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Patrick Hale's Blog

By Patrick Hale | Managing Broker in San Diego, CA
  • Consistent Contact Pays Off

    Posted Under: Agent2Agent in California  |  April 11, 2012 7:31 PM  |  1,287 views  |  6 comments

    Have you ever wondered how many contacts it takes with the same prospect before they might do business with you? Many say seven. Actually, research has shown that the number ranges from five to twelve, but seven is a good rule of thumb.

    The Rule of Seven is an old marketing adage. It says that it will take seven "touches" before the marketing message you are delivering will have any significant impact. Now the number seven isn't cast in stone. The truth of the Rule of Seven is you can't just engage in a marketing activity once or twice and then be done. Marketing must be an on-going process in order for it to be successful.

    So why do prospects need to receive your message so many times before taking action? When it comes to target farming in a new area, at first people don't know you from a hole in the ground. They might have seen other marketing pieces from other real estate agents claiming to be the best one to get the job done. Maybe they have received "just listed/just sold" cards from other agents. There is a lot of clutter out there when it comes to real estate marketing. Not only are there are too many messages, there are too many messages that aren't true.

    It takes time for people to get to know you - remember your name, your offer, your message. Once they know you, they need time to get to like you - and your business. Over time, they'll eventually start to trust you. Once they trust you - trust that you're honest and provide true value - then, and only then, will they be ready to do business with you.

    The Rule of Seven is why "information marketing" is so effective. By providing free information to your prospects on a regular basis, you are building a solid relationship. Information offered in a newsletter doesn't set off alarms because it's not a sales pitch; it's a genuine attempt to educate and help.

    To enhance your marketing efforts even stronger try supplementing your newsletters every now and then with follow-up phone calls. Does your prospect have any questions about what you are sending them? Would they like any additional information above and beyond what you are able to send them? Be sure to wait until some familiarity with who you are has been established before making these calls. They therefore become "warm" calls, not cold calls

    Finally, simplify or automate the process as best you can. Too many real estate agents only market sporadically because they are "too busy" to market themselves. Then they wonder why they don't have enough clients. Set aside regular times to engage in marketing activities, even when you're busy. Or better yet, find someone else that can do it for you. If you continue marketing even when you're busy, you'll have fewer slow times.

    Based upon a survey completed by the National Sales Executive Association, below is the percentage of sales made relative to the number of contacts made with the prospect.

    • 2% of sales are made on the 1st contact
    • 3% of sales are made on the 2nd contact
    • 5% of sales are made on the 3rd contact
    • 10% of sales are made on the 4th contact
    • 80% of sales are made on the 5th-12th contact


    Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
    Chief Executive Officer | Broker of Record

    The Local Realty, Inc.
    A LocalRealtors.com Preferred Partner
    Office: 619-309-7883
    CA BRE Lic. #01777558
    www.TheLocalRealty.com

    • Making the Follow-up Phone Call

      Posted Under: Agent2Agent in California  |  April 11, 2012 7:29 PM  |  1,293 views  |  3 comments

      You have decided that today is the day you will start making your follow-up phone calls to your farm and sphere of influence. Great! This will certainly lead to additional business opportunities. It might seem like common sense, but preparing for these calls will lead to better results and is crucial to maximizing effectiveness when making your calls. Here are some ideas on how you can prepare before making your follow-up phone calls.

      1. Get "in the mood." It might sound like an oxymoron to get in the mood to do this tedious task, but is extremely important. I don't think that anyone actually enjoys making follow-up calls, but it is necessary for business growth. When I was in college, one summer I took a job working for a telemarketing firm selling industrial cleaning solution to restaurants. One of the things issued to me other than the phone list and script was a mirror. I was told to look into the mirror and smile before placing each call. It seemed silly at the time, but I have to say...it really works. Try it right now. Go ahead and smile. It puts you in a better mood and that mood comes across during your phone call.
      2. Know who you're calling. Sounds obvious, but we have all been guilty of making a call to a name after name on a list and forgetting who we called. Make it a habit to keep a note pad in front of you and write down each contacts name before dialing along with any note relevant to that person. Maybe you saw them at the mall last week or at a party some time ago. Perhaps you are following up on a mailing that you had done recently. Making the conversation about more than looking for business will help your cause.
      3. Use your contact's name several times during the call. Dale Carnegie used to say, "a person's name is the sweetest sound that they can hear." This is true. Be respectful and use a surname if needed, but a first name is usually best and forms more of a camaraderie.
      4. Prepare a "script." A better name for this essential tool would be "introduction and talking points." The last thing you want is to sound like you are reading lines. Begin with a brief introduction of yourself and the purpose of your call. Say just enough to answer the question "what's in it for me" for the person you are calling, then check to see if they have time to speak with you.
      5. Your talking points should contain mostly questions you wish to ask them, and answers to questions they may ask you. Each one should be no more than a breath or two long. If you have to inhale several times to get all your words out, you're making a speech, not having a conversation.
      6. Speak briefly - then listen. People don't like to get "pitched." Find something that you can do for them or better yet ask them for their opinion. Listen. Take notes. Respond briefly and listen again.
      7. Make it a conversation. Your talking points should be a loose framework, not an outline that must be covered. This is why listening is so important. Yes, keep your purpose in mind, but let the other person's responses guide the direction of the call. Especially at the beginning of the conversation, keep your focus on learning rather than selling.
      8. Be yourself. If you remember none of the other tips on this list, remember this one. The person you are calling is another human being, with a family, responsibilities, problems, goals, and dreams. If you speak from that authentic place yourself, you will establish a personal connection with the people you call. But if you put on some artificial selling persona, your listeners will immediately go on the defensive.
      9. Keep in mind your own reaction when you answer the phone and realize you are about to be sold to. Isn't it usually, "Oh no, how fast can I get rid of this guy?" Make it a point to have your call be one that people enjoy getting, because they are speaking to a real person who treats them as if they were real, too.
      10. Ask for the business. This is the reason you made the call in the first place, isn't it? Simply asking if they are looking to buy or sell a home in the near future - or if they know anyone else that will be - can get you leads.


      Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
      Chief Executive Officer | Broker of Record

      The Local Realty, Inc.
      A LocalRealtors.com Preferred Partner
      Office: 619-309-7883
      www.TheLocalRealty.com

      1. Different Ways to Conduct a 1031 Exchange

        Posted Under: Home Buying in San Diego County, Home Selling in San Diego County, Investment Properties in San Diego County  |  April 11, 2012 7:23 PM  |  1,472 views  |  No comments

        Investors have the ability to structure 1031 exchanges in several ways. Depending on the investor's situation any of the four exchange types listed below could be a viable option:

        Simultaneous Exchange
        In a simultaneous exchange the relinquished property is sold and the replacement property acquired on the same day, with concurrent closings. The simultaneous exchange is rare and investors should still use an Exchange Accommodator when doing a simultaneous exchange.

        Delayed Exchange
        The most common method of exchanging, the delayed exchange, allows investors to sell a property and then acquire replacement property within 180 days.

        Reverse Exchange
        The reverse exchange allows investors to acquire replacement property prior to selling. The reverse exchange can be more complicated however, as investors cannot own both the new replacement property and (soon to be) relinquished property at the same time. Asset Exchange Company, as an Exchange Accommodating Titleholder, will need to go on title to one of the two properties involved in the exchange. Investors considering a reverse exchange should contact Asset Exchange Company well in advance of closing on the replacement property. For more information about the reverse exchange, please call 877.471.1031 for a free consultation.

        Construction/Improvement Exchange
        The construction exchange allows investors to use exchange proceeds to build on land or improve an existing property. The construction/improvements exchange is often used to acquire a 'fixer' and do improvements on the existing structure. The challenge with a construction/improvement exchange lies in the fact that all exchange funds need to be spent on or before the 180th day of the exchange.


        Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
        Chief Executive Officer | Broker of Record

        The Local Realty, Inc.
        A LocalRealtors.com Preferred Partner
        Office: 619-309-7883
        www.TheLocalRealty.com

      2. 1031 Exchange Guidelines: Basic Guidelines for a Successful Exchange

        Posted Under: Home Buying in California, Home Selling in California, Investment Properties in California  |  April 11, 2012 7:15 PM  |  1,412 views  |  No comments
        It's not surprising, as distressed sales and short sales seem to be occupying the time of most real estate professionals these days.  However, with the market stabilizing, many investors are looking to reposition their holding so we thought it'd be a great time to review the basics of 1031 Exchange. The four basic requirements for a successful exchange are:

        1. Property Qualifications
        The internal revenue code states that the properties involved in an exchange must be held for productive use in trade or business or for investment, and they must be like-kind

        2. Timeline

        The IRS provides a maximum of 180 days to complete an exchange. The timeline begins upon the close of escrow (COE) of the relinquished property. The new property (or properties) must be acquired on or before midnight of the 180th day. No Exceptions!

        3. Identification

        Identification of all potential replacement properties is required on, or before, day 45 of the exchange. Identification must be in writing and the description of the properties must be unambiguous. The IRS provides two rules for identifying replacement property:

        The 3 Property Rule - The 3 Property Rule allows for identification of any three properties, of any value, anywhere in the United States.

        The 200% Rule
        - The 200% Rule is an option for identifying more than three properties. With the 200% Rule, four or more properties can be identified. However, the combined value of all properties identified cannot exceed 200% of the property sold.


        4. Tax Deferral

        To defer 100% of the capital gains tax liability, two requirements must be met

        Reinvest all the Cash
        - all the cash that was generated from the sale of the relinquished property must be reinvested into the replacement property (or properties).


        Purchase Equal or Greater in Value
        - the value of the
        replacement
        property (or properties) must be equal or greater in value to the property sold.


        Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
        Chief Executive Officer | Broker of Record

        The Local Realty, Inc.
        A LocalRealtors.com Preferred Partner
        Office: 619-309-7883
        CA BRE Lic. #01777558
        www.TheLocalRealty.com
      3. Working With SHORT SALES? New Changes Coming in April.

        Posted Under: Home Selling in California, Agent2Agent in California, Foreclosure in California  |  April 11, 2012 6:52 PM  |  1,397 views  |  No comments
        Here are some specific changes that are effective April 14:

        In line with C.A.R.'s request and recommendation, BofA's Short Sale Purchase Contract Addendum will no longer include the agent/broker language, and agents and brokers are no longer required to sign it.

        Changes are being made to the Equator system so that multiple tasks can be done at once. Most importantly, property valuation can start earlier to expedite the short sale process. Some of the task names will be changed, so expect a learning curve.

        If a buyer walks away on a short sale, the amount of time to submit a backup offer will be shortened to five business days.

        C.A.R. is pleased BofA has made these changes to its short sale documents and process in line with C.A.R.'s recommendations. We look forward to continuing to work with BofA to improve the short sale process in ways that will mutually benefit both REALTORS® and lenders.

        Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
        Chief Executive Officer | Broker of Record

        The Local Realty, Inc.
        A LocalRealtors.com Preferred Partner
        Office: 619-309-7883
        CA BRE Lic. #01777558
        www.TheLocalRealty.com
      4. San Diego Properties

        Posted Under: Home Buying in San Diego County  |  November 9, 2011 10:28 AM  |  816 views  |  No comments
        If you're looking into buying San Diego Properties, there are several things you need to consider. First and foremost, you will want to decide what type of purchase this will be and what your motivation is for that purchase.

        If you're looking to invest into San Diego Properties, will this be a long or short term investment?

        What is your exit strategy?

        Have you selected the best financing option for that exit strategy?

        Investing in San Diego Properties has given large returns to many of my clients even in this current market. Make sure that you utilize an investment pro-forma in your next purchase to make sure you understand all of the expenses involved in home ownership of San Diego Properties. Each area has their own tax rates which will increase based on things like: bond measures, mollo roos fees, etc. Consult with a local San Diego Property advisor with our team in order to get accurate numbers.

        If you need assistance with developing a pro-forma, our San Diego Property investment specialists can assist you with purchasing and financing both residential and commercial properties in San Diego and througout California.

        Lets put a plan together to create your retirement fund by purchasing San Diego Properties.

        Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
        Chief Executive Officer | Broker of Record

        The Local Realty, Inc.
        A LocalRealtors.com Preferred Partner
        Office: 619-309-7883
        CA BRE Lic. #01777558
        www.TheLocalRealty.com



      5. 2nd lein modification program - 2MP - San Diego, CA

        Posted Under: Home Selling in San Diego County, Financing in San Diego County, Foreclosure in San Diego County  |  November 14, 2010 12:24 AM  |  1,246 views  |  No comments

        2nd lein modification program  or 2MP program. This provides more information on the government modification program available to homeowners seeking a short sale or alternative to foreclosure in San Diego. Provided By San Diego REO & Short Sale Specialists at Keller Williams Realty. www.SanDiegoRealEstate360.com
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