Tuesday, December 29, 2009

Start out 2010 with a Plan

In the last issue of the OKCMAR quarterly newsmagazine there was a feature regarding the seven essentials to REALTOR business success. If you are not regularly receiving the newsmagazine please contact Leslie Miller at lmiller@okcmar.org. One of the key steps is devoting at least 10% of your time to education relevant to increasing your expertise and your book of business.

I strongly urge all of you to start your 2010 with a tweaked business plan relevant to the economy and the changes in the market. One practice at OKCMAR, which has always surprised me, is the emphasis put on CE. CE is important and a necessary component of licensure. However, CE is designed to help you maintain your body of knowledge not necessarily expand it. When the OKCMAR professional development department (through its school and professional standards) looks to education, we are looking beyond the necessity of retaining one's license to the development of your business and business practices. CE can fulfill a small portion of this business building block if one utilizes tech courses as electives and takes Hot Topics throughout the year. However, to excel in this business (like any other) one must invest in their business.

NAR and many well-known coaches emphasize that a REALTOR should devote 10% of one's time in professional development and specifically recommend designations. While designations are humorously referred to as Alphabet Soup they have been statistically proven to increase annual income by as much as 50% over REALTORS without designations. The average designation course costs $295. NAR reports the average annual REALTOR income is $34,000 per year that means investing less than 1% of your business revenues in order to increase revenues.

The REALTOR industry is quite unique in that the seller carries the inventory not the REALTOR. In most small businesses carrying and maintaining inventory is a huge annual and ongoing business expense. When these business people look to increase their business and revenues it is typically through investing in additional inventory. I would suggest that your education, your knowledge and your expertise is in fact your inventory and those looking to secure their market share should consider investing in their inventory.

This year OKCMAR has committed, through its strategic plan to offer 3 designations locally. Designations are costly to put on but the board believes in investing in its membership. The first designation course will be the SRS, or Sellers Representative Specialist. For more information on this course visit the sellers representative council. This course will be held March 1st and 2nd and taught by the enormously popular, Adorna Carroll. To learn more about Adorna and her no-nonsense yet very entertaining approach visit Dynamic Directions.

OKCMAR also looks to offer both the GREEN designation and the ABR (Accredited Buyers Representative) this year. In addition to committing to your education don't forget the primary block of your real estate success: Your REALTOR membership and MLS subscription. Your leadership has worked diligently to reduce these costs for you and also to limit billing periods in order to relieve you of a "Constant Burden". In 2010 your REALTOR dues are due January 20th MLS fees will be due March 31st and September 30th. There only three times per year when you will be asked to pay for the services and products that support your business. Start 2010 right by ensuring you have adequate funds to keep your services uninterrupted.

If you utilize MLS discounts your total MLS fees for the year $486, Supra Key Fees $270 and your state, local and national dues $379. Your total investment in your business and all the tools and services of the MLS and the state, local and national associations is $1135 per year. Consider setting aside $100 per month in a special fund or account to assure you can meet this obligation.

Imagine $100 per month covers your basic requirements for retaining your license through free CE, markets your properties to over 4000 MLS subscribers and powers websites all over the world, brings you news and information, legislative advocacy, the state offers free legal assistance and affordable health care coverage, MLSOK offers a showing service, virtual tour creation, and online free forms and document manager. Imagine you were in any other kind of self-employed business- how far could you get with a $100 monthly investment? How much inventory could you buy? How much advertising could you purchase? How much legal counsel? What about technology- how much could you implement in your business? By banding together in an association each member receives approximately 8x the value of their investment in dues and fees. Start out 2010 right- invest in yourself and your business!

And please remember your OKCMAR staff is here to help. We want to know what assistance or education you believe would be valuable and offer it to you. As your CEO I always have an open door if you just want to discuss how you can best leverage your membership in the MLSOK and the associations in your business model. Have a very HAPPY & PROSPEROUS 2010!

Saturday, December 26, 2009

Winter Wonderland

I feel right at home in this glorious winter wonderland that Oklahoma blessed us with just in time for Christmas. Actual fatalities were quite low according to the news and that is truly a blessing. The roads right now are typical of Wisconsin roads throughout the winter season (Nov- March/April). Most Mays are temperate but we wait anxiously for the remaining snowbanks to melt down. Take time to enjoy the beauty of the snowscapes- they really are quite spectacular against the bright blue OK sky.

I was very proud of our members who were out in the storm rescuing people stuck in their cars. My husband spent a few hours pushing cars out of heavy snow on Christmas Eve in the 50th and May area. I saw that one of our own OKCMAR Directors, Ryan Hukill was involved in the rescuing efforts (updates were being posted on the okcrealtors facebook site)- what a wonderful example you set for all of us Ryan!

I checked the weather in my home town this morning I found that the deepest snow accumulation that has remained so far is 20 inches- less than two feet which is very minimal for December, the temperature is 11 degrees and there is no windchill today. Windchill is the effect of the wind off the Great Lakes cooling the air temperature, which means that although the temperature is 11 it can feel like -10 below to the exposed skin. Living in these frigid conditions on a regular basis makes us very prepared for a blizzard.

Many postings on our Facebook were comments that local town governments and citizen drivers seemed very unprepared for the storm. While we all won't be rushing out buying 4 wheel drives for one or two days of snow there are some very inexpensive Wisconsin solutions that drivers should consider having in their trunk during the month of December.

1) Keep a bag of generic kitty litter or sand in your trunk. This serves two purposes- weight in your trunk will decrease your chance of fishtailing on ice and spreading out the sand or litter in front of your spinning tires will help your tires get traction on ice or packed snow so you can get on your way rather than abandoning your vehicle.

2) Keep an extra pair of gloves in your trunk. I saw so many people trying to push cars with bare exposed and wet hands. When your hands are cold you are a cold.

3) Keep a gallon of drinking water & some nuts/granola bars in your trunk. When you are stranded this little bit of life support can be invaluable.

4) Keep a flashlight and a blanket in your trunk.

These are extremely inexpensive items and could make a significant difference in your winter driving experience.

Finally, Merry Christmas to OKCMAR! Hope this posting finds you all enjoying the holiday season in comfort and joy!

Friday, December 18, 2009

Our Greatest Asset?

If you were to ask our incoming President, Dave Moeller, what is OKCMAR's greatest asset, he would most likely reply "the membership". I would say its our "human capital" which includes staff too. However, OKCMAR also has a tremendous asset in its holdings: our building and our reserves.

Due to the foresight of previous leaders, OKCMAR has invested in its physical assets. In addition to a wonderful building, OKCMAR also has invested wisely in its various reserve funds. One of the comments I often answer is why are we cutting back on spending (we have greatly reduced variable operating expenses), or not decreasing dues/fees if there is funding available to maintain and/or upgrade the building. OKCMAR has kept its dues at a minimum for decades. Members are still paying the same $125 in OKCMAR dues while receiving more services, even though the cost of fixed operating expenses have risen steadily. OKCMAR has kept its dues very low and stable for decades,while the state and national associations have had significant increases and additional assessments over the last 10 years.

MLS in 2007 increased its MLS fees by $20 monthly and kept its lockbox Supra Key fee the same. This increase went directly towards implementing technology, systems and tech personnel to bring MLS to not only a functioning level but to put its users at the forefront of technology-positioning our members in the center of the real estate transaction. Also the tools net each brokerage a significant savings through replacing tools that many were paying for directly which are now included in the basic MLS package.

Last year MLSOK reduced its MLS fees 10% for those members using MLS and the MLSOK lockbox service. MLS then reduced its Supra Key Fees by 10%. MLSOK continued to reduce its fees by another 10% through its early payment plan. While other associations are raising their dues or cutting services, your association and MLS are increasing services while reducing fees and keeping dues the same.

However, back to the burning question, why is OKCMAR choosing to upgrade and maintain its building when potentially fees or dues could be decreased. Well, that itsn't exactly the case! As a corporate association we have a Financial Legal Responsibility to PROTECT the assets of the corporation and a fiscal responsibility to ensure the continuance of the corporation in down times. Our corporation bylaws, as well as board policies, put controls over how the reserves may be used.

OKCMAR & MLS has several reserve funds designated for certain uses. First both corporations have an operating reserve. This reserve is 6 months operating expenses for OKCMAR and 12 months operating expenses for MLS. This makes sure that in the event of a major catastrophe or cataclysmic shift in the economy both the association and its MLS can continue to operate long enough to wrap up business and pay off contractual obligations should the corporations be required to dissolve.

The association and MLSOK both have a small research and development restricted reserve fund. These funds may only be used for research and development of programs, services and technologies and the request for use of the funds must be submitted by a committee and be approved by both the Executive Committee and the full Board of Directors.

Finally OKCMAR has a building reserve and MLSOK a leasehold improvement reserve. These funds may only be spent on maintaining/updating/upgrading the building. Being in the real estate industry, this probably doesn't need to be stated but I will do so for those non-industry readers, in order for a building to hold its value it must not only be maintained but periodically updated.

The building maintenance activity you may have recently witnessed is not being accomplished or paid for with current dues and fees. OKCMAR and MLSOK are both operating at "to the bone " expense and income levels. The maintenance and updates are being paid for out of the building reserve funds- exactly what these funds were set aside for so many years ago and which a very small portion of current fees are applied to. In the last few years, OKCMAR has operated at a deficit tapping into the operating reserve. $0 of your current dues dollars are being allocated to the building fund. In MLS $7.50 of your annual fees (less than 1%) is allocated to the leasehold improvement fund.

The MLSOK operates the R-Store due to IRS constraints on Unrelated Business Income Activity. MLSOK is expanding its R-Store, using a small portion of the reserve, for two reasons: The R-Store has been generating a profit which has been used to help pay for the early payment discounts and to give even more of the building back to its members- making the R-Store a networking spot for its members. By focusing on an area where we are collecting NON-DUES revenue and revenue from Non-Members and other associations we can continue to generate profits which hold MLS fees down. The expansion will allow OKCMAR & MLSOK to open up its building complete with a cyber-cafe to members. Members will soon be able to meet clients at the store for coffee on a Saturday, sit down and access wireless from their laptop, print out a contract (or buy one off the shelf) have it signed, pick up a few open house signs and be off to the next deal.

We have worked very hard on giving members as much access as possible to their greatest asset: YOUR BUILDING. Members can use the computer labs on the third floor or rent the large classrooms for events. On the first floor we have an entire office off the lobby which is specifically for member use; As a meeting room/office space if a member wishes to meet a client/customer in the middle of our sales market territory, and this office also holds two computer and printer stations for members to use. Soon we will have a weekend facility for members to work and enjoy a snack or to meet clients, check email etc.

Please be watching in February for our Annual Report which will give great detail into how your dues and fees are spent by program cost center.

Saturday, December 12, 2009

Working on the Puzzle

I would like to thank all who attended the Inaugural Luncheon on December 9th at the Oklahoma City Country Club. I hope you all had a good time and enjoyed the program.

During my speech, I spoke about the Association’s Strategic Plan for 2010. It involves many parts of a vision that will require the help of fellow Association Members, who all contribute to the success of the Organization. I spoke about how our Association has changed over the last few years and how we are now evolving into what we all expect and desire to assist us all in our business efforts.

It is not necessary for us to evolve; but it is mandatory for our success and survival.

Positive results normally are the result of hard work. That is why I ask each of you to help in any way you can by assisting on a committee, or future task force. We all have to be part of the solutions that assist our evolution to insure our future success.

A Quote from Robert F. Kennedy:
Few will have the greatness to bend history itself; but each of us can work to change a small portion of events, and in the total; of all those acts will be written the history of this generation.

Thursday, December 3, 2009

A Comment to the Pulled Post-Titled: July 15, 1982

Why I am for MAPS,

There are some dates that are etched in our memory. We know exactly where we were, who we were with, and what the day was like such as Nov. 22nd, 1963, July 20th, 1969, January 28th, 1986, September 11th, 2001, and July 5th, 1982.

One such date I was on a Southwest Airline flight to Dallas. I sat next to a lady and started a conversation with her. She said she was on her way back to Dallas and was a bank examiner with the FDIC. She mentioned casually "we closed down Penn Square Bank this morning". I had no idea what the consequences of that statement would be. I would find out.

From 1971 to 1990 I partnered with my dad and owned [two corporations]. 1973, '74, '75, and '76 were challenging years. In 1977 things changed with the beginning of the Oil Boom. It was amazing; it seemed so easy to make money. It was like a golfer going out one day and shooting an eagle on every hole. During that period from 1977 to 1983 Oklahoma had a booming economy; it seemed everyone was doing well. Jackie Cooper was the number one Rolls Royce Dealer in the world. Companies were flying in Hollywood Entertainers for their Christmas Parties. Two years in a row, I took my entire company to Breckenridge Colorado snow skiing.

1982 was one of my best years financially; however, by January of 1983 I realized the impact of what the lady said that July day. As a result of decisions I made during the boom, I could not downsize. I built, with two partners, an office warehouse on S.E. 18th and Eastern in 1981 which we promptly rented to oil field service companies. By the end of 1983 they were gone, but not the mortgage payment. Due to the location and the economic conditions we were not able to rent or lease the vacant spaces. One either pays or goes broke paying.

During the boom I made a sizeable sum of money and I felt that I could weather two years of a downturn, but not 10. We hit bottom economically in 1986. In January of 1986 oil was below $10 per barrel. Oklahoma was losing population at the rate of a city the size of Shawnee per year and as a result we lost a congressional seat.

After trying everyway I could think of to stay in business, I finally called it quits on June 15th, 1990. On September 13th, 1990 Dakil auctioned off everything and the proceeds went to pay creditors. I was 46 years old and broke. Twenty years of hard work gone.

The only people interested in talking to me were life insurance companies. And why not? No sales, no payroll. I could have relocated, but after reading Grapes of Wrath, decided to stay in Oklahoma City. In retrospect, it has turned out to be a very good business.

I was, in the beginning, like a pampered house cat that lost favor with my keeper and was thrown out of the house. I had to learn to hunt or starve. It was not easy; it meant calling people on the phone. Cold Calling. :-( There were no options, I would call and make 15 to 20 appointment per week with business owners to buy life insurance. Almost immediately they would talk about how difficult business was and had been for years. This feeling seemed to be pervasive, we were down on ourselves, on Oklahoma, and Oklahoma City. We were a backwater state and city devoid of opportunity and short on hope.

In 1991, Oklahoma City, in order to lure a United Airlines Maintance facility here, voted to spend $125 million on an incentive package as an enticement to locate the maintenance facility here and the 1,000 jobs it would bring. United chose Indianapolis instead. Mayor Norick had developed a close relationship with the United people so he asked "why did you not choose Oklahoma City"? They were blunt and straight forward in their answer. They said "Mayor you have no quality of life in Oklahoma City our people would not be happy there".

Afterward at a Chamber of Commerce Annual Retreat, the concept of MAPS begin to take shape realizing that Oklahoma City citizens had been willing to spend $125 million on United. The Chamber and Mayor Norick decided to go to the people with the idea of spending the money on ourselves. As a result, we voted on MAPS December 13th, 1993. There were detractors then as now; it passed by slightly more than 53%. The naysaying continued until the Ball Park was completed. When the canal was completed in 1998, it was difficult to find anyone who would confess to voting against MAPS. We the people along with the Chamber and our City Officials had created a miracle. We had pulled ourselves up by our boot straps. We did it without a bailout from the Federal Government or State Government. Our City is now a more dynamic place to live and work. Our whole attitude about our City and ourselves has changed. Our young people now see opportunity in staying here and not going to Dallas or some other "hip city". Without MAPS there would be no Dell, no Quad Graphics, no Thunder, no Devon, no 750 million dollar 50 story office tower Larry Nichols and Devon are building in the heart of Oklahoma City. A No vote can be devastating!

Times are indeed tough, they were in 1993 too. Good times like bad times don't last. To take advantage when the good times return we must prepare in the bad times. I am 66 years old. Most of us here in Brookwood are seniors or close. I may or may not be here to see how this MAPS works out, but it’s not about me, it is about our children and grand children. It’s about the kids you see on the playgrounds, in our schools, the infants in stollers, and those not yet born. They will not vote on December 8th. We will; we will determine their future.

We know what the original MAPS produced. We have every reason to expect the same success as before.

Weigh carefully your decision, citizen. Much is at stake here.

A concerned citizen grateful the OKCMAR is supporting MAPS.

Wednesday, December 2, 2009

Pulling my Post

CEO Viewpoint:

Yesterday after several tries I finally posted a comment regarding a newsbroadcast that implied OKCMAR does not ask members their opinion about issues. I have also been asking members to link to this blog from their website. After careful consideration I pulled my post. OKCMAR asks members to serve on the committees making decisions about board strategies and advocacy. OKCMAR also surveys its members often. Members elect directors to speak for them and their answers are to be representative of the membership's choices. Members should be proud of the OKCMAR process. There are very few areas in life where we have direct control over our future; becoming involved in the association gives each member the ability to have direct input into the actions of the association. As a member of the leadership team, I am very proud of our members, our association, and our decision-making process.