Testimonials: A Powerful and Free Marketing Strategy

Testimonials are one of the most valuable and cost-effective marketing tools you can have for your business, but only if you follow two important rules. 1) Get the testimonial, and 2) Use the testimonial. The good news is: they are easy to get. All you have to do is ask.

Think of the clients you've had a great working experience with over the past year, and ask for a testimonial. Send them an email with the following request:

"Hey Bill – I know you've mentioned that you've really enjoyed working with me, and I've sure enjoyed the relationship too! Would you mind giving me a short blurb I could use in some of my marketing, so that others can get a feel for the service that I offer? I know your time is valuable, so I really appreciate it – thank you!"

Because it's in email form already, they are likely to take a minute to fire off a quick response to you on the spot. If you don't have their email address, then just give them a call and ask...but make it easy for them. Let them know that you'd be happy to type it up for them if they wouldn't mind giving you a line or two. Ask questions like, "What did you like the best about our experience together?" "What do you remember the most?" "What would you tell your friends or family about me?" then jot some lines down as you talk. Be sure to ask for their email address – which you really should have already – and send it to them for approval. ALWAYS make sure to ask permission to use their comments "in complete or edited form," as well as their name and city.

If you're just getting started in your industry and don't have a wealth of past clients to call on, ask your peers, your manager, or your mentor to write a short personal endorsement. You'll want to replace them with client testimonials once you have them, but in the meantime, any testimonial is better than no testimonial!

To avoid this process altogether, be sure that, from here on out, every time a client makes a great comment about your service, ask them on the spot. "Wow, that would make such a great testimonial line for me! Would you mind if I write that down and attribute it to you?" Then make the notes right away, so you get an accurate reflection of what they said. Additionally, consider building in an evaluation form for your clients to complete at the closing or after an important meeting.

So, now that you have the testimonials, how do you use them? You should have testimonials in all of your marketing. This includes on your website, on your personal brochure, in your presentation materials, and even posted in your office. You can include testimonials on the bottom of your letters and email correspondence. If there is a particularly good story of how you helped someone solve a particular problem, worked through a difficult issue, or really helped them make their dreams come true, don't be afraid to send a postcard or letter out to your database highlighting the story. Once you get in the habit of asking for the testimonial, you'll be surprised at how many you get, and how easy it is to get this powerful, free marketing strategy working for you.

And don't forget, if I can be of any assistance to you or your clients at this time, please don't hesitate to contact me right away.

What's Your Mother's Maiden Name?

Passwords are crucial to accessing your personal accounts and information. The problem is we all have so many accounts that we worry more about remembering our passwords than we do about making sure that they actually protect our data from hackers. Because of this, we end up using passwords like our mother's maiden name or child's first name. But even if you add a few numbers to the end, those types of passwords are easy to break. And that means your data isn't safe.

The following tips can help you avoid the most common password pitfalls and even implement a few new ideas that will make your passwords easy to remember, and hard to break!

Use a random string of characters: That means no sequential letters or numbers.
Make it looooong: The longer the better, even up to as many as 10 to 14 characters.
Switch things up: Use a combination of upper and lower case letters, along with a few numbers mixed in the middle or end.
Don't use substitutes: Using "@" for "a" or "1" for "I" may look good to you, but most hackers are smart enough to break those substitutes rather quickly.
Avoid easy targets: Words straight out of the dictionary or things like family names and birthdays should be avoided.

Most of us cheat when it comes to passwords. We come up with two or three that we can remember and use them everywhere. But you should avoid the temptation. The fact is, once a password is compromised, all of your accounts are vulnerable. There's no way around it. You need a way to create and remember multiple passwords, a different one for each account!

Good passwords come down to two things: they're easy for you to remember and they're hard for others to break. Implementing the tips above can make your passwords hard to break, but what about remembering them – especially if you have a unique password for every account? Here's a sure-fire tip to help!

1. Think up a phrase: Instead of a common word or family member name, think up a unique phrase that only you know. For example, you may think up something off-the-wall such as "I Like Short Hair Too.”
2. Make it an acronym: In our example, "I Like Short Hair Too" would become ILSHT.
3. Add Complexity: Remember those substitutes you're not supposed to use with dictionary words? Well, you CAN use them with your acronym. For example, "I Like Short Hair Too" can become "1 Like $hort Hair 2" which makes: 1L$H2. You can also use upper and lower case letters to make it 1L$h2. The point is to be creative, but in a way that you can easily remember it.
4. Make it unique: A password is only really unique if you use it for one account and one account only. So you can't just use 1L$h2 for every account. And, in reality, it's still too short. Be sure to mix in additional letters and numbers that are unique to each account. For example, if you're logging into a Gmail account, you can use the "Gm" and "@cct" (for acct) to make: 1L$h2Gm@cct. Then, for a Netflix account, you may use: 1L$h2Nf@cct.

Of course, these are just examples. You'll want to be creative and think up your own acronym and ways to add unique characters for each account.

Follow these simple steps and you'll have passwords that are tough to break, unique to every account, and easy to remember!

Lead Follow-Up Campaigns: Never Give Up On a Lead!

You might wonder, "When is a lead no longer a lead?" A lead is always a lead until the person tells you to stop calling. The key to success in sales is professional persistence. Take time to earn the loyalty of prospects by showing them that you add more value to the equation than anybody else in your field. One critical element to remember about a successful lead follow-up campaign is that it should be easy to implement.

Build a series of letters and load them onto your computer. With a few clicks of your mouse, you will generate an outbound correspondence that encompasses your prospective client list and helps them realize that you are sincerely interested in working with them. You must leave an indelible imprint in their mind, which will give you a competitive edge if they have not yet decided with whom they will work. You must rouse prospective clients to wonder:

"What will I miss out on if I don't work with this person?"

Once you motivate the prospect to ask that crucial question, your battle has been won. How can you prompt prospects to ponder this question? It's simple: Teach them! People instinctively want to learn, especially when it comes to "big ticket" transactions like purchasing real property and financing homes. The more you teach them, the more they will want to work with you, so it is important to establish yourself as a consultant.

Many subtle changes occur regularly during real estate transactions that can make buyers feel vulnerable and anxious. They're filled with all types of questions and they look to you as the expert. How do you read an appraisal? What are key components of a home inspection report? What are the various non-recurring fees associated with buying a home? What is tax deductible during the loan process? What are some characteristics to look for when selecting a skilled real estate agent? The list never ends. Draft documents that address consumers' concerns before they even ask.

By maintaining contact with your prospects on a weekly basis using a drip campaign that contains valuable educational material, you will have made yourself invaluable to them. You'll be amazed by how much your conversion ratio from prospect-to-client will skyrocket!

Biggest Credit Myths, Mistakes, and Misconceptions

Good credit is well worth the effort it takes to both achieve and preserve it. If you have good credit, the following tips will help you keep it that way. If you are looking to improve your credit, however, now is the time to get started. Email or give us a call at 678-648-5626. We’ll review your credit and find out exactly where you stand. In the meantime, if you plan on entering into a loan transaction in the next 6 to 12 months, you simply cannot afford to make the following credit mistakes:

Don’t fall behind on existing accounts. This includes your mortgage and car payments. One 30-day late can cost you anywhere from 30-75 points.

Don’t pay off old collections or charge-offs during the loan process. Paying collections will decrease your credit score immediately due to the “date of last activity” becoming recent. If you want to pay off old accounts, do it through closing, and make sure that 1) you validate that the debt is yours, and 2) the creditor agrees to give you a letter of deletion.

Don’t close credit card accounts. If you close a credit card account, it will appear to FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure that it is an account you’ve opened more recently.

Don’t max out or overcharge your credit accounts. This is the fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.

Don’t consolidate your debt onto 1 or 2 credit cards. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on credit card interest rates, wait until after closing.

Don’t do anything that will cause a red flag to be raised by the scoring system. This would include adding new accounts, co-signing on a loan, or changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

Don’t do it alone. If you feel that the credit challenges you're facing are too much, or you don’t have enough time to do the work necessary to improve your own credit, don't lose hope and give up. Email or give us a call at 678-648-5626. We can help. In many cases, small changes to your credit profile could yield big results that could save you thousands of dollars on your mortgage. However, if professional credit repair does become necessary, we'll gladly provide you with a referral to an experienced professional credit repair specialist you can trust.

Marriage and Mortgages FAQs

Q: Could one spouse's bad credit negatively affect the other?
A: If a couple is applying for credit jointly, say for a loan or credit card, then yes. One person's lower score can negatively impact the interest rate the couple will be offered. This is because every borrower has three credit scores, and lenders use the lowest "middle" credit score of the two borrowers. We have seen many situations in the past in which one borrower was dropped from the application – but only if the lower score belongs to a non-working spouse. This can create a serious issue, however, if the income is needed in order to qualify.

Q: Can one spouse's low score negatively affect the couple's chances of securing a mortgage?
A: Yes, if one borrower has negative credit items, such as late payments or a foreclosure, the worst of the two will be taken into account when considering your mortgage application. With a foreclosure, this could mean having to wait up to four years to be eligible for a loan again.

Q: Does the lender use both people as a measure of creditworthiness, or is it possible to focus on the spouse with the better score?
A: In the past, this was possible, but now the lowest score of the two (or however many) people are on the application is used. For example, if two couples buy investment property or a second home, the lowest credit score of those four people will be used to determine the rate (which includes loan-level price adjustments or "risk-based" pricing). This could also include parents that are co-signing a loan for one of their children.

Q: How can credit be repaired or enhanced?
A: If you or your spouse have poor credit, credit repair services may be necessary in order to qualify for a mortgage in today's tough market. If you're thinking of buying or refinancing a home in the next 6-12 months, now is the time to get pre-approved. Email or give us a call at 678-648-5626. We'll do everything we can to make sure you're credit ready. And remember, credit is complex subject which we've simplified here in order to answer these important questions. If you have any additional questions, please don't hesitate to let us know.

Happy Valentine's Day

We didn't forget. How could we? It's clients and associates like you that make us love what we do. If you or anyone you know needs our services, don't forget we're always here for you. Our goal is to make every client feel special. Email or give us a call today at 678-648-5626. We would love to hear from you!

Six Ways to Make People Like You: Start by Liking Them!

The book, How to Win Friends & Influence People*, consistently makes the top five whenever there is a survey of most influential or inspiring books, and is often second only to the Bible. Dale Carnegie outlines - in very simple steps and examples - how to be nice without letting yourself get walked on.

The section titled, Six Ways to Make People Like You, reveals six traits kind people of the world share:

Become interested in other people. Note that he doesn't say “show interest,” but rather "become interested” - change yourself for real, rather than practicing handy habits. Especially in business, it's critical that we learn to see prospects as people rather than as sales.

Smile. There's probably nothing so positive and contagious as a simple smile. If you have trouble smiling sincerely, get your mind out of the dumps and think about something that will make you smile.

Remember that a person's name is to that person the sweetest and most important sound in any language. If you are not a pro at remembering people's names, become one. If your mind is dividing people into “important” and “not as important”, remembering only those names you value, you're at an enormous disadvantage - in addition to being a snob.

Be a good listener and encourage people to talk about themselves. Most folks don't need much encouragement, but those who do will likely thank you for such a great conversation.

Talk in terms of the other person's interests. Reignite your childhood curiosity, and ask questions! When possible, learn in advance what their interests are and spend a few minutes each day researching those topics so you have something to discuss the next time you chat.

Make the other person feel important - and do it sincerely. Notice the talents and abilities of others. Show gratitude to the grocer for not smashing your bread. Admire the speed of the clerk at the DMV. If you can't find something complimentary about another person, you're not looking hard enough.

I hope Carnegie's tips serve as a reminder for how you can make the world a better place.

*How to Win Friends and Influence People, by Dale Carnegie, ©1936, Simon & Schuster, Inc.

Ways to Improve a Credit Score

With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.

If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.

Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.

With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.

There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.

Email or give us a call for more ways to improve your credit score!

The Clock is Ticking...Extended and Expanded Tax Credit Expires 4/30/10

For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know: 

Tax Credit for First-Time Homebuyers (FTHBs)
FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What Are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

It's also important to note another upcoming deadline as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program, which the Fed once again emphasized in its January 27, 2010 Rate and Policy Statement will end on March 31, 2010. As the Fed's program winds down and ends, rates could rise over time since MBS will have less support from the Fed.

If you have any questions regarding the tax credit, email me or pick up the phone and call me at 678-648-5626. I'm here to help you take advantage of one of the greatest opportunities homebuyers may ever have.

The Key to Creating Intimacy: Use a Concierge Form

Superstar REALTOR® Terry Moerler has clients fill out a concierge form at home, prior to meeting with them. This helps her better understand those prospects and target their hot buttons. It affords her an opportunity to probe their minds, know their likes and dislikes, and then meet their needs with efficiency.

The more you know about your clients' needs, the better you can adapt your presentation to exceed their expectations. But you must implement a system for gathering this information up front. After the initial information is obtained, you and your team members must collaborate in an effort to collect additional facts. This fact-finding mission forms the foundation for database marketing.

Never presume to know your clients' definition of great customer service. It is more useful to ask what they are looking for and then try to meet those demands. Below are some questions to ask your clients up front:

• Is your existing financial philosophy conservative, moderate or aggressive?
• How many children do you have, and what are their ages?
• When is your birthday, and when is your spouse's birthday?
• What is your favorite type of wine? (Red or white, sweet or dry, American or imported?)
• What is your favorite cuisine?
• What are your hobbies?
• Rate on a scale of 1 to 10 (10 being best) your existing CPA relationship.
• Rate on a scale of 1 to 10 (10 being best) your existing financial planning relationship.
• Rate on a scale of 1 to 10 (10 being best) your existing relationship with your mortgage lender.
• Rate on a scale of 1 to 10 (10 being best) your existing insurance situation.
• Do you currently have a Will or Living Trust?
• Do you currently have a college education fund established for your children that allows you to grow your money tax free?

Imagine the tremendous marketing value of knowing intimate details of your clients' needs and circumstances!

Know the Score: Three Steps to Better Credit

If you are looking to buy, invest in, or refinance real estate now or in the coming months, your credit is going to play a more significant role in today's tight-fisted credit environment than it has in the past. It's that simple. Would-be borrowers need to address any and all credit issues now to avoid having to pay for it later.

But, here's the kicker. Nearly 80% of all credit reports contain errors of some kind. Recent studies also indicate that about one-fourth of these reports contain mistakes so egregious that applicants could actually be denied credit! Don't let this happen to you.

Step One: Get Your Report
The three main credit bureaus, Equifax, Experian®, and TransUnion®, are required by law to provide you with a free copy of your credit report once every 12 months. To request your free copy (one from each company) visit AnnualCreditReport.com or call 1-877-322-8228. (Note: free credit reports do not include credit scores. Scores can either be purchased online or pulled by your mortgage professional.)

While you're online, be sure to visit www.optoutprescreen.com as well. This will help you avoid the hassle of becoming a "trigger lead" and being bombarded with unsolicited mortgage offers, and make life a lot easier throughout the mortgage process.

Step Two: Report Inaccuracies
Study your credit reports and make sure everything is accurate. If you do find any discrepancies, you can legally dispute mistakes or outdated items for free. Once notified of a mistake on your report, a credit bureau has thirty days to investigate and respond. If the information can't be confirmed, then the item should be removed. (If you'd like more information on this process, give us a call. We'll send you our Sample Dispute Letter to help get you started).

Step Three: Meet With Your Mortgage Professional
Now that the information on your report is accurate, what if there are still some items in your credit history you would rather forget about? All is not lost. For some, small changes to your credit profile could yield big results that could save you thousands of dollars. For others, enlisting the services of a professional credit improvement company may be required. This important process can take up to six months or more, so don't wait.

Email or give us a call at 678-648-5626. An experienced mortgage professional can share other insights into the ins and outs of credit scoring and credit repair.