All Forum Posts by: Fletcher Clardy

@Marlen Weber

No problem. Thanks for taking the time to read and reply.

What are some acronyms you have learned over the years?

Happy Friday to everyone,

As we continue to become more and more digitally focused, acronyms have become a staple in social media and other reading/writing platforms.

While reducing the number of words you type can save time, it can also confuse your reader. When writing, we must make sure we stay professional and separate texting a friend from crafting business content for your marketing strategy.

Knowing some brief rules with acronyms can help you save time and space while keeping your message clear and professional.

Proper Usage – There are many rules for using acronyms. I will only list a few. (Feel free to add any important rules you use)

   1. Acronyms are used to avoid the repetitive use of long cumbersome titles.

     Ex. OSHA - Occupational Safety and Health Administration 

   2. When using acronyms in our writing we must find ways to define the acronym such that readers will fully understand. 

   3. In short text acronyms are defined at the first use in the text with a parenthetical reference after the full title. 

     Ex. Clarity Equity Group (CEG) is a boutique commercial real estate investment firm.

When to use vs. When not to use

1. When on the phone it is okay to use acronyms because you can offer an explanation. I would still be careful and gauge your usage based on the relationship and content.
2. It is okay to shorten names of recurring titles.
3. It is not okay to send through emails. You have no way of knowing if the reader understands you.
4. It is not okay for websites, memos, fliers etc. Again, no way of knowing if the reader understands you (This also can be interpreted as being lazy).
5. It is not okay to start a sentence with an acronym.

A few acronyms in our real estate industry:

CMBS-Commercial mortgage-backed securities

FDIC-Federal deposit insurance corporation

NOI-Net operating income

DSCR-Debt service coverage ratio

HELOC-Home equity line of credit

I would love to hear some new acronyms unfamiliar to me. Viewers please write down some acronyms you have come across that have been new to you.

Things to Remember:

1.  Acronyms are very useful if used properly. Educate yourself on proper usage to ensure you do not damage credibility when starting new relationships.
2.  Don’t give potential or current clients a reason to think you are unqualified or hard to communicate with because you were too lazy to write out a full word or phrase, and don’t assume that your readers will know the same acronyms you know.
3. Acronyms are used to avoid repetitive use of long titles. In order to do so you must first introduce and define your acronym at the first point of use in a text with a parenthetical reference like explained above.

By: Fletcher L. Clardy III

@Anthony Angotti

Reaching out to debt partners is a great way to generate cash. We also purchase notes and other distressed assets from banks, who are certainly preparing for the worst. 

Good to hear your interest payment is still favorable as well.

I wanted to shed some light on our current Covid-19 situation and speak to capital raising.

Yes, some companies are at a standstill and some investors and debt firms are not lending with the uncertainty of how long the shutdown will last. However, there are still companies powering through finding ways to make deals happen.

With the protection the government is providing to banks, they are still able to lend as well.

Three key words to remember when raising capital that will help you get started: Relationships, Plan, Deals.

1. Relationships - This industry is based on relationship building and trust.

1. You must establish trust with investors. If you are talking about trust how can I be trustworthy? This is just how to communicate.
   1. You must be sharp, enthusiastic, and an expert in your field. That helps build trust.
   2. Find alternative ways to communicate. Zoom, google hangouts, etc.

1. Know your investor. What is their personality/demeanor? What is their investment criteria?
   1. Alignment of interest is key in all business transactions.
   2. Have patience. Follow-up and add value when you can.

1. Know your investors financial profile. Does your investor even have capital to lend? (Several companies have been exposed for not actually having their own capital due to Covid-19 be sure you are working with lenders who have a sound tract record)

1. Plan – Having a plan is important. It’s the foundation of preparation and objectives that will help you achieve your goals.

1. You want to prepare for those questions’ investors will ask.
   1. Where is the dollar going?
   2. What will the funds be used for?
   3. Where are your sources and uses?
   4. What is your exit?
   5. How will you return our money?

1. “Know everything you can and ask questions until you know everything” There are people who know things you don’t, find those people and align your interests with them.

For real estate investing in a pitch deck clarifies these typical questions to investors. Your pitch deck is your sophisticated and professional presentation highlighting the most important aspects of your investment strategy. (We know our target audience because we have already done all of our research on the investors while we build lifelong relationships)

1. Deals – The best way to start relationships is to bring investors deals that they have expressed interest in.

1. Create a reputation as being a deal magnet. Work hard to attract quality deals and vet them or else you will be wasting the investor’s time and damaging your relationship.

Things to Remember:

Business must continue – Investors have tightened their lending policies, yes. However, they are still lenders in the marketplace. 

Everyone is adjusting –As business slows due to Covid-19, crisis management and response have been critical to develop. Businesses have been working to implement scenario plans that are specific to this crisis and that will maintain the continuity of work. As we shift to remote work, the right technology tools and clear and constant communication are more important than ever.

Prime time to start relationships – The majority of our workforce has been subject to working from home. Although first impressions via zoom or google hangouts is new to most, this is becoming the new normal. Take this opportunity to connect with other like-minded professionals.

Couldn't agree with you more @Brian Van Pelt. 

How do you feel banks will service loans if we continue to have Covid-19 restrictions?

The FDIC & NCUA have been encouraging banks to help meet the needs of customers affected by Covid-19. Some assistance includes, for example, waiving fees on late or missed credit card or loan payments, extending payment due dates, and providing small business loans to small business members during this crisis.

I would like to discuss the current market and predictions for post Covid-19 regarding notes.

Do you feel we will have more notes available in the market? Or will the government provide enough assistance to banks allowing them to work with borrowers during this time?

If you are unsure about mortgage notes, I provided a brief introduction with some questions to ask lenders if you are buying.

Loans that borrowers take out to purchase a property are called mortgage notes.

Banks and other entities will sell those real estate notes to free up their cash flow. Note buyer's step into the role of the bank and collect the borrower’s principal and interest rate payment.

To be clear when you purchase a note and mortgage, you’re buying the debt that remains to be paid on the note, which is secured by the asset outlined in the mortgage.

When screening notes you must qualify the note to be sure it is marketable.

Their are two types of notes: Collateralized or unsecured

Some questions to ask when speaking to a lender:

1. Is the borrower currently making payments on the mortgage, trust deed or contract for deed?
2. Are the payments current?
3. Is the note secured by any property? If so, what kind?
4. What was the sale price and date of sale?
5. What is the current balance of the mortgage?
6. What was the down payment for the loan?
7. Is there a balloon? If so, when is it due?

Afternoon Bigger Pockets Family,

As the United States prepares for an unprecedented pandemic. I would like to offer some advice on how to protect yourself, your family, and others from the COVID-19 virus.

1. Know How it Spreads

2. Take Steps to protect yourself

    a. Clean your hands often

    b. Avoid close contact

3. Take steps to protect others

    a. Stay home if your sick

    b. Cover coughs and sneezes

    c. Wear a facemask if you are sick

    d. Clean and disinfect

Below is a link to the CDC (Centers for Disease Control and Prevention) which describes the outlined topics in more detail.

https://www.cdc.gov/coronavirus/2019-ncov/prepare/prevention.html

We hope you are safe and enjoying time with your family.

@Joseph Cacciapaglia Thank you so much for that very valuable input. Really good feedback!
We all work with banks constantly and I am usually visiting their websites for contact info myself. So I understand. Some useful information you highlighted:

1. It's very important for me to see actual team members with full bios, and to be able to select individuals to email.

We have full bios and pictures on our "About Team" page, but I will check the email function so it doesn't take you to outlook. That also bothers me

2. Lenders that post prevailing interest rates are very useful. I'll sometimes frequent sites that have good quote calculators for mortgages or insurance.

Always add value however you can. We will have a blog page but still thinking of other ways to add value to our first time users.

3. If it's too slick, I think the owners aren't smart enough to realize they're blowing money on an ego project.

I have also ran into these websites that have spent much more than needed.

4. I don't think the free ebook trade for my email works very well anymore. I think most people have a throw away address that they use for those, or just unsubscribe right away.

We definitely have a free PDF book download at the bottom of page also. Not sure how it will work for us but we have had some good feedback on the book since it is relative to the industry. But may be time to pivot.

Thanks again for the feedback. Very useful information from the users perspective.

Fletcher

@Account Closed, Totally agree with you their. One of the main reasons we had to invest in a new website because to many users would visit and still had questions on what services we offer and what could we do for them. This was a big problem!

Clarity Equity Group has been working on a new website since September 2019. We are now in the final stages of production and weeks away launch. Through this process I have learned many important new concepts about websites, content, and SEO (Search Engine Optimization).

Our goal is to replace our old website, create a more modern sophisticated website that explains exactly what we offer in an elegant manner and is easy to use for the user.

To my Bigger Pockets family. What draws you in as a new user when visiting another professional's website?

1. What is important to have that makes you stay and seek more content?

2. What makes you immediately exit the page and not return?

3. How important is the design and navigation of the website?

4. If the website is poorly designed, is that a NO on the potential new relationship?

5. What content/information excites you to the point of subscribing to their email list?

All thoughts are welcome and greatly appreciated. Happy Monday all!

Fletcher/Consultant/Clarity Equity Group