Mister VA's Mortgage News

Road Trip: Marketing 101?

The billboards started just south of Fayetteville, North Carolina.  I had heard of South of the Border for years.  I knew it was in South Carolina.  I had never been to South Carolina.  I really had no interest in stopping there as I had about a 500 mile drive that day.  But the billboards were very interesting.  It seemed like everything imaginable was there and I remembered a case study in college on Wall Drug.  I envisioned something similar.  Wall Drug offered free ice water to travelers headed toward the Badlands in SD and it grew to become an American icon.  Someday, I would like to see it.

As I drove further south, the billboards increased with frequency, and as I glanced at my gas guage, I figured I might as well stop.  It seemed to be a relic of the past in the days before Disney World.  Back in the days of cabins along US Highways and regional attractions like the defunct Land of Makebelieve in Upper Jay, New York.  There were numerous buildings and a huge water tower with a sombrero.  I went into a shop or two and saw the gas prices.  I bought nothing.  Nada.  I saw a mostly deserted parking lot though to be fair it was only about 9:30 a.m.

So, in terms of marketing, did they succeed or did they fail?  The truth was somewhere in the middle.  They did succeed in getting me to exit the highway to stop at the place.  And had they possessed a display of t-shirts for kids inside the t-shirt store, I would have bought a few of them.  But, they did not seem to have what I was looking for.  So, I decided to hit the road.  I suppose I could have looked at the other shops, but it appeared that the advertising which may have worked in 1970 did not work in 2009.  At least it did not get me to buy anything which was the whole point of the money spent on advertising billboards.

Consider your own marketing efforts.  Do people say, "I have heard of that place"?  Or, do they say, "I have done business there and you should, too"?  Sometimes, you think the billboard is the answer.  But, it merely is a confirmation of other marketing efforts which result in warm referrals.  And those marketing efforts involve making your present clients happy they have chosen to do business with you.  Otherwise, they may end up like me in that parking lot wondering why the heck I stopped in the first place.

Road Trip: Rural Georgia

On Thursday, I veered of the beaten track as I made a diagonal from Augusta, Georgia, to my destination for the night, Valdosta.  I had intended to only be on state roads from Augusta to Macon and then hop on I-75 for the balance of the trip.  Instead, I found myself mostly on US221 and some state roads and I never saw I-75 till this morning.  I enjoyed the countryside, but was amazed at some of the towns.  I passed by a number of attractive homes as I made my way into Bartow, expecting a pretty neat looking downtown.  It was bypassed and looked all but abandoned as the row of attached brick buildings stood dormant.  Same thing in neigboring Kite.  Pictured above is one of the two abandoned grocery stores in the hamlet of Norristown.  I wondered when they may last have been a vibrant part of the communities.  Some of the larger towns had similar areas, but they were larger and partially used.

Pecan trees abounded and I passed by a number of cotton fields, too.  I had hoped to see some peach trees, but may have been in the wrong area.  I was more interested in this scenery than looking for Augusta National, believe it or not.  And my time in South Carolina was entirely on I-95 & I-20.  I drove Mrs Garmin crazy once I hopped off 95 in Florence SC, but I am glad I did.  It was getting dark as I made my way through Valdosta, but it looks like a place I would like to visit sometime.  It was a long 500+ miles with just me and the dog, but it was very enjoyable and it did not seem to last as long as it did.

Road Trip

 

One of the things I have done on the road trip to Florida is to play a round of golf with my brother-in-law.  Today, we played a round in Fuquay-Varina, North Carolina.  The course is called Crooked Creek.  And on the 11th hole, I got a hole-in-one.  I couldn't really believe it until I went and pulled the ball out of the hole.  Borrowed clubs.  Played in sneakers because everything is already in FL.

It has been a good trip so far.  I drove 513 miles on day one and stayed with my aunt & uncle in NJ.  My shih-tzu treed one of their cats on top of the drapes.  But, other than that, the visit was great.  First time there in 10 years.  The dog has done very well as a traveler.

Day 2 was only about 440 miles.  And he has adapted very well to staying here with my folks.  He finally started to eat again.  [Stuff other than dog biscuits.]  He will be car bound tomorrow as we aim for Valdosta, Georgia.  We'll pass through Augusta, but may not go by the golf course.  Don't want him arrested for doing something THERE.  Hope to grab a camera for my trek through SC & Georgia & may post some here.

Do You Have the Appraisal Blues?

More and more often, a loan will get to the final underwriting stage and there is a problem.  The underwriter does not like the appraisal.  Never mind that the borrower might have a debt ratio of 25% or a FICO score of 760, or even both.  Never mind that the borrower has a good sized down payment or a very stable employment history.  Never mind that the borrower has a boatload of reserves.  The appraisal is the issue of the day.

In speaking to an appraiser friend of mine the other day, he indicated that just about everybody wants almost everything to do with comparables as if it were the subject history.  The marketing time, any price reductions, etc ad nauseum.  And if there are not 3 comparables that have sold in the last 90 days, it could be eough to deep six the whole loan.  In some areas, it is difficult to find those comparables depending on the time of year.  And if the subject property is not in the dominant price range, trouble awaits.

We keep waiting for the pendulum to swing back.  And it does not seem to be moving in the opposite direction.  It means that the local banks & credit unions with the common sense and the ability to porfolio their loans are going to be the big winners in the near term.  It is important to indicate to your borrowers upfront that appraisals are being scrutinized & torn apart like never before.  It does not seem to matter that most of the unsound lending practices have ceased.  It is like the servant who was given one talent and buried it in the ground until his master returned.  Eventually, that master is going to wonder where the profits are.

I'm Off!

In a week or so, I will be heading south on a new adventure, having just given notice.  I am not sure where the next turn in this race will be, but it is sure to be fun.  I have spent all but my first 17 months of life living in Northern New England.  So, moving to Florida in this economic climate seems strange.  But, with it being around 20 degrees here today, I am sure that I will adapt to the actual climate as I make my way south.

I will see family on the way down and the last couple of days will be adventurous as I drive through South Carolina [where I have never set foot] and Georgia.  I look forward to seeing some of the countryside as I get off the beaten track and will drive by Augusta, Georgia, which is where I will depart from the Interstate for a couple of hours.  I may never get to see this part of the country again, so I want to enjoy my drive.  I will have a full car and one of our dogs as the other one flew down in January.

This may be a departure from the normal fare in this blog, but once I have embarked on my new employment venture, things will turn to things financial.  In the meantime, I'm off!