Flashback Friday: Flea Circus

‘How do you train them not to jump?’

‘For two months I keep them in a low jar.’ He reached behind him and retrieved a little screw-top container, about an inch and a half tall. ‘At first they jump and jump in there. I can hear them bang their little heads on the lid, bing, bing, bing. But after awhile they adjust. They still hop, a little; they just don’t leap. That’s when I take the lid off and they are ready to train for the circus . . . they’re not going to leap away.’

This is one of my favorite posts.  It originally appeared in early 2010.  I have more to say about it, but don’t want to spoil it for you , so I’ll save it ’til the end . . . 

I live 22 miles from the Mexican border and, like many Southern Californians, spend a lot of time in Baja.  One of my favorite drives is the Routa Del Vina — the wine route — that runs from Tecate in the North to Ensenada in the South.  This sixty mile stretch of highway winds first through mountains and then through dozens of Mexican wineries.  Yes, Mexico makes wine.  It’s generally not very good, but they’re working on it.

In the heart of the region, a dirt road takes off to the west from the highway and leads to a dusty little town called Ejido El Porvenir — Town of the Future.   It may have been the Town of the Future in about 1924, but nothing much has changed since then.  It’s mostly just dust and mud, dogs and farmers and tumble down houses, a small, humble church . . . and Beto’s Circo de las Pulgas — Beto’s Flea Circus.

Beto is a weathered old dude who, like everything in Ejido El Porvenir, is dusty.  He’s missing a few teeth but still manages a nice smile when guests stop by. For $4 US, he will lead you through the little house he shares with his granddaughter and her children to the workshop in back where he keeps his Circus.

The show is presented on the bottom of  a 2′ x 3′ corrugated cardboard box with the sides cut down to about an inch that he pulls from a shelf and sets on a rickety table in the middle of the dirt floor room.  He’s painted the box white — well, it was white, once —  and it functions as the stage for his little flea actors.  He’s got one that walks the tight rope, a few that will kick a tiny ball around, one that rides on the back of a green beetle, and three he harnesses to little carts and then implores to race from one side of the box to the other.  It’s both as silly and fascinating as you might imagine.

After the show, I sat a while, chatting with Beto, he using very bad English, me struggling through equally bad Spanish.  I learned he’s 73, been working with fleas for about 10 years, and took it up to pass the time after he became too old to be useful in the grape arbors.  He gets three or four paying visitors a week but also does free shows for the neighborhood kids who regard him as a funny kook.

‘So, how do you train fleas?’ I asked.

‘Es Facil,’ he replied; it’s easy.  ‘The hardest part is teaching them not to jump.  A flea can jump two, three feet normally.’

I pictured the house I listed 30 years ago in Atlanta.  It had just been vacated by tenants who had dogs and when I walked into the living room, I was bombarded by a hail of hungry fleas flinging themselves at me from the floor. Yes, fleas have very strong legs and they certainly can leap.  Why didn’t these fleas just leap away?

‘How do you do it?’ I asked, ‘How do you train them not to jump?’

‘For two months I keep them in a low jar.’  He reached behind him and retrieved a little screw-top container, about an inch and a half tall.  ‘At first they jump and jump in there.  I can hear them bang their little heads on the lid, bing, bing, bing.  But after awhile they adjust.  They still hop, a little;  they just don’t leap.  That’s when I take the lid off and they are ready to train for the circus . . . they’re not going to leap away.’

‘Wait a minute,’ I asked, skeptically, ‘You train their natural tendency to leap out of them?’

‘Sure,’ he said through that almost toothless smile.  ‘After a few weeks of hitting their heads on the lid, they learn to stop jumping, and they’ll never do it again.’

How  sad, I thought.  These creatures were born to leap and they’d allowed him to take that away from them.  I gave him a puzzled look.

‘It’s just like people,’ he continued.  ‘You can train the dreams right out of the people.  If you place enough barriers, enough restrictions, they come to believe their dreams are impossible.  They give up, and then they live quietly in the world you’ve defined for them.  Every dictator knows that . . . I’m just a flea dictator.’

It started to rain as I left Beto’s house.  The  dusty road turned into a mud bog and soon the Jeep was covered in the stuff.  I’d be bringing a little bit of Mexico back across the border with me this night.  As I drove through the gloom, I thought about what Beto said, and about our current reality:  Help-U-Sell, Realtors in general, and the very tough real estate market of the last few years.  We all made adjustments to make it through. We cut expenses, moved to smaller space, consolidated.  They were necessary cuts.  But, like the fleas, we also cut expectations.  Where we once shot for 10% market share and considered 10 deals a month to be ‘just getting by,’  we came to believe that 2 or 3 or 4 a month was ok.  We could get by with 3 or 4 and not bang our heads on the lid of the market.

Look around.  Yes, things are better today.  The real estate business comes with a new set of challenges – low inventory, rising interest rates – but it’s not as constricted as it was a couple of years ago.

But what about that patch of real estate between your ears?  Did you get so used to the redecorating you did in there during the downturn that you hardly notice the change anymore?   Have you let last season’s reality put a permanent damper on your dreams?  Or can you still see yourself doing 100, 150, 500 deals a year?  You can, you know.  Step by step, stage by stage, phase by phase, you can.  And, truth is, until you believe it, until you expect it, it’s not going to happen.  You’ll just be hopping along, stopping a millimeter or two shy of the lid someone else put over you a long time ago.

Look up.  There is no lid.  There’s nothing but blue skies overhead.  Stretch out your legs and get into your leaping crouch.  It’s time to liberate the fleas!

. . . . . .

So many people have read this post and assumed it was a true story . . . and it IS, up to the point where Beto is introduced.  From that point forward it is fiction; or rather, legend.  

The flea story has been around for some time (Google it) and I remember hearing it told with great flair by the former President of Help-U-Sell, Rick O’Neil.  In his version, he was a boy in New York City and the flea circus was in a basement on 42nd Street.  

I’ve been asked more than a few times how to find Beto, once by a resident of Ejidio el Porvenier!  

It doesn’t matter that Beto doesn’t exist and that the circus may never have existed anywhere.  The image of self-limitation is powerful.  

When I feel myself covered up with can’ts and yeah-buts, flinging themselves at me like fleas from the floor, I pause, look up, notice that there is no lid, and go back to doing the impossible. 

 

 

Flashback Friday: Charging Less, Making More

The ability to go into the marketplace with a financially attractive offer for consumers AND walk away from the transaction with more dollars than your more traditional counterparts is at the heart of Help-U-Sell’s appeal to brokers.

Think like an ordinary broker for a moment:

  • The success of the office is built on one thing:  your ability to attract and retain productive agents.
  • Your primary tool in accomplishing this is commission split — you know to be successful you need agents and to get them, you’ll need to pay well.
  • Unfortunately, the health of your bottom line is dependent on how many commission dollars you retain after splitting with your agents.

Put all of that in a hat and shake it up and you’ve got  . . . a mess!  Your formula for success is at war with itself! No wonder ordinary real estate offices suffer from embarrassingly low profitability if they make a profit at all (despite the fact that consumers think they’re paid way too much!).

Help-U-Sell takes dynamite to all of that nonsense.  First thing we do is demystify the listing process.  We toss out the notion that personality is what sellers buy when they list their property for sale.  Bunk! we say.  Listing is a logical thing.  If you present a system with a track record of success for a fee that is reasonable, most people jump at it.  Instead of two hour marathons where traditional agents warble on about how wonderful they are, listing presentations become simple, short and matter-of-fact:  here’s what we do, here’s what you do and this is what it costs.  Listing is so easy in Help-U-Sell that, well . . . even a Broker could do it.  That’s why we take the listing side of the business out of the agents’ hands.

We believe the listing side of the business belongs to the company, and the broker or an assistant (that’s different than an agent) takes all listings.  The agent’s role is on the buyer side, where we can afford to split commissions.  But, since we create all the leads for our buyer agents through our large number of listings and the power of our well-conceived marketing, we don’t have to give away the farm to get and keep salespeople.  We’re not asking them to call on FSBOS or Expireds, to knock doors or make cold calls to find listings.  We’re not asking them to master a slick listing presentation or memorize responses to two dozen common seller objections.  We just want them to take the prospects we’ve created and find them a property.   Good agents thrive at Help-U-Sell.

Back to the listing side;  here’s how the dollars break down:

Here’s where the ‘yeah-buts’ start to echo from the mouths of ordinary agents:

Yeah-but, with no listing agent the seller is getting less than full service!

Says who?  Full service is getting the property sold for the greatest walk-away dollars in the right time frame — and we do that every day.

Yeah-but, you get what you pay for!  When you list with me I’m going to actively market your property until it’s sold!

Um, let’s see . . . ‘actively market‘ . . . I guess that means put a sign in yard and a listing in the MLS, which then syndicates to a couple dozen Internet sites, right?  In my experience that’s what ordinary agents do when they get a listing.  In my Help-U-Sell office, we have a comprehensive marketing plan (that includes all of that and much more), orchestrated, monitored and constantly improved by . . . ME.  It’s not just a bunch of agents running around willy-nilly, making it up as they go along on every listing they take.

I could go on with the ‘yeah-buts,‘ but we try to keep these posts to a ten minute read or less.

We are a very proud group, and rightfully so.  We’ve taken the fluff and snake oil out of selling real estate and converted the process to logical systems that get results.  We’ve done it in a way that saves consumers thousands of dollars and makes our brokers a nice profit.  Who could ask for anything more?

How Long Must I Wait to Buy After a Short Sale?

Homeowners are breathing a little easier today.  Point your ear out your front door and listen: you may hear a sigh of relief!  Prices are rising – like crazy in some places – and fewer homeowners are upside down on their mortgages.  Today’s real estate market is no longer about ‘how much am I losing?’ but rather about ‘how much equity am I building?’  Almost anyone who bought a home in the past year is probably grinning from ear to ear!

But what about those who didn’t make it through the downturn?  What about those who lost their equity, found themselves upside down and, suddenly, needing to sell?  They pretty much had four options:

  • Move and let the  home go to Foreclosure
  • Negotiate a Short Sale with the lender
  • Forget about selling and rent the house
  • Sell and write a check at closing to the lender for the shortfall

Thankfully, not too many people opted for that last option – though it did happen in situations where the shortfall was small and the need to sell great.  And those who successfully rented their property are probably enjoying a nice increase in value now.  People who chose Short Sale or went to Foreclosure, however, have the same question:  how long before I can buy again?

First, understand that the answer is a moving target:  it has shifted over time and probably will continue to shift.  There are also no hard and fast answers as different lenders have different policies and some lenders will bend a bit if interest rates and discount points are high enough.  However, today, the following is typical:

To get a Conventional Loan after a Short Sale:

  • Two-year wait with a 20 percent down payment
  • Four-year wait with a 10 percent down payment
  • Seven-year wait with less than 10 percent down payment
  • Conventional lenders usually look for a FICO score in the 680 range after a Short Sale

To get an FHA Loan after a Short Sale:

  • Three-year waiting period from the Short Sale closing date
  • Home buyers can get a mortgage with as little as 3.5 percent down

Eligible Veterans can get a VA Loan after a Short Sale:

  • Two -year wait from the Short Sale closing date
  • Can still get in with no money down

There is one snafu that seems to be occurring regularly as former Short Sale-rs apply for new mortgages.  Sometimes the Short Sale lender reports the sale incorrectly to the credit bureaus as a Foreclosure.  This can be a big problem as most borrowers with a Foreclosure on their credit reports must wait seven years before becoming eligible for Conventional Mortgages.

If your last sale was a Short Sale, it is important to keep all of your paperwork from that transaction handy in case you have to prove that it wasn’t a Foreclosure.  It’s also not a bad idea to access your credit report before you begin the buying process to see how the Short Sale was reported.

August 19 Update:  FHA just announced new guidelines that will enable some borrowers with a short sale on their credit history to get back into the market in as little as 12 months.  The new rule requires documentation of an economic event precipitating the short sale – something like loss of a job – and demonstration of significant recovery from the event, i.e. 12 months of clean credit history.   Those with a foreclosure (instead of a short sale) must wait 3 years before obtaining and FHA insured mortgage.  

Flashback Friday: Equity In The Name

(This is from early 2010, though I changed a date reference in the 5th paragraph because, hey!  What was true then is just as true today!  Consumers seek us out because our offer is superior, because they will get great service and save thousands.  They stick with us because we are good people and we get the job done.  In the ordinary real estate world, where everybody pretty much has the same consumer offer, the only differentiator is personality:  who is most likable and magnetic.  That’s fine, but if you build a business on that you don’t have much to sell when it’s time to move on.) 

New Help-U-Sell brokers sometimes stew way too much about their DBA.  They want to come up with the perfect name, the one that expresses who they are;  the one that will kick their marketing effectiveness up another notch.  Is Help-U-Sell Superior Homes better than Help-U-Sell Apex Properties?

Truth is:  the consumer could not care less.

And that’s one of the fundamental strengths of the Help-U-Sell system.  Think about it:

An ordinary broker, running an ordinary agent-oriented office, is building . . . very little, really.  His business is driven by the personalities of his agents and the relationships they develop.  There is no unique consumer offering that draws people to the company.

In 2013, very few people call ABC Realty and say, ‘Hey, ABC, come list my house.’  No.  They call up Sally who happens to work at ABC and say, ‘Hey, Sally, come list my house.’  And you know what?  When Sally goes down the street to go to work for XYZ, they’ll call her there too.

So when that ordinary broker decides it’s time to cash in and move on, when he attempts to employ his Exit Strategy, he finds he has little to sell.  The value of his company is a gamble at best.  All a buyer gets is the chance to keep the agents who have done the business and the chance to keep the listings and clientele they have amassed.  And it’s a fair bet that at least some of those agents will not like the change and take the opportunity to move on down the line.

It’s so different at Help-U-Sell.   We have a business model and a consumer offering that people seek out.  Every day, people call Help-U-Sell and say, ‘Come list my house.’   When the Help-U-Sell broker decides it’s time to move on, he has a business to sell that can continue to function after he is gone.  The buyer is getting an established enterprise and the transition from one owner to the other will likely be invisible to the consumer.  The DBA becomes irrelevant:  it’s Help-U-Sell that matters.

But, ‘Oh!’ you say, ‘Real Estate has always been a business built on personal relationships!  People want to work with . . . people, not systems!’

That’s absolutely true.  But most people are also interested in saving money and they will often investigate their alternatives before even working with a pal.  That’s when they discover that we’re people too! Yup, underneath the neat system that gets results and saves money is a group of really good, competent, likable people.

That’s why so many of our established brokers enjoy great repeat and referral business.  Oh, the savings remains a driving factor, but it’s the personal relationship that turns satisfied customers into raving fans and keeps them coming back again and again.

I’m not seriously suggesting this, but I really don’t think it would make one whit of difference if you chose ‘Umm’ as your DBA:  Help-U-Sell Umm Realty.  Or maybe Help-U-Sell Acme, Ace or ABBA.  What matters is that first part, the part that consumers recognize as leading to savings.

How Help-U-Sell Works, Plain & Simple

Real estate sales commissions are high because they are designed to compensate four people: the listing agent, the listing agent’s broker – the selling agent (the one who brings in the buyer) and the selling agent’s broker.

Most real estate commissions are a percentage  of the sales price that you pay whether outside brokers and agents are involved or not. Because they are a percentage, the more expensive your home, the more you will pay.

At Help-U-Sell, we ‘un-bundle’ commissions and services. Our home sellers may choose to offer their property for sale through outside brokers and agents – or not. They may choose to go into the local MLS – or not.

Regardless which services the home sellers selects at the time of listing, however, the final fee is based on how the home actually sells. If there is no outside office or agent involved in the transaction, all the seller pays is the Help-U-Sell Set Fee.

That’s another difference: instead of a percentage based commission, our sellers pay a low Set Fee to market their homes through Help-U-Sell. And while there are minor variations based on specific market niches, generally the seller with the $400,000 home who lists with Help-U-Sell will pay the same Set Fee as the seller with the $350,000 home.

We are a full service real estate company. We do what ordinary brokers do and more, including:

  • Consulting with you on pre-sale preparation and pricing
  • Calculating your estimated net proceeds
  • Marketing you home using the most up-to-date and effective methods
  • Helping you evaluate every offer that is received
  • Looking out for your best interest through the transaction
  • Communicating what’s going on every step of the way
  • Handling problems as they arise
  • Coordinating inspections and transaction deadlines
  • Reviewing closing documents with you

Plus – we will save you thousands over what you’d pay most ordinary real estate brokers!

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