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ARE YOU A LOAN JOCKEY?
By Joel S. Pate
In the last article, we discussed the power of the Lion Tamer's Stool. When a lion tamer projects a four legged stool into a lions face, the lion sits down. The reason: Too many things to concentrate on at one time.
Many of you sent me an e-mail to let me know that the article was very meaningful to you. I appreciate hearing from you and look forward to posting your comments soon.
This week, I would like to expand on a statement I made in that article: You can't be an expert at more than one or two areas of this business. And in this mortgage market, you cannot succeed if you do not dedicate yourself to concentrating on the right niche for your market.
I recently read an article by Dave Hirschman. I met Dave over a year ago at a seminar. Reading the article reminded of a particular comment he made that I would like to share with you now: "Instead of holding yourself out as an expert, become an expert. Instead of telling people you are an expert, become an expert and everyone will tell others for you."
While I completely agree with the spirit of Dave's statement, I would like to add one fine point: "Sometimes you've got to fake until you make it."
Now, don't get me wrong. I firmly believe in obtaining a quantum amount of knowledge in an area of business and sticking with it. That is critical. Over the past 22 years, I believe I have worked in nearly every segment of the real estate industry. I have listed property, sold houses, built houses, developed property, purchased tax liens, purchased foreclosures, flipped houses, remodeled houses, owned mortgage companies, developed a down payment assistance program, developed an earned income program, marketed referral partner marketing newsletters, developed a lead generation and management program, and now, one of my primary companies deals with showing originators how to enter the world of off balance sheet financing for small to medium size builders.
Why? Well, first, I am definitely, at least according to my wife, ADHD. Second, I love to start new companies, work in new fields, stretch myself, and succeed.
Take a moment to read through my personal history again before you go forward. Do you notice something? While I do have experience across the board, all of the experience is still in a very narrowly defined field: The real estate industry.
At this point in the game, I continue to surprise even myself on how much knowledge I have gained over the years. Just being in the same field causes you to learn things that you don't even realize that you have. After 22 years of hard work, making mistakes, overcoming obstacles, a lot of prayer, and even more hard work, I can literally say, without concern that any one will contradict me that I have become an expert in the mortgage arena with linitation. I am not bragging, I'm just trying to make a point.
My point is that with all of the experiences I have had, especially as a builder and owning seven mortgage companies, I was surprised to find out that I had become an expert in a field that I didn't even know existed: off balance sheet financing utilizing the one time close construction perm product. Today, if a builder will give me just a few minutes, I can typically convince him/her that they should abandon the use of commercial financing in favor of the off balance sheet model. How did I become an expert when I didn't even know the field existed? Well, it must be all of the knowledge that I had gained over the years in the industry. It must be the power of quantum knowledge.
Yes, sometimes you do have to fake it until you make it and I did plenty of faking 22 years ago. But as Dave said, if you will become an expert, folks that you encounter will begin to tell others. Before long, you will have a following and that following will turn into a great business.
You may not be an expert at anything at this point. If not, that's cool. But, don't let that be the last word. Sit back for a few minutes. Think. What am I good at? What do I really like to do? Which customer's have I enjoyed working with the most? Which type loan program do I prefer to use? What makes me happy? What do I know? Who do I know? If I chose a particular niche, who could I count on to be a mentor?
Why do I think you should ask these questions: Simple? Life is too damn short to become an expert at something you don't like and will not enjoy day after day.
That reminds me of a story. Recently I had a toothache. While waiting on the dental assistant to develop the X-ray, I thought to myself: "You had better really like saliva and blood on your fingers if you choose to become a dentist." My wife is friends with my dentist's wife who just happens to be a dental hygienist. She told my wife that she brushes her teeth up to ten times a day. Can you imagine how clean you would need to keep your teeth if it was your job to look at others people's dirty rotten smelly teeth all day? It's got to be a hard job. It certainly would be for me. But, I suppose not for the dedicated dentist.
I want you to be happy. I want you to make a lot of money. I want you to succeed and have a flow to your life, to your business, for your family. I am convinced that this level of success demands a plan. It demands dedication and determination. It demands work. First and foremost, it demands that you think, make up your mind, and proceed down a long path, on purpose.
Years ago, a teacher told me: "Day's of preparation are never wasted." I think he is partially right. I'd like to edit the statement to add: "Day's of gaining a quantum amount of knowledge in the field that you end up spending a quantum amount of time in are never wasted."
Whether you decide to look into the off balance sheet finance niche or concentrate on working with CPAs and financial planners, the fact remains that you must become an expert to really succeed in this business.
So, what will it be? Will you determine as a New Year's resolution to buckle down and become an expert or will you continue to be a loan jockey that rides any old horse that someone will let you ride?
Dedicated to coaching YOU to CP Loan Success!
Joel S. Pate
To review last year's articles or find out more about the exciting niche market of off balance sheet financing to small to medium size builders; contact me via my website at www.vadiumgroup.com/cpexpert.php.
Joel S. Pate, a dedicated entrepreneur, has spent more than two decades in the building, mortgage, and real estate industries and has been involved in over $100 million in construction loans and over $4.5 billion of residential lending.
As the CP LOAN EXPERT columnist, Pate provides straightforward, unbiased advice about every aspect of construction permanent lending. If you ever wanted to unravel the mystery surrounding new construction lending, then you should tune in.
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