Monthly Archives: April 2011

Business

Your Business in This Economy, Will it Take a Dive, Survive, or Thrive?

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Picture Courtesy of Black Enterprise

by Lisa J. Lehr

Yes, we know. The economy is bad. Recovery may be on the horizon, but no one really knows how close. Or if we can “hold out” till it happens. Yet we can each take some actions to position ourselves in the best possible way to survive a weak economy—and be at the front of the pack when it improves.

Dr. Ivan Misner, founder and chairman of BNI (Business Networking International), the world’s largest business networking organization,says that during an economic downturn “you can actually prosper…while everyone else flounders in fear.” He tells of being at a business mixer in the early 1990s, “right in the middle of a nasty recession.”

As he looked around the room and listened in, he noticed that “while nearly all were commiserating with one another, very few were actually networking and working on seeking new business…,” which, of course, was the purpose of the mixer!

So, while we can’t control the economy, we can control our response to it. Dr. Misner goes on to say, “During the last recession, I watched thousands of businesspeople grow and prosper…because they
consciously made the decision to refuse to participate in a recession. They did so by developing their networking skills and learning how to build their business through word of mouth.”

I’ve heard several people in my contact sphere say they’re refusing to participate in the recession. What if everyone refused to participate? We wouldn’t have a recession!

Dr. Misner concludes, “Don’t let a bad economy be your excuse for failure. Instead, make it your opportunity to succeed. While others are looking at the problems, those of us looking for opportunities
will not only get through a bad economy but will prosper.”

Here are some ideas on ways to find opportunity:

Invite people to meetings of your business or trade group.

Offer to speak at an industry conference.

Send out a mailing.

Begin an e-mail campaign.

Write letters to the editor.

Start a blog.

Submit articles to trade publications and online article sites.

Add an opt-in and an auto-responder series to your website.

If you don’t have a website, get one.

If you need to outsource any of these projects, do it.

Stay in front of potential customers. Whatever line of work you’re in, people still need your product or service. If you’ve made your name familiar to your target audience and established yourself as an expert in your niche, you’ll be the one they go to when they’re ready to buy—instead of your competitors. Your (former) competitors will be the ones commiserating about how the recession of the early 21st century ruined them.

Lisa J. Lehr is a writer and copywriter living in Grass Valley. She
can help you promote your business with a full range of online and
offline marketing pieces. A member of Empire Toastmasters, she’s
available to speak to your business or professional group. Visit her
website www.justrightcopy.com for more information, opt in for the
message series, and receive a free Marketing Guide.

—
Lisa J. Lehr
I write words that make you money–just ask me how.
www.justrightcopy.com
Visit my website and sign up for my fr~ee marketing tips.
New! No~cost Marketing Guide now available at my website.

Real Estate

Regulators Propose Tighter Rules For Mortgage Backed Securities

On Tuesday, U.S. bank regulators submitted a proposal that would require lenders to originate mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books.  The bank regulators say this would create strong incentives for responsible lending and borrowing.

  • The Federal Deposit Insurance Corp. board and the Federal Reserve agreed to seek public comment on the proposal.  However, the rule is expected to have little near-term effect because loans sold to Fannie Mae, Freddie Mac and FHA and VA loans would be exempt.  The U.S. government currently backs nearly 90 percent of home mortgages.
  • The CALIFORNIA ASSOCIATION OF REALTORS® and the NATIONAL ASSOCIATION OF REALTORS® oppose the proposal because the 20 percent down payment requirement is too high and would make it difficult for many people to purchase homes, causing further deceleration in the housing market.  Strong evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk.
  • “We need to strike a balance between reducing investor risk and providing affordable mortgage credit,” said NAR President Ron Phipps.  “Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home.”
  • Saving the necessary down payment has always been the principal obstacle to buyers seeking to purchase their first home. Proposals requiring high down payments will only drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market,” added Phipps.

Read the full story

Real Estate

Russian Investor Paids $100 Million for Home in Silicon Valley

The $100 million sale of a Los Altos Hills, Calif., home shows how some luxury properties are insulated from the U.S. housing slump.
The $100 million sale of a Los Altos Hills, Calif., home shows how some luxury properties are insulated from the U.S. housing slump.

A Russian investor paid $100 million for a 25,500-square-foot home in Los Altos Hills, Calif., which marks the highest price paid for a single-family home in the U.S.

Billionaire Yuri Milner, 49, who heads Digital Sky Technologies and whose investments include Facebook Inc., Groupon Inc., and Zynga Inc., has no immediate plans to move into the French chateau-style mansion and has a primary residence in Moscow.

The $100-million home features views of the San Francisco Bay, indoor and outdoor pools, a ballroom, and a wine cellar.

The high-price purchase is another sign in the growing strength of the luxury real estate market. Sales volume of homes more than $1 million increased nearly 4 percent in February year over year, the National Association of REALTORS® reports. Meanwhile, sales volumes for homes priced between $100,000 and $250,000 have dropped nearly 8 percent.

This marks the highest known price anyone has paid for a single-family home. Investor Ron Baron in 2007 paid $103 million for 40 acres of vacant land in East Hampton, N.Y.

Source: “Home Brings $100 Million,” The Wall Street Journal (March 31, 2011)

For all your real estate needs, call or Email:
John J. O’Dell
Real Estate Broker
O’Dell Realty
(530) 263-1091
Email John at jodell@nevadacounty.com

DRE# 00669941