Why The Real Estate Market Crashed and How It's Affecting Your Home Business

Many people across the country are having trouble understanding why their home values have dropped so much.

Since i've been in the banking industry for 15 years, 10 of which are specific to mortgage lending, i'm going to explain why, and when you can expect home values to stabilize, and start to apperciate again. And, more importantly, how it's affecting your home business.

Up until the end of 2005 and beginning of 2006 (when the real estate market peaked) we were always taught, the best investment to make other than gold, is real estate. Robert Kiyosaki teaches it, Donald Trump teaches it, and I 100% agree with it.

Then why did home values drop so much?

Well the simple answer is bad lending practices. And every bank is guilty of it. Some banks were a little more conservative than others, but they all did it, and are now paying the price, with millions of dollars in losses.

I'm not going to get into all the mumbo jumbo about how the investor portfolios work, and the pool of money they have to work with etc, etc, etc. Just understand this. The rule of thumb was always, and always has been that homes apperciate in value, they don't depreciate, right? Wrong?

There was a time when banks had strict underwriting practices when someone wanted a home loan, or home equity loan. They would require bank statements, full tax returns, current paystubs, plus a clean credit history with no bankrupcy's or charge offs.

The practice over the last few years, as we've seen, was to just get the loans done, no matter what.

Over the last few years banks loosened their lending requirements. They waived income verification on people who had sub par credit. (People who had no business buying a home, because they were not good crdedit risks, never paid their bills on time, and could care less if they defaulted on a home loan) So it was very easy for people to lie about their income, just to get their application approved. (Which happened a lot)

Banks also increased their lending limits. People were allowed to take out full 100% equity in their homes. And people could literally get 1 to 2 million home equity loans, with no documentation, or no fees, whatsoever.

We also saw some banks giving people 125% mortgage loans. So people were already negative 25% equity in the home they lived in.

Another mistake was giving people 3 year adustable interest only 2nd mortgage loans. With no option, or guarantee to refinance when the 3 years were up. Even if the payment doubled at the end of the three years, the bank didn't care, and neither did the consumer. The idea was "our home value will be higher at that time, and we can refinance anywhere".

I even saw one mortgage where the 1st mortgage was a credit line attached to your checking account. And you were required to have Automatic deposit of your paycheck into your checking account. Every time you got paid, the balanced of your mortgage went down. But everytime you withdrew from it, your principal balance went back up again.

We can see how these banks were setting themselves up for failure with these rediculous products.

Honestly, none of them should have been done in the 1st place. But with constant pressure to compete with other banks, and mortgage companies, and the threat of losing business, the attitude was "just make the deal work, and push it through as fast as you can".

So why have the home values dropped so much?

We discussed before how the market peaked around the end of 2005, begininning of 2006. Well the values plateaued and kind of stagnated. Without all the gritty details, just understand the bubble had to pop sometime and the appreciation of home values, had to slow down sometime.

So it did. But what happened next is the gruesome effect of bad lending practices that affected the entire country.

Remember some of those adjustable 3 year mortgage we discussed? And 125% mortgage products. And no document requirement for people with bad credit. And 100% interest only mortgage products.

Well some of those people could get approved to refinance their home because the value did not go up, the value went down.

So here they are, stuck in a home, not worth what they bought it for a few years before, and the payment is now double.

What next?

Well as you could expect, thousands of people literally walked away from their homes. Mailed the keys back to lenders, and moved out in the middle of the night.

I was literally witness to two families that did this on my street. Why they were so secretive is a mystery to me. I guess they were just embarassed.

So now we have homes that have been foreclosed on. Sometimes vandalized because the owners are upset and trash the home before leaving. And the sale price is most of the time less than 1/2 of what the home was purchased for, just a couple of years earlier.

Now there's homes in the MLS database, selling for rediculously low amounts. So you go to list your home for sale, and the only comparables are the foreclosed homes, which drives your value down. So after your home sits on the market for a year, you sell it for far below what you should, but you have no choice, because no one is buying it, and what's worse, is you pay the buyers broker commission.

So what happens when your neighbor goes to sell his home? The same thing. Now your home is listed as sold for a rediculously low amount, in addition to all the foreclosed homes.

I think you are starting to get the picture with this domino effect on the entire real estate market throughout the country.

So what's next, when will the madness be over?

Well I have good news for you.

Right now during the madness is when people are looking for other alternatives to make money. People are open to home businesses. People are looking for alternative ways to make money.

People are never prepared for this. They sit on their laurels, blind to the possiblity that they may be out of work someday. Real estate agents and 1st and 2nd mortgage loan officers are the worst.

A couple of years ago they turned their noses up at me, and said "I made a million dollars this year, why do I need you". Well now they all have egg on their face.

I sometimes feel like I'm in the matrix and these people need the pill to wake them up from the fantasy land they live in. Yeah, my nightclub and stripclub did a million last year too, but I still have an internet business to provide a second income if that business ever fails, or I become ill and can't run it.

So now is the time to capitalize and bring in hordes of people to your home business
because NOW, they're willing to pay attention.

As far as the real estate industry is concerned, people are over reacting. Almost all of the bad mortgage companies involved in "subprime lending", have gone out of business. They closed up shop in mid 2007. In addition banks are no longer doing bad loans.

So most of the adjustable rate loans, and interest only loans, have already been foreclosed on, and are pending sales. The people with bad credit, that lied on their applications and couldn't make the payments, have also already been foreclosed on. The government is also working with lenders to stop foreclosures, and come up with refinancing solutions to save people's homes.

Realistically in the next year and 1/2 all of the foreclosures will be sold, eliminating the negative impact they are having on surrounding home values. When they are all gone, the only homes being sold will be seller to buyer, or new purchases.

I think the government realizes this as they have put a freeze on the prime interest rate, until October.

After all the seller should be the one holding all the cards (if they know what they're doing). When this shift in the market happens, and the seller calls the shots in the sale, we will once again see a stable market, with slow appreciation in home values again.

Thus my conclusion. The best investment next to gold, is real estate.

William Whitlow
http://www.williamwhitlow.com

How To Post In A Forum Correctly, So You Don't Look Like An Idiot

Right off the bat I'm gonna tell you that this post is not going to be pretty.

I'm gonna punch, kick, and slap the people around that are the biggest offenders that post in Forums like idiots.

I'll probably say a few things that will offend you, so you may want to stop reading right now.

Still with me?

Good.

You should know my background so you know exactly where my knowledge is as far as an authority figure.

I was involved in a little MLM company called Primerica Financial when they got their start back in 1996. Got to meet A.L. Williams and other gurus at that time. It was great training.

Then I joined with a mickey mouse company called General Dynamics which involved magnets. Later on I was involved with a company called Travel Dynamics, which was a travel company.

Then I stopped Network Marketing to build my retail businesses.

I own a Nightclub, and I own a Stripclub, both very successful. An old friend approached me with XANGO, and after some due diligence, I realized this company was going to take over the world, and the rest is history. Now i'm climbing my way to the top.

So you can say i've been around the block and know how to build relationships with people.

When posting in Forums you are supposed to share information, ideas, help eachother, even joke around a little. It's a social networking haven for people on the internet.

Here's my question?

Who the hell said it was O.K. to come into a forum and purposely try to discredit someone!!

These morons need to pick up the book "How To Win Friends And Influence People", and read it 20 more times. After they're done reading it, keep a copy on their desk for quick reference, and tatoo the title on their forehead, so they don't forget the principles.

It clearly states that everyone thinks they are right. So what good does it do to go into a Forum and correct someone. All you're going to do is piss them off.

I mean, what's your purpose in "trying" to correct someone in a forum post. So everyone will think you are more knowledgable than the person that wrote the new thread.

Nope, they're going to think you an @$$. Because that's exactly what you are, a big fat Jacka$$.
Are you trying to make friends, or repel people with your big, giant can of Raid!

When I post a new thread, it's for 2 reasons. The 1st is to help people, and keep them informed, especially when it has to do with my company. The 2nd is so other people that see me posting new threads, see me as an expert, because I post good free content, that will drive traffic to my site.

I've posted on milestones about XANGO on a few diffferent occasions, and I always get some idiot going in there and saying something negative.

Something along the lines of "well that's not accurate", or "be careful what you say because of this", or "i'm not going to share this information because of this". Well that's fine, you moron, but keep it to yourself.

How about saying something like, "yeah I read that, it was a good story". Or "good post, i've tried that before, but have also tried this".

Why not contribute in a posotive way, and if you have something negative to say, either keep it to yourself, or send a private message to that person.

Why am I so pissed?

Simple. Because I know for a fact that these people don't know "jack" about the internet. They also don't know "jack" about my company. And they also don't know "jack" about Network Marketing. If they did, they wouldn't run around in forums trying to be right all the time.

Seriously. Am I dealing with a bunch of spoiled brats that had no brother or sister, growing up, because that's what it feels like.

They've been in MLM for like 6 months. Bought some course on how to do Social Networking, or how to drive traffic to their websites, and all of a sudden they're a Network Marketer? Give me a break. You need a couple of more years under your belt spanky.

Try attending some business briefings at hotels, attending a Club Entrepreneur meeting, a Dan Kennedy meeting, a chamber of commerce meeting, a BMI meeting, or throwing a home party.

Oh? You can't? Why not?

Oh, I forgot, it's because you suck. You have no experience in MLM at all other than a few amateur tricks to drive people to a website. You don't know how to talk to people. You don't have a 1-3 foot rule approach. You have no idea how to do direct mail marketing, call cold leads, or even stand in front of a room of prospects and give a presentation, and you're going to come into MY FORUM, and try to correct me????

Did you get your MLM degree in a cracker jack box?

Bottom line, network marketing is a people business. If the internet goes away tomorrow. Guess what? You're broke because YOU haven't learned a damn thing.

I suggest going out and hiring Mark Weiser, Todd Falcone, or Aarron Rashkin, and get some real MLM skills under your belt.

Until then, stay the hell off all my forum posts.

Happy Prospecting,
William Whitlow
http://www.williamwhitlow.com
480-332-3649

How To Keep Your Distributors Committed

When a new distributor starts in a new MLM company they are usually all hyped up and excited to move forward.

Your repsonsibility as a sponsor is to get a check in your distributor's hand as soon as possible.

Once your new recruit gets a check in their hand they will start to feel just how real it is.

My number one assignment is to create a tax file for my distributor.
It's a real simple hanging tax file folder.

I coach them on the different sections of the tax folder and advise them to start saving gas receipts, rent, cell phone, internet bills, etc, etc, etc.

As they put the receipts in the correct sections, psychologically they realize the tax breaks of their home business.

They start to understand the tax leverage they now have owning their own business.

My number two assignment is to get a few tools out to them so they can start working their business A.S.A.P.

After I help them set up their website, I mail a few different CD's and Literature my team utilizes for the different 1-3 foot rule techniques.

This way they have a track to run on, and a way to prospect people by letting people borrow their audio, or visual tools. Or the websites. Or the meetings.

My number three assignment, just like Old School Amway is to drive throug their warm market as soon as possible.

I make it as easy as possible for them.

I explain that I want them to create a list of people that need our product, and create a 2nd list for only six and seven figure earners that they're afraid to talk to.

I like them to approach their warm market with some of the tools I've mailed them.

Next I like to work their "chicken" list my self with my upline on the phone.

Third party edification is powerful. Since I'm a business owner, and the leaders I work with are also business owners, their "chicken" list is more receptive when we say we've gone into business with their friend or relative.

Time and time again we use this "magic formula", and can usually get a check, or a few checks into our downline's hands, this will jumpstart their business and keep the attrition to a minimum in your downline.

I suggest the above formula, it's worked time and time again.

Of course you will have the occasional person who will not show up for class, and even give you one warm contact.

When this happens, I simply apologize and explain I cannot work with them. If they don't believe enough in their new business, and my system, then we cannot work together, and I wish them good luck.

I don't want a bunch of generals trying to run their own army, when they have no idea what they're doing. Usually this will make them wake up, that I they need me, and if they don't, so what, next.

Take these techniques to heart, and try them with your new prospects, and see how your retention rate shoots up.

Happy Prospecting,
William Whitlow
http://www.williamwhitlow.com
480-332-3649 (personal cell)

William Whitlow Invites You To Join His Internet Marketing Team

More millionaires are being created from this one direct sales company, than any other company in the history of Network Marketing. The Home Business William Whitlow is involved in is on target to reach 1 billion in just under 7 years.This will make us the fastest growing company in the history of any business in U.S. history, even faster than Microsoft.Click the link to see why.

Happy Prospecting,
William Whitlow
Home Business On Line Marketer
http://www.williamwhitlow.com

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The Three Step System Guaranteed To Spike Your Prospecting

I want you to understand "why" this simple three step system works. So before I get into "how" it works, i'll give you a little background on time tested marketing statistics.

Most people that have been in any type of marketing understand how many times a prospect must see your message before they buy.

The magical number is 7. Now this is not a number I pulled out of the air. From all the books i've read, seminars i've attended, or webinars/conference calls i've been on, the number is always the same, it's always 7.

A recent study indicated that people are exposed to over 3,000 advertising messages a day.

You as a network marketer should be very concerned with this statistic. How in the world are you going to get into the mind of your prospect, and get them to pay attention to you.

That's your first obstacle.

Your next obstacle is figuring out how to get your message in front of your prospect 7 times before they buy.

The answer is easier than you think.

Most network marketers will purchase a list, or generate leads on their own. They call their prospects one time, the prospect says they are not interested, then they throw their leads in the trash.

This is not how marketing is supposed to work.

Most people you call either forgot they inquired about wanting to work from home, or if you generated the lead on your own, they changed their mind by the time you got to them.

We all know timing is everything in MLM. And if you're talking to your prospect when the timing just isn't right in your their life, they're gone.

This system will guarantee to not only get your prospects attention, but also "catch" them at just the right time in their life when they're sick of they're financial situation, and ready to make a change.

Here comes the three step system.

Now there's this beautiful little website called USPS.COM. It's the website for the U.S. postal service. Under "mailing services" there's an area where you can have the Post Office, print and mail all of your postcards to your leads, it's a one sided black and white postcard for 21 cents a piece.

Yes, you heard me correctly, it's that cheap.

You may be asking, well I should mail color, or I should mail 2 sided because it's better. Well i've tested it, and the response really wasn't any better, for a couple of reasons i'll reveal in a minute.

(note: you can upgrade to 2 sided black and white, one sided color, or 2 sided color if you like for a little more) .

That being said, let's say you have 100 fresh leads. Now it's very important that at least you have the correct name, mailing address, e-mail, and phone numer. If you don't, it won't work.

What you want to do is upload your excel spreadsheet to USPS.COM, design your postcard (it's really easy, if you don't want to, you can have someone design it and upload your image). It's important to have your face on the postcard, and your name.

You are also going to want to mail a postcard to yourself, so you know when your prospects have received their postcard.

It's very important to have your name and photo on the postcard, because what you're doing is branding your name in to the mind of your prospects.

It will take approximately 7 days for your prospects to get their postcard (due to print time, and mailing time)

Now, after you've put your order in to the post office to mail out all 100 postcards to your prospects, you need to put all 100 of your prospects into your e-mail auto-responder the same day.

It's also important to have you picture, e-mail, phone number, and website in all of your e-mails.

Once again, you're branding your name and picture into the mind of your prospects.

Here's the reason behind uploading your e-mail list to the auto responder the same day.

By the time they receive your postcard 7 days later, they should have received at least three e-mails, so they should be farmiliar with your name, and face.

Keep in mind by the 8th or 9th day, some of these people will of already visited your website, or better yet, called you.

Now on the 7th day you should of received your copy of the postcard in your mailbox. Once again, this is how you will know your prospects have received your postcard.

I typically call my prospects on the 9th day, just to make sure they have my postcard in their hands. And it may still be sitting on their kitchen table.

Here's what's going on in the prospects mind. They've seen 3 of my e-mails, they've seen my postcard, and when they come home from work, they receive my voicemail (or I could get them on the phone live) . So they're very responsive when I call, because they know me.

Now, within a one to two week period, i've put the message in front of my prospect 6-7 times.
I've accomplished my goal of getting my message in front of my prospect enough times, so they will sit up and pay attention.

But, it doesn't stop there.

My e-mail autoresponder is still on. So they're going to continue to get messages from me for the next 12 months. Believe me, this stuff works, and later on down the road, when the time is right, they will probably call me.

As a side note, later on in the month, I may call a second time. After that it becomes chasing, and I don't want my prospect to think i'm chasing them. So 2 phone calls at the most, then I let my autoresponder do the rest.

This should really increase the response of your prospects, and spike your recruiting efforts.

Happy Prospecting,
William Whitlow
http://www.williamwhitlow.com

The Secret On Line Advertising Source The Guru's Won't Tell You About

I'm sure most of you remember Napster, when they first started out.

They were a pirate site where you could just download music for free.

This happens continuously accross the web. People start little pirate sites where you can download free movies, music, videos, etc. And it's all free.

Well, what the Guru's don't want you to know is that you can advertise on thes pirate sites for like pennies.

How would you like to have tons of traffic to your website for like 2 pennies a click instead of $5.00 a click on Google? I sure would?

So where do you find these sites.

That's the hard part. Even in this big techy world we live it, ironically it's usually word of mouth (Just like MLM).

Teenagers are your best source, and people that are into graphic design, music professionals, and people that create videos.

These people are in this "click", and they all keep in contact with one-another, and know where to get the next movid for "Free"

Last year I was on this website watching the movie "300" the day it came out. The same thing with "Transformers".

Now, you don't want to create one of these websites yourself, (you don't want to go to prison, do you?) you'll need to do a little digging, but you can find them.

The bad part is they are only up for a few months, then they get caught, and the website is erased.

But that's not your concern. You're concern should be to filter as many people to your website, for as cheap as possible, and this is the way to do it.

I've gotta go now, some men in black suits are trying to knock down my door with a battering ram.

Happy Prosecting,
William Whitlow
http://www.williamwhitlow.com

Trade Show Booth Setup For Your MLM Opportunity

If you're going to set up a Trade Show booth to expose people to your Network Marketing Opportunity it is very important how you run it, and how you set it up.

First and foremost you should co-op with 2 or 3 other people on your team to keep the cost down for your space. You should also rent out 2 booths instead of just one because you'll get a substantial discount.

You should bring in 2 Tables for your booth and set them up in a L shape along the back of the booth. You want people to come in and take a tour of your booth.

Depending on your product, you will want to have testimonials of people that have tried your product, and the success they've had. It could be health, or money they've made. I suggest little framed square pictures framed up all along the inside of your booth walls.

A banner along the back of the wall of your booth, and out front is suggested.

Balloons are a must with your company logo on the balloons. Make sure there are lots of them on the outside 4 corners of your booth.

A big flat screen T.V. with clear sounding speakers should play a constant loop of your opportunity to draw people in to watch.

There should be a box for people to drop their names in it for free giveaways 2-3 times a day. The form they fill out should have their name, add, phone number, and e-mail on the form. Note at the bottom, incomplete entries will be disqualified. These will be your leads to follow up on.

You should dress very nicely. I suggest if there is 3-4 of you, all wear a polo t-shirt with the company logo on it. Slacks, and nice dress shoes.

Make sure you have free samples to give-away. Or sell the samples very cheap.

Have some literature available for people to pick up as they walk by, make sure the literature has your name stamped on it with phone number so they can call you.

You can give out CD's too, but I suggest selling those for a buck a piece.

You should have literature also explaining the business briefing coming up where they can learn all about the business opportunity.

Be very outgoing, greet people, and be willing to talk not only about the product, but also money. People are people, you need to see which they are more concerned with. Just connect with people on a personal level and build trust with that person.

If you can bring a laptop with satellite reception, you can sign people up right on the spot from your company website.

Have plenty of your business cards on you to exchange with prospective clients.

Be prepared to switch shifts, so you constantly have people that are fresh and ready to talk. You should have one group for the morning shift, and another group for the afternoon shift.

Be very creative, the flashiest booth gets the most attention.

While you're there make sure and network with other booths at the trade show. You never know who may be looking for another opportunity to earn some money. A lot of times you have business owners looking to expose their retail business, and would love an opportunity to get involved in a MLM opportunity. Exchanging business cards is always a great idea so you can follow up with them later.

As a side note, make sure you bring yourself plenty of water and food, the fair food can get expensive.

Happy Prospecting,
William Whitlow
Home Business On Line Marketer
http://www.williamwhitlow.com
480-332-3649 (personal cell)

Direct Mail Secret That Will Save You Thousands

If you've used Direct Mail in your Network Marketing Campaigns, you've probably spent thousands of dollars, had poor results, then quit.

I'm about to reveal a secret that will save you tons of cash.

Typically you will hire a professional designer for your postcards, or letters.
Or even worse, you will type them yourself, or try to design them, then print, label, stamp, lug to the post office, and mail out to all of your prospects.

What if you had a place that would do all of that for you.

Here it is.

http://www.usps.com

That's the big secret website.

Yes, I know it's hard to believe!! The U.S. postal service has great, cheap ways to mail your prospects month after month for cheaper than it is to mail.

Let me explain.

Let's say you purchased 200 leads in excel format. You can upload the list to usps.com.
Next you can design your postcard, letter, whatever you like in their back office.

Here's the best part. They'll print, and mail to all of your prospects for you for cheaper than you would if you mailed them yourself.

Yes you heard me correctly.

Postcard one sided black and white is like 21 cents. Black and white 2 sided postcard like 30 cents, and 2 sided postcard full color for 41 cents a piece.

Can you imagine how much more time you will have to work your Multi Level Marketing business letting them do this. It really is a godsend.

If you have any questions, don't hesitate to call me at my phone number below.

Happy Prospecting,
William Whitlow
http://www.williamwhitlow.com
480-332-3649

Direct Mail With Your Network Marketing Business

Many times I mention the word "Direct Mail" with your MLM business, and people look at me like I'm speaking a foreign language.

It amazes me how only 1% or less of Network Marketers use Direct Mail to promote their business. Most people are afraid, or don't want to "waste their money".

Let me ask you this, if e-mail and the internet were completely shut off, and ended, what would you do? I'll tell you what, MLM would not come to an end, and people would return to Direct mail.

If you're looking to move your business forward you should start studying it. I use it in my MLM business and it works very well. People can very easily push the delete button in their e-mail in-box. But once they have my message in their hands, I have a fighting chance.

I think people will eventually start to understand this, and will start to study it again.

A good idea is to co-op your money with your downline, and rent a list, or run a card deck. This way you can have your downline pay for it, and you pay nothing. Have like a 50,000 piece mailing go out, then divide the leads.

Now if you are the one running the campaign, it is important to split the leads evenly. Every 5th person, or every 3rd person, etc.

You can see some serious growth in your Network Marketing organization using this method. Especailly because no one is doing it.

Don't forget to make sure your downline calls the prospects that respond. This is key, people won' t call you, they never do.

It'll be a few years before anyone makes a return to direct mail, i'm sure of it.
Until then, your mailbox is mine, ha ha.

Stay tuned for next time I will reveal the cheapest mailing source on the planet, even cheaper than the U.S. Postal Service.

Happy Propspecting,
William Whitlow
http://www.williamwhitlow.com