Category Archives: Marketing / Communication

“Kiddie” Condos–They make more sense than ever in this Market

Condominium, Marketing / Communication, , , ,

I have written about “kids at school” in prior posts. With more kids at college and grad school (grad school, especially grad school, because jobs our of college are becoming so scarce), there are some strategies we can suggest for “kiddie” condos which may produce some sales for realtors, mortgage originators and real estate attorneys (my defined group “The Resource Triangle”.

These are my thoughts:

      1. Price of Condominiums are lower than they have been. Certain areas of Boston have held up better than others; in general the market is soft, especially in the $200,000 to $400,000 range.

      2. Rental prices are increasing because people have to live somewhere, and they are not buying as rapidly as they did. The rental population is on the increase, as well.

      3. There are some distinct tax strategies which make a parent’s purchasing a condominium for his or her child during the time that the child is a student:

          a. After tax benefits, the actual cost may be lower than rental.

          b. At some point in time, the parent can make the child the owner of the Unit, thus entitling the child to take advantage of the $250,000 exclusion when the Unit is sold. In Boston (and other cities, I am assuming), owners who live at the premises are also entitled to favorable real estate tax treatment.

          c. If we are at the bottomo of the real estate cycle, or close to the bottom, the appreciation in the Unit can be passed on to the child, rather than the parent. That becomes a handy way to handle estate planning transfer for the parent.

          d. In Boston, I am aware of several Lenders who have developed “Kiddie” Condo programs. Wainwright Bank, a Lender for whom I do a lot of work and an ActiveRain member, has such a program.

If your customers need any further advice about Kiddie condos, have them contact me directly. I have completed at least fifty (50) of thes e deals in the past three years, all of which have worked to the Parent’s advantage.

System “5/25”—A Proven Way to stay in touch with your Players

Customer Service, Marketing / Communication, , , ,

Over the years, it has become more and more apparent to me that sales involves connecting with people who know, and appreciate, what I have to offer, not at my convenience, but, realistically, at theirs. One way I have found to stay in touch with these important contacts is to utilize the “5/25 System” on a consistent basis.

The System is simple. Pick out your 5 most important clients, or customers, and put them on a schedule. Then, analyze the rest of the important people in your business and pare that list down to 25 people. Obviously, the list of 30, as I call it, can change on a dime. The best way for it to change is for some new player to arrive on the scene to supplant someone else, who is marginal. The worst way your list can change is for a “favored 30” player and you to have a falling out, or disagreement, which makes continued contact with that person difficult, or maybe even impossible. If the latter happens, be decisive!!!! Excise that person from the list and find an acceptable substitute.

     1. The “Favored Five”.  You need to get yourself in front of the favored five at least once a week. Since these people are so important, it probably makes sense to vary your contact. Some weeks it may be a long email or a meeting for a cup of coffee. Other weeks you might invite them to a play or ball game. Whatever the excuse, you MUST be in front of these five people every week, without fail. At some point, your “Favored Five” are going to see what you are doing. None of mine have every held against me my elevating them to this favored status. Most understand that I am making a commitment to ============-][frequent communication with them so I can acknowledge how important they are to me practice.

     2. The “Terrific Twenty-five”.  These people are very important to me, but they have not achieved “Favored Five” status. In time, they may reach that level. For the time being, the “Terrific Twenty-five” need to be contacted at least once a month. Obviously, you can get with them more than that, but under no circumstances, should you let a month go by without an email, telephone call, visit at their office, or other contact. You need to stay on the “Terrific Twenty-five” radar screen. You do not need to make them a weekly contact, but they need to know that you are “around” and you care.

The results of this rathered structured approach have been impressive for me. My “Favored Five” people have generally been the ones who respond to new initiatives and proposals. When I am in front of them, they “remember” things which they wanted to discuss with me and thus new opportunities arise. The “Terrific Twenty-five” are in a slightly different category. They have not lost touch with me, but I am not a constant part of their business life, in most circumstances. That can sometimes be a good thing. Sometimes, the “Terrifics” want to change their role. Many times this is justified. The group of thirty is not static; you will see changes evolve as you move ahead.

There is nothing mystical about the 5 and 25 numerical selections. What is important is that you identify your “real players” and your “might be real players” as soon as possible, and then make sure you find ways to have continuing interaction with them. For me, this has been an incredible “practice builder” and also a way for me to develop lifetime friendships. What is better than those two results?

The Resource Triangle–“Three” who can make it Happen

Marketing / Communication, Uncategorized, , , ,

As I have evolved from an attorney who sat in my office and waited for the phone to ring into a realist who started to understand that marketing is an essential part of doing business, one thing became clearer and clearer. My best efforts involved finding motivated and talented realtors and mortgage originators with whom I could work on a regular basis.

This “Resource Triangle”, as I like to call it, makes perfect sense. All three professionals involved have one goal in mind, the successful closing of a residential real estate closing. All three have something else in common: if the transaction does not close, none of us gets paid. So if a realtor in one of my Triangles calls me up late on a Saturday afternoon and tells me she or he has a Buyer who is leaving town this evening, can I come by and introduce myself, I need to appear even if it means my Saturday night plans are delayed, or even cancelled. The same availability is required from the mortgage professional. If we are going to be “Resources” and part of the Triangle, we need to be there, any time, any place.

Once the Triangle is established, it can work to everyone’s advantage. The reliability component is huge. When I tell my realtor-partner, I can turn the Purchaser and Sale around in no longer than 48 hours, and I DELIVER on my promise, he or she knows that the chances of the deal coming together are increasing at a rapid pace, and what may have looked like “bragging” was only describing a standard that he or she knew could be achieved. When the mortgage originator promises a full-blown mortgage commitment in fourteen (14) business days, AND DELIVERS, comfort and credibility abound. When I promise a client who owns a home, and is buying another, that my realtor-partner can get their present residence sold in less than a month, AND DELIVERS, I look good, my realtor-partner looks good, and the magic word “closing” is that much closer.

I have been fortunate in that I have developed several unique Triangles in my practice, the difference in make up and composition being a function of the clients I am working with and geographic compatibility. The networking groups I am involved with, such as BNI, are a natural source for Triangles.

Most of the people reading this post are Triangle-eligible. They fit into one of the three (3) categories described.  I urge each and every one of you to get your Triangles in motion at the earliest possible opprotunity. The confidence in referring your most trusted clients and customers to people who have time and again DELIVERED can make all the difference for you. You will no longer be a face in the crowd. You will be the one person who can make the deal happen

Marketing 101–The Notebook

closing, Marketing / Communication, , , , , , , , , , ,

At residential real estate closings which I conduct, my main goal is always to gain the trust of the people buying their home or condominium unit. I generally do this by spending as much time as the purchaser wishes going over the HUD-1 Settlement Statement and the accompanying closing documents, like the mortgage promissory note and the mortgage, itself. There is usually a point where the purchasers start to believe that I am a decent guy who is not trying to do anything but help them buy the home they have searched for, and wanted, for a long, long time. They are prepared to listen to me, as the closing attorney, for advice for the future.  

You, as the real estate professional, are almost always in attendance at the closing, if you are thinking correctly, because not only is this a time to receive your well-earned commission, it is also a time to participate with your customer in a positive experience with the thought that you will have earned the chance to work for the purchaser, and perhaps friends and relatives of the purchaser, in future real estate experiences. Together, you and I (if I am fortunate enough to be working with you on this transaction) can make suggestions to the buyer which will put real estate professionals, but more importantly, you, in an extremely favorable position. 

Some realtors make gifts to the buyers of a bottle of wine, or a door knocker, or a framed picture of the home they have purchased. May I respectfully suggest a different approach? May I suggest that you deliver a large three (3) ring binder, with your name and pertinent contact information included therein, and perhaps the property address placed on the outside thereof?  

This gift, you inform the purchaser, is for them to create a working history of their home. I provide the first document, an 8 and one-half by 11 reduction of their fully signed HUD-1 Settlement Statement. I suggest that they take the original HUD-1 and place it in their safe deposit box. I then advise them to copy the Owner’s Policy of Title Insurance which I will be sending them and place that document in the binder as well. 

You can then suggest that the purchasers make a copy of every invoice related to their new home and insert the copy in the binder. This includes purchases of new appliances or fixtures, and also expenses of plumbers, electricians and other artisans who have done work on the new home. A few of my creative realtors have included tabs in the binder to provide information on local contractors whom the realtor has found reliable. In effect, they have developed their own “Angie’s List” for their customer, no doubt endearing themselves to the contractors who are getting new customers because you have included them in the binder. There may even be the possibility of having these contractors furnish money-saving “coupons” which you can include in the binder. 

If the purchasers take seriously the suggestions we have made, and use the loose leaf binder you have presented, the following positive results will almost surely follow: 

  •  
    1. Future Marketing of the Home

 At some point, your purchaser will become a seller. The completed loose-leaf binder becomes a powerful marketing tool for you when you list, and show, the home. You do not have to tell the prospective buyer that the washer and dryer are new. You have the actual invoice for the purchase. You can demonstrate when the floors were sanded, and by whom. You can also deliver any existing warranties for work on the home or fixtures and appliances. Your presentation is “buttoned-up” and it will be impressive.

  •      2.  Tax Implications.

    • In the current tax picture, it is not important to have good basis information for a residential home that is being sold. Given the uncertain economic climate we are in at present, this could change. The information in the binder permits the purchasers to collective complete basis information which can be given to their tax accountant or used by themselves (if they prepare their own taxes) when they sell their home. 

    3.  Retrieval of Important Information.

    The invoices and statements in the binder contain information which can be useful in the future. Perhaps, owners want to redo their floors after three or four years. The archived invoice will provide information as to how to contact the contractor who did the work. If any vital information is missing on the invoice, the owner can include same before inserting it into the binder. 

    4. Emotional Benefit

    As all of you know, a home is more than brick and mortar. It becomes a personal statement for the owners as to the owner’s creativity and responsibility. Having a complete loose-leaf binder demonstrates to the owners that they have really made the home better. There is a feeling of achievement about their home which becomes a source of pride. You can convey that positive spin when you market the home on the owners’ behalf. 

    As I have indicated, I have been suggesting, and using, this technique for many of the more than 40 years I have been practicing real estate law. I am convinced that it works. On the other hand, even good ideas can be improved. I would welcome comments from you as to how the loose-leaf binder approach could be improved or amplified Email me at etopkins@topbev.com if you wish to begin a personal dialogue. Please visit my blog at http://realtorsresourceblog.com/

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