Please help save our real estate industry. On July 21, 2010, our President signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. It’s another federal statute responding to the financial meltdown of 2008 that occurred in part because the Federal government unwisely forced banks to take on risky loans.

In reality, this statute was nothing more than government taking over our industry with the most sweeping regulatory changes since the Great Depression. It’s just another regulation that says, “Government knows better than you how to run your business.”

But does it? Ask yourself this question: How many of your buyers can afford to pay 20% down?

Answer: According to NAR statistics, only about 60% of them, in most markets. And of those, most would have to wait 14 years to do it in many markets.

This means that an average family paying $1,200 a month rent would be spending over a $200,000 that could otherwise be going toward mortgage payments without this regulation. That’s a lose-lose for everyone!

I fail to see where the Federal government is helping by forcing another regulation on our industry.

A Healthy Market is the Key

Now we need your help. Opposition to this destructive regulation has broad, bi-partisan grassroots support, but we need to contact our legislators and get the votes in Congress to defeat this proposal before August 1, 2011.

I believe that a healthy real estate market is the key to our economic recovery in this great nation. And real estate agents know best how to make this happen, not government. Help us get those regulators out of our pockets today!

The three most important steps you can take today are:

1. We urge you to stand with us and to donate to the American Leadership Fund today with a secure contribution of $1,000, $500, $250, $50 or whatever you are able to give to help us raise another $5,000 in the next 24 hours. You can choose a monthly amount or a one-time donation. (My wife and I have spent well over this amount personally and we are asking for your support to continue on).

2. Call your Congressional representatives today and let them know you oppose the QRM amendment to the Dodd-Frank Act and;

3. Sign up http://americanleadershipfund.com/ for updates and forward this message to your friends. Thank you!

Sincerely,

Randy Eagar

And get this. Want to know what the devices are? Think they have anything to do with mortgage lending? NOT A THING! Then what are they? They are devices to “protect” you from using too much energy. Okay, let’s say this the rational way. They are locks that THEY ONLY have the key for to turn your gas off (can you say “residential emissions”). I think that I’ll come up with a lock that I can put on YOUR home that only I have the key to and call it “cap-and locks”. BTW- If you look at the patent, it looks like a 3rd grade science project.

Can you believe it? Now, after putting us in a horrible housing crisis by going all in for sub-prime loans (yeah, I know agents thought these were great at the time) now that they get a bail-out for as much money as they want, they’ve decided that they’re not to good at lending money, but this “cap-and-trade” idea just might make them money . . . a LOT of money. And to whose detriment? OURS. I only have one question Mr. Obama.

How do we get rid of this overreaching dinasaur of a conglomorate called Fannie Mae?

Randy Eagar, CRS

I know that this will be unpopular, especially after being in the business for over 30 years, but I think that this extension is nothing but another “sweetheart deal” for another private industry. We like to think that we are special in leading this country out of a recession (which we are told that we are now out of) but the way out of any recession is to let the market take care of itself.
Of course this extension will be good for REALTORS. But where does it stop? How soon before we bailout Fannie and Freddy . . . AGAIN? How soon before the government owns the banking industry? How soon before the government owns the auto industry . . . oh yeah, it already does.
Currently the government has gone from owning 11% to now 30% of our net worth! When do we let the free market stand on its own?
Remember the sweetheart loans that we all got last year and the year before that put most of their homeowners into foreclosure? Do you still think that the short term good was a long term benefit?
I am now hooked on the show “V” on ABC. Why? Because it demonstrates what is happening to us right now. At two points in the show the main characters foreshadow the biggest evil that is happening with an alien culture coming to “give” miracles to we earthlings. The biggest evil is that we become DEPENDANT.

I fear that every industry is now asking for their share. Where is my “entitlement”? I think the better question is “where is my freedom”?
Randy Eagar, CRS

The one good thing about this economic catastrophe is that we’re all in the same boat. So now it’s time to do something that you would never think possible in a “normal” economic time:  barter. Ask for financing on the products and services you purchase.

Bartering
Wikipedia defines “bartering” as a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent.

Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation. Bartering benefits companies that see a mutual benefit in exchanging goods and services rather than cash.  It also enables those who are lacking “hard currency” to obtain goods and services.

How It Works

 The member companies buy and sell products and services to each other using an internal currency known as barter or trade dollars. Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world.

Businesses in a barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members utilizing their trade credits.  They are not obligated to purchase from the person to whom they sold, and vice versa.

The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both (sound familiar?). Transaction fees typically run between 8 and 15%.

You sell homes, and those that pay you a fee may or may not have the cash to pay. Consider bartering a portion of your commission (with your broker’s blessing, of course) for products or services that the seller has that could be used to help you sell homes. Think of all the things you currently buy to get you through the month.

In the old days, there was no “cash,” and so all there was, was bartering. If the economy gets much worse, we may be forced to return to this basic policy across the board. However, I’m looking at this as an opportunity.  Make it easier for those selling their homes to do so without needing cash.

Does your home inspector need his/her home evaluated (note that I didn’t say “appraised” for you non-appraisers)? What does your carpet store need that you could provide without paying cash? The options are endless.

Favorable Financing
In this area, I’m referring not as much to home financing as much as I am to financing goods and services. Maybe you can’t find anything to barter for the goods or services you want. Here’s your option: Ask for favorable financing.

What is “favorable financing?” Let’s say you want to buy that new software program that will get you organized. Try telling them that you don’t have the full amount of cash, but could you pay 50% down and have them carry the balance for 6 to 12 months at 0% interest?

Here’s the interesting thing about asking for favorable financing. We don’t think companies would do this, and yet when is the last time you went into a car dealership and didn’t see an option of 0% financing? And if large companies are hurting, don’t you think small companies are hurting even more?

Now is the time to take advantage of that silver lining in this dark economic cloak with which we are covered. Before you say “This will never work!” I’d ask . . . “Have you asked?”

Randy Eagar has been Realtor Of The Year, Salesman Of the Year, National President of the CRS Council and author of the most successful CRS 2-day Technology Course. He is a sought after speaker and technology humorist. You can hire Randy by email Randy@ComputerCamp.net or calling (800) 277-1316.

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