Some of you have already detected some errors and ommissions in Neil’s article but heck, Neil would never let a few extra facts get in the way of a good marketing strategy that helps position him as the RE Knight in Shining Armour!
That aside, I did think this particular line was a real “cracker”….
If that fails, the third step is develop a Code of Conduct.
I guess this means he has no documented professional standards he expects his devotees to work to.
Hmmm I actually thought professional standards (with a good dose of ethics thrown in as well) is what the Jenman System is all about.[]
Let’s get serious, he’s been on this for ages now and I don’t hear the wrappers saying how their business’ are collapsing due to the “nay sayers”.
Then again, if I’m wrong, wrappers who are finding it hard to do business due to articles like Neil’s could put a post up on here to educate us all.
Seeing as you’re all chatting about Uncle Neil J, here’s something you might find amusing… well I have anyway.
Yesterday I was banned from one of his “accredited offices!
Seems to me they just didn’t like the fact that I wouldn’t submit a “plain vanilla” offer – the main concern was that I wouldn’t put 20% deposit down with the offer.($40k)
Anyway, I was told not to come back until I would put down at least 10% ( that’s 20k )… only then would they even consider putting in any conditions.
Funny thing is it wasn’t so long ago I bought a house through that very the same office on $500 deposit.
As somebody said “You haven’t made it until you get banned from a RE office!”
Oh yeay, somebody mentioned about agents leaving NJ accreditted offices.
Having spoken with many of the ex’s, it’s usually not becasue of the ethics issue but rather things like;
a) stupity of the “no advertising” policy ( when in fact most do advertise but can’t admit it!!)
b) the huge number of missed opportunites that go due to restrictive practices
c) clear contradictions in the “ethics” policy that is rigidly enforced
But heck, I love the guy (NJ) because he is so good at getting his noodle on TV and pushing his “no brainer” marketing.
Is wrapping good or bad? From the comments on here there appears to be two angles the response come from;
1) The actual system of wrapping
2) The person doing it (wrapper)
Don’t confuse the two as they are seperate.
The wrapping system is very fluid and despite the perceptions of some, there are no rigid rules on things like margins, markups etc.
You CAN wrap a house for BELOW market value and BELOW bank interest rates. If a house is valued at $200k, it CAN be sold for $150k. Bank rates might be, say, 6% and you can finance your buyer at 2%.
So it’s not compulsary to sell at inflated prices or interest rates.
It’s much like charging rent on your IP.
If I bought a house 20 years ago, had no mtg on it, then I could charge $20 p/w rent when other similar houses are getting $200.
As for the wrappers;
Well, EVERY industry has it’s good & bad operators. If you just look at just one group, then you develop a fairly biased view and tend to not want to see the others.
Are there good wrap operators out there… yes in deed. Are there bad ones, oooh yeah.
Are there good buys to be found under a wrap, of course. Are there some real stinkers…. you bet.
So in answer to the question, I feel you should not use a broad brush, rather look at the individual deals and operators.
PS And it’s not all one way either… there are some real rotten buyers out there too. I’m lucky, all of mine are fantastic people.
This IS the land of opportunity. Believe me, for those who want to do it, there’s plenty on offer.
Now that doesn’t mean it’s easy for all or that everyone has the same opportunity.
Take any group of people, indigenous Australians, single white males, left handers, tall people etc and I’m sure you can come up with evidence how that group is discriminated or disadvantaged.
Yet within those very same groups, you’ll find people who rise above the issues simply by using them to their advantage or just ignoring them altogether.
It’s what goes on inside your head that’s important, not the labels others put on you or worse still, those you put on yourself!
Research Oprah Winfrey’s life story and you’ll see a good example of what I’m talking about.
We ALL have strengths and weakenesses. So use your strengths to your best advantage and in the meantime, work on your weakenesses.
And finally, the Queen! [}]
I agree with you… it is rather ridiculous celebrating her birthday and we can’t even get the day correct! [:0)]
Look, I’m no second class “pomm” and have never, ever considered myself to be one of the Queen’s subjects.
But like it or not, dear Lizzy IS the Queen of Australia and that is so out of touch with modern day Australia it’s absurd, yet a small percentage of royalists Aussies (wanna be pommies), lead by our PM still want it kept that way.
Some of what he has to say is very good and some of it is, in my opinion, sheer junk that simply appeals to the “easy thinkers” like many of our “current affairs” shows do.
It’s good that he pushes for better quality / standards within the RE industry. There are still plenty of agents who really do their vendors a disservice and he wants to see them out.
His issue with wrapping seems to come from a transaction a friend of his entered into around 25 years ago that went bad – hence his logic is all VF deals are done exactly the same.
I have attempted to contact him to get his response on the issue that he is an advocate to ban wrapping yet he benefits ( directly or indeirectly) through his business arrangements where agents knowingly sell properties to wrappers. I suggested that if he was truely committed to banning wrapping, then he should instruct his team to never knowingly sell a property to a wrapper. (much the same as advocating for a cigarette ban but then teach people how to sell them to smokers!)
To date, I’ve received no relpy. Oh well. [}]
I also see clear and obvious contradictions in his books on his fav’ topic of auctions. Read why he hates auctions and then read his rules on buying at auctions. The two don’t match up!
An as you point out, it’s strange he thinks it’s unethical to sell at below market price, but ethical to sell at well above it.
I guess it’s the fact the Agent must act for the vendor, so it must be ok. I wonder what happens when his vendor becomes a buyer? Might not be friends any more! []
Still, he’s entertaining and I’ve got some of my very best buys through his “approved” offices. And his trained guys aren’t quite as annoying to deal with as some.
Welcome to the best country I’ve ever lived in and by far the best country in the world.
What you are expressing are the same thoughts and feeling as generations of new comers to this country have.
I’m sure if you asked the members of this forum for some “migrant success stories”, ones that start like this… “my mother and father came to this country with $10 in their pocket, no English and no skills….” I’m sure you be swamped with success stories… so many, they’d have to set up a seperate forum to take all the subbmissions!
Australia IS STILL “the lucky country” and opportunity is still there for anyone and everyone.
But there is one condition. You have to work for it.
By focussing on your (percieved) weakeness’ you are mentally setting yourself up to justify why you can’t achieve the things you want to do. If you “fail” you’ll now have a good reason!
Alternatively you can focus on your strengths and build on your weaknesses.
I have a great true story that I will try to post for you (and other readers).. it’s about overcoming weaknesses.
Ken, don’t find EXCUSES not to achieve what you want, but REASONS to achieve it and then take action!
Successful people DO the things that other people don’t.
My guess is that you really dont want to know where everyone else got started in as much as you want to know where YOU should get started.
Most people dream of a better lifestyle but do nothing, so you have actually started by beginning your search. Congratulate yourself on taking some action.
You can read countless books, you can attend any number of seminars, talk to whoever, but you wont get anywhere until you become very emotionally involved in the outcome.
What do I mean?
You gotta know what you want and want it with a passion. The more passion, the more driven you will become.
If it’s just a preference, chances are you wont do much.
But when the “wanna be” becomes a “must be“, boy oh boy you will things change.
Let me explain;
My turning point, came 2 years ago when I drove a 24 seater bus for a group of people to a winery for a day.
They drank top class champers ($80 – $100 a bottle) from loooovely glasses ( not plastic picnic cups!) on the way there and back, dined on the finest food the Yarra Valley has to offer and had a fantastic day out. (then tipped me an extra $200- because they enjoyed the drive!)
I chatted with a few of them and I discovered they were all multimillionieres yet they weren’t stuck up pricks. (one is the President of an AFL club). They were really nice people.
I thought, man, if i wanted to have a picnic with my family and friends, this is how I’d love to do it. But I couldn’t afford it so it would never happen! Grrrrrr painnnnnn.
And I realised there and then that I was a “wanna be”. Always had been, always would be unless I took loads of action. These men and women were all self made – they took an idea and took action. They were doing the things I wanted to do as a result of their action – I needed to action now!
I was now highly emotionally involved in the outcome. I knew change was needed and it was time to IMPLEMENT all that theory and get serious ( without loosing the fun aspect).
Well 2 years has passed and yes indeed, things have changed.
What I now have is the ability to make certain choices.
Example; I sometimes buy fish n chips, sit on the beach with my family and eat it from the box, wraaping the fish in the paper… yum yum! Other times, we dine out at nice restaurant and order from the left side of the menu, not the right!
Take action, find something that works for you and work it hard!
But above all, never ever forget:
1) Money can buy you anything except for the things money can’t buy.
2)The things that have the most value, are the things you can not value.
3)Understand the value of your time and your health because once gone, no amount of money can ever get them back.
4)always wave at kids on the school bus[]
5)Take your dog to obedience school, you’ll both learn something.[]
Some good tips in there and here’s something more to think on.
Asking price and market price are two completely different things. Add to this, vendor’s lowest sell price and you have quite a mixuture in there.
The trick is not to boast about how much you negotiated the vendor down (almost anybody can get a few % off!), but how much below reasonable market value you acquired the property for.
Being able to consistently acquire property at below market price is what seperates the pro’s from the amatuers.
So what’s market price? I tend to think it’s what Joe Average would probably buy the house for.
Here’s an exercise you can do to see if you are truely a pro or an amatuer.
Invest $1-50 in a simple kids school book with blank, ruled pages. Then go out and look at a few houses like the sort you want to buy. rule 4 columns in the book.
In column a) Write the date and details of the house
In column b)The advertised/asking price
Column c)Your guess as to what it will sell for.
Column d)Leave this blank for the time being.
Over the next few weeks, track the houses and find out what they actually sold for, recording this in column d)
Now have a look back and see just how close you were with your inital estimates.
If you do even 10 -20, you WILL get some spikes in there where the buyer has paid well over market price or a bargain might have been picked up. Don’t worry about these too much.
Anyway, in no time you will become really good at knowing what “market prices” for properties are.
Do this exercise 10-30 times or until you are consistently very close in your estimates and you WILL be able to consistently pickup properties BELOW reasonable market price.
The other great thing about this is when an Agent rings you says “Maaaaayt, have I got a hot one for you today!” you’ll simply ask for some basic details and immediately know if it’s worth getting out of bed to see it. This saves you heaps of time.
As Han Jakobi said, “I’m an investor, not a tourist” meaning he doesn’t waste time driving around to see every “bargain” offered, rather he knows what’s worth the trip and what isn’t.
My “rule of thumb” is that I want to buy at a price whereby once I settle on the property, i could (theoretically) put it straight back on the market and recover ALL my costs – stampduty legals, loan app fee etc etc.
That means I MUST buy below the market price -allowing for future capital growth/loss while waiting for settlement.
You might say in a rising market, that isn’t too hard. But in a flat market, it’s no harder because there’s usually less demand, so you have more leverage to negotiate with.