Archive for October, 2006
Potential Mortgage Malpractice
October 23rd, 2006 Categories: Mortgage News
MEDICAL CARE - 76% of Americans do not believe that higher-priced doctors provide better medical care than lower-priced doctors (source: Kaiser Family Foundation). "I wonder how this same stat plays in the mortgage market."–Dan Green Read the rest of this entry »
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Short Selling the Market?
October 13th, 2006 Categories: Mortgage News, Real Estate News
With the advent of all the ‘Real Estate Investing Riches’ material comes a new type of ‘niche market’: Short Sale Investors. Anyone interested in ‘the big secret’ behind many of these popular and expensive seminars, books, CD’s, etc., this is the meat of it. There is much more detail involved, but is beyond the scope of this post.
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What if Starbucks was run by a Mortgage Broker?
October 11th, 2006 Categories: Mortgage News
Some things would be different, that’s for sure:
- There would be no prices on the menu.
- The exact same coffee drink sold out of the same location on the same day would be sold at different prices to different people.
- Employees would be trained and encouraged to maximize the gross profit on every cup of coffee sold by setting the price as high as possible for each customer.
- Employees would be incentivised to push the coffee that made them the most money, even if they knew the customer was allergic to it, enforcing a strict no refund policy.
- Coffees advertised as decaf would, in fact, pack more punch than a triple espesso.
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Go Vertical & Reap the Rewards
October 7th, 2006 Categories: Mortgage News, Real Estate Technology
Over the past few weeks I have really been into reading the BloodHound blog. The well-thought content contains some of the most progressive suggestions and alternatives to the traditional Realtor Agency models I have read. I understand this is a ‘mortgage blog’, but the parallels between Greg’s proposed reforms and The XBroker are strikingly similar. It’s as if our business fiber was cut from the same cloth, and delivered to two different but related industries.
Flat-fee for services does not need to mean ‘Discount Brokerage’, as long as the operator doesn’t discount their service or treat the consumer as a single ‘transaction’. With the advent of new communication technologies that immediately increase efficiencies and reduce cost, it has become more profitable from a % standpoint to do more business with more people for less money. It goes without saying that it is more profitable to make $20,000 from four clients in one month than $30,000 from one client over 60 days. Not to mention the additional value those four clients will refer your way and repeat business.
If more brokers would think in this ‘vertical’ mindset rather than ‘transactional’, the world would be a better place 
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The United States vs. National Association of Realtors
October 1st, 2006 Categories: Real Estate News
Couldn’t refuse the title. “DOJ Intent Leaks Ahead Of Meeting With NAR, DOJ Denies Leak” from The Realty Times reports. Things are not looking good when the Government is threatening your organization with an anti-trust suit. I don’t care if you’re innocent or guilty—you better have deep pockets.
Which brings me to Greg Swann (BloodHound) who makes a very compelling argument for two practical reforms that may address apparent NAR anti-trust practices, MLS disclosure issues, and “fair compensation for buyer representation.”
The Rain City Guide’s Ardell DellaLoggia has engaged Greg in a point- counterpoint thread stemming from the initial post. This is definitely an issue that deserves the attention of all professionals in the real estate services industry, as well as consumers.
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