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CONTACT WALTER

559 S. Washington Ave., Kankakee,IL 60901

P.815.929.9258 P.815.929.9200

walter@waltersanford.com

The gifts of giving with love to others with return to you a hundred fold. Thank you for a new level of life. Terry Murphy, Real Estate Speaker

READ WHAT OTHERS SAY

It Is Time to Pull Out Those Sanford System Investment Formulas and Start Getting Rich! August 25th, 2009 | Posted in General Real Estate

Below is a recent inquiry about my investment program, and I thought it might help others in getting started on their investment portfolio in the best time EVER to start!

Question:

Hi, Mr. Sanford. I was hoping you could explain further your analysis method to me. I read this in an article and am interested in investing but am not sure I understand completely. You wrote:

The analysis is fairly simple. Imagine what you can get the income to in about 6 months. Use a 35% expense factor. This expense factor is high to most investors, but I have found it to be more realistic. Subtract this expense factor from the proposed income to find what is left over to pay principal and interest. Next, work backwards to see how much of the loan this payment will pay off with the current interest rate. Take the loan amount and divide it by the inverse percentage of the down payment you are going to use. This gives you the sales price. Using a digital offer form with a nice cover letter, E-mail the offer to the listing agent.

Is there an example you could give so I could better understand? The part I get lost on is working backward and then you say to take the loan amount and divide by the inverse % of DP to get the sales price. I am just unclear and would like to understand better. Thanks and God bless.

Stephen P. Reddell

Answer:

Once you find the loan amount that 65% of your income will service, you figure the inverse of your down payment which would be 80% if you were putting down 20%. Then take your loan amount and divide by .8 will give you the sales price to offer. Good luck! All the rich people in the next ten years will have bought today.

How Do You Handle Office Misunderstandings? July 1st, 2009 | Posted in General Real Estate

Getting along in an office can be frustrating. You have so many considerations. Even though you may be right, you must consider the damage to the relationship you have with the other agent in the office, with your broker, and the other agents in the office. Don’t forget your client who might hear any negative news, too.

You need the people in your office to handle those incoming inquiries about your listings, send your buyers to you without any side trips, and tell your sellers that all is being handled efficiently. These other agents are ambassadors to your business while they have no stake in your business so you have to get along with each other!

Recently, one of my coaching clients had an amazing “discussion” with an agent in her office. The names have been changed to protect the guilty and innocent, but the circumstances are amazing.

How would you have handled this nightmare?

Suzie: “I cannot tell you how floored I was to see the commission split at closing. It certainly does not create good will from your fellow agents here at the office. You are quite right that you marked special conditions, but since no one else within the office had ever done this to me, I did not ask any questions. I would hope that you will reconsider this as I had no idea and feel that you should have made me aware, rather than surprise me.

It absolutely is my fault but I had no reason to think it would be anything but a 50/50 split. I turned the closing in and asked the secretaries if ANYONE else within our company did this, and they didn’t know of anyone else doing that. We should all strive to sell our company listings and getting a 50/50 split is the best part. I respect your professionalism and think you do a great job. I try to do a good job as well and it would be nice to be compensated equally.”

Mary: “I am sorry that you were surprised at the commission split. You did do a great job on this transaction, and I enjoyed working with you. When we came to this new company, this policy was explained to us in depth. We also have received Emails from the broker outlining the special conditions and how it works. My partner and I do use the special conditions in most of our listings. While we always try to offer a 2.4% commission, we do not always offer a 50/50 split. We do spend a great deal of money on advertising, assistants, and other services for our sellers. I did speak with our office manager, and she tells me that several agents do enter special conditions on their properties.

Again, I am sorry for the confusion. It was never my intent to be anything but upfront and honest by checking special conditions and making in house agents aware of the commission offered on this property.”

Suzie: “In explanation, I always hate to put personal info into it, but my son is very ill. He has cancer. He is going to a trial procedure in Utah where they remove all his bone marrow and stem cells, and basically kill him and hopefully bring him back to life. That is where the money was going from this transaction. He will be in ICU for 2-3 weeks and possible good results or death. It is a tough place to be as a parent. That is why this was so important to me. Just wanted you to know I wasn’t being greedy.

In case you don’t believe me, ask anybody that knows me. In this particular incidence, you did not have to spend any advertising dollars, brochures, etc. I again ask for your consideration this one time. Insurance does not participate in this trial.”

My suggested response from Mary: “So, where does this leave me? Bad business practitioner or a monster? Neither is acceptable or true. If you would graciously accept my effort to start an office fund for your son, I will put in the first $500 and distribute a pledge form to all the agents and management in this office for his help. If you would be so kind to outline more information about him, like his name, hobbies and accomplishments — I will draw up a cover letter and make a pledge form to submit it through the office this week, showing that I was stepping up with $500. Maybe we can exceed your expectations. Please let me know.”

I will let you all know how this ordeal ends. Being adept at handling office conflict can really make the environment a better place for all.

I Always Loved My Board of REALTORS June 17th, 2009 | Posted in General Real Estate

I never understood all that complaining about yearly dues.  The legal help lines, the continuing education opportunities, the store, and the new technology were all items that I used every year.  Don’t forget about the Christmas Ball, too! 

In the last couple of years, I have had the opportunity to work with some of the most progressive boards in America.  We have been getting calls from boards and associations asking for non-CE credit courses to help their members move out of low production by implementing tough market systems. 

There is nothing wrong with continuing education credit seminars, and I do those all the time.  However, the state real estate departments are strict in monitoring which seminars receive credits and which do not receive credits.  They have regulations that require continuing education credits only be given to agents who attend seminars that teach them to do better jobs for their customers.  Contracts, fair housing, architecture, and ethics are all necessary ingredients to a safe, fruitful, and client-pleasing career. 

The other day, I spoke with an executive officer who said, “My agents need to learn how to list more, sell more, price better, and get paid for their hard work!”  She went on to say, “If they do not start making money, they can not give the service that their clients deserve, because they start cutting corners!” 

It is true that an agent who is desperate for money is more likely to lie and manipulate a transaction for survival rather than putting his or her clients first.  Putting the client first is one of the most fruitful ways to increase future business; however, an agent might not consideration that if he or she is trying to pay the bills. 

Executive officers are stepping up all over the country to provide the training that their members need.  I am getting the greatest requests for the following:

  • How to build listing inventories
  • How to manage buyers
  • How to make faster and more successful listing presentations
  • How to use personal websites to attract more sellers and fewer buyers
  • How to separate myth and reality of social networking
  • How to build low-cost teams and make an assistant profitable
  • How to get over the fact that you don’t have an REO account
  • How to turn down 50% of short sales
  • How to buy at the bottom to become rich at the top

These seminars are not always granted continuing education credits.  The EOs are telling me that their membership is taking the required courses online or from many speakers like me who are licensed to provide continuing education.  However, the great demand from the agents is for tools that are not covered in the CE courses.  We are seeing a rush to provide these tools for boards and associations across North America.

Executive officers spend all day determining what is best for their membership and the new trend is providing seminars where the speaker talks about how the agents can make more money now by using smart business systems.  The emphasis is being taken off the regulatory type seminars.  I hope you never complain about the dues again.  They just may save your business!

Bail Yourself Out June 16th, 2009 | Posted in General Real Estate

Our company came up with this quick to give you a glimpse of what associations, boards, and companies are looking for in a speaker.  If you are in a position of leadership where agents depend on your decisions for training, I hope you have a chance to read this note.  Thanks for the support from all my friends and associates. 
For the most part, real estate agents have been hit hard.  Most were not prepared for a “different” market.  Most are still operating under unprofitable assumptions.  Their brokers, companies, franchises, and associations offer positive reinforcement to motivate or generate activity from the troops; however, they need and want tools that are easy-to-implement, inexpensive, and fun. 

Walter Sanford has been through tough markets — one in the early 80’s, another in the early 90’s, and now.  He was one of the most successful REALTORS® in North America.  Financially independent from his commissions earned in tough markets, Walter is one of the few trainers that the top agents turn to in tough times. 

Tough times do not last; neither do agents who continue to do the same stuff.  Recoveries can be long, years, in fact.  If agents do not start doing the “right” activities now, it will be hard for them during the next boom to have the needed resources to take advantage of all the business.  One of the most exciting times in real estate is when “doing” real estate becomes en vogue again.  The buyers need to get involved in real estate, and the sellers have not yet become greedy.  Will your agents be ready?  Will you be ready? 

Below is a “hit list” of the items for which Walter receives the most “thank you” notes.  Walter will present his best tactics to help the agents bail themselves out in a seminar that you can afford.  This will be the items that are working now, things that your agents will do, and things that your agents will thank you for later.

1.  Learning why there are more profitable avenues to pursue now if you don’t already have an REO business

2.  Facilitating short sales in a more efficient manner and learning which ones not to take

3.  Implementing five new systems that can double any agent’s listing inventory or seven new systems to triple their inventory

4.  Using your listings to generate buyers and using your personal website to generate sellers

5.  Doing your social networking in less time with more results.

6.  Applying simple systems that generate more double-ended transactions

7.  Knowing how to write contracts “with glue” when the buyers are nervous

8.  Showing you how an assistant can earn five times his or her salary for you; if you don’t have an assistant, showing you how to get a team for FREE

9.  Beating the competition every time with a listing presentation that earns you 1% more than the going rate, includes a transaction coordination fee, and is delivered in much less time.

10. Developing the exact plan for buyers to be worthy of your time giving you the tools to close a buyer over 90% of the time

11. Giving more to buyers and sellers without spending more

12. Handling all incoming calls, all outgoing calls, all E-mails, and all regular mail in two hours a day and having your clients love it.

13.  Using a leveraged business plan so that buyers create sellers, sellers create buyers, and buyers and sellers create investment properties for you. 

14.  Getting your clients excited about your inexpensive but high-perceived value services and getting them to help you sell their property

15.  Learning the exact letters, scripts, and systems that work now

Help your agents, associates, and members.   Involve your affiliates as sponsors or have a trade show.  Use this seminar as a recruiting device.  We have several ideas on how to make a seminar affordable, fun, and profitable.

It is important to motivate the troops, but they do need the tools to “march forward” on their own.  This market requires that new systems be implemented for the self-directed bail out.

The seller must understand that pricing is 95% of marketing and the best way to obtain their desired net. June 9th, 2009 | Posted in General Real Estate

Many agents actually try to spend marketing dollars to overcome an overpried property. It is a question that I am frequently asked. Most of the items in the answer are items the seller has to be responsible for. They cannot depend upon false pricing or marketing from a REALTOR to obtain a value that is not there.

Question:

Good morning, Walter. What are the “Twelve Secrets of Selling Your Home at Above Market Prices?” Thanks!

Robert Hicken

Answer:

Great question! I assume that you read that somewhere in one of my writings. Even though we all know the answers can be personal to the agent providing the marketing, I’ll do my best to give you some direction.

1. Price the property to be the most competitive to attract every buyer in that demographic.
2. Remove clutter, huge collections, and personal items that are necessary to the current owner’s life but not necessary to the potential owner’s life.
3. Repair obvious problems in the major systems. Get a post-listing inspection report and have the work done now rather than waiting for a nervous buyer to make their choices.
4. Provide easy access to the property. Anything less than a lock box with a warning call prior to showing will reduce showings.
5. Offer a 10% second to assist in the financing.
6. Follow-up assertively and determine why offers are not being written after showings. Express those concerns to the seller with solutions.
7. Make sure the features and benefits of the property are compelling and are expressed to the agents who have had a sale in area or price range in the last 2 years. Do this on a weekly basis.
8. Implement an effective SEO strategy that allows the world to find the home. Once the home is found, present a quality “showing” that will elicit REAL showings.
9. Offer “secret property” to your database to create buzz, prior to the listing hitting the MLS.
10. Add one value enhancement to the property for every week that it does not sell.
11. Put together 10 financing packages to show buyers that they can creatively obtain the keys to this new home.
12. Call your team member, the seller, religiously once a week and be straight with them. No showings in two weeks equals another price reduction or value enhancement. No offers in one month equals a price reduction or value enhancement.

If you can answer why price reductions in a tough market actually increase many seller’s nets, then you have made it.



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