Month: April 2010

by Tim Herriage Tim Herriage No Comments

Email, phone call, or text?

In this day and age it is amazing all of the ways you can communicate with friends, family, colleagues, vendors, and clients.  Which method is best for which situation?  Nowadays, I negotiate contracts via text with some REALTORS, and others don't even receive texts.  I actually had a lender last week tell me to “Facebook” him!

It is amazing how many people will not pick up the phone and call someone anymore.  I will tell you this, it is very important to consider etiquette when choosing which medium to use.  One thing to consider is how did that person contact you?  I try to never return a phone call with an email.  I think it is rude.  If I do, I always make sure I apologize, and explain why I was not able to call.  It is amazing how many people will not answer a phone call, and then send you an email ten minutes later.

Try to think about the person you are communicating with, and what their perception will be of the way you do, or do not communicate.  Last week, when a REALTOR was dodging my calls, and sending me emails, I called her out about it.  The crazy thing is, I left her a voicemail that I didn't want her to return phone calls via email, and then she sent me an email telling me why she wasn't answering.  She said she was just really busy. 

The point is, that conveys a silent message.  I tells the person, “I don't have time for you”.  I ended up not agreeing to her buyers demands, and it was crazy, the buyer called me, and we worked it out between us (ON THE PHONE).  I then called his REALTOR to tell her the terms (had to leave a message), and she EMAILED me to let me know she would talk to her clients.  It was absolutely comical!

The way I see it, it is now more important than ever to choose carefully how you communicate with someone, but also to pay attention to how others are communicating with you.  Just because you prefer to email, text, or Facebook, someone else might put more importance on a phone call.  Jennifer and I were actually talking the other day that it seems as if a phone call is now considered a very personal approach.  I had someone tell me the other day, “Thank you for calling me, I really appreciate you taking the time!”

One more thing, if you really want to blow someone away, write them a handwritten note, and MAIL it to them.  They'll just fall over!

 

See you online!

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

by Tim Herriage Tim Herriage No Comments

Keys to Passive Investing Success – Part 3 Know Who’s Running the Show (Continued)

As children we are always asking “why” but as adults we often forget to question our own assumptions as well as the things we are told by others.  When it comes to investing, failure to ask good questions can cost us a lot of money.  Due diligence is both a skill and a process.  It is a skill because it requires the ability to ask critical questions.  It is a process because of the effort and time required to answer those questions.  Read More »

by Tim Herriage Tim Herriage No Comments

Please help renew the tax credit…

If you are active in real estate, or are monitoring the economy, you know things have been looking pretty good for the last six to nine months.  In my opinion, it is because of the home buyer tax credit.  This is truly the only “stimulus” that I have seen stimulate anything other than wasteful spending.  I believe that real estate sales touch over 75% of Americans. 

Imagine this, I sold a house on Thursday, that I bought and fixed up in 45 days.  How many people benefited from me being able to buy, fix, and sell the house?  Lets see:

  1. The Seller (2)
  2. The Wholesaler and his company (9)
  3. The title company that closed the purchase (4)
  4. The loan team that originated my loan (3)
  5. My insurance agent (3)
  6. The foundation company (7)
  7. Central Heat and air (8)
  8. My crew (7)
  9. Home Depot (5)
  10. Creative Accents (3)
  11. The wood floor crew (4)
  12. Landscaping crew (3)
  13. Dumpster company (3)
  14. Plumbers (5)
  15. Electricians (2)
  16. My Realtor (1)
  17. The Buyers Realtor (1)
  18. The title company for the sale (5)
  19. Insurance for the buyer (2)
  20. The lender for the buyer (4)
  21. The inspector for the buyer (1)
  22. Service contract (1)

That adds up to 83 people that this property directly effected.  No imagine the people that rely on those people to pay their bills.  Picture the suppliers to these companies, and the vendors, and the sales people.  Picture the furniture store the buyers will go to.  That is just ONE house.  I predict sales will drop by as much as 30% if the tax credit is not extended.

The only reason the economy and stock market have began to improve is because of the home buyer tax credit.  It is due to expire in three weeks.  Write your representative and senators today, and tell them to keep the economy moving in the right direction.  We NEED the homebuyer tax credit to continue economic recovery.

Now, THAT is the way I see it!

Tim Herriage

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

by Tim Herriage Tim Herriage No Comments

Supply and Demand

This month is a crucial point in the 2010 real estate market.  Easter typically signals the beginning of the six strongest months in real estate sales.  Showings should increase, and sales contracts should begin to trickle in. So, here is the question you should ask yourself, “Will the recent surge/recovery continue through the summer?”

Real estate is driven by the basic economic principles of supply and demand.  Supply is something we have plenty of, and there are no signs of a shortage in the next 36 months.  Demand is the piece of the puzzle most people don't look at.  Whether you are a wholesale, retail, or long term hold investor, demand is the crippling factor most investors ignore. 

Demand is driven by liquidity.  Liquidity is measured by the available cash or credit in each specific market.  Demand is supplemented by incentives such as low rates and the tax credit.  It appears that the home buyer tax credit will be allowed to fade into the night, which will reduce the supplemental benefits one would have for purchasing homes this year.  If you analyze what is happening in the bond and t-bill market, it appears that rates may begin to climb.

I will talk more about this topic later in the month, but the bottom line is to keep a watchful eye on the demand for which ever product you are pursuing.  If rates spike, and the tax credit dies, this summer may not be as rewarding as it appears it will be!

Like I always say, I don't know everything, but that's just the way I see it!

See you online;

Tim

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

by Tim Herriage Tim Herriage No Comments

Keys to Passive Investing Success – Part 2 Know Who’s Running the Show

Few things influence the success of an investment more than the character, knowledge and experience of those who develop and manage it. A good rule of thumb is never put money in a deal whose principals have less than 5 years of relevant experience in the business. Be sure they have actually done it before, preferably more than once, and have done it successfully. Past performance is never a guarantee of future success, but who would you rather trust, someone who put together 10 successful projects or someone with no experience or who can’t demonstrate consistent results? Everyone has to start somewhere but they don’t have to start with your money.  Ask for performance history and references.  How well and how long you know a person is important but if you have not done business with them before or know others who have, you should treat them as a new relationship.  A person’s social demeanor is not always an indicator of their business behavior. Read More »