TEAM EMPOWERMENT MORTGAGE CHATTER: February 25; 4 Ways to Boost Your Referrals; News and Headlines (FDIC, Fannie & Freddie, MERS, Oil; etc.); 7 Tips to Motivate Your Sphere Influence;10 Reasons People Decide To Buy A Home

“Trying to change the outer is like seeing your unshaven face in the mirror and trying to shave the mirror.” — Joe Vitale: Bestselling author and co-star of The Secret movie



 To get more referrals coming your way, you need to get your sphere of influence spreading your word. Real estate coach Maya Bailey offers tips on how to motivate your sphere of influence to refer you.

1. Offer to help.  When you call your sphere, make sure you have something to offer them, such as by offering to be a referral source for them and connect them to people who could help them, anyone from painters, electricians to plumbers. At the end of the conversation, you could add something such as: “When you hear of anyone who’s interested in buying or selling a home, please call me with their name and number. If it’s okay with them, I will call them and make sure that their real estate needs are being taken care of.”

2. Offer something valuable. Each month provide them with a valuable item, such as a colorful postcard that lists upcoming events in the community. They likely will post it on their refrigerator so to stay top of mind, don’t forget to include your photo, phone number, and tag line, such as “relax and let me run the extra mile to fulfill your real estate needs.”

3. Don’t be afraid to call. Some real estate pros suggest calling your sphere once a month but trust your instincts about how often you should call. Regardless, make sure you have a reason to call, such as “did you receive the postcard? What event are you going to go to?”

4. Be excited. You’ll make them excited to refer you if they see how excited you are about what you do. Say something like: “I am so excited about my business. I get to meet such wonderful people and I’m really in an expansion phase of my business. If you want to help out, just send people my way if they have a real estate question or issue, and I will be happy to help them.”



The FDIC Advisory Committee on Economic Inclusion (ComE-IN) will meet on Wednesday “to discuss principles for low- and moderate-income (LMI) mortgage lending, and supporting financial education.Committee members will discuss responsible ways to restore LMI mortgage lending and sustainable homeownership in the wake of the mortgage and housing crisis… borrowers’ opportunities for homeownership have diminished as the availability of mortgage credit has contracted. The market disruptions have been particularly difficult for lower-income borrowers, who have been disproportionately affected.” The meeting will be open to the general public and the media in Washington DC, and on the web: FDIC

Fannie reported a loss of $2.1 billion in the fourth quarter, while Freddie checked in with a loss of “only” $113 million. Freddie’s loss for 2010 was $14 billion, versus 2009’s loss of over $21 billion. “Freddie Mac also said Donald J. Bisenius, executive vice president of the single-family credit guarantee business, received a “Wells notice,” which indicates the SEC is considering filing a civil lawsuit against him. Credit-loss provisions at Freddie were $3.1 billion, down from $7.1 billion a year earlier and $3.73 billion in the third quarter. Down the street, Fannie is asking for an additional $2.6 billion in federal aid. For the year Fannie lost $21.7 billion. Both company’s performance includes billions paid to the government in dividends.

News on MERS goes ’round and ’round. A California appeals court ruled that MERS has the right to foreclose on defaulted borrowers in California. “Under California law MERS may initiate a foreclosure as the nominee, or agent, of the note holder,” wrote the judge last week. Earlier this month, an Oregon bankruptcy court allowed a MERS “Wrongful Foreclosure Claim” to proceed, based in part on plaintiff’s allegation that not every transfer of the loan was recorded in the land records. This may in part be due to Oregon’s judicial foreclosure statute allowing for foreclosures where not every transfer has been recorded. In McCoy v. BNC Mortgage, the plaintiff received a mortgage loan secured by a deed of trust naming MERS as the “Beneficiary.” According to the allegations in plaintiff’s complaint, the beneficial interest in the loan was sold several times, and was eventually securitized into a mortgage-backed security. According to plaintiff, none of the transfers was recorded in the county land records. Plaintiff eventually defaulted on the loan and, after the substitute trustee issued a notice of default, filed a chapter 7 bankruptcy petition. It goes on from there, and the case can be seen at BuckleySandler’s MERS.

Higher oil prices… are they inflationary? Many would say “yes,” although from the Fed’s point of view, higher oil prices actually cause people to spend less on other items and instead put their money into the gas tank. Either way, the oil market is all over the press, and we are reminded of it every time we drive by a gas station – prices are easily back up to 2008 levels.  CLICK HERE TO READ MORE: U.S. CONSUMERS FEEL THE PINCH OF SURGING OIL PRICES

Yesterday, and today, the turmoil continued to impact the financial markets. We also had a better-than expected Jobless Claims number, and a disappointing Durable Good figure. MBS volumes were less than the recent averages, and MBS prices finished the day better by about .250 in price with the 10-yr around 3.44%.

Wednesday we had one housing price index, yesterday we had another. The FHFA House Price Index declined 0.3% in December versus a projected 0.1% dip. On top of that, New Home Sales in January declined a more than expected 12.6% to 284k from a downwardly revised 325k that was previously reported at 329k. In terms of supply, at this pace we have a 7.9-month supply. For news today we have the Q4 GDP number (old news) and final February Michigan Sentiment at 9:55. The second look at the 4th quarter GDP number moved it from +3.2% to +2.8%. After the number we find the 10-yr around 3.45% and MBS prices close to unchanged.



The following tips will show you how to motivate your sphere of influence to refer to you easily and effortlessly.

Tip 1: Have a script so you know what to say.

What you decide to say may vary from person to person. The way you talk to a close friend may be quite different from the way you talk to a distant acquaintance. It is very helpful to have something to offer when you call. One idea that many of my clients have found helpful is to call your sphere of influence and offer to be a referral source for them. In other words, let them know that you have plenty of connections to people who could help them. For example, you know many painters, electricians, plumbers, etc. and your sphere of influence should know that if they need any names and phone numbers they should call you and you will be happy to provide a referral source for them.

Tip 2: Think of yourself as being “the giver.”

Most of us love to be the giver. We know we will be well received and people will like us. We also know that “giving” leads to more business. Before you pick up the phone to call your sphere of influence ask yourself, “what can I give to them?” One way that you could be of service to them is to offer to be a cross referral partner. If they have their own business, ask them how their business is doing. Ask them how you could help them at their business. Ask them what kind of referrals they would like to receive. Let them know that you will do your best to send referrals to them. At the end of the conversation, you can say something like, “when you hear of anyone who’s interested in buying or selling a home, please call me with their name and number. If it’s okay with them, I will call them and make sure that their real estate needs are being taken care of.”

Tip 3: Send an “valuable item” each month.

What kind of valuable item should you send? It used to be that sending newsletters was a hot item. However, most people have gotten too busy to read a newsletter.

The item that works best is a colorful postcard that gives the events happening in their area. Your sphere of influence is likely to put that postcard on the refrigerator and refer to it often. Of course, next to the list of events happening in the area is your photo, your phone number, and your tag line such as “relax and let me run the extra mile to fulfill your real estate needs.”

You start to enter their stream of consciousness. They start to associate positive ideas with you:

-You are associated with happy events in their area,

-You are associated with brilliant bright, happy colors in the postcard,

-Your face smiles at them every time they go to the refrigerator.

Do you think they will be more likely to remember you the next time they have a real estate need or a real estate question?

Tip 4: Don’t be afraid to call them too often.

As long as you have a good reason to call, they will be happy to hear from you. Trust your own gut instinct about how often you should call. Many real estate gurus suggest calling people in your sphere of influence about once a month. You may choose that to do that with your “A list,” the people most likely to refer to you. Since you are sending an item of value each month, you can always ask them “did you receive the postcard?” You can follow that with, “so what event are you going to go to?”

Tip 5: Assume the positive.

Simply assume that they will be happy to hear from you. Why wouldn’t they be? They are receiving a wonderful colorful, informative postcard from you each month, then you are calling and offering them something, and you are conditioning them to want to hear from you. Assume that you have something valuable to offer, your friendship and your real estate expertise, and people want to hear from you.

Tip 6: Be excited about your business.

Remember, desperation does not sell, but excitement does. No matter what the current condition of your business, always say something like, “I am so excited about my business. I get to meet such wonderful people and I’m really in an expansion phase of my business. If you want to help out, just send people my way if they have a real estate question or issue, and I will be happy to help them.”

Tip 7: Use the law of attraction.

To successfully use the law of attraction, you need to be clear about what you want. Do you want your sphere of influence to send you several clients a month? If so, then set your intention, “I am now in the process of attracting several new clients from my sphere of influence each month.”



Renting is a very frustrating way of life. The money you pay every month disappears, leaving you with few benefits other than a roof over your head. Compared to owning a home, renting is a futile exercise that leaves you with nothing after your lease is up. It’s no surprise that people want to get out of the rent race, and here are 10 reasons why people decide to buy a home versus renting.

1. They Want to Build Equity

Homebuyers build equity as their property increases in value over time. This equity has many benefits, including the ability of a homebuyer to leverage equity in lines of credit to make repairs or additions to their home. Equity is a powerful thing and a natural consequence of home ownership. Renters never gain equity in their rental space, and at the end of their lease they are thrown out on the street with nothing to show for years of on time rental payments.

2. They Don’t Want to Throw Their Money Away

Without equity, what does paying your rent on time gain you every month? The truth is that paying rent guarantees a roof over your head for about 30 days and nothing more. In that sense, renting is like an extended stay hotel in that at the end of your rental period or lease you have nothing to show for the money you’ve paid. This makes renting a terrible investment when compared to home buying.

3. They Want More Space

It’s incredible how little you get for your rental payment each month. Most renters are lucky to have even a tiny balcony, let alone roomy closets o storage space. Many homes come with luxurious yards and spacious garages for storage. This makes buying a home an attractive option for those who prefer to stretch their legs.

4. They Want to Make Upgrades

Most leases forbid the renter from altering the rental space. For those do it yourselfers, this can mean a boring living experience. Home buyers are not only allowed to make upgrades, but doing so can be a great investment and raise the overall value of your home. From an investment perspective, this is a no brainer.

5. They Don’t Want to Pay Extra to Own Pets

For those pet lovers out there, renting can be a major financial undertaking Pet deposits can be very expensive, and some apartments add a monthly premium to rent just for having a pet, and separate deposits/premiums for each pet. These fees can add up fast! Homebuyers don’t have to deal with these sorts of fees, and they can also typically provide a better environment for their pets as well.

6. They Don’t Want to Be So Close to Noisy Neighbors

Have you ever lived on the second floor of a 3 story apartment complex? Wild partiers underneath blaring music at 4AM and home fitness gurus doing jumping jacks above you can make you realize just how annoying living so close to your neighbors can be. Homebuyers can sometimes deal with annoying neighbors as well, but at least they’re not rattling your chandelier when they stomp their feet down the hallway.

7. They Don’t Want to Deal With a Landlord

Sometimes dealing with a landlord can be tough. Some landlords are not very friendly or flexible, and won’t hesitate to throw you on the street if rent isn’t on time. Other landlords can be so distant that problems with rent or appliances don’t get resolved for months or even years. As a homeowner, there’s no landlord to deal with and you have the freedom and independence of conducting business on your own terms.

8. Their Hobbies Make Renting a Bad Idea

Drummers and musicians need a place to live, but do you want them living above you in a cramped apartment complex? For those renters who have hobbies or professions that are noisy or require space, renting just isn’t an option for them. Owning a home with plenty of space is their only way to go.

9. They Don’t Want to Deal With Deposits

Security deposits? These never seem to work out in the renters favor and come moving time it always seems like every little problem leads to forfeiture of the sometimes huge security deposits we have to pay just to sign the lease. Home buyers don’t have to deal with this as their home is more closely tied to their assets and their individual independence.

10. They Want to Live the American Dream

Owning a home is a big part of the American dream, and most people would say that the independence, autonomy, and sense of accomplishment that owning a home brings is an essential part of the American way of life. Does renting an apartment do the same?

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