Renting-to-own is the perfect strategy for some home buyers and sellers. What’s essential is creating a good contract that covers both parties’ needs.

Renting-to-own a home works like leasing a car: renters pay a set amount per month and at the end of a given time period -- usually three years -- they have the option to purchase the house.

For sellers, advantages include locking in an established sales price, having responsible renters, and being able to move on with their lives and potentially buy a new home. For buyers, advantages include a trial period on the house and community before fully committing to buy, and having time to solidify credits scores and save toward a home purchase.

Renting-to-own also can present pitfalls for both parties, which is why it’s important for clients to involve a REALTOR and a real estate attorney. Agreements should cover all bases, including who’s responsible for home repairs, and next steps if there’s a problem with the existing mortgage.

If an agreement effectively addresses these and other points, consider renting-to-own as a great option. 

When I calmed down my ADD and focused on the task at hand, my interview with Abe proved to be enlightening.

Abe has been a licensed Illinois REALTOR® since 2003 and is also licensed to practice in Indiana and California. Since that time he has listed 1,530 properties and his sales have amounted to more than $150 million. One of the most interesting aspects of his work is that Abe has found a successful strategy for operating in Chicago and California. Imagine creating a powerful business strategy that would also enable you to go to California during a Chicago winter. Since a dream of mine is to do just that, I grabbed a few bits of juicy information on how he has been able to do so. I also got a scoop on how he became Chicago’s REO King. Hopefully you will find his interview as informative and useful as I did!

Me: How did you become so effective in the REO side of the business?

Abe: It was the case of “the right place at the right time.” When I started doing REO listings, it was not such a hot topic as it is today. This allowed me to establish relationships early on; I was able to plant the seed. When the market turned I was the first one in line to get the business. I saw a need for proper REO representation, for which back then there were not many options.

(Greg’s side note: Abe’s approach is to take the road less traveled. Find a niche that you are good at and not many people are focusing on and become the best at it!)

Me: When starting your company Great Street Properties, what were some of the challenges you faced and how did you overcome them?

Abe: As a business owner I sometimes feel like that guy in the circus who is spinning all of those plates at once and you can’t let any of them fall. At the same time as trying to grow my client base I also had to assume the responsibilities of a business owner. I’m responsible for everything, including HR, accounting, marketing, office repair work and hiring. I have always been one to seek advice from mentors. That is what I did; I got together with more established business owners and sought their guidance. I also found mentors to bounce ideas off of. I didn’t know everything there is to know about running a successful business. None of us starting out do. Seek guidance and don’t try to reinvent the wheel. Long hours and hard work are essential.

Me: Your company now has branches in Chicago, Schaumburg, San Diego, Calif., and Highland, Ind. What are your tricks for staying organized and using your time wisely?

Abe: Leverage the right technology, hire the right people and work hard! It is not difficult to be successful; the recipe for success is focus and hard work. I was working 100 hours a week. I came to the office at 6 a.m. because I knew no other REALTORS® would be up at that hour. I can get a lot of work done when other people are sleeping and not calling or e-mailing me. I also divide my hours appropriately for maximum effective output.

Me: For an agent interested in getting into the REO side of the business, what are some key points for creating an effective strategy?

Abe: The REO business is a mature niche now. Experience is critical! It’s always good to put the fundamentals and academia behind it, but nothing beats real-life experience. Work for an REO broker and learn the ropes. Also, be prepared with capital to back your business. Study where the most REO listings are, and where you enjoy spending your time. I have an office out of San Diego not only because there are many REOs but because I enjoy being there. I am more productive if I like where I am working and you will be, too! Simplify and automate as much as possible. Diminish the learning curve so that you can train quickly and get your staff up and running in as little time as possible

Me:  What separates the best from the average in our business?

Grigory Pekarsky, 2011 C.A.R. YPN Chair and Managing Broker/Partner, Vesta Preferred Realty



Interview with Dagmar Sands, FIABCI-USA President

Making money in slower market can be challenging. For over 30 years, I have been both a real estate practitioner and consultant. I know that when the market changes, you need to maximize your business efforts. Even simple steps can make a huge difference in your earnings!

After a recent meeting at the International Real Estate Federation (FIABCI), I asked Dagmar Sands, FIABCI-USA President and CEO of Real Estate International Inc., Atlanta, to share her top strategies for making money in this market. Dagmar recommends that, as the market adjusts, you should first update your business plan. Go back to using some of the basics you used earlier in your career or try some new ones to build your network:   

- Join groups online. Invite new people to learn about what you do! Go to www.meetup.com and start your own group. You can call it “Investors Group of _______” to attract investors you could not contact on your own. Join discussion boards, such as FIABCI’s, and post what you want to share.  

- Use tech tools. Plant seeds today to harvest later. Tell everyone what you do! It's called shameless self-promotion, and it works! Send broadcast e-mails to clients and others. Use blogs and podcasts. Add video and audio programs to your Web site. Hyperlink with other professionals. Add your listings to www.kijiji.com , www.loopnet.com, www.PropertyLine.com,  www.HeartSmartProperties.com and www.Craigslist.com. It’s free and can result in huge exposure! If you have a storefront office, add a plasma TV so that after hours you can display properties from yourself and other professionals.  

- Give speeches about your business at a Chamber of Commerce, consulate office, or local board function.  

- Do more door-to-door calling. Hand-deliver material to clients and prospects. That personal touch makes a difference.

- Create new partnerships. Work with banks and credit unions to help sell their foreclosures. Partner with veteran investors who are investing in China for high-yield returns. Do joint ventures with syndications with developers.

- Read how-to books. Endorse and send books you love to clients and others as gifts. Add a personal note. I endorse the “The World is Flat,” “Never Eat Alone” and Dr. Margot’s books, “Commercial Real Estate Career Education and Resource Guide” and “7 Steps to Find Your Perfect Career.” Most people keep books so it is a great advertisement.

- Write articles or a newsletter of tips on market conditions. Send them to current and past clients and ask for business referrals.

- Attend classes. Use any extra time to take your continuing education credits. Take a course in a new business area that is offered at a conference so you can both learn new information and meet people.

- Start your own local Investor’s Club and hold monthly meetings.

- Attend C.A.R. functions and monthly CREW meetings. They are a perfect way to build your business network and reconnect with members you haven’t seen lately.

- Advertise your unique specialties (i.e., entertainment facilities, international properties). One FIABCI member specializes in clients from Israel. Another uses auctions to create urgency and sell properties for higher amounts.

Dagmar Sands is very successful in the real estate business. She follows the philosophy: Don’t be afraid to be a “purple snowflake.” Try Dagmar’s strategies. You can make a great deal of money in a down market if you stand out, show you are unique and set yourself apart from your competition!  

Dr. Margot Weinstein, CIPS

Dr. Weinstein, CIPS, is CEO of MW Leadership Consultants and a practitioner, consultant, educator/trainer and writer. Contact her at www.drmargotweinstein.com or by e-mail, drmargot@drmargotweinstein.com.



The first step in the short sale process is gathering information. In Illinois you will want to develop a team of professionals that includes an attorney, who will negotiate the short sale, and a Certified Public Accountant, who will review the tax consequences of performing a short sale with the homeowner.

You can download some of the required forms and find others available through your C.A.R. membership. C.A.R. regularly hosts the Accredited Distressed Property Representative certification program. One if its courses, Mastering Short Sale Forms, reviews in detail the forms needed to conduct a successful short sale and adhere to Illinois License Law.

Below is a checklist of the minimum forms needed in the city of Chicago to perform a successful short sale:

Prelisting Forms

       Steps To A Successful Short Sale: http://www.box.com/s/2e2mxtlv8yqnnzl0zl6d

       Dear Seller Letter 2012: http://www.box.com/s/6du1gxqajx9nkgq4fj4x

       Seller Checklist 2012: http://www.box.com/s/zmts8d34g0xo3zz01q8u

       Hardship Letter Example: http://www.box.com/s/8609q8y4eia4cmo9vam5

       Household Budget: http://www.box.com/s/0acdzk2hg03ib1snjq01

       4506 T: http://www.box.com/s/2j5hrqoxsk8diagqbrhr

       982 Reduction of Tax Attribute (Homeowner review with CPA): http://www.box.com/s/i79uc1lxh168212iqmfd

Listing Forms

       Listing Agreement: Permission Needed to Access

       Real Property Disclosure: Permission Needed to Access

       Lead Based Paint Addendum:  Permission Needed to Access

       Radon Disclosure: Permission Needed to Access

       Mold Disclosure: Arms’ Length Transaction Form: http://www.box.com/s/s49g3zkbm476dizr8ifc

       Authorization to Release Information: http://www.box.com/s/rxvg3fv05x18m52h37h3

       AS IS Addendum: http://www.box.com/s/fc8uu8qm2h2cczqalb7f

       Rider 20A: Permission Needed to Access

       Rider 20B:  Permission Needed to Access

       MARS Disclosure: http://www.box.com/s/7n62fvldta4lvmhtox65

       City of Chicago Heating Disclosure: https://accel.peoplesgasdelivery.com/secure/ssl/business/disclosure.aspx

       FHA Amendatory Clause Form: http://www.box.com/s/pg9h6c7rq2fh76u8kbq9

       Condo Questionnaire: http://www.box.com/s/b1600xymdoavtqbydkv5

       Property Repair Report: http://www.box.com/s/dcjkphblynv6sar0mvyb

       Dear REALTOR® Letter: http://www.box.com/s/81dgraiei3yetnsx5z3d

Marki Lemons, ABR, ABRM, ADPR, CRB, CRS, Green, e-PRO, CNE, CDEI, e-certified



Pinterest allows you to create and label theme-based image boards through media found on the Internet using a “PIN” button: i.e. a photo of Barack Obama’s house would be a PIN on a board labeled “Best Homes in Hyde Park.”

One of the best examples of maximizing the power of Pinterest is Michaels Store, which has over 25 boards with hundreds of Pins and tells the story of craft projects that can be created with supplies purchased at Michaels. Here are ideas for marketing your services using Pinterest and a PIN:

People use whiteboards, pin boards and corkboards to display images for inspiration or projects. They tack, clue and staple magazine clippings and print-outs of images and quotes to their boards. Now you can PIN and share your inspiration and projects with the world. There is no limit to the amount of boards you can create. My love for Pinterest is a new love and I’m going to enjoy it while it lasts.

Marki Lemons, ABR, ABRM, ADPR, CRB, CRS, Green, e-PRO, CNE, CDEI, e-certified 



Clearly, online tools are convenient. But they are also becoming essential for professionals who work in real estate. Here are three reasons why it’s to REALTORS’ advantage to make use of online efficiencies:

- From our perspective as a provider of real estate industry technology, we know that if you aren’t using tech tools already, your competitors are. REALTORS are using technology to help streamline transaction processes and find new clients. You can count on that, and you can’t afford to fall behind the curve. Online tools and services can make your routine business and prospecting tasks more efficient and often more secure, thereby also more powerful and more attractive to buyers and sellers.

- Chances are that the majority of your clients use online technology daily, whether they are blogging, using social media, making purchases online, using search engines to answer questions or scanning QR codes with their Smartphones. When tech-savvy consumers select a REALTOR, they expect that agent to excel in the online environment, too, and speak its language.

-  Reducing expenses and going green. Online technologies can save you money – not just time. Storing documents online, signing contracts electronically and reducing administrative requirements can eliminate both unneeded monetary and opportunity costs. It’s a “greener” way to do business, and that green approach will also appeal to today’s environmentally-friendly consumers.

When discussing online technologies that can make you more efficient, some specific applications include:

• Electronic signatures
• Electronic forms and document management/storage
• Transaction management, document sharing and task management
• Lead generation and client management
• Listing syndication
• Connecting via social media

 When adopting technologies to assist with tasks like these, you don’t have to go it alone. Companies exist, like ours, that can work with you to identify your day-to-day needs and which interactive forms, document management programs and other tools designed specifically for REALTORS can help. No matter which company you work with, experts can help maximize your ability to use technology to save time, cut costs and boost customer relationships.

Online technologies can help you exceed client expectations, increase referral rates and gain more business, according to agents we’ve talked to. The shift toward online technology can better serve the needs of REALTORS and consumers. By leveraging the right solutions, you stay a step ahead of your competition and exceed client expectations.

 Austin Allison

CEO, DotLoop

www.dotloop.com

Welcoming, warm and humble. That’s Millie, and she was so excited to do this interview. Her career looking back is one that I can only hope to achieve looking forward. Millie has worked with home buyers, developers and investors and is regularly turned to for real estate industry insight. Her numbers are staggering and make you double-take when you read them. For example, her Web site reads: “She has participated in the acquisition of over $520 million in land development sites. During her career, she has procured over $500 million in residential developments, overseeing each from inception through the final sell-out.”

When you rank number 27 for sales volume and 54 for unit sales nationally in the Wall Street Journal and Real Trends, Inc.'s “Top 400 Real Estate Professionals,” which Millie has, you’re kind of a big deal!

Yet Millie doesn’t solely focus on sales. She was the 2001 C.A.R. President, is heavily involved with the real estate community and still active with the Association. Millie is a leader who leads by example and has professional qualities we should all aspire toward. Read my interview with Millie below – and enjoy!

Me: How did you get into real estate and when did you know it was the right career path?

Millie: I started young; my mother and father dabbled in real estate. It was a side hobby for them, just something fun to stay involved with. I’ve always loved real estate; the architecture aspect is fascinating to me. I’ve also always loved what real estate means to people. There are real emotions tied to real estate and I recognize and respect that. My family always had the same REALTOR growing up and I saw what it meant to be a great REALTOR through her. I watched her do what she did and absolutely loved it!

I started in 1982 and that was a horrible time for real estate. The market was in turmoil and real estate was not a good place to focus, for most. However, I wasn’t intimidated by the negative hype. Rather it motivated me to find the opportunity. As I started my career I knew I had the right personality and the confidence required. That, in turn, allowed me to handle the ups and downs that come naturally with this business.

Me: What is a trick of the trade you can pass on, about staying organized and constantly upping your game in this business?

Millie: Have the right support network and have the right process. An efficient workflow process is critical, it lets you know where to focus your efforts. Have systems, track them and make sure they work! You also need to know how to promote yourself.

Me: You are a point of reference for market trends and real estate advice. What are some ways you stay informed and ahead of the curve on this?

Millie: Online is a great resource, there is a sea of information there. Look at the statistics provided by our Association. The National Association also has great market stats. Study that data, analyze changes and understand what they mean. Attend good seminars and conferences -- ones that you will benefit from. Don’t go just to go. I personally read Crain’s, and Baird & Warner provides us with great market data. It’s also critically important to study the mortgage industry and understand how it relates to real estate purchase and sales.

Me: What would you say was your best "lesson learned" from working in this business?

Millie: Understand your clients’ real goal and how to represent them properly. This comes from industry knowledge. Don’t ever approach things in a negative way; guide your clients professionally, be a facilitator and stay positive. The end goal is to bring the buyer and seller together. Don’t let your personal emotions get in the way.

Me:  What are a few points that separate the best from the average in this business?

Grigory Pekarsky,

C.A.R. YPN Past Chair and Managing Broker/Partner, Vesta Preferred Realty



Now I’m looking at things differently. I had a client over the summer who kept saying, “The feedback says we’re o.k., right?” And it was true. The feedback said we were o.k. But the agents, I knew, had more to say. The listing was overpriced and needed some work. But I had nothing to back me up. Then it occurred to me that I’d never been as forthcoming as I could have been with my fellow agents after I’d seen their listings.

So I switched gears. The results have been great, at least as far as I can tell. I’ve gotten thank-you notes, phone calls and positive responses from agents who were grateful to use my feedback to help their sellers. I always lead with something positive, for instance “the house is clearly well-cared for,” and then give actionable advice: “the first-floor bath would benefit from a fresh coat of paint.” I always comment on the basics - price, location, footprint, layout and amenities. I end with well-wishes for the agent and his/her seller. I had to laugh recently when I saw a listing come back on the market with all the fixes I’d recommended in my feedback!

You may wonder what good this does me. Well, a win for any one of us in this economy (or any time) is a win for all of us. The more inventory we move, the more we work positively to make things happen and reinvigorate our industry. A healthy market is what we’re looking for, and it is up to us to make it happen. At the end of the day, we are in this together. Honesty is the best medicine.

Carmen V. Rodriguez - Broker Associate

Coldwell Banker Residential Brokerage



 The announcement came at this year’s National YPN party. Photos from the evening don’t give that moment justice. I had the honor of accepting the award on behalf of our Association. Few moments in my life have made me more proud.

As I served as chair of last year’s YPN board, questions we constantly faced included:

“What is the YPN?”

“What makes the YPN different from all the other young professional groups?”

“What is the value proposition we offer to our members that they can’t get from other groups?”

We have some tough critics! However without you, our members, we would have never found the YPN’s direction. This national award is the cherry on the frosting – recognition that we are at least heading in the right direction.

We started this year by analyzing where to take the group and how to have the greatest impact on our members. Even though analysis of our focus, efforts and creation of new initiatives will be an ongoing process for the YPN, we realized a few key points:

1. The Chicago Association of REALTORS® YPN is a community. Community was a consistent theme this past year; YPN is a gathering of similar-minded REALTORS® who enjoy getting together. We share the same industry and issues. There is a comfort in entering a room of YPNers; you will be welcomed, and chances are you will leave feeling reinvigorated.

2. Members of the C.A.R. YPN set the standard for professionalism in our industry. As a whole, our industry needs to heighten its professionalism. I believe we can all agree we’ve run into situations in which we’re frustrated by the agent on the other side. Ever try arranging a showing and the MLS instructions are “call listing agent to show,” and your call goes straight to voicemail? Oh, and the voicemail box is full? Yeah, something like that…. We take pride in the standard our fellow YPN members set for themselves.

3. YPN members provide better service to their clients by understanding that we all have to work together, not against each other. Numerous times this year I had members tell me they were excited to see the agent on the other side of the transaction was a YPN member. They knew there would be no combative attitudes and egos to deal with. As YPN members, we realize our primary interest is our clients. Take the emotion out of the transaction and figure out what is best for our clients. Transactions made smoother because of YPN relationships is a side effect we can hope gets stronger over time. Personally, I have saved clients more than $70,000 this year because of the YPN. I consulted with one of my fellow YPNers on a short sale transaction. His extensive experience with short sales allowed him to give me invaluable advice. He had no financial interest in the transaction; he only wanted to help me out. This resulted in real savings for my clients. How cool is that?!

4. Continuing education is key. Alongside heightening the professional standard, YPNers understand the need to keep pushing the envelope on their real estate knowledge. The YPN started monthly breakfast meet-ups this year. Engaging topics and bountiful supplies of coffee and breakfast delicacies proved a successful combination. Also, our YPN Mentors initiative featured some of the most accomplished REALTORS® who provided insight into how they achieved success.

5. Giving back to our communities. As YPN members, giving back to our communities is a standard. This past year we pairing-up with Chicago Cares on Martin Luther King Day to volunteer. Giving back is a deep-rooted part of who we are as the YPN – appreciators of the communities where we work and live.

6. YPN members are the cool kids. I mean, let’s just call this fact! Have you ever been to one of our socials? Yeah, we know the importance of celebrating our hard work. From the beginning, work hard and play hard has been the way of life for YPNers.

Entering our third year, the C.A.R. YPN expects bigger and greater things. Tommy Choi, our 2011-12 chair, and Erin Mandel, vice chair, understand the importance of pushing the envelope of the value proposal for the YPN. Watch for even more powerful breakfast meet-ups, great YPN Mentor interviews, engaging volunteer opportunities and amazing social events. The list goes on but I can’t reveal it all. That’s part of the fun :)!

Please remember that we do what we do for you, our members. Without your support there is no need for the YPN. Winning Large Network of the Year only means we need to keep growing. How else can we get a back-to-back victory? Please give us your thoughts/suggestions. We can only grow together. Thank you for such an incredible year.

Grigory Pekarsky

Managing Broker/Owner, Vesta Preferred



Designated REALTOR® broker-managers in each office are authorized to call the Legal Hotline. During the first three-quarters of 2011, topics receiving the most calls included:

-          The scope of license law, 301 calls

-          Contracts to purchase, 234 calls

-          License law and business practices, 227 calls

-          Advertising, 194 calls

-         Escrow accounts, 182 calls

As a REALTOR® member of IAR, the Legal Hotline is your resource! Keep in mind, the service provides legal information, not legal representation. Its purpose is to offer information concerning real estate legal issues and problems. No attorney-client relationship is expressed or implied.

Learn more and get Legal Hotline contact information online.