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Be Accountable

February 9, 2017 By Chance Leave a Comment

Being an entrepreneur often means being on a metaphorical island all by yourself. Not very many people understand how your time is pulled in a myriad of directions, employing skills (or sometimes lack thereof) that you didn’t know you had, and becoming a jack of all trades while only a master of one. It’s not unusual to see the tasks that you really need to get done get set aside in favor of whatever you feel needs to be done right this second. Naturally, as soon as you put that fire out, the next one pops up. The result is that you continue to delay the things that drive your business while you take care of minor things to keep your business running.

The problem, as I see it, is not a delegation problem or a time management problem. Too often, the things that are distracting you from accomplishing your priority tasks are things that require it be you and need to be done in a timely manner. In my opinion, this is an accountability issue. Generally speaking, unless you have a true partner, a business coach, or a mentor relationship in place, you are probably also responsible for holding yourself accountable for your actions. I think that is a problem when it comes to 99% of the people out there. It’s hard to come home after a 20 hour day and say you didn’t work hard or get things accomplished, even when you didn’t accomplish the things your business really needed for you to accomplish.

So, how do you, in a world of real distractions, set everything aside and focus only on the tasks that truly need to be accomplished?

You have to, as far as I can see it, find a way to be held accountable. The problem with that is most entrepreneurs also don’t really care for being held accountable and so they seek out someone who will act like they are holding them accountable, but really is just having a five-minute conversation with them. What the entrepreneur struggling with accountability issues needs is someone who will, legitimately and with a blow torch, hold their feet to the fire.

So, who is that person? It depends. I think there are more examples of who that person isn’t than who that person is. That person isn’t, usually, your spouse. It should never, in my opinion, be an employee. It usually isn’t your best friend, brother, sister, parent, or anyone else that either a) doesn’t understand what you’re really doing, and b) isn’t tough enough to hold you truly accountable. Frankly, I think that the best person for this job is a coach. Because they are independent, they can do or say whatever it takes to get you to do the things you need to do. Moreover, because you pay for them, you are more likely to get your money’s worth. It’s kind of like the difference between getting a gym membership and hiring a trainer.

The bottom line is this: if you’re struggling with achieving the things in your business that you need to do to be successful, I believe an accountability partner is the key to getting back on track. Try it for a few months and see if it works for you.

Book Review: The Miracle Morning for Real Estate Agents

September 26, 2016 By Chance Leave a Comment

The second book in our brokerage’s Book Club is The Miracle Morning for Real Estate Agents, an adaptation of Hal Elrod’s bestselling The Miracle Morning. On this version, he gets help from Michael Maher, Michael Reese and Jay Kinder. I swear when I ordered this for our crew I had no idea that it actually picked up the same story from our first book, Seven Levels of Communication, which I reviewed here.

Now, in fairness, while I found this book very useful, you have to take what I say here with a grain of salt. Go back and look at the time stamps on these posts. I am clearly not a morning person. If this had been named The Miracle Midnight for Real Estate Agents, it would have been perfect for me. That being said, this is a small book packed with valuable info and an easy ready because of the parable format similar to our last book.

The book revolves around a pretty simple acronym that will walk you through a very solid morning routine that is not only designed to put you in a powerful mindset for the day, but will also probably make you healthier, both mentally and physically. I can tell you that by just putting two of the items into my morning routine, I can feel the difference in how I approach the day. Oh, and it took about five minutes to do them both. Seriously, it’s that easy. Other parts of the routine I do at different times of the day and, still others, I need to work on.

Despite the fact that this story picks up after Seven Levels of Communication, I would probably recommend someone read this one first, get the routine to the habit stage of acceptance, and then read Seven Levels. I think you would be more prepared for taking on the things in Seven Levels if you were already doing the things in Miracle Morning. The mindset and attitude that will result from taking the steps in this book will make your ability to digest and execute the things from Seven Levels much easier.

In a business where it is easy to get frustrated, get complacent, and/or just get lazy, executing the morning ritual you find in this book is a nearly foolproof way to keep yourself focused and moving forward. I’ve said it many times, but your mindset drives your attitude which drives your success and this book will teach you how to start each and every day with a bulletproof mindset. Go read it and start implementing the steps today!

Next month’s book is Start With Why by Simon Sinek. Give it a read and let me know your thoughts.

Getting Ready to Get Ready

September 17, 2016 By Chance Leave a Comment

Have you ever found yourself facing a project to complete but, instead of starting, first you feel like you need to do some research, or get organized, or clean your office? Or maybe it was a personal goal like a diet you wanted to start, but you just need to get through this weekend first because you’re going to be out of town? Or, my personal favorite, have you ever been asked if you were ready to start doing (insert thing you’re supposed to be doing here) and simply answered no because you before you start you needed to do (insert thing you think you need to do first here).

At the end of the day, it’s all procrastination.

The question that matters for the purpose of this post, though, is why. Why are you putting off what you know you need to do, what you know you need to do? In my experience the answer generally boils down to one of two things, or sometimes both. The first is laziness and the second is a desire or need to have whatever the project is 100% perfect before unveiling it to the world. The first one is the easiest to tackle, so let’s get that out of the way.

Laziness

If you’re lazy and you know it clap your hands. Hopefully you aren’t clapping your hands right now, but some of you may be. So, without coming off as horribly rude, if you did, update your resume and get out of here. Real estate is a 24/7 hustle. Sustained success in this industry is not for the lazy. I hate to burst your bubble, but there are no overnight successes and HGTV isn’t waiting outside your testing center ready to give you a show as soon as you pass your licensing exam. Truth be told, we have enough lazy Realtors in the industry. We don’t need another one.

So, you can either get your ass up and go to work or get out of the way of those who do. The choice is yours.

Now, let’s get to the real point here.

Getting Ready to Get Ready

The idea of getting ready to get ready, or procrastinating in exchange for action is neither a new concept nor is it really unnatural. It’s why procrastination is such a problem for so many people. I mean, how many hundreds of books have been written on the subject? When you see people who seem to accomplish a great deal, it is usually not a natural thing. It’s usually a practiced skill, like any other skill. But there’s more to it than just having the initiative to tackle a project. Anyone can start on a project. The key is to finish your project, at least enough to launch it.

It Will Never Be Perfect

Do you own a smartphone? If you don’t, we need to have another discussion, but for now we will assume you do. Every couple of months I’m sure, like I do, you get a new update to the software on your phone, right? Of course you do. So, here’s the question. Why didn’t Apple or Samsung or LG or hopefully not Blackberry wait until every single aspect of their software was 100% perfect forever before releasing it? I mean, aren’t these updates just an admittance of failure?

No, of course they aren’t an admittance of failure. They’re a normal part of auditing systems and updating them for what is relevant at the time. Why then, do we feel like we have to have every aspect of a project perfect before releasing it? Our database has to be perfectly organized, classified, and every aspect of our follow-up system in place before we would even consider the idea of sending an email. We wouldn’t dream of publishing a website without every single last detail being perfectly in place. But why?

How about instead, as you organize and classify your database, you also call them? How about you put your follow-up program to work right now instead of waiting until you’ve written or created every single piece of content that will go out over the next 24 months? The bottom line is that it will never, ever be perfect. Ever. You will make adjustments as you go along or you will find yourself with the most perfect yellow pages ad of all time. In the immortal words of Nike, Just Do It!

You Don’t Know What You Need Until You Do

Until you start, you won’t really know what you need to do to finish. You can plan and scheme and dream, but until you get your hands dirty and actually start, you won’t know what you need to be able to finish. Dan Sullivan, executive coach and co-host of the popular 10X Talks podcast, calls it the 80% Principle. Based on all of the plans you make, you’ll probably be able to finish about 80% of your project. 80% is good enough. Launch it and then put the finishing touches on it. Seek counsel, audit, adjust, and continue to do so at regular intervals to ensure that your plan stays on track for the long-run.

Its A Marathon, Not A Sprint

I get it, you’re a Type A personality. I know. We all are. You’re a control freak. We all are. You feel like unless it’s ready it will make you look unprofessional. I get it. We’ve all been there. Remember, Rome wasn’t built-in a day and neither will your business be. Ten years from now you will likely look back and laugh at how much you worried over this stuff. The point is that if you never start the journey, you’ll never know. Sometimes the first step is the hardest, but, once you make it, each ensuing step becomes easier and easier.

Very Few Others Are Doing It

To wrap this up, let me drop a bit of unadulterated honesty on you. 90% of your competition isn’t doing it. Doing what you ask? Anything. Truly, they aren’t. Less than half of your competitors are using a CRM (and most probably aren’t really using one, they just pay for one), fewer than 10% use video, and the list goes on and on. Almost every statistic available on what agents do for follow-up and marketing is pretty embarrassing, really. So, as you sit there fretting over whether or not whatever you’re working on is good enough, just remember that 80% of anything is way, way better than 0% of nothing.

Book Review: Seven Levels of Communication

September 14, 2016 By Chance Leave a Comment

From the last post, you know that our brokerage has started a monthly Book Club. Our first book was Seven Levels of Communication by Michael Maher. As promised, a couple of times, here is my review of the book.

Bottom line: If you’re in sales or marketing, you need to read this book.

I have a general rule to judge the quality of a business book – If you can take two things out of a book and apply them to your business, it was worth the read. In the case of Seven Levels of Communication, if you can’t take a dozen tips out of this book, read it again. Seriously. It’s that good. Did I mention that I was serious? I don’t want to sit here and gush over 150 pages of paper, but this might be one of the best business books I have ever read.

First, Maher does a great job writing in parable format. The book follows a real estate agent, Rick Masters, as he transforms from a near drop-out to top producer through a coaching program that walks through the 7 Levels. I’m a huge fan of story-telling in non-fiction and Maher does it in a way that is both engaging and lacking arrogance. Honestly, as valuable as the information is, I’m not a fan of books by people like John Maxwell because they tend to be too much “Look at me and what I’ve done and you should be just like me.” This book is written from a perspective of a Coach and, as such, comes off as genuine and truly helpful.

Now, about the tips that the book gives you. The information contained in the book isn’t a reinvention of the wheel. To tell the truth, I imagine that the end product that Rick Masters becomes looks a whole lot like top salespeople from about 30 years ago. He’s more personal, caring, and doesn’t rely on technology and other new gimmicks to build his business. Instead, he relies on tried and true messaging and communication, but he does it with a plan and strategy.

The other great part of this book is that none of the strategies are really that hard to implement or expensive. The result of these strategies is a business that every agent dreams of, one built on referrals. The trick, like with everything else, is that the strategies have to be implemented with a personal touch and executed with discipline and consistency.

So, here’s the deal. I’m not going to reveal everything in the book because you really need to read it. I will tell you this, you will probably want to read it twice. Once you’ve read it once, you can go back
and take it tip by tip to implement in your business. Trust me, it’s worth it.

In conclusion, if you feel like you’re in a rut and need to get out of it, or your new to the business and want to get a jump-start, or are already producing at a good clip and want to take it to the next level, you need to read Seven Levels of Communication. Even if you only get a couple of things out of it or only implement a couple of the strategies, you will without doubt see the results in your business. You can pick up a copy on our Reading List page. Do it.

Our second book, Miracle Morning for Real Estate Agents, will be the next book review. You can also pick it up on the Reading List page.

Real Estate Book Club

August 31, 2016 By Chance Leave a Comment

In the words of Harry Truman, “Not all readers are leaders, but all leaders are readers.” I love to read, but have found that as we get busier and extra time gets harder to find, my reading time has started to vanish. So, we made the decision in our brokerage to start a book club. Now, I have to keep reading so that I can participate with our team. I’m still wishing I was reading more than one book a month, but at least I’m getting it done.

So, I figured I would invite you to participate with us. We’re already on month two, so you’ve got some catching up to do. Last month we read 7 Levels of Communication by Michael Maher. Generally when I read a business book I look for one or two things to take away from it and try to apply in life or business. Now, I could be a real smartass and tell you that I took 7 things away, but I won’t. I took way more than 7. I’ll be writing a full review soon, but this is a book you should buy today!

This month, we are reading Miracle Morning for Real Estate Agents by Hal Elrod with some help from a few others. It’s a take off of Hal’s book Miracle Morning that is designed specifically for Realtors. I’m not finished with it yet, but so far it is pretty darn good. It’s particularly challenging for me given that I am in no way, shape, or form a morning person. I need someone to write a book called Miracle Midnight for Real Estate Agents. Maybe I’ll work on that.

Each month, I’ll be writing a review and thoughts on how you can apply principles from the book. I’d love for you to join us and share your thoughts as we go through a new book each month.

In the meantime, for those of you who are eager to read more than one book a month, I created a page with a bunch of books that I’ve read and recommend. Trust me, there are a lot that were left off the list. I’ve still got a few to add, but it’s a good start. The link to the page is also in the navigation menu on the right side of the page. In full disclosure, the links are Amazon Affiliate links. They’ll help me buy more books to tell you about, so thanks in advance.

Oh, and if you have any suggestions to add to the list for the book club, hit me up.

Creating a Real Estate “401k”

July 14, 2016 By Chance Leave a Comment

Something has been weighing on my mind recently and I wanted to try to offer a solution. The more agents I talk to, the fewer, it seems, have an exit strategy for when they are ready to “retire” from real estate. I’m not talking about the traditional exit strategy discussed in many blogs that involve creating an asset that can be sold or passed down with ongoing income streams. I’m talking about a retirement investment strategy.

If you look at the statistics, the average agent is 57 years old. While there are many contributing factors to that, one of the concerns I have is that people aren’t leaving the industry because they don’t have a choice. They are literally working until they die. So, my question is, quite simply, why? Here you have men and women with a world of investment data literally at their fingertips and nothing to show for it. In fact, how many times have you posted something on social media about now being a great time to start investing in real estate? But, have you taken your own advice?

Why don’t more Realtors walk the talk when it comes to securing their financial future?

Now, before we get into the details, let me preface this with a few disclaimers. Although at one point I did have a couple of securities licenses, I am currently not a licensed financial advisor. Also, I realize there are a multitude of financing options, market variations, etc. And, yes, this is not exactly Dave Ramsey friendly. This is overly simplified, I know. So, before all of the comments, I am aware of all of these things. This is just a simple illustration.

Why a “401k” example?

I am using the idea of the 401k in its simplest form. The meaning is that this model is designed to create results at retirement or some point in the future. This is not your traditional real estate investment plan where you are taking passive income today. This is an investment plan that is designed to create assets and income in the future by using the income today to build equity. If you choose to do otherwise, you can, but I am putting this out there for the folks who are disciplined enough to follow a plan and then reap the rewards 10-20 years from now.

Additionally, the “accumulation phase” of this plan is designed to hold the real estate. That doesn’t mean, at some point, you couldn’t “sell your stocks” or “trade” for a new or better (hopefully) asset, but remember this is a plan where you can hold an asset and receive a dividend for well into the future. We’ll discuss “trading” your “stock” in the Wealth Building Phase portion of this.

Finally, much like a real 401k, this is designed to own assets. When I say own, I mean own. I don’t mean finance and be leveraged. This is where, I believe, the plan spits in the face of many traditional real estate investment plans. It doesn’t happen overnight, but it happens and you will find yourself with an incredible asset and a whole lot of money coming in monthly. So, let’s get to it.

The Accumulation Phase

So, the first step, like in everything, is always the hardest. For the purposes of this illustration, we are going to create some constants. First, every house we are going to buy is going to be priced at $150,000. Second, every house we buy is going to rent for $1500. Third, the houses we are buying need no repairs to make them “ready for move in”. Finally, we are not going to take any price/value appreciation into effect until way later. We are, for the sake of painting the picture, and for ease of math, going to assume that ten years from now the houses are still worth $150,000. Trust me, just go with it. We’ll do some appreciation illustrations later.

Ok, so let’s buy our first house. To give us a jump-start on this, we are going to put down 20% (also to make financing easier and cheaper). So, we need to save $30,000. I’m not going to lecture you on how to do this. If you want to save $30,000 you will save it. Let’s shoot for no more than one year to save that amount and we are going to save that amount every year for the foreseeable future.

One year has passed and you now have $30,000. So, you drop your 20% on the first house, hereafter referred to as House 1. At a loan value of $120,000, your note is roughly going to be (assuming 3% taxes, $1500 insurance, and a 4.5% rate) $1150. That leaves you with $350 each month in profit. Instead of, like many investors, taking that profit, we are going to put every penny into the mortgage. Based on that overpayment, we would pay off House 1 in 14 years and 9 months. Not very sexy, but stay with me because it gets better.

In the meantime, we are saving another $30,000 in a year. So, year two begins and we buy House 2. Same numbers as before. Instead, however, of paying the additional $350 to House 2, we are going to pay it on House 1. Now, our payoff of House 1, with a $700 overpayment each month, goes down to just over nine years. Still not showing up on MTV Cribs (yes, I’m old), but the light at the end of the tunnel is more realistic.

Third year, same story. Our payoff on House 1, overpaying by $1050 each month, is less than four years away. And so the story goes. $30,000 a year. One new home a year. Every year.

Here’s where it gets better and why you have to see the long-term payoff on this. Let’s say that year 6 we pay off house #1. Now, we transfer all of our overpayment, and now an additional $1000 ($1500 less taxes and insurance) to house two. So, for the record, that’s $1000 plus (5×350) $1750 for a grand total of a $2750 monthly overpayment. House 2 gets paid off in less than 3 years. House 3 comes next, nearly 9 years from buying house 1. You now have 2 homes that you own and 7 financed, but not for long. So, 2,000 (from House 1 and House 2) plus (7×350)$2450 for a total of a $4450 payment each month. House 3 is paid off in a matter of months, not years. And so the dominoes fall. You can continue to purchase and payoff very quickly from this point forward.

The Wealth Building Phase

So, let’s say it is year 10 from our start. We now own 3 homes outright and another 7 with notes remaining. The great news is that we can literally pay off the remaining 7 within a couple of years, if not sooner. So, let’s stop saving our $30,000 a year in year 12. At this point, we will own (or be very close to it) 12 homes outright for a total value of $1,800,000 ($150,000×12). As a bonus, that asset is paying us (after property taxes and insurance) $12,000 a month. Do I have your attention now?

So, you can make some choices: either continue to buy, trade up on some of your “stock”, or sit back and enjoy the rewards of your hard work and discipline. The awesome part is that you can do whatever the hell you want because you have the asset and the security. For me, my choice would be to continue building wealth. Even in “retirement” I would still do it. Now we are getting into the legacy department, and that is for another day.

Picture this, though, at $12,000 a month, not saving an additional dime of your income outside of the 401k, you could buy a home a quarter and have them paid off in next to no time. So, instead of having 15 homes in year 15, you could have 20. In year 20, instead of having 20 homes, you could have 44. Looking at that, using the same numbers, you would go from a $1.8 million asset in year 12 to a $6.6 million asset and cashflow monthly of $44,000 instead of $12,000.

Oh, and by the way, since we stopped saving our $30k a year in year 12, we just bought and paid for 32 houses without investing a single penny of money into the 401k. That’s $32,000 a month and $4.8 million for free in an 8 year period.

Appreciation Models

So, using our illustration above, we have invested a grand total of $360,000 (12x$30,000) and have a $1.8 million return with a $144,000 a year dividend. Not too shabby, right? So, let’s look at what this might look like with some realistic appreciation models in place.

I live in Houston, TX, where we generally have conservative appreciation. Since my other assumptions are using our market as a model, we’ll stay here. We run a roughly 4% appreciation rate historically. So let’s assume that our value and our rental rate appreciates 4% annually. This will obviously affect our payoff in a positive way, but might also affect our taxes negatively. Let’s focus on the end result though, because, after all, we are in a 401k mentality. In year 15, House 1 is worth $270,000 and your rent is $2700. I’ll let you take the math from there, but you get the picture.

So, there it is. Yes, I know it isn’t perfect, but it makes the point. Should you also invest in other things like stocks? Yes, you probably should. Like Warren Buffett says, though, “Never invest in a business you can’t understand.” You understand real estate. Go get rich in it.

Here’s my challenge to you. Tomorrow, I am going to go to my bank and open up a separate account. I am going to start saving my first $30k tomorrow with the goal of buying my first rental property next year. Will you join me?

The Communication Game

March 16, 2016 By Chance Leave a Comment

Not to get all deep and philosophical about things right out of the gate, but I have a serious fear for my children and my children’s generation. It’s a lack of communication skills. Between messaging and Snapchat and emojis and texting in slang or abbreviations, I have a serious fear that the communication skills necessary for success are quickly going by the wayside. I try, the best I can, to limit screen time, make my kids tell me stories or even just about their days, and teach them to look others in the eye when they are talking to them. I want them in speech in debate as they get older. Why?

I truly believe that your ability to communicate your point, regardless of what you are doing, is pivotal to your ability to be successful.

You may be asking yourself at this point just what the hell this has to do with real estate. It’s this simple: if you really get down to the nuts and bolts of what we do, we communicate. We aren’t the parties to a transaction. We aren’t attorneys or title experts. We aren’t lenders or mortgage experts. We communicate. From discovery to service to follow-up, we communicate. We discover needs and wants, we set expectations, we relay information and documentation, we problem solve, and we close. All of that, again, at the base level, is communication.

Selling Yourself

What is brand building? What is advertising? If you can’t guess by now, it’s communication, it’s story-telling. How you communicate your value to your audience is the essential part of creating brand recognition. Creating a solid call-to-action is an essential part of lead generation and capture. Taking those leads from interest to client is a direct result of your ability to tell your story and show interest in their story.

How can you become the first thing people think of when they think of real estate? Continuous brand building and consistent messaging are key to brand awareness with your potential clients. Whether you choose to be topical, clever, or resourceful in your communication to prospective clients, your delivery of the message over time is the key to your success. Being able to do it without being annoying is also pretty important.

Servicing the Client

From the time the prospective customer becomes a client to the time you close the transaction, your communication revolves around the service you provide. Beginning with the discovery phase, you have to be able to communicate with your clients to be able to best serve their needs and wants. Once you’ve done that, and found them either the home they want to buy or an offer suitable for acceptance, your communication expertise in negotiation becomes key. After that, you become a conduit for communication between all of the involved vendors, agents, title people, lenders, and, of course, parties to the transaction. Since we have beaten the expectation setting part of this like a dead horse on this blog, I will forgo it for now, but it is vital. Holding your client’s hands through the process with clear communication is key to creating a smooth transaction. Creating a smooth transaction is key to creating a happy client. Creating happy clients is key to building your referral base.

Building Your Referral Base

Do you have a plan to create a referral engine? When you’re with a prospective client, and then a client, and then a past client, how do you approach the topic of getting referrals? When do you start? If you don’t have that plan in place, I would submit to you that your business is not working for you. That doesn’t mean that your business isn’t working. It just isn’t working for you.

A plan to build a consistent stream of revenue from your current and past clients is pivotal. It should start the first time you meet a prospective client. It should continue throughout the sale/purchase. And, here’s the important part, it should never stop. Ever. The great thing about this plan is that a great deal of it can be achieved automatically through a CRM. You have to have the plan though.

Protecting Yourself and Your Clients

It pains me to say this, but we live in a world where everyone wants to sue everyone when they don’t get their way. In case you were wondering, you are one of the everyone. In this world we live in, we communicate in an ever-increasing number of ways. While I am a huge fan of face-to-face and telephone communication, it should be noted, for your protection and the protection of your clients, that everything should be followed-up in writing. Keep texts and emails. Store whatever other medium you might use to communicate, but make sure that verbal conversations are then put into writing to ensure that everyone is on the same page.

I’ll give you an example. In our new agent training classes we have an exercise we do. The new agents pair up and sit back to back. One agent is given a simple drawing like a house or a bird or a fish. Without telling his/her partner what the drawing is, they have to describe how to draw it. The results are often comical in a classroom setting, but are a perfect example of how easily verbal miscommunication can occur. Follow it up in writing to make sure that your house or bird or fish matches their house or bird or fish.

Going back to the original point, understanding that your primary role as an agent, as a business owner, is communication will help drive your processes and systems. Being an expert communicator will make the difference in your level of success. Even if it is not your strongest natural strength, it is one that can be rather easily developed. Whether you choose to join an organization like Toastmasters or just develop and practice scripts, working on your communication plan is something that should be done daily.

Bumps in the Road

March 2, 2016 By Chance Leave a Comment

In the course of a “normal” real estate transaction there are more ways for something to go wrong than the general public can imagine. It’s one of the many reasons why the general public doesn’t find value in the work a good Realtor does on their behalf. It’s also not the stuff they show on HGTV. The potential bumps in the road are numerous. The good news, however, is that, if handled correctly, these bumps in the road can be handled. Most aren’t fatal to the transaction. So, where’s the “but”? The “but” is whether or not you handle them like a butt or like a professional.

Through properly setting expectations with a client, proper presentation of the problem to the client, and cooperation with your fellow professionals, most bumps in the road in a transaction can be overcome.

Now, that’s not to say that there aren’t problems that can’t be overcome. There are, and if you haven’t experienced it yet, you will. That is, unfortunately, a part of the business and something that has to be dealt with from time to time.

Setting Expectations

In a previous post, we talked about setting expectations at length. So, I am not going to rewrite that post for the sake of this one. The bottom line is this: people don’t like surprises, especially in what can already be a stressful situation. So, don’t let it be a surprise. Setting expectations from the beginning and reiterating those expectations throughout the process will keep your client both prepared for these situations and aware that you know about them and are working on their behalf. Building value in yourself is the bonus.

Proper Presentation

The hidden beauty of setting expectations is that it allows you to present a problem as it arises in a way that doesn’t come as a surprise to the client. How you present a problem to your client, either buyer or seller, is key. If you freak out, they’ll freak out. If you come in laying blame, they will too, and most likely on you. If you come in bad-mouthing the other agent or other party to the transaction, they will feel like you are not in control.

The correct way to present a problem is to, first, go back to the expectation you already set. For example, “Remember, Mr. and Mrs. Seller when we talked about (fill in the blank)? Well, here is what’s going on.” Second, you review what you have already done or are doing to resolve the problem. This, again, builds value in you and what you do. Finally, you leave them with the plan and what could or could not happen in the end. Set a time to follow-up and be very communicative throughout the process. How you present the problem to the client will directly influence not only the way they react to the problem, but how they deal with the problem as you work through it.

Cooperation

Yes, I know, it is hard to be as good as you are. I know that there are very few agents capable of the level of awesomeness you bring to the table daily. I completely understand. However, from time to time you are going to have to entertain these other agents in an effort to serve your clients and make the money you’ve earned. We’ve also talked about cooperating agents in other posts before so I won’t get too deep into it.

Being able to creatively solve problems with the other agent, lender, and/or title company is how you will successfully navigate the treacherous path that pops up when there are difficulties in a transaction. The ability to bring all parties and vendors together to create win-win situations is how you show your true professionalism in times of need. That’s what makes you awesome, not only to your client, but to your fellow professionals as well.

Anyone can navigate their way through a simple real estate transaction. Anyone can also screw up a somewhat difficult transaction. Don’t be anyone. Be better than that. Show your value to your clients. Be the agent that other agents want to be like when they grow up. Having processes and systems in place in your business to deal with difficult situations, unforeseen problems, and less than stellar vendors, agents, and parties on the other side of the transaction is paramount to your success. That’s how you differentiate yourself and become an all-star.

Presidential Campaigns and Real Estate

February 23, 2016 By Chance Leave a Comment

The 2016 Presidential campaigns are well under way with three primaries and two caucuses down. Now, whether you like it or not, if you’re involved in real estate in any form or fashion, politics play a large role in your business and you ought to be paying attention. How involved in that you’d like to be is up to you, but if you aren’t aware of the ramifications to your business that the policies laid out by the candidates can have, you may end up regretting your lack of attention. That, however, is a topic for another day.

Today, I’d like to take a look (again) at the lessons we can take from a political campaign and apply (or not) to our business. If you think about it, at its base level, a political campaign is nothing more than a very long (too long usually) marketing and sales campaign. Now, it’s a candidate’s dream to run unopposed, but that’s not always the case. If you approach your business as a candidate running unopposed, when you do have an opponent you will be unprepared to deal with it and will likely lose the election. So, here are just a few of the many things you could take away from a political campaign that could very easily translate to your real estate business.

Note: While I am going to use actual examples from actual candidates, none of the info contained herein should be considered a critique of a candidate or an endorsement. Please keep your political comments to yourself. This is a real estate coaching blog read by no fewer than 21 people on a regular basis, not Fox News or the Huffington Post.

Messaging

If you ask most political consultants, they will tell you that one of the most important things in a campaign is messaging, consistent messaging. Despite the scope of a Presidential campaign and sometimes the mud-slinging that happens, a campaign should be about policies and issues and the candidate who can clearly, concisely, consistently and, more importantly, convincingly communicate those points to the voter (buyer) usually wins. We’ve all seen the “flip-flop” ads accusing one campaign of changing positions based on voter attitude. Your value proposition should not change based on trends.

On the flip side of that, there is such a thing as too much messaging. Seriously though, how many of you have that friend who posts nothing on Facebook but things about their Advocare, Nerium, Plexus, Tupperware, Mary Kay, Seaweed Wrap, or Real Estate business? Being able to clearly communicate your value proposition is critical to your success. Wearing people out with it is, on the other hand, the fastest way to run someone off from being your brand advocate.

Distribution Channels

From a marketing standpoint, campaigns are generally excellent at using every available resource to distribute their message to the market. From traditional media to P.R., social media to word of mouth, commercials, print ads, video, radio, TV, newspapers, signage, and the list goes on, campaigns will literally use every single medium out there to communicate the messaging of the candidate and build brand awareness. What can you do to maximize your exposure to the public using the resources available to you? What are best modes of communicating your message to your intended audience? On that note…

Knowing Your Audience

So far, on the Republican side of this particular campaign, we’ve seen contests in Iowa, New Hampshire, and South Carolina. The winner of the Iowa Caucus on the GOP side was Ted Cruz. Cruz did an excellent job of communicating a message to Iowans that fit what they wanted to hear, despite having one particular position that directly opposed the views of many voters. In New Hampshire, on the other hand, a far more liberal state, Donald Trump held firm to more centrist ideals and won overwhelmingly. In both cases, the candidates knew their audience well and communicated the message using every format they could and came away with the win.

Ground Game

Another big difference between the Trump and Cruz campaigns is how they have put together their ground game. Ground game in a campaign refers to the number of people going door-to-door or making phone calls for a candidate. Ted Cruz has been very good about setting up a solid ground game in nearly every state. On the other hand, Donald Trump has eschewed the traditional ground game strategies and relied more on large-scale events and making headlines. Traditional wisdom would tell you that the person with more people working the public will win. In this case, nothing about this election has been traditional. That being said, let’s go with tradition and try to build an army of advocates out there building your brand for you. It is, after all, the cheapest and most profitable way to build your business.

Differentiation

So, here’s where the rubber meets the road in a campaign. A campaign is a zero sum game. In order for one candidate to gain votes, they have to take votes from someone else. The only way to do that is to differentiate themselves from the other candidates in the field. Sometimes that is easy because of significant differences in opinions. Sometimes, however, many of the candidates look and sound a whole lot alike. Being able to effectively differentiate themselves from the others in the field, even if there are few actual differences, is what allows a candidate to take votes from other candidates in order to win. What is the value proposition you need to communicate to differentiate yourself from the other candidates to help a client buy or sell a property? Does your service differentiate you? Your use of technology? Your expertise in a certain niche?

Measurement and Adjustment

Analytics are extremely important in a campaign. Everything is measured. From opinions about immigration and economics to who is most handsome or pretty to, in the case of Bill Clinton, boxers or briefs, everything is analyzed and measured. Anomalies are tracked. Trends are forecasted to account for every possible outcome. Polls are taken regularly and analyzed. Adjustments, based on all of this data and its analysis, are made to ensure that the candidate’s message, appearance, marketing materials, or anything else that isn’t seen as favorable changes. Remember, the goal of the candidate is to earn votes. The goal of the real estate business owner is to earn business. What are you doing in your business to measure and analyze the results of your messaging, marketing and dollars spent doing both? How would you adjust that strategy if it wasn’t working?

Admittedly, the title and timing of this post is not coincidental, but that doesn’t change the lesson. Marketing campaigns are called marketing campaigns for a reason. From the standpoint of a business owner, your ability to look at the campaign in its entirety will allow you to come up with a more comprehensive plan for creating your value proposition and the marketing tied to it. Hey, you never know, you might just get elected in the process.

The Top 5 Mistakes Rookie Agents Make

February 11, 2016 By Chance Leave a Comment

To start off, this is just another in a long list of posts that are related to “Your First Year in Real Estate”. It certainly won’t be the last, and probably won’t be the last on this site. Also, if you can keep the number of “rookie mistakes” you make to five, congratulations. You win Rookie of the Year. Hopefully this will help you avoid some mistakes that others out there have experienced and that I see on a pretty regular basis.

To preface the meat of this post, I have to say a few things about this list. First, none of these mistakes are fatal. You can make them and still turn out as a pretty good agent. Avoiding them will just help speed things along on the road to success for you. Second, this is not a 100% complete list. It’s just a list I made based on personal experience and coaching real estate sales people for a decade now, and some input from a friend who coaches agents and is pretty darn good at it. There are other mistakes you can, and most likely will, make. Remember, and not to sound cliché, it’s a journey. Learn from the mistakes and move on. Finally, if you read this list and realize that you’ve made one of these mistakes, that’s ok. Don’t worry. It can be fixed. Nothing in this crazy real estate world is that permanent, especially in your first year or two. Now, let’s get going…

1. Not Branding Yourself

I know, I know. You just took your exam and got sponsored and you think that your Broker/Brokerage/Parent Company/Coach/Kool-Aid Deliverer is the greatest thing since sliced bread. It’s an exciting time. It really is. I’m not just being a smart-ass to make a point. I’ve been there.

There is a little secret that I would like to tell you, though. You’ll probably change brokerages at some point in your career (This is not true of any of my agents that happen to be reading this. Y’all just skip this part). It may seem unthinkable, but the number of agents that have stayed at the same brokerage for an entire career is extremely small. So, brand yourself before you brand your Broker. Get your own domain name and your own email address associated with that domain: yourfirstname@yourname.com. Remember, according to NAR stats, only 3% of people care who you work for. This is a people business. They are buying you, not your Broker. Build your brand, not your Broker’s.

2. You Don’t Focus on Learning

Listen, your education didn’t end when you took that exam. In fact, I can tell you without hesitation that your education didn’t really begin until you took that exam. Most state regulated courses leading up to the exam are a joke and have no practical application in the real world. If you aren’t enrolled in classes (hopefully with your Broker), a mentorship, coaching or something like that a) you chose the wrong Broker, and b) you need to figure that out quickly. Also, start reading, listening to and watching podcasts, surf the web for coaching videos, etc. Follow smart people online, sign-up for webinars, shadow experienced agents. In other words, make learning a top priority in your business. When you aren’t doing something to make you money, you should be learning something that will.

3. Not Putting Systems and Processes in Place

It may not seem like it right now, but, at some point, time becomes your greatest asset and your biggest limitation. There will come a time when you will be so busy that the idea of stopping for a day or two to add systems and processes into your business will seem crazy. The problem is that you will have to do just that or risk stagnation. So, a real simple solution is to put them in place from day one. They don’t have to be perfect, but they do need to be there. You can adjust as you need to. Marketing, customer service, follow-up, transaction management, and database management are just a few areas to focus on. Without scalable systems and processes in place early in your career, your business will suffer later down the road.

NOTE: Don’t spend all of your time doing this. An hour a day or so will be just fine. This isn’t busy work so you can avoid doing real work. You don’t want six months to pass and all you’ve done is organize your contacts.

4. Not Using a CRM Software

We’ve talked about this before, but I just can’t emphasize the importance. Organizing your database, creating perpetual follow-up protocol, and automating as much of it as you can is pivotal to your success, especially at a time when you are initially building your brand awareness. That’s it. There’s nothing else to say. Find one and use it. Remember, the right CRM is the one you actually use. Play with a bunch and find the one that works best for you. Use a CRM or be SOL.

5. Focusing on the Outcome, Not the Input

If nobody told you in your interviews with a broker, let me be the first to break this news to you: success in real estate is not easy. This isn’t HGTV. You don’t just get a license and then the producers show up outside your house and start filming. Real estate is a grind. It’s a game for hustlers. The ones that are willing to do the work, and do it consistently, every f’ing day, are the ones that are making the money here. If that isn’t for you, take your ass back to what you were doing last week. If you’re willing to do the work, focus on the work. Keep your nose to the grindstone and the results will come. They will. I promise. Don’t get discouraged. Don’t get mad (unless that kind of thing motivates you) when a friend uses another agent. Suck it up, put on your big boy/girl panties and move on to the next task. Focus on what you can control. The results will follow with hard work, consistency, and patience.

There you have it. Now, take your ass back to work.

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