The Byron Blog

Choices

“When you wrestle with your choices you can take that as a sign that good sense will return, sooner or later.”

Have you ever found yourself in a position that forced you to make decisions you might not have made at another time?  Maybe you run out of gas on the way to an important meeting causing you to adjust your commute.  Perhaps there is a slow train blocking your normal route.  When an inconvenience causes your normal plans to be thwarted, you have the option to 1.  Wait for the inconvenience to disappear (ie, the passing train is gone), or 2.  Choose an alternate path.

When we wait for inconveniences to pass, there is less action and the responsibility for solving the problem remains outside ourselves.  Once the train passes, or the tow truck brings some gas, we continue on our way. 

On the other hand, choosing an alternate path gives us the responsibility for the new chosen solution.  For example, since we know the train is going slowly and there are several places we can turn to cross the tracks, we might alter our route and avoid the train all together.  Maybe we also choose to buy gas before the last second and our tank never runs empty.  With a full tank of gas and an alternate route to the meeting, everything goes smoothly and we are on time.

There is another example that many home owners and investors are experiencing.  The recent decline in property values and the number of less than perfect loans written during the past seven years, many people are finding their sure-fire investment in Real Estate worth considerably less than they planned.  Those who have also experienced a decrease in earnings might find themselves getting a little behind on the mortgage payments.  The banks and their investors expect borrowers to continue to pay even if you lose income.  If you don’t pay, the bank wants to protect their cash investment and will take back the collateral that secures the mortgage…usually your home.

Foreclosure seems like the nasty ole bank coming after an innocent homeowner to steal their house and all the equity.  However, foreclosure is a legal process that is used to protect the investment made by the bank when they believed you would honor your commitments to pay them back.  When you cannot pay them back the money owed, they have very few options but to take the house instead.  They might offer loan modification as an alternate way for you to keep the home.  This enables them to lose less money than if they take the house back in foreclosure.  Foreclosure is a mechanism that forces the homeowner to relinquish their rights to a property, whether or not they prefer to do so.

Are there any other options?

There is another way.  A bank can accept less than the amount owed to them in the mortgage.  They are not obligated to do this, but it is normally in their best interest to allow the homeowner to sell their house for less than the mortgage amount because this amount is still more than they would receive if they take the house to a full foreclosure.  Selling a house for less than the amount owed is normally called a “short sale”.  The bank chooses to accept a payoff amount that is less.  Less expensive for them, and much more beneficial for the homeowner who is voluntarily (though not necessarily happily) relinquishing their rights to the property by selling it to someone else.  Since the homeowner is leaving the property voluntarily, there is normally less damage to the home than a disgruntled owner who sometimes tries to “get back at the bank.”  Doing damage to a property is still vandalism – not a recommended solution to anger management issues – and can be prosecuted.

Tell me about Short Sale options

Offering a property for sale for less than the mortgage amount is fairly straight forward.  Listing the property in MLS is required by the bank; this helps to determine the market value of the property.  In the listing there are a couple of contingencies listed stating that the sale has conditions.  Third-party lender approval of the sale is one common contingency.  Some MLS systems offer an explicit “Short Sale” category telling other Realtors and potential buyers that this sale is a little bit special.

The Problem

The biggest problem with a short sale is the amount of time they take.  Once the property is listed in MLS, the property could theoretically be sold right away.  The only thing is, the bank has to review all offers on the property.  This can take almost forever.  Since banks are processing so many short sale requests right now, the file will sit on their desk for an average of 30 days before anyone even looks at it.  The first part of the short sale process is waiting for a bank employee to be assigned to review the offer.  The next thing that happens is waiting for the bank to hire someone to go out to the house and tell them how much the property is worth.  Before any action has happened, we have waited at least 35-45 days.  At this point the bank can consider the offer that was submitted.  Reviewing the offer in comparison to the perceived value of the property, the bank could in theory decide in 5 minutes that the offer is or is not good enough to accept.  In many cases, this process does not take 5 minutes.  This process might take 5 months and can take even longer.  While all of this waiting is taking place, the buyer who made the original offer gets extremely tired of waiting.  They don’t really need to wait for this offer to be accepted because they can walk down the street and buy a different house for possibly less than their offer to the bank 90 or so days earlier.  They cancel their offer on the property and leave the homeowner with no buyer.  This process can be extraordinarily frustrating.

The Solution

There is a very good solution to this problem!  Let me summarize a short sale briefly for you here.  I write an agreement with the property owner.  The agreement includes the information about the mortgages and authorization to speak with all lenders for the property.  A member of my team begins negotiating with the lenders to justify a price they will accept so we can buy and sell the property.  At the same time that the negotiations are taking place, the property is listed in MLS.  Every couple weeks the listing price for the property is reduced.  Eventually the market price of the property will be determined because buyers will start being interested and making offers.

This Really Works

The main advantage this solution provides is that an offer is made to the lenders very early in the sale process.  There is no waiting for a buyer to take interest in the property that is listed for a price that is too high.  As the negotiations are taking place, the price is adjusting so buyers will begin to take interest as the process nears completion.  We help another family avoid foreclosure.  We give the bank more money than they would receive through foreclosure.  We hopefully make some money for solving the problem for all parties.

There is a solution.

Real Estate Tidbit:

I can help you as a Realtor to get more houses sold.  My current focus is on luxury homes.  I can consider lower priced homes on a case by case basis.  Visit www.SecretWeaponForRealtors.com to learn how I can help you.  If you’re not a Realtor, the site www.FriendlyHouseBuyer.com might be more helpful for you.  Contact me and let me know about your situation.

Plenty

How much is enough? Have you got more than enough to meet your own needs? Are you struggling to meet your daily needs?

The question of plenty forces us to think about our basic needs. Many people in North America have disproportionately more than most of the rest of the world – and yet we don’t think we have plenty. We want more and more stuff. We think that this stuff that we want will bring us happiness.

Happiness

What is happiness? For many, happiness is the belief that we got what we wanted. When a child is begging (usually loudly) for a bling bling or toy at the store, the belief that receiving that oh so desired thing will make them happy, dominates their thinking. The parent who gives in and provides that trinket is often buying quiet or perceived peace, not necessarily acting in the child’s best interest. The child learns that if he or she makes enough fuss, that cherished thing will be theirs.

More stuff = more happy.

But is this really true? How long is the pacified child happy with their new toy? 5 minutes? 5 days? How different are you and I than the briefly pacified child? If you can be honest with yourself, answer this question:

Does more stuff make you happier?

I have met people in several third world countries who are happier than most of my rich friends. They might like more stuff, but they have learned a lesson that we can benefit from. If I have enough food to eat; clothes to wear and a roof over my head to shelter me from the desert or the winter, I have plenty. Being warm, fed and protected is the beginning. After my basic needs are met, I begin to look out for my other needs. One that seems to be overlooked by many people is the need to share.

When my basic needs are met, how can I help you to meet your basic needs? What can I do to provide food, shelter and clothing for you? When we can both work together to meet the needs of more and more people, we have risen to another level. When I give of my plenty and help you to also have plenty we both can share our plenty with more and we together can change the world.

Is your goal in life to have plenty, or to change the world?

The maverick mentality says there are two basic motivators: greed and fear. Let me suggest that there is indeed a third: love.
When I can love my neighbor as I love myself, I have risen above the basic motivators of greed and fear. I choose to do things that benefit my neighbor whether or not they immediately or directly benefit me. Some of my mentors call this, “Giving Back.”

When I have something to share that benefits you, we together can work together to learn how to share with others.

Is this Socialism? No.

My choice to share with you is a gift from me, to you. No one forces me to give a gift. The moment I am under obligation to give, it’s no longer a gift.

But…

You can’t give or share something you do not have. What can I do to create more to share? Is money the only thing I could share? Is the knowledge I have worth sharing with you? Will you benefit from my years of experience in a way that sharing that experience will be helpful?

Real Estate Tidbit

Here is a Real Estate tidbit I will share with you:

A. Real Estate can make you Rich.
B. Real Estate can make you Broke.

Correctly bought, houses and other forms of Real Estate will bring in large paychecks. Incorrectly bought, the same purchases will make you broke.

Stay tuned for more. Lots of learning will follow.

Challenging us to press on

And God So Loved the World …

‘Let me explain the problem science has with religion.’ The atheist professor of philosophy pauses before his class and then asks one of his new students to stand.

‘You’re a Christian, aren’t you, son?’

‘Yes sir,’ the student says.

‘So you believe in God?’

‘Absolutely.’

‘Is God good?’

‘Sure! God’s good.’

‘Is God all-powerful? Can God do anything?’

‘Yes’

‘Are you good or evil?’

‘The Bible says I’m evil.’

The professor grins knowingly. ‘Aha! The Bible!’ He considers for a moment. ‘Here’s one for you. Let’s say there’s a sick person over here and you can cure him. You can do it. Would you help him? Would you try?’

‘Yes sir, I would.’

‘So you’re good…!’

‘I wouldn’t say that.’

‘But why not say that? You’d help a sick and maimed person if you could. Most of us would if we could. But God doesn’t.’

The student does not answer, so the professor continues. ‘He doesn’t, does he? My brother was a Christian who died of cancer, even though he prayed to Jesus to heal him. How is this Jesus good? Hmmm? Can you answer that one?’

The student remains silent.

‘No, you can’t, can you?’ the professor says. He takes a sip of water from a glass on his desk to give the student time to relax.

‘Let’s start again, young fella. Is God good?’

‘Er..yes,’ the student says.

Prof. ‘Is Satan good?’

The student doesn’t hesitate on this one. ‘No.’

‘Then where does Satan come from?’

The student falters. ‘From God’

‘That’s right.. God made Satan, didn’t he? Tell me, son. Is there evil in this world?’

‘Yes, sir.’

‘Evil’s everywhere, isn’t it? And God did make everything, correct?’

‘Yes’

‘So who created evil?’ The professor continued, ‘If God created everything, then God created evil, since evil exists, and according to the principle that our works define who we are, then God is evil.’

Again, the student has no answer. ‘Is there sickness? Immorality? Hatred? Ugliness? All these terrible things, do they exist in this world?’

The student squirms on his feet. ‘Yes.’

‘So who created them?’

The student does not answer again, so the professor repeats his question. ‘Who created them?’ There is still no answer. Suddenly the lecturer breaks away to pace in front of the classroom. The class is mesmerized. ‘Tell me,’ he continues onto another student. ‘Do you believe in Jesus Christ, son?’

The student’s voice betrays him and cracks. ‘Yes, professor, I do.’

The old man stops pacing. ‘Science says you have five senses you use to identify and observe the world around you. Have you ever seen Jesus?’

‘No sir. I’ve never seen Him.’

‘Then tell us if you’ve ever heard your Jesus?’

‘No, sir, I have not.’

‘Have you ever felt your Jesus, tasted your Jesus or smelt your Jesus? Have you ever had any sensory perception of Jesus Christ, or God for that matter?’

‘No, sir, I’m afraid I haven’t.’

‘Yet you still believe in him?’

‘Yes’

‘According to the rules of empirical, testable, demonstrable protocol, science says your God doesn’t exist. What do you say to that, son?’

‘Nothing,’ the student replies. ‘I only have my faith.’

‘Yes, faith,’ the professor repeats. ‘And that is the problem science has with God. There is no evidence, only faith.’

The student stands quietly for a moment, before asking a question of His own. ‘Professor, is there such thing as heat?’

‘Yes.

‘And is there such a thing as cold?’

‘Yes, son, there’s cold too.’

‘No sir, there isn’t.’

The professor turns to face the student, obviously interested. The room suddenly becomes very quiet. The student begins to explain. ‘You can have lots of heat, even more heat, super-heat, mega-heat, unlimited heat, white heat, a little heat or no heat, but we don’t have anything called ‘cold’. We can hit up to 458 degrees below zero, which is no heat, but we can’t go any further after that. There is no such thing as cold; otherwise we would be able to go colder than the lowest -458 degrees.’

‘Everybody or object is susceptible to study when it has or transmits energy, and heat is what makes a body or matter have or transmit energy. Absolute zero (-458 F) is the total absence of heat. You see, sir, cold is only a word we use to describe the absence of heat. We cannot measure cold. Heat we can measure in thermal units because heat is energy. Cold is not the opposite of heat, sir, just the absence of it.’

Silence across the room. A pen drops somewhere in the classroom, sounding like a hammer.

‘What about darkness, professor. Is there such a thing as darkness?’

‘Yes,’ the professor replies without hesitation. ‘What is night if it isn’t darkness?’

‘You’re wrong again, sir. Darkness is not something; it is the absence of something.. You can have low light, normal light, bright light, flashing light, but if you have no light constantly you have nothing and it’s called darkness, isn’t it? That’s the meaning we use to define the word.’

‘In reality, darkness isn’t. If it were, you would be able to make darkness darker, wouldn’t you?’

The professor begins to smile at the s student in front of him. This will be a good semester. ‘So what point are you making, young man?’

‘Yes, professor. My point is, your philosophical premise is flawed to start with, and so your conclusion must also be flawed.’

The professor’s face cannot hide his surprise this time. ‘Flawed? Can you explain how?’

‘You are working on the premise of duality,’ the student explains. ‘You argue that there is life and then there’s death; a good God and a bad God. You are viewing the concept of God as something finite, something we can measure. Sir, science can’t even explain a thought.’

‘It uses electricity and magnetism, but has never seen, much less fully understood either one. To view death as the opposite of life is to be ignorant of the fact that death cannot exist as a substantive thing. Death is not the opposite of life, just the absence of it.’

‘Now tell me, professor. Do you teach your students that they evolved from a monkey?’

‘If you are referring to the natural evolutionary process, young man, yes, of course I do.’

‘Have you ever observed evolution with your own eyes, sir?’

The professor begins to shake his head, still smiling, as he realizes where the argument is going. A very good semester, indeed..

‘Since no one has ever observed the process of evolution at work and cannot even prove that this process is an on-going endeavor, are you not teaching your opinion, sir? Are you now not a scientist, but a preacher?’

The class is in uproar. The student remains silent until the commotion has subsided.

‘To continue the point you were making earlier to the other student, let me give you an example of what I mean.’

The student looks around the room. ‘ Is there anyone in the class who has ever seen the professor’s brain?’ The class breaks out into laughter.

‘Is there anyone here who has ever heard the professor’s brain, felt the professor’s brain, touched or smelt the professor’s brain? No one appears to have done so. So, according to the established rules of empirical, stable, demonstrable protocol, science says that you have no brain, with all due respect, sir.’

‘So if science says you have no brain, how can we trust your lectures, sir?’

Now the room is silent. The professor just stares at the student, his face unreadable.

Finally, after what seems an eternity, the old man answers. ‘I guess you’ll have to take them on faith.’

‘Now, you accept that there is faith, and, in fact, faith exists with life,’ the student continues. ‘Now, sir, is there such a thing as evil?’

Now uncertain, the professor responds, ‘Of course, there is. We see it everyday It is in the daily example of man’s inhumanity to man. It is in the multitude of crime and violence everywhere in the world. These manifestations are nothing else but evil.’

To this the student replied, ‘Evil does not exist sir, or at least it does not exist unto itself. Evil is simply the absence of God. It is just like darkness and cold, a word that man has created to describe the absence of God. God did not create evil. Evil is the result of what happens when man does not have God’s love present in his heart. It’s like the cold that comes when there is no heat or the darkness that comes when there is no light.’

The professor sat down.

————————————
Happy Easter,

Byron

Security vs. Freedom

When embarking on any new venture, there is a level of uncertainty that comes with new territory.  We’re trained from early childhood to:

 1. Get good grades, so we can

2. Go to college, so we can

3. Get a good job, so we can

4. Have Security

The only problem is, this formula does not result in security.  It results in dependence on a company to take good care of you.  In my experience the company no longer takes good care of you — even when you do a good job.

So, what is this Freedom thing?

When you take responsibility for your own income and choose not to depend on the “safe secure job” that most people talk about, you gain the ability to determine for yourself the outcome of your efforts to a much larger degree.

One of the key problems to the Freedom thing is believing that it is possible to do it outside the “safe secure job.”

Here’s to believing that Freedom is one of your options!

Foreclosure – waiting for the axe to fall.

When I asked one of my contacts today what her plan is, she said, “I guess we’ll just stay here until they foreclose on us.”

I’m thinking this is not a great choice.

 On the other hand, when you have no job and no income, the thought of making additional changes is even more daunting.  Losing a job and having no income stream is dreadful enough.  Moving with no money could seem even worse.

What are the choices?

1.  Sell your house traditionally … but there probably isn’t enough time in most cases to wait for a conventional Real Estate buyer to close on your house.

2.  Sell your house to an investor … if you choose this route, you won’t be getting top dollar for the house, but you also will be able to respond more quickly and avoid foreclosure.

3. …?

I ask you dear reader, do you have additional suggestions that might help to resolve a problem when the homeowner has no income stream, and is already two months behind on their payments?

FEAR

F alse

E xpectations

A ppearing

R eal

What is FEAR?

 It’s the feeling in your gut that you’ve stepped into the unknown.

Is this a good thing, or bad? 

I’ve been stepping into the unknown for several years now.  I still struggle with the expectations of failure.  Will they happen?  Maybe, but if I focus on failure, it’s guaranteed to be the result.

What do you fear?  Losing a relationship?  Losing a friend?  Losing a job?

The feelings we have when we experience loss are very real.  Focusing on the feelings of FEAR makes us stop and return to our comfort zone at any cost.  Getting out of your comfort zone and making progress is essential.

If you keep doing what you’ve always done, you’ll always get what you’ve always gotten.

Progress depends on getting out of our comfort zone and pushing through FEAR.

FEAR:

F ailure to

E xperience

A nticipated

R ewards

Push through the FEAR to the rewards