GROWING TREES

Have you ever wondered about people who make their livelihoods owning a tree farm? How strange and scary it must be to have to make almost all of the investment in the beginning and then have to wait years for any return on that investment.

We think all kinds of things...

How do they make it in the early years? How tempting is it to sell the trees a year or two before they reach their optimal size at which they bring the highest price? What if a storm, drought or infestation hits?

The growth of any tree is much like the growth of your business over the years. Outside factors play a role in the growth of the tree but the tree itself and it's own strength and fortitude will dictate it's growth patterns.

You are growing your own tree every day and in the end, if you have the diligence and patience your tree can grow to astounding heights and yield fruit the likes of which you had never imagined.

More on growing your tree tomorrow...

EMPATHY (PART 2)

Your purchasing borrowers are worthy, even needy, of your empathy! In most cases, your borrowers are dealing with one or more of the most stressful things people can have to deal with in their lives. Relocation, job change, divorce, marriage, and change in family size are just some of the challenges facing these people at the time of your contact with them. Not to mention most of them have a home to sell and most of them just want their loan to be approved. By "putting yourself in their shoes" and understanding their issues and making them more eat ease you will do well by them and do well for yourself!

EMPATHY

Empathy- the capacity for experiencing as one's own the feelings of another.

Perhaps the greatest success tool in business and in life is empathy. The ability to understand how others feel and appreciate the fact that only your world revolves around you, is a skill every Loan Officer needs.

It is important to understand how others feel and appreciate the fact that only your world revolves around you, is a skill every Loan Officer needs.

It is important to understand that the Realtor just wants to be paid and have his customers leave happy. It is important to understand that your underwriters have a job to do and it doesn't always mean approving everything that hits their desk. It is important to understand that your processor probably has other flies to work on besides the one you feel is so critical. It is important to understand that your refinancing customer may just want convenience or the lowest payment or the most cash out to pay off their debts and sleep better at night.

Empathy, however, is most valuable to us in dealing with purchasing borrowers because they are the ones who typically need the most empathy.

To be continued...

BE A FRIEND

“Friendship is the hardest thing in the world to explain. It’s not something you learn in school. But if you haven’t learned the meaning of friendship, you really haven’t learned anything.”

— Muhammad Ali

In the ring, Ali floated like a butterfly and stung like a bee, but his best work was outside the ring serving up philosophical wisdom like this on a platter, which the media had an insatiable appetite for.

The key to friendship is that if you want a friend, be a friend. True friendship is a give and take relationship in which both parties benefit from their association with one another. At its very best, friendship represents one soul in two bodies.

Friends are truly one of life's greatest gifts as going through life without them is like trying to dog paddle across the English Channel. It can conceivably be done, but it won't be easy or pleasant.

The bet time to make friends is before you need them and right now your business could probably benefit from more friends!

Tomorrow, we will look at how to find the right ones. 

FRIEND #1

For the past few days we have examined the essence of friends and friendship and why friends are so important in life and in business. What many people don't completely understand though, is that there is a friend out there that most of us don't even consider a friend, but we absolutely should. They are the friend we know won't mislead us at any time under any circumstances.

No matter how many great friends you have, the friend inside you, your inner feelings, is still your most reliable buddy. What they say can always be trusted. Whether the friend inside you says "yes", "no", "be careful", or "go for it" you will know what you should do, whether you act on it or not.

Your inner feelings are more reliable and worthy of your trust than even the best of friends because no one knows you better and nothing can possibly get lost in translation. So trust the friend inside you because it never misleads.

You'll be thankful you did!

A FUTURE MUSEUM PIECE

Several years from now we will look back at these days of 80/20 financing, shake our heads and say "can you believe we got people in with zero down, stated income and marginal credit?"

You read it here first. 80/20 financing for all but the cleanest of borrowers will be a footnote in Mortgage Banking history some day along with the graduated payment mortgage and the 3-2-1 buydown.

The reason is simple economics.

As we discussed here recently, there is no housing bubble that will cause Real Estate values to crash. However, when price appreciation slows or stops in the most heavily populated parts of the country, those 80/20 borrowers who have to sell will be in big trouble thanks to their negative equity and cash poor position. The number of foreclosures and massive associated losses will then dictate a change to more traditional underwriting guidelines.

So enjoy the 80/20s... while they last!

INTEREST WITHOUT RATES

If you want to be interesting, be interested.

The above sentence is the eight-word key to popularity and sales success. So please read it again above and find out how below.

Being interested in whomever you are speaking to is the first key to successful conversations. Put yourself in their shoes and try to see things from their perspective. Adopt a "what can I do for you?" attitude. And above all, try to avoid worrying about what you just said or what you are going to say next. Those voices in your head will make it impossible to really hear what the other person is saying.

A compliment is always nice, too. Just make sure your compliment is specific and genuine or the compliment will fast become a detriment.

Other keys to successful conversations are to smile, make eye contact, show a positive attitude and listen more than you talk.

Please remember that in the end, it is not what you say that truly matters, rather how they felt talking to you that people will remember.

YOU TALK TOO MUCH

“... I can’t believe the things that you say everyday. If you keep on talking baby, you know you’re bound to drive me away.”

George Thorogood first sand those words back in the 80's but it doesn't matter when because talking too much has been an issue for human beings since the day some ape-like being uttered their first words.

When you are in front of your customers, sometimes you talk too much. When you make sales calls, sometimes you definitely talk too much.

We all do it. It's human nature. We all love to talk and our favorite subject is usually ourselves. However, talking too much and especially about yourself is a mistake you can learn to make less.

In the words of the great Dale Carnegie,

“...you can make more friend in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”

YOU ARE BLESSED

Sometimes we ask, "how are you doing?" and get the response "not too bad".

"Not too bad?" What does that mean?

Does it mean that you would be "too bad" if that latte had cost another twenty five cents or your sniffles got any worse? Or are you so close to being actually "too bad" that you are unable to work? "Not too bad" is truly an instance where perception is nine tenths of the law. Maybe ten tenths.

On the other hand some people answer the same question by saying "I'm blessed". 

You don't have to be religious to be blessed, just happy to be alive will be sufficient if your attitude is right. Whether or not you are blessed is 100% up to you because one definition of blessings is anything fortunate. Therefore, blessings are all around us. 

The fact that you are reading this now means your internet server is operable. And while you may not consider that to be so fortunate, consider the alternative. We have all been there and it is truly unfortunate.

So are you blessed? Absolutely! We are all blessed; it's all in your perspective. At times you just have to look a little harder for what's fortunate in your life. Are you blessed to have that nice pair of shoes and fancy watch you are wearing or are you blessed to have food and shelter?

Blessings are all around us. Enjoy them all!

STAY IN SCHOOL

In most professions more education equals more income. This much is obvious. The not so obvious part is just how valuable an education is if we look at Americans as a whole in non-sales jobs.

All of you parents out there pick your jaws off the floor when you are done reading this and then make a copy for your children.

Using average hourly earning for different professions from the Bureau of Labor and Statistics and assuming the average student attends class 160 days per year and the average worker has a forty year career, we can put a value on every day of school attended. The results follow....

• High School: $1560 per day every day in grades 9-12, compared to a High School drop out.
• 2 Year Grad School: $1128 per day compared to HS graduate.
• Four year degree: a whopping $3288 per day compared to a HS graduate.

And an average doctor will make $2778 per day of grad school plus $3288 per day for their degree and $1560 per day of high school adding up to about $5 million in lifetime earnings over the high school dropout. And these numbers are in today's dollars, not inflation or time adjusted.

That's right. Getting a degree is like paying your kids over $3000 per day on top of their $1560 per day for high school.

And you parents out there think education is expensive. It is, but it's more than worth it!

Tomorrow we will look at a profession in which higher education does not necessarily mean higher income. 

FORGIVE AND FORGET

When we are angry at another person it frustrates.

When we get really angry at someone it brings us down, too.

When we stay angry at someone it is full-on self torture. We lose, they win.

The ability to forgive others misdeeds is one of the great gifts we humans possess because harboring anger will hurt you every time. Forgiveness is not condoning what someone did, it is moving past it for your own good. It is taking control and not letting the misconduct of others affect us in a negative fashion.

Over 2000 years ago a Jewish carpenter taught the world about forgiveness and then gave his life so that we may enjoy the benefits. So lose your anger and try a little forgiveness. It has been liberating people's minds for well over 2000 years!

LOSING THE BATTLE

There is an old saying that says "show me a good loser, and I'll show you a loser". That saying may be true in sports but not in business. No one likes to lose business, however, it happens to everyone and if you can be a good loser, it could make you a winner down the road.

When you lose a deal, rule #1 is not to burn any bridges. By going off on someone or slamming your competition (whom they have decided is better than you), you have nothing to gain. The distorted pleasure of slamming someone will be short lived and the pain of your angry actions could linger for years.

Rule #2 is put them on your mailing list. Chances are, that person will need a mortgage again some day and if you lose gracefully and stay in touch with them, you may generate future business and regerrals from them after all.

Also, remember the lender they originally chose may have done a lousy job, especially if the person shopped several lenders. If so they probably wound up like most borrowers who talk to too many lenders. They chose the one who promised too much because they didn't know any better and they unknowingly set themselves up to be disappointed.

So don't give up just because you lost a battle. The war is still out there to be won!

DO IT NOW!

In business and in life, few words are more important than one of the shortest complete sentences in the English language. If you want to work smarter rather than harder, take this short sentence to heart.

Do it now!

This sentence can also be expressed in a slightly longer form... Do not procrastinate!

Eliminating procrastination will reduce your stress and free up precious time. How many things can do that?

REFINANCE "WISH LIST"

Here is a tip that always works!

While many people can currently benefit from refinancing, most can not intelligently refi at current market levels due to their excellent first mortgages obtained within the past few years. However, with a small market improvement, many of them can. Rather than telling them you cannot help them because the rates have gone up or are not yet low enough, try this time tested tactic...

Analyze their situation and do everything you normally would as far as asking questions and building rapport. Then explain the situation in regards to interest rate volatility and offer to watch the rates for them and call them if and when the rates are such that refinancing would be wise. Then enter their name in any computer file that can be sorted. In this file be sure to include all of their basic information, current loan information and their desired loan.

Lastly, add a column for what the going "par rate" would probably have to be in order for their refinance to make sense. Sort your file by that required par rate and whenever rates go down, you will have an entire list of ready, willing and able borrowers who will be thrilled that you remembered them!

CALL, SEE, ASK AND WIN

This week, as every week, LO Insights will be dedicated to you and the success of your business. What is different this week, however, is that you are hereby requested to invest a maximum of one hour per day (yes, starting today), to improve your business and make 2006 your best yet! By spending these five hours this week, you will reap the rewards for the next 48 weeks. A classic investment with little or no downside risk!

Your first assignment, should you choose to accept it, follows...

Please schedule some quality time with all of your referral sources in January. Ask them all the same scripted questions and ask the tough questions too. For example...

• What could we do better for you?
• What is most important to you about what we do?
• How can I help you grow your business this year?
• What do you like most and least about our services/company?
• What could we do differently that would be a good fit for me as a new referral partner and would you mind introducing us?
• If I could give you a few questions to ask your buyers who already have a lender that are designed to make sure the transaction goes well would you be interested?

Each of these questions are helpful, non-threatening and the type of questions your customers will appreciate.

So take your hour today to call you referral sources to schedule this meeting. You and they will be glad you did!

I WANT CANDY

Did you know that every single one of your borrowers feels the same way about you? Did you know they all want the same thing from you?

Now you do.

Your customers want a few very simple things that you must be vigilant in providing to everyone, every time.

Borrowers want a fair deal. Borrowers want professional advice and guidance. Borrowers don't want any surprises. Borrowers want an easy process. Borrowers want to feel important and appreciated.

That's it. If you provide all of your customers with their five wants, you have given them a reason to come back to you again and again. Plus, every person naturally wants to share their great experiences with their friends and family so that they too can have the same pleasant experience.

Much like a great restaurant, if the food and the experience is excellent, people will want those they care about to be able to enjoy it as well.

So give every customer what they really want and treat them like the gold they are because there is no better source of referrals than the "Raving Fan"!

COACH THE SOURCE

As we know from last week, Realtors simple do not direct mortgage business with the same frequency of several years ago. Accepting this fact is difficult at times for us and them; however, with a little coaching the trend can be swayed in your favor.

Your loyal Realtors would like to send every one of their buyers to you, which won't happen, but if the agent is strong and plants the right "seeds of doubt" in the minds of their buyers, you can both increase the percentages. So whenever your agents have a buyer who already has a lender, encourage them to ask some of the following questions...

How much experience does this lender have? Do they really know and understand our local market? Is their company reputable? Can you afford to lose your earnest money if they don't perform? If I could provide a proven lender with the same pricing would you be interested in not taking any chances?
 

Even better than these questions is for the Realtor to get in the habit of calling the buyer's lender and doing a quick interview to determine their competency and reliability. Once they do, they will usually have enough food reasons for the buyer to call you!

STRANGE BUT TRUE

Realtors don't refer borrowers to lenders as much now as they did a few years ago.

That, my friends, is a fact.

How many times have you heard this one from a Realtor lately? "I have these new buyers I would love to send your way, but they have already been pre-approved by their own lender." Probably more times than you care to recollect.

Our reality in 2006 is that almost every borrower out there knows a lender or has a referral to one from a trusted family member or friend.

It has been reported here before, but it is worth another look. in 2004 NAR (National Association of Realtors) did a survey showing that borrowers are three times more likely to trust the lender referral of a friend or family member than their Realtor.

This may be hard to believe (and imagine how hard it was for NAR to admit), but it is true. We all know that Realtors have much more experience in dealing with lenders than someone's best friend does, but the trust factor of a friend versus a Realtor can not be underestimated.

Our business is increasingly based on getting to the customer before the Realtor does and this trend will continue to grow. next week, we will look at how to change your approach and use this trend to your advantage in 2006!

KARMA

Karma is a Buddhist term, which says, "For every event that occurs, there will follow another event whose existence was cause by the first, and this is second event will be pleasant or unpleasant according to the first." According to Buddha, "our good and evil deeds follow us continually like shadows."

Karma doesn't happen by accident.

It has nothing to do with lucky and everything to do with you. 

SUFFER AND LEARN

None of us likes to suffer and sometimes our greatest mistake lies in trying to get through difficult periods as quickly as possible, not realizing that this suffering is usually preparation for better times ahead. Please remember that the hellish moments are preparing you to further evolve as a person of wisdom and strength. This is why we must welcome and accept all circumstances as part of our treasury of opportunity. 

All sorts of difficulties in life may draw you into the valleys of pain in order to shock you out of your old and comfortable ways into fresh pathways of thought. in every difficulty lies the invaluable seed of personal growth and spiritual upliftment. You gain inner strength and spiritual evolution from the overcoming of difficulties.

If you want love, give unconditional love. If you want peace, give unconditional peace. If you want business, give unconditionally!