Archive for November, 2007

Simone

Thanks to Sellsius this week for bringing us not one, but two explicit posts this week, Real Estate Porn, Broker-Agent Edition and Real Estate Transparency: Real Estate Agent Fired for Sexy Slideshow, which allows me the perfect segue to share, once again, more news from the lovely Ravenna, Queen of the Burlesque Realtors.

If you happen to be in Seattle on December 19th, don’t miss Ravenna and Gal Friends in a fundraiser called “Christmas Stockings: A Burlesque Benefit” to support our troops. It’s at the The Rendezvous Jewelbox Theater and there are two shows: 7:00 and 8:30 pm
21+ $15.

Christmas Stockings

Through the sale of their vintage style pin-up images, THE PIN-UP ANGELS raise money to send comfort packages to U.S. troops serving overseas. The Angels do all the work to collect donations, shop for the necessary items, organize the packages, and ship ‘em out to the troops in need. After sending 200+ Christmas care packages, THE PIN-UP ANGELS continue fund-raising for this on-going effort.

Don’t miss this happenin’ event hosted by Trixie Lane, the Queen of Shame!

Live music, scantily-clad girls and real estate. What more can you want for the holidays?

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ePERKS

I got a call today from a salesperson at ePERKS. He wanted me to sign up for a program to receive leads off their website. If I bought one zip code, the fee would be $129.95 a month, plus an 18% referral fee back to them for every closed transaction.

Here’s the pitch from ePERKS:

ePERKS is a combination of search directory and search engine for major services. As a result there are directory membership fees as well as referral fees for when a deal is closed. Pricing is uniform across the United States and there are 3 simple programs that encompass the service.

This program provides complete exclusivity to the real estate professional, as members of this program are made the sole representatives for their selected areas of coverage. No other program listings are displayed, as the Exclusive Ownership Listing supersedes and eliminates all other listings.

100% Ownership of Selected Zip Codes (no other listings)
Supersedes and Eliminates All Other Listings
$129.95 a Zip Monthly
$150 Setup Fee
19% Referral Fee (80% given back to consumer)
No Extended Contract
Month to Month Billing
Cancel Anytime
Backed by ePERKS Guarantee

They also had other programs available where I’d share the zip code with other agents, for lower fees of $59 to $89 a month. Another black hole designed to swallow your dough, but a shallower one, I guess.

I wasn’t particularly interested, but I thought I’d just look it up to see what some other bloggers were writing about the company.

The funny thing is, all I could find were “sponsored” posts. Posts that were bought or placed for payment in the attempt to jumpstart some viral marketing. Apparently, their PR department has been busy paying bloggers to “write” stories, most identifical to the other, culled from a press release to collect a quick $10 or $20.

Pay per Post

Paid review: ePERKS on RhythmsWithRight

Paid post: Real Estate Deals and Incentives at ePerks.com from Current World News

Paid Review on Shadowscope

Paid post: Rebate real estate brokers from Infektia

Does it work to pay bloggers to say nice things about your crappy lead-generation website? I would think a good PPC campaign would be a more effective way to reach customers, without losing credibility in the marketplace.

Disclosure: I wasn’t paid a dime for this glowing review.

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In an effort to entice customers to become investors, Iggys House and BuySide Realty sent out an unsolicited email blast to 30,000 individuals this week, who had registered on their sites to either look at homes or sign up for their free listing service.

Iggy\'s House

Dear Future Investor,

As you may know, Iggys House, Inc. is in the process of going public. Iggys House is the parent company of BuySide Realty. Some of our customers have expressed an interest in investing in our initial public offering.

We started our “road show” for the offering, and expect to continue it over the next few weeks. We have created an online version of the road show presentation. Here is the link:

Retail Road Show

The following is a summary of our proposed public offering. You should carefully read and consider the information contained in our preliminary prospectus for the offering before making an investment decision.

Click here to view our prospectus.

We have filed a registration statement with the Securities and Exchange Commission in connection with an initial public offering of 1,400,000 units, with each unit consisting of one share of our common stock, and one Class A warrant and one Class B warrant.

The initial public offering price of the units is $6.00 per unit.
Each Class A warrant entitles its holder to purchase one share of our common stock at an exercise price of $7.50 (125% of the initial public offering price) and is exercisable for 12 months following the closing of the offering. Each Class B warrant entitles its holder to purchase one share of our common stock at an exercise price of $9.00 (150% of the initial public offering price) and is exercisable for 36 months following the closing of the offering.

We have applied to have our units, shares of common stock and Class A and Class B warrants listed on the NASDAQ Capital Market under the ticker symbols “IGGYU,” “IGGY,” “IGGYA,” and “IGGYB,” respectively.

Our initial public offering will be undertaken pursuant to a firm commitment underwriting. The managing underwriters are Northland Securities, Inc. and Bathgate Capital Partners LLC.

How to Invest
If you wish to learn more about how to invest in our initial public offering, please contact us at IPO@IggysHouse.com, and we will direct you to one of our designated underwriter representatives.

Best regards,

Joseph J. Fox
Chief Executive Officer
Iggys House, Inc.

The Retail Road Show is about a 20 minute advertisement for their business, with all the bad, scary stuff left out. Some not-to-miss items on the prospectus: Page 7 financials elaborate the real estate sales income of 570K v.s. company losses of $5 million dollars, and you’ll enjoy page 62 where CEO Joseph Fox explains why he paid himself and his brother a $100K bonus in January, 2007.

The company said it intends to use the proceeds of the IPO for general corporate purposes and to repay its $1 million bridge note and any outstanding debt. I suppose this will also get Avi Fox off the hook for that $1.2M line of credit he guaranteed with Cole Taylor Bank.

Though they apparently have a lock-up agreement of 360 days, I imagine the founding team already has an exit strategy in place to liquidate their portion of the stake in the firm as soon as legally possible to get back some of their dough they’ve sunk into this losing proposition.

Iggy’s House: An IPO Joke?

Start-up Web brokerage plans IPO in tough housing market, Chicago Real Estate Daily

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Jack London, 1902

Jack London, who died today on November 22nd in 1916, was an American author most famous for writing The Call of the Wild. He was a pioneer in the world of commercial magazine fiction, and he was one of the first Americans to make a lucrative career exclusively from his writing.

One of London’s most famous writings is The Scab“.

What is a scab? Simply, a person who purports to do the same amount of work as another person, but for less money. According to Jack London, anyone who undercuts another person, as far as wages or compensation for labor, may be considered a “scab”.

In a competitive society, where men struggle with one another for food and shelter, what is more natural than that generosity, when it diminishes the food and shelter of men other than he who is generous, should be held an accursed thing? Wise old saws to the contrary, he who takes from a man’s purse takes from his existence. To strike at a man’s food and shelter is to strike at his life; and in a society organized on a tooth-and-nail basis, such an act, performed though it may be under the guise of generosity, is none the less menacing and terrible.

It is for this reason that a laborer is so fiercely hostile to another laborer who offers to work for less pay or longer hours. To hold his place, (which is to live), he must offset this offer by another equally liberal, which is equivalent to giving away somewhat from the food and shelter he enjoys. To sell his day’s work for $2, instead of $2.50, means that he, his wife, and his children will not have so good a roof over their heads, so warm clothes on their backs, so substantial food in their stomachs. Meat will be bought less frequently and it will be tougher and less nutritious, stout new shoes will go less often on the children’s feet, and disease and death will be more imminent in a cheaper house and neighborhood.

Thus the generous laborer, giving more of a day’s work for less return (measured in terms of food and shelter), threatens the life of his less generous brother laborer, and at the best, if he does not destroy that life, he diminishes it. Whereupon the less generous laborer looks upon him as an enemy, and, as men are inclined to do in a tooth-and-nail society, he tries to kill the man who is trying to kill him.

Before someone writes in complaining that this definition of a “Scab” is defamatory, consider the following:

After God had finished the rattlesnake, the toad, and the vampire, he had some awful substance left with which he made a scab. A scab is a two-legged animal with a corkscrew soul, a water brain, a combination backbone of jelly and glue ….

This passage figured in a 1974 Supreme Court case, in which justice Thurgood Marshall quoted the passage in full and referred to it as “a well-known piece of trade union literature, generally attributed to author Jack London.” A union newsletter had published a “list of scabs,” which was granted to be factual and therefore not libellous, but then went on to quote the passage as the “definition of a scab.” The case turned on the question of whether the “definition” was defamatory. The court ruled that “Jack London’s… ‘definition of a scab’ is merely rhetorical hyperbole, a lusty and imaginative expression of the contempt felt by union members towards those who refuse to join,” and as such was not libellous and was protected under the First Amendment.

Jack London wrote The Scab in 1903 and died in 1916 at the age of 40…..

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HGTV Channel

In a brilliant move, HGTV has parlayed their well-known brand of home-and-garden based television and moved into online homes sales. In beta stage and not yet cross-linked from their site or promoted on the channel, Front Door has the potential to attract a huge amount of traffic from homebuyers and sellers already familiar with the brand. HGTV benefits from a 24-hour a day “infomercial” from not only HGTV, but the Fine Living Channel and the Food Channel too. It’s a round-the-clock love fest of beautiful homes, fabulous remodels, great recipes, and cheerful hosts and hostesses making home repair, gardening, decorating, scrapbooking and crafts look exciting.

They’re scraping from several sites and not offering links back to individual agents, but inquiries DO go to individual agents representing the properties, so they’re not selling leads (yet). Coldwell Banker and CitiCard seem to be the largest advertisers so far, with banner ads on every page. Lots of white space left for more, however.

Anyway, it’s a great idea and a brilliant marketing move and a great example of how to build upon an already well-respected and popular brand.

Oh, and don’t forget to set your TIVO for this HGTV winner.

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Why do I get the feeling that this and this are just sort of expanded online resume’s?

They read like someone getting their ducks in a row for the next employment opportunity.

Since they’ve brought in barely $3M this year from real estate sales, they’ve still got some dough left, but not much. As intimated in the remarks, they may run out of money soon.

But these essays and guest posts scattered across the internet are providing a framework for another position in some high-tech firm. By carefully laying everything out for all to see, one can write ones own history while moving through the process, and create an online resource perfect for the head-hunter looking for a new CEO.

HR can easily see that the business plans were sound. Real estate was just the wrong product, unmanagable and high-touch instead of high-tech. The CEO will not make that kind of mistake again.

And if the business flounders, one will be inculpable and have no blame, as the business plan and theories were faultless, laid out for all to see in their transparent glory. Fault will lay with the entrenched real estate industrial complex or the NAR monopoly or because the idea was ahead of its time or there were unforseen circumstances in the marketplace or fill-in-the-blank.

The best politicians parlay their connections into enviable positions of authority as captains of industry when the time comes that they’re no longer in office. CEO’s and lesser executives will do the same.

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Christopher Hitchens represents conspiracy theories as the ‘exhaust fumes of democracy’, the unavoidable result of a large amount of information circulating among a large number of people. Other social commentators and sociologists argue that conspiracy theories are produced according to variables that may change within a democratic society.

Conspiratorial accounts can be emotionally satisfying when they place events in a readily-understandable, moral context. The subscriber to the theory is able to assign moral responsibility for an emotionally troubling event or situation to a clearly-conceived group of individuals. Crucially, that group does not include the believer. The believer may then feel excused of any moral or political responsibility for remedying whatever institutional or societal flaw might be the actual source of the dissonance.

So, it may be a coincidence that events of a certain importance happened on the first day of the NAR conference, however, on some occasions particular conspiracy allegations turn out to be more than a mere alignment of the planets.

Some argue that the reality of such conspiracies should caution against any casual dismissal of conspiracy theory. Many “conspiracy theory” authors and publishers, such as Robert Anton Wilson and Disinfo, use proven conspiracies as evidence of what a secret plot can accomplish. In doing so, they attempt to rebut the assumption that conspiracies don’t exist, or that any “conspiracy theory” is necessarily false.

However, it is just so odd that NAR convention-goers are witness to the eerie collision of events that cause 1000’s of Realtors to converge in the same city, on the same day, at the very same time that the New Frontier Hotel, yes, the location of Elvis’ first performance in Las Vegas, implodes upon itself.

Conspiracy or coincidence.

You decide.

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Dominion Enterprises, parent company for Agent Advantage, eneighborhoods.com, Homes.com, Number1Expert and Harmon Homes, has expanded its “pay per lead” business through another company they own, Advanced Access.

AA announced today a new program called “LEADmore” which is offering “guaranteed sales leads” to subscribers.

They say they will design, set-up, and then harvest the leads, reviewing each specific lead for authenticity and acting as a manual filter for spam or other leads otherwise not deemed legitimate. Upon authentication, the lead will then be forwarded to the client in that agent’s area of concentration.

When asked for further clarification, AA reps said they would create a custom webpage and promote that organically and using PPC. They would then sell those leads through this program at a pre-arranged monthly fee.

The good news? AA represents that it’s leads are “guaranteed” and it’s a month-to-month contract with the chosen tier package being charged automatically unless the agent cancels the contract.

The bad news? The website developer and hosting company is actually competing for customers with their own clients.

The other bad news is the cost.

Tier 1: 10 Guaranteed Leads: $499.95

Tier 2: 20 Guaranteed Leads: $899.95

Tier 3: 30 Guaranteed Leads: $1,199.95

Other “pay per lead” companies such as House Values have a hard time delivering even their guaranteed 2-4 leads a month, so I’m not sure how AA is going to deliver 30, but it will be interesting watching them try.

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I have just been informed about a new business opportunity to combine two of my favorite interests in one business venture. It could involve relocation to another part of the country, unless I move the inventory here, which is entirely possible. The present owner combined real estate sales with his vast collection, and I could actually do the same thing here in Seattle, if I were to purchase these items and relocate them here.

The inventory is being sold by Mr. Bill Beeny, a real estate broker and owner of Beeny Real Estate, 55 miles west of St. Louis in Wright City.

Real Estate Office and Inventory slide show

Ebay Listing

Inventory to be auctioned 11/9/07

Roadside America

**UPDATE**

I lost my bid for a new purpose in life, but you can read about the lucky bidder here.

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On Monday, HouseValues reported a third-quarter loss of $900,000 and revenue of $13.8 million, which was down from $21.1 million for the same period last year. This follows news from July that they had laid off 100 workers, which was about 1/3 of their workforce.

The same day that they released news of their $900K loss, HouseValues agreed to pay $51,000 in costs and attorney fees and revamp some of its business practices in order to settle a case that alleged that the Kirkland company’s real estate lead generation services violated Washington State’s consumer protection laws.

As part of the settlement, the company agreed not to misrepresent the quality of leads it provides to real estate agents as well as give better disclosure of its subscription term. It also will not be permitted to charge an early termination fee unless it is clearly disclosed. The Attorney General’s Office said that the leads provided by HouseValues were not of a high quality and the company locked real estate agents into restrictive agreements.

According to the earnings announcement:

“Revenue declined due to fewer customers and lower average revenue per customer. The company believes that agents reduced their investments in marketing as transaction volumes continued to slow in many major markets.”

Maybe. It could also be that revenue declined because homeowners can get free home valuations online now and are getting too smart to enter their contact info into an online form to be sold to the highest bidder. Or maybe it’s because agents are getting smarter too, and are beginning to complain about inferior or bogus leads being sold to them by a strong-armed sales staff.

Rip-Off Report on Housevalues

John Cook posted copies of the complaint and consent decree online at his Venture Blog.

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Focus on the Family

This will teach me to surf around strange websites at odd hours of the day……

Single Female Seeking Home Ownership, Part 1 From Boundless Webzine, a website from Focus on the Family.

You may also be interested in Part 2. Here’s a quote:

I am saying that the attitude of extreme independence that characterizes many of the decisions young singles make today — about real estate and lots of other things — is incompatible with Christian marriage.

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