How to Start a Foreclosure Cleanup and Property Preservation Company

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

A new article on June 3, 2009 from MSN Money writer Michael Brush indicates that there is a third wave of foreclosures still to come from prime borrowers (ie those previously "safe-borrowers" with sound credit and fixed-rate mortgages) as a result of job losses thanks to the worsening economy ("Coming: A 3rd Wave of Foreclosures").

The article states that "In the first quarter, the percentage of these borrowers who were behind on their mortgages or in foreclosure had doubled from a year earlier, to nearly 6%" and goes on to say that "Credit Suisseanalyst Rod Dubitsky predicted last week that 8.1 million mortgages, or 16% of all mortgages, will go into foreclosure over the next four years. A weak economy, continued declines in home prices and rising delinquencies among prime borrowers all but ensure that foreclosures "will march steadily higher," he says. " Not such great news for the economy, but good news indeed for entrepreneurs interested in starting a foreclosure cleanup business to clean and repair foreclosed homes for the banks.

To put this in perspective, this means that there will be over 2 million foreclosures a year and more than $ 2,025,000,000 up for grabs in money that will be spent on cleaning up these foreclosed properties (since the average bill is $ 1000 + to clean up one of these properties).

Let's take a look at how you can position yourself to capitalize on this coming foreclosure movement

Set Up Your Company Properly

If you want to be hired for cleanup or preservation work, you'll need to operate your business as a professional company. The good news is that you can set up a business quickly and inexpensively, and usually on your own. Many people decide to set up an LLC (Limited Liability Company) because of how quickly and easily it can be done but you'll want to check with your accountant or other business professional to select the type of business entity that's right for your personal situation .

If you do decide to start an LLC, you can usually find all of the documents you need online from your state's government website. Usually the branch you're looking for will be called the "Industrial Commission" or "Corporation Commission" or similar. Try typing in "start a business + ______ (your state)". Anything ending in ".gov" is usually a good place to start as it indicates a government site.

Once your business is set up, you'll need an Employer Identification Number (EIN), which is like a SSN for your business. You can register for one online: type in "IRS" & "EIN" into a search engine to find the online registration link.

As soon as you have your EIN (which you can usually get immediately online), you can open up a business bank account for your company. This step is very, very important. In the excitement of things, many people get caught up in the day-to-day dealings of running a business and use their personal accounts to pay for business expenses. Not only does this present an accounting nightmare at the end of the year, but it could present problems for you with the IRS if you don't keep your personal and business finances separate.

Once you legally set up your business, you may be required to register your business with your county or city in order to get a business license to operate. You can start by calling City Hall or the Office of the County Clerk to inquire as to whether or not you need a city / county / state business license and if so, how to get one.

So to recap:

1. Legally set up your business
2. Get your EIN # and set up a business bank account
3. Apply for a business license
4. If you want to do preservation work, determine whether or not you need a contractors' license

Get Insurance

You absolutely must have a Commercial Liability Insurance policy and Workers' Compensation Insurance in order to run your business. Not only is insurance essential for protecting yourself from liability and protecting those that work for you in the event of a work-related injury, but many asset management companies will not do business with you if you do not meet their minimum insurance requirements.

Insurance will likely be one of your largest start-up costs, however, most insurance companies allow you to pay the premium on a monthly (rather than yearly) basis, which definitely makes this expense more affordable.

General Liability Insurance policies can cover the following: bodily injury, property damage, contractual liability, personal and advertising injury, professional liability (also known as Errors & Omissions (E&O) insurance, this coverage protects you and your business from litigation caused by charges of professional neglect or failure to perform your professional duties), hired auto and non-auto liability and umbrella liability.

You'll want to speak directly with your insurance agent to get a better idea of ​​the extent of the coverage provided by their particular policy and one that is best suited for your individual needs

Workers' Compensation Insurance is required in most states when you have W2 employees, and some states also require your insurance to cover your 1099 contractors also. Workers' Compensation ("Workers' Comp") covers your employees' medical and disability expenses related to work-related illness and on-the-job injuries.

In the states where you are not required to cover your 1099 contractors you would need them to provide proof that they carry their own Workers' Compensation insurance. Although tempting to shift the financial burden of maintaining a policy onto your 1099 contractors, in all reality, you are probably better off to take on the cost of all staff Workers' Compensation (all W2 employees and 1099 contractors). The reason is that it's difficult to find only independent contractors that have their own policy. In addition, this industry has such high turnover that if you put this restriction on your independent contractors, you'll waste valuable time and lost revenues trying to find replacements in a hurry.

Here's a great tip: sometimes you can get "pay-as-you-go" insurance where your workers' compensation insurance premiums are based on your actual payroll, rather than an estimated amount. This is great for companies that are just starting out or have a fluctuating workload. Type in "pay as you go workers comp" into a search engine for results in your area.

As a second tip, we've used Farmers Insurance for years and have always had excellent customer service and great rates. Just Google "Farmers Insurance" for an agent in your area.

Foreclosure Cleanup vs Property Preservation Services

As the name suggests as a Foreclosure Cleanup Company, you'll be cleaning out all of the junk in the house (also called a "trashout or a" junk out "), as well as cleaning the interior of the home. be required to remove vehicles on the property.Usually foreclosure cleanup companies are also responsible for doing a basic landscape cleanup which includes hauling out any junk from the front / back yards, cutting the grass and trimming trees / bushes.

Cleaning up the property is the extent of services offered by a Foreclosure Cleanup Company, whereas a Property Preservation Company is also involved in the "securing" of the property and the "preserving" of the property.

Here are some of the services that a preservation company may offer (note that a Property Preservation Company will generally also offer cleanup services):

Securing the Property
o Initial vacant property inspection
o Lock changes
o Boarding of windows and doors
o Temporary roof repair
o Securing swimming pools

Preserving the Property
o Exterior Debris removal
o Abandoned vehicle removal (cars, boats, etc.)
o Interior Debris removal (junk-out)
o Hazardous waste removal
o Interior cleaning services including carpet cleaning
o Window washing / graffiti removal
o Window replacement
o Pool services (draining, acid washing, maintaining, etc.)
o Pest control services
o Yard maintenance / landscaping
o Snow removal
o Winterization
o Gutter cleaning
o Pressure washing
o Carpet removal & replacement
o Tile / Floor repairs
o Painting
o Sheetrock / drywall repairs
o Carpentry repairs
o Plumbing fixtures repairs & replacements
o Fire & mold remediation
o Fence repair

Here are a few things to consider when determining the extent of the services you want to offer:

A Contractors' License is generally not required for Foreclosure Cleanup Company but is likely required for preservation companies doing work over a certain dollar value (usually $ 500 – $ 1000 +). Sometimes this license can be obtained by attending a course and successfully passing a test whereas other states require previous, verifiable industry experience.

The insurance premiums tend to be higher on companies that offer preservation services as they are considered to be a "general contractor". However, the revenue potential is much higher as preservation services tend to run from a few thousand dollars upwards instead of $ 800 – $ 1500 for each cleanout.

Usually what people do is start out initially offering just the foreclosure cleanup services and then when things pick up, they'll add preservation items to the list of services they offer. This let's them get their foot in the door without having to spend a whole lot of money upfront when setting up their company.

Source the Right Equipment & Tools

The great thing about starting a foreclosure cleanup company is that the initial expenses are quite low as much of the equipment and tools needed for cleaning foreclosures can likely be found in your own garage:

o Cleaning chemicals (ie all purpose cleaner, disinfectant, toilet bowl cleaner, window cleaner)
o Cleaning supplies (broom, mop, scrub pads)
o Vacuum cleaner
o Garbage bags and shovels
o Work gloves and disposable plastic gloves
o Lawn mowers & lawn tools
o Wheelbarrow

For the smaller items you don't have on hand, check your local dollar store. Their prices can't be beat and they usually have the same chemicals and cleaning supplies as the other retailers. Once you start doing some volume, consider shopping for your supplies at Sam's Club or Costco to keep your expenses low.

You can also find used equipment in great shape (such as vacuums) by going around to your local Saturday morning garage / yard sales. If you have a "Re-Use" center or a Salvation Army, you may consider checking there also as they often have vacuums and other small equipment or yard tools for sale.

For hauling junk, you'll need some sort of trailer and a vehicle large enough to pull it. If you don't have a truck and a trailer, you can always borrow a friend's truck and rent a trailer from U-Haul or just go ahead and rent a moving truck from U-Haul. (Remember though, that you'll be charged a daily rate plus a per-mile rate when you rent a moving truck whereas if you use your own truck and just rent the pull-trailer, you'll only incur the daily rental rate for the trailer.)

Sometimes you'll be required to clean a property that doesn't have electricity or water. In the event that there's no electricity, you'll need a generator to operate the vacuum cleaners and other electrical equipment. These can be rented at Lowe's or Home Depot and is a much better alternative to purchasing one outright unless you're going to use it on a regular basis (a new one will run you about $ 500 +).
To save on expenses, it's best to rent equipment in the beginning.

Once you get up and going, it may be worth looking into purchasing equipment of your own. Check the online classifieds ads (such as Craigslist, Kijiji and Backpage) for used trailers, generators, etc. You should also check with U-Haul as they have been selling some of their excess trucks as of late.

Stay Safe on the Job

As a business owner, you're responsible for keeping your staff safe while working on the job. Working safely is paramount to the health of your staff and the reputation of your business (and also keeps your insurance premiums low). It's imperative that you review safety issues prior to allowing anyone to work on the job – you must provide both classroom and on-the-job safety training to all new hires.

Now, it doesn't have to be anything fancy; you can spend 20 – 30 minutes reviewing safety policies, safe working practices and answering any questions and then you'll be done! Make sure you have people sign in and out of the meeting and that you document that a safety meeting took place.

It's also very important that you become familiar with OSHA and Safety Standards as well as the health & safety hazards associated with this industry so that you can keep your staff safe, avoid accidents and costly fines. You can find the OSHA Pocket Guide to Construction Safety (it's a short and an easy read) at the main website (OSHA DOT gov) by searching for the report name.

Another way to protect your staff and your business is to make sure that you check references before you hire someone. Insist that they list non-related references (ie not mother, sister or best friend) and instead list references of previous employers or someone they know in a professional capacity. We also do drug testing and background checks – it might sound paranoid to some, but the safety of our staff, our customers' property and our company's reputation is far too important to risk not spending $ 20 on a background check or drug test.

Price Your Services Right

In this industry, the lowest price always wins the bid (unless, of course, the lowest bidder has a terrible track record of not completing work and is utterly irresponsible and unprofessional, in which case the company has just committed "reputation-suicide" and will never be hired again). Lenders don't want to spend any more than they have to on these properties so you want to make sure you price your services comparable with the going market rates (but at the same time, priced so that you still make a great profit and don 't leave any money on the table).

For cleaning out foreclosures, most banks expect to spend anywhere from $ 500 – $ 1500 for a cleanout (trashout, interior clean and initial landscape cleanup), but it could be a bit more or a bit less, depending on your area. It's important to know that most lenders have prescribed "price caps" for the maximum amounts that they'll pay for services.

If you're also providing preservation services, a great site that we've used before to determine our prices for doing repairs is www.CostEstimator.com for getting the market rates for construction costs – you can get a free 30 day trial (no need to enter credit card – it really is free!). There are over 3,000 cost items adjusted for over 210 local, geographic regions to create your bid and you can add as many others as needed. If you want to sign up after the trial, it's only $ 15 / month.

Market Your Services

It's true – "nothing happens until somebody sells something" … and you'll need to get out there and sell, sell, sell your business. Once you've done a few jobs, you'll find that word of mouth advertising and referrals will provide a large pool of new jobs for you, but in the meantime, you do need to do everything possible to let customers know you exist.

A large portion of work will come from the relationships that you build with Real Estate Agents ("Realtors") who list bank-owned homes (often referred to as REO listings). They are often given the task of bidding out the cleaning and repairs of new listings by the asset management company so you'll want to make sure the agents in your area know your company handles this type of work.

A great way to find out which Realtors in your area list REOs is to go online to the major bank's REO websites and "data mine" the contact information for the listing agents (name, email, phone numbers). It can be painstaking work, but definitely worth it.

Here's an example of a bank REO sites to get you started collecting Realtor information

WELLS FARGO (Properties managed by Premier Asset Services): pasreo.com/pasreo/images/pas_logo.jpg

NOTE: In order to access agent information, select the state and click search. Then, individually select each listing and click on "Print Property Report CVS". Each listing and corresponding information (such as agent name, phone # and email) will be created in an Excel spreadsheet. You can access the page

Remember to follow up with a phone call a few days later. Don't be shy about asking the Realtor if he / she has any jobs for you to bid, either – most of them are very accommodating and willing to give a new company the opportunity to provide estimates.

The other way jobs are bid out is through large Asset Management Companies (also referred to as Marketing & Management Companies, REO Field Service Companies and Property Management Companies). Essentially, the lender says, "ok – I have thousands of properties to get rid of. Here, national ABC Asset Management Company: clean, fix and sell these properties for us". And the national Asset Management Company will then subcontract out the work to local foreclosure cleanup and property preservation companies. In order to work for these companies, you usually need to sign up your company as a potential vendor. Many times this can be done online.

There are both positives and negatives associated with working for the larger companies. On the positive side, you will probably be given a few projects to work on at a time so you will be kept relatively busy. On the negative side, they usually want you to offer 'wholesale pricing' and don't pay until 30 – 60 days after you invoice them for the work. Working for one of these companies, however, will give you the experience you need to go after more work.

Other possible customers include wholesale property investors (groups of investors that purchase foreclosed homes at the auctions and then sell them to smaller investors at a wholesale price), investors, landlords, property management companies, Realtors and so on.

You should also consider attending your local networking events such as the Chamber of Commerce meetings and any local investor meetings in order to hand out your card and network with potential customers. The more you get out there, the better chance you'll have of securing some great, long-term customers!

This is definitely an exciting industry and a very profitable one for those of you who don't mind getting your hands a bit dirty! Good luck!

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Les Tyler

Get a Used Fifth Wheel RV For Dimes on the Dollar – Here's How

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Everyone loves a great deal. For the true bargain hunter, it's almost like a mission. They search high and low to find the very best price on the items they need. Some people, however, don't have the time to spend on hours of research. They would rather have the information gathered for them. If you're looking for used fifth wheel RV and you won't buy one until you find the best price, then here's some information to help you!

Repossessions

Repossessed RV's are sold for dimes on the dollar. The finance companies do not want to pay for storage and many are simply hoping to recoup some of their investment. While some are damaged, many are in great condition, as many people lose their RV's within just a few months after purchase.

Seizures and Surplus

The federal, state, and local government agencies all seize property for a variety of reasons. Some are for criminal activity, while others are for back taxes. After a specified period of time, these items, including RV's are sold at auction to the highest bidder. Many will also sell repossessed RV's, which is where the dealers often find stock.

Many of the same agencies also sell their surplus at auction, as well. FEMA, for example, is currently selling 10s of thousands of campers and trailers they previously stocked for hurricane relief. Some of RV's maybe in salvage condition, but many others have years of life left in them. The key is knowing where to find the auctions.

Buying from the Government

It's not as difficult as you might think to purchase a used fifth wheel RV at one of these auctions. You simply place your bid up to what you are willing to pay. Many of the RV's start out for as little as $ 100. If your bid is the highest, you win, just like in any other auction. It's up to you to get the RV home.

There are websites that offer listings of all the government auctions across the country. You can search by location, date, or by the items listed for sale. It's a great way to see what is available. Some of the sites will even send you updates as new auctions are listed. If you are ready to purchase a used fifth wheel RV, a government auction should be your first destination.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Michael Drover

Eleven Key Attributes of a Good Property Manager

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Property Management is a career profession. The industry allows for employment growth, continual learning experiences, and the opportunity to work with diverse people and income groups. The Property Manager can work either directly for an owner of real estate properties, or for a property management company, contracted by an owner or legal entity to care for the real estate over a specific period of time.

The Property manager has a fiduciary relationship with the management company and property owner. A fiduciary relationship is one that is based on a mutual trust and complete confidence in one another.

The Property Manager is provided an owner's real estate portfolio to manage to its "highest and best use" in exchange for an employment contract or salary. Real estate assignments for the property manager includes apartment buildings, condominiums, hotels, storage facilities, shopping centers, office buildings, government subsidized properties, rooming houses, abandoned buildings and plots of vacant land, to name a few.

I have managed almost all of the above types of properties for over twenty years. I have managed public and private housing, for non-profit organizations, for the federal government, and for private developers and real estate investors. I also owned my own property management company for eight years. I now teach, speak, and write about property management standards and techniques. Here are some crucial skills, which I know from first hand experience, must be accepted as required attributes and learned skills in order to be a good property manager.

1. Must Know and Stay Current on Local Ordinances and State Laws

Managers are required to perform their work according to the laws of the land. The government (city, state, and federal) dictates how real estate is to be managed, from requiring a real estate license (depending on the state), to the use of the real estate (such as rent control laws). From proper trash removal to how and where we must keep security deposits, the manager has to keep abreast of the many legal requirements of managing real estate. If a mistake is made or a task is forgotten, it could cost the owner his or her property, and / or a management company's reputation, loss of the account, or even the loss of real estate licenses.

2. Must Be Highly Ethical and Honest

Property Managers work on the Honor Code when they handle other people's money. By collecting rent, security deposits, laundry machine money et al, the property manager holds a fiduciary relationship with the property owner and / or management company. The owner entrusts the property with thousands of dollars each month, plus the value of the real estate itself. The manager is hired to perform at his or her highest level of integrity. On a daily basis, the property manager's good judgment and sense of what is right and wrong is called into play.

3. Must be Detail Oriented and Organized

Managers collect the rent daily, and must ensure that each rent is paid and posted to the tenants' account as received. Financial records detailing each and every rent transaction are kept, either by rent cards, or on the computer. Lease expirations and renewals, rent increase letters, and rent invoices must be mailed on time. lines for court appearances must be kept, and clients must receive their written monthly report of operations. A skilled property manager is able to multi-task, keep site files organized, and prioritize repairs and assignments.

4. Must Have Good Communication Skills

Managers must be able to communicate with people from all walks of life, cultures, ethnicities, and personalities. Managers must be able to articulate their cases in front of judges, talk to the owner, negotiate with vendors as well as speak appropriately with tenants, who are often frustrated, upset, or angry. A good manager must be able to stay calm, and communicate in a professional manner. Familiarity speaking in other languages ​​is always a plus.

5. Must have Good Computer Skills

Computer competency is a technical skill, like driving, typing, etc. The use of email, mail merge, and faxing through the computer is at the heart of property management today. This is especially true if the property is on one part of the city or state, and the home office is a distance away from the site. If a manager does not have a solid command of the computer and its basic programs, such as Microsoft Word and the spreadsheet Excel, you may be hard pressed to find an administrative position in this field.

6. Should Like Working with the Public

If everyone paid the rent on time by the fifth day of each month, the manager would not have rent collection work to do. If a property never had problems, such as toilet overflows, lost keys, or defective smoke detectors, a property manager would have little to do. Therefore, it is important that a manager enjoy dealing with people with problems. A manager should at least like helping tenants with dignity, and in a responsible manager. If you do not like being interrupted several times a day with a dilemma to solve, this type of job may not be for you.

7. Must Be Patient and Have a Sense of Humor

There is some pressure involved working with the public. There are days when nothing seems to go right, and if you happen to have a headache that day, it could be a long 9 to 5. A calm personality or a good sense of humor will take you a long way in property management. If you tend to be high-strung, anxious, or become angry or impatient while working with tight deadlines or with people with problems, you may want to re-consider taking on this profession.

8. Must Like to Read and Conduct Research

There are many types of leases, agreements, forms, and other legal documents that must be signed between tenants, the manager, government agencies, the site attorney, and / or the owner. Real estate and governmental regulations change; the manager must be willing to read up on them and stay current. Documentation must be read and checked before submitted to tenants, agencies, the owner, etc. If you do not like to read in order to keep up with the latest trends, legal and industry changes and terminology used, you will not be able to properly do your job.

9. Must Have a Strong Sense of Duty and Commitment

Ensuring that the tenants under your control are treated with respect, have heat and hot water, are not subjected to or committing illegal activities or disruptive behavior of their neighbors, are some of the managers' duties. Tenants depend on the manager's sense of obligation to the property and the families or professionals who live in it. The manager may not always have the funds to do everything all the time, but what can and should be done, such as keeping the building clean, and having a sense of urgency to get work completed in a timely manner.

10. Should be Flexible-Minded

Property Management is a fluid profession, in that it follows economic, governmental, industry, and societal changes that impacts how a property is managed. Managers who still like the "good old days" of mistreating tenants and making rental applicants jump through unnecessary hoops to get an apartment (or the opposite, by not checking anything), will find him or herself out of touch, and maybe out of a job. The ability to accept changes of law, obey fair housing laws, have a positive, or at least a neutral, attitude about people who are different, and above all, to be open-minded, is a key element of a successful manager.

11. Must Be an Excellent Follow-Up Person

A manager can never assume that a repair or rent payment plan will happen on its own. Our mantra is: "Follow Up, Follow Up, Follow Up!" This is one of the most critical skills of a good property manager. The ability to multi-task, keeping several balls in the air without dropping any of them is challenging, and difficult at times. The ability to successfully multi-task is often rewarded both financially and in promotion decisions.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Carolyn Gibson

New Real Estate Agent Training – Your Circle Of Influence

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Every new agent has heard the admonition they absolutely must contact everyone in their circle of influence when they start out. This is certainly good advice because when you are just starting out, you are going to have a tough time getting clients. You will not have past clients to recommend you, signs around town with your name on them, or print ads displaying your listings. All of these methods, and many more, combine to bring a constant stream of clients once you have been in business a number of years.

Because none of these are available to you, you will have to work with what you have got. And what you have got is a vast collection of friends, relatives, and acquaintances you can look to for your first deal. This is your circle of influence (COI).

So, where to begin? One of the first things you will want to do is begin compiling your contact list. The list should include everyone listed above and anyone else you can think of. Do not forget past co-workers, people you went to school with, and casual acquaintances you know from your bank, the grocery store, the dry cleaners, etc. Make sure to note as much information about each of them as you can. You will want their name, address, phone numbers, birthday and anniversary dates, and any other information you want to include.

A standard tool for agents, and one you really cannot do without, is some type of contact manager software. There are many different choices on the market and they range in price from free to several hundred dollars. There are even packages where you pay a subscription fee every month.
You may be tempted to try one of the free or low-end packages but you should consider this carefully. A well-known problem with this type of software is the malicious code that often comes with it. This can include spyware, adware, malware, and any number of viruses.

You will be better off if you go with one of the mid-priced packages that allow contact information, expense and other custom reports, letter and flyer management, and can be upgraded in the future. You will want to start using any package you go with as soon as possible.

If you want to start making some money before making another purchase, just use the Mail Merge feature in Microsoft Word. You will be limited to basic name and address information but this can help you address your letters for mailing. Make sure you handwrite the address on the outside of the envelope. This helps separate your letter from the junk mail everyone receives. Your first letter should announce your new broker affiliation, and do not forget to include a few business cards.

Something you should keep in mind whenever you are mailing anything is that you can improve the response immensely if you follow this, or any other, mailing with a personal phone call or visit. In fact, you should make sure you mention your visit in the letter. This gives you the advantage of having your letter remembered and firmly ties its message to you. You will want to mail as many letters as you can follow up on as soon as possible. Direct mail, even to friends, has a notoriously low response rate so make sure you do everything possible to be remembered.

Brokers know you are likely to find your first deal this way and will certainly encourage you to pursue this. The unscrupulous among them will want you to push yourself on these people harder than you might think proper. In fact, many brokers are willing to take on inexperienced agents because so many of them are able to pull their first (and sometimes only) deal out of their COI.

Be careful with your approach. Remember you are in this for the long haul and it will certainly do you no good to make a pest of yourself. Gauge your technique with the response you are getting. If it is generally negative, tone it down a little, but keep in mind, not pushing hard enough can be just as bad. Ultimately, contacting your circle of influence is just one of the many ways you will be prospecting for clients but it just might turn out to be the one that gets your career started in the right direction.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Aldar Nagy

Help, I'm Scared – I Just Read My Home Inspection Report – Is The House Falling Apart?

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Oh My Gosh … pipes are leaking, roofing shingles are damaged, the furnace isn't working properly, there are electrical issues, the deck needs attention …. gheesh … What do I do now? Is this house, the house that I've fallen deeply in love with, falling apart?

Well … maybe so and maybe no. There is no perfectly constructed or perfectly maintained house … at least, I've never inspected such a thing nor do I expect that I ever will. Nevertheless, be assured that there are homes out there that are just plainly in very poor condition. Chances are, though, that the issues identified in a Home Inspection report are typical issues for a home of any given or particular age. While this isn't always the case, the issues are very likely able to be repaired. Most anything can be repaired. Even more serious items eg structural issues, water intrusion and resultant damage, heating and air conditioning systems that need to be replaced etc., are able to be repaired. Once issues have been identified, irrespective of their severity, it then becomes a matter of whether or not they are going to be repaired, how and by whom they might be repaired, how much those repairs are going to cost, and what party is going to be financially responsible for those repairs.

First … and in my opinion … the details of what a Home Inspection is, and of how a Home Inspection report is typically used in a real estate transaction, should have been fully explained to the buyer by their real estate agent prior to the Inspection period. Then, at the beginning of the Home Inspection, the Home Inspector should explain to the client what they can expect from the Home Inspector, and from the Home Inspection report. The Home Inspection report, and again in my ever so humble opinion, shouldn't be considered as an all-inclusive list to be used to beat the selling party severely about the head and shoulders. There will likely be … will almost certainly be … items in the report that, while required to be reported by the standards governing the Home Inspection, may not fall within the scope of the Real Estate Offer To Purchase Contact as items that are able to be asked to be repaired by the seller. That determination, or interpretation, is best left to a real estate agent or to an attorney. The issues identified in the report, in their totality, is information … information provided as part of the basis upon which to make an informed purchase decision. That's why you had an inspection in the first place, right? You paid for a professional evaluation of the home to make a more informed purchase decision.

Second … take a half-step backward, take a deep breath or two, and re-read the report. I promise that the world hasn't come to an end as the result of the report. If there are numerous individual items to consider, then try to itemize those issues in the order of their importance to YOU. The report may categorize the issues to some degree but the Home Inspector cannot decide what importance YOU should place on any given item. Neither should the Inspector be advising you as to whether or not you should purchase the home; such advice or guidance is simply outside the scope of a Home Inspection. There are two questions that I, personally, have never answered. The first is "Would you buy this home?" and the second is "How would you rate this home on a scale of 1–10?" There is too much that a Home Inspector just simply doesn't know to be able to answer such questions. Sure, they know a great deal about the physical condition of the home by the time the inspection is complete, but that's only part of the equation. They don't know how much the home is worth, they don't know the clients financial condition, and they don't know what the financial arrangements might be. I suggest, too, that they shouldn't want to know.

Third … set about gathering yet more information. Information … accurate information … and the resulting knowledge gained are your most dear of friends. You need to associate a dollar value with the needed repairs. Are the repairs going to require a structural assessment by a licensed Professional Engineer? Are the needed repairs such that they will require implementation by a licensed General Contractor? Can any of the items be corrected by a handyman who specializes in general repairs? Seek out and obtain estimates from the contractors that will be performing the repairs. Use all of the resources available to you to attain information and make good decisions. Your experienced, professional real estate agent, assuming you've retained that service, is in an excellent position to assist you in this endeavor. The typical professional real estate agent has, at their disposal, a vast wealth of knowledge and resources about how to go about dealing with the contents and issues of a Home Inspection report. That's part of what they do in representing their clients during a real estate transaction.

Your success in your real estate transaction is at least partly dependent upon gathering appropriate information, processing that information, and making informed decisions based upon that information. Doing so in a calm, direct and straight-forward manner … with as little involved emotion as possible … will likely be contributory to a positive outcome.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Gary Gentry

Buying a Travel Trailer – The Pros and Cons of New and Used Travel Trailers

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Are you thinking about buying a travel trailer? There are so many decisions to make.

* Do you want a new or used trailer?

* Is this going to be a cash purchase or financed?

* What are you willing to spend?

* Should you get a 5th wheel, toy hauler or tongue pull travel trailer?

* What manufacturer are you interested in?

* What floor plan is best for your requirements?

If you are undecided, you should start out by considering the pros and the cons of buying used vs. buying new. Take your time when buying your travel trailer. Do your research and avoid spontaneous buys.

PROS of Buying a Used Travel Trailer

* More Bang for Your Buck. A used travel trailer will hold it's worth longer than a new trailer. A used trailer is the way to go if you are on a looking to save money or don't want to be stuck with making payments for 10 years. You could get a used 252 with all the bells and whistles cheaper than a NEW 202 plain jane travel trailer.

* Do Your Research. Visit travel trailer forums and read what owners are saying about particular travel trailers, both good and bad, this information could save you a bunch of future headaches. Remember the greater part of travel trailers that are purchased new rarely see any camping action, a large amount of trailers are either put in storage or parked at peoples houses. Its not unregular to find a used travel trailer in showroom condition, even older travel trailers from the 70's can be found in great condition.

* Second-hand travel trailers hold their value! If you get a good quality bargain on a used travel trailer and decide to sell it a few years later you have a great chance of getting all your money back.

CONS of Purchasing a Used Travel

* Potential Problems. Buying a used travel trailer is a bit of a gamble, there could be minor problems or major problems and if you are lucky – no problems with the trailer. In most cases the warranty will have long ago expired, so expenses will be out of your pocket. Do your homework right so problems won't be a surprise.

* Elbow Grease. You will need to give your new used trailer a good cleaning, no matter what condition it's in.

* Less selection of ideal floor plans. Floor plans are limited by what's currently for sale.

PROS of Buying a New Travel Trailer

* Nice & Sparkling. It's new, fresh and all yours!

* Warranty. If there are problems, take the trailer back to your dealer and they'll have to repair them for free!

* Maintenance Free. You do not have to be bothered with purchasing new tires, new battery, or any other part for at least a year or until the warranty has expired.

* Floor Plans. Lots of floor plans and interior colors to choose from.

CONS of Buying a New Travel Trailer

* New Trailers Depreciate Fast. A new travel trailer loses it's value the moment you pull out of the dealers lot. If you financed with little or nothing down, you will be "upside down" owing more that the trailer is worth, for years! If you have to sell your travel trailer you will most likely owe more than what it's worth and have to come up with the difference in cash.

* The Cost. If you are budget minded you almost certainly do not want to be trapped making monthly payments for the next 10 years on a travel trailer you will use at the most 8 months out of the year. Do the math, and figure out how much each camping trip will actually cost you per year, just factoring in the monthly payments. Ouch! If your payments are $ 350 a month x 12 months = $ 4,200. $ 4,200 can buy a fantastic used travel trailer and you won't be stuck with payments!

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Shelly Bray

What Does CMA Stand For And Why Is It Important?

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

In real estate we use a Comparative Market Analysis, commonly referred to as a CMA report, as a tool to help a home owner more accurately price their home in a given market. The CMA report is created by a Realtor providing information to you by comparing your property to properties similar to yours. This is a service that we offer to our clients at no cost to them.

In order for your agent to provide a precise report, it is important that your Realtor personally visit your home to get an idea of ​​the condition of your property. This meeting is not intended to be a property inspection; your agent will not climb up on your roof looking for leaks, or crawl under your home to check out the foundation. This initial viewing is intended for the agent to get an idea of ​​to how your property will show compared to others in the neighborhood. The condition of your home will have value. If your property is in better condition than others in the area, recently painted or has more upgrades for example, this could be added value in your CMA report. Remember to let your agent know what improvements, if any, you plan to make before you put your home on the market. They will consider the location of your property in your neighborhood too. Do you have a better view than your neighbor? Or, do you have better location in the neighborhood? This could also add value. These are some of the factors taken into consideration when putting together your CMA and will give you and your agent an idea of ​​how much your property is worth in the current market.

Next your agent will gather data provided by the Multiple Listing Service (MLS) to compare homes similar to yours in your neighborhood that have recently sold. This will give you an idea of ​​what buyers are spending on properties in your area. Some of the other things that we take into consideration are, the age of the structure, the size of your home, the number of bedrooms and bathrooms, and the size of your lot if it is a single family home. Your agent will also look at other properties in your neighborhood that are currently listed for sale, "the competition". You will want to be competitive in your pricing to get your home sold in a reasonable amount of time.

To clarify, a CMA is not intended to be an appraisal. The CMA is simply a guide to help you price your home for sale. An appraisal is always performed by a licensed appraiser. The appraisal is typically ordered by the buyer's lender to determine value. Is the home worth the price that is asked? The lender is considering the risk of the loan. As a home owner, you can also order an appraisal to put a value on your home but there would be a fee involved.

The CMA report is also useful to a buyer. As a buyer, you can ask your real estate agent to run a CMA report before they write up an offer on a property. Your agent should discuss the results of the report with you to help advise you on a fair purchase price for the property. The final decision on how much to offer for a property is always the buyer's.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Suzanne Larkin

Hair Bow Business: 11 Tips to Start Selling Hair Bows

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

1) Caution! Don’t Start Online“…“Yet: Everyone wants to sell on the internet as it opens your business up to the entire world. Many people try to immediately start selling online via a website only to find out they make very few sales. Why? No one is finding their site. Selling online is great, but it can take time to get sites set up or traffic to your site. Simply put, starting a website will get you nowhere if you don’t get traffic to see it. There are lots of variables in getting your website noticed by Google but we will save that for a later article. Easier ways to begin selling online are by listing your bows on eBay or Etsy. Both of these sites allow a beginner to showcase their products with ease. If your product is priced competitively and you have good pictures to display, you should be able to start selling right away via these sites.

2) Local Business Marketing: We recommend this as one of the best ways to start selling your hair bows and ribbon products. This is why we listed it as the first „do“ item. Many people try to immediately start selling online via a website. Selling online is great, but it can take time to get sites set up or traffic to your site. To get off to a quick start, focus your efforts initially on your local market. Find local boutiques and children’s stores and drop by with examples of your products. Be sure to have an idea of how you both will benefit from working together. You can sell your bows at a wholesale price or work out a commission for the store if they agree to sell your hair bows. Get in touch with the local schools cheer leading and dance teams. Consider creating school fundraisers and doing „hair bow parties“. Hair Salons are also great avenues to sell your bows. Finally, do what we did starting out and sell at some nearby community craft shows or public events where a booth can be purchased.

3) Social Networks: Facebook and Twitter and similar networking sites are the rage these days. Don’t forget to use these sites to market your business. Learn the options of each type of site and focus your efforts on getting followers by posting great relevant posts. Use these sites to show pictures of your creations and post bow ideas to your followers. Announcing promotions and sales are a must on social networks.

4) Blogs: There are lots of Blogging sites you can use. Blogger and Word Press are two popular options where you can easily create a blog for your business. Post pictures and write about your products. Come up with creative designs that will catch the eyes of your readers. Make sure you link your blog to your website which can help drive sales

5) eBay and Etsy: Rather than starting with a website, start generating business online with eBay or Etsy. These sites already have huge amounts of shoppers and you can list your bows here for a small fee. Both of these sites allow a beginner to showcase their products easily and effectively. Key points to selling via these sites: price your hair bows competitively and use good pictures and descriptions. Once you have developed a good number of sales through these sites, it may be time to consider starting your own branded website.

6) Starting Your Own Website: We started our first website at WahmShoppes. For $8 per month, you can open your very own e-commerce store. Customize the look of your store by using any of their various templates. It takes time to start getting web traffic organically. If your budget permits, Google Ad words is an immediate way to start driving traffic to your website. With Ad words, you only pay when someone clicks on your ad. Be careful as it can be quite expensive, especially if people are just clicking and not buying. Gaining traffic organically is a whole subject to itself but make sure you submit your site to the search engines and to some online directories to start. To take online payments, we suggest using PayPal and/or Google Checkout to save on monthly merchant account fees until your volume may dictate a merchant account will pay for itself.

7) Ribbon Suppliers: If you are going to sell hair bows, you are going to need lots of ribbon. Sure you can go to Wal-mart or Hobby Lobby but generally the selection will be less and the prices will be higher versus finding a niche online store that serves the hair bow industry. Look for a company carrying abundant variety, quality products, great pricing, excellent customer service and ships promptly. You want to build a long-term relationship with your supplier and these points mentioned are key to your sanity and success. Be sure you can get color cards from your suppliers so you can accurately match multiple colors on the bows you create with real samples. Don’t rely on images on a computer monitor for color matching. Let your customers use the cards to pick out their colors for a custom bow made to their specifications. Do a web search on a search engine for „hair bow supplies“ to come up with a list of good suppliers.

8) Hair bow Templates: Save yourself lots of time and frustration. Use hair bow templates! Create a consistent bow size every time and eliminate your grosgrain ribbon waste by using a template. By doing a search online for „hair bow templates“ you will find several retailers offering templates you can purchase online.

9) Hair bow Instructions: There are so many different types of hair bows you will never learn them all. Many sites sell instructions but others offer them for free. Search around on Google and even EzineArticles to find an abundance of free instructions. If you prefer video tutorials, check out YouTube for some excellent videos to view.

10) Shipping: The goal of every business is to get to the point where they have so much business they can’t keep up. When we got to this point we purchased a shipping tool called Ship Rush. This program ties your computer and electronic scale together and allows you to click and copy the customer information right off the email or customer receipt. It then quickly prints out a custom shipping label for the US Post Office or UPS without you having to type in any address information. Trust me, it will become a huge time and money saver as your business grows if you ship out a lot of packages.

11) Financial Software: The number one reason businesses fail is by failing to understand and manage their finances correctly. Your business finances must stay organized and your cash flow needs to be handled carefully. With money coming in and out constantly, this can quickly become a real challenge. Using accounting software such as Quicken or QuickBooks can keep your finances organized. Talk to your CPA to see what they recommend.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Kristi J Banwart

Cold Calling in Commercial Real Estate

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Commercial real estate is an easier property market segment to work in because it is built around logic and not emotion. Most of the prospecting calls and meetings you make are with people that are 'business savvy', and know real needs and solutions when they see them.

The emotion seen with owners in residential property is not a problem in commercial real estate however you do need to know what you are talking about given that commercial is a complex investment property type and the property owners are usually very aware of what is going on. For this reason, and to all the newcomers to the industry, you must know your product very well and be able to talk to it from many angles. Without this many property owners will discount your relevance to them.

Get Your Head and Thinking Straight

B2B cold calling is an essential part of daily activities in commercial real estate however it frequently fails because most salespeople sound like they are making a cold call. Here are two essential rules of cold calling success in commercial real estate:

  • It is the 'how you do it' that really matters to the call conversions to appointments.
  • What you 'think about' in doing the regular call process also is a critical part of the method.

Change the Name – and you will change the results you get

'Cold calling' implies something less than 'warm' and pleasant. To solve this problem, I prefer to think of it as 'Call Direct'. It is a more positive mental image than anything that is 'cold'! To be successful in making these calls, you must sell the process to yourself and believe that you are good at it.

When calling a prospect in commercial real estate, most salespeople are trying to 'get' something from someone. They are trying to 'get' an appointment or 'get' a listing. The fact of the call is that no one wants to 'give' something to someone they do not know, like, trust and respect. This is why most commercial salespeople fail miserably at this process.

But 'getting' is not the purpose of 'call direct'. 'Call direct' is a discarding or disqualifying process. It is just like panning for gold or digging for diamonds. You have to turn over a lot of dirt before you find the gems. If you do not understand or accept this principle, then you will become frustrated and think that your efforts are not working. You will give in far too easily (this is what most people do and they therefore struggle to achieve great levels of listings and transactions).

Your objective in 'call direct' is to disqualify as many people as possible, as quickly as possible. That eliminates the time and money wasted in sending literature or seeing people who will never use your services, and it stops the fruitless follow-up calls that lead nowhere but to frustration.

You only have 30-45 seconds to deliver a specific and compelling reason for the person on the other end of the telephone to 'want' to continue the conversation. Skip the small talk and get right to the point. Be a 'top performer' in the call process.

You will be most effective when your 30-45 seconds causes the prospect to identify a real estate related problem in their mind that you can help them fix. People will talk to you if you shed light on a problem they need to have fixed; only for that reason.

Problems in commercial real estate typically focus around loss of rent, tenant problems, wasted time, inefficiencies in returns, competition pressures, disposal needs, functioning of the property, age of the asset, or repositioning etc.

If the prospect (not you) identifies something that is having negative ramifications on their property performance (a problem) AND they are serious about getting rid of that problem, then you 'may' have a possible reason to continue.

If there is a possible fit between you, then you can set an appointment to explore the possibilities of helping that prospect in some way get rid of that problem. There is no point in setting up an appointment simply because the other person lets you do so. You must determine that they are relevant to you, they are the decision makers, and that they have an interest in what you are talking about.

Protect your time by qualifying the correct people over the telephone before you make that appointment. There are a lot of prospects out there who think that they are the 'decision maker', and in reality are nowhere near those that are. Think like a 'top performer' and protect your time; it is the most important resource that you have.

What to Say?

Have you ever been stuck to know what to say when you call prospects in commercial real estate? If you are like many people you will use a script that is fairly typical and 'all about you'. The process has poor results and ends in low call conversions to appointments. You have to change the call process significantly so that it has some relevance to 'them'. When you do this your call conversions will rise.

The object of the call is only to get appointments with relevant people. That is the only thing you should be 'selling' in the cold call. The call should be used to identify if there is a genuine need on the part of the person that you have called, and then only to set up a meeting.

You are a skillful and relevant commercial real estate consultant in your market, and on that basis you are calling people to see if they have a property need and if you can help them with that.

Remember this fact and make it the foundation of your calls. There is no purpose in setting up meetings with people that really do not need you, or have no ability to make a decision on commercial real estate matters. This market today is not something in which you should waste time. Your time is money and money is precious.

The Call Structure?

The 'call direct' structure is so important and must be centred on the prospects situation and not yours. Try this as a basic approach.

  • Tell them your name and company
  • Ask permission to talk to them for 60 seconds
  • Tell them that they can end the conversation if they want to after that point.
  • Get right to the point by focusing on their needs (not yours)
  • Help them identify their business problems by offering a 'short menu'
  • Never try to convince a prospect to take your services or have a meeting without qualification; instead let them convince you it is worth your time and effort to meet with them.
  • Honor your agreement and let them off the hook if they do not want to engage

Here's an example of 'call direct' for Commercial Real Estate Sales or Leasing:

  • Brian, this is John Brown from Atlas Commercial Real Estate. The nature of the call is property related.
  • Can I take 60 seconds of your time to chat and then you can tell me if we should continue speaking?
  • Thanks for that …. I will be brief.
  • I am just calling to see if commercial property is an issue for you in this market, particularly with sales or leasing needs.
  • 'Results are on the radar' for many local property owners at the moment, and we have some ways of helping with that.
  • Is that an issue for you?
  • That's not a problem Brian, as I said I just want to see if we are a clear fit or a match and can help you in any way.
  • Many property owners are concerned about their returns or occupancy situation in the face of more competition or market pressure. They are looking for ways to increase reliability and consistency of the property's performance.
  • Its good insurance in this market.
  • Brian, that being said, could these be things be issues for you in the future? ….. Or is everything running 100% smoothly? '

In less than 60 seconds you will know if you have someone on the line that is relevant to you. If they do not have any commercial real estate problems that you can fix, then it's over (for now). Remember, they may not have a property problem today, but they may have one in the future. Put them in the database for another call if you think it is relevant.

If you make 'call direct' a scheduled business event at the same time in your daily diary, and you action it with consistency, you will be amazed how much new business you will dig up. Understand also that 'no' is an 'ok' word that, when given by the prospect, simply needs qualification in case some future need is still hidden in the discussion. You will get many 'no thanks' comments as part of the call process. Do not try and push or convert every 'no thanks' to an agreement for a meeting, unless you really know that the prospect is truly relevant and that they will have a need in the future.

Make this call process part of your daily business model and continue it even when you become more successful. As you get more referral business from 'happy' clients you should still continue the call process as it is foundational to permanent and real success in all types of commercial real estate markets. The only other essential element to incorporate in this activity is a good database program where you can register leads and feedback. This will be your funnel for future business.

As simple as all this sounds it is surprising how many people do not do what I have explained here. They loose focus and quickly revert to old random habits and actions; they then get random results. Your success in the commercial real estate industry is centred around your choices and your ability to change your habits on the things that really matter to your business. Get the message? Happy hunting!

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by John Highman

Never Sell Your Pest Control Company For Fair Market Value

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

There isn't a week that goes by when someone doesn't ask me, "What is my pest control company worth?" My response to that is always the same, "To whom? What is it worth to whom?" If you are asking me this because you want to gift some company stock to your son I would most likely have a very different answer than if you are interested in selling the company to Rentokil.

For a lot of pest control operators out there it's hard for them to understand that each business has a different level of value for different purposes. Unlike your home, which generally is always looked at from a "Fair Market Value" perspective, a pest control company has multiple shades of value or what are commonly referred to by many in the appraisal profession as Standards of Value.

The standard of value basically answers the question: What is the company worth to whom? In the business appraisal community there are three primary standards of value, but in the mergers and acquisitions world we generally rely on two:

1. Fair Market Value: this standard is most often used in tax and divorce valuations and answers the questions: What is the pest control company worth to the current owners?

2. Investment Value (Strategic Value): This is the value to a specific investor based on individual investment requirements and expectations. An example of this is four different buyers offering four different purchase prices for the same company – these prices are based on individual synergies that each buyer brings to the transaction.

When you are gifting stock to your children, you want the company valued at Fair Market Value, which is generally lower than the strategic value – this saves you money on taxes. When you sell your business, you want to sell it for the highest investment or strategic value, not the fair market value. This is accomplished by finding the acquirer that is the best strategic match for your company. Whether you are selling to Orkin, Rentokil or the competitor down the street, the firm that is going to pay the most for your pest control company is the one who will realize the most synergies from the acquisition (or sometimes, unfortunately, the one who is making a terrible mistake by overvaluing your business).

Again, Fair Market Value answers the question: What is my business worth to ME today?

Strategic Value answers the question: What is my pest control company worth to a SPECIFIC ACQUIRER or INVESTOR today? And that is going to mean a different value for each buyer, because every buyer is unique. Not understanding this concept costs sellers a lot of money BECAUSE YOU NEVER WANT TO SELL YOUR PEST CONTROL COMPANY FOR FAIR MARKET VALUE.

Knowing and understanding the Fair Market Value of your business is a very valuable for the following reasons:

1. How can you plan for your retirement if you don't know what your pest control company is worth? Prior to beginning every business valuation and sell-side engagement, we ask the pest control operator what he thinks his business is worth – the average owner is off by 50%!

2. Gifting stock to your children? Did you know that you have a 50% chance of getting your gift or estate tax return audited if your estate is worth over $ 1 million?

3. Do you have enough life insurance to cover estate taxes should you pass away?

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Paul Giannamore