Your First 30 Days In Real Estate – Build Your Database

build your database real estate

Build Your Database:

Part 4 of the series “Your First 30 Days in Real Estate”

So, as you progress in your first thirty days as a new Real Estate agent, only read this if you have done Step One, Step Two and Step Three (see what I did there?) You have got to build your database. In other words, your database is the people that you’re going to market to, that you’re going to prospect to, that you’re going to reach out to, that you’re going to provide value to, and that over time you’re going to hopefully cultivate relationships with. Starting now, if you’re a new real estate agent start collecting the contact information. Names, cell phone numbers, email address, mailing address of every person you can think of. The bigger your database, the more successful you’ll be.

Communication hangers

Start With Personal Contacts

Real estate is the most personal business in the world, so where are you going to start? People that know you best, your friends, your family. You want to get to work, immediately, on making sure that they know that you’re a real estate pro, you mean business, and you want their business. There’s no worse feeling in the world than you just got your real estate license, you just passed your test, and your best friend sells their house with some other agent. Usually, it’s because they didn’t know you had your license. It’s not because you’re new. More often than not, the reason that you won’t get familiar business is because they did not know what you did for a living. How would they know? You’ve got to tell them. You cannot be afraid to let everybody in the world know what you do for a living. Collect a database.

CRM Database

Talk to your broker and see what sort of database collection software they might have. If they don’t have anything they might recommend or they give you different ideas, there’s lots of CRMs out there. There’s even some that are free that you can integrate into Gmail. So if you’re a startup and you’ve got no money, start with the free. Then, when you build your empire, start paying for more advanced CRMs.

You guys have seen this in action, right? Have you ever gone to a website and bought something, and then all of a sudden, for the next six years, on a regular basis, you get an email from that company, even though you only bought that one thing six years ago? You’re in their CRM, and they’re going to keep reaching out to you. What you need to understand is you’ve got to stay at the forefront, because real estate is unique. Everybody’s not buying a house today. Everybody’s not selling their house today, but when they do, I need to be at the front of their mind. The only way I can be at the front of their mind is if I’m constantly reaching out. The only way you can reach out is by building your database. You need to start that now. Let me show you how important this is and how personal relationships matter. Remember, real estate’s a numbers game. The more people you reach out to, the more people you talk to about real estate, the more clients you’re going to have.

Let’s just say my conversion ratio is 40:1. For every 40 people I reach out to, one turns into a client. If I wanted to sell 10 houses, how many people do I need in my database? I need 400, right? If I want to sell 100, I need 4,000. The number just gets bigger, and that’s what a database is all about. What people will tell you is the reason they pick a real estate agent is because they’re somebody they know, it’s a personal friend, or they were referred from somebody. In your first 30 days, your goal is just to get that first client. You can build an empire in one client. Check out these stats: If you want to know where people find their real estate agents, in the 2015 profile of home buyers and sellers from NAR, 73% of sellers used an agent that was referred to them by a friend or family or was an agent they’d worked with before. 61% of buyers work with an agent that a friend or a family member referred to them. Immediately get to work on your friends and family and get them to understand and take you seriously as a real estate professional. Your friends and family alone can help you build your business.

For example, your Aunt Mae might have a friend who is selling her house, and she gives them her nephew’s business card. You’re off and running. So in your first 30 days, your goal is to build your database, get it in an organized system, and then really start working, reaching out to friends and family and making sure that they know that you’re a real estate professional.

Get them to take you seriously.

The fact that you’re new does not matter as much as the fact that they don’t know what you do. I can’t hire you if you don’t ever tell me you got a real estate license. Your name is now “Jane, Realtor” or “Jane, Real Estate Broker.” Me, when I was highly active in pursuing new business, “Chris Donaldson, Realtor”, like automatic clockwork. Not because I’m shoving it in your face, because I just want to make sure you know what I do for a living. Believe me, that matters.

So, start building your database with as many people as you can get in there as possible. Even if you have the most beautiful marketing piece ever made for real estate, and you are the greatest graphic design artist ever, if you don’t have a database who are you going to send it to? Who’s going to read it?

Your goal is to build your database in your first 30 days.

If you’ve got a scanner, and a stack of business cards from all the people that you’ve collected over the years, run them through your scanner. Get them into a program. Each one of those is a potential client. Referrals and personal relationships are what real estate’s all about. Start with your friends and family, and then build your database. Everybody wants to jump to step eight, but you’ve got to start systematically at step one, which is really these five keys to do in your first 30 days.

If you saw something in there you can use, please make sure to reach out and let me know. Hit me up on Twitter, #OfficeHours. Hit us up on Facebook, #OfficeHours. If you’ve got questions or curiosities, a specific question that you’d like to ask, that’s the fun. Email your question, officehours@donaldsoneducation.com. Love to hear from you. There’s nothing like being able to give you the value you deserve by answering any burning questions that you have.

 

 

Your First 30 Days in Real Estate – Think Like a Business

think like a business

Think Like a Business:

Part 3 of the series “Your First 30 Days in Real Estate”

In your first 30 days as a real estate agent, you need to begin every day and operate like a startup business. In other words, acquire the business mindset.  Now that you believe in yourself (part 1) and now you’ve got a goal in how much money you want to make or how many houses you want to sell (part 2), the third step is to say “I’m a business.” Let’s say that again. “I’m a business.” Don’t most of you get into real estate for a lot of different reasons, but some of them are “I don’t want to work for anybody anymore. I don’t want to clock in and clock out. I want to have the freedom to operate the way I want.” Well, that sounds like a business owner or entrepreneur. Step number three is you need to begin to understand what it means to run a

Most of you get into real estate for a lot of different reasons, but some of them typically sound like this:  “I don’t want to work for anybody anymore. I don’t want to clock in and clock out. I want to have the freedom to operate the way I want.” Well, that sounds an awful lot like a business owner or entrepreneur. Step number three is you need to begin to understand what it means to run a business because you’re a business. It’s time to think like a business and act like a business owner.

“I’m a business.”

The Awesome Thing About Real Estate

What’s awesome about real estate is there’s no ceiling to how much money you can make in any given year. There’s no cap. You can make as much money as you’ll go out there and earn, but technically there is a basement, isn’t there? If I don’t do anything, it’s going to be hard for me to make money. If you’ve ever run a business before, you already know the mindset. This is what it takes to think like a business.

As a business owner, I get paid last. All the bills get paid. All of our employees get paid. All of our vendors get paid. Every single bit of that gets paid before I do. If and only if there’s money left over, then I get paid. That’s the business mindset. I know I get paid last. I’ve got to produce, to make sure there’s money left over after paying expenses.

You’re a real estate agent. You need to establish the idea that every single day you have a routine, a schedule, and you need to get into the routine of what a business owner that owns a real estate business is going to do every single day. Now, don’t say, “Oh, good, I got into real estate, so I don’t have to work anymore.” No, work like crazy your first 30 days! Set up a schedule where you’re working five days a week. Then, the important thing is what is my routine going to look like?

as a business owner is that you need to learn the difference between being busy for the sake of being busy and being productive

 

So What Should You Be Doing?

You might say, “Work? What do I do?” What you want to understand as a business owner is that you need to learn the difference between being busy for the sake of being busy and being productive. Think like a business. At some point, you may reach the point in your career where you’re almost on autopilot to a degree, where you’re not going to have to work crazy hours because you’ve got a system in place and productivity at an all-time high to where you won’t have to work like that. But you’re a startup business. Your first 30 days, work as hard as you possibly can. Every waking hour that you have available for real estate, wo

You might say, “Work? What do I do?” What you want to understand as a business owner is that you need to learn the difference between being busy for the sake of being busy and being productive. Think like a business. At some point, you may reach the point in your career where you’re almost on autopilot to a degree, where you’re not going to have to work crazy hours because you’ve got a system in place and productivity at an all-time high to where you won’t have to work like that. But you’re a startup business. Your first 30 days, work as hard as you possibly can. Every waking hour that you have available for real estate, work on it. Then, when you’re working, do things that are productive, not things that are keeping you busy.

Do These Three Things in Real Estate – All The Time

 

real estate sales

If you want to understand the business of real estate, it’s three things. Real estate is all about prospecting, presenting, and closing. It’s really that simple. If you want to be productive, you better be prospecting, you better be presenting, or you better be closing, or else, you’re just being busy. Prospecting is the hard part. That’s the part you’ve got to really work on as a new agent, but if you’re not prospecting for new business, you’re presenting. You’re showing houses to somebody that may by or you’re sitting at a listing presentation with a seller that may hire you. Then, closing is getting transactions signed, getting your listing agreements signed, getting purchase agreements signed. Those are the three things you should be doing. If you’re not doing something related to prospecting, presenting, or closing, you’re just being busy. You’re not being productive.

Business owners understand the importance of making sure they’re productive. Do you have any idea how many emails and phone calls and messages we get in this office every day? What I want you guys to know is if I did just sit there, I could just answer emails all day long, but at some point, we’re going to have no more customers to answer, because I’m not doing the things that are productive to bring in new business. You’ve got to have the business owner’s mindset, to think like a business means to think about moving the company forward every day.

I would wake up in the morning and go, “Man, I just started a new business.” All the pressure and the fear that comes with that is good. It’s natural. Pretend you have investors. If you don’t get this business going, you’re going to have investors knocking on your door wondering when am I getting my money back. You’re a startup business. Operate that way every single day.

Hopefully, you like what we’ve got so far in this series. Look, I’ve been a full-time real estate agent. I’ve sold millions in real estate. I loved the business, and I still have clients that I work with, but what really gets me up in the morning, my why is helping share with you how you can build your real estate business.

If you saw something here you can use, please make sure to reach out and let me know. Hit me up on Twitter, I love seeing you there @christalksdaily. Hit us up on Facebook, @chrisdonaldsonHQ.

If you’ve got questions or curiosities, reach out. A specific question that you’d like to ask? –  that’s the fun! Email your question, chris@christalks.com. I’d love to hear from you. There’s nothing like being able to give you the value you deserve by answering questions, burning questions that you have. Also, let me know you’re finding these articles helpful by liking them and sharing them on social media! Also, if you are looking to get started in the real estate business click here for information on Donaldson Real Estate School and all of our courses and exam prep programs.

Why a Real Estate Career Is Still a Good Idea

real estate career 1

On a recent episode of my real estate talk show #OfficeHours, we dove into the “State of the Union in Real Estate.” Obviously,  I am asked all the time whether or not real estate is a good career since I do own and operate a real estate school as its CEO. In this post, I’d like to rehash some of the statistical data to show you why now is a fantastic time to consider a real estate career.

real estate career 1

Key Takeaways from The Show:

  • The way consumers shop for real estate is dramatically different

  • People deciding to sell their home on their own (FSBO) is near all-time lows

  • Statistics show more people are using real estate agents than in past generations

  • A career in real estate is here to stay

The Evolution of Real Estate Search

In recent research reports by both The National Association of Realtors® and Zillow®, statistical data was compiled by experts WAY smarter than me and with WAY more access to resources to find out who was buying and selling homes, and whether or not they chose to use a real estate agent. As technology has taken over our daily lives, mainly by way of the cell phone, the way consumers are shopping for homes is much different now than say 10 years ago. Since almost everyone in our great country has some sort of a smartphone, they are picking up and looking at real estate sites and apps almost all the time. But depending on who you ask, you might get a whole bunch of varying opinions and thoughts on whether this is helping or hurting professionals who maintain a real estate career.

For YEARS, the real estate industry did everything possible to put a digital blockade in front of the consumer keeping them from being able to access real estate listings and real estate data. The concern by the persons making those tough decisions was that if the consumer had access to the listings and to the data, that they wouldn’t need a real estate agent near as much. Taking a step back, you could see why they would be concerned. Many of the powerful agents and brokerages at the time (circa 2007) built their businesses with MLS books, private MLS website access – and therefore one of the most important value propositions of the real estate agent was to be able to show you houses for sale on the market. That doesn’t make them bad people or poor professionals, although it has shown to have made them very, very wrong.

real estate career 2Along comes 2007 and some guy named Steve Jobs at a little ol’ company named Apple Computers invented something called the iPhone. I remember the opening presentation like it was yesterday as he said: “it’s an iPod, a phone, and an internet device – get it?.” Little did we all know what sort of impact that was really going to have on the world, but specifically the real estate industry.

Along with being able to easily access the web more effectively from a mobile device, text your friends and use this whole “SMS” thing, the real game changer was the ability for a whole new industry to develop around mobile-ready platforms and apps. So as consumers became almost immediately attached to their iPhones, one of the immediate desires was easily finding and searching for real estate listings. The consumers wanted it, the world was probably ready for it, but as an industry, we basically said “no!” Not even a “not yet,” just NO to the consumer.

Enter Zillow.

While the big boys in the real estate industry were building walls, others in the tech community were working to break them down. Spencer Rascoff, the co-founder and current CEO of Zillow, first showed his pension for consumer access to information by helping to found Hotwire.com. As you may be familiar, Hotwire was one of the earliest companies that intended to take the visibility of booking travel out of the hands of travel agents and into the transparent new internet universe. Like all companies in a capitalist world, Zillow was born out of answering the need for consumers to provide easy to use and beautiful access to real estate listings and information when and how they wanted it. Turns out, over the past ten years Zillow was more on the right side and the big real estate industry was on the wrong side.

The difference? One was listening to what the consumer wanted, the other was trying to keep the consumer away from what they wanted. Well, it’s easy to help you understand how THAT is going to go.

All the while, the real estate industry has continued to chug along. There are more people pursuing a real estate career than ever, and the industry is still going very strong. So did companies like Zillow hurt real estate careers, help them, or something else?

Real Estate by the Numbers

real estate career 3

Considering what we have looked at so far, I think it is now important to look at the numbers. If you are considering a real estate career, it’s important to look at a snapshot of the industry you are about to enter. Here are a few important real estate statistics that might help bring home the point:

  1. 89% of home-sellers worked with a real estate agent to sell their home
  2. 88% of home-buyers purchased through a real estate agent
  3. Only 8% of sales nationwide in 2016 were FSBO (For Sale by Owner)
  4. The number of consumers working with an agent has grown comparatively than in 1981
  5. 98% of buyers used an online tool or resource at some point during the process

In a nutshell, after looking at the numbers a professional real estate career is looking better than before the iPhone, or heck even the internet on the scale we know it today. More people are choosing to work with real estate agents, and the technological access of listings and information is enhancing the industry it isn’t exactly harming it.

Why a Real Estate Career is Still a Good Idea

The reason is simple, as hopefully, the statistics were able to display above. MORE people are using real estate professionals when choosing to buy or sell, not less. MORE real estate transactions involve at least one real estate professional, not less. The MORE access to listings and real estate information provided to consumers, the more the consumer needs assistance from a real estate professional to assist in breaking down this wealth of information, analyzing it, and assisting with the best moves forward.

Just as the website WebMD did not put doctors out of business, no real estate website at this time is taking away the need in a real estate career. In fact, in my opinion, this open and transparent state of the economy is helping us prove our worth and perform exactly as the consumer needs us to. So if someone were to tell you “I don’t think a real estate career is a good idea anymore,” why not send them a link to this post and show them the numbers.

Until next time! You can watch the full #OfficeHours episode mentioned above by clicking below.

 

 

 

Building Your Real Estate Brand with Realtor.com

Are you getting the most out of Realtor.com? Or how about a better question, are you even aware of all of the absolutely FREE and amazing features the site offers that can help you grow your real estate business? On last week’s episode of my weekly real estate talk show #OfficeHours, we welcomed Rhett Damon of Realtor.com onto the show and we got down in the dirt and really unmasked some of the features that every Realtor should not only understand but should be taking full advantage of right now!

If you subscribe to your local MLS, then you need to know that you have a profile ready to go for you on Realtor.com. Think about it, when you list a property for sale and place it in the MLS – it is automatically syndicated to Realtor.com. This is one of the many advantages to your client wisely choosing to list their home with a Realtor. However, it is amazing to me how many Realtors have not even claimed their profile where their very own properties are being marketed all over the world! In this post, we are going to break down some of the important – and free – features of Realtor.com that you should be using right now in your real estate business.

(Full disclosure – for all features included in this blog post you must be a member of your local, state, or national Realtor Association to have them free)

Watch the Full #OfficeHours on Realtor.com with Rhett Damon Here

Claim Your Realtor.com Profile

First and foremost, let’s make sure you have claimed your Realtor.com profile! If you are a member of the Realtor Association, then it is important to know that you already have a profile setup (or saved) on Realtor.com as a member. However, it is just a shell that sits there blank and empty unless you decide to do something with it!

Remember, you don’t want possible clients or customers to Google your name and find an empty profile on Realtor.com. It just plain looks bad, and a potential lead or potential client might think you went out of business or are not really in the real estate business in the first place!

Claiming your Realtor.com profile is quick and easy, and will instantly add huge credibility and visibility to your real estate brand. If you have already done so, make sure you have the profile completely filled out with a professional picture, backdrop, contact information, and other essentials so that your profile looks as serious about real estate as you are.

Click here to see how to claim your Realtor.com profile on #OfficeHours.

Build Your Brand with Client Testimonials on
Realtor.com

According to a recent study, about 88% of people admit that they trust online reviews as much as they trust reviews of any other source. 88%! Which means potential clients and customers client testimonials feature on Realtor.comare definitely considering what others say about you before they decide if you are the right real estate agent for them.

Think about yourself as a consumer, think about the last time you were about to make a big purchase or possibly hire a professional like a contractor or a doctor – I’ll bet reviews and testimonials played into the equation. Whether you saw them on Yelp, Facebook, Amazon, or even the Better Business Bureau’s website – if you see reviews from others (good or bad) it absolutely factors into the consumer’s decision. Therefore, another great feature included within your Realtor.com profile is a testimonials feature built right in that you can use immediately to add instant “internet cred” to yourself and your real estate business.

Make sure that you follow our advice and get clients and customers to submit reviews about their experience with you! If you treated a client well, and they are happy and satisfied, you might need to prompt them to leave a review for you in order for that to get done. We all know how easy it is for someone to find the time and energy to post a BAD review, but let’s make sure the good ones are making their way onto your profile.

Click here to learn about the testimonials feature on Realtor.com

Your Secret Weapon – The Content Sharing Hub

If you have a website, blog, Facebook page, or any other web presence already then you probably already know the importance of producing and presenting content to the world as a way of generating leads and building brand presence. (If you don’t have a website, please watch this episode of #OfficeHours). This is what we call “content marketing,” and it really is king in this day and age of the mobile device and social media. Heck, what you are reading right now is a type of content marketing! It is key, and it should be employed by any real estate agent looking to build their brand and become a presence in their local marketplace.

But what about content? I have heard it all before. “I am not a writer Chris!” “I can’t shoot professional videos and make my own commercials Chris!” “How in the world do you expect little old me, the local real estate agent, to compete with these content giants?” Exactly. That is why you need to check out a really cool feature from Realtor.com which is called the Content Sharing Hub. Again, it is FREE and could be employed by you right away.

What is the Content Sharing Hub? Well, to give you an idea there are a series of videos and commercials featuring Elizabeth Banks which aired on television or were produced specifically for social media. And the Content Sharing Hub is built and designed so that you, the Realtor member, can take this content absolutely free and employ it on your personal sites. You can literally copy and paste from the site and have a professionally shot video about new home buyers and it will show up on your Facebook page. How easy is that?! Want videos that you can include in a listing presentation or possibly include in an interview with new home buyers? Done! Again, there is no additional membership fee it is included with your membership to your local Association of Realtors.

How’d I Do That? See Below

Click here to see us discuss the sharing hub on #OfficeHours

Integrating the .REALTOR Domain with Your Profile on Realtor.com

Another fantastic way that the National Association of Realtors is working to help its members is by the creation of the .realtor domain. Just as it looks, rather than having a .com or a .net – if you are a real estate professional you can establish a unique presence on the web as a real estate professional by using a .realtor as your domain. Pretty cool, huh? Now the .realtor domain does come at a cost, as all domain names do, and you can find out more information about this topic specifically here.

So with one last shameless plug for #OfficeHours here, one of the reasons I enjoy the show is that we do live Q&A to finish off each show. In this episode discussing Realtor.com, we had a question from the live internet audience about integrating your Realtor.com profile with a .realtor domain. Of course, Rhett had a great answer for this and obviously the two are designed to work beautifully together. Without saying too much on the topic, I think it is best if you just watch this short clip on how it all works.

Market Reports and Research for Realtors

If you have ever been in a training session with me, you know one of the big questions I like to pose to you as a real estate audience is “what makes YOU an expert?” It’s a fun discussion because if you have never been in a session with me before, the simple proposition makes some people uncomfortable. However, most real estate agents get it and what I am trying to remind us all is that we must become actual experts in the field of real estate if we intend to continue having clients pay us for our service!

market reports on Realtor.comOne great way to display your expertise is by knowing your market. Think about it, if you sit down with a seller to discuss the possibility of listing their home what do they want to know most from you? They want to know how much their home is worth, they want to know about the market, and they will probably want to know if the Zestimate they pulled down from Zillow is right! So we already understand the importance of the CMA, and knowing our market, is one of the important displays of expertise that our seller is depending on.

Therefore, as a company which caters to real estate professionals Realtor.com has a unique page built just for you which is run by their team of Economists and Researchers. This fantastic site provides data, research reports, trends, graphs – you name it all in the name of providing YOU the real estate professional with free information that you can use to help build your expertise or stay on top of the market. Heck, you can even pull local market data and graphs and use that as a part of your listing presentation! See what I mean? The possibilities are endless. Make sure to take advantage of this research and data, and make sure that the next time you are discussing the market with a potential client that you actually have the data to back up what you are telling them.

Here is the section of #OfficeHours where we talked about the research page

As you can see, without payment of your hard earned dime to your local Association or the MLS you have a ton of features that you can take advantage of to help build your real estate brand. Your web presence can get an instant shot of juice simply by ensuring you do the basics that we discuss here in this post. If you are a Realtor, make sure you claim your page and fill it with testimonials! Use the Content Sharing Hub to help produce content for your personal website, and of course don’t forget about the research reports page which was built for you to keep up on the marketplace and display your real estate expertise.

My goal is to see you all succeed, and I will help you in any way that I can. Please share, like, and engage with me and this post and let me know that you are reading! You can also email me anytime at chris@christalks.com and I would love to here from you. Until next time, go get em!!

I do not work for any Realtor Association nor am I officially endorsing any product or service with this post. Any information here is simply for informational purposes in our mission to help real estate agents succeed. There are absolutely no paid product advertisements in this post whatsoever. 

The Success Formula as a Pie Chart

The Success Formula is something that I have been working on for a very long time. It is a collection of the true attributes, habits, and personality traits of those who truly find success in business. In this post, I am going to show you the basic breakdown of the main pieces of the formula itself. We are going to look at the asset allocation of a successful mind, so to speak.

 

Strategy + Psychology = Success

Everyone seems to be looking for the secret formula to success. I have had this conversation about a million times, “what do I need to do to be successful?” I have given seminar after seminar and taught workshop after workshop, and above all of the business strategies and techniques that I can offer — this formula alone is going to be your guiding light.  I am so pumped that I can sit down and put pen to paper and actually write it out for you so that hopefully we can scale and affect more of you out there who are looking to know what it takes to succeed.

When I talk about success, it could really be about any business or any aspect of life. From selling real estate, to insurance, or selling nutritional products or even makeup – it doesn’t matter your product or service it is the same guiding principles that will help you in all businesses. Actually, we can even take it a step further. Even if you aren’t selling anything but you just want to be happy and fulfilled – this “secret sauce” of success can help you too.

The Most Common Mistake

Do you want to know what the most common mistake most people make when considering becoming successful at anything? Let’s take real estate for example, and someone is starting out their career in real estate sales and wants to make it big. What do you think is the question they ask most often? Why do you think a real estate agent who wants to make $100,000 a year or more goes to a course from a guy like me or engages in coaching or training with a company like mine? More often than not, they want the silver bullet. That one simple idea or task I can give them that will help them close more sales and make more money. The problem is that there is no one silver bullet that will get you to success. There are many tools you will need in the arsenal, and anyone who sells you on or makes you believe that you just need to do “this one thing” is probably full of it. Sure, we have tons of really good ideas that can help your business grow tremendously. However, if you are looking for that one quick thing to get you over the top you just might be missing the point altogether.no way sign

There is no one simple task you can perform to be instantly successful. If you truly want a career, a business, a life worth living that will last – it is going to take time and it is going to take much more than just a 3 hour seminar and a list of things to do. Is a list of things to do or a proper business strategy important? Of course! However, it is not the only piece of the puzzle. In fact, I am going to argue that it is not even the most important piece of the success formula. There is so much more to it than that.

Your Success Asset Allocation

If you have invested any money in your lifetime, such as in an IRA or a 401k – you probably have heard the term “asset allocation.” If you are still too new to the world or just starting out, maybe this is something you have heard in passing but never really given it much thought because you are not quite there with your finances just yet. To keep it simple for those of you that might need to know, in investing asset allocation is the idea of taking your money and allocating it to various different types of investments. Therefore, rather than having all of your eggs in one basket (such as the stock market) you may also allocate some of your money to other investment vehicles such as bonds, real estate, or even just plain old cash such as a savings account.

So if we are going to think about the success formula, you need to understand that you have a limited amount of assets as well. Allocating your own personal resources to the proper channels is going to be critical to succeeding in business as well as in anything else. For instance, think about your daily routine now. You only have so much time, right? You only have so much energy, right? You only have so much effort and intensity you can give to something daily right? Good! That means you are human. What I want you to understand about the success formula is that allocating your resources in the proper percentages from one bucket or another are going to be massively important in your track to being successful in real estate or any other business.

In fact, we discussed this very thing recently on my weekly YouTube show #OfficeHours. Click below to see the discussion!

The Secret Success Formula of a Champion

If you truly want to succeed in business, any business, such as real estate then you need to allocate yourself appropriately. Therefore, I am going to reveal for you the most important part of the formula that almost everyone leaves out. I will say it again, this is the most important piece of the formula and most people just plain don’t consider it as a part of their plan at all!

Having the right mindset, the right attitude, the right emotion towards your life and your career is the most important part of the success formula. I have written about mindset before, such as in this post where I talk about the winner’s mindset. In other words, the strategy doesn’t matter if you don’t have the right psychology. As I mentioned earlier in this post, if you only want the silver bullet to success (strategy) it is much more like a “get rich quick” mindset rather than the type that is truly going to set you up for success. Without the right mindset, the strategy may not matter at all. Let me give you an example:

Let’s say that I take a salesman (let’s call him Bob) and give him the golden sales playbook for success. You got it, the ultimate strategy. I show him exactly what he needs to do, every single day, lay it out for him on a silver platter. However, there is just one problem and that is Salesman Bob is a self-absorbed jerk. Bob wants to make lots of money, drive fast cars, have fancy watches and have everyone in town marvel at how rich and successful he has become. Bob wants it all, and he wants it now which is how he came upon this golden playbook for success.

However, when it comes down to the critical sales appointments he continues to fail. During many appointments, Bob gets frustrated and cuts potential clients off mid-sentence. He tries to “set them straight” because obviously they don’t understand. He is the expert, after all, they need to be listening to him! Appointment after appointment he fails to close the sale, and even leaves on bad terms with these potential clients whom he expertly sought out and nurtured using the playbook. But what Bob is missing is the right mindset, and Bob lacks the emotional intelligence in order to deal with people properly. He is quickly hated by the community and gains a reputation as a sleazy salesman, and soon is back in school changing his degree and amassing more student loans so that he can get into an industry where he may not have to sell to anyone ever again.

success formula good and bad

Now let’s contrast Bob with Salesman Suzy. When it comes to business skills and strategy, let’s just say that Suzy is new to the game. She is fresh out of school and is still learning the ropes. However, when it comes to dealing with people Suzy is just the best. Always thinking of others first, she is the type of person that asks a lot of questions. She listens carefully to the other person’s answer. She understands problems that people are having and likes to help people solve them. Everybody loves Suzy, and she wakes up every day happy and fresh and looking forward to the day ahead. Suzy is killing it as a new sales associate at her firm, even though she really doesn’t know much about sales. But within just a few short months, each of her new clients is referring her to more and more of their friends and family because of the experience they had in doing business with Suzy. In other words, her meetings were so pleasant and enjoyable that her clients were becoming advocates and marketing her services for her! After the first year in sales, Suzy was given a raise and a bonus while Bob ended up leaving the firm.

The lesson here? Without the right psychology, the mindset, the understanding of how to deal with people and yourself the strategy just doesn’t matter. It doesn’t! Unless you are selling stocks or something else in a faceless computerized environment, eventually it is all going to catch up with you.

What Bob needed was to take the playbook, implement the strategy, but then begin working on the most important part of the formula – himself. If Bob only cares about Bob, if Bob only cares about money, and if Bob has that distinct aura of arrogance that comes with someone who thinks they know it all – he is not going to make it. Suzy was either born with or truly understands the success formula as it needs to be implemented. It is truly about how you treat other people, listen to their needs, and react to the world around you as if it is happening for you and not to you!

Remember this, if you want to success in real estate or any other business you need the right formula. The secret formula to success looks like this:

The success formula as a pie chart:

Mindset and Emotional Intelligence (Psychology) – 85%
Business Plan and Tactics (Strategy) – 15%

 

 success formula pie chart

 

Working with (Serious) Buyers ONLY

Working with Buyers

Whew, it is exhausting just to think about working with all those buyers sometimes! But in reality, helping a buyer through the homebuying process can be one of the most rewarding parts of your work in the real estate business.

However, especially as a new real estate agent, you really need to understand the difference between serious buyers and what I call “shoppers.” Check out this clip from Superstars 2.0 to see what I really think about this subject:

Mindset: Adopting the Attitude of a Winner

 

mindset success formulaMindset. One thing that comes up all of the time, especially with the questions I get about success and what it takes to be successful, is the idea of having the right mindset. Unfortunately as is too often the case the big mistake that I see people make is to go out and search for the right mindset instantly – in other words I want to know the right mindset and I want it right now! The problem with this idea of instant gratification is the concept of adopting the right mindset is a collection, it’s even a lifetime of strategies and practice and the way that you look at the world that is going to take time and practice to get right. It’s an unfortunate reality that as human beings we are predisposed to be negative. In other words – we are so good at focusing on what’s wrong rather than what’s right that it becomes a poison that affects people in all aspects of all businesses. Therefore, if you want to learn the idea of having the right mindset let’s talk about the first thing which is probably the most important piece: adopting a winner’s mindset.

Winner’s Mindset

winner's mindset

The idea of having a winner’s mindset is not simply the idea of winning and losing, or I have to win and you have to lose. Having a winner’s mindset involves the concept of looking at the world and things that happen and how you will typically react to those things differently than everyone else. In other words, it’s understanding how to view situations and how they affect you and actually steer you going forward. Therefore, rather than looking at things as wins and losses you need to start looking at things as victories or learning opportunities.

Wherever you are today if you are looking for the right mindset to become more successful it means that the place that you’re sitting in right here at this moment is not where you want to go. In order to get you there guess what? You’re going to have to leave your comfort zone and try things at a different level. You’re going to have to do things that are uncomfortable; that are new, that might be completely different than anything you’ve ever tried before! If you are getting results now that you’re unhappy with, if you keep doing what you’re doing you’re never going to get there. So the idea of the winner’s mindset is to first of all make sure you remind yourself regularly that you’re going to have to try new things and really put yourself out there – far far out of your comfort zone – to reach this true success that you’re seeking.

You Need to Retrain Your Mind

mindset-retrain your mind

When you put yourself out there not everything is going to work out. You’re going to experience failure. If you have a winner’s mindset you won’t look at things as wins and losses. Every single thing that happens is not necessarily a scoreboard moment. You don’t have to believe that as an entrepreneur you are looking at a win and loss record. You’re either going to win and succeed – or you’re going to learn and move on. You either win or you learn – that’s the art of having the winner’s mindset. It’s not that either I win and I lose and become a failure; it’s either I win when I succeed or I’m going to learn from it and move on to what’s next!

You either win – or you learn

You’ve probably heard that they say the definition of insanity is trying the same thing over and over and trying to get different results. Well, I am here to tell you that’s definitely true. So in order to get different results it means you need a new strategy and new techniques. This usually means trying something new, and well, what if it doesn’t work? Well if you are afraid to fail and you are afraid that it’s not going to work and all you’re ever going to do is stay in your comfort zone and not going to try something new because you’re worried it’s not going to work you’re never going to reach the success that you’re looking for!

Winners Look at Failures in a Different Light

Let’s use an obnoxious example to prove this point. If I came out with the iPhone in 1995 – I want you to understand that it would be a huge failure. Huge! The reason is because the world would not have been ready for the $700 cell phone that can browse the internet and make social media access very easy. I mean think about it, in 1995 there was not a whole lot of broadband internet out there and there really wasn’t any social media that you just had to check 50 times a day on your phone. People weren’t text messaging constantly, they were actually still calling each other. Imagine that! So if I invented the iPhone 1995 I could have been the greatest inventor in the history of mankind. It would have changed the world (so I thought), but the world would not have been ready for it yet. People would have laughed at me for coming out with a cell phone that cost $700. Consumers would be asking – like how do I sign into my AOL account using this phone?

What I want you to understand is even in business sometimes you’ll do things that are great, they might be great product, but the marketplace just isn’t ready for it yet. Or you might try a new style of marketing campaign, something that you’re putting out there providing value in the marketplace, and the marketplace just may not understand the value you thought you created. What you need understand is you’re going to have to try things, and sometimes they’re going to work and you’re going to win and sometimes they’re going to fail. But you – the person with the winner’s mindset – you’re not going to lose you’re going to learn! The adoption of this winner’s mindset is that you look for these opportunities to learn from the things that you did and didn’t work so that your business can grow in the future.

The Success Formula Includes Looking at the Failures as Learning Opportunities

The successful mindset, a winner’s mindset is all about looking at the world differently than everyone else. It is understanding that I’m going to have to try new things. I’m going to put myself out there. I’m going to have to really stretch out of my comfort zone in order to become the success that I so desire. I’m going to be happy about my wins and I will revel in my success, but then I also need to understand that if things don’t work I’m not a loser. I didn’t lose. I didn’t necessarily fail. I learned. And the next time I try something similar, or launch a new product, or think that I’m doing something innovative; the trick there is I’m going to make sure that I don’t repeat the same mistakes again. Adopting the winner’s mindset is all about looking at my business efforts and judging them on the results. It’s about making sure that I either win or that I learn, and so when I win I’m going to keep that in mind going forward and I’m not going to repeat the same mistakes; if they are mistakes at all. Likely they are learning opportunities, to get me from where I am now to where I want to go.

What to Do in Your First 30 Days as a Real Estate Agent

Are You a New Real Estate Agent?

Recently I recorded the latest edition of a little show we like to call #OfficeHours. This is literally becoming a “thing,” and it is a thing that I really enjoy bringing to you. Hosting it live, on YouTube, and taking Questions & Answers on the air is such a thrill!

On last week’s episode, I offered some advice to new real estate agents. In particular, what to do in your first 30 days in real estate. Click below and enjoy the show!

This link is from #OfficeHours (03) – “What to Do in Your First 30 Days as a Real Estate Agent” 

For more on the live Q&A show we are doing on YouTube, click here for the #OfficeHours homepage.

Why an Expert Level CMA is Critical to Real Estate Success

In this snapshot of our exclusive Superstars 2.0 real estate training program, instructor Chris Donaldson breaks down the importance and reasoning behind having an expert level CMA (competitive market analysis).

Due to the massive amount of real estate information available to the public, having a real estate expert break down the marketplace and explain pricing and value to clients is a critical real estate skill. Whether you are deciding where to price a seller’s home on the market, or you are working with a buyer and trying to decide what to offer, the real estate agent MUST have this essential skill in order to deliver first class service.

For more information on the Superstars 2.0 real estate training program – please visit https://donaldsoneducation.com/real-e…

For more from Chris, you can find him here:

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Housing is Strong – Here Are 3 Reasons to Be Optimistic

Housing is strong, and therefore I wanted to look for reasons why this is so in order to solidify my optimism. Although the market brings much uncertainty at times, looking at certain data points and demographic trends can lead even the biggest real estate skeptic to be optimistic about housing in 2016.

Here are Three Reasons I am Optimistic on Housing in 2016:

Optimistic about housing

1. Demographics Are In Our Favor

You have heard about it for years now, that the millennials are coming into the housing market and you better be ready! Largely, that has been true and is really beginning to come into form.

First, let’s remind you of who this generation is (The Millennials). A millennial is generally defined as someone born between the early 1980s and the somewhere in the mid 1990s depending on which research report you cite. This is the generation that grew up with things like Nintendo, programmable calculators, and of course the internet. The reason so many housing industry insiders should pay attention to Millennials is largely due to their size and their age.

The Millennials are Coming! The Millennials are coming!
The Millennials are Coming! The Millennials are coming!

The milliennial generation is a huge generation in terms of size, with estimates placing the total at around 83.1 million millennials in the United States in 2015. Therefore, if you were to compare that to the generation before (Generation X) you would see that there are a ton of homebuyers coming of age and this is something we should all watch closely. If you look at the numbers, Generation X and Generation Y are roughly about the same in terms of size. Therefore, if Generation X was leading the housing market the past 20 years then it will be another sizable generation of the same size (or larger) coming on board here for the next wave. In addition, millennials are just now coming of age to where buying homes and starting families is a natural priority. With the average millennial in their late 20s, we are going to see tons of movement in the coming years and this looks very promising for housing.

Oh, and 89% of millennials who did buy a home used a real estate agent to assist in the process. This is MORE than the previous generations, which bodes well for the real estate industry as a whole.

2. Unemployment Numbers are Improving

U.S. Unemployment Rate (Housing)

In the latest figures available on unemployment from February 2016, 242,000 jobs were added to the economy in February which is a solid number historically. In addition, this lands the national unemployment rate at 4.9% which is the lowest level since May 2008. That is some good news!

Now yes, while some economists and researchers will tell you the U.S. statistic on employment does not necessarily always tell the complete story – you should pay attention if you are a pro in the housing industry. Regardless of the “truth telling” from the government, one thing we can say is that these types of statistics help drive consumer sentiment and their feelings of the economy as a whole. Therefore, if the housing consumer feels good about the economy and their job prospects they are more likely to make that move on a new home with more comfort and optimism.

3. Mortgage Rates are Still Historically Low

United_States_Mortgage_Rate_History

You can look at the chart above, and see exactly what I mean. In fact, when I speak to members of the millennial generation I try and explain to them all the time why THIS is the time to borrow money – it is basically at an all time low! With today’s average mortgage rate hovering around 3.87%, that means you can essentially borrow money for about the rate of inflation (give or take). That is an excellent deal!

In the early 1980s when mortgage rates spiked to over 15%, money was extremely expensive. Let’s just do some simply math to show the difference in a typical Principal and Interest payment when the rates are at 4% and when they are at double that which is 8%.

Borrowing $200,000 at 4%: Monthly P+I payment $955

Borrowing $200,000 at 8%: Monthly P+I payment $1468

As you can see, the purchasing power and ability to qualify dramatically improves when rates are low. Furthermore, there does not seem to be any immediate threats to mortgage financing or that rates will suddenly spike. In fact, to show the system’s commitment to keeping rates low the average mortgage rate actually went down briefly after the Federal Reserve raised it’s discount rate. Therefore, don’t believe everything you hear in the media as housing and mortgages are as affordable now as ever before. That is some good news, and certainly bodes well for housing nationwide!

Disclaimer

This article is intended to point out the good news related to the housing sector, but certainly is not the whole story. Obviously real estate depends on a number of variables, this list is certainly not exhaustive. In addition, real estate is extremely local. What is happening in your home market may not necessarily reflect what is happening on the national stage. However, if you arm yourself with positive statistics and keep an eye on the good – you will generally have the more informed outlook and have the best opportunity to succeed. All statistics in this post were pulled from their appropriate sources.