Tough Love

Some of you think a trade association has a duty to enhance the real estate business or protect the status quo, while others think we shouldn't exist at all. I would argue, we fall somewhere in the middle – part of our role is to provide you with information and insight so that you can devise ways to smash the status quo before the forces of capitalism, demographics and technology do it to you. However, it's not enough to simply provide information without some context for the information. It is up to members, however, to figure out how to use the information and apply it to the trade.

About a year ago we published an article asking agents to reconsider their decision to pursue a career in real estate. We did not base that unusual statement on a desire to see Association revenues fall, but instead on a broader fiduciary concern about the long-term health of our client base. Minnesota REALTOR® staff has stated publicly, on numerous occasions, that there are simply too many people chasing too few transactions (in Minnesota and across the nation) which have the effect of diluting the compensation of those professional full-time agents.

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The State of Commercial Real Estate Finance

By Dr. Thomas A. Musil

The following interview addresses investment property finance. The lenders participating in the panel discussion are: John Davis, Collateral Mortgage, Tony Navarro, Associated Bank and Erik Schwegler, Crown Bank.

Demand for investment real estate continues to be robust. Increased investment property sales prices and declining vacancy levels have created a steady flow of investors seeking to acquire or develop all types of investment property.

However, recent default problems in the sub-prime mortgage market have created tighter mortgage underwriting standards for all types of real estate. Investment properties have not avoided this increased lender scrutiny. Lenders are taking a closer look at both the loan applicant and the investment property prior to making a commitment. The risk adverse investment lending environment has also created higher fees, increased interest rates, and increased down payment requirements.

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Minnesota REALTOR® District Days

Interested in finding out about the real estate issues impacting our industry? What if you could here it straight from the people who have been elected from your area? What if you could listen to this discussion in a location near your home/office? The Minnesota Association of REALTORS® is conducting a series of meetings starting this Fall so REALTORS® can meet with their legislators in an open forum setting, in the Districts they represent.

The first "District Days" event is being held in Duluth on October 24th. The session begins at 10:00am and concludes at 12:00 noon. Invited legislators include Senator Tom Bakk, Senator Yvonne Prettner-Solon, House Majority Leader Tony Sertich and Representative David Dill.

Other District Day Events are being held in Fergus Falls and St. Cloud on October 31st and in Bemidji on November 7th. The cost for the program is $20 and CE for the events is PENDING. You can register online at www.mnrealtor.com under education.