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.

Clear Goggles = A Sobering Thought

I decided back in March of this year to stop drinking.  It was a decision I made on my own but the impact has been felt by all of those around me.  My wife never directly asked me to stop drinking, neither did my family or friends but I think they have shared in the joy it has brought me (us).  I can’t say this for sure or speak on their behalf but I think throughout this last year I have become a better husband, father, friend, boss, brother, son, and person.  Along with hard work, commitment, prayer and my friends/family I was able to harness my passion to be successful and “addictive personality” and shift it into a direction with no  booze involved 🙂

 In the day to day lives of many people we are constantly stressed out, freaked out, overwhelmed, tired, rundown, and in turn (myself included) drink to “escape” the pressures of everyday life.  My friend Kanye West made me think when he said “The plan was to drink until the pain over, But what’s worse, the pain or the hangover” in one of his songs…   I started to think about why I was drinking… It was no longer to have a casual drink with friends, it was too dull the stress, pain, and reality that came along with my work and drive to be successful.  I realized my drive to be successful was either going to be a good thing or a bad thing; and at that moment I realized it was up to me.  It was time for a change…

 

I reevaluated my life and what my goals were and more importantly why those were my goals.  I came to the conclusion that I don’t have to make a lot of money but I want to.  Once I verbalized that out loud I was able to alleviate the pressure… Don’t get me wrong I still want to be rich (like really rich) but now it is just fun.    I had put very high expectations on myself and in turn my “wounds” were somewhat self-inflicted. 

Positives of no drinking:

1. My relationship with my wife/family
2. Better focus at work
3. Better fitness
4. Better eating choices
5. More productive throughout the day (no Saturday morning hangovers)
6. Better creativity at work on how to achieve my goals
7. Acquired skill on how to deal with stresses
8. Deeper, more meaningful relationships
9. Clearer vision of where I want to go

Negatives:

1.none

I challenge everyone to reevaluate their reasons for doing what they do whether it is drinking or something else….  Life changing.

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!

A FIT body is a FIT mind, and a FIT mind can do ANYTHING (make money)

Physical fitness is a key part of life.

I have always been active throughout my life but as time has gone on and the career has kicked in and the family life has taken over, I think it is more important than ever to make being “fit” a priority.

I am currently involved in “Crossfit” at Crossfit Crowntown in Corona, Ca.  This is by far one of the most challenging, rewarding and motivating things that I have ever done.  I wake up every day at 4:30 in the morning to be at Crossfit at 5:15… By 6:30am the hardest part of my day is over and I am off to work and have a clear head to work with.

There are people from all walks of life that make this grueling, rewarding, community based activity part of their everyday life.  There are 60 year old men and women, mother and fathers, businessmen and women, father/son, high school kids, elite athletes, you name it they Crossfit.

Everyone comes together at a “Box” and for one hour a day has one common goal, to better themselves and in turn better their family life, their careers, their social life, their health, their appearance, their confidence, etc…  Everyday I see people go beyond what they thought they could do.  They break through barriers in the gym and I think this sets the tone for their life!!

I for one have seen a direct correlation with my fitness level and my level of production at work.  I have 3 assistants at work and have made it mandetory for all three to crossfit (two of which I pay for to do it) and I will put my team up against anyone in the entire country because they know no limits and this all starts every morning at 5:00am in the gym…  By the time we get to work we are alert, confident and ready to rock.

I see the same thing with these moms in our gym… They run around after 1,2,3,4 kids and still have the energy to knock out an intense workout.  I know for a fact that being a mother is probably one of the hardest/tiring jobs EVER! If my wife leaves for a few hours I am counting the minutes until she returns because my two year old daughter is CRAZY!

Being a business man and always looking at what people do for a living, how succesful they are, how passionate about their life they are, I have found an astounding common denominator at Crossfit…  Everyone is very succesful, passionate, happy,and just full of energy… Coincidence???   I think not.

Like I tell my assistants everyday.  “A fit body is a fit mind, and a fit mind makes money!!!!”

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….

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. 

Fear of change = fear of life

I hear people say all the time that they fear change.  What is it that they really fear?  What if the change was for the better?   Why would anyone fear that… I think people fear the unknown, and failure.

When I was younger there was a small yogurt shop off imperial in Yorba Linda called Penguin’s that we used to go to as a family.  I remember one time my dad said to me that he would love to open his own business.  He also stated that if you are going to try new things it is good to do it when you are young because you have nothing to lose, and if you lost your @$$ on it you would have time to recoup your losses.  Those words my dad told me I never forgot (although I don’t think I ever told my dad I still think about that), and I know find myself in a position to want to make some moves, but need to make sure I set myself up for success.

Change is awesome if it is for the better.  So if you are going to change something make sure you come out on top.  How do you do that?  Planning, research, determination, and a mindset that you cannot fail is crucial.  You have to go into something with a little bit of an edge, a little bit of the “my $h!t doesn’t stink mentality” in order not have a reservation, or the hesitation that some others would.

How does one know what they are capable of if they never push their limits?  Here are some things to think about:

What I tell these young people is, the world is not as dangerous as the older generation would like you to believe. Anyone I know who has ever taken a risk and lost a job has ended up getting a better one two years later. – Jonathan Kozol

Once we believe in ourselves we can risk curiosity, wonder, spontaneous delight, or any experience that reveals the human spirit. – e. e. Cummings

It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win. – John Paul Jones

Only those who will risk going too far can possibly find out how far one can go. – T. S. Eliot

You don’t concentrate on risks. You concentrate on results. No risk is too great to prevent the necessary job from getting done. – Chuck Yeager

REALLY ASK YOURSELF WHAT YOU WOULD DO IF YOU KNEW YOU COULD NOT FAIL!  MAKE A LIST OF 10 THINGS… SEE WHAT YOU CAN DO AND WATCH YOUR LIFE CHANGE.

3-2-1 GO!!!!!!!!!!!!!