All Forum Posts by: Rich Rifkin

Companies like GMAC, Southeby's, Home Depot, Lowes, etc. are moving towards adding more services to their business model.

For example, the CEO of a GMAC company in Central Florida was recently quoted in an article that the future of the industry is in multi-services, which he defines as Real Estate, Mortgage, Construction and Title services.

Does anybody know of other companies who are doing this?

I cannot emphasise enough how important this subject is. Effective marketing brings customers to you - when you get them to come to you the result is a home field advantage.

Customers are the key to success. You can have the best location, lowest commission/closing costs, management, financial backing, reputation, etc., but without customers you're not going to do very well.

I do not recommend lowering your commission. The common misconception is that it will bring you referral business. Aside from the fact that you will make less on the transaction, the customer will likely step on you a bit more than if you had taken control of the situation from the start - and the foundation of this relationship is being paid for a service.

Perhaps subconsciously, a customer feels that if you are willing to take less from them then you are willing to promote them taking less from the buyer. For example, do you expect more from an attorney charging you $400/hr versus and attorney who's charging only $175/hr? Not only do you expect more but you also delegate more control to the more expensive attorney.

The home field advantage is extremely important - ie. take control. You are the professional and they are the customer - defining these roles from the beginning sets you apart and chances are you'll get more customers using this approach.

#1: Spend a great amount of money on a website. Do it right!
#2: Business cards: They should be high gloss and double sided. Your title is not important but you should have logo for affiliation, award or designation.
#3: Folders, fliers, brochures: If they are well-done and consistent in quality, look and feel with your website and business card, it will demonstrate to your client how you will market them. If you market yourself impressively you will send the right message to the customer.
#4: Confidence NOT arrogance. Truth be told, I rarely listen to what my customer has to say. Rather, I tell them what I can and will do for them IF they become my customer. Your resume is important and get it out of the way early, but don't impose yourself too much.

I have been listed in the Nation's to 200 closers for 4 consecutive years, have created more than $4B in yearly mtg and RE sales, held seminars (not any longer) for effective salesmanship, and been a personal as well as corporate business coach. Advice is only as good as the person who gives it. In today's market you have to have an edge, and even if you do not have #1 through #4 above ...

Your best marketing tool is yourself. State your goals to your clients and be aggressive.

Hi Tim,

Can you give me some company names and/or website addresses for these companies?
Thanks!

I'm a developer. I own an Architect firm as well as a mortgage company and Real Estate company. Companies like this are brilliant and accel in a good market, but it's the market's fault (hem-hem) when they lose.

The bottom line folks is that the "get rich in Real Estate" business model has finally burst. It's not the American way to get rich easy; rather, it's entirely American to get rich with good old fashioned hard work. THAT is still possible.

I wish all of you great financial success. Don't blame others or be sour if and when your investments lose - that's part of a learning curve that ultimately makes you stronger.

I know it sucks but there's really nobody to pin it on. Unfortunately, current market conditions are the result of false stimulation of the economy through lowering rates. Why is lowering rates so important? Because propery values have "appeared" to appreciate at a ridiculous rate over the last 10 years.

In other words, a lower loan amount with a higher rate is mathematically equal to a higher loan amount at a lower rate. The difference is gain in equity. The problem therein occurs with cashing out of equity and reinvesting this "false income" (passive, and non-taxable with the right CPA) is controlled by inexperienced investors. How many investors were geniuses when the market was good yet are "victims" now that the market is bad?

Moreover, the rules of the game have changed but only the real players adapt.

I do not recommend keeping stock that consistently goes down in price/value. I suggest minimizing all depreciating items (such as cars, boats, etc). We are in a recession and the equity you have in your home today will decrease tomorrow. It's like a non-interest bearing escrow account with accruing charges and fees.

I've owned more than 90 properties and built/developed more than 1,000 properties and large parcels, and I've owned a construction, Architecture, Mortgage and Real Estate company(ies) for 18 years. Believe me when I tell you to invest in something that makes sense. If your home is upside down (or close to it), make the difficult decision. These days rent is much less than mortgage payments, taxes and insurance (although you should keep renter's insurance).

I don't recommend Craigslist and Ebay is a cheezy way to promote your contractor services. I've used and recommend the following:

Reliableremodeler.com
servicemagic.com
Renovationexperts.com
Bidclerk.com
Calfinder.com

If you know how to bid (and not underbid) and present yourself professionally with knowledge and confidence, you can generate all the business you want from these sites. Be prepared to pay about $50/lead regardless of whether you win the job. You will have to meet many potential customers and at first your close ratio will probably be pretty low. I strongly recommend you prepare yourself to invest a couple thousand into marketing material and leads.

Go get 'em and make a million!

Rich

I'm new to BiggerPockets and find the site vast with tremendous interconnectivity for RE enthusiasts - from new to highly experienced. When I entered my family's industry in 1990 (we've been in business since the 1800's) I wished I had such a resource.

Excellent job, BP!

My prime goal here is to raise capital for New Home, Inc through offering equity in the Company. Our Company is insulated from a negative RE economy and actually accelerates profit inversely as the market declines. We are a unique one-stop-shop consolidating Architecture/engineering, Construction, Financing and Real Estate in a showroom environment.

I am happy to answer any questions you may have and look forward to speaking and meeting with you.

Rich Rifkin, CEO

The buzzword is recession and everybody should be worried. I've been in the industry since 1990 and my family's RE business goes back to the late 1800's and we all agree that there's no near future relief from a deep and dark RE recession.

The problem started in 1994 ...

In 1994 we experienced an increase in retail mortgage rates of about 1.875% (to the rate, not basis points) in just 6 weeks which caused a mass exodus of newbies into the wholesale marketplace. This was the only place where salaries were offered (instead of commission positions) and people were willing to work for less than highly experienced sr. underwriters, top tier account execs, etc. Moreover, QC (quality control) became so flexible that a new and more consistent underwriting system had to be introduced - and it didn't take long for make-sense underwriting to be replaced with automated UW (Fannie/Freddie and then jumbo).

This evolution continued upwards through portfolio and servicing investors (above wholesale) into securitization, and that lead to programs with higher LTVs, lower qualification (remember 28/36 ratios?) and negative amortization programs. The only logically predicted result was rapid escalation of RE equity (inflation of RE value), which is fine as long as incomes increase at the same rate. In other words, a $100k home in 1995 that is worth $500k in 2008 would require an income of $180k instead of only $30k. We all know income hasn't even come close to meeting the qualifying need.

So there you have it. The reason the gov't hasn't found anyone to blame is because there is nobody to blame. In retrospect I would have preferred slower and more controlled growth rather than a steep climb to an expeditious fall.