THE LAFAYETTE REPORT: January 2009

THE FEDERAL FIRST-TIME HOME BUYER TAX CREDIT PROGRAM.  In July, 2008, the U.S. Congress approved the first-time home buyer tax credit program which provided an interest-free loan to first-time home buyers.  The maximum amount of the tax credit was set at $7,500.00 and had to be accumulated based on changes to your income tax withholding or captured as a refund on your federal tax return.  For more information on the program, visit National Association of Homebuilders' Federal First-Time Home Buyer Tax Credit Website.   

UNDERUTILIZED PROGRAM - PROBLEMS WITH FUNDS ACCUMULATION.  Despite the initial hope offered by this stimulus plan, the initiative intended as a stimulus for home sales had a fatal flaw for many first-time home buyers.  The flaw was that there was no check received as a part of the program to fund either the down payment or the closing costs associated with purchase of the home.  It is and was a timing issue - when would the funds be available for use.  Although a change in withholding would permit the accumulation of funds, too few first-time home buyers fully understood the program and have taken advantage of it with adequate planning by changing their income tax withholding to accumulate the necessary funds for a down payment or for closing costs..  In addition, loan guidelines tightened in many areas requiring a down payment of 3% or 5%.  To add to the difficulties of some first-time home buyers, some lenders actually prohibited the use of third parties to advance or otherwise pre-pay these expenses either under a prohibition on third-party contribution of funds or under income-debt ratios which added the $7,500.00 as an outstanding debt as a part of the underwriting process.

THE SOLUTION - MISSOURI OFFERS LOAN PROGRAM ENHANCEMENTS TO PROMOTE THE USE OF THE FEDERAL FIRST-TIME HOMEBUYER TAX CREDIT PROGRAM.   To promote the use of the Federal First-Time Home Buyer Tax Credit Program, the Missouri Housing Development Commission developed the MHDC Tax Credit Loan Advance Program to advance funds up to 6% of the home purchase price (up to a maximum of $6,750).  Under the program, the Missouri Housing Development Commission originates a second mortgage to the home buyer at the time of closing and provides funds up to $6,750 to the purchaser to use for down payment or closing cost assistance.  The home buyer then files for the federal tax credit and uses the tax refund to pay off the tax credit advance loan made under this program.  If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over ten years begin automatically.

This program is available to first-time homebuyers with household incomes up to $85,000.  Both the Federal First-Time Homebuyer Tax Credit and the MHDC Tax Credit Advance Loan Program are set to expire on June 30, 2009.

For more information on these programs, please contact Ryan S. Shaughnessy, Broker-Principal of PREA Signature Realty, at 314-971-4381 or ryan@PREASignatureRealty.com.

When you start a new job or take a new position, you often start with a great explosion of positive energy.  However, when the activities performed at the outset don't generate immediate results, it is hard to stay focused, to keep on point, and to remain motivated.  Here are some tips shared by my business partner, Michelle Silies, with our sales staff:

Develop a Vision and a Plan:

•  Ask yourself the basic question - Does your vision and actions determine your success?  Or, do you let circumstances dictate your success?  Once you accept personal responsibility for your success or failure, you can develop the winning attitude necessary to stay motivated and succeed in sales.

•  Develop a vision and a plan for what you want to achieve in 2009.  Before you set goals, analyze what did and didn't work for you in 2009.  By doing so, you can develop a plan with goals that focus on your strengths and seeks to make improvement regarding your weaknesses.

Look for Progress (Not Perfection):

•  After you develop your vision and start working on your plan, establish personal and professional goals in writing for 2009.  Goal setting is extremely important.  Otherwise, you are letting circumstances such as market conditions dictate your success.  By setting annual, monthly, and weekly goals, you take ownership of your success or failure and become accountable.

•  Start each week by reviewing your goals.  Constantly remind yourself of your goals by writing them on a white board, putting them on a laminated card in your wallet, list them on your PDA, etc.  By reviewing your goals, you stay focused on what is important and you achieve greater awareness of what may be distracting you or impeding your progress towards achieving your goals.

•  After you have set your goals, create action plans for all goals with specific completion dates.  Place these dates on your calendar.  Track your progress on tasks, review your plan, and make adjustment.

Change Your Environment:

•  Eliminate clutter.  Start by clearing your work space or desk of clutter.  Develop a filing system whereby you eliminate clutter by placing items in a short term file on your desk for immediate review, file it your file cabinet, or toss it in the trash.  When you finish your office, tackle your car and then your briefcase.

•  When you feel overwhelmed, stressed or simply have a mental block, get up and out of the office.  Walk in the park, get a coffee, or visit with family and friends.  Get some fresh air, sleep, exercise or whatever you physically need to rejuvenate you.  The important thing is to take a break and then start with a fresh look at the problem.

•  Take a look at your work environment.  Ask whether your work environment is holding you back.  Some people thrive in a loud and chaotic office or can multi-task and work from home while managing kids, dogs, etc.  Others need a quiet, clutter-free environment.

Establish Your Support System:

•  Ask your sales manager what his or her priorities are for 2009.  Don't assume you know what the priorities are.

•  Contact your customers and thank them for their business.  Ask for referrals.  Take an interest in your customers, stay in regular contact with them, and offer your services to them as the life needs change.

•  Find a networking, mentor or similar group.  By sharing experiences and exchanging ideas and participating in such a group, you develop professional relationship that will give you a sounding board for improving your sales and business skills.

•  Don't try to do everything yourself.  Outsource small or even large project.  Consider hiring a virtual assistant to handle the things that you don't have the time, skills or inclination to handle.

Improve Your Sales Skills:

•  Remember that it is physically impossible to be good at everything.  Whether it is sales skills, search engine optimization or some other aspect of your real estate business, hire others to assist you in improving your skills.  I strongly believe that new real estate agents should invest in their future by hiring a sales coach to guide them through their first year in business.

•  Allocate thirty minutes a day to reading or listening about your profession. I strongly believe that new real estate agents should invest in a professional sales library to learn more about how to sell, how to manage their time, and how to manager their business.

Acknowledge Your Good Fortune:

•  When you start questioning your success or start to bemoan your personal situation, remember that everyone has faced personal challenges in their life.  Review the life stories of historical figures such as Abraham Lincoln and other to discover how they failed before they succeeded.  Examine your life and be thankful as there is always someone less fortunate than you are.

With the right motivation, right plan and right attitude, you can take control of your future and be as successful as you want to be.  Success requires self-discipline and action.  No one ever achieved success without working hard.  So start on the path to success today.  

PREA Signature Realty is a full service brokerage and consulting firm in Saint Louis, Missouri, providing sales management services to real estate developers and owners.  For more information on our sales management services, please contact Ryan Shaughnessy at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.

Recently, Anne Marie Malfi posted an inspirational article suggesting five great ways to "tune-up" your real estate business.  It was a fine post.  However, when she used the phrase "program your brain to see opportunity", it really resonated with me. 

In new home sales, I often see sales associates who have a myopic focus on their builder's inventory and often do not see business opportunities when they present themselves - particularly when they act only as the on-site builder sales representative.  Too often, we focus only on immediacy (ie. buy now) aspect of a sales call and not on the opportunity to cultivate long-term leads, seek referrals, or develop our referral netowrk.

For example, an on-site sales representative receives a call for a rental or a single family home or some other housing product that they don't offer or have available.  Instead of viewing this telephone call or interaction as a business opportunity, they simply dismiss the caller with an answer like "sorry we don't have any rentals" or "we only have condos and lofts for sale."

If the call stops with a simple "I can't help you" type statement, the on-site sales representative has missed multiple opportunities to capitalize on this contact.  Here is my suggested plan of action:

Step 1 - Engage in Conversation:  The first step requires you to engage the prospect in conversation.  In doing so, you have an opportunity to "peel the onion" (ie. remove the layers) to see if the person has considered or is interested in purchasing the product that you offer.  The simple fact is that some renters haven't considered purchasing, don't understand the costs and benefits of owning versus renting, or wrongfully believe that they can't or won't qualify for a loan to purchase a property.  Step 1 is equal parts of qualifying the prospect and educating the prospect. 

Step 2 - Provide Information:  The second step is to provide the prospect with additional information to assist them with their search.  In some cases, this could be as simple as directing them to the local multiple listing service or other website portal to search for properties.  It can also entail providing them with information on local neighborhoods, schools, businesses, etc.  Even if the prospect is not going to purchase a home from you now, you have added value and have acted as a valuable resource.  With periodic contact, you may be able to cultivate the prospect as a long-term lead.  In the alternative, you are enhancing your stature as a trusted advisor and have laid the groundwork to ask for referrals from the prospect's friends and family.

Step 3 - Make a Referral:  The third step is to refer the prospect to another real estate professional who handles the types of properties of interest to the prospect.  By doing so, you have provided assistance to the prospect.  More importantly, you have created a referral relationship with another real estate professional.  By creating a referral relationship, you now have created a bridge with that agent and that agent's office.

Instead of saying "no" to business opportunities, it is a better approach to recognize the business opportunity and say "yes." 

• Yes, I will try to educate the prospect on the benefits of home ownership and will make a sales presentation.
• Yes, I will provide assistance to the prospect, cultivate the prospect as a long-term lead, and ask for referrals. 
• Yes, I will develop a network of real estate professionals to whom I refer prospects that I am unable to assist. 

With one call, you have at least three opportunities to sell, seek referrals or develop a referral network.  In 2009, say "yes" to each and evey business opportunity.

PREA Signature Realty is a full service brokerage and consulting firm in Saint Louis, Missouri, providing sales management services to real estate developers and owners.  For more information on our sales management services, please contact Ryan Shaughnessy at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.

FEATURED BUSINESS - JANUARY, 2009

BLUES CITY DELI

When Two Cents Plain closed in Downtown St. Louis, I bemoaned the loss of one of the last old time delis.  However, there is a new sheriff in town and his name is Vince Valenza.  On most days, you will find him at the counter of his Blues City Deli (2438 McNair) in the Benton Park neighborhood.  If you visit more than once, this hands-on owner will likely welcome you by name. 

While the quality of his fare reminds me of the great East coast delis, he has taken the deli to a new level by combining two of his passions - great food and blues music - to create a unique establishment that pays homage to the blues greats who have visited or called St. Louis home over the years.  With blues memorablia adorning the walls and blues music filtering throughout the deli, it is a must see for those who enjoy the blues and are looking for a change of pace.  When you visit, you will be reminded of the great blues heritage that St. Louis shares with other towns like Memphis, Chicago or New Orleans.  This storefront deli also serves as a venue for live music on Thursday nights and Saturday afternoons. 

Admittedly, I have not experienced the live music at Blues City Deli.  I go there for three reasons - 20 great sandwiches, eclectic decor paying homage to the blues greats, and friendly service that only comes from an on-site owner.  Often, we judge our neighborhoods by the character of their restaurants - particularly delis and coffee shops - where people live.  By all respects, Benton Park has arrived as one of the great City neighborhoods to live and work. 

When it comes to delis, Blues City Deli ranks at the top of my list.  For more information on Blues City Deli, their menu or their live music schedule, visit their website at www.bluescitydeli.com.

If you are interested in purchasing a home in Benton Park or the other historic neighborhoods of the City of Saint Louis, PREA Signature Realty and its local City neighborhood specialists are ready to assist you.  For more information, please contact Ryan S. Shaughnessy at 314-971-4381 or by e-mail to ryan@preasignaturerealty.com or visit our webiste at www.preasignaturerealty.com.

With the start of a new year, we earnestly make resolutions to improve our personal and professional lives over the next 12 months.  For those few precious days or weeks, we zealously pursue these resolutions.  However, after the holidays are over, the hectic pace of everyday life begins.  With each passing day, we seem to lose our ardor and the intensity of our commitment to pursuing our new goals.  By mid to late January, we are deeply entrenched in the grind of our everyday lives.  The resolutions that we so ardently made are relegated to the back of a junk drawer and are forgotten.  So this year, instead of simply making resolutions, I developed a plan that I intend to use as my blueprint for success in 2009:

Step 1 - Embrace Change:  Before I set my goals for 2009, I made a list of five daily affirmations.  The affirmations focus on my ability to effect change in my daily life.  It included such affirmations as:

•  I can and will take control my daily life.

•  I can and will effectuate change in my daily life.

•  I acknowledge that there are things in my daily life that I will not be able to control or change.

•  I will strive for progress, not perfection, in reaching my goals.

•  I understand that it is insane to continue with the same activities and expect different results.

These affirmations are simple reminders that no plan is perfect.  In real life, our goals and plans to reach them must be fluid and must change with our personal circumstances.  We cannot and won't be able to change everything.  I also used the affirmations to refocus my thoughts.  Instead of thinking in absolute terms such "I will always..." or "I will never...", I set my resolutions and personal goals with the simple recognition that I am committed to making progress towards these goals.  Whether it is a weight loss goal or a sales goal, I recognize that I am looking for gradual and steady progress or change, not immediate perfection.

Step 2 - Take Personal Inventory of Core Values:  After I finished writing my five daily affirmations, I then took a personal inventory of my core values.  By the term "core values", I mean those unifying principles and beliefs that guide my conduct and bring me personal satisfaction.  I then wrote down ten core values.  After making the list, I then asked why these values were important to me.  Often, a value such as income or job security was really a subset of a deeper and more concise value like providing for my family.  As I reviewed the list, I then narrowed my core values to a list of five items.  While making this list, I noticed that my daily actions and my core values were not always consistent.  For example, working long hours did not match my strong commitment to family.  By reducing my core values to writing, I intend to use the list as a reminder of what is and isn't important to me.  When you take the time to think through your fundamental values, and then commit yourself to living your life consistent with them, you feel a surge of mental strength and well-being. You feel stronger and more capable. You feel more centered in the universe and more competent of accomplishing the goals you set for yourself.

Step 3 - Create Visionary Statements with Long-Term Goals:   Woody Allen once was asked "How can you make God laugh?"  He responded "Tell God your future plans."  Although I don't remember the context in which the line was uttered, I do remember what it meant to me.  To me, it is important to set visionary goals.  These visionary statements are lofty goals.  When they are first made, they can and should appear to be impractical, unrealistic or even impossible to attain.  I wrote out five personal and five professional goals.  Even reading them now make me laugh.  For example, I spent twenty years adding to my waistline.  One of my visionary statements is to return to my college weight.  It is a visionary statement because I am trying to undo in one year that which took me twenty years to build up. 

Step 4 - Break Visionary Statements into a Series of Milestone Goals:  After re-reading my affirmations, I realize that I will not be able to make permanent changes or achieve the goals in my visionary statements overnight or even in a matter of weeks.  When I look at the goals, they can seem overwhelming.  However, for each long-term goal in each visionary statement, I set a series of milestone goals with one new goal to be met each month.  For example, for weight loss, I set a series of progress and related goals:  January - elimination of fast food in-take; February - start regular fitness program; March - reduce carbohydrate in-take; April - start regular running program; etc.

Step 5 - Announce Your Milestone Goals to Your Partner:  It is difficult to make life-altering changes unless you have the support and encouragement of colleagues, friends and family.  For each goal, I selected a partner to act as my mentor, coach and/or sounding board for change.  Too often, we don't share our goals.  Instead, we attempt to pursue our goals in isolation.  When we commit to a goal, write the goal down, and announce the goal to others, it strengthens our commitment to reach the goal.  With the support and encouragement of others, we are more likely to accept short term set backs in pursuit of our long-term goals.

Step 6 - Track Your Success:  It is much easier to achieve a goal when you have a sense of personal satisfaction.  When you pursue a goal, develop a plan and monitor progress toward achieving the goal, you generate a feeling of success within yourself when each small step in the plan is accomplished.  You tend to feel more in control and more motivated to proceed with the next step to reach the lofty goal.  When you track your progress and generate the feeling of success, it becomes easy to do the "hard" or "necessary" things.  When you clear the first few hurdles, you then develop a psychological momentum that enables you to address and handle adversity that would otherwise be setbacks to achieving your goal.  If you need software to track your goals, consider using free software available at mylifeorganized.com to create your plan and to track the tasks necessary to meet your goals.

Step 7 - Take Action:  After you have set your goals, take action.  Each day review your milestone goals and your long-term goal and take some small step to reach the goal today.

If you have made resolutions for 2009, post a comment as to what your resolution was and how you are planning to reach the goal.  There is nothing like peer pressure on ActiveRain to meet your goals.  Good luck in 2009.