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)
Sunday, December 23, 2007
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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