I am asked almost daily if I think Appraising is a Good Career...AND what about the Future of this industry? First let's address what's going on currently.
It's no secret that things are not good in our economy. We are on a major downturn with unprecedented foreclosures, bank closures, and the government takeover of Fannie and Freddie.
In a nutshell we are in a great time of change.
If this gets you down just remember...
Where there is great change there is great opportunity.
That's a fact.
For example...there a many real estate investors who are picking up properties for pennies on the dollar. In fact, there are $150,000 properties being optioned for $3,000 in some areas. In able to be someone who thrives in times like these you have to get out of the herd mentality. Your strategies have to change. So let's talk about this in the context of appraising...
Do I think that Appraising is a Good Career?
My answer is Yes and No.
Let's start with the Negative first...
Appraising is NOT in my opinion a Good Career AT THE MOMENT.
Residential and Commercial work has dramatically slowed down and dried up. In many areas appraisers are trying to live off of 5-10 appraisals a month. Compare this with the 3-10 a day that they were used to and you get the idea.
If you are a Trainee and you are looking to get into the industry now AND make money I would tell you to consider something else. Making a living as a trainee is not an option for most right now. BUT don't discount what is going to happen in the future. You see most people...no matter what industry they are in, fail to look at the coming trends. They haven't trained themselves to prepare for the COMING changes.
This brings us to the Positive...
Appraising will be a GREAT career once again when our economy recovers.
With the new regulations making it harder for one to become an appraiser AND the massive number of appraisers leaving the industry...you can imagine that there will be once again, more work than appraisers can handle.
It's just common sense.
Real Estate has always been and always will be cyclical. We've had crises before and recovered and we will again. It's true that we haven't seen a crisis on this scale but all that means is that it will take longer to recover...but we will recover unless we have a complete global disaster.
So here is my advice for any trainee looking to get into this industry...
Appraising takes time to learn properly. The old way of learning appraisals and getting into the industry is gone. The qualifications are harder and there are fewer Supervisors. If you are serious about becoming an appraiser you need to shift your focus to set yourself up for 1-2 (possibly 3) years down the road when the market recovers. That means learning the job correctly now. You need to set yourself up as an expert.
Due to the changes I have had to change the focus of my company. There aren't nearly the number of Trainees as there was 1 1/2 years ago. Instead of training a large number of Trainees we now concentrate on a few trainees who are serious and have purchased training and contracts with our Supervisors. The contracts insure that they will have a Supervisor to sign for their hours and the training insures that they know what they are doing.
Remember a Supervisor can only have 3 trainees at a time. So they want the best. I train them and when they are ready they start building their clients and their business knowing they have a guaranteed Signer/Supervisor.
It's true that few of them are making money now with appraising but that is realistic. The days of learning the craft and getting paid for it are long gone.
Our trainees are setting themselves up for the coming changes and that is what every serious trainee needs to do. It's like going to night school. You have to have your regular jobs to support yourself during the day and put the time in to prepare yourself for a future career change at night. It's not easy but it's worth it. Get our package and start learning now. Don't just sit around and hope things will change.
If you are serious about appraising then you have to take a serious realistic approach to set up your future. Get your knowledge now while the market is down. Do what you have to, to pay your bills now but start in a positive direction for your future. If you wait for the market to come back just know that there are going to be very few Supervisors out there willing to sign for you. Be prepared to pay for their services just like paying a college for knowledge. It's a business...your business. and in business everything is negotiable.
On a last note...there are ways to make great money at appraising right now but few are taking advantage.
Appraising is a Great career but to last you have to be able to diversify in the slow times. Do foreclosures, FHA, and estate work. Start a business using appraisals to help home owners avoid foreclosures. Partner with a interior designer of high end homes and do an appraisal to show them the before and after market value of their homes as part of the service. Use your creativity to diversify.
Get out of the herd mentality, prepare for your future and there is nothing that you can't do!
Ed
Wednesday, September 10, 2008
Wednesday, March 19, 2008
New Changes...Disaster or Opportunity?
I've been receiving a lot of inquiries as to where I think the industry is headed and how trainees fit into the picture. Indeed it is more difficult for trainees to make it. The requirements are harder and there are fewer Supervisors now more than ever due to the new regulations. Not only that...they are changing the way that appraisers are going to get jobs. Although it is still unclear as to how this will unfold it is evident that the loan officer/broker relationship to appraisers is going to change. As an appraiser I think this will definitely help with the pressure and ultimately will improve the industry. As a business owner...I am waiting to see how they plan on handing out appraisal jobs.
This country is founded on ingenuity and entrepreneurship. Regulating the amount of business an appraisal firm can get can be disastrous for some and advantageous for others. Let me explain...Because I have an extensive background in sales/marketing/negotiation and business, I have enjoyed a rich client base and ultimately a successful appraisal business. Of course I did good work but more importantly I knew How to get and keep my clients. Most appraisers think that it's too difficult to balance the ethics of this industry and be successful. I constantly hear appraisers (no matter what the market is doing) complain that they lose business to shady appraisers who 'hit' values. How are they suppose to compete is their mantra.
To me...the fact that they are losing (or have lost) business to unethical appraisers is not because the shady appraiser will commit fraud but because they themselves haven't had adequate training in negotiation and lack the mastery of social dynamics and language so they can control their clients' frames. Granted it is a learned skill but is well worth it. Personally...it took me quite some time to do this and I lost a lot of clients in the beginning. But, once I became proficient at it...I rarely lost a client AND I never had to cut corners or inflate values.
Most appraisers aren't even aware of NLP or some of the other business tools that are out there to help...so for these individuals I think the New industry model they are currently putting together is going to help them. They won't have to worry about getting phone calls from LOs/Brokers or Lenders pressuring them or questioning their values.
For appraisers such as myself...this is not a problem. The problem lies in the fact that I may not be able to give the superior service that I can through contact with my clients. And on top of that there is the question of what type of contact 'can' we have with the clients. Don't get me wrong...the jury is still out on what they are planning on doing and I firmly believe that no matter what transpires all one needs to do is adapt their business to the new system and there will be something advantageous with it.
The reality for many appraisers is that if they don't possess or take the steps to acquire the ability to build new income streams and to diversify their appraisal businesses...there will be a cap on what they can make.
Regulating how jobs are handed out sounds very communist to me. Images of standing in a bread line come to mind. Having jobs handed out on a rotating roster is better than the first come first to get the job method. Still...this business is cyclical and waiting around for a job (or better yet a handout) isn't smart business.
The 3 trainee rule is another example of faulty logic. Try telling a lender that they can't have any more than 3 employees. It's counter-intuitive. They needed to implement better standards for training, education, and inspecting instead of limiting the number of trainees. Increasing the required education and requiring a degree doesn't cut it. There are proven training and learning methods that make the 'old' school way of learning obsolete. Take a look at the military. They can download a whole set of skills and transform a persons thinking in 16 weeks not 2 or 4 additional years. I can learn more from mentors than I ever could taking another statistics class. I'm not knocking education but it is not the only solution.
The secret of the military is in their method and their method is through doing and drilling until they get it right not reading and listening to lectures until you fall of sleep. Studies have proven that reading, taking tests, and listening to lectures is the worst way to learn. Who would learn the skill of riding a bike faster...someone who watches 1,000 videos and lectures on how to do it or someone who gets on the bike on day 1?
While I'm at it. What's with the reports? With so much talk of appraisal fraud how come we still do appraisals that have 6 photos on them? I know many of you use more and that's great!...But we're now in the information age. How about Video Appraisals? If a picture is worth 10,000 words what's a video worth? It's easy for a trainee to miss a photo or not disclose that there is work being done on the property...Video the entire site inside and out including the surrounding areas and comps and you've solved a TREMENDOUS amount of error and fraud. How long does it take to video a property? 10 minutes?
The bottom line is that no matter what happens some people will panic and others will reap the benefits. The difference between the 2 groups will depend on who has the most choices available to them with their businesses and who adapts. The more skills and tools you have the more options you will create for yourself.
The rich get richer no matter what the market is doing. They do because they know how to use the trends that they are presented with.
As far as where trainees fit in with this new industry I will give you this advice...
Don't let yourself get sucked into the negativity. Be realistic but keep your mind open. You must understand a system in order to figure out how to benefit from it but make sure you don't become bound by it. Just because someone says there is no other way doesn't mean there isn't. In other words...even if they limit how appraisals are handed out and how many trainees a Supervisor can have there is a solution. There always is.
Ed
This country is founded on ingenuity and entrepreneurship. Regulating the amount of business an appraisal firm can get can be disastrous for some and advantageous for others. Let me explain...Because I have an extensive background in sales/marketing/negotiation and business, I have enjoyed a rich client base and ultimately a successful appraisal business. Of course I did good work but more importantly I knew How to get and keep my clients. Most appraisers think that it's too difficult to balance the ethics of this industry and be successful. I constantly hear appraisers (no matter what the market is doing) complain that they lose business to shady appraisers who 'hit' values. How are they suppose to compete is their mantra.
To me...the fact that they are losing (or have lost) business to unethical appraisers is not because the shady appraiser will commit fraud but because they themselves haven't had adequate training in negotiation and lack the mastery of social dynamics and language so they can control their clients' frames. Granted it is a learned skill but is well worth it. Personally...it took me quite some time to do this and I lost a lot of clients in the beginning. But, once I became proficient at it...I rarely lost a client AND I never had to cut corners or inflate values.
Most appraisers aren't even aware of NLP or some of the other business tools that are out there to help...so for these individuals I think the New industry model they are currently putting together is going to help them. They won't have to worry about getting phone calls from LOs/Brokers or Lenders pressuring them or questioning their values.
For appraisers such as myself...this is not a problem. The problem lies in the fact that I may not be able to give the superior service that I can through contact with my clients. And on top of that there is the question of what type of contact 'can' we have with the clients. Don't get me wrong...the jury is still out on what they are planning on doing and I firmly believe that no matter what transpires all one needs to do is adapt their business to the new system and there will be something advantageous with it.
The reality for many appraisers is that if they don't possess or take the steps to acquire the ability to build new income streams and to diversify their appraisal businesses...there will be a cap on what they can make.
Regulating how jobs are handed out sounds very communist to me. Images of standing in a bread line come to mind. Having jobs handed out on a rotating roster is better than the first come first to get the job method. Still...this business is cyclical and waiting around for a job (or better yet a handout) isn't smart business.
The 3 trainee rule is another example of faulty logic. Try telling a lender that they can't have any more than 3 employees. It's counter-intuitive. They needed to implement better standards for training, education, and inspecting instead of limiting the number of trainees. Increasing the required education and requiring a degree doesn't cut it. There are proven training and learning methods that make the 'old' school way of learning obsolete. Take a look at the military. They can download a whole set of skills and transform a persons thinking in 16 weeks not 2 or 4 additional years. I can learn more from mentors than I ever could taking another statistics class. I'm not knocking education but it is not the only solution.
The secret of the military is in their method and their method is through doing and drilling until they get it right not reading and listening to lectures until you fall of sleep. Studies have proven that reading, taking tests, and listening to lectures is the worst way to learn. Who would learn the skill of riding a bike faster...someone who watches 1,000 videos and lectures on how to do it or someone who gets on the bike on day 1?
While I'm at it. What's with the reports? With so much talk of appraisal fraud how come we still do appraisals that have 6 photos on them? I know many of you use more and that's great!...But we're now in the information age. How about Video Appraisals? If a picture is worth 10,000 words what's a video worth? It's easy for a trainee to miss a photo or not disclose that there is work being done on the property...Video the entire site inside and out including the surrounding areas and comps and you've solved a TREMENDOUS amount of error and fraud. How long does it take to video a property? 10 minutes?
The bottom line is that no matter what happens some people will panic and others will reap the benefits. The difference between the 2 groups will depend on who has the most choices available to them with their businesses and who adapts. The more skills and tools you have the more options you will create for yourself.
The rich get richer no matter what the market is doing. They do because they know how to use the trends that they are presented with.
As far as where trainees fit in with this new industry I will give you this advice...
Don't let yourself get sucked into the negativity. Be realistic but keep your mind open. You must understand a system in order to figure out how to benefit from it but make sure you don't become bound by it. Just because someone says there is no other way doesn't mean there isn't. In other words...even if they limit how appraisals are handed out and how many trainees a Supervisor can have there is a solution. There always is.
Ed
Thursday, February 21, 2008
Who's the Scam Artist?
The controversy begins...
I have just started advertising on a forum...www.appraiserforum.com. If you haven't gotten on there I suggest you do. It is a great resource for appraisers.
Now...if some of you have read my post back in June (on 'Results') about how I attempted to get on a forum and have conversations about my programs to promote them then let me just make 1 thing clear.
That was a business strategy that did not work and I shared the story with you all to demonstrate how to adapt in the face of adversity.
In the case of http://www.appraiserforum.com/, I pay for my advertising and follow the rules because I've learned from my mistakes. Remember in business...you can Break Rules but many times you have to pay the consequences.
And NO...Appraiser Watch-Dogs...I'm not talking about being an unethical appraiser. One should NEVER knowingly violate USPAP or make up values. I'm talking about an entirely different context so please...don't jump to conclusions.
My intention in the past was to get people to visit my site...plain and simple. So they actually have a shot at this industry. I know I have great products and more useable tools available that can help trainees for real and I'm not going to apologize for that. I'll leave the 'snake oil' to some of 'required' stuff.
The problem is that now I'm labelled as a 'Scam Artist' by some of the uninformed members of the site.
Before I go into a rant...www.appraiserforum.com is very professional and as such I intend to be professional while on it. I hope all of you will too. Read the rules and follow them. The owner is very professional and fair and actually came to my defense. It is the best forum available and is an invaluable tool for appraisers.
Now...let's get into the controversy. A trainee posted on there that she thought AREA48 was a scam and she was 'Targeted' because when she got her license she received a letter from me. My letter is designed to get a response and some people are just so skeptical that when they see my prices they presume it to be a scam. I mean how could anyone provide that much value?
I don't know...ask a University why they charge $35,000 a year. I'm only providing my past 12 years of appraisal/sales knowledge.
So some of the member 'experts' (see previous post) recommended that I be 'checked out' by 'knowledgeable' appraisers...I can't wait.
Anyway...one of our students responded to the post saying he didn't think it was a scam and they all jumped down his throat.
In defense he responded...so they then came to this blog and read my posts to 'check me out'. Let's just say they weren't to pleased at being called 'Old Experts'.
They then read my post from last year on 'Results' and assumed that these trainees were plants.
Well...first of all, give me some credit. If I were going to use that technique the title in the subject line wouldn't be "Is AREA48 a Scam?". That's a negative suggestion to say the least and certainly doesn't help my business.
The point is that without even checking out the rest of my information. The MOST IMPORTANT information...my training products and classes. I've just been labelled and that's it.
First off...let me offer you few who seem to know-it-all...some advice.
When you do an appraisal. You shouldn't derive a conclusion of value without looking at all the available information. Ummmm....That's Appraising 101. If you presume that I am unethical as an appraiser based upon a 'Blog Comment'...ummmm maybe you should repeat your basic education requirements. Assuming can only lead to one thing cause I ain't one...
I tell you what...come to my Wednesday Webinar class and join in. I'm sure with your wealth of knowledge you could enlighten us all!
Unfortuantely...I can't say too many things about such people since it's really a waste of time. The glass is always half-empty with them.
The ironic thing is that I'm labelled as a 'scam artist'. The truth is that the system is the 'scam artist'. I'm not the one portraying that all you have to do is get your Trainee's License and then you can just start working with a Supervisor. I get call after call each day from frustrated Trainees from around the COUNTRY who are fed up. They feel they've been mislead.
They have...and not by me.
If I'm guilty of anything then I'm guilty of calling it like it is. If the 'system' doesn't work...I'll say it. I am guilty of trying to provide a solution by offering REAL training and Supervision so that a new generation of KNOWLEDGEABLE appraisers can be successful too. The public is only protected when appraisers have REAL knowledge.
I really feel bad for the Trainee who thinks I am a scam. She doesn't know yet that more than likely...she wasted her money on her license. She hasn't figured out that there is more to this business then just getting your trainee's license.
All I can say is Good Luck.
And for any appraisers who really have a problem with me. Truly...I invite you to come to my Wednesday night online webinar and share your viewpoints. Call me personally and I'll give you the codes (323-257-3357).
But of course...we expect you to act professional!
I've never claimed to be the most knowledgeable appraiser. I only claim to be the most open!
Ed
I have just started advertising on a forum...www.appraiserforum.com. If you haven't gotten on there I suggest you do. It is a great resource for appraisers.
Now...if some of you have read my post back in June (on 'Results') about how I attempted to get on a forum and have conversations about my programs to promote them then let me just make 1 thing clear.
That was a business strategy that did not work and I shared the story with you all to demonstrate how to adapt in the face of adversity.
In the case of http://www.appraiserforum.com/, I pay for my advertising and follow the rules because I've learned from my mistakes. Remember in business...you can Break Rules but many times you have to pay the consequences.
And NO...Appraiser Watch-Dogs...I'm not talking about being an unethical appraiser. One should NEVER knowingly violate USPAP or make up values. I'm talking about an entirely different context so please...don't jump to conclusions.
My intention in the past was to get people to visit my site...plain and simple. So they actually have a shot at this industry. I know I have great products and more useable tools available that can help trainees for real and I'm not going to apologize for that. I'll leave the 'snake oil' to some of 'required' stuff.
The problem is that now I'm labelled as a 'Scam Artist' by some of the uninformed members of the site.
Before I go into a rant...www.appraiserforum.com is very professional and as such I intend to be professional while on it. I hope all of you will too. Read the rules and follow them. The owner is very professional and fair and actually came to my defense. It is the best forum available and is an invaluable tool for appraisers.
Now...let's get into the controversy. A trainee posted on there that she thought AREA48 was a scam and she was 'Targeted' because when she got her license she received a letter from me. My letter is designed to get a response and some people are just so skeptical that when they see my prices they presume it to be a scam. I mean how could anyone provide that much value?
I don't know...ask a University why they charge $35,000 a year. I'm only providing my past 12 years of appraisal/sales knowledge.
So some of the member 'experts' (see previous post) recommended that I be 'checked out' by 'knowledgeable' appraisers...I can't wait.
Anyway...one of our students responded to the post saying he didn't think it was a scam and they all jumped down his throat.
In defense he responded...so they then came to this blog and read my posts to 'check me out'. Let's just say they weren't to pleased at being called 'Old Experts'.
They then read my post from last year on 'Results' and assumed that these trainees were plants.
Well...first of all, give me some credit. If I were going to use that technique the title in the subject line wouldn't be "Is AREA48 a Scam?". That's a negative suggestion to say the least and certainly doesn't help my business.
The point is that without even checking out the rest of my information. The MOST IMPORTANT information...my training products and classes. I've just been labelled and that's it.
First off...let me offer you few who seem to know-it-all...some advice.
When you do an appraisal. You shouldn't derive a conclusion of value without looking at all the available information. Ummmm....That's Appraising 101. If you presume that I am unethical as an appraiser based upon a 'Blog Comment'...ummmm maybe you should repeat your basic education requirements. Assuming can only lead to one thing cause I ain't one...
I tell you what...come to my Wednesday Webinar class and join in. I'm sure with your wealth of knowledge you could enlighten us all!
Unfortuantely...I can't say too many things about such people since it's really a waste of time. The glass is always half-empty with them.
The ironic thing is that I'm labelled as a 'scam artist'. The truth is that the system is the 'scam artist'. I'm not the one portraying that all you have to do is get your Trainee's License and then you can just start working with a Supervisor. I get call after call each day from frustrated Trainees from around the COUNTRY who are fed up. They feel they've been mislead.
They have...and not by me.
If I'm guilty of anything then I'm guilty of calling it like it is. If the 'system' doesn't work...I'll say it. I am guilty of trying to provide a solution by offering REAL training and Supervision so that a new generation of KNOWLEDGEABLE appraisers can be successful too. The public is only protected when appraisers have REAL knowledge.
I really feel bad for the Trainee who thinks I am a scam. She doesn't know yet that more than likely...she wasted her money on her license. She hasn't figured out that there is more to this business then just getting your trainee's license.
All I can say is Good Luck.
And for any appraisers who really have a problem with me. Truly...I invite you to come to my Wednesday night online webinar and share your viewpoints. Call me personally and I'll give you the codes (323-257-3357).
But of course...we expect you to act professional!
I've never claimed to be the most knowledgeable appraiser. I only claim to be the most open!
Ed
Thursday, February 7, 2008
Old 'Experts' vs. New 'Everyday Joe'
Okay...
Let's talk about the subject of these so-called 'Expert' Appraisers with all the designations and Financial Degrees up the yin-yang. As many of you know I am a lifelong martial artist with over 30 years experience in the martial arts. Now...as far as my knowledge of the 'fighting arts' is concerned, you could say I have a PhD. But what does that really mean and how does it relate to appraising? We'll cover that at the end...
I know most of you probably don't follow martial arts that much...but for me it's a passion. Back in the day there was a misconception that if you had a black belt, that meant you were deadly. Well, about 10 years or so ago there was this thing called the Ultimate Fighting Championship where they decided to put the top black belts in their respective styles to the test to find out which style was the best and which black belts were the 'deadliest'. They would put the men (and women later on) in a cage and with limited rules...let them fight. Not pretty...but it was an effective experiment.
To make a long story short...what they found out was that most of what these 'black belts' had learned was ineffective and USELESS. In fact...after a short time we saw that people with 30 years of experience would often get beat by someone with as little as 6 months of training. What the 'f was going on here? Shouldn't a lifelong martial arts 'killer' beat an 'Everyday Joe'? People were baffled...
Actually...what was happening was quite elementary. You see...with the implementation of actual fighting, the people who began training after the fighting was implemented...began training using what worked in the cage instead of what black belts were 'told' what worked. They saw what was effective in the cage and only trained with that while the 'Old Killers' kept training in their old ways...ie, kicking and punching in the air making 'killer' sounds and acrobatic moves but never really bridging the gap of exercise versus reality.
Eventually, the pragmatic pugilists...the 'Everyday Joe's' approach took over. Now the sport is filled with a new breed of extreme athlete scholars who have left the 'Old Killers' in the dust licking their wounds. This new breed had built their training on a foundation of 'Realism' versus 'Conjecture' and has since elevated the sport to a new level.
So...how does this relate to Appraising? What you are going to find out there are quite a few 'know-it-all' AGs and ARs who don't want to give you the time of day because you don't have the qualifications or experience that they do. They are too important...and arrogant to show you what they know. They believe they've worked too long and hard to get their degrees and designations to take time out of their busy schedule to help you...and since you don't have a degree, you couldn't possibly understand what they know anyway so why should they bother.
The truth that they don't share with you is that they had to learn the appraisal business world from scratch...and that ain't taught in school. It's taught in the 'Cage' of the real working world. And the truth is that one doesn't need a financial degree to do appraisals...one just needs to do good work/appraisals. And yes...you do need knowledge but it has to be functional knowledge.
Sure it helps to have extra schooling...but building your foundation from concepts that aren't used in the 'real-world' of appraising is the long road to success. You should concentrate on building your business with 'What Works' and not with what you need to gain another notch in the 'Inner Appraiser Social Ladder'.
The point of all this is that there 'IS' a difference between what 'WORKS' in reality and what's there for ego. 6 Months of Realistic Experience and Training can be worth 30 Years of 'Supposed Mastery' and designations. Build your foundation on 'What Is' versus what the consensus 'Says' what is. You don't need a PhD or Financial Degree to be an appraiser. You need Good, Functional, Realistic Training...period.
See you all in the 'Cage' Soon!
Ed
Let's talk about the subject of these so-called 'Expert' Appraisers with all the designations and Financial Degrees up the yin-yang. As many of you know I am a lifelong martial artist with over 30 years experience in the martial arts. Now...as far as my knowledge of the 'fighting arts' is concerned, you could say I have a PhD. But what does that really mean and how does it relate to appraising? We'll cover that at the end...
I know most of you probably don't follow martial arts that much...but for me it's a passion. Back in the day there was a misconception that if you had a black belt, that meant you were deadly. Well, about 10 years or so ago there was this thing called the Ultimate Fighting Championship where they decided to put the top black belts in their respective styles to the test to find out which style was the best and which black belts were the 'deadliest'. They would put the men (and women later on) in a cage and with limited rules...let them fight. Not pretty...but it was an effective experiment.
To make a long story short...what they found out was that most of what these 'black belts' had learned was ineffective and USELESS. In fact...after a short time we saw that people with 30 years of experience would often get beat by someone with as little as 6 months of training. What the 'f was going on here? Shouldn't a lifelong martial arts 'killer' beat an 'Everyday Joe'? People were baffled...
Actually...what was happening was quite elementary. You see...with the implementation of actual fighting, the people who began training after the fighting was implemented...began training using what worked in the cage instead of what black belts were 'told' what worked. They saw what was effective in the cage and only trained with that while the 'Old Killers' kept training in their old ways...ie, kicking and punching in the air making 'killer' sounds and acrobatic moves but never really bridging the gap of exercise versus reality.
Eventually, the pragmatic pugilists...the 'Everyday Joe's' approach took over. Now the sport is filled with a new breed of extreme athlete scholars who have left the 'Old Killers' in the dust licking their wounds. This new breed had built their training on a foundation of 'Realism' versus 'Conjecture' and has since elevated the sport to a new level.
So...how does this relate to Appraising? What you are going to find out there are quite a few 'know-it-all' AGs and ARs who don't want to give you the time of day because you don't have the qualifications or experience that they do. They are too important...and arrogant to show you what they know. They believe they've worked too long and hard to get their degrees and designations to take time out of their busy schedule to help you...and since you don't have a degree, you couldn't possibly understand what they know anyway so why should they bother.
The truth that they don't share with you is that they had to learn the appraisal business world from scratch...and that ain't taught in school. It's taught in the 'Cage' of the real working world. And the truth is that one doesn't need a financial degree to do appraisals...one just needs to do good work/appraisals. And yes...you do need knowledge but it has to be functional knowledge.
Sure it helps to have extra schooling...but building your foundation from concepts that aren't used in the 'real-world' of appraising is the long road to success. You should concentrate on building your business with 'What Works' and not with what you need to gain another notch in the 'Inner Appraiser Social Ladder'.
The point of all this is that there 'IS' a difference between what 'WORKS' in reality and what's there for ego. 6 Months of Realistic Experience and Training can be worth 30 Years of 'Supposed Mastery' and designations. Build your foundation on 'What Is' versus what the consensus 'Says' what is. You don't need a PhD or Financial Degree to be an appraiser. You need Good, Functional, Realistic Training...period.
See you all in the 'Cage' Soon!
Ed
Thursday, January 10, 2008
Perspective
It's that time of year to restart, renew, and recharge. I wanted to comment on a few things for the beginning of this new year. For those of you who have been to some of my workshops...you know that I am big on the mind. I truly believe that your mindset has everything to do with your success or lack thereof. It's not the market...or the new regulations...or really anything else that keeps you from really getting what you want. It's your mental state.
I recently spoke with my old Supervisor. We haven't talked in quite a few months and so we were catching up. I have been slowly revising my business so that I can dedicate 100% to training and teaching trainees and haven't really been doing very many appraisals...so I asked him how things were going.
Now before I tell you what he said...let me go back a bit. I had just spoken with several appraisers who had nothing to do but complain about the market and the lack of business. A couple were even considering getting out of the industry altogether. Now...I've said before that I've seen the market slow down like this a couple of times before but I have to admit this is a unique situation and even I have been having my doubts. Anyway...back to the story.
Right before I spoke with my old Supervisor...I spoke with his office manager. I asked her how things were going and she said that they were really busy and was complaining how everyone wanted everything yesterday. She then put me on the phone with my old Supervisor...so I asked him about it.
To my surprise...he was actually surprised that things were slow for most people. He said that he was busy as ever. I asked him if he had a copy of any foreclosure reports so I could teach everyone how to do one and he said that he would have to dig one up because he hadn't done one in a really long time. I thought for sure that he was busy doing foreclosure work but he hadn't done any in a year or two. Now that was surprising! He was still doing the same work...purchases and refis that he has always done.
We talked a little about what was going on in the market and the industry as a whole and to be honest...I was the one telling him what was going on. I don't think it wasn't that he really didn't know what was going on because he said it didn't really affect him...so he didn't dwell on it.
I recently spoke with my old Supervisor. We haven't talked in quite a few months and so we were catching up. I have been slowly revising my business so that I can dedicate 100% to training and teaching trainees and haven't really been doing very many appraisals...so I asked him how things were going.
Now before I tell you what he said...let me go back a bit. I had just spoken with several appraisers who had nothing to do but complain about the market and the lack of business. A couple were even considering getting out of the industry altogether. Now...I've said before that I've seen the market slow down like this a couple of times before but I have to admit this is a unique situation and even I have been having my doubts. Anyway...back to the story.
Right before I spoke with my old Supervisor...I spoke with his office manager. I asked her how things were going and she said that they were really busy and was complaining how everyone wanted everything yesterday. She then put me on the phone with my old Supervisor...so I asked him about it.
To my surprise...he was actually surprised that things were slow for most people. He said that he was busy as ever. I asked him if he had a copy of any foreclosure reports so I could teach everyone how to do one and he said that he would have to dig one up because he hadn't done one in a really long time. I thought for sure that he was busy doing foreclosure work but he hadn't done any in a year or two. Now that was surprising! He was still doing the same work...purchases and refis that he has always done.
We talked a little about what was going on in the market and the industry as a whole and to be honest...I was the one telling him what was going on. I don't think it wasn't that he really didn't know what was going on because he said it didn't really affect him...so he didn't dwell on it.
I tend to think that because he didn't dwell on it...it didn't affect him!
We then went on to talk about how he had seen this happen in the late 80's early 90's and how in the Spring we will see a lot of purchases happening since savvy investors buy low. Another thing to note is that he invests in property and was actually excited about where the market was going because that's when you can get great deals.
I guess my whole point to the story is this. What you focus on expands. My old Supervisor had seen this happen before and was mentally prepared. He knows that it's nothing to panic over and to him...it's just business as usual. Think about that...he holds the belief that it's business as usual and that's what he gets. He doesn't even have to do foreclosure work!
As far as getting into the business...now is the time to train and get your knowledge. The market will come back and because too many people like to focus on fear and the negative...they will leave the industry. Nothing could be better for you.
Focus on acquiring your knowledge and building your business now not the lack of it and you'll be surprised how anyone could have ever left over such a minor thing.
We then went on to talk about how he had seen this happen in the late 80's early 90's and how in the Spring we will see a lot of purchases happening since savvy investors buy low. Another thing to note is that he invests in property and was actually excited about where the market was going because that's when you can get great deals.
I guess my whole point to the story is this. What you focus on expands. My old Supervisor had seen this happen before and was mentally prepared. He knows that it's nothing to panic over and to him...it's just business as usual. Think about that...he holds the belief that it's business as usual and that's what he gets. He doesn't even have to do foreclosure work!
As far as getting into the business...now is the time to train and get your knowledge. The market will come back and because too many people like to focus on fear and the negative...they will leave the industry. Nothing could be better for you.
Focus on acquiring your knowledge and building your business now not the lack of it and you'll be surprised how anyone could have ever left over such a minor thing.
Thursday, September 13, 2007
Technological Frustrations
Although I have experienced much frustration over the past few months (both personal and professional)...I have to say that I have learned some very important lessons. First...let me share with you what is happening with our company.
We will be doing our first "Live" training workshop on September 29th at the Sheraton in Pasadena. I am very excited about this as we will finally be adding a more personal touch to everything. I think it's important for you all to be able to put a face to the name...This is the first training of many to come so I hope you all can make it. Now onto the rest of what has been happening...
The frustration has come once again in the form of technology. I have had the second computer 'crash' on me resulting in 1000's of $'s of information and data lost to the unrelenting cyber-gods. I can't even begin to calculate what the odds are of having a 2nd computer crash like this...especially a fairly new one. Although the first one didn't technically crash...Information 'mysteriously disappeared from my desk top and 'certain' folders. It does do a little to whet my conspiracy minded appetite (since I have also been coincidentally been doing some research for a book within that realm...to be discussed later).
Nonetheless...there are very important lessons here to be heeded. As appraisers...you all should know that you are responsible to keep your work files for a minimum of 5 years. Had I not been paranoid about the OREA coming out of my closet at night...the losses I experienced could have been much more costly. Luckily...I store all my job files offline through WinTotal's Vault. This has been of tremendous value not only in keeping my jobs/work files...but in giving me some peace of mind.
The 'crashing' of a computer is similar to a business experiencing a fire and having many of their records wiped out. I can't stress enough how important it is to have multiple back-ups of your data. I think that every appraiser should have offline 3rd party storage...and 2 external hard drives with ALL of your data (professional and personal) stored.
You should use your 3rd party storage for the following: All jobs...frequently used documents (try Google Docs)...and other important but not critically sensitive files. What I mean by critically sensitive files are files that contain sensitive personal data (ss#, credit card #'s, etc.). Keep those things for your external hard drives. Not to worry...we only store those offline and nothing of a sensitive nature was lost.
Your external hard drives should contain everything from the 3rd party storage, your sensitive data, and your entire hard drives. I recommend that you make back ups of your hard drives once a day on both external drives (I as of now am implementing this into my systems).
You should keep one hard drive near your computer for convenience...but not connected to it to avoid anyone hacking it (Trust me...if it's hooked up, they can get to it). The second drive you should keep locked in a FIRE SAFE all day except when you copy your hard drive once a day...And you do this in case of a fire, big brother, or that pesky Bin Laden character. That way...if you lose everything due to some unforeseen circumstance...you won't be left copying and pasting ASHES together.
So...in closing, hopefully my lesson will help save some of you a tremendous amount of time, money, and heart ache.
We will be doing our first "Live" training workshop on September 29th at the Sheraton in Pasadena. I am very excited about this as we will finally be adding a more personal touch to everything. I think it's important for you all to be able to put a face to the name...This is the first training of many to come so I hope you all can make it. Now onto the rest of what has been happening...
The frustration has come once again in the form of technology. I have had the second computer 'crash' on me resulting in 1000's of $'s of information and data lost to the unrelenting cyber-gods. I can't even begin to calculate what the odds are of having a 2nd computer crash like this...especially a fairly new one. Although the first one didn't technically crash...Information 'mysteriously disappeared from my desk top and 'certain' folders. It does do a little to whet my conspiracy minded appetite (since I have also been coincidentally been doing some research for a book within that realm...to be discussed later).
Nonetheless...there are very important lessons here to be heeded. As appraisers...you all should know that you are responsible to keep your work files for a minimum of 5 years. Had I not been paranoid about the OREA coming out of my closet at night...the losses I experienced could have been much more costly. Luckily...I store all my job files offline through WinTotal's Vault. This has been of tremendous value not only in keeping my jobs/work files...but in giving me some peace of mind.
The 'crashing' of a computer is similar to a business experiencing a fire and having many of their records wiped out. I can't stress enough how important it is to have multiple back-ups of your data. I think that every appraiser should have offline 3rd party storage...and 2 external hard drives with ALL of your data (professional and personal) stored.
You should use your 3rd party storage for the following: All jobs...frequently used documents (try Google Docs)...and other important but not critically sensitive files. What I mean by critically sensitive files are files that contain sensitive personal data (ss#, credit card #'s, etc.). Keep those things for your external hard drives. Not to worry...we only store those offline and nothing of a sensitive nature was lost.
Your external hard drives should contain everything from the 3rd party storage, your sensitive data, and your entire hard drives. I recommend that you make back ups of your hard drives once a day on both external drives (I as of now am implementing this into my systems).
You should keep one hard drive near your computer for convenience...but not connected to it to avoid anyone hacking it (Trust me...if it's hooked up, they can get to it). The second drive you should keep locked in a FIRE SAFE all day except when you copy your hard drive once a day...And you do this in case of a fire, big brother, or that pesky Bin Laden character. That way...if you lose everything due to some unforeseen circumstance...you won't be left copying and pasting ASHES together.
So...in closing, hopefully my lesson will help save some of you a tremendous amount of time, money, and heart ache.
Monday, July 16, 2007
Providing Solutions
Everyone...
It's been a very exciting week as I have many new developments within our company and our community. First, I have been re-contacted by Allied Business Schools as they want to recommend our site to all of their students. It seems that they have had an overwhelming number of requests from new trainees who want to learn how appraising is actually done and they are looking for some REALISTIC training programs.
Allied is one of the top education providers that provides their students the required education and USPAP classes and prepares them to take their state required test. I use Allied every time I have to upgrade my license or take continuing education classes. I believe they offer a 100% money-back guarantee if you don't pass the state test which makes them a great choice. I highly recommend Allied for all of your education needs.
They are also national which means that once we start working with them we will be dramatically increasing our membership at a rapid pace...and that means that you guys (and gals) will have a much larger network to pool your resources.
I have also talked to them about getting a Supervisor Placement Program in place which they are considering. They have a large list of appraisers whom have gone through them and are working on a way to contact them to get you guys more options. The rep that I am working with is putting a proposal together for upper management so I will keep you posted.
I have decided that I will be adding a live Q & A session once a week to go along with the online class. This will start in September as well as monthly Live Workshops and Seminars. My vision is to provide you guys with 100% of the tools that you will need on a day to day basis building and running your appraisal businesses. For those of you who have been with me since the beginning...I want to thank you for your continued support. We are building much momentum and I am looking forward to really outdoing everyone's expectations...including my own.
Thank You again...
Ed
It's been a very exciting week as I have many new developments within our company and our community. First, I have been re-contacted by Allied Business Schools as they want to recommend our site to all of their students. It seems that they have had an overwhelming number of requests from new trainees who want to learn how appraising is actually done and they are looking for some REALISTIC training programs.
Allied is one of the top education providers that provides their students the required education and USPAP classes and prepares them to take their state required test. I use Allied every time I have to upgrade my license or take continuing education classes. I believe they offer a 100% money-back guarantee if you don't pass the state test which makes them a great choice. I highly recommend Allied for all of your education needs.
They are also national which means that once we start working with them we will be dramatically increasing our membership at a rapid pace...and that means that you guys (and gals) will have a much larger network to pool your resources.
I have also talked to them about getting a Supervisor Placement Program in place which they are considering. They have a large list of appraisers whom have gone through them and are working on a way to contact them to get you guys more options. The rep that I am working with is putting a proposal together for upper management so I will keep you posted.
I have decided that I will be adding a live Q & A session once a week to go along with the online class. This will start in September as well as monthly Live Workshops and Seminars. My vision is to provide you guys with 100% of the tools that you will need on a day to day basis building and running your appraisal businesses. For those of you who have been with me since the beginning...I want to thank you for your continued support. We are building much momentum and I am looking forward to really outdoing everyone's expectations...including my own.
Thank You again...
Ed
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