By Robert Freedman, Senior Editor, REALTOR® Magazine
President Obama signed into law a $30 billion loan find for small business. The law also provides $12 billion in tax breaks and tries to improve existing loans to small businesses that are backed by the U.S. Small Business Administration.
When compared to the $800 billion stimulus enacted when Obama took office and the massive reform laws for health insurance and Wall Street financial services companies, the small business loan law is small potatoes. But there are some things you should know about it.
First, although the $30 billion isn’t a giant number for the federal government, it has the potential to leverage some $350 billion in financing, and that is a big number. And, importantly for deficit hawks, the new law is funded without requiring the government to issue new debt. It’s paid for by increasing certain tax penalties and by closing some tax provisions.
What’s important for you is that, even if the new law works as planned and in fact induces small banks to boost their lending to small businesses, there’s no assurance that any bank you work with will participate.
That’s a big complaint with the loans to small businesses that are backed by the Small Business Administration (SBA). These loans (known as Sec. 7(a), Sec. 504, and ARC loans) are touted as a way to help small businesses get money to retire expensive debt or do other things during these tough times, but NAR has heard many concerns from members that lenders aren’t participating, or that, if they are participating, they’re not bending over backwards to make loans to independent contractors (who the SBA says are eligible applicants). Continue reading »
By Melissa Dittmann Tracey, Contributing Editor, REALTOR® Magazine
Take a deep breath. Relax.
You’re stressed out, according to a recent survey from CareerCast. In fact, working as a real estate agent is considered one of the most stressful occupations you can have, according to its 2010 Jobs Rated report. So you’re not just a little stressed — you’re REALLY stressed!
Real estate agent came in No. 10 as most stressed occupations on a list of 100 jobs. The survey took into account such factors as work environment, competitiveness, and job risk.
Complex transactions, demanding clients, a sagging housing market, and steep competition — who couldn’t blame you for feeling a little over edge these days? It’s not easy to work in real estate!
So since the survey says you’re stressed, see how stressed you really are. Take our job stress quiz.
You’ll learn if your stress levels are beginning to spiral out of control and what you can do to start de-stressing.
By Melissa Dittmann Tracey, Contributing Editor, REALTOR® Magazine
REALTOR® Safety Month is a reminder to real estate professionals that safety needs to be a priority. Everyday situations can be potentially dangerous: You’re meeting with strangers all of the time and often in vacant homes — extra precautions need to be taken.
Have you ever felt your safety at risk while working in real estate? If so, do you carry a safety device with you as added protection? Take our poll below.
By Todd Carpenter, Social Media Manager, NATIONAL ASSOCIATION OF REALTORS®
I’m a big fan of RE TechSouth. It’s a regional real estate technology conference that’s been held in Atlanta every spring for the last three years. As you would imagine, the focus is on Web tools, blogs, online reputation management, and social media. While attending last spring, an agent said to me, “Why can’t NAR be more like this?”
The NAR Annual Conference and Expo isn’t designed to be just like RE TechSouth. There’s a much more diverse audience and a broader assortment of topics covered. Technology is not the only component of a successful career in real estate. But just because #nardigras doesn’t focus solely on cutting edge technology, doesn’t mean there will be any shortage individual sessions and opportunities focused on it this year. Continue reading »
By Robert Freedman, senior editor, REALTOR® Magazine
A piece in the Wall Street Journal yesterday took issue with a recent Time cover story calling into question some of our most cherished beliefs about homeownership. Much of what the Journal talks about isn’t new. In fact, it recites benefits of homeownership that you already know better than anyone. But in pulling them together in the way it does, it makes you realize just how compelling homeownership is from just about every standpoint. If you haven’t seen the piece, by Brett Arends, here’s a thumbnail sketch of its 10 points:
Why is now a great time to buy?
1. You can get a good deal. Prices are down 30 percent on average. They’re at a level that makes sense for people’s income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It’ll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it’s simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It’s risk capital. If the economy picks up, you stand to benefit from that, even if you’re goal is just to have a nice place to live.
8. It’s forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year’s supply. Now’s the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
[Editor's note: To learn about the issues being raised in the media about homeownership, buying today and what the facts are, REALTOR® Magazine is hosting a webinar Tuesday, Sept. 28, at 3 p.m. Eastern Time, with NAR Chief Economist Lawrence Yun and housing policy analyst Howard Glaser of the Glaser Group. Registration link.]
By Robert Freedman, senior editor, REALTOR® Magazine
However you look at it, the upcoming midterm elections in November will be important for real estate.
Home sales and commercial real estate are still struggling, just like the broader economy. So, candidates for Congress, both challengers and incumbants, will have their eyes on real estate.
After the elections, Congress is set to look at what to do with Fannie Mae and Freddie Mac. Flood insurance reforms are still pending. FHA reform is still pending.
More broadly, members will be grappling with what to do about the federal budget deficit. What will they do about taxes? What will they try to cut?
You can be certain what they do with taxes and cuts could impact the environment for selling and leasing real estate, both residential and commercial.
On a positive note, homeownership in important ways remains above the partisan fray. It’s a bedrock values issue for members of Congress. That’s not to say there won’t be pressure on lawmakers to consider changes that could impact homeownership. Anything is possible. But real estate issues start with solid, bipartisan support because lawmakers understand how fundamental homeownership is and how critical commercial real estate is to the economy.
To get an idea of what’s ahead in the upcoming elections, the magazine sat down with NAR Chief Lobbyist Jerry Giovaniello and RPAC Managing Director Scott Reiter (see the 5-minute video above). What they made clear is that REALTORS®’ involvement in the political process is more important than ever because the stakes today are so high.
By Melissa Dittmann Tracey, Contributing Editor REALTOR® Magazine
We’re in the middle of REALTOR® Safety Month, and it’s a good reminder to those working in real estate that, if you’re not careful, it can be a risky business when it comes to your personal safety. I recently asked real estate professionals to share with me situations where they’ve felt their safety at risk and the lessons they’ve learned.
I was amazed at the response! The Real Estate Marketer on Facebook also carried our inquiry and several responses were posted there as well. Numerous real estate professionals revealed dangerous situations they found themselves in, from encountering squatters and thieves at open houses to even being held hostage in a home. (You can read some of the submissions here.)
Whether you’re meeting with new clients, chauffeuring strangers in your car, holding open houses to the public, you can’t afford to take your safety for granted. You need to stay on guard, and make safety a priority.
Read: Real Estate’s 6 Most Dangerous Everyday Situations
It’ll only take you about five minutes to read the article, but if you’re ever faced in one of these situations where you feel at risk, you’ll know what to do.
Also, I invite you to add to our list. What other everyday dangerous situations have you faced that should be added to our list? You can help your peers protect themselves by sharing the safety lessons you’ve learned.
By Robert Freedman, senior editor, REALTOR® Magazine
There’s a lot happening with the REALTORS® Federal Credit Union, so it’s a good time to take stock of where the company is and where it’s going. If you’re not familiar with the company, it was launched about 15 months ago as a REALTOR-friendly financial services company. What that means, principally, is that it underwrites loans to NAR members based on their credit history, not the predictability of their income.
That’s an important distinction from other financial institutions because it recognizes the ups and downs of REALTORS®’ income. As the company’s new CEO, Jane Pannier, told me in an interview last week, REALTORS® who can show they know how to manage their money despite their irregular income make excellent credit risks, and they deserve to be recognized for that.
Pannier came on board just a few weeks ago as CEO. She was previously the company’s general counsel but was asked to head the company after Tom Glatt, its first CEO, moved on. Pannier’s involvement in credit unions goes back decades and includes positions on both the public and the private side. I can’t imagine there’s more than a handful of people in the United States with more experience than her in the business, so it was especially informative to get her views on what’s happening. Continue reading »
By Todd Carpenter, Social Media Manager, NATIONAL ASSOCIATION OF REALTORS®
I admit it. I get to work on some really cool stuff:
Available for the first time in a classroom setting, the new e-PRO® gives you a roadmap to build your business and serve the hyper-connection consumers of today and tomorrow. Learn about the changing market and how to connect with consumers, manage your online reputation, generate leads and gain referrals by signing up for Day 1 of the certification course, offered prior to the 2010 REALTORS® Conference and Expo in New Orleans on November 4, 2010. For more information on e-PRO® and to find a course in your area, visit REBAC.net
Earlier this year, I was lucky enough to sit down with REBAC representatives, a few bright members of the Young Professionals Network, and the Social Media Marketing Institute (SMMI) team to hash out an outline for a ground-up rewrite of the e-PRO® certification program. The course covers cloud computing, Web applications, mobile, online brand management, and, of course, social media. Continue reading »
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