VanEd Newslog

Designation Spotlight: MRE - Master of Real Estate

What three things do consumers desire in a real estate professional? Trustworthiness, Representation and Communication, which are the hallmarks of the MRE, Master of Real Estate professionals.

The MRE designation is an education based program that requires a candidate continue their personal education beyond any mandatory requirements or statutes. The program is flexible, allowing for different students to complete a varying group of courses to earn the designation. Courses in the program are broad based and cover numerous real estate areas, such as Planning, Commercial and Negotiation. Students are also able to complete top National coursework and earn credits towards the MRE designation.

As new market economies push real estate professionals into new and unfamiliar areas, it becomes more evident that those who have continued to educate themselves beyond any minimum standards will have an edge on the competition. Learn more about the MRE, Master of Real Estate designation, requirements and courses by visiting the MRE website at www.RealEstateMRE.com today!

VanEd is proud to be the online provider to the MRE program and host to numerous continuing education courses within the program.

VanEd Presents: online Kentucky continuing education

VanEd is proud to begin offering our full line of Continuing Education courses for Kentucky real estate agents. The courses offer a wide variety and complete education package necessary for license renewal. Kentucky licensees now have access to the highest quality online real estate continuing education available anywhere.

Click Here to learn more about the courses and packages available to Kentucky real estate professionals, and find out why the most successful real estate agents in the industry choose VanEd.

Attention Brokers! Did you know that VanEd offers a Free subscription program that offers discounts and compliance and regulatory verification for Managing Brokers? Learn more online at http://www.VanEd.com/Affiliates.

Van Education Center is the trusted source of online real estate and appraisal education, offering programs in more than forty states with access to more than twenty professional designations and a growing list of professional development courses and programs. And now with the addition of Continuing Education in Kentucky, VanEd offers a full line of Kentucky products and services, including appraisal and continuing education courses and classes.

Visit http://www.vaned.com to learn more about all of our available programs, including Pre-License, Continuing Education and even Professional Development courses for real estate professionals.

Finance Friday: Buying a Short Sale — The Need for Speed

Short sales offer not just a lifeline to homeowners in over their heads, but an opportunity for homebuyers seeking an amazing deal. Better yet, thanks to new regulations, the once lengthy process has recently become considerably more streamlined.

In a short sale, a homeowner that cannot afford to pay the mortgage and the lender that loaned them the money enter into an agreement in which the home will be sold for less than the balance of the loan. This is generally because the homeowner has incurred a financial hardship — such as unemployment, an unforeseen medical expense or divorce — that is going to make it impossible to continue paying the loan.

So, the homeowner and the lender enter a short sale agreement as a win-win, and the buyer makes that a triple win. For the seller, a short sale enables them to start rebuilding their credit rating sooner than a foreclosure would allow. For the lender, a short sale lets them sidestep the often-sizable costs that they must bear in a foreclosure. And, of course, for the buyer, they benefit with a price often below market value.

However, short sales differ from standard real estate transactions. Buyers should understand the elements of a short sale so that they know what to expect and how to work with the seller. Cooperation is key between all parties in the short sale: the seller, the lender and the buyer, so you want to know the ins and outs.

Short Sale Process

A short sale involves an agreement between a lender and a borrower to sell the home for a price below the loan amount. Every lender has its process for a short sale, and it also has its own criteria for approving a short sale agreement.

The initial stages of a short sale will seem very much like a regular real estate process. You will want to get pre-approved for your loan, work with a real estate agent to find the short sale opportunities in your area, view the properties, research the ones you like, and begin negotiating with the sellers. But at a certain point, the lender will need to be brought into the process to approve the short sale terms. In other words, not only is the seller negotiating with you, but he or she must then negotiate with his or her lender to get its blessing on the deal.

Because of that negotiation with the lender, the seller will work with a real estate agent that is qualified to work on his or her behalf. The seller's agent often holds a short sales certification from the National Association of REALTORS®. This agent will be an expert in shaping the agreement with the seller's lender, and his or her expertise will help ensure that both the seller and you succeed in making a deal that the lender will be happy with and approve.

The short sale process used to be lengthy, and could go on for many months, while ultimately ending in disappointment. Thanks to new rules that recently went into effect under the Department of Treasury's Home Affordable Foreclosure Alternatives Program (HAFA), the process has become more streamlined, which works to everyone's advantage.

Previously, the lender could take months to review and consider offers put in by potential homebuyers. Under HAFA, sellers are now required to respond to a bid within 10 days. However, be warned that lenders will generally counteroffer your bid, which will stretch out the approval process. They can also take their time when accepting the final offer and completing the paperwork, which means a short sale can still take months to complete. When you consider the great deal you're getting, though, that extra time may be well worth it.

Sometimes a property may be listed as an approved short sale on the MLS. This means the lender has agreed to a selling price that is lower that the balance of the loan. In general, the approved short sale price is non-negotiable; however, you can reasonably expect an approved short sale to move faster than the other type of short sale.

As you can see, the short sale process offers homebuyers a tremendous opportunity to get into a good property at a bargain price. Better yet, HAFA has eased the process considerably and streamlined an ordeal that previously took up to a year into a realistic process for all parties concerned.

  

Guest Author Dirk Walker, CMPS® is with W.J. Bradley Mortgage Capital Corp. and has been a loan originator for 17 years. He is a Certified Mortgage Planning Specialist.

 

You can reach him via email at dirk.walker@wjbradley.com and he can be found online at http://www.DirkWalker.com.

 

Let the REPA certification help you increase productivity in an ever changing market

Real Estate professionals are finding more and more that contact and communication with customers is the single most critical aspect of client retention. Finding time to manage all of your contacts as well as your transactions and inventory is becoming more and more difficult as agents begin refocusing their prospecting efforts. One solution may be to hire or re-train a professional assistant to better be able to manage the day to day operations of your real estate business.

If you are ready to hire, or already have, a professional assistant, now is the time to have them focus their training to industry specific topics. If you are looking to get into the real estate industry as an assistant you can not come with better references than already having been trained.

The REPA^sm two-day certificate course provides an intensive introduction to the real estate business and to the specific ways support staff can become valuable assets to their employers.

During the program assistants will learn the basics of real estate ethics and will gain an understanding of transaction management. Agents are encouraged to have all of their support staff and assistants complete the training and earn the REPA^sm Certification. For more information on this program visit www.vaned.com/REPA.

Finance Friday: Foreclosures Affecting Retirement Security

A recently released study from the Boston Center for Retirement Research shows that security of retirement will be affected by the foreclosure market between now and 2012. Housing wealth gained by soon-to-be retirees from 1992 - 2004 was largely lost in 2010 resulting in stretched retirement savings. While foreclosure rates are overall much lower in older households, an increase in arrears and foreclosure rates is predicted over the next 2 years. Potential reasons for this increase include a trend toward rising mortgage values, home equity lines of credit, and high loan-to-value ratios in addition to an overall decline in financial wealth. Declines in house prices will likely effect retirees that desire to downsize their primary residence in exchange for a potentially better financial position. All of these factors combine to create increased pressure on retirement resources.

Have you saved enough for your retirement? Maybe it's time to take a look at your financial future. If you are not satisfied with the growth you are achieving with your current investments, make yourself aware of the full spectrum of retirement investment options available to those with Self-Directed IRAs by visiting NewDirectionIRA.com. You can learn more about using IRAs and 401(k)s for real estate online at VanEd.com.

 

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.

 

Graduate REALTOR® Institute (GRI) designation available online

In today's competitive business environment you need more than just motivation and initiative to   succeed, you need the advantage of the education you receive in the GRI program.

The Graduate REALTOR® Institute (GRI) designation indicates to buyers, sellers and other real estate industry professionals that you have made the commitment to provide a high level of professional service to your clients by securing a strong educational foundation.

VanEd is proud to provide the GRI program on-line for the State REALTOR® Associations in Wyoming, South Dakota, Colorado and Nebraska. Click on the links to learn more about earning the GRI in your state, or visit http://www.vaned.com/GRI for more information.

VanEd Presents: Oklahoma Real Estate Licensing online

VanEd, in partnership with the Oklahoma Association of REALTORS®, offers the online real estate pre-licensing program: Oklahoma Real Estate Licensing!

The Oklahoma Association of REALTORS® 90 hour real estate pre-license course provides everything you need to prepare for the state exam and get your Oklahoma Provisional Sales Associate license. VanEd is proud to offer this package in partnership with OAR.

This comprehensive program includes the 90 hour Pre-License class, Exam Prep (Free!), all books and materials AND, like all of the VanEd real estate license programs, all students will receive the "Getting Started and Staying on Track" Professional Development course. This course, written by author Jennifer Allan, will guide you as you get started in the business and help you to develop sound fundamental habits that will help make your first weeks in the business a success.

For more information on any of our Real Estate Licensing programs visit us online at http://www.oklahomarealestatelicensing.com.

Real Estate Educators Association (REEA) Annual Conference slated for Las Vegas, NV June 11-15, 2011

Mark your calendar for the Real Estate Educators Association Annual Conference to be hosted in Las Vegas, Nevada from June 11-15, 2011.

The 5-day event promises to be chock-full of several informative and useful seminars and discussions, including presentations for regulators, school owners, association education directors and speakers/trainers.  

Additionally, in conjunction with REEA, ARELLO-IDECC (the Association of Real Estate Licensing Law Officials-International Distance Education Certification Center) will be offering a full-day seminar on Saturday, June 11^th (from 8:30 am to 4:00 pm) on how to design and deliver distance education courses to meet industry standards.  This seminar is open at no extra charge to all full paid attendees.  More information regarding this and other scheduled events can be obtained by clicking on the links below.

The conference will be held at the Flamingo Hotel from June 11 to 15, 2011 and REEA is currently accepting online pre-registrations at https://www.reea.org/index.cfm/events/ or https://www.reea.org/.   If you are planning to attend take advantage of their early bird registration which is open through March 31^st, 2011. 

VanEd will be attending this conference which is geared specifically for real estate educators. If you are a speaker, trainer or education provider we urge you to take advantage of this opportunity to learn from and network with industry peers.

The Confident Rookie Series - SECRET #7 - Let Your Seller Prospect Talk

New agents are always nervous before their first listing appointment. Probably before their second, third, tenth & twelve, too. It does get easier, I promise, but here are some tips for getting through those nerve-wracking firsts...

My absolute best advice to first-time listing appointment-ers is to LET THE SELLER DO MOST OF THE TALKING! Two reasons for this.

First, this seller has probably already endured two or three sales-pitches from other real estate agents who barely took a breath to let him talk. They very likely didn't express much of an interest in him and his situation - they just directed his focus to their fancy-schmantzy listing presentation. Have you ever sat through one of those? BORING. I'd tune it out in about five minutes if I were a seller.

Second, you need to know as much as you can about the seller's situation and motivation before you can properly advise him. Heck, you need to know this stuff before you can decide if you even want the listing! So, besides the fact that the seller will love you if you let him talk more than you do, it also gives you the opportunity to better understand if, and how you can best help.

So, here's what to do when you get to the house. Have the seller show you around, ask questions, take notes, and really listen to the seller's answers. If this is the first time you've seen the inside of the seller's house, you can't really be expected to tell him what it's worth - you have to go home and do your homework. Nothing wrong with that. But the more you listen and show interest, the more that seller will be impressed with you - seriously! LISTEN, and the seller will trust you. Leave your sales pitch in the car.

That said, you do need to be prepared with a marketing plan in case the seller asks for one. You might be surprised how often they won't, but if they do, it's probably a good idea to have an answer. This is where the process of putting together a formal listing presentation is helpful. It forces you to figure out what the heck you ARE going to do to get that house sold and what services you'll offer.

The Confident Rookie Series: 

1. Know Your Systems
2. Practice with Your Printer
3. Preview, Preview, Preview
4. Drive Your Route Ahead of Time
5. Cheerfully Waste Your Time
6. Find a Handyman
7. Let Your Seller Prospect Do Most of the Talking
8. Get Comfy with Your Commission
9. Admit that You're New
10. What to say when you don't know the answer

 Stay tuned...

Subscribe to "Confidence Builders for Rookie Real Estate Agents" (a free newsletter)

Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  Her first book Sell with Soul is available in the VanEd bookstore. Her new book, Prospect with Soul for Real Estate Agents will be released in Spring 2011 and you can reserve one of the first 1,000 copies printed at www.sellwithsoul.com.

Finance Friday: Real Estate and Precious Metals as Investment Alternatives to Stocks and Bonds

Many investors are beginning to question the true value of paper assets such as stock, bonds, and mutual funds and are investigating hard assets, such as real estate or gold in an IRA. For some, it is comforting to know that despite fluctuating values, something remains to be held in hand in exchange for the time and money invested.

While some investors are still hoping the stock market will save them, others have decided that the old days of returns equal to 5% - 6% plus inflation are over. Andrew Smithers, financial consultant and author of “Wall Street Revalued”, predicts that over the next decade U.S. investors may only get 2% above inflation annually.

Real Estate and Gold investments are two increasingly popular hard asset alternatives. Pros and cons exist for each of these investments and choosing how much to invest in either will vary according to each investor’s specific situation. Some of the considerations that other investors have included when making this decision are included below as a starting point for personal research.

Real Estate Pros:

• Current market prices are relatively low in many areas
• Investors can effect asset value by choosing effective improvements
• Holds true value regardless of economic environment; everyone needs a place to live
• Can produce steady income via property rental
• Debt leverage may be utilized to make the investment

Real Estate Cons:

• Takes time to sell the investment, which decreases liquidity
• Investors must plan for investment expenses such as taxes, repairs, improvements, and mortgage payments
• Investment value is less obvious and available
• Steep investor learning curve
• Potential legal liabilities

Gold Pros:

• Precious metals are durable and lasting
• Values historically go up when the value of the dollar goes down, making it a useful diversification tool
• Universal medium of exchange for 5,000 years
• Stable commodity relative to political money
• Protects against inflation
• Easier than real estate to liquidate

Gold Cons:

• Current market prices are relatively high
• Does not produce yields
• Investors must plan for investment expenses such as storage, insurance, brokerage fees, and dealer markups
• It is possible to get fake gold or a lower gold content than expected with some gold investments
• Investments must be sold in physical increments, investors cannot sell ½ a gold bar or coin

As investors make the switch from paper assets to hard assets, it is important not to forget to diversify retirement plan portfolios as well. Regardless of whether the investor chooses real estate, gold, or both; if the investment is part of a retirement plan the first step is to open a self-directed IRA. Only Self-Directed IRAs can purchase real estate or precious metals as a retirement plan investment. Many investors may not realize that retirement plans may hold trust deeds, gold and silver bars and some coins in an IRA. Also known as real estate IRAs or precious metals IRAsthese investments are growing in popularity. Entrust New Direction offers free online educational presentations on these investments. Visit events.NewDirectionIRA.com for a list of upcoming presentations and learn about diversifying your retirement plan with hard assets.

 

 

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.