When is it OK to “unload” on another agent?

I’m working on one of my last few sales, which carried over from 2009.  It’s a short sale with Chase Home Finance, and we’ve had really good response from the negotiator.  They have been patient with the transaction like I’ve never seen before from a negotiator.  They granted an extension after a request from the buyer for more time with their financing and clearing some conditions.  And, they even gave us more time when the buyer couldn’t meet that new expiration date.  But, we’re at the end of that timeline, and the negotiator told me today he just can’t keep the file open any longer, so at the end of today, the file is closed.  I don’t blame him; this can’t go on forever.

This leads me to the buyer’s side of this transaction.  Everyone on that side of the deal, starting with the buyer’s agent, on to the mortgage broker and then the funding lender, has been TERRIBLE about communication.  (I did get to speak with the broker for the buyer’s agent, and he’s at a loss for speaking with his own agent, too.  He apparently has given her an ultimatum over her professionalism.)  There seems to be a complete aversion to picking up the phone and returning a phone call.  Literally ALL communication has been handled through email.  I’ve even called them all to the table about not using the phone, but I get no response, as if they are ignoring it.  Ok, I get that some folks like to have everything in writing, so email may be a preferred method of doing things.  But, we’re talking about a transaction that has gone on and on for a couple extra months.  Each time I call to get a simple update on things, my call goes to voicemail and I get not much more than a short email with very little information.  Nothing of substance is to be seen.  The mortgage broker has gotten better with communication in the last couple of weeks, but we’ve still not received our clear-to-close.

Today, I decided to respond even more directly to an email from the buyer’s agent.  This was after I sent an email to her broker, earlier in the day, asking, “What the hell is going on with her!?!”  And, I had even left a voicemail message for the agent earlier in the day, specifically requesting a return phone call and not an email.  Here’s what I sent to the agent: “[Buyer’s Agent], bluntly speaking, why will you NOT call me?  I just don't understand how you can operate a business without speaking to the folks on the other side of the transaction.  Seriously, how about a professional courtesy of a frickin' phone call!!!!”  I doubt I’ll get any worthwhile response from that question, but I felt I needed to get that out there to her.

So, my question, when is it OK to unload on an agent for their continual lack of professionalism?  Some of you may say, “You gotta pick your battles,” which I’ve always thought implied a passive look at dealing (or not dealing) with certain issues.  But, I’ve recently come to the realization about myself that I really need to heed that advice in an active manner and truly “Pick my battles.”  There’s a scripture in Proverbs that says, “As iron sharpens iron, so one man sharpens another.” (Prov 27:17)  I gotta believe that we must pick our battles and fight for what’s right in our lives.  And, we can certainly apply that to real estate transactions!

I look forward to your comments and thoughts.

Thanks for reading!!

Eric M. Boyd, Realtor, e-Pro
Residential Sales and Property Management
Step One Realty http://StepOneRealty.com
cell: 904-813-5010 fax: 888-345-5054
mailto:EricBoyd@StepOneRealty.com

I resolve to sell no homes in 2010

That's right folks! You read that right. I resolve to sell no homes in the year 2010. And, I hope that I can make this resolution for each year after, too. Want to know how I can do this, and survive?

I'm building my property management business. In the latter part of 2009, I decided to focus my business efforts on my strengths, while best serving customers in need. I realized there is a segment of the real estate owner population in need of help in this economy. I came across many people who needed to sell their homes, whether due to financial hardship, job transfer, or family distress. These folks did not want to take the route of foreclosure or short sale, but couldn't sell their properties on the open market without doing so. They could not carry mortgage payments on more than one property, but could carry a partial payment, if they had help paying it. This is where I come in.

I offered them a solution of converting their residence to a rental property. I was able to get them a qualified tenant in a reasonable amount of time, in conjunction with their need to move out of their home. I walked them through the process of preparing their home for rent and shared with them the different processes we take to keep their property safe, secure, and in good condition. My owners felt comfortable in what we offered to do for them and their property, so that if they ever came back to live there, they knew there would be a home waiting for them. Other owners just wanted to know their investment wouldn't decline in value because of a lack of upkeep and attention. These were important things for them.

Because I am making this resolution, I am hopeful that I won't get distracted by the draw of a “big commission check” from a sale closing. (And, believe me, I have loved getting big checks from sales.) My strengths are not centered around sales, but rather offering resources to fix things. I'm more of a problem solver. I offer solutions when there seem to be no other. With property management, I have experience in solving problems, often those that no one else can solve. I, too, am a landlord and I can personally understand what issues landlords face, especially when it comes to tenant relations. I have resources for property maintenance and repairs, as these issues arise. And, I can get these things done much quicker than someone who is NOT a full-time property manager. This is my full-time gig, and I'm proud of it. It can get dirty and it can get ugly, but I'm the man for the job.

Some of you may say, “Hey, I'm a real estate agent, so I can manage property, too, right?” Well, yeah, you can manage rental property for your customers. But, I ask you this, “At whose expense, and for whose benefit?” Are you truly equipped for handle the day-in/day-out challenges involved with managing rental property? Do you know what to do with a security deposit when you receive it? Do you know who to call when a tenant gets locked out of their house? What happens if there's a fire at the property? What then? What accounting systems do you have in place to provide regular statements to your owners, so they can know where their money goes each month? Are you sure you know what you're doing as a property manager? Or, are you just looking for a side gig to supplement your income when sales are slow? Please think about that.

Let's have a GREAT 2010, consider the interests of others before ourselves, and offer up our STRENGTHS for the benefit of our customers.

Thanks for reading!

Eric M. Boyd, Realtor
Property Manager
Step One Realty, LLC
Jacksonville, FL
EricBoyd@StepOneRealty.com
www.StepOneRealty.com

Renters Beware!  Avoid Scams and Fraud by Dealing Locally!

With the rise in people, nationwide, losing their homes to foreclosure, renting a home is the next step for housing their family.  This is a great decision because rent prices have dropped several hundred dollars per month in the past 2-3 years.  So, it can be a much cheaper alternative than owning, and the lower rent price will allow folks with financial hardships to live a little easier until they can get on their feet again.

Well, unfortunately, scammers are waiting for you, and will take advantage of you.  If you are using Craigslist or some other “publicly available” website for searching for rental property, you have more than likely run across a scam ad for a rental property.  And, you may not even have known it.  Being that I post my rental listings on Craigslist, I get calls all the time from tenant prospects asking about them.  A few times, I’ve met them at the house and we discuss the terms.  Then, they say something along the lines of, “So, is the rent really only $600 per month?”  I quickly respond with, “Uh, no sir, it is actually $995.  Where did you see the $600 price?”  Long story short, they saw an ad on Craigslist with my property’s picture and a description matching the house, but for a price NOT at what I advertised it.  I confirmed this.

What the scammers are doing is taking a legitimate ad, “borrowing” the photos, copying the description nearly verbatim, and making their own ad at a price that’s a couple hundred dollars lower than my market price rental.  Sometimes, they’ll even go as far as cross-referencing the property address with the tax rolls, in order to obtain the owner’s name.  They will use that information to create a fake email address, usually containing the owner’s name, and publicly post that in the ad, to create the illusion of legitimacy.  It’s pretty convincing.

In my title, I borrowed a phrase from the Craigslist warning: “Avoid scams and fraud by dealing locally”.  That warning goes further to say that rental prospects should take caution to only work with landlords or property management companies who are able to meet you at the property and, of course, give you access to the property.  You should also take the time to drive by the property prior to making any contact with the “owner”, to see if there is a sign in the yard or a lockbox on the front door.  If the contact information in the ad is in conflict with what’s on the property, then you may be facing a scam.  If the “owner” can only communicate through email and/or phone, and they insist on you paying them via Money Gram, Western Union, wire transfer, or other electronic means, then you are more than likely being setup for a scam.  There is no way to get your money back, if you fall for this.

The "owner" will have a pretty good story, too.  It may be that they are a missionary family and they are in West Africa.  They'll have photos of their family, kids included, and their story will be very touching.  It could be that they took a job transfer to England, but didn't have the time to get it rented prior to leaving.  Then, it's been vacant for several months, so they just need to get it rented and that's why the price is so low.  To the unsuspecting renter, these are all really good and convincing stories.  But, it's a SCAM!!

In my opinion, it’s best for you, as a rental customer, to ONLY work with a local Property Management Company.  We are licensed professionals, and we are able to confirm the legitimacy of the properties we are renting.  We keep track of the rental ads we place, so we know what’s accurate and what market rent prices are.  Personally, I check on my Craigslist ads, to make sure they aren’t being scraped and used for scams.  Unfortunately, it’s up to the Craigslist staff to remove these ads, once we “flag” them, and they are less than prompt at doing this.  I flagged a scam ad over a week ago, and it’s still there.  But, now that I know it’s there, I always ask callers about which ad they saw, so they know which ad is accurate.

The old adage is in full effect with this affair:  If it seems too good to be true, then it probably is.  Renters, don’t let yourself be scammed.  Make it a point to work only with licensed real estate agents and property managers when searching for rental property.  Not doing so could cost you hundreds of dollars, which could be used for more important things, like, RENT.

Thanks for reading...

Eric M. Boyd, Realtor, e-PRO
Step One Realty...A Jacksonville Property Management Company
Jacksonville, Florida
cell: 904-813-5010 fax: 888-345-5054
http://www.StepOneRealty.com
mailto:EricBoyd@StepOneRealty.com

We're definitely seeing a drop in rental prices in our area.  It's important for landlords/owners to realize that a price adjustment for their vacant rental property is a must, in order to obtain a tenant.  Of course, as I've stated in the past, it's still very important to properly screen tenants for credit worthiness and their ability to pay rent.

Property Managers and Landlords:

Do you ever get those phone calls from tenant prospects that just seem to go on and on and on...?  Usually, it starts out OK.  They ask a few questions, the normal ones.  How many beds, baths, pets OK, and the rent price?  And, you provide quick, concise answers.  Then, they start talking about their "situation".  This is when they get going, "OK, my credit might have a few issues because of a bankruptcy 2 years ago because of a marriage gone bad and he cheated on me with my best friend so I had to go into a bunch of debt because he started charging all sorts of crazy stuff on the joint credit cards we had oh and I have some student loans which might be overdue a few months and probably some medical debt, too.  Is that gonna be a problem?"

OK, maybe that's a bit of an exaggeration, but I think y'all know what I'm talking about.  While I do appreciate the openness and honesty from a prospect, when the sentences become more than a few, my first thought is, "OK, I think I'll just go ahead and Deny your application, before you've even submitted it."  I really don't like to judge folks, as I'm generally a trusting person.  But, one thing I've learned in my few short years of this is that I can NOT be too trusting.  Career Tenants will pick up on that in a heartbeat, and will work it as long as you allow it to happen.  If you accept their "excuses" now, you're stepping into a pattern of behavior and acceptance that can be difficult to escape.  Do NOT let yourself go there!

When you're faced with this type of situation, do your best to avoid going any further with it.  Refer the tenant prospect to your established rental applicant guidelines.  I have our application posted on our brokerage website.  If they ask me what my guidelines are, instead of telling them what they are, I still send them to the website, or offer to fax or email it to them.  I know the guidelines, but I would rather the prospect read it for themselves, and have it laid before them, in writing.  After reading the guidelines, if they decide to submit an application, then you'll get to see with your own eyes what all their words were about.  If they meet your guidelines, and you can approve their application for rental, you've at least been given some foresight into the possible character of the tenant. 

As to the title of this blog, I credit Proverbs 10:19, which says, "When words are many, sin is not absent, but he who holds his tongue is wise."  As Property Managers and Landlords, whether you like it or not, we ARE in the people business.  To be successful, we need to be able to see a good deal into the way people communicate and the reason they do it the way they do.  This is certainly not to suggest that just because a prospect is "plentiful with words" that they will be bad tenants, because that's just not the case.  But, my point is that if they are making excuses now, then you're likely to hear excuses during their tenancy.  Listen to what they are saying, and take note so that you're better equipped to deal with them, if you choose to rent your property to them.  In a lot of ways, it's easier to deal with the person who "holds his tongue", because you're nearly guaranteed to only have to work with the facts.  No excuses, no drama, no emotion.  Landlord: "Hey, you're rent is late."  Tenant: "Sorry, I'll have it on Monday, with the late charge included."  Ha!  If only it were that simple, but I hope you understand my point.  Know who you're dealing with, and handle them properly.

Thanks for reading…

Eric M. Boyd, Property Manager
Realtor, e-PRO
Step One Realty, LLC
Jacksonville, FL
www.StepOneRealty.com

Well, the first day of school has come and gone.  We faced the slow traffic, en route.  We stood in line to get inside the school, stopping along the way for a few photo opportunities. We walked down the wrong hallway, but eventually found your kindergarten classroom.  Your friendly teacher met us at the door, helped place your backpack in your cubby, and showed you to your seat.  She then gently scooted Daddy out the door, to send him to the “Boo-hoo Breakfast” (for the parent’s first day of school).  Well, Daddy didn’t really cry, but did try to find the free breakfast treats.  I was unsuccessful. (I almost cried over that.) 

It was a long day without Daddy’s first-born, and I thought about her throughout the day.  The time passed by, though, and I eagerly traveled to pick you up, and once again endured the even slower traffic.  You got in the truck, and were happy, but understandably tired.  Daddy’s barrage of questions was only answered with simple Yes’s and No’s.  I didn’t press you, though.  It was your first day of school.  You may not be able to express it, but I’m sure you were a little overwhelmed.

So, the second day of school arrives.  Daddy loads you and your sister in the truck, and we head down the road.  Much less traffic today!  We drive down the car lane, and drop you off.  Daddy noticed there weren’t very many teachers around, but plenty of older students.  I said, “If you need help, just ask someone.”  You get out, without question, and head on your way.  Daddy pulls away, and heads back home.  But, as I drive away, I begin to feel that I’ve done something wrong.  For the first 2 minutes down the road, the thought nagged at me.  What did I do wrong?

In the real estate profession, whether it’s sales or property management, we spend an enormous amount of time and energy to locate customers.  Many times, we find those customers to be very new and uninformed about what we can do for them, and what lies ahead.  For me, it’s too easy to just take control of the task at hand and do what I do best.  I may say to them, “I’ll take it from here,” or, “I’ll let you know if I need anything,” or, “See you at the closing table!”  (I’ve never actually said that last one, but you get the point, right?)  Then, I continue on, to work tirelessly in order to reach the final destination, which comes in the form of either a property listing or a property management agreement, and its eventual sale or rental.

For some customers that’s fine, but for the newbie, it can have a devastating effect.  They need to be taught what’s in store for them.  They should be able to understand, to a good degree, what the process entails and what direction they should expect to be heading, even if I’m the one handling the process.  While I am the professional, the one with the license, and the one with more experience than they have, I can’t just leave them there without some direction or expectation of the coming events.  I must show them and explain to them what’s going to happen next.  I need to set reasonable expectations for them.

As I’m writing this, I realize I could exchange the word “customer” with “new agent”, and many of the same thoughts could be applied.  There’s probably a new agent in your office, still slowly getting his or her feet wet.  I’m certain he feels very insecure about his slow growth and lack of direction.  It can’t feel good. 

It’s situations like these which make me feel a little like I did this morning, when I dropped off my daughter at school.  What did I do?

After a 1-mile drive away from the school, I turned around.  I drove back to the school and went inside.  I stopped at the “check-in” desk, and was asked why I was coming into the school building.  (They require you to get a pass and sign-in).  I confessed to the assistant that I dropped off my 5-year-old at school, and just left her to find her own way.  I wanted to come back, to make sure she found the way to where she was supposed to go.  The assistant smiled and pointed me in the direction I should be headed.  When I got there, I arrived at the gathering room and found her, sitting in line with the rest of her classmates, ready to head to her classroom for the day.  I walked over to her, and apologized for leaving her there, not telling her which way to go.  I asked if I made her sad, and she said that I did, and that she cried a little bit.  She then said that a “big girl” helped her find her way. (It’s a K-thru-5 school).  Boy, did I feel terrible; still do.  I apologized again, and went on my way, kissing her as I left.

So, that was a short lesson for me in responsibility and looking after those with less experience and direction than I have been given.  It’s something I should never forget.  For the rest of the week, I’ll be walking my daughter into the school.  I intend to show her the path from the car rider drop-off, all the way to the gathering room.  We’ll also walk from the bus drop-off to the gathering room.  She needs to be taught, and I’m the one to do it.

Thanks for reading…

Eric M. Boyd
Realtor, e-PRO
Step One Realty, LLC
Jacksonville, FL
www.StepOneRealty.com

You may be desperate, but don’t let “Cash in hand” distract you.

I got a call on one of my vacant, available rentals today.  The caller drove by the property, saw the sign, and called.  They wanted to see it “right now”.  I told them I couldn’t get over there to show it until 4pm, as I have other engagements until then.  They said, “Well, we’re headed back to South Carolina to take care of some business so that wouldn’t work.”  I apologized, and encouraged them to take a look around the outside and peek in the windows.

A few minutes later, the caller’s wife called and said they like it, and asked what they need to do to rent the property.  I said that I could give them an application for them to complete.  Then, I would conduct credit and background checks, and employment and rental verification.  She quipped that they didn’t have a previous landlord, since they own their house in SC.  She then said, they were trying to get this done today, so they can go back to SC.  They wanted to get this done before school starts, so they can get their kids registered.  She said, “We have cash in hand, and are ready to get this done

I politely responded to her, and let her know that we don’t rush our tenant screening process.  I stated that it is our duty to the property owner to ensure that tenants are properly screened, with thorough credit and background checks, and employment and income verifications.  I shared that it has been our experience that taking shortcuts in the screening process leads to problems with tenancy, down the road.  So, we avoid those shortcuts, at every opportunity.  She thanked me, and we ended the call.

In today’s housing market, there seems to be surplus of rental property.  Because of this, it is taking much longer to get property rented.  And, if you’re properly screening your tenants, it could take even longer to get it rented.  So, desperation may set in.  If you feel like you’re getting desperate, don’t let “Cash in hand” distract you from doing your due diligence.  If you do take this shortcut, the upfront money you get, could cost you double or triple that amount down the road.  This cost could come in the way of lost rent, or even worse, damages to your property.

The caller said they own a house in South Carolina, but they’re trying to rent here in Jacksonville, Florida, 4-5 hours away.  If they have a house in SC, why are they moving here, and what are they going to do with the house in SC?  If I didn’t screen them, I wouldn’t find out if they have a mortgage on that house, which probably requires monthly payments.  Sure, they may have the means to cover a mortgage payment and a rent payment somewhere else.  But, if I didn’t screen them, then how will I be able to determine their income?  How will I know if they’re 6 months behind on their mortgage?  How will I know if they just filed bankruptcy?  How will I know if they’re bouncing $30 checks at the grocery store?  If I don’t screen them, I won’t know these things.

I’m generally trusting of people.  But, having been through the tenant screening process many times, I realize that people DO TELL LIES.  Fortunately, we landlords and property managers don’t have to fall victim to these lies.  Professional property managers have access to tenant screening services, which reveal the truth about tenant applicants’ credit history, debt status, and civil/criminal judgments.  Property managers can also verify applicants’ employment and rental history.  This information, combined with careful analysis of the provided data can help to place the best possible tenant in your rental property.

In summary, don’t succumb to desperation.  Don’t allow a tenant prospect to force you to alter your normal screening processes.  Don’t let the chance at “cash in hand” to steer you from your due diligence.  SCREEN THOSE TENANTS!!

Eric M. Boyd
Realtor, e-PRO
Step One Realty, LLC
Jacksonville, FL
www.StepOneRealty.com