The first quarter of 2024 is off to a great start at FAN and Closingsuite.com. The real estate industry has gotten the message: affiliated title arrangements can be a great source of additional revenue as we await the market rebound (although it’s not the right answer 100% of the time!) We’re also fielding a ton of inquiries and questions about digital closings and our Ron as a Service capabilities through FAN and Network Transaction Solutions. Aaron shared his thoughts on that concept in PROGRESS IN LENDING not too long ago, in fact.
As Aaron wrote in his latest Housing Wire Closing Time article, (registration required) 2024 will see even more ABA activity. This will be true even as origination and order volume begin to rebound.
We can’t ignore the elephant in the room, either. 2023 may well be remembered as a watershed moment in the way REALTORS operate thanks to the Burnett decision. RESPA News asked Mike LaRosa about the impact of that decision, and he shared some interesting ideas about the new business models that might spring out of that decision. (HINT: Mike also believes the decision will impact ABAs). Be sure to download the State of the Industry Report – it’s free – to see.
Buckle up because we’re just getting started!
In the coming months, you’ll see more of Mike, Aaron and other special guests as we continue our Build, Grow and Sell ABA video series.
The Title Report has asked Aaron to join them for a free webinar on Strategic Planning for 2024. We have a feeling ABAs (and RON) will come up once or twice. Register now to hear his thoughts (as well as leading industry thought leader Jim Campbell). That takes place Tuesday, February 13 at 2pm.
Aaron will also take the stage (along with the highly regarded national RESPA attorney, Brian Levy) at RESPRO’s One-Stop event in Houston (March 7 – March 8) to discuss – what else? – how to build a compliant affiliated title operation. If you haven’t been to a RESPRO show, they’re packed with great content and great networking. Register now – it will be March before you know it.
Mike, Aaron and several other members of our leadership team are also finalizing appearances at other events, podcasts and webinars. We can’t tell you about them (yet), but chances are, if you’d like to learn more about affiliated arrangements or RON as a Service, you’ll get the chance this year.
Or, better yet, why wait to hear from us? Our Closingsuite.com brand is dedicated to, among other things, helping title agents, mortgage lenders and real estate brokerages build successful ABAs (or avoid them for better options.). Contact us today with your questions. We’d love to help! We’ll even conduct a no-obligations assessment of your strategy or existing option – what’s better than free?
Hopefully, we’ll see you soon.
In the ever-evolving world of real estate, homeownership dreams can sometimes feel like reaching for the stars, especially for first-timers up against a market faced with soaring prices and higher mortgage rates. As industry pros, you understand the hurdles many novice homebuyers face.
Amid these challenging market conditions, Florida Agency Network remains dedicated to helping you deliver top-notch service to your clients. Let's explore four strategies you can add to your toolkit to assist clients on their journey toward homeownership.
Many first-time homebuyers might be priced out of purchasing in their current or preferred neighborhoods. As industry pros, here’s where you can advise them to think outside the box. Exploring more affordable communities that offer similar amenities can help them settle into homeownership sooner. Lately, more buyers are discovering hidden treasures by relocating to regions with a lower cost of living. For those with remote work options, this can open up a world of possibilities.
For clients committed to staying put in a location where buying is beyond their budget, you can introduce them to a unique approach. They can continue renting in their desired area while purchasing an investment property in a more affordable neighborhood. This strategy allows them to start building equity to apply toward their future dream home.
Sometimes, it’s necessary to help clients understand that the perfect home with all the bells and whistles might be financially out of reach. Alternatives like townhomes or condos typically cost 20% to 29% less than single-family homes. Encourage them to consider these other options to get them into their own home sooner rather than later, even if it means sacrificing a private yard or garage.
Educate your clients about the power of co-ownership. If it’s in the cards, suggest they explore the option of teaming up with someone to purchase a property. Whether they live together as roommates, treat the property as an investment, or create other innovative arrangements, a partnership can make homeownership much more attainable. Remember to stress the importance of establishing a legally binding contract that outlines clear terms and an exit plan if the partnership dissolves.
As members of our FAN family, you play a crucial role in helping first-time homebuyers navigate these challenges. By sharing these creative strategies and remaining flexible, resourceful and informed, you can assist your clients in transforming their homeownership dreams into reality.
In the ever-competitive real estate landscape, Florida Agency Network recognizes the importance of reputation management – particularly in today’s digital age. Client feedback holds significant sway in shaping a business’s reputation. While responding to negative reviews is a given, a recent article on FloridaRealtors.org also emphasizes the importance of expressing gratitude to positive reviewers.
Positive reviews are like golden nuggets, helping prospective clients make informed decisions. However, the story shouldn’t end once the glowing review is posted; that’s only just the beginning.
Responding to positive reviews conveys a genuine expression of gratitude. It demonstrates that you value your clients and their opinions. A simple “Thank you for your kind words” can go a long way in fostering goodwill.
A collection of unaddressed positive reviews may raise doubts in potential clients’ minds. By actively responding, you confirm the authenticity of these reviews and showcase your dedication to maintaining a stellar reputation.
Engaging with satisfied clients post-transaction helps solidify your relationship. It opens the door to future business opportunities and referrals. A thoughtful response can turn a one-time client into a loyal advocate.
A prompt and heartfelt response sets you apart from others who may not prioritize client engagement. It’s an opportunity to showcase the exceptional service clients can expect when working with your title and settlement agency.
Responding to positive feedback strengthens your bonds with current clients, fuels your audience's growth and encourages more comments. It’s a strategic win-win approach to crafting an outstanding reputation within the industry.
So, as you navigate the dynamic realm of real estate, remember the power of gratitude, the impact of engagement and the strength of our FAN network. After all, it’s not just about the transactions; it’s about the relationships we build.
The purchase or sale of a home can be intimidating. We can help you get better acquainted with each step of the closing process to help avoid surprises along the way.
We’ve been talking a lot lately about building affiliated arrangements, and that’s, in large part, because everyone’s doing the same. And we’ve also mentioned that our own Aaron Davis and Mike LaRosa have been asked by quite a few trade associations and publications to discuss the matter at length. It’s humbling! We’d also be lying if we didn’t share that our Closingsuite.com brand has been fielding a ton of inquiries: “Should I build an ABA? How do I get started?”
Although there’s a lot of good information out there, and most of the recent conferences and webinars have devoted a lot of time to the topic, there’s just so much to cover. An hour (or two) just doesn’t get it done. That’s why we’ve introduced a new video series: “Build, Grow and Sell: How to Build the Best Title Ops, Including ABAs, From the Ground Up.”
Naturally, Mike and Aaron will be leading the discussion. And we’ve broken the conversation up into short 10 to 15 minute subtopics. Our hope is to cover a wide range of questions and subject matter - related to building title operations – so that we can cover the things you want to hear about.
While much ABA related content sticks to the compliance elements, which are necessary, we’re going to try to dive more into the operational aspects. What will my costs look like? With whom should I partner?
Yes, we’ll also handle some compliance topics as well. And we may bring some familiar guests in along the way, too. But we think the subject of building ABAs is too broad for a one hour webinar. Hopefully, you’ll find this to be a useful resource as we develop it.
Oh, and, by the way…while “Affiliated Arrangements” might have been the phrase that caught your attention, Mike and Aaron feel very strongly that ABAs are NOT the only way a REALTOR or lender or builder can capture title revenue. Nor are ABAs the only ways title agencies seeking to grow geographic footprint can enter new markets without building a brick-and-mortar operation on their own. In fact, they spend a fair amount of time showing clients other, more profitable and sustainable options that are anything but affiliated arrangements. That’s the stuff we’ll try to cover on “Build, Grow and Sell.”
Our first three installments can be found here, here and here!
And if you have a question or topic for us, don’t hesitate. Reach out and let us know. You never know. You could well find yourself joining us as a guest panelists one of these days, too!
Mergers, acquisitions, joint ventures and other varieties of partnership are all great options for growing your business and are particularly effective ways for title insurance agencies to expand their opportunities into new regions and specialties.
Often, when an agent decides to pursue one of these pathways, the first thing they look at is the spreadsheet. What could this mean in terms of new income? Will it increase costs or decrease costs due to shared resources? What will the upfront costs look like in terms of combining two entities?
The one consideration that often falls to the bottom of the list is the challenge of combining two distinct cultures when bringing the companies together to forge a new entity.
In the first bright glow of falling in love with the idea of merger, acquisition or joint venture, one might convince oneself that you and the other business owner want the exact same outcome and in fact it might feel that way in the initial euphoria of putting the deal together.
It’s like the early days of an engagement when two people raised in drastically different cultures, with opposing religious views and burdened by wildly different upbringings may believe that in spite their disparate realities they somehow will be on the same page about how to keep the house clean, raise children and handle money.
Spreadsheets are great, but they are not people. Ensuring you are on the same page when it comes to culture involves a lot of dialogue, which means sharing your truth, listening intently to other views, and coming to terms with where you intend to take this new venture.
Because in truth, culture is complicated.
Culture can be as simple as dress code (jeans or suits) and adherence to rules and norms (showing up on time and how we treat one another) and as complex as shared values and vision.
Make cultural alignment a priority from the outset and commit to putting in the time to explore each company’s culture. This must begin with a frank conversation between the owners and extend deep into each company, whether that means getting on site to view operations, conducting employee surveys or meeting with each other’s top managers.
This whole process requires a tremendous commitment to being open and frank, as well as listening and observing. Every company has its strengths and its challenges. Being candid about how each of you approach management, planning, communication and a plethora of other topics can help you create a much stronger culture than either of you may have had on your own.
After gathering information from these efforts, put pen to paper to craft a statement or outline of what characteristics you feel are important in this new shared culture. This is critical. If you are not on the same page from the beginning, you can bet your employees will struggle with a disjointed culture that does not have a clear set of parameters and goals for growing the company in the future.
Communicating the vision of the new combined venture is critical to its ultimate success. In addition, inviting employees from both sides of the table to participate in the development of the particulars that make up the vision can ensure they are invested in the outcome. This may feel like “your” company, but if your employees don’t feel like it is “their” company, too, you will never achieve the kind of cohesive teamwork it takes to build a really great company.
The #1 rule of blending two company cultures into a new venture is, “Don’t do nothing.” Don’t think you can successfully steamroll your way into a merger, acquisition or joint venture and everyone on both sides will happily fall into line. Just as you are judicious in investigating the financial and technological particulars on both sides, be equally judicious in discussing, defining and implementing a shared culture.
At FAN, we can offer additional capabilities that will strength your M&A or joint venture efforts. Call us today to learn the many ways we can assist you in building a stronger agency for the future.
Valued Client,
We’ve seen some confusion recently with regards to the requirements of Florida’s new Conveyances to Foreign Entities Act, which took effect on July 1, 2023. Foreign principals from “foreign countries of concern” (The People’s Republic of China, Russian Federation, Islamic Republic of Iran, Democratic People’s Republic of Korea, Republic of Cuba, Venezuelan regime of Nicolas Maduro, Syrian Arab Republic) are now prohibited from owning or acquiring any agricultural land or real property on or within 10 miles of any institution or “critical infrastructure” facility anywhere in Florida.
We’ve been fielding questions regarding the now-required Affidavit of Non-Applicability of Restriction on Foreign Ownership – Natural Person(s) and the Affidavit of Non-Applicability of Restriction on Foreign Ownership – Entity. Specifically, who needs to produce the documents and who needs to sign them? We are attaching copies of both for your convenience. Several of our underwriting partners are requiring all buyers to sign both documents at every closing.
We would be delighted to discuss these new requirements as we understand them at the present time, but since the law is so new we do not have any solid information on how it will be applied or enforced in the times to come except as contained in the attached notices. We will not, unfortunately, be able to advise individual buyers on their specific situations other than requiring that they sign and comply with the notices attached to this bulletin. We do, however, also strongly advise that foreign buyers that are citizens of one of the subject countries speak with independent legal counsel in Florida before entering into a contract to purchase real estate in Florida because the law may impact their ability to purchase the property and that inability may result in a breach of the purchase and sale agreement.
We understand that this is new to everyone in our industry. With this bulletin, we are hoping that it helps provide some guidelines to the new process. Please note, we are unable to guide you, or your client, on whether they should enter a contract to purchase. If you have questions or would like to discuss the statute in greater detail, we are always happy to hear from you to try and help as much as we can. Simply give us a call or email us, and we’ll set a time to discuss.
Regards,
Florida Agency Network
Bulletin PDF Notice to Buyer PDF Affidavit of Compliance PDF
FLTA Notice on Affidavit(s) for Interests of Foreign Countries
Your client is looking forward to owning a home without the hassle of lawn care, and you found a new condo they’re dying to move into. The Condominium Association handed over a thick stack of papers that covered rules and regulations. Maybe your clients just skimmed through them, but it’s time to look closer.
Understanding rights and responsibilities before signing the dotted line is essential for clients to enter their homes with peace of mind. Condo association agreements cover…
Condo associations have many powers spelled out in this paperwork, but they are not unlimited. Knowing their limits is crucial, so knowing condo owner rights is critical. (Check out this condo owner’s dilemma.)
So before closing on condos, encourage clients to read the association agreement thoroughly so they can live happily ever after in their beautiful new home!
The United States' largest generation, Millennials aged 27-41, is a diverse group with various needs and desires. One thing most of them have in common…they're looking to buy their first home. The median age of first-time home buyers in 2022 was 36, right in the middle of the Millennial pack. To sell a home this year, you must understand and connect with them through marketing efforts. Realtors are using time-tested tactics to speak to these new homebuyers, so we want to give you some tips on using them too.
Marketers have used Dale Carnegie's strategies for over 100 years because they work. To target Millennial homebuyers, you must try his AICDC sales strategy to reach Millennials and help them close on their dream home. Here are five steps:
Using these steps, you can effectively target Millennials needing your help to find their dream home, but you don’t have to stop at Millennials. While the real estate market will continue to evolve, using these proven strategies will always be vital to reach any demographic you desire.
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