Kevin and Fred TV

This week, master your craft

When was the last time you refreshed how you do things in your business? If the answer is “a while ago”, you could well be on the road to becoming obsolete and irrelevant.



Want to know how to avoid the pain of becoming obsolete?

Spend a few minutes to listen to this week's business tip.

ARE YOU WORKING TOO MUCH? Business Tip: Slow it down!

About the Episode

On this episode, I’m joined by real estate superstar, and fellow Raiders supporter, Jereme Kleven. What Jereme and his partner Mark Hutchins have managed to achieve with their business is nothing short of legendary. They have built a powerful and enduring business partnership since their early twenties; and their brokerage has over 2000 agents locally, closes over 5000 transactions monthly, and their listings make up 11% of the Phoenix market. Not only is My Home Group one of Phoenix’s top brokerages, the company has also managed to expand into other markets with a count of a whopping 2600 agents in those markets!



Jereme is the owner, co-founder and designated broker of My Home Group, a company that he and Mark Hutchins founded in 2004. My Home Group is on the cutting edge of technology. Providing effective tools for each agent's success as well as streamlining each transaction allowing agent's to focus more on their clients and their business. Jereme also hosts The Daily Dose podcast.




Growing an independent national brokerage to that level takes commitment, a laser focus on systems and leadership, and developing an instinct for knowing the right markets to go deep on. Growth at this level also brings with it it’s own unique set of challenges; but what keeps Jereme going is the dedication he has to provide his agents with the best systems, platforms and value to boost their businesses. My Home Group has done this so well, it’s no wonder why it’s the fastest growing brokerages in the country.





In Today’s Episode, We Talk About;



- The power of a great partnership.

- My Home Group, how it got started and became a large brokerage.

- The importance of constantly refining operations.

- The biggest lesson Jereme he learned through expansion.

- Why My Home Group chose a National brokerage vs. a franchise system.

- The importance of nurturing B2B relationships.

- Why we shouldn’t be too focused on GCI.

- What’s most exciting to Jereme about the future of real estate.

- The importance of commitment when you want to grow a successful business.







Guest Info



Jereme is the owner, co-founder and designated broker of My Home Group, a company that he and Mark Hutchins founded in 2004. My Home Group is on the cutting edge of technology. Providing effective tools for each agent's success as well as streamlining each transaction allowing agent's to focus more on their clients and their business. Jereme also hosts The Daily Dose podcast.



Facebook: https://www.facebook.com/pages/category/Real-Estate/Jereme-Kleven-421927225294097/

***Culdesac, the U.S.’s first, from-scratch car-free neighborhood is coming to Tempe in 2020



Ryan Johnson left Opendoor in 2018 to co-found Culdesac, which now says it's building the first from-scratch, car-free community in the US



Culdesac Tempe, a 1,000-person development set to open fall 2020, bills itself as the “world’s first post-car real estate developer.” Founders Ryan Johnson and Jeff Berens say they want to provide people the option of living a car-free lifestyle. The mixed-use Culdesac Tempe neighborhood is a $140 million project, capitalized by traditional real estate investors, and will include a dog park, restaurants, market hall, grocery store, and gym, with access to a light rail that connects to downtown Tempe, the airport, and Arizona State University. 16 acres near Apache Boulevard and River Road



Culdesac has so far raised $10 million in venture capital, indicating that investors are willing to give the company a chance.







***Gen Z FICO scores beat Millennials and Gen X

The youngest generation outperforms elders despite shortest credit histories



Of the three American generations following the Baby Boomers, the youngest is doing better at managing its credit.



Gen Z, meaning people born in 1995 or later, has an average FICO score of 637, above the all-age average of 634, according to a report from LendingPoint, a consumer lending platform.



Gen X, the 1965 to 1980 generation that followed the Baby Boomers, has an average FICO score of 632, the report said. Millennials, born between 1981 and 1996, have an average FICO score of 629.



The average FICO score for Baby Boomers, born between 1946 and 1964, was 645, according to the report. The results are based on almost 5 million applications for person loans received by LendingPoint between July 2018 and July 2019.





***Fannie Mae, Freddie Mac loan limit increases to more than $510,000

Conforming loan limit has now increased by nearly $100,000 since 2016



The Federal Housing Finance Agency announced Tuesday that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to more than $510,000.



In most of the U.S., the 2020 maximum conforming loan limit will be raised to $510,400, up from 2019’s level to $484,350.



This marks the fourth straight year that the FHFA has increased the conforming loan limits after not increasing them for an entire decade from 2006 to 2016.







***Freddie Mac: Here’s what to expect from the housing market in 2020 and beyond

Mortgage rates should stay low, leading to another big year for refis



Just over a year ago, mortgage rates nearly hit 5%, levels that hadn’t been seen since the early part of this decade. But as we get ready to move into a new decade, mortgage rates are more than a full percentage point lower than that, comfortably back in the 3-4% range.



And according to a new forecast from Freddie Mac, mortgage rates should stay that low for the rest of this year and well beyond that.

In Freddie Mac’s newest housing market forecast, the company’s economic and housing research group states that they expect mortgage rates to remain around 3.8% for the rest of 2019 and stay at that level for all of 2020 and 2021.



As other recent forecasts and mortgage market data has shown, this year’s unexpectedly low mortgage rates have driven a rise in refinances, as well as a surge in home purchases.



A recent forecast from the Mortgage Bankers Association shows that 2019 is expected to be the best year for refis since 2016, and the best year for purchase mortgages since 2006.

About the Episode
On this episode, I’m joined by exceptional lender, highly successful mortgage entrepreneur and originator, and good friend, Bill Gaylord. With almost 30 years in the mortgage business under his belt, Bill has not only built one of the most successful partnerships in the mortgage business, but his company consistently brings in as much as $55 million in a month and originate over 900 loans in a year. In our business, it’s very unique for successful partnerships that aren’t multi-generational family businesses or husband and wife teams. What Bill and his partner Sam Hansen have achieved is an incredible feat, and it’s something so many agents and loan officers can learn from.

Bill has been in the real estate industry since 1986 and in the mortgage industry since 1993. He has always been on winning teams including being a member of the 1980 National Championship University of Arizona Baseball Team. He is nationally recognized within the mortgage industry speaking and training throughout the country. Since inception in 2009, the Gaylord-Hansen Team at loanDepot has closed over $2.8Billion in loan volume closing over 8,500 transactions.

As we gear up for 2020, and set our businesses up to grow in a market where a lot is changing; we have to think about our relationships with consumers and customers. We need to build operations that allow us to get to the consumer faster than before. This means we need to stay top of mind, and never fall asleep behind the wheel. Even when the year is ending, and it’s tempting to slow down and relax, this is when we should intensify and take advantage. That way, when the new year begins, we are firing on all cylinders.


In Today’s Episode, We Talk About;

- Bill Gaylord’s story and journey starting in mortgage in 1992.
- Why Bill’s business partnership works so well and building a business that does over 925 loans a year.
- Bill’s tips for finding a good business partner.
- Strategies for building relationships in 2019.
- How Bill uses his business as a platform to help the community.
- Bill’s top tips for living a kick ass life.



Guest Info

Bill is a Mortgage expert, and co-founder of Gaylord-Hanson. He has been in the real estate industry since 1986 and in the mortgage industry since 1993. He has always been on winning teams including being a member of the 1980 National Championship University of Arizona Baseball Team. He is nationally recognized within the mortgage industry speaking and training throughout the country. Since inception in 2009, the Gaylord-Hansen Team at loanDepot has closed over $2.8Billion in loan volume closing over 8,500 transactions.

Website: https://gaylordhansen.com/

We waste so much energy on holding on to the old.

What really need to do is so simple...

It’s so simple that almost all people miss it because it’s too obvious

**Blackstone cashes out on Invitation Homes**

Sells off remaining shares in single-family rental operator for $1.7 billion



Blackstone’s bet on the single-family rental market is now complete, as it was revealed this week that Blackstone is selling off its remaining shares in Invitation Homes for more than $1.7 billion.



In the early part of this decade, Blackstone began pouring money into distressed residential real estate, spending billions to buy up foreclosures and other distressed properties, then turning those houses into single-family rental properties.



Blackstone’s move into single-family rentals was conducted through Invitation Homes, which the firm helped grow into one of the nation’s largest single-family rental operators.

Blackstone eventually took Invitation Homes public in 2017, with its initial stock sale raising more than $1.5 billion.

Then, earlier this year, Blackstone began selling off part of its investment in Invitation Homes.





KW Profit Share Changes

Unofficially, company pushing to change vesting period from 3 years to 7 years and the vesting would be invalid if you move to a competitor. IALC vote forthcoming.







Crowdfunder Nico aims to cut locals in on gentrification returns



The public benefit corporation wants to purchase and sell small stakes in rent-stabilized buildings



A startup called Nico is putting a social entrepreneurial spin on real estate crowdfunding by buying buildings in gentrifying neighborhoods and then selling small stakes in those buildings to local residents and other investors.



The company’s stated goal is to cut residents in on the profits that normally go exclusively to developers while giving these residents a say over how buildings are managed (or redeveloped or sold).



Nico expects to launch a fund in the Los Angeles neighborhood of Echo Park in early 2020. It will initially own three rent-stabilized, multi-family buildings in the neighborhood but could expand over time.

About the Episode

My guest today is John Mitchell, a man whose life story, transformation and success is incredibly inspiring. By implementing the mental technique he developed, he was able to take his income from six figures to seven figures and change his life in other key areas like relationships and health.

John’s 12 minutes a day “Think It Be It” technique is recognized today as the “Top Practical Application in the World” of the legendary book Think and Grow Rich. John started out as a CPA but became an entrepreneur at the age of 30. He owned companies in a variety of industries including real estate development, banking, a restaurant, a children's book publishing company, and an automotive company. But upon reaching 50, he wasn’t as successful as he thought he should be. Then he found the top book on success and achievement ever written, Think and Grow Rich, with over 100 million copies sold. And John developed his 12 minute daily technique around the book’s central concept – “what you envision in detail on a daily basis is what shows up in your life”. A practical application of the legendary book didn’t exist before so John created it.

When he applied his technique to his own life, he saw his income go to over $5 million a year. Previously, for 20 years as an entrepreneur, he earned low six figures a year. This huge difference happened because the daily technique he implemented significantly increased his control over himself. It also made him laser-focused every day on only the 2-3 things that move the needle in his business and his life. John’s company Think It Be It is the top company in the “Success through Science” category of the success and human achievement field, and the science behind his technique was profiled in a Time Magazine cover story.

Our ongoing thoughts determine our success, but in order for those thoughts to translate into new habits and different results, we have to consistently work on reprogramming how we think. We need to lead a life of intense intention, clarity, discipline and focus and there needs to be a tool we can rely on to implement them into our lives. That is how we break through the ceiling and grow in every key area of our lives.


In Today’s Episode, We Talk About;

- Why it takes more than hard work to earn seven figures, and the significance of Think and Grow Rich.
- How John Mitchell went from six figures to seven figures 25 years into his career
- How to reprogram our internal operating system so that we’re not working from a place of fear and reactivity.
- The 2 key behaviors that set mega-achievers apart.
- John’s 12 minute “Think It, Be It” mental technique.
- Darren Hardy’s success story and how John connected with him.


Guest Info

John is an Entrepreneur and Success mentor helping entrepreneurs up their game to NET 7 figures a year. He is the founder of Think It Be It, the “Top Practical Application in the World” of the legendary book Think and Grow Rich. Register for John’s FREE 5 Day Entrepreneur "Success Formula" Program here https://www.theunfairedge.com/.

Email: [email protected]

It's Quarter 3 Earnings Reports Season!



Redfin beats expectations, posts $239M in revenue for Q3 2019

The latest earnings report comes as the tech-oriented brokerage steadily expands programs such as RedfinNow and Redfin Direct, which could upend how consumers engage with real estate



Redfin continued a multi-quarter hot streak Wednesday, revealing that during the third quarter of this year it raked in $239 million in revenue.



The online brokerage’s revenue represented a jump of 70 percent year-over-year. Gross profit also jumped from $42.3 million a year ago to $53.4 million this quarter, an increase of 26 percent. And earnings per share ended up at $0.07.



All of those figures easily beat analyst expectations. Leading into Wednesday’s report, financial experts had expected to see the company bring in $230.14 million in revenue, an increase of merely 64.1 percent year-over-year. Analysts also expected earnings-per-share to remain unchanged from a year ago at $0.04.









Realogy posts a net loss of $70M in Q3 after $1.6B in revenue



The loss was driven primarily by a $180M impairment at NRT, Realogy's own-side brokerage



Realogy reported a net loss of $70 million in the third quarter of 2019, a major swing from the $103 million in profit it posted in the third quarter of 2018. The loss was driven primarily by a $180 million impairment at NRT, Realogy’s own-side brokerage, according to the company.

The company also posted an adjusted earnings per share of $0.65, missing the consensus estimate of $0.85 per share.



Realogy to Sell its Global Relocation Business to SIRVA Worldwide, Inc. in $400 Million Transaction

- Realogy will use a substantial majority of net proceeds to pay down corporate debt and will leverage Broker Network and Affinity business to serve a broader customer-base



Saddled with $3.5 billion in total debt, Realogy said Thursday that it will sell Cartus’ relocation business to SIRVA, a relocation company that owns Allied Van Lines. The deal does not include recent affiliations meant to drive business, such as partnerships with Amazon and AARP.



“This transaction is about simplifying and amplifying — simplifying Realogy’s business, and amplifying Realogy’s value,” the company said in a statement. The deal is expected to close during the first half of 2020.







EXp World Holdings posts major revenue gain, losses narrow



The parent company of eXp Realty beat the consensus estimate, posting a net loss of $0.03 per share and revenue of $282M



EXp World Holdings, the parent company of virtual cloud real estate brokerage eXp Realty, continued its precipitous growth in the third quarter of 2019, posting $282 million in revenue, a year-over-year growth of nearly 80 percent.

Overall losses for the company also narrowed, as eXp World Holdings posted a net loss of $1.8 million, compared to a net loss of $4.6 million in the third quarter of 2018.



“In addition to revenue growth of nearly 80 percent year-over-year this quarter, improvement in managing our allocation of capital enhanced our measures of profitability,” Jeff Whiteside, eXp World Holdings CFO and chief collaboration officer, said in a statement.







SoftBank posts $6.4B loss, CEO 'regrets' WeWork investment

The company also reported it lost $4.6B in its WeWork stock value after WeWork's failed initial public offering



SoftBank, the Japanese conglomerate with a heavy investment in U.S. tech startups, posted a net loss of slightly more than 700 billion Japanese yen – or approximately $6.4 billion – in the second quarter of the fiscal year ending March 31, 2020.

The company also reported after WeWork’s failed initial public offering and public valuation plummet that it lost approximately $4.6 billion in its WeWork stock value from that valuation decline.





Compass makes major changes to its stock option program

The company is shifting from offering equity stock options to restricted stock units that would vest in the event of an IPO



Compass is making big changes to its agent equity program, according to an internal memo obtained exclusively by Inman. The company is shifting from offering equity stock options — an option to buy stock in the future at a set price, or strike price — to restricted stock units that will vest under certain conditions.



“This is an exciting change that eliminates the need for you to pay a strike price to purchase your equity,” Compass’ CFO Kristen Ankerbrandt explained in the memo.



A source within Compass told Inman that the vesting schedule is much shorter with the new plan. The vesting schedule was previously four years, but with this new schedule, agents’ stock units will vest either in the event of an initial public offering (IPO), or when the board grants the restricted stock units in 2021.