Coldwell Banker Premier announced a merger with Coldwell Banker Professional Real Estate Services along with all of its sales associates, which further expands Coldwell Banker Premier’s office footprint into Cumberland, Maryland, and surrounding markets. This is the sixth merger by Coldwell Banker Premier since the beginning of 2022.
Coldwell Banker Premier was named a 2023 RealTrends GameChanger for its 76% transaction side percentage growth over five years (2018-2022.) The company’s COO, Stephen Meadows, was honored as a 2022 RealTrends Emerging Leader, now called Rising Stars.
The former Coldwell Banker Professional Real Estate Services office in Cumberland, Maryland will become Coldwell Banker Premier’s 18th office and largest by agent count in the company’s Mid-Atlantic footprint, which spans Virginia, West Virginia, Pennsylvania, Delaware, Maryland, North Carolina, and Washington D.C.
“I am proud of our team for enabling us to continue our expansion efforts,” said Steve DuBrueler, Founder and CEO of Coldwell Banker Premier, in a statement. “In this age of uncertainty in real estate, many brokers and owners are unsure of what their future holds. At the end of the day, we are here to build better lives for our agents and staff and having a strong foundation and expansive footprint is a key component of that”.
Coldwell Banker Premier Chief Operating Officer, Stephen Meadows said, in a statement, “Our company is committed to creating stability and continuing opportunities for our agents and to be a safe haven for companies and individuals looking to shift their business in this turbulent market.”
[Note from the editor: The “Mastermind Showcase” highlights companies and news from members of the the GEM. Today’s showcase: BizFin.]
AgentOps, brought to you by BizFin, is an agent reporting and data visualization tool that connects to CRMs, transaction management software, or anywhere an agent stores info, enabling non-technical real estate agents to understand, analyze, and take actionable insights from their data.
“Where should I advertise?” or “Should I add a new team member” or “What is my profit and loss” are simple questions that AgentOps can help answer.
The team has 15+ combined years of real estate tech experience that has been leveraged to create an easy to use tool that saves agents time, effort, and money.
My friend Gillian called the other day — she’s been having money trouble and was looking for help. “I’m not really a financial advisor,” I told her. “I write about money, and I try to help people at my web site, but I’m not qualified to coach you one-on-one.” Still, she’s a friend, so I resolved to at least give her some advice. I asked her to explain the situation.
“Tom and I are working all the time, but we’re always broke. He just wrecked his car, but we don’t have money to get it repaired. We’ll have to use the credit cards again. We don’t have any other choice. There’s never anything left at the end of the month,” she said. “I need some help budgeting so that we don’t keep having this problem.”
“Well, let’s see what we can do. I guess the best place to start is with your monthly income and your monthly expenses. How much do you and Tom bring home each month?” I asked.
“About $4,000 after taxes.” That was about what I expected.
“How much do you spend?” I asked.
“All of it,” she said, laughing. I expected that, too.
“How much do you have saved?” I asked. “Do you have any savings at all?”
“No, we don’t,” she said. “There’s never been anything left over to save.”
They don’t have anything left to save because they’re very good at spending money. Gillian and Tom live well:
They have a nice custom-built home.
Each of them drives a late model SUV.
They have no kids.
They enjoy expensive hobbies.
I have friends who make half what Gillian and Tom do, but have built a nest egg because they maintain a frugal lifestyle. It should be easy for these two to reduce their spending to create a budget surplus. “Well, let’s see if we can find a way to free up some cash,” I said. “Let’s list your fixed monthly expenses.”
Gillian listed their bills one-by-one. I jotted them down, making note of anything that seemed particularly extravagant. “Okay, let’s see what we have,” I said. “You’re paying a housekeeper $50 a week. If you were to clean the house yourself, you’d save $200 a month.”
“But…” she began.
“I think you’d be surprised at how much difference $200 a month can make,” I said. “I know from experience that even a $50 positive cash flow can make the difference between feeling broke and feeling flush. A $200 difference is huge.”
“Yeah,” said Gillian, “but I don’t want to clean the house. It’s too much work.” I was puzzled. To me, this was a quick and obvious way to free up money. If I were in her shoes, the housekeeper would be the first thing to go — it would be worth some extra work on my part. I tried a different approach.
“You each have a cell phone,” I said. “Do you both need one?”
“Yes,” said Gillian. “I don’t know what I’d do without one. And Tom needs one for work. I need to be able to reach him.”
Her reasoning seemed thin, but I pressed on. “Well, what about the cable bill,” I said. “You’re paying $60 a month for that. That’s an easy one. What about cutting back to basic cable?”
“Oh, we can’t get rid of cable,” Gillian said. “We watch TV all the time.” I was silent. “Are you there?” she asked.
“I’m here,” I said. “I’m just trying to figure out what to do. In order for you to turn things around, you’re going to have to make some sacrifices.”
“Yeah,” she said, “but we can’t cut cable. Tom would have a fit.”
“Gillian,” I said, “this is a little frustrating. I thought you wanted to get out of your money situation.”
“I do,” she said, “but so far you’re just suggesting things for me to get rid of. Isn’t there something else we can do? Can’t we use a budget to get more money?”
“That’s what I’m talking about,” I said. “Cutting things like these is making a budget. I know it seems terrible to have to give things up, but you need to make sacrifices — at least in the short term — in order to get ahead. You don’t have any savings. Any disaster means you’re putting money on your credit card. You need to build up some savings. You need to pay off your existing debt. In order to do this, you need to spend less than you earn. Right now you’re spending exactly what you earn, and you’ll never get ahead that way. I know, because for years that’s how I operated. You’re going to have to tighten the belt, Gillian. It’s the only way.”
I paused, and then said, “You need to decide what’s important.”
It was obvious I wasn’t going to be able to help her. I hadn’t even explored the Big Ideas, like moving down to a smaller home or trading one of their SUVs for a used car. I had started with the medium-sized stuff — the obvious chaff. But Gillian wasn’t interested in making changes if it meant altering her lifestyle. I changed the subject.
We talked about summer. Gillian asked how our garden was. I described the knee-high corn, the ripe raspberries, and Kris’ monster tomatoes. “I’m jealous,” she said. “I don’t have time to garden. I did get a chance to go to the nursery last week, though. I was able to pick up five shrubs on sale for about $10 each.”
The shrubs were the final straw. There was nothing I could do to help her because she wasn’t ready to be helped. She wasn’t ready to listen. She said she wanted to change, but she didn’t really. She was looking for a magic pill, something that would make life easier without any effort on her part. That’s not how it works. Eventually Gillian will reach a place so bad that she’ll begin to see the need to take responsibility for improving her situation, but she’s not there yet.
Our conversation reminded me of an episode of This American Life I heard recently. The show profiled debt guru Dave Ramsey, and at one point the reporter played a segment in which Dave experienced similar frustration:
Tina calls Dave because she’s upside-down on her car loan. She recently wrecked the car, but rather than use the money to repair the vehicle, she spent it. “Ooooo-kay,” says Dave, obviously flustered. “I’m afraid what you’re looking at is probably a really good part-time job, about six or eight months of 80 hour weeks.”
“Eighty hour weeks?” says Tina. “That’s too much work.”
“I can’t help you, Tina,” says Dave.
And I can’t help you, Gillian.
This story is based on actual events. Names and situations have been changed to protect Gillian’s identity.
Irvine, California, is renowned for its picturesque landscapes, master-planned communities, and commitment to green spaces. Within this vibrant city, you’ll find an array of exceptional parks that offer residents and visitors an opportunity to bask in the beauty of Southern California’s outdoors. If you’re considering relocating and renting an apartment in Irvine or buying a home, you’ll be delighted to discover the plethora of well-loved parks. Whether you’re looking to enjoy a leisurely day with family, embark on an adventure, or simply unwind amidst nature, these parks in Irvine offer many options. In this Redfin article, we’ll explore 7 of the most popular parks in Irvine, California.
1. Orange County Great Park
Spanning over 1,300 acres, the Orange County Great Park is a massive recreational hub that features sports fields, a carousel, an iconic helium balloon ride offering panoramic views, and even a farmer’s market. The Palm Court Arts Complex within the park houses an art gallery and artist studios, making it a cultural oasis in addition to its outdoor offerings. The Great Park is a testament to Irvine’s commitment to providing ample green spaces for its residents.
2. William R. Mason Regional Park
William R. Mason Regional Park is an idyllic haven spread across 339 acres, nestled in the heart of Irvine. The park boasts serene lakes, sprawling picnic areas, and shaded playgrounds. Visitors can rent pedal boats to explore the lake or embark on leisurely walks along its scenic trails. With well-maintained amenities and lush landscapes, Mason Park remains a favorite destination for those seeking a tranquil escape.
3. Quail Hill Loop Trail
Nature lovers and hiking enthusiasts will find solace in Quail Hill Loop Trail. This 2.8-mile loop trail weaves through the Quail Hill Preserve, offering captivating vistas of Irvine’s preserved open spaces. As you traverse the trail, you’ll encounter a diverse range of native flora and fauna, making it a perfect spot for birdwatching and wildlife observation. The serene surroundings make Quail Hill Loop Trail a hidden gem for hikers of all ages and abilities.
4. Heritage Park
Situated in the Woodbridge community, Heritage Park exudes a sense of history and charm. The park’s highlight is the Irvine Historical Museum, which provides insights into the city’s rich heritage and development. Additionally, Heritage Park offers well-manicured gardens, a large lawn area for gatherings, and peaceful walking paths. It’s an ideal spot to soak in the beauty of nature while appreciating Irvine’s cultural legacy.
5. Turtle Rock Community Park
Turtle Rock Community Park offers a delightful blend of recreational facilities and natural beauty. This park features sports fields, tennis courts, a playground, and picnic areas for families to enjoy. The park’s lush greenery and mature trees create a serene ambiance that’s perfect for unwinding and connecting with nature. Whether you’re seeking an active day out or a leisurely picnic, Turtle Rock Community Park has you covered.
6. Bommer Canyon
For those craving a more rugged outdoor adventure, Bommer Canyon is a must-visit destination. This nature preserve is situated within the foothills of the Santa Ana Mountains and offers a network of hiking and biking trails that wind through picturesque landscapes. Bommer Canyon’s serene wilderness and sweeping vistas make it an excellent escape from the urban bustle, offering an immersive nature experience right in the heart of Irvine.
7. Deerfield Community Park
Deerfield Community Park is a beloved neighborhood park known for its family-friendly amenities and welcoming atmosphere. The park features sports fields, basketball courts, and a playground, providing ample opportunities for recreation and outdoor play. With its open green spaces and shaded picnic areas, Deerfield Community Park is an inviting spot for gatherings and community events.
A final note on parks in Irvine
Irvine, California, stands as a shining example of a city that values green spaces and outdoor experiences. From expansive regional parks to intimate neighborhood oases, Irvine’s parks cater to diverse interests and offer residents and visitors a chance to appreciate the natural beauty of the outdoors. So, whether you’re seeking tranquility in nature or a day filled with recreational activities, be sure to explore these remarkable parks in Irvine.
According to Jeff Berman, General Partner at the venture capital firm, Camber Creek, one in three recent home buyers made an offer before even seeing a home in person. This revolutionary trend brought about by the adoption of cutting edge PropTech, is one of the subjects Realty Biz News discussed with Berman last week.
RealtyBiz: Why do you think property technologies have lagged behind the trend to adopt technology-based solutions set by other industries?
Jeff Berman: The most common reason given is that real estate is a “dinosaur” industry. And while that may be true to a certain extent – after all, many of the processes involved in property purchase/sale/lease haven’t changed in hundreds of years – that’s only half of the story. The other half requires us to examine the root of innovation…which is typically borne of necessity (as the old proverb goes, “necessity is the mother of invention”). And the fact of the matter is that players in the real estate industry have been making (a lot of) money going about their business(es) in a decidedly 1.0 manner. But I think that time is ending. Over the last few years we have noticed a sharp uptick in interest in technology from real estate industry insiders. They’ve woken up to the fact that technology is no longer a “nice to have” but a “need to have”.
RealtyBiz:We are seeing hundreds of millions in funding for proptech of every description. What do you see as “game-changing” technology in the space?
Jeff Berman: One of the fundamental ways technology is changing the real estate industry is in workflow/process. Let’s take a typical real estate (buy/sell) transaction. Even with the best stock trading apps at our disposal, you still have to follow a fairly cumbersome process to execute a transaction. There’s discovery (i.e. finding the property you want to buy or listing the property you want to sell), diligence, appraisal, title, legal, financing and settlement. And you have to pay a different set of professionals for each step along the way. The analog I like to use is the stock market 30 years ago. Back then, if you wanted to trade stock you would call a broker who would call a market maker who would call the trading floor to get the trade executed.
Now you can buy stock with a few swipes on your phone. So it will be with real estate. And while we’re still in early innings of this transformation, there are a number of companies developing software tools that are bringing that reality that much closer. For example, Camber Creek portfolio company Bowery built the world’s first end to end technology enabled appraisal firm cutting down the time to generate an appraisal – which is needed in most real estate transactions and is therefore a potential bottleneck – by up to 75% and often at less cost. It is companies like Bowery which will bring ‘game-changing’ technology to the fore.
Realty Biz: You and other experts have predicted that virtual reality (VR) will be an $80 billion dollar market by 2024. What kinds of tools do you see leading this dynamic market?
Jeff Berman: The promise of augmented reality and virtual reality in real estate is borne of the number of potential applications for the technology. From improved digital home/office tours to virtual collaboration – the possibilities are endless. In time, these technologies will reshape how we interact with our homes, our experience of walking down a city street, and how we conceive of offices altogether.
Realty Biz: – How do you pick a winner in a race to fill this property tech void?
Jeff Berman: Our (i.e. Camber Creek’s) ability to identify and scale market leaders is built on our unmatched network of decision-makers and principals in all real estate asset classes. This network provides the firm with a platform to rapidly test potential companies during diligence to determine actionable facts and propriety insights. We can literally “try before we buy” allowing us to find winning companies prior to making an investment. Once an investment is made, our hands-on approach provides portfolio companies access to the network and significant new revenue opportunities. This allows us to de-risk investments, accelerate the growth of portfolio companies, and create exceptional returns for investors.
Takeaway
Berman and other industry experts predict that by 2021, the market for virtual reality and augmented reality technologies will reach $108 billion. Virtual reality tech will become an $80 billion market by 2025, an of this, more than $2.5 billion will come from real estate. The Camber Creek executive’s suggestion that PropTech is a necessity rather than a nicety now, this is the takeaway every forward-thinking real estate professional should glean. For this analyst, I try and imagine a modern movie studio still trying to market silent films. This is the nature of the paradigm AI, AR, and machine learning are causing today. An investment in these technologies is an investment of necessity, in the infrastructure that is the real estate business.
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
Builders are increasingly offering buyers incentives in order to help sell their homes, with promotions including paying the closing costs, buying down mortgage rates and even straight discounts, which is a move they’re normally reluctant to make.
“We are really working a little bit harder to get people in the door and to get people excited,” Mark Mullin, a real estate professional who sells new homes in the L.A. area, told the Los Angeles Times. “These are things [builders] were not having to do a year ago.”
However, the concessions are still fairly small compared to a decade ago, though they are growing. For example, 23 percent of builders in the Los Angeles area lowered their listing prices in December, in addition to offering buyers money for upgrades, according to a recent John Burns Real Estate Consulting survey. In comparison, just 4 percent of builders did so one year ago.
But some 43 percent of builders were cutting prices in 2010, which shows they’re doing better than they were during the last throes of the Great Recession.
Normally, builders will prefer to offer incentives such as new amenities or cash for upgrades rather than cut prices. That’s because they don’t want buyers who’ve already signed a contract while the home is still being built to later back out when they see the prices slashed.
For example, development company Planet Home Living in Newport Beach, California, was selling units at $809,000 but not getting the traction it desired for its townhome-like units. In November, it slashed the price by $10,000 and added upgraded flooring, which would have cost buyers an extra $20,000. But so far, buyers are still not jumping at the discounts. Builders say they don’t expect to drop prices further.
Builders have seen sales slowing for several months. KB Homes, Toll Bros., and other homebuilders reported a drop in sales in the last quarter. Builders and real estate professionals say a jump in mortgage rates in 2018 and more than six years of price increases led to the slowdown. Some buyers “are waiting for reassurance that we are not in a crash,” Mullin told the Times.
Meanwhile, some homebuilders are readjusting their pricing expectations. “We took prices beyond the realm of reality,” says Grant Keene, chief executive of WJK Development, a luxury builder in Huntington Beach, Calif. The company tried unsuccessfully to sell single-family homes for up to $2.2 million—10 percent higher than the previous per-square-foot record for the area. “It made consumers balk,” Keene says.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Achieving success as a real estate agent requires more than simply understanding the mechanics of the job. Yes, you should certainly be able to post an impressive listing and understand the ins and outs of closing, but helping buyers and sellers means cultivating a diverse set of skills to navigate a complex and ever-changing real estate market. Here are 10 essential skills every real estate agent should possess.
1. Solid understanding of the market
It doesn’t matter if you specialize in investment properties, second homes, condos, or single-family homes for first-time buyers. The first skill you need is the desire and drive to stay current with market conditions. This includes understanding:
This knowledge helps you find the best properties for your buyers and ensures that you price a seller’s property appropriately.
2. Skillful communication
Communication is one of the most critical skills a real estate professional can cultivate. These skills help you to be both a better listener and a better speaker. And why is this so important?
Real estate professionals who listen carefully better understand their clients’ wants and needs. They won’t waste time on mismatched properties or investments beyond a client’s reach. And when it’s time to wade through complicated contract language or explain the benefits or drawbacks of a property, agents who communicate better have a leg up on their competition.
3. Talent for negotiation
Negotiation isn’t easy. There’s a delicate balance between being assertive and pushy compared to compromising and capitulating. Real estate agents who work hard to refine their skills are better at reading a buyer or seller so they can negotiate the best deal possible, even under challenging circumstances.
4. Dedication to service
Real estate is, in the end, customer service. So how does your customer service measure up?
Do you promptly return emails and phone calls?
Are you available to show properties during high-demand times (weekends and evenings, and, yes, sometimes holidays)?
Are you ready to go above and beyond to meet a customer’s needs?
If you answered “no” to any of the above questions, chances are good your customer relations need some work. This does not mean you should allow clients to walk all over you. But ultimately, if you want to close the deal, the customer (with a bit of hand-holding) is always right. It can be challenging to deal with needy clients, but they can also be the most loyal when you demonstrate your commitment to their happiness.
5. Ability to network
As with many jobs these days, you’re only as good as your team. Real estate agents may seem like lone wolves, but they are just the leader of a tight-knit pack of professionals. These include:
Contractors
Inspectors
Loan officers
Closing agents
Real estate attorneys
Real estate professionals who can call on a trusted network to make the deal move through the channels smoothly are more successful and sought after than those who struggle to make or keep contacts.
6. Marketing skills
Real estate agents are a little of everything: teacher, counselor, and financial adviser. Another hat to place on your head? Marketer.
Nothing draws more potential buyers than a beautifully crafted listing with eye-catching photos and tantalizing text. That doesn’t happen all on its own. And once you get that perfect listing assembled, it’s time to blast it on social media to get even more eyes on it.
Skillful marketing is also about understanding who’s buying and selling. A change in the target demographic means adjusting your marketing strategy appropriately. Some old-school realtors need help to adapt to marketing methods beyond paper advertising or direct mail. Don’t let that be you.
7. Comfort with new technology
Marketing is another area that has seen massive change in the last decade. These days, buyers and sellers complete complex real estate transactions from their couch, never visiting a property or setting foot in a closing agent’s office. So how comfortable are you with new real estate technology?
Can you:
Send and receive documents for electronic signatures?
Set up virtual property tours and respond to questions from them?
Manage tour scheduling on a website?
Decipher property valuation software for clients?
Realtors who are not comfortable with the latest technology in real estate will not be as successful in the years to come.
8. Time management
There’s an old saying: There’s no such thing as being on time — only late or early. It’s common for people to juggle full-time work, family, and volunteer activities, but how do you get it all done?
Time management. It doesn’t matter what your system is for being on time and meeting deadlines, so long as you have one. No client wants to feel like they are last on your list, even if you have a sick toddler or an overdue project for a night class. Use online planning tools or a paper notebook: whatever it takes to ensure your clients get the attention and service they need right on time.
9. Emotional intelligence
Buying and selling a home can be a complex and emotional process. Maybe a family is selling the home of a loved one who has moved to assisted living and needs to liquidate this asset. Perhaps a first-time buyer is realizing the dream of their first step to generational wealth building.
It’s not just a simple business transaction for these sellers and buyers. It’s personal, and you need to have the emotional intelligence necessary to honor their experience while still serving the needs of the transaction. It’s a delicate balance, but it’s essential to ease people through sometimes-challenging transitions.
10. Integrity
Integrity is doing the right thing even if no one is looking, and it can be a difficult skill in a profession with its fair share of dubious loopholes and quasi-legal transactions that nevertheless feel a little “off.”
Don’t be that real estate professional who goes for the deal at any cost. Too many people get so blinded by the possibility of lucrative commissions that they neglect to act ethically. This compromises the respect of the profession overall and can undoubtedly damage your reputation locally.
Act in a way that feels ethical and honorable to maintain personal integrity and achieve a successful career you can be proud of.
Luke Babich is co-founder and CEO of Clever Real Estate.
Redfin was in the red yet again in the second quarter, but its losses are narrowing and it’s tweaking its unique brokerage model to court more experienced agents in pricey coastal areas.
Redfin’s financials
Revenues at Redfin fell 21% year-over-year to $275.6 million, down from $606.9 million a year earlier. The brokerage and portal’s real estate services division, its principle source of revenue, dropped to $180.6 million, a 28% decline. In all, Redfin registered a $27 million net loss for the quarter, a 64.9% year-over-year decline from the $78.1 million loss in the second quarter of 2022.
Redfin’s mortgage revenue was $38.4 million, down 28% year-over-year. Its attach rate was 19%, down from the 20% last quarter.
In an earnings call with analysts on Thursday, Redfin founder and CEO Glenn Kelman said high mortgage rates and a frozen existing-home sales market resulted in a slowdown for Redfin’s salaried agents and it will likely continue for a few more quarters.
“Sales volume is near rock bottom,” he said.
The company expects to break-even on an adjusted-EBITDA basis over the next 12 months, rather than reach that goal by the end of 2023, which Kelman described as “a setback.” He did note that company expects to improve its adjusted EBITDA this year by more than $140 million.
Redfin’s market share in the second quarter of 2023 declined nearly 10% on an annualized basis to 0.75%. Revenue per transaction dropped 2.88% year over year to $10,224, the company said.
Kelman told analysts that agent layoffs forced the company to reassign about a third of its active customers, and the closure of ibuying arm RedfinNow eliminated 12% of its listing demand.
On a positive note, Kelman said the portal’s visitor gains increased 9% annually in the second quarter of 2023. Without naming the rivals, he said Zillow and Realtor.com declined in visitors. He also spoke of an improving the user experience with artificial intelligence and the promise of its burgeoning rental platform.
A more ‘traditional’ approach to brokerage
Perhaps the most interesting talking point on the call was Redfin’s embrace of what could only be described as a more traditional real estate brokerage model.
Redfin is eschewing junior agents and its high-fixed cost, salaried approach in targeted coastal markets. Instead, it’s looking to hire more experienced agents in high-priced areas, and Kelman said the brokerage is targeting the San Francisco and Los Angeles markets for a pilot program.
“In the San Francisco Bay Area, our share is below 2%, but the share of people who bought a home and who had earlier contacted our agents for service is nearly 30%. It’s even higher for purchases above $1 million,” Kelman said, adding that “anyone launching a brokerage today with that much demand would have a massive advantage in recruiting and retaining the best agents.”
Starting in 2024, Redfin plans to give agents in the L.A. and San Francisco “the lion’s share of the commission” on self-sourced sales “while keeping for ourselves the high margins on Redfin-sourced sales,” Kelman said.
Redfin’s goal, he said, is “to hire and keep agents who can deliver better service and higher close rates for Redfin-sourced customers buying homes above $1 million and incremental profits from their own sales, too.”
If the pilot is a success, it will be rolled out to additional coastal markets.
“This is just a more traditional salesperson who wants to augment his or her income with Redfin-sourced sales and we’re switching our existing agents in those pilot markets to this pay plan,” he said.
“So, usually, the trade-off at Redfin when we approach agents is you’ll get more Redfin customers, but at a lower split. So, you have to close more sales to make the same amount of income or more income. Now, we’re trying to offer agents the best of both worlds where we allow agents to close sales from their personal network at a split with Redfin.
“That’s similar to what they would get at a traditional broker while retaining the high margins on Redfin-sourced sales. So, let’s say an agent has closed 10, 15 sales in California above $1 million, they could come over to Redfin and earn about the same income, but we could help them meet customers to close another 10 or 15 sales. And that would be incremental, and that would be at the Redfin margin. This is what our competitors fear we would do.”
In our latest real estate tech entrepreneur interview, we’re speaking with Raj Dosanjh from Rent Round.
Who are you and what do you do?
I’m Raj Dosanjh, founder of property manager comparison site Rent Round that saves landlords & property owners money. I began the business in 2019 and growth has been amazing since (at times hard to keep up with!)
I also run a regulatory consultancy that works with banks such as Bank of New York & Deutsche Bank. Somehow, I find time to also manage my own Brazilian Jiu-Jitsu martial arts club as well.
What problem does your product/service solve?
Finding a property manager is often difficult for property owners & landlords. There’s a lot of ambiguity on costs, services and regulations the property managers adhere to. It’s sad to say there’s also a lot of jargon used that can be extremely confusing for those not experts in the rental market.
This is the actual reason I started the business. I was looking for property managers for my own properties in the U.K. I was perplexed at how hard it was to find a well-rated property manager and a reasonable price.
Landlords use our platform to scan property manager fees and ratings in their local area. This enables them to pick the property manager that’s right for them and at a fair price.
On the flip side, Rent round helps property managers get leads, i.e. people who need their services. The property manager market is highly saturated so, for the best property managers, we increase their income substantially.
What are you most excited about right now?
I’m excited about the current levels of growth, even during the current covid-19 pandemic.
It’s difficult in the current environment for property managers to take on new business. People aren’t buying property and tenants aren’t moving. This gives them a lot of time to look into how to grow the business and get ready for the post-pandemic future.
We’ve seen a large uptick in property managers joining our platform which is amazing to see.
We’ve got a host of new functionality just released that makes it easier for landlords to find their property manager. For example, we’ve reduced the time it takes to run a comparison and contact a property manager to 30 seconds. Aside from the benefits this brings to the business, I get excited about creating ‘nice’ things. RentRound’s polished and seamless platform is for sure one of those.
What’s next for you?
When I started the business, I set myself two growth areas for when the current model sees success. Now we have over 300 property managers listed in the UK, the ball is now rolling for the expansion of Rent Round.
First, we are expanding our service into the U.S. It’s obviously a larger market than the U.K and will have a different set of challenges, but I’m confident it will be successful.
The second area the business will grow into is the real estate selling market. The problems that resulted in me starting Rent Round are also apparent when people are looking to sell their property.
Separately, I’m also excited to be onboarding a new director into the businesses. My time is spread across many ventures so the extra support will no doubt provide more focus on the areas we need to grow into.
What’s a cause you’re passionate about and why?
As mentioned previously, I run my own Brazilian Jiu-Jitsu club. This martial art has been a great passion of mine for over 8 years and I’ve competed many times. I’m ecstatic that my passion has become a business.
My daughter is now 4 years old and as that’s the earliest stage to start, she cooercing me to start kids classes. We’re going to be doing them differently and not part of income generating businesses. Classes will be offered to underprivileged children for free.
Martial arts develops great focus & discipline. I hope that with the mindset children get from my classes, they’re able to implement that in the studies & future career.
I’m also passionate about animal rights (yes, I’m an annoying vegan). I’m proud of my contributions to animal welfare societies and attendance at various organised protests. With the covid-19 pandemic linked to animal farming, it’s a crucial time for the world to look at sustainability and our future as a species.
Thanks to Raj for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
If you stop making payments on your debts, creditors usually have a set amount of time to pursue repayment. After that time, they can no longer legally pursue the debt. But that doesn’t mean you can just forget about the debt. Learn more about how debt collection and statutes of limitations work.
In This Piece
How Does Debt Collection Work?
If a creditor doesn’t believe it can recover a debt, it may sell that debt to a collection agency. These agencies specialize in debt recovery and have the resources, staff, and time to pursue old debts more aggressively than some original creditors.
A collection agency can also list an old debt as a new line on your credit report with a continuation of the original debt date.
When you default on debt, the creditor may close your account and report it as a closed account with negative payment information. When the account is sold to a collection agency, the collection agency owns the account and can list it as a collections account on your credit report.
As long as the collection agency can document the debt, it has a legal right to pursue it. That includes attempting to sue you for the debt and following up with methods such as wage garnishment if it receives a judgment for the debt.
What Are the Four Types of Debt?
Debt generally falls into a few main types. Each type works fairly similarly when it comes to debt collection.
If you miss payments on a debt, it can become delinquent and go to collections no matter how the original account was set up. Here are the main four types of debt:
Secured. Secured debt means you put something up as collateral to borrow against. That makes debt collection simple: the collateral can be repossessed.
Unsecured. Unsecured debt doesn’t involve collateral, so collection can get a bit messy. This can include lawsuits and wage garnishment.
Revolving. Revolving credit involves an open line of credit you can continue to draw on as you pay it off. Credit cards are a common form of revolving credit. This type of debt is usually unsecured, but secured options are available for people with poor or no credit.
Installment. Installment debt is a one-time loan paid back via a series of payments. Examples include auto loans, student loans, and mortgages. Installment debt can also be secured or unsecured.
Can a Debt Collector Collect After 10 Years?
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can’t typically take legal action against you. If you notify them that the debt is past the statute of limitations and request they not contact you again, they likely won’t.
It also depends on when you made the last payment. The statute of limitations for most debts starts when you go into default. If a debt is 10 years old but you were making payments until three years ago, the debt is likely still within the statute of limitations and can be pursued by a debt collector.
However, it’s important to note that every case is unique and the statute of limitations on various forms of debt is different in each state. Understanding what the rules in your state are and how they might apply to your specific debt situation is important. Contact a lawyer for your unique situation if you have questions.
What “Restarts” the Clock on Old Debt?
Many people make the mistake of believing the statute of limitations on debt starts when they open an account. In reality, the countdown starts when you miss a payment or make your last payment.
For example, imagine you have a credit card you opened in 2010. You used the account and paid as agreed for five years. In 2015, something happened that changed your income and ability to make payments, and you stopped paying on the credit card debt. Depending on which state you’re in, the statute of limitations could be from three to 10 years. If the state has a six-year statute of limitations, that debt would have been collectible using the legal system until 2021—six years after the last activity on the account. Note that some debts have an even longer statute of limitations in some states, such as promissory notes, revolving credit, or legal oral contracts.
You can also inadvertently reset the clock on a statute of limitations by making an agreement to pay or paying a partial amount on a debt. In most cases, the clock resets starting at that date. It’s important to factor this point into any negotiations or repayment plans. If the statute of limitations is almost up, it may not be in your best interest to make any payments. However, if there’s still a lot of time left for creditors or collectors to sue, it may be wise to start making payments.
Having said that, an unpaid debt will stay on your credit report for about seven years, even if the time clock has run out.
How Long Can a Debt Collector Pursue an Old Debt?
In some states, a collection agency cannot try to collect at all once a debt is past the statute of limitations. In other states, they cannot sue you, but they may still try to collect the debt, which can include calls and written requests.
Some debt buyers—companies that buy and try to collect very old debts—still go after borrowers and might even take them to court. If they do this knowing that the debt is past the statute of limitations, they may have violated the Fair Debt Collections Practices Act. But they also know that most borrowers who are sued for old debts won’t show up in court, and the judge will issue a default judgment.
If your debt is past the statute of limitations at this point, you can re-open the default judgment and ask the judge to vacate it because it is time-barred. The process is relatively straightforward, but you may want to consult with an attorney to ensure it’s done correctly.
Always respond to legal summons. Judgments may give collectors additional collection powers, such as access to the money a debtor has in their bank account or the ability to garnish wages to collect the judgment. To prevent this, all a borrower has to do is appear in court at the appointed time and explain that they have a time-barred debt. If that is correct, the lawsuit will be dismissed.
It’s important to note that the statute of limitations is not the same as how long the debt appears on your credit report. The timeline for debt to stay on your credit report is often seven years, but again, this depends on your activity with the debt. If the debt was sold by the original lender at six years, and you made a payment with the new debt buyer, it could restart the clock.
What Is a Time-Barred Debt?
Time-barred debt refers to debt that’s beyond the statute of limitations. It simply means that the debt is not legally enforceable. It doesn’t mean you don’t owe the debt if it was legitimate to begin with. It means the creditor or collector can’t use the legal system to force you to make good on the debt.
According to the Federal Trade Commission, whether or not collectors can continue to contact you about a time-barred debt is up to various state laws. Some states do make this illegal. And in any state, a debt collector can’t sue you, threaten to sue you, or harass you over time-barred debt.
If you’re being contacted by a creditor about a time-barred debt, you can ask them to stop. The FTC recommends sending this request in writing by mail.
When Does the Clock Start on the Statute of Limitations for Debt?
Many people make the mistake of believing that the statute of limitations on debt starts when they open an account. In reality, the countdown starts when you miss a payment or make your last payment.
For example, imagine you have a credit card you opened in 2000. You used the account and paid as agreed for five years. In 2005, something happened that changed your income and ability to make payments. You stopped paying on the credit card debt in July 2005.
Depending on which state you’re in, the statute of limitations could be from three to 10 years. Let’s say the state in question had a six-year statute of limitations. The debt would be collectible using the legal system until August 2011.
You can also inadvertently reset the clock on a statute of limitations by making an agreement to pay or paying a partial amount on a debt. In most cases, that resets the clock starting at that date.
What Debt Isn’t Subject to the Statute of Limitations?
Time-barred debt refers to debt that’s beyond the statute of limitations. It doesn’t mean you don’t owe the debt if it was legitimate to begin with, but the creditor or collector can’t use the legal system to force you to make good on the debt.
What Effect Does Bankruptcy Have on Old Debt?
Bankruptcy means creditors can’t legally pursue debt collection of any credit debt in the bankruptcy. The debt also can’t be sent to a collection agency, and almost all collection activity, including legal action or wage garnishment, is prohibited. If you’re contacted about paying a debt after filing for bankruptcy, it’s a good idea to turn the matter over to your attorney to handle. Some debts can’t be discharged, such as student loans, taxes, and child support, even when you declare bankruptcy.
Negative payment history and bankruptcy can cause major damage to your credit score. So even if you’re off the hook for a debt, you still have to consider your credit and how you can start to build it back up.
What to Do If You Are Contacted About an Old Debt
If you’re contacted about an old debt, it doesn’t mean you should automatically pay it. Remember, agreeing to terms and providing a payment can restart the clock on an old debt, and it’s important to be aware of your rights as a consumer. Instead, take the steps below to see if you need to pay the debt and what your options are.
1. Ask the creditor to send you written notice of the debt.
This is required under the federal Fair Debt Collections Practices Act even if you don’t ask, but asking is a good first step. Scammers will say they aren’t allowed to send a notice or will try to email instead, which helps you weed out illegitimate callers. By keeping the initial phone conversation to a minimum, you may avoid saying or doing something that could hurt you later on with legitimate collectors.
2. Validate the debt.
Once you receive written notice of the debt, you have 30 days to request validation of the debt. Mail your request to the creditor or collections agency via a certified letter and ask them to validate the debt. You don’t have to give a reason for your request. You can simply say, “I dispute this debt. Please validate it.”
Tip: If the debt isn’t yours, you may want to reach out to a credit repair organization to help you work to challenge the debt and request it be removed from your credit report.
3. Confirm that the debt is within the statute of limitations.
While you’re waiting for the response from the bill collector, contact a consumer law attorney or your state attorney general’s office to confirm the statute of limitations for the debt. Consumer law attorneys who regularly represent consumers in cases against debt collectors often provide a free consultation.
4. Decide on an action.
Once you receive validation of the debt and confirm whether it’s inside or outside the statute of limitations, you typically have three main options.
Pay it. If you know you owe the debt and you can pay it, you can do so. Make sure you keep written records of the amount due and your payment. Sometimes these old debts get sold to more than one collection agency, and if you get another call about this debt, you want to have proof you’ve paid it.
Settle it. If you know you owe the debt and want to try to make good on it, but you can’t pay the full amount—or if the debt has been inflated by fees— you may want to negotiate to settle it for less than the full amount due. This is tricky, though, because once you start negotiating, you could reset the statute of limitations and end up being sued for the entire debt. That could lead to wage garnishments or other issues. If you want to go this route, your best bet is to talk with an attorney first.
Send the collector a letter telling them to leave you alone. You have the right to ask a debt collector to stop contacting you. Once you do that, they are only allowed to contact you to tell you if they are taking legal action against you. If you know the debt is outside the statute of limitations, state that in your letter and tell them not to contact you again.
Do Time-Barred Debts Show Up on Your Credit Report?
Time-barred debts can show up on a credit report. Negative items such as missed payments and collections accounts stay on your credit report around seven years. Many state statutes of limitations on debt are less than seven years.
Can a Collection Agency Report an Old Debt as New?
A collection agency can list an old debt as a new trade line on your credit report. It works like this:
You have a loan, credit card, or other debt. It’s listed as a tradeline by your creditor on your credit report.
You default on that debt. The creditor closes your account. It’s now listed on your credit report as a closed account with negative payment information.
The original creditor eventually sells the account to a collections agency.
The collections agency now owns the account and can list it as a collections account—a separate tradeline—on your credit report.
Debt Collections and Credit Reports
One of the best ways to protect yourself against old debts cropping up and creating problems is to keep an eye on your credit report. Sign up for ExtraCredit® for a proactive look at your credit reports and scores so you can take care of issues before they become legal problems.