TOP STORY: KW Cares about Rock 'n Roll!
America concert kicks off Mega Camp and Masterminds
Start your ultimate week of learning on a high note as America plays in support of KW Cares and One World Theatre.
With albums and hits dating back to the early 70's, America knows how to put on a show! Hits like "Horse with No Name,""Ventura Highway,""You can do Magic,""Sister Golden Hair" and "Tin Man" have kept these hit-makers on tour for more than three decades.
The next day, the ultimate power-duo begins! Mega Camp, August 25-27, and Masterminds, August 26-28, have joined forces and are being held back-to-back, just across the road from one another.
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Click here to find out how to save up to $500 on package deals!
These package deals expire on August 4!
Don't let OutFront gather dust in your market center!
Keep recruits in the loop about our company and culture
Every issue of OutFront provides powerful strategies and inspiration for powering through the shift. Make sure that copies of every issue are prominently displayed in your market center for all associates and for your potential recruits:
- Mail out or hand deliver every issue with a note about particular articles you'd recommend that they read.
- Keep copies on hand, next to listing sheets at broker open houses, and slip in a note about who to call for more information about joining your market center.
Additional copies and back issues of OutFront can be ordered from the Keller Williams University Website.
Focus for May: "Biggest Losers"
The Burnie/Pasadena (Md.) market center proved itself to be a lead generation heavyweight last spring with the "March Madness" competition, lead by David Orso, team leader.
For the month of May, the focus is on being the “Biggest Loser.” With the competitive spirit still in mind, Orso divided agents into two teams. Each day they work the phones for price reductions as a part of Power Hour. The team with the highest percentage of price reductions wins the contest and a free dinner.
Orso explains that the competitions are just another way that agents can motivate themselves to make the calls and accomplish goals. So far four homes were sold as a result of the “Biggest Loser” competition. With more ideas ahead, Orso adds, “We are excited to take Power Hour to a whole new level, and are upping our game because of it.”
Don't forget to power up with MAPS each morning! New videos are posted EVERY DAY!
Click here to watch.
Please submit your Power Hour success stories to marketing@kw.com.
Financing Solutions with David Reed
Taming the Jumbo Mortgage
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Visit Reed's Website |
Everyone knows the jumbo loan market has been out of whack for nearly 18 months. “jumbo” loans, those amounting to more than $417,000, took it on the chin when mortgage investors stopped buying subprime and alternative loans. For that reason, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the housing market: especially those that I call, “just jumbo.”
So what exactly is “just jumbo?” It’s a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000–$600,000 range. Many local markets offer homes in this price category, but the marked difference in rate from conforming to jumbo is slowing down sales. What is the difference in payment between a conforming loan at 6 percent and a jumbo loan at 7.50 percent? On a $500,000 jumbo loan, mortgage payments jump from $2,997 to $3,496 a month. That’s almost $500 more!
Fortunately, with some changes in strategy, we can put a major dent in that increase in payment by buying a property with two loans — a first mortgage and a second. With the first mortgage at or below the conforming limit, the second mortgage then eliminates the need for private mortgage insurance, or PMI. And still, with only 10 percent down on a $500,000 sale.
For example, let’s say we have a sales price of $500,000 and you put 10 percent down. With a jumbo loan at 7.50 percent, the monthly payment on a 30-year note is $3,146 plus a PMI payment of about $188, for a total of $3,334. Using a 40 percent debt ratio means that you need to make about $9,700 per month to qualify.
Now, let’s make the first mortgage for $400,000 at 6 percent (conforming) with a second mortgage at 7 percent on a $50,000, 30-year note. The mortgage payments would be $2,398 and $332 respectively, for a combined total of $2,730. That’s a savings of over $600 per month, and now the income to qualify is almost $1,500 less at $8,200 per month! Do you think that has an impact on affordabilty? I do.
Here's another idea: sellers can carry back that second note to provide some additional income, providing an even better second rate for the buyer!
Written by David Reed, author of Mortgage 101 and Mortgage Confidential. |
Spotlight on: Big City Survival
A recent article on REALTOR.org entitled "Big-City Home Prices are Faring Well" identified Boston, Chicago and Los Angeles, along with several others, as large cities where prices haven't fallen as sharply as other, smaller cities and towns.
Click here to read the rest of the article.
Register today for the latest free MAPS coaching calls.
Mon., June 2 11 a.m.-12 p.m. CST |
Mariana Wagner | Register Now! | |
| Developing Leaders Around You | Wed., June 4 11 a.m. - 12 p.m. CST |
Cheiri Lowry and Michael Fleming | Register Now! |
Click here to see our entire free call schedule.
Each of these sessions is a $49 value, but MAPS is offering
them to you for free!
Market Center Leadership Corner
Ever wondered what's in Mark Willis or Mary Tennant's fridge?
Get on the phone now and find out...
Power Hour is going strong. And with great prizes for team leaders and operating principals (a sleepover at Mary Tennant or Mark Willis' house) up for grabs, the stakes are higher than ever!
The details of the contest are:
Team leaders are competing to recruit the most cappers and mega agents between May 5, 2008 and Family Reunion 2009.
Operating principals are competing to get the most contacts, appointments, and signed mergers and acquisitions between May 5, 2008 and Family Reunion 2009.
The prizes of the contest are: 
- Free registration for Mega Leadership
- Exclusive dinner at Mary Tennant’s residence
- One night stay at Mary Tennant’s residence for female team leaders and operating principals who are among the winners
- One night stay at Mark Willis’s vacation house for male team leaders and operating principals who are among the winners
At the end of each week, log on to the KW Intranet, click on "My Information" then "My Contests" to log your weekly progress.
Operating Principal Bonus Prize!
The five operating principals with the most mergers and acquisitions between May 5, 2008 and August Masterminds will win a weekend trip to New Orleans for two.
Make sure to download the Power Hour Facilitator's Guide and learn how to maximize Power Hour in your market center.
Scripts for Recruiting Great Agents now on audio
Keller Williams University and the MAPS Institute put the power in your hands (or ears) with 44 practice-proven audio scripts that cover:
- Leveraging allied resources
- Closing recruits
- Handling objections
- Recruiting Megas
- And much more ...
With this great resource on CD you can master your business while driving to your next appointment or while relaxing with your feet up at home. The data CD includes all 44 scripts in both PDF and Word formats.
Click here to purchase these powerful scripts now.
Holly Perry teaches Recruiting by the Book
As part of Operation Heart to Heart 2, Holly Perry, Millionaire Systems team leader, has been criss-crossing the country for several months, teaching leadership how to get the most out of The Millionaire Real Estate Agent — to rave reviews .
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"To NOT use the red book would be like playing golf without a complete set of clubs. On some holes it may not matter, on others, it would make all the difference in the world." P.R. "Randy" Cooney, Team Leader, Scottsdale, Ariz. |
Click here for more information and to see when Holly Perry will be in your area.
Comments or questions for THIS WEEK@kw? We want to hear from you!
Contact us at marketing@kw.com.
