Latest / Mortgage Marketing Radio / Ep 142: Funding a Record $50-Million in a Single Month

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Ep 142: Funding a Record $50-Million in a Single Month · Mortgage Marketing Radio

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Welcome to Mortgage Marketing Radio.
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I'm brought to you by the Mortgage Marketing Institute, your number one source for truth
1:24
in Mortgage Marketing.
1:25
Hey, what's up listeners, this is Jeff Zimper, your host for another edition of the Mortgage
1:32
Marketing Radio podcast.
1:34
Welcome.
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I am South Reel, you're here.
1:36
I appreciate you and I hope as you're listening to this, you're preparing for a strong closing
1:42
to 2019 and perhaps equally maybe even more importantly, preparing for entering 2020 and
1:51
preparing for the shift, the tide, perhaps going out.
1:57
You know, I've said before, maybe you've heard it, me say it, I borrow this from Warren
2:00
Buffett, who says you never know who's swimming naked till the tide goes out.
2:04
Well, we're talking about preparing for the tide going out, we're talking about how to
2:09
shift when the market shifts or actually prepare and get in front of that shift so you're
2:13
not caught off guard and you're not swimming naked.
2:16
And we're talking about all those types of things on this episode.
2:18
But before we get into that episode, I want to give a special shout out to one of our loyal
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listeners who left us a review on the podcast.
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And that is Sedebaz, I don't know how you pronounce that, but his handle, when he left
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us a review as SETBOZ, what an amazing resource this podcast has been absolutely amazing for
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me.
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I've been in the industry for two years, starting as a processor, then as an L.O.A., and
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now making the transition to originating clones.
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The industry knowledge and insight is second to none.
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Woo, thank you.
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Appreciate that.
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And if you're listening, you know what to do.
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Hit me up on the Facebooks and let me know that you left a review, what you're mailing
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whatever it is you want to do with it, wear it, enjoy it, wear it proudly, hopefully you
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do.
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Okay, so let's get into what this week's episode is all about.
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I kind of alluded to some of the things earlier, but it's a really great frank conversation
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who comes from somebody that I've been following and respecting for quite a while in the industry.
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He's been in the industry a long time.
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He's a little either in the industry and he's really achieved some amazing things.
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And who I'm talking about is Ryan Hills.
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Ryan Hills is a market leader with movement mortgage up in the Seattle area and recently
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became part of the movement mortgage family with the acquisition that movement made of
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Eagle home loans, Eagle home lending.
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And so I wanted to have Ryan on because he caught my attention the other day and actually
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always catches my attention because not only is he handsome and dashing, but they actually
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have a great channel, a great website.
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Ryan Christianson, who have been producing and creating videos, a video show for a decade.
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And we're going to put links in the show notes and all that, but it's the resource.tv.
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I've had Ryan on before and this is the second time because things have changed and now
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the time is to bring Ryan back and talk about the topics we're talking about here today.
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But I definitely encourage you to go follow them on the socials, hit them up, just search
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for the resource, the re-source, right, dot tv, Facebook, that's the website, links in
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the show notes, incredible videos, interviews, master classes.
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And it's somebody he's somebody I look to for insights, context, and all kinds of learnings
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within the industry.
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So what Ryan and I unpack is recently him and his team of about, he's got about 17
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L.O.'s on his team recently achieved a milestone for monthly production.
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And that was 50 million in terms of originations, 50 million.
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There too that and he talks about this on this episode prior to that, right, what they
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had achieved historically in terms of a high record month was, if I remember correctly,
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30 million.
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And he had a conversation with his coach Bill Hart and said, great, what's next?
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And somehow the number 50 million came out and lo and behold, here they are, they've
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actually achieved that they did $52 million in a single month in terms of origination production.
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And what you'll find is that that wasn't by, you know, having a mega producer on board
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and doing 10 or 15 million, right, it's because of the makeup and the culture and the players
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and the leadership that Ryan provides.
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And all pulling the rope in the same direction as a team and performing at a very high level
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in this marketplace.
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So I thought it would make sense to unpack a little bit about, you know, the process
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he went through to move his team forward in achieving that record level of production,
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some of how he might train and coach his team, build a team.
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And then we get into a conversation that I think is definitely in his wheelhouse, which
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is, you know, the case for video and social media.
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And do you need that as a loan officer, a real estate professional to succeed?
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We talk about the I buyers, which are heavy up in his area of the Pacific Northwest.
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We talk about how the board of realtors up there in Washington is the first to change
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the structure of the real estate commissions that's related to a lawsuit that was recently
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laid upon the National Association of Realtors.
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It's actually just a great multi-dimensional conversation.
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I think you'll definitely pull a lot of nuggets out as you listen to this.
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And if you like it, hey, let us know, leave us an episode.
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You can always reach out to me over email as well, podcast at Mortgage Marketing Radio.
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So with that said, let's get into this week's show, Ryan, welcome to the show.
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What's up, man?
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Thanks for having me.
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Thanks for being here on short notice and without much of an agenda to be honest with you.
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But here's the thing.
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What caught my attention is the incredible month that you just had as a market leader at
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movement mortgage.
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Before we get into that, how long you been in this business now?
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Around 15 years.
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15 years, right?
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Okay, got it.
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And so let's just unpack it.
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You've had, is this your biggest month ever?
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It is.
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And I love that we don't have an agenda because now we have no confinement, we can just
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go anywhere we want.
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This is open mic Friday.
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Exactly.
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I love it.
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We can go anywhere.
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Yes, this is by far the biggest month that we've had before that.
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I kind of tell the story in the video that it was weird, man, I was nervous to have that
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video.
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I don't know if you saw it online.
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It was basically me at home with some bourbon and I do video every day and I got super
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nervous about that one.
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I don't know why, but you said you drink bourbon every day?
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Yeah.
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Is that what you're taking away?
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I tried to, but yeah, I tell the story in that video where we rallied as a group and
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we were trying to hit 30 million and collapsed across the finish line when we did that.
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We had to like pull some rabbits out of the hat to make that happen the last day.
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And then talking with my coach Bill Hart, he said, hey, what's next?
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And for some reason, I skipped the $40 million mark and I just said 50 and I kind of threw
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it out there before I could take it back and I was like, crap, he's going to hold me accountable
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to that.
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Quite honestly, it wasn't quite sure if we were ever going to hit that because for me,
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I don't have the biggest team in the world and that's not the most volume in the world.
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But it's a big number to us, 52 million with a small, efficient group, was by far our
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biggest record and now I got to figure out what's next, right?
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All right.
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Now, so let's unpack this a little bit because this is, I think, where the nuggets are going
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to be is 52 million, first of all, that's a hell of a number.
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That's amazing.
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Congratulations.
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Let's talk about your team.
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What's the structure and the makeup of that and just to clarify your role as a market
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leader, right?
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What does that really mean?
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And then what's, give me your team.
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So it's a market leader at movements like an area manager.
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I have a small area, which is South Washington kind of and we don't have big mega branches.
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We don't have a ton of originators.
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We have a really small team.
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So my area encompasses like my main office and Puyallup.
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People have never heard of it, small town.
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And then Tacoma, people know that and we have satellites and Lacey's and these are like
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satellites.
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These aren't full branches with, you know, five to 10 originators.
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Usually there's two to three originators in each one.
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So Lacey, Tacoma, Gick Harbor, Porto Richard, Silverdale, kind of a small relatively
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unknown area.
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So that's why I'm proud of that.
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Like we're not Bellevue, you know, we're not Seattle, we're not San Francisco, we're not
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LA, New York.
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It's just, you know, Cowtown, Puyallup, Washington, you know, cranking out 52 million.
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So how many LOs report to you?
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I think right now, 17, 18, maybe 19 total, 17, 19, 15 and you've got some, some leaders
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on that, that the team who are kind of out at the front, right?
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Yeah.
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So our top producers last month to put that in perspective.
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We had, I think we had two that did five million a month.
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We had a few that did four, we had several that did three and then, you know, two million
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and one million.
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So our leaders are doing, are doing about four to five million a month right now.
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Hmm.
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And I'm asking because I'm doing the math like quickly in my head because what, what
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one might think is, oh yeah, you know, you got a couple mega players on your team that
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are doing 10 million, 15 million, whatever, you know, that's not the case though.
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No, it's not the case and, you know, it's funny.
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There's always somebody bigger, better, stronger.
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So, um, got a lot of good feedback from the personal video, but I also were, we're, I
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was talking peers, uh, in the same town and a girl down the street that I have a tremendous
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respect for, a different company, be equity, I don't mind saying it.
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She did 13 million by herself and I was like, well, I felt good about our numbers.
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I heard your individual number of 13 million and then another body of mine did a 10
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11 million back to back.
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So there's always bigger, stronger players out there.
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I love our team.
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I'm super happy.
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We have good people, uh, like I said, it's not the biggest number, you know, we hopefully
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will do 500 million this year as a group and I do think that's a big number, but it's
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not the biggest, you know, I'm proud that we have a really good solid team.
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We all help each other.
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Like if somebody has a tough, tough file, you know, it's very common for us to rally in
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that office and you'll see four or five originators going, who would try this or try it
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this way, try it this way.
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It's not this, you know, you're on your own type and mentality.
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We're all rallying together and, you know, we all kind of pull each other up because
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our group's been together for a decade, which I'm proud of too, because that's not normal
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for our industry, right?
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So I'm proud of that.
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We've been together for a really long time and we didn't start there.
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Most of our originators, I remember thinking and when we'd celebrate a million dollar
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a month, that was a big deal.
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And it's still, you know, a big deal, but now you got some of your peers doing two,
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three, four and five million.
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So it's pulling up the rest of the teammates, you know what I mean?
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So it's kind of cool that we've organically grown together.
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We don't have a ten million dollar a month type person yet.
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Right.
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You will.
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You will.
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I know that we will though, because we're going to continue to grow together.
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And it's a young team.
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I'm the old guy now, which is weird, because I used to be the young guy in the business.
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At 32, you're the old guy.
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Yeah.
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I look like I'm 52.
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Yeah.
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All right.
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So here's a question.
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I'm going to go deep for a moment.
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The transition, the road, the journey, right?
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The last kind of big hook number you hung your hat on was 30 million.
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You had to be somebody to achieve that number at 30 million.
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And then you make this big leap to 50 million.
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Give me a sense of like the feelings that came up for you when you put that out there
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as a commitment, like your story about Bill and he was going to hold you accountable.
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But who did you, like looking back, who did you have to become to go from 30 to 50 million?
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Like, what changes do you think you had to go through as a leader as a person, right?
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To get there?
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Yeah.
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That's a good question.
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It's a loaded question too, because one would easily say the traditional method is just
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adding more players, right?
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Mm-hmm.
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Well, we simply got there because we hired 10 more originators.
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That's actually not the case.
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We didn't add originators between 30 and 50.
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We stayed, again, really, really small and efficient.
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So how we got there was really to kind of, to your point, kind of going deep with the originators
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like, hey, man, how can I help you grow the business?
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And I love doing it.
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That's my individual-wise with originators.
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Like, I want to roll up my sleeves to figure out how to get, you know, get you from, you
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know, from here to here type thing.
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And so that's how we got from 30 to 50.
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It's with the same exact team, which is really cool.
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And individually, the originators grew their business and that made up that 20 million
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dollar gap.
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I think that's really cool because it's easier and probably more traditional just to go
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higher out.
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Mm-hmm.
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And I'm contrarian in that sense where I've always been the guy that just because I have three
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empty seats in an office, I'm not going to go higher to fill those seats.
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And that's not typical for our business.
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I've been the guy like, I want to find I have something special, I believe.
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I think it works at a high level.
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We have great people.
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I'm very particular who I add to that team.
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Right.
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Again, I think that speaks to why we've had people for a decade or more on that team.
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So we had to get from 30 to 50.
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We had to individually grow and collectively grow together.
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It wasn't adding, you know, originators to that.
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And so for me, it was just kind of doing what, you know, what I normally love to do, which
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is digging in and saying, you know, Miguel, Brian, Steven, you know, how can I help you
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grow your business?
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Leslie, how can I help you grow your business?
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All right.
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Let's take it back a notch here.
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So did you go to your team and just say, Hey, guys, guess what we're going to do?
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We're going to go from 30 to 50 million.
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No, actually, I didn't even though I've never really been a big goal guy.
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And as you as you grow in your career and like executives, like goals have become a thing,
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right?
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Right.
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I've always been a guy like, Hey, man, I'm going to control my daily, weekly and monthly
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activities.
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And if that equals 60 million, then that's going to be 60 if that equals 30 million,
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that's going to be 30.
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You know, I'm going to control, you know, the daily and weekly and monthly.
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And typically, if you really focus on that, you can blow whatever goal that you have out
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of the water.
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Right.
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You know, because you're controlling and you're giving, you know, that there's an old saying,
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like, give me your, your full 90 for like soccer, give me your full, your best 90 minutes.
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That's kind of like my takeaway for work.
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Like, dude, I don't even need you to work weekends, but give me your best 40 hours.
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Mm-hmm.
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And if most of us really truly committed our best 40 or the full 90 in the analogy, you're
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going to blow a lot of your records out of the water.
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And so I don't remember saying like 50, I don't remember telling the team 50 million
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was the goal.
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Mm-hmm.
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I don't even know if they knew that.
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I think when I just shared that we broke it, they were kind of surprised like, Oh, that's
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a big number.
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I don't know what you're shooting for that.
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Really?
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So what happened internally, though?
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I mean, I'm just curious, right, because you're operating probably at a certain level
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or certain mode and people are doing certain activities.
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But then you know, you've kind of got this number in your head.
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You're not necessarily saying putting up the whiteboard and the thermometer, you know,
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and all that.
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Did people do things differently, did what did things shift differently in your office
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in terms of like the culture, the vibe, the activity level?
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That kind of sort.
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Yeah.
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One thing I think that is a factor contributing to the 50 is, you know, if most people
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may not know our story, but we just joined movement.
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And when we joined movement, that's a big deal, right?
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We brought a lot of people over, transitions never fun, like sometimes there's attrition,
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sometimes people will get stressed out and there's no volume to be had for a while.
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Like that, we hit the ground running at movement and we found ourselves way, like our efficiency
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increased to increase through the roof.
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So, you know, what used to take two people now takes one, so our efficiency increased.
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And then obviously, you know, you know, I got to tip my hat to the refi boom, obviously
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that helped.
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So I got to give credit there.
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We got a refi opportunities, but we became way more efficient at movement with the 671
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process.
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Our, our L.O.A.s were way more efficient, our processors were our underwriters were.
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So those are a couple factors that, you know, how did we get there like the X's and O's?
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That's the answer, not just an isoteric, you know, answer, but the actual X's and O's
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is we're way more efficient.
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We are able to restructure some of the L, L.O.A.s to where they can actually help more
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than just one L.O.
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And help two and three.
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So those are two big factors.
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I got to give credit to movement because, typically, I think those results are normal,
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you know, during a transition to go, hey, we showed up and then start crushing records.
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Yeah, yeah.
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Maybe I'm wrong.
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I just don't think that's typical, but I was pleasantly surprised.
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And, you know, being a leader through that move from eagle to movement, it was a stressful
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time.
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We could have a whole entire podcast on that.
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But at the end of the day, when you put people first, the only thing, the only reward
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you get back is when you can look back to that scenario and you have several options.
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You have options individually.
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You have options as a team.
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You know, you have options as a region to several options.
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And if you can go back and go, I know that I made the best choice for the entire group.
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That's all you can do.
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If you can say that, then you've won because I mean, that's hard to say that that was
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the best possible option out of all of the options that existed at that time.
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And I feel that way.
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I feel that way for the entire group that that was the best possible option for us at
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that time.
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And, you know, the results show that that we hit the ground running in our crush and records.
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Let's do this if you wouldn't mind for those listening.
18:41
You know, many of them know that I'm a national sales coach with movement and stuff.
18:44
And so they've heard me occasionally mention movement.
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I don't like to kind of like, you know, use this as a platform or whatnot.
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But I know I've come across a lot of officers out there who have various responses or certain
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beliefs about the process.
18:58
And you refer to what allowed you to grow wasn't necessarily hiring more bodies, but you
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were able to be more efficient, do more with less, break that down for the specific loan
19:08
officer.
19:09
And I know you've had the conversations with L.O.'s where, you know, movement's touting
19:13
its upfront underwriting process.
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What does that really mean, you know, to an individual loan officer if they are looking
19:19
to grow their business?
19:20
What's the real impact?
19:21
Can I really, is that just a bunch of smoke and mirrors?
19:23
Hey, everybody does quote upfront underwriting.
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Can you unpack that a little bit?
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Yeah.
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And, you know, I'm glad you said that because on our show for over a decade, we've created
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content.
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I've never mentioned the name of a company.
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Most people don't even know what I do.
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So again, this isn't, I'm not trying to like,
19:39
Ailey, they wonder that.
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You know, movement on a pedestal, but they did.
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They're part of my story.
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They're part of our story.
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And it was a huge help and a huge blessing.
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And it's just part of the story.
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So that's why I'm referencing it.
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I'm not trying to say that they're better.
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Plus, I ask you.
19:53
So.
19:54
Yeah.
19:55
But that was the 6-7-1 process.
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You know, yeah, sure.
19:59
People do upfront underwriting.
20:01
But it was a shift for us because at Eagle, great company, tons of respect, nothing bad
20:07
to say about them, lots of success.
20:09
And we didn't struggle to close like all in time.
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That wasn't a struggle of ours.
20:14
We weren't as efficient, but we didn't close late.
20:17
But we never really like did any upfront underwriting.
20:20
And so a lot of that was, you know, we would work really hard up front to structure really
20:25
clean deals so that we wouldn't be going back and forth.
20:28
We wanted fewer touches with the underwriters and the processors, and we'd call them like,
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you know, one in Dunes and stuff like that.
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And so that's why we were able to, in a process that wasn't as efficient, we were able to
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close what we call on time every time.
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That was our goal.
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And it still is, right?
20:43
And it's tough.
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It's crazy that just doing your job sets you apart from the rest of the industry, but
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it is.
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It's tough to close on time, especially as volume increased out of nowhere.
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Every lender in America is struggling to hire ops to support that because I think the
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stat was $286 billion worth of business nationwide was unaccounted for by the MBA.
21:08
Really?
21:09
Yeah.
21:10
Like, so if you go back and look at the original prediction to what we're doing now,
21:13
that's a gigantic gap.
21:14
And we didn't have, we still don't have the ops nationwide.
21:16
I mean, I just read an article that Wells Fargo is still trying to hire to, to staff
21:20
up for that.
21:22
So sidebar anyways, but that didn't hurt us as much, you know, movement's no different
21:29
than anybody else.
21:30
You know, we're, we're short handed and off, but we are more efficient.
21:32
So it doesn't hurt us as bad.
21:34
So for us, we switched kind of our strategy and said, oh, now we have this opportunity
21:41
to submit a file and get an answer back in six hours, not days, that's, that's crazy
21:48
to us.
21:49
That was weird that we had that, that ability to do that.
21:52
And so it took a, it took a few months to get, to get used to that.
21:56
And it's not all of our originators do that.
21:58
It doesn't mean you have to submit every file upfront, some, some don't, but a lot of
22:02
them, especially when you're doing like a tough state bond deal or maybe you got tough
22:06
income that varies.
22:08
It's nice to be able to go instead of like, man, I hope this works.
22:11
You know, and you're, you're running to you and LP and you're, you're hoping and praying
22:15
it works.
22:16
You don't have to hope and pray anymore.
22:17
You can package that deal together, actually get it in an underwriters hands and have them
22:22
start working on that and feel really confident.
22:25
I'm passionate for their consumers.
22:27
So the fact that we send consumers out, we just did another podcast yesterday talking about
22:31
this.
22:32
And as an industry, we send consumers out on this 30 60 day process based off of, yeah,
22:39
looks good.
22:40
I think that's horrible.
22:41
And in our scenario that we talked about yesterday and an, an originator, uh, won't name names
22:46
or brands, but they basically did that.
22:48
You know, you, you get the app, you're like, yeah, you're probably good to go and they
22:50
write a pre approval letter.
22:51
Yeah.
22:52
It wasn't a fully underwritten pre approval long story short, it costed $5,000.
22:56
The way that 66 days lost the house were homeless.
22:59
And it was all because, and I don't think it was ill intent by the originator, but that's
23:03
kind of the, the standard of, yeah, you're, you're good to go.
23:06
Here's your pre approval letter.
23:07
Right.
23:08
Right.
23:09
We got to do better as an industry.
23:10
We have to do better.
23:11
I think that up front underwriting process that we have for 671 and other lenders do
23:14
it as well is a part of that.
23:16
Like, how do you set yourself hard to set yourself apart from the fintechs?
23:20
This is one of them.
23:21
Like, let's give a lot of respect to that, that consumer because if that were me and
23:25
I know for that where you, you wouldn't want to be going shopping.
23:28
We're really having financing ready for you, spending money on inspections and appraisals
23:33
and earnest money.
23:34
You're never going to get back.
23:35
Yeah.
23:36
But that's what we're doing, guys.
23:37
So we have to do a better job collectively up front than the good old, yeah, you look
23:40
good to go.
23:41
Right.
23:42
Let's, uh, for those that are curious what 671 means, do you want to just real quickly
23:47
summarize that?
23:48
Yeah.
23:49
So it's a six hour underwrite.
23:50
Uh, we try to process the file and processing means different things to different
23:53
lenders.
23:54
We want to try to have basically everything processed with conditions in seven days.
23:59
And then you have like, you know, your one day closings.
24:01
So, um, it's kind of cool, uh, cause all of our ops leaders in case you follow that and
24:08
celebrate that.
24:09
And, you know, of course, it's not 100% that we hit that, um, and I, I'll probably butcher
24:13
their stat.
24:14
Maybe you know, but I, I think every time I check in, it's about 78% of the time we're
24:18
hitting that, which I think is a really cool stat.
24:21
Yeah.
24:22
The, the point is like, from the top down, it's, it's, it's the DNA of the company, which
24:27
why, you know, one of the reason it, it, I was attracted to it originally.
24:31
Uh, but yeah, that's, that's kind of the 671 process.
24:34
And, um, again, this is a tough business and, and closing on time for the rest of the
24:39
industry is still a challenge, especially for the banks and credit unions.
24:43
Yeah.
24:44
Um, and this is, this is something KC to his credit and, and the movement built from
24:49
day one.
24:50
That's something they just did this year.
24:51
This was day one, 10 years ago.
24:53
Yeah.
24:54
Yeah.
24:55
So they're not trying to like add little widgets and parts to the huge mothership that's
24:59
already moving forward.
25:00
It's been built from the ground up to be structured this way.
25:03
So I've heard other L.O.s kind of, you know, iterate that point that, uh, that's why it
25:08
works as well as it does at scale is because the company was built in the ground up like
25:12
that.
25:13
Yeah.
25:14
And we saw, I mean, you're, you're kind of asking more details about why we are more
25:16
efficient, but we saw our underwriters.
25:19
You know, almost, almost double the production coming, again, from a good platform to movement,
25:24
you know, good to great, you know, they're, I don't know what the status of talking about,
25:30
but I could pull it, but say they're underwriting 10 files a day.
25:33
They went to, it was close to double almost 20 files, same with processors.
25:37
I had a, I had hired a processor that came from another company that was, she wanted
25:43
to process the, and she wasn't a processor yet.
25:45
She just wouldn't give her that opportunity to say, come on over and we train her.
25:49
And so I'm so proud of her because in her third month as a new processor that another
25:54
person wouldn't give an opportunity to, she closed 52 transactions.
25:58
So to put that in perspective for us, another good company that we came from, like crushing
26:04
it was 30.
26:06
And we went to 52 with like a brand new processor in three months.
26:09
So another example of being more efficient, I was so proud of her.
26:15
That's awesome.
26:16
Man, systems matter for sure.
26:17
Efficiency is matter.
26:18
And the other, I guess, last point on that we'll move on is when you're confident in
26:23
your process and you know you can deliver on that kind of promise, right, of like you,
26:28
you had a great line, by the way, that's a great branding thing on time every time.
26:32
Like I mean, if you could stand confidently in that when you're speaking to a realtor
26:35
or somebody else, that's one of your value props because a lot of people speak it, but
26:38
the fact that you have stats to back it up, like you said, about 80, 79, 80% of 10,000
26:44
files close within those, you know, the 671 timeline.
26:48
That's huge.
26:49
It is.
26:50
It's we, again, we, we do a lot of videos.
26:52
So we had another video just yesterday.
26:54
We were talking exactly about that and it's an untanageable.
26:57
You can't measure it.
26:58
But the confidence that a loan officer gets from a great op system behind them closing
27:02
on time every time.
27:03
Again, you can't measure that.
27:05
But I've seen originators in our team come from something that wasn't working successfully
27:11
and say they didn't have a lot of confidence.
27:13
You can kind of see that how they hold themselves, how they like talk to a realtor.
27:17
They're not, they're not very, you know, you actually see it physically.
27:21
You can see it change when they go from not having a system they're confident on to,
27:25
yeah, man, we're 100% closing on time every time if not early.
27:29
That's the third part of that, my phrase.
27:31
And you'll see their business grow because they, now they're walking around town,
27:35
their chest is out, they're confident in the product that they're selling, which is themselves
27:40
in their company.
27:41
Right.
27:42
And so I, you can't measure that, but I've definitely seen that in my career when, when
27:45
an originator gets that, that awesome team behind them, you're going to see their volume
27:50
increase.
27:51
You're going to see their sales activity increase too, because you're confident in what,
27:54
in what you're selling, right?
27:55
Well, you're only as good as your whole team, you know, you're like, uh, let me see what
27:59
the game was watching last night, oh, the giants and the patriots, you know, to be able
28:03
to hang out there in the pocket and, and have confidence in your team that they're going
28:07
to give you, right, the, the ability to execute and make those plays, then you feel confident
28:12
to friggin' just like make that happen and like you're, you know, so we, we attempt at
28:16
a sports metaphor there, but, you know, the patriots are awesome examples of that.
28:21
I went from hating them because they beat us in a Super Bowl of Hawks to having a ton
28:27
of respect for Belicech and, and talk about a system, right?
28:30
They can take almost anybody and put them in that system.
28:33
It's coaching, it's leadership, it's system.
28:35
I mean, how many different receivers have, has Brady had even just this year?
28:39
Yeah.
28:40
And guess what?
28:41
He makes a super star out of all of them and, and then the, I mean, the, the masterful
28:45
defensive strategy against the Rams last year.
28:48
I mean, those guys were explosive and they made him look like a junior varsity team.
28:53
That was all coaching and scheme.
28:56
That's so brilliant.
28:57
And so I'm still not fans, but I have a tremendous matter of respect for Belicech.
29:00
There you go.
29:01
That's healthy.
29:02
That's healthy.
29:03
Thank you.
29:04
Thank you.
29:05
Appreciate that.
29:06
Because you know I'm from New England, originally.
29:07
I don't know if you like me.
29:08
Yeah, I'm giving you a, I just will not put on the jersey or support there.
29:11
All right.
29:12
Fair enough.
29:13
All right.
29:14
Let's get back into that.
29:15
Oh, by the way, if anybody's so, guys, you heard the whole thing about movement.
29:17
If you're listening and you are possibly in a position for considering a change, hey,
29:21
reach out to one of us, right?
29:22
You're not going to hit us up.
29:24
Happy to tell you what's real the truth, right?
29:25
No fluff.
29:26
Okay.
29:27
So you have a team about about 15 or 17 L.O.s, you said, if I'm correct.
29:34
What do you, and you've been doing this a long time, the market is crazy, busy.
29:39
It's more competitive than it's ever been.
29:41
We're going to get into some of the disruption in a moment.
29:43
But just what do you, you know, how do you coach your L.O.?
29:48
Like what are you seeing that works repeatedly, successfully, regardless of the market?
29:55
Everybody's different.
29:56
So it's really interesting.
29:57
I wish I could just say, like, this is exactly how I coach L.O.
30:01
Some don't even want the coaching.
30:04
And that's fine.
30:05
And some do.
30:06
And so everybody has strengths and weaknesses.
30:09
My job is to figure out, you know, the yin and yang.
30:12
How can I, you know, add some, some strengths to, uh, I have originators that are great at
30:19
the ops, you know, they could put the best file together ever.
30:22
And that is a strength.
30:23
But if you can't go out and meet people, then that strength is never realized.
30:28
So I have to figure out how to coach that up, that, that sell side up, because they definitely
30:33
have the strong upside, they know guidelines like the back of their hand, they can structure
30:36
a file better than, you know, some of the best sales people out there.
30:41
And so my job is to figure out that yin and yang, like, how can I compliment them?
30:44
Where do they need to be complimented?
30:46
We have originators that are amazing sales people.
30:49
But they, they struggle putting files together.
30:52
So I got to figure out a lot of my job is, is team building.
30:55
So what type of L away, because L always differ and also, and how they're used differ based
31:00
off brand and strategy.
31:02
So is this a sales person that really shouldn't have their hands in the file or have, you know,
31:07
be in the L OS?
31:09
Most people would kind of make fun of that person, like, oh, man, you don't know how to,
31:12
you know, put a file in the L OS.
31:14
I'm like, I don't care if that person can go out and make it right and bring in, you
31:18
know, attract realtors and referral partners.
31:22
That's of tremendous value.
31:23
My job is then to find a compliment person that is, you know, strong and opts again, again
31:29
and yang.
31:30
It's a compliment, you know, his strength or weakness.
31:33
And so that's, that's what I do a lot is trying to figure out, you know, what's the missing
31:37
piece to that?
31:38
If it's a sales person, typically it's an ops type L away and that's a tough one.
31:43
We can all talk about, you know, L away strategies and finding the right fit and there's
31:46
a lot of turnover, turnover there and then you can talk about scaling a team, having
31:50
a second and a third and a fourth L away and there's a lot of turnover there.
31:54
If you interview a lot of mega producers, so that is not an easy process.
32:00
And if you're constantly going back and hiring people, it's not something you can scale.
32:06
An originator can't scale their business if they can't, again, back to my analogy with
32:09
a strong ops team.
32:10
It starts with a strong, you know, sales support, a loan officer assistant.
32:14
And so everybody's different.
32:15
My job is to figure out how I can help, you know, add that missing piece.
32:19
I like that.
32:20
I like that.
32:21
It's kind of modular for you, if you will, right?
32:23
So let's play to somebody's strengths.
32:25
Let's not take this rainmaker who knows how to kill it and generate business and try and
32:30
force them to right fin into this, you know, square peg or whatever.
32:34
Let's let them, let them sell, let them be free.
32:37
Go do what they do best.
32:39
I've learned that so many times in my career that people thrive, you know, like the book
32:43
start with why you're like, when you put them in a position of doing things that they're
32:48
good at and they're happy, they thrive.
32:50
Yeah.
32:51
They don't even need a whole lot of coaching and managing at that point because they're
32:54
in the right, the right spot, whether that's going to be an originator that I tell them,
32:59
hey, dude, don't even touch the computer, you know, most of you be like, oh, that's, that's
33:03
horrible strategy.
33:04
Is it?
33:05
I mean, it's going to do 50 million this year.
33:06
I don't know.
33:07
That's a horrible strategy.
33:08
Now, if I force that guy to go do something that he's not good at, right?
33:11
Now we have a rub situation and things fall apart.
33:14
So I try to, in overall 10,000 foot, 10,000 foot level strategy for everything, not just
33:20
sales, L.O.A.'s processors, like I'm trying to figure out how to put people in places where
33:27
they thrive.
33:28
And if I see that they're not thriving, I'm going to try to make a tweak and maybe that
33:32
is a different type of ops.
33:34
Maybe it's a different type of sales, but I'm always looking at that.
33:38
And once you get those people in those places, again, it's not like, there's not a whole
33:42
lot of micromanaging there to do because they're happy.
33:45
People are happy.
33:46
What are they doing?
33:47
They're selling in their jobs.
33:48
Right.
33:49
You know, again, part of our team, I don't have to ask the ops people that work overtime.
33:53
Never, never.
33:54
I don't think it wants to 15 years.
33:55
I'm like, hey guys, I'm going to need you to work this weekend.
33:57
Guess what?
33:58
They just do, man, because they're bought in, never wants, and they, and they do, they
34:02
work, they work overtime all the time because they're hustlers as well, and they're
34:05
happy in their position.
34:06
They're cranking.
34:08
You do a good, good hiring, and but plus your culture and your leadership is really
34:11
good.
34:12
Yeah.
34:13
What makes the difference?
34:14
All right.
34:15
Well, let's pivot a little bit because I want to get a little bit tactical for those in
34:17
my audience and in ways who are listening, you may not know that Ryan, you and the other
34:22
Ryan RC have been running a show for 10 years now, right?
34:26
Yeah.
34:27
10 years.
34:28
That's amazing.
34:29
It's called a decade.
34:30
So 10 years.
34:31
So it's called the resource.tv.
34:33
You guys are just really awesome with video and education, and at first of all, a lot of
34:37
funny stuff, too, but your quality, I've seen your quality like in terms of production value
34:42
has grown a lot, you know?
34:45
But what I want to ask you about is this, right?
34:46
Because it's mostly L.O.'s listening, and everybody's like tuning in for what?
34:50
The nugget, like, give me the thing, you know?
34:52
You had a video you posted, and we're going to put links in the show notes to your stuff,
34:55
but I'm looking at one, the topic is the case for video and social.
34:59
Yeah.
35:00
But I'd be curious to ask you, because you're clearly a video guy, right?
35:04
And perhaps a social guy as well, you know, in terms of like buying into social.
35:08
Oh, sure, yeah.
35:09
Okay.
35:10
So I'm curious then back to kind of the general coaching question, like, what do you
35:14
seeing L.O.'s do to succeed?
35:16
Let's just have a brief dialogue on, I don't know how to phrase it other than, does somebody
35:21
have to be doing video or be in on social?
35:26
Do you think to be a successful L.O. today?
35:30
They don't have to.
35:31
I mean, I know you talk to a lot of top producers.
35:36
You know, I had an interview recently with a girl in the East Coast that's going to do
35:40
like 75 million.
35:41
She doesn't touch social.
35:42
So I guess that's the short answer.
35:44
You don't necessarily have to.
35:46
I just talked to a good friend of mine, Jordan.
35:48
He calls 9 million last month in Denver.
35:50
He doesn't touch social.
35:53
And so he flew out and hung out with me for a day.
35:56
And I was just trying to say, like, hey, obviously what you're doing is not broken.
36:00
I just want to say, like, what would Jordan look like if he did add the social aspect, man,
36:04
because social is huge.
36:05
I mean, it's a gigantic opportunity.
36:08
And it's not the end all be all and you don't have to do it.
36:12
There's certainly people winning without it.
36:14
But I just wonder if you're doing 100 million or if you're doing 10 million a month and
36:19
you're not touching at all, what would you do if you were leveraging the power of social?
36:24
I mean, because I, you know, if you asked me like, hey, 10 years ago when it was just
36:29
you and RC and nobody, how did you grow the team to 52 million?
36:32
I would say my best strategy if I had to pick one was video mode.
36:36
I attracted most of the awesome talent that works on on our team because they saw the
36:42
show.
36:43
They kind of got to know me.
36:44
They figured out, oh, he's not an idiot.
36:46
It seems like you know, something is personable and that would be my one strategy if I had
36:51
to do it all over again.
36:52
I'm an leverage social to get the word out.
36:55
And so we have another show.
36:57
If you look it up on the rsource.tv called the respecting the psychology of social media
37:01
and that kind of talks about how to leverage Facebook and Instagram and you have content
37:06
on this as well.
37:07
You actually just saw your post on housing wire, but how to leverage Facebook, Instagram,
37:11
Twitter, LinkedIn, because those are all different streams and you should have all different
37:15
strategies.
37:17
And that's that's kind of back to the point of respecting the psychology of social media
37:20
when you're when you're an Instagram, you're in a different frame of mind than when
37:24
you're on LinkedIn.
37:25
And so your strategies should tweak there back to your original question, you know, people
37:31
ask me all the time, which one should I use?
37:33
All of them.
37:34
You should use all of them and we struggle with it today.
37:37
Like we're constantly tweaking and refining our strategies.
37:41
And so now we're to repurpose again, kind of a Gary V. trick, we're repurposing our
37:45
bigger content into smaller bite size chunks.
37:49
And we're respecting the psychology of social media in link or in Instagram.
37:52
And so that's why you see a lot of our stuff, not working harder, just working smarter.
37:57
It's the same content chunked up for Instagram.
38:00
And then you have like podcast forms and where we can do stuff like this where it's longer,
38:03
you can get into the weeds, you can get into the X's and O's.
38:06
So that's important.
38:07
Yeah.
38:08
Right.
38:09
And then you got Twitter.
38:10
So do you have to use it?
38:11
No.
38:12
If you're not, I think you're missing out on a gigantic opportunity nowadays.
38:16
You know, I used to use to speak 10 years ago and go, really you guys are spending 10
38:20
grand on a billboard to reach 10,000 people and maybe only five of them were your target
38:23
market.
38:24
I could spend 10 grand on social and reach only my target market.
38:28
Nobody, you know, I will not reach somebody that I don't want to reach because I can define
38:33
my market.
38:35
And we still do that today.
38:36
So if I go and put out a show, I can hope and pray that somebody's going to watch it
38:40
or I can spend $5, $20 in each one of those social streams and go out like real, real
38:45
turns to watch this.
38:46
Lenders, title, Aschro appraisers, you can do that today and it's crazy that we're having
38:50
to talk about this because it seems like social media 101, but most people don't know that.
38:55
You want to target Boeing employees.
38:57
That's big here in Seattle that, you know, that are age 35 and older in Seattle.
39:02
You know, you can do that, right?
39:03
Like originators, why would you not put that message out?
39:06
If you're a top producer, you're probably pretty confident, right?
39:10
You're probably the best lender in that town, which you can make a good case because
39:15
your volume shows that.
39:17
So why wouldn't we want to tell more people that, right?
39:20
Why wouldn't we want to tell the masses and get that amazing message out to attract
39:24
even more business?
39:25
Yeah, it's interesting because it's a question that I'm with you on that.
39:30
I don't think there is any, you know, one answer, it's like I say about marketing, you
39:33
know, hey, what works?
39:34
Well, everything works at various levels.
39:36
It depends on the person location, et cetera, the application of it.
39:41
I think we just try a thing like once or twice and we don't see immediate results, whether
39:47
it's social or video or blogging, and we just give up too much.
39:50
I mean, that's an industry issue.
39:51
That's an American thing.
39:53
If you go back to our videos 10 years ago, they were horrible, but we stuck with it.
39:58
Right.
39:59
And that's the same with any strategy to your point.
40:01
I would just encourage people to stick with it, refine it, tweak it.
40:05
That's the important part is, you know, each week we learn something new every day on
40:09
our show of what to do better for next week.
40:11
And that's the mindset you have to have on any strategy, like, all right, how do we tweak
40:15
this to be better, more efficient, reach more people, more views, more, more likes.
40:20
And we just have, we just have that mindset, we have that mindset for the team too.
40:23
So every month, we'll have a team meeting and we'll look back and celebrate our successes
40:26
and go, all right, what are the things that we could have done better?
40:30
Yeah.
40:31
And when you start that process, it gets uncomfortable because you're kind of looking
40:34
in the mirror, shipping away your flaws, but eventually you get ultra comfortable in
40:38
a setting where you're okay talking about what you can do better.
40:41
And sometimes it's what I can do better.
40:44
And God, I mean, I mean, the companies that can do that from the top down are going to
40:47
really set themselves apart.
40:49
Having those fierce conversations, which is a great book behind me, having those fierce
40:54
conversations about, hey, what's working?
40:56
What's not working?
40:58
That should be a regular strategy from CEO down or if you're running an LL running a
41:03
team down, that should just be something that happens every week, if not every month.
41:07
All right, let's pivot a little bit because I know you have a lot of info on this topic
41:13
as well.
41:14
And this is kind of a segue, if you will, from the social video discussion, what I'll
41:20
use the phrase, modern mortgage marketer, if you will.
41:24
And it's funny because lately I've been doing some work and writing some stuff.
41:28
And this morning, I think I was dealing with this topic about winning the customer early,
41:33
right?
41:34
And I think I'd be curious to get your input on why, because let me just set this up, because
41:39
we got two things happening.
41:40
We got the person that you interviewed who does 75 mil and she doesn't touch social media.
41:45
Well, the advantage she has, she's got a massive database of past clients.
41:49
Not everybody's there.
41:50
So if you're there, cool, that can feed you forever if you're leveraging it, right?
41:54
Let's just assume she clearly is.
41:56
However, not everybody's there, right?
41:58
Some people don't have that huge database.
41:59
They're just starting.
42:00
They got 100, 200, whatever.
42:02
But more importantly, it's like you want to get chosen moving forward too with new clients.
42:07
And so what that brings me to is winning the customer early, we know where are the customers
42:12
today.
42:14
They're online.
42:15
And then let's add on top of that.
42:17
We have a lot of people competing now, getting into this space, Ibuyers, Zillow's now a mortgage
42:23
company, et cetera.
42:24
And so there are, there's more noise, there's more attempts at attention for our consumers.
42:30
So my kind of dialogue with LOs is, how are you going to get chosen if you aren't online
42:36
where the attention is?
42:37
Yeah, I mean, you just summed it up in the best way.
42:40
Like the end of story, why do you want to be on social, why do you want to be online?
42:45
Because that is where the battle for the consumer is right now.
42:48
And if you have no presence, you got no shock.
42:51
All right, end of story, like the bait's over, close the book, we're good to go.
42:54
Yeah, right.
42:55
Dude, that's it.
42:56
We shot a show on that too, like being first to the customer is the pursuit for everybody.
43:02
That's why Fox News just kind of got into the game, because they know that they're the
43:06
tip of the spear.
43:07
I can't remember that show, Aaron, if you can find it, but it talks about how Fox News just
43:11
got into real estate.
43:14
And they know that they have thousands, if not millions of viewers, well, if they can
43:19
get to the consumer and they have, say, a real estate brand or a mortgage brand, right?
43:24
They can reach the consumer first.
43:26
And so that's where the biggest battle right now is happening is trying to reach the consumer
43:31
first in the show.
43:32
I kind of pointed out, I get it and I know that's what's happening, but I also tried to
43:37
help the consumer understand how absurd that is.
43:40
And I use the analogy, like, hey, you're a consumer and you don't know what's realtor
43:43
to work with.
43:44
And so I'm going to go into the, you know, safe go field or, or, you know, where the
43:48
Fox play and it's full of realtors, there's 70,000 realtors there.
43:53
And if I leverage the first person I talked to, do you realize how absurd that is?
43:57
There's 69,999 other realtors there.
44:00
Maybe I should do some research and find the first one or find the best one, not the first
44:06
one.
44:07
But that's what consumers are doing when they just give up and be like, oh, so and so,
44:11
I buyer, you know, company reached out to me first or Zilla Mortgage did.
44:15
Okay.
44:16
Like that's not the end of your homework.
44:17
I hope like there's a lot of other companies and realtors and liners out there.
44:21
Maybe we should do a little homework.
44:23
So I get it and it's 100% right.
44:26
The battle for the consumer is happening right now because they come for these companies
44:29
out.
44:30
They can be first.
44:31
There's a really good chance that they're going to get that business.
44:33
I just want to educate the consumer that that's not always the best person to work with
44:38
just because they happen to reach you first.
44:40
Does that make sense?
44:41
Yeah.
44:43
You know, unless you're at Ricky Bobby's brokerage and if you're in first year last, so.
44:47
Right.
44:49
Right.
44:50
Right.
44:51
But no, I think that is that is part of the battle.
44:52
So you're up in the like the heart of like I buyer territory.
44:55
Man, we got them all red, Vin Zillow, frigging Amazon.
44:57
Yeah.
44:58
Oh, so talk about what's the what's the feeling?
45:02
What are the emotions you're seeing come from like realtors are really kind of the big
45:06
focus of this lenders a little bit less.
45:08
But what are you hearing and feeling up there?
45:10
Oh, man, it's crazy.
45:12
So Seattle has some big headwinds for realtors and lenders.
45:17
So we have a ton of I buyers.
45:20
We have a ton of fentech and we're the first animal asked for realtors to change the
45:26
commission structure, which I do believe is coming to the rest of the nation.
45:30
Yeah.
45:31
I want to know more about that.
45:32
Get specific when you.
45:33
Yeah.
45:34
So right now, most listings across the nation.
45:37
We have a really has a conversation about how the buyer's agents pay because it's already
45:41
built into the price, right?
45:42
There's 6% in the Lister House, there's typically three for the listing agent, three for the
45:47
buyer's agent.
45:48
Well, NAR got sued for that.
45:51
And so out of that, the NMLS, Northwest NMLS said, okay, what we're going to do is say
45:56
that there's no longer you're no longer forced and never really forced.
46:00
You never were forced, but they said you're no longer forced to build in a buyer's commission.
46:05
So what happens now is people, mostly the red fins of the world are have the opportunity
46:11
to list the house without any buyer's commission.
46:14
It's just the seller.
46:16
So now realtors have to fight for their commission and either have the buyer paid out of their
46:23
pocket, which is going to be an interesting conversation or maybe add it as a closing
46:28
cost, maybe up the purchase price to cover their commission.
46:33
And so it's a crazy, interesting time in Seattle to be in the business because this is
46:39
happening as we speak.
46:40
And I've done a lot of research on this, obviously.
46:43
And then I've been to town hall meetings.
46:45
I spoke with other, you know, the Keller Williams of the world, the John Scots, Wynda
46:48
Mary, I speak.
46:50
And they're all kind of scrambling to try to figure out like, how are we going to adapt
46:53
to this change?
46:55
Some have good ideas, some don't.
46:58
And we don't know how that's going to play out.
47:00
So the first in the nation to go down this route, I think realtors in a self preserving
47:07
hope and pray say, oh, business is usual.
47:10
And I want them.
47:11
I have their back.
47:12
I wanted to be business is usual.
47:13
I just don't think it's going to be.
47:15
A lot of people, if you're a conspiracy theorist, think that Redfinn is behind the original
47:21
lawsuit because obviously pushes their model forefront.
47:25
I don't know if that's true or not.
47:26
It does make sense if they were.
47:29
But so long story short, buyers agents are now kind of having to fight for their commission.
47:35
And also, they're not forced.
47:36
So if you, if I'm a buyer's agent and Aaron, Aaron, who's over here is going to buy a house
47:41
and he wants to go look at one, two, three, a street.
47:44
If there's no commission built into that listing, it'll show up, first of all, on the listing
47:49
remarks when you're like on Redfinn, it'll say, hey, zero commission for buyer's agent,
47:54
which is crazy.
47:55
But as a realtor, I'm not forced to show them that house, which is weird because it's
48:00
like, well, that's my client.
48:02
So I want them to get the house that he wants.
48:04
So thanks for not forcing me to show the house, but I kind of have to because he's still
48:08
my client and he wants to look at the house.
48:10
So there's a lot at play and we're very early to this.
48:13
And for the other neighboring states, you really need to pay attention because I do think
48:18
this is coming your way.
48:21
Northwest MLS is an early adopter typically.
48:26
So it's not surprising that they would be first to make these changes, but I do think
48:30
this is coming to the rest of the nation.
48:31
I'm looking at my email because I'm trying to find the article that was sent to me about
48:36
that lawsuit.
48:37
If I recall correctly, was dismissed recently, the, the NAR lawsuit?
48:43
I think NAR wants it to be dismissed.
48:45
Yeah.
48:46
We have a show with Brian Stevens, that's a podcast style interview where we actually
48:51
in the comment sections, we have the actual lawsuit itself.
48:54
Yeah.
48:55
So, you know, I can, I can get you the, the legal verbiage if you'd like to see the changes
49:00
that were made.
49:01
No, I just wish I could find it because somebody had sent that off to me recently, anyways.
49:06
Do your research.
49:07
But yeah, it's, it's very interesting to see how this whole thing evolves crazy to think
49:13
that now you're going to throw, be throwing that into the mix with the seller, not having
49:18
to pay the buyer's commissions, that what I, whatever you said, the buyer's agent commission.
49:24
Yeah, basically they, they, they still can list the house with 6%.
49:29
That's still an opportunity.
49:30
Sure.
49:31
Red fins of the world are certainly not going to want to do that because their narrative
49:34
is going to be, hey, it's cheaper to sell with us.
49:36
We're only going to build in 3%, maybe even, maybe even less and let the buyer's agent
49:41
figure it out on their own.
49:43
So I think traditional realtors will try to, we'll, we'll band together hopefully and keep
49:48
it at business as usual.
49:49
But again, the new I buyer type platforms and the red fins of the world will certainly
49:53
leverage that to try to push out traditional realtors.
49:57
What's your take on, you know, the word that comes in mind is like survivability of the
50:04
I buyers.
50:05
And I'm thinking about the context in that, that you had this awesome interview, which
50:07
for those listening right now, you need to, at some point, go to the resource.tv and
50:13
watch the interview that you guys did with Kenny Claus.
50:16
Oh, yeah.
50:17
Yeah, because I think that's, as I talk to realtors all the time and all that kind of,
50:21
I think that's the approach realtor should take.
50:24
But what's, what's your opinion on, you know, the market share grab the consumers willingness
50:31
to go that route versus traditional?
50:36
I've been trying to scream from the rooftop to, for traditional realtors to put out more
50:40
content.
50:41
My, my take on is, is we just need to be educated.
50:44
First, as realtors, as lenders, we need to know what truly that I buyer platform looks
50:49
like.
50:50
So when a consumer comes to us, we can educate them versus just saying, Oh, that's dumb.
50:54
Why is it, you know, oh, well, I've done research.
50:57
They typically net 11% less.
50:59
Okay.
51:00
Well, that's some valuable information.
51:02
So first out, out of the gate, do you want to net 11% less with I buyer platforms versus
51:07
traditional?
51:08
Most people don't like netting 11% less.
51:11
Yeah.
51:12
Oh, they say they're cheaper historically.
51:15
They're seven and a half percent fees were traditional realtors or six percent.
51:18
Good piece of information.
51:19
But we don't know that if we don't do our homework and I don't think enough of us are
51:23
doing our homework to understand the new competition coming in.
51:27
So that's step one.
51:28
Step two is doing what you and I do.
51:30
Make content, educate consumers as to, Hey, there's this new thing.
51:34
This is why Kenny Clouds is so brilliant.
51:36
I've already done all the research.
51:37
So if you want to know about the new thing, you come to me first.
51:39
And by the way, they're, they're a buyer just like anybody else.
51:43
And this is why I think it's so brilliant.
51:44
So I'll list your house and I'll, I'll get their offer.
51:47
I'll get 10 I buyer company offers and I'll present it to you, but I'll also get traditional
51:52
offers that typically will net more and I'll present that to you.
51:56
So now he's controlled the narrative, right?
51:59
He hasn't lost business to an I buyer platform because he's basically just treating
52:03
him like a traditional buyer.
52:04
In fact, sure, is it low, give me your best offer?
52:07
Sure, open door, give me your best offer or sure, you know, offer pad, give me your
52:10
best offer.
52:12
And so which is smart because you kind of pit them against each other, but then you also
52:16
have your traditional, you know, person in the community saying, Hey, I'll give you
52:20
X amount.
52:21
Right.
52:22
Some people that, you know, may get transferred across the nation and have to move in 10 days
52:28
and don't really care about what they net, well, they might go with the I buyer platform.
52:32
Yeah.
52:33
You know, but most people, and I've been doing this a long time, want to try to maximize
52:37
their asset, their house, and the net profits coming out of that and they typically aren't
52:42
ready to move in two days and need 30 days to get their affairs in order.
52:46
So I would think most people would stick with the traditional model.
52:50
The beauty of it is we're not shunning the new, we're, we're leveraging it.
52:54
It's still an option and we're giving that option to consumers.
52:57
And that's why I think Kenny's approach and response to this is so smart versus just
53:01
going, Oh, they're dumb, you're not going to make any money with them.
53:04
Yeah.
53:05
And I've seen some agents respond that way and that's a mistake.
53:07
So that's a good lesson.
53:09
And by the way, you as a loan officer listening as well, you can help your agent understand
53:14
that that's the right approach.
53:16
If you want, gather some data for them, gather a net sheet right side by side and show them
53:21
what the net net's going to be, because I've done that and agents just like they love that,
53:25
they eat that up.
53:27
Actually, the title and escrow companies, if you Google that, what you, because that's brilliant
53:30
strategy, a lot of them have done that homework for you.
53:33
So you can kind of Google that and you'll see a spreadsheet and it'll say like offer
53:36
pad open door, zillow, red pin, blah, blah, blah.
53:39
And you know, it's kind of cool because they've already done the commissions and the fees
53:43
and what an average person in that market would net versus traditional real estate.
53:47
So that resource already exists.
53:49
Again, if you want to work smarter, not harder, Google that and see if it exists for
53:53
your hometown.
53:54
And again, if not, talk to your title and escrow person because they're kind of all over
53:58
this thing.
53:59
Yeah.
54:00
I think the last note on that is don't have your head in the sand in thinking that they
54:04
aren't going to come to a neighborhood near you soon.
54:07
Yeah.
54:08
Yeah.
54:09
For sure, because like you said, I mean, heck, five, maybe 10% of the market, if what
54:14
was the number, like it's a, that's a $94 billion market or something like that for annual
54:19
transactions.
54:20
Yeah.
54:21
That's pretty good chunk of change if you get in five to 10% of that, you know?
54:23
Yeah.
54:24
Yeah.
54:25
And we just, I mean, again, educate yourself and then put out your own content.
54:28
Like, I don't want somebody else controlling the narrative, whether FinTech companies are
54:32
better than, say, movement mortgage, I'm going to control that narrative.
54:36
And the only way I can control that narrative is being educated and putting my own content
54:40
out.
54:41
And that's the same for realtors in your, in your, in your town, if, if you don't put
54:46
anything out, and I by our companies are putting out content, you're not in the game.
54:51
You're not even in the fight.
54:52
They win because there's no, there's no counterpoint to the I by our conversation.
54:56
That's why it's so important that we have to put out our content, our narrative, because
55:03
if they're the only ones putting their stuff out, that's the only one a consumer is going
55:06
to believe.
55:07
Yeah.
55:08
And, and, and once again, it comes back to what we talked about earlier is the attention's
55:10
online and you want to get chosen.
55:13
Why not put out a video, an article, a blog post, an infographic, you know, hey, you
55:18
know, welcome to town, Zillow, I buyers, right?
55:20
You know, we're glad you're here.
55:23
Homeowners, let's, let's talk about the differences, right?
55:26
And then totally like, you know, let them choose whatever, whatever the best option is for
55:30
that.
55:31
Yeah.
55:32
Yeah.
55:33
I mean, you're, you're scripting it right now.
55:34
Like, that's a perfect script for how that video would go.
55:35
You, man.
55:36
I script on the fly.
55:37
Yeah.
55:38
All right.
55:39
Sweet, man.
55:40
I know you're busy.
55:41
You got a lot of stuff going on.
55:42
Closing this out.
55:43
Anything you're doing as you enter in the end of this queue for, how are you prepping for
55:48
2020?
55:49
I'll, I'll prep it with a question and I don't, I don't know that I have the answer yet.
55:52
Maybe.
55:53
So what am I doing?
55:55
I'm telling our team, hey, if you did 30 million last year, 40 or 50, whatever your
56:00
number is, and people listening are watching, think, get that number in your head.
56:05
I think doing that same number next year is going to be twice as hard.
56:10
Hmm.
56:11
Why?
56:12
And more importantly, what are we going to do about it?
56:14
Why?
56:15
I think obviously rates at some point will go back up.
56:17
We have new competitors and Fintech and I buyer and I, and I, I'm concerned, especially
56:23
for my town, I'm concerned that agent count may go down.
56:26
So our referral partners and the opportunities to get referrals may go down with, with the
56:31
new competition and with the commission changes.
56:33
So for Seattle, we kind of have a three-headed monster that, that's facing us, doesn't
56:39
mean we're dead, doesn't mean that our business is going to go backwards.
56:42
It means that, again, we need to pivot, we need to be ahead of this.
56:45
We need to play chess, not checkers and be two, three moves ahead of this and go, okay,
56:49
I want to do 50, 25, 30 million next year.
56:52
I know it's going to be tougher.
56:53
I'm going to have a few referral partners.
56:55
So what am I going to do in this last quarter of 2019 to prep for this?
57:00
Because we come 2020, it's going to be too late and you're going to see a big reduction
57:04
in volume.
57:05
We all know.
57:06
I mean, I told you earlier, I think we started out with $256 billion worth of volume
57:11
unaccounted for it.
57:12
That's all going away.
57:13
Those are all, we'll take the gift this year.
57:15
Thank you so much for the low-hanging fruit and the refies.
57:17
That's going away.
57:18
I know 40% of my business will go away next year because we've already refinanced them.
57:23
So right out of the gate, as to why I'm saying that, I know out of the gate 40% of my business
57:27
that I did this year won't be there next year.
57:30
So the important question that I'm leaving you with, what are you going to do about it?
57:34
What are you going to change for next year?
57:36
That's a good way to close out, man.
57:37
Absolutely.
57:38
Thank you very much.
57:39
All right, so real quick, once again, for people who want to reach out with you and connect
57:42
with you, we know the website, right?
57:45
The resource.tv.
57:46
We're going to put links there, any other place you want to send them, like your Facebook
57:49
page or anything.
57:50
Yeah, follow us on Facebook.
57:52
That's where most of our community lives, but the resource.tv or the resource.tv is a
57:56
great way.
57:57
We have a lot of speaking engagements coming up, so it'll list all of those.
58:02
The next one is in Seattle, and then we have tons of them next year all over the nation.
58:06
I don't even know I had to look at my calendar.
58:08
Awesome.
58:09
If we're in your neck of the woods, we'd love for you to come out and meet us.
58:13
Fantastic, man.
58:14
Listen, Ryan, can't say I appreciate you enough.
58:17
You are a leader.
58:18
You're leading from the front in our industry, so, man, thanks for doing all the great stuff
58:21
you do.
58:22
It was a pleasure to have you back for a second time on the show, man.
58:25
Appreciate it.
58:26
Awesome.
58:27
All right, listeners, as always, you know what you need to do if you like this episode
58:28
or any of them.
58:29
Hey, leave us a little love, a little review out on the inner webs, and we will see you
58:34
on the next one.
58:35
Bye for now.
58:36
Thanks for listening to Mortgage Marketing Radio.
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