I often get asked, “How long does it take to be successful in this business?” The next most common question is “How many hours do I have to work to be successful?” Both questions are the opening to a discussion that is different for almost everyone who asks it. The first question leads to my return question, “How do you define success?” Success is different for everyone. It means different things to different people. To me, you must have a target to aim for and measure against. While time frame is important, does it really matter how long it takes as long as you get there? It also matters that once you reach what you consider to be successful, that you can stay there! Longevity matters! But to be specific, I have always maintained that a successful originator be able to average 8 to 10 units per month consistently year in and year out by themselves. Other than that, you decide. How long should it take to get there? Those that commit to the process and do the work can generally make that happen in the first 6 to 12 months in the business.
As far as the number of hours required to be successful. That becomes more of a challenge because there are significant differences in markets, types of loans, clients, availability of loan products, and how you choose to work your business. Clearly it takes a significant investment of time and energy to get started. You have much to learn, many things to master, and schedules that will constantly be refined. However, once you have become established and mastered the skills and schedules surrounding your business, you should find it easy to work a 50-hour week, taking one long vacation (two weeks) and three short vacations, one week, and a series of long weekends (three or four days) a year.
There will be times when you will work longer hours based on seasonal or situational opportunities, but you will see how your market tends to flow quickly and go from there. But again, how you work your business and with whom you work with has a lot to do with the time you commit. Some people work longer hours because they want to. Some choose to hire assistants to take some of the work off their plates and work less. It’s a choice you make for yourself. But yes, you can also work 80 hours a week and close 3 loans a month or work 35 hours a week and close 15 loans a month. It is YOUR choice!
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I wanted to share success stories from the street of real originators and managers who are using the strategies to improve the number of opportunities and create new relationships. It never gets old when execution leads to, or even exceeds anticipated results!
Running the bank route. In an effort to create new opportunities from small banks and credit unions, they followed the plan and selected ten locations within 10 miles of their starting point (office) in each direction N/S/E/W. Following the schedule, they would be able to visit and connect with forty locations every month. The second week they ran into a small bank that was closing their mortgage division and this manager was able secure a complete branch office and about 35 million in production when he hired the whole team as a unit. The branches still refer their mortgage opportunities to the same team they know and trust, and those clients are better served with a wider catalog or loan products at a better price.
The next strategy from the street is a personal favorite and is the gift that keeps on giving! Birthday calls! I have an originator that has taken this strategy and used it to increase his business three-fold, while improving his connection with his database, client connection, valued communication opportunities, and a measurable increase in past client referrals, just by spending a few hours each month calling his clients on their birthday and wishing them a Happy Birthday! Sounds so simple, and it is, but you do have to do the work and make the calls. You also do it regardless of any other types of marketing you are doing by email or snail mail for your clients. Not a sales call, just a “Happy Birthday” message or call. The past few weeks this loan officer shared with me that he made a little over 50 calls. Engaged in extended conversations with 8 clients. Which resulted so far in 4 loan applications for loans totaling over one million dollars in total volume and more than $15,000 in personal commissions! So, there were ZERO marketing costs, just pick up the phone and call. This habit generates this originator about $300 per hour for his efforts. Not a bad use of his time and energy, and the big bonus is, he LOVES making the calls even when they don’t result in a loan, sometimes they result in a future referral or just a great feeling of making someone happy!
The strategies work if you work them. What strategy will you employ before the end of 2021 to help Improve Your 2022? If you need help, it’s This email address is being protected from spambots. You need JavaScript enabled to view it.
Saul Klein is widely recognized as the real estate industry’s first Internet Evangelist. He was selected by the National Association Of REALTORS® as one of the “25 Most Influential People in the Real Estate Industry” in 2003, and has been selected as one of the “100 Most Influential Real Estate People” by Inman News in 2005, 2006, 2007, 2008, 2009, 2010 and 2011, 2012, 2013.
REALTOR® Consultant to the original RIN (Realtors® Information Network) project, including the development and deployment of REALTOR.com), he served as Vice President of Marketing and was responsible for the signing of the first 100 MLSs and first 500,000 listings to appear on Realtor.com.
One of the creators of RealTown, and many longstanding real estate online communities, including RealTalk, AETalk, MLSTalk, MLSInformation, PresidentsTalk, EducationDirectorsTalk and others, blogging before blogging was a word.
Saul has been a licensed California Real Estate Broker since 1977 and was the 1993 President of the San Diego Association of REALTORS®, and REALTOR of the Year in 1999.
In 2001 he created NAR’s ePRO Online Technology Certification Program and NAR’s Web 2.0/Social Media Program in 2010.
After taking the CEO position at of Point2 Technologies on January 1, 2008, he shifted the corporate strategy and focus to that of a syndicator of MLS listing data, building the second largest MLS syndication network in North America…and guided Point2 through a successful acquisition in 2010 by Yardi Inc., an industry
Julie Timms began her real estate career in 1979 in Hilton Head Island, SC and in 1985 opened her first brokerage, a Coldwell Banker franchise. In 1998, Julie and her husband, Bernie Timms, decided to downsize and open a small independent brokerage. In all those years Julie’s has focused on one thing – the success of each individual client. Julie’s desire for excellence in her business has led her to achieve the following real estate designations and certifications: ABR, CRS, CCIM, CLHMS, e-Pro, GRI, RSPS, TRC.
Nate Martinez is the owner of RE/MAX Professionals, a multi-office franchise located in the greater Phoenix area. He passionately believes in the value of education, having trained hundreds of real estate professionals across the globe as a speaker and a coach. With nearly 35 years in the real estate industry, he has been recognized with the Lifetime Achievement, Titan Team, Circle of Legends and the Luminary of Distinction from RE/MAX. One thing he is most proud of is the charitable contribution of his agents, and their support of the Children’s Miracle Network. In addition, he is also proud to be ranked the number one brokerage in Arizona when it comes to production per agent. The highlight of running his team is getting to work in the trenches every day with his fiancé Tonya, his oldest daughter Brandi and his son Nate Jr. Nate is an avid golfer, foodie, loves to attend sporting events and concerts and traveling the world. Together, Tonya and Nate are raising a teen daughter named Mila who they are so proud of.
For more than twenty years, Sarah Michelle Bliss has been a part of the RE/MAX family and an original founder at her brokerage in sunny Arizona, RE/MAX Professionals. She joined the number one team at the time, the Nate Martinez Team as a buyer’s agent in 1997 and later became the team leader, where she managed for the next ten years. She is a published author, has trained both locally and nationally, including the development and delivery of accredited real estate classes. Sarah is a Master Coach for Workman Success Systems based in Salt Lake City, UT and a certified DISC/Motivators Practitioner, Star Power Speaker/Trainer, licensed REALTOR®, and author for RISMedia. Today, Sarah Michelle is the Director of Agent Development and teaches the RE/MAX Momentum Complete Agent Development program for her brokerage. She lives in the west valley with her significant other, three cats and two dogs. Together they enjoy exploring the outdoors in their Jeep, rock hounding and share a love of music and football.
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Will the different generations of home buyers get what they want during the changing real estate market trends? Homebuyers are welcoming in a positive shift because more houses are becoming available for sale with even more coming before the end of 2021. The extra supply of homes for sale is slowing the still-rising prices of homes across the country. The median home price in June 2021 was up 12.7% --down from 15.2% in May 2021.
The measure of median home prices over the last year have been skewed because most of the homes sold were in prices above $500,000 to over 1,000,000 dollars. Aspiring home buyers had to work harder to find homes in the lower price ranges. That trend is making a turnaround. More newly listed properties are smaller and less expensive compared to last year. Younger homebuyers have a better chance of snapping these homes up.
CoreLogic predicts that home prices will continue to rise into 2022 but at a much slower pace. Mortgage professionals and their customers expect mortgage rates to rise, especially if the Federal Reserve announces that they will pull back from buying the billions of dollars per month in mortgage-backed securities. On the other hand, if the Fed makes the tapering of bond-buying gradual and foreign and domestic investors make up some of the buying shortfalls, rates may coast along and stay enticingly low.
All of these trends are paving an easier road for home buyers and homeowners who want to take advantage of refinancing to lower their rate, shorten the term on their loan or pull cash out. If they are not buying a home, Baby Boomers and Generation X have been positively restructuring their finances by refinancing their mortgages. Millennials and Generation Y make up the biggest homebuying group. This group is celebrating the smaller, less expensive homes going up for sale.
Generations Buying Homes in 2021*
Generation Z (born after 1997) 2% homebuying market
Millennials mixed with some Generation Y (1981 to 1995) 37% of the homebuying market/ 22% of the home selling market
Generation X (born 1965-1980) 24% of the homebuying market/ 25% of the home selling market
Baby Boomers (born 1946-1964) 32% of the homebuying market/ 43% of the home selling market.
*National Association of REALTORS® Research Group- Homebuyers and Sellers Generational Trends Report
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Here we are at the end of August, two thirds of the way through 2021 and we have about 90 days left to generate opportunities that will pay us in 2021. The most important things to focus on are where you are now, and what you need to do to complete the year strong and move into 2022 with momentum.
With an increase in both purchase and refinance applications last week, 3% on purchase and 1% on refinance, we get the news that home inventories are up better than 5%. All opportunities to make yourself focus on what you can do to get in front of business.
Now is a great time to review every pre-approval you have issued this year but didn’t close. Are they still looking, are they taking a break, or did they close with someone else? The first two present an opportunity to help move them into a home, the last one to remind you to stay better connected to your pre-approvals.
We also need to look at our calendar and map out our plans for the balance of the year. As the kids go back to school, there is usually a rise in listings and resales as people move out of the functional obsolescence of their current homes.
Homecoming, Halloween, Thanksgiving and Black Friday are all times to build around to put yourself out into the market and connect with people in a fun and exciting way! All it takes is a commitment to look at the numbers, workout a plan, gather support, and go have some fun!
While August ends the second trimester of the year; September concludes leaving only one quarter of 2021 left to get it all done and paid for!
As always,
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