“There are THREE sides to a coin!”

Most of the time, people think of a coin as two sided. The story of flipping a coin and calling “Heads” or “Tails” to decide something goes back thousands of years. When it comes to making a one in two choice, a coin flip can certainly do the trick; but as any coin collector will tell you, there is a third side to every coin, and that is the edge! Look at your change. You can see different edge types on different coins. Some are smooth. Others have ridges. A smaller group of coins actually has images or engraving on the edge. That third side sometimes makes all the difference! And while flipping a coin generally ends up either heads or tails, it is possible for that coin to land on its edge!

I bring this up because I want you to think of all the possibilities, not just the obvious possibilities. In the mortgage and real estate industry we see situations that are as clear and as obvious as heads and tails; and for the most part, it is really the outcome. However, things are not always as they appear and that is where your deals can quickly go sideways in a big hurry! We always need to account for the edge! We always need to know what about our situation could happen, even if it isn’t likely to happen.

As a professional, you do these transactions every day. Your clients are involved a few times in a lifetime. Market conditions change; and as a professional you are aware of these changes and allow for them and educate those around you of them. But seem people aren’t aware of changes or are not working with people who have prepared them for all the possibilities. That is where you create your advantage. The very differentiation we should all be looking for; your competitive edge!

While most of the market works on the obvious, the real professionals account for, and master the edge! Some examples of the edge thinking:

  • Having your agents refer you all of their listings so you can save them up to 2% on their next purchase.
  • Having your agents refer you to potential listing opportunities so you as a lender can offer services, support, and an endorsement of that agent.
  • Originators working with their agents on The Forever Home Strategy® or the First Time Seller Strategy® to help generate listing and buy side opportunities.
  • Contacting every professional associated with the transaction to verify information and establish a new relationship after a successful closing.

These are just a few of the concepts I like to think of when we look at what the most professional people can, and are doing to explore every possible opportunity and outcome on each transaction!

While most of the country is struggling with a tight inventory market; some are out there setting records and serving their markets because they don’t just live with heads and tails; they live, work, and own the edge!

These concepts and more are all in the new Power Partnerships Program® that Terri Murphy and I have created to help loan originators and their Realtor® referral partners work together to generate and secure more opportunities. Take a look at www.RLPPNOW.com to see how we might be able to help you!

Questions or comments: Mike@IMTcoaching.com or visit us online at http://imtcoaching.com


“Excuses or Actions?”

We had another housing report come in that really wasn’t all that surprising, refinances are down, purchase applications are up, listed inventory fell another 22% from just six months ago. I am sure this isn’t a surprise to those in the field, but it sure seems like the main stream media is constantly surprised by the strength of the housing markets across the country?

The feedback I am getting from my clients is that they are very engaged in this market and that production numbers for them are considerably higher than this time last year. The number of transactions in contract and preapprovals out looking are significantly ahead of this time last year at the same time they are reporting the number of Realtors® complaining about inventory and multiple offer situations are increasing.

We have talked about this a great deal. When the market gets tight, the better people do better! More of the deals getting done are getting done by a smaller group of professionals. The example I think applies the best comes from the Denver market. In my opinion, there isn’t a tighter market in the country than the one in Denver! Yet, deals are coming together quickly when everyone is prepared! Yes, there are multiple offers on most properties, but for those people who have been well prepared; they are getting their offers accepted much more frequently.

So let’s take a look at a few of the reasons that the better people are closing a lion’s share of the deals:

  • Buyers have taken the time to be fully qualified for their loan needs by a trusted local professional!
  • Buyers are making competitive offers with quick closing dates!
  • Buyers are writing personal letters to the sellers detailing why they want to own their house and make it their new home.
  • Buyers agents have educated their buyers as to the real cost of property and what the market is.
  • Buyers are looking for better situations than they currently have, not a perfect house!
  • Selling agents know who the better lenders are and who they trust when it comes to a transaction timeline.
  • Selling agents know that the cost of what their sellers are buying can be going up faster than what they are selling, and financing costs rising could easily consume a few thousand dollars they are waiting on.
  • Selling agents are working their neighborhoods sharing with people in high demand areas the value of selling and moving on to their “Forever Home” to help generate new listings.

So instead of letting everyone around you just complain about inventory and multiple offer situations, share strategies that are working everyday across the country to acquire new properties for sale, generate better more qualified buyers; and put together real deals that will close quickly!

Some people are happy to sit and complain about how bad the market is! Just like those who complained about all the “short sales” or “foreclosures” just a few years ago. The media also warned about the next housing bubble because there was a giant number of bank owned homes that created this gigantic “shadow inventory” that was going to crush the housing market and start another “bubble”. Well news flash!!! If the banks had any kind of inventory at all, they would be on the market and SOLD by now!

You alone control the way you act and react in this market! You define the experience you provide and identify the people you want to surround yourself with to provide the best possible customer experience. You control if you complain about the situation you find yourself in; or take the actions necessary to establish yourself as the professional that gets the deals done! So you make the choice, complain about the market, or be the one who makes the market!

Questions or comments: Mike@IMTcoaching.com

“The Best Succeed”

The best succeed when times are challenging because they engage the situation and work toward a solution. OOPS! I used that four-letter word again, “WORK!” It’s true; the best succeed because they are willing to do the very things those that don’t succeed are not willing to do. Plain and simple, if you want a result, you have to do the work!

We are looking around the country and hearing from most markets that there is a challenge with inventory. One client of mine just told me that their borrower was told by their agent, that it might take a year or longer to find them a home! Can you imagine? What a great way to present the case for home ownership than to tell someone that it may take a year for them to find a home?

Let’s be clear, in some markets, there is certainly a lack of listed inventory. That said there is no shortage of homes, just a shortage of homeowners who don’t know that it’s time for them to sell and move on! Nobody has made the case and given them their “WHY”! Nobody has shared with them the value on moving to their next home. Yes, not everyone is currently living in the home they say is the home they plan on staying forever! So why not help them get there?

We all know home prices aren’t going down. Neither are interest rates. It makes perfect sense to make the move now! Not only because it saves money, but what do you think the market is going to look like at the height of the spring and summer markets?

It is time for lenders and their Realtor® referral partners to sit down and run the numbers. Look at the demand, the neighborhoods, current and past prices, and make the case for action! Remember, the best succeed because leaders lead! Take out your copy of the “Forever Home Strategy®” and review it carefully. Be sure you are clear to all the moving pieces and the timing of these actions and activities. Make use of your social media platform by using video to share your actions in specific neighborhoods! Create involvement and value by being consistent with the information and your actions!

Two hours once a week working directly in the field talking with the people who would benefit from making a change! Forty or fifty contacts a week for four to six weeks could very well make the difference between complaining about tight inventory, and closing a few transactions! After all, would you rather be sitting down complaining about the market, or would you like to be doing some work and closing some deals?

Questions or comments: Mike@IMTcoaching.com

The “Forever Home Strategy®” is part of the IMT Coaching Program and Power Partnerships® at www.rlppnow.com  $59 a month can change your business for the better!