The key to being a successful lender is consistency…. That’s it!

Real Estate is a funny business.  You have a wide array of personalities that get into the business. You have part time, full time, some of the time, and hardly any time workers.   Over the past two years I have closed 459 transactions and here is what I have learned….

1. You need to work every day.  This is a full time job if you want to be successful.  You don’t stroll into the office at 10 or 11am…  You get to the office by 9am and start your day… I see people working into the wee hours of the night and do not get me wrong, every once in a while that is required, but most of the time I find that people are doing this because they are not EFFICIENT with their time during the day.
2. Loans are not hard.  It really is paint by numbers every loan is different but the process should always be the same.

• It starts with a loan application.  If you do a half ass loan application you are going to get half ass results
• Based on your application gather the proper documentation.  So as you can see if you do not do step one correctly, it can throw off step two.
• Talk with you clients, set the proper expectations.  Remember that people with buy 4 or 5 houses in their lifetime, and we do this 4 or 5 times a day.  Cover the basics like, don’t move money around, don’t deposit cash into your account, don’t take days off work, don’t buy a new car, let them know how fast things move once an offer is accepted, let them know they need to make this a priority as well, ask them how long they plan on being in the house…. what are their short and long term goals.  If nothing more, it shows you care about them as people, not just as a transaction.
• Create a system and follow it EVERY time.  My assistant and I prequel, collect documents, request title/escrow, order the appraisal, stack a file, request items, etc… the same on EVERY file.  It is the ONLY way we can identify where something went wrong IF something goes wrong at all.  If you are always changing the way that you do things, you cannot identify what IS and IS NOT working… There is POWER in consistency.
• Get to know your agents.  I mean really know them as people…  There is a lot to be said for respecting them, knowing them, and being able to communicate with them.  I NEVER like to let my agents down because I genuinely like them and view them as friends.  Of course you don’t want to mess anything up because there is a paycheck on the line but it comes from a different place when you actually KNOW and LIKE them,
• Take care of those that take care of you.  I could not do what I do without the help of my processor, my assistant, the funders, the loan openers, etc…  Every once in a while buy them lunch, give them gift cards, or simply say thank you.  This is a relationship business and I think all to often we forget this.
• Realize that “no” builds credibility.  All to often people are looking for someone to tell them yes.  This business is full of “yes men and women” who just tell everyone what they want to hear instead of what is reality.  It is not always easy to tell an agent that a buyer does not qualify for what they are looking for, or to tell a buyer that they need to do “this or that” to qualify…  What I find is that lenders tell everyone yes just to “get the business” and then deal with everything once they are in escrow and have everyone “hooked” (for lack of a better term).  This is how you ruin your name and give everyone a bad taste in their mouth.
• Invest in people.  For me, I personally like helping realtors grow their business.  I love working with realtors that treat this as a career not a job. We essentially are our own “brand”  If we think of the big picture there is so much that we can do… I have closed 40 loans a month and have realized the work that goes into that is not much more than closing 15.  It is all systems and consistency.  If no one ever took a chance on me I would NEVER have made it this far.  I have had people invest  a lot of time in me and I take it personal.  I do NOT want to let them down…  I am always looking for that next realtor that is wanting to do MORE than what most people think is possible because that is when this business is FUN!

 

It really is paint by numbers, if you can just remember that

1. Is Blue

2. Is Green

3. Is Red

4. Is Purple

The loan (picture) will change, but if you stick with that the end result will always be the same… A funded loan, with a happy realtor and happy buyer!!!   It really is that simple.

Real Estate is for Dummies

I love real estate!   So do a lot of people that I know but they tend to make it more difficult than it needs to be.  Loan Officers, Real Estate Agents and Buyers are all their own worst enemy.

Let’s start with the buyers…

• It is HUGE. This is probably the biggest purchase of your life so now is not the time to use a friend or family member as your real estate agent or loan officer just because you know them.  Agents do MORE than unlock front doors to show you a house so make sure they are knowledgeable.  Loan officers do more than take an application and give you a rate. Online banks or the “lowest rates” can often times spell disaster… Make sure you trust and respect your loan officer.   Have you been to happy hour, golfing or the beach with your “potential” agent or loan officer during the week in the last year??  If your answer is yes then RUN!  One of the biggest reasons loan officers and real estate agents are not successful is because they abuse the fact they are self employed and work part time.  This is why they get part time pay and more importantly get YOU part time results…  just think about it.
• Be specific.  Real Estate is SUPER competitive right now and houses are flying on and off the market like hotcakes.  You no longer have the luxury of looking at houses and thinking it over for a week or two.  By the time you decide to drive by the house again you will looking in at the new owners house warming party.  Think it over… How many bedrooms and baths do you want?  Two story or one story?  Big yard?  Little yard?  What school district?  Check Megan’s Law website if you have kids!!  Do you want to live on a flat street (hills suck for kids to ride bikes on, play sports etc… I am speaking from experience.)  Be quick but don’t rush.
• This is an exciting time.  Don’t be afraid to enjoy the process.  There was a time when buying a home was a prestigious event.  I think it is time we get back to that.  Make sure your team you hire to work for you (agent, loan officer, home inspector, etc…) know that you are the boss and take this as serious as you do!

Moving right along to the agents…

• The old saying, “you play how you look” fits perfectly here.  Don’t be afraid to put on professional business attire when meeting with clients.  All to often I see people in our industry (loan officers included, don’t worry I will get to them) in jeans and a wrinkled polo and they think they are dressed up. Let’s be honest, there is great money in real estate if you work it properly and I think it is time we all dress the part.  Take some of the commission checks you cash and invest in some dress shirts, slacks, business suits or blouses and step your game up.  Our clients may not say anything but trust me they think it.  If we don’t consider ourselves professional business men and women neither will the community we work in.
• Find a good lender.  A good lender is not the one who jumps when you say jump, or sits at every open house with you, or “helps” you with your marketing.  I cant tell you how many times I see realtors use a lender because they do whatever they tell them to do, or because they “help” them with their marketing.  Guess what, if they can’t close your deals consistently with little headache what good is their marketing doing?  All they are doing is getting your name out to more people and then helping you fumble the ball at the goal line… Congratulations you are on the fast track to ruining your reputation.  This is not to say that your lender should not help you out and be there when you need them, I am not saying that at all so please no hate mail agents 🙂     All I am saying is sometimes no builds credibility (write that down).   This business is not rocket science and it is nothing personal, but we are in a R.O.W.E. (results only work environment) so make sure you assemble the correct team and be sure to tell your loan officer nephew it is nothing personal, you just need someone that would rather work than go golfing in the middle of the day or head to Vegas on a Thursday.

Last but not least the infamous loan officer…

• 90% of you suck!  (let me preface this portion by saying I am going to be the most blunt here because I myself am and LO and see how horrible we are as a “collective” group everyday and it is sad).  For a business (Yes loan officers you are a business) it is no longer enough to create a business that is reasonably priced and adequately functional.  It must also be beautiful, unique and meaningful.  Use your brain…  This is a fragile time in our business.  We are far enough away from the mortgage melt down for people to realize we are on our way up, but still close enough that the lending industry all but requires us to check the label on our buyers underwear to get them approved. Set the proper expectations upfront!  I know this sounds obvious but so many loan officers out there start the process off on the wrong foot.
• The process: since a lot of people that do what I do don’t seem to understand it, let me spell it out for the consumer and you can take some free knowledge

1. Meet with your loan officer.  I know you are busy but if you can try to meet them in person.
2. Discuss your plans with the house,  how long you plan on being there, is it on the high end of your budget, how much money you have etc… Trust me this helps us structure a deal that works for YOU.
3. Gather the documents (below are the basics)

• 2 years Full Federal tax returns
• 2 years W2’s
• paystubs
• bank statements (all pages… trust me)

food for thought:  as a buyer don’t tell the loan officer what they need.  If they ask for it trust me, they need it.  All to often I hear clients say “the other lender I qualified with didn’t ask for that”… my response is “yet”.   Loan officers out there do the bare minimum upfront to make the process appear easy to the potential client so they don’t scare them away and by doing this they may get the client but I can almost assure you the process will be a nightmare and they will have a frustrated client because instead of collecting it upfront in an orderly fashion they are now doing it on the fly in a hurry because they need to close.  (for a great article, Google “the perfect loan file”  Forbes did a awesome job with this write up).

• We have to realize that this is a HUGE job we are entrusted with and treat it as such.  Buyers have thousands of dollars in escrow, real estate agents have big commission checks on the line so everyone is on edge to perform.  There needs to be a consistent process you follow for each transaction.   Until you create a step by step process that you mimic on every file you will have chaos.  And chaos is the anti Christ in real estate.
• Play with your buyers.  Joke with them.  Get to know them.  They are people and respond well to interaction trust me.  Don’t be a secret service agent.
• Take your agents to lunch.  Take them to coffee.  Stop by and just say hello… don’t take up their whole day.  Literally just stop in say hello see if they need anything and then leave.  Watch their minds be blown because loan officers don’t DO THIS!
• Let me tell you something I learned over the past few years.  You don’t have to care about your realtors and clients as people… you don’t that is just the honest truth.  BUT!   IF YOU DO…. there will never be a question about whether you care about their business.  I have two agents that I have worked with for years and have come to a place where I care about THEM.  It is no coincidence that we not only close a lot of deals together, but we (the buyers, the agent and myself) have  a lot of fun when we work together…  This is a relationship business.  Remember that.  Harness that. Run with that.  Change your business with that.

The end of the year is upon us.   Instead of taking time off like most of this industry does during this time, use it as a time to seize more of the market share.

Peace-

Nathan!

When opportunity knocks, make it ring the doorbell

I know people are always looking for the next best thing and a way to better themselves and their careers. When you are good at what you do and when you love what you do people will take notice.

Passion is contagious. People want to be around passionate people. You will be recruited. You will be sought after. This is tough because being wanted by someone, a business, a company or whatever is always flattering but you need to be able to step back and assess the situation.

This isn’t college anymore, it is not just the thrill of the chase anymore. Anyone can get the girl but is she all you think she is? Maybe. Maybe not! This isn’t just about being recruited or promised the world. Your decisions might have long or short term impact on you and those around you. Being courted is definitely a sign that you are doing something right but it does not always mean the grass is greener.

I am not saying the grass CANT be greener all I am saying is make sure the grass is real and not just artificial turf = empty promises.

Wait for that bell to ring! Make opportunity wait at the door for a bit… If it really wants you it will still be there when you get to the door.

10 things real estate agents need to know in this market

1. Find a lender that you trust and then let them do their job.  If you feel you have to tell them how to do their job, they should not be your lender.

• I get agents all the time that tell me to order the appraisal on a rush.  FYI, this is not new news.  Every agent asks for this so I order the appraisals right away on every file.

2.  If there are no comps to support the offer price that you wrote the contract at do not be surprised when it does not come in at value. 

• It is a very competitive market out there so I understand that every property has multiple offers and right now people are bidding above list price.  This does not mean that the seller is going to drop the value if it comes in low, and if they do it is the agents job to negotiate that.  The seller will always come back and say why did you offer that high if you knew it wouldn’t appraise???  We all know the answer…. To get your offer accepted but trust me, that will be their first response followed closely by “Does your buyer have the money to come in with the difference?”

3. No one wins if the deal does not close so trust the lender when they say they want max appraise value as well.

• about 75% of the time when an appraisal comes in low the agents all of a sudden forget that this is a team effort.  It takes the agents, the lender, the appraiser, title, escrow, the buyer etc… to make a deal go smoothly.  When an appraisal comes in low this is the time to really buckle down and work together.

4. Prep the buyer about a real estate transaction.  We as agents and lenders will do this thousands of times in our lives, the buyer may do it 3-5 times.

• Each transaction is roughly the same.  Provide paystubs, tax returns (all pages), bank statements (all pages) and W2’s.  no cash deposits!!!! This is all stuff that the lender should go over with the buyers but sometimes it is too late when they get to us.  Setting proper expectations can save days and sometimes even weeks on a transaction.

5. If you have a good relationship with your buyers see if you can get a copy of their financials on a PDF.

• how many times have you written an offer and had to have the buyers cross qualified??   If you are writing offers in this market I am going to say quite frequently.  I have two big investors that I am a preferred lender for and they require a cross qualification in order to accept the offer and so many times buyers miss out on the house that they want because they cannot get documentation over to me in time… If their agent had this they could send it over right away even though the buyer is stuck at work.  Offer accepted!  (we will need all the items mentioned in tip #4)

6. Rates are pretty much the same no matter where you go and loan officer comp plans have changed so the cat and mouse game of are you getting the best rate from your lender is pretty much gone.

• this is not 2004-2007 anymore.  Lenders are not really doing arm loans anymore (I do not remember the last time I did one), they are not sticking prepayment penalties on the loans etc…  Think about it logically… everyone gets their money from the same place so if something sounds to good to be true it probably is.

7.  FHA, VA and Conventional loans take the same amount of time to close if you have a good lender.

• Is each loan different, ya a little but if you have a good lender the time frames should not be an issue.  Write each offer with confidence.  I can close any loan FHA, VA or Conventional in 21 days or less so should everyone else.  If they cannot, find a new lender.

9. Have fun with your buyers.

• We make sure that we have fun and joke around with our buyers.  If we are relaxed, they are relaxed.  We do this everyday so there are things that we know are normal that the average buyer does not.

10. Once you find a lender that is good.  Be loyal.  These lenders that are good will make you and your transactions a priority if you are an agent that consistently brings them business.

• I have about 10 agents that bring me every deal.  I know how they work, and they know how we work.  There is a lot to be said for getting to know one another.  Each agent is different and wants different things throughout a transaction.  I can tailor each transaction to each agent after I have worked with them a couple of times.  Some agents want updates every couple of days.   Some agents just want updates when there is a problem.  Some agents want to come into the office.  Some agents want nothing other than a fast close.   Tell your lender what your 3 hot buttons are so they can make sure to meet all your expectations.

Real estate can be fun, buying a house is not and should not be rocket science.  Find that lender that you trust to get your deals closed and the lender that will treat your clients right.  This is a team effort whether you want to believe it or not…. No matter how good the agent, the lender, the escrow officer, the buyer etc… It will not be a smooth transaction unless everyone comes together and works as a team!!!

See link below, I was number 11 in the entire Country for 2012 FHA origination volume.  Bigger numbers coming for 2013…. Stay tuned 😉

http://www.scotsmanguide.com/TO/2012/fha_volume.asp

Don’t fight the funk…

No matter who you are, what you do, what you drive or what style of music you like, you know that you have found yourself rocking out to your favorite playlist on your way into the office.  You know what i am talking about… I mean really rocking out.  That rocking out where your head is bobbing, the feet are tapping, and your are signing like you are recording your debut album.

I am not really concerned about the signing, really what I am focusing on is that feeling you have deep down in your gut that you can do anything.  That music that is getting you totally amped to take on the day.  That feeling that no matter what the day throws at you, you are going to crush it…

For me, I listen to hip hop or rap on the way into the office.  I love the fact that they are talking about money, fame, hustling, being #1, grinding, being on top and doing it better than anyone before.  All these thoughts get me in the mindset to tackle any situation, customers, agents, processors, underwriters, agents etc… throughout the day.

Music has the ability to take you somewhere else if you let it.  The key is taking that energy that you have while you are in the car and carrying it with you throughout the day long after your engine has cooled off.  I actually will crank up the volume in my office and blast one of my favorite songs before I make an important call to an agent, buyer or seller… This ensures that I bring my A-game and all the positive energy.

Don’t fight the funk… Let the music take you away. 

I would love to hear comments on what your song is that takes you away….

Drive thru- F you!

Got your attention?

Do you ever see those people sit in the drive-thru every morning at Starbucks for 15 minutes?  Or at the bank?  Go to restaurants and never really talk to the servers and ask how they are doing?  Yeah, me too…

I go inside everywhere I go. I make conversation and get to know everyone because I like people and it builds relationships. My assistant Sophie always asks why I do that because it takes longer to go into the bank, or Starbucks etc…

My answer = I love going into Starbucks because I know everyone that works there.  They know me, my order, what time I come in, who my wife is, what I do for a living, my hobbies etc… These are called personal relationships.  Personal relationships are part of life and by simply going into Starbucks, the bank, restaurants, the dry cleaners, etc… and conversing with people I:

1. get to converse and meet people I otherwise would not have met

2. I expand my business because people always know what I do for a living (mortgages)

When people get to know you as a person it makes it easier for them to approach you for advice on whatever it is you do (for me real estate).  I cannot begin to tell you how many people I have ended up talking to for 45 minutes just because I bumped into them at one of these places.

You cannot be a secret agent or a ninja.  People need to know you, your name and what you do in order to request your services.  Next time you pick up a cup of Joe, snag a bite to eat, or pick up your clothes from the dry cleaners:

1. go inside,

2. ask the person behind the counter their name, and how they are doing.

3. repeat this step 5 times and watch the relationships start….

Sock it to me…

I think fashion says a lot about a person. Someone who is very mild mannered might be the person you see just wearing the khakis his wife bought him. The wild child might wear leather or sport a crazy hair style.

Me… Well I wear a shirt and tie every day to the office. Some might think that gets old and bland but I always find a way to throw in my own flavor. I am all over the place with tie/shirt combos and I must say I put together some pretty fly outfits, but one thing is for sure… You are always gonna find me with a fresh pair of socks. Take a look at the fun filled drawer at my house.

Try adding some color to your wardrobe and your life. It’s a good conversation starter… What’s your style????

Pencil in Success

You ever wonder how people got so succesful?  I do… when I see someone succeed I sit back take notes and figure out how I can implement what they do into my every day life.  

There are only so many hours in a day so it is 100% a level playing field.  BIll Gates has no more time in a day than I do.  Diddy, Mark Cuban, and Oprah all have 24 hours in a day… It is all what they do with the time we are all given.  This whole post is about a calendar.  They have stuff planned.  It is like clock work.  They wake up and have a schedule and they stick to it.  Have you ever seen an interview cut short because time ran short… I have.  Have you ever seen a celebrity being rushed to a car in a frenzy… I have.  Guess what these people that we all are watching and wondering how they did it have a plan and they stick to it.

Every single day I have ideas on how to grow my business and there is no doubt that it would work in my favor.  The problem is the time… Not that I dont have it, but I am still learning how to schedule it.  Every minute counts in the day… Every second lost at work is time I could have spent with my wife and daughter, time I could have spent with friends, time I could have spent at Crossfit, shout out to Crossfit Crowntown 🙂

I hear people say all the time that they want to make money but they are not willing to put in the work.  I also see some people say they want to make money, they get a little taste of it and then slack off.  Part of the work that is involved in being the best is not only the actual work in your field, but the brainstorming on how to work more efficiently and I really believe you need to plan…

Plan out your next two weeks down to the T.  Work, dinner, picking up dry cleaning, hair appointments, gym time, family time, alone time, making dinner, relaxing, grocery shopping, and everything else you can think of and watch your productivity shoot through the roof.  Productivy= results.  Results= Success. 

The art of the close…really???

A lot of times in business you hear people talk about how they can close.  They can sell ice to an eskimo, the clichés are endless…

Have we ever thought about being upfront and honest?  How about the truth for once?  I get so many people in my business (mortgages) that come to me with their guard up because they have heard all of the horror stories from the past 7 years.  Everyone knows that person that lost a house because they were put into a bad loan.  Everyone knows that person that was putting people into those loans.  Day in and day out I answer questions that people were told to ask by a friend or family member even though they have no idea what the answer they are looking for actually is.

I know for a fact that I lose business every week because I refuse to just tell my potential clients what they want to hear.  Unfortunately they will keep making phone calls until they find that mortgage lender that is so hard up for a deal that they will lie to get it. 

Instead I let people know I work for them.  I am a consultant, I ask questions and try to structure a loan to ones specific needs but in the end it is the buyers choice, we are simply here to guide them along the way.  I am kind of like that father that is teaching their child to ride a bike.  I run along side them to coach them, make sure they don’t fall on their face, and congratulate them when it is all over.

Think about how nice it would be if mortgage offices, car sales people, insurance agents, contractors, travel agents, real estate agents, mechanics, landlords, cell phone reps and whoever else you were buying things from could NOT lie to you… 

I have found if you treat people right the rest will take care of itself. 

 

“To Whom Much is Given,
Much is Required”

Two Ears One Mouth…

So the owner of my company always reminds me of this little quote.  “two ears, one mouth.  Use them in that proportion!”

I find myself guilty of this quite often not only in sales but in life.  Now I catch other people doing it to me and now I can often be found telling one of my assistants “there is a difference between listening, and waiting to talk.”  I was telling my assistant the same thing over and over but he was not retaining the information that I was giving him.

Think about everything we miss when we are just waiting to talk while someone else’s lips are moving. 

1. Do we miss the point of a story?

2. Do we miss a chance to learn something?

3. Do we miss the opportunity to learn something about a loved one, friend, or client?

4. Do we ignore our children and discourage them from opening up to us?

The answer to that is most likely YES but how will you ever really know because you were to busy structuring your next thought in your head.  I think that we can all be a better spouse, friend, salesman/ saleswoman and overall just a better person if we remember “two ears one mouth, use them in that proportion.” and “there is a difference between listening and waiting to talk.”

Honestly sit back for a few minutes and think if you are guilty of this…  You might be surprised!