Trying to make sense of the Fed Mindset

Hi, you will like this…. Short and to the point!

Until just recently I have been absolutely sure of one thing. No matter who got elected a politician will be…..a politician. My observations of recent events only confirm my belief.

Captain Jack Sparrow in “Pirates of the Caribbean” said it best when he said to his rival, Captain Barbossa, “Me? I’m dishonest. And a dishonest man you can always trust to be dishonest. Honestly. It’s the honest ones you want to watch out for, because you can never predict when they’re going to do something incredibly stupid.

And, I must reluctantly admit, for the most politicians are incredibly……..well, honest!

We may be looking at a proverbial free for all as far as the credit markets are concerned. Prior to November 4^th, Election Day, timing could not have been worse for an emergency to pop its ugly head into the public eye. No politician up for reelection would be caught dead not doing something. One even stated that if they needed me they can call me. (Hmmmmm, Bigger fish to fry?). C-Span was at no loss for film footage and editorial content.

$700 Billion dollars later, like I could even picture what that means, we have not only a housing market to fix along with Wall Street financial giants mired in subprime debt, the auto industry’s big three have lined up next followed by various states and towns across the US looking for a bailout from the Federal government (You + I = Fed). What’s next?

Confusion creates Opportunity!

Ask any football coach worth his salt what do you do on offense when the defense gets confused. Stick to the basics again and again and again, and you will prevail!

Fact #1. Now may be the best opportunity to take advantage of real estate as an investment in the last 20 years.

Fact #2. Cash may be King. Finding creative means to finance and leverage your investments could be your biggest challenge. Finding ways to fund not only your activities, but also your customers purchases may be the key to your success!

Fact #3. Altering your business structure to take advantage of the wealth of opportunities available require you to get back to the basics.

Fact #4. Be prepared to educate your end buyer. This may be the key to your success.

Fact #5. Leverage your talent so that you can take advantage of the many different types of purchasing opportunities such as pre-foreclosures, short sales, REOs, and the others. The mainstays of probates, job relocation, etc., will be there too.

Conducting your business affairs with simplicity and purpose will keep you going strong during the day and sleeping at night!

See you next time and I look forward to your thoughts, too!

Thanks,

Davis Pyndus

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A matter of Perception

The Real Estate market is not dead, yet! It may be on vacation or sitting on the sidelines waiting for any last remnants of any election year government interference or attempts to fix it’s interference to evaporate, but, it ain’t dead yet!

Still bargains abound everywhere we look, from short sales, REOs, probate cases, pre-foreclosures, job relocations, etc., and may even be more abundant than years past. Possible new homeowners, however, are facing the possibility of losing their jobs, their 401Ks, their stock portfolio, or have other issues that require their immediate attention. The lone investor may be the only one looking to capitalize on these finds while on the other hand looking ever more creatively towards a solution to the property he/she may have already.

Are we giving too much credit to what we cannot control? What is missing?

Human nature, being what it is, never is logical! Give a person a choice to spend an amount of money on something they really, really, needs, versus what they really, really, want and guess which side wins. There is an old saying in the direct sales profession that states “Sell the Sizzle, not the steak”.

Test this out yourself. Picture a T-bone steak sitting on a platter in the edge of the table where you regularly sit. You smile and nod approvingly that that a steak would be a nice idea for tonight’s dinner. A good idea! Ah, but we are having chicken. J

Now, close your eyes and hear the steak sizzling on a metal platter as it is being carried to your table as you imagine the juices of the meat bubbling and steam rising from this culinary delight. Fill your senses with the aroma of specially prepared spices that were carefully added as they mix with the steak. Smile as you hold a butter knife and seeing it almost without effort size the perfect portion at the edge of your fork. Can you taste it?

Hey, get back here! No one said to go to the store to get that steak just yet!

Now, for your first assignment, take a look at what you are offering your prospects.

Have you been telling your customers something like this, “House with large living room, back yard, Must be seen. Only $249,900″

Or,

“This home will have you inviting yourself back week after week as you enjoy your private back yard with friends while a spacious living room awaits your command. Stop Renting and get this for only $2,300 per month”. Note: most people purchase according to their budget.

Are you presenting the correct information to your prospective buyer to allow them to make the proper choice?

Take a look at what you buy and why.

Need: Transportation to and from job. Want: Anything but a YUGO? We can narrow that down a bit.

Need: Roof over your head. Want: _____________________________!

Need: Watch news to see what is going on in the world. Want: __________________________!

Need: Clothing. Want: ____________________________________!

And, the winner is Eveyone!

Whatever your involvement in your company selling is Essential!

Thanks,

David Pyndus