Immobilienverkauf

Let’s get right down to it, shall we:

Best REALTOR Slogans

#5. „My job is your future“– Good. So you understand how big of a deal a home purchase is for me.

#4. „Purveyor of fine homes to fine people“ – Not bad; a little boring, but you have a good command of the language and demonstrate strong commitment to a targeted market.

#3. „Sold in 100 days, or I’ll buy it“– Does this belong in the top 5? Yes – because you stand out, commit, and I know I’ll have a guaranteed sale within 4 months.

#2. „I Never Forget You Have a Choice“– That’s what I like to hear – you’ll always have the right motivations while we’re working together.

#1. „Anyone can sell your home. I can sell it for more.“ – Strong, assertive and straight to the point. Let me put you to the test.

Worst REALTOR Slogans

#5. „A Realtor You Can Trust“– Sounds like something your parole officer told you to say.

#4. „No Fancy Punchlines – Just Great Service“– Does this constitute an oxymoron? (Definitely a moron)

#3. „It’s the Energy!“– What does that even mean? I think your doctor over-prescribes stimulants… Out of curiosity, what’s his name (my friend wants to know…)?

#2. „Everything I Touch Turns to Sold!“ – Ha ha! It’s funny, I’ll give you that. But now that the joke’s over can you introduce me to a real REALTOR?

#1. „Spouses Selling Houses“ – Do you include domestic disputes with showings?

Conclusion

This was a tough article to write because there are at least 20 terrible catch phrases for every good one. Some rules of thumb:

• Use common sense – No one wants to hear you state the obvious – and no one is interested in self-indulgence. There’s also not much room for humor (there are exceptions of course), so keep it professional.
• If you say something bold in your slogan, make sure you’re willing to eat, sleep, and breathe by it.
• If you can’t come up with anything good, don’t worry: Clients won’t notice that you don’t have a catch phrase, but you might lose clients if you have a bad one.

Immobilienmakler Heidelberg

Makler Heidelberg

Restaurants are a favorite commercial property for many investors because:

1. Tenants often sign a very long term, e.g. 20 years absolute triple net (NNN) leases. This means, besides the rent, tenants also pay for property taxes, insurance and all maintenance expenses. The only thing the investor has to pay is the mortgage, which in turn offers very predictable cash flow. There are either no or few landlord responsibilities because the tenant is responsible for maintenance. This allows the investor more time to do important thing in life, e.g. retire. All you do is take the rent check to the bank. This is one of the key benefits in investing in a restaurant or single-tenant property.
2. Whether rich or poor, people need to eat. Americans are eating out more often as they are too busy to cook and cleanup the pots & pans afterwards which often is the worst part! According to the National Restaurant Association, the nation’s restaurant industry currently involves 937,000 restaurants and is expected to reach $537 billion in sales in 2007, compared to just $322 billion in 1997 and $200 billion in 1987 (in current dollars). In 2006, for every dollar Americans spend on foods, 48 cents were spent in restaurants. As long as there is civilization on earth, there will be restaurants and the investor will feel comfortable that the property is always in high demand.
3. You know your tenants will take very good care of your property because it’s in their best interest to do so. Few customers, if any, want to go to a restaurant that has a filthy bathroom and/or trash in the parking lot.

However, restaurants are not created equal, from an investment viewpoint.

Franchised versus Independent

One often hears that 9 out of 10 new restaurants will fail in the first year; however, this is just an urban myth as there are no conclusive studies on this. There is only a study by Associate Professor of Hospitality, Dr. H.G. Parsa of Ohio State University who tracked new restaurants located in the city Columbus, Ohio during the period from 1996 to 1999 (Note: you should not draw the conclusion that the results are the same everywhere else in the US or during any other time periods.) Dr. Parsa observed that seafood restaurants were the safest ventures and that Mexican restaurants experience the highest rate of failure in Columbus, OH. His study also found 26% of new restaurants closed in the first year in Columbus, OH during 1996 to 1999. Besides economic failure, the reasons for restaurants closing include divorce, poor health, and unwillingness to commit immense time toward operation of the business. Based on this study, it may be safe to predict that the longer the restaurant has been in business, the more likely it will be operating the following year so that the landlord will continue to receive the rent.

For franchised restaurants, a franchisee has to have a certain minimal amount of non-borrowed cash/capital, e.g. $300,000 for McDonald’s, to qualify. The franchisee has to pay a one-time franchisee fee about $30,000 to $50,000. In addition, the franchisee has contribute royalty and advertising fees equal to about 4% and 3% of sales revenue, respectively. In turn, the franchisee receives training on how to set up and operate a proven and successful business without worrying about the marketing part. As a result, a franchised restaurant gets customers as soon as the open sign is put up. Should the franchisee fail to run the business at the location, the franchise may replace the current franchisee with a new one. The king of franchised hamburger restaurants is the fast-food chain McDonald’s with over 32000 locations in 118 countries (about 14,000 in the US) as of 2010. It has $34.2B in sales in 2011 with an average of $2.4M in revenue per US location. McDonald’s currently captures over 50% market share of the $64 billion US hamburger restaurant market. Its sales are up 26% in the last 5 years. Distant behind is Wendy’s (average sales of $1.5M) with $8.5B in sales and 5904 stores. Burger King ranks third (average sales of $1.2M) with $8.4B in sale, 7264 stores and 13% of the hamburger restaurant market share (among all restaurant chains, Subway is ranked number two with $11.4B in sales, 23,850 stores, and Starbucks number 3 with $9.8B in sales and 11,158 stores). McDonald’s success apparently is not the result of how delicious its Big Mac tastes but something else more complex. Per a survey of 28,000 online subscribers of Consumer Report magazine, McDonald’s hamburgers rank last among 18 national and regional fast food chains. It received a score of 5.6 on a scale of 1 to 10 with 10 being the best, behind Jack In the Box (6.3), Burger King (6.3), Wendy’s (6.6), Sonic Drive In (6.6), Carl’s Jr (6.9), Back Yard Burgers (7.6), Five Guys Burgers (7.9), and In-N-Out Burgers (7.9).

Fast-food chains tend to detect new trends faster. For example, they are open as early as 5AM as Americans are increasingly buying their breakfasts earlier. They are also selling more cafe; latte; fruit smoothies to compete with Starbucks and Jumba Juice. You also see more salads on the menu. This gives customers more reasons to stop by at fast-food restaurants and make them more appealing to different customers.

With independent restaurants, it often takes a while to for customers to come around and try the food. These establishments are especially tough in the first 12 months of opening, especially with owners of minimal or no proven track record. So in general, „mom and pop“ restaurants are risky investment due to initial weak revenue. If you choose to invest in a non-brand name restaurant, make sure the return is proportional to the risks that you will be taking.

Sometimes it is not easy for you to tell if a restaurant is a brand name or non-brand name. Some restaurant chains only operate, or are popular in a certain region. For example, WhatABurger restaurant chain with over 700 locations in 10 states is a very popular fast-food restaurant chain in Texas and Georgia. However, it is still unknown on the West Coast as of 2012. Brand name chains tend to have a website listing all the locations plus other information. So if you can find a restaurant website from Google or Yahoo you can quickly discern if an unfamiliar name is a brand name or not. You can also obtain basic consumer information about almost any chain restaurants in the US on Wikipedia.

The Ten Fastest-Growing Chains in 2011 with Sales Over $200 Million

According to Technomic, the following is the 10 fastest growing restaurant chains in terms of revenue change from 2010 to 2011:

1. Five Guys Burgers and Fries with $921M in sales and 32.8% change.
2. Chipotle Mexican Grill with $2.261B in sales and 23.4% change.
3. Jimmy John’s Gourmet Sandwich Shop with $895M in sales and 21.8% change.
4. Yard House with $262M in sales and 21.5% change.
5. Firehouse Subs with $285M in sales and 21.1% change.
6. BJ’s Restaurant & Brewhouse with $621M in sales and 20.9% change.
7. Buffalo Wild Wings Grill & Bar with $2.045B in sales and 20.1% change.
8. Raising Cane’s Chicken Fingers with $206M in sales and 18.2% change.
9. Noodles & Company with $300M in sales and 14.9% change from.
10. Wingstop with $382M in sales and 22.1% change.

Lease & Rent Guaranty

The tenants often sign a long term absolute triple net (NNN) lease. This means, besides the base rent, they also pay for all operating expenses: property taxes, insurance and maintenance expenses. For investors, the risk of maintenance expenses uncertainty is eliminated and their cash flow is predictable. The tenants may also guarantee the rent with their own or corporate assets. Therefore, in case they have to close down the business, they will continue paying rent for the life of the lease. Below are a few things that you need to know about the lease guaranty:

1. In general, the stronger the guaranty the lower the return of your investment. The guaranty by McDonald’s Corporation with a strong „A“ S&P corporate rating of a public company is much better than a small corporation owned by a franchisee with a few restaurants. Consequently, a restaurant with a McDonald’s corporate lease normally offers low 4.5-5% cap (return of investment in the 1^st year of ownership) while McDonald’s with a franchisee guaranty (over 75% of McDonalds restaurants are owned by franchisees) may offer 5-6% cap. So figure out the amount of risks you are willing to take as you won’t get both low risks and high returns in an investment.
2. Sometimes a multi-location franchise will form a parent company to own all the restaurants. Each restaurant in turn is owned by a single-entity Limited Liabilities Company (LLC) to shield the parent company from liabilities. So the rent guaranty by the single-entity LLC does not mean much since it does not have much assets.
3. A good, long guaranty does not make a lemon a good car. Similarly, a strong guaranty does not make a lousy restaurant a good investment. It only means the tenant will make every effort to pay you the rent. So don’t judge a property primarily on the guaranty.
4. The guaranty is good until the corporation that guarantees it declares bankruptcy. At that time, the corporation reorganizes its operations by closing locations with low revenue and keeping the good locations, (i.e. ones with strong sales). So it’s more critical for you to choose a property at a good location. If it happens to have a weak guaranty, (e.g. from a small, private company), you will get double benefits: on time rent payment and high return.
5. If you happen to invest in a „mom & pop“ restaurant, make sure all the principals, e.g. both mom and pop, guarantee the lease with their assets. The guaranty should be reviewed by an attorney to make sure you are well protected.

Location, Location, Location

A lousy restaurant may do well at a good location while those with a good menu may fail at a bad location. A good location will generate strong revenue for the operator and is primarily important to you as an investor. It should have these characteristics:

1. High traffic volume: this will draw more customers to the restaurant and as a result high revenue. So a restaurant at the entrance to a regional mall or Disney World, a major shopping mall, or colleges is always desirable.
2. Good visibility & signage: high traffic volume must be accompanied by good visibility from the street. This will minimize advertising expenses and is a constant reminder for diners to come in.
3. Ease of ingress and egress: a restaurant located on a one-way service road running parallel to a freeway will get a lot of traffic and has great visibility but is not at a great location. It’s hard for potential customers to get back if they miss the entrance. In addition, it’s not possible to make a left turn. On the other hand, the restaurant just off freeway exit is more convenient for customers.
4. Excellent demographics: a restaurant should do well in an area with a large, growing population and high incomes as it has more people with money to spend. Its business should generate more and more income to pay for increasing higher rents.
5. Lots of parking spaces: most chained restaurants have their own parking lot to accommodate customers at peak hours. If customer cannot find a parking space within a few minutes, there is a good chance they will skip it and/or won’t come back as often. A typical fast food restaurant will need about 10 to 20 parking spaces per 1000 square feet of space. Fast food restaurants, e.g. McDonald’s will need more parking spaces than sit down restaurants, e.g. Olive Garden.
6. High sales revenue: the annual gross revenue alone does not tell you much since larger–in term of square footage–restaurant tends to have higher revenue. So the rent to revenue ratio is a better gauge of success. Please refer to rent to revenue ratio in the due diligence section for further discussion.
7. High barriers to entry: this simply means that it’s not easy to replicate this location nearby for various reasons: the area simply does not have any more developable land, or the master plan does not allow any more construction of commercial properties, or it’s more expensive to build a similar property due to high cost of land and construction materials. For these reasons, the tenant is likely to renew the lease if the business is profitable.

Financing Considerations

In general, the interest rate is a bit higher than average for restaurants due to the fact that they are single-tenant properties. To the lenders, there is a perceived risk because if the restaurant is closed down, you could potentially lose 100% of your income from that restaurant. Lenders also prefer national brand name restaurants. In addition, some lenders will not loan to out-of-state investors especially if the restaurants are located in smaller cities. So it may be a good idea for you to invest in a franchised restaurant in major metro areas, e.g. Atlanta, Dallas. In 2009 it’s quite a challenge to get financing for sit-down restaurant acquisitions, especially for mom and pop and regional restaurants due to the tight credit market. However, things seem to have improved a bit in 2010. If you want to get the best rate and terms for the loan, you should stick to national franchised restaurants in major metros.

When the cap rate is higher than the interest rate of the loan, e.g. cap rate is 7.5% while interest rate is 6.5%, then you should consider borrowing as much as possible. You will get 7.5% return on your down payment plus 1% return for the money you borrow. Hence your total return (cash on cash) will be higher than the cap rate. Additionally, since the inflation in the near future is expected to be higher due to rising costs of fuel, the money which you borrow to finance your purchase will be worth less. So it’s even more beneficial to maximize leverage now.

Due Diligence Investigation

You may want to consider these factors before deciding to go forward with the purchase:

1. Tenant’s financial information: The restaurant business is labor intensive. The average employee generates only about $55,000 in revenue annually. The cost of goods, e.g. foods and supplies should be around 30-35% of revenue; labor and operating expenses 45-50%; rent about 7-12%. So do review the profits and loss (P&L) statements, if available, with your accountant. In the P&L statement, you may see the acronym EBITDAR. It stands for Earnings Before Income Taxes, Depreciation (of equipment), Amortization (of capital improvement), and Rent. If you don’t see royalty fees in P&L of a franchised restaurant or advertising expenses in the P&L of an independent restaurant, you may want to understand the reason why. Of course, we will want to make sure that the restaurant is profitable after paying the rent. Ideally, you would like to see net profits equal to 10-20% of the gross revenue. In the last few years the economy has taken a beating. As a result, restaurants have experienced a decrease in gross revenue of around 3-4%. This seems to have impacted most, if not all, restaurants everywhere. In addition, it may take a new restaurant several years to reach potential revenue target. So don’t expect new locations to be profitable right away even for chained restaurants.
2. Tenant’s credit history: if the tenant is a private corporation, you may be able to obtain the tenant’s credit history from Dun & Bradstreet (D&B). D&B provides Paydex score, the business equivalent of FICO, i.e. personal credit history score. This score ranges from 1 to 100, with higher scores indicating better payment performance. A Paydex score of 75 is equivalent to FICO score of 700. So if your tenant has a Paydex score of 80, you are likely to receive the rent checks promptly.
3. Rent to revenue ratio: this is the ratio of base rent over the annual gross sales of the store. It is a quick way to determine if the restaurant is profitable, i.e. the lower the ratio, the better the location. As a rule of thumb you will want to keep this ratio less than 10% which indicates that the location has strong revenue. If the ratio is less than 7%, the operator will very likely make a lot of money after paying the rent. The rent guaranty is probably not important in this case. However, the rent to revenue ratio is not a precise way to determine if the tenant is making a profit or not. It does not take into account the property taxes expense as part of the rent. Property taxes–computed as a percentage of assessed value–vary from states to states. For example, in California it’s about 1.25% of the assessed value, 3% in Texas, and as high as 10% in Illinois. And so a restaurant with rent to income ratio of 8% could be profitable in one state and yet be losing money in another.
4. Parking spaces: restaurants tend to need a higher number of parking spaces because most diners tend to stop by within a small time window. You will need at least 8 parking spaces per 1000 Square Feet (SF) of restaurant space. Fast food restaurants may need about 15 to 18 spaces per 1000 SF.
5. Termination Clause: some of the long term leases give the tenant an option to terminate the lease should there be a fire destroying a certain percentage of the property. Of course, this is not desirable to you if that percentage is too low, e.g. 10%. So make sure you read the lease. You also want to make sure the insurance policy also covers rental income loss for 12-24 months in case the property is damaged by fire or natural disasters.
6. Price per SF: you should pay about $200 to $500 per SF. In California you have to pay a premium, e.g. $1000 per SF for Starbucks restaurants which are normally sold at very high price per SF. If you pay more than $500 per SF for the restaurant, make sure you have justification for doing so.
7. Rent per SF: ideally you should invest in a property in which the rent per SF is low, e.g. $2 to $3 per SF per month. This gives you room to raise the rent in the future. Besides, the low rent ensures the tenant’s business is profitable, so he will be around to keep paying the rent. Starbucks tend to pay a premium rent $2 to 4 per SF monthly since they are often located at a premium location with lots of traffic and high visibility. If you plan to invest in a restaurant in which the tenant pays more than $4 per SF monthly, make sure you could justify your decision because it’s hard to make a profit in the restaurant business when the tenant is paying higher rent. Some restaurants may have a percentage clause. This means besides the minimum base rent, the operator also pays you a percentage of his revenue when it reaches a certain threshold.
8. Rent increase: A restaurant landlord will normally receive either a 2% annual rent increase or a 10% increase every 5 years. As an investor you should prefer 2% annual rent increase because 5 years is a long time to wait for a raise. You will also receive more rent with 2% annual increase than 10% increase every 5 years. Besides, as the rent increases every year so does the value of your investment. The value of restaurant is often based on the rent it generates. If the rent is increased while the market cap remains the same, your investment will appreciate in value. So there is no key advantage for investing in a restaurant in a certain area, e.g. California. It’s more important to choose a restaurant at a great location.
9. Lease term: in general investors favor long term, e.g. 20 year lease so they don’t have to worry about finding new tenants. During a period with low inflation, e.g. 1% to 2%, this is fine. However, when the inflation is high, e.g. 4%, this means you will technically get less rent if the rent increase is only 2%. So don’t rule out properties with a few years left of the lease as there may be strong upside potential. When the lease expires without options, the tenant may have to pay much higher market rent.
10. Risks versus Investment Returns: as an investor, you like properties that offer very high return, e.g. 8% to 9% cap rate. And so you may be attracted to a brand new franchised restaurant offered for sale by a developer. In this case, the developer builds the restaurants completely with Furniture, Fixtures and Equipment (FFEs) for the franchisee based on the franchise specifications. The franchisee signs a 20 years absolute NNN lease paying very generous rent per SF, e.g. $4 to $5 per SF monthly. The new franchisee is willing to do so because he does not need to come up with any cash to open a business. Investors are excited about the high return; however, this may be a very risky investment. The one who is guaranteed to make money is the developer. The franchisee may not be willing to hold on during tough times as he does not have any equity in the property. Should the franchisee’s business fails, you may not be able to find a tenant willing to pay such high rent, and you may end up with a vacant restaurant.
11. Track records of the operator: the restaurant being run by an operator with 1 or 2 recently-open restaurants will probably be a riskier investment. On the other hand, an operator with 20 years in the business and 30 locations may be more likely to be around next year to pay you the rent.
12. Trade fixtures: some restaurants are sold with trade fixtures so make sure you document in writing what is included in the sale.
13. Fast-food versus Sit-down: while fast-food restaurants, e.g. McDonalds do well during the downturn, sit-down family restaurants tend to be more sensitive to the recession due to higher prices and high expenses. These restaurants may experience double-digit drop in year-to-year revenue. As a result, many sit-down restaurants were shut down during the recession. If you consider investing in a sit-down restaurant, you should choose one in an area with high income and large population.

Sale & Lease Back

Sometimes the restaurant operator may sell the real estate part and then lease back the property for a long time, e.g. 20 years. A typical investor would wonder if the operator is in financial trouble so that he has to sell the property to pay for his debts. It may or may not be the case; however, this is a quick and easy way for the restaurant operator to get cash out of the equities for good reason: business expansion. Of course, the operator could refinance the property with cash out but that may not be the best option because:

1. He cannot maximize the cash out as lenders often lend only 65% of the property value in a refinance situation.
2. The loan will show as long term debt in the balance sheet which is often not viewed in a positive light.
3. The interest rates may not be as favorable if the restaurant operator does not have a strong balance sheet.
4. He may not be able to find any lenders due to the tight credit market.

You will often see 2 different cash out strategies when you look at the rent paid by the restaurant operator:

1. Conservative market rent: the operator wants to make sure he pays a low rent so his restaurant business has a good chance of being profitable. He also offers conservative cap rate to investors, e.g. 7% cap. As a result, his cash out amount is small to moderate. This may be a low risk investment for an investor because the tenant is more likely to be able to afford the rent.
2. Significantly higher than market rent: the operator wants to maximize his cash out by pricing the property much higher than its market value, e.g. $2M for a $1M property. Investors are sometimes offered high cap rate, e.g. 10%. The operator may pay $5 of rent per square foot in an area where the rent for comparable properties is $3 per square foot. As a result, the restaurant business at this location may suffer a loss due to higher rents. However, the operator gets as much money as possible. This property could be very risky for you. If the tenant’s business does not make it and he declares bankruptcy, you will have to offer lower rent to another tenant to lease your building.

Ground Lease

Occasionally you see a restaurant on ground lease for sale. The term ground lease may be confusing as it could mean

1. You buy the building and lease the land owned by another investor on a long-term, e.g. 50 years, ground lease.
2. You buy the land in which the tenant owns the building. This is the most likely scenario. The tenant builds the restaurant with its own money and then typically signs a 20 years NNN lease to lease the lot. If the tenant does not renew the lease then the building is reverted to the landowner. The cap rate is often 1% lower, e.g. 6 to 7.25 percent, compared to restaurants in which you buy both land and building.

Since the tenant has to invest a substantial amount of money (whether its own or borrowed funds) for the construction of the building, it has to be double sure that this is the right location for its business. In addition, should the tenant fail to make the rent payment or fail to renew the lease, the building with substantial value will revert to you as the landowner. So the tenant will lose a lot more, both business and building, if it does not fulfill its obligation. And thus it thinks twice about not sending in the rent checks. In that sense, this is a bit safer investment than a restaurant which you own both the land and improvements. Besides the lower cap rate, the major drawbacks for ground lease are

1. There are no tax write-offs as the IRS does not allow you to depreciate its land value. So your tax liabilities are higher. The tenants, on the other hand, can depreciate 100% the value of the buildings and equipments to offset the profits from the business.
2. If the property is damaged by fire or natural disasters, e.g. tornados, some leases may allow the tenants to collect insurance proceeds and terminate the lease without rebuilding the properties in the last few years of the lease. Unfortunately, this author is not aware of any insurance companies that would sell fire insurance to you since you don’t own the building. So the risk is substantial as you may end up owning a very expensive vacant lot with no income and a huge property taxes bill.
3. Some of the leases allow the tenants not having to make any structure, e.g. roof, repairs in the last few years of the lease. This may require investors to spend money on deferred maintenance expenses and thus will have negative impact on the cash flow of the property.

Immobilienmakler Heidelberg

Makler Heidelberg

Are you running out of creative juice for your needed daily or weekly blog? Are you having some sort of repetitions just after two months or so? If you are in this situation, you’re probably thinking of how you can possibly sustain readership with writing ideas or topics that are sure to entice readers to follow you. Here are some topics you can write about for the next days.

Local activities which kids and teenagers would probably ask permission from their parents to join. Every community conducts activities for children and teenagers. These activities are geared to enrich the knowledge and skills of the participants. Most of them are conducted during summer months. But there are also some activities conducted during the other months of the year. These activities can range from art workshops, sports clinics, dance competitions, talent shows, and a whole lot more.

Current news in your local community and even important events of the nation. News affects all. Whatever is happening in the community and in the nation has impact to everybody. Discuss how these events can affect the families and individuals in the community. Assert your point. Give insights on how these events can shape the local real estate industry.

Present places of interests to your readers. Make your real estate blog a reference for readers to familiarize themselves with the community’s various interesting places. Let your writings take them to the vest restaurants, entertainment hubs, museums, shopping destinations, and even tourist spots. These local crowd-drawers deserve to have their spotlights on your blog. It will also help if you’ll notify merchants, establishments or entities which you’ll mention in your writing. Through this, you are getting them fueled to share your writings in their respective platforms. This will eventually increase redirects from their spaces to yours.

Dissect local market studies. Different studies present various insights. They send signals to buyers and sellers alike. Present statistics, data, and other information which will be valuable and influential to the decisions of your readers. Will this month be good to buy a house? Will next month see home prices increasing at least for your market?

Give tips, suggestions, and advises. Your blog can also serve as a communication line between you and your readers. Engage them in your posts through tips about home staging. Suggest ways on how they can better rearrange the room of their sons or daughters. Give advise on how to deal with noisy neighbors. There are plenty of topics in which your expert opinion and advise are warranted.

Immobilienmakler Heidelberg

Makler Heidelberg

The „Great Resignation“ has been a buzz word we have all talked about now for the past several months and it doesn’t seem to be going away. Just recently reported by the BLS, the Great Resignation reached an all-time high in September with 4.4 million workers quitting their jobs.

What is the cause of the Great Resignation though? Is it workers wanting more flexibility in their work/life balance that their current employer doesn’t offer? Is it wanting to work at home permanently, but not having the option available anymore? Was it being cooped up at home that made workers realize they want a change in their careers when the job market is better? It’s all of this and more.

The fall 2021 Hiring Report released by Monster though indicates that burnout is the #1 reason employees are quitting their jobs. Since the start of the COVID-19 pandemic, mental health has become a growing concern. Many employees feel like they are „always on“ and work longer hours when at home. There is also a sense of isolation. There is less comradery and social interaction with co-workers, so more workers are feeling lonely and disconnected. All of this, but not limited to, can contribute to feeling burned out. A survey conducted by Indeed in the springtime even showed that more than half of workers reported they were burned out.

What is employee burnout exactly though? Verywell Mind defines burnout as a reaction to prolonged or chronic job stress and is characterized by three main dimensions: exhaustion, cynicism (less identification with the job), and feelings of reduced professional ability.

Signs and symptoms of employee burnout that Verywell Mind reports include:

• Alienation from work-related activities: Individuals view their jobs as stressful and frustrating. They also may become cynical about their work and the people they work with.
• Physical symptoms: This can include headaches, stomachaches, or intestinal issues.
• Emotional exhaustion: Individuals feel drained and tired. They have a lack of energy to complete their work.
• Reduced performance: It can affect everyday tasks both at work and at home. They feel negative about tasks and have difficulty in concentrating. They also have a lack of creativity.
• Depression: Employee burnout can share similar traits to depression and include feelings of hopelessness and cognitive and physical symptoms.

As we can see, employee burnout is important to combat not only for job resignation purposes, but for the mental well-being of employees. Some may even say that the Great Resignation is causing more employees to burnout due to hiring needs because of the Great Resignation. In some cases, this trickled down effect is probably very true. So, how do we stop the Great Resignation? How can we keep our employees from leaving? One place to start is by investing time and money into your employees to avoid burnout. In this blog, we will take a look at (8) ways to keep employees happy and employed at your company.

1. Check-In with Employees

Frequent check-in meetings with employees are important to see how they are doing. It’s an opportunity for managers to see how their team members are feeling and if they are stressed out with tasks they have at hand. These meetings are probably one of the best ways to detect employee burnout. It also gives employers an opportunity to consult individually with those employees who are beginning to feel burned out and to discuss ways you can help.

Check-in meetings are also an opportunity to discuss employees‘ goals at your company. Harvard Business Review suggests asking employees, „if they could shape their dream job at your company, what would it be?“ This gives employees the floor to share the direction they would like to head into and allows you to begin thinking about shaping this role for them. It also encourages employees to know you are thinking about long-term growth opportunities for them at your company.

Employees also like to know they are valued and are making an impact at the company they work for. During your check-in meetings, be sure to spend time acknowledging their work and the value they are providing. Employees want to know they have a purpose at your company.

Things to consider:

• Some of your check-in meetings you may want to hold off-site, such as at a coffee shop. Depending on how often you meet, you may not do this every time, but meeting outside the office to have some of these conversations is a way to talk in a casual, open environment. It is also a relatively inexpensive way to take an employee out.
• Managers should consider holding weekly 15-minute meetings. Jennifer Moss, author of the new book, „The Burnout Epidemic: The Rise of Chronic Stress and How We Can Fix It,“ suggests holding short 15-minute weekly meetings. These meetings can be used to discuss the highs and lows of the week and what managers can do to make things easier the next week. It’s a simple task that can pay off in terms of mental wellness and productivity. Jennifer also noted that specific questions should be asked to best assess how an employee is doing. Her research found that an average person says they are „fine“ 14 times a week when they are asked how they are doing; 19% of the time they are lying.

2. Monitor Workloads

Managers should monitor workloads and ensure no one has an unreasonable amount. Workloads may spike at certain times of the year; however, managers will want to make sure employees don’t sustain heavy workloads throughout the entire year. Evaluate employees that have demanding workloads and try to find ways to alleviate that workload from their schedule. Also monitor expectations and goals. Be sure you are setting attainable goals so no one is overstretched and works tirelessly to achieve them. Goals need to be reachable.

3. Provide Mental Health Support

There are a number of ways employers can provide mental health support to employees. Providing mental health days is one way to do so. It allows employees to take time off for self-care and needed time off for themselves. Mental health days may be something to consider implementing in 2022 if it is not already offered at your company.

Employee Assistance Programs that offer wellness counseling is also something to consider looking into as an addition to your benefits package. Some healthcare providers already offer counseling and wellness programs with their health insurance so it’s something to look into if you are unsure if your health insurance provides it. If it is included with your insurance, share this information with employees so they know it is available to them.

You may also think about bringing in a wellness coach a few times a year where they can offer best practices to employees on mental health. This is a nice opportunity for a group lunch and learn. You can even consider doing wellness group activities during the lunch hour, such as yoga, painting, bringing in a masseuse, etc.

Lastly, encourage employees to take a break if they are feeling overwhelmed or stuck with a project. A simple walk or snack break can help them decompress and come back with a fresh mind!

4. Survey Employees About Working at Home vs. in the Office

There are pros and cons to working at home versus coming into the office. A recent survey by Bankrate, showed that 56% of workers preferred remote work or adjustable hours. Having the ability to work from home has been another factor contributing to the Great Resignation. At the same time though, the disconnect from co-workers and lack of socialization problems are real. According to the Buffer 2021 State of Remote Work survey, 16% of respondents reported difficulties with collaboration and 16% also reported loneliness while working at home. Is hybrid the magic fix? From personal experience, it seems like many enjoy the hybrid work schedule because you get the best of both worlds. To see what is best for your organization, consider sending out a survey to your employees to gauge what majority of employees would prefer. The survey will share insight in what schedule would make your employees most happy.

5. Promote Office Camaraderie and Connection

Making time to connect and build relationships among team members is also important. This can go hand in hand with the above topic of working at home. Whether you have employees working at home, in the office, or a hybrid schedule, it is important to promote an environment where people can get to know one another. According to Harvard Business Review, their COVID-Era survey data showed that both blue and white collar workers around the world place a higher priority on having a „good relationship with co-workers“ than on many other job attributes.

If you are not able to hold in-person events, virtual events can be held, such as virtual happy hours or team trivia. You can even have virtual cooking or cocktail making classes. Anything that can help bring the team together for a good time is beneficial for office camaraderie. In-person social events are definitely a better way for employees to get to know one another, however, virtual events are a good alternative if in-person is not possible.

6. Encourage Work-Life Balance

Work-life balance has probably always been important for most workers; however, it’s becoming a greater factor now when deciding to work or stay at a company. As a best practice, encourage employees to take vacation time, especially as you near the end of the year and employees still have vacation time left. This allows employees to know that you care about their well-being and that you want them to be able to enjoy time off.

Another good practice is to shut down the office early for holidays, if possible. This helps enforce the importance of spending time with family, especially over the holidays. It’s also important to offer flexible schedules to accommodate for family or religious events. If someone has a personal obligation, welcome an environment that allows them to tend to important personal events during the work day.

Lastly, some companies even offer a more flexible schedule by allowing workers to start and end work at any time as long as they get in 8 hours a day. If someone is more productive starting earlier or working later, why not allow them if they get in the same hours of work?

7. Upskill Employees

Upskilling employees is a practice that can offer great benefit for employers. It can help employees increase job satisfaction (avoiding burnout) and in return help retain employees. It also has financial benefits for the company.

What is upskilling exactly though? According to AG5, it is the process of taking skills and knowledge in a certain area to a new level. It’s also an opportunity to promote employees and help them grow instead of hiring new individuals.

Monster’s Fall 2021 Hiring Report, showed that 45% of workers would be more likely to stay with their employer if they were offered skills training. It offers a new exciting experience for employees, especially for those that have had the same role for a few years. Instead of finding a different job, this gives them the opportunity for a new role at your company. Financially, a Gallup survey reports that the cost of replacing an individual employee can range from one and a half to two times the employee’s annual salary. This is probably very true when you think about spending money advertising the position, onboarding someone new, and all of the other expenses that goes into recruiting a new employee. Starting salary for that person may even be higher then if you were to promote someone from within.

8. Provide Management Training

Management training may be something to consider offering to new managers as well. Managers play a crucial role in employee engagement and retention. A study performed by Randstad showed that 60% of respondents said they had left a job or would leave over a bad boss, with 58% indicating that they would stay at a job with a lower salary if that meant working for a great boss.

Poor managers can induce stress on employees and drive them out the door. Management training can help managers learn best practices for managing employees. They need to be equipped with skills to provide appropriate feedback, to communicate effectively and clearly, to have the ability to set reasonable expectations, recognize employees for achievements, and be able to delegate tasks. Great managers can make a huge impact on company culture and employee morale!

The Beginning of the End of the Great Resignation

We just took a deep dive into 8 ways to combat employee burnout. Employee burnout is very real and has become an even more prominent problem during the pandemic. It is one area though that employers can try to get under control in order to avoid further resignations. It might not be the only answer to end the Great Resignation, but keeping employees happy and healthy is certainly a good place to start.

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Makler Heidelberg

The Wild West

The Wild West refers to the period from the end of the Civil War in 1865 to around 1900.

It tells the stories of the pioneers, the settlers, the cattle kings, gold mining, railroads and steamboats, the cowboys, Indians, outlaws and gun slingers.

Famous characters of the Wild West include Whyatt Earp, Doc Holliday, Bat Masterson, Billy the Kid, Calamity Jane and Belle Starr.

After the first European settlers arrived in America, many move westward seeking a new life and the promise of prosperity.

The West offered land, good soil for farming and new opportunities to get rich that could not be done in the East.

The Two-Fisted Town Tamer

Thomas James Smith, also known as „Bear River Smith“ (12 June 1830 – 2 November 1870), was a lawman in the American Wild West and a marshal of cattle town, Abilene, Kansas.

Smith was a quiet-spoken lawman with a rugged reputation who came from New York City, where he worked as a police officer.

While working as a police officer in New York City in 1868, Smith was involved in the accidental killing of a fourteen-year-old boy, after which he resigned.

He also served as a lawman in small towns in Wyoming, Bear River and in Kit Carson, Colorado.

Marshal of Abilene

Abilene, Kansas, was a wild cattle town with numerous saloons, brothels and lawlessness.

From 1867, crime had increased to the point where murder and shootings were a regular occurrence.

Tom Smith was commissioned as Deputy US Marshal to bring law and order to Abilene in 1869 and insisted that he could enforce the law by using his fists rather than using guns.

Soon after taking office, Smith overpowered both, „Big Hank“ Hawkins and „Wyoming Frank“ and banished them from Abilene, after beating them both at the same time using only his bare hands.

Smith also introduced a „no guns in the town limits“ law which was extremely unpopular.

Over the next two months, Smith survived two assassination attempts.

His tough reputation and several arrests of law-breakers led him to become widely respected and admired by the citizens of Abilene.

On the 2nd of November, 1870, Smith and a temporary deputy went to serve a warrant to Andrew McConnell and Moses Miles about the murder of another Abilene citizen.

They located the suspects ten miles outside of Abilene where a gunfight erupted.

Smith was badly wounded in the chest and his deputy fled the scene.

Moses Miles then took an axe and decapitated Tom Smith.

McConnell and Miles were captured and arrested in March 1871.

Andrew McConnell got 12 years in prison and Moses Miles spent 16 years and released.

Tom Smith was buried in Abilene, and a huge tombstone was erected with a plaque to honor his service in Abilene.

Smith was replaced as marshal by legendary lawman and gunfighter „Wild Bill“ Hickock.

Ronald Reagan, as the host of the syndicated western television series, Death Valley Days, played Smith in the 1965 episode „No Gun Behind His Badge“.

Colter’s Run

John Colter (c.1770-1775 – May 7, 1812 or November 22, 1813) was a mountain man and explorer who was a member of the Lewis and Clark Expedition of 1803 to 1806 commissioned by President Thomas Jefferson, to explore and map the newly purchased American Northwest from Napoleonic France, and beyond after the Louisiana Purchase of 1803.

Colter also became the first person of European descent to enter the region which later became Yellowstone National Park and to see the Teton Mountain Range during the winter of 1807-1808.

Blackfeet Indians

In 1809, Colter teamed up with John Potts, another former member of the Lewis and Clark Expedition to trap for beaver for the lucrative fur trade near the Jefferson River in what is now Montana when they encountered several hundred of the dreaded Blackfeet Indians while traveling by canoe.

The Blackfeet demanded they come ashore.

Colter complied and was disarmed and stripped naked.

Potts refused and was shot and wounded.

Potts then killed one of the Indian warriors and was immediately riddled with arrows fired by the Indians from the shore.

His body was then brought to shore and hacked to pieces.

Run-For-Life

After the Blackfeet deliberated how to kill Colter, the chief decided to allow him to run for his life and to be chased by the Indians with spears.

They took him to a nearby plain and gave him a three to four hundred yard start.

Colter, knew that he must outrun the Blackfeet if he had any chance of surviving.

He started his run-for-life across the plain and had out-paced the Indians except for one who was about twenty yards behind him.

Determined to avoid the expected spear-throw, he suddenly stopped, turned around, and spread out his arms.

The surprised Indian, too exhausted from running, fell when he tried to throw his spear.

Colter immediately snatched up the spear and killed him then, continued his run with the rest of the Indians following at a distance.

Colter reached the Madison River, five miles from his start, and hid under driftwood near a beaver lodge.

He could hear the yells of the Blackfeet, who looked up and down the river to find him.

He waited till night, then climbed out and walked completely naked and frozen, toward a trader’s fort.

Colter became weaker from hunger and exhaustion, surviving only on roots and bark and had bloodied feet from prickly cactus thorns piercing his feet.

Miraculously, Colter reached Manuel Lisa’s Fort within seven days where he was greeted by his friends.

After a few weeks when he regained his strength, he headed back to Blackfeet country that winter to collect the traps he had left behind.

John Colter lived five more years after his incredible run, dying of jaundice in Missouri, where he lies in an unmarked grave.

Alexander Todd

Former clerk, Alexander Todd got gold fever so, he went to California to seek his fortune.

He soon realized that he didn’t have the physical stamina to endure the backbreaking work at the gold fields in the freezing rivers of the Mother Lode (rich source of an ore or mineral).

However, it didn’t take him long to find opportunities to make money without having to pan for gold.

California Gold Rush

California had grown fast with the gold rush that getting a letter from San Francisco to the Mother Lode country was difficult.

The federal government was shipping mail to California by way of the Isthmus of Panama, a route that was as lengthy and uncertain for the mail service as it was for the Forty-Niners (gold seekers in the California gold rush of 1849).

Todd scoured the mining camps and signed up hundreds of lonely miners who yearned for word from home.

The nearest post office was in San Francisco which was a two-week trip there and back.

The miners couldn’t leave their claim that long so they signed-up for the mail service.

On July 14, 1849, Todd began carrying mail to the San Francisco post office charging $2.50 a letter and an ounce of gold, $16 for personal delivery of any mail that he found for addresses in the mining camp.

On his first trip, he delivered $150,000 in gold for some merchants to a company in San Francisco and was paid $7,500.

When Todd handed the clerk at the San Francisco post office the long list of names, the clerk swore Todd in as a postal clerk so he could search the stacks of letters himself charging twenty-five cents for each letter he found.

That didn’t bother Todd because he had discovered another way to make money.

He bought old New York newspapers for a dollar each and sold for $8 back at the gold fields.

Another money-making business he introduced was packing gold from the mining camps to deposit in San Francisco in exchange for five percent of its value.

Everything he Did Turned to Gold

Without having to touch a pick or a shovel, Alexander Todd made a fortune using good old American ingenuity.

Charles Marion Russell (1864 – 1926)

Charles Marion Russell, „the cowboy artist,“ storyteller and author (also known as C. M. Russell, Charlie Russell, and „Kid“ Russell) was born in St. Louis, Missouri on March 19, 1864.

He was an artist of the American Wild West who created more than 4,000 works of art during his lifetime, working in paint, bronze, ink, and wax of cowboys, Indians, and landscapes, set in the Western United States and in Alberta, Canada.

Russell loved the „Wild West“ and would spend hours reading about it and enjoyed speaking to explorers and fur traders who came through Missouri.

He learned to ride horses at Hazel Dell Farm near Jerseyville, Illinois, on a famous Civil War horse named Great Britain from Col. William H. Fulkerson, who had married into the Russell family.

At the age of sixteen, Russell left school to follow his dream of the Wild West as a cowboy on a sheep ranch in Montana then, moved on to work with Jake Hoover, a hunter and trapper who had become a rancher.

From Hoover, he learned much about life in the Wild West and they remained lifelong friends.

In 1882, at the age of eighteen, Russell worked as a cowboy for a number of outfits in Montana.

It was in 1885 when he began to work as an artist.

During the winter of 1886-1887 while working on the O-H Ranch in the Judith Basin of Central Montana, he painted a number of watercolors.

When the ranch foreman received a letter from the owner, asking how the cattle had weathered the winter he sent a postcard-sized watercolor that Russell had painted of a haggard steer being preyed by wolves under a gloomy winter sky.

The ranch owner showed the postcard to friends and business acquaintances and eventually it was displayed in a shop window in Helena, Montana giving Russell his first taste of publicity and to receiving commissions for new work.

His watercolor, „Waiting for a Chinook“, became one of his best-known works.

Native American Culture

In 1888, Russell gained valuable knowledge of Native American culture when he spent time with the Blood Indians, a branch of the Blackfeet.

He became an advocate for Native Americans and supported the Chippewa to have a reservation established for them in Montana.

In 1916, Congress passed legislation to create the Rocky Boy Reservation.

Marriage

In 1892 he settled in Great Falls, Montana and in 1896 he married his wife Nancy.

Between 1904 until his death in 1926, he also modeled 46 subjects to be cast in bronze.

His 1914 painting „When the Land Belonged to God“ is a nostalgic work from an ageing artist looking back on his youth in the Wild West..

Worlwide Acclaim

Charles Marion Russell had now become a celebrity and gained worldwide acclaim.

*Four Russell paintings sold for more than $100,000.

*“Water Girl (No. 1),“ sold for $220,000.

*“Blood Chief“ brought $200,000.

„Portrait of Indian“ sold at $150,000.

His 1918 painting Piegans sold for $5.6 million.

In 1955, he was inducted into the Hall of Great Westerners of the National Cowboy & Western Heritage Museum.

The Iconic Stetson Hat

John Batterson Stetson (May 5, 1830 – February 18, 1906) was an American hatter who founded the John B. Stetson Company manufacturering the classic cowboy hat in 1865 during the Gold Rush.

The Stetson is probably, the best known hat in the world and is synonymous with the cowboy lifestyle.

It has become an American classic like baseball, apple pie and the Fourth of July.

Stetson, had his name, John B. Stetson Company, embossed in gold in every hatband and became the most well-known hat in the West.

He sold his first hat for five dollars and by 1900, he had the largest hat factory in the world.

John B. Stetson

John B. Stetson was born in New Jersey, the 8th of 12 children.

His father, Stephen Stetson was a hatter so, as a youth, John worked with him until he was diagnosed with terminal tuberculosis.

In 1859, he left the hat-making business to explore his passion for the American West and hoped to cure his tuberculosis in a more natural environment.

While there, he worked during the Gold Rush at Pike’s Peak, Colorado, where an estimated 100,000 gold seekers took part in one of the greatest gold rushes in North American history.

During his time in the West, Stetson also met drovers, bullwhackers and cowboys and noticed their flea-infested coonskin caps, sea-captain hats, straw hats and wool derbies worn by many offered no protection.

He thought that an all-weather hat was better suited for the rugged environment of the West and decided to invent a waterproof, felt-hat that was durable, lightweight and natural in color with a four-inch crown and wide brim with a plain strap band.

„Boss of the Plains“

In 1865 Stetson returned to Philadelphia and founded the John B. Stetson Company as a manufacturer of hats designed in the style worn by the Vaqueros (cowboys) of Northern Mexico for the demands of the American West.

He mass-produced the „Boss of the Plains“ hat as a symbol of authority and elegance.

The wide brim protected people from the hot sun.

The crown could be used to water a horse.

The brim could be used by the owner as a cup to drink.

The hat could be used to shunt cows in certain directions.

And, it could be used to fan a fire.

Famous People Who Wore a Stetson.

Western icons such as Buffalo Bill Cody, Calamity Jane and Annie Oakley wore Stetsons.

So did famous cowboy actors like Tom Mix, Will Rogers, Roy Rogers, the Lone Ranger and John Wayne.

Many U.S. Presidents wore Stetsons which included Theodore Roosevelt and Ronald Reagan.

The company also made hats for the Texas Rangers, U.S. Cavalry soldiers and employees of the National Park Service.

Immobilienmakler Heidelberg

Makler Heidelberg

Although, there are over 1.3 million, real estate agents, in the United States, only, a small – minority, of them, are responsible, for the vast majority of the transactions, which occur! Since, for most of us, the value of their house, represents, their single – biggest, financial asset, wouldn’t it make sense, to very carefully, choose the individual, to hire, to represent you, and your best – interests? How should quality agents, demonstrate, and prove, their value? Doing so, demands a variety of skills, assets, attitude, persistence, discipline, integrity, etc, and, there is no such thing, as one – size – fits – all! Before, hiring the right person, to serve and represent, one’s interests, it is essential to, clearly, prove, he is worthy of their respect, etc! With, that, in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 8 ways, quality agents consistently, prove their worth/ value!

1. Effectively listen to prospective clients: Observe, when interviewing agents to represent you, whether, the individual, effectively, listens, to you, and your personal needs, concerns, priorities, etc. How can anyone, represent your best interests, unless/ until, he commits to doing so?

2. Thoroughly, discuss, and discover, what prospective client, seeks, and needs: While some proceed, by trying to, merely, tell someone, what he believes, they want to hear, I strongly believe, in my service – mark, I’ll always tell you what you need to know, not, just, what you want to hear! It is wise, for client and agent, to know, trust, and believe, in – each other, throughout the process!

3. Discuss/ explain suggested marketing plan: What makes one’s marketing plan, different, in a meaningful way, from others? Since, one’s house, is so financially (and, other ways) relevant, it’s essential/ important, for both sides, to work together, on the same – page!

4. Explain concept/ teamwork/ strategy: Real estate agents, owe it, to their clients, to thoroughly, explain their concept, strategy, reasoning, action plans, and, the importance of well – considered, teamwork!

5. Commitment/ discipline/ efforts: Agents can’t, and should never, go – through – the – motions, and proceed, forward, with the level of consistent, true commitment, and the discipline, to maximize their efforts, for the client’s best – interests!

6. Regular updates: Communication, and providing regular reviews, and updates, must be an obligation, for agents! An essential component of representing someone, during stressful times/ periods, is holding – their – hands, throughout the entire period/ process/ transaction! From the onset, it’s important to pre – plan, for, regular, periodic updates, to thorough discuss, all relevant components, and/ or, necessary adjustments, during the period!

7. Quality negotiating: It takes quality negotiating, and an understanding of market, and economic conditions, in terms of supply – and – demand, etc, to make a significant difference, for the better!

8. Close the best deal: Meaningful representatives listen to potential deals, and help, bring them, forward, and, then, have the skills, and self – confidence, etc, to close the deal, with the best combination of minimizing the amount of time needed, enhancing the price offered, and addressing, any, and all conditions, etc.

Hire an agent, who will strive, to clearly, demonstrate, and prove his value, consistently, by a combination of skills, efforts, and a positive, can – do, attitude. Before you, buy, or sell a house/ home, doesn’t it make sense, to hire, the right agent?

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Makler Heidelberg

Buying a home is a big step in your life and should be a very exciting time. Unfortunately, many individuals rush into buying a home with out considering the implications is has on their future. If you’re considering making the move to own it’s important you weigh all the options, and consider what if anything will affect the feasibility of you’re purchase. If this is you’re first time in the housing market consider the following before you make your big move.

1. Get Your Finances in Order

   Have a lot of debt racked up? If thats the case, you may want to play catch up before you even think about buying a home. Bad credit is bad news for those who want a buy a new home. In most cases you will need to get a mortgage before you buy and this means your credit will be under scrutiny. Start getting acquainted with your credit score and begin fix the problems well before you apply for a mortgage.

2. Think about the Future

   If you have a job or other obligation that may require you to move or travel for extended periods of time you want to think twice about rushing into the housing market. Buying a house is a commitment that will tie you down to a particular location for at least a few years. It’s not easy or economically feasible to pack up and sell your home at the drop of a hat.

3. Educate Your Self

   As a first time home buyer one of the worst thing you can do is go into the market unprepared. Familiarizing your self with words and phrases that are used will allow you to better comprehend the market. A better understanding of the home buying process will enable you to make a well educated decision when it comes to you’re final purchase. Entering the market blindly can turn you’re home buying dreams into a nightmare.

4. Be Rational

   We all want to live in the home of our dreams. Unfortunately, like most things in life, the housing market must be approached from the bottom up? Renting is the start of the home owners journey. With your dream home serving as the final destination you will most likely need to take a few stops on the way there. The logical step is to buy a house you can afford not one that lands you in economic turmoil. Consider your first home an investment that you can improve upon over time. Once the home is improved you can sell it and bring yourself one step closer to your dream home. Buying out of your league can be a huge problem so set a budget and find a home within your means.

5. Ask For Help

   Don’t be determined to have a go at it alone. Buying a home is a complicated process and sometimes it really helps to have someone walk you through it step by step. Agents are more than willing to help you look through home listing, find what your looking for, and ultimately take you from start to finish.

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Makler Heidelberg

May 27, 2010 Down Payment Assistance Programs (DPA’s) for First Time Home Buyers By: Michael A. Foote, CMB

There is money available for first time homebuyers today. In a much needed addition to financing products available today, down payment assistance programs are available once again. Down Payment Assistance Programs are generally a local, state or federal grant or bond program designed to assist certain persons with certain income levels in certain areas, with money that can be used for down payment and closing costs on many purchase loans.

These tax free grants or loans are generally forgivable provided the buyer stays in the home for a designated amount of time. And these dollars can dramatically change the amount of money required for closing when these first time homebuyers buy a home. For example, a typically FHA borrower may have to come up with over 4-7% total of the sales price whereas a borrower with a WISH down payment assistance program may only need to bring in 2-3% total. That’s a huge amount of money on a several hundred thousand dollar transaction. If you amortize out that difference the savings are literally tens of thousands of dollars since most closing costs are financed in the new mortgage.

So what does the process with „DPA“ look like when compared to the regular loan process. Quite frankly, it’s seem less to the user insofar that the lender will generally have to deal with the additional hoops during the process. For the borrower/buyer they probably wouldn’t know the difference. The only real difference is a potential for a slightly longer loan processing time. So is DPA a good idea? Well, lately it has been a challenge for Realtors to get clients using FHA let alone FHA WITH Down Payment Assistance so an argument could be made that using DPA on an Offer to Purchase could be a determining factor for the seller’s side when these choose the offer to open escrow with. The only cure for this pitfall will need to be more product on the market for properties up to the $400,000 range as DPA generally have no purpose and no qualifying borrowers as the sales price rises and/or in areas of high per capita income. Undoubtedly, DPA has a place in today’s financing landscape and those of in the industry are happy to have it, it is one more additional tool to increase homeownership for low to mid income families. And this product will help sell the forecasted shadow inventory rumored to be lurking around the corner.

Only time will tell if that come to fruition or not. These programs are not free from abuse, there have been in the past scams related to DPA and officials, lenders, and large institutions have really scaled back what is allowable as DPA. Also economics play into the availability of these from all the time. There are many DPA’s completely drained of funds.

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Makler Heidelberg

First-Time Home Buyers Assistance

Florida Housing is a State Financing Corporation created over 20 years ago to help Floridians obtain safe, decent housing that might otherwise be unavailable to them. Their „First-Time“ Homebuyer Program provides low interest mortgage loans and financial incentives throughout the year, for eligible homebuyers who haven’t owned a home as a primary residence within the past 3 years.

Program Highlights

The program offers low-interest 30 and 40 year fixed-rate loans, downpayment and closing costs assistance as well as access to credit counseling.

Teachers, firefighters, healthcare workers, police officers, as well as active duty and veteran military personnel could be eligible for lower interest rates.

Eligible applicants include individuals who:

 have never owned a home,

 don’t claim their mobile home as real property,

 haven’t owned a home as their primary residence within the past three years,

 have established credit worthiness,

 have an annual income that does not exceed program limits.

Downpayment Assistance

Florida Housing offers two downpayment and closing cost assistance programs in the form of second mortgage loans, and one in the form of an upfront cash assistance to help eligible homebuyers cover their downpayment and closing costs.

Downpayment Assistance

Programs: Offers Up To:

(Income limits apply)

FLORIDA ASSIST PROGRAM $10,000- Applicants with annual income at or below 80% Area Median Income

ASSISTANCE FOR MODERATE INCOME (HAMI) $5,000-Applicants with moderate income

The City of Orlando offers a Downpayment Assistance Program, available to low and moderate income first-time homebuyers for the purchase of a home within the City limits of Orlando. Depending on the gross household income, assistance may be $10,000, $20,000 or $30,000.

Teachers and public safety personnel, who are moderate income, may qualify for $20,000 of assistance. City of Orlando employees, teachers, and public safety personnel who are purchasing homes within the city limits of Orlando do not have to be first time homebuyers. Purchasers must occupy the property as a principal residence for at least ten (10) years. The downpayment assistance becomes a grant once the period of affordability has been satisfied.

Orange County provides funds to qualified first time homebuyers for down payment and closing costs associated with purchasing a home. The program provides assistance to qualified low and moderate income persons in Orange County on a first come, first ready basis. The program also requires that potential homebuyers complete a pre-purchase and post-purchase education program.

The buyer must:

 Meet the income requirements. Annual household income cannot exceed 120% of the area median income.

 Provide at least $1,000 of their own funds.

 Complete a home buyer’s education seminar.

 Secure first mortgage financing.

The property must:

 Be new or existing and located in Orange County, outside the city limits of Orlando.

 Not exceed a sales price of $219,000.

 Receive competitive fixed rate financing.

 Be fee simple ownership.

The assistance:

 Maximum ranges from $20,000 to $35,000 depending on household income.

 The County’s assistance is provided to the buyer’s closing agent at closing in the form of a soft second mortgage at 0% interest which is forgiven after fifteen (15) years if the home remains owner-occupied.

 In addition, the total first mortgage and Orange County’s second mortgage may not exceed 105% of appraised value.

Home Buyer’s Education Program

All participants requesting down payment assistance must attend a free Homeowners Education workshop. This provides education and technical services to assist eligible low and moderate income families in the process and procedure connected with the purchase of an affordable single family fee-simple housing unit. Homebuyers Education addresses such topics as choosing a realtor, qualifying for a mortgage, inspecting a house, contracts for sale, home maintenance and credit issues.

The Orange County Finance Authority is a government organization that provides mortgage financing with lower interest rates than what is available in the market. Their financing products reduce long-term mortgage costs. Plus, if eligible, you may obtain additional down payment/closing cost assistance from other sources along with this financing!

In order to qualify for home financing, certain eligibility requirements must be met:

 You have not had an ownership interest in a primary residence during the previous three years. (Unless the property is located in a federally designated „Targeted Area“.)

 Property must be owner-occupied for the term of the loan or until the property is sold.

 Have the legal right to permanently reside in the United States

 Meet credit and loan requirements

 Do not exceed the income & purchase price limit

 Veterans can waive First-Time Homebuyer Rule

City of Kissimmee Community Redevelopment Agency offers financial grants to new homeowners within the Community Redevelopment Agency district (CRA), in order to provide economic support to the downtown businesses. It is designed to attract new residents to targeted areas within the Community Redevelopment district. There will be no income limitations placed on the granting of these funds.

Funding will be granted based on establishment of owner occupancy of the subject property. The grants will be given on a first come, first served basis after certain qualifications have been met.

The agency offers financial grants to eligible employees of employers in the CRA Overlay District on a first come, first served basis to be used towards the purchase of a home. Plus, there are incentives for Teachers to be used towards the purchase of a home in the CRA Overlay District on a first come, first served basis.

Osceola County provides funds to qualified first time homebuyers for downpayment, closing costs associated with purchasing a home, and financing with lower interest rates than what is available in the market. The program provides assistance to qualified low and moderate income persons in Osceola County on a first come, first ready basis. The program also requires that potential homebuyers complete an education program.

The buyer must:

 Not have owned a home in the last three years.

 Attend a Home Buyers Orientation Session and complete a Home Buyers Education Program.

 Have a minimum of $1,000 to contribute toward the costs of buying a home.

 Have an annual income that falls within the area median income guidelines as defined by the U.S. Department of Housing and Urban Development. Additional terms may apply.

The property must:

 Must be located in Osceola County.

 New home or existing homes must not exceed $200,000. If within the City of Kissimmee homes must not exceed $240,000.

 No mobile homes.

 Manufactured homes must have DCA insignia seal.

 Must be a single family home, condominium, town home or villa.

The assistance:

 Maximum ranges from $39,000 to $69,000 depending on household income.

 The Loan is provided to the buyer’s closing agent at closing in the form of a soft second mortgage which is forgiven after ten (10) years if the home remains owner-occupied.

Repayment of the loan becomes due if:

 Borrower defaults on the first mortgage.

 The house is sold refinanced with equity cashed out.

 The house is rented, leased, subleased or ceases to be owner-occupied prior to the end of the loan period.

 No Home Equity Line of Credit borrowed against the property.

Home Buyer’s Education Program

All participants requesting down payment assistance must attend a free Homeowners Education workshop. This provides education and technical services to assist eligible low and moderate income families in the process and procedure connected with the purchase of an affordable single family fee-simple housing unit. Homebuyers Education addresses such topics as choosing a realtor, qualifying for a mortgage, inspecting a house, contracts for sale, home maintenance and credit issues.

SHIP Program (State Housing Initiative Partnership)

The State Housing Initiatives Partnership (SHIP) Program provides funds to produce and preserve affordable housing through the creation of a partnership between the public and private sectors. The funds are derived from the collection of documentary stamp tax revenues, which are deposited into the Local Government Housing Trust Fund. Based on a population-based formula, SHIP funds are distributed to local governments each month.

These funds are available to Home Buyers through the Downpayment Assistance programs above.

Immobilienmakler Heidelberg

Makler Heidelberg

Buying properties in Florida takes more than just contacting the seller or their real estate agent. To get the most value for your money, it helps to know the many ways you can protect yourself as a buyer. To the first-time home buyer, one might get so excited going through the public listings and try to negotiate with the real estate agent or the seller himself. But without professional advice, there are many ways that additional costs can easily add up. These are costs that the new home buyer may not realize until the final transaction or closing.

First of all, it helps to know that there are different agent relationships in Florida. There are transaction brokers who are there to facilitate a transaction with neither loyalty to the seller nor the agent. Then there are those seller’s agents whose main role is to get the highest price for the seller as well as protect the seller’s interests and facilitate a fast sale. The third agent relationship is a buyer’s agent but working in a listing office. This clearly has a conflict of interest because they may have the buyer’s interest in mind but, since he/she is working in a listing office, said buyer’s agent is bound to protect the interests of the listing office as well.

These options do not really have the full buyer’s interests in mind. Yet, for a first-time home buyer, doing it on your own may present you with surprises like hidden costs in terms of repairs or closing costs passed on to the buyer. There are many other surprises that a new buyer may not realize, and your best bet is to have an agent whose interests are fully for the protection of you as the buyer. With having a buyer’s agent, you have peace of mind that you have a professional who knows the right questions to ask the seller or the seller’s agent, who knows how to negotiate, and lastly to determine the correct value for the buyer’s money.

For example, what is the current real estate market trend in the area? Are there repairs needed and what is the best way to negotiate about the repairs? When was the last time the roof was changed? Is there no past repair that still has a record of a violation?

These are just a few of the many other issues that can come up for first-time buyers. It helps to have a real estate professional, an agent whose sole motive is to protect the home buyer.

Immobilienmakler Heidelberg

Makler Heidelberg