This may not be a popular post, but think about what it says. Those of you who are waiting wistfully for Michigan to return to the glory days of "The Big 3" better not be holding your breath. The glory days of "American" auto companies dominating the auto buying market in the United States is clearly over. Don't get mad, it's a fact.
The auto industry is a global thing now with many competitors bringing their products to our doors here in our country. If you doubt the global reach of the auto industry, do a little research on where GM and Ford are investing their money. You don't have to look very hard to figure out that they're investing in a lot of places other than the United States - and well they should be. There isn't much news about any of the "American" companies building new plants in the U.S. - that's because they aren't.
So, the auto industry is writing a new chapter in its history and that means that Michigan and Detroit - the Motor City - are out of luck and used up, right? If you think so, you're just as wrong as the people waiting for the auto industry to swoop in and save Michigan. Sorry.
Is this all bad news? Of course not, unless you listen to the news and read the statistics without thinking. Michigan is poised to become a leader in alternative energy creation and the manufacturing of plants and related components. The corridor between Ann Arbor and Detroit has become a hotbed of technology developing firms. Whether you like casinos or not, it's hard to argue that they are driving Michigan ahead into a "Services" based economy from a Manufacturing based economy. The health care industry is growing as fast as anything in recent memory and with The Detroit Medical Center, the William Beaumont facilities, Henry Ford Medical System, St. John Health System, U of M Hospital and the Kresge Eye Institute, Karmanos Cancer Center and many more like Stryker Corp., you have to believe that Michigan is as well suited to capitalize on this boom as any state.
So, is the glass half full? Or is it half empty like everyone thinks who believes that Michigan is down for the count. I think it's half full and so should you.
Until next time.
Friday, May 2, 2008
Saturday, April 5, 2008
Some of my Friends are Making It Happen - Part 1
Hello again! And again it's been a while since I posted. I really have to get better about that just in case someone is actually reading this.
Today I want to talk about one of my associates from the REIA of Macomb (REIA stands for Real Estate Investors Association an dyou can visit their site here http://www.reiaofmacomb.com/). I won't talk about them by name, but if they see this, they'll know who they are.
The person and project I want to tell you about today are really incredible. You might know her from a post a while back entitled "The Power of Teamwork". Her name is Tina. Tina just finished a big rehab project. No, not what you are thinking - Britney Spears is a different kind of big rehab project. For those of you not familiar with the term "rehab" as used in real estate, it means buying a house that needs a lot of work, fixing it up and selling it to someone else. The goal, of course is to make money, but also to improve a neighborhood and provide a good house for someone.
For a lot of real estate investors a "big" rehab is fresh paint, new carpet and refinishing some hardwood floors, maybe glass block windows. Compared to that, what Tina did is a rehab on steroids. What she did really wasn't a rehab, but a rebuild. She did some amount of work on every inch of the house she bought.
She put new support structure in the basement, replaced the furnace and the plumbing, installed new windows, put in a new kitchen floor and new carpet, tore down a useless wall, gutted a bathroom, moved the electrical box and the laundry hookups and poured a new driveway. I'm tired just thinking about it. I need a break.
O.K., on top of all that - literally, on top of all that - she designed and had built the upstairs in the house. The structure was there, but there were no walls, just framing. She designed the layout herself and had her contractor build 3 new bedrooms and a new bathroom based on her design. Then she painted the house herself and found a buyer.
When all was said and done she had spent approximately 4 months and tens of thousands of dollars. She sold the house and made a nice profit. I don't know how much money she made, but I know she's a lot richer from the experience she gained. Most investors lose money on their first rehab project, Some lose their shirt and even more lose the desire to ever do another rehab project. It is rare, indeed, for an investor to turn a profit on their first rehab, especially one that big.
Congratulations, Tina.
Until next time - Make It Happen! Whatever "It" is in your life.
Bernie
Today I want to talk about one of my associates from the REIA of Macomb (REIA stands for Real Estate Investors Association an dyou can visit their site here http://www.reiaofmacomb.com/). I won't talk about them by name, but if they see this, they'll know who they are.
The person and project I want to tell you about today are really incredible. You might know her from a post a while back entitled "The Power of Teamwork". Her name is Tina. Tina just finished a big rehab project. No, not what you are thinking - Britney Spears is a different kind of big rehab project. For those of you not familiar with the term "rehab" as used in real estate, it means buying a house that needs a lot of work, fixing it up and selling it to someone else. The goal, of course is to make money, but also to improve a neighborhood and provide a good house for someone.
For a lot of real estate investors a "big" rehab is fresh paint, new carpet and refinishing some hardwood floors, maybe glass block windows. Compared to that, what Tina did is a rehab on steroids. What she did really wasn't a rehab, but a rebuild. She did some amount of work on every inch of the house she bought.
She put new support structure in the basement, replaced the furnace and the plumbing, installed new windows, put in a new kitchen floor and new carpet, tore down a useless wall, gutted a bathroom, moved the electrical box and the laundry hookups and poured a new driveway. I'm tired just thinking about it. I need a break.
O.K., on top of all that - literally, on top of all that - she designed and had built the upstairs in the house. The structure was there, but there were no walls, just framing. She designed the layout herself and had her contractor build 3 new bedrooms and a new bathroom based on her design. Then she painted the house herself and found a buyer.
When all was said and done she had spent approximately 4 months and tens of thousands of dollars. She sold the house and made a nice profit. I don't know how much money she made, but I know she's a lot richer from the experience she gained. Most investors lose money on their first rehab project, Some lose their shirt and even more lose the desire to ever do another rehab project. It is rare, indeed, for an investor to turn a profit on their first rehab, especially one that big.
Congratulations, Tina.
Until next time - Make It Happen! Whatever "It" is in your life.
Bernie
Tuesday, February 26, 2008
We Are Not Alone!
Hello! It's been a while, not that any of you missed me - I know better than that.
The title of my post does not indicate that beings from another planet have arrived in Detroit. On the other hand, it doesn't mean they haven't arrived, either! I suppose if they want to buy a house bring 'em on! Lots of 'em.
What I do mean is that we aren't alone in our housing slump. We aren't alone in our pain - at least on the housing front. In terms of overall economic decline, not many will argue that Michigan is suffering more than most - if not all - other states. Between the limping auto industry, the loss of other manufacturing jobs, declining housing values, an exodus of college gradutes to other states, Michigan has it pretty bad to be sure. Unscrupulous mortgage lenders and record foreclosures just seems to be piling on at this point.
There is good news and there is bad news with regard to real estate, though. First, the good news - we are not alone! Now for the bad news - we are not alone!
Let's talk about the good news first. I read an article today about the housing "crisis" and the top foreclosure markets in the country on a popular Internet site and guess what? Detroit wasn't mentioned once. Not once. Hooray! Michigan was only mentioned in passing, too, and referred to as "rounding out the top ten". This is good news on a couple of fronts. First, we aren't at the top of the list (Michigan still tops the unemployment list, however). In fact, we are barely in the top ten.
Second, there are a lot of other markets ahead of Michigan on the list - venerable, bullet-proof markets. Markets that everyone thought were untouchable juggernauts (I love that word) of appreciation. Markets everyone thought would be perpetually propped up by sunshine, an aging and mobile population and real estate investors. Markets like Florida (particularly highbrow Cape Coral & Fort Myers), Arizona (especially venerable Phoenix), Nevada (specifically Las Vegas, one of the fastest growing cities in the country for a long time), Georgia (did anyone ever think Atlanta would fall apart?), and California (exclusive Riverside / San Bernardino are in a shambles). These markets are now reeling from foreclosures as speculators (some of whom call themselves investors) walk away from condos purchased on the assumption that property values "can't go down", and owners that can't give their places away.
Don't misunderstand, I am not taking pleasure in the pain and suffering of other states. I'm not that cruel. At the same time, it is important for us to understand that Michigan is not alone. We see and hear so much negative news about the dire straits in Michigan that it's easy to think we are all alone in our misery. In some ways, it's almost easier to think we're alone - it makes us special in some sick way. We're different. Nobody understands what we're going through. We aren't alone, though, and we need to realize that the problems we have here are not unique. The causes may be different, but the results are the same.
We don't really need to talk about the bad news, do we?
Until next time - Make IT Happen (whatever IT is in your life)
Bernie
The title of my post does not indicate that beings from another planet have arrived in Detroit. On the other hand, it doesn't mean they haven't arrived, either! I suppose if they want to buy a house bring 'em on! Lots of 'em.
What I do mean is that we aren't alone in our housing slump. We aren't alone in our pain - at least on the housing front. In terms of overall economic decline, not many will argue that Michigan is suffering more than most - if not all - other states. Between the limping auto industry, the loss of other manufacturing jobs, declining housing values, an exodus of college gradutes to other states, Michigan has it pretty bad to be sure. Unscrupulous mortgage lenders and record foreclosures just seems to be piling on at this point.
There is good news and there is bad news with regard to real estate, though. First, the good news - we are not alone! Now for the bad news - we are not alone!
Let's talk about the good news first. I read an article today about the housing "crisis" and the top foreclosure markets in the country on a popular Internet site and guess what? Detroit wasn't mentioned once. Not once. Hooray! Michigan was only mentioned in passing, too, and referred to as "rounding out the top ten". This is good news on a couple of fronts. First, we aren't at the top of the list (Michigan still tops the unemployment list, however). In fact, we are barely in the top ten.
Second, there are a lot of other markets ahead of Michigan on the list - venerable, bullet-proof markets. Markets that everyone thought were untouchable juggernauts (I love that word) of appreciation. Markets everyone thought would be perpetually propped up by sunshine, an aging and mobile population and real estate investors. Markets like Florida (particularly highbrow Cape Coral & Fort Myers), Arizona (especially venerable Phoenix), Nevada (specifically Las Vegas, one of the fastest growing cities in the country for a long time), Georgia (did anyone ever think Atlanta would fall apart?), and California (exclusive Riverside / San Bernardino are in a shambles). These markets are now reeling from foreclosures as speculators (some of whom call themselves investors) walk away from condos purchased on the assumption that property values "can't go down", and owners that can't give their places away.
Don't misunderstand, I am not taking pleasure in the pain and suffering of other states. I'm not that cruel. At the same time, it is important for us to understand that Michigan is not alone. We see and hear so much negative news about the dire straits in Michigan that it's easy to think we are all alone in our misery. In some ways, it's almost easier to think we're alone - it makes us special in some sick way. We're different. Nobody understands what we're going through. We aren't alone, though, and we need to realize that the problems we have here are not unique. The causes may be different, but the results are the same.
We don't really need to talk about the bad news, do we?
Until next time - Make IT Happen (whatever IT is in your life)
Bernie
Tuesday, January 1, 2008
The Power of Teamwork
Happy New Year!!
I'm going to post today about a success story. It's a story about teamwork. About the power of teamwork. About a common goal. A vision. A story about partners vs. competitors. A story about changing lives. About doing good. About helping people. A story that's a good way to start a new year. At the end of my last post I talked about making a difference in the hypothetical. Today I'm going to talk about making a difference in the actual.
A few weeks ago a fellow member of the REIA of Macomb (REIA stands for Real Estate Investors Association - Click here to check out the REIA of Macomb site) posted a message on the group's Forum. She knew of a couple that were looking for a place to live. They're young, she said, and don't have a lot of money. They're good people, she said, and they need a break. Could anyone help them find a place, she asked, and, by the way, they need to move in around the first of the year.
I was taken at first by Tina's post because it fit exactly the strategy of BPS Property Solutions - find people that need a place and help them find it. Rent it, lease option it, whatever. As I thought more about the post, though, I was taken by Tina's desire - drive really - to help this couple.
It turns out the girl (who shall remain nameless) is the daughter of one of Tina's close friends. They were being forced out of their current place and needed a new place as soon as possible. Being young, they don't have a well established credit profile. They don't have a big down payment. They do have the desire to own their own home. This is the perfect scenario for a lease option. I was in. I contacted Tina as fast as I could and told her I would try to help find a place for her friend's daughter. I knew it would be a challenge - find a place, get it under contract, get it closed, do repairs and get them moved in, all inside of a month or so and for less than $650 a month during the holidays. But I was taken by Tina's drive and I was in (refer to my prior post titled What Are You WIlling To Do?).
As Tina and I met with them and looked at a couple of houses, we learned that they had looked at a house in a local community and tried to buy it outright on their own. They were unable to get the financing secured because of their short - and sketchy - credit profile and undocumentable income from tips and seasonal work. We continued to look for houses that met their criteria - thankfully they were realistic about their expectations and what they would get for the payment they can afford.
The house they tried to buy stuck in my brain. I found what I thought was the same house still listed and made an offer in the price range that would get them the payment they were looking for. I really didn't know that it was the right house, but it looked decent and fit their criteria so I was hopeful. Tina and I kept finding listings and looking at houses. Let me tell you that $25,000 won't get you many houses in move in condition - at least not in areas where a young couple would feel safe - and we needed a house in move in condition because of the short time frame. For $25 grand you can get a lot of "project" houses, you can get every kind of mold imagineable, you can get some pretty funky stuff.
I kept thinking about the house and believing that it would happen. As the days went by, though, I started to think that my offer was not just rejected, but ignored. We were closing in on Christmas without a sign of a house for them. I know there's a 'Twas The Night Before Christmas parody in there somewhere.
On December 26th, I got a call from my realtor saying that the bank had countered my offer and that she had accepted their counter on my behalf. I gulped, took a deep breath and asked what their counter was (I wanted the house, but it had to be at the right price in order for them to be able to make the payments). The house was listed at $39,900. My offer was $25,000 and the bank's counter was $26,000!! Or, wait, did she say $36,000? I asked her to repeat what she just said - I thought she meant $36,000 and I was ready to fire her! No, I heard correctly, $26,000. I called Tina and told her the good news.
There was this nagging thought in the back of my head - what if this wasn't the house? It was still a good house, but what if it wasn't the house they really wanted? I started feeling less happy and more worried - I had got this house without me or them ever seeing it. What if they didn't like it? What if? What if? What if? I knew the house was in great shape because Tina had looked at it while I was out of town. I knew it was a good deal. But, what if?
Well, we had the inspection on New Year's Eve and, guess what? It is the right house. It is in great shape. It is just what they wanted. A couple of finishing touches and a minor furnace repair are all that's needed. We are scheduled to close in mid January. By the way, they were trying to buy this house for more than the listing price!
I know there's a lot of painful little details in my recounting. I know it sounds like I'm boasting or bragging or looking for glory. My intention is not to sound boastful. Actually, that's exactly my intention. Not me boasting about me, but about what you can do when you put your mind to it. About what you can do when you have a great team. About what you can do with a common purpose and a vision. What you can do when your goal is to help people. What you can do when you put your ego behind you and your heart in front of you. Yes, I am boasting about what Tina and I accomplished. Not for my ego and not for Tina's. Not for glory. Not to be heroes. To show you that real people have the power to make a difference.
Tina and I are teammates in this deal. In another deal, or another house, we might be competing for ourselves, but in this deal we are teammates. In another deal, or another house, there will be an understanding that we do business the same way. The only way. With the same purpose and vision. And competitors or not, we'll each be just as happy to see the other "win". We will always know that what we did together changed 4 lives over this holiday season - hers, mine and two young people starting out the new year fresh. I think a quote from Tina's friend's daughter says it all, "From the moment we looked in windows of this house we knew this was the house we wanted". And now, they have it. Thanks to the power of teamwork. And thanks to Tina having the drive to make it happen and help people.
Until next time. Make It Happen - whatever IT is in your life.
I'm going to post today about a success story. It's a story about teamwork. About the power of teamwork. About a common goal. A vision. A story about partners vs. competitors. A story about changing lives. About doing good. About helping people. A story that's a good way to start a new year. At the end of my last post I talked about making a difference in the hypothetical. Today I'm going to talk about making a difference in the actual.
A few weeks ago a fellow member of the REIA of Macomb (REIA stands for Real Estate Investors Association - Click here to check out the REIA of Macomb site) posted a message on the group's Forum. She knew of a couple that were looking for a place to live. They're young, she said, and don't have a lot of money. They're good people, she said, and they need a break. Could anyone help them find a place, she asked, and, by the way, they need to move in around the first of the year.
I was taken at first by Tina's post because it fit exactly the strategy of BPS Property Solutions - find people that need a place and help them find it. Rent it, lease option it, whatever. As I thought more about the post, though, I was taken by Tina's desire - drive really - to help this couple.
It turns out the girl (who shall remain nameless) is the daughter of one of Tina's close friends. They were being forced out of their current place and needed a new place as soon as possible. Being young, they don't have a well established credit profile. They don't have a big down payment. They do have the desire to own their own home. This is the perfect scenario for a lease option. I was in. I contacted Tina as fast as I could and told her I would try to help find a place for her friend's daughter. I knew it would be a challenge - find a place, get it under contract, get it closed, do repairs and get them moved in, all inside of a month or so and for less than $650 a month during the holidays. But I was taken by Tina's drive and I was in (refer to my prior post titled What Are You WIlling To Do?).
As Tina and I met with them and looked at a couple of houses, we learned that they had looked at a house in a local community and tried to buy it outright on their own. They were unable to get the financing secured because of their short - and sketchy - credit profile and undocumentable income from tips and seasonal work. We continued to look for houses that met their criteria - thankfully they were realistic about their expectations and what they would get for the payment they can afford.
The house they tried to buy stuck in my brain. I found what I thought was the same house still listed and made an offer in the price range that would get them the payment they were looking for. I really didn't know that it was the right house, but it looked decent and fit their criteria so I was hopeful. Tina and I kept finding listings and looking at houses. Let me tell you that $25,000 won't get you many houses in move in condition - at least not in areas where a young couple would feel safe - and we needed a house in move in condition because of the short time frame. For $25 grand you can get a lot of "project" houses, you can get every kind of mold imagineable, you can get some pretty funky stuff.
I kept thinking about the house and believing that it would happen. As the days went by, though, I started to think that my offer was not just rejected, but ignored. We were closing in on Christmas without a sign of a house for them. I know there's a 'Twas The Night Before Christmas parody in there somewhere.
On December 26th, I got a call from my realtor saying that the bank had countered my offer and that she had accepted their counter on my behalf. I gulped, took a deep breath and asked what their counter was (I wanted the house, but it had to be at the right price in order for them to be able to make the payments). The house was listed at $39,900. My offer was $25,000 and the bank's counter was $26,000!! Or, wait, did she say $36,000? I asked her to repeat what she just said - I thought she meant $36,000 and I was ready to fire her! No, I heard correctly, $26,000. I called Tina and told her the good news.
There was this nagging thought in the back of my head - what if this wasn't the house? It was still a good house, but what if it wasn't the house they really wanted? I started feeling less happy and more worried - I had got this house without me or them ever seeing it. What if they didn't like it? What if? What if? What if? I knew the house was in great shape because Tina had looked at it while I was out of town. I knew it was a good deal. But, what if?
Well, we had the inspection on New Year's Eve and, guess what? It is the right house. It is in great shape. It is just what they wanted. A couple of finishing touches and a minor furnace repair are all that's needed. We are scheduled to close in mid January. By the way, they were trying to buy this house for more than the listing price!
I know there's a lot of painful little details in my recounting. I know it sounds like I'm boasting or bragging or looking for glory. My intention is not to sound boastful. Actually, that's exactly my intention. Not me boasting about me, but about what you can do when you put your mind to it. About what you can do when you have a great team. About what you can do with a common purpose and a vision. What you can do when your goal is to help people. What you can do when you put your ego behind you and your heart in front of you. Yes, I am boasting about what Tina and I accomplished. Not for my ego and not for Tina's. Not for glory. Not to be heroes. To show you that real people have the power to make a difference.
Tina and I are teammates in this deal. In another deal, or another house, we might be competing for ourselves, but in this deal we are teammates. In another deal, or another house, there will be an understanding that we do business the same way. The only way. With the same purpose and vision. And competitors or not, we'll each be just as happy to see the other "win". We will always know that what we did together changed 4 lives over this holiday season - hers, mine and two young people starting out the new year fresh. I think a quote from Tina's friend's daughter says it all, "From the moment we looked in windows of this house we knew this was the house we wanted". And now, they have it. Thanks to the power of teamwork. And thanks to Tina having the drive to make it happen and help people.
Until next time. Make It Happen - whatever IT is in your life.
Sunday, December 23, 2007
Happy Holidays
What I really wanted to say in the title above was Merry Christmas! I didn't want to be offensive in any way, though, so I stuck with Happy Holidays. What a joke - I'll leave it at that.
I am going to spend what is probably my last post of 2007 plugging my business and the service it provides. I talked a lot about what my mission statement means in my last post. I didn't talk much about what it is that my business actually does. Here it is, hold on, fasten your seatbelts because this is profound. We help good people find good houses and help them out of bad situations. I'll wait a moment for you to pick yourself up off the floor.
O.K. that was pretty deep wasn't it. That's my 30 second "elevator pitch". O.K. it's more like 3 seconds. You know the theory that you should be able to tell a stranger in an elevator what you do and why it matters in 30 seconds or less. I want to make sure they have time to tell me how they can help me :)
Through our Preferred Lease Option Program, we help folks with less than perfect credit move into homes without needing bank financing. For a small option fee, typically 3%-5% of the purchase price, a lease option buyer can secure an exclusive right to purchase the home at some point in the future. The option period is normally 2 years, but could also be 1 or 3 or any number of years the seller and buyer agree on. During the option period, the buyer (tenant) makes rent payments to the seller (landlord). At the end of the option period the buyer must qualify for some type of mortgage financing in order to purchase the home and payoff the seller / landlord.
The reality of the situation is that the tenant / buyers typically can't qualify for a mortgage right now so they are forced to rent. With a lease option - compared to a rental - the tenants are actually working toward purchasing the home they are living in. During the option period we work diligently with our clients to repair their credit score through aggressive techniques for correcting their credit reports and having erroneous, negative entries legally removed. We also work closely with our mortgage professionals to regularly monitor progress toward qualification for a mortgage. We keep open lines of communication during the entire process to help ensure successful completion of the lease purchase transaction.
Unlike many investors we work closely with clients to find the house that best fits their situation. Most investors keep an inventory of houses and try to find people to take them over on a lease option or rental basis. While we also maintain an inventory of properties, we work best when we work with our clients to find the right house. There are several reasons for this. Working so closely with our clients gives us an opportunity to counsel them about the mortgage process, the real estate market, the purchase process, budgeting and a whole host of other items. This counseling helps create more informed consumers of real estate services as well as loyal clients who show us their gratitude by referring their friends, relatives and co-workers. Further, folks who have had a hand in the selection of their lease option home are more likely to work hard toward the end goal - purchasing the house.
It is gratifying to know that you have helped someone reach a milestone in their life or maybe turn their life around. As we reflect on 2007 and plan for 2008, we realize that making a difference is what it's all about.
Until next time, Make It Happen - whatever IT is in your life. (Let's all include making a difference part of IT for 2008)
I am going to spend what is probably my last post of 2007 plugging my business and the service it provides. I talked a lot about what my mission statement means in my last post. I didn't talk much about what it is that my business actually does. Here it is, hold on, fasten your seatbelts because this is profound. We help good people find good houses and help them out of bad situations. I'll wait a moment for you to pick yourself up off the floor.
O.K. that was pretty deep wasn't it. That's my 30 second "elevator pitch". O.K. it's more like 3 seconds. You know the theory that you should be able to tell a stranger in an elevator what you do and why it matters in 30 seconds or less. I want to make sure they have time to tell me how they can help me :)
Through our Preferred Lease Option Program, we help folks with less than perfect credit move into homes without needing bank financing. For a small option fee, typically 3%-5% of the purchase price, a lease option buyer can secure an exclusive right to purchase the home at some point in the future. The option period is normally 2 years, but could also be 1 or 3 or any number of years the seller and buyer agree on. During the option period, the buyer (tenant) makes rent payments to the seller (landlord). At the end of the option period the buyer must qualify for some type of mortgage financing in order to purchase the home and payoff the seller / landlord.
The reality of the situation is that the tenant / buyers typically can't qualify for a mortgage right now so they are forced to rent. With a lease option - compared to a rental - the tenants are actually working toward purchasing the home they are living in. During the option period we work diligently with our clients to repair their credit score through aggressive techniques for correcting their credit reports and having erroneous, negative entries legally removed. We also work closely with our mortgage professionals to regularly monitor progress toward qualification for a mortgage. We keep open lines of communication during the entire process to help ensure successful completion of the lease purchase transaction.
Unlike many investors we work closely with clients to find the house that best fits their situation. Most investors keep an inventory of houses and try to find people to take them over on a lease option or rental basis. While we also maintain an inventory of properties, we work best when we work with our clients to find the right house. There are several reasons for this. Working so closely with our clients gives us an opportunity to counsel them about the mortgage process, the real estate market, the purchase process, budgeting and a whole host of other items. This counseling helps create more informed consumers of real estate services as well as loyal clients who show us their gratitude by referring their friends, relatives and co-workers. Further, folks who have had a hand in the selection of their lease option home are more likely to work hard toward the end goal - purchasing the house.
It is gratifying to know that you have helped someone reach a milestone in their life or maybe turn their life around. As we reflect on 2007 and plan for 2008, we realize that making a difference is what it's all about.
Until next time, Make It Happen - whatever IT is in your life. (Let's all include making a difference part of IT for 2008)
Tuesday, December 11, 2007
What Are You WIlling to Do...?
At some place, at some time I heard or read a quote, actually a question, about business philosophy and strategy. I assume it was a quote from an author and when I find out who it was I'll give proper credit here. I don't have to assume that it was and is a valuable quote, I know it is. It is valuable and relevant to the strategy of BPS Property Solutions, LLC. Our mission is:
"To be a full service real estate operation that offers creative solutions to any property situation."
On the surface it seems simple enough - solve problems for people. And, in fact, it is just that simple. What we do is solve problems. For homeowners. For homebuyers. For home sellers. For investors. It is pretty simple.
Here's the catch - sometimes the simple things are the hardest to do. I don't know why; maybe we take things for granted. Maybe we make things more difficult than what they are. Maybe we just forget. Maybe we get lost in the woods and don't see the trees. Maybe we get caught up in being strategic and forget about being tactical. Whatever the reason we need a way to get back on track. The mission statement is supposed to be that guidepost. The statement against which you evaluate every decision and measure every action. Is this - whatever this is -consistent with my mission?
So, what about the mysterious quote I referred to at the start of this post? And how do I bring this all back together and make sense? Yes, I know there are those of you saying "Pal, you ain't never bringin' this back together."
Here's the magical question the best I can remember it, "What are you willing and able to do that your competitors aren't?" Think about that for a minute and read it again.
I prefer to think of most other real estate investors as potential business partners rather than competitors. However, there is a finite number of houses and buyers and sellers, so at some level we are competing against each other. So, what am I willing and able to do that my competitors aren't? That is really the driving force behind the mission statement, isn't it?
"To be a full service real estate operation that offers creative solutions to any property situation."
"To be" - ah, the infamous verb To Be. Not "To Try". Not "To Want". Not "To Hope". "To Be". I think that says it all.
What does "full service" mean? It means going the extra step to look for one more listing or make one more call to find a lender or sitting down with a prospective buyer and counselling them about credit repair or where they really can afford to live or maybe that you can't help them even though you want to. Maybe it's continually building your network of resources. We all do that, don't we? Or do we? Do we get lazy in our comfort zone or do we get out and make new contacts. Do we build relationships with people or do we just do transactions? Do we care about our clients - really care - or are they disposable?
What about "...creative" ? Are we really creative or do we stay in our comfort zone and use the recipe we've always used? Are we willing to consult our "competitors" to get ideas? Are we willing to - God forbid - partner with one of our "competitors" to get a deal done for our client. Do we read and follow the news and trends so we can respond appropriately or don't we have time for that because we're too" busy"? Do we attend Real Estate Investor Association meetings to network (click here to visit Michigan's Premier Real Estate Investor's Association) and get ideas? Do we really "think outside the box" (a tired expression if ever there was one)? Or do we create a new box?
"... any property situation." Does it really mean "any" property situation? Or does it mean most? Or some? Or the ones I'm comfortable with? It has to mean "any" - which really means "all".
When I look at the mission in the context of what I'm willing and able to do, it really is that simple. Whenever I think I'm doing enough, I just have to think about what my "competitors", who in many cases are also my mentors and my friends are doing and I know I have to be willing to do more. And I have to find a way to be able to do more.
Now, I have to say that what I or anyone is "willing" to do does not extend to breaking the law, or acting immorally. That is unacceptable. You should NOT be "willing" to do that. You should not be "willing" to take advantage of people. You should not be "willing" to defraud people or make promises you can't keep to make a profit. And just because you are "able" to do something doesn't make it right to do it.
You should be willing to treat people with respect and dignity and care about them and sometimes for them.
So, is it really that simple? It depends on what you're willing to do.
Until later, Make It Happen - whatever IT is in your life.
"To be a full service real estate operation that offers creative solutions to any property situation."
On the surface it seems simple enough - solve problems for people. And, in fact, it is just that simple. What we do is solve problems. For homeowners. For homebuyers. For home sellers. For investors. It is pretty simple.
Here's the catch - sometimes the simple things are the hardest to do. I don't know why; maybe we take things for granted. Maybe we make things more difficult than what they are. Maybe we just forget. Maybe we get lost in the woods and don't see the trees. Maybe we get caught up in being strategic and forget about being tactical. Whatever the reason we need a way to get back on track. The mission statement is supposed to be that guidepost. The statement against which you evaluate every decision and measure every action. Is this - whatever this is -consistent with my mission?
So, what about the mysterious quote I referred to at the start of this post? And how do I bring this all back together and make sense? Yes, I know there are those of you saying "Pal, you ain't never bringin' this back together."
Here's the magical question the best I can remember it, "What are you willing and able to do that your competitors aren't?" Think about that for a minute and read it again.
I prefer to think of most other real estate investors as potential business partners rather than competitors. However, there is a finite number of houses and buyers and sellers, so at some level we are competing against each other. So, what am I willing and able to do that my competitors aren't? That is really the driving force behind the mission statement, isn't it?
"To be a full service real estate operation that offers creative solutions to any property situation."
"To be" - ah, the infamous verb To Be. Not "To Try". Not "To Want". Not "To Hope". "To Be". I think that says it all.
What does "full service" mean? It means going the extra step to look for one more listing or make one more call to find a lender or sitting down with a prospective buyer and counselling them about credit repair or where they really can afford to live or maybe that you can't help them even though you want to. Maybe it's continually building your network of resources. We all do that, don't we? Or do we? Do we get lazy in our comfort zone or do we get out and make new contacts. Do we build relationships with people or do we just do transactions? Do we care about our clients - really care - or are they disposable?
What about "...creative" ? Are we really creative or do we stay in our comfort zone and use the recipe we've always used? Are we willing to consult our "competitors" to get ideas? Are we willing to - God forbid - partner with one of our "competitors" to get a deal done for our client. Do we read and follow the news and trends so we can respond appropriately or don't we have time for that because we're too" busy"? Do we attend Real Estate Investor Association meetings to network (click here to visit Michigan's Premier Real Estate Investor's Association) and get ideas? Do we really "think outside the box" (a tired expression if ever there was one)? Or do we create a new box?
"... any property situation." Does it really mean "any" property situation? Or does it mean most? Or some? Or the ones I'm comfortable with? It has to mean "any" - which really means "all".
When I look at the mission in the context of what I'm willing and able to do, it really is that simple. Whenever I think I'm doing enough, I just have to think about what my "competitors", who in many cases are also my mentors and my friends are doing and I know I have to be willing to do more. And I have to find a way to be able to do more.
Now, I have to say that what I or anyone is "willing" to do does not extend to breaking the law, or acting immorally. That is unacceptable. You should NOT be "willing" to do that. You should not be "willing" to take advantage of people. You should not be "willing" to defraud people or make promises you can't keep to make a profit. And just because you are "able" to do something doesn't make it right to do it.
You should be willing to treat people with respect and dignity and care about them and sometimes for them.
So, is it really that simple? It depends on what you're willing to do.
Until later, Make It Happen - whatever IT is in your life.
Saturday, December 8, 2007
Introductory Blog
Hello to all who may stumble on this blog for better or for worse. In any case I welcome you to my new - and first ever - blog. This blog will attempt to chronicle the activities, successes and trials & tribulations of BPS Property Solutions, LLC. I will also mix in some personal perspective on life in Michigan and life in general. I hope you find my ramblings to be insightful, informative, challenging and, periodically, humorous. Actually, I just hope you find them.
At times I'll plug my business or some business partners that I believe add value to their respective fields. I'll also rant about people or businesses (not specifically, of course - I don't need to know any more about the laws surrounding libel!) that are less than desirable. So, be prepared for the occasional sales pitch - hey, at least I was upfront about it and didn't try to use subliminal advertising and brainwashing. BPS Property Solutions, LLC is great!!!!!!!
The Sky is Falling! The Sky is Falling! And the real estate market is falling with it. This is one of, if not THE "worst" real estate markets in Michigan history. The number of houses on the market is swelling monthly, daily in many areas. Foreclosures are at record levels and growing. New companies are letting workers go or shuttering their operations every day. The security of a "Big 3" job is far from secure. Bad things are happening to good people. Everywhere you look there are signs of economic disaster. These are indisputable facts and the sad realities of life in Michigan during 2007. Sadly, the reality will be much the same in 2008. There are billions yes billions with a B of adjustable rate mortgages scheduled to reset in 2008. What does that mean? More people will likely lose their homes in 2008 than in 2007, unless there is some government action.
Here's the contrarian view - and I'm prepared for the repercussions from what I'm about to say. This is one of, if not THE BEST, real estate markets in Michigan history. There is an entire industry dedicated to investing in real estate. As with any investment, the objective in real estate investing is to buy low. Whether the strategy is to sell for an immediate profit or hold for long-term appreciation or manage as a rental, the object is to buy low. First time homebuyers are also in a great position - they have never had as much choice or power as they have today. If they can get financing.
While it may seem on the surface that investors are "taking advantage" of people in bad situations, the reality is that scrupulous and honest investors are helping people out of a bad situation in many cases. Investors today are focusing on "Bank Owned" property also known as REO's, short for Real Estate Owned. This property has already been through the foreclosure process and is back in the possession of the bank. The former owners have moved on and the bank, through the sheriff sale process, has taken the property back into its possession and is now selling the house through conventional sales techniques, (i.e. realtors). Anyone can buy a foreclosed home - there's no magic to it. Investors know that banks are typically willing to sell these properties at discounted prices just to move them. At this point, the damage has been done to the former owner's credit and they've moved on. The investor didn't cause this. I'm not putting blame on the former owners, either (many of them were misled or coerced into their unaffordable mortgages by unscrupulous mortgage brokers and loan officers).
So, investors are buying these bank owned houses by the hundreds or thousands. So what? I said above that investors are helping - but how? People that have had the terrible and sad experience of being foreclosed on cannot qualify for a mortgage immediately. They also need a place to live. Where do they turn for housing? Renting. Who do they rent from? Investors. Investors are able to buy property so inexpensively now that they can rent these houses at very affordable rates to people who need good, solid, safe homes.
There is another phenomenon occurring - it's not new, it's just gaining widespread acceptance. Lease options, or rent-to-own as it used to be called, is the rage today. In a lease option, the buyer buys direct from the seller (investor) and does not need bank financing in order to move in. The buyer and seller enter into a typical rental agreement for a period of time. They also enter into an option agreement that allows the tenant/buyer to purchase the house from the seller/investor at a future date for a price determined in advance. The tenant/buyer gives the seller a small option fee to secure their right to purchase the property in the future. This fee is negotiable and is normally smaller than any straight purchase down payment. The fee is credited toward the purchase price if the tenant/buyer exercises the purchase option, but is forfeited if the option is not exercised. If structured properly, the investor can sell to the buyer at a profit while many times allowing the buyer to get a discount from market value and have immediate equity in the home. It's a win-win situation.
This is a terrific opportunity for someone with bruised credit to have the chance to own a home again. There are drawbacks, of course. The prospective buyer must be able to finance the purchase when the option period expires or the purchase never happens. In many cases the prospective buyer must complete a credit repair program and make all debt payments - not just rent - on time to be able to qualify for a mortgage when the time comes to exercise the option and avoid forfeiting their option fee.
As sad as it is, I have to mention that not all real estate investors are interested in win-win situations. They are interested in WIN situations and you can guess who the winner is. Not the tenant buyer in case you dozed off for a minute. There are investors out there that will steal equity from unsuspecting private sellers and turn them onto the street without blinking. They'll structure lease options that have no chance of performing just to keep the option fee and do it all over to someone else using the same house. They will inflate appraisals and manipulate comparative sales. They'll pressure people with nowhere else to turn into taking their deals. They'd steal from their children given the chance. BPS Property Solutions, LLC prides itself on integrity. What is integrity? Doing the right thing. All the time. No matter what.
Here's the first plug - we are proud members of the Real Estate Investors Association of Macomb (REIA of Macomb). This is a real estate investor group (hence the name) dedicated to honest real estate investing done with integrity. The group's members share ideas, strategies, resources and support in an effort to be successful entrepreneurs. Check out this link to see Michigan's Premier Real Estate Investors Association.
Well, I'm worn out from this first entry - and I imagine you are too if you've stayed with me this long.
Until next time - Make It Happen!! (whatever "IT" is in your life)
At times I'll plug my business or some business partners that I believe add value to their respective fields. I'll also rant about people or businesses (not specifically, of course - I don't need to know any more about the laws surrounding libel!) that are less than desirable. So, be prepared for the occasional sales pitch - hey, at least I was upfront about it and didn't try to use subliminal advertising and brainwashing. BPS Property Solutions, LLC is great!!!!!!!
The Sky is Falling! The Sky is Falling! And the real estate market is falling with it. This is one of, if not THE "worst" real estate markets in Michigan history. The number of houses on the market is swelling monthly, daily in many areas. Foreclosures are at record levels and growing. New companies are letting workers go or shuttering their operations every day. The security of a "Big 3" job is far from secure. Bad things are happening to good people. Everywhere you look there are signs of economic disaster. These are indisputable facts and the sad realities of life in Michigan during 2007. Sadly, the reality will be much the same in 2008. There are billions yes billions with a B of adjustable rate mortgages scheduled to reset in 2008. What does that mean? More people will likely lose their homes in 2008 than in 2007, unless there is some government action.
Here's the contrarian view - and I'm prepared for the repercussions from what I'm about to say. This is one of, if not THE BEST, real estate markets in Michigan history. There is an entire industry dedicated to investing in real estate. As with any investment, the objective in real estate investing is to buy low. Whether the strategy is to sell for an immediate profit or hold for long-term appreciation or manage as a rental, the object is to buy low. First time homebuyers are also in a great position - they have never had as much choice or power as they have today. If they can get financing.
While it may seem on the surface that investors are "taking advantage" of people in bad situations, the reality is that scrupulous and honest investors are helping people out of a bad situation in many cases. Investors today are focusing on "Bank Owned" property also known as REO's, short for Real Estate Owned. This property has already been through the foreclosure process and is back in the possession of the bank. The former owners have moved on and the bank, through the sheriff sale process, has taken the property back into its possession and is now selling the house through conventional sales techniques, (i.e. realtors). Anyone can buy a foreclosed home - there's no magic to it. Investors know that banks are typically willing to sell these properties at discounted prices just to move them. At this point, the damage has been done to the former owner's credit and they've moved on. The investor didn't cause this. I'm not putting blame on the former owners, either (many of them were misled or coerced into their unaffordable mortgages by unscrupulous mortgage brokers and loan officers).
So, investors are buying these bank owned houses by the hundreds or thousands. So what? I said above that investors are helping - but how? People that have had the terrible and sad experience of being foreclosed on cannot qualify for a mortgage immediately. They also need a place to live. Where do they turn for housing? Renting. Who do they rent from? Investors. Investors are able to buy property so inexpensively now that they can rent these houses at very affordable rates to people who need good, solid, safe homes.
There is another phenomenon occurring - it's not new, it's just gaining widespread acceptance. Lease options, or rent-to-own as it used to be called, is the rage today. In a lease option, the buyer buys direct from the seller (investor) and does not need bank financing in order to move in. The buyer and seller enter into a typical rental agreement for a period of time. They also enter into an option agreement that allows the tenant/buyer to purchase the house from the seller/investor at a future date for a price determined in advance. The tenant/buyer gives the seller a small option fee to secure their right to purchase the property in the future. This fee is negotiable and is normally smaller than any straight purchase down payment. The fee is credited toward the purchase price if the tenant/buyer exercises the purchase option, but is forfeited if the option is not exercised. If structured properly, the investor can sell to the buyer at a profit while many times allowing the buyer to get a discount from market value and have immediate equity in the home. It's a win-win situation.
This is a terrific opportunity for someone with bruised credit to have the chance to own a home again. There are drawbacks, of course. The prospective buyer must be able to finance the purchase when the option period expires or the purchase never happens. In many cases the prospective buyer must complete a credit repair program and make all debt payments - not just rent - on time to be able to qualify for a mortgage when the time comes to exercise the option and avoid forfeiting their option fee.
As sad as it is, I have to mention that not all real estate investors are interested in win-win situations. They are interested in WIN situations and you can guess who the winner is. Not the tenant buyer in case you dozed off for a minute. There are investors out there that will steal equity from unsuspecting private sellers and turn them onto the street without blinking. They'll structure lease options that have no chance of performing just to keep the option fee and do it all over to someone else using the same house. They will inflate appraisals and manipulate comparative sales. They'll pressure people with nowhere else to turn into taking their deals. They'd steal from their children given the chance. BPS Property Solutions, LLC prides itself on integrity. What is integrity? Doing the right thing. All the time. No matter what.
Here's the first plug - we are proud members of the Real Estate Investors Association of Macomb (REIA of Macomb). This is a real estate investor group (hence the name) dedicated to honest real estate investing done with integrity. The group's members share ideas, strategies, resources and support in an effort to be successful entrepreneurs. Check out this link to see Michigan's Premier Real Estate Investors Association.
Well, I'm worn out from this first entry - and I imagine you are too if you've stayed with me this long.
Until next time - Make It Happen!! (whatever "IT" is in your life)
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