When it comes to business and sales, building a strong relationship is critical. The stronger your relationship is with your customer, the more likely they will be to refer you business.
Every day, make an attempt to build on the relationships you have with your customer. Don’t just say hi as they walk in and goodbye as they leave.
The last thing you want to do is make your customer feel like a statistic.
Let them know that their business with you is appreciated. Talk to them, strike up a non-business conversation with them. It could involve just about anything, such as the weather, sports, a movie, pets, etc.
Non-business conversation puts your customer at ease and gets them talking. The more they talk to you, the more they will open up to you, opening the door for more sales opportunities.
Or, you can keep it simple. For starters, get to know you customers by name, than address them by name. Say things such as, “how’s it going today?” Or “how was your weekend?” Or “is there anything I can help you with today?” Make your presence known and felt.
Your customer wants to be appreciated, so take a few minutes of your time to show them that you care about them as a customer.
Another way to strengthen your relationship with your customer is to keep a Rolodex handy with a list of all of your customers birthday’s, anniversaries, and special events. Keep your eyes and ears open for when customers talk about up coming events in their lives. Such as children’s birthdays and graduations.
When the appropriate date approaches, send your customer a card, wether it is a holiday card, a birthday card, a graduation card, or a congratulatory card. Just send it.
Your customers will appreciate the fact that you remembered them on their special day. This will only strengthen the relationship you already have with them.
There are many reasons to build a strong relationship with your customer, but two of the reasons remain to be key.
One main reason is that customers value and appreciate good customer service. They want the piece of mind of knowing that if something ever happened with their product or service, that they would have you to turn to as their go to person.
This is extremely important because your customer will have this in mind when your competition moves in to take them away.
And believe me, your competition will try to take them away. As long as you provide excellent customer service, your customer will stick with you.
There is no substitute for excellent customer service.
Customer service is the most important thing to a customer, even more important than fees’.
The second reason building relationships are so important is because of the referral process.
A customer that is treated with respect and provided excellent customer service will most assuredly refer their family and friends to you. Why wouldn’t they?
Your most important asset is your customer, so build and strengthen the foundations you have with them. Buy building strong relationships, you will be building your sales. Good luck.
This article may be reproduced by anyone at any time, as long as the authors name and reference links are kept in tact and active.
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Tuesday, November 2, 2010
Buying at the top – Wachovia’s mistake
The real estate market greatly exploded over the last five years with the biggest shift happening in the past three years. All good things must come to an end, and unfortunately this real estate boom is over. People who have bought in the past six months have been buying at the top, and even large companies have made this mistake. One company in particular is Wachovia Bank. Its recent purchase of Golden West Financial for $26 billion is a prime example of a ‘buying past the peak’ investment.
Two of the primary drivers of this real estate market mania have been people’s belief that they must own real estate coupled with a second factor of low interest rate mortgages.
The first driver is people’s fervent belief that they must buy real estate, but this ‘herd mentality’ is beginning to change. Speculators buy homes as investments and these investors have been a large source of the demand for real estate in the past few years. Now, not only have speculators stopped buying but they are also selling the properties they own. As a result, inventory of homes for sale are at astronomical levels.
The second driver of the real estate market has been low interest rate mortgages. Interest rates bottomed out in June of 2003 and have been rising ever since. As a result interest rates are substantially higher than they were only 12 months ago and they only have one way to go – up. Higher interest rates are needed to help slow down inflation. Inflation has recently caused consumers to really begin feeling a pinch in their wallets.
In order to cope with higher interest rates and high real estate prices, banks have thrust adjustable rate mortgages onto the American public. Since March 2004, there has been a 59% increase in one-year adjustable rate mortgages. These mortgages start out with a low interest rate, but quickly rise after the one-year introductory period is over. Moody’s has reported that an astounding $2 trillion of adjustable mortgages will reset between 2006 and 2007 and this will really cause foreclosures to rise like never before.
Rise they have as mortgage foreclosures nationwide increased 38% as reported by RealtyTrac Inc. Mortgage defaults will only worsen with higher interest rates and more adjustable mortgage rate resets. What bank is infamous for specializing in adjustable mortgage loans? The answer is Golden West Financial bank.
Adjustable mortgages will be the primary cause of the coming mortgage meltdown and ground zero for this will be overpriced areas such as California, Florida, and New York. Golden West Financial concentrated their adjustable mortgages in California, one of the most overpriced real estate areas in the country. Wachovia was so absorbed by the real estate bubble it paid the highest price ever per share for Golden West.
So what happens when many of Golden West’s clients foreclose on their properties because they cannot afford a 50% jump in monthly mortgage payments? Wachovia will feel the pain as they are forced to sell these mortgages to investors for pennies on the dollar. Do not make the same mistake; learn all about the markets and economy. It is important to know there is still time to prepare yourself for the real estate bubble bursting and the coming recession. Go to www.MyRealEstateBubble.com for more information.
Two of the primary drivers of this real estate market mania have been people’s belief that they must own real estate coupled with a second factor of low interest rate mortgages.
The first driver is people’s fervent belief that they must buy real estate, but this ‘herd mentality’ is beginning to change. Speculators buy homes as investments and these investors have been a large source of the demand for real estate in the past few years. Now, not only have speculators stopped buying but they are also selling the properties they own. As a result, inventory of homes for sale are at astronomical levels.
The second driver of the real estate market has been low interest rate mortgages. Interest rates bottomed out in June of 2003 and have been rising ever since. As a result interest rates are substantially higher than they were only 12 months ago and they only have one way to go – up. Higher interest rates are needed to help slow down inflation. Inflation has recently caused consumers to really begin feeling a pinch in their wallets.
In order to cope with higher interest rates and high real estate prices, banks have thrust adjustable rate mortgages onto the American public. Since March 2004, there has been a 59% increase in one-year adjustable rate mortgages. These mortgages start out with a low interest rate, but quickly rise after the one-year introductory period is over. Moody’s has reported that an astounding $2 trillion of adjustable mortgages will reset between 2006 and 2007 and this will really cause foreclosures to rise like never before.
Rise they have as mortgage foreclosures nationwide increased 38% as reported by RealtyTrac Inc. Mortgage defaults will only worsen with higher interest rates and more adjustable mortgage rate resets. What bank is infamous for specializing in adjustable mortgage loans? The answer is Golden West Financial bank.
Adjustable mortgages will be the primary cause of the coming mortgage meltdown and ground zero for this will be overpriced areas such as California, Florida, and New York. Golden West Financial concentrated their adjustable mortgages in California, one of the most overpriced real estate areas in the country. Wachovia was so absorbed by the real estate bubble it paid the highest price ever per share for Golden West.
So what happens when many of Golden West’s clients foreclose on their properties because they cannot afford a 50% jump in monthly mortgage payments? Wachovia will feel the pain as they are forced to sell these mortgages to investors for pennies on the dollar. Do not make the same mistake; learn all about the markets and economy. It is important to know there is still time to prepare yourself for the real estate bubble bursting and the coming recession. Go to www.MyRealEstateBubble.com for more information.
Friday, June 18, 2010
Evaluating Your Customer
It is one thing to make a sales presentation, but it is another thing to make a sales presentation without first evaluating your customer. For all you know, you could be selling your customer something that they already have, or something they don’t want, don’t need, or can’t afford.
This is why it is so very important to take your customer in, sit them down, make them feel comfortable, and get to know them and what their needs are. Once you have done this, you can then sell them a product based on what their needs are and not what you think they are.
On a personal note . . .
I learned the importance of evaluating your customer the hard way. A few years ago, I was a branch manager working in a bank branch. One particular customer of the bank approached me in my office about opening a savings account for her daughter.
Once I explained to her the process of opening a savings account, I proceeded to tell her all about a current promotion we were having on our home equity loans. She sat there and listened very politely and patiently as I very proudly went down the list of all the benefits, features, and tax breaks that come with a home equity loan.
Once I had finished my rehearsed presentation, she said to me;
That all sounds very nice, and it is something that I will consider in the near to distant future. She than went on to tell me that she and her husband rented the house they lived in.
So there you have it, I tried to sell a home equity loan to someone without a house.
Needless to say, my face turned a deeper shade of scarlet, and I felt like an idiot.
But hey, I learned from my mistake. Had I asked some simple probing questions before I went straight for the sale, I would have saved myself a lot of embarrassment.
You will be amazed at what you can find out from people just by asking them a few simple questions about themselves. Remember, people love to talk about themselves. Their jobs, their pets, their kids, just about everything.
I once had a friend who owned a shoe store, and his inventory was made up mostly of sneakers. One day a man walked into his store to buy a pair of sneakers. As my friend assisted him with his decision, he struck up a friendly conversation with him. As it turned out, this customer ran a basketball camp during the summer and he loved to talk about it. A few minutes into the conversation, my friend and his customer had come to an agreement. All of the boys and girls that attended the customers basketball camp would receive a 10% discount on their sneakers if they purchased them at my friend’s store.
So, as you can see, my friend increased his sales that summer simply by striking up a conversation with his random customer and asking a few questions.
Imagine going to your doctors office with an ailment and having him prescribe you a medication without asking what your symptoms were. Would you take the medication?
The same principal applies.
It really isn’t rocket science, it’s just friendly conversation, get to know your customer and watch one sale turn into many.
Why service only one of your customers needs when you can service them all.
This is why it is so very important to take your customer in, sit them down, make them feel comfortable, and get to know them and what their needs are. Once you have done this, you can then sell them a product based on what their needs are and not what you think they are.
On a personal note . . .
I learned the importance of evaluating your customer the hard way. A few years ago, I was a branch manager working in a bank branch. One particular customer of the bank approached me in my office about opening a savings account for her daughter.
Once I explained to her the process of opening a savings account, I proceeded to tell her all about a current promotion we were having on our home equity loans. She sat there and listened very politely and patiently as I very proudly went down the list of all the benefits, features, and tax breaks that come with a home equity loan.
Once I had finished my rehearsed presentation, she said to me;
That all sounds very nice, and it is something that I will consider in the near to distant future. She than went on to tell me that she and her husband rented the house they lived in.
So there you have it, I tried to sell a home equity loan to someone without a house.
Needless to say, my face turned a deeper shade of scarlet, and I felt like an idiot.
But hey, I learned from my mistake. Had I asked some simple probing questions before I went straight for the sale, I would have saved myself a lot of embarrassment.
You will be amazed at what you can find out from people just by asking them a few simple questions about themselves. Remember, people love to talk about themselves. Their jobs, their pets, their kids, just about everything.
I once had a friend who owned a shoe store, and his inventory was made up mostly of sneakers. One day a man walked into his store to buy a pair of sneakers. As my friend assisted him with his decision, he struck up a friendly conversation with him. As it turned out, this customer ran a basketball camp during the summer and he loved to talk about it. A few minutes into the conversation, my friend and his customer had come to an agreement. All of the boys and girls that attended the customers basketball camp would receive a 10% discount on their sneakers if they purchased them at my friend’s store.
So, as you can see, my friend increased his sales that summer simply by striking up a conversation with his random customer and asking a few questions.
Imagine going to your doctors office with an ailment and having him prescribe you a medication without asking what your symptoms were. Would you take the medication?
The same principal applies.
It really isn’t rocket science, it’s just friendly conversation, get to know your customer and watch one sale turn into many.
Why service only one of your customers needs when you can service them all.
Friday, April 2, 2010
10 Common Homeowner Complaints
Home ownership is most people's dream come true. Don't let it become a nightmare.
1. Real Estate Fraud
“Someone forged my signature on a Grant Deed. The document says my property now belongs to someone I don’t even know.”
Contact your state's real estate commission.
2. Unlicensed Contractors
“I hired a guy who said he was licensed to make repairs to my kitchen. He started the work but never finished. I found out he isn’t licensed and that he recorded a mechanic’s lien against my house.”
Never hire an unlicensed contractor.
3. Foreclosure Consultants
“When I got behind on my house payments, I started getting mail from people saying they could save my home. I signed a contract with a guy who promised to make up the back payments and help me get a new loan. He didn’t do any of that. Instead, he sold my house to somebody else and now I’m being evicted.”
If you’re behind on payments, call your mortgage company and work out a payment plan.
4. High Interest Loans
“I thought I was getting a good deal on a refinance. Turns out, the interest rate is way too high and they charged me all kinds of junk fees.”
Shop around for the best rates and fees before getting a new loan and make sure your read the fine print.
5. Adjustable and Fixed-Rate Loans
“The loan representative said I was getting a fixed-rate, 30-year loan. Six months later, my interest rate jumped more than 3%.”
Review your loan documents before you sign. Interest rates must be disclosed by the lender.
6. Account and Billing Errors
“My mortgage company did not credit my account for the mortgage payments I’ve made.”
Send a letter to your mortgage company requesting a payment history. Be sure to include your account number in the letter.
7. Illegal Rooms
“I just moved into the house I bought and the city tells me that some of the rooms were added without building permits.”
You may be required to make changes. Be sure to check for building permits before you buy a home.
8. Repairs and Escrow
“Before I bought my house, the seller promised to make repairs. My agent said it was OK to sign and close escrow, even though the repairs were not done. It’s been 3 months and the seller still hasn’t made any repairs.”
Make sure repairs are completed before you close escrow.
9. Property Taxes Not Paid
“My mortgage company was supposed to pay my property taxes but didn’t. Now I owe past taxes and penalties.”
Call your mortgage company for an explanation. If they don’t take care of the problem, contact your state real estate commission.
10. Vacant Land Purchase
“I bought some vacant land in the desert to build a house on. The seller said there was water, sewers, electricity and phone service. Turns out, none of those are available.”
Check with the local Building and Safety Department before you buy vacant land.
Take your time and do your homework. Property purchases are usually the biggest investment you can make. Take time to read all of the documentation and if your don't understand something, ask questions. If necessary, hire a real estate attorney to protect your interests.
1. Real Estate Fraud
“Someone forged my signature on a Grant Deed. The document says my property now belongs to someone I don’t even know.”
Contact your state's real estate commission.
2. Unlicensed Contractors
“I hired a guy who said he was licensed to make repairs to my kitchen. He started the work but never finished. I found out he isn’t licensed and that he recorded a mechanic’s lien against my house.”
Never hire an unlicensed contractor.
3. Foreclosure Consultants
“When I got behind on my house payments, I started getting mail from people saying they could save my home. I signed a contract with a guy who promised to make up the back payments and help me get a new loan. He didn’t do any of that. Instead, he sold my house to somebody else and now I’m being evicted.”
If you’re behind on payments, call your mortgage company and work out a payment plan.
4. High Interest Loans
“I thought I was getting a good deal on a refinance. Turns out, the interest rate is way too high and they charged me all kinds of junk fees.”
Shop around for the best rates and fees before getting a new loan and make sure your read the fine print.
5. Adjustable and Fixed-Rate Loans
“The loan representative said I was getting a fixed-rate, 30-year loan. Six months later, my interest rate jumped more than 3%.”
Review your loan documents before you sign. Interest rates must be disclosed by the lender.
6. Account and Billing Errors
“My mortgage company did not credit my account for the mortgage payments I’ve made.”
Send a letter to your mortgage company requesting a payment history. Be sure to include your account number in the letter.
7. Illegal Rooms
“I just moved into the house I bought and the city tells me that some of the rooms were added without building permits.”
You may be required to make changes. Be sure to check for building permits before you buy a home.
8. Repairs and Escrow
“Before I bought my house, the seller promised to make repairs. My agent said it was OK to sign and close escrow, even though the repairs were not done. It’s been 3 months and the seller still hasn’t made any repairs.”
Make sure repairs are completed before you close escrow.
9. Property Taxes Not Paid
“My mortgage company was supposed to pay my property taxes but didn’t. Now I owe past taxes and penalties.”
Call your mortgage company for an explanation. If they don’t take care of the problem, contact your state real estate commission.
10. Vacant Land Purchase
“I bought some vacant land in the desert to build a house on. The seller said there was water, sewers, electricity and phone service. Turns out, none of those are available.”
Check with the local Building and Safety Department before you buy vacant land.
Take your time and do your homework. Property purchases are usually the biggest investment you can make. Take time to read all of the documentation and if your don't understand something, ask questions. If necessary, hire a real estate attorney to protect your interests.
Friday, March 5, 2010
6 Ways To Fund Your New Business
I’m often asked: what is the best way to finance a new business venture. This question is usually followed by "So, do you ever invest in new business ventures?"
The answers, respectively, are: 1. there is no "best" way to fund a new business; and 2. I do invest in new business ventures, but darn it I can’t today because I left my checkbook in my other suit.
The truth is there are a variety of ways to finance a new business and which way is best for you depends totally on your product, your market, your financial requirements, your burn rate, and most importantly, your personal and financial situation.
So with that in mind, here are a few of the most common ways to finance a new business without hitting old Tim up for a loan. Keep in mind that all methods have pros and cons and some (or most) may not work for your specific situation. No matter what financing method you choose thoroughly investigate the ups and downs and don’t jump in with both feet until you’re sure you’ll land on solid ground.
Savings and Investments
The first source you should consider tapping is your own savings and investments. I’m a huge fan of self-financing when it comes to business because it doesn’t make you responsible to others should the business fail. The bad thing is that it if things do go under, it will be your money that goes down with the ship. If you’re not willing to risk your own capital you certainly shouldn’t be willing to risk anyone else’s.
Friends and Family
After tapping their own savings and investments, many entrepreneurs turn to friends and family for help. This works well for some, but here’s the creed I live by: NEVER borrow money from anyone you have to eat Thanksgiving dinner with. Nothing causes tension in a family like lending money that is never paid back. And notice I say "lending money" rather than investing money. Venture capitalists invest money. Your relatives lend you money. They will expect it back someday even if they say they won’t. Remember, when a loved one invests in your business they are emotionally investing in you. It would be tough to tell mom and dad that their favorite son lost their life savings because his business went down the drain.
Credit Cards
I financed my first business on credit cards, which was an incredibly stupid thing to do given the fact that my business could have failed and left me with thousands of dollars in credit card debt that would have taken until the year 2099 to pay off. It worked out in the end for me, but if you decide to finance your business on plastic keep in mind that you will be paying extremely high interest rates on the money you’ve borrowed and unless you hit it big you will be paying for that money for many years to come.
Mortgage The Farm
Bank loans are next to impossible to get if you don’t have collateral and a track record of business success, which is why many entrepreneurs use the equity in their homes to finance their business after being turned down for a bank loan. While this makes more sense than building a business on a deck of credit cards, the financial risks are no less abundant. You must pay this money back whether your business succeeds or not, but it is a good source of low interest money to get you started and the interest may be tax deductible (check with your accountant to make sure).
Angel Investors
An angel investor is typically a wealthy individual who invests in start up ventures for a share of the ownership. Angel investors are usually the first formal investors in a business and provide the seed money to get the business up and running. Some angel investors will write you a check and leave you alone to run your business while others consider their investment a license to "help you" manage and make decisions. If you do accept angel money make sure the terms are clearly defined on both sides. Angel money always comes with strings. Make sure you know whether those strings come in the form of a bow or a noose before you accept an angel’s check.
Venture Capitalists
Venture capitalists are to angel investors as pit bulls are to Chihuahuas. That’s not to say all VC are big, bad dogs, but they do have powerful jaws that can chew up your business and spit it out if things don’t go their way. VC money doesn’t come with strings, it comes with chains and locks and lots of legal documents. VC always have the upper hand in any deal they invest in. That’s just how it works and that’s the price you pay to get access to VC money.
If your business gets to the level that VC money becomes a viable option, don’t jump at the first bone a VC dangles before your eyes. If one VC likes your idea, others will, too. Present to multiple VC and carefully consider each offer before you accept the check.
Just remember, no matter how you finance your business, use the money wisely. Don’t buy $1,500 plasma monitors and $1,000 Hermann Miller chairs.
Have a very clear plan of how the money will be used and how it will be paid back.
And remember this, the more you can shoestring the business, but more of the business you will own in the end.
The answers, respectively, are: 1. there is no "best" way to fund a new business; and 2. I do invest in new business ventures, but darn it I can’t today because I left my checkbook in my other suit.
The truth is there are a variety of ways to finance a new business and which way is best for you depends totally on your product, your market, your financial requirements, your burn rate, and most importantly, your personal and financial situation.
So with that in mind, here are a few of the most common ways to finance a new business without hitting old Tim up for a loan. Keep in mind that all methods have pros and cons and some (or most) may not work for your specific situation. No matter what financing method you choose thoroughly investigate the ups and downs and don’t jump in with both feet until you’re sure you’ll land on solid ground.
Savings and Investments
The first source you should consider tapping is your own savings and investments. I’m a huge fan of self-financing when it comes to business because it doesn’t make you responsible to others should the business fail. The bad thing is that it if things do go under, it will be your money that goes down with the ship. If you’re not willing to risk your own capital you certainly shouldn’t be willing to risk anyone else’s.
Friends and Family
After tapping their own savings and investments, many entrepreneurs turn to friends and family for help. This works well for some, but here’s the creed I live by: NEVER borrow money from anyone you have to eat Thanksgiving dinner with. Nothing causes tension in a family like lending money that is never paid back. And notice I say "lending money" rather than investing money. Venture capitalists invest money. Your relatives lend you money. They will expect it back someday even if they say they won’t. Remember, when a loved one invests in your business they are emotionally investing in you. It would be tough to tell mom and dad that their favorite son lost their life savings because his business went down the drain.
Credit Cards
I financed my first business on credit cards, which was an incredibly stupid thing to do given the fact that my business could have failed and left me with thousands of dollars in credit card debt that would have taken until the year 2099 to pay off. It worked out in the end for me, but if you decide to finance your business on plastic keep in mind that you will be paying extremely high interest rates on the money you’ve borrowed and unless you hit it big you will be paying for that money for many years to come.
Mortgage The Farm
Bank loans are next to impossible to get if you don’t have collateral and a track record of business success, which is why many entrepreneurs use the equity in their homes to finance their business after being turned down for a bank loan. While this makes more sense than building a business on a deck of credit cards, the financial risks are no less abundant. You must pay this money back whether your business succeeds or not, but it is a good source of low interest money to get you started and the interest may be tax deductible (check with your accountant to make sure).
Angel Investors
An angel investor is typically a wealthy individual who invests in start up ventures for a share of the ownership. Angel investors are usually the first formal investors in a business and provide the seed money to get the business up and running. Some angel investors will write you a check and leave you alone to run your business while others consider their investment a license to "help you" manage and make decisions. If you do accept angel money make sure the terms are clearly defined on both sides. Angel money always comes with strings. Make sure you know whether those strings come in the form of a bow or a noose before you accept an angel’s check.
Venture Capitalists
Venture capitalists are to angel investors as pit bulls are to Chihuahuas. That’s not to say all VC are big, bad dogs, but they do have powerful jaws that can chew up your business and spit it out if things don’t go their way. VC money doesn’t come with strings, it comes with chains and locks and lots of legal documents. VC always have the upper hand in any deal they invest in. That’s just how it works and that’s the price you pay to get access to VC money.
If your business gets to the level that VC money becomes a viable option, don’t jump at the first bone a VC dangles before your eyes. If one VC likes your idea, others will, too. Present to multiple VC and carefully consider each offer before you accept the check.
Just remember, no matter how you finance your business, use the money wisely. Don’t buy $1,500 plasma monitors and $1,000 Hermann Miller chairs.
Have a very clear plan of how the money will be used and how it will be paid back.
And remember this, the more you can shoestring the business, but more of the business you will own in the end.
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