If you have your finances pretty well in order and you think you know what you want, don't change anything that would affect your financial profile. Don't quit your job, even if you hate it keep grin and bear it for a little while longer. Don't sign up for any new credit cards. Don't get rid of your credit cards. Don't borrow any more money unless it's an emergency. Don't let them repossess your car. Keep all your insurances in force. And so on. Whatever it is, don't quit your job, even if you hate it. Grin and bear it for a while longer. Once you've bought the house, then quit if you want to.
I'm trying to create a more informed real estate customer. Is this working?
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Monday, September 28, 2009
Thursday, September 24, 2009
Financial Institutions
If you don't already have a strong relationship with a financial institution, start one. Shop around. Interview banks. Ask your friends what banks they use. Talk to lending officers about your plans. See what they say. Then take out a checking or savings account at whatever bank you choose. The best kind of bank for you right now is a small, community bank that didn't invest heavily in real estate. It's sounder and tends to be locally controlled, so you get better service. The last kind of partner you want is some national bank who has a branch in your area, but the leding decisions are made in Chicago, the underwriters are based in Los Angeles, and appraisals are ordered out of Houston. Chances are the person you talk to won't know anyone in these far-off places and lots of weird things can happen. A local bank will more likely be locally controlled, so they'll be more responsive to you overall and a stronger partner for you.
If you're already a customer of a bank, and you're happy with it, develop that relationship. Meet the loan officer. Take him or her to lunch. Discuss your plans with them. They'll be happy to talk with you, and since you're already a customer, they'll bend over backward to make you happy because it costs far less to keep a customer than it does to get a new one. And their bosses are looking at them to see how many good loans they're making. It'll be in their interest to work with you.
Whatever financial partner you choose, treat them as a trusted advisor. Share your plans with them. If you have credit problems, get their opinions. Follow their advice. Ask them to review your credit report and tell them what you're doing to repair your credit. If you have a business, too, talk to them about that. We tend to think of banks as big cash registers. They are, but they are also an excellent source of financial and business advice.
Keep in mind, banks tend to be conservative, though there's nothing wrong with that. If the last few years have shown us anything, it's that we need a healthy dose of conservative financial practice. We paid to much for stuff, bought way more stuff than we needed, borrowed when we should have foregone and done with less. Now we're all paying the price.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
If you're already a customer of a bank, and you're happy with it, develop that relationship. Meet the loan officer. Take him or her to lunch. Discuss your plans with them. They'll be happy to talk with you, and since you're already a customer, they'll bend over backward to make you happy because it costs far less to keep a customer than it does to get a new one. And their bosses are looking at them to see how many good loans they're making. It'll be in their interest to work with you.
Whatever financial partner you choose, treat them as a trusted advisor. Share your plans with them. If you have credit problems, get their opinions. Follow their advice. Ask them to review your credit report and tell them what you're doing to repair your credit. If you have a business, too, talk to them about that. We tend to think of banks as big cash registers. They are, but they are also an excellent source of financial and business advice.
Keep in mind, banks tend to be conservative, though there's nothing wrong with that. If the last few years have shown us anything, it's that we need a healthy dose of conservative financial practice. We paid to much for stuff, bought way more stuff than we needed, borrowed when we should have foregone and done with less. Now we're all paying the price.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Monday, September 21, 2009
Get Wrong Stuff Off Your Credit Reports
Once you've gotten your buying behavior in line, start on your current credit reports. Examine each of them for any false information on it. If there's any wrong information, challenge it in writing. And keep a copy. They have to come up with a result within 30 days. If they don't, they're required to take it off. Did I tell you to keep a copy? Well, keep a copy. And while you're doing that, keep a copy.
Studies have found very high error rates by these credit reporting agencies. They don't have the staff, or care, enough to check out all the data they get sent. So it's not totally improbable that there would be some information on there that's not right. This will improve your credit score just by having this stuff off there.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Studies have found very high error rates by these credit reporting agencies. They don't have the staff, or care, enough to check out all the data they get sent. So it's not totally improbable that there would be some information on there that's not right. This will improve your credit score just by having this stuff off there.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Thursday, September 17, 2009
Look in the Mirror
The first step in improving your credit score is to start behaving in ways that cause credit scores to be low. Pay your bills on time. If you're behind on any, talk to your creditors and work out a plan. Offer in writing to pay them on time and include a check with your offer. Chances are they will accept your offer which means they can stop worrying about you and go on to their next problem. Then, keep your bargain with them. If you do that, your credibility will soar in their eyes.
If you are being hounded by collection agencies, do not avoid them. Talk to them. Chances are you will be able to work something out with them. If not, you know more what you're up against.
If you really feel hopeless, find a credit counselor in your area. Many non-profit agencies have them. They'll work with you. I would not pick one I have to pay, thought, except as a last resort and then check them out so you know they're on the up and up. The last thing you want is to be victimized by the very folks you engaged to help you get out of being victimized.
If you are in this bad a shape, though, you should probably put aside the idea of buying a house right now until your finances are in order.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
If you are being hounded by collection agencies, do not avoid them. Talk to them. Chances are you will be able to work something out with them. If not, you know more what you're up against.
If you really feel hopeless, find a credit counselor in your area. Many non-profit agencies have them. They'll work with you. I would not pick one I have to pay, thought, except as a last resort and then check them out so you know they're on the up and up. The last thing you want is to be victimized by the very folks you engaged to help you get out of being victimized.
If you are in this bad a shape, though, you should probably put aside the idea of buying a house right now until your finances are in order.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Sunday, September 13, 2009
Importance of Good Credit
My father, who worked for GE for 50 years, held over 750 patents through GE, was an expert on protecting NASA's launches from lightening strikes, voted Republican every time (he gave John Kennedy 2 weeks to prove himself--and failed of course) always said to keep good credit.
He used to say: "My dad would have lost the store if he hadn't always paid his bills on time."
His father owned the Bosworth Hardware Store in downtown Cleveland all through the depression. His suppliers cut him slack because he had built up all kinds of trust with them. My uncle inherited the store, moved it around the corner from Euclid Avenue when the neighborhood shifted from residential to business, and called it Bosworth Industrial Supply Company. My uncle has passed on, and I don't know if it's still there. I suppose I could google it.
Anyway, credit is equally important today. In looking to buy a home, make sure your credit is absolutely top notch.
Your credit score is being used more and more by all sorts of companies to decide whether they should do business with you and if so how risky a customer you are.
Mortgage companies will not lend to you if your credit score is not high enough, and they will offer you a lower if your credit score is higher.
Insurance companies will not insure your properties if your credit score is really bad. And they will charge you less the higher the score.
All kinds of companies are relying on credit scores in monetizing the risk of doing business with you.
They didn't have credit scores in my father's day, but credit was very important. It remains so today.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
He used to say: "My dad would have lost the store if he hadn't always paid his bills on time."
His father owned the Bosworth Hardware Store in downtown Cleveland all through the depression. His suppliers cut him slack because he had built up all kinds of trust with them. My uncle inherited the store, moved it around the corner from Euclid Avenue when the neighborhood shifted from residential to business, and called it Bosworth Industrial Supply Company. My uncle has passed on, and I don't know if it's still there. I suppose I could google it.
Anyway, credit is equally important today. In looking to buy a home, make sure your credit is absolutely top notch.
Your credit score is being used more and more by all sorts of companies to decide whether they should do business with you and if so how risky a customer you are.
Mortgage companies will not lend to you if your credit score is not high enough, and they will offer you a lower if your credit score is higher.
Insurance companies will not insure your properties if your credit score is really bad. And they will charge you less the higher the score.
All kinds of companies are relying on credit scores in monetizing the risk of doing business with you.
They didn't have credit scores in my father's day, but credit was very important. It remains so today.
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Thursday, September 10, 2009
Write Out a Plan
Here's what I said on October 20, 2007, in my other real estate blog: Real Estate 2.0."
6) WHO: Who's going to live in the house and who's going to do the looking.
7) HOW MUCH: How much can you or do you want to afford to pay.
I'm trying to create a more knowledgeable buyer. How am I doing?
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
After you've done some initial thinking on the subject, brainstormed with your family members, etc., you should write out a plan. Write it down. Have your plan cover the 5 W's.I haven't changed my mind about the process, but I'd add two more questions:
1) WHAT kind of house you're looking for. Single family, condo, etc., along with its desired features, i.e. number of bedrooms, bathrooms, amenities, etc.
2) WHERE: Where you want to live. If you're moving to a city, what part of the city you want to live in. You may not be sure about this yet, and that's okay, particularly if it's a city you don't know well.
3) WHY: Why you're wanting a house. This may not be so simple as you think. Use a 5 Why tactic to clarify you're reasons.
4) WHEN you're going to look and when you need to move in.
5) HOW you are going to pay for it. [This is actually a H] Are you going to use cash or some sort of financing. Writing it down is the absolutely necessary. And if you don't have all the answers right then, writing it down will help you know what you don't know. After all, knowing what you don't know is just as important as what you do know.
6) WHO: Who's going to live in the house and who's going to do the looking.
7) HOW MUCH: How much can you or do you want to afford to pay.
I'm trying to create a more knowledgeable buyer. How am I doing?
For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Monday, September 7, 2009
Paranoia in Real Estate Deals
There is room for paranoia in real estate. People do try things that aren't legal or ethical. But often a buyer or seller wills say, regarding something the other side does that seems unusual to them, "What are they up to?"
Usually this happens because the other side has not appeared to have acted in a way that is congruent with the way the speaker imagines a reasonable person would act in their situation. They may mean that the other person has acted as they might.
There is always the possibility of something troublesome going on with the other side. That is by the buyer with regard to the seller, or vice verse.
Not mot of the time, though you hear enough stories that you think the incidence of skulduggery in real estate is a log higher than it really is. For example, on one of my deals, the appraiser was in th house completing the appraisal ordered by the buyer's lender. The seller, who was there to let him in, asked the appraiser when the approval process would be complete. The appraiser said (It was Friday morning at the time) "I'll have the appraisal done today, my report in by Tuesday, and the approval should come on Wednesday.
Wednesday came and went, but no bank approval. My client was on the phone to me: "What are they trying to pull. I told him it didn't mean they were "pulling" anything. Things might just be slower than expected. And that's exactly what happened. On Friday the appraisal was approved and the house settled.
The moral of the story is not to assume the worst unless the worst is justified.
I'm trying to create a more knowledgeable buyer. How am I doing?
I have some other blogs, too. For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Usually this happens because the other side has not appeared to have acted in a way that is congruent with the way the speaker imagines a reasonable person would act in their situation. They may mean that the other person has acted as they might.
There is always the possibility of something troublesome going on with the other side. That is by the buyer with regard to the seller, or vice verse.
Not mot of the time, though you hear enough stories that you think the incidence of skulduggery in real estate is a log higher than it really is. For example, on one of my deals, the appraiser was in th house completing the appraisal ordered by the buyer's lender. The seller, who was there to let him in, asked the appraiser when the approval process would be complete. The appraiser said (It was Friday morning at the time) "I'll have the appraisal done today, my report in by Tuesday, and the approval should come on Wednesday.
Wednesday came and went, but no bank approval. My client was on the phone to me: "What are they trying to pull. I told him it didn't mean they were "pulling" anything. Things might just be slower than expected. And that's exactly what happened. On Friday the appraisal was approved and the house settled.
The moral of the story is not to assume the worst unless the worst is justified.
I'm trying to create a more knowledgeable buyer. How am I doing?
I have some other blogs, too. For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
Friday, September 4, 2009
Find Out What You Want
The first step in buying a house is finding out what you want. Sounds like a no brainer, but I mean by "what you want" is what you really want. And knowing that may not be as simple as you think.
I've had a lot of buyers who got all the way into their home buying process and found out they didn't know really what they wanted because they didn't like any of the houses I showed them. Maybe what they really wanted was not to buy a house at all.
Now maybe you have a lot of time to figure this out or you don't. You may have to buy a house right away because of a prospective move, or you lost your lease unexpectedly, like David Niven and Doris Day in Please Don't Eat the Movies.
Or maybe an opportunity for that perfect job came up at the last minute and you have to decide whether to take it or not and if you decide to take it you have to get there right away and you need a house to live in for some reason as opposed to renting right away.
More later.
I'm trying to create a more knowledgeable buyer. How am I doing?
I have some other blogs, too. For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
I've had a lot of buyers who got all the way into their home buying process and found out they didn't know really what they wanted because they didn't like any of the houses I showed them. Maybe what they really wanted was not to buy a house at all.
Now maybe you have a lot of time to figure this out or you don't. You may have to buy a house right away because of a prospective move, or you lost your lease unexpectedly, like David Niven and Doris Day in Please Don't Eat the Movies.
Or maybe an opportunity for that perfect job came up at the last minute and you have to decide whether to take it or not and if you decide to take it you have to get there right away and you need a house to live in for some reason as opposed to renting right away.
More later.
I'm trying to create a more knowledgeable buyer. How am I doing?
I have some other blogs, too. For my thoughts on entrepreneurship, go to www.hatman2.blogspot.com.
Go to www.byandforwriters.blogspot.com if you would like to get a short story published.
For tips on writing and to read my book for free go to www.kearneymusicschoolmurders.blogspot.com.
For a proper connection strategy, go to www.referralbasedbranding.blogspot.com
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