Anthony's LiveSpot Blog

How to pick a winner in the network marketing industry.

noreply@blogger.com (Anthony Fontana) — Sun, 26 Feb 2012 02:52:00 +0000

Okay this article is going to be basically how to find the right company from all of the garbage out there now.

I’ve been in the business for over 30 years, and I have a lot of experience with great companies and some really bad ones. Frankly it seems that there is so much garbage out there. I'm getting so tired of these new companies that open for business and promote themselves with so much freaking hype; You’ve all heard it “We are the cutting-edge; we are the new thing; we are the new kid on the block and our revolution is coming. I’m seeing it almost daily now as yet another juice company thing with a totally unproven model opens up. I’m tired of seeing that the guys that are getting into the business early on will make the bulk of the money. The reason that happens is because frankly they hype the crap out of the opportunity, transferring people from their other businesses organizations, companies that have already failed them, and move those desperate distributors into their new business, basically deciding for the masses that “NOW” this is the thing that they will all have to be doing going forward. “Sorry our last thing did not work out for you, but, hey this one will!” Bullshit, that’s all it is.

No one in their right mind would want to pick a company is likely to go out of business. And even with what I'm about to share with you here, there is no guarantee that your own network marketing company will last for the rest of your life. While there are no guarantees that a company will stay in business there is absolutely no reason whatsoever that you need to be involved in the company that will put you at risk.

So what exactly do you look forward picking a winning network marketing company? Well when I have gotten involved in network marketing industry back in 1980 I got involved in the big boy on the block, the grandfather of the industry, the Amway Corporation. Great company so I thought but it wasn't and isn't, so I left the company after 20 years, and even left the industry. I made a lot of money during my time in the business but not without a lot of sacrifice and investment. Frankly, if I added up the amount of time I spent in it making money, it was more like minimum wage. I believed that very few people could accomplish what I accomplished, because I was basically building a business full time, where most would not be able to make that commitment. So I set out to find a company that would actually give me exactly what I needed for it to have before I would even consider joining.

Is it the company that has the best product? Is it the one with the most scientific evidence to validate the product? Is it because everyone already uses what you have to market? Is the management team making it the best? What about the compensation plan? These questions I'll try answer here.

1. Okay, what were the success factors that I and my partners were looking for when we got involved in the business that we eventually joined? First we were looking for a company with a strong track record. Most companies fail within the first five years. The company I work with now has 26 years of consistent growth, missing only one year 2009 where it failed to grow over the previous year. 2009 was the heart of the recession, yet even though our volume dropped a few million, our customer base still grew from the previous year. Other than that one year, we continued to grow, and in 2011, we hit $1 billion without any debt. We are a totally privately owned company. It is financially sound, and your new company should be financial sound also.

2. Do they have a strong management.
a. Most company owners are MLM’ers and own the down line.
b. Most companies know that they have a very short window to make their millions and move on.
c. The result: most company owners make decisions to make themselves wealthy at the expense of the people’s (their customers) futures.
d. My corporal leadership come from Fortune 500 companies like ADT, Revlon,., Ohio belt, Gillette, Procter and Gamble, Cox communications, UPS, which equals sound business mine is running the company.
e. Is the company's management team principal centered/mission – driven
f. Is there any hype? Is a company promoting itself as the next greatest thing in the planet, a new revolution, something incredible happening here? Crap like that is just bull shit.

3. What is the product that is selling?
a. Are they manufacturing superior quality, safer products protected by trade secret, proprietary formulas and patents – products that can only be obtained from that company?
b. Do you need to create a need to buy the product?
c. Are the products those that people are already buying; in other words are they using old money, money they're spending already somewhere else, or are they forced to spend “new” money to get the products that they don’t normally use?
d. Is the monthly consumption of household basics – creating the residual income, or is it overpriced juice product or unproven supplement whose price has no bearing on the actual cost of the product?

4. Are the products competitively priced?
a. Is the company's price point at or below supermarket prices?
b. There are strong economics involved – great value in being a customer?
c. Are they manufacturing their own products – complete control over the product line?
d. Is the product line recession proof? In other words if a customer was unemployed, loses their job or has an issue with income will they still buy product. Is the product the first thing that they will think about buying after getting laid off?

5. A high reorder rate
High reorder rate is critical when you looking at any network marketing company. The consumer chooses the brand. That's what creates the residual income. Coming from decades in the business, I understood that there was no 80/20 rule in network marketing. Its actually 100% to zero. In other words I knew that as a leader I needed to do 100% percent of the work just to get a check. I've always understood that. What is your reorder rate for the company that you looking to get into. Of course if its brand-new you won't know that. The hype and excitement and the assets thrown at you early on in the early stages of getting the business off the ground is usually a basis for, well let's put it this way, exaggeration. Since the company has no idea what its ultimate results are going to be even if they have 10,000 or 15,000 people, or 20,000 people on hand for the launch, you can have no idea what their ultimate goal is going to be and what they'll actually reach. The bottom line is they don't know because they cannot know. It's impossible to predict. So they rely on hype. They create a false sense of success that doesn't exist. In many cases they don't even have a damn website up. So is the company willing to show a business report?

So in a nutshell one of the most important things to consider is this. Is there a personal production requirement. They should be no new money involved. No need to change your budget. You simply switch from wherever you're purchasing whatever it is you're buying to the new company. Everyone should be able to be a customer and be exciting comfortable about what they're buying every single month for years.

They should have a very low entry fee. Your enroler and any other upline should not be paid a bonus on you joining the business. You should be able to come into the business the right way – not based on a huge buy in, purchasing a useless inventory that you now need to sell to other suckers.They should be a very low attrition rate. In most companies if the customer did not order, they quit! 60% of businesses are brand loyal consumers. That equals stable, residual income, repeat purchases. The customers will stay if there's enough value.

Todd Falcone, one of the worlds most successful networker marketer says the following:

“Very few people have the viewpoint I have. Most people only see what they’re in. So…how do you pick a network marketing company?
Let’s clarify the question a bit.

The reality is that you could throw darts a board and pick literally ANY company you want. But…when it comes to rational decision-making, there are several factors you need to consider before choosing one.

The intention of this is to help you pick a winner, something that has the potential of being a long-term play for you.

I’ll tell you right now that there are few things you want to avoid like the plague.

• Don’t do gifting programs.
• Don’t play money games.
• Stay away from stuff that promises you millions with little or no effort.
• Run from companies or ads that promise to build it FOR you.
• Stay away from anything that promises CASH sent directly to you.

Here are a few FALSITIES that are also perpetuated upon people that simply are not true:

FALSE: You have to be one of the first in to make any money.
I have several personal friends of mine that have entered companies many years into their existence and still done incredibly well financially.
FALSE: It takes little to no effort.
Network Marketing requires work. In fact, it takes a lot of work. When people tell you that you don’t have to do anything, you’re not likely to make anything.

FALSE: You can build it 100% online.
Show me someone who has. There isn’t one single solitary sole that I know or have even heard of who builds their network marketing business 100% on the Internet. Yes…you can use the Internet to market and build relationships, but you can’t hide behind a computer and make money.
FALSE: If it’s not ground floor, you’re too late.
First of all, most companies take a little while to get their legs and figure stuff out. Getting in early CAN be good, but to say “it’s too late” if you sponsor in after the company has been around for a while is a complete joke.
There are probably several other garbage lies that are perpetuated upon new people looking to enter this profession, but those are certainly a few of them.
Does the Product or Service Suit You?

First and foremost, does the company suit you and pull on your heart strings? Do you REALLY believe in what you’re about to bring to market?
You cannot be successful long-term in a company where money is your only focus. Sure…we likely ALL do this to make money, but having that as your only driving factor is a recipe for failure. You’ve got to like what you’re selling and believe in it to the core…IF your objective is for a long-term play.
If all you want to do is make some money and be in something that keeps your interest only for a little while, then pretty much anything will do.
But let me ask you this. How many times do you want to have to rebuild in your life?

By the way, the likelihood of you being with only one company for your entire MLM career is slim to none. Sorry. Just being honest here.
The sad truth is that people talk all the time about building a company, work it hard for three to five years, then enjoy the Golden Years of your early retirement without every working again.

Companies come and go. It’d be great if you could pick such a winner that you never have to rebuild again, but probably not likely to happen.
And…by the way, that doesn’t make our profession bad. If you work on developing your skills and your abilities related to building a downline, you take those skills wherever you go.”

So let me summarize what I feel you need to do to pick a great network marketing company. Pick a company that you feel good about.

1. Stay away from money games.
2. Check out the owners.
3. Do your homework. Understand what you're getting into.
4. Use your gut.

Now, if you find a company, start working get your butt into gear, start doing something with it. Don't look back and don't look forward, just start doing some work. Jumping from company to company is a completely stupid way to building a business. Its a recipe for failure. Once you've chosen the opportunity that you plan to be in, stick with it. Give it time. Don't think you’ll get rich in six weeks. If you're ready to get rich quick, please don’t get involved in Network Marketing. You're only hurting yourself and hurting the business.

A global travel alert has been issued for US Citizens abroad.

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 04:29:00 +0000

A global travel alert has been issued for all Americans traveling abroad. I have no doubt that these sick bastards who call themselves men of God are now going to do everything they can to 'avenge' the death of their fearless leader. I say, bring it on you peaces of garbage. Expect 1000 of you to be visiting your 70 virgins for every American harmed by your insanity.

In honor of CHRISTINA

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 04:04:00 +0000

I want to blow the servers at my sister-in-law's 9/11 memorial site. Please visit and submit a comment. I would appreciate it! http://christinasgift.com/'

Anthony

Statement from George W. Bush regarding Osama death.

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 03:57:00 +0000

https://www.facebook.com/#!/notes/george-w-bush/statement-by-president-george-w-bush/219390698087905

Security being increased around the world because of Osama's death at US hands.

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 03:25:00 +0000

Authorities around the world are being told to take security precautions immediately due to the death of Osama bin ladin at the hands of US military personal. Alerts have gone out to every major country to beef up security at airports, government buildings and military installations. Military personnel are being told to take extra caution due to possible actions taken against them by fanatic extremists.

OSAMA BIN LADIN BREAKING NEWS

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 03:13:00 +0000

Just heard that Osama was killed while living in a mansion in Islamabad, Pakistan. Familial DNA was used to identify this piece of human garbage. His body is in our possession. Being killed in Pakistan is not going to be good news for the Pakistan Government. Intelligence has been in place with DNA evidence for years in case he was found and needed to be identified.

OSAMA BIN LADIN DEAD

noreply@blogger.com (Anthony Fontana) — Mon, 02 May 2011 02:55:00 +0000

Thank God we finally got this bastard! My sister-in-law, Christina Donovan Flannery (http://christinasgift.com) cousin David Fontana (Firefighter), several friends, and the thousands of others can now rest in peace.

Waiting on the official President announcement. Seems he was killed in a US air strike 10 days ago, and they wanted to use DNA analysis to make sure that it was indeed him.

Great news. Thank God for our awesome military.

FED Rules on Debit Card Fee Reductions Delayed

noreply@blogger.com (Anthony Fontana) — Wed, 30 Mar 2011 02:01:00 +0000

Power to the people.

It seems that because so many people commented on the upcoming Federal Reserve Bank’s controversial proposal to reduce bank debit card “interchange fees”, the Fed will not be able to meet its April 21 deadline for issuing the new rules that would cap the debit card processing fees bank charge to retailers.

FED Chairman Bernanke reported today that over 11,000 people weighed in on the proposed rules. He wants to use those comments for determining the effects of the rule.

I’m amazed quite frankly. A bureaucrat that actually decided to listen to those of us who have some skin in the game.

I have been writing about this subject for the past month or so. I know that the proposed rules are supposed to benefit the consumer. The new rules require the banks lower their interchange fees to 12% of the transaction amount. Naturally one would assume that the reduction will be immediately passed to the final consumer. This is NOT the case. The merchants are under no such requirement, and in fact will enjoy a $ 12 billion dollar windfall. The banks, bless there little souls, will simply recoup their lost profits by doing several things such as increase bank deposit requirements, increase interest rates on credit cards, charge for DEBIT card usage which is something JP Morgan Chase is contemplating, or reduce the maximum allowed per transaction to $ 50 -$100 which is also something Chase is doing. Banks are also eliminating rewards points. Wells Fargo has already done that so you can expect the other boys to follow suit.

I will say it again and again. I wish the Federal Government would get its hands out of the process of trying to pick winners and losers in the economy. Let us decide what business we will patronize, where we will spend our money. Get out of our way and let us do our thing.

I'd love to hear your comments on this. Please feel free to do so here.

10 Notorious Instances of Foreclosure Fraud

noreply@blogger.com (Anthony Fontana) — Mon, 28 Mar 2011 15:54:00 +0000

I came across a great article on the dangers of foreclosure fraud and what to look for. Matt Cunningham does a great job how to avoid being scammed you are someone you know is having issues paying their mortgage.

The economic downturn and housing crash in 2008 has created a huge number of homes that are in arrears, and many in actual foreclosure. This has brought out the vultures who pray upon desperate people seeking a solution to their problems.

It wasn't long ago that real estate investment truly seemed like a golden ticket. Housing prices skyrocketed as low interest rates and generous financing requirements encouraged more people than ever to venture into home ownership.

As Matt mentions in his article "The foreclosure process is long, stressful and complicated, and it comes with an added risk: Con artists and scammers have come up with a variety of fraud schemes that target those involved in foreclosure"

For 10 sad examples of foreclosure fraud visit http://tinyurl.com/foreclosureFraudCases

Join me at LiveSpot.com for your free Livespot Membership before your name is claimed!

SOME GOOD NEWS FOR HOMEOWNERS UPSIDE DOWN ON THEIR MORTGAGES

noreply@blogger.com (Anthony Fontana) — Sun, 27 Mar 2011 18:42:00 +0000

If you are one of millions of home owners who’s either behind on a mortgage, or who has a mortgage that is more than the value of the home, there are two federal programs that you may be eligible for that can help you keep your home and reduce your payments. Also, one of the largest banks has set up a special program for its borrowers.

A new program created by the Federal Housing Administration (FHA) requires lenders to reduce the principal by at least 10% for qualified borrowers. You can qualify for the FHA principal reduction program if you are current on your payments and the loan was acquired from a failed bank seized by the FDIC. Not always easy hurdles to reach. One thing I like about this program is you are not required to have an FHA loan. Loans can be as high as 115% of the value! The bank is required to grant a principal reduction that brings the new FHA loan’s LTV to 97.5%. In addition, it must make the new payments account for 31% of the borrower’s gross monthly income including second lien mortgages.

The Federal Government’s Home Affordable Refinance Program, or HARP has been extended for one year. This program was set to expire on June 30th. Fannie Mae and Freddie Mac will continue to refinance qualifying borrowers who have lost equity in their home without requiring additional mortgage insurance. Freddie Mac will exempt any refinancing from recently announced price increases, according to the Federal Housing Finance Agency in announcing the one-year extension. In addition, Fannie Mae is extending its previous Jan. 1, 2009, eligibility date by five months and will now consider HARP refinancings of loans made on or before May 31, 2009.

Only borrowers who are current on mortgages that are already owned or guaranteed by Fannie Mae and Freddie Mac are eligible for the program. Although loans of up to 125 percent of a home's current market value are eligible, the vast majority of loans refinanced to date under HARP have had loan-to-value ratios of 105 percent or less. Visit the following links to see if your mortgage falls under Fannie or Freddie. http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx

Another program has been initiated by one of the major private players.
On June 2, Bank of America began its new mortgage program for eligible underwater borrowers which includes an earned principal forgiveness in a loan modification. Bank of America mailed out an initial round of letters notifying customers who may qualify. Upon review of these customer applications, the first trial offers for the program could find their way to distressed borrowers as early as the second half of June. If you are a BOA client, but did not receive a letter, I suggest that you reach out to them to see if you can be qualified for it.

For qualifying borrowers, the bank will employ a principal reduction as the first step toward reaching The Home Affordable Modification Program’s (HAMP) affordable payment target of 31 percent of household income, ahead of lowering the interest rate and extending the term. The reduced principal balance will be a non-interest bearing forbearance amount and the homeowner may earn forgiveness of the forborne amount by remaining in good standing on payments for several years.

To be eligible for principal forgiveness under the Bank of America plan, the amount of principal owed must exceed the current property value by at least 20 percent and the loan must be at least 60 days past due. In addition, the loan must have been originated by Countrywide before January 1, 2009.

Getting Your Offer Accepted by a Seller

noreply@blogger.com (Anthony Fontana) — Sat, 26 Mar 2011 14:43:00 +0000

I found a great article here at10 Ways To Get Your Offer to Purchase a Home Accepted written by CJ Brasiel, a residential real estate specialist from specialize in residential real estate in the South Bay area of California. The article is relevant in any market and I wanted to share it with you. CJ does a great job in what one needs to do to get your offer accepted by hesitant home sellers.

I'd love your comments, so feel free to do so!

Anthony

News Update: Mortgage Regulation Changes Will Affect Everyone

noreply@blogger.com (Anthony Fontana) — Sat, 26 Mar 2011 12:21:00 +0000

Later this month, the Federal Deposit Insurance Corp. will consider new rules that define what a safe or “qualified” residential mortgage is as part of the Dodd-Frank financial overhaul law. Experts say the classification will likely have broad sweeping effects on the mortgage market..

The Dodd-Frank financial "overhaul law", another congressional mess which was passed last summer, contains a risk-retention requirement that requires issuers of securities backed by mortgages and other assets to maintain 5 percent of the risk of a loan, if it is packaged into a security and sold to investors, Dow Jones reports. The idea is that lenders would be more careful with making loans since they would face steeper losses if a loan went bad.

Six federal agencies are working to resolve numerous issues on the proposal but one of the most controversial issues yet to be resolved is which loans are exempt from the risk-retention requirement and would be considered safe or “qualified” mortgages.

Regulators have suggested issuing two different plans for public comment: One plan would call for a minimum 20 percent down payment, and another plan would recommend a 10 percent down payment as well as mortgage insurance. These guys expect heated debate.

FDIC banking regulators have called for a minimum 20 percent down payment requirement for new mortgages, but lawmakers and consumer advocates have argued that number is too high and could hamper an already sluggish housing market.

Loans guaranteed by Fannie Mae and Freddie Mac, which make up about 70 percent of the mortgage market, are expected to be exempt as long as they remain under government control. Government agencies such as the Federal Housing Administration are already exempt.The important issue is that conventional mortgage loans were not the loans that posed a problem to the mortgage market, and today continue to perform very well. Loans made to unqualified individuals due to relaxation of requirements to get a loan (if you fog a mirror, you get a mortgage), no income check loans, and option arm loans are the basis for the mortgage meltdown and subsequent housing crash.

I believe that the 20% requirement will hurt first-time home buyers. What are your thoughts on this? I look forward to your comments, which I will share with the National Association of Realtors.

DEBIT CARD REWARDS PROGRAMS TAKE A HIT

noreply@blogger.com (Anthony Fontana) — Sat, 26 Mar 2011 04:17:00 +0000

As I mentioned in several earlier articles where I talked about limits being placed on debit card transaction usage ( http://tinyurl.com/debitcardlimit ) there are major changing underfoot in the banking industry as it relates to the debit cards that were foisted upon us by the banks as a way to conveniently pay our way through life without cash. In fact the cashless society was a prediction by many financial pundits just a few years ago. I agree that we are destined for a cashless society because at the rate that this government is going, we will not have any cash to spend soon.

Well today we can put another nail in the coffin for debit card holders nationwide. Wells Fargo has halted all enrollments in its Debit card reward program effective March 27 for any customers with a Wachovia Bank account, and April 15 for Wells Fargo customers. Chase has also notified its customers that they will no longer be able to earn points after July 19. The points accrued up until then will not expire, if that’s any consolation to those of you with Chase accounts. Chase had already closed off all enrollments in the rewards program to new customers back on February 8.

The programs, which offered cash back, travel and merchandise awards are a staple of the banking industry. Every bank offers various programs, and many people use them, including me. Recent changes in bank regulations (http://tinyurl.com/newbankregs ) have caused the banks to rethink their debit card programs to protect their profits. The banks are being forced into this situation because our inept and clueless congressmen have created regulations that were not properly studied. You can read more here at http://tinyurl.com/debitcardcleanup

If you or anyone you know is interested in getting away from these dirt bag banks who borrowed from the taxpayers to bail out their incompetent decisions making mortgages to unqualified people, please send them over to http://tonyfontana.com/specials for a new offer on our Free Reloadable Visa Debit Card program. There they can sign up for a LiveSpot membership for free, enjoy shopping with instantly calculated cash back, health and wellness discount membership programs, and so much more. Any questions, call me at 917-33-9686 and I’ll do everything I can to help out.

Law of Attraction Tip for Today

noreply@blogger.com (Anthony Fontana) — Thu, 24 Mar 2011 13:54:00 +0000

I here from people everyday how difficult life is, that they have a problem that is getting worse, or that they have something coming up that they EXPECT will be bad news.

You cannot notice what-is and complain about it, and also be a vibrational match to the solution. When you were living the problem, you were asking for the solution, and the universe said yes immediately. Never wallow around in a problem for more than about a second. You can get so good at this that before you're aware that a problem exists, you've already got the solution under way.

Discipline Yourself for Success

noreply@blogger.com (Anthony Fontana) — Tue, 22 Mar 2011 18:17:00 +0000

It is said that you are either moving forward, moving backward, or you are standing still. What direction are you traveling in?

G.S. Weaver said many years ago, "Continual dropping wears a stone." So persevering and hard work gains the object of our desires. it is this that builds, constructs, accomplishes whatever is great, good, and valuable to you.

Perseverance build the pyramids in Egypt, enclosed the Chinese behind a wall that can be seen from space, leveled the forests of a new world, and reared in its stead a community of states and nations.
Perseverance has produced the exquisite creations of marble from the minds of geniuses throughout history, and painted on canvas beautiful mimicry of nature and life. It has produced countless amazing products and inventions that have changed the world. But greater still are the works of perseverance in the world of mind. What are the productions of science and art compared with the splendid achievements won in the human soul? How little can we tell, how little know, the brain-sweat, the heart-labor, the conscience struggles which it cost to create a Newton, an Einstein, John Kennedy, Gandi? Why does the world bow to these people and 1000's more in reverence. Why do their worlds hve a power, their names exhalted in the halls of history forever, their deeds glorious and world changing?

They are the sons of perseverance-of unremitting industry and toil. They were once as weak and helpless as any of us, once as destitute of wisdom, virture and power of any infant. Their characters, my friends, which are now given to the world, and will be to millions yet unborn, were made by that untiring perseverance and disipline which marked their whole lives. From childhood to old age they knew no such world as fail. Defeat gave them power, difficulty tought them the necessity of redoubled exertios; danger gave them courage; the sight of great labor inspired them to corresponding efforts. So it has been with all men and women who have been successful in any profession or calling in life.

Successful men owe more to their perseverance than to their natural powers, their friends, or the favorable circumstances around them. Genius will falter by the side of labor, great power will always yield to great industry. Talent is of course desireable, but perseverance is more so. Much more. It will make your mind sharp, your wit quick, your future bright.

It will also make friends. Who will not befriend the persevering, energetic youth, the fearless person of industry? Who is not a friend to him who is a friend to himself? He who perseveres in business, and hardships, and discouragement, will always find ready and generous friends in every time of need. He who perseveres in a course of wisdom, rectitude, and benevolence, is sure to gather around him friends who will be true and faithful.

If you would win friends, be steady and true to yourself; be the unfailing friend of your own purposes, stand by your own character, and others will come to your aid, join your business, be your partner, stand still to hear your words.

Persist, be disciplined, and all the success in the world will be yours my friends.
To be continued...

Anthony
afontana@netzero.com
http://tonyfontana.com
917-331-9686

No Does not Mean No.

noreply@blogger.com (Anthony Fontana) — Tue, 22 Mar 2011 18:11:00 +0000

For some, going throught the process of showing one's business, spending perhaps an hour doing so, and then getting "rejected" can be someone disconcerting. Well, I had three "no" responses yesterday after spending that hour on each, conducted 2 secret meetings (I guess they were a secret, cause no one showed up), but still managed to book 5 more appointments to share my business with others this coming week, and enrolled one person onto my team for one of my partners. All in all a very productive day.
Don't worry about the day to day results, just get out there and do SOMETHING! Results will happen naturally...

To your success
Anthony

How to Find A Great Realtor

noreply@blogger.com (Anthony Fontana) — Tue, 22 Mar 2011 13:57:00 +0000

When shopping for a Realtor, what should you be looking for? All real estate agents believe that their resume is the best of the best, and that everyone loves and appreciates them for who they are. Clients all want their agent to have several qualities.

You're about to undertake the most important transaction in your life, and you’re putting your trust, and money in their hands to guide you throughout the entire process. They cannot let you down as professionals.

So, what qualities must a great Realtor possess as a professional?

Attention to detail.
Selling a home in these interesting economic times is somewhat more of a challenge from "back in the day". In order to sell a property today, an agent must be totally professional. That means proactive communications with all parties involved. They must sure to speak to the home owner or buyer bi-weekly. Communicating with the loan officer handling the mortgage loan for the buyer is critical. Too many deals have been lost by not speaking to the bank and ironing out any issues that may pop up.

For example, I suggest allowing the mortgage banker for the buyer run the homeowner’s title policy well in advance of closing. This ensures that something is not on the title that will need to be cured. You don't want some old lien, or a mistake popping up 2 days before closing. If you’re selling a home you should get an inspection done, and perhaps even your own appraisal. Houses sell twice, once when the buyer and seller agree to the price, and again when the mortgage bank’s underwriter agrees what that market value should be. An inspection report will tell you what the physical problems are, and what should be corrected before the buyer does his inspection. A $ 3.00 faulty outlet becomes a $ 400 reduction in an offer. It’s worth the price. Getting an appraisal is another smart investment, and it will tell you and the agent whether your price is in line with market.

Finally the buyer’s agent should request a computerized DU/LP (desktop underwriting) approval from the lender on behalf of the buyer/borrower in advance. This ensures that the buyer has the financial means to purchase the home and that his "pre-approval' is actually real, and not some useless piece of paper saying "pre approved!”

Expertise
The Realtor must be very familiar with the property's area. This includes school district information, student enrollment dates, taxing authority details, shopping and transportation information. The Realtor should know what is happening with interest rates, upcoming tax adjustments and due dates for payment. It won't hurt to have an awareness of the local political scene either. Realtors are hired as professionals. As such, they have a responsibility to guide their clients throughout the process. In other words, they must be willing to tell you the truth at all times. Allowing an owner to price a property at the high end of a market, when in fact the Realtor know that the house will not get any traffic or offers, is wrong. They owe it to them to give them their professional guidance, backed up with strong study and information. The goal must be to sell the home and give the owners a chance at their new life, not get a listing just for the agent to feel good. Listing a property does not put any money in the owner's pocket nor does it earn any income to the Realtor. Only selling it does that.

Professional Credentials
Realtors must be licensed by the state they work in either as an agent/ salesperson or as a broker. Be sure to check that all licensing requirements have been completed by their agent. Education is very important and ongoing also.

Be a source of positive information
Sellers, buyers all need their Realtor to be the go-to person to tell them what is happening in the market. Where do most people get their information from? The daily news, that’s where. And what does the mainstream media, blogosphere, and most websites say about the real estate market. ITS DOWN 27%, THE SKY IS FALLING, RUN FOR THE HILLS, PRICES ARE HEADING TO HADES. Geez, if I was a person shopping for a home, or a seller trying to decide what to do, the one person you MUST count on for great advice should the Realtor. He or she must be the conduit of what good is happening in the world of real estate, interest rates, and job stats, all of it. If their Realtor is a negative person, get rid of him and find someone to work with that is a positive beacon for the industry.

If you are buying or selling a home do not hesitate to speak to Anthony Fontana at LiveSpot Realty Group

Anthony can be reached at 917-331-9686 or 631-470-1251

Some Great Insight on the Housing Crash

noreply@blogger.com (Anthony Fontana) — Mon, 21 Mar 2011 18:56:00 +0000

I just read a great article written by Michael Snyder, editor of theeconomiccollapeblog.com regarding his take on the housing crash. Michael gives some good examples of what has happened, and he gives his take on where he thinks its going. I don't necessary agree with everything he said here, but its a good article with a lot of food for though. Give it a look!

http://www.businessinsider.com/amazing-statistics-about-the-housing-crash-2011-3

Anthony

Spring is in the Air. It's time to buy your new home.

noreply@blogger.com (Anthony Fontana) — Sun, 20 Mar 2011 16:09:00 +0000

Everything I've been reading in the past two weeks are showing very positive signs that the economy is finally moving in a decent direction. We have a long way to go, but the signposts are up ahead. There are five clear signals that say 'BUY' right now. You need to study your local market carefully because the national market is just a combination of all local markets. Many local areas are seeing stable or rising prices, inventory reductions, unemployment rate decreases and personal income increases. We are not out of the woods yet, but things are definitely looking up.

1. Personal Income

According to the Bureau of Economic Analysis at Bea.gov personal income increased $133.2 billion, or 1.0 percent, and disposable personal income increased $78.3 billion, or 0.7 percent, in January, according to the BEA. Personal consumption expenditures (PCE) increased $23.7 billion, or 0.2 percent. In December, personal income increased $56.6 billion, or 0.4 percent, DPI increased $48.5 billion, or 0.4 percent, and PCE increased $56.5 billion, or 0.5 percent, based on revised estimates. A trend of increasing income bodes well for housing as more people have more money, they are willing to take on more risk.

2. Jobs

Regional and state unemployment rates were generally unchanged in January. 24 states recorded unemployment rate decreases, 10 states registered rate increases, and 16 states and the District of Columbia had no change, the U.S. Bureau of Labor Statistics reported today. Thirty-nine states and the District of Columbia posted unemployment rate decreases from a year earlier, 9 states reported increases, and two states had no change. The national jobless rate fell by 0.4 percentage point between December 2010 and January 2011 to 9.0 percent, 0.7 point lower than in January 2010. In January nonfarm payroll employment increased in 35 states and the District of Columbia, and decreased in 15 states. Visit the link below for information on your specific area.
http://bls.gov/news.release/laus.nr0.htm for summaries for your specific area

3. Recent Sales Activity.

Many areas have an increasing number of sales, and a decreasing inventory of houses for sale. There are three factors that you must take together, housing inventory, sales volume, and prices. If your area has a large inventory of homes with few actual transactions, this is a negative situation. Its like having a lot of apples but only a few people wanting the apples. Of course the opposite is true. If the local inventory is dropping and sales are picking up, this is good news for your area. Visit your local boards of realtors’ websites where you can find the monthly stats for your area.

Visit http://www.census.gov/hhes/www/housing/hvs/currenthvspress.pdf

4. Construction permits are an indicator of builder sentiment, and by extension, future housing activity. These are not as reliable as jobs or sales-trend data, but they can give you a good feeling on a local housing market. Visit the following link to a detailed spread sheet at the National Association of Builders that will give you specific area figures – The link below is an excel spreadsheet.

http://www.nahb.org/fileUpload_details.aspx?contentID=55104

5. Mortgage Availability.

As a Realtor, I know that a house needs to sell twice. The first time it sells is when the buyer and the seller agree on a price. The second time, and arguably the most important time, is the mortgage bank's underwriter agreeing to the value from his/her analysis of the appraisal, local market figures, and estimates of value from various computer generated valuation models. The mortgage market has been somewhat tight for the past two years as lenders exited the business, credit tightened, and values and incomes dropped like stones. That said, there are signs that mortgages, especially jumbo mortgages, are being approved in increasing numbers as credit is eased a bit. With fixed interest rates at historically low levels locking in a cheap mortgage on houses that are 30-40% less than two years ago is a great way to benefit from the housing downturn we've all experienced.

Give your local Realtor a call and find out how the market is in your area. Use an expert so you can avoid the pitfalls of going it alone. If you are on Long Island, or NYC, give me a call at 917-331-9686 as I'm a licensed sales person, and member of LIBOR and NYBOR. You can visit me at http://activerain.com/afontana or http://tonyfontana.com/specials for a great deal on real estate commission rebates we are offering.

Good luck!

Debit Card Debacle Must Be Cleaned Up

noreply@blogger.com (Anthony Fontana) — Thu, 17 Mar 2011 16:11:00 +0000

Another Day, another mess to fix from the 111^th Congress.

I’ve been posting on this issue for a few days now. The new Federal Reserve Bank rule to cap prices on what banks may charge merchants each time they swipe a transaction will take effect in April unless the new Congress steps in to push this off and study the effect it will have on the market. In my opinion, and in the opinion of other banking industry experts, this new rule will threaten the flow of credit to low-income Americans and promises higher fees on all bank services for nearly everyone else. As I’ve said in earlier posts, it’s the consumer whom Congress purports to help, but who gets it in the neck in the end. The financial reform mess called Dodd-Frank has a provision inside that is basically a hit to giant retailers, while whacking the banks yet again.

As reported in WSJ, CNBC and others, under current rules, every time a customer uses a debit card in a store, the issuing bank charges the merchant a small transaction fee, which represents a percentage of the sale. Under the new Fed rule, which will take effect in April unless Congress acts to stop it that fee will be capped at 12 cents per transaction, reducing the charges by some $12 billion to $14 billion and in effect transferring the cost of debit cards from the merchants who pay the fees to the consumers who use them.

Naturally the merchants applaud this because it reduces their costs by as much as $ 14 billion, and they “promise” to reduce prices accordingly. Don’t hold your breathe because price reductions will never happen. The merchants’ windfall will be recouped by the banks who will simply increase checking account fees, charging for debit card usage if they can, or simply requiring maximum debit card transaction amounts like the $ 50-$100 limit being discussed at Bank of America. I've met with Chase bankers and they have told me that the bank is considering maximum debit card transaction limits, and they have already eliminated free checking tied to the quantity of debit card transactions.

Congress’s meddling in the financial markets has proven to be a bad thing to consumers. Just look at the 2009 effort to regulate credit cards. Price controls set in that effort have lead to denial of credit to marginal borrowers, cutting of credit limits without warning, cancellation of entire lines of credit and more. Many of these sub-prime borrowers have been forced into the arms of payday lenders (some of the most expensive loans known to man).

Write on a chalk board 1,000 times: Price controls on credit lead to . . . less credit.

Visa to let people pay one another using credit, debit cards, competing with PayPal

noreply@blogger.com (Anthony Fontana) — Wed, 16 Mar 2011 18:04:00 +0000

Visa has just announced that is is creating a service to compete directly with Pay Pal. A lot of people don’t realize that Paypal is not a bank, and it is not subject to Banking regulations. They can seize and hold funds without justification for any reason they deem fit, and you can do nothing about it. Now, if you need to pay your babysitter or send money to momma, but have no cash on hand, you will soon be able to send payments directly to their Visa Card! The service will allow people to use their own Visa or a bank account to send money to a personal Visa debit, credit or prepaid card. Users also may bring cash to a participating bank to make a transfer.

You will be able to send money using a recipient's mobile phone number or e-mail address. In those cases, recipients will receive a message that someone is sending them money and then enter their own Visa account number to receive it. Money transferred to debit and prepaid cards will be treated as deposits. Money sent to Visa credit cards will be treated as a payment.
The increasingly competitive field of person-to-person payments includes eBay's PayPal and a handful of other companies. One advantage Visa will have in the market is that there are about 1.85 billion Visa cards in circulation worldwide. Visa has a huge international money transfer business, and this product will be a great fit for its existing model. Kudos to Visa!

For a free Visa debit card, assess to Discount Health and Wellness benefits including Doctors on Call and Aetna Dental discount programs, and a free LiveSpot web address for life visit http://tonyfontana.com today!

Another Bureaucrat Overreach

noreply@blogger.com (Anthony Fontana) — Tue, 15 Mar 2011 19:33:00 +0000

Elizabeth Warren, an unconfirmed bureaucrat heading up the new Consumer Financial Protection Bureau, or CFPB, has proclaimed that financial institutions should not be forced to build their business models around any unfair, deceptive or abusive practices. This you can see right on their website at consumerfinance.gov.

My question is why then is she trying to extort from these same companies and regulate their businesses despite having no discernible experience even running a financial institution?

Last year Wells Fargo, Chase, Citi, HSBC and a host of others were accused of using robo signers when creating foreclosure documentation. While thousands of foreclosures were affected, few people lost their homes without cause. The issue was a technical one, and the banking departments regulating these companies have suggested they clean up the mess, which they are, and pay a small fine. Most of the homeowners had not paid their mortgages in months or even years. Not to be deterred, Warren has decided to try to hit the banks with $ 20 billion to “settle” the investigations, and force these banks to submit to her permanent oversight.

Here are some highlights of her 27 page “proposal” to the banks.

Mortgage servicers must submit to her permanent regulatory oversight with new reporting and administration burdens;
Force the banks to reduce borrowers’ mortgage principal in some cases;
Force servicers to perform “duties to communities” such as preventing urban blight.

The CFPB was created by the Obama administration to run without any congressional oversight. In fact, some of her “proposals” were deemed unacceptable and dangerous in previous Congresses by those we elected from both sides of the aisle. She has never had to be confirmed by Congress yet she is using her position to tell banks how and to whom to lend money. I have had a long career in consumer banking and I saw first hand how Government interference in the housing market forced banks to lend to unqualified and very risky borrowers under the Community Reinvestment Act and other regulations. Fannie and Freddie were told to buy these mortgages to continue the vicious cycle. These policies are a direct cause of the housing bubble as cheap money flowed to unqualified people, driving up home prices to unsustainable levels. A collapse was inevitable. We are living with the results of it now.

It’s important that the housing market be cleaned up using market forces. Suspending foreclosures, forcing the reduction in principal balances, and other egregious practices will further dampen the market, delay and prevent its eventual recovery. Warren needs to be vetted by Congress as to her qualifications, and if necessary she needs to be removed from her office, and the CFPB shut down. It’s a political machine not a true protection agency in my opinion.

FED Statement released regarding interest rate levels

noreply@blogger.com (Anthony Fontana) — Tue, 15 Mar 2011 18:43:00 +0000

The Federal Reserve Bank just announced its intention to keep rates low in light of what appears to be the potential for inflation to remain low. They intend to continue purchasing $ 600 billion in long term securities to facilitate their goals.

This is the full text of their statement.

Information received since the Federal Open Market Committee met in January suggests that the economic recovery is on a firmer footing, and overall conditions in the labor market appear to be improving gradually. Household spending and business investment in equipment and software continue to expand. However, investment in nonresidential structures is still weak, and the housing sector continues to be depressed. Commodity prices have risen significantly since the summer, and concerns about global supplies of crude oil have contributed to a sharp run-up in oil prices in recent weeks. Nonetheless, longer-term inflation expectations have remained stable, and measures of underlying inflation have been subdued.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate remains elevated, and measures of underlying inflation continue to be somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. The recent increases in the prices of energy and other commodities are currently putting upward pressure on inflation. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations. The Committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.

Debit card $50 spending limit coming to a bank near you?

noreply@blogger.com (Anthony Fontana) — Fri, 11 Mar 2011 04:37:00 +0000

JPMorgan Chase, one of the nation's largest banks, is considering capping debit card transactions at either $50 or $100. The cap would apply even if you run your debit card as credit. It seems that our illustrious congressmen have decided that banks are making just a tad to much money on interchange fees paid by merchants where you shop. According to CNN every time you swipe your debit card your bank charges the retailer an average fee of 44 cents, which it shares with its partners. The merchants pay about $ 16 billion in fees, this in a multi trillion dollar economy. They include these fees in the prices we all pay. As part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents.

The new regulations will cost Chase about $ 1 billion. Most of the large banks will feel the pain to their pockets, but not to worry my dear consumers. The banks will simply recoup there lost profits from, you guessed it, YOU! The merchants, bless their little hearts, will simply keep the extra money that they are not paying to the banks. In other words, consumers take it in the neck. Again.

Chase is a little ahead of the curve here, currently testing $ 3.00 monthly fees on debit cards and $15 checking account fees. As I've said in a previous post. Free checking is going the way of the Dodo Bird. If Chase goes forward on this, you can bet your sweet bippie that other large banks will follow. Dodo birds of a feather flock together.

If a cap like this does make its way into accounts across the board, consumers would be forced to write checks, withdraw cash from ATMs, or put their spending on credit cards. "The whole model on the debit card side is in flux because of Dodd-Frank," said Brian Riley, senior research director at financial services consulting firm TowerGroup. "The unfortunate thing is that the people who will really get hurt on this are the people who need the most help."

Consumers are not always qualified for credit, and in fact over 60 pct of card transactions today are debit card not credit card. If you have available credit, you are now going to be charged huge fees to access it as banks try to recoup lost revenue from that method of payment. Additionally, ATMs typically only dole out a limited amount of money at a time and checking accounts are being loaded with new fees.

For information on obtaining a Free Visa debit card, click here today.

IS THE DOOR TO A NEW MORTGAGE CLOSING?

noreply@blogger.com (Anthony Fontana) — Wed, 09 Mar 2011 16:58:00 +0000

I’m not looking to yell fire in the room when there is no fire. But I need to let you know that based on what I read on a daily basis, it is clearly going to get more difficult and more costly to finance a house in the future. If you’re on the fence deciding whether to buy or not buy, or to refinance, get off the fence. It hurts to sit on a fence anyway.

There are several factors at play here namely;

The mortgage market is facing pressures from new laws and regulations, still-declining home prices and the ongoing need for government-owned mortgage players to shore up their finances. Mortgage origination will be less than $ 1 trillion this year, down from $ 3 trillion in 2005
Mortgage pricing is on the rise. The current rates hover around 5% for a 30 year fixed rate loan. That’s up by 1% from last year, but still an excellent rate that you need to take advantage of. The rate MUST climb as the economy improves. So, things get better in the economy, and rising rates with dampen that enthusiasm;
Home prices are bottoming out in some areas, firming up in others, and falling in still others. A better mortgage today may be a great trade-off to the possibility of lower prices tomorrow. Think about the huge cost of borrowing at a higher rate over 30 years, versus a price drop of a few thousand dollars now;
Fannie Mae and Freddie Mac are adding new fees to loans to people with the best credit and raising existing loan fees which started on March 1^st for Freddie's while Fannie's kick in April 1. Citing a need to address risk and price their services appropriately, they will assess a fee of 0.25% to 0.5% of the loan value on borrowers with credit scores of 720 or higher who put down less than 25% of the purchase amount. Fee for scores below 720 will double to 1% if down payment is less than 20%;
FHA will require an up front mortgage insurance payment of 1% of loan, and an annual premium of 1.1% to 1.15% when the increase goes into effect on April 18;
New restrictions proposed by the Obama administration will include phasing out
Fannie and Freddie, 10% down payment minimums, and lowering high cost area loan amounts to $ 625,500 down from current limit of $ 729,750. The limit in non-high cost areas will remain $ 417,000 for most markets;

Its time to move on buying a house! Let us help you. Visit me at http://tonyfontana.com and click on the Specials link, or you can visit right hear at http://fontana.livespot.com/specials

There you will find my real estate rebates link. Read about our programs, and give us a call if you are interested in buying or selling in New York State.