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You've Got to Have a Dream
By Joel S. Pate
This morning, I listened to a CD by Les Brown. I met Les in 2005 at a seminar in Las Vegas. I just couldn't get enough of Les' CD, "Bringing out the Millionaire in You." The subtitle of the talk must be "Bringing Out the Dreams in You," because only those that dream big bring out the millionaires in themselves.
It reminded me of the time I had tremendous success growing a business from absolutely zero to $77 million in just two years. It also reminded me of the many times that things have not gone quite as well. Like the three-year period that one of my companies lost 70% of its volume at the exact same time we were forced to reduce our price by 70%.
When times are good, we tend to think we are the smartest person in the world. When times are bad, if you are not careful, you think you are, well, you know.
The truth is somewhere in the middle. I once heard a speaker say: "Never allow yourself to believe the cheers or the jeers." The fact is that we are just human. We know what we know, we do what we do, and we are impacted by outside forces that we have absolutely no control over.
The more you know, the more prepared you will be to take full advantage of the good times, and to limit the impact to your company and to your family during the bad times.
The key element of success is really very simple and absolutely universal: Knowledge is power. More correctly, as Tim Braheem would say, Acting on the knowledge you have is power."
If you have read my column more than once or twice over the past year, you know that I continue to harp on a few very simple ideas.
1. Determine what you will do and what you will not do
2. Continuously learn
3. Implement
4. Measure
5. Re-deploy
6. Adjust
7. Re-deploy
8. Keep learning
If you are still making money right now, I want to congratulate you.
If not, I would like to share the story of a builder I know that began to sell bicycles to other builders back in the 80's. The builder had purchased bicycles without seats or handle bars. One of the builder's consultants asked him, "Who are you going to sell those bicycles to?" The builder answered, "To all of the builders that have lost their ass and don't know which way to turn."
Well, our recent downturn is not as bad as the 80s, but down is never fun.
If you are interested in improving your production, you really must dedicate yourself to taking a few steps and taking them immediately:
1. Start by time-blocking one hour to assess your financial situation:
a. How much money do you have and how long will it last?
b. Analyze your pipeline and compute the real revenue number;
c. Determine your cash flow over the next 90 days;
d. Don't lie to yourself.
2. Write a business plan in your own words that mirrors the 13-15-5 plan that you can find on my website.
3. Mean it.
4. Make an appointment with every referral source that was involved in one of your loans last year even the ones you disappointed. Apologize if you have to for providing less than stellar service.
5. Commit to spending one hour per day studying specific loan programs that apply to your market
6. Commit to eliminating all distractions (small talk in the office, e-mail fixation, smoke breaks with other broke originators)
7. Ask the top five producers in your market to let you buy them a cup of coffee and use the time to pick their brain
8. Work two hours longer per day, seriously (you can probably accomplish this by following No.6).
9. Consider entering the world of off-balance sheet financing for small to medium size builders (many originators can close their first loan in 60 days).
Why do these things? Because they work!
I recently met with a few of my coaching members that haven't yet been able to jump-start their business. I asked them if they understood the action items they needed to take. They said yes. I asked them if they had received any loans. They said no. I asked them if they had actually visited face to face with the builders, met them in their subdivisions, met with their sales people, and made a presentation. They said no. I asked, well, what have you been doing? They admitted to sending a few e-mails a couple of times.
I'll tell you like I told them: "Get off your butt and get into the field to meet with and impress the people that need what you've got to offer. Get out from behind that computer, quit reading your junk emails and complaining about turn rates with the underwriter, the closing and funding staff. Get out of your office and sell something to somebody. Go where people need to borrow money."
Make up your mind that you are going to take an application today. Make up your mind that you are going to visit your referral sources once a week. Decide you are going to meet with and have a true meeting with them, not a drop by. Do this with at least one or two potential referral sources per day.
Having said all of that, having given you my version of an army drill sergeant's view of motivation, I want to tell you that real success only comes to those that decide they must have it. I believe that real success is only born out of a dream, out of a fire in your belly. A dream is something that you can take hold of, something that is bigger than the money, and something that allows you to push forward when the times are tough. It is something that causes you to plan and to focus.
Unlike the benefits derived from money, a dream can actually motivate you. At some point, every person that has money as a goal will reach a plateau. Once you have enough, you've got enough. In most cases, the person will work less, play more, and accomplish less. Without the power that a dream provides, you are powerless to accomplish great things.
Bill Gates' dream wasn't to become the richest guy on the planet. Bill Gates' dream was (and still is) to place a computer on every desk and in every home. The result of the various levels of fulfilling his dream has made him a lot of money. Why does he still work? It's not because of the money. It's because his dream has not yet been fulfilled.
Years ago, I entered the family real estate and construction business. At the time, I was completely in it for the money. I did not have a clue about the power of chasing a dream. I was trying to feed my young family. I didn't really understand the significance the industry played, not only upon the world's economy, but more importantly the significance our industry has upon the very fabric of the families in our economy.
I am proud to say that I have evolved into a housing advocate. Not necessarily for free housing, not necessarily for low income housing, but for ownership. I believe that all families should own a home. (If you'll write to me, I'll send you the statistics on the benefits to families that own their own home.) The first and primary improvement in the life of homeowners is the fact that for many first time home buyers, the purchase of a home is not only a dream of that man or that woman (24% of all homes are purchased by single women) or that family, but many times it is the culmination of the dream of an entire generation or two of that family tree.
Homeownership is the foundation for generational wealth. More than any other single act, purchasing a home, owning a home, and living in your own home, has demonstrated to be the foundation from which all wealth comes for the majority of families.
So you say, "I've never met a first time home buyer. I'm in a different market." That's fine. But, ask yourself a question: Do any of your customers have employees that could benefit from owning a home? I'll bet they do.
Perhaps you are still in this business to make money. Maybe, just maybe, it is time for you to ask a few questions of the families that you assist in accomplishing their individual goals. Maybe, just maybe, if you look into the eyes to the soul of your customer, look to see their real needs, seek to understand the significance that your assistance will bring to them, maybe, just maybe, you will catch a glimpse into the world that I believe is more powerful than money. The world of a dream.
Humans are motivated by fear and they are motivated by dreams. Without a doubt, fear is a motivator. But, dreams have the power to cause you to overcome fear, overcome time wasters, overcome and conquer the industry's knowledge requirements, overcome and conquer call-reluctance and finally to overcome the need to charge your customers too much.
When you have a dream, when you have a vision, when you decide you want to help every family in your market to become a homeowner, or help them lower their rate, or use their equity in a conservative and intelligent manner, or help your customer build a new home for their growing family, or build a smaller home because now they are empty nesters, or purchase or build a second home, or begin to invest for their future by purchasing rental property, and then perhaps finally, assist them in understanding the benefit of a reverse mortgage to assist their family in their last days, then, and I believe only then, will you have the energy, and the motivation, to rise early, work as hard as possible, make more money than you have ever dreamed possible, and finally, sleep soundly after a good day of "doing well while having done good."
The graveyard is the wealthiest place on earth. Why, because, therein lies too many unfulfilled dreams.
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, Mr. 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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